Investment Policies

Portfolio Management Standards Based on Basic Policy

The asset management company establishes the management guideline as follows.

Use / Area

NUD's investments are focused primarily in the Tokyo Economic Bloc, which is characterized by high concentrations of people and industries and an established economic foundation, and in Major Regional Cities.

Specifically, by dividing the investment target areas into the categories of the 5 Central Wards of Tokyo, the Other 18 Wards of Tokyo, the Urban Areas Surrounding Tokyo and the Major Regional Cities, and by considering the balance between those categories while concentrating on the 5 Central Wards, NUD seeks to achieve a portfolio diversified by asset type comprising office buildings and residential properties. And NUD diversifies its investment targeting to achieve a geographical split as indicated in the below table for both office buildings and residential properties (each of which is set at 100% in the table).

Investment Areas	5 Central Wards of Tokyo	Other 18 Wards of Tokyo	Urban Areas Surrounding Tokyo	Major Regional Cities
Specific Areas	Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards	The remaining 18 wards of the 23 wards of Tokyo, excluding 5 Central Wards of Tokyo	Other urban areas within Greater Metropolitan Tokyo, which comprises the Metropolis of Tokyo (excluding 23 wards of Tokyo), Kanagawa Prefecture (areas such as Yokohama City and Kawasaki City), Saitama Prefecture (areas such as Saitama City) and Chiba Prefecture (areas such as Chiba City)	Major cities such as Sapporo, Sendai, Shizuoka, Nagoya, Osaka, Kyoto, Kobe, Hiroshima, Okayama and Fukuoka
Office buildings	50% or more	0% - 20%	0% - 40%	0% - 20%
Residential properties	50% or more	0% - 40%	0% - 20%	0% - 20%

Asset Size per Property

Office buildings

In principle, office buildings with leasable floor space of approximately 2,000㎡ or more, and standard floor sizes of approximately 300㎡ or more, are the investment targets.

Residential properties

In principle, residential properties of the sizes indicated in the table below are the investment targets.

	Dedicated Use Area per Rental Unit	Number of Rental Units
Wide	80㎡ or more	10 or more
Family	60㎡ or more	20 or more
DINKs	40 - 80㎡	20 or more
Single	25 - 40㎡	30 or more