37th
Security code 8955

Japan Prime Realty Investment Corporation
Presentation Material For the 37th Fiscal Period
Ended June 2020
（Asset Manager）
Tokyo Realty Investment Management, Inc.

Table of Contents

1. Summary of Financial Results

3. Financial Results and Operating Forecasts

Financial Results for the 37th Fiscal Period andOperating forecasts

3

Overview of Financial Results for the 37th Fiscal Period (Jun. ‘20) (periodon-period comparison)

22

Summary of Operating Results

4

Impact of Voluntary Restraint due to COVID-19

5
6

Overview of Financial Results for the 37th Fiscal Period (Jun. ‘20)
(compared with forecast)

24

Forecasts of Financial Results for the 38th Fiscal Period (Dec. ‘20)
(compared with 37th period)

25

Forecasts of Financial Results for the 39th Fiscal Period (Jun. ‘21)
(compared with forecast for 38th period)

26

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

27

Change in Rental Business Profit

28

Effects of COVID-19 and Growth Strategies
Fluctuation in Distribution per Unit
Change in Major Items
Management Policy
Medium-term Target

7
8
9
10

2. Operational Status and Growth Strategy

4. Appendix

2-1. Internal Strategy
Occupancy Status
Status of Rent

Status of Retail Properties

Fund Summary

12
13
14

2-2. External Strategy

Portfolio

30 Governance
31 Unitholders

Diversification of Tenants

32 Investment Unit Price and DPU

Move-Ins/Move-Outsof Tenants

33 Asset Manager

YieldsProperties to be Acquired in the June 2020 Period

1516Main Sponsor Pipeline

17

Appraisal Value

Results of Acquisitions

2-3. Financial Strategy
Financial Status
Diverse Status of Lenders

18
19

2-4. Sustainability
Highlights

20

Occupancy Rate and Rents
Appraisal Value by
Property44
45
34
For-Sale Property Market
46
35
Results of Survey on Working from Home 47
36
Overview of JPR
48
37 Portfolio Map
49
Office Property Leasing Market

Environment

38 Portfolio List
39 Introduction to the JPR Website

Society

40 Glossary

ESG of JPR

41
42
43

Disclaimer

50
58
59
60

1

JAPAN PRIME REALTY INVESTMENT CORPORATION

1. Summary of Financial Results

2

1. Summary of Financial
Results（million yen）

Operating revenue

Financial Results for the 37th Fiscal Period and Operating
forecasts

December 2019
PeriodResult16,005June 2020
PeriodResult16,363

Period-on-period
comparison

Compared with
forecast

Increase/
Decrease

Rate of
ChangeIncrease/
Decrease

Rate of
Change

+357

+2.2%

-76

-0.5%

Rental income-realestate

8,467

8,927

+460

+5.4%

+25

+0.3%

Operating income

7,684

8,013

+328

+4.3%

+23

+0.3%

Ordinary income

6,915

7,277

+362

+5.2%

-9

-0.1%

Net income

6,914

7,276

+362

+5.2%

-9

-0.1%

Distribution per unit
（yen）

7,493

7,595

+102

+1.4%

+5

+0.1%

December2020 Period
Forecast

June
2021 Period
Forecast

16,695

16,475+2.0%(period-on-period)-1.3%(period-on-period)

9,045

8,806

+1.3%
(period-on-period)-2.6%(period-on-period)

8,100

7,866

+1.1%
(period-on-period)-2.9%(period-on-period)

7,399

7,188

+1.7%
(period-on-period)-2.8%(period-on-period)

7,398

7,187

+1.7%
(period-on-period)-2.8%(period-on-period)

7,720

7,500

+1.6%
(period-on-period)-2.8%(period-on-period)3

1.

Summary of Financial
Results

Summary of Operating Results

Internal Growth

Occupancy rate
(period average)

Monthly upwardrevision（net）

External GrowthJun. ‘20 period

Change(37th)

Increase or decrease

99.6%+0.1%pt+32.8 million +9.1 million
yen

Rate of upwardrevision（net）+4.3%

Gap in rent

-4.8%

yen

End of Jun. ’20(37th)Asset
size

Financial Strategy

Increase or decrease

457.1 billion yen+17.62 billion

65+2

Numberof
Properties

yen-0.8%pt
Properties to be acquired in Jun. ’20 (37th) period

ChangeIncrease or
decrease

LTV

39.5% -1.3%pt

Average debt
cost

0.78% -0.03%pt

Average maturity

4.6 years

Ratio of long-term,
fixed interest rate
debts

-

years

100% +0.5%pt

Business environment perception/ Outlook• Lowered LTV to 39.5% through capital increase by
way of public offering.
• Financing environment does not appear to havechanged dramatically due to COVID-19.
• Continue to conduct operations conservatively using
long-term loans with fixed interest rates, in principle.

+2.1%pt

Business environment perception/ Outlook• The economy experienced a sharp downturn primarily
due to the effects of COVID-19.
• Following the declaration of a state of emergency,
many commercial tenants voluntarily suspended
operations or shortened their operating hours. As aresult, JPR also temporarily reduced rents or offeredrent payment holidays. Rents for office tenants were
not reduced.
• Properties owned by JPR maintained high levels ofoccupancy and the upward revision of rents also
progressed well.
• The temporary reduction of rents in response to
COVID-19 is expected to end in the Dec. ‘20 period.
• Delays in leasing activities and slowdown in the
upward revision of rents are expected for the time
being.
• Aim to keep raising rents by strengthening relations
with tenants and keep costs at a reasonable level.

End of Jun. ’20(37th)

Change

ESG
Sencity Bldg.

Minami Semba Bldg.

Acquisition price13.87 billion yen

Acquisition price3.75 billion yen

Business environment perception/ Outlook• On the office investment market, it is still hard toacquire properties. There is little information about
prime properties for sale and no sign of any fall in
prices.
• Make selective investments focusing on sponsors’
pipelines.
• Hotels and commercial property acquisitions will be
postponed for the time being.

GRESB

5 Star Public Disclosure Level A

Reduction in GHG intensity(based on tCO2/㎡)
2.8% (down 4.0％pt in previous period)
Percentage of properties with environmental certification
60.1% (up 5.7%pt, period-on-period)

Business environment perception/ Outlook• The importance of resilience, health and comfort haveincreased through the experience of COVID-19.
• Focus on acquiring further environmental certificationand strengthening measures to address climatechange.

4

1.

Summary of Financial
Results

Impact of Voluntary Restraint Due to COVID-19

The impact on office tenants, which account for the majority of tenants, was limited
but commercial tenants were impacted to some extent.
Rent reductions, payment holidays and contract cancellations due to the effects of COVID-19
Action taken
・ In response to calls for business restraint following the declaration of a state of
emergency, primarily commercial tenants voluntary suspended operations or
shortened their operating hours.

・ Impact on office tenants was slight.
・ Among commercial tenants, many bars and restaurants and some service outlets
suffered sharp decline in sales and appropriate measures such as rent reduction
were promptly taken based on an assessment of individual circumstances. Thisaction will strengthen relationships with tenants in the future and prevent themfrom moving out.
・ Impact of temporary rent reduction on rental revenue in Jun. ’20 period: -94
million yen⇒ Ratio of operating revenue for Jun. ’20 period: 0.6%
・ The recovery of bars and restaurants is currently slower than retail whichappears to be recovering comparatively well, however, bars and restaurants
account for a 2.5％ share of the portfolio.

Other effects
・ Delays in leasing activities due to cancellation of viewings, review ofrelocation plans, etc.
・ Lengthier rent revision negotiations and smaller upward rent revisions due
to deterioration in corporate earnings

Commercial Tenants

73.8%

26.2%

Number of tenants/
Ratio of total number of tenants (851)-

97 / 11.4%

Jun. ’20
period--94 million yen / 0.6%

Dec. ’20
period--49 million yen / 0.3%

Rent component ratio

・ Provided business continuity support to tenants which suffered decline in sales orwere otherwise affected, based upon comprehensive consideration of requests
from the relevant authorities and impact on future performance.

Status as of the end of Jun. 30, 2020

Office Tenants

Temporaryrent
reduction

Impact on rent revenue/
Ratio of operating revenue
in each period

Payment
holiday

Number of tenants/
Ratio of total number of tenants (851)

2 / 0.2%

28 / 3.3%

Contract
cancellation

Number of tenants /Ratio of total number of tenants (851)

7 / 0.8%

2 / 0.2%

Portfolio composition
Bars & restaurants
2.5%
Services
Other
4.5%
1.2%
Retail18.1%

1. Tenant classifications are determined by TRIM based on actual use, and commercial tenants include tenants of office buildings.

Other
17.0%

Services
17.5%

Services
4.6%

Office73.8%
2. “Portfolio composition” is based on ratios of total rent.

Temporary rent reductions by tenant

Total rent
reductions
144 million yen

Bars &
restaurants
20.7%

Retail
57.6%

Other
5.2%

Number oftenants
97
Retail26.8%

Bars &
restaurants
50.5%

5

1.

Summary of Financial
Results

Effects of COVID-19 and Growth Strategies

Status and Outlook of Office Market

After COVID-19
outbreakBefore COVID-19
outbreakCorporate
stanceDemandside

Supplyside

MarketStrong demand against backdrop ofcompetition for human resources andworkstyle reform

Implementation of initiatives such as freeaddress facilities and telework (mobile
Type of use work, satellite offices, work from home) by
forward-thinking enterprises against
backdrop of workstyle reform

Officesupply incentralTokyo
Vacancyrate・ Continued wait-and-see attitude amid
uncertainty over the future

・ Large supply from 2018 to 2020
・ Contracts concluded for most properties
supplied in 2020
Extremely tight market with hardly any
vacancies

State of emergency
Mar. 2020 - May 2020
・ Temporary shutdown of all activity
except working from home as people
refrained from going out→ Slowdown of leasing activities andpostponement of relocation and office
expansion→ Rapid adoption of working from home
to prevent the spread of COVID-19

New rents, Level of rents had been rising gradually fora long timeetc.

・ Reduction of demand in absolute terms despite
certain level of demand for office expansion
among strongly performing enterprises and for
BCP in response to COVID-19
・ Reassessment of importance of office work
・ Development of IT environment to takeadvantage of telework→ Stance of expecting employees to work at
office, in principle, but allowing flexible ways
of working is expected to become the norm
Limited supply from 2021 to 2022

Steady supply-demand balance despite slightrise in vacancy rate
・ Peaking of rent level
・ Increase in downtime→ Greater selectivity based on location/spec is
expected

JPR’s growth strategies
・ Maintain internal growth
Focus on continuing to raise office rents. Although pace of increase will slow, upward revision is possible
due to large rent gap.
Bar & restaurant type commercial tenants will be dealt with flexibly depending on future circumstances.

・ Keep costs at reasonable level
Make repair and value enhancement investments based on rigorous examination of timing and details.

・ Achieve DPU growth through external growth
Use low LTV to acquire prime office buildings focusing on sponsor’s pipeline.
Postpone acquisition of hotel and commercial facilities for the time being.

Aim to maintain DPU growththrough cost control andexternal growth, despite
slowdown of internal growth.

61.

Summary of Financial
Results

Fluctuation in Distribution per Unit

Steady internal growth momentum was maintained.
Plus item

Minus item

Increase in rent and common charge(move-in/ move-out)
Increase in rent and common charge(rent revision etc.)
Decrease in cancellation penalty income andincome equivalent to expense for restoration
Decrease in brokerage fee
Increase in PM fee
Increase in property and other tax

Decrease in rent and common charge-67(move-in/ move-out)
Increase in rent and common charge+53(rent revision etc.)
Improvement of balance of utilities expense +42
Decrease in repairs and maintenance expense +89
Decrease in PM fee+34
Increase in property and other taxes-28
Increase in depreciation
-36

+147
+219
-57
+50
-26
-24

Absence of decreases in previous period +99
Decreases in current period
-51

105
259

Others

102
DPU

341

Impact of External
COVID-19 growthInternal
growthSencity Bldg.
Minami Semba Bldg.

Absence of decreases in previous period

+51

DPU

290

3

DPU

+177
+82

Internal
growth7,720 56

Others7,595 79
Dilution of
publicoffering

7,493

Decrease in rent and common charge-58(move-in/ move-out)
Increase in rent and common charge+46(rent revision etc.)+55
Increase in land rent
Decrease in income penalty and-30
equivalent to expense for restoration
Decrease in repairs and maintenance expense +102
Increase in property and other taxes due to-33
property acquisitions in previous period

Impact of
207 COVID-19
Reductionof large
tenant47

204
External
growthInternal
growthImpact of

191 COVID-19
51

Move-outof large
tenantDPU

165
30
Revaluation

7,500

of property Others
tax

Rise Arena Bldg. -191
Sencity Bldg.
+194
Minami Semba Bldg.
+9Dec. ’19(36th) period
1.

Jun. ’20 (37th) period

Dec. ’20 (38th) period （forecast）

Jun. ’21 (39th) period (forecast）

Fluctuations in distribution per unit are shown in the amount of the change in the variable cost for each fiscal period divided by the number of investment units outstanding as of the end of the fiscal
period preceding each such period (for the fiscal period ending June 2020, the number at the end of fiscal period ended December 2019 is shown).

71.

Summary of Financial
Results

Change in Major Items (Jun. ‘21)

Move-out and status of leasing activities at
Rise Arena Building＜Summary of Property＞
Acquisition price/ date

5,831 million. yen / Mar. 2007

Completed

Jan. 2007

Access

0m from Higashi-Ikebukuro Sta.

4,769 tsubo

Site area (office）

Ownership interest

6-14 Floor：Standard floor space
500 tsubo more overPart of 1F: 14 tsubo

1,822 tsubo(corresponding 38.2%)

Forecast of Property Taxes and City Planning Taxes

・ Property taxes and city planning taxes in the Jun. ’21 period are expected toincrease 137 million yen.
This increase reflects impact of reevaluation of property taxes and city planningtaxes of 105 million yen and impact of absence of effects of property taxes and city
planning taxes on properties newly acquired in Jun. ’20 period of 31 million yen.
・ The increase for Otemachi Tower (land with leasehold interest) can be passed
through to the land rent but since the land rent will be raised 3 months later,higher taxes for 3 months will be borne in the Jun. period.
Collection of property taxes included in Otemachi land rent

（million yen）

Amount of burden (net)Increase in burden due to absence of effects ofproperty taxes and city planning taxes

3,000・ Large-scale redevelopment projects are underway in the surrounding area, including the newhome of the Toshima Ward Office, and the area is expected to develop further in future.
・ The property connects directly to Higashi-Ikebukuro subway station and offers excellent
access to both central Tokyo and Saitama.

2,500
2,000

+137

<Move-out and status of leasing activities>

1,500

31

・ A tenant which had been leasing all office floors will move out at the end of Jan.
2021.

500

・ Of the 9 standard floors (each floor is 500 tsubo more over), 3 have alreadybeen contracted with an increase in rent upon tenant replacement, 1 is underapplication and leasing activities are underway for 5.

0・ Aim to raise rent further through measures such as renovation of common
areas.
・ Impact of the move-out on DPU for Jun. ’21 period is expected to be -191 yen
per unit.

+94

-30

+39

1,000

・ Leasing activities were delayed due to effects of COVID-19 such as cancellationof viewings.

・ Aim to fill vacancy by the end of 2021.

-53

1,251

1,389

1,335

1,430

1,399

1,439

Dec. '20

Jun. '21

Dec. '21

Jun. '22

Dec. '22

Jun. '23 （period）

Actual increaseof burden,
converted to
DPU－-143 yen +55 yen -98 yen +31 yen -41 yen(period-onperiod)

1. “Forecast of property taxes and city planning taxes” are based on TRIM’s estimates.

8

1.

Summary of Financial
Results

Management Policy

Basic Policy
Sustainable Growth of JPR

Internal Growth

External Growth

Financial Strategy

Improve profitability

Expand size of assets andimprove portfolio quality

Build strong financial baseStrategically utilize target rents
Reinforce property competitivenessthrough investments for valueenhancement
Continuously enhance tenantsatisfaction
Increase NOI by reviewing
property management andoperation methods

Focus on office properties
in TokyoMake vigorously
selective investments
Expand acquisition opportunities
through utilization of sponsor
pipeline and preferential
negotiation right
Promote strategic
asset replacement

Lengthen maturity of debts
and borrow funds at fixedinterest rates
Flatten repayment amounts
Diversify means of fundprocurement
Conservatively control LTV

Sustainability
Increase social value and sustainability
Reduce environmental impact
Improve convenience and services for tenants and facility users
Develop human resources9

1. Summary of Financial
Results

Medium-term Target

Distribution per unit has continued to increase steadily over a long
period of time.
Aim for medium-term target of 7,800 yen through sustainable growth
based on growth strategies.
Change in Distribution per Unit and Medium-term Target
DPU（yen/unit）

LTV

8,000

43.7
7,500

7,213
7,048
7,000

7,223

7,380

7,326

7,245

7,595

7,493

（%）

7,800

44.0

7,500

43.0

40.6

40.9
40.6

40.8

40.5

6,500

41.0

PublicOffering

Achieve external growth
by lowering LTV

40.0

39.5

Dec. '16

Jun. '17

45.0

42.0

PublicOffering

40.7

0
6,000

Decrease intemporaryfactor
7,720

Dec. '17

Jun. '18

Dec. '18

Jun. '19

Dec. '19

Jun. '20

Dec. '20（forecast）

39.0

Jun. '21（period）(forecast）

Medium-term
Target38.0

1. Distribution per unit as medium-term target is a management target set by TRIM, and there is no guarantee that the figure is achieved.

10

JAPAN PRIME REALTY INVESTMENT CORPORATION

2. Operational Status and Growth Strategy

11Occupancy Status

2-1. Internal Strategy

Occupancy rate continued to reach new heights in Jun. ’20 period
Rate is also expected to remain at a high level in Dec. ‘20 period
Occupancy Rate and Move-Ins/Move-Outs

Major Move-Ins/Move-Outs

Average occupancy rate
Move-in spaces

98.5%

98.4%

（㎡）

99.2%

Ratio of move-in

99.2%

99.5%

99.6%

1.7

-20,000

Yume-ooka

99.1%

Jun '17-1.1-4.1

Dec '17

Jun '18-145

Office Tower

Move-in-903

789

Shinjuku Square Tower-484 -484 484

1.6

2.7

6

JPR Shinsaibashi Bldg.

-403 403

0.8

3

JPR Sendagaya Bldg.

0

-2.3

（period）

（%）

1.5

-0.8

Dec. ‘20（㎡）

0-10,000

Move-out

98.2%

1.4

Jun. ‘20

Jun. ‘20

Ratio of move-out

4.3

20,00010,000Dec. ‘20

Move-out spaces

Dec '18-2.2
Jun '19-1.7
Dec '19-0.7
Jun '20-3-1,635

Shibadaimon Center Bldg.

-848

Yakuin Business Garden-780

Minami Semba Bldg.

-692

780

-6

Dec '20（period）（forecast）

Fiscal Period of Vacancy Space

Average Rent Free Period（㎡）（month）

10,000

3
5,000

0

9,465

Jun '17

6,982
Dec '17

5,787
Jun '18

3,939
Dec '18

1.5

6,559
Jun '19

2,125

1,646

Dec '19

Jun '20

1.8
Dec '20 （period）

0

2.0

1.5

1.8

1.0

0.8

1.0

Jun '17 Dec '17 Jun '18 Dec '18 Jun '19 Dec '19 Jun '20 Dec '20（period）（forecast）（forecast）

1. The figures for the occupancy rate for the Dec. ‘20 period are estimated based on assumptions by JPR regarding move-ins and move-outs becoming effective in the fiscal period.

12Status of Rent

2-1. Internal Strategy

With steady progress made in upward revision of rents and raising of rents
upon tenant replacement, rents continued to increase
Status of Gap in Rent (Office/By fiscal period of rent renewal）

Monthly Rent Revision Increase/ Decease
Upward revision(million yen)40

(existing tenants)

30

20
10
0

Downward revision

Upward revision(existing tenant and tenant
replacement)(tenant replacement)

3.6

9.0
4.7
14.6
-7.1

3.7
10.0
-4.9

-10

23.2
-7.7

7.2
7.4
-0.8

6.9

12.9

17.1

13.4

-3.7

-2.6

29.2

-30

（million yen）

Higher than market range (new contract, etc.)

Within market range

Higher than market range (except for new contract)

+40

+20

7.0
+0

-0.0

Decreasein large
tenant-20

Forecastincrease/decrease（net）

Lower than market rent

-34.6

Gap in rents

4.8

▲
%
（period-on period
comparison +2.1%pt）

-20

-40

-40

Dec '20

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

Jun '21

Dec '21

Jun '22（period）（forecast）

Area subject to rent renewal each fiscal period/
Ratio of area with increase in rent

Rate of upward revision of monthly rents
Rate of upward revision

Rate of increase in rent upon tenant replacement

27.6

30

21.1
20

Area subject to renewal

Ratio of area with increase in rent

（hundred ㎡）

(%)

16.9

23.7
18.9

16.0

22.4

51.9

51.3

2,000

43.5
1,500

（forecast）

46.5

（%）

60

40

37.8

1,000
10

10.8
0

7.4

7.6

7.5

6.8

7.8

7.7

Jun. '17 Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20（period）
1. Forecast of monthly rent increase/decrease for Dec. ’20 period is sum total of upward or downward revisions andincreases or decreases in rent upon tenant replacement.
2. Forecast of monthly rent increase/ decrease for Dec. ‘20 period is estimates that reflect consents regarding move-ins
and move-outs that will become effective in the fiscal period.

20

500
0
Jun.
'18

Dec.
'18

Jun.
'19

Dec.
'19

Jun.
'20

Dec.
'20

Jun.
'21

Dec.
'21

0
Jun.
（period）'22

13

Status of Retail Properties

2-1. Internal Strategy

JPR’s retail properties are situated in prime locations or in areas close tostations and with high commercial potential
Lease contracts are long-term fixed rent contracts, in principle, andoccupancy rate remains stable at almost full occupancy
Retail Portfolio

Average Occupancy Rate（Retail properties）

Type

Urban type

Station-front type

Characteristics

Urban retail properties situatedon prime locations in Tokyo andOsaka

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

Number ofproperties
Asset size

9 properties
58.5 billion yen

6 properties
46.1 billion yen

（%）

100.0

99.7

99.4

100.0

99.9

99.9

100.0

100.0

100.0

Dec '18

Jun '19

Dec '19

Jun '20

98.0
96.0
0
94.0

Jun '17

Dec '17

Jun '18

Dec '20（period）（forecast）

Status of Lease Contract (Retail properties, Space ratio)

Main Retail properties
Urban type

Remaining contract
periodLess than
2 years

8.0%

5 years
more

20.1%

2 years or more
and less than
3years

25.4%
JPR Umeda Loft
Bldg.

JPR Shibuya
Tower Records Bldg.

JPR Ginza
Namiki-dori
Bldg.

Yurakucho
Ekimae Bldg.

(Yurakucho Itocia)

FUNDES
Ueno

Type of rent
5.5%

Fixed rent +commission

3 years or more
and less than 5
years

Fixed rent

46.5%

94.5%

Stationfront typeType of contract
Fixed term
building lease 12.6%

Kawasaki Dice Bldg.

Tanashi ASTA

1. Asset size is calculated based on acquisition price.

JPR
Musashikosugi
Bldg.

Housing Design
Center Kobe

Tenant sectors
Services 2.0%
Bars &
restaurants
3.0%

Ordinarybuilding
lease

87.4%

Other
3.1%

Retail91.9%

14

Results of Acquisitions

2-2. 内部成長戦略
2-2.
External Strategy

Maintain steady growth through rigorously selective investment utilizing sponsor
pipeline and preferential negotiation right
Acquisitions since 20172017

Property
nameTokyo Square
GardenAcquisition
price

18.4 billion yen

Area

2019

Shinagawa Canal
Bldg.

2020

JPR Kojimachi Bldg.

FUNDES Ueno

Minami Semba Bldg.

Sencity Bldg.

0.17 billion yen

5.75 billion yen

3.8 billion yen

3.75 billion yen

13.87 billion yen

Central Tokyo

Central Tokyo

Central Tokyo

Greater Tokyo

Other cities

Greater Tokyo

Asset class

OfficeOfficeOfficeRetail property

OfficeOfficeAcquiredroute

Sponsor pipeline

Sponsor pipeline
Preferential
negotiation rightSponsor pipeline

Sponsor pipeline

Sponsor pipeline

Sponsor pipeline(additional acquisition）

Investigation of acquisitions throughnegotiated deals

Acquisition area and use ratios since 2017

Greater Tokyo

39%

Other Cities

Retail properties

8%

13%

6 properties
45.7 billion yen
Central Tokyo

53%

Investment
standard
Tokyo
Office6 properties
45.7 billion yen

80~90%
70~90%(Utilizing sponsor pipeline)
Properties acquired
other than fromsponsors
121.7 billion yen

26.6%

Properties acquired

Ratio by portfolio based on information
Office87%(as of Jun. ‘20）

Tokyo
Office

84.5%
77.1%

provided by sponsors
98.2 billion yen 21.5%

Properties
acquisition fromsponsors

237.0 billion yen
51.9%

Properties acquired
using sponsor pipelines

73.4%

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

15

Properties to be Acquired in June 2020 (37th) Period

2-2. 内部成長戦略
2-2.
External Strategy
Sencity Bldg.

Minami Semba Bldg.

（Acquisition Highlights）（Acquisition Highlights）
The property is a large-scale office building with the highest degree ofrarity in all aspects, including its overwhelmingly superior locational
advantages and scale, convenience, high visibility and landmark
characteristics, to be acquired from the subsidiary of sponsor.

Acquisition
price13.87 billion yen

Appraisalvalue

14.6 billion yen

NOI yield

4.9%

Afterdepreciation
yield

3.9%

SellerTaisei-Yuraku Real
Estate Co., Ltd.

Location

Shinmachi, Chuo-ku,
Chiba-shi, Chiba, etc.

Asset class

Office / Retail

Floors

B2/23F

Total leasable
floor space
Occupancyrate
Acquisition
date
Ownership
interest

Property in an ideal location in the Shinsaibashi area, an excellent
commercial area in Osaka, to be acquired from the main sponsor

Acquisition price3.75 billion yen

Appraisal value

3.97 billion yen

NOI yield

4.7%

13,212.98㎡
99.1%
Mar. 27 ‘20

Afterdepreciation
yield

3.9%

SellerTokyo Tatemono
Co., Ltd.

12.4% (Sencity Bldg.)

1. Figures for “Appraisal value” and “Occupancy rate” are as at time of acquisition, and “NOI yield” and “After-depreciation yield” are expected yield at acquisition.

Location

Minamisemba , Chuo-ku,
Osaka

Asset class

Office / Retail

Floors

B1/8F

Total
leasable
floor space
Occupancyrate
Acquisition
date

5,695.71㎡
99.9%
Jan. 30 ‘20

16

2-2. External Strategy

Main Sponsor Pipeline

Further strengthen relationship with Tokyo Tatemono Group
Future growth opportunities will increase through enhancement of sponsor pipeline
Medium-term Business Plan of Tokyo Tatemono(excerpt)

Name

Key Strategies
Expand property sales to investors
Strengthen fund business

Balance 227.1 billion yen (as of Jun.
30, 2020)
AUM 1.5 trillion yen (forecast of ‘24)

・ Increased ratio of shares held in TRIM (effective Apr. 28, 2020)(Before change) 52% ⇒ (After change) 75%
Policy of seeking further expansion of Group earning opportunities

Tokyo Tatemono’s Real Estate for Sale
Asset class

Property name
Sendai Kakyoin Terrace

Mediumsized officeTotal floor area (㎡)
No. guestroom（Hotel）

Completion/plannedcompletion

5,800㎡

Jan. ’20(Name to be determined）
Sapporo station area

Autumn ‘23(tentative）
Kodenmacho project

Urban
compact
retailproperties

Urban
hotel

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

Otemachi Tower

2014

Otemachi Financial
City Grand Cube
JA Building,
Keidanren Kaikan
OtemachiFinancial City
North Tower
Tokyotatemono
Takaracho Bldg.
Tokyo Tatemono No.
3 Takaracho Bldg.
Nihombashi TI Bldg.
Tokyo Tatemono
Nihombashi Bldg.
Nihombashi First Bldg.

2016
2009
2012

1966

2012

Tokyo Metro
Hanzomon Line

2015
1994

Shin-gohukubashi
1977
Bldg.
Tokyo Tatemono
2011
Yaesu Bldg.
NTA Nihombashi
1991
Bldg.
Tokyo Tatemono
Yaesu-sakuradori Bldg. 1974
Tokyo Tatemono
1929
Head Office Bldg.
1986
Yaesumeg Bldg.
Kyobashi YS Bldg.

1990

Spring ‘22

Empire Bldg.

2017
2016

FUNDES Gotanda

1,498㎡

Jul. ‘19

Kyobashi
Edogrand Bldg.
Fukuoka Bldg.

FUNDES Ginza

1,866㎡

Nov. ‘19

Tokyo Square Garden

2013

Candeo Hotels Tokyo Roppongi

149 rooms

Sep. ‘17

Tokyo Tatemono
Kyobashi Bldg.

1981

The Square Hotel Ginza

182 rooms

Aug. ‘18

Hotel Gracery Asakusa

125 rooms

Sep. ‘18

OthersNihoNihombashi
Mitsukoshi Main
Store

1971

1990

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

Daimaru Tokyo
Department StoreTokyo Sta.

MaruzenBook Store
NihoNihombashi
Takashimaya
Department Store

Yaesu
Book Center
Tokyo
Internation
al Forum

Kanematsu
Bldg.
Kanematsu
Bldg. Annex

YurakuchoItociaJR Keiyo Line

Yurakucho Mullion

1. The balance of Tokyo Tatemono’s real estate for sale is the total of the book values of properties owned or developed by Tokyo Tatemono and also include assets not targeted for investment by JPR such as logistics facilities.
2. For the properties shown in this slide other than those that are already owned by JPR, no specific negotiations for acquisition are underway with Tokyo Tatemono and JPR has no plans to acquire any of them at present.。
3. JPR owns the land with leasehold interest of “Otemachi Tower” and co-owns “Tokyo Square Garden”, “Kanematsu Building”, “Kanematsu Building Annex” and “Yurakucho ITOCiA”.

17

2-3. Financial Strategy

Financial Status

Build strong financial base through lengthening of maturity and flattening of
repayment amount and conservative LTV control
Debt Procurement Results in the 37th Fiscal Period(short-term loans excepted)
Beforerefinancing

Afterrefinancing

ChangeAverage maturity

5.4 years

8.8 years+3.4 years

Average debt
interest rate

0.83%

0.53%

-0.30%pt

36th period

37th period(Dec. ’19)

(Jun. ’20)

ChangeInterest-bearing
debt

185.0 billion

187.0 billion+2.0 billion

yen

yen

yen

LTV

40.8%

39.5%

-1.3%pt

Average maturity

4.6 years

4.6 years- years

Average debt
interest rate

0.80%

0.78%

-0.03%pt

99.5%

100.0%+0.5%pt

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

S&P

AA- （Stable）

A （Stable）

Commitment limit

Long-term loans pauable（100 million yen）
Investment corporation bonds
150

24.0 billion yen

Cash and deposits（end of Jun. ‘20） 40.1 billion yen

50

100

Status of Interest-Bearing Debts

Ratio of long-term,
fixed interest rate
debts

Diversification of Repayment Dates

30

20

50 110 98 100105

130

80 80

85

130
70 80

99 100

90
30

50

30
50 42

100
71
40

0
（period）

Change in LTV(%)

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

43

Acquisition capacity
47.1 billion yen

PublicOffering

PublicOffering

42.1
41

40.7
39
Jun '16

40.6

40.6

40.5

Dec '17

Jun '18

Dec '18

40.9

40.8

Jun '19

Dec '19

39.5
Dec '16

Jun '17

Jun '20（period）

18

2-3. Financial Strategy

Diverse Status of Lenders (as of June 30, 2020)

Diversifying fund procurement sources with a lender formation comprising
34financial institutions and through issuance of investment corporation bonds
Sumitomo Mitsui Trust Bank, Ltd
Mitsui Sumitomo Insurance
Company, Ltd
Hiroshima Bank, Ltd.

1.0

The Hyakugo Bank, Ltd.
Tokio Marine & Nichido Fire
Insurance
The Chiba Bank, Ltd.

1.0

Daido Life Insurance Company

1.0

1.0
1.0

（billion yen）

1.0
1.0

Daishi Bank, Ltd

1.0

The 77 Bank, Ltd.

1.0

The Kiyo Bank, Ltd. 【New】

1.0（Breakdown of investment corporation bonds）

Investment
corporation bonds

Mizuho Bank, Ltd

26.5

27.0

The Bank of Tokyo-

NTT FINANCE CORPORATION

1.0

Resona Bank, Ltd.

2.0

Yamaguchi Bank, Ltd.

2.0

The Hachijuni Bank, Ltd

2.0

Nippon Life Insurance Company

2.0

Sompo Japan Insurance Inc.
National Mutual Insurance
Federation of Agricultural
Cooperatives

2.0

The Iyo Bank, Ltd

2.0

The Chugoku Bank, Ltd

3.0

ShinseiTaiyo Life Insurance Company

3.0Bank, Ltd.

The Nishi-Nippon City Bank, Ltd.

4.0

10.0

The Shinkumi Federation Bank

4.0

Interest-bearing
debt balance
187.0 billion yen

4.0

Meiji Yasuda Life Insurance Company

4.2

Mitsubishi UFJ, Ltd.
24.0

Amount7th series of bonds

4.5

18th series of bonds

2.0

19th series of bonds

5.0

21st series of bonds

4.0

22nd series of bonds

3.0

23rd series of bonds
24th series of bonds(Green bond)

3.0
5.0

Sumitomo Mitsui Banking
Corporation
12.5

2.0

Sumitomo Life Insurance Company

Name

Development Bank of Japan, Inc.
10.9

Shinkin Central Bank 7.0
Mizuho Trust & Banking
Co., Ltd. 5.0

The Bank of Fukuoka, Ltd. 6.0（ Status of commitment line）

LenderCreditlimit

Mizuho Bank, Ltd.

4.0

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

4.0

Mizuho Trust & Banking Co, Ltd.

4.0

Resona Bank, Ltd

4.0

Total

24.0

4.0

4.0

The Norinchukin Bank 5.0 Aozora Bank, Ltd. 5.919

Highlights

2-4. Sustainability■ Acquisition of environmental certification■ Achieved "5 Star" the Highest Ranking in GRESB• Acquisition of the highest ranking of “5 Stars” rating in GRESB Rating,which is a relative rating based on overall score• Acquisition of “Green Star,” the highest ranking, for six consecutive years• Acquisition of the highest ranking of “A” in ESG information disclosurelevel assessment.

Focus on improving rate of acquisition of environmental certification,
aiming for portfolio with low environmental impact and high sustainability
（％）

Total
area
延床面積

80

53.4

60

（thousand ㎡）

Ratio
取得比率

60.1

54.4

34.0

40

400
200

20
0
Dec. '18
2018.12■ CO2 Emission Data

Third-party assurance has been received for some of the environmental
data to ensure the reliability of the data.
Item

Units

FY2017FY2018FY2019ChangeCO2Emission

tCO2

56,68650,72649,726-2.0%

tCO2/㎡

0.084

0.079

0.076

-2.8%

■ Disaster initiatives
Seeking to further strengthen resilience in light of the mega-disasters inrecent years(Actions currently being taken)• Continuously conducting monitoring using
portfolio hazard map• Assessing latest risks in areas in which
properties are located and seeking tostrengthen facilities accordingly• Conducting regular onsite assessments ofdisaster-prevention equipment at each
property• Sharing disaster risks with site managers,
sharing current issues to be addressed, etc.
and issuing instructions on actions to be takenin the future

Jun.
‘19
2019.6(DBJ Green Building Certification)
RankingDec.
‘19
2019.120Jun.
‘20 ( period)
2020.6( as of Jun. 30 ‘20)

Property name★★★★★

Tokyo Square Garden, Olinas Tower★★★★

Oval Court Ohsaki Mark West, Shinjuku Center
Bldg., JPR Sendagaya Bldg.

★★★

Kanematsu Bldg., BYGS Shinjuku Bldg.,
Shinagawa Canal Bldg., Omiya Prime East,
Rise Arena Bldg., Yume-ooka Office Tower,
Kawasaki Dice Bldg.

★★

JPR Crest Takebashi Bldg., Shinjuku Square
Tower, Minami Azabu Bldg., JPR Chiba Bldg.

(CASBEE for Building Certification)

Provision of simple emergency
generators, given the importance of
charging smartphones in the event ofdisaster

600( as of Jun. 30 ‘20)

Ranking

Property name★★★★★

JPR Kojimachi Bldg., FUNDES Ueno, JPR
Musashikosugi Bldg., Musashiurawa Shopping
Square, Sompo Japan Sendai Bldg.,JPR Umeda
Loft Bldg., Housing Design Center Kobe★★★★

Kawaguchi Center Bldg., JPR Shibuya Tower
Records Bldg., Yakuin Business Garden

20

JAPAN PRIME REALTY INVESTMENT CORPORATION

3. Financial Results and Forecasts of Financial Results

21

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 37th Fiscal Period(Jun. ’20) (period-on-period comparison)

Results of the 37th fiscal period ended June 2020
DPU: 7,595 yen (up 102 yen, period-on-period)

Previous medium-term DPU target of 7,500 yen was achieved thanks to internal and external
growth, which offset effects of COVID-19 and dilution through issuance of new investment units
Dec. 31 '19

Jun. 30 '20

36th Period
Operating revenue
16,005
Rental revenue
16,005
Operating expense
8,320
Expenses related to rent business
7,538
Revenue
General and adminisutrative expenses
and profit
782(million Operating income
7,684
yen)
Non-operating income
7
Non-operating expenses
777
Ordinary income
6,915
Net income
6,914
DPU (yen) (per unit)
7,493

37th Period
16,363
16,363
8,350
7,436
914
8,013
51
787
7,277
7,276
7,595

Item

Number of units outstanding

923,000

958,250

ChangeItem

36th Period 37th Period Change

Acquiredproperties

+357
+357
+29
-102
+131
+328
+43
+9
+362
+362
+102

Rental revenue
Rental revenue
Rents and common charge

Land rent-3

15,081

15,674

+592

+343

+249

12,93913,520

+580

+337

+243

1,774

1,783

+9

-

+9

370

+2

+5

-3

924

689

-234

+18

-253

Incidental income

①

②

620

-179

+16

-196

9

-12

-

-12

Income equivalent to expense forrestoration

62

21

-40

-

-40

Other variable income

40

37

-2

+1

-3

Expenses related to rent business

7,538

7,436

-102

+121

-223

Outsourcing fees

609

615

+6

+9

-3

Utilities expenses

866

712

-154

+32

-187

③

2,335

2,358

+22

+0

+22

④

25

26

+0

+0

+0

Repairs and maintenance

610

602

-7

+3

-11

Property management fees

299

331

+32

+8

+24

Management association accounts

570

573

+3

+7

-3

1,973

2,027

+53

+58

-5

247

187

-59

+0

-60

10,441

10,954

+513

+298

+215

+0.2%pt

+239

+220

⑧

Property and other taxes

Depreciation

Expenses related to rent business⑧［Non-operating expense］ Increased due to posting of loss on retirement of non-current
assets despite decrease in financial costs such as interest expense

+361

21

① ［Rent and common charge］Increase mainly due to full-year contribution of tenants which
moved in the precious fiscal period and upward revision ofrents despite rent reductions in response to COVID-19 outbreak.
② ［Incidental income］Use decreased due to seasonal factors and the effects of COVID-19⑥ ［General and administrative expense］Asset management fees increased due to changes infee structure⑦ ［Non-operating income］Increased mainly due to recording of settlement on management
association accounts and insurance premiums

+357

799

Rental revenue

General and administrative expense, non-operating revenue and expense

16,363368

Insurance premiums④ ［Property and other taxes］Increase due mainly to occurrence and revaluation of fixed
property taxes and city planning taxes on properties acquired theprevious fiscal period⑤ ［Other expenses related to rent business］Brokerage fees, advertising expenses and otherexpenses decreased※2

16,005Cancellation penalty, etc.

⑦

+35,250③ ［Utilities expense］Use decreased due to the effects of COVID-19, and balance of utilities
expenses worsened (-9 million yen)

Existing
properties

Other rental revenue

Other fixed income⑥※1

Other expenses related to rent business

NOI
NOI yield (book value)

5.0%

5.2%

Rental income-real estate

8,467

8,927

+460

After-depreciation (book value)

4.1%

4.2%

+0.1%pt

Occupancy rate based on cncluded contract(period average)

99.5%

99.6%

+0.1%pt⑤*1 The increase/decrease due to the acquisition of the Minami Semba Building in the 37th fiscal period and the
Sencity Building that is scheduled to be acquired is calculated.
*2 Increase/decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in (i) to (v)).

22Overview of Financial Results for the 37th Fiscal Period(Jun. ’20) (period-on-period comparison)

3. Financial Results andOperating Forecasts

Result of the 37th fiscal period ended June 2020
Total assets: 473.1 billion yen, Total Unitholders’ Equity per unit: 266,984 yen
Item
Current Asset
Cash and deposits (including trust)
Other current asset

Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets

Deferred assets
Investment corporaton bond issuance costs

Investment unit issuance expenses

BalanceSheet(millionyen)

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans payable

Other current liabilities

Noncurrent liabilities
Long-term loans payable
Investment corporation bonds
Tenant leasehold and security deposits

Total liabilities
Unitholders' capital
SurplusReserve for reduction entry
Unappropriated retained earnings

Total net assets

Dec. 31 '19

Jun. 30 '20

36th Period
38,196
37,775421
415,140
402,700
11,805
633
130
129
0
453,467
29,5401,000
21,0007,540
184,657
136,520
26,50021,637214,198
231,653
7,616
689
6,926
239,269

37th Period
40,71940,100619
432,310
419,822
11,805
682
157
119
37
473,186
27,80820,820
6,988
189,540
139,700
26,50023,340217,348247,860
7,977
689
7,287
255,838

Change+2,522+2,324+197+17,169+17,121
-0
+48
+26
-9
+36
+19,719-1,731-1,000-180-551+4,882+3,180+1,702+3,150+16,207+360+360+16,568

Procurement of funds through issuance of new investment units
New number of units 35,250 unit

purposeTo acquire new propeties and repay borrowing

Increase or decrease in cash and deposits
Item

ChangeNet cash provided by operating activities+8,967

Income before income taxes+7,277

Depreciation and amortization+2,027

Other, net-338

Net cash provided by investing activities
Purchase of property, plant and equipment

Other, net-17,892-19,573+1,681

Net cash provided by financing activities+11,250

Proceeds from lisbilities+13,000

Repayment of liabilities-11,000

Proceeds from issuance of investment units+16,165-6,915

Dividends paid

Total cash and deposits+2,324

Increase or decrease in noncurrent assets
Item

ChangeAcquire properties+17,808

Capital expenditures+1,380Depreciation-2,027

OthersTotal noncurrent assets+8+17,169

Increase or decrease in liabilities
Item

New procurement

Repayment/
redemption

Balance at end ofcurrent period

ChangeShort-term loans payable

-

1,000

-

-1,000Long-term loans payable

13,00010,000160,520+3,000Investment corporation bonds--

26,500-13,00011,000187,020+2,000Total liabilities233. Financial Results andOperating Forecasts

Overview of Financial Results for the 37th Fiscal Period(Jun. ’20) (compared with forecast)

Results of the 37th fiscal period ended June 2020

DPU compared with the forecast : up 5 yen
Average occupancy rate during the fiscal period reached a record high of 99.6%
Results exceeded initial forecasts despite the effect of COVID-19

Expenses related to rent business
Revenue
Selling, general and adminisutrative expenses
and profit(million Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
DPU (yen) (per unit)

Jun. 30 '20
37th Period(forecast)
16,43916,439
8,450
7,538
912
7,989
58
760
7,287
7,286
7,590

Jun. 30 '20
37th Period(actual)16,363
16,363
8,350
7,436
914
8,013
51
787
7,277
7,276
7,595

Number of units outstanding (unit)

960,000

958,250

Item
Operating revenue
Rental revenue
Operating expense

37th Period(forecast)

37th Period(actual)ChangeAfter-depreciation (book value)

16,43915,64013,490
1,783
366
799
758
41
7,538
620
825
2,400
23
578
320
574
2,035
159
10,937
5.1%
8,901
4.2%

16,363
15,674
13,520
1,783
370
689
620
9
21
37
7,436
615
712
2,358
26
602
331
573
2,027
187
10,954
5.2%
8,927
4.2%

-76
+33
+29
-0
+4
-110
-137
+9
+21
-3
-101
-4
-113
-42
+2
+24
+10
-0
-7
+28
+17
+0.1%pt+25- %pt

Occupancy rate based on cncluded contract(period average)

99.5%

99.6%

+0.1%pt

Item

Change
-76
-76
-100
-101
+1
+23
-6
+26
-9
-9
+5
-1,750Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income
Other rental revenue
Incidental income⑥

Cancellation penalty, etc
Income equivalent to expense for restoration
to original condition

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

Rental revenue① ［Rent and common charge］Increased mainly due to rent revisions and progress ofleasing activities② ［Incidental income］Use decreased due to the effects of COVID-19

Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Expenses related to rent business③ ［Utilities expense］Use decreased due to the effects of COVID-19, and balance ofutilities expenses worsened (-24 million yen)

Depreciation
Other expenses related to rent business④ ［Property and other taxes］Decreased mainly due to refund associated with morereasonable fixed-property tax valuation⑤ ［Other expenses and administrative expenses］Brokerage fees, etc. increased

NOI
NOI yield (book value)

Non-operating income and expense

Rental income-real estate⑥ ［Non-operating expense］Increased due to posting of loss on retirement of non-current
assets

①

②

③
④

⑤

24

Forecasts of Financial Results for the 38th Fiscal Period (Dec.
‘20) (compared with 37th period)

3. Financial Results andOperating Forecasts

Forecast of the 38th fiscal period ending December 2020
DPU: 7,720 yen (up 125 yen from 37th period (Jun. ‘20) forecast)
Cash distributions are expected to increase thanks to the full-year occupancy of properties
acquired in the previous fiscal period, despite the ongoing effects of COVID-19
Item

Jun. 30 '20

Dec. 31 '20

37th Period

38th Period (forecast)

Expenses related to rent business
Revenue
General and administrative expenses
and profit(million Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
DPU (yen) (per unit)

16,363
16,363
8,350
7,436
914
8,013
51
787
7,277
7,276
7,595

Number of units outstanding (unit)

958,250

Operating revenue
Rental revenue
Operating expense

ChangeItem

37th Period

38 th Period(forecast)

Change16,695
16,695
8,595
7,649
945
8,100
41
743
7,399
7,398
7,720

+332
+332
+244
+213
+31
+87
-9
-44
+121
+121
+125

Rental revenue
Rental revenue

958,250-

16,363
15,674
13,520
1,783
370
689
620
9
21
37
7,436
615
712
2,358
26
602
331
573
2,027
187
10,954
5.2%
8,927
4.2%
99.6%

16,69515,75013,576
1,793
380
945
877
10
18
38
7,649
632
907
2,386
26
532
302
589
2,086
186
11,132
5.1%
9,045
4.2%
99.1%

+332
+76
+56
+9
+10
+256
+257
+1
-3
+1
+213
+16
+195
+27
+0
-70
-28
+16
+58
-1
+177
-0.1%pt+118- %pt-0.5%pt

Rents and common charge⑥

Rental revenue① ［Rent and common charge］ Existing property’s rents are expected to decrease due
to late closing according to the effect of COVID-19 anddiscount rent by the large tenant.
② ［Incidental income］ Likely to increase mainly due to seasonal factors

Expenses related to rent business③ ［Utilities expense］ Likely to increase due mainly to seasonable factors, and balance ofutility expenses is expected to improve④ ［Property and other taxes］ Expected to increase in the absence of the refund of
fixed property taxes and city planning taxes received
in the previous period⑤ ［Property management fee］ Fees for upward revision of rents will decrease

Non-operating income and expense⑥ ［Non-operating expense］ Expected to decrease mainly in the absence of loss onretirement of non-current assets recorded in the previous fiscal
periodLand rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

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

Depreciation
Other expenses related to rent business

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

Acquiredproperties

Existing
properties

+282
+219
+216
+2
+62
+61
+1
+92
+1
+40
-0
+0
+15
+4
+6
+23
-0
+213

+50
-143
-160
+9
+7
+193
+195
+1
-3
-0
+121
+15
+154
+27
-0
-85
-33
+9
+34
-1
-36

+190

-71

*1 The increase/decrease due to the acquisition of the Minami Semba Building in the 37th fiscal period and the
Sencity Building that is scheduled to be acquired is calculated.
*2 Increase/decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ⑤).

①

②

③
④

⑤

25

Forecasts of Financial Results for the 39th Fiscal Period (Jun.
‘21) (compared with forecast 38th period (Dec. ‘20))

3. Financial Results andOperating Forecasts

Forecast of the 39th fiscal period ending June 2021
DPU: 7,500yen (down 220yen from 38th period (Dec. ‘20) forecast)

Cash distributions are expected to decrease, reflecting contract cancellation by a large tenant andincreasing property and other taxes
With an eye on a new medium-term goal, aim for stable growth through the proactive upward revision ofrents and cost control.
Item

Dec. 31 '20

Jun. 30 '21

38th Period (forecast) 39th Period (forecast)

Operating revenue
Rental revenue
Operating expense
Revenue andGeneral and adminisutrative expenses
profitOperating income(million yen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
DPU (yen) (per unit)

16,695
16,695
8,595
7,649
945
8,100
41
743
7,399
7,398
7,720

16,475
16,475
8,609
7,669
940
7,866
53
731
7,188
7,187
7,500

-220
-220
+14
+19
-5
-234
+12
-11
-210
-210
-220

Number of units outstanding

958,250

958,250-

Expenses related to rent business

Item

ChangeRental revenue
Rental revenue
Rents and common charge⑥⑦

Rental revenue① ［Rent and common charge］Expected to decrease due to contract cancellation by a large tenant② ［Land rent］Land rent for Otemachi Tower (land with leasehold interest) will be revised as a resultof increase in fixed property and city planning taxes (contribution for 3 months
from April)③［Incidental income］Likely to decrease chiefly due to seasonal factors

Expenses related to rent business④［Utilities expense］ Expected to decrease primarily due to seasonal factors, and balance of utility
expenses is likely to worsen slightly⑤ ［Property and other taxes］Property and city planning taxes are expected to increase due torevaluation of property tax and occurrence of expenses forproperties acquired in the previous year

Non-operating income and expense⑥ ［Non-operating revenue］Likely to increase due to recording of settlement on management
association accounts⑦ ［ Non-operating expense］Financial costs such as interest expense will decrease

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration to original condition

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

Depreciation
Other expenses related to rent business

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

38th Period(forecast) 39th Period(forecast)

16,69515,75013,576
1,793
380
945
877
10
18
38
7,649
632
907
2,386
26
532
302
589
2,086
186
11,132
5.1%
9,045
4.2%
99.1%

16,475
15,65813,431
1,846
380
817
776
41
7,669
624
816
2,584
27
434
303
593
2,099
186
10,905
5.1%
8,806
4.1%
98.6%

Change
-220
-92
-145
+53
+0
-127
-101
-10
-18
+2
+19
-7
-91
+198
+0
-97
+1
+3
+13
+0
-226
- %pt
-239

①
②

③

④
⑤

-0.1%pt-0.5%pt

26

3. Financial Results andOperating Forecasts

Item

Operating revenue
Rental revenue (fixed income)Rents and common charge
Land rent
Other fixed income
Other rental revenue (variable income)incidental income
Cancellation penalty, etc.
Income ecquivalent to expense for restoration to original condition

Other variable income
Expenses related to rent business (excluding depreciation)

Outsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees

Rental business profits(million yen)Management association accounts
Other expenses related to rent business

NOI
Depreciation
Expenses related to rent business
Rental income-real estate（a）
Capital expenditures
NCF
Gain on sale of real estate（b）
Gain or loss on sale ofproperties (million yen)
Loss on sale of real estate（c）
Rental income-real estate, etc. (million yen, a+b-c）

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

35th Period

36th Period

37th Period(Jun. 30, '19)

Change(Dec. 31, '19)

Change(Jun. 30, '20)

Change15,695
14,857
12,723
1,726
407
838
683
46
71
36
5,384
593
782
2,349
24
578
293
569
192
10,311
1,965
7,349
8,346
1,325
8,986
405
8,751

0.3%
0.9%
0.7%
2.8%

16,00515,081
12,939
1,774
368
924
799
21
62
40
5,564
609
866
2,335
25
610
299
570
247
10,441
1,973
7,538
8,467
1,582
8,858
8,467

2.0%
1.5%
1.7%
2.7%

16,363
15,674
13,520
1,783
370
689
620
9
21
37
5,408
615
712
2,358
26
602
331
573
187
10,954
2,027
7,436
8,927
1,380
9,574
8,927

2.2%
3.9%
4.5%
0.5%

-9.8%
-14.7%

0.3%-0.2%-12.3%
6.3%
1.6%

0.3%
1.1%
0.5%
0.1%
17.7%
-1.9%

4.9%

10.3%
17.0%

3.4%
2.7%
10.7%
-0.6%
5.4%

1.3%
0.4%
2.6%
1.5%
19.5%
-1.4%

-3.3%

-25.4%-22.5%-2.8%
1.0%-17.8%
1.0%
-1.3%

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

5.4%

38th Period

39th Period(Dec. 31, '20)
(forecast)
16,69515,75013,576
1,793
380
945
877
10
18
38
5,563
632
907
2,386
26
532
302
589
186
11,132
2,086
7,649
9,045
1,623
9,508
9,045

(Jun. 30, '21)
(forecast)
16,475
15,65813,431
1,846
380
817
776
41
5,570
624
816
2,584
27
434
303
593
186
10,905
2,099
7,669
8,806
1,569
9,335
8,806

Change

2.0%
0.5%
0.4%
0.5%
37.2%
41.5%

2.9%
2.8%
27.4%
1.2%
-11.7%

1.6%
2.9%
2.9%
1.3%
17.6%
-0.7%

1.3%

Change

-1.3%
-0.6%
-1.1%
3.0%
-13.5%-11.5%

0.1%-1.3%-10.1%
8.3%-18.4%

-2.0%
0.6%
0.3%
-2.6%
-3.3%
-1.8%

-2.6%

27

3. Financial Results andOperating Forecasts

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

Rental revenue for the Dec. ‘20 period is expected to rise approx. 700 million yen (period-on-period)
Rental revenue for the Jun. ‘21 period is expected to fall approx. 900 million yen (period-on-period)

Rent revenue (factor for period-on-period changes)
Minus item

+322

-187

+337

+222

Dec. ’19

Impact of
COVID-19

Revisions,
etc.

+49

+53

-183

‐198

+202
Absence of decreases inprevious period+94
Decreases in current period -49(36th) period+113 -169+44

15,65815,653
Others+45+19Move-outof majortenant-166 +51

Acquisition

Impact of
COVID-19

Revisions,
etc.

Move
-ins

+102

Move
-outs

Others+11

Reductionof large
tenant－94

15,674
Acquisition

Impact of
COVID-19

Revisions,etc.

15,081

Move
-ins

Move
-outs

Rents and+580
common charge

15,75015,731Move-outs

Rents andcommon charge +56（million yen）

Rents and-145
common charge

Move
-ins

Plus item

OthersRent revenue

Jun. ’20 (37th) period

Dec. ’20 (38th) period (forecast）

Absence of decreases inprevious period+49

Jun. ’21 (39th) period (forecast）

28

JAPAN PRIME REALTY INVESTMENT CORPORATION

4. Appendix

29

4. Appendix

Fund Summary
32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

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

40.6%

40.6%

40.5%

40.9%

40.8%

39.5%

(unrealized gains andlosses)

35.5%

34.9%

34.2%

33.9%

32.9%

32.2%

(acquisition value)

4.7%

4.7%

4.7%

4.8%

4.7%

4.9%

(book value)

4.9%

4.9%

5.0%

5.1%

5.0%

5.2%

(appraisal value)

4.3%

4.2%

4.1%

4.1%

4.0%

4.1%

Afterdepreciationyield(acquisition value)

3.8%

3.8%

3.8%

3.9%

3.8%

4.0%

(book value)

4.0%

4.0%

4.0%

4.1%

4.1%

4.2%

(appraisal value)

3.5%

3.4%

3.4%

3.3%

3.2%

3.4%

Implied cap
rate

NOI yield

3.9%

3.7%

3.7%

3.3%

3.4%

4.6%

After-depreciation yield

3.2%

3.0%

3.0%

2.7%

2.7%

3.7%

FFO

8,587 million yen

8,632 million yen

8,707 million yen

8,776 million yen

8,888 million yen

9,341 million yen

AFFO

7,962 million yen 7,485 million yen

7,581 million yen

7,451 million yen

7,305 million yen

7,961 million yen

LTV

NOI yield

FFO per unit

9,303 yen

9,352 yen

9,433 yen

9,508 yen

9,630 yen

9,748 yenEPS7,221 yen

7,243 yen

7,324 yen

7,818 yen

7,491 yen

7,593 yen

Cash distribution per unit

7,223 yen

7,245 yen

7,326 yen

7,380 yen

7,493 yen

7,595 yen

3.9%

3.5%

3.5%

3.0%

3.1%

4.6%

Dividend yield
ROE

5.6%

5.6%

5.7%

6.0%

5.8%

5.7%

308 yen308 yen308 yen

746 yen

746 yen719 yen

Net asset per unit

258,525 yen

258,546 yen

258,626 yen

259,118 yen

259,230 yen

266,984 yen

NAV per unit
Investment unit price

320,060 yen

329,845 yen

341,007 yen

353,795 yen

368,917 yen

371,053 yen

367,000 yen

416,500 yen

423,000 yen

490,500 yen

488,000 yen

329,000 yen

NAV multiple

1.1 times

1.3 times

1.2 times

1.4 times

1.3 times

0.9 times

PBR

1.4 times

1.6 times

1.6 times

1.9 times

1.9 times

1.2 times

PER

25.4 times

28.7 times

28.9 times

31.4 times

32.6 times

21.7 times

FFO multiple

19.7 times

22.3 times

22.4 times

25.8 times

25.3 times

16.9 times

53.4%

53.5%

53.4%

52.9%

52.8%

54.1%

（FFO）

77.6%

77.5%

77.7%

77.6%

77.8%

77.9%

（AFFO）

83.7%

89.3%

89.2%

91.4%

94.7%

91.4%

Reserve for reduction entry per unit

(immediately before the ex-right date)

Unitholder’s equity ratio
Pay out ratio

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

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

10.
11.
12.

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

13.
14.
15.

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

30

4. Appendix

Portfolio■ Asset Size (based on acquisition price, 100millin yen）, Average age of building
Office properties
in Tokyo

Office properties
in Other Cities

Average
築年数 age of building

Retail properties

16.3 16.8

17.5 18.0 18.0

19.3
18.3 18.8

19.8 20.3

20.8

22.0
21.3 21.3 21.0 21.5

22.5 22.5 23.0

23.7

4,571
4,3954,395
4,2144,3504,3504,3504,350
Breakdown by area
4,103
4,103
4,095
13.0 13.5
3,9193,9864,0474,0474,055
12.7 12.8 13.1 13.2
and by asset class
12.4
3,809
12.2
12.0
(as of Jun. 30, 2020)
10.5 11.0
3,449
3,415
3,415
3,312
Office properties in
2,9943,106
Tokyo
2,7512,806
2,4532,519
307.5
billion yen
2,224
1,9762,0262,092
Officeproperties
in
1,796
1,636
Other Cities
1,396
1,257
44.8 billion yen
945
921
Retail properties
15.0 15.2 14.7 15.4 15.5

14.0

104.7 billion yen
120
110
100 .0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

1

2
'02

3

4
'03

5

6

7

'04

8
'05

9

10
'06

11

12

13

'07

14

15

'08

16

17

'09

18

'10

19

20

'11

21

22

'12

23

24

25

'13

26

'14

27

28

29

'15

30

'16

31

32

33

'17

34

'18

35

36

'19

37 （period）'20 （year）■ Every Kind of Ratio
Ratio by Asset Class

Ratio by Area

(Ratio of Acquisition Price)(Ratio of Acquisition Price)

Ratio by Asset Size
(Office Properties, Ratio of Acquisition Price)

Medium-sized
Retailproperties(3,000 m2 to less than
10,000 m2)

Other Cities

15.5%

22.9%
Portfolio management
standards
70 - 90%
for office properties

30.3%

Portfolio management
standards

77.1%(30,000 m2 or more)

Less than 15
thousand yen

2.6%

46.8%
15 to less than 20
thousand yen

30 thousand yen
more

29.5%

Ratio by Contract Type(Office Properties, Area Ratio)
Fixed-term lease
contract

13.5%

31.5%

80 - 90% for Tokyo

Greater Tokyo
Office30.7%
properties

Very large

Ratio by Rent Zone
(Office Properties in Central Tokyo, Ratio of Acquisition Price)

Large

Central Tokyo

53.7%(10,000 m2 to less than
30,000 m2)

20 to less than 25
thousand yen

25 to lessthan 30
thousand yen

22.9%

14.8%

21.7%

Ordinary
lease
contract

86.5%

31

4. Appendix

Diversification of Tenants (as of June 30, 2020)■ Ratio of Tenant Occupancy■ 20 Largest Tenants (by property; based on end tenants)• The number of office tenants other than the sponsors, etc. withtenant occupancy of 1% or more is only 3 (combined occupancy:3.5%) (excluding property comprising land with leasehold interest).

Category(No. of tenants)• Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenantswith 1% or more

26.9%
Sponsors, etc.
with 1% or more

Less than 1%

68.1%

Sponsors, etc.
with 1% or more
(1 company)(Office Properties, Area Ratio)
1.4%

Other
その他
0.8%

Public Services 3.8%
Construction 7.6%

Services

24.8%

Wholesale and Retail

Information andCommunications
Finance andManufacturing
Insurance

11.3%

11.4%

35,444.13

7.1

Seiyu GK

Tanashi ASTA

31,121.71

6.2

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

3.9

JPR Umeda Loft Bldg.

18,586.97

3.7

9,558.51

1.9

8,076.85

1.6

15.3%

Musashiurawa Shopping
SquareJPR Shibuya Tower Records
Bldg.

A company

Cupo-la Main Bldg.

5,963.00

1.1

B companyMusashiurawa Shopping Square

5,285.40

1.0

Tokyo Prime Stage Inc.

The Otemachi Tower(land with Leasehold Interest

7,875.50

1.5

C company

Yakuin Business Garden

6,029.57

1.2

Rise Arena Bldg.

6,023.39

1.2

E company

Olinas Tower

5,263.77

1.0

F company

JPR Nagoya Fusimi Bldg.

4,904.64

0.9

G company

Sompo Japan Sendai Bldg.

4,379.30

0.8

H company

Olinas Tower

4,255.56

0.8

Shinjuku Square Tower

4,242.48

0.8

Gotanda First Bldg.

4,234.29

0.8

K company

Niigata Ekinan Center Bldg.

4,078.97

0.8

L company

Omiya Prime East

4,005.05

0.8

M company

MS Shibaura Bldg.

3,922.74

0.7

I company
Less than 1%(839 companies) J company

Real Estate 10.0%

10.5%

Housing Design Center Kobe

Other tenants with
1% or more
D company(3 companies)■ Ratio by Tenant’s Industry
Transportation 3.2%

ABC Development Corporation

Tower Records Japan Inc.

Other tenantswith 1% or more3.5%

Medical and Welfare

Occupying property

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

1.6%

Ratio of
Leased space
occupancy(㎡)(%)

Tenant1. “Ratio of occupancy” is rounded down to the second decimal place.

32

4. Appendix

Move-Ins and Move-Outs of Tenants (as of June 30, 2020)■ Breakdown and Changes in Move-Ins and Move-Outs(Move-in/move-out spaces by area and asset class: m2)

Move-Ins■ Move-In/Move-Out Spaces by Property(Move-ins)‐(move-out)

-484

0

Shinjuku Center Building

0

-199

200

Ginza Sanwa Bldg.

0

-40

40

Science Plaza - Yonbancho Plaza

140

Office properties inCentral Tokyo

1,021

Office properties inGreater Tokyo

1,854-1,274

580

Tokyo Square Garden-39

Office properties in
Other Cities

911-1,289-377

JPR Kojimachi Bldg.

155

Retail properties

87

0

87

JPR Chiba Bldg.

75

-255

Shinyokohama 2nd Center Bldg.

98

-115

Kawaguchi Center Bldg.

430

Tachikawa Business Center Bldg.

90

Yume-ooka Office Tower-114

Kawasaki DICE Bldg.

87

Tokyo Tatemono Honmachi Bldg.

-25

-25

JPR Hakata Bldg.

-135

-208

72

JPR Naha Bldg.

-81

-175

94

Sompo Japan Sendai Bldg.

117

Sompo Japan Wakayama Bldg.

0

Tenjin 121 Bldg.

54

JPR Dojima Bldg.

-308

JPR Shinsaibashi Bldg.

0

Total

3,876

-763

-3,328257

547■ Reasons for move-ins and move-outs
Other
Consolidation
Better location 3% 6%
or building 3%

Move-ins
33
Moving within thesame building
36%

Other
6%
New
establishment
or expansion
52%
Move-outs
Consolidation
17
47%

Downscaling
Cost reduction
47%

（㎡）

484

Shinjuku Square Tower

Net
Increase/DecreaseMove-Outs

Move-ins

Move-outs

140
-39
155
331
213
430
90
-903

789
87

117
-168

169
54

-308
-403

403

33

4. Appendix

Yields (as of June 30, 2020)■ Yields by Area and by Asset Class(based on book value)

Central Tokyo(NOI yield)（%）

10

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

6.6%

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.

4.4%

5.1%

Portfolio average
5.2%

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

BYGS Shinjuku Tower

0

Minami Azabu Bldg.

(After-depreciation yield)

Shinagawa Canal Bldg.

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

Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.

OfficeOfficeOfficeRetailproperties in properties in properties inCentral Tokyo Greater Tokyo Other Cities properties

5

5.0%

4.8%

3.8%

Portfolio average
4.2%

0

10

（%）

4.3%

JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(land with leasehold Interest)

Science Plaza-Yonbancho Plaza
Shibadaimon Center Building
Tokyo Square Garden
JPR Kojimachi Bldg.
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
JPR Ginza Namiki-dori Building
FUNDS Suidobashi
Average of Central Tokyo

0

15

5

10

JPR Chiba Bldg.

6.9
5.8
6.9
5.8
6.3
5.0
3.5

JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.

7.8
8.5
7.1
6.8
6.7
6.0
6.0
7.9
5.7

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

9.0

Tokyo Tatemono Yokohama Bldg.
Omiya Prime East

4.9
5.4

Sencity Bldg.

8.4
3.4
3.4
5.0
6.9
5.3
5.6
2.9
3.9
3.5
5.6
6.9
3.4
3.5
4.7
3.1
3.5
3.1
3.1
3.8
4.3

15

6.6
7.3
6.8

Arca East Bldg.

4.2

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

105Oval Court Ohsaki Mark West
Shinjuku Square Tower（%）

GreaterTokyo and Other Cities
東京周辺部及び地方（%）

0

OfficeOfficeproperties in
OfficeGreater Tokyo properties in Retailproperties in
Other Cities
properties
Central Tokyo

6.6%

5

■ NOI Yield by Property (based on book value)

10.4

Tanashi ASTA

9.2

Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Average of Greater Tokyo

4.4

6.1
4.7
3.8
6.7
10.4

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.

3.0

JPR Hakata Bldg.
JPR Naha Bldg.

7.7
6.6

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

4.1

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

14.4

8.2
7.9

11.1
10.2

8.0

3.4

5.6
4.3
5.3
4.6
5.9

34

4. Appendix

Occupancy Rate and Rent

■ Change in Occupancy Rate and Eents
Jun. 2017(31st period)

Dec. 2017(32nd period)

Jun. 2018(33rd period)

Dec. 2018(34th period)

Jun. 2019(35th period)

Dec. 2019(36th period)

Jun. 2020(37th period)

97.8

97.8

97.6

98.8

98.8

99.2

99.4

17,57917,626

17,85917,98018,177

18,47718,801

20,70520,74820,882

21,053

21,45921,83322,183

16,861

16,88817,134

17,233

17,24017,403

18,13912,164

12,322

13,032

13,14913,375

13,562

13,720Gap in rent（%）

-1.1

-3.1

-3.2

-4.1

-5.1

-6.9

-4.8

Occupancy rate (period

100.0

99.7

99.4

99.9

99.9

100.0

100.0

Item
Occupancy rate (period

RetailOfficeaverage),%

Average rent (entire area),yen
Average rent (central Tokyo),
yen
Average rent (greater Tokyo),
yen
Average rent (other cities),yenaverage),%■ Status of Rent revision, Rent Through Tenant Replacement
and Contribution Rate (Jun. ‘20)
Item
Rent revision subtotal
Upward revision of rent

■ Leased Area by Rent Level/Ratio of Contracts
with Upward Rent Revision (Contracts renewed Jun. ’20 period)

Number ofcontracts

Area
(m2)

Area
ratio(%)

Increase/
Decrease(millionyen)

Increase/
Decreaseratio (%)

246

154.6

97.7

+29.2

+3.9

139

71.9

45.4

+29.2

Area
(thousandm2)

Area ratio(%)

Ratio ofcontractswith upwardrevision (%)

Less than market rent

59.2

65.8

79.9

+7.7

Within market rent

11.6

12.9

32.3

Market rent more

19.1

21.3

18.8

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

-

-

-

-

-

107

82.7

52.2

-

-

26

3.6

2.3

+3.6

+21.0

Increase throughtenant replacement

23

3.4

2.2

+3.6

+22.4

Decrease throughtenant replacements

3

0.1

0.1

-0.0

272

158.3

100.0

+32.8

Total (Rent revision +Tenant replacement)

Item■ Leased Area by Rent Level(Contracts renewed Dec. ‘20. period - Jun. ’22 period)

Item

Area (thousand m2)

Area ratio (%)

Less than market rent

156.9

56.0

-9.3

Market rent

67.3

24.0

+4.3

Market rent more

55.8

19.9

35

4. Appendix

Appraisal Value (as of June 30, 2020)

Appraisal Value and Unrealized Gains

Status of Change in Appraisal Value➢ Appraisal value of certain properties decreased mainly reflecting
revaluation of fixed property and city planning taxes in fiscal 2021

➢ Unrealized gains remained at a high level

Appraisal value

Unrealized gains

Ratio of unrealized
gains（Appraisal Value）（Direct Cap Rate）（number of property）（number of property）

Dec. ‘19 Jun. ‘20
538.6 billion yen

107.0 billion yen

24.8%(up 15.9 billion yen from (down 1.1 billion yen from (down 1.3% pt from 36th
36th period (Dec. ‘19))
36th period (Dec. ‘19))
period (Dec. ‘19))

Dec. ‘19 Jun. ‘20

Increase

50

23

Lowering

48

1

Same

6

16

Same

15

63

Decrease

7

26

Rising0

1Changes in unrealized gains and losses
Unrealized gains and losses（left axis）(100 mn. yen)（%）

Ratio of unrealized gains and losses（right axis）

1,200

107.0 billion yen

30

1,000

24.8%

800

20

600
400

10

200
0

0

-200
-400
Jun. '02

Jun. '04

Jun. '06

Jun. '08

Jun. '10

Jun. '12

Jun. '14

Jun. '16

Jun. '18-10
Jun. '20 (period)36

4. Appendix

Appraisal Value by Property (as of June 30, 2020)
Direct cap
DCF
DCF
ChangeChange(NCF Cap)
discount Change terminal
Book value
（%
（%
(%)
rate
(% pt)cap(mn yen)
pt）
pt）
(%)
(%)

Appraisalvalue（mn yen）

Change（mn
yen）

Kanematsu Bldg.

14,900

-300

3.4

0.0

3.2

0.0

3.6

0.0 14,589

Kanematsu Bldg. Annex

3,500

-70

3.8

0.0

3.6

0.0

4.0

0.0

2,419

+1,080JPR Ningyo-cho Bldg.

2,890

-

3.8

0.0

3.6

0.0

4.0

0.0

2,101

+788

Shin-Kojimachi Bldg.

4,240

+50

3.6

0.0

3.3

0.0

3.8

0.0

2,422

+1,817

Property name

Unrealized
gain or loss
(mn yen)+310

Direct cap
DCF
DCF
ChangeChangeChange(NCF Cap)
discount Change terminal
Book value
（mn
（%
（%
(%)
rate
(% pt)cap(mn yen)
yen）
pt）
pt）
(%)
(%)

Property nameAppraisalvalue（mn yen）

Unrealized
gain or loss
(mn yen)Tachikawa Business Center Bldg.

4,470

-

4.1

0.0

3.8

0.0

4.3

0.0

2,865

+1,604

Rise Arena Bldg.

9,510

-10

3.8

0.0

3.5

0.0

3.9

0.0

5,149

+4,360

Yume-ooka Office Tower

7,220

+180

4.0

0.0

3.7

0.0

4.2

0.0

5,279

+1,940Olinas Tower

40,000

-

3.6

0.0

3.3

0.0

3.8

0.0 26,482+13,517

JPR Crest Takebashi Bldg.

3,770

+30

3.8

0.0

3.6

0.0

4.0

0.0

3,209

+560

Tokyo Tatemono Yokohama Bldg.

9,630

+50

4.0

0.0

3.8

0.0

4.2

0.0

7,110

+2,519MS Shibaura Bldg.

15,000

+100

4.1

0.0

3.8

0.0

4.3

0.0 10,853+4,146

Omiya Prime East

9,640

+210

4.3

0.0

4.1

0.0

4.5

0.0

5,607

+4,032

Gotanda First Bldg.

4,150

+370

3.7

0.0

3.4

0.0

3.9

0.0

2,981

+1,168

Tanashi ASTA

11,000 -1,500

5.2

0.0

5.1

0.0

5.4

0.0

7,103

+3,896JPR Ichigaya Bldg.

4,820

-150

3.7

0.0

3.5

0.0

3.9

0.0

5,266

-446

Cupo-la Main Bldg.

2,970

-

4.9

0.0

4.7

0.0

5.1

0.0

1,625

+1,344

Oval Court Ohsaki Mark West

5,450

-

3.8

0.0

3.6

0.0

4.0

0.0

2,767

+2,682

JPR Musashikosugi Bldg.

5,540

-140

4.7

0.0

4.5

0.0

4.9

0.0

7,175

-1,635

Shinjuku Square Tower

14,700

-200

3.7

0.0

3.5

0.0

3.9

0.0 13,105+1,594

Musashiurawa Shopping Square

4,300

-50

4.9

0.0

4.8

0.0

5.1

0.0

3,527

+772

BYGS Shinjuku Bldg.

21,100

-500

3.6

0.0

3.4

0.0

3.8

0.0 15,297+5,802

Kawasaki Dice Bldg.

16,300

-

4.1

0.0

4.0

0.0

4.3

0.0 13,029+3,270

777

-13

4.5

0.0

4.3

0.0

4.7

0.0

575

+201

FUNDES Ueno

4,000

-

3.7

0.0

3.4

0.0

3.9

0.0

3,797

+202

Shinjuku Center Bldg.

17,600

+300

3.2

0.0

2.9

0.0

3.4

0.0 22,125-4,525

Niigata Ekinan Center Bldg.

2,270

-

5.6

0.0

5.6

0.0

5.8

0.0

1,594

+675

Minami Azabu Bldg.

3,050

+140

3.8

0.0

3.6

0.0

4.0

0.0

3,786

-736

Tokyo Tatemono Honmachi Bldg.

3,580

-40

4.4

0.0

4.1

0.0

4.6

0.0

4,359

-779

Shinagawa Canal Bldg.

2,380

+20

3.9

0.0

3.6

0.0

4.1

0.0

1,881

+498

JPR Hakata Bldg.

3,980

+60

4.3

0.0

4.2

0.0

4.5

0.0

2,901

+1,078Across Shinkawa Bldg. Annex

Rokubancho Bldg.

3,590

-60

3.9

-0.9

3.7

0.0

4.1

0.0

2,913

+676

JPR Naha Bldg.

2,150

+20

5.0

0.0

5.0

0.0

5.2

0.0

1,647

+502

JPR Harajuku Bldg.

11,100

-400

3.7

0.0

3.5

0.0

3.9

0.0

8,727

+2,372

Sompo Japan Sendai Bldg.

4,620

-

4.9

0.0

4.6

0.0

5.1

0.0

2,331

+2,288JPR Nihonbashi-horidome Bldg.

6,800

-40

4.2

0.0

4.0

0.0

4.4

0.0

4,858

+1,941

Sompo Japan Wakayama Bldg.

1,670

+10

6.2

0.0

6.0

0.0

6.5

0.0

1,315

+354

JPR Sendagaya Bldg.

11,900

-200

3.8

0.0

3.6

0.0

4.0

0.0 14,751-2,851

Tenjin 121 Bldg.

3,640

+240

4.2

0.0

3.8

0.0

4.4

0.0

2,019

+1,620JPR Dojima Bldg.

3,530

-

4.1

0.0

3.9

0.0

4.2

0.0

2,128

+1,401JPR Nagoya Fushimi Bldg.

3,390

-10

4.8

0.0

4.4

0.0

4.8

0.0

3,787

-397

20,100

+100

4.0

0.0

3.8

0.0

4.2

0.0 10,093+10,006

3,690

-80

3.0

0.0

2.7

0.0

3.1

0.0

3,685

+4

The Otemachi Tower (Land with Leasehold Interest)

51,800

-100

2.6

0.0

2.5

0.0

2.7

0.0 38,388+13,411

Science Plaza - Yonbancho Plaza

3,310

+10

3.8

0.0

3.4

0.0

4.0

0.0

2,761

+548

Yakuin Business Garden

Ginza Sanwa Bldg.

Shibadaimon Center Bldg.

6,170

-

3.5

0.0

3.2

0.0

3.7

0.0

4,154

+2,015

JPR Shinsaibashi Bldg.

4,670

-20

3.7

0.0

3.4

0.0

3.8

0.0

5,184

-514

Tokyo Square Garden

21,400

-300

2.6

0.0

2.4

0.0

2.8

0.0 18,457+2,942JPR Umeda Loft Bldg.

14,200

-200

3.8

0.0

3.5

0.0

4.0

0.0 12,477+1,722

Housing Design Center Kobe

7,660

+90

5.4

0.1

5.2

0.1

5.5

0.1

6,050

+1,609JPR Chayamachi Bldg.

8,320

-180

3.3

0.0

3.0

0.0

3.4

0.0

5,989

+2,330

6,420

+10

3.3

0.0

3.0

0.0

3.4

0.0

5,819

+600

13,800

-

3.4

0.0

3.2

0.0

3.6

0.0 11,437+2,362JPR Jingumae 432

4,240

+10

2.9

0.0

3.0

0.0

3.1

0.0

4,256

-16

Shinjuku Sanchome East Bldg.

2,700

-100

3.2

0.0

2.7

0.0

3.4

0.0

2,562

+137

520,017 -2,643

413,875 +106,141

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

3,240

-

2.9

0.0

2.5

0.0

3.1

0.0

3,284

-44

Central Tokyo

282,967 -1,663

242,776+40,190

JPR Ginza Namiki-dori Bldg.

11,000

-100

2.8

0.0

2.5

0.0

2.8

0.0 10,135+864Greater Tokyo

153,270 -1,050

109,216+44,053

FUNDES Suidoubashi

3,480

-90

3.5

0.0

3.3

0.0

3.7

0.0

3,199

+280

Other Cities

83,78061,881+21,898

Arca East

6,880

-

3.8

0.0

3.5

0.0

4.0

0.0

4,211

+2,668JPR Kojimachi Bldg.
JPR Shibuya Tower Records Bldg.

Total (except for new acquired buildings.)+70

JPR Chiba Bldg.

1,820

+10

5.2

0.0

5.0

0.0

5.4

0.0

2,194

-374

Properties to be accquired in Jun. '20 period

JPR Yokohama Nihon Odori Bldg.

2,340

-20

4.9

0.0

4.7

0.0

5.1

0.0

2,388

-48

Sencity Bldg.

14,600

-

4.3

0.0

4.0

0.0

4.5

0.0 13,967+632

Shinyokohama 2nd Center Bldg.

2,330

+20

4.5

0.0

4.3

0.0

4.7

0.0

1,416

+913

Minami Semba Bldg.

4,010

+40

4.1

0.0

3.9

0.0

4.3

0.0

+227

Kawaguchi Center Bldg.

9,940

+200

4.7

0.0

4.4

0.0

4.9

0.0

7,338

+2,601JPR Ueno East Bldg.

5,380

-

3.7

0.0

3.5

0.0

3.9

0.0

2,915

+2,464

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income
approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate thatserve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.

Total (as of 30 Jun, '20)

538,627 -2,603

3,782

431,625 +107,001

3. Changes for properties acquired in the Jun. ‘20 period are changes compared with figures which are based on the appraisal
values of these properties at acquisition (Minami Semba Bldg.: as of December 1, 2019, Sencity Bldg.: as of January 1,2020).

37

4. Appendix

ESG of JPR■ Role of JPR in Society• Role of returning real estate rental revenues and other earnings toinvestors(Creating an environment in which a wide range of investors canparticipate in real estate investment and enjoy stable distributions)• Role of supplying funds for long-term stable investment to the real estate
investment market(Supporting activation and stabilization of the real estate investment
market through the integration of real estate and finance and transparent
information disclosure)• Role of forming, regenerating and utilizing real estate stock(Promoting improvements in real estate stock through buildings withimproved earthquake resistance and lower environmental impact and thecreation of comfortable, convenient spaces)■ Value Creation Process of JPR■ Corporate philosophy of TRIM
TRIM provides value to all stakeholders, including customers,
employees and society, by rendering professional real estate investment
management services with sincerity and a sense of responsibility.

■ Sustainability Policy
Based on its corporate philosophy of working with integrity andcommitment to responsibilities, TRIM is resolved to contribute to thesustainable development of society and the investment managementbusiness through discussion and cooperation with its stakeholders(including investors and tenants), while aiming to maximize value for JPR's
unitholders.

1.Initiatives on Behalf of Tenants
We will work with integrity and responsibility in responding to tenants,
and endeavor to provide them with new and distinct values as well as
enhancing their satisfaction.
2.Initiatives on Behalf of the Environment
Recognizing the importance of addressing environmental issues, we will
aim to reduce environmental load through managing the assets owned by
JPR.
・We will promote energy saving and reduction of greenhouse gas
emissions.
・We will endeavor for effective use of water resources and work on the"3Rs" (reuse, reduce and recycle) of waste.
・We will strive to proactively disclose information on environmental issues.
3.Initiatives on Behalf of Local Communities
We will work to coordinate with local communities through managing theassets owned by JPR, in an effort to contribute to enhancing the brandvalue of the entire area in which such assets are located.
4.Initiatives on Behalf of the Employees
We will respect each one of our employees to realize an employeefriendly workplace, helping them to enhance abilities in their specialties.
5.Initiatives on Behalf of the Society
We will abide by laws and regulations as well as the rules of society, andconduct business operations with a focus on transparency and objectivity
while holding on to our high moral standards.

38

4. Appendix

Environment■ Acquisition of environmental certification■ CO2 Emission Data
Third-party assurance has been received for some of the environmental
data to ensure the reliability of the data.

Item

Units

FY2017FY2018FY 2019

ChangeElectricity
Use

MWh/m2

0.142

0.145

0.141

-2.7%

Gas UseMWh/m2

0.027

0.028

0.026

-6.3%

Water Use

m3/m2

0.798

0.807

0.790

-2.1%

CO2
Emission

tCO2/m2

Focus on improving rate of acquisition of environmental certification,
aiming for portfolio with low environmental impact and high sustainability
（％）

Total
area
延床面積

（％）
80

54.4

53.4

60

（thousand ㎡）

Ratio
取得比率

34.0

40

0.079

0.076

200

20

Dec.
'18
2018.12

-2.8%

600
400

0

0.084

60.1

Jun.
‘19
2019.6Dec.
‘19
2019.120Jun.
‘20 （period）
2020.6(DBJ Green Building Certification)■ Construction Works for Reducing Environmental Load

Ranking

Systematically implement refurbishment to highly energy-efficientfacilities★★★★★

Tokyo Square Garden, Olinas Tower(Change in implement refurbishment to highly energy-efficient facilities)★★★★

Oval Court Ohsaki Mark West, Shinjuku Center
Bldg., JPR Sendagaya Bldg.

★★★

Kanematsu Bldg., BYGS Shinjuku Bldg., Shinagawa
Canal Bldg., Omiya Prime East, Rise Arena Bldg.,
Yume-ooka Office Tower, Kawasaki Dice Bldg.

★★

JPR Crest Takebashi Bldg., Shinjuku Square Tower,
Minami Azabu Bldg., JPR Chiba Bldg.

（百万円）（millionyen）

400

LED construction

Work on air condition units
368

339
310
300

258
211

200

256
227
185

130

243

182
123

105

125

152

(CASBEE for Building Certification)
Ranking

130

100

0
Jun. '17 Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20（period）

Property name

Property name★★★★★

JPR Kojimachi Bldg., FUNDES Ueno, JPR
Musashikosugi Bldg., Musashiurawa Shopping
Square, Sompo Japan Sendai Bldg., JPR Umeda
Loft Bldg., Housing Design Center Kobe★★★★

Kawaguchi Center Bldg., JPR Shibuya Tower
Records Bldg., Yakuin Business Garden（forecast）
1. Properties with environmental certification are as of the end of Jun. 2020.

39

4. Appendix

Society■ Local Community Initiatives■ Improvement of tenant satisfaction (disaster response)

Example: Tokyo Square Garden
Community consideration• Has space to house stranded commuters• Has disaster prevention stockpile
warehouse• Provides emergency power source during
power outage• Has comprehensive primary healthcare
facility for foreigners• Has multilingual childcare support facility

Installation of emergency boxes
containing relief supplies inside elevators
in case people are trapped inside during
a disaster or power outage

Provision of simple emergency
generators, given the importance of
charging smartphones in the event ofdisaster[Elevator emergency box]

[Emergency magnesium
air battery]

Major achievements• Good Design Award• Certified as an "urban oasis"
under SEGES in 2016
• Selected as leading projects of house andbuilding working on carbon dioxide
reduction
Tokyo Square Garden■ Initiatives for TRIM employees■ Disaster initiatives
Seeking to further strengthen resilience in light of the mega-disasters inrecent years(Actions currently being taken)• Continuously conducting monitoring using
portfolio hazard map• Assessing latest risks in areas in which
properties are located and seeking tostrengthen facilities accordingly• Conducting regular onsite assessments ofdisaster-prevention equipment at each
property• Sharing disaster risks with site managers,
sharing current issues to be addressed, etc.
and issuing instructions on actions to be takenin the future• The Tokyo Tatemono Group, the mainsponsor, has published its healthmanagement declaration and is implementing
a range of initiatives.
• TRIM was recognized as a Blue-Chip Healthoriented Company and awarded the Silver
Certificate for Blue Chip Health-oriented
Companies.
• TRIM checks the health condition of its
employees every day to fight the spread of
COVID-19.

Portfolio hazard map(Tokyo area)• TRIM conducts an employee satisfaction
survey regularly and endeavors to improve
the work environment, employee benefits
and treatment.

40

4. Appendix

Governance■ JPR’s Corporate Governance■ TRIM’s Corporate GovernanceCriteria for appointing investment corporation officers andRemuneration etc.
•••

Decision-making process for property acquisitions

None of the grounds for disqualification stipulated in the laws concerning investment trusts
and investment corporations
Officers are appointed by means of a resolution of the General Meeting of Unitholders.
The remuneration for executive officers and supervising officers is stipulated in theinvestment corporation regulations as the amount decided by the Board of Directors (up toa maximum of 500,000 yen per month for each executive officer and 400,000 yen permonth for each supervising officer).

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

Remuneration（Jun ’20）

Share

Decision-making based on stringent processes(Interested parties: Sponsors companies and their parent company es,
subsidiaries and affiliates)

Total acquisition price×0.05％

219 million yen

27.5%

Total revenue×1.2%

196 million yen

24.6%

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

294 million yen

36.9%

Property value×0.5%

88 million yen

11.0%Management fees 4/5(Acquisition/Merger fee)

Acquisition

Management fee 1

Calculation of Compensation’

Concludeagreement

Item

TRIM s Board of
Directors

Employing a management fee system that matches unitholder’sinterests and benefits of the asset management company

Decision making
on acquisition
over certain
amountAsset Management Fee

Investment Subcommittee• Supervising officers may be directors of corporations other than those indicated above, buthave no conflict of interest with JPR at those and the above positions.
• Executive Officer Yoshihiro Jozaki does not receive remuneration from JPR.

’

Final decision on
acquisition

13,300－Compliance Committee
JPR s Board of
Directors

Representative Partner ofNobuhisa Kusanagi OfficeDue diligence
subcommittee

Ernst & Young
ShinNihon LLC

4,200

Prior review /approval oftransaction withrelated parties

Nobuhisa Kusanagi Accountants' Co.

－

Due diligence

Independent
Auditor（thousand yen）

Group Representative Partner of
Gyosei Certified Public Tax &Supervising Officer

Investment subcommittee

Partner Attorney, Spring
Partners

Decision on
acquisition policy

Masato Denawa

Compliance subcommittee

President and CEO
Tokyo Realty Investment
Management, Inc.

Review,screening

Yoshihiro Jozaki

Fee (Jun. ‘19)

Invest management
department

Executive Officer

Other Current
Assignments

Name

Proposal,planning

Position

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

• Acquisition of properties or assets from interested parties• Sale of properties or assets to interested parties• Consignment of property management to interested parties• Brokerage or agency by interested parties for transactions• Placement of orders for construction works (costing over 10 million yen)
to interested parties• Leasing of properties to interested parties(Sale fee)41

4. Appendix

Unitholders (as of June 30, 2020)■ Number of Units by Unitholder Type■ Top Unitholders(958,250 units in total)

Individuals
35,272

Rank

Name

Number of
Owned
Units

Share(%)

1

Japan Trustee Services Bank, Ltd. (Trust Account)

212,163

22.1

2

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

136,919

14.3

3

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

47,342

4.9

4Tokyo Tatemono Co., Ltd.

29,300

3.1

5

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

25,773

2.7

6

Kawasaki Gakuen

25,000

2.6

7

Meiji Yasuda Life Insurance Company

24,000

2.5

8STATE STREET BANK WEST CLIENT－TREATY
50523414,0091.5

9SSBTC CLIENT OMNIBUS ACCOUNT

13,922

1.5

10Japan Securities Finance Co., Ltd.

12,3001.3

540,728

56.4

4%

Securities

companies

Foreign

46,097

investors

5%

197,881
21%

Other domestic
corporation

Financial
institutions
595,285

Of which, investment
Trusts incorporating
JPR units
314,92033%

62%

83,715
9%■ Number of Unitholders by Unitholder Type(11,085 unitholders in total)

Other

Foreign

Securities

investors

companies

429

24

4%

0%

domestic
corporation
235
2%

Financial

Individuals

institutons

10,210

187

92%

2%

Total

42

4. Appendix

Investment Unit Price and Distribution per Unit

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

JPR
(yen)

600,000
400,000

200,000
0(period)
Jun. '02 Jun. '03 Jun. '04 Jun. '05 Jun. '06 Jun. '07 Jun. '08 Jun. '09 Jun. '10 Jun. '11 Jun. '12 Jun. '13 Jun. '14 Jun. '15 Jun. '16 Jun. '17 Jun. '18 Jun. '19 Jun. '20■Changes in JPR Dividend Yield(%)

10y JGB yield
10年国債利回り

JPR

10.0
8.0
6.0
4.0
2.0
0.0
0

(2.0)
(period)
Jun. '02 Jun. '03 Jun. '04 Jun. '05 Jun. '06 Jun. '07 Jun. '08 Jun. '09 Jun. '10 Jun. '11 Jun. '12 Jun. '13 Jun. '14 Jun. '15 Jun. '16 Jun. '17 Jun. '18 Jun. '19 Jun. '20■Changes in cash distribution per unit
Cash distribution per unit (yen)6,912 6,873

5,738 6,081

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

7,122 7,092

6,933 6,770

5,680 5,611 5,876

6,430 6,093 6,031 6,006 6,150 6,351 6,419 6,588 6,756

7,048 7,213 7,223 7,245 7,326 7,380

7,493 7,595

3,731
2,545

0

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

(Jun. ‘02)

(Dec. ’02)

(Jun ’03)(Jun ’03)(Jun. ’04)

(Dec. ’04)

(Jun. ’05)

(Dec. ’05)

(Jun. ’06)

10th

11th

(Dec. ’06) (Jun. ’07)

12th

13th

(Dec. ’07) (Jun. ’08)

14th

15th

16th

17th

(Dec. ’08)

(Jun. ’09)

(Dec. ’09)

(Jun. ’10)

18th

19th

20th

(Dec. ’10) (Jun. ’11) (Dec. ’11)

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

21st

22nd

(Jun. ’12) (Dec. ’12)

23rd

24th

(Jun. ’13)

(Dec. ’13)

25th

26th

(Jun. ’14) (Dec. ’14)

27th

28th

29th

30th

31st

32nd

33rd

34th

35th

36th

37th

(Jun. ’15)

(Dec. ’15)

(Jun. ’16)

(Dec. ‘16)

(Jun. ’17)

(Dec. ’17)

(Jun. ’18)

(Dec. ’18)

(Jun. ’19)

(Dec. ’19)

(Jun.’20)（period）

43

4. Appendix

Asset Manager■Sponsors■Summary of Asset Manager（as of June 30, 2020）（as of June 30, 2020）

No. ofShareholding Shareholding
seconded staff
ratio
ratio
（Before change） (after change) from sponsors

Name

Name

Tokyo Realty Investment Management, Inc. (TRIM)

Address

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

Date of Foundation

April 28, 2000

Tokyo Tatemono

52%

75%

9名

Paid-in Capital

350 million yen

Yasuda Real Estate

18%

10%

－

Business Description

Asset management for investment corporation

Taisei Corporation

10%

10%

－

President and CEO

Yoshihiro Jozaki

Directors

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

Meiji Yasuda Life Insurance

10%

5%

－

Number of Officers

39

Sompo Japan Nipponkoa Insurance

10%

－

1名

1. Shareholding ratios changed with effect April 28, 2020.

■Organization Chart■Sponsors Support

Shareholder’s Meeting
Auditorsno.

Summary of sponsors support

Board of Directors
President & CEO
Investment Committee

Financial Division2

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

3

Supply of properties and provision on information on property acquisition

4

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

Research Grp.

Financial Grp.

Planning Grp.

Investment Grp.

IR Grp.

General Administration Grp.

Asset Management 1Grp.

Fund Management Grp.

Asset Management 2Grp.

Personnel support through dispatching personnel to TRIM and othermeasures

Compliance Committee
Compliance Office

Investment Management Division1

Asset Management 3Grp.
Asset Engineering Grp.

44

4. Appendix

Office Property Leasing Market■ Changes in New Supply/Demand Area, Leasable Floor Area and Vacancy Rate

■ Changes in the average rent of the 23 wards of Tokyo( Tokyo CBDs )(yen/tsubo)

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,000New supply

Net increase inleasable floor area

New demand

Vacancy rate（right axis）（Vacancy rate: right axis, Others: left axis, New supply and new demand indicate actual number）(thousand tsubo)（forecast）

300
300

35,0009(%)

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

2002-2019
Average of new supply

6

5.47
200
200

2020-2024
Average of new supply

4.03

25,0001．Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and
NLI Research Institute.
2．Please refer to glossary for definition of building classes.

■ Comparison of employed population and occupied area(’05=100pt)

3.61
3.12

(pt)

3
100
100

140

Employed population
FemaleMale
Occupied area

135
130

1.88
1.55

125
120
115
110

00

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 （year）

105
100'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

1. Actual results of the vacancy rate, leasable floor area and occupied area through December 2019 are based on the Office Report (Tokyo CBDs)
by Miki Shoji Co., Ltd. New supply, new demand and loss areas as well as the leasable floor area and vacancy rate in 2020 and thereafter havebeen estimated based on surveys and simulations conducted by market research agency and TRIM.
As an assumption for the simulation, the new supply area uses an estimate obtained by applying a certain multiplying factor to the average ofthe past results. The lost area is based on the average of the past results as assumption.

(year)

1. The employed population was prepared by TRIM based on the Labor Force Survey,
the Ministry of Internal Affairs and Communications.

45

4. Appendix

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

Nagoya (around Nagoya Sta.)

Osaka (Midosuji)

Osaka (Umeda)

Retail property (Ginza)

Retail property (Osaka)

Economy hotel for lodging (Tokyo)

Economy hotel for lodging (Osaka)

Fukuoka (Tenjin)
(%)

(%)

8.0

7.5

7.0

6.5
6.0
5.5
5.0
4.5
4.0
3.5

3.0

1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute.

Apr '20

Apr '19

Apr '18

Apr '17

Apr '16

Apr '15

Apr '14

Apr '13

Apr '12

Apr '11

Apr '10

Apr '09

Apr '08

Apr '07

Apr '06

Apr '05

Apr '20

Apr '19

Apr '18

Apr '17

Apr '16

Apr '15

Apr '14

Apr '13

Apr '12

Apr '11

Apr '10

Apr '09

Apr '08

Apr '07

Apr '060
2.0
Apr '05

0
2.5

46

4. Appendix

Results of Survey on Working from Home

■ Did you implement working from home/teleworking to prevent the spread of COVID-19?*1（2,400 enterprises with capital of
100 million yen or more)（All 14,356 enterprises）
Implemented after
COVID-19 outbreak
but now stopped

26.8%

Still implementing

31.0%

69% not
currently
implementing
telework

Not implemented at
all since outbreak

Implemented after
COVID-19 outbreak
but now stopped

29.7%

17.3%

47.6%

Deteriorated
slightly

Very unsatisfied

5.9%

9.9%

30% were
not satisfied

23.8%

slightly

32.7%

Definitely no
Probably no

18.9%

Fairly unsatisfied

40.1%

Fairly satisfied

5.4%

Definitely yes

27.0%

24% do notintend to continue
implementing
telework
Probably yes

48.0%■ Issues with telework*2

26.2%■ Do you intend to continue implementing telework
after the COVID-19 crisis comes to an end?*2

Very satisfied

22.3%

Still implementing

74% not
currently
implementing
telework

15.1%■ Were you satisfied when employees
worked from home?*2

50% saw
deteriorationin efficiency Improved

26.2%

Not implemented at
all since outbreak

Yes

No

55.2%

45% not
currently
implementing
telework

Implemented after
COVID-19 outbreak
but now stopped

Not implemented at
all since outbreak

42.2%■ Did efficiency improve whenemployees worked from home?*2

Still implementing(11,956 enterprises with capitalless than 100 million yen)

47.7%

■ Ratio of employees who can work from home by industry*3
(%)

41
39
36
31
30
27
25
24

Development of physical environment, for example, room, desk, lighting
Development of communication environment including Wi-Fi
Sharing of materials and data which can only be accessed at workplace online
Improvement of usability of tools for telework such as online meetings
Discontinuation of practice of affixing of seals or digitalization of payment procedures
Information security measures
Programs or systems that help employees to separate their work and private lives
Programs or systems which enable employees to contact/communicate with their bosses and colleagues properly

18
13

Programs or systems to prevent employees from overworking (working too much)
Development of environment which enables contact/communication with customers/suppliers online

7

Programs or systems to alleviate the burden of housework/child rearing, cooperation of family members
Other
Did not sense any issues in particular

1
10

(%)
Finance and insurance
Information and communications
Education, learning support
Scientific research, etc.
Real estate and goods rental and leasing
Electricity and gas
Public services
Compound services
Construction
Services
Wholesale and retail trade
Manufacturing
Living-related and personal services and amusement services
Medical, health care and welfare
Transport and postal activities
Accommodations, eating and drinking services
Other

1 Prepared by TRIM based on “6th COVID-19 Survey” published by Tokyo Shoko Research, Ltd. on July 14, 2020.
2. Prepared by TRIM based on “Second Workers Awareness Survey” published by Japan Productivity Center on July 21, 2020.
3. Prepared by TRIM based on report titled “The potential for home-based work in Japan” published by Mizuho Research Institute, Ltd. on May 22, 2020.

7
10

45
44
38
33
30
29
23
22
21
20

63
59
53

84
77

47

4. Appendix

Overview of JPR■Overview of JPR■Characteristics of JPR(as of the end of June 2020)

Name

Japan Prime Realty Investment Corporation(abbreviated as JPR)

Securities code

8955

Listing dateJune 14, 2002 (18 years since listing)End of fiscal
periodJune and December

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

Asset Manager

Sponsors(shareholding
ratio)(Ratio by area)
Tokyo 80～90% / Other cities 10～20%

Tokyo Realty Investment Management Inc.
(abbreviated as TRIM)

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

1

A track record of stable management for over
18 years
Since listing, JPR has steadily expanded its asset size while
enhancing the quality of its portfolio.

2
3
4

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

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

Continuous internal growth through highoccupancy rate and upward revision of rents

Establishment of a financial base that is
stable over the long termWith a credit rating of AA- (Stable), JPR has established afinancial base centering on long-term, fixed-interest rate debts
with a focus on stability.

1.

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

65 properties 457.1 bn. yen

A portfolio focused on office properties in
Tokyo

The average occupancy rate of the entire portfolio has stayed at
97% or higher since the 26th fiscal period ended December
2014, and upward revision of rents continued to surpass
downward revision by value for 12 straight fiscal periods.

5

Asset size
(After the asset replacement)

Ratio by asset(After the asset replacement)(Area)

Tokyo(Asset class)

Office84.5 %
77.1 %(planned) acquisition price and ratio
of properties from sponsor pipelines(After the asset replacement)

335.3 bn. yen・ 73.4 %Upward revision of rents

12 consecutive fiscal
periods(Dec. ’14 ～ Jun. ’20)

LTV

39.5 %
Ratio of long-term, fixed interest rate debts

100.0%

Credit rating

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

48

4. Appendix

Portfolio Map

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

Shinjuku

Ichigaya

A-12

A-14

A- 4

A-17

A-24

A-27

A-4

SaitamaMusashiurawa
Prefecture

A-5

A-9

B-5

A-20
A-23

B-6

A-1

A-26

A-2

Shibuya Ward

A-13

A-22

B-9

TanashiB-8

Tachikawa

A-5

Harajuku

B-7

B-1

Chiyoda WardTokyo

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-6

Minato Ward

Kinshicho

B-14

Chiba

B-4

Kawasaki

A-25

B-6

B-5

Kanagawa Shin-Yokohama
Prefecture
Yokohama
B-12

Hamamatsucho

A-15

B-1

Musashikosugi

Chuo Ward

ShibuyaB-11

B-2

Shinbashi
A-1

B-7

Shinagawa

A-3

A-18

Chiba
Prefecture

B-3

Kawaguchi

A-3

A-21

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

B-13

Omiya

A-7

Shinjuku Ward
A-11

■Greater Tokyo

B-3

TamachiB-10

Kamioka

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

Tokyo Tatemono Yokohama Bldg.

B-13

Omiya Prime East

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

Acquire in 37th
A-6

B-14

Sencity Bldg.

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

J PR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

■Other Cities
GotandaA-7

Shinagawa

C-4

A-16
A-10

OhsakiShinagawa Ward

Tokyo Tatemono Honmachi Bldg.

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-1

JPR Umeda Loft Bldg.

C-5

JPR Chayamachi Bldg.

Acquire in 37th

C-22
A-1

Kanematsu Bldg.

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

A-2

Kanematsu Bldg. Annex

A-14

Shinjuku Center Bldg.

A-25

Shibadaimon Center Bldg.

A-3

JPR Ningyo-cho Bldg.

A-15

Minami Azabu Bldg.

A-26

A-4

Shin-Kojimachi Bldg.

A-16

Shinagawa Canal Bldg.

A-27

A-5

JPR Crest Takebashi Bldg.

A-17

Rokubancho Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-6

MS Shibaura Bldg.

A-18

JPR Harajuku Bldg.

A-3

JPR Jingumae 432

A-7

Gotanda First Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-9

JPR Ichigaya Bldg.

A-21

JPR Sendagaya Bldg.

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-10

Oval Court Ohsaki Mark West

A-22

Ginza Sanwa Bldg.

A-6

JPR Ginza Namiki-dori Bldg.

A-11

Shinjuku Square Tower

A-23

The Otemachi Tower

A-7

FUNDES Suidobashi

A-12

BYGS Shinjuku Bldg.

(Land with Leasehold Interest)

SendaiMinami Semba Bldg.
NiigataC-7

JPR Hakata Bldg.

Tokyo Square Garden

C-14

Tenjin 121 Bldg.

JPR Kojimachi Bldg.

C-20

Yakuin Business Garden
Kobe
Fukuoka

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

49

4. Appendix

Portfolio List（Central Tokyo）
A-1
Kanematsu Bldg.

A-2
Kanematsu Bldg. Annex

A-3
JPR Ningyo-cho Bldg.

A-4
Shin-Kojimachi Bldg.

A-5
JPR Crest Takebashi Bldg.

The exterior of a building

Acquisition Price (million yen)

16,276

2,874

2,100

2,420

4,000

Total Floor Space*

14,995㎡

4,351㎡

4,117㎡

5,152㎡

4,790㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

100.0％

Kyobashi, Chuo-ku

Kyobashi, Chuo-ku

Nihonbashiningyocho, Chuo-ku

Kojimachi, Chiyoda-ku

Kandanishikicho, Chiyoda-ku

Acquisition Date

2001.122001.122001.11‘01.11/’02.11/’04.11

2002.6

Completed1993.2

1993.2

1989.12

1984.10

1999.9Address

A-6
MS Shibaura Bldg.

A-7
Gotanda First Bldg.

A-９
JPR Ichigaya Bldg.

A-10
Oval Court Ohsaki Mark West

A-11
Shinjuku Square Tower

The exterior of a building

Acquisition Price (million yen)

11,200

2,920

5,100

3,500

14,96631,020㎡

10,553㎡

5,888㎡

28,575㎡

78,796㎡(entire redevelopment area)

100.0％

100.0％

100.0％

100.0％

100.0％

Shibaura, Minato-ku

Nishigotanda, Shinagawa-ku

Kudanminami, Chiyoda-ku

Higashigotanda, Shinagawa-ku

Nishishinjuku, Shinjuku-ku

Acquisition Date

2003.3

2003.7

2004.5

2004.6‘04.7/’08.9/’15.3/’15.10

Completed

1988.2

1989.7

1989.3

2001.6

1994.10

Total Floor Space*

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

50

4. Appendix

Portfolio List（Central Tokyo）
A-12
BYGS Shinjuku Bldg.

A-13
Across Shinkawa Bldg. Annex

A-14
Shinjuku Center Bldg.

A-15
Minami Azabu Bldg.

A-16
Shinagawa Canal Bldg.

The exterior of a building

Acquisition Price (million yen)

15,121710

21,000

3,760

2,041

Total Floor Space*

25,733㎡

5,535㎡

176,607㎡

4,570㎡

5,216㎡

Period-end occupancy rate

99.6％

100.0％

98.0％

100.0％

100.0％

Shinjuku, Shinjuku-ku

Shinkawa, Chuo-ku

Nishishinjuku, Shinjuku-ku

Minamiazabu, Minato-ku

Konan, Minato-ku‘04.11/’05.4/’10.7

2004.112008.32008.7‘08.12/’19.3

1985.4

1994.6

1979.10

1992.6

2008.7Address
Acquisition Date
Completed

A-17
Rokubancho Bldg.

A-18
JPR Harajuku Bldg.

A-20
JPR Nihonbashi-horidome Bldg.

A-21
JPR Sendagaya Bldg.

A-22
Ginza Sanwa Bldg.

The exterior of a building

Acquisition Price (million yen)

2,800

8,400

5,100

15,0503,400

Total Floor Space*

4,205㎡

6,466㎡

7,190㎡

7,683㎡

8,851㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

100.0％

Rokubancho, Chiyoda-ku

Jingumae, Shibuya-ku

Nihonbashihoridomecho, Chuo-ku

Sendagaya, Shibuya-ku

Ginza, Chuo-ku

Acquisition Date

2009.122009.122010.32010.52011.8Completed1991.10

1989.3

2002.62009.5

1982.10Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

51

4. Appendix

Portfolio List（Central Tokyo）
A-23 The Otemachi Tower(Land with Leasehold Interest)

A-24
Science Plaza - Yonbancho Plaza

A-25
Shibadaimon Center Bldg.

A-26
Tokyo Square Garden

A-27
JPR Kojimachi Bldg.

36,000

2,660

4,220

18,4005,750

11,034㎡ (ground area)

24,560㎡

11,419㎡

112,645㎡

4,438㎡

100.0％

100.0％

100.0％

99.3％

100.0％

Otemachi, Chiyoda-ku

Yonbancho, Chiyoda-ku

Shibadaimon, Minato-ku

Kyobashi, Chuo-ku

Kojimachi, Chiyoda-ku

2012.32013.12’13.12/’14.7‘17.2/’17.4

2019.62014.4 (reference)

1995.2

1993.72013.2

1999.2The exterior of a building

Acquisition Price (million yen)
Total Floor Space*
Period-end occupancy rate
Address
Acquisition Date
Completed

A-1
JPR Shibuya Tower Records Bldg.

A-3
JPR Jingumae 432

A-4
Shinjuku Sanchome East Bldg.

A-5
Yurakucho Ekimae Building (Yurakucho Itocia)

The exterior of a building

Acquisition Price (million yen)

12,000

4,275

2,740

3,400

Total Floor Space*

8,449㎡

1,066㎡

24,617㎡

71,957㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

Jinnan, Shibuya-ku

Jingumae, Shibuya-ku

Shinjuku, Shinjuku-ku

Yurakucho, Chiyoda-ku

Acquisition Date

2003.6

2006.3‘07.3/’08.4

2008.8Completed1992.2

2006.2

2007.1

2007.10Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

52

4. Appendix

Portfolio List（Central Tokyo, Greater Tokyo）
A-6
JPR Ginza Namiki-dori Bldg.

A-7
FUNDES Suidoubashi

The exterior of a building

Acquisition Price (million yen)

10,1003,250

Total Floor Space*

1,821㎡

1,477㎡

Period-end occupancy rate

100.0％

100.0％

Ginza, Chuo-ku

Kandamisakicho, Chiyoda-ku

Acquisition Date

2016.122016.12Completed2008.62015.7Address

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.

The exterior of a building

Acquisition Price (million yen)

5,880

2,350

2,927

1,490

8,100

Total Floor Space*

34,281㎡

9,072㎡

9,146㎡

7,781㎡

28,420㎡

Period-end occupancy rate

100.0％

97.6％

100.0％

100.0％

100.0％

Kinshi, Sumida-ku

Chiba, Chiba

Yokohama, Kanagawa

Yokohama, Kanagawa

Kawaguchi, Saitama

Acquisition Date

2001.112001.122001.11‘02.9/’13.3

2004.2Completed1997.3

1991.1

1989.10

1991.8

1994.2

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

53

4. Appendix

Portfolio List（Greater Tokyo）
B-7
JPR Ueno East Bldg.

B-8
Tachikawa Business Center Bldg.

B-9
Rise Arena Bldg.

B-10
Yume-ooka Office Tower

B-11
Olinas Tower

The exterior of a building

Acquisition Price (million yen)

3,250

3,188

5,831

6,510

31,300Total Floor Space*

8,490㎡

14,706㎡

91,280㎡

185,974㎡

257,842㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

99.1％

100.0％

Matsugaya, Taito-ku

Tachikawa, Tokyo

Higashiikebukuro, Toshima-ku

Yokohama, Kanagawa

Taihei, Sumida-ku

Acquisition Date

2004.3‘05.9/’07.2

2007.32007.72009.6

Completed1992.10

1994.122007.1

1997.32006.2

Address

B-12
Tokyo Tatemono Yokohama Bldg.

B-13
Omiya Prime East

B-14
Sencity Bldg.

The exterior of a building

Acquisition Price (million yen)

7,000

6,090

13,870Total Floor Space*

8,772㎡

9,203㎡

158,663㎡

Period-end occupancy rate

100.0％

100.0％

99.7％

Yokohama, Kanagawa

Saitama, Saitama

Chiba, Chiba

Acquisition Date

2010.122013.32020.3Completed

1981.52009.2

1993.4Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

54

4. Appendix

Portfolio List（Greater Tokyo）
B-1
Tanashi ASTA

B-3
Cupo-la Main Bldg.

B-4
JPR Musashikosugi Bldg.

B-5
Musashiurawa Shopping Square

B-6
Kawasaki Dice Bldg.

The exterior of a building

Acquisition Price (million yen)

10,200

2,100

7,254

4,335

15,080Total Floor Space*

80,675㎡

48,321㎡

18,394㎡

28,930㎡

36,902㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

100.0％

Nishitokyo, Tokyo

Kawaguchi, Saitama

Kawasaki, Kanagawa

Saitama, Saitama

Kawasaki, Kanagawa

Acquisition Date

2001.112006.32006.92007.32007.4Completed1995.2

2006.1

1983.32005.10

2003.8Address

B-7
FUNDES Ueno

The exterior of a building

Acquisition Price (million yen)

3,800

Total Floor Space*

2,235㎡

Period-end occupancy rate

100.0％

Address

Ueno, Taito-ku

Acquisition Date

2019.6

Completed2017.7* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

55

4. Appendix

Portfolio List（Other Cities）
C-1
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.

2,140

4,150

2,900

1,560

3,150

Total Floor Space*

19,950㎡

14,619㎡

9,828㎡

5,780㎡

10,783㎡

Period-end occupancy rate

100.0％

94.3％

97.9％

97.9％

99.7％

Niigata, Niigata

Osaka, Osaka

Fukuoka, Fukuoka

Naha, Okinawa

Sendai, Miyagi

Acquisition Date

2001.112001.112001.112001.11

2002.6

Completed1996.3

1970.2

1985.6

1991.10

1997.12The exterior of a building

Acquisition Price (million yen)

Address

C-13
Sompo Japan Wakayama Bldg.

C-14
Tenjin 121 Bldg.

C-17
JPR Dojima Bldg.

C-19
JPR Nagoya Fushimi Bldg.

C-20
Yakuin Business Garden

The exterior of a building

Acquisition Price (million yen)

1,670

2,810

2,140

4,137

10,996

Total Floor Space*

6,715㎡

8,690㎡

5,696㎡

10,201㎡

22,286㎡

Period-end occupancy rate

98.3％

100.0％

92.1％

99.5％

99.9％

Wakayama, Wakayama

Fukuoka, Fukuoka

Osaka, Osaka

Nagoya, Aichi

Fukuoka, Fukuoka

Acquisition Date

2002.6

2002.6

2004.1

2005.32012.8Completed1996.7

2000.7

1993.10

1991.32009.1

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

56

4. Appendix

Portfolio List（Other Cities）
C-21
JPR Shinsaibashi Bldg.

C-22
Minami Semba Bldg.

C-1
JPR Umeda Loft Bldg.

C-4
Housing Design Center Kobe

C-5
JPR Chayamachi Bldg.

The exterior of a building

Acquisition Price (million yen)

5,430

3,750

13,000

7,220

6,000

Total Floor Space*

5,303㎡

7,738㎡

17,897㎡

33,877㎡

3,219㎡

Period-end occupancy rate

100.0％

99.9％

100.0％

100.0％

100.0％

Osaka, Osaka

Osaka, Osaka

Osaka, Osaka

Kobe, Hyogo

Osaka, Osaka

Acquisition Date

2005.52020.1‘03.5/’03.7

2005.92006.8Completed2003.2

1986.91990.4

1994.6

1994.6

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

57

4. Appendix

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

8955

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

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

Information of initiatives on sustainability
・Sustainability policy & management
・Initiatives on behalf of tenants
・Initiatives on behalf of the environment
・Local community initiatives
・Safety and security initiatives
・Initiatives aimed at employees
・Initiatives aimed at unitholders/investors
・International Initiatives
・Green Finance
Extensive ESG related information
Regularly announce updated data58

Glossary
Term

Meaning

Acquisition price

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

Asset size

The total acquisition prices of the owned properties.

Investment ratio

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

Occupancy rate

Total leased space / total leasable space

Average unit rent

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

Term

Meaning

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

Afterdepreciation
yield(Rental revenue - real estate - expenses related to rent business) / book value (or acquisition
price, depending on the case)Number oftenants

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

Ratio of longterm, fixedinterest ratedebts

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

Averagematurity

Weighted average calculated by dividing the remaining periods to the repayment dates andredemption dates of borrowings and investment corporation bonds at the end of each fiscal
period by the balance of respective borrowings and investment corporation bonds at the end ofeach fiscal period
For borrowings with scheduled repayment in installments, the weighted average of theremaining period to the scheduled repayment dates of each installment payment in accordancewith the relevant repayment amount

Average debt
cost

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

Average rent-free
periodThe average of the rent-free periods agreed upon in new lease contracts becoming effectivein each fiscal period.

Revised amount ofmonthly rent

Revised amount of monthly rent indicates the sum total (including common charges) ofmonthly rent after revision minus monthly rent before revision upon contract renewal withrent revision in each fiscal period. For the revised amount of monthly rent for the 36th fiscal
period (Jun. ‘20), the amount of increase is an estimate based on consents regarding rents
becoming effective in the fiscal period, and the amount of decrease is an estimate assumed
for the rents becoming effective in the fiscal period.

Change amount inmonthly rent upontenant replacement

Change amount in monthly rent upon tenant replacement indicates the sum total (includingcommon charges) of monthly rent after tenant replacement minus monthly rent before
tenant replacement in each fiscal period. The change amount of monthly rent upon tenant
replacement for the 36ｔｈ fiscal period (Jun. ‘20) is an estimate based on consents
regarding move-ins/move-outs and rents becoming effective in the fiscal period.

Target rent

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

Base rent

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

LTV

Rent gap

The rent gap for a month refers to, in lease contracts due for renewal during the four
periods from the period ending in June 2020, the ratio obtained by subtracting the total
difference between the lower limit of rent in the market range and the existing rent that islower than the lower limit of rent in the market range from the total difference between theupper limit of rent in the market range and the existing rent (excluding new contracts, etc.)that exceeds the upper limit of rent in the market range and dividing that monthly
difference by the monthly rent for the month in question.

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

Ratio ofunrealized gains
or losses(Appraisal value – book value) / book value

Cap rate

Definition ofbuilding classes

The definitions of building classes used in “Changes in the average rent of the 23 wards ofTokyo on page 45 are as follows.
Target area: Major business districts in 5 central wards of Tokyo and areas with highpercentage of office buildings in surrounding wards (Gotanda/ Osaki, Kita-shinagawa/
Higashi-shinagawa, Yushima/ Hongo/ Koraku, Meguro-ku)
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age lessthan 15 years
Class B: Floor size of 200 tsubo or more, not applicable of A class building (including ofbuilding except for A class of age more over 15 years)
Class C: Floor size of 100 tsubo or more but less than 200 tsubo

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

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

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking
statements are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty Investment
Management, Inc. (TRIM) based on information currently available, and are therefore not guarantees of future
performance. Actual results may differ materially from those in the forward-looking statements as a result ofvarious factors including known or unknown risks and uncertainties.

• This material is solely for the purpose of providing information, and is not intended for the purpose of offeringor soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.
• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.
• The photos used in this material include those of the assets other than what JPR owns or plans to acquire.
Please note that for assets indicated as land with leasehold interest, JPR owns only the land and does not own
any building on it.
• Unless otherwise noted, the figures indicated in this material are rounded down to the nearest specified unit formonetary amounts and space areas, and rounded off to the nearest specified unit for percentages and otherfigures. Accordingly, the sum totals of monetary amounts or percentages of respective items may not matchthe sum totals of actual figures.

60