Forty-First Fiscal Period Semi-Annual Report
January 1, 2022 – June 30, 2022

Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation

Message to Our Unitholders
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere gratitude forthe continued loyal patronage you have extended to us.
Having settled the 41st fiscal period (January 1, 2022 – June 30, 2022), we would like to report on theperformance results.
Since October last year when the state of emergency was lifted, a change in the trend, such as the increasein the number of inquiries for new leasing, has been seen in the office property leasing market, and theincrease in vacancy rates in central Tokyo which had continued since 2020 has also stopped temporarily
and remains generally flat.
Under such circumstances, JPR achieved operational results that exceeded the initial assumption, andthe average occupancy rate for the 41st fiscal period was 97.8% (+0.9% from the previous fiscal period
and +0.3% compared with the forecast). In addition, JPR realized a record-high distribution per unit of
7,800 yen (+250 yen from the previous fiscal period and +50 yen compared with the forecast).
Going forward, while continuously paying close attention to the impact of COVID-19 and the situationin Ukraine, we will flexibly respond to changes in social conditions and endeavor achieving appropriate
asset management to grasp new opportunities for growth.
We ask you, our unitholders, to extend us continued support of our operations.

Operating Results

Operating revenue(million yen)

40th Period
ended
Dec. 2021
Results

41st Period
ended
Jun. 2022
Results

18,25318,357

ChangeChangeRate ofchange

+104

+0.6%

Operating income

8,626

9,343

+716

+8.3%

Ordinary income

7,893

8,607

+714

+9.1%

(million yen)(million yen)

TOPIC 1
Operating revenue includes gain on sale of properties(1,870 million yen for the 40th fiscal period and 1,338
million yen for the 41st fiscal period).

TOPIC 2
Operating income increased significantly due to therecovery of occupancy rates, property replacements
implemented after the previous fiscal period, etc

TOPIC 3

Net income

7,892

8,607

+714

+9.1%

Distribution per unit

7,550

7,800

+250

+3.3%

(million yen)

(yen)

Distribution per unit came to 7,800 yen, the highest
amount ever. Part of the gain on sale that wasrecorded in the 41st fiscal period has been internallyreserved for the purpose of stable management andcash distributions in the future.

(Note 1) Forecast distribution is the forecast figures announced upon the announcement of financial results for the fiscal period ended June 2022 (41st fiscal period) on August 16,
2022. Moreover, the forecasts should not be construed as a guarantee of the amount of distribution per unit.
(Note 2) “ Tokyo” represents Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa andSaitama Prefectures), and “Other Cities” represent all other areas in Japan (the same applies throughout this report).
(Note 3) Retail, etc. refers to retail properties and hotels (the same applies throughout this report).

1

Japan Prime Realty Investment Corporation

41st Fiscal Period Topics
We acquired additional ownership interest in Rise Arena Bldg. and GRAND FRONT OSAKA last year,
and Tokyo Tatemono Higashi Shibuya Bldg. in January this year. The funds for these acquisitions wereraised through the 9th public offering in January this year.

Tokyo Tatemono Higashi Shibuya Bldg. (property acquired in the 41st fiscal period)
It is located along Meiji-dori Avenue in the Shibuya area where redevelopment is in progress, and enjoys highprominence. In addition, it is a high-spec office building featuring a high grade and an affluent ambiance as well as
having a public space and an indoor drive-in parking lot for 41 vehicles.

Acquisition date

Appraisal value

January 18, 2022

Acquisition price

11,300 million yen12,100 million yen

Total leasable floor space
NOI yield

7,821.01 m2



4.4%



Yield after depreciation

3.8%



Occupancy rate (as of acquisition date)Seller95.2%

Tokyo TatemonoAcquisition of Blue-Chip Properties and Strategic Asset Replacement
As part of the strategic asset replacement, we sold “Tokyo Tatemono Honmachi Bldg.” in the previous fiscal
period. In addition, we sold part of the ownership interest in “JPR Umeda Loft Bldg.” in the current fiscal period
as in the previous fiscal period.
Newly acquired asset 39.9 billion yen

Asset (to be) sold

Assetreplacement

Rise Arena Bldg.
October 2021

GRAND FRONT OSAKA
December 2021

Tokyo Tatemono Honmachi
JPR Umeda Loft Bldg.
Dec. 2021: Equivalent to 40% Bldg. December 2021
Jun. 2022: Equivalent to 30%
Dec. 2022: Equivalent to 30%

Tokyo Tatemono Higashi
Shibuya Bldg.
January 2022

Overview of 9th Public Offering
Issuance resolution date
Number of new units issued
Total purchase price

January 4, 2022

38,928 units
13.8 billion yen

After issuance of new investment units[Number of units outstanding][Unitholders' capital]

2958,250 units
247.8 billion yen

997,178 units
261.7 billion yen

Japan Prime Realty Investment Corporation

Initiatives on Sustainability
Materialities
Materialities

2030 Target

Portfolio greening· Certification acquisition rate of 80% or more (4-star/"A" rating or higher)

Action on climate change· Achieve net zero CO2 emissions by 2050
· Reduce CO2 emissions intensity by 30% (compared with the 2017 level)· Reduce water use intensity by 10% (compared with the 2017 level)· Build an industry-leading, strong structure to manage climate change risks· Expand green lease agreements

Improving tenant satisfaction with safety,
security and comfort
Creating a rewarding workplaceenvironment

Strengthening corporate governance· Improve tenant satisfaction in comprehensive aspects including safety, security and comfort· Foster professionals who support corporate growth· Enhance operational efficiency and improve operational processes· Secure physical and mental health and achieve work-life balance· Provide an working environment where each person can fully exert his or her abilities· Ensure information disclosure at a level among the highest in the industry· Proactively discuss with investors· Promote discussions with individual investors· Obtain ESG assessments that are among the highest in the industry· Maintain a strong corporate governance system· Secure a risk management structure that is among the strongest in the industry

Recognition by External Bodies and Initiatives
GRESB Real Estate Assessment

CDP Climate Change Program

5 Stars

B

Signing of the Principles for
Responsible Investment (PRI)

Support for TCFD

MSCI ESG Rating (Note)

Signing of the Principles for Financial
Action for the 21st Century(Note) THE USE BY JPR OF ANY MSCI ESG RESEARCH LLC OR ITS RESEARCH (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT MSCI LOGOSA SPONDORS, ENDORAGES, OR PROMOTION OF JPR BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVISIONERS, AND ARE Provided `ASISRESSED AND WITHOUT WAR MSCI NAMES AND LOGOS ARE HONES OR SERVICE MARKS OF MSCI.

3

Japan Prime Realty Investment Corporation

Initiatives on Environmental Friendliness■ Reduction of CO2 Emissions
JPR has set 30% reduction of CO2 emissions (compared with the 2017 level; on a intensity basis) as the target for2030. We are steadily implementing measures to reduce CO2, and aim to achieve the target at an early stage. In
addition, specific strategies for the target of achieving net zero CO2 emissions by 2050 are scheduled to be formulated
in the future.

100.0

100.0
91.3

92.2
81.7

79.9

75.0

70.0

50.0

25.0

Switching to LED
lighting, improving
operations

2017

2018

2019

2020

Lowering emissions
coefficients

Introducing
renewable energy

2021

2030

■ Status of Acquisition of Environmental Certifications
JPR expects its target of “80% or higher for the ratio of properties having acquired environmental certifications(environmental certification coverage ratio) by 2030” to be achieved this year ahead of schedule. We plan to revise
the target to a higher standard of "environmental certification coverage ratio of 80% or higher, with 4-star/A ratingor higher" in the current fiscal period, and also improve the quality of environmental performance.
Assessment in CASBEE forReal Estate (Note 1)

(%)

90

S ★★★★★

Target for 2030: 80%

80

71.4%
70

65.5%
53.4%

54.4%

50
40
30
20

B+★★★

Jun. 2019

Dec. 2019

Jun. 2020

Dec. 2020

Jun. 2021

Dec. 2021

Jun. 2022

Dec. 2022(planned)

16 properties
14 properties
1 property

DBJ Green Building Certification (Note 2)
★★★★★
★★★★
★★★

New target
Environmental certification coverage ratio of
80% or higher, with 4-star/A rating or higher
59.6% (end of June 2022)

34.0%

Dec. 2018

A ★★★★

Previous target
Environmental certification coverage
ratio of 80% or higher
77.6% (end of June 2022)

60.1%

60

74.3%

77.6%

1 property
4 properties
8 properties

BELS Certification (Note 3)(Period)★★★
★★

1 property
1 property(Note 1) CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental performance ofbuildings. Efforts to develop and popularize the system in Japan are being made under the leadership of the Ministry of Land, Infrastructure, Transport and Tourism.
(Note 2) 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 the scoringmodel originally developed by Development Bank of Japan Inc (DBJ). Its purpose is to promote properties that are environmentally friendly, equipped to mitigate disasterand prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
(Note 3) BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performance labeling system created for the purpose that a third-party organization
accurately conducts the evaluation and indication of energy efficiency performance of non-residential buildings in accordance with the Assessment Guidelines on Energy
Efficiency Performance of Nonresidential Buildings (2013) established by the Ministry of Land, Infrastructure, Transport and Tourism.

4Japan Prime Realty Investment Corporation

Initiatives on Behalf of the Society■■ Periodic Tenant Satisfaction (CS) Survey and Improvement of Issues
We recognize that tenants are important stakeholders for JPR and Tokyo Realty Investment Management, Inc.
(TRIM), its asset management company. Since a good relationship with tenants contributes to the maintenance ofhigh occupancy rates and the stability of revenue, we have been conducting satisfaction surveys since 2005 to enable
comfortable use. As for the content of the survey, more than 20 items such as building facilities and service aspects
were surveyed, and the results are shared with property managers (PMs) and local building managers to improve
services, and used as one of the PM evaluations.
The surveys are consigned to a third-party think tank in order to ensure fair evaluation.

■■ Tenant Satisfaction (CS) Survey(cases)75
60

Number of buildings surveyed (left axis)
3.16

3.24

3.29

3.27

3.33

Overall satisfaction (right axis)
3.29

3.43

3.39

3.48

3.49

3.50

3.51

3.39

3.44

3.52

3.47

31

32

32

31

37

36

32

38

37

41

39

40

40

45

42

40

39

2.0
1.0

15
0

4.0
3.0

45
30

3.35

2005

2006

2007

2008

Overview of 2022 Tenant
Satisfaction (CS) Survey

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2021

2022

0

[Overall satisfaction] Average value with 4 points being the highest[Survey period]
June 2022[Survey scope]
39 buildings, 444 tenants[Questionnaire item] 	Management and administration, responses to tenants, crime prevention and safety, emergency
responses and environmental preservation, etc.

(Note) In 2020, the survey was not conducted due to the COVID-19 pandemic.

Initiatives on Behalf of GovernanceIn the belief that it is essential to secure sound and efficient operations of JPR in order to realize its continuous
growth, consistent efforts have been made to reinforce and sustain corporate governance of JPR and TRIM, the asset
management company■■ Decision-Making Based on Stringent Processes·· At TRIM, decisions on matters such as property acquisitions and operations are
made based on stringent examination from a wide perspective at meetings of thevarious committees.
·· In particular, the adequacy and rationality of transactions of material transaction
conducted with the sponsors, etc. are screened and verified by the Compliance
Committee and require the unanimous approval of all members, in principle.
·· An outside attorney has been appointed as a special member of the Compliance
Committee.

Members of the Compliance Committee of TRIM

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 relatedpartiesCompliance Committee
JPR’s Board of Directors

▼
▼
▼
▼

▼

Final decision on acquisition Investment Subcommittee

President and CEO
General Manager of Corporate Planning /Administration Division

General Manager of Investment
Management Division

General Manager of Financial Division

Head of Compliance OfficeSpecial member (outside attorney)

5

Decision-making on
acquisition over certain
amountConclude agreement▼

TRIM’s Board of Directors▼

Acquisition

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

Asset Management ReportJapan Prime Realty Investment Corporation

1. Overview
1. OverviewofofAsset
AssetManagement
Management(1) (1)
Trendsin in
OperatingResults
Data
TrendsOperatingResultsand
andOther
OtherManagement
Management Data

2.

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Financial Position

Operating Performance

Fiscal Period

Unit

37th Fiscal
Period(Jan. 1, 2020 Jun. 30, 2020)
16,36338th Fiscal
Period(Jul. 1, 2020 Dec. 31, 2020)
17,12939th Fiscal
Period(Jan. 1, 2021 Jun. 30, 2021)
17,30540th Fiscal
Period(Jul. 1, 2021 Dec. 31, 2021)
18,253

41st Fiscal
Period(Jan. 1, 2022 Jun. 30, 2022)
18,357

Operating Revenue
Rent revenue – real estate

Million yen

Gain on sale of real estate

Million yen

16,363–

16,714414

16,521
783

16,382
1,870

17,019
1,338

Million yen

8,350

8,596

8,515

9,626

9,014

Million yen

7,436

7,611

7,499

7,731

7,946

Million yen

8,013

8,533

8,789

8,626

9,343

Million yen

7,277
7,276

7,840
7,839

8,121
8,120

7,893
7,892

8,607
8,607

%

473,186(+4.3)

484,573(+2.4)

484,323(-0.1)

495,615(+2.3)

507,005(+2.3)

Million yen

187,020

196,520

196,500

206,900

202,900

Million yen

255,838

256,399

257,093257,649

272,912(+6.9)(+0.2)(+0.3)(+0.2)(+5.9)

Million yen

247,860

247,860

247,860

247,860

261,751

Million yen

7,277

7,426

7,337

7,234

7,777

%

100.0

94.7

90.3

91.6

90.3

Units
Yen

958,250
266,984

958,250
267,570958,250
268,295

958,250
268,875

997,178
273,684

Yen

7,595

7,750

7,657

7,550

7,800

Yen

7,595

7,750

7,657

7,550

7,800

Yen

–

–

–

–

–

%

1.6

1.6

1.7

1.6

1.7

%

3.2

3.2

3.4

3.2

3.5

%

2.9

3.1

3.2

3.1

3.2

%

5.9

6.1

6.4

6.1

6.5

239,269

255,838

256,399

257,093257,649

%

54.1

52.9

53.1

52.0

53.8

pt

(+1.3)(-1.2)(+0.2)(-1.1)(+1.8)

%

39.5

40.6

40.6

41.7

40.0

Times

14.1

14.6

14.6

13.8

14.1

Million yen

10,015

10,208

10,132

9,708

10,026

Million yen

710
10,954697
11,188694
11,121

701
10,779710
11,118

%

4.8

4.7

4.8

4.3

4.5

Million yen

9,574

9,534

9,751

9,177

9,737

%

4.2

4.0

4.2

3.7

4.0

Operating Expenses
Expenses related to rent business
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 (Note 12)
Occupancy Rate

Million yen

Million yen
Million yen%

Million yen

Million yen

65

66

65

66

67

851

857

804

1,134

1,171

m2

499,269.77

501,162.78

496,876.92

500,628.05

502,889.81

%

99.7

99.3

98.1

97.3

97.5

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

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

61

Asset Management ReportJapan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (37th fiscal period: ¥457.14 billion, 38th fiscal period: ¥468.54 billion, 39th fiscal period: ¥467.52 billion,
40th fiscal period: ¥494.23 billion and 41st fiscal period: ¥496.18 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: 37th fiscal period: 182 days, 38th fiscal period: 184 days,
39th fiscal period: 181 days, 40th fiscal period: 184 days and 41st fiscal period: 181 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).

FiscalPeriodAssetManagement
Management(2) (2)
41st41st
FiscalPeriodAsset

3.

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 997,178 units as of the end of the 41st fiscal period (June 30, 2022). JPR has assigned the asset management of its portfolio
to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize unitholder
value by efficiently managing the portfolio primarily comprising office properties and retail properties.
2) Management Environment
During the 41st fiscal period, the Japanese economy showed a pickup as activity restrictions under the spread of COVID-19 were
relaxed, among other factors. On the demand side, consumer sentiment improved to show a trend for recovery in consumer spending.
Capital investment and housing investment were also on a strong note. In terms of supply, meanwhile, Japan was affected by partial
restrictions on production activities imposed in China and continuing global shortage of semiconductors, and saw production
stagnated in some areas. Corporate earnings demonstrated recovery in the non-manufacturing sector, following such withinmanufacturing industries. However, partly affected by the Ukraine situation since the end of February and exchange rate
fluctuations, general prices have risen in and outside Japan against the backdrop of rising commodity prices, causing concerns
about how the economy and corporate earnings will be impacted. In addition, close attention must be continuously paid to theimpact of the spread of COVID-19 infections.
The Office Property Leasing Market
In the office property leasing market, the vacancy rate in Central Tokyo has turned to a leveling trend after continuously showing
an upward trend, partly due to the impact of COVID-19 softening, and the decrease in average rent has been decelerating. Similar
trends are observed in Greater Tokyo and other cities.
The Retail Property Leasing Market
At urban retail properties which JPR targets for investment, sales recovery is underway with an increase in the number of customers
visiting retail stores, given the focused anti-infection measures against COVID-19 issued by the government for Tokyo and several
other prefectures lifted in March.
The For-Sale Real Estate Market
In the for-sale real estate market, active transactions continued to take place against the backdrop of weaker yen and low interest
rates, etc. For office properties that are major targets of JPR for investment, blue-chip properties are in short supply while investors
both in and outside Japan still show a strong appetite to acquire them. Thus, with low-yield transactions continuing to prevail, theacquisition environment remains harsh. Accordingly, investors continue to look for ways to effectively acquire properties, such asby diversifying the target assets for investment and conducting asset replacement. As for urban retail properties and hotels forwhich investors have shown a cautious attitude due to the impact of COVID-19, transactions with an eye to the post-pandemic era
are visibly taking place.
3) Portfolio Management Status
Acquisition of New Properties and Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus office properties in regional cities andretail properties, etc., with the primary aim of improving the quality of the portfolio and achieving stable growth of earnings while
giving attention to balancing the diversification of the portfolio, both in terms of location and asset type.
During the 41st fiscal period, JPR acquired Tokyo Tatemono Higashi Shibuya Bldg. (acquisition price: 11,300 million yen) in
January 2022. Moreover, in June 2022, JPR conducted the second part of the sale of JPR Umeda Loft Bldg. (30% ownership, saleprice of the relevant ownership interest: 5,250 million yen). As a result of these transactions, the balance of JPR’s assets undermanagement totaled 67 properties, or 492.2 billion yen on an acquisition price basis as of the end of June 2022, with the total
leasable floor space standing at 502,889 m2 and the number of tenants at 1,171.

2

7

Asset Management ReportJapan Prime Realty Investment Corporation

Operational Management of Portfolio
In the office property leasing market in the 41st fiscal period, the upward trend in the vacancy rate and the downward trend in rent
levels appeared to take a temporary pause, given the impact of COVID-19 being tamed. Nevertheless, the situation demands thatclose attention be continuously paid. Under such circumstances, JPR endeavored to attract new tenants through strategic leasing
activities and enhance the satisfaction of existing tenants by maintaining close cooperation with property management companies
and brokers, with an aim to secure stable earnings across the entire portfolio as well as its occupancy rate. As a result of these
efforts, the occupancy rate at the end of the 41st fiscal period was kept at a high level, as it rose 0.2 points period-on-period to
97.5%.
In terms of property management, JPR continued to proactively implement value enhancement works based on tenant needs, on
the ground of its brand concept A/3S (Amenity/Service, Safety and Save Energy) that has been established with an aim to create
spaces where the workers feel satisfaction. As an endeavor to reduce CO2 emissions, JPR conducted renovation of air-conditioning
systems and replacement of lighting equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple
properties.
Moreover, as its initiatives on environmental issues, JPR has continuously obtained environmental certifications. As of June 30,
2022, JPR has acquired DBJ Green Building Certification*1 for 13 properties in total, of which 11 properties have been continuously
certified. JPR has also obtained CASBEE for Building Certification*2 for 31 properties in total (including 3 newly certified
properties), and BELS*3 certification for two of its properties. On top of these certifications JPR acquired, its endeavors on
environmental issues were so acknowledged that it was designated as “Green Star” in the GRESB *4 Real Estate Assessment for
2021, marking the eighth consecutive year of recognition with the highest ranking in the survey. JPR has also been granted thehighest rank of “5 Stars” in the GRESB Rating, which makes relative assessment based on total scores, for three consecutive years.
*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
disasters and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 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 carried out under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.
*3 BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performance labeling system created for the purpose that a third-party
organization accurately conducts the evaluation and indication of energy efficiency performance of non-residential buildings in accordance with the Assessment
Guidelines on Energy Efficiency Performance of Non-residential Buildings (2013) established by the Ministry of Land, Infrastructure, Transport and Tourism.
*4 GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) awareness of real estate companies and funds, as well as
the name of the organization which runs the assessment system. It was founded in 2009 primarily by major European pension fund groups. Of the survey subjects,
GRESB Real Estate Assessment covers real estate companies and funds that are mainly engaged in managing existing properties.

Fund Procurement
In the 41st fiscal period, JPR additionally issued investment units (refer to (3) Additional Offerings, Etc. below) to procure 13.8
billion yen, which was used to fund the acquisition of a new property and repay borrowings.
On top of this, JPR focuses its endeavors on debt financing with an emphasis placed on lengthening debt maturity and diversifying
repayment dates, in an effort to make its financial base more solid and stronger against the backdrop of the favorable fundprocurement environment and low interest rates.
JPR borrowed 18.5 billion yen in the 41st fiscal period to fund the refinancing of interest-bearing debts it repaid during the same
fiscal period. This led to the average maturity of and the average interest on the new interest-bearing debts at 9.2 years and 0.64%,
respectively, in contrast to 5.7 years and 0.55% for the relevant interest-bearing debts before refinancing (excluding short-term
debts).
As of the end of the 41st fiscal period, the balance of interest-bearing debts totaled 202.9 billion yen, with a balance of borrowingsof 165.0 billion yen and a balance of investment corporation bonds of 37.9 billion yen. The ratio of interest-bearing debt to total
assets (Note 1) was 40.0%, long-term and fixed interest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3) was
0.74% and average maturity (Note 4) was 5.0 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 the 41st fiscal period.
Details of Corporate Credit Ratings as of June 30, 2022
Credit Rating Agency
Japan Credit Rating Agency, Ltd. (JCR)

Corporate Credit Rating (Outlook)
AA (Stable)

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

AA- (Stable)

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

A (Stable)(Note 1) Ratio of interest-bearing debts to total assets (LTV): (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

83

Asset Management ReportJapan Prime Realty Investment Corporation(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 41st fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

Additional
Offerings,Etc.
Etc.
(3) (3)
Additional
Offerings,

4.

The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date

Number of Units
Outstanding

Event

Variation

Unitholders' Capital(millions of yen)

Balance

Variation

Remarks

Balance

March 3, 2020

Additional public offering

35,250958,250

16,207

247,860(Note 1)January 18, 2022

Additional public offering

38,100996,350

13,594

261,455(Note 2)February 16, 2022

Third-party allotment

828

997,178295

261,751(Note 3)(Note 1) New investment units were issued through a public offering at 474,810 yen per unit (underwriting price of 459,790 yen per unit) to fund acquisition of new specified
assets and partly repay debts.
(Note 2) New investment units were issued through a public offering at 368,480 yen per unit (underwriting price of 356,824 yen per unit) to fund acquisition of new specified
assets and partly repay debt.
(Note 3) New investment units were issued through a third-party allotment at 356,824 yen per unit to partly repay debt.

Cash
Distributions(4) (4)
Cash
Distributions

5.

With regard to the cash distributions of the 41st fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 40th fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. JPR alsodecided to internally reserve 830 million yen as reserve for reduction entry from the unappropriated retained earnings, in applicationof the Special Provisions for Taxation in Cases of Repurchase of Specified Assets (Article 65-7 of the Act on Special Measures
Concerning Taxation). As a result, the cash distribution per unit came to 7,800 yen for the 41st fiscal period.
(Thousands of yen unless otherwise indicated)
37th Fiscal
Period(Jan. 1, 2020 –Jun. 30, 2020)

38th Fiscal
Period(Jul. 1, 2020 Dec. 31, 2020)

39th Fiscal
Period(Jan. 1, 2021 –Jun. 30, 2021)

40th Fiscal
Period(Jul. 1, 2021 Dec. 31, 2021)

41st Fiscal
Period(Jan. 1, 2022 –Jun. 30, 2022)

7,287,774

7,849,585

8,129,659

7,901,374

8,614,933

9,865

423,148

792,338

666,586

836,945

Total Cash Distributions

7,277,908

7,426,437

7,337,320

7,234,787

7,777,988(Cash Distribution per Unit)(7,595 yen)

(7,750 yen)

(7,657 yen)

(7,550 yen)

(7,800 yen)

Total Cash Distributions from Net Income

7,277,908

7,426,437

7,337,320

7,234,787

7,777,988(Cash distribution from net income per unit)(7,595 yen)

(7,750 yen)

(7,657 yen)

(7,550 yen)

(7,800 yen)

–

–

–

–

–

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

–

–

–

–

–

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

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)Fiscal Period

Unappropriated Retained Earnings at End of Period

BreakdownInternal Reserves

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)49

Asset Management ReportJapan Prime Realty Investment Corporation

FutureManagement
PoliciesandandCritical
CriticalIssues
Issues(5) (5)
FutureManagement
Policies

6.

Looking ahead, the Japanese economy is expected to continue showing a pickup, with domestic demand recovering mainly in consumer
spending and restrictions on supply of semiconductors and other products loosening, among other factors, in light of anticipations fornormalization of socio-economic activities making progress to a certain degree while impact of COVID 19 still lingering. However,attention should be paid to general prices rising globally against the backdrop of the Ukraine situation, etc. and the impacts offluctuations in the financial and capital markets associated with rising interest rates, among other factors. In addition, JPR will continue
to pay close attention to the impact of the COVID-19 infections.
The office property leasing market is anticipated to hit the bottom in a gradually increasing manner, but close attention must be paid to
the impact of the increased supply of office buildings in Central Tokyo anticipated for 2023. It must also be taken into considerationthat electricity charges are increasing in association with the rise in crude oil and natural gas prices. Under these circumstances, JPR isresolved to continue its endeavors to enhance the competitiveness of its owned properties, as it has focused on improving tenantsatisfaction through proactive implementation of value enhancement works and provision of elaborate management services.
In the for-sale real estate market, it has become even more important to discern the growth potential in earnings of respective properties,
while continuously taking into account the impact of the changes in the Japanese economy on the leasing market. Moreover, inconsideration of the current situation in which the low-interest-rate and low-yield environment is maintained in Japan, it is necessary
to firmly keep the attitude of vigorously selective investment for implementing real estate investment that assumes possession ofproperties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on office properties in the Tokyo area, with an aim to improve the quality of its
portfolio and enhance its growth potential and stability over the long term. In the for-sale office property market, the purchase cap
rate and expected cap rate levels still stay low, with properties remaining in short supply. Although close attention must be paid to
the trends in the leasing market going forward, JPR will fully investigate the stability and growth potential of candidate properties
when acquiring them. As for retail properties, etc., JPR will work to invest in strictly selected blue-chip properties that can maintainstable revenues at a certain level in order to complement the stability of earnings of the entire portfolio. In doing so, JPR will haveto be more prudent in investigating, paying close attention to the sales trends, etc. of such properties under the influence of COVID19. JPR will continue its endeavors to acquire new properties under reasonable terms by negotiating prices based on detailed market
studies and property due diligence.
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 and Meiji Yasuda Life
Insurance Company), accurately following market trends and carefully researching investment value, including the future potentialof candidate properties.
Furthermore, JPR will also investigate asset replacement by 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 the 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 in consideration of the current leasing market situations and promote rapid decision making- Conduct strategic value enhancement works with the intent to improve property earnings and increase tenant satisfaction- Reinforce responses to business continuity plans and environmental friendliness that command high social demand3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will control its
LTV in a conservative manner. In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in aneffort to diversify the repayment dates of interest-bearing debts and reduce the repayment amount for each fiscal period, with aneye on reducing refinancing risks that may arise in accordance with future changes in the financial environment. Moreover, JPR
intends to work on fund procurement through issuance of investment corporation bonds as it aims to diversify fund procurementmeans and sources.

10

5

Asset Management ReportJapan Prime Realty Investment Corporation

Information
Disclosure(6) (6)
Information
Disclosure

7.

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(https://www.jpr-reit.co.jp/en/) to provide information including monthly occupancy rates of all properties in the portfolio and historical
data, offer expanded information on sustainability and deliver video presentation on financial results sessions for securities analysts.

Significant
SubsequentEvents
Events(7) (7)Significant
Subsequent8.

Not applicable<Reference Information>
Property Sale
JPR concluded a sale agreement regarding the following property on December 23, 2021.
< JPR Umeda Loft Bldg. (30.0% co-ownership interest)>
Asset type:
Beneficiary interest (30.0% co-ownership interest)
Sale price:
5,250 million yen
Delivery date:
December 23, 2022 (scheduled)
Buyer:MBS Media Holdings, Inc.
Impact on operating results: JPR plans to record approximately 1,343 million yen in gain on sale of real estate as operating
revenue for the 42nd fiscal period (July 1, 2022 – December 31, 2022).

6

11

Asset Management ReportJapan Prime Realty Investment Corporation

2. Overview
2. Overviewofofthe
theInvestment
Investment Corporation
Corporation(1) (1)
Unitholders’CapitalUnitholders’Capital9.

Total number of authorized units

37th Fiscal
Period as ofJune 30, 2020
5,000,000

38th Fiscal
Period as ofDecember 31, 2020
5,000,000

39th Fiscal
Period as ofJune 30, 2021
5,000,000

40th Fiscal
Period as ofDecember 31, 2021
5,000,000

41st Fiscal
Period as ofJune 30, 2022
5,000,000

958,250

958,250

958,250

958,250

997,178

247,860

247,860

247,860

247,860

261,751

11,085

10,946

10,531

10,22910,506

Total number of units issued andoutstanding
Unitholders' capital (millions of yen)
Total number of unitholders

Matters
RelatedInvestmentUnits
Units(Primary(PrimaryInvestors)
Investors)(2) (2)Matters
Relatedto to
Investment

10.

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 41st fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12 Harumi, Chuo-ku, Tokyo

280,532

28.13

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

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

177,01417.75

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

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

45,311

4.54

Tokyo Tatemono Co., Ltd.

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

29,3002.93

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.50

Meiji Yasuda Life Insurance Company

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

24,0002.40

State Street Bank West Client - Treaty 505234(Standing Proxy: Settlement & Clearing Services
Department, Mizuho Bank, Ltd.)SSBTC CLIENT OMNIBUS ACCOUNT (Standing
proxy: Custody Services Department, Tokyo Branch, The
Hongkong and Shanghai Banking Corporation Limited)1776 Heritage Drive, North Quincy, MA
02171, U.S.A. (Shinagawa Intercity Building
A, 2-15-1 Konan, Minato-ku, Tokyo)
One Lincoln Street, Boston, MA 02111,
U.S.A.
(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

13,226

1.32

12,554

1.25

12,136

1.21

11,9451.19

631,018

63.28

JP MORGAN CHASE BANK 385781 (Standing Proxy:
Settlement & Clearing Services Department, Mizuho
Bank, Ltd.)
JPMorgan Securities Japan Co., Ltd.

25 Bank Street, Canary Wharf, London E14
5JP, United Kingdom(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)
Tokyo Building, 2-7-3 Marunouchi, Chiyodaku, Tokyo

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

127

Asset Management ReportJapan Prime Realty Investment Corporation

Items
RelatedDirectors(3) (3)
Items
Related
toto
Directors

11.

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 41st fiscal period are as follows.
Position
Executive Officer

Name
Yoshihiro Jozaki
Masato Denawa

Supervising
Officers (Note 2)

Nobuhisa Kusanagi

Konomi Ikebe
Independent Auditor

Other Current Assignments
President and Chief Executive Officer, Tokyo Realty
Investment Management, Inc.

Total Directors' Fee
during the 41st Fiscal
Period (thousands of yen)–
(Note 1)

Partner Attorney, Spring Partners
Group Representative Partner of GYOSEI Certified
Public Tax & Accountants' Co.
Representative, Nobuhisa Kusanagi Certified Public
Accountant Office

Numberof Owned
Units

–

6,300

Professor at Graduate School of Horticulture, Chiba
University

EY ShinNihon LLC

–

–

–

–
17,300(Note 3)–(Note 1) Yoshihiro Jozaki, Executive Officer, does not receive any compensation from JPR.
(Note 2) 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 3) The independent auditor fees include fees regarding auditing of JPR’s English financial statements and fees regarding preparation of comfort letters for additional
issuance of new investment units.

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 not to 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.

Matters
ConcerningDirectors
Directors andand Officers
Officers Liability
Insurance
Agreement(4) (4)
Matters
Concerning
Liability
Insurance
Agreeme12.

JPR has entered into a directors and officers liability insurance agreement as follows.
Scope of the Insured

Overview of Agreement[Overview of insured event covered by the insurance]
The agreement covers such losses as compensation payment and dispute costs to be borne by the insured when they receive
a claim for compensation for the unjust actions they have taken based on their positions at JPR.

Executive Officer and all
Supervising Officers of JPR[Burden ratio of insurance premium]
JPR bears the entire amount of the insurance premium.
[Measures to ensure the appropriateness of the execution of duties by directors and officers]
The agreement does not protect the actions, etc. which the insured executed while recognizing that it may constitutecriminal act or violate the laws and regulations.

Asset
Manager,
AssetCustodian
Custodianandand Administrative
Administrative Agent(5) (5)
Asset
Manager,
Asset
Agent

13.

The asset manager, asset custodian and administrative agents of JPR at the end of the 41st fiscal period are as follows.
Outsourcing Category

8

Asset manager

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.

13

Asset Management ReportJapan Prime Realty Investment Corporation

3. Status
ofof
JPR’s
Assets
3. Status
JPR’s
AssetsUnder
UnderManagement
Management(1) (1)
JPR’s
Asset
Structure
JPR’s
Asset
Structure

14.

Asset TypeReal estate

Real estate in trust

40th Fiscal Period(as of December 31, 2021)

Area

Assets owned by JPR(thousands of yen)

41st Fiscal Period(as of June 30, 2022)

Percentage of total
assets (%)

Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

Central Tokyo

98,478,170

19.9

109,961,118

21.7

Greater Tokyo

67,625,678

13.6

67,499,150

13.3

Other Cities

19,743,902

4.0

19,644,226

3.9

Central Tokyo

155,773,488

31.4

155,493,241

30.7Greater Tokyo
Other Cities

61,562,431
54,831,227

12.4
11.1

61,453,840
51,077,424

12.1
10.1

Deposits and otherassets–37,600,580
(–)

7.6
(–)

41,876,811
(–)

8.3
(–)

Total assets–

495,615,481(458,014,900)

100.0(92.4)

507,005,813(465,129,001)

100.0(91.7)(Note 1) Total 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 realestate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

Major
AssetsOwnedby
byJPR
JPR(2) (2)
Major
Assets
Owned

15.

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 41st fiscal period.
Occupancy Rate(%)

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

11,034.78

100.0

11.3

Office22,196.73
8,599.86

92.5
97.0

5.5
3.2

OfficeOffice5,971.69

5,517.91

92.4

2.3

Office15,227.81
8,090.40

14,989.60
8,090.40

98.4
100.0

3.6
2.5

OfficeOffice6,177.74
12,601.57

100.0
95.0

1.8
2.6

OfficeOffice12,113.10

11,920.13

98.4

2.3

Retail, etc.

19,266.47
124,006.42

18,218.55
119,347.27

94.6
96.2

2.7
37.8

OfficeBook Value(thousands of yen)

Leasable Floor
Space (m2)Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

Olinas Tower
Shinjuku Center Bldg.

25,703,599
22,236,487

23,987.40
8,865.77

Tokyo Square Garden

18,319,885

BYGS Shinjuku Bldg.
Kanematsu Bldg.

15,515,468
14,701,048

JPR Sendagaya Bldg.
Sencity Bldg.

14,646,864
13,995,090

6,177.74
13,271.26

Kawasaki Dice Bldg.

12,928,988

Shinjuku Square Tower
Total

12,891,506
189,327,199

Property Name

Leased Floor
Space (m2)Asset Class(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.
(Note 2) The tenants of Shinjuku Center Bldg., Tokyo Square Garden, Sencity Bldg., Kawasaki Dice Bldg. and Shinjuku Square Tower have sublet space to a sub-lessee
and a lease agreement has been executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, theleasable floor space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

149Asset Management ReportJapan Prime Realty Investment Corporation

Itemized
PortfolioAssets
Assets(3) (3)
Itemized
Portfolio

16.

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 41st fiscal period (June 30, 2022).
Area Type

Property Name
Kanematsu Bldg.

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, Tokyo

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

OfficeCentral Tokyo
Retail, etc.

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estateAppraisal ValueBook Valueas of June 30, 2022
as of June 30, 2022
(thousands of yen)(thousands of yen)
(Note)
14,701,048

15,300,000

2,388,853

3,300,000

2,105,366

3,110,000

2,418,329

4,510,000

3,279,686

3,790,000

10,720,140

16,300,000

2,949,427

4,270,000

5,253,853

4,940,000

2,712,690

5,160,000

12,891,506

14,900,000

15,515,468

19,400,000

Real estate566,556804,000

Real estate

22,236,487

19,500,000

Real estate

3,791,713

3,420,000

Shinagawa Canal Bldg.

Real estate

1,883,432

2,360,000

Rokubancho Bldg.

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

2,893,164

3,730,000

JPR Harajuku Bldg.

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Real estate

8,762,167

10,500,000

Shinjuku Center Bldg.
Minami Azabu Bldg.

JPR Sendagaya Bldg.

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

JPR Nihonbashi-horidome Bldg.

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

4,839,753

6,820,000

14,646,864

11,900,000

3,673,930

3,730,000

38,388,259

54,600,000

2,776,053

3,480,000

4,154,404

6,660,000

18,319,885

21,500,000

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 3-chome, Chuo-ku, TokyoJPR Kojimachi Bldg.

6-1 Kojimachi 5-chome, Chiyoda-ku, Tokyo

Real estate

5,846,454

6,840,000

Otemachi Financial City North Tower

9-5, Otemachi 1-chome, Chiyoda-ku, Tokyo

Real estate

11,513,339

13,000,000

Tokyo Tatemono Higashi Shibuya
Bldg.

26-20 Higashi 1-chome, Shibuya-ku, Tokyo

Real estate

11,475,225

12,100,000

JPR Shibuya Tower Records Bldg.

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

11,411,407

14,200,000

JPR Jingumae 432

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

4,256,996

4,260,000

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

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

Beneficiaryinterest
Beneficiaryinterest
Real estate

2,518,733

2,720,000

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

Real estate

3,259,430

3,360,000

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

10,140,317

11,100,000

3,163,412

3,390,000

4,149,515

6,730,000

2,175,896

1,910,000

2,341,252

2,450,000

1,386,756

2,600,000

7,176,001

11,100,000

2,840,449

5,840,000

FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office13-23 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

Type 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

Greater Tokyo

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

Kanematsu Bldg. Annex

MS Shibaura Bldg.

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

Kawaguchi Center Bldg.

1-8 Honcho 4-chome, Kawaguchi, Saitama

JPR Ueno East Bldg.

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

Real estate38-5 Akebonocho 2-chome, Tachikawa,Tokyo
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yokohama, Kanagawa

Beneficiaryinterest
Beneficiaryinterest

2,876,682

4,640,000

12,427,884

18,600,000

Real estate

5,113,782

7,430,000

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

10

Location

15

Asset Management Report

Area Type

Property NameJPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.

Retail, etc.

Greater Tokyo

OfficeOlinas Tower

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

OfficeOther Cities

JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA(Umekita Plaza and South Building)Retail, etc.

GRAND FRONT OSAKA(North Building)Japan Prime Realty Investment Corporation

Location
1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1000, etc., Shinmachi, Chuo-ku, Chiba-shi,
Chiba
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
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
2-4 Ueno 7-chome, Taito-ku, Tokyo
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
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
11-28 Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka
4-1 Ofuka-cho, Kita-ku, Osaka, Osaka(Umekita Plaza)
4-20 Ofuka-cho, Kita-ku, Osaka, Osaka(South Building)
3-1 Ofuka-cho, Kita-ku, Osaka, OsakaJPR Umeda Loft Bldg.

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

Housing Design Center Kobe

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

JPR Chayamachi Bldg.

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

Total

Type ofOwnership
Real estateAppraisal ValueBook Valueas of June 30, 2022
as of June 30, 2022
(thousands of yen)(thousands of yen)
(Note)
25,703,599
41,300,000

Real estate

7,433,415

10,400,000

Beneficiaryinterest

5,588,495

11,000,000

Real estate

13,995,090

15,100,000

Beneficiaryinterest

6,941,338

11,200,000

Real estate

1,561,333

2,970,000

Real estate

7,110,490

5,500,000

3,461,027

4,280,000

12,928,988

13,900,000

3,740,990

4,000,000

1,533,237

2,170,000

1,635,450

2,300,000

2,253,255

4,960,000

1,315,958

1,650,000

1,978,700

4,050,000

2,073,915

3,940,000

Real estate

3,781,494

3,480,000

Real estate

9,821,895

23,000,000

5,279,916

4,630,000

3,907,551

4,720,000

11,837,196

12,300,000

9,537,650

10,100,000

3,727,071

4,230,000

Real estate

6,040,835

7,310,000

Beneficiaryinterest

5,997,520

8,440,000

465,129,001

593,184,000

Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

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

16

11

Asset Management ReportJapan Prime Realty Investment Corporation

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

OfficeOfficeOfficeRetail,etc.

Other Cities

Retail, etc.

Greater Tokyo

Retail, etc.

Central Tokyo

Area Type12

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.
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 Kojimachi Bldg.
Otemachi Financial City North Tower
Tokyo Tatemono Higashi Shibuya Bldg.
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
JPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
(Note 3)
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 Shinsaibashi West
GRAND FRONT OSAKA(Umekita Plaza and South Building)
GRAND FRONT OSAKA(North Building)
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

40th Fiscal Period
41st Fiscal Period(from Jul. 1, 2021 to Dec. 31, 2021)(from Jan. 1, 2022 to Jun. 30, 2022)
RentalRentalRatio to Number
Ratio toNumber of Occupancy Revenues
Occupancy Revenues
Total of Tenants
Total
Tenants at Rate at throughout
Rate atthroughout
Rental at Period
RentalPeriod End Period End
PeriodPeriod End
PeriodRevenues
End
Revenues(Note 1)(%)(thousands(%)(thousands(%)(Note 1)(%)
of yen)of yen)10
95.0
409,642
2.5
12
100.0
405,2972.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
91,5660.6
5100.0
94,1510.6
16
96.7
109,527
0.7
17
100.0
130,2670.8
8
100.0
119,1260.7
7
89.2
120,445
0.7
10
100.0
493,272
3.0
10
100.0
484,8872.8
2100.0
141,3120.9
2100.0
142,7160.8
9
90.9
142,9760.9
990.9
142,8310.8
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
23
93.6
421,6882.6
24
94.6
408,2402.4
22
95.6
607,9693.7
23
98.4
577,418
3.4
2
77.1
30,2070.2
4
100.0
34,1140.2
30
92.7
506,1743.1
28
97.0
519,3343.1
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
92.3
60,2320.4
6
100.0
71,6800.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
10
100.0
276,198
1.7
10
100.0
294,5571.7
5
100.0
192,9321.2
5
100.0
192,7761.1
6
100.0
298,5011.8
6
100.0
303,7171.8
9100.0
110,0500.7
9100.0
116,084
0.7
2

100.0

1,802,000

11.0

2

100.0

1,802,000

10.6

23
9
47
5
10
－
1
7
1

95.8
100.0
91.5
70.9
100.0
－
100.0
100.0
100.0

115,548
181,516
356,364
123,345
272,862－(Note 2)85,253(Note 2)

0.7
1.1
2.2
0.8
1.7
－
(Note 2)0.5
(Note 2)

24
9
47
6
10
14
1
7
1

98.3
100.0
92.4
83.2
100.0
79.6
100.0
100.0
100.0

117,223
189,171377,207
110,649
265,822
278,190(Note 2)87,736(Note 2)

0.7
1.1
2.2
0.7
1.6
1.6
(Note 2)0.5
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

8
6
7
40
19
21
41
10
22
5
43
16
20
4
71
1
1
1
3
28
10
11

74.1
100.0
100.0
95.5
100.0
91.4
100.0
100.0
97.6
64.0
100.0
98.3
98.8
100.0
96.0
100.0
100.0
100.0
100.0
98.4
100.0
100.0

187,346
68,793
264,044
138,372
133,287
108,125475,303
183,012150,673
207,232
349,340
1,017,448
308,421295,871499,684(Note 2)
(Note 2)
(Note 2)
127,041
449,530
111,079
123,266

1.1
0.4
1.6
0.8
0.8
0.7
2.9
1.1
0.9
1.3
2.1
6.2
1.9
1.8
3.1
(Note 2)
(Note 2)
(Note 2)
0.8
2.7
0.7
0.8

9
5
7
40
19
23
40
10
20
8
44
19
21
5
70
1
1
1
3
29
10
11

100.0
87.2
100.0
95.3
100.0
94.3
100.0
100.0
90.8
100.0
100.0
92.5
100.0
65.0
95.0
100.0
100.0
100.0
100.0
98.4
100.0
100.0

195,419
77,497268,274
133,126
133,424
109,663477,209
181,594
146,116
337,054355,522921,898
290,928
239,717
486,494(Note 2)
(Note 2)
(Note 2)
127,041
457,179
117,145
126,506

1.1
0.5
1.6
0.8
0.8
0.6
2.8
1.1
0.9
2.0
2.1
5.4
1.7
1.4
2.9
(Note 2)
(Note 2)
(Note 2)
0.7
2.7
0.7
0.7

－

－

146,483

0.9

－

－

－

－

20
15
17
14
12
5
16
8
14

100.0
99.9
83.6
98.2
100.0
94.1
99.9
100.0
99.9

115,749
197,758
96,889123,079
132,651
150,188552,609
127,995
140,432

0.7
1.2
0.6
0.8
0.8
0.9
3.4
0.8
0.9

20
15
18
14
12
5
16
8
14

100.0
99.9
99.8
87.8
100.0
94.1
99.9
100.0
99.9

113,870
199,418
96,059102,930
138,120
146,400
566,130
128,226
148,858

0.7
1.2
0.6
0.6
0.8
0.9
3.3
0.8
0.9

239

97.5

(Note 2)

(Note 2)

243

90.4

(Note 2)

(Note 2)9798.2

(Note 2)

(Note 2)

100

98.6

(Note 2)

(Note 2)

1
1
5
1,134

100.0
100.0
100.0
97.3

(Note 2)
(Note 2)
179,598
16,382,659(Note 2)
(Note 2)
1.1
100.0

1
1
5
1,171

100.0
100.0
100.0
97.5

(Note 2)
(Note 2)
177,714
17,019,663(Note 2)
(Note 2)
1.0
100.0

17

Asset Management ReportJapan Prime Realty Investment Corporation(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Otemachi Financial City North Tower, Rise Arena Bldg., Sencity Bldg. and Kawasaki Dice Bldg.: when a single tenantleases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Otemachi Financial
City North Tower, Rise Arena Bldg., Sencity Bldg., Kawasaki Dice Bldg., GRAND FRONT OSAKA (Umekita Plaza and South Building) and part of GRANDFRONT OSAKA (North Building) have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates inaccordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants (for GRAND FRONTOSAKA (North Building), some portions employ fixed master lease or direct lease, but the figure indicates the number of end tenants, including those of such
portions.).
(Note 2) JPR does not disclose the rental revenues throughout period of the properties and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.
(Note 3) JPR sold Tokyo Tatemono Honmachi Bldg. on December 24, 2021.

StatusOther
Assets(4) (4)
Statusof of
Other
Assets17.

Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above. There
were no additional major specified assets that are main investment targets of JPR other than those listed under (3) above and thoseindicated below as of the end of the 41st fiscal period.
1) Stock
Issuer Name

Number of
SharesKMO Corporation

1,666

Acquisition Price(thousands of yen) (Note 1)

Appraisal Value(thousands of yen) (Note 2)

Unit Price

Unit Price

50

Amount83,740

Amount50

83,740

Profit andLoss from
Valuation

Remarks－－(Note 1) The acquisition price indicates the amount that includes the expenses required for the acquisition.
(Note 2) The appraisal value indicates the book value.

2) Other securities
Type of AssetBook Value(thousands of yen)

VolumeClaim for refund of funds

Unit Price
1

Appraisal Value(thousands of yen) (Note 1)

AmountUnit Price

5,120

－

Amount5,120－Profit andLoss from
Valuation－

Remarks(Note 2)

(Note 1) The appraisal value indicates the book value.
(Note 2) The asset is a claim for refund of funds of Knowledge Capital, a general incorporated association.

3) Other assets
Type of Asset
Claim for refund of funds

Book Value(thousands of yen)

VolumeUnit Price
1

Appraisal Value(thousands of yen) (Note 1)

Amount710－

Unit Price

Amount－710

Profit andLoss from
Valuation－

Remarks(Note 2)

(Note 1) The appraisal value indicates the book value.
(Note 2) The asset is a claim for refund of funds of GRAND FRONT OSAKA TMO, a general incorporated association.

18

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Asset Management ReportJapan Prime Realty Investment Corporation

4. Capital
Expenditures
4. Capital
ExpendituresofofOwned
Owned Real
Real Estate
Estate(1) (1)
PlannedCapitalExpenditures
PlannedCapitalExpenditures

18.

The following are major items of capital expenditures for renovation works, etc. planned as of the end of the 41st fiscal period for JPRowned real estate and entrusted real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses
include portions that are classified as expenses in accounting.

Property Name

Location

Fukuoka,
Fukuoka
Shibuya-ku,
JPR Harajuku Bldg.
Tokyo
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
Shinjuku-ku,
BYGS Shinjuku Bldg.
Tokyo
Minato-ku,
MS Shibaura Bldg.
Tokyo
Shibuya-ku,
JPR Sendagaya Bldg.
Tokyo
JPR Ueno East Bldg.
Taito-ku, Tokyo
JPR Shinsaibashi
Osaka, Osaka
West
Sencity Bldg.
Chiba, Chiba
Housing Design
Kobe, Hyogo
Center Kobe
Saitama,
JPR Omiya Bldg.
SaitamaYakuin Business
GardenPurposePlanned Amount (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 41st
Paid
Fiscal Period

Schedule

Repair of exterior walls

May 2022–Dec. 2022

220

–

–

Jun. 2022–Dec. 2022

127

–

–

Jul. 2022–Nov. 2022

67

–

–

Replacement of escalators

Oct. 2022–Dec. 2022

65

–

–

First phase of reinforcement of elevators

Jul. 2021–Aug. 2022

59

–

–

Repair of exterior walls

Jul. 2022–Nov. 2022

51

–

–

Repair of exterior walls

Jul. 2022–Dec. 2022

44

–

–

Replacement of toilets and repair of corridors
in common areas
Fourth phase of replacement of piping
equipment

Replacement of elevators (No.1 and No.2)

Jun. 2022–Dec. 2022

43

–

–

Reinforcement of elevators

Jul. 2022–Dec. 2022

35

–

–

Reinforcement of elevator (No. 3)

Sep. 2022–Dec. 2022

35

–

–

Partitioning of tenant sections

Jul. 2022–Dec. 2022

30

–

–

CapitalExpendituresduringthe
the41st
41stFiscal
FiscalPeriod
Period(2) (2)
CapitalExpendituresduring

19.

The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 41st 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 with the aim of attracting new tenants, among other works. In addition, aside from these
constructions, JPR conducted construction of 481 million yen (Note), which was appropriated as expenditures for repair andmaintenance.
Property Name

Location

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Sencity Bldg.

Chiba, Chiba

JPR Shinsaibashi Bldg.

Osaka, OsakaJPR Omiya Bldg.
JPR Kojimachi Bldg.
Kawaguchi Center Bldg.

Saitama, Saitama
Chiyoda-ku, Tokyo
Kawaguchi Center Bldg.

Sencity Bldg.

Chiba, Chiba

JPR Shinsaibashi Bldg.

Osaka, OsakaJPR Omiya Bldg.

Saitama, Saitama

Other Capital Expenditures

Purpose

PeriodThird phase of replacement of piping
Jan. 2022–May 2022
equipment
Replacement of toilets in the west
Jan. 2022–Mar. 2022
building
Second phase of replacement of airApr. 2022–Jun. 2022
conditioning units
Beautification of toilets
Apr. 2022–May 2022
Repair of exterior walls
Jan. 2022–Jun. 2022
Repair of exterior walls
Oct. 2021–Mar. 2022
Replacement of facilities at the third
Jan. 2022–Feb. 2022
electrical room
Repair of exterior walls
Apr. 2022–Jun. 2022
Replacement of lighting equipmentwith LED lamps in exclusive areas
Apr. 2022–Jun. 2022
(5th through 9th floors)
Replacement of air-conditioning units, repair of common areas,
replacement of lighting equipment with LED lamps, etc.
Total

Construction
Expenses(millions of yen)
70
55
54
53
41
41
40
35
31
956
1,381

(Note) Expenditures for repair and maintenance included 11 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

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Asset Management ReportJapan Prime Realty Investment Corporation

Amounts
Reservedfor
forLong-Term
Long-TermRepairs
Repairsand
and Maintenance
Maintenance Plans(3) (3)
Amounts
Reserved
Plans

20.

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(Millions of yen)

37th Fiscal Period(Jan. 1, 2020 Jun. 30, 2020)

38th Fiscal Period(Jul. 1, 2020 Dec. 31, 2020)

39th Fiscal Period(Jan. 1, 2021 Jun. 30, 2021)

40th Fiscal Period(Jul. 1, 2021 Dec. 31, 2021)

41st Fiscal Period(Jan. 1, 2022 Jun. 30, 2022)

1,310

1,424

1,421

1,506

1,610

939

952

859

1,008

802

825

955

774

904

654

1,424

1,421

1,506

1,610

1,758

20

15

Asset Management ReportJapan Prime Realty Investment Corporation

5. Expenses
and
5. Expenses
andLiabilities
Liabilities
Details
ExpensesRelated
Relatedto
toManagement
Management(1) (1)
Details
ofof
Expenses1.

40th Fiscal Period(Jul. 1, 2021 - Dec. 31, 2021)(Thousands of yen)

750,590

41st Fiscal Period(Jan. 1, 2022 - Jun. 30, 2022)
802,633

Management fee 1

232,820

242,442Management fee 2Management fee 3

196,807
320,961

204,735
355,455(b) Administrative Service and Asset Custody Fees

82,71583,054(c) Directors' Compensation(d) Trust Fees

5,600
19,8066,300
17,361(e) Other Operating Expenses
Total

180,632
1,039,344

158,329
1,067,678

Item(a) Asset Management Fees (Note)(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (40th fiscal period: 143,009 thousand
yen, 41st fiscal period: 56,500 thousand yen) have been paid and included in the book value of each property, and fees for asset management of the sold property(40th fiscal period: 35,550 thousand yen, 41st fiscal period: 26,250 thousand yen) have been paid and deducted from gain on sale of each property.

StatusLoans
Payable(2) (2)
Statusof of
Loans
Payable2.

As of June 30, 2022 JPR has the following loans payable.

Short-m Loans
PayableCategory

Drawdown
Date

Balance asof Jan. 1,
2022(millionsof yen)

Mizuho Bank, Ltd. (Note 4)

Jul. 5, 2021

600

－

0.167

Jul. 5, 2022

Mizuho Bank, Ltd. (Note 5)

Dec. 24, 2021

7,400

－

0.166

Jul. 5, 2022

Resona Bank, Ltd. (Note 6)

Oct. 28, 2021

1,000

－

0.167

Jul. 5, 2022

Resona Bank, Ltd. (Note 7)

Dec. 24, 2021

3,000

－

0.167

Jul. 5, 2022



12,000－LenderLong-Term Loans Payable 

Total

16

Balance as
Averageof Jun. 30, Interest Rate
Repayment
2022
(%)
Date
(millions(Note 1)of yen)
(Note 2)

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

4,000

－

0.400 Mar. 30, 2022

Mizuho Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Repayment
MethodUseRemarksMizuho Bank, Ltd.

Dec. 5, 2019

2,000

2,000

0.646 Dec. 5, 2029

Mizuho Bank, Ltd.

Mar. 30, 2021

3,000

3,000

0.675 Mar. 30, 2031

Mizuho Bank, Ltd.

Mar. 30, 2022

－

2,400

0.675 Mar. 30, 2032

Mar. 30, 2022

－

1,000

0.675 Mar. 30, 2032

Mar. 30, 2022－

600

MUFG Bank, Ltd.

Aug. 31, 2015

1,000

1,000

Principal lump
Unsecured/
0.675 Mar. 30, 2032 sum repayment (Note 3) Unguaranteed on maturity
0.873 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

MUFG Bank, Ltd.

Jun. 25, 2021

4,000

4,000

0.450 Jun. 23, 2028

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

－

1.033 Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

4,000

－

0.400 Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

Dec. 5, 2019

1,000

1,000

0.245 Dec. 5, 2023

Mizuho Bank, Ltd.
(Green Loan)
Mizuho Bank, Ltd.
(Sustainability Loan)

21

Asset Management Report

Long-Term Loans PayableCategory

Japan Prime Realty Investment Corporation

LenderDrawdown
Date

Balance asof Jan. 1,
2022(millionsof yen)

Balance as
Averageof Jun. 30, Interest Rate
Repayment
2022
(%)
Date
(millions(Note 1)of yen)
(Note 2)Sumitomo Mitsui Banking Corporation

Jun. 26, 2020

3,000

3,000

0.300 Jun. 26, 2025

Sumitomo Mitsui Banking Corporation

Mar. 30, 2021

2,000

2,000

0.450 Mar. 30, 2028

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

－

2,500

0.675 Mar. 30, 2032

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

－

2,000

0.600 Mar. 28, 2031

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

－

2,000

0.525 Mar. 29, 2030

Sumitomo Mitsui Banking Corporation

Jun. 27, 2022

－

2,500

0.6975 Jun. 27, 2029

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

Development Bank of Japan, Inc.

Jun. 27, 2019

2,100

2,100

0.572 Jun. 27, 2029

Development Bank of Japan, Inc.

Jun. 25, 2021

800

800

0.600 Jun. 25, 2030

Development Bank of Japan, Inc.

Dec. 3, 2021

2,000

2,000

0.600 Dec. 3, 2030

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

Shinsei Bank, Ltd.

Apr. 5, 2019

5,000

5,000

0.673

Shinsei Bank, Ltd.

Sep. 24, 2020

1,000

1,000

0.675 Sep. 24, 2030

Shinsei Bank, Ltd.

Sep. 24, 2020

1,000

1,000

0.525 Sep. 25, 2028

Shinkin Central Bank

Dec. 5, 2018

3,000

3,000

0.663

Shinkin Central BankJun. 27, 2019

2,000

2,000

0.447 Dec. 27, 2027

Shinkin Central Bank

Dec. 14, 2021

2,000

2,000

0.525 Dec. 14, 2029

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

0.604

The Norinchukin Bank

Jun. 27, 2019

2,000

2,000

0.405 Jun. 25, 2027

The Norinchukin Bank

Dec. 24, 2020

2,000

2,000

The Norinchukin Bank

Dec. 14, 2021

2,000

2,000

0.525 Dec. 25, 2028 Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteed 
0.525 Dec. 14, 2029 on maturityMizuho Trust & Banking Co., Ltd.

Feb. 4, 2020

3,000

3,000

0.586

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2020

2,000

2,000

0.606 Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2020

2,000

2,000

0.675 Dec. 24, 2030

Use

RemarksApr. 5, 2029

Jun. 4, 2027

Jun. 5, 2025

Feb. 4, 2030

Aozora Bank, Ltd.

Jul. 3, 2017

900

900

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

2,000

0.553 Feb. 25, 2025

Aozora Bank, Ltd.

Sep. 24, 2020

500

500

0.525 Sep. 25, 2028

Aozora Bank, Ltd.

Apr. 5, 2022

－

1,000

0.525

Apr. 5, 2030

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

The Bank of Fukuoka, Ltd.

Sep. 24, 2019

1,000

1,000

0.554 Sep. 21, 2029

The Bank of Fukuoka, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813 Jun. 21, 2028

Sumitomo Life Insurance Company

Oct. 11, 2016

2,000

2,000

0.453 Oct. 11, 2024

Sumitomo Life Insurance Company

Jul. 22, 2019

1,000

1,000

0.583 Jul. 20, 2029

Sumitomo Life Insurance Company

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

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. 14, 2021

1,000

1,000

0.525 Dec. 14, 2029

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

0.969 Sep. 4, 2024

22

0.625

Repayment
MethodJul. 3, 2025

Feb. 5, 2025

17

Asset Management Report

Drawdown
Date

Balance asof Jan. 1,
2022(millionsof yen)

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Taiyo Life Insurance Company

Dec. 25, 2020

1,000

1,000

0.675 Dec. 24, 2030

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

The Chugoku Bank, Ltd.

Sep. 25, 2018

1,000

1,000

0.661 Mar. 25, 2026

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

The Yamaguchi Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Yamaguchi Bank, Ltd.

Mar. 30, 2022

－

1,000

0.675 Mar. 30, 2032

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

The Iyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Kiyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Kiyo Bank, Ltd.

Mar. 30, 2022

－

1,000

0.675 Mar. 30, 2032

Sompo Japan Insurance Inc.

Dec. 25, 2015

2,000

2,000

0.759 Dec. 25, 2023

Nippon Life Insurance Company

Nov. 22, 2019

2,000

2,000

0.225 Nov. 22, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2020

1,000

1,000

0.300

The Hachijuni Bank, Ltd.

Sep. 24, 2021

1,000

1,000

The Yamanashi Chuo Bank, Ltd.

Apr. 30, 2021

1,000

1,000

CategoryLong-Term Loans Payable

Japan Prime Realty Investment Corporation

Lender

Balance as
Averageof Jun. 30, Interest Rate
Repayment
2022
(%)
Date
(millions(Note 1)of yen)
(Note 2)Repayment
MethodUseRemarks

Jun. 5, 2028

Oct. 6, 2023

Oct. 6, 2023

Oct. 9, 2025

The Yamanashi Chuo Bank, Ltd.

Apr. 5, 2022

－

1,000

0.310 Sep. 24, 2026 Principal lump
Unsecured/0.600 Apr. 30, 2030 sum repayment (Note 3) Unguaranteed on maturity
0.600 Apr. 5, 2032

Resona Bank, Ltd.

Mar. 30, 2017

2,000

2,000

0.438 Sep. 30, 2022

NTT TC Leasing Co., Ltd. (Note 8)

May 31, 2018

1,000

1,000

0.408 May 31, 2023

Kansai Mirai Bank, Limited

Mar. 30, 2022

－

1,000

0.600 Mar. 30, 2032

The 77 Bank, Ltd.

May 31, 2018

1,000

1,000

0.408 May 31, 2023

Daishi Hokuetsu Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Daido Life Insurance Company

Dec. 27, 2018

1,000

1,000

0.316 Dec. 25, 2023

The Chiba Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.449 Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Dec. 27, 2018

1,000

1,000

0.299 Jun. 27, 2023

The Hyakugo Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.582 Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited

Oct. 4, 2019

1,000

1,000

0.310

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691 Mar. 25, 2026

Bank of Kyoto, Ltd.

Mar. 30, 2022－500

0.600 Mar. 30, 2032

157,000

165,000

Total

Oct. 2, 2026











(Note 1) The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(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) Of the 2,000 million yen in short-term loans payable that was borrowed on July 5, 2021 from Mizuho Bank, Ltd., JPR made early repayment of 1,400 million yen
on December 7, 2021 and 600 million yen on March 30, 2022.
(Note 5) Of the 7,400 million yen in short-term loans payable that was borrowed on December 24, 2021 from Mizuho Bank, Ltd., JPR made early repayments of 3,000
million yen on January 21, 2022, 1,000 million yen on February 22, 2022 and 3,400 million yen on March 30, 2022.
(Note 6) Of the 2,000 million yen in short-term loans payable that was borrowed on October 28, 2021 from Resona Bank, Ltd., JPR made early repayment of 1,000 million
yen on December 7, 2021 and 1,000 million yen March 30, 2022.
(Note 7) Of the 3,000 million yen in short-term loans payable that was borrowed on December 24, 2021 from Resona Bank, Ltd., JPR made early repayment of 1,000 million
yen on March 30, 2022 and 2,000 million yen April 5, 2022.
(Note 8) The lender was changed from NTT FINANCE CORPORATION to NTT TC Leasing Co., Ltd. as the former transferred its loan claims to the latter on June 30,
2022.

18

23

Asset Management ReportJapan Prime Realty Investment Corporation

Investment
CorporationBonds
Bonds(3) (3)
Investment
Corporation3.

Details of JPR’s investment corporation bonds outstanding as of June 30, 2022 are as follows.
Name
Seventh Series ofInvestment Corporation Bonds
Eighteenth Series ofInvestment Corporation Bonds
Nineteenth Series ofInvestment Corporation Bonds
Twenty-first Series ofInvestment Corporation Bonds
Twenty-second Series ofInvestment Corporation Bonds
Twenty-third Series ofInvestment Corporation Bonds
Twenty-fourth Series ofInvestment Corporation Bonds(Green Bonds)
Twenty-fifth Series ofInvestment Corporation Bonds(Green Bonds)
Twenty-sixth Series ofInvestment Corporation Bonds
Twenty-seventh Series ofInvestment Corporation Bonds(Sustainability Bonds)
Twenty-eighth Series ofInvestment Corporation Bonds(Green Bonds)

Issue Date

Balance as of
Balance as of
CouponRate
Jan. 1, 2022
Jun. 30, 2022(%)
(millions of yen) (millions of yen)

Maturity Date

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

May 31, 2018

3,000

3,000

0.550

May 31, 2028

Jul. 31, 2019

5,000

5,000

0.570

Jul. 31, 2029

Nov. 26, 2020

6,000

6,000

0.510

Nov. 26, 2030

Mar. 16, 2021

3,000

3,000

0.760

Mar. 14, 2036

Dec. 7, 2021

1,400

1,400

0.420

Dec. 5, 2031

Dec. 7, 2021

1,000

1,000

0.670

Dec. 5, 2036

37,90037,900

Total

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.

Subscription
RightstotoShares
Shares(4) (4)
Subscription
Rights4.

Not applicable24

19

Asset Management ReportJapan Prime Realty Investment Corporation

6. Acquisitions
the 41st
41st Fiscal
FiscalPeriod
Period6. Acquisitionsand
andSalesSales during
during theAcquisition
andSaleSaleofofReal
RealEstate
Estateandand Asset-Backed
Asset-Backed Securities(1) (1)
Acquisition
andSecurities

5.

Acquisition

Type of
Asset

Real Estate NameTokyo Tatemono Higashi
Shibuya Bldg.
JPR Umeda Loft Bldg.
Beneficiary(30.0% co-ownershipinterest
interest)
Real estate

Total(Note)

Sale

Acquisition Date

AcquisitionPrice(millions ofyen)(Note)

January 18, 2022

11,300－－－11,300

Sale Date

Sale Price
Difference
Sale
Sale Profit
Book Value(A)(C)
Expense and Loss
(B)
(millions(A)-(B)(D)(C)-(D)(millionsof yen)(millions (millions (millionsof yen)(Note)
of yen)of yen)of yen)

－

－

－

－

－

－

June 30, 2022

5,250

3,727

1,522

184

1,338

－

5,250

3,727

1,522

184

1,338

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

Acquisition
andSaleSaleofofOther
OtherAssets
Assets(2) (2)Acquisition
and6.

JPR made no acquisition or sale of other assets in the 41st fiscal period.

SurveyValuesofofSpecified
Specified Assets,
Assets, Etc.
(3) (3)
Surveyonon
ValuesEtc.

7.

1) Real estate, etc.
AcquisitionorType of Asset
Sale

Acquisition

Real estate

Sale

Beneficiaryinterest

Real Estate NameTokyo Tatemono
Higashi Shibuya
Bldg.
JPR Umeda Loft
Bldg.
(30.0% co-ownershipinterest)

Transaction Date

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

Appraisal Date

January 18, 2022

11,30012,100

Tanizawa Sogo
Appraisal Co., Ltd.

November 30, 2021

June 30, 2022

5,250

4,200
(Note 3)

Japan Valuers Co.,Ltd.

November 1, 2021

(Note 1) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 2) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Real Estate
Subject to Securitization.”(Note 3) The real estate appraisal value of JPR Umeda Loft Bldg. (30.0% co-ownership interest) indicates the value equivalent for 30.0% co-ownership interest of theappraisal value of the entire property as of November 1, 2021.

20

25

Asset Management ReportJapan Prime Realty Investment Corporation

Transactions
withInterestedParties
PartiesandandMajor
MajorShareholders
Shareholders(4) (4)
Transactions
withInterested

8.

1) Transaction Status(Thousands of yen)Transaction Amount, Etc.

Category

Purchase Amount, Etc.

Total

Sale Amount, Etc.
11,300,000

5,250,000

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

11,300,000(100.0%)－(－%)

11,300,000(100.0%)－(－%)2) Value of Fee Expenses
Category

Total Paid Fees
(A)

Property Brokerage Fees

157,500

Property Management Fees (Note 2)

344,660

Outsourcing Expenses

699,677

Tenant Brokerage Fees

118,377

Breakdown of Transaction with Interested Parties andMajor Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Real Estate Sales Co., Ltd.
157,500
Tokyo Tatemono Co., Ltd.
229,991
Prime Place Co., Ltd.
22,918
Tokyo Tatemono Co., Ltd.
442,290
Prime Place Co., Ltd.
14,378
Tokyo Tatemono Co., Ltd.
23,859
Prime Place Co., Ltd.
20,500(Thousands of yen)
Ratio to Total
Amount(B/A)
100.0%
66.7%
6.6%
63.2%
2.1%
20.2%
17.3%

(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 property management fees indicated in the above table include construction management fees (total of 36,388 thousand yen) appropriated as assets and nothandled 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 41st fiscal period.
Tokyo Tatemono Co., Ltd.

725,834 thousand yen

Prime Place Co., Ltd.

91,363 thousand yen

Tokyo Real Estate Management Co., Ltd.

165,622 thousand yen

Shinjuku Center Building Management Co., Ltd.

85,082 thousand yen(5) Transactions with the Asset Management Company regarding
Concurrent
Conducted
byConcurrent
the Asset(5) Transactions
with the AssetWork
Management
Company regarding
Work Management
Conducted by the AssetCompany
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.

26

21

Asset Management ReportJapan Prime Realty Investment Corporation

7. Overview
7. OverviewofofAccounting
Accounting(1) (1)
Assets,Liabilities,
Loss
Assets,Liabilities,Principal,
Principal,andandProfits
Profits and Loss

9.

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.

Changes
CalculationMethod
Methodofof Depreciation
Depreciation(2) (2)
Changesinin
Calculation

10.

No change has been made.

Changesin Valuation
MethodRealEstate
EstateandInfrastructure
Assets(3) (3)
Changesin Valuation
MethodofofReal
andInfrastructure
Assets11.

11.

No change has been made.

8. Overview of Self-Managed Investment Trust Beneficiary
8. Overview
of Self-Managed Investment Trust Beneficiary Certificates
Certificates
Acquisition(1) (1)
Acquisition

12.

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).

Units
Held
(2) (2)
Units
Held

13.

Number of Units Held at End
of Period

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)35th Fiscal Period(Jan. 1, 2019 – Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 – Jun. 30, 2020)
38th Fiscal Period(Jul. 1, 2020 – Dec. 31, 2020)
39th Fiscal Period(Jan. 1, 2021 – Jun. 30, 2021)
40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)
41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)(Note) Total investment at end of period represents the acquisition price.

22

27

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

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

Asset Management ReportJapan Prime Realty Investment Corporation

9. Disclosure
ForeignReal
RealEstate
Estate
9. Disclosureon
onCorporation
CorporationOwning
Owning Foreign
Not applicable

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

11.11.
Other
Other
Notice(1) (1)
Notice14.

Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the 41st fiscal
period include the following:
Date of Board of Directors
Meeting

January 12, 2022

Approved Item

Overview

Execution of New Investment Units
Underwriting Agreement and New
Investment Unit Purchase Agreement
related to the Greenshoe Option

With regard to the additional issuance of new investment units approvedat the Board of Directors meeting held on January 4, 2022, theadministrative services related to the offering of these investment units
were outsourced to the underwriters (Mizuho Securities Co., Ltd.,SMBC Nikko Securities Inc., Daiwa Securities Co., Ltd., Nomura
Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co.,
Ltd.).
To tie a greenshoe option to the additional issuance of the investment
units, JPR and Tokyo Realty Investment Management, Inc. executed a
New Investment Unit Purchase Agreement related to the Greenshoe
Option with Mizuho Securities.

Other(2) (2)Other

15.

Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis Semi-Annual Report.

28

23

Financial Statements

Japan Prime Realty Investment Corporation

Balance
Sheets(1) (1)
Balance
Sheets1.

(Thousands of yen)
End of 40th Fiscal Period(Dec. 31, 2021)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

End of 41st Fiscal Period(Jun. 30, 2022)

22,803,957
12,743,466
315,031
132,731
346,039
15,98926,708,733
12,848,490
492,985
127,655－
42,31136,357,215

40,220,177

66,302,138(22,029,896)

68,379,448(22,902,238)

44,272,242

45,477,209

Buildings in trust
Accumulated depreciation

98,874,885(37,976,679)

98,413,791(38,619,956)

Buildings in trust, net
Structures
Accumulated depreciation
Structures, net

60,898,205
78,936(34,426)
44,51059,793,834
88,829(36,612)52,216Structures in trust
Accumulated depreciation
Structures in trust, net

125,139(79,475)
45,664

127,940(80,917)47,022

Machinery and equipment
Accumulated depreciation

826,696(548,197)

834,144(565,442)

Buildings, net

Machinery and equipment, net

278,499

268,702

Machinery and equipment in trust
Accumulated depreciation

1,980,756(1,507,805)

2,017,750(1,537,147)

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

472,951
186,134(98,400)

480,602
215,516(108,569)

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

87,734279,230(185,202)
94,028106,946
295,521(195,072)
100,448

129,361,642
210,654,006
1,077
1,865
446,212,429

139,394,811
207,559,589
2,583
42,610453,326,577

11,801,831
2,307

11,801,831
2,970

Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets

11,804,138

11,804,801

88,860740,252
200,454710
1,030,276

88,860784,089
554,046710
1,427,705

Total noncurrent assets

459,046,844

466,559,084

195,018
16,402
211,420

180,345
46,206
226,551495,615,481

507,005,813

LandLand in trust
Construction in progress
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Other

Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

29

1

Financial Statements

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 40th Fiscal Period(Dec. 31, 2021)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other

End of 41st Fiscal Period(Jun. 30, 2022)

2,910,219
12,000,000－
18,500,000
1,124,191
92,329605
173,458
2,886,309
24,221

2,677,555－
2,000,000
16,000,000
1,057,202
86,586605
542,378
2,813,178
1,215

37,711,335

25,178,722

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

37,900,000
138,500,000
9,787,659
14,066,877
200,254,537

35,900,000
149,000,000
10,081,605
13,932,856
208,914,462

Total liabilities

237,965,873

234,093,184

247,860,796

261,751,240

1,887,437

2,546,454

1,887,437

2,546,454

7,901,374
9,788,811

8,614,933
11,161,388

Total current liabilities

Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings
Total surplus

257,649,607

Total unitholders' equity*2

Total net assets
Total liabilities and net assets

30

257,649,607
495,615,481

272,912,629*2272,912,629
507,005,813

Financial Statements

Japan Prime Realty Investment Corporation

Statements
IncomeandandRetained
RetainedEarnings
Earnings(2) (2)
Statements
ofof
Income2.

(Thousands of yen)
40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)

Operating revenue
Rent revenue-real estate
Gain on sale of real estate*1*2

16,382,659
1,870,956

41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)*1*2

18,253,616

Total operating revenue
Operating expenses
Expenses related to rent business
Loss on sale of real estate
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses*1*2

7,731,428
856,197
750,590
82,7155,600
19,806
180,632
9,626,970

17,019,663
1,338,228
18,357,892*1

7,946,916－
802,633
83,0546,300
17,361
158,329
9,014,594

8,626,646

9,343,297

208
4,350
12,4752,266

192
39,5361,449
2,387

19,301

43,565505,001
28,240196,606
15,166
7,084
266
752,365

510,215
38,869200,124
14,672
14,727284
778,893

7,893,582
7,893,582

8,607,969
8,607,969

Income taxes-current

605

605

Total income taxes
Net income

605
7,892,977

605
8,607,364

Retained earnings brought forward
Unappropriated retained earnings

8,396
7,901,374

7,569
8,614,933

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
Total non-operating expenses
Ordinary income
Income before income taxes

31

3Financial Statements

Japan Prime Realty Investment Corporation

Statements
ChangesininUnitholders’
Unitholders’ Equity
Equity(3) (3)
Statements
ofof
Changes3.

(Thousands of yen)
40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)

41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)

247,860,796

247,860,796

Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period
Issuance of units

13,890,444－

13,890,444

247,860,796

261,751,240

1,103,494

1,887,437

Provision of reserve for reduction entry

783,942659,017

Total changes of items during the period

783,942659,017

1,887,437

2,546,454

8,129,659

7,901,374

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

Balance at end of current period
Unappropriated retained earnings
Balance at beginning of current period
Changes of items during the period(783,942)(659,017)

Dividends from surplus(7,337,320)(7,234,787)

Net income

7,892,977

8,607,364

Total changes of items during the period(228,284)

713,559

7,901,374

8,614,933

9,233,153

9,788,811

Provision of reserve for reduction entry

Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry－－

Dividends from surplus(7,337,320)(7,234,787)

Net income

7,892,977

8,607,364

555,657

1,372,576

Balance at end of current period

9,788,811

11,161,388

Total unitholders' equity
Balance at beginning of current period

257,093,950

257,649,607

Total changes of items during the period

Changes of items during the period
13,890,444

Issuance of units
Provision of reserve for reduction entry－－

Dividends from surplus(7,337,320)(7,234,787)

Net income

7,892,977

8,607,364

555,657

15,263,021

Balance at end of current period

257,649,607

272,912,629

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

257,093,950

257,649,607

Total changes of items during the period

13,890,444

Issuance of units
Provision of reserve for reduction entry－－

Dividends from surplus(7,337,320)(7,234,787)

Net income

7,892,977

8,607,364

555,657

15,263,021

257,649,607

272,912,629

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

432

Financial Statements

Japan Prime Realty Investment Corporation(4) Statements of Cash Distributions(4) Statements of Cash Distributions

4.

I.
II.
III.
IV.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)
Voluntary reserve
Provision of reserve for reduction entry

40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)
7,901,374,244 yen
7,234,787,500 yen(7,550 yen)

41st Fiscal Period(Jan. 1, 2022 –Jun. 30, 2022)
8,614,933,824 yen
7,777,988,400 yen(7,800 yen)

659,017,396 yen

830,016,338 yen

Retained earnings carried forward

Method for calculating distribution amount

7,569,348 yen

6,929,086 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. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,234,787,500 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(958,250 units) from the balance ofunappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 65-7 of the
Act on Special Measures Concerning
Taxation, while minimizing the burden tounitholders 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. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,777,988,400 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(997,178 units) from the balance ofunappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 65-7 of the
Act on Special Measures Concerning
Taxation, while minimizing the burden tounitholders 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.

33
5

Financial Statements

Japan Prime Realty Investment Corporation(5) (5)
Statements
ofof
Cash
Statements
CashFlows
Flows

5.

(Thousands of yen)
40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)

41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)

Income before income taxes

7,893,582

8,607,969

Depreciation and amortization
Amortization of investment corporation bond issuance costs

2,128,201
15,166

2,046,347
14,672

7,084

14,727(208)
701,608(192)
710,339

Decrease (increase) in operating accounts receivable(43,613)(177,953)

Decrease (increase) in consumption taxes receivable(346,039)

346,039

Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable(2,974)
115,4635,076(17,856)

Net cash provided by (used in) operating activities

Amortization of investment unit issuance expenses
Interest income
Interest expenses

14,414(67,972)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(305,133)(109,635)

368,920(73,131)

Decrease in property, plant and equipment in trust due to sale

9,434,509

3,727,070

Increase (decrease) in accounts payable-other303－

Other, net(7,993)(470,497)

Subtotal

19,494,737

15,033,561

Decrease in intangible assets in trust due to saleInterest income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities

208

192

(700,416)(605)(716,082)(602)

18,793,924

14,317,068

Net cash provided by (used in) investing activities(752,677)(11,976,312)

Purchase of property, plant and equipment in trust
Purchase of investment securities
Payments of lease and guarantee deposits(29,160,741)(88,860)(50,954)(1,125,644)－(43,836)

Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits(279,722)
405,874(538,677)
877,788

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(781,974)
833,127(678,824)
566,303

Purchase of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

(710)

－

(29,876,637)(12,919,203)

14,400,000(4,400,000)
8,000,000(10,000,000)
2,364,727－(12,000,000)
18,500,000－(7,337,192)

13,845,913(7,233,977)

Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid

(10,500,000)－

3,027,534

2,611,935(8,055,178)

4,009,800

Cash and cash equivalents at beginning of current period

43,602,602

35,547,423

Cash and cash equivalents at end of current period

35,547,423

39,557,224

6

Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

34

Financial Statements

Japan Prime Realty Investment Corporation(6) Notes
to Financial
Statements(6) Notes
to Financial
Statements

6.

(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. Standards and Method for Asset
Valuation

2. Depreciation/Amortization
Method for Noncurrent Assets

3. Accounting for Deferred Assets

4. Standards for Recognition of
Revenues and Expenses

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

Investment securities
Other securities
Stocks and other securities with no market prices
Stocks and other securities with no market prices are stated at cost being determined by the moving averagemethod.
(1) Property, Plant and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment 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 based on
the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment Unit Issuance Expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
(1) Revenue Recognition
The details of main performance obligations concerning revenue generated from contracts with customers of JPR
and the ordinary time to fulfil said performance obligations (ordinary time to recognize revenue) are as follows.
a. Sale of real estate
For the proceeds from sale of real estate, JPR recognizes revenue when the purchaser who is a customer obtains
control of the relevant real estate as a result of JPR fulfilling its delivery obligations stipulated in the transaction
contract of the real estate.
b. Utilities income
JPR recognizes utilities income upon the supply of electricity and water, etc. to the lessee who is a customer
based on the lease agreement of real estate and details of agreements incidental to it. Of the utilities income,in the case that JPR deems itself to be an agent, the net amount obtained by deducting the amount it pays toother parties from the amount it receives as charges for electricity and gas, etc. supplied by the said otherparties is recognized as revenue.
(2) 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. Taxes on property and equipment capitalized amounted
to 6,431 thousand yen for the fiscal period ended December 31, 2021. Taxes on property and equipment capitalized
amounted to 56,401 thousand yen for the fiscal period ended June 30, 2022.
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.
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

35

7

Financial Statements

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)
1. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its main lending financial institutions primarily to minimize refinancing risks
and enhance financial stability.
(Thousands of yen)
End of 40th Fiscal Period(as of December 31, 2021)
Credit limit
Outstanding debts at end of period
Unused commitment line at end of period

End of 41st Fiscal Period(as of June 30, 2022)
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 40th Fiscal Period(as of December 31, 2021)

End of 41st Fiscal Period(as of June 30, 2022)
50,00050,000(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)
40th Fiscal Period(July 1, 2021 – December 31, 2021)

41st Fiscal Period(January 1, 2022 – June 30, 2022)

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

11,911,724
1,802,000
1,384,623

12,546,684
1,802,000
1,352,858

Parking fees

264,921278,951

Advertising fees

36,93736,602

Antenna usage fees
Other29,02045,95028,94346,012

15,475,177

16,092,051

787,919
8,725
10,473

798,305
14,092
11,17356,32042,263

Subtotal
Other rental revenues
Incidental rent income
Time-based parking fees
Cancellation charges
Income equivalent to expenses for restoration
to original condition
Other miscellaneous income

44,043

61,777

Subtotal

907,481

927,611

16,363,416,363,49494005,870
16,382,659

16,363,416,363,49494005,870
17,019,663

628,945849,905

699,677
952,258

2,422,872

2,523,554

Total rent revenue-real estate
B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance

27,25629,368

Repairs and maintenance
Property management fees
Management association accounts

532,237
289,978
612,129

469,805
307,961
630,331

2,127,848
240,253

2,045,976
287,982

7,731,428

7,946,916

8,651,231

9,072,747

Depreciation
Other
Total expenses related to rent business
C. Profits for Rent Business
(A-B)

8

36

Financial Statements

Japan Prime Realty Investment Corporation*2. Breakdown of Gain or loss on Sale of Real Estate, etc.
(Thousands of yen)
40th Fiscal Period(July 1, 2021 – December 31, 2021)
Part of land of Shibadaimon Center Bldg.
Proceeds from sale of real estate

41st Fiscal Period(January 1, 2022 – June 30, 2022)

110,000－

Cost of sale of real estate

8,838

－

Other expenses related to sale

3,835

－

Gain on sale of real estate

97,325－7,000,000－

4,980,376－

245,992－

Gain on sale of real estate

1,773,631－

Tokyo Tatemono Honmachi Bldg.
Proceeds from sale of real estate

3,600,000－

4,445,597－

Other expenses related to sale

10,600－Loss on sale of real estate

856,197－－

5,250,000－

3,727,070－－

184,700
1,338,228

40th Fiscal Period(July 1, 2021 – December 31, 2021)

41st Fiscal Period(January 1, 2022 – June 30, 2022)

JPR Umeda Loft Bldg. (40.0% co-ownership interest)
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale

Cost of sale of real estate

JPR Umeda Loft Bldg. (30.0% co-ownership interest)

Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate(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

5,000,000 units

5,000,000 units

958,250 units

997,178 units(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)
40th Fiscal Period(July 1, 2021 – December 31, 2021)

41st Fiscal Period(January 1, 2022 – June 30, 2022)

Cash and deposits

22,803,957

26,708,733

Cash and deposits in trust

12,743,466

12,848,490

Cash and cash equivalents

35,547,423

39,557,224(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)
40th Fiscal Period(as of December 31, 2021)

41st Fiscal Period(as of June 30, 2022)
6,035,459

6,118,824

Due after one year

11, 094,928

14,579,171

Total

17, 130,388

20,697,995

Due within one year

37

9

Financial Statements

Japan Prime Realty Investment Corporation(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy for 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
Certain assumptions are used in calculating the fair value of financial instruments, and there can be cases where the values may vary
based on different assumptions.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the book values and fair values as of December 31, 2021 of financial instruments, and the difference between theseamounts. Furthermore, notes on “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are omitted asthese are settled with cash and within a short period of time and thus the book value.
approximates the fair value. Notes on “Investment securities,” “Tenant leasehold and security deposits” and “Tenant leasehold andsecurity deposits in trust” are also omitted as they lack materiality.
(Thousands of yen)Book Value(Note 1)
(1)

Current portion of investment corporation bonds(2)

Fair Value(Note 1)

Difference

－

－

－

Current portion of long-term loans payable(18,500,000)(18,528,074)

28,074(3)

Investment corporation bonds(37,900,000)(38,761,615)

861,615(4)Long-term loans payable(138,500,000)(139,821,667)

1,321,667

The following are the book values and fair values as of June 30, 2022 of financial instruments, and the difference between these amounts.
Furthermore, notes on “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are omitted as these are settledwith cash and within a short period of time and thus the book value approximates the fair value. Notes on “Investment securities,”“Tenant leasehold and security deposits” and “Tenant leasehold and security deposits in trust” are also omitted as they lack materiality.
(Thousands of yen)Book Value(Note 1)

Fair Value(Note 1)

Difference(1)

Current portion of investment corporation bonds(2,000,000)(2,021,000)

21,000(2)

Current portion of long-term loans payable(16,000,000)(16,061,296)

61,296(3)

Investment corporation bonds(35,900,000)(36,269,932)

369,932(4)

Long-term loans payable(149,000,000)(148,909,766)-90,233(Note 1) Liabilities are shown in parentheses.

10

38Financial Statements

Japan Prime Realty Investment Corporation(Note 2) Method of calculation of fair value of financial instruments(1) Current portion of investment corporation bonds and (3) 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 (2) and (4) below.
(2) Current portion of long-term loans payable and (4) 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.
(Note 3) Amount of repayment of long-term loans payable or redemption of investment corporation bonds scheduled to be due subsequent to the 40th fiscal period end(December 31, 2021)(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

－

2,000,000

8,000,000－

8,500,000

19,400,000

18,500,000

21,000,000

15,000,000

23,900,000

14,000,000

64,600,000

Investment corporation bonds
Long-term loans payable

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment of long-term loans payable or redemption of investment corporation bonds scheduled to be due subsequent to the 41st fiscal period end(June 30, 2022)(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

5,000,000

3,000,000－

8,500,000

19,400,000

Long-term loans payable

16,000,000

20,000,000

21,000,000

20,900,000

13,000,000

74,100,000

Due after FourYears throughFive Years

Due after Five
Years

(Securities)
40th fiscal period (as of December 31, 2021)
Not applicable
41st fiscal period (as of June 30, 2022)
Not applicable(Derivative Transactions)40th fiscal period (as of December 31, 2021)
Not applicable as JPR entered into no derivative transactions
41st fiscal period (as of June 30, 2022)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
40th fiscal period (as of December 31, 2021)
Not applicable as JPR does not have any retirement benefit plans
41st fiscal period (as of June 30, 2022)
Not applicable as JPR does not have any retirement benefit plans(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
40th Fiscal Period(July 1, 2021 – December 31, 2021)

41st Fiscal Period(January 1, 2022 – June 30, 2022)

31.46%

31.46%

Deductible cash distributions(28.83%)(28.43%)Other(2.62%)(3.02%)

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Effective statutory tax rate
(Adjustment)(Equity Method Income and Retained Earnings)

39

11

Financial Statements

Japan Prime Realty Investment Corporation

40th fiscal period (July 1, 2021 – December 31, 2021)
Not applicable as JPR does not have any affiliated companies
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
40th fiscal period (July 1, 2021 – December 31, 2021)
Not applicable
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
2. Affiliated Companies
40th fiscal period (July 1, 2021 – December 31, 2021)
Not applicable
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
3. Sister Companies
40th fiscal period (July 1, 2021 – December 31, 2021)
Not applicable
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
4. Directors and Major Individual Unitholders
40th fiscal period (July 1, 2021 – December 31, 2021)
Not applicable
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable(Asset Retirement Obligations)40th fiscal period (July 1, 2021 – December 31, 2021)
Not applicable
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rent business.
[Related Information]
40th fiscal period (July 1, 2021 – December 31, 2021)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit are 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) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan is in excess of 90% of total
property, plant and equipment on the Balance Sheets.

1240

Financial Statements

Japan Prime Realty Investment Corporation

3. Information about Major Customers
Disclosure is omitted as sales to any single external customer account for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
41st fiscal period (January 1, 2022 – June 30, 2022)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit are 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) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan is in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer account for less than 10% of the operating revenue on the Statementsof Income and Retained Earnings.

(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban multi-use facilities forleasing in Tokyo and other regions. The following is the book value on the Balance Sheets, amount of increase (decrease) during
the period and fair value of these investment and rental properties.
(Thousands of yen)

40th Fiscal Period(July 1, 2021 – December 31, 2021)

Book Value on the Balance Sheets
Balance at Beginning of Period

41st Fiscal Period(January 1, 2022 – June 30, 2022)

439,222,516

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

458,014,900

18,792,383

7,114,101

458,014,900
574,963,000

465,129,001
593,184,000(Note 1) The book value on the Balance Sheets is the cost of acquisition less accumulated depreciation.
(Note 2) For the 40th fiscal period, the amount of increase is primarily attributable to the acquisition of part of land of Shibadaimon Center Bldg. (3,460 thousand yen), theacquisition of additional ownership of Rise Arena Bldg. (7,345,010 thousand yen), the acquisition of GRAND FRONT OSAKA (Umekita Plaza and South Building)(11,864,400 thousand yen) and the acquisition of GRAND FRONT OSAKA (North Building) (9,554,879 thousand yen), and the amount of decrease is primarily
attributable to the sale of part of land of Shibadaimon Center Bldg. (8,838 thousand yen), the sale of Tokyo Tatemono Honmachi Bldg. (4,445,597 thousand yen),
the sale of JPR Umeda Loft Bldg. (40.0% co-ownership interest) (4,980,376 thousand yen) and depreciation (2,127,848 thousand yen). For the 41st fiscal period,
the amount of increase is primarily attributable to the acquisition of Tokyo Tatemono Higashi Shibuya Bldg. (11,463,589 thousand yen), and the amount of decreaseis primarily attributable to the sale of JPR Umeda Loft Bldg. (30.0% co-ownership interest) (3,727,070 thousand yen) and depreciation (2,045,976 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 40th and 41st fiscal periods for investment and rental properties is as presented in the “Notes to Statementsof Income and Retained Earnings.”

41

13

Financial Statements

Japan Prime Realty Investment Corporation(Revenue Recognition)
40th fiscal period (July 1, 2021 – December 31, 2021)
Breakdown information on revenue from contracts with customers

Sale of real estate(Thousands of yen)

Revenue from Contracts with Customers(Note 1)
10,710,000

Utilities income (Note 3)

Sales to External Customers(Note 2)
1,870,956

787,919

787,919

Others－

15,594,740

Total

11,497,919

18,253,616(Note 1) Rent revenue subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from “Revenue from contracts with customers”
as such revenue is out of the scope of Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents proceeds fromsale of real estate and utilities income.
(Note 2) As sale of real estate is recorded as gain or loss on sale of real estate, etc. in the Statements of Income and Retained Earnings, the amount obtained by deducting
cost of sale of real estate and other expenses related to sale from proceeds from sale of real estate is indicated for sales to external customers. Furthermore, as JPR
records gain on sale of real estate for operating revenue while recording loss on sale of real estate for operating expenses, the table above indicates the amount ofgain on sale of real estate only.
(Note 3) Utilities income indicates the amount recorded as revenue upon the supply of electricity and water, etc. to the lessee who is a customer based on the lease agreementof real estate and agreements incidental to it.

41st fiscal period (January 1, 2022 – June 30, 2022)
Breakdown information on revenue from contracts with customers

Sale of real estate(Thousands of yen)

Revenue from Contracts with Customers(Note 1)
5,250,000

Utilities income (Note 3)
Others
Total

Sales to External Customers(Note 2)
1,338,228

798,305

798,305－

16,221,358

6,048,305

18,357,892(Note 1) Rent revenue subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from “Revenue from contracts with customers”
as such revenue is out of the scope of Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents proceeds fromsale of real estate and utilities income.
(Note 2) As sale of real estate is recorded as gain or loss on sale of real estate, etc. in the Statements of Income and Retained Earnings, the amount obtained by deducting
cost of sale of real estate and other expenses related to sale from proceeds from sale of real estate is indicated for sales to external customers. Furthermore, as JPR
records gain on sale of real estate for operating revenue while recording loss on sale of real estate for operating expenses, the table above indicates the amount ofgain on sale of real estate only.
(Note 3) Utilities income indicates the amount recorded as revenue upon the supply of electricity and water, etc. to the lessee who is a customer based on the lease agreementof real estate and agreements incidental to it.

(Per Unit Information)
40th Fiscal Period(July 1, 2021 – December 31, 2021)

41st Fiscal Period(January 1, 2022 – June 30, 2022)

268,875 yen

273,684 yen

8,236 yen

8,664 yen

Total net assets per unit
Net income per unit

(Note 1) Net income per unit is calculated 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 applicable14

42

40th Fiscal Period(July 1, 2021 – December 31, 2021)
7,892,977

41st Fiscal Period(January 1, 2022 – June 30, 2022)
8,607,364－
7,892,977－
8,607,364

958,250 units

993,389 units

Financial Statements

Japan Prime Realty Investment Corporation

Detailed
Schedules(7) (7)
Detailed
Schedules

7.1) Schedule of Securities
a. Stock

Issuer Name

Number of
SharesUnit Price(thousands ofyen)

Amount(thousandsof yen)Unit Price(thousandsof yen)Amount(thousands ofyen)Profit andLoss from
Valuation(thousands ofyen)

KMO Corporation

1,666

50

83,74050

83,740

－

－

Total

1,666

－

83,740－83,740－－Acquisition Price (Note 1)

Appraisal Value (Note 2)

Remarks(Note 1) The acquisition price indicates the amount that includes the expenses required for the acquisition.
(Note 2) The appraisal value indicates the book value.

b. Other securities
Type of Asset

Issuer Name

Claim for refundof funds

Knowledge Capital,a general
incorporated
association

Book Value(thousandsof yen)AccruedInterest(thousandsof yen)Prepaidinterest
accrued(thousands ofyen)

Appraisal
Value(thousands ofyen) (Note)

Profit andLoss from
Valuation(thousands of
yen)

－

5,120

－

－

5,120

－

－

－

5,120

－

－

5,120

－

－

Total
Face
Value

Total

Remarks(Note) The appraisal value indicates the book value.

2) Status of Contract Amounts, etc. and Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable43

15

Financial Statements

Japan Prime Realty Investment Corporation

3) Schedule of Assets Related to Real Estate

Asset TypeAccumulated Depreciation
Balance as of
Increase during Decrease during Balance as ofDepreciation
January 1,
Or Accumulated
the Period
the Period
June 30, 2022
during the2022
Amortization(thousands of(thousands of (thousands ofPeriod(thousands of(thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Current Assets
Property, plantand equipment(Real estate)
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

Net Balance as ofJune 30, 2022
(thousands of yen)

－

－

－

－

－

－

－

66,302,138
78,9362,077,309
9,892

－
－

68,379,448
88,82922,902,238
36,612872,3422,186

45,477,209
52,216826,696

7,447－

834,144565,442

17,244

268,702

186,134

29,381－

215,516

108,569

10,169106,946

129,361,642

10,033,168－

139,394,811－－

139,394,811

1,077

1,629

123

2,583

－

－

2,583

196,756,627

12,158,828

123

208,915,332

23,612,863

901,942

185,302,469

98,874,885

628,496

1,089,590

98,413,791

38,619,956

1,101,656

59,793,834

125,139

3,872

1,072

127,940

80,9172,048

47,022

1,980,756

38,0431,050

2,017,750

1,537,147

29,420480,602279,230

17,286

996

295,521

195,072

10,862

100,448

210,654,006－

3,094,417

207,559,589－－

207,559,589

1,865

41,065320

42,610－－42,610311,915,884

728,764

4,187,446

308,457,202

40,433,094

1,143,987

268,024,107

Total

508,672,512

12,887,592

4,187,570

517,372,534

64,045,957

2,045,930

453,326,577

Intangible Assets
Leasehold
right
Other

11,801,831－－

11,801,831－－

11,801,831

5,384

1,081

－

6,465

3,494

417

2,970

Total

11,807,215

1,081

－

11,808,296

3,494

417

11,804,801

Appraisal Value (Note)

Remarks

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

4) Schedule of Other Specified Assets
VolumeUnit Price(thousandsof yen)Amount(thousandsof yen)Unit Price(thousandsof yen)Amount(thousands ofyen)Profit andLoss from
Valuation(thousands of
yen)

1

－

710

－

710

－

－

1

－

710

－

710

－

－

Book Value
Type of Asset

Issuer Name

Claim for refund of funds

GRAND FRONTOSAKA TMO,
a general incorporated
association

Total(Note) The appraisal value indicates the book value.

16

44

RemarksFinancial Statements

Japan Prime Realty Investment Corporation

5) Schedule of Investment Corporation Bonds

Decrease
Balance as ofduring theJanuary 1, 2022
Period(thousands of(thousands of
yen)
yen)

Balance as of
CouponJune 30, 2022
Rate
Maturity Date(thousands of
(%)
yen)

Name

Issue Date

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

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

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

Twenty-fourth Series ofInvestment Corporation
Bonds (Green Bonds) (Note Jul. 31, 20191)

5,000,000－

5,000,000

0.570

Jul. 31, 2029

Twenty-fifth Series ofInvestment Corporation
Bonds (Green Bonds) (Note Nov. 26, 2020
1)

6,000,000－

6,000,000

0.510

Nov. 26, 2030

Twenty-sixth Series ofInvestment Corporation
Bonds (Note 1)

Mar. 16, 2021

3,000,000－

3,000,000

0.760

Mar. 14, 2036

Twenty-seventh Series ofInvestment Corporation
Bonds (Sustainability
Bonds) (Note 1)

Dec. 7, 2021

1,400,000－

1,400,000

0.420

Dec. 5, 2031

Twenty-eighth Series ofInvestment Corporation
Bonds (Green Bonds) (Note1)

Dec. 7, 2021

1,000,000－

1,000,000

0.670

Dec. 5, 2036

37,900,000－

37,900,000

Total

Use

Security(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

2,000,000

5,000,000

45

3,000,000－

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

8,500,000

17

Financial Statements

6) Schedule of Loans Payable
LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current
June 30, 2022
2022
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks(Note 4)

Unsecured/
Unguaranteed

Use

Remarks

Short-Term Loans Payable
Mizuho Bank, Ltd. (Note 5)

600,000－

600,000－

0.167%

Jul. 5, 2022

Mizuho Bank, Ltd. (Note 6)

7,400,000－

7,400,000－

0.166%

Jul. 5, 2022

Resona Bank, Ltd. (Note 7)

1,000,000－

1,000,000－

0.167%

Jul. 5, 2022

Resona Bank, Ltd. (Note 8)

3,000,000
12,000,000－

3,000,000－

0.167%

Jul. 5, 2022－

12,000,000－
Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Total

LenderIncrease
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2022
2022
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Long-Term Loans Payable (Note 1)
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.

4,000,000－

4,000,000－

0.400%

Mar. 30, 2022

Mizuho Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

0.646%

Dec. 5, 2029

Mizuho Bank, Ltd.

3,000,000－－

3,000,000

0.675%

Mar. 31, 2031

Mizuho Bank, Ltd.

－2,400,000－

2,400,000

0.675%

Mar. 30, 2032

Mizuho Bank, Ltd.
(Green Loan)－

1,000,000－

1,000,000

0.675%

Mar. 30, 2032

Mizuho Bank, Ltd.
(Sustainability Loan)－

600,000－

600,000

0.675%

Mar. 30, 2032

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

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.450%

Jun. 23, 2028

Sumitomo Mitsui Banking Corporation

2,500,000－

2,500,000－

1.033%

Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

4,000,000－

4,000,000－

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

1,000,000－－

1,000,000

0.245%

Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

3,000,000－－

3,000,000

0.300%

Jun. 26, 2025

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.450%

Mar. 30, 2028

Sumitomo Mitsui Banking Corporation－

2,500,000－

2,500,000

0.675%

Mar. 30, 2032

Sumitomo Mitsui Banking Corporation－

2,000,000－

2,000,000

0.600%

Mar. 28, 2031

Sumitomo Mitsui Banking Corporation－

2,000,000－

2,000,000

0.525%

Mar. 29, 2030

Sumitomo Mitsui Banking Corporation－

2,500,000－

2,500,000

0.698%

Jun. 27, 2029

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

Development Bank of Japan Inc.

2,100,000－－

2,100,000

0.572%

Jun. 27, 2029

Development Bank of Japan Inc.

800,000－－

800,000

0.600%

Jun. 25, 2030

Development Bank of Japan Inc.

2,000,000－－

2,000,000

0.600%

Dec. 3, 2030

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

Shinsei Bank, Ltd.

5,000,000－－

5,000,000

0.673%

Apr. 5, 2029

Shinsei Bank, Ltd.

1,000,000－－

1,000,000

0.675%

Sep. 24, 2030

Shinsei Bank, Ltd.

1,000,000－－

1,000,000

0.525%

Sep. 25, 2028

Shinkin Central Bank

3,000,000－－

3,000,000

0.663%

Jun. 4, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.447%

Dec. 27, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.525%

Dec. 14, 2029

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.405%

Jun. 25, 2027

18

46

(Note 4)

Unsecured/
UnguaranteedFinancial Statements

LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2022
2022
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Long-Term Loans Payable (Note 1)
The Norinchukin Bank

2,000,000－－

2,000,000

0.525%

Dec. 25, 2028

The Norinchukin Bank

2,000,000－－

2,000,000

0.525%

Dec. 14, 2029

Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

0.586%

Feb. 4, 2030

Mizuho Trust & Banking Co., Ltd.

2,000,000－－

2,000,000

0.606%

Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2030

2,000,000－－

2,000,000

0.675%

Aozora Bank, Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank, Ltd.

2,000,000－－

2,000,000

0.553%

Feb. 25, 2025

Aozora Bank, Ltd.

500,000－－

500,000

0.525%

Sep. 25, 2028

Aozora Bank, Ltd.

－

1,000,000－

1,000,000

0.525%

Apr. 5, 2030

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.480%

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.554%

Sep. 21, 2029

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

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

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.583%

Jul. 20, 2029

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Shinkumi Federation Bank

4,000,000－－

4,000,000

0.404%

Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.525%

Dec. 14, 2029

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

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.675%

Dec. 24, 2030

The Chugoku Bank, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.661%

Mar. 25, 2026

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Yamaguchi Bank, Ltd.

－

1,000,000－

1,000,000

0.675%

Mar. 30, 2032

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.816%

Oct. 6, 2023

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Kiyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Kiyo Bank, Ltd.

－

1,000,000－

1,000,000

0.675%

Mar. 30, 2032

Sompo Japan Insurance Inc.

2,000,000－－

2,000,000

0.759%

Dec. 25, 2023

Nippon Life Insurance Company

2,000,000－－

2,000,000

0.225%

Nov. 22, 2023

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.300%

Oct. 9, 2025

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.310%

Sep. 24, 2026

The Yamanashi Chuo Bank, Ltd.

1,000,000－－

1,000,000

0.600%

Apr. 30, 2030

The Yamanashi Chuo Bank, Ltd.

－

1,000,000－

1,000,000

0.600%

Apr. 5, 2032

Resona Bank, Ltd.

2,000,000－－

2,000,000

0.438%

Sep. 30, 2022

NTT TC Leasing Co., Ltd. (Note 9)

1,000,000－－

1,000,000

0.408%

May 31, 2023－

1,000,000－

1,000,000

0.600%

Mar. 30, 2032

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

Daishi Hokuetsu Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

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

0.299%

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

Mitsui Sumitomo Insurance Company,
Limited1,000,000－－

1,000,000

0.310%

Oct. 2, 2026

Sumitomo Mitsui Trust Bank Limited

1,000,000－－

1,000,000

0.691%

Mar. 25, 2026

Kansai Mirai Bank, Limited

47(Note 4)

Unsecured/
Unguaranteed

19

Financial Statements

LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2022
2022
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

0.600%

Mar. 30, 2032

(Note 4)

Remarks

Long-Term Loans Payable (Note 1)
Bank of Kyoto, Ltd.
Total

500,000－

500,000

18,500,000 10,500,000

165,000,000－
157,000,000(Note 1) 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

16,000,000

20,000,000

21,000,000

20,900,000

Unsecured/
Unguaranteed

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

13,000,000(Note 2) The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 3) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 4) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redeeming
investment corporation bonds, etc.
(Note 5) Of the 2,000 million yen in short-term loans payable that was borrowed on July 5, 2021 from Mizuho Bank, Ltd., JPR made early repayment of 1,400 million yen
on December 7, 2021 and 600 million yen on March 30, 2022.
(Note 6) Of the 7,400 million yen in short-term loans payable that was borrowed on December 24, 2021 from Mizuho Bank, Ltd., JPR made early repayments of 3,000
million yen on January 21, 2022, 1,000 million yen on February 22, 2022 and 3,400 million yen on March 30, 2022.
(Note 7) Of the 2,000 million yen in short-term loans payable that was borrowed on October 28, 2021 from Resona Bank, Ltd., JPR made early repayment of 1,000 million
yen on December 7, 2021 and 1,000 million yen March 30, 2022.
(Note 8) Of the 3,000 million yen in short-term loans payable that was borrowed on December 24, 2021 from Resona Bank, Ltd., JPR made early repayment of 1,000
million yen on March 30, 2022 and 2,000 million yen April 5, 2022.
(Note 9) The lender was changed from NTT FINANCE CORPORATION to NTT TC Leasing Co., Ltd. as the former transferred its loan claims to the latter on June 30,
2022.

20

48

Financial Statements

Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report49

Financial Statements

Japan Prime Realty Investment Corporation

50

Financial Statements

Japan Prime Realty Investment Corporation

51

Financial Statements

Japan Prime Realty Investment Corporation

Other
Notes
(Informationonly)
only)(9) (9)
Other
Notes(Information

9.

(Property and Equipment Leased to JPR)
40th Fiscal Period(July 1, 2021 – December 31, 2021)

41st Fiscal Period(January 1, 2022 – June 30, 2022)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
40th fiscal period (July 1, 2021 – December 31, 2021)
Attribute

Interested
party

Asset
CustodianName ofCompany,
etc.

Tokyo
TatemonoCo., Ltd.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

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

Real estatebusiness

3.05%

Bankingbusiness andtrust business－Transactions

Purchase ofreal estate
beneficiaryinterest
Sale ofreal estate
beneficiaryinterest
Borrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)

Account

Balance at End
of Period(thousands ofyen)

21,300,000－－

3,600,000－－－
21,777Long-term
loans
payableAccruedexpenses

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

41st fiscal period (January 1, 2022 – June 30, 2022)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Transactions

Transaction
Amount(thousands ofyen)Interested
party

Tokyo
TatemonoCo., Ltd.

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

Real estatebusiness

2.93%

Purchase ofreal estate

11,300,000

Asset
CustodianMizuho Trust& BankingCo., Ltd.

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

22

52

－
21,422

Account－
Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)－
7,000,000355