JAPAN PRIME REALTY INVESTMENT CORPORATION
Presentation Material
For the 30th Fiscal Period Ended December 2016
February 20, 2017

8955

（Asset Manager）

Tokyo Realty Investment Management, Inc.

Table of Contents, Disclaimer andGlossary

Table of Contents
1.
2.

Characteristics of Japan Prime Realty Investment
Corporation (JPR)

2p

Growth Strategy and Operational Status

4p

2-1.

Medium-Term Growth Strategy

5p

2-2.

Internal Growth Strategy

8p

2-3.

External Growth Strategy

12p

2-4.

Financial Strategy

16p

3.

Financial Results and Operating Forecasts

17P

4.

Appendix

27p

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 purchaseof investment 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
for monetary amounts and space areas, and rounded off to the nearest specified unit for percentages andother figures. Accordingly, the sum totals of monetary amounts or percentages of respective items may not
match the sum totals of actual figures.

（Asset Manager）Tokyo Realty Investment Management, Inc.
Financial Instruments Exchanger (investment management business)
Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau

Acquisition price
The transaction price indicated in the sale and purchase agreement for acquisition of properties (hereafter, the “owned properties”) or
properties it plans to acquire (exclusive of expenses related to acquisition, property taxes and consumption taxes, etc.)
Total (acquisition price)
The asset size refers to the total amount of the 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 / occupancy rate based on concluded contracts
Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded contracts.
When occupancy rate for each fiscal period is indicated, it represents the average occupancy rate as of the end of each month that belongs to
the relevant fiscal period (period average of occupancy rate at end of month). Furthermore, it may be described as “average occupancy rate”
in order to distinguish it from “period-end occupancy rate.”
Occupancy rate based on generated rents(Total leased space – total leased space during rent-free and rent-holiday periods) / total leasable space
Average unit rent
Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease contracts with tenants; for certain properties, thefigure includes common charges, etc. received by master lessees without being recorded as JPR’s revenue
Number of tenants
The number of tenants counts the parties with whom JPR has concluded lease contracts for the building floors. When a single tenant leases
multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted
in plural.
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 itby the number of business days of the relevant fiscal period.
After-depreciation yield(Rental revenue - real estate − expenses related to rent business) / book value (or acquisition price, depending on the case)
Ratio of long-term, fixed interest rate debts
Long-term interest-bearing debts with fixed interests / total interest-bearing debts
Average maturity
Weighted average calculated by dividing the remaining periods to the repayment dates and redemption dates of borrowings and investment
corporation bonds at the end of each fiscal period by the balance of respective borrowings and investment corporation bonds at the end ofeach fiscal period
For borrowings with scheduled repayment in installments, the weighted average of the remaining period to the scheduled repayment datesof each installment payment in accordance with the relevant repayment amount
Average debt cost
Sum total of interest expenses on borrowings and investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and issuancemanagement expenses, divided by the number of business days for the relevant fiscal period and annualized by multiplying by 365 days /sum total of borrowings and investment corporation bonds
LTVInterest-bearing debts / total assets at end of period (based on total assets)
There are other calculation methods of LTV.
・LTV based on unitholders’ capital) = Interest-bearing debts / (interest-bearing debts + unitholders’ capital)
・LTV (based on valuation) = Interest-bearing debts / (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 and book value.
NAV per unit
(Unitholders’ value + reserve for reduction entry, etc. + unrealized gains or losses) / number of units outstanding
Ratio of unrealized gains or losses(Appraisal value – book value) / book value
Cap rate
Capitalization rate by the direct capitalization method
Direct capitalization method is one of the methods to calculate the value estimated by income approach (a method to estimate the value ofthe target property by calculating the sum total of present value of the net operating income which the target property is expected togenerate in the future), and capitalizes the net operating income of a certain period by using the capitalization rate.
Tokyo“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
Asset replacement
The “Asset Replacement” collectively refers to the transactions of GINZA GATES and FUNDES Suidobashi, which JPR acquired on December
15, 2016, Tokyo Square Garden which JPR acquired and plans to acquire on February 1 and April 4, 2017, respectively, and Fukuoka Bldg. and
JPR Hakata-chuo Bldg. JPR plans to sell on April 14, 2017.

1

JAPAN PRIME REALTY INVESTMENT CORPORATION

1. Characteristics of Japan Prime Realty Investment Corporation (JPR)2

1. Characteristics of Japan Prime Realty
Investment Corporation (JPR)A J-REIT listed in 2002 and managing a combined portfolio with office properties and urban
retail properties as investment targets

JPR focuses on the quality of its portfolio, continues to achieve internal growth, and secures stable
growth of cash distributions■ Overview of JPR
Name

Japan Prime Realty Investment Corporation(abbreviated as JPR)

Securities code

8955

Listing dateJune 14, 2002 (14 years since listing)Operational
standard of
portfolio（Target investment
ratio）（Ratio by asset class）
Office 70〜90% / Retail 10〜30%（Ratio by area）
Tokyo 80〜90% / Other cities 10〜20%

Asset Manager

Tokyo Realty Investment Management Inc.
(abbreviated as TRIM)

Sponsors(shareholding
ratio)

Tokyo Tatemono (52%), Yasuda Real Estate(18%), Taisei Corporation (10%), Sompo
Japan Nipponkoa Insurance (10%) and Meiji
Yasuda Life Insurance (10%)

Change in Shareholding Ratios
As of December 22, 2016, part of the TRIM shares held by Yasuda
Real Estate Co., Ltd. and Taisei Corporation was transferred to Tokyo
Tatemono Co., Ltd., increasing the shareholding ratio of Tokyo
Tatemono from 40% to 52%.

■ Characteristics of JPR
track record of stable management for over 14
1 Ayears
Since listing, JPR has steadily expanded its asset size while enhancing the qualityof its portfolio.

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

3

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.

internal growth through high occupancy
4 Continuous
rate and upward revision of rents
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 5 straight fiscal periods.

of a financial base that is stable over
5 Establishment
the long term

1. The indicated figures are as of the date of this document. For Asset size, Investment ratios and (Planned) acquisition price and ratio of
properties from sponsor pipelines, the indicated figures are those after the Asset Replacement is completed.
2. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

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

Asset size
（After the asset replacement）

435.0 bn. yen
Ratio by asset（After the asset replacement）

84.5%
Office 76.8%

Tokyo（Area）（Asset class）(planned) acquisition price and ratio
of properties from sponsor pipelines（After the asset replacement）

3,154bn. yen・ 72.5%
Upward revision of rents

5 straight fiscal
period（Dec. ’14 〜 Ｄｅｃ.

16）

Credit rating
R&I

AA-

（stable）

3. Properties from sponsor pipelines refer to properties acquired from sponsors, etc. and properties acquired based on information provided
by sponsors. Sponsors, etc. represent the five 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 of the entire portfolio.

3

JAPAN PRIME REALTY INVESTMENT CORPORATION

2. Growth Strategy and Operational Status42-1. Medium-term growth strategy

3-Year Quantitative Target （Dec. 2016 ~ Jun. 2019）

Steady progress is being made in implementing plans to achieve the medium-term target.

JPR established the medium-term quantitative target of 7,500 yen for DPU upon announcement of financial results for the
29th period
Continue to achieve growth of DPU to surpass the record high since listing of JPR, with forecast DPU of 7,200 yen for the 32nd
period■ Results, Forecast and Medium-Term Target of Distribution per Unit
Regain 6,000 yen

Maintain 6,000 yen

Grow to 6,500 yen

Target of 6,000 yen in
normal operation set
upon announcing
financial results in
Dec. 2011（yen/ unit）

Target of 6,500 yen
set upon announcing
financial results inJun. 2014

Grow to 7,000
yenTarget of 7,000 yen
set upon public
offering in Jun. 2015

Medium-Term Target 7,500 yen

Target of 7,500 yen
set upon announcing
financial results inJun. 2016

Target increase in DPU:
up 700 yen

DPU（Beginning-of-period forecast)）

8,000

DPU（Results）（3-year：Dec. ’16 〜 Jun. ‘19）

DPU（Medium-term target）

7,048
7,000
6,430
6,093
6,000

5,680

5,876

6,006

23rd

24th

6,419

26th

27th

7,200

31st

32nd

（Forecast）（Forecast）

6,756

6,150

5,611
Increased due to recordingof property tax, etc. on
properties acquired in 21st
period to costs

5,000

4,0000

6,031

6,351

6,588

7,140

7,500

18th

19th

20th

21st

22nd

1. Each of these figures is just a target or a plan. There is no guarantee that the figures will be achieved.

25th

28th

29th

30th

33rd

34th

（fiscal period）

35th

5

2-1. Medium-term growth strategy

Business Environment Perception, results and plan

Reinforce the base for stable growth over the medium to long term, while paying close attention
to the impact of changes in the external environment“Conduct focused investment in highly-stable blue-chip properties in Central Tokyo,” “improve the quality of the portfolio
through asset replacement” and “reinforce the financial base through issuance of new investment units at a premium”• Property prices are mostly in the ceiling zone.
• Relatively low priority of investigation is given to
properties in regional cities, as their prices are often
reported to be higher than the fair value.
• The main sponsor, with an increase in its
shareholding ratio, will reinforce its commitment to
JPR’s growth strategy.

• Long-term yields are kept stable thanks to the yield
curve control by the Bank of Japan• Signs of recovery area observed in demand forinvestment corporation bonds.
• Closely watch the lender trends in accordance withthe monetary policy going forward.

• Vacancy rate continues to fall, given a steadydecrease in employed population under favorable
employment conditions• Tenants prefer expanding leased floor space in thesame building to relocating for expanded floor
space.
• The impact of mass supply in Central Tokyo in 2018
and thereafter is assumed to be limited, considering
the situations of tenant diversification, rent levels
and gap in rents, etc.

Results

Financial Strategy• Progress was made in internal growth mostly asplanned.
• Occupancy rate based on generated rents increased
to the 97% level in the 30th period, with upwardrevision of rents surpassing downward revision byvalue for 5 straight periods• Raising of rents by utilizing rent-free periods, etc.,
which JPR conducted at an early stage, contributed toincreased revenues, along with the positive effect of
the rent-free periods expiring.

• JPR made focused investments of over 30 billion
yen in blue-chip properties in Central Tokyo,
including Tokyo Square Garden, by utilizing thesponsor pipelines.
• JPR enhanced the quality of its portfolio throughasset replacement, selling a low-yielding retailproperty and two office buildings (planned) that are
built many years ago.

• With the public offering conducted in January 2017
(total issue price: 21.2 billion yen, including
secondary offering through over-allotment), JPR
lowered its LTV to 40.7% (down 3.0 percentage
points from before the public offering) level toreinforce its financial base over the long term.
• JPR plans to internally reserve 200 million yen ingain on sale of real estate.
• JPR flattened repayment amount of each fiscal
period over the long term and reduced debt costs.

Plan

External Growth Strategy

Business
environment
perception

Internal Growth Strategy• At present, JPR sees no property for which there areconcerns about cancellations by large tenants orvacancy for a long period.
• With the actual gap in rents becoming increasingly
negative, focus on raising rents upon tenant
replacement from which future increases inrevenues are highly expected.

• Continue vigorously selective investments in officeproperties in Tokyo and urban retail properties, witha focus on their location and quality.
• Investigate asset replacement with sponsors overthe medium to long term.
• Continue external growth by utilizing preferential
negotiation rights and asset replacement, etc.

• Investigate and implement measures to help
reinforce the financial base, in preparation for
future changes in the financial environment.
• Utilize medium-term loans, which will help to flatten
the repayment amount for each fiscal period, andenhance refinance risk tolerance by expanding
liquidity on hand and other measures.

6

2-1. Medium-term growth strategy

Public stock offering

JPR conducted a public offering in order to reinforce the base for stable growth of distribution perunit.
■ Purpose and Effect■ Implementation of a Series of Measures• As JPR obtained opportunity to invest in blue-chip properties in Central Tokyo forover 30 billion yen, JPR conducted a public offering in order to enhance its portfolio
through asset replacement, while increasing its acquisition capacity and reinforcing
the base for stable growth of distribution per unit by issuing new investment units at
a premium.

a Strong and Solid Portfolio through Focused
1 Establish
Investments in Blue-Chip Properties• Conduct focused investments in bluechip properties in Central Tokyo
including Tokyo Square Garden• Conduct asset replacement by selling
two office properties built many yearsago• Enhance growth potential andstability of the portfolio

435.0 bn. yen

Ratio of Tokyo

83.1%

84.5%

Average age of
built

21.8 years

20.5 years

Unrealized gains

28.6 bn. yen

31.6 bn. yen

0

4.6%

4.6%

-50

Jun. 2016

LTV
Acquisition capacity（maximum LTV of 45%）

• Issuance of investment units at apremium helps to continuously
increase distribution per unit

NAV per unit
Cash distribution
per unit

Net increase in
asset replacement

200

40.8

Change inshareholding ratios

Acquisition properties

Acquisition
properties
GINZA GATES（101）FUNDES Suidobashi（32）40Tokyo Square Garden（184）Tokyo Tatemono 52%（+12%）

Acquisition month：Feb. ’17・Apr. ‘17

+133

+92

Sale properties+92

Fukuoka Bldg.（29）JPR Hakata-chouBldg.（19）Internal reserve in gainon sale（2）

+269

-48
30 Jun 15 Dec 6 Jan

1 Feb

35

4 Apr 14 Apr (date; month)■ Issue Overview
Effect

42.1%

40.8%

22.3 bn. yen

34.3 bn. yen

Establish a Strong and Solid Base for Stable Growth throughIssuance of Investment Units at a Premium
Jun. 2016

Issue price total （212）
Debt repayment （70）410.3bn. yen

Asset size

Acquisition price, etc. （left axis）（Actual numbers, etc. in brackets （100 million yen）） （%）
LTV （right axis）
45
43.7
Public stock offering

42.1

Effecta Strong and Solid Financial Base by Stably Controlling
2 Build
LTV

3

450

Jun. 2016

Average NOI
yield• Stably control LTV and keep
flexible investment attitude（100 million yen）

Effect273,896 yen

286,099 yen

6,756 yen

7,140 yen

1. Figures indicated in the “Effect” boxes are estimated amounts or estimated values based on the calculations, made upon the resolution of theissuance of new investment units through public offering (January 6, 2017), regarding the effects expected to arise after the public offering and theasset replacement. The figures may not necessarily match the actual amounts or values. The same applies for “Implementation of a Series of
Measures.”Total number of units

50,000 units （including, OA2,400 units）

Dilution ratio

5.4%

Issue price ・ Purchase price

439,040 yen ・ 425,152 yen

Discount rate

2.0%

Total purchase price

21,257 million yen （including, OA 1,020 million yen）

Portion ratio
Issue resolution date・
Determination of price date
Payment date・Delivery date

Retail, etc. 45：Institutional 55※total number of units ÷（number of units outstanding＋total number of units）

January 6, 2017 ・January 17, 2017
January 24, 2017 ・ January 25, 2017

1. Payment date and delivery date indicate the respective date in the primary offering.

7

2-2. Internal Growth Strategy

Occupancy Status

Occupancy rate remains stable at a high level due to strong demand for office spaces■ Occupancy Rate

■ Move-Ins/Move-Outs and Average of Downtime• Occupancy rate based on concluded contracts increased to the 98% level and occupancy
rate based on generated rents rose to the 97% level.
• By asset class, occupancy rate remain at the 97% level for office properties and at 100%for retail properties.

Occupancy rate based on concluded cntracts
Occupancy rate based on generated rents

（%）

100
99

98.3

98
97.0

97.2

97.5

97.4

97.8

97.3

95.8

930

97.4

97.5

31st

-9,747（㎡）+11,310+3,377

Major Move-out

Dec. ’16 Benetton Shinsaibashi Bldg.
Kanematsu Bldg.

95.7

Benetton Shinsaibashi Bldg.
（forecast） Tokyo Tatemono Honmachi Bldg.

Major Move-in-5,303㎡-1,222㎡

Benetton Shinsaibashi Bldg.
Kanematsu Bldg.

-980㎡-1,531㎡-2,123㎡

MS Shibaura Bldg.

+3,366㎡+1,205㎡+1,960㎡+980㎡

1. For Benetton Shinsaibashi Bldg. for the 30th period, the move-out space represents the space for which the master lease agreement for
the entire building with a single tenant was cancelled, and the move-in space represents the space based on the lease contracts to be
succeeded by end tenants.

26th

27th

28th

29th

30th

31st

32nd

（forecast）（forecast）

26th
95.9
99.6

27th
96.2
99.8

28th
96.1
100.0

29th
96.8
99.9

30th
97.5
100.0

（Average downtime）（Average rent-free period）（month）（month）996（Occupancy rate based on concluded contracts by asset class / %）OfficeRetail-10,341

Move-inMS Shibaura Bldg.

94.3

25th
95.7
99.6

30th

Jun. ’17 MS Shibaura Bldg.

95.2

25th

Move-out（fiscal periods）（forecast）

96.5

95
94

98.5

（Move-In/Move-Out Space ・ Major Move-in and Move-out）（period）

97
96

98.1

• At present, JPR sees no property for which there are concerns about cancellations by large
tenants or vacancy for a long period.

31th
97.2
100.0

32th
97.7
100.0

3
0

6
8.5

7.9

3

3.8
28th

29th

30th

31st (period)（forecast）

1. The figures for the occupancy rate based on concluded contracts and the occupancy rate based on generated rents for the 31st fiscal period
are estimates that reflect consents regarding move-ins and move-outs that will become effective in the fiscal period. The respective figures
for the 32nd fiscal period are estimates based on assumptions by JPR regarding move-ins and move-outs becoming effective in the fiscal
period.

0

2.3

2.4

1.9

28th

29th

30th

31st (period)（forecast）

1. Average vacancy period refers to the average period of vacancy between the move-in dates stipulated in the new lease contracts
becoming effective in each fiscal period and the move-out days of the previous tenants for the same leased spaces.
2. Average rent-free period refers to the average of the rent-free periods agreed upon in new lease contracts becoming effective ineach fiscal period.

8

2-2. Internal Growth Strategy

Status of Rent (1)Continue upward revision of rents and raising of rents upon tenant replacement

Ratio of contract renewals with upward revision of rents, ratio of new contracts with raised rents are kept at high levels andrents of office properties continued to rise
■ Rent Revisions

Upward revision amount ofmonthly rent

30th period■ Rent upon Tenant Replacement (increase/decrease of rent through tenant replacement)

Ratio of contracts withupward revision+10.9 million yen

32.7%+20.6%(compared with the number ofcontract renewal)(compared with rent includingcommon charges)（Revised amount of monthly rent）（million yen）

Upward revision

Downward revision+20

Negotiations underway for upward revisionof 8.8 million yen in monthly rent (including
planned proposal) aside from the amount
expected to be agreed upon

+15.3
+6.0

+5.9
-1.5

-4.7

-0.9

26th

27th

28th

+10.4
-0.4

+10.9
-2.8

Downward revision of rents
anticipated for retail properties
in regional cities

-10

200

81.8%
(compared with the number oftenant replacement)+16.6%(compared with rent includingcommon charges)（million yen）

Upward revision

Downward revision+10+5.2 million yen as difference between rents
upon cancellation and rents of expected newcontracts for spaces to be vacated, on top of
the amount expected to be agreed upon

29th

30th

+9.2

-5

-7.5
31st (period)（forecast）

25.6

No. of upward revision cases (left axis) （%）

50
34.0

+4.5

+5.1

-0.9

-0.3

29th

30th

+2.6
-0.7

-10
28th

28th

29th

(cases)40

No. of tenant replacement （left axis）
Ratio of upward revision （right axis）

70.6

0
27th

-6.1

32.7

12.5

26th

+1.6

31st (period)（forecast）（Ratio of tenant replacement with increased rent）

No. of revision cases (left axis)
Ratio of upward revision (right axis)

29.8

100

+5.1 million yen

Rate of increase inrent upon tenant
replacement（Change amount in monthly rent upon tenant replacement）+0（Ratio of upward revision）(cases)30th period

Ratio of tenant replacementwith increased rent

+5

+10

+0

Increase in monthly rent upontenant replacement

Rate of upward revision

30th

31st

25

20

0

0

(period)（forecast）
1. Revised amount of monthly rent indicates the sum total (including common charges) of monthly rent after revision minus monthly rent before
revision upon contract renewal with rent revision in each fiscal period. For the revised amount of monthly rent for the 31st fiscal period, theamount 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.
2. Ratio of upward revision is caluclated by dividing the number of cases where rents were revised upward upon contract renewal with rent revision ineach fiscal period by the number of cases with contract renewal in each fiscal period.

No. of upward revision （left axis）

（%）

100

81.8

50

36.0

0
28th

29th

30th

31st

（forecast）
1. Change amount in monthly rent upon tenant replacement indicates the sum total (including common charges) of monthly rent after
tenant replacement minus monthly rent before tenant replacement in eachfiscal period. The change amount of monthly rent upontenant replacement for the 31st fiscal period is an estimate based consents regarding move-ins/move-outs and rents becoming
effective in the fiscal period.
2. Ratio of tenant replacement with increased rent is calculated by dividing the number of tenant replacement with increased rent by the
number of new lease contracts in each fiscal period.

9

2-2. Internal Growth Strategy

Status of Rent (2)Continuously raise average rent by strategically utilizing target rent
The impact of mass supply in central Tokyo is limited as the ratio of office properties and large tenants at high rent levels is low■ Target Rents and Average Rents■ Ratio of JPR Properties by Rent Level（Targets rents）(Ratio of JPR office properties by rent level (Central Tokyo and Greater Tokyo))• JPR sets target rents, primarily for office properties, in order to raise rent.
(yen / tsubo)

18,000Target rent

Average rent (existing office)+2.7%

17,00016,000Base rent(Percentages show period-on-period comparison of target rents)

+2.9%

+1.5%

+1.5%

27th

28th

Target rent for the 31st
period: +8.5% overbase rent

29th

30th

31st (period)（forecast）（Average rent）（yen / tsubo）

14,900

Average rent （portfolio）

Average rent （existing properties）(Percentages show period-on-period comparison of average rents for existing properties)

Average rent of theportfolio rose due toacquisition of properties inCentral Tokyo

14,70014,500

+0.6%

+0.2%

27th

28th

+0.5%

+0.4%

0
14,30026th+0.3%

Assumed average rent ofexisting properties at fulloccupancy+0.0%

25 to less than 30
thousand yen

41.2%

0
14,00026th

12.1% 12.7%

15 to less than
20 thousand yen

Average rent (for officeproperties) surpasses base rent
(nearly equal to market rent).

15,000

+0.8%

+1.9%

30
Less than 15 thousand
thousandyen or
yen
more

29th

30th

（end of period）

31st（forecast）
1. Base rent refers to the rent level (the lowest limit) JPR sets for each fiscal period as the base for inviting new tenants and revising rents
for existing tenants, primarily for office properties, and are set at roughly the same level as market rent. Target rent is the rent level JPR
sets for each fiscal period in order to raise rents. Target rent is used as a guideline in conducting negotiations on rents, and JPR makes it apolicy to set the base rate as the lowest limit (target rent ≧ base rent).

14.1%
20 to less than
25 thousand yen

20.0%

With a low ratio of owned properties athigh rent levels, few properties compete
against large-scale office properties• Of the office properties in Central Tokyo andGreater Tokyo, 12.7% of the properties have an
average rent per tsubo of at least 30,000 yen(comparison of monthly rent).
• Of which, the ratio is 4.8% for existing properties
excluding Tokyo Square Garden.
1. Ratio of JPR office properties by rent level (Central Tokyo and Greater
Tokyo) refers to the ratio of monthly rent, by average unit rent perproperty, against the total monthly rent of office properties JPR owns
in Central Tokyo and Greater Tokyo as of December 31, 2016 plus
Tokyo Square Garden, a property acquired in the 31st fiscal period.

（Ratio of tenants occupying floor space of 300 tsubos or more）
Center Tokyo office
300 tsubo or more・30
thousand yen or more
2.6%
Center Tokyo office
300 tubo or more・less than 30
thousand yen
13.7% Greater
Tokyo office
300 tsubo or
more
Other
12.3%
71.4%

With a low share of large tenants at highrent levels, the impact of move-outs bylarge tenants is limited• The ratio of tenants occupying floor space of 300
tsubos or more at office properties in Central Tokyo
is 16.2%.
• Of which, the ratio of tenants with an average unit
rent of 30,000 yen or more is 2.6%.
• Of which, the ratio for existing properties excluding
Tokyo Square Garden is 1.4%.
1. Ratio of JPR properties with occupied floor space of 300 tsubos ormore per tenant refers to the ratio of each leased floor space in the“sum total of leased floor with leased floor space of 300 tsubos ormore and with rent of 30,000 yen or more per tsubo at JPR officeproperties in Central Tokyo,” “sum total of leased floor with leased
floor space of 300 tsubos or more and with rent of less than 30,000
yen per tsubo in the same category as above,” “sum total of leased
floor with leased floor space of 300 tsubos or more and with rent of
30,000 yen or more per tsubo at JPR office properties in Greater
Tokyo” and “Others” against the total leased floor space ofproperties JPR owns as of December 31, 2016 plus Tokyo Square
Garden, a property acquired in the 31st fiscal period.

10

2-2. Internal Growth Strategy

Possible Internal Growth

Continue to raise rents through rent revision and upon tenant replacement as well as by increasing
the occupancy rate based on generated rents
Endeavor on upward revision of rents for lease contract with ongoing rents that are at higher levels than market rents but
lower than the target rent
■ Sum Total of Period-on-Period Changes in Rent Revenue(existing properties)• Sum total of the period-on-period changes in rent revenue from existing properties
between the 25th period, when internal growth took a turn to an increase, and the32nd period is anticipated to be an increase of 610 million yen• In the 30th period, the amount of increase in rents through rent revision and upontenant replacement grew significantly, in addition to an increase in the occupancy rate
based on generated rents.
（million yen）

Move-ins/move-outs

Rent revision
+619

+600
+500
+400

（Ratio of factors contributing higher rents）
Increase in the occupancy rate based on
generated rents: 45%
Increase through rent revision and upontenant replacement: 55%+243（period on
period）

+619

+571

+327

+314

+329

+0

+21
+24
-3

+114
+32

+97

+82

+79

+149

+246
+242

+190

+291

+304

+82
-41

-100

Lower than target rent

+176

+200

+20

Gap in actual rents+10（31st 〜 34th）

-4.1%

+0

+328

+300

+100

(office properties)• Although the ongoing rents of office properties JPR owns are at higher levels thanmarket rent (nearly equal to the base rent), JPR will conduct upward revision for
ongoing rents that are lower than the target rent.
• Because many of the ongoing rents of lease contracts to be revised in the future arelower than the target rent, JPR intends to negotiate upward revision upon contract
renewal.
Higher than target rent （new contract, etc.）
Higher than target rent （except for new contract）（million yen）
Higher than base rent and lower than target rent
Lower than base rent
+30

Higher than target
rent

+700

■ Status of Rent Levels by Fiscal Period with Contract Renewal

Intends to negotiate
upward revision for
ongoing rents lower
than the target rent

-10
-20
-30
-40

25th

26th

27th

28th

29th

30th

31st

32nd (period)(forecast)(forecast)

1. Sum total of period-on-period changes in rent revenue (existing properties) indicates the aggregate full-period changes on a period-onperiod basis of rent revenues from existing properties due to move-ins/move-outs and rent revisions. The respective figures for the 31st
fiscal period are estimates based on consents regarding move-ins and move-outs becoming effective in the fiscal period and consents on
rents. The respective figures for the 32nd fiscal period are estimates based on the assumptions by JPR regarding move-ins and move-outs
becoming effective in the fiscal period and regarding rents.

31st

32nd

33rd

34th

(period)
1. Status of Rent Levels by Fiscal Period with Contract Renewal (office properties) indicates the compilation of the difference of monthly
amount, obtained by subtracting the target rent from the ongoing rent for contracts to be renewed in the 31st fiscal period through the34th fiscal period, for office properties JPR owns. The compilation is classified as “higher than target rent (new contract)” for ongoingrents in new contracts in the last three years higher than the target rent; “higher than target rent (excluding new contract) for ongoingrents excluding said newt contracts higher than the target rent, “lower than target rent and higher than base rate” for ongoing rents
lower than the target rent but higher than the base rate, and “lower than target rent” for ongoing rents lower than the target rent.
2. Gap in actual rents refers to the ratio obtained by dividing the difference of monthly amount (or, of the difference of monthly amountafter deducting the target rent from the ongoing rent for contracts to be renewed in the 31st fiscal period through the 34th fiscal
period, the difference of monthly amount after deducting the rents higher than the target rent (excluding new contract rents) from thesum total of rents that are lower than the base rent and rents that are lower than the target rent but higher than the base rent) by themonthly rent that serves as the calculation base.

11

2-3. External Growth Strategy

Properties to be acquired in 30th 「GINZA GATES」

Urban retail property located in Namiki-dori Avenue in Ginza, one of the largest retail areas inJapan, from Main Sponsor of JPR■ Characteristic
Situated in the brand street, the property’s location has evenhigher potential.
• Namiki-dori avenue is a “brand street” where foreign luxury brands such as
Louis Vuitton, Cartier and Chanel (planned) operates stores.
• In close proximity to Harumi-dori street, the property’s location is assessed tohave even higher potential in areas along Namiki-dori avenue.
＜Tenant composition＞

Tenant composition centering on luxury
brands features a sense of unity

銀座並木通りブランドマップ• In the low-rise section of the property, Belluti , thehigh-grade men’s shoes brand of the Louis Vuitton
Japan Group, runs a flagship store as a street-front
shop.
• The middle-rise section has tenants that feature asense of unity, including an esthetic salon, a beauty
clinic and a high-grade Japanese restaurant of tea
ceremony dishes, which provide a sense of high-grade
matching that of low-rise street-front stores.
• The property has a space of 40 to 50 tsubos per floor,featuring a size in high demand for brands seeking toopen and operate stores along Namiki-dori avenue andby service companies and restaurants on middle- andhigh-rise floors.

Rent expected to surpass the market rent level
Acquisition PriceAppraisal Value
Yield (assumption)

Yield （contract）
Acquisition Date

10,100 million yen
10,800 million yen（unrealized gain 669 million yen）
（NOI）3.2%（After-depreciation yield）3.1%（NOI）3.2%（After-depreciation yield）3.1%
December 15, 2016

Location

5-chome, Ginza, Chuo-ku, Tokyo

Leasable Space

1,666㎡

Leasehold area

230㎡ （leasehold）

Occupancy rate

100.0% （as of acquisition day）

• Rent for the first floor facing Namiki-dori avenue and in close proximity toHarumi-dori street is expected to have a little extra over the market rent level
because of the location with high potential.
• Rent for beauty-related service industry in particular is expected to surpassthe market rent level, due to enhancement of the entire building’s impression
as well as added value because of low-rise street-front stores operated byhigh-grade brands.
1. Yield (based on assumption) indicates the yield based on the annual income and expenditures calculated by
JPR with assumptions of tenant replacement and rent changes, etc. for the 10 years since acquisition. The
average occupancy rate for the period in the assumption is 98.4%.
2. Yield (based on contract) indicates the yield based on the annual income and expenditures depicted in thelease contracts, etc. upon acquisition.
3. Unrealized gains = Appraisal value – book value (at end of the 30th period)

122-3. External Growth Strategy

Properties to be acquired in 30th 「FUNDES Suidobashi」

JPR acquired the first property of the FUNDES series, which are compact urban commercial
facilities developed by the Main Sponsor■ Characteristic

Good location in close proximity to the station in a trade zone
with a large daytime population• Located in close proximity to the west gate of Suidobashi Station on the JR Line,the property enjoys high traffic convenience.
• To the south of the property, there is an office area featuring headquarters oflarge companies, etc. and a campus area with many universities and vocational
colleges. The leisure area to the north, centering on Tokyo Dome City, is among
Japan’s largest event spaces and is anticipated to attract visitors throughout theyear. As such, the property is in a trade zone with potential for attracting visitors
not only on weekdays but also during weekends and holidays.
• The daytime population of the zone is sufficiently large at 86,000 people within a
0.5 km radius. The actual volume of the surrounding market is supposed to beeven larger when, on top of the inflow of office workers and students, visitors toTokyo Dome City who are not counted as part of the daytime population are
included.
(Reference) Daytime population in major areas in Tokyo ＜Tenant composition＞（10 thousand）

12
10

10.8

8

Daytime population
10.4
8.7

6

7.7

7.6

4

4.8

4.5

Shinbashi

Nihonbashi

20Acquisition PriceAppraisal Value
Yield (assumption）<<FUNDES features theconcept of “urban retailproperty that develops“fun and joy” that can befound only here>>

Yield （contract）
Acquisition date
Location

3,250 million yen
3,380 million yen（unrealized gain 117 million yen）
（NOI）4.2%（After-depreciation yield）3.6%（NOI）4.3%（After-depreciation yield）3.7%
December 15, 20162-chome, Misakicho, Chiyoda-ku,
Tokyo

Nearby station

150m from Suidobashi station on the JR Sobu
Line

Leasable floor space

1,367㎡

Occupancy rate

100.0% （as of acquisition day）

Ginza

Marunouchi

Shinjuku

OtemachiShibuyaCompetitiveness arising from being relatively
newly-built, concept-oriented and having
appropriate size

• Although the area around the station has aconcentrations of many restaurants, the property,
which is a relatively newly-built, concept-oriented
building with food and beverage tenants and is close to
the station, has high scarcity value.
• Having a floor space of around 50 tsubos per floor, which is a suitable size
matching the trend in opening stores in recent years, the property has highcompetitiveness as an urban retail property.
1. Yield (based on assumption) indicates the yield based on the annual income and expenditures calculated by
JPR with assumptions of tenant replacement and rent changes, etc. for the 10 years since acquisition. The
average occupancy rate for the period in the assumption is 99.2%.
2. Yield (based on contract) indicates the yield based on the annual income and expenditures depicted in thelease contracts, etc. upon acquisition.
3. Unrealized gains = Appraisal value – book value (at end of the 30th period)
4. Daytime population within a 0.5km radium represents the daytime population of the area with a radius of 500
m from the location of the property as the center, on a mesh-block basis, in the 2010 National Census.
Daytime population refers to the population in the work and school areas to which employees or students
commute to workplaces or schools, and no consideration is given to such nonstationary movements as
shopping.

13

2-3. External Growth Strategy

Properties to be acquired in 31st 「Tokyo Square Garden」

Acquired co-ownership interest of a sponsor-developed, large-scale office building located inCentral Tokyo■ Characteristic

Kyobashi is an area in front of Tokyo Station, where remarkableevolution is seen with redevelopment projects in progress, and issituated midway between Nihonbashi and Ginza.
• In the area from JR Tokyo Station Yaesu Exit to Kyobashi, further enhancement ofpotential is expected as multiple redevelopment projects are progressing in recent
years, transforming the area into one of the best office districts in Tokyo.
• The property is directly connected to Kyobashi Station on the Tokyo Metro Ginza Line,and 24 railway lines are accessible at 5 stations including Tokyo Station.

High-Quality Property with great appeal boasting a floor plate ofmore than 1,000 tsubos（再開発予定エリア）

Acquisition priceOccupancy rate

18,400 million yen
20,000 million yen（unrealize gain 1,600 million yen）
（NOI yield）3.1%（after-depreciation yield）2.7%（NOI yield）3.5%（after-depreciation yield）3.0%
100.0%（as of acquisition day）

Acquisition dateFebruary 1, 2017（50%）, April 4, 2017 （50%）

Appraisal value
Yield（acquisition）
Yield（contract）

Location

3-chome, Kyobashi, Chuo-ku, Tokyo

Nearby station

Directly connected to Kyobashi Station on theTokyo Metro Ginza Line.

Number of office buildings with a• Completed in 2013, the property has a grossfloor area of approximately 35,000 tsubos and astandard floor space of over 1,000 tsubos
floor plate of over 1,000 tsubos, featuring a（Central Tokyo・built within 10 years・Dec. ‘16）
column-free, regular-shaped space to allow a
Office building standard floor
variety of office layouts.
space of over 1,000 tsubos in• Features high seismic performance with a central
central Tokyo
control system, and high environmental
performance assessed as “Platinum,” the highest
Shinjuku
rank, in the DJB Green Building Certification.
1 Bldg. 1 Bldg.
• International Medical Zone that provides thelatest medical services and childcare supporting
facilities that support both childcare and work
Bldg.Chiyoda
Minatoare established on the lower floors and the
5 Bldg.
6 Bldg.
property aims to enrich facilities responding tovarious office needs.

13

Office support facilities
childcare supporting facilities

Medical Zone

Conference center

Portion to be acquired by JPR and sponsor’s
ownership ratio
Portion to be
0.00%
acquired by JPR
Portionowned byother rightholders
45.67%

8.22%

Co-ownership
ratiosPortion to beacquired by Tokyo
Tatemono
46.11%• Obtained preferential negotiation rights when other portions ofco-ownership interest are to be sold

1. Yield (based on assumption) indicates the yield based on the annual income and expenditures
calculated by JPR with assumptions of tenant replacement and rent changes, etc. for the 10 years sinceacquisition. The average occupancy rate for the period in the assumption is 95.5%.
2. Yield (based on contract) indicates the yield based on the annual income and expenditures depicted in
the lease contracts, etc. upon acquisition.
3. Unrealized gains = Appraisal value – book value
4. The ratio in parenthesis of Planned acquisition date indicates the acquisition ratio to the scheduled
targeted portion of the acquisition (100%) on each planned acquisition date.
5. Central Tokyo indicated in Office building standard floor space of over 1,000 tsubos in central Tokyo:
Chiyoda ward, Chuo ward, Minato ward and Shibuya ward

14

2-3. External Growth Strategy

Vigorously Selective Investment Focused on the Quality of Portfolio

Take advantage of the sponsor pipelines, such as preferential negotiation rights, and opportunities
of asset replacement■ Utilized the Preferential Negotiation Rights Held by the Main Sponsor■ Continue External Growth by Utilizing Asset Replacement（Investment target）（Asset replacement policy）• Aim to build a strong and solid portfolio by systematically promoting asset
replacement.

TargetInvestment Strategy

Office properties in Tokyo that haveexcellent location characteristics and allow
expectations for stable competitiveness• Utilized the preferential negotiation rights held by
the main sponsor to acquire co-ownership interest ofTokyo Square Garden• Utilize the sponsor pipelines, such as preferential
negotiation rights held by JPR and the sponsors, toinvestigate acquisitions through negotiated deals.
• When selling properties to the sponsors for redevelopment, investigate asset replacement thatshould contribute to enhancement of the portfolio.

Urban retail properties that secure afterdepreciation yield• Relatively low priority of investigation is given
to these properties, as their prices are often
reported to be higher than the assumed fairvalue.

Office properties in regional cities thatwould bring expected returns with risk
premiums considered（Number of cases with property information obtained and investigated）
Number of caseswith information obtained
Number of caseswith information investigated

24th
108
51

25th
119
36

(Ratios of number of cases with information
obtained (outer ring) and information
investigated (inner ring))
Retail properties
in Other Cities
Retail properties
2%in Tokyo
14%
14%
Officeproperties in
Other Cities
25%

86%

26th
84
35

27th
84
40

28th
64
19

30th
63
14

（Debt procurement capacity for acquisitions)

LTV

Debt procurement capacity
for acquisitions

Acquisition capacity (45%)

34.8 billion yen
83.0 billion yen

Acquisition capacity (45%)
Officeproperties in
Tokyo
59%

29th
66
20

（period）• Control LTV at 45% at maximum for some time
• Keep flexible attitudes on acquisitions of large tomedium-sized properties by using debts• Promote vigorously selective investment at fair values
by utilizing the flexibility regarding the time scalerequired for negotiations

JPR• Enhance the quality of the portfolio
and profitability through asset
replacement.

SponsorPlanned sale

• Sponsors who are developers haveneeds to acquire properties to be redeveloped.

• When properties are sold to thesponsor, discussion on acquisition
after the properties are redevelopedby the sponsors is possible throughpreferential negotiations.

Assetreplacement• The main sponsors support expansionof JPR as part of their strategy toreinforce the comprehensive
strengths of the groups and enhancetheir business portfolio.

• Conduct vigorously selective
investment at assumed fair value.

Acquiring blue-chipproperties• Further reinforcement of the sponsor
commitment to JPR’s growth strategy.

Fukuoka Bldg.

JPR Hakata-chuo Bldg.

（Sale of real estate）
JPR Daikanyama
Sale price
1,880 million yen
Gain or loss
-299 million yen
Sale date
Sep. ‘16
Buyer
Not disclosure

Sale price
3,100 million yen
Gain or loss
+114 million yen
Sale date
Apr. ‘17
Buyer
SponsorSale price
1,900 million yen
Gain or loss
+94 million yen
Sale date
Apr. ‘17
Buyer
SponsorInternal Reserve of Gain on Sale of Real Estate
JPR plans to internally reserve the gain on sale of real estate regarding Fukuoka Bldg.
and JPR Hakata-chuo Bldg. (209 million yen) as reserve for reduction entry in order tosecure stable management and distributions in the future.

15

2-4. Financial Strategy

Establishment of a Strong and Solid Financial Base

Flatten repayment amount for each fiscal period and reduce debt costs■ Flattening of Repayment Amount for Each Fiscal Period over the Long
Term and Debt Cost Reductions■ Financial Indicators and Credit Rating Status• Procure funds with a focus on stability, based on the basic policy of borrowing
long-term, fixed interest rate debt
• In the 30th fiscal period, JPR worked to flatten repayment amount for each fiscal
period over the long term and expand the lender formation by conducting
borrowings that combine long-term and medium-term debts.

29th Period

30th Period

200

14.0 bn. yen

18.0 bn. yen+4.0 bn. yen

Average maturity （change）

9.3 years(+4.6 years)

7.4 years(+2.8 years)-1.9 years

0.66%（-0.54%pt）

0.52%（-0.52%pt）-0.14%pt

176.1 bn. yen

188.9 bn. yen+12.8 bn. yen

Average maturity

4.2 years

4.2 years-

Average debt cost
Ratio of long-term, fixedinterest rate debts

1.16%

1.10%

-0.06%pt

100.0%

96.3%-3.7%pt

100
50

20

40

50

130
83 81 91 80

11060+1.6%pt(maximum LTV of 50%)

66.4 bn. yen

54.3 bn. yen-12.0 bn. yen(maximum LTV of 45%)

22.3 bn. yen

10.1 bn. yen-12.2 bn. yen(Credit rating)R&I

AA- (Stable)

S&P

Long term ： A (Stable), Short term ： A-1

1. New debts, average maturity (change from before refinancing) and average borrowing interest (change from before refinancing) havebeen calculated by excluding short-term loans payable. Furthermore, JPR made early repayment of 7.0 billion yen in short-term loans,which JPR newly borrowed in the 30th fiscal period, on January 24, 2017.

30

20

100
48

50

25

Free cash larger thatthe repayment
amount for each fiscal
period andcommitment line that
surpasses the annual
repayment amount（as of February 20, 2017）

80 70 70

90
50

85
20

40

Repayment amountfor each fiscal period:
10 billion yen or less(target)31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 42nd 43rd 44th 45th 46th 47th 48th 49th 50th 51st（period）
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 （years）(Average debt cost by repayment date for the 31st period and thereafter)• The latest debt cost is lower than the average cost of debt that will mature in the future
Latest debt cost (actual)（%）

Average cost of debt to be repaid in each fiscal period2

10 years -0.4%

〜

43.7%

Acquisition capacity

50

195

2
42.1%

LTV (based on total assets)
Acquisition capacity

0

（%）

(LTV)

50

150

(Status of entire interest-bearing debts)
Total interest-bearing debts

Investment corporation bonds
Long-term loans payable
Flattening by utilizing debt with amedium borrowing period（100 million yen）

New debts

rate （change）• Reduce the repayment amount of debt in each fiscal period for the 34th period and thereafter toaround 10 billion yen.
• Reduce debt costs by conducting borrowings with a medium borrowing period that set the repayment
amount for each fiscal period at significantly lower than 10.0 billion yen

Change(Status of Borrowings by Fiscal Period)

Average borrowing interest(Diversification status of debt maturities)

10

5 years -0.8%
0.39

5 years

0.63

0.84

8 years 10.5 years

Room forreduction

Average interest rate 1.19
1

1.80
1.25

0

31st

1.02

1.07

0.97

32nd

33rd

34th

35th (period)

1. Latest debt cost represents the debt cost by borrowing period when JPR conducted debt financing as of December 15, 2016. The cost, shown as areference, indicates the actual interest rates that were applied for the latest debt financing by JPR and not the rates that may be applied to futureborrowings. Furthermore, no lending fee has accrued in the debt financing.

16

JAPAN PRIME REALTY INVESTMENT CORPORATION

3. Financial Results and Forecasts of Financial Results

173. Financial Results and Forecasts ofFinancial Results

Overview of Financial Results for the 30th Fiscal Period (period-on-period comparison)

Results of the 30th fiscal period ended December 2016
DPU:7,048 yen (up 292 yen, or up 4.3%, period-on-period)
Rent revenue from existing properties increased significantly period-on-period, as it did in the 29th fiscal period
Distribution per unit continued to grow steadily, as loss on sale of real estate was absorbed such one-time income ascancellation penalty
29th Period

30th Period(Jun. 30, 2016)(Dec. 31, 2016)

Operating revenue

14,246

15,105+859

Operating expenses

7,372

7,944

+572

Operating income

6,874

7,161

+286

Item

Revenue andprofit(million yen)

DPU (yen)

Operatingindicators(million yen)

Change(JPY mn)
Major Factors of Period-on-Period Changes*impactonnetincomeindicatedbyplus
and minus
Net income+256

Rental income - real e +618
Increa s e i n rent revenue (exi s ti ng properti es )+247

Non-operating income

68

7

-60

Contri buti on of rent revenue (a cqui red properti es (Dec. '16))+25

Non-operating expenses

1,045

1,015

-29

La ck of rent revenue (s ol d property (Dec. '16))-29

Ordinary income

5,897

6,153

+256

Increase in cancellation penallty, etc. and income ecquivalent to expenses for restoration to original condition

Net income

5,896

6,152

+256

Increa s e i n i nci denta l i ncome+98(per unit)

6,756

7,048

+292

Decrease in other income

-5

NOI

9,473

10,090+617

Increa s e i n uti l i ti es expens es-28

NOI yield (book value)

4.9%

5.1%

+0.3%pt(Reference) improve in the balance of utilities expense (incidental income-utilities expense)+70

Rental income - real estate

7,588

8,206

+618

Increase in repairs and maintenance due to implementation of planned value enhancement works, etc. ahead of schedule-166

After-depreciati on yield (book value)

3.9%

4.2%

+0.3%pt

Depreciation

1,885

1,884

-1

Capital expenditures

772

724

-47

Repairs and maintenance

420

586

+166

Average occupancy rate

97.8%

98.3%

+0.5%pt

Peri od-end occupa ncy ra te

98.1%

98.6%

+0.5%pt

Number of units outstanding (units)

873,000

873,000-

Increa s e i n other expens es
Gain or loss on sale of properties

No n o pe r at in g in c o m e

+521

-44

-299
-30 (due to assumed property sale in 30th period, etc.

Lack of settlement of management association accounts (mainly recorded in fiscal periods ending June)-50

Decrease in interest expense on loans and investment corporation bond+24

Other changes in non-operating income-4

1. For distribution per unit, JPR reversed part of the retained earnings brought forward that had been internally reserved and delivered it, on top of net income per unit, inorder to minimize the burden to unitholders incurred by accrual of corporate income tax, etc..

18

3. Financial Results and Forecasts ofFinancial Results

Overview of Financial Results for the 30th Fiscal Period (compared with forecasts)

Results of the 30th fiscal period ended December 2016
DPU compared with the forecast at beginning of period: up 48 yen (up 0.7%)
The balance of utilities expenses improved, while planned value enhancement works, etc. were implemented ahead ofschedule
Item

Revenue andprofit(million yen)

DPU (yen)

Operatingindicators(million yen)

30th Period

30th Period

Change(Foreca s t)

(Res ul t)

Operating revenue

15,055

15,105+50

Operating expenses

7,925

7,944

+18

Operating income

Major Factors of Changes from Forecasts (JPY mn)*Impacts on net income indicated by plus and minus
Net income+41
Rental income

+36

7,129

7,161

+31

Increase in rent revenue (existing properties)+9

Non-operating income

2

7

+5

Contri buti on of rent revenue (a cqui red properti es (Dec.'16)+25

Non-operating expenses

1,020

1,015

-5

Increase in cancellation penalty, etc. and income equivalent to expenses for restoration to original condition+25

Ordinary income

6,111

6,153

+41

Decrease in incidental income-11

Net income

6,111

6,152

+41

Increase in other income+1(per unit)

7,000

7,048

+48

Decrease in utilities expenses

+82

NOI

10,058

10,090+32(Reference) Improve in the balance of utilities expenses (incidental income‐utilities expenses)+71

NOI yield (book value)

5.1%

5.1%

- %pt

Increase in repairs and maintenance due to implementation of planned value enhancement works, etc. ahead of schedule-106

Rental income - real estate

8,170

8,206

+36

After-depreciation yield(book value)

4.2%

4.2%

- %pt

Depreciation

Increa s e i n other expens es+9Non-operating incom +10

1,888

1,884

-4

Capital expenditures

995

724

-270

Increa s e i n s ettl ement of ma na gement a s s oci a ti on a ccounts+1

Repairs and maintenance

480

586

+106

Decrease in interest expenses on loans and investment corporation bonds+3

Other changes in non-operating income+4

Average occupancy rate

98.3%

98.3%

- %pt

Period-end occupancy rate

98.6%

98.6%

- %pt

873,000

873,000-

Number of units outstanding (units)

1. Forecasts of financial results for the 30th fiscal period ended December 2016 are the figures announced on August 12, 2016, based on the following assumptions.
Investment properties owned: Total 61 properties (assuming a decrease of 1 property planned for sale from the properties owned at the end of 29th period),
average occupancy rate: 98.3%(an estimate that reflect consents regarding move-ins and move-outs that will become effective in the fiscal period)
LTV (based on total assets): 42.1% (end of 30th period)

19

3. Financial Results and Forecasts ofFinancial Results

Forecasts of Financial Results for the 31st Fiscal Period (compared with 30th period)

Forecast of the 31st fiscal period ending June 2017
DPU: 7,140 yen (up 92 yen, or up 1.3%, from 30th period actual results)
JPR issued new investment units through public offering in January 2017, but will keep stable growth of distribution per unit
JPR will internally reserve the gain on sale of real estate regarding in order to secure stable management and distributions in
the future
Item

Revenue andprofit(million yen)

30th Period (Result) 31st Period (Forecast)

ChangeMajor Factors of Changes from the 30th Period Results （JPY mn）

Net income+648

Rental income - real estate+103*Impacts on net income indicated by plus and minus

Operating revenue

15,105

15,106+0Operating expenses

7,944

7,366

-578

Operating income

7,161

7,740

+579

Increa s e i n rent revenue (exi s ti ng properti es )

+45
+462
-77

Non-operating income

7

39

+32

Contribution in rent revenue (properties acquired in 30th period and after)

Non-operating expenses

1,015

978

-36

Lack of rent revenue (properties sold in 30th period and after)

Ordinary income

6,153

6,801

+648

Decrease in cancellation penalty, etc. and income equivalent to expenses for restoratioon to original condition

Net income

Decrea s e i n i nci denta l i ncome

-599

6,152

6,800

+648

（Of whichi, gain on sale of properties）

(0)

(209)

(+209)

Increa s e i n other i ncome+3

Reserve (million yen)Transferred from reserve

0

209

+209

Decrea s e i n uti l i ti es expens es+32

DPU (yen)(per unit)

7,048

7,140

+92

(Reference) deterioration in the balance of utilities expenses (incidental income - utilities expenses)

-10

NOI

10,090

10,224+133

Operatingindicators(million yen)

NOI yield (book value)

5.1%

5.0%

-0.1%pt

Rental income - real estate

8,206

8,310

+103

After-depreciati on yield (book value)

4.2%

4.1%

-0.1%pt

Depreciation

1,884

1,913

+29

Capital expenditures

724

841

+117

Repairs and maintenance

586

241

-345

Average occupancy rate

98.3%

98.1%

-0.2%pt

Period-end occupancy rate

98.6%

97.2%

-1.4%pt

Decrea s e i n repa i rs a nd ma i tena nce expens es+345

Increase in other expenses-65

Ga i n o r l o s s o n s a l e o f p r o p e r t i e s+509(lack of loss on sale of properties in 30th period and gain on sale of properties in 31st period)

Non operating incom +68
Appropriation of settlement of management association accounts+32

Decrease in interest expense on loans and investment corporation bond+42

Other cha nges i n non-opera ti ng i ncome

Number of units outstanding (units)

873,000

923,000

1. Forecasts of financial results for the 31st fiscal period ended June 2017 based in the following assumption.
Investment properties owned: Total 62 properties(assuming an increase by one property planned to be acquired and a decrease by two
properties planned to be sold to and from the properties owned at the end of the 30th period)
Average occupancy rate： 98.1％ (an estimate that reflect consents regarding move-ins and move-outs that will become effective in thefiscal period)
LTV (based on total assets)： 40.7％ (end of 31st period)

-42

-6

+50,000
2. As for the gain on sale of real estate (209 million yen) assumed for the 31st period, JPR plans to record the amount as reserve for reduction entry by
employing the reduction entry method based on application of the Special Measures in Case Land or Other Property is Acquired in Advance in 2009 or2010 (Article 66-2 of the Act on Special Measures Concerning Taxation). The reserve for reduction entry is calculated based on the estimate amount of
the gain on sale of real estate while taking into account such factors as the requirements for the said special measures and requirements for deducting
profit distribution as expenses under the Act on Special Measures Concerning Taxation.

20

3. Financial Results and Forecasts ofFinancial Results

Forecasts of Financial Results for the 32nd Fiscal Period (compared with forecast for the 31st
period)Forecast of the 32nd fiscal period ending December 2017
DPU: 7,200 yen (up 60 yen, or up 0.8%, from 31st period forecast)Rent revenue will continue to increase period-on-period, with newly acquired properties operating for the entire fiscal period.
JPR will aim to achieve a further growth of distribution per unit by steadily implementing measures designed for the mediumterm target
Item

Revenue andprofit(million yen)

Rserve (million yen)

DPU (yen)

Operatingindicators(million yen)

31st Period (Forecast)

32nd Period (Forecast)

ChangeM ajo r Fac t o r s o f C h an ge s fr o m t h e 3 1 st Pe r io d

Net income-154

Rental income - real estate+18（JPY mn）*Impacts on net income indicated by plus and minus

Operating revenue

15,10615,000-105

Operating expenses

7,366

7,434

+68

Operating income

7,740

7,566

-173

Decrease in rent revenue (existing properties)

Non-operating income

39

2

-36

Contribution in rent revenue (properties acquired in 31st period)

Non-operating expenses

978

922

-56

La ck of rent revenue (properti es s ol d i n 31s t peri od)-94

Ordinary income

6,801

6,647

-154

Decrease in cancellation penalty, etc. and income equivalent to expenses for restoration to original condition-48

Net income

6,800

6,646

-154

Increa s e i n i nci denta l i ncome

+81

-0
+166

(Of which, gain on sale of properties)

(209)

-

(-209)

Increa s e i n other i ncome+0

Provision of reserve(per unit)

209

-

-209

Increa s e i n uti l i ti es expens es

-36

7,140

7,200

+60

(Reference) Improve in the balance of utilities expenses (incidental income‐utilities expenses)

+45

NOI

10,224

10,262+37

Increa s e i n repa i rs a nd ma i tena nce-22

Increa s e i n other expens e-26

NOI yield (book value)

5.0%

4.9%

-0.1%pt

Rental income - real estate

8,310

8,328

+18

After-depreciati on yield (book value)

4.1%

4.0%

-0.1%pt

Depreciation

1,913

1,933

+19

Capital expenditures

841

1,060

+218

Repairs and maintenance

241

263

+22

Average occupancy rate

98.1%

98.5%

Period-end occupancy rate

97.2%
923,000

Number of units outstanding (units)

Gain or loss on sale of expense-209 (Lack of gain on sale of properties in 31st period)

Non operating income+19

Lack of settlement of management association accounts (The item is recorded primarily in fiscal periods ending June each year)-32+0.4%pt

Decrease in interest expense on loans and investment corporation bond

+35

98.6%

+1.4%pt

Other cha nges i n non-opera ti ng i ncome or l os s

+17

923,000-

1. Forecasts of financial results for the 32nd fiscal period ended December 2017 based in the following assumption.
Investment properties owned : Total 62 properties(end of the 30th period)
Average occupancy rate ： 98.5％ (an estimate that reflect consents regarding move-ins and move-outs and rents that will become
effective in the fiscal period) LTV (based on total assets)： 40.7％ (end of 32nd period)21

3. Financial Results and Forecasts ofFinancial Results

Changes in Rental Business Profits and Gain or Loss on Sale of Real Estate

Rental income - real estate for the 32nd fiscal period will increase by 740 million yen (up 9.8%,
from 29th fiscal period)
Projected to increase by 340 million yen from existing properties and by 390 million yen from asset replacement throughproperty acquisition and sale
Item
Rental revenue - real estate
Rent revenue (fixed income)Rents and common charges
Land rents
Other fixed income
Other rental revenue (variable income)
Incidental income
Cancellation penalty, etc.
Income equivalent to expenses for restoration to original condition

Other variable income
Rental businessprofits(million yen)

Expenses related to rent business (excluding depreciation)

Outsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts
Other expenses related to rent business

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

29th Period

30th Period

31st Period (Forecast)

32nd Period (Forecast)(Jun. 30, 2016)14,246
13,42011,461
1,581
377
826
668
83
43
31
4,773
530
765
2,067
27
420
240
580
141
9,473
1,885
6,658
7,588
7,588

(Dec. 31, 2016)
15,105
13,664
11,700
1,581
382
1,441
767
398
249
25
5,014
542
794
2,059
25
586
248
591
166
10,090
1,884
6,898
8,206
0
300
7,906

(Jun. 30, 2017)
14,896
14,094
12,125
1,581
388
802
724
25
23
29
4,672
576
762
2,062
28
241
254
578
168
10,224
1,913
6,586
8,310
209
8,520

(Dec. 31, 2017)
15,00014,165
12,198
1,581
385
835
806
29
4,738
587
799
2,042
29
263
253
586
175
10,262
1,933
6,672
8,328
8,328

32nd Period (compared with 29th Period)

Amount of Change

+754
+745
+737
+7
+9
+138
-83
-43
-2
-34
+57
+33
-24
+2
-156
+12
+6
+34
+788
+48
+14
+740
+740

%
+5.3
+5.6
+6.4
+2.1
+1.1
+20.7
-100.0-100.0
-6.7
-0.7
+10.8
+4.4
-1.2
+8.1
-37.2
+5.3
+1.1
+24.5
+8.3
+2.6
+0.2
+9.8
+9.8

22

3. Financial Results and Forecasts ofFinancial Results

Changes in Major Items

Rent revenue in the 32nd fiscal period to increase by 740 million yen, or up 5.6%, from the 29th
fiscal period
JPR will conduct value enhancement works systematically in order to reinforce competitiveness; the balance of utilities
expenses will continue to improve■ Rent Revenue (factors for period-on-period changes)■ Repairs and Maintenance• Rent revenue will increase by 450 million yen due to asset replacement in the 30th and 31st fiscal
periods.
• Rent revenue from existing properties will increase by 290 million yen due to an increase in theoccupancy rate based on generated rents and higher rents through rent revision and upon tenant
replacement.

(JPY mn)

Rent
Increase byrevenue
move-ins
Increase/decrease by othercausesIncrease/decrease throughrevisions
Increase by asset replacement（acquisition/sale)

Decrease by move-outs-12

14,091+196-183• Repairs and maintenance excluding expenses for restoration to original
condition set at approx. 350 million yen in normal operation each fiscal period• Value enhancement works executed to be implemented in 30th period aheadof schedule(JPY mn)

600

-2
+262
-212

-298
+458

+5 -4

13,664

Approx. 350 million yen perperiod in normal operation

schedule in 31st period andthereafter300

14,161-1 +71
0+83

Repairs and maintenance (equivalent to expenses for restoration to original condition)
Repairs and maintenance (other than the above)
Normal operation
Plans implemented ahead of

23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd

(period)(forecast) (forecast)■ Balance of Utilities Expenses+393• The balance of utilities expenses (utilities expenses – incidental income) willcontinue to improve-12(JPY mn)

Balance utilities expense

200
150

13,420100

Improvement ofminus 170 million yen
per period from peak50
29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period (Forecast)(Jun. 2017)

32nd Period (Forecast)(Dec. 2017)

1. Rent revenue includes such fixed income as rents, common charges, land rents, parking lot revenues and advertisement charges. Each figure for the 31st
fiscal period is an estimate based on consents regarding move-ins/move-outs and rents becoming effective in the fiscal period. Each figure for the 32nd
fiscal period is an estimate based on the assumptions by JPR regarding move-ins and move-outs becoming effective in the fiscal period and regarding
rents.

023rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd (period)(forecast) (forecast)

1. Balance of utilities expenses represents the amount obtained by deducting incidental income from utilities expenses
for each fiscal period. Utilities expenses are expenses related primarily to the exclusive areas and common areas,
etc. of the properties JPR owns, while incidental income refers to income related primarily to the exclusive areas ofsuch properties. Accordingly, the balance of utilities does not represent the balance between utilities expenses andincidental income for the exclusive areas.

23

3. Financial Results and Forecasts ofFinancial Results

Fluctuations in Distribution per Unit

Distribution per unit for the 32nd fiscal period to increase by 444 yen(up 6.6%, from 29th fiscal period)■ Distribution per Unit (factors for period-on-period changes)(yen/unit)

Distribution per unit

Positive contribution

Negative contribution

NonIncrease inLack ofExpenses
cancellation rental income – operating
related to rent penalty, etc. real estate due income
business and and loss on to property
administrative sale of real acquisition and
expensessale
estateLoss on sale
Cancellation of real
penalty, etc. estate, etc
Expensesrelated to rent
business andOther rental administrative
expensesRent
revenuerevenue

-344
+597

+104

Dilution by
public stock
offering+78

Increase inrental income –real estate due
to property
acquisition andNonsale-8operatingincomeRent
revenue

7,048 +52
-36

Other
rentalrevenue

+431

-342

+358

-409

7,140

Rent
revenue-0

Increase in
Expenses rental income –related to rent real estate dueNon-operati
Otherbusiness and to property
rental administrative acquisition andng income
revenue
expenses
sale

+29

-81

+91

7,200

+21

-77

-305
+283

6,756

29th
(Jun. 2016)

30th Period(Dec. 2016)
Rent revenue from existing properties increased
significantly period-on-period
Loss on sale of real estate was absorbed by cancellation
penalty, etc.

• Increase in rent revenue (existing properties)+283 yen• Increase in cancellation penalty, etc. and income equivalent to
expenses for restoration to original condition+597 yen• Increase in repairs and maintenance-191 yen• Recording of loss on sale of property, etc.
-343 yen

31st Period(Jun. 2017)
Lack of cancellation penalty will be absorbed by having repairs andmaintenance works initially planned for the 31st period
implemented in the preceding fiscal period
Income will increase period-on-period due to internal growth,
external growth and effects of lowered debt cost

• Decrease in repairs and maintenance+374 yen• Lack of cancellation penalty, etc.
-686 yen• Lack of loss by sail of real estate, etc.
+344 yen• Increase in rental income – real estate due to property acquisition and sale+358 yen

1. Fluctuations in distribution per unit show the amounts obtained by dividing the period-on-period fluctuation amounts of respective periods by the total number of investment units outstanding at period end(31st period: as of end of Dec. 2016).

32nd Period(Dec. 2017)
Acquired properties contribute to profit (additional
revenue for 6 months)
Distribution per unit will continue to grow stably• Increase in rental income – real estate due toproperty acquisition and sale
+91 yen• Increase in Utilities Expenses, repair and maintenanceand settlement of management-79 yen• Decrease in interest expense+48 yen24

3. Financial Results and Forecasts ofFinancial Results

Progress in Achieving the Medium-Term Quantitative Target

JPR aims to achieve its medium-term target by continuing stable growth of DPU by 450 yen for the
31st fiscal period and thereafter
Seek for a further increase in after-depreciation yield, a supplementary index of the medium-term target, primarily throughinternal growth■ Progress in achieving of Distribution per unit

■ Progress in achieving of after-depreciation yield (book value basis)• Established the 3-year medium-term quantitative target (DPU of 7,500 yen) uponannouncement of financial results for the 29th period.
• To achieve the target, increase DPU by approximately 450 yen for each fiscal
period from 7,048 yen as actual DPU for the 30th fiscal period
Actual(yen/unit)

Forecast

Plan• Average yield of the portfolio as a supplementary index of the medium-term target
is set at 4.2%.
• Pursue improved profitability by continuing internal growth, while working toenhance the stability of the portfolio by acquiring blue-chip properties in Central
Tokyo

8,000

Medium-term target

Forecast

Actual

（%）

Plan

4.5

Medium-term target

7,500

7,048

7,000

6,756
6,588
6,351

6,419

7,140

(Supplementary index)

4.2

4.2

7,200

4.1

+450
（To achieve the target, increase DPU）

4.0
4.0

3.9

Aim to achieve thetarget ahead of theinitially scheduled date

3.8
3.7

3.8

3.6

3.6

6,150
6,006

3.5

6,000

3-year (Dec. 2016~Jun. 2019)

0
5,000

24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th (period)(forecast) (forecast)

1. Each of these figures is just a target or a plan. There is no guarantee that the figures are achieved.

3-year (Dec. 2016~Jun. 2019)0
3.0

24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th (period)(forecast) (forecast)25

3. Financial Results and Forecasts ofFinancial Results

Growth Scenario for Distribution per Unit

Growth Scenarios for Achieving Medium-Term Target
Continue internal growth, lower interest expenses and achieve external growth to enhance growth potential

Amount of increase in rent revenue: at least 250 yen as a target(Assumptions for occupancy rate based on generated rents
for office properties and rate of increase in rent revenue)• Occupancy rate based on generated rents foroffice properties and rate （%）: at least 96.5%• rate of increase in rent revenue (%): at least up
2.0%• Conservatively set plans while closely monitoring
the impact of mass supply of office spaces inCentral Tokyo in 2018 and thereafter on themarket conditions（yen/unit）

occupancy rate based on generated rents
for office properties and rate （%）
95.0 95.5 96.0 96.5 97.0 97.5

rate of increase in rent
revenue (%)

Internal growth strategy■ Simulation for Achieving the Medium-Term Target (contribution amounts to distribution per unit)

-104

-52

0

52

104

156

（yen/unit）

+1.0

-5

47

100

152

205

257

+900

+2.0

94

147

200

253

306

359

+3.0

192

246

300

353

407

460

Financial strategy

Debt cost (%)

31st 32nd 33rd 34th 35th

計

0.70

60

32

28

15

55

190

0.60

71

42

35

21

60

228

0.50

81

52

42

26

65

265

0.40

91

61

49

31

69

302

the target plus something extra（yen/unit）(Assumptions for after-depreciation yield and acquisition price)*The estimates in the table to the right do not include fundprocurement costs.

Internal growth

3.6

3.7

3.8

3.9

4.0

5.0

95

98

100

103

106

108

10.0

190

195

200

206

211

217

15.0

284

293

301

309

317

325

20.0

379

390

401

412

423

433

External growth

+200
+200

+450
+250
+0

Medium-termtargetMain
scenario

+350

+100
+100

Positive
scenario

Negative
scenario

Main scenario• Achieve the target through internal growth and debt cost reductions
Conservatively assume the rate of increase in rent revenue in comparison
with the actual figures• As the impact of mass supply of office spaces in Central Tokyo in 2018 andafterward is limited, it is assumed that vacancy rate does not surpass 5% andthe market rent does not fall
• It is assumed that long-term interest rate does not rise significantly from thecurrent level

Positive scenario• Realize external growth• Keep the rate of increase in rent revenue (plus 1.4% over the actual annual
figure)Negative scenario• Stagnant demand for office spaces and a rise in long-term interest rate, etc.

After-depreciation yield （%）
3.5

Finance+450

5 fiscal periods since 31st period

Amount of increase in rental income – real estate through property acquisitions:

Acquisition price(billion Yen)

External growth strategy（yen/ unit）(Assumptions of debts costs through future refinancing)• Work to acquire properties that should contributeto earnings from existing portfolio by utilizing
preferential negotiation rights and asset
replacement, etc.
• Acquisition price: 5.0~15.0 billion yen• The main scenario is to achieve the target through internal growth and debt
cost reductions• Aim to achieve further growth according to the positive scenario by realizing
external growth+0.0

Reductions in debt costs: at least 200 yen as a target• Average debt cost of repayments over five fiscal
periods since the 31st period: 1.19%• Average debt amount of repayments: about 70.0
billion yen
Average debt cost with assumed
refinance:0.5%~0.6%• Work to flatten repayment amount for each fiscal
period by effectively utilizing debt of a medium
borrowing period while focusing on long-term debt

(Growth Scenario for Distribution per Unit)

1. Each of these figures is just a target or a plan. There is no guarantee that the figures are achieved. The details of these policies may be changed without prior notice in accordance with the real estate market conditions and the investment environment in the future.
2. The contribution amounts to distribution per unit shown in the simulation of internal growth strategy, financial strategy and external growth strategy indicate the figures obtained by dividing the assumed full-period increase amounts based on respective assumptions by the total
number of investment units outstanding assumed for the end of the 31st fiscal period.

26

JAPAN PRIME REALTY INVESTMENT CORPORATION

4. Appendix

27

4. Appendix

Fund Summary

NOI

29th Period(Jun. 2016)
9,473 million yen

30th Period(Dec. 2016)
10,090 million yen

EPS

Operating revenue

6,874 million yen

7,161 million yen

FFO per unit

Interest expenses

955 million yen

931 million yen

5,896 million yen

Net income

29th Period(Jun. 2016)
6,754 yen

30th Period(Dec. 2016)
7,047yen

8,915 yen

9,549 yen

Net assets per unit

247,862 yen

248,154 yen

6,152 million yen

NAV per unit

273,915 yen

283,129 yen

422,500 yen

465,000yen

368,842 million yen

405,945 million yen

FFO7,783 million yen

8,336 million yen

Investment unit price (immediately before theex-rights date)

Depreciation

1,885 million yen

1,884 million yen

Market capitalization-1 million yen-299 million yen

Dividend yield (forecast)

3.2%

3.0%

7,010 million yen

7,612 million yen

PBR

1.7 times

1.9 times

772 million yen

724 million yen

NAV multiple

1.5 times

1.6 times

5,897 million yen

6,152 million yen

PER

31.3 times

33.0 times

Total assets

418,738 million yen

432,307 million yen

ROE

5.5%

5.6%

Balance of interest-bearing debts

176,126 million yen

188,960 million yen

FFO multiple

23.7 times

24.3 times

Net assets

216,384 million yen

216,639 million yen

AFFO payout ratio

84.1%

80.8%

Unitholders’ capital

210,395 million yen

210,395 million yen

Implied cap rate

3.7%

3.5%

Unrealized gains

DSCR

8.7 times

9.1 times

Interest coverage ratio

7.2 times

7.7 times

Gain or loss on sale of real estate properties(including loss on retirement of noncurrent assets)

AFFO
Capital expenditure
Total cash distributions

28,641 million yen

36,686 million yen

NOI yield (acquisition value)

4.6%

4.9%

NOI yield (book value)

4.9%

5.1%

NOI yield (appraisal value)

4.5%

4.7%

After-depreciation yield (acquisition price)

3.7%

4.0%

After-depreciation yield (book value)

3.9%

4.2%

After-depreciation yield (appraisal value)

3.6%

3.8%

LTV (total assets)

42.1%

43.7%

LTV (unrealized gains and losses)

39.4%

40.3%

45.6%

47.3%

873,000 units

873,000 units

Cash distribution per unit (result)

6,756 yen

7,048 yen

Cash distribution per unit (forecast)

7,000 yen

7,140 yen

LTV (unitholders’ capital)
Number of units outstanding (end of period)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

FFO = Net income＋depreciation−gain or loss on sale of real estate properties (including loss on retirement of noncurrent assets)
AFFO = FFO−capital expenditure
EPS = Net income / number of units outstanding (end of period)
NAV per unit = (Net assets + unrealized gains or losses – total cash distributions) / number of units outstanding (end of period)
Dividend yield (forecast) = Cash distribution per unit (annualized, forecast for the next fiscal period x 2) / investment unit pricePBR (price book-value ratio) = Investment unit price / net assets per unit
NAV multiple = Investment unit price / NAV per unit
PER (price earnings ratio) = Investment unit price / EPS (annualized, most recent result x 2)
ROE (return on equity) ＝ Net income (annualized, most recent result x 2) / net assets
FFO multiple = Investment unit price / FFO per unit (annualized, most recent result x 2))
AFFO payout ratio = Total cash distributions / AFFO
Implied cap rate = NOI (annualized, forecast for the next fiscal period x 2) / (market capitalization + interest-bearing debts – cash anddeposits + tenant leasehold and security deposits)
DSCR = (Net income + depreciation + interest expenses) / interest expenses
Interest coverage ratio = Operating revenue / interest expenses
Interest expenses include interest expenses on investment corporation bonds.

28

4. Appendix

Track Record of 14 Years■ Cash Distribution per Unit and Occupancy Rate
Cashi distribution per unit (yen)Occupancy rate (%)

99.0 98.7 98.0 97.0
96.9 97.0 97.2 97.5 97.4 97.8 98.3
96.2 96.4 96.1
96.1 97.7 98.3
95.2 94.0 93.8
93.6 94.0 95.0 94.8 94.4 95.6
92.6 93.1 94.3 94.9
Occupancy rate
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

6,419 6,588
6,150 6,351

6,756

96.0% on average

7,048

3,731

Cash distribution per unit

2,545

6,372 yen on average(excluding the 1st Period)

1st(Jun. ‘02).

2nd(Dec. ’02)

3rd
(Jun ’03)

4th(Jun ’03)

5th(Jun. ’04)

6th
(Dec. ’04)

7th
(Jun. ’05)

8th
(Dec. ’12)

9th
(Jun. ’06)

10th
(Dec. ’06)

11th
(Jun. ’07)

12th
(Dec. ’07)

13th
(Jun. ’08)

15th
(Jun. ’09)

14th
(Dec. ’08)

16th
(Dec. ’09)

17th
(Jun. ’10)

18th
(Dec. ’10)

19th
(Jun. ’11)

20th
(Dec. ’11)

21st(Jun. ’12)

22nd
(Dec. ’12)

23rd
(Jun. ’13)

24th
(Dec. ’13)

25th
(Jun. ’14)

26th
(Dec. ’14)

27th
(Jun. ’15)

28th
(Dec. ’15)

29th
(Jun. ’16)

30th
(Dec. ‘16)

(period)■ Asset Size
Office properties in
Tokyo

921

945

1,257 1,396

Office properties in
Other Cities

1,636

1,796

Retail properties(based on acquisition price; 100 million yen)

3,809 3,919

1,976 2,026 2,092

2,224

2,453 2,519

2,751 2,806

2,994 3,106

3,986 4,047 4,047 4,055 4,095 4,103 4,103

4,214

3,312 3,415 3,415 3,449

Breakdown by area and byasset class(as of December 31, 2016)
Office properties in Tokyo
277.5 billion yen
Office properties in Other
Cities43.0 billion yen
Retail properties

100.9 billion yen
1st(Jun. ‘02).

2nd(Dec. ’02)

3rd
(Jun ’03)

4th(Jun ’03)

5th(Jun. ’04)

6th
(Dec. ’04)

7th
(Jun. ’05)

8th
(Dec. ’12)

9th
(Jun. ’06)

10th
(Dec. ’06)

11th
(Jun. ’07)

12th
(Dec. ’07)

1. As of July 30, 2016, the asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office.”

13th(Jun. ’08)

14th
(Dec. ’08)

15th
(Jun. ’09)

16th
(Dec. ’09)

17th
(Jun. ’10)

18th
(Dec. ’10)

19th
(Jun. ’11)

20th
(Dec. ’11)

21st(Jun. ’12)

22nd
(Dec. ’12)

23rd
(Jun. ’13)

24th
(Dec. ’13)

25th
(Jun. ’14)

26th
(Dec. ’14)

27th
(Jun. ’15)

28th
(Dec. ’15)

29th
(Jun. ’16)

30th
(Dec. ‘16)

(period)29

4. Appendix

Portfolio Diversification (as of December 31, 2016)

Ratio by Asset Class

Ratio by Area

• Portfolio management standards (target
investment ratios):• Portfolio management standards (target investment
ratios): 80 - 90% for Tokyo / 20 - 10% for Other Cities• Comprised of medium-sized to very large properties with afocus on quality(Small-scale properties with a standard floor of less than 100 tsubos are excluded frominvestment targets.)

70 - 90% for office properties / 30 - 10% for retailproperties

Medium-sized

Other Cities

Retailproperties

16.4%

24.0%

(3,000 m2 to less than
10,000 m2)
Central Tokyo

Greater Tokyo

Officeproperties

Ratio by Asset Size (Office Properties)

29.2%

32.6%

Very large(30,000 m2 or more)

54.4%

41.4%
Large

76.0%

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

26.0%

Ratio by Rent Zone (Office Properties in Tokyo)• Diversify the rent zones to diversify the timing at which
rents are affected by the market
30 thousand yen
moreLess than 15
thousand yen

11.8%
15 to less than 20
thousand yen

38.3%

3.9%
25 thousand
yen or more

18.7%

20 to less than 25
thousand yen

27.3%

Ratio by Tenant’s Industry (Office Properties)• Comprised of tenants mainly in the services, information andcommunication and manufacturing sectors
Medical and Welfare 1.2%
Other 0.9%
Transportation 2.3%
Public Services 4.6%
Real Estate• Obtained preferred negotiation rights for most of the coowned properties, etc.

Services

7.8%

21.6%

Construction

8.0%

Information andCommunication

Wholesale and Retail

18.4%

11.3%
Manufacturing

Finance andInsurance

11.9%

11.9%

1. Ratio by Size (Office Properties) indicated the ratios based on the acquisition price for the total floor space of an entire office property.
2. Ratio by Rent Zone (Office Properties in Tokyo) indicates the ratios of the acquisition price by average unit rent zone (including common
charges and assuming occupancy of vacant spaces at the standard rent set forth by JPR) to the total acquisition price of office properties
in Tokyo that JPR owns. Furthermore, The Otemachi Tower (Land with Leasehold Interest) is excluded from the calculation as it is a land
property.

Ratio of Co-Owned Properties, Etc.

Full ownership33 buildings
44.3%

Co-owned
properties, etc.
30 buildings
55.7%

3. Ratio by Tenant’s Industry (Office Properties) = Leased space of each tenant by industry / sum total of leased office space
4. Ratio of co-owned properties indicates the based on the acquisition price.
5. As of July 30, 2016, the asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office.”.

30

4. Appendix

Tenant Diversification (as of December 31, 2016)■ Ratio of Tenant Occupancy■ 20 Largest Tenants (by property; based on end tenants)• The number of office tenants other than the sponsors, etc. with tenant
occupancy of 1% or more is only 2 (combined occupancy: 2.4%)(excluding property comprising land with leasehold interest) .
• Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.

Category (No. of
tenants)

TenantLess than 1%

67.5%

1.7%
Other tenants with
2.4%
1% or more

Ratio ofoccupancy（%）

Housing Design Center Kobe

35,444.13

7.5

Seiyu GK

Tanashi ASTA

31,121.71

6.6

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.2

JPR Umeda Loft Bldg.

18,586.97

4.0

Musashiurawa Shopping Square

9,558.51

2.0

Tower Records Japan Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

1.7

The Maruetsu, Inc.

Cupo-la Main Bldg.

5,963.00

1.3

Nitori Holdings Co., Ltd.

Musashiurawa Shopping Square

5,285.40

1.1

Sponsors, etc. with
1% or more
Tokyo Prime Stage Inc.
(1 company)

The Otemachi Tower (Landwith Leasehold Interest)

7,875.50

1.7

Retail tenants with
1% or moreSponsors, etc. with
1% or more

Leasedspace(㎡)

ABC Development Corporation

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

28.4%

Occupying property

Other tenants with Hitachi, Ltd. Infrastructure Systems
Company
1% or more
Hitachi Systems, Ltd.
(2 companies)

Rise Arena Bldg.

6,023.39

1.3

JPR Nagoya Fushimi Bldg.

5,313.36

1.1

LEVEL-5 Inc.

Yakuin Business Garden

4,579.17

1.0

Sompo Japan Nipponkoa Inc.

Sompo Japan Sendai Bldg.

4,400.03

0.9

ATM Japan, Ltd.

Olinas Tower

4,255.56

0.9

Nihon Suido Consultants Co., Ltd.

Shinjuku Square Tower

4,242.48

0.9

Canon Imaging Systems Inc.

Niigata Ekinan Center Bldg.

4,078.97

0.9

Kajima Corporation

Omiya Prime East

4,005.05

0.9

Mitsubishi Electric Information
Systems Corporation

MS Shibaura Bldg.

3,922.74

0.8

SBS Holdings, Inc.

Olinas Tower

3,850.43

0.8

Security communication
Association (foundation)

Olinas Tower

3,544.12

0.8

Less than 1%(668 companies)

Except for retail properties with long-term lease contracts,
most of the tenants have a tenant occupancy of less than
1% so that the risk of tenant move-outs is mitigated.
1. Ratio of occupancy indicates the figure for each property and is based on end tenants , calculated by using the following formula.
Ratio of occupancy = Leased space of each tenant / leasable floor space of the property
Leased space of each tenant for properties subleased by the tenant to sublessees is calculated based on the space leased to the sublessees.
2. For co-owned properties, etc., the leases space in accordance with JPR’s ownership interest is indicated.

31

4. Appendix

Move-Ins and Move-Outs of Tenants (as of December 31, 2016)■ Breakdown and Changes in Move-Ins and Move-Outs■ Move-In/Move-Out Spaces by Property
Move-ins – move-outs(Move-in/move-out spaces by area and asset class: m2)
Move-Ins
Office properties inCentral Tokyo
Office properties inGreater Tokyo
Office properties in
Other Cities
Retail properties

20,000Rate of move-ins (right axis)

2.2
9,994

11,598

Gotanda First Bldg.

364

364

4,223

-5,611-1,387

Shinjuku Square Tower-22-358 335+105

BYGS Shinjuku Bldg.

-213

-675

461

+968

Shinjuku Center Bldg.

-9

-82

72

JPR Harajuku Bldg.

0-453 453

Tokyo Tatemono Kyobashi Bldg.

-388

-388

JPR Nihonbashi-horidome Bldg.

-629

-629

Ginza Sanwa Bldg.

37

37

Science Plaza – Yonbancho Plaza-49-190 141

JPR Daikanyama

0

-169

169

JPR Jingumae 432

105

0

105

Arca East

1,032

Shinyokohama 2nd Center Bldg.

-98

-98

Kawaguchi Center Bldg.

0

-103

Tachikawa Business Center Bldg.

-20-110 90

Yume-ooka Office Tower

304

-145

Tokyo Tatemono Honmachi Bldg.

-109

-109

JPR Hakata Bldg.

72

Tenjin 121 Bldg.

-55

-55

JPR Dojima Bldg.

641

-143

Beneton Shinsaibashi Bldg.

-1,937-169-10,341（%）

Rate of move-outs (right axis)

2.4

3.0

2.5

13,663

11,31010,8700-5,512-10,000-11,603-1.2

24th
Period25th
Period-12,890-7,641-10,392-10,341

-2.3

-2.3

-2

-1.7
-2.6

-2.7
-20,000

4

2
11,7640-12,051

26th
Period1,960

101+1,2182.6

8,224

MS Shibaura Bldg.

-101

-458

1.8

10,000

0

-2.8

27th
Period28th
Period29th
Period-4

30thPeriod (period)

1. Rate of move-ins and move-outs = Move-in and move-out spaces of each fiscal period / total leasable space at the end of the previous fiscal period
2. Move-in/Move-Out Spaces by Property indicates only the properties that had tenant moves (including contract changes, etc.) during the 30th Period
3. For Benetton Shinsaibashi Bldg., the move-out space represents the space for which the master lease agreement for the entire building with a single tenant was cancelled, and the move-in
space represents the space based on the lease contracts to be succeeded by end tenants.

（㎡）

1,205

1,677

Move-outs (left axis)

2.6

Shin-Kojimachi Bldg.

-1,222+1,032(Changes in move-in/move-out spaces and rate of move-ins/move-outs)
Move-ins (left axis)-17-4,101

11,310（㎡）

Kanematsu Bldg.

Move-ins

5,134

275

Total

Net Increase/DecreaseMove-Outs

Move-outs

1,960

1,032
103
450
72

-5,303

785
3,366

32

4. Appendix

Yields (as of December 31, 2016)■ Yields by Area and by Asset Class (based on book value) ■ NOI Yield by Property (based on book value)
Central Tokyo(NOI yield)
（%）

10

5

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

Portfolio average
5.1%

5

10

3.2

Kanematsu Bldg.

Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.

Minami Azabu Bldg.

105

Shinagawa Canal Bldg.

Officeproperties in
Officeproperties in Greater Tokyo
CentralTokyo

Officeproperties in
Other Cities
6.7%

4.5%
3.3%

Retailproperties

2.7
3.6
3.5

JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi
Tower (landwith leaseholdinterest)
The Otemachi
Tower(Land with…

4.6%

Portfolio average
4.2%

Shibadaimon Center Building
JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432

0Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
GINZA GATESFUNDS Suidobashi
Average of Central Tokyo

1. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

5.6
6.0
4.8

Science Plaza-Yonbancho Plaza

5.8
5.2
6.3

Kawasaki Dice Bldg.

8.3

JPR Nihonbashi-horidome Bldg.

4.1

JPR Musashikosugi Bldg.

4.1
5.3
5.8

Tokyo Tatemono Kyobashi Bldg.

8.3

Cupo-la Main Bldg.
Musashiurawa Shopping Square

Rokubancho Bldg.
JPR Harajuku Bldg.

13.6

Tanashi ASTA

3.0
3.2
3.1

Shinjuku Center Bldg.

Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East

7.5

Across Shinkawa Bldg. Annex

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

Rise Arena Bldg.
Yume-ooka Office Tower

3.6
4.3

BYGS Shinjuku Tower(After-depreciation yield)

JPR Ueno East Bldg.
Tachikawa Business Center Bldg.

8.0

Shinjuku Square Tower

0

8.4
7.6
8.2
6.5
6.5
5.8
5.0
6.4
6.7

Kawaguchi Center Bldg.

3.2
4.3
5.3
4.1
4.2

0.8
2.5
3.6
3.1
3.3
4.6
3.9

Average of Greater Tokyo

9.7

Niigata Ekinan Center Bldg.

2.9

Tokyo Tatemono Honmachi Bldg.

6.5
7.1
8.3

JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.

9.7

Sompo Japan Wakayama Bldg.

6.2

Tenjin 121 Bldg.
JPR Dojima Bldg.

1.1
5.8

JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden

3.7
6.3
26.6

Benetton Shinsaibashi Bldg.
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

15

5.2
5.6
6.3

Shinyokohama 2nd Center Bldg.

5.0

MS Shibaura Bldg.

10

JPR Yokohama Nihon Odori Bldg.

6.6

JPR Ningyo-cho Bldg.

JPR Crest Takebashi Bldg.

5

JPR Chiba Bldg.

5.1

Kanematsu Bldg. Annex

Shin-Kojimachi Bldg.

015Arca East

Oval Court Ohsaki Mark West

（%）

（%）

（%）

0

Officeproperties in
OfficeRetail8.4%
properties in Greater Tokyo
properties
Central
OfficeTokyo
properties
in
6.0%
5.6%
Other Cities
3.9%

Greater Tokyo and Other Cities

5.3
5.9
4.3
7.2

33

4. Appendix

Diversification of Lenders and Lender Formation (as of December 31, 2016)

Diversifying fund procurement sources with a lender formation comprising
26 financial institutions and through issuance of investment corporation bonds
Interest-bearing debt balance: 188,960 million yen(JPY million)(Of which, long-term interest-bearing debts amount to 181,960 million yen)
Sumitomo/Mitsui/Trust/Bank,
Limited
Tokio/Marine/&/Nichido/Fire
Insurance Co., Ltd.
Daido/Life/Insurance Company
The Iyo Bank, Ltd.
Resona Bank, Ltd.
The Hachijuni Bank, Ltd.
Sompo/Japan/Nipponkoa
Insurance Inc.
National/Mutual/Insurance
Federation/of/Agricultural
Cooperatives
Sumitomo/Life/Insurance
Company
The Norinchukin BankThe Chugoku Bank, Ltd.
Taiyo Life Insurance Company
The Shinkumi Federation BankORIX Bank Corporation
The Nishi-Nippon City Bank, Ltd.
Meiji/Yasuda/Life/Insurance
Company

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

Investment corporation
bonds
34,500(Breakdown of investment corporation bonds)

Mizuho Bank, Ltd
26,000Seventh series of bonds
Fourteenth series of bonds
Fifteenth series of bonds

The Bank of TokyoMitsubishi UFJ, Ltd.
18,000

2,000
2,000

Sixteenth series of bonds
Seventeenth series of bonds
Eighteenth series of bonds

Sumitomo Mitsui Banking
Corporation
12,900

2,000
3,000
3,000
3,000
3,000
3,000
4,000

Nineteenth series of bonds
Twentieth series of bonds
Twenty-first series of bonds
Twenty-second series of bonds

4,500
2,000
5,000
2,000
5,000
2,000
5,000
2,000
4,000
3,000

Development Bank of Japan,
Inc. 10,320

4,340

Shinsei Bank, Ltd. 10,000
The Bank of Fukuoka, Ltd.
5,000

Mitsubishi UFJ Trust andBanking, Corp. 8,000

Shinkin Central Bank 5,000
Mizuho Trust & Banking Co., Aozora Bank, Ltd. 7,900
Ltd. 7,000
1. The graph excludes short-term loans payable.

34

4. Appendix

Appraisal Value (as of December 31, 2016)■ An Increase in Unrealized Gains• Unrealized gains expanded to 36.6 billion yen due to an increase in appraisal
value and property replacement• Appraisal value increased for 50 properties with direct cap rate falling for 56
properties (out of 63 properties in total)
Appraisal value
Unrealized gains
Ratio of unrealized gains

437.9 billion yen

36.6 billion yen(up 18.1 billion yen from 29th
period)(up 8.0 billion yen from 29th
period)600(Changes in direct cap rate)• Decreased by 0.8 percentage points from the 17th period ended June 2010
(4.8%), the peak period for office properties in Central Tokyo（%）

Entire portfolio

Office properties in Central Tokyo

5.2

9.1%
(up 1.8%pt from 29th period)

5.0
4.8
4.6

(Changes in unrealized gains and losses)(100 million yen)

■ Factors of Change in Appraisal Value

Unrealized gains and losses (left axis)
Ratio of unrealized gains and losses (right axis)

（%）

30

500

25

400

36.6 billion yen 20

300

15

200

9.1% 10

100

5

0

0

-100

-5

-200

- 10

-300

- 15

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30(end of period)

4.4
4.2
4.0
3.8
0.0

15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th
Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period(end of period)

1. The changes in direct cap rate indicate the figures for the 51 properties JPR has owned since the end of June 2009 for the "Entire
portfolio," and for the 16 properties JPR owns since the date for "Office properties in Central Tokyo," respectively.

(Breakdown of unrealized gains and losses)• Number of properties with unrealized losses decreased by 3 from 19 properties asof the end of the 29th period(100 million yen)
Unrealized gains
Unrealized losses
+600
+400
+200

47 properties
63 properties+0

16 properties-20.9 billion yen

-200
-400

57.6 billion yen

36.6 billion yen

Entire portfolio

Breakdown of unrealized gains andlosses35

4. Appendix

Property name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Building
Minami Azabu Building
Shinagawa Canal Building
Rokubancho Building
JPR Harajuku Building
Tokyo Tatemono Kyobashi Building
JPR Nihonbashi-horidome Building
JPR Sendagaya Building
Ginza Sanwa Building
The Otemachi Tower(Land with Leasehold Interest)

Science Plaza - Yonbancho Plaza
Shibadaimon Center Building
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Building
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.

Kawaguchi Center Bldg.
JPR Ueno East Bldg.

Appraisal Value by Property (as of December 31, 2016)

Appraisalvalue(mn yen)Change(mn yen)Direct cap(NCF Cap)(%)

Change(%pt)

DCF
discount
rate
(%)

DCF
ChangeChangeterminal cap
(%pt)
(%pt)
(%)

Book value(mn yen)

Unrealized
gain or loss
(mn yen)

Property nameAppraisalvalue(mn yen)12,900
2,590
2,570
3,230
3,240
11,400
2,520
3,040
5,080
4,580
13,80016,200861
14,400
2,690
1,840
3,360
8,510
5,810
6,480
11,500
3,730

+100
+50
+20
+130
+90
+50
+20
+80
+70
+100
+700
+500
+50
+20
+40
+250
-90
+90
+200
+120

3.7
4.1
4.3
4.1
4.0
4.4
4.1
3.9
3.9
4.1
4.0
3.9
4.8
3.7
4.3
4.3
6.5
4.0
4.2
4.4
4.0
3.5

-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.2
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1

3.5
3.9
4.1
3.8
3.8
4.1
3.8
3.6
3.7
3.9
3.8
3.7
4.6
3.4
4.1
4.0
4.2
3.8
3.7
4.2
3.8
3.3

-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1

3.9
4.3
4.5
4.3
4.2
4.6
4.3
4.0
4.1
4.3
4.2
4.1
5.0
3.9
4.5
4.5
4.6
4.2
4.3
4.6
4.2
3.7

-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1

14,732
2,463
1,985
2,471
3,284
11,062
3,001
2,988
5,226
2,876
13,502
15,498593
22,217
3,859
1,746
2,842
8,719
5,330
4,823
14,9603,700-1,832
+126
+584
+758
-44
+337
-481
+51
-146
+1,703
+297
+701
+267
-7,817-1,169
+93
+517
-209
+479
+1,656-3,460+29

Tachikawa Business Center Bldg.

46,000

+900

2.9

-0.1

2.8

-0.1

3.0

-0.1

38,388+7,611

Benetton Shinsaibashi Bldg.

3,060
5,460
14,100
3,930
2,710
2,940
6,190
1,840
2,530
1,810
7,900
4,560

+20
+140
+200
+110
-70
-40
-130
+40
+60
+60
+100
+50

4.2
4.0
3.7
3.3
3.8
3.6
4.3
5.5
5.1
5.2
5.3
4.3

-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.1
-0.1

3.9
3.7
3.5
3.4
3.3
3.0
4.0
5.3
4.9
5.0
5.0
4.1

-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.1
-0.1

4.5
4.2
3.9
3.5
4.0
3.6
4.5
5.7
5.3
5.4
5.5
4.5

-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.1
-0.1

2,693
4,214
11,529
4,299
2,640
3,327
4,343
2,272
2,502
1,446
6,931
2,970

+366
+1,245+2,570
-369
+69
-387
+1,846
-432
+27
+363
+968
+1,589JPR Umeda Loft Bldg.

423,801
218,531
134,350
70,920+5,520+3,850+1,100+570

Properties to be acquired in 30th period
GINZA GATES
10,800FUNDE Suidobashi
3,380

-

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Building

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

Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.

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

Housing Design Center Kobe
JPR Chayamachi Building

Total
Central Tokyo
Greater Tokyo
Other Cities

Total (as of 31 Dec. 2016)

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 that serve as the standard for
calculating the value estimated by income approach based on the discounted cash flow (DCF) method.

3,320
7,640
5,970
35,6007,980
7,580
13,400
2,710
5,530
4,290
15,500
2,390
3,330
3,080
1,530
3,680
1,700
2,550
2,580
1,780
2,730
13,900

Direct cap(NCF Cap)(%)

Change(mn yen)Change(%pt)

DCF
discountrate(%)

Change(%pt)

DCF
terminal cap(%)

Change(%pt)

Book value(mn yen)

Unrealized
gain or loss
(mn yen)

2,899
5,340
5,528
27,869
6,859
5,938
7,389
1,748
7,067
3,770
13,659
1,658
4,087
2,975
1,338
2,487
1,356
2,109
2,176
1,805
3,935
10,675+420+2,299+441+7,730+1,120+1,641+6,010+961-1,537+519+1,840
+731
-757
+104
+191
+1,192
+343
+440
+403
-25
-1,205+3,224

+40
+70
+40
+300
+30
+140
+100
+30
+30
+40
+100
-10
+40
+30
+20
+20
+10
+130
+20
-

4.8
4.2
4.7
4.1
4.6
4.8
5.2
5.4
4.9
5.0
4.3
6.0
5.0
4.9
5.8
5.4
6.8
4.8
4.8
4.9
5.5
4.5

-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1

4.5
4.0
4.4
3.8
4.4
4.6
5.0
5.2
4.7
4.9
4.2
6.0
4.7
4.8
5.8
5.2
6.6
4.4
4.5
4.7
5.0
4.3

-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1

5.0
4.4
4.9
4.3
4.8
5.0
5.4
5.6
5.1
5.2
4.5
6.2
5.2
5.1
6.0
5.7
7.1
5.0
4.9
5.1
5.4
4.7

-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1

3,950

-120

4.1

-0.1

3.8

-0.1

4.2

-0.1

5,064

-1,114

14,500
6,930
6,290

+200
+20
+210

4.3
5.8
3.8

-0.1
-0.1
-0.1

4.0
5.6
3.5

-0.1
-0.1
-0.1

4.5
5.9
3.9

-0.1
-0.1
-0.1

12,4926,277
5,942+2,007+652+347

437,981

387,901 +35,899
214,980 +3,550
108,538 +25,811
64,382 +6,537

3.1
3.9

0.0
0.0

2.8
3.7

0.0
0.0

3.1
4.1

0.0
0.0

10,130
3,262

+669
+117

401,294 +36,686

3. The period-on-period changes for properties acquired in the 30th fiscal period indicates a comparison with the figures based on theappraisal values upon their acquisition (as of December 15, 2016). Furthermore, JPR Daikanyama that was sold in the 30th fiscal
period is excluded from the calculation of the period-on-period change figures.

36

4. Appendix

Sustainability

Maximize corporate value through endeavors on ESG (Environment, Social, Governance) awareness■ Governance■ Social
Corporate Philosophy of Asset Manager (TRIM)

Provide value to any of the unitholders, customers, social communities and employees by offering“professional real estate investment and management services” with good faith and responsibility• Good faith and responsibility to unitholders
Unitholders shall be able to receive rewards that are based on a healthy
profit and are generated from the value provided to the customers,
employees and social communities

Unitholders

Customers• Good faith and responsibility to customers
Each of TRIM’s officers and employees shall act as a professional with both
good faith and responsibility in the face of JPR’s unitholders, tenants, people
visiting its buildings, property management companies and financial
institutions, etc.

Employees

Value

Socialcommunities

Tenant Satisfaction Survey

Securing BCP

Comprehensive satisfaction score: 87.5 points (out of 100
points)Replay ratio of “satisfactory/somewhat satisfactory” andhigher: 97.6%(2016 survey, N=458)(point)Comprehensive satisfaction
score (average)

100

Conducted an earthquake disaster drill to speed up collection of
information on property damages, assuming an earthquakethat directly hits the Greater Tokyo area

[値]

75

• Good faith and responsibility to social communities

50

TRIM shall contribute to the evolution of the society, development of real estate finance andenhancement of urban infrastructures through its business operations, for the benefit of thelocal communities, municipalities and the country in which TRIM exists as well as thesocieties around the world.

25• Good faith and responsibility to employees
Employees shall be respected as individuals one by one, and their dignity andvalue shall be recognized

0'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16(year)■ Environment
Reduction of Energy Consumption (Revised Energy Conservation Act)(%)

Target under Revised Energy
Conservation Act

Comparison
with base year

100

95.1

DBJ Green Building

JPR has obtained “Green Star,” the highest ranking, forthree consecutive years

JPR has obtained certification for 14 properties in total

Achieved a reduction rate
far exceeding than thetarget

90
80

78.8

-16.3%pt

Actual result of comparison
with base year

70
60
0

GRESB

'10

'11

'12

'13

'14

'15

2 buildings(including Olinas Tower)

5 buildings(including JPR Sendagaya Bldg.)

7buildings(including Kanematsu Bldg. )(fiscal year)

1. The target figure (95.1%) under the Revised Energy Conservation Act represents the reduction rate against the base year in 5 years with an annual reduction of 1% year-on-year. The per-unit rate of change for the 5 fiscal years is 99.0% on average.
2. The tenant satisfaction survey is conducted each year mainly for the tenants of office properties, and shows results of surveys on comprehensive satisfaction levels in 7 areas regarding the buildings and their administration.

37

4. Appendix

Asset Manager■ Asset Manager and Sponsor■ Decision-Making Process for Property Acquisitions• The shareholding ratio of Tokyo Tatemono in TRIM increased from 40% to 52% as ofDecember 22, 2016.
• The increase is part of Tokyo Tatemono’s strategy to further reinforce its comprehensive
strengths and business portfolio.
(Asset manager)

Acquisition

The Otemachi Tower
Olinas Tower
ShinjukuCenter Bldg. TokyoSquare Garden Kanematsu Bldg.
1. Breakdown of (planned) acquisition price by acquisition pipeline (after the asset replacement) indicates the ratios of (planned) acquisition prices ofproperties acquired from sponsors, properties acquired based on information provided by sponsors and properties acquired from third parties, respectively,
to the total (planned) acquisition price after the asset replacement.
2. The acquisition pipelines are classified as follows:“Properties acquired from sponsors”: properties JPR acquired from its sponsors, etc.
“Properties acquired based on information from sponsors”: properties JPR acquired based on information it obtained from its sponsors, etc.
“Properties acquired from third parties”: properties JPR acquired from third parties other than its sponsors.
“Properties acquired through sponsor pipelines”: properties acquired from sponsors and properties acquired based on information from sponsors
3. Sponsors, etc. represent the five sponsor companies of JPR, their affiliated companies and special purpose companies (SPCs) in which the sponsors havemade equity investment. Properties developed by sponsors refer to properties developed by the sponsors, etc. and do not necessarily fall under theproperties acquired through sponsor pipelines.

Conclude agreement

Top 5 properties areeither properties
acquired from sponsor
pipelines or properties
developed by sponsor

TRIM’s Board of Directors

Decision Making Based on Stringent Processes

98.1 bn. yen（22.6%） 119.6 bn. yen（27.5%）(Top 5 properties in the portfolio (after the asset replacement;
based on the (planned) acquisition price)

Decision making on
acquisition
over certain amount

Properties acquired
other than fromsponsors

Investment Subcommittee

217.3 bn. yen（49.9%）

Properties acquired basedon information provided
by sponsors

Final decision on
acquisition

Properties acquired fromsponsors

Compliance Committee
JPR’s Board of Directors

Ratio of
取得割合
properties
acquired

Prior review /approval oftransaction withrelated parties（%）(including information provided)

315.4millionyen（72.5%）

Due diligence
subcommittee

Properties acquired using sponsor pipelines

Due diligence(Breakdown of (planned) acquisition price by acquisition pipeline(after the asset replacement))(Transaction with related parties)• Acquisition and selling of properties• Consignment of property management• Intermediary and agent of buying andselling• Order placement of construction works(costing over 10 million yen)
• Lease of properties

Investment subcommittee

Meiji Yasuda Life Insurance

The Compliance Committee examines
the adequacy and rationality of thefollowing transactions.

Decision on
acquisition policy

Taisei Corporation
Sompo Japan Nipponkoa Insurance

Compliance subcommittee

Yasuda Real Estate

Review, screening

18%
10%
10%
10%

Invest management department

Tokyo Tatemono

Proposal, planning52%• An outside attorney is appointed as a special member of the Compliance Committee andexamines and verifies the adequacy and rationality of transactions at the Committee.
• Upon implementing the approved transactions, approval by JPR’s board of directors,
comprising directors who are dependent from the shareholders of TRIM, must be obtainedin advance.

■ Remuneration System of the Asset Manager• Employing a management fee system that matches unitholder’s interests andbenefits of the asset management company
Item

Calculation of Compensation

Results ofRemuneration(30th Period)

Share

Fixed fee

12.5 million yen per month

75 million yen

13.3%

Incentive Fee 1

2% of JPR’s total revenue(1.5% for 8 billion yen or higher)

266 million yen

47.2%

190 million yen

33.7%

33 million yen

5.9%

Incentive Fee 2
Incentive Fee 3

3% of JPR’s income before income taxes(income before income taxes before
deducting Incentive Fee 2)
0.25% of the acquisition price upon new
acquisition38

4. Appendix

Office Property Leasing Market

Net Increase in Leasable Floor Area, Strong Demand and Impact on Vacancy Rate
■ Changes in New Supply/Demand Area, Leasable Floor Area and Vacancy Rate
(Tokyo CBDs)

Comparison of increases in new supply area and leasable floor area
+400

• New demand has remained strong, surpassing the increase in leasable floor area by
volume+300

Net increase in leasable floor area

New demand

Up 0.87 mn. tsubo

+100
+0

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 (year)

Vacancy rate（%）

（Vacancy rate: right axis, Others: left axis, New demand: actual number)(thousand tsubo)

The increase in leasable floor area is lower by more than half of
the increase in new supply area
Up 2.00 mn. tsubo+200• Employed population is on an upward trend, leading new demand.
Increase in labor participation ratio, primarily by females and elderly people, ispromoted by political initiatives and is likely to continue over the medium term.
New supply

Amount of increase in new supply area
Amount of increase in leasable floor area

（10 thousand tsubo)• Net increase in leasable floor area (in stock) over the new supply area is small.

15

300

Comparison of increases in leasable floor area and occupied area
(10 thousand tsub)

Net increase in leasable floor

+200
+150

Increase in occupied area

The increase in occupied area is larger than the increase inleasable floor area.
Up 1.00 mn. tsubo

+100

200

9.0

10

8.7
7.3

Up 0.87 mn. tsubo+50+0'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 (year)

5.5
4.0

100

5

3.6

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

125
120
115

0

2011

2012

2013

2014

2015

2016

2017

2018

2019

(forecast)(forecast)(forecast)02020 (year)(forecast)

1. Actual results of the vacancy rate, leasable floor area and occupied area through June 2016 are based on the Office Report (Tokyo CBDs) by Miki Shoji Co., Ltd. New supply, newdemand and loss areas as well as the leasable floor area and vacancy rate in 2017 and thereafter have been estimated based on surveys and simulations conducted by TRIM.
2. As an assumption for the simulation, the new supply area uses a conservative estimate obtained by applying a certain multiplying factor to the average of the past results. The
lost area is based on the average of the past results as assumption.
3. The employed population was prepared by TRIM based on the Labor Force Survey, the Ministry of Internal Affairs and Communications. The working population refers to thenumber of people who are willing to and able to work. Employed population = working population x (1- unemployment rate)

Employed population

Male

FemaleOccupied area

Occupied area is increasing presumably in sync with thesteady increase in employed population
Demand is led by the increasing labor participation ratioof females

120.5pt

113.9pt

110113.1pt

105109.3pt

100

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

(year)

39

4. Appendix

For-Sale Office Property Market

Cap rate stayed almost flat for grade A office properties in Tokyo but further dropped for grade B
properties■ Correlation between Price and Rent of Grade A Office
Properties in Tokyo■ Cap Rates of Office Properties in Tokyo• Although cap rate dropped in 2016, the figure for grade A office properties stayed almost
flat at the bottom.
Grade A：2.95%（year on year: minus 0.05%pt）, grade B：3.60%（year on year; minus
0.20%pt）• Cap rate fell below the peak in 2007 and continues to drop further.

Grade A office properties（%）

Grade B office properties• Rent increased 17.9 points from the bottom in 2012 while price rose 74.6 points from2010 by index（pt・’02Q1=100）

6.0

Rent index

Price index

300

5.5
250
5.0
200

4.5
Last peak for grade B officeproperties

4.0
3.5

Last peak for grade A officeproperties

150

Price index

up 74.6 point

100

Rent index+up 17.9 point

3.0

1. Prepared by TRIM based on reports publicized by Jones Lang LaSalle K.K

0
50
'02Q1
'02Q3
'03Q1
'03Q3
'04Q1
'04Q3
'05Q1
'05Q3
'06Q1
'06Q3
'07Q1
'07Q3
'08Q1
'08Q3
'09Q1
'09Q3
'10Q1
'10Q3
'11Q1
'11Q3
'12Q1
'12Q3
'13Q1
'13Q3
'14Q1
'14Q3
'15Q1
'15Q3
'16Q1
'16Q3

'16Q3

'16Q1

'15Q3

'15Q1

'14Q3

'14Q1

'13Q3

'13Q1

'12Q3

'12Q1

'11Q3

'11Q1

'10Q3

'10Q1

'09Q3

'09Q1

'08Q3

'08Q1

'07Q3

'07Q1

2.50

40

4. Appendix

Unitholders (as of December 31, 2016)■ Number of Units by Unitholder Type (873,000 units in total)
Individuals
34,181
4%

Securities
companies
18,9802%

Other domestic
corporations
81,8519%Foreigninvestors
201,308
23%

Unitholder

Financial
institutions
536,68062%
Of which, investment
trusts incorporating
JPR units266,658
33%■ Number of Unitholders by Unitholder Type (11,177 unitholders in total)
Other domestic
corporations
204
2%■ Top Unitholders

Foreign investors
402
4%

Securities
companies
210%

No. of units

Share (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

202,295

23.2

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

81,7899.4

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

64,329

7.4

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

32,259

3.7

Tokyo Tatemono Co., Ltd.

29,300

3.4

Kawasaki Gakuen

25,0002.9

Meiji Yasuda Life Insurance Company

24,0002.7

State Street Bank West Client Treaty 505234

20,7702.4

State Street Bank West Pension Fund Clients Exempt 505233

15,491

1.8

State Street Bank and Trust Company 505012

10,365

1.2

505,598

57.9

Total

Financial institutions
151
1%
Of which, investment
trusts incorporating
JPR units
31
0%

Individuals
10,39993%

41

4. Appendix

Investment Unit Price and Yield■ Changes in JPR Unit Price(yen/unit)

500,000JPR
TSE REIT Index
Average of J-REITs with comprehensive or combined portfolio (reference for comparison)
Average of J-REITs specialized in office properties (reference for comparison)(indexed with June 17, 2015 as the base date for J-REITs other than JPR)

450,000

400,000

350,0000
300,000
Jun'15

Jul'15

Aug'15

Sep'15Oct'15

Nov'15

Dec'15Jan'16

Feb'16 Mar'16

Apr'16May'16

Jun'16

Jul'16

Aug'16

Sep'16Oct'16

Nov'16

Dec'16 (month, year)■ Changes in JPR Dividend Yield and Spread
（%pt）

0.8

Yield spread of J-REITs specialized in office properties (reference for comparison) (left axis)
Yield spread of J-REITs with comprehensive or combined portfolio (reference for comparison) (left axis)
JPR （right axis)

0.6
0.4
0.2
0.0
-0.2
-0.4

（%）

3.8
3.6
3.4
3.2
3.0
2.8

-0.6

2.6

-0.8
Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17

2.4

1. Prepared by TRIM based on Bloomberg data.
2. For J-REITs specialized in office properties (reference for comparison), the average value of the investment units of 2 J-REITs which TRIM picks as reference in comparing investment unit price and yield spread is indicated. Similarly, for J-REITs with comprehensive or combined portfolio(reference for comparison), the average value of the investment units of 4 J-REITs which TRIM picks as reference is indicated.

(month, year)42

4. Appendix

Portfolio Map■Central Tokyo

Shinjuku

Ichigaya

A- 4

A-14

SaitamaPrefecture

A-5
A-9

A-12
A-24

B-6

Chiyoda Ward

B-1

Tokyo

A-1

A-21

A-2

A-8

Shibuya Ward

A-19

A-5

Harajuku

A-22

A-13

B-9

TanashiB-8

Ikebukuro

A-18

Tokyo Tatemono Yokohama Building

B-13

Omiya Prime East

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

Yokohama

B-5

Musashiurawa Shopping Square

B-3

B-6

Kawasaki Dice 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.

Kawasaki

Chiba

B-6

B-5

A-15

Shin-Yokohama
B-12

Tamachi
B-10

Tachikawa Business Center Bldg.

Olinas Tower

ShibuyaB-4

Kanagawa
Prefecture

JPR Ueno East Bldg.

B-8

B-12

Kinshicho

Musashikosugi

Hamamatsucho

Kawaguchi Center Bldg.

B-7

B-11

B-1

ShinagawaA-25

Shinyokohama 2nd Center Bldg.

B-6

Rise Arena Bldg.

Tokyo

Chuo Ward

Shibuya

JPR Yokohama Nihon Odori Bldg.

B-5

B-11

B-2

Minato Ward

JPR Chiba Bldg.

B-3

Yume-ooka Office Tower

A-6

Shinbashi

Arca East

B-2

B-10

Tokyo

A-3

A-1

B-7

B-1

B-9

Shinjuku

Tachikawa

Chiba
Prefecture

B-3

Kawaguchi

A-23
A-3

A-17

B-5

Musashiurawa

A-20

A-4

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

B-13

Omiya

A-7

Shinjuku Ward
A-11

■Greater Tokyo

Chiyoda, Chuo, Minato, Shinjuku, Shinagawa
and Shibuya Wards

KamiokaA-6■Other Cities
GotandaShinagawa

A-7

A-16
A-10

OhsakiShinagawa Ward

C-4

Tokyo Tatemono Honmachi Bldg.

C-17

JPR Dojima Bldg.

C-21

Benetton Shinsaibashi Bldg.

C-1

JPR Umeda Loft Bldg.

C-5

JPR Chayamachi Bldg.
SendaiA-1

Kanematsu Bldg.

A-12

BYGS Shinjuku Bldg.

A-23

The Otemachi Tower (Land with Leasehold Interest)

C-7

JPR Hakata Bldg.

A-2

Kanematsu Bldg. Annex

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

C-14

Tenjin 121 Bldg.

A-3

JPR Ningyo-cho Bldg.

A-14

Shinjuku Center Building

A-25

Shibadaimon Center Bldg.

C-18

JPR Hakata-chuo Bldg.

A-4

Shin-Kojimachi Bldg.

A-15

Minami Azabu Bldg.

A-1

JPR Shibuya Tower Records Bldg.

C-20

Yakuin Business Garden

A-5

JPR Crest Takebashi Bldg.

A-16

Shinagawa Canal Bldg.

A-3

JPR Jingumae 432

A-6

MS Shibaura Bldg.

A-17

Rokubancho Building

A-4

Shinjuku Sanchome East Bldg.

A-7

Gotanda First Bldg.

A-18

JPR Harajuku Bldg.

A-5

Yurakucho Ekimae Building (Yurakucho Itocia)

A-8

Fukuoka Bldg.

A-19

Tokyo Tatemono Kyobashi Building

A-9

JPR Ichigaya Bldg.

A-20

JPR Nihonbashi-horidome Building

A-10

Oval Court Ohsaki Mark West

A-21

JPR Sendagaya Bldg.

A-11

Shinjuku Square Tower

A-22

Ginza Sanwa Bldg.

Niigata
NagoyaKobe

Fukuoka

Osaka
Wakayama
Naha

Acquired in 30th

A-6

GINZA GATESA-7

FUNDES Suidobashi

Acquire in 31st (plan)

A-22

Tokyo Square Garden

1. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

43

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−23 The Otemachi Tower (Land with Leasehold Interest)① Chuo-ku① Chuo-ku① Chuo-ku① Chiyoda-ku② S・RC・SRC B2/13F② SRC B1/8F② SRC・RC B1/8F② SRC B1/9F③ Feb. 1993

③ Feb. 1993

③ Dec. 1989

③ Oct. 1984

④ 14,995m2④ 4,351m2④ 4,117m2④ 5,152m2

2

2

2⑤ 3,258m2⑤ 11,906m⑤ 3,455m⑤ 4,117m⑥ 79.4%⑥ 79.4%⑥ 100.0%⑥ 77.2%(87.4%)⑦ Dec. 2001

⑦ Dec. 2001

⑦ Nov. 2001

⑦ Nov. 2001 etc.

⑧ 16,276 mn yen⑧ 2,874 mn yen⑧ 2,100 mn yen⑧ 2,420 mn yen

A−5 JPR Crest Takebashi Bldg.

A−6 MS Shibaura Bldg.

A−7 Gotanda First Bldg.

A−8 Fukuoka Bldg.

① Chiyoda-ku① Minato-ku① Shinagawa-ku① Chuo-ku② SRC B1/9F② SRC・RC・S B2/13F② SRC・RC B2/11F② SRC B2/10F③ Sep. 1999

③ Feb. 1988

③ Jul. 1989

③ May. 1990

④ 4,790m2④ 31,020m2④ 10,553m2④ 11,627m2⑤ 4,790m2⑤ 15,439m2⑤ 4,035m2⑤ 2,020m2⑥ 100.0%⑥ 58.0%⑥ 59.6%⑥ 26.2%⑦ Jun. 2002

⑦ Mar. 2003

⑦ Jul. 2003

⑦ Oct. 2003 etc.

⑧ 4,000 mn yen⑧ 11,200 mn yen⑧ 2,920 mn yen⑧ 2,920 mn yen

A−14 Shinjuku Center Building

A−9 JPR Ichigaya Bldg.

A−10 Oval Court Ohsaki Mark WestA−11 Shinjuku Square Tower① Chiyoda-ku②−③ Apr. 2014
11,034㎡④(ground area)

11,034㎡(ground area)⑥ 100%⑤⑦ Mar. 2012
⑧ 36,000 mn yen

A−12 BYGS Shinjuku Bldg.

① Chiyoda-ku① Shinagawa-ku① Shinjuku-ku① Shinjuku-ku② SRC B1/9F② S・SRC B2/17F② S・RC・SRC B4/30F② SRC B2/14F③ Mar. 1989

③ Jun. 2001

③ Oct. 1994

③ Apr. 1985

④ 5,888m2④ 28,576m2④ 78,796m2④ 25,733m2⑤ 5,888m2⑤ 4,024m2⑤ 18,933m2⑤ 25,733m2⑥ 100.0%⑥ 23.9%⑥ 67.4%⑥ 100.0%⑦ May. 2004

⑦ Jun. 2004

⑦ Jul. 2004 etc.

⑦ Nov. 2004 etc.

⑧ 5,100 mn yen⑧ 3,500 mn yen⑧ 14,996 mn yen⑧ 15,121 mn yen

A−13 Across Shinkawa Bldg. Annex

A−15 Minami Azabu Bldg.

(entire redevelopment area)

A−16 Shinagawa Canal Bldg.

A−17 Rokubancho Building① Chuo-ku① Minato-ku① Minato-ku① Chiyoda-ku② S・SRC B2/10F② S 9F② S B1/8F② SRC B3/7F③ Jun. 1994

③ Jun. 1992

③ Jul. 2008

③ Oct. 1991

④ 5,535m2④ 4,570m2④ 5,216m2④ 4,205m2⑤ 1,233m2⑤ 4,570m2⑤ 1,677m2⑤ 4,205m2① Shinjuku-ku⑤ 8,172m2⑥ 35.5%⑥ 100.0%⑥ 45.6%⑥ 100.0%② SRC・RC・S B5/54F⑥ 8.6%⑦ Nov. 2004

⑦ Jul. 2008

⑦ Dec. 2008

⑦ Dec. 2009

③ Oct. 1979

⑦ Mar. 2008

⑧ 710 mn yen⑧ 3,760 mn yen⑧ 1,870 mn yen⑧ 2,800 mn yen④ 176,607m2⑧ 21,000 mn yen

1. The property overview indicates (1) location, (2) structure/floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8) acquisition
price. The same applies hereafter.

44

4. Appendix

Portfolio List （Central Tokyo）

A−18 JPR Harajuku Bldg.

A−19 Tokyo Tatemono Kyobashi Building

A−20 JPR Nihonbashi-horidome Building① Shibuya-ku① Chuo-ku② SRC B1/10F② SRC B1/9F② S 8F② SRC B2/9F③ Jan. 1981

③ Jun. 2002

③ May. 2009

③ Oct. 1982

④ 4,420m2④ 7,190m2④ 7,683m2④ 8,851m2⑤ 4,419m2⑤ 7,190m2⑤ 7,683m2⑤ 2,042m2⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 26.6%⑦ Feb. 2010

⑦ Mar. 2010

⑦ May. 2010

⑦ Aug. 2011

⑧ 5,250 mn yen⑧ 5,100 mn yen⑧ 15,050 mn yen⑧ 3,400 mn yen

A−25 Shibadaimon Center Bldg.

① Chiyoda-ku① Minato-ku② S・SRC・RC B2/12F② S・SRC B1/10F③ Feb. 1995

③ Jul. 1993

④ 24,560m2④ 11,419m2⑤ 3,213m2⑤ 5,285m2① Shibuya-ku⑤ 6,466m2⑥ 22.4%⑥ 65.4%② SRC B1/9F⑥ 100.0%⑦ Dec. 2013

⑦ Dec. 2013 etc.

③ Mar. 1989

⑦ Dec. 2009

⑧ 2,660 mn yen⑧ 4,220 mn yen④ 6,466m2⑧ 8,400 mn yen① Shibuya-ku

A−22 Ginza Sanwa Bldg.

① Chuo-ku

A−24 Science Plaza - Yonbancho PlazaA−1 JPR Shibuya Tower Records Bldg.

A−21 JPR Sendagaya Bldg.

① Chuo-ku

A−3 JPR Jingumae 432

Aｰ26 Tokyo Square Garden

Aｰ6 GINZA GATES① Shibuya-ku② SRC・S B3/8F② S・SRC B1/7F③ Feb. 1992

③ Feb. 2006

④ 8,449m2④ 1,066m2⑤ 8,449m2⑤ 1,066m2⑥ 100.0%⑥ 100.0%⑦ Jun. 2003

⑦ Mar. 2006

⑧ 12,000 mn yen⑧ 4,275 mn yen① Chuo-ku② SRC B4/24F③ Feb. 2013
④ 112,645㎡⑤ 9,259㎡⑥ 8.22%⑦ Feb. 2017 etc.
⑧ 18,400 mn yen(50% acquired on Feb. 1, 2017, remaining portion of 50% to be acquired on Apr. 4, 2017)

A−4 Shinjuku Sanchome East Bldg.

Aｰ7 FUNDES Suidobashi

A−5 Yurakucho Ekimae Building (Yurakucho Itocia)① Shinjuku-ku① Chiyoda-ku② S・SRC・RC B3/14F② S-SRC B4/20F③ Jan. 2007

③ Oct. 2007

④ 24,617m2④ 71,957m2⑤ 2,328m2⑤ 1,087m2⑥ 12.5%⑥ 1.9% (2.1%)⑦ Mar. 2007 etc.

⑦ Aug. 2008

⑧ 2,740 mn yen⑧ 3,400 mn yen① Chuo-ku② S 11F③ Jun. 2008
④ 1,821㎡⑤ 1,821㎡⑥ 100.0%⑦ Dec. 2016
⑧ 10,100 mn yen① Chiyoda-ku② S 9F③ Jul. 2015
④ 1,477㎡⑤ 1,477㎡⑥ 100%⑦ Dec. 2016
⑧ 3,250 mn yen

45

4. Appendix

Portfolio List（Greater Tokyo）

B−1 Arca East

B−2 JPR Chiba Bldg.
① Sumida-ku

B−3 JPR Yokohama Nihon Odori Bldg.

B−5 Shinyokohama 2nd Center Bldg.

B−6 Kawaguchi Center Bldg.
① Kawaguchi, Saitama① Chiba, Chiba① Yokohama, Kanagawa① Yokohama, Kanagawa③ Mar. 1997

② S・SRC B1/13F② SRC B1/11F② S・SRC B2/12F③ Feb. 1994

④ 34,281m2③ Jan. 1991

③ Oct. 1989

③ Aug. 1991

④ 28,420m2⑤ 6,911m2④ 9,072m② S・SRC B3/19F

2④ 9,146m

2④ 7,781m⑥ 38.3%⑤ 9,072m2⑤ 9,146m2⑤ 7,781m2⑦ Nov. 2001

⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Feb. 2004

⑧ 5,880 mn yen⑦ Dec. 2001

⑦ Nov. 2001

⑦ Sep. 2002 etc.

⑧ 8,100 mn yen⑧ 2,350 mn yen⑧ 2,927 mn yen⑧ 1,490 mn yen

B−11 Olinas Tower

B−7 JPR Ueno East Bldg.

B−8 Tachikawa Business Center Bldg.

2② S・SRC B2/15F⑤ 15,401m2⑥ 86.5%

B−9 Rise Arena Bldg.

B−10 Yume-ooka Office Tower① Taito-ku① Tachikawa, Tokyo① Toshima-ku② S・SRC B1/8F② S・SRC B1/12F② RC・SRC・S B3/42F③ Oct. 1992

③ Dec. 1994

③ Jan. 2007

2

2

① Yokohama, Kanagawa② S・SRC・RC B3/27F③ Mar. 1997

2

④ 14,706m⑤ 8,490m2⑤ 4,812m2⑤ 5,972m2⑥ 100.0%⑥ 47.9%⑥ 25.2%⑤ 14,196m2⑦ Mar. 2004

⑦ Sep. 2005 etc.

⑦ Mar. 2007

⑥ 48.8%⑧ 3,250 mn yen⑧ 3,188 mn yen⑧ 5,831 mn yen⑦ Jul. 2007

④ 8,490m④ 91,280m④ 185,976m2⑧ 6,510 mn yen

B-12 Tokyo Tatemono Yokohama Building

B−13 Omiya Prime East

① Yokohama, Kanagawa① Saitama, Saitama② SRC B1/9F② S 9F③ May. 1981

③ Feb. 2009

④ 8,772m2④ 9,203m2⑤ 23,692m2⑤ 8,772m2⑤ 9,203m2② SRC・RC・S B2/45F⑥ 23.3%⑥ 100.0%⑥ 100.0%③ Feb. 2006

⑦ Jun. 2009

⑦ Dec. 2010

⑦ Mar. 2013

④ 257,842m2⑧ 31,300 mn yen⑧ 7,000 mn yen⑧ 6,090 mn yen① Sumida-ku

B−1 Tanashi ASTA

B−3 Cupo-la Main Bldg.

B−4 JPR Musashikosugi Bldg.

① Nishitokyo, Tokyo① Kawaguchi, Saitama② SRC B2/17F② S・RC・SRC B2/10F③ Feb. 1995

③ Jan. 2006

② SRC・RC・S B1/6F④ 80,675m2④ 48,321m2③ Mar. 1983

⑤ 20,727m2⑤ 5,870m2⑥ 43.6%（51.3%）⑥ 16.7%(19.2%)⑤ 18,394m2⑦ Nov. 2001

⑦ Mar. 2006

⑥ 100.0%⑧ 10,200 mn yen⑧ 2,100 mn yen⑦ Sep. 2006

① Kawasaki, Kanagawa④ 18,394m2⑧ 7,260 mn yen

B−5 Musashiurawa Shopping Square

B−6 Kawasaki Dice Bldg.

① Saitama, Saitama① Kawasaki, Kanagawa② S B1/4F② S・SRC・RC B2/11F③ Oct. 2005

③ Aug. 2003

④ 28,930m2④ 36,902m2⑤ 14,465m2⑤ 13,925m2⑥ 50.0%⑥ 46.6%⑦ Mar. 2007

⑦ Apr. 2007

⑧ 4,335 mn yen⑧ 15,080 mn yen

46

4. Appendix

Portfolio List （Other Cities）

C−1 Niigata Ekinan Center Bldg.

C−4 Tokyo Tatemono Honmachi Bldg.

C−7 JPR Hakata Bldg.

① Osaka, Osaka① Niigata, Niigata

C−9 JPR Naha Bldg.
① Fukuoka, Fukuoka② S・SRC B1/10F② SRC B3/9F② S・RC B1/12F, S1F③ Mar. 1996

③ Feb. 1970

③ Jun. 1985

④ 19,950m2④ 14,619m2④ 9,828m2⑤ 5,444m2⑤ 7,709m2⑤ 9,828m2⑥ 32.9% (58.0%)⑥ 72.0% (71.0%)⑥ 100.0%⑦ Nov. 2001

⑦ Nov. 2001

⑦ Nov. 2001

⑧ 2,140 mn yen⑧ 4,150 mn yen⑧ 2,900 mn yen

C−13 Sompo Japan Wakayama Bldg.

C−14 Tenjin 121 Bldg.

C−17 JPR Dojima Bldg.

C−12 Sompo Japan Sendai Bldg.
① Naha, Okinawa① Sendai, Miyagi② SRC・S 12F② SRC B1/12F③ Oct. 1991

③ Dec. 1997

④ 5,780m2④ 10,783m2⑤ 5,780m2⑤ 10,783m2⑥ 100.0%⑥ 100.0%⑦ Nov. 2001

⑦ Jun. 2002

⑧ 1,560 mn yen⑧ 3,150 mn yen

C−18 JPR Hakata-chuo Bldg.

C−19 JPR Nagoya Fushimi Bldg.

Wakayama,①
Wakayama① Fukuoka, Fukuoka① Osaka, Osaka① Fukuoka, Fukuoka① Nagoya, Aichi② S 9F② S・SRC 13F② SRC B2/9F② SRC 8F

② SRC B1/9F③ Jul. 1996

③ Jul. 2000

③ Oct. 1993

③ Feb. 1993

③ Mar. 1991

④ 6,715m2④ 8,690m2④ 5,696m2④ 3,874m2④ 10,201m2⑤ 6,715m2⑤ 3,117m2⑤ 5,696m2⑤ 3,874m2⑤ 10,201m2⑥ 100.0%⑥ 52.2%⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Jun. 2002

⑦ Jun. 2002

⑦ Jan. 2004

⑦ Jun. 2004

⑦ Mar. 2005

⑧ 1,670 mn yen⑧ 2,810 mn yen⑧ 2,140 mn yen⑧ 1,920 mn yen⑧ 4,137 mn yen

C−20 Yakuin Business Garden

C−3 Benetton Shinsaibashi Bldg.
① Osaka, Osaka② S B2/10F③ Feb. 2003
④ 5,303m2⑤ 5,303m2⑥ 100.0%⑦ May. 2005
⑧ 5,430 mn yen

C−1 JPR Umeda Loft Bldg.

C−4 Housing Design Center Kobe

C−5 JPR Chayamachi Bldg.

① Osaka, Osaka① Kobe, Hyogo① Osaka, Osaka② SRC B1/8F② SRC･S B2/11F② S・SRC 9F③ Apr. 1990

③ Jun. 1994

③ Jun. 1994

④ 17,897m2④ 33,877m2④ 3,219m2① Fukuoka, Fukuoka⑤ 22,286m2⑤ 17,897m2⑤ 33,877m2⑤ 3,219m2② SRC 14F

⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 100.0%③ Jan. 2009⑦ Aug. 2012

⑦ May. 2003 etc.

⑦ Sep. 2005

⑦ Aug. 2006

④ 22,286m2⑧ 10,996 mn yen⑧ 13,000 mn yen⑧ 7,220 mn yen⑧ 6,000 mn yen

1. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

47

4. Appendix

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

Having expanded IR information by adding a variety of contents, JPR provides information in atimely manner
8955
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

Digest of Financial Results• [Digest of Financial Results]
Provides movie that summarizes the latest analyst
meeting in a compact manner• [IR Mail Delivery Service]
Distribution of News Release48