For Immediate Release

June 14, 2013
Nomura Real Estate Office Fund, Inc.
Yuichi Maruko, Executive Director(Securities Code: 8959)
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Yasuaki Fukui, President and Chief Executive Officer
Inquiries:
Tadanori Irie, Chief Investment Officer, NOF
TEL: +81-3-3365-0507

Nomura Office Fund Announces Financial Results
for the Fiscal Period Ended April 30, 2013

Nomura Real Estate Office Fund, Inc. (“Nomura Office Fund”, “NOF” or the “Fund” hereafter) (TSE: 8959) (URL:
http://www.nre-of.co.jp/english/), announces its financial results for the nineteenth fiscal period (November 1, 2012
to April 30, 2013).
1. Outline of Financial Results for the Fiscal Period Ending April 30, 2013
(Omit fractions under one million yen)
(Ratio of increases and decreases in comparison with the previous period)(1) Operating Results
Operating Revenues
Period Ended
April 30, 2013
October 31, 2012

Millions of

yen

(%)

12,673
12,701Millions of yen

4,026
3,912

Millions of yen(-0.2)
(2.1)

5,544
5,482

Net Income
per Unit

Net Income
Period Ended
April 30, 2013
October 31, 2012

Operating Profits

(%)

(2.9)
(0.3)

Ordinary Income(%)

Millions of yen

(%)

(1.1)
(-0.8)

4,027
3,913

(2.9)
(0.3)

ROE
(Return on
Equity)(Note 1)

ROA(Return on
Assets) (Note 2)

Ordinary Income
to Operating
Revenues Ratio

%

%

%

yen

13,195
12,824

2.1
2.1

1.0
1.0

31.8
30.8

(Note 1)ROE is equal to a fiscal period's Net Income/{(Net Assets at the beginning of the period + Net Assets at the end of the period)/2 } × 100.
(Note 2)ROA is equal to a fiscal period's Ordinary Income/{(Total Assets at the beginning of the period + Total Assets at the end of the period)/2 } × 100.

(2) Distributions
Cash
Distributions
per Unit

Total CashDistributions(Note1)

Period Ended
April 30, 2013
October 31, 2012

yen

12,412
12,824

Distributions in
Excess of Net
Income per
Unit

Distributions
in Excess of
Net IncomeyenMillions of yen

Millions of yen

3,787
3,912

0
0

0
0

Distributions
to Net Asset
Ratio

PayoutRatio(Note2)

%

94.0
99.9

%

2.0
2.1

(Note 1) Cash Distributions per Unit for the period ended April 30, 2013 is calculated by dividing the amount after adding the provision of reserve for reduction
entry (¥239 million) to unappropriated retained earnings by the number of investment units issued and outstanding.
(Note 2) Payout Ratio is rounded off to the first decimal place.

－1－(3) Financial Position
Total Assets
Period Ended
April 30, 2013
October 31, 2012

Capital Adequacy
Ratio

Net Assets

Millions of yen

Millions of yen

393,914397,375%

189,581
189,468(Reference) Owned Capital: As of April 30, 2013

JPY189,581mln

Net Assets per Unit
yen

48.1
47.7

As of October 31, 2012

621,329
620,957

JPY189,468mln(4) Cash Flows
Cash Flows fromOperating
Activities
Period Ended
April 30, 2013
October 31, 2012

Cash Flows from
Investing Activities

Millions of yen

Cash Flows from
Financing Activities

Millions of yen

8,935
6,224

Cash and Cash
Equivalents
at End of Period

Millions of yen-1,609-908

Millions of yen-7,360-4,64927,32427,358

2. Forecasts of Financial Results for the Fiscal Period Ending October 31, 2013 (From May 1, 2013 to October
31, 2013)
Operating
Revenues
Period Ending
October 31, 2013

Millionsof yenOperating
Profits

Ordinary
IncomeNet Income(%)

Millionsof yen(%)

Millionsof yen12,249 (-3.3)

5,033(-9.2)

3,569 (-11.4) 3,568 (-11.4)(%)

Millionsof yen(%)

CashDistributions
per Unit

Distributions
in Excess of
Net Income
per Unityen

yen

10,0000(Reference) Forecast Net Income per Unit: JPY9,579

3. Others(1) Changes in Accounting Policies
a. Changes in accounting policies due to revisions in accounting standards: Noneb. Changes not mentioned in a. above: Nonec. Changes in accounting estimate: None
d. Retrospective restatement: None
(2) Number of investment units issued
a. The number of investment units issued (including treasury investment units)
As of April 30, 2013
305,123
As of October 31, 2012
305,123b. The number of treasury investment units
As of April 30, 20130
As of October 31, 20120(Note) Net income per unit is calculated by dividing net income by the weighted-average number of units
outstanding for the respective six-month period. Net income per unit after adjusting for diluted units is notstated because there are no diluted investment units.
Forecast Statements
The forecasts above are based on information currently available to NOF and on a certain condition deemed tobe reasonable. The actual results may vary due to many factors. Accordingly, NOF does not guarantee the cash
distribution amount identified above.

－2－

Assumptions for Forecasts of Financial Results for the Fiscal Period Ending October 31, 2013
Item
Assumptions
Period・ Twentieth fiscal period: May 1, 2013 through October 31, 2013
・ The Fund assumes that the investment portfolio consisting of 50 properties ownedby the Fund as of the end of the nineteenth fiscal period (the “Acquired Properties”)
and has scheduled to acquire further 3 more properties concerning Otemachi
Tatemono Gotanda Building, PMO Nihonbashi Odenmacho, and NF Hongo
Building (the “Newly Acquired Properties”) up to the end of the twentieth fiscal
Investment
period (October 31, 2013). Scheduled date of acquisition is July 5, 2013.
Portfolio
・ The forecasts are based on the assumption that the Newly Acquired Properties has
acquired and the investment portfolio will remain unchanged thereafter up to the endof the twentieth fiscal period (ending October 31, 2013)
・ In practice, the investment portfolio is subject to potential change.
・ The forecasts of the level of the rent and vacancy rates are based on the operating
revenues from Acquired Properties, the information provided from the sellers of
Operating
Newly Acquired Properties, the trend of tenants, competing buildings in the
Revenuesneighborhood, and the recent real estate market trend, etc.
・ Assumed that there is no rent in arrears and nonpayment of the rent.
・ In general, the fixed asset taxes and urban planning taxes imposed on the properties
in the tax year (including the date) of transaction are distributed to the seller and thepurchaser on a daily pro-rata basis and settled at the time of acquisition, and suchtaxes are deemed as the acquisition costs, not expenses.
・ Taxes related to the 50 Acquired Properties estimated amount of ¥1,119 million arecalculated as rental expenses.
・ Outsourcing expenses are estimated at ¥1,403 million.
・ As for the repair and maintenance, the Asset Management Company (Nomura Real
Estate Asset Management Co., Ltd.) estimates the required amounts for the
Operatingrespective properties for each of the fiscal periods based on the medium- andExpenseslong-term repair plans. However, it is possible that the actual repair expenses for the
fiscal periods may differ significantly from the estimates since (i) an unforeseeable
event might cause serious damage to a building requiring emergent repair
expenditure, (ii) amounts might vary year by year, and (iii) certain types of repair
expenses are not required every year.
・ Rental expenses (including depreciation costs) are estimated at ¥6,042 million.
Depreciation costs are estimated at ¥1,681 million.
・ The operating expenses other than the rental expenses (including asset custody fees
and general administration fees) are estimated at ¥1,070 million.
・ Non-operating expenses requires temporarily for the public offering, determined at
the Board of Directors Meeting on June 14, 2013, is estimated to be ¥54 million.
Non-Operating
Expenses・ Interest payable is estimated at ¥1,262 million.
・ Loan-related expenses are estimated at ¥91 million.
・ The amount of the Fund’s interest-bearing debts outstanding as of today is ¥139,700
million of loan and ¥39,500 million of investment corporation bonds. The Fund
intends to use planned amount of the proceeds from the issue of new investment
units through public offering and secondary offering for acquiring properties.
Remaining funds, if any, will be applied to repayment of interest-bearing debts.
・
The Fund assumes that, after the repayment of ¥15,800 million of agreed
Interest-Bearing
repayments and the scheduled repayment of ¥250 million in the twentieth fiscal
Debts
period (October 31, 2013), the total amount of loan debts at the end of the fiscal
period will be ¥163,150 million.
・ There will be no changes in debt amounts and the interest rates up to and including
the end of the twentieth period (ending October 31, 2013); provided, however, that
the Fund may not repay the above amount of debts depending upon the issue priceof the investment units to be issued additionally.
・ The Fund assumes that, in addition to the current 305,123 investment units issued, atotal of 67,430 investment units will be issued through public offering of new
Investment Units
investment units (62,730 units) and the third-party allotment (up to 4,700 units).
・ The Fund assumes that no additional investment units will be issued until the end of－3－the twentieth fiscal period.
・ Net income per unit and cash distribution per unit are calculated on the basis of372,553 units, the calculated number of investment units at the end of each fiscal
period, including the units being issued in the current offering.
・ Cash distribution per unit is calculated according to the Fund’s distribution policy
outlined in its Articles of Incorporation.
・ The Fund will break down and distribute the reserve for reduction entry; theCash Distribution
assumed amounts are the 156 million yen in the twentieth fiscal period (October 31,
per Unit2013).
・ Cash distribution per unit may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by the tenant replacements, andunforeseen repairs.
Distribution in
・ The Fund does not currently plan any distribution in excess of net income per unit.
Excess of Net
Income per Unit
・ The Fund assumes that there will be no amendments in legislation, taxation, Japanese
GAAP, listing requirements and Investment Trusts Association regulations, which
Othersaffect the above forecasts.
・ The Fund assumes that there will be no material changes in general economic
conditions and real estate markets.

－4－4. Financial Statements(1) Balance Sheets

AssetsCurrent Assets
Cash and bank deposits
Cash and bank deposits in trust
Rental Receivables
Prepaid expenses
Deferred tax assets
Other current assets
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Leased assets in trust
Accumulated depreciation
Leased assets in trust, net
OthersTotal property, plant and equipment
Intangible assets
Leasehold rights
Other intangible assets in trust
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Security deposits
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

18th Period
As of Oct. 31, 2012(¥000)

238,626
317,239,720－5－

19th Period
As of Apr. 30, 2013(¥000)

10,907,460
16,451,245
259,984
78,843
5
383,088
28,080,627

10,570,955
16,753,613
207,075
86,89320
326,015
27,944,573

31,097,673(3,889,103)
27,208,569
92,224(34,317)57,906696,224(205,411)
490,812
16,520(6,016)
10,504
61,683,840
95,843,378(21,011,755)
74,831,623
274,931(187,286)
87,645
952,695(576,400)
376,294
299,640(161,937)
137,702
201,783,441
33,956(25,882)
8,073
43,688366,720,102

31,179,074(4,245,881)
26,933,192
92,224(37,974)
54,250706,907(226,653)
480,254
19,387(7,106)
12,28061,683,840
94,157,264(21,647,659)
72,509,604
260,370(185,134)
75,235915,784(558,192)357,591
331,351(173,487)
157,864
201,040,928
57,100(23,352)
33,74763,002
363,401,792

1,900,904
1,301
1,902,206

1,900,904
1,037
1,901,942

165,814
410,850
576,664
369,198,972

169,665
410,880
580,545
365,884,280

95,43995,439397,375,039

85,63085,630393,914,483

18th Period
As of Oct. 31, 2012(¥000)
Liabilities
Current liabilities
Trade accounts payable
Short-term debt
Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Deposits received
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Security deposits from tenants
Security deposits in trust from tenants
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve

Reserve for reduction entry
Total voluntary reserve

Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets－6－

19th Period
As of Apr. 30, 2013(¥000)

1,070,696
1,000,000
29,000,000
3,809
1,000,116
712,135
192
242,666
1,874,977
61,962
34,966,557

922,741－
24,000,000
8,148
1,488,513
584,953477
196,747
1,832,404
519,339
29,553,325

39,500,000
113,150,000
4,786
4,167,363
16,117,894
172,940,044
207,906,601

39,500,000
115,700,000
27,415
4,077,558
15,474,253
174,779,226
204,332,551

185,455,446

185,455,446

100,000
100,000
3,912,991
4,012,991
189,468,438
189,468,438
397,375,039

100,000
100,000
4,026,484
4,126,484
189,581,931
189,581,931
393,914,483

(2) Statements of Income and Retained Earnings

18th Period
from May 1, 2012
to Oct. 31, 2012(¥000)

Operating revenues
Real estate rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenues
Operating expenses
Real estate rental expenses
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensations
Other operating expenses

11,350,853
1,350,832

Total operating expenses
Operating profit
Non-operating revenues
Interest income
Penalty income
Insurance income
Reversal of cash distributions payable
OthersTotal non-operating revenues
Non-operating expenses
Interest expenses
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
Loan arrangement fees
OthersTotal non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)－7－

19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥000)－
12,701,685

11,189,423
1,245,038
239,120
12,673,582

6,040,300
996,041
28,662
63,734
10,80079,414

5,967,797
974,346
28,65164,3358,000
85,702

7,218,953

7,128,834

5,482,732

5,544,747

2,609
30,053

2,656

－
5,630

－
8,294
6,536

3,671
41,96475
17,563

1,023,648
392,065
9,808
119,494
65,722
1,610,739
3,913,957
3,913,957
1,004
9
1,013
3,912,944
46
3,912,991

902,901
386,591
9,808
103,203
132,413
1,534,918
4,027,392
4,027,392
1,016
(14)
1,002
4,026,390
94
4,026,484

(3) Statements of Changes in Net Assets
18th Period
from May 1, 2012
to Oct. 31, 2012(¥000)

Unitholders' equity
Unitholders' capital
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Surplus

19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥000)

185,455,446

185,455,446－
185,455,446－
185,455,446

100,000

100,000

Voluntary reserve
Reserve for reduction entry

Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period－－

100,000

100,000

100,000

100,000

Total voluntary reserve

Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total surplus
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total unitholders' equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period

－8－

－

－

100,000

100,000

3,902,570

3,912,991(3,092,523)
3,912,944
10,421
3,912,991(3,912,897)
4,026,390
113,493
4,026,484

4,002,570

4,012,991(3,902,523)
3,912,944
10,421
4,012,991(3,912,897)
4,026,390
113,493
4,126,484

189,458,017

189,468,438(3,902,523)
3,912,944
10,421
189,468,438(3,912,897)
4,026,390
113,493
189,581,931

189,458,017

189,468,438(3,902,523)
3,912,944
10,421
189,468,438(3,912,897)
4,026,390
113,493
189,581,931

(4) Statements of Cash Distributions

I. Unappropriated retained earnings
II. Total cash distributions(cash distributions per unit)
III. Voluntary reserve
Provision of reserve for reduction
entry
VI.Retained earnings brought forward
Methodamountfor

calculating

distribution

18th Period
from May. 1, 2012
to Oct. 31, 2012(¥)
3,912,991,375
3,912,897,352(12,824)19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥)
4,026,484,621
3,787,186,676(12,412)－239,120,122

94,023

177,823

In order to qualify for special tax
treatment under Article 67-15 ofSpecial Taxation Measures Law (Law
No. 26 of 1957) , the Fund decided
to have maximum cash distribution
amount treated as deductible
dividends, the Fund distributed theentireunappropriatedretainedearnings except for fractionalamounts smaller than one yen pereach investment unit. As a result, thetotal amount of cash distribution for
thisfiscalperiodwas¥3,912,897,352.
Furthermore, the Fund shall not
distribute cash in excess of earnings
as stipulated in Article 34 Item 2 ofits articles of incorporation.

－9－

The Fund decided to accumulatecompression reserves utilizing Article66-2 of the Special Taxation
Measures Law within the limit oftaxable income in the period. In
addition, in order to qualify forspecial tax treatment under Article
67-15 of Special Taxation Measures
Law (Law No. 26 of 1957) , theFund decided to have maximum cash
distribution amount treated as
deductible dividends, the Fund
distributed the entire unappropriatedretainedearnings except
forfractional amounts smaller than one
yen per each investment unit. As aresult, the total amount of cash
distribution for this fiscal period was¥3,787,186,676.
Furthermore, the Fund shall not
distribute cash in excess of earnings
as stipulated in Article 34 Item 2 ofits articles of incorporation.

(5) Statements of Cash Flows

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of investment corporation bond issuance costs
Interest income
Interest expenses
Loss on disposal of property and equipment(Increase)Decrease in rental receivables
Decrease in consumption taxes receivable
Increase (Decrease) in trade accounts payable(Decrease) Increse in other accounts payable
Increase (Decrease) in accrued consumption taxes(Decrease) in rent received in advance(Decrease) Increase in deposits received
Decrease in tangible fixed assets in trust due to sales
Others, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for purchases of property, plant and equipment
Payments for purchases of property, plant and equipment in trust
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits in trust to tenants
Proceeds from security deposits in trust from tenants
Net cash used in investing activities
Cash flows from financing activities
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Distributions to unitholders
Net cash used in financing activities
Net Increase (Decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－10－

18th Period
from May 1, 2012
to Oct. 31, 2012(¥000)

19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥000)

3,913,957
1,669,892
10,7399,808(2,609)1,415,714
2,599(38,986)
157,794434,223(40,102)242,666(19,430)(21,336)－(54,278)
7,680,652
2,609(1,457,935)(1,115)6,224,211

4,027,392
1,654,767
11,1339,808(2,656)
1,289,493
18,69652,909－(147,954)
314,677(45,919)(42,573)457,377
2,718,926
33,812
10,349,891
2,656(1,416,428)(732)
8,935,387(67,081)(695,413)(115,546)
65,722(302,380)
206,425(908,273)(55,253)(820,383)(268,502)
178,697(943,181)
299,540(1,609,084)(2,900,000)
29,900,000(27,750,000)(3,899,919)(4,649,919)
666,017
26,692,687
27,358,705(1,000,000)
22,500,000(24,950,000)(3,910,440)(7,360,440)(34,136)
27,358,705
27,324,568

Disclaimer
The information above is excerpt of and translated from Brief Report on Closing of Accounting Report (“Kessan
Tanshin”) in Japanese released on June 14, 2013. This report was prepared in English solely for the convenience of andreference by readers outside Japan and should not be considered to be a disclosure statement. The original Japanese
documents always govern the meaning and interpretation. To confirm complete information, please refer to the original.
(Japanese version) http://www.nre-of.co.jp/site/file/tmp-t3XwF.pdf
In general, accounting principles and practices used by real estate investment corporations in Japan (“J-REITs”) in
preparing its financial statements conform to accounting principles generally accepted in Japan (“Japanese GAAP”).
However, they may differ from generally accepted accounting principles applied in certain other countries. Potential
investors should consult their own professional advisors for an understanding of the differences between Japanese
GAAP and generally accepted accounting principles in the United States (“U.S. GAAP”) or other jurisdictions and how
those differences might affect the financial information contained herein.
Estimates for Nomura Office Fund’s future operating results contained in this report are forward-looking statements andare based on information currently available to Nomura Office Fund and its asset management company and are subject
to risks and uncertainties. Consequently, these projections should not be relied upon as the sole basis for evaluating
NOF. Actual results may differ substantially from the projections depending on a number of factors.
This document has been prepared for the purpose of provision of information only, and should not be construed as anoffer, solicitation or commercial conduct of any nature associated with any specific products. Investors wishing topurchase the investment units of Nomura Real Estate Office Fund, Inc. should contact their own securities brokers or
dealers.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information containedin this document without express prior written consent.

－11－