Nippon Accommodations Fund Inc.
29th Period (March 2020 - August 2020) Investor Presentation
Q&AQAQAQA

I hear that home buyers are moving from the city center to the suburbs. What can you
tell us about the properties owned by the Investment Corporation?
While rent growth and the conclusion of contracts are showing sign of weakness inurban areas where rents have risen over the past year or two, there has been no
noticeable movement of people from the city center to the suburbs.
High-end units appear to be struggling in urban areas. What do you see as the factors
for this?
Rather than units at the high end of the spectrum, properties with high unit rents aregoing through an adjustment phase. Looking at the Okawabata Apartment
Communities, for example, while in the high range in terms of total rent, unit rents are
not that high and occupancy is strong. There is an impression that such properties assingle-type units in urban areas where rents are high even when the total rent is not, arestruggling a bit. The likelihood is that demand for more expensive units will decline asvacancies increase in the market.
What is your outlook on occupancy rates going forward?
As economic activity picks up contracts concluded can be expected to increase together
with contract cancellations. As a result, we do not anticipate a sharp rise in occupancy
rates. Occupancy rates are projected to recover slowly from February to March.

QA

What is the status of new asking rents?
We understand that there has been an adjustment for properties that have seen
significant rent increases in the last year or two, and current asking rents are roughlyaround 2018 levels. If tenants who moved in before this time are replaced, a positive
return can be expected after replacement. If, on the other hand, tenants who moved inrecently are replaced, we would expect asking rents to be lower.

Q

Is there an increase in corporate contract cancellations due to such factors as thedeterioration in the economic environment?
In the cash of the Investment Corporation’s corporate contracts, employees tend to look
for a unit on their own rather than company’s leasing in bulk. Having said this, contracts
in the name of the employer are relatively common. We have not seen any majorchanges in either cancellations or the percentage of corporate contracts.

AQ

If occupancy rates are weaker than expected in the future, is there a chance that steps

Awill be taken to accelerate the acquisition of new properties in order to stabilize
distributions?
The purchase and sale market remains tight, with sellers also looking for a high price.
This makes it difficult to acquire from the general market. In the case of a property saleby a sponsor, we would actively consider acquisition.

■ This document is intended for informational purposes, and is not intended to sell or solicit
an offer to buy or sell any security or other financial instrument of the Investment
Corporation.
■ Unless explicitly indicated, the information provided in this document does not constitutethe disclosure or asset management reports required under the Financial Instruments andExchange Act or laws relevant to investment trusts or investment corporations.
■ Nippon Accommodations Fund Inc. has exercised due care in providing the information inthis document, but does not guarantee its accuracy or completeness.
■ The information in this document contains future projections, but such statements do notguarantee future performance.
■ The Investment Corporation is not responsible for updating the information in thisdocument. The information in this document may be changed without prior notice.
REIT Management Company: Mitsui Fudosan Accommodations Fund Management Co., Ltd.
(Financial Instruments Firm: Kanto Finance Bureau (registration) No. 401
Member of the Investment Trusts Association, Japan)