NEWS RELEASE

Japan Real Estate Investment Corporation

October 12, 2012
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Noritada Terasawa, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Hiroshi Katayama, CEO & President
Contact: Ryuta Yoshida, General Manager, Planning Department
Phone: +81-3-3211-7921

Announcement of Issuance of New Units and Secondary Offering of Units
Announcement is hereby made that Japan Real Estate Investment Corporation (the “Company”) will
make issuance of new units and secondary offering of units as resolved by the Board of Directors meeting
held on October 12, 2012.

1. Public offerings of new units(1) Number of units to be : 41,000 units
newly issued: To be determined(2) Issue price(Issue price shall be determined at the Board of Directors meeting to beheld on a date from October 22, 2012 (Mon) to October 25, 2012 (Thu)[hereinafter referred to as “price determination date”]. Issue price means
the value per unit the Company receives from underwriters.): To be determined(3) Aggregate amountof issue price(4) Offer price: To be determined(Subscription price)(5) Subscription method : The new units shall be publicly offered and the Company will have thefollowing companies underwrite all the units on a firm commitment basis:
SMBC Nikko Securities Inc., Mizuho Securities Co., Ltd., Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd., Nomura Securities Co., Ltd. andDaiwa Securities Co. Ltd. (hereinafter, collectively referred to as“Underwriters”).
The units are being co-managed by SMBC Nikko Securities Inc. (acting
as lead manager and sole book runner), Mizuho Securities Co., Ltd. and
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
In addition, the publicly subscribed offer price shall be tentatively set
at the product of the closing price of the investment unit of the Company
on the Tokyo Stock Exchange on the price determination date (or nearest

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

date if the closing price is not available on such given date), multiplied bya conversion factor of 0.90 – 1.00 (fractions omitted), and then finallydetermined taking into account the demand forecast.
: Underwriters shall make payment of the aggregate amount of the issue(6) Underwriting
price to the Company on the payment date. The price difference between
agreement
the aggregate amount of the offer price (subscription price) and theaggregate amount of the issue price shall be the proceeds of eachunderwriter, and the Company will not pay an underwriting fee tounderwriters.
(7) Demand forecast: October 18, 2012 (Thu) through October 25, 2012 (Thu)(bookbuilding) period(maximal length)(8) Minimum: 1 unit (subscriptions above one unit should be multiples of one unit).
subscription unit
: October 23, 2012 (Tue) through October 24, 2012 (Wed)(9) Subscription period
The above subscription period may be moved down, taking into accountthe demand forecast. In that case, the latest subscription period shall be
October 26, 2012 (Fri) through October 29, 2012 (Mon).
(10) Payment date
: October 29, 2012 (Mon)The above payment date may be moved down, taking into account thedemand forecast. In that case, the latest payment date shall be November
1, 2012 (Thu).
(11) Delivery date
: The next business day after the payment date(12) Offer price (subscription price), issue price, and other pertinent matters required for issuance of newunits shall be determined at the Board of Directors meeting to be held hereafter.
(13) Each clause mentioned above is subject to effectiveness of filing made with the relevant authorities
pursuant to the Financial Instruments and Exchange Law.
2. Secondary Offering (Over-allotment) (Refer to <Reference>1.below)(1) Offerer: SMBC Nikko Securities Inc.
4,100 units(2) Number of units to beofferedThe above number represents the maximum number of investment units
to be offered. The number may decrease, or the secondary offering by
over-allotment itself may be cancelled, depending on the degree of
demand and other conditions. The number of investment units to beoffered shall be determined at the Board of Directors meeting, to be heldon the price determination date, in consideration of the degree of demandand other conditions.
(3) Offer price: To be determined(To be decided on the price determination date. The offer price is to be thesame as the public offering issue price (offer price).)(4) Gross Proceeds: To be determined: SMBC Nikko Securities Inc., the lead manager of the public offering, will(5) Offering method
make an offering of the maximum of 4,100 units of the Company that it
borrows from Mitsubishi Estate Co., Ltd., which is an investor of theCompany, in consideration of the degree of demand and other conditionsin the public offering.

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

(6) Subscription period: Same as the subscription period in the public offering.
(7) Delivery date
: Same as the delivery date in the public offering.
(8) Subscription unit
: 1 unit (subscriptions above one unit should be multiples of one unit).
(9) Offer price and other pertinent matters required for secondary offering of units shall be determined at
the Board of Directors meeting to be held hereafter.
(10) Each clause mentioned above is subject to effectiveness of filing made with the relevant authorities
pursuant to the Financial Instruments and Exchange Law.
3. Issuance of new investment units by third-party allocation (Refer to <Reference>1.below)(1) Number of units to be : 4,100 units
newly issued(2) Allottee and number : SMBC Nikko Securities Inc. 4,100 units
of units to be issued(3) Issue price
To be determined(To be decided on the price determination date. The issue price is to be
the same as the public offering issue price.)(4) Aggregate amount: To be determinedof issue price(5) Subscription period: Any day of November 27, 2012 (Tue) or November 30, 2012 (Fri), which(subscription date)shall be the date two (2) business days after the thirtieth (30th) day (orimmediately preceding business day if that date is not business day) fromthe day immediately following the expiration date of the subscription
period for the public offering and the secondary offering throughover-allotment.
(6) Payment date
: Any day of November 28, 2012 (Wed) or December 3, 2012 (Mon),
which shall be the date three (3) business days after the thirtieth (30th)day (or immediately preceding business day if that date is not businessday) from the day immediately following the expiration date of thesubscription period for the public offering and the secondary offering
through over-allotment.
(7) Minimum: 1 unit (subscriptions above one unit should be multiples of one unit).
subscription unit
(8) Issue price and other pertinent matters required for issuance of new units by third-party allotment
shall be determined at the Board of Directors meeting to be held hereafter.
(9) Units not subscribed within the above mentioned subscription period (subscription date) shall not be
issued.
(10) If the public offer of new units is suspended, issuance of new units by a third-party allotment will
also be suspended.
(11) Each clause mentioned above is subject to effectiveness of filing made with the relevant authorities
pursuant to the Financial Instruments and Exchange Law.

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

<Reference>
1. Secondary offering by over-allotment, etc.
A secondary offering by over-allotment may be effected by SMBC Nikko Securities Inc., the leadmanager of the public offering, after considering demand and other conditions, of up to a limit of 4,100
units borrowed (hereafter “borrowed units”) from Mitsubishi Estate Co., Ltd., an investor of the Company(hereafter, “secondary offering by over-allotment”). The number of units to be offered through thesecondary offering by over-allotment is the upper limit and may be reduced, or the offering throughover-allotment itself may be suspended, depending on demand and other conditions.
In order to cause SMBC Nikko Securities Inc. to acquire the units of the Company necessary to repay theborrowed units by SMBC Nikko Securities Inc. in connection with the secondary offering by
over-allotment, the Company resolved, at the Board of Directors meeting held on October 12, 2012
(Friday), that 4,100 new units of the Company be issued and allocated to SMBC Nikko Securities Inc.
(hereafter “third-party allocation”) with a payment date of the date three (3) business days after the thirtieth(30th) day (or immediately preceding business day if that date is not business day)from the day
immediately following the expiration date of the subscription period for the public offering and thesecondary offering through over-allotment).
In addition, SMBC Nikko Securities Inc. may, within the period commencing on the day immediately
following the end of the subscription period for the public offering and the secondary offering by
over-allotment and ending on the date which is three (3) business days prior to the payment date for third
party allotment (hereafter, “syndicate cover transaction period”), purchase up to the maximum number ofunits of the Company sold in the secondary offering by over-allotment on the Tokyo Stock Exchange(hereafter, “syndicate cover transaction”) with the aim of repaying the borrowed units. All the units of theCompany procured by SMBC Nikko Securities Inc. through syndicate cover transaction will be allocated to
repay the borrowed units. In the syndicate cover transaction period, SMBC Nikko Securities Inc. may, at its
discretion, choose not to enter into any syndicate cover transaction, or to terminate such transaction prior toreaching the maximum number of units to be issued in the secondary offering by over-allotment.
Moreover, SMBC Nikko Securities Inc. may effect stabilization transactions in relation to the public
offering and secondary offering by over-allotment, and allocate all or part of the units of the Company
purchased through stabilization transactions, to repayment of the borrowed units.
SMBC Nikko Securities Inc. plans to underwrite the allocation under this issuance of new units by athird-party allocation of an number of units of the Company obtained by deducting the number of units
purchased through stabilizing transaction and syndicate cover transaction that are to be used to return the
borrowed units, from the number of units to be offered in the over-allotment. For this reason, the units to beissued by third-party allocation may not be subscribed in whole or in part, and as a result, the subscription
right will be forfeited and the final number of units with respect to the third-party allocation may be
reduced to the same extent, or the issue itself may be suspended.
Whether the secondary offering by over-allotment is exercised and the number of units to be subscribedwhen the secondary offering by over-allotment is exercised will be determined on the issue pricedetermination date. In case the secondary offering by over-allotment is not exercised, SMBC Nikko
Securities Inc. will not borrow units of the Company from the aforementioned investor of the Company.
Consequently, in case the secondary offering by over-allotment is not exercised, SMBC Nikko Securities
Inc. will not respond or subscribe for the third-party allocation and the subscription right will be forfeited
and then issuance of new units by third-party allocation will not take place at all. Similarly, the syndicate
cover transaction on the Tokyo Stock Exchange will not be exercised.

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

2. Change of number of units issued and outstanding upon new issuance of units
Number of units outstanding before the offering
549,040
Number of newly issued units by public offering
41,000
Number of units outstanding after public offering
590,040
Number of newly issued units by third-party allotment
4,100 (Note)
Number of units outstanding after third-party allotment
594,140 (Note)(Note)These figures are based on the assumption that the new units to be issued by third-party allocation
are all applied by SMBC Nikko Securities Inc.

3. Reason for the issuance of units (use of proceeds), etc.
The issuance of new units was decided on in order to acquire specified assets that are conducive to themedium to long term growth of the Company while ensuring financial stability, after considering thesituations of the real estate sales market, current level of LTV (Interest-bearing debt/Total assets), trendof J-REIT market and level of dividend payout.

4. Total amount to be procured, specific use of proceeds and scheduled outlay period(1) Total amount to be procured (approximate net balance)¥33,498,927,000 (maximum)(Note) 1. The above figures represents the sum of ¥30,453,570,000 in net proceeds from the public
offering and the ¥3,045,357,000 maximum net proceeds from the issuance of new units by
third-party allocation.
(Note) 2. The above-mentioned amounts are estimated amounts calculated on the basis of the closing
price of the Tokyo Stock Exchange as of September 28, 2012.
(2)Specific use of proceeds and scheduled outlay period
Specific use
Amounts (million yen)i. Repayment of other loans
ii. A part of the acquisition funds forHarumi Front and Higashi Nibancho
Square15,500

Scheduled outlay period
November 2012

Remaining funds

January 2013

(Note) For the summary of the acquisition of Harumi Front and Higashi Nibancho Square, please refer to
our News Release “Notice on Acquisition of Domestic Real Estate” released on October 12, 2012.
5. Designation of distributees
Not applicable
6. Outlook
Please refer to “Notice of Revision of Forecast Results for the 23rd Period (March 31, 2013) and
Forecast Results for the 24th Period (September 30, 2013)” announced on October 12, 2012 for theoutlook.

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

<Reference> Forecast results for the 22nd Period (released May 17, 2012) and actual results of the 21st period(previous period)

Forecast results for the
22nd Period(September 30, 2012)
Actual results ofthe 21st Period(March 31, 2012)

Dividend per unit

Operatingrevenues

OperatingincomeOrdinary
incomeNet income(Excluding dividend inexcess of earnings)

million yen
24,050

million yen
10,220

million yen
8,350

million yen
8,430

yen
15,700

million yen
24,059million yen
10,786

million yen
8,863

million yen
8,934

16,190

Dividend inexcess of
earnings per unit
yen
–

yen

yen
–

7. Management conditions and states of equity finance during the three most recent fiscal periods(1) Management conditions during the three most recent fiscal periods
the 19th Period
the 20th Period
the 21st Period
October 1, 2010 throughMarch 31, 2011

April 1, 2011 throughSeptember 30, 2011¥15,642¥15,64299.9%¥678,770

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

October 1, 2011 throughMarch 31, 2012¥16,901¥15,85093.7%¥680,029¥17,899¥16,190
99.4%¥679,130(Note) The net income per unit is calculated based on the average number of units during the period.
(2) Recent unit price conditions
i. Changes in unit prices in the three most recent fiscal periods
the 20th Period
the 21st Period
April 1, 2011 throughSeptember 30, 2011

October 1, 2011 throughMarch 31, 2012

the 22nd Period
April 1, 2012 throughSeptember 30, 2012

Initial price¥788,000¥757,000¥726,000High¥816,000¥779,000¥799,000Low¥724,000¥591,000¥652,000

Closing price¥754,000¥729,000¥786,000

ii. Changes in unit prices during the last six months
April
May
June

July

Initial price¥726,000¥711,000¥684,000¥746,000¥739,000¥769,000High¥748,000¥721,000¥743,000¥747,000¥775,000¥799,000

Low¥700,000¥652,000¥655,000¥706,000¥737,000¥760,000

Closing price¥708,000¥692,000¥731,000¥740,000¥764,000¥786,000

AugustSeptember

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

iii. Unit prices on the business day immediately prior to the resolution date of the issuance
October 11, 2012
Initial price¥777,000High
Low
Closing price¥782,000¥773,000¥778,000(3) Equity finance activities during the three most recent fiscal periods
・Capital Increase by public offering
Issue date
Net proceeds raised through offering
Issue price
Number of units outstanding before offering
Number of newly issued units by offering
Number of units outstanding after offering

Initial use of proceeds

Initial scheduled period of use
Status of use as of the date hereof・Capital Increase by third-party allocation
Issue date
Net proceeds raised through offering
Issue price
Number of units outstanding before offering
Number of newly issued units by offering
Number of units outstanding after offering
Allottee

Initial use of proceeds

Initial scheduled period of use
Status of use as of the date hereofFebruary 28, 2012
¥35,471,520,000¥652,050
489,200 units
54,400 units
543,600 units
The net proceeds raised through this offering
were used for the repayment of ¥37 billion
short-term loans out of ¥54 billion long andshort-term loans in total borrowed for theacquisition of new specified asset.
By the end of March 2012
All amount have been applied to the initialuse by the above scheduled period.

March 27, 2012
¥3,547,152,000¥652,050
543,600 units
5,440 units
549,040 units
SMBC Nikko Securities Inc.
The net proceeds raised through this offering
were used for the repayment of ¥37 billion
short-term loans out of ¥54 billion long andshort-term loans in total borrowed for theacquisition of new specified asset.
By the end of March 2012
All amount have been applied to the initialuse by the above scheduled period.

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

8. Others(1) Restriction period on next additional issuance of units
The Company has an agreement with the lead manager, SMBC Nikko Securities Inc. concerning
the restriction of additional issuance of units for three months from the delivery date of this public
offering without obtaining prior written consent from SMBC Nikko Securities Inc.
However, SMBC Nikko Securities Inc. has the authority to cancel all or part of this restriction or toshorten such restriction period at its discretion.
This notice is the English translation of the announcement in Japanese dated October 12, 2012 on our
website. However, no assurance or warranties are given for the completeness or accuracy of thisEnglish translation.

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