Security code 8955

Japan Prime Realty Investment Corporation

42nd

Japan Prime Realty Investment Corporation

Presentation Material For the Fiscal Period
Ended December 2022
(Asset Manager) Tokyo Realty Investment Management, Inc.

Table of Contents

1. Summary of Financial Results

4

2. Operational Status and Growth Strategy

7

1. Internal Strategy

11

2. External Strategy

18

3. Financial Strategy

26

4. Sustainability

28

3. Financial Results and Operating Forecasts

33

4. Appendix

41

2Overview of JPR■ Overview of JPR

Name

Securities code

Japan Prime Realty Investment
Corporation(abbreviated as JPR)
8955

Listing dateJune 14, 2002
(20 years since listing)End of fiscal
periodJune and December

Operational
standard of
portfolio(Targetinvestment
ratio)

Asset Manager

Sponsors(shareholding
ratio)(Ratio by asset class)
Office 70-90%
Urban Retail etc. 10-30%(Ratio by area)
Tokyo 80-90%
Other cities 10-20%
Tokyo Realty Investment
Management, Inc.
(abbreviated as TRIM)

Tokyo Tatemono Co., Ltd. (75%)
Yasuda Real Estate Co., Ltd. (10%)
Taisei Corporation Co., Ltd. (10%)
Meiji Yasuda Life Insurance
Company (5%)■ Characteristics of JPR(as of the end of December 2022)

1 A track record of stable management for 20 years 65
Since listing, JPR has steadily expanded its asset size while
enhancing the quality of its portfolio.

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

3 Superiority pipeline of a developer-sponsored REIT
JPR has exerted its superiority of a developer-sponsored REIT toacquire properties having excellent location characteristics
centering on large-scale development projects.

of internal growth through high level
4 Realizationof operation

Asset size
properties 488.7 bn. yen

Ratio by asset(Area) Tokyo 85.2%(Asset class) Office 81.2%

Acquisition price and ratio of
properties from sponsor pipelines

367.0 bn. yen 75.1%

Period-average Occupancy Rate
based on concluded contracts

97.0%

JPR has maintained a high portfolio occupancy rate and achieved
upward revisions of rent.

of a financial base that is stable
5 Establishment
over the long termWith a credit rating of AA- (Stable), JPR has established afinancial base centering on long-term, fixed-interest rate debts
with a focus on stability.

6 Commitment to sustainability

JPR seeks an improvement in unitholder value and contributes tothe realization of a sustainable society through the proactive
implementation of initiatives that squarely address social issues.

Credit rating

JCR AA (stable)

R&I AA- (stable)
LTV

40.0%

■ Inclusion in MSCI ESG SelectLeaders Index■ 5 Stars, the highest mark,in GRESB Real Estate
Assessment■ CDP Climate Change Program
A- (Leadership level)31. Summary of Financial Results

4

1. Summary of Financial
Results

Financial Results for the December 2022 Fiscal Period and Operating Forecasts

June 2022
Period Result(million yen)

December 2022
Period Result

Period-on-period
comparison
Increase/
Rate of
Decrease
ChangeCompared with
forecast
Increase/
Rate of
Decrease
ChangeOperating revenue

18,357

18,739

+381

+2.1%

+267

+1.4%

Rental income-realestate

9,072

9,193

+120

+1.3%

+80

+0.9%

Operating income

9,343

9,273

-70

-0.8%

-119

-1.3%

Ordinary income

8,607

8,469

-138

-1.6%

-109

-1.3%

-109

-1.3%

±0

-%

Net income

8,607

8,469

-138

-1.6%

Distribution per unit*1

7,800

7,750

-50

-0.6%

(yen)

June 2023
December 2023
Period Forecast Period Forecast

18,101

17,469-3.4%(period-on-period)-3.5%(period-on-period)

8,906

9,009

-3.1%
(period-on-period)+1.2%(period-on-period)

8,760

8,057

-5.5%
(period-on-period)-8.0%(period-on-period)

7,990

7,230

-5.7%
(period-on-period)-9.5%(period-on-period)

7,990

7,230

-5.7%
(period-on-period)-9.5%(period-on-period)

7,600

7,600

-1.9%

-%
(period-on-period)(period-on-period)*1. Distribution per unit is calculated after adding or subtracting provision or reversal of reserve for reduction entry from each period's income.
Jun. ’22 period

Dec. '22 Period

Jun. '23 Period(Forecast)

Dec. ’23 period(Forecast)

Provision of reserve
for reduction entry

830

815

411

-

Reversal of reserve
for reduction entry

-

73

-

348

(million yen)5

1. Summary of Financial
Results

Fluctuation in Distribution per Unit

Although it took time to find tenants for certain properties, rental revenue remained stable.
The impact of rising energy prices started to improve thanks to a review of the arrangement for charging tenants.
EPU(excluding temporary factors) returned to the recovery path after hitting bottom in the June 2023
period.
Plus item

Minus item

(yen/unit)

Increase in rent and common charge(rent revision etc.)+46
Decrease in rent and common charge(move-in/ move-out)-10

Increase in rent and common
charge (rent revision etc.)
Increase in rent and common
charge (move-in/ move-out)
Retainedearnings,
etc.

DPU

830

7,800

Gain (loss)
on transfer
of property

DPU

7,750

1,139

Adjusted
EPU

7,400

Cancellation
penalty, etc.
Rents andcommonUtilities
chargeexpenses

212

36

Adjusted
EPU

141

78

7,441
12

Transfer ofproperty Others

Umeda Loft -78

Rents andcommoncharge35+9Total property to beacquired
Shinjuku Center
Osaka Dojima Bldg.
Tenjin Nishidori
Sola City

+176
+51
+41
+46
+39

Total property to betransferred
Umeda Loft
Gotanda First
Crest Takebashi

-158
-72
-54
-31

182

Adjusted
EPU

85

Asset

1.
2.
3.

7,170

89replacement 31
19

DPU

DPU

7,600

Retained
Gain on earnings,
transfer of etc.
property

884

Fixed
property tax

Dec. '22 period

454

Cancellation
penalty, etc.

Utilities
expenses

2022.6

Increase in rent and common charge(rent revision etc.)+7
Increase in rent and common charge(move-in/ move-out)
+95

+27

7,600

Sola City+59
Crest Takebashi -34

Use ofinternal
reserves
Utilities
expenses
Rents andcommonAssetchargereplacement

82

103

25

Adjusted
EPU

350

130 7,250

OthersOthersJun. ’23 period (forecast)

Dec. ’23 period (forecast)

Fluctuations in distribution per unit are shown as amounts calculated by dividing the amounts of changes in each fiscal period by the number of investment units outstanding as of the end of the fiscal
period preceding each such period.
"Adjusted EPU" is net income per unit before recording of gain (loss) on sale of real estate, etc.
"Gain (loss) on transfer of property" for the Dec. '22 period is calculated after deducting a loss on exchange of real estate, etc. of 210 million yen.

6

2. Operational Status and Growth Strategy

7

2. Operational Status
and Growth Strategy

Growth Strategy

Aim for sustainable improvement in unitholder value through the continuous external growth, effective asset
replacement, and the strategic utilization of gain on transfer and retained earnings

Unitholder
value

Expand scale/Improve
quality of portfolio throughsponsor pipeline

Growthdrivers

Stabilize distributions
through capitalization of gain
on transfer and utilization ofretained earnings

Properties acquired using
sponsor pipelines*1

Pace of expansion in asset size

Retained earnings*1✓ Total acquisition price:375.2 bn. yen✓ 2016-2019: 29.2 bn. yen✓ Total: 4.5 bn. yen✓ 2020-: 57.5 bn. yen✓ 4,542 yen per unit

High level of operational
capability throughcollaboration with Tokyo
Tatemono, which is the mainsponsorCommitment to sustainability→75.5% of total portfolio

Operationalframework

Achieve continuous external
growth utilizing low LTV

Diversified robust portfolio
focused on favorably locatedoffice properties in Tokyo*1. Amounts and percentages indicated under "Properties acquired using sponsor pipelines" and "Retained earnings" are estimates as of the end of the Jun. '23 period.

8

2. Operational Status
and Growth Strategy

DPU Strategy

The immediate adjusted EPU target of 7,600 yen will be maintained but factors such as rising energy prices are
expected to delay the timing of its achievement slightly.
Aim for early achievement while seeking to maintain stable distributions by utilizing retained earnings.
Change in Distribution per Unit and Medium-term Target
Adjusted EPU*1

Gain on transfer, etc.*2(yen/unit)

Use of internal reserves

Gain on transfer, etc.
through asset
replacement

Maintain stable distributions
through utilization of internal reserves

Medium-term
TargetImmediate target
Minimum
distribution
7,600

Retained earnings
per unit (yen)

7,800

7,750

7,400

7,441

7,600
7,170

'22.6

'22.12

3,386

4,129

'23.6

7,800

7,600

7,600
7,250

成長ドライバーGrowthdrivers

Growth drivers

稼働回復ofRecovery+occupancy
外部成長+
External
growthContinuous
external growth（Forecast）（Forecast）'23.12

'24.6

'25.6

'25.12'26.6(period)'27.12

4,542

4,193

←Ample level of retained earnings relative to other J-REITs*1. "Adjusted EPU" is net income per unit before recording of gain on sale of real estate, etc.
*2. "Gain on transfer, etc." is gain (loss) on sale of real estate, etc. less the impact of property transfer on general management expenses and retained earnings.

9

2. Operational Status
and Growth Strategy

Operational Status Summary
ResultOccupancy rate

Internal
GrowthStrategy

Ratio ofincrease/decreas
e on rent
revision
Rate of tenant
replacement

Dec. ’22 period

Period-on-period
comparison

97.0%-0.8pt+0.2%-0.6pt-2.4%-0.7ptBusiness environment perception

Future initiatives• In the office market, the vacancy rate shows atendency to remain mostly flat, partly due to acertain degree of recovery in demand.
• Meanwhile, office buildings are increasingly
selected based on location/spec.

• Implement flexible leasing activities based on
accurate understanding of changes in themarket environment and tenant needs.
• Continue to monitor impact of increase in officesupply centered on central Tokyo and energy
price trend.

• The property sales market remains overheated,and opportunities to acquire properties on the
open market are limited.
• Tokyo Tatemono, which is the main sponsor,
will pursue "expansion of property sales toinvestors" and "expansion of AUM of affiliated
REITs, etc."• Acquire well-located properties in major
regional cities in addition to office buildings inTokyo, taking full advantage of the sponsor
pipeline.
• Enhance the quality of the portfolio throughstrategical asset replacement.
• Consider acquisitions of urban commercial realestate (including hotels) based on carefulassessment of the situation of individual
properties and other factors.

• Domestic interest rates are in an upward trend
under the impact of monetary tightening on
Europe and the United States and the BOJ's
yield curve control change.
• The pace of monetary tightening in Europe andthe United States has slowed.

• Conservatively control LTV• Exercise debt management based onawareness of financial soundness and financial
costs.
• Use medium maturities, taking thediversification of repayment dates into
consideration.

• The importance of efforts to address
sustainability issues in Japan and overseas,
including climate change risks and humancapital, will continue to increase.

• Make steady progress on 2030 strategy targets
and material issues through cooperation with
relevant parties both inside and outside thecompany.
• Implement strategies to reduce GHG emissions
which take energy costs and other factors into
consideration.

• Review rates tenants are charged, taking rising
electricity prices into consideration.

External
GrowthStrategy

Dec. ’22 period

Period-on-period
comparison

Asset size

488.7 bn. yen-3.5 bn.
yen

Number of
Properties65-2 property• Implement asset replacement with sponsor andachieve enhancement of portfolio quality.
• Conduct the third part of the sale of JPR Umeda
Loft Bldg., and achieve capitalization of gains
on transfer and expansion of retained earnings.

Dec. ’22 period

Financial
Strategy

LTV

40.0%

±0.0ptAverage debt cost

0.76%

+0.02pt

Average maturity

4.7 years-0.3 years

CDP Climate Change Program

Sustainability

Period-on-period
comparison

A- (upgrade)• Established GHG emission reduction targets andplan aiming to reach net zero by 2050.
• Submitted targets to SBTi in November 2022.

10

2-1. Internal Strategy

Features of Portfolio (as of December 31, 2022)

JPR has built a robust portfolio diversified in terms of area, grade, asset class and rent zone, with a focus on
excellently located office buildings in Tokyo.
Ratio by grade/asset class(all properties, ratio of acquisition price)
S Class

Retail properties

Ratio by area(all properties, ratio of acquisition price)
Other cities

6.1%

18.8%

Chuo Ward

14.8%

12.1%

A Class

14.1%

Office properties in
Other Cities

12.1%

B Class

19.5%
C Class
Greater Tokyo 10.5%
outside Tokyo’s
7.4% 11.5%
23 wards
Land with leaseholdinterest

Chiyoda Ward

Great Tokyo
outside Tokyo’s
23 wards

15.7%

18.5%

4.3%

12.5%
Tokyo’s
18 wards

Minato Ward

11.7%
10.4%

Shinjuku Ward

Shibuya Ward

Tokyo’s 23 wards

Diversification of grade and asset class

Well-balance regional diversification
with focus on Tokyo

Ratio by Rent Zone
(office properties, ratio of acquisition price)

Ratio by number of minutes walk from nearest
station (all properties, ratio of acquisition price)

Less than
15 thousand yen

30 thousand
yen or more

9.1%
15 to less than 20
thousand yen

16.4%
25 to less than 30
thousand yen

25.4%

13.9%

9.7%

Within3-5 minutes

Directly linked

16.4%

16.6%
Within
1 minute
Within
1-3 minutes

20 to less than 25
thousand yen

35.2%

Within5-10 minutes

74.5%

Focus on office buildings in rent zone 15 toless than 20 thousand yen per tsubo, which
are in highest demand

29.6%

27.6%
73.7%
Over 70% of properties are located within a
3-minute walk of the nearest station

1. Ratio by Rent Zone (office properties, ratio of acquisition price) figures do not include Grand Front Osaka.

112-1. Internal Strategy

Diversification of Portfolio

Build a stable portfolio with good investment ratio diversification.
Through tenant replacement, the number of office tenants with occupancy of 1.0% or more was reduced toonly one.
Tenant diversification (based on end users by property;
as percentage of area)

Investment ratio diversification
12.0%

1.6％ on average

End of Dec. ’19 period
OfficeLess than 1.0%
Office Tenants
60.7%

Land with leasehold interest
Retail properties

Retail properties
Sponsors, etc. with 1.0% or more
1.0% or more Office Tenants

10.0%

Portfolio mostly consists ofproperties in which investment
ratio is 3.0% or less

NOI yield

8.0%

Yakuin Business
Garden

A company

1.3%

Rise Arena Bldg.

B company

1.3%

Olinas Tower

C company

1.1%

JPR Nagoya
Fushimi Bldg.

D company

1.0%

Total

6.0%
Olinas Tower

4.8％ on average
4.0%

Shinjuku Center Bldg.

↑
JPR owns the land with leasehold interest,
and revenue is extremely stable.

2.0%

Reduced tenantconcentration risk
through replacement ofoffice tenants

End of Dec. ’22 periodLess than 1.0%
Office Tenants
68.5%

The Otemachi Tower(Land with leasehold interest)

4.6%

Retail properties
Sponsors, etc. with 1.0% or more

1.0% or more Office Tenants
0.0%
0.0%

2.0% 3.0% 4.0%

6.0%

Investment ratio

8.0%

10.0%

JPR Nagoya
Fushimi Bldg.
Total

C company

1.0%
1.0%

1. NOI yield is based on book value.

122-1. Internal Strategy

Occupancy Status

Continue to maintain high occupancy relative to the market.
Aim to improve occupancy through flexible leasing activities that meet market needs.
Occupancy rate

Major Move-Ins/Move-Outs■’23.6■’22.12

Occupancy rate based on concluded contracts

98.9%'19.12

99.5%

'20.6

99.4%
99.1%

'20.12

98.2%

97.4%

'21.6

95.8%

'21.12

97.8%

95.1%

'22.6

97.0%

95.5%

'22.12

97.3%

947

Shinjuku Square Tower-1,484870

Kanematsu Bldg.

-1,222821

JPR Yokohama Bldg.

-1,052 -169

169

Tokyo Tatemono Higashi-Shibuya Bldg.

-169

96.2%

'23.6 (period)

1,592
300

JPR Omiya Bldg.

(Forecast)(m2)-1,046 -711

Olinas Tower

96.9%

Move-ins-2,254 -394

JPR Harajuku Bldg.

99.6%■’23.6 (period)

Move-outs

Occupancy rate based on generated rents

99.5%■’22.12*
Gotanda First Bldg.

1,747-4,234* Gotanda First Bldg. was sold on December 22, 2022.

Status of move-ins and move-outs

Comparison with market occupancy rate
Occupancy rate based on concluded contracts
Occupancy rate of business districts in Tokyo

Move-in spaces

Occupancy rate

Move-out spaces

Move-out rate

（㎡）

99.5%

98.4%

99.6%

98.4%

20,000
99.4%

98.2%

96.9%

97.8%

97.0%

97.3%

10,000

'20.6

0.8

2.6

6
1.6

1.0

1.3

0
96.3%

94.5%

93.6%

93.6%

-10,000

93.6%-20,000'19.12

4.2
2.5

2.7

'20.12'21.6'21.12'22.6'22.12'23.6 (period)

3
0

-1.7

-0.7

-1.3
-3.8

'19.12(Forecast)'20.6'20.12'21.6-2.9'21.12

-3.9

-2.5

'22.6

'22.12

-1.9

-3

-6
'23.6 (period)(Forecast)

1. Only figures for occupancy rate based on concluded contracts include Grand Front Osaka.
2. Occupancy rate of business districts: Averaging figures published by Miki Shoji Co., Ltd in each month that belongs to the JPR’s relevant fiscal period.

13

2-1. Internal Strategy

Status of Rent

Seek to maintain and raise rent levels by increasing the competitiveness of properties through appropriate
improvements
Ratio of Increase/Decrease on Rent Revision/
Tenant Replacement (% of Total Contracts)

Monthly Rent Revision Increase/ Decease
Upward revision(tenant replacement)

Upward revision(existing tenant)(million yen)

40

■ Rent revision

Downward revision(existing tenant andtenant replacement)(period)

3.6
20

12.9

29.2

13.4

0

6.6
3.6
7.6

-2.6

-20

-6.1

Of which,
reduction of large
tenants -34.6-40'19.12

16.1

'20.6

2.9

3.7

6.7

4.3
-6.1

-6.8

2.4

1.3
1.7
-3.6

Upward revision
Decrease in rent

-5.1

■ Tenant replacement

No change

Upward revision

No change

Decrease in rent

'20.12

32.9

65.7

1.4

'21.6

26.6

72.1

1.2

63.0

14.8

22.2

67.6

10.8

21.6

'21.12

17.9

80.2

1.9

39.6

16.7

43.8

'22.6

15.8

82.6

1.6

45.8

8.5

45.8

'22.12 12.1

85.5

2.4

-35.8

'20.12'21.6'21.12'22.6'22.12'23.6 (period)

32.4

17.6

50.0

(Forecast)0

100 (%) 0

50

100 (%)

Status of gap in rent
(Office/By fiscal period of rent renewal）

Average free rent period(month)(million yen)+60

6Lower than market rent

Higher than market range (new contract, etc.)

Within market range

Higher than market range (except for new contract)+40

4Rent gap

+20

2
0

50

0.8

1.0

1.2

'19.12'20.6'20.12

2.4
'21.6

3.7

'21.12

3.5

'22.6

2.7
'22.12 (period)+1.4%(period-on period
comparison +1.9pt)

+0
-20
'23.6

'23.12'24.6'24.12 (period)

1. Rent gap figure is only figure including Grand Front Osaka.
2. Forecast of monthly rent increase/decrease (forecast increase) for Jun. ’23 period is sum total of upward or downward revisions and increases or decreases in rent upon tenant replacement.

14

2-1. Internal Strategy

Leasing Status of Properties Requiring Priority Action

Properties for which leasing activities are being stepped up
Olinas Tower

Greater Tokyo

OfficeShinjuku Square Tower

Central TokyoJPR Harajuku Bldg.

OfficeOfficeCentral Tokyo

Target Area

1,063 tsubo

Target Area

691 tsubo

Target Area

514 tsubo(Ratio in portfolio)(0.7%)(Ratio in portfolio)(0.5%)(Ratio in portfolio)(0.3%)- This integrated office, retail, andresidential development is alandmark building in the
Kinshicho area.
- Stress that the property is thebest in the area in terms of sizeand high-grade feel.
- Seek to fill the vacant spacequickly by getting a good graspof trends in the area andimplementing flexible leasing
activities, including settingcompetitive asking conditions
and subdividing floors.

Mar. '22

77.9%

Jun. '22

92.5%- Multi-purpose redevelopment
project situated among theskyscrapers clustered in NishiShinjuku- A large tenant (JPR’s ownershipinterest: 818 tsubo) was moving
out in stages until August last year.
- Renovate common areas tostrengthen the building’s
competitiveness.
- Aim to fill the vacant space quickly
by stressing the competitive level ofthe rent within the area in addition
to the property size and grade feel.

Oct. '22

Mar. '23

86.9%

85.2%

- Office building with high visibility
situated on Meiji-Dori Avenue.
- Although multiple tenants (5 floors,
801 tsubo) will move out by April
this year, 2 floors have been
completely filled without downtime.
- Renovate common areas tostrengthen the building’s
competitiveness.
- Seek to fill the vacant space quickly
by capturing robust office demandin the area.

Nov. '22

Jun. '23

Oct. '22

Mar. '23

Apr. '23

91.4%

88.1%

100%

44.4%

64.3%

Properties for which leasing activities progressed■ Changes in operating ratio

1. For buildings co-owned with other rights holders, the area equivalent to JPR’s ownership interest is shown.

’22.12

’23.2

’23.5

2

’22.4

2

41.7%

2

96.5%

2

80.2%

2

65.0%

2

41.7%

Subdivision of seventhand eighth floors

2May. '23

Renovation ofcommon-use spaces

2Feb. '23

65.0%

2Jun. '22

100%

70.6%

Acquisition of ZEB
Oriented certification

2

Apr. '22

96.5%

80.2%

Move-out ofmajor tenant2- Although a large tenant (5 floors, 1,211 tsubo) moved out in April lastyear, 2 floors were completely filled without downtime.
- Renovate common areas to strengthen the building’s competitiveness.
Also get a good grasp of trends in the area and implement a flexible
leasing strategy including subdividing floors.
- Seven tenants moved in as a result of the leasing activities. Reduce risk
in future by turning into a multi-tenant building.
- Acquired ZEB Oriented certification in September last year. This helped
to fill vacant space, with some tenants pointing to this as their reason
for moving in.

2(0.7%)

2

1,104 tsubo

2Target Area
(Ratio in portfolio)

A flexible leasing strategy based on anunderstanding of trends in the area paid off.

100%

2

Office2

JPR Omiya Bldg. Greater Tokyo（year/month）

15

Status of Utilities Expense (Electricity Bills)

2-1. Internal Strategy

The electricity bill balance worsened significantly due to rising energy prices but is now starting to improve
thanks to a review of the arrangement for charging tenants.
Initiatives to improve balance

Changes in electricity bills*1
1,400（million）

Revenue

Expenses

1,200

Balance（figures in parentheses represent balance per unit）

1,125

1,019

1,000
800
600
400

569

623

-54
（-55 yen）

601

711

825

757

1,173

910

As of June 30, 2022
-111
-262
（-111 yen） （-263 yen）

3.0%
Tenant directcontracts

2021.122022.6

Fixedunit price

-300
-262
（-301 yen） （-263 yen）

02022.122023.6（Forecast）

2023.12 （period）（Forecast）

Components of electricity bill and changes in composition（million）

1,000

Arrangements for charging tenants*2*3

As of December 31, 2022

200

1,200

Reviewed arrangement for charging tenants and those previously
charged based on a fixed unit price are now charged using a unit
price arrangement that partially reflects cost fluctuations. (fueladjustment cost, renewable energy levy, etc.)

Renewable Energy Power Promotion Surcharge
Fuel Adjustment Charge
Basic Fee + Energy-Used Charge

30.5%

Fixed
unit price
39.7%

Passthrough
12.6%
17.1%

Tenant directcontracts

29.7%
Passthrough12.4%

Combination of
fixed unit priceand variable
unit price

54.9%

Combination of fixedunit price andvariable unit price

800
600

Ratio of fixed unit price dropped to 3%.
The impact of fluctuations in fuel adjustment
charge, etc. has become limited.

400
200
0
-200

2021.122022.62022.122023.6（Forecast）

2023.12 （period）（Forecast）

1. Amount corresponding to electricity bill which is included in “Incidental income” and/or “Utilities expense.”

2. The ratio of each unit price arrangement in the portfolio is calculated based on leased area.
3. “Tenant direct contract” includes land with leasehold interest.

16

2-1. Internal Strategy

Retail Property

Maintain high occupancy, with long-term fixed rent as the basic format.
Sales also show tendency for recovery as economy returns to normal.

Changes in sales at main retail properties(compared with same month in 2019)

Average occupancy rate (Retail properties)

125.0%

100.0

（%）

100.0

99.3

99.9

99.5

99.7

100.0%

100.0
75.0%
FUNDES Ueno

50.0%

90.0

FUNDES Suidoubashi

25.0%

Kawasaki Dice Bldg.

0.0%

80.0

'20.6

'20.12'21.6'21.12'22.6'22.12 (period)

Status of lease contract (Retail properties, Space ratio)
Tenant sectors

2020.62020.122021.62021.122022.62022.12*1. Stores that are continuously open during the target period are counted.

2023.1（year/month）

Main retail properties

Type of rent

Services

2.3%

4.8%
3.6%

3.0%
Bars &
restaurants

Urban type

Fixed rent andcommission

Other

Commission

0.7%

Retail91.0%

Fixed rent

94.5%

Type of rent

Less than 2 years

16.0%

6.7%

13.5%

84.0%
Ordinarybuilding lease

2 years or more andless than 3 years

5 years
or more26.4%

3 years or more andless than 5 years

53.4%

JPR Chayamachi
Bldg.

JPR Ginza NamikiYurakucho Ekimae
dori Building
Bldg. (Yurakucho Itocia)

FUNDES Ueno

Station-front
type

Fixed term
building lease

JPR Shibuya
Tower Records Bldg.

Remaining contract period

Kawasaki DICE Bldg.

Tanashi ASTA

JPR Musashikosugi
Bldg.

Housing Design Center
Kobe

17

Asset Replacement Initiatives

2-2. External Strategy

Taking advantage of multiple sponsor pipelines, replaced properties that have issues in securing stable earnings
due to declining occupancy rates, etc., with properties that can be expected to have a high competitive
advantage over the medium to long term.
Effect of asset replacement
Overview of asset replacement
Acquired assets
Shinjuku Center Bldg.
(Additional ownership)
Sponsorpipeline

Osaka Dojima
Bldg.
Sponsorpipeline■ Achieved expansion in size of assets
FUNDES Tenjin
NishiDori

Ochanomizu
Sola City
Sponsorpipeline

Sponsorpipeline

Acquisition price3.32 billion yen

2.46 billion yen

3.31 billion yen

6.49 billion yen

NOI (annual basis)

110 million yen

120 million yen

125 million yen

214 million yen

NOI after depreciation(annual basis)

90 million yen

106 million yen

109 million yen

173 million yen

Occupancy rate

94.8%

83.6%

68.8%

100.0%

SellerTokyo TatemonoTokyo TatemonoTokyo Tatemono

Yasuda Real
Estate(Planned)
Acquisition date

December 22, 2022

January 11, 2023

January 11, 2023

April 12, 2023

Exchangetransaction

Assetreplacement

Sponsors
Building age
33 years

Expansion in size of assets

Improvement of profitability+8.66 billion yen+244 million yen/year

Rejuvenation of portfolio

Capitalization of gain onsale/Retention of retained earnings-10.0 years+844 yen/unit(Assets transferred vs assets
acquired)（of which, 450 yen/unit isappropriated for distributions）

NOI after depreciation*1

Gain on transfer＊１ Based on profit under normal operations of each property acquired (transferred
according to appraisal report.

Assets transferred
Gotanda First Bldg.

and improvement of profitability under normal operations

JPR Crest Takebashi Bldg.
Sponsors
Building age
23 years

Transfer price4.27 billion yen

4.16 billion yen(Planned)
Gain on transfer
Difference fromexchange of propertie

1.3 billion yen(Use in compressed entry)

0.8 billion yen

0.95 billion yenーOccupancy rate

0.2％

89.2％

Transferee

Tokyo Tatemono

Yasuda Real Estate(Planned)
Transfer date

December 22, 2022

April 12, 2023

Exchange Transaction and Compressed Entry■ Make a compressed entry to reduce the book value of the land of Shinjuku
Center Bldg., using a gain on the sale of land of Gotanda First Bldg.
Existing
part

Additional
Ownership(aftercompression)

Total

Book Value

22,236
million yen

1,782
million yen

24,019millionyen

NOI yield

3.2%

6.2%

3.4%

NOI yield after
depreciation

2.5%

5.1%

2.7%

*The figures in the table above are estimated values at the time of execution of the exchange transaction agreement. In
addition, the book value of the additional acquisition (after compression) is the price before reflecting acquisition expenses, etc.

18

2-2. External Strategy

Summary of Newly Acquired Property

Shinjuku Center Bldg. (Additional Ownership)

Central Tokyo

OfficeSponsors

Additional acquisition of a highly competitive office building in the area having a concentration of high-risebuildings on the west side of Shinjuku station from Tokyo Tatemono, the main sponsor
Acquisition Highlights◼ The property is conveniently located. It is directly connected by an underground passage to JR
Shinjuku Station. It is two-minute walk from Toei Subway Oedo Line "Tocho-mae" Station.
◼ Appropriate maintenance and management such as equipment renewal and renewal of common
areas, and reduction of environmental impact by adopting LED lighting in 2009, we carried out
the world's first long-period earthquake motion countermeasure work on an existing
skyscraper.Various long-life initiatives aimed at 100-year construction are highly evaluated.
◼ JPR owns a part of the site and has a 40.0% co-ownership interest in the portion of the building
it co-owns (21.5% of the entire building). After the additional acquisition, JPR will own a part ofthe site and have a 47.0% co-ownership interest in the portion of the building it co-owns.

Market Environment in Shijuku Area
Acquisition date

December 22, 2022

Acquisition price

3,320 million yen

Appraisal value

3,320 million yen

Total rentable area
/floors

1,551.45㎡/54F

Type of Ownershipbuilding age

(%)

100.0

Ownership of a part ofthe site and sectional
ownership (21.5% of theentire building) (coownership interest of
7.0%)

43years

NOI yield(after compression)

3.3% (6.2%)

After-depreciation yield(after compression)

2.7% (5.1%)

Occupancy rate (as ofDecember 31,2022)

94.8%

Seller■ The vacancy rate in the Shinjuku area has remained lower than that in thebusiness districts in Tokyo.

99.0
98.0

新宿エリア・東京ビジネス地区・本物件の稼働率推移*１
東京ビジネス地区

新宿エリア

本物件
←actualresultsprospect→

97.0
96.0
95.0
94.0

Tokyo Tatemono Co.,
Ltd.

93.0
92.0
2022/1 2022/2 2022/3 2022/4 2022/5 2022/6 2022/7 2022/8 2022/9 2022/10 2022/11 2022/12 2023/1 2023/2*1. Prepared by TRIM based on materials published by Miki Shoji Co., Ltd.

19

2-2. External Strategy

Summary of Newly Acquired Property

Osaka Dojima Bldg.

Other Cities

OfficeSponsors

Acquire an office building in a prime area, Dojima area in Osaka, from Tokyo Tatemono, the main sponsor.

Acquisition Highlights◼ This property has good access to public transportation. It is a five-minute walk from Nishiumeda
station on the Osaka Metro Yotsubashi Line and a nine-minute walk from the JR Osaka station.
◼ The standard floor has a regular shape and an area of approximately 155 tsubo. Tenants canuse the space efficiently and design layouts flexibly.
◼ The property has drive-in parking in the basement. The building has a high-grade appearance.
JPR rates the property as one from which it can expect stable revenue over the medium to longterm.

Map of Surrounding Area

Acquisition date

January 11, 2023

Acquisition price

2,460 million yen

Appraisal value

2,700 million yen

Total rentable area
/ floors

Type of Ownership

3,074.30㎡/7F
Land: Ownership (coownership: co-ownershipinterest 95.4%)
Building: Sectional
ownershipbuilding age

26years

NOI yield

4.9%

After-depreciation yield

4.3%

Occupancy rate

83.6%

■ The surrounding area is expected
to develop further due to ONE
DOJIMA PROJECT, a large
redevelopment project of Tokyo
Tatemono.

Market Environment
in Dojima Area
■ The office market in the Dojima area
has been remaining stable.
Vacancy rates in Dojima, Nakanoshima area
and in Osaka*1
12.0%

Vacancy rate in Dojima,
Nakanoshima area

10.0%

Vacancy rate in Osaka

8.0%

6.0%

4.0%

2.0%

SellerTokyo Tatemono Co., Ltd.

2022Q22021

2022Q1

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

0.0%

*1. Prepared by TRIM based on materials published by
CBRE K.K.

20

2-2. External Strategy

Summary of Newly Acquired Property

FUNDES Tenjin Nishidori

Other Cities

RetailSponsors

Acquire a new urban compact retail facility that Tokyo Tatemono, the main sponsor, has developed.
Acquisition Highlights◼ It faces Tenjin Nishidori street in Fukuoka Tenjin, which has the largest concentration of retailfacilities in Kyushu, and is conveniently located in terms of public transportation. It is a fiveminute walk from Nishitetsu Fukuoka (Tenjin) station on the Nishitetsu Tenjin-Omuta Line.
◼ The property has high visibility, located on a corner lot. The area has only a small number ofrelatively new retail facilities. Thus, the property is highly competitive.
◼ On the first floor is an Aesop store. Aesop is a cosmetics brand that attract people of a wide
range of ages. On the second floor and above are clinics and tenants that provide services thatare less susceptible to the impact of the COVID-19 pandemic. For these reasons, JPR rates theproperty as one from which it can expect stable revenue over the medium to long term.

Map of Surrounding Area
■ Tenjin Nishidori is a prime areathat has a concentration of
popular retail facilities.
Acquisition date

January 11, 2023

Acquisition price

3,310 million yen

Appraisal value

3,590 million yen

Market Environment inFukuoka Tenjin Area
■ Commercial needs are expected toincrease in the Fukuoka Tenjin area as
the Tenjin Big Bang project is being
implemented.
Numerical targets inTenjin Big Bang project✓ Aiming to rebuild 30 buildings in ten
years leading up to 2024 to create newspace and jobs

Total rentable area
/floors

1,054.30㎡/8F

Type of Ownership

Land: Ownership
Building: Ownership✓ Gross floor area: approximately 1.7-foldnewly built✓ Number of employees: approx. 2.4-foldbuilding age
NOI yield

3.8%

After-depreciation yield

3.3%

Occupancy rate

68.8%

Seller✓ Economic effect: 850.0 billion yen per
year

Tokyo Tatemono Co., Ltd.

21

2-2. External Strategy

Summary of Newly Acquired Property

Ochanomizu Sola City

Central Tokyo

OfficeSponsors

Acquired large-scale multi-purpose building, which is directly connected to Tokyo Metro Shin-ochanomizu Station and aone-minute walk from JR Ochanomizu Station, from Yasuda Real Estate, which is a sponsor.

Acquisition Highlights◼ Large-scale multi-purpose building completed in 2013. Can cater for various business needs.
Ochanomizu Sola City, with a service area including a square surrounded by restaurants andshops on B1, conference rooms on the 1st and 2nd floors, university and education-related
facilities on the 3rd to 5th floors, and the 6th floor and higher designed for offices.
◼ Floors are large regularly shaped spaces without pillars with a standard floor area ofapproximately 900 tsubo and can be efficiently and freely configured according to tenantrequirements.
◼ Built with a seismically isolated structure and has emergency power generators capable ofproviding emergency power for approximately 72 hours. Has a high environmental
performance, adopting environmentally friendly technologies with the installation of a solar
power generation system and utilization of spring water from subways.

Market environment in area surrounding Ochanomizu■ The occupancy rate in the Ochanomizu area has been relatively low in recent years,
including during and since the COVID crisis.
Planned acquisition date

April 12, 2023

Planned acquisition price

6,490 million yen

Appraisal value

7,170 million yen

Completion of the property
7.0%

Vacancy rate in Tokyo's Central 5 wards

6.0%

Total rentable area/
Number of floors

2,235.01 m2/23 floors
above ground5.0%

Ownership (quasi-coownership interest (3.4%)of trust beneficial interest)

4.0%

Type of ownership
Building age

Vacancy rate in Kanda/Iidabashi area

3.0%

10 years
2.0%

NOI yield

3.3%

After-depreciation yield

2.7%

Occupancy rate

100.0%

Seller

1.0%

0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022Q1 2022Q2 2022Q3

Yasuda Real Estate Co., Ltd.

* Prepared by TRIM based on materials published by CBRE K.K.

22

2-2. External Strategy

Continuous implementation of asset replacement strategy

Achieve realization of unrealized gains and improvement in portfolio quality through asset replacement withsponsor
2017

2020

2019

Property to beacquiredTokyo Square
GardenJPR Kojimachi
Bldg.

FUNDES
Ueno

Sponsorpipeline

Sponsorpipeline

18.4 billion yen

5.75 billion yen 3.8 billion yen

Sponsorpipeline

2021

JPR Shinsaibashi
West

Sencity Bldg.

Sponsorpipeline

Sponsorpipeline

3.75 billion yen

13.87 billion yen

Sponsorpipeline

11.4 billion yen

7.3 billion yen

Assets transferredAssetreplacement

Asset
replacement

Tokyo Tatemono Kyobashi Bldg.

JPR Hakata Bldg.

Sponsors

Rise Arena Bldg.
(Additional
Grand Front Osakaownership)
SponsorPreferential
negotiation right pipeline

Otemachi Financial
City North Tower

Tokyo Tatemono
Honmachi Bldg.

Building age
35 years

24.5%
Properties
acquired basedon information
provided bysponsors
92.5 billion yen

56.9%
18.6%

Properties
acquired using
sponsor pipelines

75.5%

FUNDES Tenjin
Nishi Dori

Ochanomizu
Sola City

Sponsorpipeline

Sponsorpipeline

Sponsorpipeline

Sponsorpipeline

11.3 billion yen

3.32 billion yen 2.46 billion yen 3.31 billion yen

6.49 billion yen

Assetreplacement

Asset
replacement

Gotanda First Bldg.

JPR Crest
Takebashi Bldg.

Sponsors

Sponsors

Building age
33 years

Building age
23 years

JPR Umeda Loft Bldg.

Building age
51 years

Osaka
DojimaBldg.

Building age
31 yearsSponsorpipeline

Trends in retained earnings balance and Policy(Top 5 portfolio properties)(Breakdown of owned properties by seller)
Properties
acquisition fromsponsors
282.6 billion yen

Shinjuku Center
Bldg. (Additional
ownership)

Sponsors

Utilization of sponsor pipelines

Properties acquired otherthan from sponsors
121.7 billion yen

21.3 billion yen

Tokyo Tatemono
Higashi-Shibuya
Bldg.

Asset
replacement

Sponsors

Building age 38 years

2023

2022

Property Name

billion yen

1

The Otemachi Tower (landwith Leasehold Interest)

36.0

2

Olinas Tower

31.3

3

Shinjuku Center Bldg.

24.3

4

Grand Front Osaka

21.3

5

Tokyo Square Garden

18.4

All are sponsor pipeline properties orsponsor development properties

1. JPR makes decision based on circumstances at the time of acquisition.
2. Amounts and percentages in (Breakdown of owned properties by seller) are estimates as of the end of the Jun. '23 period.

◼

Expanded retained earnings through strategical asset replacement（Trends in retained earnings balance）（billion yen）

Steady expansion

4.1

Policy on utilization ofretained earnings

4.5

3.4

⚫

The policy is to use it tomaintain stable distributions
until “the immediate EPU
target” is achieved⚫

Preparing for unexpected
events such as disasters andproperty transfer losses,
reserve a certain amount

2.5
1.9
0.7

'20.6

1.1

'20.12'21.6'21.12'22.6'22.12'23.6 (period)(forecast)
（予想）

23

2-2. External Strategy

Acceleration of pace of property acquisitions utilizing sponsor pipeline

The pace of expansion in JPR's asset size accelerated, partly due to the Medium-Term Business Plan of Tokyo
Tatemono, which is the main sponsor.
Tokyo
TatemonoCo., Ltd.

2015-2019
Tokyo Tatemono's previous Medium-Term Business Plan

2020-2024
Tokyo Tatemono's current Medium-Term Business Plan

Further expansion of Group AUM and profit opportunities

Key Strategies (excerpt)
Expand property sales toinvestors

Total investment amount 115.0 billion yen (as of the end of
December 2022)*1

Strengthen fund business

AUM, including affiliated REITs, of 1.5 trillion yen (forecast of ‘24)

Changes in asset size
Growth from 2020: 57.5 billion yen(100 million yen)(Acquisition: 84.5 billion yen Sale: 26.9 billion yen)

5,500

2016-2019
Growth between 2016 and 2019:29.2 billion yen(Acquisition: 41.4 billion yen Sale: 12.2 billion yen)

5,000

4,848
4,675

4,656

Dec. '20
PeriodJun. '21
Period

4,571

JPR

4,500

4,350

4,350

4,350

4,350

Jun. '17
PeriodDec. '17
PeriodJun. '18
PeriodDec. '18
Period

4,395

4,395

Jun. '19
PeriodDec. '19
Period

4,922

4,887

4,970

4,214
4,103

4,103

Dec. '15
PeriodJun. '16
Period

4,000

3,500

Dec. '16
PeriodJan. '17
PublicOffering

Jun. '20
PeriodFeb. '20
PublicOffering

Dec. '21
PeriodJun. '22
PeriodJan. '22
PublicOffering

Dec. '22
PeriodJun. '23
Period(Forecast)*1. Balance of real estate for sale except for logistics properties in commercial properties business of Tokyo Tatemono Co., Ltd. (Total investment amount)24

Sponsor Pipeline

2-2. External Strategy

Actively take advantage of sponsor pipeline to expand acquisition opportunities
Properties owned by Tokyo Tatemono Co., Ltd. and JPR in
the vicinity of Tokyo Station

Tokyo Tatemono's pipeline
Real estate for long-term ownership reclassified as real estate for sale
■ Properties reclassified as real estate for sale
Between the end of December 2018 and the end of December 2021:
Approx. 54.0 billion yen■ Properties acquired by JPR
JPR Kojimachi Bldg.

5.75 billion yen

Acquired June 2019

JPR Shinsaibashi West3.75 billion yen

Acquired January 2020

Otemachi Financial City North Tower

11.4 billion yen

Acquired December 2020

Grand Front Osaka

21.3 billion yen

Acquired December 2021

Tokyo Tatemono Higashi-Shibuya Bldg.

11.3 billion yen

Acquired January 2022

Real estate for sale developed/acquired on the assumption of sale
■ Medium-sized office
T-PLUS Sendai Hirose Dori

April 2023

To be completed

T-PLUS Sapporo

December 2023

To be completed(Tentative name) Shibaura 4chome Office Building Project

January 2024

To be completed

T-PLUS Sendai

January 2024

To be completed■ Urban compact retail properties
FUNDES Kamata

February 2024

To be completed

Candeo Hotels Tokyo Roppongi

September 2017

Completed

The Square Hotel Ginza

August 2018

Completed

Hotel Gracery Asakusa

September 2018

Completed

FUNDES Suidoubashi

3.25 billion yen

Acquired December 2016

FUNDES Ueno

3.8 billion yen

Acquired June 2019

FUNDES Tenjin Nishi Dori3.31 billion yen

Acquired January 2023

Osaka Dojima Bldg.

2.46 billion yen

Acquired January 2023

■ Urban hotel■ Properties acquired by JPR25

2-3. Financial Strategy

Financial Status

Build strong financial base through lengthening of maturity and flattening of repayment amount andconservative LTV control
Debt procurement results in the Dec. ‘22 fiscal period(short-term loans excepted)

Amount raised

Beforerefinancing

Funding

Increase/
Decrease

8.0 billion yen

8.0 billion yen±0 billion yen

Average maturity
Average debt interestrate

4.9 years

6.3 years

0.41%

0.54%

+1.4 years+0.13pt

200
Diversification
status of repayment dates
Short-term loans payable
New debt procurement (Jun. '23 fiscal period)(100 million yen)

150

Commitment limit
24.0 billion yen
30

100

60

85
130

50

50

50 30

20

80

130
70

80

148

40
109 100

102

90
40

Status of interest-bearing debts

Investment corporation bonds

50

20

110

96 90
60

35

50

0

Jun. '22

Dec. '22

Period-onperiod
comparison

Interest-bearing debt

202.9
billion yen

202.9
billion yen±0 billion yen

LTV

40.0%

40.0%

±0.0ptAverage maturity

5.0 years

4.7 years-0.3 years

Average debt cost

0.74%

0.76%

+0.02pt

Ratio of long-term,
fixed interest rate
debts

100.0%

100.0%±0.0pt

20
14

30

10
(period)

Change in LTV(%)

45Control, aiming for maximum LTV of 40-45%

43

PublicOffering

41

40.8

39.5

'19.12'20.6

Debt acquisition capacity:
Approx. 46.0 billion yen

40.6

41.7
PublicOffering

40.6

39'20.12

'21.6

40.0

'21.1240.0'22.6'22.12

Initiatives in response to rising interest rates

Status of rating

JCR

R&I

AA (Stable)AA- (Stable)

Low LTV

Shift to long-term, fixedinterest rate debt

Cost control throughnegotiated debt
procurement

Use of medium
maturities

Diversification of
repayment dates26

2-3. Financial Strategy

Diverse Status of Lenders (as of December 31, 2022)

Diversifying fund procurement sources with a lender formation comprising 36 financial institutions and throughissuance of investment corporation bonds

Bank of Kyoto, Ltd.

0.5

Sumitomo Mitsui Trust Bank, Ltd.

1.0

(Breakdown of investment
corporation bonds)
Name

Mitsui Sumitomo Insurance Company, Ltd. 1.0

Mizuho Bank, Ltd.
24.0

Hiroshima Bank, Ltd.

1.0

The Hyakugo Bank, Ltd.

1.0

Investment

Tokio Marine & Nichido Fire Insurance

1.0

corporation bonds

The Chiba Bank, Ltd.

1.0

Daido Life Insurance Company

1.0

Daishi Hokuetsu Bank, Ltd.

1.0

The 77 Bank, Ltd.

1.0

Kansai Mirai Bank, Ltd.

1.0

NTT TC Leasing Co., Ltd.

1.0

Resona Bank, Ltd.

2.0

The Yamanashi Chuo Bank, Ltd.

2.0

The Hachijuni Bank, Ltd.

2.0

Nippon Life Insurance Company

2.0

Sompo Japan Insurance Inc.

2.0

The Kiyo Bank, Ltd.

2.0

The Iyo Bank, Ltd.

2.0

Yamaguchi Bank, Ltd.

3.0

The Chugoku Bank, Ltd.

3.0

Taiyo Life Insurance Company

3.0

The Nishi-Nippon City Bank, Ltd.

4.0

The Shinkumi Federation Bank

4.0

Sumitomo Life Insurance Company

4.0*1. Shinsei Bank was renamed SBI Shinsei Bank on January 4, 2023.

(Of which sustainability loan 0.6)
(Of which green loan 1.0)

37.9
MUFG Bank, Ltd.
21.0

Interest-bearing
Sumitomo Mitsui
debtBanking Corporation
15.0
202.9 bn. yen
Development Bank ofJapan, Inc.
10.9
Shinsei Bank, *1
Ltd. 10.0

Shinkin Central Bank 7.0
Meiji Yasuda Life
The Norinchukin Bank 7.0
Insurance Company 4.2
Aozora Bank, Ltd. 6.4
Mizuho Trust & Banking Co., Ltd. 7.0
The Bank of Fukuoka, Ltd. 6.0

Amount7th series of bonds

4.5

18th series of bonds

2.0

19th series of bonds

5.0

21st series of bonds

4.0

22nd series of bonds

3.0

23rd series of bonds

3.0

24th series of bonds(Green bond)25th series of bonds(Green bond)26th series of bonds
27th series of bonds(Sustainability Bonds)
28th series of bonds(Green bond)

5.0
6.0
3.0
1.4
1.0

(Status of commitment line)
LenderCreditlimit

Mizuho Bank, Ltd.

4.0

MUFG Bank, Ltd.

4.0

Sumitomo Mitsui
Banking Corporation

4.0

Mizuho Trust &Banking Co., Ltd.

4.0

Aozora Bank, Ltd.

4.0

Resona Bank, Ltd.

4.0

Total

24.0

27

2-4. Sustainability

External Evaluations and Initiatives

Focus on increased acquisition of external evaluations and improving evaluations and becoming a signatory
to/supporting initiatives.
GRESB Real Estate
Assessment
Achieved

5 Stars
for fourthconsecutive
year
MSCI Japan ESG SelectLeaders Index*1

Included forsecond consecutive year
(Included in May 2021)

CASBEE Certification

Certification
37
properties

GRESB Public Disclosure
Assessment

CDP Climate Change
Program

PRI(Principles of Responsible Investment)

AchievedA

for fifth
consecutive
year

MSCI ESG Credit Rating*1

A

Achieved
rating forthird consecutive year
DBJ Green Building
Certification
Certification
13
properties

UpgradedtoA-

Became a signatory
in May 2019
(Asset Manager)

TCFD(Task Force on Climate-related
Financial Disclosures)

Declared support
in May 2021
(Asset Manager)

Principles for Financial
Action for the 21st Century

Became a signatory
in February 2022
(Asset Manager)

BELS certification and ZEB certification

Certification3
properties

1 property
certified as
ZEB Oriented(JPR Omiya Bldg.)*1. JPR's use of data produced by MSCI ESG Research LLC or its affiliates ("MSCI") and JPR's use of MSCI logos, trademarks, service marks or index names do not constitute a sponsorship, guarantee, recommendation, or
promotion of JPR by MSCI. MSCI's services and data are the property of MSCI or the entity providing such information and are provided "AS IS" without warranty of any kind. MSCI's names and logos are trademarks orservice marks of MSCI.

28

2-4. Sustainability

Environment

Established new GHG (greenhouse gas) emission reduction plan for achievement of net zero target andsubmitted to SBTi in November 2022.
Set 2030 target of 46.2％ reduction in GHG emissions (compared to the 2019 level)
GHG emission reduction plan
Increased emissions due toexpansion in asset size
Annual increase of approx. 3%

Net zero GHG
emissions

Reduction as a result of introduction of renewableenergy and purchase of non-fossil certificates

2030
target2019 (base year)
74,931t

2050
targetReductions in categories 1, 2 and 5*-46.2%

Reduction as a result of energysaving renovation, etc.
Achieving reductions by lowering
emissions coefficients

Emissions in Scope 1, 2, and 3
Results

2021

2030

Changes in GHG emissions

Reduction rate by measure
Target
year

2030

2050

Measures

2050

2040

GHG emissions
reduction target• Category 1, 2 and 5 reductions-5%46.2% reduction• Reduction from non-fossil(comparison with 2019)certificate purchases-25% *Takes into consideration• Reduction from energy saving renovation, annual emission increase of
etc.
-15% approx. 3% associatedwith expansion in asset• Achieving reductions by lowering
emissions coefficients-35% size (+33%)• Improvement of environmental
performance through asset replacement• Introduction of renewable energy andEmissionspurchase of non-fossil certificates• Adoption of new technologies, changes
Net zeroin laws• Decrease in emission factor due toprogress on energy mix

Scope 1(t-CO₂)80,00071,912

71,502

Scope 2

Scope 374,931

GHG emissions by Scope 3 category in FY2021

70,56968,959Category 1*

60,00040,0005,729
54,43355,62458,31754,347

Category 2*

53,328

10,158Category 13*

20,0000

16,083

14,50915,283

14,92914,419

1,396

1,369

1,331

1,293

1,212

2017

2018

2019

2020

2021 (year)

32,220(Base year)

Category 3*
3,245
Category 5*
1,976* Category 1: emissions through supply chain; Category 2: emissions from capital goods; Category 3: fuel and energy related activities not included in Scope 1 and Scope 2; Category 5: emissions from waste disposal;
Category 13: emissions through property owned

29

2-4. Sustainability

Environment

Implement measures to address climate change risks
Introduction of renewable energy sources andpurchase of non-fossil value certificates◼

◼

Consider expanding initiatives, taking status of energy costs into
account.
Plan to purchase non-fossil value certificates in February and May
2023.

Progress of switch to LED◼

Used non-operating hours of tenants and move-in/move-out
construction work as opportunity to switch to LED lighting
Common areas

Acquisition of Environmental Certification◼

◼

Achieved previous target of "environmental certification acquisition
coverage rate of 80% or more" in the period ended Dec. 2022 ahead ofschedule.

Set new 2030 target of Green certification acquisition rate of 80% or more
(4-star/"A" rating or higher) and seek qualitative improvement inenvironmental performance.
Existing target

(%)

88.7
2030 target

80

Exclusively
owned areas(Corridors)(Toilets and hot watersupply rooms)

Rate of progress

59.2%

90.4%

89.6%

Period-on-period
comparison+6.4pt-3.9pt-4.6pt

1. Lighting classed as tenant assets is excluded from the calculation of rate of progress.
2. Figure excludes Grand Front Osaka.
3. The decrease in the rate of progress for common areas is mainly attributable toproperty sales.

53.4

60

74.3
54.4

60.1

70.5
59.6

34.0

40

20

27.3

28.3

'19.6

'19.12

40.2

34.0

13.4
'18.12Acquisition of ZEB certification◼

JPR Omiya Bldg. achieved
ZEB Oriented certification in
September 2022.
Design-phase evaluation
based on the assumption of
implementation of renovation
work. Will now consider
timing of implementation ofrenovation work.

77.6

65.5 71.4

0◼

New target

100

'20.6

'20.12

45.9

49.3

(pe
rio
DBJ Green Buildingd)
BELS certification'21.6'21.12'22.6

Assessment

CASBEE
Certification

S

★★★★★

19 properties

1 property

A

★★★★

17 properties

4 properties

B+

★★★

1 property

8 properties

B★★

'22.12(period)

Certification

1 property(ZEB Oriented)

1 property
1 property

30

2-4. Sustainability

SocialActively implement initiatives for tenants and employees
Improvement of tenant hospitality◼

Installed digital signage in elevator halls and elevators at 15 properties.
Show evacuation sites and BCP measures to increase resilience inaddition to news and weather forecasts.

Initiatives for Asset Management Company (TRIM) employees
Employee Satisfaction Survey◼
◼

◼

Installed the toilet congestion
prevention media service Unveil at JPR
Harajuku Bldg. tops people spending
too long in the toilets and eases
congestion, and some of the signage
advertising revenue are donated todeveloping countries.

Initiative to raise the level of management◼

Survey results are reported to management and are also relayed to
employees and used to improve the internal environment, etc.

― Examples of improvement ―•Introduction of adviser system

To facilitate the acquisition of knowledge and skills new employees need to do theirwork and to keep them highly motivated, their predecessors in the samedepartment give advice on how to do the jobs, etc.

TRIM also covers expenses for lunch meetings and gatherings to develop a
comfortable environment for new employees.
•◼

Implement employee satisfaction survey every year.

Establishment of new cafe space

Implement the "JPR Best Performance Award" every year based on
the results of the Tenant Satisfaction Survey and therecommendations of the PMs

Establishment of a new cafe space toincrease communication between officers
and employees.

Outstanding initiatives of recipient buildings are shared with those incharge of other buildings to raise overall level of portfolio.

•

JPR Best Performance Award 2022

Enhancement of training framework

Implementation of measures in response torequests for greater support for skills
development, including introduction of a
new training system and expansion in thecompany share of training expenses

JPR Yokohama Bldg.
(Reason for award)
Demonstrated excellent responsivenessat the time of tenant replacement
Made huge contribution to leasing
activities and achieved full occupancy

Diversity◼
◼

Implement online seminars on women's healthSeeks to create a pleasant work environment by encouraging male
employees to attend the seminars as well.

31

2-4. Sustainability

Governance

External recruitment of special committee member with real estate appraisal qualifications to Investment
Committee
Further strengthened corporate governance in relation to investment decision making
Stringent decision-making process for property acquisitions

JPR's corporate governance◼

Bolstering supervisory function, enabling supervision based on a much wider
perspective than before, and focusing on ensuring soundness

Attendance atmeetings of Boardof Directors in
42nd fiscal period◼

6/6 (100%)◼

Supervising
Masato Denawa Partner Attorney, Spring Partners
Officer

6/6 (100%)◼

Position

Executive
Officer

Name

Current Assignment

Tokyo Realty Investment
Yoshihiro Jozaki Management, Inc.
President and CEO

Management fee 3(Cash distribution-linked fee)Management fees 4/5(Acquisition/Merger fee)
(Sale fee)

246 million yen

28.7%

Total revenue×1.2%

208 million yen

24.4%

Distributable base amount
×3.8%×Rate of fluctuation of
distributable base amount per unit

338 million yen

39.4%

Property value×0.5%

64 million yen

7.5%

1.
2.

Deliberation(acquisition decision)(Revenue-linked fee)

Total acquisition price×0.05%

Other transactions

Confirmation of due
diligence results /Verification ofsolutions/improvem
ent measures

Management fee 2

Share

Review,screening(Asset-linked fee)

Remuneration(Dec. '22 Period)

Planning

Management fee 1

Calculation of compensation

Concludeagreement

Item

Property acquisitions

Asset management fee

Reporting

5/6 (83.3%)

Board of Directors

Professor, Graduate School of
Horticulture, Chiba University

Investment Committee

Konomi Ikebe

Approval

JPR’s Board of
Directors

Supervising
Officer

Deliberation
Related party
transactions

Compliance
Committee

5/6 (83.3%)

Strengthened corporate governance through the external recruitment of a
special committee member with real estate appraisal qualifications to theInvestment Committee

Due diligence subcommittee

Group Representative Partner of
Gyosei Certified Public Tax &Accountants' Co.
Representative Partner ofNobuhisa Kusanagi Office

An outside attorney has been appointed as a special member of the Compliance
Committee.

Compliance subcommittee

Nobuhisa
Kusanagi

In particular, the adequacy and rationality of transactions of material transaction
conducted with the sponsors, etc. are screened and verified by the Compliance
Committee and require the unanimous approval of all members, in principle.

Invest management
department

Supervising
Officer

Decisions on matters such as property acquisitions and operations are madebased on stringent examination from a wide perspective at meetings of thevarious committees.

◼

In addition to the above, there may be cases where approval by the Board of Directors and consent by
JPR are required, as designated in the Investment Trusts Act.
The chart shows the general decision-making mechanism. Depending on the nature of the proposed
acquisition, the order of the procedures may change or certain meetings may not be held.

32

3. Financial Results and Operating Forecasts

33

Overview of Financial Results for the 42nd Fiscal Period (Dec. ‘22)
(period-on-period comparison)

3. Financial Results andOperating Forecasts

Results of the 42nd fiscal period ended December 2022 DPU:7,750 yen (down 50 yen, period-on-period)

Jun. '22
PeriodDec. '22
PeriodDPU (yen) (per unit)

18,357
17,019
1,338
9,014
7,946
1,067
9,343
43
778
8,607
8,607
830
7,800

18,73917,392
1,347
9,466
8,199
210
1,056
9,273
8
811
8,469
8,469
815
73
7,750

+381
+372
+8 ⑤
+452
+252
+210 ⑥
-11
-70
-35
+33
-138
-138
-14
+73
-50

Number of units outstanding

997,178

997,178-

Item
Operating revenue
Rental revenue
Gain on sale of property

Operating expense
Expenses related to rent business
Revenue
Loss in an exchange of properties
and profit
General and adminisutrative expenses(millionyen)
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Transferred from reserve

Reserve (million yen)

Reversal amount of reserve

ChangeItem
Rental revenue
Rental revenue
Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation

Rental revenue (existing properties)① [Rent and common charge] Increased mainly due to progress in leasing activities③ [Cancellation penalty income and income equivalent to expense for restoration]
Increased due to agreed cancellation with tenant

Expenses related to rent business (existing properties)④ [Utilities expense ] Increased mainly due to higher electricity bills
Balanceof utilities (② - ④)deteriorated(-141 million yen)
水道光熱費収支（②- ④）は悪化（-141百万円）

Gain and loss on sale of property⑤ [Gain on sale of property] Recorded gain on sale mainly as a result of the transfer
of JPR Umeda Loft Bldg. (third and final transfer, 30% ownership interest)
Part of the gain on sale was reserved internally to stabilize future distributions⑥ ［a loss on the exchange of real estate, etc.］ Recorded a loss as a result of

Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Jun. '22
PeriodDec. '22
PeriodChange17,01916,092
13,899
1,802
390
927
798
11
42
75
7,946
699
952
2,523
29
469
307
630
2,045
287
11,118
4.8%
9,072
3.9%
97.8%

17,392
16,032
13,831
1,802
398
1,360
1,006
82
182
89
8,199
703
1,301
2,507
30
432
306
643
2,055
219
11,248
4.8%
9,193
3.9%
97.0%

+372
-59
-68
+8
+432
+207
+71
+140
+13
+252
+3
+348
-16
+0
-37
-1
+12
+9
-68
+129
- pt
+120
- pt
-0.8ptTransferredproperties※1

Existing
properties※2

-105
-105
-104
-1
-27
-10
-0
-3
-0
-13
-91

+478
+45
+35
+9
+432
+207
+71
+140
+13
+280
+3
+348
-6
+0
-33
-0
+12
+22
-68
+220

-77

+198

*1. Increase or decrease as a result of replacement of the following assets is calculated.
Jun. '22 period: Transfer of JPR Umeda Loft Bldg. (second transfer,30% ownership interest)
Dec. '22 period: Transfer of JPR Umeda Loft Bldg. (third and final transfer,30% ownership interest)*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ④).

the replacement of Gotanda First Bldg. with Shinjuku Center Bldg.

34

①

②
③
③

④

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 42nd Fiscal Period (Dec. ‘22)
(period-on-period comparison)

Total assets will increase slightly as a result of implementation of the asset replacement strategy.

Item
Current Asset
Cash and deposits (including trust)
Other current asset

Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets

Deferred assets
Investment corporaton bond issuance costs

Investment unit issuance expenses

BalanceSheet(millionyen)

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of investments corporation bonds

Other current liabilities

Noncurrent liabilities
Long-term loans payable
Investment corporation bonds
Tenant leasehold and security deposits

Total liabilities
Unitholders' capital
SurplusReserve for reduction entry

Unappropriated retained earnings

Total net assets
Unitholder's equity ratio

Jun. 30 '22
PeriodDec. 31 '22
PeriodChange40,22039,557662
466,559453,326
11,804
1,427
226
180
46
507,005
25,17816,0002,000
7,178
208,914
149,000
35,90024,014
234,093261,751
11,161
2,546
8,614
272,91246,26145,506755
461,196
447,979
11,804
1,412
197
165
31
507,655
30,52421,0002,000
7,524
203,527
144,000
35,90023,627
234,051
261,751
11,852
3,376
8,476
273,603+6,041+5,949+92-5,362-5,347
-0
-15
-29
-14
-14
+649
+5,345+5,000+345-5,387-5,000
-387
-41
+691
+830
-138
+691

53.8%

53.9%

Increase or decrease in cash and deposits
Item+0.1ptChangeNet cash provided by operating activities+15,155

Income before income taxes+8,469Depreciation and amortization+2,055

Other, net+4,629Net cash provided by investing activities-1,428Purchase of property, plant and equipment
Other, net-1,239-188

Net cash provided by financing activities-7,777

Proceeds from lisbilities+8,000

Repayment of liabilities-8,000

Dividends paid

-7,777

Total cash and deposits+5,949

Increase or decrease in noncurrent assets
Item

ChangeSold properties-4,801

Capital expenditures+1,503

Depreciation-2,055

OthersTotal noncurrent assets-9-5,362

Increase or decrease in liabilities
Item

Balance at start of
New procurement
periodRepayment/
redemption

Balance at end of
periodChangeShort-term loans payable

-

-

-

-

-

Long-term loans payable

165,000+8,000-8,000165,000-

Investment corporation bonds

37,900--37,900-202,900+8,000-8,000202,900-

Total liabilities353. Financial Results andOperating Forecasts

Overview of Financial Results for the 42nd Fiscal Period (Dec. ‘22)(compared with forecast)

Results of the 42nd fiscal period ended December 2022: DPU was in line with the forecast
Dec. '22
PeriodDec. '22
Period（forecast）（actual）

Revenue
Loss in an exchange of properties
and profit
Selling, general and adminisutrative expenses(millionyen)
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Transferred from reserve
Reserve(million yen) Reversal amount of reserve

18,472
17,128
1,343
9,078
8,015
1,063
9,393
3
817
8,579
8,578
850
-

18,73917,392
1,347
9,466
8,199
210
1,056
9,273
8
811
8,469
8,469
815
73

+267
+264
+3
+387
+183
+210
-6
-119
+4
-5
-109
-109
-34
+73

DPU (yen) (per unit)

7,750

7,750

-

997,178

997,178-

Item
Operating revenue
Rental revenue
Gain on sale of property
Operating expense
Expenses related to rent business

Number of units outstanding (unit)

ChangeItem
Rental revenue
Rental revenue
Rents and common charge

Land rent⑤

Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums
Repairs and maintenanceRental revenue

Property management fees①[Rent and common charge] Reflects progress with leasing activities.

Management association accounts

Depreciation③[Cancellation penalty income and income equivalent to expense for restoration] Increased as aresult of agreed cancellation with tenant

Expenses related to rent business④ [Utilities expense] Increased mainly due to higher electricity bills
Balanceof utilities (② - ④)- is
expected
to improve slightly (+2 million yen)
水道光熱費収支（②④）
は若干改善（+2百万円）

Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)a loss on the exchange of real estate, etc.

Occupancy rate based on cncluded contract(period average)

Dec. '22
Period（forecast）

Dec. '22
Period（actual）

Change17,12816,00113,805
1,802
394
1,126
840
65
138
82
8,015
703
1,138
2,505
29
395
309
643
2,059
231
11,172
4.8%
9,112
3.9%
96.6%

17,392
16,032
13,831
1,802
398
1,360
1,006
82
182
89
8,199
703
1,301
2,507
30
432
306
643
2,055
219
11,248
4.8%
9,193
3.9%
97.0%

+264
+30
+25
-0
+4
+233
+165
+16
+44
+6
+183
-0
+163
+1
+0
+37
-2
-0
-4
-11
+76
- pt
+80
- pt
+0.4pt

①

②
③
③

④

⑤［a loss on the exchange of real estate, etc.］ Recorded a loss as a result of
the replacement of Gotanda First Bldg. with Shinjuku Center Bldg.

36

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 43rd Fiscal Period (Jun. ‘23)
(compared with 42nd period)

Forecast of the Jun. ‘23 fiscal period, DPU: 7,600 yen (down 150 yen from actual result for the Dec. ‘22 fiscal period)

Item

Dec. '22
PeriodJun. '23
PeriodItem

ChangeRental revenue
Gain on sale of property
Operating expense
Revenue andprofit(million yen)

Expenses related to rent business
General and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income

Reserve(millionyen)

DPU (yen)Transferred from reserve

Reversal amount of reserve(per unit)

18,73917,392
1,347
9,466
8,199
1,056
9,273
8
811
8,469
8,469
815
73
7,750

18,101
17,220
881
9,341
8,314
1,027
8,760
31
801
7,990
7,990
411
7,600

-638
-172
-465
-125
+114
-28
-512
+23
-10
-479
-479
-404
-73
-150

997,178

997,178-

Rental revenue
Rental revenue
Rents and common charge⑥

Land rent
Other fixed income

Other rental revenue
Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes⑥

Insurance premiums

Repairs and maintenance
Property management fees
Management association accounts

Depreciation

Number of units outstanding

Other expenses related to rent business① [Rent and common charge] Likely to increase due to progress in leasing activitiesNOI
NOI yield (book value)
Rental income-real estate③ [Cancellation penalty income and income equivalent to expense for restoration]

After-depreciation (book value)

Expected to decrease in the absence of revenue recorded the previous period

Occupancy rate based on cncluded contract(period average)

Rental revenue (existing properties)

Expenses related to rent business (existing properties)④ [Utilities expense ] Likely to increase due to higher electricity bills

Jun. '23
PeriodChange（forecast）（forecast）
Operating revenue

Dec. '22
Period17,392
16,032
13,831
1,802
398
1,360
1,006
82
182
89
8,199
703
1,301
2,507
30
432
306
643
2,055
219
11,248
4.8%
9,193
3.9%
97.0%

17,22016,12813,930
1,801
395
1,092
1,023
5
63
8,314
711
1,392
2,591
29
372
304
640
2,041
230
10,947
4.7%
8,906
3.8%
97.3%

Replaced *1
properties

Existing *2
properties

-5
+63
+64
-0
-68
+4
-68
-9
+5
-23
+5
-6
-9
-0
+0
-0
-18
+3
+0

-167
+32
+35
-0
-2
-199
+12
-7
-173
-31
+138
+1
+97
+93
-0
-60
-1
-2
+3
+7
-301

+18

-305

-172
+95
+99
-0
-3
-268
+16
-76
-182
-25
+114
+7
+91
+83
-0
-59
-2
-2
-14
+10
-301
-0.1pt-287-0.1pt+0.3pt

①

②
③
③

④
⑤

*1. Increase or decrease as a result of replacement of the following assets is calculated.
Dec.
'22 period: Additional acquisition of Shinjuku Center Bldg.
2022年12月期：新宿センタービル追加取得
Sale of Gotanda First Bldg., JPR Umeda Loft Bldg. (third and final transfer,30% ownership interest)

Balance of utilities (② - ④) is expected to deteriorate (-85 million yen)
⑤ [Property and other taxes] Property tax will increase due to the expenses
incurred for properties acquired the previous year and revaluation

Gain on sale of property

Jun. '23
Acquisition of Osaka Dojima Bldg., FUNDES Tenjin Nishidori, Ochanomizu Sola City
June
'23 period:
period:大阪堂島ビルの取得、FUNDES天神西通りの取得、御茶ノ水ソラシティの取得
Sale of JPR Crest Takebashi Bldg.
*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind
the increase/decrease for existing properties are described in ① to ⑤).

⑥ ［Gain on sale of property］Due to the transfer of JPR Crest Takebashi Bldg.,
a gain on sale is scheduled to be recorded37

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 44th Fiscal Period (Dec. ‘23)
(compared with forecast for the 43rd period (Jun. ‘23))

Forecast of the Dec. ‘23 fiscal period, DPU: 7,600 yen (the same as the forecast for the Jun. ‘23 fiscal period)
Jun. '23
PeriodDec. '23
Period（forecast）（forecast）

DPU (yen) (per unit)

18,101
17,220
881
9,341
8,314
1,027
8,760
31
801
7,990
7,990
411
7,600

17,46917,469
9,412
8,459
952
8,057
3
830
7,230
7,230
348
7,600

-632
+249
-881
+70
+145
-74
-703
-28
+28
-760
-760
-411
+348
-

Number of units outstanding

997,178

997,178-

Item
Operating revenue
Rental revenue
Gain on sale of property
Operating expense
Revenue andprofit(million yen)

Expenses related to rent business
General and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income

Reserve (million yen)Transferred from reserve
Reversal amount of reserve

ChangeItem
Rental revenue
Rental revenue
Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes④

Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation

Rental revenue (existing properties)① [Rent and common charge] Likely to increase due to progress in leasing activities

Expenses related to rent business (existing properties)③ ［Utilities expense］ Likely to fall due to decrease in fuel cost adjustment

Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)

Balanceof utilities (② - ③)
is expected to improve (+82 million yen)
水道光熱費収支（②- ③）は改善する見込み（+82百万円）'Jun. '23
Period（forecast）

Dec. '23
Period（forecast）

Change17,22016,12813,930
1,801
395
1,092
1,023
5
63
8,314
711
1,392
2,591
29
372
304
640
2,041
230
10,947
4.7%
8,906
3.8%

17,46916,241
14,044
1,801
395
1,228
1,165
62
8,459
709
1,454
2,579
29
429
311
639
2,056
248
11,066
4.7%
9,009
3.8%

+249
+113
+113
-0
+136
+142
-5
-0
+145
-1
+62
-11
+0
+56
+6
-1
+15
+17
+119
- pt
+103
- pt

Replaced
properties※1

Existing
properties※2

+12
+9
+10
-1
+3
-2
+6
-12
-1
-1
-7
+0
-0
-0
-1
+0
+23

+236
+103
+102
+1
+132
+145
-5
-7
+157
+0
+63
-4
+0
+57
+7
-1
+17
+16
+95

+25

+78

①

②

③

*1. Increase or decrease as a result of replacement of the following assets is calculated.
Jun. '23 period: Acquisition of Ochanomizu Sola City, sale of JPR Crest Takebashi Bldg.

Reserve④ ［Reversal amount of reserve］ Through utilization of internal reserves, maintain distribution 7,600*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ③).

38

3. Financial Results andOperating Forecasts

Change in Rental Business Profits and Gain or loss on the sale ofproperties

Item
Operating revenue
Rental revenue (fixed income)Rents and common charge

Land rent
Other fixed income
Other rental revenue (variable income)incidental income
Cancellation penalty, etc.
Income ecquivalent to expense for restoration to original condition

Other variable income
Expenses related to rent business (excluding depreciation)

Rental businessprofits(million yen)

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

NOI
Depreciation
Expenses related to rent business

Gain or loss on sale ofproperties (million yen)

Rental income-real estate（a）
Capital expenditures
NCF
Gain on sale of real estate（b）

Loss on sale of real estate（c）※
Rental income-real estate, etc. (million yen, a+b-c）

Dec. '21 Period

Jun. '22 Period

Change16,382
15,475
13,296
1,802
376
907
787
10
56
52
5,603
628
849
2,422
27
532
289
612
240
10,779
2,127
7,731
8,651
1,601
9,177
1,870
856
9,665

-0.8%
-0.8%
-1.0%
0.3%
-1.4%
16.4%

3.8%
-0.3%
19.0%
-0.5%
5.6%

-3.1%
1.3%
3.1%
-4.1%
16.9%
-5.9%

-1.4%

Dec. '22 Period

Change17,01916,092
13,899
1,802
390
927
798
11
42
75
5,900
699
952
2,523
29
469
307
630
287
11,118
2,045
7,946
9,072
1,381
9,737
1,338
10,410

3.9%
4.0%
4.5%
0.0%
2.2%
1.3%

5.3%
11.2%
12.0%
4.2%
-11.7%

3.2%
-3.8%
2.8%
4.9%
-13.7%
6.1%

7.7%

17,392
16,032
13,831
1,802
398
1,360
1,006
82
182
89
6,144
703
1,301
2,507
30
432
306
643
219
11,248
2,055
8,199
9,193
1,503
9,745
1,347
210
10,329Jun. '23 Period

Dec. '23 Period

Change（forecast）

Change（forecast）

Change

2.2%
-0.4%
-0.5%
0.0%

17,22016,12813,930
1,801
395
1,092
1,023
5
63
6,273
711
1,392
2,591
29
372
304
640
230
10,947
2,041
8,314
8,906
1,557
9,390
881
9,787

-1.0%
0.6%
0.7%
0.0%

17,46916,241
14,044
1,801
395
1,228
1,165
62
6,403
709
1,454
2,579
29
429
311
639
248
11,066
2,056
8,459
9,009
1,800
9,265
9,009

1.4%
0.7%
0.8%
0.0%

46.7%
26.0%

4.1%
0.6%
36.6%
-0.7%
-8.0%

1.2%
0.5%
3.2%
1.3%
8.8%
0.1%

-0.8%

-19.7%
1.7%

2.1%
1.1%
7.0%
3.3%
-13.8%

-2.7%
-0.7%
1.4%
-3.1%
3.6%
-3.6%

-5.2%

12.5%
13.9%

2.1%
-0.2%
4.5%
-0.4%
15.3%

1.1%
0.8%
1.8%
1.2%
15.6%
-1.3%

-7.9%

* “Gain (loss) on transfer of property” for the Dec. ’22 period is a loss on the exchange of real estate, etc.

39

3. Financial Results andOperating Forecasts

Change in Rental Business Revenue

Rental revenue for the Jun. ‘23 period is expected to rise approx. 90 million yen (period-on-period)
Rental revenue for the Dec. ‘23 period is expected to rise approx. 110 million yen (period-on-period)

Rent revenue (factor for period-on-period changes)
Rent revenue

Plus item

Minus item

(million yen)Rents and common charge

Rents and common charge

+113

-68
Moveins+418

Rents and common charge+99
Moveins+299
Revision Transfer
etc.
-104
+45

16,092
Moveins+573

Moveouts-583

16,032Others+8

Moveouts-291

Acquisition
Transfer+10

Acquisition
Transfer+64
Revisionetc.
+26

Moveouts-322

16,128Others-3

Revisionetc.
+716,241Others-0

Acquisition +70
Transfer-59

Acquisition +249
Transfer-1852022.6

Dec. '22 period

Jun. ’23 period (forecast)

Dec. ’23 period (forecast)40

4. Appendix

41

4. Appendix

LTV
NOI yield
Afterdepreciation
yield
Implied cap
rate

Fund Summary(book value)(appraisal value)(acquisition value)(book value)(appraisal value)(acquisition value)(book value)(appraisal value)(NOI yield)(After-depreciation
yield)FFO
AFFO
FFO per unit
EPU
Cash distribution per unit
Dividend yield
ROE
Reserve for reduction entry perunit
Net asset per unit
NAV per unit
Investment unit price(immediately before the ex-rightdate)
NAV multiple
PBR
PER
FFO ratio
Unitholder’s equity ratio(FFO)
Pay out ratio(AFFO)

Jun. 2020 Period
39.5%
32.2%
4.9%
5.2%
4.1%
4.0%
4.2%
3.4%
4.6%

Dec. 2020 Period
40.6%
33.2%
4.9%
5.2%
4.1%
4.0%
4.2%
3.4%
4.3%

Jun. 2021 Period
40.6%
33.1%
4.8%
5.1%
4.1%
3.9%
4.1%
3.3%
3.6%

Dec. 2021 Period
41.7%
33.8%
4.6%
4.8%
3.8%
3.7%
3.9%
3.1%
3.7%

Jun. 2022 Period
40.0%
31.9%
4.5%
4.8%
3.8%
3.7%
3.9%
3.1%
3.8%

Dec. 2022 Period
40.0%
32.0%
4.5%
4.8%
3.8%
3.7%
3.9%
3.1%
3.9%

3.7%

3.5%

2.9%

3.0%

3.1%

3.2%

9,341 million yen
7,961 million yen
9,748 yen
7,593 yen
7,595 yen
4.6%
5.7%

9,510 million yen
7,855 million yen
9,924 yen
8,181 yen
7,750 yen
4.5%
6.1%

9,436 million yen
8,066 million yen
9,847 yen
8,474 yen
7,657 yen
3.4%
6.3%

9,006 million yen
7,404 million yen
9,398 yen
8,236 yen
7,550 yen
3.7%
6.1%

9,315 million yen
7,933 million yen
9,341 yen
8,631 yen
7,800 yen
3.8%
6.3%

9,388 million yen
7,885 million yen
9,414 yen
8,493 yen
7,750 yen
4.1%
6.2%

719 yen

1,152 yen

1,969 yen

2,657 yen

3,386 yen

4,129 yen

266,984 yen
371,053 yen

267,570 yen
372,725 yen

268,295 yen
375,544 yen

268,875 yen
383,368 yen

273,684 yen
394,302 yen

274,378 yen
394,241 yen

329,000 yen

346,500 yen

444,000 yen

403,500 yen

408,000 yen

378,500 yen

0.9 times
1.2 times
21.7 times
16.9 times
54.1%
77.9%
91.4%

0.9 times
1.3 times
21.2 times
17.5 times
52.9%
78.1%
94.5%

1.2 times
1.7 times
26.2 times
22.5 times
53.1%
77.8%
91.0%

1.1 times
1.5 times
24.5 times
21.5 times
52.0%
80.3%
97.7%

1.0 times
1.5 times
23.6 times
21.8 times
53.8%
83.5%
98.0%

1.0 times
1.4 times
22.3 times
20.1 times
53.9%
82.3%
98.0%

1. [after-depreciation] Implied cap rate = [after depreciation] NOI

5. Dividend yield = Cash distribution per unit (annualized, most recent

10. PER (price earnings ratio) = Investment unit price / EPU (annualized,(annualized, forecast for the next fiscal period x 2) / (market
capitalization + interest-bearing debts – cash and deposits + tenant

result x 2) / investment unit price6. ROE (return on equity) = Net income (annualized, most recent result x

most recent result x 2)
11. FFO multiple = Investment unit price / FFO per unit (annualized, mostleasehold and security deposits)
2. FFO = Net income + depreciation – gain on loss on sale of real estate
properties (including loss on retirement of non-current assets)
3. AFFO = FFO – capital expenditures
4. EPU = Net income / number of units outstanding (end of period)2) / net assets
7. NAV per unit = (Net assets + unrealized gains or losses – total cash
distributions) / number of units outstanding (end of period)
8.
NAV multiple = Investment unit price / NAV per unit
9.
PBR (price book-value ratio) = Investment unit price / net assets per
unit

recent result x 2)
12. Unitholder’s equity ratio = Net assets / total assets
13. FFO payout ratio = Total cash distributions / FFO
14. AFFO payout ratio = Total cash distributions / AFFO
15. Reserve for reduction entry indicates the figure calculated by adding or
subtracting the amounts brought forward or reversed in the relevant
fiscal period to or from the balance at the end of the fiscal period.

42

4. Appendix

Portfolio■ Asset size (based on acquisition price, 100million yen),Occupancy rate (%)
Office properties in Tokyo

Retail properties

95.2

94.0 93.8

92.6 93.1

94.3 94.9

97.7 98.3

99.0 98.7

98.0

97.0 96.2 96.4

96.1
93.6 94.0

95.0 94.8 94.4

3,809

1,257
922

1,396

1,636

1,796

1,976 2,026(average)

Office properties in Tokyo 337.9 billion yen

96.7%

Office properties in Other Cities 59.0 billion yen
Retail properties 91.7 billion yen

Occupancy rate

Office properties in Other Cities
96.1

Breakdown by area and by asset class(as of Dec. 31, 2022)

Occupancy rate

2,092

2,224

2,453 2,519

2,751 2,806

2,994

3,106

3,312 3,415 3,415

95.6

3,919 3,986

96.9 97.0 97.2 97.5 97.4

97.8 98.3 98.5 98.4 98.2

4,047 4,047 4,055 4,095 4,103 4,103

4,214

99.2 99.2 99.5 99.6 99.4

4,350 4,350 4,350 4,350 4,395 4,395

98.2

96.9

97.8 97.0

4,848 4,922 4,887
4,571 4,675 4,656

3,449

945

120 .0110 .0100 .0
90. 0
80. 0
70. 0
60. 0
50. 0
40. 0
30. 0
20. 0
10. 0
0.0

1

2

3

'02

4
'03

5

6
'04

7

8
'05

9

10

11

'06

12

13

'07

14
'08

15

16

17

'09

18
'10

19

20

21

'11

22
'12

23

24

25

'13

26
'14

27

28
'15

29

30
'16

31

32
'17

33

34
'18

35

36
'19

37

38
'20

39

40
'21

41

42
'22

(period)(year)■ Every kind of ratio
Ratio by Asset Class

Ratio by Area

(Ratio of Acquisition Price)(Ratio of Acquisition Price)

Urban Retail
Property, etc.
Portfolio
management
standards
70 - 90%
for officeproperties

GreaterTokyo
Office81.2%(Office Properties, Ratio of
Acquisition Price)
Medium-sized(3,000 m2 to lessthan 10,000 m2)
26.2%

Other cities
14.8%

18.8%

Ratio by Asset Size

Portfolio
management
standards
80 - 90%
for Tokyo

Large-sized(10,000 m2 to lessthan 30,000 m2)

30.2%
Central
Tokyo
55.0%

21.4%

52.5%
Very large(30,000 m2 or
more)

Ratio by Number of Minutes
Walk from Nearest Station(Ratio of Acquisition Price)
Within 5-10
minutes
9.7%

Directly
linked16.4%

Ratio by Contract Type(Office Properties, Area Ratio)

Fixed-term lease contract

14.2%

Within 3-5
minutes
16.6%

Within 1-3
minutes
27.6%

Within 1
minute29.6%

Ordinary
lease contract

85.8%

43

4. Appendix

Diversification of Tenants (as of December 31, 2022)■ Ratio of tenant occupancy◼

◼

■ 20 largest tenants (by property; based on end tenants)

The number of office tenants other than the sponsors, etc. with tenant
occupancy of 1% or more is only 1 (combined occupancy: 1.0%)(excluding property comprising land with leasehold interest).

Category(No. of tenants)

Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenants with
1% or more

23.9%
Sponsors, etc. with
1% or more

Ratio of
Leased space
occupancy(㎡)(%)

TenantOccupying property

ABC Development
Corporation

Housing Design Center Kobe

35,444.13

7.3

Seiyu GK

Tanashi ASTA

31,121.71

6.5

19,740.95

4.1

9,558.51

2.0

8,076.85

1.7

Ito-Yokado Co., Ltd. JPR Musashikosugi Bldg.
Retail tenants
Olympic Group
Musashiurawa Shoppingwith 1% or more Corporation
Square(7 companies) Tower Records
JPR Shibuya Tower
Japan Inc.
Records Bldg.
A company

Cupo-la Main Bldg.

5,963.00

1.2

Ｂ companyMusashiurawa Shopping
Square5,285.40

1.1

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

The Otemachi Tower (landwith Leasehold Interest)

7,875.50

1.6

Other tenantswith 1% or more C company(1 company)

JPR Nagoya Fushimi Bldg.

4,904.64

1.0

D company

Yakuin Business Garden

4,719.50

1.0

E company

Sompo Japan Sendai Bldg.

4,392.04

0.9

F company

Shinjuku Center Bldg.

4,318.79

0.9

G company

Shinjuku Square Tower

4,242.48

0.9

H company

Oval Court Ohsaki MarkWest

4,088.44

0.8

I company

Niigata Ekinan Center Bldg.

4,078.97

0.8

Manufacturing
8.4%

J company

MS Shibaura Bldg.

3,922.74

0.8

Information andCommunications
13.3%
Wholesale and Retail
Finance and
15.6%
Insurance
10.9%

K company

Olinas Tower

3,544.12

0.7

L company

Olinas Tower

3,544.12

0.7

M company

Rise Arena Bldg.

3,522.90

0.7

N company

BYGS Shinjuku Bldg.

3,460.16

0.7

1.6%

Other tenants with
1.0%
1% or more

Less than 1%
73.5%■ Ratio by tenant’s industry(office properties, area ratio)*1
Medical and Welfare
Transportation
2.7% Others
0.5%
0.5%
Public Services
1.3%
Construction
6.6%
Real Estate
Services
11.3%
29.0%

*1. Figures exclude GRAND FRONT OSAKA.

Less than 1%(1,171companies)

44

4. Appendix

Move-Ins and Move-Outs of Tenants (as of December 31, 2022)■ Move-in/move-out spaces by property■ Breakdown and changes in move-ins and move-outs(Move-ins)(move-out)(Move-in/move-out spaces by area and asset class: m2)
Move-ins
Office properties inCentral Tokyo

4,979

8,662

-3,682

Office properties inGreater Tokyo

1,804

1,860

-56

Office properties in
Other Cities

816

810

5

Retail properties

0

Total

7,600

0
11,333-394

Gotanda First Bldg.

-4,234JPR Ichigaya Bldg.

-290

-290

0

Shinjuku Square Tower-614-1,484870

BYGS Shinjuku Bldg.

0

-208

208

Shinjuku Center Building

-175

-306

131

JPR Harajuku Building

-394

-394

0

Science Plaza - Yonbancho Plaza

56

0

56

Shibadaimon Center Building

0

-745

745

Tokyo Square Garden

186

-202

388

JPR Kojimachi Bldg.

586

0

586

Otemachi Financial City North Tower

-1

-290

289

Tokyo Tatemono Higashi Shibuya Bldg.

1,592

0

1,592

JPR Chiba Bldg.

183

0

183

Shinyokohama 2nd Center Bldg.

301

-115

417

Kawaguchi Center Bldg.

0

-103

103

Tachikawa Business Center Bldg.

110

0

110

Yume-ooka Office Tower-112-380 267

Olinas Tower

-711

-711

JPR Yokohama Bldg.

0-169 169

JPR Omiya Bldg.

300

0

300

Sencity Bldg.

-127

-379

251

JPR Naha Bldg.

0

-349

349

Tenjin 121 Bldg.

-177

-236

0
-3,732■ Reasons for move-ins and move-outs

Eviction, etc.
25%
Downscaling or
cost reduction
3%
Consolidation
3%

New
establishment
or expansion
47%

Eviction, etc.
6%Moveins
36

Better locationor building
22%

New establishment
or expansion
6%
Better locationor building
6%

Moveouts
31
Downscaling or
cost reduction
65%

Consolidation
16%

Move-ins

Shin-Kojimachi Bldg.

Net
Increase/
Decrease

Move-outs

Move-outs

JPR Nagoya Fushimi Bldg.

408

JPR Shinsaibashi West

-224

-505
-4,234

（㎡）

111
0

0

59
408

-224

0

* Gotanda First Bldg. was sold on December 22, 2022.

45

4. Appendix

Yields (as of December 31, 2022)■ Yields by area and by asset class(based on book value)■ NOI yield by property (based on book value)
Central Tokyo

Greater Tokyo and Other Cities(NOI yield)(%)

10

Circle size = portfolio asset size (book value) Center of circle= NOI yield
OfficeOfficeOfficeproperties
properties in Greater properties
in Otherin Central
Tokyo
RetailCitiesTokyo
properties

5.8%

5

5.6%

0
Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyocho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.

4.8%
Portfolio average
4.8%

JPR Ichigaya Bldg.
Shinjuku Square Tower

Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.

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

JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi site (land with…

OfficeOfficeOfficeproperties properties
in Central in Greater properties
in Other
Tokyo
Tokyo
Cities

4.5%
3.6%

4.2%

Science Plaza - Yonbancho…
Shibadaimon Center Bldg.

Retailproperties

4.1%

Tokyo Square Garden
JPR Kojimachi Bldg.
Otemachi Financial City North…
Tokyo Tatemono Higashi-…
JPR Shibuya Tower Records…

Portfolio average
3.9%

JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.

0

JPR Ginza Namiki-dori Building
FUNDES Suidobashi
Average of Central Tokyo

(%)

0

15

8.3
4.6
5.0

Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.

3.3
3.3
5.0
4.8
4.3
6.3
3.1
3.7
3.6
5.7
5.1
2.8
3.0
2.7
3.9
4.7
3.1
3.4
2.8
2.9
3.2
4.1

Rise Arena Bldg.
Olinas Tower
JPR Yokohama Bldg.
Sencity Bldg.

6.3
4.8
6.5
5.0
5.6
4.3
5.2

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki DICE Bldg.
FUNDES Ueno
Average of Greater Tokyo

4.3

Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.

5.2

JPR Nagoya Fushimi Bldg.

7.1
8.5

Yakuin Business Garden
JPR Shinsaibashi West

3.2
3.1

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

9.6
8.9

10.4
9.0
11.1
11.0

JPR Naha Bldg.

GRAND FRONT OSAKA (North…

10.0
8.8
8.4

6.4
4.5
3.9
5.8

Niigata Ekinan Center Bldg.

GRAND FRONT OSAKA (Umekita…

(%)

15

6.6
7.3
6.8

JPR Yokohama Nihon Odori Bldg.

JPR Omiya East

8.3

10

Arca East Bldg.

Yume-ooka Office Tower

3.8

5

JPR Chiba Bldg.

15.8

Across Shinkawa Bldg. Annex

0

5

4.5
6.1
6.0
3.1
4.9
6.5

Oval Court Ohsaki Mark WestBYGS Shinjuku Bldg.

(%)

10

Gotanda First Bldg.

4.2%

10

5

3.0

4.9

8.7

4.8
6.4
4.8
5.6

46

4. Appendix

Rent and Occupancy■ Change in occupancy rate and rents
Item

Dec. 2019 Period

Jun. 2020 Period

Dec. 2020 Period

Jun. 2021 Period

Dec. 2021 Period

Jun. 2022 Period

Dec. 2022 Period

99.2

99.4

99.1

97.7

95.8

96.9

95.9

98.3

99.3

98.7

96.5

94.2

93.3

93.7

Average rent (entire area), yen

18,47718,801

18,977

19,166

19,445

19,496

19,566

Average rent (central Tokyo), yen

21,83322,18322,31322,451

22,53322,50422,716

Average rent (greater Tokyo), yen

17,403

18,13918,196

18,217

18,42018,362

18,359Average rent (other cities), yen

13,562

13,72013,912

14,067

14,606

14,66014,653

-6.9

-4.8

-3.2

-0.6

-0.6

-0.4

+1.4

100.0

100.0

100.0

99.3

99.5

99.9

99.7

99.9

100.0

100.0

99.2

99.2

99.4

99.6

Occupancy rate based on concluded
contract, %Occupancy rate based on generated
rents, %OfficeGap in rent (%)

RetailOccupancy rate based on concluded
contract, %Occupancy rate based on generated
rents, %■ Status of rent revision, rent through tenant replacement andcontribution rate (Dec. ‘22)(%)

Increase/
Decrease(million yen)

Increase/
Decrease
Ratio (%)

46.8

86.7

+0.5

+0.2

15

6.8

12.6

+1.7

+5.5

Decrease in rent

3

2.4

4.5

-1.2

-6.8

Neither upward or
downward revision of
rent

106

37.6

69.7

-

-

Tenant replacement

34

7.1

13.3

-1.0

-2.4

Upward revision

11

2.7

5.0

+1.3

+9.2

Decrease in rent

17

3.3

6.1

-2.4

-11.1

6

1.1

2.1

-

-

158

53.9

100.0

-0.4

-0.2

Number ofcontracts(thousand m2)

124

Upward revision

Item
Rent Revisions

Neither upward or
downward revision of
rent
Total (Rent revision +Tenant replacement)

Area

Area ratio■ Leased area by rent level/ratio of contracts withupward rent revision (contracts renewed Dec. ’22 period)
Item

Area

(thousand m2)

Area ratio(%)

Ratio ofcontractswith upwardrevision (%)

Lower than market rent

12.7

31.0

26.8

Within market range

9.2

22.3

7.9

Market rent more

19.2

46.7

0.0

■ Leased area by rent level (contracts renewed Jun.
‘23. period - Dec. ’24 period)
Item

Area (thousand m2)

Area ratio (%)

Lower than market rent

54.5

21.4

Within market range

77.6

30.5

Market rent more

122.7

48.1

47

4. Appendix

Value Enhancing Construction Work

Reinforcement of property competitiveness through renovation
work contributed to tenant leasing― Example of JPR Omiya Bldg. ―◼
◼

A large tenant moved out in April last year. And occupancy rate decreased to 41.7%
Reinforcement of property competitiveness through renovation work on common areas contributed
to tenant leasing, and occupancy rate based on concluded contracts will increase to 96.5%
Entrance

Elevator hallCommon hallway

Toilet48

4. Appendix

Appraisal Value (as of December 31, 2022)

Unrealized gains and ratio of unrealized gains remained at a high level

Status of change in appraisal value

Appraisal value and unrealized gains
Appraisal value

Unrealized gains

Ratio of unrealized
gains

587.0 billion yen 127.2 billion yen(down 0.9 billion yen
from 41st period(Jun. ‘22))(down 0.8 billion yen
from 41st period(Jun. ‘22))◼

The property sales market remained buoyant and the downward trend incap rates continued.
(Appraisal Value)

1. Impact of acquired and sold properties is not included in calculation of change from previous period.

(Direct Cap Rate)(number of property)

Jun. ‘22
periodDec. ’22
periodLowering

42

20

25

Same

25

45

16

Rising00Jun. ‘22
periodDec. ’22
periodIncrease

42

24

Same

15

Decrease10

27.7%(period-on period
comparison +0.2pt)(number of property)

Changes in unrealized gains and losses(100 mn. yen)

Unrealized gains and losses (left axis)
含み損益（左軸）

127.2 billion yen

含み損益率（右軸）
Ratio of unrealized gains and losses (right axis)

1,400

(%)

30

1,200
1,000

27.7%

800

20

600
10
400
200
0

0
-200
-400

'02.6

'04.12'06.12'08.12'10.12'12.12'14.12'16.12'18.12'20.12-10'22.12 (period)49

Appraisal Value by Property (as of December 31, 2022)

4. Appendix

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

Chang
e
(% pt)

DCF
terminalcap(%)

Direct cap(NCF Cap)
(%)

Chang
e
(% pt)

DCF
discount
rate(%)

Kanematsu Bldg.

14,500-800

Kanematsu Bldg. Annex

3,050

-250

3.3%

- 3.1%-

3.5%-

14,668-168

Rise Arena Bldg.

18,6003.7%- 3.5%

-

3.9%

-

2,381

+668

Yume-ooka Office Tower

7,640

-

3.5%

-0.1

3.2%

-0.1

3.6%

-0.1

12,376+6,223

+210

3.8%

-0.1

3.5%

-0.1

3.9%

-0.1

5,080

JPR Ningyo-cho Bldg.

3,110

-

3.6%

- 3.4%

-

3.7%

-

2,098

+1,011

Olinas Tower

40,100+2,559-1,200

3.4%

-

3.1%

-

3.5%

-

25,616Shin-Kojimachi Bldg.

4,510

-

3.4%

- 3.1%

-

3.5%

-

2,424

+2,085JPR Yokohama Bldg.

14,483

10,600

+200

3.7%

-0.1

3.5%

-0.1

3.8%

-0.1

7,398

+3,201JPR Crest Takebashi Bldg.

3,790

-

3.7%

- 3.5%

-

3.9%

-

3,270

+519

MS Shibaura Bldg.

16,300-3.9%- 3.6%-

4.0%-

10,734+5,565

Omiya Prime East

11,200

+200

3.9%

-0.1

3.7%

-0.1

4.0%

-0.1

5,564

+5,635

Sencity Bldg.

15,400

+300

4.0%

-0.1

3.7%

-0.1

4.1%

-0.1

13,954JPR Ichigaya Bldg.

4,940

-

3.6%

- 3.4%

-

3.8%

-

5,230

-290

+1,445

Tanashi ASTA

11,100

-100

5.2%

-

5.1%

-

5.4%

-

6,900

Oval Court Ohsaki Mark West

5,120

-40

3.8%

- 3.6%

-

4.0%

-

2,699

+4,199+2,420Cupo-la Main Bldg.

3,040

+70

4.7%

-0.1

4.5%

-0.1

4.9%

-0.1

1,551

Shinjuku Square Tower

15,300

+400

3.6%

3.4%

-0.1

3.8%

-0.1

+1,488

12,836+2,463

JPR Musashikosugi Bldg.

5,320

-180

4.7%

-

4.5%

-

4.9%

-

7,093

BYGS Shinjuku Bldg.

19,400-3.5%- 3.3%-

3.7%-1,773-

15,522+3,877

Musashiurawa Shopping Square

4,280

-

4.9%

-

4.8%

-

5.1%

-

3,442

805

+1

4.4%

- 4.2%

-

+837

4.6%

-

560

+244

Kawasaki Dice Bldg.

13,800

-100

4.1%

-

4.0%

-

4.3%

-

12,884

Shinjuku Center Bldg.

22,300-520

3.0%- 2.7%

+915

-

3.1%

-

24,129-1,829FUNDES Ueno

4,130

+130

3.6%

-0.1

3.3%

-0.1

3.7%

-0.2

3,725

Minami Azabu Bldg.

3,420

-

3.6%

+404

- 3.4%

-

3.7%

-

3,778

-358

Niigata Ekinan Center Bldg.

2,170

-

5.4%

-

5.4%

-

5.6%

-

1,516

Shinagawa Canal Bldg.

2,360

-

+653

3.7%

- 3.4%

-

3.8%

-

1,871

+488

JPR Naha Bldg.

2,350

+50

4.8%

-

4.8%

-

5.0%

-

1,639

Rokubancho Bldg.

3,720

+710

-10

3.8%

- 3.5%

-

3.8%

-

2,891

+828

Sompo Japan Sendai Bldg.

4,120

-840

4.6%

-0.1

4.3%

-0.1

4.7%

-0.1

2,235

+1,884

JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.

10,500

-

3.6%

3.4%

-0.1

3.8%

-0.1

8,875

+1,624

Sompo Japan Wakayama Bldg.

1,480

-170

5.9%

-0.1

5.7%

-0.1

6.1%

-0.2

1,299

+180

6,820

-

4.2%

- 4.0%

-

4.4%

-

4,828

+1,991

Tenjin 121 Bldg.

4,190

+140

3.9%

-0.1

3.5%

-0.1

4.0%

-0.1

1,972

+2,217

JPR Sendagaya Bldg.
Ginza Sanwa Bldg.

11,900-3.8%- 3.6%-

4.0%-

14,680-2,780JPR Dojima Bldg.

4,050

+110

3.8%

-0.1

3.6%

-0.1

3.9%

-0.1

2,071

+1,978

3,770

+40

3.0%

- 2.7%

-

3.1%

-

3,669

+100

JPR Nagoya Fushimi Bldg.

3,480

-

4.8%

-

4.4%

-

4.8%

-

3,766

-286

The Otemachi Tower (Land with Leasehold Interest)

54,600-2.5%- 2.4%-

2.6%-

38,388+16,211

Yakuin Business Garden

23,700

+700

3.7%

-0.1

3.5%

-0.1

3.8%

-0.1

9,997

+13,702

Science Plaza - Yonbancho Plaza

3,480

-

3.6%

- 3.2%

-

3.7%

-

2,764

+715

JPR Shinsaibashi Bldg.

4,620

-10

3.7%

-

3.4%

-

3.8%

-

5,261

-641

Shibadaimon Center Bldg.

6,760

+100

3.3%

- 3.0%

-

3.4%

-

4,174

+2,585

JPR Shinsaibashi West

4,900

+180

3.8%

-0.1

3.6%

-0.1

3.9%

-0.1

3,953

+946

Tokyo Square Garden

21,500-2.5%- 2.3%-

2.7%-

18,285+3,214

GRAND FRONT OSAKA(Umekita Plaza and South Building)

12,300

-

3.2%

-

3.0%

-

3.3%

-

11,811+488

JPR Kojimachi Bldg.

6,290

-550

3.0%

- 2.8%

-

3.1%

-

5,835

+454

GRAND FRONT OSAKA(North Building)

10,100

-

3.3%

-

3.1%

-

3.4%

-

9,503

+596

Otemachi Financial City North Tower

13,000-2.3%- 2.0%-

2.4%-

11,486+1,513

Housing Design Center Kobe

7,330

+20

5.4%

-

5.2%

-

5.5%

-

6,050

+1,279

Tokyo Tatemono Higashi Shibuya Bldg.

12,200

+100

3.5%

-0.1

3.6%

-0.1

3.7%

-0.1

11,477+722

JPR Chayamachi Bldg.

8,410

-30

3.3%

-

3.0%

-

3.4%

-

5,980

+2,429JPR Shibuya Tower Records Bldg.

14,800

+600

3.3%

-0.1

3.1%

-0.1

3.4%

-0.1

11,402+3,397JPR Jingumae 432

4,210

-50

2.9%

- 3.0%

-

3.1%

-

4,251

-41

Total

587,035-969

459,781+127,253

Shinjuku Sanchome East Bldg.

2,720

-

3.2%

- 2.7%

-

3.4%

-

2,508

+211

Central Tokyo

313,115-889

264,271+48,843

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

3,400

+40

2.9%

- 2.5%

-

3.0%

-0.1

3,253

+146

Greater Tokyo

180,720-230

128,450+52,269

JPR Ginza Namiki-dori Bldg.

11,100-2.8%- 2.5%-

2.8%-

10,135+964

Other Cities

93,200+150

67,059+26,140FUNDES Suidoubashi

3,440

+50

3.4%

3.2%

-0.1

3.5%

-0.1

3,153

+286

Arca East

6,740

+10

3.6%

- 3.3%

-

3.7%

-

4,169

+2,570JPR Chiba Bldg.

1,910

-

5.2%

- 5.0%

-

5.4%

-

2,151

-241

JPR Yokohama Nihon Odori Bldg.

2,460

+10

4.8%

- 4.6%

-

5.0%

-

2,323

+136

Across Shinkawa Bldg. Annex

DCF

(%)

-0.1

-0.1

-0.1

Chang
Book
e
value
(% pt) (mn yen)

Unrealized
gain orloss(mn yen)Change discountrate(% pt)

Property nameShinyokohama 2nd Center Bldg.

2,630

+30

4.2%

-0.1

4.0%

-0.1

4.3%

-0.1

1,388

+1,241

Kawaguchi Center Bldg.

11,300

+200

4.4%

-0.1

4.1%

-0.1

4.5%

-0.1

7,109

+4,190JPR Ueno East Bldg.

5,840

-

3.5%

- 3.3%

-

3.6%

-

2,862

+2,977

Tachikawa Business Center Bldg.

4,630

-10

3.9%

- 3.6%-

4.0% -

2,857+1,772

Property nameAppraisalvalue(mn yen)Change(mn yen)Chang DCF ChangBook
terminal
e
e
value
cap
(% pt) (%) (% pt) (mn yen)

Unrealized
gain or loss
(mn yen)

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate that serve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.
3. Impact of sold properties is not included in calculation of change in appraisal value from previous period.

50

4. Appendix

Sustainability Initiatives

Commit to sustainability for the long term.
Position sustainability as a top management priority and continue actively implementing sustainability initiatives.
JPR Initiative

TRIM Initiative• Jan. 2021 Determined materiality (JPR/TRIM).

• May. 2021 Included in MSCI Japan ESG
Select Leaders index.
• Aug. 2021 Set target of reducing CO2
emissions to net-zero.
• Dec. 2021 Completed first issuance ofSustainability Bonds.

• Sep. 2013 Achieved "Green Star" status
for the first time in GRESB Real Estate
Assessment.
• Jun. 2018 Acquired CASBEE for Real
Estate Certification for the first time.

• Jan. 2021 Established a business unit
dedicated to sustainability (SustainabilityGroup).
• May 2021 Declared support for TCFD.
• Jul. 2021 Enacted Human Rights Policy.
• Jul. 2021 Enacted Sustainable Procurement
Standards.

• Jan. 2013 Established additional BCP for
epidemics.
• Dec. 2015 Launched Employee
Satisfaction Survey.
• Apr. 2017 Launched employee awards
program.
• May 2017 Enacted Sustainability Policy.

2005

2013

• Aug. 2005 Launched Tenant Satisfaction
Survey.
• Jan. 2006 Formulated brand strategy.
• Oct. 2006 Launched Best PerformanceAward.
• Aug. 2011 Acquired DBJ Green Building
Certification for the first time.

2019

2021

• Apr. 2019 Established Sustainability
Committee.
• May 2019 Became a signatory of PRI(Principles of Responsible Investment).

• Mar. 2019 Began issuing Sustainability
Report.
• Jul. 2019 Completed first issuance ofGreen Bonds.
• Jul. 2020 Participated in CDP Climate
Change Program.
• Dec. 2020 Acquired BELS certification for
the first time.

2022• Jan. 2022 Welcomed outside advisor to Sustainability Committee.
• Mar. 2022 Procured first sustainability loan and green loan.
• Jun. 2022 Reset 2030 target for green certification acquisitionrate.
• Sep. 2022 Acquired ZEB certification for the first time.
• Nov. 2022 Established GHG emission reduction plan andsubmitted to SBTi.
• Jan. 2023 Updated materialities.
• Feb. 2023 Externally recruited special committee member (realestate appraiser) to Investment Committee.
• Feb. 2022 Became signatory to the Principles for Financial Action
for the 21st Century.

51

4. Appendix

JPR’s Commitment to Sustainability (1)Actively implementing sustainability initiatives for diverse stakeholders based on Sustainability Policy

Sustainability policy➢Initiatives on Behalf of Tenants
We will work with integrity and responsibility in responding to tenants,
and endeavor to provide them with new and distinct values as well as
enhancing their satisfaction.

Major Stakeholder engagement• Proactively disclosing information
including ESG-related information• Pursuing dialogue with investors• Maintaining a robust governancesystem• Strengthening the risk
management structure➢Initiatives on Behalf of the Environment
Recognizing the importance of addressing environmental issues, wewill aim to reduce the environmental load by managing the assets wemanage.
• We will promote energy saving and the reduction of greenhouse gas

emissions.
• We will endeavor for the effective use of water resources and workon the "3Rs" (reuse, reduce and recycle) of waste.
• We will strive to proactively disclose information on environmental
issues.

• Developing professionals• Promoting physical and mental
health and work-life balance• Promoting diversity• Developing environments that allows
employees to fulfil their potential➢Initiatives on Behalf of the Employees

Investors(Unitholders)

Tenants/
Local
communities

Employees

Environment/
Business
partners• Acquiring environmental
certifications and improving
evaluations• Reducing CO2 emissions and waste• Implementing energy-saving
construction work
• Thoroughly implementing humanrights due diligence

Active disclosure of sustainability information➢Initiatives on Behalf of Local Communities
We will focus on collaborating with local communities through theassets we manage, in an effort to contribute to enhancing the value ofthe entire area in which such assets are located.

• Improving tenant satisfaction• Creating safe, secure and pleasantworking environments• Building resilience• Contributing to local communities

Periodic issuance of Sustainability ReportCreation of ESG page on JPR website• Disclosure of quantitative information such as environment-related data
and TRIM employee data••

We will respect each of our employees to realize an employee-friendly
workplace, helping them to enhance their skills in their specialties.

➢Initiatives on Behalf of the Society
We will abide by laws and regulations as well as the rules of society,and will conduct business operations with a focus on transparency andobjectivity while holding on to our high moral standards.

52

4. Appendix

JPR’s Commitment to Sustainability (2)Reviewing materialities (material issues) based on changes in the external environment and other factors
Implementing sustainability measures to solve issues
Materialities and Policies
Creating a rewarding workplace environment

Materialities of JPR and TRIM and strategic targets
Materialities and Policies
Action on climate change
Promoting acquisition of environmental certification
Strategies• Improving green certification acquisition rate
• Improving environmental ratings

Target2030: Certification acquisition rate of 80% or more (4star/5-star or higher)

Reducing GHG emissions
Strategies

Target• Achieving reductions by lowering emissions coefficients• Achieving reductions with energy saving renovations• Achieving reductions by introducing renewable energy• Reducing waste and improving recycling rate2030: Achieving 46.2％ reduction in GHG emissions(compared to the 2019 level)2050: Achieving net zero

SDGs

Strengthening human resources through training and selfdevelopment support
Strategies• Implementing water-saving construction work

Target2030: Achieving 10% reduction in water use per floorarea (compared with the 2017 level)• Fostering professionals who support corporate growth

Building an efficient business structure
Strategies• Improvement of business efficiency and process

Maintaining and improving physical and mental healthStrategies• Realization of physical, mental health and work-lifebalanceCreating a rewarding workplace environment
Strategies• Providing an environment where each person can play
an active role

Promoting diversity & inclusion
Strategies• Promoting the active participation of diverse humanresources
Strengthening corporate governance

Efficient use of water resources
Strategies

Implementation of transparent management through active IR
Strategies• Obtaining industry-leading ESG valuation• Active dialogue with investors

Strengthening climate change risk management

Improving overall strength of Sustainability Promotion
Framework

Strategies

Strategies• Building industry-leading climate change risk response
capabilities

Working with tenants to address climate change
Strategies• Expansion of green lease agreement• Obtaining industry-leading ESG valuation

Respect for Human Rights
Strategies• Raising awareness of human right policies both insideand outside the company

Improving tenant satisfaction with safety, security and comfort

Enhancing a strong corporate governanceImproving satisfaction by providing tangible and intangible
services (safety, security and comfort)

Strategies

Strategies• Improving overall tenant satisfaction (safety, security
and comfort)

SDGs• Maintaining a strong corporate governance

Strengthening risk management
Strategies• Building industry-leading management capabilities

53

4. Appendix

JPR’s Commitment to Sustainability (3)Declaration of Support for the TCFD Recommendations
Promoting sustainable operations based on recognition of the impact of climate change

Support for TCFD recommendations and scenario analysis◼

In May 2021, TRIM announced its support for the TCFD (Task Forceon Climate-related Financial Disclosures), which was established by
Financial Stability Board (FSB). Based on the four core pillars(governance, strategy, risk management, and metrics and targets) of
the TCFD recommendations, TRIM conducted an analysis of climatechange action risks and opportunities.

(2) Implementation of scenario analysis

Natural andmeteorologicalenvironment
Government(1) Identifying risks and opportunities
Type of risk/
opportunity
Transition risk

Physical risks

Opportunities

Risk that was identified
Increase in operation costs resulting fromthe introduction of a carbon tax
Cost increase resulting from the increase ofenergy prices
Loss of tenants due to a delay in taking
green building measures
Withdrawal of investors due to a delay intaking green building measures
Increase in energy consumption attributed
to chronic temperature increase
Increase in repair costs associated withwater damage risk
Increase in rents for green buildings
Cost reduction effect of energy
conservation and use of renewable energy

TenantTime span

Level ofimpact1.5/2℃

Level ofimpact4℃

Medium to long

High

High

Medium to long

Low

MiddleShort, medium,and long

High

Low

Medium to long

High

Low

Medium to long

MiddleMiddle

High

High

High

Low

Low

Low

Short, medium,and long
Medium to long
Medium to long

Investors andlenders
Investment
corporations

1.5℃/2℃ scenarios

4°C scenario(A scenario in which laws andregulations are tightened tocontrol climate change)(A scenario in which natural disasters
grow serious because of delays inaddressing climate change)

Impact is less than under the 4°C
scenario

Increase in rain and cloudbursts
Rising sea levels
Increase in tropical days (high is 30°C or
higher), decrease in ice days (low is 0 °C or
lower)
Carbon tax introduced
Improvement of regulations for disaster
Improvement of regulations for energy control measures (disaster control andconservation
mitigation)
Carbon tax not introduced
Focus on environmental performance
Focus on disaster response capacity andsafetyIncrease in sustainable investments
Focus on ability to respond to physical risks
and loans
Increase in importance ofenvironmental certification
Increase in responses to environment- Measures against meteorological disasters,
related laws and regulations
responses for facilities
Demand for properties with a strong
High demand for resilient properties
environmental performance(3) Risk management
i. Risk management
Climate change risks are integrated with risks related to operations
and management. They are monitored and managed through multiple
verification systems.
ii. Risk management process
TRIM monitors climate change risks and other risks twice a year, andthe Risk Management Committee deliberated these risks.

TRIM addresses climate change risks by classifying them into transition risks andphysical risks, and is also actively focusing on capturing new growth opportunities.

54

4. Appendix

Unitholders (as of December 31, 2022)■ Top unitholders■ 所有者別投資口数 （総数997,178口）
Securities

Individuals

Companies

33,822

28,822

(3%)

Rank

(3%)

Custody Bank of Japan, Ltd. (Trust
Account)

298,847

30.0

2

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

160,045

16.0

3

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

43,607

4.4

4Tokyo Tatemono Co., Ltd.

29,3002.9

5Kawasaki Gakuen

25,0002.5(10,435 unitholders in total)

6

Meiji Yasuda Life Insurance Company

24,000

2.4

Securities companies
20
(0%)

7

STATE STREET BANK WEST CLIENTTREATY 505234

13,725

1.4

8SSBTC CLIENT OMNIBUS ACCOUNT

12,461

1.2

9

STATE STREET BANK AND TRUSTCOMPANY 505103

12,143

1.2

10

The Shinkumi Federation Bank

11,0891.1

630,217

63.2

Financial(18%)

institutions
672,421(67%)

Other domestic
corporations
83,108(8%)

Number of
Share (%)
Owned Units

1

Foreign Investors
179,005

Name

Of which,
investment Trusts
incorporating JPR units
372,362(37%)■ Number of unitholders by unitholder type
Foreign investors281(3%)
Other domestic corporation
211
(2%)

Financial institutions
189(2%)
Individuals
9,734
(93%)

Total

55

4. Appendix

Investment Unit Price and Distribution per Unit

■ Changes in unit price
Nikkei stock average (indexation)
日経平均株価(指数化)

JPR

(yen)

600,000

400,000

200,000

0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6

'21/6

'22/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6

'21/6

'22/6

(year/
month)■ Changes in JPR dividend yield(%)

10y
JGB yield
10年国債利回り

JPR

10.0
8.0

6.0
4.0
2.0
0.0
-2.0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

(year/
month)■ Changes in cash distribution per unit
6,912 6,873
5,738

6,081

6,671 6,370 6,411 6,509 6,873 6,996 6,671

7,122 7,092

6,933 6,770
5,680 5,611 5,876

6,430

6,093 6,031 6,006

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

22

25

6,756 7,048

7,213 7,223 7,245 7,326 7,380 7,493

7,595 7,750 7,657 7,550 7,800 7,750

31

37

3,731
2,545

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

23

24

26

27

28

29

30

32

33

34

35

36

38

39

40

41

42

(period)

1. Prepared by TRIM based on Refinitiv data.
2. Nikkei stock average (indexation) in Changes in Unit Price is calculated on the basis that June 14, 2002 = 200,000 yen.
3. JPR dividend yield is calculated by dividing the sum of dividend for the last two periods by daily unit price.

56

4. Appendix

Asset Manager■ Summary of asset manager■ Sponsors(as of February 1, 2023)(as of February 1, 2023)

Name

Tokyo Realty Investment Management, Inc. (TRIM)

Address

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

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO

Yoshihiro Jozaki

Directors

8 (4 full-time and 4 part-time)

Number of Officers

48■ Organization chartName(as of February 1, 2023)

No. ofShareholding seconded
staff fromratio
sponsors

Tokyo Tatemono Co., Ltd.

75%

10

Yasuda Real Estate

10%－

Taisei Corporation

10%－

Meiji Yasuda Life Insurance Company

5%－■ Sponsors support

Shareholder’s Meeting
Auditors

No.

Summary of sponsors support

1

Personnel support through dispatching personnel to TRIM
and other measures

2

Provision of know-how on real estate management ingeneral, including tenant leasing and technical support

3

Supply of properties and provision on information onproperty acquisition

4

Fund procurement support including funding through debt
finance

Board of Directors
President and CEO
Investment Committee

Compliance Committee
Risk Management Committee
Compliance OfficeSustainability Committee

Investment
Management
Division I
Investment
Management
Department I
Investment
Management
Department II
Investment
Management
Department III

Investment
Management
Division II
InvestManagement
Department

Financial Management
Division
Investment
Strategy
Department

Asset Engineering
Department

Investment
Research
Department

Sustainability
Group

Finance & IR
Department

FinancialGroup

Corporate Business
Management
Department

Investor
Relations
Group

57

4. Appendix

Large supply of offices■ Supply, absorption and vacancy rates in Tokyo’s 23 wards
Supply (10 thousand sqm)
Absorption(10 thousand sqm)
Vacancy rate (%)■ Breakdown of office building supply by area and by size
(forecast)(By area)(year)

Average new supply
in 2022-2026: 88
Average new supply
in 1986-2021: 105

2022

75

25

2023

75

25

68

2024

179
161

32

2025

78

22

2026

75

25

141

3 central wards

128

(%)

Other 20 wards

119

119

(By size)
97

96
85 86

85

74
69

(year)

71

Large supply in 2023 will be mostly officebuildings with GFA of 100,000 sqm or more
46

2022

61

54

5.6
48

79

2023
3.2
2.6

2024

1.9
1.8

2017

2018

2019

25

75

-2

2025

2016

21

4.0

2020

2021

2022

2023

2024

2025

2026

(year)

2026

76

24
94

100,000 sqm or more

6
Less than 100,000 sqm(%)

1. Source: Prepared by TRIM based on the 2022 Survey of Large Office Building Market Trends in Tokyo’s 23 Wards published on May 26, 2022.
2. Absorption refers to newly occupied space (Vacant space as of end of previous period + New supply － Vacant space as of end of current period).

58

4. Appendix

Office Property Leasing Market■ Changes in the supply and the vacancy rate of Tokyo CBDs
(tsubo)Supply(%)

Vacancy rate

14.5

600,000■ Changes in the average rent of Tokyo CBDs
(yen/tsubo)

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,00012.5

500,000

10.5
400,000

35,0008.5

300,000

6.5

200,000

25,0004.5

100,000

2.5

0

0.5

15,0005,000'10.12(year)'12.12'14.12'16.12'18.12'20.12'22.12 (year/

month)

1. Prepared by TRIM based on the office market information published by Miki Shoji Co., Ltd.

■ Monthly vacancy rates in Tokyo CBDs

■ Changes in the vacancy rate of Tokyo CBDs
(%)

(%)

9.0

Chiyoda Ward
Minato Ward
Shibuya Ward

Chuo Ward
Shinjuku Ward
Tokyo's Central 5 Wards

Class A Bldg.

Class B Bldg.

Class C Bldg.

12.0
10.0
8.0

7.0

6.0
5.0

4.0
2.0

3.0

0.0
'10.121.0'22.01 '22.02

'22.3

'22.4

'22.5

'22.6

'22.7

'22.8

1. Source: Prepared by TRIM based on data published by Miki Shoji Co., Ltd.

'22.9

'22.10 '22.11 '22.12 (year/

month)'12.12'14.12'16.12'18.12'20.12'22.12 (year/

month)

1. Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and NLI Research Institute.
2. Please refer to glossary for definition of building classes.

59

4. Appendix

For-Sale Property Market■ Expected cap rate of office (major cities)■ Expected cap rate of retail properties andeconomy hotel for lodging

Tokyo (Otemachi, Marunouchi)

Nagoya (around Nagoya Sta.)

Retail property (Ginza)

Retail property (Osaka)

Osaka (Midosuji)

Osaka (Umeda)

Economy hotel for lodging (Tokyo)

Economy hotel for lodging (Osaka)

Fukuoka (Tenjin)
(%)

(%)

7.5

8.0

7.0
6.5

6.0
5.5
5.0
4.5
4.0

3.5

3.0

2.0

2.5
(year/
month)(year/
month)

1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute.

60

Portfolio Map

4. Appendix

Chuo, Minato, Shinjuku, Shinagawa■Central Tokyo Chiyoda,
and Shibuya Wards

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

SaitamaMusashiurawa
Prefecture

A-5

A-9
A-24
A-4

A-23

B-6

Chiyoda WardTokyo

A-1
A-2

A-26

B-8
A-13

Tachikawa

A-5

Harajuku

B-7

B-1

A-21

B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

A-6

Minato Ward

A-1

Kinshicho

B-14

Chiba

B-4

KawasakiB-5

Hamamatsucho

A-15

B-1

B-2

A-25

A-29

B-11

Musashikosugi

Chuo Ward

ShibuyaB-7

ShinagawaShinbashi

A-18

Chiba
Prefecture

B-3

Kawaguchi

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

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

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

Kanagawa Shin-Yokohama
Prefecture
Yokohama
B-12
B-3

TamachiB-10

Kamioka

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 Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

A-6■Other Cities
GotandaShinagawa
A-16

A-10

OhsakiShinagawa Ward
A-1

Kanematsu Bldg.

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

Shibadaimon Center Bldg.

A-2

Kanematsu Bldg. Annex

A-14

Shinjuku Center Bldg.

A-25

A-3

JPR Ningyo-cho Bldg.

A-15

Minami Azabu Bldg.

A-26

Tokyo Square Garden

A-4

Shin-Kojimachi Bldg.

A-16

Shinagawa Canal Bldg.

A-27

JPR Kojimachi Bldg.

A-28

Otemachi Financial City North Tower

A-5

JPR Crest Takebashi Bldg.

A-29

Tokyo Tatemono Higashi Shibuya Bldg.

A-6

MS Shibaura Bldg.

A-18

JPR Harajuku Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-9

JPR Ichigaya Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-3

JPR Jingumae 432

A-10

Oval Court Ohsaki Mark West

A-21

JPR Sendagaya Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-11

Shinjuku Square Tower

A-22

Ginza Sanwa Bldg.

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-12

BYGS Shinjuku Bldg.

A-23

The Otemachi Tower

A-6

JPR Ginza Namiki-dori Bldg.

A-7

FUNDES Suidobashi

A-17

Rokubancho Bldg.

(Land with Leasehold Interest)

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi West

C-23

GRAND FRONT OSAKA (Umekita Plaza and South Bldg.)

C-24

GRAND FRONT OSAKA (North Bldg.)

C-5

JPR Chayamachi Bldg.
Sendai
NiigataC-14

Tenjin 121 Bldg.

C-20

Yakuin Business Garden
Kobe
Fukuoka

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

61

4. Appendix

Portfolio List (Central Tokyo)

A-1 Kanematsu Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

A-2 Kanematsu Bldg. Annex
16,276 million yen
14,995 ㎡
100.0％
Kyobashi,Chuo-ku
2001.12
1993.2A-5 JPR Crest Takebashi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Date
Completed

4,790 ㎡
89.2％
Kandanishikicho,
Chiyoda-ku
2002.6
1999.9Acquisition
Date
Completed

4,351 ㎡
100.0％
Kyobashi,Chuo-ku
2001.12
1993.2

11,200 million yen

Acquisition
Date
Completed2003.378,796 ㎡ (entire
redevelopment area)

91.4％
Nishishinjuku,
Shinjuku-ku‘04.7/’08.9/‘15.3/’15.10
1994.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

31,020 ㎡
100.0％
MinatoWard

1988.2

4,570 ㎡
100.0％
Minamiazabu,
Minato-ku
2008.7
1992.6

Acquisition
Date
Completed

A-4 Shin-Kojimachi Bldg.
2,100 million yen
4,117 ㎡
100.0％
Chuo Ward
Nihonbashiningyocho, Chuo-ku
2001.11
1989.12AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

25,733 ㎡
98.4％
Shinjuku,
Shinjuku-ku‘04.11/’05.4/‘10.7
1985.4

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

5,888 ㎡
84.0％
Kudanminami,
Chiyoda-ku
2004.5
1989.3710 million yen
5,535 ㎡
100.0％
Shinkawa,
Chuo-ku
2004.111994.6

A-17 Rokubancho Building

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,041 million yen

Acquisition
Date
Completed‘08.12/’19.3

5,216 ㎡
100.0％
Konan, Minato-ku

2008.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,420 million yen
5,152 ㎡
100.0％
Kojimachi,
Chiyoda-ku‘01.11/’02.11/’04.11
1984.10

A-10 Oval Court Ohsaki Mark West5,100 million yen

A-13 Across Shinkawa Bldg. Annex
15,121 million yen

A-16 Shinagawa Canal Bldg.
3,760 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

A-9 JPR Ichigaya Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

A-12 BYGS Shinjuku Bldg.
14,966 million yen

A-15 Minami Azabu Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

Acquisition
Date
Completed

A-3 JPR Ningyo-cho Bldg.
2,874 million yen

A-6 MS Shibaura Bldg.
4,000 million yen

A-11 Shinjuku Square Tower
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed3,500 million yen
28,575 ㎡
100.0％
Higashigotanda,
Shinagawa-ku
2004.6
2001.6

A-14 Shinjuku Center Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

24,320 million yen
176,607 ㎡
94.8％
Nishishinjuku,
Shinjuku-ku‘08.3/’22.12
1979.10

A-18 JPR Harajuku Bldg.
2,800 million yen
4,205 ㎡
100.0％
Rokubancho,
Chiyoda-ku
2009.12
1991.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

8,400 million yen
6,466 ㎡
91.7％
Jingumae,
Shibuya-ku
2009.12
1989.3

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

62

4. Appendix

Portfolio List (Central Tokyo)

A-20 JPR Nihonbashi-horidome Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

5,100 million yen
7,190 ㎡
100.0％
Nihonbashihorido
mecho, Chuo-ku
2010.3
2002.6

A-24 Science Plaza - Yonbancho Plaza
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,660 million yen
24,560 ㎡
100.0％
Yonbancho,
Chiyoda-ku
2013.12
1995.2

A-28 Otemachi Financial City North Tower
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

11,400 million yen
239,769 ㎡(including South Tower)

99.9％
Otemachi,Chiyoda-ku
2020.122012.10A-3 JPR Jingumae 432
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
CompletedA-21 JPR Sendagaya Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

7,683 ㎡
100.0％
Sendagaya,
Shibuya-ku
2010.52009.5

A-25 Shibadaimon Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

4,213 million yen
11,419 ㎡
100.0％
Shibadaimon,
Minato-ku‘13.12/’14.7
1993.7

1,066 ㎡
100.0％
Jingumae,
Shibuya-ku
2006.32006.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,400 million yen

Acquisition
Date
Completed2011.88,851 ㎡
100.0％
Ginza, Chuo-ku

1982.10

Aｰ26 Tokyo Square Garden
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed112,645 ㎡
95.5％
Kyobashi, Chuoku‘17.2/’17.4
2013.2A-30 Ochanomizu Sola City
(Planned acquisition date: Apr. 2023)

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

Acquisition
Date
Completed

11,300 million yen
15,662 ㎡
100.0％
Higashi,
Shibuya-ku
2022.1
1993.5AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,740 million yen
24,617 ㎡
100.0％
Shinjuku,
Shinjuku-ku‘07.3/’08.4
2007.1

Acquisition
Date
Completed

6,490 million yen
98,897 ㎡―
Kandasurugadai,
Chiyoda-ku
2023.4 (Forecast)2013.2A-5 Yurakucho Ekimae Building(Yurakucho Itocia)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Price
Site area

36,000 million yen

Period-end
occupancy rate
Address

100.0％

Acquisition
Date
Completed

11,034 ㎡

Otemachi,Chiyoda-ku
2012.32014.4 (Reference)

A-27 JPR Kojimachi Bldg.
18,400 million yen

A-29 Tokyo Tatemono Higashi-Shibuya Bldg.

A-4 Shinjuku Sanchome East Bldg.
4,275 million yen

A-23 The Otemachi Tower(Land with Leasehold Interest)

A-22 Ginza Sanwa Bldg.
15,050 million yen

3,400 million yen
71,957 ㎡
100.0％
Yurakucho,
Chiyoda-ku
2008.82007.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

5,750 million yen
4,438 ㎡
100.0％
Kojimachi,
Chiyoda-ku
2019.6
1999.2A-1 JPR Shibuya Tower Records Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed12,000 million yen
8,449 ㎡
100.0％
Jinnan,Shibuya-ku
2003.6
1992.2A-6 JPR Ginza Namiki-dori Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,100 million yen

Acquisition
Date
Completed2016.12

1,821 ㎡
100.0％
Ginza, Chuo-ku

2008.6

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

63

4. Appendix

Portfolio List (Central Tokyo and Greater Tokyo)

A-7 FUNDES Suidobashi
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-1 Arca East
3,250 million yen
1,477 ㎡
87.2％
Kandamisakicho,
Chiyoda-ku
2016.122015.7B-5 Shinyokohama 2nd Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

1,490 million yen
7,781 ㎡
100.0％
Yokohama,
Kanagawa‘02.9/’13.3
1991.8B-9 Rise Arena Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-2 JPR Chiba Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

5,880 million yen

Acquisition
Date
Completed2001.1134,281 ㎡
100.0％
Kinshi, Sumida-ku

1997.3B-6 Kawaguchi Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

91,280 ㎡ (including
residential block)100.0％
Higashiikebukuro,
Toshima-ku‘07.3/’21.10
2007.1

B-13 JPR Omiya Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

28,420 ㎡
100.0％
Kawaguchi,
Saitama2004.2
1994.2

6,090 million yen

Acquisition
Date
Completed2013.39,203 ㎡
70.6％
Saitama, Saitama

2009.2Acquisition
Date
Completed2001.12

9,072 ㎡
98.5％
Chiba, Chiba

1991.1

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

185,974 ㎡
99.1％
Yokohama,
Kanagawa
2007.7
1997.38,490 ㎡
100.0％
Matsugaya,
Taito-ku
2004.3
1992.10

13,870 million yen

Period-end
occupancy rate
Address

94.0％

Acquisition
Date
Completed2020.3

158,663 ㎡ (entire
redevelopment area)

Chiba, Chiba

31,300 million yen

Period-end
occupancy rate
Address89.6％

Acquisition
Date
Completed2009.6257,842 ㎡(including retail andresidential blocks)

Taihei, Sumida-ku

9,146 ㎡
100.0％
Yokohama,
Kanagawa
2001.11
1989.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,188 million yen

Acquisition
Date
Completed‘05.9/’07.2

14,706 ㎡
93.2％
Tachikawa, Tokyo

1994.12AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed7,000 million yen
8,772 ㎡
100.0％
Yokohama,
Kanagawa
2010.12
1981.5

2006.2B-3 Cupo-la Main Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,200 million yen

Acquisition
Date
Completed2001.111993.4

Acquisition
Date
Completed

2,927 million yen

B-12 JPR Yokohama Bldg.

AcquisitionPrice
Total FloorSpace

B-1 Tanashi ASTA

AcquisitionPrice
Total Floor
Space

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-8 Tachikawa Business Center Bldg.
3,250 million yen

B-11 Olinas Tower
6,510 million yen

B-14 Sencity Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,350 million yen

B-7 JPR Ueno East Bldg.
8,100 million yen

B-10 Yume-ooka Office Tower
13,131 million yen

B-3 JPR Yokohama Nihon Odori Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

80,675 ㎡
100.0％
Nishitokyo, Tokyo

1995.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,100 million yen
48,321 ㎡
100.0％
Kawaguchi,
Saitama2006.32006.1

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

64

4. Appendix

Portfolio List (Greater Tokyo and Other Cities)

B-4 JPR Musashikosugi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-5 Musashiurawa Shopping Square
7,254 million yen
18,394 ㎡
100.0％
Kawasaki,Kanagawa
2006.91983.3C-1 Niigata Ekinan Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,140 million yen
19,950 ㎡
100.0％
Niigata, Niigata
2001.111996.3C-14 Tenjin 121 Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

4,335 million yen

Acquisition
Date
Completed2007.328,930 ㎡
100.0％
Saitama, Saitama

2005.10C-9 JPR Naha Bldg.

2,810 million yen

Acquisition
Date
Completed2002.68,690 ㎡
82.3％
Fukuoka, Fukuoka

2000.7

C-21 C-21 JPR Shinsaibashi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

5,430 million yen

Acquisition
Date
Completed2005.55,303 ㎡
100.0％
Osaka, Osaka

2003.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-7 FUNDES Ueno
15,080 million yen
36,902 ㎡
98.4％
Kawasaki,Kanagawa
2007.4
2003.8

C-12 Sompo Japan Sendai Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

1,560 million yen

Acquisition
Date
Completed2001.115,780 ㎡
100.0％
Naha, Okinawa

1991.10

C-17 JPR Dojima Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-6 Kawasaki Dice Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,140 million yen

Acquisition
Date
Completed2004.1

5,696 ㎡
100.0％
Osaka, Osaka

1993.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

10,783 ㎡
99.9％
Sendai, Miyagi
2002.6
1997.12AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,750 million yen

Acquisition
Date
Completed2020.1

7,738 ㎡
95.9％
Osaka, Osaka

10,201 ㎡
99.8％
Nagoya, Aichi
2005.3
1991.3

1986.9AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

11,800 million yen

Acquisition
Date
Completed2021.12(Extended 2005.1)

Acquisition
Date
Completed2019.62,235 ㎡
100.0％
Ueno, Taito-ku

2017.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

1,670 million yen
6,715 ㎡
99.8％
Wakayama,
Wakayama
2002.6
1996.7

C-20 Yakuin Business Garden

4,137 million yen

C-23 GRAND FRONT OSAKA(Umekita Plaza and South Building)C-22 JPR Shinsaibashi West3,800 million yen

C-13 Sompo Japan Wakayama Bldg.

3,150 million yen

C-19 JPR Nagoya Fushimi Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,226 ㎡ (Umekita Plaza)
181,371 ㎡ (South Bldg.)
91.4％
Osaka, Osaka‘13.2 (Umekita Plaza)’13.3 (South Bldg.)

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,996 million yen

Acquisition
Date
Completed2012.822,286 ㎡
99.9％
Fukuoka, Fukuoka

2009.1

C-24 GRAND FRONT OSAKA (North
Building)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

9,500 million yen

Acquisition
Date
Completed2021.12290,030 ㎡
98.5％
Osaka, Osaka

2013.2

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

65

4. Appendix

Portfolio List (Other Cities)

C-25 Osaka Dojima Bldg.
(Acquisition date: Jan. 11, 2023)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,460 million yen

Acquisition
Date
Completed2023.1

4,977㎡
ーOsaka, Osaka

1996.7C-4 Housing Design Center Kobe
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

7,220 million yen

Acquisition
Date
Completed2005.933,877㎡
100.0％
Kobe, Hyogo

1994.6C-6 FUNDES Tenjin Nishi Dori(Acquisition date: Jan 11, 2023)

C-5 JPR Chayamachi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

6,000 million yen

Acquisition
Date
Completed2006.83,219㎡
100.0％
Osaka, Osaka

1994.6

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,310 million yen

Acquisition
Date
Completed2023.1

1,135㎡
ーFukuoka, Fukuoka

2022.3

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

664. Appendix

IR Mail Delivery Service

Introduction to the JPR Website https://www.jpr-reit.co.jp/ 8955

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

Property Information• [Occupancy Rate] Data for each
property (Excel) updated monthly• [Property Data Library]
Property Data Book, Property Appraisal
Summary, Historical Data
• [Portfolio data]
Asset class, Area, Ratio of Properties by
Property Acquisition Channel, Ratio of
Tenant Occupancy

Overview of Property / Access Map• [Property Overview]
Basic Information, Management Status,
Major Characteristics• [Access Map]
Search function for routes from thenearest stations (applicable for mobile
phones)• Other than these, latest topics regarding
management status are posted at any
time

Information of ESG• ESG of JPR• Initiatives on behalf of theenvironment• Initiatives for Society• Corporate Governance Initiatives• Sustainability report• GRI Standards Content Index
Extensive ESG related information
Regularly announce updated data67

4. Appendix

Term

Glossary
Meaning

Acquisition Price

The sales price (not including acquisition costs, fixed property taxes and consumption taxes)
stated in the sales agreement concerning acquisition of a property owned by JPR (hereinafterreferred to as the “owned properties”) or a property to be acquired by JPR.

Asset size

The asset size refers to the total amount of the acquisition prices of the owned properties

Investment ratio

The investment ratio refers to the ratio of the acquisition price of relevant properties owned by
JPR to the total acquisition price of its portfolio.

Occupancy rate
based on concluded
contracts

Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded
contracts. When occupancy rate for each fiscal period is indicated, it represents the averageoccupancy rate as of the end of each month that belongs to the relevant fiscal period (period
average of occupancy rate at end of month). Furthermore, it may be described as “averageoccupancy rate” in order to distinguish it from “period-end occupancy rate.

Occupancy rate
based on generated
rents(Total leased space – total leased space during rent-free periods) / total leasable space

Average unit rent

Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease
contracts with tenants; for certain properties, the figure includes common charges, etc.
received by master lessees without being recorded as JPR’s revenue

Term

Meaning
The definitions of building classes used in “Ratio by grade/asset class“ on page 11 is as follows,which TRIM sets.
Target area: Tokyo’s 23 ward
Class S: Comprehensive consideration from Bldg. scale, location, Bldg. age, etc. of the following
Class AClass A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or moreClass B: Floor size of 200 tsubo or moreClass C: Floor size of 100 tsubo or more but less than 200 tsubo

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and“Changes in the vacancy rate of Tokyo CBDs” on page 59 are as follows, which Sanko Estate Co.,
Ltd. and NLI Research Institute sets.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage
of office buildings in surrounding wards (Gotanda/Osaki, Kita-shinagawa/Higashi-shinagawa,Yushima/Hongo/Koraku, Meguro-ku)
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age less than
15 years
Class B: Floor size of 200 tsubo or more, not applicable of A class building (including of building
except for A class of age more over 15 years)
Class C: Floor size of 100 tsubo or more but less than 200 tsubo

Properties acquired
using sponsor
pipelines

Properties acquired using sponsor pipelines refer to properties acquired from sponsors, etc. andproperties acquired based on information provided by sponsors. Sponsors, etc. represent thesponsor companies of JPR, their affiliated companies and special purpose companies (SPCs) inwhich the sponsors have made equity investment.

Ratio ofincrease/decrease
on rent revision

Rate of rent revision indicates the sum total of monthly rent after revision minus monthly rent
before revision upon contract renewal with rent revision (including neither upward or down
revision of rent) in each fiscal period, divided by monthly rent before revision.

Rate of tenant
replacement

Rate of tenant replacement indicates the sum total of monthly rent after tenant replacement
minus monthly rent before tenant replacement in each fiscal period, divided by monthly rent
before tenant replacement.

NOI yield

Rent revision

Rent revision indicates the sum total of monthly rent after revision minus monthly rent before
revision upon contract renewal with rent revision in each fiscal period. Upward revision indicates
only the amount of the upward revision and downward revision indicates only the amount of
the downward revision.

(Rental revenue - expenses related to rent business + depreciation) / acquisition price (bookvalue or market value, depending on the case) NOI yield is calculated using the above formula,by dividing acquisition price (book value or market value, depending on the case) in the formulaby 365 days and multiplying it by the number of business days of the relevant fiscal period. The
same also applies to "After depreciation yield" below.
(Rental revenue - real estate - expenses related to rent business) / book value

Tenant replacement

Tenant replacement indicates the sum total of monthly rent after tenant replacement minus
monthly rent before tenant replacement in each fiscal period. Upward revision (tenant
replacement) indicates only the increase in rent upon tenant replacement and downward
revision (tenant replacement) indicates only the decrease in rent upon tenant replacement.

After-depreciation
yield
Number of tenants

Rent gap

The rent gap for a month refers to, in lease contracts due for renewal during the four periods
from the period ending in December 2022, the ratio obtained by subtracting the total difference
between the lower limit of rent in the market range and the existing rent that is lower than thelower limit of rent in the market range from the total difference between the upper limit of rentin the market range and the existing rent (excluding new contracts, etc.) that exceeds theupper limit of rent in the market range and dividing that monthly difference by the monthly rent
for the month in question.

The number of tenants counts the parties with whom JPR has concluded lease contracts for thebuilding floors. When a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted inplural.

Ratio of long-term,
fixed interest ratedebts

Long-term interest-bearing debts with fixed interests / total interest-bearing debts

Average maturity

Weighted average calculated by dividing the remaining periods to the repayment dates andredemption dates of borrowings and investment corporation bonds at the end of each fiscal
period by the balance of respective borrowings and investment corporation bonds at the end ofeach fiscal period For borrowings with scheduled repayment in installments, the weighted
average of the remaining period to the scheduled repayment dates of each installment payment
in accordance with the relevant repayment amount

Average debt cost

(Sum total of interest expenses, interest expenses for investment corporation bonds, borrowingrelated expenses (excluding expenses related to early repayment of debts and expenses related
to the commitment line agreement), amortization of investment corporation bond issuance costs
and investment corporation bond administration expenses incurred in each fiscal period), divided
by the business days of the relevant fiscal period or the said period, and annualized bymultiplying by 365 days / average balance of debts and investment corporation bonds for eachfiscal period or for the said period

LTVInterest bearing debts / total assets at end of period (based on book value)
There are other methods for calculating LTV.LTV (based on valuation) = Interest bearing debt /(total assets at end of period + unrealized gains or losses from valuation) (based on market
value)
Unrealized gains or losses from valuation refer to the difference between appraisal value andbook value.
Based on book value unless otherwise specified.

Tokyo/ Other cities“Tokyo” defined by JPR as its investment area collectively refers to “Central Tokyo” and“Greater Tokyo” as defined below, and “Other Cities” refers to other regions.
・ Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
・ Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama
Prefectures

Ratio of unrealized
gains or losses(Appraisal value – book value) / book value

Cap rate

Capitalization rate by the direct capitalization method Direct capitalization method is one of themethods to calculate the value estimated by income approach (a method to estimate the valueof the target property by calculating the sum total of present value of the net operating income
which the target property is expected to generate in the future), and capitalizes the net
operating income of a certain period by using the capitalization rate.

68

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking statements
are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty Investment Management, Inc.
(TRIM) based on information currently available, and are therefore not guarantees of future performance. Actual
results may differ materially from those in the forward-looking statements as a result of various factors including
known or unknown risks and uncertainties.
• This material is solely for the purpose of providing information, and is not intended for the purpose of offering or
soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.

• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.

69