25th
Report on Operating andManagement Results
Twenty-Fifth Fiscal Period
Semi-Annual Report
January 1, 2014 – June 30, 2014

Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation (JPR) is a J-REIT having one of the largest asset
holdings in Japan with a combined portfolio that is focused on office properties in Tokyo* andcomplemented by urban retail properties.
Since its listing in 2002, JPR has steadily expanded its asset size while maintaining stable cash
distributions. Going forward, JPR will endeavor to further improve the quality of its portfolio
and manage its assets so that steady growth and enhancement of unitholder value is secured as it
moves ahead.
*"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).

Features of JPR

1. Proven track record in achieving steady growth andstable management since listing

2. High-quality portfolio of assets centering on office properties
in Tokyo

3. Stable financial operations
4.

 trong support from five sponsor companies including
S
Tokyo Tatemono Co., Ltd.

Cash Distribution per Unit
Determined cash distribution (for the 25th fiscal period)¥6,150(Distribution starting on September 10, 2014)

Assets Held¥404.7 billion(End of 25th fiscal period)

Properties Owned

62 properties(End of 25th fiscal period)

Occupancy Rate at End of Period

97.8%(End of 25th fiscal period)

The Otemachi Tower (Land with Leasehold Interest)

Contents
I. Account Highlights
1. Operating Performance Topics
2. Message from Asset Manager

3
3
4

II. Overview of JPR
1. Portfolio Growth
2. Investment Strategy
3. Operational Strategy
4. Financial Strategy
5. Initiatives on Governance
6. Initiatives on Environmental Friendliness7. Overview of Portfolio Properties
8. Structure and History of JPR
9. Overview of Asset Manager

8
8
10
12
13
14
15
16
30
31

III. Asset Management Report
1. Overview of Asset Management
2. Overview of the Investment Corporation
3. Status of JPR’s Assets Under Management
4. Capital Expenditures of Owned Real Estate

32
32
39
41
45

5. Expenses and Liabilities
6. Acquisitions and Sales during the 25th Fiscal Period
7. Overview of Accounting
8. Overview of Self-Managed Investment
		 Trust Beneficiary Certificates
9. Other

47
50
51

IV. Financial Statements(1) Balance Sheets(2) Statements of Income and Retained Earnings(3) Statements of Changes in Unitholders’ Equity(4) Statements of Cash Distributions(5) Statements of Cash Flows(6) Notes to Financial Statements(7) Detailed Statements(8) Report of Independent Auditors(9) Other Notes (Information Only)

54
54
56
57
58
59
60
69
73
74

V. Investor Information

75

52
53

1

Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko
Executive Officer

Sosuke Yasuda
Supervising Officer

Masato Denawa
Supervising Officer(From left to right) Masato Denawa, Hirohito Kaneko and Sosuke Yasuda

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 25th fiscal period (January 1, 2014 – June 30, 2014) at the end of June 30, 2014,
we renew our heartfelt appreciation for your advocacy and encouragement.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio overthe medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

2I. Account Highlights

Japan Prime Realty Investment Corporation

1. Operating Performance Topics(All amounts in millions of yen unless otherwise stated)

21st Fiscal Period 22nd Fiscal Period 23rd Fiscal Period 24th Fiscal Period 25th Fiscal Period
ended
ended
ended
ended
ended
June 2012
December 2012
June 2013
December 2013
June 2014
Operating revenues

12,345

12,963

13,27813,591

13,734

Ordinary income

4,597

5,026

4,975

4,899

5,073

Net income

4,596

5,025

4,974

4,954

5,072

Total cash distributions

4,597

5,026

4,975

4,954

5,073

Total assets

396,017

401,984

409,715

413,974

414,104

Total unitholders' equity

176,035

197,168

197,116

197,095

197,213

44.5

49.0

48.1

47.6

47.6

Unitholders' equity per unit (yen)

246,204

238,992

238,929

238,903

239,046

Cash distribution per unit (yen)

6,430

6,093

6,031

6,006

6,150

Equity ratio (%)

Operating Revenues andNet Income

Total Assets andTotal Unitholders' Equity

15,000500,000

12,000400,000

Cash Distribution per Unit

8,000

6,000

300,000

9,000

4,000
6,000

200,000

3,000

100,000

2,000

0

21st
FiscalPeriod22nd
FiscalPeriod23rd
FiscalPeriod24th
FiscalPeriod25th
FiscalPeriod0

21st
FiscalPeriod22nd
FiscalPeriod23rd
FiscalPeriod24th
FiscalPeriod25th
FiscalPeriodOperating Revenues (million yen)

Total Assets (million yen)

Net Income (million yen)

Total Unitholders' Equity (million yen)0

21st
FiscalPeriod22nd
FiscalPeriod23rd
FiscalPeriod24th
FiscalPeriod25th
FiscalPeriodCash Distribution (yen)3

I. Account Highlights

2. Message from Asset Manager

Satoshi Okubo
President and Chief Executive Officer (CEO)Tokyo Realty Investment Management, Inc.
(the Asset Manager of JPR)
Career Highlights
2010: 	Took office as President and CEO of Tokyo Realty
Investment Management, Inc.
2005: 	Appointed Director and Head of Kansai Branch
Office, Tokyo Tatemono
1998: 	Appointed General Manager of Residential
Management Department, Tokyo Tatemono
1977: 	Joined Tokyo Tatemono Co., Ltd.

Thanks to the recovery in the office property leasing market, revenues from theportfolio are on track to an upward trend.
We will aim to achieve the stable growth of JPR’s cash distributions by steadfastly
seizing opportunities that should lead to growth.

I would like to extend my heartfelt gratitude to you, our unitholders, for the support you haveextended to Japan Prime Realty Investment Corporation (JPR).
In the 25th fiscal period that ended June 2014, we were engaged in reinforcing leasing and otheractivities to increase earnings, reduce costs and various other measures. These endeavors enabled
the distribution per unit of JPR to reach ¥6,150, surpassing the results achieved for the previous
fiscal period.
Let me give you an overview of the management results for the 25th fiscal period and the future
outlook of JPR.

4

Japan Prime Realty Investment Corporation

Q1: Can you brief us on cash distributions for the 25th fiscal period ended June 2014?
per unit has reached ¥6,150, up ¥144 compared with the previous fiscal
A1: Distribution
period.
Distribution per unit for the 25th fiscal period increased by ¥144 from the previous fiscal period to ¥6,150, as a resultof our endeavors on implementing measures for improved profitability and cost reductions, among other measures.
Furthermore, we forecast a distribution per unit of ¥6,180 for the next fiscal period ending December 2014, a further
increase of ¥30 from the latest results, to mark the second consecutive period with a period-on-period increase.
Changes in Operating Revenues and Distribution per Unit
(Millions of yen)
15,000(Yen)
Operating revenues (million yen, left axis)

6,300

Distribution per unit (yen, right axis)

6,200

14,50013,591

14,0006,100

13,87913,7346,000

13,27813,50013,000(Forecast)

5,900

12,9635,800
00Distribution
per unit

22nd Period
ended Dec. 2012

23rd Period
ended Jun. 2013

24th Period
ended Dec. 2013

25th Period
ended Jun. 2014

26th Period
ending Dec. 2014

6,093 yen

6,031 yen

6,006 yen

6,150 yen

6,180 yen
(Forecast)

Q2: What trends do you see in the office property leasing market in Tokyo?
A2: The occupancy rate has improved, and rents are also rising.
In the office property leasing market
in Tokyo, new demand has expanded
while new supply has been rather
small, leading to the improved
supply and demand balance. Withconclusion of large contracts taking
place, the occupancy rate hascontinued to rise for 12 consecutive
months (as of the end of June 2014).
As for rents, new rents for largescale office properties have shown an
increasingly stronger upward trend,
having a favorable influence that has
been spreading in the market as awhole.

Changes in Average Rent and Occupancy Rate in Tokyo CBDs(%)

(Yen/tsubo)
17,00094

Occupancy rate (right axis)

Average rent (left axis)

16,75093

16,50092

16,250

91

0

0
Jul.
2013

Aug.
2013

Sep.
2013

Oct.
2013

Nov.
2013

Dec.
2013

Jan.
2014

Feb.
2014

Mar.
2014

Apr.
2014

May
2014

Jun.
2014

(Source) Prepared by TRIM based on the Office Data (Tokyo CBDs) publicized by Miki Shoji Co., Ltd.

5

I. Account Highlights

Q3: What is the backdrop to the 1.3 percentage point increase in JPR’s occupancy rate?
significant improvement was achieved in the occupancy rate of office properties in
A3: A
central Tokyo.
Our measures to reinforce leasing
activities proved effective, allowing
us to conclude more lease contracts
than anticipated. This was a factor
in the occupancy rate increasing by
1.3 percentage points to 97.8% at theend of the 25th fiscal period, finallyregaining the pre-global financial
crisis level. In particular, the figurefor office properties in central
Tokyo improved significantly by 3.9
percentage points to 97.9%, making
a large contribution to the increasein the occupancy rate of the entire
portfolio.
With regard to rents, we are also ina situation in which it is gradually
becoming possible for us to raise
rents, both in new contracts andcontract renewals, and we seerevenues from the portfolio turning
to an upward trend.

Changes in Occupancy Rate at Period End

(%)
100

Kickoff of the second
Abe administration(December 2012)

Great East Japan
Earthquake(March 2011)

Lehman Shock(September 2008)

97.8%

98

96

94

92

0

Jun.
2008

Dec.
2008

Jun.
2009

Dec.
2009

Jun.
2010

Dec.
2010

Jun.
2011

Dec.
2011

Jun.
2012

Dec.
2012

Jun.
2013

Dec.
2013

Jun.
2014

Q4: Can you tell us about your efforts on external growth?
will continue to firmly maintain the stance of vigorously selective investment in
A4: Weblue-chip properties.
In the current for-sale real estate market, property prices are set at even higher levels, as sellers seek higher prices
in expectation of the recovery in rental revenues and other reasons. Competition over acquisitions has intensified,particularly for blue-chip office properties in Tokyo. During the 25th fiscal period, we investigated acquisitions
centering on office properties in central Tokyo and retail properties in the Tokyo metropolitan area, but noacquisition was closed and completed. We will continue to firmly keep the stance of vigorously selective investment
by utilizing sponsor support and other measures, in order to purchase blue-chip properties without being involved inexcessive competition.

For-sale market situation

Diverse acquisition channels• Intensified competition overproperty acquisitions• Sponsor support• Reduced availability of blue-chipproperties

6• Proprietary information
channels• Utilization of preferential
negotiation rights

Investment stance• Vigorously selective investment
in blue-chip properties• Utilization of negotiatedtransactions

Japan Prime Realty Investment Corporation

Q5: Can you tell us about the refinancing conducted in the 25th fiscal period?
worked on further reduction of financial costs and a shift to long-term,
A5: Wefixed interest rate debts.
The fund procurement environment has remained favorable due to the monetary easing measures taken by the Bank ofJapan. Given such a situation, we endeavored to further reduce financial costs and promote a shift to long-term, fixedinterest rate debts through fund procurement by borrowings and issuance of investment corporation bonds.
Comparison Before and After Refinancing in the 25th Fiscal Period
Implementation ofrefinancing

Borrowings and investment
corporation bonds

Before refinancing

16,903 million yen

After refinancing

16,500 million yen

Average maturity

Average interest rate

6.4 years

2.40%+ 2.2 years- 1.33%8.6 years

1.07%

Q6: What types of investors own JPR’s investment units in large volume?
A6: By percentage of unitholders, financial institutions have a high unitholding ratio.
Presumably, there are the following three factors in the backdrop of the high unitholding ratio of financial institutions.
1) High credit ratings (AA ratings)
2) Large market capitalization (299.8 billion yen as of the end of June 2014)
3) Stable distributions per unit (stable distribution per unit at the 6,000 yen level for 5 consecutive periods)
Going forward, Japan’s Government Pension Investment Fund (GPIF), one of the world’s largest pension funds, will
start investing in J-REITs. We will continue our efforts on steady growth of cash distributions so that we can meet the
expectations of such new investor classes as GPIF.

7

II. Overview of JPR

1. Portfolio Growth
Occupancy Rate at End of Period (%)
100

96.3

94.1

95

93.4

93.5

93.2

92.7

95.1

95.4

97.2

99.0

98.6

98.0

98.4

90
85

Asset Size, etc. and Results of Distributions per Unit (billions of yen)
400
Office properties in Tokyo

Office properties in Other Cities

Retail properties

350

300

245.3

250

197.6

200

202.6

209.2

179.6

125.7
100

50

0

40.7
12.5
14.9
13.2

92.1

94.5

40.1

41.5

38.8

39.7

13.2

13.2

52.7
39.7
33.2

139.6

99.2
77.4

47.9
38.2

38.2

108.2

114.7

100.1

43.1

43.1

93.9

93.9

100.1

91.2

57.5

43.9

222.4

100.1

163.6
150

251.9

47.9

40.4

48.3

45.2

45.2

50.0

57.2

63.8

45.2

77.0

Nov. 16, 2001 End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec.
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
Start of
1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period
management

Number of
13
properties
Total number
133
of tenants
Leasable floor
94,935space (m2)Distribution–
per unit (yen)

25

27

30

32

38

42

42

42

44

46

48

49

281

311

324

357

437

496

459

441

462

479

491

517

162,739

168,987

201,808

218,734

256,329

273,330

281,408308,205

315,156

337,382

361,574

373,609

2,545

6,912

6,873

5,738

6,081

6,671

6,370

6,411

6,509

6,873

6,996

6,671

Property Diversification
Retail in Tokyo
15.7%

Retail 23.5%

Retail in Other Cities
7.8%
Office in Other Cities
9.3%

Target investment ratio by area
Tokyo:
80 - 90%
Other Cities: 20 - 10%

Other Cities Tokyo
17.1% 82.9%

Target investment ratio by asset class
Office in Tokyo
67.2%

Office 76.5%

8

Portfolio Management Standards

Office: 70 - 90%
Retail: 30 - 10%(Note) 	The figures in the graph to the left show the investment ratios, which represent the ratiosof the total acquisition price of properties in respective categories to the total acquisition
price of the entire portfolio, rounded to the first decimal place.

Japan Prime Realty Investment Corporation

97.5

96.4

96.8

96.4

95.5

93.5

94.7

95.6

94.1

94.9

96.9

96.5

97.8

404.7

404.7

265.8

271.9

271.9

391.9

398.6

259.2

259.2

380.9
341.5

341.5

344.9

331.2
299.4
275.1

310.6

280.6

184.1
135.7

141.6

43.1

39.4

96.1

99.5

172.9

209.5

219.8

219.8

223.2

31.1

31.1

26.5

26.5

26.5

26.5

26.5

37.5

37.5

37.5

37.5

95.3

95.3

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun.
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
13th Period 14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period 22nd Period 23rd Period 24th Period 25th Period

50

52

51

53

55

56

56

57

58

59

60

62

62

537

499

476

476

460

479

493

501

502

534

564

610

628

383,491

383,215

393,532

400,751

410,326

420,544421,371423,311434,340

450,943

460,452

467,207467,175

7,122

7,092

3,731

6,933

6,770

5,680

5,611

5,876

6,430

6,093

6,031

6,006

6,150

(Note 1) 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.
(Note 2)	The number of tenants at end of period is counted as follows: 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.
(Note 3) 	For Shinjuku Square Tower, each compartmentalized owner leases respective exclusive space to Tokyo Tatemono Co., Ltd. in a lump sum, and Tokyo Tatemono subleases the space tosublessees. Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted space of offices, shops and warehouses that are leased by Tokyo Tatemono andcan be sublet, by JPR’s rent distribution rate (39.70457% through June 30, 2008 and 40.31465% since the 14th fiscal period in accordance with the additional acquisition in September 2008),
while the leased floor space for calculating the occupancy rate is calculated by multiplying the floor space sublet to sublessees by the rent distribution rate. Both figures are rounded to thesecond decimal place.
In addition, the number of the sublessees is deemed to be the number of tenants for the building.
(Note 4) 	The tenants of Shinjuku Center Bldg., Rise Arena Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants
fluctuates in accordance with the lease conditions of the sublessees. Accordingly, the total leasable floor space, total leased floor space and the occupancy rate of the building indicate those forthe sublessees of the tenants, and the number of the sublessees is deemed as the number of its tenants.
(Note 5) 	When the contracted floor space and the floor space for calculating rents differ, the latter was treated as the leased floor space through the 10th fiscal period. Since the 11th fiscal period,
however, the contracted floor space has been used as the leased floor space.
(Note 6) The occupancy rate at end of period has been rounded to the first decimal place.
(Note 7) The total leasable floor space has been rounded off to the nearest integer.

9II. Overview of JPR

2. Investment Strategy
JPR is resolved to continuously work on investment focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investment in retailproperties as well as office properties in regional cities that are expected to generate relatively high yields.

Focusedinvestment in
office properties
in Tokyo

Vigorously
selective
investment inretail properties
as well as officeproperties inregional cities

Improve the quality of the portfolio by making investment focused on office properties inTokyo that are expected to contribute to long-term growth
Compared with other regional cities, Tokyo allows expectations for more stable occupancy andhigher rent levels, and is believed to offer larger rooms for an upward turn of rents when the leasing
market starts to recover. Looking ahead, JPR will continue to make investment focused on officeproperties in Tokyo, with an aim to further improve the quality of its portfolio and enhance its
growth potential in the recovery cycle of the market.

For retail properties as well as office properties in regional cities, which allow JPR to expect
higher yields, work to invest in strictly selected blue-chip properties that can keep stablerevenues at a certain level
Retail properties as well as office properties in regional cities tend to have relatively higher yields
than office properties in Tokyo, although there are some properties that are somewhat less stable interms of earnings subject to the market situation. While securing growth potential by making focusedinvestment in office properties in Tokyo, JPR will make vigorously selective investment in urban retailproperties with long-term, fixed-rent contracts and in large office properties in regional cities having
a high competitive advantage in the areas, in order to complement the stability of earnings from theentire portfolio.

Changes in Investment Ratios by Asset Class and Area
Over the last five years, JPR made investments in 13 office properties in Tokyo totaling 99.0 billion yen (acquisition
price), enhancing the quality of its portfolio.
End of 1st Fiscal Period (June 30, 2002)

Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

End of 25th Fiscal Period (June 30, 2014)
Retail in
Other Cities
7.8%
Office in
Other Cities
9.3%

Office in
Tokyo
43.5%

Retailin Tokyo
15.7%

Increase in investment ratio
of office properties in Tokyothrough focused investment:

Officein Tokyo

67.2%+23.7%(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.

Portfolio Management Standards of JPR

10

Target investment ratio by area

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

Office: 70 - 90%
Retail: 30 - 10%

Japan Prime Realty Investment Corporation

In the for-sale real estate market, transactions of blue-chip properties have been rather limited. Given
the situation, JPR will work to invest in blue-chip properties by fully implementing various acquisition
strategies based on its high sourcing abilities while utilizing sponsor support.
Utilization of sponsor
support from the Fuyo
Group companies
including Tokyo
Tatemono

Supply of blue-chip properties among office properties in Tokyo is still inadequate in thefor-sale real estate market, and their acquisition opportunities are rather limited.

Investment strategies
based on diversified
property acquisition
methods and highsourcing abilities

To acquire properties from third parties other than the sponsors, JPR exercises its highsourcing abilities and takes advantage of various information channels to make access to
wide-ranging property information.

JPR will take advantage of support from Tokyo Tatemono Co., Ltd. and other sponsors tosecure opportunities to invest in blue-chip properties at reasonable price levels without being
exposed to excessive competition in the market.

For properties with co-ownership or compartmentalized ownership, JPR implements
various methods to acquire properties, including acquisition of additional equity by utilizing
preferential negotiation rights.

Cases in which JPR Acquired Properties by Utilizing Sponsor Support
JPR has displayed its strength of having sponsors comprising real estate developers, a general contractor and financial
institutions in acquiring blue-chip properties.
<Sponsors>

The Otemachi Tower(Land with Leasehold Interest)

Yakuin Business GardenTokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance

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

Yakuin Business Garden was acquired
from an SPC in which Tokyo Tatemono
has equity interests.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its
sponsors, etc.(Notes 1 and 2) and that of properties acquired
from third parties (total of properties acquired basedon the information provided by the sponsors and thoseacquired other than from the sponsors, etc.) are almost
equal, standing at 50.4% for the former and 49.6% for
the latter (on an acquisition price basis).
JPR will work to increase property acquisition
opportunities and conduct vigorously selective investment
in blue-chip properties by building sourcing abilities on
its own instead of depending solely on sponsor support.
(Note 1)	Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment.
(Note 2)	Sompo Japan Insurance Inc. was renamed Sompo Japan Nipponkoa Insurance Inc. as of
September 1, 2014 in accordance with the merger with NIPPONKOA Insurance Company,
Limited.

Transactions with third parties

49.6%

Properties acquired
other than fromsponsors, etc.

30.1%
19.5%

Properties
acquired fromsponsors, etc.

50.4%

Properties acquired
based on information
provided by sponsors

11II. Overview of JPR

3. Operational Strategy
JPR endeavors to implement its leasing strategies focused on maintaining and increasing the occupancyrate, with an aim to keep revenues from the portfolio stable in a continuous manner.

Organizational
reinforcement ofleasing activities

Tokyo Realty Investment Management, Inc. (TRIM) has established a group that supervises leasing,which implements leasing strategies that are based on property characteristics. Endeavors arebeing exerted to enhance the leasing framework by not only reinforcing coordination with property
management companies but also receiving support on leasing and obtaining market information frommajor brokerage firms, so that JPR can provide lease terms and conditions that take into account themarket conditions, accelerate decision-making and take other measures to strengthen leasing.

Maintenanceand improvementof tenantsatisfaction

TRIM periodically conducts questionnaire surveys to tenants, and works to improve tenantsatisfaction by grasping comments, requests and other feedback from tenants and promptly
responding. By doing so, TRIM aims to prevent move-outs of existing tenants and encourage themto expand office spaces in the same buildings or the upward revision of rents, so as to secure stableearnings of JPR over the medium to long term.

Strategic valueenhancement
works

TRIM has established a group dedicated to construction management, reinforcing its responses tobusiness continuity plans, promotion of renovations for energy-efficiency and other initiatives thatare strongly requested by society. In addition, while working to enhance NOI and tenant satisfaction,
TRIM strategically conducts value enhancement works that should strengthen competitive
advantages of properties as well as help attract tenants.

Changes in Occupancy Rate
Endeavors to reinforce leasing activities and enhancetenant satisfaction successfully generated results, withthe period-average occupancy continuing to rise sincethe 23rd fiscal period and standing at a high level of
97.0% in the 25th fiscal period.

（%）
98.0

Period-Average Occupancy Rate

96.0
94.0

96.9%

97.0%

24th
Period25th
Period

95.6%
93.6%

94.0%

18th
Period19th
Period

95.0%

94.8%

94.4%

20th
Period21stPeriod22nd
Period92.0

Examples of Renewal Works

23rd
PeriodJPR has been strategically conducting value enhancement works that should lead to invitation of new tenants andimprovement in tenant satisfaction.
Examples of works conducted in the 25th fiscal period include renewal works at Kawaguchi Center Building andTokyo Tatemono Honmachi Building, centering on refurbishment of their interior furnishings at the common areasof each floor. At Kawaguchi Center Building, efforts were made to enhance the high-grade atmosphere throughsuch measures as replacing carpet tiles and affixing DI-NOC sheets to entrance and exit doors, resulting in highappreciation by the tenants. At Tokyo Tatemono Honmachi Building, interior renovations were conducted on thewalls of the elevator hall. The work used high-grade, wood-pattern wall materials, which consequently helped enhancecustomer satisfaction.
Renewal work at Kawaguchi Center Building
BeforeRenewal work at Tokyo Tatemono Honmachi Building

After
Before12

AfterJapan Prime Realty Investment Corporation

4. Financial Strategy
JPR is engaged in conducting financial operations in a stable and sound manner, such as working tolengthen the average maturity of debts while maintaining the ratio of long-term, fixed interest rate debts aswell as conservatively controlling the ratio of interest-bearing debts (LTV).
LTV

JPR is engaged in conservative financial operations, setting the ceiling of LTV at 55% as a ruleand working to control the ratio at 50% or lower in practice.

47.3%
Ratio of long-term, fixedinterest rate debts

JPR keeps a high ratio of long-term, fixed interest rate debts under the basic policy of procuring
funds through long-term, fixed interest rate debts, with an eye on reducing risks of rising interest
rates.

97.2%
Average interest rate

JPR endeavors to reduce financing costs, taking advantage of the favorable fund procurement
environment to the utmost.

1.23%
Average maturity

JPR works to lengthen the average maturity of debts under the basic policy of procuring fundswith longer borrowing periods, while remaining attentive to the diversification of repayment andredemption dates.

3.7 years

Status of Corporate Credit Ratings Assigned to JPR (End of 25th Fiscal Period)
JPR maintains high, AA-rank credit ratings, with recognition given to its stable and sound financial operations.
R&I

S&P

(Rating and Investment Information, Inc.)(Standard & Poor's Ratings Japan K.K.)

A

AA-

A-1

(Long-term)(Short-term)

Changes in Average Interest Rate and Average Maturity
JPR endeavors to reduce
financing costs and keep
financial stability by lowering
the average interest rateand lengthening the average
maturity.

(%)
1.8

Average interest rate (left axis)

1.69

1.6

1.48

1.46

5.0

1.41

1.4
1.2

1.35

1.23

3.0
years

2.9
years

3.3
years

3.3
years

3.5
years

3.7
years

End of20th Period(Dec. 2011)

End of21st Period(Jun. 2012)

End of22nd Period(Dec. 2012)

End of23rd Period(Jun. 2013)

End of24th Period(Dec. 2013)

End of25th Period(Jun. 2014)

1.0
0(years)
6.0

Average maturity (right axis)

4.0
3.0
2.0
0

Diversification of Repayment Dates of Interest-Bearing Debts
JPR works to mitigate refinance risks by establishing a commitment line totaling 28 billion yen while having
repayment dates of debts more diversified.
(100 million yen)

Short-term loans payable

250

Long-term loans payable

Investment corporation bonds

200
150
100
50
0

50

130
110
1
20

135
61

131

70
41

50

195
120

83

20
81

20
91

80

60

20

100
48

20

25

26th
27th
28th
29th
30th
31st
32nd
33rd
34th
35th
36th
37th
38th
39th
40th
41st
period period period period period period period period period period period period period period
periodperiodEnding Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending
EndingEndingDec. 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 Dec. 2021 Jun. 2022

50

50

45

43rd
periodEndingJun. 2023

45th
periodEndingJun. 2024

50th
periodEndingDec. 2026

13

II. Overview of JPR

5. Initiatives 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 Asset Manager.

Highly Independent Board Composition❚❚   At JPR, the executive officer as well as the supervising
officers have no concurrent assignment as officer of
TRIM so as to firmly secure the independence of JPR, theinvestment corporation.

Executive Officer:❚❚   The JPR officers comprise attorneys and a certified public
accountant with various experiences and high expertise, whohave a thorough knowledge of the REIT industry as well.

Supervising Officer: Masato Denawa (attorney)

Members of the Board of JPR

Hirohito Kaneko (attorney)

Supervising Officer: Sosuke Yasuda(certified public accountant)Diversified Shareholder Composition and Reinforced Independence❚❚   With the sponsors comprising five companies, thediversified shareholder composition also contributes
to securing the independence of the Asset Manager.
❚❚   TRIM President and CEO has assumed office after
having his employment transferred to TRIM, insteadof being seconded from the sponsor company hebelonged to.
❚❚   The Compliance Office general manager in charge ofinternal control is a career employee, not seconded
from the sponsor company he belonged to.

Shareholder Composition of TRIM
real estateTokyo Tatemono

real estate

Shareholding ratio:

40%

Taisei Corporation

Yasuda Real Estate

Shareholding ratio:

20%

20%

Shareholding ratio:

financefinance

Meiji Yasuda Life Insurance

Shareholding ratio:

construction

10%(Asset Manager)
Tokyo Realty Investment
Management, Inc.

Sompo Japan Nipponkoa Insurance Inc.

10%

Shareholding ratio:

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
the Compliance Committee as to their adequacy andrationality. The Committee employs unanimous votefor approvals in principle.
❚❚   An outside attorney has been appointed as a special
member of the Compliance Committee.
Members of the Compliance Committee of TRIM
President and CEO

14

Proposal, planning

Investment Management Department

Review, screening

Compliance Subcommittee

Decision on acquisition policy

Investment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Final decision on acquisition

Corporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager
Special member(outside attorney)

Stringent Decision-Making Process(for property acquisitions)

Decision making on acquisition
over certain amountConclude agreement

Compliance Committee
JPR’s Board of Directors

Investment Subcommittee

TRIM’s Board of Directors

Acquisition

Japan Prime Realty Investment Corporation

6. Initiatives on Environmental Friendliness
From early on, JPR has implemented various initiatives on environmental friendliness.
JPR has proactively worked on effective reduction of energy costs, enhancement of greening inconsideration of the urban environment and other measures under the basic concept of “environmentallyfriendly buildings.” Such endeavors have also been recognized by external organizations.

Acquisition of DBJ Green Building Certification❚❚   JPR has obtained DBJ Green Building Certification, a system by Development Bank of Japan Inc. (DBJ) to certify
real estate properties evincing high environmental and social awareness, for multiple properties it owns.
DBJ Green Building

DBJ Green Building

DBJ Green Building

DBJ Green BuildingGold

SilverGold

Silver2013

2013

Properties
with
DBJ Green Building
DBJ Green Building
exceptionally highGreen Building
DBJ Green Building
environmental&
Bronze DBJ
Certified2013
2013
social awareness

Gold

2013

SilverOlinas Tower
2013

2013

2013

Properties
DBJ
Green Building
with excellent
DBJ Green Building
environmental
BronzeCertifiDBJ
edGreen& Building
2013
2013
social awareness

DBJ Green Building

Yakuin Business
GardenGold

SilverJPR Sendagaya Bldg.

2013

2013

DBJ Green Building

DBJ Green Building

DBJ Green Building

DBJ Green Building

BronzeCertifiedBronzeCertified

2013

2013

2013

Shinagawa Canal
Building

2013

Properties
with sufficientenvironmental &social awareness

Properties withhigh environmental& social awareness
JPR Crest Takebashi
Bldg.

JPR Ueno East Bldg. BYGS Shinjuku Bldg.

DBJ Green Building Certification

JPR Nihonbashi
Horidome Bldg.

Kanematsu Bldg.

DBJ awards five levels of certification (Platinum, Gold, Silver, Bronze and Certified) to officebuildings in accordance with the degree of environmental and social awareness they demonstrate.

Continuous Participation in GRESB Survey❚❚   JPR has participated in the GRESB Survey, which analyzes and evaluatesenvironmental considerations and sustainability, since 2011 and has
been recognized each time for its approach to environmentally-friendly
initiatives.
❚❚   JPR believes that its endeavors have been recognized as a result of
having diligently worked to reduce energy consumption by establishinga consistent system among all business partners involved in building
operations, from the Asset Manager to property managers and building
maintenance companies, under a clear environmental policy as well as asking
for cooperation with tenants.

GRESB, which stands for Global Real
Estate Sustainability Benchmark, isa benchmark system for analyzing
and evaluating sustainability interms of environmental friendlinessand social nature. It is based on
surveys conducted by a private
sector group established primarily
by major pension funds in Europe.

Taking Advantage of Environmental Friendliness Know-How of Sponsors❚❚   JPR and TRIM have consigned operations related to environmental laws and regulations to Tokyo Tatemono Co.,
Ltd., one of the sponsors, and established a system early on to receive know-how and advice from Tokyo Tatemono.
❚❚   TRIM has reinforced its initiatives on environmental friendliness by allocating dedicated staff to the section in chargeof construction planning for the portfolio properties, bolstered by the technological know-how of Taisei Corporation,
one of the sponsors.
15II. Overview of JPR

7. Overview of Portfolio Properties
List of Properties (62 Properties for the Entire Portfolio)
Central Tokyo (30 Properties)
Property
Number

Property Name

Location

Acquisition Date

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

4.0

7,994.02

2.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

7.4

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

5.8

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,317.48

8.6

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

1.0

3,265.34

6.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.8 14,469.72

4.0

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,243.58

4.4

Oct. 15, 2003

1,800

0.4

1,250.06

A-8

Fukuoka Bldg.

Chuo-ku, Tokyo

Apr. 15, 2005

1,120

0.3

687.342,920

0.7

1,937.40

Total

7.1

A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.3

4,224.96

8.0

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.9

4,088.44

1.6

Jul. 2, 2004

10,0002.5 10,982.03

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

Sep. 26, 2008

180

Office0.0

168.75

Total

10,1802.5 11,150.78

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.2

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,121

3.7

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

A-17

Rokubancho Bldg.

A-18

JPR Harajuku Bldg.

A-19

2.0

15,216.93

3.7

0.2

1,253.39

5.0

21,0005.2

8,863.98

2.4

Jul. 14, 2008

3,760

0.9

3,405.73

4.3

Dec. 19, 2008

1,870

0.5

1,700.57

6.8

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.7

2,488.36

4.4

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

2.1

4,760.09

7.1

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.3

3,551.01

7.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.3

5,299.89

4.7

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.7

6,177.74

4.7

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,899.27

8.2

A-23

The Otemachi Tower (Land with
Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.9 11,034.78

–

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.7

3,325.27

4.6

A-25

Shibadaimon Center Building

Minato-ku, Tokyo

Dec. 6, 2013

3,420

0.8

4,359.59

7.0

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0003.0

8,076.85

5.0

A-2

JPR Daikanyama

Shibuya-ku, Tokyo

Oct. 5, 2004

2,160

0.5

651.2911.1

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 24, 2006

4,275

1.1

1,027.33

3.0

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,347.81

2.0

2,740

0.7

3,400

0.8

1,101.92

2.3

52.5 146,329.21—

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

Total
A-5

Yurakucho Ekimae Bldg. (Yurakucho
Itocia)Subtotal

Chiyoda-ku, Tokyo

Aug. 27, 2008

¥212,606(Note 1) The table above shows properties owned by JPR as of June 30, 2014.
(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 equity interest held by JPR.

16

PML (%)

A-1

Total

RetailAcquisitionPrice(in millions)Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.5

7,022.76

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.6

5,537.74

2.6

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

10.2

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

6.4

1,490

0.4

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

2.0 15,420.09

4.7

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.8

6,490.05

3.1

Sep. 30, 2005

888

0.2

1,699.49

3.2

2,300

0.6

2,983.91

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

3,188

0.8

4,683.40

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.4

6,023.39

2.5

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.6 12,013.95

1.2

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,3007.7 23,987.40

3.3

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.7

6,494.09

9.5

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.5

6,871.45

4.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.5 31,121.71

6.6

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

6.3

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,260

1.8 19,740.95

10.9

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.1 14,960.69

8.0

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,0803.7 12,116.35

4.0¥122,891

30.4 189,798.30—

AcquisitionPrice(in millions)

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

PML (%)

Total

RetailPercentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

B-1

Total

OfficeAcquisitionPrice(in millions)

Subtotal

5.2

Other Cities (15 Properties)
Property
NumberOfficeRetailProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,326.88

1.9

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,163.07

10.5

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,568.43

1.1
4.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.8

7,129.14

0.5

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.12

11.2

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.7

3,257.73

1.3

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,930.71

11.1

C-18

JPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 11, 2004

1,920

0.5

3,290.42

1.6

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

10.0

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

1.4

Aug. 8, 2012

10,996

2.7 16,654.33

May 15, 2003

8,000

2.0
1.2 18,586.97

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

Total

13,0003.2

C-3

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.3

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.8 35,444.13

4.8

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.5

2,484.39

14.8

5,303.98

11.6
12.7

Subtotal¥69,223

17.1 131,047.03

—

Total

¥404,720

100.0 467,175.54

3.5(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the second decimal place.

17II. Overview of JPR

Portfolio Map
A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-12

A-9
Chiyoda
A-24
Ward
A-17
A-4

A-4

Tokyo

A-21
Shibuya Ward

A-5

Ichigaya

A-23

Harajuku

A-3
A-1

A-18

A-2 A-1

A-13

A-8
A-19
A-5 A-22

Chuo Ward

A-25

Shibuya

A-20
A-3

Minato Ward

A-2
TamachiA-15

GotandaA-6
Shinagawa

A-7

A-16

A-10
OhsakiShinagawa Ward
RetailOffice
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-8
● A-9
● A-10● A-11● A-12● A-13Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex● A-14● A-15● A-16● A-17● A-18● A-19● A-20● A-21● A-22● A-23

Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(Land with Leasehold Interest)● A-24 Science Plaza – Yonbancho Plaza● A-25 Shibadaimon Center Building

A Central Tokyo
Chiyoda Ward
Chuo Ward

18

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

■ A-1
■ A-2
■ A-3
■ A-4
■ A-5

JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

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

Musashiurawa

B-5● 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

Minamiurawa
Kawaguchi

B-6
B-3

SAITAMA

CHIBA

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9 Ueno

B-7

Shinjuku

B-11
B-1
Kinshicho

TachikawaTokyo
ShibuyaChiba

B-2

ShinagawaMusashikosugi

B-4

Musashikosugi(New Station)

KANAGAWA

KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

Retail
■ 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-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-18 JPR Hakata-chuo Bldg.
● C-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden

OSAKA

Retail
■ C-1
■ C-3
■ C-4
■ C-5

FUKUOKAJPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

C-7
C-14
C-18
C-20
NAHA

C-9

C-4
C-17
C-1
C-3
C-5

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
WAKAYAMA

C-13

19

II. Overview of JPR

Property Acquired in the 26th Fiscal Period
Shibadaimon Center Building (additional ownership)

A-25
JPR successfully achieved acquisition of additional ownership in an existing
property it owns, securely seizing the opportunity in the real estate market
becoming increasingly overheated.

1. Property Overview
Location

1-10-11 Shibadaimon, Minato-ku, Tokyo

Completion

July 1993

Structure/Floors

S, SRC/flat roof B1/10F

Total site area

1,915.50 m2

Total floor space

11,419.93 m2

Property manager

Yasuda Real Estate Co., Ltd.

2. Transaction Summary
Seller

Individual

Acquisition price

¥800 million

Appraisal value

846 million yen (as of July 1, 2014)

Acquisition dateJuly 30, 2014

3. Assumed Income
NOI yield

4.7 %Zojyo-ji
Templend KeihTokyo
Prince Hotel

Minato City
OfficeDaimon Sta.
Toei Oedo Line
World Trade Center
BuildingTokyo
MIELPARQUE Hall

JR YamanoteaExterior appearance with tiled walls generating composure

Toei Mita Line

Shibadaimon Center
Building

in Toh

To

ei

As

ak

oku Linus

Onarimon Sta.

es

aL

ine

(Note) 	The NOI yield of the property has been calculated by dividing the assumed income
for 12 months based on the rent level, the occupancy rate and other factors uponacquisition, by the acquisition price.

Kyu Shiba
Rikyu Gardens

Hamamatsucho Sta.

Common areas with a sense of cleanliness, using white as the base color

The property features a highly-convenient location as it is within walking distance from a
Yamanote Line station and three stations on five railway lines are available.

Stone-cladded entrance providing a high-grade atmosphere

20

Japan Prime Realty Investment Corporation

Portfolio Properties
Central Tokyo

DBJ Green Building

DBJ Green Building

OfficeKanematsu Bldg.

Gold Retail

Silver

2013

2013

DBJ Green Building

DBJ Green Building

BronzeCertified

2013

2013

Kanematsu Bldg. Annex

A-1

A-2

Chuo Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price¥2,874 million

Site Area

679.06 m2

Total Floor Space

4,351.46 m2

Structure/Floors

SRC B1/8F

CompletedFebruary 1993

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ningyo-cho Bldg.

A-3
Chuo Ward, Tokyo
Acquisition Price¥2,100 million

Site Area

550.06 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space¥16,276 million
1,751.13 m2
14,995.09 m2

Structure/Floors
Completed

S/RC/SRC B2/13F
February 1993

December 1989

Property Manager
DBJ Green BuildingGold

Site Area

Structure/Floors
Completed

BronzeA-5
Certified2013

Acquisition Price¥2,420 million

636.90 m2

Total Floor Space

SRC B1/9F
October 1984

Total Floor Space
Structure/FloorsCompleted
Property Manager

September 1999

Property Manager

Yasuda Real Estate Co., Ltd.

Gotanda First Bldg.

¥11,200 million
8,992.18 m

SRC B1/9F

Completed

A-7

Minato Ward, Tokyo

Site Area (Note)

4,790.68 m2

Structure/Floors

Tokyo Tatemono Co., Ltd.

Acquisition Price231,020.21 m2
SRC/RC/S B2/13F
February 1988

Tokyo Tatemono Co., Ltd.

2013

¥4,000 million

Site Area

5,152.98 m2

A-6

2013

Chiyoda Ward, Tokyo

Property Manager

MS Shibaura Bldg.

Silver

DBJ Green Building

JPR Crest Takebashi Bldg.

657.80 m2

Total Floor Space2013

DBJ Green Building

Chiyoda Ward, Tokyo
Acquisition Price

DBJ Green Building

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

A-4

SRC/RC B1/8F

Completed

Property Manager

Shin-Kojimachi Bldg.

4,117.70 m2

Structure/Floors

Shinagawa Ward, Tokyo
Acquisition Price
Site Area¥2,920 million
1,551.19 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

21

II. Overview of JPR

Portfolio Properties
Central Tokyo

OfficeRetailFukuoka Bldg.

JPR Ichigaya Bldg.

A-8

A-9

Chuo Ward, Tokyo
Acquisition Price

Chiyoda Ward, Tokyo
Acquisition Price¥2,920 million

Site Area

1,302.17 m

Total Floor Space

Site Area

2

Structure/Floors

Structure/Floors

SRC B2/10F

Completed

CompletedMay 1990

Shinjuku Square Tower

Shinjuku Ward, Tokyo
Acquisition Price¥3,500 million

Site Area

8,409.52 m2 (entire redevelopment project)

Total Floor Space

28,575.80 m2

Structure/Floors

78,796.00 m2 (entire redevelopment project)

Structure/Floors

S/SRC B2/17F

Completed

Completed

June 2001

Property Manager
DBJ Green Building

BYGS Shinjuku Bldg.

2013

October 1994

Tokyo Tatemono Co., Ltd.

Silver2013

DBJ Green Building

DBJ Green Building

BronzeA-12
Certified

2013

S/RC/SRC B4/30F

Property Manager

DBJ Green Building

Tokyo Tatemono Co., Ltd.

Gold

¥10,180 million

Site Area

4,006.00 m2

Total Floor SpaceMarch 1989

A-11

Shinagawa Ward, Tokyo
Acquisition Price

SRC B1/9F

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

A-10

5,888.82 m2

Property Manager

Property Manager

Oval Court Ohsaki Mark West

1,058.04 m2

Total Floor Space

11,627.74 m2¥5,100 million

2013

Across Shinkawa Bldg. Annex

A-13

Shinjuku Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price
Site Area¥710 million
858.48 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

Minami Azabu Bldg.

A-15
Minato Ward, Tokyo
Acquisition Price
Site Area

778.09 m2

Total Floor Space
Acquisition Price

Structure/Floors¥15,121 million
Site Area

3,522.46 m
Total Floor Space22

2

25,733.10 m2

SRC B2/14F
Completed

April 1985
Property Manager

Tokyo Tatemono Co., Ltd.

¥3,760 million

Structure/Floors
Completed
Property Manager

4,570.63 m2
S

9F

June 1992

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetail
DBJ Green Building

DBJ Green Building

Shinjuku Center Bldg.

Shinagawa Canal Bldg. Gold

A-14
Shinjuku Ward, Tokyo

Silver

2013

2013

A-16

Minato Ward, Tokyo

DBJ Green Building

DBJ Green Building

Acquisition PriceBronzeCertified¥1,870 million
2013

2013

Site Area

828.82 m2

Total Floor Space
Structure/Floors
Completed

5,216.21 m2
S

B1/8F

July 2008

Property Manager

Tokyo Tatemono Co., Ltd.

Rokubancho Bldg.

A-17
Chiyoda Ward, Tokyo
Acquisition Price
Site Area

716.95 m2

Total Floor Space
Acquisition Price

Structure/Floors¥21,000 million
Site Area
Total Floor Space

14,917.11 m2
176,607.89 m2

Structure/Floors

SRC/RC/S B5/54F
Completed

Completed

October 1979
Property Manager

JPR Harajuku Bldg.

Shibuya Ward, Tokyo
Acquisition Price

October 1991

Site Area

1,205.07 m2

Total Floor Space

Structure/Floors

SRC B1/9F

Completed

Completed

March 1989

Property Manager
DBJ Green Building¥5,250 million
547.10 m2

Total Floor Space

6,466.94 m2

Structure/Floors

A-19
Chuo Ward, Tokyo

Acquisition Price¥8,400 million

Site Area

4,419.79 m2
SRC/S B1/10F
January 1981

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Silver2013

SRC B3/7F

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Kyobashi Bldg.

A-18

Gold

4,205.09 m2

Property Manager

Tokyo Tatemono Co., Ltd.

DBJ Green Building¥2,800 million

2013

DBJ Green Building

DBJ Green Building

JPR Nihonbashi-horidomeBronze
Bldg.

Certified

2013

2013

Ginza Sanwa Bldg.

A-20

A-22
Chuo Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price
Site Area¥5,100 million
937.59 m

Total Floor Space
Structure/Floors
Completed
Property Manager:2

7,190.82 m2
SRC B1/9F
June 2002

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed¥3,400 million
1,119.27 m2
8,851.00 m2
SRC B2/9F
October 1982

Property Manager

Mitsubishi Jisho Property Management Co., Ltd.

23

II. Overview of JPR

Portfolio Properties
Central Tokyo

OfficeRetail

DBJ Green Building

DBJ Green BuildingGold

SilverJPR Sendagaya Bldg.

2013

2013

The Otemachi Tower

A-21

Shibuya Ward, Tokyo

DBJ Green Building

DBJ Green Building

BronzeCertified

2013

Chiyoda Ward, Tokyo

2013

Acquisition Price
Acquisition Price¥15,050 million
2,217.49 m
Total Floor Space

2

7,683.19 m2

S 8F
CompletedMay 2009
Property Manager

Tokyo Tatemono Co., Ltd.

Science Plaza - Yonbancho Plaza

Structure/Floors¥36,000 million

Structure/Floors

Site Area

A-23(Land with Leasehold Interest)

Site Area

11,034.78 m2

Total Floor Space–
Completed–
Property Manager–**	Since the property consists of land with leasehold interest only, no property managementcompany has been appointed.

Shibadaimon Center Building

A-24

A-25

Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥2,660 million
5,289.01 m

Total Floor Space
Structure/Floors
Completed

Minato Ward, Tokyo
Acquisition Price
Site Area

2

Structure/Floors

S, SRC, RC B2/12F

CompletedFebruary 1995

Property Manager

Yasuda Real Estate Co., Ltd.

A-3
Shibuya Ward, Tokyo

Shibuya Ward, Tokyo
Acquisition Price
Site Area¥2,160 million
277.12 m

Total Floor Space
Structure/Floors
Completed

2668.09 m2
RC B2/2F
July 2002

Property Manager

Jones Lang LaSalle K.K.

24

S, SRC B1/10F
July 1993

JPR Jingumae 432

A-2

11,419.93 m2

Property Manager

Yasuda Real Estate Co., Ltd.

JPR Daikanyama

1,915.50 m2

Total Floor Space

24,560.36 m2¥3,420 million

Acquisition Price
Site Area¥4,275 million
198.10 m2

Total Floor Space
Structure/Floors
Completed

1,066.81 m2
S/SRC B1/7F
February 2006

Property Manager

Jones Lang LaSalle K.K.

Japan Prime Realty Investment Corporation

Central Tokyo

Office/ Greater Tokyo Office Retail

RetailShinjuku Sanchome East Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-4
Shinjuku Ward, Tokyo

Shibuya Ward, Tokyo
Acquisition Price
Site Area¥2,740 million
2,578.69 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

Yurakucho Ekimae Bldg.

A-5(Yurakucho Itocia)

Chiyoda Ward, Tokyo
Acquisition Price
Site Area

6,808.12 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space

¥12,000 million
1,010.47 m2
8,449.56 m

2Structure/Floors
Completed

Structure/Floors

SRC/S B3/8F

CompletedFebruary 1992

Property Manager

Tokyo Tatemono Co., Ltd.

B-2

Sumida Ward, Tokyo
Acquisition Price
Site Area¥5,880 million
3,755.01 m

Total Floor Space
Structure/Floors
Completed234,281.86 m2
S/SRC B3/19F
March 1997

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Yokohama Nihon Odori Bldg.

B-3

Chiba City, Chiba
Acquisition Price
Site Area

Site Area¥2,927 million
1,100.59 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

9,146.52 m2
SRC B1/11F
October 1989

Tokyo Tatemono Co., Ltd.

¥2,350 million
1,382.35 m2

Total Floor Space
Structure/Floors
Completed

9,072.57 m2
S/SRC B1/13F
January 1991

Property Manager

Tokyo Tatemono Co., Ltd.

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa
Acquisition Price

S/SRC B4/20F
October 2007

JPR Chiba Bldg.

B-1

71,957.65 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Arca East¥3,400 million

B-5
Yokohama City, Kanagawa

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed¥1,490 million
841.71 m2
7,781.93 m2
S/SRC B2/12F
August 1991

Property Manager

Nomura Real Estate Partners Co., Ltd.

25

II. Overview of JPR

Portfolio Properties
Greater Tokyo

OfficeDBJ Green Building

DBJ Green BuildingGold

SilverRetailKawaguchi Center Bldg.

B-6

JPR Ueno East Bldg.

2013

2013

DBJ Green Building

DBJ Green Building

BronzeB-7
Certified

2013

Kawaguchi City, Saitama
Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed

Acquisition Price¥8,100 million
4,524.61 m¥3,250 million

Site Area

2

1,242.97 m2

Total Floor Space

28,420.85 m2

8,490.44 m2

Structure/Floors

S/SRC B2/15F

S/SRC B1/8F

CompletedFebruary 1994

Property Manager

October 1992

Property Manager

Nomura Real Estate Partners Co., Ltd.

Tachikawa Business Center Bldg.

Yasuda Real Estate Co., Ltd.

Rise Arena Bldg.

B-8

B-9
Toshima Ward, Tokyo

Tachikawa City, Tokyo
Acquisition Price
Site Area

Acquisition Price¥3,188 million

Structure/Floors
Completed¥5,831 million

Site Area

9,377.28 m2 (entire redevelopment project)

2,047.22 m2

Total Floor Space2013

Taito Ward, Tokyo

Total Floor Space

91,280.94 m2 (including residential tower)

14,706.36 m2

Structure/Floors

S/SRC B1/12F

RC/SRC/S B3/42F*

Completed

December 1994

January 2007

Property Manager

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

Tokyo Tatemono Co., Ltd.

*The commercial tower portion has 2 basement floors and 15 floors above ground.
DBJ Green Building

Yume-ooka Office Tower

B-10

Olinas Tower

Gold

Yokohama City, Kanagawa
Acquisition Price
Site Area

2013

DBJ Green Building

B-11
Silver2013

Sumida Ward,Tokyo
DBJ Green Building
DBJ Green Building

Bronze¥6,510 million

2013

Certified

2013

12,011.00 m2

Total Floor Space
Structure/Floors
Completed

185,974.87 m2
S/SRC/RC B3/27F
March 1997

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Yokohama Bldg.

B-12

Yokohama City, Kanagawa
Acquisition Price
Site Area¥7,000 million
1,110.28 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

8,772.51 m

SRC B1/9F
May 1981

Tokyo Tatemono Co., Ltd.

26

Acquisition Price

Structure/Floors¥31,300 million

2

SRC/RC/S B2/45F*

Site Area

Completed

27,335.29 m2 (entire site area)
Total Floor Space
257,842.41 m2

Property Manager(includes commercial tower andresidential tower)

March 2006
Tokyo Tatemono Co., Ltd.

*The office building has 31 floors above ground and 2 floors underground.

Japan Prime Realty Investment Corporation

Greater Tokyo

Office/ Other Cities Office Retail

Retail

B-13

Omiya Prime East

Tanashi ASTA

B-1

Saitama City, Saitama
Acquisition Price

Nishitokyo City, Tokyo
Acquisition Price¥6,090 million

Site Area

2,268.09 m

Total Floor Space

Structure/Floors

S/9F

CompletedFebruary 2009

Tokyo Tatemono Co., Ltd.

JPR Musashikosugi Bldg.

B-4

Kawaguchi City, Saitama
Acquisition Price

February 1995

Property Manager

Tokyo Tatemono Co., Ltd.

B-3

Kawasaki City, Kanagawa
Acquisition Price¥2,100 million

Site Area

Site Area

Total Floor Space

Total Floor Space

15,008.28 m2 (entire redevelopment project)
48,321.96 m2

Structure/Floors

January 2006

B-5

Acquisition Price
Site Area

March 1983

Property Manager

Tokyo Tatemono Co., Ltd.

Musashiurawa Shopping Square

18,394.32 m2
SRC/RC/S B1/6F

Completed

Property Manager¥7,260 million
4,761.62 m2

Structure/Floors

S/RC/SRC B2/10F

Completed

80,675.27 m2
SRC B2/17F

Completed

Property Manager

Cupo-la Main Bldg.

12,326.30 m2

Total Floor Space

9,203.98 m2

Structure/Floors¥10,200 million

Site Area

2

Tokyo Tatemono Co., Ltd.

Kawasaki Dice Bldg.

B-6

Saitama City, Saitama

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

Nippon Steel Kowa Real Estate Co., Ltd.
Tokyo Tatemono Co., Ltd.

Niigata Ekinan Center Bldg.

C-1
Niigata City, Niigata

Acquisition Price
Site Area¥2,140 million
2,706.99 m2

Total Floor Space
Structure/Floors
Completed

19,950.42 m2
S/SRC B1/10F
March 1996

Property Manager

Jones Lang LaSalle K.K.

Acquisition Price

Structure/Floors¥15,080 million
Site Area
Total Floor Space

4,475.45 m2
36,902.01 m2

S/SRC/RC B2/11F
Completed

August 2003
Property Manager

Tokyo Tatemono Co., Ltd.

27

II. Overview of JPR

Portfolio Properties
Other Cities

OfficeRetailTokyo Tatemono Honmachi Bldg.

JPR Hakata Bldg.

C-4

C-7

Osaka City, Osaka
Acquisition Price
Site Area

Fukuoka City, Fukuoka
Acquisition Price¥4,150 million
Site Area

1,432.64 m2

Total Floor Space
Structure/Floors

1,214.63 m2

Total Floor Space

14,619.52 m2

Structure/Floors

SRC B3/9F
Completed

CompletedFebruary 1970

Sompo Japan Sendai Bldg.

C-9

Sendai City, Miyagi

Structure/Floors
Completed

Acquisition Price¥1,560 million
959.87 m

Total Floor Space

Site Area

2

5,780.71 m2

Structure/Floors

SRC/S 12F

Completed

October 1991

Site Area

Tenjin 121 Bldg.

Structure/Floors
CompletedFukuoka City, Fukuoka

Site Area

2

Structure/Floors

9F

Completed

July 1996

Property Manager

Site Area¥2,140 million
668.11 m

Total Floor Space
Structure/Floors
Completed
Property Manager

25,696.01 m2
SRC B2/9F
October 1993

Tokyo Tatemono Co., Ltd.

28

July 2000

C-18

Osaka City, Osaka
Acquisition Price

S/SRC 13F

Tokyo Tatemono Co., Ltd.

JPR Hakata-Chuo Bldg.

C-17

8,690.95 m2

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Dojima Bldg.

¥2,810 million
1,164.39 m2

Total Floor Space

6,715.07 m2
S

December 1997

C-14
Acquisition Price¥1,670 million
1,128.45 m

Total Floor Space

SRC B1/12F

Tokyo Tatemono Co., Ltd.

Wakayama City, Wakayama
Acquisition Price

10,783.52 m2

Property Manager

Tokyo Tatemono Co., Ltd.

C-13

¥3,150 million
1,895.67 m2

Total Floor Space

Property Manager

Sompo Japan Wakayama Bldg.

June 1985

C-12

Naha City, Okinawa

Site Area

S/SRC B1/12F

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Acquisition Price

9,828.73 m2

Property Manager

Property Manager

JPR Naha Bldg.

¥2,900 million

Fukuoka City, Fukuoka
Acquisition Price
Site Area¥1,920 million
680.63 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

3,874.81 m2
SRC 8F
February 1993

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

OfficeRetail

DBJ Green Building

DBJ Green Building

JPR Nagoya Fushimi Bldg.

Yakuin Business Garden

C-19

Gold

Nagoya City, Aichi
Acquisition Price
Site Area

Structure/Floors
Completed2013

Fukuoka City, Fukuoka
DBJ Green Building
DBJ Green Building

Bronze¥4,137 million
1,610.38 m

Total Floor Space

2013

C-20
Silver2013

Certified2013

2

10,201.44 m2
SRC B1/9F
March 1991

Property Manager

Tokyo Tatemono Co., Ltd.

Benetton Shinsaibashi Bldg.

C-3
Osaka City, Osaka

Acquisition Price
Site Area¥5,430 million
609.31 m2

Total Floor Space

5,303.98 m2

Structure/Floors

S B2/10F
CompletedFebruary 2003
expansion in January 2005
Property Manager

Tokyo Tatemono Co., Ltd.

JPR Umeda Loft Bldg.

C-1

Acquisition Price

Structure/Floors¥10,996 million
Site Area

4,348.43 m2

Total Floor Space2

SRC/14F
Completed

January 2009
Property Manager

22,286.35 m

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe

C-4
Kobe City, Hyogo

Osaka City, Osaka
Acquisition Price
Site Area¥7,220 million
3,994.47 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Chayamachi Bldg.

C-5
Osaka City, Osaka
Acquisition Price
Site Area

592.45 m2

Total Floor Space
Acquisition Price

Structure/Floors¥13,000 million
Site Area

Structure/Floors

SRC B1/8F
Completed

3,518.68 m2
Total Floor Space

Completed

April 1990
Property Manager

17,897.56 m2

Tokyo Tatemono Co., Ltd.

¥6,000 million

3,219.36 m2
S/SRC 9F
June 1994

Property Manager

Tokyo Tatemono Co., Ltd.

29

II. Overview of JPR

8. Structure and History of JPR
The Objective and Basic Characteristics of JPR
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 found in
thriving commercial areas, multi-use facilities and the land on which they are located as well as in asset-backed
securities that have such real estate as their primary investments.
In addition, in light of the returns and risks of these investment targets, JPR shall make it a basic policy to invest
not only in Tokyo, but also strive to diversify into other regional cities so as to maximize the advantages of
portfolio management.

Corporate History
Date

Description

September 6, 2001

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)

September 14, 2001

Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act

November 16, 2001

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)

January 22, 2002

Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act

June 14, 2002

Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange and started trading

Structure of JPR

Administrative Agent forEnvironment-Related Laws andRegulations

40%

20%

20%

10%

10%

Tokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents

Tokyo Tatemono Co., Ltd.

Japan Prime Realty
Investment Corporation

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

Loans / Issue
of Investment
Corporation
Bonds

Asset
Management
Property

General Tenant Services Agent /Construction Management Agent /Property Transfer Agent /Administrative Agent forEnvironment-Related Laws andRegulations

Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager

Cash
Distribution

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Entrustment of Entrustment ofgeneralasset custodyadministration

30

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Japan Prime Realty Investment Corporation

9. Overview of Asset Manager
Overview
Name
Business Description
Capitalization

Shareholder
Composition (Note 1)

Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporation¥350 million
Tokyo Tatemono Co., Ltd. (40%)
Taisei Corporation (20%)
Yasuda Real Estate Co., Ltd. (20%)
Sompo Japan Nipponkoa Insurance Inc. (10%)
Meiji Yasuda Life Insurance Company (10%)

Corporate History

April 28, 2000

EstablishedObtained license as real estate transaction agent(currently: No. (3) 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 andInvestment 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 2)

October 13, 2000
March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

Applied for registration and submitted application form for financial instruments exchange business(Note 1) The percentage represents the ratio of the number of respective shares with voting rights to the total number of shares with voting rights.
(Note 2) 	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

Compliance Committee(Compliance Subcommittee)
Compliance Office

Investment Management
Division

Financial 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

GeneralAdministration
Group

Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions,as well as the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees comprise 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 of investment management are decided by the Board of Directors, andmatters concerning planning and implementation of 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 Committee, 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.
31III. Asset Management Report

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

Million yen

21st Fiscal
Period(Jan. 1, 2012 Jun. 30, 2012)
12,34522nd Fiscal
Period(Jul. 1, 2012 Dec. 31, 2012)
12,96323rd Fiscal
Period(Jan. 1, 2013 Jun. 30, 2013)13,27824th Fiscal
Period(Jul. 1, 2013 Dec. 31, 2013)
13,591

25th Fiscal
Period(Jan. 1, 2014 Jun. 30, 2014)
13,734

Million yen

12,345

12,963

13,27813,591

13,734

Million yen

5,952

6,198

6,893

7,223

7,308

Million yen

5,217

5,519

6,208

6,534

6,599

Operating Income

Million yen

6,393

6,765

6,385

6,368

6,425

Ordinary Income

Million yen

4,597

5,026

4,975

4,899

5,073

Net Income

Million yen

4,596

5,025

4,974

4,954

5,072

Total Assets

Million yen

396,017

401,984

409,715

413,974

414,104

㻌
Fiscal Period

Unit

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance㻌
Operating Revenue
㻌

Rent revenue – real estate

Operating Expenses
㻌

Expenses related to rent business(Period-on-period variation)(+9.8)(+1.5)(+1.9)(+1.0)(+0.0)

Interest-bearing Debt

Million yen%

195,081180,557

187,158

191,759

191,190

Total Unitholders Equity

Million yen

176,035

197,168

197,116

197,095

197,213(Period-on-period variation)%(+0.2)(+12.0)(-0.0)(-0.0)(+0.1)

Unitholders' CapitalMillion yen

171,339

192,044

192,044

192,044

192,044

Total Cash Distributions

5,073

Million yen

4,597

5,026

4,975

4,954

Dividend payout ratio

%

100.0

100.0

100.0

100.0

100.0

Number of Units Outstanding

Units

715,000

825,000

825,000

825,000

825,000

Total Unitholders' Equity per unit

Yen

246,204

238,992

238,929

238,903

239,046

Cash Distribution per Unit

Yen

6,430

6,093

6,031

6,006

6,150

㻌

Distribution amount

Yen

6,430

6,093

6,031

6,006

6,150

㻌

Exceeding profit distribution amount

Yen

Ordinary Income on Total Assets (Note 1)

%

－
1.2

－
1.3

－
1.2

－
1.2

－
1.2

%

2.4

2.5

2.5

2.4

2.5

%

2.6

2.7

2.5

2.5

2.6

%

5.2

5.3

5.1

5.0

5.2

175,640

176,035

197,168

197,116

197,095

44.5

49.0

48.1

47.6

47.6

(-4.2)(+4.6)(-0.9)(-0.5)(+0.0)

%

49.3

44.9

45.7

46.3

46.2

㻌

㻌

Annualized (Note 10)

Financial Indices

Net Income on Total Unitholders' Equity(Note 2)
㻌

Annualized (Note 10)㻌Total unitholders' equity at beginningof period

Unitholders' Equity Ratio at End of Period(Note 3)%

(Period-on-period variation)
Interest-bearing Debt to Total Assets at
End of Period (Note 4)
DSCR (Note 5)

Times

5.4

6.0

6.3

6.1

6.5

㻌

Net income before interest andamortization (Note 6)

Million yen

7,811

8,226

8,163

8,149

8,167

㻌

Interest expenses

Million yen

1,459

1,368

1,304

1,325

1,259

Million yen

8,882

9,275

8,953

8,925

8,968

%

4.7

4.7

4.5

4.4

4.5

Million yen

8,271

8,595

8,359

8,080

8,287

%

4.4

4.4

4.2

4.0

4.1

NOI from Leasing (Note 7)㻌Annualized NOI yield (Notes 9 and 10)

NCF from Leasing (Note 8)㻌Reference
Information

Million yen

Annualized NCF yield (Notes 9 and
10)Investment Properties Owned (Note 11)
Number of Tenants

㻌
㻌

58

59

60

62

62

502

534

564

610

628

Total Leasable Floor Spacem2

434,340.04

450,943.43

460,452.47

467,207.05

467,175.54

Occupancy Rate

%

94.1

94.9

96.9

96.5

97.8

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Ordinary income / (total assets at beginning of period + total assets at end of period) / 2
Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2
Total unitholders' equity at end of period / total assets at end of period x 100
Interest-bearing debt / total assets at end of period x 100
Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)
Net income - gain on sale of real estate + loss on sale of real estate + loss on sale of investment securities + extraordinary loss + interest expenses (includinginterest expenses on investment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing / property acquisition price (21st fiscal period: ¥380.98 billion, 22nd fiscal period: ¥391.98 billion, 23rd fiscal period: ¥398.64
billion, 24th fiscal period: ¥404.72 billion and 25th fiscal period: ¥404.72 billion)
Annualized NCF from leasing / property acquisition price3232

Japan Prime Realty Investment Corporation(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 21st fiscal period: 182 days, 22nd fiscal period: 184 days,
23rd fiscal period: 181 days, 24th fiscal period: 184 days and 25th fiscal period: 181 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East Bldg., Shinyokohama 2nd Center Bldg.,
Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but 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 off to the first decimal place).

(2) 25th 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
and Investment 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. Subsequently, JPR
conducted five public offerings and other equity financing measures, with the number of investment units issued and outstanding
totaling 825,000 units at present. 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
During the 25th fiscal period, although there had been concerns that the economy might be adversely affected by the increase in
the consumption tax, the slowdown following the tax rise was largely within expectation. Consumer spending was observed topick up, given the solid employment environment, and private capital investment also showed an increasing tendency due toimprovement in corporate performances and other factors. As such, the economy maintained a moderate recovery trend.
The Office Property Leasing Market
The supply and demand balance in the office property leasing market of the 23 wards of Tokyo further improved due toexpansion in new demand, including increased office space within the same buildings, on top of new supply remaining small.
Given this situation, the upward trend of the rent levels for new contracts has been strengthened for Class S and Class A buildings,
and the positive impact is increasingly spreading through the entire market including Class B buildings, such as the rent-free
periods granted to new tenants being reduced.
The Retail Property Leasing Market
There had been concerns about negative impacts of the consumption tax increase particularly on retail properties. However, suchimpacts that had been worried about were hardly found for urban retail properties in which JPR targets to invest, as tenants’ needs
to open stores remained strong. Urban retail properties in good locations, such as Ginza and Omotesando, have seen vacancies
drop, with rents in the course of taking an upward turn and increasing.
The For-Sale Real Estate Market
The transaction volume expanded, including deals of large-scale projects, as initial public offerings and public offerings by
REITs took place one after another against the backdrop of a favorable fund procurement environment. However, with a distinct
trend of acquisitions of properties by REITs being made from their sponsors, the supply and demand situation in the for-sale realestate market is becoming increasingly tighter, mainly for quality properties. Because of the decreased cap rates, combined withexpectations for recovery of rental revenues, the transaction price of real estate is being formed at an even higher level, and there
is an expanding tendency to invest in projects located in regional cities.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality and stabilizing earnings of the portfolio while paying attention tobalancing diversification of the portfolio, both in terms of location and asset class.
During the 25th fiscal period, JPR investigated possible investments primarily in office properties in central Tokyo and retailproperties in the Tokyo metropolitan area, but no acquisition was closed and completed. As a result, the balance of assets undermanagement totaled 62 properties, or 404.7 billion yen on an acquisition price basis, as of the end of June 2014, with the total
leasable floor space standing at 467,175 m2 and the number of tenants reaching 628.
Operational Management of Portfolio
The vacancy rate in the office property leasing market showed a downward trend in the 25th fiscal period, 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
occupancy rates. As a result, JPR successfully increased the occupancy rate at end of period to an even higher level of 97.8%, up
1.3 percentage points from the end of the 24th fiscal period.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR

33
33

III. Asset Management Reportcontinued to proactively implement value enhancement works based on tenant needs with the aim to create spaces where theworkers feel satisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning
systems and replacement of lighting equipment in the common areas with LED lamps, which are expected to be effective for theendeavor, at its multiple properties.
In addition, JPR is proactively engaged in environmental friendliness, continuously working to obtain environmental
certifications (the DBJ Green Building Certification*1 and the recognition by GRESB*2).
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet thevarious social requirements surrounding real estate from stakeholders (“Green Buildings”)*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estatecompanies, REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a groupof the same name composed of more than 20 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in conservative financial operations, setting the ceiling of the interest-bearing debt ratio (hereafter the “LTV”)(Note 1) at 55% as a rule and working to control the ratio largely at 50% or lower in practice.
In debt financing, JPR continued to maintain financial stability by conducting bank borrowings at long-term fixed interest rates
with an eye on reducing risks of rising interest rates while remaining attentive to the diversification of repayment dates, etc.
JPR established a commitment line with credit limit of 28 billion yen in order to reduce refinancing risks and secure stable fundprocurement.
In the 25th fiscal period, JPR procured funds of 16.5 billion yen in total, including refinancing of loans and investment
corporation bonds upon maturity. As a result, the balance of total outstanding borrowings as of the end of the fiscal period was
134.6 billion yen, with investment corporation bonds of 56.5 billion yen.
As of the end of the 25th fiscal period, JPR had LTV of 47.3%, long-term and fixed interest-bearing debt ratio (Note 2) of 97.2%,
average interest rate (Note 3) of 1.23%, and average maturity (Note 4) of 3.7 years. Furthermore, the current portion of long-term
interest-bearing debt was 32.3 billion yen.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of June 30, 2014
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) LTV: (borrowings + investment corporation bonds) / total value of assets
Total value of assets is calculated by adding or subtracting the difference between the appraisal value at end of period and the book value at end of period of
the specified assets owned by JPR to the total assets.
(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debt / total interest-bearing debt
(Note 3) Average interest rate is arrived at by calculating a weighted average of interest rates for all interest-bearing debt as of the end of the 25th fiscal period basedon the balance of each interest-bearing debt.
(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 25th fiscal period to the repayment deadlines for all
interest-bearing debt based on the balance of each interest-bearing debt.

34
34

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 25th fiscal period.
Date

Event

Number of Units
Outstanding

Unitholders' Capital(millions of yen)

Remarks

Variation
240

Balance240

Variation
120

Balance
120(Note 1)

September 14, 2001

Established by private placement

November 16, 2001

Additional private placement

62,00062,24031,00031,120(Note 2)January 22, 2002

Split of investment units

93,360155,600

31,120(Note 3)June 14, 2002

Initial public offering

134,000

289,600－
25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

39,120154,552(Note 9)March 7, 2007

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

July 30, 2012

Additional public offering

101,420

816,420

19,089190,429(Note 13)

August 29, 2012

Third-party allotment

8,580

825,000

1,614

192,044(Note 14)

(Note 1)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment(Note 2)

An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in real estate trust and started

Management, Inc. (40 units) at 500,000 yen per unit.
management.
(Note 3)

A single investment unit was split into 2.5 units.

(Note 4)

New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to repay short-term debt,
finance the acquisition of new specific assets, etc.

(Note 5)New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to repay short-term debt,
acquire new specific assets, etc.

(Note 6)

New investment units were issued through a third-party allotment at 228,859 yen per unit to repay short-term debt, acquire new specific assets, etc.

(Note 7)

New investment units were issued through a public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to repay short-term debt,
acquire new specific assets, etc.

(Note 8)New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debt, acquire new specific assets, etc.

(Note 9)New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to repay debt, acquire new
specific assets, etc.

(Note 10)(Note 11)

New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debt, acquire new specific assets, etc.
New investment units were issued through a public offering at 168,101 yen per unit (underwriting price of 162,382 yen per unit) to repay short-term debt,
redeem investment corporation bonds, acquire new specific assets, etc.

(Note 12)

New investment units were issued through a third-party allotment at 162,382 yen per unit to repay short-term debt, redeem investment corporation bonds,
acquire new specific assets, etc.

(Note 13)

New investment units were issued through a public offering at 194,610 yen per unit (underwriting price of 188,222 yen per unit) to partly fund acquisition of
new specific assets and repay debts.

(Note 14)

New investment units were issued through a third-party allotment at 188,222 yen per unit to partly fund acquisition of new specific assets and repay debts.

35
35

III. Asset Management Report(4) Cash Distributions
With regard to the cash distributions, JPR decided to distribute part of the retained earnings brought forward that had been internallyreserved through the 24th 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) andin order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result, the cash distribution perunit came to 6,150 yen for the 25th fiscal period.
(Thousands of yen unless otherwise indicated)
Fiscal Period

Unappropriated Retained Earnings at End of Period

21st Fiscal
Period22nd Fiscal
Period23rd Fiscal
Period24th Fiscal
Period25th Fiscal
Period(Jan. 1, 2012 Jun. 30, 2012)(Jul. 1, 2012 Dec. 31, 2012)(Jan. 1, 2013 Jun. 30, 2013)(Jul. 1, 2013 Dec. 30, 2013)(Jan. 1, 2014 Jun. 30, 2013)

4,622,149

5,050,424

4,998,468

4,976,931

5,094,946

Internal Reserves

24,69923,69922,893

21,981

21,196

Total Cash Distributions

4,597,450

5,026,725

4,975,575

4,954,950

5,073,750(Cash Distribution per Unit)(6,430 yen)

(6,093 yen)

(6,031 yen)

(6,006 yen)

(6,150 yen)

Total Cash Distributions from Net Income

4,597,450

5,026,725

4,975,575

4,954,950

5,073,750(Cash distribution from net income per unit)(6,430 yen)

(6,093 yen)

(6,031 yen)

(6,006 yen)

(6,150 yen)

－

－

－

－

－

(- yen)(- yen)(- yen)(- yen)(- yen)㻌㻌㻌Breakdown㻌

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(5) Future Management Policies and Vital Issues
As for the prospects of the Japanese economy, it is anticipated that private capital investment will increase in line with the recoveryof corporate performances, while growth in external demand is also hoped for in accordance with the developed economies picking
up. With the employment environment staying solid, consumer spending is also likely to grow in a virtuous circle of the economy if
personal income continues to improve. On the other hand, disturbance in the overseas economies including geopolitical risks willremain to be a cause for concern.
In the office property leasing market, the general recovery in the market situation will presumably be a modest one for the moment,with polarization by property further advancing amid continued improvement in the supply and demand condition. In this regard, JPR
believes it will be able to fully enjoy the positive impact of the market recovery as it has focused on improving tenant satisfaction
through proactive implementation of value enhancement works and provision of elaborate management services. In addition, when
conducting real estate transactions in the market where polarization of earnings by property is anticipated to further advance, it will
become even more important to discern the growth potential of earnings of respective properties. Considering the situation in which
cap rates are decreasing in an environment where monetary easing of a different dimension is being conducted, 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.
Currently, REITs are positioned as powerful buyers of properties. However, their ability to procure funds will be largely affected by
the interest rate levels. As such, JPR will keep attentive monitoring of the future trends in interest rates.
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 in the recovery cycle of the market. Real estate transactions are heading for expansion, as adecrease in purchase cap rate and expected cap rate levels has been observed in the transaction market along with the recovery inthe office property leasing market conditions, and we believe property supply to the transaction market will increase going
forward. As for retail properties as well as office properties in regional cities, which allow us to expect higher yields than theTokyo office properties, JPR will work to invest in strictly selected blue-chip properties that can keep stable revenues at a certain
level in order to complement the stability of earnings from the entire portfolio. JPR will strive to acquire new properties underreasonable terms by negotiating prices based on detailed market studies and property due diligence in considering properties.
JPR will continue to make investment decisions after a proactive collection of information through such sources as sponsors of
the Asset Manager, accurately grasping market trends and carefully researching investment value, including the future potential ofcandidate properties.
Moreover, JPR will continue to investigate asset replacement, centering on properties that do not allow us to expect sustainablegrowth in the future or those that may be sold under favorable terms and conditions.

36
36

Japan Prime Realty Investment Corporation

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,
encourage them to expand office spaces in the same buildings and renew contracts with upward revision of rents throughendeavors to enhance tenant 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 in anticipation of the recovery in the leasing market and accelerate decision making- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction- Reinforce responses to energy saving, business continuity plans and other matters commanding high social requests- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs(6) Fund Procurement
JPR's fundamental policy for fund procurement calls for an efficient combination of long-term steady fund procurement andshort-term fund procurement that emphasizes dynamism. In line with this policy, JPR will procure funds through unsecured andunguaranteed bank borrowings as well as the issuance of investment corporation bonds. JPR will continue to focus on thediversification of fund procurement means and consistently strive to diversify maturities.

(7) Information Disclosure
JPR has positioned the proactive voluntary disclosure of information as one of its key management policies and will voluntarily
disclose information believed to be essential to investment decisions concerning JPR, along with the timely disclosure of items to theTokyo Stock Exchange. JPR is proactively employing its website (http://www.jpr-reit.co.jp/jpr_e/) as well as its specified website forretail investors (http://www.jpr-reit.co.jp/kojin/index.html (Japanese only)) as a vital means for implementing voluntary disclosure,and JPR has promptly disclosed performance information and has provided videos on its primary properties using this site. We arecommitted to further enriching our information disclosure activities.

(8) Significant Subsequent Events
Issuance of unsecured investment corporation bonds
On July 11, 2014, JPR made the following decision to issue investment corporation bonds based on the comprehensive resolution
adopted at the Board of Directors’ meeting held on April 24, 2014. Payment for the investment corporation bonds was completed on
July 22, 2014.
Name of the bonds
Total issue amountInterest rate
Collateral
Redemption method andredemption date
Use of funds
Name of the bonds
Total issue amountInterest rate
Collateral
Redemption method andredemption date
Use of funds

Japan Prime Realty Investment Corporation 20th Series of Unsecured Investment Corporation
Bonds(with special pari passu conditions among specified investment corporation bonds)
2 billion yen
Subscription period
July 11, 2014
0.303% per annum
Payment dateJuly 22, 2014
Unsecured / unguaranteed
Purchase price
100 yen per 100 yen of theinvestment corporation bonds
The total amount of the bonds will be redeemed on July 22, 2019. The bonds may be
repurchased and cancelled at any time on and after the day following the payment date, unlessotherwise determined by the book-entry transfer agent
Redemption of investment corporation bonds
Japan Prime Realty Investment Corporation 21st Series of Unsecured Investment Corporation
Bonds(with special pari passu conditions among specified investment corporation bonds)
4 billion yen
Subscription period
July 11, 2014
1.278% per annum
Payment dateJuly 22, 2014
Unsecured / unguaranteed
Purchase price
100 yen per 100 yen of theinvestment corporation bonds
The total amount of the bonds will be redeemed on July 22, 2026. The bonds may be
repurchased and cancelled at any time on and after the day following the payment date, unlessotherwise determined by the book-entry transfer agent
Redemption of investment corporation bonds

37
37

III. Asset Management Report<Reference Information>
Property acquisition
JPR acquired the following property.
<Shibadaimon Center Building (additional ownership)>
Property overview
Location:

1-10-1 Shibadaimon, Minato-ku, Tokyo (residence indication)

Ownership:

Land: ownership (partially co-ownership)
Building: sectional ownership

Site area:

1,915.50 m2 (equivalent to JPR’s equity interest: 275.78 m2)

Total floor space:

11,419.93 m2 (area under the sectional ownership: 1,021.20 m2)

Structure/Floor:

S/SRC, B1/10F

Completion date:July 1993

Number of tenants:

3

Total leasable area:

1,041.87 m2

Total leased area:

1,041.87 m2

Occupancy rate:

100.0%*The figures as of July 30, 2014 have been entered for the number of tenants, total leasable area, total leased area
and occupancy rate.
Terms and conditions of transaction㻌㻌㻌㻌㻌㻌㻌

Transaction price:

800 million yen

Asset type:㻌 㻌 㻌 㻌Real Estate (Note)

Acquisition date:July 30, 2014

(Note) JPR already owned beneficiary interest in part of the property. JPR executed an additional trust agreementwith the trustee as of July 30, 2014 for the additionally acquired portion and added the portion to the existing
trust property, so that JPR owns trust beneficiary interest in both the portions.

38
38

Japan Prime Realty Investment Corporation

2. Overview of the Investment Corporation(1) Unitholders’ Capital
21st Fiscal
Period as ofJune 30, 2012
5,000,000

22nd Fiscal
Period as ofDecember 31, 2012
5,000,000

23rd Fiscal
Period as ofJune 30, 2013
5,000,000

24th Fiscal
Period as ofDecember 31, 2013
5,000,000

25th Fiscal
Period as ofJune 30, 2014
5,000,000

Total number of units issued andoutstanding

715,000

825,000

825,000

825,000

825,000

Unitholders' capital (millions of yen)

171,339

192,044

192,044

192,044

192,044

Total number of unitholders

14,148

14,525

13,965

12,877

12,425

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the 10 largest investors according to the percentage of their owned investment units to the total number ofunits outstanding as of the end of the 25th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units
191,995

Units Outstanding (%)
23.27

Japan Trustee Services Bank, Ltd. (Trust Account)

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

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

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

51,936

6.29

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

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

51,056

6.18

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

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

37,558

4.55

Tokyo Tatemono Co., Ltd.

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

29,300

3.55

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,000

3.03

Meiji Yasuda Life Insurance Company

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

24,0002.90

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

1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)

12,411

1.50

Nomura Bank (Luxembourg) S. A. (Standing Proxy:
Sumitomo Mitsui Banking Corporation)

Batiment A, 33, Rue de Gasperich, L-5826,
Luxembourg(1-2-3 Otemachi, Chiyoda-ku, Tokyo)

10,850

1.31

MetLife Insurance K. K. (Standing Proxy: General Manager
of Securities Business Department, Citibank Japan, Ltd.)

4-1-3 Taihei, Sumida-ku, Tokyo

8,995

1.09

443,101

53.70

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

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 25th fiscal period are as follows.
Position
Executive Officer
Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

Name

Other Current Assignments

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office

Sosuke Yasuda

Advisor, Gyosei Audit Corporation
Group representative partner, GYOSEI Certified
Public Tax & Accountants’ Co.
Outside Auditor, MS&AD Insurance Group Holdings

Masato Denawa

Partner Attorney, Spring Partners

Ernst & Young
ShinNihon LLC－

Total Directors' Fee
during the 25th Fiscal
Period (thousands of yen)
2,400

4,200

Numberof Owned
Units
－

－

－
16,200－(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 issuanceof investment corporation bonds.

39
39

III. Asset Management Report

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 25th fiscal period are as follows.
Outsourcing Category
Asset management company

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.
Mizuho Securities Co., Ltd.
Nomura Securities Co., Ltd.

40
40

Japan Prime Realty Investment Corporation

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset TypeReal estate

Real estate in trustArea

24th Fiscal Period(as of December 31, 2013)

25th Fiscal Period(as of June 30, 2014)

Central Tokyo

Assets owned by JPR(thousands of yen)
80,654,243

Percentage of total
assets (%)
19.5

Assets owned by JPR(thousands of yen)
79,506,311

Percentage of total
assets (%)
19.2

Greater Tokyo

61,805,008

14.9

61,416,499

14.8

Other Cities

21,873,507

5.3

21,724,252

5.2

Central Tokyo

131,782,696

31.8

132,687,363

32.0Greater Tokyo

51,074,314

12.3

50,751,325

12.3

Other Cities

44,035,454

10.6

43,915,711

10.6

㻌 22,749,249(－)
413,974,474(391,225,225)

5.5
(－)
100.0
㻌 㻌 㻌 (94.5)

㻌 24,103,193(－)
414,104,657(390,001,463)

5.8
(－)
100.0
㻌 㻌 㻌 (94.2)

Deposits and otherassets－Total assets－(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheet 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 endof the 25th fiscal period.
Book Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

The Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

11,034.78

100.0

11.8

OfficeOlinas Tower

29,083,531

23,987.40

22,596.64

94.2

7.1

OfficeShinjuku Center Bldg.

22,130,353

8,863.98

8,413.81

94.9

3.3

OfficeBYGS Shinjuku Bldg.

15,641,001

15,216.93

15,031.08

98.8

3.8

OfficeJPR Sendagaya Bldg.

15,136,585

6,177.74

6,177.74

100.0

2.1

OfficeKanematsu Bldg.

14,724,997

7,994.02

7,994.02

100.0

2.7

OfficeKawasaki Dice Bldg.

14,157,247

12,116.35

11,810.73

97.5

2.9

RetailJPR Umeda Loft Bldg.

12,482,939

18,586.97

18,586.97

100.0

2.8

RetailJPR Shibuya Tower Records
Bldg.

11,601,024

8,076.85

8,076.85

100.0

2.5

RetailOfficeProperty Name

Yakuin Business Garden
Total

11,137,665

16,654.33

16,441.63

98.7

2.8

184,483,604

128,709.35

126,164.25

98.0

41.8

Asset Class(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. 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, the leasable floor space, leased floor space and occupancy rate enteredfor each of these buildings are the figures concerning the sub-lessee of the tenant.

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41

III. Asset Management Report(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 25th fiscal period (June 30, 2014).

Area Type

Property Name

Location

Form ofOwnership

Book Valueas of June 30,
2014(thousands of yen)

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

Beneficiary interest

14,724,997(Note)
11,700,000

Kanematsu Bldg. Annex

17-5 Kyobashi 2-chome, Chuo-ku, Tokyo
17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo
3-3 Kojimachi 4-chome, Chiyoda-ku, Tokyo
21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo
13-23 Shibaura 4-chome, Minato-ku, Tokyo
8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
8-7 Yaesu 2-chome, Chuo-ku, Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo

Beneficiary interest

2,434,431

2,300,000

Beneficiary interest

1,961,322

2,290,000

Beneficiary interest

2,388,227

2,920,000

Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.

Beneficiary interest

3,372,581

2,730,000

Beneficiary interest

10,955,895

10,800,000

Beneficiary interest

2,665,517

2,750,000

Beneficiary interest

2,975,347

2,790,000

Beneficiary interest

5,255,191

4,650,000

Beneficiary interest

3,025,602

4,460,000

Beneficiary interest

8,725,677

Real estate

176,583

19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Real estate

15,641,001

Real estate

610,855

801,000

Real estate

22,130,353

12,900,000

Real estate

3,905,987

2,420,000

Shinagawa Canal Bldg.

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

Real estate

1,791,727

1,750,000

Rokubancho Bldg.

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

Real estate

2,880,052

3,200,000

JPR Harajuku Bldg.

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

Beneficiary interest

8,752,339

7,060,000

Tokyo Tatemono Kyobashi Bldg.

Real estate

5,349,096

5,130,000

Beneficiary interest

4,999,746

6,020,000

JPR Sendagaya Bldg.

6-18 Kyobashi 3-chome, Chuo-ku, Tokyo
11-12 Nihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
23-5 Sendagaya 4-chome, Shibuya-ku, Tokyo

Real estate

15,136,585

11,100,000

Ginza Sanwa Bldg.
The Otemachi Tower (Land with
Leasehold Interest)
Science Plaza-Yonbancho Plaza

6-1 Ginza 4-chome, Chuo-ku, Tokyo
6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Tokyo
9-6, etc., Yonbancho, Chiyoda-ku, Tokyo

Real estate

3,638,622

3,360,000

Beneficiary interest

38,388,259

38,700,000

Beneficiary interest

2,694,256

2,850,000

Shibadaimon Center Bldg.

1-10-11 Shibadaimon, Minato-ku, Tokyo

Beneficiary interest

3,435,878

3,820,000

JPR Shibuya Tower Records Bldg.

22-14 Jinnan 1-chome, Shibuya-ku, Tokyo

Beneficiary interest

11,601,024

12,900,000

JPR Daikanyama

20-5 Daikanyamacho, Shibuya-ku, Tokyo

Real estate

2,191,311

1,520,000

JPR Jingumae 432

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

Beneficiary interest

4,331,065

3,410,000

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
Arca East

1-25, Shinjuku 3-chome, Shinjuku-ku, Tokyo

Real estate

2,695,286

2,560,000

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

Real estate

3,358,849

2,800,000

2-1 Kinshi 3-chome, Sumida-ku, Tokyo

Beneficiary interest

4,485,373

6,180,000

JPR Chiba Bldg.

Beneficiary interest

2,352,782

1,680,000

Beneficiary interest

2,607,560

2,380,000

Beneficiary interest

1,475,183

1,620,000

Kawaguchi Center Bldg.

1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba
17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama

Beneficiary interest

7,126,777

7,310,000

JPR Ueno East Bldg.

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

Real estate

3,062,732

4,250,000

Beneficiary interest

778,523

Real estate

2,174,178

Real estate

5,476,636

6,560,000

Real estate

5,678,800

5,500,000

Real estate

29,083,531

33,700,000

Real estate

6,927,601

7,050,000

Beneficiary interest

6,187,934

6,480,000

MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.

Central Tokyo

OfficeOval Court Ohsaki Mark West
Shinjuku Square Tower
Shinjuku Square Tower(additional acquisition in 14th period)
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

RetailJPR Nihonbashi-horidome Bldg.

JPR Yokohama Nihon Odori Bldg.

OfficeShinyokohama 2nd Center Bldg.

Greater Tokyo(thousands of yen)

Kanematsu Bldg.
JPR Ningyo-cho Bldg.

Tachikawa Business Center Bldg.
Tachikawa Business Center
Bldg.(additional acquisition in 11th
period)Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East

42
42

Appraisal Valueas of June 30,
2014

22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo

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
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama

7,486,000
13,600,000

2,970,000

Japan Prime Realty Investment Corporation

Area Type

Property Name

Form ofOwnership

Location

Appraisal Valueas of June 30,
2014Book Valueas of June 30,
2014

RetailGreater Tokyo(thousands of yen)Tanashi ASTA

1-1 Tanashicho 2-chome, Nishitokyo, Tokyo

Beneficiary interest

7,624,646(Note)
12,600,000

Cupo-la Main Bldg.

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
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
6-12 Hakataeki-mae 2-chome, Hakata-ku,
Fukuoka, Fukuoka
24-15 Sakae 1-chome, Naka-ku, Nagoya, Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
16-7 Chayamachi, Kita-ku, Osaka, Osaka
2-11 Minami-Senba 4-chome, Chuo-ku, Osaka,Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo
2-19 Chayamachi, Kita-ku, Osaka, Osaka

Real estate

1,836,974

2,580,000

Real estate

7,176,043

5,310,000

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

OfficeSompo Japan Sendai Bldg.

Other Cities

Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Umeda Loft Bldg.

Retail(thousands of yen)

Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

Beneficiary interest

3,955,296

4,030,000

Beneficiary interest

14,157,247

15,000,000

Beneficiary interest

1,744,389

2,270,000

Beneficiary interest

4,135,269

3,240,000

Beneficiary interest

3,105,242

2,650,000

Beneficiary interest

1,391,160

1,350,000

Beneficiary interest

2,281,062

3,330,000

Beneficiary interest

1,361,147

1,600,000

Beneficiary interest

2,221,916

2,110,000

Beneficiary interest

2,184,111

2,110,000

Beneficiary interest

1,855,104

1,620,000

Real estate

4,084,089

2,850,000

Real estate

11,137,665

11,600,000

Beneficiary interest

12,482,939

13,400,000

Beneficiary interest

5,171,221

4,450,000

Real estate

6,502,497

6,530,000

Beneficiary interest

5,982,146
390,001,463

4,830,000
379,917,000(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.”

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

Area Type

Property Name

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

OfficeCentral Tokyo

Shin-Kojimachi Bldg.

24th Fiscal Period
25th Fiscal Period(from Jul. 1, 2013 to Dec. 31, 2013)(from Jan. 1, 2014 to Jun. 30, 2014)
RentalRentalNumberRatio to Number Occupancy
Ratio toOccupancy Revenues
Revenues
of
Total
of
Rate at
Total
Rate atthroughout
throughout
Tenants
Rental Tenants
PeriodRentalPeriod End
PeriodPeriodat Period
Revenues at PeriodEnd
Revenues(%)(thousands(thousands
End
(%)
End
(%)
(%)
of yen)of yen)9
95.0
377,4322.8
9100.0
353,3492.6
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
4
100.0
84,4180.6
4100.0
88,1170.6
1491.1
105,0720.8
1491.7
100,233
0.7

JPR Crest Takebashi Bldg.

5

51.4

73,406

0.5

6

100.0

55,956

0.4

MS Shibaura Bldg.

8

100.0

401,223

3.0

8

100.0

410,238

3.0

Gotanda First Bldg.
Fukuoka Bldg.
Fukuoka Bldg.
(additional acquisition in 7th period)
JPR Ichigaya Bldg.

2

100.0
100.0

133,800(Note 2)1.0
(Note 2)

2

100.0

131,533

1.0

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)9100.0

167,709

1.2

10

100.0

156,332

1.1

Oval Court Ohsaki Mark West

3

100.0

180,721

1.3

3

100.0

179,886

1.3

97.4

197,237

1.5

97.4

193,278

1.4

97.4

2,969

0.0

Shinjuku Square Tower
Shinjuku Square Tower(additional acquisition in 14th period)
BYGS Shinjuku Bldg.

1

25

97.4

3,030

0.0

25

25

92.2

495,574

3.6

25

98.8

513,661

3.7

Across Shinkawa Bldg. Annex

3

84.0

42,315

0.3

4

100.0

32,665

0.2

Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.

30
1
4
1

90.3
100.0
89.9
100.0

439,630(Note 2)58,963(Note 2)

3.2
(Note 2)0.4
(Note 2)

30
1
5
1

94.9
100.0
100.0
100.0

456,379(Note 2)
62,033(Note 2)

3.3
(Note 2)0.5
(Note 2)43
43

III. Asset Management Report

Area Type

Property Name

JPR Harajuku Bldg.

OfficeOfficeOfficeRetailOther Cities

RetailGreater Tokyo

RetailCentral Tokyo

Tokyo Tatemono Kyobashi Bldg.

24th Fiscal Period
25th Fiscal Period(from Jul. 1, 2013 to Dec. 31, 2013)(from Jan. 1, 2014 to Jun. 30, 2014)
RentalRentalNumberRatio to Number Occupancy
Ratio toOccupancy Revenues
Revenues
of
Total
of
Rate at
Total
Rate atthroughout
throughout
Tenants
Rental Tenants
PeriodRentalPeriod End
PeriodPeriodat Period
Revenues at PeriodEnd
Revenues(%)(thousands(thousands
End
(%)
End
(%)
(%)
of yen)of yen)9100.0
221,2471.6
9
100.0
223,8481.6
2
24.1(Note 2) (Note 2)5
56.9
106,549
0.8

JPR Nihonbashi-horidome Bldg.

7

100.0

196,443

1.4

6

100.0

185,901

1.4

JPR Sendagaya Bldg.

6

100.0

240,205

1.8

6

100.0

232,531

1.7

Ginza Sanwa Bldg.
The Otemachi Tower (Land with
Leasehold Interest)
Science Plaza-Yonbancho Plaza

8

100.0

117,738

0.9

8

100.0

116,800

0.9

1

100.0

1,469,500

10.8

2

100.0

1,499,750

10.9

23

90.2

15,248

0.1

24

96.6

117,464

0.9

Shibadaimon Center Bldg.
JPR Shibuya Tower Records Bldg.
JPR Daikanyama

7
1
3

100.0
100.0
76.5

18,884(Note 2)
27,4360.1(Note 2)
0.2

7
1
4

100.0
100.0
100.0

135,801(Note 2)33,7591.0(Note 2)
0.2

JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
Arca East

6
1

86.6
100.0

69,446(Note 2)0.5
(Note 2)

5
1

63.7
100.0

56,691(Note 2)0.4
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

5

93.1

254,835

1.9

5

93.1

253,455

1.8

JPR Chiba Bldg.

37

92.3

132,527

1.0

37

97.2

130,961

1.0

JPR Yokohama Nihon Odori Bldg.

13

100.0

130,576

1.0

13

100.0

130,085

0.9

Shinyokohama 2nd Center Bldg.

16

91.4

96,388

0.7

16

91.4

95,311

0.7

Kawaguchi Center Bldg.

42

93.8

363,219

2.7

44

96.8

385,080

2.8

JPR Ueno East Bldg.

8

100.0

171,976

1.3

8

100.0

178,099

1.3

100.0

62,9520.5

100.0

53,7590.4

100.0

90,789

0.7

100.0
91.2

(Note 2)
321,427(Note 2)
2.3

Tachikawa Business Center Bldg.
Tachikawa Business Center Bldg.
(additional acquisition in 11th period)
Rise Arena Bldg.
Yume-ooka Office Tower

18
1
34

19

96.6

90,549

0.7

100.0
95.4

(Note 2)
322,397(Note 2)2.4

135

Olinas Tower

10

94.2

1,007,396

7.4

10

94.2

1,013,414

7.4

Tokyo Tatemono Yokohama Bldg.

14

100.0

302,248

2.2

14

100.0

303,798

2.2

Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square

4
1
1
1
3

100.0
100.0
100.0
100.0
100.0

268,678(Note 2)
(Note 2)
(Note 2)
129,3612.0(Note 2)
(Note 2)
(Note 2)
1.0

4
1
1
1
3

100.0
100.0
100.0
100.0
100.0

265,914(Note 2)
(Note 2)
(Note 2)
128,573

1.9(Note 2)
(Note 2)
(Note 2)
0.9

Kawasaki Dice Bldg.

29

98.7

487,108

3.6

28

97.5

485,210

3.5

Niigata Ekinan Center Bldg.

8

100.0

127,691

0.9

8

100.0

128,193

0.9

Tokyo Tatemono Honmachi Bldg.

10

94.2

163,746

1.2

10

94.0

155,692

1.1

JPR Hakata Bldg.

33

97.7

145,963

1.1

37

85.3

109,828

0.8

JPR Naha Bldg.

20

95.3

85,023

0.6

22

100.0

85,957

0.6

Sompo Japan Sendai Bldg.

13

95.3

179,001

1.3

13

95.3

179,545

1.3

Sompo Japan Wakayama Bldg.

12

98.3

112,214

0.8

12

98.3

111,354

0.8

Tenjin 121 Bldg.

16

100.0

99,828

0.7

16

100.0

97,916

0.7

JPR Dojima Bldg.

8

88.8

97,804

0.7

8

100.0

112,408

0.8

JPR Hakata-chuo Bldg.

5

87.3

79,215

0.6

6

100.0

75,0590.5

JPR Nagoya Fushimi Bldg.

3

89.7

130,769

1.0

3

89.7

130,268

0.9

Yakuin Business Garden
JPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

16
1
1
1
6

94.8
100.0
100.0
100.0
100.0

442,255(Note 2)
(Note 2)
(Note 2)
141,549

3.3(Note 2)
(Note 2)
(Note 2)
1.0

16
1
1
1
6

98.7
100.0
100.0
100.0
100.0

437,778(Note 2)
(Note 2)
(Note 2)
138,447

3.2(Note 2)
(Note 2)
(Note 2)
1.0

Total

610

96.5

13,591,659

100.0

628

97.8

13,734,191

100.0(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
Plaza-Yonbancho Plaza, Rise Arena 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, Rise Arena Bldg. and Kawasaki Dice
Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance with the leaseconditions 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.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Itemized Portfolio Assets above.
There is no incorporation of main specific assets which are main investment targets of JPR other than those listed under (3) above asof the end of the 25th fiscal period.

44
44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 currently planned renovations, etc. for JPR-owned real estate and entrusted
real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses include portions that areclassified as expenses in accounting.
Planned (millions of yen)
Total
Value

Payment
duringthe 25th
Fiscal Period

AmountAlready
Paid

Aug. 2014 ~ Sep. 2014

196

－

－

2nd phase of replacement of air
conditioning units

Jul. 2014 ~ Dec. 2014

103

－

－

Chiyoda Ward,Tokyo

1st phase of replacement of air
conditioning units

Oct. 2014 ~ Dec. 2014

85

－

－

Fukuoka Bldg.

Chuo Ward, Tokyo

5th phase of replacement of air
conditioning units

Jul. 2014 ~ Sep. 2014

50

－

－

MS Shibaura Bldg.

Minato Ward,Tokyo

Installation of office automation floors
and carpet tiles

Jul. 2014 ~ Aug. 2014

38

－

－

Tokyo Tatemono
Honmachi Bldg.

Osaka City, Osaka

Replacement of 4th – 9th floor drainage
pipes

Jul. 2014 ~ Oct. 2014

31

－

－

Shinyokohama 2nd
Center Bldg.

Yokohama City,
Kanagawa

2nd phase of renewal of cubicle-type highvoltage equipment on rooftop

Sep. 2014 ~ Sep. 2014

20

－

－

Property Name

Location

PurposeSchedule

MS Shibaura Bldg.

Minato Ward,Tokyo

1st phase of replacement of air
conditioning units

Sompo Japan
Wakayama Bldg.

Wakayama City,
Wakayama

Shin-Kojimachi
Bldg.

(2) Capital Expenditures during the 25th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 25th 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 and installation of office automation floors for leased offices with the aim of attracting
new tenants. In addition, aside from these constructions, JPR conducted construction of 454 million yen (Note), which wasappropriated as expenditures for repair and maintenance.
Property Name

Construction
Expenses(millions of yen)

Location

Purpose

PeriodSompo Japan Wakayama
Bldg.

Wakayama City, Wakayama

1st phase of replacement of
air conditioning units

Mar. 2014 ~ Jun. 2014

110

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

3rd phase of replacement of
substation facilities

Oct. 2011 ~ Mar. 201489

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

4th phase of renewal of
passenger elevators

Mar. 2012 ~ Mar. 2014

71

Fukuoka Bldg.

Chuo Ward, Tokyo

4th phase of replacement of
air conditioning units

Sep. 2013 ~ Apr. 2014

44

Repair of common areas, installation of office automation
floors, replacement of air conditioning units, etc.

365

Other Properties

Total

681

(Note) Expenditures for repair and maintenance included 10 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

45
45

III. 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 andmaintenance plans for individual properties.
(Millions of yen)

Operation Period

21st Fiscal Period(Jan. 1, 2012 Jun. 30, 2012)

22nd Fiscal Period(Jul. 1, 2012 Dec. 31, 2012)

23rd Fiscal Period(Jan. 1, 2013 Jun. 30, 2013)

24th Fiscal Period(Jul. 1, 2013 Dec. 31, 2013)

25th Fiscal Period(Jan. 1, 2014 Jun. 30, 2014)

Balance of deposits at
beginning of current
period

746

799

810

816

805

Deposits during theperiod

410

376

376

565

591

Amounts used from
deposits during the period

357

365

370

576

471

Deposits carried forward
to the next period

799

810

816

805

925

46
46

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
24th Fiscal Period(Jul. 1, 2013 - Dec. 31, 2013

Item(a) Asset Management Fees (Note)

25th Fiscal Period(Jan. 1, 2014 - Jun. 30, 2014)
473,242478,665

Fixed compensation

75,00075,000

Incentive-based compensation 1

244,980

246,707

Incentive-based compensation 2

153,262

156,957(b) Administrative Service and Custodian Fees

81,486

79,487(c) Directors' Fee

6,600

6,600

(d) Trust Fees

35,16735,674(e) Other Expenses
Total

91,868108,811

688,364

709,239(Note) Aside from the amounts of the asset management fees entered above, a total of 15,200 thousand yen for the 24th fiscal period has been paid for asset managementof the acquired properties and has been included in the book value of each property.

(2) Status of Loans Payable
As of June 30, 2014 JPR has the following loans payable.

LenderLoans

PayableThe Norinchukin Bank
The Hachijuni Bank, Ltd.
Total

Long-Term Loans Payable

Short-Term

Category

Drawdown
Date

Balance as ofJan. 1, 2014
(millions ofyen)

Dec. 5, 2013

1,000

Sep. 24, 2013

Jun. 26, 2009
Feb. 4, 2011
Mar. 30, 2012
Mizuho Bank, Ltd.
Dec. 5, 2012
Nov. 27, 2013
Jun. 27, 2014
Jun. 26, 2009
Mar. 25, 2011
Aug. 8, 2012
Bank of Tokyo-Mitsubishi Aug. 8, 2012
UFJ, Ltd.
Sep. 5, 2012
Dec. 5, 2012
Nov. 27, 2013
Jun. 27, 2014
Jun. 29, 2009
Mar. 30, 2012
Sumitomo Mitsui Banking
Dec. 5, 2012
Corporation
Jun. 27, 2013
Jun. 27, 2014
Jul. 3, 2012
Aug. 8, 2012
Aozora Bank, Ltd.
Aug. 27, 2012
Aug. 30, 2012
Sep. 30, 2013
Apr. 5, 2012
Shinsei Bank, Ltd.
Sep. 24, 2013
Mar. 30, 2012
Mizuho Trust & Banking
Co., Ltd.
Feb. 4, 2013
Aug. 29, 2011
Mitsubishi UFJ Trust andAug. 29, 2011
Banking Corporation
Jun. 27, 2012
Jun. 26, 2009
Development Bank ofJun. 27, 2013
Japan Inc.
Dec. 5, 2013
Jul. 7, 2011
The Bank of Fukuoka, Ltd. Apr. 11, 2012
Sep. 24, 2013
Apr. 11, 2012
Sompo Japan Nipponkoa
Insurance Inc. (Note 10)
Jun. 27, 2012
Meiji Yasuda Life
Jun. 21, 2011
Insurance Company

Balance as of
AverageJun. 30,
Interest Rate(%)
2014
(Note 1)(millions of(Note 2)
yen)
1,000

0.397

Repayment
Date

Repayment
MethodUse

Remarks

Dec. 5, 2014

Principal
lump sum
repayment
on maturity(Note 3)

Unguaranteed/

1,000

1,000

0.464 Sep. 24, 2014

2,000
5,100
5,000
7,000
2,000
3,000
－
4,253
5,000
1,000
1,000
3,000
1,000
3,000
－
2,550
6,400
1,000
3,000
－
900
2,000
2,000
2,000
1,000
5,000
2,000
4,000
3,000
5,000
1,000
1,000
3,100
820
2,000
2,000
2,000
1,000
2,000
2,000

2,000
－
5,000
7,000
2,000
3,000
5,000
－
5,000
1,000
1,000
3,000
1,000
3,000
4,000
－
6,400
1,000
3,000
2,500
900
2,000
2,000
2,000
1,000
5,000
2,000
4,000
3,000
5,000
1,000
1,000
3,000
820
2,000
2,000
2,000
1,000
2,000
2,000

2.449
1.414
1.093
1.027
0.970
1.178
2.390
1.198
1.178
0.948
0.919
1.027
0.970
0.889
2.440
1.093
1.027
1.265
1.033
0.994
1.178
0.985
1.146
1.069
1.397
1.076
1.093
1.076
1.184
0.924
0.843
3.190
1.449
1.188
1.170
0.902
0.911
0.981
0.874

3,736

3,670

1.800 Jun. 21, 2018

Jun. 27, 2014
Feb. 4, 2016
Mar. 30, 2017
Dec. 5, 2019Nov. 27, 2020
Jun. 27, 2023
Jun. 27, 2014
Mar. 25, 2016
Aug. 8, 2019
Aug. 8, 2017
Sep. 5, 2017
Dec. 5, 2019Nov. 27, 2020
Jun. 25, 2021
Jun. 27, 2014
Mar. 30, 2017
Dec. 5, 2019
Jun. 26, 2020
Jun. 27, 2022
Jul. 3, 2017
Aug. 8, 2019
Aug. 25, 2017
Aug. 30, 2018
Sep. 24, 2020
Apr. 5, 2019
Sep. 24, 2020
Mar. 30, 2017
Feb. 4, 2020
Aug. 29, 2017
Aug. 31, 2015
Jun. 26, 2015
Jun. 27, 2019
Jun. 25, 2021
Dec. 3, 2021
Jul. 7, 2016
Oct. 9, 2015
Sep. 24, 2019
Oct. 11, 2016
Dec. 25, 2015

Unsecured/
Non-Subordinated(Note 4)
Principal
lump sum
repayment
on maturity(Note 5)
Principal
lump sum
repayment
on maturity(Note 6)

Unsecured/Principal
lump sum
repayment
on maturity(Note 3)

Unguaranteed/
Non-Subordinated(Note 7)
Principal
lump sum
repayment
on maturity(Note 8)47
47

III. Asset Management Report

Category

Lender

ORIX Bank Corporation
Shinkin Central BankThe Shinkumi Federation
Bank
Taiyo Life Insurance
CompanyLong-Term Loans Payable

The Chugoku Bank, Ltd.
The Nishi-Nippon City
Bank, Ltd.
Sumitomo Life Insurance
Company
Zenkyoren (National
Mutual Insurance
Federation of Agricultural
Cooperatives)
Daido Life Insurance
Company
Resona Bank, Limited
The Iyo Bank, Ltd.
Tokio Marine & Nichido
Fire Insurance Co., Ltd.
The Tokyo Tomin Bank,
Limited (Note 9)
The Hachijuni Bank, Ltd.
The Bank of Yokohama,Ltd. (Note 9)
The Minato Bank, Ltd.
(Note 9)The Yamaguchi Bank, Ltd.
(Note 9)The Chiba Kogyo Bank,
Ltd. (Note 9)
Total

Feb. 4, 2013
Nov. 27, 2013
Dec. 5, 2013

Balance as of
AverageJun. 30,
Interest Rate
Repayment Repayment
(%)
2014
Date
Method(Note
1)(millions of(Note 2)
yen)
1,000
1,000
0.786 Feb. 5, 2018
2,000
2,000
0.762 May 27, 2019
3,000
3,000
0.689 Dec. 5, 2018

Drawdown
Date

Balance as ofJan. 1, 2014
(millions ofyen)Feb. 4, 2013

3,000

3,000

0.786

Sep. 24, 2010
Jun. 4, 2013
Dec. 27, 2013
Apr. 11, 2012
Sep. 24, 2013

1,000
1,000
1,000
2,000
1,000

1,000
1,000
1,000
2,000
1,000

1.275 Sep. 24, 2015
0.949 Jun. 4, 2018
1.011 Dec. 25, 2020
0.902 Oct. 9, 2015
0.758 Sep. 25, 2018

May 27, 2011

3,000

3,000

1.149 May 27, 2016

Jun. 4, 2008

2,000

2,000

2.257

Mar. 26, 2008

2,000

2,000

1.725 Mar. 26, 2015

Use

Remarks

Feb. 5, 2018

Jun. 4, 2015
Principal
lump sum
repayment (Note 3)
Feb. 5, 2015on
maturity
Dec. 27, 2018
Mar. 30, 2017
Oct. 9, 2015

Feb. 5, 2008
Dec. 27, 2013
Mar. 30, 2012
Apr. 11, 2012

1,000
1,000
2,000
1,000

1,000
1,000
2,000
1,000

1.666
0.710
1.093
0.902

Dec. 27, 2013

1,000

1,000

0.710 Dec. 27, 2018

Mar. 30, 2012

1,000

1,000

0.653 Sep. 30, 2015

Apr. 11, 2012

1,000

1,000

0.902

Mar. 30, 2012

1,000

1,000

0.653 Sep. 30, 2015

Mar. 30, 2012

800

800

0.653 Sep. 30, 2015

Mar. 30, 2012

500

500

0.653 Sep. 30, 2015

Mar. 30, 2012

100

100

0.653 Sep. 30, 2015

133,259

132,690

Unsecured/
Unguaranteed/
Non-SubordinatedOct. 9, 2015

(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement 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, except those in a syndicated loan (Note 9).
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 5,100 million yen
was made on maturity date June 27, 2014.
(Note 5) The loans payable are subject to repayment of 83 million yen on December 27, 2009 and hereafter every 6 months. In addition, repayment of 4,253 million yen
was made on maturity date June 27, 2014.
(Note 6) The loans payable are subject to repayment of 50 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 2,550 million yen
was made on maturity date June 27, 2014.
(Note 7) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million yen
will be made on maturity date June 27, 2019.
(Note 8) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and hereafter every 6 months. In addition, repayment of 3,208 million yen will bemade on maturity date June 21, 2018.
(Note 9) The loans are with floating interest rates.
(Note 10) Sompo Japan Insurance Inc. changed its company name to Sompo Japan Nipponkoa Insurance Inc. following a merger on September 1, 2014.

48
48

Japan Prime Realty Investment Corporation(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of June 30, 2014 are as follows.
Balance as of
Balance as of
CouponRate
Jan. 1, 2014
Jun. 30, 2014(%)
(millions of yen) (millions of yen)

Name

Issue Date

Third Series ofInvestment
Corporation Bonds

Feb. 12, 2004

5,000

－

2.32

Feb. 12, 2014

Sixth Series ofInvestment
Corporation Bonds

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4, 2014

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14, 2026

Ninth Series ofInvestment
Corporation Bonds

Jul. 23, 2007

6,000

6,000

2.10

Jul. 23, 2014

Eleventh Series ofInvestment
Corporation Bonds

Mar. 12, 2010

6,000

6,000

1.68

Mar. 12, 2015

Twelfth Series ofInvestment
Corporation Bonds

May 21, 2010

7,000

7,000

1.27

May 21, 2015

Thirteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

7,000

7,000

0.95

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.34

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

5,000

5,000

0.68

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.03

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds

May 31, 2013

5,000

5,000

0.65

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds

May 31, 2013

2,000

2,000

1.46

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds

Feb, 5, 2014

1.11

Feb. 5, 2024

Total

－

5,000

56,50056,500Maturity Date

Redemption
MethodUse

Remarks

Purchase ofproperties andrepaymentof loans(Note 1)

(Note 2)

Repayment ofloans

Purchase ofproperties
Bulletrepayment

Redemption of
investment
corporation
bonds andrepayment ofloans(Note 3)

Repayment ofloans

Redemption of
investment
corporation
bonds(Note 1) These investment corporation bonds are equipped with the same rank rider limited among investment corporation bonds, and with limitations on private
placement among a small number of investors and on resale among qualified institutional investors.
(Note 2) These investment corporation bonds are equipped with the same rank rider limited among investment corporation bonds and limitations on resale among
qualified institutional investors.
(Note 3) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.

49
49

III. Asset Management Report

6. Acquisitions and Sales during the 25th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
JPR made no acquisition or sale of real estate and asset-backed securities in the 25th fiscal period.

(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 25th fiscal period.

(3) Survey on Values of Specified Assets, etc.
JPR made no survey on values of specified assets, etc. in the 25th fiscal period.

(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of specified assets or other deals with interested parties and major shareholders were conducted during the 25th
fiscal period.
2) Value of Fee Expenses(Thousands of yen)

Category

Total Paid Fees(A)

Management Fees (Note 2)

Breakdown of Transaction with Interested Parties and Major
Shareholders (Note 1)
Paid Party

242,982

Outsourcing Fees

525,916

Tenant Brokerage Fees

23,040Advertising Cost of the Company

5,020

Paid Amount (B)Ratio to Total
Amount(B/A))

Tokyo Tatemono Co., Ltd.

208,014

85.6%

Yasuda Real Estate Co., Ltd.

12,202

5.0%

Taisei-Yuraku Real Estate Co., Ltd.

3,279

1.3%

Tokyo Tatemono Co., Ltd.

411,446

78.2%

Yasuda Real Estate Co., Ltd.

36,397

6.6%

Tokyo Tatemono Co., Ltd.

892

3.9%

Yasuda Real Estate Co., Ltd.

821

3.6%

E-State Online Co., Ltd.

299

6.0%

(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreementwith JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27of the regulation 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 15,800 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 25th fiscal period.
Tokyo Tatemono Co., Ltd.

383,634 thousand yen

Yasuda Real Estate Co., Ltd.

36,506 thousand yen

Tokyo Real Estate Management Co., Ltd.

138,750 thousand yen

Shinjuku Center Building Management Co., Ltd.

338,344 thousand yen

Taisei-Yuraku Real Estate Co., Ltd.

318 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.

50
50

Japan Prime Realty Investment Corporation

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
No change has been made.

51
51

III. Asset Management Report

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
PeriodRatio to Total Units Issued
and Outstanding (%)

16th Fiscal Period(Jul. 1, 2009 – Dec. 31, 2009)

100

20

0.0

17th Fiscal Period(Jan. 1, 2010 – Jun. 30, 2010)

100

20

0.0

18th Fiscal Period(Jul. 1, 2010 – Dec. 31, 2010)

100

20

0.0

19th Fiscal Period(Jan. 1, 2011 – Jun. 30, 2011)

100

20

0.0

20th Fiscal Period(Jul. 1, 2011 – Dec. 31, 2011)

100

20

0.0

21st Fiscal Period(Jan. 1, 2012 – Jun. 30, 2012)

100

20

0.0

22nd Fiscal Period(Jul. 1, 2012 – Dec. 31, 2012)

100

20

0.0

23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

100

20

0.0

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)

100

20

0.0

25th Fiscal Period(Jan. 1, 2014 – Jun. 30, 2014)

100

20

0.0

(Note) Total investment at end of period represents the acquisition price.

52
52

Total Investment at End of
Period (Note)(millions of yen)Japan Prime Realty Investment Corporation

9. 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
25th fiscal period include the following:
Date of Board of
Directors
Meeting

Approved Item

Overview

January 17, 2014

Consignment of administrative
services concerning the issuance of the
Nineteenth Series of Unsecured
Investment Corporation Bonds (Note)

JPR consigned the administrative services related to the issuance of the Nineteenth Series ofUnsecured Investment Corporation Bonds to Mizuho Securities Co., Ltd., Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd., Daiwa Securities Co., Ltd., SMBC Nikko Securities Inc.
and Mizuho Bank, Ltd., based on the decision by the executive director to issue the Bonds.

(Note) A comprehensive resolution on the issuance of the Investment Corporation Bonds was approved at JPR’s Board of Directors meeting held on April 25, 2013. Basedon this approval, JPR issued the Nineteenth Series of Unsecured Investment Corporation Bonds on February 5, 2014.

(2) Other
Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis asset management report.

53
53

IV. Financial Statements(1) Balance Sheets(Thousands of yen)
End of 24th Fiscal Period

End of 25th Fiscal Period(Dec. 31, 2013)(Jun. 30, 2014)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net*111,557,849
11,517,632
336,831
140,576
9,509

22,139,475

23,562,400

57,160,036(9,805,723)

57,363,236(10,567,703)

47,354,313

㻌

*1

46,795,533

Buildings in trust
Accumulated depreciation

82,586,390(23,401,876)

83,036,800(24,402,931)

Buildings in trust, net

59,184,514

58,633,868

44,971(11,469)

45,366(12,774)

Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation

33,501

32,591

116,410(57,188)

120,534(61,138)

Structures in trust, net

59,22259,395

Machinery and equipment
Accumulated depreciation

725,203(314,764)

725,345(333,349)

Machinery and equipment, net*1

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

410,438*1

391,995

1,576,395(1,078,490)

1,583,846(1,118,278)

497,905

465,568

46,995(26,479)

50,301(28,524)

Tools, furniture and fixtures, net

20,516

21,777

Tools, furniture and fixtures in trust
Accumulated depreciation

143,976(90,068)

156,607(95,353)

Tools, furniture and fixtures in trust, net
LandLand in trust
Construction in progress
Total property, plant and equipment
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
Total deferred assets
Total assets

5454

㻌
㻌
9,781,000
11,856,805
271,134
189,193
41,34253,907*1

111,638,476
167,095,445
80,88861,254*1

110,601,033
168,132,889
9,527

386,429,131

385,205,434

4,794,109
4,166

4,794,109
3,585

4,798,276

4,797,695

49,520379,61753,953296,996

429,137

350,950

391,656,545

390,354,080

178,453

188,176

178,453

188,176

413,974,474

414,104,657

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 24th Fiscal Period

End of 25th Fiscal Period(Dec. 31, 2013)(Jun. 30, 2014)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust*1

Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus㻌 㻌 Voluntary reserve
Reserve for reduction entry

㻌㻌
1,698,960
2,000,000
12,235,000
16,000,000
690,523
214,546605
174,150
2,446,217

㻌
1,871,405
2,000,000
6,332,000
24,000,000
589,177
184,085605
309,1122,613,999

35,460,003

37,900,385

40,500,000
121,024,000
7,553,159
12,342,195

32,500,000
126,358,000
7,624,960
12,508,179*1

181,419,354

178,991,139

216,879,357

216,891,525

㻌
192,044,238

192,044,238

73,94673,946

Total voluntary reserve

73,94673,946

Unappropriated retained earnings(undisposed losses)

4,976,931

5,094,946

Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*3

5,050,878

5,168,893

197,095,116

197,213,131

197,095,116
413,974,474*3

197,213,131
414,104,657

5555

IV. Financial Statements(2) Statements of Income and Retained Earnings(Thousands of yen)

Operating revenue㻌㻌 Rent revenue-real estate㻌Total operating expenses

Operating income
Non-operating income
㻌 Interest income㻌 Income on settlement of management association accounts
㻌 Other㻌

Total non-operating income

Non-operating expenses
㻌 Interest expenses
㻌 Borrowing expenses
㻌 Interest expenses on investment corporation bonds
㻌 Amortization of investment corporation bond issuance costs
㻌 Other㻌

25th Fiscal Period(Jul. 1, 2013 –(Jan. 1, 2014 –Dec. 31, 2013)

Jun. 30, 2014)*1

Total non-operating expenses

Ordinary income
Extraordinary income
Subsidy income
Total extraordinary income
Income before income taxes
Income taxes-current
㻌 Total income taxes㻌
13,591,659*1

13,591,659

Total operating revenue

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

24th Fiscal Period

13,734,191
㻌

*1

㻌
13,734,191

6,534,916
473,242
81,4866,600
35,16791,868*1

㻌
6,599,484
478,665
79,4876,600
35,674
108,8117,223,280

7,308,723

6,368,378

6,425,467

㻌
2,084
9,680
4,868

㻌
2,183
40,831
4,669

16,63447,684

㻌
887,736
129,716
438,203
27,3412,134

㻌
847,872
110,556
411,606
28,4091,136

1,485,133

1,399,581

4,899,879

5,073,570

54,764－54,764
4,954,643－
5,073,570

605

605

605

605

Net income

4,954,038

5,072,965

Retained earnings brought forward
Unappropriated retained earnings (undisposed losses)

22,893
4,976,931

21,981
5,094,946

56
56

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)㻌

24th Fiscal Period

25th Fiscal Period

㻌(Jul. 1, 2013 –Dec. 31, 2013)(Jan. 1, 2014 –Jun. 30, 2014)㻌Unitholders' equity
Unitholders' capital
Balance at beginning of current period㻌㻌
192,044,238

Changes of items during the period
Total changes of items during the period
Balance at end of current period
Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period
Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period㻌－－

192,044,238

192,044,238
㻌㻌
73,946

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

73,94673,946

㻌
4,998,468

㻌
4,976,931

㻌㻌

(4,975,575)
4,954,038(4,954,950)
5,072,965(21,536)

118,015

4,976,931

5,094,946

Total surplus
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period

73,946

㻌

Changes of items during the period
Dividends from surplus
Net income㻌㻌
192,044,238

㻌㻌

5,072,414

5,050,878

㻌(21,536)

㻌
118,015

5,050,878

5,168,893

Total unitholders' equity
Balance at the beginning of current period㻌
197,116,653

㻌
197,095,116

Changes of items during the period
Total changes of items during the period㻌(21,536)

㻌
118,015

197,095,116

197,213,131

Balance at end of current period
Total net assets
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period㻌
197,116,653

㻌
197,095,116

㻌
(21,536)

118,015

197,095,116

197,213,131

57
57

IV. Financial Statements(4) Statements of Cash Distributions

I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Retained earnings carried forward

Method for calculating distribution amount58
58

24th Fiscal Period(July 1, 2013 –December 31, 2013)
4,976,931,439 yen
4,954,950,000 yen(6,006 yen)

25th Fiscal Period(January 1, 2014 –June 30, 2014)
5,094,946,448 yen
5,073,750,000 yen(6,150 yen)

21,981,439 yen

21,196,448 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 4,954,950,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (825,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden 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 of Incorporation.

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 5,073,750,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (825,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden 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 of Incorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)
24th Fiscal Period

25th Fiscal Period(Jul. 1, 2013 –Dec. 31, 2013)(Jan. 1, 2014 –Jun. 30, 2014)

Net cash provided by (used in) operating activities
㻌 Income before income taxes
㻌 Depreciation and amortization

㻌4,954,643
1,869,541

㻌
5,073,570
1,834,573

27,341(2,084)28,409(2,183)

1,325,940

1,259,478(65,696)㻌㻌

Amortization of investment corporation bond issuance costs
Interest income㻌㻌Interest expenses
Decrease (increase) in operating accounts receivable㻌

Decrease (increase) in prepaid expenses

50,323(43,784)

㻌㻌

Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other(61,827)(7,844)

151,017(922)

㻌㻌

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(17,388)

134,962
167,781㻌Other, net(68,825)
13,863

㻌

Subtotal

8,039,898

8,719,673

㻌Interest income received

㻌Interest expenses paid

2,084
(1,319,821)(1,289,939)

㻌Income taxes (paid) refund

(619)

(625)

㻌

Net cash provided by (used in) operating activities

6,721,541

7,431,292

Net cash provided by (used in) investing activities㻌 Purchase of property, plant and equipment
㻌 Purchase of property, plant and equipment in trust㻌
(359,383)(6,712,299)(237,814)(353,419)

㻌Payment of tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits

㻌
㻌
㻌
㻌

48,61690,0662,183

㻌

(2,067)(51,612)

Proceeds from tenant leasehold and security deposits－(667,534)
189,216

208,409

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(248,327)
666,105(241,336)
246,435

Net cash provided by (used in) investing activities(7,132,223)(431,404)

Net cash provided by (used in) financing activities
㻌 Increase in short-term loans payable㻌 Proceeds from long-term loans payable㻌 Repayment of long-term loans payable㻌2,000,000

㻌Proceeds from issuance of investment corporation bonds

㻌Redemption payment of investment corporation bonds
Dividends paid㻌Net cash provided by (used in) financing activities

21,000,000(18,399,000)

Net changes in cash and cash equivalents
Cash and cash equivalents at beginning of current period
Cash and cash equivalents at end of current period㻌－
11,500,000(12,069,000)*1－

4,961,866－(4,973,428)(5,000,000)(4,955,077)(372,428)(5,562,210)(783,110)

1,437,676

22,420,916

21,637,805

21,637,805*1

23,075,482

59
59

IV. 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 inaccordance with 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 (ITA), the Companies Act and therelated regulations, which are different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR, which were prepared inaccordance with Japanese GAAP. In preparing the accompanying financial statements, certain reclassifications have been made to thefinancial statements issued domestically in order to present them in a format which is more 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 Method for
Property and Equipment

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 Preparing the
Financial Statements



60
60

(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 acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on 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.
Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental expenses.
Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as an acquisition 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 amounted to2,709 thousand yen and 0 yen for the fiscal periods ended December 31, 2013 and June 30, 2014, respectively.
Cash and cash equivalents in the Statements of Cash Flows include the following(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 thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet 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
National and local consumption taxes are accounted with the consumption taxes excluded.

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)
End of 24th Fiscal Period(as of December 31, 2013)End of 25th Fiscal Period(as of June 30, 2014)
120,771

Buildings (net)
Machinery and equipment (net)
Land
Total

118,902

3,424

3,253

399,183

399,183

523,378

521,339

Secured liabilities are as follows:(Thousands of yen)
End of 24th Fiscal Period(as of December 31, 2013)
Tenant leasehold and security deposits
Total

End of 25th Fiscal Period(as of June 30, 2014)
15,536

15,536

15,536

15,536*2. 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 24th Fiscal Period(as of December 31, 2013)

Credit limit
Outstanding debt at end of period
Unused commitment line at end of period

End of 25th Fiscal Period(as of June 30, 2014)
28,000,000

28,000,000－－

28,000,000

28,000,000*3. Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 24th Fiscal Period(as of December 31, 2013)

End of 25th Fiscal Period(as of June 30, 2014)
50,00050,00061
61

IV. Financial Statements(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)
24th Fiscal Period(July 1, 2013 December 31, 2013)

25th Fiscal Period(January 1, 2014 June 30, 2014)

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

9,015,753
1,469,500
1,859,271

9,196,674
1,499,750
1,866,927

Parking revenues

245,758

255,983

Advertising expenses
Antenna use fees

52,93014,61259,31818,084Other

36,24734,992

12,694,073

12,931,730

Subtotal
Other rental revenues
Incidental income

833,925

715,023

Time-based parking revenues
Cancellation charges

5,662
28,406

5,159
23,686

Income equivalent to expenses for restoration
to original condition

12,992

24,841Other miscellaneous income

16,59933,749Subtotal

897,586

802,461

Total rent revenue-real estate

13,591,659

13,734,191

Outsourcing expenses

516,552

524,536

Utilities expenses
Property and other taxes

969,327
1,879,199

860,650
1,990,821

Casualty insurance
Repairs and maintenance

27,316330,10927,210444,215

Property management fees
Management association accounts

217,389
556,013227,181562,213

1,869,009

1,834,057

169,998

128,596

6,534,916

6,599,484

7,056,743

7,134,706

B. Expenses Related to Rent Business

Depreciation
Other
Total expenses related to rent business
C. Profits(A-B)(Notes to Statements of Changes in Unitholders’ Equity)

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

62
62

24th Fiscal Period(July 1, 2013 – December 31, 2013)

25th Fiscal Period(January 1, 2014 – June 30, 2014)

5,000,000 units

5,000,000 units

825,000 units

825,000 units

Japan Prime Realty Investment Corporation(Notes to Statements of Cash Flows)*1. Relationship between the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows and the Amounts of theCorresponding Accounts on the Balance Sheets(Thousands of yen)

24th Fiscal Period(July 1, 2013 – December 31, 2013)

25th Fiscal Period(January 1, 2014 – June 30, 2014)

Cash and deposits

9,781,000

11,557,849

Cash and deposits in trust

11,856,805

11,517,632

Cash and cash equivalents

21,637,805

23,075,482(Leases)
Future lease revenues under non-cancelable operating leases(Thousands of yen)

24th Fiscal Period(July 1, 2013 – December 31, 2013)

25th Fiscal Period(January 1, 2014 – June 30, 2014)

Due within one year

5,733,905

6,141,257

Due after one year

18,977,097

19,871,937

Total

24,711,002

26,013,195

(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 ofshort-term funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to management 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 failure of the financial institutions holding the deposits and other credit risks, but 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 liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing acommitment line agreement with the main lending financial institutions, and also having statements of cash receipts anddisbursements prepared by the financial division.
(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values based on reasonablecalculations when there is no market price. Certain assumptions, etc. are used in calculating those values and there may be cases
where the values will vary when different assumptions, etc. are used.

63
63

IV. Financial Statements

2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of December 31, 2013 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized 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

9,781,000

9,781,000－(2)

Cash and deposits in trust

11,856,805

11,856,805－(3)

Short-term loans payable(2,000,000)(2,000,000)－(4)

Current portion of long-term loans payable(12,235,000)(12,370,436)

135,436(5)

Current portion of investment corporation bonds(16,000,000)(16,204,932)

204,932(6)

Investment corporation bonds(40,500,000)(41,537,700)

1,037,700(7)

Long-term loans payable(121,024,000)(122,963,250)

1,939,250

The following are the carrying values and estimated fair values as of June 30, 2014 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized 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

11,557,849

11,557,849－(2)

Cash and deposits in trust

11,517,632

11,517,632－(3)

Short-term loans payable(2,000,000)(2,000,000)－(4)

Current portion of long-term loans payable(6,332,000)(6,409,432)

77,432(5)

Current portion of investment corporation bonds(24,000,000)(24,231,152)

231,152(6)

Investment corporation bonds(32,500,000)(33,577,888)

1,077,888(7)

Long-term loans payable(126,358,000)(128,680,083)

2,322,083(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated 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 estimated fair value is approximately the same as the book value and is thusstated at that book 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 book value and is thus stated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as
it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans
payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being
applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated 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 estimated 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 calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.



64
64

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 24th Fiscal Period(as of December 31, 2013)

Category

End of 25th Fiscal Period(as of June 30, 2014)

Tenant leasehold and security deposits

7,553,159

7,624,960

Tenant leasehold and security deposits in trust

12,342,195

12,508,179(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 24th fiscal period (December 31, 2013)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

9,781,000

－

－

－

－

－

Cash and deposits in trust

11,856,805

－

－

－

－

－

Scheduled redemption of monetary claims to be due after the account closing date of the 25th fiscal period (June 30, 2014)

Due after Two
Years throughThree Years

Due after Five
Years(Thousands of yen)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

11,557,849

－

－

－

－

－

Cash and deposits in trust

11,517,632

－

－

－

－

－

Due after Five
Years

(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after theaccount closing date of the 24th fiscal period (December 31, 2013)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Short-term loans payable

2,000,000

－

－

－

－

－

Investment corporation bonds

16,000,000

13,000,000

7,000,000

5,000,000

7,000,000

8,500,000

Long-term loans payable

12,235,000

19,732,000

17,332,000

31,632,000

16,408,000

35,920,000Due after Three Due after FourYears through Years throughFour Years
Five 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 after theaccount closing date of the 25th fiscal period (June 30, 2014)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Short-term loans payable

2,000,000

－

－

－

－

－

Investment corporation bonds

24,000,000－

7,000,000

10,000,000

2,000,000

13,500,000

Long-term loans payable

6,332,000

26,732,000

23,732,000

20,374,000

17,200,000

38,320,000Due after Three Due after FourYears through Years throughFour Years
Five Years

Due after Five
Years



(Securities)
24th fiscal period (as of December 31, 2013)
Not applicable
25th fiscal period (as of June 30, 2014)
Not applicable(Derivative Transactions)24th fiscal period (as of December 31, 2013)
Not applicable as JPR conducted no derivative transactions
25th fiscal period (as of June 30, 2014)
Not applicable as JPR conducted no derivative transactions

65
65

IV. Financial Statements(Retirement Benefits)
24th fiscal period (as of December 31, 2013)
Not applicable as JPR does not have any retirement benefit system
25th fiscal period (as of June 30, 2014)
Not applicable as JPR does not have any retirement benefit system(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

24th Fiscal Period(July 1, 2013 – December 31, 2013)

Effective statutory tax rate

36.59%

36.59%



(36.59%)(36.59%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

(Adjustment)
Deductible cash distributions

(Equity Method Income and Retained Earnings)
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable as JPR does not have any affiliated companies
25th fiscal period (January 1, 2014 – June 30, 2014)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
25th fiscal period (January 1, 2014 – June 30, 2014)
Not applicable
2. Subsidiaries
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
25th fiscal period (January 1, 2014 – June 30, 2014)
Not applicable
3. Sister Companies
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
25th fiscal period (January 1, 2014 – June 30, 2014)
Not applicable
4. Directors and Major Individual Unitholders
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
25th fiscal period (January 1, 2014 – June 30, 2014)
Not applicable(Asset Retirement Obligations)24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable

66
66

25th Fiscal Period(January 1, 2014 – June 30, 2014)

Japan Prime Realty Investment Corporation

25th fiscal period (January 1, 2014 – June 30, 2014)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.
[Related Information]
24th fiscal period (July 1, 2013 – December 31, 2013)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.

3. Information about Major Customers(Thousands of yen)
Customer Name
Y.K. Tokyo Prime Stage

Operating Revenue

Related Segment
1,469,500

Property rental business
25th fiscal period (January 1, 2014 – June 30, 2014)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets 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 revenues on theStatements of Income and Retained Earnings.

(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities) and retail properties for leasing in Tokyo and other regions. The
following is the carrying value on the balance sheets, amount of increase (decrease) during the period and estimated fair value ofthese 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

24th Fiscal Period
25th Fiscal Period(July 1, 2013 – December 31, 2013) (January 1, 2014 – June 30, 2014)


Estimated Fair Value at End of Period

386,086,796

391,225,225

5,138,428(1,223,761)

391,225,225
376,995,000

390,001,463
379,917,000(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.

67
67

IV. Financial Statements(Note 2) Of the amount of increase (decrease) during the periods for investment and rental properties, the amount of increase for the 24th fiscal period is primarily
attributable to acquisition of Science Plaza-Yonbancho Plaza (2,700,337 thousand yen) and Shibadaimon Center Building (3,449,233 thousand yen), and theamount of decrease for the 25th fiscal period is primarily attributable to depreciation (1,834,057 thousand yen).
(Note 3) The estimated 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 24th and 25th fiscal periods for investment and rental properties are as presented in the “Notes toStatements of Income and Retained Earnings.”(Per Unit Information)


24th Fiscal Period(July 1, 2013 – December 31, 2013)

Total net assets per unit
Net income per unit

25th Fiscal Period(January 1, 2014 – June 30, 2014)

238,903 yen

239,046 yen

6,004 yen6, 149 yen(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 warrants and convertible bonds are outstanding.
(Note 2) Net income per unit was calculated based on the following data:

24th Fiscal Period(July 1, 2013 – December 31, 2013)

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

4,954,038

25th Fiscal Period(January 1, 2014 – June 30, 2014)
5,072,965－－

4,954,038

5,072,965

825,000 units

825,000 units(Subsequent Events)
Issuance of unsecured investment corporation bonds
On July 11, 2014, JPR made the following decision to issue investment corporation bonds based on the comprehensive resolution
adopted at the Board of Directors’ meeting held on April 24, 2014. Payment for the investment corporation bonds was completed
on July 22, 2014.
Name of the bonds

Japan Prime Realty Investment Corporation 20th Series of Unsecured Investment Corporation Bonds(with special pari passu conditions among specified investment corporation bonds)

Total issue amount2 billion yen

Subscription period

July 11, 2014

Interest rate

0.303% per annum

Payment dateJuly 22, 2014

Unsecured / unguaranteed

Purchase price

100 yen per 100 yen of the investment
corporation bonds

Collateral
Redemption method andredemption date

The total amount of the bonds will be redeemed on July 22, 2019. The bonds may be repurchased and cancelled at any
time on and after the day following the payment date, unless otherwise determined by the book-entry transfer agent.

Use of funds

Redemption of investment corporation bonds

Name of the bonds

Japan Prime Realty Investment Corporation 21st Series of Unsecured Investment Corporation Bonds(with special pari passu conditions among specified investment corporation bonds)

Total issue amount

4 billion yen

Subscription period

July 11, 2014

Interest rate

1.278% per annum

Payment dateJuly 22, 2014

Unsecured / unguaranteed

Purchase price

100 yen per 100 yen of the investment
corporation bonds

Collateral
Redemption method andredemption date

The total amount of the bonds will be redeemed on July 22, 2026. The bonds may be repurchased and cancelled at any
time on and after the day following the payment date, unless otherwise determined by the book-entry transfer agent.

Use of funds

Redemption of investment corporation bonds

68
68

Japan Prime Realty Investment Corporation(7) Detailed Schedules
1) Schedule of securities
Not applicable2) Status of contract amounts, etc. and estimated 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, furnitureand fixtures
Land
Construction inprogress
Subtotal

Accumulated Depreciation
Balance as ofDepreciation Net Balance as of
Or Accumulated
June 30, 2014
June 30, 2014
during theRemarks
Amortization(thousands of(thousands ofPeriod(thousands of
yen)
yen)
(thousands of
yen)
yen)
－
－
－
－
－






Increase
Decrease
Balance as ofduring theduring theJanuary. 1, 2014
PeriodPeriod(thousands of(thousands of (thousands of
yen)
yen)
yen)
－

－


















57,160,036
44,971

334,681394

131,481－

57,363,236
45,366

10,567,703
12,774790,234
1,305

46,795,533
32,591

725,203

831

689

725,345

333,349

19,273391,995

46,9953,305－

50,301

28,524

2,044

21,777



111,638,476－

1,037,443

110,601,033－－

110,601,033



80,8881,880

73,241

9,527

－

－

9,527



169,696,573

341,093

1,242,855

168,794,810

10,942,351

812,858

157,852,458

82,586,390
116,410450,410
4,123－－

83,036,800
120,534

24,402,931
61,138972,801
3,950

58,633,868
59,395

1,576,395

7,450

－

1,583,846

1,118,278

39,098465,568

95,353

5,284

61,254
168,132,889(Beneficiary interests
in trust)
Buildings in trust
Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures intrust
Land in trust

143,976

12,631－

156,607

167,095,445

1,037,443－

168,132,889－－

Subtotal

251,518,618

1,512,058－

253,030,677

25,677,701

1,021,134

227,352,975 

Total

421,215,191

1,853,151

1,242,855

421,825,488

36,620,053

1,833,992

385,205,434

Intangible Assets
Leasehold rights
Other

4,794,109
7,917

－
－

－
－

4,794,109
7,917

－

－

4,331

580

4,794,109
3,585

Total

4,802,027－－

4,802,027

4,331

580

4,797,695

(Note 1) The “Increase during the Period” is due to construction works, etc. For buildings in trust, machinery and equipment in trust and land in trust, the increase
includes the transfer from real estate to beneficiary interests in trust as a result of executing an additional trust agreement.
(Note 2) The “Decrease during the Period” in construction in progress is due to the transfer to relevant accounts as a result of construction completion. For buildings,
machinery and equipment and land, the decrease is due to the transfer from real estate to beneficiary interests in trust as a result of executing an additional trust
agreement.

4) Schedule of other specified assets
Not applicable69
69

IV. Financial Statements

5) Schedule of investment corporation bonds
Decreaseduring the
Period(thousands ofyen)

Balance as ofJune 30, 2014
(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJan. 1, 2014
(thousands ofyen)

Third Series ofInvestment Corporation
Bonds(Note 1)Feb. 12, 2004

5,000,000

5,000,000－

2.32

Feb. 12, 2014

Sixth Series ofInvestment Corporation
Bonds(Note 2)

Nov. 4, 2004

5,000,000－

5,000,000

2.00

Nov. 4, 2014

Seventh Series ofInvestment Corporation
Bonds(Note 3)

Dec. 14, 2006

4,500,000－

4,500,000

2.90

Dec. 14, 2026

Ninth Series ofInvestment
Corporation Bonds(Note 3)

Jul. 23, 2007

6,000,000－

6,000,000

2.10

Jul. 23, 2014

Eleventh Series ofInvestment Corporation
Bonds(Note 3)Mar. 12, 2010

6,000,000－

6,000,000

1.68

Mar. 12, 2015

Twelfth Series ofInvestment Corporation
Bonds(Note 3)

May 21, 2010

7,000,000－

7,000,000

1.27

May 21, 2015

Thirteenth Series ofInvestment Corporation
Bonds(Note 3)Oct. 25, 2011

7,000,000－

7,000,000

0.95

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds(Note 3)Oct. 25, 2011

2,000,000－

2,000,000

1.34

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds(Note 3)

Nov. 22, 2012

5,000,000－

5,000,000

0.68

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds(Note 3)

Nov. 22, 2012

2,000,000－

2,000,000

1.03

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds(Note 3)

May 31, 2013

5,000,000－

5,000,000

0.65

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds(Note 3)

May 31, 2013

2,000,000－

2,000,000

1.46

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds(Note 3)Feb. 5, 2014－－

5,000,000

1.11

Feb. 5, 2024

56,500,000

5,000,000

56,500,000

Use

Remarks

Purchase ofproperties andrepayment of loans

Repayment of loans

Purchase ofproperties

Redemption of Unsecured
investment
corporation
bonds andrepayment of loans

Repayment of loans

Total

Redemption of
investment
corporation bonds(Note 1) These investment corporation bonds are equipped with the same rank rider limited among investment corporation bonds, and with limitations on private
placement among a small number of investors and on resale among qualified institutional investors.
(Note 2) These investment corporation bonds are equipped with the same rank rider limited among investment corporation bonds and limitations on resale among
qualified institutional investors.
(Note 3) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.
(Note 4) Amounts of investment corporation bonds to be redeemed within five years after the date of the balance sheet 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

70
70

24,000,000－

7,000,000

10,000,000

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

2,000,000

Japan Prime Realty Investment Corporation

6) Schedule of Loans Payable
Increase
Decrease
Balance asduringduringBalance as of Averageof Jan. 1,
Current
Current June 30, 2014 Interest Rate2014
PeriodPeriod(thousands of (Note 2)(thousands(thousands (thousands ofyen)(Note 3)of yen)of yen)yen)

Repayment
Date

Use

Remarks

The Norinchukin Bank

1,000,000－－

1,000,000

0.397%

Dec. 5, 2014

(Note 4)

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.466%

Sep. 24, 2014

Unsecured/
Unguaranteed/
Non-SubordinatedTotal

2,000,000－－

2,000,000

LenderIncrease
Decrease
Balance asduringduringof Jan. 1,
Current
Current
2014
Period(thousands Periodof yen) (thousands (thousandsof yen)of yen)Use

Remarks

LenderShort-term loans payable

Balance as

Averageof June 30,

Interest

2014

Rate

(thousands(Note 2)of yen)(Note 3)

Repayment
DateLong-Term Loans Payable (Note 1)
Mizuho Bank, Ltd.

5,100,000－

5,100,000－

2.449%(Note 5)

Mizuho Bank, Ltd.

5,000,000－－

5,000,000

1.414%

Feb. 4, 2016

Mizuho Bank, Ltd.

7,000,000－－

7,000,000

1.093%

Mar. 30, 2017

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

1.027%

Dec. 5, 2019

Mizuho Bank, Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

Mizuho Bank, Ltd.

－

5,000,000－

5,000,000

1.178%

Jun. 27, 2023

Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,253,000－

4,253,000－

2.390%(Note 6)

Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000,000－－

5,000,000

1.198%

Mar. 25, 2016

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000－－

1,000,000

1.178%

Aug. 8, 2019

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000－－

1,000,000

0.948%

Aug. 8, 2017

Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000－－

3,000,000

0.919%

Sep. 5, 2017

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000－－

1,000,000

1.027%

Dec. 5, 2019

Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

Bank of Tokyo-Mitsubishi UFJ, Ltd.

－

4,000,000－

4,000,000

0.889%

Jun. 25, 2021

Sumitomo Mitsui Banking
Corporation

2,550,000－

2,550,000－

2.440%(Note 7)

Sumitomo Mitsui Banking
Corporation

6,400,000－－

6,400,000

1.093%

Unsecured/Mar. 30, 2017 (Note 4)

Sumitomo Mitsui Banking
Corporation

1,000,000－－

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking
Corporation

3,000,000－－

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking
Corporation－

2,500,000－

2,500,000

1.033%

Jun. 27, 2022

Aozora Bank, Ltd.

900,000－－

900,000

0.994%

Jul. 3, 2017

Aozora Bank, Ltd.

2,000,000－－

2,000,000

1.178%

Aug. 8, 2019

Aozora Bank, Ltd.

2,000,000－－

2,000,000

0.985%

Aug. 25, 2017

Aozora Bank, Ltd.

2,000,000－－

2,000,000

1.146%

Aug. 30, 2018

Aozora Bank, Ltd.

1,000,000－－

1,000,000

1.069%

Sep. 24, 2020

Shinsei Bank, Ltd.

5,000,000－－

5,000,000

1.397%

Apr. 5, 2019

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.076%

Sep. 24, 2020

Mizuho Trust & Banking Co., Ltd.

4,000,000－－

4,000,000

1.093%

Mar. 30, 2017

Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

1.076%

Feb. 4, 2020

Mitsubishi UFJ Trust and Banking
Corporation

5,000,000－－

5,000,000

1.184%

Aug. 29, 2017

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000－－

1,000,000

0.924%

Aug. 31, 2015

Unguaranteed/
Non-Subordinated71
71

IV. Financial Statements

LenderMitsubishi UFJ Trust and Banking
Corporation

Increase
Decrease
Balance as ofduringduringBalance as ofJan. 1, 2014
Current
Current June 30, 2014
(thousands ofPeriodPeriod(thousands ofyen)(thousands of (thousands of
yen)
yen)
yen)

Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Jun. 26, 2015

1,000,000－－

1,000,000

0.843%Development Bank of Japan Inc.

3,100,000－

100,000

3,000,000

3.190%(Note 8)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

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

1.170%

Jul. 7, 2016

The Bank of Fukuoka, Ltd.

2,000,000－

0.902%

Oct. 9, 2015

The Bank of Fukuoka, Ltd.

1,000,000－－－

2,000,000
1,000,000

0.911%

Sep. 24, 2019

Sompo Japan Insurance Inc. (Note 9)2,000,000－－

2,000,000

0.981%

Oct. 11, 2016

Sompo Japan Insurance Inc. (Note 9)2,000,000－－

2,000,000

0.874%

Dec. 25, 2015

Meiji Yasuda Life Insurance Company

3,736,000－

66,0003,670,000

1.800%(Note 10)ORIX Bank Corporation

1,000,000－－

1,000,000

0.786%

Feb. 5, 2018

ORIX Bank Corporation

2,000,000－－

2,000,000

0.762%

May 27, 2019

Shinkin Central Bank

3,000,000－－

3,000,000

0.689%

Dec. 5, 2018

The Shinkumi Federation Bank

3,000,000－－

3,000,000

0.786%

Feb. 5, 2018

Taiyo Life Insurance Company

1,000,000－－

1,000,000

1.275%

Sep. 24, 2015

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.949%

Jun. 4, 2018

Taiyo Life Insurance Company

1,000,000－－

1,000,000

1.011%

Dec. 25, 2020

The Chugoku Bank, Ltd.

2,000,000－－

2,000,000

0.902%

Oct. 9, 2015

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.758%

Sep. 25, 2018

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

1.149%

May 27, 2016

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

2.257%

Jun. 4, 2015

Zenkyoren (National Mutual Insurance
Federation of Agricultural
Cooperatives)

2,000,000－－

2,000,000

1.725%

Mar. 26, 2015

Daido Life Insurance Company

1,000,000－－

1,000,000

1.666%

Feb. 5, 2015

Daido Life Insurance Company

1,000,000－－

1,000,000

0.710%

Dec. 27, 2018

Resona Bank, Limited

2,000,000－－

2,000,000

1.093%

Mar. 30, 2017

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.902%

Oct. 9, 2015

Tokio Marine & Nichido Fire
Insurance Co., Ltd.

1,000,000－－

1,000,000

0.710%

Dec. 27, 2018

The Tokyo Tomin Bank, Limited (Note11)

1,000,000－－

1,000,000

0.654%

Sep. 30, 2015

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.902%

Oct. 9, 2015

The Bank of Yokohama, Ltd. (Note 11)

1,000,000－－

1,000,000

0.654%

Sep. 30, 2015

The Minato Bank, Ltd. (Note 11)

800,000－－

800,000

0.654%

Sep. 30, 2015

The Yamaguchi Bank, Ltd. (Note 11)

500,000－－

500,000

0.654%

Sep. 30, 2015

The Chiba Kogyo Bank, Ltd. (Note 11)

100,000－
11,500,000－
12,069,000

100,000

0.654%

Sep. 30, 2015

Total
(Note 1)

6,332,000

26,732,000

Remarks

Unsecured/(Note 4) Unguaranteed/
Non-Subordinated132,690,000

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheet 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(Note 2)

133,259,000

Use

23,732,000

20,374,000

Due after Four Years
through Five Years(thousands of yen)
17,200,000

The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 3) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable, except those that fall under the category of Note
11.
(Note 4) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.
(Note 5) The loans payable were subject to repayment of 100 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 5,100 million
yen was made on maturity date June 27, 2014.
(Note 6) The loans payable were subject to repayment of 83 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 4,253 million
yen was made on maturity date June 27, 2014.
(Note 7) The loans payable were subject to repayment of 50 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 2,550 million
yen was made on maturity date June 27, 2014.
(Note 8) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million
yen will be made on maturity date June 27, 2019.
(Note 9) Sompo Japan Insurance Inc. was renamed Sompo Japan Nipponkoa Insurance Inc. as of September 1, 2014 in accordance with the merger with NIPPONKOA
Insurance Company, Limited.
(Note 10) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter every 6 months. In addition, repayment of 3,208 million yen will
be made on maturity date June 21, 2018.
(Note 11) The loans are with floating interest rates.

72
72

Japan Prime Realty Investment Corporation(8) Report of Independent Auditors

7373

IV. Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
24th Fiscal Period(July 1, 2013 – December 31, 2013) (Reference)

25th Fiscal Period(January 1, 2014 – June 30, 2014)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
24th fiscal period (July 1, 2013 – December 31, 2013)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

38,312－

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

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

25th fiscal period (January 1, 2014 – June 30, 2014)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

(Note) Transaction terms are determined based on prevailing market conditions.

74

74

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

37,687

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000624

V. Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of June 30, 2014)
Trading Market capitalization: ¥299.8 billion
Volume¥564,000 (May 7, 2007)(units) High:¥130,300 (October 28, 2008)
32,000 Low:
28,000

Unit price at end of
25th Fiscal Period:

Unit

Unit price (yen) Price

Trading volume (units)(yen)
580,000¥363,500 (June 30, 2014)

520,000

Offer price at additional offering: ¥449,820

24,000460,000

20,000400,000

16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

Offer price at additional offering: ¥237,160
220,000

8,000 Offer price at IPO: ¥200,000
4,000

Offer price at additional offering: ¥194,610
160,000
Offer price at additional offering: ¥168,1010

100,000

Jun. 14 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 3 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 6 Jul. 1 Aug. 6
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2002
2003
1/0/1900
7/25/2002
9/4/2002
10/18/2002
11/29/2002
1/17/2003
2/28/2003
4/11/2003
5/26/2003
7/4/2003
8/15/2003
9/29/2003
11/11/2003
12/24/2003
2/9/2004
3/22/2004
5/6/2004
6/16/2004
7/28/2004
9/7/2004
10/21/2004
12/3/2004
1/19/2005
3/2/2005
4/13/2005
5/30/2005
7/8/2005
8/19/2005
10/3/2005
11/15/2005
12/28/2005
2/10/2006
3/24/2006
5/9/2006
6/19/2006
7/31/2006
9/8/2006
10/23/2006
12/5/2006
1/19/2007
3/2/2007
4/13/2007
5/29/2007
7/9/2007
8/20/2007
10/2/2007
11/13/2007
12/26/2007
2/13/2008
3/26/2008
5/9/2008
6/19/2008
7/31/2008
9/10/2008
10/24/2008
12/8/2008
1/23/2009
3/6/2009
4/17/2009
6/3/2009
7/14/2009
8/25/2009
10/8/200911/20/2009
1/6/2010
2/18/2010
4/1/2010
5/18/2010
6/28/2010
8/9/2010
9/17/2010
11/2/201012/15/2010
1/31/2011
3/14/2011
4/25/2011
6/9/2011
7/21/2011
8/31/201110/14/2011
11/28/2011
1/12/2012
2/22/2012
4/4/2012
5/18/2012
6/28/2012
8/9/2012
9/20/2012
11/1/201212/13/2012
1/31/2013
3/14/2013
4/25/2013
6/10/2013
7/22/2013
8/30/201310/15/2013
11/26/2013
1/14/2014(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of June 30, 2014)
Other domestic
corporations

Foreign investors

207

35000

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.14%)

12,42530000(21.91%)

Number ofinvestment units
by investor type

Other domestic
corporations
20000

825,000
units

83,927 units

15000

11,748(94.55%)(4.81%)

180,767 units

25000

Individuals

39,736 units

Foreign investors(2.63%)(1.66%)

142

Individuals

328(10.17%)

10000
5000

Financial institutions(including securities firms)

520,570 units(63.09%)0(Note) The composition ratio is rounded 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Notice Concerning Withholding Tax Rate on Dividends of Listed Stocks, Etc.
Please be informed that the concessionary tax rate imposed on dividends and distributions of listed stocks, etc.
was abolished as of December 31, 2013, and the ordinary tax rate is applicable for dividends and distributions oflisted stocks, etc. to be paid on or after January 1, 2014. For reference, the special income tax for reconstruction isapplied for dividends and distributions for the 25-year period from January 1, 2013 through December 31, 2037 at
the rate of 2.1% on the applicable income tax liability.
The withholding tax rates on dividends and distributions of listed stocks, etc. to be paid on or after January 1, 2014 are as follows.

Income tax
Special income tax for reconstruction
Resident tax
Total

From January 1, 2014
to December 31, 2037

From January 1, 2037
and thereafter

15%

15%

0.315%—

5%

5%

20.315%20%⃝ Resident tax is not levied on corporations.

⃝ This notice is meant to provide general information regarding taxation on dividends and distributions of listed stocks, etc., and there may be cases in which the content of this notice is notapplicable. For details, please inquire at the nearest tax office, with a tax accountant or other specialist.
⃝ This notice has been prepared based on the information available as of July 2014.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

More than once every two years

Base Date of General Meeting of Unitholders The date designated pursuant of JPR’s Articles of Incorporation
Cash Distribution Payment Eligibility
Transfer Agent

Unitholders of record as of June 30 and December 31 of each year
Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo
Main Branch, Stock Transfer Agency Division

Location of Records

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

Mailing Address

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

Contact by Phone

0120-288-324

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 not utilized 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 themain or 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 advise that cash distributions be received as soon as possible.