About NBF

To Our Unitholders

Nippon Building Fund Inc. Executive Director KOICHI NISHIYAMA

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

We would like to express our utmost gratitude for the 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 June 2022 (the 42nd period) consisted of operating revenues of ¥52,215 million, operating income of ¥26,806 million, net income of ¥25,439 million, and a cash distribution per unit of ¥13,476.

As of the end of this period, NBF's portfolio included 73 properties, representing an investment of ¥1.4516 trillion (aggregate acquisition price), total rentable area of 1,237,167 m², and a total of 1,601 tenants, with an average occupancy rate of 96.3% during the period.

The rise in vacancy rates is coming to a halt in the office building rental market in central Tokyo. Yet this rate remains stable at around 6%. There are no signs of an improvement in the vacancy rates, and asking rents are continuing to fall, albeit at a small rate. The demand to acquire office buildings remain high, from foreign and domestic investors, domestic real estate companies, business companies and J-REITs alike , although attention needs to be paid to the impact of rising interest rates.

Information on sales of prime properties is limited, making acquisition opportunities challenging.

Even under this challenging environment, NBF enhanced its portfolio by acquiring "Nakanoshima Mitsui Bldg" (real property; acquisition price: 44.0 billion yen) and "IIDABASHI GRAND BLOOM" (real property; acquisition price:36.1 billion yen(additional acquisition)), in March 2022, and disposed "Sun Mullion NBF Tower" (trust beneficiary interest, disposition price: 14.4 billion yen), in January 2022.

Regarding the existing portfolio, NBF executes market-appropriate, flexible, and timely leasing activities carefully factoring in market trends in order to maximize the level of occupancy rates, which is still in an adjustment phase. With existing tenants, NBF strives to retain and improve rent levels, prevent cancellations based on the fundamental policy of maintaining favorable relationships and enhancing tenant satisfaction. As a result of these activities, occupancy rates and rental revenues remains stable. In addition, NBF's pursuit to enhance competitiveness of its properties by implementing continuous cost reduction measures through timely renovations will continue

Furthermore, in order to promote ESG initiatives, a dedicated department has been newly established at the asset management company. Therein, new numerical targets have been set to reduce environmental footprint and promoting initiatives to achieve these goals.

NBF's forecast business results include an expected distribution of ¥11,500 per unit (reference) for the period ending December 2022 (the 43rd period) and an expected distribution of ¥11,500 per unit (reference) for the period ending June 2023 (the 44th 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
Actual42nd Period (1H/2022) 13,476yen
Forecast43rd Period (2H/2022) 11,500yen
44th Period (1H/2023) 11,500yen
Portfolio Data
Number of
Asset Size(Total Acquisition Price)
(Contract base)
1,436.9billion yen
As of August. 31, 2022
Occupancy Rate 96.6%
As of June. 30, 2022
Financial Data
42nd Period (1st-Half 2022)

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