NOMURA RESIDENTIAL FUND
3240

13th Fiscal Period(Ended May 31, 2013)

Analyst Meeting Presentation Material

July 17, 2013

Contents
1. Highlights of the 13th Fiscal Period

・ 13th Fiscal Period Financial Statement Overview
・ 13th Fiscal Period Performance

APPENDIX
2
3

2. Fund Management Summary
5・ Rental Housing Investment Characteristics
6
・ Portfolio Occupancy Rate
7・ Changes in Leased Units and Rent Level
8・ Measures for Increasing Property Competitiveness9・ Real Estate Investment Market
10・ Utilization of Diverse Sourcing Routes
11・ Strategy for Replacing Properties
12・ Changes in Asset Size
13・ Financial Status
14・ Management Strategies
・ Changes in Investment Unit Price and Cash Distribution 15

3. Details of the Financial Results

・ Income statement
・ Balance Sheet・ Forecasts for the 14th Fiscal Period・ Unitholders

18
19
20

21

4. Features of NRF

・ Characteristics of NRF
・ Priority Investment in Key Segments
・ Portfolio Status
・ Appraisal Value Status
・ Changes in Revenue
・ Portfolio Map
・ Portfolio
・ Changes in Financial Performance・ Interest-bearing Debts
・ Fund Profile
・ Asset Management Company Overview
July 17, 2013

23
24
25
26
27
28
29～33
34
35
36
37

Highlights of the 13th Fiscal Period

113th Fiscal Period (ended May 31, 2013) Financial Statement Overview
Financial Statement Overview
12th Fiscal Period(ended Nov. 30, 2012)

13th Fiscal Period(ended May 31, 2013)

Difference(previous period)

Operating Revenues¥5,174 million¥5,257 million+ 1.6 %

Operating Profits¥2,452 million¥2,433 million- 0.8 %Net Income¥1,875 million¥1,876 million+ 0.1 %

¥12,424¥12,170- 2.0 %

14th FP Forecasts(ending Nov. 30, 2013)

Difference to13th FP Results(Forecast)¥5,141 million- 2.2 %

¥2,379 million- 2.2 %

¥1,826 million- 2.7 %

¥12,100- 0.6 %

(Forecast)(Forecast)(Forecast)

Cash Distribution Per Unit

(Forecast Announced in Jan. 2013: ¥12,100/unit)

Difference in Cash Distribution(yen/unit)+ ¥546

13,000- ¥797¥12,424¥12,100- ¥3¥12,170- ¥767+ ¥641(Forecast)+ ¥56

12,00011,00010,000・ Rent and Common - ・ Expenses onarea Fees
Commission Fees,
etc.
+ ¥25
- ¥247・ Key Money and
Renewal Fees
・ Repair andMaintenance+ ¥349- ¥625・ Disposition revenue
・ Management Fees,+ ¥121etc.
・ Non-rental Revenues,
+ ¥75
etc.
+ ¥51

9,000
12th FPCash Distribution

ProfitCost

・ Revenues from
Commission Fee, etc.
+ ¥47
・ Interest Expense &Loan-related Fee, etc.
+ ¥138・ Provision for reserve
for reduction entry- ¥265・ Other
+ ¥77
Other

13th FPCash Distribution

・ Rent and Commonarea Fees
- ¥11・ Key Money and
Renewal Fees
- ¥701・ Disposition revenue- ¥55

Profit・ Expenses on
Commission
Fees, etc.
+ ¥506・ Repair andMaintenance+ ¥144・ Management
Fees, etc.
- ¥9

Cost

・ Revenues from
Commission Fee,
etc.
+ ¥16
・ Interest Expense &Loan-related Fee,
etc.
+ ¥20
・ Other
+ ¥20

Other

14th FPCash Distribution* Cash distribution per unit for the 14th fiscal period (ending Nov. 2013) shown in the chart is the forecast as of July 16, 2013. Actual figures may change due to the acquisition or sales of properties,changes in real estate markets, and other conditions surrounding NRF. NRF does not guarantee the cash distribution per unit predicted in this forecast.

2

13th Fiscal Period Performance
Management

Acquisition
 Continuing replacement of properties Maintain high occupancy rate
[ Occupancy Rate ](%)

URBAN STAGE Mejiro (Shinju-ku, Tokyo)• Acquisition Price• NOI Yield• Building Age

100

95.7

95.8

96.7

Debts

(billions of yen)

Bonds

Refinance

16.0

Total Portfolio

95.9

 Refinancing approx. ¥7.1 billion

Acquisition

End of 12th FP: 96.2% → End of 13th FP: 96.4%

95

Finance

96.4¥1,260
5.5
8.0

14.0

million%*1
years *2

12.0

¥7.1 billion

1.76% → 1.51%

10.0

97.5

8.0

Disposition

90

6.0

URBAN STAGE Toritsu Daigaku(Meguro-ku, Tokyo)
85• Disposition Price• NOI Yield• Building Age

80
Dec.

Jan.

Feb.

Mar.

Apr.

・ Increasing Nomura Living Support Co., Ltd. (NLS)
share of the property management.

• Disposition Price• NOI Yield• Building Age

¥365
3.0
20.8

¥1.6 billion¥1.0 billion

2.0

million%*1
years *2

0.0
13th
FP

URBAN STAGE Mianami Gyotoku I(Ichikawa-shi, Chiba)

May・ Revenues increased through splitting work onlarge residential units

¥564
5.5
26.0

¥4.5 billion

4.0

million%*1
years *2

15th
FP

17th
FP

19th
FP

21st
FP

23rd
FP

25th
FP

27th
FP

29th
FP

・Lower interest costs
・Diversification of repayment date・ Improving portfolio quality

・Elongation/fixation of debt financing[Period average occupancy rate]

95.8% → 96.3%(+ 0.5pt)

Asset Size:

Greater Tokyo Area 94.9% → 96.0%(+ 1.1pt)

Portfolio NOI Yield:

5.4 %

97.7% → 97.0%(- 0.7pt)

Building Age:

9.9 years

Total Portfolio

Other Areas(12th FP) (13th FP)[Portfolio at May 31, 2013 (152 properties)](12th FP) (13th FP)

Maintain High Occupancy Rate＋

Weighted Average Interest Rate 1.27% → 1.24%¥150.96 billion

Replacing Properties

LTV Level＋(- 0.03pt)

53.0% → 53.0% (±0.0pt)

RefinanceContinuing Stable Cash Distribution*1*2

For acquisitions, the NOI yield is sought by dividing the total annual NOI indicated in the real estate appraisal reports of each property at the time of their acquisition by the total acquisition price of each acquired asset. For sales, the NOI yield issought by dividing the total rent NOI annualized based on the number of operating days by the total acquisition price of each of NRF’s assets in the period in which each asset was sold.
The building age is as of the point of acquisition or sale of each property.

3Fund Management Summary4

Rental Housing Investment Characteristics
Changes in Rent Index by Purpose [Nationwide]
Offices

Housing

130StoresHotelsWarehouses

120
110
100
90
80
1990

1993

1996

1999

2002

2005

2008

2011

Source: Created by NREAM based on the Ministry of Internal Affairs and Communications “Consumer Price Index Annual Report (1990-2012)” and the Bank of Japan “Service Price Index for Companies (1990-2012)”* The line graph shows the index of each year with 1990 set as 100.

Projections on Number of Households → Ongoing demand expected from small households
 Tokyo Areas (Tokyo, Kanagawa, Chiba, Saitama)(thousand households)

 Other Areas (Hokkaido, Miyagi, Aichi, Osaka, Fukuoka)

Number of other general households
Total number of households

Number of single and DINKS households
Number of households with parents and children

18,000(thousand households)
18,000

Number of single and DINKS households
Number of households with parents and children

Number of other general households
Total number of households

12,00012,0008,730,000
households

7,500,000
households
6,000

6,000

5,440,000
households

4,880,000
households

0

0
2005

2010

2015

2020

2005

2010

2015

2020

Source: Created by NREAM based on the National Institute of Population and Social Security Research (IPPS)“Household Projections for Japan (by Prefecture)” (projections as of December 2009).

5

Portfolio Occupancy Rate

Total Portfolio(%)

Other Area

Greater Tokyo Area

100

95

90

85

12th Fiscal Period

13th Fiscal Period

Average: 95.8%

Average: 96.3%

80
2012年

2013年

Area

Jun.6月
2012

Jul.
7月

Aug.
8月

Sep.
9月

Oct.
10月

Nov.
11月

Dec.
12月

Jan.1月
2013

Feb.
2月

Mar.
3月

Apr.
4月

May
5月

Total Portfolio

95.7%

96.0%

95.4%

95.8%

95.8%

96.2%

95.9%

95.7%

95.8%

97.5%

96.7%

96.4%

Greater Tokyo Area

94.7%

94.9%

94.4%

94.7%

94.9%

95.7%

95.4%

95.3%

95.5%

97.2%

96.5%

96.1%

Other Area

97.7%

98.4%

97.7%

98.0%

97.7%

97.0%

97.0%

96.5%

96.4%

98.0%

97.2%

97.2%

Leasable Floor Area

79,521tsubo

79,521tsubo

79,521tsubo

79,521tsubo

79,521tsubo

79,521tsubo

79,521tsubo

79,522tsubo

79,221tsubo

79,014tsubo

79,014tsubo

79,545tsubo

6Changes in Leased Units and Rent Level


Rate of Change in Rent per Property

(%)

1.0

0.0
-0.02

-0.19

-0.26

-0.50

-1.0

-2.0

-3.0
10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)* Rate of change in rent per property is the comparison with the rent per property owned by NREAM at the end of the previous fiscal period.



Rent Change at Lease Renewals(%)
100

Increase

0.0

0.2

0.0

1.4

Rent Change Before Move-out and After Move-in(%)
100
Increase 24.1

Flat

30.5

34.7

34.7

15.3

19.4

53.0

49.9

45.9

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

11.1
16.5

50

Flat

96.7

94.8

97.4

95.7

50
Decrease 64.80Decrease 3.3
10th FP End(Nov. 30, 2011)

5.0

2.6

2.9

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

Decreasing
property
replacement by
reducing rent

0
10th FP End(Nov. 30, 2011)7

Measures for Increasing Property Competitiveness
Remodeling to Meet Tenant Needs

URBAN STAGE Komagome

Monthly rent
before splitting¥400 thousand

Monthly rent after
splitting (total of 4 units)¥603 thousand (+50.8% up)*The above monthly rents include common-area fees.

8Real Estate Investment Market
Change in J-REIT Real Estate Acquisition andSale Amount

Supply of New Properties (Number of Building Starts)(unit)

Greater Tokyo Area

Other Area

80,000(billions of yen)

Acquisition amountSale amountNet change

400

70,52557,01360,000350
300

57,36754,029250
200

40,000

150
100
50

20,0000- 50- 100
2007/04

0
2009

2010

2011

2012

Source: Created by NREAM based on the MLIT’s “Housing Start Statistics. The above are the totals of building starts of residences for rent
classified as apartment buildings of steel-framed reinforced concrete or reinforced concrete structure in the Housing Start Statistics
from January to December of each year.

Supply of Existing Properties(Change in Private Funds’ Acquisition Amounts)(billions of yen)

2009/04

2010/04

2011/04

2012/04

2013/04

Change in Expected Yield
(%)

1,800

2008/04

Source: Created by NREAM based on the Investment Trust Association, Japan’s Statistics on Real Estate Investment Corporations and public
documents of listed J-REITs.

Expected yield of single-room apartments(Jonan area (Meguro and Setagaya wards))

Expected yield of single-room apartments(Joto area (Sumida and Koto wards))

2008/04

2011/04

6.5
1,589

1,600
1,400

6.0

1,321

1,293

1,200
5.5

1,000
808

800

686

5.0
550

600
441
348

400

406
4.5

235
200

0

Fiscal
2003

Fiscal
2004

Fiscal
2005

Fiscal
2006

Fiscal2007

Source: MLIT’s 2012 Fact-Finding Study on Real Estate Securitization

Fiscal
2008

Fiscal
2009

Fiscal
2010

Fiscal
2011

Fiscal2012

4.0
2007/04

2009/04

2010/04

2012/04

2013/04

Source: Japan Real Estate Institute’s Real Estate Investor’s Survey

9

Utilization of Diverse Sourcing Routes
Breakdown of Acquired Properties by Sourcing Route

Properties owned by
Nomura Real Estate
Properties acquired
Development
through informationfrom outside%

PROUD FLATPROUD FLAT
Shirokane Takanawa Asakusa Komagata

24.8

34.9%
Properties acquired throughinformation from or withbrokerage of Nomura Real Estate
Development

40.3%

PRIME URBAN
Meguro Ohashi Hills

Sponsor Pipeline

65.1%

URBAN STAGE
Shibaura LOFT

10

Strategy for Replacing Properties
×Market: Acquiring Information on Prime Properties

NRF: Reduced Relative Competitiveness in Some Properties

Promoting Property Replacement• High Yield
Acquisition • Low Building Age• Low Management Efficiency• High Building Age＜Results＞＜Results＞
Number of Properties

7 Properties

7.17 Billion yen
Average NOI Yield
6.2 %Average Building Age
4.7 Years

Number of Properties*1

Portfolio at 13th Fiscal Period End
Number of Properties

Property Price

Average NOI Yield

US Kasai East

US Yoga

US Itabashi
Kuyakushomae*1: The average NOI yield is the NOI in the appraisal report weighted by the acquisition price.
*2: The average building age is weighted by acquisition price.

152

*3

Properties*4

150.96 Billion yen
5.4 %Average Building Age

US Kamimaezu

Properties

Property Price*2

US Koganei
Honcho6

2.76 Billion yen
Average NOI Yield
4.7 %Average Building Age 17.8 Years

Property Price

US Mejiro

Disposition

9.9 Years
US Minami Urawa

US Toritsu Daigaku

PU Ebisu Minami

US Tennocho*3: The average NOI yield is weighted by acquisition price.
*4: The average building age is weighted by acquisition price.

Improving the Quality and Profitability of Portfolios

11Changes in Asset Size
Acquisition (13th FP)

Stable Growth of Portfolio

Acquisition:

US Mejiro・Acquisition Price: ¥1,260 million
・Appraisal Value:(billions of yen)

¥1,310 million

・NOI Yield:

5.5 %・Building Age:

8.0 years

180.0

152 properties¥149.86 billion

160.0

140.0
139 properties 139 properties
134 properties ¥121.48 billion ¥121.48 billion
131 properties ¥115.93 billion¥110.33 billion

120.0

153 properties 152 properties¥150.58 billion ¥150.96 billion

145 properties
143 properties 144 properties 143 properties¥135.04 billion¥133.41billion¥132.89billion¥131.46 billion

100.0

80.0

Leasable Units
8,928 units

89 properties¥67.03 billion

97 properties¥75.42 billion

60.0

40.0

20.0

IPO
¥30,257 million#1 PO¥12,514 million#2 PO¥8,029 million#3 PO¥7,161 million

Greater Tokyo Area: 81.0%
Other Areas: 19.0%

0.0

1st FP End
3rd FP End
4th FP End
5th FP End
6th FP End
7th FP End
8th FP End
9th FP End
10th FP End
11th FP End
12th FP End
13th FP End
2nd FP End(May 31, 2007) (Nov. 30, 2007) (May 31, 2008) (Nov. 30, 2008) (May 31, 2009) (Nov. 30, 2009) (May 31, 2010) (Nov. 30, 2010) (May 31, 2011) (Nov. 30, 2011) (May 31, 2012) (Nov. 30, 2012) (May 31, 2013)*The graph is based on the total acquisition price as of each fiscal period end (rounded down to the nearest 10 million).

Portfolio Overview (13th Fiscal Period End)
Acquisition Price
Leasable Units¥150,966 million
8,928 units

Average Rent Per Unit

approx. ¥94 thousand

Average Leasable Floor Area Per Unit

approx.

29 sqm12

Financial Status (13th Fiscal Period End)Interest-bearing Debt

Maturity Diversification(billions of yen)

¥83,002 million

Interest-bearing Debt Total

Average Remaining Duration of Interest-bearing Debt

(Details)

20.0

Repayment dateAmount(millions of yen)Sep. 29, 2013

5,472

Sep. 30, 2013

800

2.7 years

LenderThe Bank of Tokyo-Mitsubishi
UFJ, others
The Dai-Ichi Life
Insurance Company

15.0
Debts

1.24 %

Weighted Average Interest Rate

¥9.2
billion

10.0

Long-term Interest-bearing Debt Ratio
Fixed-rate Interest-bearing Debt Ratio

81.1 %
89.9 %
53.0 %

LTV Level*Investment Corporation Bonds are included in the “Interest-bearing Debt.”*Long-term Ratio, when including “long-term loans due within a year” in long-term loans, is 100.0%.
*“Loan Interest Rate Fixed Ratio” includes floating rate loans which have been fixed through interest rate swaps.

¥6.3
billion

Bonds

¥10.5
¥9.7 ¥9.7 billion
billion billion¥7.7¥6.6 billion
billion¥6.3
billion¥3.9
billion

5.0¥5.4
billion¥4.5
billion¥1.6
billion ¥1.0
billion

0.0

14th
FP

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

20th
FP

1st Investment
Corporate Bond

21st
FP

22nd
FP

2nd Investment
Corporate Bond

23rd
FP

24th
FP

25th
FP

26th
FP

27th
FP

28th
FP

29th
FP

Lender Diversification (19 Lenders)Credit Rating(millions of yen)

AgencyJCR

S&P

RatingLong-term issuer rating:Major Banks (4)OutlookAA

Long-Term
Corporate Credit Ratings:

A

Short-Term
Corporate Credit Ratings:

A-1

StableStableTrust Banks (4)Regional Banks (4)The Bank of Tokyo-Mitsubishi UFJ

11,524 Mitsubishi UFJ Trust and Banking

11,524 The Iyo Bank

1,000

Sumitomo Mitsui Banking

11,524 The Sumitomo Mitsui Trust and Banking

4,920 The Bank of Fukuoka

1,000

Mizuho Bank *6,620 The Nomura Trust and Banking

3,700 The Chiba Bank

750

Resona Bank Limited

1,900 Mizuho Trust & Banking Co., Ltd.

1,000 The Tokyo Tomin Bank, Ltd.

500

Insurance Companies (4)Others (3)Taiyo Life Insurance

3,000 Development Bank of Japan

7,820

Mitsui Sumitomo Insurance

2,100 Shinkin Central Bank

1,720

Daido Life Insurance

1,100 Aozora BankThe Dai-Ichi Life Insurance

800

Total Borrowings

500
73,002(Reference)

Investment Corporate Bond 10,000*Mizuho Corporate Bank, Ltd. and Mizuho Bank, Ltd. merged on July 1, 2013 to become Mizuho Bank, Ltd. as indicated here.

13

Management Strategies
Management

Acquisition

Rental Market

Real Estate Investment Market

Financial Market→新規物件の供給減少

 Continuation of tight supply-demandenvironment

 Increasing property transactions

 Promote the continuation of monetaryeasing policy

Enhancing Portfolio Profitability

Improving Portfolio Quality

Improving Borrowing Conditions

 Promoting property replacement continuously Refinancing approx. 6.3 billion yen in 14th FP

 Maintain high occupancy
 Renovating properties and providing otherservices to tenants→ Improving lease conditions

Finance / Capital→ Selling properties that are aged, or
whose profitability is lowered→ Lower interest costs→ Acquiring properties considering NOI yield→ Longer duration

Maintaining a Stable Level of Cash Distribution

14

Changes in Investment Unit Price and Cash Distribution
Changes in Investment Unit Price
Investment Unit Price

Investment unit price (yen)TSE REIT Index

(pt)

3,000

1,000,000
Mar. 29, 2007
Highest price: ¥979,000

2,700Mar. 14, 2011
BOJ Announces
Additional Purchase of J-REIT

800,000

Apr. 27, 2012
BOJ Announces
Additional Purchase of J-REIT

Mar. 11, 2011
Great EasternJapan Earthquake

September 2008
Nikkei Stock Average
Lehman Brothers Bankruptcy Mar. 10, 2009

600,000

2,400
2,100

1,800

Lowest: ¥7,054.98
Oct. 5, 2010
BOJ Announces
Purchase of J-REITs

May 31, 2013
¥524,000Feb. 14, 2012
Enhance of Monetary Easing

1,500

BPS ¥469,326

1,200

400,000

900

1st PO¥12.5 billion

600

200,000
2nd PO¥8.0 billion

Jan. 15, 2009
Lowest price: ¥287,600

0Feb. 14,2007

3rd PO¥7.1 billion

300

0
May 31,2007
1st FP

Nov. 30,
2007
2nd FP

May 31,2008
3rd FP

Nov. 30,
2008
4th FP

May 31,2009
5th FP

Nov. 30,
2009
6th FP

May 31,2010
7th FP

Nov. 30,2010
8th FP

May 31,2011
9th FP

Nov. 30,2011
10th FPMay 31,2012
11th FP

Nov. 30,2012
12th FPMay 31,2013
13th FP

Changes in Cash Distribution
Stability and Growth of Cash Distribution(yen)
20,00016,00014,14414,005

12,127
12,0008,000

13,91013,631

12,068
11,046

11,674

11,77012,302

12,424

12,17012,100(Forecast)

8,102

4,000
0

1st FP
2nd FP
3rd FP
4th FP
5th FP
6th FP
7th FP
8th FP
9th FP
10th FP
11th FP
12th FP
13th FP
14th FPMay 31, 2007 Nov. 30, 2007 May 31, 2008 Nov. 30, 2008 May 31, 2009 Nov. 30, 2009 May 31, 2010 Nov. 30, 2010 May 31, 2011 Nov. 30, 2011 May 31, 2012 Nov. 30, 2012 May 31, 2013 Nov. 30, 201315

Ａ Ｐ Ｐ Ｅ Ｎ Ｄ Ｉ Ｘ

16Details of the Financial Results

17Income Statement

Operating Revenue
Real Estate Rental Business Revenues*1

Rental Business Revenues
Other Rental Business Revenues
Parking Lot Revenue

12th Fiscal Period

13th Fiscal Period

Difference from

From Jun. 1, 2012

From Dec. 1, 2012

Previous Period

To Nov. 30, 2012
Amount(￥000)
5,174,635

To May 31, 2013
Amount(￥000)
5,257,115(13th FP - 12th FP)
Difference
Difference(￥000)
Ratio
82,4791.6%

5,174,635

5,238,904

64,2694,833,156

4,836,942

3,786

0.1%

341,479

401,962

60,48217.7%

134,997

132,230-2,767-2.1%*Reference [13th Fiscal Period]

1.2%

Incidental Revenue*2

148,721201,80953,088

35.7%

Other Real Estate Rental Revenues*357,75967,921

10,161

17.6%－

18,21018,210－2,721,882

2,823,675

101,792

3.7%

Real Estate Disposition Revenue
Operating Expense*12,131,898

2,252,269

120,371

5.6%

Repair Expenses*4

178,147

251,156

73,00941.0%

Tax and Public Dues

*5

Real Estate Rental Business Expenses

256,024

259,940

3,916

1.5%

Depreciation and Amortization

967,546

967,193-352▲- 0.0

Other Rental Business Expenses

730,180

773,978

43,7986.0%

379,006

375,947-3,058

-0.8%
-7.4%

Asset Management Fees

210,978

195,458-15,520

2,452,752

2,433,439-19,312-0.8%

Non-Operating Revenues

4,733

3,602

-1,131-23.9%

Non-Operating Expenses

580,992

558,985-22,007-3.8%

Interest Expenses

477,313465,391-11,922-2.5%

Investment Corporation Bond Interest

55,70856,248539

1.0%

Other Operating Expenses*6

Operating Profits

47,97037,345-10,624-22.1%

Ordinary Income

1,876,493

1,878,056

1,562

0.1%

Net Income Before Tax

1,876,493

1,878,056

1,562

0.1%

1,223

1,216

-7

-0.6%

1,875,270

1,876,840

1,570

0.1%

77

118

41

53.2%

Retained Earnings at Fiscal Period End

1,875,347

1,876,958

1,611

0.1%

Total Cash Distribution

1,875,228

1,836,891-38,337-2.0%

Other Non-Operating Expenses

Corporate Income Tax, etc.
Net Income
Retained Earnings Brought Forw ard*7

1. Real Estate Rental Business: ¥2,986,635
Revenues thousand(from previous FP :¥-56,102 thousand)(Note) The amount of total cash distributions in the 13th Fiscal Period is the amount where the provision of reserve for reducti on entry (¥40 million) is
deducted from unappropriated retained earnings.

2. Incidental Revenues
2. Key Money
2. Renewal Fee::¥78,815 thousand¥107,027 thousand

3. Other Real
EstateRentalRevenuesfor loss on
3．Revenue
fromreversalof provisiondisaster,cellphone antennae, vending machines, etc.
4. Renovation Expenses
4．Repair Expenses
4．Capital Expenditure
Total

:
:
:

¥251,156 thousand¥138,959 thousand¥390,116 thousand

5. Tax and Public Dues (152 properties at FP End)
5．Subject Property:
151 properties
5．Excluded Property:
1 properties
Total:
152 properties(estimate: ￥4,568 thousand/1 year)

6. Other Operating Expenses
6．Duty Entrustment Fee:
6．Directors Fee, etc.
:

¥38,066 thousand¥4,800 thousand

7. Other Non-Operating
Expenses
7．Loan Related Expense, etc.
:

¥27,293 thousand(Figures are rounded down to the nearest thousand)18Balance Sheet
Liabilities and Net Assets

Assets12th Fiscal Period
as of Nov. 30, 2012

13th Fiscal Period
as of May 31, 2013

12th Fiscal Period
as of Nov. 30, 2012

13th Fiscal Period
as of May 31, 2013

Amount(￥000)

Amount(￥000)

Amount(￥000)

Amount(￥000)

Current Assets
Cash and Cash Equivalents
Cash and Cash Equivalent in Trust
Other Current Assets
Fixed Assets＊

Tangible Fixed Assets

1

Ratio
(%)

6,646,820

4.2

6,857,193

4.4

5,623,043

3.6

5,945,171

3.8

939,3960.6

811,980

0.5

84,3800.1

100,0410.1

150,002,479

95.7

149,671,583

95.6

149,987,204

95.7

149,656,963

95.6

Current Liabilities

Ratio
(%)

Ratio
(%)

14,900,799

9.5

16,979,054

203,2160.1

218,477

0.1

13,552,000

8.6

15,652,000

10.0

Other Accounts Payable

305,4800.2

292,165

0.2

Taxes Payable

12,7690.0

15,7820.0

168,8440.1

137,301

0.1

656,1130.4

660,263

0.4

2,374

0.0

3,063

0.0

70,966,343

45.3

68,758,683

43.9

Trade Accounts Payable
Long-term Loan Due Within One Year

＊

2

10.8

108,123,021

69.0

115,078,206

73.5

Accrued Expenses

Building

53,028,525

33.8

54,509,622

34.8

Rent Received in AdvanceLand

55,094,496

35.2

60,568,584

38.7

Deposits Payable

Real Estate in Trust

41,849,111

26.7

34,572,444

22.1

Building in Trust

13,187,857

8.4

11,105,042

7.1

Investment Corporation Bonds＊

2

10,000,000

6.4

10,000,000

6.4Land in Trust

28,661,254

18.3

23,467,401

15.0Long-term Loans＊

259,540,000

38.0

57,350,000

36.6

15,071

0.0

6,312

0.0

Security Deposits

968,657

0.6

1,018,403

0.7

3,101

0.0

2,579

0.0

Security Deposits in Trust

457,6850.3

390,280

0.2

3,101

0.0

2,579

0.0

Total Liabilities

Investment and Other Assets

12,1730.0

12,0400.0

85,867,142

54.8

85,737,738

54.8

Security Deposits

10,8790.0

10,8790.0

70,836,670

45.2

70,838,281

45.2

Unitholders Capital

68,961,322

44.0

68,961,322

44.0

Retained Earnings

1,875,347

1.2

1,876,958

1.2

70,836,670

45.2

70,838,281

45.2

156,703,813

100.0

156,576,020

100.0Real Estate

Construction in Progress
Intangible Fixed Assets
Other Intangible Fixed Assets

Long-term Repaid Expenses
Deferred Assets

1,294
54,513

Investment Corporation Bond Issuing Expenses

Total Assets
*

Ratio
(%)

1,161

0.0

47,2430.0
0.0

Unitholders Equity

54,5130.0

47,2430.0

Total Net Assets

156,703,813

100.0

156,576,020

100.0

Total Liabilities and Net Assets(unit : million of yen)

1 Tangible Fixed Asset

Real Estate, etc.
Building
Land
Building in TrustLand in Trust
Construction in Progress

0.0

Fixed Liabilities

AcqisitionPrice

Accumulated
Depreciation(Depreciation for
current FP)

Book value
at FP end

159,137
61,60460,56813,491
23,467
6

9,480
7,094
－
2,386
－
－

(967)
(788)
－
(178)
－
－

149,656
54,50960,568
11,10523,467
6*2 Loans (long-term loans due whithin a year are included in the short-term loans)
Balance of interest-bearing debts (millions of yen)

83,002

Total asset interest-bearing debt ratio

Short-term loans+bonds＋Long-term loans
total assets

53.0％

Long-term interest-bearing debt ratio

Bonds＋Long-term loans
Short-term loans+bonds＋Long-term loans

81.1％

19

Forecasts for the 14th Fiscal Period
13th Result
From Dec. 1, 2012
To May 31, 2013
Amount(millions of yen)
Operating Revenue
Real Estate Rental Business Revenues
Real Estate Disposition Revenue
Operating Expense

14th FP Forecast
From Jun. 1, 2013
To Nov 30, 2013
Amount(millions of yen)Amount(millions of yen)

5,257

5,141

-116

5,238

5,131

-107

18

9

-9

2,823

2,761

-62

2,252

2,155

-97

Repair Expenses

251

243

-8

Tax and Public Dues

259

258

-1

Depreciation and Amortization

967

969

2

Asset Management Fees

375

373

-2

Other Operating Expenses

195

232

37

Real Estate Rental Business Expenses

Assumptions

Difference

Operating Profits

2,433

2,379

-54

Non-Operating Profit and Loss

555

552

-3

Interest Expenses

521

513

-8

Ordinary Income

1,878

1,827

-51

Net Income

1,876

1,826

-50

【Properties】
Number of Properties：

Total Amount of Acquisition Price：¥150,390 million：¥45 million：¥18 million

US Sapporo Riverfront(Renovation work for common areas)：¥12 million【Lorns】
Total Interest-bearing Debt
(as of Jul. 17, 2013)：¥83,002 million

151 properties【Repair Expenses】¥390 million for 13th Fiscal Period(¥138 million of which is capital expenditure)
Example)US Komagome (unit renovation)¥308 million for 14th Fiscal Period(¥65 million of which is capital expenditure)
Example)US Ekoda (lorge-scale renovation)

Number of Investment Units Issued(units)150,936

150,9360Cash Distribution Per Unit(yen)

12,17012,100-70

Number of Properties(properties)

152

151

-1

Leasable Floor Area(sqm)

262,961

262,126-835

Repayment through loans (Sep 2013)：¥6,272 million

95.8

-0.5

Agreed Repayment (Aug. 2013)：¥90 million

Average Occupancy Rate

(%)

96.3

Interest-Bearing Debt Repayment Due During 14th FP(after Jul. 17, 2013)20

Unitholders (13th Fiscal Period End)
Changes in Ratio of Units Held by Unitholders（units）
150,936units

160,000
125,535units

17.5%

16.4%

19.2%

12.9%

12.2%

13.3%

13.4%

120,000

13.0%

20.4%

Individuals/Others( 30,845 unit

10.4%

Foreign Corporations, etc.
( 15,741 unit
126 unitholders )13.6%

Domestic Corporation (excluding Financial Institutions)( 20,581 unit
182 unitholders )80,00015.2%

40,00010,307 unitholders )

58.0%

56.3%

Financial Institutions (including Securities Companies)( 83,769 unit
105 unitholders )

55.5%

52.7%

0
10th FP

11th FP

12th FP

13th FP[Financial Institutions]Total

66,096 units

52.7%

84,986 units

56.3%

87,600 units

58.0%

83,769 units

55.5%

Banks

5,907 units

4.7%

10,282 units

6.8%

15,222 units

10.1%

15,155 units

10.0%

Trust Banks

49,472 units

39.4%

63,816 units

42.3%

61,213 units

40.6%

56,422 units

37.4%

1,954 units

1.6%

2,248 units

1.5%

2,991 units

2.0%

3,397 units

2.3%

1,665 units

1.3%

830 units

0.5%

830 units

0.5%

1,595 units

1.1%

1,589 units

1.3%

1,965 units

1.3%

1,539 units

1.0%

1,401 units

0.9%

5,509 units

4.4%

5,845 units

3.9%

5,805 units

3.8%

5,799 units

3.8%Life Insurance
Companies
Non-Life Insurance
Companies
Securities
Companies, etc.

Other

Top 10 Unitholders
#

Units

Ratio (%)

#

Units

Ratio (%)

1

Japan Trustee Services Bank, Ltd.

Unitholders

29,18819.34

6

Trust and Custody Services Bank, Ltd.

Unitholders

2,690

1.78

2

Nomura Real Estate Development Co., Ltd.

15,240

10.10

7The Joyo Bank, Ltd.

2,502

1.66

3

The Nomura Trust and Banking Co., Ltd.

8,519

5.64

8

Nomura Bank (Luxembourg) S.A.

2,305

1.53

4

The Master Trust Bank of Japan, Ltd.

7,049

4.67

9

Mizuho Trust & Banking co., Ltd.

2,067

1.37

5

Trust and Custody Services Bank, Ltd.

6,035

4.00

10 The Hokuriku Bank, Ltd.

1,689

1.12

77,284

51.20

Total

(Note) The Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units.

21

Characteristics of Fund

22

Characteristics of NRF
Structure for Generating Stable Profit

Priority Investment in Core Units

Foundation for
Stable Profit
Highly-effective Property Management

Stable Financial Foundation

 Priority Investment in Core Units： Units with rents ¥150,000 or less, and areas under 50sqm

 Highly-effective Property Management： Taking measures for increasing property competitivenessand occupancy rate Stable Financial Foundation： Maintaining conservative financial policy

23

Priority Investment in Key Segments
Investment in the segments with high demand for rental properties
 Changes in Number of Households (“Total ””Singles””DINKs”)

 Relative Frequency Distribution of Number of Households by Income[Greater Tokyo Area](Thousand Households)(％)

16,00014,91815,253

15,414200

15,415Singles/
DINKs 160
(158%)

13,157140
Total
Number ofHouseholds(124%) 120

Over 50% of the total
number of households

12,318Main target tenant classes⇒Annual Income ¥4 million～¥9 million（ approx. 50% of total household）

180

13,757

14,000（％）
16

15,268Peak of Numberof Households

12,000[Nationwide]

12

8

4

100

10,000

80

1995

2000

2005

2010

2015

2020

2025

0

2030

Source: Created by NREAM based on the National Institute of Population and Social Security Research (IPSS) “Number of Households by Family Type,
Source: Age (five-year groups), and Sex group.”* The line graph shows changes in number of single or couple-only households and total number of households with 1995 set as 100.

Core Units(rent ¥150,000 or less, floor area under 50 sqm)

 Changes in Occupancy Rate of Core Units（％）

Aｔ 13th Fiscal Period End
Core Units
Unit Ratio(Occupancy Rate
Characteristics

：
：

Low
Rent

88.0

Small
Area
%

96.4 %)： Single/DINKs units
in Greater Tokyo Area

7,818 units

Number of subject
housing units

Units with rent ¥150,000 or less and floor area under 50 sqm

Unit Ratio：(Occupancy Rate
Characteristics：

Number of subject
housing units（income）

Source: The Ministry of Health, Labour and Welfare (MHLW) “Overview of National Livelihood Survey 2011”

6.5 %96.2 %)： Family unitsin Major Regional Cities

580 units

100
Unit Ratio：(Occupancy Rate
Characteristics：

Unit Ratio：(Occupancy Rate
Characteristics：

housing units

96.2

96.4

96.4

94.4

93.6

95.8

96.5

96.3

96.7

96.7

96.0

96.4

80

275 units¥150,000
50 sq. meters

96.9

97.0 %)： Expensive units
in Central Tokyo

Number of subject
housing units

Large
Area Number of subject

3.1 %

2.4 %
96.0 %)

Average 96.0 ％
High
Rent

60

： Family units
in Central Tokyo/Suburbs

214 units

40
1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP
End
End
End
End
End
End
End
End
End
End
End
End
End

* Figures do not include data on stores.

(For reference) Total NRF portfolio
・Average Rent Per Unit

approx. ¥94 thousand

・Leasable Units

8,928 units

・Average Leasable Floor Area Per Unit approx. 29 sqm

24Portfolio Status (13th Fiscal Period End)
Diversification Within Assets

11.3%■Top 5 Properties¥17.10 billion

Building Age

28.0%■Over 10 years

Improve portfolio stability
through promotion ofdiversification

Considering the combination ofvarious building age to avoid thebias of large-scale repair
expenses⇒Top 10 Properties 19.7%⇒Average Building Age
9.9 Years

80.3%■Other 142 Properties¥121.27 billion

Investment Area

19.0%
■Other Areas

Greater Tokyo Area 70% or more
Other Areas 30% or less⇒Greater Tokyo Area 81.0%

81.0%

Floor Area Per Unit

Investing in properties targeting
single/DINKS/young family
households for theforeseeable future(Kanagawa,Chiba, Saitama)⇒Under 50 sqm
4.4%

6.8%
■Over 10 min.

8.

■30-50 sqm

Units Per Property■Within 5 min.

Investing in properties withstrong lease-up potential in ashort timeframe⇒Within 10 min. 93.2 %⇒Average Unit Per Property
58 Units■5-10 min.

0.5%
■Retail & Office0%■50-70 sqm

19.1%

63.4%

Selection focusing onaccessibility to the nearest
railway stations

37.3%

0.

90.6%

Tokyo (23 wards)

55.9%

60.1%

9%
■Over 70 sqm■Greater Tokyo Area

Other Areas■3-5 years■5-10 years■Top 10 Properties¥29.69 billion

13.3%

Tokyo (excluding the 23 wards)

Nearest Station on Foot

19.7%

11.9%

22.

9%
■Over 100 Units

44.

0%■50-100 Units

71.

5%■Under 30 sqm

8.

1%■Under 30 Units25.

0%■30-50 Units

25

Appraisal Value Status (13th Fiscal Period End)
Appraisal Value
Appraisal Value Details
12th FP End Appraisal Value (A)*¥142,381 million

13th FP End Appraisal Value (B)¥143,063 million

 Increase

74 properties ( 048.7 %) Flat37 properties ( 024.3 %) Decrease 41 properties ( 027.0 %)+ ¥682 million

Difference (B)-(A)Total

152 properties ( 100.0 %)[Reference]
 BPS

：

¥469,326

 NAV per Unit：

¥425,639

Range of Cap Rate and Book-to-Market Ratio
（％）

5.70

Average Cap Rate
5.61

5.58

5.57

5.55

5.50

5.47

5.46
（ - 0.01）

Book-to-Market Ratio

5.41（ - 0.05）

5.34（ - 0.07）

（x )

1.05

1.00

5.30
5.10

0.94
0.92

4.90

0.89

0.90

0.90

0.95
（ + 0.01）

0.96

0.95

（ + 0.01）（ + 0.02）

0.90

0.91

0.85

4.70

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP*12th FP End Appraisal Value” includes the appraisal value at the time of acquisition of the 1 properties acquired during the 13th FP.
It also excludes the appraisal value of 2 property disposed during the 12th FP.

26

Changes in Revenue
Changes in Rent per Tsubo and Occupancy Rate (10th FP End-14th FP End (forecast))[Rent per Tsubo](Rent per Tsubo)

Rent/Tsubo (Greater Tokyo Area)

Rent/Tsubo (Other Areas)

Rent/Tsubo (Total)

15,00012,500Total ¥11,039（Forecast）¥10,662¥10,653¥10,644

Rent
per Tsubo¥10,560

14th FP End[forecast](Nov 30, 2013)

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

Total¥11,039¥10,662¥10,653¥10,644¥10,560

GreaterTokyo¥12,326¥12,325¥12,280¥12,264

－

Other
Areas

¥7,149¥7,302¥7,306¥7,302－

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End[forecast](Nov 30, 2013)

Total

96.8%

96.2%

96.2%

96.4%

95.5%

Greater
Tokyo

96.4%

95.5%

95.7%

96.1%

－

Other
Areas

97.8%

97.7%

97.0%

97.2%

－

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End[forecast](Nov 30, 2013)

9.7％

14.8％

9.7％

13.2％

9.2％

Details

10,000

7,500

5,000
10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End [forecast](Nov 30, 2013)[Occupancy Rate]
（％）

100.0

97.5

Occupancy Rate (Greater Tokyo Area)

Occupancy Rate (Other Areas)

Occupancy Rate (Total)

Occupancy
Rate

Total 96.8%

96.2%

96.2%

96.4%

（Forecast）

Details

95.5%

95.0
(Reference)

92.5

Turnover
Ratio

Total

90.0
10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End [forecast](Nov 30, 2013)27

Portfolio Map (152 Properties)
Saitama
Kawaguchi

Greater Tokyo Area

Adachi-ku

Itabashi-ku

119 Properties

Kita-ku

Chiba

Nerima-ku

Katsushika-ku
Arakawa-ku
Toshima-ku

IkebukuroBunkyo-ku

Takadanobaba

Taito-ku

Ueno

Sumida-ku

Nishi
Funabashi

Kichijoji

Tachikawa

Suginami-ku

Nakano-ku

Edogawa-ku

Shinjuku-ku
Shinjuku
Chiyoda-ku

Tokyo
Chuo-ku
Shibuya-ku

Shibuya

Other Areas

Koto-ku

Urayasu

Minato-ku

Setagaya-ku

33 Properties

Shinagawa

Sapporo13 properties

Meguro-ku

Shinagawa-ku

Osaka
5 properties

Sendai5 properties

Kanagawa
Ota-kuHaneda Airport

Nagoya5 properties
Yokohama

Fukuoka
5 properties
JR Lines
Other Lines*Greater Tokyo Area
(Tokyo, Kanagawa, Chiba, Saitama)

28

Portfolio
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Name of Property
PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT M eguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT M onzen Nakacho II
PROUD FLAT M onzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIM E URBAN Akasaka
PRIM E URBAN Tamachi
PRIM E URBAN Yoyogi
PRIM E URBAN Bancho
PRIM E URBAN Chiyoda Fujimi
PRIM E URBAN Iidabashi
PRIM E URBAN Ebisu
PRIM E URBAN Naka M eguro
PRIM E URBAN Gakugei Daigaku
PRIM E URBAN Senzoku
PRIM E URBAN M eguro Riverside
PRIM E URBAN M eguro Ohashi Hills
PRIM E URBAN Hakusan
PRIM E URBAN Yotsuya Gaien Higashi

Location
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Nerima-ku, Tokyo
Taito-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo

Acquisition Price(thousands of yen)
3,510,000
1,100,000
865,000
800,000
812,000
882,000
2,260,000
1,540,000
1,110,000
1,010,000
1,350,000
1,140,000
2,980,000
695,000
900,000
650,000
1,130,000
1,370,000
1,960,000
2,340,000
2,770,000
1,430,000
956,000
941,000
408,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000
3,580,000
893,000
1,700,000

Percentage ofTotal (%)
2.3
0.7
0.6
0.5
0.5
0.6
1.5
1.0
0.7
0.7
0.9
0.8
2.0
0.5
0.6
0.4
0.7
0.9
1.3
1.6
1.8
0.9
0.6
0.6
0.3
0.8
0.5
1.3
0.8
0.9
0.6
0.4
0.3
2.4
0.6
1.1

Leasable Floor Area(sqm)
2,950.11
1,151.34
958.98638.70934.39855.23
3,055.21
1,793.43
1,450.91
1,102.20
1,277.82
1,541.64
4,051.72
752.091,209.56
830.55
1,191.08
2,222.05
2,685.39
3,118.12
4,872.17
2,219.74
1,062.05
1,107.36
439.56
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.772,955.74
1,069.82
1,759.11

Leasable Units(units)
106
44
31
30
41
40
110
70
60
41
48
67
169
35
55
35
55
94
79
113
200
81
25
48
19
52
32
90
29
49
32
22
24
99
42
51

Occupancy Rate
(M ay 2013)(%)
96.7
98.0
93.7
93.3
100.0
100.0
97.9
100.0
97.0
97.1
92.3
91.4
94.7
100.0
100.0
92.1
100.0
100.0
94.3
93.2
100.0
97.1
100.0
94.0
96.0
91.1
100.0
95.7
100.0
100.0
91.0
84.7
100.0
99.1
92.2
97.8

29

Portfolio
#
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

Name of Property
PRIM E URBAN Nishi Shinjuku I
PRIM E URBAN Nishi Shinjuku II
PRIM E URBAN Shinjuku Naitomachi
PRIM E URBAN Nishi Waseda
PRIM E URBAN Sangen Jaya
PRIM E URBAN M inami Karasuyama
PRIM E URBAN Karasuyama Galleria
PRIM E URBAN Karasuyama Court
PRIM E URBAN Chitose Funabashi
PRIM E URBAN Shinagawa Nishi
PRIM E URBAN Osaki
PRIM E URBAN Omori
PRIM E URBAN Kita Senzoku
PRIM E URBAN Denenchofu M inami
PRIM E URBAN Nakano Kamitakada
PRIM E URBAN Nishi Ogikubo
PRIM E URBAN Otsuka
PRIM E URBAN M onzen Nakacho
PRIM E URBAN Kameido
PRIM E URBAN Sumiyoshi
PRIM E URBAN Kinshi Koen
PRIM E URBAN Kinshicho
PRIM E URBAN Hirai
PRIM E URBAN Kasai
PRIM E URBAN Kasai II
PRIM E URBAN Shinyurigaoka
PRIM E URBAN Urayasu
PRIM E URBAN Gyotoku I
PRIM E URBAN Gyotoku II
PRIM E URBAN Gyotoku Ekimae
PRIM E URBAN Nishi Funabashi
PRIM E URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Kachidoki

Location
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Kawasaki-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo

Acquisition Price(thousands of yen)
1,290,000
1,000,000
512,000
503,000
835,000
840,000
645,000
413,000
885,000
624,000
1,700,000
824,000
576,000
900,000
640,000
435,000
794,000
2,200,000
705,000
552,000
1,180,000
668,000
700,000
637,000
958,000
1,210,000
840,000
635,000
741,000
476,000
772,000
2,170,000
991,000
1,510,000
452,000
2,290,000

Percentage ofTotal (%)
0.9
0.7
0.3
0.3
0.6
0.6
0.4
0.3
0.6
0.4
1.1
0.5
0.4
0.6
0.4
0.3
0.5
1.5
0.5
0.4
0.8
0.4
0.5
0.4
0.6
0.8
0.6
0.4
0.5
0.3
0.5
1.4
0.7
1.0
0.3
1.5

Leasable Floor Area(sqm)
1,459.86
1,162.55
578.18507.11
874.15
1,049.73
835.05576.201,027.44
961.252,106.16
1,190.70
834.901,100.17
818.75543.09944.993,207.92
1,117.34
813.52
1,886.50
991.62
1,095.91
905.81
1,437.84
1,708.19
1,264.84
1,151.36
1,244.00
778.191,237.80
2,477.11
1,222.13
1,905.39
650.604,524.00

Leasable Units(units)
60
46
14
28
33
41
33
23
38
46
99
54
46
44
33
24
46
118
52
40
77
49
53
45
68
64
60
52
58
37
60
98
40
68
38
145

Occupancy Rate
(M ay 2013)(%)
100.0
95.7
100.0
100.0
94.2
92.8
88.0
87.0
97.5
95.9
96.0
98.1
95.7
90.0
100.0
95.7
100.0
96.7
100.0
87.5
98.7
100.0
92.5
97.8
95.6
100.0
96.7
98.1
100.0
91.9
96.7
100.0
100.0
95.9
100.0
90.7

30

Portfolio
#
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108

Name of Property
URBAN STAGE Shinkawa
URBAN STAGE Nihonbashi Yokoyamacho
URBAN STAGE Hongo Ikizaka
URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE M ejiro
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya
URBAN STAGE Chitose Karasuyama
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Karasuyama
URBAN STAGE Kamikitazawa
URBAN STAGE Yoga
URBAN STAGE Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE M ukojima
URBAN STAGE Kasai East
URBAN STAGE Ekoda
URBAN STAGE Takinokawa
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE M achiya
URBAN STAGE M achiya South Court
URBAN STAGE Koganei
URBAN STAGE M usashi Koganei
URBAN STAGE M usashino Hills
URBAN STAGE Koganei Honcho
URBAN STAGE Hino

Location
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Kita-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo

Acquisition Price(thousands of yen)
2,250,000
3,530,000
647,000
655,000
324,000
635,000
1,260,000
362,000
900,000
755,000
730,000
539,000
396,000
344,000
738,000
1,150,000
530,000
1,100,000
970,000
1,460,000
472,000
1,080,000
412,000
487,000
940,000
385,000
287,000
940,000
350,000
210,000
1,740,000
229,000
2,390,000
1,590,000
725,000
319,000

Percentage ofTotal (%)
1.5
2.3
0.4
0.4
0.2
0.4
0.8
0.2
0.6
0.5
0.5
0.4
0.3
0.2
0.5
0.8
0.4
0.7
0.6
1.0
0.3
0.7
0.3
0.3
0.6
0.3
0.2
0.6
0.2
0.1
1.2
0.2
1.6
1.1
0.5
0.2

Leasable Floor Area(sqm)
3,600.61
5,926.17
662.581,237.98
517.53
1,053.39
1,755.52
567.201,739.86
1,018.72
1,774.01
810.98572.41507.52
1,384.45
1,773.05
722.701,782.26
1,536.59
2,456.48
801.301,746.20
991.94
1,108.91
1,884.62
872.49554.391,742.64
876.70455.194,141.56
682.43
5,999.80
2,961.06
1,604.72
994.68

Leasable Units(units)
46
124
27
18
32
28
65
34
37
47
27
17
26
28
29
54
45
93
94
95
51
107
22
55
78
35
29
68
22
26
77
27
98
80
43
54

Occupancy Rate
(M ay 2013)(%)
94.8
95.9
96.3
100.0
97.0
100.0
88.1
97.1
96.4
95.1
96.2
91.3
82.2
100.0
90.5
93.0
100.0
94.2
93.6
93.9
100.0
95.4
92.2
98.2
100.0
97.5
100.0
93.9
97.0
100.0
94.2
100.0
98.0
86.9
97.9
88.9

31

Portfolio
#
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144

Name of Property
URBAN STAGE Kumegawa
URBAN STAGE M usashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Urayasu
URBAN STAGE M inami Gyotoku II
URBAN STAGE M inami Gyotoku III
URBAN STAGE M inami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE M inami Gyotoku V
URBAN STAGE Gyotoku
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PROUD FLAT Shin Osaka
PRIM E URBAN Yamahana
PRIM E URBAN Kita Juyo Jo
PRIM E URBAN Odori Koen I
PRIM E URBAN Odori Koen II
PRIM E URBAN Kita Juichi Jo
PRIM E URBAN M iyanosawa
PRIM E URBAN Odori Higashi
PRIM E URBAN Chiji Kokan
PRIM E URBAN M aruyama
PRIM E URBAN Kita Nijuyo Jo
PRIM E URBAN Sapporo Idaimae
PRIM E URBAN Nagamachi Icchome
PRIM E URBAN Yaotome Chuo
PRIM E URBAN Aoi
PRIM E URBAN Kanayama
PRIM E URBAN Tsurumai
PRIM E URBAN Esaka I
PRIM E URBAN Esaka II
PRIM E URBAN Esaka III
URBAN STAGE Sapporo Riverfront
URBAN STAGE Kita Sanjo DoriURBAN STAGE Tsutsumidori Amamiya

Location
Higashimurayama-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Osaka-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi

Acquisition Price(thousands of yen)
1,370,000
2,150,000
1,150,000
457,000
277,000
285,000
263,000
256,000
561,000
293,000
948,000
122,339,000
682,000
724,000
1,430,000
377,000
336,000
530,000
322,000
600,000
576,200
424,000
337,900
283,200
503,700
731,600
1,110,000
428,000
724,000
632,000
1,189,096
672,000
790,000
1,535,000
3,500,000
1,450,000
969,000

Percentage ofTotal (%)
0.9
1.4
0.8
0.3
0.2
0.2
0.2
0.2
0.4
0.2
0.6
81.0
0.5
0.5
0.9
0.2
0.2
0.4
0.2
0.4
0.4
0.3
0.2
0.2
0.3
0.5
0.7
0.3
0.5
0.4
0.8
0.4
0.5
1.0
2.3
1.0
0.6

Leasable Floor Area(sqm)
2,610.05
3,692.44
1,706.46
952.06437.94611.61
542.69535.08927.33662.68
1,766.47
177,732.73
1,861.56
1,967.54
2,990.68
1,518.58
1,155.60
1,850.20
1,148.72
1,851.39
2,114.53
1,494.36
1,007.30
911.07
1,773.90
2,439.90
3,411.24
1,380.21
1,571.04
1,391.02
2,502.11
1,189.12
1,392.00
2,151.67
15,459.57
5,094.29
4,251.91

Leasable Units(units)
91
56
80
50
27
37
33
32
46
38
77
6,553
60
64
112
33
36
53
36
60
54
36
42
27
36
58
60
43
46
58
104
48
57
79
310
114
65

Occupancy Rate
(M ay 2013)(%)
99.1
100.0
100.0
97.6
92.6
64.9
100.0
93.8
100.0
90.0
98.7
96.1
97.8
100.0
96.5
94.0
96.8
100.0
100.0
98.3
96.2
100.0
100.0
96.3
97.2
96.0
100.0
100.0
88.4
100.0
96.2
93.8
94.0
92.7
97.2
97.0
100.0

32

Portfolio#

Name of Property

Location

145
146
147
148
149
150
151
152

URBAN STAGE Kamimaezu
URBAN STAGE Izumi
URBAN STAGE Tamatsukuri
Benefis Hakata Grand Suite
Benefis Yakuin M inami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite
Other Areas
Total

Nagoya-shi, Aichi
Nagoya-shi, Aichi
Osaka-shi, Osaka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Acquisition Price(thousands of yen)
1,250,000
2,800,000
906,000
830,000
351,000
396,000
693,000
545,000
28,627,696
150,966,696

Percentage ofTotal (%)
0.8
1.9
0.6
0.5
0.2
0.3
0.5
0.4
19.0
100.0

Leasable Floor Area(sqm)
3,541.43
7,543.10
2,373.10
2,176.23
897.84
1,222.34
1,854.13
1,740.70
85,228.38
262,961.11

Leasable Units(units)
101
250
80
67
34
39
65
48
2,375
8,928

Occupancy Rate
(M ay 2013)(%)
98.1
95.4
97.5
96.2
100.0
94.4
98.7
97.9
97.2
96.4

33

各種財務指標の推移
8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

Operating Revenues

million y en

4,466

4,510

4,445

5,250

5,174

5,257

Operating Profits

million y en

2,150

2,177

2,098

2,507

2,452

2,433

Net Income

million y en

1,514

1,465

1,477

1,856

1,875

1,876

Asset Total

million y en

140,614140,534

140,152

156,780

156,703

156,576

Interest-bearing Debt Total

million y en

74,676

74,606

74,216

83,182

83,092

83,002

Net Asset

million y en

63,31463,26563,27770,81870,836

70,838

2.2

2.2

2.1

2.4

2.4

2.4

Return on Assets (ROA)%

Return on Equity (ROE)

%

4.8

4.6

4.7

5.2

5.3

5.3

FP End Capital Adequacy Ratio

%

45.0

45.0

45.1

45.2

45.2

45.2

LTV

%

53.1

53.1

53.0

53.1

53.0

53.0

times

3.5

3.4

3.6

4.3

4.5

4.6

%

1.62

1.61

1.47

1.28

1.27

1.24

y ears

2.1

2.8

2.5

3.0

3.0

3.3

million y en

3,459

3,452

3,424

4,016

4,010

3,953

%

5.19

5.20

5.06

5.34

5.31

5.25

million y en

2,305

2,251

2,285

2,817

2,850

2,833

Portfolio

properties

144

143

145

152

153

152

Acquisition Price Total

million y en

133,416

132,890135,046

149,862

150,587

150,966

Book Value Total

million y en

134,701

133,564

135,196

150,099

149,972

149,650

Appraisal Value Total

million y en

121,231

121,042

124,512141,011

141,836

143,063

NAV per Unit

thousand y en

397

404

418

408

415

425

Interest Coverage Ratio
Weighted Average Interest Rate
Long-term Debt Average Remaining
Duration
Rent NOINOI Yield (acquisition price base)
FFO

ROA=Current Profits/[(Total Asset Value at Start of FP+Total Asset Value at FP End)÷2]x100 *annual basis
ROE=Net Income/[(Total Asset Value at FP Start+Total Asset Value at FP End)÷2]x100 *annual basis
Capital Adequacy Ratio at FP End=Net Asset at FP End/Total Asset at FP End x 100
LTV=Total Interest-bearing Debt at FP End/Total Asset at FP End x 100
Interest Coverage Ratio=Net Income Before Interest Depreciation/(Interest Expenses+Investment Coroporation Bond Interest)

Rent NOI=Real Estate Rental Business Revenues-Real Estate Rental Business Income+Current FP Depreciation and Amortization
NOI Yield (Acquisition Price Base)=Rent NOI/Total Acquisition Price x 100 *annual basis
FFO=Net Income+Current FP Depreciation and Amortization+Investment Corporation Bond Issuance Ammortization-Real Estate Disposition Profit & Loss
NAV per Unit=[Net Asset Total-(Income Statement Total-Appraisal Value Total)]/Total Number of Investment Units Issued

34

Interest-bearing Debts (13th Fiscal Period End)FP of Repayment

14th Fiscal Period(ending Nov. 30, 2013)

15th Fiscal Period(ending May 31, 2014)

16th Fiscal Period(ending Nov. 30, 2014)

17th Fiscal Period(ending May 31, 2015)

18th Fiscal Period(ending Nov. 30, 2015)

19th Fiscal Period(ending May 31, 2016)

20th Fiscal Period(ending Nov. 30, 2016)
21st Fiscal Period(ending May 31, 2017)22th Fiscal Period(ending Nov. 30, 2017)23th Fiscal Period

Amount of Repayment¥6,362 million¥9,290 million¥6,660 million¥7,790 million¥9,790 million¥4,790 million¥10,530 million

LenderAmountInterest Rate

Date of Loan

Date of Repayment

3 Lenders¥5,472 million

1.74250%

Sep. 29, 2008

Sep. 29, 2013

1 Lender¥800 million

1.99875%

Sep. 27, 2007

Sep. 30, 2013

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note 2）
（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note 3）
（注3）

2 Lenders¥2,000 million

2.14360%

Feb. 27, 2007

Feb. 27, 2014

Short-term Loan

1 Lender¥2,000 million

2.13625%

Feb. 27, 2007

Feb. 27, 2014￥15,652 million

3 Lenders¥1,700 million（Note 4）0.79500% （注4）

Aug. 26, 2011

Feb. 27, 2014

6 Lenders¥3,500 million（Note 4）0.79500% （注4）Sep. 30, 2011

Feb. 27, 2014

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note 2）
（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note 3）
（注3）

6 Lenders¥3,170 million

0.73000%

Aug. 27, 2012

Aug. 27, 2014

3 Lenders¥3,400 million

0.94700%

Sep. 05, 2011

Sep. 05, 2014

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note 2）
（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）
（Note 3）

1 Lender¥1,000 million

1.79200%

Feb. 26, 2010

Feb. 26, 2015

1 Lender¥1,300 million

2.23500%

May. 15, 2007

Feb. 27, 2015

5 Lenders¥5,400 million

0.96365%

Feb. 27, 2012

Feb. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note 2）
（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note 3）
（注3）

5 Lenders¥9,700 million

1.00900%

Feb. 27, 2012

Aug. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note 2）
（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）
（Note 3）

1 Lender¥4,700 million

1.00000%

Dec. 26, 2011

Dec. 26, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note 2）
（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note 3）
（注3）

2 Lenders¥9,400 million

1.11700%

Dec. 26, 2011

Jun. 26, 2016

1 Lender¥1,080 million

2.10000%

Aug. 27, 2009

Aug. 27, 2016

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note 3）
（注3）

¥1,350 million

1 Lender¥1,350 million

2.03000%

Feb. 26, 2010

Feb. 26, 2017

¥3,920 million

3 Lender¥3,920 million

1.08500%

Aug. 27, 2012

Aug. 27, 2017

¥5,420 million

6 Lender¥5,420 million

1.12013%

Aug. 27, 2012

Feb. 27, 2018

26th Fiscal Period(ending Nov. 31, 2019)¥1,600 million

4 Lender¥1,600 million

1.16500%

Dec. 03, 2012

Nov. 26, 201927th Fiscal Period(ending Nov. 31, 2019)¥1,000 million

1 Lender¥1,000 million

1.48625%

May. 23, 2013

May. 27, 2020

29th Fiscal Period(ending May 31, 2021)

1 Lender¥1,000 million

1.68200%

May. 23, 2013

May. 27, 2021

¥4,500 million
1 Lender¥3,500 million

1.62500%

May. 23, 2013

May. 27, 2021

－

－

－

¥5,000 million

1.21000%

Feb. 25, 2011

Feb. 25, 2016

¥5,000 million

1.03000%

Feb. 24, 2012

Feb. 24, 2017

－

－

－

(ending May 31, 2018)¥73,002 million
19th Fiscal Period(ending May 31, 2016)
21st Fiscal Period(ending May 31, 2017)¥5,000 million¥5,000 million¥83,002 million

19 Lenders
Investment
Corporation Bond
Investment
Corporation Bond

－

－

－

Category

Long-term Loan
￥57,350 million(Note 1) The interest rate stated regarding this loan takes into consideration the Interest Rate Swap transaction.
(Note 2) The amount of ￥40 million to be repayed on February 27, 2010, the first repayment date, and every August 27 and February 27 thereafter, until the last repayment of ￥1,080 million on August 27, 2016.
(Note 3) The amount of ￥50 million to be repayed on August 26, 2010, the first repayment date, and every February 26 and August 26 thereafter, until the last repayment of ￥1,350 million on February 26, 2017.
(Note 4) Regarding the Floating Rate, the interest rate as of the end of the 11th Fiscal Period is stated.

35

Fund Profile

Structure

History
July 28, 2006

Asset Custodian

General Administration(Financial Agent)

The FundGeneral Administration

Financial Agent
Agreement

Administration ofUnitholders Register
Management ofSpecial Accounts
Mitsubishi UFJ
Trust and Banking Corporation

Asset Custody
Agreement

The Bank
Bank ofof
The
Tokyo-Mitsubishi UFJ, Ltd.
Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui
Banking Corporation

Administration
Agreement, etc.

General Administration(Accounting, etc.)

Notification of incorporation by the founder (Nomura Real
Estate Asset Management Co., Ltd.) under Article 69 of theInvestment Trust Law.
August 3, 2006
Registration of incorporation under Article 166 of theInvestment Trust Law. Incorporation of the Nomura Real
Estate Residential Fund, Inc.

Nomura Real Estate Residential Fund, Inc.
Accounting Service
Agreement

August 4, 2006
Applied for registration under Article 188 of the Investment
Trust Law.

Unitholders Meeting

Heiseikaikeisha Tax
Corporation

Board of Directors Meeting
Financial Institutions, etc.

August 24, 2006
Registration approved by the Prime Minister of Japan under
Article 187 of the Investment Trust Law (Registration number
56, filed with the Director of the Kanto Local Finance Bureau).

AuditorErnst & Young ShinNihon LLC

Repaymentof Principal& Interest

Debt
Finance
Debt

Investment
Residential Properties(Real Estate Related Assets)
Property
Management
Property Management
Companies

Select the best property
management companies
for each property

CapitalInvestment

Asset

Trade

February 14, 2007
Listing on the Tokyo Stock Exchange.

Unitholders

EquityRent, etc.

Unitholders

Distribution
Property Management
Agreement

Instructions for
Rent &
Management
Rental Strategies,
Plans for
Repairs, etc.

Asset Management
Services Agreement
Information & ResearchService Providers

Asset Management Company
Property
Information

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.

36

Asset Management Company Overview

Statutory Auditors

Corporate Planning
Legal & ComplianceInternal Audit

Name

Nomura Real Estate Asset Management Co., Ltd.

Location

8-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo160-0023, Japan

Registrations,
License, etc.

・Financial instruments business operator registration:
Commissioner of the Kanto Local Finance Bureau(Financial Instruments) No. 374
・Licensed for discretionary proxy in realty trading: Ministerof Land, Infrastructure and Transport Permit No.18
・Licensed for real estate trading: Governor of Tokyo (2)No. 81679

Memberships

・the Investment Trusts Association, Japan; the Japan
Securities Investment Advisers Association,・the Association for Real Estate Securitization, etc.

Contact Information

Fund Management

Fund Management
Investment Management Planning

President & CEO

Board of Directors

Client Relations & Marketing
Research & Analysis Section
Investment Performance Analysis Section
Acquisitions
Asset Management

03-3365-7729
nrf3240@nomura-re.co.jp

Investment Management
New Products & Marketing
Finance
Accounting

Project Screening Committee

NPR Valuation Committee

Risk Management Committee

Compliance Committee

Chief Investment Officer, NOF

Investment Committee

General Meeting of Shareholders

Board of Statutory Auditors

Structure （ as of July 17, 2013 ）Chief Investment Officer, NRF
Chief Investment Officer, NPR
Chief Investment Officer, NMF
Chief Investment Officer, Private Fund Ⅰ
Chief Investment Officer, Private Fund Ⅱ
Chief Investment Officer, Private Fund Ⅲ
Chief Investment Officer, Private Fund Ⅳ
Chief Investment Officer, Investment Advisory37

This document has been prepared for the purpose of provision of information only, and should not be construed
as an offer, solicitation or commercial conduct of any nature associated with any specific products. Investors
wishing to purchase the investment units of Nomura Real Estate Residential Fund, Inc. should contact their own
securities brokers or dealers. A fee may be charged by your financial instruments business operator in relation
to the sale or purchase of investment units.
For management fees that the Fund pays to Nomura Real Estate Asset Management Co., Ltd., please refer tothe terms and conditions of the Fund, asset management reports, etc.
The forward-looking statements with respect to the future financial results contained in this document are basedon the current facts about the investment policy of the Fund, applicable laws and regulations, the market
environment, business practice, etc., as of the preparation date of this document and do not reflect or consider
any changes in the circumstances after the preparation date. These forward-looking statements inherently
reflect uncertainty about known risks as well as unknown risks and other factors and may deviate from theactual operating and management results, financial conditions, etc., of the Fund.

Investment in real estate investment securities may result in a loss due to a decline in the transaction pricecaused by, for example, changes in the price or the revenue-generating capability of the underlying properties
or deterioration of the financial conditions of the issuer.
Although the information contained in this document is intended to be complete and thorough, there is no
assurance of precision and safety of the same. Please note that the contents of this document is subject tochange or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information
contained in this document without express prior written consent.