Nomura Real Estate Master Fund

1. Real Estate Market Risks: As a real estate investment trust (REIT), Nomura Real Estate Master Fund is heavily reliant on the performance of the real estate market. Any downturn or unfavorable market conditions can lead to a decrease in the value of the fund’s assets, resulting in a decline in share prices and dividends for investors.

2. Interest Rate Risks: Rising interest rates can have a negative impact on the fund’s performance as it increases borrowing costs, reducing the profitability of the properties owned by the fund. This could also affect the demand for the fund’s units as investors may seek alternative investment options with potentially higher returns.

3. Vacancy and Credit Risks: Vacant properties and tenants defaulting on their rental obligations can lead to a decrease in the fund’s income and overall performance. The fund could also face credit risks if its tenants face financial difficulties and are unable to pay rent, leading to a potential decrease in the fund’s dividend payments.

4. Regulatory Risks: Nomura Real Estate Master Fund operates in a highly regulated industry and any changes in regulations, tax laws or government policies could negatively impact its operations and profitability.

5. Liquidity Risks: As a non-traded real estate investment trust, Nomura Real Estate Master Fund’s units may not be readily marketable, making it difficult for investors to sell their units at a fair price, especially in times of market volatility.

6. Concentration Risks: The fund’s portfolio may be heavily concentrated in a specific type of property, location or tenants. This could increase the risk exposure of the fund as any negative developments in these areas could disproportionately affect its performance.

7. Management Risks: The fund’s performance is dependent on the skills and expertise of its management team and the fund’s ability to hire and retain talented personnel. Any changes in the fund’s management or a failure to attract and retain qualified personnel could negatively impact its performance.

8. Currency Risks: The fund’s assets may be denominated in a foreign currency, exposing it to currency exchange rate fluctuations. This could lead to a decrease in the fund’s value and adversely affect its financial performance.

9. Counterparty Risks: The fund may enter into various financial transactions with counterparties such as lenders, insurers, and tenants. Any defaults by these counterparties could have a significant impact on the fund’s financial stability and performance.

10. Economic Risks: Any adverse economic conditions, such as a recession or financial crisis, could affect the fund’s operations, occupancy rates, and rental income, ultimately leading to a decline in its financial performance.