About NBF

To Our Unitholders

Nippon Building Fund Inc. Executive Director KOICHI NISHIYAMA

Firstly, we would like to express our heartfelt sympathies to those suffering from and those affected by COVID-19 and pray for the earliest possible recovery.

We would like to express our sincere gratitude for continued support from our unitholders.

In September 2001 NBF became the first Japanese real estate investment corporation to be listed on the J-REIT section of the Tokyo Stock Exchange, and since then its portfolio assets have steadily grown.

NBF's management results for the period ended December 2020 (the 39th period) consisted of operating revenues of ¥41,747 million, operating income of ¥18,712 million, net income of ¥17,273 million, and a cash distribution per unit of ¥11,000.

As of the end of this period, NBF’s portfolio included 74 properties, representing an investment of ¥1,172.1 billion (aggregate acquisition price), total rentable area of 1,106,692m², and a total of 1,551 tenants, with an average occupancy rate during the period of 98.8%.

In the office building rental market in central Tokyo, despite the increase in the number of cancellations being limited due to the impact of COVID-19, the number of contracts concluded decreased with the delay in the decision-making of prospective tenants and other factors. As a result, vacancy rates continued to be on an upward trend and asking rent turned to a downward trend, although slight.

In the office building trading market, as the financing environment remains favorable due to measures for monetary easing, the appetite for property acquisition among overseas investors, domestic real estate companies, general corporations, private funds and J-REITs continues to be strong. On the other hand, information on sales of prime properties is limited and the environment for property acquisition continues to be severe.

Under such an environment, NBF has conducted asset management in accordance with its basic policy of “aim to achieve steady growth of assets under management and secure stable profits on a mid- to long-term basis.”

During the fiscal period under review, NBF acquired “Osaki Bright Tower” (real estate, acquisition price: ¥13.97 billion), “Nagoya Mitsui Main Building” (real estate, acquisition price: ¥13.05 billion) and “Nagoya Mitsui New Building” (real estate, acquisition price: ¥13.2 billion) in October 2020, and additionally acquired “NBF Ogawamachi Bldg.” (real estate, acquisition price: ¥0.48 billion), a property it already owns, in November 2020 by utilizing its sponsor pipeline under an environment in which acquisition of prime properties is difficult. In addition, it disposed 50% ownership interest in the East Building and Residential Tower of “NBF Shinkawa Building” (real estate, disposition price: ¥5.95 billion) in December 2020.

NBF has endeavored to expand stable revenues from its rental business with respect to its existing portfolio through appropriate and flexible leasing activities with a good understanding of market trends, maintenance of favorable relationships with tenants and measures for continuous rent increase upon renewal of contracts. In addition, NBF has also put forth efforts to reduce costs by properly allocating the timing and cost of renovation/construction while striving to enhance competitiveness of properties by carrying out strategic and rightly focused additional investment.

NBF also promotes ESG (environment, social and governance) initiatives and received “Green Star,” the highest rating in the GRESB (Global Real Estate Sustainability Benchmark) Real Estate Assessment for six consecutive years since the start of participation, and “5-Star,” the top rating in the GRESB Score ranking conducted in 2020. In addition, it also received “A,” the top rating in the GRESB Public Disclosure Level evaluation scheme.

NBF’s forecast business results include an expected distribution of ¥11,350 per unit for the period ending June 2021 (the 40th period) and an expected distribution of ¥11,050 per unit (reference) for the period ending December 2021 (the 41th period).

As the first and largest J-REIT in Japan, NBF aims to continuously achieve sustainable growth in its portfolio value and secure stable distributions on a mid-term and long-term basis by maximizing the know-how of its sponsor, the Mitsui Fudosan Group.

We are grateful for your continued guidance and support.

  • Financial Highlights
  • Distributions
Distribution Per Unit
Actual39th Period (2H/2020) 11,000yen
Forecast40th Period (1H/2021) 11,350yen
41th Period (2H/2021) 11,050yen
Portfolio Data
Number of
Asset Size(Total Acquisition Price)
(Contract base)
1,367.5billion yen
As of Mar. 25, 2021
Occupancy Rate 97.6%
As of Feb. 28, 2021
Financial Data
39th Period(Second-Half 2020)

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