February 10, 2011
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.
Representative Executive Director Yuji Yokoyama(Code number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Kosei Murakami
Contact CFO and Director Morio Shibata(TEL 03-3246-3677)

Notification Concerning Financial Results Forecast
for the Periods Ending August 31, 2011 and February 29, 2012
Nippon Accommodations Fund Inc. (“NAF”) provided notification of its results forecast for the period
ending August 31, 2011 (11th Period: March 1, 2011 to August 31, 2011) and the period ending February
29, 2012 (12th Period: September 1, 2011 to February 29, 2012), as follows.
For the results forecast for the period ending February 28, 2011 (10th Period: September 1, 2010 toFebruary 28, 2011), for which we provided notification on October 18, 2010, there is no change in theresults forecast as of February 10, 2011.

For the period ending
August 31, 2011

Total
revenues

Operatingincome

Incomebeforeincometaxes

Million yen

Million yen

Million yen

Million yen

Distribution perunit (Distributionin excess ofearnings is notincluded)
Yen

7,461

3,366

2,551

2,550

13,000Million yen

Million yen

Million yen

Million yen

7,456

3,402

2,649

2,648

Net income

Distribution
in excessof earnings
per unit－(11th Period)
For the period ending
February 29, 2012

Yen
13,500－(12th Period)
Period ending August 31, 2011:
Period ending February 29, 2012:

Projected number of investment units issued as of the period-end
Projected number of investment units issued as of the period-end

196,178 units
196,178 units

Notes
1.

The above results forecast is represented by current figures calculated based on “Periods ending August 31, 2011 andFebruary 29, 2012: Underlying assumptions of financial results forecast,” and actual total revenues, operating income,income before income taxes, net income and distribution per unit may vary due to the acquisition or sale of properties,etc. in the future, fluctuations in the real estate market or other changes in the environment in which NAF operates. Inaddition, these forecasts do not guarantee the distribution amount.
A forecast revision shall be performed if a large deviation from above forecast is expected.
All amounts less than a single unit has been disregarded.

2.
3.


The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club) andthe Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction trade newspaperof the Ministry of Land, Infrastructure, Transport and Tourism.
NAF website: http://www.naf-r.jp/english/index.html

Please note that this English translation of the Japanese original document is provided solely for information purposes. In theevent of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

<Caution> This document is a press release intended for general publication regarding financial results forecast for the periods
ending August 31, 2011 and February 29, 2012 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof, prepared by NAF.
1

[Reference] Periods ending August 31, 2011 and February 29, 2012: Underlying assumptions of financial results
forecast
Items

Operating period:

Underlying assumptions
Period ending August 31, 2011(184 days from March 1, 2011 to August 31, 2011)
Period ending February 29, 2012(182 days from September 1, 2011 to February 29, 2012)-The number of properties and real estate trust beneficiary interests held by NAF asof the date of this document is 63 (hereinafter, “properties acquired”).
- NAF has concluded a sales contract (acquisition) whereby NAF shall acquire thefollowing 19 properties and real estate trust beneficiary interest (hereinafter,“properties to be acquired”) with condition precedent that NAF investment units will
be issued, etc. The properties to be acquired and the date of handover are as follows.
<March 1, 2011 handover (planned)>“Rental Apartments”
Park Axis Shin Sapporo, Park Axis Yokohama Idogaya, Park Axis Chiba
Shinmachi, Park Axis Kamata Ichibankan, Park Axis Chiba, Park Axis Taito
Negishi, Park Axis Esaka Hiroshibacho, Park Axis Komagome, Park Axis Utsubo
Koen, Park Axis Itabashi Honcho Nibankan“Other Accommodation Assets” (Dormitories and Corporate Housing)

Investment assets

Dormy Ashiya, Kawaijuku Kyoto Gakushin Ryo, Sundai Horikawa Ryo, Dormitory

and total revenues:

Rakuhoku, Rikkyo University International Dormitory (RUID) Shiki, Dormy Naka
Itabashi, Philosophia Nishidai, Dormy Musashi Kosugi<April 1, 2011 handover (planned)>“Rental Apartments”
Shibaura Island Air Tower-It is assumed that no transfer of properties (acquisition of new properties, sale ofproperties acquired, etc.) shall occur by February 29, 2012 subsequent to theaforementioned purchase of the properties to be acquired.
-Revenues from properties to be acquired shall be calculated taking into accountinformation provided from sources such as previous owners, market trends,
contracts with tenants, etc.
-The occupancy rate at end of period for total properties is expected to be approx.
95% at August 31, 2011 and February 29, 2012, respectively.
-Fluctuations due to the transfer of investment assets are possible.
-Fixed property taxes and urban planning taxes charged to income are expected tobe ¥281 million for the period ending August 31, 2011 and ¥280 million for theperiod ending February 29, 2012. Although fixed property taxes and urban planning

Operating expenses:

taxes relating to properties to be acquired are settled based on the number of days
said properties are held between NAF and the previous owners, however, because
the amount equivalent to the aforementioned taxes is included in the acquisition
cost, it will not be expensed.

<Caution> This document is a press release intended for general publication regarding financial results forecast for the periods
ending August 31, 2011 and February 29, 2012 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof, prepared by NAF.
2

-Repair expenses and property management fees are being charged to income in theamount expected as necessary during the operating period. Please note that theactual repair expenses and property management fees during the operating period
may differ from projections due to the possibility of emergency repair expenses orproperty management fees incurred as a result of damage, etc. to buildings
Operating expenses:

because of factors difficult to foresee, generally possible discrepancies in amounts
depend on the accounting period and irregularity of repair expenses and property
management fees.
-Depreciation and amortization, calculated based on the straight-line method
including incidental expenses at acquisition, is expected to be ¥1,583 million for theperiod ending August 31, 2011 and ¥1,602 million for the period ending February
29, 2012.
-As of the date of this document, NAF’s balance of interest-bearing debt is ¥105,000
million. The proceeds from the issuance of new units decided at the Board ofDirectors’ meeting held on February 10, 2011 (hereinafter, “the issuance of newunits”), newly procured borrowings and own funds shall be applied to the purchaseof properties to be acquired.
-When setting these projections, it is assumed that the balance of interest-bearing

Interest-bearing debt
and non-operating
expenses:debt will be ¥113,000 million, and that no subsequent fluctuations shall occur untilFebruary 29, 2012, following the completion of the issuance of new units andpurchase of properties to be acquired. It is also assumed that any loans whose
repayment date falls during said periods shall be completely refinanced.
-Interest expenses and interest expenses on investment corporation bonds isprojected to be ¥749 million for the period ending August 31, 2011 and ¥752 million
for the period ending February 29, 2012 (including all related expenses such asamortization of investment corporation bond issuance costs, etc.).
-Temporary expenses for the period ending August 31, 2011 are expected to consistof ¥65 million in costs related to the issuance of new units.
-We assume a total of 40,000 new units through the issuance of new units, consistingof 37,500 units by public offering and 2,500 units by third party allocation to be

Number of units
issued:completely issued in addition to the 156,178 units outstanding as of the date of thisdocument.
-It is assumed that, subsequent to the issuance of new units, there shall be noissuance of new units until February 29, 2012.
-Distribution per unit for each operating period is calculated based on 196,178 units
outstanding expected at end of period subsequent to the complete execution of theissuance of new units.

Distribution per unit:-For the calculation of distributions (distributions per unit), the cash distributions
policy provided in NAF Articles of Incorporation is assumed.
-Distribution per unit may change due to fluctuations in rent income as a result ofmovements of tenants, etc., property transfers, fluctuations in interest rates,
additional issuance of new units, among others.

Distribution in excessof earnings per unit:-No distribution in excess of earnings is scheduled as of the date of this document.

<Caution> This document is a press release intended for general publication regarding financial results forecast for the periods
ending August 31, 2011 and February 29, 2012 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof, prepared by NAF.
3