30th
Report on Operating and Management Results
Thirtieth Fiscal Period Semi-Annual Report
July 1, 2016 – December 31, 2016

Japan Prime Realty Investment Corporation

GINZA GATESDetermined Cash Distribution
The 30th fiscal period ended December 2016

¥7,048
Forecast Cash Distribution (reference)
The 31st fiscal period ending June 2017

¥7,140The 32nd fiscal period ending December 2017

¥7,200Contents
JPR at a Glance

1

Message to Our Unitholders

2

Account Highlights

3

Message from Asset Manager

4

Internal Growth Strategy

8

External Growth Strategy

9

Financial Strategy

10

Initiatives on Governance11

Portfolio Status

12

Overview of Portfolio Properties

14

Initiatives on Environmental Friendliness

31

Structure and History of JPR

32

Overview of Asset Manager

33

Asset Management Report

34

Financial Statements

56(1) Balance Sheets

56(2) Statements of Income andRetained Earnings

58(3) Statements of Changes inUnitholders’ Equity

59(4) Statements of Cash Distributions

60(5) Statements of Cash Flows61(6) Notes to Financial Statements

62(7) Detailed Schedules

71(8) Independent Auditor’s Report75(9) Other Notes (Information only)76

Investor Information

77

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

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

No. of Properties and Size

63 properties 421.4 billion yen
Investment Ratio by Area
Tokyo:

83.6% Other Cities: 16.4%
Investment Ratio by Asset Class

Office:74.8%

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

Retail:

25.2%

LTV

43.7%
Ratio of Long-Term, Fixed Interest Rate Debts

96.3%
Issuer Rating

AA- (R&I)
Sponsors
JPR makes the best of the comprehensive capabilities in
the real estate, construction and finance areas of the 5sponsors led by Tokyo Tatemono together with Yasuda
Real Estate, Taisei Corporation, Sompo Japan
Nipponkoa Insurance and Meiji Yasuda Life Insurance.

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

A (S&P)

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

324.9 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

1Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko

Executive Officer

Nobuhisa Kusanagi

Supervising Officer

Masato Denawa

Supervising Officer(From left to right) Nobuhisa Kusanagi, Hirohito Kaneko and Masato Denawa

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 30th fiscal period (July 1, 2016 – December 31, 2016) at the end of December
2016, we renew our cordial appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio over the
medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

2

Japan Prime Realty Investment Corporation

Account Highlights
Distribution per unit for the 30th fiscal period ended December 31, 2016 came to 7,048 yen, marking thesixth straight fiscal period with a period-on-period increase.
The upward trend will continue for the 31st fiscal period ending June 2017 and the 32nd fiscal period ending
December 2017, as JPR forecasts distribution per unit of 7,140 yen (31st fiscal period) and 7,200 yen (32ndfiscal period).

Distribution per Unit(yen/unit)

7,500
Forecast cash distribution

Determined cash distribution

7,140

Determined cash distribution (current (30th) fiscal period)

7,048

Forecast cash distribution (next (31st) fiscal period)
7,000

6,756
6,588
6,500

6,351
6,006

7,200
(Forecast)

7,000

6,630

6,360

6,150
6,000

6,419 6,510(Forecast)

6,180
6,050

5,800
5,500

0
24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)

32nd Period(Dec. 2017)

Operating Results
24th Period
ended
Dec. 2013

25th Period
ended
Jun. 2014

26th Period
ended
Dec. 2014

27th Period
ended
Jun. 2015

28th Period
ended
Dec. 2015

29th Period
ended
Jun. 2016

30th Period
ended
Dec. 2016

Operating revenue(million yen)

13,591

13,734

13,902

14,251

14,105

14,246

15,105

Ordinary income(million yen)

4,899

5,073

5,239

5,566

5,746

5,897

6,153

Net income(million yen)

4,954

5,072

5,238

5,603

5,749

5,896

6,152

Unitholders’ equity
per unit(yen)

238,903

239,046

239,246

247,529

247,696

247,862

248,1543

Message from Asset Manager

Satoshi Okubo

President and Chief Executive Officer (CEO)Tokyo Realty Investment Management, Inc.
(TRIM)

I sincerely appreciate the support you have extended to Japan Prime Realty Investment Corporation (JPR).
JPR has settled the accounts for its 30th fiscal period, a milestone, in good shape. Let me report on theoperating and management results of JPR for the fiscal period, plus the latest property acquisition andissuance of investment units through public offering conducted after entering the 31st fiscal period.

In the 30th fiscal period, steady internal growth allowed JPR to achieve a period-on-period
increase in cash distributions for the sixth straight period.
Moreover, decisions were made to acquire three blue-chip properties that were relatively
newly built and located in Central Tokyo, amounting to 31.7 billion yen in total, by utilizing
the sponsor pipelines.
In addition, we endeavored to further reinforce JPR’s portfolio, with issuance of new
investment units through public offering in January 2017, establishing a strong and solid basefor stable growth.

4

Japan Prime Realty Investment Corporation

1

Financial Results of the 30th Fiscal Period Ended December 2016

The 30th fiscal period was another period with goodfinancial results for JPR. Cash distribution per unit came
to 7,048 yen, or up 292 yen from the 29th fiscal period,
marking the sixth straight period with an increase overthe preceding period.
The period-on-period increase was achieved primarily
through steady internal growth. A higher occupancy rate
based on generated rents, more cases of contract renewal
with upward revision of rents, and raising of rents upontenant replacement contributed to the increase, among
other factors.

2❚❚ Cash distribution per unit: ¥7,048(up ¥292 period-on-period)❚❚ Achieved a period-on-period increase in cash
distributions for 6 straight periods❚❚ Growth rate: 5.5%
(annualized figure for the 24th fiscal period andthereafter)

Acquisition of Blue-Chip Properties in Central Tokyo

Amid a severe environment for property acquisitions, we made decisions to acquire blue-chip properties that are
relatively newly built and located in Central Tokyo (three properties totaling 31.7 billion yen) by utilizing the sponsor
pipelines. Looking ahead, JPR will continue vigorously selective investments with a focus on the quality of properties.

■■Tokyo Square Garden❚❚ Acquired a large-scale office property developed by the main sponsor❚❚ Located in the area in front of Tokyo Station, where a transformation into
one of the best business districts in Tokyo is under way❚❚ Features high quality and a large size, boasting a floor plate of more than
1,000 tsubos
JPR acquired the property, a blue-chip property that is seldom available on themarket, by exerting its strength of having established strong sponsor pipelines.
Acquisition date
Acquisition Price
Location

February 1, 2017 (50%) / April 4, 2017 (50%) (scheduled)¥18,400 million (planned)
Kyobashi 3-chome, Chuo-ku, Tokyo■■GINZA GATES❚❚ Acquired an urban retail property in Namiki-dori street in Ginza, one of
the most prominent brand streets in Japan, from the main sponsor.
The impression of the entire building as well as the large size with a floor of 40 to 50
tsubos attracts high demand from brand shops, etc. This allows expectations for rents
higher than the market level, making the property attractive for JPR.

Acquisition date
Acquisition Price
Location

December 15, 2016
¥10,100 million
Ginza 5-chome, Chuo-ku, Tokyo

5

Message from Asset Manager■■FUNDES Suidobashi❚❚ Acquired the first property of the FUNDES series, which are urban retailproperties developed by the main sponsor.
The property, a concept-oriented retail building, has high scarcity value and is highly
competitive as it has a floor space that is a suitable size matching the needs of opening
stores.
Acquisition date

December 15, 2016

Acquisition Price¥3,250 million

Location

3

Misakicho 2-chome, Chiyoda-ku, Tokyo

Issuance of New Investment Units through Public Offering

In association with the acquisition of Tokyo Square Garden, JPR issued new investment units through public offeringin an effort to reinforce its financial base.
Date of resolution of issuance

Number of units newly issued

Total offering amountJanuary 6, 2017

50,000 units

21,257 million yen*The investment units newly issued consist of 47,600 units via primary offering and 2,400 units through secondary offering with an over-allotment option.

■■Significances
1. Establish a strong and solid portfolio through focused investments in blue-chip properties❚❚ Acquisition of co-ownership interest in Tokyo Square Garden
Conducted focused investment of 31.7 billion yen (combined with the already-acquired two properties) in an relatively newly built
property in Central Tokyo❚❚ Establishment of a strong and solid portfolio through asset replacement
Reinforced the portfolio by selling low-yielding properties or properties generating concerns about their future competitivenessRatio of Tokyo in the portfolio

Ratio of large-scale office properties+1.4 percentage points+3.1 percentage points

Unrealized gains

Average building age+3.0 billion yen-1.3 years

2. Establish a strong and solid financial base by stably controlling LTV❚❚ Continue a flexible investment stance by taking advantage of debt procurement capacity for property acquisitions❚❚ Maintain a strong and solid financial baseContinue stable financial management by controlling LTV at 45% or lower as a target for the moment

6

LTV

Acquisition capacity (assuming LTV at 45%)

40.8% (-1.3 percentage points)

34.3 billion yen (+12.0 billion yen)Japan Prime Realty Investment Corporation

3. Establish a strong and solid base for stable growth by working to increase NAV per unit❚❚ Work to increase NAV per unit and distribution per unit by reducing the impact of dilution❚❚ Expand acquisition capacity and endeavor to further increase cash distributions through new acquisitions(reinforcement of a base for stable growth)
NAV per unit

Distribution per unit (DPU)

286,099 yen (+12,203 yen)

Aim to achieve growth of DPU to surpassthe record high since listing of JPR*Figures indicating the effects of the public offering are assumptions made upon preparing the plan.

Actual Results and Forecast of Cash Distribution per Unit
Growth to 6,500 yen

Growth to 7,000 yen

Growth to surpass record highsince listing(yen/unit)

7,500

7,250

Highest since listing:
7,122 yenfor the 13th Period (Jun. 2008)

7,048

7,200

7,140

7,000

6,756
6,750

Aim to achieve further growth of DPU
by steadily implementing growth strategies

6,588
6,500

6,419

6,351

Growth rate of cash distributions:

6,250

6,000

0

4

6,150
6,006

24th Period(Dec. 2013)

5.5 %(actual results for the 24th fiscal period and thereafter; annualized)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)(forecast)

32nd Period(Dec. 2017)(forecast)

Asset Management for the 31st Fiscal Period Ending June 2017 and Thereafter

The office property leasing market continues to see strong new demand forsuch positive development as expanding office spaces, primarily in the Tokyo
area, causing new rents to rise moderately. Given such a situation, JPR
forecasts distribution per unit of 7,140 yen for the 31st fiscal period ending
June 2017, anticipating to renew the record high since listing (achieved for the
13th fiscal period ended June 2008). For the 32nd fiscal period ending
December 2017, DPU is projected to achieve a period-on-period increase forthe eighth straight fiscal period, steadily continuing stable growth.
Going forward, JPR will continue its efforts to enhance unitholder value
through “continuous growth of cash distributions.”❚❚ Forecast cash distribution
per unit
31st fiscal period ending June 2017

¥7,14032nd fiscal period ending December 2017

¥7,2007

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

Major Reinforcement Strategies
1. Flexibly use target rents

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

2. R einforce investments forvalue enhancement

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

3. C ontinuously enhancetenant satisfaction

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

4. S trategically use rent-free
Periods

JPR uses rent-free periods strategically, intending to raise rents for new contracts andconduct upward revision of rents upon contract renewal in the future.

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
has remained at a high level of 97%
or higher.

(%)

Entire portfolio

100
99.8
98

96

99.7
96.9

Office properties

99.6

99.6
97.2

97.0

100.0

Retail properties
99.8

100.0

97.5

97.4

99.9
97.8

98.3
97.5

96.8

95.6
95.4

95.9

95.7

96.2

96.1

94
93.4
92

0

23rd Period 24th Period 25th Period 26th Period 27th Period 28th Period 29th Period 30th Period(Jun. 2013) (Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016)

Changes in Revised Amount of Monthly Rent, Etc.
By amount, upward revision of rents
has continued to surpass downward
revision since the 26th fiscal period
ended December 2014.

(million yen)

20

Upward revision

Downward revision

10

0

-10

-20

8

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

Japan Prime Realty Investment Corporation

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

Basic Strategy
1. Focused investments inoffice properties in Tokyo

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

Compared with other regional cities, Tokyo allows expectations for more stable occupancy and higher rent levels, and is believed tooffer larger rooms for an increase of rents when the leasing market shows a recovery trend. Looking ahead, JPR will continue tomake investments focused on office properties in Tokyo, with an aim to further improve the quality of its portfolio and enhance its
growth potential over a long term.

2. Vigorously selective
investments in retailproperties as well as officeproperties in regional cities

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

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

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

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

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

Tokyo Tatemono
Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance■■ Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its sponsors, etc. andthat of properties acquired from third parties (total of properties
acquired based on the information provided by the sponsors andthose acquired other than from the sponsors, etc.) are almost equal,
standing at 51.6% for the former and 48.4% for the latter (on an
acquisition price basis).
JPR will work to increase property acquisition opportunities andconduct vigorously selective investments in blue-chip properties bybuilding sourcing abilities on its own instead of depending solely on
sponsor support.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Transactions withthird parties

48.4%

Properties acquired
other than fromsponsors, etc.

29.5% Properties
acquired fromsponsors, etc.

18.9%

51.6%

Properties acquired
based on information
provided by sponsors

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

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 30th fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

Ratio of interest-bearing debts to total assets

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

43.7%

AA- (Stable)

Ratio of long-term, fixed interest rate debts

S & P (Standard & Poor’s Ratings Japan K.K.)

96.3%

Long-term:A (Stable)

Short-term:

A-1

Lengthening Maturity of Debts and Reducing Costs Simultaneously
JPR has successfully reduced debt cost while working to lengthen the maturity of debts.
Refinances in the 30th Fiscal Period(Comparison of debts that matured in
the fiscal period and new debts)

Average Maturity of the Entire Interest-Bearing Debts and Average Debt Cost(%)

Average maturity (right axis)
1.44
1.27

1.53

1.6

Average maturity

4.7 years ➤ 7.4 years

0.8

Average debt cost

0.4

1.05% ➤ 0.52%

0.0(down 0.52%)

1.21

1.2

(up 2.8 years)(years)Average debt cost (left axis)
1.19

1.16

8.0
1.11

6.0

4.0
3.5
years

3.8
years

3.9
years

4.0
years

4.0
years

4.2
years

4.2
years

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

2.0

0.0

(Note) New debts borrowed in the refinance conducted in the 30th fiscal period, their average maturity and average debt cost have been calculated by excluding short-term loans payable.

Expansion of Unrealized Gains
JPR’s unrealized gains have increased, given higher appraisal values in accordance with the recovery in the real estatemarket.
Status of Unrealized Gainsat the End of the 30th Period

Changes in Unrealized Gains and Losses since Listing
(%)

30.0

Unrealized gains or losses (right axis)

Ratio of unrealized gains or losses (left axis)(billion yen)

60

Appraisal value

437.9 billion yen

22.5

45

15.0

30

7.5

15

0

00

-7.5

-15

(up 18.1 billion yen period-on-period)
Unrealized gains

36.6 billion yen(up 9.1%)(up 8.0 billion yen period-on-period)-15.0
1st Period(Jun. 2002)

5th Period(Jun. 2004)

10th Period(Dec. 2006)(Note) Unrealized gains refer to the amount obtained by subtracting the period-end book value from the appraisal value.

10

15th Period(Jun. 2009)

20th Period(Dec. 2011)

25th Period(Jun. 2014)-30
30th Period(Dec. 2016)(at end of period)

Japan Prime Realty Investment Corporation

Initiatives on GovernanceIn the belief that it is essential to secure sound and efficient operations of JPR in order to realize its
continuous growth, consistent efforts have been made to reinforce and sustain corporate governance of JPR
and TRIM, the Asset Manager.

Highly Independent Board Composition❚❚ At JPR, the executive officer as well as the supervising
officers have no concurrent assignment as officers of
TRIM so as to firmly secure the independence of JPR,
the investment corporation.
❚❚ The JPR officers are comprised of attorneys and acertified public accountant with various experience andhigh expertise, and possess a thorough knowledge of
the REIT industry as well.

Member of the Board of JPR

Executive Officer:

Hirohito Kaneko (attorney)

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

Shareholder Composition of TRIM
Real estate
Real estate
Yasuda Real Estate

Shareholding ratio:

Tokyo Tatemono

Shareholding ratio:

52%

18%

Taisei Corporation

Shareholding ratio:

Finance10%

Finance

Meiji Yasuda Life Insurance

Shareholding ratio:

Construction

10%

Sompo Japan Nipponkoa Insurance Inc.

(Asset Manager)
Tokyo Realty Investment
Management, Inc.

10%

Shareholding ratio:

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

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

Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.

Prior review / approval oftransaction with related parties

Members of the Compliance Committee of TRIM

Final decision on Acquisition

President and CEO
Corporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager

Special member (outside attorney)

Decision making on
acquisition over certain amountConclude agreement

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

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

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

Target investment ratio by area

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

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

Asset Size Expansion Trends(billion yen)

450

Office properties in Tokyo

Office properties in Other Cities

Retail properties

421.4

400
350
300
250
200
150
100
50
0

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

(Note) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.

Changes in Investment Ratios by Area and by Asset Class
Focused investments in office properties in Tokyo have resulted in an increase in the investment ratio of officeproperties in Tokyo as of the end of the 30th fiscal period by 24.1% compared with the end of the 1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 30th Fiscal Period (December 31, 2016)

Increase in the investment ratio of
office properties in Tokyothrough focused investments
Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

Office in
Tokyo
43.5%

+22.3%

Retail in
Other Cities
6.2%
Office in
Other Cities
10.2%
Retailin Tokyo
17.7%

Officein Tokyo

65.8%(Note) The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

12

Japan Prime Realty Investment Corporation

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

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

10

Circle size: asset size (based on acquisition price)

Office properties
in Other Cities

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

Office properties
in Central Tokyo

Office properties
in Greater Tokyo

43.0 billion yen
7.8%

100.9 billion yen
5.1%

83.9 billion yen
5.4%

5

193.6 billion yen
3.9%

Retail properties

Portfolio average

4.9%

0

Status of Tenant Diversification (ratio of tenant occupancy of 1% or more)
If the ratio of occupancy (ratio of occupied floor space in the portfolio) by a single tenant is low, it reduces the risk oflower revenue when the tenant cancels a contract in the future. JPR keeps the ratio low to enhance the stability ofrevenue.
1% or more by sponsors, etc.
1 tenant / 1.7%

1% or more by other tenants(except for sponsors, etc. and retail tenants)
2 tenants / 2.4%

Number of tenants
Less than 1%

634 tenants / 67.5%

645

companies

1% or more by retail tenants

8 tenants / 28.4%(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees, which shows the diversification status in effect, when the tenant subleases the relevant property to sublessees (end tenants), etc. andthe leasing terms and conditions vary in accordance with the situation of leasing. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If theleased rooms are in multiple buildings, the tenant is counted in plural.

13

Overview of Portfolio Properties
List of Properties (63 Properties for the Entire Portfolio)
Central Tokyo (31 Properties)
Property
Number

Property Name

Location

Acquisition Date

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

A-1

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

3.9

7,994.02

3.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

5.8

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

3.7

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.37

4.4

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

0.9

3,265.34

7.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.7 14,468.38

6.8

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,241.22

7.3

Oct. 15, 2003

1,800

0.4

Apr. 15, 2005

1,120

0.3

1,937.40

5.2

2,920

0.7

Total

A-8

Fukuoka Bldg.

Chuo-ku, Tokyo

Total
A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,235.05

4.9

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.8

4,088.44

3.5

Jul. 2, 2004

10,0002.4
0.0
0.9 19,284.71

1.3

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

OfficeSep. 26, 2008180

Mar. 25, 2015

4,000

Oct. 21, 2015

786

0.2

Total

14,966

3.6

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.1

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,216.94

3.1

15,121

3.6

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

21,0000.2

1,253.39

4.7

5.0

8,863.98

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

Jul. 14, 2008

1.3

3,760

0.9

3,405.73

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

6.0

Dec. 19, 2008

1,870

0.4

1,700.57

A-17

Rokubancho Bldg.

5.3

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.7

2,488.36

A-18

7.7

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

2.0

4,763.38

6.8

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.2

3,551.01

6.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.2

5,299.89

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.6

6,177.74

2.6

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,896.69

4.5

A-23

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,000

8.5 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.27

3.1

Dec. 6, 2013

3,420

0.8
5,401.46

5.6

A-25

Shibadaimon Center Building

Minato-ku, Tokyo

Jul. 30, 2014
Total

800

0.2

4,220

1.0

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0002.8

8,076.85

5.8

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 24, 2006

4,275

1.0

1,027.33

5.4

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,347.81

1.6

2,740

0.7

Aug. 27, 2008

3,400

0.8

1,101.92

3.0

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

RetailTotal
A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo

A-6

GINZA GATES

Chuo-ku, Tokyo

Dec. 15, 2016

10,1002.4

1,666.55

6.8

A-7

FUNDES Suidobashi

Chiyoda-ku, Tokyo

Dec. 15, 2016

3,250

0.8

1,367.56

6.5

54.4 157,896.83—

Subtotal¥229,382(Note 1) The table above shows properties owned by JPR as of December 31 2016.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.

14

PML (%)

Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.4

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.6

5,536.18

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

6.7

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

10.5

1,490

0.4

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

1.9 15,420.07

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.8

6,476.53

3.9

Sep. 30, 2005

888

0.2

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

2,300

0.5

4,683.40

4.1

3,188

0.8

Total

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

B-1

Total

OfficeAcquisitionPrice(in millions)

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.4

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.5 12,000.08

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,300

7.4 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.7

6,494.09

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.4

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.4 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,254

1.7 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.0 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,080

3.6 12,116.35

5.9¥122,885

29.2 189,769.33—

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

PML (%)

Subtotal

Other Cities (15 Properties)
Property
NumberOfficeProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,326.88

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,158.13

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,568.43

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.7

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.38

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.7

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,930.71

5.0

C-18

JPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 11, 2004

1,920

0.5

3,290.42

0.8

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,9962.6 16,654.33

1.6

C-21

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.3

3,842.47

11.5

May 15, 2003

8,000

1.9

Jul. 16, 2003

5,000

1.2 18,586.97

4.3

Total

13,0003.1

7,220

1.7 35,444.13

7.2

1.4

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

RetailC-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

2,485.79

8.4

Subtotal¥69,2236,000

16.4 129,583.24

—

Total

¥421,490

100.0 477,249.40

2.0(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the second decimal place.
(Note 4) The acquisition price for JPR Musashikosugi Bldg. (Retail B-4) does not include the part of the land that was sold in association with a redevelopment project (5 million yen).
(Note 5) The asset class of Benetton Shinsaibashi Bldg. (Office C-21) was converted from “retail” to “office” as of July 30, 2016.

15

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-4
A-12

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

Tokyo

A-23
A-26
A-5

Harajuku

A-3

Shinbashi

A-18

A-1

A-5

Ichigaya

A-21
Shibuya Ward

A-7

A-6

A-25

Shibuya

Sobu Line

A-20
A-3
A-2 A-1

A-13

A-8
A-19
A-22

Keiyo Line

Chuo Ward

Minato Ward

Hamamatsucho

Tamachi
Yamanote Line

A-15

GotandaShinagawaA-7

Shinagawa Ward

A-6
A-16

A-10
Osaki

Tokaido Shinkansen
Yokosuka Line

Keihin Tohoku Line
Tokaido Main Line

Office
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-8
● A-9
● A-10● A-11● A-12● A-13● A-14● A-15RetailKanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

● A-16● A-17● A-18● A-19● A-20● A-21● A-22● A-23

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

16

Minato Ward
Shinjuku Ward

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

Property acquired in 30th fiscal period
■ A-6
■ A-7

GINZA GATESFUNDES Suidobashi

Property to be acquired in 31st fiscal period● A-26 Tokyo Square Garden

A Central Tokyo
Chiyoda Ward
Chuo Ward

■ A-1
■ A-3
■ A-4
■ A-5

Shinagawa Ward
Shibuya Ward

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

● B-1 Arca East
● B-2 JPR Chiba Bldg.
● B-3 JPR Yokohama Nihon
Odori Bldg.
● B-5 Shinyokohama 2nd
Center Bldg.
● B-6 Kawaguchi Center Bldg.
● B-7 JPR Ueno East Bldg.
● B-8 Tachikawa BusinessCenter Bldg.
● B-9 Rise Arena Bldg.
● B-10 Yume-ooka Office Tower● B-11 Olinas Tower● B-12 Tokyo Tatemono
Yokohama Bldg.
● B-13 Omiya Prime East

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main Line

Funabashi

Kinshicho

Tokyo

Shinjuku

Tachikawa

B-11
Ueno
Sobu Main Line
B-1
B-7

Keiyo Line

ShibuyaNambu Line

Chiba

Shinagawa

B-2

■ B-1
■ B-3
■ B-4
■ B-5

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

Musashikosugi

KANAGAWA

B-4

Yokohama Line

Tokaido Shinkansen

Musashikosugi
Tokaido Main Line
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

RetailUchibo Line

B-3

Kamiooka

C Other Cities
Office● C-1 Niigata Ekinan Center Bldg.
● C-4 Tokyo Tatemono Honmachi Bldg.
● C-7 JPR Hakata Bldg.
● C-9 JPR Naha Bldg.
● C-12 Sompo Japan Sendai Bldg.
● C-13 Sompo Japan Wakayama Bldg.
● C-14 Tenjin 121 Bldg.
● C-17 JPR Dojima Bldg.
● C-18 JPR Hakata-chuo Bldg.
● C-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden● C-21 Benetton Shinsaibashi Bldg.

OSAKA

FUKUOKA

Retail
■ C-1
■ C-4
■ C-5

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

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

NAHA

C-9

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

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
WAKAYAMA

C-13

17

Properties Newly Acquired in 30th Fiscal Period
A-6

GINZA GATES
Chuo Ward, Tokyo

Imperial Hotel
Tower
T

New Sony Building(scheduled to open in 2022)

HermesPiaget Tokyo Metro

Ginza Line

BreguetMiyuki-dori(a luxury hotelscheduled toopen in 2018)

npolitaMetro ssway
e
r
p
x
E

Ginza Six

Dior

Wako

Ginza Sta.

Ginza Place(scheduled to start
operation in a three-building
structure in March 2017)

Gucci

GINZA
GATES

(Scheduled toopen in April 2017)

Marronnier Gate
Ginza 1, 2 and 3

Ginza
Sta.

Namiki-doria.

ItociaTokyu Plaza
Ginza

Sotobori-dori
Hyatt Centric
Ginza Tokyo

Yurakucho St
Yurakucho
Mullion Yurakucho

tro e
Me Linyo hoTokrakucYuo
Ma kyorun Meou trochiL(Tentative)
ineTokyo Metro
Hibiya Line
Harumi-dori

JPR acquired an urban retail property along Namiki-dori street
in Ginza, one of the most prominent brand streets in Japan,
from the main sponsor.

ChaumetGinzaitchome
Sta.

Zegna

Chuo-dori
Ginza
Sanwa Bldg.
Tiffany

Ginza
Mitsukoshi

Matsuya Bvlgari
Ginza

Harry
WinstonApproximately 2-minute walk from Ginza Station on Tokyo Metro
Ginza Line, Hibiya Line and Marunouchi Line
Location

5-14 Ginza 5-chome, Chuo-ku, Tokyo

Acquisition Price
Site Area

S 11F

Completed230.11 m2

Total Floor Space

A-7

Structure/Floors¥10,100 million

June 2008

Property Manager

1,821.67 m2

Tokyo Tatemono Co., Ltd.

FUNDES Suidobashi
Chiyoda Ward, Tokyo

LaQua
LeisureKoishikawa
Korakuen

OfficeTokyo Metro
Namboku Line

LeisureJapan Housing
Office Finance Agency
Head Officeori

JR Chuo Mai
opo

18

July 2015

Property Manager

Prime Place Co., Ltd.

Suidobashi
Sta.

Campus

Toyo
High School

Fuyo General Lease
Head Office
OfficeOfficeNihon
University
TekkenCampusCorporation
Head Officeywa

1,477.91 m

2Completedess

281.59 m2

S 9F

xpr

Total Floor Space

¥3,250 million

Structure/Floors

Corporation Office
Head Office OfficeNikkenSekkeiHead Officeroeto M neky i LiTo ozaT

Site Area

20-8 Misakicho 2-chome, Chiyoda-ku, TokyonE

OfficeOfficeCampusFUNDESTokyo Dental
Suidobashi
Collegelita

KDDI
Head Office

Office Area Otsuka

Sanseido
Head Officen Linetr
Me

OfficeAcquisition Price

Suidobashi
Sta.

Sotobori-d

Daiwa House Industry
Tokyo Head Office

Iidabashi
Sta.

Tokyo Dome City
Attractions

ay

Leisure Area

Toyota Motor
Tokyo Head Office

Location

LeisureTokyo Domeubw
Toei SLine
Mita

Toe
Oed i Subwa
o Lin ye

JPR acquired the first property of the FUNDES series, which arecompact urban retail properties developed by the main sponsor.

Office / Campus Area
OfficeJohnson & Johnson
Head OfficeSenshuApproximately a 1-minute walk from Suidobashi
Station on the JR
University
Sobu Line and approximately a 5-minute walk from Suidobashi Stationon the Toei Subway Mita LineJapan Prime Realty Investment Corporation

Property Newly Acquired in 31st Fiscal Period
Square Garden
A-26 Tokyo
Chuo Ward, Tokyo
JPR acquired a large-scale office property developed by the main sponsor. Located in the area in front of Tokyo Station, where atransformation into one of the best business districts in Tokyo is under way, the property features high quality with great appeal,boasting a floor plate of more than 1,000 tsubos

Floor plate with more than 1,000 tsubos and column-free space

Kyobashi Station Plaza directly connected to Kyobashi Station on theTokyo Metro Ginza Line

“Kyobashi no Oka” with full of greenery and tree-lined sidewalks
Location

1-1 Kyobashi 3-chome, Chuo-ku, Tokyo

Acquisition Price

Structure/Floors

Site Area

Completed¥18,400 million

Total Floor Space

8,124.72 m2
112,645.83 m

Tokyo Tatemono Co., Ltd.

Ginza
Mitsukoshi

Matsuya
Ginza

i
i-dor

Kabukiza
TheatreShowa-dRedevelopment projects (planned)ori

Ginzaitchome
Sta.

TOKYO Bldg. 1
SQUAREGARDENTokyo
Tatemono
Kyobashi
Bldg.
Direct connection
to Kyobashi Sta.

Yaesu
Book
Center

MetroTokyoi Line
Toza

Shin-Gofukubashi
Bldg.

Mitsukoshimae
Sta.

TG Bldg.
NTA Nihonbashi
Yaesu
KYOBASHI Kyobashi
Nihonbashi
Bldg.
Yamagata
EDOGRAND Trust Tower
First Bldg.
Bldg. MaruzenTokyo
Chuo-doriBookstore Nihombashi Tatemono
Kyobashi
5
6
Tokyo Metro
Sta. Nihonbashi
Sta.
Bldg.
Ginza Line
Takashimaya
Nihombashi
Tokyo
Nihombashi
Store
Tower
Kyobashi
4
YS Bldg.

TakarachoSta.

1. Yaesu 2-chome Naka District
4. Kyobashi 2-chome Project

Daimaru Marunouchi
Trust Tower
Tokyo
GRANROOF Gran Tokyo
Tekko Bldg.
Sotobori-doriNorth Tower
2
3
Yaesu Tokyo
Tokyo
Kagawa Tatemono
Yaesu
Tatemono Bldg.
Bldg.
Head Office

Kajibashidori

GinzaSta. Wako
Ginza
Ginza
Sanwa Bldg.
Place

Higashiginza Sta.
Harum

Fukuoka(scheduled to start
operation in a three-building
structure in March 2017)

東京駅 Sta.
Tokyo

Gran Tokyo
South Tower

KaikanToky
Yurako Metro
ucho
Line

(Scheduled toopen in April 2017)

tro ineo MeTokyunouchi LraM

Yurakucho
Tokyo Kotsu
ItociaMarronnier Gate
Ginza 1, 2 and 3

GINZA
GATES

Ginza Six

Toky
Hibiy o Metroa Line(scheduled to open in 2022)

Tokyo International
Forum

Yaesu-dori

Yurakucho YurakuchoSta.
MullionFebruary 2013

Property Manager

2

Tokyu Plaza Ginza(Tentative)
New Sony Building

S/SRC B4/24F

Toei Subway
Kanematsu Bldg.
Asakusa Line
Kanematsu Bldg. Annex
2. Yaesu 2-chome District 1
5. Kyobashi 1-chome East District

Nihombashi Sta.

Metropolitan
Expressway

3. Yaesu 2-chome District 6
6.Nihonbashi 2-chome District

Directly connected to Kyobashi Station on the Tokyo Metro Ginza Line, approximately a seven-minute walk from Tokyo Station on the JR lines,
approximately a six-minute walk from Yurakucho Station on JR lines, approximately a 3-minute walk from Ginza 1-chome Station on the Tokyo
Metro Yurakucho Line, and approximately a 3-minute walk from Takaramachi Station on the Toei Subway Asakusa Line

19

Portfolio Properties
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,874 million
679.06 m2

Total Floor Space
Structure/Floors
Completed

4,351.46 m2
SRC B1/8F
February 1993

Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area

550.06 m2

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

Total Floor Space

14,995.09 m

Structure/Floors
Completed

CompletedFebruary 1993

Property Manager

Shin-Kojimachi Bldg.

Acquisition Price
Site Area

SRC/RC B1/8F
December 1989

Tokyo Tatemono Co., Ltd.

A-6

Chiyoda Ward, Tokyo

4,117.70 m2

Property Manager

Tokyo Tatemono Co., Ltd.

2A-4Structure/Floors

S/RC/SRC B2/13F¥2,100 million

MS Shibaura Bldg.
Minato Ward, Tokyo¥2,420 million
657.80 m2

Total Floor Space
Structure/Floors
Completed

5,152.98 m2
SRC B1/9F
October 1984

Property Manager

Tokyo Tatemono Co., Ltd.

A-5

JPR Crest Takebashi Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥4,000 million
636.90 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

4,790.68 m2
SRC B1/9F
September 1999

Tokyo Tatemono Co., Ltd.

20

Acquisition Price
Site Area
Total Floor Space¥11,200 million
8,992.18 m2

Structure/Floors
Completed

31,020.21 m

Property Manager
2

SRC/RC/S B2/13F
February 1988

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-7

OfficeRetailGotanda First Bldg.

A-8

Shinagawa Ward, Tokyo

Acquisition Price
Site Area

Fukuoka Bldg.
Chuo Ward, Tokyo

Acquisition Price¥2,920 million¥2,920 million

Site Area

1,551.19 m

1,302.17 m2

2

Total Floor Space
Structure/Floors
Completed

Total Floor Space

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

Tokyo Tatemono Co., Ltd.

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price
Acquisition Price
Site Area
Total Floor Space¥5,100 million
1,058.04 m

Structure/Floors
Completed

SRC B1/9F

Site Area¥14,966 million
8,409.52 m2

March 1989

(entire redevelopment project)
Total Floor SpaceTokyo Tatemono Co., Ltd.

(entire redevelopment project)

25,888.82 m2

May 1990

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ichigaya Bldg.

SRC B2/10F

Completed

Property Manager

A-9

11,627.74 m2

Structure/Floors

Property Manager

Court Ohsaki Mark West
A-10 Oval
Shinagawa Ward, Tokyo
Acquisition Price
Site Area

78,796.00 m2

Structure/Floors

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

Shinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo¥3,500 million
4,006.00 m

Acquisition Price
Site Area

Structure/Floors
Completed
Property Manager

28,575.80 m2
S/SRC B2/17F
June 2001

Tokyo Tatemono Co., Ltd.

¥710 million
858.48 m2

2

Total Floor Space

S/RC/SRC B4/30F

Completed

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

21

Portfolio Properties
Central Tokyo

OfficeRetailCenter Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space¥15,121 million
3,522.46 m2
25,733.10 m

Structure/Floors
Completed

SRC B2/14F
April 1985

Property Manager

Tokyo Tatemono Co., Ltd.

2

Azabu Bldg.
A-15 Minami
Minato Ward, Tokyo

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

Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

176,607.89 m

Tokyo Tatemono Co., Ltd.

2Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥3,760 million
778.09 m2

Total Floor Space
Structure/Floors
Completed

4,570.63 m2
S 9F
June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo
Acquisition Price
Site Area¥1,870 million
828.82 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,216.21 m2
S B1/8F
July 2008

Tokyo Tatemono Co., Ltd.

22

Acquisition Price
Site Area
Total Floor Space

¥8,400 million
1,205.07 m2

Structure/Floors
Completed

6,466.94 m

Property Manager
2

SRC B1/9F
March 1989

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailBldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo

Tatemono Kyobashi Bldg.
A-19 Tokyo
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,800 million
716.95 m2

Total Floor Space
Structure/Floors
Completed

4,205.09 m2
SRC B3/7F
October 1991

Property Manager

Tokyo Tatemono Co., Ltd.

Nihonbashi-horidome Bldg.
A-20 JPR
Chuo Ward, Tokyo
Acquisition Price
Site Area¥5,100 million
937.59 m2

Total Floor Space
Structure/Floors
Completed

7,190.82 m2
SRC B1/9F
June 2002

Property Manager

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥5,250 million
547.10 m2

Structure/Floors

SRC/S B1/10FF

Completed

January 1981

4,419.79 m

Property Manager

Tokyo Tatemono Co., Ltd.

2

Sanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo

Acquisition Price¥3,400 million

Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F

Completed

October 1982

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area
Total Floor Space
Acquisition Price
Site Area
Total Floor Space¥15,050 million
2,217.49 m2
7,683.19 m

Structure/Floors
Completed
Property Manager

2

S 8F
May 2009

Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed¥2,660 million
5,289.01 m2
24,560.36 m2
S/SRC/RC B2/12F
February 1995

Property Manager

Nomura Real Estate Partners Co., Ltd.

23

Portfolio Properties
Central Tokyo

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

Acquisition Price
Site Area¥36,000 million
11,034.78 m

Structure/Floors–

Completed–2

Total Floor Space–

A-1

Property Manager– (Note)Shibuya Ward, Tokyo

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

Total Floor Space

Center Building
A-25 Shibadaimon
Minato Ward, Tokyo

A-3

1,915.50 m

Total Floor Space

Site Area
Total Floor Space
Structure/Floors
Completed

July 1993

Shinjuku Sanchome East Bldg.

Site Area¥2,740 million
2,578.69 m

Total Floor Space
Structure/Floors
Completed
Property Manager

January 2007

Tokyo Tatemono Co., Ltd.

24

Jones Lang LaSalle K.K.

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

Acquisition Price
Site Area

S/SRC/RC B3/14F

S/SRC B1/7F
February 2006

¥3,400 million
6,808.12 m2

2

24,617.65 m2

1,066.81 m2

Property Manager

A-5

Shinjuku Ward, Tokyo

¥4,275 million
198.10 m2

2

Nomura Real Estate Partners Co., Ltd.

Acquisition Price

Tokyo Tatemono Co., Ltd.

Acquisition Price

Property Manager

A-4

February 1992

Shibuya Ward, Tokyo

S/SRC B1/10F

Completed

SRC/S B3/8F

JPR Jingumae 432

11,419.93 m2

Structure/Floors

Completed
Property Manager

8,449.56 m¥4,220 million

Site Area

Structure/Floors

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

Acquisition PriceJPR Shibuya Tower Records Bldg.

Total Floor Space
Structure/Floors
Completed
Property Manager

71,957.65 m2
S/SRC B4/20F
October 2007

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-1

OfficeRetailArca East

B-2

Sumida Ward, TokyoJPR Chiba Bldg.
Chiba City, Chiba

Acquisition Price¥2,350 million

Site Area

1,382.35 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

B-3

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price
Site Area

1,100.59 m2

Total Floor Space
Acquisition Price
Site Area

3,755.01 m2

Total Floor Space

B-5¥5,880 million

34,281.86 m

Structure/Floors

Structure/Floors

S/SRC B3/19F

Completed

Completed

March 1997

Property Manager

Shinyokohama 2nd Center Bldg.

Acquisition Price
Site Area

SRC B1/11F
October 1989

Tokyo Tatemono Co., Ltd.

B-6

Yokohama City, Kanagawa

9,146.52 m2

Property Manager

Tokyo Tatemono Co., Ltd.

2¥2,927 million

Kawaguchi Center Bldg.
Kawaguchi City, Saitama¥1,490 million
841.71 m2

Total Floor Space
Structure/Floors
Completed

7,781.93 m2
S/SRC B2/12F
August 1991

Property Manager

Nomura Real Estate Partners Co., Ltd.

B-7

JPR Ueno East Bldg.
Taito Ward, Tokyo

Acquisition Price
Site Area¥3,250 million
1,242.97 m2

Total Floor Space
Structure/Floors
Completed

8,490.44 m2
S/SRC B1/8F
October 1992

Property Manager

Jones Lang LaSalle K.K.

Acquisition Price
Site Area
Total Floor Space

¥8,100 million
4,524.61 m2

Structure/Floors
Completed

S/SRC B2/15F
February 1994

28,420.85 m

Property Manager
2

Nomura Real Estate Partners Co., Ltd.

25

Portfolio Properties
Greater Tokyo
B-9

OfficeRetailRise Arena Bldg.

B-8

Toshima Ward, Tokyo

Tachikawa Business Center Bldg.
Tachikawa City, Tokyo

Acquisition Price¥3,188 million

Site Area

2,047.22 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Site Area¥5,831 million
9,377.28 m2(entire redevelopment project)
Total Floor Space

91,280.94 m

Structure/Floors

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

Completed

January 2007
Property Manager

2(including residential tower)

Taisei-Yuraku Real Estate Co., Ltd.

(Note) The commercial tower portion has 2 basement floors and 15 floors above ground.

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

Acquisition Price
Site Area¥31,300 million

27,335.29 m2 (entire site area)

Total Floor Space

Structure/Floors

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

CompletedFebruary 2006

Property Manager

257,842.41 m

2

Tokyo Tatemono Co., Ltd.

(includes commercial tower and residential tower)(Note) The office building has 31 floors above ground and 2 floors underground.

B-3

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

48,321.96 m2

Acquisition Price
Site Area
Total Floor Space

¥6,510 million
12,011.00 m2
185,974.87 m

2

26

Structure/Floors
Completed
Property Manager

S/SRC/RC B3/27F
March 1997

Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed
Property Manager

S/RC/SRC B2/10F
January 2006

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo

Office/ Other Cities

RetailTatemono Yokohama Bldg.
B-12 Tokyo
Yokohama City, Kanagawa

Acquisition Price
Site Area

1,110.28 m2

Total Floor SpaceB-1¥7,000 million

8,772.51 m

Structure/Floors
Completed

RetailPrime East
B-13 Omiya
Saitama City, Saitama

SRC B1/9F
May 1981

Property Manager
2

OfficeTokyo Tatemono Co., Ltd.

Tanashi ASTA

Acquisition Price
Site Area

2,268.09 m2

Total Floor Space

Structure/Floors
Completed

S 9F
February 2009

9,203.98 m

Property Manager

Tokyo Tatemono Co., Ltd.

2

B-5

Nishitokyo City, Tokyo

¥6,090 million

Musashiurawa Shopping Square
Saitama City, Saitama
Acquisition Price
Site Area¥4,335 million
8,317.99 m2

Total Floor Space
Structure/Floors
Completed

28,930.36 m2
S B1/4F
October 2005

Property Manager

Geo-Akamatsu Co., Ltd.
Tokyo Tatemono Co., Ltd.

(Note) The property manager was changed
from Nippon Steel Kowa Real Estate Co.,
Ltd. as of January 1, 2017.

C-1

Niigata Ekinan Center Bldg.
Niigata City, Niigata

Acquisition Price
Site Area

2,706.99 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space

¥10,200 million
12,326.30 m2
80,675.27 m

Structure/Floors
Completed
Property Manager

2

SRC B2/17F
February 1995

Tokyo Tatemono Co., Ltd.

¥2,140 million

Structure/Floors
Completed

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

Property Manager

Jones Lang LaSalle K.K.

27

Portfolio Properties
Greater Tokyo
B-4

Office/ Other Cities

RetailJPR Musashikosugi Bldg.

B-6

Kawasaki City, Kanagawa

Acquisition Price
Site Area¥7,254 million

Structure/Floors

SRC/RC/S B1/6F

Completed

4,757.09 m

March 1983

2 (Note)Total Floor Space

18,394.32 m

2

OfficeProperty Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Honmachi Bldg.

Kawasaki City, Kanagawa

Site Area¥15,080 million
4,475.45 m2

Total Floor Space

Structure/Floors
Completed

S/SRC/RC B2/11F
August 2003

Property Manager

36,902.01 m

Tokyo Tatemono Co., Ltd.

2

C-7

Osaka City, Osaka

Kawasaki Dice Bldg.

Acquisition Price(Note) Does not include the land sold in association with a redevelopment project.

C-4

RetailJPR Hakata Bldg.
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥2,900 million
1,214.63 m2

Total Floor Space
Structure/Floors

9,828.73 m2
S/SRC B1/12F

Completed

June 1985
expansion in November 2003

Property Manager

Tokyo Tatemono Co., Ltd.

C-9

JPR Naha Bldg.
Naha City, Okinawa

Acquisition Price
Site Area

959.87 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space

¥4,150 million
1,432.64 m2
14,619.52 m

228Structure/Floors
Completed
Property Manager

SRC B3/9F
February 1970

Tokyo Tatemono Co., Ltd.

¥1,560 million

Structure/Floors
Completed
Property Manager

5,780.71 m2
SRC/S 12F
October 1991

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

OfficeRetailJapan Sendai Bldg.
C-12 Sompo
Sendai City, Miyagi
Acquisition Price
Site Area

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama
Acquisition Price¥3,150 million

Site Area

1,895.67 m

Total Floor Space
Structure/Floors
Completed

Total Floor Space

10,783.52 m2

Structure/Floors

SRC B1/12F

Completed

December 1997

Property Manager

6,715.07 m2
S 9F
July 1996

Property Manager

Tokyo Tatemono Co., Ltd.

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

2

Tokyo Tatemono Co., Ltd.

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price
Site Area

Acquisition Price¥2,810 million

Site Area

1,164.39 m

Total Floor Space
Structure/Floors
Completed

Total Floor Space

8,690.95 m2

Structure/Floors

S/SRC 13F

Completed

July 2000

Property Manager

5,696.01 m2
SRC B2/9F
October 1993

Property Manager

Tokyo Tatemono Co., Ltd.

Hakata-Chuo Bldg.
C-18 JPR
Fukuoka City, Fukuoka¥2,140 million
668.11 m2

2

Tokyo Tatemono Co., Ltd.

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka

Acquisition Price
Site Area¥1,920 million
680.63 m2

Total Floor Space
Structure/Floors
Completed

3,874.81 m2
SRC 8F
February 1993

Property Manager

Tokyo Tatemono Co., Ltd.

Nagoya Fushimi Bldg.
C-19 JPR
Nagoya City, Aichi
Acquisition Price
Site Area¥4,137 million
1,610.38 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

10,201.44 m2
SRC B1/9F
March 1991

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space

¥10,996 million
4,348.43 m2

Structure/Floors
Completed

SRC 14F
January 2009

22,286.35 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

29

Portfolio Properties
Other Cities

OfficeRetailShinsaibashi Bldg.
C-21 Benetton
Osaka City, Osaka

Acquisition Price¥5,430 million

Site Area

609.31 m2
5,303.98 m

2

February 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe

Osaka City, Osaka

Acquisition Price

Site Area
Total Floor Space

¥7,220 million
3,994.47 m2
33,877.71 m

2Structure/Floors
Completed
Property Manager

Site Area

SRC/S B2/11F
June 1994

Tokyo Tatemono Co., Ltd.

¥13,000 million
3,518.68 m2

Total Floor Space

Structure/Floors
Completed

SRC B1/8F
April 1990

Property Manager

17,897.56 m

Tokyo Tatemono Co., Ltd.

2

C-5

Kobe City, Hyogo

Acquisition Price30

S B2/10FJPR Umeda Loft Bldg.

Completed

Total Floor Space

C-4

Structure/Floors

C-1

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area
Total Floor Space

¥6,000 million
592.45 m2

Structure/Floors
Completed

3,219.36 m

Property Manager
2

S/SRC 9F
June 1994

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

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

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

Properties withexceptionally highenvironmental &social awareness

Olinas Tower

Yakuin Business
GardenProperties withhighenvironmental &social awareness

JPR Crest
Takebashi Bldg.

BYGS Shinjuku
Bldg.

Properties withexcellentenvironmental &social awareness

JPR Ueno East
Bldg.

DBJ Green Building Certification

JPR Sendagaya
Bldg.

JPR Naha
Bldg.

Shinagawa
Canal Building

Properties with
sufficientenvironmental &social awareness

Rise Arena
Bldg.

Omiya Prime
East

Yume-ooka
Office Tower

JPR Nihonbashihoridome Bldg.

Kanematsu
Bldg.

Oval Court
Ohsaki MarkWest

DBJ awards five levels of certification to office buildings in accordance withthe degree of environmental and social awareness they demonstrate.

Continuous Participation in GRESB Survey❚❚ JPR has participated in the GRESB Survey, which analyzes and evaluatesenvironmental considerations and sustainability, since 2011. In the survey
conducted in 2016, JPR was designated as “Green Star,” marking the third
consecutive year of recognition with the highest ranking in the survey. JPR
was also granted “4 Stars” in the GRESB Rating (five-level rating with thehighest being “5 Stars”), which was newly introduced to make relative
assessment based on total scores.
❚❚ JPR believes that its endeavors have been recognized as a result of having
diligently worked to reduce energy consumption by establishing a consistentsystem among all business partners involved in building operations, fromthe asset manager (TRIM) to property managers and building maintenancecompanies, under a clear environmental policy as well as asking forcooperation with tenants.

GRESB, which stands for Global Real
Estate Sustainability Benchmark, is abenchmark system for analyzing andevaluating sustainability in terms ofenvironmental friendliness and social
nature. It is based on surveys conductedby a private sector group establishedprimarily by major pension funds in
Europe.

Taking Advantage of Environmental Friendliness Know-How of Sponsors❚❚ JPR and TRIM have consigned operations related to environmental laws and regulations to Tokyo Tatemono Co.,
Ltd., one of the sponsors, and established a system early on to receive know-how and advice from Tokyo Tatemono.
❚❚ TRIM has reinforced its initiatives on environmental friendliness by allocating dedicated staff to the section in
charge of construction planning for the portfolio properties, bolstered by the technological know-how of each of thesponsors.
31

Structure and History of JPR
The Objective and Basic Characteristics of JPR
With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties found in
thriving commercial areas, multi-use facilities and the land on which they are located as well as in asset-backed
securities that have such real estate as their primary investments. In addition, in light of the returns and risks ofthese investment targets, JPR shall make it a basic policy to invest not only in Tokyo, but also strive to diversify into
other regional cities so as to maximize the advantages of portfolio management.

Corporate History
Date

Description

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

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

Structure of JPR
52%

18%

10%

10%

10%

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Administrative Agent forEnvironment-Related Laws andRegulations

Equity Investment
Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

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

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

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

32

Tokyo Tatemono Co., Ltd.

Investment Corporation

Asset
Management
Property

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

Cash
Distribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Japan Prime Realty Investment Corporation

Overview of Asset Manager
Overview
Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporations¥350 million
Tokyo Tatemono Co., Ltd. (52%)
Yasuda Real Estate Co., Ltd. (18%)
Taisei Corporation (10%)
Sompo Japan Nipponkoa Insurance Inc. (10%)
Meiji Yasuda Life Insurance Company (10%)

NameBusiness Description
Capitalization

Shareholder
Composition (Note 1)

Corporate History

April 28, 2000
October 13, 2000

EstablishedObtained license as real estate transaction agent (currently: No. (3) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act (Approval
Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts and Investment
Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note 2)
Applied for registration and submitted application form for financial instruments exchange business

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

(Note 1) The percentage represents the ratio of the number of respective shares with voting rights to the total number of shares with voting rights. Furthermore, part of the shares owned by Taisei Corporation and Yasuda Real Estate Co., Ltd. was transferred to Tokyo Tatemono as of December 22, 2016. The ratios of the voting rights before the transfer were 40% for Tokyo Tatemono Co., Ltd., 20%
for Taisei Corporation and 20% for Yasuda Real Estate Co., Ltd.
(Note 2) Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006).

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

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

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

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions, as wellas the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees are comprised of the President and CEO,
Investment Management Division General Manager, Financial Division General Manager, and Corporate Planning /Administration Division General Manager. The Compliance Office General Manager also participates in thesecommittees to enhance confirmation in terms of legal compliance. Matters concerning the targets and policies ofinvestment management are decided by the Board of Directors, and matters concerning planning and implementationof asset management are decided by the Investment Committee.
Matters concerning acquisition, disposition or management of individual properties are decided by the Investment
Subcommittee or the Fund Management Subcommittee, respectively. Moreover, the Board of Directors has final
decision-making authority for acquisitions and dispositions of individual assets having over a certain amount of value.
33

Asset Management Report

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

Operating Revenue
Rent revenue – real estate

Million yen

26th Fiscal
Period(Jul. 1, 2014 Dec. 31, 2014)
13,902Million yen

13,902

14,251

14,105

14,246

Gain on sale of real estate

Million yen

－

－

－

－

0

Million yen

7,425

7,554

7,273

7,372

7,944

Million yen

6,733

6,845

6,553

6,658

6,898

Million yen

－

－

－

－

300

Million yen

6,477

6,697

6,831

6,874

7,161

Million yen

5,239

5,566

5,746

5,897

6,153

Million yen

5,238

5,603

5,749

5,896

6,152

Million yen

414,091

418,778

418,739

418,738

432,307

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance

Fiscal Period

Operating Expenses
Expenses related to rent business
Loss on sale of real estate

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

Unit

%

27th Fiscal
Period(Jan. 1, 2015 Jun. 30, 2015)
14,25128th Fiscal
Period(Jul. 1, 2015 Dec. 31, 2015)
14,10529th Fiscal
Period(Jan. 1, 2016 Jun. 30, 2016)14,24630th Fiscal
Period(Jul. 1, 2016 Dec. 31, 2016)
15,105
15,105(-0.0)(+1.1)(-0.0)(-0.0)(+3.2)

Million yen

191,024

176,458

176,292

176,126

188,960

Million yen

197,378

216,092

216,238

216,384

216,639(+0.1)(+9.5)(+0.1)(+0.1)(+0.1)

Million yen

192,044

210,395

210,395

210,395

210,395

Million yen

5,239

5,603

5,751

5,897

6,152

%

100.0

100.0

100.0

100.0

100.0

%

Units

825,000

873,000

873,000

873,000

873,000

Yen

239,246

247,529

247,696

247,862

248,154

Yen

6,351

6,419

6,588

6,756

7,048

Yen

6,351

6,419

6,588

6,756

7,048

Yen

－

－

－

－

－

%

1.3

1.3

1.4

1.4

1.4

%

2.5

2.7

2.7

2.8

2.9

%

2.7

2.7

2.7

2.7

2.8

%

5.3

5.5

5.3

5.5

5.6

197,213

197,378

216,092

216,238

216,384

47.7

51.6

51.6

51.7

50.1

(+0.0)(+3.9)(+0.0)(+0.0)(-1.6)

%

46.1

42.1

42.1

42.1

43.7

Times

7.2

7.9

8.7

9.1

9.9

Million yen

8,223

8,531

8,619

8,738

9,269

Million yen

1,142

1,073

994

955

931

Million yen

9,010

9,260

9,427

9,473

10,090

%

4.4

4.6

4.6

4.6

4.7

Million yen

8,303

8,599

8,581

8,701

9,366

%

4.1

4.2

4.1

4.3

4.4

Million yen

%

62

62

62

62

63

632

647

650

661

679

m2

468,232.24

475,007.79

476,352.67

476,345.81

477,249.40

%

97.0

96.7

97.4

98.1

98.6

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

3430

Japan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (26th fiscal period: ¥405.52 billion, 27th fiscal period: ¥409.52 billion, 28th fiscal period: ¥410.30 billion,
29th fiscal period: ¥410.30 billion and 30th fiscal period: ¥423.65 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 26th fiscal period: 184 days, 27th fiscal period: 181 days,
28th fiscal period: 184 days, 29th fiscal period: 182 days and 30th fiscal period: 184 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shibadaimon Center Bldg., Shinjuku Sanchome East Bldg., Shinyokohama
2nd Center Bldg., Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded off to the first decimal place).

(2) 30th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 873,000 units as of the end of the 30th fiscal period (December 31, 2016). JPR has assigned the asset management of its
portfolio to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize
unitholder value by efficiently managing the portfolio primarily comprising office properties and retail properties.
2) Management Environment
In the 30th fiscal period, the Japanese economy saw consumer spending begin to pick up amid the solid employment and income
environments, while overseas economies regained composure. The domestic business conditions remained on a moderate recovery
path, although improvements were delayed in capital investment and some other areas. On the other hand, a keen awareness was
spread during the six months, like in the previous fiscal period, about the risk factors outside Japan, such as the outcome of the U.S.
presidential election as well as the issue of the U.K. leaving the E.U.
The Office Property Leasing Market
The supply and demand conditions in the office property leasing market of the 23 wards of Tokyo remained tight as new demand
for such positive development as setting up new offices, expanding the office spaces and moving to better locations continued to
be strong. The upward trend of the rent levels for new contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
The need of tenants to open stores remained strong for urban retail properties in which JPR targets for investment. Despite atemporary standstill being sensed in consumption by inbound foreign tourists, the market has been in good shape for urban retailproperties in good locations, such as Ginza, Omotesando and Shinsaibashi.
The For-Sale Real Estate Market
Although investors remain highly willing to purchase properties, transaction volume in the market has shown a decreasing trend,
and property transaction prices are steadily being formed at a high level. With low-yield transactions continuing to prevail, theacquisition environment remains harsh for players focusing on yields. Accordingly, they continue to look for ways to effectively
acquire properties, such as diversifying the target assets for investment and conducting asset replacement.
3) Portfolio Management Status
Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality of the portfolio and achieving stable growth of its earnings while
paying attention to balancing diversification of the portfolio, both in terms of location and asset type.
During the 30th fiscal period, JPR sold JPR Daikanyama (sale price: 1,880 million yen) and acquired GINZA GATES (acquisition
price: 10,100 million yen) and FUNDES Suidobashi (acquisition price: 3,250 million yen). As a result, the balance of JPR’s assets
under management totaled 63 properties, or 421.4 billion yen on an acquisition price basis, with the total leasable floor spacestanding at 477,249m2 and the number of tenants reaching 679. Moreover, in the 30th fiscal period, JPR decided to sell Fukuoka
Bldg. (planned sale price: 3,100 million yen) and JPR Hakata-chuo Bldg. (planned sale price: 1,900 million yen). Sale of theseproperties is scheduled for April 14, 2017.

3135

Asset Management Report

Operational Management of Portfolio
In the office property leasing market in the 30th fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving
occupancy rates. As a result, the occupancy rate increased 0.5 points period-on-period to 98.6% at the end of the 30th fiscal period.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with the aim to create spaces where the workers feel
comfortable. As an endeavor to implement energy-saving measures, JPR conducted renovations of air-conditioning systems andreplaced lighting equipment in common areas with LED lamps, which are expected to be effective for achieving this objective, at
its multiple properties.
With regard to initiatives on environmental issues, JPR has continuously obtained the DBJ Green Building Certification*1, having
acquired the Certification for 14 of the buildings it owns as of the end of the 30th fiscal period. Moreover, in the GRESB*2 Real
Estate Assessment (the survey conducted in 2016), JPR was designated as “Green Star,” marking the third consecutive year ofrecognition with the highest ranking in the survey. JPR was also granted “4 Stars” in the GRESB Rating (five-level rating with thehighest being “5 Stars”), which was newly introduced to make relative assessment based on total scores.
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet the various
social requirements surrounding real estate from stakeholders (“Green Buildings”).
*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 50 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on lengthening the maturity of interest-bearing debts and diversifying
repayment dates, in an effort to make its financial base more solid and stronger against the backdrop of the favorable fundprocurement environment and low interest rates. In the 30th fiscal period, JPR borrowed 25.0 billion yen to fund the repayment ofinterest-bearing debts that matured during the fiscal period (12.0 billion yen) and property acquisitions. The average maturity andaverage debt cost (Note 1) of the new borrowing stood at 7.4 years (Note 2) and 0.52% (Note 2), respectively, in contrast to 4.7
years and 1.05% for the relevant interest-bearing debts before refinancing, achieving longer maturities and lower debt costs.
As of the end of the 30th fiscal period, the balance of interest-bearing debts totaled 188.9 billion yen, with total outstanding
borrowings of 154.4 billion yen and investment corporation bonds of 34.5 billion yen. The ratio of interest-bearing debts to total
assets (Note 3) was 43.7%, long-term and fixed interest-bearing debt ratio (Note 4) was 96.3%, average debt cost was 1.11% andaverage maturity (Note 5) was 4.2 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial institutions.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of December 31, 2016
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 2) The calculation of the average maturity and average debt cost of the new borrowing excludes short-term terms payable.
(Note 3) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 4) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 5) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 30th fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

3632

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 30th fiscal period.
Date

Event

Number of Units
Outstanding

Unitholders' Capital(millions of yen)

Remarks

Variation
240

Balance240

Variation
120

Balance
120(Note 1)

September 14, 2001

Established by private placement

November 16, 2001

Additional private placement

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

Split of investment units

93,360155,600－

31,120(Note 3)June 14, 2002

Initial public offering

134,000

289,600

25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

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

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

July 30, 2012

Additional public offering

101,420

816,420

19,089190,429(Note 13)

August 29, 2012

Third-party allotment

8,580

825,000

1,614

192,044(Note 14)June 16, 2015

Additional public offering

45,700870,700

17,472

209,516(Note 15)

June 24, 2015

Third-party allotment

2,300

873,000

879

210,395(Note 16)

(Note 1)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment
Management, Inc. (40 units) at 500,000 yen per unit.

(Note 2)

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

(Note 3)

A single investment unit was split into 2.5 units.

(Note 4)

New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to repay short-term debts,(Note 5)New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to repay short-term debts,

finance the acquisition of new specific assets, etc.
acquire new specific assets, etc.
(Note 6)

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

(Note 7)

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

(Note 8)(Note 9)New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debts, acquire new specific assets, etc.
New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to repay debts, acquire new
specific assets, etc.

(Note 10)

New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debts, acquire new specific assets, etc.

(Note 11)

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

(Note 12)

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

(Note 13)

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

(Note 14)

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

(Note 15)

New investment units were issued through a public offering at 394,875 yen per unit (underwriting price of 382,320 yen per unit) to repay debts, etc.

(Note 16)

New investment units were issued through a third-party allotment at 382,320 yen per unit to repay debts, etc.

3337

Asset Management Report(4) Cash Distributions
With regard to the cash distributions, JPR decided to distribute part of the retained earnings brought forward that had been internallyreserved through the 29th fiscal period, with the aim of having the profit distributions deducted as expenses based on application of thespecial provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation) and inorder to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result, the cash distribution per unit
came to 7,048 yen for the 30th fiscal period.
(Thousands of yen unless otherwise indicated)
Fiscal Period

Unappropriated Retained Earnings at End of Period

26th Fiscal
Period27h Fiscal
Period28th Fiscal
Period29h Fiscal
Period30th Fiscal
Period(Jul. 1, 2014 Dec. 31, 2014)(Jan. 1, 2015 Jun. 30, 2015)(Jul. 1, 2015 Dec. 31, 2015)(Jan. 1, 2016 Jun. 30, 2016)(Jul. 1, 2016 Dec. 31, 2016)

5,259,866

5,623,366

5,769,258

5,914,654

6,169,462

20,291

19,57917,934

16,666

16,558

Total Cash Distributions

5,239,575

5,603,787

5,751,324

5,897,988

6,152,904(Cash Distribution per Unit)(6,351 yen)

(6,419 yen)

(6,588 yen)

(6,756 yen)

(7,048 yen)

Total Cash Distributions from Net Income

5,239,575

5,603,787

5,751,324

5,897,988

6,152,904(Cash distribution from net income per unit)(6,351 yen)

(6,419 yen)

(6,588 yen)

(6,756 yen)

(7,048 yen)

－

－

－

－

－

(- yen)(- yen)(- yen)(- yen)(- yen)BreakdownInternal Reserves

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy will presumably stay on a moderate recovery trend, given the solid employment and income
environments and bolstered by demand from the government and other public agencies, although caution should continuously be takenwith respect to the risks that may push the Japanese economy downward, such as downside swings of overseas economies.
In the office property leasing market, new supply in the 23 wards of Tokyo is projected to remain subdued through 2017. Considering
this, and if the economy remains strong, the market situation in general is likely to stay in good shape with the supply and demandcondition being tight. In this regard, JPR believes it will be able to fully enjoy the positive impact of the good market situation as it has
focused on improving tenant satisfaction through proactive implementation of value enhancement works and provision of elaborate
management services. When conducting real estate transactions in the for-sale real estate market that continues to appear overheated,
it will become even more important to discern the growth potential in earnings of respective properties. Considering the situation inwhich cap rates are decreasing in a low interest rate environment, it is required to firmly keep the attitude of vigorously selective
investment for implementing real estate investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
Going forward, JPR will continue to make investments focused on the office properties in Tokyo, with an aim to improve the qualityof its portfolio and enhance its growth potential over the long term. Given the briskness in the office property leasing market, thetransaction market sees a decrease in purchase cap rate and expected cap rate levels. Moreover, with the transaction volume trending
to decrease, there are deals closed at prices that have factored in lower cap rates and rent increases. Accordingly, JPR will fully
investigate the growth potential of such properties when acquiring them. As for retail properties as well as office properties inregional cities, JPR will work to invest in strictly selective blue-chip properties that can keep stable revenues at a certain level inorder to complement the stability of earnings from the entire portfolio. JPR will strive to acquire new properties under reasonable
terms by negotiating prices based on detailed market studies and property due diligence in considering properties. In this regard,
JPR made a decision on January 6, 2017 to acquire Tokyo Square Garden (planned acquisition price: 18,400 million yen) in twostages. The first stage of the acquisition was completed on February 1, 2017.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of the Asset Manager (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation, Sompo Japan
Nipponkoa Insurance Inc. and Meiji Yasuda Life Insurance Company), accurately grasping market trends and carefully researchinginvestment value, including the future potential of candidate properties.
Furthermore, JPR will also investigate asset replacement with an aim to improve the quality of its portfolio and enhance the growthpotential over the long term, while taking into account the timing of such arrangement.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhance3834

Japan Prime Realty Investment Corporation

tenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

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

(7) Significant Subsequent Events
Issuance of new investment units
JPR resolved at its Board of Directors meetings held on January 6, 2017 and January 17, 2017 to issue new investment units, as outlined
below. With payment completed on January 24, 2017 and February 14, 2017, respectively, JPR issued the units under the following
conditions. As a result of the issuance, unitholders’ capital stands at 231,653,198,600 yen with the number of investment units
outstanding totaling 923,000 units as of the date of this document.
< Issuance of new investment units through public offering (primary offering)>
Number of new investment units issued:
47,600 units
Issue price (offer price):
439,040 yen per unit
Total issue price (total offer price):
20,898,304,000 yen
Paid-in amount (purchase price):
425,152 yen per unit
Total paid-in amount (total purchase price): 20,237,235,200 yen
Payment date:
January 24, 2017
< Issuance of new investment units through third-party allotment>
Number of new investment units issued:
2,400 units
Paid-in amount (purchase price):
425,152 yen per unit
Total paid-in amount (total purchase price): 1,020,364,800 yen
Allottee:Mizuho Securities Co., Ltd.
Payment date:February 14, 20173539

Asset Management Report<Reference Information>
Property Acquisition
After the 30th fiscal period was closed, JPR concluded a purchase agreement for the following property in two stages. The first stageof the acquisition was completed on February 1, 2017.
<Tokyo Square Garden>
Property overview
Location:
Type of ownership:
Site area:
Total floor space:
Structure/floors:
Completed:
Number of tenants:
Total leasable floor space:
Total leased floor space:Occupancy rate:

3-1-1 Kyobashi, Chuo-ku, Tokyo (residential address)
Land: Ownership for part of the site (co-ownership with 12.5% interest)
Building: Ownership (co-ownership with 8.2% interest)
8,124.72m2 (equivalent to co-ownership interest: 675.95m2)
112,645.83m2 (equivalent to co-ownership interest: 9,256.92m2)
S/SRC with flat roof, B4/24F
February 2013
57 (Note 1)
5,985.62m2 (Note 2)
5,985.62m2 (Note 2)
100.0% (Note 3)

Transaction terms and conditions
Purchase price:
Asset type:
Contract date:
Planned acquisition date:

18,400 million yen
Beneficiary interest
January 6, 2017
February 1, 2017 (50%), April 4, 2017 (50%)*Number of tenants, total leasable floor space, total leased space and occupancy rate indicate the figures as of February 1, 2017.
(Note 1) “Number of tenants” indicates the number of sublessees to which Tokyo Tatemono Co., Ltd., the lessee, subleases. All co-owners
including the trustee lease the entire floor space of the acquired property to Tokyo Tatemono Co., Ltd. (pass-through type master lease)
and Tokyo Tatemono Co., Ltd. subleases the space to sublessees.
(Note 2) “Total leasable floor space” indicates the leasable floor space (equivalent to the co-ownership interest) based on the sublease contracts
regarding the offices and retail stores that can be subleased. In addition, “Total leased floor space” indicates the leased floor space(equivalent to the co-ownership interest) subleased to the sublessees.
(Note 3) Occupancy rate indicates the figure concerning the sublessees of the lessee.

*The ratio in parenthesis of “Planned acquisition date” indicates the acquisition ratio to the targeted portion of the acquisition (100%) on eachplanned acquisition date.

Property Sale
As of December 14, 2016, JPR decided to sell the following assets.
<Fukuoka Bldg.>
Asset type:
Sale price:
Contract date:
Delivery date:
Buyer:
Impact on income:<JPR Hakata-chuo Bldg.>
Asset type:
Sale price:
Contract date:
Delivery date:
Buyer:
Impact on income:4036

Beneficiary interest
3,100 million yen
December 14, 2016
April 14, 2017
Tokyo Tatemono Co., Ltd.
JPR plans to record approximately 114 million yen in gain on sale of real estate as operating
revenue for the 31st fiscal period (January 1, 2017 - June 30, 2017.)
Beneficiary interest
1,900 million yen
December 14, 2016
April 14, 2017
Tokyo Tatemono Co., Ltd.
JPR plans to record approximately 94 million yen in gain on sale of real estate as operating
revenue for the 31st fiscal period (January 1, 2017 - June 30, 2017.)

Japan Prime Realty Investment Corporation

2. Overview of the Investment Corporation(1) Unitholders’ Capital
26th Fiscal
Period as ofDecember 31, 2014
5,000,000

27th Fiscal
Period as of June30, 2015
5,000,000

28th Fiscal
Period as ofDecember 31, 2015
5,000,000

29th Fiscal
Period as of June30, 2016
5,000,000

30th Fiscal
Period as ofDecember 31, 2016
5,000,000

Total number of units issued andoutstanding

825,000

873,000

873,000

873,000

873,000

Unitholders' capital (millions of yen)

192,044

210,395

210,395

210,395

210,395

Total number of unitholders

11,836

15,68913,264

11,786

11,177

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 30th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

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

202,295

23.17

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

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

81,7899.36

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

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

64,329

7.36

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

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

32,259

3.69

Tokyo Tatemono Co., Ltd.

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

29,3003.35

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.86

Meiji Yasuda Life Insurance Company

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

24,0002.74

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

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

20,7702.37

State Street Bank and Trust Company 505233 (Standing
Proxy: Settlement & Clearing Services Division, Mizuho
Bank, Ltd.)

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

15,491

1.77

10,365

1.18

505,598

57.91

State Street Bank and Trust Company 505012 (Standing
Proxy: The Hongkong and Shanghai Banking Corporation,
Tokyo Branch)

One Lincoln Street, Boston, MA 02111
U.S.A.
(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

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

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 30th fiscal period are as follows.
Position
Executive Officer
Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

Name
Hirohito Kaneko

Other Current Assignments
Representative Counsel, Hirohito Kaneko Law OfficeTotal Directors' Fee
during the 30th Fiscal
Period (thousands of yen)
2,400

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

Group Representative Partner of GYOSEI Certified
Public Tax & Accountants' Co.

4,200

Ernst & Young
ShinNihon LLC－

13,000

Numberof Owned
Units
－
－
－
－

(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements.

3741

Asset Management Report

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.
C. Matters Regarding the Party That Was Subject to Business Suspension Order in the Past Two YearsOn December 22, 2015, the Financial Services Agency of Japan issued a three month (January 1, 2016 to March 31, 2016) businesssuspension order to Ernst & Young ShinNihon LLC, the independent auditor of JPR, under which it was prevented from taking on
any new business contracts. JPR comprehensively investigated the quality control of audits by Ernst & Young ShinNihon,
independence of its audit team, progress in implementing the business improvement plan and other factors, and confirmed that
audits of JPR by the firm are conducted appropriately. Accordingly, its audit agreement with Ernst & Young ShinNihon remains
effective.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 30th fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

4238

Japan Prime Realty Investment Corporation

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

29th Fiscal Period(as of June 30, 2016)
Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

78,940,432
57,763,276
21,062,878
138,565,460
51,477,782
43,429,436
27,499,009

18.9
13.8
5.0
33.1
12.3
10.4
6.6

86,848,847
57,384,702
20,888,573
141,524,547
51,154,014
43,494,169
31,012,692

20.1
13.3

(－)

(－)

(－)

7.2
(－)

418,738,276(391,239,266)

100.0(93.4)

432,307,546(401,294,854)

100.0(92.8)

Central Tokyo
Real estate

Greater Tokyo
Other Cities
Central Tokyo

Real estate in trust

Greater Tokyo
Other Cities

Deposits and otherassets－Total assets－

30th Fiscal Period(as of December 31, 2016)

4.8

32.7
11.8

10.1

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

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 30th fiscal period.

Property NameBook Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Asset Class

Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

11,034.78

100.0

11.5

OfficeOlinas Tower

27,869,981

23,987.40

23,642.97

98.6

6.7

OfficeShinjuku Center Bldg.

22,217,805

8,863.98

8,343.16

94.1

3.3

OfficeBYGS Shinjuku Bldg.

15,498,425

15,216.94

14,921.12

98.1

3.7

OfficeJPR Sendagaya Bldg.

14,960,086

6,177.74

6,177.74

100.0

1.9

OfficeKanematsu Bldg.

14,732,428

7,994.02

7,994.02

100.0

2.6

OfficeKawasaki Dice Bldg.

13,659,213

12,116.35

12,116.35

100.0

2.8

RetailShinjuku Square Tower

13,502,136

19,284.71

19,261.84

99.9

2.6

OfficeJPR Umeda Loft Bldg.

12,492,970

18,586.97

18,586.97

100.0

2.6

RetailJPR Shibuya Tower
Records Bldg.

11,529,635

8,076.85

8,076.85

100.0

2.4

Retail

184,850,941

131,339.74

130,155.80

99.1

40.2

Total

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

3943

Asset Management Report(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 30th fiscal period (December 31, 2016).

Area Type

Property Name

Kanematsu Bldg.

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

Kanematsu Bldg. Annex

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

JPR Ningyo-cho Bldg.

17-4 Nihonbashi Ningyocho 1-chome, Chuoku, Tokyo

Shin-Kojimachi Bldg.

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

21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, TokyoMS Shibaura Bldg.

13-23 Shibaura 4-chome, Minato-ku, Tokyo

Gotanda First Bldg.

8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
TokyoFukuoka Bldg.

8-7 Yaesu 2-chome, Chuo-ku, Tokyo

JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
OfficeShinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex

Central Tokyo
Retail

14,732,428

12,900,000

2,463,118

2,590,000

1,985,194

2,570,000

2,471,104

3,230,000

3,284,492

3,240,000

11,062,067

11,400,000

3,001,383

2,520,000

2,988,515

3,040,000

5,226,596

5,080,000

2,876,660

4,580,000

13,502,136

13,800,000

15,498,425

16,200,000

Real estate593,805

861,000

Real estate

22,217,805

14,400,000

Real estate

3,859,814

2,690,000

Real estate

1,746,774

1,840,000

Real estate
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

2,842,552

3,360,000

8,719,225

8,510,000

5,330,693

5,810,000

4,823,527

6,480,000

14,960,086

11,500,000

Rokubancho Bldg.

2-9, etc., Rokubancho, Chiyoda-ku, TokyoJPR Harajuku Bldg.

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

Tokyo Tatemono Kyobashi Bldg.
JPR Sendagaya Bldg.

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

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

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

Science Plaza-Yonbancho Plaza

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

Shibadaimon Center Bldg.

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

JPR Shibuya Tower Records Bldg.

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

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

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
GINZA GATES

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

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

Real estate

3,327,781

2,940,000

5-14 Ginza 5-chome, Chuo-ku, Tokyo

10,130,940

10,800,000

FUNDES Suidobashi

20-8 Misakicho 2-chome, Chiyoda-ku, Tokyo

3,262,389

3,380,000

Arca East

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

4,343,727

6,190,000

JPR Chiba Bldg.

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest

2,272,901

1,840,000

2,502,077

2,530,000

1,446,746

1,810,000

6,931,171

7,900,000

2,970,620

4,560,000

2,899,640

3,320,000

Real estate

5,340,248

7,640,000

Real estate

5,528,169

5,970,000

Minami Azabu Bldg.

OfficeGreater Tokyo

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

Shinagawa Canal Bldg.

Shinjuku Center Bldg.

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

17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome, Kohokuku, Yokohama, Kanagawa

Kawaguchi Center Bldg.

1-8 Honcho 4-chome, Kawaguchi, Saitama

JPR Ueno East Bldg.

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

Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower

40

7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome, Shinagawaku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Form ofOwnership

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

JPR Nihonbashi-horidome Bldg.

44

Location

Appraisal ValueBook Valueas of December 31,
as of December 31,
2016
2016
(thousands of yen)(thousands of yen)
(Note 1)3,700,054

3,730,000

38,388,259

46,000,000

2,693,767

3,060,000

4,214,735

5,460,000

11,529,635

14,100,000

4,299,310

3,930,000

2,640,113

2,710,000

Japan Prime Realty Investment Corporation

Area Type

Property NameTokyo Tatemono Yokohama Bldg.
Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.

RetailGreater Tokyo

OfficeOlinas Tower

JPR Musashikosugi Bldg. (Note 2)
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.

OfficeOther Cities

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

RetailBenetton Shinsaibashi Bldg.

Form ofOwnership

Location
1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo

8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
6-12 Hakataeki-mae 2-chome, Hakata-ku,
Fukuoka, Fukuoka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka
16-7 Chayamachi, Kita-ku, Osaka, Osaka

Housing Design Center Kobe

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

JPR Chayamachi Bldg.

27,869,981

35,600,000

6,859,041

7,980,000

5,938,210

7,580,000

7,389,437

13,400,000

Real estate

1,748,787

2,710,000

Real estate

7,067,853

5,530,000

3,770,887

4,290,000

13,659,213

15,500,000

1,658,521

2,390,000

4,087,005

3,330,000

2,975,644

3,080,000

1,338,823

1,530,000

2,487,680

3,680,000

1,356,338

1,700,000

2,109,034

2,550,000

2,176,710

2,580,000

1,805,422

1,780,000

Real estate

3,935,590

2,730,000

Real estate

10,675,373

13,900,000

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

3-1 Bessho 7-come, Saitama, Saitama

JPR Umeda Loft Bldg.

Real estate
Real estate
Beneficiaryinterest
Beneficiaryinterest

1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1, etc., Kosugimachi 3-chome, Nakaharaku, Kawasaki, Kanagawa

Beneficiaryinterest
Beneficiaryinterest

5,064,015

3,950,000

12,492,970

14,500,000

Real estate

6,277,608

6,930,000

Beneficiaryinterest

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

Total

Appraisal ValueBook Valueas of December 31,
as of December 31,
2016
2016
(thousands of yen)(thousands of yen)
(Note 1)

5,942,003

6,290,000

401,294,854

437,981,000(Note 1) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”(Note 2) The book value and the appraisal value at end of period for JPR Musashikosugi Bldg. do not include the part of the land that was sold in association

with a redevelopment project.

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

Area Type

Property Name

Kanematsu Bldg.

9

100.0

1

100.0

302,752(Note 2)2.1
(Note 2)

10

100.0

1

100.0

JPR Ningyo-cho Bldg.

4Shin-Kojimachi Bldg.

16

100.0

90,510100.0106,418

0.6

4

0.7

17

JPR Crest Takebashi Bldg.

6

100.0

90,7800.6

MS Shibaura Bldg.

9

86.4

415,334

Gotanda First Bldg.

3

91.4

Fukuoka Bldg.

1

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

OfficeKanematsu Bldg. Annex

Central Tokyo

29th Fiscal Period
30th Fiscal Period(from Jan. 1, 2016 to Jun. 30, 2016)(from Jul. 1, 2016 to Dec. 31, 2016)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)362,644(Note 2)2.4
(Note 2)100.0

91,4120.6

100.0

106,425

0.7

6

100.0

96,294

0.6

2.9

10

100.0

385,1242.5

0.7(Note 2)

4

100.0

100.0

104,999(Note 2)

1

100.0

119,238(Note 2)0.8
(Note 2)

10

100.0

158,310

1.1

10

100.0

162,875

1.1

2

100.0

181,394

1.3

2

100.0

182,623

1.2

26

100.0

355,590

2.5

25

99.9

355,378

2.4

4145

Asset Management Report

OfficeOfficeRetailOther Cities

RetailGreater Tokyo

RetailCentral Tokyo

OfficeArea Type

Property NameBYGS Shinjuku Bldg.

26

99.5

551,720

3.9

25

98.1

557,197

3.7

Across Shinkawa Bldg. Annex

4

100.0

36,784

0.3

4

100.0

37,258

0.2

Shinjuku Center Bldg.

33

94.2

94.1

1

100.0

3.3
(Note 2)33

Minami Azabu Bldg.

463,549(Note 2)

1

100.0

490,412(Note 2)

3.2
(Note 2)

Shinagawa Canal Bldg.

4

89.9
100.0

0.3
(Note 2)89.9

144,620(Note 2)

4

Rokubancho Bldg.

1

100.0

49,070(Note 2)0.3
(Note 2)

JPR Harajuku Bldg.

9

100.0

234,494

1.6

9

100.0

249,654

1.7

Tokyo Tatemono Kyobashi Bldg.

9

100.0

204,818

1.4

8

89.1

213,657

1.4

JPR Nihonbashi-horidome Bldg.

6

100.0

191,948

1.3

5

88.1

181,866

1.2

JPR Sendagaya Bldg.

6

100.0

239,667

1.7

6

100.0

262,649

1.7

Ginza Sanwa Bldg.

7

94.8

118,094

0.8

8

96.8

114,101

0.8

Otemachi Tower (Land with Leasehold Interest)

2

100.0

1,581,000

11.1

2

100.0

1,581,000

10.5

Science Plaza-Yonbancho Plaza

25

97.5

115,123

0.8

24

96.0

112,799

0.7

Shibadaimon Center Bldg.

9

100.0

100.0

1

100.0

1.2
(Note 2)9

JPR Shibuya Tower Records Bldg.

175,930(Note 2)

1

100.0

179,301(Note 2)

1.2
(Note 2)

JPR Daikanyama (Note 3)

4

100.0

40,4940.3－－

10,331

0.1

JPR Jingumae 432

6

89.8

100.0

1

100.0

0.6
(Note 2)

7

Shinjuku Sanchome East Bldg.

83,403(Note 2)

1

100.0

83,892(Note 2)0.6
(Note 2)

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

1

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

GINZA GATES

－

－

－

－

7

100.0

19,0550.1

FUNDES Suidobashi

－

－

－

－

6

100.0

9,027

0.1

Arca East585.3

233,165

1.6

6

100.0

239,555

1.6

JPR Chiba Bldg.

36

92.0

127,242

0.9

36

92.0

125,824

0.8

JPR Yokohama Nihon Odori Bldg.

12

94.8

116,495

0.8

12

94.8

122,327

0.8

Shinyokohama 2nd Center Bldg.

21

96.0

98,759

0.7

20

94.1

101,164

0.7

Kawaguchi Center Bldg.

44

100.0

409,317

2.9

44

100.0

413,945

2.7

JPR Ueno East Bldg.

9

100.0

171,997

1.2

9

100.0

178,228

1.2

Tachikawa Business Center Bldg.

19

98.1

148,154

1.0

19

97.6

145,908

1.0

Rise Arena Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

Yume-ooka Office Tower

38

97.5

321,618

2.3

38

100.0

329,459

2.2

Olinas Tower

14

98.6

983,545

6.9

14

98.6

1,017,555

6.7

Tokyo Tatemono Yokohama Bldg.

14

100.0

294,720

2.1

14

100.0

298,756

2.0

Omiya Prime East

4

100.0

100.0

1

100.0

1.9
(Note 2)

4

Tanashi ASTA

264,785(Note 2)

1

100.0

266,988(Note 2)

1.8
(Note 2)Cupo-la Main Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

JPR Musashikosugi Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

Musashiurawa Shopping Square

3

100.0

126,996

0.9

3

100.0

126,996

0.8

Kawasaki Dice Bldg.

29

100.0

495,707

3.5

29

100.0

495,820

3.3

Niigata Ekinan Center Bldg.

8

100.0

128,294

0.9

8

100.0

126,160

0.8

Tokyo Tatemono Honmachi Bldg.

8

91.0

150,898

1.1

7

89.5

159,961

1.1

JPR Hakata Bldg.

42

98.7

147,694

1.0

43

99.8

149,576

1.0

JPR Naha Bldg.

21

100.0

91,622

0.6

21

100.0

96,126

0.6

Sompo Japan Sendai Bldg.

15

100.0

187,254

1.3

15

100.0

187,274

1.2

Sompo Japan Wakayama Bldg.

14

100.0

110,735

0.8

14

100.0

112,132

0.7

Tenjin 121 Bldg.

16

100.0

101,134

0.7

15

98.3

103,678

0.7

JPR Dojima Bldg.

7

50.1

163,704

1.1

8

66.4

61,0170.4

JPR Hakata-chuo Bldg.

6

100.0

80,378

0.6

6

100.0

80,9720.5

JPR Nagoya Fushimi Bldg.

3

95.0

135,211

0.9

3

95.0

138,365

0.9

Yakuin Business Garden

18

99.9

428,397

3.0

18

99.9

473,910

3.1

Benetton Shinsaibashi Bldg. (Note 4)

－

－

87.6

1

100.0

－
(Note 2)9JPR Umeda Loft Bldg.

－(Note 2)

1

100.0

721,703(Note 2)

4.8
(Note 2)Benetton Shinsaibashi Bldg. (Note 4)

1

100.0

(Note 2)

(Note 2)－－

Housing Design Center Kobe

1

100.0

(Note 2)

(Note 2)

1

100.0

－
(Note 2)－
(Note 2)

6
661

100.0
98.1

157,495
14,246,699

1.1
100.0

6
679

100.0
98.6

160,595
15,105,172

1.1
100.0

JPR Chayamachi Bldg.
Total

4642

29th Fiscal Period
30th Fiscal Period(from Jan. 1, 2016 to Jun. 30, 2016)(from Jul. 1, 2016 to Dec. 31, 2016)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)Japan Prime Realty Investment Corporation(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property.
If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice
Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance with the lease conditionsof the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons.
(Note 3) JPR sold JPR Daikanyama as of September 29, 2016.
(Note 4) The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016 in accordance with the cancellation of the lease agreement(master lease agreement) with Benetton Japan Co., Ltd.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above.
There were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of
the 30th fiscal period.

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for currently planned renovations, etc. for JPR-owned real estate and entrusted
real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses include portions that areclassified as expenses in accounting.
Planned (millions of yen)
Property Name

Location

JPR Chayamachi
Bldg.

Osaka City, Osaka

Olinas Tower

Sumida Ward,Tokyo

MS Shibaura Bldg.

Minato Ward,Tokyo

Olinas Tower

Sumida Ward,Tokyo

JPR Dojima Bldg.

Osaka City, Osaka

Total
Value

Payment
duringthe 30th
Fiscal Period

AmountAlready
Paid

Nov. 2016~Jun. 2017

137

－

－

Mar. 2017~Jun. 2017

122

－

－

Jan. 2017~Jun. 2017

51

－

－

Mar. 2017~Jun. 2017

40

－

－

Jan. 2017~Feb. 2017

30

－

－

PurposeSchedule

Replacement of air conditioning units
in common areas on 1st through 8th
floors and in exclusive areas on 4th
through 9th floors
Replacement of lighting equipmentwith LED lamps in leased offices (6floors)Replacement of air conditioning uniton half of 6th floor
Replacement of lighting equipmentwith LED lamps in common areas (14floors)Installation of new roof-top
signboards (2 units) and installation of
new side signboard (1 unit)(2) Capital Expenditures during the 30th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 30th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting new
tenants. In addition, aside from these constructions, JPR conducted construction of 602 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name

Location

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

Kanematsu Bldg.
Other Properties

Chuo Ward, Tokyo

Purpose2nd phase of replacement of air
conditioning units

Renewal of automatic fire alarm
integrated control panel andreplacement of security officeReplacement of security systems

PeriodConstruction
Expenses(millions of yen)Jul. 2016~Dec. 2016176

Jun. 2016~Dec.2016

53

Oct. 2016~Dec. 201642

4th phase of renewal of through-theAug. 2016~Sept. 2016
wall air conditioning units
Repair of common areas, installation of office automation floors,
replacement of air conditioning units, etc.
Total

32

4347
419
724

Olinas Tower

Tokyo

Asset Management Report
JPR Dojima Bldg.

Osaka City, Osakawith LED lamps in common areas (14floors)Installation of new roof-top
signboards (2 units) and installation of
new side signboard (1 unit)

Mar. 2017~Jun. 2017

40

－

－

Jan. 2017~Feb. 2017

30

－

－

(2) Capital Expenditures during the 30th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 30th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting new
tenants. In addition, aside from these constructions, JPR conducted construction of 602 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name

Location

Purpose2nd phase of replacement of air
conditioning units

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

Kanematsu Bldg.

Construction
Expenses(millions of yen)

PeriodRenewal of automatic fire alarm
integrated control panel andreplacement of security officeReplacement of security systems

Jul. 2016~Dec. 2016176

Jun. 2016~Dec.2016

53

Oct. 2016~Dec. 201642

4th phase of renewal of through-theAug. 2016~Sept. 2016
wall air conditioning units
Repair of common areas, installation of office automation floors,
replacement of air conditioning units, etc.
Total

Chuo Ward, Tokyo

Other Properties

32
419
724

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

(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.
(Millions of yen)

27th Fiscal Period(Jan. 1, 2015 Jun. 30, 2015)

28th Fiscal Period(Jul. 1, 2015 Dec. 31, 2015)

29th Fiscal Period(Jan. 1, 2016 Jun. 30, 2016)

30th Fiscal Period(Jul. 1, 2016 Dec. 31, 2016)

925

877

934

940

936

44Deposits during the period

378

473

276

494

393

Amounts used from
deposits during the period

426

416

270

498

398

Deposits carried forward to
the next period

877

934

940

936

931

Operation Period
Balance of deposits at
beginning of current period

48

26th Fiscal Period(Jul. 1, 2014 Dec. 31, 2014)

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
29th Fiscal Period(Jan. 1, 2016 - Jun. 30, 2016)

Item(a) Asset Management Fees (Note)

30th Fiscal Period(Jul. 1, 2016 - Dec. 31, 2016)

532,074
75,000266,670
190,403
77,0476,600
30,72399,262745,707

512,078

Fixed compensation

75,000

Incentive-based compensation 1

254,635

Incentive-based compensation 2

182,443(b) Administrative Service and Custodian Fees

78,833(c) Directors' Fee

6,600(d) Trust Fees

31,077(e) Other Expenses

85,525
Total

714,115(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (30th fiscal period: 33,375 thousand yen)
have been paid and included in the book value of each property.

(2) Status of Loans Payable
As of December 31, 2016 JPR has the following loans payable.

Long-Term Loans Payable

Short-Term
Loans
PayableCategory

LenderMizuho Bank, Ltd.

Oct. 24, 2016

Total

－

7,000

－

7,000

Repayment
Date

0.230%Jul 5, 2017

Mar. 30, 2017

Mizuho Bank, Ltd.

Mar. 30, 2012

7,000

7,000

1.093%

Mizuho Bank, Ltd.

Dec. 5, 2012

2,000

2,000

1.027%

Dec. 5, 2019

Mizuho Bank, Ltd.

Nov. 27, 2013

3,000

3,000

0.970%

Nov. 27, 2020

Mizuho Bank, Ltd.

Jun. 27, 2014

5,000

5,000

1.178%

Jun. 27, 2023

Mizuho Bank, Ltd.

Mar. 11, 2015

2,000

2,000

1.011%

Mar. 11, 2024

Mizuho Bank, Ltd.

Mar. 24, 2015

2,000

2,000

1.056%

Mar. 24, 2025

Mizuho Bank, Ltd.
Bank of Tokyo-Mitsubishi UFJ,Ltd.
Bank of Tokyo-Mitsubishi UFJ,Ltd.
Bank of Tokyo-Mitsubishi UFJ,Ltd.
Bank of Tokyo-Mitsubishi UFJ,Ltd.
Bank of Tokyo-Mitsubishi UFJ,Ltd.
Bank of Tokyo-Mitsubishi UFJ,Ltd.
Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Development Bank of Japan Inc.

Repayment
MethodUse

Principal lump sum
repayment on(Note 3)maturity

Feb. 4, 2016

5,000

5,000

0.804%

Feb. 4, 2026

Aug. 8, 2012

1,000

1,000

1.178%

Aug. 8, 2019

Aug. 8, 2012

1,000

1,000

0.948%

Aug. 8, 2017

Sept. 5, 2012

3,000

3,000

0.919%

Dec. 5, 2012

1,000

1,000

1.027%

Sept. 5, 2017 Principal lump sum
repayment onmaturity
Dec. 5, 2019Nov. 27, 2013

3,000

3,000

0.970%

Nov. 27, 2020

Jun. 27, 2014

4,000

4,000

0.889%

Jun. 25, 2021

Mar. 25, 2016

5,000

5,000

0.510%

Mar. 25, 2024

Mar. 30, 2012

6,400

6,400

1.093%

Mar. 30, 2017

Dec. 5, 2012

1,000

1,000

1.027%

Dec. 5, 2019

Jun. 27, 2013

3,000

3,000

1.265%

Jun. 26, 2020

Jun. 27, 2014

2,500

2,500

1.033%

Jun. 27, 2022

Jun. 26, 2009

2,600

2,500

3.190%

Jun. 27, 2019

Jun. 27, 2013

820

820

1.449%

Jun. 25, 2021

Development Bank of Japan Inc.

Dec. 5, 2013

2,000

2,000

1.188%

Dec. 3, 2021

Development Bank of Japan Inc.

Mar. 24, 2015

2,000

2,000

1.056%

Mar. 24, 2025

Development Bank of Japan Inc.

Dec. 15, 2016

－

3,000

0.843%

Jun. 14, 2027

Shinsei Bank, Ltd.

Apr. 5, 2012

5,000

5,000

1.397%

Apr. 5, 2019

Shinsei Bank, Ltd.

Sept. 24, 2013

2,000

2,000

1.076%

Sept. 24, 2020

Development Bank of Japan Inc.

46

Balance as Average
Balance as ofof Dec. 31, Interest
Jul. 1, 2016
Drawdown Date
2016
Rate (%)(millions of(millions of (Note 1)
yen)
yen)
(Note 2)

Remarks
Unsecured/
Unguaranteed/
Non-SubordinatedUnsecured/(Note 3)

Unguaranteed/
Non-Subordinated(Note 4)

Principal lump sum
repayment onmaturity49

Asset Management Report

Long-Term Loans Payable

Category

LenderBalance as Average
Balance as ofof Dec. 31, Interest
Jul. 1, 2016
Drawdown Date
2016
Rate (%)(millions of(millions of (Note 1)
yen)
yen)
(Note 2)

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

Shinsei Bank, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Aozora Bank, Ltd.

Dec. 15, 2016－

Aug. 29, 2011

5,000

Aug 31, 2015

1,000

Dec. 15, 2016－

Repayment
Date

1.134%

Dec. 5, 2024

1,000

0.843%

Jun. 14, 2027

5,000

1.184%

Aug. 29, 2017

1,000

0.873%

Aug. 31, 2023

2,000

0.633%

Dec. 13, 2024

2,000

Repayment
MethodJul. 3, 2012

900

900

0.994%

Jul. 3, 2017

Aozora Bank, Ltd.

Aug. 8, 2012

2,000

2,000

1.178%

Aug. 8, 2019

Aozora Bank, Ltd.

Aug. 27, 2012

2,000

2,000

0.985%

Aozora Bank, Ltd.

Aug. 30, 2012

2,000

2,000

1.146%

Aug. 25, 2017 Principal lump sum
Aug. 30, 2018
repayment on

Aozora Bank, Ltd.

Sept. 30, 2013

1,000

1,000

1.069%

Sept. 24, 2020

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2012

4,000

4,000

1.093%

Mar. 30, 2017

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

3,000

1.076%

Feb. 4, 2020

Shinkin Central Bank

Dec. 5, 2013

3,000

3,000

0.689%

Dec. 5, 2018

Shinkin Central Bank

Dec. 15, 2016

－

2,000

0.388%

Dec. 14, 2021

The Bank of Fukuoka, Ltd.

Jul. 7, 2011

2,000

－

1.170%The Bank of Fukuoka, Ltd.

Sept. 24, 2013

1,000

1,000

0.911%

Jul. 7, 2016
Sept. 24, 2019

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka, Ltd.
Meiji Yasuda Life Insurance
Company
Meiji Yasuda Life Insurance
Company
The Nishi-Nippon City Bank, Ltd.

Jul. 7, 2016

－

2,000

0.480%

Jul. 7, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15, 2016

ORIX Bank Corporation

Jun. 21, 2011

3,406

3,340

1.800%

Jun. 21, 2018

Feb. 5, 2015

1,000

1,000

1.042%

Feb. 5, 2025

May 27, 2016

3,000

3,000

0.646%

May 27, 2026

－

1,000

0.388%

Feb. 4, 2013

1,000

1,000

0.786%

Dec.14, 2021
Feb. 5, 2018

ORIX Bank Corporation

Nov. 27, 2013

2,000

2,000

0.762%

May 27, 2019The Shinkumi Federation Bank

Feb. 4, 2013

3,000

3,000

0.786%

Taiyo Life Insurance Company

Jun. 4, 2013

1,000

1,000

0.949%

Feb. 5, 2018
Jun. 4, 2018

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

Sept. 24, 2015

1,000

1,000

0.969%

Sept. 24, 2024

The Chugoku Bank, Ltd.

Sept. 24, 2013

1,000

1,000

0.758%

Sept. 25, 2018

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816%

Oct. 6, 2023

The Norinchukin Bank

Dec. 5, 2014

1,000

1,000

0.440%

Dec. 5, 2017

The Norinchukin Bank
Sumitomo Life Insurance
Company
National Mutual Insurance
Federation of Agricultural
Cooperative
Sompo Japan Nipponkoa
Insurance Inc.
Sompo Japan Nipponkoa
Insurance Inc.
The Hachijuni Bank, Ltd.

Dec. 15, 2016

－

2,000

0.388%

Dec. 14, 2021

Oct. 11, 2016

－

2,000

0.453%

Oct. 11, 2024

Dec. 15, 2016

－

2,000

0.388%

Dec. 14, 2021

Apr. 11, 2012

2,000

－

0.981%

Oct. 11, 2016

Dec. 25, 2015

2,000

2,000

0.759%

Dec. 25, 2023

Sept. 24, 2014

1,000

－

0.424%

Sept. 26, 2016

The Hachijuni Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.489%

Oct. 9, 2020

The Hachijuni Bank, Ltd.

Sept. 26, 2016

－

1,000

0.209%

Sept. 24, 2021

Resona Bank, Limited

Mar. 30, 2012

2,000

2,000

1.093%

Mar. 30, 2017

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816%

Daido Life Insurance Company
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
Sumitomo Mitsui Trust Bank,
LimitedDec. 27, 2013

1,000

1,000

0.710%

Oct. 6, 2023
Dec. 27, 2018

Dec. 27, 2013

1,000

1,000

0.710%

Dec. 27, 2018

Mar. 25, 2016

1,000

1,000

0.691%

Mar. 25, 2026

134,626

147,460

Total

Use

Remarks(Note 3)

Unguaranteed/maturity(Note 5)

Unsecured/

Non-SubordinatedPrincipal lump sum
repayment onmaturity(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loan arrangement
paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter on the 27th day of every 6 months. In addition, repayment of
2,100 million yen will be made on maturity date June 27, 2019.
(Note 5) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter on the 27th day of every 6 months. In addition, repayment of 3,208
million yen will be made on maturity date June 21, 2018.

50

47

Japan Prime Realty Investment Corporation(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of December 31, 2016 are as follows.
Balance as of
Balance as of
CouponRate
Jul. 1, 2016
Dec. 31, 2016(%)
(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Thirteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

7,000

-

0.950

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

5,000

5,000

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds

May 31, 2013

5,000

5,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds

Jul. 22, 2014

2,000

2,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

41,50034,500

Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

(4) Subscription Rights to Shares
Not applicable

48

51

Asset Management Report

6. Acquisitions and Sales during the 30th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Acquisition
Type of Asset

Real estate
Real estate
Real estate
Beneficiaryinterest

Sale

Acquisition Date

AcquisitionPrice(thousands ofyen)(Note)

Sale Date--

September 29, 2016

1,880,000--

October 31, 2016

5,869

Real Estate NameJPR Daikanyama
Part of land of JPR
Musashikosugi Bldg.

Sale Price Book Value Difference
Sale
Sale Profit
(A)
(B)
(C)
Expense and Loss(thousands (thousands(A)-(B)(D)(C)-(D)of yen)of yen)(thousands (thousands (thousands(Note)(Note)
of yen)of yen)of yen)2,178,967 ሺ298,967)
5,284

584

1,553 ሺ300,521)-

584

GINZA GATESDecember 15, 2016

10,100,000

-

-

-

-

-

-

FUNDES Suidobashi

December 15, 2016

3,250,000

-

-

-

-

-

-

Total

-

13,350,000-

1,885,869

2,184,252 ሺ298,383)

1,553 (299,936)

Real Estate Appraiser

Appraisal Date

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

(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 30th fiscal period.

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

Sale

Real estate

Sale

Real estate

Acquisition

Real estate

Acquisition

Beneficiaryinterest

Acquisition Price Real Estate
or Sale Price Appraisal Value(Note 1)
(Note 2)(thousands of(thousands of
yen)
yen)

Real Estate NameTransaction Date

JPR Daikanyama

September 29, 2016

1,880,000

1,600,000

October 31, 2016

5,869

5,660

GINZA GATESDecember 15, 2016

10,100,000

10,800,000

FUNDES Suidobashi

December 15, 2016

3,250,000

3,380,000

Part of land of JPR
Musashikosugi Bldg.

The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
Institute

August 15, 2016
September 15, 2016
November 30, 2016
November 30, 2016

(Note 1) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as realestate transaction brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 2) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices ofReal Estate Subject to Securitization.”

52

49

Japan Prime Realty Investment Corporation(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status(Thousands of yen)Transaction Amount, Etc.
Category
Purchase Amount, Etc.
Total

Sale Amount, Etc.
13,350,000

1,885,869

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

13,350,000(100.0%)－(－%)

13,350,000(100.0%)－(－%)2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

264,702

Outsourcing Fees

543,920

Tenant Brokerage Fees

51,241

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
226,789
Taisei-Yuraku Real Estate Co., Ltd.
6,418
Prime Place Co., Ltd.
265
Tokyo Tatemono Co., Ltd.
412,811
Prime Place Co., Ltd.
802
Tokyo Tatemono Co., Ltd.
20,047(Thousands of yen)
Ratio to Total
Amount(B/A))
85.7%
2.4%
0.1%
75.9%
0.1%
39.1%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 16,574 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or major
shareholders during the 30th fiscal period.
Tokyo Tatemono Co., Ltd.
Taisei-Yuraku Real Estate Co., Ltd.
Tokyo Real Estate Management Co., Ltd.

804,669 thousand yen
7,320 thousand yen
239,470 thousand yen

Taisei Corporation

36,814 thousand yen

Shinjuku Center Building Management Co., Ltd.

32,293 thousand yen(Note 4) Taisei Corporation and Yasuda Real Estate Co., Ltd. are no longer categorized as interested parties of JPR, as they transferred part of the shares of Tokyo Realty
Investment Management, Inc. they own to Tokyo Tatemono Co, Ltd. as of December 22, 2016.

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

50

53

Asset Management Report

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

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

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

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

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

－

40

January 22, 2002 (Note)

60

－

100

Accumulated Total

100

－

100

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

(2) Units Held
Number of Units Held at End
of Period

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

Ratio to Total Units Issued
and Outstanding (%)

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

100

20

0.0

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

100

20

0.0

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

100

20

0.0

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

100

20

0.0

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

100

20

0.0

26th Fiscal Period(Jul. 1, 2014 – Dec. 31, 2014)

100

20

0.0

27th Fiscal Period(Jan. 1, 2015 – Jun. 30, 2015)

100

20

0.0

28th Fiscal Period(Jul. 1, 2015 – Dec. 31, 2015)

100

20

0.0

29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)

100

20

0.0

30th Fiscal Period(Jul. 1, 2016 – Dec. 31, 2016)

100

20

0.0

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

54

51

Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation Owning Foreign RealNot applicable

11. Other(1) Notice
There are no major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors
meeting in the 30th fiscal period.

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

5355

Financial Statements(1) Balance Sheets(Thousands of yen)
End of 29th Fiscal Period(Jun. 30, 2016)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net*114,277,826
12,137,178
395,640
122,519
10,257

17,896,631
12,075,668
319,276
157,568
9,075

26,943,421

30,458,219

57,149,742(13,477,853)

57,346,890(14,201,649)

43,671,889*143,145,241

Buildings in trust
Accumulated depreciation

87,786,352(28,675,361)

88,897,226(29,702,517)

Buildings in trust, net

59,110,990

59,194,709

Structures
Accumulated depreciation

51,715
ሺ17,671)

49,920(18,152)

Structures, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net*1

Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net

Tools, furniture and fixtures, net

Tools, furniture and fixtures in trust, net

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

31,767
120,517(77,245)

45,381

43,272

742,172
ሺ399,899)

748,404(419,479)

342,273*1

382,535

375,227

62,401
ሺ36,881)

75,134
ሺ38,879)

178,038
ሺ118,882)

36,254

186,096(125,281)

59,156*1

328,925
1,677,053(1,301,826)

25,519Tools, furniture and fixtures in trust
Accumulated depreciation
Land
Land in trust
Construction in progress in trust

34,044

119,876
ሺ74,494)

1,655,815
ሺ1,273,279)

Tools, furniture and fixtures
Accumulated depreciation

5654

End of 30th Fiscal Period(Dec. 31, 2016)

108,898,331
173,873,374－

60,814*1

106,890,048
176,493,700
8,489

386,443,498

386,608,451

4,794,109
1,658

14,689,483
1,593

4,795,768

14,691,077

241,612
120,730

297,969
86,527362,342

384,497

391,601,608

401,684,026

163,51729,728143,222
22,078193,245

165,300

418,738,276

432,307,546

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 29th Fiscal Period(Jun. 30, 2016)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust*1

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

End of 30th Fiscal Period(Dec. 31, 2016)

2,003,354－
24,732,000
7,000,000
588,151
94,072605
256,7442,739,606

2,476,880
7,000,000
32,632,000
5,000,000
665,717
88,498605
217,870
2,683,275

37,414,534

50,764,846

34,500,000
109,894,000
7,686,149
12,859,392

29,500,000
114,828,000
7,672,848
12,902,843*1

164,939,541

164,903,691

202,354,076

215,668,538

210,395,598

210,395,598

73,94673,946

Total voluntary reserve

73,94673,946

Unappropriated retained earnings(undisposed losses)

5,914,654

6,169,462

Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*35,988,601

6,243,409

216,384,200

216,639,008

216,384,200
418,738,276*3

216,639,008
432,307,546

5557

Financial Statements(2) Statements of Income and Retained Earnings(Thousands of yen)
29th Fiscal Period(Jan. 1, 2016 –Jun. 30, 2016)
Operating revenue
Rent revenue-real estate*1

14,246,699*1

Gain on sale of real estate

*2

－

*2

14,246,699

Total operating revenue
Operating expenses
Expenses related to rent business
Loss on sale of real estate
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management association accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other

*1
*2

6,658,243－
512,078
78,8336,600
31,07785,525

15,105,172
584
15,105,757*1*2

6,898,364
300,521532,074
77,0476,600
30,72399,262

7,372,358

7,944,593

6,874,340

7,161,163

2,497
53,60011,909

233
3,147
4,329

68,0087,709

718,01958,432
237,846
21,632
7,567
1,526

703,974
55,202
227,821
20,2957,650
527

1,045,023

1,015,472

Ordinary income

5,897,325

6,153,400

Income before income taxes

5,897,325

6,153,400

Income taxes-current

605

605

Total income taxes

605

605

Net income

5,896,720

6,152,795

Retained earnings brought forward
Unappropriated retained earnings (undisposed losses)

17,934
5,914,654

16,666
6,169,462

Total non-operating expenses

56

58

30th Fiscal Period(Jul. 1, 2016–
Dec. 31, 2016)

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)
29th Fiscal Period

30th Fiscal Period(Jan. 1, 2016 –Jun. 30, 2016)(Jul. 1, 2016–
Dec. 31, 2016)

Unitholders' equity
Unitholders' capital
Balance at beginning of current period

210,395,598

210,395,598

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

210,395,598

210,395,598

73,94673,946

Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period－－

73,94673,946

5,769,258

5,914,654

Dividends from surplus(5,751,324)(5,897,988)

Net income

5,896,720

6,152,795

Balance at end of current period
Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period
Changes of items during the period

Total changes of items during the period

145,396

254,8075,914,654

6,169,462

5,843,205

5,988,601

Balance at end of current period

145,396
5,988,601

6,243,409

Total unitholders' equity
Balance at the beginning of current period

216,238,803

216,384,200

Balance at end of current period

145,396
216,384,200

216,639,008

Total net assets
Balance at beginning of current period

216,238,803

216,384,200

145,396
216,384,200

216,639,008

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

254,807

Changes of items during the period
Total changes of items during the period

254,807

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

254,807

57
59

Financial Statements(4) Statements of Cash Distributions
29th Fiscal Period(January 1, 2016 –June 30, 2016)
I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Retained earnings carried forward

Method for calculating distribution amount

58

60

30th Fiscal Period(July 1, 2016 –December 31, 2016)

5,914,654,871 yen
5,897,988,000 yen(6,756 yen)
16,666,871 yen

6,169,462,812 yen
6,152,904,000 yen(7,048 yen)
16,558,812 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 5,897,988,000
yen, which is the largest integral multiple ofthe number of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,152,904,000
yen, which is the largest integral multiple ofthe number of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)

Net cash provided by (used in) operating activities
Income before income taxes

29th Fiscal Period

30th Fiscal Period(Jan. 1, 2016 –Jun. 30, 2016)(Jul. 1, 2016–
Dec. 31, 2016)

5,897,325

6,153,400

1,885,354

1,884,057

Amortization of investment corporation bond issuance costs

21,632

20,295

Amortization of investment unit issuance expenses

7,567

7,650

�2,497)

931,796

Depreciation and amortization

Interest income
Interest expenses

955,865

Decrease (increase) in operating accounts receivable�87,565)

Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease in property, plant and equipment
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust

Purchase of intangible assets
Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable

Redemption of investment corporation bonds
Dividends paid
Net cash provided by (used in) financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at beginning of current period
Cash and cash equivalents at end of current period

40,174

117,673

�55,736)
�20,382)
130,356(233)
76,364
�35,049)
258,291
77,573

�38,874)(56,330)－

2,184,252

�14,396)

11,245,455

�969,925)

�937,370)

8,875,370

2,497

(510)

�217,740)
233

(258)

7,907,431

10,308,059

�265,593)(3,625,015)

�837,967)－(46,891)

�173,750)
322,168�309,784)
400,221

�392,949)

�9,895,373)(56,357)

�105,669)
175,572

�187,965)
399,505�911,597)

�13,688,253)

�1,000,000)
14,000,000

18,000,000

�13,166,000)

�5,166,000)(5,917,214)

6,937,489－－

�5,751,214)
1,078,619

7,000,000-

�7,000,000)
�5,896,510)
3,557,295

25,336,385

26,415,004*1 26,415,004*1 29,972,299

59
61

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

(Significant Accounting Policies)
1. Depreciation Method for Property
and Equipment

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

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

6062(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental expenses.
Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as an acquisition cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized were nullfor the fiscal period ended June 30, 2016 and amounted to 503,317 thousand yen for the fiscal periods ended
December 31, 2016.
Cash and cash equivalents in the Statements of Cash Flows include the following(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)
End of 29th Fiscal Period(as of June 30, 2016)
Buildings (net)
Machinery and equipment (net)
Land
Total

End of 30th Fiscal Period(as of December 31, 2016)

111,427

109,559

2,568

2,397

399,183
513,179

399,183
511,139

Secured liabilities are as follows:(Thousands of yen)
End of 29th Fiscal Period(as of June 30, 2016)
Tenant leasehold and security deposits
Total

End of 30th Fiscal Period(as of December 31, 2016)
15,536

15,536

15,536

15,536

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.
(Thousands of yen)
End of 29th Fiscal Period(as of June 30, 2016)
Credit limit
Outstanding debts at end of period
Unused commitment line at end of period

End of 30th Fiscal Period(as of December 31, 2016)
28,000,000

24,000,000－－

28,000,000

24,000,000*3. Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 29th Fiscal Period(as of June 30, 2016)

End of 30th Fiscal Period(as of December 31, 2016)
50,00050,0006163

Financial Statements(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)

29th Fiscal Period

30th Fiscal Period(January 1, 2016 –June 30, 2016)(July 1, 2016 –December 31, 2016)

A. Rent Revenue-Real Estate
Rent Revenue

9,731,276
1,581,000
1,730,426
257,579
61,41322,12436,2109,982,743
1,581,000
1,717,771
259,30761,714
21,711
39,866

13,420,030

13,664,114

668,408
5,044
83,396

767,084
5,771
398,303

Income equivalent to expenses for restoration
to original condition

43,386

249,769

Other miscellaneous income

26,433

20,129Rents
Land rents
Common charges
Parking revenues
Advertising expenses
Antenna use fees
Other
Subtotal
Other rental revenues
Incidental income
Time-based parking revenues
Cancellation charges

Subtotal

826,668

1,441,058

Total rent revenue-real estate

14,246,699

15,105,172

530,228
765,744
2,067,746
27,362420,046
240,310580,300
1,885,187
141,315

542,555794,249
2,059,250
25,900586,870
248,127
591,197
1,884,057
166,153

6,658,243

6,898,364

7,588,456

8,206,808

B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
Depreciation
Other
Total expenses related to rent business
C. Profits(A-B)*2. Breakdown of Gain/Loss on Sale of Real Estate

A Portion of Land of JPR Musashikosugi Bldg.
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate
JPR Daikanyama
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Loss on sale of real estate

6462(Thousands of yen)
29th Fiscal Period

30th Fiscal Period(January 1, 2016 –June 30, 2016)(July 1, 2016 –December 31, 2016)

－
－
－
－

5,869
5,284
－
584

－
－
－
－

1,880,000
2,178,967
1,553
300,521

Japan Prime Realty Investment Corporation(Notes to Statements of Changes in Unitholders’ Equity)
29th Fiscal Period(January 1, 2016 – June 30, 2016)

30th Fiscal Period(July 1, 2016 – December 31, 2016)

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

5,000,000 units

5,000,000 units

873,000 units

873,000 units(Notes to Statements of Cash Flows)*1. Relationship between the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows and the Amounts of theCorresponding Accounts on the Balance Sheets(Thousands of yen)
29th Fiscal Period(January 1, 2016 – June 30, 2016)

30th Fiscal Period(July 1, 2016 – December 31, 2016)

14,277,826

17,896,631

Cash and deposits in trust

12,137,178

12,075,668

Cash and cash equivalents

26,415,004

29,972,299

Cash and deposits(Leases)
Future lease revenues under non-cancelable operating leases(Thousands of yen)
29th Fiscal Period(January 1, 2016 – June 30, 2016)

30th Fiscal Period(July 1, 2016 – December 31, 2016)

Due within one year

6,766,426

6,452,339

Due after one year

12,618,587

12,859,051

Total

19,385,014

19,311,390(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of shortterm funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to management for interest rate
fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit risks, but risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing acommitment line agreement with the main lending financial institutions, and also having statements of cash receipts anddisbursements prepared by the financial division.

6365

Financial Statements(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values based on reasonablecalculations when there is no market price. Certain assumptions, etc. are used in calculating those values and there may be cases
where the values will vary when different assumptions, etc. are used.
2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of June 30, 2016 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).
Carrying Value(Note 1)(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

14,277,826

14,277,826－(2)

Cash and deposits in trust

12,137,178

12,137,178－(3)

Short-term loans payable

－

－

－

(4)

Current portion of long-term loans payable(24,732,000)(24,887,253)

155,253(5)

Current portion of investment corporation bonds(7,000,000)(7,018,900)

18,900(6)Investment corporation bonds(34,500,000)(36,773,623)

2,273,623(7)

Long-term loans payable(109,894,000)(113,558,707)

3,664,707

The following are the carrying values and estimated fair values as of December 31, 2016 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)
Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

17,896,631

17,896,631－(2)

Cash and deposits in trust

12,075,668

12,075,668－(3)

Short-term loans payable(7,000,000)(7,000,000)－(4)

Current portion of long-term loans payable(32,632,000)(32,748,950)

116,950(5)Current portion of investment corporation bonds(5,000,000)(5,025,000)

25,000(6)Investment corporation bonds(29,500,000)(31,233,681)

1,733,681(7)

Long-term loans payable(114,828,000)(116,946,458)

2,118,458(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thus statedat that book value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the book value and is thus stated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as
it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans
payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being
applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since
it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.

64

66

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 29th Fiscal Period(as of June 30, 2016)

Category

End of 30th Fiscal Period(as of December 31, 2016)

Tenant leasehold and security deposits

7,686,149

7,672,848

Tenant leasehold and security deposits in trust

12,859,392

12,902,843(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 29th fiscal period (June 30, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

14,277,826

－

－

－

－

－

Cash and deposits in trust

12,137,178

－

－

－

－

－

Scheduled redemption of monetary claims to be due after the account closing date of the 30th fiscal period (December 31, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Cash and deposits

17,896,631

－

－

－

－

－

Cash and deposits in trust

12,075,668

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after
the account closing date of the 29th fiscal period (June 30, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

－

－

－

－

－

－

Investment corporation bonds

7,000,000

10,000,000

2,000,000

4,000,000－

18,500,000

Long-term loans payable

24,732,000

21,374,000

17,200,000

14,000,000

15,820,000

41,500,000

Short-term loans payable

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after the accountclosing date of the 30th fiscal period (December 31, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Short-term loans payable

7,000,000

－

－

－

－

－

Investment corporation bonds

5,000,000

7,000,000

4,000,000－－

18,500,000

Long-term loans payable

32,632,000

16,408,000

17,100,000

17,000,000

14,820,000

49,500,000

Due after FourYears throughFive Years

Due after Five
Years

(Securities)
29th fiscal period (as of June 30, 2016)
Not applicable
30th fiscal period (as of December 31, 2016)
Not applicable

65
67

Financial Statements(Derivative Transactions)
29th fiscal period (as of June 30, 2016)
Not applicable as JPR conducted no derivative transactions
30th fiscal period (as of December 31, 2016)
Not applicable as JPR conducted no derivative transactions(Retirement Benefits)
29th fiscal period (as of June 30, 2016)
Not applicable as JPR does not have any retirement benefit system
30th fiscal period (as of December 31, 2016)
Not applicable as JPR does not have any retirement benefit system(Tax Effect Accounting)
1. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting
29th Fiscal Period(January 1, 2016 – June 30, 2016)
Effective statutory tax rate

30th Fiscal Period(July 1, 2016 – December 31, 2016)32.31%

31.74%(Adjustment)
Deductible cash distributions(32.31%)(31.74%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

(Equity Method Income and Retained Earnings)
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable as JPR does not have any affiliated companies
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
2. Subsidiaries
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
3. Sister Companies
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable66

68

Japan Prime Realty Investment Corporation

4. Directors and Major Individual Unitholders
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable(Asset Retirement Obligations)
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.
[Related Information]
29th fiscal period (January 1, 2016 – June 30, 2016)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
30th fiscal period (July 1, 2016 – December 31, 2016)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.

6769

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

Carrying Value on the Balance Sheets
Balance at Beginning of Period

29th Fiscal Period(January 1, 2016 – June 30, 2016)

30th Fiscal Period(July 1, 2016 – December 31, 2016)

392,346,040

391,239,266

Amount of Increase (Decrease) during the Period(1,106,773)

10,055,587

Balance at End of Current Period

391,239,266

401,294,854

419,881,000

437,981,000

Estimated Fair Value at End of Period(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.

(Note 2) Of the amount of increase (decrease), the amount of decrease for the 29th fiscal period is primarily attributable to depreciation (1,885,187 thousand yen). Of theamount of increase (decrease), the amount of increase for the 30th fiscal period is primarily attributable to the purchase of GINZA GATES (10,131,529 thousandyen) and FUNDES Suidobashi (3,263,997 thousand yen), and the amount of decrease is primarily attributable to the sale of JPR Daikanyama (2,178,967 thousandyen), the sale of a splay portion of JPR Musashikosugi Bldg. (5,284 thousand yen) and depreciation (1,884,057 thousand yen).
(Note 3) The estimated fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 29th and 30th fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)
29th Fiscal Period(January 1, 2016 – June 30, 2016)

30th Fiscal Period(July 1, 2016 – December 31, 2016)

247,862 yen

248,154 yen

6, 754 yen

7,047 yen

Total net assets per unit
Net income per unit

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

Net income (thousands of yen)

29th Fiscal Period(January 1, 2016 – June 30, 2016)
5,896,720

Amounts not attributable to ordinary unitholders (thousands of yen)
Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period(Subsequent Events)

30th Fiscal Period(July 1, 2016 – December 31, 2016)
6,152,795－－

5,896,720

6,152,795

873,000 units

873,000 units

Issuance of new investment units
JPR resolved at its Board of Directors meetings held on January 6, 2017 and January 17, 2017 to issue new investment units, as outlined
below. With payments completed on January 24, 2017 and February 14, 2017, respectively, JPR issued the units under the following
conditions. As a result of the issuance, unitholders’ capital stands at 231,653,198,600 yen with the number of investment units
outstanding totaling 923,000 units as of the issuance date of these financial statements.

<Issuance of new investment units through public offering (primary offering)>
Number of new investment units issued:
47,600 units
Issue price (offer price):
439,040 yen per unit
Total issue price (total offer price):
20,898,304,000 yen
Paid-in amount (purchase price):
425,152 yen per unit
Total paid-in amount (total purchase price): 20,237,235,200 yen
Payment date:
January 24, 2017
<Issuance of new investment units through third-party allotment>
Number of new investment units issued:
2,400 units
Paid-in amount (purchase price):
425,152 yen per unit
Total paid-in amount (total purchase price): 1,020,364,800 yen
Allottee:Mizuho Securities Co., Ltd.
Payment date:February 14, 20177068

Japan Prime Realty Investment Corporation(7) Detailed Schedules
1) Schedule of Securities
Not applicable2) Status of Contract Amounts, etc. and Estimated Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable3) Schedule of Assets Related to Real Estate

Asset Type

Current Assets

Accumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
July 1, 2016
the Period
the Period
during the2016
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Net Balance as ofDecember 31,
2016(thousands of
yen)

-

-

-

-

-

-

-

57,149,742

441,880

244,732

57,346,890

14,201,649

794,948

43,145,241

51,715742,172

384
6,231

2,179
－

49,920748,404

18,152
419,479

1,331
19,58031,767
328,925

62,401

15,076

2,343

75,13438,8793,279

36,254

108,898,331－－
16,9722,008,282
16,972

106,890,048
－

－
－

－
－

106,890,048－

166,904,363

480,5452,274,510

165,110,398

14,678,160

819,140

150,432,238

87,786,352

1,110,874－

88,897,226

29,702,517

1,027,155

59,194,709

119,876641－

120,517

77,2452,750

43,272

1,655,815

21,237－

1,677,053

1,301,826

28,546375,227

178,038

8,057－

186,096

125,281

6,399

60,814

173,873,374

2,620,325－

176,493,700－－

176,493,700

－

8,651

162

8,489

－

－

8,489

263,613,458
430,517,821

3,769,787
4,250,333

162
2,274,672

267,383,083
432,493,482

31,206,870
45,885,031

1,064,852
1,883,992

236,176,213
386,608,451

4,794,109

9,895,373－

14,689,483－－

14,689,483

2,602
4,796,712－
9,895,373

－
－

2,602
14,692,086

1,008
1,008

65
65

1,593
14,691,077

Remarks

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

Propertyacquisition andsale

Property sale

Propertyacquisition

Propertyacquisition

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

69
71

Financial Statements

4) Schedule of Other Specified Assets
Not applicable5) Schedule of Investment Corporation Bonds
Decreaseduring the
Period(thousands ofyen)

Balance as ofDecember 31,
2016(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJuly 1, 2016
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000-

4,500,000

2.900

Dec. 14, 2026

Thirteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

7,000,000

7,000,000

-

0.950

Oct. 25, 2016

Fourteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

2,000,000-

2,000,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

5,000,000-

5,000,000

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

2,000,000-

2,000,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

5,000,000-

5,000,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000-

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000-

5,000,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

2,000,000-

2,000,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000-

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000-

3,000,000

0.831

Dec. 4, 2024

41,500,000

7,000,000

34,500,000

Total

Use

Remarks(Note 2)

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

Investment corporation
bonds

70

72

5,000,000

7,000,000

4,000,000-

Due after Four Years
through Five Years(thousands of yen)-Japan Prime Realty Investment Corporation

6) Schedule of Loans Payable

Increase
Decrease
Balance as
Balance as ofduringduringof July 1,
December 31,
Current
Current
2016
2016
PeriodPeriod(thousands(thousands of(thousands (thousandsof yen)yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

0.230%

July. 5, 2017 (Note 4)

Increase
Decrease
Balance as
Balance as ofduringduringof July 1,
December 31,
Current
Current
2016
2016
PeriodPeriod(thousands(thousands of(thousands (thousandsof yen)yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Mizuho Bank Ltd.

7,000,000--

7,000,000

1.093%

Mar. 30, 2017

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.027%

Dec. 5, 2019Nov. 27, 2020

LenderUse

Remarks

Short-term loans payable
Mizuho Bank Ltd.
Total

Lender-7,000,000-

7,000,000-

7,000,000-

7,000,000

Unsecured/
Unguaranteed/
Non-Subordinated

Use

Remarks(Note 4)

Unguaranteed/Long-Term Loans Payable (Note 1)

Mizuho Bank Ltd.

3,000,000--

3,000,000

0.970%

Mizuho Bank Ltd.

5,000,000--

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank Ltd.

5,000,000--

5,000,000

0.804%

Feb. 4, 2026

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.178%

Aug. 8, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.948%

Aug. 8, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000--

3,000,000

0.919%

Sept. 5, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000--

3,000,000

0.970%

Nov. 27, 2020

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,000,000--

4,000,000

0.889%

Jun. 25, 2021

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000,000--

5,000,000

0.510%

Mar. 25, 2024

Sumitomo Mitsui Banking Corporation

6,400,000--

6,400,000

1.093%

Mar. 30, 2017

Sumitomo Mitsui Banking Corporation

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

3,000,000--

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation-

100,000

2,500,000
2,500,000

1.033%
3.190%

Jun. 27, 2022

Development Bank of Japan, Inc.

2,500,000
2,600,000

Development Bank of Japan, Inc.

820,000--

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000--

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000--

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

-

3,000,000-

3,000,000

0.843%

Jun. 14,2027

5,000,000--

5,000,000

1.397%

Apr. 5, 2019
Sept. 24, 2020

Shinsei Bank, Ltd.

(Note 5)

Shinsei Bank, Ltd.

2,000,000--

2,000,000

1.076%

Shinsei Bank, Ltd.

2,000,000--

2,000,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.

-

1,000,000-

1,000,000

0.843%

Jun. 14,2027

Mitsubishi UFJ Trust and Banking
Corporation

5,000,000--

5,000,000

1.184%

Aug. 29, 2017

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

0.873%

Aug. 31, 2023

Mitsubishi UFJ Trust and Banking
Corporation-

2,000,000-

2,000,000

0.633%

Dec. 13,2024

900,000--

900,000

0.994%

Jul. 3, 2017

Aozora Bank Ltd.
Aozora Bank Ltd.

2,000,000--

2,000,000

1.178%

Aug. 8, 2019

Aozora Bank Ltd.

2,000,000--

2,000,000

0.985%

Aug. 25, 2017

Aozora Bank Ltd.

2,000,000--

2,000,000

1.146%

Aug. 30, 2018

Aozora Bank Ltd.

1,000,000--

1,000,000

1.069%

Sept. 24, 202072

Unsecured/
Non-Subordinated73Financial Statements

Long-Term Loans Payable (Note 1)
Mizuho Trust & Banking Co., Ltd.

4,000,000-

Mizuho Trust & Banking Co., Ltd.

3,000,000-

Shinkin Central Bank

3,000,000

Shinkin Central Bank

Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks-

4,000,000

1.093%

Mar. 30, 2017

1.076%

Feb. 4, 2020--

3,000,000
3,000,000

0.689%

Dec. 5, 2018-

2,000,000-

2,000,000

0.388%

Dec. 14,2021

The Bank of Fukuoka

2,000,000-

2,000,000-

1.170%

Jul. 7, 2016

The Bank of Fukuoka

1,000,000--

1,000,000

0.911%

Sept. 24, 2019

The Bank of Fukuoka

2,000,000--

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka-

2,000,000-

2,000,000

0.480%

Jul. 7,2026

Meiji Yasuda Life Insurance Company

3,406,000-

66,0003,340,000

1.800%(Note 6)

Meiji Yasuda Life Insurance Company

1,000,000--

1,000,000

1.042%

Feb. 5, 2025

The Nishi-Nippon City Bank, Ltd.

3,000,000--

3,000,000

0.646%

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

-

1,000,000-

1,000,000

0.388%

Dec. 14,2021

ORIX Bank Corporation

1,000,000--

1,000,000

0.786%

Feb. 5, 2018

ORIX Bank Corporation

2,000,000--

2,000,000

0.762%

May 27, 2019The Shinkumi Federation Bank

3,000,000--

3,000,000

0.786%

Feb. 5, 2018

Taiyo Life Insurance Company

1,000,000--

1,000,000

0.949%

Jun. 4, 2018

Taiyo Life Insurance Company

1,000,000--

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000--

1,000,000

0.969%

Sept. 24, 2024 (Note 4) Unguaranteed/

Chugoku Bank

1,000,000--

1,000,000

0.758%

Sept. 25, 2018

Chugoku Bank

2,000,000--

2,000,000

0.816%

Oct. 6, 2023

The Norinchukin Bank

1,000,000--

1,000,000

0.440%

Dec. 5, 2017

The Norinchukin Bank-

2,000,000-

2,000,000

0.388%

Dec. 14, 2021

Sumitomo Life Insurance Company
National Mutual Insurance Federation ofAgricultural Cooperatives
Sompo Japan Nipponkoa Insurance Inc.

-

2,000,000-

2,000,000

0.453%

Oct. 11, 2024-

2,000,000-

2,000,000

0.388%

Dec. 14, 2021

2,000,000-

2,000,000-

0.981%

Oct. 11, 2016

Sompo Japan Nipponkoa Insurance Inc.

2,000,000--

2,000,000

0.759%

Dec. 25, 2023

The Hachijuni Bank

1,000,000-

1,000,000-

0.424%

Sept. 26, 2016

The Hachijuni Bank

1,000,000--

1,000,000

0.489%

Oct. 9, 2020

The Hachijuni Bank-

1,000,000-

1,000,000

0.209%

Sep. 24,2021

Resona Bank, Ltd.

2,000,000--

2,000,000

1.093%

Mar. 30, 2017

The Iyo Bank, Ltd.

1,000,000--

1,000,000

0.816%

Oct. 6, 2023

Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Sumitomo Mitsui Trust Bank Limited
Total

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

0.691%

Mar. 25, 2026

(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)1,000,000--

1,000,000

134,626,000

18,000,000

5,166,000

147,460,000

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

74

Increase
Decrease
Balance as of
Balance as ofduringduringDecember 31,
July 1, 2016
Current
Current
2016(thousands ofPeriodPeriod(thousands ofyen)(thousands (thousands
yen)of yen)of yen)32,632,000

16,408,000

17,100,000

17,000,000

Unsecured/
Non-SubordinatedDue after Four Years
through Five Years(thousands of yen)

14,820,000

The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.
The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million
yen will be made on maturity date June 27, 2019.
The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter every 6 months. In addition, repayment of 3,208 million yen will
be made on maturity date June 21, 2018.

73

Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report (差し替えが必要)

74

75

Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
29th Fiscal Period(January 1, 2016 – June 30, 2016)

30th Fiscal Period(July 1, 2016 – December 31, 2016)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
29th fiscal period (January 1, 2016 – June 30, 2016)
Attribute

Asset
CustodianName ofCompany,etc.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

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

Bankingbusiness andtrust businessTransactions

Transaction
Amount(thousands ofyen)

Account

－

－

－

－

Interest
expenses

37,895－Current
portion of
long-termloans payable
Long-termloans payable
Accruedexpenses

Balance at End
of Period(thousands ofyen)

4,000,000
3,000,000
624(Note) Transaction terms are determined based on prevailing market conditions.

30th fiscal period (July 1, 2016 – December 31, 2016)
Attribute

Interested
party

Asset
CustodianName ofCompany,
etc.

Tokyo
TatemonoCo., Ltd.

MizuhoTrust &
Banking Co.,Ltd.

Business
Description or
Occupation

Real estatebusiness

Bankingbusiness andtrust business

Percentage of
Number ofInvestment Units
Held Among Total
Number ofInvestment Units

3.35%

Transactions

Purchase of realestatePurchase of
beneficiaryinterest in realestateTransaction
Amount(thousands ofyen)

10,100,000－

Balance at End
of Period(thousands of
yen)

－

－
3,250,000

－

－

－

－

－

Interest expenses

Account

38,312－Current
portion of
long-term
loans
payableLong-term
loans
payableAccruedexpenses

4,000,000

3,000,000
832(Note) Transaction terms are determined based on prevailing market conditions.

76

75

Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of December 31, 2016)
Market capitalization: ¥402.0 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 30th Fiscal Period: ¥460,500 (December 31, 2016) Low: ¥130,300 (October 28, 2008)
Trading Volume(units)
32,000

Trading Volume (units)

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

28,000520,000

Offer price at additional offering: ¥449,820

24,000460,000

Offer price at additional offering: ¥394,875

20,000400,000

16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

Offer price at additional offering: ¥237,160
8,000

220,000

Offer price at IPO: ¥200,000

Offer price at additional offering: ¥194,610
160,000
Offer price at additional offering: ¥168,101

4,000

0
Jun. 14
2002

100,000
Jun. 16
2003

Jun. 142004

Jun. 142005

Jun. 142006

Jun. 142007

Jun. 16
2008

Jun. 152009

Jun. 142010

Jun. 142011

Jun. 142012

Jun. 142013

Jun. 162014

Jun. 152015

Jun. 14 Feb. 7
2016 2017(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of December 31, 2016)
Other domestic
corporations

Foreign investors

402

204

(3.59%)(1.82%)

Financial institutions(including securities firms)

172(1.53%)

Number ofunitholders
by investor type34,181 units(3.91%)(23.05%)

Other domestic
corporations

11,177

Individuals

Foreign investors

201,308 units

81,851 units(9.37%)

Number ofinvestment units
by investor type873,000
units

Individuals

Financial institutions(including securities firms)

555,660 units

10,399(63.64%)(93.03%)(Note) The composition ratio is rounded down to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

77Introduction to the JPR Website

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

8955(Securities Code)JPR endeavors to conduct IR activities and information
provision by offering a variety of contents on its website
in order to secure timely disclosure of information toinvestors and help them gain a better understanding of
JPR.
Point 1 Digest of Financial Results

Point 1A digest version movie of theanalyst meeting is provided topresent JPR’s latest financial
results, asset management
status, future growth strategies
and other matters.

Point 2 Briefing Sessions and Events

Point 2

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

A variety of the latest information is delivered, including
notices of briefing sessions and events for retail investors, JPR’slatest asset management status and other issues.

Point 3 Property Overview
Detailed explanations of
JPR’s properties are provided,
including their features,
specifications and revenues
and expenses. The accessroutes to respective properties
from the nearest stations canbe searched by smartphone.
We advise you to use thisfunction when you wish tovisit the properties.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

More than once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant of JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

Contact by Phone

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

Listing

Tokyo Stock Exchange (Securities Code: 8955)

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