MARCH2009
Semiannual
Report
For the period from October 1, 2008 to March 31, 2009

Japan Real Estate Investment Corporation

Profile
Japan Real Estate Investment Corporation (“the Company”) was established as one of
the f irst real estate investment corporations in Japan, following revisions to the Law
Concerning Investment Trusts and Investment Corporations of Japan, as amended, or
the Investment Trust Law. Its investments focus primarily on off ice buildings, and it isaiming to maintain geographical diversity while seeking stable growth and dividends inthe medium to long term. The Company was listed on the Tokyo Stock Exchange(“TSE”) on September 10, 2001. (Securities Code: 8952)
Note: Investment corporations, including the Company, are special legal entities incorporated and operated underthe Investment Trust Law. Accordingly, the “units” of such investment corporations, including the units of theCompany, are governed by the Investment Trust Law and represent the equity interests in such investment
corporations, which may differ in certain material respects from the “shares” governed by the Corporation Law ofJapan and representing the equity interests in Japanese ordinary corporations incorporated and operated under
the Corporation Law of Japan. Investors and readers are specifically reminded to pay attention to such differences
when reviewing this semiannual report and making any investment decision on or in respect of the “units” of
the Company. “Unitholders” of the Company may be construed accordingly. Each of the investors and readers
should consult their own legal, tax and other advisors regarding all Japanese legal, tax and other consequencesof an investment in the units of the Company, with specific reference to their own legal, tax and other situation
and any recent changes in applicable laws, guidelines or their interpretation.

Contents
Financial Highlights

p. 1

Top 10 Unitholdersp. 1

Unit Price Performancep. 1

The Highlights of Japan Real Estate
Investment Corporation

p. 2

Portfolio Highlights

p. 3

New Portfolio Property

p. 4

Subsequent Events

p. 5

History after IPO

p. 6

To Our Unitholders

p. 8

The Portfolio of Japan Real Estate
Investment Corporation

p.12

Overview of Portfolio Properties

p.15

Financial Section

p.23

Introduction of the Company's Website

p.38

Corporate Data

p.39

Financial Highlights
Thousands of U.S. dollars(Note 1)Millions of yen
For the period from
October 1, 2008 to
March 31, 2009

For the period from
April 1, 2008 to
September 30, 2008

For the period from
October 1, 2007 to
March 31, 2008

For the period from
April 1, 2007 to
September 30, 2007

For the period from
October 1, 2006 to
March 31, 2007

For the period from
October 1, 2008 to
March 31, 2009

20,716
9,955
8,426
8,425

19,805
9,807
8,449
8,448

25,743
14,21812,946
12,945

17,530
8,739
7,586
7,585

16,960
8,304
7,184
7,183

210,900
101,349
85,78785,777

Net Operating Income (NOI) (Note 2)
Funds from Operations (FFO) (Note 3)
FFO Multiple (Note 4)

14,575
12,21313.7 times

14,173
12,00915.5 times

12,1978,078
31.9 times

12,073
10,02228.3 times

11,3009,441
33.8 times

148,378
124,341
13.7 times

Cash Distribution
Number of Units
Dividend per Unit (Yen/U.S. dollars)

8,425
443,000
19,0208,448
443,000
19,072

12,945443,000
29,223

7,585
410,000
18,5007,183
410,000
17,52185,777443,000
193.63Operating Revenues
Operating Income
Income before Income Taxes
Net Income

Notes: 1. Amounts in U.S. dollars are included solely for the convenience of readers outside Japan. The rate of ¥98.23 = US$1.00, the foreign exchange rate on
March 31, 2009, has been used for translation. The inclusion of such amounts is not intended to imply that Japanese yen amounts have been or could be readily
converted, realized or settled into U.S. dollars at that rate or any other rate.
2. NOI = Property-Related Revenues – Property-Related Expenses (excluding Depreciation)
3. FFO = Net Income + Depreciation – Gain (Loss) on Transfer of Properties – Dividends Earned
4. FFO Multiple = Unit Price at End of the Respective Term ÷ FFO per Unit (Annualized)(Annualized portion of the calculation given in note 4 assumes a fiscal period of 182 days for the period ended March 31, 2007, 183 days for the period ended
September 30, 2007, 183 days for the period ended March 31, 2008, 183 days for the period ended September 30, 2008 and 182 days for the period ended
March 31, 2009.)

Top 10 Unitholders
As of March 31, 2009
Units

% of total units
outstanding

38,89933,21730,81922,817
13,031
10,160
9,640
9,254
8,325
8,120

8.78%
7.50%
6.96%
5.15%
2.94%
2.29%
2.18%
2.09%
1.88%
1.83%

The Company

PO Price

Company

NikkoCiti Trust and Banking Corporation (Toshin Acc.) .......................................................................................
Japan Trustee Services Bank, Ltd. (Shintaku Acc.) ..................................................................................................
Trust & Custody Services Bank, Ltd. (Toshin Acc.) ................................................................................................
The Master Trust Bank of Japan, Ltd. (Shintaku Acc.) ...........................................................................................
The Nomura Trust and Banking Co., Ltd. (Toshin Acc.) .......................................................................................
Mitsubishi Estate Co., Ltd. .....................................................................................................................................
THE BANK OF NEW YORK, TREATY JASDEC ACCOUNT .........................................................................
STATE STREET BANK AND TRUST COMPANY ............................................................................................
The Chugoku Bank, Ltd. ........................................................................................................................................
Tokio Marine & Nichido Fire Insurance Co., Ltd. .................................................................................................

Unit Price Performance
TSE REIT Index

TOPIX

325%
300%
275%
250%
225%
200%
175%
150%
125%
100%
75%
50% Sept.

Mar.

2001

2002

Sept.

Mar.

2003

Sept.

Mar.

2004

Sept.

Mar.

2005

Sept.

Mar.

2006

Sept.

Mar.

2007

Sept.

Mar.

2008

Sept.

Mar.

2009

Japan Real Estate Investment Corporation 1

The Highlights of Japan Real Estate Investment Corporation

Highlights

Maintenance of Stable Dividends andSteady Performance— The first listed J-REIT, showing steady performance for 15 consecutive periods— Actual dividend per unit for the 15th fiscal period:¥19,020¥18,850($193.63)* 1— Forecasted dividend per unit for the 16th fiscal period:($191.90)*1, 2

Notes: 1. The foreign exchange rate of ¥98.23 = US$1.00, as of March 31, 2009, has been used for this translation.
2. The forecasted dividend was disclosed with the announcement of the 15th fiscal period earnings results on May 18, 2009.

Collaboration with Sponsors— Expertise of Mitsubishi Estate Co., Ltd., The Dai-ichi Mutual Life

Insurance Company and Mitsui & Co., Ltd. is being fully utilized.

Steady Growth with Quality Portfolio— Total acquisition price reached:— Maintains

55¥564,219million

high-quality office buildings

Sound Financial Base— Highest credit ratings for a J-REIT:AA($5,744 million)(as of March 31, 2009)

AA-

from R&I— LTV(Interest-bearing debt / Total assets):from S&P,

Aa3*

1

from Moody’s,

39.0%
78.2%

— Long-term, fixed-interest debt ratio*2:

Notes: 1. It was announced on April 21, 2009 that Moody's Investors Service Inc. lowered the Company's rating to A1 andthat its rating outlook remains stable.
2. Long-term, fixed-interest loans + Investment corporation bonds (including current portions of Long-term, fixed-interest
loans and Investment corporation bonds) / Total Interest-bearing debt

2 Japan Real Estate Investment Corporation

Portfolio Highlights

Trends in the state of portfolio management
Number ofbuildings(Note 1)

Total numberof tenants(Notes 1, 2)

Total leasable
space(Note 1)

Occupancy
rate(Note 1)

September 2001

20

213

133,927m 2

94.6%

March 2002

24

353

201,884m 2

94.0%

September 2002

27

362

215,928m 2

95.3%

March 2003

30

383

236,693m 2

94.4%

September 2003

32

407

246,062m 2

95.1%

March 2004

36

477

273,157m 2

94.8%

September 2004

39

504

293,105m

2

93.6%

March 2005

46

669

336,026m 2

97.6%

September 2005

50

814

364,610m 2

98.6%

March 2006

52

866

400,090m 2

98.7%

September 2006

49

835

396,173m

2

98.2%

March 2007

50

887

397,928m 2

97.8%

September 2007

50

879

406,605m 2

98.7%

March 2008

53

931

479,877m 2

95.9%

September 2008

54

October 2008

54

970

508,296m

2

96.1%

969

508,285m 2

95.3%

November 2008

54

966

508,236m 2

95.2%

December 2008

55

990

516,344m 2

95.5%

January 2009

55

987

516,344m2

95.2%

February 2009

55

986

516,409m 2

95.0%

March 2009

55

993

516,411m 2

95.5%

Notes: 1. The number of properties, total number of tenants, total leasable
space and occupancy rate do not include the land and building
adjacent to the Ryoshin Ginza East Mirror Building.
2. The total number of tenants is the gross number of tenants
by building.

Total leasable space (m 2)100,000

180,000

260,000

340,000

420,000

500,000

Total leasable
space
Occupancy rate

15th period

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

Occupancy rate (%)

Portfolio breakdown
As of March 31, 2009

Properties bygeographic
region(Percentage based on
acquisition price)

Tenants byindustry
type

Other major
cities18.0%(Percentage basedon leased space)

Transport services and travel 1.2%
Steel and metals 1.3%
Ceramics 1.6%
Staffing agencies 1.9%

Others
12.6%

Textiles 1.9%

Serviceindustries
15.8%

Machinery 4.1%

Financeandinsurance
11.3%

Pharmaceuticals 6.1%

Information
services
10.8%

Communications 2.9%

Tokyo metropolitan area
excluding 23 wards
9.4%

Tokyo 23 wards
72.6%

Construction 6.3%

Real estate 6.6%
Electric devices 7.2%

Retail andrestaurants
8.5%

Japan Real Estate Investment Corporation 3

New Portfolio Property
For the period from October 1, 2008 to March 31, 2009

Shiodome Building
Property Summary
Type of specified asset:
Acquisition price:
Acquisition date:
Location:
Usage:
Site area:
Floor area of building:
Structure:

Completion:

Trust beneficiary right intrust of real estate (Note)¥21,250 million($216 million)
December 19, 2008
Minato-ku, Tokyo
Office, shop
Approx. 12,046m2(129,662ft2)
115,930.83m2 (1,247,868ft2)
Steel-framed structure,steel-framed reinforced
concrete structure, flat roof
Above ground: 24 floors
Below ground: 2 floors
December 2007

Note: quasi-co-ownership, 10%

When making a decision about acquisition,
the Company assessed this property with particular attention to the following two points.

• Located just a three-minute walk from JR Hamamatsucho
Station and Toei Subway Daimon Station, the Shiodome
Building allows for easy access to major areas in the Tokyo
Metropolitan area.
• Very convenient access to widespread transportation networks,
with key Shinkansen stations such as Tokyo and Shinagawa being
5–6 minutes away and Haneda Airport 25 minutes away via
monorail.

4 Japan Real Estate Investment Corporation

Da imo n

World Trade
CenterBuilding

Kyu-shibarikyu
Onshi Teien
iba

Floor load
OthersLi ne

M et ro po lit
Ex pres sw anayeshElectric capacity
Air conditioning system

To ei O ed oTak2,900mm (3,200mm in one section)
100mm (400mm in one section)
3,501m2 (effective floor area exceeds
1,000 tsubo with no pillars)
60VA/m 2
Individual air conditioning(maximum of 102 to 104 zones per floor)
500kg/m2 (1,000kg/m2 in one section)
Around-the-clock entry and exit
by security card (contactless IC card key)

Shiodome Building

Hamam
atsucho

Ceiling height
OA floorStandard floor area

To ei Mi ta Lin

115,930.83m 2 (35,069.07 tsubo)

Sh ib ak oe nFloor area of building

To ei As ake

us a Li ne

On

arim

• With the recent completion of this property in December 2007,
the Shiodome Building also possesses advantages in terms of scale,and it meets all high-grade specifications.

Da im on• The Shiodome Building is the last building constructed under
the Shiodome SIO-SITE (Shiodome Land Readjustment Project),which is the largest-scale redevelopment project in the nation.
The project was carried out under the unified efforts of the Tokyo
Metropolitan Government and the private sector.
Being favorably situated at the area in front of JR Hamamatsucho
Station, constituting the south gateway of the Shiodome area,
the Shiodome Building emerges as a state-of -the-art multiplex
building that provides the functionality of an urban community
as well as an office building.

2. Highly convenient access to transportationon

1. A high degree of scarcity after the recent
completion of a large-sized property within
three central wards of Tokyo

Subsequent Events
After the period ended March 31, 2009

Transfer of Unused Development Rights of the Mitsubishi UFJ Trust and Banking Building Site
A decision was made to transfer the unused floor area ratio—equivalent to 65%—of the Mitsubishi UFJ Trust and Banking Building
Site,* 1 in which the Company has part ownership, to a new building scheduled to be constructed under the Marunouchi 1-4 Plan (acombined replacement of the Togin Building, the Sumitomo Trust & Banking Tokyo Building and the Mitsubishi UFJ Trust andBanking Tokyo Building) adjacent to said building site.
Outline of the transfer

65%

65%

Marunouchi 1- 4 Plan

1,235% (Designated floor area ratio at
Marunouchi 1-Chome
Specified Block

Scheduled connection* 3 to building underMitsubishi UFJ Trust andBanking Buildingch ia ch iTo z a i

L in eTo k yo

1%

O te mO te ma ch iTo e iM it aL in ethe time of construction 1,234% + floorarea ratio for underground passage
connection 1%)· Standard floor area ratio

O te m a

ch i

Mar u

· Current designated floor area ratio

O te m ai L in e(Standard floor area ratio − designated floorarea ratio) 1,300% − 1,235% =Transfer of 65% unused floor area ratio of
the Industry Club of Japan/Mitsubishi UFJ Trustand Banking Building Site located in the same blockn o u ch· Unused floor area ratio

The gain on the transfer (¥720 million)*2
will be recorded in the 16th Period(ending September 30, 2009).

O te m ach i
d a L ineTransfer price:Transfer date:
Transferees:

Unused floor area ratio equivalent to 65% of
Mitsubishi UFJ Trust and Banking
Building Site (floor space covering this floor area ratio
equivalent to 1,026.88m2 as equity of the Company)¥729 million ($7 million)
September 17, 2009 (scheduled)
The Sumitomo Trust & Banking Co., Ltd. and
Mitsubishi Estate Co., Ltd.

C h iy o

Object of transaction:

the Marunouchi 1-4 Plan via undergroundpassage (floor area ratio equivalent to 1%)

Notes: 1. Mitsubishi UFJ Trust and Banking Building is a unified construction with the Industry Club of Japan Hall, and its joint owners are Mitsubishi Estate Co., Ltd., theIndustry Club of Japan and the Company. Please refer to section I-6, Mitsubishi UFJ Trust and Banking Building, on Page 15 of Overview of Portfolio Properties for a
description of this building.
2. The forecasted earnings figure from this transfer was disclosed with the announcement of earnings results for the 15th fiscal period (ended March 31, 2009) on May 18,
2009, although future fluctuations are possible.
3. Owing to construction of an underground passage, it will be possible to directly access Tokyo Metro Otemachi Station from the Mitsubishi UFJ Trust and Banking
Building via the new building scheduled to be constructed under the Marunouchi 1-4 Plan.

Transfer of Asset (Part of Jingumae Media Square Building Site)

ae

ma

um

iji

ing

gu

ijij

Jingumae Media Square
Building

iS
or
i-d
eij

Land to betransferred(137.01m 2)

M

The gain on the transfer (¥880 million)*2 will berecorded in the 17th Period (ending March 31, 2010).

Fu

ku

tos

Building
t.

Site

hin

Li n

e

Area:
Transfer price:Transfer date:

Land (Part of Jingumae Media Square Building* Site)
Part of 6-25-7, 32, 40 and 50 Jingumae, Shibuya-ku, Tokyo
Whole part of 6-319-5, 28 and 30 Jingumae,
Shibuya-ku, Tokyo
137.01m2 (1,475ft2)
Tokyo City Planning¥1,507 million ($15 million)
Road Line
October 30, 2009 (scheduled)Me

Me

Asset to be transferred:
Location:

Ch iyo da Lin e1

jin

Outline of the transfere

As part of the land appropriation for the expansion of Meiji-Dori St., etc., for which approval was granted on March 31, 2004, theCompany decided to transfer its part of the Jingumae Media Square Building Site to the Tokyo Metropolitan Government on October30, 2009.

Notes: 1. Please refer to section I-27, Jingumae Media Square Building, on Page 18 of Overview of Portfolio Properties for a description of this building.
2. The forecasted earnings figure from this transfer was disclosed with the announcement of earnings results for the 15th fiscal period (ended March 31, 2009) on May 18,
2009, although future fluctuations are possible.

Japan Real Estate Investment Corporation 5

Histor y after IPO
In September 2001, the Company became the first J-REIT in Japan listed on the Tokyo Stock
Exchange (“TSE”). Since then, the Company has targeted stable management to fulfill its goal of
maintaining and increasing dividends per unit over the medium to long term. The Company’s growthis based on external growth strategies that aim to increase earnings through the acquisition and transfer of properties as well as internal growth strategies that seek to optimize earnings from properties

Occupancy rate
(Note)

94.6%

94.0%

95.3%

94.4%

95.1%

94.8%

93.6%

Steady growth inasset size

First J-REIT in Japan listed on
TSE began with ¥92.8 billion in assets.

Total acquisition price(Number of properties)¥218,437(Note)¥144,697¥92,845

million(24)¥164,277¥183,542
million(30)

million(27)¥192,607
million(32)¥239,827
million(39)

million(36)

million(20)

At IPO
Sept. 2001

Dividend per unit

Period ended
Sept. 2002

Period ended
Mar. 2003

Period ended
Sept. 2003

Period ended
Mar. 2004

Period ended
Sept. 2004

¥14,983¥12,853¥14,455¥15,117¥14,602¥14,711

June 2002
First Investment
Corporation
Bond Issue(First for a J-REIT)

Bond issues

Listing and issuanceof units

Period ended
Mar. 2002

Sept. 2001
Listed on TSE
as first J-REIT

May 2002
First Follow-On(First for a J-REIT)

Apr. 2003
Second/Third Investment
Corporation Bond Issue

Oct. 2003
Second Follow-On

Sept. 2001
IPO
Note: Total acquisition price, number of properties and occupancy rate do not include the land and building adjacent to the Ryoshin Ginza East Mirror Building.

6 Japan Real Estate Investment Corporation

already held. The size of the Company’s assets (total acquisition price) has grown from ¥92.8 billion at
IPO to ¥564.2 billion as of the 15th fiscal period due to the steady achievement of external growthstrategies. However, in terms of internal growth strategies, ongoing efforts are being made in suchareas as maintaining stable occupancy rates and reducing building management costs.

95.9%
97.6%

98.6%

98.7%

98.2%

96.1%

95.5%

¥542,969¥564,219

98.7%

97.8%

Built a portfolio that is worth
over ¥560 billion
Keep stable
occupancy rate
¥518,969¥412,766¥418,693

million(52)

million(49)¥441,276¥446,940

million(50)

million(50)

million(53)

million(54)

million(55)¥326,560¥290,510
million(46)

million(50)

Period ended
Mar. 2005

Period ended
Sept. 2005

Period ended
Mar. 2006

Period ended
Sept. 2006

Period ended
Mar. 2007

Period ended
Sept. 2007

Period ended
Mar. 2008

Period ended
Sept. 2008

Period ended
Mar. 2009¥15,824¥15,951¥16,172¥17,302¥17,521¥18,500¥29,223¥19,072¥19,020

Sept. 2005
Fourth Investment Corporation
Bond Issue (First J-REIT ever toissue investment corporation bonds
without a negative pledge clauseor other financial covenants)
Apr. 2005
Third Follow-On

June 2007
Fifth/Sixth Investment
Corporation Bond Issue

Oct. 2006
Fourth Follow-On

Mar. 2008
Fifth Follow-On

Japan Real Estate Investment Corporation 7

To Our Unitholders

8 Japan Real Estate Investment Corporation

In this severe market environment,
the Company acquired a newly constructed and highly
competitive building in order to further
strengthen the portfolio quality.
Kazuhiko Arahata
CEO & President of Japan Real Estate
Asset Management Co., Ltd.

BUSINESS PERFORMANCEFOR THE 15TH FISCAL PERIOD
Summary of Financial Results and Cash Dividend
In the 15th fiscal period (October 1, 2008 to March 31, 2009),
Japan Real Estate Investment Corporation ("the Company")
recorded operating revenues of ¥20,716 million ($211 million),up 4.6% compared to the previous period. On the earnings front,
operating income increased 1.5% to ¥9,955 million ($101
million). After deducting expenses for interest payments on loans
and other costs, income before income taxes dipped 0.3% to¥8,426 million ($86 million), and net income decreased by thesame percentage to ¥8,425 million ($86 million).
For the period under review, the Company accordingly
declared a cash dividend of ¥19,020 ($193.63) per unit.

considerably. Consequently, downward trends in prices are being
seen, primarily in relation to less competitive properties.
In this market environment, the Company acquired a
10% quasi-co-ownership worth ¥21,250 million ($216 million)of the trust beneficiary right in trust of real estate for the highly
competitive Shiodome Building (hereafter Shiodome Building
Trust Beneficiary) during the period under review, further
strengthening the quality of the Company's portfolio. As a result,
the Company's properties as of March 31, 2009 consisted of 55
office buildings with a total acquisition price of ¥564,219 million($5,744 million). Total leasable space was 516,411 m2(5,558,604ft2) with a total of 993 tenants.**The number of properties, total acquisition price, total leasable space and the number oftenants do not include the land and building adjacent to the Ryoshin Ginza East Mirror
Building, which was acquired for the purpose of building extension.

Finance Activities
Operating Environment and Performance
During the period under review, there were clear signals that theJapanese economy had slid into a recession. With a drop in
corporate-sector earnings stemming from the impact of
disruptions in global financial markets, the repercussions for thereal economy came in the form of a decline in capital investment
and a worsening employment situation.
Vacancy rates in the market for leased office space
increased nationwide. This rise is due to such factors as decreased
demand in the wake of worsening corporate performance andcutbacks in floor space under contract undertaken to implement
measures that include withdrawing from contracts and reducing
expenses, or, more specifically, a growing trend toward leasecancellation.
Under these severe circumstances, the Company
maintained a high occupancy rate of 95.5% at the end of theperiod under review, owing to the high quality of its existing
properties and efforts to upgrade building facilities throughappropriate refurbishment in order to maintain and enhancefunctions and by engaging in vigorous activities to attract new
tenants.
Turning to the property market, against the backdrop of
an increasingly stringent attitude toward providing loans among
financial institutions for purchasing property, transactions fell

The Company procured ¥21,000 million ($214 million) on
December 19, 2008 in combined short- and long-term loans toacquire quasi-co-ownership in the Shiodome Building Trust
Beneficiary. Furthermore, in order to provide funds for repaying
existing short- and long-term loans, the Company procured¥7,500 million ($76 million) in short-term loans and ¥2,000
million ($20 million) in long-term loans on March 24, 2009 and¥5,000 million ($51 million) in long-term loans on March 30,
2009. As a result of these finance activities, as of March 31, 2009,
the Company's total interest-bearing debt amounted to ¥220,500
million ($2,245 million), consisting of long-term loans of¥127,500 million ($1,298 million) (including the current portionof ¥12,000 million [$122 million]), short-term loans of ¥48,000
million ($489 million), and investment corporation bonds of¥45,000 million ($458 million).
As of March 31, 2009, the Company's long-term, fixedinterest debt ratio (ratio of long-term, fixed-interest debt
including the current portion of long-term loans to total interestbearing debt) stood at 78.2%, and the LTV ratio (ratio of interestbearing debt to total assets) was 39.0%. As these results indicate,
the Company has been able to maintain a sound and conservative
financial standing.
The Company's credit ratings as of March 31, 2009 wereas follows.
Japan
Japan Real
Real Estate
Estate Investment
Investment Corporation
Corporation 9

The Company — a J-REIT leader with exceptional management capabilities andfinancial soundness — is committed to implementing the aforementioned
initiatives in a reliable and enthusiastic manner to maximize unitholder value
through optimal investment management.

Rating Agency
Standard & Poor's Ratings Services
Moody's Investors Service Inc.
Rating and Investment
Information, Inc.

Credit Rating
Long-term: AA-; Short-term: A-1+;
Outlook: Stable
Rating: Aa3*
Rating: AA; Outlook: Stable* It was announced on April 21, 2009 that Moody's Investors Service Inc. lowered theCompany's rating to A1 and that its rating outlook remains stable.

OUTLOOK
Trends in the Rental Office Market
Forecasts indicate that the economy will continue to remainstagnant due to the disruptions in international financial markets
that have yet to come to an end and the persisting severity of theearnings environment accompanying the worsening of the real
economy in Japan.
The real estate industry is fully expected to remain
sluggish due to a lack of improvement in the fund-raising
environment. In addition, forecasting trends in the rental officemarket have become even more difficult due to ongoing increases
in vacancy rates accompanying the rapid deterioration of thecorporate earnings environment.
On the other hand, when selecting buildings, tenants inthis market are making increasingly stringent demands ranging
from location, building quality and features, to building
management and value-added services. We anticipate that it will
be even more important for suppliers to provide services that
correctly and promptly reflect the needs of tenants and to deliver
added value that differentiates their buildings from thecompetitions.
In the real estate market, banking facilities haveconsistently adopted a more prudent stance toward financing forthe real estate sector. In this context, we believe that both thesoundness of the Company's financial standing and its ability to
procure funds are increasingly becoming the key strategies foracquiring prime properties.

The Company's Management Policies
Under these circumstances, the Company adheres to the

10 Japan Real Estate Investment Corporation

following management policies in order to maintain and improveearnings.
First, the Company will work to strengthen its
relationship of trust with existing tenants. As of March 31, 2009,
the Company had contracts with 11 property managementcompanies. Most of these companies were already managing theirrespective buildings before the Company acquired them and havethus built relationships of trust with their tenants. The Company
will work to further strengthen these relationships by anticipating
tenants' needs and providing tailored services in order to increasetenant satisfaction and subsequently maintain occupancy rates
and restrain rent reduction requests.
Second, we will fill vacancies in a prompt manner. In
cooperation with the property management companies
mentioned above, the Company actively seeks the mostappropriate tenants for each property, based on location andfeatures, in order to fill current and anticipated vacancies as
rapidly as possible. We are also working to uncover additional
demand for floor space among our existing tenants.
Third, we will stabilize revenues. With the aim ofstabilizing revenues, the Company is endeavoring to apply fixedand long-term leasing agreements with its large-scale tenants.
Fourth, we will reduce management costs. The Company
has introduced sound competitive principles for its multiple
property management companies to follow. These companies
are also revamping their management systems and cost structureson an ongoing basis.
The Company has adopted the following policies foracquiring properties.
First, to access important information quickly, theCompany is enhancing its property information channels, whileworking to develop new channels.
Second, in its acquisition activities, the Company willcontinue to meticulously monitor and examine economic,
physical, and legal factors, including rights-related issues whenselecting properties. With regard to the structure of buildings,
we require buildings to meet or exceed new earthquake-resistancestandards and are targeting properties capable of maintaining acompetitive edge in terms of the facilities they offer over theTaketo Yamazaki (Left)
Executive Director ofJapan Real Estate Investment Corporation

Kazuhiko Arahata (Right)
CEO & President of Japan Real Estate
Asset Management Co., Ltd.

medium to long term.
Third, in accordance with its acquisition policies, theCompany's general target for the regional diversity of properties
is for 70% or more of its properties to be located within the Tokyo
metropolitan area, with the remaining 30% or less located inother major cities.
Under these policies, the Company will continue toacquire highly competitive properties while also considering
suitable timing for the replacement of assets in order to further
strengthen the quality of its portfolio.

The Company's Financial Strategy
The Company in principle maintains an LTV ratio that does notexceed 65%. To ensure an even lower ratio of interest-bearing
debt, the Company adopts the conservative target level of 30%
to 40%.
Concerning the financing of property acquisitions, theCompany flexibly selects a variety of financial instruments,
including investment corporation bonds, while maintaining asound and conservative financial standing and monitoring trends
in financial markets. When procuring a loan, we are guided by
prudent and stable financial policies. Working to minimize
funding costs, we also negotiate with several qualified institutional
investors (limited, however, to institutional investors inaccordance with the Special Taxation Measures Law of Japan)
before determining the various components that encompass loan
procurement.

($103 million), income before income taxes of ¥8,390 million($85 million) and net income of ¥8,390 million ($85 million).
We plan to declare a cash dividend of ¥18,940 ($192.81) per
unit.
Forecasting trends in the J-REIT market have become
even more difficult than anticipated. The reasons for this include
the reduction of funds flowing into the J-REIT market due tothe impact of long-term global financial instability, the further
slowing of the world economy and significant fluctuations instock and currency exchange markets, as well as the increasingly
stringent attitude towards providing loans among Japanesefinancial institutions.
In such an environment, the Company — a J-REIT leader
with exceptional management capabilities and financial
soundness — is committed to implementing the aforementioned
initiatives in a reliable and enthusiastic manner to maximize
unitholder value through optimal investment management.
We thank you and ask you, all of our unitholders, for yourcontinuing support and understanding.

Taketo Yamazaki
Executive Director of Japan Real Estate Investment Corporation

Performance Forecasts for the 16th and 17th Periods
For the 16th fiscal period (Apri1 1, 2009 to September 30, 2009),
the Company forecasts operating revenues of ¥21,530 million($219 million), operating income of ¥10,090 million ($103
million), income before income taxes of ¥8,350 million ($85
million) and net income of ¥8,350 million ($85 million). We
plan to declare a cash dividend of ¥18,850 ($191.90) per unit.
For the 17th fiscal period (October 1, 2009 to March 31,2010), the Company forecasts operating revenues of ¥21,310
million ($217 million), operating income of ¥10,140 million

Kazuhiko Arahata
CEO & President of Japan Real Estate Asset Management Co., Ltd.

Japan
Japan Real
Real Estate
Estate Investment
Investment Corporation
Corporation 11

The Portfolio of Japan Real Estate Investment Corporation
As of March 31, 2009

Properties Roster
Location

Type ofspecified asset

Acquisition
dateTokyo 23 wards● I- 1Genki Medical Plaza● I- 2
Kitanomaru Square● I- 3
MD Kanda Building● I- 4
Kandabashi Park Building● I- 5
Nibancho Garden● I- 6
Mitsubishi UFJ Trust and Banking Building● I- 7
Burex Kojimachi Building● I- 8
Sanno Grand Building

Iidabashi, Chiyoda-ku
Kudan-Kita, Chiyoda-ku
Kanda-Mitoshirocho, Chiyoda-ku
Kanda-Nishikicho, Chiyoda-ku
Nibancho, Chiyoda-ku
Marunouchi, Chiyoda-ku
Kojimachi, Chiyoda-ku
Nagatacho, Chiyoda-ku

Real property
Real property
Real property
Real property
Real property
Real property
Real property
Real property

I- 9● I- 10● I- 11● I- 12● I- 13● I- 14● I- 15● I- 16● I- 17● I- 18● I- 19● I- 20● I- 21● I- 22● I- 23● I- 24● I- 25● I- 26● I- 27● I- 28● I- 29

Yurakucho, Chiyoda-ku
Nihonbashi-Kodenmacho, Chuo-ku
Kyobashi, Chuo-ku
Ginza, Chuo-ku
Ginza, Chuo-ku
Harumi, Chuo-ku
Kita-Aoyama, Minato-ku
Kaigan, Minato-ku
Shiba, Minato-ku
Shiba, Minato-ku
Nishi-Shinjuku, Shinjuku-ku
Nishi-Shinjuku, Shinjuku-ku
Higashi-Gotanda, Shinagawa-ku
Higashi-Gotanda, Shinagawa-ku
Omori-Kita, Ota-ku
Sendagaya, Shibuya-ku
Yoyogi, Shibuya-ku
Jingumae, Shibuya-ku
Jingumae, Shibuya-ku
Shibuya, Shibuya-ku
Ebisu, Shibuya-ku

Real property
Trust
Real property
Real property
Real property
Real property
Real property
Trust
Trust
Trust
Real property
Real property
Trust
Real property
Trust
Real property
Real property
Real property
Real property
Real property
Real property

Harmony Tower
Otsuka Higashi-Ikebukuro Building
Ikebukuro 2Chome Building
Ikebukuro YS Building
Tokyo metropolitan area excluding 23 wards● II- 1
Hachioji First Square

Honcho, Nakano-ku
Higashi-Ikebukuro, Toshima-ku
Ikebukuro, Toshima-ku
Minami-Ikebukuro, Toshima-ku

Real property
Trust
Trust
Real property

10/31/2002
02/24/2006
05/31/2002
08/15/2002
04/01/2005
03/28/2007
07/29/2005
01/31/2005
04/03/2006
total
08/01/2003
09/25/2001
07/22/2002
03/10/2005
03/15/2005
12/18/2007
03/14/2003
12/19/2008
09/10/2001
09/25/2001
09/01/2004
09/13/2005
09/25/2001
11/01/2004
09/10/2001
03/24/2004
04/01/2004
11/22/2002
10/09/2003
11/30/2001
11/14/2003
04/01/2004
total
02/28/2005
09/25/2001
09/25/2001
08/02/2004

5,000
81,555
9,520
4,810
14,70044,7007,000
10,20010,70020,900
7,200
3,173
5,250
16,8305,353
26,8007,680
21,250
4,859
2,808
7,830
9,350
2,738
5,500
5,123
6,670
8,700
4,885
12,20034,600
3,740
360
4,100
8,500
3,541
1,728
4,500

Hachioji, Tokyo

Real property

II- 2

Saitama, Saitama Prefecture

Real property

MM Park Building
Kawasaki Isago Building
Musashi Kosugi STM Building
Other major cities● III- 1
8.3 Square Kita Building● III- 2
Jozenji Park Building● III- 3
Sendai Honcho Honma Building

Yokohama, Kanagawa Prefecture
Kawasaki, Kanagawa Prefecture
Kawasaki, Kanagawa Prefecture

Real property
Trust
Real property

03/31/2005
03/19/2008
total
09/25/2001
10/11/2001
total
03/24/2008
09/25/2001
03/25/2008

3,300
2,379
5,679
1,232
1,342
2,574
37,4003,375
4,000

Sapporo, Hokkaido
Sendai, Miyagi Prefecture
Sendai, Miyagi Prefecture

Real property
Real property
Trust

●

III- 4

Kanazawa Park Building

Kanazawa, Ishikawa Prefecture

Real property●

III- 5

Nishiki Park Building

Nagoya, Aichi Prefecture

Real property

III- 6● III- 7● III- 8● III- 9● III- 10● III- 11

Hirokoji Sakae Building
Nagoya Hirokoji Building
Nagoya Misono Building
Kyoto Shijo Kawaramachi Building
Shin-Fujita Building
Sakaisujihonmachi Building

Nagoya, Aichi Prefecture
Nagoya, Aichi Prefecture
Nagoya, Aichi Prefecture
Kyoto, Kyoto Prefecture
Osaka, Osaka Prefecture
Osaka, Osaka Prefecture

Real property
Real property
Real property
Real property
Trust
Real property

III- 12

Midosuji Daiwa Building

Osaka, Osaka Prefecture

Trust

●

III- 13● III- 14

Lit City Building
NHK Hiroshima Broadcasting Center Building

Okayama, Okayama Prefecture
Hiroshima, Hiroshima Prefecture

Real property
Real property

III- 15
III- 16● III- 17

Tosei Tenjin Building
Tenjin Crystal Building
Hinode Tenjin Building
Total

Fukuoka, Fukuoka Prefecture
Fukuoka, Fukuoka Prefecture
Fukuoka, Fukuoka Prefecture

Real property
Real property
Trust

06/01/2007
01/31/2005
09/25/2001
06/28/2006
total
02/28/2002
03/03/2003
total
10/02/2006
11/01/2006
total
09/22/2006
09/10/2001
08/08/2003
12/20/2001
09/01/2008
09/25/2001
12/26/2003
total
09/25/2001
02/28/2002
total
02/01/2006
03/25/2004
03/03/2008
total
09/25/2001
06/01/2005
09/10/2001

7,100
1,000
2,924
250
3,174
2,880
1,700
4,580
3,850
1,300
5,150
1,680
14,5331,865
2,650
24,000
2,264
1,900
4,164
6,934
7,380
14,314
4,650
1,320
1,450
2,770
1,550
5,000
3,657
564,219

Number●Name of building

Yurakucho Denki Building
Kodenmacho Shin-Nihonbashi Building
Burex Kyobashi Building
Ginza Sanwa Building
Ryoshin Ginza East Mirror Building
Harumi Center Building
Aoyama Crystal Building
Shiodome Building
Shiba 2Chome Daimon Building
Cosmo Kanasugibashi Building
Shinwa Building
Tokyo Opera City Building
Takanawadai Building
Higashi-Gotanda 1Chome Building
Omori-Eki Higashiguchi Building
Nippon Brunswick Building
Yoyogi 1Chome Buildingda Vinci Harajuku
Jingumae Media Square Building
Shibuya Cross Tower
Ebisu Neonato

I- 30
I- 31
● I- 32● I- 33●●●

Saitama Urawa Building

II- 3● II- 4● II- 5
●

●

●

●
●

Note : The land and building adjacent to the Ryoshin Ginza East Mirror Building (acquisition price: ¥1,800 million) are not included in the above list.

12 Japan Real Estate Investment Corporation

Acquisition price(¥ mil)(0.9%)(14.5%)(1.7%)(0.9%)(2.6%)(7.9%)(1.2%)(3.7%)(1.3%)(0.6%)(0.9%)(3.0%)(0.9%)(4.7%)(1.4%)(3.8%)(0.9%)(0.5%)(1.4%)(1.7%)(0.5%)(1.0%)(0.9%)(1.2%)(1.5%)(0.9%)(2.2%)(6.1%)(0.7%)(1.5%)(0.6%)(0.3%)(0.8%)(1.0%)(0.5%)(6.6%)(0.6%)(0.7%)(1.3%)(0.2%)(0.6%)(0.8%)(0.9%)(0.3%)(2.6%)(0.3%)(0.5%)(4.3%)(0.7%)(2.5%)(0.8%)(0.5%)(0.3%)(0.9%)(0.6%)(100.0%)Percentage ofownership of thebuilding

Completion

Appraisal value atthe end of
period (¥ mil)

100.0%
100.0%
100.0%
56.76%
31.345%19.38402%
100.0%
99.0%

1985
2006
1998
1993
2004
2003
2005
1966

6,150
83,70010,6006,350
17,40049,1006,850
30,5004,791m2
25,678m2
6,269m2
3,687m2
9,316m2
11,922m2
4,495m2
20,865m2(51,577ft2)(276,402ft2)(67,480ft2)(39,695ft2)(100,282ft2)(128,332ft2)(48,384ft2)(224,594ft2)

4,791m2
25,678m2
4,252m2
3,224m2
9,316m2
11,922m2
4,495m2
20,776m2

10.78%
100.0%
100.0%
70.95%
100.0%
100.0%
100.0%
10.0%
100.0%
100.0%
100.0%
8.368%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
12.29939%

1975
1991
2002
1982
1998
2006
1982
2007
1984
1992
1989
1996
1991
2004
1989
1974
2003
1987
1998
1976
1994

8,730
4,070
6,970
16,9004,920
24,6009,210
21,800
7,290
3,640
9,300
11,300
2,600
6,900
5,890
8,970
13,1006,480
15,00049,0005,140

4,694m2
3,897m2
4,279m2
4,329m2
2,875m2
20,812m2
4,898m2
8,037m2
9,631m2
4,062m2
6,197m2
9,246m2
4,067m2
5,205m2
7,708m2
7,356m2
7,772m2
3,147m2
5,558m2
29,754m2
2,462m2(50,531ft2)(41,950ft2)(46,068ft2)(46,604ft2)(30,949ft2)(224,022ft2)(52,724ft2)(86,520ft2)(103,671ft2)(43,726ft2)(66,708ft2)(99,529ft2)(43,783ft2)(56,035ft2)(82,972ft2)(79,180ft2)(83,660ft2)(33,876ft2)(59,832ft2)(320,273ft2)(26,511ft2)

29.253305%
100.0%
100.0%
100.0%

1997
1987
1990
1989

12,800
3,850
1,580
5,400

10,929m2
7,163m2
2,186m2
5,797m2

80.4%

1996

5,910

100.0%

1990

100.0%
100.0%
34.32%

Occupancy
rate

Numberof tenants(51,577ft2)(276,402ft2)(45,775ft2)(34,705ft2)(100,282ft2)(128,332ft2)(48,384ft2)(223,638ft2)

100.0%
100.0%
67.8%
87.4%
100.0%
100.0%
100.0%
99.6%

1
5
4
6
1
10
1
44

224
1,871
100
163
490
995
162
1,068

(1.1%)(9.0%)(0.5%)(0.8%)(2.4%)(4.8%)(0.8%)(5.2%)

4,449m2
3,897m2
4,279m2
3,993m2
2,875m2
20,425m2
4,898m2
7,980m2
9,631m2
4,062m2
6,197m2
8,538m2
4,067m2
5,205m2
7,519m2
7,356m2
7,772m2
3,147m2
5,075m2
26,825m2
1,836m2(47,897ft2)(41,950ft2)(46,068ft2)(42,981ft2)(30,949ft2)(219,858ft2)(52,724ft2)(85,901ft2)(103,671ft2)(43,726ft2)(66,708ft2)(91,909ft2)(43,783ft2)(56,035ft2)(80,934ft2)(79,180ft2)(83,660ft2)(33,876ft2)(54,634ft2)(288,745ft2)(19,773ft2)

94.8%
100.0%
100.0%
92.2%
100.0%
98.1%
100.0%
99.3%
100.0%
100.0%
100.0%
92.3%
100.0%
100.0%
97.5%
100.0%
100.0%
100.0%
91.3%
90.2%
74.6%

13
10
1
9
8
7
7
27
19
9
10
100
1
4
18
21
7
5
7
56
2

315
180
150
391
146
775
268
332
340
144
294
523
121
220
260
315
418
203
333
1,464
127

(1.5%)(0.9%)(0.7%)(1.9%)(0.7%)(3.7%)(1.3%)(1.6%)(1.6%)(0.7%)(1.4%)(2.5%)(0.6%)(1.1%)(1.3%)(1.5%)(2.0%)(1.0%)(1.6%)(7.1%)(0.6%)(117,646ft2)(77,106ft2)(23,532ft2)(62,401ft2)

10,929m2
7,163m2
1,941m2
5,797m2(117,646ft2)(77,106ft2)(20,902ft2)(62,401ft2)

100.0%
100.0%
88.8%
100.0%

18
7
8
8

468
194
72
210

(2.3%)(0.9%)(0.4%)(1.0%)

10,068m2(108,378ft2)

10,068m2(108,378ft2)

100.0%

43

265(1.3%)

2,600

4,510m2(48,550ft2)

4,421m2(47,588ft2)

98.0%

13

139

(0.7%)

2007
1990
1990

37,0003,230
3,850

38,584m2
6,831m2
5,394m2(415,315ft2)(73,537ft2)(58,071ft2)

36,612m2
6,831m2
5,394m2(394,098ft2)(73,537ft2)(58,071ft2)

94.9%
100.0%
100.0%

26
13
25

1,388
172
163

(6.7%)(0.8%)(0.8%)

100.0%
50.0%
100.0%

2006
1993
1991

7,010
1,110
3,540

12,265m2
2,518m2
6,241m2(132,030ft2)(27,106ft2)(67,185ft2)

12,265m2
2,468m2
6,168m2(132,030ft2)(26,569ft2)(66,398ft2)

100.0%
98.0%
98.8%

8
17
18

330
71
172

(1.6%)(0.3%)(0.8%)

89.0%

1991

6,180

20,889m2(224,855ft2)

17,424m2(187,561ft2)

83.4%

67

511

(2.5%)

57.04651%

1995

5,180

8,059m2(86,747ft2)

7,876m2(84,787ft2)

97.7%

49

294

(1.4%)

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

1987
1987
1991
1982
1995
1992

1,720
15,6001,440
2,190
23,2004,790

3,911m2
21,624m2
3,470m2
6,800m2
28,414m2
11,574m2(42,103ft2)(232,763ft2)(37,354ft2)(73,195ft2)(305,852ft2)(124,587ft2)

3,911m2
20,676m2
3,113m2
5,668m2
23,847m2
11,520m2(42,103ft2)(222,557ft2)(33,513ft2)(61,013ft2)(256,688ft2)(124,004ft2)

100.0%
95.6%
89.7%
83.4%
83.9%
99.5%

15
27
9
29
35
16

115
707
86
128
851
279

(0.6%)(3.4%)(0.4%)(0.6%)(4.1%)(1.3%)

100.0%

1991

18,40020,450m2(220,127ft2)

20,166m2(217,069ft2)

98.6%

23

679

(3.3%)

27.7488%
48.753%

2005
1994

5,330
3,170

9,965m2
9,860m2(107,269ft2)(106,134ft2)

9,511m2
9,860m2(102,376ft2)(106,134ft2)

95.4%
100.0%

39
12

285
270

(1.4%)(1.3%)

100.0%
100.0%
74.4844%

1992
1993
1987

1,380
3,960
3,890
636,770

4,000m2(43,057ft2)
5,331m2(57,387ft2)
5,852m2(62,995ft2)
493,317m2 (5,310,023ft2)

100.0%
88.5%
100.0%
95.5%

20
25
10
993

84
186
181
20,716(0.4%)(0.9%)(0.9%)(100.0%)

Leasable space

4,000m2(43,057ft2)(64,839ft2)
6,023m2
5,852m2(62,995ft2)
516,411m2 (5,558,604ft2)

Leased space

Revenues from leasing
operations (¥ mil)Japan Real Estate Investment Corporation 13

Major Tenants Roster
Rank

Name of tenant

Name of building

Leased space% of totalleased space

1
2
3
4
5
6
7
8
9
10

Banyu Pharmaceutical Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Seven & i Holdings Co., Ltd.
Space Design, Inc.
FAST RETAILING CO., LTD.
JSOL Corporation (Note 1)(Note 2)
TOTO LTD.
The Dai-ichi Mutual Life Insurance Company
JGC Corporation

Kitanomaru Square (also includes 1 other building)
Mitsubishi UFJ Trust and Banking Building
Nibancho Garden
Burex Kojimachi Building (also includes 1 other building)
Kitanomaru Square
Harumi Center Building
MM Park Building
Midosuji Daiwa Building (also includes 1 other building)Midosuji Daiwa Building (also includes 5 other buildings)
MM Park Building

17,014m2 (183,144ft2)
10,665m2 (114,802ft2)
9,316m2 (100,282ft2)
8,774m2 (94,453ft2)
8,476m2 (91,245ft2)
7,634m2 (82,178ft2)
6,936m2 (74,665ft2)
6,906m2 (74,341ft2)
6,815m2 (73,366ft2)
5,560m2 (59,853ft2)

3.5%
2.2%
1.9%
1.8%
1.7%
1.5%
1.4%
1.4%
1.4%
1.1%

Notes: 1. JRI Solutions, Limited changed into JSOL Corporation on January 5, 2009.
2. Not disclosed as per tenant request

Locations of Portfolio Properties
II-1 to II-5: Tokyo metropolitan area,
excluding 23 wards

III-1 to III-17: Other major cities

III-1

II-2
II-1
III-2

III-3

II-5
II-3

III-4

II-4

III-7III-5
III-10
III-6
III-13 III-11
III-8
III-12 III-9
III-15 III-14
III-17 III-16

I-1 to I-33: Tokyo
23 wards

I-32
I-33 I-31
I-30

I-2

I-1

I-3
I-5
I-19
I-4
I-24
I-10
I-7
I-20
I-6
I-11
I-25 I-26
I-8
I-12
I-9
I-27
I-13
I-28
I-15
I-17 I-16 I-14
I-29
I-18
I-21
I-22

I-23

Tokyo Station

14 Japan Real Estate Investment Corporation

Over view of Portfolio Properties As of March 31, 2009
Note: Concerning real estate or trust beneficiary rights in trust of real estate of which the Company is a partial owner through co-ownership or compartmentalized building units or
quasi-co-ownership, the figures for “Site area” and “Floor area of building” represent total site area and total floor space for the entire building.

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Genki Medical Plaza

Kitanomaru Square

● I-1

● I-2

Chiyoda-ku, Tokyo
1,052.80m2 (11,332ft2)
6,722.02m2 (72,355ft2)
Above ground: 8 floors
Below ground: 1 floor
September 1985

Location :Site area :Floor area of building :Structure :Completion :MD Kanda Building

Kandabashi Park
Building

● I-3

● I-4

Chiyoda-ku, Tokyo
1,085.83m2 (11,688ft2)
8,185.11m2 (88,104ft2)
Above ground: 10 floors
February 1998

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Chiyoda-ku, Tokyo
5,821.03m2 (62,657ft2)
57,279.20m2 (616,548ft2)
Above ground: 26 floors
Below ground: 2 floors
January 2006

Chiyoda-ku, Tokyo
1,218.56m2 (13,116ft2)
9,370.25m2 (100,860ft2)
Above ground: 10 floors
Below ground: 1 floor
July 1993

Nibancho Garden

Mitsubishi UFJ Trust andBanking Building

● I-5

● I-6

Chiyoda-ku, Tokyo
11,003.87m2 (118,445ft2)
57,031.06m2 (613,877ft2)
Above ground: 14 floors
Below ground: 2 floors
April 2004

Location :Site area :Floor area of building :Structure :Completion :Chiyoda-ku, Tokyo
8,100.39m2 (87,192ft2)
108,171.67m2 (1,164,349ft2)
Above ground: 29 floors
Below ground: 4 floors
February 2003

Burex Kojimachi
Building

Sanno Grand Building

● I-7

● I-8

Chiyoda-ku, Tokyo
967.67m2 (10,416ft2)
6,526.64m2 (70,252ft2)
Above ground: 11 floors
Below ground: 1 floor
January 2005

Location :Site area :Floor area of building :Structure :Completion :Chiyoda-ku, Tokyo
3,663.93m2 (39,438ft2)
33,875.95m2 (364,637ft2)
Above ground: 10 floors
Below ground: 3 floors
September 1966

Japan Real Estate Investment Corporation 15

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Yurakucho Denki
Building

Kodenmacho ShinNihonbashi Building● I-9● I-10Chiyoda-ku, Tokyo
5,749.91m2 (61,891ft2)
70,287.65m2 (756,569ft2)
Above ground: 20 floors
Below ground: 4 floors
September 1975

Location :Site area :Floor area of building :Structure :Completion :Chuo-ku, Tokyo
773.28m2 (8,324ft2)
5,822.88m2 (62,677ft2)
Above ground: 9 floors
Below ground: 1 floor
November 1991

Burex Kyobashi
Building

Ginza Sanwa Building● I-11● I-12Chuo-ku, Tokyo
756.03m2 (8,138ft2)
5,470.54m2 (58,884ft2)
Above ground: 8 floors
Below ground: 1 floor
February 2002

Location :Site area :Floor area of building :Structure :Completion :Chuo-ku, Tokyo
1,119.27m2 (12,048ft2)
8,851.00m2 (95,271ft2)
Above ground: 9 floors
Below ground: 2 floors
October 1982

Ryoshin Ginza East
Mirror Building

Harumi Center Building● I-13● I-14Chuo-ku, Tokyo
615.25m2 (6,622ft2)
4,104.71m2 (44,183ft2)
Above ground: 8 floors
Below ground: 1 floor
October 1998

Location :Site area :Floor area of building :Structure :Completion :Chuo-ku, Tokyo
4,664.63m2 (50,210ft2)
26,447.27m2 (284,676ft2)
Above ground: 10 floors
November 2006

Aoyama Crystal
Building

Shiodome Building● I-15● I-16

Minato-ku, Tokyo
989.30m2 (10,649ft2)
8,094.36m2 (87,127ft2)
Above ground: 10 floors
Below ground: 4 floors
December 1982

16 Japan Real Estate Investment Corporation

Location :Site area :Floor area of building :Structure :Completion :Minato-ku, Tokyo
Approx. 12,046m2 (129,662ft2)
115,930.83m2 (1,247,868ft2)
Above ground: 24 floors
Below ground: 2 floors
December 2007

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Shiba 2Chome
Daimon Building

Cosmo Kanasugibashi
Building● I-17● I-18Minato-ku, Tokyo
2,820.90m2 (30,364ft2)
16,235.10m2 (174,753ft2)
Above ground: 8 floors
Below ground: 2 floors
March 1984

Location :Site area :Floor area of building :Structure :Completion :Minato-ku, Tokyo
758.54m2 (8,165ft2)
5,420.93m2 (58,350ft2)
Above ground: 9 floors
Below ground: 1 floor
March 1992

Shinwa Building

Tokyo Opera City
Building● I-19● I-20Shinjuku-ku, Tokyo
822.00m2 (8,848ft2)
8,291.69m2 (89,251ft2)
Above ground: 10 floors
Below ground: 1 floor
November 1989

Location :Site area :Floor area of building :Structure :Completion :Shinjuku-ku, Tokyo
18,236.94m2 (196,301ft2)
232,996.81m2 (2,507,954ft2)
Above ground: 54 floors
Below ground: 4 floors
July 1996

Takanawadai Building

Higashi-Gotanda
1Chome Building● I-21● I-22

Shinagawa-ku, Tokyo
1,416.17m2 (15,244ft2)
5,762.70m2 (62,029ft2)
Above ground: 13 floors
January 1991

Location :Site area :Floor area of building :Structure :Completion :Shinagawa-ku, Tokyo
1,539.95m2 (16,576ft2)
6,460.39m2 (69,539ft2)
Above ground: 8 floors
July 2004

Omori-Eki Higashiguchi
Building

Nippon Brunswick
Building● I-23● I-24

Ota-ku, Tokyo
2,199.30m2 (23,673ft2)
14,095.34m2 (151,721ft2)
Above ground: 11 floors
Below ground: 2 floors
July 1989

Location :Site area :Floor area of building :Structure :Completion :Shibuya-ku, Tokyo
1,497.52m2 (16,119ft2)
11,957.38m2 (128,708ft2)
Above ground: 9 floors
Below ground: 2 floors
March 1974

Japan Real Estate Investment Corporation 17

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Yoyogi 1Chome
Buildingda Vinci Harajuku● I-25● I-26

Shibuya-ku, Tokyo
1,755.75m2 (18,899ft2)
10,778.10m2 (116,014ft2)
Above ground: 14 floors
Below ground: 1 floor
October 2003

Location :Site area :Floor area of building :Structure :Completion :Shibuya-ku, Tokyo
839.66m2 (9,038ft2)
4,359.20m2 (46,922ft2)
Above ground: 7 floors
Below ground: 2 floors
December 1987

Jingumae Media
Square Building

Shibuya Cross Tower● I-27● I-28

Shibuya-ku, Tokyo
2,261.68m2 (24,344ft2)
9,420.42m2 (101,400ft2)
Above ground: 9 floors
Below ground: 2 floors
March 1998

Location :Site area :Floor area of building :Structure :Completion :Shibuya-ku, Tokyo
5,153.45m2 (55,471ft2)
61,862.33m2 (665,880ft2)
Above ground: 32 floors
Below ground: 3 floors
April 1976

Ebisu Neonato

Harmony Tower● I-29● I-30

Shibuya-ku, Tokyo
5,005.70m2 (53,881ft2)
36,598.38m2 (393,941ft2)
Above ground: 18 floors
Below ground: 2 floors
October 1994

Location :Site area :Floor area of building :Structure :Completion :Nakano-ku, Tokyo
10,020.52m2 (107,860ft2)
72,729.31m2 (782,851ft2)
Above ground: 29 floors
Below ground: 2 floors
March 1997

Otsuka HigashiIkebukuro Building

Ikebukuro 2Chome
Building● I-31● I-32

Toshima-ku, Tokyo
2,121.39m2 (22,834ft2)
9,531.28m2 (102,594ft2)
Above ground: 8 floors
Below ground: 1 floor
November 1987

18 Japan Real Estate Investment Corporation

Location :Site area :Floor area of building :Structure :Completion :Toshima-ku, Tokyo
397.26m2 (4,276ft2)
3,157.51m2 (33,987ft2)
Above ground: 9 floors
Below ground: 1 floor
May 1990

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Ikebukuro YS
Building

Hachioji First
Square● I-33● II-1

Toshima-ku, Tokyo
1,384.56m2 (14,903ft2)
7,464.64m2 (80,349ft2)
Above ground: 8 floors
Below ground: 1 floor
December 1989

Location :Site area :Floor area of building :Structure :Completion :Saitama Urawa
Building

MM Park Building● II-2● II-3

Saitama, Saitama Prefecture
1,533.06m2 (16,502ft2)
6,258.59m2 (67,367ft2)
Above ground: 8 floors
March 1990

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Hachioji, Tokyo
2,989.33m2 (32,177ft2)
18,329.98m2 (197,302ft2)
Above ground: 12 floors
Below ground: 1 floor
July 1996

Yokohama, Kanagawa Prefecture
6,825.77m2 (73,472ft2)
49,037.51m2 (527,835ft2)
Above ground: 15 floors
Below ground: 1 floor
December 2007

Kawasaki Isago
Building

Musashi Kosugi
STM Building● II-4● II-5

Kawasaki, Kanagawa Prefecture
1,594.50m2 (17,163ft2)
9,623.83m2 (103,590ft2)
Above ground: 12 floors
Below ground: 1 floor
December 1990

Location :Site area :Floor area of building :Structure :Completion :Kawasaki, Kanagawa Prefecture
3,552.15m2 (38,235ft2)
22,839.61m2 (245,843ft2)
Above ground: 8 floors
Below ground: 2 floors
October 1990

8 . 3 Square Kita
Building

Jozenji Park Building● III-1● III-2

Sapporo, Hokkaido
5,541.60m2 (59,649ft2)
16,096.97m2 (173,266ft2)
Above ground: 11 floors
Below ground: 1 floor
December 2006

Location :Site area :Floor area of building :Structure :Completion :Sendai, Miyagi Prefecture
1,566.68m2 (16,864ft2)
7,648.33m2 (82,326ft2)
Above ground: 8 floors
Below ground: 1 floor
January 1993

Japan Real Estate Investment Corporation 19

Location :Site area :Floor area of building :Structure :Completion :Sendai Honcho
Honma Building

Kanazawa Park
Building● III-3● III-4

Sendai, Miyagi Prefecture
1,437.47m2 (15,473ft2)
8,247.50m2 (88,775ft2)
Above ground: 11 floors
November 1991

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Kanazawa, Ishikawa Prefecture
6,642.71m2 (71,501ft2)
43,481.20m2 (468,027ft2)
Above ground: 12 floors
Below ground: 2 floors
October 1991

Nishiki Park Building

Hirokoji Sakae
Building● III-5● III-6

Nagoya, Aichi Prefecture
2,170.45m2 (23,363ft2)
25,091.91m2 (270,087ft2)
Above ground: 22 floors
Below ground: 4 floors
August 1995

Location :Site area :Floor area of building :Structure :Completion :Nagoya, Aichi Prefecture
786.79m2 (8,469ft2)
6,445.08m2 (69,374ft2)
Above ground: 9 floors
Below ground: 2 floors
September 1987

Nagoya Hirokoji
Building

Nagoya Misono
Building● III-7● III-8

Nagoya, Aichi Prefecture
4,095.81m2 (44,087ft2)
33,377.73m2 (359,275ft2)
Above ground: 18 floors
Below ground: 2 floors
May 1987

Location :Site area :Floor area of building :Structure :Completion :Nagoya, Aichi Prefecture
805.04m2 (8,665ft2)
5,348.00m2 (57,565ft2)
Above ground: 7 floors
Below ground: 1 floor
September 1991

Kyoto Shijo
Kawaramachi Building

Shin-Fujita Building● III-9● III-10

Kyoto, Kyoto Prefecture
1,471.57m2 (15,840ft2)
9,701.04m2 (104,421ft2)
Above ground: 9 floors
Below ground: 1 floor
November 1982

20 Japan Real Estate Investment Corporation

Location :Site area :Floor area of building :Structure :Completion :Osaka, Osaka Prefecture
6,159.61m2 (66,301ft2)
45,411.31m2 (488,803ft2)
Above ground: 21 floors
Below ground: 2 floors
April 1995

Location :Site area :Floor area of building :Structure :Completion :Sakaisujihonmachi
Building

Midosuji Daiwa
Building● III-11● III-12

Osaka, Osaka Prefecture
2,036.22m2 (21,918ft2)
17,145.59m2 (184,553ft2)
Above ground: 13 floors
Below ground: 2 floors
October 1992

Location :Site area :Floor area of building :Structure :Completion :NHK Hiroshima
Broadcasting Center
Building

Lit City Building● III-13

Location :Site area :Floor area of building :Structure :Completion :Location :Site area :Floor area of building :Structure :Completion :Okayama, Okayama Prefecture
7,596.44m2 (81,767ft2)
52,653.19m2 (566,754ft2)
Above ground: 20 floors
Below ground: 2 floors
June 2005

Osaka, Osaka Prefecture
3,044.65m2 (32,772ft2)
31,213.27m2 (335,977ft2)
Above ground: 15 floors
Below ground: 2 floors
September 1991

● III-14

Location :Site area :Floor area of building :Structure :Completion :Hiroshima, Hiroshima Prefecture
3,296.46m2 (35,483ft2)
35,217.28m2 (379,075ft2)
Above ground: 23 floors
Below ground: 2 floors
August 1994

Tosei Tenjin Building

Tenjin Crystal
Building● III-15● III-16

Fukuoka, Fukuoka Prefecture
1,221.31m2 (13,146ft2)
5,588.57m2 (60,155ft2)
Above ground: 8 floors
March 1992

Location :Site area :Floor area of building :Structure :Completion :Fukuoka, Fukuoka Prefecture
1,835.17m2 (19,754ft2)
10,432.04m2 (112,289ft2)
Above ground: 14 floors
Below ground: 1 floor
August 1993

Hinode Tenjin
Building● III-17

Location :Site area :Floor area of building :Structure :Completion :Fukuoka, Fukuoka Prefecture
1,452.15m2 (15,631ft2)
12,527.07m2 (134,840ft2)
Above ground: 10 floors
Below ground: 2 floors
August 1987

Japan Real Estate Investment Corporation 21

22 Japan Real Estate Investment Corporation

Financial Section
Selected Financial Data
Balance Sheets
Statements of Income and Retained Earnings
Statements of Changes in Unitholders’ Equity
Statements of Cash Flows
Notes to Financial Statements
Report of Independent Auditors

p.23
p.24
p.26
p.26
p.27
p.28
p.37

Selected Financial Data
Thousands of U.S. dollars

Millions of yen(Note 1)For the period from

For the period from

For the period from

October 1, 2007 to

April 1, 2007 to

October 1, 2006 to

October 1, 2008 to

March 31, 2008

September 30, 2007

March 31, 2007

March 31, 2009

¥ 19,805¥ 25,743¥ 17,530¥ 16,960$5,210,900

9,998

11,524

8,791

8,655

109,552

9,955

9,807

14,218

8,739

8,304

101,349

8,426

8,449

12,946

7,586

7,184

85,787For the period from

For the period from

October 1, 2008 to

April 1, 2008 to

March 31, 2009

September 30, 2008

Operating Revenues¥ 20,716

Operating Expenses

10,761

Operating Income
Income before Income Taxes

For the period fromNet Income

8,425

8,448

12,945

7,585

7,183

85,777

Total Assets

565,022542,920

527,537

449,643

443,9735,752,033

Interest-Bearing Debts

220,500

199,500

177,500

144,500

140,000

2,244,732

Net Assets

306,027

306,050

310,547

272,269

271,867

3,115,417

Unitholders’ Capital

297,601

297,601

297,601

264,683

264,683

3,029,639

Number of Units

443,000

443,000

443,000

410,000

410,000

443,000

Net Assets per Unit (Yen/U.S. dollars)

690,806

690,858

701,009664,071

663,091

7,033

8,425

8,448

12,945

7,585

7,183

85,777

Cash Distribution
Dividend Payout Ratio

99.9%

100.0%

100.0%

99.9%

100.0%

99.9%

Dividend per Unit (Yen/U.S. dollars)

19,02019,072

29,22318,50017,521

193.63

Net Operating Income (NOI)

14,575

14,173

12,197

12,073

11,300148,378

Funds from Operations (FFO)

12,213

12,0098,078

10,022

9,441

124,341Return on Assets (ROA) (Note 2)

1.5%(3.1% annualized)

Return on Equity (ROE) (Note 3)

2.8
(5.5% annualized)

EOP Equity Ratio (Note 4)

54.2%

1.6%
(3.1% annualized)

2.7％(5.5% annualized)

56.4%

2.6%
(5.3% annualized)

4.7％(9.3% annualized)

58.9%

1.7%
(3.4% annualized)

2.8%(5.6% annualized)

60.6%

1.6%
(3.3% annualized)

2.7%(5.5% annualized)

61.2%

1.5%
(3.1% annualized)

2.8%(5.5% annualized)

54.2%

EOP Interest-Bearing Debt Ratio
39.0%

36.7%

33.6%

32.1%

31.5%

39.0%

FFO Multiple

on Total Assets (Note 5)

13.7 times

15.5 times

31.9 times

28.3 times

33.8 times

13.7 times

Debt Service Coverage Ratio (Note 6)

8.9 times

9.7 times

14.2 times

10.4 times

10.5 times

8.9 times

Notes 1:

2:
3:

4:
5:
6:

Amounts in U.S. dollars are included solely for the convenience of readers outside Japan. The rate of ¥98.23 = US$1.00, the foreign exchange rate on March 31,
2009, has been used for translation. The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized or
settled into U.S. dollars at that rate or any other rate.
ROA = Income before Income Taxes ÷ Average of Total Assets during the period
ROE = Net Income ÷ Average of Net Assets during the period(Annualized portion of the calculation given in note 2 and note 3 assumes a fiscal period of 182 days for the period ended March 31, 2007, 183 days for the period
ended September 30, 2007, 183 days for the period ended March 31, 2008, 183 days for the period ended September 30, 2008 and 182 days for the period ended
March 31, 2009.)
EOP Equity Ratio = (Net Assets at end of period ÷ Total Assets at end of period) × 100
EOP Interest-Bearing Debt Ratio on Total Assets = (Interest-Bearing Debt at end of period ÷ Total Assets at end of period) × 100
Debt Service Coverage Ratio = Net Income before Interest, Taxes, Depreciation and Amortization ÷ Interest Expenses

Japan Real Estate Investment Corporation

23

Balance Sheets
As of March 31, 2009 and September 30, 2008

Thousands of yen

U.S. dollars (Note 1)

As ofMarch 31, 2009

As of
September 30, 2008

As ofMarch 31, 2009

¥ 18,349,167)¥ 15,069,928)$, 186,797,995)

232,709)

208,071)2,369,023)

7,795)

6,100)

79,356)

111,784)

105,135)

1,137,986)

18,701,455)

15,389,236)

190,384,360)

ASSETS
Current Assets:
Cash and bank deposits
Rental receivables
Refundable income taxes
Other current assets
Total current assets

Property and Equipment, at Cost:Land

369,634,614)

351,928,258)

3,762,950,364)

Buildings and structures

199,798,790)

195,015,937)

2,033,989,524)

Machinery and equipment

2,853,700)

2,798,477)

29,051,209)

Tools, furniture and fixtures

96,895)

95,277)986,410)

Construction in progress

1,461,051)

1,417,571)

14,873,784)

Subtotal

573,845,052)

551,255,522)

5,841,851,291) )Accumulated depreciation(31,180,654)(27,392,551)(317,424,962))

Total property and equipment

542,664,398)

523,862,971)

5,524,426,329)

Investments and Other Assets:
Investment securities

2,797

2,797

28,480)

Deposits

21,902

23,575

222,967)

Long-term prepaid expenses

19,505

18,647

198,571)

2,691,724

2,691,724

27,402,269)

828,095

828,095

8,430,168)

Leasehold rights
Easement
Deferred investment corporation bond issuance costs
Total Assets
The accompanying notes form an integral part of these financial statements.

24

Japan Real Estate Investment Corporation

92,290103,118

939,533)¥565,022,169¥542,920,166$5,752,032,677)

Thousands of yen

U.S. dollars (Note 1)

As ofMarch 31, 2009

As of
September 30, 2008

¥

¥

As of
March 31, 2009

LIABILITIESCurrent Liabilities:
Trade accounts payable

680,632,446,273$ , 6,928,970

Other payables

755,420814,518

7,690,323

Short-term loans

48,000,000

28,000,000

488,649,089

Current portion of long-term loans

12,000,000

7,000,000

122,162,272

733,264

728,2217,464,768

50

44

517

Accrued expenses
Accrued income taxes
Accrued consumption taxes

424,264

107,128

4,319,097

Rent received in advance

2,350,341

2,260,179

23,926,924

Other current liabilities
Total current liabilities

21,763

46,560221,558

64,965,738

39,402,926

661,363,518

Long-Term Liabilities:
Investment corporation bonds

45,000,000

45,000,000

458,108,521

Long-term loans

115,500,000

119,500,000

1,175,811,870

Deposits received from tenants

33,529,044

32,966,841

341,332,018

Total long-term liabilities

194,029,044

197,466,841

1,975,252,409

Total Liabilities

258,994,782

236,869,768

2,636,615,927

297,601,460

297,601,460

3,029,639,214

8,425,927

8,448,938

85,777,536

Total net assets

306,027,387

306,050,398

3,115,416,750

Total Liabilities and Net Assets¥565,022,169¥542,920,166$5,752,032,677

NET ASSETS
Unitholders’ capital
Authorized:

2,000,000 units

Issued:443,000 units as of March 31, 2009 and
443,000 units as of September 30, 2008

Retained earnings

The accompanying notes form an integral part of these financial statements.

Japan Real Estate Investment Corporation25

Statements of Income and Retained Earnings
For the six months ended March 31, 2009 and September 30, 2008
Thousands of yen

U.S. dollars (Note 1)

For the period
from October 1, 2008

For the period
from April 1, 2008

For the period
from October 1, 2008

to March 31, 2009

to September 30, 2008

to March 31, 2009

Operating Revenues and Expenses
Operating Revenues:
Rental revenues
Non-rental revenues¥20,609,470)
107,266)¥19,716,477)
89,147)$209,808,314)
1,091,994)

Total operating revenues

20,716,737)

19,805,625)

210,900,308)

Operating Expenses:
Property-related expenses
Asset management fees
Administrative service fees
Other operating expenses

9,929,685)
537,912)
179,765)
113,888)

9,192,859)
531,583)
173,810)100,009)

101,086,081)
5,476,048)
1,830,047)
1,159,411)

Total operating expenses

10,761,252)

9,998,264)

109,551,587)

Operating income

9,955,484)

9,807,360)

101,348,721)

Non-Operating Revenues and Expenses
Non-Operating Revenues:
Interest income
Interest on refund
Other non-operating revenues
Non-Operating Expenses:
Interest expense
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
Other non-operating expenses

39,861)―
72)

38,252)
9,653)
2,777)

405,795)―
740)

1,132,259)
405,205)
10,828)20,228)970,200)
408,045)
10,887)
19,126)

11,526,614)
4,125,070)
110,232)
205,932)

Income before Income Taxes

8,426,897)

8,449,784

85,787,408)

1,014)
(2)

956)
(2)

10,332)(25)
85,777,102)

Income Taxes:
Current
Deferred

8,425,884)

8,448,829)

Retained Earnings Brought Forward

Net Income

42)

108)

434)

Retained Earnings at End of Period¥ 8,425,927)¥ 8,448,938)$ 85,777,536)

Units

Unitholders’ capital

Retained earnings

Total

443,000¥297,601,460¥12,945,897)¥310,547,357)――(12,945,789)(12,945,789)

8,448,829)

8,448,829)

443,000¥297,601,460¥ 8,448,938)¥306,050,398)――(8,448,896)(8,448,896)

8,425,884)

8,425,884)

443,000¥297,601,460¥ 8,425,927)¥306,027,387)

Units

Unitholders’ capital

Retained earnings

Total

443,000$3,029,639,214$86,011,795)$3,115,651,009)――(86,011,361)(86,011,361)

85,777,102)

85,777,102)$3,029,639,214$85,777,536)$3,115,416,750)

Statements of Changes in Unitholders’ Equity
For the six months ended March 31, 2009 and September 30, 2008
Thousands of yen

Balance as of March 31, 2008
Cash dividends paid
Net income
Balance as of September 30, 2008
Cash dividends paid
Net income
Balance as of March 31, 2009

―

―

―

―

U.S. dollars (Note 1)

Balance as of September 30, 2008
Cash dividends paid
Net income
Balance as of March 31, 2009
The accompanying notes form an integral part of these financial statements.

26

Japan Real Estate Investment Corporation―

443,000―

Statements of Cash Flows
For the six months ended March 31, 2009 and September 30, 2008

Thousands of yen

U.S. dollars (Note 1)

For the period
from October 1, 2008

For the period
from April 1, 2008

For the period
from October 1, 2008

to March 31, 2009

to September 30, 2008

to March 31, 2009

Income before income taxes¥ 8,426,897)¥ 8,449,784)$ 85,787,408)

Depreciation and amortization

3,788,102)

3,560,543)

38,563,602)

Amortization of investment corporation bond issuance costs

10,828)

10,887)110,232)

Interest income(39,861)(38,252)(405,795)Interest expense

1,537,464)

1,378,245)

15,651,684)

Rental receivables(24,637)(82,259)(250,816)

Refundable income taxes(1,694)

1,191)(17,248)

Cash Flows from Operating Activities―)

1,458,648)―)

Prepaid expenses(9,680)(8,080)(98,554)

Trade accounts payable

3,090,111 )Refundable consumption taxes

303,541)(1,439,810)

Other payables

4,191)(2,109,451)

42,675)

Accrued expenses

316,999)

107,197)

3,227,112)

Rent received in advance

90,161)

20,597)

917,864)

Long-term prepaid expenses(858)(13,845)(8,739)(26,202)46,656)(266,751)

Sub-total

14,375,251)

11,342,052

Interest received

44,302)33,938)

Other

Dividends received
Interest paid
Income taxes paid)

146,342,786)
451,005)―)

7,935,763)―)(1,532,284)(1,283,786)(15,598,950)(1,008)(950)(10,268)

12,886,260)

18,027,016)

131,184,573)

Payments of time deposits(6,643,000)(7,740,000)(67,626,998)

Proceeds from time deposits

13,643,000)

2,092,000)

138,888,323)

Purchases of property and equipment(22,722,001)(27,876,590)(231,314,279)

―)
(426)
� �
2,100)(1,637,561)(1,214)―)(4,344)
21,378)(16,670,689)

Net cash provided by operating activities

Cash Flows from Investing Activities

Purchases of intangible assets
Proceeds from investment securities redemption
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Repayment of lease deposits received
Proceeds from lease deposits received
Net cash used in investing activities―)

1,270,000)―)―)(1,089,333)―)

2,199,764)

2,572,980)

22,394,017)(15,158,125)(30,772,156)(154,312,591)

Cash Flows from Financing Activities
Proceeds from short-term loans

27,500,000)

20,500,000)

279,955,207)

Repayment of short-term loans(7,500,000)(15,500,000)(76,351,420)

Proceeds from long-term loans

8,000,000)

27,000,000)

81,441,515)(10,000,000)

� � � (71,261,325)

Payments of investment corporation bond redemption
Repayments of long-term loans
Payment of new unit issuance costs
Dividends to unitholders
Net cash provided by financing activities―)―)(7,000,000)―)―)(11,693)―)(8,448,896)(12,945,789)(86,011,361)

12,551,104)

9,042,517)

127,772,615)

Net Increase (Decrease) in Cash and Cash Equivalents

10,279,238)(3,702,622)

104,644,597)

Cash and Cash Equivalents at Beginning of Period

8,069,928)

11,772,551)

82,153,398)¥18,349,167)¥ 8,069,928)$186,797,995)

Cash and Cash Equivalents at End of Period
The accompanying notes form an integral part of these financial statements.

Japan Real Estate Investment Corporation

27

Notes to Financial Statements
March 31, 2009 and September 30, 2008

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Japan Real Estate Investment Corporation (the “Company”) is a real estate investment corporation formed to own and invest primarily in a portfolio of
office properties. The Company is externally managed by a licensed asset management company, Japan Real Estate Asset Management Co., Ltd. (“J-Rea”).
J-Rea is currently owned 63% by Mitsubishi Estate Co., Ltd. (“MEC”), 27% by The Dai-ichi Mutual Life Insurance Company (“DL”) and 10% by Mitsui& Co., Ltd.
On May 11, 2001, the Company was incorporated with ¥200 million of original capital contribution by MEC, Tokio Marine & Nichido Fire Insurance Co.,
Ltd. (“TMN”) and DL under the Law Concerning Investment Trusts and Investment Corporations of Japan, or the Investment Trust Law.
On September 10, 2001, the Company commenced operations when the Company was listed on the Tokyo Stock Exchange as one of the first real estate
investment corporations in Japan (so-called “J-REITs”). The Company issued 160,000 units at a price of ¥506,625 ($5,057), generating gross proceeds of¥81,060 million ($809,063 thousand).
On March 12, 2008, the Company completed a sixth public offering of 33,000 units at a price of ¥997,500 ($9,956) generating gross proceeds of ¥32,917
million ($328,551 thousand). As of March 31, 2009, the Company had total unitholders’ capital of ¥297,601 million ($3,029,639 thousand) with 443,000
outstanding units.
On February 5, 2009, J-Rea approved the transfer of all 77,142 shares (which represents 27.0% of outstanding shares) of J-Rea stocks held by TMN to
MEC.
On March 27, 2009, the transfer of the stocks was completed and MEC’s ownership in J-Rea increased from 36.0% to 63.0%, which made J-Rea aconsolidated subsidiary of MEC. Consequently, MEC became as a “related party” of J-Rea, for the purpose of the Law Concerning Investment Trusts andInvestment Corporations of Japan. To deal with possible conflict of interest, J-Rea established a compliance committee on March 27, 2009 to provide
enhanced compliance measures including the prevention of such conflicts of benefits.
At March 31, 2009, the Company owned a portfolio of 55 office properties concerning an aggregate of approximately 516,411 square meters of leasable
space.

Basis of presenting financial statements
The Company maintains its accounting records and prepares its financial statements in accordance with accounting principles generally accepted in Japan(“Japanese GAAP”), including provisions set forth in the Investment Trust Law, the Corporation Law of Japan, the Financial Instruments and Exchange
Law of Japan and the related regulations, which are different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Company, which were prepared in accordance withJapanese GAAP and were presented in the Securities Report of the Company filed with the Kanto Local Finance Bureau. In preparing the accompanying
financial statements, certain reclassifications and modifications have been made to the financial statements issued domestically in order to present them ina format that is more familiar to readers outside Japan. In addition, the notes to financial statements include information that might not be required underJapanese GAAP but is presented herein as additional information.
Amounts in U.S. dollars are included solely for the convenience of readers outside Japan. The rate of ¥98.23=US$1.00, the foreign exchange rate on March
31, 2009, has been used for translation. The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted,
realized or settled into U.S. dollars at that rate or any other rate.
As permitted under the Japanese Financial Instruments and Exchange Law, amounts of less than one million yen have been omitted. As a result, the totals
shown in the accompanying financial statements do not necessarily agree with the sum of the individual amounts.

28

Japan Real Estate Investment Corporation

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESInvestment securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method.
Property and equipment
Property and equipment is stated at cost, less accumulated depreciation. The costs of land, buildings and building improvements include the purchase priceof property, legal fees and acquisition costs. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets ranging as statedbelow:
Buildings………………………………………………………………………………………

2-61 years

Structures………………………………………………………………………………………

5-50 years

Machinery and equipment………………………………………………………………….….

3-18 years

Tools, furniture and fixtures…………………………………………..………………..……...

3-15 years

Expenditures for repairing expenses are charged to income as incurred. Significant renewals and betterments are capitalized.
The Company reviews fixed assets for impairment whenever events or changes in circumstances indicate that the carrying amount of its fixed assets may
not be recoverable. Companies are required to recognize an impairment loss in their statement of income if certain indicators of asset impairment exist andthe book value of an asset exceeds the undiscounted sum of future cash flows of the asset. The standard states that impairment losses should be measured
as the excess of the book value over the higher of (1) the fair market value of the asset, net of disposition costs and (2) the present value of future cash
flows arising ongoing utilization of the asset and from disposal after asset use. The standard covers land, factories, buildings and other forms of property,
plant and equipment as well as intangible assets. Fixed assets are grouped at the lowest level for which there is identifiable cash flows that are independentof cash flows of other groups of assets.

Deferred charges
Deferred charges include investment corporation bond issuance costs and new unit issuance costs.
Investment corporation bond issuance costs are amortized using the straight-line method over the amortization periods.

Revenue recognition
Revenues from leasing of office space are recognized as rent accrued over the lease period.

Taxes on property and equipment
Property and equipment is subject to property taxes and city planning taxes on a calendar year basis. These taxes are generally charged to income during
the period. The sellers of the properties were liable for property taxes for the calendar year including the period from the date of purchase by the Company
through the end of the year since the taxes are imposed on the owner registered in the record as of January 1 based on the assessment made by the local
government. The Company paid the amount equivalent to the property taxes to the sellers applicable to the period since acquisition and included theamount equivalent to the taxes in the purchase price of each property and capitalized as cost of the property.

Consumption taxes
Consumption taxes withheld and consumption taxes paid are not included in the statements of income. The consumption taxes paid are generally offset
against the balance of consumption taxes withheld. As such, the excess of payments over amounts withheld are included in the current assets and the excess
of amounts withheld over payments are included in the current liabilities.

Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks and short-term investments which are highly liquid, readily convertible to cash andwith insignificant risk of price fluctuation, with original maturity of three months or less.

Japan Real Estate Investment Corporation29

3. INVESTMENT SECURITIESInvestment securities recorded at cost at March 31, 2009 and September 30, 2008 are summarized as follows:

U.S. dollars

Thousands of yen
As ofSeptember 30, 2008

As ofMarch 31, 2009

As ofMarch 31, 2009

Other securities
Non-listed stock¥2,797¥2,797$28,480

4. PROPERTY AND EQUIPMENT
Property and equipment at March 31, 2009 and September 30, 2008 consisted of the following:Thousands of yen

U.S. dollars
As of September 30, 2008

As of March 31, 2009

As of March 31, 2009

Acquisition Costs

Book Value

Acquisition Costs

Book Value

Acquisition Costs

Book ValueLand¥309,300,955)¥309,300,955¥309,238,853)¥309,238,853$3,148,742,295)$3,148,742,295

Buildings and structures

164,104,236)

Accumulated depreciation
Machinery and equipment
Accumulated depreciation
Tools, furniture and fixtures
Accumulated depreciation

163,164,783)(24,458,126)

139,646,110(21,363,481)

1,670,612,201)
141,801,302

2,215,416)

2,215,416)(782,102)

1,433,313(697,963)

43,020(37,738)

1,421,623,845

22,553,361)
1,517,452(7,961,954)

48,814(459,640)

86,553)88,170)(45,150)(248,988,356)

14,591,407

897,593)437,953

Construction in progress

1,461,051)

1,461,051

1,417,571)

1,417,571

14,873,784)

14,873,784

Land in trust

60,333,658)

60,333,658

42,689,405)

42,689,405

614,208,069)

614,208,069

Buildings and structures in trust

35,694,554)

Accumulated depreciation(5,498,595)

Machinery and equipment in trust

638,283)

Accumulated depreciation(392,992)

Tools, furniture and fixtures in trust
Accumulated depreciation
Total

31,851,154)
30,195,959(4,921,122)

363,377,323)
26,930,031

583,060)
245,290(368,816)

307,400,581

6,497,847)
214,2438,724)

8,724)(55,976,741)(4,000,742)

2,497,106

88,817)(3,686)

5,038(3,428)5,296(37,528)

51,289¥542,664,398)¥542,664,398¥523,862,971)¥523,862,971$5,524,426,329)$5,524,426,329

The compressed amount of tangible assets with government grants under the Corporation Tax Law of Japan was ¥50 million ($510 thousand) at March31,
2009 and ¥50 million ($510 thousand) at September 30, 2008.

30

Japan Real Estate Investment Corporation

Japan Real Estate Investment Corporation

31

7. LONG-TERM LOANS INCLUDING CURRENT PORTION OF LONG-TERM LOANS
Long-term loans at March 31, 2009 and September 30, 2008 consisted of the following:
U.S. dollars

Thousands of yen
As ofMarch 31, 2009

1.0575% unsecured loan from a bank, due on March 24, 2009

¥

As of
September 30, 2008―

¥ 2,000,000―

5,000,000

As ofMarch 31, 2009$―

1.015% unsecured loan from an insurance company,
due on March 30, 2009――1.2875% unsecured loan from a bank, due on December 15, 2009

2,000,000

1.10625% unsecured loan from a bank, due on March 24, 2010

2,000,000

1.10625% unsecured loan from a bank, due on March 24, 2010

2,000,000

1.10625% unsecured loan from a bank, due on March 24, 2010

3,000,000

1.10625% unsecured loan from a bank, due on March 24, 2010

2,000,000

1.10625% unsecured loan from a bank, due on March 24, 2010

1,000,000―

10,180,189

2,000,000

2,000,000

20,360,379

1,500,000

1,500,000

15,270,284

1,000,000

1,000,000

10,180,189

5,000,000

5,000,000

50,900,947

2,000,000

2,000,000

20,360,379

―
―
―
―

20,360,379
20,360,379
20,360,379
30,540,568
20,360,379

1.47125% unsecured loan from an insurance company,
due on March 30, 2011
1.86875% unsecured loan from an insurance company,
due on May 29, 2015
1.595% unsecured loan from an insurance company,
due on April 25, 2016
1.50125% unsecured loan from an insurance company,
due on August 31, 2011
1.55% unsecured loan from an insurance company,
due on October 29, 2012
1.33125% unsecured loan from another financial institution,
due on November 1, 2011

5,000,000

5,000,000

50,900,947

1.63% unsecured loan from a trust bank, due on April 4, 2011

10,000,000

10,000,000

101,801,894

1.73% unsecured loan from a trust bank, due on June 1, 2011

22,000,000

22,000,000

223,964,166

24,000,000

24,000,000

244,324,544―

2,000,000―

5,000,000

5,000,000

50,900,947

due on March 30, 2017

5,000,000―

50,900,947

1.6225% unsecured loan from a bank, due on June 15, 2010

3,000,000

3,000,000

30,540,568

1.10625% unsecured loan from a bank, due on March 24, 2010―

2,000,000―

1.4925% unsecured loan from a bank, due on August 31, 2012

1,000,000

1,000,000

10,180,189

1.10625% unsecured loan from a bank, due on March 24, 2010―

2,000,000―

1.65925% unsecured loan from banks, trust banks, and an insurancecompany, due on June 23, 20111.2875% unsecured loan from a bank, due on December 15, 2009
1.86875% unsecured loan from an insurance company,
due on May 29, 2015
1.54375% unsecured loan from an insurance company,

1.10625% unsecured loan from a bank, due on March 24, 2010
1.10625% unsecured loan from a bank, due on March 24, 2010

32

―

―

3,000,000―

2,000,000―

30,540,568

1.5725% unsecured loan from a bank, due on June 14, 2010

3,000,000

3,000,000

1.10625% unsecured loan from a bank, due on March 24, 2010―

1,000,000

1.10625% unsecured loan from a bank, due on December20, 2010

1,000,000―

10,180,189

1.42375% unsecured loan from a bank, due on April 24, 2013

5,000,000

5,000,000

50,900,947

1.42375% unsecured loan from a bank, due on April 24, 2013

5,000,000

5,000,000

50,900,947

1.4875% unsecured loan from a bank, due on September 2, 2013

3,000,000

3,000,000

30,540,568

1.42375% unsecured loan from a bank, due on April 24, 2013

3,000,000

3,000,000

30,540,568

1.4875% unsecured loan from a trust bank, due on September 2, 2013

5,000,000

5,000,000

50,900,947

Japan Real Estate Investment Corporation―

U.S. dollars

Thousands of yen
As ofMarch 31, 2009

As of
September 30, 2008

1.65% unsecured loan from a bank, due on September 1, 2015

2,000,000

2,000,000

20,360,379

1.31% unsecured loan from a bank, due on March 24, 2014

2,000,000―

20,360,379

Subtotal
Less: current portion of long-term loans
Total

As of
March 31, 2009

¥127,500,000¥126,500,000

12,000,000

7,000,000

122,162,272¥115,500,000¥119,500,000$1,175,811,870$1,297,974,142

8. NET ASSETSThe Company is required to maintain net assets of at least ¥50 million ($509thousand), as required pursuant to the Investment Trust Law.

9. INCOME TAXESAt March 31, 2009 and September 30, 2008, the Company’s deferred tax assets consisted mainly of the enterprise tax, which is not deductible for tax
purposes. The reconciliation of tax rate difference between the adjusted statutory tax rate and the effective tax rate for the six months ended March 31,
2009 and September 30, 2008 were as follows:
For the period from October 1, 2008

For the period from April 1, 2008

to March 31, 2009

to September 30, 2008

Statutory tax rate…………………………………………………..……………39.33%………………………..39.39%
Deductible dividend distribution……………...……………………………….(39.33%) …………………….. (39.39%)
Others……….…………………………………… ……..….……………………0.01%…………………………0.01%
Effective tax rate………………………………… ……………………………...0.01%…………………………0.01%

The Company is subject to Japanese corporate income taxes on all of its taxable income. However, under the Special Taxation Measures Law of Japan, or
the STML, an investment corporation is allowed to deduct dividends of accounting profits, or dividend distributions, paid to investors from its taxable
income if certain tax requirements are satisfied. Such tax requirements include dividend distributions in excess of 90% of its taxable income for the fiscal
period as stipulated by Article 67-15 of the STML. Based on the distribution policy provided by Article 32-2 of the Articles of Incorporation, the Company
made a dividend distribution of integral multiple of number of units up to 100% of retained earnings in the amount of ¥8,425 million ($85,777 thousand)subsequent to March 31, 2009 and treated it as tax deductible dividend. The Company will not distribute the dividends in excess of retained earnings under
Article 32-3 of the Articles of Incorporation.

10. PER UNIT INFORMATION
The following table summarizes information about net assets per unit and net income per unit at March 31, 2009 and September 30, 2008, and for theperiods then ended:
U.S. dollars

Yen
For the period
from April 1, 2008

For the period
from October 1, 2008
to March 31, 2009

For the period
from October 1, 2008
to March 31, 2009

to September 30, 2008

Net assets at period end per unit

¥690,806¥690,858$7,033

Net income per unit

¥ 19,020¥ 19,071$ ,194

Japan Real Estate Investment Corporation

33

Net income per unit is computed by dividing net income by the weighted average number of units outstanding during each period. Diluted net income perunit has not been presented since no warrants or convertible bonds were outstanding during the period.

11. RELATED PARTY TRANSACTIONS
For the six months ended March 31, 2009 and September 30, 2008
For the period from April 1, 2008 to September 30, 2008
(1)

Parent Company and Major Corporation Unitholders“Not applicable”(2)

Subsidiaries

Party type

Subsidiary

Party name

Harumi Front TMK

Address

Chuo-ku, Tokyo

CapitalBusiness(Millions of yen),¥2,545(U.S. dollars)$25,908,582

Management of specified asset％ of voting stock held (*2)
Relationships

Business relationshipDirect 49.90
1. Portfolio investment of the Company
2. Acquisition of real estate and other assets in the Harumi Center
Building through the preferred capital contribution certificates

Details of transaction and transaction amount (*1)

Redemption of preferred capital contribution certificates (*3):(Thousands of yen)

¥1,270,000(U.S. dollars) $12,928,840
Redemption of dividend receivable:(Thousands of yen)

¥6,348,610(U.S. dollars) $64,630,057(*1) Neither transaction amount nor balance includes consumption taxes, etc.
(*2) “% of voting stock held” indicates ownership percentage of preferred capital contribution certificates issued by the TMK.
(*3) Transaction terms and policy for determining the terms;
The preferred capital contribution certificates were determined to be redeemed at the special meeting held on March 31, 2008, followed by
the redemption of ¥1,267,050 thousand ($12,898,809), as well as the remaining ¥2,950 thousand ($30,032), in response to the decision
made at the general meeting of the members held on September 17, 2008, to liquidate the TMK.
(3)

Sister Companies“Not applicable”(4)

Directors and Major Individual Unitholders“Not applicable”

For the period from October 1, 2008 to March 31, 2009(1)

Parent Company and Major Corporation Unitholders“Not applicable”(2)

Subsidiaries“Not applicable”(3)

Sister Companies“Not applicable”(4)

Directors and Major Individual Unitholders“Not applicable”

34

Japan Real Estate Investment Corporation

12. BREAKDOWN OF PROPERTY-RELATED REVENUES AND EXPENSES
For the six months ended March 31, 2009 and September 30, 2008
Thousands of yen

Property-Related Revenues

U.S. dollars
For the period

For the period
from October 1, 2008
to March 31, 2009

from April 1, 2008
to September 30, 2008

For the period
from October 1, 2008
to March 31, 2009

¥20,716,737¥19,805,625$ 210,900,308

20,609,470

19,716,477

209,808,314

Rental revenues

15,671,686

15,068,093

159,540,734

Common service charges

3,058,377

2,908,862

31,134,866

Rental Revenues

Parking revenues
Other rental revenues
Non-Rental Revenues

568,982

537,350

5,792,353

1,310,423

1,202,170

13,340,361

107,266

89,147

1,091,994

Cancellation charges

56,255

7,008

572,696

Other miscellaneous revenues

51,01082,139519,299

9,929,685

9,192,859

101,086,081

Property management expenses

2,261,861

2,052,418

23,026,182

Utilities expenses

1,570,674

1,452,724

15,989,765

Property and other taxes

1,509,694

1,509,505

15,368,979

44,09041,998448,852

Property-Related Expenses

Casualty insurance
Repairing expenses
Depreciation
Other rental expenses
Property-Related Profits

676,964

511,214

6,891,625

3,788,102

3,560,543

38,563,602

78,29664,454

797,076¥10,787,051¥ 10,612,765$109,814,227

13. SUPPLEMENTAL CASH FLOW INFORMATION
The following table represents a reconciliation of cash and cash equivalents at March 31, 2009 and September 30, 2008:
Thousands of yen

Cash and deposits with banks
Cash and deposits with banks held in trust
Time deposits with maturities of more than three months
Cash and cash equivalents

U.S. dollars

As ofMarch 31, 2009

As of
September 30, 2008

As ofMarch 31, 2009¥15,234,428¥ 12,826,745$155,089,365

3,114,738

2,243,182

31,708,630―(7,000,000)¥18,349,167¥ 8,069,928―$186,797,995

Japan Real Estate Investment Corporation

35

14. LEASESThe Company owns office buildings under leases and earns rent income. As of March 31, 2009 and September 30, 2008, the future lease revenues under
the non-cancelable operating leases are as follows:
Thousands of yen

Due within one year

U.S. dollars

As ofMarch 31, 2009

As of
September 30, 2008

As ofMarch 31, 2009¥12,205,731¥10,884,356$124,256,658

Due after one year

31,172,069

32,170,897

317,337,569

Total¥43,377,800¥43,055,254$441,594,227

15. SUBSEQUENT EVENTSTransfer of unused floor area
The Company decided the following transfer of the development rights for the unused floor area of Mitsubishi UFJ Trust and Banking Building Site,at the Investment Management Council held on May 18, 2009.
Outline of the transfer
1.

Object of transaction:

Development rights for the unused floor area of Mitsubishi UFJ Trust and Banking Building Site

2.

Transfer price:¥ 729,984 thousand

3.

Contract date:

May 18, 2009

4.

Transfer date:

September 17, 2009 (scheduled)

5.

Transferees:

The Sumitomo Trust & Banking Co., Ltd and Mitsubishi Estate Co., Ltd.

6.

Impact of transfer on gain or loss:

The gain on the transfer in the amount of ¥720 million will be recorded,in the 16th Period (period from April 1, 2009 to September 30, 2009).

16. ADDITIONAL INFORMATION
Transfer of Asset
The Company decided the following transfer of a part of Jingumae Media Square Building Site,at the Investment Management Council held on March 31, 2009.
Outline of the transfer
1.

Asset to be transferred:

Real Property (a part of land)

2.

Transfer price:¥ 1,507,411 thousand *3.

Contract date:

April 2, 2009

4.

Transfer date:

October 30, 2009 (scheduled)

5.

Transferee:Tokyo Metropolitan Government

6.

Impact of transfer on gain or loss:

The gain on the transfer in the amount of ¥880 million will be recorded,in the 17th Period (period from October 1, 2009 to March 31, 2010)

Note: In addition to the transfer price, the Company will receive 21,795 thousand yen as compensation for property transfer.

36

Japan Real Estate Investment Corporation

Japan Real Estate Investment Corporation 37

Introduction of the Company's Website

Visit the Company's English Website!
http://www.j-re.co.jp/english/

Main Functions

As any information posted on the website isclassified into these three categories, you caneasily obtain any desired information byclicking the appropriate icon.

You can download all the disclosure data of
the Company as an Excel file.

38 Japan Real Estate Investment Corporation

A summary of the latest data isavailable on this first page.

Corporate Data
As of March 31, 2009

Executives

Transfer Agent

Executive Director:

Taketo Yamazaki

The Sumitomo Trust & Banking Co., Ltd.

Supervisory Directors:

Kenji Kusakabe

4-5-33, Kitahama, Chuo-ku, Osaka 540-8639, Japan

Tomohiro Okanoya

Auditors
Paid-in Capital

Ernst & Young ShinNihon LLC¥297,601,460,000

Hibiya Kokusai Bldg.
2-2-3, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan

Number of Units Outstanding

Incorporation

443,000

May 11, 2001

Number of Unitholders

Executive Office

12,779Japan Real Estate Investment Corporation
3-3-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan

Stock Listing
Tokyo Stock Exchange

For further information, please contact:
Japan Real Estate Asset Management Co., Ltd.

Securities CodePlanning Department8952

Tel: 81-3-3211-7921
Fax: 81-3-3212-8886

Type of Investment Corporation

E-mail: j-rea-inquiry@j-rea.co.jp

Closed-end corporate type fundThis semiannual report includes translations of documents originally filed under the Financial Instruments and Exchange Law of Japan. This report was prepared in English solely for the convenience of readers outside Japan and should not be considered as a disclosure statement. The original Japanese documents
shall take precedence in the event of any discrepancies arising from the translations or interpretations contained in this report.
Estimates for the Company’s future operating results contained in this semiannual report are forward-looking statements and are based on information currently available to the Company and its asset management company and are subject to risks and uncertainties. Consequently, these projections should not be
relied upon as the sole basis for evaluating the Company. Actual results may differ substantially from the projections depending on a number of factors.

Japan Real Estate Investment Corporation 39

http://www.j-re.co.jp/english/

Issued on August 21, 2009