NEWS RELEASE
March 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 Forecast for the March 2021 Period
Japan Real Estate Investment Corporation (“JRE”) hereby announces that it has made the following
revisions to the performance forecast for the fiscal period ending September 30, 2020 (from April 1,2020 to September 30, 2020), released on November 15, 2019 at the time of the announcement of thefinancial results for the fiscal period ended September 30, 2019. JRE also announces the following
performance forecast for the fiscal period ending March 31, 2021 (from October 1, 2020 to March 31,2021).
Please note, however, that as of today, there is no revision made to the forecast for the fiscal period
ending March 31, 2020 (from October 1, 2019 to March 31, 2020), released on November 15, 2019.

1. Forecast revisions for the September 2020 period (from April 1, 2020 to September 30, 2020)
Net Profit

Dividend per Unit
excluding Optimal
PayableDistribution

Optimal Payable
Distribution perUnit

million yen
14,420

million yen
14,410yen
10,400yen
0million yen
16,210

million yen
15,240

million yen
15,230yen
10,750yen
0million yen
800

million yen
820

million yen
820

yen
350

yen
0%
5.2%
5.7%
5.7%
3.4%
‐

Operating
Revenues

Operating
ProfitOrdinary
ProfitPreviouslyyen
announced forecast million
34,130(A)
Revised forecast
million yen
35,440(B)
Amount ofyen
increase/decrease million
1,310
(B−A)
%
Rate ofincrease/decrease
3.8

million yen
15,4101

(Note1) The forecast is calculated under the assumption that a public offering is made during the September 2020 period;
therefore, the number of investment units outstanding is assumed to be 1,417,590, which is determined byadding to 1,385,210, the number of investment units outstanding as of today, 32,380, the number of units to be
newly issued, that is calculated based on the total issue value of JPY 20 billion derived from the premise that it isequivalent to the proposed offering amount specified in the shelf registration statement relating to the public
offering filed with the Kanto Local Finance Bureau today. There is no guarantee, however, that this public
offering is made, and there is also a possibility that the number of units newly issued varies even if it is made. In
such cases, the actual DPU might deviate from the forecast.
Other than the above, the forecast is an estimate as of today, which is calculated also on the basis of“Assumptions Underlying Forecast Revisions for the September 2020 period and Forecast for the March 2021
period” attached below; the actual operating revenues, operating profit, ordinary profit, net profit, and DPU aresubject to change due to a future acquisition or disposition of real estate, and a change in the operating
environment. Note that this forecast is not intended to be a guarantee of the actual performance or DPU. The
same applies hereinafter.
(Note2) Figures in the columns for Operating Revenues, Operating Profit, Ordinary Profit, and Net Profit are rounded
down to the nearest ten million yen.

2. Reason for the revisions
JRE has filed today a shelf registration statement relating to the public offering with theDirector‐General of the Kanto Local Finance Bureau in view of the current market situation. (For thedetails, please refer to the press release “Announcement of Filing of Shelf Registration Statement
Relating to Public Offering” announced today.) Additionally, JRE also decided to acquire “Shinjuku Front
Tower (additional acquisition)”, “Shinjuku Eastside Square (additional acquisition)”, and “Link SquareShinjuku” during the March 2020 period and the September 2020 period. (For the details, please referto the press release “Announcement of Acquisition of Domestic Real Estate and Trust Beneficial
Interests in Domestic Real estate” announced today.)From the above, the assumptions underlying the performance forecast for the fiscal period ending
September 30, 2020, which was announced on November 15, 2019 in “FINANCIAL RESULTS FOR THE
FISCAL PERIOD ENDED SEPTEMBER 2019 (REIT)”, has changed; therefore, JRE has made revisions to it.
3. Forecast for the March 2021 period (from October 1, 2020 to March 31, 2021)
OperatingRevenues

Operating
ProfitOrdinaryProfit

Net Profit

Dividend per Unit
excluding OptimalPayable
Distribution

Optimal Payable
Distribution perUnit

Forecast for March million yen
2021 period
35,620

million yen
16,370

million yen
15,390

million yen
15,380yen
10,850yen
0This is the English translation of the announcement in Japanese dated March 25, 2020.
No assurance or warranties, are given for the completeness or accuracy of this English translation.
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Attachment
Assumptions Underlying Forecast Revisions for the September 2020 period
and Forecast for the March 2021 period
Item
Accounting period

Number ofproperties held byJRE

Number of units
outstanding

Interest‐bearing
debt

Operatingrevenues

OperatingexpensesAssumption
・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)
・The number of the properties held by JRE as of March 25, 2020 is 73, and the assumption
takes into account the additional interests in Shinjuku Front Tower and Shinjuku Eastside
Square, which are to be acquired during the March 2020 period, and the interest in Link
Square Shinjuku to be acquired during the September 2020 period. This assumption,
however, is subject to change due to future property acquisitions and/or dispositions.
・There is no forward commitment made by JRE as of March 25, 2020, which is specified in
the “Comprehensive Guidelines for Supervision of Financial Instruments Business
Operators, etc.”
・The number of investment units outstanding is assumed to be 1,417,590, which isdetermined by adding to 1,385,210, the number of investment units outstanding as oftoday, 32,380, the number of units to be newly issued, that is calculated based on thetotal issue value of JPY 20 billion, which is derived from the premise that it is equivalent tothe proposed offering amount specified in the shelf registration statement relating to thepublic offering filed with the Kanto Local Finance Bureau today.
・JRE maintains an LTV ratio within a range between 30% and 40% as an operationalguideline.
・The balance of interest‐bearing debt is JPY 386.9 billion as of today. JRE will execute ashort‐term loan of JPY 15 billion for the additional acquisitions of Shinjuku Front Tower
and Shinjuku Eastside Square, and will execute another short‐term loan of JPY 17 billionfor the acquisition of Link Square Shinjuku. Furthermore, JRE intends to allocate the wholeamount raised by issuing units to part of the above loan repayments on the basis of theassumption of JPY 20 billion of the total issue value, which is derived from the premisethat it is equivalent to the proposed offering amount specified in the shelf registration
statement relating to the public offering filed with the Kanto Local Finance Bureau today,
and, if there is a residue, intends to retain it as cash reserves and apply it to future
property acquisitions and/or loan repayments. The balance, however, is subject to change
due to the presence or absence of the said public offering and any deviation from theexpected number of the issued units and amount of the issue value.
・As for the September 2020 period, except for the loans pertaining to the aforementioned
property acquisitions, JRE intends to refinance JPY 13 billion long‐term loans due on June15, 2020 and July 3, 2020 and JPY 11 billion short‐term loan due on May 18, 2020 as ofMarch 25, 2020. There are no investment corporation bonds to mature in the September
2020 period.
・As for the March 2021 period, except for the loans pertaining to the aforementioned
property acquisitions, JRE intends to refinance JPY 28 billion long‐term loans due on
October 29, 2020, December 21, 2020, January 15, 2021, January 29, 2021 and March 24,2021, and JPY 3 billion short‐term loans due on December 28, 2020 and March 30, 2021,
which is the principal repayment date of a short‐term loan of JPY 1.7 billion to be executedon March 30, 2020, as of March 25, 2020. There are no investment corporation bonds tomature in the March 2021 period.
・Revenues from the properties held by JRE are calculated by taking into consideration
conclusion of a new contract and cancellation of an existing contract, which has been
confirmed as of March 25, 2020, and variable factors, such as rent revisions reflecting therecent office leasing market conditions, and ups and downs of rent revenues due totenants’ move in and out. Leasing business revenues pertaining to the additional interestsin Shinjuku Front Tower and Shinjuku Eastside Square, and the interest in Link Square
Shinjuku is calculated based on the expectation for the lease terms and conditions, etc. asof today.
・For the property tax, city planning tax, and depreciable property tax pertaining to theproperties held by JRE, JRE reports the amount for an accounting period of thedetermined tax amount levied to JRE as leasing business expenses. In the event, however,that a property tax adjustment is incurred by JRE regarding a property that JRE acquired3

Non‐operating
expensesDividend amountOther

within a fiscal year that the first day of the said accounting period belongs to, the said
adjustment is included to the acquisition cost and therefore not reported as expenses forthe said accounting period. In addition, JRE assumes the 2021 property taxes, city planningtaxes, and property taxes for properties acquired or to be acquired in 2020 to be as
follows:
JPY 41 million for Seavans S Building, JPY 72 million for Otemachi Park Building, JPY 46
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 1,060 million for the September 2020 period and JPY 970 million for theMarch 2021 period.
・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.
・The gains on the reversal of the reduction entry, corresponding to the depreciation of thereplaced property, will be subject to cash distributions in the September 2020 period andthe March 2021 period.
・As described in “Number of units outstanding”, it is assumed that JRE will issue investment
units during the September 2020 period. There is no guarantee, however, that this public
offering is made, and there is also a possibility that the number of units newly issued
varies even if it is made. In such cases, the actual DPU might deviate from the forecast.
・It is assumed that a revision that affects the above forecast will not be made to laws, tax
systems, accounting standards, listing rules, and regulations of the Investment Trusts
Association, Japan, and so on.
・It is assumed that unexpected and significant changes will not occur to the general market
trends or real estate market conditions or other factors.
・As for the corporate tax, etc., they are calculated taking into account the amortization of
fixed term land leaseholds in buildings and asset retirement obligations as well as theincome taxes deferred on the above reserves for reduction entry.

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