Nomura Real Estate : Publication of Financial Report 2020

Financial Report

For the Year Ended March 31, 2020

2020

Management's Discussion and Analysis 1

Consolidated Balance Sheets 19

Consolidated Statements of Income 21

Consolidated Statements of Comprehensive Income 22

Consolidated Statements of Changes in Net Assets 23

Consolidated Statements of Cash Flows 24

Notes to Consolidated Financial Statements 25

Independent Auditors' Report 62

Management's Discussion and Analysis

Progress and Results of Business

In the real estate market, the residential market saw sales prices continue to rise while supply volume declined due to factors such as intensification of competition for land acquisition, and there continued to be a significant impact on sales based on differences in the levels of the convenience of the regions and the properties themselves. In the office market, there was a trend of many deals due to the need for more space and relocations in connection with reconstruction of buildings, and declining vacancy rates and increasing rent revenue continued nationwide. Also, in the real estate investment market, the total market size steadily expanded thanks to the favorable domestic real estate market conditions.

However, the impact of novel coronavirus disease ("COVID-19") on the real estate market has emerged through a decline in hotel occupancy rates and decreased sales of retail facilities.

In the Group's business, efforts have been focused mainly on hotels, fitness clubs and retail facilities from the perspec-tive of actively preventing the spread of COVID-19 based on requests from the national government and local governments, but the impact on the results for the fiscal year under review was insignificant.

In this business environment, the Nomura Real Estate Group (the "Group") posted record operating revenue and profit with the following consolidated performance for the fiscal year ended March 31, 2020: Operating revenue of ¥676,495 million, which represents an increase of 1.2% year on year; operating profit of ¥81,905 mil-lion, an increase of 3.5%; business profit*1 of ¥82,833 million, an increase of 4.0%; ordinary profit of ¥73,077 million, an increase of 5.4%; and profit attributable to owners of parent of ¥48,886 million, an increase of 6.6%.

From the fiscal year ended March 31, 2020, the Leasing Business Unit has been renamed the Commercial Real Estate Business Unit. Nomura Real Estate Life & Sports Co., Ltd., and Nomura Real Estate Wellness Co., Ltd. and the senior business of Nomura Real Estate Development Co., Ltd., which had been classified under the Property & Facility Management Business Unit, have been reclassified under the Commercial Real Estate Business Unit and the Residential Development Business Unit, respectively. The rental housing business of Nomura Real Estate Development Co., Ltd., which had been classified under the Commercial Real Estate Business Unit, has been reclassified under the Residential Development Business Unit. The presentation of comparative financial information for the previous fiscal year reflects the changes made in these reclassifications.

As a result of the transfer of a portion of shares in NF Power Service Co., Ltd., the Company ceased being a consolidated sub-sidiary on April 1, 2019.

Operating Results by Segment z An overview of segment achievements is given below:

Residential Development Business Unit

Operating revenue in the Residential Development Business Unit totaled ¥334,710 million, which represents a decrease of 10.8% year on year, and business profit totaled ¥24,905 million, a decrease of 0.5% year on year, resulting in a decrease in operating revenue and business profit almost at the same level as the previ-ous fiscal year.

Although there was a decrease in the number of housing units sold in the housing sales business, the gross profit margin ratio for this business improved to 20.4% (19.1% in the previous fiscal year).

In regard to housing sales, 4,739 units were recorded as sales (a decrease of 1,151 units year on year), including PROUD Ebisu Hillside Garden (Shibuya-ku, Tokyo), PROUD CITY Hiyoshi Residence I (Kohoku-ku, Yokohama-shi, Kanagawa) for condo-miniums, and PROUD SEASON Setagaya Kinuta (Setagaya-ku, Tokyo) for detached housings. As of the end of the fiscal year under review, the number of completed housing inventories totaled 509 units (an increase of 233 units compared with the end of the previous fiscal year) and the number of contracted but not recorded housing units totaled 2,611 units (a decrease of 385 units com-pared with the end of the previous fiscal year).

In development projects in regional core cities in Japan and overseas, the Group has engaged in joining a redevelopment project in Takasaki Station East Exit (Takasaki-shi, Gunma) in Japan and expanding its business in Ho Chi Minh City, Vietnam, and Changzhou, China.

Furthermore, the Group is promoting the creation of housing aimed at net zero energy use through insulation, power saving and power generation in PROUD Takadanobaba (Shinjuku-ku, Tokyo) which was selected by the Ministry of the Environment for the High-rise ZEH-M (Net Zero Energy House - Condominium) Support Project*2.

z Commercial Real Estate Business Unit

Operating revenue in the Commercial Real Estate Business Unit totaled ¥215,820 million, which represents an increase of 25.8% year on year, and business profit totaled ¥39,238 million, an increase of 3.1%, resulting in increases in both operating revenue and business profit compared with the previous fiscal year.

This was mainly due to increases in revenues of properties for sales resulting from the sale of properties to REITs, etc., in the Investment Management Business Unit and strategic replacement of assets aimed at the creation of a highly competitive rental asset portfolio.

Construction of facilities including the PMO Nishishinjuku office building (Shinjuku-ku, Tokyo), the Landport Narashino logisticsfacility (Narashino-shi, Chiba) and the GICROS GINZA GEMS retail facility (Chuo-ku, Tokyo) have been completed.

Furthermore, in order to respond to changes in diversifying cus-tomer needs, the Group launched and began operation of the new brands of H¹O serviced small offices and H¹T satellite shared offices based on the concept of "humans first" in the office business, and the MEFULL service-specialized retail facilities and SOCOLA com-munity-based retail facilities in the retail business.

In overseas business, the Group acquired the entirety of ZEN PLAZA CO., LTD, which owns and operates the Zen Plaza office building in Ho Chi Minh City, Vietnam, and made it into a wholly-owned subsidiary in June 2019.

Furthermore, the Group is engaged in the resolution of social issues and provision of new value through business activities, such as office brands meeting changes in companies' needs and work-styles (PMO, H¹O and H¹T), efforts to eliminate CO2 emissions due to electric power purchased utilizing the "CO2 Zero Plan" in the NOHGA HOTEL Series and Hotel Niwa, and Nomura Real Estate Life & Sports Co., Ltd., which operates the MEGALOS sports club receiving the industry's first award for the Tokyo Sports Promotion Model Company.

z Investment Management Business Unit

Operating revenue in the Investment Management Business Unit totaled ¥12,059 million, which represents an increase of 25.1% year on year, and business profit totaled ¥7,149 million, an increase of 19.8%, resulting in increases in both operating revenue and business profit compared with the previous fiscal year.

This was mainly due to an increase in assets under manage-ment at the domestic asset manager Nomura Real Estate Asset Management Co., Ltd. and the full year contribution of revenue and profit of Lothbury Investment Management Limited, a real estate investment manager in the UK which became a consolidated sub-sidiary of the Company in the previous fiscal year.

Assets under management steadily increased in the core domestic REIT business, such as Nomura Real Estate Master Fund, Inc. and Nomura Real Estate Private REIT, Inc. acquiring a total of 15 properties (total transaction amount of ¥55,081 mil-lion) including PMO Akihabara North (Taito-ku, Tokyo), Landport Narashino (Narashino-shi, Chiba), GEMS Sangenjaya (Setagaya-ku, Tokyo) and PROUD FLAT Shibuya Tomigaya (Shibuya-ku, Tokyo) from Nomura Real Estate Development Co., Ltd., in addition to progress in the formation of private equity funds meeting the needs of investors.

Furthermore, Nomura Real Estate Asset Management Co., Ltd. has been actively engaged in the provision of new value including consideration of ESG (environment, society and governance) in realestate investment and received the Principles for Financial Action for the 21st Century award from the Minister of the Environment (Best Practice Example). This is because Nomura Real Estate Master Fund, Inc., which is entrusted with investment, obtained and registered thirdparty certification for the "Eco Action 21" environmental management system, which is a first for J-REITs*1, and was recognized for contributing to the promotion of efforts for making REITs and the entire real estate industry greener.

z Property Brokerage & CRE Business Unit

Operating revenue in the Property Brokerage & CRE*2 Business Unit totaled ¥39,110 million, which represents an increase of 4.9% year on year, and business profit totaled ¥9,109 million, an increase of 11.5%, resulting in an increases in operating revenue and busi-ness profit compared with the previous fiscal year.

This was mainly due to an increase in brokerage commission fees, resulting from increases in the number of transactions and total transaction value in retail business.

We have expanded the business areas in the retail business by opening the Yotsuya Center (Shinjuku-ku, Tokyo), Akabane Center (Kita-ku, Tokyo), Kyoto Center (Shimogyo-ku, Kyoto-shi, Kyoto) and Kobe Sannomiya Center (Chuo-ku, Kobe-shi, Hyogo), bringing the total number of branch stores to 85, and in the wholesale business by opening the Hiroshima Sales Office (Naka-ku, Hiroshima-shi, Hiroshima) and the Sendai Sales Office (Aoba-ku, Sendai-shi, Miyagi).

Furthermore, Nomura Real Estate Urban Net Co., Ltd., which operates retail business, is engaged in the provision of new services to customers by actively utilizing ICT (Information and Communication Technology) such as introducing "VR Home Staging" that uses virtual reality technology utilizing AI to reproduce spaces within residential properties and coordinating the furniture in rooms.

In addition, the Company was also ranked first in both the "Detached housing sales" and "Condominium purchases" rankings of real estate brokerage companies in the 2019 Oricon Customer Satisfaction Survey for the fourth consecutive year.

z Property & Facility Management Business Unit

Operating revenue in the Property & Facility Management Business Unit totaled ¥92,982 million, which represents an increase of 1.8% year on year, and business profit totaled ¥8,181 million, an increase of 9.6%, resulting in increases in both revenue and business profit compared with the previous fiscal year.

This was mainly due to an increase in revenue of property and facility management associated with the increase in the number of residential properties under management and an increase in

*1: Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions

*2: The High-rise ZEH-M (Net Zero Energy House - Condominium) Support Project included in projects to promote the reduction of carbon emissions through the FY2019 ZEH (Net Zero

Energy House) subsidy for business expenses for reducing carbondioxide emissions.

*1: J-REIT: Real Estate Investment Trust Securities listed on Japanese stock exchanges

*2: CRE: Corporate Real Estate. Real estate strategy support services for enterprises (such as consulting on the effective utilization and trading of real estate)

revenue from construction orders due to the provision of re:Pre-mium large-scale repair works providing long-term warranties for PROUD condominiums.

In addition, as of the end of the fiscal year under review, the number of buildings under management was 723 buildings (down 9 from the end of the previous fiscal year), and the number of condo-miniums under management was 182,230 units (up 4,648).

Five facilities such as Landport Ome II commenced operation in the solar power generation business, and the number of renewable energy facilities using the rooftops of logistics facilities reached 18.

Furthermore, in Nomura Real Estate Partners Co., Ltd., initia-tives that contributed to the creation of high-quality housing stock were promoted through business activities such as the three large-scale repair works of the PROUD series utilizing re:Premium being certified for "Good Condominium Management" under the FY2019 "Project to Promote Long-term Good Housing Renovation," which is supported by the Ministry of Land, Infrastructure, Transport and Tourism.

In addition, the Company was ranked first in the 2019 Sumai Surfin "Management Company Customer Satisfaction Survey" for the 11th consecutive year and also ranked first in the "Tokyo Metropolitan Area Condominium Management Company" ranking in the 2019 Oricon Customer Satisfaction Survey for the third con-secutive year.

z Other Business Unit

Operating revenue in the Other Business Unit totaled ¥168 million, which represents an increase of 77.4% year on year, and business loss totaled ¥106 million (the previous fiscal year was business loss of ¥43 million).

Analysis of Financial Position z Assets

Total assets were ¥1,801,273 million, which represents an increase of ¥41,818 million compared to the end of the previous fiscal year. This was mainly because inventories increased by ¥77,809 million, while securities decreased by ¥37,000 million.

z Liabilities

Total liabilities were ¥1,236,153 million, which represents an increase of ¥18,260 million compared to the end of the previous fiscal year. This was mainly because notes and accounts payable-trade increased by ¥40,270 million and deposits received increased by ¥8,648 million, while borrowings decreased by ¥44,000 million.

z Net Assets

Net assets were ¥565,120 million, which represents an increase of ¥23,557 million compared to the end of the previous fiscal year. This was mainly because retained earnings increased by ¥34,510 million, while there was a decrease in net assets due to the acquisi-tion of treasury shares in the amount of ¥8,551 million.

Cash Flows z Cash flows from Operating Activities

Net cash provided by operating activities increased by ¥56,618 mil-lion (a year-on-year decrease of ¥33,345 million). This was mainly due to ¥73,090 million in profit before income taxes was recorded and trade payables increased while there was an increase in inven-tories and there were payments of income taxes.

z Cash flows from Investing Activities

Net cash used in investing activities decreased by ¥30,490 million (a year-on-year increase of ¥16,208 million). This was mainly due to the purchase of plant and equipment and intangible assets and the purchase of investment securities through equity method invest-ments in overseas development projects.

z Cash flows from Financing Activities

Net cash used in financing activities decreased by ¥66,821 million (a year-on-year decrease of ¥80,545 million). This was mainly due to the repayments of long-term borrowings and the payment of cash dividends.

Facilities Situation

In the fiscal year ended March 31, 2020, the Group's total capital investments amounted to ¥20,360 million, including the "KAMEIDO PROJECT/large-scale commercial facility portion (name unde-cided)" (Koto-ku, Tokyo).

The breakdown of capital investment by department is as follows.

Business Unit (Millions of yen)
Residential Development	¥	201
Commercial Real Estate	15,880	16,452	571
Investment Management	10	181	170
Property Brokerage and CRE	488	405	(82)
Property and Facility Management	1,692	1,770	78
Other	19	14	(4)
Subtotal	18,628	19,563	935
Adjustments	1,148	796	(351)
Total	¥19,776	¥20,360	¥	583

Change

The following facilities, for which construction was still in progress at the end of the previous fiscal year, were completed in the fiscal year ended March 31, 2020.

Company Name

NREG TOSHIBA BUILDING Co., Ltd.

GICROS GINZA GEMS (Chuo-ku Tokyo)

Property Name (Location)Business SegmentMajor Use

Commercial Retail Real Estate facilities

Size of Construction or Details of Facility, etc.

Steel-framed construction (partially steel-framed reinforced concrete and reinforced concrete construction), 3 floors below ground, 11 floors aboveground

Area (m2)

CompletionAcquisition Price (Millions of yen)

Building: 2,683 Land: 312

July 2019

¥4,940

In accordance with the acquisition of shares in ZEN PLAZA CO., LTD, in the fiscal year ended March 31, 2020, the following facility is classified as a major facility.

Company Name

ZEN PLAZA CO., LTD

(Ho Chi Minh, Vietnam)

Property Name (Location)

ZEN PLAZA

Note: Land area includes leased land

Business SegmentMajor Use

Size of Construction or Details of Facility, etc.

Commercial Real EstateOfficeSteel frame and brick construction, 2 floors below ground, 14 floors above ground

Building: 16,074 Land: 1,472

In the fiscal year ended March 31, 2020, the following non-current assets were transferred to real estate for sale.

Company Name

NBURIELGDITNOGSCHoIB.,ALtd.

Creare Toshiba Motosumiyoshi (KNaankaaghaawraa-)kaun, dKa4w4 aosthakeir-shi,residential

Business

Property Name (Location)

Segment Major Use Size of Construction or Details of Facility, etc.

Reinforced concrete construction,Commercial Residential

Real Estate 7 floors above ground

Note: The space area shows the details of Creare Toshiba Motosumiyoshi and includes name, department, main use, structure size or facility details.

The following facilities were sold during the fiscal year ended March 31, 2020.

Company Name

Nomura Real Estate

Property Name (Location)

Wako BuildingDevelopment Co., Ltd. (Minato-ku, Tokyo)

Business SegmentMajor Use

Commercial

Real Estate Office

Size of Construction or Details of Facility, etc.

Steel-framed reinforced concrete construction, 1 floor below ground, 8 floors above ground

Area (m2)Book Value (Millions of yen)

¥3,060

Area (m2)Book Value (Millions of yen)

Building: 7,390 Land: 4,233

¥24,210

Area (m2)Book Value (Millions of yen)

Building: 3,171 Land: 621

¥7,426

Previous	Current
fiscal year	fiscal year
(April 1, 2018 to	(April 1, 2019 to
March 31, 2019	March 31, 2020)

¥

537

¥

738

Major Facilities and Equipment

Major facilities and equipment in the Commercial Real Estate Business Unit for the Nomura Real Estate Group and its consolidated subsidiaries are as follows.

1) Office and retail facilities, etc.

Company NameProperty Name (Location)

NREG TOSHIBA BUILDING

Co., Ltd.

Hamamatsucho Building / Toshiba Building (Minato-ku, Tokyo)Nomura Real Estate Development Co., Ltd.

Yokohama Business Park *2 (Hodogaya-ku, Yokohama-shi, Kanagawa)

NREG TOSHIBA BUILDING

Co., Ltd.

LAZONA Kawasaki Toshiba Building (Saiwai-ku, Kawasaki-shi, Kanagawa)Nomura Real Estate Development Co., Ltd.

Nihonbashi Muromachi Nomura Building (Chuo-ku, Tokyo)

Nomura Real Estate Development Co., Ltd.

Yokohama Nomura Building *3 (Nishi-ku, Yokohama-shi, Kanagawa)

Nomura Real Estate Development Co., Ltd.

Nomura Fudosan Ginza Building *3 (Chuo-ku, Tokyo)

Nomura Real Estate Development Co., Ltd.

Nomura Fudosan Nihonbashi-honcho Building (Chuo-ku, Tokyo)

Nomura Real Estate Development Co., Ltd.

Shinjuku Nomura Building *2 *3 (Shinjuku-ku, Tokyo)

Nomura Real Estate Development Co., Ltd.

Kameido 6 chome Project (tentative name) *2 *4 (Koto-ku, Tokyo)

Nomura Real Estate Development Co., Ltd.

Mainly Ryubundo Co., Ltd.

HOTEL NIWA TOKYO (Chiyoda-ku, Tokyo)Landport Takatsuki (Takatsuki-shi, Osaka)

Midosuji Mirai Development, LLC

Midosuji Nomura Building *2 (Chuo-ku, Osaka-shi, Osaka)

Major UseSize of Construction or Details of Facility, etc.

Office

Steel-framed reinforced concrete construction (partially steel-framed and reinforced concrete construction), 3 floors below ground, 39 floors above groundOffice

Steel-framed construction (partially steel-framed reinforced concrete construction), 2 floors below ground, 21 floors above ground, 11 other buildings

Office

Steel-framed construction, 15 floors above ground

Office

Steel-framed construction (partially reinforced concrete and steel-framed reinforced concrete construction), 5 floors below ground, 21 floors above groundOffice

Steel-framed construction, 17 floors above ground, 1 other building

Office

Steel-framed reinforced concrete construction (partially reinforced concrete and steel-framed construction), 5 floors below ground, 17 floors above groundOffice

Steel-framed reinforced concrete construction, 3 floors below ground, 8 floors above groundOffice

Steel-framed reinforced concrete construction (partially reinforced concrete and steel-framed construction), 5 floors below ground, 50 floors above groundLand slated for building construction

-

Logistics facilityReinforced concrete construction (partially steel-framed construction), 5 floors above ground, 1 other building

Hotel

Steel-framed construction (partially steel-framed reinforced concrete construction), 16 floors above ground, 2 other buildings

Office

Steel-framed construction (partially reinforced concrete construction), 2 floors below ground, 14 floors above ground

Completion orTotal Floor Area (m2)

Book Value (Millions of yen)

[Time of Acquisition]Land Area (m2)FacilityLand

158,732 March 1984 33,921 ¥12,199 ¥129,809

245,200

Mainly February 1990

98,428

March 2013

44,989

September 2010

58,755 January 2017

OtherTotal

Company NameProperty Name (Location)

¥457

¥142,466

Nomura Real Estate Development Co., Ltd.

Morisia Tsudanuma *2 (Narashino-shi, Chiba)

70,817

27,871

14,584

867

43,323

Nomura Real Estate Development Co., Ltd.

Nomura Fudosan Shibadaimon Building (Minato-ku, Tokyo)

9,764

13,236

22,245

404

35,886

Nomura Real Estate Development Co., Ltd.

Otemachi Nomura Building *2 *3 (Chiyoda-ku, Tokyo)

2,737

12,844

19,227

321

32,393

NREG TOSHIBA BUILDING

Co., Ltd.

LAZONA Kawasaki Plaza *3 *5 (Saiwai-ku, Kawasaki-shi, Kanagawa)

6,721

17,968

8,809

436

27,214

NREG TOSHIBA BUILDING

Co., Ltd.

Toshiba Hamamatsucho Building (Minato-ku, Tokyo)

26,748

March 1982

3,184

1,757

22,677

6

24,442

Nomura Real Estate Development Co., Ltd.

Dai-ni Edobashi Building * 5 (Chuo-ku, Tokyo)

29,430

April 1961

3,196

1,711

21,116

0

22,828

Nomura Real Estate Development Co., Ltd.

bono Sagamiono Shopping Center *3 (Minami-ku, Sagamihara-shi, Kanagawa)

58,512

May 1978

4,639

5,711

16,303

277

22,292

Nomura Real Estate Development Co., Ltd.

Minamigyotoku SC *2 (Ichikawa-shi, Chiba)

-

[December 2017]

24,822

-

20,099

-

20,099

Nomura Real Estate Development Co., Ltd.

TOKYO TORANOMON GLOBAL SQUARE (tentative name) *6 (Minato-ku, Tokyo)

70,529

June 2017

35,276

9,533

10,247

309

20,090

NREG TOSHIBA BUILDING

Co., Ltd.

Shinyokohama Toshiba Building

(Kohoku-ku, Yokohama-shi, Kanagawa)

1,710

March 2009

9,280

3,114

16,418

118

19,652

NREG TOSHIBA BUILDING

Co., Ltd.

20,420

February 2009

1,939

3,356

15,707

18

19,083

Fuchu Toshiba Building (Fuchu-shi, Tokyo)Nomura Real Estate Development Co., Ltd.

Nomura Otemachi Kita Building (tentative name) (Chiyoda-ku, Tokyo)

Major UseSize of Construction or Details of Facility, etc.

Retail facilitySteel-framed reinforced concrete construction (partially reinforced concrete construction), 3 floors below ground,12 floors above ground, 1 other building

Office

Steel-framed construction (partially steel-framed reinforced concrete construction), 2 floors below ground, 11 floors above groundOffice

Steel-framed construction (partially steel-framed reinforced concrete construction), 5 floors below ground, 27 floors above groundRetail facility

Steel-framed reinforced concrete construction (partially reinforced concrete and steel-framed construction), 1 floor below ground, 6 floors above groundOffice

Steel-framed reinforced concrete construction, 8 floors above ground

Office

Steel-framed reinforced concrete construction, 3 floors below ground, 9 floors above groundRetail facilityReinforced concrete construction (partially steel-framed construction), 1 floor below ground, 11 floors above groundRetail facilitySteel-framed construction (partially reinforced concrete construction), 2 floors below ground, 2 floors above ground

Land slated for building construction

-

Training facilityReinforced concrete construction, 1 floor below ground, 4 floors above ground, 4 other buildingsOffice

Steel-framed reinforced concrete construction (partially reinforced concrete construction), 1 floor below ground, 8 floors above ground, 1 other building

Land slated for building construction

-

Completion orTotal Floor Area (m2)

[Time of Acquisition]

97,699

Mainly October 1978

15,700

April 2010

9,815

February 1994

98,254

September 2006

13,482

July 1974

13,359

November 1973

43,059 January 2013

Book Value (Millions of yen)Land Area (m2)FacilityLandOtherTotal

19,194

¥1,513

¥16,038

¥ 28

¥17,581

2,447

3,314

10,650

63

14,028

749

1,268

12,584

5

13,858

72,013

11,383

-

822

12,206

2,907

370

10,956

2

11,329

1,376

406

10,553

8

10,969

5,797

5,346

4,649

286

10,281

35,612

April 2000

16,503

4,622

4,942

8

9,574

-

[October 2018]

2,782

-

9,369

-

9,369

28,822

Mainly June 1969

15,829

2,952

5,660

26

8,639

32,299

April 1993

8,290

3,336

5,247

29

8,612

-

[September 2017]

886

-

7,292

-

7,292

Completion orCompany NameProperty Name (Location)

Nomura Real Estate Development Co., Ltd.

Nomura Fudosan Sendai Aoba-dori Building

(Aoba-ku, Sendai-shi, Miyagi)

NREG TOSHIBA BUILDING

Co., Ltd.

Umeda Sky Building *3 (Kita-ku, Osaka-shi, Osaka)

NREG TOSHIBA BUILDING

Co., Ltd.

NREG Kawasaki Logistics Center (Kawasaki-ku, Kawasaki-shi, Kanagawa)NREG TOSHIBA BUILDING

Co., Ltd.

Toshiba Osaka Building (Chuo-ku, Osaka-shi, Osaka)NREG TOSHIBA BUILDING

Co., Ltd.

NREG Midosuji Building / Nomura Fudosan Midosuji Building (Chuo-ku, Osaka-shi, Osaka)Nomura Real Estate Development Co., Ltd.

Nomura Fudosan Ichigaya Building (Chiyoda-ku, Tokyo)Nomura Real Estate Development Co., Ltd.

Toranomon Central Building (Minato-ku, Tokyo)

NREG TOSHIBA BUILDING

Co., Ltd.

Tsurumi Toshiba Building (Tsurumi-ku, Yokohama-shi, Kanagawa)NREG TOSHIBA BUILDING

Co., Ltd.

Creare Toshiba Fuchu (Fuchu-shi, Tokyo)Nomura Real Estate Development Co., Ltd.

Fukuoka Tenjin Center Building *2 *3 (Chuo-ku, Fukuoka-shi, Fukuoka)

NREG TOSHIBA BUILDING

Co., Ltd.

GICROS GINZA GEMS (Chuo-ku, Tokyo)Nomura Real Estate Development Co., Ltd.

PMO Nihonbashi Muromachi *3 (Chuo-ku, Tokyo)

Major UseSize of Construction or Details of Facility, etc.

Office

Steel-framed construction, 1 floor below ground, 10 floors above groundOffice

Steel-framed construction (partially steel-framed reinforced concrete and reinforced concrete construction), 3 floors below ground, 40 floors above groundLogistics facilityReinforced concrete construction (partially steel-framed construction), 5 floors above ground

Office

Steel-framed reinforced concrete construction, 4 floors below ground, 10 floors above groundOffice

Steel-framed reinforced concrete construction, 2 floors below ground, 10 floors above groundOffice

Steel-framed reinforced concrete construction, 2 floors below ground, 9 floors above groundOffice

Steel-framed construction (partially reinforced concrete and steel-framed reinforced concrete construction), 3 floors below ground, 10 floors above ground

Total Floor Area (m2)

12,026

43,093

49,046

15,220

21,007

6,753 January 1982

4,431 August 1977

Office

Steel-framed reinforced concrete construction, 1 floor below ground, 20,648 10 floors above ground

Reinforced concrete constructionResidential

(partially steel-framed reinforced concrete construction), 10 floors above ground

Office

Steel-framed reinforced concrete construction, 3 floors below ground, 19 floors above groundRetail facilitySteel-framed construction (partially steel-framed reinforced concrete and reinforced concrete construction), 3 floors below ground, 11 floors above groundOffice

Steel-framed construction (partially steel-framed reinforced concrete construction), 1 floor below ground, 9 floors above ground

[Time of Acquisition]Land Area (m2)

April 2017

1,595

March 1993

8,325

March 2014 27,866

October 1965

1,307

April 1974

2,366

1,220

548

March 1991

3,501

26,352 January 1992 20,590

25,103

April 1976

2,683

July 2019

5,333 January 2013

Book Value (Millions of yen)

Completion orFacilityLandOtherTotal

Company NameProperty Name (Location)

Nomura

¥3,830

¥3,306

¥ 75

¥7,212

Real Estate Development Co., Ltd.

Nomura Fudosan Tameike Building (Minato-ku, Tokyo)

2,331

4,585

78

6,995

Nomura Real Estate Development Co., Ltd.

NOHGA HOTEL AKIHABARA TOKYO (tentative name) (Chiyoda-ku, Tokyo)NREG TOSHIBA BUILDING

3,464

3,109

368

6,942

Co., Ltd.

Toshiba Fukuoka Building

(Chuo-ku, Fukuoka-shi, Fukuoka)NREG TOSHIBA BUILDING

923

5,989

3

6,916

Co., Ltd.

Toshiba Manseibashi Building *5 (Chiyoda-ku, Tokyo)

782

5,768

44

6,595

Nomura Real Estate Development Co., Ltd.

NOHGA HOTEL KIYOMIZU KYOTO (tentative name) *3 (Higashiyama-ku, Kyoto-shi, Kyoto)

2,778

3,182

2

5,963

NREG TOSHIBA BUILDING

Co., Ltd.

Nomura Fudosan Nishishinjuku Kyodo Building *3 (Shinjuku-ku, Tokyo)NREG TOSHIBA BUILDING

750

4,999

0

5,750

Co., Ltd.

Major Use

OfficeLand slated for building constructionOfficeOfficeLand slated for building constructionOfficeToshiba Sendai

Building *3 *5 (Aoba-ku, Hotel Sendai-shi, Miyagi)

Size of Construction or Details of Facility, etc.

Steel-framed reinforced concrete construction, 1 floor below ground, 9 floors above ground

-

Steel-framed construction (partially steel-framed reinforced concrete construction), 2 floors below ground, 17 floors above groundReinforced concrete construction, 1 floor below ground, 9 floors above ground

-

Steel-framed construction (partially steel-framed reinforced concrete and reinforced concrete construction), 1 floor below ground, 8 floors above groundSteel-framed construction (partially reinforced concrete construction), 2 floors below ground, 11 floors above ground

Total Floor Area (m2)

[Time of Acquisition]

6,478

July 1959

- [March 2018]

Book Value (Millions of yen)Land Area (m2)FacilityLandOtherTotal

690

¥154

¥4,394

¥-

¥4,549

663

-

4,169

-

4,169

23,711

July 1993

4,597

2,065

1,918

22

4,006

5,319

September 1961

681

202

3,551

0

3,754

-

[September 2018]

1,382

-

3,676

-

3,676

6,716

October 1993

1,249

848

2,700

4

3,553

16,179

April 1975

1,731

585

2,817

2

3,404

Notes: 1. "Facility" represents building accounts, "land" represents land and leasehold rights accounts and "others" represents structures; machinery; tools, appliances, and fixtures; vehicles and delivery equipment; and leased asset accounts. "Total" represents the sum of leasehold rights accounts and tangible fixed assets excluding construction in progress accounts.

2,482

3,073

38

5,594

• 2. Includes the trust beneficial right.

• 3. Refers to calculated area owned including both total floor area and land area.

• 4. Land area refers to total area at the planning stage including residential development business.

• 5. Land area includes leased land.

• 6. Land area refers to the area on which the redevelopment property will be situated.

3,910

1,516

32

5,459

2) Fitness club

Company Name

2,256

875

4,413

51

5,340

Property Name (Location)

Nomura Real Estate Life & Sports Co., Ltd.

Megaros Souka and other 46 facilities

(Souka-shi, Saitama and others)

Major UseSize of Construction or Details of Facility, etc.

Fitness clubReinforced concrete construction, 3 floors, 1 other building and fitness club

Total Floor Area (m2)

Book Value (Millions of yen)Completion or [Time of Acquisition]

15,321

Land Area (m2)FacilityLandOtherTotal

June 2002

15,430 ¥7,696

¥- ¥1,047 ¥8,743

312

1,931

2,979

66

4,977

Notes: 1. "Facility" represents building accounts, "land" represents land and leasehold rights accounts and "others" represents structures; machinery; tools, appliances, and fixtures; vehicles and delivery equipment; and leased asset accounts. "Total" represents tangible fixed assets excluding construction in progress accounts.

2. "Total floor area" represents the total owned area of Megalos Kashiwa, Megalos Chikusa 24 and Megalos Saginuma. "Land area" represents the leased land area of these facilities. "Size of construction or details of facility, etc." and "Completion or [time of acquisition]" are in reference to Megalos Kashiwa.

701

1,113

3,716

89

4,920