Nomura Real Estate Master Fund (3462) investor relations material

Executive summary

• Aug. 2026 DPU was ¥3,695, up ¥61 (+1.7%) from the prior period; forecasts rise to ¥3,719 in Feb. 2027 and ¥3,729 in Aug. 2027, marking 11 consecutive increases.

• 22nd-period revenue rose 4.8% YoY to ¥43,151mn; operating profit increased 13.8% to ¥18,051mn and net income rose 13.9% to ¥15,208mn.

• Strong leasing and rent growth supported internal growth; large office and logistics cancellations are expected to temporarily reduce income, with vacated space viewed as a future leasing opportunity.

• Medium-term targets aim for 3% annual growth in policy cruising distributions, supported by internal growth, external growth and capital policy.

• Portfolio occupancy reached 99.0%; 285 properties had ¥1,097,977mn in acquisition cost and 83.4% Greater Tokyo exposure at period-end.

Financial highlights

• Aug. 2026 operating revenue was ¥43,151mn, operating profit ¥18,050mn and net income ¥15,207mn; rental revenues were ¥37,148mn.

• Operating revenues included ¥2,377mn in property-sale gains; excluding gains, operating profit was ¥15,673mn and net income ¥12,831mn.

• FFO was ¥21,358mn, down ¥479mn from Feb. 2026; FFO per unit was ¥4,596 and FFO distribution payout ratio was 80.4%.

• Distributions totaled ¥3,695 per unit, comprising ¥3,271 from earnings and ¥424 in excess distributions; total cash distributions were ¥17,168mn.

• Total assets were ¥1,176,590mn and net assets ¥598,366mn at Aug. 2026 FP end; cash and cash equivalents were ¥57,129mn.

Outlook and guidance

• Feb. 2027 forecast: revenue ¥41,252mn, operating profit ¥16,388mn, ordinary income ¥13,021mn and net income ¥13,020mn; Aug. 2027 forecast: ¥41,348mn, ¥16,239mn, ¥12,541mn and ¥12,540mn, respectively.

• Forecast distributions per unit, including excess distributions, are ¥3,719 for Feb. 2027 and ¥3,729 for Aug. 2027; earnings-only amounts are ¥2,801 and ¥2,699.

• Internal reserves are planned to offset lower income from large lease cancellations and higher-than-assumed interest costs.

• Excluding large-scale cancellations, forecast average annual rent revenue growth is 2.7% through Aug. 2027 FP, versus the plan assumption of 2.3%; backfilling vacated space is central to recovery.

• Forecasts assume no acquisitions or disposals through Aug. 2027, no property-sale gains, refinancing of ¥65,345mn in maturities and no new unit issuance; policy-rate assumptions rise to 1.75% by H1 FY2027.