Corporate Profile
Established on September 14, 2001, Japan Prime Realty Investment Corporation (JPR or theCompany) is a closed-end corporate fund that focuses on a diverse investment portfolio of
office and retail properties. Through its investment activities, JPR has been awarded high credit
ratings from rating agencies, reflecting the Company's high-quality portfolio, earnings stability
and sound financial standing. As of June 30, 2010, JPR had an investment portfolio totaling
331.28 billion yen on an acquisition basis, 460 tenants and 55 properties, and is recognized as
one of the top diversified REITs in Japan.

Contents Investment Highlights

1

Message to Our Unitholders

2

Account Highlights

3

Investment Unit Status

4

New Acquisitions during the 17th Fiscal Period and After

5

Portfolio Topics

6

Property Portfolio

8

Overview of Portfolio Properties

14

Characteristics and Corporate History

21

Overview of the Asset Manager

23

Overview of Asset Management

25

Overview of the Investment Corporation

31

Status of JPR's Assets under Management

32

Capital Expenditures of Owned Real Estate

37

Expenses and Liabilities

38

Acquisition and Sale during the 17th Fiscal Period

40

Overview of Accounting

42

Other

43

Balance Sheets

44

Statements of Income and Retained Earnings

46

Statements of Unitholders' Equity

47

Notes to Financial Statements

48

Report of Independent Auditors

56

Statements of Cash Flows (Information Only)57

JPR Investment Policies (Reference)

59

Investor Information

68

Investment Highlights
Portfolio Overview
Top-ranked diversified J-REIT
Focusing on high-quality office buildings and high-profile retail properties
Sponsored by major real estate developers, a general contractor, financial institutions
Providing support in property pipeline and financial aspects through expertise inreal estate, construction and finance

Growth Strategies
Investment placing emphasis in properties with strong potential located in the Tokyo area using
diversified acquisition method
Maintaining high occupancy level through reinforce the competitiveness of the properties
Maintaining conservative financial operations and maintaining a stable financial foundation

Targets
Asset size exceeding 500 billion yen
Raise cash distribution per unit

1Message to Our Unitholders
We are delighted to have this opportunity to provide an overview of the asset management and financial
results of Japan Prime Realty Investment Corporation (JPR) for its 17th fiscal period (January 1, 2010 - June30, 2010).
With regard to the portfolio, JPR acquired the Tokyo Tatemono Kyobashi Building, TK Horidome Building
and JPR Sendagaya Building for a total of 25.4 billion yen on an acquisition price basis, and sold the JPR
Nagoya Sakae Building and a portion of land for the JPR Jingumae 432.
As a result, JPR's portfolio consisted of 55 properties, or 331.2 billion yen on an acquisition price basis, asof the end of the fiscal period.
As for financing, JPR further enhanced its financial standing. From February to March 2010, it implemented
its first public offering in about three years and procured 14.6 billion yen, making the total of unitholders'
capital 171.3 billion yen. Furthermore in March and May, it issued unsecured corporate bonds with fiveyear terms, first for 6 billion yen and then for 7 billion yen.
With regard to the financial results of the 17th fiscal period, due to factors such as full-period occupancy ofthe property acquired in the previous period, partial in-period contributions from new properties acquired
during the period, as well as contributions from gains on the sales of the abovementioned properties, JPR
recorded 12,314 million yen in operating revenue, 4,964 million yen in ordinary income and 4,963 million
yen in net income.
As for cash distribution in the 17th fiscal period, we decided to retain a certain portion of unappropriatedretained earnings within the company for the purpose of strengthening our financial standing, which is
to become the foundation of sustainable growth of JPR, but within the limit of not placing a burden of
additional income taxes on our unitholders.
Therefore the cash distribution per unit came to 6,770 yen.
JPR will continue working with Tokyo Realty Investment Management, Inc., our asset managementcompany, to realize stable growth of our portfolio over the medium to long term by conducting prudent
and careful asset management. With these efforts and commitment, we endeavor to meet the expectationsof our unitholders.
We ask for your continued understanding and support of our operations.

Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation2

Account Highlights(All amounts in millions of yen unless otherwise stated)
13th Fiscal Period
endedJune 2008

14th Fiscal Period
ended
December 2008

15th Fiscal Period
endedJune 2009

16th Fiscal Period
ended
December 200917th Fiscal Period
endedJune 2010

Operating revenues

10,83011,171

14,33011,493

12,314

Ordinary income

4,452

4,433

5,572

4,333

4,964

Net income

4,451

4,432

2,331

4,332

4,963

Total cash distributions

4,451

4,432

2,331

4,333

4,840

Total assets

303,459309,253

329,163

332,380

358,339

Total unitholders' equity

161,177

161,158

159,057

161,058

176,303

53.1

52.1

48.3

48.5

49.2

Unitholders' equity per unit (yen)257,883

257,853

254,492

257,693

246,578

Cash distribution per unit (yen)

7,122

7,092

3,731

6,933

6,770

Equity ratio (%)

Operating Revenues and Net Income

15,000Total Assets and Total Unitholders' Equity

350,000

Cash Distribution per Unit

8,000

300,000
12,0006,000

250,000

9,000

200,000
4,000
150,000

6,000
100,000
2,000
3,000
50,000

0

0
13th
14th
15th
16th 17th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

0
13th
14th
15th
16th
17th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Operating revenues (million yen)

Total assets (million yen)

Net income (million yen)

Total unitholders' equity (million yen)

13th
14th
15th 16th
17th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Cash distribution (yen)3Investment Unit Status
Historical Unit Price
Trading Volume (units)
Unit Price (yen)Trading
VolumeAs of August 5, 2010
Market capitalization: ¥138.4 billion
High: ¥564,000 (May 7, 2007)
Low: ¥130,300 (October 28, 2008)
Unit price at end of 17th Fiscal Period: ¥187,700 ( June 30, 2010 )32,00028,00024,000580,000
520,000
460,000

PO
Offering: ￥449,820

20,000Unit
Price400,000
340,000

16,00012,000PO
Offering: ￥237,160

8,000

0
J
e 14 uly 1
, 20
02

Jun

Jan

. 6,

280,000
220,000

PO
Offering: ￥168,101

ListedTokyo Stock Exchange
Offering: ￥200,000

4,000

PO
Offering: ￥272,440

160,000

100,000A
J
J
J
J
July Jan
J
J
J
J
J
J
J
J
. 5, uly 1 an. 4, uly 1 an. 4, uly 1 an. 4, uly 1 an. 4, uly 1 an. 4, uly. 1 an. 4 2 ug. 5
200
200 1
200
200
200
200
200
0
10
9
3
4
5
6
7
8

(Note) Unit prices are based on closing prices.

Breakdown of Unitholders at End of Period

Number ofUnits

715,000 units Unitholders
28,0007.56%
54,073 units

700,000

600,000

625,000 units

625,000 units

625,000 units

625,000 units

7.05%
44,118 units

7.26%
45,416 units

7.72%
48,270 units

8.08%
50,560 units

11.84%
74,057 units12.15%
75,986 units12.33%
77,100 units12.35%
77,207 units

11.58%
82,846 units

500,000

20,00024.57%
153,613 units

24.86%
155,403 units

25.63%
160,245 units

26.43%
165,224 units

28.81%
206,019 units

400,000

16,000300,000

12,000200,000

56.51%
353,212 units

55.07%
344,227 units

54.93%
54.93%
343,353
343,353 units
units

53.12%
332,009 units

52.03%
372,062 units

100,000

0

8,000

4,000

13th Fiscal Period

14th Fiscal Period

Financial Institutions(including securities firms)

4

24,00015th Fiscal Period

ForeignInvestors

16th Fiscal Period

Other Domestic
Corporations(Note) The composition ratio is rounded to two decimal places.

Individuals

17th Fiscal Period0

Number of Individual
Investors

New Acquisitions during the 17th Fiscal Period and After
Property Acquired in the 17th Fiscal Period

A 19Tokyo Tatemono Kyobashi Building

A 20

TK Horidome Building

Location

Location

Acquisition Date

Acquisition Date

Acquisition Price

Acquisition Price

Chuo Ward, Tokyo

Chuo Ward, Tokyo

March 31, 2010

February 12, 2010

￥5,100 million￥5,250 million

Site Area

Site Area

547.10m

937.59m

2

2

Total Floor Space

Total Floor Space

4,419.79m

7,190.82m

22

Floors

Structure

Floors

Structure

B1/10F

SRC/S

B1/9F

SRC

Completed

Completed

January 1981

June 2002

Property to be Acquired in the 18th Fiscal Period

A 21

JPR Sendagaya Building

BYGS Shinjuku Bldg. (additional ownership) A

Location

Location

Shibuya Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Date

Acquisition Date

Acquisition Price

Acquisition Price

May 31, 2010

July 13, 2010

￥15,050 million

Site Area

2,217.49m￥3,300 million

Site Area

2

Total Floor Space

7,683.19m

SCompleted

Floors

8F

May 2009

3,522.46m

2

Total Floor Space

25,733.10m

2Structure182Structure

SRC

Completed

FloorsB2/14F
April 1985

JPR owns 75% of the co-ownership of BYGS Shinjuku Bldg. andthe acquisition of additional 25% co-ownership will bring JPR to
hold the entire ownership.

5

Portfolio Topics
Portfolio Growth
Occupancy rate (%)

100.0
90.0

Total acquisition
price (billion yen)

Total acquisition priceTotal leasable floor space

320
280
240
200
160
120

80
40
0

End ofNov.
2001

End ofJun.
2002

End ofDec.
2002

End ofJun.
2003

End ofDec.
2003

End ofDec.
2004

End ofJun.
2005

End ofDec.
2005

Total acquisition
price (billion yen)

40.73

92.18

94.59

125.79139.64163.65179.62

197.65202.66

Total leasable
floor space (m2 )

94,935.49

162,739.50

168,987.78

201,808.72

218,734.67

256,329.13

273,330.52

281,408.97

308,205.26

Occupancy rate
(%)

96.3

94.1

93.4

93.5

92.7

93.2

95.1

95.4

97.2

Properties

13

25

27

30

32

38

42

42

42

Total numberof tenants

133

281

311

324

357

437

496

459

441

(Note 1)

When a single tenant leases multiple rooms in the same property, the tenant is counted as one.
If the leased rooms are in multiple buildings, the tenant is counted in plural.

(Note 2)Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees.
Accordingly, the leasable floor space of the building as it relates to JPR's ownership is calculated by multiplying the total contracted areas of offices, shops
and warehouses the management company can sublease to sub-lessees by the rent allocation ratio of JPR (39.70457% up to the end of June 2008 and with the additional
acquisition in September 2008, 40.31465% from the end of December 2008) to arrive at the rent allocated to JPR.
The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent allocation ratio.
Each figure has been rounded to the second decimal point.
The number of sub-lessees of the Shinjuku Square Tower is also regarded as the number of tenants.

Portfolio Diversification by Region
Value breakdown by acquisition price

Other Cities

17.6%

Tokyo CBDs

49.5%

( ￥58,227 million) ( ￥163,826million)

Tokyo CBDs

Value breakdownby monthly rental revenue at period end
Tokyo CBDs

Other Cities

19.9%( ￥371 million)

Greater Tokyo

33.0%

42.2%

( ￥785 million)( ￥95,200 million)

71.3%( ￥236,084 million)

Tokyo CBDs

Other Cities

28.2%(111,290.52 m2 )

29.4%

(116,094.23 m2)(167,901.58 m 2 )42.5%

Office buildings

Value breakdownby monthly rental revenue at period end( ￥487 million)

Retail properties
Value breakdownby leased floor space at period end

Retail properties

26.2%
Office buildings

Value breakdownby leased floor space at period end

Greater Tokyo

Retail properties

Retail properties

28.7%

Other Cities

Greater Tokyo

Portfolio Diversification by Asset Class
Value breakdown by acquisition priceGreater Tokyo( ￥704 million)

37.9%( ￥109,231 million)

6

End ofJun.
2004

Office buildings

73.8%( ￥1,373 million)

40.5%(159,895.28 m 2 )Office buildings

59.5%(235,391.05 m 2 )Total leasable
floor space (m2)

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000End ofJun.
2006

End ofDec.
2006

End ofJun.
2007

End ofDec.
2007

End ofJun.
2008

End ofDec.
2008

End ofDec.
2009

End of
Jun.
2009

0

End ofJun.
2010

209.22222.48245.39251.90275.10280.61

299.41

310.61331.28315,156.84

337,382.05

361,574.77

373,609.99

383,491.03

383,215.57

393,532.31

400,751.87

410,326.04

98.0

98.6

99.0

98.4

97.5

96.4

96.8

96.4

95.5

44

46

48

49

50

52

51

53

55

462

479

491

517

537

499

476

476

460

(Note 3) The tenants of Shinjuku Center Building, Rise Arena Bldg. and Kawasaki Dice Building have sublet space to a sub-lessee and a lease agreement has been executed where therent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the total leasable floor space, total leased floor space and occupancy rate
entered for these buildings are the figures concerning the sub-lessee of the tenant and the number of sub-lessees is deemed to be the number of tenants.
(Note 4) In the event that the contracted area and the area based on which the rent is calculated differ, the situation was handled by making the latter the leased floor space through thefiscal period ended December 2006. Since the period ended June 2007, the contracted area has been made the leased area.

Major Tenants(As of June 30, 2010)

Tenant＃Name of Property

Leased floor area atperiod end (m2)Percentage of totalleased floor area atperiod end

1

ABC Development Corporation

Housing Design Center Kobe

35,444.13

9.0%

2

The Seiyu, Ltd.

Tanashi ASTA

31,121.71

7.9%

3Tokyo Tatemono Co., Ltd.

Shinjuku Center Building,
Arca East, Kawasaki Dice Bldg.

22,158.40

5.6%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

5.0%

5The Loft Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.7%

6

Shinjuku Square Tower Management Co., Ltd. Shinjuku Square Tower

11,268.27

2.9%

7

Olympic Corporation

Musashiurawa Shopping Square

9,558.51

2.4%

8

Tower Records Japan, Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

2.0%

9Sompo Japan Insurance Inc.

Kawaguchi Center Bldg.,
Yume-ooka Office Tower,
Sompo Japan Sendai Bldg.,
Sompo Japan Wakayama Bldg.

7,254.12

1.8%

10

Yuraku Real Estate Co., Ltd.

Rise Arena Bldg.

6,023.39

1.5%(Note) The areas of co-owned buildings corresponding to the portions owned by JPR are indicated.

7

Property Portfolio

A Tokyo CBDs

Ueno

Shinjuku Ward

A-14
A-11

Shinjuku

A-12
A-4

A-5
A-9 Chiyoda
A-17 Ward
A-4

A-3
A-18

A-1 Kanematsu Bldg.
A-15 Minami Azabu Bldg.
A-2 Kanematsu Bldg. Annex
A-16 Shinagawa Canal Bldg.
A-17 Rokubancho Bldg.
A-3 JPR Ningyo-cho Bldg.
A-18 Ryoshin harajuku Bldg.
A-4 Shin-Kojimachi Bldg.
A-19 Tokyo Tatemono Kyobashi Bldg.
A-5 JPR Crest Takebashi Bldg.
A-20 TK Horidome Bldg.
A-6 MS Shibaura Bldg.
A-21 JPR Sendagaya Bldg.
A-7 Gotanda First Bldg.
A-1 JPR Shibuya Tower Records Bldg.
A-8 Fukuoka Bldg.
A-2 JPR Daikanyama
A-9 JPR Ichigaya Bldg.
A-3 JPR Jingumae 432
A-10 Oval Court Ohsaki Mark West
A-4 Shinjuku Sanchome East Bldg.
A-11 Shinjuku Square Tower
A-5 Yurakucho Ekimae Bldg.
BYGS
Shinjuku
Bldg.
A-12(Yurakucho Itocia)
18th
Fiscal Period Acquisition
A-13 Across Shinkawa Bldg. Annex
A-12 BYGS Shinjuku Bldg.
A-14 Shinjuku Center Bldg.
(additional ownership)

Minato Ward

A-2

Tamachi

A-15

A-6

Shinagawa

GotandaA-7

A-10

Ohsaki

A-16

Shinagawa Ward

B-5

Minamiurawa

Musashiurawa

Kawaguchi

B-6
B-3

SAITAMA

TOKYO
Tanashi

Kinshicho

A-5Chuo Ward

Shibuya

B Greater Tokyo

A-20
A-3

A-13
A-1
A-8
A-2
A-19

Tokyo

Harajuku

A-1

B-1 B-11

Ichigaya

A-21

Shibuya Ward

B-8

B-7

Ikebukuro

B-1

CHIBA

B-9 Ueno
B-7

Shinjuku

Tachikawa

Tokyo

B-11
B-1

Kinshicho

Shibuya
Chiba

ShinagawaMusashikosugi

B-4
KANAGAWA

B-5

Musashikosugi(New Station)
KawasakiB-6

Shin-Yokohama
Yokohama
Nihon-Odori

B-10
8

B-3

Kamiooka

B-1 Arca East
B-2 JPR Chiba Bldg.
B-3 JPR Yokohama Nihon Odori Bldg.
B-5 Shinyokohama 2nd Center Bldg.
B-6 Kawaguchi Center Bldg.
B-7 JPR Ueno East Bldg.
B-8 Tachikawa Business Center Bldg.
B-9 Rise Arena Bldg.
B-10 Yume-ooka Office Tower
B-11 Olinas Tower
B-1 Tanashi ASTA
B-3 Cupo-la Main Bldg.
B-4 JPR Musashikosugi Bldg.
B-5 Musashiurawa Shopping Square
B-6 Kawasaki Dice Bldg.

B-2

C Other Cities
C-1

Niigata Ekinan Center 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-18 JPR Hakata-chuo Bldg.
C-19 Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

C-4

Housing Design Center Kobe

SENDAIC-12

NIIGATA

C-1

OSAKA
See below
KOBE

C-4

FUKUOKA

C-7
C-14
C-18

NAGOYA

C-19
WAKAYAMA

C-13

NAHA

C-9

C

C-1
C-5
Other Cities(Osaka City) Hankyu-Umeda

Chiyoda Ward
Chuo Ward
Minato Ward

Osaka

Tokyo CBDs
C-17

Shinjuku Ward
Shinagawa Ward
Shibuya Ward

Kitahama

Yodoyabashi

All other areas of Tokyo

C-4

Greater Tokyo

and Chiba, Kanagawa andSaitama Prefectures

HonmachiC-4

Tokyo Tatemono Honmachi Bldg.

C-17 JPR Dojima Bldg.
C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.

C-3
Shinsaibashi

All other areas in Japan
Nanba

Other Cities

9Location
Category

Tokyo
CBDs

Asset
Class

No.

OfficeA-1

Kanematsu Bldg.

Office

A-2

OfficeProperty Name

Completed

Acquired

Chuo Ward, Tokyo

1993.2

2001.12

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

1993.2

2001.12A-3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

1989.122001.11

OfficeA-4

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

1984.10

2001.11
2002.112004.11

OfficeA-5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

1999.92002.6

OfficeA-6

MS Shibaura Bldg.

Minato Ward, Tokyo

1988.2

2003.3

OfficeA-7

Gotanda First Bldg.

Shinagawa Ward, Tokyo

1989.7

2003.7

OfficeA-8

Fukuoka Bldg.

Chuo Ward, Tokyo

1990.5

2003.10
2005.4

OfficeA-9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

1989.3

2004.5

OfficeA-10

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo

2001.6

2004.6

OfficeA-11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

1994.10

2004.72008.9

OfficeA-12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1985.4

2004.112005.4

OfficeA-13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

1994.6

2004.11

OfficeA-14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1979.10

2008.3

Office

A-15

Minami Azabu Bldg.

Minato Ward, Tokyo

1992.6

2008.7

Office

A-16

Shinagawa Canal Bldg.

Minato Ward, Tokyo

2008.72008.12

OfficeA-17

Rokubancho Bldg.

Chiyoda Ward, Tokyo

1991.10

2009.12

Office

A-18

Ryoshin Harajuku Bldg.

Shibuya Ward, Tokyo

1989.32009.12

Office

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo Ward, Tokyo

1981.1

2010.2

OfficeA-20

TK Horidome Bldg.

Chuo Ward, Tokyo

2002.6

2010.3

OfficeA-21

JPR Sendagaya Bldg.

Shibuya Ward, Tokyo

2009.52010.5RetailA-1

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

1992.2

2003.6

RetailA-2

JPR Daikanyama

Shibuya Ward, Tokyo

2002.7

2004.10RetailA-3

JPR Jingumae 432

Shibuya Ward, Tokyo

2006.2

2006.3Retail

A-4

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

2007.1

2007.32008.4RetailA-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda Ward, Tokyo

2007.10

2008.8Location

Subtotal (26 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA
do not include the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

10

(As of June 30 , 2010)

Acquisition
Price (1)(millionsof yen)Percentage
of Total(2)

Ownership(3) (%)

Site Area(m )Total Leasable
Floor Space(m )(JPR's portion)

Occupancy
Rate (2)

No. ofTenants

RentalRevenue(thousandsof yen)16,2764.9

79.4

1,751.13

7,994.02

90.0

7

387,836

2,874

0.9

79.4

679.06

2,291.13

100.0

190,528

2,100

0.6

100.0

550.06

2,791.88

100.0

4

103,625

2,420

0.7

77.2

657.802,105.44
901.36312.533,319.33

94.1
100.0
100.0

10

77,34632,281
12,880

4,000

1.2

100.0

636.903,265.34

100.0

9125,365

11,2003.4

58.0

8,992.18

14,470.72

98.4

8539,873

2,920

0.9

59.6

1,551.19

4,243.58

100.0

2134,950

2,920

0.9

26.2

1,302.17

1,250.06
687.34

100.0
100.0

1

87,35638,973

5,100

1.5

100.0

1,058.04

4,227.12

81.0

7

153,342

3,500

1.1

23.9

4,006.00

4,088.44

100.0

3

177,670

10,1803.1

38.8

8,409.52

10,982.03
168.74
11,150.77

82.8

20

236,519
3,634

11,821

3.6

75.0

3,522.46

11,350.62

93.3

22

444,060

710

0.2

35.5

858.481,253.39

100.0

441,721

21,000

6.3

8.6

14,917.11

8,041.63

84.1

20

476,668

3,760

1.1

100.0

778.093,405.73

100.0

1(Note 5)

1,870

0.6

45.6

828.821,700.57

100.0

452,845

2,800

0.8

100.0

716.952,488.36

100.0

1(Note 5)

8,400

2.5

100.0

1,205.07

4,760.13

100.0

8266,279

5,250

1.6

100.0

547.103,499.31100.02(Note 5)

5,100

1.5

100.0

937.595,299.82

88.1

6

95,817

15,0504.5

100.0

2,217.49

6,177.74

73.5

3

151,257

12,0003.6

100.0

1,010.47

8,076.85

100.0

1345,576

2,160

0.7

100.0

277.12651.29100.0

441,566

4,275

1.3

100.0

198.101,027.33

100.0

594,861

2,740

0.8

12.5

2,578.69

2,347.81

100.0

178,306

3,400

1.0

1.9

6,808.12

1,101.92

100.0

1(Note 5)

163,82649.5

1,937.40

82.8

120,962.23

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of othersectional owners, etc. except for the following properties:
MS Shibaura Building:

The above site area indicates the area of the property and Trinity Shibaura that has beendeveloped in an integrated manner
Shinjuku Square Tower : The above site area and total leasable floor space indicate the area of the entire redevelopment
project
Rise Arena Building:
The above site area and total leasable floor space indicate the site area and floor space of theentire redevelopment project including the residential tower
Olinas Tower:
The above site area and total leasable floor space indicate the area including the commercial
building and the residential building.
Cupo-la Main Bldg.:
The above site area indicates the area of the entire redevelopment project(5) The portion owned by JPR are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.

11

Location
Category

Greater
Tokyo

Asset
Class

No.

OfficeB-1

Arca East

OfficeB-2

OfficeLocation

Completed

Acquired

Sumida Ward, Tokyo

1997.3

2001.11

JPR Chiba Bldg.

Chiba City, Chiba

1991.1

2001.12B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa

1989.10

2001.11

OfficeB-5

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

1991.8

2002.9

OfficeB-6

Kawaguchi Center Bldg.

Kawaguchi City, Saitama

1994.2

2004.2

OfficeB-7

JPR Ueno East Bldg.

Taito Ward, Tokyo

1992.10

2004.3

Property Name

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

1994.122005.92007.2

OfficeB-9

Rise Arena Bldg.

Toshima Ward, Tokyo

2007.1

2007.3

OfficeB-10

Yume-ooka Office Tower

Yokohama City, Kanagawa

1997.32007.7

OfficeB-11

Olinas Tower

Sumida Ward, Tokyo

2006.2

2009.6

RetailB-1

Tanashi ASTA

Nishitokyo City, Tokyo

1995.2

2001.11RetailB-3

Cupo-la Main Bldg.

Kawaguchi City, Saitama

2006.1

2006.3Retail

B-4

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa

1983.32006.9Retail

B-5

Musashiurawa Shopping Square

Saitama City, Saitama

2005.10

2007.3RetailB-6

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

2003.82007.4

OfficeC-1

Niigata Ekinan Center Bldg.

Niigata City, Niigata

1996.3

2001.11

OfficeC-4

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

1970.2

2001.112001.11

Subtotal (15 Properties)

Other
Cities

OfficeC-7

JPR Hakata Bldg.

Fukuoka City, Fukuoka

1985.6
2003.11

OfficeC-9

JPR Naha Bldg.

Naha City, Okinawa

1991.10

2001.11

OfficeC-12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

1997.12

2002.6

OfficeC-13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

1996.7

2002.6

OfficeC-14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

2000.7

2002.6

OfficeC-17

JPR Dojima Bldg.

Osaka City, Osaka

1993.10

2004.1

OfficeC-18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

1993.2

2004.6

OfficeC-19

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg. (Note 7)

Nagoya City, Aichi

1991.32005.3RetailC-1

JPR Umeda Loft Bldg.

Osaka City, Osaka

1990.4

2003.5-7
2005.5RetailC-3

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

2003.2
2005.1RetailC-4

Housing Design Center Kobe

Kobe City, Hyogo

1994.6

2005.9RetailC-5

JPR Chayamachi Bldg.

Osaka City, Osaka

1994.6

2006.8Subtotal (14 Properties)
Total (55 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA
do not include the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

12

(As of June 30 , 2010)

Acquisition
Price (1)(millionsof yen)Percentage
of Total(2)

Ownership(3) (%)

Site Area(m )Total Leasable
Floor Space(m )(JPR's portion)

Occupancy
Rate (2)

No. ofTenants

RentalRevenue(thousandsof yen)

5,880

1.8

38.3

3,755.01

7,022.76

100.0

6274,075

2,350

0.7

100.0

1,382.35

5,542.94

78.4

27

109,678

2,927

0.9

100.0

1,100.59

6,066.53

94.5

12

136,952

920

0.3

50.0

841.712,642.38

83.8

10

54,548

8,100

2.4

86.5

4,524.61

15,461.98

85.2

36

452,603

3,250

1.0

100.0

1,242.97

6,467.59

94.3

7

232,165

100.0
77.8

16

60,927
81,674

3,188

1.0

47.9

2,047.22

1,747.13
2,968.00
4,715.13

5,831

1.8

25.2

9,377.28

6,023.39100.0

1240,297

6,510

2.0

48.8

12,011.00

12,011.51

86.3

31

313,756

31,300

9.4

23.3

27,335.29

23,987.40

100.0

12

1,166,600

10,2003.1

43.6

12,326.30

31,121.71

100.0

1

596,400

2,100

0.6

16.7

15,008.28

5,963.00

100.0

1(Note 5)

7,260

2.2

100.0

4,761.62

19,740.95

100.0

1

(Note 5)

4,335

1.3

50.0

8,317.99

14,960.69

100.0

3

129,061

15,0804.6

46.6

4,475.45

13,066.69

99.3

20

481,174

109,231

33.0

2,140

0.6

32.9

2,706.99

5,326.89

98.2

9133,726

4,150

1.3

72.0

1,432.64

7,210.25

97.8

8

246,645

2,900

0.9

100.0

1,214.63

6,581.15

93.3

27

151,593

1,560

0.5

100.0

959.87

3,946.90

89.1

16

99,748

3,150

1.0

100.0

1,895.67

7,153.67

92.7

12

192,735

1,670

0.5

100.0

1,128.45

4,874.91

91.7

16

121,510

2,810

0.8

52.2

1,164.39

3,281.12

79.6

10

102,209

2,140

0.6

100.0

668.113,930.21

85.9

6

123,174

1,920

0.6

100.0

680.633,331.78

100.0

581,698

4,137

1.2

100.0

1,610.38

7,112.81

100.0

2

179,169

13,0003.9

100.0

3,518.68

18,586.97

100.0

1

402,411

5,430

1.6

100.0

609.315,303.98

100.0

1(Note 5)

7,220

2.2

100.0

3,994.47

35,444.13

100.0

1

(Note 5)

6,000

1.8

100.0

592.452,484.39

100.0

7138,050

58,227

17.6

114,569.16

331,284100.0

410,326.04

95.5

460

11,855,159(Note 6)

174,794.65

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of otherowners, etc. except for the following properties:
MS Shibaura Building:

The above site area indicates the area of the property and Trinity Shibaura that has beendeveloped in an integrated manner
Shinjuku Square Tower: The above site area and total leasable floor space indicate the area of the entire
redevelopment project
Rise Arena Building:
The above site area and total leasable floor space indicate the site area and floor space of theentire redevelopment project including the residential tower
Cupo-la Main Bldg.:
The above site area indicates the area of the entire redevelopment project
Olinas Tower:
The above site area and total floor space indicate the area
for the entire property including retail and residential towers.
(5) The Benetton Shinsaibashi Bldg. and the Housing Design Center Kobe are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.
(6) This includes rental revenues from JPR Nagoya Sakae Bldg. gained until its sales on March 24, 2010.
(7) The name of the Mitsubishi UFJ Lease & Finance Nagoya Head Office Bldg. was changed to JPR Nagoya Fushimi Bldg. asof Oct. 1, 2010.
The same is true to other pages where the Mitsubishi UFJ Lease & Finance Nagoya Head Office Bldg. is mentioned.

13

Overview of Portfolio Properties

New Acquistions during the 17th Fiscal Period and after are on page 5

A 1

Kanematsu Bldg.

A 2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥16,276 million
1,751.13m￥2,874 million

Total Floor Space

4,351.46m

14,995.09m

22Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/13F
February 1993

A 3

JPR Ningyo-cho Bldg.

SRC B1/8F

February 1993

A 4

Shin-Kojimachi Bldg.

Chuo Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,100 million
550.06m￥2,420 million

Total Floor Space

5,152.98m

4,117.70m

22Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B1/8F

December 1989

A 5

JPR Crest Takebashi Bldg.

A 6
Minato Ward, Tokyo
Acquisition Price

Site Area

Site Area￥11,200 million￥4,000 million
636.90m

8,992.18m

2

2

Total Floor Space

31,020.21m

4,790.68m

2Completed

SRC/RC/S B2/13F

SRC B1/9F

A 7

Gotanda First Bldg.

2

Structure/Floors
Completed

September 1999

February 1988

A 8

Fukuoka Bldg.

Shinagawa Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,920 million
1,551.19m￥2,920 million

2

Total Floor Space

10,553.34m

1,302.17m

2

Total Floor Space

11,627.74m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B2/11F

14

October 1984

Acquisition Price

Structure/Floors

SRC B1/9F

MS Shibaura Bldg.

Chiyoda Ward, Tokyo

Total Floor Space

657.80m2

2

Total Floor Space

679.06m

2

2

Total Floor Space

July 1989

2

SRC B2/10F
May 1990

A 9

JPR Ichigaya Bldg.

A 10

Oval Court Ohsaki Mark West

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥5,100 million
1,058.04m￥3,500 million
4,006.00m

2

2

Total Floor Space

Total Floor Space

28,575.80m

5,888.82m

22Structure/Floors
Completed

Structure/Floors

SRC B1/9F

Completed

March 1989

A 11

Shinjuku Square Tower

S/SRC B2/17F
June 2001

A 12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price￥10,180 million

Site Area

Acquisition Price￥11,821 million

8,409.52m

2Site Area(entire redevelopment project)

Total Floor Space

3,522.46m

2

Total Floor Space

78,796.00m

2

25,733.10m(entire redevelopment project)

Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B4/30F

SRC B2/14F
April 1985

October 1994

A 13

Across Shinkawa Bldg. Annex

A 14

Shinjuku Center Bldg.

Chuo Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥710 million
858.48m￥21,000 million
14,917.11m

2

Total Floor Space

5,535.90m

2

Total Floor Space

176,607.89m

22Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/10F

SRC/RC/S B5/54F

June 1994

A 15

Minami Azabu Building

October 1979

A 16

Shinagawa Canal Building

Minato Ward, Tokyo

Minato Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥3,760 million
778.09m￥1,870 million

2

Total Floor Space

4,570.63m

CompletedS

9F

June 1992

828.82m

2

Total Floor Space

5,216.21m

2Structure/Floors

22Structure/Floors
Completed

S

B1/8F
July 2008

15

A 17

Rokubancho Building

Chiyoda Ward, Tokyo

Shibuya Ward, Tokyo

Acquisition Price
Site Area

A 18

Ryoshin Harajuku Building

Acquisition Price￥2,800 million￥8,400 million

Site Area

716.95m

1,205.07m

2

Total Floor Space2

Total Floor Space

4,205.09m

6,466.94m

2Structure/Floors
Completed

2

Structure/Floors

SRC B3/7F

Completed

October 1991

JPR Shibuya Tower Records Bldg.

A(Retail)1

March 1989A

JPR Daikanyama (Retail)Shibuya Ward, Tokyo

Acquisition Price￥12,000 million

Site Area

1,010.47m￥2,160 million
277.12m2

2

Total Floor Space

Total Floor Space

8,449.56m

2Structure/Floors

SRC/S B3/8F

RC B2/2F

Completed

July 2002

February 1992A

JPR Jingumae 432 (Retail)668.09m

2

Structure/Floors
Completed2

Shibuya Ward, Tokyo

Acquisition Price
Site Area

SRC B1/9F

3

A 4

Shinjuku Sanchome East Bldg. (Retail)Shinjuku Ward, Tokyo

Shibuya Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥4,275 million
198.10m￥2,740 million

Total Floor Space

Total Floor Space

2,578.69m

2

2

24,617.65m

2

1,066.81m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC/RC B3/14F

S/SRC B1/7F

January 2007

February 2006

Does not include area transferred to Tokyo Metropolitan Government

Yurakucho Ekimae Building

A 5(Yurakucho Itocia)(Retail)Chiyoda Ward, Tokyo￥3,400 million
6,808.12m

2

Total Floor Space

71,957.65m

2Structure/Floors
Completed

16

S/SRS

1

Sumida Ward, Tokyo

Acquisition Price
Site Area

B

Arca East

B4/20F

October 2007

Acquisition Price
Site Area￥5,880 million
3,755.01m

2

Total Floor Space

34,281.86m

2Structure/Floors
Completed

S/SRC B3/19F
March 1997

B

JPR Chiba Bldg.

B

JPR Yokohama Nihon Odori Bldg.

2

Chiba City, Chiba

Yokohama City, Kanagawa

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,350 million
1,382.35m

Total Floor Space

9,072.57m

2

2￥2,927 million
1,100.59m

2

Total Floor Space

9,146.52m

Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B1/13F
January 1991

B

Shinyokohama 2nd Center Bldg.

5

October 1989

B 6

Kawaguchi City, Saitama

Acquisition Price

Acquisition Price￥920 million
841.71m

2

Total Floor Space

7,781.93m

2Site Area￥8,100 million
4,524.61m

2

Total Floor Space

28,420.85m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/12F
August 1991

B

JPR Ueno East Bldg.

S/SRC B2/15F

February 1994

B

Tachikawa Business Center Bldg.

7

8

Tachikawa City, Tokyo

Taito Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥3,250 million
1,242.97m￥3,188 million
2,047.22m

2

2

Total Floor Space

8,490.44m

Total Floor Space

14,706.36m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B1/8F

October 1992

2

S/SRC B1/12F

December 1994

Yume-ooka Office Tower

B 9

Rise Arena Bldg.

2

SRC B1/11F

Kawaguchi Center Bldg.

Yokohama City, Kanagawa

Site Area3

B 10

Yokohama City, Kanagawa

Toshima Ward, Tokyo

Acquisition Price
Acquisition Price￥5,831 million

Site Area

9,377.28m

91,280.94m（including residential tower)

RC/SRC/S B3/42F
January 2007

12,011.00m

2Total Floor Space

185,974.87m

22Structure/Floors
Completed￥6,510 million

2（entire redevelopment project)

Total Floor Space

Site Area

Structure/Floors

S/SRC/RC B3/27F

Completed

March 1997

The commercial tower portion has 2 basement floors and 15 floors
above ground.

17

B 11

Olinas Tower

Sumida Ward, Tokyo￥31,300 million
27,335.29m

2

Total Floor Space

1

Nishitokyo City, Tokyo

Acquisition Price
Site Area

B

Tanashi ASTA (Retail)257,842.41m

2Acquisition Price￥10,200 million

Site Area

12,326.30m

2

Total Floor Space

80,675.27m

Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC/S B2/45F
February 2006

2

SRC B2/17F

February 1995

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

Cupo-la Main Bldg. (Retail)B 3

Kawaguchi City, Saitama￥2,100 million

Acquisition Price

15,008.28m

2Site Area￥7,260 million
4,761.62m

2（entire redevelopment project)

Total Floor Space

Total Floor Space

48,321.96m

18,394.32m

2Structure/Floors

Structure/Floors

Completed

Completed

January 2006

B

(Retail)March 1983

Kawasaki Dice Bldg. (Retail)5

Saitama City, Saitama

B

Acquisition Price

Site Area

Site Area￥4,335 million
8,317.99m￥15,080 million

Completed

28,930.36m

2￥2,140 million
2,706.99m

2

Total Floor Space

19,950.42m

2Structure/Floors

18

August 2003

4

Osaka City, Osaka

Acquisition Price

Completed2

Tokyo Tatemono Honmachi Bldg. C

1

Niigata City, Niigata

Site Area

36,902.01m

S/SRC/RC B2/11F

Completed

October 2005

C

Total Floor Space
Structure/Floors

S B1/4F

Niigata Ekinan Center Bldg.

4,475.45m

22Structure/Floors

6

Kawasaki City, Kanagawa

Acquisition Price

Total Floor Space2

SRC/RC/S B1/6F

S/RC/SRC B2/10F

Musashiurawa Shopping Square

4

Kawasaki City, Kanagawa

Acquisition Price
Site AreaB

JPR Musashikosugi Bldg. (Retail)

S/SRC B1/10F
March 1996

Acquisition Price
Site Area￥4,150 million
1,432.64m

2

Total Floor Space

14,619.52m

Structure/Floors
Completed

2

SRC B3/9F

February 1970

C

JPR Hakata Bldg.

7

C

JPR Naha Bldg.

Fukuoka City, Fukuoka

Naha City, Okinawa

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,900 million
1,214.63m￥1,560 million

Total Floor Space

5,780.71m

9,828.73m

2Structure/Floors

Structure/Floors

Completed

Completed

S/RC B1/12F
June 1985

C 12

Sompo Japan Sendai Bldg.

October 1991

C 13

Wakayama City, Wakayama

Acquisition Price

Acquisition Price

Site Area

Site Area￥3,150 million
1,895.67m

2

Total Floor Space

￥1,670 million
1,128.45m

2

Total Floor Space

10,783.52m

6,715.07m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC B1/12F

December 1997

C 14

C 17

Acquisition Price￥2,810 million
1,164.39m

28,690.95m

Structure/Floors

2￥2,140 million

5,696.01m

2

Fukuoka City, Fukuoka

October 1993

C 19
Nagoya City, Aichi

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,920 million
680.63m￥4,137 million

2

Total Floor Space

3,874.81m

Completed

SRC 8F

February 1993

1,610.38m

2

Total Floor Space

10,201.44m

2Structure/Floors

SRC B2/9F

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

C 18668.11m

2

Total Floor Space

Completed

July 2000

JPR Hakata-Chuo Bldg.

Site Area

Structure/Floors

S/SRC 13F

Completed

July 1996

Osaka City, Osaka

Acquisition Price

Total Floor Space

2

S 9F

JPR Dojima Bldg.

Fukuoka City, Fukuoka

Site Area

2

SRC/S 12F

Sompo Japan Wakayama Bldg.

Sendai City, Miyagi

Tenjin 121 Bldg.

959.87m

2

2

Total Floor Space

9

Structure/Floors
Completed

2

SRC B1/9F

March 1991

19

C

JPR Umeda Loft Bldg. (Retail)1

Benetton Shinsaibashi Bldg. (Retail) C

Osaka City, Osaka

Osaka City, Osaka
Acquisition Price￥13,000 million

Site Area

3,518.68m

2

Total Floor Space

17,897.56m

Structure/Floors
Completed

2

SRC B1/8F

April 1990

C

Housing Design Center Kobe (Retail)4

Acquisition Price
Site Area￥5,430 million
609.31m

2

Total Floor Space

5,303.98m

Structure/Floors
Completed2

S B2/10F

February 2003C

JPR Chayamachi Bldg. (Retail)

Kobe City, Hyogo

5

Osaka City, Osaka

Acquisition Price

Acquisition Price

Site Area

Site Area￥7,220 million
3,994.47m￥6,000 million
592.45m

2

Total Floor Space

33,877.71m

2

Total Floor Space

3,219.36m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/S B2/11F

20

3

June 1994

2

S/SRC 9F
June 1994

Characteristics and Corporate History
The Objective and Basic Characteristics of JPR
The fundamental investment policy of JPR consists of our investment strategy based on the basic concept of"investing in urban commercial real estate." JPR's investment targets are primarily comprised of superior
office buildings (urban work facilities), retail properties located in thriving commercial areas, the land on
which they are located and asset-backed securities that have such real estate as their primary investment.
JPR makes investments in properties in which we are convinced that the benefits of portfolio management
can be demonstrated after carefully considering the risks and returns of the investment. JPR also diversifies
its investment geographically by not limiting itself to Tokyo but by also considering assets in other major
cities.

Corporate History
Date

Description

September 6, 2001

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the Investment
Corporation under the Investment Trust Law

September 14, 2001

Japan Prime Realty Investment Corporation was established

November 16, 2001

Started asset management (acquisition of 13 real estate in trust with underlying trust assets of 11
office buildings and 2 commercial properties; ￥40,730 million in total value)

January 22, 2002

Investment unit split (2.5 units for 1 existing unit)

June 14, 2002

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

21

Members of the Board (As of June 30, 2010)

Executive Officer

Hirohito Kaneko
Dec. 2001
Apr. 1979
Apr. 1977

Executive Officer, Japan Prime Realty Investment Corporation
Representative Counsel, Hirohito Kaneko Law Office (currently held position)
Bar admission (Tokyo Bar Association), Shigeru Yamada Law Office

Supervising Officer

Sosuke Yasuda
Jan. 2009
Apr. 2008
Jan. 2008
Oct. 2006
Jun. 2006
Jun. 2005
Sep. 2001
Oct. 1999
Jul. 1993
Feb. 1983
Jun. 1980
Dec. 1975
Apr. 1968

Group Representative Partner, Gyosei & Co. (currently held position)
CPA and Director, Gyosei Audit Corporation (currently held position)
Outside Auditor, Mitsui Sumitomo Insurance Group Holdings, Inc. (currently held position)
Group Representative Partner, Gyosei Audit Corporation (Tokyo Hokuto & Co. merged with Serizawa
Accounting Firm)
CPA and Director, Gyosei Audit Corporation
Outside Auditor, Nomura Research Institute, Ltd. (currently held position)
Outside Auditor, Mitsui Sumitomo Insurance Company, Limited (currently held position)
Supervising Officer, Japan Prime Realty Investment Corporation
Director and Senior Partner, Tokyo Hokuto & Co. (Tokyo Akasaka Audit Co. merged with Hokuto
Audit Co. ) (currently held position)
Senior Partner, Tokyo Akasaka Audit Co.
Representative, Tokyo Akasaka CPA Joint Office
Sosuke Yasuda Tax Accountant Office (currently held position)
Masamitsu Serizawa Accounting Firm
Main Store, KK Ohgiya

Supervising Officer

Masato Denawa
Apr. 2009
Sep. 2007
Jul. 2007
Feb. 2005
Jul. 2003
Apr. 2002
Jun. 2000
Jan. 1999
Apr. 1991
Apr. 1990

22

Adjunct proffessor (part-time) at Keio Law School (currently held position)
Supervising Officer of Japan Prime Realty Investment Corporation
Director of Advicelink Co., Ltd. (currently held position)
Part-time auditor of Ulvex Inc. (currently held position)
Partner attorney at Spring Partners (former Okinobu, Ishihara & Sei Law Office) (currently held position)
Adjunct professor (part-time) at Keio University Faculty of Law (Civil law practice)Part-time auditor of Kinkan Co., Ltd. (currently held position)
Partner of Okinobu, Ishihara & Sei Law Office
Okinobu, Ishihara & Sei Law Office (former Okinobu & Ishihara Law Office)Registered with Daiichi Tokyo Bar Association at Okinobu & Ishihara Law OfficeOverview of the Asset Manager
Corporate Profile
Name

Tokyo Realty Investment Management, Inc. (TRIM)

Core Business

Asset management for investment corporation

Capitalization

350 million yen

Shareholders

Tokyo Tatemono Co., Ltd. (40%)
Taisei Corporation (20%)
Yasuda Real Estate Co., Ltd. (20%)
Meiji Yasuda Life Insurance Company (10%)
Sompo Japan Insurance Inc. (10%)

History

April 28, 2000:

Founded

October 13, 2000:

Approved for real estate transaction service

March 16, 2001:

Approved as discretionary transaction agent

June 20, 2001:

Approved for asset management of investment corporation

September 30, 2007:

Registered as investment management business

November 28, 2007:

Applying for and submitting application form regarding Financial
Instruments and Exchange Law (investment management business)(1) Asset management for JPR (including all decision-making in connection with the acquisition/dispositionor leasing of properties and acting as an agent or broker of such transactions based on relevant
evaluation and judgement)(2) Funding by JPR(3) Reporting to JPR(4) Any other services related to or affiliated with the above

Services

Organization

Shareholders Meeting
Auditors
Board of Directors
CEO

Investment Committee

Compliance Committee(Invest Subcommittee/ Fund Management Subcommittee )(Compliance Subcommittee )Compliance Office

Investment Management
Division

ResearchGroup

Investment
Group

Asset
Management
Group

Financial Division

FinancialGroup

Investor
RelationsGroup

Corporate Plannig /Administration Division

FundManagement
Group

Corporate
Planning
Group

Accounting /HumanResourcesGroup

TRIM's Decision-Making Process of Investment Management

TRIM established the Investment Committee to make investment management decisions with Investment Subcommittee(including the Due Diligence Subcommittee) and Fund Management Subcommittee below it. Members of these Committees
and Subcommittees include the CEO, CIO, CFO and CAO. However, regarding the Due Diligence Subcommittee, aCompliance Office General Manager is also included to enhance compliance when conducting due diligence for the targeted
investment asset.
The Board of Directors is responsible for the targeted investment assets and policies. The Investment Committee formulates
management plans, while the Investment Subcommittee is in charge of decisions on issues regarding the acquisition anddisposition of individual assets. The Fund Management Subcommittee is responsible for issues regarding the managementof individual assets.
Procedures for decision-making by the Investment Subcommittee entails following secure procedures that require two
steps: a policy decision concerning acquisition or disposition and a final decision on acquisition or disposition. In addition,
in regard to the acquisition of an individual asset, a Due Diligence Subcommittee meeting will be held after the acquisition
policy is decided to enhance the screening of the details of due diligence. Furthermore, the Board of Directors is given
final decision-making power on the acquisition and disposition of individual assets greater than a certain value.
Meanwhile, decisions and legal procedures by each committee are screened to confirm that they do not violate laws,
regulations, JPR’s Articles of Incorporation, internal rules, etc. at the Compliance Subcommittee just before Committee
meetings are held. The Compliance Office General Manager reports on the presence or absence of violations of laws orrules before the screening at each Committee and, in addition, instructs each manager to decide at or report to the TRIM’s
Board of Directors or JPR’s Board of Directors in compliance with the rules, etc.

23

Directors of Tokyo Realty Investment Management, Inc.
President and Chief Executive Office (CEO)Satoshi Okubo

Jun. 2010 Appointed as President and CEO, Tokyo Realty Investment Management, Inc.
Mar. 2010 Appointed as Advisor, Tokyo Tatemono Co., Ltd.
Mar. 2010 Appointed as Auditor (part time), Tokyo Tatemono Real Estate Sales Co., Ltd.
Oct. 2005 Appointed as Director and Head of Kansai Branch Office
Mar. 2005 Appointed as Director and Head of Osaka Branch Office
Oct. 1998 Appointed as General Manager, Residential Management Dept.
Jan. 1996 Appointed as Group Leader, Second Leasing Group, Second Building Leasing Dept.
Apr. 1995 Appointed as Manager, Management Planning Office, Corporate Planning Division
Apr. 1994 Appointed as Manager, Corporate Planning Division and Manager, International Planning Office, Corporate Planning Division
Apr. 1992 Appointed as Manager, Corporate Communications Office and Manager, Corporate Planning Division
Apr. 1977 Joined Tokyo Tatemono Co., Ltd.

Director and Chief Administrative Officer (CAO)

Kazuo Kitami

Oct. 2004 Appointed as Director and Chief Administrative Officer, Tokyo Realty Investment Management, Inc.
Oct. 2004 Dispatched to Tokyo Realty Investment Management, Inc.
Jan. 2004 Appointed as member of the council in charge of Affiliated Companies Department, Meiji Yasuda Life Insurance Company
Apr. 2003 Appointed as Manager, Loan Management of the Management and Administration Division
Aug. 2000 Appointed as Manager, Loan General Affairs of the Management and Administration Division
Apr. 1997 Appointed as Manager, Credit Assessment Dept. 2 of the Management and Administration Division
Apr. 1995 Appointed as Manager of Real Estate Development Department of the Real Estate DivisionSep. 1989 Appointed as Manager of Real Estate Development Dept. of the Real Estate Division
Apr. 1975 Joined Yasuda Mutual Life Insurance Company (currently Meiji Yasuda Life Insurance Company) and assigned to Training
Institute of the Education Division

Director and Chief Investment Officer (CIO)

Seiji Miwa

Mar. 2006 Appointed as Director and Chief Investment Officer, Tokyo Realty Investment Management, Inc.
Oct. 2004 Appointed as General Manager of Investment Management Division (responsible for Asset Management Group)
Jul. 2003 Dispatched to Tokyo Realty Investment Management, Inc.
Jan. 2000 Appointed as Group Leader of Investment Services Department, Tokyo Tatemono Co., Ltd.
Jul. 1998 Appointed as Manager, Investment Services Department
Apr. 1998 Appointed as Manager, Yokohama Development Department
Apr. 1995 Appointed as Assistant Manager of Yokohama Development Department
Apr. 1991 Appointed Assistant Manager of Development Department 1
Apr. 1989 Assigned to Development Department 1
Apr. 1983 Joined Tokyo Tatemono Co., Ltd. and assigned to Design Department
Director and Chief Financial Officer (CFO)

Katsuhito Ozawa

Jul. 2009 Appointed as Director and Chief Financial Officer, Tokyo Realty Investment Management, Inc.
Jul. 2009 Dispatched to Tokyo Realty Investment Management, Inc.
Nov. 2007 Appointed as Representative Director of Kachidoki GROWTH TOWN Co., Ltd.
Mar. 2007 Appointed as General Manager of Residential Management Division, Tokyo Tatemono Co., Ltd.
Oct. 2004 Appointed as General Manager of Financial Division (responsible for Financial Group and Investor Relations Group)
Apr. 2002 Dispatched to Tokyo Realty Investment Management, Inc.
Apr. 2001 Appointed as Manager of Investment Services Department
Apr. 1987 Joined Tokyo Tatemono Co., Ltd.
Director and Compliance Officer

Shigeyuki Sugawara

Jun. 2010 Appointed as Director and Compliance Officer, Tokyo Realty Investment Management, Inc.
Apr. 2008 Appointed as Compliance Officer, Tokyo Realty Investment Management, Inc.
Jul. 2005 Appointed as Corporate Planning/Administration Division Manager (responsible for Planning Group/Compliance Group)
Oct. 2004 Appointed as Corporate Planning/Administration Division Manager (responsible for Compliance Group)Jan. 2001 Seconded to Tokyo Realty Investment Management, Inc. (joined Tokyo Realty Investment Management, Inc. in October 2002)
Apr. 1999 Appointed as Manager, Real Estate Section, Real Estate Division, Asahi Jitsugyo Co., Ltd. (seconded from Asahi MutualLife Insurance Company)

Apr. 1998 Appointed as Deputy Manager, Real Estate Business Office, Real Estate Division
Apr. 1985 Joined Asahi Mutual Life Insurance Company

24

Overview of Asset Management(1) Operational Performance of JPR

Unit

Operating Revenues
Real estate rental revenues

Million yen

13th
14th
15th
Fiscal Period Fiscal Period Fiscal Period(Jan. 1, 2008 - (July 1, 2008 - (Jan. 1, 2009 June 30, 2008) Dec. 31, 2008)
June 30, 2009)
10,83011,171

14,33011,493

12,314

10,83011,171

11,03011,493

11,855Gain on sale of real estate

3,300

Operating Expenses
Operating
Performance

Real estate rental expenses
Loss on sale of real estate

Million yen

5,689

7,762

5,665

5,830

4,909

5,022

4,961

5,010

5,144

4

2,154
38

Operating Profits

Million yen

5,280

5,482

6,568

5,827

6,484

Recurring Profits

Million yen

4,452

4,433

5,572

4,333

4,964

Net Income

Million yen

4,451

4,432

2,331

4,332

4,963

Total Assets

Million yen

303,459309,253

329,163

332,380

358,339(% Change)(+8.8)(+1.9)(+6.4)(+1.0)(+7.8)

Interest-bearing Debt

Million yen

123,475

129,255

150,230

150,872

161,262

Total Unitholders' Equity

Million yen

161,177

161,158

159,057

161,058

176,303(+0.2)(- 0.0)(-1.3)(+1.3)(+9.5)(% Change)

Cash
Distribution
per Unit, etc.

459

5,550

Loss on sale of investment securities

Assets, etc.

16th
17th
Fiscal Period Fiscal Period(July 1, 2009 - (Jan. 1, 2010 Dec. 31, 2009)
June 30, 2010)%%

Unitholders' CapitalMillion yen

156,725

156,725

156,725

156,725

171,339

Total Cash Distributions

4,840

Million yen

4,451

4,432

2,331

4,333

Dividend payment ratio

%

100.0

99.9

99.9

100.0

97.5

Number of Units Outstanding

Units

625,000

625,000

625,000

625,000

715,000

Total Unitholders' Equity per Unit

Yen

257,883

257,853

254,492

257,693

246,578

7,122

7,092

3,731

6,933

6,770

7,122

7,092

3,731

6,993

6,770

1.5

1.4

1.7

1.3

1.4

3.1

2.9

3.5

2.6

2.9

2.8

2.8

1.5

2.7

2.9

5.5

5.5

2.9

5.4

5.9

160,895

161,177

161,158

159,057

161,058

Cash Distribution per Unit
Distribution amount

Yen

Exceeding profit distribution amount

Recurring Profits on Total Assets (Note 1)
Annualized (Note 10)

Return on Total Unitholders' Equity (Note 2-1)
Annualized (Note 10)

Total unitholders' equity at beginning of
period (Note 2-2)
Unitholders' Equity Ratio at End of Period (Note 3)(Year-on-year increase/decrease)

Financial
IndicesInterest-Bearing Debt to Total Assets at End
of Period (Note 4)%%

Million yen%%

DSCR (Note 5)
Net income before interest
and amortization

Million yen

Interest paid (Notes 6)

NOI from Leasing (Note 7)
Annualized NOI yield (Notes 9 and 10)

NCF from Leasing (Note 8)
Annualized NCF yield (Notes 9 and 10)

Reference
Information

Million yen%
Million yen

53.1

52.1

48.3

48.5

49.2

(-4.6)(-1.0)(-3.8)(+0.1)(+0.7)

40.7

41.8

45.6

45.4

45.0

8.0

7.0

7.1

5.4

5.4

7,168

7,285

7,284

7,604

7,841

897

1,048

1,024

1,420

1,439

7,739

7,948

7,864

8,332

8,607

5.6

5.5

5.1

5.3

5.2

6,917

7,346

7,109

7,657

8,383
5.0

5.0

5.1

4.6

4.9

Properties Owned (Note 11)

50

52

51

53

55

Number of Tenants

537

499

476

476

460

%

Total Leasable Floor Space (Note 12)m2

383,491.03

383,215.57

393,532.31

400,751.87

410,326.04

Occupancy Rate

%

97.5

96.4

96.8

96.4

95.5

(Note 1) Recurring profit / (total assets at beginning of period + total assets at end of period) / 2(Notes 2-1 and 2-2) 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 debt / total assets at end of period x 100(Note 5) Net income before interest and amortization (excluding gain or loss on sale of real estate, loss on sales of investment securities and extraordinary loss) / interest paid
(Note 6) Interest paid in this table includes interest on corporate bonds(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing /purchase price of property (13th fiscal period: ￥275.10 billion, 14th fiscal period: ￥284.31 billion, 15th fiscal period: ￥311.91
billion, 16th fiscal period: ￥310.61 billion and 17th fiscal period: ￥335.98 billion)
Annualized NCF from leasing /purchase price of property(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 13th fiscal period: 182 days, 14th fiscal period: 184 days,
15th fiscal period: 181 days, 16th fiscal period: 184 days and 17th fiscal period:181 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East 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 are rounded to the first decimal point (except for the dividend payment ratio, which is rounded off to the first decimal point.)25

(2) 17th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under theInvestment Trusts and Investment Corporations Law (hereafter, the Investment Trusts Law), and was listedon the Tokyo Stock Exchange Real Estate Investment Trust Section (securities code: 8955) on June 14, 2002
with 289,600 outstanding investment units. JPR made its fourth additional public offering in February
2010, bringing the number of investment units issued and outstanding to 715,000 units. JPR has assigned
the asset management of its portfolio to Tokyo Realty Investment Management Inc., through which JPR aims
to maximize unitholder value by efficiently managing the portfolio of office buildings and retail properties.

2) Management Environment
With regards to the Japanese economy, corporate earnings has shown improvement and the trend of
decreasing capital expenditure is starting to bottom out due to the impact of increased exports towards
Asia and other factors against a backdrop of the economic growth of emerging countries. Furthermore,
there were visible signs of a recovery in consumer spending as a result of policies coming into effect andthe foundation for a self-sustained recovery looks as though it is being developed. However, employment
conditions are still harsh, and the risk that foreign economies will enter into a downtrend cannot beignored, such as issues concerning Greece. Thus, it seems as though the path towards economic recovery
will not be smooth and that it will require a certain amount of time.

The Office Building Leasing Market
The office market continues to be weak. However, in Tokyo, rent adjustments have progressed significantly
and rapidly. Due to this, there are signs that vacancy rates will bottom out. Furthermore, in regional cities,
in addition to the decrease in overall demand, market conditions are continuing to worsen in regions where
there are an excessive amount of new supplies when compared to market levels.

The Retail Property Leasing Market
Although there are signs that consumption is recovering, it still lacks dynamism, and in the retail industry,overall sales are continuing to decline. There are cases where rents of some stores in good locations ofmajor cities have been adjusted to a great degree and as a result, inquiries from tenants have once again
been arriving.

The For-Sale Real Estate Market
Fund procurement conditions are improving and the willingness to invest by buyers has been on therecovery. As a result, the environment is developing for the conclusion of transactions involving some bluechip properties that have cleared strict investment screening of buyers at a price level which is acceptable
to sellers. However, the screening criteria of buyers remain harsh and the transaction volume has not grown
to a great extent. Currently, only some players who have sufficient fund procurement capabilities haveresumed investment based on expectations that the market is hitting the bottom. However, going forward,
in the event that trends of a sustainable recovery of the economy and bottoming out of the leasing markets
become evident, the for-sale market is seen to turn to a recovery trend from a downward trend prior to therecovery of the leasing markets.

3) Portfolio Management Status
Asset Replacement
Based on the recent changes in market conditions, JPR has been focusing on asset replacement byendeavoring to replace properties in the “local area/retail property” category with those in the “Tokyo/
office building” area, with a primary aim of stabilizing portfolio earnings while paying attention tobalancing diversification of the portfolio, both in terms of location and asset class.

26

During the 17th fiscal period, JPR acquired Tokyo Tatemono Kyobashi Building (acquisition price:5.25 billion yen), TK Horidome Building (acquisition price: 5.1 billion yen) and, based on a forward
commitment, JPR Sendagaya Building (acquisition price: 15.05 billion yen). All of these properties are bluechip office buildings located in the Tokyo CBDs. Meanwhile, JPR sold the JPR Nagoya Sakae Building (saleprice: 4.937 billion yen), which is a regional property, as part of portfolio asset replacement. As a result, thebalance of assets under management now totals 55 properties, or 331.2 billion yen on an acquisition pricebasis, as of the end of June 2010. The total leasable floor space is now 410,326m2 and the number of tenants
is 460.

Operational Management of Portfolio
JPR is conducting management by working to improve the levels of the actual properties and services
through promptly responding to tenant needs through tenant satisfaction surveys that are implemented
regularly based on its brand strategy. Furthermore, given that severe leasing market conditions havecontinued, JPR placed the highest priority on maintaining occupancy rates while giving due consideration
to maintaining balance with rental revenue for attracting new tenants and negotiating rent conditions withexisting tenants. As a result, we successfully maintained a high occupancy rate of 95.5% (a period-on-period
decrease of 0.9%), despite being a slight decrease from the previous fiscal period.
Furthermore, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR from time
to time implements renovations in an aim to create spaces where the workers feel satisfied. During the 17th
fiscal period, JPR implemented renovations in the common areas of Yume-ooka Office Tower. Moreover, inorder to proactively provide environmentally-friendly office buildings, we have started activities to green
the walls near entrances, as well as other activities.

Fund Procurement
During the 17th fiscal period, JPR expanded its borrowing capacity and strengthen its financial ground by
procuring 14.61 billion yen through additionally issuing investment units. (For details, see “(3) Additional
Offerings, etc.” below.) Furthermore, in the expansion of our portfolio, we practiced dynamic borrowings.
JPR also worked to further increase financial stability through procurement of long-term fixed interest
funds by issuing unsecured corporate bonds and procuring borrowings, with an eye on avoiding futureinterest rate fluctuation risks and remaining attentive to the diversification of repayment and redemption
maturity dates.
As a result, the balance of total outstanding borrowings as of the end of the fiscal period was 110.76 billion
yen, with unsecured corporate bonds of 50.5 billion yen. With regards to JPR’s overall interest-bearing debt,
the average interest rate as of the end of the fiscal period (Note 1) was 1.9%, the interest-bearing debt ratio(Note 2) was 48.5% and the LTV (ratio of interest-bearing debt to total assets) at the end of the period (Note3) was 45.0%.
Of these, the non-current portion of long-term interest-bearing debt that is hedged against risk of interest
rate fluctuations now comprises 81.7% of all interest-bearing debt, and the average maturity (Note 4) is 4.1
years. The current portion of long-term interest-bearing debt is 24.49 billion yen.
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, 2010
Ratings Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

AA- (Stable)

Moody's Investor Services

A2 (Negative)

Standard & Poor's

Long-term: A (Stable)
Short-term: A-1(Note 1) Average interest is arrived at by calculating a weighted average of interest rates as of the end of the 17th fiscal period based on thebalance of each debt.
(Note 2) Interest-bearing debt ratio (%): interest-bearing debt/(interest-bearing debt + unitholders' capital) x 100 (unitholders' capital:
171.33 billion yen)
(Note 3) LTV at end of period (%): interest-bearing debt/total assets at end of period x 100 (total assets at the end of the 17th fiscal period:
358.33 billion yen)
(Note 4) Average maturity of long-term interest-bearing debt is arrived at by calculating a weighted average of maturities from the end of
the 17th fiscal period to the repayment deadlines for long-term interest-bearing debt with repayment periods of more than one
year, based on the balance of each debt.

27

(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. in the 17th fiscal period and prior to the 16th fiscal period.
Date

Number of Units Outstanding Unitholders' Capital (million yen)

Event

Balance

Variation

240

240

120

120

(Note 1)

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)September 14, 2001 Established by private placement

Balance

Remarks

Variation

JPR was formed by the investment of three companies -- Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), andTokyo Realty Investment Management, Inc. (40 units) -- at 500,000 yen per unit.
An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in realestate 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 debt, 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 debt, 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 debt, 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 debt, 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 debt, 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 debt, 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 debt, 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 debt, 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 debt, redeem
investment corporation bonds, acquire specific assets, etc.
(Note 1)
(Note 2)(4) Cash Distributions
With regards to cash distributions for the 17th fiscal period, the Special Measures on Taxation for Investment Corporations(Special Taxation Measures Law, Article 67-15), the Special Deduction from Income for Expropriated Land or Other
Property (Special Taxation Measures Law, Article 65-2) and the Special Measures in Case Land or Other Property is
Acquired in Advance in 2009 or 2010 (Special Taxation Measures Law, Article 66-2) have been applied to internally reservea certain amount of unappropriated retained earnings within the scope that no burden is borne on Unitholders due tothe additional levy of corporate tax, etc. Based on this policy, we will distribute the maximum allowable amount of thedividend distribution which does not exceed the amount obtained after deducting the aforementioned internal reserves
from the unappropriated retained earnings for the 17th fiscal period. As a result, the cash distribution per unit for the 17th
fiscal period was set at 6,770 yen.

(Thousands of yen unless otherwise indicated)

Date
Unappropriated Retained
Earnings at End of Period
Internal Reserves
Total Cash Distributions(cash distribution per unit)
Total Cash Distributions from Net Income(cash distribution from net income per unit)
Repayment of Paid-in Capital(repayment of paid-in capital per unit)

28

13th
Fiscal Period

14th
Fiscal Period

15th
Fiscal Period

16th
Fiscal Period

17th
Fiscal Period

4,451,575

4,432,832

2,332,243

4,333,229

4,963,970

325

332

368

104

123,420(as ofJune 30, 2008)(as ofDecember 31,
2008)(as ofJune 30, 2009)(as ofDecember 31,2009)(as ofJune 30, 2010)

4,451,250

4,432,500

2,331,875

4,333,125

4,840,550(7,122 yen)

(7,092 yen)

(3,731 yen)

(6,933 yen)

(6,770 yen)

4,451,250

4,432,500

2,331,875

4,333,125

4,840,550(7,122 yen)

(7,092 yen)

(3,731 yen)

(6,933 yen)

(6,770 yen)

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)(5) Future Management Policy and Vital Issues
Despite signs of recovery, uncertainty over the future still remains, and JPR will continue to be tested as to
how it can conduct management under this environment.
In regard to the office leasing market, it appears that the difficult conditions will continue for some time, as
the market is believed to show a tendency to lag behind economic cycles. As such, JPR finds it necessary tocarefully discern when and to what degree the leasing market will bottom out. We will need to minimize thedecrease in earnings by making even more careful judgments on management concerning such factors as abreakdown of demand trends by location, property size and specification, in addition to the trend in overall
demand, as well as a breakdown of new supply trends by city or region.
As for the for-sale real estate market, we must carefully discern how the competition between other players
change while endeavoring to collect information necessary for acquiring blue-chip properties. Moreover,the for-sale market not only depends largely on the fund procurement environment, but also tends tochange ahead of the leasing market, with the cycles of the changes recently becoming extremely short.
Accordingly, we will have to make decisive investment judgments without missing the timing.
Based on these conditions, JPR will proceed with management that exercises caution regarding the following
matters as we strive to maximize unitholder value while also taking note of economic and interest rate
trends.

1. Acquisition of New Properties
1. Acquisition of New Properties
For the present, JPR will focus its investment on Tokyo and office buildings, rather than on regional
cities and retail properties. Particularly, JPR will specifically target and work to acquire properties
with strong future potential and competitiveness. In considering properties, JPR will strive to acquire
properties under appropriate terms by negotiating prices based on detailed market studies andproperty appraisals.
JPR will continue to make investment decisions after a proactive collection of information throughsuch sources as sponsors of the asset management company, accurately grasping market trends andcarefully researching investment value, including the future potential of candidate properties.

2. Management of Portfolio
Given the continuation of the severe leasing environment, JPR will continue differentiating ourselvesfrom others through our brand strategy and strive to maintain and improve competitiveness of
portfolio properties.
Furthermore, JPR will also proactively work on making conversions to environmentally-friendly
buildings for which social demand is heightening and systematically implement renovations of air
conditioning systems aiming to create buildings with high environmental performance, and othermeasures currently being carried out based on the concept of “Save energy,” which is part of JPR’s
brand strategy. We plan on enhancing customer satisfaction together with measures such as
renovations of common areas and at the same time, plan on maintaining and increasing occupancy
rates upon pouring effort in attracting new tenants and preventing tenants from moving out.
In the future, JPR will need to prepare for complying with the revised Energy Conservation Act,
the Environmental Security Ordinance of the Tokyo Metropolitan Government and other laws andregulations, but for the near term, JPR will work to grasp the energy usage of each property andformulate energy reduction goals. We also plan to formulate medium- to long-term plans for each
property on the construction work necessary for saving energy.

29(6) Fund Procurement
JPR's fundamental policy for fund procurement calls for an efficient combination of long-term steadyfund procurement and short-term fund procurement that emphasizes dynamism. In line with this policy,
JPR will procure funds through unsecured and unguaranteed bank borrowings as well as the issuanceof corporate bonds. JPR will continue to focus on the diversification of fund procurement means andconsistently strive to diversify maturities.

(7) Information Disclosure
JPR has positioned the proactive voluntary disclosure of information as one of its key management policies
and will voluntarily disclose information believed to be essential to investment decisions concerning JPR,
along with the timely disclosure of items to the Tokyo Stock Exchange. JPR is proactively employing its
website (http://www.jpr-reit.co.jp/jpr_e) as a vital means for implementing voluntary disclosure and, JPR
has promptly disclosed performance information and has run videos on its primary properties using thissite. We are committed to further enriching our information disclosure activities.

(8) Important Facts Arising after the Settlement
There are no material subsequent events for this fiscal period.

< Reference Information >Property Acquisition

JPR has acquired the following property.

BYGS Shinjuku Bldg. (additional ownership)
Property Overview
Location:
Type of ownership

2-19-1, Shinjuku, Shinjuku-ku, Tokyo
Land: Ownership
Building: Ownership
Site area:
3,522.46m2
Total floor space:
25,733.10m2
Structure:
SRC
Floors:B2/14F
Completion date:
April 1985
Number of tenants
22
Total leasable floor space: 15,134.16m2
Total leased floor space: 14,120.60m2
Occupancy rate:
93.3%:

The number of tenants, total leasable floor space, total leased floor space and occupancy rate are figures as of July 31, 2010.

Acquisition Terms
Acquisition price:
Asset type:
Acquisition date:

3,300 million yen
Real estate
July 13, 2010

(Note) JPR owns 75% of the co-ownership of BYGS Shinjuku Bldg. and the acquisition of additional 25% co-ownership brings JPR to
hold the entire ownership.

30

Overview of the Investment Corporation(1) Unitholders' Capital

13th Fiscal Period
as ofJune 30, 2008

14th Fiscal Period
as ofDecember 31, 2008

15th Fiscal Period
as ofJune 30, 2009

16th Fiscal Period
as ofDecember 31, 200917th Fiscal Period
as ofJune 30, 2010

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total number of units issued
and outstanding

625,000

625,000

625,000

625,000

715,000

Unitholders' capital (millions of yen)

156,725

156,725

156,725

156,725

171,339

Total number of unitholders

14,921

14,535

14,57014,751

15,197

Total number of authorized units(2) Primary Investors
The following table shows the 10 largest investors according to the percentage of their owned investment units to the total
number of units outstanding as of the end of the 17th fiscal period.

Name

Number of
Owned Units

Address

Percentage
of Total Units
Outstanding (%)

Japan Trustee Services Bank, Ltd.

Chuo Ward, Tokyo

74,751

10.45

NCT Trust and Banking Corporation

Shinagawa Word, Tokyo

52,809

7.38

Trust & Custody Services Bank, Ltd.

Chuo Ward, Tokyo

41,216

5.76

Tokyo Tatemono Co., Ltd.

Chuo Ward, Tokyo

29,3004.09

Nomura Trust and Banking Co., Ltd.

Chiyoda Ward, Tokyo

28,211

3.94

Northern Trust Company (AVFC) AccountShingapore Clients (Standing proxy:
Hongkong and Shanghai Banking
Corporation Limited, Tokyo Branch)

London, UK(Chuo Ward, Tokyo)

27,324

3.82

The Master Trust Bank of Japan, Ltd.

Minato Ward, Tokyo

25,796

3.60

Kawasaki Gakuen

Kurashiki City, Okayama

25,0003.49

Meiji Yasuda Life Insurance Company

Chiyoda Ward, Tokyo

24,0003.35

AIG Star Life Insurance Co., Ltd.

Sumidaku Ward, Tokyo

13,1901.84

341,597

47.77

Total
(Note) Percentage of total units outstanding are rounded to the second decimal point.

31

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 17h fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 1)

Name
Hirohito Kaneko

Sosuke Yasuda

Total Directors'
NumberFee duringof Ownedthe 17th Fiscal PeriodUnits(thousands of yen)

Representative Counsel, Hirohito Kaneko Law OfficeGroup representative partner, Gyosei & Co.
CPA and Director, Gyosei Audit Corporation
Outside Auditor, Nomura Research Institute, Ltd.

Outside Auditor, MS&AD Insurance Group Holdings

Masato Denawa
Independent
Auditor (Note 2)

Other Current Assignments

2,400

4,200

Partner Attomey, Spring Partners

Ernst & Young
ShinNihon LLC

23,300(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 and fees regarding comfort letters for additional offering of new
investment units and for Eleventh and Twelveth Unsecured Corporate Bonds.

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
Trust Law. The decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following
comprehensive consideration of circumstances including audit quality, audit fee and other various conditions.

(4) Asset Manager, Asset Custodian and Administrative Agent

The asset manager, asset custodian and administrative agents of JPR at the end of the 17th fiscal period are as follows.
Outsoursing Category

Name

Asset management company

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.

Mizuho Trust & Banking Co., Ltd.
Administrative agent(administration concerning
corporate bonds)

Mizuho Securities Co., Ltd.
Mizuho Corporate Bank, Ltd.
Shinkin Securities Co., Ltd.
Merrill Lynch Japan Securities Co., Ltd.
Nomura Securities Co., Ltd.

32

Status of JPR's Assets under Management(1) JPR's Asset Structure
Asset TypeReal estate

Real estate in trust

Area

16th Fiscal Period(as of December 31, 2009)17th Fiscal Period(as of June 30, 2010)

Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Tokyo CBDs

52,692,941

15.9

73,147,819

20.4

Greater Tokyo

59,163,834

17.8

58,721,705

16.4

Other Cities

15,758,684

4.7

11,194,010

3.1

Tokyo CBDs

83,979,400

25.3

88,928,114

24.8

Greater Tokyo

46,164,649

13.9

45,701,609

12.8

Other Cities

45,330,954

13.6

45,111,605

12.6

8.8

35,534,811

29,289,567

Deposits and other assets(

Total assets

)

(

)

(

)

9.9
(

)

332,380,032

100.0

358,339,677

100.0(303,090,465)(91.2)(322,804,866)(90.1)(Note 1) Total assets owned are based on the amounts appropriated on the balance sheet as of the settlement date (book values after depreciation for real estate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.
(Note 3) Various survey expenses (3,819 thousand yen for the 16th fiscal period and 200 thousand yen for the 17th fiscal period) are appropriated in deposits and other assets
as construction in progress in this table.

(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 17th fiscal period.
Book Value(thousandsof yen)Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy
Rate (%)

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

Asset Class

Olinas Tower

31,056,302

23,987.40

23,987.40

100.0

9.6

OfficeShinjuku Center Bldg.

21,406,759

8,041.63

6,760.31

84.1

3.9

OfficeJPR Sendagaya Bldg.

15,402,742

6,177.74

4,542.58

73.5

1.9

OfficeKanematsu Bldg.

15,077,251

7,994.02

7,190.65

90.0

3.4

OfficeKawasaki Dice Bldg.

14,955,820

13,066.69

12,981.11

99.3

3.4

RetailJPR Umeda Loft Bldg.

12,673,944

18,586.97

18,586.97

100.0

3.6

RetailBYGS Shinjuku Bldg.

12,014,281

11,350.62

10,590.45

93.3

3.6

OfficeJPR Shibuya Tower Records Bldg.

11,683,672

8,076.85

8,076.85

100.0

3.2

RetailMS Shibaura Bldg.

11,036,094

14,470.72

14,240.39

98.4

4.5

OfficeOfficeProperty Name

Shinjuku Square Tower
Total

9,404,985

11,150.77

9,230.63

82.8

2.1

154,711,855

122,903.41

116,187.34

94.5

39.3

(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. and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a lease agreement has been executed where the rent paid by the tenant fluctuatesin accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate entered for this building are the figures concerning
the sub-lessee of the tenant.
(Note 3) Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees. The figure
includes portion additionally acquired in 14th fiscal period.
Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted areas of offices, shops and warehouses which the company rents and can subleaseto sub-lessees by 40.31465%, the rent allocation ratio of JPR. The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent
allocation ratio. Each figure has been rounded to the second decimal point.

33

(3) Acquired Properties

The overview of the real estate and beneficiary interest in real estate in which JPR invests are as follows.
Location

Asset

CategoryClass

Property Name

CBDs

RetailOfficeBeneficiary Interest

15,077,251

10,300,000

Beneficiary Interest

2,522,765

2,310,000

Chuo Ward, Tokyo

Beneficiary Interest

2,380,000(additional acquisition in 2nd fiscal period )(additional acquisition in 6th fiscal period)

Chiyoda Ward, Tokyo

Beneficiary Interest

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.

Chiyoda Ward, Tokyo

Beneficiary Interest

1,944,877
1,640,810
566,870
202,020
3,582,931

Minato Ward, Tokyo

Beneficiary Interest

11,036,094

14,800,000

Shinagawa Ward, Tokyo

Beneficiary Interest

2,731,575

2,850,000

Chuo Ward, Tokyo

Beneficiary Interest
Real Estate

1,787,060
1,148,707

3,240,000

Beneficiary Interest
Beneficiary Interest

5,357,543
3,264,868

RetailOfficeOther
Cities3,530,000

Chiyoda Ward, Tokyo
Shinagawa Ward, Tokyo
Shinjuku Ward, Tokyo

Beneficiary Interest
Real Estate

8,912,000

BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Building
Shinagawa Canal Building
Rokubancho Building
Ryoshin Harajuku Building
Tokyo Tatemono Kyobashi Bldg.
TK Horidome Bldg.
JPR Sendagaya Bldg.

9,224,061
180,923

Shinjuku Ward, Tokyo

Real Estate

12,014,281

9,930,000

Chuo Ward, Tokyo

Real Estate

643,876

863,000

Shinjuku Ward,Tokyo

Real Estate

21,406,759

13,100,000

Minato Ward, Tokyo

Real Estate

3,885,698

2,880,000

Minato Ward, Tokyo

Real Estate

1,863,742

1,620,000

Chiyoda Ward, Tokyo

Real Estate

2,912,099

3,020,000

Shibuya Ward, Tokyo

Beneficiary Interest

8,668,857

7,570,000

Chuo Ward, Tokyo

Real Estate

5,282,718

5,120,000

Chuo Ward, Tokyo

Beneficiary Interest

5,267,652

5,900,000

Shibuya Ward, Tokyo

Real Estate

15,402,742

10,900,000

JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432（Note 2）
Shinjuku Sanchome East Bldg.

Shibuya Ward, Tokyo

Beneficiary Interest

11,683,672

12,600,000

Shibuya Ward, Tokyo

Real Estate

2,214,147

1,310,000

Shibuya Ward,Tokyo

Beneficiary Interest

4,369,201

4,000,000

Shinjuku Ward, Tokyo

Real Estate

2,783,562

2,350,000

Yurakucho Ekimae Building (Yurakucho Itocia)

Chiyoda Ward, Tokyo

Real Estate

3,408,559

2,660,000

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

Sumida Ward, Tokyo

Beneficiary Interest

4,891,735

5,530,000

Chiba City, Chiba

Beneficiary Interest

2,481,103

1,550,000

Yokohama City, Kanagawa Beneficiary Interest

2,758,964

2,460,000

Yokohama City, Kanagawa Real Estate

4,970,000
4,320,000

875,441775,000

Kawaguchi City, Saitama

Beneficiary Interest

7,422,160

9,420,000

Taito Ward, Tokyo

Real Estate

3,170,888

4,920,000

Tachikawa City, Tokyo

Beneficiary Interest
Real Estate

804,225
2,239,277

3,190,000

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.

Toshima Ward, Tokyo

Real Estate

5,694,858

5,740,000

Yokohama City, Kanagawa Real Estate

6,366,471

5,550,000

Sumida Ward, Tokyo

Real Estate

31,056,302

31,500,000

Nishitokyo City, Tokyo

Beneficiary Interest

8,138,216

12,200,000

Kawaguchi City, Saitama

Real Estate

1,976,180

2,480,000

Kawasaki City, Kanagawa Real Estate

7,342,284

5,940,000

Saitama City, Saitama

Beneficiary Interest

4,249,383

3,890,000

Kawasaki City, Kanagawa Beneficiary Interest

14,955,820

14,664,000

Niigata Ekinan Center Bldg.

Niigata City, Niigata

Beneficiary Interest

1,744,485

2,090,000

Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.

Osaka City, Osaka

Beneficiary Interest

4,132,670

3,030,000

Fukuoka City, Fukuoka

Beneficiary Interest

3,334,828

2,940,000

Naha City, Okinawa

Beneficiary Interest

1,488,288

1,600,000

Sendai City, Miyagi

Beneficiary Interest

2,540,746

3,350,000

Wakayama City, Wakayama Beneficiary Interest

1,389,113

1,800,000

Fukuoka City, Fukuoka

Beneficiary Interest

2,424,024

2,460,000

Osaka City, Osaka

Beneficiary Interest

2,089,968

2,370,000

Fukuoka City, Fukuoka

Beneficiary Interest

1,825,468

1,820,000

Nagoya City, Aichi

Real Estate

4,265,623

2,510,000

Osaka City, Osaka

Beneficiary Interest

12,673,944

14,000,000

Osaka City, Osaka

Beneficiary Interest

5,380,958

4,630,000

Kobe City, Hyogo

Real Estate

6,928,386

6,550,000

Osaka City, Osaka

Beneficiary Interest

6,087,107

4,650,000

Total

322,804,866

308,134,000

Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Retail

3,090,000

JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower(additional acquisition in 11th fiscal period )Tokyo

Appraisal Value(as ofJune 30, 2010)(thousands of yen)

Chuo Ward, Tokyo

Tachikawa Business Center Bldg.

GreaterBook Value(as ofJune 30, 2010)(thousands of yen)

Chuo Ward, Tokyo(additional acquisition in 14th fiscal period )Tokyo

Asset Type

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

(additional acquisition in 7th fiscal period )OfficeLocation

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

(Note 1) The calculated 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."(Note 2) Book value and appraised value of JPR Jingumae 432 as of June 30, 2010 do not include portion of land transferred to Tokyo Metropolitan Government.

34

History of rental business for each of JPR's real estate and beneficiary interest in real estate investments
Location

Asset

CategoryClass

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

RetailRetailOfficeOther
Cities

4.0

7

90.0

387,836

3.3

98,353

0.9

1

100.0

90,5280.8

4106,5800.9

4103,625

0.9

82,26932,103
12,969119,388

0.7
0.3
0.1
1.0

100.0
94.1
100.0
100.0
100.0

77.34632,281
12,880125,365

0.7
0.3
0.1
1.1
4.6

5.1

8

98.4

539,8732

100.0

137,042

1.2

2

100.0

134,950

1.1

1

100.0
100.0

87,35638,973

0.8
0.3

1

100.0
100.0

87,35638,9730.7
0.3

JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower

7
3

82.8
100.0

162,667

1.4

7

81.0

153,3421.3

182,138

1.6

3

100.0

177,670

1.5

20

80.9
80.9

247,138
3,797

20

82.8
82.8

236,519
3,634

2.0
0.0

BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Building
Shinagawa Canal Building
Rokubancho Building
Ryoshin Harajuku Building
Tokyo Tatemono Kyobashi Bldg.
TK Horidome Bldg.
JPR Sendagaya Bldg.

2.2
0.0

22

94.1

466,698

4.1

22

93.3

444,060

3.7

3

84.0

44,792

0.4

4

100.0

41,721

0.4

19

85.1

510,410

4.4

20

84.1

476,668

4.0

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

4

100.0

1

100.0

8

100.0

266,2792100.0（Note 2）（Note 2）

6

88.1

95,817

0.8

3

73.5

151,257

1.3

JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432（Note 2）
Shinjuku Sanchome East Bldg.

1

100.0

345,576

3.0

1

100.0

345,576

2.9

4

100.0

41,822

0.4

4

100.0

41,566

0.4

5

100.0

88,581

0.8

5

100.0

94,861

0.8

1

100.0

78,306

0.7

1

100.0

78,3061

100.0（Note 2）（Note 2）

1

100.0

0.7
（Note 2）（Note 2）

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

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tanashi 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.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Nagoya Sakae Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Retail459,969100.0

580,532(additional acquisition in 11th fiscal period )

Tokyo

84.9

1

99.0

Tachikawa Business Center Bldg.

Greater

7

8

Yurakucho Ekimae Building (Yurakucho Itocia)

OfficeRentalNumber Occupancy% ofRevenues
ofRate (%) (thousands of yen) Total
Tenants8(additional acquisition in 14th fiscal period )

CBDs

% of
Total

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.

(additional acquisition in 7th fiscal period )Tokyo

Number Occupancy
ofRate (%)
Tenants

RentalRevenues(thousands of yen)

100.0
94.1
100.0
100.0
89.2

(additional acquisition in 2nd fiscal period )(additional acquisition in 6th fiscal period)

Office17th Fiscal Period (from Jan. 1, 2010
to June 30, 2010)

16th Fiscal Period (from July 1, 2009
to Dec. 30, 2009)

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

10

3

81.4

1

100.0

8

100.0

36,7550.3（Note 2）（Note 2）
9,843

0.1

10
9

52,8450.4（Note 2）（Note 2）
2.2

6

100.0

259,457

2.3

6

100.0

274,075

2.3

28

78.7

118,287

1.0

27

78.4

109,678

0.9

12

97.3

135,056

1.2

12

94.5

136,952

1.2

11

89.7

69,412

0.6

10

83.8

54,548

0.5

38

97.0

473,357

4.1

36

85.2

452,603

3.8

7

94.3

206,812

1.8

7

94.3

232,165

2.0

18

100.0
81.4

62,153
83,977

0.5
0.7

16

100.0
77.8

60,927
81,674

0.5
0.7

1

100.0

242,751

2.1

1

100.0

240,297

2.0

31

86.3

320,643

2.8

31

86.3

313,756

2.6

12

100.0

1,178,783

10.3

12

100.0

1,166,600

9.8

1

100.0

596,400

5.2

1

100.0

596,400

5.0

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

3

100.0

129,061

1.1

3

100.0

129,061

1.1

20

99.2

478,422

4.2

20

99.3

481,174

4.1

10

100.0

133,216

1.2

9

99.2

133,726

1.1

9

98.7

247,626

2.2

8

97.8

246,645

2.1

27

96.6

160,079

1.4

27

93.3

151,593

1.3

17

93.8

105,108

0.9

16

89.1

99,748

0.8

14

94.7

201,173

1.8

12

92.7

192,735

1.6

17

100.0

123,169

1.1

16

91.7

121,510

1.0

12

91.5

122,218

1.1

10

79.6

102,209

0.9

17

85.3

223,563

1.9

93,963

0.8

7

93.2

113,168

1.0

6

85.9

123,174

1.0

5

87.5

87,554

0.8

5

100.0

81,698

0.7

1

100.0

189,817

1.7

2

100.0

179,169

1.5

1

100.0

402,423

3.5

1

100.0

402,411

3.4

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

1

100.0

（Note 2）（Note 2）

7

100.0

141,970

1.2

7

100.0

138,050

1.2

96.4 11,493,470

100.0

460

95.5 11,855,159

100.0

476

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg. , 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 ofShinjuku Square Tower, Shinjuku Center Building, Rise Arena Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where therent paid by the tenants fluctuates in accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) The tenant to whom the entire portion owned by JPR is leased has not agreed to our disclosing rents and other information. Therefore, JPR does not disclose them as it falls undercases in which disclosure is impossible due to inevitable reasons.
(Note 3) JPR Nagoya Sakae Bldg. was sold on March 24, 2010.

35

(4) Status of Other Properties
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Acquired
Properties in P34.
There is no incorporation of main specific assets which are main investment targets of JPR other than listed on
P34 as of the end of 17th period.

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

Location

PurposeSchedule

Total Value

Payment
duringthe 17th
Fiscal Period

AmountAlready
Paid

22

22

Shinjuku Center Building

Shinjuku Ward,Tokyo

1st phase of renewal of
passenger elevator

Oct. 2008~
Nov. 2010110

JPR Chiba Bldg.

Chiba City,
Chiba

Replacement of sprinkler
systemAug. 2010~
Dec. 2010

62

JPR Ningyo-cho Bldg.

Chuo Ward,Tokyo

Replacement of air
conditioning units

Oct. 2010~
Dec. 2010

37

Tachikawa BusinessCenter Bldg.

Tachikawa City,Tokyo

Renewal of central
monitoring system

May 2010~
Dec. 201032

JPR Chiba Bldg.

Chiba City,
Chiba

Renewal of central
monitoring system

Sep. 2010~
Dec. 201031

Mitsubishi UFJ Lease &Finance Nagoya Head Office
Bldg.

Nagoya City,
Aichi

Replacement of 7th floor
common areas

Jul. 2010~
Sep. 201026

Mitsubishi UFJ Lease &Finance Nagoya Head Office
Bldg.

Nagoya City,
Aichi

Installation work of OA
floorsJul. 2010~
Sep. 201023(2) Capital Expenditures during the 17th Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during
the 17th period.
Among major capital expenditures, JPR conducted to enhance tenant satisfaction, as well as improvements tocommon-use areas and the 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 219 million yen(Note), which was appropriated as expenditures for repair and maintenance.

Property Name

Location

Purpose

PeriodConstruction Expenses(millions of yen)

Shinjuku Center Building

Shinjuku Ward,Tokyo

Replacement of fire-resistantmaterial within passenger
elevator shaft

Jun. 2009~
May 2010

17

Across Shinkawa Bldg.
Annex

Chuo Ward,Tokyo

Replacement of 8th and 9th
floor air conditioning units

Apr. 2010~
May 2010

15

Sompo Japan Sendai Bldg.

Sendai City,
MiyagiRenewal of main parts ofparking

May 2010~
May 2010

14

Other Properties

Repairs of common areas, installation of officeequipment floors, maintenance of parking, airconditioners, and disaster prevention facilities
Total

175

223

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

37

(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) such as depreciation in order to conduct large-scale repairs and maintenance work, based onlong-term repairs and maintenance plans for individual properties.

(Millions of yen)

Operation Period

13th Fiscal Period(Jan. 1, 2008 ~June 30, 2008)

14th Fiscal Period(July 1, 2008 ~Dec. 31, 2008)

15th Fiscal Period(Jan. 1, 2009 ~June 30, 2009)

16th Fiscal Period(July 1, 2009 ~Dec. 31, 2009)17th Fiscal Period(Jan. 1, 2010 ~June 30, 2010)

Balance of deposits at
end of previous period

737

796

768

783

731

Deposits during the period

604

697

555

391

238

Amounts used from
deposits during the period

545

725

540

443

112

Deposits carried forward
to the next period

796

768

783

731

857

Expenses and Liabilities(1) Details of Expenses Related to Management
Item(Thousands of yen)

16th Fiscal Period (July 1, 2009- Dec. 31, 200917th Fiscal Period (Jan. 1, 2010- June 30, 2010(a) Asset Management Fees (Note)

416,127

447,576

Fixed compensation

75,00075,000

Incentive-based compensation 1

207,113

218,995

Incentive-based compensation 2

134,014

153,580(b) Administrative Service and Custodian Fees

67,754

68,218(c) Directors' Fee

6,600

6,600

(d) Trust Fees

48,24448,489(e) Other Expenses

116,423

115,525

655,150

686,408

Total(Note) Aside from the amounts of the asset management fees entered above, a total 28,000 thousand yen for the 16th fiscal period and 63,500 thousand yen
for 17th fiscal period have been paid for asset management of the acquired properties and have been included in the book value of each property.

(2) Status of Borrowings

As of June 30, 2010 JPR has the following borrowings.
Category

Drawdown
Date

LenderBank of TokyoMitsubishi UFJ, Ltd.
(Note 9)Resona Bank,
Limited(Note 9)
Short-Term Mizuho Corporate
Borrowings Bank, Ltd.
(Note 9)38

Balance as of Balance as ofJune 30,
December 31,
2010
2009
(millions of yen)Jul. 3, 2009

4,000

Jul. 3, 2009

4,000

Mar. 30, 2010
Jul. 3, 2009

3,972

Average
Interest Rate(%) (Note 1)(Note 2)

Repayment
Date

1.120

Jul. 2, 2010

4,000

1.120
0.838

Jul. 2, 2010
Jul. 2, 2010

1,000

1.108

Jul. 2, 2010

(millions of yen)

Mitsubishi UFJ
Jul. 3, 2009
Trust and Banking
Corporation
Dec. 24, 2009
(Note 9)

2,280

1.120

Jul. 2, 2010

2,000

0.955

Jul. 2, 2010

Total

16,252

5,000

Repayment
MethodUse

Remarks

Principal
Unsecured/
lump sum(Note 3) Unguaranteed/
repayment on
Non-subordinatedmaturityDevelopment Bankof Japan Inc.
Mizuho Corporate
Bank, Ltd.

Mar. 31, 2009
Jun. 26, 2009
Feb. 5, 2008
Jun. 26, 2009

Bank of TokyoMar. 26, 2008
Mitsubishi UFJ, Ltd.
Jun. 26, 2009
Current
Portion of Sumitomo Mitsui
Banking Corporation Jun. 29, 2009
Long-term
Sep. 26, 2006
Borrowings Shinsei Bank, Ltd.
The Bank of
Sep. 26, 2006
Fukuoka, Ltd.
The Chugoku Bank,
Sep. 26, 2006Ltd.
The Hachijuni
Bank, Ltd.

50
200

Sep. 26, 2006

200

Total
Zenkyoren(The National
Mutual Insurance
Federation ofAgricultural
Cooperatives)
Mitsubishi UFJ Trustand Banking Corp.
The Bank ofFukuoka, Ltd.
The Chugoku
Bank, Ltd.
The Hachijuni
Bank, Ltd.

Nov. 24, 2005

(Note 4)3.190

(Note 5)(Note 5)

5,000

1.181

Feb. 4, 2011

Principal
lump sum
repayment
on maturity

200

2.449

(Note 6)(Note 6)
Principal
lump sum
repayment
on maturity

5,000

1.380

Mar. 26, 2011

166

166

2.390

(Note 7)

100

100

2.440

(Note 8)

3,000

3,000

1.356

Sep. 24, 2010

1,000

1,000

1.356

Sep. 24, 2010

1,000

1,000

1.356

Sep. 24, 2010

1,000

1,000

1.356

Sep. 24, 2010

4,783

2.050

Jun. 21, 2011

Meiji Yasuda Life
Insurance Company Jun. 21, 2002
6,716

21,499

5,000

5,000

1.453

Nov. 27, 2012

Mar. 26, 2008

2,000

2,000

1.725

Mar. 26, 2015

Aug. 29, 2006
Jun. 26, 2009

6,000
1,000

6,000
1,000

1.734
2.156

Aug. 29, 2011
Jun. 27, 2012

Apr. 11, 2007

2,000

2,000

1.676

Apr. 11, 2012

Apr. 11, 2007

2,000

2,000

1.676

Apr. 11, 2012

Dec. 26, 2006

1,000

1,000

1.642

Apr. 11, 2012

Dec. 26, 2006
Daido Life
Insurance Company Feb. 5, 2008

1,000

1,000

1.858

Dec. 27, 2013

1,000
1,000
1,000
2,000
2,000
2,000
2,000
1,000
5,000
5,700

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

Feb. 5, 2015

920
3,700

4,668
3,000
3,400
900
1,000
895
3,600

1.666
1.858
2.035
1.858
2.257
1.676
2.156
1.676
1.181
2.449
1.279
1.380
2.390
1.279
1.593
2.076
1.322
1.740
3.190

2,850

2,800

2.440

(Note 8)10,00010,0003.440

Sep. 6, 2019

3,000

1.376

Feb. 4, 2013

3,000

1.376

Feb. 4, 2013

1,000
2,000

1.376
1.281
2.050

Feb. 4, 2013
Nov. 27, 2013
Jun. 21, 2011

4,400
84,263

1.750

Mar. 28, 2013

Dec. 26, 2006
Taiyo Life
Insurance Company Jun. 4, 2008
Dec. 27, 2006
Sumitomo Life
Insurance Company Jun. 4, 2008
Apr. 11, 2007
Jun. 26, 2009
Apr. 11, 2007
The Iyo Bank, Ltd.
Feb. 5, 2008
Long-Term
Mizuho Corporate Jun. 26, 2009
Borrowings Bank, Ltd.
May 28, 2010
Mar. 26, 2008
Bank of TokyoJun. 26, 2009
Mitsubishi UFJ, Ltd.
May 28, 2010
Aug. 26, 2008
Aozora Bank, Ltd. Jul. 3, 2009
Mar 30, 2010
Development Bank Mar. 31, 2009of Japan Inc.
Jun. 26, 2009
Sumitomo Mitsui
Banking Corporation Jun. 29, 2009
American Family Life
Assurance Company Sep. 7, 2009of Columbus
Mizuho Trust &Feb. 4, 2010
Banking Co., Ltd.
The Shinkumi
Feb. 4, 2010Federation Bank
Feb. 4, 2010
ORIX Trust andBanking Corporation May. 28, 2010
Jun. 21, 2002
Meiji Yasuda Life
Insurance Company Mar. 28, 2003
Sompo Japan
Insurance Inc.

Total

5,000
4,751
3,400
900

4,783
4,400
83,404(Note 4)

1.740

50
200

5,600
3,000

(Note 7)(Note 8)

Unsecured/(Note 3) Unguaranteed/
NonsubordinatedPrincipal
lumpsum
repayment
on maturity
Secured/
Unguaranteed/
Non-subordinatedPrincipal
lumpsum
repaymentonmaturity

Dec. 27, 2013
Jun. 4, 2013
Dec. 27, 2013
Jun. 4, 2015
Apr. 11, 2012
Jun. 27, 2012
Apr. 11, 2012
Feb. 4, 2011
(Note 6)(Note 6)
Nov. 27, 2013 Principal
lump sum
repayment
Mar. 26, 2011 on maturity(Note 7)(Note 7)
Nov. 27, 2013
Principal
Aug. 26, 2011 lump sum
repayment
Jul. 3, 2012
on maturity
Sep. 30, 2013
(Note 4)(Note 4)(Note 5)(Note 5)(Note 3)

Unsecured/
Unguaranteed/
Nonsubordinated(Note 8)Principal
lump sum
repayment
on maturity

Secured/
Unguaranteed/
Non-subordinated(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal point. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 2) Short-term borrowings are floating-rate borrowings. Long-term borrowings are fixed-rate borrowings.
(Note 3) Funds are mainly used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses) , repaying borrowings andamortization of corporate bonds.
(Note 4) The borrowings are subject to repayment of 25 million yen on Jun. 27, 2009 and hereafter every 6 months. In addition, repayment of 820 million yen will be madeon the maturity date, Jun. 27, 2013.
(Note 5) The borrowings are subject to repayment of 100 million yen on Dec. 27, 2009 and hereafter every 6 months. In addition, repayment of 2,100 million yen will bemade on the maturity date, Jun. 27, 2019.
(Note 6) The borrowings are subject to repayment of 100 million yen on Dec. 25, 2009 and hereafter every 6 months. In addition, repayment of 5,100 million yen will bemade on the maturity date, Jun. 27, 2014.
(Note 7) The borrowings are subject to repayment of 83 million yen on Dec. 27, 2009 and hereafter every 6 months. In addition, repayment of 4,253 million yen will be madeon the maturity date, Jun. 27, 2014.
(Note 8) The borrowings are subject to repayment of 50 million yen on Dec. 25, 2009 and hereafter every 6 months. In addition, repayment of 2,550 million yen will be madeon the maturity date, Jun. 27, 2014.
(Note 9) JPR repaid, ahead of the maturity date, 1.6 billion yen on Feb. 24, 2010 and 2.4 billion yen on Mar. 18, 2010 of the 4 billion yen short-term borrowings from the Bankof Tokyo-Mitsubishi UFJ Bank, Ltd. undertaken on Jul. 3, 2009; JPR repaid, ahead of the maturity date, 1.6 billion yen on Feb. 24, 2010 and 2.4 billion yen on March
18, 2010 of the 4 billion yen short-term borrowings from Resona Bank, Limited undertaken on Jul. 3, 2009; JPR repaid, ahead of the maturity date, 1.5888 billion
yen on Feb. 24, 2010 and 1.3832 billion yen on Mar. 18, 2010 of the 3.972 billion yen of the short-term borrowings from Mizuho Corporate Bank, Ltd. undertaken
on Jul. 3, 2009; JPR repaid, ahead of the maturity date, 0.912 billion yen on Feb. 24, 2010 and 1.368 billion yen on Mar. 18, 2010 of the 2.28 billion yen short-termborrowings from Mitsubishi UFJ Trust and Banking Corporation undertaken on Jul. 3, 2009. JPR repaid, ahead of the maturity date, on Feb. 24, 2010 the 2 billion
yen short-term borrowings from Mitsubishi UFJ Trust and Banking Corporation undertaken on Dec. 24, 2009.

39

(3) Corporate Bonds

Details of corporate bonds outstanding as of June 30, 2010 are as follows.
Issue Date

Name

Balance as ofDecember 31, 2009
(millions of yen)

Balance as ofJune 30, 2010
(millions of yen)

Coupon Rate(per annum)

Maturity
Date

1.38

Feb. 12,2010

Second Series ofCorporate
Bonds

Feb. 12, 2004

7,000

Third Series ofCorporate
Bonds

Feb. 12, 2004

5,000

5,000

2.32

Feb. 12,2014

Fifth Series ofCorporate
Bonds

Nov. 4, 2004

5,000

5,000

1.44

Nov. 4,2011

Sixth Series ofCorporate
Bonds

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4,2014

Seventh Series ofCorporate
Bonds

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14,2026

Eighth Series ofCorporate
Bonds

July 23, 2007

9,000

9,000

1.85

July 23,
2012

Ninth Series ofCorporate
Bonds

July 23, 2007

6,000

6,000

2.10

July 23,
2014

Tenth Series ofCorporate
Bonds

May 30, 2008

3,000

3,000

1.71

May 30,2011

Eleventh Series ofCorporate
Bonds

Mar. 12, 2010

6,000

1.68

Mar. 12,2015

Twelfth Series ofCorporate
Bonds

May 21, 2010

7,000

1.27

May 21,
2015

Total

44,500

Redemption

Use

Purchase of

Remarks(Note 1)properties
andrepayment ofborrowings(Note 2)

Bulletpayment
Repayment ofborrowings(Note 3)Purchase ofproperties

50,500(Note 1) These are equipped with a same rank rider limited among corporate bonds, and with limitations on private placement among small number of investors and on resale among
qualified institutional investors.
(Note 2) These are equipped with a same rank rider limited among corporate bonds and limitations on resale among qualified institutional investors.
(Note 3) These are equipped with a same rank rider limited among certain corporate bonds.

Acquisition and Sale during the 17th Fiscal Period(1) Aqcuisition and Sale of Real Estate and Asset-Backed Securities
Acquisition
Type of Asset

Real Estate
Name

Acquired
Date

AcquisitionPrice(thousandsof yen)(Note)

Feb. 12,2010

5,250,000

Real EstateTokyo Tatemono
Kyobashi Building

Real Estate

JPR Nagoya Sakae
Building

BeneficiaryInterest in
Real Estate

TK Horidome
Building

Mar.
31,
2010

5,100,000

Real Estate

JPR Sendagaya
Building

May
31,
2010

15,050,000

Real Estate

A Portion of Landof JPR Jingumae
432

Total

Sale

Sale
Date

Sale
Sale Profit
Book
Difference (C)SalePrice (A)and Loss
Value (B)(A) - (B)Expenses (D)(thousands (thousands (thousands of (thousands(C) - (D)of yen)(thousandsof yen)yen)of yen)(Note)
of yen)Mar. 24,
4,937,296 4,434,630
2010

502,666

Jun. 1,
2010

196,088

105,561

5,238,946 4,630,718

608,227

25,400,000

301,650

148,578

354,087

105,561(Note 2)
148,578459,648(Note1) Values of "acquisition price" or "sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.
(Note 2) Regarding sale of a portion of land of JPR Jingumae 432, 3,840 thousand yen of compensation for building relocation is additionally allocated as revenue.

(2) Acquisition and Sale of Other Assets
There were no acquisitions or sales of other assets.

40

(3) Survey on Values of Specified Assets, etc.
Acquisition Price orSale Price (Note 1)(thousands of yen)

Survey Value ofSpecified Assets (Note 2)(thousands of yen)

Acquisition or Sale

Real Estate NameTransaction
Date

Acquisition

Tokyo Tatemono
Kyobashi Building

Feb. 12, 2010

5,250,000

5,250,000

Sale

JPR Nagoya Sakae
Building

Mar. 24, 2010

4,937,296

5,000,000

Acquisition

TK Horidome
Building

Mar. 31, 2010

5,100,000

6,080,000

Acquisition

JPR Sendagaya
Building

May 31, 2010

15,050,000

11,000,000

A Portion of Land of
JPR Jingumae 432

Jun. 1, 2010

301,650

300,640

Sale(Note 1) Values of "acquisition price or sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.
(Note 2) Surveys on the values of specified assets, etc. indicated above were conducted by Ernst & Young ShinNihon LLC at times of acquisition or sale of properties based on
the Report No. 23, "surveys on values of specified assets, etc. of investment trusts and investment corporations," issued by the Industry Audit Committee of the JapaneseInstitute of Certified Public Accountants. Furthermore, aside from the value surveys shown above, JPR has received survey reports on locations, addresses and other items
needed for identifying relevant real estate, etc.

(4) Transactions with Interested Parties and Major Shareholders
A.Transaction Status(Thousands of yen)Transaction Price, etc.

Category

Acquisition Price, etc.

Sale Price, etc.

￥25,400,000￥5,238,946

Of which, acquisition pricefrom interested parties, etc.

Of which, sale priceto interested parties, etc.

￥20,300,000 (79.9%)(-%)

Tokyo Tatemono Co., Ltd.

5,250,000(25.9%)(-%)

Sendagaya Kaihatsu Tokutei
Mokuteki Kaisha

15,050,000(74.1%)(-%)

20,300,000(100.0%)(-%)

Total Amount

Breakdown of Transactions with Interested Parties, etc.

Total

B.Value of Fee Expenses
Category

Property Brokerage Fee(Thousands of yen)
Breakdown of Transactions with Interested Parties
Total Paid Fees(A)
572,138

Management Fees
(Note 2)

225,698

Outsourcing Fees

497,216

Tenant Brokerage Fees,
etc.

11,737

Paid Party

Paid Amount(B)

Ratio toTotal
Amount(B/A)(% of total)

Tokyo Tatemono Real Estate Sales Co., Ltd.

270,900

47.3

Tokyo Tatemono Co., Ltd.

189,208

83.8

Yasuda Real Estate Co., Ltd.

8,891

3.9

Yuraku Real Estate Co., Ltd.

3,361

1.5

Tokyo Tatemono Co., Ltd.

398,304

80.1

Yasuda Real Estate Co., Ltd.

22,548

4.5

Tokyo Tatemono Co., Ltd.

1,540

13.1

207

1.8

Tokyo Tatemono Real Estate Sales Co.,Ltd.

(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreement with JPR and isregulated as designated in Article 123 of the Enforcement Order of the Investment Trusts and Investment Corporations Law and article 26-27 of the regulation on management
reports in regard to investment trusts and investment corporations of The Investment Trusts Association, and the major shareholders of the asset management company
regulated defined in Article 29-4-2 of the Financial Instruments and Exchange Law.
(Note 2) The management fees indicated in the above table include construction management fees (total of 6,550 thousand yen for JPR) appropriated as assets and nothandled as expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties during the 17th fiscal period.
Tokyo Tatemono Co., Ltd.
Yasuda Real Estate Co., Ltd.
Taisei Corporation
Shinjuku Center Building Management Co., Ltd.

269,809 thousand yen
10,400 thousand yen
195 thousand yen
87,838 thousand yen

41

(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
the class 1 financial instruments transaction business, class 2 financial instruments transaction business, land andbuilding transaction business, or real estate syndication business, and has no such transactions with JPR.

Overview of Accounting(1) Assets, Liabilities, Principal, and Profits and Loss

Please refer to the Balance Sheets, Statements of Income and Retained Earnings, Statements ofUnitholders' Equity and Notes to Financial Statements as well as Distribution Information.

(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.

Overview of Investment Trust Beneficiary Certificates of JPR(1) Acquisition

Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired 40 units of JPR
on September 14, 2001, and an additional 60 units on January 22, 2002 as a result of an investment unit split(2.5 units for one existing unit).

(2) Units HeldThe number of investment units held by Tokyo Realty Investment Management, Inc. has remained at 100
units through June 30, 2010 with the total investment unchanged at 20 million yen. The amount of units heldis immaterial versus the total units outstanding of JPR.

42

Other(1) Notice
Major issues related to the items approved at JPR's Board of Directors meeting are as follows.
Date

Approvals

Execution of New
Investment Unit
Underwriting Agreement
and New Investment Unit
Purchase Agreement related
to the Greenshoe Option

In regards to the additional issuing ofinvestment units approved at the Boardof Directors meeting on January 21,
2010, the administrative services related
to the offering of these investment units
were outsourced to the underwritersconsisting of Mizuho Securities Co.,
Ltd. and 6 other firms (Note 1)). To tie
a greenshoe option to the additional
issuing of investment units, a new
Investment Unit Purchase Agreement
related to the Greenshoe Option was
executed by JPR with Tokyo Realty
Investment Management and Mizuho
Securities.

Consignment ofadministrative services
concerning the issuanceof 11th series unsecured
corporate bonds (Note 2)

JPR consigned the administrative services
related to the issuance of the 11th series
unsecured corporate bonds to Goldman
Sachs Japan, Shinkin Securities andMizuho Corporate Bank based on thedecision to issue these bonds by the
executive director.

Consignment ofadministrative services
concerning the issuanceof 12th series unsecured
corporate bonds (Note 3)

JPR consigned the administrative
services related to the issuance ofthe 12th series unsecured corporate
bonds to Mizuho Securities and Mizuho
Corporate Bank based on the decision
to issue these bonds by the executive
director.

Feb. 1, 2010

Mar. 5, 2010

May 14, 2010

Details(Note 1) These six companies consist of Merrill Lynch Japan Securities, Nomura Securities, Daiwa Securities Capital Markets, Nikko Cordial Securities, Mitsubishi UFJ Securities(currently Mitsubishi UFJ Morgan Stanley Securities) and Tokai Tokyo Securities.
(Note 2) The comprehensive discussion regarding the issuance of these corporate bonds was agreed to at the Board of Directors meeting on April 22, 2009. The 11th series unsecured
corporate bonds were issued on March 12, 2010 based on this agreement.
(Note 3) The comprehensive discussion regarding the issuance of these corporate bonds was agreed to at the Board of Directors meeting on April 28, 2010. The 12th series unsecured
corporate bonds were issued on May 21, 2010 based on this agreement.

(2) Other

Unless otherwise stated, figures indicated in this Business Report are rounded off for values and rounded forratios to the nearest figure. Therefore, the aggregation of each individual item may not add up to the total
from hereon.

43Balance Sheets(As of December 31, 2009 and June 30, 2010)(Thousands of yen)

End of 16h Fiscal Period

End of 17th Fiscal Period(information only)(as of December 31, 2009)(as of June 30, 2010)￥ 13,972,954￥ 19,647,583

14,306,729

14,681,830

Operating accounts receivable

168,177

200,156

Prepaid expenses

190,316

192,994% Change

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust

Deferred tax assets
Other
Total current assets

29

46

6,164

6,133

28,644,372

34,728,743（21.2%）

Noncurrent assets
Property, plant and equipment
Buildings

46,691,236

47,696,388

Accumulated depreciation(4,068,032)

Buildings, net

42,623,203(4,442,600)
43,253,787

Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures

72,920,852

74,807,525(15,174,017)(16,262,208)

57,746,834

58,545,316

30,181

27,729

Accumulated depreciation(4,026)(3,737)Structures, net

26,15523,991

Structures in trust

89,44392,143(27,373)(30,464)

Accumulated depreciation
Structures in trust, net

62,07061,679Machinery and equipment

537,435

550,949(165,585)(186,948)

Accumulated depreciation
Machinery and equipment, net

371,850

364,001

Machinery and equipment in trust

1,304,524

1,385,887(749,755)(793,620)

554,769

592,267

Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures

34,07933,511

Accumulated depreciation(11,368)(12,207)

Tools, furniture and fixtures, net

22,71021,304Tools, furniture and fixtures in trust

97,559101,088(45,167)(51,923)

Accumulated depreciation
Tools, furniture and fixtures in trust, net

52,392

49,165Land

83,009,500

94,581,913

Land in trust

117,058,000

120,491,107

Construction in progress
Total property, plant and equipment

22,37723,982

301,549,865

318,008,517

1,542,818

4,794,109

5.5%

Intangible assets
Leasehold right
Other
Total intangible assets

5,111

5,256

1,547,929

4,799,366

210.1%

Investments and other assets
Lease and guarantee deposits

49,00049,000Long-term prepaid expenses

491,015

581,579

540,015

630,57916.8%

303,637,811

323,438,463

6.5%

Investment corporation bond issuance costs

97,848172,471

Total deferred assets

97,848172,471

76.3%￥ 332,380,032￥ 358,339,677

7.8%

Total investments and other assets
Total noncurrent assets

Deferred assets
Total assets(Note) See accompanying Notes to Financial Statements

44

(Thousands of yen)

End of 16h Fiscal Period(information only)(as of December 31, 2009)

End of 17th Fiscal Period% Change(as of June 30, 2010)

Liabilities
Current liabilities
Operating accounts payable￥ 1,107,794

Short-term loans payable

16,252,000

5,000,000

Current portion of long-term loans payable

6,716,000

21,499,000

Current portion of investment corporation bonds￥ 994,078

7,000,000

3,000,000

Accounts payable-other548,051

630,561

Accrued expenses

394,952

383,365

Income taxes payable
Accrued consumption taxes

624

605

312,246

31,017

Advances received

1,416,980

1,465,927

Total current liabilities

33,748,648

33,004,554

Investment corporation bonds

37,500,000

47,500,000

Long-term loans payable

83,404,000

84,263,000

Tenant leasehold and security deposits

6,009,582

6,463,850

Tenant leasehold and security deposits in trust

10,659,132

10,804,484

Total noncurrent liabilities(2.2%)

Noncurrent liabilities

137,572,715

149,031,334

8.3%

Total liabilities
Net assets
Unitholders' equity

171,321,364

182,035,888

6.3%

Unitholders' capital

156,725,438

171,339,818

4,333,229

4,963,970

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus

4,333,229

4,963,970

14.6%

Total unitholders' equity

161,058,667

176,303,789

9.5%

Total net assets
Total liabilities and net assets

161,058,667

176,303,789

9.5%￥ 332,380,032￥ 358,339,677

7.8%(Note) See accompanying Notes to Financial Statements

45

Statements of Income and Retained Earnings(For the six-month periods ended December 31, 2009 and June 30, 2010)(Thousands of yen)

16h Fiscal Period(information only)(July 1, 2009 December 31, 2009)17th Fiscal Period(January 1, 2010 June 30, 2010)% Change

Operating revenue
Rent revenue-real estate￥11,493,470￥11,855,159

11,493,470

12,314,808

Gain on sales of real estate properties

Total operating revenue
Operating expenses
Expenses related to rent business

459,648

5,010,746

5,144,388

Asset management fee

416,127

447,576

Administrative service and asset custody fees

67,754

68,218

Directors' compensations

6,600

6,600

Trust fees

48,24448,489

7.1%

Other operating expenses

116,423

115,525

Total operating expenses

5,665,896

5,830,796

2.9%

5,827,573

6,484,011

11.3%

6,846

7,658

Operating income
Non-operating income
Interest income
Income on settlement ofmanagement association accounts
Other

49,202
11,204

22,372

18,05079,233

Interest expenses

957,607

1,008,955

Borrowing expenses

74,22189,604

Interest expenses on investment corporation bonds

462,820

430,797

Amortization of investment corporation bond issuance costs

12,74816,329Total non-operating income

339.0%

Non-operating expenses

Unit-issuance costs
Other

2,378

Total non-operating expenses
Ordinary income

1,511,938

1,598,790

5.7%

4,333,685

4,964,454

14.6%

Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

4,333,685

4,964,454

14.6%

762

605

62

（16）

(Note) See accompanying Notes to Financial Statements

46

50,7234,542（28.7%）

825

588

4,332,860

4,963,866

14.6%

368

104

（71.7%）￥ 4,333,229￥ 4,963,970

14.6%

Statements of Unitholders' Equity(For the six-month periods ended December 31, 2009 and June 30, 2010)(Thousands of yen)

16h Fiscal Period(information only)(July 1, 2009 December 31, 2009)17th Fiscal Period(January 1, 2010 June 30, 2010)

Unitholders' equity
Unitholders' capital

Balance at the end of previous period￥156,725,438￥156,725,438

Changes of items during the period
Issuance of units

14,614,380

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

14,614,380
156,725,438

171,339,818

2,332,243

4,333,229

Surplus
Unappropriated retained earnings (undisposed loss)
Balance at the end of previous period
Changes of items during the period
Dividends from surplus(2,331,875)(4,333,125)

Net income

4,332,860

4,963,866

Total changes of items during the period

2,000,985

630,741

Balance at the end of current period

4,333,229

4,963,970

2,332,243

4,333,229

Total surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period

2,000,985

630,741

Balance at the end of current period

4,333,229

4,963,970

159,057,682

161,058,667

Total unitholders' equity
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period

2,000,985

15,245,121

161,058,667

176,303,789

159,057,682

161,058,667

Total net assets
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period

Balance at the end of current period

2,000,985

15,245,121￥161,058,667￥176,303,789(Note) See accompanying Notes to Financial Statements

47

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 accordance with accounting principles generally accepted in Japan (JapaneseGAAP), including provisions set forth in the Investment Trust Law, the Company Law and the related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR,
which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial
statements, certain reclassifications have been made to the financial statements issued domestically inorder 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 ispresented herein as additional information.
JPR's accounting period ends at the end of June and December. JPR's 17th accounting period began on
January 1, 2010 and ended on June 30, 2010.

Significant Accounting Policies
1. Depreciation Method for Property and Equipment(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property
and equipment ranges are as follows:
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures

3 - 65 years
10 - 35 years
3 - 17 years
3 - 20 years

Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated inthree years based on the Corporation Tax Law.
(2) Intangible Assets
Intangible assets are depreciated utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are depreciated utilizing the straight-line method.

2. Accounting for Deferred Assets(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are depreciated utilizing the straight-line method over theredemption periods.
(2) Unit Issuance Costs
Unit issuance costs are expensed when incurred.

48

3. Standards for Recording Revenues and Expenses
Accounting Treatment of Taxes on Properties and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR adopts the methodof 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 ofreal estate or entrusted beneficiary interest with real estate as entrusted property. During the 17th fiscal
period, the amount equivalent to the property taxes included as an acquisition cost of real estate totaled
51,841 thousand yen.

4. Other Significant Items Fundamental to Preparing the Financial Statements(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 arerecorded in relevant accounts on the balance sheets and statements of income.
Fur ther more, the following mater ial 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.

Notes to Balance Sheets
1. Assets Pledged as Collateral and Secured Liabilities(Thousands of yen)

End of 16th Fiscal Period
Assets pledged as collateral are as follows:
Cash and deposits in trust
Buildings (net)
Buildings in trust (net)
Structures in trust (net)
Machinery and equipment (net)
Machinery and equipment in trust (net)
Tools, furniture and fixtures in trust (net)LandLand in trust
Other (intangible assets)
Total

Secured liabilities are as follows:
Current portion of long-term loans payable
Long - term loans payable
Tenant leasehold and security deposits
Total(information only)(as of December 31, 2009)

End of 17th Fiscal Period(as of June 30, 2010)￥18,164,992￥ 2,200,489
133,851
6,684,100
3,288
4,622
14,6572,037
399,183
8,536,013
147￥17,978,392

End of 16th Fiscal Period

End of 17th Fiscal Period￥ 2,231,835
135,720
6,840,773
3,514
4,793
10,851
2,307
399,183
8,536,013(information only)(as of December 31, 2009)￥ 9,183,000
15,536￥ 9,198,536(as of June 30, 2010)￥ 4,783,000
4,400,000
15,536￥ 9,198,536

49

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks to minimize refinancing risks
and enhance financial stability.
(Thousands of yen)

End of 16th Fiscal Period(information only)(as of December 31, 2009)

Contract execution date
Credit limit
Outstanding debt at end of period
Unused commitment line at end of period

End of 17th Fiscal Period(as of June 30, 2010)

December 1, 2008
￥16,000,000

December 1, 2008
￥16,000,000￥16,000,000￥16,000,000

3. Minimum Total Unitholders' Equity Designated in Article 67- 4 in the Investment Trust Law(Thousands of yen)

End of 16th Fiscal Period(information only)(as of December 31, 2009)

End of 17th Fiscal Period(as of June 30, 2010)￥50,000￥50,000

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

A. Rent Revenue-Real Estate
Rent revenue
Rents
Common charges
Parking revenues
Advertising expenses
Antenna use fees
Other
Subtotal
Other rental revenues

16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)17th Fiscal Period(January 1, 2010 June 30, 2010)￥8,717,962
1,703,699
208,631
17,11910,80926,02910,684,253￥9,016,339
1,730,099
209,930
19,942
10,784
27,693
11,014,790

Incidental income
699,637
Time-based parking revenues
7,917
Cancellation charges
30,914
Income equivalent to expenses for restoration to as is condition
41,057
Other miscellaneous income
29,690Subtotal
809,216￥11,493,470
Total rent revenue-real estate

616,055
8,368
146,311
38,66530,967840,368￥11,855,159

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

50￥

488,087
663,069
885,923
30,330230,776
214,291
569,469
1,850,113
78,685￥5,010,746￥￥6,482,724￥6,710,771

497,216
630,556
995,353
30,379214,290
219,147
569,032
1,896,791
91,618￥5,144,388

2. Breakdown of Gain on Sales of Real Estate Properties(Thousands of yen)

16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)

JPR Nagoya Sakae Bldg.
Proceeds from sales of real estate properties
Costs of sales of real estate properties
Other related sales expenses
Total gain on sales of real estate properties

17th Fiscal Period(January 1, 2010 June 30, 2010)￥4,937,296
4,434,630
148,578￥ 354,087

A Portion of Land of JPR Jingumae 432
Proceeds from sales of real estate properties
Costs of sales of real estate properties
Total loss on sales of real estate properties￥301,650
196,088￥105,561

Notes to Statements of Changes in Unitholders' Equity
16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)

The number of units outstanding

625,000 units

17th Fiscal Period(January 1, 2010 June 30, 2010)
715,000 unitsTax Effect Accounting
1. Breakdown of Main Causes for Deferred Tax Assets(Deferred tax assets)(Thousands of yen)

16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)Enterprise tax not deductible for income tax purposes
Local enterprise special tax not deductible for income tax purposes
Lump-sum depriciated assets not deductible for tax purposes
Total deferred tax assets
Net deferred tax assets(January 1, 2010 June 30, 2010)

￥ 4
3
22
29
￥29

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

16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)

Effective statutory tax rate
(Adjustment)
Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting

17th Fiscal Period

￥
46
46
￥ 46

17th Fiscal Period(January 1, 2010 June 30, 2010)39.33%

39.33%(39.32%)
0.01%
0.02%

(38.35%)(0.97%)
0.01%

Property and Equipment Leased to JPR
16th Fiscal Period (information only)(July 1, 2009 - December 31, 2009)17th Fiscal Period(January 1, 2010 - June 30, 2010)

No property and equipment leased to JPR

No property and equipment leased to JPR

51

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 notengaged 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 by complying with the JPR Asset Management Guidelines and other rules and regulations. The
following outlines the description of individual financial instruments and the associated risks, and the risk
management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit
risks, but risks are managed through such measures as setting a minimum credit rating for the financial
institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/
redemption, but liquidity risks are managed through such measures as procuring funds from the capital
market by increasing capital, executing a commitment line agreement with the main lending financial
institutions, and also having statements of cash receipts and disbursements prepared by the financial
division.
(3) Supplementary Explanation on Matters Concerning 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 reasonable calculations when there is no market price. Certain assumptions, etc. are adopted in
calculating those values and there may be cases where the values will vary when different assumptions, etc.
are adopted.
2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying value and estimated fair values as of June 30, 2010, and the difference
between these amounts. Please note that the following table does not include those for which discerning of
estimated fair value is recognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)

1) Cash and deposits

Carrying Value

Estimated Fair Value(Note 1)

(Note 1)

￥ 19,647,583￥ 19,647,583

14,681,830

14,681,830

2) Cash and deposits in trust

Difference￥3) Short-term loans payable(5,000,000)(5,000,000)

4) Current portion of long-term loans payable(21,499,000)(21,594,554)

95,554

5) Current portion of investment corporation bonds(3,000,000)(3,023,400)

23,4006) Investment corporation bonds(47,500,000)(48,116,034)

616,034￥(84,263,000)￥(86,987,115)￥2,724,115

7) Long-term loans payable(Note 1) Those stated under 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 are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thus stated at that book value.
(3) Short-term loans payable
As these are settled within a short period of time and also have floating interest rates, the estimated fair value is approximately the same as the book value andis thusstated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
The estimated fair value of these are based on the method of calculating by discounting the sum 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.

52

(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these, those with market price are calculated based on market price and those with no market price are calculated according to(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 the carrying value of tenant leasehold and security deposits in trust.

(Thousands of yen)

Carrying Value
Tenant leasehold and security deposits￥ 6,463,850

Tenant leasehold and security deposits in trust￥10,804,484(Note 4) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.

(Thousands of yen)Due in One Year or Less
Cash and deposits￥19,647,583

Cash and deposits in trust￥14,681,830(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 settlement of accounts.

(Thousands of yen)Due in One Year Due after One Yearor Less through Two Years
Short-term loans payable
Investment corporation bonds
Long-term loans payable

Due after Two
Years throughThree Years￥ 5,000,000
3,000,000￥ 5,000,000￥ 9,000,000￥21,499,000￥21,116,000￥19,811,000(Thousands of yen)

Due after Three Year Due after Four Year Due after Five Years
through Four Years through Five Years
Short-term loans payable
Investment corporation bonds￥ 5,000,000￥24,000,000￥ 4,500,000

Long-term loans payable￥25,336,000￥ 5,200,000￥12,800,000(Additional Information)
The “Accounting Standard for Financial Instruments” (Accounting Standards Board of Japan (ASBJ) Statement No. 10 issued on March 10, 2008) and“Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on March 10, 2008) are applied as of the 17th fiscal
period.

53

Investment and Rental Properties
JPR owns urban office buildings and retail facilities for leasing in Tokyo and other regions. The following is the
carrying value, amount of increase (decrease) during current period and estimated fair value of these investment
and rental properties.

Carrying Value

As of December 31, 2009

Amount of
Increase (Decrease)
During Current Period￥303,090,465￥19,714,401

As of June 30, 2010

Estimated Fair Value at
End ofCurrent Period￥322,804,866￥308,134,000(Note 1) The carrying value is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) during current period for investment and rental properties, the amount of increase is primarily attributable to acquisition ofTokyo Tatemono Kyobashi Building (5,282,718 thousand yen), TK Horidome Building (5,267,652 thousand yen) and JPR Sendagaya Building (15,402,742 thousandyen) and the amount of decrease is primarily attributable to sale of JPR Nagoya Sakae Building (4,448,639 thousand yen).
(Note 3) The estimated fair value at end of current period is the appraisal value or survey value as appraised by an outside real estate appraiser.
The income (loss) in the 17th fiscal period for investment and rental properties are as presented in the “Notes to Statements of Income.”(Additional Information)
The “Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Statement No. 20 issued on November 28, 2008) and“Guidance on Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Guidance No. 23 issued on November 28, 2008)
are applied as of the 17th fiscal period.

Transactions with Interested Parties
16th Fiscal Period (information only) (July 1, 2009 – December 31, 2009)
No transactions with interested parties

17th Fiscal Period (January 1, 2010 – June 30, 2010)

AttributeAssetcustodianName ofCompany,etc.

Business
DescriptionorOccupation

Percentage
of Number ofTransaction
Investment
AmountUnits Held Transactions
Among Total(thousands ofNumber ofyen)
Investment
Units

BankingMizuho Trust& Banking business andtrust businessCo., Ltd.

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

54(Thousands of yen)

Long-term
borrowings￥3,000,000

Interest
expenses￥16,511

Account

Balance at End
of Period(thousands ofyen)Long-term￥3,000,000
loans payable
Accruedexpenses￥565

Per Unit Information(Yen)

16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)

Total net assets per unit
Net income per unit

17th Fiscal Period(January 1, 2010 June 30, 2010)￥257,693￥6,932￥246,578￥7,145

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 warrants and convertible bonds are outstanding.
(Note) Net income per unit was calculated based on the following data:(Thousands of yen)

16th Fiscal Period(information only)(July 1, 2009 December 31, 2009)17th Fiscal Period(January 1, 2010 June 30, 2010)￥4,332,860￥4,963,866￥4,332,860
625,000 units￥4,963,866
694,690 units

16th Fiscal Period

17th Fiscal Period

Net income
Amounts not attributable to ordinary unitholders
Net income attributable to ordinary investment units
Average number of units

Distribution Information(Yen)(information only)(July 1, 2009 December 31, 2009)

1. Unappropriated retained earnings
2. Distributions(distribution per unit)
3.Voluntary deposits
Transfered from deposits for advanced depreciation
4. Retained earnings brought forward(January 1, 2010 June 30, 2010)￥4,333,229,310
4,333,125,000(6,933)￥4,963,970,414
4,840,550,000(6,777)￥￥73,946,740
104,31049,473,674

In accordance with the distribution policy stipulated in Article 30-2 of the Articles of Incorporation,
JPR will be able to distribute only to the extent of the profits and needs to distribute in excess of 90% of
JPR's distributable income as stipulated in Article 67-15 of the Special Taxation Measures Law. Based on
this policy, JPR decided on a total distribution of 4,840,550,000 yen for the 17th fiscal period. This is the
maximum value arrived at when the number of units outstanding (625,000 units for the 16th fiscal period
and 715,000 units for the 17th fiscal period) is multiplied by an integer, within the limit of retained earnings
for the respective fiscal period and within the limit of not placing a burden of additional income taxes on
our unitholders. Furthermore, JPR does not make cash distributions in excess of the profit as stipulated in
Article 30-4 of the Articles of Incorporation.

55

Report of Independent Auditors

56

Statements of Cash Flows (Information Only)(For the six-month periods ended December 31, 2009 and June 30, 2010)(Thousands of yen)

16th Fiscal Period

17th Fiscal Period(July 1, 2009 December 31, 2009)(January 1, 2010 June 30, 2010)￥ 4,333,685￥ 4,964,454

1,850,874

1,897,485

12,74816,329(6,846)(7,658)Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Unit-issuance cost
Interest income
Interest expenses

50,723

1,420,427

1,439,753

Decrease (increase) in operating accounts receivable

30,335(31,978)

Decrease (increase) in consumption taxes refund receivable

357,367

Decrease (increase) in prepaid expenses(6,083)

Increase (decrease) in operating accounts payable(2,677)(115,192)

72,070

Increase (decrease) in accounts payable-other

23,046(8,501)

Increase (decrease) in accrued consumption taxes

312,246(281,229)

Increase (decrease) in advances received

250,029

48,947

Decrease in property, plant and equipment

4,630,718

Other, net

105,522(137,437)

Subtotal

8,568,160

12,651,001

6,846

7,658

(1,302,843)(1,451,340)

2,425

(924)

7,274,589

11,206,394

Purchase of property, plant and equipment(3,590,282)(17,640,017)

Purchase of property, plant and equipment in trust(9,032,089)(5,531,870)(1,052)(3,252,190)

Interest income received
Interest expenses paid
Income taxes (paid) refund

Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Purchase of intangible assets
Repayments of tenant leasehold and security deposits(114,984)(579,727)

Proceeds from tenant leasehold and security deposits

78,7691,081,891

Repayments of tenant leasehold and security deposits in trust(292,145)(236,989)

Proceeds from tenant leasehold and security deposits in trust

643,841

470,475(12,307,943)(25,688,429)

Net cash provided by (used in) investing activities

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

16,252,000

4,000,000

Decrease in short-term loans payable(16,152,000)(15,252,000)

Proceeds from long-term loans payable

10,900,000

16,000,000

Repayment of long-term loans payable(358,000)

Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds(358,000)
12,909,047(10,000,000)

Proceeds from issuance of units(7,000,000)
14,563,656

Dividends paid

(2,332,426)(4,330,938)

Net cash provided by (used in) financing activities(1,690,426)

20,531,765

Net changes in cash and cash equivalents(6,723,781)

6,049,730

Cash and cash equivalents at beginning of period

35,003,464

28,279,683￥ 28,279,683￥ 34,329,413

Cash and cash equivalents at end of period

57

Significant Accounting Policies
Scope of funds (cash and cash equivalents) in the Statements of Cash Flows
Funds (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 bank and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash, have insignificant risk of price fluctuationand original maturities of three months or less from the acquisition date.

Notes to Statements of Cash Flows(Thousands of yen)

16th Fiscal Period

Breakdown of cash and cash equivalents
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

58(information only)(July 1, 2009 December 31, 2009)
As of December 31, 2009
￥13,972,954
14,306,729￥28,279,683

17th Fiscal Period(January 1, 2010 June 30, 2010)
As of June 30, 2010
￥19,647,583
14,681,830￥34,329,413

JPR Investment Policies (Reference)

These Investment Policies have been updated to reflect the revisions made to the Internal Rules (JPR Asset Management
Guidelines) on December 24, 2009.

A. INVESTMENT POLICIESBasic Policies
JPR's basic investment strategy centers on investment in urban commercial real estate. The Company will
invest primarily in real estate, which comprises superior urban office buildings and retail properties foundin thriving commercial areas, the land on which they are located, as well as in asset-backed securities thathave such real estate as their primary investments. In light of the returns and risks of these investments,
the Company will invest not only in Tokyo but will attempt to diversify into other cities so as to maximize
portfolio return.
The Company will diversify investments in terms of both tenants and properties, taking into accountthe amount of investment per property, and will thereby seek to achieve stable medium- and long-term
growth. Investment ratio targets are as shown on page 60 under "Investment Stance."
Note: For the definitions of "real estate" and "asset-backed securities that have real estate as their primary investments," please refer to the next section
under " Types of Investment Assets"

Types of Investment Assets
I) "Real estate" refers to the following:i) Real estateii) Real estate leasing rightsiii) Surface rightsiv) Beneficiary interests in the following trusts (including comprehensive trusts in which cash associated with realestate is also entrusted, but excluding the marketable securities defined in the Enforcement Order of the Law
Concerning Investment Trusts and Investment Corporations prior to the revisions pursuant to the Law to Partially
Revise the Securities Exchange Law, enforced on September 30, 2007, and to Article 3 of the Cabinet Order (2007
Cabinet Order No. 233) Concerning Preparations of Related Cabinet Orders Accompanying the Enforcement of the
Law Concerning Preparations of Related Laws Accompanying the Enforcement of the Law to Partially Revise the
Securities Exchange Law (hereinafter referred to as “former marketable securities.”)a) Real estateb) Surface rights and land leaseholdsv) Beneficiary certificates in monetary trusts (limited to trusts for which the primary purpose is investment in
the assets listed in i) to iii) above; excludes equivalents to former marketable securities)vi) Equity investment based on a contract that specifies that one party will provide funding to be invested in "theassets identified in i) to v) above and the other party will invest these funds in said assets, with theprofits and losses from these investments distributed to investors ("Tokumei Kumiai equity "in Japanese,referred to as "TK equity" hereinafter)II) "Asset-backed securities that have real estate as their primary investments" refer to investment insecurities with over half of their investment backed by real estate, detailed as follows:i)

Preferred securities as defined the Law Concerning Asset Liquidation (Law No. 105 of 1998, including all
subsequent amendments; referred to as the "Asset Liquidation Law" hereinafter)ii) Beneficiary certificates in investment trusts as defined under the Investment Trust Lawiii) Investment securities as defined under the Investment Trust Lawiv) Beneficiary certificates in special-purpose trusts as defined under the Asset Liquidation Law (excludes
beneficiary certificates in trusts listed in I) iv) and v) above)III) The Company may invest in the following designated assets in order to efficiently utilize surplus funds
remaining after the investments listed in I) and II) above:i)

Former marketable securities (as far as stock certificates are concerned, however, this is limited to thoserecognized to be necessary or useful in terms of the basic policies for asset management)ii) Monetary claims (as defined in the former Enforcement Order of the Law Concerning Investment Trusts andInvestment Corporations and include bank deposits, large-scale time deposits and transferable deposits (excluding
former marketable securities) and call loans)iii) Rights resulting from financial futures transactions (as defined in the former Enforcement Order of the Investment
Trust Law)
iv) Rights resulting from financial derivatives transactions (as defined in the former Enforcement Order of theInvestment Trust Law)v) Beneficiary interests in monetary trusts for the purpose of investments in those described in i) to iv) above.

59IV) In addition to the specified assets identified in I) through III) above, the Company may invest in thefollowing assets when considered appropriate or of benefit to the Company in accordance with its basic
investment management policy:i) Trademarks, exclusive licenses and ordinary use rights based on the Trademark Law (Law No. 127 of 1959,
including all subsequent amendments)ii) Rights to use the source of hot springs as set forth in the Hot Spring Law (Law No. 125 of 1948, including all
subsequent amendments) and facilities related to such hot springsiii) Other assets related to the real estate, which are considered appropriate to acquire together with the subject
real estateV) The Company may invest in assets other than the assets under management when considered appropriate
and in line with the organizational operation of trademarks, etc., relating to the Company's name.

Investment StancePortfolio Management Standards
The table below indicates the general targets of the investment ratio by asset type, region, use, etc. that should
serve as the standards for portfolio management.
Type of Investment Asset

Real Estate Asset

Target Ratios

By Asset ClassAs the allocation ratio between office buildings and retail properties,
office buildings will be approximately from 70% to 90% and retailproperties will be approximately from 10% to 30% of the managed
portfolio, based on acquisition price

By Location

As the allocation ratio between Tokyo and other cities, Tokyo will beapproximately from 80% to 90% and other cities will be approximatelyfrom 10% to 20% of the managed portfolio, based on acquisition price

Rental revenues from any individual tenant (total rental revenue when the tenant
occupies multiple compartments and/or properties) will, in principle, be limited to lessthan 10% of total rental revenues
Asset-Backed
Securities, etc.
i)

The total after-investment value of asset-backed securities shall, in principle, be limited
to less than 10% of the net worth of the Company

Period of ownership
The Company will, in principle, hold assets for the medium- and long-term (one to five years and over five
years, respectively) and will not acquire assets for the purpose of short-term trading (less than one year).

ii) Use
JPR's investment targets primarily comprise excellent office buildings (urban commercial facilities) and retailproperties found in thriving commercial areas. (The targets cover other assets including building leaseholdsof the office buildings and retail properties, the leaseholds and surface rights of the land on which they arelocated, and marketable securities and trust beneficiary interests backed by such real estate.)
JPR will determine the allocation ratio of these assets in the portfolio based on full considerations of theeconomic situations, real estate market trends and other factors for respective occasions. As the allocation ratio
between office buildings and retail properties, office buildings will be approximately from 70% to 90% andretail properties will be approximately from 10% to 30% of the managed portfolio, based on acquisition price.
iii) Region
JPR shall work to realize a diversification of the portfolio, not limited to Tokyo but investing in regional cities,
primarily in consideration of the earthquake risks and risks associated with individual market conditions and inorder to generate more cash flow.
As the allocation ratio between Tokyo and other cities, Tokyo will be approximately from 80% to 90% and other
cities will be approximately from 10% to 20% of the managed portfolio, based on acquisition price. However,
JPR does not set a target allocation ratio within any region.

Note: JPR defines “Tokyo” as an investment area that refers to the combination of “Tokyo CBDs” and “Greater Tokyo” as designated below.
Category
Tokyo

Tokyo CBDs
Greater Tokyo
Other Cities

60

RegionChiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
All other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures
All other areas in Japaniv) Tenants
Rental revenues from any individual tenant (total rental revenue when the tenant occupies multiple
compartments and/or properties) will, in principle, be limited to less than 10% of total rental revenues.
("Rental revenues" includes common charges, parking revenues and storage revenues, but does not include
additional usage fees such as after-hours air-conditioning charges.) This ratio may be exceeded, however, if
there is any potential for tenant changes or if warranted by general considerations of leasing conditions andother factors.
v) Asset-backed securities, etc. primarily investing in real estate
The total after-investment value of asset-backed securities shall, in principle, be limited to less than 10% of thetotal unitholders’ equity of the Company. Investment in asset-backed securities assumes that there will be an
opportunity to obtain the relevant property, etc., at the end of the asset-backed security period.
vi) Investment policies for development projects
The Company will, in principle, acquire only real estate that generates or is expected to generate stable rental
revenues or similar revenues at the time of acquisition.
i) Development investments
The Company will not engage in development investments (projects in which the Company itself
develops land and builds buildings). However, the Company may place orders by concluding contract
agreements for the construction of a building. However, the Company shall not do so in situations
where it is not appropriate to place orders by concluding contract agreements for the construction of abuilding (including, but not limited to, the following cases).
When tenants need to vacate the premises for a certain period of time due to large-scale repairs,
renovations, etc., and it causes cash flow to fluctuate to the extent that the entire portfolio of theCompany is severely impacted.
When the acquisition of vacant land and investment to construct a new building severely impacts
the entire portfolio of the Company. Moreover, the measure of impact on the entire portfolio of theCompany shall be determined by giving consideration to the various risks with regard to real estatedevelopment (risks regarding development licenses/permission, interest rate fluctuations during
development, occurrence of great natural disasters, etc.) and the period of time required until cash
flow arises, among others.
ii) Rebuilding projects
The Company may conduct rebuilding projects for properties that it has already acquired, provided thatsufficient potential to secure tenants after rebuilding is determined and the projects are confirmed as
non-development investments.
iii)Properties under development
The Company may conclude sale and purchase agreements for buildings under construction by third
parties prior to their completion if sufficient potential to secure tenants after construction is determined
and if completion/delivery risk has been minimized.
vii) Equipment and fixtures investment policies
The Company will invest in equipment and fixtures in accordance with an efficient upkeep plan created foreach property and designed to maintain and improve the competitiveness of the property from mediumand long-term perspectives. In implementing equipment and fixtures investments, such investments will in
principle be made within the scope of the depreciation expense of the portfolio as a whole. In addition, repairs
to common areas will be implemented quickly by the Company from the perspective of tenant operational
policies, and reinforcements will be made quickly for buildings requiring earthquake resistance reinforcements
in light of the status of tenant operations.
viii) Insurance policiesa) Criteria for selecting underwriting insurance companies:
The Company will select fair underwriting insurance companies through independent brokers.
In principle, the underwriting insurance company for insurance finance shall have a long-term rating of
A3 or better from Moody’s Investors Service Inc. (referred to as “Moody’s” hereinafter) or A- or betterfrom Standard & Poor’s.
b) Earthquake insurance coverage criteria:
The decision to cover earthquake insurance will be made in light of comparisons between thepotential impact of the disaster and property insurance premiums based on the PML for the entire
portfolio. Earthquake insurance may be purchased individually for properties that have high PML.
Note: "PML" refers to the probable maximum loss in the event of an earthquake. PML may be calculated for individual properties
or for the portfolio as a whole. While there is no strict definition of PML (valuation methods will differ depending on the institution
conducting the survey), it is generally found by calculating the probable damage from the largest foreseeable earthquake during
the expected period of use (50 years is the useful lifetime ordinarily assigned to buildings; the largest foreseeable earthquake isa major earthquake of a size seen once every 475 years, having a 10% probability of occurring during any 50 year span). The figure
represents the ratio of projected expenses for restoration of damage to the price of reacquisition.

61ix) Sales policya) The Company will select real estate, asset-backed securities that have real estate as their primary
investments, and other investments in its holdings to be sold based on overall considerations of thecurrent status of the asset to be sold, projections of its future profitability and changes in asset value,
and the asset allocation of the portfolio as a whole.
b) The Company will determine asset values each fiscal term and an investment policy committee will
study whether to sell or hold any property that has declined more than 20% in terms of appraisedvalue compared with book value. In addition, the Company may also consider the sale of otherproperties as it sees fit, as warranted by market conditions and other factors. The following are themain considerations in determining sales:
Market forecast
Development forecast for the surrounding area
Profitability forecast
Estimated amount of future investments
Forecast changes in valuation
Considerations of the portfolio as a whole (diversification by geographical location, tenant andasset class, etc.; impact on dividends, etc.)x) Value-up properties
Value-up properties refer to those properties that exhibit the potential for an increase in profitability and asset
value, and have an immediate income stream on acquisition, along with any of the following characteristics:
1. An occupancy rate of less than 80% at the time of acquisition
2. Significant investment return following effective renovation work
In principle, value-up properties occupy a maximum 15% of the total property portfolio (based on acquisition
price). The additional acquisition of value-up properties is also subject to a total portfolio occupancy rate inexcess of 90%.
Utilizing the know-how of its asset management company, the Company implements the following key strategies
in the management of value-up properties:
1. Reinforce leasing activities with the aim of improving the occupancy rate
2. Carry out effective renovations to enhance market competitiveness3. Implement cost controls by increasing efficiencies in management structure
Value-up properties will be reclassified as core properties, as defined below, when the Investment
Committee judges that the properties have realized enhanced values. The Company will consider thesale of value-up properties as one method to realize asset value appreciation.
xi) Core properties
Core properties refer to office buildings other than value-up properties. Core properties are
positioned as those properties that contribute to the profit stability of the overall portfolio.

Investment Standards
When investing in individual real estate properties, asset-backed securities that havereal estate as their primary investments, or other investments, the Company will, prior to
making the investment, perform a general evaluation that considers the current status, future
profitability, risk, location, building and facilities maintenance and management, deteriorationand obsolescence, earthquake resistance, rights, contracts with current tenants, environment,
topography, as well as other factors.
After acquisition of real estate, asset-backed securities that have real estate as their primary
investments or other investments, the Company will make ongoing and effective investments
in facilities and equipment so as to maintain and improve the value and competitiveness of theasset, and will seek to stabilize and expand profitability by increasing revenues and reducing
costs.
The major specific investment criteria of the Company are as follows:i) Geographical location
Real estate to be invested in will be located in the following areas:a) Major urban areas: CBDs in Tokyo, Yokohama, Kawasaki, Chiba, Saitama, Nagoya, Osaka,
Kyoto and Kobeb) Other government-designated cities: CBDs in Sapporo, Sendai, Hiroshima, Fukuoka,
Kitakyushu and othersc) Other core cities such as prefectural capitals with populations of 300,000 or more62

When investing in retail properties, the Company will identify and determine an appropriate
business area for the property; analyze the business area from a variety of perspectives, including
population, demographic trends, number of households and average income; appropriately measure
the latent buying power and growth potential of the business area; and determine the suitabilityof the tenants and their businesses to the business area. The Company will also study and analyze
competitiveness from a variety of perspectives, including current market competition, plans for the
opening of competitive stores in the vicinity, and future room for development.

ii) Sizea) Office buildings
In principle, the Company will invest in office buildings with total floor space of at least 3,300
square meters and floor space of approximately 330 square meters for each standard floor above
the second story level.
b) Retail properties
In principle, the Company will invest in retail properties of an appropriate size in light of the
future growth potential of their areas, as determined by local characteristics, business area scale
and the standard property size for similar businesses.
iii)Facilities and equipmenta) Office buildings
The Company will evaluate specifications on a case-by-case basis, after giving generalconsideration to local characteristics or potential for post-acquisition property modifications, etc.
and fully confirming the specifications including the shape and dividability of lease floors, ceilingheight, floor fittings, power capacity and air-conditioning systems.
b) Retail properties
The Company will decide on retail properties individually, comparing them against standard
qualifications and judging from overall factors, including the local characteristics of theproperty's area, versatility as a retail property, potential for conversion to other uses, visitor
access, etc.
iv) Earthquake resistance
The Company will, in principle, invest only in buildings that meet new earthquake-resistancestandards (specified under the Buildings Standards Law) or for which earthquake-resistancereinforcement work has been completed (including properties for which earthquakeresistance reinforcement work has not been done, but can be completed after acquisition).
v) Tenantsa) Office buildings
In principle, no single tenant will occupy more than 50% of a property (parent companies
and their subsidiaries are considered as a single tenant). If a tenant occupies more than 50%,
the Company can acquire the property after an evaluation of the tenant's creditworthiness,suitability and substitution potential.
b) Retail properties
Although JPR establishes no limitation on the floor occupancy rate of a single tenant, theCompany will make a general evaluation of the tenant's creditworthiness, profitability of
individual shops, replacability and other factors in selecting tenants. The Company willconduct vigorous property examinations with an aim to pick up properties with strong
capability to attract tenants, while analyzing the subject trade zones and the competitive
situations. After the acquisition, the Company will continue monitoring of tenants.
vi) Rightsa) Co-ownership

The Company will, in principle, seek a co-ownership ratio above 50% in order to assure sufficient
latitude in property management (leasing, improvements, etc.), but may acquire properties
with an ownership ratio below 50% on a case-by-case basis after considering the nature andcreditworthiness of other owners and the characteristics of the property.
The Company shall, in order to assure sufficient latitude in disposal of the property, confirm
whether special contracts or other agreements providing for preferential purchasing rights or
options among the other owners will be executed and whether restrictions will be placed on thetransfer of rights, and if so, the nature of these restrictions.
The Company will attempt to assure the stability of revenues by fully confirming the nature andcreditworthiness of other owners and, where possible, providing for appropriate procedures.
(This may include, but is not limited to, signing contracts prohibiting the division of joint equity
and reaching agreements on the registration of rights and the mutual use of land).

63b) Unit ownership
The Company will, in principle, reserve for itself at least 75% of the voting rights inmeetings attended by unit owners in order to assure sufficient latitude in improvements.
However, it may make individual decisions based on a general evaluation of the nature andcreditworthiness of other unit owners.
The Company shall, in order to assure sufficient latitude in disposal of the property, confirm
whether special contracts or other agreements providing for preferential purchasing rights or
options among the other owners will be executed, and whether restrictions will be placed on
the transfer of rights, and if so, the nature of these restrictions.
The Company will attempt to ensure the stability of revenues by confirming the operationsof the management union (reserves, liability ratios, insurance, etc.) and will take suchindividual measures as are required. (This may include, but is not limited to, increasing
accumulated amounts within the Company itself, or providing for insurance on the joint
areas and registration of land rights separately from the management union.)c) Leaseholds
The Company will, in principle, invest in leaseholds as specified in the old Leasehold Law(Law No. 49 of 1921, including all subsequent amendments) and the Land and Building
Leasing Law (Law No. 90 of 1991, including all subsequent amendments).
The Company will carefully study the nature of the proprietary right holder of land and will
make its decision after fully investigating the impact of the provisions for rent revisions,charges for renewing the leasing contract, charges for approval of rebuilding proposals,
charges for the approval of sales proposals and other factors in concerning profitability.
d) Collateral rights and usufructuary rights
The Company will confirm the existence of mortgages or other collateral rights on the
proposed property at the time of purchase, and the possibility of extinguishing such rights
on closing.
The Company will make its decision after confirming the existence of usufructuary rights(for example, surface rights or easements) set forth by third parties and the impact that suchrights will have on profitability.
vii) Investment amounta) Minimum investment per property
The minimum investment per property (only the purchasing price, exclusive of taxes,
acquisition costs, etc.) will, in principle, be more than 1 billion yen. A property can beacquired for a lesser amount under the following circumstances:
When acquiring part of a property valued in total at over 1 billion yen
When acquiring a property with an appraisal value of more than 1 billion yen, but acquired
after negotiation for a lesser amountIn cases where several properties are being acquired together as a package and theconcerned property is a subordinate assetb) Maximum investment per property
The ceiling on the investment amount per property will be one-third of the total investment
in real estate, asset-backed securities and other investments already held. Generally, however,properties that exceed this ratio can be acquired in cases where this is deemed advisable. The"total investment in real estate, asset-backed securities and other investments already held"refers to the total appraised value of investments up to the previous period, plus the price ofinvestments purchased in the current period (exclusive of taxes, acquisition costs, etc.), plus
the amount to be invested in the new property (exclusive of taxes, acquisition costs, etc.).
c) Restrictions on acquisition priceHowever, provided that the property acquisition does not cause the total property acquisition
fund to fall below the NOI yield criterion for the current period, the above-mentioned
acquisition price’s upper limit of 105% of appraised value can be exceeded in the following
cases:
Properties that, by long-term fixed leasing contracts, are forecast to contribute to stable
cash flow and that are expected to contribute to stably generating dividends in the mediumto long-term
Properties that, in terms of scale, location or general standpoint, are judged to contributeto an increase in total fund quality and that are expected to contribute to stably generating
dividends in the medium- to long-termviii) Selection guidelines concerning real estate acquisition ownership type
The Company acquires real estate under direct ownership or on an entrusted basis, acquiring
beneficiary interests to the property. The decision as to which form of ownership theCompany will take is determined after considering the requirements of the existing owner,
the cost of transferring rights and a number of other factors.

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B. FINANCIAL POLICIESFund Management Policies
I) Leasehold and security deposits
For real estate trust beneficiary interests
In principle, all leasehold and security deposits by tenants will be reserved within the trust account,but the Company shall be able to reduce the reserve amount if warranted by accumulated historical
data, the establishment of commitment lines and other provisions.
For real estate, real estate leaseholds and surface rights
In principle, leasehold and security deposits by tenants will be deposited in full to a commercial banksavings account or time deposit account. However, the Company shall be able to reduce reserves
in order to more effectively utilize these funds if warranted by accumulated historical data, theestablishment of commitment lines and other provisions, while ensuring to maintain security.
II) Cash and bank deposits in the trust account (for real estate in trust)
All cash will be deposited in ordinary savings accounts or time deposit accounts at banks with shortterm debt ratings of at least P-2 from Moody's.
III) Cash and bank deposits in the Company accounts
The provisions of II) above will apply to cash and bank deposits in the Company accounts. However,this will not include savings accounts established for use in the execution of loans by financial
institutions or the payment of interest on loans.
Surplus funds will, in principle, be paid out in the following order of priority; any balances will beadministered as described above:
Reinvestment (refers to a use in purchasing properties or capital expenditures)
Cash distribution to investors (however, no cash distributions will be made to investors inexcess of profits as long as the current tax treatment requires investors to calculate capitalgains/losses each time such investors receive cash distribution exceeding earnings. However,if the board of the Company decides that cash distribution exceeding earnings is required, thecash distribution exceeding earnings is allowed.
Partial repayment of borrowings (however, this will be given the highest priority when therepayment maturity date of the loan agreement arrives, regardless of the priorities listed
above)IV) Derivatives
The Company will use financial futures, options and other derivatives only for the purpose ofhedging interest rate fluctuation risks and other risks generated by the liabilities of the Company.

Issuance of Additional Investment Units
The Company may issue additional investment units in a progressive manner for the purpose ofassuring stable, long-term asset growth as warranted by an accurate assessment of the market and upon
consideration of the dilution effects to existing units (reduction in equity of existing units from the issuingof new units; reduction in the per-unit net asset value or cash distribution of existing units).

Borrowings and Issuance of Corporate Bonds
I) Basic policies
The Company will seek to actively expand the size of assets and maintain stable cash distributions toinvestors by achieving an effective combination of stable long-term fund-raising and flexible shortterm fund-raising.
II) Loan to value (LTV)
Loan to value (LTV) refers to a ratio calculated as shown below and will be used as a measurementof the ratio of liabilities to total assets of the Company.
LTV = (Borrowings + Corporate bonds) / Total assets
The Company will, in principle, maintain LTV at levels of no higher than 55%, but may temporarily
exceed this level due to the acquisition of properties or changes in appraised values.
Note 1: Short-term corporate bonds are included in the corporate bonds.
Note 2: For purposes of this calculation, total assets refers to the amount shown in the assets column of the period-end balance sheet for the most recent periodprior to the calculation of LTV, and is found by adjusting the period-end book value of specified assets held by the Company (specified by Article 2,
Paragraph 1 of the Law Concerning Investment Trusts and Investment Corporations (No. 198 of 1951, including all subsequent amendments)) for thedifference between the period-end book value of the specified assets and its appraised value.

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C. PROPERTY-RELATED BUSINESS ADMINISTRATION POLICIESProperty-related business refers to property management, general tenant agency, lease manager/
construction manager services and property transfers.
This business is necessary and effective for the achievement of growth for the Company. The Company willadminister this business in accordance with the following policies.

Asset Manager and Property Manager
The growth of the Company requires integrated management by the Asset Manager (AM) and expert
management by the Property Manager (PM), with the PM overseeing the facilities management, leasing
management and construction management of individual properties.
In order to achieve more integrated management, the AM may seek the advice of third-parties regarding
leasing management and construction plans for real estate invested in. The Company initially selectedTokyo Tatemono Co., Ltd. as the party to provide this advice (the Lease Manager/Construction Manager).
The AM will select PMs with high degrees of management expertise, seek to concentrate the PMs for eachgeographical area, rigorously seek to homogenize management across the portfolio and work to maximize
unitholder profits.
The AM will compare the capabilities and merits of a number of companies in its selection of property
managers.
Existing PMs and candidates include: Tokyo Tatemono, a company that supports the AM in its leasing
management activities and refurbishment plans; PMs that operate under existing contracts of properties
acquired by the Company and possess established knowledge of tenants and locations; and other PMs.
Final selection is also based on a variety of factors such as management expertise and efforts to integrate
PMs in line with property proximity.

Commissioned General Tenant Agents
The Company will provide information related to general tenant agency services to its general tenant
agents through the property manager. Furthermore, the Company will conclude contracts to commission
general tenant agency services with Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd. and Taisei
Corporation (Commissioned General Tenant Agents) and will commission general tenant agency services to

Property Transfer Agents
The Company will conclude a contract to commission property transfer services with Tokyo Tatemono.
Tokyo Tatemono will be commissioned to provide property transfer services, as needed, in order to ensure
the smooth execution of property purchases and sales．This will not be limited to the real estate, realestate leasing rights and surface rights, but will include real estate in trust as well. Services will include
confirmation of leasing status, confirmation of building and facility maintenance and management,
confirmation and establishment of rights, preparation and confirmation of delivery and other ancillarywork.

D. OTHER INVESTMENT POLICIESThe Company will administer its assets in such a way that the ratio of the total price of designated realestate (real estate, real estate leasing rights, surface rights, or real estate in trusts for which real estate,land leaseholds, or surface rights are the entrusted assets) to the total price of designated assets ownedby the Company is 75% or more.
The Company may modify the above ratios at any time as warranted by factors such as funding trends,
market trends, general economic conditions and real estate market trends.
Lending of assets in the portfolioI) The Company may lend (for such purposes as parking space and the installation of billboards) realestate, real estate leasing rights and surface rights from among the assets listed on page 59 in "A.
Investment Policies (2) Types of investment assets" in order to more efficiently administer assets andachieve higher investment performance.
II) If the lending of real estate described in a) above results in the acceptance of leasehold and security
deposits or other similar cash funds, the acceptance of these funds will follow the guidelines listed in"B. Financial Policies (1) Fund management policies I) Leasehold and security deposits," on page 65.
III) The Company shall not lend assets other than real estate, real estate leasing rights and surface rights.

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E. DISTRIBUTION POLICIESThe Company shall make cash distributions to unitholders or eligible registered pledgees listed or registeredon the unitholders list at the end of each fiscal period, based on the following policies.

Distributable Amount

Income available for distribution by the Company (the "distributable amount") equals the amount calculated
by deducting the sum of unitholders’ capital, retained earnings and evaluation/conversion adjustments from thenet assets on the balance sheets.

2 Determining Amount of Distribution

The Company determines the amount of distribution, which must exceed 90% of the Company's distributable
income as stipulated in Article 67:15 of the Special Taxation Measures Law (Law No. 26 of 1957, including all
subsequent amendments). However, the actual amount of distribution may not exceed the distributable amount,as defined above. In addition, the Company can reserve funds for long-term repair reserves, payment
reserves, distribution reserves and similar reserves and allowances that are recognized to be necessary for
maintenance of or increasing the value of assets.

Retained Earnings

Retained earnings not distributed from the distributable amount will be allocated based on the asset
management policy of the Company.

Distribution of Cash Exceeding Earnings

In cases when the distribution is less than 90% of the distributable amount, or when the Company makes
an appropriate decision based on the trend of the economic environment, the real estate market, theleasing market or other conditions, the Company may distribute cash exceeding earnings for the relevant
period, as the sum of the distribution amount set in (2) above and the amount decided by the Company
with the upper limit of the depreciation amount reported at the end of the fiscal period. In such a case, if
the cash distribution does not meet the conditions of special tax treatments for the Company, the amountdecided by the Company for the purpose of meeting the conditions may be distributed in cash.
As long as the current tax treatment requires investors to calculate capital gains/losses each time suchinvestors receive cash distributions exceeding earnings, the Company will not conduct cash distribution
exceeding earnings to investors.
However, if the board of the Company decides that cash distributions exceeding earnings is required
to satisfy the "qualification test of distribution deductible", the distribution exceeding earnings is allowed
following the above distribution policy.

Method of Distribution

Distributions are paid in cash based on the number of investment units held to unitholders who arelisted on the final unitholders' list at the end of each fiscal period, or to eligible registered pledgees, within
three months, in principle, from the end of each fiscal period.

Extinctive Prescription

The Company will be released from its payment obligation of distributions after a lapse of three years
from the date of starting payment. No interest is payable in respect to unpaid distributions in arrears.

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Investor Information
Address of Japan Prime Realty Investment Corporation (JPR)
9-9 Yaesu 1-chome, Chuo-ku, Tokyo 103-0028, Japan

Date of Establishment
September 14, 2001

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders
More than once every two years

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

AgentsMizuho Trust & Banking Co., Ltd.
(All branches nationwide)
Mizuho Investors Securities Co., Ltd.
(Head office and all branches nationwide)

Web Site

http://www.jpr -reit.co.jp/jpr_e/index.html

Contact (Tokyo Realty Investment Management, Inc.)
Tel: +81-3-3231-1051
Fax: +81-3-3274-7775

Annual Schedule (Provisional)
Release of Business Report OctoberDecemberFiscal period ends

Cash distributions September

AugustAnnouncement of the fiscal
period results

Appropriate disclosure
on web site

June

Fiscal period ends

March
April

February

Announcement of
the fiscal period results

Cash distributions

Release of Business Report

This document contains a translation of selected information described in the Financial Statements and Performance Information Report
prepared pursuant to the Investment Trust Law of Japan and the Financial Instruments and Exchange Law, for the period from January
1, 2010 to June 30, 2010 of Japan Prime Realty Investment Corporation (JPR). This English language document was prepared solely
for the convenience of and reference by non-Japanese investors and is not intended to constitute a disclosure document. The Japanese
language Financial Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely identicalconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if
there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English documents,
the original Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.,
nor any of their respective directors, officers, employees, partners, unitholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of English translations or the selection of portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than contained in this document
in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon
as having been authorized by JPR, Tokyo Realty Investment Management, Inc., or any of their respective directors, officers, employees,
partners, unitholders, agents or affiliates. The financial statements of JPR have been prepared in accordance with generally accepted
accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions. Many provisions of this document contain information that constitute forward-looking statements.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may
differ materially from those in the forward-looking statements as a result of various factors.

68