Translation
Japan Prime Realty Investment Corporation
Financial Report for the 37th Fiscal Period Results (January 1, 2020 – June 30, 2020)
August 17, 2020

REIT Securities Issuer:
Japan Prime Realty Investment Corporation
Listing:
Tokyo Stock Exchange
Securities Code:
8955
URL:
http://www.jpr-reit.co.jp/
Representative:
Yoshihiro Jozaki, Executive Officer
Asset Management Company: Tokyo Realty Investment Management, Inc.
Representative:
Yoshihiro Jozaki, President and Chief Executive Officer
Contact:
Yoshinaga Nomura, Director and Chief Financial Officer TEL: +81-3-3231-1051
Scheduled date of submission of securities report:
September 28, 2020
Scheduled date of commencement of distribution payout:
September 10, 2020
Preparation of supplementary explanatory materials on financial results: Yes / No
Holding of briefing session on financial results:
Yes / No (for analysts and institutional investors)
1. Financial Results for the 37th Fiscal Period (January 1, 2020 – June 30, 2020)[Amounts are rounded down to the nearest million yen, except for per unit figures.][% figures represent the increase (decrease) compared with the previous fiscal period](1) Operating Results
For the six months ended

June 30, 2020
December 31, 2019

Operating Revenues
million yen%
16,3632.2
16,005(0.6)
Net Income per Unit
(EPU)
yen
7,690
7,491

For the six months ended

June 30, 2020
December 31, 2019

Operating Income
million yen
%
8,013
4.3
7,684
(3.4)

Net Income / Net Assets

Ordinary Income
million yen
%
7,277
5.2
6,915
(4.2)

Net Income
million yen
%
7,276
5.2
6,914
(4.2)

Ordinary Income /Total Assets

Ordinary Income /Operating Revenues
%
44.5
43.2

%
2.9
2.9

%
1.6
1.5

(2) Distributions
Distribution
per Unit(DPU)[excluding
exceeding profit
distribution
amount]Distribution
AmountExceedingProfitDistribution
per Unit

ExceedingProfitDistribution
AmountDividend
Payout Ratio

Distribution /Net Assets

For the six months ended

yenmillion yen
yenmillion yen
%
%
–
7,595
7,277
–
100.0
2.9
June 30, 2020
–
7,493
6,916
–
100.0
2.9
December 31, 2019
(Note 1) Dividend payout ratio is rounded down to the first decimal place.
(Note 2) Dividend payout ratio for the six months ended June 30, 2020 is calculated by using the following formula, as JPR issued
new investment units in the fiscal period:
Dividend payout ratio = Distribution amount / Net income x 100(3) Financial Position
As ofJune 30, 2020
December 31, 2019

Total Assets
million yen
473,186
453,467

Net Assets
million yen
255,838
239,269

1

Net Assets / Total Assets
%
54.1
52.8

Net Asset Per Unityen
266,984
259,230

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(4) Cash Flows
Cash Flows fromOperating Activities
For the six months ended

Cash Flows from
Investing Activities

million yen
8,967
9,383

June 30, 2020
December 31, 2019

million yen(17,892)(1,025)

Cash Flows from
Financing Activities
million yen
11,250(6,849)Cash and Cash
Equivalents
at End of Period
million yen
40,10037,775

2. Forecasts for the 38th Fiscal Period Ending December 31, 2020 (July 1, 2020 – December 31, 2020) andthe 39th Fiscal Period Ending June 30, 2021 (January 1, 2021 – June 30, 2021)[Amounts are rounded down to the nearest million yen, except for per unit figures.][% figures represent the increase (decrease) compared with the previous fiscal period]

Operating
Revenues

Operating
IncomeOrdinary
IncomeNet
IncomeDPU [excluding Exceedingexceeding profit
Profitdistribution per Distribution
unit]
Per Unit%yen
yenmillion yen% million yen% million yen% million yen
38th Fiscal Period
16,695
2.0
8,100
1.1
7,399
1.7
7,398
1.7
7,720
Ending December
31, 2020
39th Fiscal Period
16,475
(1.3)
7,866
(2.9)
7,188
(2.8)
7,187
(2.8)
7,500
Ending June 30,2021(Reference) Estimated net income per unit (forecast net income / forecast number of investment units at end of period)
38th fiscal period ending December 31, 2020:
7,720 yen
39th fiscal period ending June 30, 2021:
7,500 yen

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(a) Changes in accounting policies accompanying amendments to accounting standards, etc.:(b) Changes in accounting policies other than in (a):(c) Changes in accounting estimates:(d) Retrospective restatement:

–

–

None
None
None
None

(2) Number of Investment Units Issued and Outstanding(a) Number of investment units (including treasury units) issued and outstanding at end of period
As of June 30, 2020:
958,250 units
As of December 31, 2019:
923,000 units(b) Number of treasury units at end of period
As of June 30, 2020:
0 units
As of December 31, 2019:
0 units(Note) With regard to the number of investment units, which serves as the basis for calculating net income per unit, please refer to“Per Unit Information,” on page 20.

* This financial report is not subject to audit procedures by public accountants or audit corporations.
* Special note
The forecasts for the 38th fiscal period ending December 31, 2020 and the 39th fiscal period ending June 30, 2021
are calculated as of August 17, 2020 based on the assumptions described on pages 7 and 8 of this report.
Accordingly, actual operating revenues, operating income, ordinary income, net income, DPU and exceeding
profit distribution per unit may differ from the forecasts. Moreover, the forecasts should not be construed as aguarantee of the distribution amount.

This is an English-language translation of original Japanese announcement on our website released on August17, 2020. However, no assurance or warranties are given with respect to the accuracy or completeness of thisEnglish-language translation. The Japanese original shall prevail in the case of discrepancies between thistranslation and the Japanese original.

2Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

1. Management Status
1) Overview of Fiscal Period under Reviewa) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act
on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended), and was listedon the Tokyo Stock Exchange Real Estate Investment Trust Section on June 14, 2002 with 289,600
outstanding investment units. With the subsequently implemented public offerings and other capitalraising measures by JPR, the number of investment units issued and outstanding totals 958,250 units asof the end of the 37th fiscal period (June 30, 2020). JPR has assigned the asset management of its
portfolio to Tokyo Realty Investment Management, Inc. (TRIM), through which JPR aims to maximize
unitholder value by efficiently managing the portfolio primarily comprising office properties and retailproperties.
b) Management Environment
Looking at the Japanese economy in the 37th fiscal period, a rapid decrease in exports and deteriorationof corporate earnings were observed under the influence of the novel coronavirus infection (COVID19), with capital investment and employment also drifting on a weak note. As the Japanese economy isin an extremely difficult situation, however, signs of improvement are seen in some areas, such as
consumer spending showing a pickup associated with the lift of the government’s declaration of a stateof emergency. The overseas economy has also faced a very severe situation due to the impact of COVID19 but, entering May, the economic conditions in the U.S. and Europe appear to have stopped declining.
The Office Property Leasing Market
The supply and demand conditions in the office property leasing market generally remained tight, despite
the impact of COVID-19 observed in some areas, and the upward trend of the rent levels for new
contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
Activities at urban retail properties which JPR targets for investment were weak as urban areas becamemuch less crowded due to such factors as the spread of COVID-19 and voluntary restraint of people
from going out associated with the government’s declaration of a state of emergency. Following the liftof the declaration, however, a pickup is seen to take place in some areas.
The For-Sale Real Estate Market
In the for-sale real estate market, investors continue to stay on the sidelines as they feel uncertain of theoutlook due to the spread of COVID-19, etc., and transactions have remained stagnant since April. Views
on hotels and urban retail properties, which are particularly impacted hard, are mostly very attentive tothe track to recovery going forward, and the trend of investors’ expected cap rate reflects their cautious
attitude. On the other hand, there has been no increase in such actions as transfers and rushed selling ofproperties in the face of worsened corporate earnings to date. As blue-chip properties in which JPR
targets to invest are still in short supply and low-yield transactions continue to prevail, the acquisition
environment remains harsh. Accordingly, investors continue to look for ways to effectively acquire
properties, such as diversifying the target assets for investment and conducting asset replacement.
c) Portfolio Management Status
Acquisition of New Properties and Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus office properties
in regional cities and retail properties, etc. (including hotels; the same shall apply hereinafter), with theprimary aim of improving the quality of the portfolio and achieving stable growth of earnings while
giving attention to balancing diversification of the portfolio, both in terms of location and asset type.
During the 37th fiscal period, JPR acquired Minami Semba Bldg. (acquisition price: 3,750 million yen)in January 2020 as well as Sencity Bldg. (acquisition price: 13,870 million yen) in March 2020.
Consequently, as of the end of June 2020, the balance of JPR’s assets under management totaled 65
properties, or 457.1 billion yen on an acquisition price basis, with the total leasable floor space standingat 499,269 m2 and the number of tenants at 851.

3

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Operational Management of Portfolio
In the office property leasing market in the 37th fiscal period, the vacancy rate stayed at a low level,
given a more advanced improvement in the supply and demand balance in Tokyo and other areas. Under
such circumstances, JPR endeavored to attract new tenants through strategic leasing activities andenhance the satisfaction of existing tenants by keeping close cooperation with property managementcompanies and brokers, with an aim of enhancing earnings from the entire portfolio and improving its
occupancy rate. As a result of these efforts, the occupancy rate at the end of the 37th fiscal period
increased 0.1 points period-on-period to 99.7%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and
Save Energy), JPR continued to proactively implement value enhancement works based on tenant needs
with an aim to create spaces where the workers feel satisfaction. As an endeavor to implement energysaving measures, JPR conducted renovation of air-conditioning systems and replacement of lighting
equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple properties.
Moreover, as its initiatives on environmental issues, JPR has continuously obtained environmental
certifications. As of June 30, 2020, JPR acquired the DBJ Green Building Certification*1 for 16
properties and the CASBEE for Building Certification*2 for 10 properties (including 3 newly certified
properties). On top of these certifications JPR acquired, its endeavors on environmental issues were so
acknowledged that it was designated as “Green Star” in the GRESB*3 Real Estate Assessment (thesurvey conducted in 2019), marking the sixth consecutive year of recognition with the highest ranking
in the survey. JPR was also granted a higher rank of “5 Stars” in the GRESB Rating, which makes
relative assessment based on total scores.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times
by scoring buildings based on the scoring model originally developed by Development Bank of Japan Inc. Its purpose is topromote properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet the social
requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system forcomprehensively assessing the environmental performance of buildings. Efforts to develop and popularize the system in Japanare being made under the leadership of the Ministry of Land, Infrastructure, Transport and Tourism.
*3 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating
sustainability of real estate companies, REITs and real estate private placement funds, in terms of environmental friendliness andsocial nature. It is based on surveys conducted by a group of the same name composed of more than 60 organizations worldwide
such as European pension asset managers.

Fund Procurement
In the 37th fiscal period, JPR additionally issued investment units to procure 16.2 billion yen, which wasused to fund the acquisition of a new property and repay borrowings.
JPR also endeavored on debt financing with more emphasis placed on lengthening the debt maturity anddiversifying repayment dates, in an effort to make its financial base more solid and stronger against the
backdrop of the favorable fund procurement environment and low interest rates. During the fiscal period,
JPR borrowed 13.0 billion yen to fund the refinance of interest-bearing debts (9.0 billion yen) and theacquisition of another property (4.0 billion yen). The average maturity of and the average interest on the
new interest-bearing debts stood at 8.8 years and 0.53%, respectively, in contrast to 5.4 years and 0.83%
for the relevant interest-bearing debts (excluding short-term debts) before refinancing.
As of the end of the 37th fiscal period, the balance of interest-bearing debts totaled 187.0 billion yen,with balance of borrowings of 160.5 billion yen and balance of investment corporation bonds of 26.5
billion yen. The ratio of interest-bearing debt to total assets (Note 1) was 39.5%, long-term and fixedinterest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3) was 0.78% and average
maturity (Note 4) was 4.6 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial
institutions.

4

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

The following represents the issuer ratings for JPR as of the end of the 37th fiscal period.
Details of Corporate Credit Ratings as of June 30, 2020
Credit Rating Agency
Corporate Credit Rating (outlook)
Rating and Investment Information, Inc.
AA− (Stable)
Long-term: A (Stable)
S & P Global Ratings Japan Inc.
Short-term: A−1(Note 1) Ratio of interest-bearing debt to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debt / total interest-bearing debt
(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses(excluding expenses for early repayment of borrowings and for commitment line agreements), amortization of investment
corporation bond issuance costs and investment corporation bond management expenses, divided by the number of businessdays for each fiscal period and annualized by multiplying by 365 days / average balance of borrowings and investment
corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 37th fiscal period to therepayment deadlines for all interest-bearing debts based on the balance of each interest-bearing debt.

d) Operating Results and Cash Distributions
As a result of the aforementioned management performance, JPR posted operating revenues of 16,363
million yen, ordinary income of 7,277 million yen and net income of 7,276 million yen for its 37th fiscal
period ended June 30, 2020. With regard to the cash distributions, JPR decided to distribute part of theretained earnings brought forward that had been internally reserved through the 36th fiscal period, withthe aim of having the profit distributions deducted as expenses based on application of the special
provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate
income tax, etc. As a result, the cash distribution per unit came to 7,595 yen for the 37th fiscal period.
2) Forecast for the Next Fiscal Perioda) Outlook for Management Status
Looking ahead, with the Japanese economy put in an extremely severe situation even though thedeclaration of a state of emergency has been lifted, attention should be paid to the COVID-19 trends andthe impacts of fluctuations in the financial and capital markets, among other factors.
In the office property leasing market, although leasing of newly-constructed buildings supplied in 2020
remains steady, the impact of the spread of COVID-19 is expected to linger for a long time going forward,
raising concerns about the influence it will give on the office market conditions. In this regard, JPR isresolved to continue its endeavors to enhance the competitiveness of its owned properties, as it has
focused on improving tenant satisfaction through proactive implementation of value enhancement works
and provision of elaborate management services.
In the for-sale real estate market, it will become even more important to discern the growth potential inearnings of respective properties, while taking into account the impact of COVID-19 on the leasing
market. Although the downward trend of cap rates that has continued to date may come to a stop, thelow interest rate and low yield environment will be maintained, in which it is required to firmly keep theattitude of vigorously selective investment for implementing real estate investment that assumes
possession of properties over the medium to long term.
i) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve
the quality of its portfolio and enhance its growth potential and stability over the long term. In the forsale office property market, the purchase cap rate and expected cap rate levels still stay low, withproperties remaining in short supply. Going forward, although close attention must be paid to the impact
of COVID-19, etc., JPR will fully investigate the stability and growth potential of candidate properties
when acquiring them. As for retail properties, etc., JPR will work to invest in strictly selected blue-chipproperties that can keep stable revenues at a certain level in order to complement the stability of earnings
from the entire portfolio. In doing so, JPR will have to make more prudent investigations, paying close
attention to the future sales trends, etc. of such properties under the influence of the spread of COVID19. JPR will continue its endeavors to acquire new properties under reasonable terms by negotiating
prices based on detailed market studies and property due diligence.
Moreover, JPR will continue to make investment decisions after a proactive collection of information
through such sources as sponsors of TRIM (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd.,
Taisei Corporation and Meiji Yasuda Life Insurance Company), accurately following market trends andcarefully researching investment value, including the future potential of candidate properties.

5

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Furthermore, JPR will also investigate asset replacement by taking into consideration the timing of
implementation, in order to improve the quality of its portfolio and enhance its growth potential over along term.
ii) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs ofexisting tenants, encourage them to expand office spaces in the same buildings and renew contracts withupward revision of rents through endeavors to enhance tenant satisfaction, while continuously inviting
new tenants through strategic leasing activities. Specifically, JPR will conduct management andoperations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of a favorable leasing market and promote
rapid decision making- Conduct strategic value enhancement works with intent to improve property earnings and increasetenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans andenvironmental friendliness that command high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing thegovernment’s subsidy programsiii) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on
stability, JPR will remain engaged in conservative leverage control, targeting to basically keep the ratio
of interest-bearing debt to total assets at up to 50%. In debt financing, JPR will endeavor to further
lengthen the maturity with a focus on stability in an effort to diversify the repayment dates and reduce
the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arisein accordance with future changes in the financial environment. Moreover, JPR intends to work on fundprocurement through issuance of investment corporation bonds as it aims to diversify fund procurementmeans and sources.
iv) Information Disclosure
Positioning the proactive voluntary disclosure of information as one of its key management policies,
JPR voluntarily discloses information believed to be useful to investment decisions, along with theinformation disclosure required by the Tokyo Stock Exchange and set forth by laws and regulations,etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide expanded information including monthly occupancy rates ofall properties in the portfolio and historical data, as well as offer information for retail investors anddeliver video presentation on financial results sessions for securities analysts. Going forward, we arecommitted to further enriching the disclosure contents and providing information in a timely manner.
v) Significant Subsequent Events
There are no material subsequent events for this fiscal period.
b) Outlook for Management Status (Operating Results)
JPR expects the following management status in the 38th fiscal period (from July 1, 2020 to December
31, 2020) and the 39th fiscal period (from January 1, 2021 to June 30, 2021).
38th Fiscal Period
39th Fiscal Period
Operating revenues
16,695 million yen
16,475 million yen
Operating income
8,100 million yen
7,866 million yen
Ordinary income
7,399 million yen
7,188 million yen
Net income
7,398 million yen
7,187 million yen
Distribution per unit
7,720 yen
7,500 yen
Exceeding profit
– yen
– yen
distribution per unit
For the assumptions underlying this outlook for management status, please refer to “Assumptions forthe 38th fiscal period (from July 1, 2020 to December 31, 2020) and the 39th fiscal period (from January
1, 2021 to June 30, 2021)” shown below.
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly, the actual operating
revenues, operating income, ordinary income, net income, distribution per unit and exceeding profit distribution per unit mayvary due to changes in the circumstances. Moreover, the forecast above should not be construed as a guarantee of the distribution
amount.

6Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Assumptions for the 38th fiscal period (from July 1, 2020 to December 31, 2020) andthe 39th fiscal period (from January 1, 2021 to June 30, 2021)
Item

Assumptions
38th fiscal period: from July 1, 2020 to December 31, 2020 (investment period: 184 days)
Period39th fiscal period: from January 1, 2021 to June 30, 2021 (investment period: 181 days)
・The number of properties is assumed to be 65 properties owned by JPR as of August 17, 2020.
Property Portfolio ・In practice, this assumption may vary due to such events as acquisition of additional properties
or sale of existing properties.
・Real estate rental revenues are calculated on the basis of the lease contracts effective as of June30, 2020, with consideration given to such factors as the market environment and status ofnegotiations with tenants, as well as taking into account the impact of certain tenant move-ins
and move-outs, among other factors. JPR also assumes that rents will be paid on time and that
Operatingno tenants will fail or decline to pay rents.
Revenues
・Aside from the above, the figures are calculated by factoring in the impact of the spread of
COVID-19, such as rent reductions, to a certain extent.
・The assumed period-average occupancy rate at end of month is 99.1% for the 38th fiscal period
and 98.6% for the 39th fiscal period.
・Among rental expenses, which are the principal operating expenses, outsourcing expenses andother expenses excluding depreciation are calculated based on historical data, etc., reflecting
variable factors of expenses. Outsourcing expenses are assumed to be 632 million yen for the
38th fiscal period and 624 million yen for the 39th fiscal period.
・For property taxes and city planning taxes, the amount attributed to the relevant fiscal period is
calculated out of the levied tax amount, and is assumed to be 2,386 million yen for the 38th fiscal
period and 2,584 million yen for the 39th fiscal period. In general practice, the property taxes andcity planning taxes levied on properties acquired are settled after prorating for the period with theprevious owner at the time of acquisition, but JPR includes the amount equivalent to such settlementin the acquisition costs for the properties. Accordingly, the property taxes and city planning taxes
on Minami Semba Bldg. and Sencity Bldg. that JPR acquired in the 37th fiscal period will beOperatingappropriated in the 39th fiscal period ending June 2021 and thereafter.
Expenses
・For expenditures for the repair and maintenance of buildings, the amount expected to be requiredin each of the fiscal periods has been recorded. However, the expenditures for repair andmaintenance for each of the fiscal periods could differ significantly from the estimated amount,as expenditures may arise due to damage to the building caused by unexpected factors, etc., andbecause the variance in amounts generally tends to grow from year to year and repair expenses
do not arise regularly.
・Depreciation is calculated using the straight line method, including additional future capital
expenditures. Depreciation is assumed to be 2,086 million yen for the 38th fiscal period and2,099 million yen for the 39th fiscal period.
・ Operating expenses excluding rental expenses other than rental business expenses (asset
management fees, administrative service and custodian fees, etc.) are assumed to be 945 million
yen for the 38th fiscal period and 940 million yen for the 39th fiscal period.
・As
for major non-operating income, JPR assumes income on settlement of management
Non-Operating
associationaccounts to be 41 million yen for the 38th fiscal period and 53 million yen for the
Income39th fiscal period.
・As for major non-operating expenses, JPR assumes 735 million yen for the 38th fiscal period
Non-Operating
and 723 million yen for the 39th fiscal period for interest paid, fees related to loan arrangement,
Expensesinterest expenses on investment corporation bonds and amortization of investment corporationbond issuance costs, etc.
・The ratio of interest-bearing debt to total assets as of August 17, 2020 stands at 39.5%, withinterest-bearing debts of 187,020 million yen (comprised of 160,520 million yen in long-termloans payable and 26,500 million yen in investment corporation bonds).
・It is assumed that all interest-bearing debt for which repayment (redemption) dates will arrive
during the 38th and 39th fiscal periods will be refinanced.
Interest-Bearing
・The ratio of interest-bearing debt to total assets is assumed to be 39.5% at the end of the 38th
Debt Ratio
fiscal period and 39.5% at the end of the 39th fiscal period.
・The following formula is used in calculating the ratio of interest-bearing debt to total assets inthis table.
Ratio of interest-bearing debt to total assets =Expected total interest-bearing debt / Expected total assets x 100
Total Units
・The total number of investment units issued and outstanding is 958,250 units as of August 17,
Outstanding
2020, and it is assumed that no investment units will be issued.
・For distribution per unit, it is assumed that all revenues will be distributed based on the
distribution methods provided in the Articles of Incorporation.
Distribution Per ・Thereis the possibility that the distribution per unit may vary due to various factors including
Unitvariation of rental revenue due to transfer of assets under management and tenants moving out,
and unpredicted repairs and maintenance.
7

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Item
Assumptions
Exceeding Profit
Distribution Per ・Distribution of monies exceeding the profit is currently not assumed.
Unit
・It is assumed that there will be no changes in legislation, taxation, accounting standards,
regulations applying to publicly listed companies, rules and requirements imposed by the
OthersInvestment Trusts Association, Japan that will impact the aforementioned forecast.
・It is also assumed that there will be no unexpected material changes in general economic andreal estate market conditions.

8

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

2. Financial Statements(1) Balance Sheets(Thousands of Yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
LandLand in trust
Construction in progress
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs

Investment unit issuance expenses
Total deferred assets
Total assets

9

End of 36th Fiscal
PeriodEnd of 37th Fiscal
Period(Dec. 31, 2019)(Jun. 30, 2020)¥25,016,928
12,758,578
246,507
159,405–
15,19838,196,618¥27,126,776
12,973,691
289,154
142,036
172,716
15,201
40,719,576

60,602,042(18,920,510)
41,681,532
93,481,011(35,522,474)
57,958,537
58,409(26,812)31,597
146,650(88,531)
58,118
821,773(542,077)
279,696
1,919,756(1,435,893)
483,862
129,582(64,452)
65,129232,578(169,599)
62,979113,060,949
189,014,043
2,413
2,035
402,700,894

64,616,121(19,809,897)
44,806,224
95,176,039(36,554,181)
58,621,857
62,220(28,412)33,807
133,739(80,982)
52,757
838,393(564,455)
273,937
1,929,556(1,464,811)
464,745
143,061(71,367)
71,694
252,219(178,396)
73,823
123,264,320
192,157,692
1,219
150
419,822,228

11,801,831
3,962
11,805,793

11,801,831
3,573
11,805,404

590,776
43,220633,997
415,140,685

612,216
70,319682,536432,310,169

129,512917
130,429¥453,467,733

119,523
37,540157,064¥473,186,809

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(Thousands of Yen)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

10

End of 36th Fiscal
PeriodEnd of 37th Fiscal
Period(Dec. 31, 2019)(Jun. 30, 2020)¥3,379,730
1,000,000
21,000,000
669,920
81,175605
381,254
3,022,445
5,033
29,540,165¥2,814,074–
20,820,000
910,146
79,421
605
136,082
3,048,380–
27,808,710

26,500,000
136,520,000
8,049,652
13,588,304
184,657,957
214,198,122

26,500,000
139,700,000
9,378,333
13,961,750
189,540,084
217,348,795

231,653,198

247,860,796

689,444689,444689,444689,4446,926,967

7,287,774

7,616,411
239,269,610
239,269,610¥453,467,733

7,977,218
255,838,014
255,838,014¥473,186,809

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(2) Statements of Income and Retained Earnings(Thousands of Yen)

Operating revenue
Rent revenue-real estate
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management associationaccounts
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Amortization of investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

11

36th Fiscal
Period37th Fiscal
Period(Jul. 1, 2019 –Dec. 31, 2019)(Jan. 1, 2020 –Jun. 30, 2020)¥16,005,870
16,005,870¥16,363,494
16,363,494

7,538,619
569,134
79,051
5,066
23,752
105,262
8,320,887
7,684,983

7,436,206
711,694
78,6744,200
22,812
96,6178,350,206
8,013,288

189

195

4,357

21,669

1,527
1,639
7,713

25,258
4,088
51,212556,344
27,753
174,899

543,152
23,760167,455

10,953

9,988

7,339
221
777,510
6,915,185
6,915,185
605
605
6,914,580
12,386¥6,926,967

5,537
37,154
787,050
7,277,450
7,277,450
605
605
7,276,845
10,928¥7,287,774

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(3) Statements of Changes in Unitholders’ Equity(Thousands of Yen)

36th Fiscal
Period(Jul. 1, 2019 –Dec. 31, 2019)
Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period
Issuance of units
Total changes of items during the period
Balance at end of current period
Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Total changes of items during the period
Balance at end of current period
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total unitholders' equity
Balance at the beginning of current period
Changes of items during the period
Issuance of units
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Changes of items during the period
Issuance of units
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period

1237th Fiscal
Period(Jan. 1, 2020 –Jun. 30, 2020)¥231,653,198¥231,653,198–
231,653,198

16,207,597
16,207,597
247,860,796

284,356

689,444405,088405,088689,444–689,4447,229,214

6,926,967(405,088)(6,811,740)
6,914,580(302,247)
6,926,967(6,916,039)
7,276,845
360,806
7,287,774

7,513,570

7,616,411–(6,811,740)
6,914,580
102,840
7,616,411(6,916,039)
7,276,845
360,806
7,977,218

239,166,769

239,269,610
16,207,597–(6,811,740)
6,914,580
102,840239,269,610(6,916,039)
7,276,845
16,568,404
255,838,014

239,166,769

239,269,610
16,207,597–(6,811,740)
6,914,580
102,840¥239,269,610(6,916,039)
7,276,845
16,568,404¥255,838,014

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(4) Statements of Cash Distributions

I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)
III. Retained earnings carried forward
Method for calculating distribution amount36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)
6,926,967,425 yen
6,916,039,000 yen(7,493 yen)
10,928,425 yen
Pursuant to the policy on cash
distributions provided in Article 30(2) of the Articles of Incorporation of
JPR, the distribution amount shall bein excess of an amount equivalent to
90% of the “distributable income
amount” as stipulated in Article 67-15
of the Act on Special Measures
Concerning Taxation, but no morethan the amount of earnings. Based onsuch policy, JPR decided to pay out
distributionsofearnings
of
6,916,039,000 yen, which is thelargest integral multiple of the total
number of investment units issued andoutstanding (923,000 units) in an
amountnotinexcessofunappropriated retained earnings
while minimizing the burden tounitholders incurred by accrual of
corporateincometax,
etc.
Furthermore, JPR shall not distributecash in excess of earnings as
stipulated in Article 30 (4) of the
Articles of Incorporation.

13

37th Fiscal Period(Jan. 1, 2020 – Jun. 30, 2020)
7,287,774,097 yen
7,277,908,750 yen(7,595 yen)
9,865,347 yen
Pursuant to the policy on cash
distributions provided in Article 30(2) of the Articles of Incorporation of
JPR, the distribution amount shall bein excess of an amount equivalent to
90% of the “distributable income
amount” as stipulated in Article 67-15
of the Act on Special Measures
Concerning Taxation, but no morethan the amount of earnings. Based onsuch policy, JPR decided to pay out
distributionsofearnings
of
7,277,908,750 yen, which is thelargest integral multiple of the total
number of investment units issued andoutstanding (958,250 units) in an
amountnotinexcessofunappropriated retained earnings
while minimizing the burden tounitholders incurred by accrual of
corporateincometax,
etc.
Furthermore, JPR shall not distributecash in excess of earnings as
stipulated in Article 30 (4) of the
Articles of Incorporation.

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(5) Statements of Cash Flows(Thousands of Yen)

36th Fiscal
Period(Jul. 1, 2019 –Dec. 31, 2019)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at beginning of current period
Cash and cash equivalents at end of current period

1437th Fiscal
Period(Jan. 1, 2020 –Jun. 30, 2020)¥6,915,185
1,974,265
10,9537,339(189)
731,243
139,330–(20,526)
76,706(69,756)
250,962
161,598(72,891)
10,104,222
189(720,320)(606)
9,383,485¥7,277,450
2,027,993
9,988
5,537
(195)
710,608(42,646)(172,716)
17,368(178,048)
240,609(245,172)25,934
3,184
9,679,895
195(712,361)(605)
8,967,123(429,256)(649,786)(45,918)(206,466)
157,687(239,597)
387,903(1,025,434)(14,685,251)(4,888,250)(21,440)(73,346)
1,402,591(55,383)
428,829(17,892,251)

4,000,000(5,000,000)
8,000,000(8,000,000)
4,960,579(4,000,000)–(6,810,234)(6,849,654)
1,508,397
36,267,109¥37,775,506–(1,000,000)
13,000,000(10,000,000)––
16,165,436(6,915,347)
11,250,088
2,324,960
37,775,506¥40,100,467

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(6) Notes to the Going Concern Assumption
No relevant items.
(7) Notes to Significant Accounting Policies
The disclosure is omitted as there are no significant changes from the descriptions in the latest securities
report (submitted on March 26, 2020).
(8) Notes to Financial Statements
Notes to Balance Sheets
1. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks
and enhance financial stability.

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

End of 36th Fiscal Period(as of December 31, 2019)¥24,000,000–¥24,000,000(Thousands of yen)
End of 37th Fiscal Period(as of June 30, 2020)¥24,000,000–¥24,000,000

2. Minimum Total Unitholders’ Equity Designated in Article 67-4 in the Act on Investment Trusts andInvestment Corporations
End of 36th Fiscal Period(as of December 31, 2019)(Thousands of yen)
End of 37th Fiscal Period(as of June 30, 2020)¥50,000¥50,000

15

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

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

36th Fiscal Period(July 1, 2019 –December 31, 2019)37th Fiscal Period(January 1, 2020 –June 30, 2020)

A. Rent Revenue-Real Estate
Rent Revenue
Rents¥11,372,402¥11,965,339

Land rents
Common charges
Parking fees
Advertising fees
Antenna usage fees
Other

1,774,000
1,567,002
262,373
36,467
26,17643,384

1,783,500
1,554,972
267,620
37,17927,60838,183

Subtotal
Other rental revenues
Incidental rent income

15,081,806

15,674,404

799,897620,296

Time-based parking fees

8,286

8,432

Cancellation charges

21,686

9,088

Income equivalent to expenses forrestoration to original condition

62,445

21,910

Other miscellaneous income

31,74829,362

Subtotal

924,063

689,090

16,005,870

16,363,494¥609,389
866,496
2,335,893
25,316
610,360
299,229
570,509
1,973,941
247,482¥615,760
712,430
2,358,609
26,116
602,597
331,402573,6212,027,669
187,999

7,538,619

7,436,206

8,467,251

8,927,288

Total rent revenue-real estate
B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
Depreciation
Other
Total expenses related to rent business
C. Profits for Rent Business (A-B)

Notes to Statements of Changes in Unitholders’ Equity
36th Fiscal Period(July 1, 2019 – December 31, 2019)
Total number of authorizedunits and number of units
outstanding
Total number of authorizedunits
Number of units outstanding

16

37th Fiscal Period(January 1, 2020 – June 30, 2020)

5,000,000 units

5,000,000 units

923,000 units

958,250 units

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Financial Instruments
1. Matters Concerning Status of Financial Instruments(1) Policy for Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts
the asset management policy of paying heed to efficiently combining the procurement of long-term funds
that are stable and the procurement of short-term funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging forinterest rate fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivativetransactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk
management by complying with the JPR Asset Management Guidelines and other rules and regulations. The
following outlines the description of individual financial instruments and the associated risks, and the risk
management.
Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit
risks, but the risks are managed through such measures as setting a minimum credit rating for the financial
institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of
repayment/redemption, but the liquidity risks are managed through such measures as procuring funds fromthe capital market by increasing capital, executing a commitment line agreement with the main lending
financial institutions, and also having statements of cash receipts and disbursements prepared by the financial
division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
The fair value of financial instruments, aside from values based on market price includes values based onreasonable calculations when there is no market price. Certain assumptions are used in calculating thosevalues and there may be cases where the values will vary when different assumptions are used.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of December 31, 2019 of financial instruments, and thedifference between these amounts. Please note the following table does not include those for which discerningof fair value is recognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)

1) Cash and deposits
2) Cash and deposits in trust3) Short-term loans payable4) Current portion of long-term loans payable
5) Investment corporation bonds6) Long-term loans payable

Carrying Value(Note 1)¥25,016,928
12,758,578(1,000,000)(21,000,000)

Fair Value(Note 1)¥25,016,928
12,758,578(1,000,000)(21,091,412)(26,500,000)(27,732,745)

1,232,745(¥136,520,000)(¥138,243,341)¥1,723,341

17

Difference¥–––
91,412

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

The following are the carrying values and fair values as of June 30, 2020 of financial instruments, and thedifference between these amounts. Please note the following table does not include those for which discerningof fair value is recognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)

1) Cash and deposits
2) Cash and deposits in trust3) Short-term loans payable

Carrying Value(Note 1)
¥27,126,776
12,973,691–

Fair Value(Note 1)
¥27,126,776
12,973,691–(20,820,000)(20,896,871)

4) Current portion of long-term loans payable
5) Investment corporation bonds6) Long-term loans payable

Difference¥–––
76,871(26,500,000)(27,476,144)

976,144(¥139,700,000)(¥141,351,070)¥1,651,070(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the fair value is approximately the same as the carrying value
and is thus stated at that carrying value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value isapproximately the same as the book value and is thus stated at that book value.
(4) Current portion of long-term loans payable and (6) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount ofprincipal and interests are discounted by the rate assumed as being applicable in the event of a new drawdown whose term iscorresponding to the remaining loan term.
(5) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are calculated based on market price and those with no market
price are calculated in accordance with (4) and (6) above.
(Note 3) Financial instruments for which discerning of fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental
properties are not subject to disclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult
since there is no market price and also since it is difficult to calculate the actual deposit period from when lessees move in to when they
move out. The following is the carrying value of tenant leasehold and security deposits and tenant leasehold and security deposits in trust.

Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

End of 36th Fiscal Period(as of December 31, 2019)¥8,049,652¥13,588,304(Thousands of yen)
End of 37th Fiscal Period(as of June 30, 2020)¥9,378,333¥13,961,750(Note 4) Scheduled redemption of monetary claims to be due subsequent to December 31, 2019 and June 30, 2020

End of 36th Fiscal Period (as of December 31, 2019)(Thousands of yen)
Due after
Due after
Due in One Year One Year
Two Years
or Less
throughthrough
Two Years Three Years
Cash and deposits
Cash and deposits in trust¥–¥–¥25,016,928¥12,758,578¥–¥–

Due afterThree Years
through
Four Years

Due after
Four Years
throughFive Years

Due after
Five Years

¥–
¥–

¥–
¥–

¥–
¥–

End of 37th Fiscal Period (as of June 30, 2020)
Due in One
Year or Less
Cash and deposits
Cash and deposits in trust¥27,126,776¥12,973,691

Due after
One Yearthrough
Two Years¥–¥–

Due after
Due after
Two Years Three Years
throughthroughThree Years Four Years
¥–
¥–
¥–
¥–

18

(Thousands of yen)
Due after
Due after
Four Years
Five Years
throughFive Years
¥–
¥–
¥–
¥–

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(Note 5) Amount of repayment of short-term loans payable and long-term loans payable or redemption of investment corporation
bonds to be due subsequent to December 31, 2019 and June 30, 2020

End of 36th Fiscal Period (as of December 31, 2019)

Short-term loans
payableInvestment
corporation bonds
Long-term loans
payable(Thousands of yen)
Due after
Four Years
Due after
throughFive Years
Five Years

Due in One
Year or Less

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years¥1,000,000

¥–

¥–

¥–

¥–

¥–

¥–

¥–

¥–

¥2,000,000¥8,000,000¥16,500,000¥21,000,000¥19,820,000¥18,500,000¥21,000,000¥15,000,000¥62,200,000

Due in One
Year or Less

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years(Thousands of yen)
Due after
Four Years
Due after
throughFive Years
Five Years

¥–

¥–

¥–

¥–

¥–

¥–

¥–

¥–

¥2,000,000¥5,000,000¥3,000,000¥16,500,000¥20,820,000¥20,500,000¥16,000,000¥20,000,000¥21,000,000¥62,200,000

End of 37th Fiscal Period (as of June 30, 2020)

Short-term loans
payableInvestment
corporation bonds
Long-term loans
payableInvestment and Rental Properties
JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban
complex properties for leasing in Tokyo and other regions. The following is the carrying value on the balance
sheets, amount of increase (decrease) during the period and fair value of these investment and rental properties.
(Thousands of yen)
36th Fiscal Period
37th Fiscal Period(July 1, 2019 – December 31, 2019) (January 1, 2020 – June 30, 2020)
Carrying Value on the Balance Sheets
Balance at Beginning of Period
Amount of Increase(Decrease) during the Period
Balance at End of Period
Fair Value at End of Period¥414,867,157¥414,502,663(¥364,493)¥17,122,534¥414,502,663¥431,625,198¥522,660,000¥538,627,000(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of change during the 36th fiscal period, the amount of decrease is primarily attributable to depreciation (1,973,941 thousandyen). Of the amount of change during the 37th fiscal period, the amount of increase is primarily attributable to the acquisition of Minami
Semba Bldg. (3,794,912 thousand yen) and the acquisition of Sencity Bldg. (14,013,667 thousand yen), and the amount of decrease is
primarily attributable to depreciation (2,027,669 thousand yen).
(Note 3) The fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 36th and 37th fiscal periods for investment and rental properties are as presented in the“Notes to Statements of Income and Retained Earnings.”

19

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Per Unit Information(Yen)
36th Fiscal Period(July 1, 2019 – December 31, 2019)37th Fiscal Period(January 1, 2020 – June 30, 2020)¥259,230¥7,491¥266,984¥7,690Total net assets per unit
Net income per unit

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

(Thousands of yen)
36th Fiscal Period(July 1, 2019 – December 31, 2019)
Net income

37th Fiscal Period(January 1, 2020 – June 30, 2020)¥6,914,580–¥6,914,580
923,000 units

Amounts not attributable to ordinary unitholders
Net income attributable to ordinary investment units

Average number of units¥7,276,845–¥7,276,845
946,241 units

Subsequent Events
There are no material subsequent events for this fiscal period.
Omission of Disclosure
JPR omits the disclosure of notes to statements of cash flows, lease transactions, securities, derivativetransactions, transactions with affiliated parties, tax effect accounting, retirement benefits, asset retirement
obligations and segment information, etc. as it does not find substantial need for disclosure in the Fiscal Period
Results report.
(9) Changes in Investment Units Issued and Outstanding
In the 37th fiscal period, JPR issued new investment units (35, 250 units through public offering) on March 3,2020, to procure 16,207 million yen. The changes in the number of units outstanding and unitholders’ capital in thelast five years are summarized as follows.
Date

Event

Number of Units
Outstanding
Variation
BalanceUnitholders' Capital(million yen)
Variation
Balance

Remarks

January 24, 2017

Additional public offering

47,600920,600

20,237

230,632(Note 1)February 14, 2017

Third-party allotment

2,400

923,000

1,020

231,653(Note 2)

March 3, 2020

Additional public offering

35,250958,250

16,207

247,860(Note 3)(Note 1) New investment units were issued through a public offering at 439,040 yen per unit (underwriting price of 425,152 yen per unit)
to fund acquisition of new specified assets and partly repay debt.
(Note 2) New investment units were issued through a third-party allotment at 425,152 yen per unit to fund acquisition of new specified
assets and partly repay debt.
(Note 3) New investment units were issued through a public offering at 474,810 yen per unit (underwriting price of 459,790 yen per unit)
to fund acquisition of new specified assets and partly repay debt.

20

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

3. Reference Information(1) JPR’s Asset Structure
36th Fiscal Period(as of December 31, 2019)
Category of
Investment Area Assets Owned by JPR Percentage of Total(thousands of yen)
Assets (%)

Asset Type37th Fiscal Period(as of June 30, 2020)
Assets Owned by JPR Percentage of Total(thousands of yen)
Assets (%)

Central Tokyo

86,968,578

19.2

86,819,253

18.3

Greater Tokyo

59,930,822

13.2

73,502,522

15.5

Other Cities

20,024,036

4.4

19,931,527

4.2

Central Tokyo

155,925,261

34.4

155,957,161

33.0Greater Tokyo

49,886,624

11.0

49,682,380

10.5

Other Cities

41,767,339

9.2

45,732,351

9.7

Deposits and Other
Assets–38,965,069
(–)

8.6
(–)

41,561,611
(–)

8.8
(–)

Total Assets–

453,467,733(414,502,663)

100.0(91.4)

473,186,809(431,625,198)

100.0(91.2)

Real Estate

Real Estate in Trust(Note 1) Total assets owned are based on the amounts appropriated on the balance sheets as of the settlement date (book values after depreciation
for real estate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.
(Note 3) As for the category of investment area, please refer to (2) Investment Assets 1) Overview of Investment Assets below.

(2) Investment Assets
1) Overview of Investment Assets
The overview of the real estate and real estate in trust regarding trust beneficiary interests in real estate inwhich JPR invests are as follows. All of the real estate and trust beneficiary interests in real estate are shownin the table below.
Descriptions in the table below are based on the following policies.
・The table below indicates the properties JPR owned as of the end of the 37th fiscal period.
・JPR defines the categories of investment areas as designated below.
Category

Investment Area

Central Tokyo

Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards

Greater Tokyo

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

Other Cities

All other areas in Japan・“Location,” “Site Area,” “Total Floor Space,” “Structure/Floors” and “Completed” are based on data
recorded in the real estate registry.
・“Site Area” and “Total Floor Space” indicate the areas of the entire building sites and the entire
buildings, respectively, including the portions owned by other sectional owners, etc. except for thefollowing properties:
MS Shibaura Bldg.: The site area includes land of the Trinity Shibaura, which was developed
together with the property.
Shinjuku Square Tower: The site area and the total floor space are for the entire redevelopment
area.
Rise Arena Bldg.: The site area is for the entire redevelopment area including the residentialbuilding, and the total floor space includes the space of the residential building.
Olinas Tower: The site area and the total floor space are for the entire property including the retailand residential buildings.
Sencity Bldg.: The site area and the total floor space are for the entire redevelopment area.
Cupo-la Main Bldg.: The site area is for the entire redevelopment area.
・ The abbreviations in the “Structure/Floors” represent the following phrases, respectively.
S: Steel-framed,
RC: Reinforced concrete,
SRC: Steel-framed reinforced concrete

21

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Area

Type

Location

Site Area(m2)

Total Floor
Space (m2)

Kyobashi 2-chome, Chuo-ku,
TokyoKyobashi 2-chome, Chuo-ku,
Tokyo
Ningyocho 1-chome, Chuo-ku,
TokyoKojimachi 4-chome, Chiyoda-ku,
Tokyo
Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo
Shibaura 4-chome Minato-ku,
TokyoNishi-Gotanda 2-chome,
Shinagawa-ku, Tokyo

1,751.13

14,995.09

679.06

4,351.46

550.06

4,117.70

657.805,152.98

636.904,790.68

8,992.18

31,020.21

1,551.19

10,553.34

JPR Ichigaya Bldg.

Kudan-Minami 4-chome, Chiyodaku, Tokyo

1,058.04

5,888.82

SRC
B1/9F

Oval Court Osaki MarkWest

4,006.00

28,575.80

8,409.52

78,796.00

3,522.46

25,733.10

858.485,535.90

14,917.11

176,607.89

Minami Azabu Bldg.

Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
Nishi-Shinjuku 6-chome, Shinjukuku, Tokyo
Shinjuku 2-chome, Shinjuku-ku,
Tokyo
Shinkawa 1-chome, Chuo-ku,
TokyoNishi-Shinjuku 1-chome, Shinjukuku, Tokyo
Minami-Azabu 2-chome, Minatoku, Tokyo

778.094,570.63

Shinagawa Canal Bldg.

Konan 2-chome, Minato-ku, Tokyo

828.82

5,216.21

Rokubancho Bldg.

Rokubancho, Chiyoda-ku, Tokyo

716.95

4,205.09

JPR Harajuku Bldg.

1,205.07

6,466.94

937.597,190.82

JPR Sendagaya Bldg.

Jingumae 6-chome, Shibuya-ku,
TokyoNihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
Sendagaya 4-chome, Shibuya-ku,
Tokyo

2,217.49

7,683.19

Ginza Sanwa Bldg.

Ginza 4-chome, Chuo-ku, Tokyo

1,119.27

8,851.00

S, SRC
B2/17F
S, RC, SRC
B4/30F
SRC
B2/14F
S, SRC
B2/10F
SRC, RC, S
B5/54F
S
9F
S
B1/8F
SRC
B3/7F
SRC
B1/9F
S, RC
B1/9F
S
8F
SRC
B2/9F

Otemachi Tower (Landwith Leasehold Interest)

Otemachi 1-chome, Chiyoda-ku,
Tokyo

11,034.78–––

Science Plaza-Yonbancho
Plaza

Yonbancho, Chiyoda-ku, Tokyo

5,289.01

24,560.36

Feb. 1995

Shibadaimon Center Bldg.

1,915.50

11,419.93

8,124.72

112,645.83

JPR Kojimachi Bldg.

Shibadaimon 1-chome, Minato-ku,
TokyoKyobashi 3-chome, Chuo-ku,
TokyoKojimachi 5-chome, Chiyoda-ku,
Tokyo

643.134,438.46

S,SRC, RC
B2/12F
S, SRC
B1/10F
S, SRC
B4/24FS
B1/9F

JPR Shibuya Tower
Records Bldg.

Jinnan 1-chome, Shibuya-ku,
Tokyo

1,010.47

8,449.56

SRC, S
B3/8F

JPR Jingumae 432

Jingumae 4-chome, Shibuya-ku,
TokyoShinjuku 3-chome, Shinjuku-ku,
Tokyo
Yurakucho 2-chome, Chiyoda-ku,
Tokyo

198.101,066.81

Feb. 2006

2,578.69

24,617.65

6,808.12

71,957.65

S, SRC
B1/7F
S, SRC, RC
B3/14F
S, SRC
B4/20FJPR Ginza Namiki-dori
Bldg.

Ginza 5-chome, Chuo-ku, Tokyo

230.11

1,821.67

S
11F

Jun. 2008

FUNDES Suidobashi

Kanda Misakicho 2-chome,
Chiyoda-ku, Tokyo

281.591,477.91

S
9F

Jul. 2015

Property Name
Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.

Shinjuku Square Tower
BYGS Shinjuku Bldg.

Central Tokyo

OfficeAcross Shinkawa Bldg.
Annex
Shinjuku Center Bldg.

JPR Nihonbashi-horidome
Bldg.

Retail, etc.

Tokyo Square Garden

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

22

Structure/
Completed
FloorsS, RC, SRC Feb. 1993
B2/13F
SRC Feb. 1993
B1/8F
SRC, RC
B1/8F Dec. 1989
SRC
B1/9F Oct. 1984
SRC
B1/9F Sep. 1999
SRC, RC, S Feb. 1988
B2/13F
SRC, RC
Jul. 1989
B2/11F
Mar. 1989
Jun. 2001
Oct. 1994
Apr. 1985
Jun. 1994
Oct. 1979
Jun. 1992
Jul. 2008
Oct. 1991
Mar. 1989
Jun. 2002
May 2009
Oct. 1982

Jul. 1993
Feb. 2013
Feb. 1999
Feb. 1992

Jan. 2007
Oct. 2007

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Area

Type

Location

Site Area(m2)

Total Floor
Space (m2)Arca East

Kinshi 3-chome, Sumida-ku, Tokyo

3,755.01

34,281.86

JPR Chiba Bldg.

Shinmachi, Chuo-ku, Chiba, Chiba

1,382.35

9,072.57

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

1,100.59

Yume-ooka Office Tower

Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
Shinyokohama 3-chome, Kohokuku, Yokohama, Kanagawa
Honcho 4-chome, Kawaguchi,
SaitamaMatsugaya 1-chome, Taito-ku,
Tokyo
Akebonocho 2-chome, Tachikawa,
Tokyo
Higashi-Ikebukuro 4-chome,
Toshima-ku, Tokyo
Kamiooka Nishi 1-chome, Konanku, Yokohama, Kanagawa

Olinas Tower
Tokyo Tatemono
Yokohama Bldg.

Property Name

Kawaguchi Center Bldg.

Greater Tokyo

OfficeJPR Ueno East Bldg.
Tachikawa BusinessCenter Bldg.
Rise Arena Bldg.

Omiya Prime East

Retail, etc.

SRC B1/11F

Oct. 1989

841.71

7,781.93

4,524.61

28,420.85

1,242.97

8,490.44

2,047.22

14,706.36

9,377.28

91,280.94

12,011.00

185,974.87

Taihei 4-chome, Sumida-ku, Tokyo

27,335.29

257,842.41

Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
Shimocho 2-chome, Omiya-ku,
Saitama, Saitama

1,110.28

8,772.51

2,268.09

9,203.98

S, SRC
B2/12F
S, SRC
B2/15F
S, SRC
B1/8F
S, SRC
B1/12F
RC, SRC, S
B3/42F
S, SRC, RC
B3/27F
SRC, RC, S
B2/45F
SRC
B1/9F
S
9F

Jan. 1991

Aug. 1991
Feb. 1994
Oct. 1992
Dec. 1994
Jan. 2007
Mar. 1997
Feb. 2006
May 1981
Feb. 2009

20,054.15

158,663.55

S, SRC
B2/23F

Apr. 1993
Aug. 1998
Expanded

Tanashi ASTA

Tanashicho 2-chome, Nishitokyo,
Tokyo
Kawaguchi 1-chome, Kawaguchi,
Saitama
Kosugimachi 3-chome, Nakaharaku, Kawasaki, Kanagawa
Bessho 7-chome, Minami-ku,
Saitama, Saitama
Ekimae-Honcho, Kawasaki-ku,
Kawasaki, Kanagawa

12,326.30

80,675.27

SRC B2/17F

Feb. 1995

15,008.28

48,321.96

4,757.09

18,394.32

8,317.99

28,930.36

4,475.45

36,902.01

FUNDES Ueno

Ueno 7-chome, Taito-ku, Tokyo

383.742,235.60

Niigata Ekinan Center
Bldg.
Tokyo Tatemono
Honmachi Bldg.

Yoneyama 1-chome, Chuo-ku,
Niigata, Niigata
Honmachi 3-chome, Chuo-ku,
Osaka, Osaka

2,706.99

19,950.42

1,432.64

14,619.52

JPR Hakata Bldg.

Hakataeki-mae 1-chome, Hakataku, Fukuoka, Fukuoka

1,214.63

9,828.73

Matsuyama 1-chome, Naha,
Okinawa
Tsutsujigaoka 3-chome, Miyaginoku, Sendai, Miyagi
Misonocho 3-chome, Wakayama,
Wakayama
Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
Sakae 1-chome, Naka-ku, Nagoya,
Aichi
Yakuin 1-chome, Chuo-ku,
Fukuoka, Fukuoka

959.875,780.71

S, RC, SRC
B2/10F
SRC, RC, S
B1/6F
S
B1/4F
S, SRC, RC
B2/11FS
B1/10F
S, SRC
B1/10F
SRC
B3/9F(Office)S, RC
B1/12F(Parking)
S 1F
SRC, S
12F

1,895.67

10,783.52

SRC B1/12F

Dec. 1997

1,128.45

6,715.07

Jul. 1996

1,164.39

8,690.95

668.11

5,696.01

1,610.38

10,201.44

4,486.44

22,286.35

S
9F
S, SRC
13F
SRC
B2/9F
SRC
B1/9F
SRC
14F

JPR Musashikosugi Bldg.
Musashiurawa Shopping
SquareJPR Naha Bldg.

Office9,146.52

Mar. 1997

Shinmachi, Chuo-ku, Chiba, Chiba

Kawasaki Dice Bldg.

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

Retail, etc.

Completed

Sencity Bldg.

Cupo-la Main Bldg.

Other Cities

Structure/
FloorsS, SRC
B3/19F
S, SRC
B1/13FJPR Shinsaibashi Bldg.

Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka

609.315,303.98

S
B2/10F

Minami Semba Bldg.

Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka

1,405.74

7,738.47

SRC
B1/8F

JPR Umeda Loft Bldg.

Chayamachi, Kita-ku, Osaka, Osaka

3,518.68

17,897.56

Housing Design Center
Kobe

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

3,994.47

33,877.71

JPR Chayamachi Bldg.

Chayamachi, Kita-ku, Osaka, Osaka

592.45

3,219.36

SRC
B1/8F
SRC, S
B2/11F
S, SRC
9F

23

Jan. 2006
Mar. 1983
Oct. 2005
Aug. 2003
Jul. 2017
Mar. 1996
Feb. 1970(Office)Jun. 1985(Parking)
Nov. 2003
Expanded
Oct. 1991

Jul. 2000
Oct. 1993
Mar. 1991
Jan. 2009
Feb. 2003
Jan. 2005
Expanded
Sep. 1986
Feb. 2007
Expanded
Apr. 1990
Jun. 1994
Jun. 1994

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

2) Price and Investment Ratio
・ “Acquisition Price” is the deal price (rounded down to the nearest million yen) described in the realestate transaction contracts or trust beneficiary interest transfer contracts, and does not include
expenses related to acquisitions of the relevant properties and consumption taxes.
Furthermore, the total amount is also rounded down to the nearest million yen after summing up
respective acquisition prices including fractions.
・ For “Appraisal Value at End of Period,” JPR adopts the assessed value in the real estate appraisal
reports or the survey value in the real estate price survey reports, prepared by the real estateappraisers indicated below, based on the asset evaluation method designated by JPR and the rules of
The Investment Trusts Association, Japan. The adopted appraisal value has been rounded down to
the nearest million yen.
Japan Real Estate InstituteTanizawa Sogo Appraisal Co., Ltd.
CBRE KK
Daiwa Real Estate Appraisal Co.,
Ltd.

Japan Valuers Co., Ltd.

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

・ The “Investment Ratio” in terms of the “Acquisition Price” and the “Appraisal Value at End of Period”

represents the ratio of the Acquisition Price and the Appraisal Value at End of Period of respective
properties, including fractions not indicated herein, to the total amounts of the Acquisition Price or
the Appraisal Value at End of Period of the properties owned by JPR at end of the 37th fiscal period,
indicated in a percentage rounded to the first decimal place.

24

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Acquisition Price
Area

Type

Property Name

Acquisition Date

Price(million yen)

Kanematsu Bldg.

Dec. 27, 2001

16,276

3.6

14,9002.8

Kanematsu Bldg. Annex

Dec. 27, 2001

2,874

0.6

3,500

0.6

JPR Ningyo-cho Bldg.

Nov. 16, 2001

2,100

0.5

2,890

0.5

Nov. 16, 2001

1,670

Nov. 21, 2002

550

0.5

4,240

0.8

Shin-Kojimachi Bldg.

Nov. 12, 2004

200

JPR Crest Takebashi Bldg.

Jun. 21, 2002

4,000

0.9

3,770

0.7

MS Shibaura Bldg.

Mar. 28, 2003

11,2002.5

15,0002.8

Gotanda First Bldg.

Jul. 23, 2003

2,920

0.6

4,150

0.8

JPR Ichigaya Bldg.

May 28, 2004

5,100

1.1

4,820

0.9

Oval Court Ohsaki Mark West

Jun. 1, 2004

3,500

0.8

5,450

1.0

3.3

14,7002.7

3.3

21,100

3.9

Shinjuku Square Tower

Office10,000
180
4,000
786

Nov. 9, 2004

2,900
8,921

Jul. 13, 2010

3,300

Across Shinkawa Bldg. Annex

Nov. 26, 2004

710

0.2

777

0.1

Shinjuku Center Bldg.

Mar. 27, 2008

21,0004.6

17,6003.3

Minami Azabu Bldg.

Jul. 14, 2008

3,760

0.8

3,050

0.6

Dec. 19, 2008

1,870

Mar. 8, 2019

171

0.4

2,380

0.4

Rokubancho Bldg.

Dec. 2, 2009

2,800

0.6

3,590

0.7

JPR Harajuku Bldg.

Dec. 25, 2009

8,400

1.8

11,1002.1

JPR Nihonbashi-horidome Bldg.

Mar. 31, 2010

5,100

1.1

6,800

1.3

JPR Sendagaya Bldg.

May 31, 2010

15,0503.3

11,9002.2

Ginza Sanwa Bldg.

Aug. 29, 2011

3,400

0.7

3,690

0.7

Otemachi Tower (Land with
Leasehold Interest)

Mar. 13, 2012

36,0007.9

51,8009.6

Science Plaza-Yonbancho Plaza

Dec. 6, 2013

2,660

0.6

3,310

0.6

Dec. 6, 2013

3,420

Jul. 30, 2014

800

0.9

6,170

1.1

Feb. 1, 2017

9,200

Apr. 4, 2017

9,200

4.0

21,4004.0

Jun. 27, 2019

5,750

1.3

6,420

1.2

Jun. 30, 2003

12,0002.6

13,8002.6

Mar. 24, 2006

4,275

0.9

4,240

0.8

Mar. 14, 2007

540

Apr. 24, 2008

2,200

0.6

2,700

0.5

Aug. 27, 2008

3,400

0.7

3,240

0.6

Dec. 15, 2016
Dec. 15, 2016

10,1003,250
245,533

2.2
0.7
53.7

11,0003,480
282,967

2.0
0.6
52.5

Shinagawa Canal Bldg.

Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.
JPR Shibuya Tower Records
Bldg.
JPR Jingumae 432

Retail, etc.

Jul. 2, 2004
Sep. 26, 2008
Mar. 25, 2015
Oct. 21, 2015
Apr. 12, 2005

BYGS Shinjuku Bldg.

Central Tokyo

Investment
Ratio
(%)

Appraisal Value at
End of Period
Appraisal
Investment
Value
Ratio
(million yen)(%)

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

JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi
Subtotal of Central Tokyo

25

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

Acquisition Price
Area

Type

Property Name

OfficeRetail, etc.
OfficeRetail, etc.

Investment
Ratio(million yen)(%)

Nov. 16, 2001

5,880

1.3

6,880

1.3

JPR Chiba Bldg.
JPR Yokohama Nihon Odori
Bldg.

Dec. 13, 2001

2,350

0.5

1,820

0.3

Nov. 16, 2001

2,927

0.6

2,340

0.4

Sep. 25, 2002

920

Mar. 28, 2013

570

0.3

2,330

0.4

Kawaguchi Center Bldg.

Feb. 13, 2004

8,100

1.8

9,940

1.8

JPR Ueno East Bldg.

Mar. 1, 2004

3,250

0.7

5,380

1.0

Sep. 30, 2005

888

Feb. 28, 2007

2,300

0.7

4,470

0.8

Rise Arena Bldg.

Mar. 22, 2007

5,831

1.3

9,510

1.8

Yume-ooka Office Tower

Jul. 10, 2007

6,510

1.4

7,220

1.3

Olinas Tower
Tokyo Tatemono Yokohama
Bldg.
Omiya Prime East

Jun. 29, 2009

31,300

6.8

40,0007.4

Dec. 27, 2010

7,000

1.5

9,630

1.8

Mar. 22, 2013

6,090

1.3

9,640

1.8

Sencity Bldg.

Mar. 27, 2020

13,8703.0

14,600

2.7

Tanashi ASTA

Nov. 16, 2001

10,2002.2

11,0002.0

Cupo-la Main Bldg.

Mar. 31, 2006

2,100

0.5

2,970

0.6

JPR Musashikosugi Bldg.

Sep. 28, 2006

7,254

1.6

5,540

1.0

Musashiurawa Shopping Square

Mar. 19, 2007

4,335

0.9

4,300

0.8

Kawasaki Dice Bldg.

Apr. 12, 2007

15,0803.3

16,300

3.0

FUNDES Ueno

Jun. 27, 2019

Tachikawa Business Center Bldg.

Subtotal of Greater Tokyo

Other Cities

Price

Arca East

Shinyokohama 2nd Center Bldg.

Greater Tokyo

Acquisition Date

Appraisal Value at
End of Period
Appraisal
Investment
Value
Ratio
(million
(%)
yen)

3,800

0.8

4,000

0.7

140,55530.7

167,870

31.2

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi
Bldg.
JPR Hakata Bldg.

Nov. 16, 2001

2,140

0.5

2,270

0.4

Nov. 16, 2001

4,150

0.9

3,580

0.7

Nov. 16, 2001

2,900

0.6

3,980

0.7

JPR Naha Bldg.

Nov. 16, 2001

1,560

0.3

2,150

0.4

Sompo Japan Sendai Bldg.

Jun. 26, 2002

3,150

0.7

4,620

0.9

Sompo Japan Wakayama Bldg.

Jun. 26, 2002

1,670

0.4

1,670

0.3

Tenjin 121 Bldg.

Jun. 21, 2002

2,810

0.6

3,640

0.7

JPR Dojima Bldg.

Jan. 23, 2004

2,140

0.5

3,530

0.7

JPR Nagoya Fushimi Bldg.

Mar. 22, 2005

4,137

0.9

3,390

0.6

Yakuin Business Garden

Aug. 8, 2012

10,996

2.4

20,1003.7

JPR Shinsaibashi Bldg.

May 30, 2005

5,430

1.2

4,670

0.9

Minami Semba Bldg.

Jan. 30, 2020

3,750

0.8

4,010

0.7

8,000
5,000
7,220

2.8

14,200

2.6

Housing Design Center Kobe

May 15, 2003
Jul. 16, 2003
Sep. 28, 2005

1.6

7,660

1.4

JPR Chayamachi Bldg.

Aug. 30, 2006

6,000

1.3

8,320

1.5

71,053

15.5

87,79016.3

457,141100.0

538,627

100.0

JPR Umeda Loft Bldg.

Subtotal of Other Cities
Total

26

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(3) Capital Expenditures
1) Planned Capital Expenditures
The following are major items of capital expenditures for renovation works, etc. planned as of the end of
the 37th fiscal period for JPR-owned real estate and entrusted real estate regarding beneficiary interests inreal estate. Furthermore, the planned construction expenses include portions that are classified as expenses
in accounting.
Planned Amount(million yen)
Property Name

Location

PurposeSchedule

Tokyo Tatemono
Yokohama Bldg.

Yokohama,
Kanagawa

Repair of exterior walls

Jul. 2020 –BYGS Shinjuku
Bldg.

Shinjuku-ku, Tokyo

1st through 3rd phases ofreinforcement of elevators

Mar. 2020 –JPR Nagoya Fushimi
Bldg.

Nagoya, Aichi

Replacement of outdoor
mechanical parking
systems

Dec. 2019 –JPR Chiba Bldg.

Chiba, Chiba

1st through 2nd phases ofreinforcement of elevators

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

JPR Ichigaya Bldg.

Chiyoda-ku, TokyoMS Shibaura Bldg.

Minato-ku, Tokyo

Gotanda First Bldg.

Shinagawa-ku,
Tokyo

JPR Umeda Loft
Bldg.

Osaka, Osaka

Tokyo Tatemono
Honmachi Bldg.

Osaka, Osaka

Minami Azabu Bldg.

Payment
Amountduring the
Total Value
Already
37th fiscal
Paidperiod
400

–

–

202

–

–

72

–

–

Aug. 2020 –Mar. 2021

71

–

–

Renovation of the entrance
hallAug. 2020 –Nov. 2020

64

–

–

Replacement of air
conditioning units

Feb. 2020 –

55

–

–

Replacement of lighting
equipment with LED lamps
on 3rd and 4th floors
1st phase of replacement of
power receiving andtransforming facilities
Cold- and hot-water pipe
replacement for air
conditioning units
Replacement of distribution
boards and replacement oflighting equipment with
LED lamps on 4th and 9th
floorsAug. 2020 –Dec. 2020

44

–

–

Aug. 2020 –Nov. 2020

37

–

–

Sep. 2020 –Dec. 2020

37

–

–

Sep. 2020 –Nov 2020

36––

Minato-ku, Tokyo

Replacement of air
conditioning units

May 2020 –Jul. 2020

34

–

–

Tokyo Tatemono
Honmachi Bldg.

Osaka, Osaka

Rooftop waterproofing

Aug. 2020 –Dec. 2020

33

–

–

JPR Ningyo-cho
Bldg.

Chuo-ku, Tokyo

Reinforcement of elevators

Apr. 2020 –Nov. 2020

33

–

–

27

Dec. 2020
Dec. 2021
Jul. 2020

Jul. 2020

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period2) Capital Expenditures during the 37th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate
during the 37th fiscal period. Among major capital expenditures, JPR conducted replacement of air
conditioning units to maintain and enhance tenant satisfaction, as well as renovation of common-use areas
with the aim of attracting new tenants, among other works. In addition, aside from these constructions,
JPR conducted construction of 618 million yen (Note), which was appropriated as expenditures for repair
and maintenance.
Property Name

Location

Gotanda First Bldg.

Construction
Expenses(million yen)

Purpose

PeriodShinagawa-ku,
Tokyo

Replacement of toilets, etc. on 1st
basement floor and 6th through 11th
floorsNov. 2019 –Jun. 2020

106

JPR Naha Bldg.

Naha, Okinawa

3rd phase of replacement of toilets
and hot-water supply rooms

Jan. 2020 –Jun. 2020

90

JPR Nihonbashi-horidome
Bldg.

Chuo-ku, Tokyo

2nd phase of replacement of air
conditioning units

Feb. 2020 –May 2020

84

JPR Ichigaya Bldg.

Chiyoda-ku,
Tokyo

Replacement of toilets on 2nd
through 7th floors

Jan. 2020 –Jun. 2020

79

JPR Naha Bldg.

Naha, Okinawa

Repair of exterior walls and rooftop

Jan. 2020 –Jun. 2020

78

Niigata Ekinan Center
Bldg.

Niigata, Niigata

Replacement of lighting equipmentwith LED lamps on 5th through10th floors

Jan. 2020 –Mar. 2020

43

Kawaguchi Center Bldg.

Kawaguchi,
Saitama

6th phase of replacement of air
conditioning units

Oct. 2019 –Mar. 2020

40

Yakuin Business Garden

Fukuoka,
Fukuoka

Other capital expenditures

Renovation of smoking rooms to
May 2020 –comply with the Health Promotion
Jun. 2020
Act
Replacement of air conditioning units, repair ofcommon areas, replacement of lighting equipment with
LED lamps, etc.
Total

38
819
1,380

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

28

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(4) Major Investment Assets
The following is the investment property with rental revenues exceeding 10% of total rental revenues of theentire portfolio of JPR for the 37th fiscal period.
<Property Name: Otemachi Tower (Land with Leasehold Interest)>
Total Number of Tenants
Rental Revenues (Note 1)
Percentage to Total Rental Revenues (Note 2)
Total Leased Floor Space (Note 3)
Total Leasable Floor Space (Note 3)
Changes in Occupancy Rate in Last 5 years (Note 2)

2
1,783,500 thousand yen
10.9%
11,034.78m2
11,034.78m2
June 30, 2020

100.0%

December 31, 2019100.0%

June 30, 2019100.0%

December 31, 2018

100.0%

June 30, 2018

100.0%

December 31, 2017100.0%

June 30, 2017100.0%

December 31, 2016

100.0%

June 30, 2016

100.0%

December 31, 2015
100.0%(Note 1) Rental revenues represent the property’s operating revenues for the 37th fiscal period, rounded down to
the nearest thousand yen.
(Note 2) The figure has been rounded to the first decimal place.
(Note 3) The total leased floor space and total leasable floor space are those as of the end of the 37th fiscal period(June 30, 2020).

29

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(5) Information Concerning Tenants
1) Overview of Lease Status by JPR as a Whole
No. of Properties
December 31, 2015
June 30, 2016

Total No. of
Tenants

62
62

Total Leasable Floor Space

Occupancy Rate

650

476,352.67m2

97.4%

661

476,345.81m2

98.1%
98.6%

December 31, 2016

63

679

477,249.40m2

June 30, 2017

62

730

477,972.54m2

98.0%

December 31, 2017

62

745

478,169.25m2

98.5%

747

478,117.02m2

98.8%
99.2%

June 30, 2018

62

December 31, 2018

62

747

478,088.25m2

June 30, 2019

63

757

480,277.86m2

98.6%

December 31, 2019

63

760

480,284.17m2

99.6%

775

486,015.99m2

99.4%
99.5%

January 31, 202064

February 29, 2020

64

778

486,014.68m2

March 31, 2020

65

851

499,285.88m2

99.6%

April 30, 2020

65

851

499,288.34m2

99.7%

May 31, 2020

65

853

499,270.13m2

99.8%

851

499,269.77m2

99.7%

June 30, 2020

65

(Note) Occupancy rates have been rounded to the first decimal place.

Furthermore, the following table shows the total number of tenants, total leased floor space and total leasable
floor space as of the end of the 37th fiscal period, as well as the total rental income for the 37th fiscal period.
Total Number of Tenants

851

Total Leased Floor Space

497,623.60m2

Total Leasable Floor Space

499,269.77m2

Total Rental Income

16,363,494 thousand yen

30

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period2) Overview of Lease Status for Respective Properties
37th Fiscal Period (January 1, 2020 – June 30, 2020)
Type

OfficeGreater Tokyo

Retail, etc.

Central Tokyo

OfficeArea

Property Name

Information on Period End Floor Space, Etc.
Total Leasable
Total Leased
No. ofOccupancy
Floor Space
Floor Space
Tenants
Rate (%)
2
2
(m )
(m )
(Note 1)

Rental Revenues(thousands of
yen)

Ratio

Kanematsu Bldg.

8,090.42

8,090.42

11

100.0

422,109

2.6

Kanematsu Bldg. Annex

2,291.13

2,291.131

100.0(Note 2)

(Note 2)

JPR Ningyo-cho Bldg.

2,802.22

2,802.22

5

100.0

94,182

0.6

Shin-Kojimachi Bldg.

3,319.37

3,319.37

17

100.0

117,301

0.7

JPR Crest Takebashi Bldg.

3,265.34

3,265.34

8

100.0

124,016

0.8

MS Shibaura Bldg.

14,468.38

14,468.38

10

100.0

469,469

2.9

Gotanda First Bldg.

4,241.22

4,241.222

100.0

133,583

0.8

JPR Ichigaya Bldg.
Oval Court Ohsaki MarkWest
Shinjuku Square Tower

4,240.37

4,240.37

10

100.0

156,057

1.0

4,088.44

4,088.442

100.0

203,274

1.2

19,266.38

19,266.38

23

100.0

432,507

2.6

BYGS Shinjuku Bldg.
Across Shinkawa Bldg.
Annex
Shinjuku Center Bldg.

15,227.80

15,170.47

23

99.6

615,956

3.8

1,253.39

1,253.39

4

100.0

37,241

0.2

8,865.71

8,688.66

35

98.0

526,427

3.2

Minami Azabu Bldg.

3,405.73

3,405.731

100.0(Note 2)

(Note 2)

Shinagawa Canal Bldg.

1,870.50

1,870.50

6

100.0

73,946

0.5

Rokubancho Bldg.

2,488.36

2,488.361

100.0(Note 2)

(Note 2)

JPR Harajuku Bldg.
JPR Nihonbashi-horidome
Bldg.
JPR Sendagaya Bldg.

4,761.51

4,761.51

9100.0

305,0141.9

5,299.88

5,299.88

5

100.0

188,907

1.2

6,177.74

6,177.747

100.0

297,727

1.8

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

1,896.69

1,896.69

9

100.0

117,673

0.7

11,034.78

11,034.78

2

100.0

1,783,500

10.9

3,325.29

3,325.29

25

100.0

117,3660.7

5,401.46

5,401.46

9

100.0

188,508

1.2

Tokyo Square Garden

5,971.73

5,932.26

45

99.3

421,164

2.6

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

3,493.67

3,493.67

6

100.0

151,792

0.9

8,076.85

8,076.851

100.0(Note 2)

(Note 2)

1,027.33

1,027.33

7

100.0

84,6400.5

2,347.81

2,347.811

100.0(Note 2)

(Note 2)

1,101.92

1,101.921

100.0(Note 2)

(Note 2)

1,665.79

1,665.79

9

100.0

200,662

1.2

1,367.56

1,367.56

6

100.0

81,695

0.5

Arca East

7,022.76

7,022.76

6

100.0

265,400

1.6

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

5,541.00

5,409.27

38

97.6

132,7120.8

6,079.74

6,079.74

18

100.0

127,8520.8

5,284.75

5,284.75

21

100.0

108,539

0.7

15,503.27

15,503.27

44

100.0

455,0202.8

6,454.84

6,454.84

10

100.0

177,964

1.1

4,588.89

4,588.89

24

100.0

151,894

0.9

JPR Ueno East Bldg.
Tachikawa Business Center
Bldg.

31

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period(Note 2)

(Note 2)

99.1

332,156

2.0

100.0

1,030,176

6.3

100.0

290,377

1.8

4

100.0

282,934

1.7

13,224.89

71

99.7

249,530

1.5

31,121.71

31,121.71

1

100.0

(Note 2)

(Note 2)

5,963.00

5,963.001

100.0(Note 2)

(Note 2)

JPR Musashikosugi Bldg.
Musashiurawa Shopping
SquareKawasaki Dice Bldg.

19,740.95

19,740.95

1

100.0

(Note 2)

(Note 2)

14,960.69

14,960.69

3

100.0

127,0410.8

12,106.71

12,106.71

31

100.0

435,792

2.7

FUNDES Ueno
Niigata Ekinan Center
Bldg.
Tokyo Tatemono
Honmachi Bldg.
JPR Hakata Bldg.

1,989.66

1,989.66

10

100.0

104,082

0.6

5,327.50

5,327.50

10

100.0

125,004

0.8

7,132.22

6,725.55

8

94.3

151,9900.9

6,577.53

6,441.55

41

97.9

171,898

1.1

JPR Naha Bldg.

3,945.18

3,863.9320

97.9

108,668

0.7

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

7,129.14

7,108.41

15

99.7

188,587

1.2

4,876.35

4,792.60

16

98.3

111,133

0.7

3,257.07

3,257.07

15

100.0

119,748

0.7

JPR Dojima Bldg.

3,918.28

3,610.13

11

92.1

132,062

0.8

JPR Nagoya Fushimi Bldg.

7,086.37

7,054.195

99.5

152,871

0.9

Yakuin Business Garden

16,654.33

16,644.71

15

99.9

553,792

3.4

JPR Shinsaibashi Bldg.

4,021.63

4,021.63

9

100.0

132,847

0.8

Minami Semba Bldg.

5,695.71

5,692.56

13

99.9

111,619

0.7

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

18,586.97

18,586.97

1

100.0

(Note 2)

(Note 2)35,444.13

35,444.13

1

100.0

(Note 2)

(Note 2)

2,478.42

2,478.425

100.0

165,4531.0

499,269.77

497,623.60

851

99.7

16,363,494

100.0

6,023.39

1

11,998.77

11,885.97

43

23,987.40

23,987.40

16

6,493.99

6,493.99

22

6,871.45

6,871.45

Sencity Bldg.

13,271.20

Tanashi ASTA
Cupo-la Main Bldg.

OfficeRetail, etc.

Other Cities

Retail, etc.

Greater Tokyo

OfficeRise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono
Yokohama Bldg.
Omiya Prime East

Total

6,023.39

100.0(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., Residential part of Science
Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg., Sencity Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple
rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., Residential part of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena
Bldg., Sencity Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by thetenants fluctuates in accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers oftenants.
(Note 2) JPR does not disclose the rental revenues and their ratio of the properties due to inevitable reasons, as JPR has not been able to obtain consent fromthe tenants or co-owners, etc. as to disclosure of rental revenues, etc.

32

Japan Prime Realty Investment Corporation (8955) Financial Report for 37th Fiscal Period

3) Ten Largest Tenants
The following table shows the ten largest tenants in terms of leased floor space as of June 30, 2020.

Rank

TenantProperty Name

Leased Floor Space Percentage to Total
at End of Period Leased Floor Space(m2)
at End of Period(Note 1)
(Note 2)

1

Tokyo Tatemono Co., Ltd

Shinjuku Square Tower
Shinjuku Center Bldg.
Tokyo Square Garden
Olinas Tower
Kawasaki Dice Bldg.
Tokyo Tatemono Honmachi Bldg.

2

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.1%

3

Seiyu GK

Tanashi ASTA

31,121.71

6.2%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.0%

5

Taisei-Yuraku Real EstateCo., Ltd.

Rise Arena Bldg.
Sencity Bldg.

19,534.26

3.9%

6

The LOFT Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

3.7%

7

Olympic Group Corporation

Musashiurawa Shopping Square

9,558.51

1.9%

8

Tower Records Japan Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

1.6%

9

Y.K. Tokyo Prime Stage

7,875.50

1.6%

10

Sompo Japan Insurance Inc.
(Note 3)7,279.46

1.5%

Otemachi Tower (Land with Leasehold
Interest)
Kawaguchi Center Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.

49,652.69

10.0%(Note 1) For co-owned properties, etc., the figure indicates the leased floor space corresponding to the equity interest held by JPR.
(Note 2) The figures have been rounded to the first decimal place. The total leased floor space at end of period in the above table is based on
the space corresponding to the equity interest held by JPR (498,415.74m2).
(Note 3) Sompo Japan Nipponkoa Insurance Inc. changed its name to Sompo Japan Insurance Inc. as of April 1, 2020.

33