NEWS RELEASE

Japan Real Estate Investment Corporation

March 27, 2014
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 Unitsand 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 March 27, 2014.

1. Public offerings of new units(1) Number of units to be : 57,500 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 April 8, 2014 (Tue) to April 11, 2014 (Fri) [hereinafterreferred to as “price determination date”]. Issue price means the value perunit the Company receives from underwriters.): To be determined(3) Aggregate amountof issue price(4) Offer price: To be determined(Subscription price)(5) Subscription method : The new units shall be publicly offered and the Company will have thefollowing companies underwrite all the units on a firm commitment basis:
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.
Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.

(6) Underwriting
agreement

In addition, the publicly subscribed offer price shall be tentatively set atthe product of the closing price of the investment unit of the Company on
the Tokyo Stock Exchange on the price determination date (or nearest
date if the closing price is not available on such given date), multiplied bya conversion factor of 0.90 – 1.00 (fractions omitted), and then finallydetermined taking into account the demand forecast.
: Underwriters shall make payment of the aggregate amount of the issue
price to the Company on the payment date. The price difference between
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.
: April 4, 2014 (Fri) through April 11, 2014 (Fri) (maximal length)(7) Demand forecast(bookbuilding) period(8) Minimum: 1 unit (subscriptions above one unit should be multiples of one unit).
subscription unit
: April 9, 2014 (Wed) through April 10, 2014 (Thu)(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
April 14, 2014 (Mon) through April 15, 2014 (Tue).
(10) Payment date
: April 15, 2014 (Tue)The above payment date may be moved down, taking into account thedemand forecast. In that case, the latest payment date shall be April 18,
2014 (Fri).
(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.
(2) Number of units to be : 5,750 units
offeredThe above number represents the maximum number of investment
units to be offered. The number may decrease, or the secondaryoffering by over-allotment itself may be cancelled, depending on the
degree of demand and other conditions. The number of investment
units to be offered shall be determined at the Board of Directors
meeting, to be held on the price determination date, in consideration of
the degree of demand and other conditions.
(3) Offer price: To be determined(To be decided on the price determination date. The offer price is to be
the same as the public offering issue price (offer price).)(4) Gross Proceeds: To be determined

Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.

: SMBC Nikko Securities Inc., the lead manager of the public offering,
will make an offering of the maximum of 5,750 units of the Company
that it borrows from Mitsubishi Estate Co., Ltd., which is an investorof the Company, in consideration of the degree of demand and otherconditions in the public offering.
(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 determinedat 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.
(5) Offering method

3. Issuance of new investment units by third-party allocation (Refer to <Reference>1.below)(1) Number of units to be : 5,750 units
newly issued(2) Allottee and number : SMBC Nikko Securities Inc. 5,750 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: May 13, 2014 (Tue)(subscription date)(6) Payment date
: May 14, 2014 (Wed)(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.

<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 5,750
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.
Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.

In order to make SMBC Nikko Securities Inc. 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 March 27, 2014 (Thu) that
5,750 new units of the Company be issued and allocated to SMBC Nikko Securities Inc. (hereafter“third-party allocation”) on May 14, 2014 (Wed) as payment date.
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 May 9, 2014 (Fri) (hereafter, “syndicate cover transaction period”), purchase
up to the maximum number of units 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 the Company procured by SMBC Nikko Securities Inc. through the syndicate covertransaction 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 toterminate such a transaction prior to reaching the maximum number of units to be issued in the secondaryoffering 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.
2. Change of number of units issued and outstanding upon new issuance of units
Number of units outstanding before the offering
1,188,280 (Note 1)
Number of newly issued units by public offering
57,500
Number of units outstanding after public offering
1,245,780
Number of newly issued units by third-party allotment
5,750 (Note 2)
Number of units outstanding after third-party allotment
1,251,530 (Note 2)(Note 1) On January 1, 2014 as the effective date, the company implemented a 2-for-1 split ofinvestment units held by the final unitholders that were recorded in the unitholders registryon December 31, 2013.
(Note 2) 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.

Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.

3. Reason and purpose for the issuance of units
The issuance of new units was decided on for the purpose of procuring fund in order to repay theshort-term loans for the acquisition of specified assets that are conducive to the medium to long term
growth of the Company while ensuring financial stability, after considering the situation pertaining to thereal estate sales market, the current level of LTV (Interest-bearing debt/Total assets), the trend of the
J-REIT market and the 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)¥ 32,146,812,500 (maximum)(Note 1) The above figures represents the sum of ¥ 29,224,375,000 in net proceeds from the public
offering and the ¥ 2,922,437,500 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 March 14, 2014.
(2) Specific use of proceeds and scheduled outlay period
The above net proceeds (¥ 29,224,375,000) raised through the public offering will be applied toward
the repayment of short-term loans until April 2014. The remaining proceeds will be used as cash
reserves toward the acquisition of new specified assets or the repayment of loans. Also, themaximum net proceeds (¥ 2,922,437,500) raised through the issuance of new units by third-party
allocation on the same day of the resolution of the public offering will be applied to cash reserves
until May 2014 to make up for their decrease, as the part of the cash reserves will be applied toward
the repayment of short-term loans.
5. Designation of distributees
Not applicable
6. Outlook
Please refer to “Notice of Revision of Forecast Results for the 26th Period (September 30, 2014) and
Forecast Results for the 27th Period (March 31, 2015)” announced on March 27, 2014 for the outlook.
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
22nd Period
23rd Period
24th Period
April 1, 2012 throughSeptember 30, 2012

October 1, 2012 throughMarch 31, 2013

April 1, 2013 throughSeptember 30, 2013

Net income per unit (Note 1) (Note 2)¥7,693¥7,522¥7,683

Dividend per unit (Note 1)¥7,850¥7,570¥7,683

Actual payout ratio (Note 3)

102.0%

101.9%

99.9%

Net assets per unit (Note 1)¥339,164¥341,065¥341,178

Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.

(Note 1) On the effective day as of January 1, 2014, the Company implemented a 2-for-1 split of theinvestment unit. Net income per unit, dividend per unit and net assets per unit are described on
the assumption that the split was implemented on the beginning of the 22nd Period.
(Note 2) The net income per unit is calculated based on the average number of units during the period.
(Note 3) The actual payout ratio is described by rounding down to the first decimal place.
(2) Recent unit price conditions
i. Changes in unit prices in the three most recent fiscal periods
22nd Period
23rd Period
April 1, 2012 throughSeptember 30, 2012 (Note)

October 1, 2012 throughMarch 31, 2013 (Note)

24th Period
April 1, 2013 throughSeptember 30, 2013 (Note)

Initial price¥363,000¥393,000¥629,500

High¥399,500¥679,000¥706,000Low¥326,000¥380,500¥472,500

Closing price¥393,000¥644,500¥574,000(Note) On the effective day as of January 1, 2014, the Company implemented a 2-for-1 split of theinvestment unit. Each unit price is described on the assumption that the split was implemented
on the beginning of the 22nd Period.

ii. Changes in unit prices during the last six months
2013
OctoberNovember
December

2014
January

February

March(Note 1)

(Note 1)

(Note 1)

(Note 2)

Initial price¥573,500¥562,500¥544,500¥564,000¥532,000¥541,000High¥587,000¥563,500¥572,000¥575,000¥567,000¥554,000

Low¥550,000¥518,500¥509,000¥517,000¥515,000¥505,000

Closing price¥562,500¥541,000¥564,000¥529,000¥551,000¥508,000(Note 1) On the effective day as of January 1, 2014, the Company implemented a 2-for-1 split of theinvestment unit. Each unit price is described on the assumption that the split was implemented
on October 1, 2013.
(Note 2) Unit price for March 2014 indicates the price as of March 26, 2014
iii. Unit prices on the business day immediately prior to the resolution date of the issuance
March 26, 2014
Initial price¥513,000High¥520,000Low¥508,000

Closing price¥508,000

Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.

(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

October 29, 2012
¥29,678,670,000¥723,870
549,040 units
41,000 units
590,040 units
1. Net proceeds raised through this offering wereused for the repayment of loans totaling ¥15.5 billion.
2. The remaining proceeds were used as part of thefunds toward the acquisition of new specified assets.
Above 1: November 2012
Above 2: January 2013
All amount have been applied to the initial use by theabove scheduled period.

・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 hereof

November 28, 2012
¥2,967,867,000¥723,870
590,040 units
4,100 units
594,140 units
SMBC Nikko Securities Inc.
Net proceeds raised through this offering were usedas part of the funds toward the acquisition of new
specified assets.
January 2013
All amount have been applied to the initial use by theabove scheduled period.

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 March 27, 2014.
However, no assurance or warranties are given for the completeness or accuracy of this English
translation.

Disclaimer: This press release is not an offer to sell or a solicitation of any offer to buy the securities of Japan Real Estate Investment Corporation (the“Company”) in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an
exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to bemade in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may beobtained from the Company and that will contain detailed information about the Company and its management, as well as the Company’s financial
statements. However, the Company will not undertake a public offering and sale of investment units in the United States, and the investment units
have not been and will not be registered under the Securities Act.