Merger Presentation May 26, 2016

Contents
1.

Overview of Merger

5.

Future Management Strategy•

Executive Summary

2-3•

Mid–to Long-term Management Strategy•

Scheme of Merger

4•

Progress of Mid-to Long-term Management Strategy•

Schedule of Merger

519(External Growth / Internal Growth)

20•

Brands Developed by Sponsor

21•

Sponsor’s Pipeline (i)222.

Concepts of Merger (NMF)•

NMF’s Historical Performance

7•

Sponsor’s Pipeline (ii)23•

Concepts of Merger (NMF) (i)8•

Financing Strategy

24•

Concepts of Merger (NMF) (ii)9•Distribution Policies

25

3.

Concepts of Merger (TOP)APPENDIX•

TOP’s Historical Performance and Challenges

11•

Company Profile

27•

Concepts of Merger (TOP)12•

Structure of NMF After Merger

28•

Portfolio (NMF)

29-31

•

Portfolio (TOP)

32

4.
•

Effects of Merger
Positioning in J-REIT market(asset size basis)

14•

Overview of NMF After Merger

15•

Portfolio of NMF After Merger

17Overview of Merger

1

Executive Summary
Innovating as a top class diversified type REIT in Japan
Nomura Real Estate Master Fund, Inc. (before Merger) Note 1
Number ofproperties :252 properties

Asset size :784.6 billion yen(Total acquisition price)

Nomura Real Estate Master Fund, Inc.

(after Merger)

Number ofproperties Note 2 :272
properties

Asset size Note 3 :933.1
billion yen

Top REIT, Inc. (before Merger) Note 1
Number of：properties
Asset size

20 properties： 190.4 billion yen(Total acquisition price)

Note 1: Figures are indicated based on the assets being held as of May 26, 2016.
Note 2: Figure is indicated taking into consideration the assets whose acquisitions or dispositions have been announced as of May 26, 2016.
Note 3: Figure is the total of (i) the aggregate amount of acquisition prices of the assets held by NMF (before Merger), taking into consideration the acquisitions or dispositions of the assets which have been announced as of
May 26, 2016 (795.4 billion yen) and (ii) the estimated acquisition amount of the assets that will be succeeded by NMF from TOP (137.7 billion yen).

2

1. Realize substantial external growth➢ Growth in asset size through merger between diversified type
REITs with high mutual compatibility

2. Further improvement of income stability➢ Enhancement of risk tolerance through promoting diversification ofproperties and tenants➢ Development of a selective portfolio with high concentration in Tokyo area

Asset size：

933.1

billion yen（Second largest among J-REITs)

Top 10 properties :25.4％

Top 10 tenants :20.2％

Tokyo area :82.8％

3. Pursue sustainable and stable growth➢ Utilization of brand pipeline provided by Nomura Real Estate Group suitable
for a diversified type REIT and advanced management capability

Securing stable medium- to long-term income
And Delivering steady portfolio growthNote: For the details on the above-mentioned asset size, ratio of top 10 properties, ratio of top 10 tenants and concentration in Tokyo area, please refer to pages 2, 14 and 17.

3

Scheme of Merger▮ Scheme• Absorption-type merger

Surviving corporation: Nomura Real Estate Master Fund, Inc. (NMF)
Absorbed corporation: Top REIT, Inc. (TOP)Method of merger

Merger ratio• NMF：TOP＝1：2.62 (The allotment of 2.62 investment units of NMF per investment unit of TOP)

Resolution ofgeneral meeting ofunitholders• The proposal of Merger must be approved by a special resolution at a general meeting ofunitholders of TOP Note 1.
(As the Merger falls under a simplified merger for NMF Note 2, NMF will not hold its general meetingof unitholders.)

Asset Manager• Nomura Real Estate Asset Management will continuously be engaged in the asset management of
Investment Corporation after Merger.
<Investment Corporations before Merger>

REIT

Nomura Real Estate Master
Fund

Sponsor

Nomura Real Estate Group

Asset
Manager

Nomura Real Estate AssetManagement

Top REIT AssetManagement

Investment
unit

Unitholder (1 investment unit)

Unitholder (1 investment unit)

Top REIT

Sumitomo Mitsui Trust BankOji Real Estate<Investment Corporation
after Merger>
Nomura Real Estate Master Fund

Nomura Real Estate Group

Nomura Real Estate Asset Management

Unitholder

Unitholder(1 investment unit)(2.62 investment units)

Note 1: The proposal requires the attendance of unitholders having a majority of the issued investment units and votes in favor of 2/3 or more of the voting rights of the unitholders in attendance. If there is no contradicting
proposal, those who do not attend or vote will be deemed to have approved the proposal.
Note 2: The simplified merger procedure will be applied if the total number of the investment units delivered to the unitholders of the absorbed corporation by the surviving corporation does not exceed one-fifth (20%) of the total
number of the issued investment units of the surviving corporation.

4

Schedule of Merger
N M F
May 26, 2016

T O P
Execution of Merger Agreement

June 13, 2016

Record date for general
meeting of unitholders

July 28, 2016

Date of holding of general
meeting of unitholders

August 29, 2016

Date of delisting

August 31, 2016
September 1, 2016
Mid-November, 2016
End of February, 2017

Fiscal Period End

Final Fiscal Period End(March 1~ August 31)（May 1~ August 31）

Effective date of Merger
Payment of Dividend（Second fiscal period: Ending of August, 2016）

Distribution of cash payments
on Merger

First fiscal period end after Merger（Third fiscal period ： Ending February 2017）5

Concepts of Merger（NMF）

6

NMF’s Historical Performance▮ Established as a top class diversified type REIT in Japan through the merger of 3 REITs(as of October 1, 2015) (the “Previous Merger”)
Diversified Type Strategy(Transformation of investment
strategy)

Large Scale REIT Strategy(No. 1 asset size among diversified type REIT)

Sponsor Support(Leasing Business Value Chain)This made it possible to merge with a large scale diversified REIT
▮ Mid- to long-term management strategy (3 to 5 years after the Previous Merger: Quality phase)
Asset size 1 trillion yen

S P R Note 1

Internal growthFirst public offering

Performance
SPR
Internal
growth▶ Implementation of SPRs (Steps 1 to 3), utilizing the pipelines of the sponsor as well as
the asset management company Note 2

Sale of 17 properties (approx. 34 billion yen)
Acquisition of 5 properties (approx. 21 billion yen)

▶ Active internal growth achieved in the “upside” sectors (dividends for the first fiscal period: 2,100 yen (forecast at the beginning of theperiod) ⇒ 2,219 yen (actual))

Role of Merger
Asset size

▶ Obtain a scarce opportunity for external growth in the hot real estate acquisition

Internal
growth▶ Increase the expectation for internal growth by obtaining an office sector portfolio

Issuance of new
investment unit

marketwith high concentration in the Tokyo central area

▶ Further enhancement of the liquidity by increasing market capitalization

Note 1: SPR is an acronym for Strategic Property Replacement.
Note 2: For details, please refer to the “Notice Concerning Property Acquisition and Disposition” released by NMF on March 29, 2016 and May 9, 2016 and the supplemental materials thereof.

7

Concepts of Merger (NMF) (i)Obtain a rare opportunity for external growth
Large sized portfolio including
symbolic and selective assets

Office sector with high concentrationin the Tokyo central area

▮ Comparison of acquisition amounts by J-REITs (FY: 2015) Note 1(billion yen)

Assets held by TOP: 137.7 billion yen Note 2
NOI yield: 5.4% Note 3

200

Office (five central wards in Tokyo) ：180

77.3 %

160
140
120
100
80
60

Ave ： 32.0 billion yen Note 4

40
20
0
NMF

Note 1: J-REITs that were newly listed during the relevant period are excluded. Concerning the assets held by TOP, acquisition by NMF is to be implemented in FY 2016, but included in FY 2015.
Note 2: Estimated acquisition amount of the assets to be succeeded by NMF is indicated.
is indicated.

Note 3: Figure that is obtained by dividing the actual NOI for the 19th fiscal period of TOP by the estimated acquisition amount

Note 4: Figure is the average total amount of the acquisition prices for J-REITs which actually acquired assets during the relevant period.

8

Concepts of Merger (NMF) (ii)
Increase the expectation for internal growth▮ Increase assets in upside sectors Note 1

Further improve the liquidity▮ Increase market capitalization through Merger(billion yen)

“Upside” sectors: 58.2%

0.5%

48.1%

6.1%

Office Building
Retail Facilities(Near Stations)

Announcement of
SPR Step 2 and Step 3 (May 9)“Upside”
sector650

Retail Facilities(Residential Areas)
Logistics Facilities

10.1%

Merger Note 2：(before Merger: 55.3%)

19.4%

15.8%

700

Residential facilities
Others600

684.7+75.4billion(+12.4%)

Announcement of
SPR Step 1 (March 29)

Increase in the investment unit priceresulting from the evaluation ofmanagement performance

609.2

+7.1%

569.0
550

Leasing business value chain
Accelerate internal growth by utilizing the management
know-how of the Nomura Real Estate Group

500

Mar. Apr.
Nov. Dec.
Dec. Jan.
Apr. May.10
Jan. Feb.
Oct. Nov.
May.20Feb. Mar.
Oct.
5/10 5/20

Sep.
Sep.

Realize large-scale equity issuance ofinvestment units through Merger

Note 1: NMF categorizes offices and retail facilities (near stations) as “upside” sectors due to their capability to enhance profitability through internal growth.
Note 2: Figure is obtained by multiplying the merger ratio (1:2.62) by the number of issued investment units of TOP (176,000 units) and multiplying the product thereof by theprice of NMF’s investment unit as of May 20, 2016 (163,700 yen).

9Concepts of Merger（TOP）

10

TOP’s Historical Performance and Challenges▮ Transition of Asset Size and Distribution of TOP（yen）(billion yen)500

16,00014,992

14,220450
12,863400

13,206(Note 1)350

11,921

12,80912,654

11,884

DPU（Right Axis ）14,00012,912
13,484

13,116

Asset Size（Left Axis）

13,922

11,75912,577

10,864300

10,00010,191
Mid-Term Target of Asset Size at Listing : 210 billion yen

250

12,000

11,107

9,680

In September 2012
Nippon Steel City Produce, Inc. withdrew from sponsors

9,761
8,000

200

6,000

150
4,000
100
2,000

50
0

0
At Listing
06/03

1st
06/10

2nd
07/4

3rd
07/10

4th
08/4

5th
08/10

6th
09/4

7th
09/10

8th
10/4

At Listing(Note 2)

9th
10/10

10th
11/4

11th
11/10

12th
12/4

13th
12/10

14th
13/4

15th
13/10

16th
14/4

17th
14/10

18th
15/4

19th
15/10

At the end of 19th fiscal period(Note 2)

Asset size (Acquisition price)104.3 billion yen

190.4 billion yen

Leasing NOI yield

6.3% (1st fiscal period)

4.1 ％Unrealized gain/loss of
portfolio

11.2 billion yen(at the end of 1st fiscal period)

Average building age of
portfolio

13.5 years(at the end of 1st fiscal period)

Approx.
10 years▲5.7 billion yen
20.3 years

After 10 years from listing, the mid-term target of the asset size has not been accomplished.
There is a challenge in the growth speed.
Note 1: With respect to the 1st fiscal period, the actual number of days of management is 245 days, and the relevant DPU amount is calculated by dividing the distribution amount for the 1st fiscal period by 245 days, and multiplying it by 182 days (i.e. 365/2 days).
Note 2: “At listing” includes the NEC Building which was acquired on March 3, 2006.

11

Concepts of Merger (TOP)▮ Background of Merger

Restructuring of Sponsorship(=Necessity of a General Real Estate Developer)

Growth as a Diversified Type REIT

Brands Developed by Nomura Real Estate▮ Effects of Merger

Reinforcement of Pipeline

Acceleration of External
Growth Speed

Improvement of Portfolio
Quality

Track records and Prospect for External Growth(Acquisition Price basis)billion yen

150

Merger with a Top Class Diversified Type REIT in Japan

Drastic Increase in Asset Size
Portfolio Diversification

Expected Volume of
Property Developed by
Nomura Real Estate

Top 10 properties：84.4%

Top 10 properties：25.4%¥20 bln – ¥60 bln
100

per year5002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Before Merger (at the end of
19th fiscal period)

After Merger

Aiming at stable growth of unitholders’ value throughreinforcement of pipeline and increase in asset size

12

Effects of Merger

13Positioning in the J-REIT market (asset size basis) Note
Become a top class REIT in Japan with a leading role in the J-REIT market.
（billion）
1,200

2nd
(933.1 billion yen)

Diversified type,
Complex type REIT

Specialized type REIT

1,000

4th

800

600

400

31st
200

0
NBF

NMF
(Af ter
Merger)

JRE

JRF

NMF

OJR

UUR

DOI

ADR

JPR

NPR

KDO

GLP

MTR

NAF

MHR

TOP

Note: Based on the acquisition price described in the most recent financial reports announced by each investment corporation as of April 30, 2016.
Figure of NMF (after Merger) is calculated by adding (a) the total amount of acquisition price of NMF (before Merger) (795.4 billion yen), taking into consideration the acquisitions or dispositions of theassets which have been announced as of May 26, 2016, to (b) the estimated acquisition amount of the assets that will be succeeded by NMF from TOP (137.7 billion yen).

14

Overview of NMF After Merger(At the end of 1st fiscal period _at the end of February 2016)(At the end of 19th fiscal period _at the end of October 2015)(After Merger _as of September 1, 2016)

252

20

272

784.6 billion yen

190.4 billion

933.1 billion yen

Note 2928.2 billion yen

189.5 billion yen

1,108.2 billion yen

Unrealized gains/losses Note 3

40.4 billion yen▲5.7 billion yen

40.4 billion yen

Portfolio NOI yield Note 4

4.9%

4.1%

5.0%

Average building age

18.2 years

20.3 years

19.1 years

98.9%

99.4%

99.0 %LTV Note 6

43.4%

47.6%

45.0%

LTV Note 6(Total assets excluding goodwill)

47.3%

－

49.4%

Ending August 2016
Forecast

Ending October 2016
Forecast

Ending February 2017
Forecast

2,760 yen

9,900 yen

2,904 yen

Forecast DPU after
adjustment based onmerger ratio (TOP)7,608 yen

Number of properties Note 1
Asset size (acquisition price basis) Note 1
Total assets

Occupancy rate

Forecast DPU

Note 5

Note: With respect to the calculation method for each figure, please see the following page.

15

Notes to the Page of Overview of NMF After Merger(Note 1) Number of Properties and Asset Size (acquisition price basis)
Figure for each Investment Corporation before Merger indicates the total number of properties and the total amount of acquisition price of the assets held as of
May 26, 2016.
Figure after Merger indicates the total amount of (anticipated) acquisition price of the assets, which are scheduled to be held as of the effective date of Merger(September 1, 2016) (including Landport Kashiwa Shonan II, which is scheduled to be acquired at the same date as the effective date of Merger). With
respect to the assets held by TOP, the amount is calculated based on the estimated acquisition amount by NMF.
(Note 2) Total Assets
Figure for each Investment Corporation before Merger indicates the amount of total assets as of the end of the most recently published fiscal period (NMF: Feb
2016, TOP: Oct 2015). While the amount after Merger contains 23.4 billion yen of goodwill expected to occur as a result of Merger, such amount is the
expected amount as of today and may change in the future.
(Note 3) Unrealized Gain/Loss
Based on the appraisal value and the book value as of the end of the most recently published fiscal period, figure for NMF is obtained by adding or subtracting
the amount of impact of the acquisitions and dispositions of the assets which have already been announced as of May 26, 2016. With respect to those assets
acquired as of or after the end of the most recently published fiscal period, the balance between the appraisal value upon acquisition and the acquisition price iscalculated as unrealized gain/loss.
With respect to figure after Merger, as to the assets held by TOP, the amount of unrealized gain/loss is calculated as “0,” because, pursuant to the purchasemethod accounting, the appraisal value NMF will obtain shall be the acquisition price, and such price shall be recognized as the book value.
(Note 4) Portfolio NOI Yield
Figure for each Investment Corporation before Merger indicates the amount calculated by dividing (a) the aggregation of the actual NOI during the mostrecently published fiscal period (NMF: 1st fiscal period, TOP: 19th fiscal period) of the assets held as of May 26, 2016 and the NOI described in the appraisal
reports upon acquisition for those assets acquired as of or after the end of the most recent published fiscal period by (b) the total amount of acquisition prices.
Figure after Merger indicates the amount calculated by dividing (a) the aggregation of the actual NOI during the most recently published fiscal period for theassets scheduled to be held as of the effective date of Merger and the NOI described in the appraisal reports upon acquisition for those assets acquired orscheduled to be acquired as of or after the end of the most recently published fiscal period by (b) the total amount of (anticipated) acquisition prices (withrespect to those assets held by TOP, total amount of estimated acquisition amount by NMF).
(Note 5) Occupancy Rate
Figure after Merger is calculated by adding up respectively the leased floor spaces and the leasable floor spaces of each Investment Corporation at the end of
the most recently published fiscal period.
(Note 6) LTV
LTV of NMF (Total assets excluding goodwill basis) before Merger is calculated by dividing the total amount of interest-bearing liabilities as of the end of 1st
fiscal period by the amount of total assets deducting the amount of 76.2 billion yen of goodwill.
LTV after Merger is calculated by dividing the total amount of interest-bearing liabilities as of the effective date of Merger by the amount of total assets. LTV(Total assets excluding goodwill basis) is calculated by dividing (i) the total amount of interest-bearing liabilities as of the effective date of Merger by (ii) theamount of total assets deducting the amount of 23.4 billion yen of goodwill expected to occur as a result of Merger and 74.3 billion yen of goodwill that NMF is
expected to record as of the effective date of Merger.

16

Portfolio of NMF After Merger Note 1
Area Diversification

Asset Type Diversification
Upside potential ：58.2% Stable profitability ：41.8%

Tokyo area Note2：82.8%

Retail Facilities(Residential Areas)
Logistics Facilities

Tokyo area

48.1%

Others

82.8%

15.8%

【Reference】
Ratio before Merger
NMF

79.7%

TOP

99.4%

Property Diversification

6.1%

Residential facilities
Others【Reference】
Ratio before Merger
Upsidepotential

10.1%

Upsidepotential

Stableprofitability

Stableprofitability

NMF

55.3%

44.7%

TOP

73.6%

26.4%

Tenant Diversification
Top 10 tenants ：20.2%

Top 10 properties ：25.4%

Note 2：
Note 3 :Retail Facilities(Near Stations)

19.4%

17.2%

Note 1：

Office Building

0.5%

Tokyo’s 5 central wards：37.4％【Reference】
Ratio before Merger【Reference】
Ratio before Merger

NMF

25.7%

NMF

19.8%

TOP

84.4%

TOP

77.4%

In the tables for ”Area Diversification”, “Asset Type Diversification” and “Property Diversification”, the ratios are calculated on the basis of (anticipated) acquisition price (with respect to those assets held by TOP, estimated acquisition amount by NMF), and in the table for “Tenant
Diversification”, the ratio is calculated on the basis of rents (including common service expenses as of the end of February 2016), taking into consideration impact of purchases and sales implemented or scheduled to be implemented by the effective date of Merger.
Tokyo area includes Tokyo, Kanagawa, Chiba and Saitama.
【Reference】 Ratios before Merger are calculated by the methods stated in Note 1 based on the assets held as of May 26, 2016.

17

Future Management Strategy

18Mid- to Long-term Management Strategy
Continue Mid- to Long-term Management Strategy
and Become a Leading J-REIT

10 years after

3～5 years after the merger

Quality
SPR（Strategic Property
Replacement）
Enhancement of portfolio
quality

Internal growth

Rent increase mainly from
“Upside” sectors

GrowthExternal growth
Focused investment insponsor developed properties

Internal growth
Strengthen property brands
through full utilization ofmanagement pipeline

Implement firstpublic offering

Finance

Establishment of astrong fund brandGrowth that maintains
high Quality

Improvement of theevaluation from unitholders

Public offering in line withthe equity market’s
expectation

MasterSustainability
Asset size
A high and stable level ofvarious management
indices including asset size

NMF brand
High evaluation based on
its Quality and Growth

Become a leading
J-REIT

19

Progress of Mid-to Long-term Management Strategy(External Growth/Internal Growth)
Enhancement of portfolio quality through SPR

Growth of asset size through various methods

Acquisition ofprime assets through Merger

Asset size

Focused investment in sponsor developed
properties

External growth throughvarious methods
Reaching target
earlier

Implementation of SPR¥784.9bln¥806.7bln

FP 1 Initial

FP 2 Initial

Newly-built logistics
facility¥933.1 bln
Office aged
more than 50
years

After
MergerInitial plan 3–5 years （Quality）¥1 tlnContinue SPR

GrowthCash distribution
Raising the level of cash distribution through steady internal growth

Promotion of continuous internal growth¥2,760¥2,219¥2,100(Actualresults)
FP 1 (Note)(Initial
forecast)¥2,710(Initial
forecast)(Most recent
forecast)

FP 2¥2,904After Merger (Forecast)

Note: The management period of FP 1 is five months starting from October 1, 2015 to the end of February, 2016.

20

Brands Developed by Sponsor▮ PMO

Office New category of office buildings that accommodate businesses
styles that are diversifying with time, as well as featuring thesame functions and design standards as large-scale buildings
despite being medium-scaled.

▮

Landport

Logistics

 Logistic facilities with advanced high functions realized throughdesigns for optimization and efficiency, responding to recentchanges in the logistics environment and various tenant needs.

▮ PROUD FLAT

Residential

 Rental apartments that stand on location selected utilizing theinformation network/know-how of the development and sales
business of Nomura Real Estate Group to suit urban rental
apartments
 Controlled excellently and operated/managed appropriately
through Nomura Real Estate’s unique “design standard for housing
complex (rental apartments)”, “outline for quality control
inspection”, etc.

▮ GEMS

Retail Commercial facilities developed focused on urban areas andtenants mainly comprised of various restaurants with original
tastes, and brighten and enrich the lives of office workers andresidents in the area as well as presenting them with ideas for new
lifestyle.

21

Sponsor’s Pipeline (i)OfficeResidential

PMO Hirakawacho

PMO Shibadaimon
Name

PMO Shibadaimon
PMO Hirakawacho
PMO Nihonbashi Mitsukoshimae PJ.
PMO Nihonbashi Edo-dori PJ. (*1)
PMO Shin-Nihonbashi PJ.
PMO Iwamotocho Ⅱ PJ.
PMO Nishi-Shinbashi PJ.
PMO Shibuya Itchome PJ.
PMO Uchi-kanda PJ.
PMO Tamachi ⅡPJ.
PMO Hatchobori ⅢPJ.
PMO Higashi-Shinbashi Nichome PJ.
PMO Kita-Otemachi PJ.
PMO Hamamatsucho PJ.
PMO Ochanomizu PJ.
PMO Kanda-Sudamachi PJ.

Location

Completion (plan)
periodMinato-ku, Tokyo

Completed 2014

Chiyoda-ku, Tokyo

Completed 2016

Chuo-ku,Tokyo

May.2016

Chuo-ku,Tokyo

Jun.2016

Chuo-ku,Tokyo

Nov.2016

Chiyoda-ku, Tokyo

Jan.2017

Minato-ku, Tokyo

Mar.2017

Shibuya-ku, Tokyo

Jun.2017

Chiyoda-ku, Tokyo

Jun.2017

Minato-ku, Tokyo

Jan.2018

Chuo-ku,Tokyo
Minato-ku, Tokyo
Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo

Apr.2018
Jun.2018
Jul.2018
Feb.2019
Jun.2019
Apr.2020

Note 1 Joint Venture PJ.
Note 2 NMF and TOP are not scheduled to acquire the properties stated above as of May 26, 2016.

Proud Flat Omori Ⅲ

Proud Flat Sangenjaya Ⅱ

Name

Proud Flat SangenjayaⅡ
Proud Flat OmoriⅢ
Proud Flat Kinshicho
Proud Flat Higashi-Nakano
Proud Flat KagurazakaⅢ
Proud Flat Higashi-Kanda
Proud Flat Gakugei DaigakuⅡ
Proud Flat Mitsukoshi-mae
Proud Flat SugamoⅢ
Proud Flat Yoyogi Hachiman
Proud Flat Ochanomizu
Proud Flat Noborito
Proud Flat Nakaochiai
Proud Flat Asakusabashi
Proud Flat Monzen Nakacho V
Proud Flat Miyazakidai

Location

Completion (plan)
periodSetagaya-ku, Tokyo

Completed 2014

Shinagaw a-ku, Tokyo

Completed 2014

Sumida-ku, Tokyo

Completed 2015

Nakano-ku, Tokyo

Completed 2015

Shinjuku-ku, Tokyo

Completed 2015

Chiyoda-ku, Tokyo

Completed 2015

Meguro-ku, Tokyo

Completed 2015

Chuo-ku,Tokyo

Completed 2015

Toshima-ku, Tokyo

Completed 2015

Shibuya-ku, Tokyo

Completed 2016

Chiyoda-ku, Tokyo

May 2016

Kaw asaki-shi, Kanagaw a

May 2016

Shinjuku-ku, Tokyo

Dec.2016

Taito-ku, Tokyo

Feb.2017

Koto-ku, Tokyo

Oct.2017

Kaw asaki-shi, Kanagaw a

Nov.2017

22

Sponsor’s Pipeline (ii)
Logistics

RetailLandport Iwatsuki PJ.

GEMS Daimon PJ.

Landport Hachioji Ⅱ PJ.

NameLandport Kashiwa ShonanⅠ
Landport Iwatsuki PJ.
Landport HachiojiⅡPJ.
Landport Komaki PJ.(*1)
Landport Takatsuki PJ.
Landport Shinonome PJ.
Landport Narashino PJ.

Location
Kashiw a-shi, Chiba

Completion (plan)
periodCompleted 2016

Saitama-shi, Saitama

May 2016

Hachioji-shi, Tokyo

Sep.2016

Komaki-shi, Aichi

Jan.2017

Takatsuki-shi, Osaka

Jun.2017

Koto-ku, Tokyo

Aug.2018

Narashino-shi, Chiba

Nov.2019

Note 1 Joint Venture PJ.
Note 2 NMF and TOP are not scheduled to acquire the properties stated above as of May 26, 2016.

GEMS Kanda PJ.

Name

NRE Kichijoji Building
GEMS Daimon
GEMS Kanda PJ.
GEMS Ebisu PJ.
GEMS Jingu-mae PJ.
GEMS Shinbashi PJ.
GEMS Kayabacho PJ.
GEMS Sangenjaya PJ.
GEMS Shinyokohama PJ.
GEMS Tamachi PJ.
GEMS Namba PJ.
GEMS Nishi-Shinjuku PJ.

Location

Completion (plan)
periodMusashino-shi, Tokyo

Completed 2014

Minato-ku, Tokyo

Completed 2016

Chiyoda-ku, Tokyo

Jun.2016

Shibuya-ku, Tokyo

Sep.2017

Shibuya-ku, Tokyo

Feb.2018

Minato-ku, Tokyo

Mar.2018

Chuo-ku,Tokyo

Apr.2018

Setagaya-ku, Tokyo

May.2018

Kouhoku-ku, Kanagaw aJun.2018

Minato-ku, Tokyo

Nov.2018

Chuo-ku,Oosaka

Nov.2018

Shinjuku-ku, Tokyo

Jan.2019

23

Financing Strategy Note 1▮

Bank Formation▮（billion）

Name of Financial Institution
73.2
The Chugoku Bank
The Bank of Tokyo-Mitsubishi UFJ
72.9
Aozora Bank
Mitsui Sumitomo Insurance Company
Sumitomo Mitsui Trust Bank
58.5
Mizuho Bank
48.6
The Nishi-Nippon City Bank
Mitsubishi UFJ Trust and Banking Corpration
41.8
Daido Life Insurance Company
Development Bank Of Japan
36.2
The Chiba Bank
Mizuho Trust & Banking
13.8
The Hachijuni Bank
The Norinchukin Bank
13.4
The Hyakujushi Bank
The Bank of Fukuoka
11.7
The 77 Bank
Resona Bank
10.8
The Keiyo Bank
The Nomura Trust and Banking Corporation
8.2
The Hiroshima BankThe Dai-ichi Life Insurance Company
7.3
Mitsui Life Insurance Company
Sompo Japan Nipponkoa Insurance
Taiyo Life Insurance Company
6.5
Sumitomo Life Insurance Company
5.5
The Tokyo Tomin Bank
Shinkin Central Bank
5.2
The Bank of Yokohama
Nippon Life Insurance Company
5.0
The Yamaguchi BankThe Iyo Bank
5.0
(33 corporations) Total Amount Of Debt
(Reference) Investment Corporation Bonds
Sumitomo Mitsui Banking Corporation

4.5
4.0
3.7
3.1
3.1
2.5
2.5
2.0
2.0
1.7
1.4
1.0
1.0
1.0
0.5
0.4
458.7
32.5

(billion)

Debt Maturity Diversification

60
Debt

50

Investment Corporation Bonds

5.0 5.0

40
5.0

30
20

4.0
45.1

28.4
34.7
30.5
29.8
28.2
24.8
22.9
24.0
22.0
26.8
9.0
23.6
8.2
7.3 6.8
21.0
4.2 0.9

4.5#2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 #15 #16 #17 #18 #19 #20 #21

#26

44.0

10 22.30▮ Status of Interest-bearing Liabilities
Total amount of interestbearing liabilities
491.2 billion yen

Total assets LTV
45.0%（49.4% Note 2）Long-term debt ratio
85.5%

Average remaining
duration
3.8 years

Weighted averageinterest rate
1.00%

Fixed interest rate
ratio
89.0%

▮ Commitment Line

Loan
limit

Banks

Pursue merger effects such as decline
in average interest rate and longer borrowing period
Note 1： The description is based on borrowing terms of each REIT as of May 26 2016. As for total assets LTV,
figure is as of the effective date of Merger.
Note 2: Based on the total amount of assets excluding the goodwill.

2.2
#31

Commitment

Commitment

Commitmentline 1line 2line 330 billion yen

10 billion yen（one year）（three years）

Tokyo-Mitsubishi
UFJ, Sumitomo
Mitsui, Mizuho,
Mitsubishi UFJ
Trust,
Sumitomo Mitsui
TrustTokyoMitsubishi UFJ,
Sumitomo Mitsui,
MizuhoTokyoMitsubishi UFJ,
Sumitomo Mitsui（one year）

10 billion yen* Apart from the above commitment line, a line of credit loan of 20
billion yen (one year) is established to ensure flexible and stable
funding facility.

24Distribution Policies▮ Calculation and accounting method of the positive goodwill
 The total amount of goodwill to be arisen upon Merger is
expected to be JPY 23.4 billion (together with goodwill that
arose due to the merger of the three REITs, JPY 97.7 billion
Note )
 The positive goodwill will be booked as intangible fixed assets
on B/S. (Amortized over 20 years)

By distributing in excess of net income that corresponds toamortization of goodwill,
the level of dividends for unitholders is not affected by goodwill.

 The positive goodwill will be booked as operating expenses(amortization of goodwill) on P/L.
Note : The estimated amount as of the effective date of Merger.

▮ Basic Distribution Policy<Revenue recognition by unitholder of distribution
in excess of net income>Operating expenses
Non-operating
expenses

Distribution of the amount that corresponds toamortization of goodwill will be added tounappropriated retained earnings

Amortization of goodwill

Operating income（Based on P/LStatement）

Taxation

Amortization of goodwill (Non Cash-out item)

Unappropriated retained
earnings（Based on P/Lstatement）

Distribution
in excess of net
incomeAccounting

Distribution
as allowanceforadjustmentof temporary
differences

Recognition as
dividend

Depending on theaccounting
policies of
the investors,
dividend or returnof capital

Other
distribution
in excess of
net income

Distribution that will
decrease theamount of capital
under the Tax Act;
“deemed dividends”
and “income fromdeemedtransfer”

Return of capital(Reduction ofbook value)

Total distributions(including distribution
in excess of net income)25

ＡＰＰＥＮＤＩＸ

26

Company Profile

NMF

TOP

Name

Nomura Real Estate Master Fund, Inc.

Top REIT, Inc.

Representative

Satoshi Yanagita

Junichi Sahara

Supervisory Director

Sadahiko Yoshimura
Shuhei Yoshida

Yasuyuki Kuribayashi
Kunio Tsuneyama

TSE REIT

3462

8982

Listing date

October 1, 2015

March 1, 2006

Fiscal Period

February and August

April and OctoberTotal number of issued
investment units

3,722,010 units

176,000 units

Total unitholders equity

161,120 million yen

91,143 million yen

General Inquiries

Nomura Real Estate Asset Management Co. Ltd.

Top REIT Asset Management Co.,Ltd.

Asset Custodian

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

Administrator of Unitholder’sRegister

Mitsubishi UFJ Trust and Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

General Administrator(Organizational Administration,
Accounting)

Mitsubishi UFJ Trust and Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

General Administrator(Financial Agent)

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

－

27

Structure of NMF After Merger

Specified Related Party

Investment Corporation

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

Asset Custodian
Sumitomo Mitsui Trust Bank, Ltd.

Nomura Real Estate Master Fund, Inc.

Unitholders’ Meeting

Asset Management
Agreement

Asset Manager
Nomura Real Estate
Asset Management Co., Ltd.

Board of Directors

Basic Agreementwith respect toLeasing Value Chain

Ernst & Young Shin Nihon LLC

Information Provider

Basic Agreement with respect
to Leasing Value Chain

Nomura Real Estate

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Partners Co., Ltd.
GEO AKAMATSU CO., LTD.

Development Co., Ltd.

Transfer Agency
Agreement/
GeneralAdministration
Agreement/
Agreement on
Special AccountManagement

Executive Director
Satoshi Yanagita
Supervisory Director
Sadahiko Yoshimura
Shuhei Yoshida

AuditorInformation Provision
Agreement

Asset Custody
Agreement

General Administrator（Organizational Administration, Accounting）

Administrator of Unitholders’ Register
Special Accounts Administrative Agent
Mitsubishi UFJ Trust andBanking Corporation

Financial Agent
Agreement

General Administrator（Financial Agent）
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Nomura Securities Co., Ltd.
Mizuho Securities Co., Ltd.

28

Portfolio (NMF) (i)Acquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

Name

Location

Tokyo Area

Shinjuku Nomura Building

Shinjuku-ku, Tokyo

43,900

5.6

Tokyo Area

NRE Tennozu Building

Shinagawa-ku, Tokyo

20,500

2.6

OfficeTokyo Area

Kojimachi Millennium Garden

Chiyoda-ku, Tokyo

26,700

OfficeTokyo Area

NOF Nihonbashi Honcho Building

Chuo-ku, Tokyo

OfficeTokyo Area

Tennozu Park Side Building

OfficeTokyo Area

OfficeTokyo Area

OfficeOfficesectorArea

OfficeOfficeName

Location

Acquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

sectorArea

44,900RetailTokyo Area

Morisia Tsudanuma

Narashino City, Chiba

16,6002.1

17,50020,500RetailTokyo Area

Yokosuka More’s City

Yokosuka City, Kanagawa

13,6401.7

15,4003.4

26,700RetailTokyo Area

Recipe SHIMOKITA

Setagaya Ward, Tokyo

10,407

1.3

10,70010,914

1.4

10,863RetailTokyo Area

Kawasaki More’s

Kawasaki City, Kanagawa

6,080

0.8

7,370

Shinagawa-ku, Tokyo

12,700

1.6

12,000RetailTokyo Area

EQUINIA Shinjuku

Shinjuku Ward, Tokyo

4,260

0.5

4,570

NOF Shinjuku Minamiguchi Building

Shibuya-ku, Tokyo

10,0001.3

10,300RetailTokyo Area

EQUINA Ikebukuro

Toshima Ward, Tokyo

3,990

0.5

4,330

NOF Shibuya Koen-dori Building

Shibuya-ku, Tokyo

10,4001.3

10,400RetailTokyo Area

covirna machida

Machida City, Tokyo

3,440

0.4

4,260

Tokyo Area

Secom Medical Building

Chiyoda-ku, Tokyo

11,1001.4

11,100RetailTokyo Area

Nitori Makuhari

Chiba City, Chiba

3,080

0.4

3,560

Tokyo Area

NOF Shiba Building

Minato-ku, Tokyo

7,040

0.9

7,090

RetailTokyo Area

Konami Sports Club Fuchu

Fuchu City, Tokyo

2,730

0.3

3,240

OfficeTokyo Area

Nishi-Shinjuku Showa Building

Shinjuku-ku, Tokyo

8,140

1.0

7,930

RetailTokyo Area

FESTA SQUARE

Saitama City, Saitama

2,600

0.3

3,010

OfficeTokyo Area

NRE Shibuya Dogenzaka Building

Shibuya-ku, Tokyo

5,310

0.7

5,320

RetailTokyo Area

GEMS Shibuya

Shibuya Ward, Tokyo

2,490

0.3

2,640

OfficeTokyo Area

Iwamoto-cho Toyo Building

Chiyoda-ku, Tokyo

4,050

0.5

4,060

RetailTokyo Area

Sundai Azamino

Yokohama City, Kanagawa

1,700

0.2

1,960

OfficeTokyo Area

NOF Surugadai Plaza Building

Chiyoda-ku, Tokyo

4,690

0.6

4,700

RetailTokyo Area

EQUINIA Aobadai

Yokohama City, Kanagawa

1,560

0.2

1,820

OfficeTokyo Area

PMO Nihonbashi Honcho

Chuo-ku, Tokyo

4,320

0.6

4,520

RetailTokyo Area

Megalos Kanagawa

Yokohama City, Kanagawa

1,000

0.1

1,340

OfficeTokyo Area

PMO Nihonbashi KayabachoChuo-ku, Tokyo

5,010

0.6

5,140

RetailTokyo Area

Mitsubishi Motors Meguro

Meguro Ward, Tokyo

2,740

0.3

2,940

OfficeTokyo Area

Otemachi Tatemono Gotanda Building

Shinagawa-ku, Tokyo

4,430

0.6

4,670

RetailTokyo Area

Mitsubishi Motors Chofu

Chofu City, Tokyo

1,760

0.2

1,850

OfficeTokyo Area

NRE Higashi-nihonbashi Building

Chuo-ku, Tokyo

3,570

0.5

3,350

RetailTokyo Area

Mitsubishi Motors Shibuya

Shibuya Ward, Tokyo

1,570

0.2

1,760

OfficeTokyo Area

PMO Akihabara

Chiyoda-ku, Tokyo

4,240

0.5

4,580

RetailTokyo Area

Mitsubishi Motors Nerima

Nerima Ward, Tokyo

1,240

0.2

1,320

OfficeTokyo Area

Hatchobori NF Building

Chuo-ku, Tokyo

2,480

0.3

2,480

RetailTokyo Area

Mitsubishi Motors Kawasaki

Kawasaki City, Kanagawa

950

0.1

1,050

OfficeTokyo Area

NOF Kanda Iwamoto-cho Building

Chiyoda-ku, Tokyo

4,160

0.5

4,160

RetailTokyo Area

Mitsubishi Motors Takaido

Suginami Ward, Tokyo

850

0.1

906

OfficeTokyo Area

NOF Takanawa Building

Shinagawa-ku, Tokyo

2,830

0.4

2,820

RetailTokyo Area

Mitsubishi Motors Katsushika

Katsushika Ward, Tokyo

800

0.1

844

OfficeTokyo Area

PMO Hatchobori

Chuo-ku, Tokyo

2,880

0.4

3,050

RetailTokyo Area

Mitsubishi Motors Higashikurume

Higashikurume City, Tokyo

800

0.1

831

OfficeTokyo Area

PMO Nihonbashi Odenmacho

Chuo-ku, Tokyo

2,210

0.3

2,310

RetailTokyo Area

Mitsubishi Motors Setagaya

Setagaya Ward, Tokyo

770

0.1

831

OfficeTokyo Area

PMO Higashi-nihonbashi

Chuo-ku, Tokyo

1,690

0.2

1,810

RetailTokyo Area

Mitsubishi Motors Suginami

Suginami Ward, Tokyo

740

0.1

847

OfficeTokyo Area

NRE Ueno Building

Taito-Ku, Tokyo

6,470

0.8

6,470

RetailTokyo Area

Mitsubishi Motors Sekimachi

Nerima Ward, Tokyo

600

0.1

635

OfficeTokyo Area

NOF Technoport Kamata Center Building

Ota-ku, Tokyo

4,780

0.6

4,570

OfficeTokyo Area

NF Hongo Building.

Bunkyo-ku, Tokyo

4,890

0.6

5,000

RetailTokyo Area

Mitsubishi Motors Higashiyamato

Higashiyamato City, Tokyo

450

0.1

499

OfficeTokyo Area

Crystal Park Building

Musashino City, Tokyo

3,390

0.4

3,400

RetailTokyo Area

Mitsubishi Motors Motosumiyoshi

Kawasaki City, Kanagawa

370

0.0

378

OfficeTokyo Area

NOF Kichijoji Honcho Building

Musashino City, Tokyo

1,780

0.2

1,820

RetailTokyo Area

Mitsubishi Motors Kawagoe

Kawagoe City, Saitama

350

0.0

371

OfficeTokyo Area

Faret Tachikawa Center Square

Tachikawa City, Tokyo

3,850

0.5

3,950

RetailTokyo Area

Mitsubishi Motors Edogawa

Edogawa Ward, Tokyo

200

0.0

212

OfficeTokyo Area

NOF Kawasaki Higashiguchi Building

Kawasaki-shi, Kanagawa

7,830

1.0

7,930

RetailTokyo Area

Mitsubishi Motors Sayama

Sayama City, Saitama

160

0.0

171

OfficeTokyo Area

NOF Yokohama Nishiguchi Building

Yokohama-shi, Kanagawa

5,460

0.7

5,720

RetailTokyo Area

NRE Kichijoji Building

Musashino City, Tokyo

5,310

0.7

5,460

OfficeTokyo Area

NOF Shin-Yokohama Building

Yokohama-shi, Kanagawa

2,620

0.3

2,840

OfficeTokyo Area

PMO Tamachi

Minato-ku, Tokyo

6,210

0.8

6,560

OfficeTokyo Area

PMO Ginza Hatchome

Chuo-ku, Tokyo

3,970

0.5

4,210

OfficeTokyo Area

PMO Shibakoen

Minato-ku, Tokyo

3,900

0.5

4,150

OfficeOther Area

Sapporo North Plaza

Sapporo-shi, Hokkaido

6,250

0.8

6,480

OfficeOther Area

NRE Sapporo Building

Sapporo-shi, Hokkaido

4,140

0.5

4,250

OfficeOther Area

NOF Sendai Aoba-dori Building

Sendai City, Sendai

2,030

0.3

2,080

OfficeOther Area

NOF Utsunomiya Building

Utsunomiya City, Tochigi

2,320

0.3

2,250

OfficeOther Area

NOF Nagoya Fushimi Building

Nagoya-shi, Aichi

2,240

0.3

2,160

OfficeOther Area

NOF Nagoya Yanagibashi Building

Nagoya-shi, Aichi

2,280

0.3

2,280

OfficeOther Area

Omron Kyoto Center Building

Kyoto City, Kyoto

18,3002.3

18,300

OfficeOther Area

SORA Shin-Osaka 21

Osaka City, Osaka

12,1001.5

12,100

OfficeOther Area

NRE Osaka Building

Osaka City, Osaka

6,100

0.8

6,030

OfficeOther Area

NRE Nishi-Umeda Building

Osaka City, Osaka

3,450

0.4

3,450

OfficeOther Area

NRE Yotsubashi Building

Osaka City, Osaka

4,000

0.5

3,920

OfficeOther Area

NRE Hiroshima Building

Hiroshima City, Hiroshima

2,280

0.3

2,320

OfficeOther Area

NOF Hakata Ekimae Building

Fukuoka City, Fukuoka

4,210

0.5

4,280

OfficeOther Area

NOF Tenjin-Minami Building

Fukuoka City, Fukuoka

2,230

0.3

2,170

RetailTokyo Area

GEMS Ichigaya

Chiyoda-ku, Tokyo

2,080

0.3

2,130

RetailOther Area

Universal CityWalk Osaka

Osaka City, Osaka

15,5002.0

16,300RetailOther Area

Izumiya Senrioka

Suita City, Osaka

8,930

1.1

10,700RetailOther Area

Merad Owada

Osaka City, Osaka

6,640

0.8

7,270

RetailOther Area

Izumiya Yao

Yao City, Osaka

4,406

0.6

5,110

RetailOther Area

Izumiya Obayashi

Takarazuka City, Hyogo

3,020

0.4

3,650

RetailOther Area

Ichibancho stear

Sendai City, Miyagi

4,700

0.6

5,510

RetailOther Area

EQUINIA Aobadori

Sendai City, Miyagi

1,640

0.2

1,890

29

Portfolio (NMF) (ii)NameLocation

Acquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

sectorArea

Name

Location

Acquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

sector

Area

Logistics

Tokyo Area

Landport Urayasu

Urayasu City, Chiba

17,4002.2

20,100Residential

Tokyo Area

PROUD FLAT Shirokane Takanawa

Minato-ku, Tokyo

3,400

0.4

3,480

Logistics

Tokyo Area

Landport Itabashi

Itabashi Ward, Tokyo

15,7102.0

18,000Residential

Tokyo Area

PROUD FLAT Yoyogi Uehara

Shibuya-ku, Tokyo

989

0.1

1,010

Logistics

Tokyo Area

Landport Kawagoe

Kawagoe City, Saitama

13,7001.7

15,700Residential

Tokyo Area

PROUD FLAT Hatsudai

Shibuya-ku, Tokyo

713

0.1

729

Logistics

Tokyo Area

Landport Atsugi

Atsugi City, Kanagawa

11,4101.5

11,700Residential

Tokyo Area

PROUD FLAT Shibuya Sakuragaoka

Shibuya-ku, Tokyo

750

0.1

750

Logistics

Tokyo Area

Sagamihara Tana Logistics Center

Sagamihara City, Kanagawa

10,6001.4

11,900Residential

Tokyo Area

PROUD FLAT Gakugei Daigaku

Meguro-ku, Tokyo

746

0.1

762

Logistics

Tokyo Area

Sagamihara Onodai Logistics Center

Sagamihara City, Kanagawa

8,700

1.1

10,200Residential

Tokyo Area

PROUD FLAT Meguro Gyoninzaka

Meguro-ku, Tokyo

939

0.1

964

Logistics

Tokyo Area

Landport Hachioji

Hachioji City, Tokyo

8,250

1.1

9,350

Residential

Tokyo Area

PROUD FLAT Sumida Riverside

Chuo-ku, Tokyo

2,280

0.3

2,360

Logistics

Tokyo Area

Landport Kasukabe

Kasukabe City, Saitama

7,340

0.9

8,550

Residential

Tokyo Area

PROUD FLAT Kagurazaka

Shinjuku-ku, Tokyo

1,590

0.2

1,650

Logistics

Tokyo Area

Funabashi Logistics Center

Funabashi City, Chiba

4,660

0.6

5,440

Residential

Tokyo Area

PROUD FLAT Waseda

Shinjuku-ku, Tokyo

1,110

0.1

1,140

Logistics

Tokyo Area

Atsugi Minami Logistics Center B Tower

Atsugi City, Kanagawa

4,590

0.6

5,260

Residential

Tokyo Area

PROUD FLAT Shinjuku Kawadacho

Shinjuku-ku, Tokyo

947

0.1

888

Logistics

Tokyo Area

Hanyu Logistics Center

Hanyu City, Saitama

3,810

0.5

4,210

Residential

Tokyo Area

PROUD FLAT Sangen Jaya

Setagaya-ku, Tokyo

1,190

0.2

1,200

Logistics

Tokyo Area

Kawaguchi Logistics Center B Tower

Kawaguchi City, Saitama

3,750

0.5

4,410

Residential

Tokyo Area

PROUD FLAT Kamata

Ota-ku, Tokyo

1,160

0.1

1,180

Logistics

Tokyo Area

Kawaguchi Logistics Center A Tower

Kawaguchi City, Saitama

2,830

0.4

3,330

Residential

Tokyo Area

PROUD FLAT Kamata II

Ota-ku, Tokyo

3,320

0.4

3,390
621

Logistics

Tokyo Area

Atsugi Minami Logistics Center A Tower

Atsugi City, Kanagawa

2,690

0.3

3,220

Residential

Tokyo Area

PROUD FLAT Shinotsuka

Toshima-ku, Tokyo

623

0.1

Logistics

Tokyo Area

Kawaguchi Ryoke Logistics Center

Kawaguchi City, Saitama

10,7901.4

11,900Residential

Tokyo Area

PROUD FLAT Kiyosumi Shirakawa

Koto-ku, Tokyo

928

0.1

947

Logistics

Other Area

Ota Nitta Logistics Center

Ota City, Gunma

3,430

0.4

3,760

Residential

Tokyo Area

PROUD FLAT Monzen Nakacho II

Koto-ku, Tokyo

652

0.1

652

Logistics

Other Area

Ota Higashishinmachi Logistics Center

Ota City, Gunma

2,170

0.3

2,460

Residential

Tokyo Area

PROUD FLAT Monzen Nakacho I

Koto-ku, Tokyo

1,030

0.1

1,040

Logistics

Other Area

Ota Kiyohara Logistics Center

Ota City, Gunma

650

0.1

728

Residential

Tokyo Area

PROUD FLAT Fujimidai

Nerima-ku, Tokyo

1,470

0.2

1,530

Logistics

Other Area

Chiyodamachi Logistics Center

Oura-Gun, Gunma

330

0.0

368

Residential

Tokyo Area

PROUD FLAT Asakusa

Taito-ku, Tokyo

1,920

0.2

1,970

Logistics

Other Area

Hirakata Kuzuha Logistics Center

Hirakata City, Osaka

3,460

0.4

3,690

Residential

Tokyo Area

PROUD FLAT Yokohama

Yokohama-shi, Kanagawa

2,090

0.3

2,090

Residential

Tokyo Area

PROUD FLAT Kamioooka

Yokohama-shi, Kanagawa

2,710

0.3

2,710

Residential

Tokyo Area

PROUD FLAT Tsurumi II

Yokohama-shi, Kanagawa

1,650

0.2

1,690

Residential

Tokyo Area

PRIME URBAN Azabu Juban

Minato-ku, Tokyo

1,100

0.1

1,110

Residential

Tokyo Area

PRIME URBAN Akasaka

Minato-ku, Tokyo

938

0.1

939

Residential

Tokyo Area

PRIME URBAN Tamachi

Minato-ku, Tokyo

972

0.1

994

Residential

Tokyo Area

PRIME URBAN Shibaura

Minato-ku, Tokyo

1,830

0.2

1,890

Residential

Tokyo Area

PRIME URBAN Yoyogi

Shibuya-ku, Tokyo

359

0.0

362

Residential

Tokyo Area

PRIME URBAN Ebisu Ⅱ

Shibuya-ku, Tokyo

1,140

0.1

1,200
1,100

Residential

Tokyo Area

PRIME URBAN Bancho

Chiyoda-ku, Tokyo

1,090

0.1

Residential

Tokyo Area

PRIME URBAN Chiyoda Fujimi

Chiyoda-ku, Tokyo

679

0.1

685

Residential

Tokyo Area

PRIME URBAN Iidabashi

Chiyoda-ku, Tokyo

2,040

0.3

2,090

Residential

Tokyo Area

PRIME URBAN Ebisu

Meguro-ku, Tokyo

1,260

0.2

1,270

Residential

Tokyo Area

PRIME URBAN Naka Meguro

Meguro-ku, Tokyo

1,410

0.2

1,420

Residential

Tokyo Area

PRIME URBAN Gakugei Daigaku

Meguro-ku, Tokyo

775

0.1

789

Residential

Tokyo Area

PRIME URBAN Senzoku

Meguro-ku, Tokyo

474

0.1

475

Residential

Tokyo Area

PRIME URBAN Meguro Riverside

Meguro-ku, Tokyo

414

0.1

423

Residential

Tokyo Area

PRIME URBAN Meguro Ohashi Hills

Meguro-ku, Tokyo

2,970

0.4

2,870

Residential

Tokyo Area

PRIME URBAN Meguro Aobadai

Meguro-ku, Tokyo

1,310

0.2

1,360

Residential

Tokyo Area

PRIME URBAN Gakugei DaigakuⅡ

Meguro-ku, Tokyo

1,080

0.1

1,110

Residential

Tokyo Area

PRIME URBANNaka Meguro II

Meguro-ku, Tokyo

2,850

0.4

2,880

Residential

Tokyo Area

PRIME URBAN Kachidoki

Chuo-ku, Tokyo

2,570

0.3

2,580

Residential

Tokyo Area

PRIME URBAN Shinkawa

Chuo-ku, Tokyo

2,100

0.3

2,150

Residential

Tokyo Area

PRIME URBAN Nihonbashi Yokoyamacho

Chuo-ku, Tokyo

4,220

0.5

4,280
1,600

Residential

Tokyo Area

PRIME URBANNihonbashi Hamacho

Chuo-ku, Tokyo

1,550

0.2

Residential

Tokyo Area

PRIME URBAN Hongo Ikizaka

Bunkyo-ku, Tokyo

557

0.1

563

Residential

Tokyo Area

PRIME URBAN Hakusan

Bunkyo-ku, Tokyo

866

0.1

889

Residential

Tokyo Area

PRIME URBAN Yotsuya Gaien Higashi

Shinjuku-ku, Tokyo

1,490

0.2

1,520

Residential

Tokyo Area

PRIME URBAN Nishi Shinjuku I

Shinjuku-ku, Tokyo

1,090

0.1

1,110

Residential

Tokyo Area

PRIME URBAN Nishi Shinjuku II

Shinjuku-ku, Tokyo

885

0.1

905

Residential

Tokyo Area

PRIME URBAN Shinjuku Naitomachi

Shinjuku-ku, Tokyo

430

0.1

438

30

Portfolio (NMF) (iii)
sectorArea

Name

Location

Acquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

sectorArea

Name

Location

Acquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

Residential

Tokyo Area

PRIME URBAN Nishi Waseda

Shinjuku-ku, Tokyo

421

0.1

431

Residential

Tokyo Area

PRIME URBAN Gyotoku Ekimae

Ichikawa-shi, Chiba

488

0.1

490

Residential

Tokyo Area

PRIME URBAN Shinjuku Ochiai

Shinjuku-ku, Tokyo

594

0.1

604

Residential

Tokyo Area

PRIME URBAN Gyotoku EkimaeⅡ

Ichikawa-shi, Chiba

469

0.1

470
749

Residential

Tokyo Area

PRIME URBAN Mejiro

Shinjuku-ku, Tokyo

1,430

0.2

1,460

Residential

Tokyo Area

PRIME URBAN GyotokuⅢ

Ichikawa-shi, Chiba

747

0.1

Residential

Tokyo Area

PRIME URBANKagurazaka

Shinjuku-ku, Tokyo

2,900

0.4

2,920

Residential

Tokyo Area

PRIME URBAN Nishi Funabashi

Funabashi-shi, Chiba

761

0.1

772

Residential

Tokyo Area

PRIME URBAN Sangen JayaⅢ

Setagaya-ku, Tokyo

718

0.1

733

Residential

Tokyo Area

PRIME URBAN Kawaguchi

Kawaguchi-shi, Saitama

1,580

0.2

1,610

Residential

Tokyo Area

PRIME URBAN Chitose Karasuyama

Setagaya-ku, Tokyo

717

0.1

731

Residential

Tokyo Area

PROUD FLAT Hatchobori

Chuo-ku, Tokyo

920

0.1

952

Residential

Tokyo Area

PRIME URBAN Sangen Jaya

Setagaya-ku, Tokyo

724

0.1

740

Residential

Tokyo Area

PROUD FLAT Itabashi Honcho

Itabashi-ku, Tokyo

720

0.1

756

Residential

Tokyo Area

PRIME URBAN Minami Karasuyama

Setagaya-ku, Tokyo

667

0.1

678

Residential

Tokyo Area

PRIME URBAN Meguro Mita

Meguro-ku, Tokyo

1,058

0.1

1,080

Residential

Tokyo Area

PRIME URBAN Karasuyama Galleria

Setagaya-ku, Tokyo

549

0.1

551

Residential

Tokyo Area

PRIME URBAN Karasuyama Court

Setagaya-ku, Tokyo

338

0.0

343

Residential

Other Area

PROUD FLAT Itsutsubashi

Sendai-shi, Miyagi

652

0.1

664

Residential

Other Area

PROUD FLAT Kawaramachi

Sendai-shi, Miyagi

735

0.1

650
1,630

Residential

Tokyo Area

PRIME URBAN Chitose Funabashi

Setagaya-ku, Tokyo

746

0.1

756

Residential

Tokyo Area

PRIME URBAN Yoga

Setagaya-ku, Tokyo

1,390

0.2

1,450

Residential

Tokyo Area

PRIME URBAN Shinagawa Nishi

Shinagawa-ku, Tokyo

494

0.1

504

Residential

Tokyo Area

PRIME URBAN Osaki

Shinagawa-ku, Tokyo

1,860

0.2

1,900

Residential

Tokyo Area

PRIME URBAN Oimachi II

Shinagawa-ku, Tokyo

1,040

0.1

1,060

Residential

Tokyo Area

PRIME URBAN Yukigaya

Ota-ku, Tokyo

951

0.1

959

Residential

Tokyo Area

PRIME URBAN Omori

Ota-ku, Tokyo

905

0.1

922

Residential

Tokyo Area

PRIME URBAN Denenchofu Minami

Ota-ku, Tokyo

774

0.1

781

Residential

Tokyo Area

PRIME URBANNagahara Kamiikedai

Ota-ku, Tokyo

1,720

0.2

1,730

Residential

Tokyo Area

PRIME URBAN Nakano Kamitakada

Nakano-ku, Tokyo

498

0.1

508

Residential

Tokyo Area

PRIME URBAN Takaido

Suginami-ku, Tokyo

1,060

0.1

1,080

Residential

Tokyo Area

PRIME URBAN Nishi Ogikubo

Suginami-ku, Tokyo

414

0.1

423
1,810

Residential

Tokyo Area

PRIME URBAN Nishi OgikuboⅡ

Suginami-ku, Tokyo

1,790

0.2

Residential

Tokyo Area

PRIME URBAN Otsuka

Toshima-ku, Tokyo

730

0.1

745

Residential

Tokyo Area

PRIME URBAN Komagome

Toshima-ku, Tokyo

437

0.1

442

Residential

Tokyo Area

PRIME URBAN Ikebukuro

Toshima-ku, Tokyo

3,800

0.5

3,850

Residential

Tokyo Area

PRIME URBAN Monzen Nakacho

Koto-ku, Tokyo

2,420

0.3

2,470

Residential

Tokyo Area

PRIME URBAN Kameido

Koto-ku, Tokyo

779

0.1

794

Residential

Tokyo Area

PRIME URBAN Sumiyoshi

Koto-ku, Tokyo

632

0.1

639

Residential

Tokyo Area

PRIME URBAN Mukojima

Sumida-ku, Tokyo

528

0.1

530

Residential

Tokyo Area

PRIME URBAN Kinshi Koen

Sumida-ku, Tokyo

1,290

0.2

1,310

Residential

Tokyo Area

PRIME URBAN Kinshicho

Sumida-ku, Tokyo

758

0.1

773

Residential

Tokyo Area

PRIME URBAN Hirai

Edogawa-ku, Tokyo

722

0.1

737

Residential

Tokyo Area

PRIME URBAN Kasai

Edogawa-ku, Tokyo

640

0.1

641

Residential

Tokyo Area

PRIME URBAN Kasai II

Edogawa-ku, Tokyo

981

0.1

989

Residential

Tokyo Area

PRIME URBAN Kasai East

Edogawa-ku, Tokyo

1,140

0.1

1,160

Residential

Tokyo Area

PRIME URBAN Itabashi Kuyakushomae

Itabashi-ku, Tokyo

1,080

0.1

1,100

Residential

Tokyo Area

PRIME URBAN Asakusa

Taito-ku, Tokyo

384

0.0

393

Residential

Tokyo Area

PRIME URBAN Machiya South Court

Arakawa-ku, Tokyo

1,910

0.2

1,980

Residential

Tokyo Area

PRIME URBAN Musashi Koganei

Koganei-shi, Tokyo

1,910

0.2

1,910

Residential

Tokyo Area

PRIME URBAN Musashino Hills

Koganei-shi, Tokyo

1,280

0.2

1,280

Residential

Tokyo Area

PRIME URBANKoganei Honcho

Koganei-shi, Tokyo

791

0.1

807

Residential

Tokyo Area

PRIME URBAN Kumegawa

Higashimurayama-shi, Tokyo

1,520

0.2

1,530

Residential

Tokyo Area

PRIME URBAN Musashi Kosugi comodo

Kawasaki-shi, Kanagawa

1,940

0.2

2,000

Residential

Tokyo Area

PRIME URBAN Kawasaki

Kawasaki-shi, Kanagawa

962

0.1

986

Residential

Tokyo Area

PRIME URBAN Shinyurigaoka

Kawasaki-shi, Kanagawa

1,020

0.1

1,040

Residential

Tokyo Area

PRIME URBAN Tsurumi Teraya

Yokohama-shi, Kanagawa

493

0.1

495

Residential

Tokyo Area

PRIME URBAN Urayasu

Urayasu-shi, Chiba

804

0.1

826

Residential

Tokyo Area

PRIME URBAN Gyotoku I

Ichikawa-shi, Chiba

633

0.1

643

Residential

Tokyo Area

PRIME URBAN Gyotoku II

Ichikawa-shi, Chiba

730

0.1

750

Residential

Other Area

PROUD FLAT Shin Osaka

Osaka-shi, Osaka

1,620

0.2

Residential

Other Area

PRIME URBAN Kita Juyo Jo

Sapporo-shi, Hokkaido

274

0.0

277

Residential

Other Area

PRIME URBAN Odori Koen I

Sapporo-shi, Hokkaido

502

0.1

511

Residential

Other Area

PRIME URBAN Odori Koen II

Sapporo-shi, Hokkaido

334

0.0

340

Residential

Other Area

PRIME URBAN Kita Juichi Jo

Sapporo-shi, Hokkaido

547

0.1

557

Residential

Other Area

PRIME URBAN Miyanosawa

Sapporo-shi, Hokkaido

475

0.1

487

Residential

Other Area

PRIME URBAN Odori Higashi

Sapporo-shi, Hokkaido

394

0.1

398

Residential

Other Area

PRIME URBAN Chiji Kokan

Sapporo-shi, Hokkaido

249

0.0

254

Residential

Other Area

PRIME URBAN Maruyama

Sapporo-shi, Hokkaido

229

0.0

232
445

Residential

Other Area

PRIME URBAN Kita Nijuyo Jo

Sapporo-shi, Hokkaido

437

0.1

Residential

Other Area

PRIME URBAN Sapporo Idaimae

Sapporo-shi, Hokkaido

616

0.1

625

Residential

Other Area

PRIME URBAN Sapporo Riverfront

Sapporo-shi, Hokkaido

4,480

0.6

4,560

Residential

Other Area

PRIME URBAN Kita Sanjo Dori

Sapporo-shi, Hokkaido

1,730

0.2

1,780

Residential

Other Area

PRIME URBAN Nagamachi Icchome

Sendai-shi, Miyagi

1,140

0.1

1,010

Residential

Other Area

PRIME URBAN Yaotome Chuo

Sendai-shi, Miyagi

466

0.1

417

Residential

Other Area

PRIME URBAN Tsutsumidori Amamiya

Sendai-shi, Miyagi

949

0.1

843
724

Residential

Other Area

PRIME URBAN Aoi

Nagoya-shi, Aichi

712

0.1

Residential

Other Area

PRIME URBAN Kanayama

Nagoya-shi, Aichi

553

0.1

571

Residential

Other Area

PRIME URBAN Tsurumai

Nagoya-shi, Aichi

1,020

0.1

1,050

Residential

Other Area

PRIME URBANKamimaezu

Nagoya-shi, Aichi

1,590

0.2

1,610

Residential

Other Area

PRIME URBAN Izumi

Nagoya-shi, Aichi

3,770

0.5

3,870
657

Residential

Other Area

PRIME URBAN Esaka I

Suita-shi, Osaka

652

0.1

Residential

Other Area

PRIME URBAN Esaka II

Suita-shi, Osaka

794

0.1

809

Residential

Other Area

PRIME URBAN Esaka III

Suita-shi, Osaka

1,190

0.2

1,200

Residential

Other Area

PRIME URBANTamatsukuri

Osaka-shi, Osaka

1,020

0.1

1,040

Residential

Other Area

PRIME URBANSakaisuji Honmachi

Osaka-shi, Osaka

1,810

0.2

1,820
589

Residential

Other Area

PRIME URBAN Hakata

Fukuoka-shi, Fukuoka

588

0.1

Residential

Other Area

PRIME URBAN Yakuin Minami

Fukuoka-shi, Fukuoka

265

0.0

269

Residential

Other Area

PRIME URBAN Kashii

Fukuoka-shi, Fukuoka

398

0.1

326
515

Residential

Other Area

PRIME URBAN Hakata Higashi

Fukuoka-shi, Fukuoka

622

0.1

Residential

Other Area

PRIME URBAN Chihaya

Fukuoka-shi, Fukuoka

604

0.1

543

Residential

Other Area

PRIME URBAN Chikusa

Nagoya-shi, Aichi

1,110

0.1

1,130

Other

Tokyo Area

Ryotokuji University Shin-Urayasu Campus

4,900

0.6

5,090

Total

Urayasu-shi, Chiba

784,607

100.0

816,685

Office340,34443.4

343,443

Retail140,153

17.9

155,165

Logistics

136,270

17.4

154,276

Residential

162,940

20.8

164,931

Other

4,900

0.6

5,090

31

Portfolio (TOP)sectorArea

OfficeOfficeAcquisition Price

Ratio

Appraisal Value(Millions Of Yen)(％)

(Millions Of Yen)

Name

Location

Tokyo Area

NEC Head Office Building

Minato-ku, Tokyo

41,95022.0

54,500Tokyo Area

Harumi Island Triton Square Office Tower Y

Chuo-ku, Tokyo

33,00017.3

27,200

OfficeTokyo Area

Harumi Island Triton Square Office Tower Z

Chuo-ku, Tokyo

20,00010.5

12,300

OfficeTokyo Area

Kanda Nishiki-cho 3-chome Building

Chiyoda-ku, Tokyo

12,7006.7

8,430

OfficeTokyo Area

Akasaka Oji Building

Minato-ku, Tokyo

9,660

5.1

9,610

OfficeTokyo Area

Shiba-Koen Building

Minato-ku, Tokyo

6,145

3.2

4,260

OfficeTokyo Area

Shinjuku EAST Building

Shinjuku-ku, Tokyo

5,800

3.0

6,690

OfficeTokyo Area

Shinkawa Chuo Building

Chuo-ku, Tokyo

5,610

2.9

6,310

OfficeTokyo Area

Ginza Oji Building

Chuo-ku, Tokyo

2,000

1.0

2,160

OfficeTokyo Area

Faret East Building

Tachikawa-shi, Tokyo

2,091

1.1

2,720

RetailTokyo Area

Sagamihara Shopping Center

Sagamihara-shi, Kanagawa

12,000

6.3

9,070

RetailTokyo Area

Ito-Yokado Higashi-Narashino Store

Narashino-shi, Chiba

8,900

4.7

3,990

RetailTokyo Area

Kojima×Bic Camera Kashiwa Store

Kashiwa-shi, Chiba

4,500

2.4

4,930

RetailTokyo Area

Musashiurawa Shopping Square

Saitama-shi, Saitama

4,335

2.3

4,140

RetailOther Area

MEL Building

Sendai-shi, Miyagi

1,210

0.6

1,340

Residential

Tokyo Area

TOP Residence Nihonbashi KayabachoChuo-ku, Tokyo

2,400

1.3

2,860

Residential

Tokyo Area

Fukasawa House Towers H&I

Setagaya-ku, Tokyo

10,635

5.6

7,810

Residential

Tokyo Area

Ecology Toyosu Procentury

Koto-ku, Tokyo

5,160

2.7

5,500

Residential

Tokyo Area

Impress Musashi-Koganei

Koganei-shi,Tokyo

1,223

0.6

1,370

Residential

Tokyo Area

TOP Residence Yoga

Setagaya-ku, Tokyo

1,165

0.6

1,300

Total

190,484

100.0

176,490

Office138,95672.9

134,180

Retail30,94516.2

23,470Logistics---

Residential

20,58310.8

18,840

-

-

-

Other

Note 1：
Note 2：
Note 3：Note 4：

The above table indicates a list of the assets held by TOP as of May 26, 2016. By the effective date of Merger, it is scheduled that NMF will acquire the property of Landport Kashiwa Shonan II and that TOP will sell the Kojima×Bic Camera Kashiwa Store.
The acquisition price indicates the acquisition price for which each investment corporation acquired.
The investment ratio indicates the ratio to the total acquisition price.
Regarding the appraisal values, the values as of the end of the most recently published fiscal period (NMF: the end of February 2016, and TOP: the end of October 2015) are indicated, which are not equivalent to the estimated acquisition amount for theassets to be succeeded by NMF. With respect to the assets that were obtained on and after the end of the latest fiscal period, the values are indicated as the appraisal values as of the acquisition.

32

This document has been prepared for information purpose only, and should not be construed as an offer, solicitationor commercial conduct of any nature associated with any specific products. Investors wishing to purchase theinvestment units of each investment corporation should contact their own securities brokers or dealers. A fee may becharged by your financial instruments business operator in relation to the sale or purchase of investment units.
For management fees that each investment corporation pays to its asset management company, please refer to the
Articles of Incorporation of each investment corporation.
The forward-looking statements with respect to the future financial results contained in this document are based on
the current investment policy of each investment corporation, applicable laws and regulations, the market
environment, business practice, and other factual background and assumptions as of the preparation date of thisdocument and do not reflect or consider any changes in the circumstances after the preparation date. These forwardlooking statements inherently reflect uncertainty about known risks as well as unknown risks and other factors andmay deviate from the actual operating and management results, financial conditions, etc., of each investment
corporation.
Investment in real estate investment securities may result in a loss due to a decline in the transaction price causedby, for example, changes in the price or the revenue-generating capability of the underlying properties ordeterioration of the financial conditions of the issuer.
Although the information contained in this document is intended to be complete and accurate, there is no assuranceof the same. Please note that the content of this document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information
contained in this document without our express prior consent.

Inquiries:
Nomura Real Estate Asset Management Co., Ltd.
Fund Management Department, NMF Investment Management Group
TEL. +81-3-3365-8767

Inquiries:
Top REIT Asset Management Co., Ltd.
Investors Relations, Treasury Department
TEL. +81-3-3243-2181