About NBF

To Our Unitholders

Nippon Building Fund Inc. Executive Director KOICHI NISHIYAMA

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 2020 (the 38th period) consisted of operating revenues of ¥38,591 million, operating income of ¥16,761 million, net income of ¥15,513 million, and a cash distribution per unit of ¥10,986.

As of the end of this period, NBF’s portfolio included 71 properties, representing an investment of ¥1,135.5 billion (aggregate acquisition price), total rentable area of 1,082,105 m², and a total of 1,464 tenants, with an average occupancy rate during the period of 99.4%.

As to the office building rental market of Tokyo’s CBDs, although a downward trend in the vacancy rate continued during the fiscal period under review as well and asking rent continued on a slight upward trend, a slight increase in vacancy rate was seen due to the impact of COVID-19, albeit at a low level.

In the office building trading market, the appetite of overseas investors, domestic real estate companies, general corporations, private funds, and J-REITs for acquiring properties continues to be strong as the impact of COVID-19 is currently minimal amidst an ongoing favorable financing environment backed by monetary easing measures. On the other hand, with information on prime properties for sale being limited, the competition for acquiring properties continues to intensify.

Under such an environment, NBF is conducting 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 additionally acquired ownership interest in “Osaki Bright Core - Bright Plaza” (real estate, acquisition price: ¥2.8 billion), a property it already owns, in March 2020.

NBF has endeavored to expand stable revenues from its rental business with respect to its existing portfolio by reinforcing measures for maintaining occupancy rates and increasing rents upon renewal of contracts through appropriate and flexible leasing activities with a good understanding of market trends and strengthened relationships with tenants. 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, and “5-Star,” the top rating in the GRESB Score ranking conducted in 2019. 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 ¥11,000 per unit for the period ending December 2020 (the 39th period) and an expected distribution of ¥11,000 per unit (reference) for the period ending June 2021 (the 40th 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
Actual38th Period (1H/2020) 10,986yen
Forecast39th Period (2H/2020) 11,000yen
40th Period (1H/2021) 11,330yen
Portfolio Data
Number of
Asset Size(Total Acquisition Price)
(Contract base)
1,385.0billion yen
As of Nov. 16, 2020
Occupancy Rate 97.7%
As of Dec. 31, 2020
Financial Data
38th Period(First-Half 2020)

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