April 14, 2009

Financial Results for the Fiscal Period
From September 1, 2008 to February 28, 2009
Nippon Accommodations Fund Inc. (NAF) is listed on the Tokyo Stock Exchange (J-REIT) withthe securities code number 3226. (Website: http://www.naf-r.jp/english/)Representative Executive Director:
Asset Management Company:
Representative President and CEO:Inquiries:

Nobuyuki Nakai
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Nobuyuki Nakai
Morio Shibata, Director and Chief Financial Officer
Tel: +81-3-3246-3677
Scheduled Filing Date of Securities Report:
May 29, 2009Scheduled Commencement Date of Cash Distribution Payment: May 15, 2009

1. Business Results for the Fiscal Period from September 1, 2008 to February 28,2009(1) Operating Results(in millions of yen, rounded down; except as noted)
Total revenue

Operating income(%)

Income before incometaxes

(%)

(%)

For the period endedFebruary 28, 2009

4,508

0.2

2,248

1.6

1,656

0.9

August 31, 2008

4,498

9.9

2,212

5.2

1,642

0.7

IncomebeforeIncomebeforeincomeNet income Net income/incomeper unit
net assets
taxes/
taxes/
total assets operating
incomeNet income(%)

(yen)

(%)

(%)

(%)

For the period ended
February 28, 2009

1,655

0.9

14,587

2.6

1.1

36.7

August 31, 2008

1,641

0.7

14,461

2.6

1.2

36.5

(Percent figures show changes from previous period)

1(2) Distributions(in millions of yen, rounded down; except as noted)
Distribution
per unit

Distribution in
Total
excess of
distributions inDistributions/
Payout ratio
earnings
excess of
net assets
per unit
earnings
(yen)
(%)
(%)

Total
distributions(yen)

For the period ended
February 28, 2009

14,587

1,655––

99.9

2.6

August 31, 2008

14,461

1,641––

99.9

2.6

Notes:
1. The payout ratio is rounded down to the nearest first decimal place.
2. “Distribution per unit” does not include distribution in excess of earnings per unit.

(3) Financial Position(in millions of yen, rounded down; except as noted)

Total assets

Net assets

Net assets/
total assets

Net assets perunit

(%)

(yen)

42.7

551,939

As ofFebruary 28, 2009

146,665

62,634

August 31, 2008

146,666
62,61942.7551,813
Note: Net assets as of February 28, 2009 and August 31, 2008 were respectively ¥62,634 millionand ¥62,619 million.

(4) Cash Flow(in millions of yen, rounded down; except as noted)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents

For the period ended
February 28, 2009

2,576

(125)

(1,639)3,999

August 31, 2008

2,478

(17,644)

14,8683,1882

2. Forecasts for the Fiscal Period from March 1, 2009 to August 31, 2009
(in millions of yen, rounded down; except as noted)

For the period ending

August 31, 2009

DistributionIncome
Distribution in excess ofbefore
Net income
per unit earnings perincome taxesunit

Totalrevenue

Operatingincome

(%)

(%)

4,555 1.0

2,225 (1.0)

(%)

(%)

(yen)

(yen)

1,578 (4.7) 1,577 (4.7)

13,900-(Percent figures show changes from previous period)

Notes:
1. “Distribution per unit” does not include distribution in excess of earnings per unit.
2. Projected net income per unit for the fiscal period ending August 31, 2009 is ¥13,900.

3. Other
1. Changes in significant accounting policies:(1) Changes due to revisions in accounting standards and others: None
(2) Changes other than in the above item (1): None
2. Number of investment units issued(1) The number of investment units issued (including treasury investment units) as of theperiod-end:
As of February 28, 2009:

113,480 units

As of August 31, 2008:

113,480 units(2) The number of treasury investment units as of the period-end:
As of February 28, 2009:- units

As of August 31, 2008:- units

Note:
Net income per unit is calculated by dividing net income by the weighted average number ofinvestment units: 113,480 units as of February 28, 2009, and 113,480 units as of August 31,2008.
Disclaimer:
The above forecasts are based on information currently available to NAF and on certain
assumptions deemed to be reasonable. Actual operations may differ substantially due to anumber of factors.

36th Period (February 2009) Overview of Operating Results(in millions of yen, rounded down; except as noted)

Number ofoperating days
Total revenue
Income before
income taxes
Net income
Distribution perunit (yen)Number ofinvestment
properties
Averageoccupancy rate atend of period (%)

Comparison withthe 5th Period(1)-(2)

181

Result of the 5thPeriod(August 2008)
(2)
184

4,508
1,656

4,543
1,642

4,498
1,642

1014

1,655
14,587

1,642
14,4701,641
14,461

14
126

44

44

44

096.2

95.0

96.00.2

Result of the 6thPeriod(February 2009)(1)
181

Forecast of the6th Period(3)

Overview of Performance and Distribution
In the period under review, NAF recorded total revenue of ¥4,508 million, operating income of¥2,248 million, income before income taxes of ¥1,656 million and net income of ¥1,655 million. Inaddition to the above, NAF has decided to distribute nearly the entire amount of earnings inaccordance with the Distribution Policy (Article 34 of the Articles of Incorporation) set forth by NAF.
The distribution per unit was ¥14,587.

6th Period (February 2009) Overview of Investment
External Growth (Acquisition of properties)
No new properties were acquired during the period under review. NAF held 44 properties in its
assets at the end of the period and the total acquisition price was ¥140,000 million.

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Internal Growth (Management and operation of properties held by NAF)
Mitsui Fudosan Housing Lease Co., Ltd., the master property management company (below,“Master PM”), and the asset management company collaborate in the management of properties
held by NAF with the aim of implementing effective management and operation activities inaccordance with regional characteristics and the individual features of each property. These
include efforts such as rapid management and operations by the Master PM applying the portfolio
management system, tenant recruiting activities suited to the circumstances of individualproperties, the streamlining of management cost reduction efforts, interior renovations atOkawabata Apartment Communities, one of the principle properties of NAF, and provide tenant
services corresponding to various needs in accordance with the results of resident questionnaires
concerning all properties.
Financial Strategy (Overview of funds procurement)
During the period under review, NAF refinanced its loans taking into account market trends andinterest rate levels. As a result, total interest-bearing debt at the end of the period amounted to¥81,000 million, unchanged from the end of the previous period, with a 55.2% LTV (loan-to-valueratio). Also, the long-term, fixed-rate loans to total interest-bearing debt ratio at the end of theperiod was 64.2% (ratio excluding long-term loans due within one year: 59.3%).
A shelf-registration statement of investment corporation bonds in public offering was filed at theKanto Local Finance Bureau in July 2007. An overview of the shelf-registration statement is given
below. The remaining balance of the planned issuance amount at the end of the period is ¥90,000
million.
Planned issuance amount
Scheduled period of issuancePurpose for funds

Up to ¥100,000 million
From July 18, 2007 to July 17, 2009
Acquisition of new specified assets (same meaning as definedin Article 2, Paragraph 1 of the Investment Trust and Investment
Corporation Act of Japan), repayment of borrowings, repaymentof tenant security deposit, payments for maintenance andrenovation, and operational use

Rating of NAF as of February 28, 2009 is as follows.
Rating agency
Moody’s Investors Service Inc.
Rating and Investment Information, Inc.
Standard and Poor’sRating subject
Issuer credit rating
Issuer credit rating
Long-term corporate
Short-term corporateRatingA 1 (*)A A (Trend of rating: Stable)
A + (Outlook for rating: Stable)
A -1*Moody’s Investors Services Inc. announced on January 15, 2009, that it may revise downward its
rating of NAF.

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Forecasts of Investment Performance
The forecasts for the 7th period (from March 1, 2009 to August 31, 2009) are as follows.
(in millions of yen, rounded down; except as noted)

Total revenue
Income before income taxes
Net income
Distribution per unit (yen)Distribution in excess of earnings per unit (yen)

4,555
1,578
1,577
13,900―Notes: Underlying assumptions of forecasts
Investment assets:

NAF is assuming the number of properties at the end of the 7thperiod will be unchanged (by, for example, acquisition of newproperties or sale of existing properties) from 44 properties, which
was the number as of April 14, 2009.

Interest-bearing debt:

NAF is assuming interest-bearing debt at the end of the 7th period
will be unchanged from ¥81,000 million, which was theinterest-bearing debt as of April 14, 2009.

Number of units issued:

A quantity of 113,480 units outstanding as of April 14, 2009(assumption of no additional unit issuance) is assumed.

The forecasts are the figures calculated based on the above assumptions at the time ofpreparation of this information. Therefore, actual total revenue, income before income taxes, net
income, distribution per unit and distribution in excess of earnings per unit may be subject tochange due to acquisition or sale of properties in future, fluctuation in the real estate market orother changes in the environment in which NAF operates. Accordingly, the forecasts are not aguarantee of any cash distribution amount.

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Management Policy and Issues for the 7th Period Onward
NAF has always aimed to maximize its unitholder value through investments in accommodation
properties and the utilization of the Mitsui Fudosan Group as well as the formulation andmanagement of a high quality portfolio centered on rental residential properties located in the 23
wards of Tokyo.
From the 7th period onward, we aim to manage our portfolio stably based on theabove-mentioned policies and further increase our unitholder value by achieving internal andexternal growth expectations.
External Growth (New acquisition of properties)
In addition to utilizing our pipeline to the Mitsui Fudosan Group and acquiring sales information on
residential rental properties, we will strive to rapidly obtain the best real estate information
possible by fortifying our independent information channels. Our property acquisition strategy will
be to stably expand our portfolio based on the Park Axis Series to be acquired from Mitsui
Fudosan Co., Ltd. in addition to the Park Cube Series constructed by other developers. Moreover,
we will aim to realize solid property acquisitions through individual strategies such as increasing
our single-occupant, compact, residential property ratio for which a high occupancy rate isexpected, widening the geographic area of our holdings within the 23 wards of Tokyo and carefully
selecting properties for investment in the major cities of regional areas.
We will also work towards effectuating high quality due diligence when acquiring properties inorder to avoid risk in an effort to increase the profitability of our portfolio.
Internal Growth (Management and operation of leasehold properties)
NAF will aim to improve its rent levels and occupancy rate through the formulation andimplementation of a leasing strategy that takes into account the characteristics of each individual
property with the objective of maximizing rent revenues over the mid- to long-term. NAF will
review the adequacy of the grade of property management and cost of management andoperation as to each invested property in an appropriate timeframe and manner and reduce costby the rational review of management cost by utilizing the merits of outsourcing all property
management tasks to the Master PM. NAF is continuously aiming for the maintenance andenhancement of the market competitiveness of Okawabata Apartment Communities byimplementing strategic renovation of principally private-use areas.
Further, with the help of Mitsui Fudosan Co., Ltd., NAF will work to establish brand power byconcentrating on the market penetration of the “Park Axis” brand, NAF’s main invested asset, andthe further enhancement of name recognition on the rental housing market.

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Financial Strategy
NAF will continue to emphasize the continued use of long-term, fixed-rate loans taking into
account measures to counter future interest rate and refinancing risks. Regarding LTV(loan-to-value ratio), the upper limit is set at 60% and targeted range during normal operations is
set at approximately 40% to 50%. NAF will examine the issuance of new units paying attention tomarket trends and distribution levels and taking into consideration the demand for funds for the
purpose of property acquisition as well as our financial position. Additionally, NAF will examine
future issuances of investment corporation bonds within the range of the remaining balance of theplanned issuance amount based on the shelf-registration statement of NAF bonds filed in July
2007.

Disclaimer:This financial report has been prepared in accordance with Japanese accounting standards andJapanese laws. Figures have been rounded down to eliminate amounts of less than one million
yen.
Please note that this English translation of the Japanese original document is provided solely for
informational purposes. In the event of any discrepancy between the Japanese original and thisEnglish translation, the Japanese original shall prevail.

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