Revenue distribution by sector:

• Office properties: approx. 70%
• Retail properties: approx. 15%
• Other properties (e.g. logistics, residential properties): approx. 15%

TOP 3 markets and their percentage shares:

• Tokyo: approx. 60%
• Osaka: approx. 20%
• Nagoya: approx. 10%

Nippon Building Fund Inc. generates the majority of its revenue from office properties, which is typical for a Real Estate Investment Trust (REIT) in Japan. The focus is strongly on the Tokyo market, considered the economic center of Japan. Osaka and Nagoya follow as significant markets that also make substantial contributions to the revenue. This distribution reflects the strategic focus on economically strong regions.

Nippon Building Fund Inc. (TSE:8951) is a Real Estate Investment Trust (REIT) and does not produce any physical products.

Nippon Building Fund Inc. invests in real estate, particularly in office buildings in Japan. The company generates revenue through the leasing and management of these properties. Being a REIT, the focus is on the acquisition, management, and optimization of real estate assets, not on the production of physical goods.

Fund volume: 1.2 trillion JPY (2025, estimated) Real estate portfolio: 80 properties (2025, estimated)

Nippon Building Fund Inc. (NBF) pursues a growth strategy based on expanding and diversifying its real estate portfolio. The company focuses on acquiring high-quality office buildings in prime locations to secure stable rental income.

Another focus is on sustainability. NBF invests in modernizing existing properties to improve their energy efficiency and reduce the ecological footprint. This aligns with the increasing demand from tenants and investors for environmentally friendly real estate solutions.

Furthermore, NBF plans to expand its market presence through strategic partnerships and joint ventures with other real estate developers and investors. These collaborations are intended to facilitate access to new markets and increase growth potential.

Imported Materials: Building and construction materials

Countries of Origin: China, South Korea, USA

Nippon Building Fund Inc. is a real estate investment fund that invests in commercial properties. While the fund itself does not import raw materials, the construction companies it contracts rely on the import of building and construction materials. These materials typically include steel, cement, and glass, which are often imported from China and South Korea.

In addition, specialized materials and technologies could be sourced from the USA to enhance the quality and efficiency of the construction projects. The selection of countries of origin is based on the availability, costs, and quality of the materials.

Market Share: Approximately 10% in the Japanese REIT market (2023)
Portfolio Occupancy: Over 95% (2023)
Dividend Yield: 3.5% (2023)

Nippon Building Fund Inc. (NBF) is one of the largest Real Estate Investment Trusts (REITs) in Japan and has secured a significant competitive advantage through a strategic selection of prime properties in central business districts. Their portfolio includes high-quality office buildings with high demand and occupancy rates.

Another advantage of NBF is their strong financial position, which enables them to invest in new projects and modernize existing properties. The high portfolio occupancy of over 95% demonstrates the attractiveness of their properties and the company's ability to generate stable income.

The 3.5% dividend yield is competitive compared to other REITs, making NBF attractive to income-oriented investors. Overall, NBF's competitive advantage is based on their market position, high-quality real estate portfolio, and ability to provide stable and attractive returns.

Institutional Investor Share: approx. 70% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant transactions reported (as of 2025)

Nippon Building Fund Inc. traditionally has a high proportion of institutional investors, which is typical for large Japanese real estate funds. These investors appreciate the stability and regular income that such funds provide.

Regarding insider transactions, there have been no significant buys or sells reported in the current year. This suggests that management has confidence in the current business development and does not expect any major changes in ownership structure.

Market share of Nippon Building Fund Inc.: 12% (2025, estimated)

Top competitors and their market shares:

1. Japan Real Estate Investment Corporation: 15%
2. Nomura Real Estate Master Fund: 13%
3. Nippon Building Fund Inc.: 12%
4. Japan Retail Fund Investment Corporation: 10%
5. GLP J-REIT: 9%
6. United Urban Investment Corporation: 8%
7. Daiwa House REIT Investment Corporation: 7%
8. Sekisui House Reit, Inc.: 6%
9. Frontier Real Estate Investment Corporation: 5%
10. Mitsubishi Estate Logistics REIT Investment Corporation: 4%

Moat of Nippon Building Fund Inc.:

Nippon Building Fund Inc. has a moderate moat, mainly due to its strategic positioning in prime office properties in Tokyo and other major cities in Japan. These properties have high occupancy rates and stable rental income, providing the company with a certain level of stability and income predictability.

However, compared to its competitors, Nippon Building Fund Inc. does not have a significant technological or operational advantage that could be considered a strong moat. Companies like Japan Real Estate Investment Corporation and Nomura Real Estate Master Fund have similar portfolios and market strategies, intensifying the competition.

Some competitors could build a stronger moat through diversification into other real estate segments or through international expansion. Nippon Building Fund Inc. could benefit from a similar strategy to strengthen its market position and differentiate itself from the competition.

Total Revenue: 80 billion JPY (2024) Net Income: 25 billion JPY (2024) Occupancy Rate: 98% (2024)

Nippon Building Fund Inc. (NBF) achieved total revenue of approximately 80 billion JPY in 2024, indicating strong demand for their real estate properties. The company was able to record a net income of 25 billion JPY, pointing to an efficient cost structure and effective management.

The 98% occupancy rate indicates that NBF's properties are nearly fully utilized, which is a positive sign for revenue stability. This is particularly important in a market that can be affected by uncertainties and economic fluctuations.

Additionally, NBF has been consistently investing in the modernization and expansion of their portfolio in recent years, providing future growth potential. Diversification into various real estate segments can also be seen as risk mitigation.

Overall, the financial health and strategic direction of Nippon Building Fund Inc. suggest that it is a solid investment, especially for investors interested in stable and long-term returns.

Dividend Yield: 3.5% (2024)
Dividend History: Continuous payout since 2001

Nippon Building Fund Inc. is known for its reliable dividend policy. The company has been continuously distributing dividends to its shareholders since its founding in 2001. The current dividend yield is approximately 3.5%, which is considered stable and attractive compared to other real estate funds.

The reliability of the payout is supported by the company's stable revenue structure, which is based on long-term lease agreements and a diversified real estate portfolio. This allows Nippon Building Fund Inc. to maintain a consistent dividend policy even in economically challenging times.