NBF Report Jan.-June. 2003

4th Period
From : January 1, 2003
To
: June 30, 2003

7-2, Yaesu 2-chome, Chuo-ku, Tokyo, Japan

http://www.nbf-m.com/nbf/

Table of Contents
Pages

Introduction

1

Portfolio Snapshot

2

Related Entities of NBF

11

I Performance Information Report

13

Investment Performance Overview

14

Overview of NBF

20

Outline of Investment Portfolio

24

Capital Expenditures

32

Expenses regarding Entrustment etc.

33

Trading Activities during the Current Period

34

II Financial Statements
Corporate Data

37
Back cover

The preparation of this report reflects the most recent six-month accounting period of NBF (ended June 30, 2003). The report with respect to the third
period (ended December 31, 2002) includes a “Message from NBFM to the NBF Shareholders” as well as information concerning “Related Entities of NBF”,“Investment Policies of NBF”, “Distribution Policies of NBF”, “Overview of Related Operating Entities”, “Investment Objects and Investment Restrictions”,
which are excluded herefrom (and from any even-numbered period report) but are available by reference to NBF’s previous period report.

This document contains translations of selected information described in the Securities Report (yuka shoken hokokusho) filed on September 26, 2003
pursuant to the Securities Exchange Law of Japan, and the Financial Statements and the Performance Information Report for the period from January 1,
2003 to June 30,2003, of Nippon Building Fund Inc. prepared pursuant to the Investment Trust Law of Japan.
This English language document was prepared solely for the convenience of and reference by overseas investors and neither corresponds to the original
Japanese documents nor is it intended to constitute a disclosure document. The Japanese language Securities Report and the Financial Statements andthe Performance Information Report for the aforementioned period should always be referred to as originals of this document.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to the concept of the equivalentJapanese terms. With respect to any and all terms herein, including without limitation, financials statements, if there exist any discrepancies in the meaning
or interpretation thereof between the original Japanese documents and English statements contained herein, the original Japanese documents will always
govern the meaning and interpretation. None of Nippon Building Fund Inc., Nippon Building Fund Management Ltd. or any of their respective directors,
officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for the completeness, appropriateness or accuracy of English
translations or the selection of the portion(s) of any document(s) translated into English. No person has been authorized to give any informations or makeany representations other than as contained in this document in relation to the matters set out in this document, and if given or made, such information or
representation must not be relied upon as having been authorized by Nippon Building Fund Inc., Nippon Building Fund Management Ltd. or any of theirrespective directors, officers, employees, partners, shareholders, agents or affiliates.
The financial statements of Nippon Building Fund Inc. have been prepared in accordance with generally accepted accounting principles in Japan(Japanese GAAP) which may materially differ in certain respects from generally accepted accounting principles in other jurisdictions.
Many provisions of this document contain forward-looking statements and information. We base these statements on our beliefs as well as ourassumptions based solely on certain limited information currently available to us. Because these statements reflect our current views concerning future
events, these statements involve known and unknown risks, uncertainties and assumptions. Our future performance could materially differ from those set
out in these forward-looking statements. We do not undertake and will not undertake to release revisions of forward-looking statements to reflect future
events or circumstances or of any other statements or information contained herein.

Nippon Building Fund Inc.

Introduction
Nippon Building Fund Inc. (formerly: “Office Building Fund of Japan, Inc.”. The current name wasadopted on March 14, 2003, hereinafter “NBF”) is a real estate fund structured in the form of aninvestment corporation as prescribed in the Investment Trust Law of Japan. It was formed on March 16,
2001 in Japan as an investment corporation with the objective of investing in assets, consisting primarilyof Designated Assets (as this term is defined in the Investment Trust Law of Japan). The Investment Trust
Law of Japan requires an investment corporation to be managed by an external entity; management ofsuch assets is entrusted to an asset management company (in this case, “Nippon Building FundManagement Ltd.” (formerly “Office Building Fund Management Japan Limited”) hereinafter “NBFM”)
which undertakes such asset management.
NBF’s primary investment objective is to achieve sustainable growth in portfolio value and stableprofits on a mid-term to long-term basis. NBF intends to achieve this objective by investing in real estate
consisting of buildings primarily used for offices and their underlying land located in Tokyo Central
Business Districts (hereinafter “CBDs”), Other Greater Tokyo and Other Cities in Japan as well as
securities, beneficiary certificates representing beneficiary interests in trusts (hereinafter “beneficiary
certificates”) and other assets backed by office properties(collectively hereinafter “Real Estate etc.”)
NBF, which is a public corporation, is a closed-end fund whose shares are non-redeemable upon
demand by a shareholder. The accounting period is six months, except for the first term. For tax
reporting purposes, NBF may deduct its cash dividends of profits from taxable income under Japanese tax
regulations if it distributes to its shareholders amounts being in excess of 90% of taxable income for theperiod and complies with other organizational and operational requirements. NBF will continue its efforts
to satisfy these requirements.

History of NBF
March 16, 2001

Established by founders: Mitsui Fudosan Co., Ltd., The Chuo Mitsui
Trust and Banking Co., Ltd., and NBFM (at the time known as “MF
Asset Management Co., Ltd.”)

May 10, 2001

Registration under Article 187 of the Investment Trust Law of JapanMay 23, 2001

Commencement of business (acquiring trust beneficiary certificateswith respect to properties consisting of 22 office buildings held in
trust)

September 10, 2001

Listing of common shares on the Japanese Real Estate Investment
Trust (hereinafter “J-REIT”) section of the Tokyo Stock Exchange.

1Portfolio snapshot
Asset allocation

Regional allocation
Total Real Estate etc. ¥272,419 mil.

Total Assets ¥307,688 mil.

Other Greater Tokyo
37,625million (13.8%)

Other Cities
33,518million (12.3%)

Real estate
30,917million(10.0%)
Real estate held in trust
241,502mil. (78.5%)

Deposits and other assets
35,268mil. (11.5%)

Tokyo CBDs
201,275million (73.9%)

Note: Figures above are based on the book value as of June 30, 2003.

Occupancy rate

(%)

100

99.9
96.9

95

90

94.4

90.5

99.8
97.0
94.1

91.4

99.8

99.8

99.8

99.8

99.9

99.9

99.9

99.8

99.7

99.8

99.8

99.8

96.9

97.2

97.2

97.5

97.6

97.3

97.4

97.2

97.3

97.4
95.9

97.2

97.0

93.6

93.8

93.8

93.0

93.0

94.8
93.4

94.2
93.7

94.6
92.8

95.0
93.6

95.0

92.8

91.6

95.6

92.7

92.6

95.3

92.5

94.9

92.6

96.0
94.7
93.8
92.2

96.0
94.6
93.7
91.9

96.0
94.8
94.5
92.0

97.7
96.1

95.0

96.4
95.0

96.4
95.3

96.4
95.4

94.6

94.6

94.7

95.0

94.7
93.0

91.2

92.1

92.5

91.3

96.4

98.3
96.4
95.4
94.9
94.8
94.6
94.3 94.9
94.4
93.8
92.4

95.5
95.4
92.5

92.2

91.0 91.8
90.1
88.8

85

80

0

May 23 Aug 31 Sep 30 Oct 31 Nov 30 Dec 31 Jan 31 Feb 28 Mar 31 Apr 30 May 31 Jun 30
2001
2002

1st Period

2nd PeriodTokyo CBDs

Other Greater Tokyo

Jul 31 Aug 31 Sep 30 Oct 31 Nov 30 Dec 31 Jan 31 Feb 28 Mar 31 Apr 30 May 31 Jun 30
2003

3rd Period
Other Cities

Note: Occupancy rates: Ratio of gross leased area to total rentable area

2

4th Period
Total

Jul 31 Aug 31 Sep 30

5th Period

Nippon Building Fund Inc.

Acquisition
NBF acquired the following property on September 30, 2003. An overview of the property as of October 31, 2003 is as follows.

NBF Hiroshima Tatemachi Bldg.
Other Cities

Acquisition date:

September 30, 2003

Outline of Acquired Property : Fee simple
Acquisition price:¥2,930 million

Acquisition structure:

Real Estate

Location:

2-27, Tatemachi, Naka-ku, Hiroshima, Hiroshima

Site area:

1,013.35m2

Floor area of building:

8,656.97m2

Structure:

Steel-framed reinforced concrete building, Flat roof
12 above ground floors, 1 below ground floor

Completion:

November 12, 1991

Number of tenants:

20

Rentable area:

5,693.49m2

Leased area:

4,813.75m2

Occupancy rate:

84.5%

NBF acquired the following property on November 5, 2003. An overview of the property as of its date of acquisition is as follows.

Sapporo L-plaza
Other Cities

Acquisition date:November 5, 2003

Outline of Acquired Property : Condominium interest
Acquisition price:¥3,195 million

Acquisition structure:

Real Estate

Location:

Kita 8-jo, Nishi 3-chome, Kita-ku, Sapporo,
Hokkaido

Site area:

4,759.69m2 in which NBF holds an interest of 23.2%.

Floor area of building:Gross floor area of the entire building:32,601.54m2
Floor space of divided condominium interests of
NBF:8,127.54m2

Structure:

Steel-framed reinforced concrete building, Flat roof
13 above ground floors, 1 below ground floor

Completion:

March 7, 2003

Number of tenants:

11

Rentable area:

8,451.60m2

Leased area:

8,451.60m2

Occupancy rate of NBF’s interest:

3

100%

Location of Office Properties
Tokyo CBDs
Kita-ku

Itabashi-ku

Arakawa-ku
IkebukuroHaToshima-ku
oshima-ku

Nippori

ku

sa

n-

dori

Av
e.

Bunkyo- -ku
Bunkyo-i-d ori-

Sumida-ku

oda-kuChiyoda-ku
Chiy

So

tob

Ome-kaido Ave.

Shinjuku-kuorNakanosakaue

Ave.

Meiji-do- ri
Ave.

Chu- o- Line

Taito- -ku

Showa-do- ri Av
e.

Ueno

Shinjuku

Mitsukoshimae

- shu

Ko

Shibuya-ku

- ri

o

a-d

am
Aoy

Hib
iya
-dori Ave.

- Ave.
o- -kaid-

Imperial Palace

Yotsuya.
Ave

O temachi-

Kiyosubashi-dori Ave.
-

-

Tokyo

Ko- to- -ku.
ve- ri Aodgi-ToranomonnpoShinbashi

Chu- o- -kupRoRoppongi

Shibuya

Yam
te L

ano

e.
Av

TamachiineNakameguro.
ve- ri A
do
tema
Ya

- ri
o
-d
wa
a
ag
m
Ta

Hamamatsucho-

Minato-ku

Setagaya-ku

Meguro-ku

Shinagawa

keih
in

Hig

Daini-hwaykeihinH

igh way

Shinagawa-ku
Shinagawa-ku
Shinaga
wa-ku

chi-

Express way

Daii

JR LineSubway Ginza Line
Subway Marunouchi LineJFE Bldg.
Shiba NBF Tower
Shinjuku Mitsui Bldg. No.2
GSK Bldg.
Naka-Meguro GT Tower
Kowa Nishi Shinbashi Bldg. B
Nippon Steel Bldg. No.2
Nihonbashi Muro-machi Center Bldg.
Takanawa 1-chome Bldg.
Mita City Bldg.(*)
Shinjuku Yocho-machi Bldg.
Nishi-Shinjuku Mitsui Bldg.
(Other Greater Tokyo)
Nakano-Sakaue Sunbright Twin

Subway Hibiya Line-To- kyo- -Bay-

Subway Hanzomon Line(*)Note: Effective July 1, 2003, the name of this building changed to Sumitomo Densetsu Bldg.

4

Nippon Building Fund Inc.

su

- et
Jo

ToSh hok
ink u
an
se
n

Tsukuba Mitsui Bldg.

Joba

Tsukuba(temporaly)nE

IBARAKI

xp

wy

Other Greater TokyoTSUKUBA-SHI

)
05
20
r
ss fo
re n
xp la
E p
a ing
ub n
uk en
e
Ts Op
Lin
(
- an
Job

ku

en

- ho

ns

To

ka

in

Sh

SAITAMA

y
pw
Ex

-

Omiya

Daido Life Omiya Bldg.
SAITAMA-SHI
su
et
nKa
-

y
pw
Ex

Toky

o- Ga

ikan

Expw

y

-

Matsudo City Bldg.
MATSUDO-SHI

-

TOKYO

MatsudoTokyo CBDs
MUSASHINO-SHI

CHIBA

Kitasenju

Nakano-Sakaue
Sunbright Twin

Shinjuku

Akihabara

CHOFU-SHI
pwy

-

to

hi-kanHigasyExpw

To- kyo--Shibuya

- Ex
-o
Chu

Inagekaigan

CHIBA-SHI
Shinagawa

Tome
iE
xp
wy

Inage Kaigan Bldg.

Chiba

Other Cities

To- kyo- -Bay

Kawasaki

KANAGAWAKAWASAKI-SHI

YOKOHAMA-SHI
Yokohama

Toky ow
a

nA

qu

aL

ine

Sapporo Minami Nijo Bldg.

Yokohama ST Bldg.

JR LineExpress Way

Daido Life Sendai Bldg.

Niigata Telecom Bldg.

Unix Bldg.
Shijo Karasuma Minami Bldg.

Other Greater Tokyo
Hamamatsu City Bldg.

Hakata Gion 21 Bldg.

Sun Mullion NBF Tower
Otemae Center Bldg.
Kyoumachi bori Center Bldg.
Sakai Higashi Center Bldg.

5

Tokyo CBDs

JFE Bldg.

GSK Bldg.

(former NKK Headquarters’ Bldg.)

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo: 5,495.49m2: 62,949.13m2: Above ground: 18 floors, below ground 4 floors: June 1974

: 6-15, Sendagaya 4-chome, Shibuya-ku, Tokyo: 5,335.28m2: 29,137.86m2: Above ground: 18 floors, below ground 4 floors: November 1990

Shiba NBF Tower

Naka-Meguro GT Tower

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 1-30, Shiba Daimon 1-chome, Minato-ku, Tokyo
: 6,475.44m2 (*): 44,437.17m2: Above ground: 18 floors, below ground 3 floors: October 1986

: 1-1, Kami-Meguro-2-chome, Meguro-ku, Tokyo
: 6,971.15m2(*): 56,171.33m2(*): Above ground: 25 floors, below ground 3 floors: March 2002(*)Note: NBF has leasehold right in trust for most of the land underlying of the building.

(*)Note: NBF owns 46.9% of the site area. Ownership interest is floors B1, B2 and 14~25 of (office) building.

Shinjuku Mitsui Bldg. No.2

Kowa Nishi Shinbashi Bldg. B

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 2-11, Nishi Shinjuku 3-chome, Shinjuku-ku, Tokyo: 2,980.64m2: 27,685.90m2: Above ground: 18 floors, below ground 4 floors: October 1983

: 14-1, Nishi Shinbashi 2-chome, Minato-ku, Tokyo: 2,449.40m2 (*): 20,180.42m2 (*): Above ground: 16 floors, below ground 2 floors: August 1994(*)Note: Condominium ownership of the building (partly co-owned interest thereof). NBF owns approx.83% of the entire
building.

6

Nippon Building Fund Inc.

Nippon Steel Bldg. No.2

Mita City Bldg.(*)

Location
Site area
Floor area of building
Structure

Location
Site area
Floor area of building
Structure
Completion

Completion: 31-1, 31-7, 20-15, Shinkawa 2-chome, Chuo-ku, Tokyo: 4,307.41m2 (*): 25,938.79m2(*): Above ground: 15 floors, below ground 2 floor: Above ground: 10 floors, below ground 1 floor: November 1989

: 12-15, Mita 3-chome, Minato-ku, Tokyo: 1,458.95m2: 9,185.13m2: Above ground: 12 floors, below ground 1 floor: June 1991(*)Note: Effective July1, 2003, the name of this building changed to Sumitomo Densetsu Bldg.

(*)Note: This property consists of the East and Maison New River Building (site area of 2,775.23m2; floor area of
17,586.10m2) and the West Building (site area of 1,532.18m2; floor area of 8,352.69m2). The figures statedabove as “Site area” and “Floor area” are total figures.

Nihonbashi Muro-machi Center Bldg.

Shinjuku Yocho-machi Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 2-15, Nihonbashi Muro-machi 3-chome, Chuo-ku, Tokyo: 3,097.74m2 (*): 23,019.01m2(*): Above ground: 12 floors, below ground 1 floor: October 1986

: 10-10, Yocho-machi, Shinjuku-ku, Tokyo: 1,984.82m2: 7,185.38m2: Above ground: 7 floors, below ground 1 floor: January 1989(*)Note: Ownership interest is of floors 6-12 of the building. Above figures for floor area are for the entire building.

Takanawa 1-chome Bldg.

Nishi-shinjuku Mitsui Bldg.

Location

Location
Site area
Floor area of building
Structure
Completion

Site area
Floor area of building
Structure
Completion: 3-13, Takanawa 1-chome,
Minato-ku, Tokyo
: 2,618.77m2: 12,847.59m2: Above ground: 9 floors: November 1987

: 24-1, Nishi-shinjuku 6-chome, Shinjuku-ku, Tokyo: 10,014.02m2(*): 84,634.02m2(*): Above ground: 27 floors, below ground 2 floor: April 1999(*)Note: The figures given for “Site area” and “Floor area” above indicate the total site area and total floor area of
this property. NBF owns 3.7% of the site area. An office building (the Nishi-Shinjuku Mitsui Building) anda residential building are located on this site. NBF owns the 18th floor of the office building (1,558.18m2),
which represents 4.1% of the exclusive use area of the office building.

7

Other Greater Tokyo

Nakano-Sakaue Sunbright Twin

Daido Life Omiya Bldg.

Location
Site area
Floor area of building

Location
Site area
Floor area of building
Structure
Completion

Structure
Completion: 46-1, Honcho 2-chome, Nakano-ku, Tokyo: Size of total site 10,331.90m2: Floor space of divided condominium interests are
10,955.90m2 and 984.32m2 respectively ,out of the gross floor area of the entire building:
63,396.95m2(including common areas): Steel-framed reinforced concrete building, Flat roof
Above ground: 30 floors, below ground: 2 floors: September 1996

: 23-1, Kishiki-cho 1-chome, Omiya-ku, Saitama, Saitama: 1,290.21m2: 6,155.16m2: Above ground: 8 floors: October 1991

Yokohama ST Bldg.

Matsudo City Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 11-15, Hokko1-chome, Nishi-ku, Yokohama, Kanagawa: 6,348.45m2 (*): 42,568.77m2 (*): Above ground: 18 floors, below ground 2 floors: October 1987

: 18-4, Hon-cho, Matsudo, Chiba: 1,064.25m2: 6,386.17m2: Above ground: 8 floors: August 1992(*)Note: Co-ownership of 75% of the site and floor area.

Tsukuba Mitsui Bldg.

Inage Kaigan Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 6-1, Takezono 1-chome, Tsukuba, Ibaraki: 6,280.82m2: 26,266.10m2: Above ground: 19 floors, below ground 2 floors: March 1990

8

: 23-2, Takasu 3-chome, Mihama-ku, Chiba, Chiba: 1,884.29m2: 7,175.12m2: Above ground: 7 floors: November 1992

Nippon Building Fund Inc.

Other Cities

Sapporo Minami Nijo Bldg.

Niigata Telecom Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 18-1, Minami Nijo Nishi 2-chome, Chuo-ku, Sapporo, Hokkaido: 970.42m2: 8,149.78m2: Above ground: 9 floors, below ground 2 floors: November 1990

: 4-27, Bandai 4-chome, Niigata, Niigata: 2,385.83m2: 14,146.71m2: Above ground: 10 floors: May 1989

Daido Life Sendai Bldg.

Hamamatsu City Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 16-10, Honcho 2-chome, Aoba-ku, Sendai, Miyagi: 1,658.99m2: 10,585.42m2: Above ground: 14 floors, below ground 1 floor: June 1987

Unix Bldg.
Location
Site area
Floor area of building
Structure
Completion: 312-32, Denmacho, Hamamatsu, Shizuoka: 1,144.81m2: 6,931.30m2: Above ground: 9 floors: December 1990

Sun Mullion NBF Tower: 6-6, Sakae-cho, Fukushima, Fukushima: 3,112.75m2: 23,420.12m2: Above ground: 11 floors, below ground 2 floors: September 1994

Location
Site area
Floor area of building
Structure
Completion9: 6-12, Minami-Honmachi 2-chome, Chuo-ku, Osaka, Osaka: 2,150.36m2: 23,755.80m2: Above ground: 22 floors, below ground: 2 floors: January 1996

Sakai Higashi Center Bldg.

Shijo Karasuma Minami Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location: 3-17, Kita Kawara-machi 1-cho, Sakai, Osaka: 1,978.53m2: 7,294.35m2: Above ground: 8 floors: June 1991

Site area
Floor area of building
Structure
Completion: 167, Dojishacho, Karasuma Nishi-iru, Ayanokoji, Shimogyo-ku,
Kyoto, Kyoto: 761.21m2: 5,792.21m2: Above ground: 9 floors, below ground 1 floor: September 1991

Otemae Center Bldg.

Hakata Gion 21 Bldg.

Location
Site area
Floor area of building
Structure
Completion

Location
Site area
Floor area of building
Structure
Completion: 2-15, Otemae 1-chome, Chuo-ku, Osaka, Osaka: 1,038.25m2: 7,580.74m2: Above ground: 13 floors, below ground 1 floor: June 1992

Kyoumachibori Center Bldg.
Location
Site area
Floor area of building
Structure
Completion: 17-16, Kyoumachibori 1-chome, Nishi-ku, Osaka, Osaka: 530.21m2: 3,919.95m2: Above ground: 10 floors, below ground 1 floor: April 198710

: 2-1, Gion-cho, Hakata-ku, Fukuoka, Fukuoka: 1,394.88m2: 7,477.69m2: Above ground: 9 floors: April 1993

Nippon Building Fund Inc.

Related Entities of NBF
General Meeting ofshareholders

The Chuo Mitsui Trustand Banking

Asset Custody
Entrustment

Asset Management
Entrustment

Asset Custody

Mitsui Fudosan

Office Management
Entrustment

Nippon Building
Fund Management
Ltd.
(NBFM)

Nippon Building
Fund Inc.
(NBF)
Board of Directors

NBF Office
Management

Borrowings/Bonds
Debt service

Liabilities

OfficeManagement

Investment

AssetsRent etc.

Real Estateetc.

Investment

Shareholders’EquityQualified
Institutional
Investors/
Bondholders

Shareholder

Trading

Distribution

Shareholder

Major Related Operating Entities
Assignment

Name

Asset Management Company

Nippon Building Fund Management Ltd.(“NBFM”)

Asset Custodian

The Chuo Mitsui Trust and Banking Co., Ltd.

Transfer Agent

The Chuo Mitsui Trust and Banking Co., Ltd.

Accounting AgentHEISEIKAIKEISHA Tax Co.

Administrative Agent

Nippon Building Fund Management Ltd.(“NBFM”)

11

12

Ⅰ

Performance Information Report■ Investment Performance Overview
Financial Highlights
Performance Review for the Current Period
Management Discussion on Investment Policy and Outlook■ Overview of NBF
Distribution for the Current Period
Capitalization
Major Shareholders
Categories of Shareholders■ Outline of Investment Portfolio
Portfolio Summary
Selected Data by Property
Selected Office Leasing Data by Property
Selected Financial Data by Property
Major Tenants Roster
Other Assets■ Capital Expenditures
Planning
Capital Expenditures for the Current Period
Cash Reserve for Capital Improvements■ Expenses regarding Entrustment etc.
■ Trading Activities during the Current Period
Trading of Real Estate and Real Estate held in Trust
Trading of Other Assets Including Total Amount and Transactions
Related Parties Transactions13

1. ■ Investment Performance Overview
1.

Financial Highlights
4th Period

3rd Period

2nd Period

from January 1,

from July 1, 2002 tofrom January 1,

2003

December 31, 2002

to June 30, 2003

2002
to June 30, 2002

(Yen in millions, except per share data or where otherwise indicated)

Operating revenues
Revenues from property leasing
Operating expenses
Rental expenses
Income before income taxes
Net income(a)Total assets(b)
Total shareholders’ equity (‘Net assets’)(c)Contributed capital
Total amount of cash distribution(e)Total number of common shares issued (shares)(d)
Net assets per share (Yen)(c) / (d)Distribution per share (Yen)(e) / (d)Distribution of accumlated earnings per share(Yen)
Distribution in excess of accumlated earnings per share(Yen)
Return on total assets
Note 2
ROE

Note 2

Capital ratio
Payout ratio
Number of days(c) / (b)(e) / (a)Note 2Other supplementary data :Number of investment properties
Number of tenants
Total rentable square meters
Occupancy rate
Depreciation and amortization
Capital expenditures
NOI from property leasing activities
FFO per share (Yen)

Note 4Note 4Note 4Note 2
Note 2¥12,239
12,239
7,196
6,548
4,314
4,313
307,688
153,212
148,899
4,313
280,700
545,823
15,367
15,367¥11,846
11,846
6,656
6,031
4,563
4,562
290,725
153,461
148,899
4,562
280,700
546,710
16,253
16,253¥ 11,259
11,259
6,252
5,623
4,493
4,492
278,976
153,391
148,899
4,492
280,700
546,460
16,00316,003

−

−

−

1.44%
（2.88%）
2.81%（5.63%）
49.8%
100.0%
181

1.60%（3.20%）
2.97%（5.95%）
52.8%
99.9%
184

1.68%
(3.35%)
2.92%(5.84%)
55.0%
100.0%
18129
446
340,497
94.8%
2,366
1,167
8,057
23,79428
441
322,344
95.0%
2,072
368
7,886
23,63526448
303,485
97.4%
1,947
454
7,583
22,938Note 1 Operating revenues do not include consumption taxes.
Note 2 All valuations are calculated through the following formulas. The figures in parenthesis are annualized based on the 6 months figures for theperiod.
Return on total assets: Income before income taxes / (Initial total assets + Total assets at end of period)÷2
ROE: Net income / (Initial shareholder’s equity + Shareholder’s equity at end of period)÷2
NOI (Net Operating Income) from property leasing activities:

Note 3(Revenue from property leasing−Rental expenses)＋Depreciation and Amortization
FFO (Funds From Operation) per share : (Net income + Depreciation and Amortization)/ Weighted average number of common sharesissued and outstanding during the period.
As for payout ratio, figures beyond the first decimal place have been disregarded.

Note 4

Number of investment properties means units generally perceived to be one office building. Number of tenants means gross number oftenants by building. Occupancy rate is ratio of gross leased area to total rentable area at the end of the period.

14

2. Performance Review for the Current Period
About NBF and NBFM
Nippon Building Fund Inc. (formerly “Office Building Fund of Japan, Ltd.” and hereinafter “NBF ”)
is a real estate fund structured in the form of an investment corporation as prescribed in the Investment
Trust Law of Japan. It was formed on March 16, 2001 with Mitsui Fudosan Co. Ltd., The Chuo Mitsui
Trust and Banking Co. Ltd. and NBFM (at the time known as "MF Asset Management Co., Ltd") acting
as founders. Registration with the Kanto Local Finance Bureau of the Ministry of Finance wascompleted on May 10, 2001 and NBF started acquisition of office properties on May 23, 2001. NBF
is an externally managed real estate investment corporation. NBFM, acting as NBF’s asset
management company, is engaged in acquiring, managing, leasing, and renovating office properties.
Mitsui Fudosan Co., Ltd. and Sumitomo Life Insurance Company own 43% and 35% respectively of
NBFM with the remaining 22% mainly owned by financial institutions.
(a) Investment Climate and Operating Performance
Although general industry earnings showed some signs of recovery, the Japanese economy continued
to be stagnant during the current period. The employment situation was still severe, capital
expenditures by companies as well as personal consumption continued to slump and housing
construction and public investment remained weak as a whole. Deflationary trends are prolonged andcontinuing uncertainty of the U.S. economy affected the Japanese economy.
In the office building rental market, under the condition of depressed demand for new office space,
newly constructed office buildings resulting from large-scale development in the areas of Shiodome,
Roppongi and the east entrance of the Shinagawa station, etc. accelerated the oversupply of new officespace causing higher vacancy rates and lower rent levels in the Tokyo CBDs, which had been relatively
stable. Furthermore, occupancy rates continued to fall in most areas of Other Greater Tokyo andOther Cities due to overall weak demand. However, asset sale transactions in the office property market
occurred in anticipation of financial restructuring of companies, disposal of bad loans by financial
institutions and adoption of Accounting Standards for Impairment of Fixed Assets” under Japanese
GAAP in near future.
In response to this environment, NBF has managed its assets based on the policy of investing inhighly desirable office properties which are competitive in terms of location, size and equipment
specifications. NBF focuses on attracting prime tenants to provide relatively stable cash flows anddecreased risk of sudden decline in asset valuation.
In accordance with the abovesaid policy, NBF has made stringent selections based on analysis of anenormous amount of property information. NBF acquired the Naka-Meguro GT Tower (a condominium
interest, the acquisition price of approximately ¥13,760 million being based on the sale and purchaseagreement, hereinafter the same) in February 2003, and additional beneficial trust interests in the
Tsukuba Mitsui Building (25% of total beneficial interests was acquired at a price of approximately¥2,010 million. As a result of this transaction, NBF’s interest in the Tsukuba Mitsui Building increased
from 75% to 100%, NBF now owns it in fee simple). NBF’s office portfolio at the end of the current
period consisted of 29 office properties representing a total investment of approximately ¥276,000
million and comprising total rentable area of approximately 340,000 square meters (approximately
103,000 tsubo).
15

In addition, the construction of the Sapporo L-Plaza property in which NBF decided to acquire a
condominium interest in December 2002, was completed in March 2003, for an anticipated price ofapproximately ¥3,190 million. This transaction is expected to close in November 2003 as initiallyscheduled. The occupancy rate of this property at the end of the current period was 100%.
In the existing portfolio, the lease contract with the tenant of the Nippon Steel Building No.2 wasconverted to a fixed term lease contract. NBF also concluded a full-scale, high-spec renovation ofvacated premises and took advantage of the mutually-agreed termination of contracts with large tenantsin the Shiba NBF Tower and the Mita City Building by positively pursuing new tenants. Acquisition of
successor tenants proceeded smoothly; the entire Mita City Building was leased by a new tenant in July
2003 and the name of the building changed to Sumitomo Densetsu Building at the same time. The
occupancy rate for NBF’s portfolio as a whole remained high level at 94.8% at the end of the current
period.
Further, while continuing proper building maintenance standards, NBF continued to cut leasing
operational costs by reviewing and in some cases changing building maintenance companies throughcompetitive bidding as well as by revising the provisions of the contracts with such companies. NBF’starget was to achieve a 10% reduction in costs for the 24 properties it then owned at the time of firstlisting during the following two-year period (2002 and 2003). On a contract by contract basis, costs had
been reduced by approximately 20%, even more than original target at the end of the current period.
(b) Outline of Funding
Regarding funding through interest-bearing obligations such as loans etc., NBF intends to exercise
financial prudence by focusing on highly flexible unsecured non-guaranteed bank loans (suchinterest-bearing obligations comprised 41.9% of total assets at the end of the current period). Also, as
the result of an aggressive program of replacing short-term loans with long-term fixed interest loans,the portion of interest-bearing obligations represented by long-term loans at the end of the current
period was 72.9%. NBF has the objective of minimizing risks of future increases in interest rates, aswell as issuing bonds in order to diversify funding methods to take an advantage of the historic
low-interest-rate environment.
No.2 Unsecured Bonds

No.3 Unsecured Bonds

Issue Date: Feb. 10, 2003
Issue Amount: ¥10 billion
Subscribers: accredited institutional investors only
Maturity: 4 years
Coupon : 0.75%
Ratings Obtained:
Standard & Poors: A
Moody s Investors Service: A3

Issue Dated: June 12, 2003
Issue Amount: ¥10 billion
Subscribers: accredited institutional investors only
Maturity: 15 years
Coupon: 2.00%
Ratings Obtained:
Standard & Poors: A
Moody's Investors Service: A3

Moreover, NBF continued to enjoy the following issuer ratings which facilitated its efforts todiversify future funding methods.

16

Rating Agency
Standard & Poors

Rating Description
Long Term Corporate：A
Short Term Corporate：A-1
Outlook： stable
Issuer Rating: A3
Outlook：stable

Moody's Investors Service(c) Outline of Business Results and Distributions
NBF's business results of operations during the current six month period ended June 30, 2003
consisted of operating revenues of ¥12,239 million (an increase of ¥393 million, or 3.3%, compared tothe six month period ended December 31, 2002), operating income from leasing activities of ¥5,691
million (a decrease of ¥123 million, or 2.1%, compared to the previous period), operating income after
asset management, custody and agent fees of ¥5,043 million (a decrease of ¥146 million, or 2.8%,
compared to the previous period) and income before income taxes of ¥4,314 million (a decrease of¥249 million, or 5.5% compared to the previous period). During the current period, in spite ofdecreased rental revenues in several buildings, increases were recorded in both revenue and profit withrespect to the 28 properties excluding the Shiba NBF Tower. Such increases are attributable tocancellation fees from the large tenant of the Mita City Building, leasing revenue from operation of the
Nishi Shinjuku Mitui Building and the Nippon Steel Building No.2 which were acquired during theprevious period, and leasing revenue from commencement of operation of the Naka-Meguro GT Tower
and the Tsukuba Mitsui Building which were acquired during the current period, as well as to adecrease of rental expenses due to reduction of property management costs. As for the Shiba NBF
Tower, a significant decrease in revenue and profitability was recorded, which was mainly due to the
non-recurring receipt of cancellation fees that occurred in the previous period and decreased rental
revenue resulting from the vacancy until a successor tenant was acquired. As a result, revenues withrespect to all 29 properties increased but profits decreased compared to the previous period
In addition, NBF distributed almost 100% of unappropriated profit (¥15,367 per share) in accordancewith the distribution policies of its Articles of Incorporation and assumes that the regulations
concerning the deduction of such distribution from taxable income (Article 67-15 of the Special
Taxation Measures Law) will apply resulting in net income of ¥4,313 million for the current period(down 5.5% compared to the previous period).

3．Management Discussion on Investment Policy and Outlook（a） Operating Policies
While certain economic indices showed signs of recovery, Japanese economy remains uncertain andis anticipated to remain weak.
The future office building rental market in the Tokyo CBDs is, as a whole, expected to maintain thetrends of higher vacancy rates and lower rent levels due to a decline in demand as well as the effect ofoversupply of new office space (the so-called “2003 problem”), pressures to reduce costs throughmergers or consolidations and concentration of business functions. Moreover, in the Other Cities, inspite of the fact that some areas were stable, the market as a whole may suffer weakness in the future
due to factors such as the concentration of business activities in Tokyo and the uncertainties of theregional economies.

17

Further, needs of tenants for office infrastructure are diversified and tenants are demanding higher
standards of IT capability, HVAC equipment, security, multi-functionality and so forth. Tenants preferto chose a highly desirable buildings responding to their needs. NBF is determined to implement its
strategy of differentiating itself by providing competitive, value-added properties which address theneeds of tenants.
As for the market for the purchase and sale of office properties, disposal of properties are expected tobe accelerated in anticipation of the needs of businesses to improve their financial standing, increasing
disposal of bad loans by financial institutions and the adoption of Accounting Standards for
Impairment of Fixed Assets” under Japanese GAAP. We believe these factors will create anenvironment in which there are increased opportunities to acquire highly desirable properties.
Under these circumstances, NBF has, based on the following management strategies and with along-term view, conducted appropriate operations with the objective of achieving steady growth andstable profits from managed assets.
With the objective of obtaining further efficiencies in connection with the expansion of its managed
assets, effective July, 2003 NBF reduced the fees paid to NBFM, to which it entrusts management of
NBF's assets, as well as the fees paid to Mitsui Fudosan Co., Ltd., to which it entrusts office custodial
activities, from the rate of 3% of NBF's revenues to 2.5% respectively.
（b） Management Strategies(1) Operating Strategies for Existing Properties
Based on analysis of the tenant satisfaction surveys conducted annually as one of NBF's
differentiation strategies, NBF grasps the detailed needs of its tenants and takes the initiative inretaining or improving the terms and conditions of contracts for the purpose of further enhancing thelevel of service provided to tenants. Home pages are established by each building for its tenants asanother example of tenant communications tools, which serve to further strengthen the relationshipwith its existing clients.
Further, with respect to vacant space, NBF establishes rents properly in line with current market
trends and places priority on improvement of occupancy rates and conducts sales activities positively
in order to elicit demand from potential tenants which are suited to the special characteristics of each
property.
With respect to lease contracts, NBF strives to generate stable lease income through use of
fixed-term lease contracts, long-term lease contracts, and addition of covenants such as prohibiting
early cancellation by tenants.
Regarding building management, NBF continues to exert its best efforts to reduce costs bychanging maintenance companies through effective methods such as competitive bidding and bycontinuing proper building maintenance standards.

(2) Strategies for New Investment

18

In accordance with its operating policies , NBF, while placing emphasis on distribution per share,
primarily conducts operations with the goal of ensuring steady growth of managed assets and stableprofits.
NBF continues to strive to obtain information in advance regarding potential sales and to develop
information routes to locate desirable properties in order to avoid excessive price competition throughbidding. NBF has implemented risk management policies for the purpose of acquireing competitive
properties on favorable terms and conditions at rational prices. NBF focuses on consideringcommitments to buildings which have yet to be constructed that are planned to be purchased uponcompletion.
In the Tokyo CBDs, NBF rigorously selects, from the high volume of large scale new buildings
coming on line, buildings that are in competitive condition (i.e. buildings that have close proximity to
the nearest subway or train station, are of recent construction, have expansive space per floor, areesthetically pleasing in appearance, have high-spec electrical supply and HVAC, IT compatibility,
and amenities such as a sufficient number of parking spaces) in order to respond to tenant demands of
reduced costs and improved building facilities, management and service.
Further, for the purpose of reducing the risk of vacancy due to tenant relocations, priority is given
to acquisition of buildings in which it is foreseeable that tenants will sign long term lease contracts,and multi-tenant buildings. By studying market trends and avoiding areas in which competition isparticularly severe, NBF invests in comparatively stable areas.
While markets are smaller and demand is stagnant or declining in Other Greater Tokyo and Other
Cities, the impact of new supply is great and NBF is considering even more focused investments
taking into account not only the desirability of a particular building but also scarcity in the locationand the possibility of new supply in the area.

(3)Financial Strategies Etc.
As for financing, and in particular obtaining operating funds through borrowings, NBF is preparing
for future increases in interest rates by continuing to base its funding needs on long-term fixed interest
borrowings. Further, to provide a stable funding base, measures such as the issuance of bonds arebeing considered.
NBF is continuously increasing its output of information concerning investment management. In
addition to timely disclosures required under the rules of the Tokyo Stock Exchange, NBF regularly
releases such information as may be useful to investors including various disclosure documents,
detailed information such as descriptive summaries of the existing portfolio of properties, monthly
portfolio performance reports, explanations of new acquisitions and distributions, Q&A, all of which
are readily accessible on the website (http://www.nbf-m.com/nbf/).

19

■ Overview of NBF
1.

Distribution for the Current Period
Distribution per share for the current period was ¥15,367. NBF expects to distribute almost all taxable
income for the current period to be eligible for special tax treatment (Special Taxation Measures Law ofJapan Article 67-15) that allows NBF to deduct its cash dividends of profits from taxable income.
For the six months ended
June 30, 2003

December 31, 2002

June 30, 2002

(Yen in thousands, except per share amount)

Retained earnings
Undistributed earnings
Total cash distribution(Total cash distribution per share)
Distibution of accumulated earnings(Distibution of accumulated earnings
per share)
Cash Distribution in excess ofaccumulated earnings(per share)
Note

2.

¥ 4,313,553
36
4,313,517
15,367
4,313,517¥ 4,562,325
108
4,562,217
16,2534,562,217¥ 4,492,139
96
4,492,042
16,0034,492,042

15,367

16,25316,003

―

―

―

―

―

―

Above cash distributions were paid after the period end.

Capitalization
Balance of Paid-in Capital
NBF was established on March 16, 2001 with initial paid-in capital of ¥100 million. NBF began
investing activities in May 2001 after ¥98,800 million was raised through private placements. As of June30, 2003 NBF had issued 280,700 common shares out of 2,000,000 total authorized shares. NBF’scommon shares were listed on the J-REIT section of the Tokyo Stock Exchange in September 2001 upon
the completion of a public offering. As the Investment Trust Law of Japan does not contain any provision
for the issue of more than one class of shares, said common shares comprise the sole class of sharesauthorized and issued by NBF.

Payment date

Remarks

March 15, 2001

Initial capital(private)

May 22, 2001
September 7, 2001

Common Shares
outstanding
Increase
Balance(shares)

Paid-in capital

Notes

Increase
Balance(Yen in millions)

200

200

¥ 100

¥ 100

Note 1

Privateplacement

197,600

197,800

98,80098,900Note 2Public offering

82,900280,700

49,999148,899

Note 3Note 1

NBF was established with initial capital of ¥500,000 per share.

Note 2

Follow-on private offering at ¥500,000 per share to raise funds for acquisition of 22 properties.

Note 3Public offering of new units for ¥625,000 per share (excluding underwriting fee: ¥603,125) to repay debts and20

to fund property acquisition.

Market Price of shares
High/Low (closing price) of shares on the TSE:
For the six months ended

June 30, 2003

December 31, 2002

June 30, 2002

¥ 694,000
570,000(in Yen)¥ 624,000
537,000¥ 581,000
474,000

High.
Low.

Borrowings
Borrowings by financial institution as of June 30, 2003 are shown below.
Short-term debts
Average

Balance

Lender

The Chuo Mitsui Trust and Banking Co., Ltd.
Bank of Tokyo Mitsubishi
The Norinchukin BankThe Sumitomo Mitsui Banking Corp.
The Hachijuni bank
Shinkin Central BankThe Chugoku Bank, Ltd.
Yamanashi Chuo BankThe Gunma Bank, Ltd.
Short-term debt Total

interestrate(%)(Note 1)

(Yen in millions)¥ 10,800
5,400
3,300
3,150
1,300
1,000
1,000
500
500
¥ 26,950

Long-term debts
Sumitomo Life Insurance Company

The Chuo Mitsui Trust and Banking Co., Ltd..
Yasuda Life Insurance Company

Sumitomo Trust and Banking Corp.
Nippon Life Insurance Company
The Sumitomo Mitsui Banking Corp.
The Joyo Bank, Ltd.
Daido Life Insurance Company
The Dai-Ichi Mutual Life Insurance Company
The Iyo Bank, Ltd.
Long-term debts Total
Borrowings Total¥ 12,000
5,000
5,000
3,000
10,000
9,000
3,000
4,000
1,000
2,000
6,000
3,000
2,000
2,000
1,000
1,000
2,000
2,000
1,000
¥ 74,000¥100,950

21

0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%

Due onMay 21, 2004
July 11, 2003
May 21, 2004
May 21, 2004
September 5, 2003
September 22, 2003
September 22, 2003
September 16, 2003
February 3, 2004

1.7% May 23, 2008
1.7% July 16, 20092.1% July 16, 2011
1.2% February 3, 2010
1.3% May 23, 2006
1.3% July 16, 2007
2.1% December 21, 2011
2.2% April 27, 2012
2.2% May 23, 2012
1.2% February 26, 2010
1.3% July 16, 2007
0.7% August 9, 2005
0.7% September 30, 2005
1.2% March 12, 2007
0.9% May 23, 2006
1.4% May 23, 2008
1.2% February 3, 2010
0.7% March 31, 2006
0.7% March 31, 2006

Repayment
MethodBulletpayment

Use ofFunds(Note 3)

Notes

Unsecured/unguaranteed/pari passu,
See (Note 4)
Floating rate

Bulletpayment(Note 3)

Unsecured/unguaranteed/pari passu,
See (Note 4)
Fixed rate

Note 1.
Note 2.
Note 3.
Note 4.
Note 5.

Average interest rate is stated for each lender (average weighted by borrowing outstanding in case of more than one
loan from the same lender) by rounding down to the second decimal place.
With respect to the date of drawdown and date of repayment in case of more than one short-term loan from the samelender, the earliest date of repayment for all such loans coming due is given.
Use of funds for the above includes acquisition of real estate or beneficiary interests, repayment of borrowings andworking capital.
A special agreement attached to “Loan Agreement” entered into between the NBF and each financial institution
provides that the above borrowings from all financial institutions rank pari passu to each other.
The total amount of long-term borrowings (i.e. excluding those expected to be repaid within one year) repayable within
5 years of the date of the balance sheet and expected to be repaid by specific year(s) is as follows.
(Unit：¥1000)
1 to 2 years

2 to 3 years

3 to 4 years−

19,000,000

Balance as ofJune 30, 2003
(Yen in millions)

CouponMaturity
Date

Amount Borrowed

2,000,000

4 to 5 years
28,000,000

NBF Bonds
Issue
Date

Issue
No.1 Unsecured
Bonds
No.2 Unsecured
Bonds
No.3 Unsecured
Bonds
Total
Note 1.
Note 2.
Note 3.

May 23, 2001

¥ 8,000

0.68％

May 21, 2004

Feb 10, 2003

¥ 10,000

0.75％

Feb

June12, 2003

¥ 10,000

2.00％

June12 2018

9, 2007

Redemption
BulletPayment
BulletPayment
BulletPayment

Use ofProceeds

Note

Note 1

Note 2

Note 1

Note 2

Note 1

Note 2¥ 28,000

Use of funds includes acquisition of Real Estate etc., repayment of borrowings and working capital.
The bonds are limited to qualified institutional investors and rank pari passu with other debts issued.
The total amount of bonds repayable within 5 years of the date of the balance sheet and expected to be repaid byspecific year(s) is as follows.
(Unit: ¥1000)
within １ year
Amount Borrowed

8,000,000

1 to 2 years

2 to 3 years−

3 to 4 years−

10,000,000

Others
NBF has security deposits totaling ¥21,369 million as of June 30, 2003.

22

4 to 5 years−

3.

Major Shareholders
The following table sets forth our major shareholders’ information as of June 30, 2003.

Name
Mitsui Fudosan Co., Ltd. . . . . . . . . . . . . . . . .
Obic Business Consultants Co., Ltd. . . . . .
The Nomura Securities Co., Ltd . . . . . . .
Japan Trustee Services Bank, Ltd. . . . . . .
Sumitomo Life Insurance Company . .
Aozora Bank, Ltd. . .
The Cyugoku Bank,Ltd. . . . . . . . . . . . . . . . .
The Joyo Bank, Ltd. . . . . . . . .
Bank Of Ikeda . . . .
Yasuda Mutual Life Insurance Company . . .
Total

4.

Number ofCommonAddress
SharesOwned
1-1 Nihonbashi Muro-machi, 2-chome, Chuo-ku, Tokyo
16,2001-1 Nishi Shinjuku 2-chome, Shinjuku-ku, Tokyo
11,5249-1 Nihonbashi 1-chome, Chuo-ku, Tokyo
10,701
8-11, Harumi 1-Chome, Chuo-ku, Tokyo
18-24 Tsukiji 7-chome, Chuo-ku, Tokyo
3-1 Kudan-Minami 1-chome, Chiyoda-ku, Tokyo
15-20 Marunouchi 1-chome, Okayama,Okayama
5-5 Minami-machi 2-Chome, Mito, Ibaraki
1-11 Jyounan2-Chome,Ikeda,Osaka
9-1 Nishi Shinjuku 1-chome, Shinjuku-ku, Tokyo

Ownership
5.7%
4.1
3.8

10,43910,000
8,000
7,151
7,002
6,946

3.7
3.6
2.9
2.5
2.5
2.5

6,712
94,675

2.4
33.7%

Categories of Shareholders（as of June 30, 2003）

Financial institutions
Other legal entities
Overseas investors
Individuals and others
Securities companies
Japanese government and regional authorities
Total
Note

Number ofshareholders

Number ofshares owned

136
406
130
12,233
10
12,915144,02151,27635,04039,11911,244
280,700

Japan Securities Depositary Center (JASDEC) is included in “Other legal entities”.

23

Percent of
number ofshares owned
51.3%
18.3
12.5
13.9
4.0
100.0%

■ Outline of Investment Portfolio
1. Portfolio Summary
As of June 30, 2003
Investments
Investments/ total assets
Asset type
Region(Yen in millions)(%)
Real estate . . . . . . . . . . . .
Tokyo CBDs . . . . . . . . .
¥ 28,393
9.2
Other Greater Tokyo. . . .
2,524
0.8
Real estate held in trust. . . . Tokyo CBDs . . . . . . . . .
172,882
56.2
Other Greater Tokyo. . .
35,102
11.4
Other Cities. . . . . . . . .
33,518
10.9
Subtotal of Real estate and Real estate held in trust . . .
272,419
88.5
Deposits and other assets . . . . . . . . . . . . . . . . . . . . . . . .
35,26911.5¥307,688
100.0
Total assets
Note

As of December 31, 2002
Investments
Investments/ total assets(Yen in millions)(%)¥ 14,535
5.0
2,538
0.9
173,005
59.5
33,433
11.5
33,95711.7
257,468
88.6
33,25711.4¥ 290,725
100.0

Investments above are based on the book value as of June 30, 2003 and December 31,2002 respectively.

24

2. Selected Data by Property
The outline of NBF’s properties as of June 30, 2003 and December 31, 2002, is as follows.
Name of Building

Invest-ment
Type(Note 1)

Type ofOwnershipof theBuildings

Percentage
ofOwnershipof theBuildings

Year
Built

(%)

As of
June 30,
2003

Probable
Maximum
Loss
As of
December (PML)(Note 3)31, 2002

Appraisal Value(Note 2)

Book Value
As of
December31, 2002(Yen in millions)

As ofJune 30,
2003(Yen in millions)(%)

Tokyo CBDs
JFE Bldg. (Note 4)

Trust

fee simple

100

1974

¥72,820¥73,122¥72,900¥72,983

Shiba NBF Tower (Note 5)

Trust

fee simple

100

1986

32,24431,81522,40026,900

6.8

Shinjuku Mitsui Bldg. No.2

Trust

fee simple

100

1983

15,943

16,036

15,70016,300

10.0

GSK Bldg.

Trust

fee simple

100

1990

15,064

15,19618,00018,000

2.2

59

2002

13,839−13,900−3.7

Naka-Meguro GT Tower

Ownership condominium

10.0

Kowa Nishi Shinbashi Bldg. B

Trust

condominium

83

1994

12,876

12,951

12,90013,000

6.0

Nippon Steel Building No.2
Nihonbashi Muro-machi
Center Bldg.
Takanawa 1-chome Bldg.

Ownership

fee simple

1989

12,863

12,862

12,71012,750

7.4

Trust

condominium

1986

9,854

9,888

10,10010,500

12.6

Trust

fee simple

100
100(Note 6)
100

1987

6,484

6,531

7,060

6,900

15.0

Mita City Bldg. (Note 7)

Trust

fee simple

100

1991

5,317

5,167

4,920

5,290

12.9

Trust

fee simple

100

1989

2,279

2,299

2,440

2,430

14.0

4

2001

1,692

1,673

1,560

1,670

4.8

Shinjuku Yocho-machi Bldg.
Nishi-Shinjuku Mitsui Building

Ownership condominium

Other Greater Tokyo
Nakano-Sakaue Sunbright Twin

Trust

condominium

32

1996

9,192

9,319

9,400

9,310

2.8

Yokohama ST Bldg.

Trust

co-ownership

75

1987

13,291

13,396

13,60013,942

6.4

Tsukuba Mitsui Bldg. (Note 8)

Trust

fee simple

100

1990

8,462

6,519

8,450

6,832

11.0

Daido Life Omiya Bldg.

Trust

fee simple

100

1991

2,292

2,313

2,580

2,660

14.8

Matsudo City Bldg.

Ownership

fee simple

100

1992

2,524

2,538

2,540

2,530

10.8

Inage Kaigan Bldg.

Trust

fee simple

100

1992

1,880

1,850

13.0

1,865

1,886

Other Cities
Sapporo Minami Nijo Bldg.

Trust

fee simple

100

1990

1,799

1,816

1,980

2,020

6.8

Daido Life Sendai Bldg.

Trust

fee simple

100

1987

3,451

3,479

3,520

3,640

3.9

Unix Bldg.

Trust

fee simple

100

1994

3,767

3,830

4,250

4,200

1.6

Niigata Telecom Bldg.

Trust

fee simple

100

1989

3,847

3,879

4,260

4,270

12.0

Hamamatsu City Bldg.

Trust

fee simple

100

1990

1,316

1,333

1,190

1,173

6.1

Sun Mullion NBF Tower

Trust

fee simple

100

1996

10,44010,620

9,640

9,560

2.3

Sakai Higashi Center Bldg.

Trust

fee simple

100

1991

2,164

2,187

2,360

2,423

10.2

Otemae Center Bldg.

Trust

fee simple

100

1992

1,783

1,807

2,020

2,176

5.4

KyoumachiboriCenter Bldg.

Trust

fee simple

100

1987

861

868

635

663

8.6

Shijo Karasuma Minami Bldg.

Trust

fee simple

100

1991

1,542

1,567

1,550

1,614

17.0

Hakata Gion 21 Bldg.

Trust

fee simple

100

1993

2,548

2,571

2,470

2,473

13.0

Total

−

−

−

−

¥272,419¥257,468¥266,915¥258,059

4.3

Note 1All financial activities in the properties are accounted for in the appropriate financial statements ofeach property, even in case of trust beneficiary interests or in case where a trust contains more than one
building.

Note 2

Appraisal values as of June 30, 2003 and December 31, 2002 are based on the appraisal methods
prescribed in the Articles of Incorporation and in the guidelines set forth by the Investment Trusts
Association of Japan. The above values have been prepared by Tanizawa Real Estate Appraisal.

Note 3

The figures for “probable maximum loss” of real estate (excluding the JFE Bldg.) were obtained from25

the report of Engineering & Risk Services Corporation (ERS).

As for the JFE Bldg., the figure wasobtained from the report of Nikken Sekkei Co., Ltd. Probable maximum loss is used as an index toestimate the earthquake resistance of buildings or foundations of buildings.

In the report provided by

ERS, the loss factor indicates only the ratio of restoration costs against the cost of reconstruction ofbuildings themselves (structural materials, non-structural materials and construction facilities) and
incidental damages such as damage to production equipment or machinery, furniture or fixtures,
damage due to water or fire, indemnification of affected persons, or loss of business due to suspensionof business.

These reports were provided with respect to each entire building, regardless of NBF’sownership interest therein, and accordingly the figure above represents each entire building.
Note 4

Effective April 1, 2003, the name of this building changed. (formerly:NKK Headquarters Bldg.)

Note 5

Most of the land underlying the Shiba NBF Tower (6,075.38 ㎡ out of 6,475.44 ㎡) is owned by theJapanese Red Cross Society.

It simultaneously entrusted the leasehold with respect to the leased land,along with its own building and land, to the Trustee. The leasehold was entrusted with the consent of
the owner of said land.
Note 6

The trustee of the Nihonbashi Muro-machi Center Bldg. owns 100% of the interests in the portion of
offices consisting of the 6th through 12th floors (floor space of 7,755.94 ㎡), 45.11% of the parking
portion (floor space of 1,141.83 ㎡) and 45.11% of the common use space established pursuant to anagreement.

Note 7

Effective July 1, 2003, the name of this building changed to Sumitomo Densetsu Bldg.

Note 8NBF previously owned 75% of the trust beneficiary interest in the Tsukuba Mitsui Bldg. However, on
March 28, 2003 it acquired the remaining 25% interest. With the exception of Book Value andAppraisal Value as of December 31, 2002, the figures set forth in the table above include the additional
25% interest.

26

3.

Selected Office Leasing Data by Property
The following table sets forth selected information relating to office leasing as of June 30,
2003.
Current period(January 1, 2003-June 30, 2003)
Tokyo CBDs
JFE Bldg.
Shiba NBF Tower
Shinjuku Mitsui Bldg. No.2
GSK Bldg.
Naka-Meguro GT Tower
Kowa Nishi Shinbashi Bldg. B
Nippon Steel Building No.2
Nihonbashi Muro-machi Center Bldg.
Takanawa 1-chome Bldg.
Mita City Bldg. （Note 3）
Shinjuku Yocho-machi Bldg.
Nishi-Shinjuku Mitsui Building
Other Greater Tokyo
Nakano-Sakaue Sunbright Twin
Yokohama ST Bldg.
Tsukuba Mitsui Bldg.（Note 4）
Daido Life Omiya Bldg.
Matsudo City Bldg.
Inage Kaigan Bldg.
Other Cities
Sapporo Minami Nijo Bldg.
Daido Life Sendai Bldg.
Unix Bldg.
Niigata Telecom Bldg.
Hamamatsu City Bldg.
Sun Mullion NBF Tower
Sakai Higashi Center Bldg.
Otemae Center Bldg.
Kyoumachibori Center Bldg.
Shijo Karasuma Minami Bldg.
Hakata Gion 21 Bldg.
Total

Leased Square Occupancy Rates Total Number
Rentable Square
Meters at the End
at the Endof Tenants
Metersof Periodof Periodat the End(Note 1)
(Note 1)
(Note 2)of Period
65,28024,88914,946
20,407
13,626
10,08817,3388,041
10,473
5,978
5,177
1,576

65,28021,731
14,946
20,407
13,626
10,08817,3388,041
10,473
0
5,177
1,576

100.0%
87.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
0.0%
100.0%
100.0%

1
3
29
1
1
2
2
7
4
0
4
1

12,22020,08916,863
3,604
4,772
5,876

12,22020,00015,219
3,364
3,986
4,710

100.0%
99.6%
90.2%
93.3%
83.5%
80.2%

1
76
59
8
23
13

5,376
7,498
13,47910,227
5,152
14,208
5,333
5,532
3,110
3,922
5,417
340,497

4,926
7,498
13,237
9,486
4,778
12,740
5,100
5,398
2,531
3,617
5,417
322,91091.6%
100.0%
98.2%
92.8%
92.7%
89.7%
95.6%
97.6%
81.4%
92.2%
100.0%
94.8%

7
7
57
32
25
25
16
7
13
15
7
446

Note 1Figures stated above are based on NBF’s ownership interest.

Note 2

Occupancy rates is the ratio of leased area to rentable area at the end of period.

Note 3Due to the relocation of Canon Sales Co., Ltd., the occupancy rate for the Mita City Bldg. as of June 30,
2003 was 0%. However, the execution of a fixed-term lease contract with Sumitomo Densetsu Co., Ltd.
effective July 1, 2003 resulted in an occupancy rate of 100%.

Further, effective the same date, thename of the building changed to Sumitomo Densetsu Bldg.
Note 4

Includes the additional interest acquired during the current period.

27

4.

Selected Financial Data by Property
The following table sets forth selected information relating to office leasing for the period fromJanuary 1, 2003 to June 30, 2003.
Current period(January 1, 2003-June 30, 2003)

Revenues

Percent of
total
revenues(Note 1)Net
Operating
CapitalOperatingDays
ExpendiIncomein the current
tures
period(Note 3)
(Yen in millions)OperatingExpenses(Yen in millions)(%)
Tokyo CBDs
JFE Bldg. （Note 5,6）
17.8
¥ 2,175¥ 719¥ 1,758¥ Shiba NBF Tower
10.0
1,221
837
693
740
Shinjuku Mitsui Bldg. No.2
5.9
727
363
477
20
GSK Bldg.
(Note2)(Note2)(Note2)555
10Naka-Meguro GT Tower
533
4.4
281
386
Kowa Nishi Shinbashi Bldg. B(Note2)(Note2)(Note2)367
7
Nippon Steel Building No.2
4.5
555
344
348
6
Nihonbashi Muro-machi Center Bldg.
3.8
471
169
335
Takanawa 1-chome Bldg.
2.8
345
160
234
2
Mita City Bldg. （Note 7）(Note2)(Note2)(Note2)
271
212
Shinjuku Yocho-machi Bldg.
1.0
124
78
70
4
Nishi-Shinjuku Mitsui Building
0.5
67
34
48
1
Other Greater Tokyo
Nakano-Sakaue Sunbright Twin
(Note2)(Note2)(Note2)
248
Yokohama ST Bldg.
6.2
758
431
474
42
Tsukuba Mitsui Bldg.
3.5
433
309
260
58
Daido Life Omiya Bldg.
1.1
136
62
95
1
Matsudo City Bldg.
1.1
131
78
83
16
Inage Kaigan Bldg.
1.1
136
89
70
2
Other Cities
Sapporo Minami Nijo Bldg.
1.1
139
75
86
6
Daido Life Sendai Bldg.
2.0
245
130
147
5
Unix Bldg.
2.7
328
233
162
4
Niigata Telecom Bldg.
2.2
274
148
169
10
Hamamatsu City Bldg.
0.8
98
82
42
10
Sun Mullion NBF Tower
3.9
482
371
290
2
Sakai Higashi Center Bldg.
1.2
151
67
109
1
Otemae Center Bldg.
1.2
151
85
92
2
KyoumachiboriCenter Bldg.
0.5
57
35
31
1
Shijo Karasuma Minami Bldg.
0.9
109
62
73
1
Hakata Gion 21 Bldg.
1.3
159
101
84
4
Total
¥ 12,239
100.0¥ 6,548¥ 8,057¥ 1,167
Note 1 Percent of total revenue is the ratio of revenue from each office property to total revenues from all
office properties.
Note 2
Consent for disclosure was not obtained from tenants from whom rent revenue accounts for morethan 80% of total rent revenues for the property. However, relevant figures are included in the total.
Note 3
Net Operating Income of an individual property is calculated through the following formula:(Revenue from property leasing−Rental expenses)＋Depreciation and Amortization
Note 4
Figures stated above are based on NBF’s ownership interest.
Note 5
JFE Steel Corporation, who is the only tenant of JFE Bldg, is responsible for capital expenditures.
Note 6
Effective April 1, 2003, the name of this building changed (formerly: NKK Headquarters Bldg).
Note 7
Effective July 1, 2003, the name of this building changed to Sumitomo Densetsu Bldg.

28

181
181
181
181
148
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
181
-

Breakdown of Operating Expenses
Current period(January 1, 2003
- June 30, 2003)

OperatingExpensesReal
EstateTaxes

Building Office Repairs
andUtility Mainte- Managemenｔ
MainCharges nance
Costs Fee etc. tenance

Casualty
Land
Insurance
Other
Depreand&House
Expenses ciation
Trust
Rent
Charges(Yen in millions)Tokyo CBDs
JFE Bldg. (Note 2,3)
Shiba NBF Tower
Shinjuku Mitsui Bldg. No.2
GSK Bldg.
Naka-Meguro GT Tower
Kowa Nishi Shinbashi Bldg. B
Nippon Steel Building No.2
Nihonbashi Muro-machi Center Bldg.

Takanawa 1-chome Bldg.
Mita City Bldg. (Note 4)
Shinjuku Yocho-machi Bldg.
Nishi-Shinjuku Mitsui Building
Other Greater Tokyo
Nakano-Sakaue Sunbright Twin
Yokohama ST Bldg.
Tsukuba Mitsui Bldg.
Daido Life Omiya Bldg.
Matsudo City Bldg.
Inage Kaigan Bldg.
Other Cities
Sapporo Minami Nijo Bldg.
Daido Life Sendai Bldg.
Unix Bldg.
Niigata Telecom Bldg.
Hamamatsu City Bldg.
Sun Mullion NBF Tower
Sakai Higashi Center Bldg.
Otemae Center Bldg.
KyoumachiboriCenter Bldg.
Shijo Karasuma Minami Bldg.
Hakata Gion 21 Bldg.
Total
Note 1
Note 2
Note 3Note 4Note 5

¥ 719
837
363
(Note1)
281(Note1)344
169
160(Note1)¥ 281¥ ¥ ¥ 122¥ ¥ ¥ 14
¥ 0
72
52
112
61
35
94
7
95
72
44
69
38
12
11
4
(Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1)
0
40
104
3
1
0
(Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1)
51
37
48
29
39
3
1
44
20
41
25
0
5
0
26
23
20
19
19
5
0
(Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1)

¥ 302
309
113
141
134
83
137
33
49
62

78

12

11

13

6

11

-

1

0

24

34

7

-

10

2

0

-

0

0

15

(Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1)
61
62
57
47
49
6
4
26
53
44
22
14
6
7
8
7
11
7
5
1
1
9
10
11
7
8
0
0
1
14
22
16
7
5
2
0

124
146
137
22
30
23

(Note1)
431
309
62
78
89

75
13
130
20
233
40
148
23
82
9
371
48
67
9
85
13
35
5
62
8
101
15
¥ 6,548 ¥ 1,093

11
12
20
18
39
46
23
30
10
14
38
56
10
12
15
18
7
5
7
11
13
17
¥ 697 ¥ 1,006

7
13
16
14
5
24
8
8
3
6
8
¥ 625

6
25
22
12
15
15
1
4
4
2
19
¥ 408

0
¥ 95

1
1
2
3
1
5
1
1
1
1
2
¥ 101

2
0
1
0
2
5
0
0
0
1
0
¥ 158

23
33
66
43
26
178
25
26
8
27
27
¥ 2,366

Consent for disclosure was not obtained from tenants from whom rent revenue accounts for more than 80% of
total rent revenue of the property. However, relevant figures are included in the total.
JFE Steel Corporation, who is the only tenant of JFE Bldg, is responsible for costs of administration andmaintenance, repair, retention and renewal, etc. except for casualty insurance and real estate taxes.
Effective April 1, 2003, the name of this building changed (formerly: NKK Headquarters Bldg).
Effective July 1, 2003, the name of this building changed to Sumitomo Densetsu Bldg.
Figures stated above are based on NBF’s ownership interest.

29

5．Major Tenants Roster
Building leases in Japan are usually for a relatively short term (most commonly two years) andsubject to automatic renewals unless either party gives notice to the contrary. Such leases also
typically allow for termination by the lessee before the expiry of the term upon six months’ priorwritten notice. However, in Japan there also exists a special type of building lease known as “teiki
tatemono chintaishaku” which is for a fixed term that cannot be terminated by the landlord prior to
the expiry of its term or by the tenant without compensation to the landlord with regard to theremaining period. Such fixed term lease agreement may set a fixed rental amount that is not
subject to adjustment.
NBF’s ten major tenants by leased area as of June 30, 2003 are listed in the table set forth below.

Name of Tenants

Name of Building

LeasedsquaremetersExpiration
Date（Note 1）

Percent of
total
rentablearea

１

JFE Steel Corporation

JFE Bldg.

65,280March 31, 2011
（Note 2）

20.2%

２

GlaxoSmithKline. K.K.

GSK Bldg.

20,407

September 30, 2010
（Note 3）

6.3%

３

Fuji Xerox Co., Ltd.

Shinjuku Mitsui Bldg. No.2
/ Tsukuba Mitsui Bldg
/Nakano-Sakaue Sunbright Twin
/ Hamamatsu City Bldg.

18,032

March 31, 2004

5.6%

４

Matsushita Investment andDevelopment Co., Ltd.

Shiba NBF Tower

17,855September30,2004（Note 4）

5.5%

５

Nippon Steel Corporation

Nippon Steel Bldg. No2

15,333

November 30, 2009
（Note 5）

4.7%

６Mitsui Fudosan Co., Ltd.

Naka-Meguro GT Tower/ Nishi-Shinjuku Mitsui Building

15,202

March 31, 2012

4.7%

７

NTT Communications
Corporation

Kowa Nishi Shinbashi Bldg. B

8,493

March 31, 2005

2.6%

８

Sumitomo Life Insurance
Company

Yokohama ST Bldg. and other 5buildings

5,516

March 31, 2004

1.7%

９

Toden Kogyo Co., Ltd.

Takanawa 1-chome Bldg.

5,411

December 31,2004

1.7%

10

Dai Nippon Printing Co., Ltd.

Shinjuku Yocho-machi Bldg.

3,966

May 31, 2004

1.2%

Note 1
Note 2

Note 3The expiration date in cases where the tenant has several lease contracts with respect to real estate owned
by NBF indicates the earliest expiration date out of said contracts.
The lease contract with JFE Steel Corporation is of the abovestated “teiki tatemono chintaishaku” type;provided, however, that the lessee may terminate the contract by notifying the lessor in writing prior to theend of March during each of the years 2006 to 2008 with termination to be effective as of the end of Marchof the immediately following year. Also, the lessee may terminate the contract by payment of the amountequal to the rent for the remaining term of the lease contract. Further, as JFE Steel Corporation is
responsible for costs of administration and maintenance, repair, retention and renewal, etc. during the termof the contract, common area charges are not collected. Upon complete vacation due to the expiration or
termination of contract as stated above, JFE Steel Corporation will be, in principle, be released from theobligation to restore the premises to their original condition.
Although the term of the lease contract with Glaxo Smith Kline K.K. is relatively long compared with lease30

Note 4Note 5Note 6

contracts commonly used in Japan, it is not an abovestated “teiki tatemono chintaishaku” type of contract.
Glaxo Smith Kline K.K. may exercise its priority right to offer to purchase and negotiate during theapplicable period (being the two-month period commencing October 1 and ending November 30, during
each year of the period commencing October 1, 2002 and ending September 30, 2007). In the event thatthe lessee offers to purchase the GSK Building, it has the priority right to negotiate with NBF. Terms andconditions such as the price determination method etc. are separately set forth, but NBF is under noobligation to sell the building.
In connection with the consolidation of the Matsushita Electric Industrial Co., Ltd. group in the
Higashi-Shinagawa Seaside Forest Redevelopment Bldg. Matsushita Investment and Development Co., Ltd.
vacated its entire space in the Shiba NBF Tower effective August 17, 2003.
Nippon Steel Corporation's lease contract is a fixed-term lease contract which is valid during the remaining
term of the abovesaid contract. The leased square meter figure given for the Nippon Steel Building No. 2
indicates the total area consisting of the East Building, Maison New River and the West Building.
Percent of total rentable area is calculated by dividing the area leased by the tenant by the total leased area
(in square meters). Total rentable area and leased area (in square meters) are based on NBF’s ownershipinterest.

6．Other Assets
Real estate held in trust is included in the Selected Data by Property (Sec. 2). There are noother significant investment assets in the portfolio as of June 30, 2003 and December 31, 2002.

31

■ Capital Expenditures
1. Planning
NBF is planning the following capital expenditures for the renovation of the properties. The
amounts below include repairs and maintenance costs that will be expensed as incurred.
Moreover, in addition to a steady program of expenditures for construction, repair andrenovation of facilities, a program of renewal construction is being implemented in order toincrease competitive power in the market as well as to increase the level of tenant satisfaction
based on the results of tenant satisfaction surveys and neighboring competitive building
specification surveys etc.
Estimated Amounts
Payment for theProperty(Location)

Estimated
DurationObjective

Total
Amounts

Current Period

Cumulative(from January 1,

Amount2003 to June 30,

Paid

2003)

(Yen in millions)
Tsukuba Mitsui Bldg.
Shiba NBF Tower
Daido Life Omiya
Bldg.

Renewal of automatedsecurity system
Renovation work ofupper floors
Renovation of bicycle
parking area withinparking lot

From July 2003
To December 2003
From August 2003
To December 2003

¥ 118

¥ −

¥ −

1,443

−

−

34

−

−

From March 2004
To May 2004

2. Capital Expenditures for the Current Period
The following table sets forth the capital expenditures for the current period. NBF posted¥ 1,166 million in capital expenditures together with ¥ 408 million for repairs and maintenanceexpenses.
Name of Property
Shiba NBF Tower
Mita City Bldg. (Note)
Other buildings

Objective
Renewal work to maintain andimprove competitiveness
Leasehold improvements for new
tenantRenovations intended to improve
the level of tenant satisfaction

PeriodExpenditure(Yen in millions)740

From January 2003
To June 2003

Total
Note

212
215
¥ 1,167

Effective July 1, 2003, the name of this building changed to Sumitomo Densetsu Bldg.

32

3. Cash Reserve for Capital Improvements
NBF accumulates cash reserves from cash flows to prepare for large-scale mid-term tolong-term capital improvements and repairs and maintenance that will be conducted inaccordance with NBF’s business plan for each property.
As ofJune 30, 2003

Reserve balance at the beginning of the period. . . . . . . . .
Amount accumulated in current period . . . . . . . . . . . . . .
Withdrawal from reserves in the current period . . . . . . .
Amount carried forward . . . . . . . . . . . . . . . . . . . . . . . . .

As ofDecember 31,2002(Yen in millions)¥ 1,984¥ 1,409
1,635
934
1,505
359
¥ 2,114¥ 1,984

Note 1 Upon the acquisition of Real Estate etc., NBF also assumed accumulated reserves of ¥ 751
million as of June 30, 2003 for capital expenditures from previous owners, which were notincluded in the above accumulated amounts.
Note 2 With respect to the first as well as the current period, the amount of reserves jointly owned
together with other owners attributable to the ownership interests of said other owners has
been excluded and the figures represent only the amount of reserves attributable to NBF'sownership interest.

■

Expenses regarding Entrustment etc.
The following table sets forth the breakdown of entrustment fees etc. paid by NBF.
For the six months ended
Item

June 30, 2003

Asset management fees . . . . . . .
Asset custody fees . . . . . . . . . . .
Agent fees (stock transfer,accounting and administrative)
Director’s remuneration . . . . . . .
Auditor’s fees . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . .
Total

December 31, 2002
(Yen in millions)

June 30, 2002

¥ 501
13
47

¥ 497
12
38

¥ 477
11
39

11
12
64
¥ 648

11
12
55
¥ 625

11
9
82
¥ 629

Note: In addition to the amounts stated above, there are asset management fees of ¥ 68 million
for the period from January 1, 2003 to June 30, 2003, ¥ 63 million for the period from July
1, 2002 to December 31, 2002 and ¥ 96 million for the period from January 1, 2002 toJune 30,2002 related to investment in properties, which were booked on each property.

33

■Trading Activities during the Current Period
1. Trading of Real Estate and Real Estate held in Trust(Yen inmillions)
Transferred

AcquiredName of Building
Naka-Meguro GT Tower

Tsukuba Mitsui Bldg.
Total
Note 1Date
February 3, 2003
March 28, 2003

AcquisitionPrice
13,7632,010¥ 15,773

Date
−
−
−

Transfer Book
Price
Value
−
−
−
−
−
−

Capital
Gain/
Loss
−
−
−

“Acquisition price” does not include national consumption tax, regional consumption tax andmiscellaneous costs of acquisition.

Note 2The Naka-Meguro GT Tower transaction was a direct acquisition of an interest in real estate while the
Tsukuba Mitsui Bldg. transaction was an acquisition of a trust beneficiary interest.

2. Trading of Other Assets Including Total Amount and Transactions
Other major assets besides real estate and real estate held in trust stated above consist mostly ofbank deposits or bank deposits included in assets held in trust.

34

3. Related Parties Transactions
1. Ongoing Transactions

Category

Amount of Purchase Price etc. (Note 2) (Note 3)
Purchase Price etc. (Yen in millions)

Sale Price etc. (Yen in millions)−

15,773
Total AmountAmount of purchases from related

Amount of sales to related parties

parties
15,773 (100.0)

−

( − )

Breakdown of transactions with related parties etc.
Mitsui Fudosan Co., Ltd.

15,773 (100.0)

−

( − )

Total:

15,773 (100.0)

−

( − )

2. Fees Paid for the period from January 1, 2003 to June 30, 2003
Description of Transactions with Related Parties

Total Fees Paid
Amount of(A)
Payment(B)(Yen in(Yen
inmillions)
Category
millions)
Paid toOffice management fees etc.
655 Mitsui Fudosan Co., Ltd.
650
NBF Office Management Co., Ltd.
5
Property transfer fees
3 Mitsui Fudosan Co., Ltd.
3
Property maintenance fees
1,006 Mitsui Fudosan Co., Ltd.
176
Daiichi Seibi Co., Ltd.
170
MF Building Management Co., Ltd
11
NBF Office Management Co., Ltd.
1
Mitsui Fudosan Housing Lease Co., Ltd.
0
Leasing related service fees
143 Mitsui Fudosan Co., Ltd.
10NBF Office Management Co., Ltd.
3
Fees related to issues of
Daiwa Securities SMBC Co., Ltd.
95
40
NBF bonds（Note 4）

B/A

99.2%
0.8%
100.0%
17.5%
16.9%
1.1%
0.1%
0.0%
7.1%
2.1%
42.1%

Note 1 “Related parties” mean parties defined in Article 20 of the government ordinance regarding theInvestment Trust Law of Japan, principally, parties related to an asset management company.
Note 2 Figures set forth above are purchase prices taken from sale and purchase agreements and do not include¥95,539,000 paid to Mitsui Fudosan Co., Ltd. in settlement of fixed assets taxes etc.
Note 3 Figures in parentheses indicate percentages of total purchase prices and sale prices respectively.
Note 4This item sets forth fees paid directly by NBF to Daiwa Securities SMBC Co., Ltd. in connection withofferings of NBF's No. 2 Unsecured Bonds. In addition to this item, a portion of the fees paid by NBF to athird party (an underwriting securities company) in connection with offerings of NBF's No. 3 Unsecured
Bonds was paid by said underwriter to another securities company in connection with the private placementof said Bonds pursuant to a separate agreement with said securities company.

Note 5In addition to the above fees paid, the following have been paid to related parties for repair and maintenance
work.

35

(Yen in millions)

Daiichi Seibi Co., Ltd¥ 86

Mitsui Fudosan Co., Ltd.

30

MF Building Management Co., Ltd.

9

Mitsui Fudosan Housing Lease Co., Ltd.

2

Mitsui Designtech Co., Ltd.

1

36

Ⅱ

Financial Statements
Independent Auditors’ Report
Balance Sheets
Statements of Income
Statements of Shareholders’ Equity
Statements of Cash Flows
Notes to Financial Statements

37

NIPPON BUILDING FUND INC.
BALANCE SHEETSAs of June 30, 2003 and December 31, 2002

As of
As of
December 31,
June 30,
2002
2003(Yen in millions)

AssetsCurrent Assets:
Cash and cash equivalents
Tenant receivables
Consumption tax refund receivables and other assets
Total current assets
Investment properties:
Land including trust accounts
Building and improvements including trust accounts
Other tangible assets
Less: accumulated depreciation
Leasehold rights in trust accounts and other intangible
assetsTotal investment properties-net
Other assets
Total Assets
Liabilities
Current Liabilities:
Short-term loans
Long-term debt due within one year
Accounts payable
Rents received in advanceAccrued expenses and other liabilities
Total current liabilities
Long-term debt
Tenant security deposits
Other liabilities
Total Liabilities
Shareholders’ Equity
Common shares, non-par value
Shares Authorized: 2,000,000 shares
Shares Issued and Outstanding: 280,700 shares
Retained Earnings
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity¥ 33,448
160
281
33,889¥ 31,854
105
205
32,164

166,297
96,241
1,724(8,539)159,446
86,051
1,292(6,176)

16,818272,541
1,258¥ 307,688))¥ 26,950
8,000
1,807
1,820
500
39,07794,00021,36930
154,476

16,815
257,428
1,133¥ 290,725

148,899

148,899))
4,562
153,461¥ 290,725

4,313
153,212¥ 307,688

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

39¥ 38,450
−
1,722
1,747
468
42,38772,00022,852
25
137,264NIPPON BUILDING FUND INC.
STATEMENTS OF INCOME
For the six months ended June 30, 2003 and Dcember 31, 2002 and June 30, 2002

For the six months ended
June 30, 2003

December 31, 2002

June 30, 2002

(Yen in millions)

Revenues:
RentalOthersTotal Revenues
Operating Expenses:
Property management fees
Real estate taxes
Insurance
Repairs and maintenance
Other rental expenses
Depreciation and amortization
Asset management fees
Other expenses
Total Operating Expenses
Interest income
Other income
Interest expense
Amortization of deferred bond issue costs
Other expenses
Income Before Income Taxes
Current and deferred income taxes
Net Income¥¥

11,111
1,128
12,239
1,684
1,093
47
408
950
2,366
501
147
7,196
1
−
(679)
(27)
(24)
4,314
(1)
4,313

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

40¥

10,366
1,480
11,846
)
1,542
974
47
521
875
2,072
496
129
6,656
1
1
(585)
(6)
(38)
4,563
(1)
4,56¥ 4,562¥

10,427) 832
11,259

1,545
977
52
315
787
1,947
477
) 152
6,252
3
10
(521)
(6)
―
4,493
(1)
) ¥ 4,492

NIPPON BUILDING FUND INC.
STATEMENTS OF SHAREHOLDERS’ EQUITY
For the six months ended June 30, 2003 and December 31, 2002 and June 30, 2002

(Yen in millions)
Number ofCommon Common Retained
SharesShares Earnings
Balance as of December 31, 2001 . . . . . . . . . . . . . . . . . . .

Total

280,700¥148,899¥5,341¥154,240

Cash Dividends declared――（5,341）（5,341）

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

―

―

4,492

4,492

Balance as of June 30, 2002 . . . . . . . . . . . . . . . . . . . . . . . . 280,700

148,899

4,492

153,391

Cash Dividends declared――(4,492)(4,492)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

―

―

4,562

4,562

Balance as of December 31, 2002 . . . . . . . . . . . . . . . . . . .

280,700

148,899

4,562

153,461

Cash Dividends declared――（4,562）（4,562）

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

―

―

4,313

4,313

Balance as of June 30, 2003 . . . . . . . . . . . . . . . . . . . . . . . . 280,700¥148,899¥4,313¥153,212

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

41

NIPPON BUILDING FUND INC.
STATEMENTS OF CASH FLOWSFor the six months ended June 30, 2003 and December 31, 2002 and June 30, 2002

For the six months ended
June 30, 2003

December 31, 2002

June 30, 2002

(Yen in millions)
Cash Flows from Operating Activities:
Income before income taxes
Depreciation and amortization
Amortization of deferred bond issue costs
Interest expense
Tenant receivables
Accounts payable
Rents received in advanceCash payments of interest expense
Other-net
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities:
Payments for purchases of investment properties
Proceeds from tenant security deposits
Payments for tenant security deposits
Refunds from security deposits paid to lessors
Payments for security deposits paid to lessors
Payments for purchases of other assets
Net Cash Used in Investing Activities
Cash Flows from Financing Activities:
Proceeds from short-term loans
Repayment of short-term loans
Proceeds from long-term debt
Payments for deferred bond issue costs
Payment of dividends
Net Cash Provided by Financing Activities
Net Change in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of theperiodCash and Cash Equivalents at the end of the period

¥

4,314
2,366
27
679
(55)
85
73
(618)
(105)
6,766

¥

¥

(17,472)
2,914(4,397)
21
(10)
(42)
(18,986)

4,563
2,072
6
585
78
334
79
(557)
137
7,297
)
(14,991)
2,979(1,781)6(9)(42)(13,838)

125,150(136,650)
30,000(126)(4,560)13,814
1,594

117,100(112,100)
5,000―(4,488)5,512(1,029))96,750(84,200)) 9,000―(5,322)) 16,228) 5,216

31,85432,883) 27,667¥ 33,448¥ 31,854¥ 32,883

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

42

4,493
) 1,947
)6
) 521
(74)
) 257
) 146
(496)
2,667
9,467
(20,806)) 1,501
(512)
14
(1)
(675)
(20,479)

NOTES TO FINANCIAL STATESMENTS
Nippon Building Fund Inc.
June 30, 2003, December 31, 2002 and June 30, 2002

Note 1 –Organization and Basis of Presentation
Organization
Nippon Building Fund Inc. (formerly: "Office Building Fund of Japan, Inc." The current namewas adopted on March 14, 2003, hereinafter "NBF") was formed on March 16, 2001 as aninvestment corporation under the Investment Trust Law of Japan with Mitsui Fudosan Co., Ltd., The
Chuo Mitsui Trust and Banking Co., Ltd., and Nippon Building Fund Management Ltd. (formerly:"Office Building Fund Management Japan Limited", hereinafter "NBFM") acting as sponsors.
Registration with the Kanto Local Finance Bureau of the Ministry of Finance was completed on May
10, 2001 and NBF started acquisition of office properties on May 23, 2001.
NBF is an externally managed real estate fund, formed as an investment corporation. NBFM, as
NBF’s asset management company, is engaged in acquiring, managing, leasing, and renovating officeproperties. Mitsui Fudosan Co., Ltd. currently owns 43 % of NBFM while Sumitomo Life Insurance
Company owns 35% and the remaining 22% is mainly owned by financial institutions.
On September 10, 2001, NBF had raised approximately ¥50,000 million through an initial public
offering of common shares. Those common shares are listed on the J-REIT section of the Tokyo
Stock Exchange.
As of June 30, 2003, NBF had ownerships or beneficiary interests in 29 office properties
containing approximately 340,497 rentable square meters of office space. As of June 30, 2003, NBF
had leased office space to 446 tenants engaged in a variety of businesses. The occupancy rate for the
Office Properties was approximately 94.8%.

Basis of Presentation
NBF maintains its records and prepares financial statements in Japanese yen and in accordancewith the provisions set forth in the Investment Trust Law of Japan and the Securities and Exchange
Law of Japan, and in conformity with accounting principles generally accepted in Japan. Certain
accounting principles and practices generally accepted in Japan are different from International
Accounting Standards and standards in other countries in certain respects as to application anddisclosure requirements. Accordingly, the accompanying financial statements are intended for use by
those who are informed about Japanese accounting principles and practices. The accompanying
financial statements have been translated from the audited financial statements that were prepared forJapanese domestic purposes from accounts and records maintained by NBF and were filed with
Local Finance Bureau of the Ministry of Finance as required by the Securities and Exchange Law.
NBF does not prepare consolidated financial statements, as NBF has no subsidiaries.
In preparing the accompanying financial statements, certain reclassifications and modifications
have been made in the financial statements issued domestically in order to present them in a form
that is more familiar to readers outside Japan. The statements of shareholders’ equity and cash flows
have been prepared for the purpose of inclusion in the accompanying financial statements, althoughsuch statements were not required for domestic purposes and were not filed with regulatory
authorities.

43

Note 2 –Summary of Significant Accounting Policies
Cash and Cash Equivalents
NBF considers all highly liquid investments with original maturity of three months or less to be
cash and cash equivalents.

Investment Properties
Investments properties are recorded at cost, which included the allocated purchase price andrelated costs and expenses for acquisition of the office properties and the beneficiary interests ofproperties in trust. Property and equipment balances are depreciated using the straight-line method
over estimated useful lives. The estimated useful lives of the buildings vary from 16 to 50 years.
Costs related to the renovation, construction and improvement of properties are capitalized.
Expenditures for repairs and maintenance which do not add to the value or prolong the useful life ofa property, are expensed as incurred.

Deferred Bond Issue Costs
Deferred bond issue costs are amortized using the straight-line method over three years.

Income Taxes
Income taxes are accounted for on the basis of income for financial statement purposes. The tax
effect of temporary differences between the amounts of assets and liabilities for financial statements
and for income tax purposes is recognized as deferred income taxes.

Real Estate Taxes
Real estate taxes are imposed on properties on a calendar year basis. NBF is allocated the portionof the real estate taxes related to the period following the purchase date of each property through theend of the year and the equivalent amounts of those allocated portions are capitalized as part of theacquisition costs of the relative properties. Capitalized real estate taxes amounted to ¥96 million forthe period ended June 30, 2003 and ¥13 million for the period ended December 31, 2002 and ¥182
million for the period ended June 30, 2002, respectively.

Revenue Recognition
NBF operates office properties that are rented to tenants on lease terms of generally two years,
with monthly payments due in advance. Rental and other property income is recorded when due fromtenants and is recognized monthly as it is earned. Common area charges provided for in tenant leases
are recognized as income when earned and their amounts can be reasonably estimated.

Accounting Treatment of Beneficiary Interests in Trust Assets including Real Estate
For trust beneficiary interests in real estate, all accounts of assets and liabilities within assets intrust as well as all income generated and expenses incurred from assets in trust are recorded in therelevant balance sheet and income statement accounts.

44Note 3 – Schedule of Other Tangible Assets
Other tangible assets as of June 30, 2003 and December 31, 2002 consisted of the following:
As of June 30, 2003
Acquisi-tion
Costs
Structures. . . . . . . . . . ..
Machinery and equipment. . . . . . . . . . . .
Tools furniture and fixtures . .. . . . . . . . .
Structures in trust..............
Machinery and equipment in trust . . . . .
Tools, furniture and fixtures in trust . . . . . . .
Construction in process. . . . . . . . . .

Total

¥ 314
26
4
396
562
244
178
¥1,724

Accumu-latedDepreci-ation¥ (16)
(3)
(1)
(96)
(123)
(97)
¥ (336)

As of December 31, 2002
(Yen in millions)
AccumuAcquisiBook-lated
Book
-tion
Value
Depreci
Value
Costs-ation
¥ 298
¥
91
¥
(1)
¥ 90
23
26
(0)
26
3
4
(0)
4
300
379
(72)
307
439
538
(92)
446
147
230
(72)
158
178
24
24
¥ 1,388¥1,292¥ (237)¥1,055Note 4 – Shareholders’ Equity
NBF issues only non-par value shares in accordance with the Investment Trust Law of Japan and allof the issue price of new shares is designated as stated capital. NBF maintains at least ￥50 million as
the minimum net assets as required by the Investment Trust Law of Japan.

Note 5 – Short-Term Loans and Long-Term Debts
Short-term loans consist of short-term notes and short-term borrowings under loan agreements.
The annual interest rates on short-term loans outstanding are floating rates and at June 30, 2003 andDecember 31, 2002 mainly ranging from 0.48% to 0.52% and from 0.47% to 0.53%, respectively.
Long-term debt is fixed rates and as of June 30, 2003 and December 31, 2002 consisted of the following:(Yen in millions)
As of
As of
December 31,
June 30,
2002
2003
Unsecured loans due 2005 to 2012 principally from banks andinsurance companies with interest rates mainly ranging
from 0.7% to 2.2%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 74,000¥ 64,000
0.68% unsecured bonds due 2004. . . . . . .. . . . . . . . . . . . . . . . . .
8,000
8,000
0.75% unsecured bonds due 2007. . . . . . .. . . . . . . . . . . . . . . . .
10,000−2.00% unsecured bonds due 2018. . . . . . .. . . . . . . . . . . . . . . . .
10,000−102,000
72,000Less: amount due within one year
8,000−
¥ 94,000¥ 72,000
The annual maturities of long-term debt as of June 30, 2003 were as follows:(Yen in millions)2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 8,000
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,0002006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,000
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75,000During the period ended June 30, 2003, NBF obtained committed credit lines of ¥30 billion with45

certain financial institutions to reduce refinancing risk. The unused amount of such committed credit
lines was ¥30 billion at June 30, 2003.

Note 6 –Rental Revenues and Expenses
Rental revenues and expenses for the periods ended June 30, 2003, December 31, 2002 and June 30,
2002 were as follows:
For the six months ended
June 30, 2003

December 31, 2002

June 30, 2002

(Yen in millions)

Revenues from Property Leasing :Rental:Rental revenues . . . . . . . . . . . . . . . . . . .
Common area charges. . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . .
Others:Parking lots . . . . . . . . . . . . . . . . . . . . . .
Facility charge . . . . . . . . . . . . . . . . . . . .
Incidental income . . . . . . . . . . . . . . . . . .
Cancellation fees. . . . . . . . . . . . . . . . . . .
Miscellaneous income . . . . . . . . . . . . . .
Subtotal..................
Total revenues from property leasing
Rental Expenses:
Property management fee . . . . . . . . . . . .
Real estate taxes . . . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . .
Insurance . . . . . . . . . . . . . . . . . . . . . . . .
Other rental expenses . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . .
Total rental expenses. . . . . . . . . .
Operating Income from Property
Leasing Activities¥ 9,598
1,448
65
11,111¥ 8,925
1,404
37
10,366¥ 8,971
1,422
34
10,427

281
61
555
213
18
1,128
12,239

255
59
563
585
18
1,480
11,846

248
54
488
13
29
832
11,259

1,684
1,093
408
47
950
2,366
6,548

1,542
974
521
47
875
2,072
6,031

1,545
977
315
52
787
1,947
5,623

¥ 5,691¥ 5,815¥ 5,636

Note 7 –Income Taxes
NBF is subject to income taxes in Japan. The effective tax rate on NBF's income based on applicable
Japanese tax law was 0.02% for the period ended June 30, 2003 and approximately 0.02% for theperiod ended December 31, 2002 and approximately 0.02% for the period ended June 30, 2002. The
following table summarizes the significant differences between the statutory tax rates and NBF's
effective tax rates for financial statement purposes.

46

For the six months ended
June 30, 2003

Statutory effective tax rate . . . .
Deductible dividends paid . . . . .
Others . . . . . . . . . . . . . . . . . . . .
Effective tax rate . . . . . . . . . . . .

December 31, 2002

39.39)%(39.38)%0.01
0.02)%

June 30, 2002

39.39)%(39.37)%0.00
0.02)%

39.39)%(39.37)%0.00
0.02)%

NBF was established as an investment corporation under the Investment Trust Law of Japan, and aslong as an investment corporation distributes to its shareholders at least 90% of taxable income for theperiod and other requirements are met, an investment corporation is allowed to deduct its dividends
from taxable income under Japanese tax regulations.

Note 8– Per Share Information
Information about earnings per share for the periods ended June 30, 2003, December 31, 2002 andJune 30, 2002 and net assets per share as of June 30, 2003 and December 31, 2002 was as follows.
The computation of earnings per share and net assets per share is based on the weighted average
number of common shares outstanding during the period.
For the six months ended
June 30, 2003

December 31, 2002

June 30, 2002

（Yen）

Earnings per Share of Common Shares:
Net income:Weighted average number ofcommon shares outstanding:¥ 15,367¥ 16,253) ¥ 16,003

280,700

280,700

)

As of

As of

June 30, 2003

December 31, 2002

Net Assets Per Share. .. . . . . . . . . . . . . . .

¥ 545,823

280,700¥ 546,710

Effective April 1, 2002, NBF adopted the new accounting standard for earning per share (AccountingStandards Board Statement No. 2, "Accounting Standard for Earning Per Share", issued by the
Accounting Standards Board of Japan on September 25, 2002). For the period ended December 31,
2002, as well as for the current period, earnings per share calculated in accordance with the new
accounting standards and the related guidance were identical with those calculated in accordance withthe previous accounting method.

47

Note 9–Leases
NBF leases its real estate properties to outside parties under non-cancelable operating leases. As ofJune 30, 2003 and December 31, 2002, the future lease revenues under the non-cancelable operatingleases are as follows:
As of June 30, 2003

As of December 31, 2002

(Yen in millions)¥ 6,609
18,390¥ 24,999

Due within one year………………….
Due after one year……………………
Total………………………………

¥

4,948
14,225¥ 19,173

Note 10– Significant Subsequent Events
Cash distribution
As of August 5, 2003, the Board of Directors of NBF resolved to effect payment of a cash
distribution of ¥15,367 per share aggregating ¥ 4,313 million to shareholders of record on June 30, 2003.

48

Nippon Building Fund Inc.
Corporate Data
Corporate Office:7-2, Yaesu 2-chome, Chuo-ku, Tokyo, 104-0028, Japan+81-3-3281-8810
http://www.nbf-m.com/nbf/
Date of Inception:
March 16, 2001
Capital:Contributed capital and common shares issued and outstanding as of June 30, 2003:¥148,899 million
280,700 shares
Shareholders:
12,915 (As of June 30, 2003)
Transfer Agent
The Chuo Mitsui Trust and Banking Co., Ltd.
33-1, Shiba 3-chome, Minato-ku, Tokyo, 105-8574, Japan
Business Office of the Transfer Agent
Stock Transfer Agency Department of the Chuo Mitsui Trust and Banking Co.,Ltd.
8-4, Izumi 2-chome, Suginami-ku, Tokyo, 168-0063, Japan+81-3-3323-7111
Independent Public Accountants
Asahi & Co.
Asahi Center Building
1-2, Tsukudo-cho, Shinjuku-ku, Tokyo, 162-8551, Japan
Investor Relations
For further information, please contact our Asset Management company:
Investor Relations of Financial Department
Nippon Building Fund Management Japan Ltd.
7-2, Yaesu 2-chome, Chuo-ku, Tokyo, 104-0028, Japan+81-3-3281-8810