Report on Operating and Management Results
Twenty-Seventh Fiscal Period
Semi-Annual Report
January 1, 2015 – June 30, 2015

27th

8955
Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation (JPR) is a J-REIT having one of the largest asset
holdings in Japan with a combined portfolio that is focused on office properties in Tokyo* andcomplemented by urban retail properties.
Since its listing in 2002, JPR has steadily expanded its asset size while maintaining stable cash
distributions. Going forward, JPR will endeavor to further improve the quality of its portfolio
and manage its assets so that steady growth and enhancement of unitholder value is secured as it
moves ahead.
*"Office properties in Tokyo" represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku,
Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa and Saitama
Prefectures) (the same applies throughout this report).

Features of JPR

1. Proven track record in achieving steady growth andstable management since listing

2. High-quality portfolio of assets centering on office properties
in Tokyo

3. Stable financial operations
4.

 trong support from five sponsor companies including
S
Tokyo Tatemono Co., Ltd.

Cash Distribution per Unit
Determined cash distribution (for the 27th fiscal period)¥6,419(Distribution starting on September 10, 2015)

Assets Held¥409.5 billion(End of 27th fiscal period)

Properties Owned

62 properties(End of 27th fiscal period)

Occupancy Rate at End of Period

96.7%(End of 27th fiscal period)
Olinas Tower

Contents
I. Account Highlights
1. Operating Performance Topics
2. Message from Asset Manager

3
3
4

II. Overview of JPR
1. Portfolio Growth
2. Investment Strategy
3. Operational Strategy
4. Financial Strategy
5. Initiatives on Governance
6. Initiatives on Environmental Friendliness7. Overview of Portfolio Properties
8. Structure and History of JPR
9. Overview of Asset Manager

8
8
10
12
13
14
15
16
30
31

III. Asset Management Report
1. Overview of Asset Management
2. Overview of the Investment Corporation
3. Status of JPR’s Assets Under Management
4. Capital Expenditures of Owned Real Estate
5. Expenses and Liabilities
6. Acquisitions and Sales during the 27th Fiscal Period

32
32
38
40
44
46
49

7. Overview of Accounting
8. Overview of Self-Managed Investment
		 Trust Beneficiary Certificates
9. Disclosure on Corporation Owning Foreign
		 Real Estate
10. Disclosure on Real Estate Owned by Corporation
		 Owning Foreign Real Estate
11. Other51

IV. Financial Statements(1) Balance Sheets(2) Statements of Income and Retained Earnings(3) Statements of Changes in Unitholders’ Equity(4) Statements of Cash Distributions(5) Statements of Cash Flows(6) Notes to Financial Statements(7) Detailed Schedules(8) Independent Auditor's Report(9) Other Notes (Information only)

54
54
56
57
58
59
60
69
73
74

V. Investor Information

75

52
53
53
53

1

Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko
Executive Officer

Sosuke Yasuda
Supervising Officer

Masato Denawa(From left to right) Masato Denawa, Hirohito Kaneko and Sosuke Yasuda

Supervising Officer

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 27th fiscal period (January 1, 2015 – June 30, 2015) at the end of June 30, 2015,
we renew our heartfelt appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio overthe medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

2I. Account Highlights

Japan Prime Realty Investment Corporation

1. Operating Performance Topics(All amounts in millions of yen unless otherwise stated)

23rd Fiscal Period 24th Fiscal Period 25th Fiscal Period 26th Fiscal Period 27th Fiscal Period
ended
ended
ended
ended
ended
June 2013
December 2013
June 2014
December 2014
June 2015
Operating revenues

13,27813,591

13,734

13,902

14,251

Ordinary income

4,975

4,899

5,073

5,239

5,566

Net income

4,974

4,954

5,072

5,238

5,603

Total cash distributions

4,975

4,954

5,073

5,239

5,603

Total assets

409,715

413,974

414,104

414,091

418,778

Total unitholders' equity

197,116

197,095

197,213

197,378

216,092

48.1

47.6

47.6

47.7

51.6

Unitholders' equity per unit (yen)238,929

238,903

239,046

239,246

247,529

Cash distribution per unit (yen)

6,031

6,006

6,150

6,351

6,419

Equity ratio (%)

Operating Revenues andNet Income

Total Assets andTotal Unitholders' Equity

15,000500,000

12,000400,000

Cash Distribution per Unit

8,000

6,000

300,000

9,000

4,000
6,000

200,000

3,000

100,000

2,000

0

23rd
FiscalPeriod24th
FiscalPeriod25th
FiscalPeriod26th
FiscalPeriod27th
FiscalPeriod0

23rd
FiscalPeriod24th
FiscalPeriod25th
FiscalPeriod26th
FiscalPeriod27th
FiscalPeriodOperating Revenues (million yen)

Total Assets (million yen)

Net Income (million yen)

Total Unitholders' Equity (million yen)0

23rd
FiscalPeriod24th
FiscalPeriod25th
FiscalPeriod26th
FiscalPeriod27th
FiscalPeriodCash Distribution (yen)3

I. Account Highlights

2. Message from Asset Manager

Satoshi Okubo
President and Chief Executive Officer (CEO)Tokyo Realty Investment Management, Inc.
(the Asset Manager of JPR)

Distribution per unit grew steadily toward the medium-term target of 6,500 yen,backed by the internal growth ability through improved occupancy rates and higher
rent levels.
We will work to achieve stable growth over the long term as we continue our efforts to“maximize unitholder value.”1

Distribution per Unit for the 27th Fiscal Period Ended June 2015

With our continued endeavors for strategic leasing, we achieved an increase in cash distributions for the fiscal period
under review.
Achieved a period-on-period increase for three consecutive periods throughimproved occupancy rates and higher rent levels
(yen)
6,500

6,351

6,250

6,419

6,150
6,031

6,000

6,006

0
23rd Period
ended Jun. 20134

24th Period
ended Dec. 2013

25th Period
ended Jun. 2014

26th Period
ended Dec. 2014

27th Period
ended Jun. 2015

Japan Prime Realty Investment Corporation2

Issuance of New Investment Units through Public Offering Conducted in the 27th
Fiscal Period

JPR’s property acquisition capacity was expanded as a result of issuing new investment units through public offeringin the fiscal period under review.
Going forward, we will work on vigorously selective investments in blue-chip properties by dynamically utilizing theacquisition capacity.

Overview of Issuance of New Investment
Units through Public Offering

Expansion of Acquisition Capacity

Number of new❶ investment units issued 48,000 units●(Dec. 2014)

After issuing newinvestment units

32.0 billion yen▶ 65.0 billion yen

End of 26th period● Issue price❷394,875 yen❸ Paid-in amount●382,320 yen❹ Procured amount●18.3 billion yen (●❶╳●❸)❺ Payment date●June 16, 2015▶

Growth potential
Purpose of▶
public offering
for the future

Anticipate steady growth of cash
distributions through internal growth
Achieved increase in cash distributionsfor 3 consecutive fiscal periods

26th period(ended Dec. 2014)

6,351 yen▶

27th period(ended Jun. 2015)

6,419 yen(up 68 yen)▶

28th period(ending Dec. 2015)

6,510 yen(up 91 yen)▶

29th period(ending Jun. 2016)

6,550 yen▶

Internal
growth+External
growth(utilizing acquisition capacity)(up 40 yen)
(Forecast)(Forecast)(up 201 yen)
Aim to achieve a new round of growth through external
growth utilizing the acquisition capacity
5

I. Account Highlights

We Appreciate Your Visiting JPR’s New Website.
http://www.jpr-reit.co.jp/en/

8955(securities code)

The design and composition of the website has been totally renewed so that visitors find it easier to view and can use it
more comfortably.

Point 2

Point 4
Point 36

Japan Prime Realty Investment Corporation

Point 1For Retail Investors(Japanese only)

JPR’s history to date, characteristics, strategies and otheraspects are provided in “For Retail Investors” in eightcategories.

Point 2

Property Overview

Features of the owned properties are explained, withmore photos of their external and internal views as wellas their specifications, revenues and expenses and floor
plans. In addition, access maps have been newly added,
which allow the visitors to search the routes to properties
from the nearest stations.

Point 3

Briefing Sessions and Events

Not only the latest press releases but also notices ofbriefing sessions and events, starting dates of cash
distribution payments and other JPR-related information
are disclosed in a proactive manner.

Point 4

Digest of Financial Results

A digest version (movie) of JPR’s management status
explained at the financial results briefing session isprovided.

7II. Overview of JPR

1. Portfolio Growth
Occupancy Rate at End of Period (%)
100

96.3

94.1

95

93.5

93.4

93.2

92.7

95.4

95.1

97.2

98.6

98.0

99.0

98.4

97.5

90
85

Asset Size, etc. and Results of Distributions per Unit (billions of yen)
400
Office properties in Tokyo

Office properties in Other Cities

Retail properties

350

300
275.1

197.6

200

202.6

209.2

179.6
139.6

125.7
100

0

92.1

94.5

40.1

41.5

38.8

39.7

13.2

13.2

100.1

47.9

47.9
38.2

38.2

33.2

114.7

43.1

43.1

43.1

93.9

93.9

96.1

100.1

57.5

39.7

40.7
12.5
14.9
13.2

99.2

43.9

135.7

108.2

91.2

77.4

52.7

222.4

100.1

163.6
150

50

251.9

245.3

250

40.4

48.3

45.2

45.2

50.0

57.2

63.8

45.2

77.0

Nov. 16, 2001 End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun.
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
Start of
1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period
management

Number of
13
properties
Total number
133
of tenants
Leasable floor
94,935space (m2)Distribution–
per unit (yen)

25

27

30

32

38

42

42

42

44

46

48

49

50

281

311

324

357

437

496

459

441

462

479

491

517

537

162,739

168,987

201,808

218,734

256,329

273,330

281,408308,205

315,156

337,382

361,574

373,609383,491

2,545

6,912

6,873

5,738

6,081

6,671

6,370

6,411

6,509

6,873

6,996

6,671

7,122

Property Diversification
Retail in Tokyo
15.5%

Retail 23.2%

Retail in Other Cities
7.7%
Office in Other Cities
9.2%

Target investment ratio by area
Tokyo:
80 - 90%
Other Cities: 20 - 10%

Other Cities Tokyo
16.9% 83.1%

Target investment ratio by asset class
Office in Tokyo
67.6%

Office 76.8%

8

Portfolio Management Standards

Office: 70 - 90%
Retail: 30 - 10%(Note) 	The figures in the graph to the left show the investment ratios, which represent the ratiosof the total acquisition price of properties in respective categories to the total acquisition
price of the entire portfolio, rounded to the first decimal place.

Japan Prime Realty Investment Corporation

96.4

96.8

96.4

95.5

93.5

94.7

95.6

94.1

94.9

96.9

96.5

97.8

97.0

96.7

404.7

404.7

405.5

409.5

391.9

398.6

259.2

265.8

271.9

271.9

272.7

276.7

259.2

380.9
341.5

341.5

344.9

331.2
299.4

310.6

280.6

141.6

39.4

99.5

172.9

184.1

209.5

219.8

219.8

223.2

31.1

31.1

26.5

26.5

26.5

26.5

26.5

37.5

37.5

37.5

37.5

37.5

37.5

95.3

95.3

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun.
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2015
2015
14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period 22nd Period 23rd Period 24th Period 25th Period 26th Period 27th Period

52

51

53

55

56

56

57

58

59

60

62

62

62

62

499

476

476

460

479

493

501

502

534

564

610

628

632

647

383,215

393,532

400,751

410,326

420,544421,371423,311434,340

450,943

460,452

467,207467,175

468,232

457,007

7,092

3,731

6,933

6,770

5,680

5,611

5,876

6,430

6,093

6,031

6,006

6,150

6,351

6,419

(Note 1) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.
(Note 2)	The number of tenants at end of period is counted as follows: 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.
(Note 3) 	For Shinjuku Square Tower, each compartmentalized owner leases respective exclusive space to Tokyo Tatemono Co., Ltd. in a lump sum, and Tokyo Tatemono subleases the space tosublessees. Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted space of offices, shops and warehouses that are leased by Tokyo Tatemono andcan be sublet, by JPR’s rent distribution rate, while the leased floor space for calculating the occupancy rate is calculated by multiplying the floor space sublet to sublessees by the 1tribution
rate. Both figures are rounded to the second decimal place. The rent distribution rate as of the end of the 27th fiscal period was 64.88799%. In addition, the number of sublessees is deemed tobe the number of tenants for the building.
(Note 4) 	The tenants of Shinjuku Center Bldg., the residential section of Science Plaza – Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements
have been executed where the rent paid by the tenants fluctuates in accordance with the lese conditions of the sublessee. Accordingly, the total leasable floor space and the occupancy rate ofthese buildings indicate those for the sublessees of the tenants, and the number of the sublessees is deemed as the number of their tenants.
(Note 5) 	When the contracted floor space and the floor space for calculating rents differ, the latter was treated as the leased floor space through the 10th fiscal period. Since the 11th fiscal period,
however, the contracted floor space has been used as the leased floor space.
(Note 6) The occupancy rate at end of period has been rounded to the first decimal place.
(Note 7) The total leasable floor space has been rounded off to the nearest integer.

9II. Overview of JPR

2. Investment Strategy
JPR is resolved to continuously work on investment focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investment in retailproperties as well as office properties in regional cities that are expected to generate relatively high yields.

Focusedinvestment in
office properties
in Tokyo

Vigorously
selective
investment inretail properties
as well as officeproperties inregional cities

Improve the quality of the portfolio by making investment focused on office properties inTokyo that are expected to contribute to long-term growth
Compared with other regional cities, Tokyo allows expectations for more stable occupancy andhigher rent levels, and is believed to offer larger rooms for an increase of rents when the leasing
market shows a recovery trend. Looking ahead, JPR will continue to make investment focused on
office properties in Tokyo, with an aim to further improve the quality of its portfolio and enhance its
growth potential in the recovery cycle of the market.

For retail properties as well as office properties in regional cities, work to invest in strictly
selected blue-chip properties that can keep stable revenues at a certain level
While securing growth potential by making focused investment in office properties in Tokyo, JPR will
make vigorously selective investment in urban retail properties with long-term, fixed-rent contracts
and in large office properties in regional cities having a high competitive advantage in the areas, inorder to complement the stability of earnings from the entire portfolio.

Changes in Investment Ratios by Asset Class and Area
Over the last five years, JPR made investments in 9 office properties in Tokyo totaling 67.2 billion yen (acquisition
price), enhancing the quality of its portfolio.
End of 1st Fiscal Period (June 30, 2002)

End of 27th Fiscal Period (June 30, 2015)
Retail in
Other Cities
7.7%
Office in
Other Cities
9.2%

Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

Office in
Tokyo
43.5%

Retailin Tokyo
15.5%

Increase in investment ratio
of office properties in Tokyothrough focused investment:

Officein Tokyo

67.6%+24.1%(Note) 	The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

Portfolio Management Standards of JPR

10

Target investment ratio by area

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

Office: 70 - 90%
Retail: 30 - 10%

Japan Prime Realty Investment Corporation

In the for-sale real estate market, transactions of blue-chip properties have been rather limited. Given
the situation, JPR will work to invest in blue-chip properties by fully implementing various acquisition
strategies based on its high sourcing abilities while utilizing sponsor support.
Utilization of sponsor
support from the Fuyo
Group companies
including Tokyo
Tatemono

Supply of blue-chip properties among office properties in Tokyo is inadequate in the for-salereal estate market, and their acquisition opportunities are rather limited.

Investment strategies
based on diversified
property acquisition
methods and highsourcing abilities

To acquire properties from third parties other than the sponsors, JPR exercises its highsourcing abilities and takes advantage of various information channels to make access to
wide-ranging property information.

JPR will take advantage of support from Tokyo Tatemono Co., Ltd. and other sponsors tosecure opportunities to invest in blue-chip properties at reasonable price levels without being
exposed to excessive competition in the market.

For properties with co-ownership or compartmentalized ownership, JPR implements
various methods to acquire properties, including acquisition of additional equity by utilizing
preferential negotiation rights.

Cases in which JPR Acquired Properties by Utilizing Sponsor Support
JPR has displayed its strength of having sponsors comprising real estate developers, a general contractor and financial
institutions in acquiring blue-chip properties.
<Sponsors>

The Otemachi Tower(Land with Leasehold Interest)

Yakuin Business GardenTokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance

The Otemachi Tower (Land with
Leasehold Interest) was acquired froman SPC in which Tokyo Tatemono andTaisei Corporation had equity interests.

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

Japan Prime Realty
Investment Corporation(securities code: 8955)

Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its
sponsors, etc.(Note) and that of properties acquired fromthird parties (total of properties acquired based on theinformation provided by the sponsors and those acquired
other than from the sponsors, etc.) are almost equal,
standing at 49.8% for the former and 50.2% for the latter(on an acquisition price basis).
JPR will work to increase property acquisition
opportunities and conduct vigorously selective investment
in blue-chip properties by building sourcing abilities on
its own instead of depending solely on sponsor support.
(Note)	Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment.

Transactions with third parties

50.2%

Properties acquired
other than fromsponsors, etc.

30.7%
19.5%

Properties
acquired fromsponsors, etc.

49.8%

Properties acquired
based on information
provided by sponsors

11II. Overview of JPR

3. Operational Strategy
JPR endeavors to implement its leasing strategies focused on maintaining and increasing the occupancyrate, with an aim to keep revenues from the portfolio stable in a continuous manner.

Organizational
reinforcement ofleasing activities

Tokyo Realty Investment Management, Inc. (TRIM) has established a group that supervises leasing,which implements leasing strategies that are based on property characteristics. Endeavors arebeing exerted to enhance the leasing framework by not only reinforcing coordination with property
management companies but also receiving support on leasing and obtaining market information frommajor brokerage firms, so that JPR can provide lease terms and conditions that take into account themarket conditions, accelerate decision-making and take other measures to strengthen leasing.

Maintenanceand improvementof tenantsatisfaction

TRIM periodically conducts questionnaire surveys to tenants, and works to improve tenantsatisfaction by grasping comments, requests and other feedback from tenants and promptly
responding. By doing so, TRIM aims to prevent move-outs of existing tenants and encourage themto expand office spaces in the same buildings or the upward revision of rents, so as to secure stableearnings of JPR over the medium to long term.

Strategic valueenhancement
works

TRIM has established a group dedicated to construction management, environmental friendlinessand other matters, reinforcing its endeavors on the promotion of higher energy efficiency, responses
to business continuity plans and environmental awareness and other initiatives that are strongly
requested by society. In addition, while working to enhance NOI and tenant satisfaction, TRIM
strategically conducts value enhancement works that should strengthen competitive advantages ofproperties as well as help attract tenants.

Changes in Occupancy Rate
Endeavors to reinforce leasing activities and enhancetenant satisfaction successfully generated results, withthe period-average occupancy rate continuing to rise
since the 23rd fiscal period. The figure stood at 97.5%
in the 27th fiscal period, remaining at a high level.

（%）
98.0
96.0
94.0

Period-Average Occupancy Rate

96.9% 97.0% 97.2%
95.0% 94.8%
94.4%
93.6% 94.0%

95.6%

92.0
18th
PeriodExamples of Renewal Works

97.5%

19th
Period20th
Period21stPeriod22nd
Period23rd
Period24th
Period25th
Period26th
Period27th
Period(Dec. 2010) (Jun. 2011) (Dec. 2011) (Jun. 2012) (Dec. 2012) (Jun. 2013) (Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015)

JPR has been strategically conducting value enhancement works that should lead to invitation of new tenants andimprovement in tenant satisfaction.
Examples of works conducted in the 27th fiscal period include renewal works at Shinjuku Center Bldg. and
Kawaguchi Center Bldg., centering on refurbishment of interior furnishings at the common areas of each floor andenhancement of energy efficiency. At Shinjuku Center Bldg., polyvinyl chloride floor tiles were replaced with carpet
tiles to enhance the high-grade atmosphere, which consequently helped improve customer satisfaction. At Kawaguchi
Center Bldg., energy efficiency was improved through such measures as replacing lighting in the entrance hall with
LED lamps.
Refurbishment of interior furnishings in the common
areas at Shinjuku Center Bldg.
Before12

After

Replacement of lighting fixtures with LED lamps in theentrance hall of Kawaguchi Center Bldg.
BeforeAfterJapan Prime Realty Investment Corporation

4. Financial Strategy
In the 27th fiscal period, JPR procured 18.3 billion yen by issuing new investment units through public
offering and used the proceeds to repay borrowings, while making further efforts to lengthen the maturityof debts and diversify repayment dates. With such stable and sound financial operations, JPR has
established a strong and solid financial base.

Overview of Issuance of New Investment Units through Public Offering (conducted in June 2015)
JPR conducted public offering in order to lower the ratio of interest-bearing debts to total assets and expand theacquisition capacity through debt financing
Number of new
investment units issued
Paid-in amount(purchase price)

48,000 units
382,320 yen per unit

Gross proceeds(total purchase price)

18,351 million yen▶

Ratio of interest-bearing debts to total assets (left axis)
Acquisition capacity (right axis)

(%)
50

46.6%

Effects(billion yen)70

65.0 billion yen

45

35
42.1%
28.0 billion yen

40

Before public Offering(May 31, 2015)

0

After public Offering(June 30, 2015)(Note)	Acquisition capacity represents an estimate figure for the debt procurement
capacity until the ratio of interest-bearing debts to total assets reaches 50%.

Financial Status
JPR maintains high, AA-rank credit ratings, with recognition given to its stable and sound financial operations.
[Status of Corporate Credit Ratings Assigned to JPR]

[Major Financial Indicators]

Ratio of interest-bearing
debts to total assets
Ratio of long-term, fixedinterest rate debts

End of 26th
Period(Dec. 31, 2014)

End of 27th
Period(Jun. 30, 2015)

46.1%

42.1%

98.2%

99.4%

Issuer rating(Outlook)

Rating firm

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

S&P

AA- (Stable)
Long-term:A (Stable)

Short-term:

A-1(Standard & Poor's Ratings Japan K.K.)

Changes in Average Maturity of Debts and Average Debt Cost
Making the best use of the favorable fund procurement environment, JPR is working to lengthen the maturity ofdebts, as exemplified by its borrowing of ten-year loans, and reduce the debt cost.
[Reference]

Refinance in 27th period

Average debt cost (left axis)
(%)
1.8
1.6

Average debt cost

Average maturity of debts (right axis)

1.04 %
1.62

1.57

1.44

7.0

Average maturity of debts

6.0

9.7 years

5.0

1.53

1.4

(years)(Note) Short-term loans payable are excluded.

1.27
1.2

4.0
1.21

3.3
years

3.4
years

3.5
years

3.8
years

3.9
years

4.0
years

22nd Period(Dec. 2012)

23rd Period(Jun. 2013)

24th Period(Dec. 2013)

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

0

3.0

0

13

II. Overview of JPR

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

Highly Independent Board Composition❚❚   At JPR, the executive officer as well as the supervising
officers have no concurrent assignment as officer of
TRIM so as to firmly secure the independence of JPR, theinvestment corporation.

Executive Officer:❚❚   The JPR officers comprise attorneys and a certified public
accountant with various experiences and high expertise, whohave a thorough knowledge of the REIT industry as well.

Supervising Officer: Masato Denawa (attorney)

Members of the Board of JPR

Hirohito Kaneko (attorney)

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

Shareholder Composition of TRIM
real estateTokyo Tatemono

real estate

Shareholding ratio:

40%

Taisei Corporation

Yasuda Real Estate

Shareholding ratio:

20%

20%

Shareholding ratio:

financefinance

Meiji Yasuda Life Insurance

Shareholding ratio:

construction

10%(Asset Manager)
Tokyo Realty Investment
Management, Inc.

Sompo Japan Nipponkoa Insurance Inc.

10%

Shareholding ratio:

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

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager
Special member(outside attorney)

14

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

Investment Management Department

Review, screening

Compliance Subcommittee

Decision on acquisition policy

Investment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Final decision on acquisition
Decision making on acquisition
over certain amountConclude agreement

Compliance Committee
JPR’s Board of Directors
Investment Subcommittee

TRIM’s Board of Directors

Acquisition

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

Japan Prime Realty Investment Corporation

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

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

Properties withexceptionally highenvironmental &social awareness

Properties
with highenvironmental &social awareness

Olinas Tower Yakuin Business
GardenJPR Crest
BYGS Shinjuku
Takebashi Bldg.
Bldg.

DBJ Green Building Certification

Properties
with excellent
environmental &social awareness

JPR Ueno
East Bldg.

JPR Sendagaya Shinagawa
Bldg.
Canal Building

Properties
with sufficientenvironmental &social awareness

JPR Nihonbashi
Horidome Bldg.

Rise Arena
Bldg.

Omiya Prime
East

Yume-ooka
Office Tower

Kanematsu Oval Court Ohsaki
Bldg.
Mark West

DBJ awards five levels of certification to office buildings in accordance with the degree ofenvironmental and social awareness they demonstrate.

Continuous Participation in GRESB Survey❚❚   JPR has participated in the GRESB Survey, which analyzes and evaluatesenvironmental considerations and sustainability, since 2011. In the survey
conducted in 2014, JPR was designated as “Green Star,” the highest
ranking of the four evaluation categories.
❚❚   JPR believes that its endeavors have been recognized as a result of
having diligently worked to reduce energy consumption by establishinga consistent system among all business partners involved in building
operations, from the Asset Manager to property managers and building
maintenance companies, under a clear environmental policy as well as asking
for cooperation with tenants.

GRESB, which stands for Global Real
Estate Sustainability Benchmark, isa benchmark system for analyzing
and evaluating sustainability interms of environmental friendlinessand social nature. It is based on
surveys conducted by a private
sector group established primarily
by major pension funds in Europe.

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

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

Property Name

Location

Acquisition Date

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

4.0

8,029.47

3.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

5.8

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

3.7

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.37

4.4

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

1.0

3,265.34

7.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.7 14,468.38

6.8

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,241.22

7.3

Oct. 15, 2003

1,800

0.4

Apr. 15, 2005

1,120

0.3

1,937.40

5.2

2,920

0.7

A-8

Fukuoka Bldg.

Chuo-ku, Tokyo

Total
A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,224.32

4.9

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.9

4,088.44

3.5

Jul. 2, 2004

10,0002.4

Sep. 26, 2008

180

0.0

Mar. 25, 2015

4,000

1.0

17,947.61

1.3

15,216.93

3.1

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

OfficeTotal

14,1803.5

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.2

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,121

3.7

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

0.2

1,253.39

4.7

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

21,0005.1

8,863.98

1.3

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

Jul. 14, 2008

3,760

0.9

3,405.73

6.0

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

Dec. 19, 2008

1,870

0.5

1,700.57

5.3

A-17

Rokubancho Bldg.

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.7

2,488.36

7.7

A-18

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

2.1

4,760.09

6.8

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.3

3,551.01

6.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.2

5,299.89

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.7

6,177.74

2.6

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,899.27

4.5

A-23

The Otemachi Tower (Land with
Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.8 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.27

3.1

Dec. 6, 2013

3,420

0.8

800

0.2

5,401.46

5.6

4,220

1.0

A-25

Shibadaimon Center Building

Minato-ku, Tokyo

Jul. 30, 2014
Total

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0002.9

8,076.85

5.8

A-2

JPR Daikanyama

Shibuya-ku, Tokyo

Oct. 5, 2004

2,160

0.5

651.2912.5

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

1,027.33

5.4

2,347.81

1.6

1,101.92

3.0

53.1 154,200.91—

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

Mar. 24, 2006

4,275

1.0

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,740

0.7

3,400

0.8

Total
A-5

Yurakucho Ekimae Bldg. (Yurakucho
Itocia)Subtotal

Chiyoda-ku, Tokyo

Aug. 27, 2008

¥217,406(Note 1) The table above shows properties owned by JPR as of June 30, 2015.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.

16

PML (%)

A-1

Total

RetailAcquisitionPrice(in millions)Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.4

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.6

5,536.17

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

6.7

Sep. 25, 2002

920

0.2

570

0.1

5,284.75

10.5

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

1,490

0.4

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

2.0 15,420.09

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.8

6,490.05

3.9

Sep. 30, 2005

888

0.2

2,300

0.6

4,683.40

4.1

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

3,188

0.8

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.4

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.6 11,974.67

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,300

7.6 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.7

6,494.09

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.5

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.5 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,260

1.8 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.1 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,0803.7 12,116.35

5.9¥122,891

30.0 189,757.45—

AcquisitionPrice(in millions)

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

PML (%)

Total

RetailPercentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

B-1

Total

OfficeAcquisitionPrice(in millions)

Subtotal

Other Cities (15 Properties)
Property
NumberOfficeRetailProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,326.88

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,163.07

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,568.43

0.5
5.7

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.8

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.12

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.7

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,930.71

5.0

C-18

JPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 11, 2004

1,920

0.5

3,290.42

0.8

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.7 16,654.33

1.6

May 15, 2003

8,000

2.0
1.2 18,586.97

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

4.3

Total

13,0003.2

C-3

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.3

5,303.98

11.5

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.8 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.5

2,485.79

8.4

Subtotal¥69,223

16.9 131,049.43

—

Total

¥409,520

100.0 475,007.79

2.0(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the second decimal place.
Furthermore, as the company revised its evaluation method to analyze the risk of earthquakes in October 2014, the indicated figures have also been revised accordingly.

17

II. Overview of JPR

Portfolio Map
A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-4
A-12

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

Tokyo

A-21
Shibuya Ward

A-5

Ichigaya

A-23

Harajuku

A-3
A-1

Shinbashi

A-18

A-2 A-1

A-13

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

Chuo Ward

A-25

Shibuya

A-20
A-3

Minato Ward

Hamamatsucho

A-2

TamachiA-15

GotandaA-6
Shinagawa

A-7

A-16

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

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

A Central Tokyo
Chiyoda Ward
Chuo Ward

18

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

■ A-1
■ A-2
■ A-3
■ A-4
■ A-5

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

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

Musashiurawa

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

Minamiurawa
Kawaguchi

B-6
B-3

SAITAMA

Matsudo

CHIBA

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9
Shinjuku

Tachikawa

B-11
B-1

Ueno

Funabashi

B-7

Kinshicho

Tokyo

Shibuya

Chiba

B-2

ShinagawaMusashikosugi

B-4

Musashikosugi

KANAGAWA
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

Retail
■ B-1
■ B-3
■ B-4
■ B-5

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

B-3

Kamiooka

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

OSAKA

Retail
■ C-1
■ C-3
■ C-4
■ C-5

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

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

C-9

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

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
WAKAYAMA

C-13

19

II. Overview of JPR

Property Acquired in the 27th Fiscal Period

A-11

Shinjuku Square Tower (additional ownership)
Shinjuku Ward, Tokyo

JPR realized additional acquisition of a blue-chip office property
in central Tokyo by utilizing the preferential negotiation rights
among co-owners.

1. Property Overview
Location22-1 Nishishinjuku 6-chome, Shinjuku-ku, Tokyo

Total Site Area 8,409.52 m2 (for the entire redevelopment project)

Total Floor Space

78,796.00 m2 (for the entire redevelopment project)

Structure/Floors

S, RC, SRC B4/30F

Completion

October 1994

Property Manager

Tokyo Tatemono Co., Ltd.

2. Transaction Summary
SellerSumitomo Life Insurance Company

Acquisition Price¥4,000 million

Appraisal Value¥4,580 million (as of March 1, 2015)

Acquisition DateMarch 25, 2015

3. Assumed Income
NOI Yield

4.4 %CentralPark
The entrance with a sense of spaciousness

Shinjuku
Exit

/
Line
ew ay
N
Keio i SubwLine
Toe njuku
Shi
Line
Keio

JR Chuo Line
JR Ya
mano
te LinSeibu
Shinjuku
Sta.

Shinjuku
Nishiguchi
Sta.
Shinjuku
Sta.

Shinjuku
Sta.
Shinjuku
Sta.
Shinjuku
Sta.

Odakyu Line

Tokyo Metropolitan
Government OfficeedoToei Subway O Line

Junis
o-do
ri S
t.

A courtyard full of greenery

Sinjuku Front
Tower
Shinjuku Grand
NarukoTower
Sakashita
Nishi-Shinjuku
NarukoSta.
Tenjinshita
Om
I-Town Shinjuku Square
eK
To
aid
Tower
ky
M
o
Hiltonaru M o St.
Greenno etr
Tokyo
uc o
Tower
hi
Lin
Shinjuku CentraleKumanoPark North
Shrine Mae
Tocho-mae
Toei
Subw
Sta.
ay Oedo Linee(Note)	The NOI yield of the property has been calculated by dividing the assumed income for 12months based on the rent level, the occupancy rate and other factors upon acquisition, by
the acquisition price.

An 8 to 9-minute walk from Nishishinjuku Station on the Tokyo Metro
Marunouchi LineA 7 to 8-minute walk from Nishishinjuku 5-chome Station on the Toei
Subway Oedo Line
Common area space with ample room and comfort

20

Japan Prime Realty Investment Corporation

Portfolio Properties
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price¥2,874 million
Site Area
Total Floor Space

679.06 m2
4,351.46 m2

Structure/Floors

SRC B1/8F
CompletedFebruary 1993
Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price¥2,100 million
Site Area
Total Floor Space
Acquisition Price¥16,276 million
1,751.13 m

2

14,995.09 m

2

Total Floor Space

A-4

4,117.70 m2

Structure/Floors

Structure/Floors

Site Area

550.06 m2

SRC/RC B1/8F

S/RC/SRC B2/13F
Completed

Completed

December 1989

February 1993

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

A-6

Chiyoda Ward, TokyoMS Shibaura Bldg.
Minato Ward, Tokyo

Acquisition Price¥2,420 million
Site Area
Total Floor Space

657.80 m2
5,152.98 m2

Structure/Floors

SRC B1/9F
Completed

October 1984
Property Manager

Tokyo Tatemono Co., Ltd.

A-5

JPR Crest Takebashi Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed¥4,000 million
636.90 m2
4,790.68 m2
SRC B1/9F
September 1999

Acquisition Price
Site Area

Property Manager

Tokyo Tatemono Co., Ltd. (Note)(Note) Changed from Yasuda Real Estate Co.,
Ltd. as of September 1, 2015

Structure/Floors¥11,200 million
Total Floor Space

8,992.18 m2
2

31,020.21 m

SRC/RC/S B2/13F
CompletedFebruary 1988
Property Manager

Tokyo Tatemono Co., Ltd.

21

II. Overview of JPR

Portfolio Properties
Central Tokyo
A-7

OfficeRetailGotanda First Bldg.

A-8

Shinagawa Ward, Tokyo

Fukuoka Bldg.
Chuo Ward, Tokyo

Acquisition Price

Acquisition Price¥2,920 million
Site Area

1,551.19 m
Total Floor Space

¥2,920 million
Site Area

2

Total Floor Space

10,553.34 m2

Structure/Floors

SRC/RC B2/11F

SRC B2/10F
Completed

July 1989

May 1990

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ichigaya Bldg.

Tokyo Tatemono Co., Ltd.

A-10

Chiyoda Ward, Tokyo

Oval Court Ohsaki Mark West
Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price¥3,500 million¥5,100 million
Site Area

1,058.04 m
Total Floor Space

Site Area

2

Total Floor Space

5,888.82 m2

4,006.00 m2
28,575.80 m2

Structure/Floors

Structure/Floors

S/SRC B2/17F

SRC B1/9F
Completed

Completed

June 2001

March 1989
Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

A-11

11,627.74 m2

Structure/Floors

Completed

A-9

1,302.17 m2

Shinjuku Square Tower

A-12

Shinjuku Ward, TokyoBYGS Shinjuku Bldg.
Shinjuku Ward, Tokyo

Acquisition Price¥10,180 million
Site Area

28,409.52 m (entire redevelopment project)
Total Floor Space
78,796.00 m2 (entire redevelopment project)
Structure/Floors
S/RC/SRC B4/30F
Completed

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

A-13

Across Shinkawa Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price¥710 million
Site Area
Total Floor Space

858.48 m2
5,535.90 m2

Structure/Floors

S/SRC B2/10F
Completed

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

22

Acquisition Price

Structure/Floors¥15,121 million
Site Area

2

SRC B2/14F
Completed

3,522.46 m
Total Floor Space

25,733.10 m

2April 1985
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-14

OfficeRetailShinjuku Center Bldg.

A-15

Shinjuku Ward, Tokyo

Minami Azabu Bldg.
Minato Ward, Tokyo

Acquisition Price¥3,760 million
Site Area
Total Floor Space

778.09 m2
4,570.63 m2

Structure/Floors

S

9F

Completed

June 1992
Property Manager

Tokyo Tatemono Co., Ltd.

A-16

Shinagawa Canal Bldg.
Minato Ward, Tokyo

Acquisition Price¥1,870 million
Site Area
Total Floor Space
Acquisition Price

Structure/Floors¥21,000 million
Site Area

2
2

SRC/RC/S B5/54F

A-17

S

Completed

October 1979

July 2008
Property Manager

Tokyo Tatemono Co., Ltd.

Rokubancho Bldg.

Tokyo Tatemono Co., Ltd.

A-18

Chiyoda Ward, TokyoJPR Harajuku Bldg.
Shibuya Ward, Tokyo

Acquisition Price

Acquisition Price¥2,800 million
Site Area¥8,400 million
Site Area2

716.95 m
Total Floor Space

Total Floor Space

4,205.09 m2

Completed

October 1991

March 1989

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Kyobashi Bldg.

Tokyo Tatemono Co., Ltd.

A-20

Chuo Ward, Tokyo

JPR Nihonbashi-horidome Bldg.
Chuo Ward, Tokyo

Acquisition Price

Acquisition Price¥5,100 million¥5,250 million
2

Site Area

547.10 m
Total Floor Space

6,466.94 m2
SRC B1/9F

SRC B3/7F
Completed

Site Area

1,205.07 m2

Structure/Floors

Structure/Floors

A-19

B1/8F

Completed

Property Manager

176,607.89 m

5,216.21 m2

Structure/Floors

14,917.11 m
Total Floor Space

828.82 m2

4,419.79 m2

Total Floor Space

937.59 m2
7,190.82 m2

Structure/Floors

Structure/Floors

SRC B1/9F

SRC/S B1/10F
Completed

Completed

June 2002

January 1981
Property Manager

Tokyo Tatemono Co., Ltd.

Property Manager

Tokyo Tatemono Co., Ltd.

23

II. Overview of JPR

Portfolio Properties
Central Tokyo
A-21

OfficeRetailJPR Sendagaya Bldg.

A-22

Shibuya Ward, Tokyo

Ginza Sanwa Bldg.
Chuo Ward, Tokyo

Acquisition Price¥3,400 million
Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F
Completed

October 1982
Property Manager

Mitsubishi Jisho Property Management Co., Ltd.

A-23

Acquisition Price

Chiyoda Ward, Tokyo

Structure/Floors¥15,050 million
Site Area

2,217.49 m
Total Floor Space2
2

7,683.19 m

A-24

The Otemachi Tower (Land with Leasehold Interest)

S 8F
CompletedMay 2009
Property Manager

Tokyo Tatemono Co., Ltd.

Science Plaza - Yonbancho Plaza
Chiyoda Ward, Tokyo
Acquisition Price¥2,660 million
Site Area

5,289.01 m2

Total Floor Space

24,560.36 m2

Structure/Floors

S/SRC/RC B2/12F
CompletedFebruary 1995
Property Manager

Nomura Real Estate Partners Co., Ltd.(Note)(Note) Changed from Yasuda Real Estate Co.,
Ltd. as of September 1, 2015

A-25

Shibadaimon Center Building

Acquisition Price
Site Area–
Completed

Total Floor Space

11,034.78 m2–

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

A-2

Minato Ward, Tokyo

Structure/Floors¥36,000 million

JPR Daikanyama
Shibuya Ward, Tokyo

Acquisition Price¥4,220 million
Site Area
Total Floor Space2¥2,160 million

1,915.50 m

Site Area

11,419.93 m2

Total Floor Space

S/SRC B1/10F

Structure/Floors

Structure/Floors
Completed

July 1993
Property Manager

Nomura Real Estate Partners Co., Ltd.(Note)(Note) Changed from Yasuda Real Estate Co.,
Ltd. as of September 1, 201524

Acquisition Price

277.12 m2
668.09 m2
RC B2/2F

Completed

July 2002
Property Manager

Jones Lang LaSalle K.K.

Japan Prime Realty Investment Corporation

Central Tokyo
A-1

OfficeRetail/ Greater Tokyo Office Retail

JPR Shibuya Tower Records Bldg.

A-3

Shibuya Ward, TokyoJPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price¥4,275 million
Site Area

198.10 m2

Total Floor Space

1,066.81 m2

Structure/Floors

S/SRC B1/7F
CompletedFebruary 2006
Property Manager

Jones Lang LaSalle K.K.

A-4

Shinjuku Sanchome East Bldg.
Shinjuku Ward, Tokyo

Acquisition Price¥2,740 million
Site Area

2,578.69 m2

Total Floor Space
Acquisition Price¥12,000 million
Site Area

1,010.47 m

28,449.56 m

2

Total Floor Space

A-5

S/SRC/RC B3/14F

SRC/S B3/8F

Completed

Completed

January 2007

February 1992

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

B-1

Chiyoda Ward, Tokyo

Arca East
Sumida Ward, Tokyo

Acquisition Price

Acquisition Price¥5,880 million¥3,400 million
Site Area

24,617.65 m2

Structure/Floors

Structure/Floors

Site Area

23,755.01 m2

6,808.12 m
Total Floor Space

Total Floor Space

71,957.65 m2

34,281.86 m2

Structure/Floors

Structure/Floors

S/SRC B3/19F

S/SRC B4/20F
Completed

Completed

March 1997

October 2007
Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

B-2

JPR Chiba Bldg.

B-3

Chiba City, Chiba

Acquisition Price¥2,350 million
Site Area

2

1,382.35 m
Total Floor Space

9,072.57 m2

Structure/Floors

S/SRC B1/13F
Completed

January 1991
Property Manager

Tokyo Tatemono Co., Ltd.

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price¥2,927 million
Site Area
Total Floor Space

1,100.59 m2
9,146.52 m2

Structure/Floors

SRC B1/11F
Completed

October 1989
Property Manager

Tokyo Tatemono Co., Ltd.

25

II. Overview of JPR

Portfolio Properties
Greater Tokyo
B-5

OfficeRetail

Shinyokohama 2nd Center Bldg.

Kawaguchi Center Bldg.

B-6

Yokohama City, Kanagawa

Kawaguchi City, Saitama

Acquisition Price

Acquisition Price¥1,490 million
Site Area (Note)

841.71 m
Total Floor Space

¥8,100 million
Site Area

24,524.61 m2

Total Floor Space

7,781.93 m2

Structure/Floors

S/SRC B2/12F

S/SRC B2/15F

Completed

Completed

August 1991

B-7

February 1994

Property Manager

Property Manager

Nomura Real Estate Partners Co., Ltd.

Nomura Real Estate Partners Co., Ltd.

JPR Ueno East Bldg.

Tachikawa Business Center Bldg.

B-8

Taito Ward, Tokyo
Acquisition Price
Site Area

Tachikawa City, Tokyo

Acquisition Price¥3,250 million¥3,188 million
Site Area

1,242.97 m2

Total Floor Space
Structure/Floors
Completed

2,047.22 m2

2

8,490.44 m

Total Floor Space

S/SRC B1/8F

Structure/Floors

October 1992

Completed

December 1994

Jones Lang LaSalle K.K. (Note)

Property Manager(Note) C hanged from Yasuda Real Estate Co.,
Ltd. as of September 1, 2015

Rise Arena Bldg.

Tokyo Tatemono Co., Ltd.

B-11

Toshima Ward, Tokyo
Acquisition Price
Site Area

14,706.36 m2
S/SRC B1/12F

Property Manager

B-928,420.85 m2

Structure/Floors

Olinas Tower
Sumida Ward, Tokyo¥5,831 million
29,377.28 m (entire redevelopment project)

Total Floor Space

91,280.94 m2 (including residential tower)

Structure/Floors

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

Completed

January 2007

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

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

B-10

Yume-ooka Office Tower
Yokohama City, Kanagawa

Acquisition Price¥6,510 million
Site Area
Total Floor Space

12,011.00 m2
185,974.87 m2

Structure/Floors

Structure/Floors

S/SRC/RC B3/27F

Completed

27,335.29 m2 (entire site area)

Total Floor SpaceMarch 1997
Property Manager

Tokyo Tatemono Co., Ltd.

SRC/RC/S B2/45F (Note)¥31,300 million
Site Area

Completed

26

Acquisition Price

2257,842.41 m(includes commercial tower and residential tower)

Property Manager

February 2006

Tokyo Tatemono Co., Ltd.

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

Japan Prime Realty Investment Corporation

Greater Tokyo
B-12

OfficeRetailTokyo Tatemono Yokohama Bldg.

B-13

Yokohama City, Kanagawa

Omiya Prime East
Saitama City, Saitama

Acquisition Price

Acquisition Price¥7,000 million
Site Area¥6,090 million
Site Area

2

1,110.28 m
Total Floor Space

8,772.51 m
Structure/Floors

SRC B1/9F

S 9F
CompletedMay 1981

February 2009

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tanashi ASTA

Tokyo Tatemono Co., Ltd.

B-3

Nishitokyo City, Tokyo

Cupo-la Main Bldg.
Kawaguchi City, Saitama

Acquisition Price

Acquisition Price¥10,200 million
Site Area¥2,100 million
Site Area

2

12,326.30 m
Total Floor Space2

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

80,675.27 m2

Structure/Floors

48,321.96 m2

Structure/Floors

SRC B2/17F

S/RC/SRC B2/10F

Completed

CompletedFebruary 1995

January 2006

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

B-4

9,203.98 m2

Structure/Floors

Completed

B-1

2,268.09 m2

Total Floor Space

2

JPR Musashikosugi Bldg.

Tokyo Tatemono Co., Ltd.

B-6

Kawasaki City, Kanagawa

Kawasaki Dice Bldg.
Kawasaki City, Kanagawa

Acquisition Price¥7,260 million
Site Area

4,761.62 m2

Total Floor Space

18,394.32 m2

Structure/Floors

SRC/RC/S B1/6F
Completed

March 1983
Property Manager

Tokyo Tatemono Co., Ltd.

B-5

Musashiurawa Shopping Square
Saitama City, Saitama
Acquisition Price¥4,335 million
Site Area
Total Floor Space

8,317.99 m2
28,930.36 m2

Structure/Floors

S B1/4F
Completed

October 2005
Property Manager

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

Acquisition Price

Structure/Floors¥15,080 million
Site Area

4,475.45 m2

Total Floor Space

36,902.01 m

2

S/SRC/RC B2/11F
Completed

August 2003
Property Manager

Tokyo Tatemono Co., Ltd.

27

II. Overview of JPR

Portfolio Properties
Other Cities
C-1

OfficeRetailNiigata Ekinan Center Bldg.

C-4

Niigata City, Niigata

Tokyo Tatemono Honmachi Bldg.
Osaka City, Osaka

Acquisition Price

Acquisition Price¥2,140 million
Site Area¥4,150 million
Site Area

22,706.99 m
Total Floor Space

Total Floor Space

19,950.42 m2

Structure/Floors

14,619.52 m2

Structure/Floors

S/SRC B1/10F

SRC B3/9F

Completed

Completed

March 1996

February 1970

Property Manager

Property Manager

Jones Lang LaSalle K.K.

C-7

1,432.64 m2

JPR Hakata Bldg.

Tokyo Tatemono Co., Ltd.

C-9

Fukuoka City, Fukuoka

JPR Naha Bldg.
Naha City, Okinawa

Acquisition Price¥2,900 million
Site Area
Total Floor Space

Acquisition Price¥1,560 million

2

1,214.63 m

Site Area

9,828.73 m2

Total Floor Space

S/SRC B1/12F

Structure/Floors

Structure/Floors

June 1985
expansion in November 2003

Completed

October 1991

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Sompo Japan Sendai Bldg.

Tokyo Tatemono Co., Ltd.

C-13

Sendai City, Miyagi

Sompo Japan Wakayama Bldg.
Wakayama City, Wakayama

Acquisition Price

Acquisition Price¥3,150 million
Site Area¥1,670 million
Site Area

2

1,895.67 m
Total Floor Space

Total Floor Space

10,783.52 m2

Structure/Floors

SRC B1/12F

S 9F

December 1997

July 1996
Property Manager

Tokyo Tatemono Co., Ltd.

Tenjin 121 Bldg.

Tokyo Tatemono Co., Ltd.

C-17

Fukuoka City, Fukuoka

Acquisition Price

JPR Dojima Bldg.
Osaka City, Osaka

Acquisition Price¥2,810 million
2¥2,140 million
Site Area

1,164.39 m
Total Floor Space

8,690.95 m2

Structure/Floors

Total Floor Space668.11 m2
5,696.01 m2

Structure/Floors

S/SRC 13F
Completed

SRC B2/9F
Completed

July 2000
Property Manager

Tokyo Tatemono Co., Ltd.

28

6,715.07 m2

Completed

Property Manager

Site Area

1,128.45 m2

Structure/Floors

Completed

C-14

5,780.71 m2
SRC/S 12F

Completed

C-12

959.87 m2

October 1993
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities
C-18

OfficeRetailJPR Hakata-Chuo Bldg.

C-19

Fukuoka City, Fukuoka

JPR Nagoya Fushimi Bldg.
Nagoya City, Aichi

Acquisition Price

Acquisition Price¥4,137 million¥1,920 million
Site Area

Site Area2

680.63 m
Total Floor Space

Total Floor Space

3,874.81 m2

10,201.44 m2

Structure/Floors

Structure/Floors

SRC B1/9F

SRC 8F
Completed

Completed

March 1991

February 1993
Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

C-1

1,610.38 m2

JPR Umeda Loft Bldg.

C-20

Osaka City, Osaka

Yakuin Business Garden
Fukuoka City, Fukuoka

Acquisition Price¥10,996 million
Site Area
Total Floor Space

4,348.43 m2
22,286.35 m2

Structure/Floors

SRC 14F
Completed

January 2009
Property Manager

Tokyo Tatemono Co., Ltd.

C-3

Benetton Shinsaibashi Bldg.
Osaka City, Osaka
Acquisition Price¥5,430 million
Site Area
Total Floor Space609.31 m2
5,303.98 m2

Structure/Floors
Acquisition Price
Site Area

3,518.68 m2

Total Floor SpaceC-4

S B2/10F

Structure/Floors¥13,000 million

17,897.56 m2

SRC B1/8F

CompletedFebruary 2003
expansion in January 2005

Completed

April 1990

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe

C-5

Kobe City, Hyogo

Acquisition Price

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price¥7,220 million
Site Area2¥6,000 million
Site Area

3,994.47 m
Total Floor Space

33,877.71 m2

Structure/Floors

Total Floor Space592.45 m2
3,219.36 m2

Structure/Floors

SRC/S B2/11F
Completed

S/SRC 9F
Completed

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

29

II. Overview of JPR

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

Corporate History
Date

Description

September 6, 2001

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the investment corporation under Article69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)

September 14, 2001

Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act

November 16, 2001

Started asset management (acquisition of real estate beneficiary interests in trust for 13 underlying trust assets comprising 11
office properties and 2 retail properties) (¥40,730 million in total)

January 22, 2002

Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act

June 14, 2002

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

Structure of JPR

Administrative Agent forEnvironment-Related Laws andRegulations

40%

20%

20%

10%

10%

Tokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents

Tokyo Tatemono Co., Ltd.

Japan Prime Realty
Investment Corporation

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

Loans / Issue
of Investment
Corporation
Bonds

Asset
Management
Property

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

Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager

Cash
Distribution

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Entrustment of Entrustment ofgeneralasset custodyadministration

30

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Japan Prime Realty Investment Corporation

9. Overview of Asset Manager
Overview
Name
Business Description
Capitalization

Shareholder
Composition (Note 1)

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

Corporate History

April 28, 2000

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

October 13, 2000
March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

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

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Compliance Committee(Compliance Subcommittee)
Compliance Office

Investment Management
Division

Financial DivisionCorporate Planning /Administration Division

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

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

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

1. Overview of Asset Management

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

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

Unit

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

Million yen

23rd Fiscal
Period(Jan. 1, 2013 Jun. 30, 2013)13,278Million yen

6,893

Million yen
Million yen
Million yen
Million yen
Million yen

13,278

6,208
6,385
4,975
4,974

24th Fiscal
Period(Jul. 1, 2013 Dec. 31, 2013)
13,591

25th Fiscal
Period(Jan. 1, 2014 Jun. 30, 2014)
13,73426th Fiscal
Period(Jul. 1, 2014 Dec. 31, 2014)
13,90227th Fiscal
Period(Jan. 1, 2015 Jun. 30, 2015)
14,251

7,223

7,308

7,425

7,554

13,591

6,534
6,368
4,899
4,954

13,734

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

13,902

6,733
6,477
5,239
5,238

14,251

6,845
6,697
5,566
5,603

Million yen

409,715

413,974

414,104

414,091

418,778

Million yen

187,158

191,759

191,190

191,024

176,458(-0.0)(-0.0)(+0.1)(+0.1)%

Million yen%(+1.9)

197,116(+1.0)

197,095(+0.0)

197,213(-0.0)

197,378(+1.1)

216,092(+9.5)

Million yen

192,044

192,044

192,044

192,044

210,395

%

100.0

100.0

100.0

100.0

100.0

Million yen

Units

4,975

5,239

5,603

825,000

825,000

825,000

873,000

6,031

6,006

6,150

6,351

6,419

238,929

Yen

6,031

Yen

5,073

825,000

Yen
Yen

4,954

238,903
6,006

239,046
6,150

239,246
6,351

247,529
6,419

－

－

－

－

－

%

1.2

1.2

1.2

1.3

1.3

%

2.5

2.5

2.6

2.7

2.7

%

5.1

5.0

5.2

5.3

197,168

197,116

197,095

197,213

48.1

47.6

47.6

47.7

(-0.9)(-0.5)(+0.0)(+0.0)

%

45.7

46.3

46.2

46.1

Times

6.3

6.1

6.5

7.2

Million yen

8,163

8,149

8,167

8,223

Million yen

1,304

1,325

1,259

1,142

%

4.5

4.4

4.5

4.4

Million yen

8,359

8,080

8,287

8,303

%

4.2

4.0

4.1

4.1

%

Million yen%

Million yen

2.5

8,953

60

m2
%

564

460,452.47

96.9

2.4

8,925

62

610

467,207.05
96.5

2.5

8,968

62

628

467,175.54
97.8

2.5

9,010

62

632

468,232.24
97.0

2.7

5.5

197,378
51.6(+3.9)
42.1

7.9

8,531
1,073
9,260

4.6

8,599

4.2
62

647

475,007.79

96.7(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debts / total assets at end of period x 100(Note 5) Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Net income - gain on sale of real estate + loss on sale of real estate + loss on sale of investment securities + extraordinary loss + interest expenses (includinginterest expenses on investment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing / property acquisition price (23rd fiscal period: ¥398.64 billion, 24th fiscal period: ¥404.72 billion, 25th fiscal period: ¥404.72
billion, 26th fiscal period: ¥405.52 billion and 27th fiscal period: ¥409.52 billion)

32

32

Japan Prime Realty Investment Corporation

Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 23rd fiscal period: 181 days, 24th fiscal period: 184 days,
25th fiscal period: 181 days, 26th fiscal period: 184 days and 27th fiscal period: 181 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shibadaimon Center Bldg., Shinjuku Sanchome East Bldg.,
Shinyokohama 2nd Center Bldg., Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but are calculated as one
property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded off to the first decimal place).

(2) 27th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts
and Investment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate
Investment Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. Subsequently, JPR
conducted public offerings and other equity financing measures, with the number of investment units issued and outstanding
totaling 873,000 units at present. JPR has assigned the asset management of its portfolio to Tokyo Realty Investment
Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize unitholder value by efficiently managing
the portfolio primarily comprising office properties and retail properties.
2) Management Environment
The Japanese economy remained on a modest recovery trend during the 27th fiscal period, with capital investment and consumer
spending observed to pick up. Corporate performances took a favorable turn, given the yen’s exchange rate on a weaker side
under the influence of the additional monetary easing the Bank of Japan initiated last year. An increase in the number of inboundtourists visiting Japan also had a positive impact on the economy.
The Office Property Leasing Market
The supply and demand balance in the office property leasing market of the 23 wards of Tokyo further improved due to new
demand for such positive development as setting up new offices, expanding the office spaces and moving to better locations
continuing to be strong, which steadily absorbed the newly-supplied office spaces. Given this situation, the upward swing of therent levels for new contracts is increasingly spreading through the entire market.
The Retail Property Leasing Market
Tenant’s needs to open stores remained to be strong for urban retail properties in which JPR targets to invest. Rents continued toincrease for urban retail properties in good locations, such as Ginza, Omotesando and Shinsaibashi, where consumption by
inbound foreign tourists is anticipated.
The For-Sale Real Estate Market
Transactions by REITs remained at a high level, centering on acquisitions of properties from their sponsors, as they made initialpublic offerings and public offerings one after another against the backdrop of a favorable fund procurement environment.
Moreover, competition over transactions in the market has become more intensified as the market participants become
increasingly diversified, including foreign investors, causing the property transaction price to be formed at an even higher level.
There is also a notable expansion of investment targets, such as investing in projects located in regional cities and investigating
development projects.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality and stabilizing earnings of the portfolio while paying attention tobalancing diversification of the portfolio, both in terms of location and asset type.
During the 27th fiscal period, JPR acquired Shinjuku Square Tower (additional acquisition) at the acquisition price of 4.0 billion
yen. As a result, the balance of assets under management totaled 62 properties, or 409.5 billion yen on an acquisition price basis,
as of the end of June 2015, with the total leasable floor space standing at 475,007m2 and the number of tenants reaching 647.
Operational Management of Portfolio
In the office property leasing market in the 27th fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving
occupancy rates. As a result, the occupancy rate stood at 96.7% at the end of the fiscal period, still remaining at a high level
although the figure decreased 0.3 points from the 97.0% at the end of the 26th fiscal period due to move-outs of certain large
tenants.

33
33

III. Asset Management Report

In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR
continued to proactively implement value enhancement works based on tenant needs with the aim to create spaces where theworkers feel satisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning
systems and replacement of lighting equipment in the common areas with LED lamps, which are expected to be effective for theendeavor, at its multiple properties.
In addition, JPR is continuously working to obtain environmental certifications (the DBJ Green Building Certification*1 and therecognition by GRESB*2). In the 27th fiscal period, JPR applied for the DBJ Green Building Certification for another property inits portfolio, which is being examined, and worked to obtain GRESB assessment (2015 survey).
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet thevarious social requirements surrounding real estate from stakeholders (“Green Buildings”)*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estatecompanies, REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a groupof the same name composed of more than 50 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in conservative financial operations, working to control the ratio of interest-bearing debts to total assets (Note 1)
largely at 50% at a maximum.
In debt financing, JPR continued to maintain financial stability by conducting bank borrowings at long-term fixed interest rates
with an eye on reducing risks of rising interest rates while remaining attentive to the diversification of repayment dates, etc.
JPR established a commitment line with credit limit of 28 billion yen in order to reduce refinancing risks and secure stable fundprocurement.
In the 27th fiscal period, JPR procured 18.3 billion yen in total through issuing new investment units (refer to (3) Additional

Offerings, etc. below) with the aim of raising funds to repay borrowings and expand the acquisition capacity with debts. All theproceeds obtained from the issuance of new investment units were used to repay borrowings. In addition, JPR refinanced 18.0
billion yen in total for loans and investment corporation bonds upon maturity, and borrowed 4.0 billion yen in total in long-termloans payable for property acquisition. As a result, the balance of total outstanding borrowings as of the end of the fiscal period
was 134.9 billion yen, with investment corporation bonds of 41.5 billion yen.
As of the end of the 27th fiscal period, JPR had the ratio of interest-bearing debts to total assets of 42.1%, long-term and fixed interest-bearing
debt ratio (Note 2) of 99.4%, average debt cost (Note 3) of 1.21%, and average maturity (Note 4) of 4.0 years.

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, 2015
Credit Rating Agency
Rating and Investment Information, Inc.
Standard & Poor's Ratings Japan K.K.

Corporate Credit Rating
AA- (Stable)
Long-term: A (Stable)
Short-term: A-1(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporationbond management expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 27th fiscal period to the repayment deadlines for all
interest-bearing debts based on the balance of each interest-bearing debt.

34
34

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 27th fiscal period.
Date

Event

September 14, 2001

Established by private placement

January 22, 2002

Split of investment units

November 16, 2001
June 14, 2002
July 15, 2003

August 9, 2003

February 1, 2005
March 1, 2005

February 6, 2007
March 7, 2007

February 8, 2010
March 12, 2010
July 30, 2012

August 29, 2012
June 16, 2015
June 24, 2015
(Note 1)

Additional private placement

Number of Units
Outstanding

Variation
240

Balance240

93,360155,600

134,400

424,000

62,000Initial public offering

134,000

Third-party allotment

Additional public offering

1,373

5,000

530,000

5,000

625,000

8,000

715,000

8,580

825,000

2,300

873,000

Additional public offering

82,000Additional public offering

101,420

Additional public offering

45,700Third-party allotment

31,120430,000

90,000Third-party allotment－

31,0006,000

Additional public offering

Third-party allotment

Balance120

25,86295,000Third-party allotment

Variation
120

289,600

Additional public offering
Third-party allotment

62,240Unitholders' Capital(millions of yen)

30,758Remarks(Note 1)

31,120(Note 2)

56,982(Note 4)87,740(Note 3)(Note 5)

89,113(Note 6)

115,431(Note 8)2,173

156,725(Note 10)

1,299

171,339(Note 12)

1,614

192,044(Note 14)879

210,395(Note 16)

525,000

25,001620,000

39,120707,000

13,315

816,420

19,089870,700

17,472

1,315

114,115

154,552
170,040
190,429

209,516(Note 7)(Note 9)(Note 11)

(Note 13)

(Note 15)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment

Management, Inc. (40 units) at 500,000 yen per unit.

(Note 2)

An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in real estate trust and started(Note 3)

A single investment unit was split into 2.5 units.

(Note 5)New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to repay short-term debts,(Note 6)

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

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

(Note 4)(Note 7)

management.

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

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

(Note 9)New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to repay debts, acquire new(Note 10)

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

(Note 11)

(Note 12)(Note 13)

specific assets, etc.

New investment units were issued through a public offering at 168,101 yen per unit (underwriting price of 162,382 yen per unit) to repay short-term debts,

redeem investment corporation bonds, acquire new specific assets, etc.

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

acquire new specific assets, etc.

New investment units were issued through a public offering at 194,610 yen per unit (underwriting price of 188,222 yen per unit) to partly fund acquisition of

new specific assets and repay debts.

(Note 14)

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

(Note 16)

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

(Note 15)

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

35
35

III. Asset Management Report(4) Cash Distributions
With regard to the cash distributions, JPR decided to distribute part of the retained earnings brought forward that had been internallyreserved through the 26th fiscal period, with the aim of having the profit distributions deducted as expenses based on application of
the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation) andin order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result, the cash distribution perunit came to 6,419 yen for the 27th fiscal period.

Fiscal Period

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

23rd Fiscal
Period24th Fiscal
Period25th Fiscal
Period26th Fiscal
Period27h Fiscal
Period(Jan. 1, 2013 Jun. 30, 2013)(Jul. 1, 2013 Dec. 30, 2013)(Jan. 1, 2014 Jun. 31, 2014)(Jul. 1, 2014 Dec. 31, 2014)(Jan. 1, 2015 Jun. 31, 2015)

4,998,468

4,976,931

5,094,946

5,259,866

5,623,366

22,893

21,981

21,196

20,291

19,579Internal Reserves

4,975,575

4,954,950

5,073,750

5,239,575

5,603,787(Cash Distribution per Unit)(6,031 yen)

(6,006 yen)

(6,150 yen)

(6,351 yen)

(6,419 yen)

Total Cash Distributions from Net Income

4,975,575

4,954,950

5,073,750

5,239,575

5,603,787(Cash distribution from net income per unit)(6,031 yen)

(6,006 yen)

(6,150 yen)

(6,351 yen)

(6,419 yen)

－

－

－

－

－

(- yen)(- yen)(- yen)(- yen)(- yen)Breakdown

Total Cash Distributions

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy is expected to remain on the track of modest recovery, given the continued improvement trendof the employment and income environments and positively affected by the drop in crude oil prices as well as corporate
performances that are bolstered by the weaker yen. Caution should be taken, however, to the risks that may push the Japanese
economy downward, such as a downside swing of the overseas economies.
In the office property leasing market, the market situation in general is likely to show a further recovery amid continued improvementin the supply and demand condition, while polarization by property will keep progressing. In this regard, JPR believes it will be able
to fully enjoy the positive impact of the market recovery as it has focused on improving tenant satisfaction through proactive
implementation of value enhancement works and provision of elaborate management services. In addition, when conducting realestate transactions in the market where polarization of earnings by property is anticipated to further advance, it will become evenmore important to discern the growth potential of earnings of respective properties. Considering the situation in which cap rates are
decreasing in a low interest rate environment, it is required to firmly keep the attitude of vigorously selective investment for
implementing real estate investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve the quality of its portfolio
and enhance its growth potential in the recovery cycle of the market. Real estate transactions remain brisk, as a decrease inpurchase cap rate and expected cap rate levels has been observed in the transaction market along with the recovery in the officeproperty leasing market conditions. For office properties in Tokyo in particular, there are deals closed at prices that have factored
in rent increases in accordance with the economic recovery. Accordingly, JPR will fully investigate the growth potential of suchproperties when acquiring them. As for retail properties as well as office properties in regional cities, JPR will work to invest in
strictly selected blue-chip properties that can keep stable revenues at a certain level in order to complement the stability ofearnings from the entire portfolio. JPR will strive to acquire new properties under reasonable terms by negotiating prices based on
detailed market studies and property due diligence in considering properties.
JPR will continue to make investment decisions after a proactive collection of information through such sources as sponsors of
the Asset Manager, accurately grasping market trends and carefully researching investment value, including the future potential ofcandidate properties.
Moreover, JPR will continue to investigate asset replacement, centering on properties that do not allow us to expect sustainablegrowth in the future or those that may be sold under favorable terms and conditions.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants,
encourage them to expand office spaces in the same buildings and renew contracts with upward revision of rents through36
36

Japan Prime Realty Investment Corporation

endeavors to enhance tenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically,
JPR will conduct management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate
decision making- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs(6) Fund Procurement
JPR's fundamental policy for fund procurement calls for an efficient combination of long-term steady fund procurement andshort-term fund procurement that emphasizes dynamism. In line with this policy, JPR will procure funds through unsecured andunguaranteed bank borrowings as well as the issuance of investment corporation bonds. JPR will continue to focus on thediversification of fund procurement means and consistently 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 theTokyo Stock Exchange. JPR is proactively employing its website (http://www.jpr-reit.co.jp/en/) as a vital means for implementing
voluntary disclosure and, in the 27th fiscal period, renewed the website in order to further enrich the information it provides andenhance the usability, among other purposes. Going forward, we are committed to further enriching the disclosure contents andproviding information in a timely manner.

(8) Significant Subsequent Events
No relevant items.

37
37

III. Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital

Total number of authorized units
Total number of units issued andoutstanding

23rd Fiscal Period
as ofJune 30, 2013
5,000,000

24th Fiscal
Period as ofDecember 31, 2013
5,000,000

25th Fiscal
Period as of June30, 2014
5,000,000

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

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

825,000

825,000

825,000

825,000

873,000

192,044

192,044

192,044

192,044

210,395

13,965

12,877

12,425

11,836

15,689Unitholders' capital (millions ofyen)
Total number of unitholders(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 27th fiscal period.
Name

Address

56,7236.49

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

29,3003.35

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

29,115

3.33

577 Matsushima, Kurashiki-shi, Okayama

25,0002.86

1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)

16,816

1.92

14,761

1.69

13,2681.51

462,24252.94

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

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

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

Tokyo Tatemono Co., Ltd.

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

Meiji Yasuda Life Insurance Company

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

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

State Street Bank West Client Treaty (Standing Proxy:
Settlement & Clearing Services Division, Mizuho Bank, Ltd.)
Nomura Bank Luxembourg S. A. (Standing Proxy: Sumitomo
Mitsui Banking Corporation)
State Street Bank West Pension Fund Clients Exempt(Standing Proxy: Settlement & Clearing Services Division,
Mizuho Bank, Ltd.)

Percentage of Total

Units Outstanding (%)
21.40

Japan Trustee Services Bank, Ltd. (Trust Account)

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

Number of

Owned Units
186,835

Batiment A, 33, rue de Gasperich, L-5826,
Luxembourg(1-2-3 Otemachi, Chiyoda-ku, Tokyo)

1776 Heritage Drive, North Quincy, MA 02171
U. S. A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)

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

66,4247.60

24,0002.74(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 27th fiscal period are as follows.
Position

Name

Executive Officer

Hirohito Kaneko

Supervising
Officers (Note 1)

Sosuke Yasuda

Independent
Auditor (Note 2)

Masato Denawa

Ernst & Young
ShinNihon LLC

Other Current Assignments
Representative Counsel, Hirohito Kaneko Law Office
Advisor, Gyosei Audit Corporation
Group representative partner, GYOSEI Certified
Public Tax & Accountants’ Co.
Outside Auditor, MS&AD Insurance Group Holdings

Total Directors' Fee
during the 27th Fiscal
Period (thousands of yen)
2,400

4,200

Partner Attorney, Spring Partners－

Numberof Owned
Units
－

－

－
16,600－(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 preparation of comfort letters for additional
issuance of new investment units.

38
38

Japan Prime Realty Investment Corporation

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 27th fiscal period are as follows.
Outsourcing Category
Asset management company

Name
Tokyo Realty Investment Management, Inc.

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

Mizuho Trust & Banking Co., Ltd.

Asset custodian

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Trust & Banking Co., Ltd.
Mizuho Bank, Ltd.

39
39

III. Asset Management Report

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset TypeArea
Central Tokyo

Real estate

Greater Tokyo

26th Fiscal Period(as of December 31, 2014)

Assets owned by JPR(thousands of yen)
79,435,093

Percentage of total
assets (%)
19.2

Assets owned by JPR(thousands of yen)
79,182,734

21,546,427

5.2

21,367,962

58,865,744

Other Cities

Real estate in trust
Deposits and otherassetsCentral Tokyo

133,519,662

Other Cities

43,801,624

Greater Tokyo

Total assets

－

14.2

58,479,210

32.2

137,634,395

10.6

43,733,460

52,555,983

12.7

24,367,034
(－)

5.9
(－)

414,091,570（389,724,535）－

27th Fiscal Period(as of June 30, 2015)

100.0(94.1)

Percentage of total
assets (%)
18.9

14.0

5.1

32.9

52,214,251

12.5

26,166,855
(－)

6.2
(－)

10.4

418,778,869(392,612,013)

100.0（93.8）(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheet as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).

(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the endof the 27th fiscal period.

Property Name
Otemachi Tower (Land with
Leasehold Interest)
Olinas Tower

Shinjuku Center Bldg.
BYGS Shinjuku Bldg.
JPR Sendagaya Bldg.
Kanematsu Bldg.

Kawasaki Dice Bldg.

Shinjuku Square Tower
JPR Umeda Loft Bldg.

JPR Shibuya Tower Records
Bldg.
Total

Book Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Asset Class38,388,259

11,034.78

11,034.78

100.0

12.1

Office28,594,112
22,216,775
15,572,750
15,064,494
14,693,093
13,952,262
12,881,120
12,583,381

23,987.40
8,863.98
15,216.93
6,177.74
8,029.47
12,116.35
17,947.61
18,586.97

23,987.40
8,532.39
14,884.79
6,177.74
6,404.98
12,116.35
17,310.84
18,586.97

100.0
96.3
97.8
100.0
79.8
100.0
96.5
100.0

7.3
3.4
3.7
1.9
2.1
3.0
2.4
2.8

Office11,564,936

8,076.85

8,076.85

100.0

2.5

Retail185,511,185

130,038.08

127,113.09

97.8

41.3

OfficeOfficeOfficeOfficeRetailOfficeRetail(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.

(Note 2) The tenants of Shinjuku Center Bldg., Kawasaki Dice Bldg. and Shinjuku Square Tower have sublet space to a sub-lessee and a lease agreement has been

executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor
space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessee of the tenant.

4040Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 27th fiscal period (June 30, 2015).

Area Type

Property Name
Kanematsu Bldg.

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

Central Tokyo

OfficeShinjuku Square Tower
BYGS Shinjuku Bldg.

Across Shinkawa Bldg. Annex

JPR Harajuku Bldg.

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

Rokubancho Bldg.

JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

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

Retail2-9, etc., Rokubancho, Chiyoda-ku, Tokyo

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

JPR Shibuya Tower Records Bldg.

6-1 Ginza 4-chome, Chuo-ku, Tokyo
6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Tokyo
9-6, etc., Yonbancho, Chiyoda-ku, Tokyo
10-11 Shibadaimon 1-chome, Minato-ku,
Tokyo
22-14 Jinnan 1-chome, Shibuya-ku, TokyoJPR Jingumae 432

32-13 Jingumae 4-chome, Shibuya-ku, Tokyo

Shibadaimon Center Bldg.
JPR Daikanyama

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

JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
Office17-5 Kyobashi 2-chome, Chuo-ku, Tokyo
17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo
3-3 Kojimachi 4-chome, Chiyoda-ku, Tokyo
21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo
13-23 Shibaura 4-chome, Minato-ku, Tokyo
8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
8-7 Yaesu 2-chome, Chuo-ku, Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Shinagawa Canal Bldg.

Shinjuku Center Bldg.
Minami Azabu Bldg.

JPR Ueno East Bldg.

Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East

Retail14-1 Kyobashi 2-chome, Chuo-ku, Tokyo

16-14 Shinkawa 1-chome, Chuo-ku, Tokyo
25-1 Nishi-Shinjuku 1-chome, Shinjuku-ku,
Tokyo
12-3 Minami-Azabu 2-chome, Minato-ku,
Tokyo
12-33 Konan 2-chome, Minato-ku, Tokyo

Tokyo Tatemono Kyobashi Bldg.

Greater Tokyo

Location

Tanashi ASTA

Cupo-la Main Bldg.
JPR Musashikosugi Bldg.

20-5 Daikanyamacho, Shibuya-ku, Tokyo

1-26, Shinjuku 3-chome, Shinjuku-ku, Tokyo
7-1 Yurakucho 2-chome, Chiyoda-ku, Tokyo

Form ofOwnership

Book Valueas of June 30,
2015(thousands of yen)Appraisal Valueas of June 30,
2015(thousands of yen)

Beneficiary interest

14,693,093(Note)
12,400,000

Beneficiary interest

1,951,580

2,390,000

Beneficiary interest

2,503,085

3,010,000

Beneficiary interest

3,332,378

Beneficiary interest

11,078,956

11,300,000

Beneficiary interest

2,644,014

Beneficiary interest

3,007,445

2,940,000

Beneficiary interest

5,263,495

Beneficiary interest

2,965,809

4,540,000

Beneficiary interest

12,881,120

12,100,000

Real estate

15,572,750

14,500,000

Real estate

22,216,775

13,500,000

Real estate

3,891,699

2,540,000

Real estate

1,772,850

1,770,000

Beneficiary interest

8,739,526

7,350,000

Beneficiary interest

Real estate

Real estate
Real estate

2,420,353

603,605

2,864,168
5,357,060

2,240,000

2,910,000
2,170,000
4,780,000

828,000

3,230,000
5,760,000

Beneficiary interest

4,927,014

Real estate

15,064,494

11,000,000

Beneficiary interest

38,388,259

42,300,000

Beneficiary interest

Real estate

3,633,381

6,140,000
3,450,000

2,705,669
4,247,966

3,000,000

Beneficiary interest
Beneficiary interest

11,564,936

13,600,000

Beneficiary interest

4,319,688

3,640,000

Real estate
Real estate

2,186,307
2,673,217

4,970,000
1,560,000
2,690,000

Real estate

3,346,422

2,910,000

Beneficiary interest

4,422,775

6,220,000

Beneficiary interest

2,569,164

2,390,000

Beneficiary interest

1,462,182

1,640,000

Beneficiary interest

7,056,099

7,530,000

38-5 Akebonocho 2-chome, Tachikawa, Tokyo
Real estate
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Real estateTokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Real estate
Yokohama, Kanagawa
1-3 Taihei 4-chome, Sumida-ku, Tokyo
Real estate
5-10 Kitasaiwai 1-chome, Nishi-ku,
Real estate
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Beneficiary interest
Saitama, Saitama
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
Beneficiary interest

2,926,233

3,120,000

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

1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba
17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama
3-5 Matsugaya 1-chome, Taito-ku, Tokyo

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

Beneficiary interest

Real estate

Real estate
Real estate

2,329,631

3,026,505

1,700,000

4,350,000

5,422,081

7,350,000

5,593,598

5,740,000

28,594,112

34,500,000

6,907,768

7,530,000

6,086,703

6,850,000

7,527,666

13,100,000

7,133,444

5,340,000

1,801,699

2,630,00041
41

III. Asset Management Report

Area Type

Property Name
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.

Other Cities

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

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

Form ofOwnership

Location
3-1 Bessho 7-come, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
6-12 Hakataeki-mae 2-chome, Hakata-ku,
Fukuoka, Fukuoka
24-15 Sakae 1-chome, Naka-ku, Nagoya, Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
16-7 Chayamachi, Kita-ku, Osaka, Osaka
2-11 Minami-Senba 4-chome, Chuo-ku, Osaka,Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo
2-19 Chayamachi, Kita-ku, Osaka, Osaka

Book Valueas of June 30,
2015(thousands of yen)Appraisal Valueas of June 30,
2015(thousands of yen)

3,881,532

Beneficiary interest

13,952,262(Note)
4,090,000

Beneficiary interest

1,710,042

2,330,000

Beneficiary interest

4,129,226

3,280,000

Beneficiary interest

3,054,653

2,750,000

Beneficiary interest

Beneficiary interest

15,100,000

1,369,461
2,228,552

1,370,000

Beneficiary interest
Beneficiary interest

1,405,028

1,640,000

Beneficiary interest

2,170,484

2,290,000

Beneficiary interest

2,162,876

2,280,000

Beneficiary interest

1,832,825

1,700,000

Real estate

4,020,144

3,470,000

2,920,000

Real estate

10,952,177

13,000,000

Beneficiary interest

12,583,381

13,700,000

Beneficiary interest

5,118,774

Real estate

6,395,639

6,660,000

Beneficiary interest

5,968,151

392,612,013

4,390,000

5,470,000

401,948,000(Note) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

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

Area Type

Property Name

Kanematsu Bldg.

Kanematsu Bldg. Annex

1

100.0

(Note 2)

(Note 2)0

Shin-Kojimachi Bldg.

15

94.2

96,9890.7

16

MS Shibaura Bldg.

7

72.9

330,889

2.4

9

JPR Ningyo-cho Bldg.

JPR Crest Takebashi Bldg.
Gotanda First Bldg.

OfficeCentral Tokyo

4
6
2

100.0
100.0
100.0

89,15393,053133,085

0.6
0.7

1.0

0.0

(Note 2)

(Note 2)100.0

97,432

0.7

4

100.0

6

100.0

1

88,69392,679

0.6
0.7

86.4

304,9292.1

0.2

290,738

2.0

Fukuoka Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

Oval Court Ohsaki Mark West

3

100.0

180,777

1.3

3

100.0

180,114

1.3

24

96.5

237,400

1.7

97.8

543,8733.8

96.3

462,978

3.2

JPR Ichigaya Bldg.

Shinjuku Square Tower
Shinjuku Square Tower(additional acquisition in 14th period)
Shinjuku Square Tower(additional acquisition in 27th period)
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex

9

24
25

88.2

161,786

1.2

194,868

1.4

93.9

2,994

0.0

-

-

-

99.5

549,039

3.9

25

95.8

455,631

3.3

32

0.5

5

100.0

(Note 2)

(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

1.0

8

89.0

167,791

1.2(Note 2)

(Note 2)

Rokubancho Bldg.

1

100.0

(Note 2)

Tokyo Tatemono Kyobashi Bldg.

7

78.8

140,787

4

JPR Harajuku Bldg.

JPR Nihonbashi-horidome Bldg.

9
6

85.2

100.0
100.0

64,888299,693
191,390

1.1

1

100.0

Shinagawa Canal Bldg.

154,584

100.0

1

32

35,739

88.2

4

100.0

Shinjuku Center Bldg.

9

93.9

4

Minami Azabu Bldg.

424226th Fiscal Period
27th Fiscal Period(from Jul. 1, 2014 to Dec. 31, 2014)(from Jan. 1, 2015 to Jun. 30, 2015)
RentalRentalNumberRatio to Number
Ratio toOccupancy Revenues
Occupancy Revenues
of
Total
of
Total
Rate atthroughout
Rate atthroughout
Tenants
RentalTenants
RentalPeriod End
PeriodPeriod End
Periodat Period
Revenues at Period
Revenues(%)(thousands(%)(thousands
End
(%)
End
(%)
of yen)of yen)79.8
8
90.0
329,7622.4
8
365,389
2.6

0.3

1.7
1.4

9
6

100.0

100.0
100.0

36,956

63,734229,489
191,355

0.3

0.4

1.6
1.3

Japan Prime Realty Investment Corporation

Area Type

Property NameCentral Tokyo

OfficeJPR Sendagaya Bldg.

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

RetailJPR Shibuya Tower Records Bldg.
JPR Daikanyama

JPR Jingumae 432

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

OfficeGreater Tokyo

JPR Yokohama Nihon Odori Bldg.

Retail

115,471

0.8

8

100.0

118,7840.8

1,530,000

11.0

2

100.0

1,555,500

10.9

113,608

0.8

24

19

86.4

95.8

9

100.0

4

100.0

112,258

170,762

0.8

1.2

9
1

100.0
100.0

162,510(Note 2)

1.2
(Note 2)

6
1

86.6
100.0

49,736(Note 2)0.4
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

6

100.0

267,826

1.9

13

100.0

123,483

0.9

4

5

37

100.0

93.1

95.6

34,016258,436

132,504

1.9

1.0

6

36

100.0

(Note 2)

86.6

78,09593.0

35,098

141,552(Note 2)
0.2
0.5

1.0

96.9

96,146

0.7

Kawaguchi Center Bldg.

43

96.7

395,026

2.8

42

98.5

394,814

Tachikawa Business Center Bldg.

19

98.1

150,000

1.1

20

100.0

Yume-ooka Office Tower

35

2.3

1

35

100.0

145,838(Note 2)

(Note 2)

Tokyo Tatemono Yokohama Bldg.

14

2.1

13
14

100.0

993,747

7.0

4

100.0

8

100.0

1

100.0

(Note 2)

(Note 2)

11

95.6

997,732

7.2

Tanashi ASTA

4
1

JPR Musashikosugi Bldg.

1

Cupo-la Main Bldg.

Musashiurawa Shopping Square

1

3

Kawasaki Dice Bldg.

27

Tokyo Tatemono Honmachi Bldg.

10

JPR Naha Bldg.

22

Niigata Ekinan Center Bldg.
JPR Hakata Bldg.

Sompo Japan Sendai Bldg.

Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

JPR Dojima Bldg.

JPR Hakata-chuo Bldg.

JPR Nagoya Fushimi Bldg.
Yakuin Business Garden

91.2

100.0

315,797295,254

264,917(Note 2)

1.9
(Note 2)100.0

(Note 2)

(Note 2)

100.0

100.0

(Note 2)

126,996

1
1
1

3

3.5

29

94.0

155,840

1.1

10

100.0

91,601

0.7

20

96.7

128,324

129,34795.3

180,09916

100.0

99,194

6

100.0

3

0.9

8

483,257

40

8(Note 2)

19

95.6

100.0

12

1.3

100.0
100.0

8

13

181,247

0.9

1

19

JPR Ueno East Bldg.

130,945

0.2

Shinyokohama 2nd Center Bldg.

Olinas Tower

Office

100.0

100.0

100.0

Rise Arena Bldg.

Retail8213

Omiya Prime East

Other Cities

26th Fiscal Period
27th Fiscal Period(from Jul. 1, 2014 to Dec. 31, 2014)(from Jan. 1, 2015 to Jun. 30, 2015)
RentalRentalNumberRatio to Number
Ratio toOccupancy Revenues
Occupancy Revenues
of
Total
of
Total
Rate atthroughout
Rate atthroughout
Tenants
RentalTenants
RentalPeriod End
PeriodPeriod End
Periodat Period
Revenues at Period
Revenues(%)(thousands(%)(thousands
End
(%)
End
(%)
of yen)of yen)
100.0
6
100.0
268,966
1.9
7
239,651
1.7

98.3

112,364

100.0

114,42388.8

131,144

78,520

0.9

0.9
1.3
0.8
0.7

0.8
0.6
0.9

8

42

Housing Design Center Kobe

1

100.0

(Note 2)

(Note 2)

1

Total

6

632

100.0
97.0

141,162

13,902,843

1.0

100.0

1

1.0
2.3
2.1
1.9

100.0

(Note 2)

(Note 2)

100.0
100.0
100.0
100.0

93.3
99.8
97.9
98.3

(Note 2)
126,996481,507
129,180
153,636
141,453

88,347111,385(Note 2)
0.9
3.4
0.9
1.1
1.0

0.6

1.3

0.8

0.7

100.0

114,6140.8

94.5

131,798

0.9

100.0

(Note 2)

(Note 2)100.0

(Note 2)

(Note 2)

99.9

1

100.0

6

100.0

647

1.2

(Note 2)

100.0

3

2.8

(Note 2)

6

8

0.7

100.0

98,48117

JPR Chayamachi Bldg.

264,101

100.0

3.1(Note 2)
(Note 2)

297,195

16

12

437,735(Note 2)
(Note 2)100.0

322,539

180,726

99.9
100.0
100.0

92.8

176,988

100.0

17
1
1

93.8

100,501

15

JPR Umeda Loft Bldg.

Benetton Shinsaibashi Bldg.

96.9

96.7

80,704441,269(Note 2)
144,181

14,251,821

0.6

3.1

(Note 2)
1.0

100.0

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science
Plaza-Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same
property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Rise Arena Bldg. and Kawasaki Dice
Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance with the leaseconditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Itemized Portfolio Assets above.
There is no incorporation of main specific assets which are main investment targets of JPR other than those listed under (3) above asof the end of the 27th fiscal period.

43
43

III. Asset Management Report

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

Payment
duringthe 27th
Fiscal Period

AmountAlready
PaidJun. 2015~Jul. 2015

86

－

－

Repair of exterior walls

Sept. 2015~Dec. 2015

79

－

－

Chuo Ward, Tokyo

Refurbishment

Aug. 2015~Dec. 2015

45

－

－

Shinjuku Ward,Tokyo

New installment of security equipment

Mar. 2014~Dec. 2015

43

9

36

Renovation of the entrance hall andreplacement of toilets on the 1st floor1

Sept. 2015~Dec. 2015

38

－

－

Aug. 2015~Nov. 2015

35

－

－

Property Name

Location

PurposeSchedule

Kanematsu Bldg.

Chuo Ward, Tokyo

JPR Ningyocho
Bldg.

2nd phase of renewal of through-the-wall
air conditioning units

Chuo Ward, Tokyo

Kanematsu Bldg.
Annex
Shinjuku Center
Bldg.

MS Shibaura Bldg.
Yume-ooka Office
Tower

Minato Ward,Tokyo

Yokohama City,
Kanagawa

1st phase of replacement of local devices
for automatic control equipment(2) Capital Expenditures during the 27th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 27th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting
new tenants. In addition, aside from these constructions, JPR conducted construction of 579 million yen (Note), which wasappropriated as expenditures for repair and maintenance.
Property Name

Location

JPR Umeda Loft Bldg.

Osaka City, Osaka

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

Kanematsu Bldg.

Chuo Ward, Tokyo

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

PeriodRenewal of heat sources for
air conditioning units

Oct. 2014~Mar. 2015

156

Jan. 2015~Jun. 201573

Mar. 2015~May 2015

52

Jan. 2015~Mar. 2015

39

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

338

2nd phase of replacement of
air conditioning units

2nd phase of renewal ofthrough-the-wall air
conditioning units

4th phase of replacement of
substation facilities

Other Properties

Construction
Expenses(millions of yen)

Purpose

Total

660

(Note) Expenditures for repair and maintenance included 13 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

44
44

Japan Prime Realty Investment Corporation(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs andmaintenance plans for individual properties.
Operation Period
Balance of deposits at
beginning of current
periodDeposits during theperiodAmounts used from
deposits during the period
Deposits carried forward
to the next period

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

24th Fiscal Period(Jul. 1, 2013 Dec. 31, 2013)(Millions of yen)

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

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

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

810

816

805

925

877

376

565

591

378

473

370

576

471

426

416

816

805

925

877

934

45
45

III. Asset Management Report

5. Expenses and Liabilities(1) Details of Expenses Related to Management
26th Fiscal Period(Jul. 1, 2014 - Dec. 31, 2014)

Item(a) Asset Management Fees (Note)
Fixed compensation

485,787
75,000

Incentive-based compensation 1
Incentive-based compensation 2(c) Directors' Fee

75,000255,080

78,417

77,388173,357

6,600(d) Trust Fees

6,600

32,15031,051

691,962

708,916

89,007

Total

503,437

248,702
162,084(b) Administrative Service and Custodian Fees(e) Other Expenses(Thousands of yen)

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

90,438(Note) Aside from the amounts of the asset management fees (26th fiscal period: 2,000 thousand yen, 27th fiscal period: 10,000 thousand yen) entered above have been
paid for asset management of the acquired properties and has been included in the book value of each property.

(2) Status of Loans Payable
As of June 30, 2015 JPR has the following loans payable.
Average
Interest
Rate (%)(Note 1)
(Note 2)Category

LenderShort-Term
Loans
PayableBalance as of
Balance as ofJun. 30,
Jan. 1, 2015
2015
(millions of(millions of
yen)
yen)

Drawdown
Date

Sumitomo Mitsui Trust Bank, Limited(Note 6)

Mar. 26, 2015

－

1,000

0.330% Mar. 25, 2016

Feb. 4, 2011

－
5,000

1,000
5,000

1.414%

Feb. 4, 2016

Dec. 5, 2012

2,000

2,000

1.027%

Dec. 5, 2019

5,000

5,000

1.178%

Jun. 27, 2023

Total
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Mar. 30, 2012

Mizuho Bank, Ltd.

Nov. 27, 2013

Mizuho Bank, Ltd.

Mar. 11, 2015

Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Mar. 24, 2015

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2012

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Long-Term Loans Payable

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000

Nov. 27, 2013

Sumitomo Mitsui Banking Corporation

Mar. 30, 2012

Sumitomo Mitsui Banking Corporation

Jun. 27, 2013

Shinsei Bank, Ltd.

Apr. 5, 2012

Sumitomo Mitsui Banking Corporation－

Aug. 8, 2012

Bank of Tokyo-Mitsubishi UFJ, Ltd.
Bank of Tokyo-Mitsubishi UFJ, Ltd.

－
5,000

Sept. 5, 2012

Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000

Mar. 25, 2011

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sumitomo Mitsui Banking Corporation

Dec. 5, 2012

Jun. 27, 2014
Dec. 5, 2012

Jun. 27, 2014

1,000
3,000
1,000
3,000
4,000

6,400

Aozora Bank, Ltd.

Sept. 30, 2013

Aozora Bank, Ltd.
Development Bank of Japan Inc.

Aug. 30, 2012
Jun. 26, 2009

1,000

1.178%

Aug. 8, 2019

0.919%

Sept. 5, 2017

1,000
3,000
1,000
3,000
4,000

6,400

5,000
2,000

3,000
5,000
2,000
2,000
900

2,000

2,000

2,000

2,000

2,000
1,000
2,900

2,000
1,000
2,800

Principal
Unsecured/
lump sum(Note 3) Unguaranteed/
repayment
Non-Subordinatedon maturity

1.198% Mar. 25, 2016
0.948%
1.027%

Aug. 8, 2017
Dec. 5, 2019

0.970% Nov. 27, 2020
0.889%

Jun. 25, 2021
Dec. 5, 2019

1.093% Mar. 30, 20171.033%

900

Aug. 27, 2012

1.056% Mar. 24, 2025

2,500

Jul. 3, 2012

Aozora Bank, Ltd.

2,000
5,000

Remarks

1.011% Mar. 11, 2024

2,500

3,000

Aozora Bank, Ltd.

Aug. 8, 2012

2,000

Use

0.970% Nov. 27, 2020

1.027%

2,000

Aozora Bank, Ltd.

3,000

Repayment
Method

1.093% Mar. 30, 2017

1,000

Sept. 24, 2013
Dec. 5, 2014

7,000

1,000

Shinsei Bank, Ltd.
Shinsei Bank, Ltd.

46
46

Jun. 27, 2014

7,000

Repayment
Date

1.265%

Jun. 26, 2020

1.397%

Apr. 5, 2019

Principal
Unsecured/
lump sum
repayment (Note 3) Unguaranteed/
Non-Subordinatedon maturity

Jun. 27, 2022

1.076% Sept. 24, 2020
1.134%

Dec. 5, 2024

1.178%

Aug. 8, 2019

0.994%

Jul. 3, 20170.985% Aug. 25, 20171.146% Aug. 30, 2018

1.069% Sept. 24, 2020
3.190%

Jun. 27, 2019

(Note 4)

Japan Prime Realty Investment Corporation

Category

Development Bank of Japan Inc.

Balance as of
Balance as ofJun. 30,
Jan. 1, 2015
2015
(millions of(millions of
yen)
yen)
Jun. 27, 2013
820
820

Development Bank of Japan Inc.

Mar. 24, 2015

Mizuho Trust & Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
The Bank of Fukuoka, Ltd.

Feb. 4, 2013

LenderDevelopment Bank of Japan Inc.
Mizuho Trust & Banking Co., Ltd.

Dec. 5, 2013

2,000
－

2,000
2,000

1.188%

Repayment
Date

5,000

5,000

1.184% Aug. 29, 2017

Aug. 29, 2011

1,000

1,000

0.924%

Principal
lump sum
repayment
Aug. 31, 2015 on maturity

1.076%

Feb. 4, 2020

1,000

－

0.843%

Jun. 26, 2015

2,000

1.170%

Jul. 7, 2016

The Bank of Fukuoka, Ltd.

Sept. 24, 2013

1,000

1,000

0.911% Sept. 24, 2019

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

Sompo Japan Nipponkoa Insurance Inc.
Sompo Japan Nipponkoa Insurance Inc.
ORIX Bank Corporation

Jun. 21, 2011

2,000

Feb. 4, 2013

1,000

Jun. 27, 2012

Nov. 27, 2013

The Shinkumi Federation Bank

Feb. 4, 2013

Taiyo Life Insurance Company
Taiyo Life Insurance Company

Dec. 5, 2013

Sept. 24, 2010
Jun. 4, 2013

Taiyo Life Insurance Company

Dec. 27, 2013

The Chugoku Bank, Ltd.

Sept. 24, 2013

The Chugoku Bank, Ltd.

The Nishi-Nippon City Bank, Ltd.
The Hachijuni Bank, Ltd.

Apr. 11, 2012

May 27, 2011

Apr. 11, 2012

The Hachijuni Bank, Ltd.

Sept. 24, 2014

The Iyo Bank, Ltd.

Apr. 11, 2012

Resona Bank, Limited

Daido Life Insurance Company

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

Sumitomo Life Insurance Company
Zenkyoren (National Mutual Insurance
Federation of Agricultural Cooperatives)
The Tokyo Tomin Bank, Limited (Note7) (Note 8)
The Bank of Yokohama, Ltd. (Note 7)(Note 8)The Minato Bank, Ltd (Note 7) (Note 8)
The Yamaguchi Bank, Ltd. (Note 7)(Note 8)The Chiba Kogyo Bank, Ltd. (Note 7)(Note 8)Total－

Apr. 11, 2012

ORIX Bank Corporation
Shinkin Central Bank

3,604

Mar. 30, 2012
Feb. 5, 2008

Dec. 27, 2013

2,000
2,000

3,000
3,000

1,000
1,000
1,000
2,000
1,000
3,000
1,000
1,000

2,000
1,000

1,000
1,000

2,000

0.902%

Oct. 9, 2015

3,538

1.800%

Jun. 21, 2018

2,000

0.981%

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

3,000

3,000

1,000
1,000
1,000

1.042%

Feb. 5, 2025

Dec. 25, 2015

0.762%

May 27, 2019

0.786%

Feb. 5, 2018

0.786%
0.689%

Feb. 5, 2018

Dec. 5, 2018

1.275% Sept. 24, 2015
0.949%
1.011%

Jun. 4, 2018

Dec. 25, 2020

0.902%

3,000

1.149% May 27, 2016

1,000
1,000

2,000
1,000
－

1,000

Oct. 9, 2015

0.758% Sept. 25, 2018
0.902%

Oct. 9, 2015

0.424% Sept. 26, 2016
1.093% Mar. 30, 20170.902%

1.666%

0.710%

Oct. 9, 2015

Dec. 27, 2018

1,000

1,000

0.710% Dec. 27, 2018

Dec. 5, 2014

1,000

1,000

0.440%－

2.257%

Mar. 26, 2008

2,000

－

1.725% Mar. 26, 2015

Mar. 30, 2012

1,000

－

0.604% Sept. 30, 2015

Mar. 30, 2012

1,000

－

0.604% Sept. 30, 2015

Mar. 30, 2012

800－

0.604% Sept. 30, 2015

Mar. 30, 2012500－

0.604% Sept. 30, 2015

100－

0.604% Sept. 30, 2015

136,524

133,958

Mar. 30, 2012

2,000

Principal
lump sum
repayment
on maturity

Feb. 5, 2015

Dec. 27, 2013
Jun. 4, 2008

(Note 5)Oct. 11, 2016

0.874%

2,000
1,000

Unsecured/
Unguaranteed/
Non-Subordinated1.093% Mar. 30, 2017

2,000

2,000

(Note 3)

Dec. 3, 2021

Aug. 29, 2011

Apr. 11, 2012

Remarks

1.056% Mar. 24, 2025

4,000

3,000

Use

Jun. 25, 2021

Jul. 7, 2011

Meiji Yasuda Life Insurance Company

Repayment
MethodMar. 30, 2012

3,000

4,000

Average
Interest
Rate (%)(Note 1)
(Note 2)
1.449%

Jun. 27, 2012

The Bank of Fukuoka, Ltd.

Long-Term Loans Payable

Drawdown
Date

Dec. 5, 2017
Jun. 4, 2015

(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable, except those in a syndicated loan (Note 8).
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter on the 27th day of every 6 months. In addition, repayment of
2,100 million yen will be made on maturity date June 27, 2019.
(Note 5) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and hereafter on the 27th day of every 6 months. In addition, repayment of 3,208
million yen will be made on maturity date June 21, 2018.
(Note 6) Of the 2,000 million yen in short-term loans payable borrowed on March 26, 2015 from Sumitomo Mitsui Banking Corporation, JPR made early repayment of
1,000 million yen on June 18, 2015.
(Note 7) On June 24, 2015, JPR made early repayment of 3,400 million yen in long-term loans payable borrowed on March 30, 2012 from The Tokyo Tomin Bank
Limited, The Bank of Yokohama, Ltd., The Minato Bank, Ltd., The Yamaguchi Bank, Ltd. and The Chiba Kogyo Bank, Ltd.
(Note 8) The loans are with floating interest rates.

47
47

III. Asset Management Report(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of June 30, 2015 are as follows.
Balance as of
Balance as of
CouponRate
Jan. 1, 2015
Jun. 30, 2015(%)
(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Mar. 12, 2010

6,000

-

1.680

Mar. 12, 2015

May 21, 2010

7,000

-

1.270

May 21, 2015

Oct. 25, 2011

7,000

7,000

0.950

Oct. 25, 2016

Oct. 25, 2011

2,000

2,000

1.340

Oct. 25, 2018

Nov. 22, 2012

5,000

5,000

0.680

Nov. 22, 2017

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

May 31, 2013

5,000

5,000

0.650

May 31, 2018

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Jul. 22, 2014

2,000

2,000

0.303

Jul. 22, 2019

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

54,50041,500Eleventh Series ofInvestment
Corporation Bonds
Twelfth Series ofInvestment
Corporation Bonds

Thirteenth Series ofInvestment
Corporation Bonds

Fourteenth Series ofInvestment
Corporation Bonds

Fifteenth Series ofInvestment Corporation
Bonds
Sixteenth Series ofInvestment Corporation
Bonds
Seventeenth Series ofInvestment Corporation
Bonds
Eighteenth Series ofInvestment Corporation
Bonds
Nineteenth Series ofInvestment Corporation
Bonds
Twentieth Series ofInvestment Corporation
Bonds
Twenty-first Series ofInvestment Corporation
Bonds

Twenty-second Series ofInvestment Corporation
Bonds
Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

(Note 1) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds.

(Note 2) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.

(4) Subscription rights to shares
Not applicable48
48

Japan Prime Realty Investment Corporation

6. Acquisitions and Sales during the 27th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Type of
Asset

Real Estate
Name

Beneficiary

Shinjuku(Note 2)Towerinterest

Acquisition
AcquisitionPrice
Acquisition(thousands
Dateof yen)(Note 1)

SquareMar. 25,

Total

2015
-

Sale
Sale Date

Sale Price(A)(Note 1)

Book Value(B)(thousandsof yen)Difference(C)(A) – (B)(thousandsof yen)Sale
Expense(D)(thousandsof yen)Sale Profit
and Loss(C) – (D)(thousandsof yen)4,000,000

-

-

-

-

-

-

4,000,000

-

-

-

-

-

-

(Note 1) Values of “acquisition price” or “sale price” are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.

(Note 2) JPR already owns trust beneficiary interest as an asset in trust of a portion of the above-mentioned property (initial acquisition in the fiscal period ended

December 2004) and ownership of a portion of the property (additional acquisition in the fiscal period ended December 2008) With regard to the ownership of a
portion of the property (additional acquisition in the fiscal period ended December 2008), an additional trust agreement was concluded with the trustee on March
25, 2015 to add it to the asset in trust (the latest additional acquisition). Accordingly, JPR currently owns it also as trust beneficiary interest(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 27th fiscal period.

(3) Survey on Values of Specified Assets, etc.
Acquisition or
Sale
Acquisition

Type of Asset

Real Estate
Name

Beneficiary

Shinjuku Squareinterest (Note 3)

Tower

Transaction
Date

Acquisition
Price or Sale
Price (Note 1)(thousands ofyen)Real EstateAppraisal
Value (Note 2)(thousands ofyen)Real EstateAppraiser

Appraisal Date

March 25, 2015

4,000,000

4,580,000

Japan Valuers

March 1, 2015

(Note 1) Values of “acquisition price” or “sale price” are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.

(Note 2) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Real
Estate Subject to Securitization.”(Note 3) JPR already owns trust beneficiary interest as an asset in trust of a portion of the above-mentioned property (initial acquisition in the fiscal period ended

December 2004) and ownership of a portion of the property (additional acquisition in the fiscal period ended December 2008) With regard to the ownership ofa portion of the property (additional acquisition in the fiscal period ended December 2008), an additional trust agreement was concluded with the trustee on

March 25, 2015 to add it to the asset in trust (the latest additional acquisition). Accordingly, JPR currently owns it also as trust beneficiary interest(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of specified assets or other deals with interested parties and major shareholders were conducted during the 27th
fiscal period.
2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

254,518

Outsourcing Fees

528,955

Tenant Brokerage Fees
Advertising Cost of the Company

30,908
4,151

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
217,994
Yasuda Real Estate Co., Ltd.
13,332
Taisei-Yuraku Real Estate Co., Ltd.
4,773
Tokyo Tatemono Co., Ltd.
413,062
Yasuda Real Estate Co., Ltd.
37,958
Tokyo Tatemono Co., Ltd.
6,566
E-State Online Co., Ltd.
23

(Thousands of yen)
Ratio to Total
Amount
(B/A)
85.6%
5.2%
1.9%
78.1%
7.2%
21.2%
0.6%

(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreementwith JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27of the regulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.

49
49

III. Asset Management Report(Note 2) The management fees indicated in the above table include construction management fees (total of 15,709 thousand yen) appropriated as assets and not handled as
expenses.

(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or
major shareholders during the 27th fiscal period.
Tokyo Tatemono Co., Ltd.

Yasuda Real Estate Co., Ltd.

Taisei-Yuraku Real Estate Co., Ltd.

Tokyo Real Estate Management Co., Ltd.

Shinjuku Center Building Management Co., Ltd.

389,937 thousand yen
77,590 thousand yen

382 thousand yen

340,202 thousand yen
85,968 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class
1 financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

50
50

Japan Prime Realty Investment Corporation

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

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

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

51
51

III. Asset Management Report

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

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

－

40

January 22, 2002 (Note)

60

－

100

Accumulated Total

100

－

100

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

(2) Units Held
Number of Units Held at End of
Period18th Fiscal Period(Jul. 1, 2010 – Dec. 31, 2010)
19th Fiscal Period(Jan. 1, 2011 – Jun. 30, 2011)

20th Fiscal Period(Jul. 1, 2011 – Dec. 31, 2011)
21st Fiscal Period(Jan. 1, 2012 – Jun. 30, 2012)

22nd Fiscal Period(Jul. 1, 2012 – Dec. 31, 2012)
23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)
25th Fiscal Period(Jan. 1, 2014 – Jun. 30, 2014)

26th Fiscal Period(Jul. 1, 2014 – Dec. 31, 2014)
27th Fiscal Period(Jan. 1, 2015 – Jun. 30, 2015)(Note) Total investment at end of period represents the acquisition price.

52
52

Total Investment at End of
Period (Note)(millions of yen)

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation Owning Foreign Real Estate
Not applicable

11. Other(1) Notice
Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the27th fiscal period include the following:
Date of Board of
Directors
Meeting

Approved Item

Execution of New Investment Units

June 9, 2015

Underwriting Agreement and New

Investment Unit Purchase Agreement
related to the Greenshoe Option

Overview
With regard to the additional issuance of new investment units approved at the Board of Directors

meeting held on June 1, 2015, the administrative services related to the offering of these investment

units were outsourced to the underwriters consisting of Mizuho Securities Co., Ltd. and 5 other firms(Note). To tie a greenshoe option to the additional issuance of the investment units, JPR and Tokyo

Realty Investment Management, Inc. executed a new Investment Unit Purchase Agreement related to
the Greenshoe Option with Mizuho Securities.

(Note) These five companies consist of SMBC Nikko Securities Inc., Nomura Securities Co., Ltd., Daiwa Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities
Co., Ltd. and Tokai Tokyo Securities Co., Ltd.

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

53
53

IV. Financial Statements(1) Balance Sheets

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net

Buildings in trust
Accumulated depreciation

End of 27th Fiscal Period(Jun. 30, 2015)

12,117,339
11,227,028
260,988
174,781
6,743

12,786,017
12,278,621
332,870
127,40744,96756,652,548(11,121,439)

56,762,410(11,898,708)

23,786,880*1

Buildings in trust, net

45,531,108

84,667,091(25,618,333)

25,569,883*1

59,048,758

Structures
Accumulated depreciation

44,863,701

86,397,314(26,625,423)
59,771,891

45,661(14,089)

Structures, net

51,330(15,414)31,57135,916Structures in trust
Accumulated depreciation

120,534(65,156)

119,586(68,497)

Machinery and equipment
Accumulated depreciation

726,204(341,835)

726,505(361,244)

Structures in trust, net

Machinery and equipment, net

Machinery and equipment in trust
Accumulated depreciation

Machinery and equipment in trust, net

55,378*1

384,368

1,605,767(1,168,396)
437,370

51,089*1

365,2611,614,860(1,205,616)
409,244

Tools, furniture and fixtures
Accumulated depreciation

54,610(29,761)

57,922(32,101)

Tools, furniture and fixtures in trust
Accumulated depreciation

159,172(101,991)

160,667(107,680)*1 109,041,559
170,276,140
39,223
1,063*1 108,898,331
173,295,562
46,308－384,928,571

387,816,114

4,794,109
3,020

4,794,109
2,455

96,205248,976

145,462
198,875

390,070,883

392,957,018

233,806－

207,020
44,946

Tools, furniture and fixtures, net

Tools, furniture and fixtures in trust, net

LandLand in trust
Construction in progress
Construction in progress in trust

Total property, plant and equipment

Intangible assets
Leasehold right
Other

Total intangible assets

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

Total investments and other assets

Total noncurrent assets

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

Total assets

54
54(Thousands of yen)

End of 26th Fiscal Period(Dec. 31, 2014)

24,84857,181

4,797,130

345,181

233,806

414,091,570

25,82052,987

4,796,565

344,337

251,966

418,778,869

Japan Prime Realty Investment Corporation

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Total current liabilities

Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust*1

Total noncurrent liabilities

Total voluntary reserve

2,146,009
1,000,000
23,332,000－
1,392,268
99,147605
179,892
2,616,060

41,500,000
116,792,000
7,364,647
12,636,178

41,500,000
110,626,000
7,562,635
12,231,338

30,765,983*1

178,292,826

171,919,974

192,044,238

210,395,598

73,94673,946

5,259,866

5,623,366

202,685,957

73,946

Unappropriated retained earnings(undisposed losses)

Total surplus

Total net assets

2,137,918
19,732,000
13,000,000
572,670
150,603605
261,634
2,565,259

216,713,518

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

Total liabilities and net assets

End of 27th Fiscal Period(Jun. 30, 2015)

38,420,691

Total liabilities

Total unitholders' equity(Thousands of yen)

End of 26th Fiscal Period(Dec. 31, 2014)

73,946

5,333,813*3

197,378,051

197,378,051

414,091,570

5,697,313*3216,092,911

216,092,911

418,778,869

55
55

IV. Financial Statements(2) Statements of Income and Retained Earnings

Operating revenue
Rent revenue-real estate

Total operating revenue

Operating expenses
Expenses related to rent business
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses

Operating income

Non-operating income
Interest income
Income on settlement of management association accounts
Other
Total non-operating income

Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other
Total non-operating expenses

Ordinary income

Extraordinary income
Subsidy income

Total extraordinary income

Income before income taxes
Income taxes-current

Total income taxes

Net income

Retained earnings brought forward
Unappropriated retained earnings (undisposed losses)

56
56(Thousands of yen)

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

27th Fiscal Period(Jan. 1, 2015 –Jun. 30, 2015)*1 13,902,843*1 14,251,821*1*1

13,902,843
6,733,535
485,787
78,4176,600
32,15089,007
7,425,498
6,477,345

14,251,821
6,845,645
503,437
77,3886,600
31,05190,4387,554,562
6,697,259

2,191
4,724
5,055

2,256
42,062
6,430

778,90376,431
363,968
29,815－922

781,107
78,032291,995
26,785623
3,181

11,97150,7491,250,041

1,181,726－

37,397

5,239,275－
5,239,275

605

605

5,238,670

21,196
5,259,866

5,566,282

37,397

5,603,679

605
605

5,603,074

20,291
5,623,366

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

26th Fiscal Period

27th Fiscal Period(Jul. 1, 2014 –Dec. 31, 2014)(Jan. 1, 2015 –Jun. 30, 2015)

Unitholders' equity

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

Total changes of items during the period

Balance at end of current period

Surplus
Voluntary reserve

Balance at beginning of current period
Changes of items during the period

Total changes of items during the period

Balance at end of current period

Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income

Total changes of items during the period

192,044,238

192,044,238－

18,351,360－

18,351,360

192,044,238

210,395,598

73,94673,946－－73,94673,946

5,094,946

5,259,866(5,073,750)(5,239,575)

5,238,670

164,920

5,603,074

363,499

Balance at end of current period

5,259,866

5,623,366

Balance at beginning of current period

5,168,893

5,333,813

Total surplus

Changes of items during the period

Total changes of items during the period

Balance at end of current period

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

Total changes of items during the period

Balance at end of current period

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

Total changes of items during the period

Balance at end of current period

164,920

363,499

5,333,813

5,697,313

197,213,131

197,378,051

164,920

18,714,859

197,378,051

216,092,911

197,213,131

197,378,051

164,920

197,378,051

18,714,859

216,092,911

57
57

IV. Financial Statements(4) Statements of Cash Distributions

I.
II.
III.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

Retained earnings carried forward

Method for calculating distribution amount58
58

26th Fiscal Period(July 1, 2014 –December 31, 2014)
5,259,866,639 yen
5,239,575,000 yen(6,351 yen)
20,291,639 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 5,239,575,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (825,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

27th Fiscal Period(January 1, 2015 –June 30, 2015)

5,623,366,311 yen
5,603,787,000 yen(6,419 yen)
19,579,311 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 5,603,787,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash FlowsNet cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income(Thousands of yen)

26th Fiscal Period

27th Fiscal Period(Jul. 1, 2014 –Dec. 31, 2014)(Jan. 1, 2015 –Jun. 30, 2015)

5,239,275

5,603,679

29,81526,785

1,841,516－(2,191)

1,854,717

623(2,256)

Interest expenses

1,142,872

1,073,103

Decrease (increase) in prepaid expenses(34,205)

47,374

Decrease (increase) in operating accounts receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other

75,843

211,110

4,584(71,882)
18,834

172,409

Increase (decrease) in accrued consumption taxes(47,477)(81,742)

Other, net

44,499(186,454)

Increase (decrease) in advances received(48,740)

50,801

Subtotal

8,456,902

8,505,994

Interest expenses paid

(1,176,354)(1,124,559)

Net cash provided by (used in) operating activities

7,282,132

7,383,073

Purchase of property, plant and equipment in trust(1,321,470)(4,586,723)

Repayments of tenant leasehold and security deposits(261,689)(102,061)

Repayments of tenant leasehold and security deposits in trust(390,772)(48,588)

Net cash provided by (used in) investing activities(1,702,844)(4,208,688)

Repayment of short-term loans payable(12,000,000)(14,000,000)

Repayment of long-term loans payable(166,000)(9,566,000)

Redemption payment of investment corporation bonds(11,000,000)(13,000,000)

Dividends paid

(5,073,621)

Interest income received
Income taxes (paid) refund

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

Payment of tenant leasehold and security deposits

Proceeds from tenant leasehold and security deposits

Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Proceeds from long-term loans payable

Proceeds from issuance of investment corporation bonds
Proceeds from issuance of investment units

Net cash provided by (used in) financing activities

Net changes in cash and cash equivalents

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

2,191

(606)

(187,215)(42,251)
125,187375,367

10,000,000

4,000,000
8,929,218－(5,310,403)
268,885

23,075,482*1 23,344,367

2,256

(618)

(167,304)(49,257)
311,592

433,654

15,000,000

7,000,000－

18,350,172(5,238,285)(1,454,113)
1,720,271

23,344,367*1 25,064,638

59
59

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

(Significant Accounting Policies)
1.

Depreciation Method for
Property and Equipment

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

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

6060(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental expenses.
Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as an acquisition cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted to2,247 thousand yen and 47,294 thousand yen for the fiscal periods ended December 31, 2014 and June 30, 2015,
respectively.
Cash and cash equivalents in the Statements of Cash Flows include the following(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)

End of 26th Fiscal Period(as of December 31, 2014)

End of 27th Fiscal Period(as of June 30, 2015)
117,033

Buildings (net)
Machinery and equipment (net)Land

115,165

3,081

2,910

399,183

399,183

519,299

Total

517,259

Secured liabilities are as follows:(Thousands of yen)
End of 26th Fiscal Period(as of December 31, 2014)

Tenant leasehold and security deposits
Total

End of 27th Fiscal Period(as of June 30, 2015)
15,536

15,536

15,536

15,536

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

(Thousands of yen)

End of 26th Fiscal Period(as of December 31, 2014)
Credit limit
Outstanding debts at end of period
Unused commitment line at end of period

End of 27th Fiscal Period(as of June 30, 2015)
28,000,000

28,000,000－－

28,000,000

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

End of 26th Fiscal Period(as of December 31, 2014)

End of 27th Fiscal Period(as of June 30, 2015)
50,00050,00061
61

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

26th Fiscal Period

27th Fiscal Period(July 1, 2014 –December 31, 2014)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents

Common charges(January 1, 2015 –June 30, 2015)

9,306,026
1,530,000

9,408,080
1,555,500

257,212

256,880

1,838,471

Parking revenues

Advertising expenses

60,179Antenna use fees

18,139Other

33,80460,30919,341
33,652

13,043,834

13,159,200

810,460

721,270

Cancellation charges

15,366

92,834

Income equivalent to expenses for restoration
to original condition

6,780

250,277

Other miscellaneous income

21,21722,994

Subtotal

859,008

1,092,620

Total rent revenue-real estate

13,902,843

14,251,821

Outsourcing expenses

529,363

527,575

Property and other taxes

1,985,098

2,026,740

Repairs and maintenance445,005

566,510

Management association accounts

556,026

Other rental revenues
Incidental income

Subtotal

1,825,436

Time-based parking revenues

5,184

B. Expenses Related to Rent Business
Utilities expenses

983,434

Casualty insurance

27,645

Property management fees

231,909

Depreciation
Other

C. Profits(A-B)

898,434

27,306

238,809576,345

1,841,016

1,854,217

6,733,535

6,845,645

7,169,307

7,406,176

134,034

Total expenses related to rent business

5,244

129,705(Notes to Statements of Changes in Unitholders’ Equity)
26th Fiscal Period(July 1, 2014 – December 31, 2014)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

62
62

5,000,000 units

5,000,000 units

825,000 units

873,000 units

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

26th Fiscal Period(July 1, 2014 – December 31, 2014)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

12,117,339

12,786,017

Cash and deposits in trust

11,227,028

12,278,621

Cash and cash equivalents

23,344,367

25,064,638

Cash and deposits(Leases)

Future lease revenues under non-cancelable operating leases(Thousands of yen)

26th Fiscal Period(July 1, 2014 – December 31, 2014)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

Due within one year

5,543,892

7,177,460

Due after one year

18,230,589

22,973,529

Total

23,774,481

30,150,990(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 ofshort-term funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to management for interest rate
fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit risks, but risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing acommitment line agreement with the main lending financial institutions, and also having statements of cash receipts anddisbursements prepared by the financial division.
(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values based on reasonablecalculations when there is no market price. Certain assumptions, etc. are used in calculating those values and there may be cases
where the values will vary when different assumptions, etc. are used.
2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of December 31, 2014 of financial instruments, and thedifference between these amounts. Please note that the following table does not include those for which discerning of estimatedfair value is recognized to be extremely difficult (please refer to Note 3).

6363

IV. Financial Statements(Thousands of yen)
Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

12,117,339

12,117,339－(2)

Cash and deposits in trust

11,227,028

11,227,028－(3)

Short-term loans payable

－

－

－

(4)

Current portion of long-term loans payable(19,732,000)(19,818,454)

86,454(5)

Current portion of investment corporation bonds(13,000,000)(13,046,800)

46,800(6)Investment corporation bonds(41,500,000)(42,938,833)

1,438,833(7)

Long-term loans payable(116,792,000)(119,165,205)

2,373,205

The following are the carrying values and estimated fair values as of June 30, 2015 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).

(Thousands of yen)

Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

12,786,017

12,786,017－(2)

Cash and deposits in trust

12,278,621

12,278,621－(3)

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

Current portion of long-term loans payable(23,332,000)(23,443,935)

111,935(5)

Current portion of investment corporation bonds

－

－

－

(6)

Investment corporation bonds(41,500,000)(42,727,038)

1,227,038(7)

Long-term loans payable(110,626,000)(112,589,841)

1,963,841(Note 1) Liabilities are shown in parentheses.

(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust

As these financial instruments are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thusstated at that book value.

(3) Short-term loans payable

As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as

the book value and is thus stated at that book value.

(4) Current portion of long-term loans payable, and (7) Long-term loans payable

Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as

it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans

payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being

applicable in the event of a new drawdown corresponding to the remaining loan term.

(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds

Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.

(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult.

Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since

it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.

64
64

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 26th Fiscal Period(as of December 31, 2014)

Category

End of 27th Fiscal Period(as of June 30, 2015)

Tenant leasehold and security deposits

7,364,647

7,562,635

Tenant leasehold and security deposits in trust

12,636,178

12,231,338(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 26th fiscal period (December 31, 2014)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

12,117,339

－

－

－

－

－

Cash and deposits in trust

11,227,028

－

－

－

－

－

Scheduled redemption of monetary claims to be due after the account closing date of the 27th fiscal period (June 30, 2015)

Due after Five
Years(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

12,786,017

－

－

－

－

－

Cash and deposits in trust

12,278,621

－

－

－

－

－

Due after Five
Years

(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after theaccount closing date of the 26th fiscal period (December 31, 2014)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

－

－

－

－

－

－

Investment corporation bonds

13,000,000

7,000,000

5,000,000

7,000,000

4,000,000

18,500,000

Long-term loans payable

19,732,000

18,332,000

32,632,000

16,408,000

17,100,000

32,320,000

Short-term loans payable

Due after Three Due after FourYears through Years throughFour Years
Five Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after theaccount closing date of the 27th fiscal period (June 30, 2015)(Thousands of yen)

Short-term loans payable
Investment corporation bonds
Long-term loans payable

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

1,000,000

－

－

－

－

－

－

7,000,000

10,000,000

2,000,000

4,000,000

18,500,000

23,332,000

24,732,000

21,374,000

17,200,000

14,000,000

33,320,000

Due after Five
Years

(Securities)

26th fiscal period (as of December 31, 2014)
Not applicable
27th fiscal period (as of June 30, 2015)
Not applicable(Derivative Transactions)

26th fiscal period (as of December 31, 2014)
Not applicable as JPR conducted no derivative transactions
27th fiscal period (as of June 30, 2015)

65
65

IV. Financial Statements

Not applicable as JPR conducted no derivative transactions(Retirement Benefits)

26th fiscal period (as of December 31, 2014)
Not applicable as JPR does not have any retirement benefit system
27th fiscal period (as of June 30, 2015)
Not applicable as JPR does not have any retirement benefit system(Tax Effect Accounting)

1. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting
26th Fiscal Period(July 1, 2014 – December 31, 2014)
Effective statutory tax rate

27th Fiscal Period(January 1, 2015 – June 30, 2015)34.16%

34.15%(34.16%)(34.15%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

(Adjustment)
Deductible cash distributions(Equity Method Income and Retained Earnings)

26th fiscal period (July 1, 2014 – December 31, 2014)
Not applicable as JPR does not have any affiliated companies
27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)

1. Parent Company and Major Corporation Unitholders
26th fiscal period (July 1, 2014 – December 31, 2014)
Not applicable
27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable
2. Subsidiaries
26th fiscal period (July 1, 2014 – December 31, 2014)
Not applicable
27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable
3. Sister Companies
26th fiscal period (July 1, 2014 – December 31, 2014)
Not applicable
27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable
4. Directors and Major Individual Unitholders
26th fiscal period (July 1, 2014 – December 31, 2014)
Not applicable
27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable66
66

Japan Prime Realty Investment Corporation(Asset Retirement Obligations)

26th fiscal period (July 1, 2014 – December 31, 2014)
Not applicable
27th fiscal period (January 1, 2015 – June 30, 2015)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.
[Related Information]
26th fiscal period (July 1, 2014 – December 31, 2014)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenues on theStatements of Income and Retained Earnings.
27th fiscal period (January 1, 2015 – June 30, 2015)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenues on theStatements of Income and Retained Earnings.

67
67

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

Carrying Value on the Balance Sheets
Balance at Beginning of Period(Thousands of yen)

26th Fiscal Period(July 1, 2014 – December 31, 2014)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

390,001,463

389,724,535

389,724,535
387,697,000

392,612,013
401,948,000

Amount of Increase (Decrease) during the Period(276,927)

Balance at End of Current Period
Estimated Fair Value at End of Period(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.

2,887,478(Note 2) Of the amount of increase (decrease) during the periods for investment and rental properties, the amount of increase for the 26th fiscal period is primarily
attributable to additional acquisition of Shibadaimon Center Bldg. (826,787 thousand yen), and the amount of decrease for the period is primarily attributable todepreciation (1,841,016 thousand yen). The amount of increase for the 27th fiscal period is primarily attributable to additional acquisition of Shinjuku Square
Tower (4,076,809 thousand yen), and the amount of decrease for the period is primarily attributable to depreciation (1,854,217 thousand yen).

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

The income (loss) in the 26th and 27th fiscal periods for investment and rental properties are as presented in the “Notes toStatements of Income and Retained Earnings.”(Per Unit Information)
26th Fiscal Period(July 1, 2014 – December 31, 2014)
Total net assets per unit
Net income per unit

27th Fiscal Period(January 1, 2015 – June 30, 2015)

239,246 yen

247,529 yen

6, 349 yen

6, 759 yen(Note 1) Net income per unit is computed by dividing net income by the weighted-average number of units outstanding during the current fiscal period. Diluted net income
per unit has not been presented since no subscription rights to shares are outstanding.

(Note 2) Net income per unit was calculated based on the following data:

Net income (thousands of yen)Amounts not attributable to ordinary unitholders (thousands of yen)

Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period(Subsequent Events)
Not applicable

68
68

26th Fiscal Period(July 1, 2014 – December 31, 2014)
5,238,670

27th Fiscal Period(January 1, 2015 – June 30, 2015)
5,603,074－－

5,238,670

5,603,074

825,000 units

828,876 units

Japan Prime Realty Investment Corporation(7) Detailed Schedules
1) Schedule of securities
Not applicable2) Status of contract amounts, etc. and estimated fair value of derivative transactions and forward exchange transactions
Not applicable3) Schedule of assets related to real estate

Asset Type

Current Assets

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

Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures intrust
Land in trust
Construction inprogress in trust
Subtotal
Total

Intangible Assets
Leasehold rights
Other

Total

Increase
Decrease
Balance as ofduring theduring theJanuary 1, 2015
PeriodPeriod(thousands of(thousands of (thousands of
yen)
yen)
yen)

Accumulated Depreciation

Balance as of
Or Accumulated
June 30, 2015
Amortization(thousands of(thousands of
yen)
yen)

-

-

-

-

-

56,652,548

150,658

40,79656,762,410

726,204330

28

54,6103,311

109,041,559

Depreciation Net Balance as ofJune 30, 2015
during theRemarks(thousands ofPeriodyen)(thousands of
yen)
-

-

11,898,708

785,049

44,863,701

726,505361,244

19,436365,261-

57,922

32,101

2,340

25,820-143,227

108,898,331--

108,898,331

39,223

14,2707,18546,308--46,308

166,559,806

174,240

191,238

166,542,808

12,307,468

808,149

154,235,339

84,667,091

1,730,223

1,112

2,060

-

86,397,314

26,625,423

999,309

59,771,891

1,605,767

9,093

-

1,614,860

1,205,616

37,192409,244

159,172

1,495-

160,667

107,680

5,688

52,987

170,276,140

3,019,422-

173,295,562--

173,295,562

1,063

-

1,063

-

-

-

-

256,829,770

4,761,346

3,123

261,587,992

28,007,217

1,046,002

233,580,775-

4,794,109-

4,794,109-

4,801,712

565

4,796,565

45,661

120,534

423,389,576
4,794,109

7,602

4,801,712

5,669

4,935,586
-

-

-

-

194,362-

51,330

119,586

428,130,801

7,602

15,414

68,49740,314,686
-

5,147

5,147

1,324

3,812

1,854,152

565

35,91651,089387,816,114

2,455(Note 1) The “Increase during the Period” is due to property acquisition and construction works, etc. For buildings in trust, machinery and equipment in trust and land intrust, the increase includes the transfer from real estate to beneficiary interests in trust as a result of executing an additional trust agreement.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of construction completion for construction in progress and construction inprogress in trust, and due to asset retirement for structures in trust. For buildings, machinery and equipment and land, the decrease is due to the transfer from realestate to beneficiary interests in trust as a result of executing an additional trust agreement.

4) Schedule of other specified assets
Not applicable69
69

IV. Financial Statements

5) Schedule of investment corporation bonds

Name

Issue Date

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Balance as ofJanuary 1,
2015(thousands ofyen)

Dec. 14, 2006

4,500,000-

4,500,000

2.900

Dec. 14, 2026

Mar. 12, 2010

6,000,000

6,000,000

-

1.680

Mar. 12, 2015

May 21, 2010

7,000,000

7,000,000

-

1.270

May 21, 2015

Oct. 25, 2011

7,000,000-

7,000,000

0.950

Oct. 25, 2016

Oct. 25, 2011

2,000,000-

2,000,000

1.340

Oct. 25, 2018

Nov. 22, 2012

5,000,000-

5,000,000

0.680

Nov. 22, 2017

Nov. 22, 2012

2,000,000-

2,000,000

1.030

Nov. 22, 2019

May 31, 2013

5,000,000-

5,000,000

0.650

May 31, 2018

May 31, 2013

2,000,000-

2,000,000

1.460

May 31, 2023

Feb. 5, 2014

5,000,000-

5,000,000

1.110

Feb. 5, 2024

Jul. 22, 2014

2,000,000-

2,000,000

0.303

Jul. 22, 2019

Jul. 22, 2014

4,000,000-

4,000,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000,000-

3,000,000

0.831

Dec. 4, 2024

54,500,000

13,000,000

41,500,000

Eleventh Series ofInvestment Corporation
Bonds (Note 1)
Twelfth Series ofInvestment Corporation
Bonds (Note 1)
Thirteenth Series ofInvestment Corporation
Bonds (Note 1)
Fourteenth Series ofInvestment Corporation
Bonds (Note 1)
Fifteenth Series ofInvestment Corporation
Bonds (Note 1)
Sixteenth Series ofInvestment Corporation
Bonds (Note 1)
Seventeenth Series ofInvestment Corporation
Bonds (Note 1)
Eighteenth Series ofInvestment Corporation
Bonds (Note 1)
Nineteenth Series ofInvestment Corporation
Bonds (Note 1)
Twentieth Series ofInvestment Corporation
Bonds (Note 1)
Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)
Total

Decreaseduring the
Period(thousands ofyen)

Balance as ofJune 30, 2015
(thousands ofyen)

CouponRate(%)

Maturity Date

Use

Remarks(Note 2)

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

(Note 3) Amounts of investment corporation bonds to be redeemed within five years after the date of the balance sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)

Investment corporation
bonds

70
70

-

7,000,000

10,000,000

2,000,000

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

4,000,000

Japan Prime Realty Investment Corporation

6) Schedule of Loans Payable

LenderShort-term loans payable

Increase
Decrease
Balance asduringduringBalance as ofof January
Current
Current June 30, 2015
1, 2015
PeriodPeriod(thousands of(thousands(thousands (thousands
yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Sumitomo Mitsui Trust Bank, Limited(Note 8)-2,000,000

1,000,000

1,000,000

0.330%

Mar. 25, 2016

Mizuho Bank Ltd. (Note 8)
Mizuho Bank Ltd. (Note 8)-

4,000,000

4,000,000-

0.330%

Jul. 3, 2015

Sumitomo Mitsui Banking Corporation(Note 8)-3,000,000

3,000,000-

0.330%

Jul. 3, 2015-

2,000,000

2,000,000-

0.330%

Jul. 3, 2015-

15,000,000

14,000,000

1,000,000

Increase
Decrease
Balance asduringduringBalance as ofof January
Current
Current June 30, 2015
1, 2015
PeriodPeriod(thousands of(thousands(thousands (thousands
yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Mizuho Bank Ltd.

5,000,000--

5,000,000

1.414%

Mizuho Bank Ltd.

2,000,000--

2,000,000

1.027%

Sumitomo Mitsui Banking Corporation(Note 8)
Total

LenderLong-Term Loans Payable (Note 1)
Mizuho Bank Ltd.
Mizuho Bank Ltd.
Mizuho Bank Ltd.
Mizuho Bank Ltd.

7,000,000
3,000,000
5,000,000

4,000,000-

4,000,000-

7,000,000
3,000,000
5,000,000

0.970%

Nov. 27, 2020

1.011%

Mar. 11, 2024

1.178%

5,000,000--

5,000,000

1.198%The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.948%The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000
3,000,000
1,000,000
3,000,000
4,000,000

Sumitomo Mitsui Banking Corporation

6,400,000

Sumitomo Mitsui Banking Corporation

3,000,000

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Ltd.
Shinsei Bank, Ltd.
Shinsei Bank, Ltd.
Aozora Bank Ltd.

1,000,000
2,500,000--

3,000,000
4,000,000

6,400,000
1,000,000
3,000,000
2,500,000

1.265%

Jun. 26, 2020
Apr. 5, 2019-

2,000,000

1.134%

2,000,000
1,000,000

2,000,000

Mizuho Trust & Banking Co., Ltd.

4,000,000

Mitsubishi UFJ Trust and Banking
Corporation--

2,000,000
900,000

1.076%
0.994%-

2,000,000

1.178%-

2,000,000

1.146%-

2,000,000
1,000,000

Jun. 25, 2021
Dec. 5, 2019

Jun. 27, 2022
Sept. 24, 2020
Jul. 3, 20170.985%

Aug. 25, 20171.069%

Sept. 24, 2020

1.449%

Jun. 25, 2021

1.056%

Mar. 24, 2025

2,000,000

1.188%--

4,000,000

1.093%

Mar. 30, 2017

5,000,000--

5,000,000

1.184%

Aug. 29, 2017

1,000,000--

1,000,000

0.924%

Aug. 31, 2015

1,000,000-

1,000,000-

0.843%

Jun. 26, 2015

3,000,000---

2,000,000

3,000,000

3.190%

Aug. 30, 2018-

2,000,000

820,000

1.076%

Non-SubordinatedAug. 8, 2019

-

-

-

Unsecured/Dec. 5, 2024

100,000-

2,800,000

Dec. 5, 2019-

820,000

Unguaranteed/Aug. 8, 2017

Mar. 30, 20171.033%(Note 4)

Aug. 8, 2019

1.093%
1.027%

RemarksMar. 24, 2025

Nov. 27, 2020

0.889%

Use

Mar. 25, 2016

0.970%

1.027%-

900,000

Development Bank of Japan, Inc.

Mitsubishi UFJ Trust and Banking
Corporation--

1,000,000

2,000,000

2,000,000

2,900,000

Mitsubishi UFJ Trust and Banking
Corporation--

Unsecured/
Unguaranteed/
Non-SubordinatedJun. 27, 2023

Sept. 5, 2017

1.397%Development Bank of Japan, Inc.

Mizuho Trust & Banking Co., Ltd.

--

(Note 4)

Dec. 5, 2019

0.919%

5,000,000

2,000,000

Development Bank of Japan, Inc.

-

3,000,000

1.178%-

Aozora Bank Ltd.

Development Bank of Japan, Inc.

--

1,000,000

1.056%-

2,000,000

Aozora Bank Ltd.

--2,000,000

5,000,000

Aozora Bank Ltd.
Aozora Bank Ltd.

--

Remarks

Feb. 4, 2016

Mar. 30, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,000,000

Jul. 3, 2015

1.093%

2,000,000-

2,000,000

0.330%-

Mizuho Bank Ltd.

-

-

Use

(Note 5)

Dec. 3, 2021

Feb. 4, 2020

71
71

IV. Financial Statements

Long-Term Loans Payable (Note 1)
The Bank of Fukuoka
The Bank of Fukuoka
The Bank of Fukuoka
Meiji Yasuda Life Insurance Company
Meiji Yasuda Life Insurance Company
Sompo Japan Nipponkoa Insurance Inc.
Sompo Japan Nipponkoa Insurance Inc.
ORIX Bank Corporation
ORIX Bank Corporation
Shinkin Central BankThe Shinkumi Federation Bank
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Chugoku Bank
Chugoku Bank
The Nishi-Nippon City Bank, Ltd.
The Hachijuni Bank
The Hachijuni Bank
Resona Bank, Ltd.
The Iyo Bank, Ltd.
Daido Life Insurance Company
Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
The Norinchukin Bank
Sumitomo Life Insurance Company
Zenkyoren (National Mutual Insurance
Federation of Agricultural Cooperatives)
The Tokyo Tomin Bank Limited (Note 7)(Note 8)The Bank of Yokohama, Ltd. (Note 7)(Note 8)The Minato Bank, Ltd. (Note 7) (Note 8)
The Yamaguchi Bank, Ltd. (Note 7)(Note 8)The Chiba Kogyo Bank, Ltd. (Note 7)(Note 8)
Total

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2015
2015
PeriodPeriod(thousands of(thousands of(thousands (thousands
yen)
yen)
of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

2,000,000
2,000,000
1,000,000
3,604,000
2,000,000
2,000,000
1,000,000
2,000,000
3,000,000
3,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,000,000
3,000,000
1,000,000
1,000,000
2,000,000
1,000,000
1,000,000
1,000,000

1,000,000-

66,0001,000,000-

2,000,000
2,000,000
1,000,000
3,538,000
1,000,000
2,000,000
2,000,000
1,000,000
2,000,000
3,000,000
3,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,000,000
3,000,000
1,000,000
1,000,000
2,000,000
1,000,000
1,000,000

1.170%
0.902%
0.911%
1.800%
1.042%
0.981%
0.874%
0.786%
0.762%
0.689%
0.786%
1.275%
0.949%
1.011%
0.902%
0.758%
1.149%
0.902%
0.424%
1.093%
0.902%
1.666%
0.710%

Jul. 7, 2016
Oct. 9, 2015
Sept. 24, 2019
(Note 6)
Feb. 5, 2025
Oct. 11, 2016
Dec. 25, 2015
Feb. 5, 2018
May 27, 2019
Dec. 5, 2018
Feb. 5, 2018
Sept. 24, 2015
Jun. 4, 2018
Dec. 25, 2020
Oct. 9, 2015
Sept. 25, 2018
May 27, 2016
Unsecured/Oct. 9, 2015
Sept. 26, 2016 (Note 4) Unguaranteed/
Non-SubordinatedMar. 30, 2017
Oct. 9, 2015
Feb. 5, 2015
Dec. 27, 2018

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

1,000,000
2,000,000-

2,000,000

1,000,000-

0.440%
2.257%

Dec. 5, 2017
Jun. 4, 2015

2,000,000-

2,000,000-

1.725%

Mar. 26, 2015

1,000,000-

1,000,000-

0.604%

Sept. 30, 2015

1,000,000-

1,000,000-

0.604%

Sept. 30, 2015

800,000-

800,000-

0.604%

Sept. 30, 2015

500,000-

500,000-

0.604%

Sept. 30, 2015

100,000-

100,000-

0.604%

Sept. 30, 2015

136,524,000

7,000,000

9,566,000

133,958,000(Note 1)

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

(Note 2)

The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable, except those that fall under the category of Note 7.
Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.
The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million
yen will be made on maturity date June 27, 2019.
The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter every 6 months. In addition, repayment of 3,208 million yen will
be made on maturity date June 21, 2018.
The loans are with floating interest rates.
On June 16, 2015, JPR repaid 4,000 million yen in short-term loans payable borrowed on March 11, 2015 to Mizuho Bank, Ltd. prior to the repayment date. On
June 16, 2015, JPR repaid 4,000 million yen in short-term loans payable borrowed on May 20, 2015 to Mizuho Bank, Ltd. prior to the repayment date. On June
16, 2015, JPR repaid 3,000 million yen in short-term loans payable borrowed on May 20, 2015 to Sumitomo Mitsui Banking Corporation prior to the repayment
date. On June 16, 2015, JPR repaid 2,000 million yen in short-term loans payable borrowed on June 4, 2015 to Sumitomo Mitsui Banking Corporation prior to
the repayment date. Of the 2,000 million yen in short-term loans payable borrowed on March 26, 2015 from Sumitomo Mitsui Trust Bank, Limited, JPR repaid
1,000 million yen on June 18, 2015 prior to the repayment date. On June 24, 2015, JPR repaid 1,000 million yen in long-term loans payable borrowed on March
30, 2012 to The Tokyo Tomin Bank Limited prior to the repayment date. On June 24, 2015, JPR repaid 1,000 million yen in long-term loans payable borrowed
on March 30, 2012 to The Bank of Yokohama, Ltd. prior to the repayment date. On June 24, 2015, JPR repaid 800 million yen in long-term loans payableborrowed on March 30, 2012 to The Minato Bank, Ltd. prior to the repayment date. On June 24, 2015, JPR repaid 500 million yen in long-term loans payableborrowed on March 30, 2012 to The Yamaguchi Bank, Ltd. prior to the repayment date. On June 24, 2015, JPR repaid 100 million yen in long-term loans
payable borrowed on March 30, 2012 to The Chiba Kogyo Bank, Ltd. prior to the repayment date.

Long-term loans payable(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)72
72

23,332,000

24,732,000

21,374,000

17,200,000

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

14,000,000Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report （差し替えが必要）

7373

IV. Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
26th Fiscal Period(July 1, 2014 – December 31, 2014)

27th Fiscal Period(January 1, 2015 – June 30, 2015)

No property and equipment was leased to JPR

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

26th fiscal period (July 1, 2014 – December 31, 2014)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

38,312

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
1,041(Note) Transaction terms are determined based on prevailing market conditions.

27th fiscal period (January 1, 2015 – June 30, 2015)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

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

74

74

Transactions

Transaction
Amount(thousands of
yen)

－

－

Interest
expenses

37,687

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000832

V. Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of June 30, 2015)
Market capitalization: ¥332.1 billion¥564,000 (May 7, 2007)
Trading High:¥130,300 (October 28, 2008)
Volume Low:
(units) Unit price at end of
32,000 27th Fiscal Period:¥380,500 (June 30, 2015)

Unit

Unit price (yen) Price

Trading volume (units)(yen)
580,000
520,000

28,000Offer price at additional offering: ¥449,820

24,000460,000

20,000400,000

16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

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

220,000

Offer price at IPO: ¥200,000

4,000

Offer price at additional offering: ¥194,610
160,000
Offer price at additional offering: ¥168,1010

100,000

Jun. 14 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 3 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Aug. 8
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2015
2002
2003
(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of June 30, 2015)
Other domestic
corporations

Foreign investors

353

344

(2.24%)(2.19%)

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.28%)

15,689201

Individuals

Foreign investors

51,937 units

189,871 units(5.94%)(21.40%)

Number ofinvestment units
by investor type

Other domestic
corporations

873,000
units

86,249 units(9.87%)

Individuals

Financial institutions(including securities firms)

547,943 units

14,791(62.76%)(94.27%)(Note) The composition ratio is rounded to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

75Notice Concerning Withholding Tax Rate on Dividends of Listed Stocks, Etc.
Please be informed that the concessionary tax rate imposed on dividends and distributions of listed stocks, etc.
was abolished as of December 31, 2013, and the ordinary tax rate is applicable for dividends and distributions oflisted stocks, etc. to be paid on or after January 1, 2014. For reference, the special income tax for reconstruction isapplied for dividends and distributions for the 25-year period from January 1, 2013 through December 31, 2037 at
the rate of 2.1% on the applicable income tax liability.
The withholding tax rates on dividends and distributions of listed stocks, etc. to be paid on or after January 1, 2014 are as follows.

Income tax
Special income tax for reconstruction
Resident tax
Total

From January 1, 2014
to December 31, 2037

From January 1, 2038
and thereafter

15%

15%

0.315%—

5%

5%

20.315%20%⃝ Resident tax is not levied on corporations.

⃝ This notice is meant to provide general information regarding taxation on dividends and distributions of listed stocks, etc., and there may be cases in which the content of this notice is notapplicable. For details, please inquire at the nearest tax office, with a tax accountant or other specialist.
⃝ This notice has been prepared based on the information available as of January 2015.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

More than once every two years

Base Date of General Meeting of Unitholders The date designated pursuant of JPR’s Articles of Incorporation
Cash Distribution Payment Eligibility
Transfer Agent

Unitholders of record as of June 30 and December 31 of each year
Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo
Main Branch, Stock Transfer Agency Division

Location of Records

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

Mailing Address

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

Contact by Phone

0120-288-324

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Procedures for Change of Address
For filing or inquiring about a change of address, please contact your securities company with whom you have an account.
For unitholders who have not utilized Japan Securities Depository Center, Inc. before the dematerialization of stock certificates, accounts (special accounts)
have been opened at Mizuho Trust & Banking Co., Ltd., JPR’s transfer agent. For filing or inquiring about a change of address and other matters with regard
to your special account, please direct them to the contact number indicated above.
Cash Distributions
Cash distributions can be collected by bringing the “unitholder dividend receipt” to the nearest Japan Post Bank main or branch office, sub-branch office orpost office (bank agent) in Japan. If the collection period has elapsed, please make your collection by designating the collection method on the back of the“unitholder dividend receipt” and mailing it to Mizuho Trust & Banking’s Stock Transfer Agency Division. Cash distributions can also be collected at themain or branch offices of Mizuho Trust & Banking (excluding the Trust Lounge) and Mizuho Bank, Ltd.
If you wish to designate a transfer of cash distributions to a bank, etc., please contact your securities company (if you have an account with the company) or
Mizuho Trust & Banking (if a special account has been opened), as in the case of changing the address, etc. above.
(Note)	According to the provisions of JPR’s Articles of Incorporation, cash distributions will become irretrievable if they remain unclaimed for three full years from the date on which payment commenced.
We advise that cash distributions be received as soon as possible.