For Immediate Release

December 12, 2013
Nomura Real Estate Office Fund, Inc.
Yoshiyuki Ito, 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 October 31, 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 twentieth fiscal period (May 1, 2013 to
October 31, 2013).
1. Outline of Financial Results for the Fiscal Period Ending October 31, 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
October 31, 2013
April 30, 2013

Millions of

yen

(%)

12,37812,673

Millions of yen

3,635
4,026

Millions of yen(-2.3)(-0.2)

5,127
5,544

Net Income
per Unit

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

Operating Profits(%)(-9.7)(2.9)

Ordinary Income(%)

Millions of yen(%)(-7.5)
(1.1)

3,636
4,027

(-9.7)(2.9)

ROE(Return on
Equity)(Note 1)

ROA(Return on
Assets) (Note 2)

Ordinary Income
to Operating
Revenues Ratio

%

%

%

yen

10,413
13,195

1.8
2.1

0.9
1.0

29.4
31.8

(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.
As for October 31, 2013, Net Assets were time-adjusted due to the additional issuance of investment units.
(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.
As for October 31, 2013, the Total Assets were time-adjusted due to the additional issuance of investment units.

(2) Distributions
Cash
Distributions
per Unit

Total CashDistributions

Distributions in
Excess of Net
Income per
Unit

Distributions
in Excess of
Net Income

Millions of yen

yen

Millions of yen(Note1)

Period Ended
October 31, 2013
April 30, 2013

yen

10,00012,412

3,725
3,787

0
0

0
0

Distributions
to Net Asset
Ratio

PayoutRatio(Note2)

%

102.4
94.0

%

1.7
2.0

(Note 1) Payout ratio is calculated as follows since new investment units were issued through public offering and the mumber of investment units issued andoutstanding was changed during the 20th fiscal period (rounded off to the first decimal place):
Payout ratio = Total Cash Distributions (excluding distribution in excess of earnings) ÷ Net income ×100
(Note 2) Cash Distributions per Unit for the period ended October 31, 2013 is calculated by dividing the amount after adding the reversal of the provision ofreserve for reduction entry (¥89 million) to inappropriate retained earnings by the number of investment units issued and outstanding. Cash Distributions
per Unit for the period ended April 30, 2013 is calculated by dividing the amount after deducting the provision of reserve for reduction entry (¥239
million) to inappropriate retained earnings by the number of investment units issued and outstanding.

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

Capital Adequacy
Ratio

Net Assets

Millions of yen

Millions of yen

404,207393,914Net Assets per Unit%

215,405
189,581

yen

53.3
48.1

578,188621,329(4) Cash Flows
Cash Flows fromOperating
Activities
Period Ended
October 31, 2013
April 30, 2013

Cash Flows from
Investing Activities

Millions of yen

Cash Flows from
Financing Activities

Millions of yen

4,326
8,935

Cash and Cash
Equivalents
at End of Period

Millions of yen-11,891-1,609Millions of yen

7,294-7,36027,052
27,324

2. Forecasts of Financial Results for the Fiscal Period Ending April 30, 2014 (From November 1, 2013 to April
30, 2014)
Operating
Revenues
Period Ending
April 30, 2014

Millionsof yenOperating
Profits

Ordinary
IncomeNet Income(%)

Millionsof yen(%)

Millionsof yen(%)

Millionsof yen(%)

12,165 (-1.7)

4,959(-3.3)

3,567(-1.9)

3,566(-1.9)Cash
Distributions
per Unit

Distributions
in Excess of
Net Income
per Unityen

yen

10,0000(Reference) Forecast Net Income per Unit: JPY9,573

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 October 31, 2013
372,553
As of April 30, 2013
305,123b. The number of treasury investment units
As of October 31, 20130
As of April 30, 2013
0(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.
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 April 30, 2014
Item
Assumptions
Period・ Twenty-first fiscal period: November 1, 2013 through April 30, 2014
・ The Fund assumes that the investment portfolio consisting of 53 properties owned by
Investment
the Fund as of the end of the twentieth fiscal period will remain unchanged up to thePortfolio
end of the twenty-first fiscal period (April 30, 2014).
・ In practice, the investment portfolio is subject to potential change.
・ The forecast of operating revenues for the twenty-first fiscal period is based upon theoperating revenues from 53 properties owned by the Fund as of the end of thetwentieth fiscal period.
Operating・The forecasts of the level of the rent and vacancy rates are based on the trend of
Revenues
tenants, competing buildings in the neighborhood, and the recent real estate market
trend, etc.
・ The Fund assumes that there is no rent in arrears and nonpayment of the rent.
・ In general, the property taxes and urban planning taxes imposed on the properties in the
tax year (including the date) of transaction are distributed to the seller and the purchaser
on a daily pro-rata basis and settled at the time of acquisition, and such taxes are
deemed as the acquisition costs, not as expenses.
・ Property related taxes are calculated as rental expenses, estimated amount of ¥1,116
million.
・ Outsourcing expenses are estimated at ¥1,436 million.
・ As for the repair and maintenance, the Asset Management Company (Nomura Real
Estate Asset Management Co., Ltd.) estimates the required amounts for the respective
Operatingproperties for each of the fiscal periods based on the medium- and long-term repair
Expensesplans. 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 mightvary year by year, and (iii) certain types of repair expenses are not required every year.
・ Rental revenues after deducting the rental expenses (including depreciation costs) is
estimated at ¥6,030 million (excluding profits on sale of real estate, etc.). Depreciation
costs are estimated at ¥1,680 million.
・ The operating expenses other than the rental expenses (including asset management fees,
asset custody fees and general administration fees) are estimated at ¥1,175million.
Non-Operating ・ Interest payable is estimated at ¥1,225 million.
Expenses・ Loan-related expenses are estimated at ¥100million.
・ The amount of the Fund’s interest-bearing debts outstanding as of today is¥124,850million of loan and ¥39,500 million of investment corporation bonds.
Interest-Bearing ・ Concerning the borrowings of ¥16,250 million which will mature by the last businessDebts
day of the twenty-first fiscal period (April 30, 2014), the Fund assumes that the entire
amount will be refinanced excluding the scheduled repayment of ¥250 million.
・ The Fund assumes that there will be no changes in debt amounts other than the above.
Investment Units ・ The Fund assumes that the number of investment units is 372,553 units outstanding asof today.
・ Cash distribution per unit is calculated according to the Fund’s distribution policy
outlined in its Articles of Incorporation.
Cash Distribution ・ The Fund will break down and distribute the reserve for reduction entry; the assumed
amounts are the 158 million yen in the twenty-first fiscal period (April 30, 2014).
per Unit
・ 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 the regulations of The Investment Trusts Association,
OthersJapan, which affect the above forecasts.
・ The Fund assumes that there will be no material changes in general economic conditions
and real estate markets.
－3－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
Consumption taxes Receivable
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
Leasehold rights in trust
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

238,626
317,239,720－4－

19th Period
As of Apr. 30, 2013(¥000)

20th Period
As of Oct. 31, 2013(¥000)

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

10,263,757
16,789,109
241,833
76,950
11
114,640
331,455
27,817,757

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

32,215,010(4,585,397)
27,629,612
94,262(41,717)52,544
709,633(248,354)
461,279
20,836(8,281)
12,55462,904,814
97,319,768(22,856,103)
74,463,665
260,805(189,593)
71,212950,092(585,695)
364,396
379,034(189,279)
189,755
204,369,361
43,691(3,791)
39,90052,243
370,611,340

1,900,904－
1,037
1,901,942

1,900,904
3,232,022805
5,133,732

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

158,288
410,880
569,168
376,314,241

85,63085,630393,914,483

75,82175,821
404,207,821

Liabilities
Current liabilities
Trade accounts payable
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－5－

19th Period
As of Apr. 30, 2013(¥000)

20th Period
As of Oct. 31, 2013(¥000)

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

949,472
28,200,000
8,439
1,055,426
593,924265－
1,751,651
170,623
32,729,803

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

39,500,000
96,650,000
33,3884,176,225
15,712,680
156,072,295
188,802,099

185,455,446

211,430,494

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

339,120
339,120
3,636,107
3,975,227
215,405,721
215,405,721
404,207,821

(2) Statements of Income and Retained Earnings

19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥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
Total operating expenses
Operating profit
Non-operating revenues
Interest income
Insurance income
Reversal of cash distributions payable
OthersTotal non-operating revenues

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

10,898,220
1,479,947

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

6,080,501
983,961
28,521
65,884
7,200
84,516

7,128,834

7,250,586

5,544,747

5,127,582

2,656

2,841
－
5,065
897
8,804

8,294
6,536
75
17,563Non-operating expenses
Interest expenses
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
Loan arrangement fees
Investment units issuance costs
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)－6－

20th Period
from May 1, 2013
to Oct. 31, 2013(¥000)

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－
12,378,167

864,625
392,608
9,808
82,39447,254
102,915
1,499,606
3,636,780
3,636,780
842
8
850
3,635,929
177
3,636,106

(3) Statements of Changes in Net Assets
19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥000)

Unitholders' equity
Unitholders' capital
Balance at the beginning of current period
Changes of items during the period
Issuance of investment units
IssuanceTotalof investmentchanges ofunits
items during the period
Balance at the end of current period
Surplus

20th Period
from May 1, 2013
to Oct. 31, 2013(¥000)

185,455,446

185,455,446－－
185,455,446

25,975,047
25,975,047
211,430,494

100,000

100,000－－
100,000

239,120
239,120
339,120

100,000

100,000－－
100,000

239,120
239,120
339,120

3,912,991

4,026,484－(3,912,897)
4,026,390
113,493
4,026,484(239,120)(3,787,186)
3,635,929(390,377)
3,636,107

4,012,991

4,126,484(3,912,897)
4,026,390
113,493
4,126,484(3,787,186)
3,635,929(151,257)
3,975,226
3,975,227

189,468,438

189,581,931－(3,912,897)
4,026,390
113,493
189,581,931

25,975,047(3,787,186)
3,635,929
25,823,790
215,405,721

189,468,438

189,581,931－(3,912,897)
4,026,390
113,493
189,581,931

25,975,047(3,787,186)
3,635,929
25,823,790
215,405,721

Voluntary reserve

Issuanceof investment
units entry
Reservefor reduction
Balance at the beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Issuance ofTotal
investmentchangesunitsof items during the period
Balance at the end of current period
Total voluntary reserve

Balance at the beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
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
Provision of reserve for reduction entry
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
Issuance of investment units
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
Issuance of investment units
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period－7－(4) Statements of Cash Distributions

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

calculating

distribution

19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥)
4,026,484,621

20th Period
from May 1, 2013
to Oct. 31, 2013(¥)
3,636,107,436－

89,422,564

3,787,186,676(12,412)3,725,530,000(10,000)

239,120,122－

177,823－

I 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), the Fund
decided to have maximum cash
distribution amount treated as
deductible dividends, the Fund
distributed the entire unappropriatedretainedearnings
exceptforfractional 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.

－8－

In order to qualify for special tax
treatment under Article 67-15 ofSpecial Taxation Measures Law (Law
No. 26 of 1957), the Fund decided tohave maximum cash distribution
amount treated as deductible
dividends, the Fund distributed theentireunappropriatedretainedearnings and partial reversal ofcompression reserves. As a result,
the total amount of cash distributionfor
thisfiscalperiodwas¥3,725,530,000.
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
New unit issuance costs
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
Purchase of intangible fixed assets
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
Proceeds from issuance of units
Payments of new unit issuance costs
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－9－19th Period
from Nov 1, 2012
to Apr. 30, 2013(¥000)

20th Period
from May 1, 2013
to Oct. 31, 2013(¥000)

4,027,392
1,654,767
11,133－9,808(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

3,636,780
1,658,262
11,33947,254
9,808(2,841)
1,257,234
10,885(34,758)(114,640)
26,730(312,681)(196,747)(80,752)(348,715)
5,758
5,572,916
2,841(1,248,509)(1,054)
4,326,194(55,253)(820,383)－(268,502)
178,697(943,181)
299,540(1,609,084)(2,227,627)(6,769,401)(3,232,022)(205,971)
304,639(1,238,617)
1,477,044(11,891,957)(1,000,000)
22,500,000(24,950,000)－
6,000,000(20,850,000)
25,975,047(47,254)(3,783,733)
7,294,060(271,701)
27,324,568
27,052,866－－(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 December 12, 2013. This report was prepared in English solely for the convenienceof and reference 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 theoriginal. (Japanese version) http://www.nre-of.co.jp/site/file/tmp-VtxhP.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.

－10－