NOMURA MASTER FUND
3285

1 st

Analyst Meeting Presentation Material

Contents
1. Investment Highlights

・Features of Nomura Real Estate Master Fund, Inc.
・IPO Highlights

4. APPENDIX
23

2. 1st Fiscal Period Overview

・1st Fiscal Period Financial Overview
・1st Fiscal Period Performance
・Portfolio Data
・Overview of Owned Properties
・Management Status of Portfolio・Appraisal Value Status (1st Fiscal Period)
・Financial Status

5
6
7
8～9
10
11
12

3. Investment Management Strategy

・Path to Growth・Image of Growth Strategy
・External Growth Strategy
・Overview of Property Acquired After the 1st Fiscal Period
・Future Distribution Level

14
15
16
17
18

・Income Statement
・Balance Sheet・Forecasts for the 2nd and 3rd Fiscal Period
・Portfolio List
・Portfolio Map
・Unitholders (at end of 1st Fiscal Period)
・Tenant Status (at end of 1st Fiscal Period)
・Logistics Facilities Environment
・Retail Facilities Environment
・Overview of Nomura Master Fund
・Overview of the Asset Management Company

20
21
22
23
24
25
26
27
28
29
30

Investment Highlights

1Features of Nomura Real Estate Master Fund, Inc.

Management Strategy

Investment Strategy

Financial Strategy• Long-term issuer rating• Generation of stable cash flow backed bylong lease periods• Investment centering on greater Tokyo area
(at least 80% in principle) emphasizing
population density that will support
consumption

Greater Tokyo area:

83.9％

Ratio of contracts of
10 years or more:

71.3%• Maintenance of high occupancy rate
through management skills backed by
the management experience of the AssetManagement Company

Portfolio occupancy rate:

Japan Credit Rating
Agency, Ltd. (JCR):AA -• Diversification of repayment dates

Average duration:

4.8 years• Financial management that takes stability
into consideration

99.8%
LTV:

31.1%

Utilization of the Nomura Real Estate Group’s value chain
Ability to plan, Develop and manage logistics facilities and retail facilities
Development of the “Landport” series logistics facilities and“GEMS” series retail facilities⇒ Utilization of sponsor’s pipeline support

Nomura Real Estate Group’s logistics and retail facilities
management and operation performance⇒ Utilization of strong leasing abilities and building
management abilities(Note) Figures are based on information as of the end of the 1st fiscal period (August 31, 2013).

2

IPO Highlights
Status of incorporation into indicesOverview of offering

Form of offering

Global offering
Domestic primary offering andinternational offering (Reg S+144A）

Listing dateJune 12, 2013

Issue price

100,000 yen

Date of incorporation

FTSE EPRA/NA-REIT
Global Real Estate Index

June 24, 2013

TSE REIT Index

July 31, 2013

Trading status after listing(units)Number of investment
units issued

1,663,260 units

Procured amount

160.9 billion yen

Domestic / international ratio

Name of index

78.9 % / 21.1 %Listed with the largest IPO
in the history of J-REITs

130

250,000

120

200,000

110

150,000

100

100,000

90

50,00080
2013/06

2013/072013/08
Trading volume (units)

2013/09
NMF

0
2013/10TSE REIT Index(Note) Indexed with the closing price of listing date as 100.

3

1st Fiscal Period Overview

4

1st Fiscal Period Financial Overview
Performance of the 1st fiscal period and previous forecast
1st Period(ended Aug. 31, 2013)

1st Period Forecasts(announced on Jun. 17, 2013)

Decrease / Increase(comparison)

Operating Revenues¥3,683 million¥3,598 million+\85million

2.4%• Began operation on June 13,
2013 (80operating days)

Operating Profits¥2,089 million¥2,027 million+\62million

3.0%• Decrease in organization
expenses and listing- andoffering-related expenses(-110 million yen)

Ordinary Income¥1,253 million¥1,041 million+\211million

20.3%• Decrease in interest expenses(-35 million yen)

Net Income¥1,251 million¥1,040 million+\211million

20.2%• Decrease in asset
management fees(-25 million yen)

Cash Distribution
per Unit¥751 /unit¥625 /unit+\126million

20.2%

Total Assets¥252,265 million- million－－

Interest-Bearing Debt

¥78,478 million- million

－

－

LTV

31.1 %

-%

－

－

5

1st Fiscal Period Performance
Investment

Management

・ Retail

18 properties ¥122.0 billion[Occupancy rate and average rent](%)

36 properties ¥105.5 billion[1st FP portfolio (54 properties)](¥/tsubo)

101

6,000

100

5,500

99

5,000

Asset size:

¥227.6 billion

98

4,500

NOI yield of portfolio

:

6.7 %

97

4,000

96

3,500

95

3,000

Average building age:

 Acquisition of credit rating

 Continuation of stable management

 Acquisition of 54 properties
・ Logistics

Finance13.3 years

June

July

Occupancy rate

[Diversification by region]

5.7%

Total

10.5%

GreaterTokyo area

LT issuerratingOutlook

JCR

AA-

Stable Borrowings of ¥78.5billion• Implemented borrowings on June 13, July 18
and July 30

AugustAverage reng (right axis)• Maximum borrowing term of 12 years[Period-end OR] [Period-end AR]:
99.8 %¥5,149/tsubo

Ave. duration:

4.8 years

Logistics :100.0 %

¥3,707/tsubo

Ave. IR:

0.99 %

Retail99.4 %¥8,312/tsubo

LTV:

31.1 %:

 Increase of appraisal value

83.9 %

Rating Agency

 Concluded commitment line agreement
Commitment line agreement : ¥10 bln.

Total appraisal value

83.9%
Greater Tokyo area

Kinki area

Total Book value:¥239.3 billion:¥229.4 billion

Unrealized gain/loss :+ ¥9.8 billion

Commitment period: 1 year

Others

Focused investment in greater Tokyo area＋

Maintained a high occupancy rate＋

Conservative financial strategy

Stable Income Return
6

Portfolio Data(as of August 31, 2013)
Portfolio building age

Incorporation by use

Diversification by region
5.7%

17.0%

20.9%

10.5%

Retail : Logi.

GreaterTokyo area

46.4% : 53.6%

83.9 %

46.1%

Average age

53.6%

13.3 years

25.5%

36.9%

83.9%
Greater Tokyo area

Kinki area

Others

Logistics

Retail (station)

Lease term(based on leased floor space)
8.4%
19.9%

12.2 years
71.3%

5 to 10 years

Less than 5 years

Lease term remaining(based on leased floor space)
17.0%

Averagelease term

10 years or more

Retail (residential)

23.1%

Averageremaininglease term

29.9% 6.6 years
30.0%

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

7Overview of Owned Properties
Logistics facilities
Industry trends

Tenant trends• The size of the retail market in the electronic commerce market
continues to be on an expansionary trend with a yoy increase of
11.3% in 2012.
Along with this, the number of parcels handled by expressdelivery operators is trending upward with a yoy increase of 3.7%
in 2012 (see page 27).
• As Sagawa Express discontinued delivery of unprofitable items
for emphasis on profit, deliveries are relatively concentrating at
Yamato HD, Fukuyama Transporting and Seino HD.
• Fukuyama Transporting and Seino HD announced a businessalliance in May 2013 and there are signs of a change in the
structure of the industry.

• In fiscal 2012, Amazon Japan’s sales saw a 15.5% yoy increase.
The company’s largest Japanese logistics facility of over 60,000
tsubo in Odawara, Kanagawa began full-fledged operation in
September 2013.
• ASKUL saw the earnings of its BtoB business targeting existing
companies increase, and the sales plan of its new joint businesswith Yahoo! targeting individuals (LOHACO) is expected to be
exceeded.
• Otsuka HD increased its earnings with an increase of sales ofantipsychotic drugs in the U.S., while in September it announced
that it will acquire Astex Pharmaceuticals which has its strengths
in the development of small-molecule drugs.

Diversification of single andmultiple tenants

Tenant use

Consumer
20.8%

Single tenant
13 properties
55.3%

Multiple tenant
5 properties
44.7%

３ＰＬ
42.2%

Own use37.0%

Diversification by size

Less than
20,000㎡
5 properties

20,000㎡ to29,999㎡
4 properties

50,000㎡ or
more
4 properties

30,000㎡ to49,999㎡
5 properties(Note) All pie charts indicate ratios based on leased floor space,8

Overview of Owned Properties
Retail (station area)

Retail (residential area)

Industry trends

Industry trends• Sales of the top 100 shops in the food and beverage industry infiscal 2012 increased by 3.7% yoy (Note 1).
• Turnover of tutoring and preparatory schools increased 4.4%
yoy in 2012 as the employment difficulties became a motivating
factor for investment in education (Note 1).

• In the supermarket industry, sales of clothing items had beensluggish due to the impact of unfavorable weather conditions,however, sales of food and beverages, the core products, arestrong as consumers are preferring to eat at home.

Tenant trends

Tenant trends• Sales of Morisia Tsudanuma has continued its upward trend
since the large-scale renewal in 2008.

• Yokohama Okadaya is performing well as its flagship store,
Yokosuka More’s City, is popular with locals as the no. 1 local
shop.

Morisia Tsudanuma (change in monthly sales) (Note 2)

Yokosuka More’s (change in monthly sales) (Note 2)

150

160

140

140

130

120

120
110

100
80
60

100
90
80

40
20
0

(Note 1) Nikkei MJ (logistics newspaper) dated November 14, 2012 and May 22, 2013. (Note 2) Indexed with April 2008 as 100.

9

Management Status of Portfolio
Tenant diversification (based on leased floor space)
Mitsui-Soko Logistics
Undisclosed

Total number of tenants

241 tenants

Total leased floor space

888,992.03㎡

ASKUL
Fukuyama Transporting
Otsuka Warehouse

Area
ratio

10.4%

7.9%

6.3%

5.7%

4.9%

Izumiya

4.8% 4.6% 4.2% 3.9% 3.9%

43.4%

Yokohama Okadaya
Shinkai Transport Systems

Caterpillar Logistics Services

Other

Amazon Japan Logistics

Diversification of lease maturity (based on rent)
福山通運
キャタピラー・ロジスティクス・サービセス

イズミヤ
横浜岡田屋

アマゾンジャパン・ロジスティクス
三井倉庫ロジスティクス

15.0%

10.0%
6.6%
1.2%

1.9%

5.0%

0.1%

9.2%
2.3%

5.0%
1.0%

4.5%

4.7%

4.2%
1.2%

0.0%
FP2
2014/2

FP3
2014/8FP4
2015/2FP5
2015/8

FP6
2016/2

Logistics

0.3%

6.5%
3.0%

Retail

0.8%

FP7
2016/80.8%
FP82017/2

5.8%

6.7%
4.7%

3.8%
1.6%

FP9
2017/8FP10
2018/2

FP11
2018/8FP12
2019/2

FP13
2019/8

1.9%

0.1%

FP14
2020/2FP15
2020/8FP162021/2FP172021/8

0.2%

0.2%

0.2%

FP18
2022/2FP19
2022/8FP202023/2FP21
2023/810

Appraisal Value Status (1st Fiscal Period End)
Status as of the end of 1st FP
Appraisal atacquisition

Total appraisal value¥239.3 billion

Total book value¥229.4 billion

Appraisal value¥234.4 billion¥239.3 billion

2.1%

Unrealized gain / loss

+ ¥9.8 billion

Logistics¥125.1 billion¥128.0 billion

2.3%

Retail(excluding land)¥93.5 billion¥95.5 billion

2.2%

Retail(land)¥15.7 billion¥15.7 billion

0.0%<Reference>
Unrealized gain/loss per unit:

+ ¥ 5,907

Net asset per unit:

¥ 97,505

NAV per unit:

¥ 103,412

End of 1st period Comparison

Change in total appraisal value and cap rate
Logistics(¥ mln)Retail (excluding land)(¥ mln)129,000

96,000+¥2,881million

127,000
5.90%

125,000

18,000+¥2,020 million

6.10%

5.90%
92,0005.50%

90,000

±0.0%

6.10%

94,0005.70%

Retail (land)(¥ mln)

▲0.1%

6.10%

+¥4 million

16,000

5.90%

5.70%

14,0005.50%

12,000

5.70%

▲0.1%

123,000

At acquisition

Appraisal value
Increase
Unchanged
Decrease

170
1

1st period

At acquisition

Cap rate
Decrease
Flat
Increase

Appraisal value
1800Increase
Unchanged
Decrease

18
10

1st period

Appraisal value

Cap rate
Decrease
Flat
Increase

5.50%

At acquisition

16
2
1

Increase
Unchanged
Decrease

510
2

1st period

Cap rate
Decrease
Flat
Increase

0
17
0

11

Financial Status
Interest-bearing liabilities

Bank formation(¥ bln)Financial institution

Total Interestbearing liabilities

Average interest rate
0.99 %¥78.4 billion

Ratio of long-term
debt

Ratio of fixed-rate
debt

78.9 %

79.0 %The Bank of TokyoMitsubishi UFJ, Ltd.

19.9

Sumitomo Mitsui Trust Bank,
Ltd.

5.8

Sumitomo Mitsui Banking
Corporation

19.9

The Norinchukin Bank

5.8

Mizuho Bank, Ltd.

13.5

Development Bank of Japan

3.8

5.8

Mizuho Trust & Banking Co.,
Ltd.

3.8

Total Debt

78.4

Mitsubishi UFJ Trust andBanking Corporation* Including fixed interest by IR swap

LTV

Average remaining
duration

Diversification of repayment dates(loan-to-value)

4.82 years

31.1 %(¥ bln)
25
20

16.5
13.0

15

12.2

10.0

10.8

10

Credit ratings

9.0
5.0

5

0.9
0

Rating agency

LT issuer rating

OutlookJCR

AA -Stable2nd
Period4th
Period6th
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Investment Management Strategy

13

Path to Growth

Realizing

Enhance investment
unit priceInvestment strategy

Secure stable income

Management strategy• Set mid-term asset size target

Based on long-term lease contracts,• Construct a stable portfolio• Maintain high occupancy rate

• Expand outside acquisition routs• Maintain and improve rent level

Maximize real estate
value

Financial strategy• Establish stable financial base
• Oversee finance along the market

Aim for stable distributions based on explicit concepts

14Image of Growth Strategy
Mid-term asset size target

15External Growth Strategy
Locations of properties owned

Investment target• Invest with greater Tokyo area as core (at least 80% in principle)with strong demand• Acquire competitive properties no older than 10 years

SectorYield target

Comments

Logistics

5.0% ～ 6.0%

High-functioning logistics facilities incompetitive locations with quality specs
regardless of size

Retail(residential area)

5.0% ～ 6.0%

NSC centering on food supermarkets with
dense population areas

Retail(station area)

Around 4.5%

Retail buildings (services, sales andrestaurants) near train stations in areas ofcommercial accumulation: Logistics: Retail

16

Overview of Property Acquired After the 1st Fiscal Period
Recipe SHIMOKITA

Retail(station area)

Overview of property
Completion

July 2011 (2 years)

Location

Kitazawa, Setagaya-ku, Tokyo

Nearest station

Approx. 1-minute walk from Shimokitazawa station(Odakyu Odawara Line, Keio Inokashira Line)

Scheduled date of acquisition

December 13, 2013

Agreement date

September 30, 2013

Acquisition price¥10,407 million

Estimated NOI yield

4.4%

Total leasable floor space

6,295.22㎡ (1,904.30 tsubo)

Occupancy rate

99.5% (September 30)<MAP><Key evaluation points>• Excellent location a 1-minute walk from
Shimokitazawa Station on the Odakyu
Odawara and Keio Inokashira lines• Further enhancement of the ratio ofinvestment in greater Tokyo area
• Completed in 2011, the property is new

Recipe SHIMOKITA<Portfolio status>
Greater Tokyo area

Average age

84.6% (+0.7%)

12.9 y(-0.5 y)* Based on acquisition price* As of Sep. 30, 201317

Future Distribution Level
Forecasts for the 2nd and 3rd fiscal periods
1st Period(ended Aug. 31, 2013)

2nd Period Forecasts(w ill end Feb. 28, 2014)

Operating Revenues¥3,683 million¥9,099 million

147.1%¥9,250 million

1.7%

Operating Profits¥2,089 million¥5,168 million

147.3%¥4,561 million-11.7%Net Income¥1,251 million¥4,629 million

269.9%¥3,963 million-14.4%Cash Distribution
per Unit¥751 /unit¥2,780 /unit+¥2,029¥2,380 /unit-¥400(Comparison)

3rd Period Forecasts(w ill end Aug. 31, 2014)(Comparison)(Note) Forecasts of distributions for the periods ending February 28, 2014 and August 31, 2014 are based on Nomura Master Fund’s summary of financial results dated October 15, 2013 and maychange 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, theabove forecasts do not guarantee the amounts of distributions.

Change in distributions
Ongoing basis(¥ / unit)

3,000

+¥325
+¥1,684

2,500(forecast)+¥20
・Acquisition of
Recipe SHIMOKITA

2,000¥2,780+¥46▲¥ 430¥2,380・Full-period operation of
Recipe SHIMOKITA
・Amount equivalent
to IPO expenses
・Other▲¥ 16
・Expensing of fixed
asset / city planningtax(forecast)・Other

1,500

1,000

¥751
・Full-period
operation of 54
properties

500

0

1st FP
Cash Distribution

2nd FP
Cash Distribution

3rd FP
Cash Distribution

18

ＡＰＰＥＮＤＩＸ

19

Income Statement

Operating revenue
Real estate rental revenues*1

Rental revenues
Other rental revenues

1st FP Forecast

1st Fiscal Period

From Jan. 31, 2013

From Jan. 31, 2013

Difference fromforecast

To Aug. 31, 2013
Amount(￥000)
3,598,397

To Aug. 31, 2013
Amount(￥000)
3,683,130(1st FP actual - 1st FP forecast)Difference
Difference(￥000)
Ratio (%)
84,733
2.4

3,598,397

3,683,130

84,733

2.4

3,394,934

3,392,015-2,918-0.1

203,463

291,11487,651

43.1

19,23334,57815,345

79.8

Incidental income*2184,230

253,525

69,295

37.6

Other miscellaneous revenues*3

1,570,565

3,010

3,010

1,593,500

22,9351.5

1,189,737

1,258,501

68,764

5.8

Parking revenues

Operating expense
Real estate rental expenses*1

Repairs and maintenance

31,085

58,10427,01986.9

Depreciation

684,866

698,512

13,646

2.0

Other rental expenses

473,786

501,883

28,0975.9

303,072

277,764-25,307-8.4

77,75657,235-20,520-26.4

2,027,832

2,089,629

61,7973.0893

Non-operating expenses

985,959893
837,317-148,641-15.1Interest expenses

179,947

144,738-35,208-19.6

Investment units issuance costs

379,000

293,249-85,750-22.6

Other offering costs associated with the issuance of investment units

154,006

149,006-4,999-3.2

Organization expenses

120,000

100,000-20,000-16.7

153,006

150,323-2,682-1.8

Ordinary income

1,041,873

1,253,205

211,332

20.3

Income before income taxes

1,041,873

1,253,205

211,332

20.3

1,000

1,654

654

65.5

1,040,873

1,251,550

210,677

20.2

Retained earnings brought forw ard

-

-

0

-

Retained earnings at end of period

1,040,873

1,251,550

210,677

20.2

Total cash distribution

1,040,787

1,250,610

209,822

20.2%

Asset management fees
Other operating expenses*4

Operating profit
Non-operating revenues

Other non-operating expenses

Income tax, etc.
Net income*5*Reference [1st Fiscal Period]
1. Real estate rental business revenues: ¥2,424,629 thousand

2. Incidental revenues
2. Utility Charges:¥218,916 thousand

4. Other operating expenses
6．Asset custody fee
6．Directors fee, etc.

::

¥3,992 thousand¥5,600 thousand

5. Other non-operating expenses
7．Loan related expense, etc.

:

¥147,198 thousand(reference) Renovation expenses
4．Repair expenses
4．Capital expenditure
Total

:
:
:

¥58,104 thousand¥24,825 thousand¥82,930 thousand(11.9% of depreciation)

3. Other real estate rental revenues
Cancellation penalties, etc.

*Figures are rounded down to the nearest thousand.

20Balance Sheet
Liabilities and net assets

AssetsCurrent assets

1st Fiscal Period

1st Fiscal Period

as of Aug. 31, 2013

as of Aug. 31, 2013

AmountRatio(￥000)
21,561,011

(%)
8.5

Cash and bank deposits

5,054,509

2.0Cash and bank deposits in trust

11,405,579

4.5

Other current assets

5,100,922

2.0

230,704,391

91.5

225,667,946

89.5

3,542,982

1.4

Buildings

1,102,648

0.4

Land

2,440,333

1.0Real estate in trust

222,124,964

88.1

Buildings in trust

93,420,419

37.0Land in trust

128,704,544

51.0

3,832,815

1.5

3,821,371

1.5

Noncurrent assets
Property and equipment*1

Real estate

Intangible assets
Leasehold rights in trust
Other

Amount(￥000)
19,327,922

Current Liabilities
Trade accounts payable

Ratio
(%)
7.7

262,587

0.1

Short-term debt

*2

16,500,000

6.5

Current portion of long-term debt

*2

85,6000.0

1,085,077

0.4

Accrued income taxes

1,522

0.0

Accrued expenses

10,6570.0

1,335,425

0.5

Other accounts payable

Rent received in advance
Other current liabilities
Fixed Liabilities
Long-term debt

*2

Security deposits from tenants

47,0500.0

70,565,524

28.0

61,893,000

24.5

167,762

0.1

Security deposits from tenants in trust

8,504,761

3.4

Total liabilities

89,893,446

35.6

162,371,955

64.4
63.9

11,4440.0

Investment and other assets

1,203,629

0.5

Security deposits

515,926

0.2

Unitholders capital

161,120,405

Long-term prepaid expenses

648,601

0.3

Retained earnings

1,251,550

0.5

Other

39,101

0.0

Total net assets

162,371,955

64.4

252,265,402

100.0

Total liabilities and net assets

252,265,402

100.0

Total assets*1 Property and equipment

Real estate, etc.
Buildings
Land
Buildings in trust
Land in trust(unit : million of yen)
AcqisitionPrice

Accumulated
Depreciation(Depreciation for
current FP)

Book value
at FP end

226,366
1,109
2,440
94,112
128,704

698
6
－
692
－

(698)
(6)
－
(692)
－

225,667
1,102
2,440
93,420128,704

Unitholders equity*2 Debt (long-term debt due whithin a year are included in the short-term debt)
Balance of interest-bearing debt (millions of yen)

78,478

Total asset interest-bearing debt ratio

Short-term debt＋Long-term debt
Total assets

31.1%

Long-term interest-bearing debt ratio

Long-term debt
Short-term debt＋Long-term debt

78.9%

21

Forecasts for the 2nd and 3rd Fiscal Period

Operating revenue
Real estate rental business revenues
Operating expense
Real estate rental expenses
Repairs and maintenanceTax and public dues

1st Result

2nd FP Forecast

3rd FP Forecast

From Jan. 31, 2013

From Sep. 1, 2013

From Mar. 1, 2014

Difference(2nd FP - 1st FP)

Difference(3rd FP - 2nd FP)

To Aug. 31, 2013
Amount(millions of yen)
3,683

To Feb. 28, 2014
Amount(millions of yen)
9,099

To Aug. 31, 2014
Amount(millions of yen)
9,250

Amount(millions of yen)
5,416

Amount(millions of yen)
150

3,683

9,099

9,250

5,416

Assumptions【Properties】
Number of properties：

Total amount of acquisition price：¥238,023 million：¥20 million

150

1,593

3,931

4,688

2,338

756

1,258

2,976

3,689

1,718

712

58

277

185

218

-91

55 properties【Repair expenses 】\421 million for 2nd fiscal period(\144 million of which is capital expenditure)

-

-

732

-

732

698

1,493

1,532

795

38

Morisia Tsudanuma(Installation of automatic door on 1st floor)

Asset management fees

277

750

807

472

56

Morisia Tsudanuma(Renewal of the entrance door on west side of 2nd floor)¥20 million

Other operating expenses

57

204

191

147

-12

Funabashi Logistics Center(Leakage control on the wall surface)¥20 million

2,089

5,168

4,561

3,078

-606

836

537

597

-299

59

291

529

593

237

63

Ordinary income

1,253

4,630

3,964

3,377

-665

Example)Net income

1,251

4,629

3,963

3,378

-665

Izumiya Obayashi(Seismic strengthening)：¥283 million

covirna machida(Renewal of the air-conditining system)：¥175 million：¥78,478 million

Repayment through loans (-)：¥0 million

Agreed repayment (Nov. 2013,Feb. 2014)：¥42 million

Repayment through loans (May 2014)：¥16,500 million

Agreed repayment (May 2014,Aug. 2014)：¥42 million

Depreciation

Operating profits
Non-operating expenses
Interest expenses,loan related expenses

Number of investment units issued(units)1,665,260

1,665,260

1,665,260--

Cash distribution per unit

(yen)

751

2,780

2,380

2,029

-400

54

55

55

1

-

Number of properties

Example)\849 million for 3rd Fiscal Period(\663 million of which is capital expenditure)【Loans】
Total Interest-bearing debt
(as of Aug. 31, 2013)

Interest-bearing debt repayment due during 2nd FP

Interest-bearing debt repayment due during 3rd FP

22

Portfolio List
Type

Area

Location

AcquisitionPrice(in millions)

Landport Urayasu

Urayasu City, Chiba

17,4007.6

18,20070,045.85

100.0

4.61

Landport Itabashi

Itabashi-ku, Tokyo

15,7106.9

16,50052,794.55

100.0

6.17

Landport Kawagoe

Kawagoe City, Saitama

13,7006.0

13,90071,569.89

100.0

Landport Atsugi

Atsugi City, Kanagawa

11,4105.0

12,00047,995.23

100.0

Sagamihara Tana Logistics Center

Property name

Investment
Rate
(%)

AppraisalValue(in millions)Leasable Space(㎡)

Occupancy
Rate(%)

Location

AcquisitionPrice(in millions)

Morisia Tsudanuma

Narashino City, Chiba

16,6007.3

17,20039,301.49

97.2

5.93

Yokosuka More’s City

Yokosuka City, Kanagawa

13,6406.0

14,20029,383.65

100.0

12.79

4.85

EQUINIA Shinjuku

Shinjuku-ku, Tokyo

4,260

1.9

4,330

3,611.57

81.2

7.5

10.06

Kawasaki More’s

Kawasaki City, Kanagawa

4,000

1.8

4,220

14,446.48

100.0

11.24

PML
(%)

Type

Area

Property name

Investment
Rate
(%)

AppraisalValue(in millions)Leasable Space(㎡)

Occupancy
Rate
(%)

PML
(%)

4.7

11,10050,450.00

100.0

4.92

EQUINA Ikebukuro

Toshima-ku, Tokyo

3,990

1.8

4,140

2,701.66

99.7

10.82

8,700

3.8

9,180

57,448.03

100.0

12.96

covirna machida

Machida City, Tokyo

3,440

1.5

3,780

2,891.32

100.0

14.8

Landport Hachioji

Hachioji City, Tokyo

8,250

3.6

8,690

34,896.32

100.0

11.29

Nitori Makuhari

Chiba City, Chiba

3,080

1.4

3,310

14,367.98

100.0

5.93

Landport Kasukabe

Kasukabe City, Saitama

7,340

3.2

7,560

29,630.48

100.0

7.33

Konami Sports Club Fuchu

Fuchu City, Tokyo

2,730

1.2

2,990

12,385.18

100.0

2.4

Funabashi Logistics Center

Funabashi City, Chiba

4,660

2.0

4,840

30,641.98

100.0

5.24

FESTA SQUARE

Saitama City, Saitama

2,600

1.1

2,810

7,480.63

100.0

6.36

Atsugi Minami Logistics Center B Tow er

Atsugi City, Kanagawa

4,590

2.0

4,750

24,909.96

100.0

12.38

GEMS Shibuya

Shibuya-ku, Tokyo

2,490

1.1

2,500

1,791.34

100.0

1.81

Hanyu Logistics Center

Hanyu City, Saitama

3,810

1.7

4,180

24,850.80

100.0

5.15

Sundai Azamino

Yokohama City, Kanagawa

1,700

0.7

1,760

2,286.47

100.0

6.93

Kawaguchi Logistics Center B Tower Kawaguchi City, Saitama

3,750

1.6

4,070

13,648.70

100.0

5.05

EQUINIA Aobadai

Yokohama City, Kanagawa

1,560

0.7

1,690

2,457.36

98.6

9.91

Kawaguchi Logistics Center A Tower Kawaguchi City, Saitama

2,830

1.2

3,030

12,003.57

100.0

6.32

Megalos Kanagawa

Yokohama City, Kanagawa

1,000

0.4

1,190

6,217.85

100.0

11.24

Izumiya Senrioka

Suita City, Osaka

8,930

3.9

9,820

14.44

Retail other than land-only property

10,600Tokyo Area

Tokyo Area

Logistics

Sagamihara City, Kanagawa

Sagamihara Onodai Logistics Center Sagamihara City, Kanagawa

Atsugi City, Kanagawa

2,690

1.2

2,910

9,825.52

100.0

12.35

Ota Nitta Logistics Center

Ota City, Gunma

3,430

1.5

3,690

42,328.00

100.0

2.01

Ota Higashishinmachi Logistics Center

Ota City, Gunma

2,170

1.0

2,380

23,584.72

100.0

1.39

Ota Kiyohara Logistics Center

Ota City, Gunma

650

0.3

700

9,397.38

100.0

1.39

Izumiya Yao

Yao City, Osaka

4,406

1.9

Chiyodamachi Logistics Center

Oura-Gun, Gunma

330

0.1

354

4,592.00

100.0

7.23

Izumiya Obayashi

Takarazuka City, Hyogo

3,020

1.3

122,02053.6

128,034

610,612.98

100.0

5.76

Ichibancho stear

Sendai City, Miyagi

4,700

EQUINIA Aobadori

Sendai City, Miyagi

Mitsubishi Motors Meguro

Other

Logisticsl Subtotal (18 properties)

Kinki Area

Other

Atsugi Minami Logistics Center A Tow er

Tokyo Area

Land-only retail property

Kinki
Area

24,399.12

100.0

14,941.54 (Retail)100.0

5,856.50 (Logistics)

100.0

4,640

34,198.01

100.0

14.37

3,190

11,714.36

100.0

12.95

2.1

5,090

4,582.81

100.0

2.76

1,640

0.7

1,740

4,030.37

100.0

Meguro-ku, Tokyo

2,740

1.2

2,800

3,381.19

100.0－

Mitsubishi Motors Chofu

Chofu-shi, Tokro

1,760

0.8

1,820

4,183.63

100.0－

Mitsubishi Motors Shibuya

Shibuya-ku, Tokyo

1,570

0.7

1,690

1,421.31

100.0－

Mitsubishi Motors Nerima

Nerima-ku, Tokyo

1,240

0.5

1,270

1,725.61

100.0－

Mitsubishi Motors Kawasaki

Kawasaki City, Kanagawa

950

0.4

1,010

3,057.02

100.0－

Mitsubishi Motors Takaido

Suginami-ku, Tokyo

850

0.4

889

1,923.64

100.0－

Mitsubishi Motors Katsushika

Katsushika-ku, Tokyo

800

0.4

810

1,930.05

100.0－

Mitsubishi Motors Higashikurume

Higashikurume City, Tokyo

800

0.4

813

4,105.00

100.0－

Mitsubishi Motors Setagaya

Setagaya-ku, Tokyo

770

0.3

777

1,305.78

100.0－

Mitsubishi Motors Suginami

Suginami-ku, Tokyo

740

0.3

781

1,831.00

100.0－

Mitsubishi Motors Sekimachi

Nerima-ku, Tokyo

600

0.3

612

989.77100.0－

Mitsubishi Motors Higashiyamato

Higashiyamato City, Toyko

450

0.2

484

2,783.79

100.0－

Mitsubishi Motors Motosumiyoshi

Kawasaki City, Kanagawa

370

0.2

374

1,646.97

100.0－

Mitsubishi Motors Kawagoe

Kawagoe City, Saitama

350

0.2

353

2,462.40

100.0－

Mitsubishi Motors Edogawa

Edogawa-ku, Tokyo

200

0.1

207

892.56100.0－

Mitsubishi Motors Sayama

Sayama City, Saitama

160

0.1

165

1,793.00

100.0－

Ibaraki City, Osaka

820

0.4

877

5,704.24

100.0－

Merad Owada

Osaka City, Osaka

6,640

2.9

6,960

10.16

0.34

Mitsubishi Motors
Ibaraki Maintenance Center
Retail Subtotal (36 properties)

105,59646.4

111,292

280,182.65

99.4

5.6

Total (54 properties)

227,616100.0

239,326

890,795.63

99.8

5.28

23

Portfolio Map
Logistics

Retail01 Landport Urayasu
02 Landport Itabashi
03 Landport Kawagoe
04 Landport Atsugi
05 Sagamihara Tana Logistics Center
06 Sagamihara Onodai Logistics Center
07 Landport Hachioji
08 Landport Kasukabe
09 Funabashi Logistics Center
10 Atsugi-Minami Logistics Center B Tower
11 Hanyu Logistics Center
12 Kawaguchi Logistics Center B Tower
13 Kawaguchi Logistics Center A Tower
14 Atsugi-Minami Logistics Center A Tower
15 Ota Nitta Logistics Center
16 Ota Higashi-Shinmachi Logistics Center
17 Ota Kiyohara Logistics Center
18 Chiyodamachi Logistics Center

19
18

17
15
18
14
36
17
15 16

16
11

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

24

Unitholders (at end of 1st Fiscal Period)
Number of unitholders and investment units

Breakdown of financial institutions
End of 1st period

・Total number of unitholders: 33,150

Individuals and others:
31,998 (96.5%)

End of 1st FY(2013/8/31)

Banks

27,131 units

1.63%

Trust banks

415,931 units

24.98%

Life insurance companies

25,640 units

1.54%

Non-life insurance companies

2,100 units

0.13%

Other financial institutions

77,831 units

4.67%

548,633 units

32.95%: 134 (0.4%)
・Financial
institutions
Financial institutions
・Other domestic corporations : 891 (2.7%)
Other domestic corporations ・Foreign
Foreign corporations: 127 (0.4%)
corporations

Top 10 unitholders

Individuals and others

Unitholder

・Total number of investment units: 1,665,260

End of 1st FY(2013/8/31)

Individuals and others:
656,826 (39.4%)

Financial institutions:
548,633 (32.9%)

End of 1st FY(2013/8/31)
Individuals and others

Other domestic corporations

Financial
institutions
・Otherdomestic
corporations : 225,459 (13.5%): 234,342 (14.1%)
・Foreign corporations

Number of units

Ratio

1 Japan Trustee Services Bank, Ltd.

199,271

11.97%

2 Nomura Real Estate Development Co., Ltd.

87,820

5.27%

3 The Nomura Trust and Banking Co., Ltd.

73,659

4.42%

4 Trust & Custody Services Bank, Ltd.

73,187

4.39%

5 Nomura Bank Luxembourg SA

50,671

3.04%

6 The Master Trust Bank of Japan, Ltd.

48,522

2.91%

7 The Gibraltar Life Insurance Co., Ltd.

15,2500.92%

13,442

0.81%

9 The Bank of New York, Non-Treaty JASDEC Account

11,215

0.67%

The Bank of New York Mellon as Agent BNYM. AS EA
Dutch Pension Omnibus 140016

10,758

0.65%

Total

583,795

35.06%

8

Credit Suisse Securities (Europe) Limited PB Omnibus
Client AccountForeign corporations

Individuals and others

Financial institutions

Other domestic corporations

Foreign corporations

1025

Tenant Status (at end of 1st Fiscal Period)
Top 10 tenants (based on leased area)
TenantUse

Property Name

Total leased area
(㎡)

Ratio
(%)

92,389.48

10.4

70,311.49

7.9

Landport Urayasu
1

Fukuyama Transporting Co., Ltd.

Logistics
Sagamihara Onodai Logistics Center
Izumiya Senrioka

2

Izumiya Co., Ltd.

RetailIzumiya Yao
Izumiya Obayashi

3

Amazon Japan Logistics K.K.

Logistics

Landport Kawagoe

56,377.76

6.3

4

Caterpillar Logistics Services

Logistics

Sagamihara Tana Logistics Center

50,450.00

5.7

5Yokohama Okadaya

Retail

43,830.13

4.9

Yokosuka More’s City
Kawasaki More’s
6

Mitsui-Soko Logistics Co., Ltd.

Logistics

Ota Nitta Logistics Center

42,328.00

4.8

7

Undisclosed (Note)

Retail(land)

Mitsubishi Motors (Total 17 properties)

41,136.96

4.6

8

ASKUL Corporation

Logistics

Landport Itabashi

37,276.71

4.2

9

Otsuka Warehouse Co., Ltd.

Logistics

Landport Urayasu

35,104.40

3.9

10

Shinkai Transport Systems, Ltd.

Logistics

Landport Hachioji

34,896.32

3.9504,101.25

56.70

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

26

Logistics Facilities Environment
Change in the size of the e-commerce retail market
and the number of home delivery service
Number of parcels
handled(million)
3,700(¥ billion)
5,000
4,500
4,000
3,500

Warehouse stock in greater Tokyo area
<Left axis>
Clothes andaccessories(thousand㎡)

supply > New demand
2,500
Warehouses
in greater TokyoNew
area
33 million tsubo 100.0%

3,500

Spots, books，music
and toys

3,300

Pharmaceuticalcosmetics

2,000

Food

Large-scale warehouses
1,500
7.4 million tsubo 22.5%

13.2

3,000
2,500

3,100

2,000
2,900

1,500
1,000

General retail

2,500<Right axis>
Number of parcels
handled1,000

New large-scale warehouses
8.7
3.6 million tsubo 11.1%

500
0
2005

2006

2007

2008

2009

2010

2011

2012

13.1

8.2

Furniture,
household goods,
etc.

2,700

New demand

500
3.9

Supply-demandbalance of rentable0large scale logistics
2006 facilities
2007
2008

Change in 3PL sales(2007=100)

New supply

130(thousand㎡)

New supply > New demand

2,500

2009

New demand

2010

Vacancy rate(%)

New demand > New supply

20.0

120
2,000

110

13.2

100

15.0

13.1

1,500
10.0

8.2

90
1,000
8.7

80

5.0

500

70

2.2

3.9

3.3

0

60
2007

2008

（出所）シービーアールイー株式会社

2009

2010

2011

2012

0.0
2006
New supply

2007

2008
New demand

2009

2010

2011

2012

Vacancy rate

(Source) Prepared by （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6年間情報取得可能な9社を対象とし、平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19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), CBRE, Inc. (lower left) and Ichigo Real Estate Service Co, Ltd. (lower right).

27

Retail Facilities Environment
Retail sales (by item)

Change in retail industry corporate performance¥ trillion (total retail sales)140¥ trillion (sales by item)
50

44

Food and beverage

45

120

40

(¥ billion)

Ordinary income

1,600

(%)

Operating profit on sales

3.5

1,400

3

1,200

33

33

1,000

Other retail

80

25
21

Commodities

400
200

0.5

0

0

Total retail industry sale (excluding fuel)2005

Change in Economy Watcher’s index

2006

DI for current business conditions

2012

4-6

1-3

7-9

10-12

4-6

1-3

7-9

2011

10-12

4-6

1-3

7-9

2010

10-12

4-6

1-3

7-9

2009

10-12

4-6

1-3

7-9

10-12

1-3

7-9

4-6

4-6

2008

2013

(Reference) Impact of consumption tax hike (April 1997)
Non-Durable Goods( DI )
60

2007

10-12

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

1-3

0

7-9

20
10-12

7

Mechanical equipment

0

1

4-6

11

5

5

40

1-3

Automobile retail

Clothing and accessories

10

600

7-9

14
11

15

1.5

60

17

10-12

20

2

800

4-6

30

2.5

100

1-3

35

DI for future conditions

Semi-Durable Goods

Non-Durable Goods

Services

6%
4%

55

2%

50

0%

45

-2%

40

-4%

35

-6%

30

-8%

25

-10%

20

-12%

15
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Limited impact on non-durable goods (beverages, food, etc.) and services(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) and public data of the
Cabinet Office (lower left and lower right).

28

Overview of Nomura Master Fund
Structure
Asset Management
Company
Nomura Real Estate

Asset Management Co., Ltd.

Information provisionagreement

Asset managementagreement

Investment Corporation

Asset custodyagreement

Sumitomo Mitsui Trust Bank, Ltd.

Nomura Real Estate
Master Fund, Inc.
Unitholder’s Meeting

General administration
Agreement /Transfer agency
agreement

Development Co., Ltd.

General Administrator
and Transfer Agent
Mitsubishi UFJ Trustand Banking Corporation

Information provider
Nomura Real Estate

Custodian

Board of Directors
Executive Director: Takashi kataoka
Supervisory Director: Sadahiko Yoshimura
Supervisory Director: Shuhei Yoshida

AuditorErnst & Young Shin Nihon LLC

History
January 28, 2013
Filing of incorporation by the founder (Nomura Real Estate
Asset Management Co., Ltd) under Article 69 of theInvestment Trusts Act.
January 31, 2013
Registration of incorporation under Article 166 of theInvestment Trusts Act, Incorporation of NMF
February 1, 2013
Application for registration under Article 188 of theInvestment Trusts Act.
February 22, 2013
Registered with the Prime Minister of Japan under Article
187 of the Investment Trusts Act.
(Registration No. 82, Kanto Local Finance Bureau)
June 12, 2013
Listed on the Tokyo Stock Exchange

29

Overview of the Asset Management Company
Organizational chart

Overview
Company name

Nomura Real Estate Asset Management Co., Ltd.

Shareholder

Nomura Real Estate Holdings, Inc. (100%)

Location

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

Contact Information +81-3-3365-8767
Registration,
License, etc.

Memberships

nmf3285@nomura-re.co.jp

・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.

30

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, 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.