February 21, 2008
To whom it may concern:
Japan Real Estate Investment Corporation
Taketo Yamazaki, Executive Director(TSE code: 8952)
Contact: (Asset Management Company)
Japan Real Estate Asset Management Co., Ltd.
Kazuhiko Arahata, CEO & President
Haruhiko Araki, General Manager, Planning Department
Phone: +81-3-3211-7921

Announcement of Public Offering of Units
Announcement is hereby made that Japan Real Estate Investment Corporation (the “Company”) will makepublic offerings of new units as resolved by the Board of Directors at a meeting held on February 21, 2008.

1. Public offerings of new units(1) Number of units to be : 33,000 units
newly issued: To be determined(2) Issue price(Issue price shall be determined at the Board of Directors meeting held ona date from March 5, 2008 (Wed) to March 11, 2008 (Tue) [hereinafterreferred to as “price determination date”]. Issue price means the value perunit the Company receives from underwriters.): To be determined(3) Aggregate amountof issue price(4) Offer price: To be determined(Subscription price)(5) Subscription method : The new units shall be publicly offered and the Company will have thefollowing companies underwrite all the units on a firm commitment basis:
Nikko Citigroup Limited (Lead manager), Nomura Securities Co., Ltd.,
Shinko Securities Co., Ltd., Mizuho Securities Co., Ltd., Mitsubishi UFJSecurities Co., Ltd. and Daiwa Securities SMBC Co., Ltd. (hereinafter,collectively referred to as “Underwriters”).
In addition, the publicly subscribed offer price shall be tentatively set
at the product of the closing price of the investment unit of the Company
on the Tokyo Stock Exchange on the price determination date (or nearest
date if the closing price is not available on such given date), multiplied bya conversion factor of 0.90 – 1.00 (fractions omitted), and then finallydetermined taking into account the demand forecast.
Disclaimer: This document is intended to serve as a press statement to make available the information on public offerings of units ofJapan Real Estate Investment Corporation (the “Company”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any unit or other investment of the Company. Prospective investors are advised
to read the Company's prospectus for new unit issuance (and its amendments, if any) and make any investment decisions attheir own risk and responsibility.

: Underwriters shall make payment of the aggregate amount of theissue price to the Company on the payment date. The pricedifference between the aggregate amount of the offer price (subscriptionprice) and the aggregate amount of the issue price shall be the proceeds ofeach underwriter, and the Company will not pay an underwriting fee tounderwriters.
(7) Demand forecast: March 3, 2008 (Mon) through March 11, 2008 (Tue)(bookbuilding) period(maximal length)(8) Minimum: 1 unit (subscriptions above one unit should be multiples of one unit).
subscription unit
: March 6, 2008 (Thu) through March 7, 2008 (Fri)(9) Subscription period
Please note that the above subscription period may be moved down, taking
into account the demand forecast. In that case, the latest subscription
period shall be March 12, 2008 (Wed) through March 13, 2008 (Thu).
(10) Payment date
: March 12, 2008 (Wed)Please note that the above payment date may be moved down, taking into
account the demand forecast. In that case, the latest payment date shall beMarch 18, 2008 (Tue).
(11) Delivery date
: The next business day after the payment date.
(12) Offer price (subscription price), issue price, and other pertinent matters required for issuance of newunits shall be determined at the Board of Directors meeting to be held hereafter.
(13) Each clause mentioned above is subject to effectiveness of filing made with the relevant authorities
pursuant to the Financial Instruments and Exchange Law.
(6) Underwriting
agreement

2. Change of number of units issued and outstanding upon new issuance of units
Number of units outstanding before the offering
410,000
Number of newly issued units
33,000
Number of units outstanding after the offering
443,000
3. Reason for the issuance of units (use of proceeds), etc.
(1) Reason for the issuance of units (use of proceeds)
Net proceeds from the offerings (approximately ¥37,600,000,000) will be used primarily for thepurchase of additional specified assets and for repayment of a portion of the existing borrowings.
(2) Change in use of proceeds from the last issuance of units
Not applicable(3) The impact on the Company’s management performance
As per described in “Notice of Revision of Forecast Results for the 13th Period (March 31, 2008)
and the 14th Period (September 30, 2008)” announced on February 21, 2008.

Disclaimer: This document is intended to serve as a press statement to make available the information on public offerings of units ofJapan Real Estate Investment Corporation (the “Company”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any unit or other investment of the Company. Prospective investors are advised
to read the Company's prospectus for new unit issuance (and its amendments, if any) and make any investment decisions attheir own risk and responsibility.

4. Distribution of earnings to unitholders(1) Basic policy regarding distribution of earnings
The distribution of earnings is based on the cash distribution policy prescribed in the Articles ofIncorporation. Currently, the Company will not make a distribution in excess of earnings.
(2) Distributions in past three fiscal periods
the 10th Period
the 11th Period
the 12th Period
From April 1, 2006
to September 30, 2006

From October 1, 2006
to March 31, 2007

¥17,302¥17,302
99.9%

Net income per unit (Note)
Dividend per unit
Actual payout ratio

From April 1, 2007
to September 30, 2007

¥17,876¥17,521100.0%¥18,500¥18,500
99.9%(Note) Net income per unit was calculated by dividing the net income by the weighted average number ofinvestment units for the period.

5. Others(1) Placement to designated purchasers
Not applicable(2) Equity finance activities in the past three years
1) Equity finance
Date of issuance
April 26, 2005
October 24, 2006

Amount issued¥68,024 million¥63,211 million

Total paid-in
unitholders’ capital
after the offering¥201,472 million¥264,683 million

RemarkPublic offering
Public offering2) Movement of unit price in the past three fiscal periods and the latest fiscal period
the 13th Period
the 11th Period
the 12th Period
the 10th Period
Initialprice
HighLow
Closing
price(Note)

From April 1, 2006
to September 30, 2006

From October 1, 2006
to March 31, 2007

From April 1, 2007
to September 30, 2007

¥1,010,000¥1,010,000¥1,530,000¥1,390,000¥1,100,000¥904,000¥1,590,000¥989,000¥1,730,000¥1,110,000¥1,550,000¥1,130,000¥1,000,000¥1,560,000¥1,380,000¥1,230,000

From October 1, 2007
to March 31, 2008

(Note) The investment unit price for the 13th Period is as of February 20, 2008.

Disclaimer: This document is intended to serve as a press statement to make available the information on public offerings of units ofJapan Real Estate Investment Corporation (the “Company”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any unit or other investment of the Company. Prospective investors are advised
to read the Company's prospectus for new unit issuance (and its amendments, if any) and make any investment decisions attheir own risk and responsibility.

(3) Restriction period on next additional issuance of units
The Company has an agreement with the lead manager, Nikko Citigroup Limited concerning therestriction of additional issuance of units for three months from the payment date of this public
offering without obtaining prior written consent from Nikko Citigroup Limited.
However, Nikko Citigroup Limited has the authority to cancel all or part of this restriction or
to shorten such restriction period at its discretion.
This notice is the English translation of the announcement in Japanese dated February 21, 2008 on ourwebsite. However, no assurance or warranties are given for the completeness or accuracy of this English
translation.

Disclaimer: This document is intended to serve as a press statement to make available the information on public offerings of units ofJapan Real Estate Investment Corporation (the “Company”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any unit or other investment of the Company. Prospective investors are advised
to read the Company's prospectus for new unit issuance (and its amendments, if any) and make any investment decisions attheir own risk and responsibility.