Report on Operating and Management Results
Twenty-Eighth Fiscal Period
Semi-Annual Report
July 1, 2015 – December 31, 2015

28th

8955
Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation (JPR) is a J-REIT having one of the largest asset
holdings in Japan with a combined portfolio that is focused on office properties in Tokyo* andcomplemented by urban retail properties.
Since its listing in 2002, JPR has steadily expanded its asset size while maintaining stable cash
distributions. Going forward, JPR will endeavor to further improve the quality of its portfolio
and manage its assets so that steady growth and enhancement of unitholder value is secured as it
moves ahead.
*"Office properties in Tokyo" represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku,
Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa and Saitama
Prefectures) (the same applies throughout this report).

Features of JPR

1. Proven track record in achieving steady growth andstable management since listing

2. High-quality portfolio of assets centering on office properties
in Tokyo

3. Stable financial operations
4. Strong support from five sponsor companies including
Tokyo Tatemono Co., Ltd.

Cash Distribution per Unit
Determined cash distribution (for the 28th fiscal period)¥6,588(Distribution starting on March 10, 2016)

Assets Held¥410.3 billion(End of 28th fiscal period)

Properties Owned

62 properties(End of 28th fiscal period)

Occupancy Rate at End of Period

97.4%(End of 28th fiscal period)
Yakuin Business Garden

Contents
I. Account Highlights
1. Operating Performance Topics
2. Message from Asset Manager

3
3
4

II. Overview of JPR
1. Portfolio Growth
2. Investment Strategy
3. Operational Strategy
4. Financial Strategy
5. Initiatives on Governance
6. Initiatives on Environmental Friendliness7. Overview of Portfolio Properties
8. Structure and History of JPR
9. Overview of Asset Manager

8
8
10
12
13
14
15
16
30
31

III. Asset Management Report
1. Overview of Asset Management
2. Overview of the Investment Corporation
3. Status of JPR’s Assets Under Management
4. Capital Expenditures of Owned Real Estate
5. Expenses and Liabilities
6. Acquisitions and Sales during the 28th Fiscal Period

32
32
38
40
44
46
49

7. Overview of Accounting
8. Overview of Self-Managed Investment
		 Trust Beneficiary Certificates
9. Disclosure on Corporation Owning Foreign
		 Real Estate
10. Disclosure on Real Estate Owned by Corporation
		 Owning Foreign Real Estate
11. Other50

IV. Financial Statements(1) Balance Sheets(2) Statements of Income and Retained Earnings(3) Statements of Changes in Unitholders’ Equity(4) Statements of Cash Distributions(5) Statements of Cash Flows(6) Notes to Financial Statements(7) Detailed Schedules(8) Independent Auditor's Report(9) Other Notes (Information only)

54
54
56
57
58
59
60
69
73
74

V. Investor Information

75

51
52
52
52

1

Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko
Executive Officer

Masato Denawa
Supervising Officer

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

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 28th fiscal period (July 1, 2015 – December 31, 2015) at the end of December
31, 2015, we renew our heartfelt appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio overthe medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

2I. Account Highlights

Japan Prime Realty Investment Corporation

1. Operating Performance Topics(All amounts in millions of yen unless otherwise stated)

24th Fiscal Period 25th Fiscal Period 26th Fiscal Period 27th Fiscal Period 28th Fiscal Period
ended
ended
ended
ended
ended
December 2013
June 2014
December 2014
June 2015
December 2015
Operating revenues

13,591

13,734

13,902

14,251

14,105

Ordinary income

4,899

5,073

5,239

5,566

5,746

Net income

4,954

5,072

5,238

5,603

5,749

Total cash distributions

4,954

5,073

5,239

5,603

5,751

Total assets

413,974

414,104

414,091

418,778

418,739

Total unitholders' equity

197,095

197,213

197,378

216,092

216,238

47.6

47.6

47.7

51.6

51.6

Unitholders' equity per unit (yen)238,903

239,046

239,246

247,529

247,696

Cash distribution per unit (yen)

6,006

6,150

6,351

6,419

6,588

Equity ratio (%)

Operating Revenues andNet Income

Total Assets andTotal Unitholders' Equity

15,000500,000

12,000400,000

Cash Distribution per Unit

8,000

6,000

300,000

9,000

4,000
6,000

200,000

3,000

100,000

2,000

0

24th
FiscalPeriod25th
FiscalPeriod26th
FiscalPeriod27th
FiscalPeriod28th
FiscalPeriod0

24th
FiscalPeriod25th
FiscalPeriod26th
FiscalPeriod27th
FiscalPeriod28th
FiscalPeriodOperating Revenues (million yen)

Total Assets (million yen)

Net Income (million yen)

Total Unitholders' Equity (million yen)0

24th
FiscalPeriod25th
FiscalPeriod26th
FiscalPeriod27th
FiscalPeriod28th
FiscalPeriodCash Distribution (yen)3

I. Account Highlights

2. Message from Asset Manager

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

1Financial Results of the 28th Fiscal Period Ended December 2015

Japan Prime Realty Investment Corporation (JPR) again achieved generally good financial results for the fiscal period
under review. Distribution per unit for the fiscal period came to 6,588 yen, achieving the medium-term target of 6,500
yen, which had been set a year ago, earlier than anticipated.
The good performance was attained by solid internal growth of the existing properties. At JPR, rental revenue has
shown a period-on-period increase since the 24th fiscal period ended December 2013, when the figure turned from adecrease to an increase. On top of stable occupancy at over 97%, the average unit rent has been on an upward trend.
As for the cancellations that took place in the 28th fiscal period, we worked on the leasing of vacated spaces in an
endeavor to contract at high rent levels, with a focus on revenue growth over the medium to long term. As a result,the period-end occupancy rate of the entire portfolio was
successfully increased from 96.7% of the previous fiscal
Changes in Distribution per Unit and Absolute
Rate of Change
period to 97.4%.
In terms of external growth, we have continued our efforts
on vigorously selective investments in properties that should
help enhance the quality of the portfolio in the face of themarket environment where transaction prices are soaring.
As for financial operations, we have endeavored to reduce
interest expenses to increase cash distributions, whileworking to reinforce JPR’s financial base that should allow
it to cope with changes in the financial environment.
For the next fiscal period (the 29th fiscal period ending June2016), distribution per unit is forecasted to stand at 6,630
yen. We are resolved to exert ourselves to achieve long-termand stable growth of JPR by taking advantage of the highquality of its portfolio and through our management thatmaximizes the asset value.
4

（yen）
6,800

Distribution per unit

6,588

6,600
6,351

6,400
6,150

6,200
6,000

（%）

Absolute rate of change (comparison with the 24th period)

6,006

6,419

+9.7%

6,630

14.0

(Forecast)

12.0+10.4%
10.0
8.0

+6.9%
+5.7%

6.0

5,800

4.0
+2.4%

5,600
5,400

2.0

24th
Periodended
Dec. 2013

25th
Periodended
Jun. 2014

26th
Periodended
Dec. 2014

27th
Periodended
Jun. 2015

28th
Periodended
Dec. 2015

29th
PeriodendingJun. 20160.0

Japan Prime Realty Investment Corporation2

Successful Raising of Rents Contributed to Increased Cash Distributions■■ The Office Property Leasing Market in Tokyo Expected to Show Further Recovery
In the office property leasing market in Tokyo, vacancy rates
have decreased and advertised rents have continued to riseagainst the backdrop of expanding corporate performance.
The vacancy rate in Tokyo’s business areas has fallen
below 5%, a benchmark of the supply and demand balance,
indicating that the market has entered a phase in which a fullon increase in rents can be expected. As shown in the graphto the right, the vacancy rate in the said areas fell below 5% in
July 2015, further dropping to 4.0% by December. The stockof vacant spaces, which stood at 390,000 tsubos as of thattime, may likely fall to the level before the global financial
crisis by the end of 2016. As such, the market will appear tobe even more of a lender’s market going forward, allowing
expectations for full-on recovery of the market conditions.
(Note) Prepared by TRIM based on Office Data (Tokyo Business Areas) published by Miki Shoji Co., Ltd.

Occupancy Rate Outlook of
Properties Subject to Leasing
Strengthening
Kanematsu Bldg.
Replacement of air conditioning units

79.8%(Beginning of 28th period)

95.0%(based on contracts)

Kanematsu Bldg. Annex
Replacement of air conditioning units
Installation of office automation floors

0.0%(Beginning of 28th period)

100.0%(based on contracts)

Gotanda First Bldg.
Replacement of individually-controlled
air conditioning units
Replacement of ceilings and lighting
fixtures6.9%(Beginning of 28th period)

91.4%(based on application)

Changes in the Vacancy Rate and Advertised
Rent in the Tokyo Business Areas
（%）
10.0

（thousand yen/tsubo）
25

Vacancy rate (left axis)
Advertised rent (right axis)

7.5

Expectations
growing fora further rent increase
20

5.0

2.5

0.0
2002

2004

2006

2008

2010

2012

2014

0

2016

■■ Significant Recovery of Occupancy Rates of Properties
Subject to Strengthened Leasing
Amid the office property leasing market recovery, JPR saw steadyprogress in the leasing of new tenants at the properties indicated to theleft, at which cancellations took place in the 27th fiscal period ended June
2015. The occupancy rates of these properties are anticipated to recoversignificantly in the 28th fiscal period ended December 2015 through the29th fiscal period ending June 2016.
Because these properties have relatively high levels of competitiveness inthe areas, we were able to not only fill the vacancies but also secure rent
levels considered to be fairly high in the current market environment. This
led to an increase in the average unit rent of the entire portfolio.
Behind these achievements are our strategic endeavors (valueenhancement works). TRIM’s Asset Engineering Group, comprisedof well-experienced technical experts, work to enhance added value by
accurately understanding tenant needs. These endeavors have contributed
to enhancing the property competitiveness as well as inviting tenants andincreasing the rent levels.

■■ Increase in Average Unit Rent through Endeavors to Raise Rents
At JPR, the initiatives on raising rents have securely generated an increasein cash distributions. Although the average unit rent largely stayed flat inthe 28th fiscal period due to tenant move-outs at properties in relatively
high rent zones, the figure is anticipated to increase significantly in thenext (29th) fiscal period when tenant replacement will produce positiveeffects.
Looking ahead, we believe that the new supply of office spaces willcontinue in Tokyo, causing tenant replacements to occur. However, we
will take such tenant replacements as a good opportunity to raise rents,
and work to implement leasing with a focus on rent increases over the
medium to long term.

Changes in Average Unit Rent
（hundred yen/tsubo）
146
Entire portfolio

145.3

145
143.8 143.8

144
143.2
143
142

143.2
142.6 142.8

23rd
24th
25th
26th
27th
28th
29th
Period Period Period Period Period Period Period

ended
ended
ended
ended
ended
ended
endingJun. 2013 Dec. 2013 Jun. 2014 Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016

(Note) Average unit rent has been rounded to the nearest 10 yen.

5

I. Account Highlights

3

Strategy of Vigorously Selective Investments in an Environment with Soaring Prices

The for-sale real estate market has entered a phase in which real estate prices
are rising even further, and some blue-chip office properties in Central Tokyo
are traded with investment returns standing at the 3% level.
In order to avoid acquisitions at prices more expensive than the property
value, it is increasingly important to utilize available pipelines including
those of sponsors. At JPR, endeavors to reinforce pipelines are under way
for additionally acquiring co-owned properties, etc., on top of securing
information from the sponsors. This is because, in many cases, co-owned
properties, etc. provide co-owners with preferential negotiation rights overthe co-ownership interests of other right holders and thus we can conduct
negotiated deals at a price understood to be appropriate over the medium tolong term without being exposed to excessive market competition.
The strong internal growth JPR currently enjoys is bolstered by the highquality of its portfolio. Our policy is to conduct vigorously selective
investments in properties that should contribute to the profitability andquality of the portfolio over the medium to long term, without placing
priority on short-term earnings.

Enhanced Utilization ofPreferential Negotiation Rights
Acquisition by utilizing preferential
negotiation rights
Deal at a price understood to beappropriate is possible without
being exposed to market
competition

SellerBuyer

Acquisition through bid deal, etc.
Market competition poses a riskof price hikeSellerBuyer

Achievements in Vigorously Selective Investments
Properties acquired in negotiated deals utilizing preferred negotiation rights, etc. have contributed to improved
quality of the portfolio and enhanced earnings.
NOI yield

6.8%

10.9%

5.7%

5.6%

4.2%

Omiya Prime East

Shinyokohama 2nd
Center Bldg.

Science Plaza –Yonbancho Plaza

Shibadaimon Center
Building

Shinjuku Square
Tower(initial acquisition in the
24th period and additional
acquisition in the 24th period)(additional acquisitions in
the 27th and 28th periods)(additional acquisition in
the 23rd period)

Averageof theproperties
to the left

5.8%

Acquiredproperties

4

Reinforcement of Financial Base over a Medium to Long Term on Top of Reductionin Interest Expenses

Reduction of Average Debt Costs throughRefinancing（%）

After refinancing

Before refinancing

3.0
2.39
1.80

2.0

1.41

1.35

0.94

1.0

0.87

0.0

24th
Period(Dec. 2013)
Borrowedamount:6

21.0

billion yen

1.07

25th
Period(Jun. 2014)16.5

billion yen

0.87

26th
Period(Dec. 2014)

13.0

billion yen

1.04
0.79

27th
Period(Jun. 2015)

7.0

billion yen

28th
Period(Dec. 2015)

10.0

billion yen

At JPR, interest expenses (average debt costs) have been
decreased due to refinancing of debts that mature ineach fiscal period, contributing to an increase in cash
distributions.
As a result of the refinancing conducted in the 28th fiscal
period, the average maturity of the refinanced loans waslengthened from 3.7 years to 7.8 years and the averageborrowing interest rate was reduced from 0.94% to 0.79%,
compared with the relevant loans before refinancing.
In addition to such reductions in interest expenses, wework to further lengthen the maturity of debts anddiversify repayment dates in the face of the favorable
financing environment. By doing so, we endeavor tofurther strengthen the financial base that should allow
JPR to withstand financing risks that may arise in the
future.

Japan Prime Realty Investment Corporation

5

In Pursuit of Stable Long-Term Growth of Cash Distributions

Cash distributions of JPR continued to grow from the phase of “maintaining 6,000 yen per unit under normal
operation,” achieving the medium-term target of 6,500 yen in the 28th fiscal period. Going forward, JPR will beentering the higher phase of “stable growth over the long term.”
To secure continuous growth, what matters is to conduct management that should maximize the quality and asset
value of the portfolio. Although the office property leasing market is expected to show full-on recovery, we will notplace priority on expanding the asset size. Instead, we will securely implement such measures as maintaining highoccupancy, raising rents in a steady manner and carrying out vigorously selective investments at appropriate prices. In
our view, this approach represents the real management capability.

Growth of Distribution per Unit
Growth to
6,500 yen

Maintain
6,000 yen
(yen/unit)
7,000

Further stable growth

Actual results of distribution per unit

6,588
6,500

6,630

6,419
6,351

6,150
6,093

6,031

Initiatives by JPR

6,006

6,000

Endeavors to recover to andmaintain 6,000 yen by
offsetting decreased rents byincreased revenue throughexternal growth

Endeavors to achieve growth
toward 6,500 yen mainly
through internal growth byincreasing the occupancy
rate and raising rents, among
other measures

22nd
Period23rd
Period24th
Period25th
Period26th
Period27th
Period28th
Period(Dec. 2012)(Jun. 2013)(Dec. 2013)(Jun. 2014)(Dec. 2014)(Jun. 2015)(Dec. 2015)

Internal growth
Proactively work to raise rents
External growth
Carry out vigorously selective investments
Financial strategy
Simultaneously achieve longer maturity
and reduced costs
29th
PeriodTarget(Jun. 2016) (Forecast)7

II. Overview of JPR

1. Portfolio Growth
Occupancy Rate at End of Period (%)
100

96.3

94.1

95

93.4

93.5

92.7

93.2

95.1

95.4

97.2

98.0

98.6

99.0

98.4

97.5

90
85

Asset Size, etc. and Results of Distributions per Unit (billions of yen)
400
Office properties in Tokyo

Office properties in Other Cities

Retail properties

350

300
275.1
245.3

250

197.6

200

202.6

209.2

179.6

125.7
100

50

0

40.7
12.5
14.9
13.2

92.1

94.5

40.1

41.5

38.8

39.7

13.2

13.2

52.7
39.7
33.2

139.6

99.2
77.4

100.1

38.2

47.9
38.2

135.7

108.2

114.7

43.1

43.1

43.1

93.9

93.9

96.1

100.1

91.2

57.5

43.9

222.4

100.1

163.6
150

251.9

47.9

40.4

48.3

45.2

45.2

50.0

57.2

63.8

45.2

77.0

Nov. 16, 2001 End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun.
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
Start of
1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period
management
Number of
13
properties
Total number
133
of tenants
Leasable floor
94,935space (m2)Distribution–
per unit (yen)

25

27

30

32

38

42

42

42

44

46

48

49

50

281

311

324

357

437

496

459

441

462

479

491

517

537

162,739

168,987

201,808

218,734

256,329

273,330

281,408308,205

315,156

337,382

361,574

373,609383,491

2,545

6,912

6,873

5,738

6,081

6,671

6,370

6,411

6,509

6,873

6,996

6,671

7,122

Property Diversification
Retail in Tokyo
15.5%

Retail 23.2%

Retail in Other Cities
7.7%
Office in Other Cities
9.2%

Target investment ratio by area
Tokyo:
80 - 90%
Other Cities: 20 - 10%
Target investment ratio by asset class

Other Cities Tokyo
16.9% 83.1%

Office in Tokyo
67.6%

Office 76.8%

8

Portfolio Management Standards

Office: 70 - 90%
Retail: 30 - 10%(Note) 	The figures in the graph to the left show the investment ratios, which represent the ratiosof the total acquisition price of properties in respective categories to the total acquisition
price of the entire portfolio, rounded to the first decimal place.

Japan Prime Realty Investment Corporation

96.8

96.4

96.4

95.5

93.5

94.7

95.6

94.1

94.9

96.9

96.5

97.8

97.0

96.7

404.7

404.7

405.5

409.5

410.3

97.4

391.9

398.6

271.9

271.9

272.7

277.5

259.2

265.8

276.7

259.2

380.9
341.5

341.5

344.9

331.2
299.4

310.6

280.6

141.6

172.9

39.4

99.5

184.1

209.5

219.8

219.8

223.2

31.1

31.1

26.5

26.5

26.5

26.5

26.5

37.5

37.5

37.5

37.5

37.5

37.5

37.5

95.3

95.3

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec.
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period 22nd Period 23rd Period 24th Period 25th Period 26th Period 27th Period 28th Period

52

51

53

55

56

56

57

58

59

60

62

62

62

62

62

499

476

476

460

479

493

501

502

534

564

610

628

632

647

650

383,215

393,532

400,751

410,326

420,544421,371423,311434,340

450,943

460,452

467,207467,175

468,232

475,007476,352

7,092

3,731

6,933

6,770

5,680

5,611

5,876

6,430

6,093

6,031

6,006

6,150

6,351

6,419

6,588

(Note 1) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.
(Note 2)	The number of tenants at end of period is counted as follows: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in
multiple buildings, the tenant is counted in plural.
(Note 3) 	For Shinjuku Square Tower, each compartmentalized owner leases respective exclusive space to Tokyo Tatemono Co., Ltd. in a lump sum, and Tokyo Tatemono subleases the space tosublessees. Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted space of offices, shops and warehouses that are leased by Tokyo Tatemono andcan be sublet, by JPR’s rent distribution rate, while the leased floor space for calculating the occupancy rate is calculated by multiplying the floor space sublet to sublessees by the 1tribution
rate. Both figures are rounded to the second decimal place. The rent distribution rate as of the end of the 28th fiscal period was 69.72217%. In addition, the number of sublessees is deemed tobe the number of tenants for the building.
(Note 4) 	The tenants of Shinjuku Center Bldg., the residential section of Science Plaza – Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements
have been executed where the rent paid by the tenants fluctuates in accordance with the lease conditions of the sublessee. Accordingly, the total leasable floor space and the occupancy rate ofthese buildings indicate those for the sublessees of the tenants, and the number of the sublessees is deemed as the number of their tenants.
(Note 5) 	When the contracted floor space and the floor space for calculating rents differ, the latter was treated as the leased floor space through the 10th fiscal period. Since the 11th fiscal period,
however, the contracted floor space has been used as the leased floor space.
(Note 6) The occupancy rate at end of period has been rounded to the first decimal place.
(Note 7) The total leasable floor space has been rounded off to the nearest integer.

9II. Overview of JPR

2. Investment Strategy
JPR is resolved to continuously work on investments focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investment in retailproperties as well as office properties in regional cities that are expected to generate relatively high yields.

Focusedinvestment in
office properties
in Tokyo

Vigorously
selective
investment inretail properties
as well as officeproperties inregional cities

Improve the quality of the portfolio by making investments focused on office properties inTokyo that are expected to contribute to long-term growth
Compared with other regional cities, Tokyo allows expectations for more stable occupancy and higher
rent levels, and is believed to offer larger rooms for an increase of rents when the leasing market showsa recovery trend. Looking ahead, JPR will continue to make investments focused on office properties
in Tokyo, with an aim to further improve the quality of its portfolio and enhance its growth potential
in the recovery cycle of the market.

For retail properties as well as office properties in regional cities, work to invest in strictly
selected blue-chip properties that can keep stable revenues at a certain level
While securing growth potential by making focused investment in office properties in Tokyo, JPR will
make vigorously selective investments in urban retail properties with long-term, fixed-rent contracts
and in large office properties in regional cities having a high competitive advantage in the areas, inorder to complement the stability of earnings from the entire portfolio.

Changes in Investment Ratios by Asset Class and Area
The investment ratio of office properties in Tokyo at the end of the 28th fiscal period increased by 24.1% from the endof the 1st fiscal period as a result of focused investment in such properties.
End of 1st Fiscal Period (June 30, 2002)

End of 28th Fiscal Period (December 31, 2015)
Retail in
Other Cities
7.7%
Office in
Other Cities
9.2%

Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

Office in
Tokyo
43.5%

Retailin Tokyo
15.5%

Increase in investment ratio
of office properties in Tokyothrough focused investment:

Officein Tokyo

67.6%+24.1%(Note) 	The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

Portfolio Management Standards of JPR

10

Target investment ratio by area

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

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

Japan Prime Realty Investment Corporation

In the for-sale real estate market, transactions of blue-chip properties have been rather limited. Given
the situation, JPR will work to invest in blue-chip properties by fully implementing various acquisition
strategies based on its high sourcing abilities while utilizing sponsor support.
Utilization of sponsor
support from the Fuyo
Group companies
including Tokyo
Tatemono

Supply of blue-chip properties among office properties in Tokyo is inadequate in the for-salereal estate market, and their acquisition opportunities are rather limited.

Investment strategies
based on diversified
property acquisition
methods and highsourcing abilities

To acquire properties from third parties other than the sponsors, JPR exercises its highsourcing abilities and takes advantage of various information channels to gain access to
wide-ranging property information.

JPR will take advantage of support from Tokyo Tatemono Co., Ltd. and other sponsors tosecure opportunities to invest in blue-chip properties at reasonable price levels without being
exposed to excessive competition in the market.

For properties with co-ownership or compartmentalized ownership, JPR implements
various methods to acquire properties, including acquisition of additional equity by utilizing
preferential negotiation rights.

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

The Otemachi Tower(Land with Leasehold Interest)

Yakuin Business GardenTokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance

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

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

Japan Prime Realty
Investment Corporation(securities code: 8955)

Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its
sponsors, etc.(Note) and that of properties acquired fromthird parties (total of properties acquired based on theinformation provided by the sponsors and those acquired
other than from the sponsors, etc.) are almost equal,
standing at 49.7% for the former and 50.3% for the latter(on an acquisition price basis).
JPR will work to increase property acquisition
opportunities and conduct vigorously selective investmentsin blue-chip properties by building sourcing abilities on its
own instead of depending solely on sponsor support.
(Note)	Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment.

Transactions with third parties

50.3%

Properties acquired
other than fromsponsors, etc.

30.9%
19.4%

Properties
acquired fromsponsors, etc.

49.7%

Properties acquired
based on information
provided by sponsors

11II. Overview of JPR

3. Operational Strategy
JPR endeavors to implement its leasing strategies focused on maintaining and increasing the occupancyrate, with an aim to keep revenues from the portfolio stable in a continuous manner.

Organizational
reinforcement ofleasing activities

Tokyo Realty Investment Management, Inc. (TRIM) has established a group that supervises leasing,which implements leasing strategies that are based on property characteristics. Endeavors arebeing exerted to enhance the leasing framework by not only reinforcing coordination with property
management companies but also receiving support on leasing and obtaining market information frommajor brokerage firms, so that JPR can provide lease terms and conditions that take into account themarket conditions, accelerate decision-making and take other measures to strengthen leasing.

Maintenanceand improvementof tenantsatisfaction

TRIM periodically conducts questionnaire surveys to tenants, and works to improve tenantsatisfaction by grasping comments, requests and other feedback from tenants and promptly
responding. By doing so, TRIM aims to prevent move-outs of existing tenants and encourage themto expand office spaces in the same buildings or the upward revision of rents, so as to secure stableearnings of JPR over the medium to long term.

Strategic valueenhancement
works

TRIM has established a group dedicated to construction management, environmental friendlinessand other matters, reinforcing its endeavors on the promotion of higher energy efficiency, responses
to business continuity plans and environmental awareness and other initiatives that are strongly
requested by society. In addition, while working to enhance NOI and tenant satisfaction, TRIM
strategically conducts value enhancement works that should strengthen competitive advantages ofproperties as well as help attract tenants.

Changes in Occupancy Rate
Endeavors to reinforce leasing activities and enhancetenant satisfaction successfully generated results andthe period-average occupancy rate remaining at a highlevel of 97.4%.

（%）
98.0

Period-Average Occupancy Rate

96.0
94.0

94.0%

95.0% 94.8%
94.4%

19th
Period20th
Period

96.9% 97.0% 97.2%

97.5% 97.4%

24th
Period27th
Period

95.6%

92.0
21st
Period22nd
Period23rd
Period25th
Period26th
Period28th
Period(Jun. 2011) (Dec. 2011) (Jun. 2012) (Dec. 2012) (Jun. 2013) (Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015)

Examples of Renewal Works
JPR has been strategically conducting value enhancement works that should lead to invitation of new tenants andimprovement in tenant satisfaction.
Examples of works conducted in the 28th fiscal period include renewal works at Shinjuku Center Bldg. and
Kawaguchi Dice Bldg., focusing on refurbishment of interior furnishings at the common areas of each floor.
At Shinjuku Center Bldg., floor carpet tiles were renewed and wall painting was replaced with polyvinyl chloride
sheeting to further enhance the high-grade atmosphere. At Kawaguchi Dice Bldg., on the other hand, the common
areas of the floors dedicated for restaurants and eateries were renovated, leading to an enhanced ability to attract
customers.
Refurbishment of interior furnishings in the common
areas at Shinjuku Center Bldg.
Before12

After

Refurbishment of interior furnishings in the common areas
at Kawasaki Dice Bldg.
BeforeAfterJapan Prime Realty Investment Corporation

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

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debt largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixed interest ratedebts at 95% or more.
[Status of Corporate Credit Ratings Assigned to JPR]

[Major Financial Indicators]
End of 27th
Period(Jun. 30, 2015)

End of 28th
Period(Dec. 31, 2015)

Ratio of interest-bearing
debts to total assets

42.1%

42.1%

Ratio of long-term, fixedinterest rate debts

99.4%

99.4%

Issuer rating(Outlook)

Rating firm

R&I

AA- (Stable)(Rating and Investment Information, Inc.)

S&P

Long-term:A (Stable)

Short-term:

A-1(Standard & Poor's Ratings Japan K.K.)

Changes in Average Maturity of Debts and Average Debt Cost
JPR is working to lengthen the maturity of debts while reducing the debt cost.
28th Period Results
Average debt cost

Average debt cost (left axis)
(%)
1.8
1.6

Average maturity of debts (right axis)

1.57

0.79 %
Average contract length

7.0

7.8 years

6.0

1.53

5.0

1.44

1.4

(years)(Note) Short-term loans payable are excluded.

1.27
1.2

4.0
1.21

1.19

3.0

3.4
years

3.5
years

3.8
years

3.9
years

4.0
years

4.0
years

23rd Period(Jun. 2013)

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

00(Note) 	Average contract length is a weighted average calculated by dividing the contracted periods to the repayment dates of new debts by the balance of the said debts. For the definitions ofrespective terms and the calculation methods of respective figures, please refer to 1. Overview of Asset Management in III. Asset Management Report.

Changes in Unrealized Gains
Unrealized gains haveincreased, with appraisal value
increasing in accordance withthe recovery of the real estatemarket conditions.

End of 27th
Period(Jun. 30, 2015)

No. of Properties
Appraisal ValueBook Value at End of Period
Unrealized Gains
Ratio of Unrealized Gains

End of 28th
Period(Dec. 31, 2015)

62
62
401.9 billion yen 411.4 billion yen
392.6 billion yen 392.3 billion yen
9.3 billion yen 19.1 billion yen
2.4 %
4.9 %

Change+9.5 billion yen-0.2 billion yen+9.7 billion yen+2.5 % points(Note) 	Unrealized gains (losses) represent the amount obtained by subtracting book value at end of period from appraisal value.

13II. Overview of JPR

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

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

Members of the Board of JPR

Executive Officer:

Hirohito Kaneko (attorney)

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

Shareholder Composition of TRIM
real estateTokyo Tatemono

real estate

Shareholding ratio:

40%

Taisei Corporation

Yasuda Real Estate

Shareholding ratio:

20%

20%

Shareholding ratio:

financefinance

Meiji Yasuda Life Insurance

Shareholding ratio:

construction

10%(Asset Manager)
Tokyo Realty Investment
Management, Inc.

Sompo Japan Nipponkoa Insurance Inc.

10%

Shareholding ratio:

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

Review, screening

Compliance Subcommittee

Decision on acquisition policy

Investment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Final decision on acquisition

Compliance Committee
JPR’s Board of Directors
Investment Subcommittee

President and CEO
Corporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager
Special member(outside attorney)

14

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 be cases where approvalby the Board of Directors and consent by JPR are required as designated in the Act on
Investment Trusts and Investment Corporations.

Japan Prime Realty Investment Corporation

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

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

Properties withexceptionally highenvironmental &social awareness

Properties
with highenvironmental &social awareness

Olinas Tower Yakuin Business
GardenJPR Crest
BYGS Shinjuku
Takebashi Bldg.
Bldg.

DBJ Green Building Certification

Properties
with excellent
environmental &social awareness

JPR Ueno East
Bldg.

JPR NahaBldg.

JPR Sendagaya Shinagawa
Bldg.
Canal Building

Properties
with sufficientenvironmental &social awareness

Rise Arena
Bldg.

JPR Nihonbashihoridome Bldg.

Omiya Prime
East

Yume-ooka
Office Tower

Kanematsu Oval Court Ohsaki
Bldg.
Mark West

DBJ awards five levels of certification to office buildings in accordance with the degree ofenvironmental and social awareness they demonstrate.

Continuous Participation in GRESB Survey❚❚   JPR has participated in the GRESB Survey, which analyzes and evaluatesenvironmental considerations and sustainability, since 2011. In the survey
conducted in 2015, JPR was designated as “Green Star,” the highest
ranking of the four evaluation categories, and was also selected as Sector
Leader (the first rank) in the Diversified (Retail/Office) sector in Asia.
❚❚   JPR believes that its endeavors have been recognized as a result of having
diligently worked to reduce energy consumption by establishing a consistentsystem among all business partners involved in building operations, fromthe Asset Manager to property managers and building maintenancecompanies, under a clear environmental policy as well as asking for cooperation
with tenants.

GRESB, which stands for Global Real
Estate Sustainability Benchmark, isa benchmark system for analyzing
and evaluating sustainability interms of environmental friendlinessand social nature. It is based on
surveys conducted by a private
sector group established primarily
by major pension funds in Europe.

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

7. Overview of Portfolio Properties
List of Properties (62 Properties for the Entire Portfolio)
Central Tokyo (30 Properties)
Property
Number

Property Name

Location

Acquisition Date

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

4.0

8,011.75

3.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

5.8

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

3.7

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.37

4.4

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

1.0

3,265.34

7.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.7 14,468.38

6.8

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,241.22

7.3

Oct. 15, 2003

1,800

0.4

Apr. 15, 2005

1,120

0.3

1,937.40

5.2

2,920

0.7

A-8

Fukuoka Bldg.

Chuo-ku, Tokyo

Total
A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,235.05

4.9

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.9

4,088.44

3.5

Jul. 2, 2004

10,0002.4

Sep. 26, 2008

180

0.0

Mar. 25, 2015

4,000

1.0 19,284.71

1.3

Oct. 21, 2015

786

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

Office0.2

Total

14,966

3.6

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.2

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,216.93

3.1

15,121

3.7

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

0.2

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

1,253.39

4.7

21,0005.1

8,863.98

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

1.3

Jul. 14, 2008

3,760

0.9

3,405.73

A-16

Shinagawa Canal Bldg.

6.0

Minato-ku, Tokyo

Dec. 19, 2008

1,870

0.5

1,700.57

A-17

5.3

Rokubancho Bldg.

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.7

2,488.36

7.7

A-18

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

2.0

4,760.09

6.8

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.3

3,551.01

6.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.2

5,299.89

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.7

6,177.74

2.6

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,899.27

4.5

A-23

The Otemachi Tower (Land with
Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.8 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.27

3.1

Dec. 6, 2013

3,420

0.8

800

0.2

5,401.46

5.6

4,220

1.0

A-25

Shibadaimon Center Building

Minato-ku, Tokyo

Jul. 30, 2014
Total

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0002.9

8,076.85

5.8

A-2

JPR Daikanyama

Shibuya-ku, Tokyo

Oct. 5, 2004

2,160

0.5

651.2912.5

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

1,027.33

5.4

2,347.81

1.6

1,101.92

3.0

53.2 155,531.02—

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

Mar. 24, 2006

4,275

1.0

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,740

0.7

3,400

0.8

Total
A-5

Yurakucho Ekimae Bldg. (Yurakucho
Itocia)Subtotal

Chiyoda-ku, Tokyo

Aug. 27, 2008

¥218,192(Note 1) The table above shows properties owned by JPR as of December 31, 2015.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.

16

PML (%)

A-1

Total

RetailAcquisitionPrice(in millions)Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.4

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.6

5,536.17

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

6.7

Sep. 25, 2002

920

0.2

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013
Total

570

0.1

5,284.75

10.5

1,490

0.4

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

2.0 15,420.09

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.8

6,476.53

3.9

Sep. 30, 2005

888

0.2

2,300

0.6

4,683.40

4.1

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

3,188

0.8

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.4

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.6 12,002.70

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,300

7.6 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.7

6,494.09

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.5

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.5 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,260

1.8 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.1 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

Total

RetailPercentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

B-1

B-5

OfficeAcquisitionPrice(in millions)

Subtotal

15,0803.7 12,116.35

5.9¥122,891

30.0 189,771.96—

AcquisitionPrice(in millions)

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

PML (%)

Other Cities (15 Properties)
Property
NumberC-1

OfficeLocation

Niigata Ekinan Center Bldg.

Niigata, Niigata

Acquisition Date

Nov. 16, 2001

¥2,1400.5

5,326.88

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,163.07

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,568.43

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.8

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.38

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.7

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,930.71

5.0

C-18

JPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 11, 2004

1,920

0.5

3,290.42

0.8

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.7 16,654.33

1.6

May 15, 2003

8,000

2.0

C-1
RetailProperty NameJPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

1.2 18,586.97

Total

13,000

3.2

4.3

C-3

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.3

5,303.98

11.5

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.8 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.5

2,485.79

8.4

Subtotal¥69,223

16.9 131,049.69

—

Total

¥410,306

100.0 476,352.67

2.0(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the second decimal place.
Furthermore, as the company revised its evaluation method to analyze the risk of earthquakes in October 2014, the indicated figures have also been revised accordingly.

17

II. Overview of JPR

Portfolio Map
A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-4
A-12

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

Tokyo

A-21
Shibuya Ward

A-5

Ichigaya

A-23

Harajuku

A-3
A-1

Shinbashi

A-18

A-2 A-1

A-13

A-8
A-19
A-5 A-22

Chuo Ward

A-25

Shibuya

A-20
A-3

Minato Ward

Hamamatsucho

A-2

TamachiA-15

GotandaA-6
Shinagawa

A-7

A-16

A-10
OhsakiShinagawa Ward
RetailOffice
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-8
● A-9
● A-10● A-11● A-12● A-13Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex● A-14● A-15● A-16● A-17● A-18● A-19● A-20● A-21● A-22● A-23

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

A Central Tokyo
Chiyoda Ward
Chuo Ward

18

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

■ A-1
■ A-2
■ A-3
■ A-4
■ A-5

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

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

Musashiurawa

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

Minamiurawa
Kawaguchi

B-6
B-3

SAITAMA

Matsudo

CHIBA

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9
Shinjuku

Tachikawa

B-11
B-1

Ueno

Funabashi

B-7

Kinshicho

Tokyo

Shibuya

Chiba

B-2

ShinagawaMusashikosugi

B-4

Musashikosugi

KANAGAWA
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

Retail
■ B-1
■ B-3
■ B-4
■ B-5

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

B-3

Kamiooka

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

OSAKA

Retail
■ C-1
■ C-3
■ C-4
■ C-5

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

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

C-9

C-4
C-17
C-1
C-3
C-5

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
WAKAYAMA

C-13
19

II. Overview of JPR

Property Acquired in the 28th Fiscal Period

A-11

Shinjuku Square Tower (additional ownership)
Shinjuku Ward, Tokyo

JPR realized additional acquisition of a blue-chip office property
in central Tokyo by utilizing the preferential negotiation rights
among co-owners.

1. Property Overview
Location22-1 Nishishinjuku 6-chome, Shinjuku-ku, Tokyo

Total Site Area 8,409.52 m2 (for the entire redevelopment project)

Total Floor Space

78,796.00 m2 (for the entire redevelopment project)

Structure/Floors

S, RC, SRC B4/30F

Completion

October 1994

Property Manager

Tokyo Tatemono Co., Ltd.

2. Transaction Summary
SellerFujita Corporation

Acquisition Price¥786 million

Appraisal Value¥921 million (as of October 1, 2015)

Acquisition Date

October 21, 2015

3. Assumed Income
NOI Yield

4.4 %CentralPark
The entrance with a sense of spaciousness

Shinjuku
Exit

/
Line
ew ay
N
Keio i SubwLine
Toe njuku
Shi
Line
Keio

JR Chuo Line
JR Ya
mano
te LinSeibu
Shinjuku
Sta.

Shinjuku
Nishiguchi
Sta.
Shinjuku
Sta.

Shinjuku
Sta.
Shinjuku
Sta.
Shinjuku
Sta.

Odakyu Line

Tokyo Metropolitan
Government OfficeedoToei Subway O Line

Junis
o-do
ri S
t.

A courtyard full of greenery

Shinjuku Front
Tower
Shinjuku Grand
NarukoTower
Sakashita
Nishi-Shinjuku
NarukoSta.
Tenjinshita
Om
I-Town Shinjuku Square
eK
To
aid
Tower
oS
Ma kyoHiltont.
run Me
Green
t
Tokyo
o
uc ro
Tower
hi
Lin
Shinjuku CentraleKumanoPark North
Shrine Mae
Tocho-mae
Toei
Subw
Sta.
ay Oedo Linee(Note)	The NOI yield of the property has been calculated by dividing the assumed income for 12months based on the rent level, the occupancy rate and other factors upon acquisition, by
the acquisition price.

An 8 to 9-minute walk from Nishishinjuku Station on the Tokyo Metro
Marunouchi LineA 7 to 8-minute walk from Nishishinjuku 5-chome Station on the Toei
Subway Oedo Line
Common area space with ample room and comfort

20

Japan Prime Realty Investment Corporation

Portfolio Properties
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price¥2,874 million
Site Area
Total Floor Space

679.06 m2
4,351.46 m2

Structure/Floors

SRC B1/8F
CompletedFebruary 1993
Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price¥2,100 million
Site Area
Total Floor Space
Acquisition Price

Structure/Floors¥16,276 million
Site Area

1,751.13 m

2

14,995.09 m

2

Total Floor Space

A-4

550.06 m2
4,117.70 m2

Structure/Floors

S/RC/SRC B2/13F

SRC/RC B1/8F

Completed

CompletedFebruary 1993

December 1989

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

Tokyo Tatemono Co., Ltd.

A-6

Chiyoda Ward, TokyoMS Shibaura Bldg.
Minato Ward, Tokyo

Acquisition Price¥2,420 million
Site Area
Total Floor Space

657.80 m2
5,152.98 m2

Structure/Floors

SRC B1/9F
Completed

October 1984
Property Manager

Tokyo Tatemono Co., Ltd.

A-5

JPR Crest Takebashi Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed¥4,000 million
636.90 m2
4,790.68 m2
SRC B1/9F
September 1999

Acquisition Price
Site Area

Property Manager

Tokyo Tatemono Co., Ltd. (Note)(Note) Changed from Yasuda Real Estate Co.,
Ltd. as of September 1, 2015

Structure/Floors¥11,200 million
8,992.18 m2

Total Floor Space

31,020.21 m

2

SRC/RC/S B2/13F
CompletedFebruary 1988
Property Manager

Tokyo Tatemono Co., Ltd.

21

II. Overview of JPR

Portfolio Properties
Central Tokyo
A-7

OfficeRetailGotanda First Bldg.

A-8

Shinagawa Ward, Tokyo

Fukuoka Bldg.
Chuo Ward, Tokyo

Acquisition Price

Acquisition Price¥2,920 million
Site Area

1,551.19 m
Total Floor Space

¥2,920 million
Site Area

2

Total Floor Space

10,553.34 m2

Structure/Floors

SRC/RC B2/11F

SRC B2/10F
Completed

July 1989

May 1990

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ichigaya Bldg.

Tokyo Tatemono Co., Ltd.

A-10

Chiyoda Ward, Tokyo

Oval Court Ohsaki Mark West
Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price¥5,100 million
Site Area

1,058.04 m
Total Floor Space

¥3,500 million
Site Area

2

Total Floor Space

5,888.82 m2

Structure/Floors

4,006.00 m2
28,575.80 m2

Structure/Floors

SRC B1/9F

S/SRC B2/17F

Completed

Completed

March 1989

June 2001

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

A-11

11,627.74 m2

Structure/Floors

Completed

A-9

1,302.17 m2

Shinjuku Square Tower

Tokyo Tatemono Co., Ltd.

A-12

Shinjuku Ward, TokyoBYGS Shinjuku Bldg.
Shinjuku Ward, Tokyo

Acquisition Price¥10,180 million
Site Area

28,409.52 m (entire redevelopment project)
Total Floor Space
78,796.00 m2 (entire redevelopment project)
Structure/Floors
S/RC/SRC B4/30F
Completed

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

A-13

Across Shinkawa Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price¥710 million
Site Area
Total Floor Space

858.48 m2
5,535.90 m2
Acquisition Price

Structure/Floors
Completed

Site Area

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

22

Structure/Floors¥15,121 million

S/SRC B2/10F

3,522.46 m2

Total Floor Space

25,733.10 m

2

SRC B2/14F
Completed

April 1985
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-14

OfficeRetailShinjuku Center Bldg.

A-15

Shinjuku Ward, Tokyo

Minami Azabu Bldg.
Minato Ward, Tokyo

Acquisition Price¥3,760 million
Site Area
Total Floor Space

778.09 m2
4,570.63 m2

Structure/Floors

S

9F

Completed

June 1992
Property Manager

Tokyo Tatemono Co., Ltd.

A-16

Shinagawa Canal Bldg.
Minato Ward, Tokyo

Acquisition Price¥1,870 million
Site Area
Total Floor Space
Acquisition Price

Structure/Floors¥21,000 million
Site Area

2
2

SRC/RC/S B5/54F

A-17

S

Completed

October 1979

July 2008
Property Manager

Tokyo Tatemono Co., Ltd.

Rokubancho Bldg.

Tokyo Tatemono Co., Ltd.

A-18

Chiyoda Ward, TokyoJPR Harajuku Bldg.
Shibuya Ward, Tokyo

Acquisition Price

Acquisition Price¥2,800 million
Site Area¥8,400 million
Site Area2

716.95 m
Total Floor Space

Total Floor Space

4,205.09 m2

Completed

October 1991

March 1989

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Kyobashi Bldg.

Tokyo Tatemono Co., Ltd.

A-20

Chuo Ward, Tokyo

Acquisition Price

JPR Nihonbashi-horidome Bldg.
Chuo Ward, Tokyo

Acquisition Price¥5,250 million
2¥5,100 million
Site Area

547.10 m
Total Floor Space

6,466.94 m2
SRC B1/9F

SRC B3/7F
Completed

Site Area

1,205.07 m2

Structure/Floors

Structure/Floors

A-19

B1/8F

Completed

Property Manager

176,607.89 m

5,216.21 m2

Structure/Floors

14,917.11 m
Total Floor Space

828.82 m2

4,419.79 m2

Structure/Floors

Total Floor Space

937.59 m2
7,190.82 m2

Structure/Floors

SRC/S B1/10F
Completed

SRC B1/9F
Completed

January 1981
Property Manager

Tokyo Tatemono Co., Ltd.

June 2002
Property Manager

Tokyo Tatemono Co., Ltd.

23

II. Overview of JPR

Portfolio Properties
Central Tokyo
A-21

OfficeRetailJPR Sendagaya Bldg.

A-22

Shibuya Ward, Tokyo

Ginza Sanwa Bldg.
Chuo Ward, Tokyo

Acquisition Price¥3,400 million
Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F
Completed

October 1982
Property Manager

Mitsubishi Jisho Property Management Co., Ltd.

A-23

Acquisition Price

2,217.49 m2

Total Floor Space

2

7,683.19 m

A-24

Chiyoda Ward, Tokyo

Structure/Floors¥15,050 million
Site Area

The Otemachi Tower (Land with Leasehold Interest)

S 8F
CompletedMay 2009
Property Manager

Tokyo Tatemono Co., Ltd.

Science Plaza - Yonbancho Plaza
Chiyoda Ward, Tokyo
Acquisition Price¥2,660 million
Site Area

5,289.01 m2

Total Floor Space

24,560.36 m2

Structure/Floors

S/SRC/RC B2/12F
CompletedFebruary 1995
Property Manager

Nomura Real Estate Partners Co., Ltd.(Note)(Note) Changed from Yasuda Real Estate Co.,
Ltd. as of September 1, 2015

A-25

Shibadaimon Center Building

Acquisition Price
Site Area–
Completed

Total Floor Space

11,034.78 m2–

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

A-2

Minato Ward, Tokyo

Structure/Floors¥36,000 million

JPR Daikanyama
Shibuya Ward, Tokyo

Acquisition Price¥4,220 million
Site Area
Total Floor Space2¥2,160 million

1,915.50 m

Site Area

11,419.93 m2

Total Floor Space

S/SRC B1/10F

Structure/Floors

Structure/Floors
Completed

July 1993
Property Manager

Nomura Real Estate Partners Co., Ltd.(Note)(Note) Changed from Yasuda Real Estate Co.,
Ltd. as of September 1, 201524

Acquisition Price

277.12 m2
668.09 m2
RC B2/2F

Completed

July 2002
Property Manager

Jones Lang LaSalle K.K.

Japan Prime Realty Investment Corporation

Central Tokyo
A-1

OfficeRetail/ Greater Tokyo Office Retail

JPR Shibuya Tower Records Bldg.

A-3

Shibuya Ward, TokyoJPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price¥4,275 million
Site Area

198.10 m2

Total Floor Space

1,066.81 m2

Structure/Floors

S/SRC B1/7F
CompletedFebruary 2006
Property Manager

Jones Lang LaSalle K.K.

A-4

Shinjuku Sanchome East Bldg.
Shinjuku Ward, Tokyo

Acquisition Price¥2,740 million
Site Area

2,578.69 m2

Total Floor Space
Acquisition Price

Structure/Floors¥12,000 million
Site Area

1,010.47 m

28,449.56 m

2

Total Floor Space

A-5

SRC/S B3/8F

S/SRC/RC B3/14F

Completed

CompletedFebruary 1992

January 2007

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

Tokyo Tatemono Co., Ltd.

B-1

Chiyoda Ward, Tokyo

Arca East
Sumida Ward, Tokyo

Acquisition Price

Acquisition Price¥3,400 million
Site Area

24,617.65 m2

Structure/Floors¥5,880 million
Site Area

23,755.01 m2

6,808.12 m
Total Floor Space

Total Floor Space

71,957.65 m2

Structure/Floors

34,281.86 m2

Structure/Floors

S/SRC B4/20F

S/SRC B3/19F

Completed

Completed

October 2007

March 1997

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

B-2

JPR Chiba Bldg.

Tokyo Tatemono Co., Ltd.

B-3

Chiba City, Chiba

Acquisition Price

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price¥2,350 million
Site Area

2¥2,927 million
Site Area

1,382.35 m
Total Floor Space

9,072.57 m2

Structure/Floors

Total Floor Space

1,100.59 m2
9,146.52 m2

Structure/Floors

S/SRC B1/13F
Completed

SRC B1/11F
Completed

January 1991
Property Manager

Tokyo Tatemono Co., Ltd.

October 1989
Property Manager

Tokyo Tatemono Co., Ltd.

25

II. Overview of JPR

Portfolio Properties
Greater Tokyo
B-5

OfficeRetail

Shinyokohama 2nd Center Bldg.

Kawaguchi Center Bldg.

B-6

Yokohama City, Kanagawa

Kawaguchi City, Saitama

Acquisition Price

Acquisition Price¥1,490 million
Site Area

841.71 m
Total Floor Space

¥8,100 million
Site Area

24,524.61 m2

Total Floor Space

7,781.93 m2

Structure/Floors

S/SRC B2/12F

S/SRC B2/15F

Completed

Completed

August 1991

B-7

February 1994

Property Manager

Property Manager

Nomura Real Estate Partners Co., Ltd.

Nomura Real Estate Partners Co., Ltd.

JPR Ueno East Bldg.

Tachikawa Business Center Bldg.

B-8

Taito Ward, Tokyo

Acquisition Price
Site Area

Tachikawa City, Tokyo

Acquisition Price¥3,250 million¥3,188 million
Site Area

1,242.97 m2

Total Floor Space
Structure/Floors
Completed

2,047.22 m2

2

8,490.44 m

Total Floor Space

S/SRC B1/8F

Structure/Floors

October 1992

Completed

December 1994

Jones Lang LaSalle K.K. (Note)

Property Manager

Tokyo Tatemono Co., Ltd.

(Note) C hanged from Yasuda Real Estate Co.,
Ltd. as of September 1, 2015

Rise Arena Bldg.

B-11

Toshima Ward, Tokyo
Acquisition Price
Site Area

14,706.36 m2
S/SRC B1/12F

Property Manager

B-928,420.85 m2

Structure/Floors

Olinas Tower
Sumida Ward, Tokyo¥5,831 million
29,377.28 m (entire redevelopment project)

Total Floor Space

91,280.94 m2 (including residential tower)

Structure/Floors

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

Completed

January 2007

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

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

B-10

Yume-ooka Office Tower
Yokohama City, Kanagawa

Acquisition Price¥6,510 million
Site Area
Total Floor Space

12,011.00 m2
185,974.87 m2

Structure/Floors

Structure/Floors

S/SRC/RC B3/27F

Completed

27,335.29 m2 (entire site area)

Total Floor SpaceMarch 1997
Property Manager

Tokyo Tatemono Co., Ltd.

SRC/RC/S B2/45F (Note)¥31,300 million
Site Area

Completed

26

Acquisition Price

2257,842.41 m(includes commercial tower and residential tower)

Property Manager

February 2006

Tokyo Tatemono Co., Ltd.

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

Japan Prime Realty Investment Corporation

Greater Tokyo
B-12

OfficeRetailTokyo Tatemono Yokohama Bldg.

B-13

Yokohama City, Kanagawa

Omiya Prime East
Saitama City, Saitama

Acquisition Price

Acquisition Price¥7,000 million
Site Area¥6,090 million
Site Area

22,268.09 m2

1,110.28 m
Total Floor Space

Total Floor Space

8,772.51 m2

Structure/Floors

SRC B1/9F

S 9F

Completed

CompletedMay 1981

February 2009

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

B-1

Tanashi ASTA

Tokyo Tatemono Co., Ltd.

B-3

Nishitokyo City, Tokyo

Cupo-la Main Bldg.
Kawaguchi City, Saitama

Acquisition Price

Acquisition Price¥10,200 million
Site Area¥2,100 million
Site Area

2

12,326.30 m
Total Floor Space2

15,008.28 m (entire redevelopment project)
Total Floor Space2

80,675.27 m
Structure/Floors

48,321.96 m2

Structure/Floors

SRC B2/17F

S/RC/SRC B2/10F

Completed

CompletedFebruary 1995

January 2006

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

B-4

9,203.98 m2

Structure/Floors

JPR Musashikosugi Bldg.

Tokyo Tatemono Co., Ltd.

B-6

Kawasaki City, Kanagawa

Kawasaki Dice Bldg.
Kawasaki City, Kanagawa

Acquisition Price¥7,260 million
Site Area

4,761.62 m2

Total Floor Space

18,394.32 m2

Structure/Floors

SRC/RC/S B1/6F
Completed

March 1983
Property Manager

Tokyo Tatemono Co., Ltd.

B-5

Musashiurawa Shopping Square
Saitama City, Saitama
Acquisition Price¥4,335 million
Site Area
Total Floor Space

8,317.99 m2
28,930.36 m2

Structure/Floors

S B1/4F
Completed

October 2005
Property Manager

Nippon Steel Kowa Real Estate Co., Ltd.
Tokyo Tatemono Co., Ltd.

Acquisition Price

Structure/Floors¥15,080 million
Site Area

4,475.45 m2

Total Floor Space

36,902.01 m

2

S/SRC/RC B2/11F
Completed

August 2003
Property Manager

Tokyo Tatemono Co., Ltd.

27

II. Overview of JPR

Portfolio Properties
Other Cities
C-1

OfficeRetailNiigata Ekinan Center Bldg.

C-4

Niigata City, Niigata

Tokyo Tatemono Honmachi Bldg.
Osaka City, Osaka

Acquisition Price

Acquisition Price¥2,140 million
Site Area¥4,150 million
Site Area

22,706.99 m
Total Floor Space

Total Floor Space

19,950.42 m2

Structure/Floors

14,619.52 m2

Structure/Floors

S/SRC B1/10F

SRC B3/9F

Completed

Completed

March 1996

February 1970

Property Manager

Property Manager

Jones Lang LaSalle K.K.

C-7

1,432.64 m2

JPR Hakata Bldg.

Tokyo Tatemono Co., Ltd.

C-9

Fukuoka City, Fukuoka

JPR Naha Bldg.
Naha City, Okinawa

Acquisition Price¥2,900 million
Site Area
Total Floor Space

Acquisition Price¥1,560 million

1,214.63 m2

Site Area

9,828.73 m2

Total Floor Space

S/SRC B1/12F

Structure/Floors

Structure/Floors

June 1985
expansion in November 2003

Completed

October 1991

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Sompo Japan Sendai Bldg.

Tokyo Tatemono Co., Ltd.

C-13

Sendai City, Miyagi

Sompo Japan Wakayama Bldg.
Wakayama City, Wakayama

Acquisition Price

Acquisition Price¥3,150 million
Site Area¥1,670 million
Site Area

2

1,895.67 m
Total Floor Space

Total Floor Space

10,783.52 m2

Structure/Floors

SRC B1/12F

S 9F

December 1997

July 1996
Property Manager

Tokyo Tatemono Co., Ltd.

Tenjin 121 Bldg.

Tokyo Tatemono Co., Ltd.

C-17

Fukuoka City, Fukuoka

Acquisition Price

JPR Dojima Bldg.
Osaka City, Osaka

Acquisition Price¥2,810 million
2¥2,140 million
Site Area

1,164.39 m
Total Floor Space

8,690.95 m2

Structure/Floors

Total Floor Space668.11 m2
5,696.01 m2

Structure/Floors

S/SRC 13F
Completed

SRC B2/9F
Completed

July 2000
Property Manager

Tokyo Tatemono Co., Ltd.

28

6,715.07 m2

Completed

Property Manager

Site Area

1,128.45 m2

Structure/Floors

Completed

C-14

5,780.71 m2
SRC/S 12F

Completed

C-12

959.87 m2

October 1993
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities
C-18

OfficeRetailJPR Hakata-Chuo Bldg.

C-19

Fukuoka City, Fukuoka

JPR Nagoya Fushimi Bldg.
Nagoya City, Aichi

Acquisition Price

Acquisition Price¥1,920 million
Site Area¥4,137 million
Site Area2

680.63 m
Total Floor Space

Total Floor Space

3,874.81 m2

Structure/Floors

10,201.44 m2

Structure/Floors

SRC 8FSRC B1/9F

Completed

CompletedFebruary 1993

March 1991

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

C-1

1,610.38 m2

JPR Umeda Loft Bldg.

Tokyo Tatemono Co., Ltd.

C-20

Osaka City, Osaka

Yakuin Business Garden
Fukuoka City, Fukuoka

Acquisition Price¥10,996 million
Site Area
Total Floor Space

4,348.43 m2
22,286.35 m2

Structure/Floors

SRC 14F
Completed

January 2009
Property Manager

Tokyo Tatemono Co., Ltd.

C-3

Benetton Shinsaibashi Bldg.
Osaka City, Osaka
Acquisition Price¥5,430 million
Site Area
Total Floor Space609.31 m2
5,303.98 m2

Structure/Floors
Acquisition Price
Site Area

3,518.68 m2

Total Floor SpaceC-4

S B2/10F

Structure/Floors¥13,000 million

17,897.56 m2

SRC B1/8F

CompletedFebruary 2003
expansion in January 2005

Completed

April 1990
Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe

Tokyo Tatemono Co., Ltd.

C-5

Kobe City, Hyogo

Acquisition Price

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price¥7,220 million
Site Area2¥6,000 million
Site Area

3,994.47 m
Total Floor Space

33,877.71 m2

Structure/Floors

Total Floor Space592.45 m2
3,219.36 m2

Structure/Floors

SRC/S B2/11F
Completed

S/SRC 9F
Completed

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

29

II. Overview of JPR

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

Corporate History
Date

Description

September 6, 2001

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the investment corporation under Article69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)

September 14, 2001

Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act

November 16, 2001

Started asset management (acquisition of real estate beneficiary interests in trust for 13 underlying trust assets comprising 11
office properties and 2 retail properties) (¥40,730 million in total)

January 22, 2002

Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act

June 14, 2002

Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange and started trading

Structure of JPR

Administrative Agent forEnvironment-Related Laws andRegulations

40%

20%

20%

10%

10%

Tokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents

Tokyo Tatemono Co., Ltd.

Japan Prime Realty
Investment Corporation

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

Loans / Issue
of Investment
Corporation
Bonds

Asset
Management
Property

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

Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager

Cash
Distribution

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Entrustment of Entrustment ofgeneralasset custodyadministration

30

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Japan Prime Realty Investment Corporation

9. Overview of Asset Manager
Overview
Name
Business Description
Capitalization

Shareholder
Composition (Note 1)

Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporations¥350 million
Tokyo Tatemono Co., Ltd. (40%)
Taisei Corporation (20%)
Yasuda Real Estate Co., Ltd. (20%)
Sompo Japan Nipponkoa Insurance Inc. (10%)
Meiji Yasuda Life Insurance Company (10%)

Corporate History

April 28, 2000

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

October 13, 2000
March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

Applied for registration and submitted application form for financial instruments exchange business(Note 1) The percentage represents the ratio of the number of respective shares with voting rights to the total number of shares with voting rights.
(Note 2) 	Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006).

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Compliance Committee(Compliance Subcommittee)
Compliance Office

Investment Management
Division

Financial DivisionCorporate Planning /Administration Division

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

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

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

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

Unit

Operating Revenue㻌 Rent revenue – real estate
Operating Expenses
㻌 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
㻌 Dividend payout ratio
Number of Units Outstanding
Total Unitholders' Equity per unit
Cash Distribution per Unit㻌 Distribution amount㻌 Exceeding profit distribution amount
Ordinary Income on Total Assets (Note 1)
㻌 Annualized (Note 10)
Net Income on Total Unitholders'Equity (Note 2)
㻌 Annualized (Note 10)
Total unitholders' equity at㻌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 and㻌amortization (Note 6)
㻌 Interest expenses
NOI from Leasing (Note 7)
Annualized NOI yield (Notes 9 and㻌
10)
NCF from Leasing (Note 8)
Annualized NCF yield (Notes 9 and㻌
10)Investment Properties Owned (Note 11)
Number of Tenants
Total Leasable Floor Space
Occupancy Rate

Million yen

24th Fiscal
Period(Jul. 1, 2013 Dec. 31, 2013)
13,591Million yen

7,223

㻌

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance㻌(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Million yen
Million yen
Million yen
Million yen
Million yen

13,591

6,534
6,368
4,899
4,954

25th Fiscal
Period(Jan. 1, 2014 Jun. 30, 2014)
13,73426th Fiscal
Period(Jul. 1, 2014 Dec. 31, 2014)
13,90227th Fiscal
Period(Jan. 1, 2015 Jun. 30, 2015)
14,25128th Fiscal
Period(Jul. 1, 2015 Dec. 31, 2015)
14,105

7,308

7,425

7,554

7,273

13,734

6,599
6,425
5,073
5,072

13,902

6,733
6,477
5,239
5,238

14,251

6,845
6,697
5,566
5,603

14,105

6,553
6,831
5,746
5,749

Million yen

413,974

414,104

414,091

418,778

418,739

Million yen

191,759

191,190

191,024

176,458

176,292(-0.0)(+0.1)(+0.1)(+9.5)%

Million yen%(+1.0)

197,095(+0.0)

197,213(-0.0)

197,378(+1.1)

216,092

Million yen

192,044

192,044

192,044

210,395

%

100.0

100.0

100.0

100.0

Million yen

4,954

5,073

5,239

5,603

(-0.0)

216,238(+0.1)

210,395

5,751

100.0

Units

825,000

825,000

825,000

873,000

873,000

Yen

6,006

6,150

6,351

6,419

6,588

Yen
Yen
Yen

238,903

6,006

239,046

6,150

239,246

6,351

247,5296,419

247,696

6,588

%

－
1.2

－
1.2

－
1.3

－
1.3

－
1.4

%

2.5

2.6

2.7

2.7

2.7

%

5.0

5.2

5.3

5.5

5.3

197,116

197,095

197,213

197,378

216,092

47.6

47.6

47.7

51.6

51.6

(-0.5)(+0.0)(+0.0)(+3.9)(+0.0)

%

46.3

46.2

46.1

42.1

42.1

Times

6.1

6.5

7.2

7.9

8.7

Million yen

8,149

8,167

8,223

8,531

8,619

Million yen

1,325

1,259

1,142

1,073
9,260

9,427

%

4.4

4.5

4.4

4.6

4.6

Million yen

8,080

8,287

8,303

8,599

8,581

%

4.0

4.1

4.1

4.2

4.1

%

Million yen%

Million yen

2.4

8,925

62

m2
%

610

467,207.05

96.5

2.5

8,968

62

628

467,175.54

97.8

2.5

9,010

62

632

468,232.24

97.0

2.7

62

647

475,007.79

96.7

2.7

994

62

650

476,352.67

97.4

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 / total assets at end of period x 100
Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)
Net income - gain on sale of real estate + loss on sale of real estate + loss on sale of investment securities + extraordinary loss + interest expenses (includinginterest expenses on investment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing / property acquisition price (24th fiscal period: ¥404.72 billion, 25th fiscal period: ¥404.72 billion, 26th fiscal period: ¥405.52
billion, 27th fiscal period: ¥409.52 billion and 28th fiscal period: ¥410.30 billion)

3232

Japan Prime Realty Investment Corporation

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: 24th fiscal period: 184 days, 25th fiscal period: 181 days,
26th fiscal period: 184 days, 27th fiscal period: 181 days and 28th fiscal period: 184 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shibadaimon Center Bldg., Shinjuku Sanchome East Bldg.,
Shinyokohama 2nd Center Bldg., Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but are calculated as one
property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded off to the first decimal place).

(2) 28th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts
and Investment 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. Subsequently, JPR
conducted public offerings and other equity financing measures, with the number of investment units issued and outstanding
totaling 873,000 units at present. 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
Despite having temporarily appeared to level off due to such effects as the slowdown in the Chinese economy, the Japanese
economy showed a modest recovery trend during the 28th fiscal period, with corporate earnings remaining strong and theemployment environment continuing to improve as well as consumer spending generally staying solidly on course.
The Office Property Leasing Market
The supply and demand balance in the office property leasing market of the 23 wards of Tokyo further improved due to thecontinued demand for such positive developments as setting up new offices, expanding office spaces and moving to better
locations. Given this situation, the upward swing of the rent levels for new contracts is increasingly spreading through the entire
market.
The Retail Property Leasing Market
Tenant’s needs to open stores remained strong for urban retail properties in which JPR targets to invest. Rents continued toincrease for urban retail properties in good locations, such as Ginza, Omotesando and Shinsaibashi, where consumption by
inbound foreign tourists is anticipated.
The For-Sale Real Estate Market
Competition over transactions in the market has become more intensified as the market participants become increasingly
diversified, including foreign investors, causing property transaction prices to be formed at an even higher level. There has also
been an expansion of investments in properties located in regional cities as well as in projects related to inbound demand, such as
hotels and urban retail properties. With low-yield transactions continuing to prevail, the acquisition environment remains harshfor players focusing on yields. Accordingly, REITs have somewhat decelerated the pace at which they conduct new listings andexpand their asset size by obtaining funds through public offerings.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality and stabilizing earnings of the portfolio while paying attention tobalancing diversification of the portfolio, both in terms of location and asset type.
During the 28th fiscal period, JPR acquired Shinjuku Square Tower (additional acquisition) at the acquisition price of 786 million
yen. As a result, the balance of assets under management totaled 62 properties, or 410.3 billion yen on an acquisition price basis,
as of the end of December 2015, with the total leasable floor space standing at 476,352m2 and the number of tenants reaching
650.
Operational Management of Portfolio
In the office property leasing market in the 28th fiscal period, the vacancy rate stayed at a low level, given further improvementin the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract new tenants
through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation with property
management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving occupancy rates.
As a result, the occupancy rate increased 0.7 points period-on-period to 97.4% at the end of the 28th fiscal period.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR
continued to proactively implement value enhancement works based on tenant needs with the aim to create spaces where the3333

III. Asset Management Report

workers feel comfortable. As an endeavor to implement energy-saving measures, JPR conducted renovations of air-conditioning
systems and replaced lighting equipment in common areas with LED lamps, which are expected to be effective for achieving thisobjective, at its multiple properties.
Meanwhile, JPR is continuously working to obtain environmental certificates (the DBJ Green Building Certification*1 and therecognition by GRESB*2). In the 28th fiscal period, JPR newly obtained the DBJ Green Building Certification for its JPR Naha
Building. In the GRESB survey conducted in 2015, JPR was designated as “Green Star,” marking the second consecutive year ofrecognition with the highest ranking in the survey. GRESB also selected JPR as Sector Leader (the first rank) in the Diversified(Retail/Office) sector in Asia.
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet thevarious social requirements surrounding real estate from stakeholders (“Green Buildings”).

*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estatecompanies, REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a groupof the same name composed of more than 50 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on the diversification of repayment dates through lengthening thematurities of interest-bearing debts, in an effort to further reinforce its strong and solid financial base against the backdrop of thefavorable fund procurement environment and low interest rates. In the 28th fiscal period, JPR borrowed 10.0 billion yen to fundthe repayment of 10.1 billion yen in loans that matured during the fiscal period. The average maturity and average debt cost of
the refinanced loans stood at 7.8 years and 0.79%, respectively, in contrast to 3.7 years and 0.98%, respectively, for the relevantloans before refinancing, achieving longer maturities and lower debt costs.
As of the end of the 28th fiscal period, the balance of interest-bearing debts totaled 176.2 billion yen, with total outstanding
borrowings of 134.7 billion yen and investment corporation bonds of 41.5 billion yen. The ratio of interest-bearing debts to total
assets (Note 1) was 42.1%, long-term and fixed interest-bearing debt ratio (Note 2) was 99.4%, average debt cost (Note 3) was
1.19% and average maturity (Note 4) was 4.0 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 28 billion yen with seven financial institutions.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of December 31, 2015
Credit Rating Agency
Rating and Investment Information, Inc.
Standard & Poor's Ratings Japan K.K.

Corporate Credit Rating
AA- (Stable)
Long-term: A (Stable)
Short-term: A-1(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporationbond management 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 28th fiscal period to the repayment deadlines for all
interest-bearing debts based on the balance of each interest-bearing debt.

3434

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 28th fiscal period.
Date

Event

September 14, 2001

Established by private placement

January 22, 2002

Split of investment units

November 16, 2001
June 14, 2002
July 15, 2003

August 9, 2003

February 1, 2005
March 1, 2005

February 6, 2007
March 7, 2007

February 8, 2010
March 12, 2010
July 30, 2012

August 29, 2012
June 16, 2015
June 24, 2015
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Additional private placement

Number of Units
Outstanding

Variation
240

Balance240

Variation
120

Balance120

93,360155,600

31,120134,400

289,600
424,000－
25,862430,000

1,373

89,11362,000Initial public offering

134,000

Third-party allotment

6,000

Additional public offering
Additional public offering

95,000Additional public offering

90,000Additional public offering

82,000Additional public offering

101,420

Additional public offering

45,700Third-party allotment
Third-party allotment
Third-party allotment
Third-party allotment
Third-party allotment

Unitholders' Capital(millions of yen)

5,000
5,000
8,000
8,580
2,300

62,24031,00030,75831,12056,98287,740525,000

25,001620,000

39,120154,552

707,000

13,315170,040

816,420

19,089870,700

17,472530,000
625,000
715,000
825,000
873,000

1,315
2,173
1,299
1,614
879

114,115

115,431

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)156,725(Note 10)

171,339(Note 12)

192,044(Note 14)

190,429
209,516
210,395(Note 11)

(Note 13)
(Note 15)
(Note 16)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment

Management, Inc. (40 units) at 500,000 yen per unit.

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

A single investment unit was split into 2.5 units.

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

finance the acquisition of new specific assets, etc.

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

acquire new specific assets, etc.

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

(Note 7)

New investment units were issued through a public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to repay short-term debts,(Note 8)New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debts, acquire new specific assets, etc.

(Note 9)(Note 10)(Note 11)

(Note 12)(Note 13)
(Note 14)

(Note 15)

(Note 16)

acquire new specific assets, etc.

New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to repay debts, acquire new

specific assets, etc.

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

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

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

acquire new specific assets, etc.

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

New investment units were issued through a third-party allotment at 188,222 yen per unit to partly fund acquisition of new specific assets and repay debts.
New investment units were issued through a public offering at 394,875 yen per unit (underwriting price of 382,320 yen per unit) to repay debts, etc.

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

3535

III. Asset Management Report(4) Cash Distributions
With regard to the cash distributions, JPR decided to distribute part of the retained earnings brought forward that had been internallyreserved through the 27th 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) andin order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result, the cash distribution perunit came to 6,588 yen for the 28th fiscal period.

Fiscal Period
Unappropriated Retained Earnings at End of Period(Thousands of yen unless otherwise indicated)

24th Fiscal
Period25th Fiscal
Period26th Fiscal
Period27h Fiscal
Period28th Fiscal
Period(Jul. 1, 2013 Dec. 31, 2013)(Jan. 1, 2014 Jun. 30, 2014)(Jul. 1, 2014 Dec. 31, 2014)(Jan. 1, 2015 Jun. 30, 2015)(Jul. 1, 2015 Dec. 31, 2015)

4,976,931

5,094,946

5,259,866

5,623,366

5,769,258

Internal Reserves

21,981

21,196

20,291

19,57917,934

Total Cash Distributions

4,954,950

5,073,750

5,239,575

5,603,787

5,751,324(Cash Distribution per Unit)(6,006 yen)

(6,150 yen)

(6,351 yen)

(6,419 yen)

(6,588 yen)

Total Cash Distributions from Net Income

4,954,950

5,073,750

5,239,575

5,603,787

5,751,324(Cash distribution from net income per unit)(6,006 yen)

(6,150 yen)

(6,351 yen)

(6,419 yen)

(6,588 yen)

－

－

－

－

－

(- yen)(- yen)(- yen)(- yen)(- yen)㻌㻌㻌Breakdown㻌

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy is expected to remain on the track of a modest recovery, given strong corporate performanceand the continued improvement trends in the employment and income environments. Caution should be taken, however, with regard
to the risks that may push the Japanese economy downward, such as downside swings of overseas economies.
In the office property leasing market, new supply in the 23 wards of Tokyo will temporarily increase in the first half of 2016. If,
however, the economy remains strong, the market situation in general is likely to show a further recovery amid continued
improvement in the supply and demand balance, while polarization by property will keep progressing. In this regard, JPR believes itwill be able to fully enjoy the positive impact of the market recovery as it has focused on improving tenant satisfaction throughproactive implementation of value enhancement works and provision of elaborate management services. Going forward, when
conducting real estate transactions in the market where polarization of earnings by property is anticipated to further advance, it will
become even more important to discern the growth potential in earnings of respective properties. Considering the situation in which
cap rates are decreasing in a low interest rate environment, it is required to firmly keep the attitude of vigorously selective investment
for implementing real estate investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
Going forward, JPR will continue to make investments focused on the Tokyo office properties, with an aim to improve the qualityof its portfolio and enhance its growth potential over the long term. Real estate transactions remain brisk, as a decrease inpurchase cap rate and expected cap rate levels has been observed in the transaction market along with the recovery in the officeproperty leasing market conditions. For office properties in Tokyo in particular, there are deals closed at prices that have factored
in rent increases in accordance with the economic recovery. Accordingly, JPR will fully investigate the growth potential of suchproperties when acquiring them. As for retail properties as well as office properties in regional cities, JPR will work to invest in
strictly selective blue-chip properties that can keep stable revenues at a certain level in order to complement the stability ofearnings from the entire portfolio. JPR will strive to acquire new properties under reasonable terms by negotiating prices based on
detailed market studies and property due diligence in considering properties.
Furthermore, JPR will also investigate asset replacement with an aim to improve the quality of its portfolio and enhance thegrowth potential over the long term, while taking into account the timing of such arrangement.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants,
encourage them to expand office spaces in the same buildings and renew contracts with upward revision of rents throughendeavors to enhance tenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically,
JPR will conduct management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate
decision making

3636

Japan Prime Realty Investment Corporation- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify therepayment dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arisein accordance with future changes in the financial environment. Moreover, JPR intends to work on fund procurement throughissuance of investment corporation bonds as it aims to diversify fund procurement means and sources.

(6) Information Disclosure
Positioning the proactive voluntary disclosure of information as one of its key management policies, JPR voluntarily discloses
information believed to be essential to make investment decisions concerning JPR, along with the timely disclosure of items to theTokyo Stock Exchange. As a vital means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide expanded information including monthly occupancy rates of all properties in the portfolio
and historical data as well as information for retail investors, among other services. Going forward, we are committed to further
enriching the disclosure contents and providing information in a timely manner.

(7) Significant Subsequent Events
No relevant items.

3737

III. Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital

Total number of authorized units
Total number of units issued andoutstanding

24th Fiscal
Period as ofDecember 31, 2013
5,000,000

25th Fiscal
Period as of June30, 2014
5,000,000

26th Fiscal
Period as ofDecember 31, 2014
5,000,000

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

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

825,000

825,000

825,000

873,000

873,000

192,044

192,044

192,044

210,395

210,395

12,877

12,425

11,836

15,68913,264

Unitholders' capital (millions ofyen)
Total number of unitholders(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 28th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units
190,655

Units Outstanding (%)
21.83

60,501

6.93

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

32,812

3.75

Tokyo Tatemono Co., Ltd.

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

29,3003.35

Meiji Yasuda Life Insurance Company

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

24,0002.74

Japan Trustee Services Bank, Ltd. (Trust Account)

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

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

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

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

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

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

577 Matsushima, Kurashiki-shi, Okayama

State Street Bank West Client Treaty (Standing Proxy:
Settlement & Clearing Services Division, Mizuho Bank, Ltd.)State Street Bank and Trust Company 505223 (Standing
Proxy: Settlement & Clearing Services Division, Mizuho
Bank, Ltd.)State Street Bank West Pension Fund Clients Exempt 505233(Standing Proxy: Settlement & Clearing Services Division,
Mizuho Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)
P.O. Box 351 Boston, Massachusetts 02101,
U.S.A(4-16-13 Tsukishima, Chuo-ku, Tokyo)

1776 Heritage Drive, North Quincy, MA 02171
U. S. A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)

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

68,416

7.83

25,0002.86

18,731

2.14

15,1741.73

14,141

1.61

478,730

54.83(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 28th fiscal period are as follows.
Position
Executive Officer
Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

Name

Other Current Assignments

Total Directors' Fee
during the 28th Fiscal
Period (thousands of yen)
2,400

Numberof Owned
Units－

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law OfficeNobuhisa Kusanagi

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

4,200

－

－

13,000－

Masato Denawa

Ernst & Young
ShinNihon LLC

Partner Attorney, Spring Partners－(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.

(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements.

3838

Japan Prime Realty Investment Corporation

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.
C. Business Suspension Order to Which the Independent Auditor is Currently Subject(a) Subject of the order
Ernst & Young ShinNihon LLC(b) Content of the order
A three month (January 1, 2016 to March 31, 2016) business suspension order that prevents Ernst & Young ShinNihon fromtaking on any new business contracts(c) Reason for the order● Seven public certified accountants of Ernst & Young ShinNihon LLC (the “Independent Auditor”) had, in negligence ofdue care, attested the financial statements of Toshiba Corporation for the fiscal years ended March 31, 2010, 2012 and 2013containing material misstatements as if the statements contained no material misstatements● The Independent Auditor’s operations were deemed to be significantly inappropriate.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 28th fiscal period are as follows.
Outsourcing Category
Asset management company

Name
Tokyo Realty Investment Management, Inc.

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

Mizuho Trust & Banking Co., Ltd.

Asset custodian

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Trust & Banking Co., Ltd.
Mizuho Bank, Ltd.

3939

III. Asset Management Report

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

Real estate

Greater Tokyo

27th Fiscal Period(as of June 30, 2015)

Assets owned by JPR(thousands of yen)
79,182,734

Percentage of total
assets (%)
18.9

Assets owned by JPR(thousands of yen)
79,046,265

21,367,962

5.1

21,222,722

58,479,210

Other Cities

Real estate in trust
Deposits and otherassets28th Fiscal Period(as of December 31, 2015)

14.0

58,113,588

Percentage of total
assets (%)
18.9
13.9

5.1

Central Tokyo

137,634,395

32.9

138,627,125

33.1

Other Cities

43,733,460

10.4

43,495,908

10.4

Greater Tokyo

Total assets

52,214,251

㻌 26,166,855(－)㻌 㻌
418,778,869(392,612,013)

－
－

12.5

51,840,430

6.2
(－)
100.0
㻌 㻌 㻌 （93.8）

12.4

㻌 26,393,499(－)㻌 㻌
418,739,540(392,346,040)

6.3
(－)
100.0
㻌 㻌 㻌 （93.7）(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheet as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).

(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the endof the 28th fiscal period.

Property Name
Otemachi Tower (Land with
Leasehold Interest)
Olinas Tower

Shinjuku Center Bldg.
BYGS Shinjuku Bldg.
JPR Sendagaya Bldg.
Kanematsu Bldg.

Kawasaki Dice Bldg.

Shinjuku Square Tower
JPR Umeda Loft Bldg.

JPR Shibuya Tower Records
Bldg.
Total

Book Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Asset Class38,388,259

11,034.78

11,034.78

100.0

12.1

Office28,348,287
22,226,712
15,523,678
15,028,061
14,724,003
13,867,897
13,624,345
12,554,811

23,987.40
8,863.98
15,216.93
6,177.74
8,011.75
12,116.35
19,284.71
18,586.97

23,987.40
8,057.00
15,134.94
5,360.16
5,583.89
12,116.35
19,266.82
18,586.97

100.0
90.9
99.5
86.8
69.7
100.0
99.9
100.0

7.2
3.3
3.8
1.6
1.9
3.0
2.7
2.8

Office11,546,618

8,076.85

8,076.85

100.0

2.5

Retail185,832,675

131,357.46

127,205.16

96.8

40.8

OfficeOfficeOfficeOfficeRetailOfficeRetail(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.

(Note 2) The tenants of Shinjuku Center Bldg., Kawasaki Dice Bldg. and Shinjuku Square Tower have sublet space to a sub-lessee and a lease agreement has been
executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor

space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

4040

Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 28th fiscal period (December 31, 2015).

Area Type

Property Name
Kanematsu Bldg.

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

Kanematsu Bldg. Annex

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

JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
OfficeShinjuku Square Tower

Central Tokyo

Location

BYGS Shinjuku Bldg.

Across Shinkawa Bldg. Annex

17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo

3-3 Kojimachi 4-chome, Chiyoda-ku, Tokyo
21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo

13-23 Shibaura 4-chome, Minato-ku, Tokyo
8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo

8-7 Yaesu 2-chome, Chuo-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

Shinagawa Canal Bldg.

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, TokyoJPR Harajuku Bldg.

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

Tokyo Tatemono Kyobashi Bldg.

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

Shinjuku Center Bldg.
Minami Azabu Bldg.
Rokubancho Bldg.

JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

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

Ginza Sanwa Bldg.
6-1 Ginza 4-chome, Chuo-ku, Tokyo
Otemachi Tower (Land with Leasehold 6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Interest)
Tokyo

Retail

12,600,000

2,408,640

2,430,000

2,004,259

2,510,000

2,492,110

3,060,000

3,316,075

3,040,000

11,032,498

11,400,000

3,034,294

2,470,000

3,001,131

2,950,000

5,250,779

4,890,000

2,935,913

4,600,000

13,624,345

13,300,000

15,523,678

15,100,000

Real estate

22,226,712

13,800,000

Real estate

3,882,759

2,560,000

Real estate

1,763,412

1,820,000

8,726,599

7,830,000

5,344,726

5,900,000

Real estate

Real estate
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate20-5 Daikanyamacho, Shibuya-ku, TokyoJPR Jingumae 432

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

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

1-26, Shinjuku 3-chome, Shinjuku-ku, Tokyo
7-1 Yurakucho 2-chome, Chiyoda-ku, Tokyo

Real estate

Arca East

2-1 Kinshi 3-chome, Sumida-ku, TokyoJPR Chiba Bldg.

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

JPR Shibuya Tower Records Bldg.

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

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

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

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

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

1-8 Honcho 4-chome, Kawaguchi, Saitama

JPR Ueno East Bldg.

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

Tachikawa Business Center Bldg.

38-5 Akebonocho 2-chome, Tachikawa, Tokyo

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower

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

Appraisal ValueBook Valueas of December
as of December
31, 2015
31, 2015(thousands of yen)(thousands of yen)
(Note)
14,724,003

JPR Daikanyama

Shibadaimon Center Bldg.

OfficeBeneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

Science Plaza-Yonbancho PlazaGreater Tokyo

Form ofOwnership

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

604,9292,856,069

841,000

3,250,000

4,891,331

6,260,000

15,028,061

11,000,000

38,388,259

43,700,000

2,698,417

3,040,000

4,238,951

5,280,000

11,546,618

13,900,000

3,629,789

3,550,000

2,183,734

1,600,000

4,312,895

3,720,000

2,662,182

2,760,000

3,340,208

2,990,000

4,393,492

6,320,000

2,304,644

1,750,000

2,545,544

2,430,000

1,448,260

1,710,000

7,004,447

7,680,000

3,003,786

4,510,000

2,916,096

3,190,000

5,394,803

7,490,000

Real estate

5,578,391

5,830,000

Real estate

28,348,287

34,900,000

4141

III. Asset Management Report

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

RetailGreater Tokyo

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

OfficeJPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.

Other Cities

Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden

RetailJPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

Form ofOwnership

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

Real estate

Beneficiaryinterest
Beneficiaryinterest
Real estate

1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi, Saitama
420-1, etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa

Real estate

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

3-1 Bessho 7-come, Saitama, Saitama

8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka

1-19 Matsuyama 1-chome, Naha, Okinawa

7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
6-12 Hakataeki-mae 2-chome, Hakata-ku,
Fukuoka, Fukuoka
24-15 Sakae 1-chome, Naka-ku, Nagoya, Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka

Real estate

Beneficiaryinterest
Beneficiaryinterest

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

2-11 Minami-Senba 4-chome, Chuo-ku, Osaka,Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo

Real estate

Beneficiaryinterest

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

Appraisal ValueBook Valueas of December
as of December
31, 2015
31, 2015(thousands of yen)(thousands of yen)
(Note)
6,894,340

7,820,000

6,036,219

7,130,000

7,479,176

13,100,000

1,784,062

2,680,000

7,109,915

5,440,000

3,844,651

4,170,000

13,867,897

15,100,000

1,692,868

2,360,000

4,107,408

3,280,000

3,031,431

2,870,000

1,355,162

1,420,000

2,201,067

3,600,000

1,387,891

1,680,000

2,144,768

2,450,000

2,147,285

2,370,000

1,823,203

1,730,000

3,987,879

2,630,000

10,859,446

13,200,000

12,554,811

14,000,000

5,091,986

3,960,000

6,375,396

6,780,000

5,958,024

5,750,000

392,346,040

411,481,000(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.”

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

Area Type

Property Name

Kanematsu Bldg.

Kanematsu Bldg. Annex

JPR Ichigaya Bldg.

Shinjuku Square Tower
Shinjuku Square Tower(additional acquisition in 28th period)
BYGS Shinjuku Bldg.

(Note 2)0100.0

97,432

0.7

16

2.1

10

6

100.0

9

Fukuoka Bldg.

(Note 2)100.0

MS Shibaura Bldg.

Gotanda First Bldg.

0.0

4

16

Oval Court Ohsaki Mark West

4242

0

Shin-Kojimachi Bldg.

JPR Crest Takebashi Bldg.
OfficeCentral Tokyo

JPR Ningyo-cho Bldg.

27th Fiscal Period
28 Fiscal Period(from Jan. 1, 2015 to Jun. 30, 2015)(from Jul. 1, 2015 to Dec. 31, 2015)
RentalRentalNumberRatio to Number
Ratio toOccupancy Revenues
Occupancy Revenues
of
Total
of
Total
Rate atthroughout
Rate atthroughout
Tenants
RentalTenants
RentalPeriod End
PeriodPeriod End
Periodat Period
Revenues at Period
Revenues(%)(thousands(%)(thousands
End
(%)
End
(%)
of yen)of yen)8
79.8
365,3892.6
7
69.7
295,5172.1
88,69392,679

0.6
0.7

86.4

304,9291

100.0(Note 2)

(Note 2)

3

100.0

96.5

180,114

237,400

1.3

-

-

-

-

25

97.8

543,873

3.8

1
9
24

0.2

88.2

290,738
154,584

2.0
1.1
1.7

0.0

2,786

0.0

100.0

104,800

0.7

100.0

379,3951100.0(Note 2)

(Note 2)

2

100.0

172,974

1.2

26

99.9

327,437

2.3

26

99.5

550,377

3.9

4

100.0

6

100.0

3

10

70.7

100.0

89,142
92,715
16,807

135,411

0.6
0.7
2.7
0.1
1.0

Japan Prime Realty Investment Corporation

Area Type

Property Name

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

Shinagawa Canal Bldg.

OfficeCentral Tokyo

Rokubancho Bldg.

JPR Harajuku Bldg.

Tokyo Tatemono Kyobashi Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

RetailOffice(Note 2)89.0

167,791

1.2

9
8

100.0

6

100.0

8

100.0

7

100.0

63,734229,489
191,355
239,651

1

100.0
86.6

9

100.0

4

100.0

6

118,784

1.6
1.3
1.7

(Note 2)78,0950.5

89.8

82,25535,098

0.2

13

100.0

123,483

0.9

42

98.5

141,552
100,501
394,814
176,988

2.8
1.2

35

Tokyo Tatemono Yokohama Bldg.

13
14

100.0

993,747

7.0

4

100.0

Musashiurawa Shopping Square

3

Kawasaki Dice Bldg.

29

Tokyo Tatemono Honmachi Bldg.

10

JPR Naha Bldg.

20

Niigata Ekinan Center Bldg.
JPR Hakata Bldg.

Sompo Japan Sendai Bldg.

Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

JPR Dojima Bldg.

JPR Hakata-chuo Bldg.

JPR Nagoya Fushimi Bldg.

8

42

93.3
99.8
97.9

129,180
153,636
141,453

88,34716

100.0

98,481

6

100.0

12
8

98.3

111,385(Note 2)
0.9

0.7

100.0

(Note 2)

(Note 2)

647

96.7

144,181

14,251,821

0.9

43
8

91.0

0.8
0.6
0.9

404,224

92.9

144,293

94.0

171,418

0.7
2.9
1.2
1.0

100.0

(Note 2)

(Note 2)

12

100.0

1,050,755

7.4

4

100.0

264,889

1
1
1
3

8

42

15

95.4

100.0

317,395
298,383

2.1
1.9(Note 2)

(Note 2)100.0

(Note 2)

(Note 2)

100.0
100.0
100.0
100.0

93.3
99.8

(Note 2)
126,996516,697
127,414
154,014
147,669

90,823

185,856

16

100.0

98,590

6

100.0

8

2.3

100.0

100.0

111,475(Note 2)
0.9
3.7
0.9
1.1
1.0
0.6
1.3
0.8
0.7

100.0

113,961

94.5

134,4321

100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)3

17

(Note 2)

1

100.0

98,700

0.9

1

3.1

1.0

127,352

99.3

98.3

0.8

1

100.0

127,54513

1.3(Note 2)

6

94.8

100.0

(Note 2)
(Note 2)

12

21

100.0
100.0

1.9

0.6

1.0

1

441,269

266,54294.2

10

131,798

99.9

100.0

1.1

0.9

94.5

3

6

29

114,61480,704(Note 2)

3.4

100.0

1

Total

100.0

481,507

180,726

Benetton Shinsaibashi Bldg.
JPR Chayamachi Bldg.

100.0

126,996

100.0

17

Housing Design Center Kobe

(Note 2)100.0

(Note 2)14

(Note 2)

(Note 2)

100.0

2.1

100.0

100.0

1

35

(Note 2)0.6

(Note 2)

2.3

(Note 2)0.2

(Note 2)19

1.9

35,123

1.3

100.0

1.0

100.0

15

Yakuin Business Garden
JPR Umeda Loft Bldg.

264,101

177,601

0.9

1

18

Yume-ooka Office Tower

297,195

100.0

6

0.7

(Note 2)

322,5394

37(Note 2)

145,838

100.0

1.0

100.0

1

1.6

(Note 2)

9

121,015

1.4

100.0

1.9

1

226,685

1

1

JPR Musashikosugi Bldg.

86.8

194,169(Note 2)100.0

Cupo-la Main Bldg.

6

100.0

(Note 2)

267,826

1

1.4

6

1.7

0.8

1.2

20

Tanashi ASTA

193,404

233,032

11.2

100.0

100.0

100.0

100.0

113,966

Tachikawa Business Center Bldg.

Omiya Prime East

9

9

0.4

1,581,000

692.8(Note 2)

49,57696.6(Note 2)93.8

(Note 2)

66.7

100.0

(Note 2)

8

100.0

2

100.0

96.9

1

24

1

19

(Note 2)0.8

(Note 2)

Shinyokohama 2nd Center Bldg.

3.4(Note 2)

10.9

(Note 2)

93.0

474,469

100.0

100.0

100.0

36

90.9

1

8

170,762

0.8

1

JPR Chiba Bldg.

Olinas Tower

Retail(Note 2)

JPR Shibuya Tower Records Bldg.

JPR Ueno East Bldg.

4

100.0

100.0

112,258

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
Arca East

0.4

1

5

1,555,500

JPR Jingumae 432

31(Note 2)95.8

JPR Daikanyama

3.2(Note 2)100.0

Rise Arena Bldg.

Office462,978

100.0

2

Kawaguchi Center Bldg.

Retail

96.3

1

24

JPR Yokohama Nihon Odori Bldg.

Greater Tokyo

32

Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.

Other Cities

27th Fiscal Period
28 Fiscal Period(from Jan. 1, 2015 to Jun. 30, 2015)(from Jul. 1, 2015 to Dec. 31, 2015)
RentalRentalNumberRatio to Number
Ratio toOccupancy Revenues
Occupancy Revenues
of
Total
of
Total
Rate atthroughout
Rate atthroughout
Tenants
RentalTenants
RentalPeriod End
PeriodPeriod End
Periodat Period
Revenues at Period
Revenues(%)(thousands(%)(thousands
End
(%)
End
(%)
of yen)of yen)4
100.0
36,9560.3
4100.0
36,892
0.3

6

650

96.8

100.0
100.0

97.4

80,735446,004(Note 2)
159,430

14,105,386

0.8
0.6
1.0
3.2

(Note 2)
1.1

100.0

(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
Plaza-Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same
property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice
Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance with the leaseconditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons.

4343

III. Asset Management Report(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above.
There were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of
the 28th fiscal period.

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

Sompo Japan
Sendai Bldg.
MS Shibaura Bldg.
Kanematsu Bldg.
Annex

Location

Sendai City,
Miyagi

Minato Ward,Tokyo
Chuo Ward, Tokyo

Kanematsu Bldg.

Chuo Ward, Tokyo

Ginza Sanwa Bldg.

Chuo Ward, TokyoBYGS Shinjuku
Bldg.

MS Shibaura Bldg.

Shinjuku Ward,Tokyo
Minato Ward,
Tokyo

Total
Value

Payment
duringthe 28th
Fiscal Period

AmountAlreadyPaid

May 2016~May 2016

133

－

－

Mar. 2016~Mar. 2016

99

－

－

Sept. 2015~Feb. 2016

90

－

－

Apr. 2016~Jun. 2016

72

－

－

Nov. 2015~Jun. 2016

57

－

－

Jun. 2016~Jun. 2016

53

－

－

Mar. 2016~Mar. 2016

38

－

－

PurposeSchedule

1st phase of replacement of air
conditioning units and other construction
Replacement of air conditioning units on
the 8th floor

Replacement of air conditioning units andinstallation of office automation floors
3rd phase of renewal of through-the-wall
air conditioning units
1st phase of repair of common areas
Replacement of disaster prevention
monitoring board

Renovation of the entrance hall andreplacement of toilets(2) Capital Expenditures during the 28th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 28th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting
new tenants. In addition, aside from these constructions, JPR conducted construction of 276 million yen (Note), which wasappropriated as expenditures for repair and maintenance.
Property Name

Location

Gotanda First Bldg.

Shinagawa Ward, Tokyo

Kanematsu Bldg.

Chuo Ward, Tokyo

JPR Ningyocho Bldg.

Chuo Ward, Tokyo

PeriodReplacement of ceilings andair conditioning units

Jun. 2015~Dec. 2015

389

Jun. 2015~Jul. 201576

Sept. 2015~Dec. 201565

2nd phase of renewal ofthrough-the-wall air
conditioning units
Repair of exterior walls

Other Properties

Construction
Expenses(millions of yen)

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

Total

314
846

(Note) Expenditures for repair and maintenance included 5 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

44

44

Japan Prime Realty Investment Corporation(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs andmaintenance plans 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

46

24th Fiscal Period(Jul. 1, 2013 Dec. 31, 2013)(Millions of yen)

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

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

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

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

816

805

925

877

934

565

591

378

473

276

576

471

426

416

270

805

925

877

934

940

45

III. Asset Management Report

5. Expenses and Liabilities(1) Details of Expenses Related to Management
27th Fiscal Period(Jan. 1, 2015 - Jun. 30, 2015)

Item(a) Asset Management Fees (Note)
Fixed compensation

503,437

75,000

Incentive-based compensation 1
Incentive-based compensation 2(c) Directors' Fee

75,000251,738

77,38882,481

177,894

6,600(d) Trust Fees

6,600

31,051

31,548708,916

720,796

90,438

Total

504,632

255,080
173,357(b) Administrative Service and Custodian Fees(e) Other Expenses(Thousands of yen)

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

95,533(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (27th fiscal period: 10,000 thousand yen,
28th fiscal period: 1,965 thousand yen) have been paid and included in the book value of each property.

(2) Status of Loans Payable
As of December 31, 2015 JPR has the following loans payable.

Long-Term Loans Payable

Short-Term
Loans
PayableCategory

46

LenderDrawdown
Date

Sumitomo Mitsui Trust Bank, Limited

Mar. 26, 2015

Total

Balance as Balance as
Averageof Jul. 1,of Dec. 31, Interest Rate
2015
2015
(%)
(millions of (millions of(Note 1)yen)
yen)
(Note 2)
1,000

1,000

1,000

1,000

5,000

0.330%

Repayment
Date

Repayment
MethodUse

RemarksMar. 25, 2016

Principal
lump sum
repayment
on maturity(Note 3)

Unguaranteed/

Principal
lump sum
repayment
on maturity(Note 3)

Mizuho Bank, Ltd.

Feb. 4, 2011

5,000

1.414%

Feb. 4, 2016

Mizuho Bank, Ltd.

Mar. 30, 2012

7,000

7,000

1.093%

Mar. 30, 2017

Mizuho Bank, Ltd.

Dec. 5, 2012

2,000

2,000

1.027%

Dec. 5, 2019

Mizuho Bank, Ltd.

Nov. 27, 2013

3,000

3,000

0.970%

Nov. 27, 2020

Mizuho Bank, Ltd.

Jun. 27, 2014

5,000

5,000

1.178%

Jun. 27, 2023

Mizuho Bank, Ltd.

Mar. 11, 2015

2,000

2,000

1.011%

Mar. 11, 2024

Mizuho Bank, Ltd.

Mar. 24, 2015

2,000

2,000

1.056%

Mar. 24, 2025

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mar. 25, 2011

5,000

5,000

1.198%

Mar. 25, 2016

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2012

1,000

1,000

1.178%

Aug. 8, 2019

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2012

1,000

1,000

0.948%

Aug. 8, 2017

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sept. 5, 2012

3,000

3,000

0.919%

Sept. 5, 2017

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Dec. 5, 2012

1,000

1,000

1.027%

Dec. 5, 2019

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Nov. 27, 2013

3,000

3,000

0.970%

Nov. 27, 2020

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Jun. 27, 2014

4,000

4,000

0.889%

Jun. 25, 2021

Sumitomo Mitsui Banking Corporation

Mar. 30, 2012

6,400

6,400

1.093%

Mar. 30, 2017

Sumitomo Mitsui Banking Corporation

Dec. 5, 2012

1,000

1,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

Jun. 27, 2013

3,000

3,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

2,500

1.033%

Jun. 27, 2022

Shinsei Bank, Ltd.

Apr. 5, 2012

5,000

5,000

1.397%

Apr. 5, 2019

Shinsei Bank, Ltd.

Sept. 24, 2013

2,000

2,000

1.076%

Sept. 24, 2020

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134%

Dec. 5, 2024

Aozora Bank, Ltd.

Jul. 3, 2012

900

900

0.994%

Jul. 3, 2017

Aozora Bank, Ltd.

Aug. 8, 2012

2,000

2,000

1.178%

Aug. 8, 2019

Aozora Bank, Ltd.

Aug. 27, 2012

2,000

2,000

0.985%

Aug. 25, 2017

Aozora Bank, Ltd.

Aug. 30, 2012

2,000

2,000

1.146%

Aug. 30, 2018

Aozora Bank, Ltd.

Sept. 30, 2013

1,000

1,000

1.069%

Sept. 24, 2020

Development Bank of Japan Inc.

Jun. 26, 2009

2,800

2,700

3.190%

Jun. 27, 2019

Unsecured/

Non-SubordinatedUnsecured/

Unguaranteed/

Non-Subordinated(Note 4)47

Japan Prime Realty Investment Corporation

Category

LenderBalance as Balance as
Averageof Jul. 1,of Dec. 31, Interest Rate
2015
2015
(%)
(millions of (millions of(Note 1)yen)
yen)
(Note 2)

Repayment
Date

Development Bank of Japan Inc.

Jun. 27, 2013

820

820

1.449%Development Bank of Japan Inc.

Dec. 5, 2013

2,000

2,000

1.188%

Dec. 3, 2021

Development Bank of Japan Inc.

Mar. 24, 2015

2,000

2,000

1.056%

Mar. 24, 2025

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2012

4,000

4,000

1.093%

Mar. 30, 2017

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

3,000

1.076%

Feb. 4, 2020

Aug. 29, 2011

5,000

5,000

1.184%

Aug. 29, 2017

Aug. 29, 2011

1,000

－

0.924%

Aug. 31, 2015

Aug 31, 2015

－

1,000

0.873%

Aug. 31, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2011

2,000

2,000

1.170%

Jul. 7, 2016

The Bank of Fukuoka, Ltd.

Apr. 11, 2012

2,000

－

0.902%

Oct. 9, 2015

The Bank of Fukuoka, Ltd.

Sept. 24, 2013

1,000

1,000

0.911%

Sept. 24, 2019

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

－

2,000

0.816%

Oct. 6, 2023

Meiji Yasuda Life Insurance Company

Jun. 21, 2011

3,538

3,472

1.800%

Jun. 21, 2018

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042%

Feb. 5, 2025

Sompo Japan Nipponkoa Insurance Inc.

Apr. 11, 2012

2,000

2,000

0.981%

Oct. 11, 2016

Sompo Japan Nipponkoa Insurance Inc.

Jun. 27, 2012

2,000

－

0.874%

Dec. 25, 2015

Sompo Japan Nipponkoa Insurance Inc.

Dec. 25, 2015

－

2,000

0.759%

Dec. 25, 2023

ORIX Bank Corporation

Feb. 4, 2013

1,000

1,000

0.786%

Feb. 5, 2018

ORIX Bank Corporation

Nov. 27, 2013

2,000

2,000

0.762%

May 27, 2019

Shinkin Central Bank

Dec. 5, 2013

3,000

3,000

0.689%

Dec. 5, 2018

The Shinkumi Federation Bank

Feb. 4, 2013

3,000

3,000

0.786%

Feb. 5, 2018

Taiyo Life Insurance Company

Sept. 24, 2010

1,000

－

1.275%

Sept. 24, 2015

Taiyo Life Insurance Company

Jun. 4, 2013

1,000

1,000

0.949%

Jun. 4, 2018

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

Sept. 24, 2015

－

1,000

0.969%

Sept. 24, 2024

The Chugoku Bank, Ltd.

Apr. 11, 2012

2,000

－

0.902%

Oct. 9, 2015

The Chugoku Bank, Ltd.

Sept. 24, 2013

1,000

1,000

0.758%

Sept. 25, 2018

The Chugoku Bank, Ltd.

Oct. 9, 2015

－

2,000

0.816%

Oct. 6, 2023

The Nishi-Nippon City Bank, Ltd.

May 27, 2011

3,000

3,000

1.149%

May 27, 2016

The Hachijuni Bank, Ltd.

Apr. 11, 2012

1,000

－

0.902%

Oct. 9, 2015

The Hachijuni Bank, Ltd.

Sept. 24, 2014

1,000

1,000

0.424%

Sept. 26, 2016

The Hachijuni Bank, Ltd.

Oct. 9, 2015

－

1,000

0.489%

Oct. 9, 2020

Resona Bank, Limited

Mar. 30, 2012

2,000

2,000

1.093%

Mar. 30, 2017

The Iyo Bank, Ltd.

Apr. 11, 2012

1,000

－

0.902%

Oct. 9, 2015

The Iyo Bank, Ltd.

Oct. 9, 2015

－

1,000

0.816%

Oct. 6, 2023

Daido Life Insurance Company

Dec. 27, 2013

1,000

1,000

0.710%

Dec. 27, 2018

Dec. 27, 2013

1,000

1,000

0.710%

Dec. 27, 2018

1,000

1,000

0.440%

Dec. 5, 2017

133,958

133,792

Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation

Long-Term Loans Payable

Drawdown
Date

Tokio Marine & Nichido Fire InsuranceCo., Ltd.
The Norinchukin Bank
Total

Dec. 5, 2014

Repayment
MethodUse

Remarks(Note 3)

Unguaranteed/

Jun. 25, 2021

Principal
lump sum
repayment
on maturity(Note 5)

Unsecured/

Non-SubordinatedPrincipal
lump sum
repayment
on maturity(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to 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 redemptionof investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter on the 27th day of every 6 months. In addition, repayment of
2,100 million yen will be made on maturity date June 27, 2019.
(Note 5) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter on the 27th day of every 6 months. In addition, repayment of 3,208
million yen will be made on maturity date June 21, 2018.

48

47

III. Asset Management Report(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of December 31, 2015 are as follows.
Balance as of
Balance as of
CouponRate
Jul. 1, 2015
Dec. 31, 2015(%)
(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Thirteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

7,000

7,000

0.950

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.340

Oct. 25, 2018

Nov. 22, 2012

5,000

5,000

0.680

Nov. 22, 2017

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

May 31, 2013

5,000

5,000

0.650

May 31, 2018

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

2,000

2,000

0.303

Jul. 22, 2019

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

41,50041,500Fifteenth Series ofInvestment Corporation
Bonds
Sixteenth Series ofInvestment Corporation
Bonds
Seventeenth Series ofInvestment Corporation
Bonds
Eighteenth Series ofInvestment Corporation
Bonds

Nineteenth Series ofInvestment Corporation
Bonds
Twentieth Series ofInvestment Corporation
Bonds
Twenty-first Series ofInvestment Corporation
Bonds

Twenty-second Series ofInvestment Corporation
Bonds
Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

(Note 1) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds.

(Note 2) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.

(4) Subscription Rights to Shares
Not applicable48

49

Japan Prime Realty Investment Corporation

6. Acquisitions and Sales during the 28th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Type of
Asset

Acquisition
AcquisitionPrice
Acquisition
(thousands
Dateof yen)(Note 1)

Real Estate
Name
Shinjuku

Real estate(Note 2)

Sale
Sale Date

Sale Price(A)(Note 1)

Book Value(B)(thousandsof yen)Difference(C)(A) – (B)(thousandsof yen)Sale
Expense(D)(thousandsof yen)Sale Profit
and Loss(C) – (D)(thousandsof yen)SquareOct. 21, 2015

786,000

-

-

-

-

-

-

Total

-

786,000

-

-

-

-

-

-

Tower

(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) JPR already owns trust beneficiary interest A (initial acquisition in the fiscal period ended December 2004) and B (additional acquisition in the fiscal period ended

December 2008 and additional acquisition in the fiscal period ended June 2015) in some portions of the above-mentioned property as assets in trust. With regard

to the ownership of a portion of the property (the latest additional acquisition), an additional trust agreement was concluded with the trustee on October 21, 2015

to add it to the trust beneficiary interest B (additional acquisition in the fiscal period ended December 2008 and additional acquisition in the fiscal period ended
June 2015). Accordingly, JPR currently owns it also as trust beneficiary interest.

(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 28th fiscal period.

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

Type of Asset

Real Estate
Name

Real estate

Shinjuku Square

Acquisition(Note 3)Tower

Transaction
Date

Acquisition
Price or Sale
Price (Note 1)(thousands ofyen)Real EstateAppraisal
Value (Note 2)(thousands ofyen)Real EstateAppraiser

Appraisal Date

Oct. 21, 2015

786,000

921,000

Japan Valuers

Oct. 1, 2015

(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) JPR already owns trust beneficiary interest A (initial acquisition in the fiscal period ended December 2004) and B (additional acquisition in the fiscal period ended

December 2008 and additional acquisition in the fiscal period ended June 2015) in some portions of the above-mentioned property as assets in trust. With regard

to the ownership of a portion of the property (the latest additional acquisition), an additional trust agreement was concluded with the trustee on October 21, 2015

to add it to the trust beneficiary interest B (additional acquisition in the fiscal period ended December 2008 and additional acquisition in the fiscal period ended
June 2015). Accordingly, JPR currently owns it also as trust beneficiary interest.

(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of specified assets or other deals with interested parties and major shareholders were conducted during the 28th
fiscal period.
2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

243,978

Outsourcing Fees
Tenant Brokerage Fees

534,864
38,716

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
212,118
Taisei-Yuraku Real Estate Co., Ltd.
3,443
Tokyo Tatemono Co., Ltd.
424,360
Tokyo Tatemono Co., Ltd.
13,044(Thousands of yen)
Ratio to Total
Amount
(B/A)
86.9%
1.4%
79.3%
33.7%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreementwith JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27of the regulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.

(Note 2) The management fees indicated in the above table include construction management fees (total of 15,766 thousand yen) appropriated as assets and not handled as
expenses.

50

49

III. Asset Management Report(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 28th fiscal period.
Tokyo Tatemono Co., Ltd.

366,035 thousand yen

Tokyo Real Estate Management Co., Ltd.

439,850 thousand yen

Taisei-Yuraku Real Estate Co., Ltd.

Shinjuku Center Building Management Co., Ltd.

267 thousand yen

38,579 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class
1 financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

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

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

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

50

51

Japan Prime Realty Investment Corporation

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

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

－

40

January 22, 2002 (Note)

60

－

100

Accumulated Total

100

－

100

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

(2) Units Held
Number of Units Held at End of
Period19th Fiscal Period(Jan. 1, 2011 – Jun. 30, 2011)

20th Fiscal Period(Jul. 1, 2011 – Dec. 31, 2011)
21st Fiscal Period(Jan. 1, 2012 – Jun. 30, 2012)

22nd Fiscal Period(Jul. 1, 2012 – Dec. 31, 2012)
23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)
25th Fiscal Period(Jan. 1, 2014 – Jun. 30, 2014)

26th Fiscal Period(Jul. 1, 2014 – Dec. 31, 2014)
27th Fiscal Period(Jan. 1, 2015 – Jun. 30, 2015)

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

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

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

5351

III. Asset Management Report

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

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

11. Other(1) Notice1) General Meeting of Unitholders
The Tenth General Meeting of Unitholders of JPR was held on September 8, 2015.
Items approved at the General Meeting of Unitholders are summarized below.
AgendaPartial amendments to the Articles ofIncorporation

Appointment of one Executive
Officer

Appointment of one SubstituteExecutive Officer

Appointment of two Supervising
Officers
Appointment of one SubstituteSupervising Officer

2) Board of Directors of JPR

Overview
Amendments were made to the following items of the Articles of Incorporation.
(1) In accordance with the revisions to the Enforcement Regulations for the Act on Investment Trusts and Investment
Corporations (the “Enforcement Regulations for the Investment Trusts Act”), amendments were made to stipulatethat JPR’s purpose is to manage its assets as investments primarily in real estate assets and such (as defined under
Article 105-1 of the Enforcement Regulations for the Investment Trusts Act..
(2) In accordance with the revisions to the Act on Investment Trusts and Investment Corporations (the “Investment
Trusts Act”), provisions were newly established or deleted as follows:
1) New provisions were established to stipulate that a general meeting of unitholders to be held within 25 months
after a general meeting of unitholders that was held in accordance with Article 10-1 of the current Articles ofIncorporation shall not require a public notice of its convocation.
2) New provisions were established to stipulate that the term of office of directors may be extended or shortened tothe extent permitted by laws and regulations, pursuant to the resolution of the general meeting of unitholders.
3) In accordance with the revisions to the Investment Trusts Act put into force, supplementary provisions
concerning the effectuation of such revision were deleted.
(3) With regard to the issue of inconsistency between profits for accounting purposes and tax purposes at an
investment corporation, amendments were made to stipulate that, in its distribution policies, JPR may make cash
distributions in excess of earnings in order to reduce its tax burdens, in accordance with the revisions to theOrdinance on Accounting of Investment Corporations.
(4) As renewable energy generation facilities and the rights to operate public facilities, etc. were included in the scopeof specified assets due to the revisions to the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations, provisions were newly established or amended to reflect the inclusion.
(5) As the requirements for an investment corporation to apply for special taxation measures due to the revisions to
the Ordinance for Enforcement of the Act on Special Measures Concerning Taxation, relevant provisions weredeleted.
(6) Other than the above, necessary provisions were established, expressions were changed and clarified, and othercorrections were made to the terminology.
Hirohito Kaneko was appointed as Executive Officer.
Satoshi Okubo was appointed as Substitute Executive Officer.
Masato Denawa and Nobuhisa Kusanagi were appointed as Supervising Officers.
Masaaki Sugiyama was appointed as Substitute Supervising Officer.

Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the
28th fiscal period include the following:5254

Japan Prime Realty Investment Corporation

Date of Board of
Directors
Meeting
August 14, 2015

December 17,
2015

Approved Item

Overview

Conclusion of memorandum concerning㻌
amendments to the asset management
consignment agreement

Reviews were made to necessary articles of the asset management consignment agreement,
subject to the approval of the proposed amendments to the Articles of Incorporation at theTenth General Meeting of Unitholders of JPR held on September 8, 2015.

Conclusion of memorandum on
December 17, 2015 concerning thegeneral administration and asset custody
entrustment agreement and the special
account administration agreement inaccordance with the enforcement of the
Act on the Use of Numbers to Identify aSpecific Individual in the
Administrative Procedure (“MyNumber” system)

A memorandum and other documents were concluded with Mizuho Trust & Banking Co., Ltd.
concerning the handling of the individual numbers, etc. upon conducting its assignments on
cash distributions, income tax and other matters in terms of operations related to theinvestment units and administration of special accounts, which JPR has entrusted to Mizuho
Trust & Banking, in accordance with the enforcement of the Act on the Use of Numbers to
Identify a Specific Individual in the Administrative Procedure (“My Number” system) on
January 1, 2016.

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

5553

IV. Financial Statements(1) Balance Sheets

AssetsCurrent assets
Cash and deposits*1

Accumulated depreciation
Buildings in trust, net

44,863,701
86,397,314*1(16,782)

35,91634,946

119,586

Accumulated depreciation

119,876(68,497)

Structures in trust, net(71,656)

51,089Machinery and equipment

48,219726,505

Accumulated depreciation*1

Accumulated depreciation

726,505(361,244)
365,261*1

1,614,860(1,205,616)

Machinery and equipment in trust, net

59,247(32,101)

Tools, furniture and fixtures, net(34,503)25,820Tools, furniture and fixtures in trust

24,743

160,667

Accumulated depreciation

169,164(107,680)

Tools, furniture and fixtures in trust, net*1(113,246)

52,987

108,898,331
173,295,562

46,308345,817

1,616,054

374,236

57,922

Accumulated depreciation(380,688)(1,241,817)

409,244

Tools, furniture and fixtures

87,256,990

51,728(15,414)Structures, net

44,282,231

59,612,627

51,330

Structures in trust(12,686,626)(27,644,362)

59,771,891

Accumulated depreciation*1

55,917

108,898,331

173,871,178

1,957

387,816,114

387,550,206

Leasehold right

4,794,109

4,794,109

Total intangible assets

4,796,565

4,796,000

145,462

194,720

Intangible assets
Other

Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses

Total investments and other assets

Total noncurrent assets

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

5456

56,968,858(11,898,708)(26,625,423)

Structures

Total property, plant and equipment

10,91625,818,070

56,762,410

Accumulated depreciation

Construction in progress

162,693

25,569,883

Noncurrent assets
Property, plant and equipment
Buildings

Land in trust

308,075

44,967

Total current assets

Land

11,831,284

127,407

Other

Machinery and equipment in trust

13,505,100

332,870

Prepaid expenses

Machinery and equipment, net

㻌12,278,621

Operating accounts receivable

Buildings in trust

End of 28th Fiscal Period(Dec. 31, 2015)㻌㻌
12,786,017

Cash and deposits in trust

Buildings, net(Thousands of yen)

End of 27th Fiscal Period(Jun. 30, 2015)

2,455

198,875
344,337

1,890

158,096352,817392,957,018

392,699,024

207,020

185,149

251,966

222,445

44,946

418,778,869

37,295

418,739,540

Japan Prime Realty Investment Corporation

Liabilities
Current liabilities
Operating accounts payable(Thousands of yen)

End of 27th Fiscal Period(Jun. 30, 2015)

End of 28th Fiscal Period(Dec. 31, 2015)
㻌㻌㻌

2,146,009

2,209,614

Current portion of long-term loans payable

23,332,000

18,332,000

Accounts payable-other

1,392,268

Short-term loans payable

1,000,000

Current portion of investment corporation bonds

1,000,000
7,000,000－

Accrued expenses

645,043

99,147

Income taxes payable

108,133

605

Accrued consumption taxes

605

179,892

277,127

Total current liabilities

30,765,983

32,181,772

Long-term loans payable

110,626,000

Advances received

2,616,060

Noncurrent liabilities
Investment corporation bonds
Tenant leasehold and security deposits

Tenant leasehold and security deposits in trust

41,500,000*1

Total noncurrent liabilities*1

Total voluntary reserve

210,395,598

210,395,598

73,94673,94673,946

5,623,366

Total surplus

5,769,258

5,697,313

Total unitholders' equity*3

7,537,730

12,821,233

202,500,736

73,946

Unappropriated retained earnings(undisposed losses)

115,460,000

170,318,963

202,685,957

Net assets
Unitholders' equity
Unitholders' capital
Surplus㻌 㻌 Voluntary reserve
Reserve for reduction entry

Total net assets

7,562,635

12,231,338

34,500,000

171,919,974

Total liabilities

Total liabilities and net assets

2,609,250

5,843,205

216,092,911

216,092,911

418,778,869*3

216,238,803

216,238,803

418,739,540

5755

IV. Financial Statements(2) Statements of Income and Retained Earnings

Operating revenue㻌㻌 Rent revenue-real estate㻌Total operating revenue

Operating expenses
㻌 Expenses related to rent business
㻌
㻌
㻌
㻌
㻌
㻌

Asset management fee

Administrative service and asset custody fees
Directors' compensation
Trust fees

Other operating expenses

Total operating expenses

Operating income

Non-operating income
㻌 Interest income
㻌
㻌
㻌

㻌
㻌
㻌
㻌

㻌
*1

14,251,821
14,251,821

㻌*1

14,105,386*1

6,553,179

㻌
*16,845,645

503,437

77,3886,600

14,105,386
㻌504,632

82,481

6,600

31,051

31,5487,554,562

7,273,976
6,831,410

90,438

6,697,259

95,533

㻌

㻌

2,256

2,349

42,062

Total non-operating income

50,749

Other

6,430

1,685
4,033

㻌

8,068
㻌

781,107754,492

Interest expenses on investment corporation bonds

291,995

239,913

Amortization of investment unit issuance expenses

623

Borrowing expenses

Amortization of investment corporation bond issuance costs
Other

Total non-operating expenses

Ordinary income

Extraordinary income
Subsidy income

Total extraordinary income

Income before income taxes
Income taxes-current㻌

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

Income on settlement of management association accounts

Non-operating expenses
㻌 Interest expenses㻌(Thousands of yen)

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

Total income taxes

78,032
26,785

3,181

68,793
21,8717,650

311

1,181,726
5,566,282

1,093,032
5,746,446

37,397

3,837

5,603,679

5,750,284

37,397
605
605

3,837
605
605

Net income

5,603,074

5,749,679

Unappropriated retained earnings (undisposed losses)

5,623,366

5,769,258

Retained earnings brought forward

5658

20,291

19,579Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)

27th Fiscal Period㻌㻌㻌Unitholders' equity

28th Fiscal Period(Jan. 1, 2015 –Jun. 30, 2015)(Jul. 1, 2015 –Dec. 31, 2015)

㻌㻌㻌
192,044,238

㻌
210,395,598

18,351,360－

210,395,598

210,395,598

Balance at beginning of current period

73,94673,946－－

Balance at end of current period

73,94673,946

5,259,866

5,623,366(5,239,575)(5,603,787)

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

Total changes of items during the period

Balance at end of current period

Surplus
Voluntary reserve

Changes of items during the period
Total changes of items during the period
Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income

Total changes of items during the period

18,351,360

5,603,074

363,499－

5,749,679

145,892

Balance at end of current period

5,623,366

5,769,258

Balance at beginning of current period
Changes of items during the period

5,333,813

5,697,313

Balance at end of current period

5,697,313

5,843,205

197,378,051

216,092,911

Total surplus

Total changes of items during the period

Total unitholders' equity
Balance at the beginning of current period

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

363,499

18,714,859

145,892

145,892

Total net assets
Balance at beginning of current period

216,092,911

216,238,803

197,378,051

216,092,911

Balance at end of current period

216,092,911

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

18,714,859

145,892

216,238,803

5957

IV. Financial Statements(4) Statements of Cash Distributions

I.
II.
III.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

Retained earnings carried forward

Method for calculating distribution amount5860

27th Fiscal Period(January 1, 2015 –June 30, 2015)

28th Fiscal Period(July 1, 2015 –December 31, 2015)

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 5,603,787,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 5,751,324,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

5,623,366,311 yen
5,603,787,000 yen(6,419 yen)
19,579,311 yen

5,769,258,606 yen
5,751,324,000 yen(6,588 yen)
17,934,606 yen

Japan Prime Realty Investment Corporation(5) Statements of Cash FlowsNet cash provided by (used in) operating activities㻌㻌㻌

28th Fiscal Period(Jan. 1, 2015 –Jun. 30, 2015)(Jul. 1, 2015 –Dec. 31, 2015)

Income before income taxes

Depreciation and amortization

㻌
㻌
㻌
㻌
㻌
㻌
㻌
㻌
㻌
㻌
㻌
㻌
㻌

㻌

㻌
㻌
㻌
㻌

Interest income㻌Interest expenses

Decrease (increase) in operating accounts receivable

㻌

7,650

(2,349)1,073,103

994,406

47,374(35,286)(71,882)

Decrease (increase) in prepaid expenses

Increase (decrease) in operating accounts payable

24,794

18,834

Increase (decrease) in accounts payable-other172,409

Increase (decrease) in advances received

50,801

Increase (decrease) in accrued consumption taxes(283,603)(136,511)(81,742)

Other, net

97,234(6,810)(186,454)

40,162

Subtotal

8,505,994

8,347,406

Interest expenses paid

(1,124,559)(985,420)

Net cash provided by (used in) operating activities

7,383,073

7,363,711
㻌

Purchase of property, plant and equipment(167,304)

Interest income received

2,256

Income taxes (paid) refund

2,349

(618)

(623)

㻌

(87,534)

Purchase of property, plant and equipment in trust(4,586,723)(1,174,178)

Repayments of tenant leasehold and security deposits(102,061)(119,849)

Repayments of tenant leasehold and security deposits in trust(48,588)(693,748)(4,208,688)(1,324,972)
㻌(49,257)

Proceeds from tenant leasehold and security deposits

Proceeds from tenant leasehold and security deposits in trust

716,213

㻌
15,000,000－(14,000,000)

Proceeds from long-term loans payable－

7,000,000

Repayment of long-term loans payable(10,166,000)－

18,350,172－(13,000,000)

Dividends paid

(5,238,285)

Net cash provided by (used in) financing activities

10,000,000(9,566,000)

Redemption payment of investment corporation bonds(5,600,993)(1,454,113)(5,766,993)

1,720,271

Net changes in cash and cash equivalents

Cash and cash equivalents at end of current period

83,383433,654

Net cash provided by (used in) investing activities

Cash and cash equivalents at beginning of current period(49,257)

311,592

Proceeds from issuance of investment units㻌21,871(2,256)

Net cash provided by (used in) financing activities
㻌 Increase in short-term loans payable
Repayment of short-term loans payable㻌

1,875,564

623

Payment of tenant leasehold and security deposits㻌㻌
5,750,284

26,785

Net cash provided by (used in) investing activities㻌㻌
5,603,679
1,854,717

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses㻌(Thousands of yen)

27th Fiscal Period*1271,746

23,344,367
25,064,638*1

25,064,638
25,336,385

6159

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

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

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

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



6062

(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:  Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental expenses.
Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as an acquisition cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted to47,294 thousand yen and 2,332 thousand yen for the fiscal periods ended June 30, 2015 and December 31, 2015,
respectively.
Cash and cash equivalents in the Statements of Cash Flows include the following(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)
End of 27th Fiscal Period(as of June 30, 2015)End of 28th Fiscal Period(as of December 31, 2015)
115,165

Buildings (net)113,296

2,910

Machinery and equipment (net)

2,739

399,183Land

399,183

517,259

Total

515,219

Secured liabilities are as follows:(Thousands of yen)
End of 27th Fiscal Period(as of June 30, 2015)

Tenant leasehold and security deposits
Total

End of 28th Fiscal Period(as of December 31, 2015)
15,536

15,536

15,536

15,536

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.

(Thousands of yen)
End of 27th Fiscal Period(as of June 30, 2015)

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

End of 28th Fiscal Period(as of December 31, 2015)
28,000,000

28,000,000－－

28,000,000

28,000,000*3. Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)

End of 27th Fiscal Period(as of June 30, 2015)

End of 28th Fiscal Period(as of December 31, 2015)
50,00050,0006361

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

27th Fiscal Period(January 1, 2015 –June 30, 2015)

A. Rent Revenue-Real Estate
Rent Revenue

28th Fiscal Period(July 1, 2015 –December 31, 2015)

Rents
Land rents
Common charges

9,408,080
1,555,500
1,825,436

9,511,054
1,581,000
1,755,981

Antenna use fees

19,341

21,022

Parking revenues
Advertising expenses

256,880
60,309Other

257,162
61,001

33,652
13,159,200

13,223,806

721,270778,335

Income equivalent to expenses for restoration
to original condition

250,277

36,448Other miscellaneous income

22,994

23,649Other rental revenues
Incidental income

Subtotal

36,583Time-based parking revenues
Cancellation charges

5,244
92,834

5,503
37,643

Subtotal

1,092,620

881,579

Total rent revenue-real estate

14,251,821

14,105,386

527,575
898,434

531,924
876,068

B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses

Property and other taxes

Casualty insurance
Repairs and maintenance2,026,740

2,019,291

238,809576,345

228,211
581,485

27,306566,510

Property management fees
Management association accounts
Depreciation
Other

Total expenses related to rent business
C. Profits(A-B)

28,053
270,370

1,854,217
129,705

1,875,064
142,709

6,845,645

6,553,179

7,406,176

7,552,207(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

6264

27th Fiscal Period(January 1, 2015 – June 30, 2015)

28th Fiscal Period(July 1, 2015 – December 31, 2015)5,000,000 units

5,000,000 units

873,000 units

873,000 units

Japan Prime Realty Investment Corporation(Notes to Statements of Cash Flows)*1. Relationship between the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows and the Amounts of theCorresponding Accounts on the Balance Sheets(Thousands of yen)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

28th Fiscal Period(July 1, 2015 – December 31, 2015)

12,786,017

13,505,100

12,278,621

11,831,284

25,064,638

25,336,385(Leases)

Future lease revenues under non-cancelable operating leases

(Thousands of yen)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

28th Fiscal Period(July 1, 2015 – December 31, 2015)

Due within one year

7,177,460

7,101,796

Due after one year

22,973,529

19,442,194

Total

30,150,990

26,543,990

(Financial Instruments)

1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments

In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement ofshort-term funds that emphasize flexibility.

There may be cases where JPR will engage in derivative transactions, but such will be limited to management for interest rate
fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure

Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.

Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit risks, but risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing acommitment line agreement with the main lending financial institutions, and also having statements of cash receipts anddisbursements prepared by the financial division.

(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values based on reasonablecalculations when there is no market price. Certain assumptions, etc. are used in calculating those values and there may be cases
where the values will vary when different assumptions, etc. are used.

2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of June 30, 2015 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).

6563

IV. Financial Statements

Carrying Value(Note 1)

(1)Cash and deposits(2)(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference

12,786,017

12,786,017－

Cash and deposits in trust

12,278,621

12,278,621－(3)

Short-term loans payable(1,000,000)(1,000,000)－(4)

Current portion of long-term loans payable(23,332,000)(23,443,935)

111,935(5)

Current portion of investment corporation bonds

－

－

－

(6)

Investment corporation bonds(41,500,000)(42,727,038)

1,227,038(7)

Long-term loans payable(110,626,000)(112,589,841)

1,963,841

The following are the carrying values and estimated fair values as of December 31, 2015 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).
Carrying Value(Note 1)

(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

13,505,100

13,505,100－(2)Cash and deposits in trust

11,831,284

11,831,284－(3)

Short-term loans payable(1,000,000)(1,000,000)－(4)

Current portion of long-term loans payable(18,332,000)(18,386,891)

54,891(5)

Current portion of investment corporation bonds(7,000,000)(7,043,400)

43,400(6)Investment corporation bonds(34,500,000)(36,000,242)

1,500,242(7)

Long-term loans payable(115,460,000)(117,806,618)

2,346,618(Note 1) Liabilities are shown in parentheses.

(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust

As these financial instruments are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thusstated at that book value.

(3) Short-term loans payable

As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the book value and is thus stated at that book value.

(4) Current portion of long-term loans payable, and (7) Long-term loans payable

Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as

it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans
payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being
applicable in the event of a new drawdown corresponding to the remaining loan term.

(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds

Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.

(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult.

Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since

it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.

Category

6466

End of 27th Fiscal Period(as of June 30, 2015)(Thousands of yen)

End of 28th Fiscal Period(as of December 31, 2015)

Tenant leasehold and security deposits

7,562,635

7,537,730

Tenant leasehold and security deposits in trust

12,231,338

12,821,233

Japan Prime Realty Investment Corporation(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 27th fiscal period (June 30, 2015)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

12,786,017

－

－

－

－

－

Cash and deposits in trust

12,278,621

－

－

－

－

－

Scheduled redemption of monetary claims to be due after the account closing date of the 28th fiscal period (December 31, 2015)

Due after Five
Years(Thousands of yen)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

13,505,100

－

－

－

－

－

Cash and deposits in trust

11,831,284

－

－

－

－

－

Due after Five
Years

(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after theaccount closing date of the 27th fiscal period (June 30, 2015)
Short-term loans payable

Due in One
Year or Less

Due after Two
Years throughThree Years

1,000,000

－

－

－

－

－

－

7,000,000

10,000,000

2,000,000

4,000,000

18,500,000

23,332,000

24,732,000

21,374,000

17,200,000

14,000,000

33,320,000

Investment corporation bonds
Long-term loans payable(Thousands of yen)
Due after One
Year throughTwo Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after theaccount closing date of the 28th fiscal period (December 31, 2015)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Short-term loans payable

1,000,000

－

－

－

－

－

Investment corporation bonds

7,000,000

5,000,000

7,000,000

4,000,000－

18,500,000

Long-term loans payable

18,332,000

32,632,000

16,408,000

17,100,000

17,000,000

32,320,000Due after Three Due after FourYears through Years throughFour Years
Five Years

Due after Five
Years

(Securities)

27th fiscal period (as of June 30, 2015)
Not applicable

28th fiscal period (as of December 31, 2015)
Not applicable(Derivative Transactions)27th fiscal period (as of June 30, 2015)
Not applicable as JPR conducted no derivative transactions
28th fiscal period (as of December 31, 2015)
Not applicable as JPR conducted no derivative transactions(Retirement Benefits)

27th fiscal period (as of June 30, 2015)
Not applicable as JPR does not have any retirement benefit system
28th fiscal period (as of December 31, 2015)
Not applicable as JPR does not have any retirement benefit system

6765

IV. Financial Statements(Tax Effect Accounting)

1. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting



27th Fiscal Period(January 1, 2015 – June 30, 2015)

Effective statutory tax rate
(Adjustment)

28th Fiscal Period(July 1, 2015 – December 31, 2015)34.15%


(34.15%)(32.31%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Deductible cash distributions

(Equity Method Income and Retained Earnings)

27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable as JPR does not have any affiliated companies
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)

1. Parent Company and Major Corporation Unitholders
27th fiscal period (January 1, 2015 – June 30, 2015)

Not applicable
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable

2. Subsidiaries
27th fiscal period (January 1, 2015 – June 30, 2015)

Not applicable
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable

3. Sister Companies
27th fiscal period (January 1, 2015 – June 30, 2015)

Not applicable
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable

4. Directors and Major Individual Unitholders
27th fiscal period (January 1, 2015 – June 30, 2015)

Not applicable
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable(Asset Retirement Obligations)27th fiscal period (January 1, 2015 – June 30, 2015)

Not applicable
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.

6668

32.31%

Japan Prime Realty Investment Corporation[Related Information]
27th fiscal period (January 1, 2015 – June 30, 2015)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenues on theStatements of Income and Retained Earnings.

28th fiscal period (July 1, 2015 – December 31, 2015)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenues on theStatements of Income and Retained Earnings.

6967

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

Carrying Value on the Balance Sheets
Balance at Beginning of Period

27th Fiscal Period(January 1, 2015 – June 30, 2015)
389,724,535

Amount of Increase (Decrease) during the Period392,612,013

2,887,478

Balance at End of Current Period(Thousands of yen)

28th Fiscal Period(July 1, 2015 – December 31, 2015)

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

(265,973)

392,612,013
401,948,000

392,346,040

411,481,000(Note 2) Of the amount of increase (decrease) the amount of increase for the 27th fiscal period is primarily attributable to additional acquisition of Shinjuku Square Tower(4,076,809 thousand yen), and the amount of decrease for the period is primarily attributable to depreciation (1,854,217 thousand yen). The amount of increase
for the 28th fiscal period is primarily attributable to additional acquisition of Shinjuku Square Tower (807,283 thousand yen), and the amount of decrease for theperiod is primarily attributable to depreciation (1,875,064 thousand yen).

(Note 3) The estimated fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 27th and 28th fiscal periods for investment and rental properties are as presented in the “Notes toStatements of Income and Retained Earnings.”(Per Unit Information)


27th Fiscal Period(January 1, 2015 – June 30, 2015)

28th Fiscal Period(July 1, 2015 – December 31, 2015)

247,529 yen

247,696 yen

6, 759 yen

6, 586 yen

27th Fiscal Period(January 1, 2015 – June 30, 2015)
5,603,074

28th Fiscal Period(July 1, 2015 – December 31, 2015)
5,749,679－
5,603,074－
5,749,679

Total net assets per unit
Net income per unit

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

(Note 2) Net income per unit was calculated based on the following data:Net income (thousands of yen)Amounts not attributable to ordinary unitholders (thousands of yen)

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

6870

828,876 units

873,000 units

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

Asset Type

Current Assets

Increase
Decrease
Balance as ofduring theduring theJuly 1, 2015
PeriodPeriod(thousands of(thousands of (thousands of
yen)
yen)
yen)

Accumulated Depreciation

Balance as ofDecember 31,
2015(thousands ofyen)

Or Accumulated
Amortization(thousands of
yen)

-

-

12,686,626
16,782787,918
1,367

44,282,231
34,946

726,505

380,688

19,444

345,817-

59,24734,5032,401

24,743--

108,898,331--

108,898,331

46,308-44,351

1,957

-

-

1,957

166,542,808

208,171

44,351

166,706,628

13,118,600

811,131

153,588,027

86,397,314
119,586

859,675290-

87,256,990
119,876

27,644,362
71,656

1,018,939
3,159

59,612,627
48,2191,614,860

1,193

-

1,616,054

1,241,817

36,201

374,236

160,667

8,496-

169,164

113,246

5,566

55,917173,295,562

575,615-

173,871,178--

173,871,178

-

1,197

1,197

-

-

-

-

Subtotal

261,587,992

1,446,468

1,197

45,548263,033,263

29,071,084

1,063,867

233,962,179

Intangible Assets
Leasehold rights
Other

1,654,639

4,794,109
7,602

-

-

4,794,109
7,602

5,712

565

4,794,109
1,890

Noncurrent Assets(Property, plant andequipment)
Buildings
Structures
Machinery andequipment
Tools, furnitureand fixtures
Land
Construction inprogress
Subtotal(Beneficiary interests
in trust)
Buildings in trust
Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures intrust
Land in trust
Construction inprogress in trust
Total

Total

-

-

-

-

-

56,762,410
51,330206,448
398-

56,968,858
51,728726,505--

57,922

1,324

108,898,331

Depreciation Net Balance as ofDecember 31,
during theRemarks
2015
Period(thousands of (thousands of yen)yen)

428,130,801

4,801,712--

429,739,891

4,801,712

42,189,685

5,712

1,874,998

565

387,550,206

4,796,000(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.

4) Schedule of Other Specified Assets
Not applicable7169

IV. Financial Statements

5) Schedule of Investment Corporation Bonds
Decreaseduring the
Period(thousands ofyen)

Balance as ofDecember 31,
2015(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJuly 1, 2015
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000-

4,500,000

2.900

Dec. 14, 2026

Oct. 25, 2011

7,000,000-

7,000,000

0.950

Oct. 25, 2016

Oct. 25, 2011

2,000,000-

2,000,000

1.340

Oct. 25, 2018

Nov. 22, 2012

5,000,000-

5,000,000

0.680

Nov. 22, 2017

Nov. 22, 2012

2,000,000-

2,000,000

1.030

Nov. 22, 2019

May 31, 2013

5,000,000-

5,000,000

0.650

May 31, 2018

May 31, 2013

2,000,000-

2,000,000

1.460

May 31, 2023

Feb. 5, 2014

5,000,000-

5,000,000

1.110

Feb. 5, 2024

Jul. 22, 2014

2,000,000-

2,000,000

0.303

Jul. 22, 2019

Jul. 22, 2014

4,000,000-

4,000,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000,000-

3,000,000

0.831

Dec. 4, 2024

41,500,000-

41,500,000

Thirteenth Series ofInvestment Corporation
Bonds (Note 1)
Fourteenth Series ofInvestment Corporation
Bonds (Note 1)
Fifteenth Series ofInvestment Corporation
Bonds (Note 1)

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)
Seventeenth Series ofInvestment Corporation
Bonds (Note 1)
Eighteenth Series ofInvestment Corporation
Bonds (Note 1)
Nineteenth Series ofInvestment Corporation
Bonds (Note 1)
Twentieth Series ofInvestment Corporation
Bonds (Note 1)
Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)
Total

Use

Remarks(Note 2)

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

(Note 3) Amounts of investment corporation bonds to be redeemed within five years after the date of the balance sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)

Investment corporation
bonds

7072

7,000,000

5,000,000

7,000,000

4,000,000

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

6) Schedule of Loans Payable

LenderShort-term loans payable
Sumitomo Mitsui Trust Bank, Limited

Increase
Decrease
Balance as
Balance as ofduringduringof July 1,
December 31,
Current
Current
2015
2015
PeriodPeriod(thousands(thousands of(thousands (thousandsof yen)yen)of yen)of yen)

--1,000,000

Total

--1,000,000

LenderAverage
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

0.330%

Mar. 25, 2016

Increase
Decrease
Balance as
Balance as ofduringduringof July 1,
December 31,
Current
Current
2015
2015
PeriodPeriod(thousands(thousands of(thousands (thousandsof yen)yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Mizuho Bank Ltd.

5,000,000--

5,000,000

1.414%

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.027%

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

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Ltd.
Shinsei Bank, Ltd.

Shinsei Bank, Ltd.
Aozora Bank Ltd.

7,000,000
3,000,000
5,000,000
2,000,000
2,000,000
5,000,000
1,000,000
1,000,000
3,000,000
1,000,000
3,000,000
4,000,000
6,400,000
1,000,000
3,000,000
2,500,000
5,000,000
2,000,000
2,000,000

900,000

Aozora Bank Ltd.

2,000,000

Aozora Bank Ltd.

2,000,000

Aozora Bank Ltd.
Aozora Bank Ltd.

Development Bank of Japan, Inc.
Development Bank of Japan, Inc.

2,000,000
1,000,000

2,800,000
820,000--

7,000,000
3,000,000
5,000,000
2,000,000

Mar. 11, 2024

Aug. 8, 2019

1,000,000
3,000,000
1,000,000
3,000,000
4,000,000
6,400,000
1,000,000
3,000,000
2,500,000
5,000,000
2,000,000
2,000,000

900,000

2,000,000

2,000,000
1,000,000

100,000

2,700,000--

2,000,000-

4,000,000

820,000

0.948%

0.970%

Nov. 27, 2020

1.093%

Mar. 30, 20171.265%

Jun. 26, 2020

1.397%

Apr. 5, 20191.027%
1.033%
1.076%
1.134%
0.994%
1.178%

Jun. 27, 2022
Sept. 24, 2020

1.069%

Sept. 24, 2020

1.449%

Jun. 25, 2021

1.056%

Mar. 24, 2025

1.076%

Feb. 4, 2020

(Note 5)5,000,000--

5,000,000

1.184%

Aug. 29, 2017

1,000,000-

1,000,000-

0.924%

Aug. 31, 2015-

1,000,000-

1,000,000

0.873%

Aug. 31, 2023

Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation

-

-

-

3,000,000

1.188%

Aug. 30, 2018

Mitsubishi UFJ Trust and Banking
Corporation

3,000,000

2,000,000

1.093%

Non-SubordinatedJul. 3, 2017

4,000,000

Mizuho Trust & Banking Co., Ltd.

-

Unsecured/Aug. 8, 2019

Mizuho Trust & Banking Co., Ltd.

-

Unguaranteed/

Dec. 5, 2024

2,000,000

2,000,000(Note 4)

Dec. 5, 2019

Development Bank of Japan, Inc.
Development Bank of Japan, Inc.

Remarks

Jun. 25, 2021

Aug. 25, 20173.190%

Use

Dec. 5, 2019

0.985%
1.146%

Non-SubordinatedAug. 8, 2017

Sept. 5, 20170.889%

Unsecured/Mar. 25, 2016

0.919%
1.027%

Unguaranteed/

Jun. 27, 2023

1.178%--

1.011%

1.198%(Note 4)

Dec. 5, 2019

1,000,000-

Nov. 27, 2020

Mar. 24, 2025

2,000,000-

0.970%

1.056%-

Mar. 30, 2017

2,000,000
5,000,000

Remarks

Feb. 4, 2016

1.093%

1.178%

Use

Dec. 3, 2021

Mar. 30, 2017

7371

IV. Financial Statements

Long-Term Loans Payable (Note 1)
The Bank of Fukuoka
The Bank of Fukuoka
The Bank of Fukuoka
The Bank of Fukuoka
Meiji Yasuda Life Insurance Company
Meiji Yasuda Life Insurance Company
Sompo Japan Nipponkoa Insurance Inc.
Sompo Japan Nipponkoa Insurance Inc.
Sompo Japan Nipponkoa Insurance Inc.
ORIX Bank Corporation
ORIX Bank Corporation
Shinkin Central BankThe Shinkumi Federation Bank
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Chugoku Bank
Chugoku Bank
Chugoku Bank
The Nishi-Nippon City Bank, Ltd.
The Hachijuni Bank
The Hachijuni Bank
The Hachijuni Bank
Resona Bank, Ltd.
The Iyo Bank, Ltd.
The Iyo Bank, Ltd.
Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
The Norinchukin Bank
Total

(Note 1)

(Note 3)(Note 4)(Note 5)(Note 6)

7274

Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

2,000,000
2,000,000
1,000,000
3,538,000
1,000,000
2,000,000
2,000,000
1,000,000
2,000,000
3,000,000
3,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,000,000
3,000,000
1,000,000
1,000,000
2,000,000
1,000,000
1,000,000

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

2,000,000
66,0002,000,000
1,000,000
2,000,000
1,000,000
1,000,000-

2,000,000
1,000,000
2,000,000
3,472,000
1,000,000
2,000,000
2,000,000
1,000,000
2,000,000
3,000,000
3,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
3,000,000
1,000,000
1,000,000
2,000,000
1,000,000
1,000,000

1.170%
0.902%
0.911%
0.816%
1.800%
1.042%
0.981%
0.874%
0.759%
0.786%
0.762%
0.689%
0.786%
1.275%
0.949%
1.011%
0.969%
0.902%
0.758%
0.816%
1.149%
0.902%
0.424%
0.489%
1.093%
0.902%
0.816%
0.710%

Jul. 7, 2016
Oct. 9, 2015
Sept. 24, 2019
Oct. 6, 2023
(Note 6)
Feb. 5, 2025
Oct. 11, 2016
Dec. 25, 2015
Dec. 25, 2023
Feb. 5, 2018
May 27, 2019
Dec. 5, 2018
Feb. 5, 2018
Sept. 24, 2015
Unsecured/
Jun. 4, 2018
(Note 4) Unguaranteed/
Dec. 25, 2020
Non-SubordinatedSept. 24, 2024
Oct. 9, 2015
Sept. 25, 2018
Oct. 6, 2023
May 27, 2016
Oct. 9, 2015
Sept. 26, 2016
Oct. 9, 2020
Mar. 30, 2017
Oct. 9, 2015
Oct. 6, 2023
Dec. 27, 2018

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

1,000,000
133,958,000

10,000,000 10,166,000

1,000,000
133,792,0000.440%

Dec. 5, 2017

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable(Note 2)

Increase
Decrease
Balance as of
Balance as ofduringduringDecember 31,
July 1, 2015
Current
Current
2015(thousands ofPeriodPeriod(thousands ofyen)(thousands (thousands
yen)of yen)of yen)18,332,000

32,632,000

16,408,000

17,100,000

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

17,000,000

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

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

73
75

IV. Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)

28th Fiscal Period(July 1, 2015 – December 31, 2015)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)

27th fiscal period (January 1, 2015 – June 30, 2015)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

37,687

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

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

28th fiscal period (July 1, 2015 – December 31, 2015)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

(Note) Transaction terms are determined based on prevailing market conditions.

7476

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

38,312

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
1,249

V. Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of December 31, 2015)
Market capitalization: ¥360.5 billion
High:¥564,000 (May 7, 2007)
Low:¥130,300 (October 28, 2008)
Unit price at end of
27th Fiscal Period:¥413,000 (December 31, 2015)

Trading
Volume(units)
32,000

Unit

Unit price (yen) Price

Trading volume (units)(yen)
580,000
520,000

28,00024,000Offer price at additional offering: ¥449,820

460,000

20,000Offer price at additional offering: ¥394,875

400,000
340,000

16,000Offer price at additional offering: ¥272,440

12,000280,000

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

220,000

Offer price at IPO: ¥200,000

4,000

Offer price at additional offering: ¥194,610
160,000
Offer price at additional offering: ¥168,1010

100,000

Jun. 14 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 3 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 5 Feb. 4
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2002
2003
(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of December 31, 2015)
Other domestic
corporations

Foreign investors

354

270

(2.66%)(2.03%)

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.43%)

13,264190

Individuals

Foreign investors

41,070 units

197,547 units(4.70%)(22.62%)

Number ofinvestment units
by investor type

Other domestic
corporations

873,000
units

83,773 units(9.59%)

Individuals

Financial institutions(including securities firms)

550,610 units

12,450(63.07%)(93.86%)(Note) The composition ratio is rounded to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

75Introduction to the JPR Website

http://www.jpr-reit.co.jp/en/ 8955
(securities code)

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

Digest of Financial Results

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

Point 1

Point 2

Briefing Sessions and Events

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

Point 2

Point 3

Property Overview

Detailed explanations of JPR’s properties are provided,
including their features, specifications and revenues andexpenses. The access routes to respective properties from thenearest stations can be searched by smartphone. We advise
you to use this function when you wish to visit the properties.

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

Point 3

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

More than once every two years

Base Date of General Meeting of Unitholders The date designated pursuant of JPR’s Articles of Incorporation
Cash Distribution Payment Eligibility
Transfer Agent

Unitholders of record as of June 30 and December 31 of each year
Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo
Main Branch, Stock Transfer Agency Division

Location of Records

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

Mailing Address

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

Contact by Phone

0120-288-324

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Procedures for Change of Address
For filing or inquiring about a change of address, please contact your securities company with whom you have an account.
For unitholders who have not utilized Japan Securities Depository Center, Inc. before the dematerialization of stock certificates, accounts (special accounts)
have been opened at Mizuho Trust & Banking Co., Ltd., JPR’s transfer agent. For filing or inquiring about a change of address and other matters with regard
to your special account, please direct them to the contact number indicated above.
Cash Distributions
Cash distributions can be collected by bringing the “unitholder dividend receipt” to the nearest Japan Post Bank main or branch office, sub-branch office orpost office (bank agent) in Japan. If the collection period has elapsed, please make your collection by designating the collection method on the back of the“unitholder dividend receipt” and mailing it to Mizuho Trust & Banking’s Stock Transfer Agency Division. Cash distributions can also be collected at themain or branch offices of Mizuho Trust & Banking (excluding the Trust Lounge) and Mizuho Bank, Ltd.
If you wish to designate a transfer of cash distributions to a bank, etc., please contact your securities company (if you have an account with the company) or
Mizuho Trust & Banking (if a special account has been opened), as in the case of changing the address, etc. above.
(Note)	According to the provisions of JPR’s Articles of Incorporation, cash distributions will become irretrievable if they remain unclaimed for three full years from the date on which payment commenced.
We advise that cash distributions be received as soon as possible.