#1MASTER FUND Nomura Real Estate Master Fund., Inc. Investor Presentation 14th Fiscal Period Ended August 31, 2022 October 18, 2022 MASTER FUND#2Table of Contents 1. Financial Highlights • Financial Highlights for Aug. 2022 (14th) FP 2. External Growth 4 8. APPENDIX • • Changes in Various Indicators NOI Analysis by Sector Balance Sheet Distribution Policy and Distribution in Excess of Net Earningsin the 14th FP Driving Force for External Growth ~4 Major Brands Development by Sponsor~ Track Record of Growth since Incorporation Changes in Main Indices • Properties Acquired in Aug. 2022 (14th) and Feb. 2023 (15th) FP 7 • Asset Replacement in the Residential Sector 8 • • Asset Replacement since COVID-19 • External Growth Policy 9 10 3. Internal Growth . Internal Growth Management Status~ 4. Appraisal Valuation • Appraisal Valuation 5. Finance • Financing Status • Diversification of Interest-bearing Debt Procurement 6. Earnings Forecast • Assumptions for Earning Forecasts for Feb. 2023 (15th) FP / Aug. 2023 (16th) FP 7. ESG Measures • Occupancy Rate and Average Rent • 12 • 25 • • Asset Management Status - Office - Asset Management Status - Logistics - Asset Management Status - Residential - Asset Management Status - Retail - Top 5 Tenants by Leased Space Portfolio Summary as of August 31, 2022 Portfolio List 27 • Unitholders 28 30 • ESG Measures (Track Record of Activities) • ESG Measures (E: Environment) • ESG Measures (S: Society) 35 • ESG Measures (G: Governance) 37 ESG Measures (Materiality) • ESG Measures (NMF's Initiatives) • ESG Measures (Initiatives by Asset Management Company) 40 • ESG Measures (Disclosures based on the TCFD Recommendations) 41 ± ± w wwww w 33 34 38 39 • Market Review Leasing Market~ Market Review ~ Sales Market~ Organization and IR Activities 49 50 48 46 47 45 44 ྨ གྷ ྤ ⌘ ཐྭགྷཀྶཾ ཤྩ ཀྨ 8 གཱཤྩཆེ ཆེ བི ཆེ ཆེངེ 66 65 57 54 55 56 52 53 68 69 2#31 Financial Highlights 3#4Financial Highlights for Aug. 2022 (14th) FP Achieved growth in virtual distributions, retained a portion of the gain on sales as internal reserves, and final DPU was 4 yen higher than forecast (to 3,300 yen). Main factors in change of DPU (\/unit) Increased distribution factors Decreased Contributions to distribution factors internal reserves Distributions from gain on sales Increase in utility expenses paid -64 Aug. 2022 FP Increase in PM fee -21 Acquisition PMO Hamamatsucho II, PROUD FLAT Togoshi-Ginza, PRIME URBAN Higashi Nakano Court Disposition Ichibancho stear Increase in taxes and public dues -18 Increase in depreciation -16 Decrease in interest expenses, etc. +4 Others -10 Increase in asset 23 (Note 1) 3,300 3,296 3,244 management fees -16 Others -21 96 34 96 74 -129 74 97 -33 80 Increase in rent and common area charges +33 Office +20 Response to earthquake damage -10 Logistics -19 Residential +12 Impact of property acquisition (Landport Ome and three other +109 Retail +13 properties) 3,210 Increase in utility expenses received Impact of property sale -28 3,226 +44 (Ichibancho stear and two other properties) 3,199 Increase in cancellation penalty fee, etc. +19 Impact of deterioration in electricity expenses, etc. -20 Feb. 2022 FP DPU result Rent revenues (portfolio properties) Rental business expenses (portfolio properties) Other External growth (Note 2) Gain on sales, etc. Aug. 2022 FP DPU result Aug. 2022 FP DPU forecasts (Note 1) Contributions to internal reserves exclude a 63 yen per unit reversal of internal reserves for Feb. 2022 FP (loss on the sale of Sundai Azamino), and a 33 yen gain on receipt of donated air-conditioning systems for Landport Hachioji II. (Note 2) Includes the impact of property acquisitions and sales during Feb. 2022 FP. 4#5Financial Highlights for Aug. 2022 (14th) FP Main factors accounting for differences between the (\mln) 13th results and the 14th results (\mln) Ended Ended Feb.28,2022 Aug. 31,2022 Differences Ended Aug.31,2022 Differences Operating Revenue (13th FP) (14th FP) Result (A) Result (B) (B)-(A) (14th FP) Forecasts (C) Rental revenues (B)-(C) Operating Revenue 37,520 39,022 1,501 38,762 259 Rent and common area charges Rental revenues 34,654 35,249 594 35,268 -19 Impact of acquisition and disposition Other rental revenues 2,703 3,015 312 2,736 278 Gain on sales of real estate 162 757 595 757 0 Other rental revenues Operating Expense 22,927 23,437 510 23,294 143 Rental Business Expenses 15,972 16,652 679 16,493 158 Repair Expenses 1,273 1,326 53 1,271 54 Tax and Public Dues 3,246 3,313 66 3,325 -12 Depreciation and Amortization 5,609 5,738 128 5,751 -12 Others 5,842 6,274 431 6,144 129 Loss on sales of real estate 300 -300 0 Asset management fees Amortization of goodwill Other operating expenses Operating profit 3,385 3,460 74 3,450 10 2,622 2,622 2,622 646 703 56 729 -26 14,593 15,584 991 15,467 116 Non-operating revenues 3 0 3 Non-operating expenses 2,216 2,195 Interest Expenses and other financial costs 2,205 2,185 -20 -19 2,196 -0 2,186 -0 Other non-operating expenses 10 Ordinary income 12,380 10 13,392 10 0 1,012 13,271 120 Extraordinary gain and loss 109 109 -50 159 Net income 12,377 13,499 1,121 (Net income excluding realized gain) (12,515) (12,741) (226) Distribution of Earnings (a) 12,377 13,499 1,122 Distribution in excess of net earnings 2,918 2,060 -858 (b) Total distributions (a)+(b) 15,296 15,560 264 13,220 (12,462) 13,202 2,338 15,541 279 (278) 297 -278 18 Increase in utility expenses received Absence of cancellation penalty fee, etc. Gain on sales of real estate Operating Expense Rental Business Expenses Increase in utility expenses paid Increase in depreciation Increase in property management fees Increase in tax and public dues Increase in other expenses Loss on sales of real estate Asset management fees/Other operating expenses Non-operating expenses Interest expenses and other financial costs គន្ថ 8 ន 1,501 594 156 437 312 200 112 595 510 679 294 128 120 -300 131 -20 -19 Internal reserves -300 561 861 (Total Internal reserves) (2,391) (2,952) (561) 300 (2,691) 261 (261) Extraordinary loss 109 Extraordinary loss on natural disasters -46 DPU(\) 3,244 3,300 56 3,296 4 Distributions of earnings per unit (¥) 2,625 2,863 238 2,800 63 Distributions in excess of retained Extraordinary gain and loss (gain on receipt of donation) Net income 155 1,121 earnings per unit [allowance for 444 403 -41 404 adjustment of temporary differences] (¥) Absence of 13th FP's reversal of internal reserves -300 Distributions in excess of retained LTV earnings per unit [other distributions in excess of net earnings] (¥) Total assets Interest-bearing debt Market Capitalization 175 34 -141 22 92 -58 1,187,420 1,187,581 161 1,187,144 437 517,756 43.6% 715,767 517,463 43.6% -292 0.0% 517,713 43.6% -250 14th FP's Reserve of Internal Revenues (Portion of gain on sales of real estate, etc. and an amount equivalent to gain on receipt of donation) -561 0.0% 802,527 86,759 NOI FFO 26,995 27,350 355 27,263 87 20,755 21,001 245 20,894 106 5#62 External Growth 6#7External Growth Properties Acquired in Aug. 2022 ( 14th) and Feb. 2023 (15th) FP (16.4 billion yen across four properties)~ Residential PROUD FLAT Togoshi-Ginza Favorable location with a 4-minute walk from Togoshi- ginza Station, and very close to the Togoshi-ginza Shopping Street, which has as an abundance of convenient facilities necessary for living Office PMO Hamamatsucho II pmo Favorable location in the Hamamatsucho area, which is undergoing redevelopment, and has access to three stations on five lines Residential Acquisition date March 1, 2022 Acquisition price ¥2,550 mln NOI yield (Note) Completion 4.2% February 2020 Acquisition date Acquisition price NOI yield (Note) April 1, 2022 ¥5,500 mln 3.6% Completion July 2020 PRIME URBAN Higashi Nakano Court Located in Higashi-Nakano, which offers a high level of transportation and living convenience, and has good marketability as a rare family-oriented property Residential PROUD FLAT Nezu Yanaka Favorable location with a 6-minute walk from Nezu Station, with good access to major business and commercial districts Acquisition date March 15, 2022 Scheduled acquisition date January 6, 2023 Acquisition price ¥7,020 mln NOI yield (Note) 4.4% April 2009 Scheduled acquisition price NOI yield (Note) Completion ¥1,400 mln 4.2% July 2020 Completion (Note) Calculated by dividing appraisal NOI by acquisition price. 7#8External Growth ~Asset Replacement in the Residential Sector~ Acquired recently built properties that are well located in Tokyo, and disposed of eight properties that were mainly older or in regional areas, to achieve gain on sales of approximately 1.3 billion yen. Acquisition: PROUD FLAT Nezu Yanaka (age: 2.4 years) (Note 1) Komagome Hospital Acquisition date January 6, 2023 Hon-komagome Dori bazu Yanaka Ginza Nippori Sta. Nippori Fabric Town Sta. Sendagi Sta. Yanaka Cemetery PROUD FLAT Nezu Yanaka in L Ueno Junior High School Nippon Medical School Hospital Acquisition price ¥1,400 mln Kototoi Dori Nezujinja Shrine Nezu NOI yield (Note2) Todaimae Sta. 4.2% School Nezu Sta Tokyo University Elementary of the Arts Akafudado PRIME URBAN Hakusan NOI yield (Note3) after depreciation 3.5% Namboku Line The University Hongo Dori of Tokyo The University of Chiyoda Line Ueno Zoological Gardens Ueno Park Ueno Stá. Shinobazunoike Pond Taito Ward Office Tokyo Hospital 0 Disposition: 8 residential properties (average age: 20.0 years) (Note 1) (Note 1) Property Area Sale price Asset age PRIME URBAN Takaido PRIME URBAN Mukojima ¥1,310 mln 35.8 years Tokyo ¥636 mln 33.1 years PRIME URBAN Nishi Funabashi Chiba ¥967 mln 16.6 years PRIME URBAN Chiji Kokan ¥300 mln 14.7 years PRIME URBAN Maruyama Hokkaido ¥257 mln 14.7 years PRIME URBAN Kita Nijuyo ¥459 mln 14.7 years Jo PRIME URBAN Aoi PRIME URBAN Tsurumai ¥763 mln 16.2 years Aichi ¥1,281 mln 14.3 years Disposition schedule Total anticipated disposition price Total appraisal value October 31 2022 ¥5,974 mln ¥4,954 mln Average NOI yield (Note 4) 4.8% Average NOI yield after depreciation (Note 5) Main effects of asset replacement 3.2% • Uguisudani Sta. Tokyo National, . Museum Hibiya Line Achieved 1.28 billion yen gain on sales Improved age of residential sector properties: 16.2 years- → 16.0 years (Note 6) Improved ratio of residential sector properties in the Greater Tokyo area: 84.3% -> 85.3% (Note 1) Asset age is calculated from the scheduled date of acquisition or scheduled date of disposition. (Note 2) Calculated by dividing appraisal NOI by acquisition price. (Note 3) Calculated by deducting the estimated depreciation value from the appraisal NOI and then dividing by the anticipated acquisition price. (Note 4) Calculated by dividing the total actual NOI for 13th and 14th fiscal periods by the disposition price. (Note 5) Calculated by dividing the total actual NOI after depreciation for 13th and 14th fiscal periods by the anticipated disposition price. (Note 6) Comparison of the situation at the completion of asset replacement on this page with the theoretical situation if replacement did not occur. 8#9External Growth Asset Replacement since COVID-19~ Drove external growth with improved portfolio quality and realized gains on sales through continuous asset replacement. Properties acquired (or scheduled to be acquired) from 11th fiscal period (Feb. 2021 FP) (Note 1) 6 properties in Tokyo only: Approximately ¥48.0 billion (Average age: 2.8 years) Logistics 0 Properties disposed of (or scheduled to be disposed of) from 11th fiscal period (Feb. 2021 FP) (Note 1) 12 mainly older or regional properties: Approximately ¥19.7 billion (Average age: 21.5 years) Disposed assets Office Retail Residential • • • Landport Ome II Landport Ome III Office Residential PMO Hamamatsucho II PROUD FLAT Togoshi-Ginza PRIME URBAN Higashi Nakano Court PROUD FLAT Nezu Yanaka Main effects of asset replacement Tokyo *** 83.9%) By acquiring properties in Tokyo and disposing of properties in regional areas, improved the ratio of properties in the Greater Tokyo area (82.7% →> By acquiring recently built properties and disposing of older properties, improved age of portfolio properties (21.6 years → 20.8 years) (Note 2) By acquiring sponsor-developed advanced logistics facilities that are recently built and well located, increased the ratio of properties in the logistics sector (17.7% →>> 20.1%) Realized approximately 2.9 billion yen gain on sales (Note 3) (Note 1) Excludes acquisition of Universal CityWalk Osaka (land) and partial disposition of Mitsubishi Motors Katsushika (land). (Note 2) Comparisons of the situation at the completion of asset replacement on this page with the theoretical situation if replacement did not occur. (Note 3) Excluded because separate to the gain on sales, losses on sales during the fiscal period ended February 28, 2022, amounted to 300 million yen, but an amount was appropriated from internal reserves to avoid impacting distributions. 9#10External Growth Policy Continued selective investment with a focus on sponsor-developed properties and continued dispositions with a focus on asset replacement, etc. Acquisitions • Selective investment with a focus on sponsor-developed properties: Sponsor pipeline of 820 billion yen (Note 1) Quality of properties across four brands (Note 2) Acquisition of properties across four brands Ratio of Greater Tokyo area 98.2% Average age at acquisition 1.1 years PROUD FLAT 11.2% GEMS 8.9% PMO 35.1% Landport 44.8% Disposition ⚫• Flexible disposition through asset replacement and exchange with a focus on properties under consideration (approximately 50 billion yen) Office Properties expected to experience reduced competitiveness due to age and specifications, or reduced profitability due to the future balance between supply and demand in the area, etc. Properties under consideration for disposition Retail Properties that will require considerable time to recover performance after the significant effects of COVID-19, including properties in regional areas Residential Properties expected to experience reduced competitiveness due to being more than 30 years old, being in regional areas, or being small, single-person dwellings, etc. In the event of gains on sales, a portion is added to distributions and, in consideration of such factors as achievement of earnings forecasts and as long as tax can be avoided, internal reserves are increased (as a guide, any portion that exceeds a distribution of 3,300 yen). (Note 1) Figures based on the financial results of Nomura Real Estate Holdings for the first quarter of the fiscal year ended March 31, 2023. Of this amount, completed properties amount to approximately 300 billion yen. (Note 2) The four brands are PMO, GEMS, Landport, and PROUD FLAT series of properties acquired after listing on the stock exchange. For details, refer to page 48. 10 10#113 Internal Growth 11#12Internal Growth Management Status~ Office As a result of continuing leasing that leverages property competitiveness and property management capabilities, the period-end occupancy rate recovered to the 98% range. Changes in move-in/out floor areas and period-end occupancy rates Occupancy Rate (%) 99.8 99.4 98.9 96.4 move-out (tsubo) move-in (tsubo) Reasons for move in (Note 1) 97.9 98.2 98.1 Increase in the percentage of move-ins due to positive reasons Feb. 2022 FP Aug. 2022 FP Feb. 2023 FP Approximately 2,500 tsubo assumption Move-ins 61 42 18 5,825 Number of above with positive 3,194 3,637 reasons 54 34 16 2,255 Increased floor area, 2,052 (Note 1) (89%) (81%) new facility, improved (89%) 1,351 1,434 location and specifications (2,272) (1,809) (3,130) (2,786) (3,670) (6,944) Approximately 2,500 tsubo assumption Reasons for move-outs Decrease in the percentage of COVID-19- related move-outs (Note 2) COVID-19 pandemic Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 (Forecast) (Note 1) These figures show contracted sections and sections for which NMF received applications for occupancy as of the end of September 2022. (Note 2) These figures show sections for which cancellations are planned as of the end of September 2022. Feb. 2022 FP Aug. 2022 FP Feb. 2023 FP Number of cancellations 40 35 33 Number of above due to COVID-19 18 16 14 Remote work and slump in earnings (45%) (46%) (42%) 12#13Internal Growth Management Status~ Office Despite softness in the market, we controlled rent levels while leveraging rent gaps. Amount of change in monthly rent and rate of change in monthly rent upon tenant replacement (Note 1) (min) Monthly rent decrease 17.6% 20.7% 15.9% Amount of change in monthly rent and rate of change in monthly rent upon rent revision (Note 1) Monthly rent increase Average rate of rent increase within rent revision +5.7% with rent increase Monthly rent change rate Average rate of rent increase within tenant replacement with rent increase +14.7% I Monthly rent increase Monthly rent change rate Monthly rent decrease (min) 17 17 17 69 8 7 2.4% 6 4 4.6% 4 T 7.0% -1 3.4% 3.0% -2 1.6% -0.3% -6 -2.5% -6 Change rate when rent decrease in one large section is +0.8% excluded (22,830 tsubo) (22,254 tsubo) (16,384 tsubo) (27,162 tsubo) (35,820 tsubo) (27,697 tsubo) -16 -2.3% 7 4 7 (2,255 tsubo) (1,109 tsubo) (2,052 tsubo) (3,194 tsubo) (5,825 tsubo) (3,637 tsubo) Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Rent gap (as of end of August 2022) (Note 2) : 4.0% (market rents are higher than current rents) [Future policy and forecasts] Continue leasing program leveraging the strengths of NMF with the aim of maintaining stable occupancy rates at around 98% (Period-average occupancy rate for August 2022 FP: 97.7% ⇒ Expected rate for February 2023 FP: 97.7%) (Note 3) [Strengths of NMF] Property competitiveness Advantages of location Competitive advantage of physical assets Property management capabilities Property management capabilities of the Nomura Real Estate Group (Note 1) Figures in brackets at the bottom of the charts represent floor areas of rent revisions or tenant replacements. The rates of change in monthly rents are calculated as weighted averages of all relevant sections. This is the same for other sectors explained later. (Note 2) Calculated from owned properties, excluding properties when leased as a whole building. (Note 3) Calculated from assumed floor areas of move ins/outs in the earnings forecast. 13#14Internal Growth ~Management Status~ Office <PMO> These properties have continued to perform well by leveraging high levels of marketability and management capabilities. Leasing results for August 2022 FP New move ins . . . 911 tsubo Rent change rate ... +1.1% Reasons for move-ins by tenants who most recently moved in > PMO Hamamatsucho II Marketability High evaluation of PMO's appealing designs, quality of common areas and wet areas, and concept of enhancing employee motivation Management capabilities Concluded contracts by re-approaching tenants with whom we did not reach an agreement in conditions for another PMO a few years ago OPMO Nihonbashi Odenmacho Marketability Highly evaluation of PMO's sophisticated exterior designs and brand power to secure excellent talent toward business expansion > PMO Hirakawacho Marketability Highly evaluate sophisticated exterior designs unique to PMO, and high security & uniqueness associated with the one tenant per floor style Pmo > PMO Hatchobori III Synergy effects with a sponsor developed brand Tenant in H'O who wanted to move in PMO a few years ago but could not reach an agreement on the conditions relocated for expansion. > PMO Nihonbashi Odenmacho Synergy effects with a sponsor developed brand Concluded contracts due to PMO's marketability and H'T usage service offered by the sponsor for free H1O HUMAN FIRST OFFICE H'T HUMAN FIRST TIME 14#15Internal Growth Management Status~ Office Only a limited impact is expected as rent ranges, standard floor areas, and other characteristics differ between properties to be supplied in 2023 and properties owned by NMF. Distribution of average rents in Greater Tokyo area (Note 1) Properties with a standard floor area of 200 tsubo or more in 3 central wards Many of them are properties with rent of 20,000 yen or lower, or leased as a whole building as head office function (tsubo) 40,000 Ratio of properties at 20,000 yen/tsubo or lower. 30,000 20,000 10,000 Approx. 60% Main rent range for new large- scale properties (assumed) Shinjuku Nomura Building PMO 0 I ~15,000 ~20,000 ~25,000 ~30,000 ~35,000 ~40,000 40,001~ Ratio of properties by standard floor area in Greater Tokyo area (Note 2) 65% of properties have a standard floor area of less than 200 tsubo Less than 100 tsubo 27% 200 tsubo or more 35% 100 tsubo to less than 200 tsubo 38% NMF Takebashi Building Chiyoda-ku NMF Kayabacho Kojimachi Millennium Building Garden Secom Medical Building о NMF Aoyama 1- chome Building Minato-ku NEC Head Office Building Chuo-ku Harumi Island Triton Square Office Towers Y & Z NMF Shiba Building Avg. rent of 25,000 yen or lower Avg. rent of 20,000 yen or lower ○ Properties leased as a whole building (rent not disclosed) (Note 1) Total leasable areas shown are based on average price per tsubo ranges of owned properties excluding properties leased as a whole building. (Note 2) Calculated based on the ratio of number of properties. 15#16Internal Growth Management Status~ Office Office sector strength: Property management capabilities of the Nomura Real Estate Group Management capabilities of the Nomura Real Estate Group (Asset management) NOMURA REAL ESTATE ASSET MANAGEMENT (Property management) > Solutions capabilities based on size of operating floor area and abundance of office types • Total office operating floor area: About 600,000 tsubo (Note 1) Wide range of office types, including H¹T (shared satellite offices), H1O (small, high quality offices), PMO, and large offices (Shinjuku Nomura Building, etc.) Leasing capabilities through a system of direct sales to tenants or through strong relations with brokers NOMURA REAL ESTATE DEVELOPMENT NOMURA REAL ESTATE PARTNERS MASTER FUND Nomura Real Estate Master Fund, Inc. Total management combining the office management capabilities and know-how of the Nomura Real Estate Group • Nomura Real Estate building sales team: 33 members (Note 2) Percentage of leases contracted through direct sales during second half of fiscal year ended March 31, 2022: About 40% Ability to capture tenant needs Track record of developing new concept products from (Note 3) an understanding of potential needs • • Medium-sized, high grade offices: PMO (Developed buildings (including planned): 69 buildings) Small, high quality offices: H'O (Developed buildings (including planned): 16 buildings) Shared satellite offices: H¹T (Members: 1,884 companies and about 184,000 people) pmo PREMIUM MIDSIZE OFFICE H¹O HUMAN FIRST OFFICE H'T HUMAN FIRST TIME (Note 1) Total figure combining the floor space of properties owned by Nomura Real Estate and Nomura Real Estate Partners and the floor space of buildings for which the two companies provide property management services. (Note 2) Number of people as of the end of the fiscal year ended March 31, 2022. (Note 3) Figures based on the financial results of Nomura Real Estate Holdings for the third quarter of the fiscal year ended March 31, 2022. 16#17Internal Growth Management Status~ Logistics Re-contracting at higher rents has continued, with early lease-up with significant rent increases achieved at Landport Hachioji II Re-contracted at a higher rent with tenants with expired leases <Tenant with expired lease during August 2022 FP> Leasing of sections where tenants moved out <August 2022 FP> Landport Atsugi: Approx. 9,000 tsubo (2 tenants) (Rent increase rate +1.3%) ⚫ Landport Hachioji II Approx. 10,000 tsubo Succeeded in backfilling all sections (Rent increase rate +17.8%) Changes in period-average occupancy rates Lease-up completed earlier than expected at Landport Hachioji II Breakdown of tenants with expired leases (rent basis) 9.5% 100.0% 100.0% 100.0% 100.0% 99.2% 99.3% In process of leasing Landport Atsugi Under discussion with the assumption of re-contracting 7.3% 7.3% (Approx. 5,400 tsubo) 5.8% Average occupancy rates since incorporation 99.5% (Based on results) Contracts signed Nil Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Aug-22 Feb-23 Aug-23 Feb-24 Aug-24 17#18Internal Growth ~Management Status~ Logistics <Landport Hachioji II> Fully demonstrated the management capabilities of the Nomura Real Estate Group and successfully achieved early lease-up. Management capabilities of the Nomura Real Estate Group Comprehensive Group management system from asset management to building management NOMURA REAL ESTATE ASSET MANAGEMENT Asset management (AM) Logistics tenant management (LTM) *Specialized in tenant management NOMURA REAL ESTATE DEVELOPMENT NOMURA REAL ESTATE PARTNERS Property management (PM) Building management (BM) Held regular meetings with approx. 800 key target customers (at least once per half year) Implemented various sales methods, such as door-to-door sales that are strategically limited to certain areas and sectors Built strong relations with existing tenants through monthly meetings Optimized construction works, contractors, and processes based on collaboration between three companies 1. Through regular meetings, grasped the needs of key target customers at an early stage 2. Through discussions with tenants moving out, gained agreement on leaving air-conditioning systems that are advantageous for tenant recruitment 3. Due to good relations with tenants moving out, gained their cooperation, such as in preliminary inspections and initiation of move-in work before they moved out 4. Shortened and facilitated the entire work schedule from move-out and multi-functionalization through to move-in Succeeded in early backfilling of a total of 10,000 tsubo . Avg. period of vacancy 1.1 months (no period of vacancy for approx. half) • Rent increase rate +17.8% 18#19Internal Growth Management Status~ Logistics Good marketability, based on location advantages and advanced features, has supported stable performance. Logistics portfolio map (Greater Tokyo area) Logistics portfolio is generally distributed along National Route 16 and the Tokyo Outer Ring Road, which are areas of solid demand Ratio of advanced logistics facilities (Note) (acquisition price base) More than 90% of owned properties correspond to advanced logistics facilities more. Tohoku Expressway Kan-Etsu Expressway Kawagoe IC Hachioji JCT Chuo Expressway Atsugi IC Tomel Expressway Joban Expressway Kashiwa IC City Expressway Tokyo Gaikan Expressway Narita Airport Higashi-kanntou sway National Route 16 +Haneda Airport Landport series Others Advanced logistics facilities More than 90% of total Landport series 76.5% (Note) Properties with total floor space of 10,000 m 2 or more, distance between pillars of 10 m or more, ceiling height of 5.5 m or more for the majority of floors, and floor weight capacity of 1.5 t/m² or 192 19#20Internal Growth Management Status~ Residential Occupancy rates exceeded the level for the same month of the previous year throughout the period, with rent revenues and key money also continuing to increase Changes in occupancy rates Results comparison (year-on-year basis) 97.8% 97.5% 96.9% 96.5% 96.5% 97.3% 95.7% 96.1% Rent revenues (millions of yen) No. of months for key money Feb.-21 6,351 0.54 months 96.1% 95.9% 95.8% Feb.-22 95.6% 6,360 0.54 months Level before COVID-19 (Avg. for 2017 to 2019) 2021 2022 Aug.-21 6,380 0.59 months Aug. 22 6,641 0.63 months Mar. Apr. May. Jun. Amount of change in monthly rent at move-ins and move-outs (Thousands of yen) 4.5% 4.3% Amount of change in monthly rent Rate of change in monthly rent Jul. Aug. Rate of change in monthly rent at renewals Amount of change (Thousands of yen) in monthly rent 855 832 681 Rate of change in *monthly rent 2.0% 4,617 5,010 488 0.4% 0.4% 0.4% 0.4% 2,426 256 261 (556) (3,220) (2,424) 0.2% 0.1% -0.4% -1.7% -2.6% Feb-22 Feb-20 Aug-20 Feb-21 Aug-21 Aug-22 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 (Note) The figures in "Amount of change in monthly rent at move-ins and move-outs" and "Rate of change in monthly rent at renewals" include results of move-ins and move-outs and renewals for Kojimachi Millennium Garden (Residential Building). 20#21Internal Growth Management Status~ Residential Achieved performance exceeding market recovery due to the accumulation of improvements to management amid the COVID-19 pandemic Changes in period average occupancy rate and average contracted rent index (Note 1) for single type properties (Note 2) in 5 central wards Occupancy rate 98.0% Sluggish occupancy rate & decline in contracted rent Considered and implemented various improvements to management (shown on the right) Enhanced operational capabilities Future Aim for greater profits than the levels prior to COVID-19 through market recovery x enhanced management capabilities Examples of t improvements to management ①Facilitation of leasing Newly established KPIs for weekly results • Started soliciting applications at appropriate rent levels, utilizing contracted rent DB Increased frequency of condition revision property managing mtg (all properties every week) • Integrated systems with brokers (immediate reflection of condition revisions) . Enhanced efficiency of integration of asset 98.4% 95.8% 95.4% 95.7% 97.6% (preliminary value) 94.8% Contracted rent 100.0 Substantial increase in occupancy rate management/property management info through IT promotion 2 Advertisement-related Clarified rules for using paper media in light of cost- effectiveness Reviewed pictures posted on web media in light of customer reactions 98.3 102.3 94.4 91.7 92.0 Slight reversal of contracted rent as well Other Improved the yield rate by adopting the guarantee company's new plan Feb. 20 Aug. 20 Feb. 21 Aug. 21 Feb. 22 Aug. 22 Sep 30, 2022 • Promoted surface renovation by packaging works 【 Future policy and forecast] 【 Future policy and forecast 】 Continue to focus on operations with high occupancy rates to maximize profits. Although rents are expected to remain flat, aim for rent increase while monitoring the state of the market. (Period average occupancy rate for Aug 2022 FP: 96.8% ⇒ Expected rate for Feb 2023 FP: 96.8% *Rate for Feb 2022: 96.2%) (Note 1) The rate of change in the average contracted rent (from the previous period) was calculated for overall properties based on the change rates (from the previous period) for individual properties, and then the contracted rent for each period was converted into an index, with the rent level for Feb 2020 FP set at 100. (Note 2) Properties with average area per dwelling of less than 30 m². 21#22Internal Growth ~Management Status~ Retail Captured the demand for store openings, which are starting to show a recovery trend, and the period- end occupancy rate of facilities located near stations has reversed, exceeding 95%. • Sales status for each facility type Sales of facilities located near stations have also been on a recovery trend since the lifting of the quasi-state of emergency in Mar. 2022 The 7th wave of COVID-19 infections that started from Jul. 2022 has only a limited impact Rents linked to sales are very limited as the percentage of fixed rents across the overall retail sector is 97.0% (Note 2) <Sales status (change from same month of 2019)> Properties Retail Facilities Year 2022 (change from the results of 2019) Major Kinds Tenant Mar Apr (Residential Areas) (Note 1) Recipe SHIMOKITA Residential Areas Near May 99% 103% 102% Jun Jul Aug Food supermarket 106% 107% 97% Retail Retail 89% 89% 91% 87% 81% 82% Stations Services Restaurant Near 46% 59% 61% 60% 77% 67% Retail Stations Services Near Universal CityWalk Osaka 74% 72% 85% 81% 86% 82% Stations Restaurant Retail GEMS Near Stations 51% 73% 77% 83% 68% 62% Restaurant NORBESA Changes in period-end occupancy rate The entire retail Facilities Retail facilities(NearStations) 99.2% 99.5% 98.8% 97.9% 97.8% 98.5% 99.0% 96.9% 98.4% 97.6% 96.3% 95.4% 93.7% 93.3% Reversal Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 (Forecast) • New leasing results (facilities located near stations) No. of leasing cases for Aug 2022 FP 13 cases (Services: 2, retail: 1, restaurants: 10) Strengthened branding of GEMS through various measures GEMSX "Chandon Garden Spritz" Regional revitalization fair Support for tenants' talent recruitment CHANDON GARDEN SPRITZ (Note 1) Tenants for two properties whose sales since September 2019 can be ascertained are included. (Note 2) Calculated based on rents in February 2020 FP before the COVID-19 pandemic. 222 22#23Internal Growth ~Management Status~ Retail Future recovery and improvement of profitability is expected for Universal CityWalk Osaka. Changes in sales of Universal CityWalk Osaka 100.0 80.0 60.0 40.0 20.0 Steadily recovering 0.0 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Forecast Increase in No. of visitors to USJ Opening of new areas in USJ in 2024 • Osaka's hosting of the World Expo in 2025 • Enhanced management capabilities Strengthen collaboration with USJ Review facility concept and promote enhancement of the park areas' experience value together with USJ Aim for performance that exceeds the level prior to COVID-19 *Data calculated with sales for Feb 2020 FP set at 100 Management by a retail-focused property management company within the sponsor group Nomura Real Estate Retail Properties Co., Ltd. ■Facility operations Has a history of more than 50 years from GEO AKAMATSU CO., LTD., the predecessor company, and has been expanding development consulting business since the early days of retail facilities in Japan Ranked first among retail-focused PM companies in Japan in terms of area entrusted* [Floor area managed by PM] 2,500,000 m or more [Leasing results / brokerage results] 763 cases * Results over the past four years [Number of tenants listed] Over 4,000 companies Source: Monthly Property Management, November 2021 I Development consulting • Extensive results in new developments and renewals with over 500 cases 【Private development] MILKISSIMO BAR GELATERIA & CREPE Maker's Pier: Nagoya City, Aichi From planning to retail environment design and tenant leasing [Redevelopment and urban renewal] abasse TAKATA: (Reconstruction project for city centers of Rikuzentakata City) Basic retail plan, retail environment plan as well as management and operation plan 23#244 Appraisal Valuation 24 14#25Appraisal Valuation Appraisal values increased for approximately 80% of properties, and unrealized gains grew to 218.2 billion yen (+¥24.6 billion period-to-period). Appraisal valuation by sector Period-to-period analysis (Note 1) Feb.2022 Fiscal Period End Aug.2022 Fiscal Period End CAP Feb.2022 Aug.2022 Number of Appraisal Value Unrealized Number of Gain(loss) Appraisal Value Unrealized Decrease 218 249 Gain(loss) Properties Properties (\mln) (\mln) (\mln) (\mln) Flat 78 48 Office 67 543,030 66,944 68 559,170 78,127 Increase 0 Retail 50 200,906 24,440 49 194,973 23,284 Logistics 23 270,460 65,779 23 278,090 74,293 Appraisal Value Feb.2022 Aug.2022 Increase 214 237 Residential 155 226,582 36,248 157 241,465 42,272 Hotels 2 6,250 -98 2 6,260 -60 Flat 50 37 Other 1 5,450 313 1 5,460 323 Decrease 33 23 Total 298 1,252,678 193,628 300 1,285,418 218,241 (Note 1) Excluding acquisitions and dispositions during the period Amount of change in unrealized gain and rate of change in unrealized gain Change in weighted average cap rates by sector (Note2) (\mln) 350,000 Office Retail (%) 4.6 Logistics Residential Average 20.5% 300,000 4.4 4.4 18.3% 4.4 16.2% 250,000 14.5% 14.9% 13.9% 4.2 4.1 IIIIII 200,000 4.0 4.0 4.0 4.1 4.1 4.1 150,000 4.0 4.0 3.9 3.8 3.9 100,000 3.6 50,000 3.7 3.6 0 3.4 Feb-20 Aug-20 Feb-21 Feb-20 Aug-21 Feb-22 Aug-22 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 (Note2) The figures are weighted averaged a direct capitalization rate of each property (excluding land) by capitalization approach price. 25#265 Finance 26#27Finance Financing Status~ Continued to build a stable financial base and borrowed using first NMF green loans. Refinancing during Aug 2022 FP Repayment Overview (Note 1) Total amount of repayment Average interest rate Average remaining duration Refinancing Overview (Note2) Total amount of ¥24,980mln ¥24,730mln 0.92% refinancing Average interest rate 0.69% Average remaining 6.7years 7.5years Including ¥2.5 billion in green loans duration Interest-bearing debt at the end of Aug 2022 FP Scheduled repayment during Feb 2023 FP Scheduled Repayment (Note3) Total amount of repayment Average interest rate Average remaining duration ¥33,550mln 0.70% 6.9years Feb.2020 (9th FP) Total Interest-bearing debt Average remaining duration Average interest rate ¥510,727 million Aug.2020 (10th FP) ¥517,884 million Feb.2021 (11th FP) ¥517,841 million Aug.2021 (12th FP) ¥517,798 million Feb.2022 (13th FP) ¥517,756 million Aug.2022 (14th FP) ¥517,463 million 4.82 years 4.97 years 4.97 years 4.92 years 4.88 years 4.74 years 0.82 % 0.76 % 0.74 % 0.71 % 0.68 % 0.67 % Ratio of long-term debt 87.1 % 88.2 % 88.7 % 89.4 % 88.7 % 87.5 % Ratio of fixed-rate debt 95.6 % 95.7 % 95.7 % 95.7 % 95.7 % 95.7 % LTV 42.8 % 43.2 % 43.3 % 43.4 % 43.6 % 43.6 % Diversified maturity of repayment at the end of Aug 2022 FP (\ Min) 1.06% 1.03% 0.99% 0.93% 0.90% 0.76% 0.74% 50,000 0.70% 0.65% 0.54% 0.59% 0.58% 0.66% 0.59% 0.57% 0.62% 0.63% 0.68% 0.57% 0.61% 0.51% 0.56% 40,000 30,000 20,000 10,000 0 23/2 23/8 24/2 24/8 25/2 25/8 26/2 26/8 27/2 27/8 28/2 28/8 29/2 29/8 30/2 30/8 31/2 31/8 (Note 1) Average remaining duration is it at the time of borrowing and average interest rate is weighted average interest rate at the time of repayment. Excluding ¥42.8 million in contractual repayment. (Note2) Average interest rate and Average remaining duration are those at the time of refinancing. (Note3) Average remaining duration is it at the time of borrowing and average interest rate is weighted average interest rate as of the end of August 2022. Excluding ¥42.8 million in contractual repayment. ■Debt ■Investment Corporation Bond Average Interest Rate 32/2 32/8 38/8 40/2 (FP) 27#28Finance Diversification of Interest-bearing Debt Procurement~ Status of Interest-bearing Debt Corporate Bonds Amount Total Interest-bearing Debt ¥517,463 mln Name Issued (\mln) Annual Coupon (%) Issue Date Maturity Period Borrowings ¥485,463 mln NMF 3,000 0.87 2014/10/30 2024/10/30 Unsecured Bonds No.1 Investment Corporation Bonds ¥32,000 mln Former NOF 6,000 1.02 2014/11/25 2024/11/25 Unsecured Bonds No.10 NMF 2,000 0.59 2017/11/16 2027/11/16 Unsecured Bonds No.2 Diversification of Lenders 15.1% Former NOF 4,500 2.90 2007/3/19 2028/3/17 Unsecured Bonds No.7 NMF Unsecured Bonds No.4 3,000 0.53 2019/9/20 2029/9/20 26.0% (Green Bonds) 1.7% NMF 2.5% Unsecured Bonds No.6 7,000 0.54 2020/8/14 2030/8/14 2.5% Financial (Green Bonds) 3.2% Institutions NMF 1,500 1.03 2018/5/23 2038/5/21 3.3% 33 companies Unsecured Bonds No.3 NMF 5,000 0.90 2019/9/20 2039/9/20 Unsecured Bonds No.5 7.6% 16.5% 9.8% 11.7% Ratings ■ MUFG Bank, Ltd. ■ Sumitomo Mitsui Trust Bank, Limited ■ Development Bank of Japan Inc. ■ The Norinchukin Bank ■THE BANK OF FUKUOKA, LTD. ■ Others ■ Sumitomo Mitsui Banking Corporation ■ Mizuho Bank, Ltd. ■ Mizuho Trust & Banking Co., Ltd. ■ Resona Bank, Limited ■The Nomura Trust and Banking, Co., Ltd. Credit rating agency Japan Credit Rating Agency, Ltd. (JCR) Rating and Investment Information, Inc. (R&I) Rating description Long-term issuer rating: AA Issuer rating: AA- 28#296 Earnings Forecast 29 29#30Assumptions for Earning Forecasts for Feb. 2023 (15th) FP / Aug. 2023 (16th) FP The impact of increases in electricity expenses, etc. is expected to be mitigated through internal growth, with gains on sales expected to lead to increased earnings. 15th FP: ¥3,312 per unit (¥23 higher than forecast) / 16th FP: ¥3,261 per unit Main factors in change of DPU (\/unit) Feb. 2023 (15th) Feb. 2023 FP Acquisition PROUD FLAT Nezu Yanaka Disposition NRE Higashi-nihonbashi Building (50%), 8 residential properties Aug. 2023 FP Acquisition: - Disposition: NRE Higashi-nihonbashi Building (50%) Aug. 2023 (16th) Increased Absence of extraordinary loss distribution factors Decreased distribution factors Contributions to internal Distributions from gain reserves on sales (natural disasters) +10 Decrease in asset management fees +5 Decrease in interest expenses +3 Increase in rent and Others -4 common area charges +37 Increase in utility expenses received +51 Absence of cancellation October 18, 2022 Reported gain on sales 225 3,312 (Note 2) received Increase in rent and common area charges Increase in utility expenses +40 +10 (Forecast from 6 penalty fees, etc. -26 3,300 of 8 residential properties months prior: 3,289 yen) Increase in cancellation penalty fees, etc. +17 65 61 -81 103 103 Increase in interest expenses 3,261 -6 67 -66 13 -19 69 -12 3,235 (Note 1) Increase in utility expenses paid -90 Impact of property acquisitions +2 (PROUD FLAT Nezu Increase in utility expenses paid -28 Impact of property Decrease in property management fees +15 Yanaka plus 3 other properties) Increase in taxes and acquisition +4 Decrease in repair Impact of property public dues -18 (PROUD FLAT Nezu expenses +8 dispositions -21 Increases in depreciation Yanaka) (Ichibancho stear) Others -14 (NRE Higashi-nihonbashi Building) 3,209 and amortization Others -16 Impact of property -4 dispositions -16 3,192 (NRE Higashi-nihonbashi (8 residential properties) Building) (8 residential properties) Impact of deterioration in electricity expenses, etc. -38 Impact of deterioration in electricity expenses, etc. -21 Rental business Aug. 2022 FP DPU result Rent revenues (Portfolio properties) Others expenses (Portfolio properties) External growth (Note 3) Gain on sales Feb. 2023 FP DPU forecasts Rent revenues (Portfolio properties) Rental business expenses (Portfolio properties) Others External growth (Note 3) Aug. 2023 FP DPU forecasts (Note 1) In the earnings forecasts on this page, the distributions per unit excluding gains on sales (virtual distributions) for each period show the amounts excluding the increase in asset management fees II, related to gains on sales. Therefore, the virtual distributions for the fiscal period ending August 2022 on this page differ from the figures shown on page 4. (Note 2) To avoid taxes in the fiscal period ending February 2023, an amount exceeding 3,300 yen will be distributed due to gains on sales. (Note 3) Includes the impact of property acquisitions and sales during the last fiscal period. 30#31Assumptions for Earning Forecasts for Feb. 2023 (15th) FP / Aug. 2023 (16th) FP Main factors accounting for differences between the 14th results and the 15th forecasts (\mln) (\mln) Ended Feb. 28,2022 Ended Ended Operating Revenue 985 Aug. 31,2022 Differences (13th FP) (14th FP) Result (A) Forecasts (B) (B)-(A) Feb. 28,2023 (15th FP) Forecasts (C) Differences Rental revenues 14 Operating Revenue 39,022 40,008 985 38,923 (C)-(B) -1,084 Rent and common area charges of portfolio properties Impact of property acquisition and disposition 174 -159 Rental revenues 35,249 35,264 14 35,349 85 Other rental revenues Other rental revenues 42 92 3,015 3,107 92 Gain on sales of real estate 757 1,636 878 3,226 347 119 Increase in utility expenses received 234 -1,289 Operating Expense 23,437 23,768 330 23,955 187 Reduction of cancellation penalty fee, etc. -142 Rental Business Expenses 16,652 16,940 288 17,199 258 Gain on sales of real estate 878 Repair Expenses 1,326 1,294 -32 1,332 38 Operating Expense 330 Tax and Public Dues 3,313 3,286 -26 3,362 75 Depreciation and Amortization 5,738 5,671 -67 5,725 54 Rental Business Expenses 288 Others 6,274 6,689 415 6,779 90 Increase in utility expenses paid 416 Asset management fees 3,460 3,480 19 3,408 -71 Amortization of goodwill 2,622 2,622 2,622 Decrease in property management fees -84 Other operating expenses 703 724 21 724 0 Decrease in repair expenses -32 Operating profit 15,584 16,240 655 14,968 -1,271 Decrease in other expenses -11 Non-operating revenues 3 -3 Non-operating expenses 2,195 2,180 -15 2,211 30 Asset management fees/Other operating expenses 41 Interest Expenses and other financial costs 2,185 2,170 -15 2,200 30 Non-operating expenses -15 Other non-operating expenses 10 10 0 10 Ordinary income 13,392 14,059 667 12,757 -1,302 Interest expenses and other financial costs -15 Extraordinary gain and loss 109 -109 Extraordinary gain and loss -109 Net income 13,499 14,058 559 12,756 -1,302 (Net income excluding realized gain) (12,741) (12,422) -319 (12,408) (-13) Absence of extraordinary gain and loss in 14th FP -109 Net income 558 Distribution of Earnings (a) 13,499 14,037 537 12,749 Distribution in excess of net earnings (b) 2,060 1,579 -480 Total distributions (a)+(b) 15,560 15,616 56 2,626 15,376 -1,287 1,046 15th FP's Reserve of Internal Revenues (Portion of gain on sales of real estate, etc.) -1,061 -240 Internal reserves 561 (Total Internal reserves) (2,952) 1,061 (4,014) 500 -1,061 (1,061) (4,014) DPU(¥) 3,300 3,312 12 Distributions of earnings per unit (¥) 2,863 2,977 114 3,261 2,704 -51 Main factors accounting for differences between the 15th forecasts and the 16th forecasts (\mln) -273 Distributions in excess of retained Operating Revenue -1,084 earnings per unit [allowance for 403 331 -72 373 42 adjustment of temporary differences] (¥) Rental revenues 85 Other rental revenues 119 Distributions in excess of retained earnings per unit [other distributions in excess of net earnings] (¥) Total assets NOI Interest-bearing debt LTV Market Capitalization Gain on sales of real estate -1,289 34 4 -30 184 180 Operating Expense 187 1,187,581 517,463 43.6% 1,184,825 517,420 43.7% -2,756 -42 0.1% 1,181,271 517,377 43.8% -3,553 Rental Business Expenses 258 -42 0.1% Non-operating expenses 30 802,527 Interest Expenses and other financial costs 30 27,350 27,101 -248 27,102 0 Net income -1,302 FFO 21,001 20,723 -277 20,765 41 31#327 ESG Measures 32 32#33ESG Measures ~Track Record of Activities~ Active promotion and continuation of a wide range of ESG initiatives since 2015 Asset management company initiatives and achievements NMF initiatives and achievements 2015 2020 2021 2022 2016 Started participation in GRESB Real Estate Assessment December 2015 Established Sustainability Policy December 2017 Signatory to Principles for Responsible Investment (PRI) Signatory of PRI February 2019 Set ESG materiality issues (Materiality) Set J-REIT-first long-term targets [E] • Raised proportion of "green" properties in investment portfolio • Implemented climate change response • Implemented water resource response [S] • Ensured safety and security of tenants and improved user comfort • Created a workplace environment in which everyone is treated fairly and empowered to find his/her job rewarding ⚫ Human resource development and talent management [G] •Enhanced governance • Ensured compliance and risk management . • Stakeholder engagement and timely and appropriate information disclosure Principles for Responsible Investment 1 2 October 2018 Participated in Japan Climate Initiative (JCI) JAPAN CLIMATE INITIATIVE SUSTAINABLE GOALS DEVELOPMENT 17 GOALS TO TRANSFORM OUR WORLD 3 910 11 12 со AB 13 14 15 16 17 SUSTAINABLE DEVELOPMENT GOALS February 26, 2021 First disclosure by a J-REIT of scenario analysis and financial impact (qualitative assessment) based on the recommendation of the Task Force on Climate-related Financial Disclosures (TCFD) January 30, 2020 First J-REIT certified and registered for EcoAction 21 program, an Environmental Management System (EMS) こちは、地域と 恋をした新る 環境に Ca です。 エコアクション21 September 20, 2019 Issued first NMF green bonds March 5, 2020 October 18, 2022 2050 Carbon Neutral Target Accelerated implementation of measures to achieve carbon neutrality in order to achieve the 1.5°C scenario October 2022 Received Sector Leader and 5 Star assessments in Asia and global categories (listed) under the GRESB Real Estate Assessment Received Minister of the Environment Award (the Most Excellent Efforts) from Principles for Financial Action for the 21st Century October 2019 Established a dedicated ESG department PFA21 Principles for Financial Action for the 21st Century GRESB REAL ESTATE sector leader 2022 GRESB ✶✶✶✶✶2022 August 26, 2022 First green loan borrowing by the Fund December 13, 2021 Received the 2021 Climate Change Action Environment Minister's Commendation 令和3年度 We can Save the Earth 気候変動アクション 環境大臣表彰 Minister of the Environment July 14, 2020 Signatory to Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) TCFD TASK FORCE ON CLIMATE-RELATED: FINANCIAL DISCLOSURES 33#34ESG Measures (E: Environment) 2050 Carbon neutral Target • NMF's Approach to and Main Initiatives Addressing Climate Change Creating a sustainable society is indispensable for NMF's growth Set long-term targets by identifying material issues Ascertain and disclose climate change related risks and opportunities through TCFD scenario analysis 2050 Carbon Neutral Target for Achieving the 1.5°C Scenario Main Initiatives for Achieving Carbon Neutrality Actively invest in sponsor properties with high energy efficiency Increase energy conservation by switching to LEDs, reviewing A/C equipment capacity, and other measures (including shifting to ZEB) ➤ Switch to electricity derived from renewable energy and use solar power and other renewable energy Purchase non-fossil fuel certificates Trade carbon offsets Issues for Future Consideration • Closely examine the results of analysis for TCFD quantitative disclosures • Formulate an operating strategy based on the result of the above analysis Green Certification Water Use Greenhouse Gas Environmental Indicators [Target] Reduce 40% by FY2030 (compared with 2016) 0.0% -10.0% -20.0% -30.0% GHG(Intensity) -40.0% Target -40.0% -40.0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 [Target] Reduce 10% by FY2030 (compared with 2016) 0.0% -10.0% -20.0% -30.0% -40.0% Water Use (Intensity) FY2030 Target -10.0% -32.0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2030 [Target] Raise the ratio to 70% by FY2030 (total floor area basis) 80.0% Green Certification (With three stars or more or equivalent) Target 70.0% 70.0% 60.0% 50.0% 40.0% FY2017 FY2018 FY2019 FY2020 FY2021 56.1% FY2030 (Note) "Green Certification" refers to either DBJ Green Building Certification, BELS Certification or CASBEE for Real Estate. "Green Certification (With three stars or more or equivalent)" refers to three stars or more for DBJ Green Building Certification, three stars or more for BELS Certification, or B+ or higher for CASBEE for Real Estate. 34#35ESG Measures (S: Society) Regional Development Contribution Initiatives "Minna Shokudo" (Food for All) event and the Local Creation Fair held by GEMS "Minna Shokudo" (Food for All) held GEMS stores created original ehomaki sushi rolls and chirashi sushi and distributed them free of charge to a total of 600 families to support childcare and food education by families and bring smiles to the faces of children Each store offered a different kind of ehomaki, and the event also served as PR Phase 1: Setsubun Ehomaki Phase 2: Chirashi sushi on Children's Day 野村不動産 2 Nagasaki Fair and Kyoto Food Fair held • Local specialty products were purchased and provided to tenants according to tenant requests to support regional development, take measures against food loss, and support tenant sales Phase 1: Nagasaki Fair 食べて地方創生! GEMS 長崎県 GEMS × 長崎県フェアー Phase 2: Kyoto Food Fair GEMS X KYOTO FOOD FAIR 食べて地方創生! GEMS × 京都フェアー GEMS × みんな 食堂 Asset management company regularly engages in volunteerism Main Programs July 2021 Made decorations for children's facilities October 2021 Made Christmas cards for children in the hospital > Christmas Card 201 ジェムズで 飲んで食べて 長崎を元気に! 生産者さんへの応援、そして うもの。大いに食べていただくことが、 ニューをお客様に味わっていただくとい 魅力あふれる食材を使ったメ 今回のフェアーは、長崎県と連携し へとつながります。 創生 Christmas メリー Christma merrs Christmas メリークリスマ Mary Coire December 2021 Made picture postcards for senior facilities 1808. June & September 2022 Volunteers made flower beds at Yoyogi Park Ongoing Cleanup in the area of the office (Nishishinjuku areas) ジェムズで 飲んで食べて 京都を元気に! SET MA REACT 35#36ESG Measures (S: Society) Measures to improve tenant satisfaction Supporting tenant recruiting of human resources at an owned property (GEMS) Support for tenant human resource recruiting Support for online recruiting in response to a shortage of human resources (part-time employees) More than 700 people applied and about 20 were hired Introduction of media service to prevent congestion in rests rooms at NMF Aoyama 1-chome Building & others Rest room congestion prevention media service (AirKnock Ads) Congestion status and use times are displayed to alleviate congestion and improve comfort for tenants 憧れの お店で働く 野村不動産プロデュース あしたをつなぐ GEMS 野村不動産グループ BLACHSTURES 「ぶつがとうございます 6000 > Offered a variety of services for residents at owned residential properties Cook Pad Mart --- Pick up fresh foodstuff from the dedicated refrigerator installed in the common area of the condominium Bicycle sharing --- Improves transportation convenience and addresses lack of exercise from working from home. --- Mobile stores Provide quality ingredients, meals, etc. close to home to help residents enhance their time at home. mart D FLAT SAN E 129 36#37ESG Measures (G: Governance) Workable sustainability promotion system The Asset Management Company has established the following systems to and promote measures based on the Sustainability Policy in a continuous and systematic manner. Board of Directors: Meets once a year, in principle Approval of policies and rules, etc., monitoring and supervision of the status of sustainability promotion Investment Committee: Meets twice a year (decisions on goals and measures), in principle Decision-making body for sustainability (goals, measures, etc.) Sustainability Promotion Committee: Meets once a quarter, in principle Formulates sustainability goals and measures and monitors achievement status Chief Sustainability Officer: Involved in decision-making at the Investment Committee as the chief officer for sustainability and reports to the Board of Directors at least once a year based on the sustainability promotion rules. Sustainability Operating Officer: Responsible for the execution of sustainability promotion, the Sustainability Operating Officer convenes the Sustainability Promotion Committee, submits matters for discussion and reports to the Investment Committee. Compliance system for carrying out business transaction with stakeholders Respective department(s) initiates proposal Compliance Officer Compliance Committee Compliance Officer •Verifies status of compliance with laws and regulations • Verifies whether other compliance concerns apply Compliance Committee Approves major business transactions carried out with stakeholders .Deliberates on status of business transactions carried out between stakeholders Committee members: Compliance Officer (Chairperson). experts from outside the company Resolutions: Upon affirmation by no less than two-thirds of voting members Board of Directors Sustainability Policies Regulation of Sustainability Promotion Environmental policies = Operating Procedure Reporting Chief Sustainability Offficer Chief Strategy Officer (Director) Chair Investment Committee : President and Executive Officer Memers: Chief Strategy Officer, other Executive Officers, Compliance Officer, and any other person appointed by the chair Decision Decision of sustainability targets and mea sures Assigned Fund (NMF) Committee Chair (Head of NMF Investment Management Group) = Sustainability Operating Officer Sustainability Promotion Committee Committee members • Committee Chair (Sustainability Operating Officer) Fund Management Dept. •Asset Management Dept. ⚫ Investment Management Planning Department ESG & Engineering Service • Corporate Planning Dept. Finance & Accounting Dept. Discussion agenda ⚫ Formulation of annual and long-term targets and measures • Monitoring state of achievements Assigned Fund (excluding NMF) Committee Chair (Head of the Fund) = Sustainability Operating Officer Investment Committee • Real estate acquisition and transfer • Real estate leasing Prior consent of investment corporations Board of Directors (investment corporation) Engage in exchange pertaining to the business transaction Investment Committee Makes decisions acting as the asset management Chair-person: President and CEO Committee members: Chief Strategy Officer, other executive officers 1, Compliance Officer Resolutions: Upon consensus of all voting mem- bers⭑2 Board of Directors Furnishes consent for business transactions with asset management company stakeholder or other such party Committee members: Executive Officer (Chairperson), Supervisory Officers (currently, Resolutions: Upon affirmation by a majority of voting mem- bers *1 This does not include the Fund Managers or Executive Officers concurrently serving as general managers of respective departments established within the NMF operations group. *2 Voting rights are possessed neither by Compliance Officers nor by Executive Officers in charge of administrative 37#38ESG Measures (Materiality) NMF's ESG materiality issues (Materiality) Materiality, Policy and Target Raising the proportion of "green" properties in our investment portfolio Policy and Target . ΚΡΙ Raise the ratio of properties acquired green certification (with three stars or more or equivalent to) to 70% by 2030. *Green certification (with three stars or more or equivalent to) refers to DBJ Green Building Certification (three stars or more) or BELS Certification (three stars or more), or CASBEE for Real Estate (B+ or higher) Ratio of green certification (with three stars or more or equivalent to) (Ratio of green certification) Envirom Countering climate change ⚫ Achieve 40% reduction in greenhouse gas (GHG) emissions per floor area (intensity) from our portfolio by 2030 compared with the 2016 level. ent Policy and Target . Achieve carbon neutrality by 2050 . ΚΡΙ GHG emissions per floor area (intensity) . ΚΡΙ Water use per floor area (intensity) Countering water resources Policy and Target Achieve 10% reduction in water use per floor area (intensity) in our portfolio by 2030 compared with the 2016 level. Ensuring the safety and security of tenants and improving user comfort Policy and Target Improve tenant satisfaction by conducting a regular survey of tenants' satisfaction, by carrying out property renewal and renovation aimed at accommodating diversifying social needs, by enhancing the content of tenant ΚΡΙ . Customer satisfaction survey results . Society Policy and Target . ΚΡΙ Creating a workplace environment in which everyone is treated fairly and empowered to find his/her job rewarding Enhance employee satisfaction via the creation of a sound working environment that ensures impartial evaluation, provides fair compensation, respects for fundamental rights and allows everyone to find his/her job rewarding. Average number of paid holidays taken Employee satisfaction survey results Human resource development and talent management Policy and Target ΚΡΙ Enhance employee satisfaction via the creation of a sound working environment that ensures impartial evaluation, provides fair compensation and allows everyone to find his/her job rewarding. Actual attendance results of employee training (Training hours per employee) Number of employees qualified or certified Enhancement of Governance Policy and Target Materiality, Policy and Target • Establish an effective sustainability promotion system through appropriate operation of PDCA cycle as well as a governance system which ensures impartiality and diversity of the directors. Promote investment management that prioritizes the unitholders' interest by aligning the interests of the unitholders, NMF and the Asset Management Company by introducing asset management fees linked to management performance. Aim to improve management performance through appropriate management based on the market research function of the Asset Management Company and selective investment backed by our own valuation method at the time of acquisition. NMF's outside director ratio NMF's female director ratio ΚΡΙ NMF's board of directors' meeting attendance ratio External evaluation of the sustainability promotion system Establishment of an effective internal control system Governan ce Policy and Target KPI . . Ensure legal compliance through raising awareness of compliance. Prevent risks to the soundness of management and business continuity through appropriate risk management such as elimination of conflicts of interest in transactions with interested parties. Ensure the effectiveness of internal control process through internal audits. Compliance training attendance rate (Target: 100%) Risk assessments frequency (Target: once a year) BCP training frequency (Target: once a year) Safety drill frequency utilizing safety confirmation system (Target: 4 times a year) Internal audit frequency (Target: once a year) Stakeholder engagement and timely and appropriate information disclosure Build solid relationships with and win the trust of all stakeholders by engaging in the timely, appropriate and proactive disclosure of financial/non-financial information and by maintaining constructive dialogue Policy and Target ΚΡΙ ESG rating assessment Number of IR meetings 38#39ESG Measures ~NMF's Initiatives~ GRESB GRESB REAL ESTATE sector leader 2022 GRESB ✰✰✰✰✰ 2022 GRESB Public Disclosure 2022 Real Estate Assessment Asia and global categories (listed) Sector Leader (highest assessment) 5 Star (highest assessment) Green Star: Highest assessment for seventh consecutive year "A" rating for public disclosure, the highest rating, for the sixth consecutive year DBJ Green Building Certification DBJ Green Building ESG Annual Report - PRONGE wwwwww NMF's ESG initiatives and activities for fiscal year as well as external environmental certifications acquired are introduced in the report. ESG Annual Report T 9.32 29 bine@nge c 7 MASTER FUNC BELS Certification BELS Building Housing Energy-efficiency Labeling System Certification and Registration for EcoAction 21 Program, Environmental Management System (EMS) in Japan The EcoAction 21 Certification/Registration Program is the certification and registration promoting environmental management based system by a third party for business operators on "EcoAction 21 Guidelines" formulated by Japan's Ministry of the Environment as part of its Environmental Management System. 私たちは、地域と地球 環境に た事業者 Ca です ®環境省 エコアクション21 認証番号 0012949 39#40ESG Measures Initiatives by Asset Management Company~ Principles for Responsible Investment(PRI) An international network of investors established in 2006 working to realize the Six Principles for the financial industry under the leadership of Kofi Annan who was then the UN Secretary General Support for TCFD ■TCFD refers to the "Task Force on Climate-related Financial Disclosures" launched by the Financial Stability Board ("FSB") for the purpose of discussing the disclosures of climate-related financial information and the responses by financial institutions. Signatory of: PRI TCFD Principles for Responsible Investment TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Principles for Financial Action for the 21st Century (PFA21) ■The principles were established in October 2011 as a guideline for financial institutions seeking to fulfil their roles and responsibilities in shaping a sustainable society, with the Ministry of Environment taking on the role of secretariat. PFA21 Principles for Financial Action for the 21st Century Participation in Japan Climate Initiative (JCI) I Japan Climate Initiative (JCI) is a network of various non-state actors such as companies, local governments, organizations and NGOs actively engaged in climate action. JAPAN CLIMATE INITIATIVE 40 40#41ESG Measures ~Disclosures based on the TCFD Recommendations~ Disclosed Climate-related financial information based on the TCFD Recommendations Disclosures based on the Task Force on Climate-related Financial Disclosures Based on Disclosure Items Recommended by the TCFD, which we expressed its support in July 2020, we disclosed information on financial impact based on multiple scenario analyzes as first time in J-REITS in addition to an overview of climate change risks and opportunities. TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Outline of Disclosure based on TCFD Recommendations Identify climate change-related risks and opportunities (Disclosure Items Recommended by the TCFD) Disclosure Item Governance Strategy Risk management Metrics and Targets Set three patterns of scenarios, 4° C scenario, 2° C scenario, and 1.5 ° C scenario, mainly referring to future climate forecasts published by the IEA and IPCC Analyze and verify financial impact for each identified risk and opportunity (World view of 2 °C scenario) Disclosure Details Organizational governance relating to climate-related risks and opportunities Actual and potential impacts from climate-related risks and opportunities on the organization's businesses, strategies, and financial planning The organization's climate-related risk identification, assessment, and management processes Metrics and targets used to assess and manage climate-related risks and opportunities (Identification of Climate Change Related Risks and Opportunities) Category Risk and Opportunity Factors Costs for energy-generating and energy-conserving buildings decrease as a result of stricter regulations on total building carbon emissions and energy conservation standards and advances in ZEB (net zero energy building) technologies Financial impacts (1) Costs for retrofitting (modification of existing buildings to increase energy efficiency) will be incurred (2) Lower utility expenses as Type Risk Opportunity a result of adoption of ZEB The use by banks of screening determination methods that take the environmental performance of buildings into consideration will spread, and financing amounts will increase substantially Investor Bank Government BANK AA (Financing) ⚫ Restrictions on total building emissions will be introduced and building energy conservation standards will be tightened ⚫ Subsidies for improving energy efficiency will be introduced Restrictions on emissions will be strengthened through carbon taxes and emissions trading (regulations) (Interest/repayment) Tenant NMF (Real estate leasing) & (Investment) (Distributions) ESG investment will become a main means of investment and demands for investment targets to disclose ESG information will grow The adoption of ZEB for new buildings will advance as a result of it being made mandatory and other means Transition Risks Policy Introduction of carbon taxes, introduction of emissions trading systems (3) Increased carbon tax burdens (4) Costs for purchase of renewable energy credits will be incurred Risk Markets Reputation Disclosure systems relating to building energy efficiency assessments expanded and made mandatory Changes in investment stances in conjunction with the increase of ESG investors Changes in financing determination by banks in accordance with responsible banking principles Increase in companies that seek carbon neutrality Selection of properties by companies and tenants with an emphasis on energy generation and energy conservation Selection of properties by companies and tenants with an emphasis on disaster preparedness (5) Certification and other costs will be incurred (6) Lower capital procurement costs as a result of green bonds, green loans, etc. (7) Higher occupancy rates at energy-generating and energy- conserving buildings (8) Lower occupancy rates at buildings with high disaster risks Opportunity (Rent) Tenants that emphasize energy creation and energy conservation Acute will increase substantially Physical Risks Sea level rise Chronic Increases in intense rain, storms and flooding, landslides, and high tides (9) Loss of sales opportunities due to building flooding (10) Increase in repair costs and casualty insurance premiums due to building flooding Risk 41#42ESG Measures Disclosures based on the TCFD Recommendations~ (Verification of financial impact based on scenario analysis) *Pale red and blue indicate a minor impact, and deep red and blue indicate a major Scope of Financial Impact Amount Transition Risks 4°C 2t 1.5°C Category Financial impacts Type 2030 (Mid) 2050 2030 (Long) (Mid) 2050 (Long) 2030 2050 (Mid) (Long) 1 Retrofitting expenses Risk Lower utility expenses as a result of ZEB Opportunity Policy Increased carbon tax burdens Risk Costs for purchase of renewable energy credits will be incurred Risk Certification and other costs will be incurred Risk Market Lower capital procurement costs as a result of green bonds, green loans, etc. Opportunity Higher occupancy rates at energy-generating and energy-conserving buildings Opportunity Reputation Lower occupancy rates at buildings with high disaster Risk risks Physical Risks Acutex Loss of sales opportunities due to building flooding Risk Increase in repair costs and 1 casualty insurance premiums due to building flooding Risk In light of the intent of the Paris Agreement, NMF set three patterns-a 4°C scenario, 2°C scenario, and 1.5°C scenario-as the assumed scenarios for scenario analysis. NMF verified the scope of the financial impacts from the identified risks and opportunities for each of the three scenario patterns. Impacts were verified at 2030 (medium-term outlook) and 2050 (long-term outlook) for each scenario. *The effects of chronic physical risks are likely to manifest after 2050, so they are excluded from the investigation of financial Impact amounts. 42 223#438 APPENDIX 43#44Changes in Various Indicators 5th FP 6th FP 7th FP Operating revenue Gain on sales of real estate Leasing NOI million yen 34,218 34,731 35,428 8th FP 36,617 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 36,927 37,577 38,064 37,519 million yen 587 685 37,520 162 39,022 757 million yen 23,583 24,475 24,677 25,859 26,357 27,268 27,573 27,008 26,995 27,350 NOI yield (acquisition price basis) % 5.1 5.1 5.1 5.1 5.2 5.2 5.2 5.1 5.0 5.0 NOI yield after depreciation (acquisition price basis) % 4.1 4.1 4.1 4.1 4.2 4.2 4.2 4.0 4.0 4.0 Implied cap rate % 4.4 4.3 4.4 3.9 4.2 4.8 4.4 4.2 4.5 4.2 Operating profit million yen 13,212 13,285 14,056 14,265 14,673 15,212 15,370 14,741 14,593 15,584 Net income million yen 10,714 10,709 11,560 11,690 12,188 12,799 13,016 12,434 12,377 13,499 Total distributions million yen 12,745 13,328 13,518 14,592 15,461 15,640 15,701 15,503 15,296 15,560 Distributions per unit yen/unit 3,047 3,084 3,128 3,209 3,279 3,317 3,330 3,288 3,244 3,300 Distributions of earnings yen/unit 2,624 2,478 2,623 2,571 2,585 2,714 2,761 2,637 2,625 2,863 Allowance for adjustment of temporary differences yen/unit 284 306 361 342 368 377 374 387 444 403 Other distributions in excess of net earnings yen/unit 139 300 144 296 326 226 195 264 175 34 FFO FFO per unit FFO Dividend payout ratio million yen 17,489 18,282 18,392 19,447 19,953 20,798 21,167 20,651 20,755 21,001 yen/unit % 4,181 4,230 4,255 4,276 4,231 4,410 4,489 4,379 4,401 4,453 72.9 72.9 73.5 75.0 77.5 75.2 74.2 75.1 73.7 74.1 CAPEX million yen 1,999 3,255 2,358 2,535 2,781 3,261 3,528 3,105 2,654 2,609 AFFO million yen 15,490 15,027 16,034 16,912 17,171 17,536 17,639 17,546 18,100 18,391 AFFO per unit yen/unit 3,703 3,477 3,710 3,719 3,641 3,719 3,740 3,721 3,838 3,900 AFFO Dividend payout ratio % EBITDA million yen 82.3 20,138 88.7 Total assets million yen 1,089,820 Interest-bearing debt million yen Net assets million yen 486,198 555,090 LTV % Net assets per unit (after deducting distributions) yen/unit 44.6 129,650 20,375 1,118,644 497,155 571,836 44.4 129,230 84.3 21,111 1,117,851 497,112 569,843 86.3 21,549 90.0 89.2 89.0 88.4 44.5 128,725 1,164,767 510,770 600,910 43.9 128,937 NAV per unit (after deducting distributions) ROA yen/unit 150,308 150,918 153,512 156,215 21,979 1,193,471 510,727 627,868 42.8 129,879 159,827 22,773 1,197,766 517,884 625,505 23,049 1,196,357 517,841 623,014 43.2 129,340 161,096 43.3 128,799 162,019 22,504 1,192,507 517,798 619,901 43.4 128,180 164,159 84.5 22,376 1,187,420 517,756 616,878 84.6 23,512 1,187,581 517,463 615,128 43.6 127,583 168,648 43.6 127,156 173,441 % 2.0 1.9 2.1 2.0 2.1 2.1 2.2 2.1 2.1 2.2 ROE Number of properties Total acquisition price Book Value Total % 3.9 3.8 4.1 4.0 4.0 4.1 4.2 4.0 4.0 4.3 properties 271 281 million yen million yen Appraisal Value Total Unrealized gain/loss million yen million yen 922,568 914,834 1,001,250 86,415 955,984 947,449 1,041,183 93,733 278 960,345 949,867 1,056,994 107,126 289 294 298 299 299 298 300 1,011,279 999,049 1,123,089 124,039 1,031,039 1,017,019 1,158,232 1,051,686 1,035,946 1,066,269 1,048,917 1,185,682 141,212 149,735 1,205,558 156,640 1,068,409 1,048,702 1,218,347 169,644 1,081,389 1,059,049 1,252,678 1,091,759 1,067,176 193,628 1,285,418 218,241 NOI yield = Annualized leasing NOI of properties owned at the end of the fiscal period (excluding properties sold during the period) / Acquisition price at the end of the period Implied cap rate= NOI (Market capitalization at the end of a given period + Interest-bearing debt - Cash and Bank deposits + Security deposits) *Annualized To annualize leasing NOI, the leasing NOI recorded for a given period for the properties owned at the beginning of the fiscal period is doubled while that recorded for each property acquired during that period is divided by the number of days said property has been owned and the result multiplied to approximate one year's NOI. FFO = Net income + Depreciation and amortization + Amortization of investment corporation bond issuing expenses + Amortization of goodwill+Impairment loss ± Gain(Loss) on sales of real estate ± Extraordinary gain(loss) +Merger expenses AFFO=FFO - Capital expenditures FFO Dividend payout ratio = Total distributions/FFO AFFO Dividend payout ratio = Total distributions /AFFO + Extraordinary gain(loss) + Impairment loss +Merger expenses EBITDA = Income before income taxes + (Interest expense + Investment corporation bonds interest) + Depreciation and amortization + Amortization of investment corporation bond issuing expenses + Amortization of goodwill Net assets per unit (after deducting distributions) = (Total net assets - Total distributions)/Total investment units issued NAV per unit (after deducting distributions) = {Net assets (after deducting distributions) + (Total appraisal value - Total book value)} / Total investment units issued ROA = Ordinary income / {(Total assets at beginning of period + Total assets at end of period)/2} x 100 *Annualized ROE = Net income / {(Total assets at beginning of period + Total assets at end of period)/2} x 100 *Annualized To annualize ROA and ROE, the values are divided by the number of days in the period and the results multiplied to approximate the values for one year. 44#45NOI Analysis by Sector Feb-22 Aug-22 Office Number of Property Acquisition Price (min) Ended Feb.28,2022(13th FP) Retail Feb-22 Aug-22 67 471,265 68 476,765 Number of Property Acquisition Price (min) 50 178,744 49 174,044 From Sep.1, 2021 To Feb.28, 2022 Ended Aug.31,2022(14th FP) From Mar.1, 2022 To Aug. 31, 2022 Differences Main factors accounting for differences Ended Feb.28,2022(13th FP) From Sep.1, 2021 To Feb.28, 2022 Ended Aug.31,2022 (14th FP) From Mar.1, 2022 To Aug.31, 2022 Differences Main factors accounting for differences Amount (\min) Amount (min) (min) Property related revenues Rental revenues 17,198 17,497 15,870 16,036 299 166 Profit/Loss From Existing Property Leasing Business Amount (\min) Amount (min) Profit/Loss From Existing -30 (min) -68 Property Leasing Business Property related revenues 6,336 6,272 -64 Main factors in the above Rental revenues 5,633 5,516 -117 Main factors in the above Other rental revenues 1,328 1,461 133 Rent & common expenses +96 property related expenses 7,569 7,880 310 • Increase in cancellation +26 Other rental revenues property related expenses 703 756 52 • Rent & common expenses +64 2,602 2,691 88 ⚫ Deterioration of utility +7 Property management costs 1,058 1,063 5 penalties, etc. Property management costs 269 272 2 payment balance Property management fees 347 381 34 ⚫ Deterioration of utility -79 Property management fees 129 143 13 • Increase in PM -17 Property and other taxes 1,746 1,802 55 payment balance Property and other taxes. 493 496 2 compensation Utility expenses 989 1,177 188 • Increase in taxes -63 Utility expenses 383 442 59 • Increase in repair expenses -16 Casualty insurance 29 30 1 • Increase in depreciation -62 • Increase in taxes -15 Casualty insurance 8 9 0 Repairs and maintenance 542 540 -2 ⚫ Other +14 ⚫ Other -53 Repairs and maintenance 129 143 14 Land rents 101 112 11 Depreciation 2,115 2,181 65 Leasing Business Profit/Loss Land rents 76 76 0 +57 Leasing Business Profit/Loss -123 Other rental expenses from Properties Acquired and Depreciation 794 766 -27 from Properties Sold 639 589 -49 Sold Other rental expenses 318 340 21 (Note 1) Real estate rental profits 9,628 9,617 -10 (Note 1) NOI 11,744 11,799 54 Real estate rental profits ΝΟΙ 3,734 3,581 -153 4,528 4,347 -180 Logistics Residential Feb-22 Aug-22 Feb-22 Aug-22 Number of Property Acquisition Price (min) 23 23 218,182 218,182 Number of Property Acquisition Price (min) 155 202,047 157 211,617 Ended Feb.28,2022(13th FP) From Sep.1, 2021 To Feb.28, 2022 Amount (\mln) Ended Aug.31,2022(14th FP) From Mar.1, 2022 To Aug. 31, 2022 Differences Main factors accounting for differences Ended Feb.28,2022(13th FP) From Sep.1, 2021 To Feb.28, 2022 Ended Aug.31,2022(14th FP) From Mar.1, 2022 To Aug. 31, 2022 Differences Amount (min) Profit/Loss From Existing -200 Amount (min) Property Leasing Business (\min) Amount (min) (min) Main factors accounting for differences Profit/Loss From Existing Property Leasing Business +113 Property related revenues Rental revenues Other rental revenues 6,848 7,115 267 Property related revenues 6,803 7,177 373 6,620 6,854 233 Main factors in the above Rental revenues 6,360 6,641 281 Main factors in the above 227 261 33 • Rent & common expenses -91 Other rental revenues 442 535 92 Rent & common expenses +56 property related expenses 2,590 2,776 185 . Deterioration of utility -18 property related expenses 3,156 3,251 95 • Increase in key money, +71 Property management costs 274 284 9 payment balance Property management costs 226 234 8 renewal fees, etc. (seasonal Property management fees • Increase in repair expenses -47 factors) 117 139 21 Property management fees 354 404 50 • Increase in PM -18 • Increase in PM fees & -28 Property and other taxes. 630 633 2 Property and other taxes 359 363 4 compensation advertising expenses Utility expenses 126 168 41 ⚫ Other -24 Utility expenses 84 90 5 (season factors) Casualty insurance 12 13 1 Casualty insurance 9 10 0 •Decrease in repair expenses +9 Repairs and maintenance. 69 116 47 Leasing Business Profit/Loss +281 Repairs and maintenance 529 524 -5 ⚫ Other +4 Land rents - - from Properties Acquired Land rents Depreciation 1,324 1,374 49 (Note 1) Depreciation 1,344 1,384 40 Leasing Business Profit/Loss +165 Other rental expenses 33 45 11 Other rental expenses 247 238 -9 from Properties Acquired Real estate rental profits 4,257 4,339 81 Real estate rental profits 3,646 3,925 278 (Note 1) NOI 5,582 5,714 131 NOI 4,991 5,310 318 (Note 1) Includes the impact of property acquisitions and sales during Feb. 2022 FP. (Note 2) The real estate rental revenues of Kojimachi Millennium Garden (Residential Building) are included in the results of the office sector. 45#46Balance Sheet Assets Liabilities and Net Assets 13th Fiscal Period as of Feb. 28, 2022 14th Fiscal Period as of Aug. 31, 2022 Amount Ratio Amount Ratio (\mln) (%) (\mln) (%) 13th Fiscal Period as of Feb. 28, 2022 Amount (min) 14th Fiscal Period as of Aug. 31, 2022 Ratio Amount Ratio (%) (\min) (%) Current Assets 52,191 4.4 47,055 4.0 Current liabilities 68,902 5.8 76,816 6.5 Cash and Cash Equivalents Cash and Cash Equivalent in Trust 37,690 3.2 31,608 2.7 Trade Accounts Payable 1,627 0.1 2,676 0.2 12,546 1.1 13,283 1.1 Current portion of long-term debt 58,615 4.9 64,435 5.4 Other Current Assets 1,954 0.2 2,163 0.2 Lease obligations in trust 0 0.0 0 0.0 Fixed Assets Tangible Fixed Assets Real Estate Building 1,135,087 95.6 1,140,392 96.0 Other accounts payable 2,475 0.2 2,613 0.2 1,050,092 88.4 1,053,949 88.7 Accrued expenses 317 0.0 363 0.0 448,767 37.8 458,296 38.6 Accrued income taxes 135,564 11.4 137,483 11.6 Accrued consumption taxes 182 28 0.0 2 0.0 0.0 1,015 0.1 Land 313,203 26.4 320,813 27.0 Rent Received in Advance 5,588 0.5 5,617 0.5 Real Estate in Trust 601,254 Unearned revenue 26 0.0 12 0.0 50.6 595,598 50.2 Provision for loss on disaster 20 0.0 37 0.0 Building in Trust 169,277 14.3 167,064 14.1 Derivatives liabilities Land in Trust 431,974 36.4 428,531 36.1 N 27 0.0 33 0.0 Other current liabilities 17 0.0 7 0.0 Leased assets 2 0.0 2 0.0 Fixed Liabilities 501,640 42.2 495,637 41.7 Construction in progress 70 0.0 54 0.0 Investment Corporation Bonds 32,000 2.7 32,000 2.7 Intangible Fixed Assets 81,482 6.9 83,126 7.0 Long-term Loans 427,140 36.0 421,027 35.5 Goodwill 72,475 6.1 69,853 5.9 Lease obligations in trust 2 0.0 1 0.0 Leasehold rights 1,331 0.1 5,602 0.5 Long-term advanced received 7 0.0 2 0.0 Leasehold rights in trust 7,625 0.6 7,624 0.6 Security deposits from tenants 14,028 1.2 14,449 1.2 Other 50 0.0 46 0.0 Security deposits from tenants 14,028 1.2 14,449 1.2 Investment and Other Assets 3,511 0.3 3,316 0.3 Derivatives liabilities 76 0.0 20 20 0.0 Long-term Repaid Expenses 2,176 0.2 2,076 0.2 Total liabilities 570,542 48.0 572,453 48.2 Long-term deposits 445 0.0 354 0.0 Total unitholder's equity 616,972 52.0 615,175 51.8 Security Deposits 885 0.1 885 0.1 Unitholders' capital 244,893 20.6 244,996 20.6 Derivatives Assets 4 0.0 0.0 Surplus 372,078 31.3 370,179 31.2 Deferred Assets 141 0.0 133 0.0 Capital surplus 394,012 33.2 394,012 33.2 Investment Corporation Bond Issuing Expenses 141 0.0 133 0.0 Allowance for temporary difference adjustments -18,295 -1.5 -20,286 -1.7 Total Assets 1,187,420 100.0 1,187,581 100.0 Other diduction from capital surplus -16,214 -1.4 -17,142 -1.4 Total deduction from capital surplus Retained earnings -34,509 -2.9 -37,428 -3.2 12,575 1.1 13,594 1.1 Valuation and translation adjustments Deferred gains or losses on hedges Total net assets Total liabilities and net assets -94 -0.0 -47 -0.0 -94 -0.0 -47 -0.0 616,878 52.0 615,128 51.8 1,187,420 100.0 1,187,581 100.0 46 46#47Distribution Policy and Distribution in Excess of Net Earnings in the 14th FP Basic distribution policy Distribution policy if gain on sales of real estate occurs Distributions in excess of net earnings may be adjusted to retain cash of an amount equivalent to gain on sale of real estate to promote stable medium- to long-term management. (Note1) Distribute net earnings + amortization of goodwill Net earnings Reserve 10 Gain on sales to gain on sale Internal reserves equivalent Distribution in 1 10 10 excess of net earnings Gain on sales is distributed, and a corresponding amount is deducted from distributions in excess of net earnings (Note) Figures shown above are for illustrative purposes only _Amortization Amortization of goodwill Distributions in excess of net earnings Gain on sales of goodwill 20 10 Gain on sales Net Net earnings 80 earnings 80 Net earnings 80 Net earnings Distribution of net earnings excl. gain excl. gain excl. gain on sales on sales on sales Net earnings (Statement of income) Distribution policy Breakdown of distributions Net earnings (Statement of income) Total distribution Distributions in excess of net earnings in the 14th Fiscal Period (\mln) 757 561 196 561 Internal reserves equivalent to part of gain on sales (¥561 mln) (Note 1) Amortization 2,060 2,060 of goodwill 2,622 (Gain on sales) 757 757 Total distribution ¥15,560 million (¥3,300/unit) Net earnings 12,741 12,741 12,741 12,741 <About distribution in excess of net earnings> Distribution of allowance for temporary difference adjustments : Other distributions in excess of net earnings 160H Distributions in excess Of net earnings 1,900 ¥2,060 million (¥437/unit) 2,060 1,903 (Note2) (fractional adjustment) Other distributions in excess of net earnings (Income tax not withheld) ¥160million (¥34/unit) Distributions of net earnings ¥13,499 million (¥2,863/unit) 13,499 Distributions of net earnings, etc.(Income tax withheld) ¥15,399 million (¥3,266/unit) Net earnings (Statement of income) Distribution policy Total distribution (Before adjustment of fractions less than one unit) Total distribution (After adjustment of fractions less than one unit) Allowance for temporary difference adjustments Distributions in excess of net earnings (breakdown) (Note 1) When there is a gain on sales, NMF's policy is, in principle, to set aside an amount equivalent to the gain that is not more than the amount of amortization of goodwill as retained earnings within the scope that will not be subject to income tax. In the 14th fiscal period, it is expected that the retained portion equivalent to gain on sales will not be taxed, as it will be within the amount equivalent to distributions in excess of net earnings (distributions that reduce capital under tax law). (Note2) The amount is obtained by deducting underdepreciation, etc. (provision deduction items) attributable to the difference between depreciation in tax and accounting treatments from amortization of goodwill, etc. (provision addition items). 47#48Driving Force for External Growth ~4 Major Brands Development by Sponsor~ Sponsor pipeline amounting to about 820 billion yen in total for properties completed and under development, and additional investment amounts Pmo PREMIUM MIDSIZE OFFICE PMO is a new category of office building that is midsized yet offers the functionality and quality of a large sized building to meet the needs of increasingly diverse businesses. 1 Office buildings where people will be proud to work, strengthening hiring and retention (2) Offices that enhance corporate image and reputation, helping to attract customers 3 Building with one tenant per floor to ensure efficiency, independence and safety Pmo Landport Landport offers advanced functionality to meet the needs of the changing logistics environment and diverse tenants. Designed for optimized, efficient logistics to enhance tenant satisfaction. (4) Places that stimulate employee motivation and communication, fostering enhanced productivity PMO Akihabara-kita Landport Higashi-narashino GEMS GEMS comprise a variety of restaurants, primarily in urban areas, with a commitment to quality. Brightening and enriching the lives of nearby office workers and residents while proposing new lifestyles. GEMS Sangenjyaya PROUD - FLAT PROUD FLAT is developed on locations optimally suited for urban rental housing selected by leveraging the Nomura Real Estate Group's information network and know-how related to housing development and sales. Quality control and proper operations and management are ensured utilizing Nomura Real Estate Group's proprietary rental housing complex design standards and quality control inspection guidelines. (Note) Figures based on the financial results of Nomura Real Estate Holdings for the first quarter of the fiscal year ended March 31, 2023. PROUD FRAT Shibuya-tomigaya 48 188#49Track Record of Growth since Incorporation Improved portfolio quality through property replacement taking advantage of the Sponsor's support and achieved steady increase in distributions. Number of Properties Incorporation 257 Aug. 2022 FP After asset replacement (Note2) Ratio of top 10 Properties 26.8% Acquisition of high-quality properties mainly developed by the Sponsor 300 292 21.9% 22.1% Ratio of Greater Tokyo area 79.8% Average building age DPU (Note 1) 19.3yrs ¥2,656 Disposition of less competitive properties due to building age, etc. 83.8% 83.9% 20.3yrs 20.8yrs ¥3,300 (+24.2%) (26.7 years without SPR) (Note3) Asset Size (bln) Total Acquisition Price (\bln) Total Disposition Price (\bln) 955.9 960.3 932.8 927.3 922.5 783.6 792.6 784.6 1,011.2 1,031.0 1,051.6 1,066.2 1,068.4 1,081.3 1,091.7 1,084.5 220.9 237.4 270.8 279.9 330.9 350.6 371.3 385.9 388.0 405.0 420.1 421.5 Total Acquisition Price ¥421.5bln 181.9 9.0 33.6 -34.1 34.1 -81.5 -105.0 -105.0 -110.3 -110.3 -110.3 -110.3 -110.4 -110.4 -114.3 -119.7 -130.2 Total Disposition Price ¥130.2 bln Incorporation (Oct-15) Feb-16 Aug-16| Feb-17 Aug-17 Feb-18 Aug-18 Feb-19| Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 After asset replacement (Note 1) Distributions for February 2016 FP are calculated on a six-month basis for 152 operating days. (Note2) As of March 15th, 2023. (Note3) It is an average building age without taking into account the effect of property acquisition and disposition from the original portfolio at incorporation until March 15th, 2023. 49 49#50Changes in Main Indices Operating revenues (\mln) *Figures in parenthesis indicate total operating revenues excluding gain on sales. NOI (\mln) Average NOI Yield Gain on sales ■Residential Logistics Retail Office 37,520 (37,358) 39,022 (38,264) 5.2% 5.2% 5.2% 5.1% 5.0% 5.0% 36,927 37,577 38,064 37,519 757 162 6,605 6,893 6,784 6,879 6,803 7,177 27,268 27,573 27,008 26,357 26,995 27,350 5,747 6,313 6,654 6,663 6,848 7,115 5,141 5,065 5,089 4,910 4,991 5,310 6,931 6,420 6,605 6,175 4,595 5,183 5,355 5,428 5,582 5,714 6,336 6,272 4,963 4,557 4,836 4,450 4,528 4,347 17,417 17,724 17,778 17,658 17,198 17,497 11,685 12,188 12,110 12,010 11,744 11,799 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Acquisition price (\mln) DPU(¥) and LTV(%) LTV Forecast 1,051,686 1,031,039 1,066,269 1,068,409 1,081,389 1,091,759 3,317 3,317 3,330 3,330 3,279 3,288 3,288 199,467 202,047 202,047 202,047 202,047 211,617 3,248 3,244 3,227 174,690 186,562 201,182 201,182 218,182 218,182 176,527 178,342 178,304 180,444 178,744 174,044 3rd PO Results 3,296 3,300 43.6 43.6 43.2 43.3 43.4 469,205 473,585 473,585 473,585 471,265 476,765 42.8 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-20 Aug -20 Feb -21 Aug -21 Feb -22 Aug -22 (Note) In operating revenues, NOI and acquisition price, the total amount includes each amount for hotels and other properties though it is not indicated individually. 50#51Occupancy Rate and Average Rent Occupancy Rate (%) Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Office 99.8 99.4 98.9 96.4 97.9 98.2 Retail 99.2 99.5 98.8 97.9 97.8 98.5 Logistics 98.5 100.0 100.0 100.0 100.0 99.4 Residential 97.3 95.9 96.5 95.8 97.0 97.5 Hotels 100.0 100.0 56.9 100.0 100.0 100.0 Others 100.0 100.0 100.0 100.0 100.0 100.0 Total 98.8 99.1 98.8 98.1 98.7 98.7 Average Rent (\/ tsubo) Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Office 18,301 18,510 18,603 18,691 18,879 18,903 Retail 8,693 8,727 8,566 8,437 8,277 8,121 Logistics 3,999 4,003 3,975 3,975 3,986 4,021 Residential 11,520 11,602 11,606 11,589 11,559 11,604 51#52Asset Management Status - Office - Change in floor area from move-ins & move-outs (Tsubo) ■Move-out ■Move-in Occupancy Rate (%) 96.4 97.9 98.2 98.1 99.8 99.4 98.9 Average Rent (\/Tsubo) 5,825 Approximately 2,500 3,194 3,637 2,255 1,351 2,052 1,434 (Note 1) -2,272 -1,809 18,510 18,603 18,690 18,879 18,903 -3,130 -2,786 18,301 -3,670 Approximately 2,500 -6,944 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 (Forecast) Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 22-Aug Increase/decrease in monthly contract rent (\mln) (Note 2) 2,725 161 -144 21 11 250 200 Contract renewals (number of renewals) (Note 3) ■Up Flat Down 44 38 (21.0%) 150 147 114 (65.1%) (72.8%) 62 (38.3%) (26.2%) 100 2,752 72 (53.3%) 98 122 138 (76.2%) 50 60 (34.3%) 1 55 (27.2%) 0 63 (46.7%) 0 (60.5%) (72.6%) 2 2 5 0 T Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Total Feb-22 New contracts Cancellation (13th FP) (+) (-) Renewal with Acquisition of Total Aug-22 rent change(+) property(+) (14th FP) (Note 1) These figures show contracted sections and sections for which NMF received applications for occupancy as of the end of February 2023. (Note 2) Dwelling units of Kojimachi Millennium Garden are excluded. (Note 3) For tenants whose rent revision conditions have not been finalized at the end of the 13th FP, the previous conditions are shown. 52 42#53Asset Management Status - Logistics - Lease maturities (Note) (rent basis) 7.3% 7.3% 5.8% 3.1% 1.7% 8.6% 8.6% 7.5% 6.0% 5.0% 1.5% 0.0% Feb-23 Aug-23 Feb-24 Aug-24 Feb-25 Aug-25 Feb-26 Aug-26 Feb-27 Aug-27 Feb-28 Aug-28 Rent revision status Revision target FP Property Remarks Aug. 2022 FP Sagamihara Onodai Logistics Center Contract signed Aug. 2022 FP Landport Atsugi Contract signed Aug. 2022 FP Landport Atsugi Contract signed Aug. 2022 FP Atsugi Minami Logistics Center B Tower Contract signed (Note) The sections that have been re-contracted by today are listed as the contract expiration time in the new contract. 53#54Asset Management Status - Residential - 28 -959 45 H -143 Change in move-ins and move-outs (unit) Rent change at move-ins and move-outs (%) Move-in Move-out ―Net Down Flat ■Up 1,324 1,260 1,150 1,110 1,152 987 23.9 31.0 36.8 59.5 13.4 74.9 75.3 15.0 136 69 17.5 -91 16.8 62.8 54.0 45.8 16.8 15.0 -1,065 -1,016 23.7 -1,293 -1,351 -1,255 8.3 9.7 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Rent change at renewals (%) Occupancy rate by area Down Flat ■Up 7.8 15.9 15.7 11.7 8.5 5.3 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Total 97.3% 95.9% 96.5% 95.8% 97.0% 97.5% Tokyo area 98.1% 96.5% 97.1% 95.8% 96.8% 97.7% Sapporo 95.5% 94.6% 95.7% 95.9% 97.7% 96.6% 92.2 84.1 84.3 88.2 90.6 93.8 Sendai 93.8% 91.1% 98.1% 98.4% 99.4% 97.4% Nagoya 95.0% 94.4% 92.3% 96.5% 97.4% 97.3% Osaka 94.9% 95.1% 90.9% 92.5% 95.3% 97.8% 0.0 Feb-20 0.0 0.0 0.1 0.9 0.9 Fukuoka 98.8% 97.2% 99.3% 96.6% 97.4% 97.9% Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 54#55Asset Management Status - Retail - (\mln) 8,000 Rent revenue breakdown (overall retail) Residential areas (fixed-rent) Sales-linked rent 3.0% 6,000 4,000 1.0% 0.8% 2,000 0.5% Station areas (fixed-rent) Rate of sales-linked rent (%) 2.3% 1.7% Retail properties located in residential areas: Lease team diversification (rent basis) 0.3% 0 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Amount of change in monthly rent and rate of change in monthly rent upon tenant replacement (retail properties in station areas) Amount of change in monthly rent ( \ thou) -Rate of change in monthly rent 19.7% 12.9% 3,355 0.0% 870 -2,171 -1,157 -1,451 0 Aug-23 4.3% Feb-24 Aug-24 10.9% Feb-25 Aug-25 Feb-26 Aug-26 (Note) Contracts that do not set a lease term (legal renewal) are not included Amount of change in monthly rent and rate of change in monthly rent upon rent revision (retail properties in station area) Amount of change in monthly rent (\thou) Rate of change in monthly rent 5.0% 0.0% 1,801 -9,165 -6,760 -5,185 -3,074 0 -1.3% -12.4% -10.9% -5.4% -9.6% -20.3% -14.3% Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 55#56Top 5 Tenants by Leased Space Office Logistics No Tenant 1 (Not disclosed) Omron Kyoto Center Building Property Name Leased space (m) Weight in portfolio (%) No ON 34,616.84 1.6 1 (Not disclosed) Tenant Property Name Leased space (m) Weight in portfolio (%) Landport Kawagoe 139,996.82 6.5 Landport Ome III NEC Head Office Building 2 NEC Corporation 34,556.76 1.6 Landport Ome II 2 Konoike Transport Co., Ltd. 88,637.52 4.1 Shinjuku Nomura Building Hanyu Logistics Center 3 (Not disclosed) NRE Tennozu Building 14,507.40 0.7 3 JP Rakuten Logistics, Inc. Landport Higashi-Narashino 61,088.01 2.8 4 (Not disclosed) Kojimachi Millennium Garden 11,678.05 0.5 4 (Not disclosed) Landport Ome I 57,751.27 2.7 5 Custody Bank of Japan, Ltd. Harumi Island Triton Square Office Tower Y 5 Fukuyama Transporting Co., Ltd. 10,724.24 0.5 Sagamihara Onodai Logistics Center 57,448.03 21 2.7 Top 5 tenants total 404,921.65 18.9 Top 5 tenants total 106,083.29 4.9 Retail No Tenant Property Name Leased space (m) Weight in portfolio (%) Izumiya SC Yao 1 H2O Shopping Center Development Co., Ltd. Izumiya SC Senrioka 70,311.49 3.3 Izumiya SC Obayashi 2 Ito-Yokado Co., Ltd. Sagamihara Shopping Center 60,991.12 2.8 Yokosuka More's City 3 YOKOHAMA OKADAYA Co., Ltd. 48,193.96 2.2 Kawasaki More's Mitsubishi Motors Meguro(Land) 4 (Not disclosed) 29,627.97 1.4 12 other properties Nitori Makuhari 5 (Not disclosed) Musashiurawa Shopping Square 19,653.37 0.9 Top 5 tenants total 228,777.91 10.7 (Note) Pass-through type master lease contracts are excluded from the calculation 56 99#57Portfolio Summary as of August 31, 2022 Portfolio Summary Number of properties Acquisition price (\mln) Appraisal value (\mln) Building age Floor area Leased area (years) (m) (m) Office 68 476,765 559,170 26.7 809,529.68 481,405.66 Retail 49 174,044 194,973 20.1 380,960.46 358,630.03 Retail(Station areas) 22 115,195 123,830 19.5 158,826.95 112,647.09 Retail (Residential areas) 27 58,848 71,143 21.5 222,133.51 245,982.94 Logistics 23 218,182 278,090 11.1 974,111.33 963,090.63 Residential 157 211,617 241,465 15.9 388,834.50 320,298.21 Hotels 2 6,250 6,260 14.3 7,699.09 7,776.22 Other 1 4,900 5,460 Total 300 1,091,759 1,285,418 20.3 2,561,135.06 14,431.35 2,145,632.10 Portfolio Data Stable 45.2% other 0.4% Hotels 0.6% Residential 19.4% Logistics 20.0% Retail (Station Retail (Residential areas) 5.4% areas) 10.6% Office 43.7% Upside 54.8% Others 16.2 Greater Tokyo area 83.8 Others 290 prop. 78.1% Top 10 properties 21.9% Balanced portfolio mix Concentration in Greater Tokyo area Advanced property diversification 57 57#58Portfolio List Feb. 2022 Aug. 2022 Comparison b/w Feb.2022 and Aug.2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Appraisal value Cap rate Gain or Loss Appraisal value Cap rate (million yen) (million yen) (million yen) (%) (million yen) (million yen) (million yen) (%) (million yen) (million yen) change (%) change (%) Of-T-001 Tokyo Office Shinjuku Nomura Building 43,900 46,954 50,400 3.5 3,445 46,883 51,800 3.4 4,916 1,400 2.8 -0.1 Of-T-002 Tokyo Office NRE Tennozu Building 20,500 20,647 21,600 4.0 952 20,598 21,700 3.9 1,101 100 0.5 -0.1 Of-T-003 Tokyo Office Kojimachi Millennium Garden 26,700 26,446 29,200 3.6 2,753 26,435 30,200 3.5 3,764 1,000 3.4 -0.1 Of-T-006 Tokyo Office NMF Shinjuku Minamiguchi Building 10,000 10,131 13,100 3.3 2,968 10,129 13,400 3.2 3,270 300 2.3 -0.1 Of-T-007 Tokyo Office NMF Shibuya Koen-dori Building 10,400 10,522 10,800 3.6 277 10,512 10,500 3.5 -12 -300 -2.8 -0.1 Of-T-008 Tokyo Office Secom Medical Building 11,100 10,611 12,600 3.6 1,988 10,567 13,000 3.5 2,432 400 3.2 -0.1 Of-T-009 Tokyo Office NMF Shiba Building 7,040 7,115 7,210 4.1 94 7,104 7,380 4.0 275 170 2.4 -0.1 Of-T-010 Tokyo Office Nishi Shinjuku Showa Building 8,140 8,191 8,040 4.1 -151 8,186 8,040 4.1 -146 0 0.0 0.0 Of-T-011 Tokyo Office NRE Shibuya Dogenzaka Building 5,310 5,371 5,790 3.6 418 5,358 5,940 3.5 581 150 2.6 -0.1 Of-T-013 Tokyo Office Iwamoto-cho Toyo Building 4,050 4,089 4,880 3.5 790 4,109 4,990 3.4 880 110 2.3 -0.1 Of-T-015 Tokyo Office NMF Surugadai Building 4,690 4,705 5,200 3.7 494 4,688 5,260 3.6 571 60 1.2 -0.1 Of-T-016 Tokyo Office PMO Nihonbashi Honcho 4,320 4,054 4,870 3.3 815 4,029 4,930 3.2 900 60 1.2 -0.1 Of-T-017 Tokyo Office PMO Nihonbashi Kayabacho 5,010 4,740 6,610 3.3 1,869 4,718 6,680 3.2 1,961 70 1.1 -0.1 Of-T-018 Tokyo Office NMF Gotanda Ekimae Building 4,430 4,595 5,340 4.4 744 4,573 5,440 4.2 866 100 1.9 -0.2 Of-T-019 Tokyo Office NRE Higashi-nihonbashi Building 3,570 3,760 4,350 3.9 589 3,752 4,350 3.8 597 0 0.0 -0.1 Of-T-020 Tokyo Office PMO Akihabara 4,240 4,017 5,570 3.5 1,552 3,990 5.670 3.4 1,679 100 Of-T-021 Tokyo Office Hatchobori NF Building 2,480 2,428 2,540 3.7 111 2,428 2,610 3.6 181 170 1.8 -0.1 70 2.8 -0.1 Of-T-022 Tokyo Office NMF Kanda Iwamotocho Building 4,160 4,185 4,580 3.7 394 4,189 4,620 3.6 430 40 0.9 -0.1 Of-T-023 Tokyo Office NMF Takanawa Building 2,830 2,876 3,460 3.8 583 2,864 3,530 3.7 665 70 2.0 -0.1 Of-T-024 Tokyo Office PMO Hatchobori 2,880. 2,683 3,530 3.5 846 2,664 3,530 3.4 865 0 0.0 -0.1 Of-T-026 Tokyo Office PMO Nihonbashi Odenmacho 2,210 2,090 3,030 3.7 939 2,072 3,090 3.6 1,017 60 2.0 -0.1 Of-T-028 Tokyo Office PMO Higashi-nihonbashi 1,690 1,550 2,020 3.8 469 1,533 2,010 3.7 476 -10 -0.5 -0.1 Of-T-029 Tokyo Office NRE Ueno Building 6,470 6,580 7,250 3.6 669 6,564 7,270 3.5 705 20 0.3 -0.1 Of-T-031 Tokyo Office Of-T-034 Tokyo Office Of-T-035 Tokyo Office Of-T-036 Tokyo Office Of-T-037 Tokyo NF Hongo Building. 4,890 4,912 5,140 4.4 227 4,897 5,230 4.3 332 90 1.8 -0.1 Crystal Park Building 3,390 3,303 3,370 4.6 66 3,292 3,290 4.5 -2 -80 -2.4 -0.1 NMF Kichijoji Honcho Building 1,780 1,835 2,240 4.2 404 1,838 2,240 4.1 401 0 0.0 -0.1 Faret Tachikawa Center Square 3,850 3,835 4,440 4.2 604 3,832 4,520 4.1 687 80 1.8 -0.1 Office NMF Kawasaki Higashiguchi Building 7,830 8,012 9,570 4.5 1,557 7,992 9,650 4.4 1,657 80 0.8 -0.1 Of-T-038 Tokyo Office NMF Yokohama Nishiguchi Building 5,460 5,583 8,430 3.8 2,846 5,559 8,610 3.7 3,050 180 2.1 -0.1 Of-T-039 Tokyo Office NMF Shin-Yokohama Building 2,620 2,756 2,890 4.6 133 2,732 2,950 4.5 217 60 2.1 -0.1 Of-T-041 Tokyo Office PMO Tamachi 6,210 6,073 8,820 3.1 2,746 6,055 8,880 3.0 2,824 60 0.7 -0.1 Of-T-042 Tokyo Office PMO Ginza Hatchome 3,970 3,900 5,360 3.0 1,459 3,887 5,440 2.9 1,552 80 1.5 -0.1 Of-T-043 Tokyo Of-T-044 Tokyo Office Of-T-045 Tokyo Office Of-T-046 Tokyo Office PMO Shibakoen 3,900 3,816 5,430 3.2 1,613 3,797 5,530 3.1 1,732 100 1.8 -0.1 NEC Head Office Building 44,100 44,452 47,700 3.7 3,247 44,556 48,900 3.6 4,343 1,200 2.5 -0.1 Harumi Island Triton Square Office Tower Y 18,200 17,902 17,300 3.8 -602 17,878 17,400 3.7 -478 100 0.6 -0.1 Office NMF Aoyama 1-chome Building. 10,400 10,546 13,900 3.0 3,353 10,567 13,900 2.9 3,332 0 0.0 -0.1 Of-T-047 Tokyo Office NMF Takebashi Building 8,330 8,505 8,950 3.7 444 8,528 9,140 3.6 611 190 2.1 -0.1 Of-T-048 Tokyo Office Harumi Island Triton Square Office Tower Z 8,180 8,006 8,470 3.8 463 7,994 8.480 3.7 485 10 0.1 -0.1 Of-T-049 Tokyo Office NMF Kayabacho Building 6,070 6,054 8,110 3.7 2,055 6,031 8,350 3.6 2,318 240 3.0 -0.1 Of-T-050 Tokyo Office NMF Shinjuku EAST Building 5,710 5,800 6,440 3.8 639 5,789 6,600 3.7 810 160 2.5 -0.1 Of-T-051 Tokyo Office NMF Shiba-Koen Building 3,620 3,767 4,600 3.5 832 3,756 4,730 3.4 973 130 2.8 -0.1 Of-T-052 Tokyo Office NMF Ginza 4-chome Building. 1,850 1,961 2,230 3.5 268 1,981 2,270 3.4 288 40 1.8 -0.1 Of-T-053 Tokyo Office Faret East Building 1,850 1,829 2,100 4.2 270 1,818 2,150 4.1 331 50 2.4 -0.1 Of-T-054 Tokyo Office PMO Shinnihonbashi 4,440 4,360 5,410 3.3 1,049 4,343 5,580 3.2 1,236 170 3.1 -0.1 58#59Portfolio List Feb. 2022 Aug. 2022 Comparison b/w Feb.2022 and Aug.2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Appraisal value Cap rate Gain or Loss Appraisal value Cap rate (million yen) (million yen) (million yen) (%) Of-T-055 Tokyo Of-T-056 Tokyo Office PMO Hirakawacho 3,410 3,363 4,300 3.1 (million yen) 936 (million yen) (million yen) (%) 3,354 4,340 3.0 (million yen) 985 (million yen) change (%) change (%) 40 0.9 -0.1 Office PMO Nihonbashi Mitsukoshi-mae 4,310 4,301 5,760 2.8 1458 4,289 5,910 2.7 1620 150 2.6 -0.1 Of-T-057 Tokyo Office PMO Shibadaimon 2,130 2,132 2,610 3.2 477 2,123 2,650 3.1 526 40 1.5 -0.1 Of-T-058 Tokyo Office PMO Tamachi II 10,900 10,860 12,800 3.1 1939 10,830 13,100 3.0 2269 300 2.3 -0.1 Of-T-059 Tokyo Office PMO Hatchobori Shinkawa 3,805 3,786 4,290 3.4 503 3,772 4,380 3.3 607 90 2.1 -0.1 Of-T-060 Tokyo Office PMO Hatchobori III 2,880 2,879 3,290 3.3 410 2,869 3,350 3.2 480 60 1.8 -0.1 Of-T-061 Tokyo Office PMO Ochanomizu 3,890 3,877 4,590 3.2 712 3,867 4,700 3.1 832 110 2.4 -0.1 Of-T-062 Tokyo Office PMO Akihabara Kita 8,450 8,428 9,540 3.3 1111 8,395 9,770 3.2 1374 230 2.4 -0.1 Of-T-063 Tokyo Office PMO Higashi-Shinbashi 4,730 4,754 5,490 3.2 735 4,737 5,610 3.1 872 120 2.2 -0.1 Of-T-064 Tokyo Office PMO Hamamatsucho 4,380 4,395 5,130 3.1 734 4,379 5,280 3.0 900 150 2.9 -0.1 Of-T-065 Tokyo Office PMO Hamamatsucho II 5,500 5,543 6,100 3.2 556 Of-S-001 Other Office Sapporo North Plaza 6,250 6,582 8,980 4.3 2397 6,700 9,270 4.1 2569 290 3.2 -0.2 Of-S-002 Other Office NRE Sapporo Building 4,140 3,695 5,140 4.4 1444 3,651 5,570 4.2 1918 430 8.4 -0.2 Of-S-004 Other Office NMF Sendai Aoba-dori Building 2,030 2,188 2,610 5.4 421 2,178 2,620 5.4 441 10 0.4 0.0 Of-S-006 Other Office NMF Nagoya Fushimi Building 2,240 1,975 2,630 4.1 654 1,957 2,650 4.0 692 20 0.8 -0.1 Of-S-007 Other Office NMF Nagoya Yanagibashi Building 2,280 2,530 2,290 4.7 -240 2,516 2,260 4.6 -256 -30 -1.3 -0.1 Of-S-008 Other Office Omron Kyoto Center Building 18,300 18,206 19,900 4.4 1693 18,237 20,200 4.3 1962 300 1.5 -0.1 Of-S-009 Other Office SORA Shin-Osaka 21 12,100 11,971 12,600 4.1 628 12,009 12,900 4.0 890 300 2.4 -0.1 Of-S-010 Other Office NRE Osaka Building 6,100 7,740 7,540 4.5 -200 7,735 7,680 4.4 -55 140 1.9 -0.1 Of-S-011 Other Office NRE Nishi-Umeda Building 3,450 3,640 3,840 4.2 199 3,641 3,840 4.2 198 0 0.0 0.0 Of-S-012 Other Office NRE Yotsubashi Building 4,000 4,452 4,960 4.3 507 4,441 5,140 4.2 698 180 3.6 -0.1 Of-S-013 Other Office NRE Hiroshima Building 2,280 2,460 2,880 5.5 419 2,455 2,920 5.4 464 40 1.4 -0.1 Of-S-014 Other Office NMF Hakata Ekimae Building 4,210 4,254 6,030 4.3 1775 4,237 6,120 4.2 1882 90 1.5 -0.1 Of-S-015 Other Office NMF Tenjin-Minami Building 2,230 2,036 2,960 4.4 923 2,025 3,030 4.3 1004 70 2.4 -0.1 476,765 476,085 543,030 66944 481,042 559,170 78127 10040 1.8 Rt-T-002 Tokyo Retail Yokosuka More's City 13,640 13,729 15,700 4.8 1970 13,736 15,300 4.8 1563 -400 -2.5 0.0 Rt-T-003 Tokyo Retail Recipe SHIMOKITA 10,407 10,222 11,000 3.9 777 10,175 10,800 3.8 624 -200 -1.8 -0.1 Rt-T-004 Tokyo Retail Kawasaki More's 6,080 6,579 8,520 4.1 1940 6,553 8,500 4.1 1946 -20 -0.2 0.0 Rt-T-005 Tokyo Retail EQUINIA Shinjuku 4,260 4,271 5,150 3.7 878 4,266 5,160 3.7 893 10 0.2 0.0 Rt-T-006 Tokyo Retail EQUINA Ikebukuro 3,990 4,010 4,540 4.1 529 4,001 4,550 4.1 548 10 0.2 0.0 Rt-T-007 Tokyo Retail covirna machida 3,440 3,793 4,090 4.2 296 3,821 4,200 4.1 378 110 2.7 -0.1 Rt-T-008 Tokyo Retail Nitori Makuhari 3,080 2,639 3,960 4.6 1320 2,617 3,950 4.6 1332 -10 -0.3 0.0 Rt-T-009 Tokyo Rt-T-010 Tokyo Retail Retail Konami Sports Club Fuchu 2,730 2,527 3,390 5.0 862 2,520 3,390 5.0 869 0 0.0 0.0 FESTA SQUARE 2,600 2,192 3,580 4.8 1387 2,168 3,580 4.8 1411 0 0.0 0.0 Rt-T-011 Tokyo Retail GEMS Shibuya 2,490 2,348 2,750 4.3 401 2,338 2,790 4.3 451 40 1.5 0.0 Rt-T-013 Tokyo Retail EQUINIA Aobadai 1,560 1,566 2,630 4.7 1063 1,557 2,720 4.5 1162 90 3.4 -0.2 Rt-T-014 Tokyo Retail Megalos Kanagawa 1,000 945 1,550 5.2 604 944 1,550 5.2 605 0 0.0 0.0 Rt-T-015 Tokyo Retail Mitsubishi Motors Meguro (*1) 2,740 2,764 3,460 5.1 695 2,764 3,460 5.1 695 0 0.0 0.0 Rt-T-016 Tokyo Retail Mitsubishi Motors Chofu (1) 1,760 1,776 1,730 5.2 -46 1,776 1,740 5.1 -36 10 0.6 -0.1 Rt-T-018 Tokyo Retail Mitsubishi Motors Nerima (1) 1,240 1,251 1,470 5.2 218 1,251 1,500 5.1 248 30 2.0 -0.1 Rt-T-019 Tokyo Retail Mitsubishi Motors Kawasaki (1) 950 959 1,300 6.1 340 959 1,300 6.1 340 0 0.0 0.0 Rt-T-020 Tokyo Retail Mitsubishi Motors Takaido (1) 850 859 856 5.1 -3 859 859 5.0 0 3 0.4 -0.1 Rt-T-021 Tokyo Retail Mitsubishi Motors Katsushika (1) 762 770 880 5.2 109 770 880 5.2 109 0 0.0 0.0 Rt-T-022 Tokyo Retail Mitsubishi Motors Higashikurume (1) 800 808 909 6.1 100 808 916 6.0 107 7 0.8 -0.1 59#60Portfolio List Feb. 2022 Aug. 2022 Comparison b/w Feb.2022 and Aug.2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Appraisal value Cap rate Gain or Loss Appraisal value Cap rate (million yen) Rt-T-023 Tokyo Rt-T-025 Tokyo Rt-T-026 Tokyo Retail Retail Retail Mitsubishi Motors Setagaya (1) Mitsubishi Motors Sekimachi (1) 770 (million yen) 779 (million yen) (%) 1,160 4.9 (million yen) 380 (million yen) 779 (million yen) (%) 1,190 4.9 (million yen) 410 (million yen) change (%) change (%) 30 2.6 0.0 600 606 733 5.3 126 606 740 5.3 133 7 1.0 0.0 Mitsubishi Motors Higashiyamato (1) 450 455 537 7.6 81 455 537 7.6 81 0 0.0 0.0 Rt-T-027 Tokyo Retail Mitsubishi Motors Motosumiyoshi (1) 370 375 416 5.8 40 375 425 5.7 49 9 2.2 -0.1 Rt-T-028 Tokyo Retail Welcia Kawagoe Shinmeicho (*1) 350 355 438 5.0 82 355 438 5.0 82 0 0.0 0.0 Rt-T-029 Tokyo Retail Mitsubishi Motors Edogawa (1) 200 204 179 5.5 -25 204 179 5.4 -25 0 0.0 -0.1 Rt-T-030 Tokyo Retail Mitsubishi Motors Sayama (1) 160 163 187 7.9 23 163 188 7.9 24 1 0.5 0.0 Rt-T-031 Tokyo Retail NRE Kichijoji Building 10,410 10,128 11,400 3.8 1,271 10,102 11,400 3.8 1,297 0 0.0 0.0 Rt-T-032 Tokyo Retail GEMS Ichigaya 2,080 2,025 2,110 3.8 84 2,017 2,120 3.8 102 10 0.5 0.0 Rt-T-033 Tokyo Retail Sagamihara Shopping Center 6,840 6,788 7,550 5.8 761 6,753 7,550 5.8 796 0 0.0 0.0 Rt-T-034 Tokyo Retail Musashiurawa Shopping Square 2,720 2,529 2,830 6.8 300 2,538 2,820 6.8 281 -10 -0.4 0.0 Rt-T-036 Tokyo Retail Summit Store Naritahigashi (Land) 700 747 801 3.6 53 747 801 3.6 53 0 0.0 0.0 Rt-T-037 Tokyo Retail GEMS Daimon 2,060 1,999 2,070 3.8 70 1,989 2,030 3.8 40 -40 -1.9 0.0 Rt-T-038 Tokyo Retail GEMS Kanda 1,500 1,460 1,440 3.9 -20 1,454 1,440 3.9 -14 0 0.0 0.0 Rt-T-039 Tokyo Retail Summit Store Mukodaicho 5,100 5,048 5,330 4.3 281 5,035 5,330 4.3 294 0 0.0 0.0 Rt-T-040 Tokyo Retail GEMS Shinbashi 2,810 2,807 2,690 3.8 -117 2,802 2,690 3.8 -112 0 0.0 0.0 Rt-T-041 Tokyo Retail GEMS Kayabacho 2,594 2,561 2,660 4.1 98 2,549 2,660 4.1 110 0 0.0 0.0 Rt-T-042 Tokyo Retail Summit Store Honamanuma 2,160 2,157 2,890 4.5 732 2,153 2,960 4.4 806 70 2.4 -0.1 Rt-T-043 Tokyo Retail GEMS Shin-Yokohama 1,820 1,778 1,820 5.1 41 1,765 1,840 5.1 74 20 1.1 0.0 Rt-T-044 Tokyo Retail GEMS Sangenjaya 1,815 1,816 1,780 3.9 -36 1,809 1,790 3.9 -19 10 0.6 0.0 Rt-S-001 Other Retail Universal CityWalk Osaka 17,639 17,139 18,600 4.3 1,460 17,041 18,300 4.3 1,258 -300 -1.6 0.0 Rt-S-002 Other Retail Izumiya SC Senrioka 8,930 8,495 11,500 4.7 3,004 8,474 11,700 4.7 3,225 200 1.7 0.0 Rt-S-004 Other Retail Izumiya SC Yao 4,406 3,990 5,600 5.1 1,609 3,978 5,630 5.1 1,651 30 0.5 0.0 Rt-S-005 Other Retail Izumiya SC Obayashi 3,020 3,145 4,120 5.1 974 3,123 3,850 5.1 726 -270 -6.6 0.0 Rt-S-007 Other Retail EQUINIA Aobadori 1,640 1,296 1,820 4.8 523 1,274 1,830 4.8 555 10 0.5 0.0 Rt-S-008 Other Retail MEL Building 1,060 1,048 1,200 5.2 151 1,046 1,200 5.2 153 0 0.0 0.0 Rt-S-009 Other Retail NORBESA 8,500 8,617 8,570 4.6 -47 8,700 8,440 4.6 -260 -130 -1.5 0.0 Rt-S-010 Other Rt-S-011 Other Rt-S-012 Other Retail Nakaza Cui-daore Building 11,600 12,154 9,760 3.4 -2,394 12,148 9,760 3.4 -2,388 0 0.0 0.0 Retail NMF Kobe Myodani Building 3,560 3,577 3,680 4.4 102 3,580 3,680 4.4 99 0 0.0 0.0 Retail GEMS Namba 3,800. 3,781 4,300 3.8 518 3,767 4,310 3.8 542 10 0.2 0.0 174,044 172,055 195,636 23,580 171,688 194,973 23,284 -663 -0.3 Lg-T-001 Tokyo Lg-T-002 Tokyo Lg-T-003 Tokyo Logistics Landport Urayasu Logistics Landport Itabashi Logistics Landport Kawagoe 17,400 15,855 23,400 3.6 7,544 15,776 23,900 3.5 8,123 500 2.1 -0.1 15,710 14,400 21,200 3.8 6,799 14,381 21,600 3.7 7,218 400 1.9 -0.1 13,700 11,631 18,900 4.3 7,268 11,508 19,400 4.2 7,891 500 2.6 -0.1 Lg-T-004 Tokyo Logistics Landport Atsugi 11,410 9,891 12,900 3.9 3,008 9,827 13,300 3.8 3,472 400 3.1 -0.1 Lg-T-005 Tokyo Lg-T-006 Tokyo Lg-T-007 Tokyo Lg-T-008 Tokyo Logistics Sagamihara Tana Logistics Center 10,600 9,563 13,700 4.2 4,136 9,490 13,800 4.1 4,309 100 0.7 -0.1 Logistics Logistics Landport Hachioji Logistics Sagamihara Onodai Logistics Center 8,700 8,025 12,200 4.2 4,174 7,976 12,600 4.1 4,623 400 3.3 -0.1 8,250 7,128 10,900 4.2 3,771 7,057 11,100 4.1 4,042 200 1.8 -0.1 Landport Kasukabe 7,340 6,107 9,190 4.3 3,082 6,037 9,410 4.2 3,372 220 2.4 -0.1 Lg-T-010 Tokyo Logistics Atsugi Minami Logistics Center B Tower 4,590 4,055 6,320 4.0 2,264 4,027 6,490 3.9 2,462 170 2.7 -0.1 Lg-T-011 Tokyo Logistics Lg-T-012 Tokyo Hanyu Logistics Center 3,810 3,227 4,870 4.6 1,642 3,188 4,980 4.5 1,791 110 2.3 -0.1 Logistics Kawaguchi Logistics Center B Tower 3,750 3,530 4,750 4.2 1,219 3,511 4,860 4.1 1,348 110 2.3 -0.1 Lg-T-013 Tokyo Logistics Kawaguchi Logistics Center A Tower 2,830 2,737 3,800 4.4 1,062 2,724 3,860 4.3 1,135 60 1.6 -0.1 Lg-T-014 Tokyo Logistics Atsugi Minami Logistics Center A Tower 2,690 2,504 3,700 4.0 1,195 2,494 3,790 3.9 1,295 90 2.4 -0.1 60 60#61Portfolio List Feb. 2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Aug. 2022 Appraisal value Cap rate Comparison b/w Feb.2022 and Aug.2022 Gain or Loss Appraisal value Cap rate (million yen) (million yen) (million yen) (%) (million yen) (million yen) (million yen) (%) (million yen) (million yen) change(%) change(%) Lg-T-015 Tokyo Lg-T-016 Tokyo Logistics Kawaguchi Ryoke Logistics Center Logistics Landport Kashiwa Shonan II 10,790 10,253 14,200 3.9 3,946 10,238 14,600 3.8 4,361 400 2.8 -0.1 10,800 10,528 12,000 4.4 1,471 10,475 12,100 4.3 1,624 100 0.8 -0.1 Lg-T-017 Tokyo Logistics Landport Kashiwa Shonan I 9,900 9,618 11,300 4.5 1,681 9,572 11,600 4.4 2,027 300 2.7 -0.1 Lg-T-018 Tokyo Lg-T-019 Tokyo Lg-T-020 Tokyo Lg-T-021 Tokyo Lg-T-022 Tokyo Logistics Landport Hachioji II Logistics Landport Iwatsuki Logistics Landport Ome I Logistics Landport Higashi-Narashino Logistics Landport Ome II 9,230 9,080 9,960 4.1 879 9,266 11,500 4.0 2,233 1,540 15.5 -0.1 6,090 6,018 6,740 4.3 721 5,997 6,870 4.2 872 130 1.9 -0.1 13,640 13,582 14,800 4.2 1,217 13,521 15,200 4.1 1,678 400 2.7 -0.1 11,872 11,740 16,400 4.1 4,659 11,667 16,800 4.0 5,132 400 2.4 -0.1 14,620 14,704 16,200 4.1 1,495 14,639 16,600 4.0 1,960 400 2.5 -0.1 Lg-T-023 Tokyo Logistics Landport Ome III 17,000 17,214 18,700 4.1 1,485 17,147 19,400 4.0 2,252 700 3.7 -0.1 Lg-S-005 Other Logistics Hirakata Kuzuha Logistics Center 3,460 3,280 4,330 4.3 1,049 3,267 4,330 4.3 1,062 0 0.0 0.0 218,182 204,680 270,460 65,779 203,796 278,090 74,293 7,630 2.8 Rs-T-001 Tokyo Rs-T-002 Tokyo Rs-T-003 Tokyo Residential PROUD FLAT Shirokane Takanawa 3,400 3,180 3,750 3.7 569 3,163 3,860 3.6 696 110 2.9 -0.1 Residential PROUD FLAT Yoyogi Uehara Residential PROUD FLAT Hatsudai 989 950 1,040 3.8 89 944 1,070 3.7 125 30 2.9 -0.1 713 675 748 3.9 72 676 764 3.8 87 16 2.1 -0.1 Rs-T-004 Tokyo Residential PROUD FLAT Shibuya Sakuragaoka 750 703 736 3.8 32 699 752 3.7 52 16 2.2 -0.1 Rs-T-005 Tokyo Rs-T-006 Tokyo Rs-T-007 Tokyo Rs-T-008 Tokyo Residential PROUD FLAT Gakugei Daigaku 746 690 884 3.8 193 690 907 3.7 216 23 2.6 -0.1 Residential PROUD FLAT Meguro Gyoninzaka 939 875 1,090 3.8 214 870 1,120 3.7 249 30 2.8 -0.1 Residential PROUD FLAT Sumida Riverside Residential PROUD FLAT Kagurazaka 2,280 2,068 2,730 3.8 661 2,055 2,800 3.7 744 70 2.6 -0.1 1,590 1,456 1,740 3.8 283 1,445 1,750 3.7 304 10 0.6 -0.1 Rs-T-009 Tokyo Residential PROUD FLAT Waseda 1,110 1,012 1,220 3.8 207 1,003 1,260 3.7 256 40 3.3 -0.1 Rs-T-010 Tokyo Residential PROUD FLAT Shinjuku Kawadacho 932 856 1,050 3.8 193 849 1,080 3.7 230 30 2.9 -0.1 Rs-T-011 Tokyo Residential PROUD FLAT Sangen Jaya 1,190 1,083 1,280 3.9 196 1,076 1,310 3.8 233 30 2.3 -0.1 Rs-T-012 Tokyo Rs-T-013 Tokyo Rs-T-014 Tokyo Rs-T-015 Tokyo Rs-T-016 Tokyo Rs-T-017 Tokyo Residential PROUD FLAT Kamata Residential PROUD FLAT Kamata II Residential PROUD FLAT Shin-Otsuka 1,160 1,028 1,320 4.0 291 1,016 1,330 3.9 313 10 0.8 -0.1 3,320 2,989 3,450 3.8 460 2,964 3,530 3.7 565 80 2.3 -0.1 623 557 566 4.0 8 554 571 3.9 16 5 0.9 -0.1 Residential PROUD FLAT Kiyosumi Shirakawa 928 835 1,020 4.0 184 827 1,050 3.9 222 30 2.9 -0.1 Residential PROUD FLAT Monzen Nakacho II 652 594 641 4.0 46 590 657 3.9 66 16 2.5 -0.1 Residential PROUD FLAT Monzen Nakacho I 1,030 923 975 4.0 51 914 1,000 3.9 85 25 2.6 -0.1 Rs-T-018 Tokyo Residential PROUD FLAT Fujimidai 1,470 1,340 1,980 4.3 639 1,330 2,000 4.2 669 20 1.0 -0.1 Rs-T-019 Tokyo Rs-T-020 Tokyo Rs-T-021 Tokyo Rs-T-022 Tokyo Residential PROUD FLAT Asakusa Komagata 1,920 1,705 2,420 3.7 714 1,689 2,500 3.6 810 80 3.3 -0.1 Residential PROUD FLAT Yokohama 2,090 1,882 2,460 4.2 577 1,869 2,520 4.1 650 60 2.4 -0.1 Residential PROUD FLAT Kamioooka 2,710 2,442 2,940 4.4 497 2,423 3,010 4.3 586 70 2.4 -0.1 Residential PROUD FLAT Tsurumi II 1,650 1,477 2,070 4.1 592 1,464 2,120 4.0 655 50 2.4 -0.1 Rs-T-023 Tokyo Residential PRIME URBAN Azabu Juban 1,100 1,095 1,060 3.8 -35 1,096 1,080 3.7 -16 20 1.9 -0.1 Rs-T-024 Tokyo Residential PRIME URBAN Akasaka 938 921 1,050 3.7 128 920 1,050 3.6 129 0 0.0 -0.1 Rs-T-025 Tokyo Residential PRIME URBAN Tamachi 972 919 1,060 4.0 140 915 1,080 3.9 164 20 1.9 -0.1 Rs-T-026 Tokyo Residential PRIME URBAN Shibaura LOFT 1,830 1,693 2,060 4.0 366 1,680 2,090 3.9 409 30 1.5 -0.1 Rs-T-028 Tokyo Rs-T-029 Tokyo Rs-T-030 Tokyo Residential PRIME URBAN Yoyogi 359 340 345 3.9 4 340 347 3.8 6 2 0.6 -0.1 Residential PRIME URBAN Ebisu II 1,140 1,105 1,610 3.3 504 1,101 1,620 3.2 518 10 0.6 -0.1 Residential PRIME URBAN Bancho 1,090 1,047 1,150 3.9 102 1,045 1,170 3.8 124 20 1.7 -0.1 Rs-T-031 Tokyo Residential PRIME URBAN Chiyoda Fujimi 679 650 726 3.9 75 648 680 3.8 31 -46 -6.3 -0.1 Rs-T-032 Tokyo Residential PRIME URBAN lidabashi 2,040 1,907 1,950 3.9 42 1,896 1,990 3.8 93 40 2.1 -0.1 Rs-T-033 Tokyo Residential PRIME URBAN Ebisu 1,260 1,240 1,370 4.0 129 1,238 1,400 3.9 161 30 2.2 -0.1 Rs-T-034 Tokyo Residential PRIME URBAN Naka Meguro 1,410 1,360 1,490 3.8 129 1,354 1,520 3.7 165 30 2.0 -0.1 61#62Portfolio List Feb. 2022 Aug. 2022 Comparison b/w Feb.2022 and Aug.2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Appraisal value Cap rate Gain or Loss Appraisal value Cap rate Rs-T-035 Tokyo Rs-T-036 Tokyo Rs-T-037 Tokyo Rs-T-038 Tokyo Residential PRIME URBAN Gakugei Daigaku Residential PRIME URBAN Senzoku Residential PRIME URBAN Meguro Riverside Residential PRIME URBAN Meguro Ohashi Hills (million yen) 775 (million yen) (million yen) (%) 728 890 3.8 (million yen) 161 (million yen) 722 (million yen) (%) 905 3.7 474 450 506 3.9 55 447 521 3.8 (million yen) 182 73 (million yen) change (%) change (%) 15 414 380 433 3.8 52 377 445 3.7 67 2,970 2,782 3,310 3.9 527 2,770 3,320 3.8 549 Rs-T-039 Tokyo Residential PRIME URBAN Meguro Aobadai 1,310 1,252 1,850 3.3 597 1,246 1,860 3.2 613 Rs-T-040 Tokyo Rs-T-041 Tokyo Rs-T-042 Tokyo Rs-T-043 Tokyo Rs-T-044 Tokyo Residential PRIME URBAN Gakugei Daigaku II 1,080 1,029 1,430 3.4 400 1,024 1,430 3.3 405 Residential PRIME URBANNaka Meguro II Residential PRIME URBAN Kachidoki Residential PRIME URBAN Shinkawa 2,850 2,804 3,620 3.4 815 2,800 3,700 3.3 899 2,570 2,586 2,470 4.2 -116 2,578 2,500 4.1 -78 2,100 2,108 2,570 4.2 461 2,106 2,590 4.1 483 Residential PRIME URBAN Nihonbashi Yokoyamacho 4,220 3,901 4,900 4.0 998 3,875 4,970 3.9 1,094 Rs-T-045 Tokyo Rs-T-046 Tokyo Rs-T-047 Tokyo Rs-T-048 Tokyo Residential PRIME URBANNihonbashi Hamacho 1,550 1,462 2,040 3.6 577 1,453 2,120 3.5 666 Residential PRIME URBAN Hongo Ikizaka Residential PRIME URBAN Hakusan 557 515 636 4.0 120 511 638 3.9 126 NON WONG 1.7 -0.1 3.0 -0.1 2.8 -0.1 0.3 -0.1 0.5 -0.1 0.0 -0.1 2.2 -0.1 1.2 -0.1 0.8 -0.1 1.4 -0.1 80 3.9 -0.1 0.3 -0.1 866 771 948 3.9 176 764 953 3.8 188 5 0.5 -0.1 Residential PRIME URBAN Yotsuya Gaien Higashi 1,490 1,437 1,520 3.8 82 1,432 1,550 3.7 117 30 2.0 -0.1 Rs-T-050 Tokyo Residential PRIME URBAN Nishi Shinjuku I 1,090 1,022 1,310 3.9 287 1,015 1,340 3.8 324 30 2.3 -0.1 Rs-T-051 Tokyo Rs-T-052 Tokyo Rs-T-053 Tokyo Residential PRIME URBAN Nishi Shinjuku II 885 817 961 3.6 143 810 986 3.5 175 25 2.6 -0.1 Residential PRIME URBAN Shinjuku Naitomachi 430 422 472 3.8 49 420 484 3.7 63 12 2.5 -0.1 Rs-T-054 Tokyo Residential PRIME URBAN Nishi Waseda Residential PRIME URBAN Shinjuku Ochiai 421 381 482 3.8 100 380 494 3.7 113 12 2.5 -0.1 594 599 617 4.4 17 597 624 4.3 26 7 1.1 -0.1 Rs-T-055 Tokyo Residential PRIME URBAN Mejiro 1,430. 1,361 1,780 3.7 418 1,354 1,810 3.6 455 30 1.7 -0.1 Rs-T-056 Tokyo Residential PRIME URBAN Kagurazaka 2,900 2,686 3,810 3.5 1,123 2,669 3,870 3.4 1,200 60 1.6 -0.1 Rs-T-057 Tokyo Rs-T-058 Tokyo Rs-T-060 Tokyo Rs-T-061 Tokyo Residential PRIME URBAN Sangen Jaya III 718 707 681 4.3 -26 708 682 4.2 -26 1 Residential PRIME URBAN Chitose Karasuyama 717 724 685 4.3 -39 723 707 4.2 -16 22 Residential PRIME URBAN Sangen Jaya Residential PRIME URBAN Minami Karasuyama 724 676 776 3.9 99 672 794 3.8 121 18 667 612 782 4.2 169 607 798 4.1 190 16 Rs-T-062 Tokyo Rs-T-063 Tokyo Rs-T-065 Tokyo Rs-T-066 Tokyo Rs-T-067 Tokyo Rs-T-068 Tokyo Rs-T-069 Tokyo Rs-T-070 Tokyo Rs-T-071 Tokyo Residential PRIME URBAN Karasuyama Galleria Residential PRIME URBAN Karasuyama Court 549 505 608 4.0 102 500 623 3.9 122 15 338 312 375 4.0 62 310 384 3.9 73 9 Residential PRIME URBAN Chitose Funabashi Residential PRIME URBAN Yoga Residential PRIME URBAN Shinagawa Nishi 746 689 759 4.1 69 685 761 4.0 75 2 1,390 1,298 1,820 3.5 521 1,291 1,820 3.5 528 0 494 505 451 4.3 -54 505 461 4.2 -44 10 03 2 2 NNOON 0.1 -0.1 3.2 -0.1 2.3 -0.1 2.0 -0.1 2.5 -0.1 2.4 -0.1 0.3 -0.1 0.0 0.0 2.2 -0.1 Residential PRIME URBAN Osaki 1,860 1,761 2,030 3.8 268 1,756 2,070 3.7 313 40 Residential PRIME URBAN Oimachi II 1,040 1,110 1,150 4.2 39 1,113 1,170 4.1 56 20 Residential PRIME URBAN Yukigaya Residential PRIME URBAN Omori 951 934 813 4.3 -121 932 761 4.2 -171 -52 52 905 835 913 3.9 77 828 920 3.8 91 7 Rs-T-072 Tokyo Residential PRIME URBAN Denenchofu Minami Rs-T-073 Tokyo Residential PRIME URBAN Nagahara Kamiikedai Rs-T-075 Tokyo Residential PRIME URBAN Nakano Kamitakada Rs-T-076 Tokyo Residential PRIME URBAN Takaido Rs-T-077 Tokyo Residential PRIME URBAN Nishi Ogikubo Rs-T-078 Tokyo Residential PRIME URBAN Nishi Ogikubo II 774 702 677 4.2 -25 696 681 4.1 -15 4 1,720 1,638 1,980 3.6 341 1,630 2,030 3.5 399 50 498 451 551 4.3 99 448 553 4.2 104 2 1,060 1,038 854 4.4 -184 1,034 873 4.3 -161 19 2911ONON 2.0 -0.1 1.7 -0.1 -6.4 -0.1 0.8 -0.1 0.6 -0.1 2.5 -0.1 0.4 -0.1 2.2 -0.1 414 394 453 4.0 58 393 462 4.0 68 9 2.0 0.0 1,790 1,722 2,120 3.5 397 1,716 2,160 3.4 443 40 1.9 -0.1 Rs-T-079 Tokyo Residential PRIME URBAN Otsuka 730 671 750 4.0 78 666 767 3.9 100 17 2.3 -0.1 Rs-T-080 Tokyo Residential PRIME URBAN Komagome Rs-T-081 Tokyo Residential PRIME URBAN Ikebukuro 437 437 429 4.4 -8 438 437 4.3 -1 8 1.9 -0.1 3,800 3,527 4,890 3.6 1,362 3,505 5,050 3.5 1,544 160 3.3 -0.1 Rs-T-082 Tokyo Residential PRIME URBAN Monzen Nakacho 2.420 2,247 2,680 4.0 432 2,240 2,750 3.9 509 70 2.6 -0.1 32 62#63Portfolio List Feb. 2022 Aug. 2022 Comparison b/w Feb.2022 and Aug.2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Appraisal value Cap rate Gain or Loss Appraisal value Cap rate (million yen) Rs-T-083 Tokyo Residential PRIME URBAN Kameido Rs-T-084 Tokyo Residential PRIME URBAN Sumiyoshi Rs-T-085 Tokyo Residential PRIME URBAN Mukojima Rs-T-086 Tokyo Residential PRIME URBAN Kinshi Koen Rs-T-087 Tokyo Residential PRIME URBAN Kinshicho Rs-T-088 Tokyo Residential PRIME URBAN Hirai Rs-T-089 Tokyo Residential PRIME URBAN Kasai Rs-T-090 Tokyo Residential PRIME URBAN Kasai II Rs-T-091 Tokyo Residential PRIME URBAN Kasai East Rs-T-093 Tokyo 779 (million yen) 695 (million yen) (%) 815 4.3 (million yen) 119 (million yen) 691 (million yen) (%) (million yen) (million yen) change (%) change (%) 831 4.2 139 16 2.0 -0.1 632 571 662 4.2 90 567 675 4.1 107 13 2.0 -0.1 528 514 496 4.4 -18 512 501 4.3 -11 5 1.0 -0.1 1,290 1,139 1,340 4.2 200 1,133 1,310 4.1 176 -30 -2.2 -0.1 758 689 783 4.5 93 688 784 4.4 95 1 0.1 -0.1 722 649 755 4.3 105 652 765 4.2 112 10 1.3 -0.1 640 574 670 4.3 95 571 682 4.2 110 12 1.8 -0.1 981 864 977 4.3 112 855 990 4.2 134 13 1.3 -0.1 1,140 1,017 1,330 4.2 312 1,007 1,350 4.1 342 20 1.5 -0.1 Residential PRIME URBAN Itabashi Kuyakushomae 1,080 972 1,340 4.4 367 963 1,360 4.3 396 20 1.5 -0.1 Rs-T-094 Tokyo Residential PRIME URBAN Asakusa 384 376 322 4.4 -54 377 342 4.3 -35 20 6.2 -0.1 Rs-T-095 Tokyo Residential PRIME URBAN Machiya South Court 1,910 1,816 2,280 4.4 463 1,807 2,340 4.3 532 60 2.6 -0.1 Rs-T-096 Tokyo Residential PRIME URBAN Musashi Koganei 1,910 1,928 1,940 4.8 11 1,939 1,950 4.7 10 10 0.5 -0.1 Rs-T-098 Tokyo Rs-T-099 Tokyo Rs-T-100 Tokyo Rs-T-101 Tokyo Rs-T-102 Tokyo Rs-T-097 Tokyo Residential PRIME URBAN Musashino Hills Residential PRIME URBAN Koganei Honcho 1,280 1,307 1,410 4.7 102 1,308 1,420 4.6 111 10 0.7 -0.1 791 737 900 4.6 162 735 906 4.5 170 6 0.7 -0.1 Residential PRIME URBAN Kumegawa Residential PRIME URBAN Musashi Kosugi comodo Residential PRIME URBAN Kawasaki 1,520 1,320 1,630 4.8 309 1,304 1,640 4.7 335 10 0.6 -0.1 1,940 1,930 2,430 4.5 499 1,923 2,470 4.4 546 40 1.6 -0.1 962 947 1,080 4.5 132 955 1,080 4.4 124 0 0.0 -0.1 Residential PRIME URBAN Shinyurigaoka 1,020 920 1,310 4.4 389 917 1,330 4.3 412 Rs-T-103 Tokyo Residential PRIME URBAN Tsurumi Teraya 493 492 486 4.5 -6 489 497 4.4 7 Rs-T-105 Tokyo Rs-T-106 Tokyo Rs-T-107 Tokyo Rs-T-108 Tokyo Residential PRIME URBAN Urayasu 804 738 960 4.1 221 734 1,000 4.0 265 40 Residential PRIME URBAN Gyotoku I 633 592 640 4.2 47 590 671 4.1 80 Residential PRIME URBAN Gyotoku II 730 683 875 4.2 191 683 743 4.1 59 Residential PRIME URBAN Gyotoku Ekimae 488 439 558 4.1 118 436 570 4.0 133 Rs-T-109 Tokyo Rs-T-110 Tokyo Rs-T-111 Tokyo Rs-T-112 Tokyo Residential PRIME URBAN Gyotoku Ekimae II Residential PRIME URBAN Gyotoku III 469 447 610 4.2 162 446 641 4.1 194 747 717 988 4.2 270 714 1,030 4.1 315 Residential PRIME URBAN Nishi Funabashi 761 656 914 4.2 257 647 958 4.1 310 Residential PRIME URBAN Kawaguchi 1,580 1,462 1,760 4.8 297 1,452 1,790 4.7 337 Rs-T-113 Tokyo Rs-T-114 Tokyo Residential PROUD FLAT Hatchobori Residential PROUD FLAT Itabashi Honcho 920 909 1,210 3.4 300 905 1,250 3.3 344 720 692 942 3.7 249 686 967 3.6 280 Rs-T-115 Tokyo Residential PRIME URBAN Meguro Mita 1,058 1,110 1,130 3.9 19 1,108 1,140 3.8 31 Rs-T-117 Tokyo Rs-T-116 Tokyo Residential Fukasawa House Towers H&I Residential PRIME URBAN Toyosu 7,140 6,957 8,260 3.8 1,302 6,953 8,460 3.7 1,506 200 5,290 4,979 5,980 4.0 1,000 4,950 6,100 3.9 1,149 Rs-T-118 Tokyo Residential PRIME URBAN Nihonbashi Kayabacho 2,850 2,747 3,270 3.9 522 2,738 3,340 3.8 601 Rs-T-119 Tokyo Residential PRIME URBAN Yoga II 1,320 1,250 1,400 3.7 149 1,246 1,430 3.6 183 Rs-T-120 Tokyo Rs-T-121 Tokyo Rs-T-122 Tokyo Residential PROUD FLAT Omori III Residential PROUD FLAT Kinshicho Residential PRIME URBAN Musashi-Koganei II 1,310 1,228 1,490 4.0 261 1,220 1,540 3.9 319 Residential PRIME URBAN Gakugei Daigaku Parkfront 1,300 1,361 1,450 3.8 88 1,357 1,480 3.7 122 1,110 1,107 1,410 3.6 302 1,101 1,450 3.5 348 Rs-T-123 Tokyo Rs-T-124 Tokyo Rs-T-125 Tokyo Residential PROUD FLAT Sotokanda Rs-T-126 Tokyo Residential PROUD FLAT Noborito Rs-T-127 Tokyo Residential PROUD FLAT Yoyogi Hachiman Rs-T-128 Tokyo Residential PROUD FLAT Nakaotiai 785 777 1,010 3.6 232 771 1,040 3.5 268 Residential PROUD FLAT Sangenjaya II 2,750 2,763 3,260 3.6 496 2,752 3,350 3.5 597 2,280 2,300 2,840 3.5 539 2,290 2,890 3.4 599 1,216 1,220 1,470 4.2 249 1,212 1,530 4.1 317 966 977 1,180 3.5 202 973 1,210 3.4 236 844 851 969 3.7 117 847 994 3.6 146 2121372282235532 1.5 -0.1 2.3 -0.1 4.2 -0.1 4.8 -0.1 -15.1 -0.1 2.2 -0.1 5.1 -0.1 42 4.3 -0.1 44 4.8 -0.1 30 1.7 -0.1 40 3.3 -0.1 2.7 -0.1 10 0.9 -0.1 2.4 -0.1 2.0 -0.1 70 2.1 -0.1 30 2.1 -0.1 50 3.4 -0.1 30 2.1 -0.1 40 2.8 -0.1 30 3.0 -0.1 90 2.8 -0.1 50 1.8 -0.1 60 4.1 -0.1 30 2.5 -0.1 2.6 -0.1 63#64Portfolio List Feb. 2022 Aug. 2022 Comparison b/w Feb.2022 and Aug.2022 Area Use Property name Acquisition price Book value Appraisal value Cap rate Gain or Loss Book value Appraisal value Cap rate Gain or Loss Appraisal value Cap rate (million yen) (million yen) (million yen) (%) Rs-T-129 Tokyo Rs-T-130 Tokyo Rs-T-131 Tokyo Rs-T-132 Tokyo Rs-T-133 Tokyo Residential PROUD FLAT Shibuya Tomigaya Residential PROUD FLAT Miyazakidai Residential PROUD FLAT Asakusabashi III 3,960 4,023 4,800 3.7 (million yen) 776 (million yen) (million yen) (%) 4,010 4,930 3.6 (million yen) 919 (million yen) change (%) change (%) 130 2.7 -0.1 1,390 1,438 1,580 4.2 141 1,430 1,620 4.1 189 40 2.5 -0.1 1,230 1,267 1,310 3.9 42 1,261 1,340 3.8 78 30 2.3 -0.1 Residential PROUD FLAT Togoshi-Koen 2,580 2,654 2,750 3.9 95 2,645 2,820 3.8 174 70 2.5 -0.1 Rs-T-134 Tokyo Rs-S-001 Other Rs-S-002 Other Rs-S-003 Other Rs-S-005 Other Rs-S-006 Other Residential PROUD FLAT Togoshi-Ginza Residential PRIME URBAN Higashi Nakano Court Residential PROUD FLAT Itsutsubashi Residential PROUD FLAT Kawaramachi Residential PROUD FLAT Shin Osaka 2,550 2,633 2,700 3.9 66 7,020 7,268 8,250 3.5 981 652 553 708 4.8 154 545 705 4.7 159 -3 -0.4 -0.1 735 616 554 4.7 -62 608 554 4.6 -54 0 0.0 -0.1 1,620 1,377 2,060 4.2 682 1,360 2,110 4.1 749 50 2.4 -0.1 Residential PRIME URBAN Kita Juyo Jo Residential PRIME URBAN Odori Koen I 274 239 285 4.4 45 236 291 4.3 54 6 2.1 -0.1 502 435 531 4.5 95 430 540 4.4 109 9 1.7 -0.1 Rs-S-007 Other Residential PRIME URBAN Odori Koen II 334 294 326 4.5 31 290 333 4.4 42 7 2.1 -0.1 Rs-S-008 Other Residential PRIME URBAN Kita Juichi Jo 547 467 576 5.0 108 462 580 4.9 117 4 0.7 -0.1 Rs-S-009 Other Residential PRIME URBAN Miyanosawa 475 401 482 5.1 80 396 482 5.0 85 0 0.0 -0.1 Rs-S-010 Other Rs-S-011 Other Rs-S-012 Other Rs-S-013 Other Rs-S-014 Other Rs-S-015 Other Rs-S-016 Other Residential PRIME URBAN Odori Higashi Residential PRIME URBAN Chiji Kokan Residential PRIME URBAN Maruyama Residential PRIME URBAN Kita Nijuyo Jo Residential PRIME URBAN Sapporo Idaimae 394 339 416 5.1 76 335 416 5.0 80 0 0.0 -0.1 249 209 259 5.0 49 206 252 4.9 45 -7 -2.7 -0.1 229 197 215 5.0 17 195 215 4.9 19 0 0.0 -0.1 437 368 453 5.1 84 363 456 5.0 92 3 0.7 -0.1 616 527 622 5.0 94 521 631 4.9 109 9 1.4 -0.1 Residential PRIME URBAN Sapporo Riverfront 4,480 3,941 4,740 5.1 798 3,915 4,740 5.0 824 0 0.0 -0.1 Residential PRIME URBAN Kita Sanjo Dori 1,730 1,495 1,920 5.0 424 1,479 1,950 4.9 470 30 1.6 -0.1 Rs-S-017 Other Residential PRIME URBAN Nagamachi Icchome 1,140 998 974 5.1 -24 987 971 5.0 -16 -3 -0.3 -0.1 Rs-S-018 Other Residential PRIME URBAN Yaotome Chuo 466 393 356 5.2 -37 388 346 5.1 -42 -10 -2.8 -0.1 Rs-S-019 Other Residential PRIME URBAN Tsutsumidori Amamiya 949 927 984 4.8 56 925 1,010 4.7 84 26 2.6 -0.1 Rs-S-020 Other Rs-S-021 Other Rs-S-022 Other Residential PRIME URBAN Aoi 712 646 674 4.6 27 640 679 4.5 38 Residential PRIME URBAN Kanayama 553 478 586 4.7 107 472 581 4.6 108 Residential PRIME URBAN Tsurumai 1,020 863 1,020 4.7 156 851 1,020 4.6 168 Rs-S-023 Other Rs-S-024 Other Residential PRIME URBAN Kamimaezu 1,590 1,399 1,650 4.7 250 1,385 1,670 4.6 284 Residential PRIME URBAN Izumi 3,770 3,322 3,910 4.6 587 3.285 3,890 4.5 604 Rs-S-029 Other Residential PRIME URBAN Sakaisuji Honmachi 1,810 1,589 2,240 4.0 650 1,572 2,290 3.9 717 550225 0.7 -0.1 -0.9 -0.1 0.0 -0.1 1.2 -0.1 -0.5 -0.1 2.2 -0.1 Rs-S-030 Other Residential PRIME URBAN Hakata 588 519 635 4.7 115 513 645 4.6 131 10 1.6 -0.1 Rs-S-031 Other Residential PRIME URBAN Yakuin Minami 265 232 300 4.6 67 229 305 4.5 75 5 1.7 -0.1 Rs-S-032 Other Residential PRIME URBAN Kashii 398 336 280 4.9 -56 331 287 4.8 -44 7 2.5 -0.1 Rs-S-033 Other Residential PRIME URBAN Hakata Higashi 622 537 477 4.8 -60 529 485 4.7 -44 8 1.7 -0.1 Rs-S-034 Other Rs-S-036 Other Residential PRIME URBAN Chihaya Residential Serenite Shinsaibashi Grande 604 534 514 4.8 -20 528 522 4.7 -6 8 1.6 -0.1 5,567 5,638 6,100 3.8 461 5,602 6,240 3.7 637 140 2.3 -0.1 211,617 190,333 226,582 - 36,248 199,192 241,465 42,272 3,933 1.7 Ht-S-001 Other Ht-S-002 Other Hotels Hotel Vista Sapporo Odori 3,600 3,665 3,730 4.4 64 3,648 3,740 4.4 91 10 0.3 0.0 Hotels Comfort Inn Naha Tomari Port 2,650 2,683 2,520 4.9 -163 2,671 2,520 4.9 -151 0 0.0 0.0 6,250 6,348 6,250 -98 6,320 6,260 -60 10.0 0.2 Ryotokuji University Shin- Ot-T-001 Tokyo Other Urayasu Campus (Land) (1) 4,900 5,136 5,450 3.9 313 5,136 5,460 3.9 323 10 0.2 0.0 4,900 5,136 5,450 313 5.136 5,460 323 10 0.2 1,091.759 1,054,640 1,247,408 192,767 1,067,176 1,285,418 218,241 20,260 1.6 (*1) Capitalization rates are discount rates by DCF method. (*2) Period-to-period change in appraisal value is calculated excluding properties acquired in the August 2022 FP. 64#65Unitholders Number of investment units 0% 20% 40% 60% Individuals and others 307,697 (6.5%) Feb-22 (13th FP) Financial institutions (Incl. Financial instruments business operators) 2,858,115 (60.6%) Total number of investment units issued 4,715,200 Aug-22 (14th FP) Total number of Individuals and others 308,927 (6.6%) Financial institutions (Incl. Financial instruments business operators) 2,854,418 (60.5%) 80% 100% Breakdown of financial institutions (unit) Feb.2022 (13th Period) Aug.2022 (14th Period) Other domestic corporations 333,074 (7.1%) Banks 139,231 3.0% 140,569 3.0% Foreign corporations 1,216,314 (25.8%) Trust Banks 2,203,168 46.7% 2,196,737 46.6% Life Insurance Companies 47,894 1.0% 68,391 1.5% Non-Life Insurance Companies 2,765 0.1% 2,765 0.1% Other domestic corporations 321,590 (6.8%) Other Financial Institutions, Financial Instruments Business Operators Total 465,057 2,858,115 9.9% 60.6% 445,956 9.5% 2,854,418 60.5% Foreign corporations 1,230,265 (26.1%) Top 10 unitholders investment units issued 4,715,200 Unitholder composition Unitholders Unit Ratio 1 Custody Bank of Japan, Ltd. (Trust Account) 1,205,090 25.6% 2 The Master Trust Bank of Japan, Ltd. (Trust Account) 735,229 15.6% 0% 20% 40% 60% 80% 100% 3 Nomura Real Estate Development Co., Ltd. 210,671 4.5% 4 The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) 205,331 4.4% Feb-22 (13th FP) Total Unitholders 31,119 people Financial institutions (Incl. Financial instruments business) 238 (0.8%) Other domestic corporations 515 (1.7%) Foreign corporations 640 (2.1%) Individuals and others 29,726 (95.5%) 5 SSBTC CLIENT OMNIBUS ACCOUNT 93,414 2.0% 6 STATE STREET BANK WEST CLIENT-TREATY 505234 86,605 1.8% 7 JAPAN SECURITIES FINANCE CO., LTD. 74,110 1.6% Individuals and others 29,534 (95.6%) Aug-22 (14th FP) Total Unitholders 30,900 people Financial institutions (Incl. Financial instruments business) 234 (0.8%) Other domestic corporations 503 (1.6%) Foreign corporations 629 (2.0%) 9 Mizuho Securities Co., Ltd. 10 JP MORGAN CHASE BANK 385781 8 SMBC Nikko Securities Inc. 69,037 1.5% 68,837 1.5% 45,659 1.0% Total 2,793,983 59.3% 65 55#66Market Review Leasing Market~ Office (%) 10.00 Vacancy Rate Tokyo Central Five Wards (\/Tsubo) 22,901 9.43 23,000 22,000 8.00 6.49 21,000 20,000 6.00 19,000 18,000 4.00 17,000 2.49 2.00 16,000 1.49 15,000 14,000 0.00 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Average Monthly Rent Tokyo Central Five Wards 16,207 Office Building Supply Tokyo Central Five Wards ('000 Tsubo) 23,014 600 ■New supply Forecast 500 400 20,250 300 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Source: Prepared by NREAM based on data from Miki Shoji Co., Ltd. Residential Net Population Inflow (12-month moving average) 200 100 0 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 Source: Prepared by NREAM based on results of surveys by brokers, etc. Rent and Vacancy Rate Matrix (Tokyo Central Five Wards) Rent(¥) 23,000 Q1'20 1.5% Previous peak Q2 '08 (Number Of people) 10,000 Tokyo Osaka (Right axis) Aichi (Right axis) (Number Of people) 09Q1=100 3.49% Q2'22 Rental Condominium Rent Index (Tokyo's 23 wards) Single type (18 m² - 30 m²) Compact type (30 m² 60 m²). 22,000 6.39% 8,000 125 2,000 Family type (60 m² - 100 m²) 21,000 20,000 19,000 Q3 '01 3.24% Q2 '03 6,000 8.57% 4,000 1,500 115 1,000 18,000 17,000 2,000 500 105 16,000 Previous bottom Q2 '12 9.43% 15,000 0 1 2 3 4 5 6 7 8 9 10 95 Vacancy Rate (%) -2,000 -500 '17 '18 '19 '20 '21 '22 '17 '18 19. 120 '21 122 Source: Prepared by NREAM based on data from Miki Shoji Co., Ltd. Source: Prepared by NREAM based on data from Ministry of Internal Affairs and Communications Source: Prepared by NREAM based on data from At Home Co., Ltd. and Sumitomo Mitsui Trust Research Institute Co., Ltd. 99 66#67Market Review Leasing Market~ Retail Retail and Restaurant Sales Volume by Store Type Year-on-Year Change Hotel Change in Total Number of Overnight Stays Nationwide Jan. '22 Feb. '22 Mar. '22 ■ Apr. '22 ■May '22 Jun. '22 ■Jul. '22 ■Aug. '22 (Min) 80 40% 20% 0% -20% -40% -60% -80% -100% Supermarkets 09 60 40 40 Japanese ■Foreign Visitor Drugstores General merchandise stores (GMS) Convenience stores Department stores 20 Restaurants total Pubs izakaya Source: Prepared by NREAM based on data from the Ministry of Economy, Trade and Industry and various organizations in the respective industries Note: The figures represent a portion of year-on-year change in nationwide sales, including preliminary figures. Drugstores, restaurants total, and pubs/izakaya are on an all-shops basis. All others are on an existing-shop basis. 0 '17 '18 '19 '20 '21 '22 Source: Prepared by NREAM based on data from the Japan Tourism Agency Note: Preliminary figures are included Logistics Large-Scale Rental Logistics Facility Supply and Demand in the Greater Tokyo Area as of Q2 2022 Large-Scale Rental Logistics Facility Supply and Demand in Kinki Area as of Q2 2022 Room Occupancy Rates (nationwide, facilities with 10 or more employees) New supply New demand Forecast 20% (Tsubo) 400,000 Vacancy rate (overall) (right axis) Vacancy rate (a year or more after completion) (right axis) Forecast (%) 20% 90 963,000 80 15% 15% 300,000 270,000 70 60 10% 50 10% 200,000 40 5% $60,000 2.1% 30 4.4% 5% 100,000 0.7% 20 0% 10 -5% 0 '16 '17 '18 '19 '20 '21 '22 '23 '17 (Tsubo) New supply 1,100,000 1,000,000 New demand Vacancy rate (overall) (right axis) Vacancy rate (a year or more after 900,000 completion) (right axis) 800,000 700,000 705,000 626,000 600,000 500,000 400,000 300,000 200,000 100,000 1.3% 0 0% '16 '17 '18 '19 '20 '21 '22 '23 Source: Prepared by NREAM based on data from CBRE '18 Resort '19 '20 Business City '21 '22 Source: Prepared by NREAM based on data from CBRE Source: Prepared by NREAM based on data from the Japan Tourism Agency Note: Preliminary figures are included 67#68(pts)Above 0=Good (%) • Market Review ~ Sales Market Real Estate Market Condition⚫ Other~ Expected Cap Rate 10-Year Government Bond Interest Rate and Expected Cap Rate 10-year government bonds compound interest Market Condition and Transaction Volume Land Price/ Electricity Futures Prices Proportion of Rise (Decline) in Land Prices in the Greater Tokyo Area Real Estate Market Condition Increase over 6% (%) Flat Increase b/w 3% and 6% Increase b/w 0% and 3% Decrease 100 5 Expected cap rate of class A office buildings in Marunouchi and Otemachi 40 80 4.5 60 4 3.5 3 2.5 2 1.5 1 40 20 20 0 0 10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1: 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3. 18Q1 18Q3 19Q1 19Q3 20Q1 20Q3 21Q1 21Q3 22Q1 -20 Residential and housing lot sales 0.5 Logistics (residential lot) 0 Building leasing -40 -0.5 '15 '16 '17 '18 '19 '20 '21 '22 '15 '16 '17 '18 '19 '20 '21 '22 Proportion of Rise (Decline) in Land Price in the Osaka Area Increase over 6% (%) Flat 100 Increase b/w 3% and 6% Increase b/w 0% and 3% Decrease 50 50 Source: Prepared by NREAM based on data from the Japan Real Estate Institute and the Ministry of Finance Note: Figures are as of each quarter. Expected cap rate shows median figures. Expected Cap Rate by Real Estate Investor Bottom (%) 6.0 Office (Class A office building in Marunouchi, Tokyo) Residential (studio type in Jonan, Tokyo) Retail (urban central stores in Ginza, Tokyo) Logistics (Multi-tenant type in Koto Ward, Tokyo) Hotel (types specializing in lodging in Tokyo) 5.5 5.0 4.5 4.0 40 3.5 3.0 '15 '16 '17 '18 '19 '20 '21 '22 0 Source: The Land Institute of Japan 10Q1 10Q3 11Q1 SOLL 12Q1 12Q3 13Q1) 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3 18Q1 18Q3 19Q1 19Q3 20Q1 20Q3 21Q1 21Q3 22Q1 Source: Prepared by NREAM based on data from the Ministry of Land, Infrastructure, Transport and Tourism Changes in Electricity Futures Prices (as of Sep. 22, 2022) Real Estate Transaction Cycle in Tokyo Rise 20 15 Number of transactions YoY change(Y) Sep.'12 10 Mar. '22 5 40 Sep. '21 Sep.'19 Land price YoY change (%) 30 10 20 30 -30 -20 Fall Sep.'08 Sep.'07 -10 Sep. '20 -15 -20 Peak Source: Prepared by NREAM based on data from the Japan Real Estate Institute Note: Expected cap rate shows median figures. Source: Prepared by NREAM based on data from the Ministry of Justice and the Japan Real Estate Institute Note: Land prices are annualized. The year-on-year rate of change of the number of transactions (from October of the previous year to September of the target year) and the urban land price (as of September of the target year) are plotted. -Eastern Japan Base Load (Yen/KWH) Western Japan Base Loan Futures prices for future contact months 50 20 10 0 '21 '22 '23 '24 Source: Prepared by NREAM based on data from the Tokyo Commodity Exchange Notes: Eastern Japan is a 50 Hz area and Western Japan is a 60 Hz area. Past values are average futures prices with the following month as the contract month. 68 69#69Organization and IR Activities Asset Management Company Nomura Real Estate Asset Management Co., Ltd. Company Overview Established Office Location Shareholder Employees and Officers Website Organization Structure January 2003 8-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023 Japan Nomura Real Estate Holdings, Inc. (100%) 168(including 6 Executive Officers and 2 Statutory Auditors) *As of April 1,2022 https://www.nre-am.co.jp/english/ Investment Committee Compliance Committee Risk Management Committee NPR Valuation Committee Project Screening Committee General Meeting of Shareholders Board of Directors President & CEO Statutory Auditors | Chief Strategy Officer NMP Investment Management Group Nomura Real Estate Master Fund, Inc. - IR Activities We are committed to SDGs in addition to its operational status and strive to make disclosures easy for investors to understand. Official Website About NMF Strength of Portfollo ESG NMF Finance Policies and Management Structure International Initiatives and Certifications Materiality Environmental Measures Stakeholder Engagement GRI Standards Raising the Proportion of "Green"Properties in Our Portfolio Social Responsibility Governance Green Finance ESG Disclosure Policy and Reporting Framework HOME ESG Materiality Materiality, Policy and Target Please refer to KPI Actual Results Management Sheet (18.2KB) Supporting SDGS Raising the proportion of "green" properties in our investment portfolio Investor Relations Target Raise the ratio of properties acquired green certification (with three stars or more or aquivalent to) to 70% by 2030 XPE Ratio of green certification (with three stars or more or equivalent Ratio of Green Certification 13 DB: Green Building Certification (the stars or man) or BELS Certification (these stars or mont, CASBEE higher) [ESG Annual Report] (+ Corporate Planning International Business Planning Legal & Compliance Internal Audit Finance & Accounting Client Relations & Marketing Acquisitions Investment Management Planning International Initiatives and Certification Raising the Proportion of "Green" Properties Reported Location in Our Portfolio Enviroment Target Countering dimate change Achieve 40% reduction in greenhouse gas (GHG) emisions per floor area (intensity) from our portfolio by 2030compared with the 2016 level GHG emisions per floor area (intensity) Reported Lacation Environmental Measures/Counting Climate Change Countering water resources Target Achieve 10% reduction in water use per floor area (intensity) in our portfolio by 2030 compared with the 2016 level Private Fund Management Water use per floor area (intensity) Fund Management Asset Management I Asset Management II IR Activities ☐ NPR Investment Management 13 ESG Annual Report Reported Location Environmental Measures/Preserving Water Resources Ensuring the safety and security of tenants and improving user comfort Target Improve tenant satisfaction by conducting a regular survey of MASTER FUND IR tour of the financial results on Feb.2022 period for domestic institutional investors (Conducted by telephone conference) ■ One-on-one IR meetings with overseas investors in North America, Europe and in Asia (Conducted by telephone conference) 69 69 ...#70MASTER FUND This document has been prepared for the purpose of provision of information only, and should not be construed as an offer, solicitation or commercial conduct of any nature associated with any specific products. Investors wishing to purchase the investment units of Nomura Real Estate Master Fund, Inc. should contact their own securities brokers or dealers. A fee may be charged by your financial instruments business operator in relation to the sale or purchase of investment units. For management fees that the Fund pays to Nomura Real Estate Asset Management Co., Ltd., please refer to the terms and conditions of the Fund, etc. The forward-looking statements with respect to the future financial results contained in this document are based on the current facts about the investment policy of the Fund, applicable laws and regulations, the market environment, business practice, etc., as of the preparation date of this document and do not reflect or consider any changes in the circumstances after the preparation date. These forward-looking statements inherently reflect uncertainty about known risks as well as unknown risks and other factors and may deviate from the actual operating and management results, financial conditions, etc., of the Fund. Investment in real estate investment securities may result in a loss due to a decline in the transaction price caused by, for example, changes in the price or the revenue-generating capability of the underlying properties or deterioration of the financial conditions of the issuer. Although the information contained in this document is intended to be complete and thorough, there is no assurance of precision and safety of the same. Please note that the contents of this 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 of the information contained in this document without express prior written consent.