39th
Japan Prime Realty Investment Corporation

Security code 8955

Presentation Material For the 39th Fiscal Period
Ended June 2021

（Asset Manager）
Tokyo Realty Investment Management, Inc.

Table of Contents
Overviews of JPR

3

1. Summary of Financial Results

3. Financial Results and Operating Forecasts

Financial Results for the Jun. ‘21 Fiscal Period andOperating Forecasts

5

Overview of Financial Results for the Jun. ‘21 Fiscal Period (period-on-period
comparison)25

Fluctuation in Distribution per Unit

6

27

Operating Environment and JPR’s View

78Overview of Financial Results for the Jun. ‘21 Fiscal Period (compared with
forecast)

Changes in Environment

Growth Strategy

11
12

DPU Strategy

13

Characteristics of JPR Portfolio

Forecasts of Financial Results for the Dec. ‘21 Fiscal Period (compared with Jun’.
21 period)

28

Forecasts of Financial Results for the Jun. ‘22 Fiscal Period (compared with
forecast Dec. ‘21 period)

29

Change in Rental Business Profits and Gain or loss on the sale of properties

30

Change in Rental Business Revenue

31

2. Operational Status and Growth Strategy
4. Appendix

2-1. Internal Strategy
Occupancy Status

15

Leasing Enhanced Real Estate
Status of Rent

16
17

Retail Property

18

2-2. External Strategy
External Strategy

19

Main Sponsor Pipeline

202-3. Financial Strategy
Financial Status

21

Diverse Status of Lenders22

2-4. Sustainability
Highlights

23

Fund Summary
Portfolio

33
34

Diversification of Tenants

35

Move-Ins/Move-Outsof Tenants

36

Yields37

38
Value Enhancing Construction Work 39
Appraisal Value
40
Occupancy Rate and Rent

Appraisal Value by
Property41

JPR’s Commitment to Sustainability

42
43
44

Environment
Society

Governance
Unitholders
Investment Unit Price and DPU
Asset Manager
Office Property Leasing Market
For-Sale Property Market
Portfolio Map
Portfolio List
Introduction to the JPR Website
Glossary
Disclaimer

45
46
47
48
49
50
51
52
57
58
59

2

Overview of JPR■Overview of JPR■Characteristics of JPR(as of the end of June 2021)

Name

Japan Prime Realty Investment Corporation(abbreviated as JPR)

Securities code

8955

Listing dateJune 14, 2002 (19 years since listing)End of fiscal
periodJune and December

Operational
standard of
portfolio(Ratio by asset class)
Office 70～90% / Urban Retail etc. 10～30%(Target investment
ratio)

Asset Manager

Sponsors(shareholding
ratio)

1.

1

A track record of stable management for over
19 years

2

A robust portfolio focused on officeproperties in Tokyo

3(Ratio by area)
Tokyo 80～90% / Other cities 10～20%

Tokyo Realty Investment Management Inc.
(abbreviated as TRIM)

Tokyo Tatemono (75%)
Yasuda Real Estate (10%)
Taisei Corporation (10%)
Meiji Yasuda Life Insurance (5%)

Properties from sponsor pipelines refer to properties acquired from sponsors, etc.
and properties acquired based on information provided by sponsors. Sponsors, etc.
represent the four sponsor companies of JPR, their affiliated companies and special
purpose companies (SPCs) in which the sponsors have made equity investment.
Ratio of properties from sponsor pipelines refers to the ratio of (planned) acquisition
price of properties from sponsor pipelines over the total (planned) acquisition price ofthe entire portfolio.

Since listing, JPR has steadily expanded its asset size while
enhancing the quality of its portfolio.

JPR has established a portfolio that is focused on office properties inTokyo, which feature growth potential, with urban retail properties
and office properties in regional cities to complement profitability.

Superiority pipeline of a developersponsored REIT
JPR has exerted its superiority of a developer-sponsored REIT toacquire properties having excellent location characteristics centering
on large-scale development projects.

45Continuous internal growth through highoccupancy rate and upward revision of rents

65 properties 465.6 bn. yen
Ratio by asset(Area)

Tokyo(Asset class)

OfficeEstablishment of a financial base that is
stable over the long term

Commitment to sustainability
JPR aims to enhance unitholder value through sustainable growthachieved by sincerely tackling societal issues.

85.4%
77.5 %

Acquisition price and ratio of
properties from sponsor pipelines

343.7 bn. yen 73.8 %Period-average Occupancy Rate

98.2%

JPR has maintained higher occupancy rate and continued tonegotiate for the upward revision of rents.

With a credit rating of AA- (Stable), JPR has established afinancial base centering on long-term, fixed-interest rate debts
with a focus on stability.

6

Asset size

(June 2021 Period)

40.6 %
LTV
Credit rating

AA- (stable)
S&P A(stable)R&I

Ratio of long-term, fixed interest rate debts

99.0 %

Inclusion in MSCI ESG SelectLeaders Index
5 Stars, the highest mark, in

GRESB Real Estate Assessment

3

JAPAN PRIME REALTY INVESTMENT CORPORATION

1. Summary of Financial Results

4

1. Summary of Financial
Results（million yen）

Financial Results for the June 2021 Fiscal Period and Operating Forecasts

December 2020
PeriodResultPeriod-on-period
comparison

June 2021
PeriodResultIncrease/
Decrease

Rate of
ChangeCompared with
forecast
Increase/
Decrease

Rate of
ChangeOperating revenue

17,12917,305

+175

+1.0%

+50

+0.3%

Rental income-realestate

9,103

9,021

-81

-0.9%

+74

+0.8%

Operating income

Ordinary income

Net income

Distribution per unit
（yen）

8,533

7,840

8,789

8,121

7,839

8,120

*1

*1

7,750

7,657

+256

+280

+280

+3.0%

+3.6%

+3.6%

+77

+100

+100

+0.9%

+1.3%

+1.3%

December
2021 Period
Forecast

June
2022 Period
Forecast

16,22816,192-6.2%(period-on-period)

8,623

8,728

-4.4%

-1.2%

+107

+1.4%

+1.2%

(period-on-period)(period-on-period)

7,713

7,806

-12.2%+1.2%(period-on-period)(period-on-period)

6,964

7,108

-14.2%+2.1%(period-on-period)(period-on-period)

6,963

7,107

-14.2%(period-on-period)

*2

-93

-0.2%

(period-on-period)

7,550
-1.4%

(period-on-period)+2.1%(period-on-period)

*2

7,550
-%

(period-on-period)*1 Gain on sale of real estate (Dec. ‘20 period: 414 million yen, Jun. ’21 period: 783 millionyen）is reserved internally (allocated to retained earnings)*2 Retained earnings (Dec. ‘21 period: 272 million yen, Jun. ‘22 period: 127 million yen)will be reversed and applied to distribution.

5

1. Summary of Financial
Results

Fluctuation in Distribution per Unit

EPU（earnings per unit) returned to the recovery path after hitting bottom in
the December 2021 period. Gain on sale of real estate, which was retainedinternally, is used to stabilize dividends.
Plus item

Rise Arena Bldg.

Minus item
Gain on sale was retainedinternally to be used to stabilize
dividends in the future

-188

DPU

Lack of previous
periodFor the Jun. ‘21

7,750 Internal

+47
-70

growth53

Move-outof large
tenantExternal
growth Others

188
23
Temporary
reductionof COVID19

72

Gain onsale
property

818

Retainedearnings

818

DPU

Lack of previous
periodFor the Dec. ‘21

6Acquisition of Otemachi FC+108
North tower-35
Sale of JPR Hakata Bldg.

Jun. ’21 period（yen/unit）
Increase in rent and common charge+17(rent revision etc.)
Decrease in rent and common charge-25(move-in/ move-out)-15
Deterioration of balance of utilities expense
Decrease in repairs and maintenance expense +21
Increase in brokerage fee-31+125
Decrease in Depreciation

DPU

7,657

Increase in rent and common charge+61(rent revision etc.)
Decrease in rent and common charge-147(move-in/ move-out)
Increase in cancellation penalty income and+169
income equivalent to expense for restoration-17
Deterioration of balance of utilities expense
Decrease in repairs and maintenance expense +30
Increase in brokerage fee-18

Dec. ’20

Increase in rent and common charge+21(rent revision etc.)
Decrease in rent and common charge-208(move-in/ move-out)
Decrease in cancellation penalty income and-208
income equivalent to expense for restoration
Decrease in repairs and maintenance expense +44
Increase in brokerage fee-23

Retained earnings will
be reversed and used
to stabilize dividends

7,550

+70
-71

Internal
growthTemporary
reductionof COVID19

Reversal of
Retainedearnings

386

Temporary
EPU
reductionof COVID- External
19
growth Others 7,266

028Sale of JPR Hakata Bldg.

284

26

Internal
growth

106

71

68

Propertytaxes

Lack of previous
period

DPU

7,550

EPU
Others 7,417 133

41

Reversal of
Retainedearnings+71-28

Dec. ’21 period （forecast）

Jun. ’22 period （forecast）

Retained earnings per unit
(end of Jun. ‘21 period) 1,969 yen

61. Summary of Financial Results

Operating Environment and JPR’s View

Diversified, robust portfolio gives JPR strength to withstand risks in face ofvarious changes in the environment

Changes inenvironment

JPR’s View

COVID-19

Spread of telework

Large-scale office supply• Restrictions on the movementof people• Deterioration in earnings ofsome enterprises• Rising vacancy rate
• Stagnation of inbound demand• More widespread homeworking• Review of office strategy by IT
enterprises and certain large
enterprises• Emergence of secondary officevacancy rate
• More selective approach tooffice properties• Mounting concern over vacancy
rate• Direct effects of COVID-19 arelimited• Any issues are expected to beresolved as social andeconomic activity returns tonormal with the rollout ofvaccinations• Telework is expected to takehold to some degree• However, office-based work
style will continue to be thenorm• Assuming that office market
will bottom out in JanuaryMarch 2022
• Impact of large supply in 2023
needs to be borne in mind

Diversification of grade and asset class

Well-balanced geographicaldiversification with focus on Tokyo

Focus on office buildings in rent zone
15 to less than 20 thousand yen pertsubo, which are in highest demandOver 70% of properties are locatedwithin a 3-minute walk of thenearest station

Diversified robust portfolio focused on
office properties in Tokyo
7

Changes in Environment (Impact of COVID-19)

1. Summary of Financial Results

Direct effects of COVID-19 are limited, and economic activity is returning tonormal with the rollout of vaccinations
Status of temporary rent reductions and cancellations(commercial tenants)

Status of move-ins and move-outs- In the Jun. ‘21 period, temporary reductions were 22 million yen higher than forecast
because states of emergency and other restrictions unexpectedly dragged on.
- Effects were felt among “bars & restaurants,” which were asked to shorten theirbusiness hours and to refrain from serving alcohol, and “large commercial facilities,”
which were asked to shut completely.
- “Office tenants” were not directly affected.
- Temporary reductions are conservatively assumed to be unchanged from the previous
period in the Dec. ‘21 period.
Jun. ‘20 period

Dec. ‘20 period

Jun. ‘21 period

Dec. ‘21 period(forecast)

Number of temporary
reductions

61

41

39

ー

Amount of temporary
reductions

94 million yen

45 million yen

67 million yen

68 million yen

Number of cancellations－- Move-outs exceeded move-ins, but occupancy rates are expected to bottom
out as economic activity and decision-making by enterprises returns to normal
with the rollout of vaccinations.
（㎡）

10,0000-10,000

Move-out spaces-20,000

２

10

Move-in spaces

20,0005Jun. ‘18 Dec. ‘18 Jun. ‘19 Dec. ‘19 Jun. ‘20 Dec. ‘20 Jun. ‘21 Dec. ’21 (Period)(Forecast)

Share of Population Fully Vaccinated*1 and U.S. Employment Statistics(Change in Nonfarm Payrolls)*2

Status of Leasing- Downtime (DT) increased, partly due to slow decision-making by enterprises
potentially moving in.

- Economic activity is expected to return to normal with the rollout of vaccinations.

（months）

（%）

10

60

Average number of months (DT) to start contract
Average number of months (DT) to start rent

（10 thousand）

U.S. Employment
Statistics

50

91.6

85

37.9

30
20
10

0
Dec. ‘18

Jun. ‘19

Dec. ‘19

Jun. ‘20

Dec. ‘20

Jun. ‘21 (Period)*1. Source: Prepared by TRIM based on data disclosed by Department of Medical Genome Sciences, ResearchInstitute for Frontier Medicine, Sapporo Medical University School of Medicine*2. Source: Prepared by TRIM based on Refinitiv (Thomson Reuters) data

26.6

4.9

Vaccination ratein U.S.

50
30
10

-14

0
'20.12

90
70

55.9

40

5

94.3

Vaccination ratein Japan

-10
-30

'21.1

'21.2

'21.3

'21.4

'21.5

'21.6

'21.7

8

1. Summary of Financial Results

Changes in Environment (Impact of Telework)

Telework is expected to take hold to some degree but an office-based work style
will continue to be the norm.
Status of Remote Working Implementation*1

Remote Working Productivity*2

Adopted but now stopped

How would you rate teleworking if productivity when working at workplace is 100%?

17.7%
Currently adopting
38.5%

64.7%

Less than 100%Not
implementing
61.5%

100% and over 35.2%

Decreased
productivity

Overall average

84.1%

20.1

18.6
13.4

13.3
7.5

0.9

Never adopted
43.8%

14.8%

All employees mustcome into the theirworkplace, in principle

26.7%
Encourage some
employees totelework

19.8%

Beforerollout

2.4

1.3

1.0

1.0

0.3

1.9

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%110%120%130%140%150%
and
over

Telework Policies of Enterprises Before and After Vaccine Rollout*2

Encourage all
employees totelework

0.8

6.8

6.6

4.0

Encourage all
employees totelework

10.9%

Number of in-office days is trending up
All employees mustcome into the theirworkplace, in principle

Encourage some
employees totelework

14.6%

Number of In-office Days Per Week*3

31.2%

After
rollout

Undecided

Undecided

38.7%

43.4%

Jul. 2021

11.6

Apr.

18.5

Jan.

21.5

34.4
32.7

23.2
28.4

33.5

20.2
17.3

17.8

31.3

33.7

Jul.

19.8

28.8

29.3

May

32.1
10%

20%
0 days

37.3
30%

40%

1-2 days

50%

20.4

24.8

Oct. 2020

0%*1. Source: TOKYO SHOKO RESEARCH, LTD. “14th COVID-19 Survey” published March 18, 2021
*2. Source: Persol Research Institute “4th Urgent Survey on the Effects of Telework due to COVID-19 Measures (Comprehensive
Analysis)” published January 21, 2021
*3. Source: Japan Productivity Center “6th Workers’ Awareness Survey” published July 16, 2021

30.8

22.1
21.1

60%

3-4 days

70%

80%

9.5
90%

100%

5 days or more9

1. Summary of Financial Results

Changes in Environment (Large-scale Office Supply)

Assuming office market will bottom out in January-March 2022.
However, impact of large-scale office supply in 2023 needs to be borne in mind.
Monthly Vacancy Rates in Tokyo CBDs*1（%）
9.0

Supply, Absorption and Vacancy Rates in Tokyo’s 23 Wards*2*3

Supply (10 thousand sqm)

Chiyoda Ward

Chuo Ward

Minato Ward

Shinjuku Ward

Shibuya Ward

Tokyo’s Central 5 Wards

Absorption (10 thousand sqm)

Vacancy rate (%)（Forecast）

Average new supply in
1986-2020: 105

8.0

Average new supply
in 2021-2025: 94

179
161

145

141

120

119

109 114

85

97
7.0

3.2

2016

93
61

2.6

6.0

2015

96

85

69
3.9

86

2017

4.0

1.9

2018

49

1.8

2019

2020

2021

2022

2023

2024

2025

(year)

5.0

Breakdown of Office Building Supply by Area and by Size (Forecast)*2
4.0（By area）（By size）

Supply will be concentrated inTokyo’s 3 central wards
3.0

2.0

(year/month)

（％）

80

20

2021

2022

76

24

2022

2023

79

21

2023

2025
Aug. ’20 Sep. ’20 Oct. ‘20 Nov. ‘20 Dec. ‘20 Jan. ’21 Feb. ‘21 Mar. ‘21 Apr. ‘21 May ‘21 Jun. ‘21 Jul. ‘21

Large supply in 2023 will be mostly officebuildings with GFA of 100,000 sqm or more

2021

2024
1.0

（％）

89
78

11
22

(year)

3 central wards

Other 20 wards

22

78
45

55
82

18

2024

57

43

2025

64

36

(year)

100,000 sqm or more
Less than 100,000 sqm*1. Source: Prepared by TRIM based on data published by Miki Shoji Co., Ltd.
*2. Source: Prepared by TRIM based on the 2021 Survey of Large Office Building Market Trends in Tokyo’s 23 Wards published on May 27 2021.
*3. Absorption refers to newly occupied space (Vacant space as of end of previous period＋ New supply－Vacant space as of end of current period.

10Characteristics of JPR Portfolio

1. Summary of Financial Results

JPR has built a robust portfolio diversified in terms of area, grade, asset classand rent zone, with a focus on excellently located office buildings in Tokyo.
Ratio by grade/asset class (all properties, ratio of acquisition price)
S Class
Retail properties

6.4%

22.5%

Tokyo’s 23 wards
57.4%

A Class
12.5%

B Class
20.5%

Other cities 9.0%

Ratio by area（all properties, ratio of acquisition price)
Chuo Ward

Other cities
14.6%

12.7%

Greater Tokyo
besides Tokyo’s
23 Wards
19.4%

16.5% Chiyoda Ward

4.6%

C Class

Greater Tokyo11.1%
outside Tokyo’s
7.7% 10.3%
23 wards
Land withleasehold interest

12.1%
Tokyo’s other18 wards
Shibuya Ward

Diversification of grade and asset class

Ratio by Rent Zone (office properties, ratio of acquisition price)

30 thousand yen
or moreLess than 15
thousand yen
13.3%

15.8%

15 to lessthan 20
thousand yen
25.2%

25 to lessthan 30
thousand yen
14.2%

20 to less than
25 thousand yen
31.6%

71.0%

Focus on office buildings in rent zone 15 to less than 20
thousand yen per tsubo, which are in highest demand
1．Please refer to the glossary for definitions of building classes.

Minato Ward

11.6%
8.5%
Shinjuku Ward

Well-balance regional diversification
with focus on Tokyo

Ratio by number of minutes walk from nearest
station (all properties, ratio of acquisition price)
Within5-10 minutes
7.8%

Within 3-5 minutes
20.2%
Within
1-3 minutes
29.8%

Directly linked
11.1%

Within
1 minute
31.1%

72.0%
Over 70% of properties are located within a
3-minute walk from the nearest station11

1. Summary of Financial
Results

Growth Strategy
ResultInternal
GrowthExternal
GrowthFinancial
Strategy

Occupancy rate

Jun. ‘21
98.2%

Change-1.2ptRate of increase/decrease
on rent revision+2.0%+8.4ptRate of increase/decrease
in rent upon tenant
replacement+3.8%-4.9ptGap in rent

-0.6%

+2.6pt• Sale of JPR Hakata Bldg. improved the ratio of
office buildings in Tokyo and lowered theaverage building age.
• Gain on sale of 780 million yen was reserved
internally to stabilize future dividends.

Jun. ‘21

ChangeLTV

40.6%±0.0ptAverage debt
interest rate

0.73%

-0.02pt

Average maturity

4.8 years+0.2 years

Inclusion in MSCI Japan ESG Select Leaders Index

Sustainability

GRESB
TCFD

5 star (highest mark)Statement of Support

Business environment
perception

Outlook• Leasing activities, especially for large spaces, arebehind schedule.
• The economy is expected to recover from thesecond half of the year with the rollout ofvaccinations.
• It is assumed the office market will bottom out
in the first half of next year.
• Retail will recover to previous levels when the
COVID-19 pandemic is brought under control.

• Seek to fill vacancies quickly, flexibly meeting
tenant needs, while maintaining an awarenessof occupancy rates.
• Continue negotiating upward rent revision
where a rent gap exists.
• Strengthen property competitiveness, aiming tomaintain and improve occupancy and rent levels.

• There is still fierce competition to acquire
properties.
• Opportunities to acquire properties on the open
market are limited.
• Opportunities to acquire properties from sponsor
are expected to increase.

• Focus on acquiring office buildings in Tokyo,
taking full advantage of the sponsor pipeline.
• Debt acquisition capacity: 38.9 billion yen（maximum LTV of 45％)
• Postpone acquisitions of retail properties andhotels for the time being.
• Seek to improve the quality of the portfolio
through asset replacement.

• Interest rates will remain low and debt financing
environment will remain favorable.
• Market for investment units is firm and equity
financing environment will remain favorable.

• Exercise conservative LTV control.
• Reduce financial costs and manage debt basedon an awareness of financial soundness.
• Further diversify fund procurement sources.

• The importance of environmental issues inJapan and overseas will increase further, with
the Japan’s 2050 Carbon Neutral Declarationand the U.S. rejoining the Paris Agreement.

• Make steady progress on 2030 strategy targets
and material issues through company-wide
initiatives.
• Aim to achieve net zero carbon emissions by
2050 for the realization of a decarbonizedsociety.

12

1. Summary of Financial
Results

DPU Strategy

Use retained earnings in the event EPU（earning per unit) temporarily drops.
Assuming EPU will recover from the June 2022 period.
Aim for early achievement of medium-term target of 7,800 yen through executionof growth strategies.
Change in Distribution per Unit and Medium-term Target

Dividend Stabilization Strategy
Seek to stabilize dividends through reversal of retained earnings(retained earnings per unit: 1,969 yen) in the event that EPU(yen/ unit)

Stabilization
through reversal ofinternal reserves

8,000

7,750
7,595
7,493
7,500

(earnings per unit) temporarily drops.
1. Retained earnings per unit is as of the end of the Jun. ‘21 period.

7,800

7,657

Simulation for Medium-term Target

External growth7,550 7,550

Dividend contribution

Around 150 yen

7,380
Acquisition of properties

Every 10 billion yen
7,000Internal growth

1. LTV as of end of Jun. ‘21 period is 40.6％.
2. Debt acquisition capacity is 38.9 billion
yen (maximum LTV of 45％).
3. The above simulation does not include
borrowing costs.

Dividend contribution

Around 150 yen
6,5000Jun. ‘19 Dec. ‘19 Jun. ‘20 Dec. ‘20 Jun. ‘21 Dec. ‘21 Jun. ‘22（Forecast）（Forecast）

Medium- （Period）
term Target

Increase in rents and occupancy rates

Every 1%

13

JAPAN PRIME REALTY INVESTMENT CORPORATION

2. Operational Status and Growth Strategy

14

Occupancy Status

2-1. Internal Strategy

Step up leasing activity with early occupancy in mind. Occupancy rate is expected tohit bottom in the December 2021 period.
Major Move-Ins/Move-Outs

Occupancy Rate and Move-Ins/Move-Outs
Occupancy rate based on concluded contracts
Occupancy rate based on generated rents
Move-in area

98.2%

Move-out area

99.2%

99.2%

99.5%

98.3%

98.6%

98.9%

Move-in rate

99.6%

Dec. '21
Move-out rate

20,000

96.0%
1.5

1.6

2.5

2.7
0.8

1.4

1.0

0
-1.1

-10,000-20,000-4.1
Jun. '18

Dec. '18

-2.2

-1.7

Jun. '19

Dec. '19

-0.7

-1.3
-3.8

Jun. '20

Dec. '20

Jun. '21

-3.1

-612

Kawasaki Dice Bldg.

97.4%

4.3

10,000Dec. '21

Move-in-1,839 1,553

Yakuin Business Garden-1,3106

Oval Court Ohsaki Mark West

-997

3

JPR Harajuku Bldg.

0

Shinjuku Square Tower-3

Olinas Tower（%）-6
Dec. '21（period）

686

997

-757 210 545-660-2,781666-367 367 688-1,055-411

Shibadaimon Center Bldg.

1,145

848 411（forecast）

Fiscal Period of Vacancy Space（month）

20,0004

15,00010,0000（㎡）

Average Free Rent Period

（㎡）

5,000

（period）-6,023 3,173

Rise Arena Bldg.

96.8%

99.1%

96.9%
（㎡）

Move-out

Jun. '21

99.4%
98.2%

99.5%

Jun. '21

2
5,787

3,939

6,559

Jun. '18

Dec. '18

Jun. '19

2,125
Dec. '19

1,646
Jun. '20

3,488
Dec. '20

9,587
Jun. '21

Dec. '21 （period）（forecast）

0

1.5

1.8

1.0

0.8

1.0

1.2

2.4

Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21 Dec. '21（period）（forecast）

15

2-1. Internal Strategy
Rise Arena Bldg.

Greater Tokyo

Leasing Enhanced Real EstateTokyo Square Garden

OfficeCentral Tokyo

OfficeDec. ‘20

Jan. ‘21

Jun. ‘21

Dec. ‘20

Jun. ‘21

100%

０%

52.7%

100%

91.5%

・ Connecting directly to Kyobashi station, the building has excellent transport
links, and offers a standard floor area of more than 1,000 tsubo.
・ A large tenant (2,618 tsubo/JPR’s equity interest: 215 tsubo) was moving
out by May.
Part of this space (744 tsubo/JPR’s equity interest: 61 tsubo) was filled
without downtime.
・ Seek to fill vacant space quickly by fully stressing location and specifications.

・ Connecting directly to Higashi-Ikebukuro subway station, the building has
excellent transport links, and offers a standard floor area of more than 500
tsubo.
・ The tenant which was leasing all office floors (4,769 tsubo/JPR’s equity
interest: 1,822 tsubo) moved out.
・ Renovate common areas to strengthen the building’s competitiveness.
・ Turn into a multi-tenant building and seek to fill vacant spaces quickly.

Shinjuku Square Tower

Central Tokyo

Olinas Tower

OfficeJun. ‘21

Jan. ‘22

100%

88.2%

Greater Tokyo

Jun. ‘21

100%

Greater TokyoJPR Harajuku Bldg.

RetailDec. ‘20

Mar. ‘21

Jun. ‘21

100%

85.4%

97.8%

・ In front of JR Kawasaki Station, this building is in an extremely busy location,
the route for passengers changing from the JR line to the Keikyu line
・ A retail store tenant which leases one floor (5F) (915 tsubo/JPR’s equity
interest: 475 tsubo) moved out but the vacant space has already been filled.
Attracted a tenant with the ability to draw more customers.
・ Three bar & restaurant tenants (155 tsubo/JPR’s equity interest: 80 tsubo)
also moved out.

Dec. ‘21

Mar. ‘22

98.5%

81.0%

・ This integrated office, retail, and residential development is a landmark
building in the Kinshicho area, with a standard floor area of more than 500
tsubo.
・ A large tenant (1,592 tsubo) will move out in March next year.
・ Plan to renovate the common areas to increase the building’s
competitiveness.
・ Seek to fill vacant space early by starting leasing activity quickly.

・ Situated among the skyscrapers in the Nishi-Shinjuku area, the building has
a standard floor area of 290 tsubo.
・ A large tenant (1,028 tsubo/ JPR’s equity interest: 717 tsubo) will move out
by January next year.
・ Seek to fill the vacant space quickly by stressing the property size and highgrade feel.

Kawasaki Dice Bldg.

OfficeCentral Tokyo

OfficeDec. ‘20

Jan. ‘21

Dec. ‘21

100%

84.1%

100%

・ The building is located in the Jingumae area which is popular among young
people and is attracting a great deal of attention
・ Tenants moved out of a first-floor store and a seventh-floor office (165
tsubo).
・ Strengthen property’s competitiveness by renovating the entrance.
・ The first-floor store was occupied by a new tenant without downtime and acontract for the seventh-floor office has been concluded.

Contract cancellation pending

Tenant (s) found16

Status of Rent
Continue to negotiate upward rent revision in cases where a rent gap exists
Seek to maintain and raise rent levels by increasing the competitiveness of properties
through appropriate improvements

2-1. Internal Strategy

Ratio of Increase/Decrease on Rent Revision/Tenant Replacement(% of Total Contracts)

Monthly Rent Revision Increase/ Decease
Rate of upward revision
Upward revision(existing tenant)

27.6
16.0

Downward revision(tenant replacement)(existing tenant and tenant replacement)

23.7■Rent revision

Rate of increase in rent upon tenant replacement

Upward revision

18.9

22.4

18.2

(million yen)

(%)

30
20

13.0

10

40

7.6

7.5

9.0
20
23.2
0

-7.7

7.2
7.4
-0.8

6.8

7.8

6.9

12.9

17.1

13.4

-3.7

-2.6

7.7
3.6
29.2

0

4.4
6.6

3.6
7.6

-0.0

Of which,
reduction of large
tenants -34.6

-20

6.7

16.1
-6.1

Upward revision
Downward revision

Increase in rent
Decrease in rent

（period）

Jun. '19

51.9

47.6

0.5'19.6

Dec. '19

47.7

49.4

2.9
'19.12

94.9

5.1

Jun. '20

56.5

0.0'20.6

88.5

11.5

43.5

75.0

25.0

7.4
-5.1

Dec. '20

32.9

65.7

1.4
'20.12

76.9

23.1

Jun. '21

26.6

72.1

1.2'21.6

75.7

24.3

-35.8

-40

0

Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21 Dec. '21（period）

1.

■Tenant replacement

No change（forecast）
Forecast of monthly rent increase/decrease for Dec. ‘21 period is sum total of upward or downward revisions andincreases or decreases in rent upon tenant replacement.

Area subject to rent renewal
200

100 (%)

050

100 (%)

Status of Gap in Rent (Office/By fiscal period of rent renewal）（million yen）

（thousand ㎡）

50

+40

Lower than market rent

Higher than market range (new contract, etc.)

Within market range

Higher than market range (except for new contract)

Decrease inlarge tenant

150

+20
Gap in rents

100

0.6

▲
%
（period-on period
comparison +2.6pt）

+0

50
0
Jun. '18

Dec. '18

Jun. '19

Dec. '19

Jun. '20

Dec. '20

Jun. '21（period）-20
Dec. '21

Jun. '22

Dec. '22

Jun. '23 （period）

17

Retail Property

2-1. Internal Strategy

JPR’s retail properties are situated in prime locations or in areas close to stations and withhigh commercial potential
Retail properties have long-term fixed rents, in principle, and the occupancy rate is stable, withalmost full occupancy
Retail Property Portfolio

Average Occupancy Rate（Retail properties）

Type

Urban type

Station-front type

Characteristics

Urban retail properties situated onprime locations in Tokyo andOsaka

Retail properties located in
front of stations near Tokyoand in major regional

Number ofproperties
Asset size

9 properties
58.5 billion yen

6 properties
46.1 billion yen

99.7

（%）

100.0

99.4

99.9

99.3

96.0
0
94.0

Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21（period）

Remaining contract
periodUrban type

JPR Ginza
Namiki-dori
Bldg.

Yurakucho
Ekimae Bldg.

(Yurakucho Itocia)

2 years or more
and less than
3yearsFUNDES
Ueno

9.5%

Type of rent

5 years more

28.0%

26.9%

4.3%

Fixed rent andcommission

3 years or more andless than 5 years

Fixed rent

95.7%

35.6%

Stationfront typeType of contract

Tenant sectors

Fixed term
building lease 13.4%

Services 2.0%
Bars &
restaurants

2.7%
Kawasaki Dice Bldg.

100.0

98.0

Less than
2 years

JPR Shibuya
Tower Records Bldg.

100.0

Status of Lease Contract (Retail properties, Space ratio)

Main Retail properties

JPR Umeda Loft
Bldg.

100.0

99.9

Tanashi ASTA

1. Asset size is calculated based on acquisition price.

JPR
Musashikosugi
Bldg.

Housing Design
Center Kobe

Ordinary building
lease(traditional lease)

86.6%

Other

3.2%

Retail92.1%

18

External Strategy

2-2. 内部成長戦略
2-2.
External Strategy

Aim to achieve continuous external growth and improvement of portfolio
quality by using the sponsor pipeline

Properties
acquired

FUNDES Suidobashi

JPR Ginza
Namiki-dori Bldg.
Sponsor’s
pipeline

Sponsor’s
pipeline

Sponsor’s
pipeline

3.25 billion yen

10.1 billion yen

18.4 billion yen

0.17 billion yen

Gain on saleAssetreplacement of 0.2 billion

Sponsor’s
pipeline

5.75 billion yen

3.8 billion yen

3.75 billion yen 13.87 billion yen

Fukuoka Bldg.

Tokyo Tatemono
Kyobashi Bldg.

Building age
23years

Building age
26 years

Building age
38 years

Properties acquired
other than fromsponsors
121.7 billion yen

26.2%
21.1%

Properties acquired
based on information
provided by sponsors
98.2 billion yen

245.5 billion yen
52.7％（Top 5 portfolio properties）
Property Name

billionyen

Tower
1 Otemachi(Land with Leasehold Interest)

36.0

2 Olinas Tower

31.3

3 Shinjuku Center Bldg. 21.0
4 Tokyo Square Garden
Properties acquired using
sponsor pipelines
5 Kanematsu Bldg.

73.8%

1. JPR makes decision based on circumstances at the time of acquisition.

All are sponsor pipeline
properties or sponsor
development properties

Sponsor’s
pipeline

11.4 billion yen

Gain onsale ofAsset
1.19
Sponsors
replacement billion
supportyen
reservedinternally
JPR Hakata Bldg.

Building age
35 years■Continue strategic asset replacement

Utilize debt finance acquisition capacity of 38.9 billion yen (maximum
LTV of 45%) and free cash flow
Properties
acquisition fromsponsors

Otemachi Financial City
North Tower

Sponsor’s
pipeline

Gain on sale
資産
資産
Asset
of 0.4
replacement
入替yenbillion入替
reservedinternally

JPR Hakata Chuo Bldg.

（ Utilizing sponsor pipeline ）Sencity Bldg.

Sponsor’s
pipeline

Sponsors
supportyen reserved
internally

JPR Shinsaibashi
West

Sponsor’s
pipeline■Investigation of acquisitions through negotiated deals
•

2020

Tokyo
Shinagawa Canal Bldg.
Square Garden (Additional ownership） JPR Kojimachi Bldg. FUNDES Ueno

Sponsor’s
pipeline

Sponsors
support

Properties
sold

2019

2017

2016

18.4
16.2

•
•

Create a strong portfolio through continuous asset replacement
Build up internal reserves (retained earnings) which will help stabilize
distributions, through the realization of unrealized gains
JPR• Improve portfolio quality(including reducing averagebuilding ages, enhancing earningpotential and improving location)• Build up internal reserves which
will help stabilize distributions,though the realization of
unrealized gains• Acquire prime properties at areasonable price

Strategic sales

Main sponsor(Tokyo Tatemono)• Tap into needs to acquireredevelopment properties

Asset
replacement

Acquisition ofprime properties• Step up property sales toinvestors• Expand group earning
opportunities bystrengthening fund businessincluding affiliated REITs

19

2-2. External Strategy

Main Sponsor Pipeline

Fully utilize sponsor pipeline to seek to expand acquisition opportunities
Medium-term Business Plan of Tokyo Tatemono(fiscal 2020-2024)

Expand property sales toFurther expand group AUM and earnings
opportunities
Balance of real estate for sale 134.4 billion

investors

yen (as of Jun. 30, 2021)

Key Strategies(excerpt)

Strengthen fund business

AUM, including affiliated REITs, of 1.5
trillion yen (forecast of ‘24)

Tokyo Tatemono’s pipeline
Real estate for long-term ownership reclassified as real estate
for sale[Reclassification as real estate for sale][JPR’s acquisitions]

End of Dec. ’18 : just under 20 billion yen
End Dec. ’19 : just under 10 billion yen
End of Dec. ’20 : 24 billion yen

JPR Kojimachi Bldg.
JPR Shinsaibashi West
Otemachi Financial
City North Tower

Real estate for sale developed as property for investors[Medium-sized office](Tentative) Kodenmacho projectscheduled to be completed Apr. ‘22(Tentative) Sapporo Kita 8 Nishi 1 Redevelopment
Project
scheduled to be completed winter ‘23(Tentative) Shibaura projectscheduled to be completed Spring ‘24[Urban compact retail property]
FUNDES Ginza(Tentative) Tenjin-nishidori projectscheduled to be completed Mar. ‘22

Properties owned by Tokyo Tatemono Co., Ltd.
in the vicinity of Tokyo Station
Name

Completionyear

Otemachi Tower

2014

Otemachi Financial
City Grand Cube
JA Building,
Keidanren Kaikan
Tokyotatemono
Takaracho Bldg.
Tokyo Tatemono No.
3 Takaracho Bldg.
Nihonbashi TI Bldg.

2016

OtemachiFinancial City
North Tower

2009
1966
1971
2012
NihoNihombashi
Mitsukoshi Main
StoreTokyo Tatemono
2015
Nihonbashi Bldg.
Nihonbashi First Bldg. 1994
Shin-gohukubashi Bldg. 1977
Tokyo Tatemono
Yaesu Bldg.

2011

NTA Nihonbashi Bldg. 1991
Tokyo Tatemono
Yaesu-sakuradori Bldg. 1974
Kyobashi YS Bldg.

1990

Empire Bldg.
Kyobashi Edogrand
Bldg.

2017

Daimaru Tokyo
Department StoreTokyo Sta.

2016

Fukuoka Bldg.

1990

Tokyo Square Garden

2013Tokyo Tatemono
Kyobashi Bldg.

1981[JPR’s acquisitions]

FUNDES Ueno
Construction completion:
Up to and including 2000
2009 - 20142015 and thereafter

NihoNihonbashi
Takashimaya
Department Store

Yaesu
Book Center
Tokyo
Internation
al Forum

FUNDES Suidobashi

MaruzenBook Store

Kanematsu
Bldg.
Kanematsu
Bldg. Annex

JR Keiyo Line
Yurakucho Mullion

Yurakucho
Itocia

1. The balance of Tokyo Tatemono’s real estate for sale is the balance of the building business and also include assets not for acquisition by JPR such as logistics facilities.
2. JPR owns the land with leasehold interest of “Otemachi Tower” and co-owns “OtemachiFinancial City North Tower“, “Tokyo Square Garden”, “Kanematsu Building”, “Kanematsu Building Annex” and “Yurakucho ITOCiA”.

20

2-3. Financial Strategy

Financial Status

Build strong financial base through lengthening of maturity and flattening of
repayment amount and conservative LTV control
Debt Procurement Results in the Jun. ‘21 Fiscal Period(short-term loans excepted)
Beforerefinancing

Funding

Diversification Status of Repayment Dates

ChangeAverage maturity

5.6 years

9.7 years+4.1 years

Average debt
interest rate

0.66%

0.59%

-0.08pt

Jun. ‘21

ChangeInterest-bearingdebt

196.5 billion

196.5 billion-0.02 billion

yen

yen

yen

LTV

40.6%

40.6%

±0.0 pt

Average maturity

4.6 years

4.8 years+0.2 years

Average debt
interest rate

0.76%

0.73%

-0.02 pt

Ratio of long-term,
fixed interest rate
debts

96.9%

+2.0 pt

Status of Credit Rating（Long term issuer rating）
R&I

S&P

AA- （Stable）

A （Stable）

50

20

105
50 100Dec. ‘20

99.0%

Investment corporation bonds

Commitment limit

150

20

80 80

70 80

24.0 billion yen

30

30

130

43.6 billion yen
approx. 20 billion yen

inc. free cash flow

Short-term loans payable（100 million yen）

100

Status of Interest-Bearing Debts

Cash and deposits

Long-term loans payable

130
109
100

85

50
102

90
30

50

118

60

71
40

35

40 30

30

0
（period）

Change in LTV(%)

45Control, aiming for maximum LTV of 40-45%
43.7

43

41

Debts acquisition capacity
38.9 billion yen

PublicOffering

PublicOffering

40.7
40.6

40.6

40.5

40.9

40.8

39.5

40.6
40.6

39
Dec. '16 Jun. '17 Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21（period）
1. ”Free cash flow” is the amount of cash and deposits which TRM judges to be available after deduction of distribution payments and an amountequivalent to lease deposits received.

21

2-3. Financial Strategy

Diverse Status of Lenders (as of June 30, 2021)

Diversifying fund procurement sources with a lender formation comprising
35financial institutions and through issuance of investment corporation bonds
The Yamanashi Chuo Bank
【New】

1.0

Sumitomo Mitsui Trust Bank

1.0

Mitsui Sumitomo Insurance Company

1.0（Breakdown of investment corporation bonds）（billion yen）

Name

Amount7th series of bonds

4.5

Hiroshima Bank

1.0

Hyakugo Bank

1.0

18th series of bonds

2.0

Investment

Mizuho Bank, Ltd

corporation bonds

5.0

Tokio Marine & Nichido Fire Insurance

1.0

19th series of bonds

26.0

4.0

1.0

35.5

21st series of bonds

Chiba Bank

22nd series of bonds

3.0

Daido Life Insurance Company

1.0

3.0

1.0

（Of which Green
Bonds 11.0）

23rd series of bonds

Daishi Hokuetsu Bank

24th series of bonds

5.0

25th series of bonds

6.0

26th series of bonds

3.0

The 77 Bank

（Of which short term loan 2.0）

MUFG Bank, Ltd.

1.0

21.0

Kiyo Bank

1.0

NTT FINANCE CORPORATION

1.0

Resona Bank

2.0

Yamaguchi Bank

2.0

Hachijuni Bank

2.0

Nippon Life Insurance Company

2.0

Sompo Japan Insurance

2.0

National Mutual Insurance Federation ofAgricultural

2.0

Iyo Bank

2.0

Chugoku Bank

3.0

Taiyo Life Insurance Company

3.0

Nishi-Nippon City Bank

4.0

Shinkumi Federation Bank

4.0

Sumitomo Life Insurance Company

4.0

Aozora Bank, Ltd. 5.4

Meiji Yasuda Life Insurance Company

4.2

The Bank of Fukuoka, Ltd. 6.0

Interest-bearing
debt balance Sumitomo Mitsui Banking
Corporation
196.5 billion yen

Green Bonds

12.5

Development Bank of Japan, Inc.
10.9
Shinsei Bank,
Ltd. 10.0

Shinkin Central Bank 7.0
Mizuho Trust & Banking Co.,The Norinchukin Bank 7.0（Status of commitment line）

LenderCreditlimit

Mizuho Bank, Ltd.

4.0

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Aozora Bank, Ltd

4.0

Mizuho Trust & Banking Co, Ltd.

4.0

4.0
4.0

Resona Bank, Ltd

4.0

Total

24.0

Ltd. 7.0

22

2-4. Sustainability

Highlights

Sustainability initiatives are crucially important for JPR
Set new target（net zero CO2 emissions by 2050）
External Evaluation of JPR’s Sustainability Initiatives

Materiality and SDGs
Materiality
Portfolio greening

2030 Target etc.

SDGs

Inclusion in MSCI ESG Select Leaders Index

Support for TCFD

Inclusion in MSCI Japan ESG Select Leaders Index
in May 2021

Statement of support in May 2021

GRESB Real Estate Assessment

Acquisition of Environmental Certification

Awarded the highest ranking fortwo straight years

Acquisition rate: 71.4％（June 2021 period）

Participation in the CDP’s Climate Change
programSignatory of PRI(Principles of Responsible
Investment)

Received the “B” designation in 2020

Became a signatory in May 2019

Green certification acquisition rate of 80% or
more
Improving coverage over standard evaluation

Countering climatechangeNet zero CO2 emissions by 2050
Achieving 30% reduction in CO２ per floor area(compared with the 2017 level)
Achieving 10% reduction in water use per floorarea (compared with the 2017 level)
Building industry-leading climate change risk
response capabilities
Expansion of green lease agreement

Improving tenantsatisfaction with safety,
security and comfort

Improving overall tenant satisfaction (safety,
security and comfort)

Creating a rewarding
workplace environment

Fostering professionals who support corporate
growthImprovement of business efficiency and process
Realization of physical, mental health and worklife balance
Providing an environment where each person canplay active roles

Strengthening corporate Industry-leading information disclosure
governance
Active dialogue with investors
Promoting dialogue with individual investors
Obtaining industry-leading ESG valuation
Maintaining strong corporate governanceIndustry-leading risk management

1. The inclusion of JPR in any MSCI index, and the use of MSCI logos, trademarks, service marks or index
names in notices thereof, do not constitute a sponsorship, endorsement or promotion of JPR by MSCI or
any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index
names and logos are trademarks or service marks of MSCI or its affiliates.
2. TRIM issued a statement of support for the TCFD recommendations and became a signatory to the PRI.

23

JAPAN PRIME REALTY INVESTMENT CORPORATION

3. Financial Results and Forecasts of Financial Results

24Overview of Financial Results for the Jun. ‘21 Fiscal Period (period-onperiod comparison)

3. Financial Results andOperating Forecasts

Results of the Jun. ‘21 fiscal period : DPU: 7,657 yen (down 93 yen period-on-period)
Results reflect contract cancellations by large tenants and action taken as a result of the declaration of further
states of emergency such as temporary rent reduction, which outweighed the contribution of the replacement ofassets from the Dec.’20 period through the Jun. ‘21 period
Dec. '20
PeriodJun. '21
PeriodChangeOperating expense
Revenue
Expenses related to rent businessand profit
General and adminisutrative expenses(million
Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Transferred from reserve
DPU (yen) (per unit)

17,12916,714
414
8,596
7,611
985
8,533
46
739
7,840
7,839
414
7,750

17,305
16,521
783
8,515
7,499
1,016
8,789
72
740
8,121
8,120
783
7,657

+175
-193
+369
-81
-111
+30
+256
+25
+1
+280
+280
+369
-93

Number of units outstanding

958,250

958,250-

Item
Operating revenue
Rental revenue
Gain on sale of property⑤

Rental revenue① ［Rent and common charge］ Decreased due to contract cancellations by large tenants and action
taken in response to declaration of ruther states of emergency suchas temporary rent reduction② ［Incidental income］Decreased due to seasonal factors

Expenses related to rent business③ ［Utilities expense］ Decreased due to seasonal factors, and balance of utilities expense deteriorated(-16 million yen)
④ ［Property and other taxes］ Increased due to occurrence of property and other taxes on properties
acquired in the previous year

Gain on sale of property⑤［Gain on sale of property］ Appropriated partial sale of JPR Hakata Bldg. (beneficiary interest
65%)

*1

Increase or decrease as a result of replacement of the following assets is calculated.
Dec. ‘20 period: Acquisition of Otemachi Financial City North Tower, sale of JPR Hakata Bldg. (quasi-co-ownership
equity (beneficiary interest) 35%)
Jun. ‘21 period: Sale of JPR Hakata Bldg. (quasi-co-ownership equity (beneficiary interest) 65%）

*2 The figures are calculated for increase or decrease due to properties other than the above.
(The main factors for increase/decrease of existing properties are described in ① to ④.)25

3. Financial Results andOperating Forecasts

Overview of Financial Results for the Jun. ‘21 Fiscal Period (period-onperiod comparison)

Result of the Jun. ‘21 fiscal period
Total assets: 484,323 million yen, total unitholders’ equity per unit: 268,295 yen

26

Overview of Financial Results for the Jun. ’21 Fiscal Period(compared with forecast)

3. Financial Results andOperating Forecasts

Results of the Jun. ‘21 fiscal period, DPU compared with the forecast : up 107 yen
Rental revenue was in line with the initial forecast mainly due to progress with leasing activities for small
blocks despite the greater-than-anticipated impact of action taken as a result of the declaration of further
states of emergency such as temporary rent reductions
Item
Operating revenue
Rental revenue
Gain on sale of property
Operating expense

Revenue
Expenses related to rent businessand profit
Selling, general and adminisutrative expenses(million
Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Transferred from reserve
DPU (yen) (per unit)
Number of units outstanding (unit)

Jun. '21
PeriodJun. '21
Period（forecast）（actual）

17,255
16,470
784
8,543
7,523
1,019
8,712
53
745
8,020
8,020
784
7,550

17,305
16,521
783
8,515
7,499
1,016
8,789
72
740
8,121
8,120
783
7,657

958,250

958,250

Item

Change
+50
+50
-0
-27
-23
-3
+77
+18
-4
+100
+100
-0
+107

Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income
Other rental revenue
Incidental income④-

Rental revenue① ［Rent and common charge］In line with the initial forecast mainly due to progress with leasing
activities for small blocks despite the greater-than-anticipated impact of action taken as a result of
the declaration of further states of emergency such as temporary rent reductions (initiallyanticipated cost of temporary rent reductions: 45 million yen: actual cost: 67 million yen)
② ［Incidental income］Decreased due to the COVID-19 pandemic, it did not recover to the initial forecast

Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income

Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related to rent business

Expenses related to rent business

NOI
NOI yield (book value)③ ［Utilities expense］Decreased due to the COVID-19 pandemic, it did not recover to the initial forecast

Rental income-real estateNon-operating revenue and expenses

Occupancy rate based on cncluded contract(period average)

After-depreciation (book value)④ ［Non-operating revenue］ Increased due to recording of management association reimbursements
and insurance proceeds

Jun. '21
PeriodJun. '21
Period（forecast）（actual）

16,47015,591
13,432
1,793
365
879
778
40
20
40
7,523
635
809
2,444
26
415
299
595
2,098
197
11,045
5.1%
8,947
4.1%
98.0%

16,521
15,601
13,431
1,797
372
919
676
66
133
42
7,499
630
714
2,436
26
504
302
588
2,100
196
11,121
5.1%
9,021
4.1%
98.2%

Change
+50
+10
-0
+4
+6
+40
-101
+26
+113
+2
-23
-4
-95
-8
+0
+88
+2
-7
+1
-0
+76
- pt
+74
- pt
+0.2pt

①

②

③

27

Forecasts of Financial Results for the Dec. ‘21 Fiscal Period(compared with Jun. ‘21 period)

3. Financial Results andOperating Forecasts

Forecast of the Dec. ‘21 fiscal period, DPU: 7,550 yen (down 107 yen from the Jun. ‘21 period)
Delays in leasing activities due to COVID-19 will continue to have an impact
DPU will be secured 7,550 yen though the reversal of internal reserves
ItemJun. '21
PeriodDec. '21
PeriodChange（forecast）
Operating revenue
Rental revenue
Gain on sale of property
Operating expense
Revenue andprofit(million yen)

Expenses related to rent business
General and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income

Reserve(million yen)
DPU (yen)Transferred from reserve
Transferre from deferral of gains
on sales property(per unit)

Number of units outstanding

17,305
16,521
783
8,515
7,499
1,016
8,789
72
740
8,121
8,120
783
7,657

16,228
16,228
8,514
7,604
909
7,713
3
753
6,964
6,963
272
7,550

-1,077958,250

958,250

-

-293
-783
-1
+105
-106
-1,075-68+12-1,156-1,156
-783
+272
-107

⑤

⑥

Rental revenue① ［Rent and common charge］ Delays in leasing activities due to COVID-19 will continue to havean impact②［Incidental income］Increase chiefly due to seasonal factors etc.

Expenses related to rent business③［Utilities expense］ Use will increase mainly due to seasonal factors and balance of utilities is
expected to be mostly unchanged④［Other expenses related to rent business］Brokerage fees, etc. will increase

Gain on sale of property⑤［Gain on sale of property］ Appropriated gain on sale of property in the previous period willabsentNon-operating income and expense⑥ ［Non-operating revenue］ Revenue will decrease in the absence of recording of settlement on
management association accounts*1 The increase/decrease due to JPR Hakata Bldg. (beneficiary interest 65%) which is due to be sold in
the Jun. ‘21 fiscal period is calculated.
*2 Increase/decrease for existing properties, excluding the above, is calculated (the major factors
behind the increase/decrease for existing properties are described in ① to ④).

28Forecasts of Financial Results for the Jun. ‘22 Fiscal Period (comparedwith forecast Dec. ‘21 period)

3. Financial Results andOperating Forecasts

Forecast of the Jun. ‘22 period, DPU: 7,550yen (even from Dec. ‘21 period forecast)Rental income is expected to recover, after hitting bottom in Dec. ‘21 period
DPU will be secured 7,550 yen though the reversal of internal reserves
Item
Operating revenue
Rental revenue
Operating expense
Expenses related to rent business

Revenue andGeneral and administrative expenses
profit(million yen) Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen)Transferre from deferral of gains
on sales property

DPU (yen) (per unit)
Number of units outstanding

Dec. '21
PeriodJun. '22
Period（forecast）（forecast）

16,228
16,228
8,514
7,604
909
7,713
3
753
6,964
6,963
272
7,550

16,192
16,192
8,386
7,464
921
7,806
56
754
7,108
7,107
127
7,550

958,250

Change
-35
-35
-128
-140
+12
+92
+52
+0
+144
+144
-144
-

958,250-

Item
Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income

Other rental revenue⑥

Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums

Rental revenue

Repairs and maintenance① ［Rent and common charge］Revenue will increase due to the resolution of decreasing income bya temporary rent reduction and rising the occupancy rate②［Incidental income］Likely to decrease chiefly due to seasonal factors

Management association accounts

Property management fees

Depreciation

Expenses related to rent business③［Utilities expense］ Use will decrease mainly due to seasonal factors, and balance of utilities is
expected to worsen④［Property and other taxes］Property tax will increase⑤［Depreciation］Existing properties will be fully depreciatedNon-operating income and expense⑥ ［Non-operating revenue］ Likely to increase due to recording of management association
reimbursements

Other expenses related to rent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Dec. '21
PeriodJun. '22
Period（forecast）（forecast）

16,22815,377
13,203
1,802
372
850
807
43
7,604
628
846
2,422
26
460
285
600
2,107
225
10,730
4.9%
8,623
3.9%
96.8%

16,192
15,43813,264
1,802
371
753
711
42
7,464
621
766
2,493
26
440
286
595
1,986
246
10,714
4.9%
8,728
4.0%
97.5%

Change
-35
+60
+61
-0
-96
-95
-1
-140
-7
-80
+71
-0
-20
+0
-4
-120
+20
-15
-pt
+104
+0.1pt+0.7pt

①

②

③
④

⑤

29

3. Financial Results andOperating Forecasts

Item
Operating revenue

Change in Rental Business Profits and Gain or loss on the sale ofproperties

Jun. '20 Period

16,363
Rental revenue (fixed income)
15,674
Rents and common charge
13,520Land rent
1,783
Other fixed income
370
Other rental revenue (variable income)689
incidental income
620
Cancellation penalty, etc.
921
Other variable income
37
Expenses related to rent business (excluding depreciation)
5,408
Rental businessOutsourcing fees
615
profits
Utilities expenses
712
Property and other taxes
2,358(million yen)
Insurance premiums
26
Repairs and maintenance602
Property management fees
331
Management association accounts
573
Other expenses related to rent business
187
NOI
10,954
Depreciation
2,027
Expenses related to rent business 7,436
Rental income-real estate（a）
8,927
Capital expenditures
1,380
NCF
9,574
Gain on sale of real estate（b）
Gain or loss on sale ofproperties (million yen)
Loss on sale of real estate（c）
Rental income-real estate, etc. (million yen, a+b-c）
8,927

Dec. '20 Period

Change

2.2%
3.9%
4.5%
0.5%
-25.4%-22.5%

Income ecquivalent to expense for restoration to original condition

-2.8%
1.0%
-17.8%
1.0%
-1.3%

4.9%
2.7%
-1.4%
5.4%
-12.8%
8.1%

5.4%

Jun. '21 Period

Change16,714
15,788
13,616
1,793
378
926
833
15
37
40
5,526
630
841
2,387
26
558
306
585
190
11,188
2,085
7,611
9,103
1,654
9,534
414
9,518

2.1%
0.7%
0.7%
0.5%
34.5%
34.4%

2.2%
2.4%
18.0%
1.2%
-7.3%

2.1%
2.8%
2.4%
2.0%
19.8%
-0.4%

6.6%

16,521
15,601
13,431
1,797
372
919
676
66
133
42
5,399
630
714
2,436
26
504
302
588
196
11,121
2,100
7,499
9,021
1,370
9,751
783
9,805

Dec. '21 Period

Jun. '22 Period

Change（forecast）

Change（forecast）

Change

-1.2%
-1.2%
-1.4%
0.3%

16,22815,377
13,203
1,802
372
850
807
43
5,497
628
846
2,422
26
460
285
600
225
10,730
2,107
7,604
8,623
1,743
8,986
8,623

-1.8%
-1.4%
-1.7%
0.3%

16,192
15,43813,264
1,802
371
753
711
42
5,477
621
766
2,493
26
440
286
595
246
10,714
1,986
7,464
8,728
1,664
9,050
8,728

-0.2%
0.4%
0.5%
0.0%

-0.7%
-18.8%-2.3%
0.1%-15.1%
2.0%
-9.7%

-0.6%
0.7%
-1.5%
-0.9%
-17.2%
2.3%

3.0%

-7.6%
19.2%

1.8%
-0.3%
18.6%
-0.6%
-8.6%

-3.5%
0.3%
1.4%
-4.4%
27.3%
-7.8%

-12.1%-11.3%-11.8%

-0.4%
-1.2%
-9.5%
3.0%
-4.4%

-0.1%
-5.7%
-1.8%
1.2%
-4.5%
0.7%

1.2%

30

3. Financial Results andOperating Forecasts

主要項目の変動状況
Change in Rental Business Revenue

Rental revenue for the Dec. ‘21 period is expected to fall approx. 228 million yen (period-on-period)
Rental revenue for the Jun. ‘22 period is expected to rise approx. 61 million yen (period-on-period)
Rent revenue (factor for period-on-period changes)
Rent revenue
Plus item
Rents and
-185
common charge

Minus item

-228

（million yen）

Rents andcommon charge +61

+4

-602

Lack of the previous period +45
For the Jun. ‘21 period-67

Lack of the previous period +67
For the Jun. ‘21 period-68

Dec. ‘21 Period（forecast）

+434

-458

+68

OthersTemporary
reduction by
COVID-19

Revisions,
etc.
Move
-outs

-48

Move
-ins

15,377
Others

0

Sale

+20

Temporary
reduction by
COVID-19

Others+403

Acquisition+202
Sale -102

Jun. ’21 Period..
Revisions, etc.

-22

-1

Move
-ins

-180

15,601

Move
-outs

+59

Temporary
reduction by
COVID-19-311+99
Move-outof majortenant

Move
-outs

+170

Revisions,
etc.

Move
-ins

Acquisition& sale15,788Dec. ‘20

Rents and-48
common charge

15,4380+16Lack of the previous period +68

Jun. ‘22 Period（forecast）

31

JAPAN PRIME REALTY INVESTMENT CORPORATION

4. Appendix

32

4. Appendix

Fund Summary
Jun. 2021 Period

Dec. 2018 Period

Jun. 2019 Period

Dec. 2019 Period

Jun. 2020 Period

Dec. 2020 Period(book value)

40.5%

40.9%

40.8%

39.5%

40.6%

40.6%

(appraisal value)

34.2%

33.9%

32.9%

32.2%

33.2%

33.1%

(acquisition value)

4.7%

4.8%

4.7%

4.9%

4.9%

4.8%

(book value)

5.0%

5.1%

5.0%

5.2%

5.2%

5.1%

(appraisal value)

4.1%

4.1%

4.0%

4.1%

4.1%

4.1%

Afterdepreciationyield(acquisition value)

3.8%

3.9%

3.8%

4.0%

4.0%

3.9%

(book value)

4.0%

4.1%

4.1%

4.2%

4.2%

4.1%

(appraisal value)

3.4%

3.3%

3.2%

3.4%

3.4%

3.3%

Implied cap
rate(NOI yield)

3.7%

3.3%

3.4%

4.6%

4.3%

3.6%

(After-depreciation yield)

3.0%

2.7%

2.7%

3.7%

3.5%

2.9%

FFO

8,707 million yen

8,776 million yen

8,888 million yen

9,341 million yen

9,510 million yen

9,436 million yen

AFFO

LTV

NOI yield

7,581 million yen

7,451 million yen

7,305 million yen

7,961 million yen

7,855 million yen

8,066 million yen

FFO per unit

9,433 yen

9,508 yen

9,630 yen

9,748 yen

9,924 yen

9,847 yenEPU7,324 yen

7,818 yen

7,491 yen

7,593 yen

8,181 yen

8,474 yen

Cash distribution per unit

7,326 yen

7,380 yen

7,493 yen

7,595 yen

7,750 yen

7,657 yen

3.5%

3.0%

3.1%

4.6%

4.5%

3.4%

Dividend yield
ROE

5.7%

6.0%

5.8%

5.7%

6.1%

6.3%

308 yen

746 yen

746 yen719 yen

1,152 yen

1,969 yen

Net asset per unit

258,626 yen

259,118 yen

259,230 yen

266,984 yen

267,570 yen

268,295 yen

NAV per unit
Investment unit price341,007 yen

353,795 yen

368,917 yen

371,053 yen

372,725 yen

375,544 yen

423,000 yen

490,500 yen

488,000 yen

329,000 yen

346,500 yen

444,000 yen

NAV multiple

1.2 times

1.4 times

1.3 times

0.9 times

0.9 times

1.2 times

PBR

1.6 times

1.9 times

1.9 times

1.2 times

1.3 times

1.7 times

PER

28.9 times

31.4 times

32.6 times

21.7 times

21.2 times

26.2 times

FFO multiple

22.4 times

25.8 times

25.3 times

16.9 times

17.5 times

22.5 times

53.4%

52.9%

52.8%

54.1%

52.9%

53.1%

（FFO）

77.7%

77.6%

77.8%

77.9%

78.1%

77.8%

（AFFO）

89.2%

91.4%

94.7%

91.4%

94.5%

91.0%

Reserve for reduction entry per unit

(immediately before the ex-right date)

Unitholder’s equity ratio
Pay out ratio

1. [after-depreciation] Implied cap rate = [after depreciation] NOI (annualized, forecast
for the next fiscal period x 2) / (market capitalization + interest-bearing debts – cash
and deposits + tenant leasehold and security deposits)
2. FFO = Net income + depreciation – gain on loss on sale of real estate properties(including loss on retirement of non-current assets)
3. AFFO = FFO – capital expenditures
4. EPU = Net income / number of units outstanding (end of period)

5. Dividend yield = Cash distribution per unit (annualized, most recent result x 2) /investment unit price6. ROE (return on equity) ＝ Net income (annualized, most recent result x 2) / net
assets
7. NAV per unit = (Net assets + unrealized gains or losses – total cash distributions) /number of units outstanding (end of period)
8. NAV multiple = Investment unit price / NAV per unit
9. PBR (price book-value ratio) = Investment unit price / net assets per unit

10.
11.
12.

PER (price earnings ratio) = Investment unit price / EPS (annualized, most recent result x 2)
FFO multiple = Investment unit price / FFO per unit (annualized, most recent result x 2)
Unitholder’s equity ratio = Net assets + total assets

13.
14.
15.

FFO payout ratio = Total cash distributions / FFO
AFFO payout ratio = Total cash distributions / AFFO
Reserve for reduction entry indicates the figure calculated by adding or subtracting the amounts brought
forward or reversed in the relevant fiscal period to or from the balance at the end of the fiscal period.

33

4. Appendix

Portfolio■ Asset Size (based on acquisition price, 100million yen）, Occupancy rate (%)
Office properties
in Tokyo

95.2

94.0 93.8

Office properties
in Other Cities

92.6 93.1

94.3 94.9

96.1

97.7

98.3 99.0 98.7

Occupancy rate

Occupancy rate
稼働率

Retail properties
98.0

97.0 96.2 96.4

（average）

96.1
93.6 94.0

95.0 94.8 94.4 95.6

3,809

2,751 2,806

1,636
1,257
922

1,796

1,976 2,026

2,092

2,224

2,994

3,106

3,312

3,919 3,986

96.9 97.0 97.2 97.5 97.4

97.8 98.3 98.5 98.4 98.2

4,047 4,047 4,055 4,095 4,103 4,103

4,214

99.2 99.2 99.5 99.6 99.4

4,350 4,350 4,350 4,350 4,395 4,395

4,571

96.7%

98.2

4,675 4,656

Breakdown by areaand by asset class(as of Jun. 30, 2021)

3,415 3,415 3,449

Office properties inTokyo

318.9 billion yen

2,453 2,519

Office properties in
Other Cities

1,396

41.9 billion yen

945

Retail properties

104.7 billion yen
120
110
.0
100
90.
0
80.
70.
0
60.
0
50.
40. 0
30.
20.
10.
0
0.0

1

2
'02

3

4
'03

5

6

7

'04

8

9

'05

10
'06

11

12

13

'07

14
'08

15

16
'09

17

18
'10

19

20

21

'11

22

23

'12

24
'13

25

26

27

'14

28
'15

29

30

31

'16

32
'17

33

34

35

'18

36
'19

37

38
'20

39 (period)'21(year)■ Every Kind of Ratio
Ratio by Asset Class

Ratio by Area

Ratio by Asset Size

(Ratio of Acquisition Price)(Ratio of Acquisition Price)(Office Properties, Ratio of Acquisition Price)

Ratio by Number of
Minutes Walk from
Nearest Station

Ratio by Contract Type(Office Properties, Area Ratio)（Ratio of Acquisition Price)

Medium-sized

Retailproperties

Other Cities
14.6

22.5%

%

Portfolio management
standards
70 - 90%
for office properties

Officeproperties
77.5%(3,000 m2 to less than
10,000 m2)

28.8%(30,000 m2 or more)

48.9%

Portfolio management
standards

Greater
Tokyo
30.2%

Very large

Within5-10 minutes Directly linked
11.1%
7.8%
Within3-5 minutes
20.2%

80 - 90% for Tokyo

Central
Tokyo
55.2%

Large
(10,000 m2 to less than
30,000 m2)

22.3%

Within
1-3 minutes
29.8%

Within
1 minute
31.1%

Fixed-termlease contract

14.5%

Ordinary
lease
contract

85.5%

34

4. Appendix

Diversification of Tenants (as of June 30, 2021)■ Ratio of Tenant Occupancy■ 20 Largest Tenants (by property; based on end tenants)• The number of office tenants other than the sponsors, etc. withtenant occupancy of 1% or more is only 2 (combined occupancy:2.1%) (excluding property comprising land with leasehold interest).

Category• Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenantswith 1% or more

27.5%

Occupying property

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.3

Seiyu GK

Tanashi ASTA

31,121.71

6.4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.1

JPR Umeda Loft Bldg.

18,586.97

3.8

9,558.51

2.0

8,076.85

1.7

Retail tenants with The LOFT, Co., Ltd.
1% or more
Olympic Group Corporation(8 companies)

(㎡)

(%)

Tower Records Japan Inc.

Musashiurawa Shopping
SquareJPR Shibuya Tower Records
Bldg.

A company

Cupo-la Main Bldg.

5,963.00

1.2

B companyMusashiurawa Shopping Square

5,285.40

1.1

Tokyo Prime Stage Inc.

The Otemachi Tower(land with Leasehold Interest

7,875.50

1.6

C company

Olinas Tower

5,263.77

1.1

D company

JPR Nagoya Fusimi Bldg.

4,904.64

1.0

Medical and Welfare

E company

Yakuin Business Garden

4,719.50

1.0

Other

F company

Sompo Japan Sendai Bldg.

4,392.04

0.9

G company

Olinas Tower

4,255.56

0.9

H company

Shinjuku Square Tower

4,242.48

0.9

I company

Gotanda First Bldg.

4,234.29

0.9

J company

Oval Court Ohsaki Mark West4,088.44

0.8

K company

Niigata Ekinan Center Bldg.

4,078.97

0.8

L company

Omiya Prime East

4,005.05

0.8

M company

MS Shibaura Bldg.

3,922.74

0.8

Sponsors, etc.
with 1% or more
Other tenants 1.6%
with 1% or more

2.1%

Sponsors, etc.
with 1% or more
(1 company)

Less than 1%
68.8%

Other tenants with
1% or more
(2 companies)■ Ratio by Tenant’s Industry(Office Properties, Area Ratio)
Transportation

Ratio of

Leased space occupancy

Tenant(No. of tenants)

3.6%

PublicServices

1.5%

0.9%

3.9%

Construction

7.4%

Services

24.8%

Real Estate

8.2%

Wholesale andRetailInformation andCommunications

10.8%

16.4%

Finance andInsurance

12.3%

Manufacturing

10.3%

Less than 1%(793 companies)

35

4. Appendix

Move-Ins and Move-Outs of Tenants (as of June 30, 2021)■ Move-In/Move-Out Spaces by Property■ Breakdown and Changes in Move-Ins and Move-Outs(Move-ins)‐(move-out)(Move-in/move-out spaces by area and asset class: m2)

Move-Ins
Office properties inCentral Tokyo

Move-Outs

4,220

Office properties inGreater Tokyo-5,222

5,826

Office properties in
Other Cities-3,276-2,117

1,553

Total

-1,002-9,103

206

Retail properties

Net
Increase/Decrease

11,805-6,476

reduction

Eviction, etc.
3%or expansion

11%
Consolidation
5%
Better location orbuilding

16%

establishment

Better location or65%

Move-ins
37

-396

396

-40

40
997

Shinjuku Square Tower

484

-660

1,145

BYGS Shinjuku Bldg.

-211

-211

0

Across Shinkawa Bldg. Annex

-286

-286

0

Shinjuku Center Bldg.

-319

-319

0

Shinagawa Canal Bldg.

-171

-171

0

JPR Harajuku Bldg.

-546

-757

210

151

Ginza Sanwa Bldg.

151

0

Science Plaza - Yonbancho Plaza

-56

-56

0

Shibadaimon Center Bldg.

848

0

848

Tokyo Square Garden

-509

-736

227

Otemachi Financial City North Tower

100

0

100

JPR Yokohama Nihon Odori Bldg.

-74

-149

74

Shinyokohama 2nd Center Bldg.

63

-525

588

Kawaguchi Center Bldg.

-125

-899

773

JPR Ueno East Bldg.

0

-291

291

Tachikawa Business Center Bldg.

-110

-448

337

Rise Arena Bldg.

-2,850-6,023

3,173

Olinas Tower

0

-367

367

JPR Yokohama Bldg.

84

-84

169

Sencity Bldg.

-265

-314

Kawasaki Dice Bldg.

-286-1,839Niigata Ekinan Center Bldg.

-78

-78

0

Tokyo Tatemono Honmachi Bldg.

0

-50

50

JPR Hakata Bldg.

-314

-361

47

JPR Naha Bldg.

81

0

81

Sompo Japan Sendai Bldg.

16

-10

26

Sompo Japan Wakayama Bldg.

-245

-245

0

Tenjin 121 Bldg.

-59

-59

0

Yakuin Business Garden-1,310-1,3100

Downscaling
Cost reduction

4%

68%

Move-outs
47

0

-997

building

Consolidation
19%

9%

JPR Crest Takebashi Bldg.

0

Eviction, etc.

New

101

0

■ Reasons for move-ins and move-outs

Downscaling Cost

-589

MS Shibaura Bldg.

-286-18,282-487

Oval Court Ohsaki Mark West-1,911-1,839Move-ins

Move-outs

Shin-Kojimachi Bldg.

（㎡）

49
1,553

36

4. Appendix

Yields (as of June 30, 2021)■ Yields by Area and by Asset Class(based on book value)

Central Tokyo(NOI yield)（%）

10■ NOI Yield by Property (based on book value)

Circle size = portfolio asset size (book value)
Center of circle = NOI yield

Officeproperties inCentral Tokyo

OfficeOfficeproperties in properties inGreater Tokyo Other Cities

6.5%

6.9%

4.3%

Kanematsu Bldg.
Kanematsu Bldg. Annex

Retailproperties

JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

4.9%

Portfolio average
5.1%

MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Tower0

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

(After-depreciation yield)（%）

10

Shinagawa Canal Bldg.
Rokubancho Bldg.

Circle size = portfolio asset size (book value)
Center of circle = after-depreciation yield

JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

OfficeOfficeOfficeproperties inproperties in Greater Tokyo properties in
RetailCentral Tokyo
Other Cities properties

5

4.9%

5.1%

Ginza Sanwa Bldg.
The Otemachi Tower
Science Plaza-Yonbancho Plaza
Shibadaimon Center Building

4.2%

Tokyo Square Garden
JPR Kojimachi Bldg.

3.6%

0

Portfolio average
4.1%

（%）

（%）

0

JPR Crest Takebashi Bldg.

5

Greater Tokyo and Other Cities

Otemachi Financial City North…
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
JPR Ginza Namiki-dori Building
FUNDS Suidobashi
Average of Central Tokyo

5

10

0

15

*1. The NOI yield of Rise Arena Bldg. is -0.1％.

10

JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.

*1

15

7.0
7.4
7.8
9.0
8.8
8.7
6.9

Arca East Bldg.

4.4
7.1
5.8
6.4
5.2
6.7
6.4
4.2
8.0
4.7
5.2
8.3
3.5
2.9
5.5
5.3
4.5
6.5
3.0
3.1
3.6
5.2
5.5
3.2
4.6
2.5
4.9
2.9
3.5
3.1
3.1
2.2
4.2

5

Rise Arena Bldg.

Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg.
Omiya Prime East
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Average of Greater Tokyo

7.5
6.2
5.9
8.6
6.4
9.6
9.5
4.4
6.3
5.4
3.9
6.4
11.0

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.

2.5

8.8
9.4

JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.

5.5

8.7
7.1

Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi WestJPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

3.4
4.7
4.5

11.2
11.5

8.8

6.5
4.9
6.2

37

4. Appendix

Occupancy Rate and Rent

■ Change in Occupancy Rate and Rents
Jun. 2018(33rd period)

Dec. 2018(34th period)

Jun. 2019(35th period)

Dec. 2019(36th period)

Jun. 2020(37th period)

Dec. 2020(38th period)

Jun. 2021(39th period)

Occupancy rate based on concluded
contracts (period average),%Occupancy rate based on generated
rents (period average),%

97.6

98.8

98.8

99.2

99.4

99.1

97.7

95.8

97.8

98.1

98.3

99.3

98.7

96.5

Average rent (entire area), yen

17,85917,98018,177

18,47718,801

18,977

19,166

Average rent (central Tokyo), yen

20,882

21,053

21,45921,83322,18322,31322,451

Average rent (greater Tokyo), yen

17,134

17,233

17,24017,403

18,13918,196

18,217

Average rent (other cities), yen

13,032

13,14913,375

13,562

13,72013,912

14,067

Gap in rent（%）

-3.2

-4.1

-5.1

-6.9

-4.8

-3.2

-0.6

Occupancy rate based on concluded
contracts (period average),%Occupancy rate based on generated
rents (period average),%

99.4

99.9

99.9

100.0

100.0

100.0

99.3

99.2

99.4

99.8

99.9

100.0

100.0

99.2

RetailOfficeItem■ Status of Rent revision, Rent Through Tenant Replacement
and Contribution Rate (Jun. ‘21)
Item
Rent revision subtotal
Upward revision of rent

Number ofcontracts

Area(thousand㎡)■ Leased Area by Rent Level/Ratio of Contracts
with Upward Rent Revision (Contracts renewed Jun. ’21 period)（%）(million yen)

Increase/
Decrease
Ratio (%)

Area ratio Increase/
Decrease

244

117.9

91.0

+13.8

＋2.0

65

58.6

45.3

+16.1

Item

Area
(thousand㎡)

Area ratio（%）

Ratio ofcontractswith upwardrevision（%）

Less than market rent

42.0

52.8

32.1

＋4.4

Within market rent

18.0

22.7

31.3

Market rent more

19.4

24.4

15.5

Downward revision of
rent
Neither upward or
downward revision ofrent
Tenant replacement
subtotal

3

2.6

2.0

-2.2

-10.9

176

56.6

43.7

-

-

■ Leased Area by Rent Level

37

11.6

9.0

+2.8

+3.8

Item

Increase throughtenant replacement

28

7.6

5.9

+6.6

+13.0

Less than market rent

76.0

29.2

Decrease throughtenant replacements

9

4.0

3.1

-3.8

-16.6

Within market rent

79.8

30.7

Total (Rent revision +Tenant replacement)

281

129.6

100.0

＋16.7

＋2.1

Market rent more

104.4

40.1

(Contracts renewed Dec. ‘21 period - Jun. ’23 period)

Area(thousand ㎡)

Area ratio (%)

38

4. Appendix

Value Enhancing Construction Work

Pursuing electricity savings by switching to LED lighting
Strengthening competitiveness of properties through value enhancing
construction work aimed at improving tenant satisfaction■ Construction work to enhance value of JPR Yokohama Bldg.

■ Progress of switch to LED• Used non-operating hours of tenants and move-in/move-out construction
work as opportunity to switch to LED lighting
Exclusively owned
areas

Common areas（Corridors）（Toilets and hot watersupply rooms）

Rate of progress

43.6%

90.5%

88.1%

Change fromprevious period(+4.7pt)(+6.7pt)(+1.0pt)• Completed complete refurbishment of aging building, including its
exterior walls, to enhance JPR’s brand image• Installed wooden decking (rooftop) for users to relax onExterior view

1. Lighting classed as tenant assets is excluded from the calculation of rate of progress.

■ Value enhancing construction work at Kanematsu Bldg.
• In the tenant satisfaction survey, requests about toilets were common
and were dealt with as appropriate through consultation with the PM.
• Focusing on improving the comfort of toilets to meet the needs offemale workers.
Powder room

Toilet cubicles

Created a changing/hairstylingcorner in response to requests fromfemale workers. Installed mirrors
with LED lights and lockers.

Installed fitting boards in ladies’
toilet cubicles to facilitate changing.

Entrance

Wooden decking (rooftop)
Created a relaxation space out ofconsideration for the health andcomfort of office workers.

39

4. Appendix

Appraisal Value (as of June 30, 2021)

Unrealized gains grew due to increase in appraisal value
Unrealized gains and ratio of unrealized gains remained at a high level
Status of Change in Appraisal Value

Appraisal Value and Unrealized Gains
Appraisal Value

Unrealized Gains

549.3 billion yen

110.1 billion yen(up 1.9 billion yen from38th period (Dec. ‘20))(up 2.6 billion yen from38th period (Dec. ‘20))

Ratio of unrealized gains➢ Cap rates were mostly unchanged.
Cash flow improved for some properties due to the revaluation of property tax（Appraisal Value）(number of property) （Direct Cap Rate）(number of property)

25.1%(up 0.6pt from 38th period(Dec. ‘20))

1. Impact of sold properties is not included in calculation of change from previous period.

Changes in unrealized gains and losses

Dec. ‘20

Jun. ‘21

Lowering

0

0

14

Same

65

63

14

Rising1

2

Dec. ‘20

Jun. ‘21

Increase

34

37

Same

20

Decrease

12

Unrealized gains and losses (left axis)(100 mn. yen)（%）

Ratio of unrealized gains and losses (right axis)

110.1 billion yen

1,200

30

1,000

25.1%

800

20

600
400

10

200
0

0

-200
-400

Jun. '02

Jun. ‘03

Jun. '05

Jun. '07

Jun. '09

Jun. '11

Jun. '13

Jun. '15

Jun. '17

Jun. '19-10
Jun. ’21(period)40

4. Appendix

Appraisal Value by Property (as of June 30, 2021)

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income
approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate thatserve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.
3. Calculated change in period-on-period doesn't include JPR Hakata Bldg. which is sold in the Jun. ‘21 fiscal period.

41

JPR’s Commitment to Sustainability

4. Appendix

Aiming to improve the quality of initiatives and disclosures through thedevelopment of a sustainability promotion framework■ Overview of activities to promote sustainability■ Sustainability Promotion Framework• The Sustainability Committee is chaired by the President & CEO and made up of
managerial personnel.
• The Sustainability Committee is convened 4 times a year, in principle, anddetails of key initiatives are reported to JPR’s Board of Directors and TRIM’s
Board of Directors.
• The Sustainability Secretariat is established as a subordinate organization of the
Sustainability Committee and Working Groups have also been established asorganizations tackling each material issue.
• An organization dedicated to sustainability (Sustainability Promotion Group) has
been established focus on running the Sustainability Committee.

Sustainability Policy/Strategy

Corporatephilosophy

Sustainability
PolicyMaterialities

Medium-tolong-term
strategic
targets
Activities implemented
based on medium-tolong-term targets

Sustainability Committee PDCA

Diagram of Sustainability Framework
Board of Directors
ESG-related
targets

Sustainability Committee Members:
President (chair) and GMs of divisions
and offices

Deliberation

Sustainability Promotion Group
WorkingGroup
LeaderWorkingGroup
LeaderWorkingGroup
LeaderWorkingGroup

WorkingGroup

WorkingGroup

Generaloperation/
coordination

Implementation/
Reporting/
Proposals

Evaluation of
ESG activities

Reflection intargets forfollowing year

PDCA implemented in business of each BU
Preparation ofbusiness plan

Sustainability Secretariat

Monitoring

Implementationof each BU’s
plan

Evaluation ofachievementsof each BU■ Active disclosure of sustainability information• Periodic issuance ofSustainability Report• Creation of ESG page on JPR
website• Disclosure of quantitative
information such asenvironment-related data andTRIM employee data

42

Environment

4. Appendix

Building a greener portfolio by gradually switching to 100% renewable power
through RE100■ Acquisition of environmental certification■ Reduction of CO2 emissions in 2020
Implementation of energy-saving construction and improvement of emissions factor(by changing energy supplier) proved effective

50,000-2,89348,000-2,80246,000+1,995Total
emissions
-7.4％

80

40
46,83346,02544,03153.4

60

49,72642,00040,000（％）

100(t-CO2)44,000

Aim to achieve 2030 target (certification acquisition rate 80%) ahead of schedule

54.4

65.5

34.0

20

44,03002019 result

2019年
実績

Energy-saving
construction/
省エネ工事/
Impact of
COVID-19
コロナ影響

Improvementof emissions
排出係数
factor

Propertyacquisitions,
etc.
物件取得他

改善

'30

Dec. ‘18 Jun. ‘19 Dec. ’19 Jun. ‘20 Dec. ‘20 Jun. ‘212020 result

2020年(month/year)【CASBEE Real Estate Certification】

実績■ Progress towards 2030 target• Aim to achieve 2030 target（30% reduction in CO2 emissions intensity）ahead ofschedule• Began adoption of 100% renewable power through RE100 in 2021 and plan toadopt at 22 properties in 2022★★★★★

11 properties★★★★

10 properties★★★

1 property【DBJ Green Building Certification】

(%)

110
100

60.1

80.0

71.4

Use of LED/
More efficient
operation

100.0
89.5

90

Adoption of 100%
renewable power
through RE100

Improvement of CO
２ emissions factor

87.7
81.2

80

70.0

77.7

70

【BELS Certification】

72.4

60

70.0

★★★★★

2 properties★★★★

3 properties★★★

7 properties★★

2 properties★★★

1 property★★

1 property

50
2017

2018

2019

2020

LED、

排出係数

再エネ

2030 （year）

1.

Properties with environmental certification are as of the end of Jun. 2021.

43

4. Appendix

Society

Contributing to the resolution of societal issues through dialogue with stakeholders■ Regular tenant satisfaction surveys and scheme for improvement••• As a member of the Tokyo Tatemono Group, TRIM established a “Human
Rights Policy” based on the UN Guiding Principles on Business and Human
Rights• Sustainability Procurement Standards were established due to the need toincorporate sustainable procurement across the entire supply chain

Efforts were made to respond quickly to feedback from tenants and PM
Communication was strengthened to make improvements in response torequests from tenants（number of property）

Number of buildings surveyed (Left axis)
Overall satisfaction (right axis)■ Measures to strengthen respect for human rights（score）

75

4.0

3.1

50

3.2 3.2 3.2

3.3

3.2

3.3 3.3

3.4 3.4 3.4

3.5 3.5
3.3

3.4 3.4

3.5
3.0

25

31 32 31 32 32 36 37 37

00

38 41 39 40 40

45 42 40

2.5
0
2.0

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '21■ COVID-19 infection prevention measures by TRIM
• Provision of workplace vaccinations to help central
and local governments improve vaccination rate
• Daily health check• Encouragement of staggered commuting,telecommuting and web meetings (loan of PCs andmonitors)• Distribution of masks, provision of disinfectant
solution and enforcement of social distancing• Installation of acrylic partitions (meeting rooms)※ The 2020 CS Survey was cancelled due to the effects of the COVID-19 pandemic.
[Overview of the 2021 CS survey]
Average value with 4 points being the highest
Survey period: May-Jun. 2021
Surveyed building: 40 building with 432 tenant
Questionnaire item: management and administration, responses to tenants, crime prevention
and safety, emergency responses and environmental preservation, etc.

（Inspection Flow Chart for CS）
Tenant satisfaction survey
and inspection

TRIM brand study session

Conduct periodical questionnaires

Verify the questionnaire results andcheck how popular the brand has
becomeImprovement of
Periodical liaison meeting
management issues
Improve problematic situations in
Clarify managerial issues andcooperation with property managers
discuss countermeasures among theand building managers of respective
AM, PM and BM
properties■ Activities to support local bars and restaurants• The Tokyo Tatemono Group has consistently purchased takeouts and bentos
from bars and restaurants in the Yaesu, Nihonbashi and Kyobashi areas
which have been affected by the COVID-19 pandemic as a means ofsupporting them
• The Group uses local bars and restaurants as a means of procuring lunches
for employees whilst minimizes the risk of infection• TRIM supports the activities of the Tokyo Tatemono Group and actively takes
part in group activities including partially subsidizing employee expenses

44

4. Appendix

Governance

Focusing on further ensuring sound management as a trusted investment
corporation/company■ JPR’s Corporate Governance■ TRIM’s Corporate GovernanceCriteria for appointing investment corporation officers andRemuneration etc.

Decision-making process for property acquisitions• None of the grounds for disqualification stipulated in the laws concerning investment trusts
and investment corporations• The remuneration for executive officers and supervising officers is stipulated in theinvestment corporation regulations as the amount decided by the Board of Directors (up to a
maximum of 500,000 yen per month for executive officer and 400,000 yen per month foreach supervising officer).

Management fee 1(Asset-linked fee)Management fee 2(Revenue-linked fee)Management fee 3(Cash distribution-linked fee)

Calculation of Compensation

Remuneration（Jun. ’21）

Share

Total acquisition price×0.05％

233 million yen

29.1%

Total revenue×1.2%

199 million yen

24.8%

Distributable base amount
×3.8%×Rate of fluctuation of
distributable base amount perunit

355 million yen

44.4%

Property value×0.5%

13 million yen

1.7%

Acquisition

Item

’

Concludeagreement

Employing a management fee system linked to unitholders’ interests

TRIM s Board of
Directors

Asset Management Fee

Decision making
on acquisition
over certain
amountSupervising officers may be directors of corporations other than those indicated above, buthave no conflict of interest with JPR at those and the above positions. Candidates are
expected to be appointed by resolution of the General Meeting of Unitholders on
September 7, 2021.

’

Investment Subcommittee(dandidate of appointment)•

Professor, Graduate School of Horticulture,
Chiba University

Final decision on
acquisition

Konomi Ikebe

Due diligence
subcommittee【Plan to increase the number of supervising officers to strengthen theoversight function including sustainability initiatives) 】

Compliance Committee
JPR s Board of
Directors

Group Representative Partner of Gyosei Certified
Public Tax & Accountants' Co.
Representative Partner of Nobuhisa Kusanagi
OfficePrior review /approval oftransaction withrelated parties

Nobuhisa Kusanagi

Due diligence

Partner Attorney, Spring Partners

Investment subcommittee

Masato Denawa

Decision on
acquisition policy

President and CEO
Tokyo Realty Investment Management, Inc.

Compliance subcommittee

Yoshihiro Jozaki

Review,screening

Executive
OfficerSupervising
OfficerCurrent Assignment

Invest management
department

Name

Proposal,planning

Position

The following procedures are taken for cases of transactions with interested parties:• An outside attorney is appointed as a special member of the Compliance Committee andexamines and verifies the adequacy and rationality of transactions at the Committee.
• Upon implementing the approved transactions, approval by JPR’s board of directors,
comprising directors who are independent from the shareholders of TRIM, must be obtainedin advance.

Decision-making based on stringent processes(Interested parties: Sponsors companies and their parent company es,
subsidiaries and affiliates)• Acquisition of properties or assets from interested parties• Sale of properties or assets to interested parties• Consignment of property management to interested parties• Brokerage or agency by interested parties for transactions• Placement of orders for construction works (costing over 10 million yen)
to interested parties• Leasing of properties to interested parties

Management fees 4/5(Acquisition/Merger fee)
(Sale fee)45

4. Appendix

Unitholders (as of June 30, 2021)■ Number of Units by Unitholder Type■ Top Unitholders(958,250 units in total)

Securities
companies
46,464
5%

Individuals
33,582
3%
4%

Rank

Foreign

16%
Other domestic
corporation
82,776
9%

Financial
institutions
641,491
67%
Of which, investment
Trusts incorporating
JPR units352,934
37%■ Number of Unitholders by Unitholder Type

Share
(%)

1

Custody Bank of Japan, Ltd. (Trust Account)

244,685

25.5

2

The Master Trust Bank of Japan, Ltd.
(Trust Account)

160,193

16.7

3

The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)

37,472

3.9

4Tokyo Tatemono Co., Ltd.

29,300

3.1

5Kawasaki Gakuen

25,000

2.6

6

Custody Bank of Japan, Ltd.
(Securities Investment Trust Account)

24,478

2.6

7

Meiji Yasuda Life Insurance Company

24,0002.5

8JPMorgan Securities Japan Co., Ltd.

14,3501.5

9SSBTC CLIENT OMNIBUS ACCOUNT

13,398

1.4

10

Custody Bank of Japan, Ltd. (Trust Account 7)

12,602

1.3

585,478

61.1(10,531 unitholders in total)

Financial
institutions
177
2%

Number of
Owned
Units

investors
153,937

Other
domestic
corporation
218
2%

Name

Foreigninvestors
297
3%

Securities
companies
27
0%

Individuals
9,812
93%

Total

46

4. Appendix

Investment Unit Price and Distribution per Unit

■Changes in Unit Price
日経平均株価(指数化)
Nikkei stock average (indexation)

JPR

(yen)

600,000

400,000

200,000

0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6

(year/'21/6 month)■Changes in JPR Dividend Yield(%)

10y JGB yield
10年国債利回り

JPR

10.0
8.0
6.0
4.0
2.0
0.0
-2.0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6

(year/'21/6 month)
120 .0■Changes in cash distribution per unit
(yen)

6,912 6,873
5,738

6,081

6,671 6,370 6,411 6,509 6,873 6,996 6,671

110 .0100 .07,122 7,092

6,933 6,770
5,680 5,611 5,876

6,430

6,093 6,031 6,006 6,150 6,351 6,419

7,048
6,588 6,756

7,213 7,223 7,245 7,326 7,380

7,493 7,595 7,750 7,657

90.0

80.0

70.0

60.0

3,731

50.0

40.0

2,545

30.0

20.0

10.0

0

0.0

1

2
'02

3

4
'03

5

6
'04

7

8
'05

9

10
'06

11

12
'07

13

14
'08

15

16
'09

17

18
'10

19

20
'11

1. Prepared by TRIM based on Refinitiv (Thomson Reuters) data.
2. Nikkei stock average (indexation) in Changes in Unit Price is calculated on the basis that June 14, 2002 = 200,000 yen.
3. JPR dividend yield is calculated by dividing the sum of dividend for the last two periods by daily unit price.

21

22
'12

23

24
'13

25

26
'14

27

28
'15

29

30
'16

31

32
'17

33

34
'18

35

36
'19

37

38
'20

39

(period)'21(year)

47

4. Appendix

Asset Manager■Summary of Asset Manager■Sponsors（as of June 30, 2021）（as of June 30, 2021）

Shareholding
ratio

No. of seconded
staff fromsponsors

Tokyo Tatemono

75%

8

Yasuda Real Estate

10%－

Yoshihiro Jozaki

Taisei Corporation

10%－

Directors

7 (3 full-time and 4 part-time)

Meiji Yasuda Life Insurance5%－

Number of Officers

44

Name

Tokyo Realty Investment Management, Inc. (TRIM)

Address

4-16 Yaesu 1-Chome, Chuo-ku, Tokyo

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO■Organization Chart（as of June 30, 2021）

Name■Sponsors Support

Shareholder’s Meeting
Auditors

No.

Board of Directors
President & CEO

Compliance OfficeFinancial Division

Personnel support through dispatching personnel to TRIM and othermeasures2

Provision of know-how on real estate management in general, including
tenant leasing and technical support

3

Supply of properties and provision on information on property acquisition

4

Fund procurement support including funding through debt financeCorporate Planning /Administration Division

Research Grp.

Financial Grp.

Planning Grp.

Investment Grp.

IR Grp.

General Administration Grp.

Asset Management 1Grp.

Sustainability Grp.

Fund Management andAccounting Grp.

Asset Management 2Grp.

1
Compliance Committee

Investment Committee

Investment Management Division

Summary of sponsor’s support

Asset Management 3Grp.

Asset Engineering Grp.

48

4. Appendix

Office Property Leasing Market■ Changes in the supply and the vacancy rate of Tokyo CBDs

■ Changes in the average rent of Tokyo CBDs
(yen/tsubo)

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,000

SupplyVacany rate(%)
9.5

(tsubo)35,00025,000600,000
8.5

500,000

7.5

15,0005,000
Jun. '07 Jun. '09 Jun. '11 Jun. '13 Jun. '15 Jun. '17 Jun. '19 Jun. '21 (month/
year)

6.5
400,000

1．Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and
NLI Research Institute.
2．Please refer to glossary for definition of building classes.

5.5■ Changes in the vacancy rate of Tokyo CBDs
300,000

4.5

12%
3.5
200,000

2.5

Class A Bldg.

Class B Bldg.

Class C Bldg.

10%
8%
6%

100,000
1.5

4%
2%

0

0.5
(year)

1. Prepared by TRIM based on the office market information published by Miki Shoji Co., Ltd.

0%(month/Jun. '07 Jun. '09 Jun. '11 Jun. '13 Jun. '15 Jun. '17 Jun. '19 Jun. '21 year)
1．Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and
NLI Research Institute.
2．Please refer to glossary for definition of building classes.

49

4. Appendix

For-Sale Property Market■ Expected Cap Rate of Retail Properties andEconomy Hotel for Lodging■ Expected Cap Rate of Office (major cities)
Tokyo (Otemachi, Marunouchi)

Nagoya (around Nagoya Sta.)

Osaka (Midosuji)

Osaka (Umeda)

Retail property (Ginza)

Retail property (Osaka)

Economy hotel for lodging (Tokyo)

Economy hotel for lodging (Osaka)

Fukuoka (Tenjin)
(%)

(%)

8.0

7.5

7.0
6.5
6.0
5.5
5.0
4.5
4.0

3.5

3.0

(month/year)
1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute.

Apr '21

Apr '20

Apr '19

Apr '18

Apr '17

Apr '16

Apr '15

Apr '14

Apr '13

Apr '12

Apr '11

Apr '10

Apr '09

Apr '08

Apr '07

Apr '06

Apr '21

Apr '20

Apr '19

Apr '18

Apr '17

Apr '16

Apr '15

Apr '14

Apr '13

Apr '12

Apr '11

Apr '10

Apr '09

Apr '08

Apr '070
2.0

Apr '062.50(month/year)50

4. Appendix

Portfolio Map

Chuo, Minato, Shinjuku, Shinagawa■Central Tokyo Chiyoda,
and Shibuya Wards

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

SaitamaMusashiurawa
Prefecture

A-5

A-9
A-24
A-4

A-23

B-6

Chiyoda WardTokyo
A-21

A-2

A-26

B-8
A-13

Tachikawa

A-5

Harajuku

B-7

B-1
A-1

B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

Minato Ward

A-1

Kinshicho

B-14

Chiba
B-2

B-4

KawasakiA-25
B-5

Hamamatsucho

A-15

B-1

Musashikosugi

Chuo Ward

ShibuyaB-7

B-11

ShinagawaA-6

Shinbashi
A-18

Chiba
Prefecture

B-3

Kawaguchi

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

All other areas of Tokyo, Chiba, Kanagawa
and Saitama Prefectures

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

Kanagawa Shin-Yokohama
Prefecture
Yokohama
B-12
B-3

TamachiB-10

Kamioka

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

A-6■Other Cities
GotandaA-7

Shinagawa
C-4

A-16
A-10

OhsakiShinagawa Ward
A-1

Tokyo Tatemono Honmachi Bldg.

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi WestC-1

JPR Umeda Loft Bldg.

C-5

JPR Chayamachi Bldg.

Kanematsu Bldg.

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

A-2

Kanematsu Bldg. Annex

A-14

Shinjuku Center Bldg.

A-25

Shibadaimon Center Bldg.

A-3

JPR Ningyo-cho Bldg.

A-15

Minami Azabu Bldg.

A-26

Tokyo Square Garden

A-4

Shin-Kojimachi Bldg.

A-16

Shinagawa Canal Bldg.

A-27

JPR Kojimachi Bldg.

C-14

Tenjin 121 Bldg.

A-5

JPR Crest Takebashi Bldg.

A-17

Rokubancho Bldg.

A-28

Otemachi Financial City North Tower

C-20

Yakuin Business Garden

A-6

MS Shibaura Bldg.

A-18

JPR Harajuku Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-7

Gotanda First Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-3

JPR Jingumae 432

A-9

JPR Ichigaya Bldg.

A-21

JPR Sendagaya Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-10

Oval Court Ohsaki Mark West

A-22

Ginza Sanwa Bldg.

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-11

Shinjuku Square Tower

A-23

The Otemachi Tower

A-6

JPR Ginza Namiki-dori Bldg.

A-12

BYGS Shinjuku Bldg.

A-7

FUNDES Suidobashi(Land with Leasehold Interest)

Sendai
Niigata

Kobe
Fukuoka

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

51

4. Appendix
A-1
Kanematsu Bldg.

Portfolio List（Central Tokyo）
A-2
Kanematsu Bldg. Annex

A-3
JPR Ningyo-cho Bldg.

A-4
Shin-Kojimachi Bldg.

A-5
JPR Crest Takebashi Bldg.

A-6

A-7

MS Shibaura Bldg.

Gotanda First Bldg.

The exteriorof a building

Acquisition Price

16,276 million yen

2,874 million yen

2,100 million yen

2,420 million yen

4,000 million yen

11,200 million yen

2,920 million yen

Total Floor Space*

14,995㎡

4,351㎡

4,117㎡

5,152㎡

4,790㎡

31,020㎡

10,553㎡

Period-end
occupancy rate

100.0％

100.0％

100.0％

85.3％

100.0％

100.0％

100.0％

Kyobashi, Chuo-ku

Kyobashi, Chuo-ku

Nihonbashiningyocho, Chuo-ku

Kojimachi, Chiyoda-ku

Kandanishikicho, Chiyoda-ku

Shibaura, Minato-ku

Nishigotanda, Shinagawa-ku

Acquisition Date

2001.122001.122001.11‘01.11/’02.11/’04.11

2002.6

2003.3

2003.7

Completed1993.2

1993.2

1989.12

1984.10

1999.91988.2

1989.7Address

A-９
JPR Ichigaya Bldg.

A-10

A-11

Oval Court Ohsaki MarkWest

Shinjuku Square Tower

A-12
BYGS Shinjuku Bldg.

A-13
Across Shinkawa Bldg.
Annex

A-14
Shinjuku Center Bldg.

A-15
Minami Azabu Bldg.

The exteriorof a building

Acquisition Price

5,100 million yen

3,500 million yen

Total Floor Space*

5,888㎡

28,575㎡

Period-end
occupancy rate

100.0％

100.0％

Kudanminami, Chiyoda-ku

Acquisition Date

Completed

Address

14,966 million yen

15,121 million yen

710 million yen

21,000 million yen

3,760 million yen

78,796㎡

25,733㎡

5,535㎡

176,607㎡

4,570㎡

100.0％

96.9％

77.1％

94.4％

100.0％

Higashigotanda, Shinagawa-ku

Nishishinjuku, Shinjuku-ku

Shinjuku, Shinjuku-ku

Shinkawa, Chuo-ku

Nishishinjuku, Shinjuku-ku

Minamiazabu, Minato-ku

2004.5

2004.6‘04.7/’08.9/’15.3/’15.10‘04.11/’05.4/’10.7

2004.112008.32008.7

1989.3

2001.6

1994.10

1985.4

1994.6

1979.10

1992.6(entire redevelopment area)* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

52

4. Appendix
A-16
Shinagawa Canal Bldg.

Portfolio List（Central Tokyo）
A-17
Rokubancho Bldg.

A-18
JPR Harajuku Bldg.

A-20
JPR Nihonbashi-horidome
Bldg.

A-21
JPR Sendagaya Bldg.

A-22
Ginza Sanwa Bldg.

A-23 The Otemachi
Tower (Land with
Leasehold Interest)

The exteriorof a building

Acquisition Price

2,041 million yen

2,800 million yen

8,400 million yen

5,100 million yen

15,050 million yen

3,400 million yen

36,000 million yen

Total Floor Space*

5,216㎡

4,205㎡

6,466㎡

7,190㎡

7,683㎡

8,851㎡

11,034㎡(ground area)

Period-end
occupancy rate

90.8％

100.0％

88.5％

100.0％

100.0％

100.0％

100.0％

Konan, Minato-ku

Rokubancho, Chiyoda-ku

Jingumae, Shibuya-ku

Nihonbashihoridomecho, Chuo-ku

Sendagaya, Shibuya-ku

Ginza, Chuo-ku

Otemachi, Chiyoda-ku

Acquisition Date

‘08.12/’19.3

2009.122009.122010.32010.52011.82012.3Completed2008.7

1991.10

1989.3

2002.62009.5

1982.102014.4(reference)

A-24

A-25

Science Plaza - Yonbancho
Plaza

Shibadaimon Center Bldg.

A-26
Tokyo Square Garden

A-27
JPR Kojimachi Bldg.

Address

A-28
Otemachi Financial City
North Tower

The exteriorof a building

Acquisition Price

2,660 million yen

4,220 million yen

18,400 million yen

5,750 million yen

11,400 million yen

Total Floor Space*

24,560㎡

11,419㎡

112,645㎡

4,438㎡

239,769.07㎡

98.3％

100.0％

91.5％

100.0％

100.0%

Yonbancho, Chiyoda-ku

Shibadaimon, Minato-ku

Kyobashi, Chuo-ku

Kojimachi, Chiyoda-ku

Otemachi, Chiyoda-ku

Acquisition Date2013.12’13.12/’14.7‘17.2/’17.4

2019.62020.12Completed1995.2

1993.72013.2

1999.2

2012.10Period-end
occupancy rate

Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

53

4. Appendix
A-1
JPR Shibuya Tower
Records Bldg.

Portfolio List（ Central Tokyo, Greater Tokyo ）A-3
JPR Jingumae 432

A-4

A-5 (Yurakucho Itocia)

A-6

Shinjuku Sanchome East
Bldg.

Yurakucho Ekimae
Building

JPR Ginza Namiki-dori
Bldg.

A-7
FUNDES Suidobashi

The exteriorof a building

Acquisition Price

12,000 million yen

4,275 million yen

2,740 million yen

3,400 million yen

10,100 million yen

3,250 million yen

Total Floor Space*

8,449㎡

1,066㎡

24,617㎡

71,957㎡

1,821㎡

1,477㎡

Period-end
occupancy rate

100.0％

100.0％

100.0％

100.0％

100.0％

87.2％

Jinnan, Shibuya-ku

Jingumae, Shibuya-ku

Shinjuku, Shinjuku-ku

Yurakucho, Chiyoda-ku

Ginza, Chuo-ku

Kandamisakicho, Chiyoda-ku

Acquisition Date

2003.6

2006.3‘07.3/’08.4

2008.82016.122016.12Completed1992.2

2006.2

2007.1

2007.10

2008.62015.7Address

B-1
Arca East

B-2
JPR Chiba Bldg.

B-3

B-5

B-6

JPR Yokohama Nihon
Odori Bldg.

Shinyokohama 2nd Center
Bldg.

Kawaguchi Center Bldg.

B-7
JPR Ueno East Bldg.

B-8
Tachikawa BusinessCenter Bldg.

The exteriorof a building

Acquisition Price

5,880 million yen

2,350 million yen

2,927 million yen

1,490 million yen

8,100 million yen

3,250 million yen

3,188 million yen

Total Floor Space*

34,281㎡

9,072㎡

9,146㎡

7,781㎡

28,420㎡

8,490㎡

14,706㎡

Period-end
occupancy rate

100.0％

97.6％

98.8％

98.1％

99.2％

100.0％

97.6％

Kinshi, Sumida-ku

Chiba, Chiba

Yokohama, Kanagawa

Yokohama, Kanagawa

Kawaguchi, Saitama

Matsugaya, Taito-ku

Tachikawa, Tokyo

Acquisition Date

2001.112001.122001.11‘02.9/’13.3

2004.2

2004.3‘05.9/’07.2

Completed1997.3

1991.1

1989.10

1991.8

1994.2

1992.10

1994.12Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

54

4. Appendix
B-9
Rise Arena Bldg.

Portfolio List（Greater Tokyo）
B-10
Yume-ooka Office Tower

B-11
Olinas Tower

B-12
JPR Yokohama Bldg.

B-13
Omiya Prime East

B-14
Sencity Bldg.

The exteriorof a building

Acquisition Price

5,831 million yen

6,510 million yen

31,300 million yen

7,000 million yen

6,090 million yen

13,870 million yen

Total Floor Space*

91,280㎡

185,974㎡

257,842㎡

8,772㎡

9,203㎡

158,663㎡

52.7％

100.0％

100.0％

100.0％

100.0％

98.0％

Higashiikebukuro, Toshima-ku

Yokohama, Kanagawa

Taihei, Sumida-ku

Yokohama, Kanagawa

Saitama, Saitama

Chiba, Chiba

Acquisition Date

2007.32007.72009.6

2010.122013.32020.3Completed2007.1

1997.32006.2

1981.52009.2

1993.4

Period-end
occupancy rate

Address

B-1
Tanashi ASTA

B-3
Cupo-la Main Bldg.

B-4

B-5

JPR Musashikosugi Bldg.

Musashiurawa Shopping
SquareB-6
Kawasaki Dice Bldg.

B-7
FUNDES Ueno

The exteriorof a building

Acquisition Price

10,200 million yen

2,100 million yen

7,254 million yen

4,335 million yen

15,080 million yen

3,800 million yen

Total Floor Space*

80,675㎡

48,321㎡

18,394㎡

28,930㎡

36,902㎡

2,235㎡

Period-end
occupancy rate

100.0％

100.0％

100.0％

100.0％

97.8％

100.0％

Nishitokyo, Tokyo

Kawaguchi, Saitama

Kawasaki, Kanagawa

Saitama, Saitama

Kawasaki, Kanagawa

Ueno, Taito-ku

Acquisition Date

2001.112006.32006.92007.32007.42019.6

Completed1995.2

2006.1

1983.32005.10

2003.82017.7Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

55

4. Appendix

Portfolio List（Other Cities）

C-1

C-4

Niigata Ekinan Center Bldg.

Tokyo Tatemono
Honmachi Bldg.

C-9
JPR Naha Bldg.

C-12

C-13

Sompo Japan Sendai Bldg.

Sompo Japan Wakayama Bldg.

C-14
Tenjin 121 Bldg.

C-17
JPR Dojima Bldg.

The exteriorof a building

Acquisition Price

2,140 million yen

4,150 million yen

1,560 million yen

3,150 million yen

1,670 million yen

2,810 million yen

2,140 million yen

Total Floor Space*

19,950㎡

14,619㎡

5,780㎡

10,783㎡

6,715㎡

8,690㎡

5,696㎡

98.5％

94.3％

100.0％

99.9％

95.0％

98.2％

92.1％

Niigata, Niigata

Osaka, Osaka

Naha, Okinawa

Sendai, Miyagi

Wakayama, Wakayama

Fukuoka, Fukuoka

Osaka, Osaka

Acquisition Date

2001.112001.112001.11

2002.6

2002.6

2002.6

2004.1

Completed1996.3

1970.2

1991.10

1997.12

1996.7

2000.7

1993.10

C-21
JPR Shinsaibashi Bldg.

C-22
JPR Shinsaibashi WestC-1
JPR Umeda Loft Bldg.

Housing Design Center Kobe

C-5
JPR Chayamachi Bldg.

Period-end
occupancy rate

Address

C-19

C-20

JPR Nagoya Fushimi Bldg.

Yakuin Business Garden

C-4

The exteriorof a building

Acquisition Price

4,137 million yen

10,996 million yen

5,430 million yen

3,750 million yen

13,000 million yen

7,220 million yen

6,000 million yen

Total Floor Space*

10,201㎡

22,286㎡

5,303㎡

7,738㎡

17,897㎡

33,877㎡

3,219㎡

99.5％

92.1％

100.0％

99.9％

100.0％

100.0％

100.0％

Nagoya, Aichi

Fukuoka, Fukuoka

Osaka, Osaka

Osaka, Osaka

Osaka, Osaka

Kobe, Hyogo

Osaka, Osaka

Acquisition Date

2005.32012.82005.52020.1‘03.5/’03.7

2005.92006.8Completed1991.32009.1

2003.2

1986.91990.4

1994.6

1994.6

Period-end
occupancy rate

Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

56

4. Appendix

Introduction to the JPR Website https://www.jpr-reit.co.jp/

8955

Having expanded IR information by adding a variety of contents,
JPR provides information in a timely manner
Property Information• [Occupancy Rate]
Occupancy Rate: data for each property (Excel)
updated monthly• [Property Data Library]
Property Data Book, Property Appraisal Summary,
Historical Data
• [Portfolio data]
Asset class, Area, Ratio of Properties by Property
Acquisition Channel, Ratio of Tenant Occupancy• [Video Presentation of Major Properties]

Overview of Property・Access Map• [Property Overview]
Basic Information, Management Status, Major
Characteristics• [Access Map]
Search function for routes from the nearest
stations (applicable for mobile phones)• Other than these, latest topics regarding
management status are posted at any time

Information of ESG
•
•
•
•
•
•

ESG of JPR
Initiatives on behalf of the environment
Initiatives for Society
Corporate Governance Initiatives
Sustainability reportGRI Standards Content Index
Extensive ESG related information
Regularly announce updated data57

Glossary
Term

Term

Meaning

Acquisition price

The sales price (not including acquisition costs, fixed property taxes and consumption taxes) stated in thesales agreement concerning acquisition of a property owned by JPR (hereinafter referred to as the “owned
properties”) or a property to be acquired by JPR.

Asset size

The total acquisition prices of the owned properties.

Investment ratio

The investment ratio refers to the ratio of the acquisition price of relevant properties owned by JPR to thetotal acquisition price of its portfolio.

Occupancy rate /occupancy rate
based on concluded
contracts

Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded contracts.
When occupancy rate for each fiscal period is indicated, it represents the average occupancy rate as of theend of each month that belongs to the relevant fiscal period (period average of occupancy rate at end ofmonth). Furthermore, it may be described as “average occupancy rate” in order to distinguish it from “periodend occupancy rate.”

Occupancy rate
based on generated
rents(Total leased space – total leased space during rent-free periods) / total leasable space

Average unit rent

Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease contracts withtenants; for certain properties, the figure includes common charges, etc. received by master lessees without
being recorded as JPR’s revenue

Rate of rent revision

Meaning
The definitions of building classes used in “Ratio by grade/asset class“ on page 11 is as follows, which TRIM
sets.
Target area: Tokyo’s 23 ward
Class S:
Comprehensive consideration from Bldg. Scale, location, Bldg. age, etc. of the following Class A
Class A:
Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or moreClass B:
Floor size of 200 tsubo or moreClass C:
Floor size of 100 tsubo or more but less than 200 tsubo

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and “Changes inthe vacancy rate of Tokyo CBDs” on page 49 are as follows, which Sanko Estate Co., Ltd. And NLI ResearchInstitute sets.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage of officebuildings in surrounding wards (Gotanda/ Osaki, Kita-shinagawa/ Higashi-shinagawa, Yushima/ Hongo/
Koraku, Meguro-ku)
Class A:
Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age lessthan 15 years
Class B:
Floor size of 200 tsubo or more, not applicable of A class building (including ofbuilding except for A class of age more over 15 years)
Class C:
Floor size of 100 tsubo or more but less than 200 tsubo

NOI yield(Rental revenue - expenses related to rent business + depreciation) / acquisition price (book value ormarket value, depending on the case)
NOI yield is calculated using the above formula, by dividing acquisition price (book value or market value,depending on the case) in the formula by 365 days and multiplying it by the number of business days of
the relevant fiscal period.

After-depreciation
yield(Rental revenue - expenses related to rent business) / book value

Rate of rent revision indicates the sum total of monthly rent after revision minus monthly rent before revision
upon contract renewal with rent revision (including neither upward or down revision of rent ) in each fiscal
period, divided by monthly rent before revision.

Number of tenants

The number of tenants counts the parties with whom JPR has concluded lease contracts for the building
floors. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same
property. If the leased rooms are in multiple buildings, the tenant is counted in plural.

Rate of tenant
replacement

Rate of tenant replacement indicates the sum total of monthly rent after tenant replacement minus monthly
rent before tenant replacement in each fiscal period, divided by monthly rent before tenant replacement.

Ratio of long-term,
fixed interest ratedebts

Long-term interest-bearing debts with fixed interests / total interest-bearing debts

Rent revision

Rent revision indicates the sum total of monthly rent after revision minus monthly rent before revision upon
contract renewal with rent revision in each fiscal period.

Average maturity

Tenant replacement

Tenant replacement indicates the sum total of monthly rent after tenant replacement minus monthly rent
before tenant replacement in each fiscal period.

Weighted average calculated by dividing the remaining periods to the repayment dates and redemption
dates of borrowings and investment corporation bonds at the end of each fiscal period by the balance ofrespective borrowings and investment corporation bonds at the end of each fiscal period
For borrowings with scheduled repayment in installments, the weighted average of the remaining period tothe scheduled repayment dates of each installment payment in accordance with the relevant repayment
amountTarget rent

Target rent refers to the rent level (the highest limit) TRIM sets for each fiscal period as the target for inviting
new tenants and revising rents for existing tenants, and are set at roughly the same level as the highest limitof market rent.

Average debt cost

(Sum total of interest expenses, interest expenses for investment corporation bonds, borrowing-related
expenses (excluding expenses related to early repayment of debts and expenses related to the commitmentline agreement), amortization of investment corporation bond issuance costs and investment corporationbond administration expenses incurred in each fiscal period), divided by the business days of the relevant
fiscal period or the said period, and annualized by multiplying by 365 days / average balance of debts andinvestment corporation bonds for each fiscal period or for the said period

Base rent

Base rent refers to the rent level (the lowest limit) TRIM sets for each fiscal period as the base for inviting new
tenants and revising rents for existing tenants, and are set at roughly the same level as market rent.

LTV

Rent gap

The rent gap for a month refers to, in lease contracts due for renewal during the four periods from the period
ending in December 2021, the ratio obtained by subtracting the total difference between the lower limit ofrent in the market range and the existing rent that is lower than the lower limit of rent in the market range
from the total difference between the upper limit of rent in the market range and the existing rent (excluding
new contracts, etc.) that exceeds the upper limit of rent in the market range and dividing that monthly
difference by the monthly rent for the month in question.

Interest-bearing debts / total assets at end of period (based on book value)
There are other methods for calculating LTV.
LTV (based on valuation) = Interest-bearing debt / (total assets at end of period + unrealized gains orlosses from valuation) (based on market value)
Unrealized gains or losses from valuation refer to the difference between appraisal value and book value.
Based on book value unless otherwise specified.

Ratio of unrealized
gains or losses(Appraisal value – book value) / book value

Cap rate

Capitalization rate by the direct capitalization method
Direct capitalization method is one of the methods to calculate the value estimated by income approach (amethod to estimate the value of the target property by calculating the sum total of present value of the net
operating income which the target property is expected to generate in the future), and capitalizes the net
operating income of a certain period by using the capitalization rate.

Tokyo/ Other cities“Tokyo” defined by JPR as its investment area collectively refers to “Central Tokyo” and “Greater Tokyo” asdefined below, and “Other Cities” refers to other regions.
・Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
・Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama Prefectures58

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking
statements are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty Investment
Management, Inc. (TRIM) based on information currently available, and are therefore not guarantees of future
performance. Actual results may differ materially from those in the forward-looking statements as a result ofvarious factors including known or unknown risks and uncertainties.
• This material is solely for the purpose of providing information, and is not intended for the purpose of offeringor soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.
• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.

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