Translation
Japan Prime Realty Investment Corporation
Financial Report for the 33rd Fiscal Period Results (January 1, 2018 – June 30, 2018)
August 14, 2018

REIT Securities Issuer:
Japan Prime Realty Investment Corporation
Listing:
Tokyo Stock Exchange
Securities Code:
8955
URL:
http://www.jpr-reit.co.jp/
Representative:
Satoshi Okubo, Executive Officer
Asset Management Company: Tokyo Realty Investment Management, Inc.
Representative:
Yoshihiro Jozaki, President and Chief Executive Officer
Contact:
Yoshinaga Nomura, Director and Chief Financial Officer TEL: +81-3-3231-1051
Scheduled date of submission of securities report:
September 26, 2018
Scheduled date of commencement of distribution payout:
September 10, 2018
Preparation of supplementary explanatory materials on financial results: Yes / No
Holding of briefing session on financial results:
Yes / No (for analysts and institutional investors)
1. Financial Results for the 33rd Fiscal Period (January 1, 2018 – June 30, 2018)[Amounts are rounded down to the nearest million yen, except for per unit figures.][% figures represent the increase (decrease) compared with the previous fiscal period](1) Operating Results
For the six months ended

June 30, 2018
December 31, 2017

Operating Revenues
million yen%
15,2040.4
15,141
0.2
Net Income per Unit
(EPU)
yen
7,243
7,221

For the six months ended

June 30, 2018
December 31, 2017

Operating Income
million yen
%
7,335
(3.1)
7,569
(2.3)

Ordinary Income
million yen
%
6,685
0.3
6,666
(2.9)

Net Income
million yen
%
6,686
0.3
6,665
(2.9)

Net Income / Net Assets

Ordinary Income /Total Assets

Ordinary Income /Operating Revenues
%
44.0
44.0

%
2.8
2.8

%
1.5
1.5

(2) Distributions
Distribution
per Unit(DPU)

ExceedingProfitDistribution
per Unit

ExceedingProfitDistribution
AmountDividend
Payout Ratio

Distribution /Net Assetsyenmillion yen
yen
7,245
6,687
0
June 30, 2018
7,223
6,666
0
December 31, 2017
(Note 1) Dividend payout ratio is rounded down to the first decimal place.

million yen
0
0

%
100.0
100.0

%
2.8
2.8

[excluding
exceeding profit
distribution
amount]Distribution
Amount

For the six months ended(3) Financial Position
As ofJune 30, 2018
December 31, 2017

Total Assets
million yen
446,297446,487

Net Assets
million yen
238,638
238,619

Net Assets / Total Assets
%
53.5
53.4

Net Asset Per Unityen
258,546
258,525(4) Cash Flows
Cash Flows fromOperating Activities
For the six months ended

June 30, 2018
December 31, 2017

Cash Flows from
Investing Activities

million yen
8,548
8,797

million yen(1,429)(205)

1

Cash Flows from
Financing Activities
million yen(6,801)(6,822)

Cash and Cash
Equivalents
at End of Period
million yen
33,181
32,864

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

2. Forecasts for the 34th Fiscal Period Ending December 31, 2018 (July 1, 2018 – December 31, 2018) andthe 35th Fiscal Period Ending June 30, 2019 (January 1, 2019 – June 30, 2019)[Amounts are rounded down to the nearest million yen, except for per unit figures.][% figures represent the increase (decrease) compared with the previous fiscal period]

Operating
Revenues

Operating
IncomeOrdinary
IncomeNet
IncomeDPU [excluding Exceedingexceeding profit
Profitdistribution per Distribution
unit]
Per Unit%yen
yenmillion yen% million yen% million yen% million yen
34th Fiscal Period
15,540
2.2
7,569
3.2
6,720
0.5
6,720
0.5
Ending December
31, 2018
35th Fiscal Period
15,449 (0.6)
7,503 (0.9)
6,739
0.3
6,738
0.3
Ending June 30,
2019(Reference) Estimated net income per unit for the 34th fiscal period ending December 31, 2018: 7,280 yen
Estimated net income per unit for the 35th fiscal period ending June 30, 2019: 7,300 yen

7,280

0

7,300

0

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(a) Changes in accounting policies accompanying amendments to accounting standards, etc.:(b) Changes in accounting policies other than in (a):(c) Changes in accounting estimates:(d) Retrospective restatement:

None
None
None
None

(2) Number of Investment Units Issued and Outstanding(a) Number of investment units (including treasury units) issued and outstanding at end of period
As of June 30, 2018:
923,000 units
As of December 31, 2017:
923,000 units(b) Number of treasury units at end of period
As of June 30, 2018:
0 units
As of December 31, 2017:
0 units(Note) With regard to the number of investment units, which serves as the basis for calculating net income per unit, please refer to“Per Unit Information,” on page 21.

* Presentation of the status of implementation of audit procedures
At the time of disclosure of this report, audit procedures for financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
* Explanation of the appropriate use of the forecast for management status, and other matters of special note
The forecasts for the 34th fiscal period ending December 31, 2018 and the 35th fiscal period ending June 30,
2019 are calculated as of August 14, 2018 based on the assumptions described on page 8 of this report. Accordingly,
actual operating revenues, operating income, ordinary income, net income, DPU and exceeding profit distribution
per unit may differ from the forecasts. Moreover, the forecasts should not be construed as a guarantee of the
distribution amount.

This is an English-language translation of original Japanese announcement on our website released on August
14, 2018. However, no assurance or warranties are given with respect to the accuracy or completeness of thisEnglish-language translation. The Japanese original shall prevail in the case of discrepancies between thistranslation and the Japanese original.

2Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Structure of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation”
set out in the most recent securities report (yuka shoken hokokusho) (submitted on March 26, 2018).
Furthermore, the following table indicates the property management company for a property that Japan Prime
Realty Investment Corporation (JPR) has acquired or for which the property management company has beenchanged since the submittal date of the latest securities report through August 14, 2018.
Property Name

Property Management Company

JPR Chiba Bldg.

Jones Lang LaSalle K.K.

2. Management Policy and Management Status(1) Management Policy
As of July 1, 2018, Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of
JPR, made partial amendments to its JPR Asset Management Guidelines that set forth specific policies ofmanaging JPR’s assets. While the Guidelines stipulate the major target property size (building with aminimum total floor space of approximately 1,000 tsubos) as a standard for investing in office properties,
the amendments make it possible to invest in properties that fall below the standard after taking into accountthe characteristics, etc. of individual properties. Moreover, necessary amendments were made to othermanagement policies in accordance with the current management status, etc. For details of the amendments
to the Guidelines, please refer to the extraordinary report (in Japanese) JPR submitted as of May 24, 2018.
Aside from the above, disclosure is omitted because there are no significant changes from the “Investment
Policy,” “Investment Targets” and “Distribution Policy” set out in the most recent securities report (submitted
on March 26, 2018).
(2) Management Status
1) Overview of Fiscal Period under Reviewa) Milestones of JPR
JPR was established on September 14, 2001 under the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, as amended), and was listed on the Tokyo Stock Exchange Real
Estate Investment Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding
investment units. With the subsequently implemented public offerings and other capital raising measures
by JPR, the number of investment units issued and outstanding totals 923,000 units as of the end of the
33rd fiscal period (June 30, 2018). JPR has assigned the asset management of its portfolio to TRIM,
through which JPR aims to maximize unitholder value by efficiently managing the portfolio primarily
comprising office properties and retail properties.
b) Management Environment
In the 33rd fiscal period, the Japanese economy remained on track for a moderate recovery, as
improvements in corporate earnings led to an increase in capital investment while consumer spending
showed a pickup under the solid employment and income environment, despite certain industries taking
a cautious stance on the business outlook. The overseas economy also continued to stay on a mild
recovery path, although political and economic risk factors including trade issues still exist nonetheless.
The Office Property Leasing Market
The supply and demand conditions in the office property leasing market of the 23 wards of Tokyo
remained tight as new demand for such positive development as setting up new offices, expanding theoffice spaces and moving to better locations continued to be strong. The upward trend of the rent levels
for new contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
The need of tenants to open stores remained strong for urban retail properties which JPR targets forinvestment. Consumption by inbound foreign tourists also showed robust results, and the leasing market
for urban retail properties continued to stay in good shape in good locations, such as Ginza, Omotesando
and Shinsaibashi.

3

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

The For-Sale Real Estate Market
In the for-sale real estate market, investors remain highly willing to purchase properties while blue-chipproperties are in short supply. With low-yield transactions continuing to prevail, the acquisition
environment remains harsh. Accordingly, investors continue to look for ways to effectively acquire
properties, such as diversifying the target assets for investment and conducting asset replacement.
c) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties
and office properties in regional cities, with the primary aim of improving the quality of the portfolio
and achieving stable growth of earnings while giving attention to balancing diversification of theportfolio, both in terms of location and asset type.
During the 33rd fiscal period, JPR investigated possible investments primarily in office properties in theTokyo area, but no acquisition was closed and completed. As of the end of June 2018, the balance of
JPR’s assets under management totaled 62 properties, or 435.0 billion yen on an acquisition price basis,
with the total leasable floor space standing at 478,117m2 and the number of tenants reaching 747.
Operational Management of Portfolio
In the office property leasing market in the 33rd fiscal period, the vacancy rate stayed at a low level,
given a more advanced improvement in the supply and demand balance in Tokyo and other areas. Under
such circumstances, JPR endeavored to attract new tenants through strategic leasing activities andenhance the satisfaction of existing tenants by keeping close cooperation with property managementcompanies and brokers, with an aim of enhancing earnings from the entire portfolio and improving its
occupancy rate. As a result of these efforts, the occupancy rate at the end of the 33rd fiscal period
increased 0.3 points period-on-period to 98.8%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and
Save Energy), JPR continued to proactively implement value enhancement works based on tenant needs
with an aim to create spaces where the workers feel satisfaction. As an endeavor to implement energysaving measures, JPR conducted renovation of air-conditioning systems and replacement of lighting
equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple properties.
With regard to initiatives on environmental issues, JPR has continuously obtained the DBJ Green
Building Certification*1, having acquired the Certification for 17 of the buildings it owns as of June 30,
2018. Moreover, in the GRESB*2 Real Estate Assessment (the survey conducted in 2017), JPR was
designated as “Green Star,” marking the fourth consecutive year of recognition with the highest ranking
in the survey. JPR was also granted a higher rank of “4 Stars” in the GRESB Rating, which makes relative
assessment based on total scores, for two consecutive years. Furthermore, JPR received a higher
assessment of “Rank A” in the CASBEE for Building Certification*3 for its Yakuin Business Garden.
*1 The DBJ Green Building Certification is a certification system established by Development Bank of Japan Inc., designed to selectsuperior real estate that meets the demand of the times, with a purpose of promoting properties that are environmentally friendly,
equipped to mitigate disaster and prevent crime, as well as meet the various social requirements surrounding real estate fromstakeholders (“Green Buildings”).
*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating
sustainability of real estate companies, REITs and real estate private placement funds, in terms of environmental friendliness andsocial nature. It is based on surveys conducted by a group of the same name composed of more than 60 organizations worldwide
such as European pension asset managers.
*3 CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for comprehensively assessing andranking the environmental performance of buildings with regard to aspects such as the enhancement of environmental quality andperformance including indoor comfort and consideration for the landscape, on top of the aspect of environmental considerationsuch as energy saving and the use of materials and equipment with a lower environmental burden.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on lengthening the debt maturity anddiversifying repayment dates, in an effort to make its financial base more solid and stronger against the
backdrop of the favorable fund procurement environment and low interest rates. In the 33rd fiscal period,
JPR borrowed 13.2 billion yen to fund the refinance of interest-bearing debts that matured during the
fiscal period. The average maturity of and the average interest on the new interest-bearing debts stood at
7.6 years and 0.57%, respectively, in contrast to 5.5 years and 0.99% for the relevant interest-bearing
debts before refinancing.
As of the end of the 33rd fiscal period, the balance of interest-bearing debts totaled 181.1 billion yen,4

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Periodwith balance of borrowings of 153.6 billion yen and balance of investment corporation bonds of 27.5
billion yen. The ratio of interest-bearing debt to total assets (Note 1) was 40.6%, long-term and fixedinterest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3) was 0.94% and average
maturity (Note 4) was 4.6 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial
institutions.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of June 30, 2018
Credit Rating Agency
Corporate Credit Rating (outlook)
Rating and Investment Information, Inc.
AA− (Stable)
Long-term: A (Stable)
S & P Global Ratings Japan Inc.
Short-term: A−1(Note 1) Ratio of interest-bearing debt to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debt / total interest-bearing debt
(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses(excluding expenses for early repayment of borrowings and for commitment line agreements), amortization of investment
corporation bond issuance costs and investment corporation bond management expenses, divided by the number of business daysfor each fiscal period and annualized by multiplying by 365 days / average balance of borrowings and investment corporation
bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 33rd fiscal period to therepayment deadlines for all interest-bearing debts based on the balance of each interest-bearing debt.

d) Operating Results and Cash Distributions
As a result of the aforementioned management performance, JPR posted operating revenues of 15,204
million yen, ordinary income of 6,685 million yen and net income of 6,686 million yen for its 33rd fiscal
period ended June 30, 2018. With regard to the cash distributions, JPR decided to distribute part of theretained earnings brought forward that had been internally reserved through the 32nd fiscal period, withthe aim of having the profit distributions deducted as expenses based on application of the special
provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate
income tax, etc. As a result, the cash distribution per unit came to 7,245 yen for the 33rd fiscal period.
2) Forecast for the Next Fiscal Perioda) Outlook for Management Status
Looking ahead, the Japanese economy is anticipated to recover moderately, given continued
improvements in the employment and income environments and supported by the effects of various
policies. However, attention should be paid to the uncertainty in overseas economies and the impacts offluctuations in the financial and capital markets.
In the office property leasing market, new supply in the 23 wards of Tokyo is expected to increase in2018 through 2020. However, as leasing of newly-constructed buildings remains strong, the market
situation in general is likely to stay in good shape. In this regard, JPR believes it will be able to fully
enjoy the positive impact of the good market situation as it has focused on improving tenant satisfaction
through proactive implementation of value enhancement works and provision of elaborate management
services. When conducting real estate transactions in the for-sale real estate market that continues toappear overheated, it will become even more important to discern the growth potential in earnings ofrespective properties. Considering the situation in which cap rates are decreasing in a low interest rateenvironment, it is required to firmly keep the attitude of vigorously selective investment for
implementing real estate investment that assumes possession of properties over the medium to long term.
i) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve
the quality of its portfolio and enhance its growth potential and stability over the long term. Given the
briskness in the office property leasing market, the for-sale real estate market sees a decrease in purchasecap rate and expected cap rate levels. Moreover, with properties remaining in short supply, there aredeals closed at prices that have factored in lower cap rates and rent increases. Accordingly, JPR will
fully investigate the growth potential of such properties when acquiring them. As for retail properties aswell as office properties in regional cities, JPR will work to invest in strictly selected blue-chip properties
that can keep stable revenues at a certain level in order to complement the stability of earnings from the5

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

entire portfolio. JPR will strive to acquire new properties under reasonable terms by negotiating prices
based on detailed market studies and property due diligence in considering properties.
Furthermore, in consideration of the change in the environments surrounding the office market, including
an increase in high-quality medium-sized office properties with favorable location, quality andperformance as well as solid demand for such office properties in accordance with the diversification oftenant needs, JPR considers that, while focusing investments as it has done to date on properties with aprescribed floor area or more as core targets, it should lead to continuous growth of JPR and enhanced
unitholder value through an increase in acquisition opportunities if JPR also targets properties that fall
below its current standard of office properties target property size of “building with a minimum total
floor space of approximately 1,000 tsubos as a rule,” after taking into account the characteristics, etc. of
individual properties. Based on this judgment, amendments were made to the JPR Asset Management
Guidelines, an internal rule of TRIM, with regard to the standard size of office properties as of July 1,
2018. With no change in its investment attitude of focusing on quality even after the amendments, JPR
will continue its vigorously selective investments going forward.
Moreover, JPR will continue to make investment decisions after a proactive collection of information
through such sources as sponsors of TRIM (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd.,
Taisei Corporation, Sompo Japan Nipponkoa Insurance Inc. and Meiji Yasuda Life Insurance Company),
accurately following market trends and carefully researching investment value, including the future
potential of candidate properties.
Furthermore, JPR will also investigate asset replacement in a prudent manner, while taking into
consideration the timing of implementation, in order to improve the quality of its portfolio and enhance
its growth potential over a long term.
ii) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs ofexisting tenants, encourage them to expand office spaces in the same buildings and renew contracts withupward revision of rents through endeavors to enhance tenant satisfaction, while continuously inviting
new tenants through strategic leasing activities. Specifically, JPR will conduct management andoperations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of a favorable leasing market and promote
rapid decision making- Conduct strategic value enhancement works with intent to improve property earnings and increasetenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans andenvironmental friendliness that command high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing thegovernment’s subsidy programsiii) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on
stability, JPR will remain engaged in conservative leverage control, targeting to basically keep the ratio
of interest-bearing debt to total assets at up to 50%. In debt financing, JPR will endeavor to further
lengthen the maturity with a focus on stability in an effort to diversify the repayment dates and reduce
the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arisein accordance with future changes in the financial environment. Moreover, JPR intends to work on fundprocurement through issuance of investment corporation bonds as it aims to diversify fund procurementmeans and sources.
iv) Information Disclosure
Positioning the proactive voluntary disclosure of information as one of its key management policies,
JPR voluntarily discloses information believed to be useful to investment decisions, along with theinformation disclosure required by the Tokyo Stock Exchange and set forth by laws and regulations,etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide expanded information including monthly occupancy rates ofall properties in the portfolio and historical data, as well as offer information for retail investors anddeliver video presentation on financial results sessions for securities analysts. Going forward, we arecommitted to further enriching the disclosure contents and providing information in a timely manner.
6Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Periodv) Significant Subsequent Events
There are no material subsequent events for this fiscal period.
b) Outlook for Management Status (Operating Results)
JPR expects the following management status in the 34th fiscal period (from July 1, 2018 to December
31, 2018) and the 35th fiscal period (from January 1, 2019 to June 30, 2019).
Operating revenues
Operating income
Ordinary income
Net income
Distribution per unit
Exceeding profit
distribution per unit

34th Fiscal Period
15,540 million yen
7,569 million yen
6,720 million yen
6,720 million yen
7,280 yen

35th Fiscal Period
15,449 million yen
7,503 million yen
6,739 million yen
6,738 million yen
7,300 yen

0 yen

0 yen

For the assumptions underlying this outlook for management status, please refer to “Assumptions forthe 34th fiscal period (from July 1, 2018 to December 31, 2018) and the 35th fiscal period (from January
1, 2019 to June 30, 2019)” shown below.
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly, the actual operating
revenues, operating income, ordinary income, net income, distribution per unit and exceeding profit distribution per unit mayvary due to changes in the circumstances. Moreover, the forecast above should not be construed as a guarantee of the distribution
amount.

7

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Assumptions for the 34th fiscal period (from July 1, 2018 to December 31, 2018)
and the 35th fiscal period (from January 1, 2019 to June 30, 2019)
Item

Assumptions
34th fiscal period: from July 1, 2018 to December 31, 2018 (investment period: 184 days)
Period35th fiscal period: from January 1, 2019 to June 30, 2019 (investment period: 181 days)
・The number of properties is assumed to be 62 properties owned by JPR as of August 14, 2018.
Property Portfolio ・In practice, this assumption may vary due to such events as acquisition of additional properties
or sale of existing properties.
・Real estate rental revenues are calculated on the basis of the lease contracts effective as of June30, 2018, with consideration given to such factors as the market environment and status ofnegotiations with tenants, as well as taking into account the impact of certain tenant move-ins
Operatingand move-outs, among other factors.
Revenues
・The assumed period-average occupancy rate at end of month is 99.0% for the 34th fiscal period
and 98.9% for the 35th fiscal period.
・For operating revenues, JPR assumes rents will be paid on time and that no tenants will fail or
decline to pay rents.
・Among rental expenses, which are the principal operating expenses, outsourcing expenses andother expenses excluding depreciation are calculated based on historical data, reflecting
variable factors of expenses and considering the information as of June 30, 2018. Outsourcing
expenses are assumed to be 600 million yen for the 34th fiscal period and 592 million yen forthe 35th fiscal period.
・For property taxes and city planning taxes, the amount attributed to the relevant fiscal period is
calculated out of the levied tax amount, and is assumed to be 2,211 million yen for the 34th fiscal
period and 2,350 million yen for the 35th fiscal period. In general practice, the property taxes andcity planning taxes levied on properties acquired are settled after prorating for the period with the
Operatingprevious owner at the time of acquisition, but JPR includes the amount equivalent to such settlement
Expensesin the acquisition costs for the property.
・For expenditures for the repair and maintenance of buildings, the amount expected to berequired in each of the relevant fiscal periods has been recorded. However, the expenditures
for repair and maintenance for each of the fiscal periods could differ significantly from theestimated amount, as expenditures may arise due to damage to the building caused by
unexpected factors, etc., and because the variance in amounts generally tends to grow fromyear to year and repair expenses do not arise regularly.
・Depreciation is calculated using the straight line method, including additional future capital
expenditures. Depreciation is assumed to be 1,952 million yen for the 34th fiscal period and1,984 million yen for the 35th fiscal period.
・As
for major non-operating income, JPR assumes income on settlement of management
Non-Operating
association accounts to be 3 million yen for the 34th fiscal period and 53 million yen for the
Income35th fiscal period.
・As for major non-operating expenses, JPR assumes 842 million yen for the 34th fiscal period
Non-Operating
and 810 million yen for the 35th fiscal period for interest paid, fees related to loan arrangement,
Expensesinterest expenses on investment corporation bonds and amortization of investment corporationbond issuance costs, etc.
・The ratio of interest-bearing debt to total assets as of August 14, 2018 stands at 40.6%, withinterest-bearing debts of 181,120 million yen (comprised of 153,620 million yen in long-termloans payable and 27,500 million yen in investment corporation bonds).
・It is assumed that all borrowings for which repayment will arrive during the 34th and 35th
fiscal periods will be refinanced, except for scheduled repayment of 100 million yen for the34th fiscal period.
・It
is assumed that funds for redemption of investment corporation bonds whose redemption
Interest-Bearing
date will arrive during the relevant fiscal periods will be secured through debt or issuance ofDebt Ratio
investment corporation bonds.
・Due to the above, the ratio of interest-bearing debt to total assets is expected to be 40.6% at theend of the 34th fiscal period and 40.6% at the end of the 35th fiscal period.
・The following formula is used in calculating the ratio of interest-bearing debt to total assets inthis table.
Ratio of interest-bearing debt to total assets =Expected total interest-bearing debt / Expected total assets x 100
Total Units
・The total number of investment units issued and outstanding is 923,000 units as of August 14,
Outstanding
2018, and it is assumed that no additional investment units will be issued.
・For distribution per unit, it is assumed that all revenues will be distributed based on the
distribution methods provided in the Articles of Incorporation.
Distribution Per ・Thereis the possibility that the distribution per unit may vary due to various factors including
Unitvariation of rental revenue due to transfer of assets under management and tenants moving out,
and unpredicted repairs and maintenance.

8Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Exceeding Profit
Distribution exceeding the profit (exceeding profit distribution per unit) is currently not
Distribution Per ・assumed.
Unit
・It is assumed that there will be no changes in legislation, taxation, accounting standards,
regulations applying to publicly listed companies, rules and requirements imposed by the
OthersInvestment Trusts Association, Japan that will impact the aforementioned forecast.
・It is also assumed that there will be no unexpected material changes in general economic andreal estate market conditions.
(3) Investment Risks
The description is omitted as there are no significant changes from the “Investment risks” disclosed in thelatest “Securities Registration Statement” (submitted on March 26, 2018).

9

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

3. Financial Statements(1) Balance Sheets(Thousands of Yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
LandLand in trust
Construction in progress
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs

Investment unit issuance expenses
Total deferred assets
Total assets

10

End of 32nd Fiscal
PeriodEnd of 33rd Fiscal
Period(Dec. 31, 2017)(Jun. 30, 2018)¥20,773,083
12,091,281
247,515
147,209
6,755
33,265,845¥21,115,284
12,066,268
519,291
125,944
9,946
33,836,736

57,873,121(15,814,180)
42,058,940
90,360,680(31,297,094)
59,063,585
50,400(20,751)
29,649125,868(77,356)
48,512757,836(459,233)
298,603
1,714,794(1,333,447)
381,347
87,998(46,364)
41,634
201,347(136,128)
65,218106,890,048
189,014,043
248
3,454
397,895,287

58,129,064(16,630,904)
41,498,159
91,196,238(32,358,841)
58,837,397
56,009(22,098)
33,911
128,416(80,101)
48,315766,233(479,329)
286,904
1,740,193(1,360,749)
379,443
92,427(50,840)
41,587
206,505(144,155)
62,350106,890,048
189,014,043
11,076842
397,104,080

14,689,483
1,463
14,690,947

14,689,483
1,398
14,690,882

396,485
92,819489,304
413,075,539

445,742
73,853
519,595
412,314,558

109,194
36,936
146,131¥446,487,515

123,668
22,814146,483¥446,297,778

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(Thousands of Yen)

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

11

End of 32nd Fiscal
PeriodEnd of 33rd Fiscal
Period(Dec. 31, 2017)(Jun. 30, 2018)¥1,805,561
16,408,000
7,000,000
629,439
81,817605
367,4932,709,394
224
29,002,536¥1,971,763
17,200,000
2,000,000
634,670
76,135605
244,506
2,761,325
148
24,889,153

22,500,000
135,320,000
8,031,699
13,013,950
178,865,649
207,868,185

25,500,000
136,420,000
7,938,170
12,911,767
182,769,937
207,659,091

231,653,198

231,653,198

284,356
284,356

284,356
284,356

6,681,774

6,701,131

6,966,131
238,619,329
238,619,329¥446,487,515

6,985,488
238,638,686
238,638,686¥446,297,778

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(2) Statements of Income and Retained Earnings(Thousands of Yen)

Operating revenue
Rent revenue-real estate
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management associationaccounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Subsidy income
Total extraordinary income
Income before income taxes
Income taxes-current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

12

32nd Fiscal
Period33rd Fiscal
Period(Jul. 1, 2017 –Dec. 31, 2017)(Jan. 1, 2018 –Jun. 30, 2018)¥15,141,927
15,141,927¥15,204,965
15,204,965

6,810,823
548,466
80,7296,600
25,511
100,474
7,572,605
7,569,322

7,114,506
553,336
79,9396,600
25,90889,0477,869,337
7,335,628

167

173

3,996

216,700

3,936
8,100

10,665
227,540

640,024
35,927
202,950

626,046
34,296
186,345

16,808

13,621

14,989296
910,996
6,666,426

14,121
3,030
877,460
6,685,708－－
6,666,426
605
605
6,665,821
15,953¥6,681,774

1,082
1,082
6,686,791
605
605
6,686,186
14,945¥6,701,131

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(3) Statements of Changes in Unitholders’ Equity(Thousands of Yen)

32nd Fiscal
Period(Jul. 1, 2017 –Dec. 31, 2017)
Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period
Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Total changes of items during the period
Balance at end of current period
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total unitholders' equity
Balance at the beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period

13

33rd Fiscal
Period(Jan. 1, 2018 –Jun. 30, 2018)¥231,653,198¥231,653,198–
231,653,198–
231,653,198

73,946284,356

210,409210,409284,356－
284,356

6,883,962

6,681,774(210,409)(6,657,599)
6,665,821(202,187)
6,681,774(6,666,829)
6,686,186
19,357
6,701,131

6,957,909

6,966,131–(6,657,599)
6,665,821
8,222
6,966,131(6,666,829)
6,686,186
19,357
6,985,488

238,611,107

238,619,329–(6,657,599)
6,665,821
8,222
238,619,329(6,666,829)
6,686,186
19,357
238,638,686

238,611,107

238,619,329–(6,657,599)
6,665,821
8,222¥238,619,329(6,666,829)
6,686,186
19,357¥238,638,686

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(4) Statements of Cash Distributions

I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)
III. Retained earnings carried forward
Method for calculating distribution amount32nd Fiscal Period(Jul. 1, 2017 – Dec. 31, 2017)
6,681,774,937 yen
6,666,829,000 yen(7,223 yen)
14,945,937 yen
Pursuant to the policy on cash
distributions provided in Article 30 (2)of the Articles of Incorporation of JPR,
the distribution amount shall be inexcess of an amount equivalent to 90%of the “distributable income amount”
as stipulated in Article 67-15 of the
Act on Special Measures Concerning
Taxation, but no more than the amountof earnings. Based on such policy, JPR
decided to pay out distributions ofearnings of 6,666,829,000 yen, whichis the largest integral multiple of thetotal number of investment units
issued and outstanding (923,000 units)
in an amount not in excess ofunappropriated retained earnings andto the minimizing the burden tounitholders incurred by accrual of
corporateincometax,
etc.
Furthermore, JPR shall not distributecash in excess of earnings as stipulated
in Article 30 (4) of the Articles ofIncorporation.

14

33rd Fiscal Period(Jan. 1, 2018 – Jun. 30, 2018)
6,701,131,937 yen
6,687,135,000 yen(7,245 yen)
13,996,937 yen
Pursuant to the policy on cash
distributions provided in Article 30 (2)of the Articles of Incorporation of JPR,
the distribution amount shall be inexcess of an amount equivalent to 90%of the “distributable income amount”
as stipulated in Article 67-15 of the
Act on Special Measures Concerning
Taxation, but no more than the amountof earnings. Based on such policy, JPR
decided to pay out distributions ofearnings of 6,687,135,000 yen, whichis the largest integral multiple of thetotal number of investment units
issued and outstanding (923,000 units)
in an amount not in excess ofunappropriated retained earnings andto the minimizing the burden tounitholders incurred by accrual of
corporateincometax,
etc.
Furthermore, JPR shall not distributecash in excess of earnings as stipulated
in Article 30 (4) of the Articles ofIncorporation.

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(5) Statements of Cash Flows(Thousands of Yen)

32nd Fiscal
Period(Jul. 1, 2017 –Dec. 31, 2017)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Dividends paid
Net cash provided by (used in) financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at beginning of current period
Cash and cash equivalents at end of current period

15

33rd Fiscal
Period(Jan. 1, 2018 –Jul. 30, 2018)¥6,666,426
1,921,209
16,80814,989(167)
842,974
128,957(26,088)
25,795(44,559)
204,159(23,658)(86,133)
9,640,714
167(842,341)(605)
8,797,934¥6,686,791
1,943,257
13,621
14,121(173)
812,391(271,775)
21,264
231,440
5,334(122,986)
51,931(17,795)
9,367,419
173(818,073)(606)
8,548,913(355,283)(343,219)(49,257)(19,368)
305,489(211,578)
468,011(205,206)(262,539)(957,456)(49,257)(605,044)
519,715(443,245)
367,873(1,429,952)

17,900,000(13,066,000)–(5,000,000)(6,656,178)(6,822,178)
1,770,548
31,093,816¥32,864,364

10,200,000(8,308,000)
2,971,905(5,000,000)(6,665,677)(6,801,772)
317,188
32,864,364¥33,181,553

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(6) Notes to the Going Concern Assumption
No relevant items.
(7) Notes to Significant Accounting Policies
The disclosure is omitted as there are no significant changes from the descriptions in the latest securities
report (submitted on March 26, 2018).
(8) Notes to Financial Statements
Notes to Balance Sheets
1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:
End of 32nd Fiscal Period(as of December 31, 2017)
Buildings (net)
Machinery and equipment (net)Land¥105,821¥2,054¥399,183

Total¥507,060¥507,060(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)–––¥507,060–

Secured liabilities are as follows:

Tenant leasehold and security deposits
Total

End of 32nd Fiscal Period(as of December 31, 2017)¥15,536¥15,536(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)––

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

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

End of 32nd Fiscal Period(as of December 31, 2017)¥24,000,000–¥24,000,000(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)¥24,000,000–¥24,000,000

3. Minimum Total Unitholders’ Equity Designated in Article 67-4 in the Act on Investment Trusts andInvestment Corporations
End of 32nd Fiscal Period(as of December 31, 2017)(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)¥50,000¥50,000

16

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

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

32nd Fiscal Period(July 1, 2017 –December 31, 2017)

33rd Fiscal Period(January 1, 2018 –June 30, 2018)

A. Rent Revenue-Real Estate
Rent Revenue
Rents¥10,613,685¥10,725,048

Land rents
Common charges
Parking fees
Advertising fees
Antenna usage fees
Other

1,580,499
1,661,544
264,972
70,57822,47740,767

1,630,000
1,618,829
269,424
74,76323,022
39,621

Subtotal
Other rental revenues
Incidental rent income

14,254,525

14,380,710

788,587

673,387

Time-based parking fees

7,843

7,792

Cancellation charges

35,495

14,154

Income equivalent to expenses forrestoration to original condition

29,850101,309

Other miscellaneous income

25,624

27,611

Subtotal

887,402824,255

15,141,927

15,204,965¥598,343
878,8292,044,170
25,895329,320
268,081584,603
1,921,209
160,368¥586,654
748,568
2,217,829
24,721
473,717289,577
567,860
1,943,257
262,319

6,810,823

7,114,506

8,331,104

8,090,459

Total rent revenue-real estate
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 for Rent Business (A-B)

17

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Notes to Statements of Changes in Unitholders’ Equity
32nd Fiscal Period(July 1, 2017 – December 31, 2017)
Total number of authorizedunits and number of units
outstanding
Total number of authorizedunits
Number of units outstanding

33rd Fiscal Period(January 1, 2018 – June 30, 2018)

5,000,000 units

5,000,000 units

923,000 units

923,000 units

Financial Instruments
1. Matters Concerning Status of Financial Instruments(1) Policy for Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts
the asset management policy of paying heed to efficiently combining the procurement of long-term funds
that are stable and the procurement of short-term funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging forinterest rate fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivativetransactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk
management by complying with the JPR Asset Management Guidelines and other rules and regulations. The
following outlines the description of individual financial instruments and the associated risks, and the risk
management.
Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit
risks, but the risks are managed through such measures as setting a minimum credit rating for the financial
institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of
repayment/redemption, but the liquidity risks are managed through such measures as procuring funds fromthe capital market by increasing capital, executing a commitment line agreement with the main lending
financial institutions, and also having statements of cash receipts and disbursements prepared by the financial
division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
The fair value of financial instruments, aside from values based on market price includes values based onreasonable calculations when there is no market price. Certain assumptions are used in calculating thosevalues and there may be cases where the values will vary when different assumptions are used.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of December 31, 2017 of financial instruments, and thedifference between these amounts. Please note the following table does not include those for which discerningof fair value is recognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)

1) Cash and deposits
2) Cash and deposits in trust3) Current portion of long-term loans payable

Carrying Value(Note 1)
¥20,773,083
12,091,281(16,408,000)

Fair
Value (Note 1)¥20,773,083
12,091,281(16,481,773)

Difference¥－－
73,773

4) Current portion of investment corporation bonds(7,000,000)(7,030,800)

30,8005) Investment corporation bonds(22,500,000)(24,046,017)

1,546,017(¥135,320,000)(¥136,959,541)¥1,639,541

6) Long-term loans payable18

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

The following are the carrying values and fair values as of June 30, 2018 of financial instruments, and thedifference between these amounts. Please note that the following table does not include those for which
discerning of fair value is recognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)
Carrying Value(Note 1)
¥21,115,284
12,066,268(17,200,000)

1) Cash and deposits
2) Cash and deposits in trust3) Current portion of long-term loans payable

Fair
Value (Note 1)¥21,115,284
12,066,268(17,334,944)

Difference¥－－
134,944

4) Current portion of investment corporation bonds(2,000,000)(2,008,000)

8,000

5) Investment corporation bonds(25,500,000)(27,003,898)

1,503,898(¥136,420,000)(¥137,943,159)¥1,523,159

6) Long-term loans payable(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the fair value is approximately the same as the carrying value
and is thus stated at that carrying value.
(3) Current portion of long-term loans payable and (6) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount ofprincipal and interests are discounted by the rate assumed as being applicable in the event of a new drawdown whose term iscorresponding to the remaining loan term.
(4) Current portion of investment corporation bonds, and (5) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are calculated based on market price and those with no market
price are calculated in accordance with (3) and (6) above.
(Note 3) Financial instruments for which discerning of fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental
properties are not subject to disclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult
since there is no market price and also since it is difficult to calculate the actual deposit period from when lessees move in to when they
move out. The following is the carrying value of tenant leasehold and security deposits and tenant leasehold and security deposits in trust.

Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

End of 32nd Fiscal Period(as of December 31, 2017)¥8,031,699¥13,013,950(Thousands of yen)
End of 33rd Fiscal Period(as of June 30, 2018)¥7,938,170¥12,911,767(Note 4) Scheduled redemption of monetary claims to be due subsequent to December 31, 2017 and June 30, 2018

End of 32nd Fiscal Period (as of December 31, 2017)
Due after
Two Years
throughThree Years¥–¥–

Due afterThree Years
through
Four Years¥–¥–(Thousands of yen)
Due after
Due after
Four Years
Five Years
throughFive Years
¥–
¥–
¥–
¥–

Due after
Due after
Due in One Year One Year
Two Years
or Less
throughthrough
Two Years Three Years

Due afterThree Years
through
Four Years

Due after
Four Years
throughFive Years

Due after
Five Years

¥–
¥–

¥–
¥–

¥–
¥–

Due in One
Year or Less
Cash and deposits
Cash and deposits in trust¥20,773,083¥12,091,281

Due after
One Yearthrough
Two Years¥–¥–

End of 33rd Fiscal Period (as of June 30, 2018)(Thousands of yen)

Cash and deposits
Cash and deposits in trust¥21,115,284¥12,066,268

¥–
¥–

¥–
¥–

19

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(Note 5) Amount of repayment or redemption of investment corporation bonds and long-term loans payable to be due subsequent toDecember 31, 2017 and June 30, 2018

End of 32nd Fiscal Period (as of December 31, 2017)

Investment
corporation bonds
Long-term loans
payable(Thousands of yen)
Due after
Four Years
Due after
throughFive Years
Five Years

Due in One
Year or Less

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years¥7,000,000¥4,000,000

¥–

¥–

¥–

¥18,500,000¥16,408,000¥17,100,000¥21,000,000¥19,820,000¥14,500,000¥62,900,000

Due in One
Year or Less

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years(Thousands of yen)
Due after
Four Years
Due after
throughFive Years
Five Years¥2,000,000¥4,000,000¥–¥–¥2,000,000¥19,500,000¥17,200,000¥18,000,000¥20,820,000¥20,500,000¥15,000,000¥62,100,000

End of 33rd Fiscal Period (as of June 30, 2018)

Investment
corporation bonds
Long-term loans
payableInvestment and Rental Properties
JPR owns office properties (urban commercial facilities), retail properties for leasing in Tokyo and other regions.
The following is the carrying value on the balance sheets, amount of increase (decrease) during the period andfair value of these investment and rental properties.
(Thousands of yen)
32nd Fiscal Period
33rd Fiscal Period(July 1, 2017 – December 31, 2017) (January 1, 2018 –June 30, 2018)
Carrying Value on the Balance Sheets
Balance at Beginning of Period¥413,882,673¥412,586,234

Amount of Increase(Decrease) during the Period(¥1,296,439)(¥791,271)

Balance at End of Period¥412,586,234¥411,794,962¥476,050,000¥484,291,000

Fair Value at End of Period(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of change during the 32nd fiscal period, the amount of decrease is primarily attributable to depreciation (1,921,209 thousandyen). Of the amount of change during the 33rd fiscal period, the amount of decrease is primarily attributable to depreciation (1,943,257
thousand yen).

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

The income (loss) in the 32nd and 33rd fiscal periods for investment and rental properties are as presented in the“Notes to Statements of Income and Retained Earnings.”

20

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Per Unit Information(Yen)
32nd Fiscal Period(July 1, 2017 – December 31, 2017)

33rd Fiscal Period(January 1, 2018 –June 30, 2018)¥258,525¥7,221¥258,546¥7,24332nd Fiscal Period(July 1, 2017 – December 31, 2017)

33rd Fiscal Period(January 1, 2018 –June 30, 2018)¥6,665,821–¥6,665,821
923,000 units¥6,686,186–¥6,686,186
923,000 units

Total net assets per unit
Net income per unit

(Note 1) Net income per unit is calculated 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 2) Net income per unit was calculated based on the following data.

(Thousands of yen)

Net income
Amounts not attributable to ordinary unitholders
Net income attributable to ordinary investment units

Average number of units

Subsequent Events
There are no material subsequent events for this fiscal period.
Omission of Disclosure
JPR omits the disclosure of notes to statements of cash flows, lease transactions, securities, derivativetransactions, transactions with affiliated parties, tax effect accounting, retirement benefits, asset retirement
obligations and segment information, etc. as it does not find substantial need for disclosure in the Fiscal Period
Results report.

21

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(9) Changes in Investment Units Issued and Outstanding
There was no change in the number of units outstanding and unitholders’ capital in the 33rd fiscal period. Thechanges in the number of units outstanding and unitholders’ capital in the last five years are summarized as follows.
Date

Event

Number of Units
Outstanding
Variation
BalanceUnitholders' Capital(million yen)
Variation
Balance

Remarks

June 16, 2015

Additional public offering

45,700870,700

17,472

209,516(Note 1)

June 24, 2015

Third-party allotment

2,300

873,000

879

210,395(Note 2)January 24, 2017

Additional public offering

47,600920,600

20,237

230,632(Note 3)February 14, 2017

Third-party allotment

2,400

923,000

1,020

231,653(Note 4)(Note 1) New investment units were issued through a public offering at 394,875 yen per unit (underwriting price of 382,320 yen per unit)
to repay debt, etc.
(Note 2) New investment units were issued through a third-party allotment at 382,320 yen per unit to repay debt, etc.
(Note 3) New investment units were issued through a public offering at 439,040 yen per unit (underwriting price of 425,152 yen per unit)
to fund acquisition of new specified assets and partly repay debt.
(Note 4) New investment units were issued through a third-party allotment at 425,152 yen per unit to fund acquisition of new specified
assets and partly repay debt.

4. Change of Directors
Change of directors is disclosed, as needed, when details of disclosure are finalized.

22

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

5. Reference Information(1) JPR’s Asset Structure
32nd Fiscal Period(as of December 31, 2017)
Category of
Investment Area Assets Owned by JPR Percentage of Total(thousands of yen)
Assets (%)

Asset Type

33rd Fiscal Period(as of June 30, 2018)
Assets Owned by JPR Percentage of Total(thousands of yen)
Assets (%)

Central Tokyo

86,628,083

19.4

86,485,677

19.4

Greater Tokyo

56,833,457

12.7

56,571,627

12.7

Other Cities

20,547,431

4.6

20,394,211

4.6

Central Tokyo

156,567,864

35.1

156,212,234

35.0Greater Tokyo

50,510,178

11.3

50,374,846

11.3

Other Cities

41,499,218

9.3

41,756,365

9.4

Deposits and Other
Assets–33,901,281
(－)

7.6
(－)

34,502,815
(－)

7.7
(－)

Total Assets–

446,487,515(412,586,234)

100.0(92.4)

446,297,778(411,794,962)

100.0(92.3)

Real Estate

Real Estate in Trust(Note 1) Total assets owned are based on the amounts appropriated on the balance sheets 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) As for the category of investment area, please refer to (2) Investment Assets 1) Overview of Investment Assets below.

(2) Investment Assets
1) Overview of Investment Assets
The overview of the real estate and real estate in trust regarding trust beneficiary interests in real estate inwhich JPR invests are as follows. All of the real estate and trust beneficiary interests in real estate are shownin the table below.
Descriptions in the table below are based on the following policies.
・The table below indicates the properties JPR owned as of the end of the 33rd fiscal period.
・JPR defines the categories of investment areas as designated below.
Category

Investment Area

Central Tokyo

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・“Location,” “Site Area,” “Total Floor Space,” “Structure/Floors” and “Completed” are based on data
recorded in the real estate registry.
・“Site Area” and “Total Floor Space” indicate the areas of the entire building sites and the entire
buildings, respectively, including the portions owned by other sectional owners, etc. except for thefollowing properties:
MS Shibaura Bldg.: The site area includes land of the Trinity Shibaura, which was developed
together with the property.
Shinjuku Square Tower: The site area and the total floor space are for the entire redevelopment
area.
Rise Arena Bldg.: The site area is for the entire redevelopment area including the residentialbuilding, and the total floor space includes the space of the residential building.
Olinas Tower: The site area and the total floor space are for the entire property including the retailand residential buildings.
Cupo-la Main Bldg.: The site area is for the entire redevelopment area.
・ The abbreviations in the “Structure/Floors” represent the following phrases, respectively.
S: Steel-framed,
RC: Reinforced concrete,
SRC: Steel-framed reinforced concrete

23

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Area

Type

Location

Site Area(m2)

Total Floor
Space (m2)Kanematsu Bldg.

Kyobashi 2-chome, Chuo-ku, Tokyo

1,751.13

14,995.09

Kanematsu Bldg.
Annex

Kyobashi 2-chome, Chuo-ku, Tokyo

679.06

4,351.46

550.06

4,117.70

657.805,152.98

636.904,790.68

Property Name

Ningyocho 1-chome, Chuo-ku,
JPR Ningyo-cho Bldg.
Tokyo
Kojimachi 4-chome, Chiyoda-ku,
Shin-Kojimachi Bldg.
Tokyo
JPR Crest Takebashi
Kanda-Nishikicho 3-chome,Bldg.
Chiyoda-ku, TokyoMS Shibaura Bldg.

Shibaura 4-chome Minato-ku, Tokyo

8,992.18

31,020.21

Gotanda First Bldg.

Nishi-Gotanda 2-chome, Shinagawaku, Tokyo

1,551.19

10,553.34

JPR Ichigaya Bldg.

Kudan-Minami 4-chome, Chiyodaku, Tokyo

1,058.04

5,888.82

SRC
B1/9F

Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
Nishi-Shinjuku 6-chome, Shinjukuku, Tokyo
Shinjuku 2-chome, Shinjuku-ku,
Tokyo

4,006.00

28,575.80

8,409.52

78,796.00

3,522.46

25,733.10

Across Shinkawa Bldg.
Shinkawa 1-chome, Chuo-ku, Tokyo
Annex
Nishi-Shinjuku 1-chome, ShinjukuShinjuku Center Bldg.
ku, Tokyo
Minami-Azabu 2-chome, Minato-ku,
Minami Azabu Bldg.
Tokyo

858.485,535.90

14,917.11

176,607.89

778.094,570.63

Shinagawa Canal Bldg. Konan 2-chome, Minato-ku, Tokyo

828.82

5,216.21

Rokubancho Bldg.

716.95

4,205.09

S, SRC
B2/17F
S, RC, SRC
B4/30F
SRC
B2/14F
S, SRC
B2/10F
SRC, RC, S
B5/54F
S
9F
S
B1/8F
SRC B3/7F

1,205.07

6,466.94

SRC B1/9F

Oval Court Osaki
Mark West
Shinjuku Square
Tower

OfficeBYGS Shinjuku Bldg.

Central TokyoJPR Harajuku Bldg.
Tokyo Tatemono
Kyobashi Bldg.
JPR Nihonbashihoridome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.

Rokubancho, Chiyoda-ku, Tokyo
Jingumae 6-chome, Shibuya-ku,
Tokyo
Kyobashi 3-chome, Chuo-ku, Tokyo

547.104,419.79

Nihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
Sendagaya 4-chome, Shibuya-ku,
Tokyo

937.597,190.82

2,217.49

7,683.19

Ginza 4-chome, Chuo-ku, Tokyo

1,119.27

8,851.00

SRC, S
B1/10F
SRC
B1/9F
S
8F
SRC
B2/9F

11,034.78－–

5,289.01

24,560.36

1,915.50

11,419.93

Otemachi Tower (Land
Otemachi 1-chome, Chiyoda-ku,
with Leasehold
Tokyo
Interest)
Science PlazaYonbancho, Chiyoda-ku, Tokyo
Yonbancho Plaza
Shibadaimon Center
Shibadaimon 1-chome, Minato-ku,
Bldg.
Tokyo
Tokyo Square Garden

Kyobashi 3-chome, Chuo-ku, Tokyo

8,124.72

112,645.83

S, RC, SRC
B2/12F
S, SRC
B1/10F
S, SRC
B4/24FJPR Shibuya Tower
Records Bldg.

Jinnan 1-chome, Shibuya-ku, Tokyo

1,010.47

8,449.56

SRC, S
B3/8F

JPR Jingumae 432

RetailStructure/
Completed
FloorsS, RC, SRC
Feb. 1993
B2/13F
SRC
Feb. 1993
B1/8F
SRC, RC
Dec. 1989
B1/8F
SRC
Oct. 1984
B1/9F
SRC
Sep. 1999
B1/9F
SRC, RC, S
Feb. 1988
B2/13F
SRC, RC
Jul. 1989
B2/11F

Shinjuku Sanchome
East Bldg.
Yurakucho Ekimae
Bldg.
(Yurakucho Itocia)
JPR Ginza Namikidori Bldg. (Note 1)
FUNDES Suidobashi

Mar. 1989
Jun. 2001
Oct. 1994
Apr. 1985
Jun. 1994
Oct. 1979
Jun. 1992
Jul. 2008
Oct. 1991
Mar. 1989
Jan. 1981
Jun. 2002
May 2009
Oct. 1982–
Feb. 1995
Jul. 1993
Feb. 2013
Feb. 1992

Jingumae 4-chome, Shibuya-ku,
TokyoShinjuku 3-chome, Shinjuku-ku,
Tokyo

198.101,066.81

2,578.69

24,617.65

S, SRC
B1/7F
S, SRC, RC
B3/14F

Yurakucho 2-chome, Chiyoda-ku,
Tokyo

6,808.12

71,957.65

S, SRC
B4/20F

Oct. 2007

Ginza 5-chome, Chuo-ku, Tokyo

230.11

1,821.67

S
11F

Jun. 2008

Kanda Misakicho 2-chome, Chiyodaku, Tokyo

281.591,477.91

S
9F

Jul. 201524

Feb. 2006
Jan. 2007

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Type

Greater Tokyo

OfficeArea

Location

Site Area(m2)

Total Floor
Space (m2)

Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka

1,214.63

9,828.73

959.875,780.71

1,895.67

10,783.52

1,128.45

6,715.07

S 9F

1,164.39

8,690.95

668.11

5,696.01

JPR Nagoya Fushimi
Bldg.
Yakuin Business
GardenMatsuyama 1-chome, Naha,
Okinawa
Tsutsujigaoka 3-chome, Miyaginoku, Sendai, Miyagi
Misonocho 3-chome, Wakayama,
Wakayama
Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
Sakae 1-chome, Naka-ku, Nagoya,
Aichi
Yakuin 1-chome, Chuo-ku,
Fukuoka, Fukuoka

Structure/
FloorsS, SRC
B3/19F
S, SRC
B1/13F
SRC
B1/11F
S, SRC
B2/12F
S, SRC
B2/15F
S, SRC
B1/8F
S, SRC
B1/12F
RC, SRC, S
B3/42F
S, SRC, RC
B3/27F
SRC, RC, S
B2/45F
SRC
B1/9F
S
9F
SRC
B2/17F
S, RC, SRC
B2/10F
SRC, RC, S
B1/6F
S
B1/4F
S, SRC, RC
B2/11F
S, SRC
B1/10F
SRC
B3/9F(Office)S, RC
B1/12F(Parking)
S 1F
SRC, S
12F
SRC
B1/12F

Arca East

Kinshi 3-chome, Sumida-ku, Tokyo

3,755.01

34,281.86

JPR Chiba Bldg.

Shinmachi, Chuo-ku, Chiba, Chiba

1,382.35

9,072.57

JPR Yokohama
Nihon Odori Bldg.
Shinyokohama 2nd
Center Bldg.
Kawaguchi Center
Bldg.

1,100.59

9,146.52

841.71

7,781.93

4,524.61

28,420.85

1,242.97

8,490.44

2,047.22

14,706.36

9,377.28

91,280.94

Yume-ooka OfficeTower

Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
Shinyokohama 3-chome, Kohokuku, Yokohama, Kanagawa
Honcho 4-chome, Kawaguchi,
SaitamaMatsugaya 1-chome, Taito-ku,
Tokyo
Akebonocho 2-chome, Tachikawa,
Tokyo
Higashi-Ikebukuro 4-chome,
Toshima-ku, Tokyo
Kamiooka Nishi 1-chome, Konanku, Yokohama, Kanagawa

12,011.00

185,974.87

Olinas Tower

Taihei 4-chome, Sumida-ku, Tokyo

27,335.29

257,842.41

Tokyo Tatemono
Yokohama Bldg.

Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
Tanashicho 2-chome, Nishitokyo,
Tokyo
Kawaguchi 1-chome, Kawaguchi,
Saitama
Kosugimachi 3-chome, Nakaharaku, Kawasaki, Kanagawa
Bessho 7-chome, Minami-ku,
Saitama, Saitama
Ekimae-Honcho, Kawasaki-ku,
Kawasaki, Kanagawa
Yoneyama 1-chome, Chuo-ku,
Niigata, Niigata
Honmachi 3-chome, Chuo-ku,
Osaka, Osaka

1,110.28

8,772.51

2,268.09

9,203.98

12,326.30

80,675.27

15,008.28

48,321.96

4,757.09

18,394.32

8,317.99

28,930.36

4,475.45

36,902.01

2,706.99

19,950.42

1,432.64

14,619.52

1,610.38

10,201.44

4,486.44

22,286.35

S, SRC
13F
SRC
B2/9F
SRC
B1/9F
SRC
14F

JPR Shinsaibashi
Bldg. (Note 2)

Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka

609.315,303.98

S
B2/10F

Chayamachi, Kita-ku, Osaka, Osaka

3,518.68

17,897.56

Higashi-Kawasakicho 1-chome,
Chuo-ku, Kobe, Hyogo

3,994.47

33,877.71

592.45

3,219.36

SRC
B1/8F
SRC, S
B2/11F
S, SRC
9F

Property NameJPR Ueno East Bldg.
Tachikawa BusinessCenter Bldg.
Rise Arena Bldg.

Omiya Prime East
Tanashi ASTA

RetailCupo-la Main Bldg.
JPR Musashikosugi
Bldg.
Musashiurawa
Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center
Bldg.
Tokyo Tatemono
Honmachi Bldg.
JPR Hakata Bldg.

OfficeSompo Japan Sendai
Bldg.
Sompo Japan
Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.

RetailOther Cities

JPR Naha Bldg.

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

Chayamachi, Kita-ku, Osaka, Osaka(Note 1) The property was renamed from GINZA GATES to JPR Ginza Namiki-dori Bldg. as of August 1, 2018.
(Note 2) The property was renamed from Benetton Shinsaibashi Bldg. to JPR Shinsaibashi Bldg. as of August 1, 2018.

25

Completed
Mar. 1997
Jan. 1991
Oct. 1989
Aug. 1991
Feb. 1994
Oct. 1992
Dec. 1994
Jan. 2007
Mar. 1997
Feb. 2006
May 1981
Feb. 2009
Feb. 1995
Jan. 2006
Mar. 1983
Oct. 2005
Aug. 2003
Mar. 1996
Feb. 1970(Office)Jun. 1985(Parking)
Nov. 2003
Expanded
Oct. 1991
Dec. 1997
Jul. 1996
Jul. 2000
Oct. 1993
Mar. 1991
Jan. 2009
Feb. 2003
Jan. 2005
Expanded
Apr. 1990
Jun. 1994
Jun. 1994

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

2) Price and Investment Ratio
・“Acquisition Price” is the deal price (rounded down to the nearest million yen) described in the realestate transaction contracts or trust beneficiary interest transfer contracts, and does not include
expenses related to acquisitions of the relevant properties and consumption taxes.
Furthermore, the total amount is also rounded down to the nearest million yen after summing up
respective acquisition prices including fractions.
・For “Appraisal Value at End of Period,” JPR adopts the assessed value in the real estate appraisal
reports or the survey value in the real estate price survey reports, prepared by the real estate appraisers
indicated below, based on the asset evaluation method designated by JPR and the rules of The
Investment Trusts Association, Japan. The adopted appraisal value has been rounded down to thenearest million yen.
Japan Real Estate InstituteTanizawa Sogo Appraisal Co., Ltd.
CBRE KK
Daiwa Real Estate Appraisal Co.,
Ltd.

Japan Valuers Co., Ltd.

JPR Ningyo-cho Bldg., Shin-Kojimachi Bldg., MS Shibaura Bldg., Gotanda
First Bldg., Shinjuku Center Bldg., Minami Azabu Bldg., Shinagawa Canal
Bldg., Rokubancho Bldg., Tokyo Tatemono Kyobashi Bldg., Science PlazaYonbancho Plaza, Shibadaimon Center Bldg., JPR Shibuya Tower Records
Bldg., Shinjuku Sanchome East Bldg., Yurakucho Ekimae Bldg. (Yurakucho
Itocia), FUNDES Suidobashi, Arca East, Shinyokohama 2nd Center Bldg.,
Kawaguchi Center Bldg., JPR Ueno East Bldg., Tachikawa Business Center
Bldg., Yume-ooka Office Tower, Olinas Tower, Tokyo Tatemono Yokohama
Bldg., Omiya Prime East, Cupo-la Main Bldg., Tokyo Tatemono Honmachi
Bldg., Sompo Japan Sendai Bldg., Sompo Japan Wakayama Bldg., Tenjin
121 Bldg., JPR Dojima Bldg., Yakuin Business Garden
JPR Jingumae 432, Kawasaki Dice Bldg., Niigata Ekinan Center Bldg., JPR
Hakata Bldg., JPR Naha Bldg.
Rise Arena Bldg., JPR Nagoya Fushimi Bldg., JPR Shinsaibashi Bldg.,
Housing Design Center Kobe, JPR Chayamachi Bldg.
Kanematsu Bldg., Kanematsu Bldg. Annex, JPR Crest Takebashi Bldg., JPR
Ichigaya Bldg., Oval Court Ohsaki Mark West, BYGS Shinjuku Bldg.,
Across Shinkawa Bldg. Annex, Otemachi Tower (Land with Leasehold
Interest) , Tokyo Square Garden, JPR Chiba Bldg., JPR Yokohama Nihon
Odori Bldg., Tanashi ASTA
Shinjuku Square Tower, JPR Harajuku Bldg., JPR Nihonbashi-horidome
Bldg., JPR Sendagaya Bldg., Ginza Sanwa Bldg., JPR Ginza Namiki-dori
Bldg., JPR Musashikosugi Bldg., Musashiurawa Shopping Square, JPR
Umeda Loft Bldg.

・The “Investment Ratio” in terms of the “Acquisition Price” and the “Appraisal Value at End of Period”

represents the ratio of the Acquisition Price and the Appraisal Value at End of Period of respective
properties, including fractions not indicated herein, to the total amounts of the Acquisition Price or the
Appraisal Value at End of Period of the properties owned by JPR at end of the 33rd fiscal period,
indicated in a percentage rounded to the first decimal place.

26

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Acquisition Price
Area

Type

Property Name

Dec. 27, 2001

16,276

3.7

13,900

2.9

Kanematsu Bldg. Annex

Dec. 27, 2001

2,874

0.7

2,520

0.5

JPR Ningyo-cho Bldg.

Nov. 16, 2001

2,100

0.5

2,490

0.5

Nov. 16, 2001

1,670

Nov. 21, 2002

550

0.6

3,580

0.7

Nov. 12, 2004

200

JPR Crest Takebashi Bldg.

Jun. 21, 2002

4,000

0.9

3,360

0.7

MS Shibaura Bldg.

Mar. 28, 2003

11,2002.6

12,3002.5

Gotanda First Bldg.

Jul. 23, 2003

2,920

0.7

2,810

0.6

JPR Ichigaya Bldg.

May 28, 2004

5,100

1.2

5,230

1.1

Oval Court Ohsaki Mark West

Jun. 1, 2004

3,500

0.8

4,940

1.0

3.4

14,800

3.1

3.5

19,000

3.9

OfficeShinjuku Square Tower

Jul. 2, 2004

10,000Sep. 26, 2008
Mar. 25, 2015
Oct. 21, 2015

180
4,000
786

Nov. 9, 2004

2,900

Apr. 12, 2005

8,921

Jul. 13, 2010

3,300

Across Shinkawa Bldg. Annex

Nov. 26, 2004

710

0.2

891

0.2

Shinjuku Center Bldg.

Mar. 27, 2008

21,0004.8

15,8003.3

Minami Azabu Bldg.

Jul. 14, 2008

3,760

0.9

2,930

0.6

Shinagawa Canal Bldg.

Dec. 19, 2008

1,870

0.4

1,870

0.4

Rokubancho Bldg.

Dec. 2, 2009

2,800

0.6

3,440

0.7

JPR Harajuku Bldg.

Dec. 25, 2009

8,400

1.9

9,670

2.0

Tokyo Tatemono Kyobashi Bldg.

Feb. 12, 2010

5,250

1.2

5,720

1.2

JPR Nihonbashi-horidome Bldg.

Mar. 31, 2010

5,100

1.2

6,830

1.4

JPR Sendagaya Bldg.

May 31, 2010

15,050

3.5

12,0002.5

Ginza Sanwa Bldg.

Aug. 29, 2011

3,400

0.8

4,080

0.8

Otemachi Tower (Land with
Leasehold Interest)

Mar. 13, 2012

36,0008.3

48,300

10.0

Science Plaza-Yonbancho Plaza

Dec. 6, 2013

2,660

0.6

3,380

0.7

Dec. 6, 2013

3,420

Jul. 30, 2014

800

1.0

6,660

1.4

Feb. 1, 2017

9,200

Apr. 4, 2017

9,200

4.2

20,6004.3

Jun. 30, 2003

12,0002.8

14,5003.0Mar. 24, 2006

4,275

1.0

4,110

0.8

0.6

2,910

0.6

BYGS Shinjuku Bldg.

Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Shibuya Tower Records
Bldg.
JPR Jingumae 432

Retail(million yen)

Investment
Ratio
(%)

Price

Kanematsu Bldg.

Shin-Kojimachi Bldg.

Central Tokyo

Acquisition Date

Appraisal Value at
End of Period
Appraisal
Investment
Value
Ratio
(million yen)(%)

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

JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi
Subtotal of Central Tokyo

Mar. 14, 2007

540

Apr. 24, 2008

2,200

Aug. 27, 2008

3,400

0.8

3,240

0.7

Dec. 15, 2016
Dec. 15, 2016

10,1003,250
244,862

2.3
0.7
56.3

11,3003,640
266,801

2.3
0.8
55.1

27

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Acquisition Price
Area

Type

Property Name

OfficeRetailOffice(million yen)

(%)

5,880

1.4

6,420

1.3

JPR Chiba Bldg.
JPR Yokohama Nihon Odori
Bldg.

Dec. 13, 2001

2,350

0.5

1,780

0.4

Nov. 16, 2001

2,927

0.7

2,340

0.5

Sep. 25, 2002

920

Mar. 28, 2013

570

0.3

1,810

0.4

Kawaguchi Center Bldg.

Feb. 13, 2004

8,100

1.9

9,590

2.0

JPR Ueno East Bldg.

Mar. 1, 2004

3,250

0.7

4,850

1.0

Sep. 30, 2005

888

Feb. 28, 2007

2,300

0.7

3,940

0.8

Rise Arena Bldg.

Mar. 22, 2007

5,831

1.3

8,630

1.8

Yume-ooka Office Tower

Jul. 10, 2007

6,510

1.5

6,510

1.3

Olinas Tower
Tokyo Tatemono Yokohama
Bldg.
Omiya Prime East

Jun. 29, 2009

31,3007.2

37,5007.7

Dec. 27, 2010

7,000

1.6

8,500

1.8

Mar. 22, 2013

6,090

1.4

8,610

1.8

Tanashi ASTA

Nov. 16, 2001

10,2002.3

12,500

2.6

Cupo-la Main Bldg.

Mar. 31, 2006

2,100

0.5

2,800

0.6

JPR Musashikosugi Bldg.

Sep. 28, 2006

7,254

1.7

5,690

1.2

Musashiurawa Shopping Square

Mar. 19, 2007

4,335

1.0

4,350

0.9

Kawasaki Dice Bldg.

Apr. 12, 2007

15,0803.5

16,200

3.3

Tachikawa Business Center Bldg.

RetailInvestment
Ratio

Nov. 16, 2001

122,88528.2

142,020

29.3

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi
Bldg.
JPR Hakata Bldg.

Nov. 16, 2001

2,140

0.5

2,230

0.5

Nov. 16, 2001

4,150

1.0

3,490

0.7

Nov. 16, 2001

2,900

0.7

3,470

0.7

JPR Naha Bldg.

Nov. 16, 2001

1,560

0.4

1,860

0.4

Sompo Japan Sendai Bldg.

Jun. 26, 2002

3,150

0.7

4,040

0.8

Sompo Japan Wakayama Bldg.

Jun. 26, 2002

1,670

0.4

1,620

0.3

Tenjin 121 Bldg.

Jun. 21, 2002

2,810

0.6

3,030

0.6

JPR Dojima Bldg.

Jan. 23, 2004

2,140

0.5

3,100

0.6

JPR Nagoya Fushimi Bldg.

Mar. 22, 2005

4,137

1.0

2,960

0.6

Yakuin Business Garden

Aug. 8, 2012

10,996

2.5

16,6003.4

JPR Shinsaibashi Bldg.

May 30, 2005

5,430

1.2

4,490

0.9

8,000
5,000
7,220

3.0

14,100

2.9

Housing Design Center Kobe

May 15, 2003
Jul. 16, 2003
Sep. 28, 2005

1.7

7,280

1.5

JPR Chayamachi Bldg.

Aug. 30, 2006

6,000

1.4

7,200

1.5

Subtotal of Greater Tokyo

Other Cities

Price

Arca East

Shinyokohama 2nd Center Bldg.

Greater Tokyo

Acquisition Date

Appraisal Value at
End of Period
Appraisal
Investment
Value
Ratio
(million(%)yen)

JPR Umeda Loft Bldg.

Subtotal of Other Cities
Total

28

67,30315.5

75,47015.6

435,050100.0

484,291100.0

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period(3) Major Investment Assets
The following is the investment property with rental revenues exceeding 10% of total rental revenues of theentire portfolio of JPR for the 33rd fiscal period.
<Property Name: Otemachi Tower (Land with Leasehold Interest)>
Total Number of Tenants
Rental Revenues (Note 1)
Percentage to Total Rental Revenues (Note 2)
Total Leased Floor Space (Note 3)
Total Leasable Floor Space (Note 3)
Changes in Occupancy Rate in Last 5 years (Note 2)2
1,630,000 thousand yen
10.7%
11,034.78m2
11,034.78m2
June 30, 2018

100.0%

December 31, 2017100.0%

June 30, 2017100.0%

December 31, 2016

100.0%

June 30, 2016

100.0%

December 31, 2015

100.0%

June 30, 2015

100.0%

December 31, 2014

100.0%

June 30, 2014

100.0%

December 31, 2013100.0%(Note 1) Rental revenues represent the property’s operating revenues for the 33rd fiscal period, rounded down to
the nearest thousand yen.
(Note 2) The figure has been rounded to the first decimal place.
(Note 3) The total leased floor space and total leasable floor space are those as of the end of the 33rd fiscal period(June 30, 2018).

(4) Information Concerning Tenants
1) Overview of Lease Status by JPR as a Whole
No. of Properties
December 31, 2013

Total No. of
Tenants

62

Total Leasable Floor Space

Occupancy Rate

610

467,207.05m2

96.5%
97.8%

June 30, 2014

62

628

467,175.54m2

December 31, 2014

62

632

468,232.24m2

97.0%

June 30, 2015

62

647

475,007.79m2

96.7%

650

476,352.67m2

97.4%
98.1%

December 31, 2015

62

June 30, 2016

62

661

476,345.81m2

December 31, 2016

63

679

477,249.40m2

98.6%

June 30, 2017

62

730

477,972.54m2

98.0%
98.5%

December 31, 2017

62

745

478,169.25m2

January 31, 2018

62

739

478,169.25m2

98.3%

February 28, 2018

62

739

478,150.28m2

98.1%

March 31, 2018

62

739

478,143.01m2

97.9%

739

478,114.82m2

97.6%

745

478,117.02m2

98.5%

747

478,117.02m2

98.8%

April 30, 2018
May 31, 2018
June 30, 2018

62
62
62

(Note) Occupancy rates have been rounded to the first decimal place.

29

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

Furthermore, the following table shows the total number of tenants, total leased floor space and total leasable
floor space as of the end of the 33rd fiscal period, as well as the total rental income for the 33rd fiscal period.
Total Number of Tenants

747

Total Leased Floor Space

472,329.62m2

Total Leasable Floor Space

478,117.02m2

Total Rental Income

15,204,965 thousand yen2) Overview of Lease Status for Respective Properties
33rd Fiscal Period (January 1, 2018 – June 30, 2018)
Type

RetailCentral Tokyo

OfficeArea

Property Name

Information on Period End Floor Space, Etc.
Total Leasable
Total Leased
No. ofOccupancy
Floor Space
Floor Space
Tenants
Rate (%)(m2)(m2)(Note 1)

Rental Revenues(thousands of
yen)

Ratio

Kanematsu Bldg.

7,994.02

7,994.02

10

100.0

383,896

2.5

Kanematsu Bldg. Annex

2,291.13

2,291.131

100.0(Note 2)

(Note 2)

JPR Ningyo-cho Bldg.

2,804.56

2,804.56

4

100.0

93,2400.6

Shin-Kojimachi Bldg.

3,319.37

3,319.37

17

100.0

110,589

0.7

JPR Crest Takebashi Bldg.

3,265.34

3,265.34

6

100.0

108,088

0.7

MS Shibaura Bldg.

14,468.38

14,468.38

10

100.0

440,719

2.9

Gotanda First Bldg.

4,241.22

4,241.223

100.0

131,046

0.9

JPR Ichigaya Bldg.
Oval Court Ohsaki MarkWest
Shinjuku Square Tower

4,234.41

4,234.41

10

100.0

145,071

1.0

4,088.44

4,088.442

100.0

189,747

1.2

19,266.38

19,266.38

25

100.0

383,007

2.5

BYGS Shinjuku Bldg.
Across Shinkawa Bldg.
Annex
Shinjuku Center Bldg.

15,227.80

15,145.81

24

99.5

591,3153.9

1,253.39

1,253.39

4

100.0

37,0460.2

8,863.98

8,623.81

33

97.3

501,809

3.3

Minami Azabu Bldg.

3,405.73

3,405.731

100.0(Note 2)

(Note 2)

Shinagawa Canal Bldg.

1,700.57

1,700.57

5

100.0

60,0080.4

Rokubancho Bldg.

2,488.36

2,488.361

100.0(Note 2)

(Note 2)

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

4,763.38

4,763.389

100.0

256,247

1.7

3,551.01

3,551.01

9

100.0

209,400

1.4

5,299.88

5,299.88

5

100.0

186,925

1.2

6,177.74

6,177.74

6

100.0

279,205

1.8

Ginza Sanwa Bldg.

1,896.69

1,896.69

9

100.0

119,6210.8

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

11,034.78

11,034.78

2

100.0

1,630,000

10.7

3,325.29

3,212.11

23

96.6

117,6260.8

5,401.46

5,401.46

9

100.0

184,079

1.2

Tokyo Square Garden
JPR Shibuya Tower Records
Bldg.
JPR Jingumae 432
Shinjuku Sanchome East
Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori
Bldg.
FUNDES Suidobashi

5,971.73

5,545.0749

92.9

393,655

2.6

8,076.85

8,076.851

100.0(Note 2)

(Note 2)

1,027.33

1,027.33

7

100.0

79,9670.5

2,347.81

2,347.811

100.0(Note 2)

(Note 2)

1,101.92

1,101.921

100.0(Note 2)

(Note 2)

1,665.79

1,665.79

9

100.0

199,1121.3

1,367.56

1,367.56

6

100.0

94,6040.630

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

33rd Fiscal Period (January 1, 2018 – June 30, 2018)
Type

OfficeRetailOther Cities

RetailGreater Tokyo

OfficeArea

Property Name

Information on Period End Floor Space, Etc.
Total
No. ofTotal Leased
Leasable
Tenants Occupancy
Floor Space
Floor Space(Note
Rate (%)
(m2)
2
(m )
1)

Rental Revenues(thousands of
yen)

Ratio

Arca East

7,022.76

7,022.76

6

100.0

254,552

1.7

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

5,536.18

5,362.27

39

96.9

136,1270.9

6,079.74

5,709.64

17

93.9

140,9460.9

5,284.75

5,284.75

22

100.0

104,935

0.7

15,503.27

15,503.27

45

100.0

423,596

2.8

JPR Ueno East Bldg.
Tachikawa Business Center
Bldg.
Rise Arena Bldg.

6,454.84

6,454.84

10

100.0

143,708

0.9

4,670.27

3,780.24

19

80.9

159,825

1.1

6,023.39

6,023.391

100.0(Note 2)

(Note 2)

Yume-ooka Office Tower

12,000.08

12,000.08

39

100.0

334,971

2.2

Olinas Tower
Tokyo Tatemono
Yokohama Bldg.
Omiya Prime East

23,987.40

23,652.51

16

98.6

952,098

6.3

6,494.01

6,194.61

18

95.4

286,434

1.9

6,871.45

6,871.454

100.0

271,222

1.8

Tanashi ASTA

31,121.71

31,121.71

1

100.0

(Note 2)

(Note 2)Cupo-la Main Bldg.

5,963.00

5,963.001

100.0(Note 2)

(Note 2)

JPR Musashikosugi Bldg.
Musashiurawa Shopping
SquareKawasaki Dice Bldg.
Niigata Ekinan Center
Bldg.
Tokyo Tatemono
Honmachi Bldg.
JPR Hakata Bldg.

19,740.95

19,740.95

1

100.0

(Note 2)

(Note 2)

14,960.69

14,960.69

3

100.0

127,0480.8

12,116.35

10,523.54

28

86.9

502,477

3.3

5,327.50

5,248.20

998.5

125,1090.8

7,136.30

6,435.28

9

90.2

114,8540.8

6,572.76

6,572.76

44

100.0

155,526

1.0

JPR Naha Bldg.

3,945.83

3,945.83

19

100.0

99,9540.7

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

7,129.14

7,129.14

15

100.0

187,852

1.2

4,876.71

4,711.79

14

96.6

106,8120.7

3,257.73

3,257.73

16

100.0

107,216

0.7

JPR Dojima Bldg.

3,918.28

3,775.59

12

96.4

143,593

0.9

JPR Nagoya Fushimi Bldg.

7,086.37

7,054.19

4

99.5

145,214

1.0

Yakuin Business Garden

16,654.33

16,635.09

17

99.9

501,900

3.3

JPR Shinsaibashi Bldg.

3,949.41

3,824.50

9

96.8

73,706

0.5

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

18,586.97

18,586.97

1

100.0

(Note 2)

(Note 2)35,444.13

35,444.13

1

100.0

(Note 2)

(Note 2)

2,478.42

2,478.425

100.0

164,4221.1

478,117.02

472,329.62

747

98.8

15,204,965

100.0

Total

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., and Residential part of
Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it
is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., Residential part of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena
Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuatesin accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues and their ratio of the properties due to inevitable reasons, as JPR has not been able to obtain consent fromthe tenants or co-owners, etc. as to disclosure of rental revenues, etc.

31

Japan Prime Realty Investment Corporation (8955) Financial Report for 33rd Fiscal Period

3) Ten Largest Tenants
The following table shows the ten largest tenants in terms of leased floor space as of June 30, 2018.

Rank

TenantProperty Name

Percentage to Total
Leased Floor Space
Leased Floor Spaceat End of Period
at End of Period(m2)(Note 1)

1

Tokyo Tatemono Co., Ltd

Shinjuku Square Tower
Shinjuku Center Bldg.
Tokyo Square Garden
Olinas Tower
Kawasaki Dice Bldg.
Tokyo Tatemono Honmachi Bldg.

2

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.5%

3

Seiyu GK

Tanashi ASTA

31,121.71

6.6%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.2%

5The LOFT Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

3.9%

6

Olympic Group Corporation

Musashiurawa Shopping Square

9,558.51

2.0%

7

Tower Records Japan Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

1.7%

8

Sompo Japan Nipponkoa
Insurance Inc.

8,058.27

1.7%

9

Y.K. Tokyo Prime Stage

7,875.50

1.7%

7,079.49

1.5%

Kawaguchi Center Bldg.
Yume-ooka Office Tower
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Otemachi Tower (Land with Leasehold
Interest)

49,697.16

10.5%

JPR Ueno East Bldg.
10

Hitachi Urban Investment, Ltd.

Yume-ooka Office Tower
JPR Hakata Bldg.
JPR Nagoya Fushimi Bldg.

(Note 1) For co-owned properties, etc., the figure indicates the leased floor space corresponding to the equity interest held by JPR.
(Note 2) The figures have been rounded to the first decimal place. The total leased floor space at end of period in the above table is based on
the space corresponding to the equity interest held by JPR (475,028.64m2).

32