NOMURA REAL ESTATE MASTER FUND, INC.

TSE code :3462

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  2. Strength of NMF
  3. Larger scale strategy

Larger scale strategy

NMF’s portfolio is one of the largest in Japan. Various measures to reduce risks through diversification and increased risk tolerance will be actively promoted and property management will be effectively implemented by utilizing the economy of scale.
In addition, NMF will promote the reduction of funding costs by increasing the asset size and market size as well as the diversification of funding methods in an aim to increase financial stability backed by an enhanced fund raising capacity.

Risk Reduction through Diversification

In order to realize NMF’s basic policy of securing stable income over the medium to long term, it will aim to reduce the risks of decreased revenues and maldistribution of portfolio properties as well as the risks associated with tenant concentration by utilizing the diversification effect of the portfolio.

Ratio of top 10 properties : 24.8%

Diversification of properties

Ratio of top 10 tenants : 19.4%

Diversification of tenants

(Note 1) The figures for "Ratio of top 10 properties" are calculated based on the acquisition price of the portfolio held by NMF as of today.
(Note 2) The figures for "Ratio of top 10 tenants" are calculated based on the rents which are stated in the latest financial results. However, in the case of assets with a so-called pass-through master lease agreement, the rents are based on the contracts with end-tenants.

Active Promotion of Measures for Increasing the Value of the Portfolio

NMF will aim for internal growth such as through the active promotion of property replacements as a measure against the aging of portfolio properties, rebuilding through collaboration with the sponsor and value-adding work that utilizes depreciation.

Effective Property Management Utilizing the Economy of Scale

NMF will aim to decrease construction costs through the reduction of building management costs and through bulk orders such as for repair work, utilizing the economy of scale from having one of the largest asset sizes in Japan. In addition, NMF believes that effective leasing activities can be implemented as many properties can be introduced to potential tenants and brokers.

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