NEWS RELEASE
August 25, 2020
For Immediate Release

Investment Corporation
Japan Real Estate Investment Corporation
Yutaka Yanagisawa, Executive Director(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Naoki Umeda, President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Planning Department
Phone: +81‐3‐3211‐7951

Announcement of Forecast Revisions
for the September 2020 Period and the March 2021 Period
Japan Real Estate Investment Corporation (“JRE”) hereby announces that it has made the following
revisions to the performance forecasts for the fiscal period ending September 30, 2020 (from April 1,2020 to September 30, 2020) and the fiscal period ending March 31, 2021 (from October 1, 2020 toMarch 31, 2021), released on May 15, 2020 at the time of the announcement of the financial results forthe fiscal period ended March 31, 2020.

1. Forecast revisions
Forecast revisions for the September 2020 period (from April 1, 2020 to September 30, 2020)
Dividend per
OptimalUnit excluding
PayableOptimalDistributionperPayableUnit
Distribution

Operating
Revenues

Operating
ProfitOrdinary
ProfitNet Profit

Previously
announced forecast(A)
Revised forecast(B)
Amount ofincrease/decrease(B−A)

JPY million
35,010

JPY million
16,310

JPY million
15,330

JPY million
15,320JPY
10,800

JPY0

JPY million
34,940

JPY million
16,300

JPY million
15,350

JPY million
15,340JPY
11,070

JPY0

JPY million(70)

JPY million(10)

JPY million
20

JPY million
20

JPY
270

JPY
0

Rate ofincrease/decrease%(0.2)%(0.1)

%
0.1%
0.1%
2.5%
‐1

Forecast revisions for the March 2021 period (from October 1, 2020 to March 31, 2021)
Operating
Revenues

Operating
ProfitOrdinary
ProfitNet ProfitDividend per
OptimalUnit excluding
PayableOptimalDistribution per
PayableUnit
Distribution

Previously
announced forecast(A)
Revised forecast(B)
Amount ofincrease/decrease(B−A)

JPY million
35,100

JPY million
16,230

JPY million
15,250

JPY million
15,240JPY
10,750

JPY0

JPY million
34,870

JPY million
16,240

JPY million
15,250

JPY million
15,240

JPY11,000

JPY0

JPY million(230)

JPY million
10

JPY million
0

JPY million
0

JPY
250

JPY0

Rate ofincrease/decrease%(0.7)%0.1%‐%‐%
2.3%‐(Note1) The previous forecasts were calculated based on the number of investment units outstanding of 1,417,590 under
the assumption that JRE newly issues 32,380 units during the September 2020 period; these revised forecasts
are calculated according to the number of investment units outstanding as of today, standing at 1,385,210.
Other than the above, the forecasts are estimates as of today, which are calculated on the basis of “Assumptions
Underlying Forecast Revisions for the September 2020 period and the March 2021 period” attached below; theactual operating revenues, operating profits, ordinary profits, net profits, and DPUs are subject to change due tofactors such as a future acquisition or disposition of assets, or a change in the operating environment. Note thatthese forecasts are not intended to be a guarantee of the actual performance or DPU.
(Note2) Figures in the columns for Operating Revenues, Operating Profit, Ordinary Profit, and Net Profit are rounded
down to the nearest ten million Japanese yen.

2. Reason for the revisions
JRE intended to raise the equity capital through a public offering in April 2020 for allocating it to part of
the acquisition fund for the four properties acquired during March and April 2020. However, it has
postponed the public offering because of the high volatility in the equity market posed by the spread of
COVID‐19. Instead, JRE filed the shelf registration statement relating to the public offering with theKanto Local Finance Bureau on March 25, 2020 to make clear its intention to increase the equity capitalduring the September 2020 period; therefore, the previous forecasts are calculated under theassumption that JRE issues new investment units during the period.
Now turning to the current landscape of the equity market and the current level of the unit price of JRE,
it has deemed the capital increase unfeasible in such conditions and decided to maintain the current
number of units outstanding rather than issuing new units for the time being. That has changed theassumption of the number of the investment units for the September 2020 period and the March 2021
period, thereby JRE having made revisions to their performance forecasts.
As for these revised forecasts, JRE calculated them on the basis of “Assumptions Underlying Forecast
Revisions for the September 2020 period and the March 2021 period” attached below.
3. JRE’s portfolio performance
The outlook for JRE’s portfolio occupancy has not deviated significantly from the one at the previous
forecast. The number of office tenants terminating their contracts remains at the same level as thenormal time. Meanwhile, downtime before finding new tenants becomes longer due to the spread of
COVID‐19 compared to the previous periods, and therefore the vacancy rates for the September 2020
period and the March 2021 period edge up from the end of the previous period. JRE presently deems,
however, that they will fall within the range expected at the previous forecast.
In addition to the above, JRE agreed on rent deferment or temporary rent reduction with some of its
shop/restaurant tenants, which has been factored into the revised forecasts, but that has had only a2

marginal impact on its performance. As for the office tenants, JRE has no cases where it granted them
temporary rent reduction, while agreeing to defer the rent payment for a few of them.
JRE will sincerely respond to each of its tenants closely assessing each case, while following requests
from public authorities and social needs.

This is the English translation of the announcement in Japanese dated August 25, 2020.
No assurance or warranties, are given for the completeness or accuracy of this English translation.
3Attachment
Assumptions Underlying Forecast Revisions
for the September 2020 period and the March 2021 period
Item
Accounting period

Number ofproperties held byJRE
Number of units
outstanding

Interest‐bearing
debt

Operatingrevenues

OperatingexpensesNon‐operating
expensesAssumption
・The September 2020 period: April 1, 2020 through September 30, 2020 (183 days)
・The March 2021 period: October 1, 2020 through March 31, 2021 (182 days)
・It is assumed that the number of the properties held by JRE at the end of each period is 73.
This assumption, however, is subject to change due to future property acquisitions and/ordispositions.
・As of August 25, 2020, there is no forward commitment made by JRE, which is specified in
the “Comprehensive Guidelines for Supervision of Financial Instruments Business
Operators, etc.” issued by FSA.
・It is assumed that the number of investment units outstanding is 1,385,210, the number asof today.
・The balance of interest‐bearing debt is JPY 418.9 billion as of today.
・As for the September 2020 period, JRE executed a short‐term loan of JPY 17 billion on April
20 for allocating it to part of the acquisition fund for Link Square Shinjuku and refinanced ashort‐term loan of JPY 10 billion before its due date with a long‐term loan on April 27. JRE
also refinanced all of the long‐term and short‐term loans due during the September 2020
period, which total up to JPY 13 billion and JPY 11 billion respectively. There are noinvestment corporation bonds to mature in the September 2020 period.
・As for the March 2021 period, as of August 25, 2020, JRE intends to refinance all of thelong‐term loans due during the period (Maturity: October 29, 2020, December 21, 2020,January 15, 2021, January 29, 2021 and March 24, 2021), which total JPY 28 billion, and allof the short‐term loans due during the period (Maturity: November 18, 2020, December
28, 2020, March 29, 2021 and March 30, 2021), which total 19 billion. There are noinvestment corporation bonds to mature in the March 2021 period.
・Revenues from the properties held by JRE are calculated by taking into consideration thenew leasings and the tenancy terminations confirmed as of today, and other factors
reflecting the recent office leasing market landscape.
・In addition to the above, JRE has factored into the calculation, to a certain degree, theimpact of the spread of COVID‐19 such as temporary reduction in rental revenue, which isknown to date.
・For the property tax, city planning tax, and depreciable property tax pertaining to theproperties held by JRE, it reports the amount corresponding to an accounting period outof the tax amount payable, which has been determined by the assessment anddetermination, as property‐related expenses. In the event, however, that a property tax
adjustment is incurred by JRE regarding a property that it acquired within a fiscal year thatthe first day of the said accounting period belongs to, the said adjustment is included in
the acquisition cost and therefore not reported as expenses for the said accounting
period. In addition, JRE assumes property taxes, city planning taxes, and depreciable
property taxes of fiscal year 2021 for the properties acquired in 2020 to be as follows:
JPY 42 million for Seavans S Building, JPY 72 million for Otemachi Park Building, JPY 47
million for Shinjuku Front Tower (additional acquisition), JPY 30 million for Shinjuku
Eastside Square (additional acquisition), and JPY 57 million for Link Square Shinjuku
・The property and other taxes will be JPY 3,290 million for the September 2020 period andJPY 3,290 million for the March 2021 period.
・The depreciation will be JPY 6,620 million for the September 2020 period and JPY 6,510
million for the March 2021 period.
・Repair expenses may vastly differ from the forecast because such costs fluctuatesignificantly from one fiscal period to another, and these costs are not regularly incurred.
・Non‐operating expenses, such as interest expenses on loans and investment corporation
bonds, will be JPY 1,040 million for the September 2020 period and JPY 990 million for theMarch 2021 period.

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Dividend amountOther

・It is assumed that JRE does not distribute dividends to its unitholders beyond the profit fora period. The total dividend amount, therefore, is up to a ceiling of the profit for a period
and more than the equivalent of 90% of the distributable profit in conformance withArticles of Incorporation of JRE.
・The gains on reversal of reserve for reduction entry of JPY 2 million for the September 2020
period and JPY 2 million for the March 2021 period, which corresponds to the depreciationof the replaced properties, will be subject to cash distributions.
・It is assumed that any revisions that affect the above forecasted figures will not be made tolaws and regulations, tax systems, accounting standards, listing rules, and regulations of
the Investment Trusts Association, Japan, and so on.
・It is assumed that an unexpected and grave change will not occur to the general economic
trends or real estate market landscape or other factors.
・JRE has factored into the calculation, to a certain degree, the impact of the spread of
COVID‐19 such as temporary decrease in rental revenue, which is known to date;however, the impact is subject to change due to the uncertainty of the coronavirus
development.
・As for the corporate tax, etc., they are calculated taking into account the leasehold
amortization and asset retirement obligations for buildings with the fixed term land leaseright as well as the income taxes‐deferred related to the above reserve for reduction
entry.

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