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 June 2021 (the 40th period) consisted of operating revenues of ¥46,213 million, operating income of ¥22,778 million, net income of ¥21,427 million, and a cash distribution per unit of ¥11,684.

As of the end of this period, NBF’s portfolio included 75 properties, representing an investment of ¥1,367.5 billion (total acquisition price), total rentable area of 1,216,543m², and a total of 1,606 tenants, with an average occupancy rate during the period of 97.8%.

In the office building rental market for central Tokyo, while there were some contracts concluded for relocation for floor expansion, etc., cancellations of large space or partial space due to consolidation of offices, etc. also began to appear. For these reasons, vacancy rates have continued to rise and asking rents have shown a downward trend, albeit slight.
In the office building trading market, with the ongoing favorable financing environment due to monetary easing, the appetite for property acquisition among overseas investors, domestic real estate companies, general business companies, private funds and J-REITs continues to be strong. Under such circumstances, information on sales of prime properties is limited, and thus the acquisition environment remains 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 “Shinjuku Mitsui Bldg.” (real estate, acquisition price: \170 billion) and “GranTokyo South Tower” (real estate, acquisition price: \47 billion) in January 2021, and additionally acquired 40% co-ownership of “Ueno East Tower” (real estate, acquisition price: \13.4 billion), a property it already owns, in March 2021 by utilizing its sponsor pipeline under an environment in which acquisition of prime properties is difficult. In addition, it disposed “NBF Minami-Aoyama Bldg.” (real estate, disposition price: \31.6 billion) and 50% co-ownership of NBF Shinkawa Bldg. (East Building and Maison New River) (real estate, disposition price: \5.95 billion) in March 2021 to press ahead with a review its portfolio.

With respect to the existing portfolio, although the level of occupancy rates has entered a correction phase, revenues from the rental business have remained stable as a result of accurate understanding of market trends, appropriate and flexible leasing activities, 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 initiatives. During the fiscal period under review, NBF announced support for Task Force on Climate-related Financial Disclosures (TCFD) and newly set a reduction target for CO2 emissions (intensity).

NBF’s forecast business results include an expected distribution of ¥11,684 per unit for the period ending June 2021 (the 40th period) and an expected distribution of ¥11,500 per unit (reference) for the period ending December 2021 (the 41st 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
Actual40th Period (1H/2021) 11,684yen
Forecast41st Period (2H/2021) 11,500yen
42nd Period (1H/2022) 13,000yen
Portfolio Data
Number of
Asset Size(Total Acquisition Price)
(Contract base)
1,437.2billion yen
As of Jan. 6, 2022
Occupancy Rate 96.4%
As of Dec. 31, 2021
Financial Data
40th Period (First-Half 2020)

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