Third Fiscal Period Financial Results(ended May 2008)

Basic Principles

Nomura Real Estate Residential Fund, Inc. (the “Fund”) will adhere to the following basic principles in order to
execute fund management in accordance with solid investment policies for investment in residential properties:

Strategy

The Fund will aim to secure stable mid-to-long-term earnings through the strategic selection of properties
and expert asset management based on sufficient understanding of “tenant demands” reflecting thecharacteristics of residential rental property investments and market trends.

Acquisition

The Fund will create a stable portfolio with consideration to rent levels, geographic area, building age,
property type, etc., through the continuous acquisition of “PROUD FLAT” properties from the Nomura Real
Estate Group and “PRIME URBAN” and “URBAN STAGE” properties from other sources utilizing oursourcing expertise.

Asset Management

To maximize the long-term profitability and asset value of the properties under management, the Fund will
select the “optimal property management company corresponding to the characteristics of the property,”
and, at the same time, implement flexible and organized leasing and renewal strategies corresponding totenant trends, aging of the portfolio and increase of the number of properties under management.

Finance

The Fund will establish a strong financial base such as “conservative LTV ratio,” ”appropriate control ofinterest fluctuation risk through the lengthening of loan periods and fixing of interest rates,” and“diversification of lenders,” in order to manage the Fund in a stable manner with minimum impact fromfinancial market conditions.

Compliance

The Fund will implement fair and transparent fund management through prevention of conflict of interestsand enforcement of compliance to maintain our position as a “REIT committed to meeting the trust andexpectations of the investors.”

Contents

Fund Management Results

Highlights of the Third Fiscal Period (ended May 31, 2008)
 Highlights of the Third Fiscal Period

2Fund Management Summary

 Results of Investment(1) Agreements Concluded in the Third Fiscal Period

17(2) Acquisitions from Nomura Real Estate Development

18(3) Acquisitions from External Providers(4) Acquisitions During the Third Fiscal Period

 Investment Strategy - Seek Stable Revenues(1) Target Tenants, Property Selection Standards

4 Portfolio Map(2) High Level of Portfolio Diversification5

 Portfolio Status

19～24
25
26～27
28

 Results of Management

 Investment Performance(1) Acquisitions After Listing

6(1) Portfolio Occupancy Rate

29(2) Growth of Asset Size

7(2) Market Penetration of Property Brands

30(3) Utilization of the Sourcing Capabilityof Nomura Real Estate (PROUD FLAT)

8(4) Securement of Stable Revenue
from the Time of Acquisition9

 Management Strategy

10 TOPICS: Modification in Asset Management Fee

11 Financial Performance31

 Status of Financing

32

APPENDIX Portfolio

Overview of the Financial Results

34～37 Scheduled Acquisitions After the 3rd Fiscal Period38

 Interest-bearing Debts

39

 Income Statement13 Unitholders

40 Balance Sheet

14 Organization of the Asset Management Company

41

 Forecasts for the Fourth Fiscal Period

15

Highlights of the Third Fiscal Period

1Highlights of the Third Fiscal Period

Notable Activities
Property Acquisitions

Asset Management

Finance Establish the “Securement of Tenants for Portfolio
Property” as the maximum priority and strengthen
leasing Concluded Agreements:
14 Properties/¥19,022 million⇒ Portfolio including scheduled acquisitions
137 Properties/¥119,303 million

Operating Properties:
Realize smooth tenant turnovers bycomprehending tenant move-outs beforehand Concluded Acquisitions:
34 Properties/¥34,910 million(includes scheduled acquisitions from 2nd FP)

 Secure conservative financials and acquisition
capacity through capital increase Establish an optimum interest-bearing debt portfolio
Property Acquisition:
Fully utilize the highly flexible Credit Loan Program

Newly Built Properties:
Attain a high level occupancy rate early on
through aggressive advertising etc.

⇒ Portfolio of acquired properties
131 Properties/¥110,330 million

Refinancing:
Enhance financial conservativeness through“Long-term (5 years/3 years)” “Fixed Interest
Rate” Term Loans (Approx. ¥10.5 billion) Portfolio Occupancy Rate at 3rd FP end: 93.9%

Financial Overview
Third Fiscal Period(ended May 2008)

Comparison with Forecasts(released January 21, 2008)

Number of Business Days

183 days

Operating Revenues¥3,261 million+

Current Profits
Net Income

Cash Distribution Per Unit

Fourth Fiscal Period Forecast（参考）第4期（08年11月期）予想(ended November 2008)－－

183 days¥35 million+ 1.1 ％

¥3,806 million¥1,174 million+ ¥104 million+ 9.8 ％

¥1,348 million¥1,173 million+ ¥104 million+ 9.8 ％

¥1,347 million¥12,127+ ¥1,084+ 9.8 ％

¥13,9202

Fund Management Summary

3

Investment Strategy (1) Seek Stable Revenues (Target tenants, Property selection standards)

Characteristics of Residential Rental Property Investments(In comparison to other asset categories)

Targeting of Tenant Classes
with Higher Potential for Stable Rent
Target Tenant Classes of the FundAs expense applied for living headquarters,
influence from economic fluctuations islimited and has been historically stable

Rent Stability

TargetMiddle class tenants,
mainly coporate employees
in their 20s and 30s and students.

Priority on certain level of convenience forcommuting and rent.

Features

Changes in Rent Level of Residence and Other Real Estate
Private housing rent
(Tokyo ward area, non-timber house)(1989=100)

‟90

‟91

‟92

‟93

‟94

‟95

‟96

‟97

‟98

‟99

‟00

‟01

‟02

‟03

Priority on location, floor plan andspecifications/equipments.

Priority on prime metropolitan location,
property grade, value-added services, etc.

Annual income (disposable) is stable.
Less likely to be affected by economic trends.

Annual income (disposable) is relatively stable.
Relatively less likely to be affected by economic
trends.

Annual income (disposable) is likely to beaffected by economic trends.

less than ￥100,000/month(generally)￥100,000-￥150,000/month(generally)

over ￥150,000/month(generally)

Other real estate rent
Rent

‟89

Upper middle class tenants,
such as foreign company employees.

Other Tenant Classes
Upper class tenants, such as companies with
employee rent support programs, businessowners, management class emplayees offoreign companies.

‟04

‟05

‟06

„07

Property Selection Based on Strong Tenant Demand

Source: Ministry of Internal Affairs and Communications “Report on the Consumer Price Index”
Bank of Japan “Corporate Service Price Index”

Rent Level

×
AccessSelection of tenants and properties withhigh stability, even within the, on average,
stable rent levels of residential rental
properties.

×
Commuting Time

(Average rent/unit: Approx. ¥90,000*)

Property Size
*Based on 131 properties owned at Third Fiscal Period end.

Appropriate rent level for target tenants
Railway lines that are well-known,
Railway lines directly connected tolarge hub station
Target tenant‟s commuting time totheir work/school place

Number of units where leasing-up withina short time-frame is possible(generally up to approx. 100 units* for new unoccupied buildings)*Excluding sub-lease properties, etc.

4

Investment Strategy (2) Seek Stable Revenues (High Level of Portfolio Diversification)

Characteristics of Residential Rental Property Investments(In comparison to other asset categories)

Diversification

Utilizing Various Sourcing Routes

Easily able to diversify risk as theinvestment scale per property is small
with larger number of tenants

Advantage of having the
Nomura Real Estate Group
as a sponsor

Strength of having approximately 7 yearsof management experiences including
private funds

PROUD FLATPRIME URBAN

URBAN STAGE

Properties planned/developed by
Nomura Real Estate Development

Properties planned/developed bycompanies other than
Nomura Real Estate Development

Properties planned/developed bycompanies other than
Nomura Real Estate Development<Age of Building: Approx. 1 year or less><Age of Building: Approx. 1 year or more>・Seek a high level of portfolio diversification
・Further promotion of diversification throughadditional acquisition of prime properties

Brand<Age of Building: Approx. 1 year or less>Third Fiscal Period(ended May 31, 2008)
Top 5 Properties¥13.3 billion

Other 121 Properties¥85.9 billion

Top 10 Properties¥24.4 billion*Based on 131 properties owned at Third Fiscal Period end.

Strategic Cooperation with
Nomura Real Estate
Development
Acquisition
Strategy

The strategic cooperation with Nomura Real
Estate Development enables the Fund toundertake the development and acquisition of
PPROUD FLAT, a residential property brand,which utilizes residential property related knowhow for land acquisition, product planning,
management, etc. This plays the pivotal role of
the Fund‟s growth strategy and the Fund will
utilize it to the full extent.

Utilization of Networks with Providers
Utilization of Nomura Real Estate Group Information Networks
Proactively utilizing the network with providers built through the management of private funds
which extends over 5 years and the Fund‟s management which extends over 1 year. By utilizing
the expansive brokerage network held by Nomura Real Estate Group, pursuit of collecting
adequate information on properties for selling will be fulfilled.

By utilizing the advantage of having various sourcing
routes, and balancing the brands of the properties,
prime properties have been additionally acquired5Investment Performance (1) Acquisitions After Listing

Stable Acquisition Performance through diverse sourcing routes(millions of yen)
PROUD FLAT
Property NamePROUD FLAT Yokohama

1st Fiscal Period(After Listing)
13 Properties￥9,334 million

2nd Fiscal Period
21 Properties￥21,366 million

3rd Fiscal Period

1 Property
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Shinotsuka
PROUD FLAT Monzen Nakacho II
PROUD FLAT Shirogane Takanawa *PROUD FLAT Monzen Nakacho I *6 Properties
PROUD FLAT Kamioooka
PROUD FLAT Kawaramachi *PRIME URBAN
Price

Property Name

Price

2,340 PRIME URBAN Miyanosawa

576
283
632
536
600
424
337
503
731
1,189
5,813
900
3,580
464
503
640
840
645
413

PRIME URBAN Maruyama
PRIME URBAN Kanayama
PRIME URBAN Senzoku
PRIME URBAN Kita Jyuichi Jo
PRIME URBAN Odori Higashi
PRIME URBAN Chiji Kokan
PRIME URBAN Kita Nijuyo Jo
PRIME URBAN Sapporo Idaimae
PRIME URBAN Tsurumai *2,340
10 Properties
800 PRIME URBAN Denenchofu Minami
1,010 PRIME URBAN Meguro Ohashi Hills
695 PRIME URBAN Meguro Riverside
650 PRIME URBAN Nishi Waseda
3,510 PRIME URBAN Nakano Kamitakada
1,130 PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court

7,795
8 Properties
2,770 PRIME URBAN Nagamachi Icchome
724 PRIME URBAN Yaotome Chuo

14 Properties￥19,022 million
2 Properties

URBAN STAGE

3,494

Property Name

OthersPrice

Property Name
Benefis Hakata Grand Sweet
Benefis Yakuin Minami

-

Price
830
351

URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Minami Gyotoku V
URBAN STAGE Gyotoku

2,150 Benefis Kashii Verbena
561 Benefis Hakata Higashi Grand Sweet
293 Benefis Chihaya Grand Sweet
948

4 Properties
URBAN STAGE Hongo Ikizaka
URBAN STAGE Shinjuku Ochiai
URBAN STAGE Kamikitazawa
URBAN STAGE Shinkawa
URBAN STAGE Kawasaki

3,952
3 Properties
647 Koganei Habitation
635 Musashino Green Hills
738
2,250
1,150

1,634
2,390
1,590

2 Properties

3,980

-

-

7 Properties

6,795

PRIME URBAN Kawaguchi
PRIME URBAN Chitose Funabashi *PRIME URBAN Esaka III *

7,985
1,110
428
2,170
885
1,535

5 Properties
PRIME URBAN Shinyurigaoka *6,128
5 Properties
1,210 URBAN STAGE Tsutsumidori Amamiya

5,420

2 Properties

1,181
396
693
545

969

4th Fiscal Period(as of July 17, 2008)
2 Properties￥2,179 million--

1 Property

1,210

1 Property

969

9 Properties

13,62924 Properties

21,13610 Properties

10,341Total
50 Properties￥51,901 million(Note) The properties mentioned above are the Fund's portfolio from the day of listing to July 17, 2008. The price refers to the acquisition price, which are rounded down to the nearest million.
(Note) The building names with a (*) mark are tentative names.

・Achieved stable property acquisition in all property brands
・Strengthened sourcing routes through the acquisition performance from the external providers

6

Investment Performance (2) Growth of Asset Size

Stable Growth of Portfolio after Listing

Promotion of Portfolio Diversification(Billions of Yen)First Fiscal Period (ended May 2007)200
Scheduled Acquisitions
Acquired Properties

Top 5 Properties¥9.9 billion

Growth of 50 Properties￥51.9 billion

150
137 Properties￥ 119.3 billion

139 Porperties￥ 121.4 billion

Share per Property
Top 10 Properties¥16.8 billion

123 Properties￥ 100.2 billion

100
89 Properties￥ 69.5 billion

1.12%

Other 79 Properties¥50.1 billion

102 Properties￥ 78.9 billion

Promotion of portfolio diversification
through the growth of portfolio

50

Third Fiscal Period (ended May 2008)
Top 5 Properties¥13.3 billion

0Feb. 2007(Listing)

May 2007(End of 1st FP)

Nov . 2007
(End of 2nd FP)

May 2008(End of 3rd FP)

July 2008(At Present)

Share per Property
0.76%

Mid-term Asset Target: Total Asset ¥300 billion⇒ Realize a considerable stable portfolio

Other 121 Properties¥85.9 billion

Top 10 Properties¥24.4 billion

Aim to realize for the mid-term target through continuous growth,
fully utilizing the sponsor‟s resources (warehousing, etc.)

7

Investment Performance (3)Utilization of the Sourcing Capability of Nomura Real Estate (PROUD FLAT)
Multi Condominium Project by the Sponsor
Plus Stable Revenues by the Long-term Lease
PROUD FLAT Kamioooka

 Cooperative development with several other condominiums(PROUD)⇒ Benefits higher potential from the improvements of thesurrounding area
 Long-term lease with major car manufacturer as a dormitory

Sourcing in Major Cities
PROUD FLAT Kawaramachi(tentative name) Utilizing the headquarters of the sponsor in 3 major
metropolitan areas etc.
(Ref.) Nomura Real Estate Development‟s allotment saleareas excluding the Tokyo Area

→ Kansai Area, Nagoya Area, Sendai Area

⇒ In addition to the high quality merchantability mentioned
above, stable revenues for the mid to long term is secured

Advantage of having Nomura Real Estate, a developer of condominiums, as a “strong sourcing route”

8Investment Performance (4)Securement of Stable Revenue from the Time of Acquisition
Adopting Rent Guarantees by
Property Management Companies
Property Name

Location

Leasable
Units(Scheduled) (Scheduled)Completion Acquisition
Date
PeriodChanges in rental income of newly developed properties (image)High
Occupancy
Rate

PRIME URBAN Denenchofu Minami

Ota-ku, Tokyo

44 units

Mar. 2008

3rd FPPRIME URBAN Kawaguchi

Kawaguchi-shi, Saitama

98 units

Feb. 2008

3rd FPPRIME URBAN Sapporo Idaimae

Sapporo-shi, Hokkaido

58 units

Feb. 2008

3rd FPPRIME URBAN Nagamachi Icchome

Sendai-shi, Miyagi

60 units

Jan. 2008

3rd FPPRIME URBAN Yaotome Chuo

Sendai-shi, Miyagi

43 units

Jan. 2008

3rd FP

Benefis Kashii Verbena

Fukuoka-shi, Fukuoka

39 units

Feb. 2008

3rd FP

Regular properties

Cash flow increase in accordancewith the progress of lease-up

Properties adopting rent guarantees, etc.

Benefis Hakata Higashi Grand Sweet

Fukuoka-shi, Fukuoka

65 units

Mar. 2008

3rd FP

Benefis Chihaya Grand Sweet

Fukuoka-shi, Fukuoka

48 units

Mar. 2008

3rd FPPRIME URBAN Shinyurigaoka (tentative name) Kawasaki-shi, Kanagawa

64 units

Feb. 2009

5th FPPRIME URBAN Tsurumai (tentative name)

104 units

Jul. 2008

5th FP

Nagoya-shi, Aichi

Secure stable cash flow from thestart of the operation

Low
Occupancy
Rate Commence Leasing(Time of Completion)

Lease-up Period(After Completion)

Period of Stable
Occupancy Rate

Conclusion of Long Term Lease Agreement
Property NamePROUD FLAT Kamioooka

Location

LeasableUnits

Completion
Date

Acquisition
Date

Yokohama-shi, Kanagawa

200 unitsMar. 2008

3rd FP

Adopting the best method, taking into account the area‟s market size, time of completion, etc.

9Management Strategy
Maintaining and Enhancement of the Property‟s Market Competitiveness
Major Large-scale Repair/Renovations (scheduled) After the Third Fiscal Period
URBAN STAGE Oimachi II

PRIME URBAN Iidabashi

 Large-scale repairs due to the aging(19 years)

 Install internet service in all units(unlimited internet access)(Main Content)⇒ Differentiation through improvement ofmerchantability

Entrance Renovations (refinishing)
Retiling of exterior wall (partiallyexcluded)⇒ Lengthening of tenant‟s residing period

Waterproofing the balcony(shortening downtime in occupancy)⇒ Maintain and Enhance CompetitivenessMusashino Green Hills
 Divided former owner‟s unit (Approx. 200
sq. meters) into 3 separate sections to
use as family units⇒ Renovate into a product suitable for themarket[Reference]
Examples of similar subdivision construction work
(management know-how)
URBAN STAGE Komagome(Approx. 200 sq. meters ⇒ Approx. 50 sq. meters × 4 separate units)

Drawing out the full potential of properties and maximizing the cash flow throughthe utilization of the rich management experience and various know-how of residential facilities

10

TOPICS: Modification in Asset Management Fee (Incentive Fee)

インセンティブ報酬にかかる規定の変更
Summary of Asset Management Fee

Management Total asset related fee
Fee I

Purpose of Incentive Fee
If there is an increase in FFO per unit as a result of the asset managementcompany‟s performance↓
By applying part of the increased amount as a benefit to the asset managementcompany, it conveys an incentive for improvement in performance

Management
Current cash flow* related fee
Fee II*Current profits of management fee II & III before deduction + depreciation

Contents and Reasons of Modification＜Modified Section＞

During the process of expanding the size of portfolio, the FFO per unit cansignificantly change through factors unrelated to the asset managementcompany‟s management efforts (additional issue of investment units,
acquisition of newly built properties with gradual increase in cash flow, etc.)↓

Management Incentive fee
Calculation Method:
Fee III
Increased amount of FFO per investment unit
× Number of issued investment units × 30%⇒ Details of
For the period when the total asset for the previous
Modification fiscal period end is less than ¥300 billion, the(special case) management fee III for the current period will not be accrued

Acquisition
Fee

Providing the incentive fee through the changes mentioned above is notalways in accordance with the fundamental purpose of the fee (incentive for
improvement in performance).
↓【Modification】
The incentive fee will not be accrued until the portfolio expands and thechanges mentioned above are determined that they are not against thefundamental purpose of the fee.
(Based on “Total asset of ¥300 billion”, a portfolio with an adequate level ofstability)

Asset acquisition fee↓
Expectations towards a more reasonable incentive and certain amount ofcommitment to the expansion of the portfolio.

(Note) The calculation method stated above is a general outline. For further details, please referto the Securities Report, etc.

11Overview of the Financial Results

12Income Statement

Second Fiscal Period

Third Fiscal Period

From June 1, 2007 From December 1, 2007
To November 30, 2007
To May 31, 2008
Amount(￥000)

Ratio(%)

Amount(￥000)

Ratio(%)

Real Estate Rental Business Revenues

2,484,628

100.0

3,261,814

100.0 *1

Rental Business Revenues

2,372,329

95.5

2,963,252

90.8

Other Rental Business Revenues

112,298

4.5

298,562

9.2

Real Estate Rental Business Expenses

896,96436.1

1,267,232

38.9

Real Estate Rental Business Expenses

446,05918.0

623,543

19.1 *2

Tax and Public Dues

53,2992.1

68,554

2.1 *3

Depreciation and Amortization

397,604

16.0

575,13417.6

1,587,663

63.9

1,994,582

61.1

Asset Management Fees

182,8517.4

224,231

6.9*3 [Tax and Public Dues]

Other Operating Expenses

140,999

5.7

146,873

4.5

1,263,812

50.9

1,623,477

49.8

Non-Operating Revenues

6,265

0.3

21,8430.7

Non-Operating Expenses

315,335

12.7

470,85414.4

During the Third Fiscal Period, 74 properties (out of 131 properties) havereported fixed asset taxes and urban planning taxes in the year
2007/2008 as expenses. Fixed asset taxes and urban planning taxes
adjusted with the seller have been included in the acquisition price at thetime of acquisition (¥24,398,000).

Current Profits

954,74338.4

1,174,466

36.0

Net Income Before Tax

954,74338.4

1,174,466

36.0

999

0.0

997

0.0

953,74338.4

1,173,469

36.0

29

0.0

32

0.0

953,77338.4

1,173,501

36.0

Real Estate Rental Business Profits and Losses

Operating Income

Corporate Income Tax, etc.
Net Income
Retained Earnings Brought Forward
Retained Earnings at the end of the Fiscal Period*1 [Real Estate Rental Business Revenues]
As of the end of the Third Fiscal Period, the portfolio consists of 131
properties/¥110.3 billion (total acquisition price). The occupancy rate forthe portfolio at the end of the Third Fiscal Period was 93.9%.

*2 [Repair Expenses]
Repair expenses reported as expenses in the Third Fiscal Period is¥78,389,000. In combination with ¥98,325,000 of capital expenditures, a
total of ¥176,714,000 in construction was carried out.

(Ref.) Changes in Number of Property during the Third Fiscal Period
Dec. 1,
2007(Start of FP)
No. of Properties
Changes97

Dec. 31,
2007

105
+8

Jan. 31,2008

105

Feb. 29,
2008

Mar. 31,2008

Apr. 30,
2008

May 31,
2008(End of FP)

117

125

130

131

+12

+8

+5

+1

13

Balance Sheet
AssetsLiabilities and Net Assets

Items

Current assets

Second Fiscal Period

Third Fiscal Period

Second Fiscal Period

Third Fiscal Period

as of Nov. 30, 2007

as of May 31, 2008

as of Nov. 30, 2007

as of May 31, 2008

Amount(￥000)

Amount(￥000)

Amount(￥000)

Amount(￥000)

Ratio
(%)

Ratio
(%)

3,974,905

4.9

5,202,778

4.4

Cash and cash equivalents

2,062,189

2.5

3,466,086

2.9

Trade accounts payable

Cash and cash equivalet in trust

1,820,953

2.3

1,603,667

1.4

Short-term loans

Other current assets

Current Liabilities

Ratio
(%)

Ratio
(%)

5,098,162

6.3

19,446,731

109,7590.1

131,343

16.4

4,360,000

5.4

18,504,000

157,649

0.2

177,109

0.1

653

0.0

654

0.0

0.1
15.6 *2

91,7620.1

133,024

0.1

Other accounts payable

76,915,836

95.1

113,544,689

95.6

Taxes payable

Tangible fixed assets

76,902,158

95.1

113,530,072

95.6 *1

Acrued expenses

153,568

0.2

208,707

0.2

Real estate

18,435,659

22.8

53,026,572

44.7

Rent received in advance314,8830.4

420,126

0.4

Building

7,332,739

9.1

25,077,509

21.1

1,647

0.0

4,789

0.0

Land

11,102,920

13.7

27,949,063

23.5

33,583,135

41.5

44,357,369

37.4

Real estate in trust

Long-term loans

32,740,000

40.5

43,220,000

36.4 *2

Security deposits

153,0320.2

395,271

Fixed Assets

58,401,685

72.2

60,488,896

50.9

Building in trust

20,384,968

25.2

21,017,908

17.7

Land in trust

38,016,717

47.0

39,470,987

33.2

64,8120.1

14,6020.0

Construction in progress
Intangible fixed assets
Other intangible fixed assets
Investment and other assets
Deposits received
Long-term repaid expenses
Total Assets

1,635

0.0

1,496

0.0

1,635

0.0

1,496

0.0

12,043
10,421

114,886
25,41427,94922,051
39,4700.0

10,632

Security deposits in trust
Total Liabilities
Unitholders Equity

54,943,366

46.3

0.0

53,769,864

45.3

0.0

Retained earnings

953,773

1.2

1,173,501

1.0

42,209,444

52.2

54,943,366

46.3

80,890,742

100.0

118,747,467

100.0

2,487

0.0
100.0

Total Liabilities and Net Assets

113,515
25,077
27,94921,01739,470

0.6
53.7

51.0

118,747,467

(575)
(241)
－
(333)
－

742,098
63,804,100

52.2

0.0

1,370
337
－
1,033
－

0.9
47.8

41,255,671

100.0(Depreciation Book value
for current FP) at end of FP

690,10238,681,297
42,209,444

1,622(unit: millions of yen)

0.3

Unitholders capital

80,890,742

Acquisition Accumulated
Price depreciation
Building
Land
Building in trust
Land in trust

13,120

Fixed Liabilities

Total New Assets*1 Tangible fixed assets

Real Estate

0.0

Deposits payable*2 Loans
61,724

Balance of interest-bearing debts (millions of yen)short-term + long-term loans
Total asset interest-bearing debt ratio

total assets

Long-term interest-bearing debt ratio

shot-term + long-term loans

52.0%

long-term loans

70.0%

14

Forecasts for the Fourth Fiscal Period

Fourth Fiscal Period Forecasts

Assumptions(June 1, 2008 – November 30, 2008)
Rental Business Revenues¥3,806 million

Rental Business Expenses¥1,466 million

Asset Management Fees

¥283 million

Other Operating Expenses¥173 million[Assets Under Management]
The calculation is based on 134 properties, adding 2
properties (scheduled to be acquired by November 30,2008) to the 132 properties held as of July 17, 2008.

[Depreciation]¥700 million is expected.

Operating Income¥1,884 million

Non-Operating Profit/Loss¥535 million

Current Profits¥1,348 million

Net Income¥1,347 million[Loans]Total Investment Units at
end of Fiscal Period

96,765 units

Cash Distribution per Unit

¥13,920

The Fund has a total of ¥62,644 million in loans as of July17, 2008. Assumes that loans as of November 30, 2008
(end of Fourth Fiscal Period) will be a total of ¥67,492
million, with loans for the acquisition of new properties
scheduled.

[Investment Units]
Assumes that the total number of investment units issued(96,765 units) will remain the same until the end of the
Fourth Fiscal Period.

15

Fund Management Results

16

Results of Investment (1) Agreements Concluded in the Third Fiscal Period

List of the Properties Acquired in the Third Fiscal Period

Brand

PROUD
FLAT

PRIME
URBAN

URBAN
STAGE

Property Name

Location

Leasable Units Acquisition Price(Units)(millions of yen)

PROUD FLAT Kamioooka

Yokohama-shi, Kanagawa

4,872.17

200

2,770

PROUD FLAT Kawaramachi (tentative name)
Sub Total

Sendai-shi, Miyagi

1,967.5464

724

6,839.71

264

3,494

PRIME URBAN Kawaguchi

Kawaguchi-shi, Saitama

2,477.11

98

2,170

PRIME URBAN Nagamachi Icchome

Sendai-shi, Miyagi

3,411.24

60

1,110

PRIME URBAN Yaotome Chuo

Sendai-shi, Miyagi

1,380.2143428

PRIME URBAN Chitose Funabashi (tentative name)Setagaya-ku, Tokyo

1,027.4438885

PRIME URBAN Esaka III (tentative name)
Sub Total

Suita-shi, Osaka

2,151.67

79

1,535

10,447.67

318

6,128

URBAN STAGE Shinkawa

Chuo-ku, Tokyo

3,600.61

46

2,250

URBAN STAGE Hongo Ikizaka

Bunkyo-ku, Tokyo

662.5827647

URBAN STAGE Shinjuku Ochiai

Shinjuku-ku, Tokyo

1,053.39

28

635

URBAN STAGE Kamikitazawa

Setagaya-ku, Tokyo

1,384.45

29

738

URBAN STAGE Kawasaki

Kawasaki-shi, Kanagawa

1,706.46

80

1,150

8,407.49

210

5,420

Koganei-shi, Tokyo

5,999.80

98

2,390

Koganei-shi, Tokyo

Sub Total
Koganei Habitation
Others

Leasable Space(㎡)

Musashino Green Hills

2,970.50

78

1,590

Sub Total

8,970.30

176

3,980

Total

34,665.17

968

19,02217

Results of Investment (2) Acquisitions from Nomura Real Estate Development
PROUD FLAT Kamioooka

PROUD FLAT Kawaramachi(tentative name)Main Railway Access:9 minute walk to Kamioooka Station on the Keikyu MainLine and Yokohama Municipal Subway Blue Line

Main Railway Access:6 minute walk to Kawaramachi Station on the Sendai
Municipal Subway Namboku Line

Leasable Units:

200

Leasable Units:

64

Acquisition Price:¥2,770 million

Scheduled Acquisition Price: ¥724 million

Acquisition Date:

March 19, 2008 (3rd Fiscal Period)

Scheduled Acquisition Date: December 19, 2008 (5th Fiscal Period)

Acquisition Route:

Nomura Real Estate Development Co., Ltd., etc.

Acquisition Route:

Rent Level

AccessCommuting TimeIn ¥70,000s for 1K units

Keikyu Main Line and Yokohama Municipal Subway Blue Line

Approximately 20 minutes to the Yokohama area
Approximately 35 minutes to the Shinagawa area

Rent Level

AccessCommuting Time

Nomura Real Estate Development Co., Ltd.

In ¥60,000s for 1K units
In ¥80,000s for 1LDK units

Sendai Municipal Subway Namboku Line

Approximately 10 minutes to the Sendai area
Approximately 15 minutes to the Kotodai Koen area

18

Results of Investment (3) Acquisitions from External Providers
PRIME URBAN Nagamachi Icchome

PRIME URBAN Yaotome Chuo

Main Railway Access:3 minute walk to Nagamachi Icchome Station on the
Sendai Municipal Namboku Line

Main Railway Access:4 minute walk to Yaotome Station on the Sendai
Municipal Subway Namboku Line

Leasable Units:

60

Leasable Units:

43

Acquisition Price:¥1,110 million

Acquisition Price:¥428 million

Acquisition Date:

February 1, 2008 (3rd Fiscal Period)

Acquisition Date:

February 1, 2008 (3rd Fiscal Period)

Acquisition Route:

New Provider

Acquisition Route:

New Provider

Rent Level

In ¥100,000s for 2LDK units
In ¥120,000s for 3LDK units

Rent Level

In ¥60,000s for 1K units

AccessCommuting Time

Sendai Municipal Subway Namboku Line

Approximately 10 minutes to the Sendai area
Approximately 15 minutes to the Kotodai Koen area

AccessCommuting Time

Sendai Municipal Subway Namboku Line

Approximately 15 minutes to the Kotodai Koen area
Approximately 20 minutes to the Sendai area

19

Results of Investment (3) Acquisitions from External Providers
PRIME URBAN Kawaguchi

PRIME URBAN Chitose Funabashi(tentative name)Main Railway Access:3 minute walk to Kawaguchi Station on the JR Keihin
Tohoku Line

Main Railway Access:7 minute walk to Chitose Funabashi Station on the
Odakyu Odawara Line

Leasable Units:

98

Leasable Units:

38

Acquisition Price:¥2,170 million

Scheduled Acquisition Price: ¥885 million

Acquisition Date:

April 1, 2008 (3rd Fiscal Period)

Scheduled Acquisition Date: February 28, 2009 (5th Fiscal Period)

Acquisition Route:

Existing Provider

Acquisition Route:

New Provider

Rent Level

In ¥70,000s for 1K units

Rent Level

In ¥110,000s for 1K units

Access

JR Keihin Tohoku Line

Access

Odakyu Odawara Line

Commuting Time

Approximately 30 minutes to Tokyo/Shinjuku areas
Approximately 25 minutes to the Ikebukuro area

Commuting Time

Approximately 25 minutes to the Shinjuku area
Approximately 40 minutes to Otemachi/Akasaka areas

20

Results of Investment (3) Acquisitions from External Providers
PRIME URBAN Esaka III(tentative name)Main Railway Access:3 minute walk to Esaka Station on the Osaka Municipal
Subway Midosuji Line and Kita Osaka Kyuko Dentetsu

Leasable Units:

79

Scheduled Acquisition Price: ¥1,535 million
Scheduled Acquisition Date: December 4, 2008 (5th Fiscal Period)
Acquisition Route:

New Provider

Rent Level

In ¥90,000s for 1K units

AccessCommuting Time

Osaka Municipal Subway Midosuji Line

Approximately 10 minutes to the Shin Osaka area
Approximately 20 minutes to Umeda/Hommachi area

URBAN STAGE Shinkawa

Main Railway Access:7 minute walk to Kayabacho Station on the Tokyo Metro
Tozai Line
7 minute walk to Hacchobori Station on the Tokyo Metro
Hibiya Line

Leasable Units:

46

Acquisition Price:¥2,250 million

Acquisition Date:

December 14, 2007 (3rd Fiscal Period)

Acquisition Route:

Existing Provider

Rent Level

In ¥180,000s for 2LDK units

AccessCommuting TimeTokyo Metro Tozai and Hibiya Lines

Approximately 10 minutes to the Otemachi area
Approximately 15 minutes to the Hibiya area

21

Results of Investment (3) Acquisitions from External Providers
URBAN STAGE Hongo Ikizaka

URBAN STAGE Shinjuku Ochiai

Main Railway Access:6 minute walk to Hongo Sanchome Station on the Tokyo
Metro Marunouchi Line
8 minute walk to Suidobashi Station on the JR Chuo andSobu Lines

Main Railway Access:10 minute walk to Ochiai Station on the Tokyo Metro
Tozai Line
9 minute walk to Higashi Nakano Station on the JR
Chuo and Sobu Lines

Leasable Units:

27

Leasable Units:

28

Acquisition Price:¥647 million

Acquisition Price:¥635 million

Acquisition Date:

December 12, 2007 (3rd Fiscal Period)

Acquisition Date:

December 12, 2007 (3rd Fiscal Period)

Acquisition Route:

Existing Provider

Acquisition Route:

Existing Provider

Rent Level

In ¥90,000s for 1K units
In ¥130,000s for 2DK units

Rent Level

AccessCommuting TimeIn ¥120,000s for 1K units

Tokyo Metro Marunouchi Line, JR Chuo and Sobu Lines, Toei
Subway Mita and Oedo Lines
Approximately 15 minutes to the Otemachi area
Approximately 15 minutes to the Tokyo area

AccessCommuting TimeTokyo Metro Tozai Line, JR Chuo and Sobu Lines, Toei
Subway Oedo Line
Approximately 15 minutes to the Shinjuku area
Approximately 30 minutes to the Otemachi area

22

Results of Investment (3) Acquisitions from External Providers
URBAN STAGE Kamikitazawa

Main Railway Access:9 minute walk to Kamikitazawa Station on the Keio Line
8 minute walk to Hachimanyama Station on the KeioLine

Leasable Units:

29

Acquisition Price:¥738 million

Acquisition Date:

December 12, 2007 (3rd Fiscal Period)

Acquisition Route:

Rent Level

Existing Provider

In ¥140,000s for 2LDK units

URBAN STAGE Kawasaki

Main Railway Access:10 minute walk to Kawasaki Station on the JR TokdaidoLine, Keihin Tohoku Line, etc.
7 minute walk to Keikyu Kawasaki Station on the Keikyu
Main Line

Leasable Units:

80

Acquisition Price:¥1,150 million

Acquisition Date:

February 26, 2008 (3rd Fiscal Period)

Acquisition Route:

Existing Provider

Rent Level

AccessKeio Line (extends on to Toei Subway Shinjuku Line)

AccessCommuting Time

Approximately 30 minutes to Shinjuku/Shibuya areas

Commuting TimeIn ¥70,000s for 1K units

JR Tokaido Line and Keihin Tohoku Line

Approximately 20 minutes to Shinagawa/Yokohama areas
Approximately 30 minutes to the Tokyo area

23

Results of Investment (3) Acquisitions from External Providers
Koganei Habitation

Musashino Green Hills

Main Railway Access:16 minute walk to Musashi Koganei Station on the JR
Chuo Line
17 minute walk to Higashi Koganei Station on the JR
Chuo Line

Main Railway Access:13 minute walk to Higashi Koganei Station on the JR
Chuo Line
18 minute walk to Musashi Sakai Station on the JR
Chuo Line

Leasable Units:

98

Leasable Units:

78 (Bldg. A: 40, Bldg. B: 38)

Acquisition Price:¥2,390 million

Acquisition Price:¥1,590 million

Acquisition Date:

December 12, 2007 (3rd Fiscal Period)

Acquisition Date:

December 14, 2007 (3rd Fiscal Period)

Acquisition Route:

Existing Provider

Acquisition Route:

Existing Provider

Rent Level

In ¥110,000s for 3DK units

Rent Level

In ¥60,000s for 1R units
In ¥130,000s for 2LDK units

AccessCommuting Time

JR Chuo Line

Approximately 40 minutes to the Shinjuku area

AccessCommuting Time

JR Chuo Line

Approximately 35 minutes to the Shinjuku area24

Results of Investment (4) Acquisitions During the Third Fiscal Period

List of the Properties Acquired in the Third Fiscal Period(millions of yen)
PROUD FLAT
Property NamePROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Shinotsuka

PRIME URBAN
Price

Property Name

800 PRIME URBAN Meguro Ohashi Hills
1,010 PRIME URBAN Hakusan
695 PRIME URBAN Denenchofu Minami

PROUD FLAT Monzen Nakacho II
PROUD FLAT Yokohama

650 PRIME URBAN Nakano Kamitakada
2,340 PRIME URBAN Kawaguchi

PROUD FLAT Kamioooka

2,770 PRIME URBAN Kita Juichi Jo

Property Name

3,580 URBAN STAGE Shinkawa

Price

2,250 Koganei Habitation
647 Musashino Green Hills

900 URBAN STAGE Shinjuku Ochiai

635 Benefis Kashii Verbena

640 URBAN STAGE Kamikitazawa
2,170 URBAN STAGE Kawasaki

738 Benefis Hakata Higashi Grand Sweet
1,150 Benefis Chihaya Grand Sweet

PRIME URBAN Miyanosawa

576 URBAN STAGE Minami Gyotoku V

293

PRIME URBAN Odori Higashi

424 URBAN STAGE Gyotoku

948

PRIME URBAN Chiji Kokan

337

PRIME URBAN Maruyama

283

PRIME URBAN Kita Nijuyo Jo

503

PRIME URBAN Yaotome Chuo
PRIME URBAN Kanayama
15 Properties

Property Name

893 URBAN STAGE Hongo Ikizaka

561

PRIME URBAN Nagamachi Icchome

8,265

Price

Others600 URBAN STAGE Gyotoku Ekimae

PRIME URBAN Sapporo Idaimae

6 Properties

URBAN STAGE

Price
2,390
1,590
396
693
545

731
1,110
428
632
13,8098 Properties

7,222

5 Properties

5,614

・34 properties/¥34,910 million has been additionally handed over in the Third Fiscal Period
・Portfolio at the end of the Third Fiscal Period: 131 properties/¥110,330 million

25

Portfolio Map (131 Properties in the Portfolio at the end of the 3rd FP)
Tokyo Area
Omiya

PROUD FLAT Yoyogi Uehara

PRIME URBAN Urayasu

PROUD FLAT Hatsudai

PRIME URBAN Gyotoku I

Tokyo Area

PROUD FLAT Shibuya Sakuragaoka

PRIME URBAN Gyotoku II(Tokyo, Kanagawa, Chiba, Saitama)

PROUD FLAT Gakugei Daigaku

PRIME URBAN Gyotoku Ekimae

PROUD FLAT Meguro Gyoninzaka

PRIME URBAN Nishi Funabashi

PROUD FLAT Sumida Riverside

PRIME URBAN Kawaguchi

PROUD FLAT Kagurazaka

URBAN STAGE Azabu Juban

PROUD FLAT Waseda

URBAN STAGE Hatagaya

PROUD FLAT Shinjuku Kawadacho

URBAN STAGE Toritsu Daigaku

PROUD FLAT Sangen Jaya

URBAN STAGE Kachidoki

PROUD FLAT Kamata

URBAN STAGE Shinkawa

PROUD FLAT Shinotsuka

URBAN STAGE Hongo Ikizaka

PROUD FLAT Kiyosumi Shirakawa

URBAN STAGE Naka Ochiai

PROUD FLAT Monzen Nakacho II

URBAN STAGE Ochiai

PROUD FLAT Yokohama

URBAN STAGE Shinjuku Ochiai

PROUD FLAT Kamioooka

URBAN STAGE Roka Koen

PRIME URBAN Akasaka

URBAN STAGE Kamiuma

PRIME URBAN Tamachi

URBAN STAGE Sangen Jaya

PRIME URBAN Ebisu Minami
PRIME URBAN Yoyogi

URBAN STAGE Chitose Karasuyama

PRIME URBAN Bancho

URBAN STAGE Komazawa

PRIME URBAN Chiyoda Fujimi

URBAN STAGE Karasuyama

Minami Urawa

Tobu
IsesakiLine
Adachi-ku

Kita-ku
Itabashi-ku

URBAN STAGE Kamikitazawa

PRIME URBAN Ebisu

URBAN STAGE Oimachi

PRIME URBAN Naka Meguro

URBAN STAGE Oimachi II

PRIME URBAN Gakugei Daigaku

URBAN STAGE Yukigaya

PRIME URBAN Senzoku

URBAN STAGE Ikegami

PRIME URBAN Meguro Riverside

URBAN STAGE Nakano

PRIME URBAN Meguro Ohashi Hills

URBAN STAGE Takaido

PRIME URBAN Hakusan

URBAN STAGE Komagome

PRIME URBAN Nishi Shinjuku I

URBAN STAGE Mukojima

PRIME URBAN Nishi Shinjuku II

URBAN STAGE Ekoda

PRIME URBAN Shinjuku Naitomachi

URBAN STAGE Takinokawa

PRIME URBAN Nishi Waseda

URBAN STAGE Asakusa

PRIME URBAN Sangen Jaya

URBAN STAGE Machiya

PRIME URBAN Minami Karasuyama

URBAN STAGE Koganei

PRIME URBAN Karasuyama Galleria

URBAN STAGE Hino

PRIME URBAN Karasuyama Court

URBAN STAGE Musashi Kosugi comodo

PRIME URBAN Shinagawa Nishi

URBAN STAGE Kawasaki

PRIME URBAN Osaki

URBAN STAGE Tsurumi Teraya

PRIME URBAN Omori

URBAN STAGE Tennocho

PRIME URBAN Kita Senzoku

URBAN STAGE Urayasu

PRIME URBAN Denenchofu Minami

URBAN STAGE Minami Gyotoku I

PRIME URBAN Nakano Kamitakada

URBAN STAGE Minami Gyotoku II

PRIME URBAN Nishi Ogikubo

URBAN STAGE Minami Gyotoku III

PRIME URBAN Otsuka

URBAN STAGE Minami Gyotoku IV

PRIME URBAN Monzen Nakacho

URBAN STAGE Gyotoku Ekimae

PRIME URBAN Kameido

URBAN STAGE Minami Gyotoku V

PRIME URBAN Sumiyoshi

URBAN STAGE Gyotoku

PRIME URBAN Kinshi Koen

URBAN STAGE Minami Urawa

PRIME URBAN Kinshicho

URBAN STAGE Yono Hommachi

PRIME URBAN Hirai

Cosmo Gracia Yotsuya Gaien Higashi

PRIME URBAN Kasai

Koganei Habitation

PRIME URBAN Kasai II

Musashino Green Hills

Chiba

Nerima-ku

Katsushika-ku
Arakawa-ku

Seibu Ikebukuro Line

Toshima-ku

Ikebukuro
JR Sobu Line

Taito-ku

Bunkyo-ku

Seibu Shinjuku LineURBAN STAGE Sangen Jaya II

PRIME URBAN Iidabashi

SaitamaTakadanobaba

Sumida-ku
Ueno

Tachikawa

Kichijoji

JR Chuo Line

Nishi Funabashi

Shinjuku-ku
Nakano-ku
Suginami-ku

Edogawa-ku

Shinjuku
Tokyo

Tokyo Metro Tozai Line

Chiyoda-ku

Keio Line
Shibuya-ku

Chuo-ku
Minato-ku

Koto-ku

Urayasu

Shibuya
Odakyu Line

Setagaya-ku

Tokyu
Denentoshi
Line

Tokyu
ToyokoLine

ShinagawaMeguro-ku

Shinagawa-ku

Tokyu
Main
Line

Kanagawa

Ota-kuJR
KeihinTohokuLine

Yokohama
JR Lines
Other Lines

26

Portfolio Map (131 Properties in the Portfolio at the end of the 3rd FP)
SapporoPRIME URBAN Yamahana
PRIME URBAN Kita Juyo Jo
PRIME URBAN Odori Koen I

Osaka
Osaka
International
AirportOther Areas(includes 3 major metropolitan areas (excluding Tokyo)
and other government designated cities)

HankyuSenri
LineHankyuTakarazuka
Line

PRIME URBAN Odori Koen II

JR
Kyoto
Line

PRIME URBAN Kita Juichi Jo

JR Lines
Other Lines

Esaka

PRIME URBAN Miyanosawa
PRIME URBAN Odori Higashi
PRIME URBAN Chiji Kokan
PRIME URBAN Maruyama

JR
Fukuchiyama
Line

SapporoTokaidoShinkansen

Shin Osaka

Sakae Machi

Asabu

JR Sassho Line

PRIME URBAN Kita Nijuyo Jo
PRIME URBAN Sapporo Idaimae

Miyanosawa Kotoni
Osaka
Kanjo LineSendai

Kita
NijuyoJo

Kotoni

JR Hakodate
Main Line

SapporoOsaka
Sapporo

Umeda

PROUD FLAT Itsutsubashi

Odori
Maruyama
Koen

PRIME URBAN Nagamachi Icchome
PRIME URBAN Yaotome Chuo

Sapporo Municipal
Subway Toho Line

Sapporo City
Street Car Line

Namba

NagoyaSapporo Municipal
Subway Tozai Line

SapporoMunicipal Subway
Namboku Line

Fukuzumi

PRIME URBAN Aoi
PRIME URBAN Kanayama

NagoyaFukuoka

Kashii

Osaka

Nagoya Municipal
Subway Meijo Line

Osaka
Kanjo Line

PRIME URBAN Esaka I

Sanyo
Shinkansen

PRIME URBAN Esaka II

NagoyaChikusa

Benefis Hakata Grand Sweet
Benefis Yakuin Minami

MeinohamaBenefis Chihaya Grand Sweet

YakuinJR Hakata
Minami Line

Fukuoka Municipal
Subway Kuko Line

Hashimoto

Nishitetsu
Tenjin-Omuta
Line

Fukuoka
Municipal Suway
Nanakuma Line

OhashiJR
Kagoshima
Main Line

Kanayama
TokaidoShinkansen

JR Todaido
Main Line
NagoyaMunicipal
SubwayMeijo Line

NagoyaMunicipal
SubwaySakura-doriLine

Kita Sendai
Sendai
Municipal
SubwayNamboku Line

Tsurumai Line

Benefis Kashii Verbena
Benefis Hakata Higashi Grand Sweet

Motoyama

NagoyaTsurumaiMunicipal
Subway

JR Sasaguri Line

Fukuoka
Hakata Airport

Izumi Chuo

JR Senzan Line

Sakae

FukuokaTenjinSendai

JR Chuo
Main Line

Fushimi
Fukuoka
Municipal Subway
Hakozaki Line

Meitetsu
Seto Line

Ozone

JR Kashii
Line

YagotoMeitetsu
NagoyaMain Line

Nagamachi
Minami

JR Tohoku
Main Line
TohokuShinkansen

Sendai

Nagamachi

Tomizawa
Aratama-bashi

27

Portfolio Status (131 Properties at the end of 3rd Fiscal Period)

Diversification Within Assets

Building Age
Top 5 Properties

Over 10 years

Under 1 year

¥13.3 billion

Considering the combination ofvarious building age to avoid thebias of large-scale repair
expenses in the future

Improvement of the portfolio
stability through promotion ofdiversification
Other 121 Properties

Top 10 Properties¥85.9 billion¥24.4 billion

Investment Area

3-5 years

Other Areas

Investment in properties
targeting single/DINKS/young
family households for theforeseeable future(Kanagawa, Chiba,
Saitama)Tokyo

Over 70
sq. meters

Vicinityof Tokyo

Other Areas
30% or lessTokyo (23 wards)

Over 10 min.

Retail & Office

50-70
sq. meters30-50 sq. metersUnder
30 sq. meters

Over 100 Units

Under 30 Units(excluding the 23 wards)

Nearest Station on Foot1-3 years

Floor Area per Unit
Other Areas

Vicinity of Tokyo
70% or more

5-10 years

Units per Property
Within 5 min.

Investment in properties withstrong possibility of lease-up
within a short period of time

Selection focusing onaccessibility to the nearest
railway station(Generally aiming 100 units for a
newly built property*)* excludes sub-lease properties, etc.
5-10 min.

50-100 Units

30-50 Units(Note) Of the graphs above, “Floor area per unit” is based on units, the others are based on acquisition price.

28

Results of Management (1) Portfolio Occupancy Rate

Occupancy of Operating/Newly Built Properties

Occupancy Rate

Nov. 31,2007(2nd FP end)

Operating
Properties

Dec. 31,
2007

Jan. 31,2008

Newly Built
Properties

Feb. 29,
2008

Mar. 31,
2008

Operating
Properties

Newly Built Leasable Space
Properties

Apr. 30,
2008

May 31,2008(3rd FP end)

Operating Properties(Properties owned before 3rd FP and 1 year or older properties at time of acquisition)

 Accurately grasping the tenant turnover tendency concentrated at the
year-end Develop a leasing effort that is both well-planned and flexible

Portfolio Occupancy Rate

Occupancy Rate

Nov. 31,2007(2nd FP end)

～Jan.

Feb.

Total Portfolio

Feb. 29,
2008

Mar. 31,2008

Apr. 30,
2008

Leasable SpaceMay 31,2008(3rd FP end)

Stable management of operating properties(Maintaining high occupancy rates)

Temporary decline in occupancy rate due to acquisition of
newly built properties↓

Mar.～
Newly Build Properties (Properties built within a year at time of acquisition)
 Utilize effective publicity tools, strengthening the advertisement⇒ Enables an upward growth in lease-ups

Jan. 31,2008

Newly Built
Properties↓⇒ Maintain high occupancy rate through smooth turnovers

 Develop an active leasing effort, utilizing leasing agencies

Dec. 31,
2007

Operating
Properties

Raising occupancy rates of newly built properties
Maintaining high occupancy rates of operating properties(Smooth turnovers)↓

May

Third Fiscal Period end occupancy rate: 93.9%

29

Results of Management (2) Market Penetration of Property Brands

Utilizing Brand Pamphlets for Effective Leasing

Current Leasing Promotions (Lease-up of newly built properties, smooth turnovers of operating properties)“Increase Recognition of Property Brand” and “Upgrade Brand Image” for its effectiveness in the future30

Financial Performance

LTV Control Through Capital Increase

Interest-bearing Debt Portfolio

Details of Capital Increase

Improvement of Flexibility in Credit Loans

27,300 units (Public Offering “PO”)
1,365 units (Third-party Allotment)

 Number of Units Issued
 Proceeds¥12,514 million (Total)

 Payment Date

Feb. 13, 2008 (PO)Mar. 11, 2008 (Third-party Allotment)

 Total Number of Investment
Units After New Issue

 Broadening of Credit Loan Lenders(New Lender: Mitsubishi UFJ Trust and Banking Corporation)
 Raising the Credit Limit (Change: ¥15 billion → ¥20 billion)

Selecting Optimum Means of Funding Acquisition： Fully utilizing flexibility enhanced „Credit Loan‟ Refinancing： Improvement of financial strength throughthe long-term/fixed rate Term Loan
(Approx. ¥10.5 billion*:¥5.5 billion 5 years, ¥4.9 billion 3 years)

96,765 units (After both issues)* Acquisition funding loans, borrowed along with refinancing loans, are included.

Promotion of Maturity Diversification

Changes in LTV before/after Capital Increase

Existing Loans

3rd FP Loans(millions of yen)

Without Capital Increase
Approx. 62.5%
Approx. 52.1%

Short-term Loan
(Credit Loan)

Long-term Loan
(3 Year Fixed Rate)

6th
FP

8th
FP

Long-term Loan
(5 Year Fixed Rate)

52.0%
45.9%
Lowering of LTV
due to Capital Increase
2nd FP end
Nov. 30, 2007

Approx. 39.7%

Before PO After PO
Feb. 2008 Feb. 2008

3rd FP end
May 31, 2008

4th
FP

5th
FP

7th
FP

9th
FP

10th
FP

11th
FP

12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

(Note) The numbers before and after PO are un-audited. The numbers for “Without Capital Increase” is based on
the assumption that all property acquisition will be acquired through loans after the PO.

31

Status of Financing

Interest-Bearing Debt

Status of Lenders
Balance of Loans

70.0％

Long-term Interest Bearing Debt Ratio(Millions of yen)

Bank of Tokyo-Mitsubishi UFJ

12,33912,339Sumitomo Mitsui Banking

12,33912,33910,44610,446

Mitsubishi UFJ Trust and Banking

62.0％

Loan Interest Rate Fixed Ratio (Note)(Note) Includes floating interest rate loans which have been fixed through interest rate swaps.

Average Remaining Duration for Long-term Loans

3.6 years

Sumitomo Trust and Banking

5,460

5,460

Mizuho Corporate Bank

4,900

4,900

Development Bank of Japan

4,800

Nomura Trust and Banking

3,000

Taiyo Life Insurance

3,000

Rating Agency
Japan Credit Rating Agency, Ltd.

Rating

3,000

1,100

Mitsui Sumitomo Insurance1,100

1,100

Chiba Bank1,000

1,000

Iyo Bank1,000

1,000

Dai-ichi Mutual Life Insurance 800

Long-term Senior Debt Rating: ＡＡ

Aozora Bank

440

0

Moody‟s Investors Service

3,000

Daido Life Insurance1,100

Credit Ratings

4,800

Long-term Loan (Term)
Short-term Loan (Term)

800

Short-term Loan (Credit)
440
2,000

4,000

6,000

8,000

10,00012,00014,000Issuer Rating: Ａ１
Types of Financial Institutions

Standard & Poor‟sLong-term Corporate Credit Rating: Ａ＋
Short-term Corporate Credit Rating: Ａ-１

City Banks

Trust Banks

Regional
Banks

Insurance
Companies

Other

3

3

2

4

2

32

ＡＰＰＥＮＤＩＸ

33

Portfolio (as of the end of the 3rd Fiscal Period)

#
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

Name of Property
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT Meguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Ebisu Minami
PRIME URBAN Yoyogi
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku
PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Hakusan
PRIME URBAN Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda

Location

Percent of
Acquisition Price(Thousands of Yen) Total (%)

Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo

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
695,000
900,000
650,000
2,340,000
2,770,000
956,000
941,000
947,000
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
1,290,000
1,000,000
512,000
503,000

1.0
0.8
0.7
0.7
0.8
2.0
1.4
1.0
0.9
1.2
1.0
0.6
0.8
0.6
2.1
2.5
0.9
0.9
0.9
0.4
1.1
0.6
1.8
1.1
1.2
0.8
0.5
0.4
3.2
0.8
1.2
0.9
0.5
0.5

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 3rd FP) (%)
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
752.091,209.56
830.55
3,118.12
4,872.17
1,062.05
1,107.36
881.89439.56
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.772,955.74
1,069.82
1,459.86
1,162.55
578.18507.11

44
31
30
41
40
110
70
60
41
48
67
35
55
35
113
200
25
48
21
19
52
32
90
29
49
32
22
24
99
42
60
46
14
28

95.8
90.7
80.0
97.4
97.5
96.9
100.0
98.5
100.0
94.3
97.1
4.2
100.0
97.4
79.3
100.0
95.1
91.5
93.3
96.0
97.8
100.0
95.7
93.4
91.8
90.1
100.0
100.0
45.2
100.0
93.5
93.7
92.5
100.0

34

Portfolio (as of the end of the 3rd Fiscal Period)

#
35
36
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

Name of Property
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Shinagawa Nishi
PRIME URBAN Osaki
PRIME URBAN Omori
PRIME URBAN Kita Senzoku
PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano Kamitakada
PRIME URBAN Nishi Ogikubo
PRIME URBAN Otsuka
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai
PRIME URBAN Kasai II
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I
PRIME URBAN Gyotoku II
PRIME URBAN Gyotoku Ekimae
PRIME URBAN Nishi Funabashi
PRIME URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Hatagaya
URBAN STAGE Toritsu Daigaku
URBAN STAGE Kachidoki
URBAN STAGE Shinkawa
URBAN STAGE Hongo Ikizaka
URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai

Location

Percent of
Acquisition Price(Thousands of Yen) Total (%)

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
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo

835,000
840,000
645,000
413,000
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
840,000
635,000
741,000
476,000
772,000
2,170,000
991,000
452,000
524,000
2,290,000
2,250,000
647,000
655,000
324,000

0.8
0.8
0.6
0.4
0.6
1.5
0.7
0.5
0.8
0.6
0.4
0.7
2.0
0.6
0.5
1.1
0.6
0.6
0.6
0.9
0.8
0.6
0.7
0.4
0.7
2.0
0.9
0.4
0.5
2.1
2.0
0.6
0.6
0.3

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 3rd FP) (%)
874.15
1,049.73
835.05576.20961.252,106.16
1,190.70
834.901100.17818.75543.09944.993,127.94
1,117.34
813.52
1,886.50
991.62
1,095.91
905.81
1,437.84
1,264.84
1,151.36
1,244.00
778.191,237.80
2,477.11
1,222.13
650.60996.81
4,481.82
3,600.61
662.581,237.98
517.53

33
41
33
23
46
99
54
46
44
33
24
46
117
52
40
77
49
53
45
68
60
52
58
37
60
98
40
38
16
144
46
27
18
32

90.9
100.0
97.0
95.7
97.9
100.0
96.3
95.7
98.1
65.5
100.0
89.4
85.5
100.0
100.0
97.4
100.0
94.3
100.0
98.5
100.0
96.2
100.0
97.3
96.7
100.0
94.8
97.4
100.0
94.4
97.8
88.9
94.0
96.5

35

Portfolio (as of the end of the 3rd Fiscal Period)#

Name of Property

Location

Percent of
Acquisition Price(Thousands of Yen) Total (%)

69
70
71
72
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

URBAN STAGE Shinjuku Ochiai
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 Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE Mukojima
URBAN STAGE Ekoda
URBAN STAGE Takinokawa
URBAN STAGE Asakusa
URBAN STAGE Machiya
URBAN STAGE Koganei
URBAN STAGE Hino
URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Tennocho
URBAN STAGE Urayasu
URBAN STAGE Minami Gyotoku I
URBAN STAGE Minami Gyotoku II
URBAN STAGE Minami Gyotoku III
URBAN STAGE Minami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Minami Gyotoku V

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
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Sumida-ku, Tokyo
Nerima-ku, Tokyo
Kita-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-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

635,000
362,000
900,000
755,000
730,000
539,000
396,000
344,000
738,000
530,000
1,100,000
970,000
1,460,000
472,000
1,080,000
412,000
487,000
385,000
287,000
350,000
210,000
229,000
319,000
2,150,000
1,150,000
457,000
136,000
277,000
357,000
285,000
263,000
256,000
561,000
293,000

0.6
0.3
0.8
0.7
0.7
0.5
0.4
0.3
0.7
0.5
1.0
0.9
1.3
0.4
1.0
0.4
0.4
0.3
0.3
0.3
0.2
0.2
0.3
1.9
1.0
0.4
0.1
0.3
0.3
0.3
0.2
0.2
0.5
0.3

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 3rd FP) (%)
1053.39567.201,739.86
1,018.72
1,774.01
810.98572.41507.521384.45722.701,719.82
1,536.59
2,456.48
801.301,746.20
990.18
1,108.91
872.49554.39876.70455.19682.43994.683,690.37
1,706.46
952.06332.48437.94682.05611.61
543.84535.08927.33662.68

28
34
37
47
27
17
26
28
29
45
92
94
95
51
107
19
55
35
29
22
26
27
54
56
80
50
20
27
41
37
33
32
46
38

100.0
91.3
99.1
98.2
96.2
94.6
100.0
96.7
88.5
100.0
94.9
100.0
100.0
89.0
94.7
100.0
100.0
97.5
100.0
100.0
88.2
94.5
98.1
98.0
92.5
93.9
95.0
100.0
100.0
97.3
93.9
100.0
95.7
92.5

36

Portfolio (as of the end of the 3rd Fiscal Period)

#
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131

Name of Property

Location

URBAN STAGE Gyotoku
Ichikawa-shi, Chiba
URBAN STAGE Minami Urawa
Saitama-shi, Saitama
URBAN STAGE Yono Honmachi
Saitama-shi, Saitama
Cosmo Gracia Yotsuya Gaien Higashi
Shinjuku-ku, Tokyo
Koganei Habitation
Koganei-shi, Tokyo
Musashino Green Hills
Koganei-shi, Tokyo
Vicinity of Tokyo (Sub Total 108 Properties)
PROUD FLAT Itsutsubashi
Sendai-shi, Miyagi
PRIME URBAN Yamahana
Sapporo-shi, Hokkaido
PRIME URBAN Kita Juyo Jo
Sapporo-shi, Hokkaido
PRIME URBAN Odori Koen I
Sapporo-shi, Hokkaido
PRIME URBAN Odori Koen II
Sapporo-shi, Hokkaido
PRIME URBAN Kita Juichi Jo
Sapporo-shi, Hokkaido
PRIME URBAN Miyanosawa
Sapporo-shi, Hokkaido
PRIME URBAN Odori Higashi
Sapporo-shi, Hokkaido
PRIME URBAN Chiji Kokan
Sapporo-shi, Hokkaido
PRIME URBAN Maruyama
Sapporo-shi, Hokkaido
PRIME URBAN Kita Nijuyo Jo
Sapporo-shi, Hokkaido
PRIME URBAN Sapporo Idaimae
Sapporo-shi, Hokkaido
PRIME URBAN Nagamachi Icchome
Sendai-shi, Miyagi
PRIME URBAN Yaotome Chuo
Sendai-shi, Miyagi
PRIME URBAN Aoi
Nagoya-shi, Aichi
PRIME URBAN Kanayama
Nagoya-shi, Aichi
PRIME URBAN Esaka I
Suita-shi, Osaka
PRIME URBAN Esaka II
Suita-shi, Osaka
Benefis Hakata Grand Sweet
Fukuoka-shi, Fukuoka
Benefis Yakuin Minami
Fukuoka-shi, Fukuoka
Benefis Kashii Verbena
Fukuoka-shi, Fukuoka
Benefis Hakata Higashi Grand Sweet
Fukuoka-shi, Fukuoka
Benefis Chihaya Grand Sweet
Fukuoka-shi, Fukuoka
Other Areas (Sub Total 23 Properties)

Total

Percent of
Acquisition Price(Thousands of Yen) Total (%)
948,000
274,000
519,000
1,700,000
2,390,000
1,590,000
97,456,000
682,000
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
672,000
790,000
830,000
351,000
396,000
693,000
545,000
12,874,600

110,330,600

0.9
0.2
0.5
1.5
2.2
1.4
88.3
0.6
0.3
0.3
0.5
0.3
0.5
0.5
0.4
0.3
0.3
0.5
0.7
1.0
0.4
0.7
0.6
0.6
0.7
0.8
0.3
0.4
0.6
0.5
11.7

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 3rd FP) (%)
1766.47
694.05
1,372.74
1,759.11
599.802,970.50
141,115.47
1,861.56
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
1,189.12
1,392.00
2,176.23
897.84
1,222.34
1,854.13
1,740.70
37,352.98

77
32
70
51
98
78
5,391
60
33
36
53
36
60
54
36
42
27
36
58
60
43
46
58
48
57
67
34
39
65
48
1,096

100.0
93.9
94.3
89.5
89.5
83.5
93.7
93.8
96.4
96.8
100.0
100.0
93.3
86.3
88.9
80.8
70.4
80.6
97.8
100.0
100.0
100.0
100.0
95.8
95.7
93.1
97.2
100.0
98.4
95.9
94.6

100.0 178,468.45

6,487

93.9

37

Scheduled Acquisitions After the 3rd Fiscal Period
Scheduled Acquisitions Determined During the First-Third Fiscal Period
Name of Property
PROUD FLAT Shirogane Takanawa (tentative name)
PROUD FLAT Monzen Nakacho I (tentative name)PRIME URBAN Chitose Funabashi (tentative name)
Vicinity of Tokyo (Sub Total 3 Properties)
PROUD FLAT Kawaramachi (tentative name)PRIME URBAN Tsurumai (tentative name)PRIME URBAN Esaka III (tentative name)
Other Areas (Sub Total 3 Properties)

Location
Minato-ku, Tokyo
Koto-ku, Tokyo
Setagaya-ku, Tokyo
Sendai-shi, Miyagi
Nagoya-shi, Aichi
Suita-shi, Osaka

Total 6 Properties

Scheduled
Leasable
Acquisition PriceSpace (㎡)
(Thousands of Yen)
3,510,000
1,130,000
885,000
5,525,000
724,000
1,189,096
1,535,000
3,448,096

2,950.11
1,191.08
1,027.44
5,168.63
1,967.54
2,502.11
2,151.67
6,621.32

8,973,096

11,789.95

Leasable
Units(Units)Scheduled
Acquisition Date

106 September 5, 2008
55
August 5, 2008
38 February 28, 2009199
64 December 19, 2008
104
March 5, 200979 December 4, 2008
247

446

Scheduled Acquisitions Determined After the Third Fiscal Period (as of July 17, 2008)
Name of Property
PRIME URBAN Shinyurigaoka (tentative name)
Vicinity of Tokyo (Sub Total 1 Property)
URBAN STAGE Tsutsumidori Amamiya (Note)
Other Areas (Sub Total 1 Property)

Location
Kawasaki-shi, Kanagawa
Sendai-shi, Miyagi

Total 2 Properties

Scheduled
Leasable
Acquisition PriceSpace (㎡)
(Thousands of Yen)

Leasable
Units(Units)1,210,000
1,210,000
969,000
969,000

1,708.19
1,708.19
4,251.91
4,251.91

64
64
65
65

2,179,000

5,960.10

129(Scheduled)
Leasable
Acquisition PriceSpace (㎡)
(Thousands of Yen)

Leasable
Units(Units)Scheduled
Acquisition Date
March 18, 2009
July 1, 2008

(Note) Acquisition has been completed on July 1, 2008.

Total of All the Mentioned Properties

Total Acquired Properties/Scheduled Acquisitions (139 Properties)

121,482,696

196,218.50

7,062

38

Interest-bearing Debts (at the end of the 3rd Fiscal Period)
Amount(Millions of Yen)

Type of Interest

Interest Rate

Date of Repayment

3 Financial Institutions

3,360

Floating Rate

1.13583%

Septermber 29, 2008

3 Financial Institutions

2,216

Floating Rate

1.12500%

December 26, 2008

3 Financial Institutions

1,144

Floating Rate

1.12583%

December 26, 2008

3 Financial Institutions

1,888

Floating Rate

1.12750%

December 26, 2008

3 Financial Institutions

3,800

Floating Rate

1.12750%

December 26, 2008

3 Financial Institutions

3,896

Floating Rate

1.12750%

December 26, 2008

3 Financial Institutions

1,448

Floating Rate

1.11833%

December 26, 2008

3 Financial Institutions

752

Floating Rate

1.11083%

December 26, 2008

3 Financial Institutions

18,504－－－

5 Financial Institutions

4,500

Floating Rate

1.16583%

August 27, 2009

6 Financial Institutions

5,000

Fixed Rate

1.46045%

February 27, 2010

1 Financial Institution

440

Floating Rate

1.14583%

February 27, 2010

4 Financial Institutions

4,980

1.24920%

February 26, 2011

1.84464%

September 30, 2011

1.79300%

February 27, 2012

LenderShort-term Loan

Short-term Loan
Sub Total(Note 1)

Fixed Rate
(Note 2)

3,500

Fixed Rate

7 Financial Institutions

11,000

Fixed Rate

2 Financial Institutions

2,200

Fixed Rate

1.81375%

August 27, 2012

3 Financial Institutions

5,500

Fixed Rate

1.83625%

May 23, 2013

1 Financial Institution

800

Fixed Rate

1.99875%

September 30, 2013

2 Financial Institutions

2,000

Fixed Rate

2.14360%

February 27, 2014

1 Financial Institution

2,000

Fixed Rate

2.13625%

February 27, 2014

6 Financial Institutions

Long-term Loan

(Note 3)(Note 1)

(Note 1)

Collateral

Unsecured
Unguaranteed－

Unsecured
Unguaranteed

1 Financial Institution

1,300

Fixed Rate

2.23500%

February 27, 2015

Long-term Loan
Sub Total

14 Financial Institutions

43,220

－

－

－

－

Total

14 Financial Institutions

61,724－－－－(Note 1) This loan has started the Interest Rate Swap transaction on Feburary 27, 2007.
(Note 2) This loan has started the Interest Rate Swap transaction on February 26, 2008.
(Note 3) This loan has started the Interest Rate Swap transaction on May 31, 2007.

39

Unitholders (at the end of the 3rd Fiscal Period)

Number of Unitholders and Investment Units
Other Domestic
Corporations(155 unitholders)

Financial Institutions(111 unitholders)Foreign Corporations(83 unitholders)Foreign
Corporations(8,678 units)

Individuals(7,406 unitholders)

Other Domestic Corporations(15,445 units)

Total Number of Unitholders：7,755

Individuals(17,328 units)

Financial Institutions(55,314 units)

Total Number of Investment Units：96,765

Top 10 Unitholders
1
2
3
4
5
6
7
8
9
10

Unitholders
Nomura Real Estate Development Co., Ltd.
Japan Trustee Services Bank, Ltd.
NikkoCiti Trust and Banking Corporation
The Master Trust Bank of Japan, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Trust & Custody Services Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
North Pacific Bank, Ltd.
Asahi Fire & Marine Insurance Co., Ltd.
The Bank of Ikeda, Ltd.
Total

Units
12,500
9,373
7,069
5,261
5,000
4,983
2,533
2,323
2,000
1,831
52,873

Ratio (Note)
12.92%
9.69%
7.31%
5.44%
5.17%
5.15%
2.62%
2.40%
2.07%
1.89%
54.64%(Note) Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units

40

Organization of the Asset Management Company

Shareholders Meeting

Corporate Data of NREAM
Auditors
Name

Board of Directors

Nomura Real Estate Asset Management Co., Ltd.
Executive Director

Date of Establishment
Compliance
Committee

Compliance & Risk
Management Group*

January 24, 2003

Capital¥300,000,000
OfficeManagement Division

ResidenceManagement Division
Shareholder

Investment
Committee

Investment
Committee

Nomura Real Estate Holdings, Inc. (100%)

Representative
Tatsuo Inoue, President & CEO
Acquisition
Group

Asset
Management
Group

Fund
Management
Group

Financial &Control GroupAcquisitionGroup■ Businessrelevant to due
diligence andacquisition ofproperties.
*Compliance & Risk Management Group■ Business relevant to the compliance, risk management,
and internal audits of the asset management company.

Asset
Management
Group

Fund
ManagementGroup■ Businessrelevant to theoperations,management,
and dispositionof real estate
undermanagement.

■ Businessrelevant to the
managementof the portfolio
of investment
assets anddisclosure (IR).

Financial &Control Group■ Businessrelevant to thefunding,accounting,taxation, andmanagementof capital forinvestment
assets.

Description of Business
Asset management business for investment
corporations (J-REITs)

Registration & Licenses■Registered for a financial instruments business:
Director of Kanto Local Finance Bureau No. 374■Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport No. 18■Licensed for real estate trading:Governor of Tokyo No. (2) 81679

NRF Management Division41This document has been prepared solely for the purpose of provision of information andshould not be construed as an offer, solicitation or commercial conduct of any natureassociated with any specific products. Investors wishing to purchase the investment unitsof Nomura Real Estate Residential Fund, Inc. should contact their own securities brokers
or dealers.
The forecast statements with respect to the future financial results contained in thisdocument should not be construed as a guarantee of the actual performance in the future.
Although the information contained in this document is intended to be complete andthorough, there is no assurance of precision and safety. Please note that the contents ofthis document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole ofthe information contained in this document without express prior written consent.