37th
Report on Operating and Management Results
Thirty-Seventh Fiscal Period Semi-Annual Report
January 1, 2020 – June 30, 2020

Japan Prime Realty Investment Corporation

Sencity Bldg.

Sencity Bldg.

Contents
JPR at a Glance

1

Asset Management Report30

Message to Our Unitholders

2

Financial Statements

52

Account Highlights

3(1) Balance Sheets

52

37th Fiscal Period Topics

4(2) Statements of Income and Retained Earnings

54

Internal Growth Strategy

6(3) Statements of Changes in Unitholders’ Equity

55

External Growth Strategy

7(4) Statements of Cash Distributions

56

Financial Strategy

8(5) Statements of Cash Flows

57

Initiatives on Sustainability

9(6) Notes to Financial Statements

58

Portfolio Status

12(7) Detailed Schedules

68

Overview of Portfolio Properties

14(8) Independent Auditor’s Report

72

Structure and History of JPR

28(9) Other Notes (Information only)74

Overview of Asset Manager

29

Investor Information

75

JPR at a Glance
Japan Prime Realty Investment Corporation (JPR) is a J-REIT with a large-scale combined portfolio that is
focused on office properties in Tokyo (Note). It aims to achieve stable growth of cash distributions, building on
the quality of its properties and solid management operations.
(Note) “Office properties in Tokyo” represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba,
Kanagawa and Saitama Prefectures) (the same applies throughout this report).

Portfolio
JPR has built a large-scale combined portfolio of assets
under the basic policy of making investments focused on
office properties in Tokyo.

No. of Properties and Size

65 properties 457.1 billion yen
Investment Ratio by Area
Tokyo:

84.5% Other Cities: 15.5%
Investment Ratio by Asset Class

Office:(Note) Retail, etc. refers to retail properties and hotels (the same applies throughout this report).

Financial BaseJPR has constructed a financial base under the basic
policy of conservatively controlling LTV and utilizing
long-term, fixed interest rate debts.

77.1%

Retail, etc. (Note):

22.9%

Ratio of Interest-Bearing Debts to Total Assets (LTV)

39.5%
Ratio of Long-Term, Fixed Interest Rate Debts

100.0%
Issuer Rating

AA- (R&I)
Sponsors
JPR makes the best of the comprehensive capabilities in
the real estate, construction and finance areas of the foursponsors led by Tokyo Tatemono together with Yasuda
Real Estate, Taisei Corporation and Meiji Yasuda Life
Insurance (as of June 30, 2020).

(Note) Aggregate value of properties acquired from and based on information provided bysponsors, etc. refers to the aggregate acquisition price of real estate, etc. JPR has acquiredsince its listing either from the sponsors, etc. or based on the information provided by thesponsors, etc., and includes the properties already sold.
Sponsors, etc. represent the four sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment(the same applies throughout this report).

A (S&P)

Aggregate Value of Properties Acquired from andBased on Information Provided by Sponsors, etc.

368.5 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

Yakuin Business Garden

1Message to Our Unitholders

Yoshihiro Jozaki
Executive Officer
Japan Prime Realty Investment Corporation

Dear Unitholders,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere gratitude for thecontinued loyal patronage you have extended to us.
We express our deepest condolences to those who have passed away because of the novel coronavirus(COVID-19) infection, and extend our heartfelt sympathies to those who have been stricken with the virus.
Having settled the 37th fiscal period (January 1, 2020 – June 30, 2020), we would like to report on theperformance results.
In the 37th fiscal period, the spread of COVID-19 forced the entire society to face a situation neverexperienced before, as the government declared a state of emergency in April, and economic activities also
suffered a serious blow.
Under such circumstances, JPR newly acquired two properties and raised capital by issuing new investment
units through public offering.
Moreover, properties owned by JPR continued to operate at a high occupancy level and upward revision ofrents also made progress mostly as planned. Accordingly, cash distribution hit a record high since listing at
7,595 yen per unit.
For the 38th fiscal period ending December 2020 and thereafter, we presume that the impact of COVID-19
will linger and the management environment will become increasingly severe. In spite of this, JPR willcontinue its endeavors, together with Tokyo Realty Investment Management, Inc. (TRIM) to which it
entrusts asset management, to realize our stable growth over the medium to long term while taking into
account the governance of JPR as an investment corporation.
We ask you, our unitholders, to extend to us your continued consideration and support of our operations.
Determined Cash Distribution
37th fiscal period ending June 2020

¥7,595

Forecast Cash Distribution (reference)
38th fiscal period ending December 2020

¥7,72039th fiscal period ending June 2021

¥7,500* The operating forecasts are calculated based on certain assumptions, and the distribution per unit may vary depending on additional acquisition or sale of specified assets in the future, changes in the
management environment and other factors. Moreover, the forecasts should not be construed as a guarantee of the amount of distribution per unit.

2

Japan Prime Realty Investment Corporation

Account Highlights
Status of Distribution per Unit❚❚ Distribution per unit renewed its record high since listing.
(yen/unit)

8,000❚❚ A period-on-period increase in cash distribution is expected tocontinue for the 38th fiscal period.

(Forecast)❚❚ Cash distribution for the 39th fiscal period is assumed to decrease
period-on-period due to move-outs of large tenants, etc.

7,720

7,595

(Forecast)

7,500

7,493

7,500

7,213 7,223 7,245

7,326

7,380

7,048
7,000

6,756
6,588
6,500

6,351

6,419

Achieved a period-on-period increasein cash distributions for the

6,150
6,000

thirteenth straight fiscal period

6,006

0
24th
Period25th
Period26th
Period27th
Period28th
Period29th
Period30th
Period31st
Period32nd
Period33rd
Period34th
Period35th
Period36th
Period37th
Period38th
Period39th
Period(Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2020) (Jun. 2021)

Operating Results

Operating revenue(million yen)

Profits for rent business(million yen)

Operating income(million yen)

Ordinary income(million yen)

Net income(million yen)

Distribution per unit
(yen)

36th Period
ended
Dec. 2019
Results

37th Period
ended
Jun. 2020
Results

16,005

ChangeChangeRate ofchange16,363

+357

+2.2%

8,467

8,927

+460

+5.4%

7,684

8,013

+328

+4.3%

6,915

7,277

+362

+5.2%

TOPIC 1
Rental revenue increased significantly by
357 million yen due to upward revision ofrents and contribution by newly acquired
properties, etc.

TOPIC 2
JPR conducted temporary rent reductions
as part of its support to tenants under the
impact of COVID-19. Please refer to page
5 for more details.

TOPIC 3
6,914

7,276

+362

+5.2%

7,493

7,595

+102

+1.4%

Distribution per unit increased period-onperiod by 102 yen, despite the impact ofdilution from issuance of new investment
units.

3

37th Fiscal Period Topics
JPR newly acquired 2 properties by utilizing the sponsor pipelines, and procured funds through public
offering to raise capital.

Sencity Bldg.
Demonstrating overwhelming superiority of location and size, the property is a large-scale, high-rise office building thatfeatures largest scarcity value in the area for all aspects, including convenience, name recognition and landmark quality.

Greenery and relaxing spaces establishedon the site.

Areas for refreshing with a sense of
openness.

Location

Shinmachi, Chuo-ku, Chiba, Chiba

Acquisition Price

Acquisition Date

Completed

12.4%



March 27, 2020
April 6, 1993

Site Area

20,054.15 m2 (entire site)

Total Floor Space
Seller¥13,870 million



Ownership interest

158,663.55 m2 (entire building)
Taisei-Yuraku Real Estate

Minami Semba Bldg.
JPR acquired a well-located property situated in the Shinsaibashi area, one of the largest commercial cluster areas in
Osaka, from the main sponsor.
Location

Minamisemba, Chuo-ku, Osaka, Osaka

Acquisition Price
Acquisition Date

Completed
Site Area

1,405.74 m2

Total Floor Space

January 30, 2020
September 30, 1986

Seller¥3,750 million

7,738.47 m2
Tokyo Tatemono Co., Ltd.

Overview of Public Offering
Issuance Resolution Date

Number of Newly Issued Units

Total Purchase Price

February 14, 2020

35,250 units

16,207 million yen

After issuance of new investment units

4

Unitholders’ Capital

Number of Issued Investment Units Issued and Outstanding

231.6 billion yen ➤ 247.8 billion yen

923,000 units ➤ 958,250 units

Japan Prime Realty Investment Corporation

Implementation of Various Measures Responding to the Declarationof a State of Emergency Due to the Spread of COVID-19
In response to calls for self-restraint of operations following the declaration of a state of emergency,
operations were voluntarily suspended and business hours were shortened mainly by retail tenants.
JPR provided support for business continuity to the tenants who suffered resulting sales declines andother impacts, comprehensively considering the requests from relevant government agencies and theimpact on its future asset management.

■■ Significance of the Provision of Support❶ Protect good tenants and reinforce the relationship of trust with them, as well as avoid any increase in theoccupancy rate due to inflexible management sticking to immediate rent revenue.

❷ Work to maximize unitholder value by fulfilling our social responsibility as a facility owner and contributing
to the evolution of the society.

■■ Overview of the Provision of Support
Ratio of Tenants Granted Rent Reductions(based on rent)
Rent reduction

No reduction

17%

83%

Retail tenants

26 %Office tenants

74 %Office tenants❚❚ Impact was slight on office tenants, none of whom
was granted rent reductions by JPR

Retail tenants❚❚ Tenant compensation was granted in association
with the closure of whole buildings at some retailproperties❚❚ Payment moratorium and reduction of rents wereconducted, in consideration of the operational
status of individual tenants, etc.
Ratio of tenants granted rent reductions(based on rent): 17%
Total rent reductions granted: 144 million yen (Note)(Note) Indicates the currently estimated amount.

* Tenants are classified in consideration of the actual use situation, judged by the Asset Manager. Retail tenants
include those housed in office buildings.

■■ Impact on Operating Results
37th Fiscal Period Ended June 2020

-94 million yen

38th Fiscal Period Ending December 2020

-49 million yen(estimate)5Internal Growth Strategy
JPR has achieved internal growth through an increase in rents while maintaining the occupancy rate at ahigh level, with its measures including flexible use of target rents proving effective.

Major Reinforcement Strategies
1. Flexibly use target rents

JPR conducts leasing by setting target rents, to be used upon concluding new contracts
or renewing existing contracts for respective properties, for each fiscal period in
accordance with the market trends.

2. R einforce investments forvalue enhancement

JPR works to raise rents for new contracts and reinforce property competitiveness byinvesting in interior fittings and facilities, etc. that meet tenant needs.

3. C ontinuously enhancetenant satisfaction

Deliberately responding to tenants and creating safe and secured environments areimportant initiatives that positively affect rent negotiations as well as help prevent
contract cancellations from happening.

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
remained at a high level, with thefigure reaching the 99% level for the36th fiscal period.

Entire portfolio

Office properties

(%)

100

99.4
99.7
98.4

98.2

98
97.8

97.6

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

99.9

Retail properties, etc.
100.0
99.9
99.2

99.2
98.8

98.8

34th Period(Dec. 2018)35th Period(Jun. 2019)

100.0

99.6

99.5
99.2

99.4

36th Period(Dec. 2019)37th Period(Jun. 2020)

96

94

92

0

Changes in Revised Amount of Monthly Rent, Etc.
Steady progress was made in
negotiations on upward revision ofrents.

(million yen)

Upward revision

30

Downward revision

+29.2

+24.5
20

+17.1
+13.4

10

+10.0
+7.4

0

-10

6

-0.2
-3.9

-3.0

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

34th Period(Dec. 2018)

-1.9

-1.1

0.0

35th Period(Jun. 2019)36th Period(Dec. 2019)37th Period(Jun. 2020)

Japan Prime Realty Investment Corporation

External Growth Strategy
JPR is resolved to continuously work on investments focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investments in officeproperties in regional cities as well as retail properties, etc. to enhance the stability of earnings.

Basic Strategy
1. Focused investments in officeproperties in Tokyo

Improve the quality of the portfolio by making investments focused on officeproperties in Tokyo that are expected to contribute to long-term growth

Compared with other regional cities, Tokyo allows expectations for more stable occupancy and higher rent levels. Looking ahead,
JPR will continue to make investments focused on office properties in Tokyo, with an aim to further improve the quality of its
portfolio and enhance its growth potential over a long term.

2. Vigorously selective
investments in office properties
in regional cities as well as
retail properties, etc.

For office properties in regional cities as well as retail properties, etc., work
to invest in strictly selected blue-chip properties that can keep stablerevenues at a certain level

While securing growth potential by making focused investments in office properties in Tokyo, JPR will make vigorously selective
investments in large office properties in regional cities having a high competitive advantage in the areas and in urban retailproperties, etc. with long-term, fixed-rent contracts, in order to complement the stability of earnings from the entire portfolio.

Cases in which JPR Acquired Properties by Utilizing Sponsor Pipelines
JPR has displayed its strength of having sponsors comprised of real estate developers, a general contractor andfinancial institutions in acquiring blue-chip properties.
< Sponsors >The Otemachi Tower(Land with Leasehold Interest)

FUNDES Ueno

The Otemachi Tower (Land with
Leasehold Interest) was acquired froman SPC in which Tokyo Tatemono andTaisei Corporation have equity interests.

FUNDES Ueno was acquired from
Tokyo Tatemono.

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Meiji Yasuda Life Insurance■■ Utilization of Sponsor Pipelines
At JPR, properties acquired from its sponsors, etc. (51.9%) andproperties acquired based on the information provided by thesponsors (21.5%) together constitute 73.4% of the entire portfolio(on an acquisition price basis).
Going forward, JPR will continue to utilize the sponsor pipelines inan endeavor to enhance the quality of the portfolio throughvigorously selective investments in blue-chip properties and strategic
asset replacement.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Properties acquiredby utilizing sponsor pipelines

73.4%

Properties acquired
from third parties

121.7 Properties
billion yen

billion yen

Properties acquired
based on information
provided by sponsors

acquired from

26.6% sponsors, etc.
98.2 237.0
billion yen

21.5% 51.9%*Based on the status at the time when respective properties were acquired.

7

Financial Strategy
By controlling the ratio of interest-bearing debts in a conservative manner and making further endeavors tolengthen the maturity of procured debts and diversify repayment dates, JPR has maintained a stable andstrong financial base that should allow it to respond to future changes in the financial environment.

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 37th fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

Ratio of Interest-Bearing Debts to Total Assets (LTV)

R&I (Rating and Investment Information, Inc.)

39.5%

AA- (Stable)

Ratio of Long-Term, Fixed Interest Rate Debts

S&P (S&P Global Ratings Japan Inc.)

100.0%

Long-term:A (Stable)

Short-term:

A-1

Financing Status for the 37th Fiscal Period
JPR has successfully reduced debt cost while placing more emphasis on lengthening the maturity of procured debts
and diversifying the repayment dates.
Comparison of Debts Matured andNew Debts Procured in the 37th
PeriodAverage maturity(excluding short-term loans payable)

Average Maturity of the Entire Interest-Bearing Debts and Average Debt Cost
JPR has worked to reduce financing costs and stabilize financial operations bylowering the average debt costs and lengthening the average maturity.
(%)

Average maturity (right axis)

1.2

5.4 years ➤ 8.8 years

0.9

0.96

1.10

0.94

1.03

(years)Average debt cost (left axis)
0.90

0.87

0.80

(up 3.4 years)

8.0

6.0

0.78

0.6

Average debt cost(excluding short-term loans payable)

0.3

0.83% ➤ 0.53%(down 0.30 percentage points)

0.0

4.0
4.2
years

4.3
years

4.6
years

4.6
years

4.5
years

4.5
years

4.6
years

4.6
years

2.0

30th Period 31st Period 32nd Period 33rd Period 34th Period 35th Period 36th Period 37th Period(Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020)

0.0

Diversification of Repayment Dates for Interest-Bearing Debts
JPR has endeavored to mitigate refinance risks by diversifying repayment dates while establishing a commitment linewith a credit limit of 24 billion yen.
(billion yen)

Investment corporation bonds

Long-term loans payable

20

15
1.0
10

13.05

2.0
11.0

9.8

10.0

10.5

8.0

8.0

13.0

5.0

3.0

7.0

8.0

13.0

9.9

10.0

8.5

3.0
0

38th
Period39th
Period40th
Period41st
Period42nd
Period43rd
Period44th
Period45th
Period46th
Period47th
Period48th
Period49th
Period50th
Period

3.0

9.0

51st
Period

5.0

4.2

52nd
Period53rd
Period

7.1

5.0

10.0

4.0
54th
Period55th
Period56th
Period57th
Period(Dec. 2020) (Jun. 2021) (Dec. 2021) (Jun. 2022) (Dec. 2022) (Jun. 2023) (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) (Dec. 2026) (Jun. 2027) (Dec. 2027) (Jun. 2028) (Dec. 2028) (Jun. 2029) (Dec. 2029) (Jun. 2030)

8Japan Prime Realty Investment Corporation

Initiatives on Sustainability
For JPR to grow stably over the medium to long term, it is essential to address such social requirements as
considerations to the environment, society and governance. JPR will continue its endeavors to enhancesustainability, including its initiatives for environmental friendliness.

Sustainability Policy
Based on its corporate philosophy of working with integrity and responsibility, TRIM is resolved to contribute to thesustainable development of the society and the investment management business through discussion and cooperation
with its stakeholders (including investors and tenants), and aims to maximize value for JPR’s unitholders.

1. Initiatives on Behalf of Tenants
Respond to tenants with integrity and responsibility, and endeavor to provide them with new and distinct value as wellas enhance their satisfaction.

2. Initiatives on Behalf of the Environment
Aim to reduce environmental footprint through managing the assets JPR owns, in recognition of the importance ofaddressing environmental issues.
❚❚ Promote energy saving and reduction of greenhouse gas emissions.
❚❚ Work on effective use of water resources and promote "3Rs" (reuse, reduce and recycle) of waste.
❚❚ Strive to proactively disclose information on environmental issues.

3. Initiatives on Behalf of Local Communities
Work to coordinate with local communities through managing the assets JPR owns in the area, in an effort tocontribute to enhancing the brand value of the entire area.

4. Initiatives on Behalf of Employees
Respect each one of the employees and promote realization of a pleasant work environment by helping them enhancetheir professional expertise.

5. Initiatives on Behalf of the Society
Abide by laws and regulations as well as rules of the society and, with a high ethical perspective, focus on transparency
and objectivity in conducting business.

Initiatives on Environmental Friendliness
Recognizing the importance of addressing environmental issues, JPR strives to reduce its environmental footprint by
upgrading facilities and improving operation at the properties it owns.

■■ Energy-saving and Reduction of CO2 Emissions
Social responsibility towards climate change is becoming increasingly larger. Therefore, JPR is working on suchenvironmental and energy-saving measures as upgrading to more energy-efficient equipment (like LED lamps), while
promoting reduction of CO2 emissions by conducting measurement of greenhouse gas emissions figures at its
properties.
Item

Unit

2017

2018

2019

Year-on-year change

Power use

MWh/m2

0.142

0.145

0.141

-2.7%

Gas useMWh/m2

0.027

0.028

0.026

-6.3%

Water use

m3/m2

0.798

0.807

0.790

-2.1%

CO2 emission

t-CO2/m2

0.084

0.079

0.076

-2.8%

9

Initiatives on Sustainability
Initiatives on Social Awareness
JPR and TRIM, the Asset Manager, are related with a variety of stakeholders that include, on top of the unitholders,
the lenders, tenants, local communities, property management companies and the employees of TRIM. We areresolved to conduct business with a strong sense of integrity and responsibility, in order to build a good relationshipwith the stakeholders over a long term.
Cases

Tokyo Square Garden

An urban infrastructure facility located in front of Kyobashi Station, the property is undergoing
preparation of living support facilities for enhanced international financial functions, in an effort topromote creation of a comfortable and safe town.
Giving considerations to communities

Major acknowledgements•Offer a space to accept commuters when they are stranded•Good Design Award•Offer a storage for disaster prevention stockpile•SEGES (Social andEnvironmental Green Evaluation
System) Urban Oasis 2016

•Provide an emergency power source at the time of power outage•Offer a barrier-free network for pedestrians•Offer a comprehensive primary healthcare facility for foreigners•Offer a multilingual childcare support facility•Offer a support program for sustainability-oriented venturecompanies•Selected as a leading project of housing and buildings for
reducing CO2 emission•Minister of Land, Infrastructure, Transport and Tourism
Award for rooftop and wall special greening technology
contestInitiatives on GovernanceIn the belief that it is essential to secure sound and efficient operations of JPR in order to realize its continuous
growth, consistent efforts have been made to reinforce and sustain corporate governance of JPR and TRIM, the AssetManager.

■■ Decision Making Based on Stringent Processes❚❚ Upon making decisions on property acquisitions, asset
management and other issues, TRIM conducts
stringent screening and takes other procedures fromvarious perspectives through designated committees
and other institutions.
❚❚ In particular, material transaction matters conductedwith the sponsors, etc. are screened and verified by theCompliance Committee as to their adequacy andrationality. The Committee employs a unanimous votefor approvals in principle.
❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.

Stringent Decision-Making Process(for property acquisitions)
Proposal, planning

Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Members of the Compliance Committee of TRIM

Final decision on Acquisition

President and CEO

Decision making on acquisition
over certain amountCorporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager

Special member (outside attorney)

10

Conclude agreement

Compliance Committee /JPR’s Board of Directors
Investment Subcommittee
TRIM’s Board of Directors
Acquisition

In addition to the processes indicated in the above chart, there may be cases where approval by
the Board of Directors and consent by JPR are required as designated in the Act on Investment
Trusts and Investment Corporations.

Japan Prime Realty Investment Corporation■■ Risk Management
TRIM’s Risk Response Scheme❚❚ JPR and TRIM has established an effective risk management
system, and endeavor to avoid occurrence of risks related toinvestment management and address risks in case they occur.

Identify risks❚❚ In order to enhance and reinforce risk management activities,
JPR and TRIM continuously work to identify, assess andrespond to risks and monitor and improve the situation.
❚❚ In conducting information management, TRIM implements
safety measures against various threats and has prepared
contingency plans to prepare for failures, etc.

Improve thesituation

Assess risks

Monitor thesituation

Respond to risks

Recognition by External Bodies
JPR is endeavoring to enhance energy use efficiency and safety and convenience of users from the perspective ofenvironmental awareness that is increasingly heightened socially.

1. Status of Acquisition of Environmental Certifications
JPR is promoting acquisition ofrecognitions from external
assessment bodies in order toobjectively monitor theenvironmental performance of its
owned properties.

(%)

Ratio of acquisition (left axis)

80

53.4

60

40

(thousand m2)

Total floor space (right axis)

54.4

600
60.1
450

34.0

300

20

0

150

34th Period(Dec. 2018)35th Period(Jun. 2019)36th Period(Dec. 2019)37th Period(Jun. 2020)

0

2. Acquisition of Assessment in CASBEE for Building Certification
CASBEE (Comprehensive Assessment System for Built
Environment Efficiency) is a system for comprehensively
assessing and ranking the environmental performance ofbuildings with regard to aspects such as the enhancementof environmental quality and performance including
indoor comfort and consideration for the landscape, on
top of the aspect of environmental consideration such asenergy saving and the use of materials and equipmentwith a lower environmental burden. In the 37th fiscal
period, Sompo Japan Sendai Bldg. acquired the highest“S” rank assessment while Kawaguchi Center Bldg.
acquired “A” rank assessment.

Sompo Japan Sendai
Bldg.

JPR Musashikosugi
Bldg.

Kawaguchi Center Bldg.

3. Acquisition of 5 Stars, the Highest Rank, in the GRESB Real Estate Assessment
The 2019 GRESB Real Estate Assessment acknowledged JPR’s superiority both in the“Management & Policy” and “Implementation & Measurement” dimensions, and designated
JPR as “Green Star” for the sixth consecutive year. JPR was also granted the highest rank of“5 Stars” in the GRESB Rating, which makes relative assessments in five ranks based on total
scores. In addition, JPR received an “A” mark, the highest ranking, in the GRESB Public
Disclosure (Evaluation of ESG Disclosure Level).
11

Portfolio Status
Portfolio Management Standards
Upon listing, JPR had portfolio management standards that set a target investment ratio by area of roughly 60% forTokyo versus 40% for Other Cities and a target investment ratio by asset class of roughly 80% for office properties
versus 20% for retail properties, etc. In the 16th fiscal period ended December 2009, however, JPR changed thestandards as follows with a policy of focusing investments in office properties in Tokyo.

Target investment ratio by area

Target investment ratio by asset classTokyo: 80 - 90%
Other Cities: 20 - 10%

Office: 70 - 90%
Retail, etc.: 30 - 10%

Asset Size Expansion Trends(billion yen)

500

Office properties in Tokyo

Office properties in Other Cities

Retail properties, etc.

457.1

450
400
350
300
250
200
150
100
50

0
Start of 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th
management(at period end)
(Note) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.

Changes in Investment Ratios by Area and by Asset ClassAs a result of focused investments in office properties in Tokyo, the investment ratio of office properties in Tokyo stoodat 67.3% as of the end of the 37th fiscal period, up 23.8 percentage points compared with the 43.5% as of the end of the
1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 37th Fiscal Period (June 30, 2020)

Increase in the investment ratio of
office properties in Tokyothrough focused investments
Office in
Other Cities
42.1%

Office in
Tokyo
43.5%

Retail, etc.
in Tokyo
14.4%+23.8 percentage points

Retail, etc. in
Other Cities
5.7%
Office in
Other Cities
9.8%
Retail, etc.
in Tokyo
17.2%

Officein Tokyo

67.3%(Note) The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

12

Japan Prime Realty Investment Corporation

JPR has built a portfolio that enjoys the utmost advantages of diversified investments, including the growthpotential of office properties located in Central Tokyo, the stability of urban retail properties, etc. withlong-term lease agreements, etc., and the profitability of office properties in Greater Tokyo and Other Cities.

Status of Diversified Investments (asset size by area/asset class and NOI yields)(%)

10

Circle size: asset size (based on acquisition price)
Height of the circle center (left axis):
NOI yield (based on acquisition price; annualized)

Office properties
in Central Tokyo

Office properties
in Greater Tokyo

Retail properties, etc.

97.7 billion yen
5.8%
5Office properties
in Other Cities

44.8 billion yen
6.0%

209.7 billion yen
4.3%

104.7 billion yen
4.7%

Portfolio average

4.9%0(Note 1) Asset size (based on acquisition price) refers to the total acquisition price of properties (limited to those owned at the end of the fiscal period) belonging to each category.
(Note 2) N
 OI yield (based on acquisition price; annualized) refers to the yield of NOI* in each category, annualized in accordance with the number of operating days of properties (including thoseacquired or sold in the fiscal period) in the relevant category (the average number of operating days weighted by acquisition price). Figures are rounded to the first decimal place.
*NOI = Real estate rental revenues - real estate rental expenses + depreciation

Status of Tenant Diversification (ratio of tenant occupancy of 1% or more)
If the ratio of occupancy (ratio of occupied floor space in the portfolio) by a single tenant is low, it reduces the risk oflower revenue when the tenant cancels a contract in the future. JPR keeps the ratio low to enhance the stability ofrevenue.
1% or more by sponsors, etc.
1 tenant / 1.6%

1% or more by other tenants(except for sponsors, etc. and tenants ofretail properties, etc.)
3 tenants / 3.5%
Number of tenants
Less than 1%

839 tenants / 68.1%

851

companies

1% or more by tenants of retailproperties, etc.

8 tenants / 26.9%(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees, which shows the diversification status in effect, when the tenant subleases the relevant property to sublessees (end tenants), etc. andthe leasing terms and conditions vary in accordance with the situation of subleasing. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If theleased rooms are in multiple buildings, the tenant is counted in plural.

13

Overview of Portfolio Properties
List of Properties (65 Properties for the Entire Portfolio)
Central Tokyo (31 Properties)
AcquisitionPrice(in millions)Leasable
Percentage ofPortfolio Acquisition Floor Space(m2)
Price (%)

Chiyoda-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo

Dec. 27, 2001
Dec. 27, 2001
Nov. 16, 2001
Nov. 16, 2001
Nov. 21, 2002
Nov. 12, 2004
Total
Jun. 21, 2002
Mar. 28, 2003
Jul. 23, 2003
May 28, 2004
Jun. 1, 2004
Jul. 2, 2004
Sep. 26, 2008
Mar. 25, 2015
Oct. 21, 2015
Total
Nov. 9, 2004
Apr. 12, 2005
Jul. 13, 2010
Total
Nov. 26, 2004
Mar. 27, 2008
Jul. 14, 2008
Dec. 19, 2008
Mar. 8, 2019
Total
Dec. 2, 2009
Dec. 25, 2009
Mar. 31, 2010
May 31, 2010
Aug. 29, 2011¥16,276
2,874
2,100
1,670
550
200
2,420
4,000
11,200
2,920
5,100
3,500
10,000
180
4,000
786
14,966
2,900
8,921
3,300
15,121710
21,000
3,760
1,870
171
2,041
2,800
8,400
5,100
15,0503,400

3.6 8,090.42
0.6 2,291.13
0.5 2,802.22
0.4
0.1
3,319.37
0.0
0.5
0.9 3,265.34
2.5 14,468.38
0.6 4,241.22
1.1 4,240.37
0.8 4,088.44
2.2
0.0
0.9 19,266.38
0.2
3.3
0.6
2.0
15,227.80
0.7
3.3
0.2 1,253.39
4.6 8,865.71
0.8 3,405.73
0.4
0.0 1,870.50
0.4
0.6 2,488.36
1.8 4,761.51
1.1 5,299.88
3.3 6,177.74
0.7 1,896.69

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,000

7.9 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo
Minato-ku, Tokyo

5,401.46

5.6

A-26

Tokyo Square Garden

Chuo-ku, Tokyo

0.6
0.7
0.2
0.9
2.0
2.0
4.0

3.1

Shibadaimon Center Bldg.

2,660
3,420
800
4,220
9,200
9,200
18,4003,325.29

A-25

Dec. 6, 2013
Dec. 6, 2013
Jul. 30, 2014
Total
Feb. 1, 2017
Apr. 4, 2017
Total

5,971.73

2.6

A-27

JPR Kojimachi Bldg.

A-1
A-3

JPR Shibuya Tower Records Bldg.
JPR Jingumae 432

Chiyoda-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo

1.3
2.6
0.9
0.1
0.5
0.6

3.3
5.8
5.4

Shinjuku Sanchome East Bldg.

5,750
12,000
4,275
540
2,200
2,740

3,493.67
8,076.85
1,027.33

A-4

Jun. 27, 2019
Jun. 30, 2003
Mar. 24, 2006
Mar. 14, 2007
Apr. 24, 2008
Total

2,347.81

1.6

A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo

Aug. 27, 2008

3,400

0.7

1,101.92

3.0

A-6
A-7

JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi

Chuo-ku, Tokyo
Chiyoda-ku, Tokyo

Dec. 15, 2016
Dec. 15, 2016

10,100
3,250

2.2
0.7

1,665.79
1,367.56

6.8
6.5

53.7 162,134.77—

Property
NumberOfficeRetail,etc.

Property Name

Location

A-1
A-2
A-3

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

A-5
A-6
A-7
A-9
A-10

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West

Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Shinagawa-ku, Tokyo
Chiyoda-ku, Tokyo
Shinagawa-ku, Tokyo

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

A-13
A-14
A-15

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

Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Minato-ku, Tokyo

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

A-17
A-18
A-20
A-21
A-22

Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.

A-23

Subtotal

14

Acquisition Date

¥245,533

PML (%)

3.9
5.8
3.7

4.4

7.8
6.8
7.3
4.9
3.5

1.3

3.1

4.7
1.3
6.0
5.3
7.7
6.8
5.0
2.6
4.5

Japan Prime Realty Investment Corporation

Greater Tokyo (19 Properties)
Property
Number

Property Name

Location

Acquisition Date

Leasable
Percentage ofPortfolio Acquisition Floor Space(m²)
Price (%)

PML (%)

B-1

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,8801.3

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.5

5,541.00

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.6

6,079.74

6.7

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013
Total

570

0.1

5,284.75

10.5

1,490

0.3

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

1.8 15,503.27

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.7

6,454.84

3.9

Sep. 30, 2005

888

0.2

Feb. 28, 2007

2,300

0.5

4,588.89

4.1

3,188

0.7

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Total

Retail,etc.

AcquisitionPrice(in millions)

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.3

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.4 11,998.77

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,300

6.8 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.5

6,493.99

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.3

6,871.45

2.4

B-14

Sencity Bldg.

Chiba, Chiba

Mar. 27, 2020

13,8703.0 13,271.20

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.2 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,254

1.6 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

0.9 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,0803.3 12,106.71

5.9

B-7

FUNDES Ueno

Taito-ku, Tokyo

Jun. 27, 2019

3,800

0.8

1,989.66

4.3¥140,555

30.7 205,004.17—

AcquisitionPrice(in millions)Leasable
Percentage ofPortfolio Acquisition Floor Space(m²)
Price (%)

PML (%)

Subtotal

Other Cities (15 Properties)
Property
NumberOfficeRetail,etc.

Property Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,327.50

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

0.9

7,132.22

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.6

6,577.53

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.3

3,945.18

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.7

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,876.35

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.6

3,257.07

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,918.28

5.0

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

0.9

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.4 16,654.33

1.6

C-21

JPR Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.2

4,021.63

11.5

C-22

Minami Semba Bldg.

Osaka, Osaka

Jan. 30, 2020

3,750

0.8

5,695.71

7.6

May 15, 2003

8,000

1.8
1.1 18,586.97

4.3

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

Total

13,000

2.8

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.6 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.3

2,478.42

8.4

Subtotal¥71,053

15.5 132,130.83

—

Total

¥457,141

100.0 499,269.77

2.0(Note 1) The table above shows properties owned by JPR as of June 30, 2020.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the ownership interest held by JPR.
(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Risk Management Inc., rounded down to the first decimal place.

15

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-12
A-4

A-7
A-9
A-24
A-4

A-17
A-27

A-23

Tokyo

A-3
A-1 A-2
A-26

Harajuku

A-5

A-3
Shinbashi

A-18

A-1

Sobu Line

A-20

ChiyodaWard

A-21
Shibuya Ward

A-5

Ichigaya

A-6

A-25

ShibuyaA-13
Keiyo Line

A-22
Chuo Ward

Minato Ward

Hamamatsucho

Tamachi
Yamanote Line

A-15

GotandaShinagawaA-7

Shinagawa Ward

A-6
A-16

A-10
Osaki

Tokaido Shinkansen
Yokosuka Line

Keihin Tohoku Line
Tokaido Main Line

Office
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-9
● A-10● A-11● A-12● A-13● A-14● A-15RetailKanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

● A-16● A-17● A-18● A-20● A-21● A-22● A-23● A-24● A-25● A-26● A-27

A Central Tokyo
Chiyoda Ward
Chuo Ward

16

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(Land with Leasehold Interest)
Science Plaza – Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.

■ A-1
■ A-3
■ A-4
■ A-5
■ A-6
■ A-7

JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

B Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures)
Office

Omiya

B-13

● 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 BusinessCenter Bldg.
● B-9 Rise Arena Bldg.
● B-10 Yume-ooka Office Tower● B-11 Olinas Tower● B-12 Tokyo Tatemono
Yokohama Bldg.
● B-13 Omiya Prime East

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main LineB-7 B-7

Ueno

Funabashi
Kinshicho

Tokyo

Shinjuku

Tachikawa

B-11
B-1 Sobu Main Line

Keiyo Line

ShibuyaNambu Line

B-14

Shinagawa

Chiba

B-2

● B-14 Sencity Bldg.

Musashikosugi

KANAGAWA

B-4

Yokohama Line

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

■ B-1
■ B-3
■ B-4
■ B-5

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping
Square■ B-6 Kawasaki Dice Bldg.
■ B-7 FUNDES Ueno

B-6

B-5
Tokaido Shinkansen

RetailMusashikosugi
Tokaido Main Line
Kawasaki

Property acquired in 37th fiscal
periodUchibo Line

B-3

Kamiooka

C Other Cities
Office● C-1 Niigata Ekinan Center Bldg.
● C-4 Tokyo Tatemono Honmachi Bldg.
● C-7 JPR Hakata Bldg.
● C-9 JPR Naha Bldg.
● C-12 Sompo Japan Sendai Bldg.
● C-13 Sompo Japan Wakayama Bldg.
● C-14 Tenjin 121 Bldg.
● C-17 JPR Dojima Bldg.
● C-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden● C-21 JPR Shinsaibashi Bldg.

OSAKA

Property acquired in 37th fiscal period

FUKUOKA● C-22 Minami Semba Bldg.

C-7
C-14
C-20

Retail
■ C-1
■ C-4
■ C-5

JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

C-4
C-17
C-21
C-22
C-1
C-5

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
NAHA

C-9

WAKAYAMA

C-13

17

Properties Owned by JPR
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,874 million
679.06 m2

Total Floor Space
Structure/Floors
Completed

4,351.46 m2
SRC B1/8F
February 1993

Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area

550.06 m2

Total Floor Space
Acquisition Price
Site Area¥16,276 million
1,751.13 m2

Total Floor Space

14,995.09 m

Structure/Floors
Completed

CompletedFebruary 1993

A-5

Chiyoda Ward, Tokyo

Acquisition Price
Site Area

Structure/Floors
Completed

Chiyoda Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

5,152.98 m2

Structure/Floors

SRC B1/9F

Completed

October 1984

Acquisition Price
Site Area¥11,200 million
8,992.18 m

Total Floor Space
Structure/Floors
Completed
Property Manager

February 1988

Tokyo Tatemono Co., Ltd.

18

Shinagawa Ward, Tokyo

Acquisition Price
Site Area

SRC/RC/S B2/13F

September 1999

Gotanda First Bldg.

¥2,920 million
1,551.19 m2

2

31,020.21 m2

SRC B1/9F

Tokyo Tatemono Co., Ltd.

A-7

Minato Ward, Tokyo

4,790.68 m2

Property Manager

Tokyo Tatemono Co., Ltd.

MS Shibaura Bldg.

¥4,000 million
636.90 m2

2

Property Manager

A-6

December 1989

JPR Crest Takebashi Bldg.

¥2,420 million
657.80 m

Total Floor Space

SRC/RC B1/8F

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

4,117.70 m2

Property Manager

Property Manager

2

A-4

Structure/Floors

S/RC/SRC B2/13F¥2,100 million

Total Floor Space
Structure/Floors
Completed
Property Manager

10,553.34 m2
SRC/RC B2/11F
July 1989

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-9

OfficeRetailJPR Ichigaya Bldg.

Court Ohsaki Mark West
A-10 Oval
Shinagawa Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price¥5,100 million

Site Area

1,058.04 m2

Total Floor Space

5,888.82 m2

Structure/Floors

SRC B1/9F

Completed

March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥3,500 million
4,006.00 m2

Structure/Floors
Completed

S/SRC B2/17F
June 2001

Property Manager

28,575.80 m

Tokyo Tatemono Co., Ltd.

2

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

Acquisition Price
Site Area¥14,966 million
8,409.52 m2(entire redevelopment project)
Total Floor Space

78,796.00 m2

Structure/Floors

S/RC/SRC B4/30F

Completed

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

(entire redevelopment project)

Shinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo
Acquisition Price
Site Area¥710 million
858.48 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,535.90 m2
S/SRC B2/10F
June 1994

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥15,121 million
3,522.46 m2

Structure/Floors
Completed

SRC B2/14F
April 1985

25,733.10 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

19

Properties Owned by JPR
Central Tokyo

OfficeRetailCenter Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo

Azabu Bldg.
A-15 Minami
Minato Ward, Tokyo
Acquisition Price
Site Area¥3,760 million
778.09 m2

Total Floor Space
Structure/Floors
Completed

4,570.63 m2
S 9F
June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo
Acquisition Price
Site Area

828.82 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space¥21,000 million
14,917.11 m2
176,607.89 m

Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

Tokyo Tatemono Co., Ltd.

2

Bldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo

Structure/Floors
Completed

5,216.21 m2
S B1/8F
July 2008

Property Manager

Tokyo Tatemono Co., Ltd.

Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥2,800 million
716.95 m

Total Floor Space
Structure/Floors
Completed

Site Area

4,205.09 m2
SRC B3/7F
October 1991

Tokyo Tatemono Co., Ltd.

Nihonbashi-horidome Bldg.
A-20 JPR
Chuo Ward, Tokyo
Acquisition Price
Site Area

Structure/Floors
Completed
Property Manager¥8,400 million
1,205.07 m2

Total Floor Space
Structure/Floors
Completed

6,466.94 m2
SRC B1/9F
March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo¥5,100 million
937.59 m

Total Floor Space

Acquisition Price2

Property Manager

Acquisition Price
Site Area

7,190.82 m2
S/RC B1/9F
June 2002¥15,050 million
2,217.49 m2

2

Tokyo Tatemono Co., Ltd.

20

¥2,041 million

Total Floor Space
Structure/Floors
Completed
Property Manager

7,683.19 m2
S 8F
May 2009

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailSanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

Otemachi Tower (Land with Leasehold Interest)
A-23 The
Chiyoda Ward, Tokyo

Acquisition Price¥3,400 million

Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F

Completed

October 1982

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥2,660 million
5,289.01 m2

Total Floor Space
Structure/Floors
Completed

24,560.36 m2
S/SRC/RC B2/12F
February 1995

Acquisition Price
Site Area

Center Bldg.
A-25 Shibadaimon
Minato Ward, Tokyo
Acquisition Price
Site Area

Structure/Floors
Completed

11,034.78 m

2

Total Floor Space

Property Manager

Nomura Real Estate Partners Co., Ltd.

¥36,000 million–

Property Manager––– (Note)(Note) Since the property consists of land with leasehold interest only, no property managementcompany has been appointed.

Square Garden
A-26 Tokyo
Chuo Ward, Tokyo

¥4,220 million
1,915.50 m2

Total Floor Space
Structure/Floors
Completed

11,419.93 m2
S/SRC B1/10F
July 1993

Property Manager

Nomura Real Estate Partners Co., Ltd.

Kojimachi Bldg.
A-27 JPR
Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥5,750 million
643.13 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

4,438.46 m2
S B1/9F
February 1999

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥18,400 million
8,124.72 m2

Structure/Floors
Completed

S/SRC B4/24F
February 2013

112,645.83 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

21

Properties Owned by JPR
Central Tokyo
A-1

OfficeRetailJPR Shibuya Tower Records Bldg.
Shibuya Ward, Tokyo

A-3

JPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price¥4,275 million

Site Area

198.10 m2

Total Floor Space

1,066.81 m2

Structure/Floors

S/SRC B1/7F

CompletedFebruary 2006

Property Manager

Jones Lang LaSalle K.K.

A-4

Shinjuku Sanchome East Bldg.
Shinjuku Ward, Tokyo

Acquisition Price
Site Area

2,578.69 m2

Total Floor Space
Acquisition Price
Site Area¥12,000 million
1,010.47 m2

Total Floor Space

8,449.56 m

Structure/Floors
Completed

CompletedFebruary 1992

Property Manager

Yurakucho Ekimae Bldg. (Yurakucho Itocia)
Chiyoda Ward, Tokyo

24,617.65 m2
S/SRC/RC B3/14F
January 2007

Property Manager

Prime Place Co., Ltd.

2A-5Structure/Floors

SRC/S B3/8F¥2,740 million

Prime Place Co., Ltd.

A-6

JPR Ginza Namiki-dori Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area¥10,100 million
230.11 m2

Total Floor Space
Structure/Floors
Completed

1,821.67 m2
S 11F
June 2008

Property Manager

Prime Place Co., Ltd.

A-7

FUNDES Suidobashi
Chiyoda Ward, Tokyo

Acquisition Price
Site Area

281.59 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space

¥3,400 million
6,808.12 m2
71,957.65 m

2

22Structure/Floors
Completed

S/SRC B4/20F
October 2007

Property Manager

Prime Place Co., Ltd.

¥3,250 million

Structure/Floors
Completed

1,477.91 m2
S 9F
July 2015

Property Manager

Prime Place Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-1

OfficeRetailArca East

B-2

Sumida Ward, Tokyo

Acquisition Price

JPR Chiba Bldg.
Chiba City, Chiba

Acquisition Price¥5,880 million

Site Area¥2,350 million

Site Area

3,755.01 m

1,382.35 m2

2

Total Floor Space
Structure/Floors

Total Floor Space

34,281.86 m2

Structure/Floors

S/SRC B3/19F

Completed

March 1997

Acquisition PriceJones Lang LaSalle K.K.

B-5

Yokohama City, Kanagawa

Shinyokohama 2nd Center Bldg.
Yokohama City, Kanagawa

Acquisition Price¥2,927 million

Site Area

January 1991

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Yokohama Nihon Odori Bldg.

Site Area

1,100.59 m

Total Floor Space

9,146.52 m2

Structure/Floors

Structure/Floors

SRC B1/11F

Completed

Completed

October 1989

Property Manager

Kawaguchi Center Bldg.

Acquisition Price

August 1991

JPR Ueno East Bldg.
Taito Ward, Tokyo

Acquisition Price¥8,100 million

Site Area

Site Area

4,524.61 m

Structure/Floors
Completed

Total Floor Space

28,420.85 m2

Structure/Floors

S/SRC B2/15F

CompletedFebruary 1994

Property Manager

Tachikawa Business Center Bldg.

October 1992

Rise Arena Bldg.
Toshima Ward, Tokyo
Acquisition Price

Acquisition Price
Site Area¥3,188 million
2,047.22 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

14,706.36 m2
S/SRC B1/12F
December 1994

Tokyo Tatemono Co., Ltd.

S/SRC B1/8F

Jones Lang LaSalle K.K.

B-9

Tachikawa City, Tokyo

8,490.44 m2

Property Manager

Nomura Real Estate Partners Co., Ltd.

B-8

¥3,250 million
1,242.97 m2

2

Total Floor Space

S/SRC B2/12F

Nomura Real Estate Partners Co., Ltd.

B-7

Kawaguchi City, Saitama

7,781.93 m2

Property Manager

Tokyo Tatemono Co., Ltd.

B-6

¥1,490 million
841.71 m2

2

Total Floor Space

S/SRC B1/13F

Completed

Property Manager

B-3

9,072.57 m2

Site Area ¥5,831 million
9,377.28 m2(entire redevelopment project)
Total Floor Space
91,280.94 m2(including residential tower)
Structure/Floors

RC/SRC/S B3/42F (Note)

Completed

January 2007

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

(Note) The office building has 15 floors above
ground and 2 floors underground.

23

Properties Owned by JPR
Greater Tokyo

OfficeRetailOffice Tower
B-10 Yume-ooka
Yokohama City, Kanagawa

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Acquisition Price
Site Area¥6,510 million
12,011.00 m

Structure/Floors

S/SRC/RC B3/27F

Completed

March 19972

Total Floor Space

185,974.87 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Tatemono Yokohama Bldg.
B-12 Tokyo
Yokohama City, Kanagawa
Acquisition Price
Site Area

Site Area¥31,300 million

27,335.29 m2 (entire site area)

Total Floor Space

Structure/Floors

SRC/RC/S B2/45F (Note)

CompletedFebruary 2006

Property Manager

257,842.41 m

2(includes commercial tower and residential tower)

Tokyo Tatemono Co., Ltd.

(Note) The office building has 31 floors above ground and 2 floors underground.

Bldg.
B-14 Sencity
Chiba City, Chiba¥7,000 million
1,110.28 m2

Total Floor Space
Structure/Floors
Completed

8,772.51 m2
SRC B1/9F
May 1981

Property Manager

Tokyo Tatemono Co., Ltd.

Prime East
B-13 Omiya
Saitama City, Saitama
Acquisition Price
Site Area¥6,090 million
2,268.09 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

9,203.98 m2
S 9F
February 2009

Tokyo Tatemono Co., Ltd.

24

Acquisition Price
Site Area¥13,870 million
20,054.15 m2(entire redevelopment project)
Total Floor Space

158,663.55 m2(entire redevelopment project)

Structure/Floors
Completed

S/SRC B2/23F
April 1993

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-1

OfficeRetailTanashi ASTA

B-3

Nishitokyo City, Tokyo

Cupo-la Main Bldg.
Kawaguchi City, Saitama
Acquisition Price
Site Area¥2,100 million
15,008.28 m2(entire redevelopment project)
Total Floor Space

48,321.96 m2

Structure/Floors
Completed

S/RC/SRC B2/10F
January 2006

Property Manager

Prime Place Co., Ltd.

B-4

JPR Musashikosugi Bldg.
Kawasaki City, Kanagawa

Acquisition Price
Site Area

4,757.09 m2

Total Floor Space
Acquisition Price
Site Area

12,326.30 m2

Total Floor Space

B-5¥10,200 million

80,675.27 m

Structure/Floors
Completed

Structure/Floors

SRC B2/17F

CompletedFebruary 1995

B-6

Saitama City, Saitama
Acquisition Price
Site Area

SRC/RC/S B1/6F
March 1983

Prime Place Co., Ltd.

Prime Place Co., Ltd.

Musashiurawa Shopping Square

18,394.32 m2

Property Manager

Property Manager
2¥7,254 million

Kawasaki Dice Bldg.
Kawasaki City, Kanagawa¥4,335 million
8,317.99 m2

Total Floor Space
Structure/Floors
Completed

28,930.36 m2
S B1/4F
October 2005

Property Manager

Geo-Akamatsu Co., Ltd.
Prime Place Co., Ltd.

B-7

FUNDES Ueno
Taito Ward, Tokyo

Acquisition Price
Site Area¥3,800 million
383.74 m2

Total Floor Space
Structure/Floors
Completed

2,235.60 m2
S B1/10F
July 2017

Property Manager

Prime Place Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥15,080 million
4,475.45 m2

Structure/Floors
Completed

S/SRC/RC B2/11F
August 2003

36,902.01 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

25

Properties Owned by JPR
Other Cities
C-1

OfficeRetailNiigata Ekinan Center Bldg.

C-4

Niigata City, Niigata

Acquisition Price
Site Area

Structure/Floors
Completed

Osaka City, Osaka

Acquisition Price¥2,140 million
2,706.99 m

Total Floor SpaceTokyo Tatemono Honmachi Bldg.

Site Area
Total Floor Space

19,950.42 m2

Structure/Floors

S/SRC B1/10F

Completed

March 1996

Property Manager

JPR Hakata Bldg.
Acquisition Price
Site Area
Total Floor Space
Structure/Floors

Naha City, Okinawa

Acquisition Price2

Site Area
Total Floor Space

S/SRC B1/12F

Structure/Floors

Completed

June 1985
expansion in November 2003

Completed

Property Manager

Structure/Floors
Completed

Site Area¥3,150 million

Structure/Floors

10,783.52 m2

Completed

SRC B1/12F

6,715.07 m2
S 9F
July 1996

Property Manager

December 1997

Nomura Real Estate Partners Co., Ltd. (Note)(Note) The property manager was changed
from Tokyo Tatemono Co., Ltd. as ofApril 1, 2020.

Tokyo Tatemono Co., Ltd.

121 Bldg.
C-14 Tenjin
Fukuoka City, Fukuoka¥1,670 million
1,128.45 m2

Total Floor Space

Property Manager

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price
Site Area¥2,810 million
1,164.39 m

Total Floor Space
Structure/Floors
Completed
Property Manager

Acquisition Price
Site Area

8,690.95 m2
S/SRC 13F
July 2000¥2,140 million
668.11 m2

2

Tokyo Tatemono Co., Ltd.

26

October 1991

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama

1,895.67 m2

Total Floor Space

SRC/S 12F

Tokyo Tatemono Co., Ltd.

Acquisition Price

Site Area

5,780.71 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Acquisition Price¥1,560 million
959.87 m2

9,828.73 m2

Japan Sendai Bldg.
C-12 Sompo
Sendai City, Miyagi

February 1970

JPR Naha Bldg.

¥2,900 million
1,214.63 m

SRC B3/9F

Tokyo Tatemono Co., Ltd.

C-9

Fukuoka City, Fukuoka

14,619.52 m2

Property Manager

Jones Lang LaSalle K.K.

C-7

¥4,150 million
1,432.64 m2

2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,696.01 m2
SRC B2/9F
October 1993

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

OfficeRetailNagoya Fushimi Bldg.
C-19 JPR
Nagoya City, Aichi
Acquisition Price
Site Area

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka¥4,137 million
1,610.38 m2

Total Floor Space
Structure/Floors
Completed

10,201.44 m2
SRC B1/9F
March 1991

Property Manager

Tokyo Tatemono Co., Ltd.

Shinsaibashi Bldg.
C-21 JPR
Osaka City, Osaka
Acquisition Price
Site Area¥5,430 million
609.31 m2

Total Floor Space
Structure/Floors

5,303.98 m2
S B2/10F

Acquisition Price

CompletedFebruary 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

Semba Bldg.
C-22 Minami
Osaka City, Osaka
Acquisition Price
Site Area

Site Area¥10,996 million
4,486.44 m2

Total Floor Space

Structure/Floors
Completed

22,286.35 m

Tokyo Tatemono Co., Ltd.

JPR Umeda Loft Bldg.
Osaka City, Osaka

Acquisition Price¥3,750 million

Site Area

1,405.74 m

2

Total Floor Space
Structure/Floors
Completed

Total Floor Space

7,738.47 m2

Structure/Floors

SRC B1/8F

Completed

September 1986

C-5

Kobe City, Hyogo

Acquisition Price
Site Area¥7,220 million
3,994.47 m

Structure/Floors
Completed
Property Manager

33,877.71 m2
SRC/S B2/11F
June 1994

Nomura Real Estate Partners Co., Ltd.

17,897.56 m2
SRC B1/8F
April 1990

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area

2

Total Floor Space

3,518.68 m2

Nomura Real Estate Partners Co., Ltd.

Nomura Real Estate Partners Co., Ltd.

Housing Design Center Kobe

¥13,000 million

Property Manager

Property Manager

C-4

January 2009

Property Manager
2

C-1

SRC 14F

Total Floor Space
Structure/Floors
Completed¥6,000 million
592.45 m2
3,219.36 m2
S/SRC 9F
June 1994

Property Manager

Nomura Real Estate Partners Co., Ltd.

27

Structure and History of JPR
The Objective and Basic Characteristics of JPR (as of June 30, 2020)
With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties (urban retailproperties) located in thriving commercial areas, hotels (urban accommodation facilities) (urban retail properties
and urban accommodation facilities referred together as “urban retail properties, etc.”) and urban multi-use
facilities, and the land on which these buildings are located. In addition, in light of the returns and risks of theseinvestment targets, JPR shall make it a basic policy to invest not only in Tokyo, but also strive to diversify into otherregional cities so as to maximize the advantages of portfolio management.

Corporate History
Date

Description

September 6, 2001
September 14, 2001
November 16, 2001
January 22, 2002
June 14, 2002

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the investment corporation under Article69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)
Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act
Started asset management (acquisition of real estate beneficiary interests in trust for 13 underlying trust assets comprising 11
office properties and 2 retail properties) (¥40,730 million in total)
Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act
Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange and started trading

Structure of JPR
75%

10%

10%

5%

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Meiji Yasuda Life Insurance

Equity Investment
Asset Manager

General Tenant Services Agent /Construction Management Agent /Property Transfer AgentTokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.
Yasuda Real Estate Co., Ltd.
Taisei Corporation

Investment Corporation
Japan Prime Realty
Investment Corporation
Loans / Issue
of Investment
Corporation
Bonds

Asset
Management
Property

Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

28

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents

Cash
Distribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

Mizuho Trust & Banking, Co., Ltd.
and others

Lender / Investment
Corporation Bond Investor
Unitholders
Transaction
Unitholders

Japan Prime Realty Investment Corporation

Overview of Asset Manager
Overview
Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporations¥350 million
Tokyo Tatemono Co., Ltd. (75%)
Yasuda Real Estate Co., Ltd. (10%)
Taisei Corporation (10%)
Meiji Yasuda Life Insurance Company (5%)

NameBusiness Description
Capitalization
Shareholder
Composition(Shareholding ratio)
Corporate History

April 28, 2000
October 13, 2000

EstablishedObtained license as real estate transaction agent (currently: No. (4) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act (Approval
Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts and Investment
Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note)
Applied for registration and submitted application form for financial instruments exchange business

March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

(Note) Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006)

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

Compliance Committee(Compliance Subcommittee)
Compliance OfficeFinancial DivisionCorporate Planning /Administration Division

Research Group
Asset
Asset
Asset
Asset
Investment Management Management Management EngineeringGroup
3 Group
1 Group
2 GroupGroup

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministrationGroup■■ Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions, as wellas the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees are comprised of the President and CEO,
Investment Management Division General Manager, Financial Division General Manager, and Corporate Planning /Administration Division General Manager. The Compliance Office General Manager also participates in thesecommittees to enhance confirmation in terms of legal compliance. Matters concerning the targets and policies ofinvestment management are decided by the Board of Directors, and matters concerning planning and implementationof asset management are decided by the Investment Committee.
Matters concerning acquisition, disposition or management of individual properties are decided by the Investment
Subcommittee or the Fund Management Subcommittee, respectively. Moreover, the Board of Directors has final
decision-making authority for acquisitions and dispositions of individual assets having over a certain amount of value.

29

Asset Management Report

1. Overview of Asset Management(1) Changes in Operating Results and Other Management Data

Operating Revenue
Rent revenue – real estate

Million yen

33rd Fiscal
Period(Jan. 1, 2018 Jun. 30, 2018)15,204

Million yen

15,204

15,652

15,69516,005Gain on sale of real estate

Million yen

–

–

405

–

–

Million yen

7,869

8,066

8,147

8,320

8,350

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance

Fiscal Period

Operating Expenses
Expenses related to rent business
Operating Income
Ordinary Income
Net Income
Total Assets(Period-on-period variation)
Interest-bearing Debts
Total Unitholders Equity(Period-on-period variation)
Unitholders' Capital
Total Cash Distributions
Dividend payout ratio
Number of Units Outstanding
Total Unitholders' Equity per unit
Cash Distribution per Unit
Distribution amountExceeding profit distribution amount
Ordinary Income on Total Assets (Note 1)
Annualized (Note 10)
Net Income on Total Unitholders'Equity (Note 2)
Annualized (Note 10)
Total unitholders' equity at
beginning of period
Unitholders' Equity Ratio at End of
Period (Note 3)(Period-on-period variation)
Interest-bearing Debts to Total Assets at
End of Period (Note 4)
DSCR (Note 5)
Net income before interest andamortization (Note 6)
Interest expenses
NOI from Leasing (Note 7)
Annualized NOI yield(Notes 9 and 10)
NCF from Leasing (Note 8)
Annualized NCF yield(Notes 9 and 10)
Investment Properties Owned (Note 11)
Number of Tenants
Total Leasable Floor Space (Note 12)
Occupancy Rate

Unit

34th Fiscal
Period(Jul. 1, 2018 Dec. 31, 2018)
15,65235th Fiscal
Period(Jan. 1, 2019 Jun. 30, 2019)16,10136th Fiscal
Period(Jul. 1, 2019 Dec. 31, 2019)
16,00537th Fiscal
Period(Jan. 1, 2020 Jun. 30, 2020)
16,363
16,363

Million yen

7,114

7,311

7,349

7,538

7,436

Million yen

7,335

7,586

7,954

7,684

8,013

Million yen

6,685

6,761

7,216

6,915

7,277

Million yen

6,686

6,760

7,216

6,914

7,276

Million yen

446,297

447,157

452,366

453,467

473,186(-0.0)(+0.2)(+1.2)(+0.2)(+4.3)

Million yen%

181,120

181,020

185,020

185,020

187,020

Million yen

238,638

238,712239,166

239,269

255,838(+0.0)(+0.0)(+0.2)(+0.0)(+6.9)

Million yen

231,653

231,653

231,653

231,653

247,860

Million yen

6,687

6,761

6,811

6,916

7,277

%

100.0

100.0

94.3

100.0

100.0

Units

923,000

923,000

923,000

923,000

958,250

Yen

258,546

258,626

259,118

259,230

266,984

Yen

7,245

7,326

7,380

7,493

7,595

Yen

7,245

7,326

7,380

7,493

7,595

Yen

–

–

–

–

–

%

1.5

1.5

1.6

1.5

1.6

%

3.0

3.0

3.2

3.0

3.2

%

2.8

2.8

3.0

2.9

2.9

%

5.7

5.6

6.1

5.7

5.9

238,619

238,638

238,712239,166

239,269

53.5

53.4

52.9

52.8

54.1

(+0.0)(-0.1)(-0.5)(-0.1)(+1.3)

%

40.6

40.5

40.9

40.8

39.5

Times

11.6

12.0

12.5

13.2

14.1

Million yen

9,442

9,500

9,536

9,620

10,015%

Million yen%

Million yen

812

794

760

731

710

Million yen

10,033

10,285

10,311

10,441

10,954

%

4.7

4.7

4.7

4.7

4.8

Million yen

8,887

9,158

8,986

8,858

9,574

%

4.1

4.2

4.1

4.0

4.2

62

62

63

63

65

747

747

757

760

851

m2

478,117.02

478,088.25

480,277.86

480,284.17

499,269.77

%

98.8

99.2

98.6

99.6

99.7

(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debts at end of period / total assets at end of period x 100(Note 5) Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Income before income taxes - gain on sale of real estate + loss on sale of real estate + extraordinary loss + interest expenses (including interest expenses oninvestment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures

3030

Japan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (33rd fiscal period: ¥435.05 billion, 34th fiscal period: ¥435.05 billion, 35th fiscal period: ¥444.77 billion,
36th fiscal period: ¥439.52 billion and 37th fiscal period: ¥457.14 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 33rd fiscal period: 181 days, 34th fiscal period: 184 days,
35th fiscal period: 181 days, 36th fiscal period: 184 days and 37th fiscal period: 182 days.
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

(2) 37th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 958,250 units as of the end of the 37th fiscal period (June 30, 2020). JPR has assigned the asset management of its portfolio
to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize unitholder
value by efficiently managing the portfolio primarily comprising office properties and retail properties.
2) Management Environment
Looking at the Japanese economy in the 37th fiscal period, a rapid decrease in exports and deterioration of corporate earnings wereobserved under the influence of the novel coronavirus (COVID-19) infection, with capital investment and employment also driftingon a weak note. As the Japanese economy is in an extremely difficult situation, however, signs of improvement are seen in someareas, such as consumer spending showing a pickup associated with the lift of the government’s declaration of a state of emergency.
The overseas economy has also faced a very severe situation due to the impact of COVID-19 but, entering May, the economic
conditions in the U.S. and Europe appear to have stopped declining.
The Office Property Leasing Market
The supply and demand conditions in the office property leasing market generally remained tight, despite the impact of COVID19 observed in some areas, and the upward trend of the rent levels for new contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
Activities at urban retail properties which JPR targets for investment were weak as urban areas became much less crowded due tosuch factors as the spread of COVID-19 and voluntary restraint of people from going out associated with the government’s
declaration of a state of emergency. Following the lift of the declaration, however, a pickup is seen to take place in some areas.
The For-Sale Real Estate Market
In the for-sale real estate market, investors continue to stay on the sidelines as they feel uncertain of the outlook due to the spreadof COVID-19, etc., and transactions have remained stagnant since April. Views on hotels and urban retail properties, which areparticularly impacted hard, are mostly very attentive to the track to recovery going forward, and the trend of investors’ expected
cap rate reflects their cautious attitude. On the other hand, there has been no increase in such actions as transfers and rushed sellingof properties in the face of worsened corporate earnings to date. As blue-chip properties in which JPR targets to invest are still in
short supply and low-yield transactions continue to prevail, the acquisition environment remains harsh. Accordingly, investors
continue to look for ways to effectively acquire properties, such as diversifying the target assets for investment and conducting
asset replacement.
3) Portfolio Management Status
Acquisition of New Properties
JPR investigates possible investments mainly in office properties in the Tokyo area, plus office properties in regional cities andretail properties, etc. (including hotels; the same shall apply hereinafter), with the primary aim of improving the quality of theportfolio and achieving stable growth of earnings while giving attention to balancing diversification of the portfolio, both in termsof location and asset type.
During the 37th fiscal period, JPR acquired Minami Semba Bldg. (acquisition price: 3,750 million yen) in January 2020 as well as
Sencity Bldg. (acquisition price: 13,870 million yen) in March 2020. Consequently, as of the end of June 2020, the balance of JPR’s
assets under management totaled 65 properties, or 457.1 billion yen on an acquisition price basis, with the total leasable floor spacestanding at 499,269 m2 and the number of tenants at 851.

3131

Asset Management Report

Operational Management of Portfolio
In the office property leasing market in the 37th fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving its
occupancy rate. As a result of these efforts, the occupancy rate at the end of the 37th fiscal period increased 0.1 percentage points
period-on-period to 99.7%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with an aim to create spaces where the workers feelsatisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning systems andreplacement of lighting equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple properties.
Moreover, as its initiatives on environmental issues, JPR has continuously obtained environmental certifications. As of June 30,
2020, JPR acquired the DBJ Green Building Certification*1 for 16 properties and the CASBEE for Building Certification *2 for 10
properties (including 3 newly certified properties). On top of these certifications JPR acquired, its endeavors on environmental
issues were so acknowledged that it was designated as “Green Star” in the GRESB*3 Real Estate Assessment (the survey conducted
in 2019), marking the sixth consecutive year of recognition with the highest ranking in the survey. JPR was also granted a higher
rank of “5 Stars” in the GRESB Rating, which makes relative assessment based on total scores.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on thescoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate
disaster and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental
performance of buildings. Efforts to develop and popularize the system in Japan are being made under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.
*3 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 60 organizations worldwide such as European pension asset managers.

Fund Procurement
In the 37th fiscal period, JPR additionally issued investment units (please refer to (3) Additional Offerings, etc. below) to procure
16.2 billion yen, which was used to fund the acquisition of a new property and repay borrowings.
JPR also endeavored on debt financing with more emphasis placed on lengthening the debt maturity and diversifying repayment
dates, in an effort to make its financial base more solid and stronger against the backdrop of the favorable fund procurement
environment and low interest rates. During the fiscal period, JPR borrowed 13.0 billion yen to fund the refinance of interest-bearing
debts (9.0 billion yen) and the acquisition of another property (4.0 billion yen). The average maturity of and the average intereston the new interest-bearing debts stood at 8.8 years and 0.53%, respectively, in contrast to 5.4 years and 0.83% for the relevantinterest-bearing debts (excluding short-term debts) before refinancing.
As of the end of the 37th fiscal period, the balance of interest-bearing debts totaled 187.0 billion yen, with balance of borrowingsof 160.5 billion yen and balance of investment corporation bonds of 26.5 billion yen. The ratio of interest-bearing debt to total
assets (Note 1) was 39.5%, long-term and fixed interest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3) was
0.78% and average maturity (Note 4) was 4.6 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial institutions.
The following represents the issuer ratings for JPR as of the end of the 37th fiscal period.
Details of Corporate Credit Ratings as of June 30, 2020
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

S & P Global Ratings Japan Inc.

Long-term: A (Stable)
Short-term: A-1(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporationbond management expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 37th fiscal period to the repayment deadlines for all
interest-bearing debts based on the balance of each interest-bearing debt.

3232

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date

Number of Units
Outstanding

Event

Variation

Unitholders' Capital(millions of yen)

Balance

Variation

Remarks

BalanceJanuary 24, 2017

Additional public offering

47,600920,600

20,237

230,632(Note 1)February 14, 2017

Third-party allotment

2,400

923,000

1,020

231,653(Note 2)

March 3, 2020

Additional public offering

35,250958,250

16,207

247,860(Note 3)(Note 1) New investment units were issued through a public offering at 439,040 yen per unit (underwriting price of 425,152 yen per unit) to fund acquisition of new specificassets and partly repay debts.
(Note 2) New investment units were issued through a third-party allotment at 425,152 yen per unit to fund acquisition of new specific assets and partly repay debts.
(Note 3) New investment units were issued through a public offering at 474,810 yen per unit (underwriting price of 459,790 yen per unit) to fund acquisition of new specified
assets and partly repay debt.

(4) Cash Distributions
With regard to the cash distributions of the 37th fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 36th fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result,the cash distribution per unit came to 7,595 yen for the 37th fiscal period.
(Thousands of yen unless otherwise indicated)
33rd Fiscal
Period34th Fiscal
Period35th Fiscal
Period36th Fiscal
Period37th Fiscal
Period(Jan. 1, 2018 Jun. 30, 2018)(Jul. 1, 2018 –Dec. 31, 2018)(Jan. 1, 2019 Jun. 30, 2019)(Jul. 1, 2019 Dec. 31, 2019)(Jan. 1, 2020 –Jun. 30, 2020)

6,701,131

6,774,889

7,229,214

6,926,967

7,287,774

13,996

12,991

417,474

10,928

9,865

Total Cash Distributions

6,687,135

6,761,898

6,811,740

6,916,039

7,277,908(Cash Distribution per Unit)

Fiscal Period

Unappropriated Retained Earnings at End of Period

BreakdownInternal Reserves(7,245 yen)

(7,326 yen)

(7,380 yen)

(7,493 yen)

(7,595 yen)

Total Cash Distributions from Net Income

6,687,135

6,761,898

6,811,740

6,916,039

7,277,908(Cash distribution from net income per unit)(7,245 yen)

(7,326 yen)

(7,380 yen)

(7,493 yen)

(7,595 yen)

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)Repayment of Paid-in Capital(Repayment of paid-in capital per unit)

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)3333

Asset Management Report(5) Future Management Policies and Vital Issues
Looking ahead, with the Japanese economy put in an extremely severe situation even though the declaration of a state of emergency
has been lifted, attention should be paid to the COVID-19 trends and the impacts of fluctuations in the financial and capital markets,among other factors.
In the office property leasing market, although leasing of newly-constructed buildings supplied in 2020 remains steady, the impact of
the spread of COVID-19 is expected to linger for a long time going forward, raising concerns about the influence it will give on theoffice market conditions. In this regard, JPR is resolved to continue its endeavors to enhance the competitiveness of its owned properties,
as it has focused on improving tenant satisfaction through proactive implementation of value enhancement works and provision ofelaborate management services.
In the for-sale real estate market, it will become even more important to discern the growth potential in earnings of respective properties,
while taking into account the impact of COVID-19 on the leasing market. Although the downward trend of cap rates that has continued
to date may come to a stop, the low interest rate and low yield environment will be maintained, in which it is required to firmly keep
the attitude of vigorously selective investment for implementing real estate investment that assumes possession of properties over the
medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve the quality of its portfolio
and enhance its growth potential and stability over the long term. In the for-sale office property market, the purchase cap rate andexpected cap rate levels still stay low, with properties remaining in short supply. Going forward, although close attention must be
paid to the impact of COVID-19, etc., JPR will fully investigate the stability and growth potential of candidate properties when
acquiring them. As for retail properties, etc., JPR will work to invest in strictly selected blue-chip properties that can keep stablerevenues at a certain level in order to complement the stability of earnings from the entire portfolio. In doing so, JPR will have to
make more prudent investigations, paying close attention to the future sales trends, etc. of such properties under the influence ofthe spread of COVID-19. JPR will continue its endeavors to acquire new properties under reasonable terms by negotiating prices
based on detailed market studies and property due diligence.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of TRIM (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation and Meiji Yasuda Life Insurance
Company), accurately following market trends and carefully researching investment value, including the future potential ofcandidate properties.
Furthermore, JPR will also investigate asset replacement by taking into consideration the timing of implementation, in order toimprove the quality of its portfolio and enhance its growth potential over a long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and increase tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

3434

Japan Prime Realty Investment Corporation(6) Information Disclosure
Positioning the proactive voluntary disclosure of information as one of its key management policies, JPR voluntarily discloses
information believed to be useful to investment decisions, along with the information disclosure required by the Tokyo Stock Exchange
and set forth by laws and regulations, etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide expanded information including monthly occupancy rates of all properties in the portfolio andhistorical data, as well as offer information for retail investors and deliver video presentation on financial results sessions for securities
analysts.

(7) Significant Subsequent Events
Not applicable.

3535

Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital
33rd Fiscal
Period as ofJune 30, 2018
5,000,000

34th Fiscal
Period as ofDecember 31, 2018
5,000,000

35th Fiscal
Period as ofJune 30, 2019
5,000,000

36th Fiscal
Period as ofDecember 31, 2019
5,000,000

37th Fiscal
Period as ofJune 30, 2020
5,000,000

Total number of units issued andoutstanding

923,000

923,000

923,000

923,000

958,250

Unitholders' capital (millions of yen)

231,653

231,653

231,653

231,653

247,860

Total number of unitholders

11,647

11,05010,376

9,841

11,085

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 37th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

1-8-11 Harumi, Chuo-ku, Tokyo

212,163

22.14

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

2-11-3 Hamamatsucho, Minato-ku, Tokyo

136,919

14.28

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

2-2-2 Otemachi, Chiyoda-ku, Tokyo

47,342

4.94

Tokyo Tatemono Co., Ltd.

1-9-9 Yaesu, Chuo-ku, Tokyo

29,300

3.05

Trust & Custody Services Bank, Ltd. (Securities
Investment Trust Account) (Note2)

Harumi Island Triton Square Office Tower Z,
1-8-12 Harumi, Chuo-ku, Tokyo

25,773

2.68

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.60

Meiji Yasuda Life Insurance Company

2-1-1 Marunouchi, Chiyoda-ku, Tokyo

24,0002.50

State Street Bank West Client Treaty 505234 (Standing
Proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA 02171,
U.S.A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

14,0091.46

SSBTC CLIENT OMNIBUS ACCOUNT (Standing
proxy: Custody Services Department, Tokyo Branch,
The Hongkong and Shanghai Banking Corporation
Limited)One Lincoln Street, Boston, MA 02111, U.S.A.
(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

13,922

1.45

Japan Securities Finance Co., Ltd.

1-2-10 Nihonbashi-Kayabacho, Chuo-ku,
Tokyo12,3001.28

540,728

56.42

Total
(Note 1) Percentage of total units outstanding is rounded down to the second decimal place.

(Note 2) As of July 27, 2020, Japan Trustee Services Bank, Ltd. and Trust & Custody Services Bank, Ltd. conducted a three-party merger, with Japan Trustee Services Bank,
Ltd. as the surviving company and Trust & Custody Services Bank, Ltd. and JTC Holdings, Ltd. as the dissolving companies. As of the same date, the corporatename was changed to Custody Bank of Japan, Ltd.

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 37th fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

3636

Name

Other Current Assignments

Yoshihiro Jozaki

President and Chief Executive Officer, Tokyo Realty
Investment Management, Inc.

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

Group Representative Partner of GYOSEI Certified
Public Tax & Accountants' Co.
Representative, Nobuhisa Kusanagi Certified Public
Accountant Office

EY ShinNihon LLC–

Total Directors' Fee
during the 37th Fiscal
Period (thousands of yen)
– (Note 3)

Numberof Owned
Units
–
–

4,200

16,900––Japan Prime Realty Investment Corporation(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements and fees regarding preparation of comfort letters for additional
issuance of new investment units.
(Note 3) Yoshihiro Jozaki, Executive Officer, does not receive any compensation from JPR.

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 37th fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration, etc. concerning unitholders' list, etc.)

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

3737

Asset Management Report

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset Type36th Fiscal Period(as of December 31, 2019

Area

37th Fiscal Period(as of June 30, 2020)

Central Tokyo

Assets owned by JPR(thousands of yen)
86,968,578

Percentage of total
assets (%)
19.2

Assets owned by JPR(thousands of yen)
86,819,253

Percentage of total
assets (%)
18.3

Greater Tokyo

59,930,822

13.2

73,502,522

15.5

Other Cities

20,024,036

4.4

19,931,527

4.2

Central Tokyo

155,925,261

34.4

155,957,161

33.0Greater Tokyo

49,886,624

11.0

49,682,380

10.5

Other Cities

41,767,339

9.2

45,732,351

9.7

Deposits and otherassets–38,965,069
(–)

8.6
(–)

41,561,611
(–)

8.8
(–)

Total assets–

453,467,733(414,502,663)

100.0(91.4)

473,186,809(431,625,198)

100.0(91.2)

Real estate

Real estate in trust(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheets as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 37th fiscal period.
Occupancy Rate(%)

Rate of Monthly
Contracted Rent at
End of Period (%)

Asset Class

11,034.78

100.0

11.4

Office23,987.40

23,987.40

100.0

6.1

Office8,865.71

8,688.66

98.0

3.2

Office18,457,305

5,971.73

5,932.26

99.3

2.5

OfficeBYGS Shinjuku Bldg.

15,297,743

15,227.80

15,170.47

99.6

3.7

OfficeJPR Sendagaya Bldg.

14,751,113

6,177.74

6,177.74

100.0

1.8

OfficeKanematsu Bldg.

14,589,980

8,090.42

8,090.42

100.0

2.5

OfficeSencity Bldg.

13,967,911

13,271.20

13,224.89

99.7

2.8

OfficeShinjuku Square Tower

13,105,982

19,266.38

19,266.38

100.0

2.8

OfficeKawasaki Dice Bldg.

13,029,130

12,106.71

12,106.71

100.0

2.6

Retail, etc.

190,195,491

123,999.87

123,679.71

99.7

39.4

Book Value(thousands of yen)

Leasable Floor
Space (m2)Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

Olinas Tower

26,482,095

Shinjuku Center Bldg.

22,125,968

Tokyo Square Garden

Property Name

Total

Leased Floor
Space (m2)(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.
(Note 2) The tenants of Shinjuku Center Bldg., Tokyo Square Garden, Sencity Bldg., Shinjuku Square Tower and Kawasaki Dice Bldg. have sublet space to a sub-lessee
and a lease agreement has been executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, theleasable floor space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

3838

Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 37th fiscal period (June 30, 2020).
Area Type

Property Name
Kanematsu Bldg.

17-5 Kyobashi 2-chome, Chuo-ku, Tokyo

JPR Ningyo-cho Bldg.

17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo

Shin-Kojimachi Bldg.

3-3 Kojimachi 4-chome, Chiyoda-ku, TokyoJPR Crest Takebashi Bldg.

21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo

Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower

OfficeBYGS Shinjuku Bldg.

Retail, etc.

14,589,980

14,900,000

2,419,183

3,500,000

2,101,418

2,890,000

2,422,161

4,240,000

3,209,330

3,770,000

10,853,230

15,000,000

2,981,522

4,150,000

5,266,128

4,820,000

2,767,696

5,450,000

13,105,982

14,700,000

15,297,743

21,100,000

Real estate

575,547

777,000

Real estate

22,125,968

17,600,000

Real estate

3,786,791

3,050,000

Shinagawa Canal Bldg.

Real estate

1,881,741

2,380,000

Rokubancho Bldg.

2-9, etc., Rokubancho, Chiyoda-ku, Tokyo

2,913,204

3,590,000

JPR Harajuku Bldg.

17-11 Jingumae 6-chome, Shibuya-ku, Tokyo

Real estate
Beneficiaryinterest
Beneficiaryinterest
Real estate

8,727,021

11,100,000

4,858,764

6,800,000

14,751,113

11,900,000

Shinjuku Center Bldg.

JPR Sendagaya Bldg.

11-12 Nihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
23-5 Sendagaya 4-chome, Shibuya-ku, Tokyo

Ginza Sanwa Bldg.
Otemachi Tower (Land with
Leasehold Interest)

6-1 Ginza 4-chome, Chuo-ku, Tokyo
6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Tokyo

Science Plaza-Yonbancho Plaza

9-6, etc., Yonbancho, Chiyoda-ku, Tokyo

Shibadaimon Center Bldg.

10-11 Shibadaimon 1-chome, Minato-ku,
TokyoTokyo Square Garden

1-1 Kyobashi 3-chome, Chuo-ku, TokyoJPR Kojimachi Bldg.

6-1 Kojimachi 5-chome, Chiyoda-ku, Tokyo

JPR Nihonbashi-horidome Bldg.

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

3,685,081

3,690,000

38,388,259

51,800,000

2,761,759

3,310,000

4,154,477

6,170,000

18,457,305

21,400,000

5,819,713

6,420,000

11,437,339

13,800,000

4,256,552

4,240,000

JPR Shibuya Tower Records Bldg.

22-14 Jinnan 1-chome, Shibuya-ku, TokyoJPR Jingumae 432

32-13 Jingumae 4-chome, Shibuya-ku, Tokyo

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.

1-26, Shinjuku 3-chome, Shinjuku-ku, Tokyo

Beneficiaryinterest
Beneficiaryinterest
Real estate

2,562,871

2,700,000

7-1 Yurakucho 2-chome, Chiyoda-ku, Tokyo

Real estate

3,284,285

3,240,000

5-14 Ginza 5-chome, Chuo-ku, Tokyo
20-8 Kanda Misakicho 2-chome, Chiyoda-ku,
TokyoReal estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

10,135,189

11,000,000

3,199,046

3,480,000

4,211,678

6,880,000

2,194,457

1,820,000

2,388,598

2,340,000

1,416,181

2,330,000

7,338,905

9,940,000

3-5 Matsugaya 1-chome, Taito-ku, Tokyo

Real estate

2,915,764

5,380,000

38-5 Akebonocho 2-chome, Tachikawa,Tokyo
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yokohama, Kanagawa
1-3 Taihei 4-chome, Sumida-ku, Tokyo

Beneficiaryinterest

2,865,093

4,470,000

Real estate

5,149,666

9,510,000

Real estate

5,279,141

7,220,000

Real estate

26,482,095

40,000,000

FUNDES Suidobashi
Arca East

2-1 Kinshi 3-chome, Sumida-ku, TokyoJPR Chiba Bldg.

1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba

JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office13-23 Shibaura 4-chome, Minato-ku, Tokyo
8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estateAppraisal ValueBook Valueas of June 30, 2020
as of June 30, 2020
(thousands of yen)(thousands of yen)
(Note)

16-14 Shinkawa 1-chome, Chuo-ku, Tokyo
25-1 Nishi-Shinjuku 1-chome, Shinjuku-ku,
Tokyo
12-3 Minami-Azabu 2-chome, Minato-ku,
Tokyo
12-33 Konan 2-chome, Minato-ku, Tokyo

Across Shinkawa Bldg. Annex

Minami Azabu Bldg.

Central Tokyo

14-1 Kyobashi 2-chome, Chuo-ku, Tokyo

Kanematsu Bldg. Annex

MS Shibaura Bldg.

Greater Tokyo

Location

Form ofOwnership

Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower

17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama

39
39

Asset Management Report

Area Type

Property Name

OfficeTokyo Tatemono Yokohama Bldg.
Omiya Prime East

Tanashi ASTA
Cupo-la Main Bldg.
Retail, etc.

Greater Tokyo

Sencity Bldg.

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.

OfficeOther Cities

Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.

Retail, etc.

Minami Semba Bldg.

Form ofOwnership

5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1000, etc., Shinmachi, Chuo-ku, Chiba-shi,
Chiba,

Real estate

7,110,158

9,630,000

Beneficiaryinterest

5,607,568

9,640,000

1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa
3-1 Bessho 7-chome, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
2-4 Ueno 7-chome, Taito-ku, Tokyo
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka
11-28 Minamisemba 4 chome, Chuo-ku,
Osaka

JPR Umeda Loft Bldg.

16-7 Chayamachi, Kita-ku, Osaka, Osaka

Housing Design Center Kobe

2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo

JPR Chayamachi Bldg.
Total

Appraisal ValueBook Valueas of June 30, 2020
as of June 30, 2020
(thousands of yen)(thousands of yen)
(Note)

Location

2-19 Chayamachi, Kita-ku, Osaka, Osaka

Real estate

13,967,911

14,600,000

Beneficiaryinterest

7,103,322

11,000,000

Real estate

1,625,325

2,970,000

Real estate

7,175,445

5,540,000

3,527,443

4,300,000

13,029,130

16,300,000

3,797,012

4,000,000

1,594,023

2,270,000

4,359,595

3,580,000

2,901,308

3,980,000

1,647,800

2,150,000

2,331,845

4,620,000

1,315,072

1,670,000

2,019,931

3,640,000

2,128,683

3,530,000

Real estate

3,787,311

3,390,000

Real estate

10,093,857

20,100,000

5,184,689

4,670,000

Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

3,782,236

4,010,000

12,477,807

14,200,000

Real estate

6,050,357

7,660,000

Beneficiaryinterest

5,989,355

8,320,000

431,625,198

538,627,000(Note) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

4040

Japan Prime Realty Investment Corporation

The following table provides changes in rental business results for each of JPR’s real estate properties and beneficiary interests in realestate.

OfficeOfficeRetail,etc.

Other Cities

Retail, etc.

Greater Tokyo

Retail, etc.

Central Tokyo

OfficeArea Type

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
Minami Semba Bldg.
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

36th Fiscal Period
37th Fiscal Period(from Jul. 1, 2019 to Dec. 31, 2019)(from Jan. 1, 2020 to Jun. 30, 2020)
RentalRentalRatio to Number
Ratio toNumber of Occupancy Revenues
Occupancy Revenues
Total of Tenants
Total
Tenants at Rate at throughout
Rate atthroughout
Rental at Period
RentalPeriod End Period End
PeriodPeriod End
PeriodRevenues
End
Revenues(Note 1)(%)(thousands(%)(thousands(%)(Note 1)(%)
of yen)of yen)11
100.0
393,386
2.5
11
100.0
422,1092.6
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
94,7670.6
5100.0
94,1820.6
17100.0
116,015
0.7
17
100.0
117,3010.7
8
100.0
112,7130.7
8100.0
124,016
0.8
10
100.0
468,088
2.9
10
100.0
469,4692.9
2100.0
136,9170.9
2100.0
133,583
0.8
10
100.0
152,421
1.0
10
100.0
156,0571.0
2
100.0
195,0751.2
2
100.0
203,274
1.2
23
100.0
413,294
2.6
23
100.0
432,5072.6
23
99.6
615,8513.8
23
99.6
615,9563.8
4100.0
37,3080.2
4100.0
37,2410.2
34
98.0
518,1473.2
35
98.0
526,4273.2
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
6
100.0
74,6430.5
6
100.0
73,9460.5
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)9
100.0
299,9951.9
9100.0
305,0141.9
5100.0
192,1691.2
5
100.0
188,9071.2
7100.0
293,0191.8
7
100.0
297,7271.8
9
100.0
120,9450.8
9100.0
117,673
0.7
2

100.0

1,774,000

11.1

2

100.0

1,783,500

10.9

23
9
46
6
1
7
1

95.8
100.0
100.0
95.5
100.0
100.0
100.0

113,931
188,793402,309161,357(Note 2)88,757(Note 2)

0.7
1.2
2.5
1.0
(Note 2)0.6
(Note 2)

25
9
45
6
1
7
1

100.0
100.0
99.3
100.0
100.0
100.0
100.0

117,366
188,508
421,164
151,792(Note 2)
84,640(Note 2)

0.7
1.2
2.6
0.9
(Note 2)0.5
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

9
6
6
38
18
20
42
10
24
1
40
16
22
4
－
1
1
1
3
29
10
10
8
43
21
14
15
15
12
5
15
10
－
1
1

100.0
100.0
100.0
96.3
100.0
98.1
97.2
100.0
98.0
100.0
100.0
100.0
100.0
100.0
－
100.0
100.0
100.0
100.0
99.6
100.0
100.0
94.4
100.0
100.0
98.1
98.3
98.3
100.0
99.5
99.9
100.0
－
100.0
100.0

209,279
101,776
265,311
136,176
129,337
107,607445,811
179,147
153,076(Note 2)
338,295
1,029,072
302,688
280,519－(Note 2)
(Note 2)
(Note 2)
127,041
517,330
124,134
124,885
154,159
168,793
106,039
189,277
108,207
120,321
133,943
154,321545,285
131,698－(Note 2)
(Note 2)
171,154
16,005,870

1.3
0.6
1.7
0.9
0.8
0.7
2.8
1.1
1.0
(Note 2)
2.1
6.4
1.9
1.8
－
(Note 2)
(Note 2)
(Note 2)
0.8
3.2
0.8
0.8
1.0
1.1
0.7
1.2
0.7
0.8
0.8
1.0
3.4
0.8
－
(Note 2)
(Note 2)
1.1
100.0

9
6
6
38
18
21
44
10
24
1
43
16
22
4
71
1
1
1
3
31
10
10
8
41
20
15
16
15
11
5
15
9
13
1

100.0
100.0
100.0
97.6
100.0
100.0
100.0
100.0
100.0
100.0
99.1
100.0
100.0
100.0
99.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.3
97.9
97.9
99.7
98.3
100.0
92.1
99.5
99.9
100.0
99.9
100.0

200,662
81,695
265,400
132,712
127,852
108,539455,020
177,964
151,894(Note 2)
332,156
1,030,176
290,377
282,934
249,530(Note 2)
(Note 2)
(Note 2)
127,041435,792
104,082
125,004
151,990
171,898
108,668
188,587
111,133
119,748
132,062
152,871553,792
132,847
111,619(Note 2)
(Note 2)
165,453
16,363,494

1.2
0.5
1.6
0.8
0.8
0.7
2.8
1.1
0.9
(Note 2)
2.0
6.3
1.8
1.7
1.5
(Note 2)
(Note 2)
(Note 2)
0.8
2.7
0.6
0.8
0.9
1.1
0.7
1.2
0.7
0.7
0.8
0.9
3.4
0.8
0.7
(Note 2)
(Note 2)
1.0
100.0

5

760

100.0

99.6

1
5

851

100.0
100.0

99.7

4141

Asset Management Report(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg., Sencity Bldg. and Kawasaki Dice Bldg.: 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.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg.,
Sencity Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates inaccordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above. There
were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of the 37th
fiscal period.

4242

Japan Prime Realty Investment Corporation

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for renovation works, etc. planned as of the end of the 37th fiscal period for JPRowned real estate and entrusted real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses
include portions that are classified as expenses in accounting.

Property Name

Location

Yokohama,
Kanagawa
Shinjuku-ku,
BYGS Shinjuku Bldg.
Tokyo
JPR Nagoya Fushimi
Nagoya, Aichi
Bldg.
Tokyo Tatemono
Yokohama Bldg.

JPR Chiba Bldg.
JPR Harajuku Bldg.
JPR Ichigaya Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.

Chiba, Chiba
Shibuya-ku,
Tokyo
Chiyoda-ku,
Tokyo
Minato-ku,
TokyoShinagawa-ku,
Tokyo

JPR Umeda Loft Bldg. Osaka, Osaka
Tokyo Tatemono
Honmachi Bldg.

Osaka, Osaka

Minami Azabu Bldg.

Minato-ku,
TokyoTokyo Tatemono
Osaka, Osaka
Honmachi Bldg.
JPR Ningyo-cho Bldg. Chuo-ku, Tokyo

PurposePlanned (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 37th
Paid
Fiscal Period

Schedule

Repair of exterior walls

Jul. 2020–Dec. 2020

400

–

–

Mar. 2020–Dec. 2021

202

–

–

Dec. 2019–Jul. 2020

72

–

–

Aug. 2020–Mar. 2021

71

–

–

Renovation of the entrance hallAug. 2020–Nov. 2020

64

–

–

Replacement of air conditioning units

Feb. 2020–Jul. 2020

55

–

–

Aug. 2020–Dec. 2020

44

–

–

Aug. 2020–Nov. 2020

37

–

–

Sep. 2020–Dec. 2020

37

–

–

Sep. 2020–Nov 2020

36

–

–

Replacement of air conditioning units

May 2020–Jul. 2020

34

–

–

Rooftop waterproofing

Aug. 2020–Dec. 2020

33

–

–

Reinforcement of elevators

Apr. 2020–Nov. 2020

33

–

–

1st through 3rd phases of reinforcement ofelevators
Replacement of outdoor mechanical parking
systems
1st through 2nd phases of reinforcement ofelevators

Replacement of lighting equipment with LED
lamps on 3rd and 4th floors
1st phase of replacement of power receiving andtransforming facilities
Cold- and hot-water pipe replacement for air
conditioning units
Replacement of distribution boards andreplacement of lighting equipment with LED
lamps on 4th and 9th floors(2) Capital Expenditures during the 37th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 37th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas with the aim of attracting new tenants, among other works. In addition, aside from these
constructions, JPR conducted construction of 618 million yen (Note), which was appropriated as expenditures for repair andmaintenance.
Property Name

Location

Gotanda First Bldg.

Shinagawa-ku, Tokyo

JPR Naha Bldg.

Naha, Okinawa

JPR Nihonbashi-horidome
Bldg.

Chuo-ku, Tokyo

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

JPR Naha Bldg.

Naha, Okinawa

Niigata Ekinan Center Bldg.

Niigata, Niigata

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Yakuin Business Garden

Fukuoka, Fukuoka

Other Properties

Purpose

PeriodReplacement of toilets, etc. on 1st
basement floor and 6th through 11th
Nov. 2019–Jun. 2020
floors
3rd phase of replacement of toilets
Jan. 2020–Jun. 2020and hot-water supply rooms
2nd phase of replacement of air
Feb. 2020–May 2020
conditioning units
Replacement of toilets on 2nd
Jan. 2020–Jun. 2020
through 7th floors
Repair of exterior walls and rooftop
Jan. 2020–Jun. 2020
Replacement of lighting equipmentwith LED lamps on 5th through 10th
Jan. 2020–Mar. 2020
floors
6th phase of replacement of air
Oct. 2019–Mar. 2020
conditioning units
Renovation of smoking rooms tocomply with the Health Promotion
May 2020–Jun. 2020
Act
Replacement of air conditioning units, repair of common areas,
replacement of lighting equipment with LED lamps, etc.
Total

Construction
Expenses(millions of yen)
106
90
84
79
78
43
40
38
819
1,380

(Note) Expenditures for repair and maintenance included 15 million yen of construction management fees paid to construction management companies as well as the amounts
for repair and maintenance constructions themselves.

4343

Asset Management Report(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.
Operation Period
Balance of deposits at
beginning of current period
Deposits during the period
Amounts used from
deposits during the period
Deposits carried forward to
the next period

4444

33rd Fiscal Period(Jan. 1, 2018 Jun. 30, 2018)

34th Fiscal Period(Jul. 1, 2018 Dec. 31, 2018)

1,178
821

(Millions of yen)

35th Fiscal Period(Jan. 1, 2019 Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 Jun. 30, 2020)

1,215

1,222

1,319

1,310

624

1,038

997

939

784

617

941

1,006

825

1,215

1,222

1,319

1,310

1,424

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
36th Fiscal Period(Jul 1, 2019 - Dec. 31, 2019)

Item

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)(a) Asset Management Fees (Note 1)

569,134

711,694

Management fee 1 (Note 2)

75,000219,760

Management fee 2 (Note 2)

280,189

196,955

Management fee 3 (Note 2)

213,945294,979(b) Administrative Service and Custodian Fees

79,051

78,674(c) Directors' Fee

5,066

4,200

(d) Trust Fees

23,752

22,812(e) Other Expenses
Total

105,262

96,617782,268

914,000(Note 1) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (37th fiscal period: 88,100 thousandyen) have been paid and included in the book value of each property.
(Note 2) For the 36th fiscal period, Management fee 1, Management fee 2 and Management fee 3 shall be replaced with Fixed compensation, Incentive-based compensation
1 and Incentive-based compensation 2, respectively.

(2) Status of Loans Payable
As of June 30, 2020 JPR has the following loans payable.

Long-Term Loans Payable

Short-Term
Loans
PayableCategory

LenderMizuho Bank Ltd. (Note 4)
Total

Drawdown
Date

Balance asof Jan. 1,
2020(millionsof yen)

Dec. 5, 2019

1,000

－

0.169

1,000

－Balance as
Averageof Jun. 30, interest Rate
Repayment
2020
(%)
Date
(millions(Note 1)of yen)
(Note 2)Jul. 3, 2020


Repayment
MethodUseRemarks

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteedon maturityMizuho Bank Ltd.

Nov. 27, 2013

3,000

3,000

0.970 Nov. 27, 2020

Mizuho Bank Ltd.

Jun. 27, 2014

5,000

5,000

1.178 Jun. 27, 2023

Mizuho Bank Ltd.

Mar. 11, 2015

2,000

2,000

1.011 Mar. 11, 2024

Mizuho Bank Ltd.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Mizuho Bank Ltd.

Feb. 4, 2016

5,000

5,000

0.804 Feb. 4, 2026

Mizuho Bank Ltd.

Mar. 30, 2017

3,000

3,000

0.351 Mar. 30, 2021

Mizuho Bank Ltd.

Mar. 30, 2017

4,000

4,000

0.400 Mar. 30, 2022

Mizuho Bank Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Mizuho Bank Ltd.

Dec. 5, 2019

2,000

2,000

0.646 Dec. 5, 2029

MUFG Bank, Ltd.

Nov. 27, 2013

3,000

3,000

0.970 Nov. 27, 2020

MUFG Bank, Ltd.

Jun. 27, 2014

4,000

4,000

0.889 Jun. 25, 2021

MUFG Bank, Ltd.

Aug. 31, 2015

1,000

1,000

MUFG Bank, Ltd.

Mar. 25, 2016

5,000

5,000

Principal lump
Unsecured/
0.873 Aug. 31, 2023 sum repayment (Note 3)
Unguaranteedon maturity
0.510 Mar. 25, 2024

MUFG Bank, Ltd.

Dec. 15, 2016

2,000

2,000

0.633 Dec. 13, 2024

MUFG Bank, Ltd.

Aug. 8, 2017

1,000

1,000

0.638 Aug. 8, 2025

MUFG Bank, Ltd.

Aug. 29, 2017

5,000

5,000

0.600 Aug. 29, 2025

MUFG Bank, Ltd.

Sep. 5, 2017

3,000

3,000

0.593 Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

Jun. 27, 2013

3,000

－

1.265 Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

2,500

1.033 Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

2,000

2,000

0.351 Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

4,000

4,000

0.400 Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

Dec. 5, 2019

1,000

1,000

0.245 Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

Jun. 26, 2020

－

3,000

0.300 Jun. 26, 2025

4545

Asset Management Report

Long-Term Loans PayableCategory

4646

LenderDrawdown
Date

Balance asof Jan. 1,
2020(millionsof yen)

Balance as
Averageof Jun. 30, interest Rate
Repayment
2020
(%)
Date
(millions(Note 1)of yen)
(Note 2)Development Bank of Japan, Inc.

Jun. 27, 2013

820

820

1.449 Jun. 25, 2021

Development Bank of Japan, Inc.

Dec. 5, 2013

2,000

2,000

1.188 Dec. 3, 2021

Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15, 2016

3,000

3,000

0.843 Jun. 14, 2027

Development Bank of Japan, Inc.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Development Bank of Japan, Inc.

Jun. 27, 2019

2,100

2,100

0.572 Jun. 27, 2029

Shinsei Bank, Ltd.

Sep. 24, 2013

2,000

2,000

1.076 Sep. 24, 2020

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134 Dec. 5, 2024

Shinsei Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.843 Jun. 14, 2027

Shinsei Bank, Ltd.

Apr. 5, 2019

5,000

5,000

0.673 April 5, 2029

Shinkin Central Bank

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

Shinkin Central Bank

Dec. 5, 2018

3,000

3,000

0.663

Shinkin Central BankJun. 27, 2019

2,000

2,000

0.447 Dec. 27, 2027

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2016

2,000

2,000

0.480

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

Sep. 24, 2019

1,000

1,000

0.554 Sep. 21, 2029

The Bank of Fukuoka, Ltd.

Jan. 30, 2020

－

1,000

0.598 Jan. 30, 2030

Aozora Bank Ltd.

Sep. 30, 2013

1,000

1,000

1.069 Sep. 24, 2020
0.625

Repayment
MethodUseRemarks

Jun. 4, 2027

Aozora Bank Ltd.

Jul. 3, 2017

900

900

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.534 Aug. 23, 2024

Jul. 3, 2025

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.574 Feb. 25, 2025

Aozora Bank Ltd.

Aug. 30, 2018

2,000

2,000

0.553 Feb. 25, 2025

The Norinchukin Bank

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

0.604

The Norinchukin BankJun. 27, 2019

2,000

2,000

0.405 Jun. 25, 2027

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

－

1.076

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2017

4,000

－

0.309 Mar. 30, 2020

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2020

－

3,000

0.586

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2020

－

2,000

0.606 Mar. 29, 2030

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Jun. 5, 2025

Feb. 4, 2020Feb. 4, 2030

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813 Jun. 21, 2028

Sumitomo Life Insurance Company

Oct. 11, 2016

2,000

2,000

0.453 Oct. 11, 2024

Sumitomo Life Insurance Company

Jul. 22, 2019

1,000

1,000

0.583 Jul. 20, 2029

Sumitomo Life Insurance Company

Jan. 30, 2020

－

1,000

0.598 Jan. 30, 2030

The Shinkumi Federation Bank

Feb. 5, 2018

4,000

4,000

0.404 Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646 May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.388 Dec. 14, 2021

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011 Dec. 25, 2020

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

0.969 Sep. 4, 2024

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Jun. 5, 2028
Oct. 6, 2023

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

The Chugoku Bank, Ltd.

Sep. 25, 2018

1,000

1,000

0.661 Mar. 25, 2026

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

The Iyo Bank, Ltd.

Jan. 30, 2020

－

1,000

0.598 Jan. 30, 2030

National Mutual Insurance Federationof Agricultural Cooperatives

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

Oct. 6, 2023

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteedon maturityJapan Prime Realty Investment Corporation

Long-Term Loans PayableCategory

Balance asof Jan. 1,
2020(millionsof yen)

DrawdownDate

Lender

Balance as
Averageof Jun. 30, interest Rate
Repayment
2020
(%)
Date
(millions(Note 1)of yen)
(Note 2)Sompo Japan Insurance Inc. (Note 5)

Dec. 25, 2015

2,000

2,000

0.759 Dec. 25, 2023

Nippon Life Insurance Company

Nov. 22, 2019

2,000

2,000

0.225 Nov. 22, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.489

The Hachijuni Bank, Ltd.

Sep. 26, 2016

1,000

1,000

0.209 Sep. 24, 2021

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

The Yamaguchi Bank, Ltd.

Jan. 30, 2020

－

1,000

0.598 Jan. 30, 2030

Resona Bank, Ltd.

Mar. 30, 2017

2,000

2,000

0.438 Sep. 30, 2022

NTT FINANCE CORPORATION

May 31, 2018

1,000

1,000

0.408 May 31, 2023

The Kiyo Bank, Ltd.

Jan. 30, 2020

－

1,000

Repayment
MethodUseRemarksOct. 9, 2020

The 77 Bank, Ltd.

May 31, 2018

1,000

1,000

The Daishi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.598 Jan. 30, 2030 Principal lump
Unsecured/
0.408 May 31, 2023 sum repayment (Note 3) Unguaranteedon maturity
0.396 Nov. 21, 2022

Daido Life Insurance Company

Dec. 27, 2018

1,000

1,000

0.316 Dec. 25, 2023

The Chiba Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.449 Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Dec. 27, 2018

1,000

1,000

0.299 Jun. 27, 2023

The Hyakugo Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.582 Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited

Oct. 4, 2019

1,000

1,000

0.310

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691 Mar. 25, 2026

Total



157,520

160,520

Oct. 2, 2026











(Note 1) The average interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 4) JPR made early repayment of the 1,000 million yen in short-term loans payable on January 30, 2020, which was borrowed on December 5, 2019 from Mizuho
Bank, Ltd.
(Note 5) Sompo Japan Nipponkoa Insurance Inc. changed its name to Sompo Japan Insurance Inc. as of April 1, 2020.

(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of June 30, 2020 are as follows.
Name

Issue Date

Seventh Series ofInvestment Corporation Bonds

Dec. 14, 2006

Eighteenth Series of Investment
May 31, 2013
Corporation Bonds
Nineteenth Series of Investment
Feb. 5, 2014
Corporation Bonds
Twenty-first Series of Investment
Jul. 22, 2014
Corporation Bonds
Twenty-second Series ofDec. 4, 2014
Investment Corporation Bonds
Twenty-third Series of Investment
May 31, 2018
Corporation Bonds
Twenty-fourth Series of Investment
July 31, 2019
Corporation Bonds (Green Bonds)
Total

Balance as of
Balance as of
CouponRate
Jan. 1, 2020
June. 30, 2020(%)
(millions of yen) (millions of yen)

Maturity Date

4,500

4,500

2.900

Dec. 14, 2026

2,000

2,000

1.460

May 31, 2023

5,000

5,000

1.110

Feb. 5, 2024

4,000

4,000

1.278

Jul. 22, 2026

3,000

3,000

0.831

Dec. 4, 2024

3,000

3,000

0.550

May 31, 2028

5,000

5,000

0.570

July 31, 2029

26,50026,500

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

(Note 1) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 2) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.

(4) Subscription Rights to Shares
Not applicable4747

Asset Management Report

6. Acquisitions and Sales during the 37th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities
Acquisition
Type of Asset

Sale

Acquisition Date

AcquisitionPrice(millions ofyen)(Note)

Real Estate Name

Sale Date

Sale Price Book Value Difference
Sale
Sale Profit
(A)
(B)
(C)
Expense and Loss(millions of (millions of (A)-(B)(D)(C)-(D)yen)
yen)(millions of (millions (millions of(Note)(Note)
yen)of yen)yen)

Beneficiaryinterest

Minami Semba Bldg.

January 30, 2020

3,750

－

－

－

－

－

－

Real estate

Sencity Bldg.

March 27, 2020

13,870

－

－

－

－

－

－

Total

－

17,620

－

－

－

－

－

－

(Note) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estate transaction
brokerage fees) required for acquisition or sale of the relevant real estate.

(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 37th fiscal period.

(3) Survey on Values of Specified Assets, etc.
Acquisition orType of Asset
Sale

Real Estate NameTransaction Date

Acquisition

Beneficiaryinterest

Minami Semba Bldg.

January 30, 2020

Acquisition

Real estate

Sencity Bldg.

March 27, 2020

Acquisition Price Real Estate
or Sale Price Appraisal Value
Real Estate Appraiser(Note 1)
(Note 2)
(millions of yen) (millions of yen)Japan Real Estate
3,750
3,970
InstituteJapan Real Estate
13,87014,600Institute

Appraisal Date

December 1, 2019
January 1, 2020

(Note 1) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 2) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Real Estate
Subject to Securitization.”(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status(Thousands of yen)Transaction Amount, Etc.

Category
Purchase Amount, Etc.
Total

Sale Amount, Etc.

17,620,000－

Breakdown of transactions with interested parties
Tokyo Tatemono Co., Ltd.
Total

3,750,000(21.3%)－(－%)

3,750,000(21.3%)－(－%)

2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

364,849

Outsourcing Fees

615,760

Tenant Brokerage Fees

37,201

4848

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
274,259
Prime Place Co., Ltd.
22,111
Tokyo Tatemono Co., Ltd.
448,350
Prime Place Co., Ltd.
14,596
Tokyo Tatemono Co., Ltd.
9,320

(Thousands of yen)
Ratio to Total
Amount(B/A))
75.2%
6.1%
72.8%
2.4%
25.1%

Japan Prime Realty Investment Corporation(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 33,447 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or
major shareholders during the 37th fiscal period.
Tokyo Tatemono Co., Ltd.

716,045 thousand yen

Prime Place Co., Ltd.

43,215 thousand yen

Tokyo Real Estate Management Co., Ltd.

350,700 thousand yen

Shinjuku Center Building Management Co., Ltd.

11,866 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

4949

Asset Management Report

7. Overview of Accounting(1) Assets, Liabilities, Principal, and Profits and Loss
Please refer to the Balance Sheets, Statements of Income and Retained Earnings, Statements of Unitholders' Equity and Notes toFinancial Statements as well as Distribution Information on later pages of this report.

(2) Changes in Calculation Method of Depreciation
No change has been made.

(3) Changes in Valuation Method of Real Estate and Infrastructure Assets
No change has been made.

8. Overview of Self-Managed Investment Trust Beneficiary
Certificates(1) Acquisition
Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

–

40

January 22, 2002 (Note)

60

–

100

Accumulated Total

100

–

100

(Note) The acquisition was due to the investment unit split (2.5 units for one existing unit).

(2) Units Held
Number of Units Held at End
of Period
28th Fiscal Period(Jul. 1, 2015 – Dec. 31, 2015)
29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)
30th Fiscal Period(Jul. 1, 2016 – Dec. 31, 2016)
31st Fiscal Period(Jan. 1, 2017 – Jun. 30, 2017)
32nd Fiscal Period(Jul. 1, 2017 – Dec. 31, 2017)
33rd Fiscal Period(Jan. 1, 2018 – Jun. 30, 2018)
34th Fiscal Period(Jul. 1, 2018 – Dec. 31, 2018)35th Fiscal Period(Jan. 1, 2019 – Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 – Jun. 30, 2020)(Note) Total investment at end of period represents the acquisition price.

5050

Total Investment at End of
Period (Note)(millions of yen)

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation Owning Foreign Real Estate
Not applicable

11. Other(1) Notice
Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the 37th fiscal period
include the following:
Date of Board of Directors Meeting

February 14, 2020

Approved Item

Overview

Execution of New Investment Units
Underwriting Agreement, etc.

With regard to the additional issuance of new investment units, theadministrative services related to the offering of these investment units
were outsourced to the underwriters consisting of Mizuho Securities Co.,
Ltd., SMBC Nikko Securities Inc., Nomura Securities Co., Ltd., Daiwa
Securities Co. Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd.

(2) Other
Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis Report on Operating and Management Results.

5151

Financial Statements(1) Balance Sheets(Thousands of yen)
End of 36th Fiscal Period(Dec. 31, 2019)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

25,016,928
12,758,578
246,507
159,405－
15,19827,126,776
12,973,691
289,154
142,036
172,716
15,201

38,196,618

40,719,576

60,602,042(18,920,510)

64,616,121(19,809,897)

41,681,532

44,806,224

Buildings in trust
Accumulated depreciation

93,481,011(35,522,474)

95,176,039(36,554,181)

Buildings in trust, net

57,958,537

58,621,857

58,409(26,812)62,220(28,412)

Buildings, net

Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation

31,59733,807

146,650(88,531)

133,739(80,982)

Structures in trust, net

58,11852,757

Machinery and equipment
Accumulated depreciation

821,773(542,077)

838,393(564,455)

Machinery and equipment, net

279,696

273,937

Machinery and equipment in trust
Accumulated depreciation

1,919,756(1,435,893)

1,929,556(1,464,811)

483,862

464,745

129,582(64,452)

143,061(71,367)

Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

65,12971,694Tools, furniture and fixtures in trust
Accumulated depreciation

232,578(169,599)

252,219(178,396)

62,97973,823Land
Land in trust
Construction in progress
Construction in progress in trust

113,060,949
189,014,043
2,413
2,035

123,264,320
192,157,692
1,219
150

Total property, plant and equipment

402,700,894

419,822,228

11,801,831
3,962

11,801,831
3,573

11,805,793

11,805,404

590,776
43,220612,216
70,319Tools, furniture and fixtures in trust, net

Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

5230

End of 37th Fiscal Period(Jun. 30, 2020)

633,997

682,536

415,140,685

432,310,169

129,512917

119,523
37,540130,429

157,064

453,467,733

473,186,809

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 36th Fiscal Period(Dec. 31, 2019)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*2

End of 37th Fiscal Period(Jun. 30, 2020)

3,379,730
1,000,000
21,000,000
669,920
81,175605
381,254
3,022,445
5,033

2,814,074－
20,820,000
910,146
79,421
605
136,082
3,048,380－

29,540,165

27,808,710

26,500,000
136,520,000
8,049,652
13,588,304

26,500,000
139,700,000
9,378,333
13,961,750

184,657,957

189,540,084

214,198,122

217,348,795

231,653,198

247,860,796

689,444689,444689,444689,4446,926,967

7,287,774

7,616,411

7,977,218

239,269,610

255,838,014

239,269,610
453,467,733*2

255,838,014
473,186,809

53
31

Financial Statements(2) Statements of Income and Retained Earnings(Thousands of yen)
36th Fiscal Period(Jul. 1, 2019 - Dec. 31, 2019)
Operating revenue
Rent revenue-real estate*1

Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management association accounts
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other

*1

7,538,619
569,134
79,051
5,066
23,752
105,262

16,363,494
16,363,494*1

7,436,206
711,694
78,6744,200
22,812
96,6178,320,887

8,350,206

7,684,983

8,013,288

189
4,357
1,527
1,639

195
21,66925,258
4,088

7,713

51,212556,344
27,753
174,899
10,9537,339
221

543,152
23,760167,455
9,988
5,537
37,154

777,510787,050

Ordinary income

6,915,185

7,277,450

Income before income taxes

Total non-operating expenses

6,915,185

7,277,450

Income taxes-current

605

605

Total income taxes

605

605

Net income

6,914,580

7,276,845

Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

12,386
6,926,967

10,9287,287,774

32

54

*1

16,005,870

Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses

16,005,870

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)
36th Fiscal Period(Jul. 1, 2019 - Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

231,653,198

231,653,198

Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period

16,207,597

Issuance of units
Total changes of items during the period
Balance at end of current period－

16,207,597

231,653,198

247,860,796

284,356

689,444

Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry

405,088

Total changes of items during the period

405,088－689,444689,4447,229,214

6,926,967

Dividends from surplus(405,088)(6,811,740)(6,916,039)

Net income

6,914,580

7,276,845

Total changes of items during the period(302,247)

360,806

6,926,967

7,287,774

7,513,570

7,616,411

Balance at end of current period
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry

Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry－

Dividends from surplus(6,811,740)(6,916,039)

Net income

6,914,580

7,276,845

102,840

360,806

Balance at end of current period

7,616,411

7,977,218

Total unitholders' equity
Balance at the beginning of current period

239,166,769

239,269,610

Total changes of items during the period

Changes of items during the period
16,207,597

Issuance of units
Provision of reserve for reduction entry－

Dividends from surplus(6,811,740)

Net income

6,914,580

7,276,845

102,840

16,568,404

239,269,610

255,838,014

239,166,769

239,269,610

Total changes of items during the period
Balance at end of current period(6,916,039)

Total net assets
Balance at beginning of current period
Changes of items during the period

16,207,597

Issuance of units
Provision of reserve for reduction entry－

Dividends from surplus(6,811,740)

Net income

6,914,580

7,276,845

102,840

16,568,404

239,269,610

255,838,014

Total changes of items during the period
Balance at end of current period(6,916,039)

33
55

Financial Statements(4) Statements of Cash Distributions
36th Fiscal Period(Jul. 1, 2019 - Dec. 31, 2019)I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Voluntary reserve
Provision of reserve for reduction entry

IV.

Retained earnings carried forward

Method for calculating distribution amount34

56

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

6,926,967,425 yen
6,916,039,000 yen(7,493 yen)

7,287,774,097 yen
7,277,908,750 yen(7,595 yen)－－

10,928,425 yen

9,865,347 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,916,039,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 7,277,908,750
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (958,250 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)
36th Fiscal Period(Jul. 1, 2019 - Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

6,915,185

7,277,450

1,974,265
10,9532,027,993
9,988

7,339

5,537

Interest expenses(189)
731,243(195)
710,608

Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable

139,330－(42,646)(172,716)

Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable(20,526)

17,368

Increase (decrease) in accounts payable-other

76,706(69,756)(178,048)
240,609

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received

250,962
161,598(245,172)25,934

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income

Other, net(72,891)

3,184

Subtotal

10,104,222

9,679,895

189

195

Interest expenses paid
Income taxes (paid) refund(720,320)(712,361)

(606)

(605)

Net cash provided by (used in) operating activities

9,383,485

8,967,123

Purchase of property, plant and equipment in trust(429,256)(649,786)(14,685,251)(4,888,250)

Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits(45,918)(206,466)(21,440)(73,346)

Interest income received

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment

Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities

157,687

1,402,591(239,597)
387,903(55,383)
428,829(1,025,434)(17,892,251)

Net cash provided by (used in) financing activities
Proceeds from short-term loans payable

4,000,000－

Repayment of short-term loans payable
Proceeds from long-term loans payable(5,000,000)
8,000,000(1,000,000)
13,000,000

Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds(8,000,000)(10,000,000)

4,960,579(4,000,000)－－

Dividends paid－
(6,810,234)

16,165,436(6,915,347)

Net cash provided by (used in) financing activities(6,849,654)

11,250,088

Redemption of investment corporation bonds
Proceeds from issuance of investment units

Net changes in cash and cash equivalents

1,508,397

2,324,960

Cash and cash equivalents at beginning of current period

36,267,109

37,775,506

Cash and cash equivalents at end of current period*137,775,506*1

40,100,467

35
57

Financial Statements(6) Notes to Financial Statements(Basis of Presenting Financial Statements)
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its financial statements in accordancewith accounting principles generally accepted in Japan (Japanese GAAP), including provisions set forth in the Financial Instruments
and Exchange Act of Japan, the Act on Investment Trusts and Investment Corporations (the Investment Trusts Act), the Companies Act
and the related regulations, which are different in certain respects as to the adoption and disclosure requirements of International
Financial Reporting Standards.
The accompanying financial statements are basically a translation of the audited financial statements of JPR, which were prepared inaccordance with Japanese GAAP and filed with the Kanto Local Finance Bureau. In preparing the accompanying financial statements,
certain reclassifications have been made to the financial statements issued domestically in order to present them in a format which ismore familiar to readers outside Japan. In addition, the notes to financial statements include information which might not be required
under Japanese GAAP but is presented herein as additional information.
JPR’s accounting periods end at the end of June and December.

(Significant Accounting Policies)
1. Depreciation/Amortization
Method for Long-lived Assets

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

4. Scope of Cash and Cash
Equivalents in the Statements ofCash Flows
5. Other Significant Items
Fundamental to the Preparation of
Financial Statements

3658(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years basedon the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR uses
the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses related
to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the purchase cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized were nil forthe fiscal period ended December 31, 2019, and amounted to 52,474 thousand yen for the fiscal period ended June30, 2020.
Cash and cash equivalents in the Statements of Cash Flows include the following items(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the balance
sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately presented in the balance sheets for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
Revenues and expenses in the Statements of Income and Retained Earnings do not include consumption taxes.

Japan Prime Realty Investment Corporation(Notes to Accounting Standards Not Yet Adopted)
・ Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 (revised 2020) issued by the Accounting Standards Boardof Japan (ASBJ) on March 31, 2020)
・ Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 (revised 2020) issued by
ASBJ on March 31, 2020)
・ Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19 (revised 2020) issued
by ASBJ on March 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed acomprehensive accounting standard for revenue recognition, and issued it as Revenue from Contracts with Customers (IFRS 15
issued by IASB and Topic 606 issued by FASB) in May 2014. The IFRS 15 is applicable for accounting periods beginning on
January 1, 2018 and thereafter, and the Topic 606 is applicable for accounting periods beginning after December 15, 2017. In
accordance with this, the ASBJ has developed a comprehensive accounting standard for revenue recognition and issued it together
with its implementation guidance.
In developing the accounting standard for revenue recognition, the ASBJ made it a basic policy to adopt the basic principles of the
IFRS 15 as a starting point. By doing so, the ASBJ established the accounting standard from the viewpoint of comparability, which
is a benefit for securing consistency with the IFRS 15, between financial statements based on the Japanese GAAP and those basedon other accounting standards. Alternative treatments are also to be added, to the extent that they do not harm the comparability, incases where there are items to be considered in the actual practices conducted in Japan to date.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard, etc. from the beginning of the fiscal period ending December 31, 2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Revenue Recognition, etc. is being assessed at present.
・ Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued by ASBJ on July 4, 2019)・ Accounting Standard for Financial Instruments (ASBJ Statement No. 10 (revised 2019) issued by ASBJ on July 4, 2019)・ Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31 issued by ASBJ on July4, 2019)
・ Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19 (revised 2020) issued
by ASBJ on March 31, 2020)(1) Overview
IASB and FASB have established detailed guidance for fair value measurement (IFRS 13 “Fair Value Measurement” under theInternational Financial Reporting Standards and Topic 820 “Fair Value Measurement” of the Accounting Standards Codification
under the U.S. accounting standards) containing almost the same content. In light of this, the ASBJ worked to secure consistency of
the Japanese accounting standards with the international accounting standards, mainly in terms of the guidance on and disclosure of
the fair value of financial instruments, and announced the Accounting Standard for Fair Value Measurement, etc.
The basic policy of ASBJ for the development of the Accounting Standard for Fair Value Measurement was to adopt all provisionsof the IFRS 13 as a rule by using a unified calculation method, from the viewpoint of improving the comparability between thefinancial statements of the Japanese and foreign companies. Moreover, in consideration of the practices conducted in Japan to date,
ASBJ determined to establish other treatments for individual items, to the extent that they do not greatly harm the comparability
between the financial statements.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standards, etc. from the beginning of the fiscal period ending December 31, 2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Fair Value Measurement, etc. is being assessed at present.
・ Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No. 31 issued by ASBJ on March 31, 2020)(1) Overview
With regard to the "sources of estimation uncertainty" for which disclosure is required under Paragraph 125 of the International
Accounting Standards ("IAS") 1 "Presentation of Financial Statements" ("IAS 1") issued by IASB in 2003, requests were made for
ASBJ to investigate the requirement of disclosure of such information in the form of notes under the Japanese GAAP as useful
information for users of financial statements. Accordingly, ASBJ has developed and published the Accounting Standard forDisclosure of Accounting Estimates (the "Accounting Standard").

3759

Financial Statements

The basic policy of ASBJ for the development of the Accounting Standard was to provide general principles (disclosure objectives),
instead of expanding required information in the notes, and let companies determine specific disclosure contents in light of thedisclosure objectives. In developing the Standard, ASBJ referred to the provisions of the Paragraph 125 of the IAS 1.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard from the end of the fiscal period ending June 30, 2021.
・ Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections (ASBJ Statement No. 24(revised 2020) issued by ASBJ on March 31, 2020)(1) Overview
Given the recommendation to investigate enhancement of note information regarding the "accounting principles and procedures
adopted in cases when provisions of relevant accounting standards are not clear," ASBJ has made necessary amendments andpublished the Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections.
Furthermore, ASBJ has determined that, when enhancing the note information regarding the "accounting principles and procedures
adopted in cases when provisions of relevant accounting standards are not clear," the provisions in the Notes on Corporate
Accounting Principles (Note 1-2) shall be followed as before in order to avoid any impact on the practices taken to date when theprovisions of relevant accounting standards are clear.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard from the end of the fiscal period ending June 30, 2021.

6038

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)
1. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.
(Thousands of yen)
End of 36th Fiscal Period(as of December 31, 2019)Credit limit

End of 37th Fiscal Period(as of June 30, 2020)
24,000,000

Outstanding debts at end of period
Unused commitment line at end of period

24,000,000－－

24,000,000

24,000,000*2 Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 36th Fiscal Period(as of December 31, 2019)

End of 37th Fiscal Period(as of June 30, 2020)
50,00050,000(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business36th Fiscal Period(July 1, 2019 – December 31, 2019)(Thousands of yen)
37th Fiscal Period(January 1, 2020 – June 30, 2020)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents

11,372,402
1,774,000

11,965,339
1,783,500

Common charges

1,567,002

1,554,972

Parking fees
Advertising fees

262,373
36,467

267,620
37,179Antenna usage fees
Other26,17643,38427,60838,18315,081,806

15,674,404

799,897620,296
8,432

Subtotal
Other rental revenues
Incidental rent income
Time-based parking fees
Cancellation charges
Income equivalent to expenses for restoration
to original condition

8,286
21,68662,445

9,088
21,91031,74829,362

Subtotal

924,063

689,090

Total rent revenue-real estate

16,005,870

16,363,416,363,49494005,870
16,363,494

Outsourcing expenses
Utilities expenses

609,389
866,496615,760
712,430

Property and other taxes
Casualty insurance

2,335,893
25,3162,358,609
26,116

Repairs and maintenance
Property management fees

610,360

602,597299,229
570,509331,402573,621

1,973,941
247,482

2,027,669
187,999

7,538,619

7,436,206

8,467,251

8,927,288

Other miscellaneous income

B. Expenses Related to Rent Business

Management association accounts
Depreciation
Other
Total expenses related to rent business
C. Profits for Rent Business
(A-B)

39
61

Financial Statements(Notes to Statements of Changes in Unitholders’ Equity)
36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)

Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

5,000,000 units

5,000,000 units

923,000 units

958,250 units(Notes to Statements of Cash Flows)*1. Reconciliation of the Amounts of the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows with theAmounts of the Corresponding Accounts on the Balance Sheets(Thousands of yen)
36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)

Cash and deposits

25,016,928

27,126,776

Cash and deposits in trust

12,758,578

12,973,691

Cash and cash equivalents

37,775,506

40,100,467(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)

36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)

Due within one year

5,468,297

6,515,890

Due after one year

9,625,164

13,215,936

Total

15,093,461

19,731,827(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of short-term
funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but the liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby the financial division.

40

62

Japan Prime Realty Investment Corporation(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
The fair value of financial instruments, aside from values based on market price, include values based on reasonable calculations
when there is no market price. Certain assumptions are used in calculating those values and there may be cases where the values
will vary when different assumptions are used.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of December 31, 2019 of financial instruments, and the difference between
these amounts. Please note that the following table does not include those for which discerning of fair value is recognized to be
extremely difficult (please refer to Note 3).
(Thousands of yen)

Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

25,016,928

25,016,928－(2)

Cash and deposits in trust

12,758,578

12,758,578－(3)

Short-term loans payable(1,000,000)(1,000,000)－(4)

Current portion of long-term loans payable(21,000,000)(21,091,412)

91,412(5)

Investment corporation bonds(26,500,000)(27,732,745)

1,232,745(6)

Long-term loans payable(136,520,000)(138,243,341)

1,723,341

The following are the carrying values and fair values as of June 30, 2020 of financial instruments, and the difference between theseamounts. Please note that the following table does not include those for which discerning of fair value is recognized to be extremely
difficult (please refer to Note 3)(Thousands of yen)

Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

27,126,776

27,126,776－(2)

Cash and deposits in trust

12,973,691

12,973,691－(3)

Short-term loans payable

－

－

－

(4)

Current portion of long-term loans payable(20,820,000)(20,896,871)

76,871(5)

Investment corporation bonds(26,500,000)(27,476,144)

976,144(6)

Long-term loans payable(139,700,000)(141,351,070)

1,651,070(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the fair value is approximately the same as the carrying value and is thus stated at thatcarrying value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the carrying value and is thus stated at that carrying value.
(4) Current portion of long-term loans payable, and (6) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount of principal and interests
are discounted by the rate assumed as being applicable in the event of a new drawdown whose term is corresponding to the remaining loan term.
(5) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are measured based on market price and those with no market price are calculated inaccordance with (4) and (6) above.
(Note 3) Financial instruments for which discerning of fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since it is difficult
to estimate the actual lease term. The following is the carrying value of tenant leasehold and security deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
Category

End of 36th Fiscal Period(as of December 31, 2019)

End of 37th Fiscal Period(as of June 30, 2020)

Tenant leasehold and security deposits

8,049,652

9,378,333

Tenant leasehold and security deposits in trust

13,588,304

13,961,750

41
63

Financial Statements(Note 4) Scheduled redemption of monetary claims to be due subsequent to the 36th fiscal period end (December 31, 2019)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

25,016,928

－

－

－

－

－

Cash and deposits in trust

12,758,578

－

－

－

－

－

Scheduled redemption of monetary claims to be due subsequent to the 37th fiscal period end (June 30, 2020)(Thousands of yen)

(Note 5)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Cash and deposits

27,126,776

－

－

－

－

－

Cash and deposits in trust

12,973,691

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due subsequent to
the 36th fiscal period end (December 31, 2019)(Thousands of yen)

Short-term loans payable

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

1,000,000

－

－

－

－

－

－

－

－

2,000,000

8,000,000

16,500,000

21,000,000

19,820,000

18,500,000

21,000,000

15,000,000

62,200,000

Investment corporation bonds
Long-term loans payable

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due subsequent to the37th fiscal period end (June 30, 2020)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Short-term loans payable

－

－

－

－

－

－

Investment corporation bonds－－

2,000,000

5,000,000

3,000,000

16,500,000

20,820,000

20,500,000

16,000,000

20,000,000

21,000,000

62,200,000Long-term loans payable(Securities)
36th fiscal period (as of December 31, 2019)
Not applicable
37th fiscal period (as of June 30, 2020)
Not applicable(Derivative Transactions)
36th fiscal period (as of December 31, 2019)
Not applicable as JPR entered into no derivative transactions
37th fiscal period (as of June 30, 2020)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
36th fiscal period (as of December 31, 2019)
Not applicable as JPR does not have any retirement benefit plans
37th fiscal period (as of June 30, 2020)
Not applicable as JPR does not have any retirement benefit plans

6442

Due after FourYears throughFive Years

Due after Five
Years

Japan Prime Realty Investment Corporation(Tax Effect Accounting)
1. Breakdown of Main Items that Caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting

36th Fiscal Period(July 1, 2019 – December 31, 2019)

Effective statutory tax rate

37th Fiscal Period(January 1, 2020 – June 30, 2020)

31.51%

31.46%(Adjustment)(31.51%)(31.46%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Deductible cash distributions(Equity Method Income and Retained Earnings)
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable as JPR does not have any affiliated companies
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
2. Affiliated Companies
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
3. Sister Companies
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
4. Directors and Major Individual Unitholders
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable(Asset Retirement Obligations)
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable43
65

Financial Statements(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rent business.
[Related Information]
36th fiscal period (July 1, 2019 – December 31, 2019)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan are in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
37th fiscal period (January 1, 2020 – June 30, 2020)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan are in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on the Statementsof Income and Retained Earnings.

44

66

Japan Prime Realty Investment Corporation(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban multi-use facilities forleasing in Tokyo and other regions. The following is the carrying value on the Balance Sheets, amount of increase (decrease) during
the period and fair value of these investment and rental properties.
(Thousands of yen)Carrying Value on the Balance Sheets
Balance at Beginning of Period

Amount of Increase (Decrease) during the PeriodBalance at End of Current Period

36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)

414,867,157

Fair Value at End of Period

414,502,663(364,493)

17,122,534

414,502,663
522,660,000

431,625,198
538,627,000(Note 1) The carrying value on the balance sheets is the purchase cost less accumulated depreciation.
(Note 2) For the 36th fiscal period, the amount of decrease is primarily attributable to depreciation (1,973,941 thousand yen). For the 37th fiscal period, the amount of
increase is primarily attributable to the acquisition of Minami Semba Bldg. (3,794,912 thousand yen) and the acquisition of Sencity Bldg. (14,013,667 thousandyen), and the amount of decrease is primarily attributable to depreciation (2,027,669 thousand yen).
(Note 3) The fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 36th and 37th fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)


36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)

259,230 yen

266,984 yen

7,491 yen

7,690 yen

Total net assets per unit
Net income per unit

(Note 1) Net income per unit is computed by dividing net income by the weighted-average number of units outstanding during the current fiscal period. Diluted net income
per unit has not been presented since no subscription rights to shares are outstanding.
(Note 2) Net income per unit was calculated based on the following data:Net income (thousands of yen)Amounts not attributable to ordinary unitholders (thousands of yen)
Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period

36th Fiscal Period(July 1, 2019 – December 31, 2019)
6,914,580

37th Fiscal Period(January 1, 2020 – June 30, 2020)
7,276,845－－

6,914,580

7,276,845

923,000 units

946,241 units(Subsequent Events)
Not applicable.

45
67

Financial Statements(7) Detailed Schedules
1) Schedule of Securities
Not applicable2) Status of Contract Amounts, etc. and Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable3) Schedule of Assets Related to Real Estate

Asset Type

Current Assets
Noncurrent Assets(Property, plantand equipment)
Buildings
Structures
Machinery andequipment
Tools,
furniture andfixtures
Land
Constructionin progress
Subtotal(Beneficiaryinterests in trust)Buildings in
trust
Structures intrust
Machineryandequipment in
trust
Tools,
furniture andfixtures intrust
Land in trust
Constructionin progress intrust

Accumulated Depreciation
Balance as of
Increase during Decrease during Balance as ofDepreciation
January 1,
Net Balance as of
Or Accumulated
the Period
the Period
June 30, 2020
during the2020
June 30, 2020
Amortization(thousands of(thousands of (thousands ofPeriod(thousands of(thousands of yen)(thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)
-

60,602,042
58,4094,061,603
3,811

47,525－64,616,121
62,22019,809,897
28,412

914,386
1,600

44,806,224
33,807

821,773

16,619－838,393564,455

22,378273,937

129,582

13,479－143,061

71,367

6,915

71,694

113,060,949

10,203,370－

123,264,320－－

123,264,320

2,413

662

1,856

1,219

－

－

1,219

174,675,170

14,299,547

49,382

188,925,336

20,474,133

945,280

168,451,202

93,481,011

1,712,418

17,39095,176,039

36,554,181

1,041,173

58,621,857

146,650

4,212

17,122

133,739

80,982

3,183

52,757

1,919,756

9,800

－

1,929,556

1,464,811

28,917464,745

232,578

20,009368

252,219

178,396

9,048

73,823

189,014,043

3,143,648－

192,157,692－－

192,157,692

2,035

150

2,035

150

－

－

150

Subtotal

284,796,075

4,890,238

36,916289,649,397

38,278,372

1,082,323

251,371,025

Total

459,471,246

19,189,786

86,298478,574,734

58,752,505

2,027,603

419,822,228

Intangible Assets
Leasehold
right
Other

11,801,831－－

11,801,831－－

11,801,831

5,849

－

－

5,849

2,276

389

3,573

Total

11,807,680－－

11,807,680

2,276

389

11,805,404

Remarks

Propertyacquisition(Note 1) The “Increase during the Period” is due to property acquisition and construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of property acquisition and construction completion for construction in progressand construction in progress in trust, and due to asset retirement for buildings, buildings in trust, structures in trust, and tools, furniture and fixtures in trust.

4) Schedule of Other Specified Assets
Not applicable

46

68

Japan Prime Realty Investment Corporation

5) Schedule of Investment Corporation Bonds
Decrease
Balance as ofduring theJanuary 1, 2020
Period(thousands of(thousands of
yen)
yen)

Balance as ofJune 30, 2020
(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000－

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

Twenty-third Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2018

3,000,000－

3,000,000

0.550

May 31, 2028

Twenty-fourth Series ofInvestment Corporation
Bonds (Green Bonds)(Note 1)

Jul. 31, 2019

5,000,000－

5,000,000

0.570

Jul. 31, 2029

26,500,000－

26,500,000

Total

Use

Remarks(Note 2)

Unsecured(Note 1) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.
(Note 2) Funds are used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses), repaying loans payable and redeeming
investment corporation bonds, etc.
(Note 3) Amounts of investment corporation bonds to be redeemed within five years after the date of the balance sheets are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)

Investment corporation
bonds

－

－

2,000,000

5,000,000

Due after Four Years
through Five Years(thousands of yen)

3,000,000

4769

Financial Statements

6) Schedule of Loans Payable
LenderIncrease
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2020
2020
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

0.169%

Jul.3, 2020

(Note 4)

Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Short-Term Loans Payable
Mizuho Bank Ltd. (Note 5)
Total

Lender1,000,000－

1,000,000－

1,000,000－

1,000,000－

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2020
2020
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Unsecured/
Unguaranteed

Remarks

Long-Term Loans Payable (Note 1)
Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.351%

Mar. 30, 2021

Mizuho Bank Ltd.

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Mizuho Bank Ltd.

5,000,000－－

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

Mizuho Bank Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Mizuho Bank Ltd.

2,000,000－－

2,000,000

0.646%

Dec. 5, 2029

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.889%

Jun. 25, 2021

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.873%

Aug. 31, 2023

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

MUFG Bank, Ltd.

2,000,000－－

2,000,000

0.633%

Dec. 13, 2024

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.638%

Aug. 8, 2025

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.600%

Aug. 29, 2025

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.593%

Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

3,000,000－

3,000,000－

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.351%

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

1.033%

Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

1,000,000－－

1,000,000

0.245%

Dec. 5, 2023

Sumitomo Mitsui Banking Corporation－

3,000,000－

3,000,000

0.300%

Jun. 26, 2025

Development Bank of Japan, Inc.

820,000－－

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14, 2027

Development Bank of Japan, Inc.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Development Bank of Japan, Inc.

2,100,000－－

2,100,000

0.572%

Jun. 27, 2029

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.076%

Sep. 24, 2020

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.

1,000,000－－

1,000,000

0.843%

Jun. 14, 2027

Shinsei Bank, Ltd.

5,000,000－－

5,000,000

0.673%

Apr. 5, 2029

Shinkin Central Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

Shinkin Central Bank

3,000,000－－

3,000,000

0.663%

Jun. 4, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.447%

Dec. 27, 2027

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.480%

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.554%

Sep. 21, 2029－

1,000,000－

1,000,000

0.598%

Jan. 30, 2030

Aozora Bank Ltd.

1,000,000－－

1,000,000

1.069%

Sep. 24, 2020

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank Ltd.

2,000,000－－

2,000,000

0.553%

Feb. 25, 2025

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

The Bank of Fukuoka, Ltd.

7048

(Note 4)

Unsecured/
UnguaranteedJapan Prime Realty Investment Corporation

LenderIncrease
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2020
2020
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Jun. 25, 2027

Use

Remarks

Long-Term Loans Payable (Note 1)
The Norinchukin Bank

2,000,000－－

2,000,000

0.405%

Mizuho Trust & Banking Co., Ltd.

3,000,000－

3,000,000－

1.076%

Feb. 4, 2020

Mizuho Trust & Banking Co., Ltd.

4,000,000－

4,000,000－

0.309%

Mar. 30, 2020

Mizuho Trust & Banking Co., Ltd.

－

3,000,000－

3,000,000

0.586%

Feb. 4, 2030

Mizuho Trust & Banking Co., Ltd.

－2,000,000－

2,000,000

0.606%

Mar. 29, 2030

Meiji Yasuda Life Insurance Company

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

3,200,000－－

3,200,000

0.813%

Jun. 21, 2028

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.583%

Jul. 20, 2029

Sumitomo Life Insurance Company－

1,000,000－

1,000,000

0.598%

Jan. 30, 2030

The Shinkumi Federation Bank

4,000,000－－

4,000,000

0.404%

Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.388%

Dec. 14, 2021

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

Taiyo Life Insurance Company

1,000,000－－

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sep. 24, 2024

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.811%

Jun. 5, 2028

The Chugoku Bank, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.661%

Mar. 25, 2026

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.816%

Oct. 6, 2023

The Iyo Bank, Ltd.

－

1,000,000－

1,000,000

0.598%

Jan. 30, 2030

National Mutual Insurance Federation ofAgricultural Cooperatives

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021 (Note 4)

Sompo Japan Insurance Inc. (Note 6).

2,000,000－－

2,000,000

0.759%

Dec. 25, 2023

Nippon Life Insurance Company

2,000,000－－

2,000,000

0.225%

Nov. 22, 2023

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.489%

Oct. 9, 2020

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.209%

Sep. 24, 2021

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

The Yamaguchi Bank, Ltd.

－

1,000,000－

1,000,000

0.598%

Jan. 30, 2030

Resona Bank, Ltd.

2,000,000－－

2,000,000

0.438%

Sep. 30, 2022

NTT FINANCE CORPORATION

1,000,000－－

1,000,000

0.408%

May 31, 2023－

1,000,000－

1,000,000

0.598%

Jan. 30, 2030

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

The Daishi Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Daido Life Insurance Company

1,000,000－－

1,000,000

0.316%

Dec. 25, 2023

The Chiba Bank, Ltd.

1,000,000－－

1,000,000

0.449%

Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000－－

1,000,000

0.299%

Jun. 27, 2023

The Hyakugo Bank, Ltd.

1,000,000－－

1,000,000

0.582%

Apr. 25, 2025

The Hiroshima Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited1,000,000－－

1,000,000

0.310%

Oct. 2, 2026－－

1,000,000

0.691%

Mar. 25, 2026

13,000,000 10,000,000

160,520,000

The Kiyo Bank, Ltd.

Sumitomo Mitsui Trust Bank Limited

1,000,000

Total

157,520,000(Note 1)

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheets are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable

20,820,000

20,500,000

16,000,000

20,000,000

Unsecured/
Unguaranteed

Due after Four Years
through Five Years(thousands of yen)

21,000,000(Note 2)

The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loan

(Note 3)

Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.

(Note 4)

Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption(Note 5)

JPR made early repayment of the 1,000 million yen in short-term loans payable on January 30, 2020, which was borrowed on December 5, 2019 from Mizuho(Note 6)

Sompo Japan Nipponkoa Insurance Inc. changed its name to Sompo Japan Insurance Inc. as of April 1, 2020.

arrangement paid to the above lenders are not included.

of investment corporation bonds, etc.
Bank, Ltd.

4971

Financial Statements(8) Independent Auditor’s Report50

72

Japan Prime Realty Investment Corporation

73

Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
36th fiscal period (July 1, 2019 – December 31, 2019)
Attribute

Asset
CustodianName ofCompany,etc.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

Percentage of Numberof Investment Units
Held Among Total
Number of Investment
Units

Bankingbusiness andtrust businessTransactions－

Transaction
Amount(thousands of
yen)

－

－
Interest
expenses

22,503

Account

Current
portion of
long-termloans payable
Accruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
489(Note) Transaction terms are determined based on prevailing market conditions.

37th fiscal period (January 1, 2020 – June 30, 2020)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Interested
party

Tokyo
TatemonoCo., Ltd.

Real estatebusiness

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

Percentage of Numberof Investment Units
Held Among Total
Number of Investment
Units

3.05%

－

Transactions

Purchase ofreal estate
beneficiaryinterest
Repayment oflong-term loans
payableBorrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)

Account

Balance at End
of Period(thousands ofyen)

3,750,000－－

7,000,000－－

5,000,000
16,278Long-term
loans
payableAccruedexpenses

5,000,000
325(Note) Transaction terms are determined based on prevailing market conditions.

74

51

Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of June 30, 2020)
Market capitalization: ¥302.8 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 37th Fiscal Period: ¥316,000

Low: ¥130,300 (October 28, 2008)

Trading Volume(units)56,000

Trading Volume (units)

Unit Price (yen)Unit Price(yen)
580,000

49,000520,000

42,000460,000

35,000400,000

28,000340,000

21,000280,000

17,000220,000

7,000

160,000

0Jun. 142002

Jun. 30
2003

Jun. 30
2004

Jun. 30
2005

Jun. 30
2006

Jun. 30
2007

Jun. 30
2008

Jun. 30
2009

Jun. 30
2010

Jun. 30
2011

Jun. 30
2012

Jun. 30
2013

Jun. 30
2014

Jun. 30
2015

Jun. 30
2016

Jun. 30
2017

Jun. 30
2018

Jun. 302019

100,000
Jun. 30
2020(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of June 30, 2020)
Other domestic
corporations

Foreign investors

429

235

(3.87%)(2.11%)

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.90%)

11,085211

Individuals

Foreign investors

35,272 units

197,881 units(3.68%)(20.65%)

Other domestic
corporations

83,715 units(8.73%)

Number ofinvestment units
by investor type958,250
units

Individuals

Financial institutions(including securities firms)

641,382 units

10,210(66.93%)(92.10%)(Note) The composition ratio is rounded down to the second decimal place.

Annual Schedule (provisional)
December

September

Sending of asset management report for the fiscal period ending June
Start of cash distributions for the fiscal period ending June
Information disclosure

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

Start of cash distributions for the fiscal period ending December
Sending of asset management report for the fiscal period ending December

75Introduction to the JPR Website

http://www.jpr-reit.co.jp/en/

8955(Securities Code)JPR endeavors to conduct IR activities and information provision by offering a variety of contents on its website inorder to secure timely disclosure of information to investors and help them gain a better understanding of JPR.
In light of the societal requirements for solving social and environmental issues growing globally, JPR has renewed the
ESG initiatives pages to appropriately disclose its activity status.
Point 1
Digest of Financial
Results

Point 2

Point 3

Initiatives on ESG

Property Overview

Point 2

Point 1

Point 3IR Mail Delivery Service
The IR Mail Delivery Service provides
information on JPR in a timely manner to registered persons. If you
wish to be registered, please click this icon to apply.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

At least once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant to JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

Unitholders of record as of June 30 and December 31 of each year

Transfer Agent

Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo

Location of Records

Main Branch, Stock Transfer Agency Division
Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo

Mailing Address

Stock Transfer Agency Division
Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507

Contact by Phone

0120-288-324 (toll-free only in Japan)

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Procedures for Change of Address
For filing or inquiring about a change of address, please contact your securities company with whom you have an account. For unitholders who have notutilized Japan Securities Depository Center, Inc. before the dematerialization of stock certificates, accounts (special accounts) have been opened at Mizuho
Trust & Banking Co., Ltd., JPR’s transfer agent. For filing or inquiring about a change of address and other matters with regard to your special account,please direct them to the contact number indicated above.
Cash Distributions
Cash distributions can be collected by bringing the “unitholder dividend receipt” to the nearest Japan Post Bank main or branch office, sub-branch office orpost office (bank agent) in Japan. If the collection period has elapsed, please make your collection by designating the collection method on the back of the“unitholder dividend receipt” and mailing it to Mizuho Trust & Banking’s Stock Transfer Agency Division. Cash distributions can also be collected at the mainor branch offices of Mizuho Trust & Banking (excluding the Trust Lounge) and Mizuho Bank, Ltd.
If you wish to designate a transfer of cash distributions to a bank, etc., please contact your securities company (if you have an account with the company) or
Mizuho Trust & Banking (if a special account has been opened), as in the case of changing the address, etc. above.
(Note) According to the provisions of JPR’s Articles of Incorporation, cash distributions will become irretrievable if they remain unclaimed for three full years from the date on which payment commenced. We advisethat cash distributions be received as soon as possible.