34th
Report on Operating and Management Results
Thirty-Fourth Fiscal Period Semi-Annual Report
July 1, 2018 – December 31, 2018

Japan Prime Realty Investment Corporation

JPR Shinsaibashi Bldg.

Determined Cash Distribution
The 34th fiscal period ended December 2018

¥7,326
Forecast Cash Distribution (reference)
The 35th fiscal period ending June 2019

¥7,350The 36th fiscal period ending December 2019

¥7,380Contents
JPR at a Glance

1

Message to Our Unitholders

2

Account Highlights

3

Internal Growth Strategy

4

External Growth Strategy

5

Financial Strategy

6

Initiatives on Sustainability

7

Portfolio Status

10

Overview of Portfolio Properties

12

Structure and History of JPR

28

Overview of Asset Manager

29

Asset Management Report

30

Financial Statements

52(1) Balance Sheets

52(2) Statements of Income andRetained Earnings

54(3) Statements of Changes inUnitholders’ Equity

JPR Shinsaibashi Bldg.

55(4) Statements of Cash Distributions

56(5) Statements of Cash Flows

57(6) Notes to Financial Statements

58(7) Detailed Schedules

67(8) Independent Auditor’s Report

71(9) Other Notes (Information only)72

Investor Information

73

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

62 properties 435.0 billion yen
Investment Ratio by Area
Tokyo:

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

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

76.8%

Retail:23.2%

Ratio of interest-bearing debts to total assets (LTV)

40.5%
Ratio of Long-Term, Fixed Interest Rate Debts

100.0%
Issuer Rating

AA- (R&I)
Sponsors
JPR makes the best of the comprehensive capabilities in
the real estate, construction and finance areas of the fivesponsors 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.

343.3 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

Yakuin Business Garden

1Message to Our Unitholders

Satoshi Okubo

Yoshihiro Jozaki

Executive Officer
Japan Prime Realty Investment Corporation

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

Dear Unitholders,
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 34th fiscal period (July 1, 2018 – December 31, 2018) at the end of December
2018, 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 our stable growth over the medium tolong term while taking into account the governance of JPR as an investment corporation.
We ask you, our unitholders, to extend us continued consideration and support of our operations.

Financial Results of the 34th Fiscal Period Ended December 2018❚❚ Cash distribution per unit: ¥7,326(up ¥81 period-on-period)❚❚ Achieved a period-on-period increase in cash
distributions for the tenth straightfiscal period❚❚ Forecast distribution per unit for the next
fiscal period: ¥7,350(35th fiscal period ending June 2019)❚❚ Forecast distribution per unit for the fiscal
period after the next period: ¥7,380(36th fiscal period ending December 2019)2

For the 34th fiscal period, JPR kept up a good performance
thanks to strong office demand leading to continued upwardrevision of rents, etc., with the occupancy rate of its officeproperties reaching a record high level.
Distribution per unit came to 7,326 yen, a new record highsince listing, marking the tenth straight fiscal period with aperiod-on-period increase.
For the 35th fiscal period ending June 2019 and thereafter,
JPR expects distribution per unit to continue showing aperiod-on-period increase. Going forward, JPR will
endeavor to achieve a steady growth in cash distributions
and the value of its assets over a long term.

Japan Prime Realty Investment Corporation

Account Highlights
Cash Distribution Status❚❚ Distribution per unit marked the tenth(yen/unit)

7,500

straight fiscal period with aperiod-on-period increase❚❚ Continued to renew record highs
since listing(Forecast)

7,213 7,223 7,245(Forecast)

7,326 7,350 7,380

7,048

7,000

6,756
6,588
6,500

6,351

6,419

6,150
6,000

6,031 6,006

0
23rd
Period24th
Period25th
Period26th
Period27th
Period28th
Period29th
Period30th
Period31st
Period32nd
Period33rd
Period34th
Period35th
Period36th
Period(Jun. 2013)(Dec. 2013)(Jun. 2014)(Dec. 2014)(Jun. 2015)(Dec. 2015)(Jun. 2016)(Dec. 2016)(Jun. 2017)(Dec. 2017)(Jun. 2018)(Dec. 2018)(Jun. 2019)(Dec. 2019)

Operating Results
33rd Period
34th Period
Year-on-Yearended Jun. 2018 ended Dec. 2018
ChangeOperating revenue(million yen)

Operating expenses(million yen)

Operating income(million yen)

Non-operating income(million yen)

Non-operating expenses(million yen)

Ordinary income(million yen)

Net income(million yen)

Distribution per unit
(yen)

15,204

15,652

+447

7,869

8,066

+197

7,335

7,586

+250

227

27

-200

877

851

-25

6,685

6,761

+75

6,686

6,760

+74

7,245

7,326

+81

TOPIC 1
Revenue increased period-on-period due
to a steady progress made in inviting new
tenants and revising rents upward upon
contract renewals.

TOPIC 2
Expenses for repair and maintenance andutilities expenses (a seasonal factor)
increased, among other items.

TOPIC 3Non-operating expenses decreased due tolack of temporary settlement ofmanagement association accounts that
had accrued at certain properties in theprevious fiscal period.

3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. Reinforce 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. Continuously enhancetenant satisfaction

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

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
remained at a high level, with thefigure reaching the 99% level for the34th fiscal period.

(%)

Entire portfolio

100
99.6
98

97.2

99.8

100.0

97.5

97.4

Office properties
99.9
97.8

100.0
98.3

97.5

Retail properties
99.4

100.0
98.5

99.7
98.4

97.8

97.8

98.2

99.9

99.2
98.8

97.6

96.8

96
95.9

96.2

96.1

94

92

0

26th Period 27th Period 28th Period 29th Period 30th Period 31st Period 32nd Period 33rd Period 34th Period(Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018)

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

(million yen)

30

Upward revision

Downward revision
+24.5

20
+15.3

+14.6
+10.4

10
+5.9

+6.0

-1.3

-0.9

0
-4.7
-10

4

+10.9

+10.0
+7.4

-0.2

-0.4
-2.8
-5.8

-3.9

-3.0

26th Period 27th Period 28th Period 29th Period 30th Period 31st Period 32nd Period 33rd Period 34th Period(Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018)

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. Looking ahead,
JPR will continue to make investments focused on office properties in Tokyo, with an aim to further improve the quality of its
portfolio and enhance its growth potential over a long term.

2. Vigorously selective
investments in 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)

FUNDES Suidobashi

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

FUNDES Suidobashi was acquired from
Tokyo Tatemono.

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 49.9% for the former and 50.1% 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

50.1%

Properties acquired
other than fromsponsors, etc.

27.5% Properties
acquired fromsponsors, etc.

22.6% 49.9%

Properties acquired
based on information
provided by sponsors

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

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 34th fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

Ratio of interest-bearing debts to total assets (LTV)

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

40.5%

AA- (Stable)

Ratio of long-term, fixed interest rate debts

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

100.0%

Long-term:A (Stable)

Short-term:

A-1

Financing Status for the 34th Fiscal Period
JPR has successfully reduced debt cost while placing more emphasis on lengthening the maturity of procured debts
and diversifying the repayment dates.
Comparison of Debts Matured andNew Debts Procured in the 34th
PeriodAverage maturity

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

Average maturity (right axis)

1.6

5.6 years ➤ 6.7 years

1.21(up 1.1 years)

1.2

Average debt cost

0.8

0.92% ➤ 0.54%

0.4

1.19

1.16

1.10

(years)Average debt cost (left axis)

1.03

8.0

6.0

0.96

0.94

0.90
4.0

4.0
years

4.0
years

4.2
years

4.2
years

4.3
years

4.6
years

4.6
years

4.5
years

2.0

(down 0.38%)

0.0

27th Period 28th Period 29th Period 30th Period 31st Period 32nd Period 33rd Period 34th Period(Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018)

0.0

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

Long-term loans payable

20

Investment corporation bonds

15

4.0

10

13.05

0

2.0

5.0

3.0

9.1

8.0

10.0

11.0

9.8

10.0

10.5

8.0

8.0

10.0

7.0

8.0

10.0

9.9

10.0

35th
Period36th
Period37th
Period38th
Period39th
Period40th
Period41st
Period42nd
Period43rd
Period44th
Period45th
Period46th
Period47th
Period48th
Period49th
Period

8.5

2.0
50th
Period

3.0

7.0

51st
Period

3.0

4.2

52nd
Period53rd
Period(Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2020) (Jun. 2021) (Dec. 2021) (Jun. 2022) (Dec. 2022) (Jun. 2023) (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) (Dec. 2026) (Jun. 2027) (Dec. 2027) (Jun. 2028)

6

Japan Prime Realty Investment Corporation

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

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

■■ Energy-saving and Reduction of CO2 Emissions
Social responsibility towards climate change is becoming increasingly larger. Therefore, JPR is working on suchenvironmental and energy-saving measures as upgrading to more energy-efficient equipment (like LED lamps), while
promoting reduction of CO2 emissions by conducting measurement of greenhouse gas emissions figures at its
properties.
Fiscal 2017 achievements as
year-on-year comparison

8.85 million yen
CO reduction 251 t-CO22➡

➡ ➡ ➡ ➡ ➡

234th fiscal period results(period-on-period comparison)
Decrease in power charge

➡

2.9 %
Gas use		12.6 %Heat use		
1.7 %Water use		
0.1 %CO emission		 6.6 %Power use		

Assumed reductions by upgrading to LED lamps
JPR endeavors to reduce power consumption at its properties as it gradually replaces
the lighting equipment and guide lights, etc. of their exclusive and common-use areas
with LED lamps.

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

■■ Betterment of Tenant Services
Realizing better customer satisfaction (CS) of tenants is an important theme for stabilizing cash distributions, as itleads to stable occupancy over a long term and reduced risks of contract cancellation by tenants. JPR has establishedthe “JPR Best Performance Award” based on the CS survey results and recommendations from property managers tocommend building managers exhibiting outstanding levels of management services and to recognize them as modelbuilding managers for others to follow.

JPR Best Performance Award 2018
Awardee

BYGS Shinjuku Bldg. Management Office, Tokyo Metropolitan Area Branch
No. 3, Tokyo Real Estate Management Co., Ltd.

Reasonfor award•Appropriately manages a building where it is highly challenging to manage as it
is a large building with many tenants and many visitors come to its retail floor•Highly evaluated each year in the CS survey•Excellent ability to cope with large-scale renovations, etc.

BYGS Shinjuku Bldg.

7

Initiatives on Sustainability■■ Recognition by External Bodies
Reacquisition of DBJ Green Building Certification
Out of the properties that had been granted the DBJ Green
Building Certification, JPR reacquired certification in
December 2018 for ten properties, for which certification was
to expire. Five properties received higher assessment ranks as
a result of continuous progress made in environmental andenergy-saving measures and enhancement of energy use
efficiency. Going forward, JPR will keep its endeavors to
reinforce its capabilities to address environmental issues.

Olinas Tower

Assessment rank
Property Name

Beforereacquisition

Afterreacquisition

Olinas Tower
JPR Sendagaya Bldg.
Oval Court Ohsaki Mark West
Kanematsu Bldg.
BYGS Shinjuku Bldg.

JPR Sendagaya Bldg.

Oval Court Ohsaki Mark WestGRESB Assessment
With regard to JPR’s initiatives on sustainability, the 2018 GRESB survey
acknowledged its superiority both in the “Management & Policy” and“Implementation & Measurement” dimensions, and designated JPR as“Green Star” for the fifth consecutive year.
JPR was also granted a higher rank of “4 Stars” in the GRESB Rating, whichmakes relative assessments based on total scores, for the third consecutive
year. In addition, JPR received an “A” mark, the highest ranking, in the
GRESB Public Disclosure (Evaluation of ESG Disclosure Level).

Acquisition of Assessment in CASBEE for Building Certification
CASBEE (Comprehensive Assessment System for Built Environment
Efficiency) is a system for comprehensively assessing and ranking theenvironmental performance of buildings with regard to aspects such as theenhancement of environmental quality and performance including indoor
comfort and consideration for the landscape, on top of the aspect ofenvironmental consideration such as energy saving and the use of materials
and equipment with a lower environmental burden.
JPR received a “Rank A” assessment in the CASBEE for Building
Certification for its Yakuin Business Garden in 2018. The
property was recognized for its consideration for the building
safety with high seismic resistance and control performance,
as well as its consideration for an environment providing
natural enjoyment to tenants and local residents throughgreening with a variety of plants on its premises.

8

Yakuin Business Garden

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 AssetManager.

■■ Board Composition that Secures Governance❚❚ At JPR, the Executive Officer has no concurrent
assignment as director of TRIM in consideration of
securing the independence of the investment corporation.
❚❚ The JPR officers have sufficient experience in practicaloperations and have a thorough knowledge of the
REIT industry. The Supervising Officers are an
attorney and a public accountant, securing theeffectiveness of their monitoring function on thebusiness operations of the investment corporation.

Member of the Board of JPR

Executive Officer:

Satoshi Okubo

Supervising Officer: Masato Denawa (attorney)
Supervising Officer: Nobuhisa Kusanagi(certified public accountant)■■ Merits of Having Diversified Sponsors and Monitoring of Operations❚❚ The five sponsors that are active in the respective areas
provide properties, human resources, information andother support by taking advantage of their respective
strengths.
❚❚ Each sponsor exercises its monitoring function, from avariety of perspectives, on the business operations of
the investment corporation.
❚❚ The Compliance Office general manager that is the headof the department in charge of internal control at TRIM
is not seconded from any of the sponsor companies.

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 a unanimous votefor approvals in principle.
❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.

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

Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Members of the Compliance Committee of TRIM

Final decision on Acquisition

President and CEO

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

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager

Special member (outside attorney)

Conclude agreement

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

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

9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

435.0

400
350
300
250
200
150
100
50
0

Start of 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th
management(at period end)

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

Changes in Investment Ratios by Area and by Asset ClassAs a result of focused investments in office properties in Tokyo, the investment ratio of office properties in Tokyo stoodat 67.4% as of the end of the 34th fiscal period, up 23.9% compared with the 43.5% as of the end of the 1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 34th Fiscal Period (December 31, 2018)

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%

+23.9%

Retail in
Other Cities
6.0%
Office in
Other Cities
9.4%
Retailin Tokyo
17.2%

Officein Tokyo

67.4%(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.

10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)
Height of the circle center (left axis):
NOI yield (based on acquisition price; annualized)

Office properties
in Central Tokyo

Office properties
in Greater Tokyo

83.9 billion yen
5.5%

5

209.0 billion yen
4.1%

Office properties
in Other Cities

41.0 billion yen
5.9%

Retail properties

100.9 billion yen
4.8%

Portfolio average

4.7%

0(Note) NOI yield (based on acquisition price; annualized) refers to the yield of NOI* in each category, annualized in accordance with the number of operating days of properties in therelevant category (the average number of operating days weighted by acquisition price). Figures are rounded to the first decimal place.
*NOI = Real estate rental revenues - real estate rental expenses + depreciation

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

1% or more by other tenants(except for sponsors, etc. and retail tenants)
3 tenants / 3.8%

Number of tenants
Less than 1%

735 tenants / 66.3%

747

companies

1% or more by retail tenants

8 tenants / 28.2%(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees, which shows the diversification status in effect, when the tenant subleases the relevant property to sublessees (end tenants), etc. andthe leasing terms and conditions vary in accordance with the situation of subleasing. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If theleased rooms are in multiple buildings, the tenant is counted in plural.

11

Overview of Portfolio Properties
List of Properties (62 Properties for the Entire Portfolio)
Central Tokyo (31 Properties)
Property
Number

Property Name

Location

Acquisition Date

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

PML (%)

A-1

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

3.7

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

2,802.22

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

11,2002.6 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

A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,234.41

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

10,0002.3
0.0
0.9 19,266.38

1.3

Total

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

Sep. 26, 2008180

Mar. 25, 2015

4,000

Oct. 21, 2015

786

0.2

Total

14,966

3.4

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

15,227.80

3.1

15,121

3.5

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

4.8

8,865.71

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

0.6

2,488.36

A-18

7.7

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

1.9

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

5,299.88

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.5

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

36,0008.3 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.29

3.1

Dec. 6, 2013

3,420

0.8
5,401.46

5.6

5,971.73

2.6

Office

A-25

A-26

Shibadaimon Center Bldg.

Minato-ku, Tokyo

Tokyo Square Garden

Chuo-ku, Tokyo

Jul. 30, 2014

800

0.2

Total

4,220

1.0

Feb. 1, 2017

9,200

2.1

Apr. 4, 2017

9,200

2.1

Total

18,4004.2

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

0.6

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

RetailTotal
A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo

Aug. 27, 2008

3,400

0.8

1,101.92

3.0

A-6

JPR Ginza Namiki-dori Bldg. (Note 4)

Chuo-ku, Tokyo

Dec. 15, 2016

10,1002.3

1,665.79

6.8

A-7

FUNDES Suidobashi

Chiyoda-ku, Tokyo

Dec. 15, 2016

3,250

0.7

1,367.56

6.5

56.3 161,921.69—

Subtotal

12

AcquisitionPrice(in millions)¥244,862

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

0.5

5,539.74

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,079.74

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

0.3

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

1.9 15,503.27

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.7

6,454.84

3.9

Sep. 30, 2005

888

0.2

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

2,300

0.5

4,602.84

4.1

3,188

0.7

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

1.3

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

31,3007.2 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.6

6,494.01

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

10,2002.3 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

3.5 12,067.44

5.9¥122,885

28.2 189,718.06—

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

PML (%)

Subtotal

Other Cities (14 Properties)
Property
NumberOfficeProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,327.50

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,149.28

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,572.76

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,945.83

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.7

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,876.71

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.6

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,918.28

5.0

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.5 16,654.33

1.6

C-21

JPR Shinsaibashi Bldg. (Note 5)

Osaka, Osaka

May 30, 2005

5,430

1.2

4,021.05

11.5

May 15, 2003

8,000

1.8

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

1.1 18,586.97

4.3

Total

13,000

3.0

RetailC-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.7 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.4

2,478.42

8.4

Subtotal¥67,30315.5 126,448.50

—

Total

¥435,050

100.0 478,088.25

2.0(Note 1) The table above shows properties owned by JPR as of December 31, 2018.
(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.
(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Risk Management Inc., rounded down to the first decimal place.
(Note 4) The property was renamed from GINZA GATES to JPR Ginza Namiki-dori Bldg. as of August 1, 2018.
(Note 5) The property was renamed from Benetton Shinsaibashi Bldg. to JPR Shinsaibashi Bldg. as of August 1, 2018.

13

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-12
A-4

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

A-17

A-23

Tokyo

Harajuku

A-5

A-3
Shinbashi

A-18

A-1

A-6

A-25

Shibuya

Sobu Line

A-20

ChiyodaWard

A-21
Shibuya Ward

A-5

Ichigaya

A-3
A-1 A-2
A-26
A-19
A-22

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

● A-16● A-17● A-18● A-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 Bldg.
● A-26 Tokyo Square Garden

A Central Tokyo
Chiyoda Ward
Chuo Ward

14

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

■ A-1
■ A-3
■ A-4
■ A-5
■ A-6
■ A-7

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

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

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

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main 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-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden● C-21 JPR Shinsaibashi Bldg.

OSAKA

Retail
■ C-1
■ C-4
■ C-5

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

C-7
C-14
C-20

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

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
NAHA

C-9

WAKAYAMA

C-13

15

Property for Acquisition in the 35th Fiscal Period
Central Tokyo

OfficeRetailCanal Bldg. (additional ownership)
A-16 Shinagawa
Minato Ward, Tokyo❚❚ JPR will acquire additional ownership of an office building,in which JPR already has ownership interest, located in Central Tokyo.
❚❚ With the additional ownership, JPR will have a majority ownershipinterest (50.2%) in the property.
8F

8th floor: Portion for additional acquisition by JPR: 4.6%
Total ownership interest of
JPR after the acquisition:
50.2%

7F
6F

5th to 7th floors: Portion already owned by JPR: 45.6%

5F
4F
3F
2F

1st to 4th floors: Portion owned by other right holders: 49.8%

1F
Location
Structure/Floors
Completed12-33 Konan 2-chome, Minato-ku, TokyoS B1/8F
July 2008

Site Area

828.82 m (entire site area)
Planned Acquisition Date
2

March 8, 2019

Acquisition Price¥171 million

Total Floor Space

5,216.21 m (entire building)Planned Acquisition Price2¥171 million

Properties Owned as of the End of the 34th Fiscal Period
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
Total Floor Space¥16,276 million
1,751.13 m2
14,995.09 m

2

16

Structure/Floors
Completed
Property Manager

S/RC/SRC B2/13F
February 1993

Tokyo Tatemono Co., Ltd.

¥2,100 million

Structure/Floors
Completed
Property Manager

4,117.70 m2
SRC/RC B1/8F
December 1989

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Properties Owned as of the End of the 34th Fiscal Period
Central Tokyo
A-4

OfficeRetailShin-Kojimachi Bldg.

A-6

Chiyoda Ward, Tokyo

Acquisition Price
Site Area

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

4,790.68 m2
SRC B1/9F
September 1999

Property Manager

Tokyo Tatemono Co., Ltd.

A-7

Gotanda First Bldg.

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

Structure/Floors

SRC/RC/S B2/13F

CompletedFebruary 1988

Property Manager

31,020.21 m

2

Tokyo Tatemono Co., Ltd.

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

Shinagawa Ward, Tokyo

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

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

A-9

JPR Ichigaya Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥5,100 million
1,058.04 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,888.82 m2
SRC B1/9F
March 1989

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space

¥3,500 million
4,006.00 m2

Structure/Floors
Completed

S/SRC B2/17F
June 2001

28,575.80 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

17

Properties Owned as of the End of the 34th Fiscal Period
Central Tokyo

OfficeRetailSquare Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

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

78,796.00 m2

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

Structure/Floors

S/RC/SRC B4/30F

Completed

October 1994

Acquisition Price
Site Area

Property Manager

Tokyo Tatemono Co., Ltd.

(entire redevelopment project)

Shinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo
Acquisition Price
Site Area

Total Floor Space¥15,121 million
3,522.46 m2

Structure/Floors
Completed

SRC B2/14F
April 1985

Property Manager

25,733.10 m

Tokyo Tatemono Co., Ltd.

2

Center Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo¥710 million
858.48 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

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

Total Floor Space
Structure/Floors
Completed
Property Manager

4,570.63 m2
S 9F
June 1992

Tokyo Tatemono Co., Ltd.

18

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

Structure/Floors
Completed

176,607.89 m

Property Manager
2

SRC/RC/S B5/54F
October 1979

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailCanal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo

Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥1,870 million
828.82 m2

Total Floor Space
Structure/Floors
Completed

5,216.21 m2
S B1/8F
July 2008

Property Manager

Tokyo Tatemono Co., Ltd.

Bldg.
A-17 Rokubancho
Chiyoda 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.

Tatemono Kyobashi Bldg.
A-19 Tokyo
Chuo Ward, Tokyo
Acquisition Price
Site Area

Acquisition Price
Site Area
Total Floor Space

¥8,400 million
1,205.07 m2

Structure/Floors
Completed

SRC B1/9F
March 1989

Property Manager

6,466.94 m

Tokyo Tatemono Co., Ltd.

2

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo¥5,250 million
547.10 m2

Total Floor Space
Structure/Floors
Completed

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

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
Property Manager

7,190.82 m2
S/RC B1/9F
June 2002

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥15,050 million
2,217.49 m2

Structure/Floors
Completed

S 8F
May 2009

7,683.19 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

19

Properties Owned as of the End of the 34th Fiscal Period
Central Tokyo

OfficeRetailSanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

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

Acquisition Price¥3,400 million

Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F

Completed

October 1982

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed¥2,660 million
5,289.01 m2
24,560.36 m2
S/SRC/RC B2/12F
February 1995

Acquisition Price
Site Area

Center Bldg.
A-25 Shibadaimon
Minato Ward, Tokyo

Total Floor Space

Site Area
Total Floor Space20¥4,220 million
1,915.50 m2
11,419.93 m2

Structure/Floors
Completed
Property Manager

Completed

11,034.78 m–

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

Square Garden
A-26 Tokyo
Chuo Ward, Tokyo

Acquisition Price
Acquisition Price

Structure/Floors

2

Property Manager

Nomura Real Estate Partners Co., Ltd.

¥36,000 million

S/SRC B1/10F
July 1993

Nomura Real Estate Partners Co., Ltd.

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

Structure/Floors
Completed112,645.83 m

Property Manager
2

S/SRC B4/24F
February 2013

Tokyo Tatemono Co., Ltd.
The Dai-Ichi Building Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-1

OfficeRetailJPR Shibuya Tower Records Bldg.
Shibuya Ward, Tokyo

A-3

JPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price¥4,275 million

Site Area

198.10 m2

Total Floor Space

1,066.81 m2

Structure/Floors

S/SRC B1/7F

CompletedFebruary 2006

Property Manager

Jones Lang LaSalle K.K.

A-4

Acquisition Price
Site Area

1,010.47 m2

Total Floor Space

A-5¥12,000 million

8,449.56 m

Structure/Floors
CompletedShinjuku Sanchome East Bldg.
Shinjuku Ward, Tokyo

SRC/S B3/8F
February 1992

Property Manager
2

Tokyo Tatemono Co., Ltd.

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

Acquisition Price
Site Area¥2,740 million
2,578.69 m2

Total Floor Space

Structure/Floors
Completed

January 2007

24,617.65 m

Property Manager

Tokyo Tatemono Co., Ltd.

2

A-7

FUNDES Suidobashi
Chiyoda Ward, Tokyo

Acquisition Price
Site Area

Site Area
Total Floor Space

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

Structure/Floors
Completed
Property Manager

2

S/SRC B4/20F
October 2007

Tokyo Tatemono Co., Ltd.

¥3,250 million
281.59 m2

Total Floor Space
Acquisition Price

S/SRC/RC B3/14F

Structure/Floors
Completed

1,477.91 m2
S 9F
July 2015

Property Manager

Prime Place Co., Ltd.

21

Properties Owned as of the End of the 34th Fiscal Period
Central Tokyo
A-6

Office/ Greater Tokyo

RetailJPR Ginza Namiki-dori Bldg.

B-1

Chuo Ward, Tokyo

Acquisition Price
Site Area¥10,100 million
230.11 m

Structure/Floors

S 11F

Completed

June 20082

Total Floor Space

1,821.67 m

Property Manager

Prime Place Co., Ltd.

2

Office(Note)

Arca East
Sumida Ward, Tokyo

Acquisition Price
Site Area

JPR Chiba Bldg.

Acquisition Price

Structure/Floors

S/SRC B3/19F

Completed

March 1997

Property Manager

34,281.86 m

2

B-5

Chiba City, Chiba¥5,880 million
3,755.01 m2

Total Floor Space(Note) The property manager was switched from Tokyo Tatemono Co., Ltd. as of October 1, 2018.

B-2

RetailTokyo Tatemono Co., Ltd.

Shinyokohama 2nd Center Bldg.
Yokohama City, Kanagawa¥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

Jones Lang LaSalle K.K.

B-3

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price
Site Area¥2,927 million
1,100.59 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

9,146.52 m2
SRC B1/11F
October 1989

Tokyo Tatemono Co., Ltd.

22

Acquisition Price
Site Area
Total Floor Space

¥1,490 million
841.71 m2

Structure/Floors
Completed

7,781.93 m

Property Manager
2

S/SRC B2/12F
August 1991

Nomura Real Estate Partners Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-6

OfficeRetailKawaguchi Center Bldg.

B-7

Kawaguchi City, Saitama

JPR Ueno East Bldg.
Taito Ward, Tokyo

Acquisition Price¥3,250 million

Site Area

1,242.97 m2

Total Floor Space

8,490.44 m2

Structure/Floors

S/SRC B1/8F

Completed

October 1992

Property Manager

Jones Lang LaSalle K.K.

B-8

Tachikawa Business Center Bldg.
Tachikawa City, Tokyo

Acquisition Price
Site Area

2,047.22 m2

Total Floor Space
Acquisition Price
Site Area

4,524.61 m2

Total Floor Space

B-9

28,420.85 m

Completed

Structure/Floors

S/SRC B2/15F

CompletedFebruary 1994

9,377.28 m2(entire redevelopment project)
Total Floor Space

91,280.94 m2(including residential tower)

S/SRC B1/12F
December 1994

Tokyo Tatemono Co., Ltd.

Nomura Real Estate Partners Co., Ltd.

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

Toshima Ward, Tokyo¥5,831 million

14,706.36 m2

Property Manager

Property Manager
2

Rise Arena Bldg.

Acquisition Price
Site Area¥8,100 million

Structure/Floors¥3,188 million

Structure/Floors

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

Completed

Acquisition Price

January 2007
Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

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

Site Area
Total Floor Space

¥6,510 million
12,011.00 m2

Structure/Floors
Completed

S/SRC/RC B3/27F
March 1997

185,974.87 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

23

Properties Owned as of the End of the 34th Fiscal Period
Greater Tokyo

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

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Site Area¥31,300 million

27,335.29 m (entire site area)

Structure/Floors

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

Completed2

Total Floor Space

257,842.41 m2(includes commercial tower and residential tower)

February 2006

Property Manager

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area

1,110.28 m2

Total Floor Space

Acquisition Price
Site Area
Total Floor Space

¥6,090 million
2,268.09 m2
9,203.98 m

2

24

B-1

Structure/Floors
Completed
Property Manager

S 9F
February 2009

Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed

SRC B1/9F
May 1981

Property Manager

8,772.51 m

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

Prime East
B-13 Omiya
Saitama City, Saitama¥7,000 million

Tokyo Tatemono Co., Ltd.

Tanashi ASTA
Nishitokyo City, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥10,200 million
12,326.30 m2

Structure/Floors
Completed

80,675.27 m

Property Manager
2

SRC B2/17F
February 1995

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-3

Office/ Other Cities

RetailCupo-la Main Bldg.

OfficeB-4

Kawaguchi City, Saitama

RetailJPR Musashikosugi Bldg.
Kawasaki City, Kanagawa

Acquisition Price¥7,254 million

Site Area

4,757.09 m2

Total Floor Space
Structure/Floors

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

Completed

March 1983

Property Manager

Tokyo Tatemono Co., Ltd.

B-5

Musashiurawa Shopping Square
Saitama City, Saitama
Acquisition Price¥4,335 million

Site Area

8,317.99 m2

Total Floor Space
Acquisition Price
Site Area¥2,100 million
15,008.28 m2(entire redevelopment project)
Total Floor Space

48,321.96 m2

B-6

Structure/Floors

28,930.36 m2

Structure/Floors

S/RC/SRC B2/10F

Completed

Completed

January 2006

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

Tokyo Tatemono Co., Ltd.

C-1

Kawasaki City, Kanagawa

October 2005

Property Manager

Property Manager

Kawasaki Dice Bldg.

S B1/4F

Niigata Ekinan Center Bldg.
Niigata City, Niigata

Acquisition Price¥2,140 million

Site Area

2,706.99 m2

Total Floor Space
Structure/Floors

19,950.42 m2
S/SRC B1/10F

Completed

March 1996

Property Manager

Jones Lang LaSalle K.K.

C-4

Tokyo Tatemono Honmachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area

1,432.64 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space¥15,080 million
4,475.45 m2
36,902.01 m

Structure/Floors
Completed
Property Manager

2

S/SRC/RC B2/11F
August 2003

Tokyo Tatemono Co., Ltd.

¥4,150 million

Structure/Floors
Completed

14,619.52 m2
SRC B3/9F
February 1970

Property Manager

Tokyo Tatemono Co., Ltd.

25

Properties Owned as of the End of the 34th Fiscal Period
Other Cities
C-7

OfficeRetailJPR Hakata Bldg.

C-9

Fukuoka City, Fukuoka
Acquisition Price
Site Area

Structure/Floors

Naha City, Okinawa¥2,900 million
1,214.63 m

Total Floor SpaceJPR Naha Bldg.

Acquisition Price2

Site Area

959.87 m2

9,828.73 m2

Total Floor Space

S/SRC B1/12F

Structure/Floors

Completed

June 1985
expansion in November 2003

Completed

Property Manager

Acquisition Price
Site Area

Structure/Floors
Completed

SRC/S 12F
October 1991

Tokyo Tatemono Co., Ltd.

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama
Acquisition Price¥3,150 million
1,895.67 m

Total Floor Space

5,780.71 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Japan Sendai Bldg.
C-12 Sompo
Sendai City, Miyagi¥1,560 million

Site Area
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.

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥2,810 million
1,164.39 m2

Total Floor Space
Structure/Floors
Completed

8,690.95 m2
S/SRC 13F
July 2000

Property Manager

Tokyo Tatemono Co., Ltd.

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price
Site Area¥2,140 million
668.11 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,696.01 m2
SRC B2/9F
October 1993

Tokyo Tatemono Co., Ltd.

26

Acquisition Price
Site Area
Total Floor Space

¥10,996 million
4,486.44 m2

Structure/Floors
Completed

22,286.35 m

Property Manager
2

SRC 14F
January 2009

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

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

C-1

JPR Umeda Loft Bldg.
Osaka City, Osaka¥4,137 million
1,610.38 m2

Total Floor Space
Structure/Floors
Completed

10,201.44 m2
SRC B1/9F
March 1991

Property Manager

Tokyo Tatemono Co., Ltd.

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

Total Floor Space
Structure/Floors

5,303.98 m2
S B2/10F

Acquisition Price

CompletedFebruary 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

C-4

Housing Design Center Kobe

Site Area
Total Floor Space

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

Structure/Floors
Completed
Property Manager

2

SRC/S B2/11F
June 1994

Tokyo Tatemono Co., Ltd.

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 Price

Site Area¥13,000 million

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area
Total Floor Space

¥6,000 million
592.45 m2

Structure/Floors
Completed

S/SRC 9F
June 1994

3,219.36 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

27

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

28

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(Shareholding ratio)
Corporate History

April 28, 2000
October 13, 2000

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

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

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

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

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

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

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

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

29

Asset Management Report

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

Operating Revenue
Rent revenue – real estate

Million yen

30th Fiscal
Period(Jul. 1, 2016 Dec. 31, 2016)
15,105

Million yen

15,105

14,907

15,141

15,204Gain on sale of real estate

Million yen

0

210

–

–

–

Million yen

7,944

7,370

7,572

7,869

8,066

Million yen

6,898

6,599

6,810

7,114

7,311

Million yen

300

–

–

–

–

Million yen

7,161

7,747

7,569

7,335

7,586

Million yen

6,153

6,868

6,666

6,685

6,761

Million yen

6,152

6,867

6,665

6,686

6,760

Million yen

432,307446,068

446,487446,297

447,157

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

%

31st Fiscal
Period(Jan. 1, 2017 Jun. 30, 2017)15,11832nd Fiscal
Period(Jul. 1, 2017 Dec. 31, 2017)15,14133rd Fiscal
Period(Jan. 1, 2018 Jun. 30, 2018)15,20434th Fiscal
Period(Jul. 1, 2018 Dec. 31, 2018)
15,652
15,652(+3.2)(+3.2)(+0.1)(-0.0)(+0.2)

Million yen

188,960

181,394

181,228

181,120

181,020

Million yen

216,639

238,611238,619

238,638

238,712(+0.1)(+10.1)(+0.0)(+0.0)(+0.0)

Million yen

210,395

231,653

231,653

231,653

231,653

Million yen

6,152

6,657

6,666

6,687

6,761

%

100.0

96.9

100.0

100.0

100.0

Units

873,000

923,000

923,000

923,000

923,000

Yen

248,154258,516

258,525

258,546

258,626

Yen

7,048

7,213

7,223

7,245

7,326

Yen

7,048

7,213

7,223

7,245

7,326

Yen

–

–

–

–

–

%

1.4

1.6

1.5

1.5

1.5

%

2.9

3.2

3.0

3.0

3.0

%

2.8

3.0

2.8

2.8

2.8

%

5.6

6.1

5.5

5.7

5.6

216,384

216,639

238,611238,619

238,638

50.1

53.5

53.4

53.5

53.4

(-1.6)(+3.4)(-0.0)(+0.0)(-0.1)

%

43.7

40.7

40.6

40.6

40.5

Times

9.9

10.7

11.2

11.6

12.0

Million yen

9,269

9,452

9,430

9,442

9,500

%

Million yen%

Million yen

931

887

842

812

794

Million yen

10,09010,216

10,252

10,033

10,285

%

4.7

4.7

4.7

4.7

4.7

Million yen

9,366

9,652

9,627

8,887

9,158

%

4.4

4.4

4.4

4.1

4.2

63

62

62

62

62

679

730

745

747

747

m2

477,249.40

477,972.54

478,169.25

478,117.02

478,088.25

%

98.6

98.0

98.5

98.8

99.2

(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

3030

Japan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (30th fiscal period: ¥423.65 billion, 31st fiscal period: ¥439.89 billion, 32nd fiscal period: ¥435.05 billion,
33rd fiscal period: ¥435.05 billion and 34th fiscal period: ¥435.05 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: 30th fiscal period: 184 days, 31st fiscal period: 181 days,
32nd fiscal period: 184 days, 33rd fiscal period: 181 days and 34th fiscal period: 184 days.
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

(2) 34th 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 923,000 units as of today. 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 34th fiscal period, the Japanese economy continued to witness a moderate recovery, as improvements in corporate earnings
led to an increase in capital investment while consumer spending showed a pickup under the solid employment and income
environment, despite certain industries taking a cautious stance on the business outlook. The overseas economy also continued tostay on a mild recovery path, although political and economic risk factors including trade issues still exist nonetheless.
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 which JPR targets for investment. Consumption by
inbound foreign tourists also showed robust results, despite being temporarily impacted by natural disasters, and the leasing market
for urban retail properties continued to stay in good shape in good locations, such as Ginza, Omotesando and Shinsaibashi.
The For-Sale Real Estate Market
In the for-sale real estate market, investors remain highly willing to purchase properties while blue-chip properties are in short
supply. With low-yield transactions continuing to prevail, the acquisition environment remains harsh. Accordingly, investors
continue to look for ways to effectively acquire properties, such as diversifying the target assets for investment and conducting
asset replacement.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality 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 34th fiscal period, JPR investigated possible investments primarily in office properties in the Tokyo area, but noacquisition was closed and completed. As of the end of December 2018, the balance of JPR’s assets under management totaled 62
properties, or 435.0 billion yen on an acquisition price basis, with the total leasable floor space standing at 478,088m2 and thenumber of tenants at 747.

3131

Asset Management Report

Operational Management of Portfolio
In the office property leasing market in the 34th fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving its
occupancy rate. As a result of these efforts, the occupancy rate at the end of the 34th fiscal period increased 0.4 points period-onperiod to 99.2%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with an aim to create spaces where the workers feelsatisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning systems andreplacement of lighting equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple properties.
With regard to initiatives on environmental issues, JPR has continuously obtained the DBJ Green Building Certification *1, having
acquired the Certification for 17 of the buildings it owns as of December 31, 2018. Moreover, in the GRESB *2 Real Estate
Assessment (the survey conducted in 2018), JPR was designated as “Green Star,” marking the fifth consecutive year of recognition
with the highest ranking in the survey. JPR was also granted a higher rank of “4 Stars” in the GRESB Rating, which makes relative
assessment based on total scores, for three consecutive years. In addition, JPR has been granted a higher assessment of “Rank A”
in the CASBEE for Building Certification*3 for its Yakuin Business Garden.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on thescoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate
disaster and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 60 organizations worldwide such as European pension asset managers.
*3 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental
performance of buildings. Efforts to develop and popularize the system in Japan are being made under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on lengthening the debt maturity and diversifying repayment dates,in an effort to make its financial base more solid and stronger against the backdrop of the favorable fund procurement environment
and low interest rates. In the 34th fiscal period, JPR borrowed 10.0 billion yen to fund the refinance of interest-bearing debts thatmatured during the fiscal period. The average maturity of and the average interest on the new interest-bearing debts stood at 6.7
years and 0.54%, respectively, in contrast to 5.6 years and 0.92% for the relevant interest-bearing debts before refinancing.
As of the end of the 34th fiscal period, the balance of interest-bearing debts totaled 181.0 billion yen, with balance of borrowingsof 155.5 billion yen and balance of investment corporation bonds of 25.5 billion yen. The ratio of interest-bearing debt to total
assets (Note 1) was 40.5%, long-term and fixed interest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3) was
0.90% and average maturity (Note 4) was 4.5 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, 2018
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

S & P Global Ratings Japan Inc.

Long-term: A (Stable)
Short-term: A-1(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment 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 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 34th fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

32

32

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

Number of Units
Outstanding

Event

Unitholders' Capital(millions of yen)

Remarks

Variation
45,700

Balance
870,700

Variation
17,472

Balance
209,516(Note 1)

June 16, 2015

Additional public offering

June 24, 2015

Third-party allotment

2,300

873,000

879

210,395(Note 2)January 24, 2017

Additional public offering

47,600920,600

20,237

230,632(Note 3)February 14, 2017

Third-party allotment

2,400

923,000

1,020

231,653(Note 4)(Note 1)

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 2)

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

(Note 3)New investment units were issued through a public offering at 439,040 yen per unit (underwriting price of 425,152 yen per unit) to fund acquisition of new specificassets and partly repay debts.

(Note 4)

New investment units were issued through a third-party allotment at 425,152 yen per unit to fund acquisition of new specific assets and partly repay debts.

(4) Cash Distributions
With regard to the cash distributions of the 34th fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 33rd fiscal period, with the aim of having the profit distributions deducted as expenses
based on adoption of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result,the cash distribution per unit came to 7,326 yen for the 34th fiscal period.
(Thousands of yen unless otherwise indicated)

Fiscal Period

Unappropriated Retained Earnings at End of Period
Internal Reserves

30th Fiscal
Period31st Fiscal
Period32nd Fiscal
Period33rd Fiscal
Period34th Fiscal
Period(Jul. 1, 2016 Dec. 31, 2016)(Jan. 1, 2017 Jun. 30, 2017)(Jul. 1, 2017 Dec. 31, 2017)(Jan. 1, 2018 Jun. 30, 2018)(Jul. 1, 2018 –Dec. 31, 2018)

6,169,462

6,883,962

6,681,774

6,701,131

6,774,889

16,558226,363

14,945

13,996

12,991

6,152,904

6,657,599

6,666,829

6,687,135

6,761,898(Cash Distribution per Unit)(7,048 yen)

(7,213 yen)

(7,223 yen)

(7,245 yen)

(7,326 yen)

Total Cash Distributions from Net Income

6,152,904

6,657,599

6,666,829

6,687,135

6,761,898(Cash distribution from net income per unit)(7,048 yen)

(7,213 yen)

(7,223 yen)

(7,245 yen)

(7,326 yen)

–

–

–

–

–

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

–

–

–

–

–

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

–

–

–

–

–

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

Total Cash Distributions

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

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy is anticipated to recover moderately, given continued improvements in the employment andincome environments and supported by the effects of various policies. However, attention should be paid to the uncertainty in overseas
economies, the outcome of trade issues and the impacts of fluctuations in the financial and capital markets.
In the office property leasing market, new supply in the 23 wards of Tokyo is expected to increase through 2020. However, as leasingof newly-constructed buildings continues to be strong, the market situation in general is likely to stay in good shape. 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 tenantsatisfaction 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 in which cap rates are decreasing
in a low interest rate environment, it is required to firmly keep the attitude of vigorously selective investment for implementing realestate investment that assumes possession of properties over the medium to long term.

3333

Asset Management Report

1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve the quality of its portfolio
and enhance its growth potential and stability over the long term. Given the briskness in the office property leasing market, the forsale real estate market sees a decrease in purchase cap rate and expected cap rate levels. Moreover, with properties remaining inshort supply, there are deals closed at prices that have factored in lower cap rates and rent increases. However, 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 selected 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.
Furthermore, in consideration of the change in the environments surrounding the office market, including an increase in highquality medium-sized office properties with favorable location, quality and performance as well as solid demand for such officeproperties in accordance with the diversification of tenant needs, JPR considers that, while focusing investments on buildings witha total floor space of approximately 1,000 tsubos or more as core targets, it should lead to continuous growth of JPR and enhanced
unitholder value through an increase in acquisition opportunities if JPR also targets properties that fall below this standard, after
taking into account the characteristics, etc. of individual properties. Based on this judgment, amendments were made to the JPR
Asset Management Guidelines, an internal rule of the Asset Manager, with regard to the standard size of office properties as of July
1, 2018. With no change in its investment attitude of focusing on quality even after the amendments, JPR will continue its vigorously
selective investments going forward.
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 following market trends and carefully researchinginvestment value, including the future potential of candidate properties.
Furthermore, JPR will also investigate asset replacement while taking into consideration the timing of implementation, in order toimprove the quality of its portfolio and enhance its growth potential over the long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and increase tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

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

(7) Significant Subsequent Events
Not applicable3434

Japan Prime Realty Investment Corporation<Reference Information>
Property Acquisition
On February 14, 2019, JPR decided to acquire the following property.
<Shinagawa Canal Bldg. (additional ownership)>
Property overview
Location:
2-12-33 Konan, Minato-ku, Tokyo (residential address)
Type of ownership:
Land: Ownership (co-ownership: 4.6%)
Building: Unit ownership
Site area:
828.82m2 (equivalent to co-ownership interest: 37.74m2）
Total floor space:
5,216.21m2 (floor space of the co-ownership to be acquired: 166.66m2）
Structure/floors:
S with flat roof, B1/8F
Completed:
July 2008*As of the contract date, the section to be acquired is used by the seller on its own. However, JPR plans to lease the section to third
parties other than the seller after the acquisition. The total leasable floor space for the section to be acquired will then be 169.93m2.

Transaction terms and conditions
Purchase price:
171 million yen
Asset type:
Real estate
Contract date:February 14, 2019
Planned acquisition date: March 8, 20193535

Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital
30th Fiscal
Period as ofDecember 31, 2016
5,000,000

31st Fiscal
Period as ofJune 30, 2017
5,000,000

32nd Fiscal
Period as ofDecember 31, 2017
5,000,000

33rd Fiscal
Period as ofJune 30, 2018
5,000,000

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

Total number of units issued andoutstanding

873,000

923,000

923,000

923,000

923,000

Unitholders' capital (millions of yen)

210,395

231,653

231,653

231,653

231,653

Total number of unitholders

11,177

12,535

12,196

11,647

11,050Total 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 34th 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

194,981

21.12

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

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

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

121,463

13.15

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

34,595

3.74

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

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

31,979

3.46

Tokyo Tatemono Co., Ltd.

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

29,3003.17

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.70

Meiji Yasuda Life Insurance Company

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

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

24,000

2.60

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

21,7082.35

JPMorgan Chase Bank 385771 (Standing Proxy:
Settlement & Clearing Services Department, Mizuho
Bank, Ltd.)

25 Bank Street, Canary Wharf, London, E14
5JP, United Kingdom(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

12,1001.31

State Street Bank and Trust Company 505103 (Standing
Proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)

P.O. Box 351, Boston, MA 02101, U.S.A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

9,089

0.98

504,215

54.62

Total
(Note) Percentage of total units outstanding is rounded down 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 34th fiscal period are as follows.
Name

Executive Officer

Satoshi Okubo

Director, Tokyo Realty Investment Management, Inc.

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

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

4,200

EY ShinNihon LLC–

13,300Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

Other Current Assignments

Total Directors' Fee
during the 34th Fiscal
Period (thousands of yen)
2,400

Position

Numberof Owned
Units
1
–
–
–

(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.

3636

Japan Prime Realty Investment Corporation

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

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 34th fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

3737

Asset Management Report

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

33rd Fiscal Period(as of June 30, 2018)

Area

34th Fiscal Period(as of December 31, 2018)

Central Tokyo

Assets owned by JPR(thousands of yen)
86,485,677

Percentage of total
assets (%)
19.4

Assets owned by JPR(thousands of yen)
86,379,200

Percentage of total
assets (%)
19.3

Greater Tokyo

56,571,627

12.7

56,392,363

12.6

Other Cities

20,394,211

4.6

20,261,285

4.5

Central Tokyo

156,212,234

35.0

155,976,035

34.9

Greater Tokyo

50,374,846

11.3

50,267,329

11.2

Other Cities

41,756,365

9.4

41,688,392

9.3

Deposits and otherassets–34,502,815
(–)

7.7
(–)

36,193,094
(–)

8.1
(–)

Total assets–

446,297,778(411,794,962)

100.0(92.3)

447,157,702(410,964,607)

100.0(91.9)

Real estate

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

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 34th 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

11.6

OfficeOlinas Tower

27,143,831

23,987.40

23,987.40

100.0

6.6

OfficeShinjuku Center Bldg.

22,183,435

8,865.71

8,638.74

97.4

3.4

OfficeTokyo Square Garden

18,582,159

5,971.73

5,829.84

97.6

2.7

OfficeBYGS Shinjuku Bldg.

15,391,893

15,227.80

15,158.14

99.5

3.8

OfficeJPR Sendagaya Bldg.

14,824,315

6,177.74

6,177.74

100.0

1.9

OfficeKanematsu Bldg.

14,578,607

7,994.02

7,592.33

95.0

2.4

OfficeShinjuku Square Tower

13,264,965

19,266.38

19,266.38

100.0

2.8

OfficeKawasaki Dice Bldg.

13,248,837

12,067.44

11,537.92

95.6

2.6

RetailJPR Umeda Loft Bldg.

12,402,856
190,009,159

18,586.97
129,179.97

18,586.97
127,810.24

100.0
98.9

2.3
39.9

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

3838

Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 34th fiscal period (December 31, 2018).

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,
Chuo-ku, Tokyo

Shin-Kojimachi Bldg.

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

21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, TokyoMS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower

OfficeBYGS Shinjuku Bldg.

Retail

14,578,607

14,000,000

2,418,998

2,520,000

1,985,343

2,710,000

2,449,003

3,860,000

3,236,284

3,570,000

10,905,685

13,500,000

2,919,555

3,510,000

5,190,182

4,830,000

2,812,890

4,950,000

13,264,965

14,800,000

15,391,893

18,900,000

588,855

894,000

Real estate

22,183,435

16,600,000

Real estate

3,820,914

2,900,000

Shinagawa Canal Bldg.

Real estate

1,718,310

2,020,000

Rokubancho Bldg.

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

Real estate
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

2,823,046

3,490,000

8,674,767

11,000,000

5,285,486

5,700,000

Shinjuku Center Bldg.

JPR 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,
TokyoTokyo Square Garden

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

JPR Shibuya Tower Records Bldg.

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

4,710,927

6,830,000

14,824,315

12,100,000

3,701,506

4,080,000

38,388,259

48,300,000

2,716,906

3,470,000

4,160,287

6,830,000

18,582,159

20,600,000

11,478,896

14,100,000

4,273,906

4,110,000

JPR Jingumae 432

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

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

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

2,595,975

2,970,000

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

Real estate

3,302,926

3,300,000

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

10,142,534

11,300,000

3,228,408

3,640,000

4,242,553

6,570,000

2,219,756

1,780,000

2,438,628

2,340,000

1,408,817

1,930,000

7,240,612

10,000,000

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

Real estate

2,952,426

5,020,000

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

Beneficiaryinterest

2,877,826

3,960,000

Real estate

5,231,137

8,560,000

FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
OfficeBeneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate
Real estate

Minami Azabu Bldg.

Central Tokyo

13-23 Shibaura 4-chome, Minato-ku, Tokyo
8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

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

Across Shinkawa Bldg. Annex

JPR Nihonbashi-horidome Bldg.

Greater Tokyo

Location

Appraisal ValueBook Valueas of December 31,
as of December 31,
2018
2018
(thousands of yen)(thousands of yen)
(Note)

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

2-1 Kinshi 3-chome, Sumida-ku, Tokyo
1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba
17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama

Real estate

5,369,234

6,660,000

Real estate

27,143,831

38,100,00039
39

Asset Management Report

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

RetailGreater Tokyo

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

OfficeOther Cities

1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa
3-1 Bessho 7-chome, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa

JPR Umeda Loft Bldg.

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

Housing Design Center Kobe

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

Tenjin 121 Bldg.
JPR Dojima Bldg.

Yakuin Business Garden

Retail

1-1 Tanashicho 2-chome, Nishitokyo, Tokyo

JPR Shinsaibashi Bldg.

Sompo Japan Wakayama Bldg.

JPR Nagoya Fushimi Bldg.

JPR Chayamachi Bldg.
Total

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

Form ofOwnership
Real estate

7,018,346

8,870,000

5,738,296

8,760,000

7,224,810

12,500,000

Real estate

1,678,237

2,860,000

Real estate

6,999,150

5,690,000

3,627,190

4,350,000

13,248,837

16,200,000

1,598,194

2,250,000

4,256,676

3,500,000

2,955,717

3,650,000

1,346,054

1,950,000

2,403,959

4,110,000

1,324,528

1,620,000

2,053,667

3,150,000

2,164,846

3,410,000

Real estate

3,849,431

3,030,000

Real estate

10,312,413

18,000,000

Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest

5,147,680

4,420,000

12,402,856

14,200,000

Real estate

6,099,440

7,430,000

Beneficiaryinterest

6,034,211

7,510,000

410,964,607

493,764,000

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

4040

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

7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka

Sompo Japan Sendai Bldg.

(Note)

Location

Appraisal ValueBook Valueas of December 31,
as of December 31,
2018
2018
(thousands of yen)(thousands of yen)
(Note)

Japan Prime Realty Investment Corporation

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

OfficeOfficeRetailOther Cities

RetailGreater Tokyo

RetailCentral Tokyo

OfficeArea Type

Property Name

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

33rd Fiscal Period
34th Fiscal Period(from Jan. 1, 2018 to Jun. 30, 2018)(from Jul. 1, 2018 to Dec. 31, 2018)
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)10
100.0
383,8962.5
9
95.0
394,3192.5
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
4
93,240
0.6
100.0
5
100.0
127,1630.8
17110,589
0.7
100.0
17
100.0
110,8640.7
6108,088
0.7
100.0
7
100.0
105,0410.7
10440,719
2.9
100.0
10
100.0
456,5682.9
3131,046
0.9
100.0
3
100.0
132,240
0.8
10
100.0
145,0711.0
9
92.0
187,7601.2
2
100.0
189,7471.2
2
100.0
191,064
1.2
25
100.0
383,007
2.5
24
100.0
393,9822.5
24
99.5
591,3153.9
23
99.5
593,5683.8
4100.0
37,0460.2
4100.0
37,2040.2
33
97.3
501,8093.3
34
97.4
509,2013.3
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
60,0080.4
5100.0
65,7980.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
9100.0
256,2471.7
9
100.0
269,6571.7
9
100.0
209,400
1.4
9
100.0
210,8811.3
5
100.0
186,9251.2
5100.0
192,1161.2
6
100.0
279,2051.8
6
100.0
289,5851.9
9100.0
119,6210.8
9100.0
120,735
0.8
2

100.0

1,630,000

10.7

2

100.0

1,679,499

10.7

23
9
49
1
7
1

96.6
100.0
92.9
100.0
100.0
100.0

117,626
184,079
393,655(Note 2)
79,967(Note 2)

0.8
1.2
2.6
(Note 2)0.5
(Note 2)

22
9
50
1
7
1

94.1
100.0
97.6
100.0
100.0
100.0

113,472
186,745
391,318(Note 2)
89,057(Note 2)

0.7
1.2
2.5
(Note 2)0.6
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

9
6
6
39
17
22
45
10
19
1
39
16
18
4
1
1
1
3
28
9
9
44
19
15
14
16
12
4
17
9
1
1
5
747

100.0
100.0
100.0
96.9
93.9
100.0
100.0
100.0
80.9
100.0
100.0
98.6
95.4
100.0
100.0
100.0
100.0
100.0
86.9
98.5
90.2
100.0
100.0
100.0
96.6
100.0
96.4
99.5
99.9
96.8
100.0
100.0
100.0
98.8

199,112
94,604
254,552
136,127
140,946
104,935
423,596
143,708
159,825(Note 2)334,971952,098
286,434
271,222(Note 2)
(Note 2)
(Note 2)
127,048
502,477
125,109
114,854
155,526
99,954
187,852
106,812107,216
143,593
145,214501,900
73,706(Note 2)
(Note 2)
164,422
15,204,965

1.3
0.6
1.7
0.9
0.9
0.7
2.8
0.9
1.1
(Note 2)
2.2
6.3
1.9
1.8
(Note 2)
(Note 2)
(Note 2)
0.8
3.3
0.8
0.8
1.0
0.7
1.2
0.7
0.7
0.9
1.0
3.3
0.5
(Note 2)
(Note 2)
1.1
100.0

9
6
6
40
17
20
44
10
21
1
38
17
19
4
1
1
1
3
28
10
8
44
19
15
15
16
12
4
16
9
1
1
5
747

100.0
100.0
100.0
98.4
93.9
94.8
100.0
100.0
91.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.6
100.0
91.1
100.0
100.0
99.7
98.3
100.0
100.0
99.5
99.9
96.9
100.0
100.0
100.0
99.2

208,549
93,921
265,642
137,738
123,790
105,310440,835
169,995
134,563(Note 2)
340,397
1,010,621
291,597279,746(Note 2)
(Note 2)
(Note 2)
127,041
478,174
123,928
149,527
160,651
105,733
187,991
107,722
115,021124,077
148,489
532,131125,002(Note 2)
(Note 2)
167,616
15,652,749

1.3
0.6
1.7
0.9
0.8
0.7
2.8
1.1
0.9
(Note 2)
2.2
6.5
1.9
1.8
(Note 2)
(Note 2)
(Note 2)
0.8
3.1
0.8
1.0
1.0
0.7
1.2
0.7
0.7
0.8
0.9
3.4
0.8
(Note 2)
(Note 2)
1.1
100.0

4141

Asset Management Report(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg.
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 withthe lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above.
There were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of
the 34th fiscal period.

4242

Japan Prime Realty Investment Corporation

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for 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.

Property Name
Kawaguchi Center
Bldg.
Tokyo Tatemono
Yokohama Bldg.

Location

PurposeSchedule

Kawaguchi-shi,
Saitama
Yokohama-shi,
Kanagawa

4th through 6th phases of replacement of air
conditioning units

Oct. 2018~Mar. 2020

294

–

–

2nd phase of renovation of common-use areas

Jan. 2019~Jun. 2019

155

–

–

Replacement of toilets, hot-water supply rooms
and cleaning equipment closets on 1st and 4th
through 8th floors

Sep. 2018~Mar. 2019

101

–

–

Jan. 2019~Jun. 2019

100

–

–

May 2019~Oct. 2019

90

–

–

JPR Ningyo-cho Bldg. Chuo-ku, Tokyo
Sumida-ku,
Tokyo
Osaka-shi,
JPR Umeda Loft Bldg.
Osaka
Kanematsu Bldg.
Chuo-ku, Tokyo
Naha-shi,
JPR Naha Bldg.
Okinawa
Olinas Tower

MS Shibaura Bldg.

Rokubancho Bldg.
JPR Harajuku Bldg.

Planned (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 34th
Paid
Fiscal Period

Replacement of automatic control equipment
on lower office-use floors

2nd through 3rd phases of replacement ofescalators

Replacement of security systems

Aug. 2018~Feb. 2019

71

–

–

Reinforcement of elevators

Oct. 2018~Jun. 2019

64

–

–

Minato-ku,
Tokyo

Replacement of emergency power
generation facilities

Aug. 2018~Jan. 2019

62

–

–

Chiyoda-ku,
TokyoShibuya-ku,
Tokyo

Replacement of air conditioning units on 1st
basement floor and 7th floor

Nov. 2018~Jan. 2019

48

–

–

Replacement of mechanical parking systems

Nov. 2018~Mar. 2019

38

–

–

(2) Capital Expenditures during the 34th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 34th 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 583 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name
Kawaguchi Center Bldg.
Tokyo Tatemono Yokohama
Bldg.
JPR Umeda Loft Bldg.
Tokyo Tatemono Yokohama
Bldg.
JPR Hakata Bldg.
JPR Ningyo-cho Bldg.

Location

PurposeOsaka-shi, Osaka

3rd phase of replacement of air
conditioning units
1st phase of renovation of commonuse areas
1st phase of replacement of escalators

Yokohama-shi, Kanagawa
Fukuoka-shi, Fukuoka
Chuo-ku, Tokyo

Kawaguchi-shi, Saitama
Yokohama-shi, Kanagawa

PeriodConstruction
Expenses(millions of yen)

Apr. 2018~Sep. 2018176

Aug. 2018~Dec. 2018110

Jun. 2018~Jul. 201846

Reinforcement of elevators

Jul. 2018- Dec. 201843

Reinforcement of elevators
Renovation work on 3rd floor

May 2018~Jul. 2018
Sep. 2018~Oct. 2018

41
22

4343

Asset Management Report

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

Other Properties

684
1,126

(Note) Expenditures for repair and maintenance included 13 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.
Operation Period
Balance of deposits at
beginning of current period
Deposits during the period
Amounts used from
deposits during the period
Deposits carried forward to
the next period

4444(Millions of yen)

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

31st Fiscal Period(Jan. 1, 2017 Jun. 30, 2017)

32nd Fiscal Period(Jul. 1, 2017 Dec. 31, 2017)

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

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

936

931

1,075

1,178

1,215

393

479

422

821

624

398

335

319

784

617

931

1,075

1,178

1,215

1,222

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
33rd Fiscal Period(Jan. 1, 2018 - Jun. 30, 2018)

Item

34th Fiscal Period(Jul 1, 2018 - Dec. 31, 2018)(a) Asset Management Fees

553,336

Fixed compensation

75,000559,342
75,000

Incentive-based compensation 1

271,473

275,168

Incentive-based compensation 2

206,862

209,174(b) Administrative Service and Custodian Fees

79,93979,429(c) Directors' Fee

6,600

6,600

(d) Trust Fees

25,90824,251(e) Other Expenses
Total

89,04785,553754,831755,177(2) Status of Loans Payable
As of December 31, 2018 JPR has the following loans payable.

Long-Term Loans Payable

Category

LenderDrawdown
Date

Balance as Balance asInterestof Jul. 1,of Dec. 31,
Rate (%)
2018
2018(Note 1)(millions of (millions of(Note 2)
yen)
yen)
2,000
2,000
1.027

Repayment
Date

Repayment
MethodMizuho Bank Ltd.

Dec. 5, 2012

Mizuho Bank Ltd.

Nov. 27, 2013

3,000

3,000

0.970

Mizuho Bank Ltd.

Jun. 27, 2014

5,000

5,000

1.178

Jun. 27, 2023

Mizuho Bank Ltd.

Mar. 11, 2015

2,000

2,000

1.011

Mar. 11, 2024

Mizuho Bank Ltd.

Mar. 24, 2015

2,000

2,000

1.056

Mar. 24, 2025

Mizuho Bank Ltd.

Feb. 4, 2016

5,000

5,000

0.804

Feb. 4, 2026

Mizuho Bank Ltd.

Mar. 30, 2017

3,000

3,000

0.351

Mar. 30, 2021

Mizuho Bank Ltd.

Mar. 30, 2017

4,000

4,000

0.400

Mar. 30, 2022

Mizuho Bank Ltd.

Nov. 21, 2017

1,000

1,000

0.795

Nov. 19, 2027

MUFG Bank, Ltd.

Aug. 8, 2012

1,000

1,000

1.178

Aug. 8, 2019

MUFG Bank, Ltd.

Dec. 5, 2012

1,000

1,000

1.027

MUFG Bank, Ltd.

Nov. 27, 2013

3,000

3,000

0.970

MUFG Bank, Ltd.

Jun. 27, 2014

4,000

4,000

0.889

MUFG Bank, Ltd.

Aug. 31, 2015

1,000

1,000

0.873

Nov. 27, 2020 Principal lump
sum repayment
Jun. 25, 2021 on maturity
Aug. 31, 2023

MUFG Bank, Ltd.

Mar. 25, 2016

5,000

5,000

0.510

Mar. 25, 2024

MUFG Bank, Ltd.

Dec. 15, 2016

2,000

2,000

0.633

Dec. 13, 2024

MUFG Bank, Ltd.

Aug. 8, 2017

1,000

1,000

0.638

Aug. 8, 2025

MUFG Bank, Ltd.

Aug. 29, 2017

5,000

5,000

0.600

Aug. 29, 2025

MUFG Bank, Ltd.

Sep. 5, 2017

3,000

3,000

0.593

Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

Dec. 5, 2012

1,000

1,000

1.027

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

Jun. 27, 2013

3,000

3,000

1.265

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

2,500

1.033

Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

2,000

2,000

0.351

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

4,000

4,000

0.400

Mar. 30, 2022

Development Bank of Japan, Inc.

Jun. 26, 2009

2,200

2,100

3.190

Jun. 27, 2019

Development Bank of Japan, Inc.

Jun. 27, 2013

820

820

1.449

Jun. 25, 2021

Development Bank of Japan, Inc.

Dec. 5, 2013

2,000

2,000

1.188

Dec. 3, 2021

Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056

Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15, 2016

3,000

3,000

0.843

Jun. 14, 2027

Development Bank of Japan, Inc.

Nov. 21, 2017

1,000

1,000

0.795

Nov. 19, 2027

Shinsei Bank, Ltd.

Apr. 5, 2012

5,000

5,000

1.397

Shinsei Bank, Ltd.

Sep. 24, 2013

2,000

2,000

1.076

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134

Dec. 5, 2024

Shinsei Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.843

Jun. 14, 2027

Aozora Bank Ltd.

Aug. 8, 2012

2,000

2,000

1.178

Aug. 8, 2019

Aozora Bank Ltd.

Aug. 30, 2012

2,000

－

1.146

Aug. 30, 2018

Use

Remarks

Dec. 5, 2019Nov. 27, 2020

Dec. 5, 2019

(Note 3) Unsecured/
Unguaranteed(Note 4)

Principal lump
Apr. 5, 2019 sum repayment
on maturity
Sep. 24, 2020

4545

Asset Management Report

Category

Aozora Bank Ltd.

Balance as Balance asInterestof Jul. 1,of Dec. 31,
Drawdown
Rate (%)
2018
2018
Date
(Note 1)(millions of (millions of(Note 2)yen)
yen)
Sep. 30, 2013
1,000
1,000
1.069

Aozora Bank Ltd.

Jul. 3, 2017

900

900

0.625

Jul. 3, 2025

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.534

Aug. 23, 2024

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.574

Feb. 25, 2025

Aozora Bank Ltd.

Aug. 30, 2018

－

2,000

0.553

Feb. 25, 2025

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

3,000

1.076

Feb. 4, 2020

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2017

4,000

4,000

0.309

Mar. 30, 2020

Shinkin Central Bank

Dec. 5, 2013

3,000

－

0.689

Dec. 5, 2018

Shinkin Central Bank

Dec. 15, 2016

2,000

2,000

0.388

Dec. 14, 2021

LenderRepayment
Date

Repayment
MethodUse

Remarks

Sep. 24, 2020

Shinkin Central Bank

Dec. 5, 2018

－

3,000

0.663

Jun. 4, 2027

The Bank of Fukuoka, Ltd.

Sep. 24, 2013

1,000

1,000

0.911

Sep. 24, 2019

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2016

2,000

2,000

0.480

Jul. 7, 2026

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813

Jun. 21, 2028

The Shinkumi Federation Bank

Feb. 5, 2018

4,000

4,000

0.404

Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.388

Dec. 14, 2021

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011

Dec. 25, 2020

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

0.969

Sep. 24, 2024

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Jun. 5, 2028

The Chugoku Bank, Ltd.

Sep. 24, 2013

1,000

－

0.758

Sep. 25, 2018

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Chugoku Bank, Ltd.

Sep. 25, 2018

－

1,000

0.661

The Norinchukin Bank

Dec. 15, 2016

2,000

2,000

0.388

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

0.604

Mar. 25, 2026 Principal lump
Unsecured/Dec. 14, 2021 sum repayment (Note 3) Unguaranteedon maturity
Jun. 5, 2025

ORIX Bank Corporation

Nov. 27, 2013

2,000

2,000

0.762

May 27, 2019

Sumitomo Life Insurance Company
National Mutual Insurance Federation ofAgricultural Cooperatives

Oct. 11, 2016

2,000

2,000

0.453

Oct. 11, 2024

Dec. 15, 2016

2,000

2,000

0.388

Dec. 14, 2021

Dec. 25, 2015

2,000

2,000

0.759

Dec. 25, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.489

Oct. 9, 2020

The Hachijuni Bank, Ltd.

Sep. 26, 2016

1,000

1,000

0.209

Sep. 24, 2021

Resona Bank, Ltd.

Mar. 30, 2017

2,000

2,000

0.438

Sep. 30, 2022

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

Oct. 6, 2023

NTT FINANCE CORPORATION

May 31, 2018

1,000

1,000

0.408

May 31, 2023

The 77 Bank, Ltd.

May 31, 2018

1,000

1,000

0.408

The Daishi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396

Daido Life Insurance Company

Dec. 27, 2013

1,000

－

0.710

May 31, 2023
Nov. 21,2022
Dec. 27, 2018

Daido Life Insurance Company

Dec. 27, 2018

－

1,000

0.316

Dec. 25, 2023

The Chiba Bank, Ltd.

Oct. 25, 2018

－

1,000

0.449

Oct. 25, 2023

Sompo Japan Nipponkoa Insurance Inc.

Tokio Marine & Nichido Fire InsuranceCo., Ltd
Tokio Marine & Nichido Fire InsuranceCo., LtdThe Hyakugo Bank, Ltd.

Dec. 27, 2013

1,000

－

0.710

Dec. 27, 2018

Dec. 27, 2018

－

1,000

0.299

Jun. 27, 2023

Oct. 25, 2018

－

1,000

0.582

Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396

Nov. 21, 2022

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691

Mar. 25, 2026

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795

Nov. 19, 2027

153,620

155,520

Total(Note 1) The interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
(Note 2) 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.

4646

Japan Prime Realty Investment Corporation(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of December 31, 2018 are as follows.
Balance as of
Balance as of
CouponRate
Jul. 1, 2018
Dec. 31, 2018(%)
(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

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

–

1.340

Oct. 25, 2018

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

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

Twenty-third Series ofInvestment Corporation
Bonds

May 31, 2018

3,000

3,000

0.550

May 31, 2028

27,50025,500

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 applicable47
47

Asset Management Report

6. Acquisitions and Sales during the 34th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Not applicable(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 34th fiscal period.

(3) Survey on Values of Specified Assets, etc.
Not applicable(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of special assets or other deals with interested parties and major shareholders were conducted during the 34th fiscal
period.
2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

306,178

Outsourcing Fees

595,689

Tenant Brokerage Fees

58,728

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
258,037
Prime Place Co., Ltd.
5,029
Tokyo Tatemono Co., Ltd.
460,957
Prime Place Co., Ltd.
6,055
Tokyo Tatemono Co., Ltd.
19,327(Thousands of yen)
Ratio to Total
Amount(B/A))
84.3%
1.6％
77.4%
1.0％
32.9％

(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 26,768 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 34th fiscal period.
Tokyo Tatemono Co., Ltd.

793,385 thousand yen

Prime Place Co., Ltd.

12,668 thousand yen

Tokyo Real Estate Management Co., Ltd.

199,797 thousand yen

Shinjuku Center Building Management Co., Ltd.

55,544 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

4848

Japan Prime Realty Investment Corporation

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

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

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

4949

Asset Management Report

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

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

–

40

January 22, 2002 (Note)

60

–

100

Accumulated Total

100

–

100

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

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

Ratio to Total Units Issued
and Outstanding (%)

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

31st Fiscal Period(Jan. 1, 2017 – Jun. 30, 2017)

100

20

0.0

32nd Fiscal Period(Jul. 1, 2017 – Dec. 31, 2017)

100

20

0.0

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

100

20

0.0

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

100

20

0.0

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

5050

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

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

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

11. Other(1) Notice
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 34th
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.

5151

Financial Statements(1) Balance Sheets(Thousands of yen)
End of 33rd Fiscal Period(Jun. 30, 2018)
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
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net

21,115,284
12,066,268
519,291
125,944
9,946

22,784,298
12,272,570
291,925
154,612
12,68433,836,736

35,516,093

58,129,064(16,630,904)
41,498,159

58,539,550(17,455,409)
41,084,140

91,196,238(32,358,841)
58,837,397

91,792,275(33,416,345)

128,416(80,101)
48,315132,143(82,714)56,009(22,098)
33,911

766,233(479,329)
286,904

58,375,930
57,822(23,681)
34,14049,428785,258(499,698)
285,560

1,740,193(1,360,749)
379,443

1,804,644(1,382,079)

206,505(144,155)
62,350220,120(152,319)

92,427(50,840)
41,587422,564
103,924(55,707)48,21767,801Land
Land in trust
Construction in progress
Construction in progress in trust

106,890,048
189,014,043
11,076842

106,890,048
189,014,043
933
982

Total property, plant and equipment

397,104,080

396,273,790

14,689,483
1,398

14,689,483
1,333

14,690,882

14,690,817

445,742
73,853495,000
54,645Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

5230

End of 34th Fiscal Period(Dec. 31, 2018)

519,595

549,646

412,314,558

411,514,253

123,668
22,814

111,879
15,475

146,483

127,355446,297,778

447,157,702

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 33rd Fiscal Period(Jun. 30, 2018)
Liabilities
Current liabilities
Operating accounts 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
Other

End of 34th Fiscal Period(Dec. 31, 2018)

1,971,763
17,200,000
2,000,000
634,670
76,135605
244,506
2,761,325
148

2,472,423
17,100,000
4,000,000
643,51276,085605
262,365
2,826,373
1,794

24,889,153

27,383,160

25,500,000
136,420,000
7,938,170
12,911,767

21,500,000
138,420,000
7,937,385
13,204,713

Total noncurrent liabilities

182,769,937

181,062,098

Total liabilities

207,659,091

208,445,258

231,653,198

231,653,198

284,356

284,356

Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*2

284,356

284,356

6,701,131

6,774,889

6,985,488

7,059,245

238,638,686

238,712,444

238,638,686
446,297,778*2

238,712,444
447,157,702

3153

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

Operating revenue
Rent revenue-real estate

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

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

Operating expenses
Expenses related to rent business
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
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other

*1

7,114,506
553,336
79,9396,600
25,90889,047

15,652,749
15,652,749*1

7,311,291
559,342
79,4296,600
24,251
85,5537,869,337

8,066,468

7,335,628

7,586,281

173
216,700
8,663
2,001

177
4,002
20,9382,015

227,540

27,134

626,046
34,296
186,345
13,621
14,121
3,030

618,405
34,772
176,569
11,7887,339
3,044

877,460

851,918

6,685,708

6,761,497

1,082

－

1,082
6,686,791－
6,761,497

Income taxes-current

605

605

Total income taxes

605

605

Net income

6,686,186

6,760,892

Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

14,945
6,701,131

13,9966,774,889

Total non-operating expenses
Ordinary income
Extraordinary income
Subsidy income
Total extraordinary income
Income before income taxes

32

54

15,204,965
15,204,965

Total operating revenue

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)
33rd Fiscal Period(Jan. 1, 2018 - Jun. 30, 2018)

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

231,653,198

231,653,198

Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period－－

231,653,198

231,653,198

284,356

284,356

Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period－－

284,356

284,356

6,681,774

6,701,131(6,666,829)(6,687,135)

6,686,186

6,760,892

19,35773,757

6,701,131

6,774,889

6,966,131

6,985,488

Dividends from surplus(6,666,829)(6,687,135)

Net income

6,686,186

6,760,892

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

19,35773,757

Balance at end of current period

6,985,488

7,059,245

Total unitholders' equity
Balance at the beginning of current period
Changes of items during the period

238,619,329

238,638,686

Dividends from surplus(6,666,829)(6,687,135)

Net income

6,686,186

6,760,892

Total changes of items during the period

19,35773,757

Balance at end of current period

238,638,686

238,712,444

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

238,619,329

238,638,686

Dividends from surplus(6,666,829)(6,687,135)

Net income

6,686,186

6,760,892

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

19,35773,757

238,638,686

238,712,444

33
55

Financial Statements(4) Statements of Cash Distributions
33rd Fiscal Period(Jan. 1, 2018 - Jun. 30, 2018)
I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Retained earnings carried forward

Method for calculating distribution amount34

56

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

6,701,131,937 yen
6,687,135,000 yen(7,245 yen)
13,996,937 yen

6,774,889,480 yen
6,761,898,000 yen(7,326 yen)
12,991,480 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,687,135,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,761,898,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)
33rd Fiscal Period(Jan. 1, 2018 - Jun. 30, 2018)

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

6,686,791

6,761,497

1,943,257
13,621

1,943,695
11,78814,121

7,339

(173)
812,391(177)
794,974

231,440
5,334

199,966

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Interest expenses(271,775)
21,264

Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other

9,665
17,859(122,986)
51,931

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Other, net

65,047
14,554(17,795)

SubtotalInterest income received
Interest expenses paid

9,367,419

10,024,908

173

177
(795,023)(818,073)(606)

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(605)

8,548,913

9,229,457(262,539)(957,456)(277,575)(443,245)
367,873(194,620)

10,200,000

10,000,000(8,100,000)(537,894)(49,257)(49,257)

Payments of lease and guarantee deposits(605,044)
519,715

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(94,649)
93,864491,935(1,429,952)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable(568,198)(8,308,000)
2,971,905

Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds－(2,000,000)(5,000,000)

Redemption of investment corporation bonds
Dividends paid

(6,665,677)(6,685,943)

317,1881,875,315

32,864,364

33,181,553(6,801,772)

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

227,365(28,668)*1

33,181,553(6,785,943)*1

35,056,869

35
57

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

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

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

4. Scope of Cash and Cash
Equivalents in the Statements ofCash Flows

5. Other Significant Items
Fundamental to the Preparation of
Financial Statements

3658(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:  Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years basedon the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR uses
the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses related
to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the purchase cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. There were no taxes on property and equipment capitalized
for the fiscal periods ended June 30, 2018 and December 31, 2018.
Cash and cash equivalents in the Statements of Cash Flows include the following items(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the balance
sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately presented in the balance sheets for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
Revenues and expenses in the Statements of Income and Retained Earnings do not include consumption taxes.

Japan Prime Realty Investment Corporation(Notes to Changes in the Presentation)
With regard to Insurance income, which was included in Other under Non-operating income in the Statements of Income and Retained
Earnings for the 33rd fiscal period ended June 2018, JPR has presented it separately for the 34th period ended December 2018 becauseof the materiality of the amount being increased. To reflect this change in the presentation method, the financial statements for the 33rd
fiscal period have been reclassified.
As a result, the 10,665 thousand yen included in Other under Non-operating income in the Statements of Income and Retained Earnings
for the 33rd fiscal period was reclassified into8,663 thousand yen as Insurance income and 2,001 thousand yen as Other.

(Notes to Accounting Standards Not Yet Adopted)
・Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 issued by the Accounting Standards Board of Japan (ASBJ)
on March 30, 2018)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 issued by ASBJ on March
30, 2018)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed acomprehensive accounting standard for revenue recognition, and issued it as Revenue from Contracts with Customers (IFRS 15
issued by IASB and Topic 606 issued by FASB) in May 2014. The IFRS 15 is applicable for accounting periods beginning on
January 1, 2018 and thereafter, and the Topic 606 is applicable for accounting periods beginning after December 15, 2017. In
accordance with this, the ASBJ has developed a comprehensive accounting standard for revenue recognition and issued it together
with its implementation guidance.
In developing the accounting standard for revenue recognition, the ASBJ made it a basic policy to adopt the basic principles of the
IFRS 15 as a starting point. By doing so, the ASBJ established the accounting standard from the viewpoint of comparability, which
is a benefit for securing consistency with the IFRS 15, between financial statements based on the Japanese GAAP and those basedon other accounting standards. Alternative treatments were also added, to the extent that they do not harm the comparability, in cases
where there are items to be considered in the actual practices conducted in Japan to date.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard and Implementation Guidance from the beginning of the fiscal period ending December 31,
2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Revenue Recognition is being assessed at present.

(Notes to Balance Sheets)
1. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.
(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)

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

End of 34th Fiscal Period(as of December 31, 2018)
24,000,000

24,000,000－－

24,000,000

24,000,000*2 Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)

End of 34th Fiscal Period(as of December 31, 2018)
50,00050,00037
59

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)
33rd Fiscal Period(January 1, 2018 – June 30, 2018)

34th Fiscal Period(July 1, 2018 – December 31, 2018)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents
Common charges
Parking fees
Advertising fees
Antenna usage fees
Other
Subtotal
Other rental revenues
Incidental rent income
Time-based parking fees
Cancellation charges
Income equivalent to expenses for restoration
to original condition

10,725,048
1,630,000
1,618,829
269,424
74,76323,022
39,621

11,029,283
1,679,499
1,600,954
272,892
76,205
24,15740,594

14,380,710

14,723,589

673,387
7,792
14,154

801,631
8,691
16,141

101,309

77,982

27,611

24,712

Subtotal

824,255

929,160

Total rent revenue-real estate

15,204,965

15,652,749

586,654748,568
2,217,829
24,721
473,717289,577
567,860
1,943,257
262,319594,309891,772
2,210,849
24,862569,947
279,410568,840
1,943,695
227,603

7,114,506

7,311,291

8,090,459

8,341,458

Other miscellaneous income

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 for Rent Business(A-B)(Notes to Statements of Changes in Unitholders’ Equity)
Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

6038

33rd Fiscal Period(January 1, 2018 - June 30, 2018)

34th Fiscal Period(July 1, 2018 - December 31, 2018)

5,000,000 units

5,000,000 units

923,000 units

923,000 units

Japan Prime Realty Investment Corporation(Notes to Statements of Cash Flows)*1. Reconciliation of the Amounts of the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows with theAmounts of the Corresponding Accounts on the Balance Sheets(Thousands of yen)
33rd Fiscal Period(January 1, 2018 - June 30, 2018)34th Fiscal Period(July 1, 2018 - December 31, 2018)

Cash and deposits

21,115,284

22,784,298

Cash and deposits in trust

12,066,268

12,272,570

Cash and cash equivalents

33,181,553

35,056,869(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)

33rd Fiscal Period(January 1, 2018 - June 30, 2018)

34th Fiscal Period(July 1, 2018 - December 31, 2018)

Due within one year

6,585,367

6,837,432

Due after one year

14,746,723

13,190,082

Total

21,332,090

20,027,514(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of short-term
funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but the liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby the financial division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
The fair value of financial instruments, aside from values based on market price, include values based on reasonable calculations
when there is no market price. Certain assumptions are used in calculating those values and there may be cases where the values
will vary when different assumptions are used.

39
61

Financial Statements

2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of June 30, 2018 of financial instruments, and the difference between theseamounts. Please note that the following table does not include those for which discerning of fair value is recognized to be extremely
difficult (please refer to Note 3).
(Thousands of yen)

Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

21,115,284

21,115,284－(2)

Cash and deposits in trust

12,066,268

12,066,268－(3)

Current portion of long-term loans payable(17,200,000)(17,334,944)

134,944(4)

Current portion of investment corporation bonds(2,000,000)(2,008,000)

8,000

(5)

Investment corporation bonds(25,500,000)(27,003,898)

1,503,898(6)

Long-term loans payable(136,420,000)(137,943,159)

1,523,159

The following are the carrying values and fair values as of December 31, 2018 of financial instruments, and the difference between
these amounts. Please note that the following table does not include those for which discerning of fair value is recognized to be
extremely difficult (please refer to Note 3)(Thousands of yen)

Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

22,784,298

22,784,298－(2)

Cash and deposits in trust

12,272,570

12,272,570－(3)

Current portion of long-term loans payable(17,100,000)(17,205,974)

105,974(4)

Current portion of investment corporation bonds(4,000,000)(4,019,933)

19,933(5)

Investment corporation bonds(21,500,000)(23,001,145)

1,501,145(6)

Long-term loans payable(138,420,000)(140,361,266)

1,941,266(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the fair value is approximately the same as the carrying value and is thus stated at thatcarrying value.
(3) Current portion of long-term loans payable, and (6) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount of principal and interests
are discounted by the rate assumed as being applicable in the event of a new drawdown whose term is corresponding to the remaining loan term.
(4) Current portion of investment corporation bonds, and (5) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are measured based on market price and those with no market price are calculated inaccordance with (3) and (6) above.
(Note 3) Financial instruments for which discerning of fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since it is difficult
to estimate the actual lease term. The following is the carrying value of tenant leasehold and security deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
Category

6240

End of 33rd Fiscal Period(as of June 30, 2018)

End of 34th Fiscal Period(as of December 31, 2018)

Tenant leasehold and security deposits

7,938,170

7,937,385

Tenant leasehold and security deposits in trust

12,911,767

13,204,713

Japan Prime Realty Investment Corporation(Note 4) Scheduled redemption of monetary claims to be due subsequent to the 33rd fiscal period end (June 30, 2018)(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

21,115,284

－

－

－

－

－

Cash and deposits in trust

12,066,268

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

Scheduled redemption of monetary claims to be due subsequent to the 34th fiscal period end (December 31, 2018)(Thousands of yen)

(Note 5)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Cash and deposits

22,784,298

－

－

－

－

－

Cash and deposits in trust

12,272,570

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of investment corporation bonds and long-term loans payable scheduled to be due subsequent to the 33rd fiscal period end(June 30, 2018)(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

2,000,000

4,000,000－－

2,000,000

19,500,000

Long-term loans payable

17,200,000

18,000,000

20,820,000

20,500,000

15,000,000

62,100,000Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of investment corporation bonds and long-term loans payable scheduled to be due subsequent to the 34th fiscal period end(December 31, 2018)(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

4,000,000－－－

2,000,000

19,500,000

Long-term loans payable

17,100,000

21,000,000

19,820,000

18,500,000

18,000,000

61,100,000Due after FourYears throughFive Years

Due after Five
Years

(Securities)
33rd fiscal period (as of June 30, 2018)
Not applicable
34th fiscal period (as of December 31, 2018)
Not applicable(Derivative Transactions)33rd fiscal period (as of June 30, 2018)
Not applicable as JPR entered into no derivative transactions
34th fiscal period (as of December 31, 2018)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
33rd fiscal period (as of June 30, 2018)
Not applicable as JPR does not have any retirement benefit plans
34th fiscal period (as of December 31, 2018)
Not applicable as JPR does not have any retirement benefit plans

4163

Financial Statements(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



33rd Fiscal Period(January 1, 2018 - June 30, 2018)

Effective statutory tax rate
(Adjustment)
Deductible cash distributions

31.51%

(31.74%)(31.51%)

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

33rd fiscal period (January 1, 2018 – June 30, 2018)
Not applicable as JPR does not have any affiliated companies
34th fiscal period (July 1, 2018 – December 31, 2018)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
33rd fiscal period (January 1, 2018 – June 30, 2018)
Not applicable
34th fiscal period (July 1, 2018 – December 31, 2018)
Not applicable
2. Subsidiaries
33rd fiscal period (January 1, 2018 – June 30, 2018)
Not applicable
34th fiscal period (July 1, 2018 – December 31, 2018)
Not applicable
3. Sister Companies
33rd fiscal period (January 1, 2018 – June 30, 2018)
Not applicable
34th fiscal period (July 1, 2018 – December 31, 2018)
Not applicable
4. Directors and Major Individual Unitholders
33rd fiscal period (January 1, 2018 – June 30, 2018)
Not applicable
34th fiscal period (July 1, 2018 – December 31, 2018)
Not applicable(Asset Retirement Obligations)33rd fiscal period (January 1, 2018 – June 30, 2018)
Not applicable
34th fiscal period (July 1, 2018 – December 31, 2018)
Not applicable42

31.74%

Other(Equity Method Income and Retained Earnings)

64

34th Fiscal Period(July 1, 2018 – December 31, 2018)

Japan Prime Realty Investment Corporation(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rental business.
[Related Information]
33rd fiscal period (January 1, 2018 – June 30, 2018)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) 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.
34th fiscal period (July 1, 2018 – December 31, 2018)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) 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 the Statementsof Income and Retained Earnings.

43
65

Financial Statements(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities) and retail properties and complex properties for leasing in Tokyo and otherregions. The following is the carrying value on the balance sheets, amount of increase (decrease) during the period and fair value ofthese investment and rental properties.
(Thousands of yen)33rd Fiscal Period(January 1, 2018 - June 30, 2018)


Carrying Value on the Balance Sheets
Balance at Beginning of Period

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

34th Fiscal Period(July 1, 2018 - December 31, 2018)

Fair Value at End of Period

412,586,234

411,794,962(791,271)
411,794,962
484,291,000(830,355)
410,964,607
493,764,000(Note 1) The carrying value on the balance sheets is the purchase cost less accumulated depreciation.
(Note 2) For the 33rd fiscal period, the amount of decrease is primarily attributable to depreciation (1,943,257 thousand yen). For the 34th fiscal period, the amount ofdecrease is primarily attributable to depreciation (1,943,695 thousand yen).
(Note 3) The fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 33rd and 34th fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)


33rd Fiscal Period(January 1, 2018 - June 30, 2018)

34th Fiscal Period(July 1, 2018 - December 31, 2018)258,546 yen

258,626 yen

7,243 yen

7,324 yen

Total net assets per unit
Net income per unit

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

44

66

33rd Fiscal Period(January 1, 2018 - June 30, 2018)
6,686,186

34th Fiscal Period(July 1, 2018 - December 31, 2018)
6,760,892－
6,686,186－
6,760,892

923,000 units

923,000 units

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

Asset Type

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

Accumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
July 1, 2018
the Period
the Period
during the2018
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Net Balance as ofDecember 31, 2018
(thousands of yen)

-

-

-

-

-

-

-

58,129,064
56,009413,215
1,812

2,729
－

58,539,550
57,822

17,455,409
23,681

824,951
1,582

41,084,140
34,140766,233

19,024－785,258

499,698

20,369285,560

92,427

11,496－

103,924

55,707

4,867

48,217

106,890,048－－

106,890,048－－

106,890,048

11,076933

11,076

933

－

－

933

165,944,860

446,482

13,806

166,377,537

18,034,497

851,770

148,343,040

91,196,238

596,037－

91,792,275

33,416,345

1,057,503

58,375,930

128,416

3,726－

132,143

82,714

2,613

49,428

1,740,193

67,2372,787

1,804,644

1,382,079

23,578422,564

206,505

13,615－

220,120

152,319

8,163

67,801

189,014,043－－

189,014,043－－

189,014,043

842

500

360

982

－

－

982

282,286,239
448,231,100

681,117
1,127,599

3,147
16,953282,964,209
449,341,746

35,033,459
53,067,956

1,091,859
1,943,630

247,930,750
396,273,790

14,689,483－－

14,689,483－－

14,689,483

2,602
14,692,086

－
－

－
－

2,602
14,692,086

1,269
1,269

65
65

1,333
14,690,817

Remarks(Note 1) The “Increase during the Period” is due to construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of construction completion for construction in progress and construction inprogress in trust, and due to asset retirement for buildings and machinery and equipment in trust.

45
67

Financial Statements

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

Balance as ofDecember 31,
2018(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJuly 1, 2018
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Fourteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

2,000,000

2,000,000

－

1.340

Oct. 25, 2018

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

2,000,000－

2,000,000

1.030

Nov. 22, 2019

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

Twenty-third Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2018

3,000,000－

3,000,000

0.550

May 31, 2028

27,500,000

2,000,000

25,500,000

Total

Use

Remarks(Note 2)

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

Investment corporation
bonds

46

68

4,000,000－--

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

2,000,000

Japan Prime Realty Investment Corporation

6) Schedule of Loans Payable

LenderIncrease
Decrease
Balance as of
Balance as ofduringduringDecember 31,
July 1, 2018
Current
Current
2018(thousands
PeriodPeriod(thousandsof yen)(thousands (thousandsof yen)of yen)of yen)Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

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

2,000,000－－

2,000,000

1.027%

Dec. 5, 2019

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.351%

Mar. 30, 2021

Mizuho Bank Ltd.

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Mizuho Bank Ltd.

5,000,000－－

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

Mizuho Bank Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

MUFG Bank, Ltd.

1,000,000－－

1,000,000

1.178%

Aug. 8, 2019

MUFG Bank, Ltd.

1,000,000－－

1,000,000

1.027%

Dec. 5, 2019

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.889%

Jun. 25, 2021

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.873%

Aug. 31, 2023

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

MUFG Bank, Ltd.

2,000,000－－

2,000,000

0.633%

Dec. 13, 2024

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.638%

Aug. 8, 2025

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.600%

Aug. 29, 2025

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.593%

Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

1,000,000－－

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

3,000,000－－

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.351%

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

1.033%

Jun. 27, 2022

Development Bank of Japan, Inc.

2,200,000－

100,000

2,100,000

3.190%(Note 5)Development Bank of Japan, Inc.

820,000－－

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14, 2027

Development Bank of Japan, Inc.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Shinsei Bank, Ltd.

5,000,000－－

5,000,000

1.397%

Apr. 5, 2019

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.076%

Sep. 24, 2020

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

Aozora Bank Ltd.

2,000,000－

2,000,000－

1.146%

Aug. 30, 2018

Aozora Bank Ltd.

2,000,000－－

2,000,000

1.178%

Aug. 8, 2019

Aozora Bank Ltd.

1,000,000－－

1,000,000

1.069%

Sep. 24, 2020

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank Ltd.

－2,000,000－

2,000,000

0.553%

Feb. 25, 2025

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

1.076%

Feb. 4, 2020

Mizuho Trust & Banking Co., Ltd.

4,000,000－－

4,000,000

0.309%

Mar. 30, 2020

Shinkin Central Bank

3,000,000－

3,000,000－

0.689%

Dec. 5, 2018

Shinkin Central Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

Shinkin Central Bank－

3,000,000－

3,000,000

0.663%

Jun. 4, 2027

The Bank of Fukuoka

1,000,000－－

1,000,000

0.911%

Sep. 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

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

3,200,000－－

3,200,000

0.813%

Jun. 21, 2028

The Shinkumi Federation Bank

4,000,000－－

4,000,000

0.404%

Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.388%

Dec. 14, 2021

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

(Note 4)

Unsecured/
Unguaranteed/

4769

Financial Statements

LenderIncrease
Decrease
Balance as of
Balance as ofduringduringDecember 31,
July 1, 2018
Current
Current
2018(thousands
PeriodPeriod(thousandsof yen)(thousands (thousandsof yen)of yen)of yen)Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Long-Term Loans Payable (Note 1)
Taiyo Life Insurance Company

1,000,000－－

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sep. 24, 2024

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.811%

Jun. 5, 2028

Chugoku Bank

1,000,000－

1,000,000－

0.758%

Sep. 25, 2018

Chugoku Bank

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

Chugoku Bank－

1,000,000－

1,000,000

0.661%

Mar. 25, 2026

The Norinchukin Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

ORIX Bank Corporation

2,000,000－－

2,000,000

0.762%

May 27, 2019

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

National Mutual Insurance Federation ofAgricultural Cooperatives

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

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

0.489%

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

0.438%

Sep. 30, 2022

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.816%

Oct. 6, 2023

NTT FINANCE CORPORATION

1,000,000－－

1,000,000

0.408%

May 31, 2023

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

The Daishi Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Daido Life Insurance Company

1,000,000－

1,000,000－

0.710%

Dec. 27, 2018

Daido Life Insurance Company－

1,000,000－

1,000,000

0.316%

Dec. 25, 2023

The Chiba Bank, Ltd.

－

1,000,000－

1,000,000

0.449%

Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000－

1,000,000－

0.710%

Dec. 27, 2018

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

－

1,000,000－

1,000,000

0.299%

Jun. 27, 2023

The Hyakugo Bank, Ltd.

－

1,000,000－

1,000,000

0.582%

Apr. 25, 2025

The Hiroshima Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Sumitomo Mitsui Trust Bank Limited

1,000,000－－

1,000,000

0.691%

Mar. 25, 2026

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

153,620,000

10,000,000

8,100,000

155,520,000

Total(Note 1)

(Note 4)

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

17,100,000

21,000,000

19,820,000

Unsecured/
Unguaranteed/Due after Four Years
through Five Years(thousands of yen)

18,500,000

18,000,000(Note 2)The interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.

(Note 3)Long-term loans payable are fixed-rate loans payable.

(Note 4)

Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption(Note 5)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 millionof investment corporation bonds, etc.
yen will be made on the maturity date of June 27, 2019.

7048

Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report49
71Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
33rd Fiscal Period(January 1, 2018 – June 30, 2018)

34th Fiscal Period(July 1, 2018 – December 31, 2018)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
33rd fiscal period (January 1, 2018 – June 30, 2018)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

Transactions－

Borrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)－
22,136

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

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

34th fiscal period (July 1, 2018 – December 31, 2018)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

Transactions－

Borrowing of
long-term loans
payableInterest
expenses(Note) Transaction terms are determined based on prevailing market conditions.

50

72

Transaction
Amount(thousands ofyen)－
22,503

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
489

Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of December 31, 2018)
Market capitalization: ¥384.8 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 34th Fiscal Period: ¥417,000

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

24,000460,000

20,000400,000

16,000340,000

12,000280,000

8,000

220,000

4,000

160,000

0Jun. 14 Dec. 31
2002 2002

Dec. 312003

Dec. 312004

Dec. 312005

Dec. 312006

Dec. 312007

Dec. 312008

Dec. 312009

Dec. 312010

Dec. 312011

Dec. 312012

Dec. 312013

Dec. 312014

Dec. 312015

Dec. 312016

Dec. 312017

100,000
Dec. 312018(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of December 31, 2018)
Other domestic
corporations

Foreign investors

460

199

(4.16%)(1.80%)

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.85%)

11,050205

Individuals

Foreign investors

33,301 units

250,458 units(3.60%)(27.13%)

Number ofinvestment units
by investor type

Other domestic
corporations

81,022 units
Individuals

923,000
units(8.77%)

Financial institutions(including securities firms)

558,219 units

10,186(60.47%)(92.18%)(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

73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 to investors and help them gain a better
understanding of JPR.
Point 1
Digest of Financial
Results

Point 2

Point 3

Initiatives on Sustainability

Property Overview

Point 2

Point 1

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

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

At least once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant to JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

Contact by Phone

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

Listing

Tokyo Stock Exchange (Securities Code: 8955)

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