Corporate Profile
Established on September 14, 2001, Japan Prime Realty Investment Corporation (JPR or theCompany) is a closed-end corporate fund that focuses on a diverse investment portfolio of
office and retail properties. Through its investment activities, JPR has been awarded high credit
ratings from rating agencies, reflecting the Company's high-quality portfolio, earnings stability
and sound financial standing. As of June 30,2009, JPR had an investment portfolio totaling
299.41 billion yen on an acquisition basis, 476 tenants and 51 properties, and is recognized as
one of the top diversified REITs in Japan.

Contents Investment Highlights

1

Message to Our Unitholders

2

Account Highlights

3

Investment Unit Status

4

New Acquisitions during the 15th Fiscal Period and After

5

Portfolio Topics

6

Property Portfolio

8

Overview of Portfolio Properties

14

Characteristics and Corporate History

21

Overview of the Asset Manager

23

Overview of Asset Management

25

Overview of the Investment Corporation

31

Status of JPR's Assets under Management

32

Capital Expenditures of Owned Real Estate

36

Expenses and Liabilities

37

Acquisition and Sale during the 15th Fiscal Period

39

Overview of Accounting

42

Other

43

Balance Sheets

44

Statements of Income and Retained Earnings

46

Statements of Changes in Net Assets

47

Notes to Financial Statements

48

Report of Independent Auditors

54

Statements of Cash Flows (Information Only)55

JPR Investment Policies (Reference)

57

Investor Information

66

Investment Highlights
Portfolio Overview
・Top-ranked diversified J-REIT・Focusing on high-quality office buildings and high-profile retail properties
・Sponsored by major real estate developers, a general contractor, etc.

Growth Strategies
・Investment placing emphasis in properties with strong potential located in the Tokyo area
using diversified acquisition method
・Leverage sponsor pipeline
・Focus on acquiring additional properties from Tokyo Tatemono, a main sponsor
・Seek growth through rent hikes
・Continue prudent financial strategy that can effectively handle changes in the financial
environment

Management View
・Targets・Put more emphasis on improvement of portfolio quality with achievementsof 300 billion yen on a contracted basis
・Raise cash distribution per unit

1Message to Our Unitholders
We are delighted to have this opportunity to provide an overview of the asset management and financial
results of Japan Prime Realty Investment Corporation (JPR) for its 15th fiscal period (January 1, 2009 –June 30, 2009).
The global financial crisis last year, triggered by the subprime issue in the U.S., also caused major turmoil
in the financial and real estate markets in Japan. This forced the J-REIT market, which had treaded a steadypath of growth, to face an unprecedented situation exemplified by the significant drop in investment unit
prices.
Given these difficult conditions, JPR took measures including asset replacement of its portfolio, endeavoring
to replace retail properties in local areas with office buildings in Tokyo. This move was based on ourrecognition that, in order to regain investor value and build a foundation that would catapult JPR to future
growth, it is essential to minimize the negative impact from market fluctuations and work to construct anexcellent portfolio over the medium to long term.
Specifically, JPR canceled the planned acquisition of the KM Fukugo Building (tentative name) in Osaka in
February 2009. In addition, JPR sold Meiji Yasuda Life Osaka Bldg. and Strasse Ichibancho at 12.4 billion
yen in total (on a sale price basis) while acquiring Olinas Tower in June 2009 at 31.3 billion yen (onan acquisition price basis). Moreover, with regard to the preferred securities issued by Meieki Nichome
Kaihatsu SPC, JPR sold an equivalent of 300 million yen (on a sale price basis) of preferred securities
already acquired, and cancelled the other two contracts concluded earlier. As a result, JPR’s portfolio
consisted of 51 properties, or 299.4 billion yen on an acquisition price basis, as of the end of the fiscal
period.
As for financing, JPR continued to secure a stable financial status amid a tough fund procurement
environment, including procurement of 21 billion yen in long-term borrowings in June 2009 to fund theacquisition of Olinas Tower.
With regard to the financial results of the 15th fiscal period, JPR’s net income was 2.331 billion yen as itrecorded extraordinary losses including cancellation penalties in relation to canceling the acquisitions of
the two properties mentioned above, although JPR recorded gains on the sale of properties through theasset replacement it conducted during the fiscal period.
As a result, the cash distribution per unit was set at 3,731 yen, down significantly from the 14th fiscal
period. We deeply regret the concern that this may cause our unitholders.
JPR will continue working with Tokyo Realty Investment Management, Inc., our asset managementcompany, to realize stable growth of our portfolio over the medium to long term by conducting prudent
and careful asset management. With these efforts and commitment, we endeavor to meet the expectationsof our unitholders.
We ask for your continued understanding and support of our operations.

Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation2

Account Highlights(All amounts in millions of yen unless otherwise stated)
11th Fiscal Period
endedJune 2007

12th Fiscal Period
ended
December 2007

13th Fiscal Period
endedJune 2008

Operating revenues

10,056

10,44910,83011,171

14,330Recurring profits

4,373

4,170

4,452

4,433

5,572

Net income

4,372

4,169

4,451

4,432

2,331

Total cash distributions

4,372

4,169

4,451

4,432

2,331

Total assets

271,398

278,842

303,459309,253

329,163

Total unitholders' equity

161,098

160,895

161,177

161,158

159,057

59.4

57.7

53.1

52.1

48.3

Unitholders' equity per unit (yen)257,757

257,432

257,883

257,853

254,492

Cash distribution per unit (yen)

6,996

6,671

7,122

7,092

3,731

Equity ratio (%)

Operating Revenues and Net Income

15,00014th Fiscal Period 15th Fiscal Period
ended
ended
December 2008
June 2009

Total Assets and Total Unitholders' Equity

350,000

Cash Distribution per Unit

8,000

300,000
12,0006,000

250,000

9,000

200,000
4,000
150,000

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

0

0
11th
12th
13th
14th
15th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

0
11th
12th
13th
14th
15th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Operating revenues (million yen)

Total assets (million yen)

Net income (million yen)

Total unitholders' equity (million yen)

11th
12th
13th
14th
15th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Cash distribution (yen)3Investment Unit Status
Historical Unit Price
Trading Volume (units)
Unit Price (yen)Trading
VolumeAs of August 7, 2009Market capitalization: ¥136.8 billion
High: ¥564,000 (May 7, 2007)
Low: ¥130,300 (October 28, 2008)
Unit price at end of 15th Fiscal Period: ¥209,000 ( June 30, 2009 )16,00014,00012,000580,000
520,000
460,000

PO
Offering: ￥449,820

10,000Unit
Price400,000
340,000

8,000
6,000

PO
Offering: ￥237,160

4,000

PO
Offering: ￥272,440

280,000
220,000

ListedTokyo Stock Exchange
Offering: ￥200,000

2,000
0
J
e 14 uly 1
, 20
02

Jun

Jan
.

6, 2

003

July

1

Jan
.

July
1
004

5, 2

160,000

Jan
.

July
4, 2
1
005

Jan
July
. 4,
1
200
6

Jan

. 4,

July
1
200
7

Jan

. 4,

100,000
July Jan Aug.
1 . 4, 2 7
200
009
8

(Note) Unit prices are based on closing prices.

Breakdown of Unitholders at End of Period

Number ofUnitholders

Units
700,000

600,000

28,000625,000 units

625,000 units

625,000 units

625,000 units

625,000 units

8.43%
52,723 units

7.26%
45,388 units

7.05%
44,118 units

7.26%
45,416 units

7.72%
48,270 units

11.93%
74,598 units

11.78%
73,686 units

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

500,000

20,00022.10%
138,141units

24.42%
152,632 units

25.63%
160,245 units

24.57%
153,613 units

24.86%
155,403 units

400,000

16,000300,000

12,000200,000

8,000
57.52%
359,538 units

56.52%
353,294 units

54.93%
343,353 units56.51%
353,212 units

55.07%
344,227 units

100,000

0

4,000

11th Fiscal Period

12th Fiscal Period

Financial Institutions(including securities firms)

4

24,00013th Fiscal Period

ForeignInvestors

14th Fiscal Period

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

Individuals

15th Fiscal Period0

Number of Individual
Investors

New Acquisitions during the 15th Fiscal Period and After
Properties Acquired in the 15th Fiscal Period

B 11

Olinas Tower

Location

Sumida Ward, Tokyo

Acquisition Date

Acquisition Price

Site Area

June 29, 2009
￥31,300 million
27,335.29m

2(entire redevelopment project)
Total Floor Space
257,842.41m2(entire redevelopment project)
Structure

SRC/RC/S

Completed

Floors

B2/45F
February 2006

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

Property to be Acquired in the 17th Fiscal PeriodA

JPR Sendagaya Building

Location

Acquisition Date

Acquisition Price

Site Area

Shibuya Ward, Tokyo
May 2010 (planned)￥15,050 million (Note)
2,217.49m

2

Total Floor Space

7,683.19m

2Structure

S

Floors8F

CompletedMay 2009
Note: In the event profitability improves as a result of efforts by the seller
to attract tenants, etc. the acquisition price is subject to revision
to a maximum of 16,500 million yen based on a predetermined
formula.

5

Portfolio Topics
Portfolio Growth
Occupancy rate (%)

100.0
90.0

Total acquisition
price (billion yen)

320
280

Total acquisition priceTotal leasable floor space

240
200
160
120
80
40
0

End ofNov.
2001

End ofJun.
2002

End ofDec.
2002

End ofJun.
2003

End ofDec.
2003

End ofDec.
2004

End ofJun.
2005

Total acquisition
price (billion yen)

40.73

92.18

94.59

125.79139.64163.65179.62

197.65

Total leasable
floor space (m2 )

94,935.49

162,739.50

168,987.78

201,808.72

218,734.67

256,329.13

273,330.52

281,408.97

Occupancy rate
(%)

96.3

94.1

93.4

93.5

92.7

93.2

95.1

95.4

Properties

13

25

27

30

32

38

42

42

Total numberof tenants

133

281

311

324

357

437

496

459

(Note 1)

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

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

Portfolio Diversification by Region
Value breakdown by acquisition price

Other Cities

Tokyo CBDs

21.0%
42.6%
( ￥62,777 million) ( ￥127,411million)

Tokyo CBDs

Value breakdownby monthly rental revenue at period end
Tokyo CBDs

Other Cities

23.3%( ￥419 million)

Greater Tokyo37.0%( ￥667 million)( ￥109.231 million)( ￥95,385 million)

68.1%( ￥204,034 million)

Tokyo CBDs

Other Cities

30.9%(118,357.44 m 2)

24.9%

(95,371.73 m 2)

Greater Tokyo(169,386.84 m 2 )44.2%

Office buildings

Value breakdownby monthly rental revenue at period end( ￥490 million)

Retail properties
Value breakdownby leased floor space at period end

Retail properties

27.2%
Office buildings

Value breakdownby leased floor space at period end

Greater Tokyo

Retail properties

Retail properties

31.9%

Other Cities( ￥717 million)

Portfolio Diversification by Asset Class
Value breakdown by acquisition priceGreater Tokyo

39.7%

36.5%

6

End ofJun.
2004

Office buildings

72.8%( ￥1,314 million)

41.7%(159.918.54 m 2 )Office buildings

58.3%(223,197.47 m 2 )Total leasable
floor space (m2)

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000End ofDec.
2005

End ofJun.
2006

End ofDec.
2006

End ofJun.
2007

End ofDec.
2007

End ofJun.
2008

End of
Dec.
2008

0

End ofJun.
2009

202.66209.22222.48245.39251.90275.10280.61

299.41

308,205.26

315,156.84

337,382.05

361,574.77

373,609.99

383,491.03

383,215.57

393,532.31

97.2

98.0

98.6

99.0

98.4

97.5

96.4

96.8

42

44

46

48

49

50

52

51

441

462

479

491

517

537

499

476

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

Major Tenants(As of June 30, 2009)

Tenant＃Name of Property

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

1

ABC Development Corporation

Housing Design Center Kobe

35,444.13

9.3%

2

The Seiyu, Ltd.

Tanashi ASTA

31,121.71

8.1%

3

Tokyo Tatemono Co., Ltd.

Shinjuku Center Building,
Arca East, Kawasaki Dice Bldg.

22,181.66

5.8%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

5.2%

5The Loft Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.9%

6

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

11,268.27

2.9%

7

Olympic Corporation

Musashiurawa Shopping Square

9,558.51

2.5%

8

Tower Records Japan, Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

2.1%

7,287.86

1.9%

7,261.54

1.9%

9

Mitsubishi UFJ Lease & Finance Co., Ltd.

10

Sompo Japan Insurance Inc.

JPR Chiba Bldg.,
Mitsubishi UFJ Lease &Finance Nagoya Head
Office Bldg.
Kawaguchi Center Bldg.,
Yume-ooka Office Tower,
Sompo Japan Sendai Bldg.,
Sompo Japan Wakayama Bldg.

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

7

Property Portfolio

A Tokyo CBDs

Ueno

Shinjuku Ward

A-14
A-11

Shinjuku

A-12
A-4

A-5
A-9 Chiyoda
Ward
A-4
Tokyo

Harajuku

A-3

A-5

A-1

ShibuyaMinato Ward

A-2

Tamachi

A-15

A-6

Shinagawa

GotandaA-7
Ohsaki

A-10

A-16

B-5

A-3

A-13
A-1
A-8
Chuo Ward A-2

A-1 Kanematsu Bldg.

A-13 Across Shinkawa Bldg. Annex

A-2 Kanematsu Bldg. Annex

A-14 Shinjuku Center Bldg.

A-3 JPR Ningyo-cho Bldg.

A-15 Minami Azabu Bldg.

A-4 Shin-Kojimachi Bldg.

A-16 Shinagawa Canal Bldg.

A-5 JPR Crest Takebashi Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-6 MS Shibaura Bldg.

A-2

JPR Daikanyama

A-7 Gotanda First Bldg.

A-3

JPR Jingumae 432

A-8 Fukuoka Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-9 JPR Ichigaya Bldg.

A-5

Yurakucho Ekimae Bldg.
(Yurakucho Irocia)

A-11 Shinjuku Square TowerA-

JPR Sendagaya Bldg.

A-12 BYGS Shinjuku Bldg.

Minamiurawa

Musashiurawa

Kawaguchi

B-6
B-3

SAITAMA

TOKYO
Tanashi

Kinshicho

A-10 Oval Court Ohsaki Mark West 17th Fiscal Period Acquisition (Planned)

Shinagawa Ward

B Greater Tokyo

B-1 B-11

IchigayaA-

Shibuya Ward

B-8

B-7

Ikebukuro

B-1

CHIBA

B-9 Ueno
B-7

Shinjuku

Tachikawa

Tokyo

B-11
B-1

Kinshicho

Shibuya
Chiba

ShinagawaMusashikosugi

B-4
KANAGAWA

B-5

KawasakiB-6

Shin-Yokohama
Yokohama
Nihon-Odori

B-10
8

B-3

Kamiooka

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

B-2

C Other Cities
C-1

Niigata Ekinan Center Bldg.

C-7

JPR Hakata Bldg.

C-9

JPR Naha Bldg.

C-12 Sompo Japan Sendai Bldg.
C-13 Sompo Japan Wakayama Bldg.
C-14 Tenjin 121 Bldg.
C-16 JPR Nagoya Sakae Bldg.
C-18 JPR Hakata-chuo Bldg.
C-19 Mitsubishi UFJ Lease & Finance

SENDAI

Nagoya Head Office Bldg.

C-4

Housing Design Center Kobe

C-12

NIIGATA

C-1

OSAKA
See below
KOBE

C-4

FUKUOKA

C-7
C-14
C-18

NAGOYA

WAKAYAMA

C-16
C-19

C-13

NAHA

C-9

C

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

Chiyoda Ward
Chuo Ward
Minato Ward

Osaka

Tokyo CBDs
C-17

Shinjuku Ward
Shinagawa Ward
Shibuya Ward

Kitahama

Yodoyabashi

All other areas of Tokyo

C-4

Greater Tokyo

and Chiba, Kanagawa andSaitama Prefectures

HonmachiC-4

Tokyo Tatemono Honmachi Bldg.

C-17 JPR Dojima Bldg.
C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.

C-3
Shinsaibashi

All other areas in Japan
Nanba

Other Cities

9Location
Category

Tokyo
CBDs

Asset
Class

No.

OfficeA-1

Kanematsu Bldg.

Office

A-2

OfficeProperty Name

Completed

Acquired

Chuo Ward, Tokyo

1993.2

2001.12

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

1993.2

2001.12A-3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

1989.122001.11

OfficeA-4

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

1984.10

2001.11
2002.112004.11

OfficeA-5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

1999.92002.6

OfficeA-6

MS Shibaura Bldg.

Minato Ward, Tokyo

1988.2

2003.3

OfficeA-7

Gotanda First Bldg.

Shinagawa Ward, Tokyo

1989.7

2003.7

OfficeA-8

Fukuoka Bldg.

Chuo Ward, Tokyo

1990.5

2003.10
2005.4

OfficeA-9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

1989.3

2004.5

OfficeA-10

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo

2001.6

2004.6

OfficeA-11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

1994.10

2004.72008.9

OfficeA-12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1985.4

2004.112005.4

OfficeA-13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

1994.6

2004.11

OfficeA-14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1979.10

2008.3

Office

A-15

Minami Azabu Bldg.

Minato Ward, Tokyo

1992.6

2008.7

Office

A-16

Shinagawa Canal Bldg.

Minato Ward, Tokyo

2008.72008.12RetailA-1

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

1992.2

2003.6

RetailA-2

JPR Daikanyama

Shibuya Ward, Tokyo

2002.7

2004.10RetailA-3

JPR Jingumae 432

Shibuya Ward, Tokyo

2006.2

2006.3Retail

A-4

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

2007.1

2007.32008.4RetailA-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda Ward, Tokyo

2007.10

2008.8Location

Subtotal (21 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA
do not include the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

10

(As of June 30 , 2009)

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

Ownership(3) (%)

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

Occupancy
Rate (2)

No. ofTenants

RentalRevenue(thousandsof yen)16,276

5.4

79.4

1,751.13

7,994.02

95.0

8

494,832

2,874

1.0

79.4

679.06

2,291.13100.0

1108,286

2,100

0.7

100.0

550.06

2,791.88

100.0

4109,791

2,420

0.9

77.2

657.802,105.44
901.36312.533,319.33

100.0
100.0
100.0

11

80,044
32,104
12,551

4,000

1.3

100.0

636.903,265.34

89.2

8137,018

11,2003.7

58.0

8,992.18

14,385.84

99.0

8580,307

2,920

1.0

59.6

1,551.19

4,243.58

100.0

2

139,361

2,920

1.0

26.2

1,302.17

1,250.06
687.34

100.0
100.0

1

1,937.40

87,356
41,633

5,100

1.7

100.0

1,058.04

4,212.25

88.3

8

167,439

3,500

1.2

23.9

4,006.00

4,088.44

100.0

4

177,498

10,1803.4

38.8

8,409.52

10,982.03
168.74
11,150.77

93.0

22

313,818
4,822

11,821

3.9

75.0

3,522.46

11,350.62

92.0

22

492,437

710

0.2

35.5

858.481,253.39

84.0

349,59421,000

7.0

8.6

14,917.11

8,041.6387.1

21

512,499

3,760

1.3

100.0

778.093,405.73

100.0

1(Note 5)

1,870

0.6

45.6

828.821,700.57

48.1

2

15,932

12,0004.0

100.0

1,010.47

8,076.85

100.0

1345,576

2,160

0.7

100.0

277.12651.29100.0

444,343

4,460

1.5

100.0

218.21

1,027.33

100.0

5114,184

2,740

0.9

12.5

2,578.69

2,347.81

100.0

178,306

3,400

1.1

1.9

6,808.12

1,101.92

100.0

1(Note 5)

127,411

42.6

93.0

98,637.12

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

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

11

Location
Category

Greater
Tokyo

Asset
Class

No.

OfficeB-1

Arca East

OfficeB-2

OfficeLocation

Completed

Acquired

Sumida Ward, Tokyo

1997.3

2001.11

JPR Chiba Bldg.

Chiba City, Chiba

1991.1

2001.12B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa

1989.10

2001.11

OfficeB-5

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

1991.8

2002.9

OfficeB-6

Kawaguchi Center Bldg.

Kawaguchi City, Saitama

1994.2

2004.2

OfficeB-7

JPR Ueno East Bldg.

Taito Ward, Tokyo

1992.10

2004.3

Property Name

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

1994.122005.92007.2

OfficeB-9

Rise Arena Bldg.

Toshima Ward, Tokyo

2007.1

2007.3

OfficeB-10

Yume-ooka Office Tower

Yokohama City, Kanagawa

1997.32007.7

OfficeB-11

Olinas Tower

Sumida Ward, Tokyo

2006.2

2009.6

RetailB-1

Tanashi ASTA

Nishitokyo City, Tokyo

1995.2

2001.11RetailB-3

Cupo-la Main Bldg.

Kawaguchi City, Saitama

2006.1

2006.3Retail

B-4

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa

1983.32006.9Retail

B-5

Musashiurawa Shopping Square

Saitama City, Saitama

2005.10

2007.3RetailB-6

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

2003.82007.4

OfficeC-1

Niigata Ekinan Center Bldg.

Niigata City, Niigata

1996.3

2001.11

OfficeC-4

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

1970.2

2001.11

OfficeC-7

JPR Hakata Bldg.

Fukuoka City, Fukuoka

1985.6

2001.11

OfficeC-9

JPR Naha Bldg.

Naha City, Okinawa

1991.10

2001.11

OfficeC-12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

1997.12

2002.6

OfficeC-13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

1996.7

2002.6

OfficeC-14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

Subtotal (15 Properties)

Other
Cities2000.7

2002.6
2003.9

OfficeC-16

JPR Nagoya Sakae Bldg.

Nagoya City, Aichi

B 2003.1
P 1986.12

OfficeC-17

JPR Dojima Bldg.

Osaka City, Osaka

1993.10

2004.1

OfficeC-18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

1993.2

2004.6

OfficeC-19

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City, Aichi

1991.32005.3RetailC-1

JPR Umeda Loft Bldg.

Osaka City, Osaka

1990.4

2003.5-7

RetailC-3

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

2003.2

2005.5RetailC-4

Housing Design Center Kobe

Kobe City, Hyogo

1994.6

2005.9RetailC-5

JPR Chayamachi Bldg.

Osaka City, Osaka

1994.6

2006.8Subtotal (15 Properties)
Total (51 Properties)

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

12

(As of June 30 , 2009)

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

Ownership(3) (%)

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

Occupancy
Rate (2)

No. ofTenants

RentalRevenue(thousandsof yen)

5,880

2.0

38.3

3,755.01

7,022.76

85.3

5250,184

2,350

0.8

100.0

1,382.35

5,568.35

82.8

28

128,335

2,927

1.0

100.0

1,100.59

6,066.53

94.7

11

143,642

920

0.3

50.0

841.712,641.19

93.8

1270,775

8,100

2.7

86.5

4,524.61

15,461.98

97.0

37

476,925

3,250

1.1

100.0

1,242.97

6,467.59

91.6

8

196,307

100.0
77.6

18

61,871
82,129

3,188

1.1

47.9

2,047.22

1,747.13
2,980.90
4,728.03

5,831

1.9

25.2

9,377.28

6,023.39100.0

1240,564

6,510

2.2

48.8

12,011.00

12,010.37

88.9

31

334,336

31,300

10.5

23.3

27,335.29

23,987.40

100.0

12

12,971

10,2003.4

43.6

12,326.30

31,121.71

100.0

1

596,400

2,100

0.7

16.7

15,008.28

5,963.00

100.0

1(Note 5)

7,260

2.4

100.0

4,761.62

19,740.95

100.0

1

(Note 5)

4,335

1.4

50.0

8,317.99

14,960.69

100.0

3

129,061

15,0805.0

46.6

4,475.45

13,089.96

98.0

19

479,848

109,231

36.5

2,140

0.7

32.9

2,706.99

5,326.89

100.0

10

135,015

4,150

1.4

72.0

1,432.64

7,210.25

98.7

9245,999

2,900

1.0

100.0

1,214.63

6,581.15

96.9

26

163,071

1,560

0.5

100.0

959.87

3,947.70

95.9

17108,893

3,150

1.1

100.0

1,895.67

7,141.65

100.0

15

205,639

1,670

0.6

100.0

1,128.45

4,874.91

96.5

16

117,738

2,810

0.9

52.2

1,164.39

3,281.12

100.0

13

119,210

4,550

1.5

100.0

992.31

5,461.90

95.3

20

225,475

2,140

0.7

100.0

668.11

3,941.40

79.7

7

113,674

1,920

0.6

100.0

680.633,331.78

100.0

691,364

4,137

1.4

100.0

1,610.38

7,123.07

100.0

1

191,107

13,0004.3

100.0

3,518.68

18,586.97

100.0

1

402,412

5,430

1.8

100.0

609.315,303.98

100.0

1(Note 5)

7,220

2.4

100.0

3,994.47

35,444.13

100.0

1

(Note 5)

6,000

2.0

100.0

592.452,484.39

100.0

7

138,999

62,77721.0

120,041.29

299,419100.0

393,532.31

96.8

476

10,497,061

174,853.90

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of otherowners, etc. except for the following properties:
The above site area indicates the area of the property and Trinity Shibaura that has beendeveloped in an integrated manner
Shinjuku Square Tower: The above site area and total leasable floor space indicate the area of the entire
redevelopment project
The above site area and total leasable floor space indicate the site area and floor space of theRise Arena Building:entire redevelopment project including the residential tower
The above site area indicates the area of the entire redevelopment projectCupo-la Main Bldg.:
MS Shibaura Building:(5) The Benetton Shinsaibashi Bldg. and the Housing Design Center Kobe are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.

13

Overview of Portfolio Properties

New Acquistions during the 15th Fiscal Period and after are on page 5

A 1

Kanematsu Bldg.

A 2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

Total Floor Space

4,351.46m

14,995.09m

22Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/13F
February 1993

A 3

JPR Ningyo-cho Bldg.

SRC B1/8F

February 1993

A 4

Shin-Kojimachi Bldg.

Chuo Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

Total Floor Space

5,152.98m

4,117.70m

22Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B1/8F

December 1989

A 5

JPR Crest Takebashi Bldg.

A 6
Minato Ward, Tokyo
Acquisition Price

Site Area

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

8,992.18m

2

2

Total Floor Space

31,020.21m

4,790.68m

2Completed

SRC/RC/S B2/13F

SRC B1/9F

A 7

Gotanda First Bldg.

2

Structure/Floors
Completed

September 1999

February 1988

A 8

Fukuoka Bldg.

Shinagawa Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

2

Total Floor Space

10,553.34m

1,302.17m

2

Total Floor Space

11,627.74m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B2/11F

14

October 1984

Acquisition Price

Structure/Floors

SRC B1/9F

MS Shibaura Bldg.

Chiyoda Ward, Tokyo

Total Floor Space

657.80m2

2

Total Floor Space

679.06m

2

2

Total Floor Space

July 1989

2

SRC B2/10F
May 1990

A 9

JPR Ichigaya Bldg.

A 10

Oval Court Ohsaki Mark West

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

2

2

Total Floor Space

Total Floor Space

28,575.80m

5,888.82m

22Structure/Floors
Completed

Structure/Floors

SRC B1/9F

Completed

March 1989

A 11

Shinjuku Square Tower

S/SRC B2/17F
June 2001

A 12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price￥10,180 million

Site Area

Acquisition Price￥11,821 million

8,409.52m

2Site Area(entire redevelopment project)

Total Floor Space

3,522.46m

2

Total Floor Space

78,796.00m

2

25,733.10m(entire redevelopment project)

Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B4/30F

SRC B2/14F
April 1985

October 1994

A 13

Across Shinkawa Bldg. Annex

A 14

Shinjuku Center Bldg.

Chuo Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

2

Total Floor Space

5,535.90m

2

Total Floor Space

176,607.89m

22Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/10F

SRC/RC/S B5/54F

June 1994

A 15

Minami Azabu Building

October 1979

A 16

Shinagawa Canal Building

Minato Ward, Tokyo

Minato Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

2

Total Floor Space

4,570.63m

CompletedS

9F

June 1992

828.82m

2

Total Floor Space

5,216.21m

2Structure/Floors

22Structure/Floors
Completed

S

B1/8F
July 200815

JPR Shibuya Tower Records Bldg.

A(Retail)1

Shibuya Ward, Tokyo

Acquisition Price￥12,000 million

Site Area

1,010.47m

Total Floor Space

2

A

3

July 2002

A 4

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

Shibuya Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥4,460 million
218.21m￥2,740 million
2,578.69m

2

2

Total Floor Space

2

Structure/Floors

Completed

Completed

S/SRC/RC B3/14F

S/SRC B1/7F

January 2007

February 2006

Yurakucho Ekimae Building

A 5(Yurakucho Itocia)(Retail)Acquisition Price￥3,400 million
6,808.12m

271,957.65m

2

S/SRS

B4/20FB￥5,880 million

Site Area

3,755.01m

2

Total Floor Space

34,281.86m

2Structure/Floors
Completed

October 2007

JPR Chiba Bldg.

1

Sumida Ward, Tokyo

Acquisition Price

Structure/Floors

B

Arca East

Chiyoda Ward, Tokyo

Total Floor Space

24,617.65m

2

1,066.81m

Structure/Floors

Completed

RC B2/2F

CompletedFebruary 1992

Total Floor Space

2

Structure/Floors

SRC/S B3/8F

JPR Jingumae 432 (Retail)668.09m

2

Structure/Floors

Site Area

277.12m

Total Floor Space

8,449.56m

S/SRC B3/19F
March 1997

B

JPR Yokohama Nihon Odori Bldg.

2

Chiba City, Chiba

Acquisition Price

Site Area

Site Area￥2,350 million
1,382.35m
9,072.57m

2

2￥2,927 million
1,100.59m

2

Total Floor Space

9,146.52m

Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B1/13F
January 1991

3

Yokohama City, Kanagawa

Acquisition Price

Total Floor Space16￥2,160 million

2Completed2

Shibuya Ward, Tokyo

Acquisition Price
Site AreaA

JPR Daikanyama (Retail)2

SRC B1/11F

October 1989

B

Shinyokohama 2nd Center Bldg.

5

Yokohama City, Kanagawa

Kawaguchi City, Saitama

Acquisition Price

Acquisition Price￥920 million

Site Area

841.71m

2

Total Floor Space

B 6

Kawaguchi Center Bldg.

7,781.93m

2Site Area￥8,100 million
4,524.61m

2

Total Floor Space

28,420.85m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/12F
August 1991

B

JPR Ueno East Bldg.

S/SRC B2/15F

February 1994

B

Tachikawa Business Center Bldg.

7

Tachikawa City, Tokyo

Taito Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

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

2

2

Total Floor Space

8,490.44m

Total Floor Space

14,706.36m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B1/8F

October 1992

B 9

Rise Arena Bldg.

December 1994

B 10

Yokohama City, Kanagawa

Acquisition Price￥5,831 million
9,377.28m

2

Acquisition Price
Site Area￥6,510 million
12,011.00m

2（entire redevelopment project)

Total Floor Space

91,280.94m

2

S/SRC B1/12F

Yume-ooka Office Tower

Toshima Ward, Tokyo

Site Area8

2

Total Floor Space

185,974.87m（including residential tower)

Structure/Floors

Structure/Floors

Completed

Completed

RC/SRC/S B3/42F

2

S/SRC/RC B3/27F

January 2007

March 1997

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

B

Tanashi ASTA (Retail)1

Cupo-la Main Bldg. (Retail)Nishitokyo City, Tokyo

Kawaguchi City, Saitama
Acquisition Price

Acquisition Price￥10,200 million

Site Area

12,326.30m

2

Total Floor Space

B 3

80,675.27m

2Site Area￥2,100 million
15,008.28m

2（entire redevelopment project)

Total Floor Space

48,321.96m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC B2/17F

February 1995

S/RC/SRC B2/10F
January 2006

17

B

JPR Musashikosugi Bldg. (Retail)Musashiurawa Shopping Square

4

Acquisition Price

Acquisition Price￥7,260 million￥4,335 million

Site Area

4,761.62m

2

Total Floor Space

18,394.32m

2Structure/Floors

Completed

Completed

SRC/RC/S B1/6F
March 1983

B

6

28,930.36m

2

S B1/4F

October 2005

C

Niigata Ekinan Center Bldg.

Kawasaki City, Kanagawa

Acquisition Price

Site Area

Site Area￥15,080 million
4,475.45m￥2,140 million
2,706.99m

22Structure/Floors

Total Floor Space

19,950.42m

36,902.01m

22Structure/Floors

S/SRC/RC B2/11F

Completed

Completed

August 2003

Tokyo Tatemono Honmachi Bldg. C

S/SRC B1/10F
March 1996C

JPR Hakata Bldg.

4

Acquisition Price

Acquisition Price￥4,150 million
1,432.64m

Site Area￥2,900 million
1,214.63m

2

2

Total Floor Space

14,619.52m

Structure/Floors
Completed

Total Floor Space

9,828.73m

2

SRC B3/9F

C

JPR Naha Bldg.

9

S/RC B1/12F

Completed

June 1985

C 12

Sompo Japan Sendai Bldg.

Naha City, Okinawa

Sendai City, Miyagi

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,560 million
959.87m

5,780.71m

Completed￥3,150 million
1,895.67m

2

2

Total Floor Space

Total Floor Space

10,783.52m

2

2

SRC/S 12F

October 1991

2

Structure/Floors

February 1970

Structure/Floors

7

Fukuoka City, Fukuoka

Osaka City, Osaka

Site Area

1

Niigata City, Niigata

Acquisition Price

Total Floor Space

18

8,317.99m

2

Total Floor Space

Structure/Floors

Kawasaki Dice Bldg. (Retail)5

Saitama City, Saitama

Kawasaki City, Kanagawa

Site Area

B(Retail)

Structure/Floors
Completed

SRC B1/12F

December 1997

C 13

Sompo Japan Wakayama Bldg.

C 14

Tenjin 121 Bldg.

Wakayama City, Wakayama

Fukuoka City, Fukuoka

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,670 million
1,128.45m

2

Total Floor Space

Structure/Floors

S 9F

July 2000

C 17

JPR Dojima Bldg.

C 16

2

S/SRC 13F

Completed

July 1996

JPR Nagoya Sakae Bldg.

28,690.95m

2Completed

1,164.39m

Total Floor Space

6,715.07m

Structure/Floors￥2,810 million

Osaka City, Osaka

Nagoya City, Aichi
Acquisition Price￥4,550 million

Site Area

Acquisition Price

992.31m

2

Total Floor Space

Site Area

2

Structure/Floors
Building
Parking

Total Floor Space

S/ B1/11F
S 1F

January 2003
December 1986

5,696.01m

2Structure/Floors
CompletedFukuoka City, Fukuoka

October 1993

C 19
Nagoya City, Aichi

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,920 million
680.63m￥4,137 million
1,610.38m

2

2

Total Floor Space

Total Floor Space

3,874.81m

10,201.44m

2Structure/Floors
Completed

Structure/Floors

SRC 8F

CompletedFebruary 1993C

JPR Umeda Loft Bldg. (Retail)3

Osaka City, Osaka

Acquisition Price

Site Area

Site Area￥13,000 million
3,518.68m

217,897.56m

Completed

SRC B1/9F

March 1991

Acquisition Price

Total Floor Space

2

Benetton Shinsaibashi Bldg. (Retail) C

1

Osaka City, Osaka

Structure/Floors

SRC B2/9F

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

C 18

JPR Hakata-Chuo Bldg.

668.11m

2

7,340.18m

Completed
Building
Parking￥2,140 million

2

SRC B1/8F

April 1990

￥5,430 million
609.31m

2

Total Floor Space

5,303.98m

Structure/Floors
Completed2

S B2/10F

February 2003

19

C

Housing Design Center Kobe (Retail)4C

JPR Chayamachi Bldg. (Retail)

Kobe City, Hyogo

Osaka City, Osaka

Acquisition Price

Acquisition Price

Site Area

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

2

Total Floor Space

33,877.71m

2

Total Floor Space

3,219.36m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/S B2/11F

20

5

June 1994

2

S/SRC 9F
June 1994

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

Corporate History
Date

Description

September 6, 2001

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

September 14, 2001

Japan Prime Realty Investment Corporation was established

November 16, 2001

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

January 22, 2002

Investment unit split (2.5 units for 1 existing unit)

June 14, 2002

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

21

Members of the Board (As of June 30, 2009)

Executive Officer

Hirohito Kaneko
Dec. 2001
Apr. 1979
Apr. 1977

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

Supervising Officer

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

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

Supervising Officer

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

22

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

Tokyo Realty Investment Management, Inc. (TRIM)

Core Business

Asset management for investment corporation

Capitalization

350 million yen

Shareholders

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

History

April 28, 2000:

Founded

October 13, 2000:

Approved for real estate transaction service

March 16, 2001:

Approved as discretionary transaction agent

June 20, 2001:

Approved for asset management of investment corporation

September 30, 2007:

Registered as investment management business

November 28, 2007:

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

Services

Organization

Shareholders Meeting
Auditors
Board of Directors
CEO

Investment Committee

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

Investment Management
Division

ResearchGroup

Investment
Group

Asset
Management
Group

Financial Division

FinancialGroup

Investor
RelationsGroup

Corporate Plannig /Administration Division

FundManagement
Group

Corporate
Planning
Group

Accounting /HumanResourcesGroup

TRIM's Decision-Making Process of Investment Management

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

23

Directors of Tokyo Realty Investment Management, Inc.
President and Chief Executive Officer (CEO)Toshihiro Hagiwara

Mar. 2001 Resigned as Director of Tokyo Tatemono Co., Ltd.
Jan. 2001 Appointed as President and CEO, Tokyo Realty Investment Management, Inc.
Jan. 2001 Appointed as Director of Tokyo Tatemono Co., Ltd.
Apr. 1999 Appointed as Director and Head of Osaka Branch Office, Tokyo Tatemono Co., Ltd.
Jan. 1998 Appointed as Director and Head of Development Business Department of Kinshicho Project, Tokyo Tatemono Co., Ltd.
Mar. 1997 Appointed as Director and General Manager of Executive Secretariat and Personnel Departments, Tokyo Tatemono Co., Ltd.
Apr. 1992 Appointed as General Manager of Executive Secretariat and Personnel Departments, Tokyo Tatemono Co., Ltd.
Apr. 1989 Dispatched to JR East Urban Development Corporation
Apr. 1989 Appointed as Assistant General Manager of Urban Development Department, Tokyo Tatemono Co., Ltd.
Apr. 1968 Joined Tokyo Tatemono Co., Ltd. and assigned to the Osaka Branch OfficeDirector and Chief Administrative Officer (CAO)

Kazuo Kitami

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

Director and Chief Investment Officer (CIO)

Seiji Miwa

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

Director and Chief Financial Officer (CFO)

Katsuhito Ozawa

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

24

Overview of Asset Management(1) Operational Performance of JPR

Unit

Operating Revenues
Real estate rental revenues
Gain on sale of real estate

Million yen

Dividends received

Operating
Performance

Operating Expenses
Real estate rental expenses
Loss on sale of real estate

Million yen

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

11th
Fiscal Period(Jan. 1, 2007 June 30, 2007)

12th
Fiscal Period(July 1, 2007 Dec. 31, 2007)

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

10,056

10,44910,83011,171

14,3309,496

10,415

10,83011,171

11,030

530

3,300

30

34

4,948

5,443

5,550

5,689

7,762

4,315

4,816

4,909

5,022

4,961

4

2,154
38

Loss on sale of investment securities

Operating Profits

Million yen

5,108

5,006

5,280

5,482

6,568

Recurring Profits

Million yen

4,373

4,170

4,452

4,433

5,572

Net Income

Million yen

4,372

4,169

4,451

4,432

2,331

Total Assets

Million yen

271,398

278,842

303,459309,253

329,163(% Change)
Assets, etc.

%(+10.9)(+2.7)(+8.8)(+1.9)(+6.4)

Interest-bearing Debt

Million yen

92,966

99,683

123,475

129,255

150,230

Total Unitholders' Equity

Million yen

161,098

160,895

161,177

161,158

159,057%(+35.3)(−0.1)(+0.2)(- 0.0)(-1.3)

Unitholders' CapitalMillion yen

156,725

156,725

156,725

156,725

156,725

Total Cash Distributions

2,331(% Change)

Cash
Distribution
per Unit, etc.

Million yen

4,372

4,169

4,451

4,432

Dividend payment ratio

%

99.9

99.9

100.0

99.9

99.9

Number of Units Outstanding

Units

625,000

625,000

625,000

625,000

625,000

Total Unitholders' Equity per Unit

Yen

257,757

257,432

257,883

257,853

254,492

6,996

6,671

7,122

7,092

3,731

6,996

6,671

7,122

7,092

3,731

1.7

1.5

1.5

1.4

1.7

3.4

3.0

3.1

2.9

3.5

3.1

2.6

2.8

2.8

1.5

6.3

5.1

5.5

5.5

2.9

119,074

161,098

160,895

161,177

161,158

Cash Distribution per Unit
Distribution amount

Yen

Exceeding profit distribution amount

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

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

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

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

Million yen%%

DSCR (Note 5)
Net income before interest
and amortization

Million yen

Interest paid (Notes 6)

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

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

Reference
Information

Million yen%
Million yen

59.4

57.7

53.1

52.1

48.3

(+10.7)(-1.7)(-4.6)(-1.0)(-3.8)

34.3

35.7

40.7

41.8

45.6

8.8

8.4

8.0

7.0

7.1

6,230

6,789

7,168

7,285

7,284

705

809

897

1,048

1,024

6,863

7,407

7,739

7,948

7,864

5.5

5.8

5.6

5.5

5.1

6,476

6,826

6,917

7,346

7,109
4.6

5.2

5.4

5.0

5.1

Properties Owned (Note 11)

48

49

50

52

51

Number of Tenants

491

517

537

499

476

%

Total Leasable Floor Space (Note 12)m2

361,574.77

373,609.99

383,491.03

383,215.57

393,532.31

Occupancy Rate

%

99.0

98.4

97.5

96.4

96.8

(Note 1) Recurring profit / (total assets at beginning of period + total assets at end of period) / 2(Notes 2-1 and 2-2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period/total assets at end of period x 100(Note 4) Interest-bearing debt / total assets at end of period x 100(Note 5) Net income before interest and amortization (excluding gain or loss on sale of real estate, loss on sales of investment securities and extraordinary loss) / interest paid
(Note 6) Interest paid in this table includes interest on corporate bonds(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing /purchase price of property (11th fiscal period: ￥250.56 billion, 12th fiscal period: ￥251.90 billion, 13th fiscal period: ￥275.10
billion, 14th fiscal period: ￥284.31 billion and 15th fiscal period: ￥311.91 billion )Annualized NCF from leasing /purchase price of property(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 11th fiscal period: 181 days, 12th fiscal period: 184 days,
13th fiscal period: 182 days, 14th fiscal period: 184 days and 15th fiscal period: 181 days
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East Bldg., Tachikawa Business Center Bldg. and JPR
Umeda Loft Bldg. were acquired at multiple times but are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices are rounded to the first decimal point (except for the dividend payment ratio, which is rounded off to the first decimal point.)25

(2) 15th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under theInvestment Trusts and Investment Corporations Law (hereafter, the Investment Trusts Law), and was listedon the Tokyo Stock Exchange Real Estate Investment Trust Section (securities code: 8955) on June 14, 2002
with 289,600 outstanding investment units. JPR made its third additional public offering in February 2007,
bringing the number of investment units issued and outstanding to 625,000 units. JPR has assigned theasset management of its portfolio to Tokyo Realty Investment Management Inc., through which JPR aims tomaximize unitholder value by efficiently managing the portfolio of office buildings and retail properties.

2) Management Environment
The global economic slowdown has had an expanding impact to the Japanese economy, with the decreasein corporate earnings leading to a deterioration of the employment environment. While there are hints ofbottoming out arising in some areas, it is generally understood that more time is required for a recovery.
Personal spending remained stagnant throughout the period due to concerns of a worsening economy andemployment situation.

The Office Building Leasing Market
The office market has not been able to escape the impact of the slowing demand that has accompanied theeconomic slowdown. In Tokyo, the vacancy rate rose while rents dropped. In regional cities, some areas
where new supply also expanded saw the market conditions worsen even more sharply.

The Retail Property Leasing Market
The retail industry showed conspicuous trends, including review of nationwide expansion of stores andrestraint in opening new stores. Even for stores in good locations of major cities, the upper rent limits
continued to decline and the time required to obtain new tenants kept getting longer.

The For-Sale Real Estate Market
The inflow of capital into the for-sale real estate market has maintained a decreasing trend. Despite theneed to sell real estate, conditions did not match the limited demand, causing a rapid decline in the trading
volume. Most recently, however, there were faint signs of partially loosening fund procurement conditions,and trades were conducted at price levels that reflected forecasted declines in revenues to a certain degree.
To prepare for the future, we will have to closely watch the trends in trade volume and other factors.

3) Portfolio Management Status
Asset Replacement
Based on the recent changes in market conditions, JPR has been focusing on asset replacement byendeavoring to replace properties in the “local area/retail property” category with those in the “Tokyo/
office building” area, with a primary aim of stabilizing portfolio earnings while paying attention tobalancing the diversification of the portfolio, both in terms of location and asset class.
During the 15th fiscal period, JPR conducted replacement of assets by acquiring Olinas Tower at an
acquisition price of 31.3 billion yen while selling Meiji Yasuda Life Osaka Bldg. (initially acquired at 8.3
billion yen) and Strasse Ichibancho (initially acquired at 4.2 billion yen), as well as transferring preferred
securities (initially acquired at 340 million yen), issued by Meieki Nichome Kaihatsu SPC, that it had
already acquired. Moreover, JPR canceled the planned acquisition of the KM Fukugo Building (tentativename) in Osaka and an additional purchase of preferred securities issued by Meieki Nichome Kaihatsu SPC.
As a result, the balance of assets under management now totals 51 properties, or 299.4 billion yen on an
acquisition price basis, as of the end of June 2009. The total leasable floor space is now 393,532m and thenumber of tenants is 476.

26

Operational Management of Portfolio
JPR worked to improve the levels of the actual properties and services by reflecting feedback from tenantsatisfaction surveys and other measures based on its brand strategy. At the same time, JPR flexibly
responded to claims from existing tenants for reduced rents, from the viewpoint of preventing tenants fromleaving, while endeavoring to keep the rent reductions as small as possible. JPR also took such measures
as reviewing rent conditions in order to secure new tenants. Partly due to the acquisition of Olinas Tower,
which operates at a high occupancy rate, as well as conducting replacement of assets such as selling Strasse
Ichibancho, we successfully maintained a high occupancy rate of 96.8% at the end of the 15th fiscal period
for a period-on-period increase of 0.4%.
In addition, JPR completed renovations of air conditioning systems at the JPR Ichigaya Building and
Mitsubishi UFJ Lease & Finance Nagoya Head Office Building as well as construction to renovate common
areas at the JPR Hakata Building, all of which were conducted as part of its brand strategy which aims
to enhance asset values and improve tenant satisfaction. Our tenants have highly evaluated thesearrangements. Furthermore, JPR is continuing work on renovations of common areas at the Mitsubishi
UFJ Lease & Finance Nagoya Head Office Building and renovations of air conditioning systems at the JPR
Yokohama Nihon Odori Building.

Fund Procurement
In the expansion of our portfolio, JPR continued to practice dynamic borrowings accompanying property
acquisitions during this fiscal period. Moreover, JPR has continued to maintain financial stability throughprocurement of long-term fixed rate borrowings with an eye on avoiding future interest rate hike risks andremaining attentive to the diversification of repayment and redemption maturity dates.
As a result, the balance of total outstanding borrowings as of the end of the fiscal period was 95.73 billion
yen, with unsecured corporate bonds of 54.5 billion yen. With regard to JPR's overall interest-bearing debt,
the average interest rate as of the end of the fiscal period (Note 1) was 1.7%, the interest-bearing debt ratio(Note 2) was 48.9% and the LTV (ratio of interest-bearing debt to total assets) at the end of the period (Note3) was 45.6%.
Of these, the non-current position of long-term interest-bearing debt that is hedged against risk of futureinterest rate hikes now comprises 77.5% of all interest-bearing debt, and the average maturity (Note 4) is
4.1 years. The current portion of long-term interest bearing debt is 17.71 billion yen.
The following represents the issuer ratings for JPR as of the end of this fiscal period.

Details of Corporate Credit Ratings as of June 30, 2009
Ratings Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

AA- (Stable)

Moody's Investor Services

A2 (Negative)

Standard & Poor's

Long-term: A (Stable)
Short-term: A-1(Note 1) Average interest is arrived at by calculating a weighted average of interest rates as of the end of the 15th fiscal period based on thebalance of each debt.
(Note 2) Interest-bearing debt ratio (%): interest-bearing debt/(interest-bearing debt + unitholders' capital) x 100 (unitholders' capital:
156.72 billion yen)
(Note 3) LTV at end of period (%): interest-bearing debt/total assets at end of period x 100 (total assets at the end of the 15th fiscal period:
329.16 billion yen)
(Note 4) Average maturity of long-term interest-bearing debt is arrived at by calculating a weighted average of maturities from the end of
the 15th fiscal period to the repayment deadlines for long-term interest-bearing debt with repayment periods of more than one
year, based on the balance of each debt.

27

(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. prior to the 14th fiscal period.
Date

Number of Units Outstanding Unitholders' Capital (million yen)

Event

Balance

Variation

240

240

120

120

(Note 1)

November 16, 2001 Additional private placement

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

Split of investment units

93,360155,600-

31,120(Note 3)June 14, 2002

Initial public offering

134,000

289,600

25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 2, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 2, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

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

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)

September 14, 2001 Established by private placement

Balance

Remarks

Variation

JPR was formed by the investment of three companies -- Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), andTokyo Realty Investment Management, Inc. (40 units) -- at 500,000 yen per unit.
(Note 2) An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in realestate trust and started management.
(Note 3) A single investment unit was split into 2.5 units.
(Note 4) New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to
repay short-term debt, finance the acquisition of new specific assets, etc.
(Note 5) New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 6) New investment units were issued through a third-party allotment at 228,859 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 7) New investment units were issued through a public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 8) New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 9) New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to
repay debt, acquire new specific assets, etc.
(Note 10) New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debt, acquire new specific assets, etc.
(Note 1)

(4) Cash Distributions
Under the Special Taxation Measures Law of Japan, an investment corporation is allowed to deduct dividends ofprofits paid to investors from its taxable income. In order to have the maximum amount of dividend distribution
deducted, JPR decided to distribute all the retained earnings for the 15th fiscal period except for fractional
portions that make distributions per unit in increments of less than 1 yen. As a result, the cash distribution perunit for the 15th fiscal period was set at 3,731 yen.
(Thousands of yen unless otherwise indicated)

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

28

11th
Fiscal Period

12th
Fiscal Period

13th
Fiscal Period

14th
Fiscal Period

15th
Fiscal Period

4,372,752

4,169,727

4,451,575

4,432,832

2,332,243

252

352

325

332

368

(as ofJune 30, 2007)(as ofDecember 31,
2007)(as ofJune 30, 2008)(as ofDecember 31,
2008)(as ofJune 30, 2009)

4,372,500

4,169,375

4,451,250

4,432,500

2,331,875(6,996 yen)

(6,671 yen)

(7,122 yen)

(7,092 yen)

(3,731 yen)

4,372,500

4,169,375

4,451,250

4,432,500

2,331,875(6,996 yen)

(6,671 yen)

(7,122 yen)

(7,092 yen)

(3,731 yen)

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)(5) Future Management Policy and Vital Issues
The financial crisis has spread to the real economy and the downturn in the economy has become a reality.
It is difficult to expect an economic recovery to occur in the near term, and JPR will continue to be tested as
to how it can conduct management under this severe management environment.
In regard to the office leasing market, it appears that the negative effects of the economic slowdown on
demand for office space cannot be evaded. As such, JPR finds it necessary to carefully discern the extent
of such effects. We will need to minimize the decrease in earnings by making even more careful judgments
on management concerning such factors as a breakdown of demand trends by location, property size andspecification, in addition to the overall demand trend and a breakdown of the new supply trend by city or
region.
As for the for-sale real estate market, we must carefully discern how the capital supply to the market willchange in the future while endeavoring to collect information that is necessary for acquiring blue-chipproperties.
Based on these conditions, JPR will proceed with management that exercises caution regarding the following
matters as we strive to maximize unitholder value while also taking note of economic and interest rate
trends.

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

29

2. Management of Portfolio
Given increasing claims from tenants for reduced rents, JPR will work to maintain ourcompetitiveness in the market by taking such measures as differentiating ourselves from others
through our brand strategy and flexible response to rental conditions and other factors.
In terms of the brand strategy, JPR will newly establish the “JPR Design Guidelines,” which will serve
as a basis for creating spaces that are comfortable for occupants. Moreover, JPR will work to grasp thelatest tenant needs through tenant satisfaction studies and deliver the results to tenants in terms ofoperations and facilities, thus securing the provision of high-quality services.
JPR will also strive to grasp changes in social trends as presented in tenant needs and newly-built
properties, and will systematically implement renovations of common areas and restoration or
replacement of air conditioning systems, etc., in pursuit of creating high-quality, highly competitive
buildings that take environmental and energy conservation into account, in order to enhancecustomer satisfaction. Additionally, we will engage in negotiations in a flexible and perseveringmanner so as to minimize declines in rents and the moving out of tenants.
Moreover, with regard to attracting new tenants, JPR will endeavor to prevent occupancy rates fromdecreasing by flexibly responding to rents and other lease conditions while discerning trends intenant demand.

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

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

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

30

Overview of the Investment Corporation(1) Unitholders' Capital

11th Fiscal Period
as ofJune 30, 2007

12th Fiscal Period
as ofDecember 31, 2007

13th Fiscal Period
as ofJune 30, 2008

14th Fiscal Period
as ofDecember 31, 2008

15th Fiscal Period
as ofJune 30, 2009

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total number of units issued
and outstanding

625,000

625,000

625,000

625,000

625,000

Unitholders' capital (millions of yen)

156,725

156,725

156,725

156,725

156,725

Total number of unitholders

17,002

15,08914,921

14,535

14,570Total number of authorized units(2) Primary Investors

The following table shows the 10 largest investors according to the percentage of their owned investment units to the total
number of units outstanding as of the end of the 15th fiscal period.

Name

Number of
Owned Units

Address

Percentage
of Total Units
Outstanding (%)

Nikko Citi Trust and Banking Corporation
Japan Trustee Services Bank, Ltd.
Trust & Custody Services Bank, Ltd.
Tokyo Tatemono Co., Ltd.

Shinagawa Ward, Tokyo
Chuo Ward, Tokyo
Chuo Ward, Tokyo
Chuo Ward, Tokyo

53,43839,36837,55429,300

8.55
6.29
6.00
4.68

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

London, UK(Chuo Ward, Tokyo)

27,246

4.35

25,00024,64424,00013,546
13,384287,480

4.00
3.94
3.84
2.16
2.14

Kawasaki Gakuen
The Master Trust Bank of Japan, Ltd.
Meiji Yasuda Life Insurance Company
North Pacific Bank, Ltd.
Nomura Trust and Banking Co., Ltd.

Kurashiki City, Okayama
Minato Ward, Tokyo
Chiyoda Ward, Tokyo
Sapporo City, Hokkaido
Chuo Ward, Tokyo
Total

45.99

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

(3) Items Related to Directors

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 15th fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 1)

Name
Hirohito Kaneko

Sosuke Yasuda

Total Directors'
NumberFee duringof Ownedthe 15th Fiscal PeriodUnits(thousands of yen)

Representative Counsel, Hirohito Kaneko Law Office

2,400Group representative partner, Gyosei & Co.
CPA and Director, Gyosei Audit Corporation

Outside Auditor, Mitsui Sumitomo Insurance Company, Limited

Outside Auditor, Nomura Research Institute, Ltd.

4,200

Outside Auditor, Mitsui Sumitomo Insurance Group Holdings

Masato Denawa
Independent
Auditor (Note 2)

Other Current Assignments

Partner Attomey, Spring Partners

Ernst & Young
ShinNihon LLC

13,000(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR's English financial statements.

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor

The dismissal of independent auditors shall be considered in accordance with the designations of the Investment
Trust Law. The decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following
comprehensive consideration of circumstances including audit quality, audit fee and other various conditions.

(4) Asset Manager, Asset Custodian and Administrative Agent

The asset manager, asset custodian and administrative agents of JPR at the end of the 15th fiscal period are as follows.
Outsoursing Category

Name

Asset management company

Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent(administration concerning
corporate bonds)

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

31

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

Real estate in trust

Area

15th Fiscal Period(as of June 30, 2009)

14th Fiscal Period(as of December 31, 2008)
Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Tokyo CBDs

49,519,733

16.0

49,515,777

15.0Greater Tokyo

28,227,407

9.1

59,496,657

18.1

Other Cities

15,616,652

5.0

15,756,513

4.8

Tokyo CBDs

76,057,246

24.6

75,751,741

23.0Greater Tokyo

46,891,288

15.2

46,494,428

14.1

Other Cities

57,010,884

18.4

45,592,512

13.9

344,651

0.1

Preferred securities

35,585,473

Deposits and other assets(

Total assets)

36,555,889

11.5
(

(

)

)

11.1
(

)

309,253,338

100.0

329,163,520

100.0(273,323,212)(88.4)(292,607,631)(88.9)(Note 1) Total assets owned are based on the amounts appropriated on the balance sheet as of the settlement date (book values after depreciation for real estate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.
(Note 3) For separation of areas, refer to PP 9(Note 4) Various survey expenses (506,200 thousand yen for the 14th fiscal period and 2,300 thosand yen for the 15th ﬁscal period) are appropriated in deposits and other assets
as construction in progress in this table.
(Note 5) JPR owned 6,120 units of 204,000 units of preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securities of 3%), but it has sold all units it owned onJune 29, 2009.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period)
owned by JPR as of the end of the 15th fiscal period.
Book Value(thousandsof yen)Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy
Rate (%)

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

Asset Class

Olinas Tower

31,466,431

23,987.40

23,987.40

100.0

10.0

OfficeShinjuku Center Bldg.

21,250,188

8,041.63

7,001.96

87.1

4.3

OfficeKawasaki Dice Bldg.

15,175,142

13,089.96

12,830.81

98.0

3.5

RetailKanematsu Bldg.

15,149,244

7,994.02

7,592.33

95.0

4.3

OfficeJPR Umeda Loft Bldg.

12,728,727

18,586.97

18,586.97

100.0

3.8

RetailBYGS Shinjuku Bldg.

12,057,994

11,350.62

10,444.12

92.0

4.0

OfficeJPR Shibuya Tower Records Bldg.

11,726,806

8,076.85

8,076.85

100.0

3.3

RetailMS Shibaura Bldg.

11,108,711

14,385.84

14,240.39

99.0

5.0

OfficeShinjuku Square Tower

9,591,577

11,150.77

10,366.60

93.0

2.8

OfficeTanashi ASTA

8,377,039

31,121.71

31,121.71

100.0

5.6

Retail

148,631,864

147,785.77

144,249.14

97.6

46.4

Property Name

Total

(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents for all properties.
(Note 2)The tenants of Shinjuku Center Bldg. and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a lease agreement has been executed where the rent paid by the tenant fluctuatesin accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate entered for this building are the figures concerning
the sub-lessee of the tenant.
(Note 3) Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees. The figure
includes portion additionally acquired in 14th fiscal period.
Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted areas of offices, shops and warehouses which the company rents and can subleaseto sub-lessees by 40.31465%, the rent allocation ratio of JPR. The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent
allocation ratio. Each figure has been rounded to the second decimal point.

32

(3) Acquired Properties
The overview of the real estate and beneficiary interest in real estate in which JPR invests are as follows.
Location

Asset

CategoryClass

OfficeTokyo
CBDs

Property Name

OfficeTokyo

RetailOfficeOther
CitiesRetailBook Value(as ofJune 30, 2009)(thousands of yen)Appraisal Value(as ofJune 30, 2009)(thousands of yen)

Chuo Ward, Tokyo

Beneficiary Interest

15,149,244

1,3600,000

Chuo Ward, Tokyo

Beneficiary Interest

2,540,265

2,800,000

Chuo Ward, Tokyo

Beneficiary Interest

2,540,000(additional acquisition in 2nd fiscal period )(additional acquisition in 6th fiscal period)

Chiyoda Ward, Tokyo

Beneficiary Interest

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

1,963,282
1,642,212
570,266
203,028

Chiyoda Ward, Tokyo

Beneficiary Interest

3,638,300

3,720,000

Minato Ward, Tokyo
Shinagawa Ward, Tokyo

Beneficiary Interest
Beneficiary Interest
Beneficiary Interest
Real Estate
Beneficiary Interest
Beneficiary Interest
Beneficiary Interest
Real Estate

11,108,711
2,751,545
1,791,778
1,151,237

16,000,000
2,910,000

5,359,943
3,324,691
9,409,065
182,5125,280,000
4,310,000
11,155,000

12,057,994

11,100,000(additional acquisition in 7th fiscal period )Chuo Ward, Tokyo

3,230,000

3,240,000

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

Chiyoda Ward, Tokyo
Shinagawa Ward, TokyoBYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Building
Shinagawa Canal Building

Shinjuku Ward, Tokyo

Real Estate

Chuo Ward, Tokyo

Real Estate

650,657

1,030,000

Shinjuku Ward,Tokyo

Real Estate

21,250,188

15,000,000

Minato Ward, Tokyo

Real Estate

3,894,640

3,070,000

Minato Ward, Tokyo

Real Estate

1,881,512

1,800,000

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

Beneficiary Interest

11,726,806

12,600,000

Shinjuku Ward, TokyoJPR Daikanyama

Shibuya Ward, Tokyo

Real Estate

2,220,416

1,350,000

JPR Jingumae 432

Shibuya Ward, Tokyo

Beneficiary Interest

4,572,598

4,300,000

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

Real Estate

2,805,631

2,380,000

Yurakucho Ekimae Building (Yurakucho Itocia)

Chiyoda Ward, Tokyo

Real Estate

3,420,986

2,750,000

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

Sumida Ward, Tokyo

Beneficiary Interest

5,006,323

6,620,000

Chiba City, Chiba

Beneficiary Interest

2,514,110

1,670,000

Yokohama City, Kanagawa Beneficiary Interest

2,768,788

2,550,000

876,222

1,190,000

Yokohama City, Kanagawa Real Estate
Kawaguchi City, Saitama

Beneficiary Interest

7,512,217

9,480,000

Taito Ward, Tokyo

Real Estate

3,200,954

5,290,000

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

Beneficiary Interest
Real Estate

818,055
2,257,150

3,400,000

Rise Arena Bldg.

Toshima Ward, Tokyo

Real Estate

5,749,414

6,040,000

Yume-ooka Office Tower

Yokohama City, Kanagawa Real Estate

6,549,280

5,870,000

Olinas Tower

Sumida Ward, Tokyo

Real Estate

31,466,431

31,400,000

Tanashi ASTA

Nishitokyo City, Tokyo

Beneficiary Interest

8,377,039

12,200,000

Cupo-la Main Bldg.

Kawaguchi City, Saitama

Real Estate

2,011,357

2,480,000

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa Real Estate

7,385,845

6,140,000

Musashiurawa Shopping Square

Saitama City, Saitama

Beneficiary Interest

4,322,750

3,990,000

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa Beneficiary Interest

15,175,142

14,664,000

Niigata Ekinan Center Bldg.

Niigata City, Niigata

Beneficiary Interest

1,793,690

2,090,000

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

Beneficiary Interest

4,168,038

3,970,000

JPR Hakata Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

3,385,838

3,020,000

JPR Naha Bldg.

Naha City, Okinawa

Beneficiary Interest

1,518,775

1,610,000

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

Beneficiary Interest

2,600,208

3,680,000

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama Beneficiary Interest

1,415,512

1,830,000

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

2,472,608

2,730,000

JPR Nagoya Sakae Bldg.（Note 2）

Nagoya City, Aichi

Real Estate

4,473,848

5,380,000

JPR Dojima Bldg.

Osaka City, Osaka

Beneficiary Interest

2,117,683

2,680,000

JPR Hakata-chuo Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

1,843,339

1,860,000

Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City, Aichi

Real Estate

4,200,279

3,440,000

JPR Umeda Loft Bldg.

Osaka City, Osaka

Beneficiary Interest

12,728,727

15,200,000

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

Beneficiary Interest

5,434,227

4,650,000

Housing Design Center Kobe
JPR Chayamachi Bldg.

Kobe City, Hyogo

Real Estate

7,082,385

6,520,000

Osaka City, Osaka

Beneficiary Interest

6,113,860

4,700,000

Total

292,607,631

300,509,000(additional acquisition in 11th fiscal period )Greater

Asset Type

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

(additional acquisition in 14th fiscal period )RetailLocation(Note 1) The calculated values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on " Regulations on calculations ofinvestment corporations."(Note 2) Aside from properties held as of the end of 15th fiscal period indicated in the table above, JPR plans to acquire JPR Sendagaya Building with 15,050,000 thousand yen. The said
property is completed on May 2009 and the appraisal value as of the June 30, 2009 is 12,100,000 thousand yen. Furthermore, the acquisition price is subject to revision at the
maximum of 16,500,000 thousand yen based on a predetermined formula in the event profitability improves as a result of efforts by the seller to attract tenants, etc.

33

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

Asset

CategoryClass

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

Property Name

NumberofTenants
8

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

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

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

(additional acquisition in 7th fiscal period )JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West

Tokyo
CBDs

Shinjuku Square Tower(additional acquisition in 14th fiscal period )RetailBYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Building
Shinagawa Canal Building
JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.

Yurakucho Ekimae Building (Yurakucho Itocia)

OfficeGreater

Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
(additional acquisition in 11th fiscal period )Tokyo

RetailRise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Meiji Yasuda Life
Osaka Umeda Bldg.（Note 2）

OfficeOther
CitiesTokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
NORTH 33 Bldg.（Note 2）
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Nagoya Sakae Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

RetailJPR Umeda Loft Bldg.
Strasse Ichibancho（Note 2）
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

34

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

RentalOccupancy% of Number
RevenuesofofRate (%) (thousands
Total Tenantsyen)
487,544
100.0
4.4
8

Rental% of
Revenues
Occupancy(thousands of
Total
Rate (%)
yen)
95.0

494,832

4.5

1

100.0

110,927

1.0

1

100.0

108,286

1.0

4

100.0

111,876

1.0

4

100.0

109,791

1.0

11

100.0

76,83532,124
12,288

0.7
0.3
0.1

11

100.0

80,044
32,104
12,551

0.7
0.3
0.1

9

100.0

146,076

1.3

8

89.2

137,018

1.2

8

100.0

597,666

5.3

8

99.0

580,307

5.3

2

100.0

141,791

1.3

2

100.0

139,361

1.3

1

100.0

87,356
41,673

0.8
0.4

1

100.0

87,356
41,633

0.8
0.4

7

76.3

187,449

1.7

8

88.3

167,439

1.5

4

100.0

200,060

1.8

4

100.0

177,498

1.6

96.4

320,728
2,587

2.9
0.0

22

93.0

313,818
4,822

2.8
0.0

23

95.7

495,011

4.4

22

92.0

492,437

4.5

4

100.0

52,456

0.5

3

84.0

49,594

0.4

21

91.2

542,854

4.9

21

87.1

512,499

4.6

1

100.0

（Note 3）（Note 3）1100.0（Note 3）（Note 3）

21

1

14.8

147

0.0

2

48.1

15,932

0.1

1

100.0

345,576

3.1

1

100.0

345,576

3.1

4

100.0

39,881

0.4

4

100.0

44,343

0.4

5

100.0

97,930

0.9

5

100.0

114,184

1.0

1

100.0

78,306

0.7

1

100.0

78,306

0.7

1

100.0

（Note 3）（Note 3）1100.0（Note 3）（Note 3）

6

100.0

295,632

2.6

5

85.3

250,184

2.3

28

86.1

133,987

1.2

28

82.8

128,335

1.2

12

100.0

147,056

1.3

11

94.7

143,642

1.3

12

93.8

74,208

0.7

12

93.8

70,775

0.6

38

97.6

490,223

4.4

37

97.0

476,925

4.3

8

91.6

197,4161.8

8

196,307

1.8

1
34

100.0
74.9
100.0
92.4

60,658102,246
242,423
342,855

0.5
0.9
2.2
3.1

1
31
12

91.6
100.0
77.6
100.0
88.9
100.0

1

100.0

596,400

5.3

1

100.0

61,871
82,129240,564
334,336
12,971
596,400

0.6
0.7
2.2
3.0
0.1
5.4

1

100.0

（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）3100.0

129,061

1.2

3

100.0

129,061

1.2

20

99.2

484,614

4.3

19

98.0

479,848

4.4

10

97.1

129,610

1.2

10

100.0

135,015

1.2

26

99.4

393,998

3.5

373,465

3.4

9

98.7

248,481

2.2

9

98.7

245,999

2.2

27

97.7

164,107

1.5

26

96.9

163,071

1.5

18

97.9

115,949

1.0

17

95.9

108,893

1.0

111,937

1.0

19

18

15

96.9

207,547

1.9

15

100.0

205,693

1.9

15

91.7

116,943

1.0

16

96.5

117,738

1.1

12

98.3

119,355

1.1

13

100.0

119,210

1.1

20

95.3

231,368

2.1

20

95.3

225,475

2.0

8

83.4

121,976

1.1

7

79.7

113,674

1.0

6

100.0

90,357

0.8

6

100.0

91,364

0.8

1

100.0

193,608

1.7

1

100.0

191,107

1.7

1

100.0

402,411

3.6

1

100.0

402,412

3.6

0

0.0

160,000

1.5

1

100.0

（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）7

100.0

142,171

499

1

100.0

（Note 3）（Note 3）

1.3

7

100.0

138,999

96.4 11,171,677 100.0

476

1.3

96.8 11,030,526 100.0(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg. , Rise Arena Bldg. and Kawasaki Dice Bldg. when a single
tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural. The tenants ofShinjuku Square Tower, Shinjuku Center Building, Rise Arena Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where therent paid by the tenants fluctuates in accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) NORTH 33 Bldg. was sold on October 30, 2008. In addition, Meiji Yasuda Life Osaka Umeda Bldg. and Strasse Ichibancho were sold on June 26, 2009.
(Note 3) The tenant to whom the entire portion owned by JPR is leased has not agreed to our disclosing rents and other information. Therefore, JPR does not disclose them as it falls undercases in which disclosure is impossible due to inevitable reasons.

(4) Status of Other Properties
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Acquired
Properties in P33.
There is no incorporation of main specific assets which are main investment targets of JPR other than listed on
P33 as of the end of 15th period.

35

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

Payment
duringthe 15th
Fiscal Period

AmountAlready
Paid

Oct. 2008~
Jul. 2009

200

41

41

Renewal of 1st – 5th floor
common areas

Jul. 2009~
Sep. 200999

Kawaguchi City,
Saitama

Renewal of exterior repair seals

Sep. 2009~
Dec. 200988

JPR Yokohama Nihon Odori
Bldg.

Yokohama City,
Kanagawa

Replacement of 1st basement,
1st, 4th floor air conditioning
units

Jul. 2009~
Dec. 200941

Kawaguchi Center Bldg.

Kawaguchi City,
SaitamaReplacement of central
monitoring system

Jul. 2009~
Dec. 200939

Kanematsu Bldg.

Chuo Ward,Tokyo

Replacement of central
monitoring system

Jul. 2009~
Dec. 200930

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City,
Aichi

Replacement of mechanicalparking facility

Sep. 2009~
Dec. 200919

Property Name

Location

PurposeSchedule

Shinjuku Center Building

Shinjuku Ward,
Tokyo

Countermeasure work of longperiod ground motion

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City,
Aichi

Kawaguchi Center Bldg.

(2) Capital Expenditures during the 15th Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate
during the 15th period. Among major capital expenditures, renewal of exterior repair seals for maintenanceand replacement work to enhance tenant satisfaction as well as improvements to common-use areas and theinstallation of office automation floors for leased offices with the aim of attracting new tenants. In addition,
JPR conducted construction of 248 million yen (Note), which was appropriated as expenditures for repair andmaintenance, aside from these constructions.
Property Name

Location

Purpose

PeriodConstruction Expenses(millions of yen)

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya�City,
Aichi

Replacement of 1st – 9th floor air
conditioning units and renewal of
6th – 9th floor common areas

Jan. 2009~
Jun. 2009224

JPR Naha Bldg.

Naha City,
Okinawa

Replacement of 1st – 12th floor
air conditioning units

Jan. 2009~
Jun. 200984

JPR Hakata Bldg.

Fukuoka City,
Fukuoka

Renewal of 1st – 5th floor
common areas

Jan. 2009~
Jun. 200978

JPR Yokohama Nihon Odori
Bldg.

Yokohama City,
Kanagawa

Replacement of 2nd, 3rd, 5th and6th floor air conditioning units

Jan. 2009~
Jun. 200965

Housing Design Center Kobe

Kobe City,
Hyogo

Renewal of 10th floor ceilingOct. 2008~
Feb. 200939

JPR Ichigaya Bldg.

Chiyoda Ward,Tokyo

Replacement of 1st – 2nd floor
air conditioning units

Jan. 2009~
Jun. 200930

JPR Ueno East Bldg.

Taito Ward,Tokyo

Renewal of exterior repair seals

Apr. 2009~
Jun. 2009

28

Repairs of common area, installation of office

Other Properties

automation floors, preparation of parking lots, air

202

conditioners and disaster prevention facilities

Total

755

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

36

(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal
reserve of profits) such as depreciation in order to conduct large-scale repairs and maintenance work, based onlong-term repairs and maintenance plans for individual properties.

(Millions of yen)

Operation Period

11th Fiscal Period(Jan. 1, 2007 ~June 30, 2007)

12th Fiscal Period(July 1, 2007 ~Dec. 31, 2007)

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

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

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

Balance of deposits at
end of previous period

698

681

737

796

768

Deposits during the period

488

803

604

697

555

Amounts used from
deposits during the period

505

747

545

725

540

Deposits carried forward
to the next period

681

737

796

768

783

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

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

15th Fiscal Period (Jan. 1, 2009- June 30, 2009(a) Asset Management Fees (Note)

416,750

345,480

Fixed compensation

75,00075,000

Incentive-based compensation 1

204,612

198,308

Incentive-based compensation 2

137,138

72,171(b) Administrative Service and Custodian Fees

65,834

66,520(c) Directors' Fee

6,600

6,600

(d) Trust Fees

56,937

69,434(e) Other Expenses

116,584

120,087

662,707608,123

Total(Note) Aside from the amounts of the asset management fees entered above, a total 23,025 thousand yen for the 14th fiscal period and 78,250 thousand yen
for 15th fiscal period have been paid for asset management of the acquired properties and have been included in the book value of each property.

(2) Status of Borrowings

As of June 30, 2009 JPR has the following borrowings.
Category

Drawdown
Date

LenderBank ofTokyo-Mitsubishi
UFJ, Ltd.

Balance as of Balance as ofDecember 31,
June 30,
2008
2009(millions of yen)Jul. 4, 2008

3,000

Jul. 14, 2008

1,000

Mar. 31, 2009

(millions of yen)

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

Repayment
Date

0.911

Mar. 31, 2009

1,000

0.966

Jul. 3, 2009

3,000

0.922

Jul. 3, 2009

Resona Bank, Limited Jul. 4, 2008

4,000

4,000

0.866

Jul. 3, 2009

Jul. 4, 2008

2,972

2,972

0.866

Jul. 3, 2009

Jul. 14, 2008

1,000

1,000

0.966

Jul. 3, 2009

Short-Term Mitsubishi UFJ
Jul. 4, 2008
Borrowings Trust and Banking
Corporation
Mar. 31, 2009

2,280

Mizuho Corporate
Bank, Ltd.

0.911

Mar. 31, 2009

1,000

0.966

Jul. 3, 2009

900

900

0.966

Jul. 3, 2009

17,172

16,152

Sumitomo Mitsui
Jul. 14, 2008
BankingCorporation

1,000

Jul. 14, 2008

Remarks

0.922

0.911
2,280

1,020

Total

Use

Principal
Unsecured/
lump sum
Unguaranteed/
Mar. 31, 2009 repayment (Note 3) Non on
subordinatedmaturityJul. 3, 2009

Shinsei Bank, Limited Jul. 4, 2008

Aozora Bank, Ltd.

Repayment
Method37

Development Bankof Japan Inc.
Current
Portion ofLong-term
Borrowings

Mar. 31, 2009

50

1.740

(Note 4)

Jun. 26, 2009

200

3.190

(Note 5)(Note 5)

200

2.449

(Note 6)(Note 6)

166

2.390

(Note 7)(Note 7)

100

2.440

(Note 8)(Note 8)Mizuho Corporate
Jun. 26, 2009
Bank Ltd.
Bank of TokyoMitsubishi UFJ, Ltd. Jun. 26, 2009
Sumitomo Mitsui
Jun. 26, 2009
Banking Corporation
Total
Zenkyoren
Nov. 24, 2005
(The National
Mutual Insurance
Federation ofAgricultural
Mar. 26, 2008
Cooperatives)(Note 4)

716
5,000

5,000

1.453

Nov. 27, 2012

2,000

2,000

1.725

Mar. 26, 2015

Mitsubishi UFJ Trust Aug. 29, 2006
and Banking Corp.
Jun. 26, 2009

6,000

6,000

1.734

Aug. 29, 2011

1,000

2.156

Jun. 27, 2012

Shinsei Bank, Ltd. Sep. 26, 2006

3,000

3,000

1.356

Sep. 24, 2010

The Bank ofFukuoka, Ltd.

Sep. 26, 2006

1,000

1,000

1.356

Sep. 24, 2010

Apr. 11, 2007

2,000

2,000

1.676

Apr. 11, 2012

The Chugoku
Bank, Ltd.

Sep. 26, 2006

1,000

1,000

1.356

Sep. 24, 2010

Apr. 11, 2007

2,000

2,000

1.676

The Hachijuni
Bank, Ltd.

Sep. 26, 2006

1,000

1,000

1.356

Dec. 26, 2006

1,000

1,000

1.642

Dec. 26, 2006

Daido Life
Insurance Company Feb. 5, 2008

1,000

1,000

1.858

Principal
Apr. 11, 2012 lump
Sep. 24, 2010 sum
repayment
Apr. 11, 2012 on
maturity
Dec. 27, 2013

1,000

1,000

1.666

Feb. 5, 2015

Dec. 26, 2006
Taiyo Life
Insurance Company Jun. 4, 2008

1,000

1,000

1.858

Dec. 27, 2013

1,000

1,000

2.035

Jun. 4, 2013

Dec. 27, 2006
Sumitomo Life
Long-Term Insurance Company
Jun. 4, 2008
Borrowings
Apr. 11, 2007
Sompo Japan
Insurance Inc.
Jun. 26, 2009

2,000

2,000

1.858

Dec. 27, 2013

2,000

2,000

2.257

Jun. 4, 2015

2,000

2,000

1.676

Apr. 11, 2012

2,000

2.156

Jun. 27, 2012

The Iyo Bank, Ltd.

Apr. 11, 2007

1,000

1,000

1.676

Apr. 11, 2012

Mizuho Corporate
Bank, Ltd.

Feb. 5, 2008

5,000

5,000

1.181

Feb. 4, 2011

5,800

2.449

(Note 6)

Jun. 26, 2009

Mar. 26, 2008
Bank of TokyoMitsubishi UFJ, Ltd.
Jun. 26, 2009
Aozora Bank, Ltd. Aug. 26, 2008

5,000

3,400

5,000

1.380

4,834

2.390

3,400

1.593

Unsecured/(Note 3) Unguaranteed/
Nonsubordinated(Note 6)

Principal
lump sumMar. 26, 2011 repayment
on maturity(Note 7)(Note 7)

Principal
sumAug. 26, 2011 lump
repayment
on maturity

Development Bank of Mar. 31, 2009
Japan Inc.
Jun. 26, 2009

945

1.740

(Note 4)(Note 4)

3,800

3.190

(Note 5)(Note 5)

Sumitomo Mitsui
Banking Corporation Jun. 29, 2009

2,900

2.440

(Note 8)(Note 8)

4,783

2.050

4,400

4,400

1.750

57,58378,862

Meiji Yasuda Life
Insurance Company
Total

Jun. 21, 2002
Mar. 28, 2003

Unsecured/
Unguaranteed/(Note 3)
Nonsubordinated

4,783

Jun. 21, 2011 Principal

lump sum
repayment
Mar. 28, 2013 on maturity

Secured/
Unguaranteed/
Nonsubordinated(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal point. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 2) Short-term borrowings are floating-rate borrowings. Long-term borrowings are fixed-rate borrowings.
(Note 3) Funds are mainly used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses) and repaying borrowings.
(Note 4) The borrowings are subject to repayment of 25 million yen on June 27, 2009 and hereafter every 6 months. In addition, repayment of 820 million yen will be madeon the maturity date.
(Note 5) The borrowings are subject to repayment of 100 million yen on December 27, 2009 and hereafter every 6 months. In addition, repayment of 2,100 million yen will
be made on the maturity date.
(Note 6) The borrowings are subject to repayment of 100 million yen on December 25, 2009 and hereafter every 6 months. In addition, repayment of 5,100 million yen will
be made on the maturity date.
(Note 7) The borrowings are subject to repayment of 83 million yen on December 27, 2009 and hereafter every 6 months. In addition, repayment of 4,253 million yen will bemade on the maturity date.
(Note 8) The borrowings are subject to repayment of 50 million yen on December 25, 2009 and hereafter every 6 months. In addition, repayment of 2,550 million yen will bemade on the maturity date.

38

(3) Corporate Bonds

Details of corporate bonds outstanding as of June 30, 2009 are as follows.
Balance as ofDecember 31, 2008
(millions of yen)

Issue Date

Name

Second Series ofCorporate
Bonds
Third Series ofCorporate
Bonds
Fourth Series ofCorporate
Bonds
Fifth Series ofCorporate
Bonds
Sixth Series ofCorporate
Bonds
Seventh Series ofCorporate
Bonds
Eighth Series ofCorporate
Bonds
Ninth Series ofCorporate
Bonds
Tenth Series ofCorporate
Bonds

Balance as ofJune 30, 2009
(millions of yen)

Coupon Rate(per annum)

Maturity
Date

Redemption

Use

Feb. 12, 2004

7,000

7,000

1.38

Feb. 12,2010

Feb. 12, 2004

5,000

5,000

2.32

Feb. 12,2014

Purchase of

Nov. 4, 2004

10,00010,0000.92

Nov. 4,2009

andNov. 4, 2004

5,000

5,000

1.44

Nov. 4,2011

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4,2014(Note 1)properties
repayment ofborrowings(Note 2)

Bulletpayment

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14,2026

July 23, 2007

9,000

9,000

1.85

July 23,
2012

July 23, 2007

6,000

6,000

2.10

July 23,2014

May 30, 2008

3,000

3,000

1.71

May 30,2011

54,50054,500Total

Remarks

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

Acquisition and Sale during the 15th Fiscal Period(1) Aqcuisition and Sale of Real Estate and Asset-Backed Securities
Acquisition
Type of Asset

Real Estate
Name

Acquired
Date

Sale

AcquisitionPrice(thousandsof yen)(Note)

Sale
Date

Sale
Sale Profit
Book
Difference (C)SalePrice (A)and Loss
Value (B)(A) - (B)Expenses (D)(thousands (thousands (thousands of (thousands(C) - (D)of yen)(thousandsof yen)yen)of yen)(Note)
of yen)BeneficiaryInterest in
Real Estate

Meiji Yasuda Life
Osaka Umeda
Bldg.

Jun.
26,
2009

10,600,000 7,298,068

3,301,931

1,898 3,300,033

BeneficiaryInterest in
Real Estate

StrasseIchibancho

Jun.
26,
2009

1,800,000 3,951,596 (2,151,596)

2,498 (2,154,094)

Real Estate

Olinas Tower

Preferred
Securitues

Meieki Nichome
Kaihatsu Special
Purpose Company
Preferred Securities

Total

Jun. 29,2009

31,300,000

Jun.
29,
2009
31,300,000

344,651(38,651)(38,651)

12,706,000 11,594,317

1,111,682

4,396 1,107,286

306,000(Note) Values of "acquisition price" or "sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.

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

39

(3) Survey on Values of Specified Assets, etc.
A. Real Estate Transactions

Acquisition Price orSale Price (Note 1)(thousands of yen)

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

Acquisition or Sale

Real Estate NameTransaction
Date

Sale

Meiji Yasuda Life
Osaka Umeda Bldg.

Jun. 26, 2009

10,600,000

10,600,000

Sale

Strasse Ichibancho

Jun. 26, 2009

1,800,000

1,790,000

Olinas Tower (Note 3)

Jun. 29, 2009

31,300,000

31,400,000

Acquisition(Note 1) Values of "acquisition price or sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.
(Note 2) Surveys on the values of specified assets, etc. indicated above were conducted by Ernst & Young ShinNihon LLC at times of acquisition or sale of properties based on
the Report No. 23, "surveys on values of specified assets, etc. of investment trusts and investment corporations," issued by the Industry Audit Committee of the JapaneseInstitute of Certified Public Accountants. Furthermore, aside from the value surveys shown above, JPR has received survey reports on locations, addresses and other items
needed for identifying relevant real estate, etc.
(Note 3) As for Olinas Tower, JPR acquired ownership of land with land leasehold and fixed-term land leasehold from a different owners on June 29, 2009. The acquisition price andsurvey value above indicate total of ownership of land with land leasehold and fixed-term land leasehold.

B. Securities Transactions
Acquisition or Sale

Security Name

No. of Units

Transaction
Date

Sale

Meieki Nichome
Kaihatsu TMK (SPC)
Preferred Securities

6,120

Jun. 29, 2009

Acquisition Price orSale Price (Note 1)(thousands of yen)

Survey Value ofSpecified Assets (Note 2)(thousands of yen)
182,000

306,000(Note 1) Values of "acquisition price or sale price" are amounts excluding expenses required for acquisition or sale of the relevant securities.
(Note 2) Surveys on the values of specified assets, etc. indicated above were conducted by Ernst & Young ShinNihon LLC at times of acquisition or sale of properties based on
the Report No. 23, "surveys on values of specified assets, etc. of investment trusts and investment corporations," issued by the Industry Audit Committee of the JapaneseInstitute of Certified Public Accountants. Furthermore, aside from the value surveys shown above, JPR has received reports on the security, number of units and other items
needed for identifying relevant securities.
(Note 3) JPR sold 6,120 units of the preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securities of 3%) that it held out of the total of 204,000 units.

(4) Transactions with Interested Parties and Major Shareholders
A.Transaction Status
Category

Total Amount(Thousands of yen)Transaction Price, etc.
Acquisition Price, etc.

Sale Price, etc.

￥31,300,000￥12,706,000

Of which, acquisition pricefrom interested parties, etc.

Of which, sale priceto interested parties, etc.

￥31,300,000 (100.0%)￥12,706,000 (100.0%)

Breakdown of Transactions with Interested Parties, etc.
(-%)

10,600,000 (83.4%)

Kinshicho Project Tokutei
Mokuteki Kaisha

14,773,600 (47.2%)(-%)

Tokyo Tatemono Co., Ltd.

16,526,400 (52.8%)

2,106,000 (16.6%)

Total

31,300,000 (100.0%)

12,706,000 (100.0%)

Godo Kaisha Next Stage40

B.Value of Fee Expenses
Category(Thousands of yen)

Paid Amount(B)

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

Tokyo Tatemono Co., Ltd.

174,245

76.6

Yasuda Real Estate Co., Ltd.

9,753

4.3

Meiji Yasuda Building Management, Co., Ltd.

22,377

9.8

Yuraku Real Estate Co., Ltd.

3,361

1.5

Tokyo Tatemono Co., Ltd.

376,363

73.0

Yasuda Real Estate Co., Ltd.

22,7194.4

Meiji Yasuda Building Management, Co., Ltd.

44,521

8.6

Tokyo Tatemono Co., Ltd.

7,218

78.8

Yasuda Real Estate Co. Ltd.

1,939

21.2

Breakdown of Transactions with Interested Parties
Total Paid Fees(A)

Management Fees
(Note 2)

Outsourcing Fees

Tenant Brokerage Fees,
etc.

Paid Party

227,376515,222

9,157(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreement with JPR
and is regulated as designated in Article 123 of the Enforcement Order of as the Investment Trusts and Investment Corporations Law and the major shareholders of the asset
management company regulated defined in Article 29-4-2 of the Financial Instruments and Exchange Law.
(Note 2) The management fees indicated in the above table include construction management fees (total of 16,106 thousand yen for JPR) appropriated as assets and nothandled as expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties during the 15th fiscal period.
Tokyo Tatemono Co., Ltd.

251,951 thousand yen

Tokyo Tatemono Techno-build Co., Ltd.

116,170 thousand yen

Yasuda Real Estate Co., Ltd.

9,648 thousand yen

Meiji Yasuda Building Management Co., Ltd.

18,942 thousand yen

Taisei Corporation

271,111 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
the class 1 financial instruments transaction business, class 2 financial instruments transaction business, land andbuilding transaction business, or real estate syndication business, and has no such transactions with JPR.

41

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

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

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

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

42

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

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

(2) Units HeldThe number of investment units held by Tokyo Realty Investment Management, Inc. has remained at 100
units through June 30, 2009 with the total investment unchanged at 20 million yen. The amount of units heldis immaterial versus the total units outstanding of JPR.

Other
(1) Notice

There were no major issues related to the conclusion or changes of major contracts approved by JPR’s Board of
Directors meeting during the fiscal period.

(2) Other

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

43Balance Sheets(As of June 30, 2009 and December 31, 2008)(Thousands of yen)

End of 15th Fiscal Period

ASSETS
CURRENT ASSETS :Cash and deposits(as of June 30, 2009)(information only)(as of December 31, 2008)￥ 20,987,712￥ 19,706,912

Cash and deposits in trust

14,015,752

14,860,678

Accounts receivable-trade198,512

172,743

Prepaid expenses

184,233

164,484

92

74

Deferred tax assets
Consumption taxes receivable
Other
Total current assets

173,712

10,05035,917,383

34,914,943

Buildings

45,628,942

30,497,213

Accumulated depreciation(3,354,991)(2,835,784)

Buildings, net

42,273,950

27,661,429

Buildings in trust

72,018,462

77,986,384(14,114,110)(14,222,590)

57,904,351

63,763,794

Accumulated depreciation
Buildings in trust, net
Structures
Accumulated depreciation

28,482

21,379(3,143)(2,468)Structures, net

25,33918,910

Structures in trust

86,71487,888(24,316)(22,094)

Accumulated depreciation
Structures in trust, net

62,39865,794

Machinery and equipment

506,001

366,611

Accumulated depreciation(142,903)(124,786)

Machinery and equipment, net

363,098

241,824

Machinery and equipment in trust

1,301,822

1,398,104

Accumulated depreciation(707,751)(699,272)

Machinery and equipment in trust, net

594,070

698,831

Tools, furniture and fixtures

26,80918,492

Accumulated depreciation(9,328)(7,689)Tools, furniture and fixtures, net

17,481

10,803Tools, furniture and fixtures in trust

86,735

86,167(38,702)(33,331)

Accumulated depreciation
Tools, furniture and fixtures in trust, net

48,033

52,835

Land

80,501,678

63,879,374

Land in trust

109,229,828

115,375,371

Construction in progress
Total property, plant and equipment

INTANGIBLE ASSETS :Leasehold right
Other
Total intangible assets

INVESTMENTS AND OTHER ASSETS :% Change

357,367

NONCURRENT ASSETSPROPERTY, PLANT AND EQUIPMENT :46,301

514,234

291,066,531

272,283,204

1,542,818

1,542,818

4,854

8,434

1,547,673

1,551,252

Investment securities

2.9%

6.9%

(0.2%)

344,651

Lease and guarantee deposits

49,00017,000Long-term prepaid expenses

472,336

18,249521,336

380,801

293,135,541

274,215,258

Investment corporation bond issuance costs

110,596

123,137

Total deferred assets

110,596

123,137(10.2%)￥329,163,520￥309,253,338

6.4%

Other
Total investments and other assets
Total noncurrent assets

DEFERRED ASSETS :TOTAL ASSETS(Note) See accompanying Notes to Financial Statements

44

End of 14h Fiscal Period

900
36.9%
6.9%

(Thousands of yen)

End of 15th Fiscal Period(as of June 30, 2009)

End of 14h Fiscal Period(information only)(as of December 31, 2008)% Change

LIABILITIESCURRENT LIABILITIES :Accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment
corporation bond

￥ 1,511,945￥ 1,317,067

16,152,000

17,172,000

716,000
17,000,000

10,000,000

Accounts payable-other623,163

520,838

Accrued expenses

277,368

276,912

Income taxes payable658

Accrued consumption taxes

660
164,797

Advances received

1,166,950

1,160,320

Total current liabilities

37,448,086

30,612,596

Investment corporation bond

37,500,000

44,500,000

Long-term loans payable

78,862,000

57,583,000

Tenant leasehold and security
deposits

6,028,254

4,463,054

Tenant leasehold and security
deposits in trust

10,267,498

10,936,415

Total noncurrent liabilities

132,657,752

117,482,470

12.9%

Total liabilities

170,105,838

148,095,067

14.9%

156,725,438

156,725,438

2,332,243

4,432,832

22.3%

NONCURRENT LIABILITIES :NET ASSETSUNITHOLDERS' EQUITY :Unitholders' capital
Surplus
Unappropriated retained earnings(undisposed loss)

2,332,243

4,432,832(47.4%)

Total unitholders' equity

159,057,682

161,158,271(1.3%)

Total net assets

159,057,682

161,158,271￥ 329,163,520￥ 309,253,338

Total surplus

TOTAL LIABILITIES AND NET ASSETS

6.4%(Note) See accompanying Notes to Financial Statements

45

Statements of Income and Retained Earnings(For the six-month periods ended June 30, 2009 and December 31, 2008)(Thousands of yen)

15th Fiscal Period
OPERATING REVENUE :Rent revenue-real estate

14h Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)￥11,030,526￥11,171,677

28.3%

Gain on sales of real estate properties

3,300,033

Total operating revenue

14,330,560

11,171,677

Expenses related to rent business

4,961,198

5,022,008

Loss on sales of real estate properties

2,154,094

4,438

Loss on sales of investment securities

38,651

Asset management fee

345,480

416,750

Administrative service and asset custody fees

66,52065,834

Directors' compensations

6,600

6,600

Trust fees

69,43456,937OPERATING EXPENSES :36.4%

Other operating expenses

120,087

116,584

Total operating expenses

7,762,068

5,689,154

6,568,491

5,482,523

OPERATING INCOME
NON-OPERATING INCOME :24,164

Income on settlement of management
association accounts

40,81632,594

Other

6,205

3,049

Total non-operating income

71,18635,643

Interest expenses

550,706

571,148

Borrowing expenses

26,20019,481

Interest expenses on investment
corporation bonds

473,593477,065

12,54012,748

NON-OPERATING EXPENSES :Other
Total non-operating expenses

ORDINARY INCOMEEXTRAORDINARY LOSS

4,256

4,213

1,067,297

1,084,657

5,572,380

4,433,509

25.7%

2,332,930

4,433,509(47.4%)

1,038

1,044

3,239,449

Total extraorinary loss

3,239,449

Income taxes-current
Income taxes-deferred
Total income taxes

NET INCOMERETAINED EARNINGS BROUGHT FORWARD

UNAPPROPRIATED RETAINED EARNING(UNDISPOSED LOSS)(Note) See accompanying Notes to Financial Statements

46(1.6%)

Loss on penalty

INCOME BEFORE INCOME TAXES

19.8%
99.7%

Interest income

Amortization of investment corporationbond issuance costs% Change

(18)

(41)

1,019

1,002

1.7%

2,331,911

4,432,507(47.4%)

332

325

2.2%

￥ 2,332,243￥ 4,432,832(47.4%)

Statements of Changes in Net Assets(For the six-month periods ended June 30, 2009 and December 31, 2008)(Thousands of yen)

Unitholders' capital
BALANCE AS OF JUNE 30, 2008

￥156,725,438

Changes of items during the period
Distributions from surplus
Net income

BALANCE AS OF DECEMBER 31, 2008

￥156,725,438

Changes of items during the period
Distributions from surplus
Net income

BALANCE AS OF JUNE 30, 2009

￥156,725,438

Surplus

Total net assets￥4,451,575￥161,177,014(18,742)(18,742)(4,451,250)(4,451,250)

4,432,507

4,432,507

4,432,832

161,158,271(2,100,588)(2,100,588)(4,432,500)(4,432,500)

2,331,911

2,331,911￥2,332,243￥159,057,682(Note) See accompanying Notes to Financial Statements

47

Notes to Financial Statements
Basis of Presenting Financial Statements
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its
financial statements in accordance with accounting principles generally accepted in Japan (JapaneseGAAP), including provisions set forth in the Investment Trust Law, the Company Law and the related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR,
which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial
statements, certain reclassifications have been made to the financial statements issued domestically inorder to present them in a format which is more familiar to readers outside Japan. In addition, the notes
to financial statements include information which might not be required under Japanese GAAP but ispresented herein as additional information.
JPR's accounting period ends at the end of June and December. JPR's 15th accounting period began on
January 1, 2009 and ended on June 30, 2009.

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

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

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

2. Accounting for Deferred Assets

Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are depreciated utilizing the straight-line method over theredemption periods.

48

3. Standards for Recording Revenues and Expenses
Accounting treatment of Taxes on Properties and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR adopt the methodof charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental
expenses. Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers
during the first fiscal period as an acquisition cost, not as expenses, in connection with the acquisition ofreal estate or entrusted beneficiary interest with real estate as entrusted property. During the 15th fiscal
period, the amount equivalent to the property taxes included as an acquisition cost of real estate totaled
54,005 thousand yen .

4. Other Significant Items Fundamental to Preparing the Financial Statements(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust.
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted
properties as well as all revenue and expense accounts generated by the property in trust arerecorded in relevant accounts on the balance sheets and statements of income.
Fur ther more, the following mater ial accounts are separately stated in the balance sheet for
properties in trust recorded in relevant accounts.
a. Cash and deposits in trust.
b. 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 trust.
c. Tenant leasehold and security deposits in trust.
(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

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

End of 15th Fiscal Period
Assets pledged as collateral are as follows
Cash and deposits in trust
Buildings (net)
Buildings in trust (net)
Structures in trust (net)
Machinery and equipment (net)
Machinery and equipment in trust (net)
Tools, furniture and fixtures in trust (net)LandLand in trust
Total

Secured liabilities are as follows
Long - term loans payable
Tenant leasehold and security deposits
Total

End of 14th Fiscal Period(as of June 30, 2009)(information only)(as of December 31, 2008)￥ 2,211,749
137,588
6,976,412
3,740
4,965
12,2452,262
399,183
8,536,013￥18,284,161￥ 2,164,766
139,457
7,091,290
3,966
5,136
13,6392,147
399,183
8,536,013￥18,355,601

End of 15th Fiscal Period

End of 14th Fiscal Period(as of June 30, 2009)(information only)(as of December 31, 2008)￥ 9,183,000
15,536￥ 9,198,536￥ 9,183,000
15,536￥ 9,198,536

49

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

End of 15th Fiscal Period

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

End of 14th Fiscal Period(as of June 30, 2009)(information only)(as of December 31, 2008)

December 1, 2008
￥16,000,000

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

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

End of 15th Fiscal Period

End of 14th Fiscal Period(as of June 30, 2009)(information only)(as of December 31, 2008)￥50,000￥50,000

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

15th Fiscal Period

14th Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)￥8,382,866
1,578,427
209,490
16,072
10,74820,674
10,218,280￥8,462,475
1,635,289
219,033
16,796
10,974
21,36910,365,939

Incidental income
585,718
Time-based parking revenues
8,445
Cancellation charges
2,584
Income equivalent to expenses for restoration to as is condition 176,643
Other miscellaneous income
38,855Sub total
812,246￥11,030,526
Total rent revenue-real estate

714,088
8,505
18,31022,953
41,879805,738￥11,171,677

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

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

50￥

515,222698,282
935,273
28,646242,956
211,269
463,436
1,795,533
70,579￥4,961,198￥￥6,069,328￥6,149,669

533,699
802,804
849,826
33,244240,405
226,458
455,689
1,799,159
80,720￥5,022,008

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

15th Fiscal Period(January 1, 2009 June 30, 2009)

Gain on sales of real estate properties
Proceeds from sales of real estate properties
Costs of sales of real estate properties
Other related sales expense
Total gain on sales of real estate properties

14th Fiscal Period(information only)(July 1, 2008 December 31, 2008)￥ 10,600,000
7,298,068
1,898￥ 3,300,033

Loss on sales of real estate properties
Proceeds from sales of real estate properties
Costs of sales of real estate properties
Other related sales expense
Total loss on sales of real estate properties￥ 1,800,000
3,951,596
2,498￥ (2,154,094)￥ 3,520,000
3,489,138
35,300￥(4,438)

3. Loss on Penalty
The amount comprises 2,227,047 thousand yen as cancellation penalty and incidental expenses
that accompanied the cancellation of the purchase agreement of KM Fukugo Bldg. (tentative name),and 1,012,401 thousand yen as cancellation penalty and incidental expenses that accompanied thecancellation of the purchase agreement of preferred securities issued by Meieki Nichome Kaihatsu SPC.

Notes to Statements of Changes in Unitholders' Equity
15th Fiscal Period

The number of units outstanding

14th Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)

625,000 units

625,000 units

15th Fiscal Period

14th Fiscal Period

Tax Effect Accounting(Thousands of yen)

1. Breakdown of Main Causes for Deferred Tax Assets
and Deferred Tax Liabilities(Deferred tax assets)(January 1, 2009 June 30, 2009)Enterprise tax not deductible for income tax purposes
Local enterprise special tax not deductible for income tax purposes
Lump-sum depriciated assets not deductible for tax purposes
Total deferred tax assets
Net deferred tax assets

￥ 12
9
71
92
￥ 92

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

15th Fiscal Period

Effective statutory tax rate
(Adjustment)
Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting(information only)(July 1, 2008 December 31, 2008)

￥ 21
52
74
￥ 74

14th Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)39.33%

39.39%(39.31%)
0.02%
0.04%

(39.38%)
0.01%
0.02%

Property and Equipment Leased to JPR
15th Fiscal Period(January 1, 2009 - June 30, 2009)

14th Fiscal Period (information only)(July 1, 2008 - December 31, 2008)

No property and equipment leased to JPR

No property and equipment leased to JPR

51

Transactions with Interested Parties
15th Fiscal Period(January 1, 2009 - June 30, 2009)

14th Fiscal Period (information only)(July 1, 2008 - December 31, 2008)

No transactions with interested parties

No transactions with interested parties

Per Unit Information(Yen)

15th Fiscal Period

Total net assets per unit
Net income per unit

14th Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)￥254,492￥3,731￥257,853￥7,092

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

15th Fiscal Period

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

52

14th Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)￥2,331,911￥4,432,507￥2,331,911￥4,432,507

625,000 units

625,000 units

Distribution Information(Yen)

15th Fiscal Period

1. Unappropriated retained earnings
2. Distributions(Distribution per unit)
3. Retained earnings brought forward

14th Fiscal Period(January 1, 2009 June 30, 2009)(information only)(July 1, 2008 December 31, 2008)￥2,332,243,786￥4,432,832,578

2,331,875,000(3,731)￥
368,786

4,432,500,000(7,092)￥
332,578

In accordance with the distribution policy stipulated in Article 28-2 of the Articles of Incorporation, JPR
will be able to distribute only to the extent of the profits and needs to distribute in excess of 90% of JPR's
distributable income as stipulated in Article 67-15 of the Special Taxation Measures Law. Based on thispolicy, JPR decided on a total distribution of 2,331,875,000 yen for the 15th fiscal period (4,432,500,000 yen
for the 14th fiscal period). This is the maximum value arrived at when the number of units outstanding(625,000 units) is multiplied by an integer, within the limit of retained earnings for the respective fiscal
period. Furthermore, JPR does not make cash distributions in excess of the profit as stipulated in Article28-4 of the Articles of Incorporation.

53

Report of Independent Auditors

54

Statements of Cash Flows (Information Only)(For the six-month periods ended June 30, 2009 and December 31, 2008 )(Thousands of yen)

15th Fiscal Period

14th Fiscal Period￥ 2,332,930￥ 4,433,509

1,796,620

1,800,230(January 1, 2009 June 30, 2009)(July 1, 2008 December 31, 2008

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES :Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs

12,54012,748Interest income(24,164)(32,594)

Interest expenses

1,024,299

1,048,213

Decrease (increase) in accounts receivable-trade(25,769)

49,863

Decrease (increase) in consumption taxes receivable(357,367)

Decrease (increase) in prepaid expenses(19,748)(45,648)

Increase (decrease) in accounts payable

30,486(12,795)

Increase (decrease) in accounts payable-other

10,302(21,451)(164,797)(1,804)

Increase (decrease) in advances received

6,629(8,437)

Decrease in property, plant and equipment

504,550

Increase (decrease) in accrued consumption taxes

Decrease in property, plant and equipment in trust
Decrease in investment securities

11,246,034

3,489,138

344,651

Other, net(675,595)(28,115)

Subtotal

16,041,605

10,682,855

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

Net cash provided by (used in) operating activities

24,16432,594(1,023,844)(1,050,505)

639(4,490)15,042,565

9,660,454(31,751,199)(9,825,433)(410,147)(351,440)

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets(314)

Payments for lease and guarantee deposits(32,000)

Repayments of tenant leasehold and security deposits received(83,457)

Proceeds from tenant leasehold and security deposits received

1,679,365

374,807

Repayments of tenant leasehold and security deposits in trust received(806,563)(247,530)

Proceeds from tenant leasehold and security deposits in trust received(79,008)

252,889

117,273(31,151,426)(10,011,333)

Increase in short-term loans payable

5,280,000

18,692,000

Decrease in short-term loans payable(6,300,000)(16,312,000)

Proceeds from long-term loans payable

22,020,000

3,400,000

Net cash provided by (used in) investment activities
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES :Decrease in long-term loans payable(25,000)

Dividends paid

(4,430,264)(4,450,277)

Net cash provided by (used in) financing activities

16,544,735

1,329,722

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

435,874

978,843

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

34,567,590

33,588,746￥35,003,464￥34,567,590

CASH AND CASH EQUIVALENTS AT END OF PERIOD

55

Significant Accounting Policies
Scope of funds (cash and cash equivalents) in the Statements of Cash Flows
Funds (cash and cash equivalents) in the Statements of Cash Flows include the following :(1) Cash on hand and cash in trust(2) Deposits placed with bank and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash, have insignificant risk of price fluctuationand original maturities of three months or less from the acquisition date.

Notes to Statements of Cash Flows(Thousands of yen)

15th Fiscal Period
Breakdown of cash and cash equivalents
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

56

14th Fiscal Period(January 1, 2009 June 30, 2009)
As of June 30, 2009

(information only)(July 1, 2008 December 31, 2008)
As of December 31, 2008

￥20,987,712￥19,706,912

14,015,752￥35,003,464

14,860,678￥34,567,590

JPR Investment Policies (Reference)
A. INVESTMENT POLICIESBasic Policies
JPR's basic investment strategy centers on investment in urban commercial real estate. The Company will
invest primarily in real estate, which comprises superior urban office buildings and retail properties foundin thriving commercial areas, the land on which they are located, as well as in asset-backed securities thathave such real estate as their primary investments. In light of the returns and risks of these investments,
the Company will invest not only in Tokyo but will attempt to diversify into other cities so as to maximize
portfolio return.
The Company will diversify investments in terms of both tenants and properties, taking into accountthe amount of investment per property, and will thereby seek to achieve stable medium- and long-term
growth. Investment ratio targets are as shown on page 58 under "Investment stance."
Note: For the definitions of "real estate" and "asset-backed securities that have real estate as their primary investments," please refer to the next section
under " Types of Investment Assets"

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

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

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

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

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

Real Estate Asset

Target Ratios
By Asset Class

The target allocation ratio between office buildings and retail properties
based on acquisition price shall generally be 8:2

By Location

The target allocation ratio between Tokyo and other cities
based on acquisition price shall generally be 6:4

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

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

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

ii) Use
JPR's investment targets primarily comprise excellent office buildings (urban commercial facilities) and retailproperties found in thriving commercial areas. (The targets cover other assets including building leaseholdsof the office buildings and retail properties, the leaseholds and surface rights of the land on which they arelocated, and marketable securities and trust beneficiary interests backed by such real estate.)
JPR will determine the allocation ratio of these assets in the portfolio based on full considerations of theeconomic situations, real estate market trends and other factors for respective occasions. The target allocation
ratio between office buildings and retail properties based on acquisition price shall generally be 8:2.
iii) Region
JPR shall work to realize a diversification of the portfolio, not limited to Tokyo but investing in regional cities,
primarily in consideration of the earthquake risks and risks associated with individual market conditions and inorder to generate more cash flow.
The target allocation ratio between Tokyo (that combines Tokyo CBDs and Greater Tokyo) and other cities
based on acquisition price shall generally be 6:4. JPR shall determine the allocation ratio of the portfolio by
location based on full considerations of the economic situations, real estate market trends and other factors ofrespective regions.

The table below indicates the definitions of the regions.
RegionCategory

58

Tokyo CBDs

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

Greater Tokyo

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

Other Cities

All other areas in Japaniv) Tenants
Rental revenues from any individual tenant (total rental revenue when the tenant occupies multiple
compartments and/or properties) will, in principle, be limited to less than 10% of total rental revenues.
("Rental revenues" includes common charges, parking revenues and storage revenues, but does not include
additional usage fees such as after-hours air-conditioning charges.) This ratio may be exceeded, however, if
there is any potential for tenant changes or if warranted by general considerations of leasing conditions andother factors.
v) Asset-backed securities, etc. primarily investing in real estate
The total after-investment value of asset-backed securities shall, in principle, be limited to less than 10% of the
net worth of the Company. Investment in asset-backed securities assumes that there will be an opportunity toobtain the relevant property, etc., at the end of the asset-backed security period.
vi) Investment policies for development projects
The Company will, in principle, acquire only real estate that generates or is expected to generate stable rental
revenues or similar revenues at the time of acquisition.
The Company will not engage in development investments (projects in which the Company itself develops
property from land and builds buildings). However, the Company may invest in buildings under construction
by third parties prior to their completion if sufficient potential to secure tenants after construction isdetermined and the buildings are confirmed as non-development investments. In addition, the Company may
invest in rebuilding projects for properties that it has already acquired, provided that sufficient potential tosecure tenants after rebuilding is determined and the projects are confirmed as non-development investments.
vii) Equipment and fixtures investment policies
The Company will invest in equipment and fixtures in accordance with an efficient upkeep plan created foreach property and designed to maintain and improve the competitiveness of the property from medium- andlong-term perspectives. In principle, such investments will be within the scope of the depreciation expense of
the individual property, but final decisions will be made in light of the depreciation expense for the portfolio asa whole. However, repairs to common areas will be implemented quickly by the Company from the perspectiveof tenant operational policies, and reinforcements will be made quickly for buildings requiring earthquake
resistance reinforcements in light of the status of tenant operations.
viii) Insurance policiesa) Criteria for selecting underwriting insurance companies:
The Company will select fair underwriting insurance companies through independent brokers.
The underwriting insurance company will, in principle, have an insurance rating of A3 or A- or betterfrom Moody's Investors Service Inc. (referred to as "Moody's" hereinafter) or Standard & Poor's.
b) Earthquake insurance coverage criteria:
The decision to cover earthquake insurance will be made in light of comparisons between thepotential impact of the disaster and property insurance premiums based on the PML for the entire
portfolio. Earthquake insurance may be purchased individually for properties that have high PML.
Note : "PML" refers to the probable maximum loss in the event of an earthquake. PML may be calculated for individual properties
or for the portfolio as a whole. While there is no strict definition of PML (valuation methods will differ depending on the institution
conducting the survey), it is generally found by calculating the probable damage from the largest foreseeable earthquake during
the expected period of use (50 years is the useful lifetime ordinarily assigned to buildings; the largest foreseeable earthquake isa major earthquake of a size seen once every 475 years, having a 10% probability of occurring during any 50 year span). The figure
represents the ratio of projected expenses for restoration of damage to the price of reacquisition.

ix) Sales policya) The Company will select real estate, asset-backed securities that have real estate as their primary
investments, and other investments in its holdings to be sold based on overall considerations of thecurrent status of the asset to be sold, projections of its future profitability and changes in asset value,
and the asset allocation of the portfolio as a whole.
b) The Company will determine asset values each fiscal term and an investment policy committee will
study whether to sell or hold any property that has declined more than 20% in terms of appraisedvalue compared with book value. In addition, the Company may also consider the sale of otherproperties as it sees fit, as warranted by market conditions and other factors. The following are themain considerations in determining sales:
Market forecast
Development forecast for the surrounding area
Profitability forecast
Estimated amount of future investments
Forecast changes in valuation
Considerations of the portfolio as a whole (diversification by geographical location, tenant andasset class, etc.; impact on dividends, etc.)

59x) Value-up properties
Value-up properties refer to those properties that exhibit the potential for an increase in profitability and asset
value, and have an immediate income stream on acquisition, along with any of the following characteristics:
1. An occupancy rate of less than 80% at the time of acquisition
2. Significant investment return following effective renovation work
In principle, value-up properties occupy a maximum 15% of the total property portfolio (based on acquisition
price). The additional acquisition of value-up properties is also subject to a total portfolio occupancy rate inexcess of 90%.
Utilizing the know-how of its asset management company, the Company implements the following key strategies
in the management of value-up properties:
1. Reinforce leasing activities with the aim of improving the occupancy rate
2. Carry out effective renovations to enhance market competitiveness3. Implement cost controls by increasing efficiencies in management structure
Value-up properties will be reclassified as core properties, as defined below, when the Investment
Committee judges that the properties have realized enhanced values. The Company will consider thesale of value-up properties as one method to realize asset value appreciation.
xi) Core properties
Core properties refer to office buildings other than value-up properties. Core properties are
positioned as those properties that contribute to the profit stability of the overall portfolio.

Investment Standards
When investing in individual real estate properties, asset-backed securities that have realestate as their primary investments, or other investments, the Company will, prior to making
the investment, perform a general evaluation that considers the current status, future
profitability, risk, location, building and facilities maintenance and management, deteriorationand obsolescence, earthquake resistance, rights, contracts with current tenants, environment,
topography, as well as other factors.
After acquisition of real estate, asset-backed securities that have real estate as their primary
investments or other investments, the Company will make ongoing and effective investments
in facilities and equipment so as to maintain and improve the value and competitiveness of theasset, and will seek to stabilize and expand profitability by increasing revenues and reducing
costs.
The major specific investment criteria of the Company are as follows:i) Geographical location
Real estate to be invested in will be located in the following areas:a) Major urban areas: CBDs in Tokyo, Yokohama, Kawasaki, Chiba, Saitama, Nagoya, Osaka,
Kyoto and Kobeb) Other government-designated cities: CBDs in Sapporo, Sendai, Hiroshima, Fukuoka,
Kitakyushu and othersc) Other core cities such as prefectural capitals with populations of 300,000 or more
When investing in retail properties, the Company will identify and determine an appropriate
business area for the property; analyze the business area from a variety of perspectives,
including population, demographic trends, number of households and average income;appropriately measure the latent buying power and growth potential of the business area;and determine the suitability of the tenants and their businesses to the business area. The
Company will also study and analyze competitiveness from a variety of perspectives,
including current market competition, plans for the opening of competitive stores in thevicinity, and future room for development.
ii) Sizea) Office buildings
In principle, the Company will invest in office buildings with total floor space of at least 3,300
square meters and floor space of approximately 330 square meters for each standard floor above
the second story level.
b) Retail properties
In principle, the Company will invest in retail properties of an appropriate size in light of the
future growth potential of their areas, as determined by local characteristics, business area scale
and the standard property size for similar businesses.

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

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

b) Unit ownership
The Company will, in principle, reserve for itself at least 75% of the voting rights inmeetings attended by unit owners in order to assure sufficient latitude in improvements.
However, it may make individual decisions based on a general evaluation of the nature andcreditworthiness of other unit owners.
The Company shall, in order to assure sufficient latitude in disposal of the property, confirm
whether special contracts or other agreements providing for preferential purchasing rights or
options among the other owners will be executed, and whether restrictions will be placed on
the transfer of rights, and if so, the nature of these restrictions.
The Company will attempt to ensure the stability of revenues by confirming the operationsof the management union (reserves, liability ratios, insurance, etc.) and will take suchindividual measures as are required. (This may include, but is not limited to, increasing
accumulated amounts within the Company itself, or providing for insurance on the joint
areas and registration of land rights separately from the management union.)

61c) Leaseholds
The Company will, in principle, invest in leaseholds as specified in the old Leasehold Law(Law No. 49 of 1921, including all subsequent amendments) and the Land and Building
Leasing Law (Law No. 90 of 1991, including all subsequent amendments).
The Company will carefully study the nature of the proprietary right holder of land and will
make its decision after fully investigating the impact of the provisions for rent revisions,charges for renewing the leasing contract, charges for approval of rebuilding proposals,
charges for the approval of sales proposals and other factors in concerning profitability.
d) Collateral rights and usufructuary rights
The Company will confirm the existence of mortgages or other collateral rights on the
proposed property at the time of purchase, and the possibility of extinguishing such rights on
closing.
The Company will make its decision after confirming the existence of usufructuary rights(for example, surface rights or easements) set forth by third parties and the impact that suchrights will have on profitability.

vii) Investment amounta) Minimum investment per property
The minimum investment per property (only the purchasing price, exclusive of taxes,
acquisition costs, etc.) will, in principle, be more than 1 billion yen. A property can beacquired for a lesser amount under the following circumstances:
When acquiring part of a property valued in total at over 1 billion yen
When acquiring a property with an appraisal value of more than 1 billion yen, but acquired
after negotiation for a lesser amountIn cases where several properties are being acquired together as a package and theconcerned property is a subordinate assetb) Maximum investment per property
The ceiling on the investment amount per property will be one-third of the total investment
in real estate, asset-backed securities and other investments already held. Generally, however,properties that exceed this ratio can be acquired in cases where this is deemed advisable. The"total investment in real estate, asset-backed securities and other investments already held"refers to the total appraised value of investments up to the previous period, plus the price ofinvestments purchased in the current period (exclusive of taxes, acquisition costs, etc.), plus
the amount to be invested in the new property (exclusive of taxes, acquisition costs, etc.).
c) Restrictions on acquisition price
The acquisition price for investments including real estate and asset-backed securities will, in
principle, be limited to 105% of the appraised value of the investments. However, provided
that the property acquisition does not cause the total property acquisition fund to fall below
the NOI yield criterion for the current period, the above-mentioned appraised-value upper
limit of 105% can be exceeded in the following cases:
Properties that, by long-term fixed leasing contracts, are forecast to contribute to stable
cash flow and those that are expected to generate a certain profit for dividends in themedium- to long-term
Properties that, in terms of scale, location or general standpoint, are judged to contributeto an increase in total fund quality and can be expected to generate a certain profit for
dividendsviii) Selection guidelines concerning real estate acquisition ownership type
The Company acquires real estate under direct ownership or on an entrusted basis, acquiring
beneficiary interests to the property. The decision as to which form of ownership theCompany will take is determined after considering the requirements of the existing owner,
the cost of transferring rights and a number of other factors.

62

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

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

Borrowings and Issuance of Corporate Bonds
I) Basic policies
The Company will seek to actively expand the size of assets and maintain stable cash distributions toinvestors by achieving an effective combination of stable long-term fund-raising and flexible shortterm fund-raising.
II) Loan to value (LTV)
Loan to value (LTV) refers to a ratio calculated as shown below and will be used as a measurementof the ratio of liabilities to total assets of the Company.
LTV = (Borrowings + Corporate bonds) / Total assets
The Company will, in principle, maintain LTV at levels of no higher than 55%, but may temporarily
exceed this level due to the acquisition of properties or changes in appraised values.
Note: For purposes of this calculation, total assets refers to the amount shown in the assets column of the period-end balance sheet for the most recent
period prior to the calculation of LTV, and is found by adjusting the period-end book value of tangible fixed assets for the difference between the
period-end book value of the tangible fixed asset and its appraised value.

63

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

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

Commissioned General Tenant Agents
General tenant agencies will be commissioned to Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd.,
Taisei Corporation and other agents (Commissioned General Tenant Agents).

Property Transfer Agents
Tokyo Tatemono will be commissioned to provide property transfer services in order to ensure the smooth
execution of property purchases and sales. This will not be limited to the real estate, real estate leasing
rights and surface rights, but will include real estate in trust as well. Services will include confirmationof leasing status, confirmation of building and facility maintenance and management, confirmation andestablishment of rights, preparation and confirmation of delivery and other ancillary work.

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

64

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

Distributable Amount

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

2 Determining Amount of Distribution

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

Retained Earnings

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

Distribution of Cash Exceeding Earnings

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

Method of Distribution

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

Extinctive Prescription

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

65

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

Date of Establishment
September 14, 2001

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders
More than once every two years

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

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

Web Site

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

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

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

Cash distributions September

AugustAnnouncement of the fiscal
period results

Appropriate disclosure
on web site

June

Fiscal period ends

March
April

February

Announcement of
the fiscal period results

Cash distributions

Release of Business Report

This document contains a translation of selected information described in the Financial Statements and Performance Information Report
prepared pursuant to the Investment Trust Law of Japan and the Financial Instruments and Exchange Law, for the period from January
1, 2009 to June 30, 2009 of Japan Prime Realty Investment Corporation (JPR). This English language document was prepared solely
for the convenience of and reference by non-Japanese investors and is not intended to constitute a disclosure document. The Japanese
language Financial Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely identicalconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if
there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English documents,
the original Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.,
nor any of their respective directors, officers, employees, partners, unitholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of English translations or the selection of portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than contained in this document
in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon
as having been authorized by JPR, Tokyo Realty Investment Management, Inc., or any of their respective directors, officers, employees,
partners, unitholders, agents or affiliates. The financial statements of JPR have been prepared in accordance with generally accepted
accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions. Many provisions of this document contain information that constitute forward-looking statements.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may
differ materially from those in the forward-looking statements as a result of various factors.

66