For Immediate Release

June 15, 2012
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:
Kenji Tsuga, Chief Investment Officer, NOF
TEL: +81-3-3365-0507

Nomura Office Fund Announces Financial Results
for the Fiscal Period Ended April 30, 2012

Nomura Real Estate Office Fund, Inc. (“Nomura Office Fund”, “NOF” or the “Fund” hereafter) (TOKYO:8959)(URL: http://www.nre-of.co.jp/english/), announces its financial results for the seventeenth fiscal period (November
1, 2011 to April 30, 2012).
1. Outline of Financial Results for the Fiscal Period Ending April 30, 2012
(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, 2012
October 31, 2011

Millions of

yen

(%)

12,441
13,637

Millions of yen

3,902
4,627

Millions of yen(-8.8)
(4.0)

5,529
6,219

(%)

(-15.7)(4.5)

Ordinary Income(%)

Millions of yen(%)(-11.1)
(1.2)

3,903
4,628

(-15.7)(2.8)

ROE(Return on
Equity)Net Income
per Unit

Net Income
Period Ended
April 30, 2012
October 31, 2011

Operating Profits

yen

ROA
(Return on
Assets)%12,78915,1642.1
2.4

Ordinary Income
to Operating
Revenues Ratio
%

%

1.0
1.2

31.4
33.9

(2) Distributions

Period Ended
April 30, 2012
October 31, 2011

Cash
Distributions
per Unit

Total CashDistributions

Distributions in
Excess of Net
Income per
Unit

Distributions
in Excess of
Net IncomeyenMillions of yen

yen

Millions of yen

12,79014,837

3,902
4,527

0
0

0
0

Distributions
to Net Asset
Ratio

PayoutRatio(Note)

%

100.0
97.8

%

2.1
2.4

(Note 1) Payout Ratio is rounded off to the first decimal place.
(Note 2) Cash Distributions per Unit for the period ended October 31, 2011 is calculated by dividing the amount after adding theprovision of reserve for reduction entry (¥100 million) to unappropriated retained earnings by the number of investment units
issued and outstanding.

－1－(3) Financial Position
Total Assets
Period Ended
April 30, 2012
October 31, 2011

Capital Adequacy
Ratio

Net Assets

Millions of yen

Millions of yen

397,667
400,390%

189,458
190,082(Reference) Owned Capital: As of April 30, 2012

JPY189,458mln

Net Assets per Unit
yen

47.6
47.5

As of October 31, 2011

620,923
622,970
JPY190,082mln(4) Cash Flows
Cash Flows fromOperating
Activities
Period Ended
April 30, 2012
October 31, 2011

Cash Flows from
Investing Activities

Millions of yen

Cash Flows from
Financing Activities

Millions of yen

4,914
13,789Cash and Cash
Equivalents
at End of Period

Millions of yen-8,765-1,502Millions of yen-5,773-7,67926,69236,317

2. Forecasts of Financial Results for the Fiscal Period Ending October 31, 2012 (From May 1, 2012 to
October 31, 2012)
Operating
Revenues
Period Ending
October 31, 2012

Operating
Profits

Ordinary
IncomeNet Income

Millionsof yen(%)

Millionsof yen(%)

Millionsof yen(%)

Millionsof yen(%)

12,608

(1.3)

5,335

(-3.5)

3,754(-3.8)

3,753(-3.8)Cash
Distributions
per Unit

Distributions
in Excess of
Net Income
per Unityen

yen

12,3000(Reference) Forecast Net Income per Unit: JPY12,300

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, 2012
305,123
As of October 31, 2011
305,123b. The number of treasury investment units
As of April 30, 20120
As of October 31, 20110(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－

[Exhibit] Assumptions for Forecasts of Financial Results for the Fiscal Period Ending October 31, 2012
Item
Assumptions
Period・ Eighteenth fiscal period: May 1, 2012 through October 31, 2012
・ The Fund assumes that the investment portfolio consisting of 51 properties
owned by the Fund as of the end of the seventeenth fiscal period will remain
Investment Portfolio
unchanged up to the end of the eighteenth fiscal period (October 31, 2012).
・ In practice, the investment portfolio is subject to potential change.
・ The forecast of operating revenues for the eighteenth fiscal period is based upon
the operating revenues from 51 properties owned by the Fund as of end of theseventeenth fiscal period.
Operating Revenues ・ The forecasts of the level of the rent and vacancy rates are based on the trend oftenants, competing buildings in the neighborhood, and the recent real estatemarket 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 andthe purchaser on a daily pro-rata basis and settled at the time of acquisition, andsuch taxes are deemed as the acquisition costs, not as expenses.
・ Property related taxes are calculated as rental expenses, estimated amount of¥1,155 million.
・ Outsourcing expenses are estimated at ¥1,421 million.
・ As for the repair and maintenance, the Asset Management Company (Nomura
Real Estate Asset Management Co., Ltd.) estimates the required amounts for therespective properties for each of the fiscal periods based on the medium- andOperating Expenses
long-term repair plans. However, it is possible that the actual repair expenses forthe 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 ofrepair expenses are not required every year.
・ Rental revenues after deducting the rental expenses (including depreciation costs)
is estimated at ¥6,526 million (excluding profits on sale of real estate, etc.).
Depreciation costs are estimated at ¥1,694 million.
・ The operating expenses other than the rental expenses (including asset custodyfees and general administration fees) are estimated at ¥1,190 million.
Non-Operating
・ Interest payable is estimated at ¥1,426 million.
Expenses・ Loan-related expenses are estimated at ¥139 million.
・ The amount of the Fund’s interest-bearing debts outstanding as of today is¥143,900 million of loan and ¥39,500 million of investment corporation bonds.
・ Concerning the borrowings of ¥30,650 million which will mature by the lastInterest-Bearing
business day of the eighteenth fiscal period (October 31, 2012), the Fund assumes
Debts
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 theabove.
・ The Fund assumes that the number of investment units is 305,123 units
Investment Units
outstanding as of today.
・ Cash distribution per unit is calculated according to the Fund’s distribution policy
outlined in its Articles of Incorporation.
Cash Distribution
・ Cash distribution per unit may vary due to various factors, including changes in the
per Unit
investment portfolio, changes in rent income caused by the tenant replacements,
and unforeseen repairs.
Distribution in
・ The Fund does not currently plan any distribution in excess of net income per
Excess of Net
unit.
Income per Unit
・ The Fund assumes that there will be no amendments in legislation, taxation,
Japanese GAAP, listing requirements and Investment Trusts Association
Othersregulations, 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
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

16th Period
As of Oct. 31, 2011(¥000)

238,626
317,239,720－4－17th Period
As of Apr. 30, 2012(¥000)

20,049,043
16,268,623
542,060
85,55817－352,758
37,298,061

10,226,772
16,465,915
220,998
92,802
14
157,794
320,473
27,484,770

27,510,622(3,082,703)
24,427,918
73,113(27,149)
45,963
624,533(158,920)
465,612
14,633(3,892)
10,741
57,405,167
94,260,120(18,629,336)
75,630,783
274,931(172,202)
102,728
947,131(516,690)
430,441
271,827(133,065)
138,762
201,783,441
30,946(22,892)
8,053
40,394360,490,008

31,036,112(3,514,713)
27,521,398
92,224(30,660)
61,563696,224(183,692)
512,531
15,727(5,045)
10,681
61,683,840
95,156,330(19,827,708)
75,328,622
274,931(181,498)
93,432
947,131(546,524)
400,606
288,143(147,857)
140,286
201,783,441
30,946(26,283)
4,662
46,574
367,587,642

1,900,904
1,829
1,902,733

1,900,904
1,565
1,902,469

171,442
410,850
582,292
362,975,034

176,608
410,850
587,458
370,077,570

117,903
117,903400,390,999

105,248
105,248397,667,589

16th Period
As of Oct. 31, 2011(¥000)
Liabilities
Current liabilities
Trade accounts payable
Short-term debt
Current portion of investment corporation bonds
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
Provision for loss on disaster
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－

17th Period
As of Apr. 30, 2012(¥000)

1,028,305
7,900,000
5,000,000
39,000,000
5,902
1,516,993
790,967296
215,6421,864,744
120,515
1,540
57,444,909

636,472
3,900,000－
50,000,000
4,127
998,832
759,986304－
1,894,408
83,299－58,277,430

39,500,000
93,250,000
2,783
3,882,474
16,228,116
152,863,374
210,308,283

39,500,000
90,000,000
1,105
4,217,187
16,213,849
149,932,142
208,209,572

185,455,446

185,455,446－－
4,627,269
4,627,269
190,082,716
190,082,716
400,390,999

100,000
100,000
3,902,570
4,002,570
189,458,017
189,458,017
397,667,589

(2) Statements of Income and Retained Earnings
16th Period
from May 1, 2011
to Oct. 31, 2011(¥000)

17th Period
from Nov. 1, 2011
to Apr. 30, 2012(¥000)

Operating revenues
Real estate rental revenues
Other rental revenues

11,223,340
1,296,836

11,245,514
1,195,990

Gain on sales of real estate

1,116,899

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

13,637,076－
12,441,505

6,110,487
105,767
990,285
28,90264,912
12,000105,415

5,726,470

Total operating expenses

7,417,771

6,912,459

Operating profit

6,219,305

5,529,045

Non-operating revenues
Interest income
Penalty income
Compensation for restoration costs
OthersTotal non-operating revenues

3,369
26,497
101,792
3,242
134,901

3,091
42,158－12,47357,722Non-operating expenses
Interest expenses
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
Loan arrangement fees
OthersTotal non-operating expenses

1,097,074
429,978
13,224112,153
73,706
1,726,137

1,044,037
419,019
12,655
121,780
85,9391,683,432

Ordinary income

4,628,069

3,903,336

Income before income taxes

4,628,069

Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

974
7
981
4,627,087
181
4,627,269

3,903,336
922
3
925
3,902,410
159
3,902,570－6－－
1,001,972
28,76464,27812,00078,973

(3) Statements of Changes in Net Assets
16th Period
from May 1, 2011
to Oct. 31, 2011(¥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

17th Period
from Nov. 1, 2011
to Apr. 30, 2012(¥000)

185,455,446

185,455,446－
185,455,446－
185,455,446

－

－

－
－
－

100,000
100,000
100,000

－

－

－
－
－

100,000
100,000
100,000

4,428,126

4,627,269－(4,427,944)
4,627,087
199,142
4,627,269(100,000)(4,527,109)
3,902,410(724,699)
3,902,570

4,428,126

4,627,269－(4,427,944)
4,627,087
199,142
4,627,269(4,527,109)
3,902,410(624,699)
4,002,570

189,883,573

190,082,716(4,427,944)
4,627,087
199,142
190,082,716(4,527,109)
3,902,410(624,699)
189,458,017

189,883,573

190,082,716(4,427,944)
4,627,087
199,142
190,082,716(4,527,109)
3,902,410(624,699)
189,458,017

Voluntary reserve
Reserve for reduction entry

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
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
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 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－7－－(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

16th Period
from May 1, 2011
to Oct. 31, 2011(¥)
4,627,269,355
4,527,109,951(14,837)

17th Period
from Nov. 1, 2011
to Apr. 30, 2012(¥)
3,902,570,138
3,902,523,170(12,790)

100,000,000－

159,404

46,968The 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) to havemaximum cash distribution amounttreated as deductible dividends, theFunddistributed
theentireunappropriated retained earnings
except for fractional amounts smaller
than one yen per each investment
unit. As a result, the total amount ofcash distribution for this fiscal period
was ¥4,527,109,951.
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
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¥3,902,523,170.
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(Decrease) in provision for loss on disaster
Interest income
Interest expenses
Loss on disposal of property and equipment(Increase)Decrease in rental receivables(Increase) in consumption taxes receivable
Increase (Decrease) in trade accounts payable(Decrease) in other accounts payable
Increase (Decrease) in accrued consumption taxes(Decrease) Increase in rent received in advance
Increase (Decrease) 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
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Redemption of investment corporation bonds
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－9－16th Period
from May 1, 2011
to Oct. 31, 2011(¥000)

17th Period
from Nov. 1, 2011
to Apr. 30, 2012(¥000)

4,628,069
1,732,901
7,185
13,224(46,795)(3,369)1,527,053
764(362,512)－
410,035(558,230)
49,276(64,736)
37,087
8,101,016(117,175)
15,353,793
3,369(1,566,498)(1,048)13,789,616

3,903,336
1,717,655
10,425
12,655(1,540)(3,091)
1,463,057
2,707
321,062(157,794)(391,832)(256,954)(215,642)
29,664(37,216)－
9,449
6,405,939
3,091(1,494,038)(914)
4,914,078(82,405)(783,342)(72,899)
74,359(1,346,801)
708,944(1,502,143)(7,976,696)(1,108,951)(114,331)
449,044(620,009)
605,742(8,765,201)

2,900,000(4,800,000)
17,900,000(19,250,000)－(4,429,007)(7,679,007)
4,608,465
31,709,201
36,317,666

1,000,000(5,000,000)
19,000,000(11,250,000)(5,000,000)(4,523,855)(5,773,855)(9,624,979)
36,317,666
26,692,687

Disclaimer
The information above is excerpt of and translated from Brief Report on Closing of Accounting Report (“Kessan
Tanshin”) in Japanese released on June 15, 2012. 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-q7cqJ.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－