Nomura Office Fund (NOF) shall adopt and implement the following systematic and flexible financial strategy to secure stable medium- and long-term earnings and ensure steady portfolio growth.

(1) Equity Finance

NOF may from time to time decide upon the issue new investment units after due consideration of the timing of new property acquisitions, the ratio of the total amount of interest-bearing debts to the total amount of assets (loan-to-value (LTV) ratio), repayment periods of interest-bearing debts, general economic conditions and other factors.

(2) Debt Finance

When raising funds, NOF shall examine the ratio of short- and long-term debt, the issuance of investment corporation bonds(including Short-term Investment Corporation Bonds;Same hereinafter), and establishment of commitment lines, etc. with the aim of maintaining a balance between flexible procurement and NOF's stable finance. NOF sets the target LTV ratio such that it should allow flexible new debt funding. NOF shall have restrictions on the maximum outstanding amount of its borrowings and investment corporation bonds of 1 trillion yen, respectively; provided that in no case the total outstanding amount of such loan and investment corporation bonds shall exceed 1 trillion yen.
Please refer to Investor Relations | Finance > Borrowings and Investor Relations | Finance > Investment Corporation Bonds for the current status.

1. LTV Ratio

   In principle, the LTV ratio shall not exceed 60%. However, the LTV ratio may temporarily exceed 60%, upon acquisition of new assets and/or fluctuations in asset appraisal.

2. Collateral Policy

   NOF may collateralize its assets to secure its borrowings and/or its investment corporation bonds.