29th
Report on Operating and Management Results
Twenty-Ninth Fiscal Period
Semi-Annual ReportJapan Prime Realty Investment Corporation

Shinjuku Center BuildingDetermined Cash Distribution

Forecast Cash Distribution (reference)¥6,756¥7,000(for the 29th fiscal period ended June 2016)(for the 30th fiscal period ending December 2016)

JPR Sendagaya Bldg.

Contents
JPR at a Glance

1

Asset Management Report30

Message to Our Unitholders

2

Financial Statements

52

Account Highlights

3(1) Balance Sheets

52

Message from Asset Manager

4(2) Statements of Income and Retained Earnings

54

Internal Growth Strategy

6(3) Statements of Changes in Unitholders’ Equity

55

External Growth Strategy

7(4) Statements of Cash Distributions

56

Financial Strategy

8(5) Statements of Cash Flows

57

Initiatives on Governance9(6) Notes to Financial Statements

58

Portfolio Status

10(7) Detailed Schedules

67

Overview of Portfolio Properties

12(8) Independent Auditor’s Report71

Initiatives on Environmental Friendliness27(9) Other Notes (Information only)

72

Structure and History of JPR

28

Overview of Asset Manager

29

Investor Information

73

JPR at a Glance
Japan Prime Realty Investment Corporation (JPR) is a J-REIT with a large-scale combined portfolio that is
focused on office properties in Tokyo (Note). It aims to achieve stable growth of cash distributions, buildingon the quality of its properties and solid management operations.
(Note) “Office properties in Tokyo” represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba,
Kanagawa and Saitama Prefectures) (the same applies throughout this report).

Portfolio
JPR has built a large-scale combined portfolio of assets
under the basic policy of making investments focused on
office properties in Tokyo.

No. of Properties and Size

62 properties 410.3 billion yen
Investment Ratio by Area
Tokyo:

83.1% Other Cities: 16.9%
Investment Ratio by Asset Class

Office:76.8%

Financial BaseJPR has constructed a financial base under the basic
policy of conservatively controlling LTV and utilizing
long-term, fixed interest rate debts.

Retail:

23.2%

LTV

42.1%
Ratio of Long-Term, Fixed Interest Rate Debts

100.0%
Issuer Rating

AA- (R&I)
Sponsors
JPR makes the best of the comprehensive capabilities in
the real estate, construction and finance areas of the 5sponsors led by Tokyo Tatemono together with Taisei
Corporation, Yasuda Real Estate, Sompo Japan
Nipponkoa Insurance and Meiji Yasuda Life Insurance.

(Note) Aggregate value of properties acquired from and based on information provided bysponsors, etc. refers to the aggregate acquisition price of real estate, etc. JPR has acquiredsince its listing either from the sponsors, etc. or based on the information provided by thesponsors, etc., and includes the properties already sold.
Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment(the same applies throughout this report).

A (S&P)

Aggregate Value of Properties Acquired from andBased on Information Provided by Sponsors, etc.

311.6 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

1Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko

Executive Officer

Nobuhisa Kusanagi

Supervising Officer

Masato Denawa

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

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
We express our heartfelt condolences to all those affected by the Kumamoto Earthquake thatbroke out in April 2016, and sincerely pray that the affected areas will recover and restore as soon
as possible.
Having settled the 29th fiscal period (January 1, 2016 – June 30, 2016) at the end of June 2016, we
renew our cordial appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio over the
medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

2

Japan Prime Realty Investment Corporation

Account Highlights
Distribution per unit for the 29th fiscal period ended June 30, 2016 came to 6,756 yen, marking the 5thstraight fiscal period with a period-on-period increase. JPR anticipates another period-on-period increase
for the 30th fiscal period ending December 2016, forecasting distribution per unit of 7,000 yen.

Distribution per Unit(yen/unit)
7,200
Forecast cash distribution

7,000

Determined cash distribution(Forecast)

Determined cash distribution (current (29th) fiscal period)
Forecast cash distribution (next (30th) fiscal period)

6,756

6,800

6,588
6,351

6,400

6,150
6,031

6,006

6,419

6,630

6,510

6,360

6,180

6,050

6,000

5,800

5,800

5,600

0
23rd Period(Jun. 2013)

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

Operating Results
23rd Period
ended
Jun. 2013

24th Period
ended
Dec. 2013

25th Period
ended
Jun. 2014

26th Period
ended
Dec. 2014

27th Period
ended
Jun. 2015

28th Period
ended
Dec. 2015

29th Period
ended
Jun. 2016

Operating revenues(million yen)

13,27813,591

13,734

13,902

14,251

14,105

14,246

Ordinary income(million yen)

4,975

4,899

5,073

5,239

5,566

5,746

5,897

Net income(million yen)

4,974

4,954

5,072

5,238

5,603

5,749

5,896

Unitholders’ equity
per unit(yen)

238,929

238,903

239,046

239,246

247,529

247,696

247,8623

Message from Asset Manager

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

I sincerely appreciate the support you have extended to Japan Prime Realty Investment Corporation (JPR). Let me
report on the operating and management results of JPR for the 29th fiscal period ended June 2016.

1

Financial Results of the 29th Fiscal Period Ended June 2016❚❚ Cash distribution per unit: ¥6,756(up ¥168 period-on-period)❚❚ Achieved the 5th straight period withan increase in cash distributions❚❚ Rate of increase in cash distributions: 12.5%(compared with the 24th Period)2

Forecast Cash Distributions for the Next (30th) Fiscal Period❚❚ Cash distribution per unit: ¥7,000(up 244 yen period-on-period)

4

Cash distribution per unit came to 6,756 yen, up 168 yen
from the 28th fiscal period, marking the fifth consecutive
fiscal period with an increase. Compared from the cash
distribution per unit five periods ago (6,006 yen), theamount represents an increase by 750 yen, or up 12.5%,
demonstrating steady growth. The increase in cash
distributions was achieved mainly by steady internal
growth through an increase in rents. The period-end
occupancy rate rose to the 98% level, and we madeprogress in our endeavors for upward revision of rents
upon contract renewal and raising rents for new
contracts.

In the next (30th) fiscal period, we anticipate to achieve acontinued increase in cash distribution per unit, which is
expected to reach the 7,000 yen level, the target we set in2016, earlier than is assumed. We should be able toJapan Prime Realty Investment Corporation

Actual Results and Forecast of Cash Distribution per Unit
Phase targeting
7,000 yenPhase targeting 6,500 yen(yen/unit)
7,250

Phase for renewed record highs

Highest since listing:

7,122 yenfor the 13th Period (Jun. 2008)

7,000
7,000

6,756
6,750

6,588
6,500

6,351
6,250

6,150
6,006

6,000

Strategies for growth・Increase the occupancy rate
・Reinforce property competitiveness・Acquire blue-chip properties

6,419

Up 582 yen

Up 412 yenover 4 fiscal periods

over 2 fiscal periods

Growing by 9.7％

Growing by 6.3％

0
24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)(forecast)realize steady internal growth with higher rents by conducting asset management that makes the best use of the highquality of the portfolio. We will continue our efforts to enhance unitholder value through “continuous growth of cash
distributions.”

3

Operating and Management Status

JPR is well managed and in good shape for the moment. Although uncertainty is felt for the outlook of corporate
performances due to the yen’s appreciation, the vacancy rate in the office market in Tokyo has continued to decrease.
JPR has also seen the vacancy rate of its properties drop, mainly for the office properties in Central Tokyo, reaching
the level that is lowest in recent years as of the end of the 28th fiscal period. In addition, raising of rents upon tenant
replacement and upward revision of rents upon contract renewal have expanded both in terms of the number of cases
and monetary amounts, continuing to show steady internal growth.
In the for-sale real estate market, investors remain highly willing to purchase properties and transactions are
conducted at even higher prices. During the 29th fiscal period, we investigated possible investments by JPR primarily
in office properties in Tokyo and retail properties, but no acquisition was closed and completed. Going forward, we
will see to it that JPR continues its vigorously selective investments in blue-chip properties while working to improve
the quality of its portfolio through asset replacement with property sales.
* Please refer to the following pages for our asset management strategies.

5Internal Growth Strategy
JPR has achieved internal growth through an increase in rents while maintaining the occupancy rate at ahigh level, with its measures including flexible use of target rents proving effective.

Major Reinforcement Strategies
1. Flexibly use target rents

JPR conducts leasing by setting target rents, to be used upon concluding new contracts
or renewing existing contracts for respective properties, for each fiscal period in
accordance with the market trends.

2. R einforce investments forvalue enhancement

JPR works to raise rents for new contracts and reinforce property competitiveness byinvesting in interior fittings and facilities, etc. that meet tenant needs.

3. C ontinuously enhancetenant satisfaction

Deliberately responding to tenants and creating safe and secured environments areimportant initiatives that positively affect rent negotiations as well as help prevent
contract cancellations from happening.

4. S trategically use rent-free
periods

JPR uses rent-free periods strategically, intending to raise rents for new contracts andconduct upward revision of rents upon contract renewal in the future.

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
has remained at a high level of 97%
or higher.

(%)
100

Entire portfolio
99.8

99.7

99.6

99.6

96.9

97.0

97.2

95.7

25th Period(Jun. 2014)

98

96

Office properties

Retail properties
100.0

99.8
97.5

97.4

95.9

96.2

96.1

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

95.6
95.4

99.9

97.8
96.7

94
93.4
92

0

23rd Period(Jun. 2013)

24th Period(Dec. 2013)

29th Period(Jun. 2016)

Changes in Revised Amount of Monthly Rent, Etc.
By amount, upward revision of rents
has continued to surpass downward
revision since the 26th fiscal period
ended December 2014.

(million yen)
20

Upward revision

Downward revision

10

0

-10

-20

6

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

Japan Prime Realty Investment Corporation

External Growth Strategy
JPR is resolved to continuously work on investments focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investments in retailproperties as well as office properties in regional cities to enhance the stability of earnings.

Basic Strategy
1. Focused investments inoffice properties in Tokyo

Improve the quality of the portfolio by making investments focused on officeproperties in Tokyo that are expected to contribute to long-term growth

Compared with other regional cities, Tokyo allows expectations for more stable occupancy and higher rent levels, and is believed tooffer larger rooms for an increase of rents when the leasing market shows a recovery trend. Looking ahead, JPR will continue tomake investments focused on office properties in Tokyo, with an aim to further improve the quality of its portfolio and enhance its
growth potential over a long term.

2. Vigorously selective
investments in retailproperties as well as officeproperties in regional cities

For retail properties as well as office properties in regional cities, work to invest
in strictly selected blue-chip properties that can keep stable revenues at a certain
level

While securing growth potential by making focused investments in office properties in Tokyo, JPR will make vigorously selective
investments in urban retail properties with long-term, fixed-rent contracts and in large office properties in regional cities having ahigh competitive advantage in the areas, in order to complement the stability of earnings from the entire portfolio.

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

Yakuin Business
GardenThe Otemachi Tower (Land with
Leasehold Interest) was acquired froman SPC in which Tokyo Tatemono andTaisei Corporation have equity interests.

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

Tokyo Tatemono

Taisei Corporation
Yasuda Real Estate

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance■■ Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its sponsors, etc. andthat of properties acquired from third parties (total of properties
acquired based on the information provided by the sponsors andthose acquired other than from the sponsors, etc.) are almost equal,
standing at 49.7% for the former and 50.3% for the latter (on an
acquisition price basis).
JPR will work to increase property acquisition opportunities andconduct vigorously selective investments in blue-chip properties bybuilding sourcing abilities on its own instead of depending solely on
sponsor support.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Transactions withthird parties

50.3%

Properties acquired
other than fromsponsors, etc.

Properties acquired
based on information
provided by sponsors

30.9%
19.4%

Properties
acquired fromsponsors, etc.

49.7%

7

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

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debt largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixed interest ratedebts at 100%.
Major Financial Indicators

Status of Corporate Credit Ratings Assigned to JPR

Ratio of interest-bearing debts to total assets

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

42.1%

AA- (Stable)

Ratio of long-term, fixed interest rate debts

S & P (Standard & Poor’s Ratings Japan K.K.)

100.0%

Long-term:A (Stable)

Short-term:

A-1

Lengthening Maturity of Debts and Reducing Costs Simultaneously
JPR has successfully reduced debt cost while working to lengthen the maturity of debts.
Refinances in the 29th Fiscal Period(Average amount of refinanced loans thatmatured in the 29th fiscal period)

Average Maturity of the Entire Interest-Bearing Debts and Average Debt Cost
(%)
1.6

1.53

Average maturity (right axis)

Average maturity

4.7 years ➤ 9.3 years(up 4.6 years)

Average debt cost

1.27% ➤ 0.66%(down 0.61%)

Average debt cost (left axis)(years)
8.0

1.44
1.27

1.21

1.19

1.2

1.16

6.0

4.0

0.8

0.4

0.0

3.5
years

3.8
years

3.9
years

4.0
years

4.0
years

4.2
years

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

2.0

0.0

Expansion of Unrealized Gains
JPR’s unrealized gains have increased, given higher appraisal values in accordance with the recovery in the real estatemarket.
Status of Unrealized Gainsat the End of the 29th Period
Appraisal value

419.8 billion yen

Changes in Unrealized Gains and Losses since Listing
(%)
30.0

Unrealized gains or losses (right axis)

Ratio of unrealized gains or losses (left axis)

22.5

45

15.0

30

7.5

15

0.0

0

-7.5

-15

(up 8.4 billion yen period-on-period)
Unrealized gains

28.6 billion yen(up 7.3%)(up 9.5 billion yen period-on-period)-15.0

1st Period 5th Period(Jun. 2002) (Jun. 2004)

10th Period(Dec. 2006)(Note) Unrealized gains refer to the amount obtained by subtracting the period-end book value from the appraisal value.

8(billion yen)
60

15th Period(Jun. 2009)

20th Period(Dec. 2011)-30
25th Period 29th Period(Jun. 2014) (Jun. 2016)(at end of period)

Japan Prime Realty Investment Corporation

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

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

Member of the Board of JPR

Executive Officer:

Hirohito Kaneko (attorney)

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

Shareholder Composition of TRIM
Real estate
Real estate
Yasuda Real Estate

Shareholding ratio:

Tokyo Tatemono

Shareholding ratio:

40%

20%

Taisei Corporation

Shareholding ratio:

Finance

20%

Finance

Meiji Yasuda Life Insurance

Shareholding ratio:

Construction

10%

Sompo Japan Nipponkoa Insurance Inc.

(Asset Manager)
Tokyo Realty Investment
Management, Inc.

10%

Shareholding ratio:

Decision Making Based on Stringent Processes❚❚ Upon making decisions on property acquisitions, asset
management and other issues, TRIM conducts
stringent screening and takes other procedures fromvarious perspectives through designated committees
and other institutions.
❚❚ In particular, material transaction matters conductedwith the sponsors, etc. are screened and verified by theCompliance Committee as to their adequacy andrationality. The Committee employs an unanimous votefor approvals in principle.
❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.
Members of the Compliance Committee of TRIM
President and CEO
Corporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Ofﬁce
general manager

Special member (outside attorney)

Stringent Decision-Making Process(for property acquisitions)
Proposal, planning

Investment Management
Department

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties
Final decision on
acquisition
Decision making on
acquisition over certain amountConclude agreement

Compliance Committee /JPR’s Board of Directors
Investment Subcommittee
TRIM’s Board of Directors
Acquisition

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

9Portfolio Status
Portfolio Management Standards
Upon listing, JPR had the portfolio management standards that set the target investment ratio by area of roughly 60%
for Tokyo versus 40% for Other Cities and the target investment ration by asset class of roughly 80% for officeproperties versus 20% for retail properties. In the 16th fiscal period ended December 2009, however, JPR changed thestandards as follows with a policy of focusing investments in office properties in Tokyo.

Target investment ratio by area

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

Office: 70 - 90%
Retail: 30 – 10%

Asset Size Expansion Trends(billion yen)

450

Retail properties

Office properties in Other Cities

Office properties in Tokyo

410.3

400
350
300
250
200
150
100
50
0
Start of 1
management

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

(Note) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.

Changes in Investment Ratios by Area and by Asset Class
Focused investments in office properties in Tokyo have resulted in an increase in the investment ratio of officeproperties in Tokyo as of the end of the 29th fiscal period by 24.1% compared with the end of the 1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 29th Fiscal Period (June 30, 2016)

Increase in the investment ratio of
office properties in Tokyothrough focused investments
Office in
Tokyo
43.5%

Office in
Other Cities
42.1%
Retailin Tokyo
14.4%+24.1%

Retail in
Other Cities
7.7%
Office in
Other Cities
9.2%
Retailin Tokyo
15.5%

Officein Tokyo

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

1029(at period end)Japan Prime Realty Investment Corporation

JPR has built a portfolio that enjoys the utmost advantages of diversified investments, including the growthpotential of office properties located in Central Tokyo, the stability of urban retail properties with longterm lease agreements, etc., and the profitability of office properties in Greater Tokyo and Other Cities.

Status of Diversified Investments (asset size by area/asset class and NOI yields)(%)

10

Circle size: asset size (based on acquisition price)
Height of the circle center (left axis): NOI yield (based on acquisition price; annualized)

Office properties
in Central Tokyo

Office properties
in Greater Tokyo

83.9 billion yen
5.4%

5

193.6 billion yen
3.8%

Office properties
in Other Cities

Retail properties

37.5 billion yen
6.0%

95.2 billion yen
5.2%

Portfolio average

4.6%

0

Status of Tenant Diversification (ratio of tenants occupancy of 1% or more)
If the ratio of occupancy (ratio of occupied floor space in the portfolio) by a single tenant is low, it reduces the risk oflower revenue when the tenant cancels contract in the future. JPR keeps the ratio low to enhance the stability ofrevenue.
1% or more by sponsors, etc.
1 tenant / 1.7%

1% or more by other tenants(except for sponsors, etc. and retail tenants)
2 tenant / 2.4%

Number of tenants
Less than 1%

614 tenant / 66.1%

626

companies

1% or more by retail tenants

9 tenant / 29.8%(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees when the tenant subleases the relevant property to sublessees and there is a concluded lease contract in which the rent to be paid by
the tenant varies in accordance with the situation of leasing to the sublessees.

11

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

Property Name

Location

Acquisition Date

Leasable
Percentage ofPortfolio Acquisition Floor Space(m2)
Price (%)

A-1

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

4.0

8,011.75

3.9

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

5.8

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

3.7

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.37

4.4

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

1.0

3,265.34

7.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.7 14,468.38

6.8

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,241.22

7.3

Oct. 15, 2003

1,800

0.4

Apr. 15, 2005

1,120

0.3

1,937.40

5.2

2,920

0.7

A-8

Fukuoka Bldg.

Chuo-ku, Tokyo

Total
A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,235.05

4.9

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.9

4,088.44

3.5

Jul. 2, 2004

10,0002.4
0.0
1.0 19,284.71

1.3

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

OfficeSep. 26, 2008180

Mar. 25, 2015

4,000

Oct. 21, 2015

786

0.2

Total

14,966

3.6

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.2

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,216.93

3.1

15,121

3.7

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

21,0000.2

1,253.39

4.7

5.1

8,863.98

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

Jul. 14, 2008

1.3

3,760

0.9

3,405.73

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

6.0

Dec. 19, 2008

1,870

0.5

1,700.57

A-17

Rokubancho Bldg.

5.3

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.7

2,488.36

A-18

7.7

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

2.0

4,763.38

6.8

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.3

3,551.01

6.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.2

5,299.89

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.7

6,177.74

2.6

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,896.69

4.5

A-23

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.8 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.27

3.1

Dec. 6, 2013

3,420

0.8

800

0.2

5,401.46

5.6

4,220

1.0

A-25

Shibadaimon Center Building

Minato-ku, Tokyo

Jul. 30, 2014
Total

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0002.9

8,076.85

5.8

A-2

JPR Daikanyama

Shibuya-ku, Tokyo

Oct. 5, 2004

2,160

0.5

651.2912.5

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 24, 2006

4,275

1.0

1,027.33

5.4

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,347.81

1.6

2,740

0.7

3,400

0.8

1,101.92

3.0

53.2 155,531.73—

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

Total
A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo
SubtotalAug. 27, 2008

¥218,192(Note 1) The table above shows properties owned by JPR as of June 30, 2016.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.

12

PML (%)

A-2

Total

RetailAcquisitionPrice(in millions)Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.4

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.6

5,536.18

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

6.7

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

10.5

1,490

0.4

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

2.0 15,420.07

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.8

6,476.53

3.9

Sep. 30, 2005

888

0.2

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

2,300

0.6

4,683.40

4.1

3,188

0.8

Total

RetailLeasable
Percentage ofPortfolio Acquisition Floor Space(m²)
Price (%)

B-1

Total

OfficeAcquisitionPrice(in millions)

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.4

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.6 12,000.08

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,300

7.6 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.7

6,494.09

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.5

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.5 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,260

1.8 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.1 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,0803.7 12,116.35

5.9¥122,891

30.0 189,769.33—

AcquisitionPrice(in millions)Leasable
Percentage ofPortfolio Acquisition Floor Space(m²)
Price (%)

PML (%)

Subtotal

Other Cities (15 Properties)
Property
NumberOfficeRetailProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,326.88

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,158.13

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,568.43

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.8

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.38

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.7

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,930.71

5.0

C-18

JPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 11, 2004

1,920

0.5

3,290.42

0.8

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.7 16,654.33

1.6

May 15, 2003

8,000

1.9

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

1.2 18,586.97

Total

13,000

3.2

4.3

C-3

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.3

5,303.98

11.5

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.8 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

1.5

2,485.79

8.4

Subtotal¥69,2236,000

16.9 131,044.75

—

Total

¥410,306

100.0 476,345.81

2.0(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the second decimal place.
(Note 4) A lthough the asset class of Benetton Shinsaibashi Bldg. was converted from “retail” to “office” as of July 30, 2016, it is classified as the asset class as of the end of the period (June 30, 2015) in thisSemiannual Report.

13

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-4
A-12

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

Tokyo

A-21
Shibuya Ward

A-5

Ichigaya

A-23

Harajuku

A-3
Shinbashi

A-18

A-1

A-2 A-1

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

A-13
Keiyo Line

Chuo Ward

A-25

Shibuya

Sobu Line

A-20
A-3

Minato Ward

Hamamatsucho

A-2

Tamachi
Yamanote Line

A-15

GotandaShinagawaA-7

Shinagawa Ward

A-6
A-16

A-10
Ohsaki

Tokaido Shinkansen
Yokosuka Line

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

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

A Central Tokyo
Chiyoda Ward
Chuo Ward

14

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

■ A-1
■ A-2
■ A-3
■ A-4
■ A-5

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

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

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

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main Line

Shinjuku

Tachikawa

B-11
B-1 Sobu Main Line

Ueno

Funabashi

B-7

Kinshicho

Tokyo
Keiyo Line

ShibuyaNambu Line

Chiba

B-2

Shinagawa

■ B-1
■ B-3
■ B-4
■ B-5

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

Musashikosugi

KANAGAWA

B-4

Yokohama Line

Tokaido Shinkansen

Musashikosugi
Tokaido Main Line
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

RetailUchibo Line

B-3

Kamiooka

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

OSAKA

Retail
■ C-1
■ C-3
■ C-4
■ C-5

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

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

C-9

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

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
WAKAYAMA

C-13

15

Portfolio Properties
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,874 million
679.06 m2

Total Floor Space
Structure/Floors
Completed

4,351.46 m2
SRC B1/8F
February 1993

Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area

550.06 m2

Total Floor Space
Acquisition Price
Site Area¥16,276 million
1,751.13 m2

Total Floor Space

14,995.09 m

Structure/Floors
Completed

CompletedFebruary 1993

Property Manager

Shin-Kojimachi Bldg.

Acquisition Price
Site Area

SRC/RC B1/8F
December 1989

Tokyo Tatemono Co., Ltd.

A-6

Chiyoda Ward, Tokyo

4,117.70 m2

Property Manager

Tokyo Tatemono Co., Ltd.

2A-4Structure/Floors

S/RC/SRC B2/13F¥2,100 million

MS Shibaura Bldg.
Minato Ward, Tokyo¥2,420 million
657.80 m2

Total Floor Space
Structure/Floors
Completed

5,152.98 m2
SRC B1/9F
October 1984

Property Manager

Tokyo Tatemono Co., Ltd.

A-5

JPR Crest Takebashi Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥4,000 million
636.90 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

4,790.68 m2
SRC B1/9F
September 1999

Tokyo Tatemono Co., Ltd.

16

Acquisition Price
Site Area
Total Floor Space¥11,200 million
8,992.18 m2

Structure/Floors
Completed

31,020.21 m

Property Manager
2

SRC/RC/S B2/13F
February 1988

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-7

OfficeRetailGotanda First Bldg.

A-8

Shinagawa Ward, Tokyo

Acquisition Price
Site Area

Fukuoka Bldg.
Chuo Ward, Tokyo

Acquisition Price¥2,920 million¥2,920 million

Site Area

1,551.19 m

1,302.17 m2

2

Total Floor Space
Structure/Floors
Completed

Total Floor Space

10,553.34 m2
SRC/RC B2/11F
July 1989

Tokyo Tatemono Co., Ltd.

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price
Acquisition Price
Site Area
Total Floor Space¥5,100 million
1,058.04 m

Structure/Floors
Completed

SRC B1/9F

Site Area¥10,180 million
8,409.52 m2

March 1989

(entire redevelopment project)
Total Floor SpaceTokyo Tatemono Co., Ltd.

(entire redevelopment project)

25,888.82 m2

May 1990

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ichigaya Bldg.

SRC B2/10F

Completed

Property Manager

A-9

11,627.74 m2

Structure/Floors

Property Manager

Court Ohsaki Mark West
A-10 Oval
Shinagawa Ward, Tokyo
Acquisition Price
Site Area

78,796.00 m2

Structure/Floors

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

Shinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo¥3,500 million
4,006.00 m

Acquisition Price
Site Area

Structure/Floors
Completed
Property Manager

28,575.80 m2
S/SRC B2/17F
June 2001

Tokyo Tatemono Co., Ltd.

¥710 million
858.48 m2

2

Total Floor Space

S/RC/SRC B4/30F

Completed

Total Floor Space
Structure/Floors
Completed

5,535.90 m2
S/SRC B2/10F
June 1994

Property Manager

Tokyo Tatemono Co., Ltd.

17

Portfolio Properties
Central Tokyo

OfficeRetailCenter Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space¥15,121 million
3,522.46 m2
25,733.10 m

Structure/Floors
Completed

SRC B2/14F
April 1985

Property Manager

Tokyo Tatemono Co., Ltd.

2

Azabu Bldg.
A-15 Minami
Minato Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space¥21,000 million
14,917.11 m2

Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

176,607.89 m

Tokyo Tatemono Co., Ltd.

2Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥3,760 million
778.09 m2

Total Floor Space
Structure/Floors
Completed

4,570.63 m2
S 9F
June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo
Acquisition Price
Site Area¥1,870 million
828.82 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,216.21 m2
S B1/8F
July 2008

Tokyo Tatemono Co., Ltd.

18

Acquisition Price
Site Area
Total Floor Space

¥8,400 million
1,205.07 m2

Structure/Floors
Completed

6,466.94 m

Property Manager
2

SRC B1/9F
March 1989

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailBldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo

Tatemono Kyobashi Bldg.
A-19 Tokyo
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,800 million
716.95 m2

Total Floor Space
Structure/Floors
Completed

4,205.09 m2
SRC B3/7F
October 1991

Property Manager

Tokyo Tatemono Co., Ltd.

Nihonbashi-horidome Bldg.
A-20 JPR
Chuo Ward, Tokyo
Acquisition Price
Site Area¥5,100 million
937.59 m2

Total Floor Space
Structure/Floors
Completed

7,190.82 m2
SRC B1/9F
June 2002

Property Manager

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥5,250 million
547.10 m2

Structure/Floors

SRC/S B1/10FF

Completed

January 1981

4,419.79 m

Property Manager

Tokyo Tatemono Co., Ltd.

2

Sanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo

Acquisition Price¥3,400 million

Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F

Completed

October 1982

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area
Total Floor Space
Acquisition Price
Site Area
Total Floor Space¥15,050 million
2,217.49 m2
7,683.19 m

Structure/Floors
Completed
Property Manager

2

S 8F
May 2009

Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed¥2,660 million
5,289.01 m2
24,560.36 m2
S/SRC/RC B2/12F
February 1995

Property Manager

Nomura Real Estate Partners Co., Ltd.

19

Portfolio Properties
Central Tokyo

OfficeRetailOtemachi Tower (Land with Leasehold Interest)
A-23 The
Chiyoda Ward, Tokyo

Center Building
A-25 Shibadaimon
Minato Ward, Tokyo
Acquisition Price¥4,220 million

Site Area

1,915.50 m2

Total Floor Space

11,419.93 m2

Structure/Floors

S/SRC B1/10F

Completed

July 1993

Property Manager

Nomura Real Estate Partners Co., Ltd.

A-1

Acquisition Price
Site Area¥36,000 million
11,034.78 m

Structure/Floors
Completed–

Shibuya Ward, Tokyo––2

Total Floor SpaceJPR Shibuya Tower Records Bldg.

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

A-2

JPR Daikanyama
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥2,160 million
277.12 m2

Total Floor Space
Structure/Floors
Completed

668.09 m2
RC B2/2F
July 2002

Property Manager

Jones Lang LaSalle K.K.

A-3

JPR Jingumae 432

Site Area

Site Area¥4,275 million
198.10 m

Total Floor Space
Structure/Floors
Completed

Structure/Floors

S/SRC B1/7F

Jones Lang LaSalle K.K.

February 1992

8,449.56 m

Property Manager

Tokyo Tatemono Co., Ltd.

2

Shinjuku Sanchome East Bldg.
Shinjuku Ward, Tokyo

Acquisition Price
Site Area

1,066.81 m2

SRC/S B3/8F

Completed¥2,740 million
2,578.69 m2

2

February 2006

Property Manager¥12,000 million
1,010.47 m2

Total Floor Space

A-4

Shibuya Ward, Tokyo

Acquisition Price20

Acquisition Price

Total Floor Space
Structure/Floors
Completed
Property Manager

24,617.65 m2
S/SRC/RC B3/14F
January 2007

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-5

Office/ Greater Tokyo

RetailYurakucho Ekimae Bldg. (Yurakucho Itocia)
Chiyoda Ward, Tokyo

Acquisition Price

OfficeB-1

RetailArca East
Sumida Ward, Tokyo¥3,400 million

Site Area

6,808.12 m2

Total Floor Space
Structure/Floors

71,957.65 m2
S/SRC B4/20F

Completed

October 2007

Property Manager

Tokyo Tatemono Co., Ltd.

B-2

JPR Chiba Bldg.
Chiba City, Chiba
Acquisition Price¥2,350 million

Site Area

1,382.35 m2

Total Floor Space
Structure/Floors

9,072.57 m2
S/SRC B1/13F

Completed

January 1991

Property Manager

Site Area(Note) The property manager was changed
from Tokyo Tatemono Co., Ltd. on
March 1, 2016.

Total Floor Space

Taisei-Yuraku Real Estate Co., Ltd. (Note)

B-3

Acquisition Price

JPR Yokohama Nihon Odori Bldg.

Acquisition Price

3,755.01 m2

Structure/Floors
Completed

S/SRC B3/19F
March 1997

Property Manager

34,281.86 m

2

B-6

Yokohama City, Kanagawa¥5,880 million

Tokyo Tatemono Co., Ltd.

Kawaguchi Center Bldg.
Kawaguchi City, Saitama¥2,927 million

Site Area

1,100.59 m2

Total Floor Space

9,146.52 m2

Structure/Floors

SRC B1/11F

Completed

October 1989

Property Manager

Tokyo Tatemono Co., Ltd.

B-5

Shinyokohama 2nd Center Bldg.
Yokohama City, Kanagawa

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed
Property Manager¥1,490 million
841.71 m2
7,781.93 m2
S/SRC B2/12F
August 1991

Nomura Real Estate Partners Co., Ltd.

Acquisition Price
Site Area
Total Floor Space

¥8,100 million
4,524.61 m2

Structure/Floors
Completed

S/SRC B2/15F
February 1994

28,420.85 m

Property Manager
2

Nomura Real Estate Partners Co., Ltd.

21

Portfolio Properties
Greater Tokyo
B-7

OfficeRetailJPR Ueno East Bldg.

B-9

Taito Ward, Tokyo

Acquisition Price

Rise Arena Bldg.
Toshima Ward, Tokyo¥3,250 million

Site Area

1,242.97 m2

Total Floor Space

8,490.44 m2

Structure/Floors

S/SRC B1/8F

Completed

October 1992

Property Manager

Jones Lang LaSalle K.K.

B-8

Tachikawa Business Center Bldg.
Tachikawa City, Tokyo

Acquisition Price
Site Area¥3,188 million
2,047.22 m2

Total Floor Space
Structure/Floors
Completed

14,706.36 m2
S/SRC B1/12F
December 1994

Acquisition Price
Site Area

Office Tower
B-10 Yume-ooka
Yokohama City, Kanagawa

9,377.28 m2(entire redevelopment project)
Total Floor Space

91,280.94 m(including residential tower)

Site Area¥6,510 million
12,011.00 m

Structure/Floors
Completed2

Total Floor Space22

185,974.87 m2

Property Manager

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

Completed

January 2007
Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

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

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Acquisition Price

Structure/Floors

2

Property Manager

Tokyo Tatemono Co., Ltd.

¥5,831 million

S/SRC/RC B3/27F
March 1997

Tokyo Tatemono Co., Ltd.

Site Area¥31,300 million

27,335.29 m2 (entire site area)

Total Floor Space

Structure/Floors

SRC/RC/S B2/45F (Note)

CompletedFebruary 2006

257,842.41 m

Property Manager
2(includes commercial tower and residential tower)

Tokyo Tatemono Co., Ltd.

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

Japan Prime Realty Investment Corporation

Greater Tokyo

OfficeRetailTatemono Yokohama Bldg.
B-12 Tokyo
Yokohama City, Kanagawa

Acquisition Price
Site Area

1,110.28 m2

Total Floor SpaceB-1¥7,000 million

8,772.51 m

Structure/Floors
Completed

Prime East
B-13 Omiya
Saitama City, Saitama

SRC B1/9F
May 1981

Property Manager
2

Tokyo Tatemono Co., Ltd.

Tanashi ASTA

Acquisition Price
Site Area

2,268.09 m2

Total Floor Space

Structure/Floors
Completed

S 9F
February 2009

Property Manager

9,203.98 m

Tokyo Tatemono Co., Ltd.

2

B-3

Nishitokyo City, Tokyo

¥6,090 million

Cupo-la Main Bldg.
Kawaguchi City, Saitama
Acquisition Price¥2,100 million

Site Area

15,008.28 m2(entire redevelopment project)
Total Floor Space

48,321.96 m2

Structure/Floors

S/RC/SRC B2/10F

Completed

January 2006

Property Manager

Tokyo Tatemono Co., Ltd.

B-5

Musashiurawa Shopping Square
Saitama City, Saitama
Acquisition Price
Site Area
Total Floor Space
Structure/Floors

Acquisition Price
Site Area
Total Floor Space

¥10,200 million
12,326.30 m2
80,675.27 m2

Structure/Floors
Completed
Property Manager

SRC B2/17F
February 1995

Tokyo Tatemono Co., Ltd.

Completed¥4,335 million
8,317.99 m2
28,930.36 m2
S B1/4F
October 2005

Property Manager

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

23

Portfolio Properties
Greater Tokyo
B-4

OfficeJPR Musashikosugi Bldg.

Site Area¥7,260 million
4,761.62 m2

Total Floor Space

18,394.32 m

Structure/Floors
Completed

SRC/RC/S B1/6F
March 1983

Property Manager

Tokyo Tatemono Co., Ltd.

2

Niigata Ekinan Center Bldg.

Site Area

RetailKawasaki Dice Bldg.
Kawasaki City, Kanagawa

Acquisition Price
Site Area¥15,080 million
4,475.45 m2

Total Floor Space

Structure/Floors

S/SRC/RC B2/11F

Completed

August 2003

Property Manager

36,902.01 m

2

C-4

Niigata City, Niigata

Acquisition Price

OfficeB-6

Kawasaki City, Kanagawa

Acquisition Price

C-1/ Other Cities

RetailTokyo Tatemono Co., Ltd.

Tokyo Tatemono Honmachi Bldg.
Osaka City, Osaka¥2,140 million
2,706.99 m2

Total Floor Space
Structure/Floors
Completed

19,950.42 m2
S/SRC B1/10F
March 1996

Property Manager

Jones Lang LaSalle K.K.

C-7

JPR Hakata Bldg.
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥2,900 million
1,214.63 m2

Total Floor Space
Structure/Floors

9,828.73 m2
S/SRC B1/12F

Acquisition Price

Completed

June 1985
expansion in November 2003

Property Manager

Tokyo Tatemono Co., Ltd.

24

Site Area
Total Floor Space

¥4,150 million
1,432.64 m2

Structure/Floors
Completed

14,619.52 m

Property Manager
2

SRC B3/9F
February 1970

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities
C-9

OfficeRetailJPR Naha Bldg.

Japan Sendai Bldg.
C-12 Sompo
Sendai City, Miyagi

Naha City, Okinawa

Acquisition Price
Site Area

Acquisition Price¥1,560 million

Site Area

959.87 m

Total Floor Space
Structure/Floors
Completed

Total Floor Space

5,780.71 m2

Structure/Floors

SRC/S 12F

Completed

October 1991

Property Manager

Acquisition Price
Site Area

Completed

December 1997

121 Bldg.
C-14 Tenjin
Fukuoka City, Fukuoka
Acquisition Price¥1,670 million

Site Area

1,128.45 m

Structure/Floors

SRC B1/12F

Tokyo Tatemono Co., Ltd.

Total Floor Space

6,715.07 m2

Structure/Floors

S 9F

Completed

July 1996

Property Manager

8,690.95 m2
S/SRC 13F
July 2000

Property Manager

Tokyo Tatemono Co., Ltd.

Dojima Bldg.
C-17 JPR
Osaka City, Osaka¥2,810 million
1,164.39 m2

2

Total Floor Space

10,783.52 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama¥3,150 million
1,895.67 m2

2

Tokyo Tatemono Co., Ltd.

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥2,140 million
668.11 m2

Total Floor Space
Structure/Floors
Completed

5,696.01 m2
SRC B2/9F
October 1993

Property Manager

Tokyo Tatemono Co., Ltd.

Hakata-Chuo Bldg.
C-18 JPR
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥1,920 million
680.63 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

3,874.81 m2
SRC 8F
February 1993

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space

¥10,996 million
4,348.43 m2

Structure/Floors
Completed

SRC 14F
January 2009

22,286.35 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

25

Portfolio Properties
Other Cities

OfficeRetailNagoya Fushimi Bldg.
C-19 JPR
Nagoya City, Aichi
Acquisition Price
Site Area

C-1

JPR Umeda Loft Bldg.
Osaka City, Osaka¥4,137 million
1,610.38 m2

Total Floor Space
Structure/Floors
Completed

10,201.44 m2
SRC B1/9F
March 1991

Property Manager

Tokyo Tatemono Co., Ltd.

C-3

Benetton Shinsaibashi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area¥13,000 million
3,518.68 m2

Total Floor Space

Structure/Floors
Completed

Acquisition Price¥5,430 million

Site Area

17,897.56 m

Tokyo Tatemono Co., Ltd.

Total Floor Space

Osaka City, OsakaS B2/10F

5,303.98 m2

February 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe
Kobe City, Hyogo

Acquisition Price
Site Area¥7,220 million
3,994.47 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

33,877.71 m2
SRC/S B2/11F
June 1994

Tokyo Tatemono Co., Ltd.

26

JPR Chayamachi Bldg.

Completed609.31 m2

C-4

Structure/Floors

April 1990

Property Manager
2

C-5

SRC B1/8F

Acquisition Price
Site Area
Total Floor Space

¥6,000 million
592.45 m2

Structure/Floors
Completed

3,219.36 m

Property Manager
2

S/SRC 9F
June 1994

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

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

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

Properties withexceptionally highenvironmental &social awareness

Olinas Tower

Yakuin Business
GardenProperties withhighenvironmental &social awareness

JPR Crest
Takebashi Bldg.

BYGS Shinjuku
Bldg.

Properties withexcellentenvironmental &social awareness

JPR Ueno East
Bldg.

DBJ Green Building Certification

JPR Sendagaya
Bldg.

JPR Naha
Bldg.

Shinagawa
Canal Building

Properties with
sufficientenvironmental &social awareness

Rise Arena
Bldg.

Omiya Prime
East

Yume-ooka
Office Tower

JPR Nihonbashihoridome Bldg.

Kanematsu
Bldg.

Oval Court
Ohsaki MarkWest

DBJ awards five levels of certification to office buildings in accordance withthe degree of environmental and social awareness they demonstrate.

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

GRESB, which stands for Global Real
Estate Sustainability Benchmark, is abenchmark system for analyzing andevaluating sustainability in terms ofenvironmental friendliness and social
nature. It is based on surveys conductedby a private sector group establishedprimarily by major pension funds in
Europe.

Taking Advantage of Environmental Friendliness Know-How of Sponsors❚❚ JPR and TRIM have consigned operations related to environmental laws and regulations to Tokyo Tatemono Co.,
Ltd., one of the sponsors, and established a system early on to receive know-how and advice from Tokyo Tatemono.
❚❚ TRIM has reinforced its initiatives on environmental friendliness by allocating dedicated staff to the section in
charge of construction planning for the portfolio properties, bolstered by the technological know-how of Taisei
Corporation, one of the sponsors.
27

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

Corporate History
Date

Description

September 6, 2001
September 14, 2001
November 16, 2001
January 22, 2002
June 14, 2002

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the investment corporation under Article69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)
Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act
Started asset management (acquisition of real estate beneficiary interests in trust for 13 underlying trust assets comprising 11
office properties and 2 retail properties) (¥40,730 million in total)
Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act
Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange and started trading

Structure of JPR
40%

20%

20%

10%

10%

Tokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Administrative Agent forEnvironment-Related Laws andRegulations

Equity Investment
Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

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

Japan Prime Realty
Investment Corporation
Loans / Issue
of Investment
Corporation
Bonds
Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

28

Tokyo Tatemono Co., Ltd.

Investment Management Corporation

Asset
Management
Property

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

Cash
Distribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Japan Prime Realty Investment Corporation

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

NameBusiness Description
Capitalization

Shareholder
Composition (Note 1)

Corporate History

April 28, 2000
October 13, 2000

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

March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

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

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

Compliance Committee(Compliance Subcommittee)
Compliance OfficeFinancial DivisionCorporate Planning /Administration Division

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

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions, as wellas the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees are comprised of the President and CEO,
Investment Management Division General Manager, Financial Division General Manager, and Corporate Planning /Administration Division General Manager. The Compliance Office General Manager also participates in thesecommittees to enhance confirmation in terms of legal compliance. Matters concerning the targets and policies ofinvestment management are decided by the Board of Directors, and matters concerning planning and implementationof asset management are decided by the Investment Committee.
Matters concerning acquisition, disposition or management of individual properties are decided by the Investment
Subcommittee or the Fund Management Subcommittee, respectively. Moreover, the Board of Directors has final
decision-making authority for acquisitions and dispositions of individual assets having over a certain amount of value.
29

Asset Management Report

1. Overview of Asset Management

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance(1) Changes in Operating Results and Other Management Data
Fiscal Period

Unit

Operating Revenue
Rent revenue – real estate
Operating Expenses
Expenses related to rent business
Operating Income
Ordinary Income
Net Income
Total Assets(Period-on-period variation)
Interest-bearing Debts
Total Unitholders Equity(Period-on-period variation)
Unitholders' Capital
Total Cash Distributions
Dividend payout ratio
Number of Units Outstanding
Total Unitholders' Equity per unit
Cash Distribution per Unit
Distribution amountExceeding profit distribution amount
Ordinary Income on Total Assets (Note 1)
Annualized (Note 10)
Net Income on Total Unitholders'Equity (Note 2)
Annualized (Note 10)
Total unitholders' equity at
beginning of period
Unitholders' Equity Ratio at End of
Period (Note 3)(Period-on-period variation)
Interest-bearing Debts to Total Assets at
End of Period (Note 4)
DSCR (Note 5)
Net income before interest andamortization (Note 6)
Interest expenses
NOI from Leasing (Note 7)
Annualized NOI yield (Notes 9 and
10)NCF from Leasing (Note 8)
Annualized NCF yield (Notes 9 and
10)Investment Properties Owned (Note 11)
Number of Tenants
Total Leasable Floor Space
Occupancy Rate

Million yen

25th Fiscal
Period(Jan. 1, 2014 Jun. 30, 2014)
13,734

Million yen

7,308

Million yen
Million yen
Million yen
Million yen
Million yen

13,734

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

26th Fiscal
Period(Jul. 1, 2014 Dec. 31, 2014)
13,902
7,425

13,902
6,733
6,477
5,239
5,238

27th Fiscal
Period(Jan. 1, 2015 Jun. 30, 2015)
14,25128th Fiscal
Period(Jul. 1, 2015 Dec. 31, 2015)
14,10529th Fiscal
Period(Jan. 1, 2016 Jun. 30, 2016)14,246

14,251

14,105

14,246

7,554

7,273

7,372

6,845

6,553

6,658

6,697

6,831

6,874

5,566

5,746

5,897

5,603

5,749

5,896

Million yen

414,104

414,091

418,778

418,739

418,738

Million yen

191,190

191,024

176,458

176,292

176,126(+0.1)(+0.1)(+9.5)(+0.1)%

Million yen%(+0.0)

197,213(-0.0)

197,378(+1.1)

216,092(-0.0)

216,238

Million yen

192,044

192,044

210,395

210,395

%

100.0

100.0

100.0

100.0

Million yen

5,073

5,239

5,603

5,751

Units

825,000

825,000

873,000

873,000

Yen

6,150

6,351

6,419

6,588

Yen
Yen
Yen
%
%

239,046

6,150
－
1.2
2.5

239,246

6,351
－
1.3
2.5

247,529

6,419
－
1.3
2.7

247,696

6,588
－
1.4
2.7

(-0.0)

216,384(+0.1)

210,395
5,897
100.0

873,000
247,862

6,756
6,756
－
1.4
2.8

%

2.6

2.7

2.7

2.7

2.7

%

5.2

5.3

5.5

5.3

5.5

197,095

197,213

197,378

216,092

216,238

47.6

47.7

51.6

51.6

51.7

(+0.0)(+0.0)(+3.9)(+0.0)(+0.0)

%

46.2

46.1

42.1

42.1

42.1

Times

6.5

7.2

7.9

8.7

9.1

Million yen

8,167

8,223

8,531

8,619

8,738

Million yen

1,259

1,142

1,073

994

955

9,260

9,427

9,473

Million yen%

Million yen

8,968

9,010

%

4.5

4.4

4.6

4.6

4.6

Million yen

8,287

8,303

8,599

8,581

8,701

%

4.1

4.1

4.2

4.1

4.3

62

m2
%

628

467,175.54

97.8

62

632

468,232.24

97.0

62

62

62

647

650

661

475,007.79

476,352.67

476,345.81

96.7

97.4

98.1

(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debts / total assets at end of period x 100(Note 5) Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Income before income taxes - gain on sale of real estate + loss on sale of real estate + loss on sale of investment securities + extraordinary loss + interest expenses(including interest expenses on investment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing / property acquisition price (25th fiscal period: ¥404.72 billion, 26th fiscal period: ¥405.52 billion, 27th fiscal period: ¥409.52 billion,
28th fiscal period: ¥410.30 billion and 29th fiscal period: ¥410.30 billion)

3030

Japan Prime Realty Investment Corporation

Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 25th fiscal period: 181 days, 26th fiscal period: 184 days,
27th fiscal period: 181 days, 28th fiscal period: 184 days and 29th fiscal period: 182 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shibadaimon Center Bldg., Shinjuku Sanchome East Bldg., Shinyokohama
2nd Center Bldg., Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded off to the first decimal place).

(2) 29th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. Subsequently, JPR conductedpublic offerings and other equity financing measures, with the number of investment units issued and outstanding totaling 873,000
units at present. JPR has assigned the asset management of its portfolio to Tokyo Realty Investment Management, Inc. (hereafter,
the Asset Manager), through which JPR aims to maximize unitholder value by efficiently managing the portfolio primarily
comprising office properties and retail properties.
2) Management Environment
In the 29th fiscal period, the Japanese economy saw a shift toward the stronger yen and lower stock prices at the beginning of 2016
and thereafter due to concerns about slowdown of overseas economies and other factors. Although the employment environment
continued to be positive, consumer spending remained stagnant. Worries about the impact of the stronger yen on corporate earnings,
which had been robust, also arose under such conditions. Moreover, a keen awareness was spread during the six months about therisk factors outside Japan, with the issue of the U.K. leaving the E.U. as a most recent example.
The Office Property Leasing Market
The supply and demand balance in the office property leasing market of the 23 wards of Tokyo further improved due to new demand
for such positive development as setting up new offices, expanding the office spaces and moving to better locations continued to
be strong, which worked to absorb new supply. The upward trend of the rent levels for new contracts also continued, although at amoderate pace.
The Retail Property Leasing Market
The need of tenants to open stores remained strong for urban retail properties in which JPR targets for investment. Despite some
obscurity noticed in the outlook of consumption by inbound foreign tourists, the market has been in good shape for urban retailproperties in good locations, such as Ginza, Omotesando and Shinsaibashi.
The For-Sale Real Estate Market
Although investors remain highly willing to purchase properties, transaction volume in the market has shown a decreasing trend,
and property transaction prices are steadily being formed at a high level. Meanwhile, investments have continuously been made inproperties located in regional cities as well as in projects related to inbound demand, such as hotels and urban retail properties.
With low-yield transactions continuing to prevail, the acquisition environment remains harsh for players focusing on yields.
Accordingly, REITs have somewhat decelerated the pace at which they conduct new listings and expansion of assets size withfunds through public offerings.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality and stabilizing earnings of the portfolio while paying attention tobalancing diversification of the portfolio, both in terms of location and asset type.
During the 29th fiscal period, JPR investigated possible investments primarily in office properties in central Tokyo and retailproperties in Greater Tokyo, but no acquisition was closed and completed. As of the end of June 2016, the balance of JPR’s assets
under management totaled 62 properties, or 410.3 billion yen on an acquisition price basis, with the total leasable floor spacestanding at 476,345m2 and the number of tenants reaching 661.
Operational Management of Portfolio
In the office property leasing market in the 29th fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving
occupancy rates. As a result, the occupancy rate increased 0.7 points period-on-period to 98.1% at the end of the 29th fiscal period.

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Asset Management Report

In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with the aim to create spaces where the workers feel
comfortable. As an endeavor to implement energy-saving measures, JPR conducted renovations of air-conditioning systems andreplaced lighting equipment in common areas with LED lamps, which are expected to be effective for achieving this objective, at
its multiple properties.
Meanwhile, JPR is continuously working to obtain environmental certifications (the DBJ Green Building Certification*1 and therecognition by GRESB*2). As of the end of the 29th fiscal period, JPR has obtained the DBJ Green Building Certification for 14 of
the buildings it owns. In the GRESB survey conducted in 2015, JPR was designated as “Green Star,” marking the second
consecutive year of recognition with the highest ranking in the survey. GRESB also selected JPR as Sector Leader (the first rank)
in the Diversified (Retail/Office) sector in Asia.
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet the various
social requirements surrounding real estate from stakeholders (“Green Buildings”).
*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 50 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on the diversification of repayment dates through lengthening thematurity of interest-bearing debts, in an effort to further reinforce its strong and solid financial base against the backdrop of thefavorable fund procurement environment and low interest rates. In the 29th fiscal period, JPR borrowed 14.0 billion yen to fundthe repayment of 14.1 billion yen in loans that matured during the fiscal period. The average maturity and average debt cost (Note1) of the new borrowing stood at 9.3 years and 0.66%, respectively, in contrast to 4.7 years and 1.27% for the relevant loans before
refinancing, achieving longer maturities and lower debt costs.
As of the end of the 29th fiscal period, the balance of interest-bearing debts totaled 176.1 billion yen, with total outstanding
borrowings of 134.6 billion yen and investment corporation bonds of 41.5 billion yen. The ratio of interest-bearing debts to total
assets (Note 2) was 42.1%, long-term and fixed interest-bearing debt ratio (Note 3) was 100.0%, average debt cost was 1.16% andaverage maturity (Note 4) was 4.2 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 28 billion yen with seven financial institutions.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of June 30, 2016
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 2) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 3) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 29th fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

3232

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 29th fiscal period.
Date

Event

Number of Units
Outstanding

Unitholders' Capital(millions of yen)

Remarks

Variation
240

Balance240

Variation
120

Balance
120(Note 1)

September 14, 2001

Established by private placement

November 16, 2001

Additional private placement

62,00062,24031,00031,120(Note 2)January 22, 2002

Split of investment units

93,360155,600

31,120(Note 3)June 14, 2002

Initial public offering

134,000

289,600－
25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

39,120154,552(Note 9)March 7, 2007

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

July 30, 2012

Additional public offering

101,420

816,420

19,089190,429(Note 13)

August 29, 2012

Third-party allotment

8,580

825,000

1,614

192,044(Note 14)June 16, 2015

Additional public offering

45,700870,700

17,472

209,516(Note 15)

June 24, 2015

Third-party allotment

2,300

873,000

879

210,395(Note 16)

(Note 1)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment
Management, Inc. (40 units) at 500,000 yen per unit.

(Note 2)

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

(Note 3)

A single investment unit was split into 2.5 units.

(Note 4)

New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to repay short-term debts,
finance the acquisition of new specific assets, etc.

(Note 5)New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to repay short-term debts,
acquire new specific assets, etc.

(Note 6)

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

(Note 7)

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

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

(Note 9)New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to repay debts, acquire new
specific assets, etc.

(Note 10)

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

(Note 11)

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

(Note 12)

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

(Note 13)

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

(Note 14)

New investment units were issued through a third-party allotment at 188,222 yen per unit to partly fund acquisition of new specific assets and repay debts.

(Note 15)

New investment units were issued through a public offering at 394,875 yen per unit (underwriting price of 382,320 yen per unit) to repay debts, etc.

(Note 16)

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

3333

Asset Management Report(4) Cash Distributions
With regard to the cash distributions, JPR decided to distribute part of the retained earnings brought forward that had been internallyreserved through the 28th fiscal period, with the aim of having the profit distributions deducted as expenses based on application of thespecial provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation) and inorder to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result, the cash distribution per unit
came to 6,756 yen for the 29th fiscal period.

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

25th Fiscal
Period26th Fiscal
Period27h Fiscal
Period28th Fiscal
Period29h Fiscal
Period(Jan. 1, 2014 Jun. 30, 2014)(Jul. 1, 2014 Dec. 31, 2014)(Jan. 1, 2015 Jun. 30, 2015)(Jul. 1, 2015 Dec. 31, 2015)(Jan. 1, 2016 Jun. 30, 2016)

5,094,946

5,259,866

5,623,366

5,769,258

5,914,654

21,196

20,291

19,57917,934

16,666

Total Cash Distributions

5,073,750

5,239,575

5,603,787

5,751,324

5,897,988(Cash Distribution per Unit)(6,150 yen)

(6,351 yen)

(6,419 yen)

(6,588 yen)

(6,756 yen)

Total Cash Distributions from Net Income

5,073,750

5,239,575

5,603,787

5,751,324

5,897,988(Cash distribution from net income per unit)(6,150 yen)

(6,351 yen)

(6,419 yen)

(6,588 yen)

(6,756 yen)

－

－

－

－

－

(- yen)(- yen)(- yen)(- yen)(- yen)BreakdownInternal Reserves

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(5) Future Management Policies and Vital Issues
Looking ahead, some uncertainty is being felt about the prospects for the Japanese economy, due to such factors as a decrease incorporate earnings under the influence of the stronger yen and a prolonged stagnation of consumer spending. Moreover, caution should
be taken with respect to the risks that may push the Japanese economy downward, such as downside swings of overseas economies.
In the office property leasing market, new supply in the 23 wards of Tokyo is projected to remain subdued through 2017. Considering
this, and if the economy remains strong, the market situation in general is likely to steadily show a moderate recovery amid continued
improvement in the supply and demand condition, while polarization by property will keep progressing. In this regard, JPR believes itwill be able to fully enjoy the positive impact of the market recovery as it has focused on improving tenant satisfaction through proactive
implementation of value enhancement works and provision of elaborate management services. Going forward, when conducting realestate transactions in the market where polarization of earnings by property is anticipated to further advance, it will become even more
important to discern the growth potential in earnings of respective properties. Considering the situation in which cap rates are decreasing
in a low interest rate environment, it is required to firmly keep the attitude of vigorously selective investment for implementing realestate investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
Going forward, JPR will continue to make investments focused on the office properties in Tokyo, with an aim to improve the qualityof its portfolio and enhance its growth potential over the long term. Given the briskness in the office property leasing market, thetransaction market sees a decrease in purchase cap rate and expected cap rate levels. Moreover, with the transaction volume trending
to decrease, there are deals closed at prices that have factored in lower cap rates and rent increases. Accordingly, JPR will fully
investigate the growth potential of such properties when acquiring them. As for retail properties as well as office properties inregional cities, JPR will work to invest in strictly selective blue-chip properties that can keep stable revenues at a certain level inorder to complement the stability of earnings from the entire portfolio. JPR will strive to acquire new properties under reasonable
terms by negotiating prices based on detailed market studies and property due diligence in considering properties.
Furthermore, JPR will also investigate asset replacement with an aim to improve the quality of its portfolio and enhance the growthpotential over the long term, while taking into account the timing of such arrangement.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction

3434

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

(6) Information Disclosure
Positioning the proactive voluntary disclosure of information as one of its key management policies, JPR voluntarily discloses
information believed to be useful to investment decisions, along with the information disclosure required by the Tokyo Stock Exchange
and set forth by laws and regulations, etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide expanded information including monthly occupancy rates of all properties in the portfolio andhistorical data, as well as offer information for retail investors and deliver video presentation on financial results sessions for securities
analysts. Going forward, we are committed to further enriching the disclosure contents and providing information in a timely manner.

(7) Significant Subsequent Events
Property Sale
As of August 30, 2016, JPR decided on the sale of the following property pursuant to the targets and policy of asset management as set
forth in its Articles of Incorporation. The sale price excludes the settlement amount equivalent to property taxes and urban planningtaxes, consumption taxes and others. The profile of the buyer is not disclosed due to its intention of nondisclosure.
<JPR Daikanyama>
Asset type:
Sale price:
Contract date:
Planned delivery date:
Impact on earnings:

Real estate
1,880 million yen
August 30, 2016
September 29, 2016
JPR plans to record 299 million yen of loss on sale of real estate to operating expenses for the 30th
fiscal period (July 1, 2016 – December 31, 2016).

3535

Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital
25th Fiscal
Period as of June30, 2014
5,000,000

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

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

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

29th Fiscal
Period as of June30, 2016
5,000,000

Total number of units issued andoutstanding

825,000

825,000

873,000

873,000

873,000

Unitholders' capital (millions ofyen)

192,044

192,044

210,395

210,395

210,395

Total number of unitholders

12,425

11,836

15,68913,264

11,786

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 29th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

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

192,707

22.07

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

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

66,029

7.56

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

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

59,048

6.76

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

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

32,170

3.68

Tokyo Tatemono Co., Ltd.

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

29,3003.35

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.86

Meiji Yasuda Life Insurance Company

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

24,0002.74

State Street Bank West Client Treaty 505234 (Standing
Proxy: Settlement & Clearing Services Division, Mizuho
Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

22,308

2.55

State Street Bank and Trust Company 505233 (Standing
Proxy: Settlement & Clearing Services Division, Mizuho
Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA 02171
U. S. A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

15,333

1.75

State Street Bank West Pension Fund Clients Exempt
505223 (Standing Proxy: Settlement & Clearing Services
Division, Mizuho Bank, Ltd.)

P.O. Box 351 Boston, Massachusetts 02101,
U.S.A(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

14,1071.61

480,002

54.98

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

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 29th fiscal period are as follows.
Position
Executive Officer
Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

3636

Name

Other Current Assignments

Total Directors' Fee
during the 29th Fiscal
Period (thousands of yen)
2,400

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

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

4,200

Ernst & Young
ShinNihon LLC－

13,000

Numberof Owned
Units
－
－
－
－

Japan Prime Realty Investment Corporation(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements.

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.
C. Matters Regarding the Party That Was Subject to Business Suspension Order in the Past Two YearsOn December 22, 2015, the Financial Services Agency of Japan issued a three month (January 1, 2016 to March 31, 2016) businesssuspension order to Ernst & Young ShinNihon LLC, the independent auditor of JPR, under which it was prevented from taking on
any new business contracts. JPR comprehensively investigated the quality control of audits by Ernst & Young ShinNihon,
independence of its audit team, progress in implementing the business improvement plan and other factors, and confirmed that
audits of JPR by the firm are conducted appropriately. Accordingly, its audit agreement with Ernst & Young ShinNihon remains
effective.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 29th fiscal period are as follows.
Outsourcing Category
Asset management company

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

3737

Asset Management Report

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset TypeReal estate

Real estate in trustArea

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

29th Fiscal Period(as of June 30, 2016)

Central Tokyo

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

Percentage of total
assets (%)
18.9

Greater Tokyo

58,113,588

13.9

Other Cities

21,222,722

5.1

Central Tokyo

138,627,125

33.1

Greater Tokyo

51,840,430

12.4

Other Cities

43,495,908

10.4

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

6.3
(－)
100.0
(93.7)

Deposits and otherassetsTotal assets－－

Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

78,940,432
57,763,276
21,062,878
138,565,460
51,477,782
43,429,436
27,499,009

18.9
13.8
5.0
33.1
12.3
10.4
6.6

(－)

(－)
100.0
(93.4)

418,738,276(391,239,266)(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheet as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 29th fiscal period.

Property NameBook Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Asset Class

Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

11,034.78

100.0

11.8

OfficeOlinas Tower

28,107,884

23,987.40

23,642.97

98.6

7.0

OfficeShinjuku Center Bldg.

22,214,763

8,863.98

8,353.10

94.2

3.4

OfficeBYGS Shinjuku Bldg.

15,474,438

15,216.93

15,134.94

99.5

3.8

OfficeJPR Sendagaya Bldg.

14,996,835

6,177.74

6,177.74

100.0

1.9

OfficeKanematsu Bldg.

14,746,757

8,011.75

8,011.75

100.0

2.6

OfficeKawasaki Dice Bldg.

13,759,028

12,116.35

12,116.35

100.0

2.9

RetailShinjuku Square Tower

13,568,173

19,284.71

19,284.71

100.0

2.7

OfficeJPR Umeda Loft Bldg.

12,525,201

18,586.97

18,586.97

100.0

2.7

RetailJPR Shibuya Tower
Records Bldg.

11,531,952

8,076.85

8,076.85

100.0

2.5

Retail185,313,295

131,357.46

130,420.16

99.3

41.2

Total

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

3838

Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 29th fiscal period (June 30, 2016).

Area Type

Property Name

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

Central Tokyo

OfficeShinjuku Square Tower
BYGS Shinjuku Bldg.

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.

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

13-23 Shibaura 4-chome, Minato-ku, Tokyo

8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
8-7 Yaesu 2-chome, Chuo-ku, Tokyo

7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome, Shinagawaku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo
16-14 Shinkawa 1-chome, Chuo-ku, Tokyo
25-1 Nishi-Shinjuku 1-chome, Shinjuku-ku,
Tokyo
12-3 Minami-Azabu 2-chome, Minato-ku,
Tokyo
12-33 Konan 2-chome, Minato-ku, Tokyo
2-9, etc., Rokubancho, Chiyoda-ku, Tokyo

Tokyo Tatemono Kyobashi Bldg.

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

Ginza Sanwa Bldg.
Otemachi Tower (Land with
Leasehold Interest)

Retail17-5 Kyobashi 2-chome, Chuo-ku, Tokyo

17-4 Nihonbashi Ningyocho 1-chome, Chuoku, Tokyo

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

JPR Sendagaya Bldg.

6-1 Ginza 4-chome, Chuo-ku, Tokyo
6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Tokyo

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

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

11,400,000

3,012,496

2,470,000

2,994,822

3,020,000

5,239,200

5,000,000

2,906,016

4,510,000

13,568,173

13,700,000

15,474,438

15,500,000

1,820,000

2,847,976

3,320,000

8,721,396

8,260,000

5,336,691

5,900,000

2-1 Kinshi 3-chome, Sumida-ku, Tokyo

3-5 Matsugaya 1-chome, Taito-ku, Tokyo
38-5 Akebonocho 2-chome, Tachikawa,Tokyo
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yokohama, Kanagawa
1-3 Taihei 4-chome, Sumida-ku, Tokyo

11,106,404

Real estate
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest

JPR Ueno East Bldg.

3,150,000

2,640,000

Real estate

1-8 Honcho 4-chome, Kawaguchi, Saitama

3,299,801

3,873,236

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

Kawaguchi Center Bldg.

3,100,000

1,753,988

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

Shinyokohama 2nd Center Bldg.

2,481,135

Real estate

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

JPR Yokohama Nihon Odori Bldg.

2,550,000

Real estate32-13 Jingumae 4-chome, Shibuya-ku, Tokyo

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

1,996,505

861,000

JPR Jingumae 432

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

2,540,000

13,900,000

22-14 Jinnan 1-chome, Shibuya-ku, TokyoJPR Chiba Bldg.

2,476,728

22,214,763

20-5 Daikanyamacho, Shibuya-ku, Tokyo

Shibadaimon Center Bldg.

10-11 Shibadaimon 1-chome, Minato-ku,
Tokyo12,800,000

Real estate

JPR Daikanyama

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

14,746,757

599,181

JPR Shibuya Tower Records Bldg.

Science Plaza-Yonbancho Plaza

Appraisal ValueBook Valueas of June 30,
as of June 30,
2016
2016
(thousands of yen)(thousands of yen)
(Note)

Real estate

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

Arca East

Office14-1 Kyobashi 2-chome, Chuo-ku, TokyoJPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.

Greater Tokyo

Location

Form ofOwnership

4,860,264

6,390,000

14,996,835

11,300,000

3,677,619

3,610,000

38,388,259

45,100,000

2,698,443

3,040,000

4,230,998

5,320,000

11,531,952

13,900,000

2,180,556

1,600,000

4,306,102

3,820,000

2,651,148

2,780,000

3,333,994

2,980,000

4,366,055

6,320,000

2,294,025

1,800,000

2,525,164

2,470,000

1,432,079

1,750,000

6,968,011

7,800,000

2,989,526

4,510,000

2,905,344

3,280,000

Real estate

5,367,525

7,570,000

Real estate

5,563,328

5,930,000

Real estate

28,107,884

35,300,000

3939

Asset Management Report

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

RetailGreater Tokyo

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

Other Cities

OfficeSompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden

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

Form ofOwnership

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

Real estate

6,877,334

7,950,000

5,989,616

7,440,000

7,430,685

13,300,000

Real estate

1,766,424

2,680,000

Real estate

7,091,252

5,500,000

3,807,769

4,250,000

13,759,028

15,400,000

1,675,695

2,390,000

4,087,739

3,340,000

3,003,686

3,040,000

1,343,170

1,500,000

2,294,932

3,660,000

1,374,137

1,680,000

2,123,980

2,540,000

2,172,125

2,450,000

Beneficiaryinterest
Beneficiaryinterest

1-1 Tanashicho 2-chome, Nishitokyo, Tokyo

1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome, Nakaharaku, Kawasaki, Kanagawa

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

3-1 Bessho 7-come, Saitama, Saitama

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

1-19 Matsuyama 1-chome, Naha, Okinawa

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

1,812,195

1,780,000

Real estate

3,961,238

2,710,000

Real estate

10,767,869

13,900,000

12,525,201

14,300,000

5,065,594

4,070,000

Real estate

6,333,771

6,910,000

Beneficiaryinterest

5,950,977

6,080,000

391,239,266

419,881,000

Beneficiaryinterest
Beneficiaryinterest

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

2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo
2-19 Chayamachi, Kita-ku, Osaka, Osaka

Total

Appraisal ValueBook Valueas of June 30,
as of June 30,
2016
2016
(thousands of yen)(thousands of yen)
(Note)(Note) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

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

Area Type

Property Name

Kanematsu Bldg.

Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.

JPR Crest Takebashi Bldg.
OfficeCentral Tokyo

Shin-Kojimachi Bldg.
MS Shibaura Bldg.

Gotanda First Bldg.
Fukuoka Bldg.

JPR Ichigaya Bldg.

Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.

4040

28 Fiscal Period
29th Fiscal Period(from Jul. 1, 2015 to Dec. 31, 2015)(from Jan. 1, 2016 to Jun. 30, 2016)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)7
69.7
295,5172.1
9100.0
302,752
2.1
0

0.0

2,786

0.0

1

100.0

4

100.0

89,142

0.6

4

16

100.0

104,800

0.7

16

92,715

0.7

6

100.0

(Note 2)

(Note 2)100.0

90,5100.6

100.0

106,418

0.7

6

100.0

90,780

0.6

10

100.0

379,395

2.7

9

86.4

415,334

2.9

3
1

70.7

16,807

0.1

3

91.4

100.0

(Note 2)

(Note 2)

1

100.0

104,999(Note 2)0.7
(Note 2)

10

100.0

135,411

1.0

10

100.0

158,310

1.1

100.0

172,974

1.2

2

100.0

181,394

1.3

327,437

2.3

26

100.0

355,5902.5

550,377

3.9

26

99.5

551,720

3.9

2

26
26

99.9

99.5

Japan Prime Realty Investment Corporation

Area Type

Property Name

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

Shinagawa Canal Bldg.

Central Tokyo

OfficeRokubancho Bldg.

JPR Harajuku Bldg.

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

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

RetailJPR Shibuya Tower Records Bldg.
JPR Daikanyama

JPR Jingumae 432

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

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

Kawaguchi Center Bldg.
JPR Ueno East Bldg.

Tachikawa Business Center Bldg.
Rise Arena Bldg.

Yume-ooka Office Tower
Olinas Tower

Tokyo Tatemono Yokohama Bldg.

Omiya Prime East

RetailTanashi ASTA

Cupo-la Main Bldg.

JPR Musashikosugi Bldg.

Musashiurawa Shopping Square
Kawasaki Dice Bldg.

Niigata Ekinan Center Bldg.

Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.

OfficeOther Cities

JPR Naha Bldg.

Sompo Japan Sendai Bldg.

Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

JPR Dojima Bldg.

JPR Hakata-chuo Bldg.

JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
RetailJPR Umeda Loft Bldg.

Benetton Shinsaibashi Bldg.

Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

28 Fiscal Period
29th Fiscal Period(from Jul. 1, 2015 to Dec. 31, 2015)(from Jan. 1, 2016 to Jun. 30, 2016)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)4

100.0

36,892

0.3

4

100.0

36,784

0.3

31

90.9

474,469

3.4

33

94.2

1

100.0

(Note 2)

(Note 2)

1

100.0

463,549(Note 2)

3.3
(Note 2)

4

66.7

49,576

0.4

4

89.9

1

100.0

(Note 2)

(Note 2)

1

100.0

44,620(Note 2)0.3
(Note 2)9100.0

233,032

1.7

9

100.0

234,494

1.6

9

100.0

193,404

1.4

9

100.0

204,818

1.4

6

100.0

194,169

1.4

6

100.0

191,948

1.3

6

86.8

226,685

1.6

6

100.0

239,667

1.7

8

100.0

121,015

0.9

7

94.8

118,094

0.8

2

100.0

1,581,000

11.2

2

100.0

1,581,000

11.1

24

96.6

113,966

0.8

25

97.5

115,123

0.8

9

100.0

177,601

1.3

9

100.0

1

100.0

(Note 2)

(Note 2)

1

100.0

175,930(Note 2)

1.2
(Note 2)

4

100.0

35,123

0.2

4

100.0

40,494

0.3

6

89.8

82,255

0.6

6

89.8

1

100.0

(Note 2)

(Note 2)

1

100.0

83,403(Note 2)0.6
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

6

100.0

266,542

1.9

5

85.3

233,165

1.6

37

94.2

127,352

0.9

36

92.0

127,242

0.9

12

94.8

127,545

0.9

12

94.8

116,495

0.8

18

91.0

98,700

0.7

21

96.0

98,759

0.7

43

99.3

404,224

2.9

44

100.0

409,317

2.9

8

94.0

171,418

1.2

9

100.0

171,997

1.2

19

92.9

144,293

1.0

19

98.1

148,154

1.0

1

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

35

95.4

317,395

2.3

38

97.5

321,618

2.3

12

100.0

1,050,755

7.4

14

98.6

983,545

6.9

14

100.0

298,383

2.1

14

100.0

294,720

2.1

4

100.0

264,889

1.9

4

100.0

1

100.0

(Note 2)

(Note 2)

1

100.0

264,785(Note 2)

1.9
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

3

100.0

126,996

0.9

3

100.0

126,996

0.9

29

100.0

516,697

3.7

29

100.0

495,707

3.5

8

100.0

127,414

0.9

8

100.0

128,294

0.9

10

93.3

154,014

1.1

8

91.0

150,898

1.1

42

99.8

147,669

1.0

42

98.7

147,694

1.0

21

100.0

90,823

0.6

21

100.0

91,622

0.6

15

100.0

185,856

1.3

15

100.0

187,254

1.3

13

98.3

111,475

0.8

14

100.0

110,735

0.8

16

100.0

98,590

0.7

16

100.0

101,134

0.7

8

100.0

113,961

0.8

7

50.1

163,704

1.1

6

100.0

80,735

0.6

6

100.0

80,378

0.6

3

94.5

134,432

1.0

3

95.0

135,211

0.9

17

96.8

446,004

3.2

18

99.9

1

100.0

(Note 2)

(Note 2)

1

100.0

428,397(Note 2)3.0
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

6
650

100.0
97.4

159,430
14,105,386

1.1
100.0

6
661

100.0
157,495
98.1 14,246,699

1.1
100.0

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property.
If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice
Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance with the lease conditions

4141

Asset Management Reportof the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above.
There were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of
the 29th fiscal period.

4242

Japan Prime Realty Investment Corporation

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

Location

Sompo Japan
Sendai Bldg.

Sendai City,
MiyagiBYGS Shinjuku
Bldg.

Shinjuku Ward,Tokyo

Olinas Tower

Sumida Ward,Tokyo

Shinyokohama
2nd Center Bldg.

Yokohama City,
Kanagawa

Sompo Japan
Sendai Bldg.

Purpose

Total
Value

Payment
duringthe 29th
Fiscal Period

AmountAlready
PaidJul. 2016~Dec. 2016

196

－

－

Jun. 2016~Dec.2016

62

－

－

Jul. 2016~Dec. 2016

61

－

－

Sept. 2016~Dec. 2016

48

－

－

Schedule

2nd phase of replacement of air
conditioning units

Renewal of automatic fire alarm
integrated control panel andreplacement of security office
1st phase of overhaul of through-thewall air conditioning units (7 floors)
Renewal of external air-processing
units and heat sources

Sendai City,
Miyagi

Replacement of security systems

Aug. 2016~Dec. 2016

48

－

－

Kanematsu Bldg.

Chuo Ward, Tokyo

Oct. 2016~Dec. 2016

36

－

－

Tokyo Tatemono
Honmachi Bldg.

4th phase of renewal of through-the-wall
air conditioning units

Osaka City, Osaka

Replacement of tiling of exterior walls

Aug. 2016~Dec. 2016

31

－

－

Shibuya Ward,Tokyo

Renewal of cooling tower CT-2 (for
PMAC)

Sept. 2016~Dec. 2016

30

－

－

JPR Shibuya
Tower Records
Bldg.

(2) Capital Expenditures during the 29th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 29th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting new
tenants. In addition, aside from these constructions, JPR conducted construction of 430 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name

Location

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

MS Shibaura Bldg.

Minato Ward, Tokyo

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Kanematsu Bldg.

Chuo Ward, Tokyo

Ginza Sanwa Bldg.

Chuo Ward, TokyoMS Shibaura Bldg.

Minato Ward, TokyoJPR Dojima Bldg.

Osaka City, Osaka

Other Properties

Purpose1st phase of replacement of air
conditioning units and otherconstruction
Replacement of air conditioning
units on the 8th floor
Replacement of air conditioning
units and installation of officeautomation floors
3rd phase of renewal of through-thewall air conditioning units
1st phase of repair of common areas
Renovation of the entrance hall andreplacement of toilets

Renewal of lighting fixtures in
exclusive areas on 2nd, 3rd, 4th,
8th and 9th floors and in common
areas of the entire building

PeriodConstruction
Expenses(millions of yen)

May 2016~Jun. 2016

110

Jan. 2016~Mar. 201689

Feb. 2016~ Feb. 201679

Apr. 2016~Jun. 201665

Nov. 2015~Jun. 2016

52

Jan. 2016~Apr. 201634

May 2016~Jun. 2016

28

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

310
772

(Note) Expenditures for repair and maintenance included 10 million yen of construction management fees paid to construction management companies as well as the amounts
for repair and maintenance constructions themselves.

4343

Asset Management Report(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.
(Millions of yen)

Operation Period

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

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

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

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

29th Fiscal Period(Jan. 1, 2016 Jun. 30, 2016)

Balance of deposits at
beginning of current period

805

925

877

934

940

Deposits during the period

591

378

473

276

494

Amounts used from
deposits during the period

471

426

416

270

498

Deposits carried forward to
the next period

925

877

934

940

936

4444

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
28th Fiscal Period(Jul. 1, 2015 - Dec. 31, 2015)

Item(a) Asset Management Fees (Note)

29th Fiscal Period(Jan. 1, 2016 - Jun. 30, 2016)
504,632

512,078

Fixed compensation

75,00075,000

Incentive-based compensation 1

251,738

254,635

Incentive-based compensation 2

177,894

182,443(b) Administrative Service and Custodian Fees

82,481

78,833(c) Directors' Fee

6,600

6,600

(d) Trust Fees

31,54831,077(e) Other Expenses
Total

95,53385,525

720,796

714,115(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (28th fiscal period: 1,965 thousand yen)
have been paid and included in the book value of each property.

(2) Status of Loans Payable
Category

LenderDrawdown
Date

Short-Term
Loans
PayableAs of June 30, 2016 JPR has the following loans payable.

Sumitomo Mitsui Trust Bank,
LimitedMar. 26, 2015

Total
Mizuho Bank, Ltd.

1.093%

2,000

2,000

1.027%

3,000

3,000

5,000

5,000

2,000

2,000

Mar. 24, 2015

2,000

2,000

1.011% Mar. 11, 2024
1.056% Mar. 24, 2025

Feb. 4, 2016

－

5,000

0.804%

Feb. 4, 2026

Mar. 11, 2015

Shinsei Bank, Ltd.
Aozora Bank, Ltd.
Aozora Bank, Ltd.

Dec. 5, 2012

Jun. 27, 2014－

1.198%

Aug. 8, 2012

1,000

1,000

1.178%

Aug. 8, 2019

Aug. 8, 2012

1,000

1,000

0.948%

Aug. 8, 2017

Sept. 5, 2012

3,000

3,000

0.919%

Sept. 5, 2017

Dec. 5, 2012

1,000

1,000

1.027%

Dec. 5, 2019Nov. 27, 2013

3,000

3,000

Principal lump
sum repayment (Note 3)
0.970% Nov. 27, 2020 on maturity

Jun. 27, 2014

4,000

4,000

0.889%

Jun. 25, 2021

Mar. 25, 2016

－

5,000

0.510%

Mar. 25, 2024

Mar. 30, 2012

6,400

6,400

1.093%

Mar. 30, 2017

Dec. 5, 2012

1,000

1,000

1.027%

Dec. 5, 2019

Jun. 27, 2013

3,000

3,000

1.265%

Jun. 26, 2020

Jun. 27, 2014

2,500

2,500

1.033%

Jun. 27, 2022

Apr. 5, 2012

5,000

5,000

1.397%

Apr. 5, 2019

2,000

2,000

2,000

2,000

Aug. 8, 2012

Non-SubordinatedDec. 5, 2019

5,000

Jul. 3, 2012

Unsecured/
Unguaranteed/

0.970% Nov. 27, 2020
1.178% Jun. 27, 2023

Mar. 25, 2016

Dec. 5, 2014

RemarksMar. 30, 2017

Mar. 25, 2011

Sept. 24, 2013

UseFeb. 4, 2016

1.414%

Mizuho Bank, Ltd.

Shinsei Bank, Ltd.

－－

Nov. 27, 2013

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

1,000

Repayment
MethodPrincipal lump
0.309% Mar. 25, 2016 sum repayment (Note 3)
on maturity

7,000

Mizuho Bank, Ltd.

Mizuho Bank, Ltd.

－

7,000

Mar. 30, 2012

Mizuho Bank, Ltd.

1,000

Repayment
Date

5,000

Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Long-Term Loans Payable

Feb. 4, 2011

Balance as Average
Balance as ofof Jun. 30, InterestJan. 1, 2016
2016
Rate (%)(millions of(millions of (Note 1)
yen)
yen)
(Note 2)

Unsecured/
Unguaranteed/
Non-Subordinated1.076% Sept. 24, 2020
1.134% Dec. 5, 2024

900

900

0.994%

2,000

2,000

1.178%

Jul. 3, 2017

Aug. 8, 20194545

Asset Management Report

Category

LenderDrawdown
Date

Aozora Bank, Ltd.

Aug. 27, 2012

Repayment
Date

Repayment
Method

1,000

1,000

0.985% Aug. 25, 2017 Principal lump
1.146% Aug. 30, 2018 sum repayment
1.069% Sept. 24, 2020 on maturity

Jun. 26, 2009

2,700

2,600

3.190%

Jun. 27, 2019

Jun. 27, 2013

820

820

1.449%

Jun. 25, 2021

Dec. 5, 2013

2,000

2,000

1.188%

Dec. 3, 2021

Mar. 24, 2015

2,000

2,000

1.056% Mar. 24, 2025

Mar. 30, 2012

4,000

4,000

1.093%

Mar. 30, 2017

Feb. 4, 2013

3,000

3,000

1.076%

Feb. 4, 2020

Mitsubishi UFJ Trust andBanking Corporation

Aug. 29, 2011

5,000

5,000

1.184%

Aug. 29,2017

Mitsubishi UFJ Trust andBanking Corporation

Aug 31, 2015

1,000

1,000

0.873%

Jul. 7, 2011

2,000

2,000

1.170%

1,000

1,000

Aozora Bank, Ltd.

Aug. 30, 2012

Aozora Bank, Ltd.
Development Bank of JapanInc.
Development Bank of JapanInc.
Development Bank of JapanInc.
Development Bank of JapanInc.
Mizuho Trust & Banking Co.,Ltd.
Mizuho Trust & Banking Co.,
Ltd.

Sept. 30, 2013

2,000

2,000

2,000

2,000

Sept. 24, 2013

The Bank of Fukuoka, Ltd.
Meiji Yasuda Life Insurance
Company
Meiji Yasuda Life Insurance
Company
Sompo Japan Nipponkoa
Insurance Inc.
Sompo Japan Nipponkoa
Insurance Inc.
ORIX Bank Corporation

Oct. 9, 2015

2,000

2,000

Jul. 7, 2016
0.911% Sept. 24, 2019
0.816% Oct. 6, 2023

Jun. 21, 2011

3,472

3,406

1.800%

Jun. 21, 2018

Feb. 5, 2015

1,000

1,000

1.042%

Feb. 5, 2025

Apr. 11, 2012

2,000

2,000

0.981%

Oct. 11, 2016

ORIX Bank Corporation
Shinkin Central BankThe Shinkumi Federation Bank
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Taiyo Life Insurance Company
The Chugoku Bank, Ltd.
The Chugoku Bank, Ltd.
The Nishi-Nippon City Bank,Ltd.
The Nishi-Nippon City Bank,Ltd.
The Hachijuni Bank, Ltd.
The Hachijuni Bank, Ltd.
Resona Bank, Limited
The Iyo Bank, Ltd.
Daido Life Insurance Company
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
The Norinchukin Bank
Sumitomo Mitsui Trust Bank,
Limited
Total

Dec. 25, 2015

2,000

2,000

0.759%

Dec. 25, 2023

Feb. 4, 2013

1,000

1,000

0.786%

Feb. 5, 2018

2,000

2,000

0.762%

May 27, 2019

3,000

3,000

0.689%

Dec. 5, 2018

3,000

3,000

0.786%

1,000

1,000

0.949%

Feb. 5, 2018
Jun. 4, 2018

1,000

1,000

1,000

1,000

1,000

1,000

2,000

2,000

3,000

－

May 27, 2026

Nov. 27, 2013
Dec. 5, 2013
Feb. 4, 2013
Jun. 4, 2013

Dec. 27, 2013

Sept. 24, 2015
Sept. 24, 2013
Oct. 9, 2015

May 27, 2011
May 27, 2016

－

3,000

0.646%

1,000

1,000

1,000

1,000

0.424% Sept. 26, 2016
0.489% Oct. 9, 2020

2,000

2,000

1.093%

1,000

1,000

0.816%

1,000

1,000

0.710%

Dec. 27, 2013

1,000

1,000

0.710% Dec. 27, 2018

Dec. 5, 2014

1,000

1,000

0.440%

Dec. 5, 2017

Mar. 25, 2016

－

1,000

0.691%

Mar. 25, 2026

133,792

134,626

Oct. 9, 2015
Oct. 9, 2015

Dec. 27, 2013

Remarks(Note 3)

Unguaranteed/Non-(Note 4)

Principal lump
sum repayment
on maturity(Note 5)

Unsecured/

Subordinated1.011% Dec. 25, 2020
0.969% Sept. 24, 2024
0.758% Sept. 25, 2018 Principal lump
0.816% Oct. 6, 2023 sum repayment
on maturity
1.149% May 27, 2016

Sept. 24, 2014
Mar. 30, 2012

UseAug. 31,2023

The Bank of Fukuoka, Ltd.

The Bank of Fukuoka, Ltd.

Long-Term Loans Payable

Balance as Average
Balance as ofof Jun. 30, InterestJan. 1, 2016
2016
Rate (%)(millions of(millions of (Note 1)
yen)
yen)
(Note 2)Mar. 30, 2017

Oct. 6, 2023
Dec. 27, 2018

(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loan arrangement
paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter on the 27th day of every 6 months. In addition, repayment of
2,100 million yen will be made on maturity date June 27, 2019.
(Note 5) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter on the 27th day of every 6 months. In addition, repayment of 3,208
million yen will be made on maturity date June 21, 2018.

4646

Japan Prime Realty Investment Corporation(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of June 30, 2016 are as follows.
Balance as of
Balance as of
CouponRate
Jan. 1, 2016
Jun. 30, 2016(%)
(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Thirteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

7,000

7,000

0.950

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

5,000

5,000

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds

May 31, 2013

5,000

5,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds

Jul. 22, 2014

2,000

2,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

41,50041,500

Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

(4) Subscription Rights to Shares
Not applicable4747

Asset Management Report

6. Acquisitions and Sales during the 29th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Not applicable(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 29th fiscal period.

(3) Survey on Values of Specified Assets, etc.
Not applicable(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of specified assets or other deals with interested parties and major shareholders were conducted during the 29th
fiscal period.
2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

258,250

Outsourcing Fees
Tenant Brokerage Fees

531,608
41,971

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
221,846
Taisei-Yuraku Real Estate Co., Ltd.
5,863
Tokyo Tatemono Co., Ltd.
408,285
Tokyo Tatemono Co., Ltd.
15,555(Thousands of yen)
Ratio to Total
Amount(B/A))
85.9%
2.3%
76.8%
37.1%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 17,940 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or major
shareholders during the 29th fiscal period.
Tokyo Tatemono Co., Ltd.
Taisei-Yuraku Real Estate Co., Ltd.

499,173 thousand yen
8,379 thousand yen

Tokyo Real Estate Management Co., Ltd.

374,367 thousand yen

Taisei Corporation

29,627 thousand yen

Shinjuku Center Building Management Co., Ltd.

11,281 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

4848

Japan Prime Realty Investment Corporation

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

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

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

4949

Asset Management Report

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

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

－

40

January 22, 2002 (Note)

60

－

100

Accumulated Total

100

－

100

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

(2) Units Held
Number of Units Held at End
of Period

Ratio to Total Units Issued
and Outstanding (%)

20th Fiscal Period(Jul. 1, 2011 – Dec. 31, 2011)

100

20

0.0

21st Fiscal Period(Jan. 1, 2012 – Jun. 30, 2012)

100

20

0.0

22nd Fiscal Period(Jul. 1, 2012 – Dec. 31, 2012)

100

20

0.0

23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

100

20

0.0

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)

100

20

0.0

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

100

20

0.0

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

100

20

0.0

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

100

20

0.0

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

100

20

0.0

29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)

100

20

0.0

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

5050

Total Investment at End of
Period (Note)(millions of yen)Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation Owning Foreign Real
EstateNot applicable
11. Other(1) Notice
Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the
29th fiscal period include the following:
Date of Boardof Directors
Meeting

Approved Item

February 12,
2016Conclusion of memorandum inaccordance with the “My Number”(social security and tax number)systemMay 26, 2016

Conclusion of amendment agreementon the general administration andasset custody entrustment agreement
and other documents

Overview

A memorandum and other documents concerning handling of the social security and tax
number (“My Number”) in terms of the asset management operations, which JPR has
entrusted to Tokyo Realty Investment Management, Inc. and in terms of operations
related to the investment units and administration of special accounts, which JPR has
entrusted to Mizuho Trust & Banking Co., Ltd., in accordance with the enforcement of
the Act on the Use of Numbers to Identify a Specific Individual in the Administrative
Procedure (“My Number” system) on January 1, 2016.
A memorandum and other documents concerning rules, etc. on conducting “My
Number”-related work in terms of operations related to the investment units andadministration of special accounts, which JPR has entrusted to Mizuho Trust & Banking
Co., Ltd.

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

5151

Financial Statements(1) Balance Sheets

AssetsCurrent assets
Cash and deposits

Cash and deposits in trust

Operating accounts receivable
Prepaid expenses
Other

Total current assets

Noncurrent assets
Property, plant and equipment
Buildings

Accumulated depreciation
Buildings, net

Buildings in trust*1

Accumulated depreciation
Buildings in trust, net

Structures

Accumulated depreciation
Structures, net

Accumulated depreciation*1

Tools, furniture and fixtures, net

Tools, furniture and fixtures in trust, net

Total intangible assets

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

Total investments and other assets

Total noncurrent assets

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

5252

56,968,858

57,149,742(12,686,626)(13,477,853)

44,282,231*187,786,352(27,644,362)(28,675,361)

59,612,627

59,110,990

51,72851,715(16,782)(17,671)
34,044

119,876(74,494)
45,381

726,505

742,172(380,688)(399,899)

345,817
1,616,054*1

342,273

1,655,815(1,273,279)
382,535

62,401(36,881)
25,519169,164

178,038(113,246)(118,882)
59,15655,917*1

43,671,889

87,256,990

24,743

Accumulated depreciation

Other

26,943,421(34,503)

Tools, furniture and fixtures in trust

Leasehold right

10,25725,818,070

59,247

Accumulated depreciation

Intangible assets

122,519

10,916374,236

Tools, furniture and fixtures

Total property, plant and equipment

395,640

162,693(1,241,817)

Machinery and equipment in trust, net

Construction in progress

12,137,178

308,075

48,219Machinery and equipment

Land in trust

14,277,826

11,831,284(71,656)

Structures in trust, net

Land13,505,100

119,876

Accumulated depreciation

Machinery and equipment in trust
Accumulated depreciation

End of 29th Fiscal Period(Jun. 30, 2016)

34,946Structures in trust

Machinery and equipment, net(Thousands of yen)

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

108,898,331*1

108,898,331

173,871,178

173,873,374

1,957
387,550,206

386,443,498

4,794,109

4,794,109

－

1,890

1,658

4,796,000

4,795,768

194,720

241,612

158,096

120,730

352,817362,342392,699,024

391,601,608

185,149

163,517

37,29529,728222,445

193,245418,739,540

418,738,276

Japan Prime Realty Investment Corporation

Liabilities
Current liabilities
Operating accounts payable(Thousands of yen)

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

End of 29th Fiscal Period(Jun. 30, 2016)

2,003,354

2,209,614

Short-term loans payable

Current portion of long-term loans payable

Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses

Income taxes payable

Accrued consumption taxes
Advances received

1,000,000－

18,332,000

24,732,000

7,000,000

7,000,000

645,043

588,151

108,133

94,072

605

605

277,127

256,7442,609,250

2,739,606

Total current liabilities

32,181,772

37,414,534

Long-term loans payable

34,500,000

34,500,000

115,460,000

109,894,000

Noncurrent liabilities
Investment corporation bonds
Tenant leasehold and security deposits

Tenant leasehold and security deposits in trust*1

Total noncurrent liabilities
Total liabilities

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

Unappropriated retained earnings(undisposed losses)

Total surplus

Total unitholders' equity
Total net assets

Total liabilities and net assets*3

7,537,730*1

7,686,149

12,821,233

12,859,392

170,318,963

164,939,541

202,500,736

202,354,076

210,395,598

210,395,598

73,94673,94673,94673,946

5,769,258

5,914,654

5,843,205

5,988,601

216,238,803

216,384,200

216,238,803
418,739,540*3

216,384,200
418,738,276

5353

Financial Statements(2) Statements of Income and Retained Earnings

Operating revenue
Rent revenue-real estate

Total operating revenue

Operating expenses
Expenses related to rent business
Asset management fee

Administrative service and asset custody fees
Directors' compensation
Trust fees

Other operating expenses

Total operating expenses

Operating income

Non-operating income
Interest income

Income on settlement of management association accounts
Other

Total non-operating income

Non-operating expenses
Interest expenses
Borrowing expenses

Interest expenses on investment corporation bonds

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other

Total non-operating expenses

Ordinary income

Extraordinary income
Subsidy income

Total extraordinary income

Income before income taxes
Income taxes-current

Total income taxes

Net income

Retained earnings brought forward

Unappropriated retained earnings (undisposed losses)

5454(Thousands of yen)

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

29th Fiscal Period(Jan. 1, 2016 –Jun. 30, 2016)*1*1

14,105,386

14,246,699

14,105,386*1

6,553,179

14,246,699*1

6,658,243

504,632

512,078

82,481

78,833

6,600

6,600

31,54831,077

95,53385,525

7,273,976
6,831,410

7,372,358
6,874,340

2,349

2,497

1,685

53,600

4,033

11,9098,068

68,008754,492

718,019

68,79358,432239,913

237,846

21,871

21,632

7,650

7,567

311

1,526

1,093,032
5,746,446

1,045,023

3,837

－

5,897,325

3,837

－

5,750,284

5,897,325

605
605

605

5,749,679

5,896,720

605

19,57917,934

5,769,258

5,914,654

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

28th Fiscal Period

Unitholders' equity

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

Total changes of items during the period

Balance at end of current period

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

Total changes of items during the period

29th Fiscal Period(Jul. 1, 2015–
Dec. 31, 2015)(Jan. 1, 2016 –Jun. 30, 2016)

210,395,598

210,395,598－－

210,395,598

210,395,598

73,94673,946－－73,94673,946

5,623,366

5,769,258

Dividends from surplus
Net income(5,603,787)
5,749,679(5,751,324)
5,896,720

Balance at end of current period

145,892

145,396

5,769,258

5,914,654

5,697,313

5,843,205

145,892
5,843,205

145,396
5,988,601

216,092,911

216,238,803

145,892
216,238,803

145,396
216,384,200

216,092,911

216,238,803

145,892

145,396
216,384,200

Balance at end of current period

Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period
Changes of items during the period

Total changes of items during the period

Total surplus
Balance at beginning of current period

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

Total unitholders' equity
Balance at the beginning of current period
Changes of items during the period

Total changes of items during the period

Balance at end of current period

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

Total changes of items during the period

Balance at end of current period

216,238,803

5555

Financial Statements(4) Statements of Cash Distributions

I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Retained earnings carried forward

Method for calculating distribution amount5656

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

29th Fiscal Period(January 1, 2016 –June 30, 2016)

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

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 5,897,988,000
yen, which is the largest integral multiple ofthe number of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

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

5,914,654,871 yen
5,897,988,000 yen(6,756 yen)
16,666,871 yen

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

28th Fiscal Period

29th Fiscal Period(Jul. 1, 2015–
Dec. 31, 2015)(Jan. 1, 2016 –Jun. 30, 2016)

Income before income taxes

Depreciation and amortization

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income

Interest expenses

Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses

5,750,284

5,897,325

1,875,564

1,885,354

21,871

21,632

7,650

7,567

(2,349)(2,497)994,406

955,865

24,794(87,565)

Increase (decrease) in operating accounts payable

117,673(283,603)

Increase (decrease) in accounts payable-other(55,736)(136,511)

Increase (decrease) in accrued consumption taxes(20,382)

97,234

Increase (decrease) in advances received

130,356(6,810)

Other, net(14,396)

40,162

Subtotal

8,875,370

8,347,406

Interest income received

2,497

2,349

Interest expenses paid

(985,420)

Net cash provided by (used in) operating activities

7,363,711

Income taxes (paid) refund(969,925)

(510)

(623)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment

7,907,431(265,593)(87,534)

Purchase of property, plant and equipment in trust(837,967)(1,174,178)

Payment of tenant leasehold and security deposits(46,891)(49,257)

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

Repayments of tenant leasehold and security deposits in trust(693,748)

Proceeds from tenant leasehold and security deposits(173,750)
322,168

83,383

Proceeds from tenant leasehold and security deposits in trust(309,784)
400,221716,213

Net cash provided by (used in) investing activities(1,324,972)

Proceeds from long-term loans payable

10,000,000

Net cash provided by (used in) financing activities
Repayment of short-term loans payable(911,597)(1,000,000)－

Repayment of long-term loans payable

14,000,000(13,166,000)(10,166,000)

Dividends paid

(5,751,214)(5,600,993)

Net cash provided by (used in) financing activities(5,917,214)(5,766,993)

Net changes in cash and cash equivalents

1,078,619

271,746

Cash and cash equivalents at beginning of current period
Cash and cash equivalents at end of current period

40,174(35,286)

25,336,385

25,064,638*1

25,336,385*1

26,415,004

5757

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

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

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

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



5858

(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:  Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental expenses.
Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as an acquisition cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted to2,332 thousand yen for the fiscal periods ended December 31, 2015 and were null for the fiscal period ended June30, 2016.
Cash and cash equivalents in the Statements of Cash Flows include the following(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

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


Buildings (net)
Machinery and equipment (net)
Land
Total

End of 29th Fiscal Period(as of June 30, 2016)
113,296

111,427

2,739

2,568

399,183

399,183

515,219

513,179

Secured liabilities are as follows:(Thousands of yen)
End of 28th Fiscal Period(as of December 31, 2015)

Tenant leasehold and security deposits
Total

End of 29th Fiscal Period(as of June 30, 2016)
15,536

15,536

15,536

15,536

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

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

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

End of 29th Fiscal Period(as of June 30, 2016)
28,000,000

28,000,000－－

28,000,000

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

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

End of 29th Fiscal Period(as of June 30, 2016)
50,00050,0005959

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

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

29th Fiscal Period(January 1, 2016 –June 30, 2016)

A. Rent Revenue-Real Estate
Rent Revenue

Parking revenues
Advertising expenses

257,162
61,001

Antenna use fees

21,022

Other

36,5839,731,276
1,581,000
1,730,426
257,579
61,41322,12436,21013,223,806

13,420,030

778,335

Rents
Land rents
Common charges

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

Subtotal
Other rental revenues
Incidental income
Time-based parking revenues
Cancellation charges

5,503
37,643

668,408
5,044
83,396

Income equivalent to expenses for restoration
to original condition

36,44843,386

Other miscellaneous income

23,64926,433

Subtotal

881,579

826,668

Total rent revenue-real estate

14,105,386

14,246,699

Outsourcing expenses
Utilities expenses

531,924
876,068

Property and other taxes

2,019,291

Casualty insurance
Repairs and maintenance

28,053
270,370

Property management fees
Management association accounts

228,211
581,485
1,875,064
142,709530,228
765,744
2,067,746
27,362420,046
240,310580,300
1,885,187
141,315

6,553,179

6,658,243

7,552,207

7,588,456

B. Expenses Related to Rent Business

Depreciation
Other
Total expenses related to rent business
C. Profits(A-B)(Notes to Statements of Changes in Unitholders’ Equity)
Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

6060

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

29th Fiscal Period(January 1, 2016 – June 30, 2016)

5,000,000 units

5,000,000 units

873,000 units

873,000 units

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

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

29th Fiscal Period(January 1, 2016 – June 30, 2016)

Cash and deposits

13,505,100

14,277,826

Cash and deposits in trust

11,831,284

12,137,178

Cash and cash equivalents

25,336,385

26,415,004(Leases)

Future lease revenues under non-cancelable operating leases

(Thousands of yen)

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

29th Fiscal Period(January 1, 2016 – June 30, 2016)

Due within one year

7,101,796

6,766,426

Due after one year

19,442,194

12,618,587

Total

26,543,990

19,385,014

(Financial Instruments)

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

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

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

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

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

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

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

6161

Financial Statements

Carrying Value(Note 1)

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

Estimated Fair
Value (Note 1)

Difference

13,505,100

13,505,100－

Cash and deposits in trust

11,831,284

11,831,284－(3)

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

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

54,891(5)

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

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

1,500,242(7)

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

2,346,618

The following are the carrying values and estimated fair values as of June 30, 2016 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3)Carrying Value(Note 1)

(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

14,277,826

14,277,826－(2)

Cash and deposits in trust

12,137,178

12,137,178－(3)

Short-term loans payable

－

－

－

(4)

Current portion of long-term loans payable(24,732,000)(24,887,253)

155,253(5)

Current portion of investment corporation bonds(7,000,000)(7,018,900)

18,900(6)Investment corporation bonds(34,500,000)(36,773,623)

2,273,623(7)

Long-term loans payable(109,894,000)(113,558,707)

3,664,707(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thus statedat that book value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the book value and is thus stated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as
it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans
payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being
applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since
it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
Category

6262

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

End of 29th Fiscal Period(as of June 30, 2016)

Tenant leasehold and security deposits

7,537,730

7,686,149

Tenant leasehold and security deposits in trust

12,821,233

12,859,392

Japan Prime Realty Investment Corporation(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 28th fiscal period (December 31, 2015)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

13,505,100

－

－

－

－

－

Cash and deposits in trust

11,831,284

－

－

－

－

－

Scheduled redemption of monetary claims to be due after the account closing date of the 29th fiscal period (June 30, 2016)(Thousands of yen)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Cash and deposits

14,277,826

－

－

－

－

－

Cash and deposits in trust

12,137,178

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after
the account closing date of the 28th fiscal period (December 31, 2015)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Short-term loans payable

1,000,000

－

－

－

－

－

Investment corporation bonds

7,000,000

5,000,000

7,000,000

4,000,000－

18,500,000

Long-term loans payable

18,332,000

32,632,000

16,408,000

17,100,000

17,000,000

32,320,000Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after the accountclosing date of the 29th fiscal period (June 30, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

－

－

－

－

－

－

Investment corporation bonds

7,000,000

10,000,000

2,000,000

4,000,000－

18,500,000

Long-term loans payable

24,732,000

21,374,000

17,200,000

14,000,000

15,820,000

41,500,000

Short-term loans payable(Securities)

28th fiscal period (as of December 31, 2015)
Not applicable
29th fiscal period (as of June 30, 2016)
Not applicable(Derivative Transactions)

28th fiscal period (as of December 31, 2015)

Not applicable as JPR conducted no derivative transactions
29th fiscal period (as of June 30, 2016)
Not applicable as JPR conducted no derivative transactions(Retirement Benefits)

28th fiscal period (as of December 31, 2015)

6363

Financial Statements

Not applicable as JPR does not have any retirement benefit system

29th fiscal period (as of June 30, 2016)
Not applicable as JPR does not have any retirement benefit system(Tax Effect Accounting)

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



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

Effective statutory tax rate
(Adjustment)
Deductible cash distributions

32.31%

32.31%



(32.31%)(32.31%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%



(Equity Method Income and Retained Earnings)

28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable as JPR does not have any affiliated companies
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)

1. Parent Company and Major Corporation Unitholders
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable

2. Subsidiaries
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable

3. Sister Companies
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable

4. Directors and Major Individual Unitholders
28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable(Asset Retirement Obligations)

28th fiscal period (July 1, 2015 – December 31, 2015)
Not applicable
29th fiscal period (January 1, 2016 – June 30, 2016)
Not applicable

6464

29th Fiscal Period(January 1, 2016 – June 30, 2016)

Japan Prime Realty Investment Corporation(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.
[Related Information]
28th fiscal period (July 1, 2015 – December 31, 2015)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenues on theStatements of Income and Retained Earnings.
29th fiscal period (January 1, 2016 – June 30, 2016)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenues on theStatements of Income and Retained Earnings.

6565

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

Carrying Value on the Balance Sheets
Balance at Beginning of Period

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

Balance at End of Current Period392,612,013(265,973)
392,346,040
411,481,000

Amount of Increase (Decrease) during the Period(Thousands of yen)

29th Fiscal Period(January 1, 2016 – June 30, 2016)

Estimated Fair Value at End of Period

392,346,040(1,106,773)
391,239,266
419,881,000(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) the amount of increase for the 28th fiscal period is primarily attributable to additional acquisition of Shinjuku Square Tower(807,283 thousand yen), and the amount of decrease for the period is primarily attributable to depreciation (1,875,064 thousand yen). Of the amount of increase(decrease) the amount of decrease for the 29th fiscal period is primarily attributable to depreciation (1,885,187 thousand yen).

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

The income (loss) in the 28th and 29th fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)
28th Fiscal Period(July 1, 2015 – December 31, 2015)


Total net assets per unit
Net income per unit

29th Fiscal Period(January 1, 2016 – June 30, 2016)

247,696 yen

247,862 yen

6, 586 yen

6, 754 yen(Note 1) Net income per unit is computed by dividing net income by the weighted-average number of units outstanding during the current fiscal period. Diluted net income
per unit has not been presented since no subscription rights to shares are outstanding.
(Note 2) Net income per unit was calculated based on the following data:Net income (thousands of yen)Amounts not attributable to ordinary unitholders (thousands of yen)

Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period

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

29th Fiscal Period(January 1, 2016 – June 30, 2016)
5,896,720－
5,749,679－
5,896,720

873,000 units

873,000 units(Subsequent Events)
Property Sale
As of August 30, 2016, JPR decided on the sale of the following property pursuant to the targets and policy of asset management as set
forth in its Articles of Incorporation. The sale price excludes the settlement amount equivalent to property taxes and urban planningtaxes, consumption taxes and others. The profile of the buyer is not disclosed due to its intention of nondisclosure.
<JPR Daikanyama>
Asset type:
Sale price:
Contract date:
Planned delivery date:
Impact on earnings:

6666

Real estate
1,880 million yen
August 30, 2016
September 29, 2016
JPR plans to record 299 million yen of loss on sale of real estate to operating expenses for the
30th fiscal period (July 1, 2016 – December 31, 2016).

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

Asset Type

Current Assets

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

Intangible Assets
Leasehold rights
Other
Total

Accumulated Depreciation
Increase
Decrease
Balance as of
Balance as ofDepreciation Net Balance as ofduring theduring the
Or Accumulated
January 1, 2016
June 30, 2016
June 30, 2016
during the
PeriodPeriodRemarks
Amortization(thousands of(thousands of(thousands ofPeriod(thousands of (thousands of(thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)
yen)
-

-

-

-

-

-

-

56,968,858
51,728

180,884
1,685

1,699

57,149,742
51,715

13,477,853
17,671

791,226
1,373

43,671,889
34,044

726,505

15,667-742,172

399,899

19,210342,273

59,247

3,154-

62,40136,881

2,378

25,519108,898,331--

108,898,331--

108,898,331

1,957

34,01035,967----

166,706,628

235,40237,666

166,904,363

13,932,305

814,189

152,972,058

87,256,990
119,876

529,361--

87,786,352
119,876

28,675,361
74,494

1,030,998
2,837

59,110,990
45,381

1,616,054

39,761-

1,655,815

1,273,279

31,461

382,535

169,164

8,874-

178,038

118,882

5,635

59,156

173,871,178

2,196

-

173,873,374--

173,873,374

-

100

100

-

-

-

-

263,033,263

580,294100

263,613,458

30,142,018

1,070,933

233,471,439

429,739,891

815,696

37,766

430,517,821

44,074,323

1,885,122

386,443,498

4,794,109
7,602

-

5,000

4,794,109
2,602

943

231

4,794,109
1,658

4,801,712

-

5,000

4,796,712

943

231

4,795,768(Note 1) The “Increase during the Period” is due to property acquisition and construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of construction completion for construction in progress and construction inprogress in trust, and due to asset retirement for structures.

4) Schedule of Other Specified Assets
Not applicable6767

Financial Statements

5) Schedule of Investment Corporation Bonds
Name

Issue Date

Balance as ofJanuary 1,
2016(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000-

4,500,000

2.900

Dec. 14, 2026

Thirteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

7,000,000-

7,000,000

0.950

Oct. 25, 2016

Fourteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

2,000,000-

2,000,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

5,000,000-

5,000,000

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

2,000,000-

2,000,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

5,000,000-

5,000,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000-

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000-

5,000,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

2,000,000-

2,000,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000-

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000-

3,000,000

0.831

Dec. 4, 2024

41,500,000-

41,500,000

Total

Decreaseduring the
Period(thousands ofyen)

Balance as ofJune 30, 2016
(thousands ofyen)

CouponRate(%)

Maturity Date

Use

Remarks(Note 2)

Unsecured(Note 1) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds(Note 2) Funds are used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses), repaying loans payable and redeeming
investment corporation bonds, etc.
(Note 3) Amounts of investment corporation bonds to be redeemed within five years after the date of the balance sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)

Investment corporation
bonds

6868

7,000,000

10,000,000

2,000,000

4,000,000

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

6) Schedule of Loans Payable

Increase
Decrease
Balance asduringduringBalance as ofof January
Current
Current June 30, 2016
1, 2016
PeriodPeriod(thousands of(thousands(thousands (thousands
yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

1,000,000-

1,000,000-

0.309%

Mar. 25, 2016 (Note 4)

Total

1,000,000-

1,000,000-

LenderIncrease
Decrease
Balance asduringduringBalance as ofof January
Current
Current June 30, 2016
1, 2016
PeriodPeriod(thousands of(thousands(thousands (thousands
yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Mizuho Bank Ltd.

5,000,000-

5,000,000-

1.414%

Feb. 4, 2016

Mizuho Bank Ltd.

7,000,000--

7,000,000

1.093%

Mar. 30, 2017

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.027%

Dec. 5, 2019

Mizuho Bank Ltd.

3,000,000--

3,000,000

0.970%

Nov. 27, 2020

Mizuho Bank Ltd.

5,000,000--

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.011%

Mar. 11, 2024
Mar. 24, 2025

LenderShort-term loans payable
Sumitomo Mitsui Trust Bank, Limited

Long-Term Loans Payable (Note 1)

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.056%

Mizuho Bank Ltd.

-

5,000,000-

5,000,000

0.804%

Feb. 4, 2026

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000,000-

5,000,000-

1.198%

Mar. 25, 2016

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.178%

Aug. 8, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.948%

Aug. 8, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000--

3,000,000

0.919%

Sept. 5, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000--

3,000,000

0.970%

Nov. 27, 2020

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,000,000--

4,000,000

0.889%

Jun. 25, 2021

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

5,000,000-

5,000,000

0.510%

Mar. 25, 2024

Sumitomo Mitsui Banking Corporation

6,400,000--

6,400,000

1.093%

Mar. 30, 2017

Sumitomo Mitsui Banking Corporation

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

3,000,000--

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

2,500,000--

2,500,000

1.033%

Jun. 27, 2022

Shinsei Bank, Ltd.

5,000,000--

5,000,000

1.397%

Apr. 5, 2019

Shinsei Bank, Ltd.

2,000,000--

2,000,000

1.076%

Sept. 24, 2020

Shinsei Bank, Ltd.

2,000,000--

2,000,000

1.134%

Dec. 5, 2024

Aozora Bank Ltd.

900,000--

900,000

0.994%

Jul. 3, 2017

Aozora Bank Ltd.

2,000,000--

2,000,000

1.178%

Aug. 8, 2019

Aozora Bank Ltd.

2,000,000--

2,000,000

0.985%

Aug. 25, 2017

Aozora Bank Ltd.

2,000,000--

2,000,000

1.146%

Aug. 30, 2018

Aozora Bank Ltd.

1,000,000
2,700,000-

100,000

1,000,000
2,600,000

1.069%
3.190%

Sept. 24, 2020

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

820,000--

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000--

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000--

2,000,000

1.056%

Mar. 24, 2025

Mizuho Trust & Banking Co., Ltd.

4,000,000--

4,000,000

1.093%

Mar. 30, 2017

Mizuho Trust & Banking Co., Ltd.

3,000,000--

3,000,000

1.076%

Feb. 4, 2020

Mitsubishi UFJ Trust and Banking
Corporation

5,000,000--

5,000,000

1.184%

Aug. 29, 2017

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

0.873%

Aug. 31, 2023

Use

Remarks

Unsecured/
Unguaranteed/
Non-Subordinated

Use

Remarks(Note 4)

Unguaranteed/

Unsecured/

Non-Subordinated(Note 5)6969

Financial Statements

Long-Term Loans Payable (Note 1)
The Bank of Fukuoka

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2016
2016
PeriodPeriod(thousands of(thousands of(thousands (thousands
yen)
yen)
of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

2,000,000--

2,000,000

1.170%

Jul. 7, 2016

The Bank of Fukuoka

1,000,000--

1,000,000

0.911%

Sept. 24, 2019

The Bank of Fukuoka

2,000,000--

2,000,000

0.816%

Oct. 6, 2023

Meiji Yasuda Life Insurance Company

3,472,000-

66,0003,406,000

1.800%(Note 6)

Meiji Yasuda Life Insurance Company

1,000,000--

1,000,000

1.042%

Feb. 5, 2025

Sompo Japan Nipponkoa Insurance Inc.

2,000,000--

2,000,000

0.981%

Oct. 11, 2016

Sompo Japan Nipponkoa Insurance Inc.

2,000,000--

2,000,000

0.759%

Dec. 25, 2023

ORIX Bank Corporation

1,000,000--

1,000,000

0.786%

Feb. 5, 2018

ORIX Bank Corporation

2,000,000--

2,000,000

0.762%

May 27, 2019

Shinkin Central Bank

3,000,000--

3,000,000

0.689%

Dec. 5, 2018

The Shinkumi Federation Bank

3,000,000--

3,000,000

0.786%

Feb. 5, 2018

Taiyo Life Insurance Company

1,000,000--

1,000,000

0.949%

Jun. 4, 2018

Taiyo Life Insurance Company

1,000,000--

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000--

1,000,000

0.969%

Sept. 24, 2024

Chugoku Bank

1,000,000--

1,000,000

0.758%

Sept. 25, 2018

Chugoku Bank

2,000,000--

2,000,000

0.816%

Oct. 6, 2023

The Nishi-Nippon City Bank, Ltd.

3,000,000-

3,000,000-

1.149%

May 27, 2016-

3,000,000-

3,000,000

0.646%

May 27, 2026

The Hachijuni Bank

1,000,000--

1,000,000

0.424%

Sept. 26, 2016

The Hachijuni Bank

1,000,000--

1,000,000

0.489%

Oct. 9, 2020

Resona Bank, Ltd.

2,000,000--

2,000,000

1.093%

Mar. 30, 2017

The Iyo Bank, Ltd.

1,000,000--

1,000,000

0.816%

Oct. 6, 2023

Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
The Norinchukin Bank

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

1,000,000--

1,000,000

0.440%

Dec. 5, 2017-

1,000,000-

1,000,000

0.691%

Mar. 25, 2026

14,000,000 13,166,000

134,626,000

The Nishi-Nippon City Bank, Ltd.

Sumitomo Mitsui Trust Bank Limited
Total

133,792,000

Use

Remarks(Note 4)

Unsecured/
Unguaranteed/
Non-Subordinated(Note 1)

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

(Note 2)

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

Long-term loans payable(Note 3)(Note 4)(Note 5)(Note 6)7070

24,732,000

21,374,000

17,200,000

14,000,000

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

15,820,000Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report7171

Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
28th Fiscal Period(July 1, 2015 – December 31, 2015)

29th Fiscal Period(January 1, 2016 – June 30, 2016)

No property and equipment was leased to JPR

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

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

Name ofCompany,etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

38,312

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
1,249(Note) Transaction terms are determined based on prevailing market conditions.

29th fiscal period (January 1, 2016 – June 30, 2016)
Attribute

Asset
CustodianName ofCompany,etc.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

Bankingbusiness andtrust business

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

－

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

7272

Transactions

Transaction
Amount(thousands of
yen)

－

－

－

－

Interest
expenses

37,895

Account

Long-termloans payable
Current
portion of
long-termloans payable
Accruedexpenses

Balance at End
of Period(thousands ofyen)

3,000,000
4,000,000
624

Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of June 30, 2016)
Market capitalization: ¥384.9 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 29th Fiscal Period: ¥441,000 (June 30, 2016) Low:

Trading Volume(units)
32,000¥130,300 (October 28, 2008)

Trading Volume (units)

Unit Price (yen)Unit Price(yen)
580,000

28,000520,000

Offer price at additional offering: ¥449,820

24,000460,000

Offer price at additional offering: ¥394,875

20,000400,000

16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

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

220,000

Offer price at IPO: ¥200,000

Offer price at additional offering: ¥194,610
160,000
Offer price at additional offering: ¥168,101

4,000

0

100,000

Jun. 14 Jul. 1 Jan. 5 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 3 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 5 Jul. 1
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

Aug. 5(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of June 30, 2016)
Other domestic
corporations

Foreign investors

378

232

(3.20%)(1.96%)

Financial institutions(including securities firms)

186(1.57%)

Number ofunitholders
by investor type36,075 units(4.13%)(23.76%)

Other domestic
corporations

11,786

Individuals

Foreign investors

207,437 units

82,533 units(9.45%)

Number ofinvestment units
by investor type873,000
units

Individuals

Financial institutions(including securities firms)

546,955 units

10,990(62.65%)(93.24%)(Note) The composition ratio is rounded to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

73Introduction to the JPR Website

http://www.jpr-reit.co.jp/en/

8955(Securities Code)JPR endeavors to conduct IR activities and information
provision by offering a variety of contents on its website
in order to secure timely disclosure of information toinvestors and help them gain a better understanding of
JPR.
Point 1 Digest of Financial Results

Point 1A digest version movie of theanalyst meeting is provided topresent JPR’s latest financial
results, asset management
status, future growth strategies
and other matters.

Point 2 Briefing Sessions and Events

Point 2

Point 3IR Mail Delivery Service
The IR Mail Delivery Service provides information
on JPR in a timely manner to registered persons. If you wish to beregistered, please click this icon to apply.

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

Point 3 Property Overview
Detailed explanations of
JPR’s properties are provided,
including their features,
specifications and revenues
and expenses. The accessroutes to respective properties
from the nearest stations canbe searched by smartphone.
We advise you to use thisfunction when you wish tovisit the properties.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

More than once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant of JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

Unitholders of record as of June 30 and December 31 of each year

Transfer Agent

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

Location of Records

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

Mailing Address

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

Contact by Phone

0120-288-324 (toll-free only in Japan)

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Procedures for Change of Address
For filing or inquiring about a change of address, please contact your securities company with whom you have an account. For unitholders who have notutilized Japan Securities Depository Center, Inc. before the dematerialization of stock certificates, accounts (special accounts) have been opened at Mizuho
Trust & Banking Co., Ltd., JPR’s transfer agent. For filing or inquiring about a change of address and other matters with regard to your special account,please direct them to the contact number indicated above.
Cash Distributions
Cash distributions can be collected by bringing the “unitholder dividend receipt” to the nearest Japan Post Bank main or branch office, sub-branch office orpost office (bank agent) in Japan. If the collection period has elapsed, please make your collection by designating the collection method on the back of the“unitholder dividend receipt” and mailing it to Mizuho Trust & Banking’s Stock Transfer Agency Division. Cash distributions can also be collected at the mainor branch offices of Mizuho Trust & Banking (excluding the Trust Lounge) and Mizuho Bank, Ltd.
If you wish to designate a transfer of cash distributions to a bank, etc., please contact your securities company (if you have an account with the company) or
Mizuho Trust & Banking (if a special account has been opened), as in the case of changing the address, etc. above.
(Note) According to the provisions of JPR’s Articles of Incorporation, cash distributions will become irretrievable if they remain unclaimed for three full years from the date on which payment commenced. We advisethat cash distributions be received as soon as possible.