JAPAN PRIME REALTY INVESTMENT CORPORATION
Presentation Material
For the 29th Fiscal Period Ended June 2016

8955

August 18, 2016
（Asset Manager）

Tokyo Realty Investment Management, Inc.

Table of Contents, Disclaimer andGlossary

Table of Contents
1. Characteristics of Japan Prime Realty Investment
Corporation (JPR)
3p
2. Portfolio Strategy

5p2-1. Medium-Term Target

6p2-2. Internal Growth Strategy

9p2-3. External Growth Strategy

13p

2-4. Financial Strategy

14p

3. Financial Results and Operating Forecasts 15P
4. Appendix

25p

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking
statements are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty
Investment Management, Inc. (TRIM) based on information currently available, and are therefore notguarantees of future performance. Actual results may differ materially from those in the forwardlooking statements as a result of various factors including known or unknown risks and uncertainties.
This material is solely for the purpose of providing information, and is not intended for the purpose ofoffering or soliciting investment, or as a means of marketing activities. Please refer any inquiries forpossible purchase of investment units or investment corporation bonds of JPR to your securities
companies.
Although JPR takes all possible measures to ensure the accuracy of the content provided in thismaterial (including references to legislation and taxation), it makes no guarantee as to the accuracy orreliability of the content. Furthermore, the content may be subject to change without prior notice.
• The photos used in this material include those of the assets other than what JPR owns or plans toacquire. Please note that for assets indicated as land with leasehold interest, JPR owns only the landand does not own any building on it.
• Unless otherwise noted, the figures indicated in this material are rounded down to the nearest
specified unit for monetary amounts and space areas, and rounded off to the nearest specified unit
for percentages and other figures. Accordingly, the sum totals of monetary amounts or percentagesof respective items may not match the sum totals of actual figures.

Acquisition price
The transaction price indicated in the sale and purchase agreement for properties owned by JPR (exclusive of expenses
related toacquisition property taxes, city planning taxes and consumption taxes)
Investment ratio
The investment ratio refers to the ratio of the acquisition price of relevant properties owned by JPR to the totalacquisition price of its portfolio.
Occupancy rate / occupancy rate based on concluded contracts
Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded contracts.
When occupancy rate for each fiscal period is indicated, it represents the average occupancy rate as of the end of eachmonth that belongs to the relevant fiscal period (period average of occupancy rate at end of month). Furthermore, it
may be described as “average occupancy rate” in order to distinguish it from “period-end occupancy rate.”
Occupancy rate based on generated rents
Total leased space excluding leased space subject to rent-free periods / total leasable space
Average unit rent
Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease contracts with tenants; forcertain properties, the figure includes common charges, etc. received by master lessees without being recorded as JPR’srevenue
Number of tenants
The number of tenants counts the parties with whom JPR has concluded lease contracts for the building floors. When asingle 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.
NOI yield(Rental revenue - real estate － expenses related to rent business ＋ depreciation) / book value (or acquisition price,depending on the case)
NOI yield is calculated using the above formula, by dividing the book value (or acquisition price) in the formula by 365
days and multiplying it by the number of business days of the relevant fiscal period.
After-depreciation yield(Rental revenue - real estate － expenses related to rent business) / book value (or acquisition price, depending on thecase)
Calculated by the same method for NOI yield
Ratio of long-term, fixed interest rate debts
Long-term interest-bearing debts with fixed interests / total interest-bearing debts
Average maturity
Weighted average calculated by dividing the remaining periods to the repayment dates and redemption dates ofborrowings and investment corporation bonds at the end of each fiscal period by the balance of respective borrowings
and investment corporation bonds at the end of each fiscal period
For borrowings with scheduled repayment in installments, the weighted average of the remaining period to thescheduled repayment dates of each installment payment in accordance with the relevant repayment amount
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 ofbusiness days for the relevant fiscal period and annualized by multiplying by 365 days / average balance of borrowings
and investment corporation bonds for each fiscal period
LTVInterest-bearing debts / total assets at end of period (based on total assets)
There are other calculation methods of LTV.
・LTV based on unitholders’ capital) = Interest-bearing debts / (interest-bearing debts + unitholders’ capital)
・LTV (based on valuation) = Interest-bearing debts / (total assets + unrealized gains or losses from valuation)
Unrealized gains or losses from valuation refer to the difference between appraisal value and book value.
NAV per unit
(Unitholders’ value + reserve for reduction entry, etc. + unrealized gains or losses) / number of units outstanding
Ratio of unrealized gains or losses(Appraisal value – book value) / book value
Cap rate
Capitalization rate by the direct capitalization method
Direct capitalization method is one of the methods to calculate the value estimated by income approach (a method toestimate the value of the target property by calculating the sum total of present value of the net operating income
which the target property is expected to generate in the future), and capitalizes the net operating income of a certain
period by using the capitalization rate.
Tokyo“Tokyo” defined by JPR as its investment area collectively refers to “Central Tokyo” and “Greater Tokyo” as defined
below, and “Other Cities” refers to other regions.
・Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
・Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama Prefectures

2

JAPAN PRIME REALTY INVESTMENT CORPORATION

1. Characteristics of Japan Prime Realty Investment Corporation (JPR)3

A J-REIT with a combined portfolio, managing office properties mainly in the Tokyo area
and urban retail properties

1. Characteristics of Japan Prime Realty
Investment Corporation (JPR)

With 14 years since listing, JPR has demonstrated the high quality of its portfolio and continued to achieve
stable growth of cash distributions
JPR aims to enhance unitholder value by conducting solid and steady asset management■ Overview of JPR and Its Portfolio, Etc.
Investment Corporation
NameJapan Prime Realty Investment Corporation (abbreviated as JPR)

Listing dateJune 14, 2002 (14 years since listing)

Fiscal period ends

June 30 and December 31 of each year

Asset Manager

Tokyo Realty Investment Management Inc. (abbreviated as TRIM)

Sponsors (shareholding
ratio)

Tokyo Tatemono (40%), Taisei Corporation (20%),
Yasuda Real Estate (20%), Sompo Japan Nipponkoa Insurance (10%)
and Meiji Yasuda Life Insurance (10%)■ Investment Ratios and Investment Areas
Retailproperties in
Other Cities

Officeproperties in
Other Cities

7.7%

9.2%
Retailproperties in
Tokyo

15.5%

Ratio of
Tokyo

67.6%

Ratio of
Tokyo

83.1%
Sendai
Niigata

Portfolio
Asset size / No. of
properties
Ratio by asset classTokyo

410.3 billion yen / 62 properties
Osaka

Office 76.8% : Retail 23.2%
Kobe*For retail properties, JPR invests only in urban retail properties (not in suburban shopping
centers, etc.)

Ratio by area

Tokyo 83.1% : Other Cities 16.9%

Major properties

The Otemachi Tower (Land with Leasehold Interest), Olinas Tower andShinjuku Center Bldg., etc.

Fukuoka
Wakayama
Naha

Finance and Credit Ratings
LTV

42.1% (based on total assets)

Ratio of long-term, fixed interest rate debts

100.0%

No. of financial institutions doing business with24

Issuance of investment corporation bonds

22 series to date

Credit ratings

AA- (R&I) ・ A (S&P)

1. The data and figures are as of June 30, 2016.
2. Ratio by asset class and ratio by area represent investment ratios.
Furthermore, the asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016. After theconversion, the ratio by asset class is changed to 78.1% for office properties and 21.9% for retail properties, and the ratio by area ischanged to 10.5% for office properties in Other Cities and 6.4% for retail properties in Other Cities..

NagoyaOffice properties inTokyo

Retail properties inTokyo

Office properties in
Other Cities

Retail properties in
Other Cities(Major investment properties)

The Otemachi
Tower(Land with Leasehold Interest)

Olinas Tower

Shinjuku Center
Bldg.

Yakuin Business
GardenYurakucho
ItociaKawasaki Dice
Bldg.

4

JAPAN PRIME REALTY INVESTMENT CORPORATION

2. Portfolio Strategy

52-1. Medium-Term Target

3-Year Quantitative Target

Achieve growth and stability of distribution per unit by raising the portfolio yield■ Medium-Term Target of Distribution per Unit (DPU)■ Medium-Term Target of After-depreciation yield• Realize stable growth of DPU by 750 yen (up 12.5%) in 5 fiscal periods
compared with the latest bottom.
• DPU of 7,000 yen, a target set in the 27th period, expected to beattained in the 30th period.
• Aim to achieve DPU of 7,500 yen, higher than the record high sincelisting, as growth target for the future.

• Work to increase earnings centering on internal growth, with the growthtarget for portfolio yield set at 4.2%.
• Continue focused investments in Tokyo and aim to enhance the qualityof portfolio through asset replacement.
• Emphasize after-depreciation yield (based on book value), taking returnof profits to unitholders and re-investment efficiency, etc. into account.

(yen/unit)

Distribution per unit(%)

10,0008,000

After-depreciation
yield (reference)

NOI yield (based on book value)

7

Growth rate: 4.8%
(annual average)

7,500

6
5.2

5

6,756

6,000

4.9
4.5

4

6,006

3

4,000

3.6

3.9

4.2

2
2,000
1

0

0
24th Period (Dec. ’13)

1.

2.

29th Period (Jun. ’16)
(actual result)

Medium-term target

The distribution per unit and the after-depreciation yield as the medium-term target are the management target set by the asset management company(TRIM; the same applies hereafter), and there is no guarantee that the figures are achieved.
The after-depreciation yield as medium-term target has been set as the earnings target, and is not necessarily linked to distribution per unit.

24th Period (Dec. ’13)

29th Period (Jun. ’16)
(actual result)

Medium-term target62-1. Medium-Term Target

Business Environment Perception and Present Status/Future Outlook of the Portfolio

While making steady progress in portfolio strategy, paying close attention to the impact ofchanges in the external environment
Implement measures focused on “continuous raising of rents,” “asset replacement” and “debt financing that emphasizes stability.”• Negative interest rate appears to stay for a longtime
Borrowing interest rate dropped by around 30
basis points after the policy was introduced.
• Demand for investment corporation bonds still
remains limited.
• Closely watch the lender trends in accordancewith the monetary policy going forward.

• Only made additional acquisition of equity
interests through preferential negotiations inrecent years, following the continued policy ofvigorously selective investments.
• Progress made in negotiations for asset
replacement in the pipelines.

• Further lengthened maturity and loweredinterest rates
29th period: 9.3 years (up 4.6 years), 0.66%(down 0.54 percentage points).
• Lowered the maximum repayment amount foreach fiscal period to 10 to 15 billion yen by
further diversifying repayment dates.

• Raise rents upon tenant replacement, on topof upward revisions upon contract renewal,
with the gap in actual rents eliminated.
• Increase the occupancy rates based on
generated rents for office properties (29thperiod: 94.7%).
• Realize latent revenue through reduction ofrent-free periods.

• Continue the policy of vigorously selective
investments focused on Tokyo.
• Realize asset replacement that should help
improve the quality of portfolio• Continue investigations on asset replacement
through sale of land for development, etc..

• Promote debt financing with a focus on longterm stability rather than cost reductions over ashort term.
• As JPR has implemented the basic strategy ofborrowing long-term, fixed interest rate debts,
there is still room for lowering interest rates
even if maturity is further lengthened in the
future refinances.

• Supply of office properties in Tokyo has gradually
increased, but supply volume is levelling off due topostponement of projects, etc.
• Despite cautious attitudes appearing in somecompanies, the demand trend shows no majorchange and remains strong.
• Vacancy rate is unlikely to exceed 5% over a
medium term and assumed to remain at around 3 4%.

Results and present• Property prices are nearing the ceiling zone.
• Cap rates in regional cities have decreased,
narrowing the gap with Tokyo.
• With few blue-chip properties on sale, theweight of sponsor pipelines has increased interms of information with the quality andprice levels worth investigating.

Business environment

Financial Strategy

statusExternal Growth Strategy

perception

Internal Growth Strategy• Period-on-period increase in revenue through internal
growth has continued since the 25th period.
• Rent revenue from existing properties in the 31st
period is estimated to increase by 430 million yen
from the 29th period.
• Occupancy rate based on generated rents increased(96.5% for the 29th period, up 1.3 percentage points
period-on-period) through reduction of rent-free
periods and down time.

Future outlook7

2-1. Medium-Term Target

Medium-Term Strategy

Implement concentrated and well-balanced strategies to pursue stable growth of
distribution per unit
Convert the current growth potential to actual growth and stability in the future.
Strategy for Growth

Strategy for Stability

Increase occupancy
rate based on
generated rents

Continue raising
rents

Enhance property
competitivenessAcquire blue-chipproperties

Sell low-growthproperties

Diversify tenants

Greatly lengthen
maturity of debts• Reduce downtime and rentfree periods through flexible
leasing.

• Expand the rate of upward
rent revisions upon contract
renewal.
• Raise the rate of increase inrents upon tenant
replacement.

• Make prior investments andconduct value enhancement
works intended to improvecustomer satisfaction.
• Reduce running costs byenhancing efficiency andsaving energy.

• Continue discussions overthe sponsors’ pipelines.
• Firmly keep the acquisition
yields.

• Sell properties with low
expected growth rates in atimely manner for asset
replacement.
• Reduce the number ofproperties with unrealized
losses.

• Reduce risks of large andconcentrated move-outs.
• Take measures for longterm, stable leases withtenants who lease entire
buildings.

• Emphasize long-term
stability rather than cost
reductions in a short term.
• Reduce refinancing risks bylowering repayment
amounts for each fiscal
period.

Concentrated and well-balanced strategies that assume stable growth of distribution per unit

Business bases that bolster the stable growth strategy
Property quality to realizeinternal growth×Management ability of the AM and PM companies
working together and in coordination(cooperation system with sponsors engaged in development)

×

Fund procurement ability withcredit rating of AA‐(by R&I)

Aim to enhance the quality of the portfolio that should achieve a virtuous cycle of long-term growth and heighten tolerance
against changes in the business environment
1. AM represents asset management, and PM represents property management.

8

Occupancy Status

2‐2. Internal Growth Strategy

Increase occupancy rate based on generated rents by reducing rent-free periods and downtime■ Occupancy Rate Based on Concluded Contracts and Occupancy
Rate Based on Generated Rents■ Move-Ins/Move-Outs and Downtime/Rent-Free Periods• Occupancy rate based on concluded contacts is expected to rise from the
97% level to the 98% level.
• With the leasing environment gradually shifting to conditions in which
contracted rents can be raised even if rent-free periods are shortened,
occupancy rate based on generated rents is expected to rise to the 97%
level.

• Kanematsu Bldg., Kanematsu Bldg. Annex and Gotanda First Bldg.,
which are properties subject to leasing strengthening, achieved fulloccupancy.

99

98.2
96.9

97.0

97.2

97.5

10,105

98.3

97.8
97.4

-10,392

97

97.3

96

-9,654

97.5

96.5
95.8

95

30th

29th

Move-outs

98

Move-ins

13,66329th

30th(forecast)

95.7

Period-end
occupancy
rate

Kanematsu Bldg.

2,427m2

100.0%

Kanematsu Bldg. Annex

2,291m2

100.0%

Benetton Shinsaibashi Bldg.

3,366m2*87.6%MS Shibaura Bldg.

1,960m2

100.0%

Arca East

1,032m2

100.0%JPR Dojima Bldg.

-1,962m2

50.1%

MS Shibaura Bldg.

-1,960m2

86.4%

Arca East-1,032m2

85.3%

Benetton Shinsaibashi Bldg.

-5,303m2*87.6%-629m2

88.1%

Move-outs (m2)
29th

100

93
0

Move-ins

Floor
space

Property name

PeriodOccupancy rate based on concluded contracts
Occupancy rate based on generated rents

(%)

94

(Move-in/move-out spaces and properties
with major move-ins/move-outs)

30th

JPR Nihonbashihoridome Bldg.

*For Benetton Shinsaibashi Bldg., the indicated occupancy rate is based on
the lease agreements, etc. succeeded by the end tenants after the
master lease with a tenant who leased the entire building was cancelled.

95.2

94.5
24th

• Average rent-free period: 2.4 months, average downtime: 7.9 months (29th period)
94.3
25th

26th

27th

28th

29th

(Average rent-free period)(Average downtime)

30th

31st

(months)(months)(forecast)(forecast)

4

12

3

(Occupancy rate based on concluded contracts by asset class / %)Office

95.4

95.7

95.9

96.2

96.1

96.8

97.5

97.6

Retail

99.7

99.6

99.6

99.8

100.0

99.9

99.6

99.8

2
1
0

6

3.4

27th

2.3

2.4

28th

29th

30th
(forecast)

1. The figures for the occupancy rate based on concluded contracts and the occupancy rate based on generated rents for the 30th fiscal period are based on the contracts confirmed at present (including newcontracts concluded and cancellation notices received), and the figures for the 31st fiscal period include some assumed contracts in addition to the assumptions for the 30th period.
2. Average rent-fee period indicates the average of the rent-free periods set in new lease contracts concluded for each fiscal period.
3. Average downtime indicates the average period from move-outs of previous tenants to move-ins of new tenants for the same rental spaces, based on the fiscal periods in which the new tenants moved in.

0

12.2

27th

8.5

7.9

28th

29th

30th
(forecast)9

2‐2. Internal Growth Strategy

Status of Rent (1)Continue upward revision of rents and raising of rents upon tenant replacement■ Rent upon Tenant Replacement■ Rent Revisions(increase/decrease of rent through tenant replacement)

Upward revision amountof monthly rent

29th period+10.4 million yen

Ratio of contracts withupward revision

34.0%

+8.8%

(compared with the number ofcontract renewal)(compared with rent includingcommon charges)(Revised amount of monthly rent)(million yen)

Increase amount ofmonthly rent upon tenant
replacement

Rate of upward revision

29th period+4.5 million yen

Ratio of tenant
replacement withincreased rent

Rate of increase inrent upon tenant
replacement

70.6%

+8.0%

(compared with the number oftenant replacement)(compared with rent includingcommon charges)(Monthly rent upon tenant replacement)

Upward revision

Downward revision

Upward revision(JPY million)

20

Downward revision

10

15
5

10
5

15.3
0.8

0
-5

6.0

5.9

-1.5

-4.7

-0.9

10.4

9.9

1.6

0.4

4.5

4.2

0
-0.4

-3.5

-13.5

-6.2

-6.0

27th

28th

-0.3

-0.9

-5

-10
-15
25th

26th

27th

28th

29th

-10

30th
(forecast)(Rate of change in rent upon replacement for major properties: 29th and 30th periods)

No. of revision cases (left axis)
Ratio of upward revision (right axis)

No. of upward revision cases (left axis)

200
29.8
100
7.3

(%)

40

34.0
25.6

12.5
27th

28th

29th

30th
(forecast)

1. Revised amount of monthly rent = Monthly rent after revision – monthly rent before revision (including common charges)
The increased amount for the 27th period includes the revised portion of the CPI-linked land rent of The Otemachi Tower (Landwith Leasehold Interest). For the 30th period, only the contracts confirmed at present have been recorded.
2. Ratio of upward revision = Number of cases with upward revision / number of cases with contract renewal
Rate of upward revision = Upward revision amount of monthly rent / monthly rent before revision (including common charges)

Rate of changes in rent upon replacement

40

37.0
18.5

0
0

26th

(%)

20

0
25th

30th
(forecast)(Ratio of upward revision)(cases)

29th

-10

29.2

20.7

2.8

5.6

10.2
-1.7

BYGS
Shinjuku
MS Shibaura JPR Harajukiu Kanematsu
Shinjuku Bldg. Center Bldg.
Bldg.
Bldg.
Bldg.

Kanematsu
Bldg. Annex

YakuinBusiness
GardenOlinas Tower

3. Monthly rent upon tenant replacement = Monthly rent after tenant replacement for the same rental spaces – monthly
rent before tenant replacement (including common charges). The figures are recorded based on the fiscal period inwhich tenant replacement takes place. The figure for the 30th period is based on contracts confirmed at present
4. Ratio of tenant replacement with increased rent = Number of tenant replacement with increased rent / number oftenant replacement. Rate of increase in rent upon tenant replacement = Increase amount of monthly rent upontenant replacement / monthly rent before tenant replacement (including common charges)

10Status of Rent (2)2‐2. Internal Growth Strategy

Use target rents with the intention to raise rents and continuously raise average rent
■ Target Rents■ Average Rent

• JPR sets target rent for each fiscal period in order to raise rents.
• The target rent for the 30th fiscal period is rent 1.9% higher period-onperiod (up 8.0% compared with the base rent).
(yen/tsubo)• The average unit rent of the portfolio for the 29th period increased by
1.2% (from the end of the 28th period).
• The rate of increase over the most recent past six fiscal periods is
expected to be 2.4% (compared with the end of the 24th period) .

Target rent (figures represent period-on-period comparison)

Average of the portfolio (figures represent
comparison with the end of the preceding period)(yen/tsubo)

18,00014,700

+1.9%

+0.3%

+2.7%
17,00014,600

+1.5%

+1.2%

+1.5%
+2.9%

14,50016,000+0.4%
14,400
25th

26th

27th

28th

29th

Base rent

Target rent30
+26.8%

14,200(figures represent comparison with base rent)

14,1000
25th+27.8%

26th

27th

28th

29th

30th
(forecast)20+18.9%

14.3

14.3

14.4

14.4

14.6

14.6

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

Period-on-period

+0.2%

+0.3%

+0.4%

-0.0%

+1.2%

+0.3%

Assumption on asame store basis

14.3

14.3

14.4

14.4

14.5

14.6

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

Period-on-period

-0.0%

+0.0%

+0.6%

+0.2%

+0.4%

+0.6%

Portfolio

10

-0.0%

14,30030th(Comparison between contracted rent and target rent for individual properties: 29th and 30th periods)
(%)

+0.3%
+0.2%

0
15,000+10.7%
+3.6%

+5.6%

+11.5%+7.7%

0
Shinjuku Center Bldg.

Olinas Tower

Yakuin Business Garden

1. Base rent refers to the rent level (the lowest limit) set for each fiscal period as the base for inviting new tenants and revising
rents for existing tenants.
Target rent is the rent level set for each fiscal period in order to raise rents. Target rent is used as a guideline in conducting
negotiations on rents, and JPR makes it a policy to set the base rate as the lowest limit (target rent ≧ base rent). For the
30th period, the target rent is applied to 47 properties, excluding some retail properties, of the portfolio.

2. Assumption on a same store basis represents the average unit rent of the properties JPR has owned continuously since the24th period, estimated on the condition that vacancies at end of each fiscal period are fully occupied at the base rent set foreach fiscal period.

11

Possible Internal Growth in the Future

2‐2. Internal Growth Strategy

Continue to raise rents going forward in accordance with the decrease in actual rent gap
Difference of 89 million yen in the coming two years between the market rent and the revised monthly rent that is lower than the target rent
■ Sum Total of Period-on-Period Changes in Rent Revenue(existing properties)■ Status of Rent Levels by Fiscal Period with
Contract Renewal (office properties)• Sum total of the period-on-period changes in rent revenue from existing properties
between the 25th period, when internal growth took a turn to an increase, and the 31st
period is anticipated to be an increase of 580 million yen• JPR’s internal growth, which had started with an increase in the occupancy rate basedon concluded contracts, went through an increase and continuation of upward revisionof rents and an increase in the occupancy rate based on generated rents, and has
shifted to a phase of raising rents upon tenant replacement.

• In accordance with an increase in the market rent, the ratio of existing rents thatare lower than the market rent and the target rent set by JPR has increased• Although JPR has many contracts with existing rents and new rents that are
higher than the market rent, as a rule, JPR shall reviews contracts with rent
levels that are lower than the target rent. JPR will aim to further raise rents by
taking the opportunity of future contract renewal.

Phases of Internal GrowthDifferences of revised monthly rents in the coming four fiscal periods (2 years)

Increase in theoccupancy rate
based onconcluded
contracts(million yen)

Increase andcontinuation of
upward revisionof rents

Increase in theoccupancy rate
based ongenerated rents

Move-ins/move-outs(figures in parenthesis represent comparison with the compiled monthly rents)

Increase in raising rents upontenant replacement
Expand at a pace larger than
upward revision of rents upon
contract renewal

Rent revision500(6.3%)

39.3 million yen(2.8%)

Lower than market rent

Higher than market rent (new contract)

Higher than market rent and less than target rent

Higher than target rent

60
(annual average, 25th – 31st period)

50(Reference) Based on actual revenue including cancellation
penalty, etc.: +1.9% (annual average, same)

326

299

40
30

300
246

200

0

Higher than target rent

89.3 million yen

Aggregate: 581

Growth rate of rent revenue: +1.3%

400

100

(including rent lower than and higher than market rent)(million yen)

700
600

Lower than target rent

24

32

97

82

79

237

190

281

82

20
10

-41

-3

0

-100

25th

26th

27th

28th

29th

30th

31st

(forecast)(forecast)

1. Sum total of period-on-period changes in rent revenue (existing properties) indicates the aggregate full-period changes on a periodon-period basis of rent revenue from existing properties due to move-ins/move-outs and rent revisions. The figures for the 30th
period are based on confirmed contracts including new contracts concluded and cancellation notices received), and the figures forthe 31st period include some assumed contracts in addition to the assumptions for the 30th period.

30th

31st

32nd

33rd

34th

2. Market rent represents the market rent level (median value between the upper and lower limits) appraised by CBRE K.K. forthe office properties owned by JPR. The difference of revised monthly rents in the respective categories represents acompilation of the monthly difference amount between the existing rent and market rent, etc.. For the rent lower than target
rent (sum total), the monthly difference amount between the existing rent and target rent is compiled. New contract covers
the revised rent in the next renewal for the new contracts concluded within the past 3 years.

12Sell Low-Yielding Properties and continue vigorously selective investments

2‐3. External Growth Strategy

Improve quality of the portfolio through selling of assets
Sell properties with unrealized losses on the assumption of stable growth in cash distributions, and aim to enhance
growth potential by realizing asset replacement■ Background and Plan of Asset Sale

■ Pipelines for New Acquisition and Asset Replacement

Background• Select a property with no prospect ofimproving yields and achieving expected
growth going forward• Likely to be sold at higher-than-assumed
prices due to an increase in real estate prices• In addition to increased revenue throughinternal growth, such one-time income likecancellation penalty, etc. makes it possible toabsorb loss on sale and avoid a drop in cash
distributions• Aim to enhance the quality and growthpotential of the portfolio by realizing asset
replacement

1. Properties developed and owned by the sponsors(After-depreciation yield after adjustments ofeach property in the portfolio)(%)

Central Tokyo

Greater Tokyo

Other Cities

9• Continue and proceed with discussions on acquiring properties throughwarehousing arrangements or developed by the sponsors• Work to secure opportunities for asset replacement by selling land fordevelopment, etc.
2. Equity interests held by other right holders for co-owned properties, etc.
• Work to secure opportunities of acquisitions through negotiated deals bytaking advantage of preferential negotiation rights, etc. granted to JPR

6

3. Properties owned by third parties• Work to secure acquisition opportunities through negotiated deals by looking
for a variety of information channels

30Continue investigations to replace
properties with no prospect of improving
yields and achieving expected growth

Plan(Number of cases with property information obtained and investigated)
Number of caseswith information obtained
Number of caseswith information investigated

24th

25th

26th

27th

28th

29th

108

119

84

84

64

66

51

36

35

40

19

20

• Ratios of office properties in Tokyo and retail properties rising as investigation subjects• Negotiate with multiple parties that haveexpressed intention to buy• Assume sale price that is significantly higher
than the appraisal value• Discussions under way on terms andconditions of sale, etc., targeting to sell theproperty by the end of the 30th period
1. The loss on sale of real estate, which is included in the assumptions of theoperating forecast for the 30th period has been calculated based by using theassumed sale price based on the sale policy, and may be subject to change
depending on the final agreement with the buyer.
2. For the after-depreciation yield after adjustments, figures estimated on thebasis of the occupancy rates in normal operation and the rate of rent increase,etc., which were assumed by TRIM, have been plotted.

(Assumed sale price)
(%)

150

Assumed to be significantly higher
than the appraisal value(Ratios of number of cases with information obtained(outer ring) and information investigated (inner ring))
Retail properties
in Other Cities

Retail properties
in Tokyo

100

6%
5%

Officeproperties inTokyo

24% 25%
Officeproperties in
Other Cities

5%

50
0

Sale price(assumed)

Appraisal value(29th period)

Appraisal value(lowest value sinceacquisition)(Ratio of cases with information
obtained by channel)

23%

65%

47%

18%

Properties owned by, orbased on the information
from, the sponsors, etc.
12 properties / approx. 50
billion yen

Properties owned bythird parties, etc.

82%

13

Debt Financing with a Focus on Long-Term Stability

2‐4. Financial Strategy

Simultaneously achieve longer and more diversified maturity as well as reduced interest costs
Refinance results in the 29th period: maturity extended by 4.6 years, interest rate decreased by 0.54 percentage points■ Changes in Major Financial Indicators■ Simultaneously Achieve Longer Maturity and Reduced Interest Costs• With the basic policy of setting LTV at 50% or lower, work to control it at
no higher than 45% as the target for the moment• With the basic policy of borrowing long-term debts at fixed interest rates,
work to set the maturity period of at least 8 years as a rule

(Refinance results for the 29th period)• Borrowing interest rate dropped significantly due to the impact ofnegative interest rates
Average maturity (top)28th Period(Dec. 2015)

29th period

ChangeAfter refinancing
Average maturity+4.6 years

Beforerefinancing

Afterrefinancing(Status of Borrowings by Fiscal Period)0

New debts

10 billion yen

14 billion yen+4 billion yen

Average maturity

7.8 years(5〜9 years)

9.3 years(8〜10 years)+1.5 years

Average borrowinginterest rate

Average borrowing interest rate

0.79%
(0.49〜0.97%)

0.66%(0.51〜0.80%)-0.13%pt

percentage points

2

4

Average borrowing interest rate (bottom)

6

8

10

4.7 years

12 ( years)

1.20%
0.66%

9.3 years

-0.54

0.0

0.2

0.4

0.6

0.8

1.0

1.2 (%)(Status of entire interest-bearing debts)
Total interest-bearing debts

176.2 billion yen 176.1 billion yen-0.1 billion yen(Planned repayment at maturity in the six periods since the 30th period)• Room for reduction by 60 basis points on average compared with the latest results

Average maturity

4.0 years

4.2 years+0.2 years

Average debt cost

1.19%

1.16%

-0.03%pt

Ratio of long-term, fixed interest
rate debts

99.4%

100.0%+0.6%pt(100 million yen)

LTV (based on total assets)
Acquisition capacity(maximum LTV of 50%)
Acquisition capacity(maximum LTV of 45%)

42.1%

42.1%

－

66.1 billion yen

66.4 billion yen+0.3 billion yen

022.3 billion yen+0.3 billion yen

70

Average debt
cost

50

195
130

51
30th

Payment atmaturity

22.0 billion yen

Long-term borrowings

50
100(Status of LTV)

Investment corporation bonds

200

31st

32nd

20

83

81

91

33rd

34th

35st

12.1

19.5

18.0

13.3

10.1

9.1

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

1.1%

1.3%

1.0%

1.1%

1.0%

1.8%

1. Acquisition capacity represents an estimate figure for the debt procurement capacity when the LTV (based on total assets) is set at the respective maximum values indicated above.

14

JAPAN PRIME REALTY INVESTMENT CORPORATION

3. Financial Results and Forecasts of Financial Results

153. Financial Results and Forecastsof Financial Results

Overview of Financial Results for the 29th Fiscal Period (period-on-period comparison)

Results of the 29th fiscal period ended June 2016
Distribution per unit: 6,756 yen (up 168 yen, or up 2.6%, period-on-period)
With a steady progress in internal growth, an increase in rent revenue from existing properties contributed to higher cash distributions

28th Period

29th Period(Dec. 31, 2015)(Jun. 30, 2016)

Operating revenue

14,105

14,246+141

Operating expenses

7,273

7,372

+98

Operating income

6,831

6,874

+42

Increase in rent revenue (existing properties)
Contribution of rent revenue (full-period operation of property acquired in 28th
period)Increase in cancellation penalty, etc. and income equivalent to expenses forrestoration to original condition

Item

Revenueand profit(million yen)

Cash distributions(yen)

Operatingindicators(million yen)

ChangeMajor Factors of Period-on-Period Changes
Net income+147*Impacts on net income indicated by plus and minus

Rental income - real estateNon-operating income

8

68

+59

Non-operating expenses

1,093

1,045

-48

Ordinary income

5,746

5,897

+150

Decrease in incidental income

Net income

5,749

5,896

+147

Increase in other income(per unit)

6,588

6,756

+168

(JPY mn)

+36
+180
+15
+52
-109
+2

Decrease in utilities expenses+110(Reference) Improve in the balance of utilities expenses (incidental income‐utilities expenses)
Increase in property and other taxes (including an increase due to property
acquisition)
Increase in repairs and maintenance excluding expenses for restoration tooriginal condition-142

Increase in other expenses

-24

NOI

9,427

9,473

+46

NOI yield (book value)

4.8%

4.9%

+0.1%pt

Rental income - real estate

7,552

7,588

+36

After-depreciation yield(book value)

3.8%

3.9%

+0.1%pt

Depreciation

1,875

1,885

+10

Capital expenditures

846

772

-73

Repairs and maintenance

270

420

+149

Increase in settlement of management association accounts+51

Average occupancy rate

97.4%

97.8%

+0.4%pt

Increase in settlement of management association accounts+38

Period-end occupancy rate

97.4%

98.1%

+0.7%pt

Other changes in non-operating and extraordinary income+13

Non-operating and extraordinary income

+0
-48

+104

1. For distribution per unit, JPR reversed part of the retained earnings brought forward that had been internally reserved and delivered it, on top of net income per unit, in order to minimize the burden to unitholders incurred by accrual of corporate i ncome tax, etc.

16

3. Financial Results and Forecastsof Financial Results

Overview of Financial Results for the 29th Fiscal Period (compared with forecasts)

Results of the 29th fiscal period ended June 2016
Distribution per unit compared with the forecast at beginning of period: up 126 yen (up 1.9%)
On top of an increase in rent revenue, such factors as improvement in the balance of utilities expenses contributed

Revenueand profit(million yen)

Cash distributions(yen)

Operatingindicators(million yen)

Major Factors of Changes from Forecasts

29th Period

29th Period(Forecast)(Result)

Operating revenue

14,202

14,246+44

Operating expenses

7,393

7,372

-21

Operating income

6,808

6,874

+66

Increase in rent revenue (existing properties)
Contribution of rent revenue (full-period operation of property acquired in 28th
period)Increase in cancellation penalty, etc. and income equivalent to expenses forrestoration to original condition

+49

Item

ChangeNet income+107(JPY mn)*Impacts on net income indicated by plus and minus

Rental income - real estate

+53
+42

38

68

+29

Non-operating expenses

1,056

1,045

-11

Ordinary income

5,789

5,897

+107

Decrease in incidental income-54

Net income

5,788

5,896

+107

Increase in other income+7(per unit)

6,630

6,756

+126

Non-operating income

NOI

9,424

9,473

+49

NOI yield (book value)

4.8%

4.9%

+0.0%pt

Rental income - real estate

7,535

7,588

+53

After-depreciation yield(book value)

3.9%

3.9%

+0.0%pt

Depreciation

1,888

1,885

-3

Capital expenditures

950

772

-178

Repairs and maintenance

330

420

+89

Average occupancy rate

97.4%

97.8%

Period-end occupancy rate

97.3%

98.1%

Decrease in utilities expenses(Reference) Improve in the balance of utilities expenses (incidental income‐utilities expenses)
Increase in property and other taxes (including an increase due to property
acquisition)
Increase in repairs and maintenance excluding expenses for restoration tooriginal condition

+0

+101
+46
-4
-45

Increase in other expenses-43

Non-operating income+41

Increase in settlement of management association accounts+20+0.4%pt

Decrease in interest expenses on loans and investment corporation bonds+11+0.8%pt

Other changes in non-operating income+9

1. Forecasts of financial results for the 29th period are the figures announced on February 12, 2016, based on the following assumptions:
Investment properties owned: Total 62 properties (end of 28th period (Dec. 2015)), average occupancy rate: 97.4% (based solely on confirmed contracts including new contracts and cancellation notices), LTV (based on total assets): 42.1% (end of 29th period)17

3. Financial Results and Forecastsof Financial Results

Forecasts of Financial Results for the 30th Fiscal Period (compared with 29th period)

Forecast of the 30th fiscal period ending December 2016
Distribution per unit: 7,000 yen (up 244 yen, or up 3.6%, from 29th period actual results)
Rent revenue from existing properties will continue to increase significantly, following an increase in the 29th period
Distribution per unit will continue to grow stably, with loss on sale of real estate properties absorbed by temporary income of cancellation penalty, etc.

Item

Revenueand profit(million yen)

Cash distributions(yen)

Operatingindicators(million yen)

29th Period

30th Period (Forecast)

Change from 29th
results

Operating revenue

14,246

15,055+808

Operating expenses

7,372

7,925

+553

Operating income

6,874

7,129

+255

Major Factors of Changes from the 29th Period Results

Net income+214(JPY mn)*Impacts on net income indicated by plus and minus

Rental income - real estate
Increase in rent revenue (existing properties)

+581
+238

Lack of rent revenue (property assumed for sale in 30th period failing tocontribute for the period)
Increase in cancellation penalty, etc. and income equivalent to expenses forrestoratioon to original condition

+495
+110

68

2

-65

Non-operating expenses

1,045

1,020

-24

Ordinary income

5,897

6,111

+214

Increase in incidental income

Net income

5,896

6,111

+214

Decrease in other income-7(per unit)

6,756

7,000

+244

Increase in utilities expenses-111(Reference) Worsening of the balance of utilities expenses (incidental income‐utilities expenses)
Increase in repairs and maintenance due to implementation of planned valueenhancement works ahead of schedule-60

Increase in other expenses-54

Non-operating income

-29

NOI

9,473

10,058+584

NOI yield (book value)

4.9%

5.1%

+0.2%pt

Rental income - real estate

7,588

8,170

+581

After-depreciation yield(book value)

3.9%

4.2%

+0.3%pt

Depreciation

1,885

1,888

+3

Capital expenditures

772

995

+222

Repairs and maintenance

420

480

+60

Average occupancy rate

97.8%

98.2%

+0.4%pt

Lack of settlement of management association accounts-52

Period-end occupancy rate

98.1%

98.4%

+0.3%pt

Decrease in interest expenses on loans and investment corporation bonds+20

Gain or loss on sale of realestate properties

Non-operating income-1-299 (due to assumed property sale in 30th period, etc.)-40

Other changes in non-operating income-9

1. Forecasts of financial results for the 30th period are based on the following assumptions:
Investment properties owned: Total 61 properties (assuming a decrease of 1 property planned for sale from the properties owned at the end of 29th period), average occupancy rate: 98.2% (based solely on confirmed contracts including new contracts and cancellation
notices), LTV (based on total assets): 42.0% (end of 30th period)18

3. Financial Results and Forecastsof Financial Results(Reference) Overview of Rental income - Real Estate, Etc. for the 31st Fiscal Period(compared with forecast for the 30th period)

Forecast of the 31st fiscal period ending June 2017
Rental income – real estate, etc.: -24 million yen (compared with the 30th period)
Will be impacted by the lack of cancellation penalty, etc. accruing in the 30th period
With the upward trend of rent revenue continuing, JPR aims to achieve a period-on-period increase in cash distributions by further raising rents andcontrolling costs
30th Period (Forecast)

31st Period (Forecast)Item
Rental revenue - real estate (a)Revenueand profit(million yen)

Expenses related to rent
business (b)Gain on sale of real estate1.
2.

15,054

14,391

-662

6,884

6,545

-339

0

-

-0

Loss on sale of real estate

299

-

-299

Rental income - real estate,
etc.

7,871

7,846

-24

10,058

9,727

-330

NOI

Operatingindicators(million yen)

Change from 30th
forecasts

NOI yield (book value)

5.1%

5.0%

-0.1%pt

Rental income - real estate (a‐b)
After-depreciation yield(book value)

8,170

7,846

-323

4.2%

4.0%

-0.1%pt

Depreciation

1,888

1,880

-7

Capital expenditures

995

782

-212

Repairs and maintenance

480

265

-215

Average occupancy rate

98.2%

98.3%

+0.1%pt

Period-end occupancy rate

98.4%

97.6%

-0.8%pt

Major Factors of Changes from the 30th Period Forecasts
Rental income - real estate, etc.

-24

(JPY mn)*Impacts on net income indicated by plus and minus

Rental income - real estate
Increase in rent revenue (existing properties)

-323
+20

Lack of rent revenue (property assumed for sale in 30th period failing tocontribute for the period)
Lack of cancellation penalty, etc. and income equivalent to expenses forrestoration to original condition-622

Decrease in incidental income-54

Increase in other income+2

Decrease in utilities expenses

+67

-9

(Reference) Improvement of the balance of utilities expenses (incidental
income‐utilities expenses)
Decrease in repairs and maintenance due to implementation of planned valueenhancement works ahead of schedule in the 30th period+215

Decrease in other expenses

+55

+13

Gain or loss on sale of real estate +299 (lack of loss assumed for the 30th period)

Rental income - real estate, etc. refers to income obtained by adding or subtracting gain or loss on sale of real estate to and from rental income - real estate.
Rental income – real estate, etc. for the 31stt period is based on the following assumptions:
Investment properties owned: Total 61 properties (properties assumed to be owned through the end of 30th period), average occupancy rate: 98.3% (including some assumed contracts in addition to the assumptions for the 30th period)

19

3. Financial Results and Forecastsof Financial Results

Changes in Rental Business Profits and Gain or Loss on Sale of Real Estate

Rental income - real estate for the 31st fiscal period will increase by 294 million yen,or up 3.9%, from the 29th fiscal period (over 3 fiscal periods)
Item
Rental revenue - real estate
Rent revenue (fixed income)Rents and common charges
Land rents
Other fixed income
Other rental revenue (variable income)

Incidental income
Cancellation penalty, etc.

Rental businessprofits (million yen)

28th Period(Dec. 31, 2015)
14,105
13,223
11,267
1,581
375
881
778
37

29th Period(Jun. 30, 2016)14,246
13,42011,461
1,581
377
826
668
83

30th Period (Forecast)(Dec. 31, 2016)

31st Period (Forecast) 31st Period (compared with 28th Period)(Jun. 30, 2017)
Amount of Change%

15,054
13,62911,669
1,581
379
1,425
778
389

14,391
13,64011,677
1,581
381
751
724
-

+286
+416
+410
+5
-129
-53
-37

+2.0
+3.1
+3.6
+1.4
-14.7
-6.9
-100.0

Income equivalent to expenses for restoration tooriginal condition

36

43

233

-

-36

-100.0

Other variable income

29

31

24

27

-1

-6.4

4,678

4,773

4,996

4,664

-13

-0.3

531
876
2,019
28
270
228
581
142
9,427
1,875
6,553
7,552
7,552

530
765
2,067
27
420
240
580
141
9,473
1,885
6,658
7,588
7,588

547
877
2,058
27
480
243
595
166
10,058
1,888
6,884
8,170
0
299
7,871

543
809
2,064
26
265
240
587
127
9,727
1,880
6,545
7,846
7,846

+11
-66
+45
-1
-5
+12
+6
-15
+300
+5
-7
+294
+294

+2.1
-7.6
+2.2
-4.0
-2.0
+5.3
+1.1
-10.9
+3.2
+0.3
-0.1
+3.9
+3.9

Expenses related to rent business (excluding
depreciation)

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

NOI
Depreciation
Expenses related to rent business
Rental income - real estate (a)Gain or loss on sale ofGain on sale of real estate (b)real estate (million yen)
Loss on sale of real estate (c )Rental income - real estate, etc. (million yen, a + b‐c)20

3. Financial Results and Forecastsof Financial Results

Changes in Major Items

Rent revenue from existing properties in the 31st fiscal period is projected to increase by 430
million yen, or up 3.3%, from the 29th fiscal period (over 3 fiscal periods)
JPR will conduct value enhancement works systematically in accordance with the revenue trends; lower electricity charges will help improve
the income situation■ Rent Revenue (factors for period-on-period changes)■ Repairs and Maintenance• Rent revenue in the 31st period to increase by 430 million yen, up 3.3%, from the 29th period• Repairs and maintenance excluding expenses for restoration to original
condition set at approx. 350 million yen in normal operation each fiscal
period• Value enhancement works assumed to be implemented in 30th periodahead of schedule• Projected to surpass 13,500 million yen, a target since the 27th period, in the 30th period

Rent revenue(JPY mn)

Increase by move-ins

Increase/decrease through revisions

Decrease by move-outs
Increase by property acquisition(full-period operation of property acquired in 28th period)

Increase/decrease by other causes(including decrease due to property sale)+79

Approx. 350 million yen perperiod in normal operation

Plans partly implemented
ahead of schedule in 31st
period and thereafter

+233
-189

+55
+456

Repairs and maintenance (equivalent to expenses for restoration to original condition)

Repairs and maintenance (other than the left)

600

300

-26
-302

(JPY mn)-25 13,629-7

13,640023rd 24th 25th 26th 27th 28th 29th 30th 31st
(Forecast)(Forecast)

-356
+480

■ Incidental income and Utilities Expenses+1 +15 13,420• Balance (incidental income－utilities expenses) has improved since the 28th
period13,223(JPY mn)

Incidental income (right axis)+200

Balance (left axis)

Utilities expenses (right axis)

1,000

+100

500

+0

0

-100
28th Period(Dec. 2015)

29th Period (Jun. 2016)

30th Period (Forecast)(Dec. 2016)

31st Period (Forecast)(Jun. 2017)

1. Rent revenue includes such fixed income as rents, common charges, land rents, parking lot revenues and advertisement charges. The figure
for the 30th period is based on contracts confirmed at present (including new contracts concluded and cancellation notices received), and thefigure for the 31st period includes some assumed contracts in addition to the assumptions for the 30th period.

(JPY mn)-500+80 million yen-200-1,00023rd 24th 25th 26th 27th 28th 29th 30th

31st

(Forecast)(Forecast)21

3. Financial Results and Forecastsof Financial Results

Fluctuations in Distribution per Unit

Distribution per unit for the 30th fiscal period to increase by 412 yen, or up 6.3%, from the 29th
fiscal period (over 2 fiscal periods)
Contribution by rent revenue from existing properties will increase by 480 yen per unit in the same period of time
■ Distribution per Unit (factors for period-on-period changes)(yen/unit)

Distribution per unit

Positive contribution

Negative contribution

Other rental
revenue+686

Expensesrelated to rent
business andgeneraladministrative
expenses-293
Cancellation penalty, etc.
+568

Rent
revenue
Distribution
per unit+207

Other rental
revenue-62

Expensesrelated to rent
business andgeneraladministrative
expenses

-102

Rent
revenue
Rental income
from property
acquisition+7

Non-operating andDistribution
extraordinary
per unit
income+117

Gain or loss onsale of realestate, etc.
Non-operating
income-373-47

Distribution
per unit

Other rental
Rent
revenuerevenue

+23

-770

7,000

+273

Cancellation
penalty, etc.
-713

6,756

6,588

Expensesrelated to rent
business andgeneraladministrative
expensesGain or loss onsale of realestate, etc.

+339

+364

28th Period

30th Period (Forecast) (Dec. 2016)

29th Period (Jun. 2016)

31st Period (Forecast) (Jun. 2017)(Dec. 2015)

Increase in rent revenue contributed to higher cash
distributions
Significantly increased value enhancement works

Increase in rent revenue will expand
Loss on sale of real estate will be absorbed by cancellation penalty, etc.

• Increase in rent revenue (existing properties)• Increase in rent revenue (existing properties)+207 yen• Increase in repairs and maintenance-171 yenLack of cancellation penalty, etc.
Cost control including implementation of
repairs ahead of schedule+273 yen• Increase in cancellation penalty, etc. and income equivalent to expenses forrestoration to original condition+568 yen• Increase in rent revenue• Lack of cancellation penalty, etc.

-713 yen• Recording of settlement of management association accounts (nonoperating income)+59 yen• Increase in repairs and maintenance (plans for the 31st period andthereafter implemented ahead of schedule)-70 yen• Decrease in repairs and maintenance+246 yen• Lack of loss on sale of real estate, etc.

+339 yen• Decrease in interest expenses on loans and investment corporation bonds+44 yen• Recording of loss on sale of property and lack of rental income - real estatefrom the property, etc.
-373 yen+23 yen

1. Fluctuations in distribution per unit show the amounts obtained by dividing the period-on-period fluctuation amounts of respective periods by the total number of investment units outstanding at period end.

22

3. Financial Results and Forecastsof Financial Results

Traces of Growth in Distribution per Unit

Realize Growth by Steadily Achieving Targets
Since the 25th fiscal period ended June 2014, JPR has continued to achieve stable growth centering on internal growth■ Results, Forecast and Medium-Term Target of Distribution per UnitManagement Regain 6,000 yen(Dec. 2010 – Dec. 2011)
target

Maintain 6,000 yen

Grow to 6,500 yen

Grow to 7,000 yen(Jun. 2012 – Dec. 2013)(Jun. 2014 – Jun. 2015)(Dec. 2015 – Dec. 2016)

Enhance revenue centering on internal growth

Increase revenue through external growthTarget of 6,500 yen set
upon announcing
financial results in Jun.
2014

Target of 6,000 yen in normal
operation set upon announcing
financial results in Dec. 2011

Beginning-of-period forecast(yen/unit)

Grow to 7,500 yen,surpassing the record high since listing

Target of 7,000 yen set
upon public offering in
Jun. 2015

Continue internal growth
Enhance growth potential throughexternal growthTarget of 7,500 yen set
upon announcing financial
results in Jun. 2016

Results

8,000

7,500

7,000
6,430
6,000

5,680
5,750

5,000

4,000
0

6,093

5,876 6,400
5,611
5,600

6,031

6,006

5,800

6,351

6,419
6,360

6,050

6,000
5,700

6,150

5,800

Increased due to recording ofproperty tax, etc. on properties
acquired in 21st period to
costs

6,180

6,588
6,510

7,000
6,756
6,630

6,800

+700

After-adjustment level
for the 30th period
Distribution per unit after
adjustment, estimated by deducting
cancellation penalty, etc. and loss
on sale of real estate from theforecast of financial results for the
30th period and taking into accountrepairs and maintenance in normal
operation

18th
19th
20th
21st
22nd
23rd
24th
25th
26th
27th
28th
29th
30th
(Dec. ’10) (Jun. ’11) (Dec. ’11) (Jun. ’12) (Dec. ’12) (Jun. ’13) (Dec. ’13) (Jun. ’14) (Dec. ’14) (Jun. ’15) (Dec. ’15) (Jun. ’16) (Dec. ’16)

Medium-termtarget(Forecast)

1. Distribution per unit as medium-term target is a management target set by TRIM, and there is no guarantee that the figure is achieved.

23

3. Financial Results and Forecastsof Financial Results

Growth Scenarios for Distribution per Unit

Growth Scenarios for Achieving Medium-Term Target
Continue internal growth, lower interest expenses in the light of the interest environment, and achieve external growth
to enhance growth potential

Financial Strategy

based on generated rents of at least
96.0% for office properties• Target rate of increase in rents at 2.0%
• Make prudent assumptions on theoutlook of the office property leasing
market, and conservatively set plans interms of comparison with actual results

95.0-1.0 -208
0.0 -107+1.0-5+2.0 96+3.0 197

95.5
-155
-53
49
150
252

96.0
-102
0
102
205
307

96.5 97.0 97.5
-50
3
56
53 107 160
156 210 264
259 314 368
362 417 472

Reduction amount of interest expenses with assumed interest rates onrefinancing• Loans, etc. maturing in the 6 fiscal
periods (30th period and afterward)
will surpass 80 billion yen, withaverage debt cost of 1.2%
• Estimates made based on the actual
results of long-term, fixed interest rateborrowings of 8 to 10 years(30th period and afterward) (fiscal period)

30th

31st

32nd

33rd

34th

35th

0.70

26

62

36

28

16

58

0.60

33

73

46

36

22

63

0.50

40

85

56

43

27

68

0.40

47

96

67

51

33

73

Price (100million yen)Amount of increase in rental income – real estate, with assumed acquisition price of(yen/unit)
properties and after-depreciation yields
After-depreciation yield (%)• Aim to acquire candidate
2.8
2.9 3.0 3.1 3.2 3.3
properties in the pipeline at fairprice
100 160 166 172 178 183 189*The estimates to the right do not include fundprocurement costs.

(Target amount of contribution to distribution per unit by strategy)(yen/unit)

Positive scenario

+900

+700

(yen/unit)

6 fiscal periods

Interest rate(%)

External Growth
Strategy

Amount of increase/decrease in rent revenue with assumed occupancy rate based on(yen/unit)
generated rents and rate of increase in rents
Occupancy rate of office properties based• Stable occupancy at occupancy rate
on generated rents (%)

Change (%)

Internal Growth
Strategy■ Simulation Based on the Scenarios (contribution amounts to distribution per unit)

150

241

249

258

266

275

284

200

321

332

344

355

367

378

250

401

415

430

444

458

473

0〜+350+200〜350

Negative scenario+100〜300+0Internal
growthFinancialstrategy

External
growthMain scenario• Realize acquisition of candidate
properties in the pipeline• Conservatively assume theoccupancy rate based on generated
rents and rate of increase in rents• Current interest rate level to riseslightly

+600

+300

• Expand the size of properties toacquire• Maintain and raise the occupancy rate
based on generated rents and rate ofincrease in rents• Current interest rate level to continue

Total

1. Simulation based on the scenarios (contribution amounts to distribution per unit) shows figures estimated by TRIM based on its assumptions, and there is no guarantee that the figure is achieved
2. The distribution per unit shown in the simulation of internal growth strategy, external growth strategy and financial strategy indicate the figures obtained by dividing the full-period increase or decrease amounts based on respective
assumptions by the total number of units outstanding as of the end of the 29th period.

• Suspend property acquisition• Lower occupancy rate based on
generated rents and lower rate ofincrease in rents• Current interest rate level to risesignificantly

24

JAPAN PRIME REALTY INVESTMENT CORPORATION

4. Appendix

25

4. Appendix

Fund Summary

28th Period (Dec. 2015)

29th Period (Jun. 2016)

NOI

9,427 million yen

9,473 million yen

Operating revenue

6,831 million yen

6,874 million yen

Interest expenses

994 million yen

955 million yen

5,749 million yen

Net income

28th Period (Dec. 2015)

29th Period (Jun. 2016)

EPS

6,586 yen

6,754 yen

FFO per unit

8,733 yen

8,915 yen

Net assets per unit

247,696 yen

247,862 yen

5,896 million yen

NAV per unit

263,026 yen

273,915 yen

420,500 yen

422,500 yen

367,096 million yen

368,842 million yen

3.2%

3.3%

PBR

1.7 times

1.7 times

NAV multiple

1.6 times

1.5 times

31.9 times

31.3 times

FFO

7,624 million yen

7,783 million yen

Investment unit price (immediately before
the ex-rights date)

Depreciation

1,875 million yen

1,885 million yen

Market capitalization- million yen-1 million yen

6,778 million yen

7,010 million yen

846 million yen

772 million yen

5,751 million yen

5,897 million yen

PER

Total assets

418,739 million yen

418,738 million yen

ROEBalance of interest-bearing debts

176,292 million yen

176,126 million yen

FFO multiple

Net assets

216,238 million yen

216,384 million yen

Unitholders’ capital

210,395 million yen

Unrealized gains

Gain or loss on sale of real estate
properties (including loss on retirement of
noncurrent assets)
AFFO
Capital expenditure
Total cash distributions

5.3%

5.5%

24.1 times

23.7 times

AFFO payout ratio

84.8%

84.1%

210,395 million yen

Implied cap rate

3.5%

3.7%

DSCR

8.7 times

9.1 times

Interest coverage ratio

6.9 times

7.2 times

19,134 million yen

28,641 million yen

NOI yield (acquisition value)

4.6%

4.6%

NOI yield (book value)

4.8%

4.9%

NOI yield (appraisal value)

4.5%

4.5%

After-depreciation yield (acquisition price)

3.7%

3.7%

After-depreciation yield (book value)

3.8%

3.9%

After-depreciation yield (appraisal value)

3.6%

3.6%

LTV (total assets)

42.1%

42.1%

LTV (unrealized gains and losses)

40.3%

39.4%

LTV (unitholders’ capital)

45.6%

45.6%

873,000 units

873,000 units

Cash distribution per unit (result)

6,588 yen

6,756 yen

Cash distribution per unit (forecast)

6,630 yen

7,000 yen

Number of units outstanding (end of
period)Dividend yield (forecast)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

FFO = Net income＋depreciation－gain or loss on sale of real estate properties (including loss on retirement of noncurrent
assets)
AFFO = FFO－capital expenditure
EPS = Net income / number of units outstanding (end of period)
NAV per unit = (Net assets + unrealized gains or losses – total cash distributions) / number of units outstanding (end of
period)Dividend yield (forecast) = Cash distribution per unit (annualized, forecast for the next fiscal period x 2) / investment uni t pricePBR (price book-value ratio) = Investment unit price / net assets per unit
NAV multiple = Investment unit price / NAV per unit
PER (price earnings ratio) = Investment unit price / EPS (annualized, most recent result x 2)
ROE (return on equity) ＝ Net income (annualized, most recent result x 2) / net assets
FFO multiple = Investment unit price / FFO per unit (annualized, most recent result x 2))
AFFO payout ratio = Total cash distributions / AFFO
Implied cap rate = NOI (annualized, forecast for the next fiscal period x 2) / (market capitalization + interest-bearing debts –cash and deposits + tenant leasehold and security deposits)
DSCR = (Net income + depreciation + interest expenses) / interest expenses
Interest coverage ratio = Operating revenue / interest expenses
Interest expenses include interest expenses on investment corporation bonds.

26

4. Appendix

Track Record of 14 Years■ Cash Distribution per Unit and Occupancy Rate
Cash distribution per unit (yen)Occupancy rate (%)

99.0 98.7 98.0 97.0
96.9 97.0 97.2 97.5 97.4 97.8
96.2 96.4 96.1
96.1 97.7 98.3
95.2 94.0 93.8
93.6 94.0 95.0 94.8 94.4 95.6
92.6 93.1 94.3 94.9

6,912 6,873

6,671

5,738

6,081

6,370 6,411 6,509

6,873 6,996 6,671

7,122 7,092

6,933 6,770

6,430
5,680 5,611

5,876

6,093 6,031 6,006 6,150

6,351 6,419

Occupancy rate

96.0% on average

6,588 6,756

Cash distribution per unit
3,731

6,348 yen on average

2,545(excluding the 1st Period)

1st
2nd
3rd
4th
5th
7th
9th
11th
13th
14th
21st
24th
25th
26th
6th
8th
10th
12th
15th
16th
17th
18th
19th
20th
22nd
23rd
27th
28th
29th (fiscal period)(Jun. ‘02) (Dec. ’02) (Jun ’03) (Jun ’03) (Jun. ’04) (Dec. ’04) (Jun. ’05) (Dec. ’12) (Jun. ’06) (Dec. ’06) (Jun. ’07) (Dec. ’07) (Jun. ’08) (Dec. ’08) (Jun. ’09) (Dec. ’09) (Jun. ’10) (Dec. ’10) (Jun. ’11) (Dec. ’11) (Jun. ’12) (Dec. ’12) (Jun. ’13) (Dec. ’13) (Jun. ’14) (Dec. ’14) (Jun. ’15) (Dec. ’15) (Jun. ’16)

■ Asset Size
Office properties
in Tokyo

Office properties
in Other Cities

1,636
1,257
921

945

1,396

1,796

Retail properties(based on acquisition price; 100 million yen)

3,986
3,809 3,919

1,976 2,026 2,092

2,224

2,453 2,519

2,751 2,806

2,994 3,106

3,312 3,415 3,415

3,449

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

Breakdown by area andby asset class(as of June 30, 2016)
Office properties inTokyo
277.5 billion yen
Office properties in Other
Cities37.5 billion yen
Retail properties

95.2 billion yen
1st
2nd
3rd
4th
5th
7th
9th
11th
13th
14th
21st
24th
25th
26th
6th
8th
10th
12th
15th
16th
17th
18th
19th
20th
22nd
23rd
27th
28th
29th
(fiscal period)(Jun. ‘02) (Dec. ’02) (Jun ’03) (Jun ’03) (Jun. ’04) (Dec. ’04) (Jun. ’05) (Dec. ’12) (Jun. ’06) (Dec. ’06) (Jun. ’07) (Dec. ’07) (Jun. ’08) (Dec. ’08) (Jun. ’09) (Dec. ’09) (Jun. ’10) (Dec. ’10) (Jun. ’11) (Dec. ’11) (Jun. ’12) (Dec. ’12) (Jun. ’13) (Dec. ’13) (Jun. ’14) (Dec. ’14) (Jun. ’15) (Dec. ’15) (Jun. ’16)

1. As of July 30, 2016, the asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office.” After the conversion, the breakdown by area and by asset class is 43.0 billion yen for office properties in Other Cities and 89.7 billion yen for retail properties.

27

4. Appendix

Portfolio Diversification (as of June 30, 2016)

Ratio by Asset Class

Ratio by Area

Ratio by Asset Size (Office Properties)• Portfolio management standards (target investment
ratios):• Portfolio management standards (target investment
ratios):• Comprised of medium-sized to very large properties
with a focus on quality

70 - 90% for office properties / 30 - 10% for retailproperties

80 - 90% for Tokyo / 20 - 10% for Other Cities

Retailproperties

Medium-sized

Other Cities(3,000 m2 to less than
10,000 m2)

16.9%

23.2%
Officeproperties

Central Tokyo
Greater Tokyo

31.4%

53.2%

30.0%

76.8%

(Small-scale properties with a standard floor of less than 100 tsubos
are excluded from investment targets.)

Very large(30,000 m2 or
more)

42.1%
Large
(10,000 m2 to less than
30,000 m2)

26.5%

Ratio by Rent Zone (Office Properties in Tokyo)• Diversify the rent zones to diversify the timing at
which rents are affected by the market

Ratio by Tenant’s Industry (Office Properties)

Ratio of Co-Owned Properties, Etc.

• Comprised of tenants mainly in the services, informationand communication and manufacturing sectors
Medical and Welfare 1.3%
Other 1.0%

• Obtained preferred negotiation rights for most of theco-owned properties, etc.

Transportation 2.3%
Public Services 4.6%

Less than 15 25 thousand
thousand yen yen or more

17.9%

14.7%

Real Estate

8.1%

31.3%

36.1%

22.4%

Construction

8.4%
15 to less than 20 20 to less than 25
thousand yen
thousand yen

Services

Wholesale and Retail 11.0%

Information andCommunication

17.9%

Full ownership
32 buildings

Co-owned
properties, etc.
30 buildings

42.8%

57.2%

Finance andInsurance Manufacturing

11.4%
1. Ratio by Size (Office Properties) indicated the ratios based on the acquisition price for the total floor space of an enti re officeproperty.
2. Ratio by Rent Zone (Office Properties in Tokyo) indicates the ratios of the acquisition price by average unit rent zone(including common charges and assuming occupancy of vacant spaces at the standard rent set forth by JPR) to the totalacquisition price of office properties in Tokyo that JPR owns. Furthermore, The Otemachi Tower (Land with Leasehold
Interest) is excluded from the calculation as it is a land property.

11.7%
3. Ratio by Tenant’s Industry (Office Properties) = Leased space of each tenant by industry / sum total of leased officespace
4. As of July 30, 2016, the asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office.” After theconversion, the investment ratio by asset class was changed to 78.1 for office properties and 21.9% for retail properties.

28

4. Appendix

Tenant Diversification (as of June 30, 2016)■ Ratio of Tenant Occupancy■ 20 Largest Tenants (by property; based on end tenants)• The number of office tenants other than the sponsors, etc. with tenant
occupancy of 1% or more is only 2 (2.4%).

Category (No. of
tenants)• Most of the contracts with the sponsors, etc. are master lease contracts,with only a single tenant (surface rights holder) that has tenant occupancy
of 1% or more by property (based on end tenants).
• Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenants with
1% or more
(9 companies)

2.4%

Except for retail properties with long-term lease contracts,
most of the tenants have a tenant occupancy of less than
1% so that the risk of tenant move-outs is mitigated.
1.

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

Ratio of
Leased space
occupancy（㎡）（%）

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.6

Seiyu GK

Tanashi ASTA

31,121.71

6.7

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.2

The LOFT, Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.0

9,558.51

2.0

8,076.85

1.7

Olympic Group Corporation

Tower Records Japan Inc.

Musashiurawa Shopping
SquareJPR Shibuya Tower Records
Bldg.
Cupo-la Main Bldg.

5,963.00

1.3

BENETTON JAPAN CO., LTD.

Benetton Shinsaibashi Bldg.

5,303.98

1.1

Nitori Holdings Co., Ltd.

Musashiurawa Shopping
Square5,285.40

1.1

Tokyo Prime Stage Inc.

The Otemachi Tower (Land with
Leasehold Interest)

7,875.50

1.7

Rise Arena Bldg.

6,023.39

1.3

JPR Nagoya Fushimi Bldg.

5,313.36

1.1

LEVEL-5 Inc.

Yakuin Business Garden

4,579.17

1.0

Sompo Japan Nipponkoa Inc.

Sompo Japan Sendai Bldg.

4,400.03

0.9

ATM Japan, Ltd.

Olinas Tower

4,255.56

0.9

Nihon Suido Consultants Co., Ltd. Shinjuku Square Tower

4,242.48

0.9

Canon Imaging Systems Inc.

Niigata Ekinan Center Bldg.

4,078.97

0.9

Kajima Corporation

Omiya Prime East

4,005.05

0.9

Mitsubishi Electric Information
Systems Corporation

MS Shibaura Bldg.

3,922.74

0.8

SBS Holdings, Inc.

Olinas Tower

3,850.43

0.8

2. For co-owned properties, etc., the leases space in accordance with JPR’s ownership interest is indicated.
3. As of July 29, 2016, the lease agreement (master lease agreement) with Benetton Japan Co., Ltd. was cancelled. Accordingly, to conform tothe current use status, the asset class of the property was converted from “retail” to “office” as of July 30, 2016.

29

Sponsors, etc. with
1% or more
(1 company)

1.7%

Occupying property

The Maruetsu, Inc.

29.8%

66.1%

TenantOther tenants with 1% Hitachi, Ltd. Infrastructure
Systems Company
or moreHitachi Systems, Ltd.
(2 companies)

Less than 1%(614 companies)

4. Appendix

Move-Ins and Move-Outs of Tenants (29th Period)■ Breakdown and Changes in Move-Ins and Move-Outs■ Move-In/Move-Out Spaces by Property
Move-ins – move-outs(Move-in/move-out spaces by area and asset class: m2)
Net Increase/Decrease

Kanematsu Bldg.

2,427

2,427

Kanematsu Bldg. Annex

2,291

2,291

8,284

-3,1885,095

JPR Crest Takebashi Bldg.

0

3,932

-4,192-259

MS Shibaura Bldg.

-1,9601,446-3,011-1,565

Gotanda First Bldg

879

Shinjuku Square Tower

17

17

0

0

0

Shinjuku Center Bldg.

296-101 397

13,663-10,392

3,270

Shinagawa Canal Bldg.

395

JPR Harajuku Bldg.

3

Retail properties
Total(Changes in move-in/move-out spaces and rate of move-ins/move-outs)
Move-ins
2.2%

9,994㎡

Move-outs

Rate of move-ins

2.6%

2.6%

8,224㎡

11,764㎡-5,512㎡

24th
Period
1.
2.

-100

-122

21

28

-84

113

-1,032

10,870㎡

13,663㎡-10,392㎡

-1.7%

26th
Period-2.3%
27th
Period210

Science Plaza – Yonbancho Plaza

-2.8%
25th
Period

-207

3.0%

-2.6%

-2.7%

-315 710

817-12,890㎡

-1.2%

879

Ginza Sanwa Bldg.

-7,641㎡-11,603㎡-12,051㎡-396 396

JPR Sendagaya Bldg.

2.4%

28th
Period29th
PeriodRate of move-ins and move-outs = Move-in and move-out spaces of each fiscal period / total leasable space atthe end of the previous fiscal periodMove-in/Move-Out Spaces by Property indicates only the properties that had tenant moves (including contractchanges, etc.) during the 29th Period(m2)-1,960Rate of move-outs

1.8%
11,598㎡

Move-ins

Move-Outs

Move-Ins

Office properties inCentral Tokyo
Office properties inGreater Tokyo
Office properties in
Other Cities

Move-outs

817

Arca East-1,032

JPR Chiba Bldg.

-122

Shinyokohama 2nd Center Bldg.

259

-98

357

Kawaguchi Center Bldg.

100

-103

204

-300 178

JPR Ueno East Bldg.

390

Tachikawa Business Center Bldg.

240

-90

Yume-ooka Office Tower

248

-818

Olinas Tower-344

Tokyo Tatemono Honmachi Bldg.

-163

-163

JPR Hakata Bldg.

-72

-72

Sompo Japan Wakayama Bldg.

80

JPR Dojima Bldg.

-1,962

JPR Nagoya Fushimi Bldg.

32

-32

Yakuin Business Garden

520

-780

390
331

1,067

-1,7481,403

80-1,962
64
1,300

30

4. Appendix

Diversification of Lenders and Lender Formation (as of June 30, 2016)

Diversifying fund procurement sources with a lender formation comprising
24 financial institutions and through issuance of investment corporation bonds
Interest-bearing debt balance: 176,126 million yen

Sumitomo Mitsui Trust Bank, Limited

1,000

The Norinchukin Bank

1,000

Tokio Marine & Nichido Fire Insurance Co., Ltd.

1,000

Daido Life Insurance Company

1,000

The Iyo Bank, Ltd.

1,000

Resona Bank, Ltd.

2,000

The Hachijuni Bank, Ltd.

2,000

The Nishi-Nippon City Bank, Ltd.

3,000

The Chugoku Bank, Ltd.

3,000

Taiyo Life Insurance Company

3,000

The Shinkumi Federation Bank

3,000

Shinkin Central Bank

3,000

ORIX Bank Corporation

3,000(JPY million)(Breakdown of investment corporation bonds)

Mizuho Bank Ltd.
26,000Investment corporation bonds
41,500
The Bank of Tokyo-Mitsubishi
UFJ, Ltd.
18,000Sumitomo Mitsui Banking
Corporation
12,9004,500

Thirteenth series of bonds

7,000

Fourteenth series of bonds

2,000

Fifteenth series of bonds

5,000

Sixteenth series of bonds

2,000

Seventeenth series of bonds

5,000

Eighteenth series of bonds

2,000

Nineteenth series of bonds

5,000

Twentieth series of bonds

2,000

Twenty-first series of bonds

4,000

Twenty-second series of bonds

3,000

Shinsei Bank, Ltd.
9,000
Aozora Bank Ltd. 7,900

Sompo Japan Nipponkoa Insurance Inc. 4,000

Development Bank of Japan Inc.
7,420

Meiji Yasuda Life Insurance Company 4,406
The Bank of Fukuoka, Ltd. 5,000

Seventh series of bonds

Mizuho Trust & Banking Co., Ltd.
7,000

Mitsubishi UFJ Trust andBanking Corporation 6,000

1. All borrowings are long-term, fixed interest rate debt.

31

4. Appendix

Interest-Bearing Debts and Credit Ratings (as of June 30, 2016)■ Diversification of Repayment/Redemption Dates of Interest-Bearing Debts(Commitment line)• Controlled the repayment amount for each fiscal period at up to 10 to 15 billion yen by working to lengthen thematurities and diversify the maturity dates

Counterparty(10 million yen)

Investment corporation bonds

300

Long-term loans payable

Commitment line

50

195

83

0

Mizuho Trust &Banking Co., Ltd.

Repayment amount for each fiscal
period up to 10 to 15 billion yen
40

20

130

51

81

91

80

20

110
60

48

20

25

50

80

70

30
30

50

90

85

31st

32nd 33rd

34th

35th

36th

37th

38th

39th

40th

41st

42nd 43rd

44th

45th

46th

47th

48th

49th

50th

(No. of years) 0.5

1.0

1.5

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.5

8.0

8.5

9.0

9.5

10.0

10.5

2.0

7.0

■ Lengthening of Average Maturity and Average Remaining Period of Interest-Bearing Debts for Each Fiscal Period• Average remaining period of interest-bearing debts is kept at 4 years or longer by borrowing long-term,
fixed interest rate debts of 8 to 10 years on average
Average maturity (for each fiscal period)(year)

12510

8.7 8.7

8

9.7

9.3
7.8

5.9 6.3 6.3

3

3.3

3.4

3.5

To
November 30,
2016■ Status of Credit Ratings
Credit Rating Agency

3.9

4.0

4.0

4.2

2.9

R&I

Corporate Credit
Rating (Outlook)AA-

Rating and Investment
Information, Inc.

(Stable)S&P

Long-term: A(Stable)4.7
2

4Standard & Poor's
Ratings Japan K.K.

1

2
0

4

3.8

28.0
billion yen

Resona Bank, Ltd.

Average remaining period of borrowings(entire interest-bearing debts)(year)

From
December 1,
2015

Mitsubishi UFJ Trustand Banking
Corporation

50(fiscal period) 30th

6

Mizuho Bank Ltd.

Aozora Bank Ltd.

70

periodSumitomo Mitsui
Banking Corporation

200

100

Contract

limit

The Bank of TokyoMitsubishi UFJ, Ltd.

Commitment line
28.0 billion yen

50

Credit21st
Period22nd
Period23rd
Period24th
Period25th
Period26th
Period27th
Period28th
Period29th
Period0

21stPeriod22nd
Period23rd
Period24th
Period25th
Period26th
Period27th
Period28th
PeriodShort-term: A-1

29th
Period32

4. Appendix

Appraisal Value (as of June 30, 2016)■ An Increase in Unrealized Gains■ Factors of Change in Appraisal Value• Unrealized gains totaled 28.6 billion yen (up 9.5 billion yen, or up 2.4%,
period-on-period) due to an increase in appraisal value(Changes in direct cap rate)• Appraisal value increased for 49 properties with direct cap rate falling for
44 properties (out of 62 properties in total)• Decreased by 0.7 percentage points from the 17th period ended June 2010
(4.8%), the peak period for office properties in Central Tokyo

Appraisal value

Unrealized gains

Ratio of unrealized gains(%)

Entire portfolio

Office properties in Central Tokyo

5.2

419.8 billion yen

28.6 billion yen

7.3%(up 8. 4 billion yen from 28th period)(up 9.5 billion from 28th period)(up 2.4 percentage points from 28th period)

5.0
4.8
4.6

(Changes in unrealized gains and losses)

4.4
Unrealized gains and losses (left axis)(100 million yen)（%）
30

Ratio of unrealized gains and losses (right axis)

600

4.2
4.0

0.0
3.8

500

25

400

20

300

15
28.6 billion yen
7.3% 10

200
100

15th
Period17th
Period19th
Period21stPeriod23rd
Period25th
Period27th
Period29th
Period(Breakdown of unrealized gains and losses)• Number of properties with unrealized losses decreased by 5 from 24
properties as of the end of the 28th period(100 million yen)

Unrealized gains

Unrealized losses

+600

5

0

0

+300

62 properties
in total

43 properties
51.8 billion yen

-100

-5

-200

- 10

28.6 billion yen+0

19 properties‐23.2 billion yen

-300

1

3

5

7

9

11

13

15

17

19

21

23

25

27

29

- 15

(at end of period)-300

Entire portfolio

Breakdown of unrealized gains andlosses

1. The changes in direct cap rate indicate the figures for the 51 properties JPR has owned since the end of June 2009 for the Entire
portfolio, and for the 16 properties JPR has owned since the date for Office properties in Central Tokyo, respectively.

33

4. Appendix

Property nameAppraisal Value by Property (as of June 30, 2016)

Appraisalvalue(mn yen)Direct cap
ChangeChange(NCF Cap)(mn yen)
(%pt)
(%)

DCF
discountrate(%)

Change(%pt)

DCF
terminal
cap(%)

Change(%pt)

UnrealizedBook value
gain or loss
(mn yen)(mn yen)

Property nameAppraisalvalue(mn yen)Direct cap
ChangeChange(NCF Cap)(mn yen)
(%pt)
(%)

DCF
discountrate(%)

Change(%pt)

DCF
terminal
cap(%)

Change(%pt)

UnrealizedBook value
gain or loss
(mn yen)(mn yen)Kanematsu Bldg.

12,800

+200

3.8

-0.1

3.6

-0.1

4.0

-0.1

14,746-1,946

Arca East

6,320

-

4.3

0.0

4.0

0.0

4.5

0.0

4,366

1,953

Kanematsu Bldg. Annex

2,540

+110

4.2

-0.1

4.0

-0.1

4.4

-0.1

2,476

+63

JPR Chiba Bldg.

1,800

+50

5.6

-0.1

5.4

-0.1

5.8

-0.1

2,294

-494

JPR Ningyo-cho Bldg.

2,550

+40

4.4

0.0

4.2

0.0

4.6

0.0

1,996

+553

JPR Yokohama Nihon Odori Bldg.

2,470

+40

5.2

-0.1

5.0

-0.1

5.4

-0.1

2,525

-55

Shin-Kojimachi Bldg.

3,100

+40

4.2

0.0

3.9

0.0

4.4

0.0

2,481

+618

Shinyokohama 2nd Center Bldg.

1,750

+40

5.4

-0.1

5.2

-0.1

5.6

-0.1

1,432

+317

JPR Crest Takebashi Bldg.

3,150

+110

4.1

-0.1

3.9

-0.1

4.3

-0.1

3,299

-149

Kawaguchi Center Bldg.

7,800

+120

5.4

-0.1

5.1

-0.1

5.6

-0.1

6,968

+831

MS Shibaura Bldg.

11,400

-

4.5

0.0

4.2

0.0

4.7

0.0

11,106+293

JPR Ueno East Bldg.

4,510

-

4.4

0.0

4.2

0.0

4.6

0.0

2,989

+1,520Gotanda First Bldg.

2,470

-

4.2

-0.1

3.9

0.0

4.4

0.0

3,012

-542

Tachikawa Business Center Bldg.

3,280

+90

4.9

-0.1

4.6

-0.1

5.1

-0.1

2,905

+374

Fukuoka Bldg.

3,020

+70

4.0

-0.1

3.7

-0.1

4.1

-0.1

2,994

+25

Rise Arena Bldg.

7,570

+80

4.3

-0.1

4.1

-0.1

4.5

-0.1

5,367

+2,202JPR Ichigaya Bldg.

5,000

+110

4.0

-0.1

3.8

-0.1

4.2

-0.1

5,239

-239

Yume-ooka Office Tower

5,930

+100

4.8

-0.1

4.5

-0.1

5.0

-0.1

5,563

+366

Oval Court Ohsaki Mark West

4,510

-90

4.2

-0.2

4.0

-0.2

4.4

-0.2

2,906

+1,603

Olinas Tower

35,300

+400

4.2

0.0

3.9

0.0

4.4

0.0

28,107+7,192

Shinjuku Square Tower

13,700

+400

4.1

-0.1

3.9

-0.1

4.3

-0.1

13,568+131

Tokyo Tatemono Yokohama Building

7,950

+130

4.7

-0.1

4.5

-0.1

4.9

-0.1

6,877

+1,072BYGS Shinjuku Bldg.

15,500

+400

4.0

-0.1

3.8

-0.1

4.2

-0.1

15,474+25

Omiya Prime East

7,440

+310

4.9

-0.1

4.7

-0.1

5.1

-0.1

5,989

+1,450

861

+20

4.9

-0.1

4.7

-0.1

5.1

-0.1

599

+261

Tanashi ASTA

13,300

+200

5.3

-0.1

5.1

-0.1

5.5

-0.1

7,430

+5,869Shinjuku Center Building

13,900

+100

3.8

0.0

3.5

0.0

4.0

0.0

22,214-8,314Cupo-la Main Bldg.

2,680

-

5.5

0.0

5.3

0.0

5.7

0.0

1,766

+913

Minami Azabu Building

2,640

+80

4.5

-0.1

4.2

0.0

4.6

0.0

3,873

-1,233

JPR Musashikosugi Bldg.

5,500

+60

5

-0.1

4.8

-0.1

5.2

-0.1

7,091

-1,591

Shinagawa Canal Building

1,820

-

4.4

0.0

4.1

0.0

4.6

0.0

1,753

+66

Musashiurawa Shopping Square

4,250

+80

5.1

-0.1

5.0

-0.1

5.3

-0.1

3,807

+442

Rokubancho Building

3,320

+70

6.6

-0.2

4.3

0.0

4.7

0.0

2,847

+472

Kawasaki Dice Bldg.

15,400

+300

4.3

-0.1

4.2

-0.1

4.5

-0.1

13,759+1,640JPR Harajuku Building

8,260

+430

4.1

-0.1

3.9

-0.1

4.3

-0.1

8,721

-461

Niigata Ekinan Center Bldg.

2,390

+30

6.1

-0.1

6.1

-0.1

6.3

-0.1

1,675

+714

Tokyo Tatemono Kyobashi Building

5,900

-

4.2

0.0

3.7

0.0

4.3

0.0

5,336

+563

Tokyo Tatemono Honmachi Bldg.

3,340

+60

5.1

-0.1

4.8

-0.1

5.3

-0.1

4,087

-747

JPR Nihonbashi-horidome Building

6,390

+130

4.5

-0.1

4.3

-0.1

4.7

-0.1

4,860

+1,529JPR Hakata Bldg.

3,040

+170

5

-0.3

4.9

-0.3

5.2

-0.3

3,003

+36

JPR Sendagaya Building

11,300

+300

4.1

-0.1

3.9

-0.1

4.3

-0.1

14,996-3,696JPR Naha Bldg.

1,500

+80

5.9

-0.2

5.9

-0.2

6.1

-0.2

1,343

+156

Ginza Sanwa Building
The Otemachi Tower

3,610

+60

3.6

-0.1

3.4

-0.1

3.8

-0.1

3,677

-67

Sompo Japan Sendai Bldg.

3,660

+60

5.5

-0.1

5.2

-0.1

5.8

-0.1

2,294

+1,365

45,100+1,400

3.0

-0.1

2.9

-0.1

3.1

-0.1

38,388+6,711

Sompo Japan Wakayama Bldg.

1,680

-

6.9

0.0

6.7

0.0

7.2

0.0

1,374

+305

Science Plaza - Yonbancho Plaza

3,040

-

4.3

0.0

4.0

0.0

4.6

0.0

2,698

+341

Tenjin 121 Bldg.

2,540

+90

4.9

-0.1

4.5

-0.1

5.1

-0.1

2,123

+416

Shibadaimon Center Building

5,320

+40

4.1

0.0

3.8

0.0

4.3

0.0

4,230

+1,089JPR Dojima Bldg.

2,450

+80

4.9

0.0

4.6

-0.1

5.0

-0.1

2,172

+277

JPR Shibuya Tower Records Bldg.

13,900

-

3.8

0.0

3.6

0.0

4.0

0.0

11,531+2,368JPR Hakata-chuo Bldg.

1,780

+50

5

-0.2

4.8

-0.2

5.2

-0.2

1,812

-32

JPR Daikanyama

1,600

-

3.8

0.0

3.9

0.0

4.0

0.0

2,180

-580

JPR Nagoya Fushimi Bldg.

2,710

+80

5.6

-0.1

5.1

-0.1

5.5

-0.1

3,961

-1,251JPR Jingumae 432

3,820

+100

3.4

-0.1

3.5

-0.1

3.6

-0.1

4,306

-486

Yakuin Business Garden

13,900

+700

4.6

-0.1

4.4

-0.1

4.8

-0.1

10,767+3,132

Shinjuku Sanchome East Bldg.

2,780

+20

3.8

0.0

3.3

0.0

4.0

0.0

2,651

+128

JPR Umeda Loft Bldg.

14,300

+300

4.4

-0.1

4.1

-0.1

4.6

-0.1

12,525+1,774

Yurakucho Ekimae Building

2,980

-10

3.6

0.0

3.0

0.0

3.6

0.0

3,333

-353

Benetton Shinsaibashi Bldg.

4,070

+110

4.2

-0.1

3.9

-0.1

4.3

-0.1

5,065

-995

Housing Design Center Kobe

6,910

+130

5.9

-0.1

5.7

-0.1

6.0

-0.1

6,333

+576

JPR Chayamachi Building

6,080

+330

3.9

-0.2

3.6

-0.2

4.0

-0.2

5,950

+129

Total

419,881+8,400391,239+28,641

Central Tokyo

216,281+4,130217,505-1,224

Greater Tokyo

133,250+2,000109,241+24,008

Other Cities

70,350+2,27064,492+5,857

Across Shinkawa Bldg. Annex(Land with Leasehold Interest)

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate that serve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF) method.

34

4. Appendix

Yields (as of June 30, 2016)■ Yields by Area and by Asset Class(based on book value)■ NOI Yield by Property (based on book value)• Yields of office properties in Greater Tokyo and Other Cities
remained at a high level
Raising of rents for office properties in Central Tokyo helped
increase the portfolio yield(NOI yield)(%)

10Central Tokyo
(%)

0

5

Officeproperties inCentral Tokyo

Officeproperties inGreater Tokyo

Retailproperties

6.5%
5.6%

5

3.8%

Arca East

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.

Fukuoka Bldg.
JPR Ichigaya Bldg.

Shinjuku Square Tower
BYGS Shinjuku Tower

0

Minami Azabu Bldg.
Shinagawa Canal Bldg.

(After-depreciation yield)

JPR Harajuku Bldg.

OfficeOfficeproperties inproperties in Greater Tokyo
Central Tokyo

5

4.5%
3.2%

Officeproperties in
Other Cities

4.7%

Retailproperties

Ginza Sanwa Bldg.
The Otemachi Tower (Land with
Leasehold Interest)
Science Plaza – Yonbancho Plaza

4.7%

Portfolio average
3.9%

Shibadaimon Center Building
JPR Shinjuku Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.

0
1. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

Average of Central Tokyo

Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East

5

10

15

5.0
6.0
6.0
8.2
7.3
7.7
6.6
6.5
5.5
5.3
6.6
7.0
13.7

Tanashi ASTA

8.1

Cupo-la Main Bldg.

7.7

JPR Musashikosugi Bldg.

Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Average of Greater Tokyo

4.3
5.9
5.3
6.4

8.7
5.3
6.0
2.4
3.7
3.5
5.9
5.8
5.0
3.1
3.1
3.6
3.2
3.8

10.1

Niigata Ekinan Center Bldg.

3.7

JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

Rise Arena Bldg.
Yume-ooka Office Tower

2.9
1.7
1.9

Tokyo Tatemono Kyobashi Bldg.

10

JPR Ueno East Bldg.

Tachikawa Business Center Bldg.

8.0

Rokubancho Bldg.

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

Kawaguchi Center Bldg.

3.6
4.6

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

Shinyokohama 2nd Center Bldg.

3.6
4.3
3.9
4.1
4.2

Oval Court Ohsaki Mark West

Portfolio average
4.9%

JPR Yokohama Nihon Odori Bldg.

6.1
5.9

Shin-Kojimachi Bldg.

Officeproperties in
Other Cities

(%)

0

15
JPR Chiba Bldg.

0.0

JPR Ningyo-cho Bldg.

Gotanda First Bldg.

6.1%

10

2.4

Kanematsu Bldg.
Kanematsu Bldg. Annex

Circle size = portfolio asset size (book value)
Center of circle = NOI yield

Greater Tokyo and Other Cities

Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.

4.6
6.5
8.3
9.7
10.4

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

6.1
10.3

JPR Dojima Bldg.
JPR Hakata-chuo Bldg.

6.5

JPR Nagoya Fushimi Bldg.

4.1
5.4
5.2
4.4
6.4
4.2
5.9

Yakuin Business Garden
JPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

354. Appendix

Unitholders (as of June 30, 2016)■ Number of Units by Unitholder Type(873,000 units in total)
Individuals
36,075
4%
Securities
companies
23,2303%Foreigninvestors
207,437
24%

Other domestic
corporations
82,5339%Unitholder

Financial
institutions
523,72560%
Of which, investment
trusts incorporating
JPR units262,358
30%■ Number of Unitholders by Unitholder Type(11,786 unitholders in total)
Other domestic
corporations
232
2%

Foreigninvestors
378
3%

Securities
companies
230%

No. of units Share (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

192,707

22.1

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

66,029

7.6

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

59,048

6.8

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

32,170

3.7

Tokyo Tatemono Co., Ltd.

29,300

3.4

Kawasaki Gakuen

25,0002.9

Meiji Yasuda Life Insurance Company

24,0002.7

State Street Bank West Client Treaty 505234

22,3082.6State Street Bank West Pension Fund Clients Exempt 505233

15,333

1.8

State Street Bank and Trust Company 505223

14,1071.6

480,002

55.0

No. of units

Share (%)

43,661

5.0%

Total

Financial
institutions
163
1%
Of which,
investment trusts
incorporating JPR
units
32
0%

■ Top Unitholders(Filing status of large shareholdings reports)
Filing date
Individuals
10,99093%

May 19, 2016

Unitholder
Bank of Japan

36

4. Appendix

Sustainability

Maximize corporate value through endeavors on ESG (Environment, Social,
Governance) awareness■ Governance■ Social

Corporate Philosophy of Asset Manager (TRIM)

Tenant Satisfaction Survey

Securing BCP

Provide value to any of the unitholders, customers, social communities and employees by offering“professional real estate investment and management services” with good faith and responsibility

Comprehensive satisfaction score: 87.5 points (out of
100 points)
Replay ratio of “satisfactory/somewhat satisfactory”
and higher: 97.6%(2016 survey, N=457)

Conducted an earthquake disaster drill to speed up
collection of information on property damages, assuming
an earthquake that directly hits the Greater Tokyo area

• Good faith and responsibility to unitholders
Unitholders shall be able to receive rewards that are based on ahealthy profit and are generated from the value provided to thecustomers, employees and social communities

Unitholders

Customers• Good faith and responsibility to customers
Each of TRIM’s officers and employees shall act as a professional withboth good faith and responsibility in the face of JPR’s unitholders,tenants, people visiting its buildings, property management companies
and financial institutions, etc.

Employees

Value• Good faith and responsibility to social communities
TRIM shall contribute to the evolution of the society, development of real estate
finance and enhancement of urban infrastructures through its business operations, forthe benefit of the local communities, municipalities and the country in which TRIM
exists as well as the societies around the world.
Socialcommunities(point)Comprehensive satisfaction
score (average)

100

87.5

75
50
25

• Good faith and responsibility to employees
Employees shall be respected as individuals one by one, and theirdignity and value shall be recognized

0'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16(year)■ Environment
Reduction of Energy Consumption (Revised Energy Conservation Act)(%)

Target under Revised
Energy Conservation Act

Comparison
with base year

100

95.1
Achieved a reduction rate
far exceeding than thetarget

90

80

78.8

'10

'11

'12

'13

'14

'15

DBJ Green Building

JPR has obtained “Green Star,” the highest
ranking, for two consecutive years

JPR has obtained certification for 14 properties in total
2 buildings(including Olinas Tower)

5 buildings(including JPR Sendagaya Bldg.)

4 buildings

Actual result of comparison
with base year

70
60
0

-16.3%pt

GRESB(fiscal year)(including JPR Crest Takebashi Bldg.)

3 buildings(including JPR Nihonbashi-horidome Bldg.)

1. The target figure (95.1%) under the Revised Energy Conservation Act represents the reduction rate against the base year in 5 years with an annual reduction of 1% year-on-year. The per-unit rate of change for the 5 fiscal years is 99.0% on average.
2. The tenant satisfaction survey is conducted each year mainly for the tenants of office properties, and shows results of surveys on comprehensive satisfaction levels in 7 areas regarding the buildings and their administration.

37

4. Appendix

Governance■ Special Features of Governance■ Remuneration System of the Asset Manager• Asset management fee consisting of a fixed fee and incentive fees

Highly independent list of Directors• The executive officer and supervising officers do not concurrently serve as directors of the Asset Manager, sothat the strong independence of JPR is maintained.
• The JPR officers are comprised of attorneys and a certified public accountant with a thorough knowledge of the
REIT industry as well as experience and professional skills

Various shareholding structure and strengthened independence• The diversified shareholding structure of the sponsors comprising five companies contributes to securing theindependence of TRIM
• TRIM President and CEO has assumed office after having his employment transferred to TRIM, instead of being
seconded from the sponsor company he belonged to.
• The Compliance Office general manager in charge of internal control is not a person seconded from any of thesponsors.

Item(Organization chart of the Asset Manager)

75 mn yen

14.6%

Incentive Fee 1

2% of JPR’s total revenue(1.5% for 8 billion yen or higher)

254 mn yen

49.7%

Incentive Fee 2

3% of JPR’s income before income
taxes

182 mn yen

35.6%

Incentive Fee 3

0.25% of the acquisition price upon
new acquisition- mn yen

0.0%(Decision-making process for property acquisitions)Auditors

Board of Directors

President & CEO
Investment Committee

Compliance Committee(Compliance Subcommittee)

Compliance Office

Investment Management
Division

Financial Division

1. Review, screening

Compliance Subcommittee

2. Decision on
acquisition policy

Investment Subcommittee

3. Due diligence

Due Diligence Subcommittee

4. Prior review /approval oftransaction withrelated parties

Compliance Committee /JPR’s Board of Directors

Corporate Planning /Administration Division

5. Final decision on
acquisition

ResearchGroup

Investment
Group

Asset
Management 1
Group

Asset
Management 2
Group

Asset
Management 3
Group

Asset
Engineering
Group

Financial
Group

Share

12.5 million yen per month

Shareholders’ Meeting(Investment Subcommittee / FundManagement Subcommittee)

Results ofRemuneration(29th Period)

Fixed fee

Decision Making Based on Stringent Processes• Material transactions to be conducted with the sponsors, etc. are screened and verified by the Compliance
Committee, in which an outside attorney participates as a special member. The Committee employs unanimous
vote, not majority vote, for approvals in principle.

Calculation of Compensation

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

6. Decision making
on acquisition
over certain
amountInvestment Subcommittee

Review to ensure that decision procedures at
Investment Subcommittee are in compliance withlaws, regulations, JPR’s Articles of Incorporation andinternal policies of Asset Manager, etc.

Decide on acquisition policy after reviewing
disclosed material from seller, etc.
Review legal compliance, property review,
environmental risk, rights and engineering
report; if there are problems, then review
solutions and improvement plans

Review of due diligence report and results ofnegotiations with seller, and determine whether
compliant with investment standards andappropriateness of acquisition price

TRIM’s Board of
Directors

38

4. Appendix

Office Property Leasing Market

Estimate of Net Increase in Leasable Floor Area and Prospect of Vacancy Rate
■ New Supply and Loss of Office Spaces and Net Increase in Leasable Floor Area (Tokyo CBDs)• Net increase in leasable floor area in 2016 and thereafter, taking into account the loss area, isestimated to be a little over 130,000 tsubos on average(thousand tsubo)

New supply

Loss area(Actual monthly results from January through June 2016)

Net increase

300

Part of planned supply for 2019likely to be carried over to 2020

(thousand tsubo)

New supply (left axis)

Lost area (left axis)

New demand (left axis)

Vacancy rate (right axis)

100

200

0

-100

2012

2013

2014

2015

4.23

80

100

2011

4.04

4.01

Average net increase(estimate)

4.34

2016

2017

2018

2019

2020 (year)(forecast)(forecast)(forecast)(forecast)(forecast)

4.05

(%)

5

4.07

60

New demand in
January through June40

124,000 tsubos

4
3
2

20

1

0

0

-20

Jan.

Feb.

Mar.

Apr.

May

-1

Jun.

■ Vacancy Rate Simulation (Tokyo CBDs)• On top of the above assumptions, new demand for office spaces is assumed to be around 70%
on average of past results(%)
Vacancy rate
9.01
8.67
10
Vacancy rate is unlikely to exceed 5%
7.34
over a medium term and assumed to
5.47
remain at around 3 - 4%
4.03
5

(Changes in leasable floor area and occupied area)

Pace of increase in occupied area: approx. 150,000
tsubos annually on average (since June 2010)

7.0

6.5

Leasable floor area (up 550,000 tsubos) < Occupied area (up870,000 tsubos) (exceeding by 320,000 tsubos)(at year end)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

(forecast)(forecast)(forecast)(forecast)(forecast)

1. Actual results of the vacancy rate, leasable floor area and occupied area through June 2016 are based on the Office Report (Tokyo CBDs) by Miki Shoji Co., Ltd. New
supply, new demand and loss areas as well as the vacancy rate in July 2017 and thereafter have been estimated based on surveys and simulations conducted by TRIM.

Leasable floor area

7.5

6.0

0

Occupied area

(million tsubo)(June 2010 – June 2016)
5.5
0

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16 (year)39

4. Appendix

For-Sale Office Property Market

There is room for further compression of cap rates due to introduction of negativeinterest rates and for a price hike due to higher rents■ Cap Rates of Office Properties in Tokyo• Decreased 25 percentage points (pts) for grade A office properties and 40
pts for grade B office properties in the last 4 quarters■ Correlation between Price and Rent of Grade A Office
Properties in Tokyo• Fell below the level in 2007, the last peak, and continue to drop further• Rent increased 16 points from the bottom in 2012 while price rose 73
points from 2010 by index(%)(pt・’02Q1=100)

Grade A office properties

Grade B office properties

6.0

Rent index

Price index

300

5.5

250

5.0
200
4.5
Last peak for grade B officeproperties

150

Price index: up 73 points

100

Rend index: up 16 points

4.0

3.5

Last peak for grade A officeproperties

'16Q1

'15Q3

'15Q1

'14Q3

'14Q1

'13Q3

'13Q1

'12Q3

'12Q1

'11Q3

'11Q1

'10Q3

'10Q1

'09Q3

'09Q1

'08Q3

'08Q1

'07Q3

'07Q1

2.5
0

0

'02Q1
'02Q3
'03Q1
'03Q3
'04Q1
'04Q3
'05Q1
'05Q3
'06Q1
'06Q3
'07Q1
'07Q3
'08Q1
'08Q3
'09Q1
'09Q3
'10Q1
'10Q3
'11Q1
'11Q3
'12Q1
'12Q3
'13Q1
'13Q3
'14Q1
'14Q3
'15Q1
'15Q3
'16Q1

50

3.0

1. Prepared by TRIM based on reports publicized by Jones Lang LaSalle K.K.

40

4. Appendix

Investment Unit Price■ Investment Unit Price Trends since Listing

JPR

TSE REIT Office Index

TSE REIT Index■ Distribution Yields of JPR Investment Units andSpread from 10-Year Government Bonds Yields(pt)

600,000

3,000

（%）
12

500,0002,500

10400,000

2,000

8300,000

1,500

6200,000

1,000

4100,000

500

2

0

0
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 (year)

0

(yen)

'03

Spread from 10-year government bonds yields

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

JPR

'14

'15 (year)

1. Prepared by TRIM based on Bloomberg data.

41

4. Appendix

Portfolio Map

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

areas of Tokyo, Chiba, Kanagawa■Greater Tokyo Allandother
Saitama Prefectures

Shinjuku

A-11

Ichigaya

A-5

A- 4
A-14

SaitamaPrefecture

A-9

A-12
A-24

B-5

Musashiurawa

A-20

A-4

B-6

Chiba
Prefecture

B-3

Kawaguchi

A-23
A-3

A-17

B-1

Chiyoda Ward Tokyo

A-1

A-21

A-2
A-8

Shibuya Ward

A-5

Harajuku

A-13
A-19

B-9

TanashiB-8

TachikawaShinjuku

B-7

Tokyo

B-1

Kinshicho

ShibuyaA-22

B-2

Shinbashi
A-18

Kanagawa
Prefecture

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

Tokyo Tatemono Yokohama Building

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

Yokohama

B-5

Musashiurawa Shopping Square

B-3

B-6

Kawasaki Dice Bldg.

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

J PR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

B-6

Shin-Yokohama
B-12

JPR Ueno East Bldg.

B-8

Omiya Prime East

B-5

Hamamatsucho

Kawaguchi Center Bldg.

B-7

Tanashi ASTA

Kawasaki

A-25

Shinyokohama 2nd Center Bldg.

B-6

B-1

B-4

Chuo Ward

Shibuya

JPR Yokohama Nihon Odori Bldg.

B-5

B-13

Musashikosugi

Minato Ward

JPR Chiba Bldg.

B-3

Chiba

Shinagawa

A-3

A-1

Arca East

B-2

B-11

Ikebukuro

Tokyo

B-1
B-13

Omiya

Shinjuku Ward

A-2
A-15

TamachiB-10

KamiokaA-6■Other Cities
GotandaShinagawa

A-7

C-4

A-16

Tokyo Tatemono Honmachi Bldg.

A-10

OhsakiShinagawa Ward

C-17

JPR Dojima Bldg.

C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.

SendaiA-1

Kanematsu Bldg.

A-11

Shinjuku Square Tower

A-21

JPR Sendagaya Bldg.

C-7

JPR Hakata Bldg.

A-2

Kanematsu Bldg. Annex

A-12

BYGS Shinjuku Bldg.

A-22

Ginza Sanwa Bldg.

C-14

Tenjin 121 Bldg.

A-3

JPR Ningyo-cho Bldg.

A-13

Across Shinkawa Bldg. Annex

A-23

The Otemachi Tower (Land with Leasehold Interest)

C-18

JPR Hakata-chuo Bldg.

A-4

Shin-Kojimachi Bldg.

A-14

Shinjuku Center Building

A-24

Science Plaza - Yonbancho Plaza

C-20

Yakuin Business Garden

A-5

JPR Crest Takebashi Bldg.

A-15

Minami Azabu Bldg.

A-25

Shibadaimon Center Bldg.

A-6

MS Shibaura Bldg.

A-16

Shinagawa Canal Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-7

Gotanda First Bldg.

A-17

Rokubancho Building

A-2

JPR Daikanyama

A-8

Fukuoka Bldg.

A-18

JPR Harajuku Bldg.

A-3

JPR Jingumae 432

A-9

JPR Ichigaya Bldg.

A-19

Tokyo Tatemono Kyobashi Building

A-4

Shinjuku Sanchome East Bldg.

A-10

Oval Court Ohsaki Mark West

A-20

JPR Nihonbashi-horidome Building

A-5

Yurakucho Ekimae Building (Yurakucho Itocia)

1. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

Niigata

Kobe
Fukuoka

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

42

4. Appendix

Portfolio List（Central Tokyo）

A－1 Kanematsu Bldg.

A－2 Kanematsu Bldg. Annex① Chuo-ku
S・RC・SRC②
B2/13F③ Feb. 1993
④ 14,995m2⑤ 11,906m2⑥ 79.4%⑦ Dec. 2001
⑧ 16,276 mn yen

A－5 JPR Crest Takebashi Bldg.
① Chiyoda-ku
② SRC

B1/9F

③ Sep. 1999
④ 4,790m2⑤ 4,790m2⑥ 100.0%⑦ Jun. 2002
⑧ 4,000 mn yen

A－14 Shinjuku Center Building

A－3 JPR Ningyo-cho Bldg.

A－4 Shin-Kojimachi Bldg.

① Chuo-ku① Chuo-ku② SRC② SRC・RC

B1/8F

A－23 The Otemachi Tower (Land with Leasehold Interest)① Chiyoda-ku
② SRC

B1/8F

B1/9F

③ Feb. 1993

③ Dec. 1989

③ Oct. 1984

④ 4,351m2④ 4,117m2④ 5,152m2

2

2⑤ 3,455m⑤ 4,117m⑤ 3,258m2⑥ 79.4%⑥ 100.0%⑥ 77.2%(87.4%)⑦ Dec. 2001

⑦ Nov. 2001

⑦ Nov. 2001 etc.

⑧ 2,874 mn yen⑧ 2,100 mn yen⑧ 2,420 mn yen

A－6 MS Shibaura Bldg.

A－7 Gotanda First Bldg.

① Minato-ku
SRC・RC・S②
B2/13F③ Feb. 1988
④ 31,020m2
2⑤ 15,439m⑥ 58.0%⑦ Mar. 2003
⑧ 11,200 mn yen

A－9 JPR Ichigaya Bldg.

A－8 Fukuoka Bldg.

① Shinagawa-ku① Chuo-ku② SRC・RC② SRC

B2/11F③ May. 1990

④ 10,553m2④ 11,627m2⑤ 4,035m2⑤ 2,020m2⑥ 59.6%⑥ 26.2%① Chiyoda-ku⑦ Jul. 2003

⑦ Oct. 2003 etc.

②－

⑧ 2,920 mn yen⑧ 2,920 mn yen③ Apr. 2014
11,034㎡④(ground area)

A－10 Oval Court Ohsaki Mark West① Chiyoda-ku① Shinagawa-ku② SRC② S・SRC

B1/9F

B2/17F③ Mar. 1989

③ Jun. 2001

④ 5,889m2④ 28,576m2⑤ 5,889m2⑤ 4,025m2⑥ 100.0%⑥ 23.9%⑦ May. 2004

⑦ Jun. 2004

⑧ 5,100 mn yen⑧ 3,500 mn yen

A－13 Across Shinkawa Bldg. Annex

B2/10F③ Jul. 1989

A－15 Minami Azabu Bldg.

A－11 Shinjuku Square Tower① Shinjuku-ku
S・RC・SRC②
B4/30F③ Oct. 1994
④ 78,796m2⑤ 18,933m2⑥ 67.4%⑦ Jul. 2004 etc.
⑧ 14,996 mn yen

A－16 Shinagawa Canal Bldg.

11,034㎡(ground area)⑥ 100%⑤⑦ Mar. 2012
⑧ 36,000 mn yen

A－12 BYGS Shinjuku Bldg.
① Shinjuku-ku② SRC

B2/14F③ Sep. 1985

④ 25,733m2⑤ 25,733m2⑥ 100.0%⑦ Nov. 2004 etc.
⑧ 15,121 mn yen

A－17 Rokubancho Building① Minato-ku① Minato-ku① Chiyoda-ku② S 9F② S B1/8F② SRC③ Jun. 1994

③ Jun. 1992

③ Jul. 2008

③ Oct. 1991

④ 5,535m2④ 4,570m2④ 5,216m2④ 4,205m2⑤ 1,233m2⑤ 4,570m2⑤ 1,677m2⑤ 4,205m2① Chuo-ku② S・SRC

B2/10F

B3/7F① Shinjuku-ku
SRC・RC・S②
B5/54F③ Oct. 1979

⑤ 8,172m2⑥ 35.5%⑥ 100.0%⑥ 45.6%⑥ 100.0%⑥ 8.6%⑦ Nov. 2004

⑦ Jul. 2008

⑦ Dec. 2008

⑦ Dec. 2009

⑧ 710 mn yen⑧ 3,760 mn yen⑧ 1,870 mn yen⑧ 2,800 mn yen④ 176,607m2⑧ 21,000 mn yen⑦ Mar. 2008

1. The property overview indicates (1) location, (2) structure/floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition dateand (8) acquisition price. The same applies hereafter.

43

4. Appendix

A－18 JPR Harajuku Bldg.

Portfolio List（Central Tokyo）

A－19 Tokyo Tatemono Kyobashi Building① Chuo-ku

② SRC

② SRC

② S 8F② SRC

B1/10F⑥ 100.0%③ Mar. 1989

⑦ Dec. 2009

④ 6,466m2⑧ 8,400 mn yen

A－5 Yurakucho Ekimae Building (Yurakucho Itocia)① Chiyoda-ku⑤ 1,087m2② S-SRC⑥ 1.9% (2.1%)

B4/20F③ Oct. 2007

⑦ Aug. 2008

④ 71,957m2⑧ 3,400 mn yen

B2/9F③ Jun. 2002

③ May. 2009

③ Oct. 1982

④ 4,420m2④ 7,191m2④ 7,683m2④ 8,851m2⑤ 4,420m2⑤ 7,191m2⑤ 7,683m2⑤ 2,043m2⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 26.6%⑦ Feb. 2010

⑦ Mar. 2010

⑦ May. 2010

⑦ Aug. 2011

⑧ 5,250 mn yen⑧ 5,100 mn yen⑧ 15,050 mn yen⑧ 3,400 mn yen

A－25 Shibadaimon Center Bldg.
① Minato-ku② S・SRC

B1/10F③ Jul. 1993
④ 11,419m2⑤ 5,285m2

2

B1/9F

B1/9F

③ Jan. 1981

④ 24,560m2② SRC

A－22 Ginza Sanwa Bldg.

① Shibuya-ku① Chiyoda-ku
S・SRC・RC②
B2/12F③ Feb. 1995

⑤ 6,466m2

A－21 JPR Sendagaya Bldg.

① Chuo-ku

A－24 Science Plaza - Yonbancho Plaza① Shibuya-ku

A－20 JPR Nihonbashi-horidome Building① Chuo-ku⑤ 3,213m⑥ 65.4%⑥ 22.4%⑦ Dec. 2013 etc.

⑦ Dec. 2013
⑧ 2,660 mn yen

A－1 JPR Shibuya Tower Records Bldg.

⑧ 4,220 mn yen

A－2 JPR Daikanyama

A－3 JPR Jingumae 432

A－4 Shinjuku Sanchome East Bldg.

① Shibuya-ku① Shibuya-ku① Shibuya-ku② SRC・S② RC② S・SRC

B3/8F

B2/2F

B1/7F

③ Feb. 1992

③ Jul. 2002

③ Feb. 2006

④ 8,449m2④ 668m2④ 1,066m2⑤ 8,449m2⑤ 668m2⑤ 1,066m2⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Jun. 2003

⑦ Oct. 2004

⑦ Mar. 2006

⑧ 12,000 mn yen⑧ 2,160 mn yen⑧ 4,275 mn yen① Shinjuku-ku
S・SRC・RC②
B3/14F③ Jan. 2007
④ 24,617m2⑤ 2,328m2⑥ 12.5%⑦ Mar. 2007 etc.
⑧ 2,740 mn yen

44

4. Appendix

Portfolio List（Greater Tokyo）

B－1 Arca East

B－2 JPR Chiba Bldg.
① Sumida-ku

B－3 JPR Yokohama Nihon Odori Bldg.

B－5 Shinyokohama 2nd Center Bldg.

B－6 Kawaguchi Center Bldg.

① Chiba, Chiba

Yokohama,①
Kanagawa

Yokohama,①
Kanagawa① Kawaguchi, Saitama③ Mar. 1997

② S・SRC② SRC② S・SRC③ Feb. 1994

④ 34,281m2③ Jan. 1991

③ Oct. 1989

③ Aug. 1991

④ 28,420m2⑤ 6,911m2④ 9,072m2④ 9,146m2④ 7,781m2⑤ 15,401m2⑥ 38.3%⑤ 9,072m2⑤ 9,146m2⑤ 7,781m2⑥ 86.5%⑦ Nov. 2001

⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Feb. 2004

⑧ 5,880 mn yen⑦ Dec. 2001

⑦ Nov. 2001

⑦ Sep. 2002 etc.

⑧ 8,100 mn yen⑧ 2,350 mn yen⑧ 2,927 mn yen⑧ 1,490 mn yen② S・SRC

B3/19F

B－11 Olinas Tower

B1/13FB－7 JPR Ueno East Bldg.

B1/11F

B－8 Tachikawa Business Center Bldg.

① Taito-ku① Tachikawa, Tokyo② S・SRC

B1/8F② S・SRC

B1/12F③ Oct. 1992

③ Dec. 1994

④ 8,490m2④ 14,706m2⑤ 8,490m2⑤ 4,812m2⑥ 100.0%⑥ 47.9%⑦ Mar. 2004

⑦ Sep. 2005 etc.

⑧ 3,250 mn yen⑧ 3,188 mn yen

B2/12F

B－9 Rise Arena Bldg.
① Toshima-ku
RC・SRC・S②
B3/42F③ Jan. 2007

② S・SRC

B2/15F

B－10 Yume-ooka Office Tower④ 91,280m2

Yokohama,
Kanagawa
S・SRC・RC②
B3/27F③ Mar. 1997

⑤ 5,972m2④ 185,976m2⑥ 25.2%⑤ 14,196m2⑦ Mar. 2007

⑥ 48.8%⑧ 5,831 mn yen⑦ Jul. 2007①

⑧ 6,510 mn yen

B-12 Tokyo Tatemono Yokohama Building① Sumida-ku
SRC・RC・S②
B2/45F③ Feb. 2006
2

④ 257,842m⑤ 23,692m2⑥ 23.3%⑦ Jun. 2009

B－13 Omiya Prime East

Yokohama,①
Kanagawa① Saitama, Saitama② SRC② S 9F

B1/9F③ May. 1981

③ Feb. 2009

④ 8,772m2④ 9,203m2⑤ 8,772m2⑤ 9,203m2⑥ 100.0%⑥ 100.0%⑦ Dec. 2010

⑦ Mar. 2013

⑧ 7,000 mn yen⑧ 6,090 mn yen⑧ 31,300 mn yen

B－1 Tanashi ASTA

B－3 Cupo-la Main Bldg.
① Nishitokyo, Tokyo② SRC

B2/17F③ Feb. 1995
④ 80,675m2⑤ 20,727m2⑥ 43.6%（51.3%）⑦ Nov. 2001
⑧ 10,200 mn yen

B－4 JPR Musashikosugi Bldg.

① Kawaguchi, Saitama
S・RC・SRC②
B2/10F③ Jan. 2006
2

④ 48,321m
2⑤ 5,870m

B－5 Musashiurawa Shopping Square

B－6 Kawasaki Dice Bldg.

Kawasaki,①
Kanagawa
SRC・RC・S②
B1/6F③ Mar. 1983

① Saitama, Saitama④ 28,930m2

Kawasaki,Kanagawa
S・SRC・RC②
B2/11F③ Aug. 2003

④ 18,394m2⑤ 14,465m2④ 36,902m2② S B1/4F③ Oct. 2005①

⑥ 16.7%(19.2%)⑤ 18,394m⑥ 50.0%⑤ 13,925m2⑦ Mar. 2006

⑥ 100.0%⑦ Mar. 2007

⑥ 46.6%⑧ 2,100 mn yen⑦ Sep. 2006

⑧ 4,335 mn yen⑦ Apr. 20072

⑧ 7,260 mn yen⑧ 15,080 mn yen

45

4. Appendix

Portfolio List（Other Cities）

C－1 Niigata Ekinan Center Bldg.

C－4 Tokyo Tatemono Honmachi Bldg.

① Niigata, Niigata② S・SRC

B1/10F① Osaka, Osaka② SRC③ Feb. 1970

④ 19,950m2④ 14,619m2⑤ 5,444m2⑤ 7,709m2⑥ 32.9% (58.0%)⑥ 72.0% (71.0%)⑦ Nov. 2001

⑦ Nov. 2001

⑧ 2,140 mn yen⑧ 4,150 mn yen

C－14 Tenjin 121 Bldg.

C－9 JPR Naha Bldg.

① Fukuoka, Fukuoka
S・RC B1/12F,
S1F③ Jun. 1985

B3/9F

③ Mar. 1996

C－13 Sompo Japan Wakayama Bldg.

C－7 JPR Hakata Bldg.

②

C－12 Sompo Japan Sendai Bldg.
① Naha, Okinawa① Sendai, Miyagi② SRC・S

② SRC

12F

B1/12F③ Oct. 1991

③ Dec. 1997

④ 5,780m2④ 10,783m2④ 9,828m2⑤ 5,780m2⑤ 10,783m2⑤ 9,828m2⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Nov. 2001

⑦ Jun. 2002

⑦ Nov. 2001

⑧ 1,560 mn yen⑧ 3,150 mn yen⑧ 2,900 mn yen

C－17 JPR Dojima Bldg.

C－18 JPR Hakata-chuo Bldg.

C－19 JPR Nagoya Fushimi Bldg.

Wakayama,①
Wakayama① Fukuoka, Fukuoka① Osaka, Osaka① Fukuoka, Fukuoka① Nagoya, Aichi② S 9F② S・SRC

② SRC

② SRC

② SRC

③ Jul. 1996

③ Jul. 2000

③ Oct. 1993

③ Feb. 1993

③ Mar. 1991

④ 6,715m2④ 8,690m2④ 5,696m2④ 3,874m2④ 10,201m2⑤ 6,715m2⑤ 3,117m2⑤ 5,696m2⑤ 3,874m2⑤ 10,201m2⑥ 100.0%⑥ 52.2%⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Jun. 2002

⑦ Jun. 2002

⑦ Jan. 2004

⑦ Jun. 2004

⑦ Mar. 2005

⑧ 1,670 mn yen⑧ 2,810 mn yen⑧ 2,140 mn yen⑧ 1,920 mn yen⑧ 4,137 mn yen

13F

B2/9F

8F

B1/9F

C－20 Yakuin Business Garden

C－1 JPR Umeda Loft Bldg.

C－3 Benetton Shinsaibashi Bldg.

C－4 Housing Design Center Kobe

C－5 JPR Chayamachi Bldg.

① Osaka, Osaka① Osaka, Osaka① Kobe, Hyogo① Osaka, Osaka② SRC② S B2/10F② SRC･S② S・SRC③ Apr. 1990

③ Feb. 2003

③ Jun. 1994

③ Jun. 1994

B1/8F

B2/11F

9F④ 17,897m2④ 5,303m2④ 33,877m2④ 3,219m2① Fukuoka, Fukuoka⑤ 22,286m2⑤ 17,897m2⑤ 5,303m2⑤ 33,877m2⑤ 3,219m2② SRC⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 100.0%③ Jan. 2009⑦ Aug. 2012

⑦ May. 2003 etc.

⑦ May. 2005

⑦ Sep. 2005

⑦ Aug. 2006

④ 22,286m2⑧ 10,996 mn yen⑧ 13,000 mn yen⑧ 5,430 mn yen⑧ 7,220 mn yen⑧ 6,000 mn yen

14F

1. The asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016.

46

4. Appendix

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

Having expanded IR information by adding a variety of contents, JPR provides
information in a timely manner
8955
Property Information• [Occupancy Rate]
Occupancy Rate: data for each property (Excel)
updated monthly• [Property Data Library]
Property Data Book, Historical Data by Property
Appraisal Summary• [Portfolio data]
Asset class, Area, Ratio of Properties by Property
Acquisition Channel• [Video Presentation of Major Properties]

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

Digest of Financial Results• [Digest of Financial Results]
Provides movie that summarizes the latest
analyst meeting in a compact manner• [IR Mail Delivery Service]
Distribution of News Release47