October 7, 2013
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
1-1, Nihonbashi-Muromachi 2-Chome, Chuo-Ku,
Tokyo 103-0022
Nippon Accommodations Fund Inc.
Executive Director
Nobumi Tobari(Code Number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
President and CEO
Kosei Murakami
Contact CFO and Director
Satoshi Nohara(TEL. 03-3246-3677)

Notification Concerning Amendment of Real Estate Management Contract
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) has concluded a memorandum to amend thereal estate management contract with Mitsui Fudosan Housing Lease Co., Ltd. (“MFHL”), NAF’s master property
management company, concerning the management fees for the 79 properties NAF owns as of the end of the 14th
period ended February 2013 (excluding Shibaura Island Air Tower).
1. Purpose and Summary of Change
The ongoing property management fees (the “PM fees”) consist of the portions linked to NAF’s revenues fromproperty leasing and the portions that generate from services related to lease contracts with new tenants andrenewals with existing tenants, etc. Due to this structure, there may be cases in which NAF’s operating income fromproperty leasing decreases while PM fees increase in such period when tenant turnover increases intensively. Thus,
NAF’s operating income from property leasing and the PM fees are not always synchronized.
Accordingly, NAF has continued discussions with MFHL regarding adoption of a PM fee syst em that is linked toNAF’s operating income from property leasing and signed an amendment to change the former PM fee system intoa system that links PM fees to NAF’s revenues and operating income from property leasing (excluding the PM fees,depreciation and real estate taxes, etc.), starting on November 1, 2013.
The change, which shall align NAF’s operating income from property leasing and PM fees, will allow the twoentities to firmly share NAF’s basic policy of striving to maximize unitholder value, presumably leading to moreenhanced operational capabilities as well as reinforcement and utilization of the value chains of the Mitsui FudosanGroup.
Furthermore, as MFHL falls under the “related parties and the like” (see Note), the decision to conclude thememorandum has been carried out with deliberation and approval by the compliance committee of NAF’s
investment trust management company, as well as by deliberation and decision of the investment committee, inaccordance with NAF’s self-established rules on asset management relevant to transactions with related parties
and the like.
(Note) "Related parties and the like" means related parties and the like of an investment trust management company which has
concluded an asset management contract with NAF, as determined in the Order for Enforcement of the Act on Investment
Trust and Investment Corporation, Article 123.

2. Outlook for Management after the Change
The impact on NAF’s results for the period ending February 2014 (September 1, 2013 – February 28, 2014) will beminor, and there will be no change to the financial results forecast of the period.
Japanese original document was distributed to the press clubs within Tokyo Stock Exchange (KabutoClub) and the press club of the Ministry of Land, Infrastructure, Transport and Tourism, and to the pressclub for construction publications of the Ministry of Land, Infrastructure, Transport and Tourism.
NAF website: http://www.naf-r.jp/english/index.html

This English language notice is a translation of the Japanese language notice dated September 27, 2013.
Please note that this English translation of the Japanese original document is provided solely for information
purposes. In the event of any discrepancy between the Japanese original and this English translation, the Japaneseoriginal shall prevail.

(Reference)■Illustrative Diagram of the Change in the PM Fee System*The PM fee is the fees paid to Mitsui Fudosan Housing Lease, NAF’s master property management company, for the entrusted property management services,and does not include building management fees.

Fees generate forservices uponsigning contracts
with tenants<After change> *1<Before change>

Linkedtorevenues

Fees linked torevenues fromproperty leasing

Transition to asystem that is
linked to NAF’s
income＋Fees related to leasingetc.
●Signing new contracts●Renewing existing contracts●Managing construction work

Fees linked torevenues fromproperty leasing＆
Fees linked tooperating income fromproperty leasing＊2

Linkedtorevenues

Linkedtoincome

Impact of fees accruing upon provision of services
In the phase where number of tenant turnover increases, NAF’s revenue drops while PMfees increase
Increase and decrease in NAF’s income ↑↓≠Increase and decrease in PM fees ↑↓Fee system not necessarily linked to NAF’s income

Increase in NAF’s income ↑＝Increase in PM fees ↑Decrease in NAF’s income ↓＝Decrease in PM fees ↓Fee system linked to NAF’s income

Reinforced Value Chains of the Mitsui Fudosan Group・Enhance the shared objective of maximizing unitholder value with Mitsui Fudosan
Housing Lease, the master property management company
・Enhancement and reinforcement of utilizing the value chains of the Mitsui FudosanGroup(*1) Effective as of November 1, 2013, the changed PM fee system will cover the 79 properties NAF owns as of the end of the 14th period (excluding Shibaura Island Air Tower).
(*2) Operating income from property leasing less PM fees, depreciation and real estate taxes, etc.