38th
Report on Operating and Management Results
Thirty-Eighth Fiscal Period Semi-Annual Report
July 1, 2020 – December 31, 2020

Japan Prime Realty Investment Corporation

Otemachi Financial City North Tower

Japan Prime Realty Investment Corporation

Message to Our Unitholders
Dear Unitholders,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere gratitude for thecontinued loyal patronage you have extended to us.
We express our deepest condolences to those who have passed away because of the novel coronavirus(COVID-19) infection, and extend our heartfelt sympathies to those who have been stricken with the virus.
Having settled the 38th fiscal period (July 1, 2020 – December 31, 2020), we would like to report on theperformance results.
Since the summer of 2020, the Japanese economy had shown a pickup for some time, partly due to thegovernment’s policies like the “Go To” campaigns proving effective. Nevertheless, with the COVID-19
infection again spreading toward the end of the year and the government declaring the second state of
emergency early in the new year, the outlook continues to be uncertain.
Under such circumstances, JPR conducted asset replacement by utilizing sponsor pipelines, in an effort tomake its portfolio stronger. The properties owned by JPR also continued to operate at high occupancy.
These helped us to record distribution per unit of ¥7,750 for the 38th fiscal period.
For the 39th fiscal period ending June 2021 and thereafter, the business environment is likely to remain
unpredictable under the impact of COVID-19. In spite of this, JPR will continue its endeavors, together
with Tokyo Realty Investment Management, Inc. (TRIM) to which it entrusts asset management, to realize
our stable growth over the medium to long term while taking into account the governance of JPR as aninvestment corporation.
We ask you, our unitholders, to extend to us your continued consideration and support of our operations.

Yoshihiro Jozaki
Executive Officer
Japan Prime Realty Investment Corporation

Status of Distribution per Unit

Trends of Distribution per Unit

Determined Cash Distribution(yen/unit)

Forecast Cash Distribution (reference)

38th fiscal period
ended December 2020

39th fiscal period
ending June 2021

40th fiscal period
ending December 2021

¥7,750¥7,550¥7,5508,000

Achieved a period-on-period increase in cash distributions for the

fourteenth straight fiscal period

7,500

7,048

7,000

* The operating forecasts are calculated based on certain assumptions, and the distribution per unit may vary depending on additional acquisition or sale of specified assets in the future, changes in the
management environment and other factors. Moreover, the forecasts should not be construed as a guarantee of the amount of distribution per unit.

6,351 6,419

6,500

6,000

0

6,006

24th
Period6,588

7,213 7,223 7,245

7,326 7,380

7,493

7,595

7,750

(Forecast)

38th
Period39th
Period(Forecast)

7,550 7,550

6,756

6,150

25th
Period26th
Period27th
Period28th
Period29th
Period30th
Period31st
Period32nd
Period33rd
Period34th
Period35th
Period36th
Period37th
Period40th
Period(Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2020) (Jun. 2021) (Dec. 2021)

Contents
Message to Our Unitholders

1

Initiatives on Sustainability

9

Asset Management Report

31(5) Statements of Cash Flows56

Account Highlights

3

Portfolio Status

13

Financial Statements

51(6) Notes to Financial Statements

57

38th Fiscal Period Topics

5

Overview of Portfolio Properties

15(1) Balance Sheets

51(7) Detailed Schedules

67

Internal Growth Strategy

6Structure and History of JPR

29(2) Statements of Income and Retained Earnings

53(8) Independent Auditor’s Report71

External Growth Strategy

7

Overview of Asset Manager

30(3) Statements of Changes in Unitholders’ Equity

54(9) Other Notes (Information only)73

Financial Strategy

8(4) Statements of Cash Distributions

55

Investor Information

74

1

2

Japan Prime Realty Investment Corporation

Account Highlights
Portfolio

Financial Status

No. of Properties and Asset Size

Investment Ratio by Area

66 properties 467.5 billion yen

Tokyo:

Investment Ratio by Asset Class

85.0% Other Cities: 15.0%

Office:77.6%

Retail, etc. (Note):

Total Interest-Bearing Debts

22.4%

196.5 billion yen(Note) Retail, etc. refers to retail properties and hotels (the same applies throughout this report).

Asset Size Expansion Trends(billion yen)

Ratio of Interest-Bearing Debts to Total Assets
(LTV)

500

40.6%

400

300

Ratio of Long-Term, Fixed Interest Rate Debts

96.9%

200

Listed in June 2002
(Kanematsu Bldg.)

100

0
2nd Period(Dec. 2002)

4th Period(Dec. 2003)

6th Period(Dec. 2004)

March 2008
Acquired Shinjuku Center Bldg.

8th Period(Dec. 2005)

10th Period(Dec. 2006)

12th Period(Dec. 2007)

March 2012
Acquired Otemachi Tower(Land with Leasehold Interest)

June 2009
Acquired Olinas Tower

14th Period(Dec. 2008)

16th Period(Dec. 2009)18th Period(Dec. 2010)

20th Period(Dec. 2011)

22nd Period(Dec. 2012)

24th Period(Dec. 2013)

Operating Results

Operating revenue(million yen)

Profits for rent business(million yen)

Operating income(million yen)

Ordinary income(million yen)

Net income(million yen)

Distribution per unit
(yen)

3

February 2017
Acquired Tokyo Square
Garden26th Period(Dec. 2014)

28th Period(Dec. 2015)

30th Period(Dec. 2016)

32nd Period(Dec. 2017)

Issuer Rating

December 2020
Acquired Otemachi
Financial City North Tower

34th Period(Dec. 2018)36th Period(Dec. 2019)

38th Period(Dec. 2020)

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

Responses to Tenants upon State of Emergency Declaration

37th Period
ended
Jun. 2020
Results

38th Period
ended
Dec. 2020
Results

16,363

17,129ChangeChangeRate ofchange

+766

+4.7%

TOPIC 1
Operating revenue includes gain on saleof part of JPR Hakata Bldg.

TOPIC 2■■ JPR’s Responses
JPR has provided support for business continuity to the tenants who have suffered sales declines and other impacts
resulting from the state of emergency declarations associated with the spread of the COVID-19 infection,
comprehensively considering the requests from relevant government agencies and the impact on its future asset
management.
Support Provided upon the State of Emergency Declared in 2020

8,927

9,103

+176

+2.0%

8,013

8,533

+519

+6.5%

Increased ¥176 million period-on-period
due to the properties acquired in theprevious fiscal period contributing
throughout the 38th fiscal period,
although negatively impacted by the rent
reductions granted for large tenants, etc.

+7.7%

TOPIC 3❚❚ Plans to conduct temporary rent reductions mainly for restaurants and eateries.

Gain on sale of property associated withproperty replacement has been internallyreserved as reserve for reduction entry forthe purpose of securing stable
management and distributions in the
future.

❚❚ The estimated amount of temporary rent reductions is shown in the table below (for the 39th fiscal period ending June 2021).

❚❚ Granted tenant compensation in association with the closure of whole buildings at some retail properties❚❚ Conducted payment moratorium and temporary reduction of rents, in consideration of the operational status of individual
tenants, etc.
❚❚ The number of cases and amounts of temporary rent reductions are shown in the table below (for the 37th and 38th fiscal periods).

Support to Be Provided upon the State of Emergency Declared in 2021
7,277
7,276
7,595

7,840
7,839
7,750

+562
+562
+155

+7.7%
+2.0%

■■ Grant of Temporary Rent Reductions
37th Period (Jun. 2020)

38th Period (Dec. 2020)

39th Period (Jun. 2021) (estimate)No. of cases

61

43

Undetermined yet

Total amount of reductions

94 million yen

45 million yen

45 million yen
4Japan Prime Realty Investment Corporation

38th Fiscal Period Topics

Internal Growth Strategy

In an attempt to further improve the quality of its portfolio, JPR conducted asset replacement with Tokyo
Tatemono, its main sponsor.

Overview of Asset Replacement

Major Reinforcement Strategies

Acquisition

Sale

Otemachi Financial City North Tower

Assetreplacement

Central Tokyo
8 years since being built

Acquisition

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

1. Flexibly use target rents

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

2. Reinforce investments forvalue enhancement

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

3. Continuously enhancetenant satisfaction

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

JPR Hakata Bldg.
Other Cities
35 years since being built

Otemachi Financial City North Tower

A large-scale, high-rise office building featuring high scarcity value and located in the Otemachi area of Tokyo, one of
the leading financial business districts in Japan
AtriumColumn-free, regular-shaped
space of approximately 700
tsubos per floor

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
remained at a high level, with thefigure reaching the 99% level for the
38th fiscal period.

Entire portfolio
(%)

100

99.4
98.2

98

Office properties
99.9

99.9

99.2

99.2

98.8

98.8

34th Period(Dec. 2018)35th Period(Jun. 2019)

Retail properties, etc.
100.0
100.0
99.6
99.5
99.2

99.4

36th Period(Dec. 2019)37th Period(Jun. 2020)

100.0

99.4
99.1

97.6
96

94
Location

Acquisition Date

¥11,400 million



Ownership interestCompleted

Total Floor Space

15,838.93 m2



239,769.07 m2(including South Tower)

Tokyo Tatemono Co., Ltd.

JPR Hakata Bldg.
Sale ❶ (35.0%)
Sale Date (Note) December 24, 2020


BuyerCompleted5

December 24, 2020

(including South Tower)

SellerLocationHakataekimae, Hakata-ku,
Fukuoka-shi, Fukuoka
Tokyo Tatemono Co., Ltd.
June 26, 1985

Sale Price (Note)
Gain on Sale

0

5.7%

33rd Period(Jun. 2018)

38th Period(Dec. 2020)

October 1, 2012



Site Area


Sale

92

Otemachi, Chiyoda-ku, Tokyo

Acquisition Price

Sale ❷ (65.0%)
March 29, 2021

¥1,435 million¥2,665 million¥414 million¥784 million(planned)

Changes in Revised Amount of Monthly Rent, Etc.
The trend of upward revision ofrents continued through the 38th
fiscal period, although rent
reductions were granted for certain
large tenants.

(million yen)

Upward revision

40

Downward revision
+29.2

+24.5
20

+17.1

+13.4
+7.6

+7.4
0
-3.0

-0.2

-1.9

-1.1

0.0

34th Period(Dec. 2018)35th Period(Jun. 2019)36th Period(Dec. 2019)37th Period(Jun. 2020)

-20

-40

-34.6
33rd Period(Jun. 2018)

38th Period(Dec. 2020)(Note) The sale date and sale price are based on data recorded in the trust beneficiary interest
transfer contract.

6

Japan Prime Realty Investment Corporation

External Growth Strategy

Financial Strategy

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

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

Financial Status

Basic Strategy
1. F ocused investments in officeproperties in Tokyo

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

Compared with other regional cities, Tokyo allows expectations for more stable occupancy and higher rent levels. Looking ahead,
JPR will continue to make investments focused on office properties in Tokyo, with an aim to further improve the quality of its
portfolio and enhance its growth potential over a long term.

2. Vigorously selective
investments in office properties
in regional cities as well as
retail properties, etc.

JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 38th fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

Ratio of Interest-Bearing Debts to Total Assets (LTV)

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

40.6%

AA- (Stable)

Ratio of Long-Term, Fixed Interest Rate Debts

S&P (S&P Global Ratings Japan Inc.)

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

96.9%

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

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

Long-term:

Short-term:

JPR has successfully reduced debt cost while placing emphasis on lengthening the maturity of procured debts anddiversifying the repayment dates.
Comparison of Debts Matured andNew Debts Procured in the 38th
PeriodFUNDES Ueno

Average maturity(excluding short-term loans payable)

Average Maturity of the Entire Interest-Bearing Debts and Average Debt Cost
JPR has worked to reduce financing costs and stabilize financial operations bylowering the average debt costs and lengthening the average maturity.
(%)

Average maturity (right axis)

1.2
0.96

6.8 years ➤ 9.2 years

0.9

1.03

0.94

0.90

0.87

0.80

0.3

0.96% ➤ 0.54%(down 0.41 percentage points)

Taisei Corporation■■ Utilization of Sponsor Pipelines
At JPR, properties acquired from its sponsors, etc. (52.9%) andproperties acquired based on the information provided by thesponsors (21.0%) together constitute 74.0% of the entire portfolio(on an acquisition price basis).
Going forward, JPR will continue to utilize the sponsor pipelines inan endeavor to enhance the quality of the portfolio throughvigorously selective investments in blue-chip properties and strategic
asset replacement.

Japan Prime Realty
Investment Corporation

FUNDES Ueno was acquired from
Tokyo Tatemono.

0.78

Properties acquired
from third parties

0.0

4.0
4.3
years

4.6
years

4.6
years

4.5
years

4.5
years

4.6
years

4.6
years

4.6
years

2.0

31st Period 32nd Period 33rd Period 34th Period 35th Period 36th Period 37th Period 38th Period(Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2020)

0.0

JPR has endeavored to mitigate refinance risks by diversifying repayment dates while establishing a commitment linewith a credit limit of 24 billion yen.
(billion yen)

121.7 Properties
billion yen

Short-term loans payable

15

acquired fromsponsors, etc.

26.0%
98.2 247.4

Investment corporation bonds

Long-term loans payable20billion yen

Properties acquired
based on information
provided by sponsors

6.0

0.76

Diversification of Repayment Dates for Interest-Bearing Debts(securities code: 8955)

Properties acquiredby utilizing sponsor pipelines

74.0%

8.0

0.6

Average debt cost(excluding short-term loans payable)

Yasuda Real Estate(years)Average debt cost (left axis)(up 2.4 years)

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

A-1

Financing Status for the 38th Fiscal PeriodTokyo Tatemono

Meiji Yasuda Life Insurance

A (Stable)

6.0
10

2.0

5.0

3.0

7.0

8.0

billion yen

21.0% 52.9%*Based on the status at the time when respective properties were acquired.

8.5
13.05

9.8

10.0

10.5

8.0

8.0

13.0

13.0

10.9

10.0
3.0

0

39th
Period40th
Period41st
Period42nd
Period43rd
Period44th
Period45th
Period46th
Period47th
Period48th
Period49th
Period

3.0

9.0

50th
Period51st
Period

7.1

5.0

4.2

3.5

52nd
Period53rd
Period54th
Period

5.0

6.0
10.0

4.0
55th
Period56th
Period4.0
57th
Period58th
Period(Jun. 2021) (Dec. 2021) (Jun. 2022) (Dec. 2022) (Jun. 2023) (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) (Dec. 2026) (Jun. 2027) (Dec. 2027) (Jun. 2028) (Dec. 2028) (Jun. 2029) (Dec. 2029) (Jun. 2030) (Dec. 2030)

78Japan Prime Realty Investment Corporation

Initiatives on Sustainability
For JPR to grow stably over the medium to long term, it is essential to address such social requirements as
considerations to the environment, society and governance. JPR will continue its endeavors to enhancesustainability, including its initiatives for environmental friendliness.

Materialities

Sophisticating
corporate
governance

Sustainability Policy
Based on its corporate philosophy of working with integrity and responsibility, TRIM is resolved to contribute to thesustainable development of the society and the investment management business through discussion and cooperation
with its stakeholders (including investors and tenants), and aims to maximize value for JPR’s unitholders.

1. Initiatives on Behalf of Tenants
Respond to tenants with integrity and responsibility, and endeavor to provide them with new and distinct value as well as enhancetheir satisfaction.

2. Initiatives on Behalf of the Environment
Aim to reduce environmental footprint through managing the assets JPR owns, in recognition of the importance of addressing
environmental issues.
❚❚ Promote energy saving and reduction of greenhouse gas emissions.
❚❚ Work on effective use of water resources and promote "3Rs" (reuse, reduce and recycle) of waste.
❚❚ Strive to proactively disclose information on environmental issues.

3. Initiatives on Behalf of Local Communities
Work to coordinate with local communities through managing the assets JPR owns in the area, in an effort to contribute toenhancing the brand value of the entire area.

4. Initiatives on Behalf of Employees
Respect each one of the employees and promote realization of a pleasant work environment by helping them enhance theirprofessional expertise.
Abide by laws and regulations as well as rules of the society and, with a high ethical perspective, focus on transparency andobjectivity in conducting business.

Recognizing the importance of addressing environmental issues for real estate investment management, JPR strives toreduce its environmental footprint by upgrading facilities and improving operation at the properties it owns. It alsoendeavors to conduct eco-friendly management by giving consideration to the comfort of facility users and biodiversity.

■■ Monitoring of CO2 Emissions
JPR monitors CO2 emissions of each of its properties in order to effectively reduce the environmental footprint. Moreover, it hasestablished a benchmark for the entire portfolio to measure the relative performances of respective properties. This enables JPR to
identify properties having much room for improvement. By doing so, JPR has prepared measures to effectively reduce CO2
emissions of its entire portfolio, and systematically implements works for better energy efficiency while analyzing the effectivenessand expenses of CO2 emissions.

Comparison of Energy Consumption Data by Property (for offices with total floor space of less than 10,000 m2)(gigajoule/year)

18,00015,000

Based on its corporate philosophy, TRIM has identified important agendas (materialities) it should work on, as
described below, and also established its strategies and goals for 2030. TRIM will promote its initiatives for attaining
the goals in an endeavor to contribute to the Sustainable Development Goals (SDGs).

9

Buildings with room for improvement

12,0006,000

Energy-efficient buildings

3,000
0

2,000

4,000

6,000

8,000

10,000(m2: total floor space equivalent to JPR’s ownership)

Materialities for JPR and TRIM

Portfolio greening • Raise the ratio of properties thathave acquired green
certifications• Improve the environmental
ratings of properties
Addressing• Reduction of CO2 emissions
climate change• Efficient use of water resources• Strengthen management ofclimate change risks• Work with tenants to address
climate change
Improving tenant • Improve tenant satisfaction bysatisfaction
providing services, both in terms
through safety,of products and operational
security andknow-how, for safety, security
comfortand comfort
Creating an• Strengthen human resources byencouraging andsupporting self-development
rewardingand providing training
workplace• Build a highly efficientenvironment
operational structure• Maintain and improve physicaland mental health• Provide an encouraging andrewarding workplaceenvironment

SDGs

Initiatives on Environmental Friendliness

0

Strategies

Goals for 2030

• Ensure information disclosure at a level among the highest in theindustry• Proactively discuss with investors• Promote discussions with individual investors• Obtain ESG assessments that are among the highest in the industry• Maintain a strong corporate governance system• Secure a risk management structure that is among the strongest in
the industry

9,000

5. Initiatives on Behalf of the Society

Materialities

Strategies• Conduct highly transparent
operations through proactive IR• Enhance overall strengths of the
ESG promotion structure• Secure a strong corporate
governance system• Reinforce the risk management
structure

Goals for 2030

• Ratio of properties with green certifications at 80% or more
• Improving the ratio of properties with ratings better than standard
evaluations• Reduce CO2 emissions intensity by 30% (compared with the 2017
level)• Reduce water use intensity by 10%• Build an industry-leading, strong structure to manage climatechange risks• Expand green lease agreements• Improve tenant satisfaction in comprehensive aspects including
safety, security and comfort• Foster professionals who serve to bolster corporate growth• Enhance operational efficiency and improve operational processes• Secure physical and mental health and achieve work-life balance• Provide an environment where each person can fully exert his or
her abilities

SDGs■■ Promotion of Works for Reducing Environmental Footprint
Refurbishment to highly energy-efficient facilities is essential for reducing environmental footprint. JPR has established long-termwork plans for each of its properties, and adopts facilities that effectively reduce environmental footprint.

Trends of Works on LED Lamps and Air-Conditioning Units(million yen)

Replacement to LED lamps

500

Replacement of air conditioning units

400
300
200

211

0

310

258

31st Period(Jun. 2017)

256

227

185
130

123

105

125

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

34th Period(Dec. 2018)35th Period(Jun. 2019)100

New Acquisition of CDP Score

414

368

339

152

36th Period(Dec. 2019)

233

182
119

37th Period(Jun. 2020)

38th Period(Dec. 2020)88

39th Period(Jun. 2021) (planned)

SUSTAINABILITY COLUMNCDP is an international not-for-profit organization that has conducted surveys on the countermeasures against global warming
by listed companies since 2003, supported by institutional investors worldwide.
CDP assesses companies’ responses to the climate change issues in terms of such items
as greenhouse gas emissions and business risks and opportunities due to climate change.
The assessment is granted in 9 ranks of A, A-, B, B-, C, C-, D, D- and F.
In 2020, JPR obtained the B score of the CDP Climate Change Program.

10Japan Prime Realty Investment Corporation

Initiatives on Sustainability■■ Risk Management

Initiatives on Social Awareness
JPR and TRIM, the Asset Manager, have relationships with a variety of stakeholders that include, on top of theunitholders, the lenders, tenants, local communities, property management companies and the employees of TRIM.
We are resolved to conduct business with a strong sense of integrity and responsibility, in order to build a good
relationship with the stakeholders over a long term.

■■ Enhancing Safety and Security
JPR and TRIM believes that it is their most important responsibilities to secure safety of its tenants and users and provide facilities
and services that they can utilize at ease.
Continuous and thorough endeavors are required to provide safety, security and high-quality services. Accordingly, we utilize theknow-how fostered by the sponsors and work on business operations by putting safety first.

1. Continuous implementation of disaster drills

2. Installation and enhancement of emergency supplies

Periodical drills are
conducted, together with
employee education, so thatnatural disasters and othercontingent events can be dealt
with appropriately. In 2020,
endeavors were made toreinforce resilience inconsideration of such majordisasters as flooding.

Prior preparations areindispensable to protect thesafety of employees andtenants when disasters occur.
In 2020, simple generators for
emergency were installed withan eye on the importance of
charging batteries ofsmartphones and otherdevices.

Portfolio hazard map

Magnesium air battery for emergency■■ Decision Making Based on Stringent Processes❚❚ In particular, material transaction matters conducted with thesponsors, etc. are screened and verified by the Compliance
Committee as to their adequacy and rationality. The
Committee employs a unanimous vote for approvals inprinciple.
❚❚ An outside attorney has been appointed as a special memberof the Compliance Committee.

Members of the Compliance Committee of TRIM

Stringent Decision-Making Process(for property acquisitions)
Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties
Final decision on Acquisition

Compliance Committee /JPR’s Board of Directors
Investment Subcommittee

President and CEO
Corporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager

Special member (outside attorney)

11

Decision making on acquisition
over certain amountConclude agreement

Improve thesituation❚❚ In conducting information management, TRIM implements safetymeasures against various threats and has prepared contingency
plans to prepare for failures, etc.

Assess risks

Monitor thesituation

Respond to risks

Recognition by External Bodies■■ Acquisition of GRESB Real Estate Assessment

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

Proposal, planning

Identify risks❚❚ In order to enhance and reinforce risk management activities, JPR
and TRIM continuously work to identify, assess and respond torisks and monitor and improve the situation.

JPR is endeavoring to enhance energy use efficiency and safety and convenience of users from the perspective of environmental
awareness that is increasingly heightened socially. As part of such endeavors, JPR is promoting acquisition of recognitions
from external assessment bodies in order to objectively monitor the environmental performance of its owned properties.

Initiatives on Governance❚❚ Upon making decisions on property acquisitions, asset
management and other issues, TRIM conducts stringent
screening and takes other procedures from various
perspectives through designated committees and otherinstitutions.

TRIM’s Risk Response Scheme❚❚ JPR and TRIM has established an effective risk management
system, and endeavor to avoid occurrence of risks related toinvestment management and address risks in case they occur.

TRIM’s Board of Directors
Acquisition

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

GRESB is a benchmarking assessment to measure ESG awareness of real estate companies and funds, as wellas the name of organization which runs the assessment system. Of the survey subjects, GRESB Real Estate
Assessment covers real estate companies and funds that are mainly engaged in managing existing properties.
JPR was designated as “Green Star” for the seventh consecutive year in the 2020 GRESB Real Estate
Assessment. JPR was also granted the highest rank of “5 Stars” in the GRESB Rating, which makes
relative assessments in five ranks based on total scores, for the second consecutive year.

■■ Status of Acquisition of Environmental Certifications
As part of the measures to enhance thequality of its portfolio, JPR works toobtain sustainability certifications.
JPR will promote building of a portfoliothat has smaller environmental footprint
and higher sustainability, aiming toachieve its goal of 80% for the ratio of
properties having acquired environmental
certifications by 2030.

Assessment in CASBEE
for Building Certification★★★★★ 7 properties★★★★ 8 properties★★★
1 properties

DBJ Green Building Certification★★★★★ 2 properties★★★★ 3 properties★★★
7 properties★★
2 properties

BELS Certification★★★

1 properties

Trends in the Ratio of Properties with Environmental Certifications and Their Total Floor Spaces(%)

Ratio of acquisition (left axis)

80

53.4

60
40

54.4

(thousand m2)

Total floor space (right axis)
60.1

65.5

600

34.0

400

20
0

800

200
34th Period(Dec. 2018)35th Period(Jun. 2019)36th Period(Dec. 2019)37th Period(Jun. 2020)

38th Period(Dec. 2020)

0

CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency,
is a system for comprehensively assessing the environmental performance of buildings. Efforts todevelop and popularize the system in Japan are being made under the leadership of the Ministryof Land, Infrastructure, Transport and Tourism. The system comprehensively assesses theenvironmental quality of buildings, including indoor comfort and consideration for the landscape,on top of the aspect of environmental consideration such as energy saving and the use ofmaterials and equipment with a lower environmental burden.
The DBJ Green Building Certification is a certification system to select superior real estate thatmeets the demand of the times by scoring buildings based on the scoring model originallydeveloped by Development Bank of Japan Inc. (DBJ). Its purpose is to promote properties thatare environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet thesocial requirements surrounding real estate from various stakeholders (“Green Buildings”). The
assessment results are indicated in five ranks.
BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performancelabeling system created for the purpose that a third-party organization accurately conducts theevaluation and indication of energy efficiency performance of non-residential buildings in accordancewith the Assessment Guidelines on Energy Efficiency Performance of Non-residential Buildings (2013)
established by the Ministry of Land, Infrastructure, Transport and Tourism.
Third-party organizations assess energy-saving performance, etc. based on a variety of measurement
criteria, indicating the results by the number of stars (★ to ★★★★★).

*The number of properties with environmental certifications is as of December 31, 2020.

12

Japan Prime Realty Investment Corporation

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

Target investment ratio by area

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

Office: 70 - 90%
Retail, etc.: 30 - 10%

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

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

10

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

Office properties
in Central Tokyo

Asset Size Expansion Trends(billion yen)

500

Office properties in Tokyo

Office properties in Other Cities

Circle size: asset size (based on acquisition price)

Office properties
in Greater Tokyo

Office properties
in Other Cities

Retail properties, etc.

467.5

97.7 billion yen
5.9%

450
400

5

350
300

43.8 billion yen
6.3%

221.1 billion yen
4.3%

250

Retail properties, etc.

104.7 billion yen
4.5%

Portfolio average

4.9%

200
150
100
50

0

0
Start of 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th
management(at period end)

(Note 1) Asset size (based on acquisition price) refers to the total acquisition price of properties (limited to those owned at the end of the fiscal period) belonging to each category.
(Note 2) NOI yield (based on acquisition price; annualized) refers to the yield of NOI* in each category, annualized in accordance with the number of operating days of properties (including thoseacquired or sold in the fiscal period) in the relevant category (the average number of operating days weighted by acquisition price). Figures are rounded to the first decimal place.
*NOI = Real estate rental revenues - real estate rental expenses + depreciation(Note) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.

Status of Tenant Diversification (ratio of tenant occupancy of 1% or more)

Changes in Investment Ratios by Area and by Asset ClassAs a result of focused investments in office properties in Tokyo, the investment ratio of office properties in Tokyo stoodat 68.2% as of the end of the 38th fiscal period, up 24.7 percentage points compared with the 43.5% as of the end of the
1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 38th Fiscal Period (December 31, 2020)

Increase in the investment ratio of
office properties in Tokyothrough focused investments
Office in
Other Cities
42.1%

Office in
Tokyo
43.5%

Retail, etc.
in Tokyo
14.4%+24.7 percentage points

Retail, etc. in
Other Cities
5.6%
Office in
Other Cities
9.4%
Retail, etc.
in Tokyo
16.8%

1% or more by sponsors, etc.
1 tenant / 1.6%

1% or more by other tenants(except for sponsors, etc. and tenants ofretail properties, etc.)
4 tenants / 4.5%
Number of tenants

Officein Tokyo

68.2%(Note) The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

13

If the ratio of occupancy (ratio of occupied floor space in the portfolio) by a single tenant is low, it reduces the risk oflower revenue when the tenant cancels a contract in the future. JPR keeps the ratio low to enhance the stability ofrevenue.

Less than 1%

844 tenants / 67.1%

857

companies

1% or more by tenants of retailproperties, etc.

8 tenants / 26.9%(Note) Ratio of occupancy = Leased space of each tenant / total leased space
The number of tenants indicates the number of sublessees, which shows the diversification status in effect, when the tenant subleases the relevant property to sublessees (end tenants), etc. andthe leasing terms and conditions vary in accordance with the situation of subleasing. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If theleased rooms are in multiple buildings, the tenant is counted in plural.

14

Japan Prime Realty Investment Corporation

Overview of Portfolio Properties
List of Properties (66 Properties for the Entire Portfolio)
Central Tokyo (32 Properties)
Property
NumberOfficeRetail,etc.

Property Name

Location

A-1
A-2
A-3

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

Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

A-5
A-6
A-7
A-9
A-10

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West

Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Shinagawa-ku, Tokyo
Chiyoda-ku, Tokyo
Shinagawa-ku, Tokyo

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

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

¥16,276
2,874
2,100
1,670
550
200
2,420
4,000
11,200
2,920
5,100
3,500
10,000
180
4,000
786
14,966
2,900
8,921
3,300
15,121710
21,000
3,760
1,870
171
2,041
2,800
8,400
5,100
15,0503,400

3.5 8,090.42
0.6 2,291.13
0.4 2,802.22
0.4
0.1
3,319.37
0.0
0.5
0.9 3,265.34
2.4 14,468.38
0.6 4,241.22
1.1 4,240.37
0.7 4,088.44
2.1
0.0
0.9 19,266.38
0.2
3.2
0.6
1.9
15,227.80
0.7
3.2
0.2 1,253.39
4.5 8,865.71
0.8 3,405.73
0.4
0.0 1,870.50
0.4
0.6 2,488.36
1.8 4,761.51
1.1 5,299.88
3.2 6,177.74
0.7 1,896.69

A-13
A-14
A-15

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

Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Minato-ku, Tokyo

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

A-17
A-18
A-20
A-21
A-22

Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.

Chiyoda-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo

A-23

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0007.7 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo
Minato-ku, Tokyo

5,401.46

5.6

A-26

Tokyo Square Garden

Chuo-ku, Tokyo

5,971.73

2.6

A-27
A-28
A-1
A-3

JPR Kojimachi Bldg.
Otemachi Financial City North Tower
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432

Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo

3,493.67
4,191.96
8,076.85
1,027.33

3.3
2.0
5.8
5.4

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

0.6
0.7
0.2
0.9
2.0
2.0
3.9
1.2
2.4
2.6
0.9
0.1
0.5
0.6

3.1

Shibadaimon Center Bldg.

2,660
3,420
800
4,220
9,200
9,200
18,4005,750
11,40012,000
4,275
540
2,200
2,740

3,325.29

A-25

Dec. 6, 2013
Dec. 6, 2013
Jul. 30, 2014
Total
Feb. 1, 2017
Apr. 4, 2017
Total
Jun. 27, 2019
Dec. 24, 2020
Jun. 30, 2003
Mar. 24, 2006
Mar. 14, 2007
Apr. 24, 2008
Total

2,347.81

1.6

A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Aug. 27, 2008

3,400

0.7

Chiyoda-ku, TokyoJPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi

Chuo-ku, Tokyo
Chiyoda-ku, Tokyo
Subtotal

Dec. 15, 2016
Dec. 15, 2016

10,1003,250¥256,933

2.2
0.7

1,101.92

Property
NumberPML (%)

Dec. 27, 2001
Dec. 27, 2001
Nov. 16, 2001
Nov. 16, 2001
Nov. 21, 2002
Nov. 12, 2004
Total
Jun. 21, 2002
Mar. 28, 2003
Jul. 23, 2003
May 28, 2004
Jun. 1, 2004
Jul. 2, 2004
Sep. 26, 2008
Mar. 25, 2015
Oct. 21, 2015
Total
Nov. 9, 2004
Apr. 12, 2005
Jul. 13, 2010
Total
Nov. 26, 2004
Mar. 27, 2008
Jul. 14, 2008
Dec. 19, 2008
Mar. 8, 2019
Total
Dec. 2, 2009
Dec. 25, 2009
Mar. 31, 2010
May 31, 2010
Aug. 29, 2011

A-6
A-7

15

Acquisition Date

Greater Tokyo (19 Properties)

3.9
5.8
3.7

4.4

7.8
6.8
7.3
4.9
3.5

Location

B-1
B-2
B-3

Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.

Sumida-ku, Tokyo
Chiba, Chiba
Yokohama, Kanagawa

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

B-6
B-7

Kawaguchi Center Bldg.
JPR Ueno East Bldg.

Kawaguchi, Saitama
Taito-ku, Tokyo

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

B-9
B-10
B-11
B-12
B-13
B-14
B-1
B-3
B-4
B-5
B-6
B-7

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg. (Note 4)
Omiya Prime East
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno

Toshima-ku, Tokyo
Yokohama, Kanagawa
Sumida-ku, Tokyo
Yokohama, Kanagawa
Saitama, Saitama
Chiba, Chiba
Nishitokyo, Tokyo
Kawaguchi, Saitama
Kawasaki, Kanagawa
Saitama, Saitama
Kawasaki, Kanagawa
Taito-ku, Tokyo

3.1
Retail,
etc.

6.8
6.5

55.0 166,326.73—¥5,880
2,350
2,927
920
570
1,490
8,100
3,250
888
2,300
3,188
5,831
6,510
31,3007,000
6,090
13,870
10,200
2,100
7,254
4,335
15,0803,800

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

1.3
0.5
0.6
0.2
0.1
0.3
1.7
0.7
0.2
0.5
0.7
1.2
1.4
6.7
1.5
1.3
3.0
2.2
0.4
1.6
0.9
3.2
0.8

PML (%)

5,284.75

10.5

15,503.27
6,454.84

6.8
3.9

4,588.89

4.1

6,023.39
11,998.77
23,987.40
6,493.99
6,871.45
13,271.20
31,121.71
5,963.00
19,740.95
14,960.69
12,106.71
1,989.66

1.3
3.4
2.4
5.2
2.4
2.4
3.5
8.1
4.5
7.1
5.9
4.3

¥140,555

30.1 205,004.08—

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

PML (%)¥2,140
4,150
1,885
1,560
3,150
1,670
2,810
2,140
4,137
10,996
5,430
3,750
8,000
5,000
13,0007,220
6,000

0.5 5,327.50
0.9 7,132.22
0.4 4,278.67
0.3 3,945.18
0.7 7,129.14
0.4 4,876.35
0.6 3,257.07
0.5 3,918.28
0.9 7,086.37
2.4 16,654.33
1.2 4,021.63
0.8 5,695.71
1.7
1.1 18,586.97
2.8
1.5 35,444.13
1.3 2,478.42

1.7
4.3
0.5
5.7
2.0
10.6
1.6
5.0
6.3
1.6
11.5
7.6

Subtotal¥70,038

15.0 129,831.97

—

Total

¥467,526

100.0 501,162.78

2.1

Subtotal

Other Cities (15 Properties)

7.7
6.8
5.0
2.6
4.5

1,665.79
1,367.56

Nov. 16, 2001
Dec. 13, 2001
Nov. 16, 2001
Sep. 25, 2002
Mar. 28, 2013
Total
Feb. 13, 2004
Mar. 1, 2004
Sep. 30, 2005
Feb. 28, 2007
Total
Mar. 22, 2007
Jul. 10, 2007
Jun. 29, 2009
Dec. 27, 2010
Mar. 22, 2013
Mar. 27, 2020
Nov. 16, 2001
Mar. 31, 2006
Sep. 28, 2006
Mar. 19, 2007
Apr. 12, 2007
Jun. 27, 2019

AcquisitionPrice(in millions)

3.2
3.9
6.7

5.3

3.0

Acquisition Date

7,022.76
5,540.91
6,079.74

Office

1.3

4.7
1.3
6.0

Property Name

Property
NumberOfficeRetail,etc.

Property Name

Location

C-1
C-4
C-7
C-9
C-12
C-13
C-14
C-17
C-19
C-20
C-21
C-22

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg. (Note 5)
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West (Note 6)

Niigata, Niigata
Osaka, Osaka
Fukuoka, Fukuoka
Naha, Okinawa
Sendai, Miyagi
Wakayama, Wakayama
Fukuoka, Fukuoka
Osaka, Osaka
Nagoya, Aichi
Fukuoka, Fukuoka
Osaka, Osaka
Osaka, Osaka

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

C-4
C-5

Housing Design Center Kobe
JPR Chayamachi Bldg.

Kobe, Hyogo
Osaka, Osaka

Acquisition Date

Nov. 16, 2001
Nov. 16, 2001
Nov. 16, 2001
Nov. 16, 2001
Jun. 26, 2002
Jun. 26, 2002
Jun. 21, 2002
Jan. 23, 2004
Mar. 22, 2005
Aug. 8, 2012
May 30, 2005
Jan. 30, 2020
May 15, 2003
Jul. 16, 2003
Total
Sep. 28, 2005
Aug. 30, 2006

(Note 1) The table above shows properties owned by JPR as of December 31, 2020.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the ownership interest held by JPR.
(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Risk Management Inc., rounded down to the first decimal place.
(Note 4) The property was renamed from Tokyo Tatemono Yokohama Bldg. to JPR Yokohama Bldg. on January 1, 2021.
(Note 5) For JPR Hakata Bldg., JPR sold its 35.0% co-ownership interest of the trust beneficiary interest in real estate on December 24, 2020. Accordingly, the acquisition price indicates the amountequivalent to 65.0% co-ownership interest JPR owns as of the end of the 38th fiscal period.
(Note 6) The property was renamed from Minami Semba Bldg. to JPR Shinsaibashi West on January 15, 2021.

4.3
7.2
8.4

16

Japan Prime Realty Investment Corporation

Portfolio Map

A Central Tokyo

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

Omiya

A-11

A-14

Shinjuku

B-13

Shinjuku Ward

A-12
A-4

A-7

Ichigaya

Chiyoda
Ward

A-9
A-24
A-4

A-17
A-27

A-28
A-23
Tokyo

A-21
Shibuya Ward

A-5

A-3
Shinbashi

A-18

A-6

A-25

Shibuya

SAITAMA

Sobu Line

A-20

Musashiurawa

A-1 A-2

A-22

B-8

TOKYO Tanashi

A-7

Shinagawa Ward

Chuo Ward

A-6

Tokaido Shinkansen

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

● A-16● A-17● A-18● A-20● A-21● A-22● A-23● A-24● A-25● A-26● A-27

Funabashi
Kinshicho

Tokyo

Keiyo Line

B-14

Shinagawa

B-4

Chiba

B-2

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping
Square■ B-6 Kawasaki Dice Bldg.
■ B-7 FUNDES Ueno

B-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

Retail
■ B-1
■ B-3
■ B-4
■ B-5

Musashikosugi
Tokaido Main Line
Kawasaki

B-10

Uchibo Line

B-3

Kamiooka

A-16

C Other Cities
OfficeOffice
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-9
● A-10● A-11● A-12● A-13● A-14● A-15B-7 B-7

ShibuyaNambu Line

Yokohama Line

Keihin Tohoku Line
Tokaido Main Line

Tokaido Shinkansen
Yokosuka Line

B-11
B-1 Sobu Main LineMusashikosugi

A-10
Osaki

Matsudo

Ueno

Shinjuku

Tachikawa

Tamachi

Shinagawa

B-9

Chuo Main Line

KANAGAWA

GotandaB-6
B-3

Ikebukuro

B-1

Hamamatsucho

A-15

Kawaguchi

CHIBA
Seibu Shinjuku Line

Minato Ward

Yamanote Line

Minamiurawa

Saikyo Line

A-13
Keiyo Line

B-5

Musashino Line

A-3
A-26

Harajuku

A-1

A-5● B-1 Arca East
● B-2 JPR Chiba Bldg.
● B-3 JPR Yokohama Nihon
Odori Bldg.
● B-5 Shinyokohama 2nd
Center Bldg.
● B-6 Kawaguchi Center Bldg.
● B-7 JPR Ueno East Bldg.
● B-8 Tachikawa BusinessCenter Bldg.
● B-9 Rise Arena Bldg.
● B-10 Yume-ooka Office Tower● B-11 Olinas Tower● B-12 JPR Yokohama Bldg.
● B-13 Omiya Prime East
● B-14 Sencity Bldg.

Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(Land with Leasehold Interest)
Science Plaza – Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.

Property acquired in 38th Fiscal Period● A-28 Otemachi Financial City North Tower
Retail
■ A-1
■ A-3
■ A-4
■ A-5
■ A-6
■ A-7

JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi● C-1 Niigata Ekinan Center Bldg.
● C-4 Tokyo Tatemono Honmachi Bldg.
● C-7 JPR Hakata Bldg.
● C-9 JPR Naha Bldg.
● C-12 Sompo Japan Sendai Bldg.
● C-13 Sompo Japan Wakayama Bldg.
● C-14 Tenjin 121 Bldg.
● C-17 JPR Dojima Bldg.
● C-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden● C-21 JPR Shinsaibashi Bldg.
● C-22 JPR Shinsaibashi WestFUKUOKA

Retail
■ C-1
■ C-4
■ C-5

OSAKA

C-7
C-14
C-20

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

C-4
C-17
C-21
C-22
C-1
C-5

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19

A

Chiyoda Ward
Chuo Ward

17

B

Central Tokyo
Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

Greater Tokyo

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

C

Other Cities

NAHA

All other areas in Japan

C-9

WAKAYAMA

C-13

18

Japan Prime Realty Investment Corporation

Properties Owned by JPR
Central Tokyo
A-1

OfficeCentral Tokyo

RetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex

A-9

Chuo Ward, Tokyo

Acquisition Price
Site Area

OfficeRetailJPR Ichigaya Bldg.

Court Ohsaki Mark West
A-10 Oval
Shinagawa Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price¥2,874 million

Site Area

679.06 m

Structure/Floors
Completed

Total Floor Space

4,351.46 m2
SRC B1/8F

March 1989

Acquisition Price
Site Area

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

Total Floor Space

14,995.09 m

Structure/Floors
Completed

CompletedFebruary 1993

Acquisition Price¥2,100 million

Site Area

A-5

Chiyoda Ward, Tokyo

Acquisition Price
Site Area

Structure/Floors
Completed

Acquisition Price
Site Area
Total Floor Space

5,152.98 m2

Structure/Floors

SRC B1/9F

Completed

October 1984

A-7

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

February 1988

Tokyo Tatemono Co., Ltd.

194,790.68 m2
SRC B1/9F

Acquisition Price
Site Area¥14,966 million
8,409.52 m2(entire redevelopment project)

Gotanda First Bldg.

78,796.00 m2

Structure/Floors

S/RC/SRC B4/30F

Completed

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

Shinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price

Structure/Floors

Property Manager¥4,000 million

Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed

Tokyo Tatemono Co., Ltd.

September 1999

Site Area

SRC/RC/S B2/13F

April 1985

Property Manager(entire redevelopment project)
Total Floor Space(including Trinity Shibaura site developedwith this property)
Total Floor Space

31,020.21 m2

SRC B2/14F

Center Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo

Property Manager

Tokyo Tatemono Co., Ltd.

Minato Ward, Tokyo

December 1989

25,733.10 m2

636.90 m2

2

MS Shibaura Bldg.

Completed

Chiyoda Ward, Tokyo

Property Manager

A-6

SRC/RC B1/8F

JPR Crest Takebashi Bldg.

¥2,420 million
657.80 m

Total Floor Space

Structure/Floors

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

4,117.70 m2¥15,121 million
3,522.46 m2

Total Floor Space

Property Manager

Property Manager

2

A-4

S/RC/SRC B2/13F

June 2001

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

550.06 m

Structure/Floors

S/SRC B2/17F

Tokyo Tatemono Co., Ltd.

2

Total Floor Space

28,575.80 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

Chuo Ward, Tokyo

Completed

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ningyo-cho Bldg.

Structure/Floors

SRC B1/9F

CompletedFebruary 1993

Total Floor Space

5,888.82 m2

Structure/Floors¥3,500 million
4,006.00 m2

2

Property Manager

A-3

Site Area

1,058.04 m

2

Total Floor Space

Acquisition Price¥5,100 million¥2,920 million
1,551.19 m

Acquisition Price
Site Area

Total Floor Space

Completed
Property Manager

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

Tokyo Tatemono Co., Ltd.

¥710 million
858.48 m2

2

Total Floor Space
Structure/Floors
Completed
Property Manager

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

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥21,000 million
14,917.11 m2
176,607.89 m

2Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

Tokyo Tatemono Co., Ltd.

20

Japan Prime Realty Investment Corporation

Properties Owned by JPR
Central Tokyo

OfficeCentral Tokyo

RetailAzabu Bldg.
A-15 Minami
Minato Ward, Tokyo

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo

Acquisition Price
Site Area¥3,760 million
778.09 m

Total Floor Space
Structure/Floors
Completed

Acquisition Price

June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Bldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo

Site Area¥2,800 million
716.95 m

Total Floor Space
Structure/Floors
Completed

Site Area

828.82 m

Total Floor Space

Total Floor Space

5,216.21 m2

Structure/Floors

Structure/Floors

S B1/8F

Completed

Completed

July 2008

SRC B3/7F
October 1991

Tokyo Tatemono Co., Ltd.

Nihonbashi-horidome Bldg.
A-20 JPR
Chuo Ward, Tokyo
Acquisition Price
Site Area

937.59 m

Total Floor Space
Structure/Floors
Completed

Acquisition Price

June 2002

Property Manager

Tokyo Tatemono Co., Ltd.

Sanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

Acquisition Price¥8,400 million

Site Area

1,205.07 m

Total Floor Space

6,466.94 m2

Structure/Floors

SRC B1/9F

Completed

March 1989

Acquisition Price
Site Area
Total Floor Space

Property Manager

Tokyo Tatemono Co., Ltd.

¥36,000 million
11,034.78 m2–

Structure/Floors
Completed
Property Manager

Total Floor Space–

Structure/Floors–

Completed– (Note)Acquisition Price

4,438.46 m2
S B1/9F
February 1999

Property Manager

Tokyo Tatemono Co., Ltd.

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

Square Garden
A-26 Tokyo
Chuo Ward, Tokyo¥5,750 million
643.13 m2

2

Financial City North Tower
A-28 Otemachi
Chiyoda Ward, Tokyo¥15,050 million

Site Area

S/RC B1/9F

July 1993

Kojimachi Bldg.
A-27 JPR
Chiyoda Ward, Tokyo

2,217.49 m2

2

7,190.82 m2

S/SRC B1/10F

Nomura Real Estate Partners Co., Ltd.

Tokyo Tatemono Co., Ltd.

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo¥5,100 million

11,419.93 m2

Property Manager

Property Manager

Site Area

4,205.09 m2¥4,220 million
1,915.50 m2

2

2

Property Manager

Total Floor Space

7,683.19 m2

Structure/Floors

S 8F

CompletedMay 2009

Property Manager

Tokyo Tatemono Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥3,400 million
1,119.27 m

Total Floor Space
Structure/Floors
Completed

2

Acquisition Price
Site Area

8,851.00 m2

Total Floor Space

SRC B2/9F

Structure/Floors

October 1982

Completed

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

21

Acquisition Price

Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition PriceCenter Bldg.
A-25 Shibadaimon
Minato Ward, Tokyo¥2,041 million

Site Area

S 9F

RetailOtemachi Tower (Land with Leasehold Interest)
A-23 The
Chiyoda Ward, Tokyo2

4,570.63 m2

OfficeProperty Manager¥2,660 million
5,289.01 m2
Acquisition Price

24,560.36 m2
S/SRC/RC B2/12F
February 1995

Nomura Real Estate Partners Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥18,400 million
8,124.72 m2
112,645.83 m2

Structure/Floors
Completed
Property Manager

S/SRC B4/24F

Site Area 

February 2013

Total Floor Space

Tokyo Tatemono Co., Ltd.

¥11,400 million
15,838.93 m2

Structure/Floors
Completed(including South Tower)

239,769.07 m2(including South Tower)

Property Manager

S/SRC B4/35F (Note 1)
October 2012
- (Note 2)(Note 1) B4/31F for the North Tower portion(Note 2) There is no property manager to which JPR directly consigns management of the property.

22

Japan Prime Realty Investment Corporation

Properties Owned by JPR
Central Tokyo
A-1

OfficeGreater Tokyo

RetailJPR Shibuya Tower Records Bldg.
Shibuya Ward, Tokyo

A-3

JPR Jingumae 432

B-1

Shibuya Ward, Tokyo

Acquisition Price

OfficeArca East

B-2

Sumida Ward, Tokyo

Acquisition Price¥4,275 million

Site Area

RetailSite Area

198.10 m

Structure/Floors

February 2006

Acquisition Price
Site Area

S/SRC B3/19F
March 1997

JPR Yokohama Nihon Odori Bldg.

Acquisition Price¥2,740 million

Site Area

2,578.69 m

Total Floor Space
Acquisition Price
Site Area¥12,000 million
1,010.47 m2

Total Floor Space

8,449.56 m

Structure/Floors
Completed

SRC/S B3/8F

CompletedFebruary 1992

Property Manager

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

24,617.65 m2

Acquisition Price
Site Area

Completed

B-6

Kawaguchi Center Bldg.

Acquisition Price¥10,100 million

1,821.67 m2

Completed

June 2008

Taito Ward, Tokyo

Acquisition Price
Site Area

28,420.85 m2

Structure/Floors

S/SRC B2/15F

CompletedFebruary 1994

Tachikawa Business Center Bldg.

October 1992

Rise Arena Bldg.
Toshima Ward, Tokyo
Acquisition Price

Acquisition Price
Site Area

281.59 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space23¥3,400 million
6,808.12 m2
71,957.65 m2

Structure/Floors
Completed

S/SRC B4/20F
October 2007

Property Manager

Prime Place Co., Ltd.

¥3,250 million

Structure/Floors
Completed

1,477.91 m2
S 9F
July 2015

Property Manager

Prime Place Co., Ltd.

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

Total Floor Space
Structure/Floors
Completed
Property Manager

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

Tokyo Tatemono Co., Ltd.

S/SRC B1/8F

Jones Lang LaSalle K.K.

B-9

Tachikawa City, Tokyo

8,490.44 m2

Property Manager

Nomura Real Estate Partners Co., Ltd.

B-8

¥3,250 million
1,242.97 m2

Total Floor Space

Property Manager

Prime Place Co., Ltd.

Chiyoda Ward, Tokyo

JPR Ueno East Bldg.

4,524.61 m

Structure/Floors

S 11F

FUNDES Suidobashi

August 1991

2

Total Floor Space

S/SRC B2/12F

Nomura Real Estate Partners Co., Ltd.

¥8,100 million

Site Area

7,781.93 m2

Property Manager

B-7

Kawaguchi City, Saitama

Property Manager

A-7

Completed

Tokyo Tatemono Co., Ltd.

230.11 m

Structure/Floors

Structure/Floors

October 1989

¥1,490 million
841.71 m2

Total Floor Space

Property Manager

2

Total Floor Space

Site Area

SRC B1/11F

Completed

January 2007

Chuo Ward, Tokyo

Acquisition Price

9,146.52 m2

Structure/Floors

S/SRC/RC B3/14F

JPR Ginza Namiki-dori Bldg.

Yokohama City, Kanagawa

1,100.59 m

Total Floor Space

Prime Place Co., Ltd.

A-6

Shinyokohama 2nd Center Bldg.

2

Property Manager

Prime Place Co., Ltd.

2A-5Structure/Floors

January 1991
Jones Lang LaSalle K.K.

¥2,927 million

2

S/SRC B1/13F

Property Manager

B-5

Yokohama City, Kanagawa

9,072.57 m2

Completed

Tokyo Tatemono Co., Ltd.

B-3

Shinjuku Ward, Tokyo

Structure/Floors

Property Manager

Jones Lang LaSalle K.K.

Shinjuku Sanchome East Bldg.

1,382.35 m2

Total Floor Space

34,281.86 m2

Completed

Property Manager

A-4¥2,350 million

Site Area

3,755.01 m

Total Floor Space

S/SRC B1/7F

Completed

Acquisition Price2

1,066.81 m2

Structure/Floors

Chiba City, Chiba¥5,880 million

2

Total Floor SpaceJPR Chiba Bldg.

Site Area ¥5,831 million
9,377.28 m2(entire redevelopment project)
Total Floor Space
91,280.94 m2(including residential tower)
Structure/Floors RC/SRC/S B3/42F(including residential tower) (Note)
Completed

January 2007

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

(Note) The office building has 15 floors above
ground and 2 floors underground.

24

Japan Prime Realty Investment Corporation

Properties Owned by JPR
Greater Tokyo

OfficeGreater Tokyo

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

Tower
B-11 Olinas
Sumida Ward, Tokyo

B-1

OfficeRetailTanashi ASTA

B-3

Nishitokyo City, Tokyo

Cupo-la Main Bldg.
Kawaguchi City, Saitama
Acquisition Price
Site Area¥2,100 million
15,008.28 m2(entire redevelopment project)
Total Floor Space

48,321.96 m2

Structure/Floors
Completed

S/RC/SRC B2/10F
January 2006

Property Manager

Prime Place Co., Ltd.

B-4

JPR Musashikosugi Bldg.
Kawasaki City, Kanagawa

Acquisition Price
Site Area

Acquisition Price
Acquisition Price
Site Area
Total Floor Space

¥6,510 million
12,011.00 m2
185,974.87 m

Structure/Floors
Completed

S/SRC/RC B3/27F
March 1997

Property Manager

Tokyo Tatemono Co., Ltd.

2

Yokohama Bldg.
B-12 JPR
Yokohama City, Kanagawa

Site Area¥31,300 million

27,335.29 m2 (entire site area)

Total Floor Space

257,842.41 m2(includes commercial tower and residential tower)

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

CompletedFebruary 2006

Property Manager

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area

B-5¥10,200 million
12,326.30 m2

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

Bldg.
B-14 Sencity
Chiba City, Chiba

80,675.27 m

Structure/Floors

Site Area

February 1995

Total Floor Space
Structure/Floors


Total Floor Space

8,317.99 m2
28,930.36 m2

CompletedProperty Manager

S B1/4F

Structure/Floors

8,772.51 m2
SRC B1/9F

Nomura Real Estate Retail
Properties Co., Ltd. (Note),
Prime Place Co., Ltd.

Tokyo Tatemono Co., Ltd.

(Note) T he company changed its name from
Geo-Akamatsu Co., Ltd. as of October 1, 2020.

Property Manager

Prime East
B-13 Omiya
Saitama City, SaitamaB-7
Acquisition Price
Site Area

2,268.09 m

Total Floor Space
Structure/Floors
Completed
Property Manager

Site Area

S 9F
February 2009

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area¥13,870 million
20,054.15 m2(entire redevelopment project)
Total Floor Space

158,663.55 m2(entire redevelopment project)

Structure/Floors
Completed

April 1993

Structure/Floors
Completed

2,235.60 m2
S B1/10F
July 2017

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

¥3,800 million
383.74 m2

Total Floor Space

S/SRC B2/23F

Kawasaki City, Kanagawa

Taito Ward, Tokyo2

9,203.98 m2

Kawasaki Dice Bldg.

FUNDES Ueno

Acquisition Price¥6,090 million

March 1983

October 2005

May 1981

Completed25¥4,335 million

SRC/RC/S B1/6F

Prime Place Co., Ltd.

B-6

Site Area

18,394.32 m2

Property Manager

Prime Place Co., Ltd.

Saitama City, Saitama

1,110.28 m2

Completed

Property Manager
2

Musashiurawa Shopping Square¥7,000 million

Structure/Floors

SRC B2/17F

Completed

Acquisition Price
Acquisition Price

4,757.09 m2

Total Floor Space

Structure/Floors¥7,254 million

Property Manager

Prime Place Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥15,080 million
4,475.45 m2
36,902.01 m

2Structure/Floors
Completed

S/SRC/RC B2/11F
August 2003

Property Manager

Tokyo Tatemono Co., Ltd.

26

Japan Prime Realty Investment Corporation

Properties Owned by JPR
Other Cities
C-1

OfficeOther Cities

RetailNiigata Ekinan Center Bldg.

C-4

Niigata City, Niigata

Acquisition Price
Site Area

Structure/Floors
Completed

Acquisition Price
Site Area
Total Floor Space

19,950.42 m2

Structure/Floors

S/SRC B1/10F

Completed

March 1996

Acquisition Price
Site Area

Structure/Floors

Site Area
Total Floor Space

S/RC B1/12F

Structure/Floors

June 1985
expansion in November 2003

Completed

Property Manager

Site Area

Structure/Floors
Completed

Acquisition Price
Site Area
Total Floor Space
Structure/Floors

SRC B1/12F

Completed

December 1997

Property Manager

Structure/Floors

SRC/S 12F

Completed

October 1991

Site Area¥2,810 million
1,164.39 m

Total Floor Space
Structure/Floors
Completed
Property Manager

Site Area

8,690.95 m2
S/SRC 13F
July 2000

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Acquisition Price¥1,670 million

Site Area
Total Floor Space

6,715.07 m2

Structure/Floors

S 9F

Completed

July 1996¥2,140 million
668.11 m

Structure/Floors
Completed
Property Manager

5,696.01 m2
SRC B2/9F
October 1993

Tokyo Tatemono Co., Ltd.

Site Area¥10,996 million
4,486.44 m2

Total Floor Space

22,286.35 m

Structure/Floors
Completed

C-1

Tokyo Tatemono Co., Ltd.

Osaka City, Osaka

Acquisition Price
Site Area

1,405.74 m

Total Floor Space

7,738.47 m2

Structure/Floors

SRC B1/8F

Completed

September 1986

Acquisition Price
Site Area

Structure/Floors
Completed
Property Manager

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

Nomura Real Estate Partners Co., Ltd.

SRC B1/8F
April 1990

Osaka City, Osaka

Acquisition Price
Site Area

3,994.47 m

17,897.56 m2

JPR Chayamachi Bldg.

2

Total Floor Space

3,518.68 m2

Nomura Real Estate Partners Co., Ltd.

C-5

¥7,220 million¥13,000 million

Property Manager

Nomura Real Estate Partners Co., Ltd.

Kobe City, Hyogo

January 2009

JPR Umeda Loft Bldg.

¥3,750 million

Housing Design Center Kobe

SRC 14F

Property Manager

2

Property Manager

2

Total Floor Space

Acquisition Price

2

C-4

2

S B2/10F

Property Manager

Nomura Real Estate Partners Co., Ltd.

Acquisition Price

5,303.98 m2

Shinsaibashi West
C-22 JPR
Osaka City, Osaka

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price¥5,430 million

February 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

27

5,780.71 m2

2

10,783.52 m2

March 1991

609.31 m2

Total Floor Space

1,128.45 m

2

121 Bldg.
C-14 Tenjin
Fukuoka City, Fukuoka

Site Area

959.87 m2

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama

1,895.67 m

Total Floor Space

¥1,560 million

Tokyo Tatemono Co., Ltd.

¥3,150 million

SRC B1/9F

Tokyo Tatemono Co., Ltd.

Property Manager

Tokyo Tatemono Co., Ltd.

10,201.44 m2

Property Manager

Acquisition Price
Acquisition Price

9,828.73 m2¥4,137 million

Shinsaibashi Bldg.
C-21 JPR
Osaka City, Osaka

Completed

Acquisition Price

CompletedFebruary 1970

Naha City, Okinawa

2

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

SRC B3/9F

JPR Naha Bldg.

¥1,885 million
1,214.63 m

Total Floor Space

Structure/Floors

Tokyo Tatemono Co., Ltd.

C-9

Fukuoka City, Fukuoka

14,619.52 m2

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka

1,610.38 m2

Total Floor Space

Property Manager

Jones Lang LaSalle K.K.

JPR Hakata Bldg.

Site Area

2

Property Manager

C-7

Acquisition Price¥4,150 million
1,432.64 m

2RetailNagoya Fushimi Bldg.
C-19 JPR
Nagoya City, Aichi

Osaka City, Osaka¥2,140 million
2,706.99 m

Total Floor SpaceTokyo Tatemono Honmachi Bldg.

OfficeTotal Floor Space
Structure/Floors
Completed¥6,000 million
592.45 m2
3,219.36 m2
S/SRC 9F
June 1994

Property Manager

Nomura Real Estate Partners Co., Ltd.

28

Japan Prime Realty Investment Corporation

Structure and History of JPR

Overview of Asset Manager

The Objective and Basic Characteristics of JPR

Overview

With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties (urban retailproperties) located in thriving commercial areas, hotels (urban accommodation facilities) (urban retail properties
and urban accommodation facilities referred together as “urban retail properties, etc.”) and urban multi-use
facilities, and the land on which these buildings are located. In addition, in light of the returns and risks of theseinvestment targets, JPR shall make it a basic policy to invest not only in Tokyo, but also strive to diversify into otherregional cities so as to maximize the advantages of portfolio management.

Corporate History

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

Shareholder
Composition(Shareholding ratio)

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

Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporations¥350 million
Tokyo Tatemono Co., Ltd. (75%)
Yasuda Real Estate Co., Ltd. (10%)
Taisei Corporation (10%)
Meiji Yasuda Life Insurance Company (5%)

Corporate History

April 28, 2000
October 13, 2000

June 20, 2001

Description

September 14, 2001

Capitalization

March 16, 2001

Date

September 6, 2001

Name
Business Description

September 30, 2007
November 28, 2007

EstablishedObtained license as real estate transaction agent (currently: No. (5) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act (Approval
Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts and Investment
Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note)
Applied for registration and submitted application form for financial instruments exchange business(Note) Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006)

Organization Chart

Structure of JPR

Shareholders’ Meeting
Auditors

75%

10%

10%

5%

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Meiji Yasuda Life Insurance

Board of Directors

Equity Investment
Asset Manager

General Tenant Services Agent /Construction Management Agent /Property Transfer AgentTokyo Realty Investment
Management, Inc.

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

Investment Corporation

Property

Loans / Issue
of Investment
Corporation
Bonds
Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

29

Investment Management
Division

Corporate Planning /Administration Division

Financial Division

Research Group

Japan Prime Realty
Investment Corporation

Asset
Management

Compliance Committee(Compliance Subcommittee)
Compliance Office

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant AgentsPresident & CEO
Investment Committee(Investment Subcommittee /Fund Management Subcommittee)

CashDistribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Investment
Group

Lender / Investment
Corporation Bond Investor
Unitholders
Transaction
Unitholders

Asset
Asset
Asset
Asset
Management Management Management Engineering
1 Group
2 Group
3 GroupGroup

Sustainability
Group

FinancialGroup

IR Group

FundManagement
and Accounting
Group

Planning
Group

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

30

Asset Management ReportJapan Prime Realty Investment Corporation

1. Overview of Asset Management(1) Changes in Operating Results and Other Management Data

Operating Revenue
Rent revenue – real estate

Million yen

34th Fiscal
Period(Jul. 1, 2018 Dec. 31, 2018)
15,652Million yen

15,652

15,69516,005

16,363

16,714Gain on sale of real estate

Million yen

–

405

–

–

414

Million yen

8,066

8,147

8,320

8,350

8,596

Million yen

7,311

7,349

7,538

7,436

7,611

Million yen

7,586

7,954

7,684

8,013

8,533

Million yen

6,761

7,216

6,915

7,277

7,840

Million yen

6,760

7,216

6,914

7,276

7,839

Million yen

447,157

452,366

453,467

473,186

484,573

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance

Fiscal Period

Operating Expenses
Expenses related to rent business
Operating Income
Ordinary Income
Net Income
Total Assets(Period-on-period variation)
Interest-bearing Debts
Total Unitholders Equity(Period-on-period variation)
Unitholders' Capital
Total Cash Distributions
Dividend payout ratio
Number of Units Outstanding
Total Unitholders' Equity per unit
Cash Distribution per Unit
Distribution amountExceeding profit distribution amount
Ordinary Income on Total Assets (Note 1)
Annualized (Note 10)
Net Income on Total Unitholders'Equity (Note 2)
Annualized (Note 10)
Total unitholders' equity at
beginning of period
Unitholders' Equity Ratio at End of
Period (Note 3)(Period-on-period variation)
Interest-bearing Debts to Total Assets at
End of Period (Note 4)
DSCR (Note 5)
Net income before interest andamortization (Note 6)
Interest expenses
NOI from Leasing (Note 7)
Annualized NOI yield(Notes 9 and 10)
NCF from Leasing (Note 8)
Annualized NCF yield(Notes 9 and 10)
Investment Properties Owned (Note 11)
Number of Tenants
Total Leasable Floor Space (Note 12)
Occupancy Rate

Unit

%

35th Fiscal
Period(Jan. 1, 2019 Jun. 30, 2019)16,10136th Fiscal
Period(Jul. 1, 2019 Dec. 31, 2019)
16,00537th Fiscal
Period(Jan. 1, 2020 Jun. 30, 2020)
16,36338th Fiscal
Period(Jul. 1, 2020 Dec. 31, 2020)
17,129(+0.2)(+1.2)(+0.2)(+4.3)(+2.4)

Million yen

181,020

185,020

185,020

187,020

196,520

Million yen

238,712239,166

239,269

255,838

256,399(+0.0)(+0.2)(+0.0)(+6.9)(+0.2)

Million yen

231,653

231,653

231,653

247,860

247,860

Million yen

6,761

6,811

6,916

7,277

7,426

%

100.0

94.3

100.0

100.0

94.7

Units

923,000

923,000

923,000

958,250

958,250

Yen

258,626

259,118

259,230

266,984

267,570

Yen

7,326

7,380

7,493

7,595

7,750

Yen

7,326

7,380

7,493

7,595

7,750

%

Yen

–

–

–

–

–

%

1.5

1.6

1.5

1.6

1.6

%

3.0

3.2

3.0

3.2

3.2

%

2.8

3.0

2.9

2.9

3.1

%

5.6

6.1

5.7

5.9

6.1

238,638

238,712239,166

239,269

255,838

53.4

52.9

52.8

54.1

52.9

(-0.1)(-0.5)(-0.1)(+1.3)(-1.2)

%

40.5

40.9

40.8

39.5

40.6

Times

12.0

12.5

13.2

14.1

14.6

Million yen

9,500

9,536

9,620

10,015

10,208Million yen

794

760

731

710

697

Million yen

10,285

10,311

10,441

10,954

11,188

%

4.7

4.7

4.7

4.8

4.7

Million yen

9,158

8,986

8,858

9,574

9,534

%

4.2

4.1

4.0

4.2

4.0

Million yen

%

62

63

63

65

66

747

757

760

851

857

m2

478,088.25

480,277.86

480,284.17

499,269.77

501,162.78

%

99.2

98.6

99.6

99.7

99.3

(Note 9) Annualized NOI from leasing / property acquisition price (34th fiscal period: ¥435.05 billion, 35th fiscal period: ¥444.77 billion, 36th fiscal period: ¥439.52 billion,
37th fiscal period: ¥457.14 billion and 38th fiscal period:¥468.54 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 34th fiscal period: 184 days, 35th fiscal period: 181 days,
36th fiscal period: 184 days, 37th fiscal period: 182 days and 38th fiscal period: 184 days.
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

(2) 38th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 958,250 units as of the end of the 38th fiscal period (December 31, 2020). JPR has assigned the asset management of its
portfolio to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize
unitholder value by efficiently managing the portfolio primarily comprising office properties and retail properties.
2) Management Environment
Looking at the Japanese economy in the 38th fiscal period, corporate earnings continued to drop sharply under the influence of thenovel coronavirus infection (COVID-19), with employment also drifting on a weak note. Although exports increased andproduction showed a pickup, the domestic economy still remained in a difficult situation. The overseas economy also stayed in asevere situation due to the impact of COVID-19. With the COVID-19 infections expanding both in and outside Japan toward theend of the fiscal period under review, there are concerns about its negative impact on the economy.
The Office Property Leasing Market
The occupancy rate has been kept at a low level in the office property leasing market. Close attention must be paid, however, as
the figure is rising for the moment due to the impact of COVID-19.
The Retail Property Leasing Market
Although a pickup was seen to take place gradually at urban retail properties which JPR targets for investment, the spread of
COVID-19 infections expanded toward the end of the 38th fiscal period, causing concerns about negative impact mainly on
restaurants and eateries.
The For-Sale Real Estate Market
In the for-sale real estate market, active transactions continued to take place against the backdrop of the recovery in the stock priceand low interest rates, etc. Although investors’ expected cap rate reflects their cautious attitude in some areas for hotels and urban
retail properties that have been hard hit by COVID-19, blue-chip properties in which JPR targets to invest are still in short supply
and, as investors both in and outside Japan show strong appetite to acquire them, low-yield transactions continue to prevail and theacquisition 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.
3) Portfolio Management Status
Acquisition of New Properties and Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus office properties in regional cities andretail properties, etc., with the primary aim of improving the quality of the portfolio and achieving stable growth of earnings while
giving attention to balancing diversification of the portfolio, both in terms of location and asset type.
During the 38th fiscal period, JPR acquired Otemachi Financial City North Tower (acquisition price: 11,400 million yen) and sold
35% ownership interest of JPR Hakata Bldg. (sale price of the relevant ownership interest: 1,430 million yen), both in December
2020. Consequently, as of the end of December 2020, the balance of JPR’s assets under management totaled 66 properties, or 467.5
billion yen on an acquisition price basis, with the total leasable floor space standing at 501,162 m2 and the number of tenants at
857.

(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debts at end of period / total assets at end of period x 100(Note 5) Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Income before income taxes - gain on sale of real estate + loss on sale of real estate + extraordinary loss + interest expenses (including interest expenses oninvestment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures

3130

3132

Asset Management ReportJapan Prime Realty Investment Corporation

Operational Management of Portfolio
In the office property leasing market in the 38th fiscal period, it was required to pay close attention to the impact of COVID-19, as
stated in the Management Environment above. Under such circumstances, JPR endeavored to attract new tenants through strategicleasing activities and enhance the satisfaction of existing tenants by keeping close cooperation with property managementcompanies and brokers, with an aim of securing stable earnings from the entire portfolio and its occupancy rate. As a result of these
efforts, the occupancy rate at the end of the 38th fiscal period was kept at a high level, although it decreased 0.4 points period-onperiod to 99.3%.
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 feelsatisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning systems andreplacement of lighting equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple properties.
Moreover, as its initiatives on environmental issues, JPR has continuously obtained environmental certifications. As of December
31, 2020, JPR acquired the DBJ Green Building Certification *1 for 14 properties and the CASBEE for Building Certification *2 for
16 properties (including 6 newly certified properties). In addition, JPR acquired BELS *3 certification for one of its properties. On
top of these certifications JPR acquired, its endeavors on environmental issues were so acknowledged that it was designated as“Green Star” in the GRESB*4 Real Estate Assessment for 2020, marking the seventh consecutive year of recognition with thehighest ranking in the survey. JPR was also granted a higher rank of “5 Stars” in the GRESB Rating, which makes relative
assessment based on total scores, for two consecutive years.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on thescoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate
disaster and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental
performance of buildings. Efforts to develop and popularize the system in Japan are being made under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.
*3 BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performance labeling system created for the purpose that a third-party(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date

Number of Units
Outstanding

Event

Variation

Balance

Additional public offering

47,600920,600

20,237

230,632(Note 1)

Third-party allotment

2,400

923,000

1,020

231,653(Note 2)

March 3, 2020

Additional public offering

35,250958,250

16,207

247,860(Note 3)(Note 1) 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 specificassets and partly repay debts.
(Note 2) New investment units were issued through a third-party allotment at 425,152 yen per unit to fund acquisition of new specific assets and partly repay debts.
(Note 3) New investment units were issued through a public offering at 474,810 yen per unit (underwriting price of 459,790 yen per unit) to fund acquisition of new specified
assets and partly repay debt.

(4) Cash Distributions
With regard to the cash distributions of the 38th fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 37th fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. JPR alsodecided to internally reserve 414 million yen as reserve for reduction entry from the unappropriated retained earnings, in applicationof the Special Provisions for Taxation in Cases of Repurchase of Specified Assets (Article 65-7 of the Act on Special Measures
Concerning Taxation). As a result, the cash distribution per unit came to 7,750 yen for the 38th fiscal period.
(Thousands of yen unless otherwise indicated)
34th Fiscal
Period35th Fiscal
Period36th Fiscal
Period37th Fiscal
Period38th Fiscal
Period(Jul. 1, 2018 –Dec. 31, 2018)(Jan. 1, 2019 Jun. 30, 2019)(Jul. 1, 2019 Dec. 31, 2019)(Jan. 1, 2020 –Jun. 30, 2020)(Jul. 1, 2020 Dec. 31, 2020)

6,774,889

7,229,214

6,926,967

7,287,774

7,849,585

12,991

417,474

10,928

9,865

423,148

Total Cash Distributions

6,761,898

6,811,740

6,916,039

7,277,908

7,426,437(Cash Distribution per Unit)(7,326 yen)

(7,380 yen)

(7,493 yen)

(7,595 yen)

(7,750 yen)

Total Cash Distributions from Net Income

6,761,898

6,811,740

6,916,039

7,277,908

7,426,437(Cash distribution from net income per unit)(7,326 yen)

(7,380 yen)

(7,493 yen)

(7,595 yen)

(7,750 yen)

*4 GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) awareness of real estate companies and funds, as well as
the name of organization which runs the assessment system. It was founded in 2009 primarily by major European pension fund groups. Of the survey subjects,

Fiscal Period

GRESB Real Estate Assessment covers real estate companies and funds that are mainly engaged in managing existing properties.

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 the 38th fiscal period.
Details of Corporate Credit Ratings as of December 31, 2020
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

S & P Global Ratings Japan Inc.

Long-term: A (Stable)
Short-term: A-1

Unappropriated Retained Earnings at End of Period
Internal Reserves

Breakdown

As of the end of the 38th fiscal period, the balance of interest-bearing debts totaled 196.5 billion yen, with balance of borrowingsof 164.0 billion yen and balance of investment corporation bonds of 32.5 billion yen. The ratio of interest-bearing debt to total
assets (Note 1) was 40.6%, long-term and fixed interest-bearing debt ratio (Note 2) was 96.9%, average debt cost (Note 3) was
0.76% and average maturity (Note 4) was 4.6 years as of the end of the fiscal period.

Remarks

BalanceFebruary 14, 2017

Guidelines on Energy Efficiency Performance of Non-residential Buildings (2013) established by the Ministry of Land, Infrastructure, Transport and Tourism.

JPR borrowed 20.5 billion yen to fund the refinance of interest-bearing debts that matured during the 38th fiscal period and theacquisition of a property. The average maturity of and the average interest on the new interest-bearing debts (excluding short-term
debts) stood at 9.2 years and 0.54%, respectively, in contrast to 6.8 years and 0.96% for the relevant interest-bearing debts before
refinancing.

Variation

January 24, 2017

organization accurately conducts the evaluation and indication of energy efficiency performance of non-residential buildings in accordance with the Assessment

Fund Procurement
JPR endeavors on debt financing with an emphasis placed on lengthening the debt maturity and diversifying repayment dates, inan effort to make its financial base more solid and stronger against the backdrop of the favorable fund procurement environment
and low interest rates.

Unitholders' Capital(millions of yen)

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)

–

–

–

–

–

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

–

–

–

–

–

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

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporationbond management expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 37th fiscal period to the repayment deadlines for all
interest-bearing debts based on the balance of each interest-bearing debt.

3332

3334

Asset Management ReportJapan Prime Realty Investment Corporation(5) Future Management Policies and Vital Issues(6) Information Disclosure

Looking ahead, with the economy both in and outside Japan still remaining in a severe situation, attention should be paid to the COVID19 trends, including the Japanese government again declaring a state of emergency, and the impacts of fluctuations in the financial andcapital markets, among other factors.

Positioning the proactive voluntary disclosure of information as one of its key management policies, JPR voluntarily discloses
information believed to be useful to investment decisions, along with the information disclosure required by the Tokyo Stock Exchange
and set forth by laws and regulations, etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide information including monthly occupancy rates of all properties in the portfolio and historical
data, offer expanded information on sustainability and deliver video presentation on financial results sessions for securities analysts.

In the office property leasing market, although leasing of newly-constructed buildings supplied in 2020 remained steady, the impact of
the spread of COVID-19 is expected to linger for a long time, raising concerns about the influence it will give on the office market
conditions. In this regard, JPR is resolved to continue its endeavors to enhance the competitiveness of its owned properties, as it has
focused on improving tenant satisfaction through proactive implementation of value enhancement works and provision of elaborate
management services.
In the for-sale real estate market, it has become even more important to discern the growth potential in earnings of respective properties,
while continuously taking into account the impact of COVID-19 on the leasing market. Although the downward trend of cap rates thathas continued to date is coming to a stop, the low interest rate and low yield environment will be maintained, in which it is required tofirmly keep the attitude of vigorously selective investment for implementing real estate investment that assumes possession ofproperties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve the quality of its portfolio
and enhance its growth potential and stability over the long term. In the for-sale office property market, the purchase cap rate andexpected cap rate levels still stay low, with properties remaining in short supply. Going forward, although close attention must
continuously be paid to the impact of COVID-19, etc., JPR will fully investigate the stability and growth potential of candidate
properties when acquiring them. As for retail properties, etc., JPR will work to invest in strictly selected blue-chip properties thatcan keep stable revenues at a certain level in order to complement the stability of earnings from the entire portfolio. In doing so,
JPR will have to make more prudent investigations, paying close attention to the sales trends, etc. of such properties under the
influence of the spread of COVID-19. JPR will continue its endeavors to acquire new properties under reasonable terms bynegotiating prices based on detailed market studies and property due diligence.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of TRIM (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation and Meiji Yasuda Life Insurance
Company), accurately following market trends and carefully researching investment value, including the future potential ofcandidate properties.
Furthermore, JPR will also investigate asset replacement by taking into consideration the timing of implementation, in order toimprove the quality of its portfolio and enhance its growth potential over a long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions in consideration of the current leasing market situations and promote rapid decision making- Conduct strategic value enhancement works with intent to improve property earnings and increase tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

3534(7) Significant Subsequent Events
Issuance of unsecured investment corporation bonds
Based on the comprehensive resolution concerning the issuance of investment corporation bonds made at its Board of Directors
meeting held on April 23, 2020, JPR decided on March 5, 2021 to issue bonds as described below. The payment completed on
March 16, 2021.
Name of the investment
corporation bonds
Total amount of the investment
corporation bonds
Interest rate

Japan Prime Realty Investment Corporation 26th Series of Unsecured Investment
Corporation Bonds(with special pari passu conditions among specified investment corporation bonds)
3.0 billion yen

Subscription period

March 5, 2021

0.760% per annum

Payment date

March 16, 2021

100 yen per 100 yen of theinvestment corporation
bonds
The total amount of the bonds will be redeemed on March 14, 2036. The bonds may be
repurchased and cancelled at the option of JPR at any time on and after the day following
the payment date, unless otherwise determined by the book-entry transfer agent.
Unsecured andunguaranteed

Collateral
Redemption method and date
Use of funds

Purchase pricePartial early repayment of short-term loans payable<Reference Information>
Property Sale
JPR concluded a sale agreement regarding the following property on December 22, 2020.
<JPR Hakata Bldg. (65.0% co-ownership interest) >Asset type:
Sale price:
Contract date:
Delivery date:
Buyer:
Impact on operating results:

Beneficiary interest
2,665 million yen
December 22, 2020
March 29, 2021 (planned)
Tokyo Tatemono Co., Ltd.
JPR plans to record approximately 784 million yen in gain on sale of real estate as operating
revenue for the 39th fiscal period ending June 2021 (January 1, 2021 – June 30, 2021).

2. Overview of the Investment Corporation(1) Unitholders’ Capital
34th Fiscal
Period as ofDecember 31, 2018
5,000,000

35th Fiscal
Period as ofJune 30, 2019
5,000,000

36th Fiscal
Period as ofDecember 31, 2019
5,000,000

37th Fiscal
Period as ofJune 30, 2020
5,000,000

38th Fiscal
Period as ofDecember 31, 2020
5,000,000

Total number of units issued andoutstanding

923,000

923,000

923,000

958,250

958,250

Unitholders' capital (millions of yen)

231,653

231,653

231,653

247,860

247,860

Total number of unitholders

11,05010,376

9,841

11,085

10,946

Total number of authorized units

3536

Asset Management ReportJapan Prime Realty Investment Corporation(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 38th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12 Harumi, Chuo-ku, Tokyo

238,062

24.84

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

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

147,160

15.35

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

42,363

4.42

The Nomura Trust and Banking Co., Ltd. (Investment
Trust Account)
Custody Bank of Japan, Ltd. (Securities Investment
Trust Account)

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

37th Fiscal Period(as of June 30, 2020)

38th Fiscal Period(as of December 31, 2020)

Central Tokyo

Assets owned by JPR(thousands of yen)
86,819,253

Percentage of total
assets (%)
18.3

Assets owned by JPR(thousands of yen)
98,288,046

Percentage of total
assets (%)
20.3

Greater Tokyo

73,502,522

15.5

73,476,558

15.2

Other Cities

19,931,527

4.2

19,900,135

4.1

Central Tokyo

155,957,161

33.0

155,950,245

32.2

Greater Tokyo

49,682,380

10.5

49,471,060

10.2

Other Cities

45,732,351

9.7

44,672,408

9.2

8.8
(–)

42,815,071
(–)

8.8
(–)

100.0
(91.2)

484,573,526(441,758,455)

100.0(91.2)

1-8-12 Harumi, Chuo-ku, Tokyo

33,021

3.44

Tokyo Tatemono Co., Ltd.

1-4-16 Yaesu, Chuo-ku, Tokyo

29,3003.05

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.60

Meiji Yasuda Life Insurance Company

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

24,0002.50

SSBTC CLIENT OMNIBUS ACCOUNT (Standing
proxy: Custody Services Department, Tokyo Branch,
The Hongkong and Shanghai Banking Corporation
Limited)One Lincoln Street, Boston, MA 02111, U.S.A.
(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

Japan Securities Finance Co., Ltd.

1-2-10 Nihonbashi-Kayabacho, Chuo-ku,
Tokyo12,9801.35

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

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

11,5191.20(2) Major Assets Owned by JPR

578,635

60.38

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 38th fiscal period.

1.58

Percentage of total units outstanding is rounded down to the second decimal place.

(3) Items Related to Directors

Executive Officer

Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

Name
Yoshihiro Jozaki–

Total assets–

473,186,809(431,625,198)(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheets as of the end of the fiscal periods (book values after depreciation for real estate(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

Occupancy Rate(%)

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

Asset Class

11,034.78

100.0

11.4

Office23,987.40

23,987.40

100.0

6.1

Office8,865.71

8,688.66

98.0

3.2

Office18,414,651

5,971.73

5,971.73

100.0

2.6

OfficeBYGS Shinjuku Bldg.

15,276,000

15,227.80

14,966.94

98.3

3.7

OfficeJPR Sendagaya Bldg.

14,743,045

6,177.74

6,177.74

100.0

1.8

OfficeKanematsu Bldg.

14,573,705

8,090.42

8,090.42

100.0

2.5

OfficeSencity Bldg.

13,965,858

13,271.20

13,271.20

100.0

2.9

OfficeShinjuku Square Tower

13,051,449

19,266.38

18,781.48

97.5

2.7

OfficeKawasaki Dice Bldg.

13,002,603

12,106.71

12,106.71

100.0

2.6

Retail, etc.

189,774,060

123,999.87

123,077.06

99.3

39.4

Book Value(thousands of yen)

Leasable Floor
Space (m2)Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

Olinas Tower

26,247,942

Shinjuku Center Bldg.

22,110,542

Tokyo Square Garden

Property Name

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 38th fiscal period are as follows.
Position

Deposits and other assets

41,561,611(–)

and real estate in trust).

Total(Note)

15,230Real estate in trust

Other Current Assignments

Total Directors' Fee
during the 38th Fiscal
Period (thousands of yen)

President and Chief Executive Officer, Tokyo Realty
Investment Management, Inc.

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

Group Representative Partner of GYOSEI Certified
Public Tax & Accountants' Co.
Representative, Nobuhisa Kusanagi Certified Public
Accountant Office

EY ShinNihon LLC–– (Note 3)

Numberof Owned
Units
–
–

4,200

16,500––(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements and fees regarding preparation of comfort letters for issuanceof investment corporation bonds.

Total

Leased Floor
Space (m2)(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., Tokyo Square Garden, Sencity Bldg., Shinjuku Square Tower 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 fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, theleasable floor space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

(Note 3) Yoshihiro Jozaki, Executive Officer, does not receive any compensation from JPR.

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

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 38th fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation bonds)

Mizuho Bank, Ltd.

3736

3738

Asset Management ReportJapan Prime Realty Investment Corporation(3) Itemized Portfolio Assets

Kanematsu Bldg.

14-1 Kyobashi 2-chome, Chuo-ku, Tokyo

Kanematsu Bldg. Annex

17-5 Kyobashi 2-chome, Chuo-ku, Tokyo

JPR Ningyo-cho Bldg.

17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo

Shin-Kojimachi Bldg.

3-3 Kojimachi 4-chome, Chiyoda-ku, TokyoJPR Crest Takebashi Bldg.

21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, TokyoMS Shibaura Bldg.

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

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

Retail, etc.

2,406,533

3,520,000

2,130,166

2,900,000

2,415,757

4,270,000

3,206,536

3,780,000

10,855,231

15,300,000

2,993,967

4,170,000

Niigata Ekinan Center Bldg.

5,292,146

4,850,000

Tokyo Tatemono Honmachi Bldg.

2,752,803

5,430,000

JPR Hakata Bldg.

13,051,449

14,700,000

JPR Naha Bldg.

15,276,000

20,000,000

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno

Sompo Japan Sendai Bldg.

1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa
3-1 Bessho 7-chome, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
2-4 Ueno 7-chome, Taito-ku, Tokyo
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka
11-28 Minamisemba 4 chome, Chuo-ku,
OsakaReal estate

22,110,542

17,900,000

Real estate

3,794,937

3,160,000

Shinagawa Canal Bldg.

Real estate

1,881,579

2,410,000

Rokubancho Bldg.

2-9, etc., Rokubancho, Chiyoda-ku, Tokyo

2,901,232

3,500,000

JPR Harajuku Bldg.

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Real estate

8,782,636

10,500,000

4,854,471

6,840,000

14,743,045

11,900,000

3,681,343

3,690,000

JPR Shinsaibashi West38,388,259

51,800,000

JPR Umeda Loft Bldg.

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

Housing Design Center Kobe

2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo

Minami Azabu Bldg.

JPR Sendagaya Bldg.

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

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

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

Science Plaza-Yonbancho Plaza

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

Shibadaimon Center Bldg.

10-11 Shibadaimon 1-chome, Minato-ku,
Tokyo
1-1 Kyobashi 3-chome, Chuo-ku, Tokyo

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

2,775,212
4,175,284
18,414,651

3,310,000
6,180,000
21,300,000

JPR Kojimachi Bldg.

6-1 Kojimachi 5-chome, Chiyoda-ku, Tokyo

Real estate

5,817,696

6,440,000

Otemachi Financial City North Tower

9-5, Otemachi 1-chome, Chiyoda-ku, Tokyo

Real estate

11,536,698

11,900,000

JPR Shibuya Tower Records Bldg.

22-14 Jinnan 1-chome, Shibuya-ku, Tokyo

11,425,636

14,100,000

JPR Jingumae 432

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

4,266,535

4,250,000

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.

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

Beneficiaryinterest
Beneficiaryinterest
Real estate

2,551,837

2,710,000

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

Real estate

3,278,071

3,260,000

5-14 Ginza 5-chome, Chuo-ku, Tokyo
20-8 Kanda Misakicho 2-chome, Chiyoda-ku,
TokyoReal estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

10,145,250

11,000,000

3,189,258

3,480,000

4,194,598

6,930,000

2,190,362

1,820,000

2,369,771

2,340,000

1,409,999

2,350,000

7,277,734

10,000,000

3-5 Matsugaya 1-chome, Taito-ku, Tokyo

Real estate

2,898,989

5,400,000

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

Beneficiaryinterest

2,883,259

4,470,000

Real estate

5,122,389

9,890,000

Real estate

5,236,821

7,220,000

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.
Rise Arena Bldg.
Yume-ooka Office Tower

2-1 Kinshi 3-chome, Sumida-ku, Tokyo
1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba
17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama

Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.

Retail, etc.

Shinjuku Center Bldg.

Office779,000

JPR Nihonbashi-horidome Bldg.

Office14,900,000

Other Cities

OfficeCentral Tokyo

Sencity Bldg.

14,573,705

569,809

FUNDES Suidobashi

Greater Tokyo

Omiya Prime East

1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1000, etc., Shinmachi, Chuo-ku, Chiba-shi,
Chiba,

Real estateTokyo Square Garden

38

8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

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

JPR Yokohama Bldg.

Location

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

Across Shinkawa Bldg. Annex

39

Location

OfficeProperty Name

Property Name
Olinas Tower

Retail, etc.

Area TypeForm ofOwnership

Appraisal ValueBook Valueas of December 31,
as of December 31,
2020
2020
(thousands of yen)(thousands of yen)
(Note)

Area TypeGreater Tokyo

The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 38th fiscal period (December 31, 2020).

JPR Chayamachi Bldg.
Total

2-19 Chayamachi, Kita-ku, Osaka, Osaka

Form ofOwnership
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2020
2020
(thousands of yen)(thousands of yen)
(Note)
26,247,942
40,100,000

Real estate

7,455,482

9,720,000

Beneficiaryinterest

5,589,647

9,660,000

Real estate

13,965,858

14,500,000

Beneficiaryinterest

7,062,826

11,000,000

Real estate

1,608,202

2,970,000

Real estate

7,158,887

5,540,000

3,490,256

4,300,000

13,002,603

16,300,000

3,781,985

4,000,000

1,577,062

2,260,000

4,392,532

3,610,000

1,878,409

2,580,000

1,660,008

2,170,000

2,318,965

4,680,000

1,302,037

1,660,000

2,008,690

3,680,000

2,114,034

3,560,000

Real estate

3,824,912

3,370,000

Real estate

9,999,197

20,600,000

5,159,090

4,650,000

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

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

3,779,072

4,180,000

12,488,466

14,200,000

Real estate

6,076,026

7,640,000

Beneficiaryinterest

5,994,037

8,370,000

441,758,455

549,949,000(Note) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

3940

Asset Management ReportJapan Prime Realty Investment Corporation

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

OfficeOfficeRetail,etc.

Other Cities

Retail, etc.

Greater Tokyo

Retail, etc.

Central Tokyo

OfficeArea Type

4140

Property Name

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

37th Fiscal Period
38th Fiscal Period(from Jan. 1, 2020 to Jun. 30, 2020)(from Jul. 1, 2020 to Dec. 31, 2020)
RentalRentalRatio to Number
Ratio toNumber of Occupancy Revenues
Occupancy Revenues
Total of Tenants
Total
Tenants at Rate at throughout
Rate atthroughout
Rental at Period
RentalPeriod End Period End
PeriodPeriod End
PeriodRevenues
End
Revenues(Note 1)(%)(thousands(%)(thousands(%)(Note 1)(%)
of yen)of yen)11
100.0
422,109
2.6
11
100.0
404,0142.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
94,1820.6
5100.0
94,4790.6
17100.0
117,301
0.7
17
100.0
118,9370.7
8
100.0
124,0160.8
8100.0
127,538
0.8
10
100.0
469,469
2.9
10
100.0
488,4342.9
2100.0
133,5830.8
2100.0
134,832
0.8
10
100.0
156,057
1.0
10
100.0
157,5680.92
100.0
203,2741.2
2
100.0
204,464
1.2
23
100.0
432,5072.6
22
97.5
432,7892.6
23
99.6
615,9563.8
22
98.3
624,1203.7
4100.0
37,2410.2
4
100.0
37,2140.2
35
98.0
526,4273.2
36
98.0
536,2633.2
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
6
100.0
73,9460.5
6100.0
74,2250.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
9100.0
305,0141.9
9100.0
307,9991.8
5100.0
188,9071.2
5
100.0
190,8591.1
7
100.0
297,7271.8
6100.0
271,0801.6
9
100.0
117,6730.7
8
92.0
109,691
0.7
2

100.0

1,783,500

10.9

2

100.0

1,793,000

10.7

25
9
45
6
－
1
7
1

100.0
100.0
99.3
100.0
－
100.0
100.0
100.0

117,366
188,508
421,164
151,792－(Note 2)
84,640(Note 2)

0.7
1.2
2.6
0.9
－
(Note 2)0.5
(Note 2)

25
8
46
6
9
1
7
1

100.0
84.3
100.0
100.0
97.5
100.0
100.0
100.0

116,731
186,315
396,152
154,583
17,960(Note 2)87,086(Note 2)

0.7
1.1
2.4
0.9
0.1
(Note 2)0.5
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

9
6
6
38
18
21
44
10
24
1
43
16
22
4
71
1
1
1
3
31
10
10
8
41
20
15
16
15
11
5
15
9
13
1

100.0
100.0
100.0
97.6
100.0
100.0
100.0
100.0
100.0
100.0
99.1
100.0
100.0
100.0
99.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.3
97.9
97.9
99.7
98.3
100.0
92.1
99.5
99.9
100.0
99.9
100.0

200,662
81,695
265,400
132,712
127,852
108,539455,020
177,964
151,894(Note 2)
332,156
1,030,176
290,377
282,934
249,530(Note 2)
(Note 2)
(Note 2)
127,041435,792
104,082
125,004
151,990
171,898
108,668
188,587
111,133
119,748
132,062
152,871553,792
132,847
111,619(Note 2)
(Note 2)
165,453
16,363,494

1.2
0.5
1.6
0.8
0.8
0.7
2.8
1.1
0.9
(Note 2)
2.0
6.3
1.8
1.7
1.5
(Note 2)
(Note 2)
(Note 2)
0.8
2.7
0.6
0.8
0.9
1.1
0.7
1.2
0.7
0.7
0.8
0.9
3.4
0.8
0.7
(Note 2)
(Note 2)
1.0
100.0

9
5
6
39
19
20
44
10
23
1
43
16
21
4
72
1
1
1
3
31
10
10
8
41
20
15
17
15
11
5
15
9
13
1
1

100.0
87.2
100.0
97.6
100.0
96.9
100.0
100.0
100.0
100.0
100.0
100.0
98.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.3
98.9
97.9
99.7
100.0
100.0
92.1
99.5
99.9
100.0
99.9
100.0
100.0

210,970
87,803272,083
139,250
131,099
109,683
472,480
182,630
154,558(Note 2)352,492
1,029,571
294,517
293,872
516,454(Note 2)
(Note 2)
(Note 2)
127,041
511,164
119,213
123,857
153,332
173,319
112,129
193,190108,818
124,999
125,481
154,214581,125
131,809
138,004(Note 2)
(Note 2)
181,311
16,714,986

1.3
0.5
1.6
0.8
0.8
0.7
2.8
1.1
0.9
(Note 2)
2.1
6.2
1.8
1.8
3.1
(Note 2)
(Note 2)
(Note 2)
0.8
3.1
0.7
0.7
0.9
1.0
0.7
1.2
0.7
0.7
0.8
0.9
3.5
0.8
0.8
(Note 2)
(Note 2)
1.1
100.0

1
5

851

100.0
100.0

99.7

5

857

100.0

99.3

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Otemachi Financial City North Tower, Rise Arena Bldg., Sencity Bldg. and Kawasaki Dice Bldg.: when a single tenantleases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Otemachi Financial
City North Tower, Rise Arena Bldg., Sencity 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 numbersof tenants.
(Note 2) JPR does not disclose the rental revenues throughout period of the properties and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above. There
were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of the 38th
fiscal period.

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for renovation works, etc. planned as of the end of the 38th fiscal period for JPRowned real estate and entrusted real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses
include portions that are classified as expenses in accounting.

Property Name

Kanematsu Bldg.

Location

Chuo-ku, Tokyo

Shinjuku-ku,
TokyoShinjuku-ku,
BYGS Shinjuku Bldg.
Tokyo
JPR Shinsaibashi
Osaka, OsakaWest
BYGS Shinjuku Bldg.

Tokyo Tatemono
Honmachi Bldg.

Osaka, Osaka

Sencity Bldg.

Chiba, Chiba

Tokyo Tatemono
Honmachi Bldg.

Osaka, Osaka

Rise Arena Bldg.

Toshima-ku,
Tokyo

Housing Design
Center Kobe
JPR Chiba Bldg.

Kobe, Hyogo

Chiba, Chiba
Yokohama,
JPR Yokohama Bldg.
Kanagawa
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
Yakuin BusinessFukuoka,
GardenFukuoka
Shibuya-ku,
JPR Sendagaya Bldg.
Tokyo

Purpose
1st through 2nd phases of replacement of
toilets on standard floors and corridors andceilings in common areas
1st through 2nd phases of repair of common
areas on 2nd basement floor through 1st floor
2nd through 3rd phases of reinforcement ofelevators
1st through 2nd phases of replacement of
toilets
Replacement of distribution boards andreplacement of lighting equipment with LED
lamps on 5th and 8th floors

Replacement of toilets in the West Building
1st through 2nd phases of adoption of VAV(variable air volume) system on 5th and 8th
floorsReplacement of lighting equipment with LED
lamps on 1st floor and 6th through 14th floors
1st through 3rd phases of replacement of
substation facilities
2nd phase of reinforcement of elevators
Repair of exterior walls and work on exterior
signboards
Replacement of piping equipment
Replacement of lighting equipment with LED
lamps on 2nd through 14th floors
Replacement of lighting equipment with LED
lamps on 3rd floor and 5th through 8th floors

Schedule

Planned (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 38th
Paid
Fiscal Period

Oct. 2020–Dec. 2021

225

–

–

Feb. 2021–Oct. 2021

192

–

–

Oct. 2020–Dec. 2021

161

–

–

Feb. 2021–Dec. 2021

134

–

–

Feb. 2021–Jan. 2022

84

–

–

Feb. 2021–Mar. 2021

78

–

–

Feb. 2021–Dec. 2021

66

–

–

Jul. 2020–Jan. 2021

56

–

–

Aug. 2020–Dec. 2021

53

5

5

Dec. 2020–Feb. 2021

50

–

–

Nov. 2020–Feb. 2021

47

–

–

Feb. 2021–Jun. 2021

42

–

–

Mar. 2021–Jun. 2021

35

–

–

Feb. 2021–Jun. 2021

30

–

–

4142

Asset Management ReportJapan Prime Realty Investment Corporation(2) Capital Expenditures during the 38th Fiscal Period(2) Status of Loans Payable

The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 38th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas with the aim of attracting new tenants, among other works. In addition, aside from these
constructions, JPR conducted construction of 571 million yen (Note), which was appropriated as expenditures for repair andmaintenance.

As of December 31, 2020 JPR has the following loans payable.

Location

PurposeJPR Yokohama Bldg.

Yokohama, Kanagawa

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

JPR Harajuku Bldg.
JPR Ichigaya Bldg.

Shibuya-ku, Tokyo
Chiyoda-ku, TokyoMS Shibaura Bldg.

Minato-ku, TokyoBYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

PeriodRepair of exterior walls
Jul. 2020–Dec. 2020
Replacement of outdoor mechanicalDec. 2019–Jul. 2020
parking systems
Renovation of the entrance hall
Sep. 2020–Dec. 2020
Replacement of air conditioning units
Feb. 2020–Oct. 2020
Replacement of lighting equipment
Oct. 2020–Dec. 2020
with LED lamps on 3rd and 4th floors
1st phase of reinforcement ofJun. 2020–Sep. 2020
elevators
Reinforcement of elevators
Apr. 2020–Nov. 2020
Replacement of air conditioning units, repair of common areas,
replacement of lighting equipment with LED lamps, etc.
Total

Construction
Expenses(millions of yen)
338

Short-Term
Loans
PayableProperty Name

Category

66

LenderMizuho Bank Ltd.

Drawdown
Date

Balance asof Jul. 1,
2020(millionsof yen)Dec. 24, 2020

－

6,000

－

6,000

Total

Balance as
Averageof Dec. 31, interest Rate
Repayment
2020
(%)
Date
(millions(Note 1)of yen)(Note 2)
0.188

Jul.5, 2021

Mizuho Bank Ltd.

Nov. 27, 2013

3,000

－

0.970 Nov. 27, 2020

Mizuho Bank Ltd.

Jun. 27, 2014

5,000

5,000

1.178 Jun. 27, 2023

40

Mizuho Bank Ltd.

Mar. 11, 2015

2,000

2,000

1.011 Mar. 11, 2024

33

Mizuho Bank Ltd.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

56
43

33

Mizuho Bank Ltd.

Feb. 4, 2016

5,000

5,000

0.804 Feb. 4, 2026

1,042

Mizuho Bank Ltd.

Mar. 30, 2017

3,000

3,000

0.351 Mar. 30, 2021

1,654

Mizuho Bank Ltd.

Mar. 30, 2017

4,000

4,000

0.400 Mar. 30, 2022

Mizuho Bank Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Mizuho Bank Ltd.

Dec. 5, 2019

2,000

2,000

0.646 Dec. 5, 2029

(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans

MUFG Bank, Ltd.

Nov. 27, 2013

3,000

－

0.970 Nov. 27, 2020

MUFG Bank, Ltd.

Jun. 27, 2014

4,000

4,000

0.889 Jun. 25, 2021

JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.

MUFG Bank, Ltd.

Aug. 31, 2015

1,000

1,000

0.873 Aug. 31, 2023

MUFG Bank, Ltd.

Mar. 25, 2016

5,000

5,000

0.510 Mar. 25, 2024

MUFG Bank, Ltd.

Dec. 15, 2016

2,000

2,000

0.633 Dec. 13, 2024

Other Properties(Note) Expenditures for repair and maintenance included 12 million yen of construction management fees paid to construction management companies as well as the amounts
for repair and maintenance constructions themselves.

Balance of deposits at
beginning of current period

37th Fiscal Period(Jan. 1, 2020 Jun. 30, 2020)

38th Fiscal Period(Jul. 1, 2020 Dec. 31, 2020)

MUFG Bank, Ltd.

Aug. 8, 2017

1,000

1,000

0.638 Aug. 8, 2025

MUFG Bank, Ltd.

Aug. 29, 2017

5,000

5,000

0.600 Aug. 29, 2025

1,215

1,222

1,319

1,310

1,424

MUFG Bank, Ltd.

Sep. 5, 2017

3,000

3,000

0.593 Sep. 5, 2025

624

1,038

997

939

952

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

2,500

1.033 Jun. 27, 2022

617

941

1,006

825

955

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

2,000

2,000

0.351 Mar. 30, 2021

1,222

1,319

1,310

1,424

1,421

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

4,000

4,000

Sumitomo Mitsui Banking Corporation

Dec. 5, 2019

1,000

1,000

Principal lump
0.400 Mar. 30, 2022 sum repayment
Unsecured/(Note 3
Unguaranteedon maturity
0.245 Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

Jun. 26, 2020

3,000

3,000

0.300 Jun. 26, 2025

Development Bank of Japan, Inc.

Jun. 27, 2013

820

820

1.449 Jun. 25, 2021

Development Bank of Japan, Inc.

Dec. 5, 2013

2,000

2,000

1.188 Dec. 3, 2021

Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15, 2016

3,000

3,000

0.843 Jun. 14, 2027

Development Bank of Japan, Inc.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

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

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

38th Fiscal Period(Jul. 1, 2020 – Dec. 31, 2020)

Development Bank of Japan, Inc.

Jun. 27, 2019

2,100

2,100

0.572 Jun. 27, 2029

Sep. 24, 2013

2,000

－

1.076 Sep. 24, 2020

711,694768,216

Shinsei Bank, Ltd.

Management fee 1

219,760

228,570

Management fee 2

196,955

201,124

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134 Dec. 5, 2024

Management fee 3

294,979

338,521

Shinsei Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.843 Jun. 14, 2027(b) Administrative Service and Custodian Fees

78,67482,325

Shinsei Bank, Ltd.

Apr. 5, 2019

5,000

5,000

0.673 April 5, 2029(c) Directors' Fee

4,200

4,200

Shinsei Bank, Ltd.

Sep. 24, 2020

－

1,000

0.525 Sep. 25, 2028

(d) Trust Fees

22,812

21,776(e) Other Expenses

96,617

108,676

Shinsei Bank, Ltd.

Sep. 24, 2020

－

1,000

0.675 Sep. 24, 2030

914,000

985,194

Shinkin Central Bank

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

Shinkin Central Bank

Dec. 5, 2018

3,000

3,000

0.663

Shinkin Central Bank

Jun. 27, 2019

2,000

2,000

0.447 Dec. 27, 2027

The Norinchukin Bank

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

0.604

The Norinchukin Bank

Jun. 27, 2019

2,000

2,000

0.405 Jun. 25, 2027(a) Asset Management Fees (Note)

Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (37th fiscal period: 88,100 thousand
yen, 38th fiscal period: 57,000 thousand yen) have been paid and included in the book value of each property, and fees for asset management of the sold property(38th fiscal period: 7,157 thousand yen) have been paid and deducted from gain on sale of each property.

4342

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteedon maturity

36th Fiscal Period(Jul. 1, 2019 Dec. 31, 2019)

Amounts used from
deposits during the period
Deposits carried forward to
the next period

Total

Remarks

35th Fiscal Period(Jan. 1, 2019 Jun. 30, 2019)

Deposits during the period(Note)

Use

34th Fiscal Period(Jul. 1, 2018 Dec. 31, 2018)

Long-Term Loans Payable

Operation Period(Millions of yen)

Repayment
MethodJun. 4, 2027

Jun. 5, 2025

4344

Asset Management Report

Long-Term Loans Payable4544

LenderDrawdown
Date

Balance asof Jul. 1,
2020(millionsof yen)Balance as
Averageof Dec. 31, interest Rate
Repayment
2020
(%)
Date
(millions(Note 1)of yen)(Note 2)The Norinchukin Bank

Dec. 24, 2020

－

2,000

0.525 Dec. 25, 2028

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2020

3,000

3,000

0.586

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2020

2,000

2,000

0.606 Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2020

－

2,000

0.675 Dec. 24, 2030

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2016

2,000

2,000

0.480

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

Sep. 24, 2019

1,000

1,000

0.554 Sep. 21, 2029

The Bank of Fukuoka, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

Aozora Bank Ltd.

Sep. 30, 2013

1,000

－

1.069 Sep. 24, 2020

Aozora Bank Ltd.

Jul. 3, 2017

900

900

0.625

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.534 Aug. 23, 2024

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.574 Feb. 25, 2025

Aozora Bank Ltd.

Aug. 30, 2018

2,000

2,000

0.553 Feb. 25, 2025

Aozora Bank Ltd.

Sep. 24, 2020－

500

0.525 Sep. 25, 2028

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813 Jun. 21, 2028

Sumitomo Life Insurance Company

Oct. 11, 2016

2,000

2,000

0.453 Oct. 11, 2024

Sumitomo Life Insurance Company

Jul. 22, 2019

1,000

1,000

0.583 Jul. 20, 2029

Sumitomo Life Insurance Company

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Shinkumi Federation Bank

Feb. 5, 2018

4,000

4,000

0.404 Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646 May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.388 Dec. 14, 2021

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

－

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

Principal lump
1.011 Dec. 25, 2020 sum repayment (Note 3) Unsecured/
Unguaranteedon maturity
0.969 Sep. 24, 2024

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Taiyo Life Insurance Company

Dec. 25, 2020

－

1,000

0.675 Dec. 24, 2030

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Use

Remarks

Feb. 4, 2030

Jul. 3, 2025

Feb. 5, 2025

Jun. 5, 2028

Oct. 6, 2023

The Chugoku Bank, Ltd.

Sep. 25, 2018

1,000

1,000

0.661 Mar. 25, 2026

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

The Iyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

National Mutual Insurance Federationof Agricultural Cooperatives

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

Sompo Japan Insurance Inc.

Dec. 25, 2015

2,000

2,000

0.759 Dec. 25, 2023

Nippon Life Insurance Company

Nov. 22, 2019

2,000

2,000

0.225 Nov. 22, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2015

1,000

－

The Hachijuni Bank, Ltd.

Sep. 26, 2016

1,000

1,000

0.209 Sep. 24, 2021

The Hachijuni Bank, Ltd.

Oct. 9, 2020

－

1,000

0.300

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

The Yamaguchi Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

Resona Bank, Ltd.

Mar. 30, 2017

2,000

2,000

0.438 Sep. 30, 2022

NTT FINANCE CORPORATION

May 31, 2018

1,000

1,000

0.408 May 31, 2023

The Kiyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The 77 Bank, Ltd.

May 31, 2018

1,000

1,000

0.408 May 31, 2023

The Daishi Bank, Ltd. (Note 4)

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Daido Life Insurance Company

Dec. 27, 2018

1,000

1,000

0.316 Dec. 25, 2023

The Chiba Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.449 Oct. 25, 2023

0.489

Repayment
MethodOct. 6, 2023

LenderDrawdown
Date

Balance asof Jul. 1,
2020(millionsof yen)Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Dec. 27, 2018

1,000

1,000

0.299 Jun. 27, 2023

The Hyakugo Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.582 Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited

Oct. 4, 2019

1,000

1,000

0.310

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691 Mar. 25, 2026

160,520

158,020

Category

Long-Term Loans Payable

Category

Japan Prime Realty Investment Corporation

Total

Balance as
Averageof Dec. 31, interest Rate
Repayment
2020
(%)
Date
(millions(Note 1)of yen)(Note 2)

Oct. 2, 2026

Repayment
MethodUse

Remarks

Principal
lump sum
Unsecured/(Note 3)
repayment on
Unguaranteedmaturity(Note 1) The average interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 4) The Daishi Bank, Ltd. changed its name to Daishi Hokuetsu Bank, Ltd. as of January 1, 2021 upon the merger with The Hokuetsu Bank, Ltd.

(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of December 31, 2020 are as follows.
Name

Issue Date

Seventh Series ofDec. 14, 2006
Investment Corporation Bonds
Eighteenth Series of Investment
May 31, 2013
Corporation Bonds
Nineteenth Series of Investment
Feb. 5, 2014
Corporation Bonds
Twenty-first Series of Investment
Jul. 22, 2014
Corporation Bonds
Twenty-second Series ofDec. 4, 2014
Investment Corporation Bonds
Twenty-third Series of Investment
May 31, 2018
Corporation Bonds
Twenty-fourth Series of Investment
Jul. 31, 2019
Corporation Bonds (Green Bonds)
Twenty-fifth Series of Investment
Nov. 26, 2020
Corporation Bonds (Green Bonds)
Total

Balance as of
Balance as of
CouponRate
Jul. 1, 2020
Dec. 31, 2020(%)
(millions of yen) (millions of yen)

Maturity Date

4,500

4,500

2.900

Dec. 14, 2026

2,000

2,000

1.460

May 31, 2023

5,000

5,000

1.110

Feb. 5, 2024

4,000

4,000

1.278

Jul. 22, 2026

3,000

3,000

0.831

Dec. 4, 2024

3,000

3,000

0.550

May 31, 2028

5,000

5,000

0.570

July 31, 2029

－

6,000

0.510

Nov. 26, 2030

26,50032,500

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

(4) Subscription Rights to Shares
Not applicable

Oct. 9, 2020

Oct. 9, 2025

4546

Asset Management ReportJapan Prime Realty Investment Corporation

2) Value of Fee Expenses

6. Acquisitions and Sales during the 38th Fiscal Period

Category(1) Acquisition and Sale of Real Estate and Asset-Backed Securities
Acquisition
Type of Asset

Real Estate Name
Acquisition Date
Otemachi Financial City
North Tower
JPR Hakata Bldg.
(35.0% co-ownershipinterest)

Real estate
Beneficiaryinterest

Total

December 24, 2020

Sale

AcquisitionPrice(millions ofyen)(Note)

Sale Date

11,400－－ December 24, 2020－

11,400－－

Sale Price Book Value Difference
Sale
Sale Profit
(A)
(B)
(C)
Expense and Loss(millions of (millions of (A)-(B)(D)(C)-(D)yen)
yen)(millions of (millions (millions of(Note)(Note)
yen)of yen)
yen)
－
1,435
1,435

－
1,011
1,011

－

－

423

8

423

8

－
414
414

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

(2) Acquisition and Sale of Other Assets(3) Survey on Values of Specified Assets, etc.

Acquisition

Real estate

Sale

Beneficiaryinterest

Real Estate Name
Otemachi Financial
City North Tower
JPR Hakata Bldg.
(35.0% co-ownershipinterest)

Transaction Date

December 24, 2020

Management Fees (Note 2)

345,199

Outsourcing Fees

630,247

Tenant Brokerage Fees

37,918(Thousands of yen)
Ratio to Total
Amount(B/A))
72.3%
6.5%
71.8%
2.2%
14.2%
1.4%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 39,052 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or
major shareholders during the 38th fiscal period.
Tokyo Tatemono Co., Ltd.

677,609 thousand yen

Prime Place Co., Ltd.

35,968 thousand yen

Tokyo Real Estate Management Co., Ltd.

198,700 thousand yen

Shinjuku Center Building Management Co., Ltd.

14,760 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company

JPR made no acquisition or sale of other assets in the 38th fiscal period.

Acquisition orType of Asset
Sale

Total Paid Fees(A)

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
249,652
Prime Place Co., Ltd.
22,422
Tokyo Tatemono Co., Ltd.
452,324
Prime Place Co., Ltd.
14,067
5,401
Tokyo Tatemono Co., Ltd.
536
Prime Place Co., Ltd.

Acquisition Price Real Estate
or Sale Price Appraisal Value
Real Estate Appraiser(Note 1)
(Note 2)
(millions of yen) (millions of yen)Japan Real Estate
11,40011,900Institute

December 24, 2020

1,435

1,386
(Note 3)

The Tanizawa Sōgō
Appraisal Co., Ltd.

Appraisal Date

Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

November 1, 2020
November 30, 2020

(Note 1) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 2) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Real Estate
Subject to Securitization.”(Note 3) The real estate appraisal value of JPR Hakata Bldg. (35.0% co-ownership interest) indicates the value equivalent for 35.0% co-ownership interest of the appraisal
value of the entire property as of November 30, 2020.

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

(2) Changes in Calculation Method of Depreciation(4) Transactions with Interested Parties and Major Shareholders

No change has been made.

1) Transaction Status(Thousands of yen)

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

Transaction Amount, Etc.
Category
Purchase Amount, Etc.
Total

Sale Amount, Etc.
11,400,000

1,435,000

Breakdown of transactions with interested parties
Tokyo Tatemono Co., Ltd.
Total

4746

11,400,000(100.0%)1,435,000(100.0%)11,400,000(100.0%)1,435,000(100.0%)47
48

Asset Management ReportJapan Prime Realty Investment Corporation

8. Overview of Self-Managed Investment Trust Beneficiary
Certificates(1) Acquisition

11. Other(1) NoticeTokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the 38th fiscal period
include the following:
Date of Board of Directors Meeting

Number of Units Held

September 14, 2001

40

–

40

January 22, 2002 (Note)

60

–

100

Accumulated Total

100

–

100

October 28, 2020

Approved Item

Overview

Consignment of administrative services
concerning the issuance of the TwentyFifth Series of Unsecured Investment
Corporation Bonds (Note)

JPR consigned the administrative services related to the issuance of theTwenty-Fifth Series of Unsecured Investment Corporation Bonds to
SMBC Nikko Securities Inc., Mizuho Securities Co., Ltd. and Mizuho
Bank, Ltd., on the condition that the Executive Officer should decide toissue the relevant Bonds.

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

(Note) The Board of Directors’ meeting held on April 23, 2020 passed the comprehensive resolution on the issuance of the relevant investment corporation bonds. Based on
this, JPR issued the Twenty-Fifth Series of Unsecured Investment Corporation Bonds on November 26, 2020.

(2) Units Held

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

29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)
30th Fiscal Period(Jul. 1, 2016 – Dec. 31, 2016)
31st Fiscal Period(Jan. 1, 2017 – Jun. 30, 2017)
32nd Fiscal Period(Jul. 1, 2017 – Dec. 31, 2017)
33rd Fiscal Period(Jan. 1, 2018 – Jun. 30, 2018)
34th Fiscal Period(Jul. 1, 2018 – Dec. 31, 2018)35th Fiscal Period(Jan. 1, 2019 – Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 – Jun. 30, 2020)
38th Fiscal Period(Jul. 1, 2020 – Dec. 31, 2020)

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

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis Report on Operating and Management Results.

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

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

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

4948

4950

Financial Statements

Japan Prime Realty Investment Corporation(1) Balance Sheets(Thousands of yen)(Thousands of yen)
End of 37th Fiscal Period(Jun. 30, 2020)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

28,598,680
12,797,488
271,574
130,517－
15,05040,719,576

41,813,311

64,616,121(19,809,897)

66,826,208(20,760,217)

44,806,224

46,065,991

95,176,039(36,554,181)

95,206,152(37,264,443)

Buildings in trust, net

58,621,857

57,941,709

62,220(28,412)73,557(30,266)

33,80743,291

Structures in trust
Accumulated depreciation

133,739(80,982)

135,419(82,417)Structures in trust, net

52,75753,001

Machinery and equipment
Accumulated depreciation

838,393(564,455)

909,004(589,358)

Machinery and equipment, net

273,937

319,646

Machinery and equipment in trust
Accumulated depreciation

1,929,556(1,464,811)

1,932,022(1,476,358)

464,745455,663

143,061(71,367)

170,010(79,189)

Structures
Accumulated depreciation
Structures, net

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

71,69490,821Tools, furniture and fixtures in trust
Accumulated depreciation

252,219(178,396)

279,430(184,639)

73,823

94,790Land
Land in trust
Construction in progress
Construction in progress in trust

123,264,320
192,157,692
1,219
150

133,341,887
191,547,397
1,019
330

Total property, plant and equipment

419,822,228

429,955,550

11,801,831
3,573

11,801,831
3,446

11,805,404

11,805,277

612,216
70,319649,549
166,235

Tools, furniture and fixtures in trust, net

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

5130

27,126,776
12,973,691
289,154
142,036
172,716
15,201

Buildings in trust
Accumulated depreciation

Buildings, net

End of 37th Fiscal Period(Jun. 30, 2020)

End of 38th Fiscal Period(Dec. 31, 2020)

682,536

815,784

432,310,169

442,576,613

119,523
37,540153,146
30,456

157,064

183,602473,186,809

484,573,526

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
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*2

End of 38th Fiscal Period(Dec. 31, 2020)

2,814,074－
20,820,000
910,146
79,421
605
136,082
3,048,380－

2,931,209
6,000,000
19,820,000
1,048,185
88,281605
501,994
2,977,266
302

27,808,710

33,367,843

26,500,000
139,700,000
9,378,333
13,961,750

32,500,000
138,200,000
10,100,242
14,005,614

189,540,084

194,805,857

217,348,795

228,173,700

247,860,796

247,860,796

689,444689,444689,444689,4447,287,774

7,849,585

7,977,218

8,539,029

255,838,014

256,399,826

255,838,014
473,186,809*2

256,399,826
484,573,526

52
31

Financial Statements

Japan Prime Realty Investment Corporation(2) Statements of Income and Retained Earnings(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)
Operating revenue
Rent revenue-real estate
Gain on sale of real estate

16,363,494
－

*1
*2

16,363,494*1

7,436,206
711,694
78,6744,200
22,812
96,617

16,714,986
414,931
17,129,917*1

7,611,662
768,216
82,325
4,200
21,776108,676

8,350,206

8,596,857

8,013,288

8,533,060

195
21,66925,2584,088

200
40,7204,444
1,433

51,212

46,799543,152
23,760167,455
9,988
5,537
37,154

525,756
24,143
171,817
10,5337,084
198

787,050

739,534

Ordinary income

7,277,450

7,840,325

Income before income taxes

Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management association accounts
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other
Total non-operating expenses

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

38th Fiscal Period(Jul. 1, 2020 - Dec. 31, 2020)

231,653,198

247,860,796

Unitholders' equity*1

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(Thousands of yen)

38th Fiscal Period(Jul. 1, 2020 – Dec. 31, 2020)

7,277,450

7,840,325

Income taxes-current

605

605

Total income taxes

605

605

Net income

7,276,845

7,839,720

Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

10,9287,287,774

9,865
7,849,585

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

16,207,597
16,207,597－

247,860,796

247,860,796

689,444689,444

Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period－－

689,444689,4446,926,967

7,287,774(6,916,039)
7,276,845(7,277,908)
7,839,720

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

360,806

561,811

7,287,774

7,849,585

7,616,411

7,977,218

Dividends from surplus(6,916,039)(7,277,908)

Net income

7,276,845

7,839,720

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

360,806

561,811

Balance at end of current period

7,977,218

8,539,029

Total unitholders' equity
Balance at the beginning of current period

239,269,610

255,838,014

Total changes of items during the period

Changes of items during the period
Issuance of units

16,207,597

Dividends from surplus(6,916,039)(7,277,908)

Net income

7,276,845

7,839,720

Total changes of items during the period

16,568,404

561,811

255,838,014

256,399,826

239,269,610

255,838,014

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

16,207,597

Dividends from surplus(6,916,039)(7,277,908)

Net income

7,276,845

7,839,720

Total changes of items during the period

16,568,404

561,811

255,838,014

256,399,826

Balance at end of current period

32

53

33
54

Financial Statements

Japan Prime Realty Investment Corporation(4) Statements of Cash Distributions(5) Statements of Cash Flows(Thousands of yen)

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)
I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Voluntary reserve
Provision of reserve for reduction entry

IV.

Retained earnings carried forward

Method for calculating distribution amount38th Fiscal Period(Jul. 1, 2020 - Dec. 31, 2020)

37th Fiscal Period(Jan. 1, 2020 - Jun. 30, 2020)

38th Fiscal Period(Jul. 1, 2020 - Dec. 31, 2020)

7,277,450

7,840,325

2,027,993
9,988

2,085,621
10,533

5,537

7,084

Interest expenses(195)
710,608(200)
697,573

Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable(42,646)(172,716)

17,580172,716

7,287,774,097 yen
7,277,908,750 yen(7,595 yen)

7,849,585,585 yen
7,426,437,500 yen(7,750 yen)

Net cash provided by (used in) operating activities
Income before income taxes

Amortization of investment unit issuance expenses
Interest income－

414,050,403 yen

9,865,347 yen

9,097,682 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 7,277,908,750
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (958,250 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,426,437,500 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(958,250 units) from the balance ofunappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 65-7 of the
Act on Special Measures Concerning
Taxation, while minimizing the burden tounitholders incurred by accrual of corporate
income tax, etc. Furthermore, JPR shall not
distribute cash in excess of earnings as
stipulated in Article 30 (4) of the Articles ofIncorporation.

Depreciation and amortization
Amortization of investment corporation bond issuance costs

17,368

11,519

Increase (decrease) in accounts payable-other(178,048)
240,609(84,519)
138,359

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(245,172)25,934

365,911(71,113)－3,184

1,011,451(111,233)

9,679,895

12,091,609

Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable

Decrease in property, plant and equipment in trust due to sale
Other, net
Subtotal

195

200

Income taxes (paid) refund(712,361)(605)(688,713)(605)

Net cash provided by (used in) operating activities

8,967,123

11,402,490

Purchase of property, plant and equipment(14,685,251)(12,025,561)

Purchase of property, plant and equipment in trust
Purchase of intangible assets(4,888,250)－(1,002,768)(285)

Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits(21,440)(37,332)(73,346)
1,402,591(192,083)
913,992(55,383)
428,829(147,585)
206,253(17,892,251)(12,285,370)－

6,000,000

Interest income received
Interest expenses paid

Net cash provided by (used in) investing activities

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 short-term loans payable(1,000,000)－

13,000,000(10,000,000)

8,500,000(11,000,000)－
16,165,436

5,955,843－

Dividends paid

(6,915,347)(7,277,262)

Net cash provided by (used in) financing activities

11,250,088

2,178,580

Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds

Proceeds from issuance of investment units

Net changes in cash and cash equivalents

2,324,960

1,295,701

Cash and cash equivalents at beginning of current period

37,775,506

40,100,467

Cash and cash equivalents at end of current period

34

55

*1

40,100,467*1

41,396,168

35
56

Financial Statements

Japan Prime Realty Investment Corporation(6) Notes to Financial Statements(Notes to Accounting Standards Not Yet Adopted)(Basis of Presenting Financial Statements)

・ Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 (revised 2020) issued by the Accounting Standards Boardof Japan (ASBJ) on March 31, 2020)
・ Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 (revised 2020) issued by
ASBJ on March 31, 2020)
・ Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19 (revised 2020) issued
by ASBJ on March 31, 2020)

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

(Significant Accounting Policies)
1. Depreciation/Amortization
Method for Long-lived Assets

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

4. Scope of Cash and Cash
Equivalents in the Statements ofCash Flows
5. Other Significant Items
Fundamental to the Preparation of
Financial Statements(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years basedon the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR uses
the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses related
to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the purchase cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted to52,474 thousand yen for the fiscal period ended June 30, 2020 and amounted to 1,466 thousand yen for the
fiscal period ended December 31, 2020.
Cash and cash equivalents in the Statements of Cash Flows include the following items(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the balance
sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately presented in the balance sheets for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
Revenues and expenses in the Statements of Income and Retained Earnings do not include consumption taxes.

(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed acomprehensive accounting standard for revenue recognition, and issued it as Revenue from Contracts with Customers (IFRS 15
issued by IASB and Topic 606 issued by FASB) in May 2014. The IFRS 15 is applicable for accounting periods beginning on
January 1, 2018 and thereafter, and the Topic 606 is applicable for accounting periods beginning after December 15, 2017. In
accordance with this, the ASBJ has developed a comprehensive accounting standard for revenue recognition and issued it together
with its implementation guidance.
In developing the accounting standard for revenue recognition, the ASBJ made it a basic policy to adopt the basic principles of the
IFRS 15 as a starting point. By doing so, the ASBJ established the accounting standard from the viewpoint of comparability, which
is a benefit for securing consistency with the IFRS 15, between financial statements based on the Japanese GAAP and those basedon other accounting standards. Alternative treatments are also to be added, to the extent that they do not harm the comparability, incases where there are items to be considered in the actual practices conducted in Japan to date.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard, etc. from the beginning of the fiscal period ending December 31, 2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Revenue Recognition, etc. is being assessed at present.
・ Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued by ASBJ on July 4, 2019)・ Accounting Standard for Financial Instruments (ASBJ Statement No. 10 (revised 2019) issued by ASBJ on July 4, 2019)・ Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31 issued by ASBJ on July4, 2019)
・ Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19 (revised 2020) issued
by ASBJ on March 31, 2020)(1) Overview
IASB and FASB have established detailed guidance for fair value measurement (IFRS 13 “Fair Value Measurement” under theInternational Financial Reporting Standards and Topic 820 “Fair Value Measurement” of the Accounting Standards Codification
under the U.S. accounting standards) containing almost the same content. In light of this, the ASBJ worked to secure consistency of
the Japanese accounting standards with the international accounting standards, mainly in terms of the guidance on and disclosure of
the fair value of financial instruments, and announced the Accounting Standard for Fair Value Measurement, etc.
The basic policy of ASBJ for the development of the Accounting Standard for Fair Value Measurement was to adopt all provisionsof the IFRS 13 as a rule by using a unified calculation method, from the viewpoint of improving the comparability between thefinancial statements of the Japanese and foreign companies. Moreover, in consideration of the practices conducted in Japan to date,
ASBJ determined to establish other treatments for individual items, to the extent that they do not greatly harm the comparability
between the financial statements.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standards, etc. from the beginning of the fiscal period ending December 31, 2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Fair Value Measurement, etc. is being assessed at present.
・ Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No. 31 issued by ASBJ on March 31, 2020)(1) Overview
With regard to the "sources of estimation uncertainty" for which disclosure is required under Paragraph 125 of the International
Accounting Standards ("IAS") 1 "Presentation of Financial Statements" ("IAS 1") issued by IASB in 2003, requests were made for
ASBJ to investigate the requirement of disclosure of such information in the form of notes under the Japanese GAAP as useful
information for users of financial statements. Accordingly, ASBJ has developed and published the Accounting Standard forDisclosure of Accounting Estimates (the "Accounting Standard").

36

57

3758

Financial Statements

Japan Prime Realty Investment Corporation

The basic policy of ASBJ for the development of the Accounting Standard was to provide general principles (disclosure objectives),
instead of expanding required information in the notes, and let companies determine specific disclosure contents in light of thedisclosure objectives. In developing the Standard, ASBJ referred to the provisions of the Paragraph 125 of the IAS 1.

(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(2) Scheduled date of adoption
JPR will adopt the Accounting Standard from the end of the fiscal period ending June 30, 2021.

(Thousands of yen)

37th Fiscal Period(January 1, 2020 – June 30, 2020)

38th Fiscal Period(July 1, 2020 – December 31, 2020)

A. Rent Revenue-Real Estate・ Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections (ASBJ Statement No. 24(revised 2020) issued by ASBJ on March 31, 2020)(1) Overview
Given the recommendation to investigate enhancement of note information regarding the "accounting principles and procedures
adopted in cases when provisions of relevant accounting standards are not clear," ASBJ has made necessary amendments andpublished the Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections.
Furthermore, ASBJ has determined that, when enhancing the note information regarding the "accounting principles and procedures
adopted in cases when provisions of relevant accounting standards are not clear," the provisions in the Notes on Corporate
Accounting Principles (Note 1-2) shall be followed as before in order to avoid any impact on the practices taken to date when theprovisions of relevant accounting standards are clear.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard from the end of the fiscal period ending June 30, 2021.

(Notes to Balance Sheets)

Rent Revenue
Rents
Land rents
Common charges
Parking fees
Advertising fees
Antenna usage fees
Other
Subtotal
Other rental revenues
Incidental rent income

12,097,265
1,793,000

1,554,972
267,620

1,519,164
270,90337,17927,60838,051
28,62638,18341,304

15,674,404

15,788,315

620,296

833,557

Time-based parking fees
Cancellation charges

8,432
9,088

8,730
15,300

Income equivalent to expenses for restoration
to original condition

21,91037,722Other miscellaneous income

29,362

31,359Subtotal

689,090926,670

16,363,416,363,49494005,870
16,363,494

16,363,416,363,49494005,870
16,714,986

Outsourcing expenses

615,760

630,247

Utilities expenses
Property and other taxes

712,430
2,358,609

841,010
2,387,806

Casualty insurance
Repairs and maintenance

26,116
602,597

26,863558,378

Property management fees
Management association accounts

331,402306,147
585,595

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

Total rent revenue-real estate

financial stability.

11,965,339
1,783,500

B. Expenses Related to Rent Business(Thousands of yen)
End of 37th Fiscal Period(as of June 30, 2020)
Credit limit

End of 38th Fiscal Period(as of December 31, 2020)
24,000,000

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

24,000,000－－

24,000,000

24,000,000*2 Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 37th Fiscal Period(as of June 30, 2020)

End of 38th Fiscal Period(as of December 31, 2020)
50,00050,000573,6212,027,669

Depreciation
Other
Total expenses related to rent business
C. Profits for Rent Business(A-B)

2,085,275

187,999

190,3397,436,206

7,611,662

8,927,288

9,103,323*2. Breakdown of Gain on Sale of Real Estate, etc.

(Thousands of yen)
37th Fiscal Period(January 1, 2020 – June 30, 2020)

JPR Hakata Bldg. (35.0% co-ownership interest)
Proceeds from sale of real estate

38th Fiscal Period(July 1, 2020 – December 31, 2020)－

1,435,000

Other expenses related to sale－－

1,011,451
8,617

Gain on sale of real estate－

414,93137th Fiscal Period(January 1, 2020 – June 30, 2020)

38th Fiscal Period(July 1, 2020 – December 31, 2020)

Cost of sale of real estate(Notes to Statements of Changes in Unitholders’ Equity)
Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

5938





5,000,000 units

5,000,000 units

958,250 units

958,250 units

3960

Financial Statements

Japan Prime Realty Investment Corporation(Notes to Statements of Cash Flows)*1. Reconciliation of the Amounts of the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows with theAmounts of the Corresponding Accounts on the Balance Sheets

2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of June 30, 2020 of financial instruments, and the difference between theseamounts. 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)(Thousands of yen)

Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference

38th Fiscal Period(July 1, 2020 – December 31, 2020)(1)

Cash and deposits

27,126,776

27,126,776－

Cash and deposits

27,126,776

28,598,680(2)

Cash and deposits in trust

12,973,691

12,973,691－

Cash and deposits in trust

12,973,691

12,797,488

40,100,467

41,396,168(3)

Short-term loans payable－－

Cash and cash equivalents－(4)

Current portion of long-term loans payable(20,820,000)(20,896,871)

76,871(5)

Investment corporation bonds(26,500,000)(27,476,144)

976,144(6)

Long-term loans payable(139,700,000)(141,351,070)

1,651,070



37th Fiscal Period(January 1, 2020 – June 30, 2020)(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)
Due within one year

37th Fiscal Period(as of June 30, 2020)

38th Fiscal Period(as of December 31, 2020)
6,515,890

6,117,669

Due after one year

13,215,936

11,016,658

Total

19,731,827

17,134,327

The following are the carrying values and fair values as of December 31, 2020 of financial instruments, and the difference 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)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

28,598,680

28,598,680－(2)

Cash and deposits in trust

12,797,488

12,797,488－(Financial Instruments)(3)

Short-term loans payable(6,000,000)(6,000,000)－

1. Matters Concerning Status of Financial Instruments(4)

Current portion of long-term loans payable(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management(19,820,000)(19,879,337)

59,337(5)

Investment corporation bonds(32,500,000)(33,484,337)

984,337(6)

Long-term loans payable(138,200,000)(139,821,962)

1,621,962

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.

(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments

There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.

(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 book value and is thus stated at thatbook value.
(3) Short-term loans payable(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.

As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the book value and is thus stated at that book value.
(4) Current portion of long-term loans payable, and (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 of principal and interests
are discounted by the rate assumed as being applicable in the event of a new drawdown whose term is corresponding to the remaining loan term.
(5) Investment corporation bonds

Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.

Of the fair value of these financial instruments, those with market price are measured based on market price and those with no market price are calculated inaccordance with (4) 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 toLoans 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 from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby 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, include values based on reasonable calculations
when there is no market price. Certain assumptions are used in calculating those values and there may be cases where the values

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 estimate the actual lease term. The following is the carrying value of tenant leasehold and security deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
Category

End of 37th Fiscal Period(as of June 30, 2020)

End of 38th Fiscal Period(as of December 31, 2020)

Tenant leasehold and security deposits

9,378,333

10,100,242

Tenant leasehold and security deposits in trust

13,961,750

14,005,614

will vary when different assumptions are used.

40

61

4162

Financial Statements

Japan Prime Realty Investment Corporation(Note 4) Scheduled redemption of monetary claims to be due subsequent to the 37th fiscal period end (June 30, 2020)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

27,126,776

－

－

－

－

－

Cash and deposits in trust

12,973,691

－

－

－

－

－

37th fiscal period (as of June 30, 2020)
Not applicable as JPR entered into no derivative transactions
38th fiscal period (as of December 31, 2020)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
37th fiscal period (as of June 30, 2020)

Scheduled redemption of monetary claims to be due subsequent to the 38th fiscal period end (December 31, 2020)(Thousands of yen)

(Note 5)(Derivative Transactions)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

28,598,680

－

－

－

－

－

Cash and deposits in trust

12,797,488

－

－

－

－

－

Not applicable as JPR does not have any retirement benefit plans
38th fiscal period (as of December 31, 2020)
Not applicable as JPR does not have any retirement benefit plans(Tax Effect Accounting)
1. Breakdown of Main Items that Caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due subsequent to
the 37th fiscal period end (June 30, 2020)

(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Short-term loans payable

－

－

－

－

－

－

Investment corporation bonds－－

2,000,000

5,000,000

3,000,000

16,500,000

20,820,000

20,500,000

16,000,000

20,000,000

21,000,000

62,200,000Long-term loans payable

the 38th fiscal period end (December 31, 2020)(Thousands of yen)

Short-term loans payable

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

6,000,000

－

－

－

－

－

－

－

2,000,000

8,000,000－

22,500,000

19,820,000

18,500,000

21,000,000

15,000,000

23,900,000

59,800,000

Investment corporation bonds
Long-term loans payable(Securities)
37th fiscal period (as of June 30, 2020)
Not applicable
38th fiscal period (as of December 31, 2020)
Not applicable

38th Fiscal Period(July 1, 2020 – December 31, 2020)

31.46%

31.46%(31.46%)(29.80%)

Other

0.01%

(1.65%)

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Effective statutory tax rate
(Adjustment)
Deductible cash distributions

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due subsequent to37th Fiscal Period(January 1, 2020 – June 30, 2020)(Equity Method Income and Retained Earnings)
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable as JPR does not have any affiliated companies
38th fiscal period (July 1, 2020 – December 31, 2020)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
38th fiscal period (July 1, 2020 – December 31, 2020)
Not applicable
2. Affiliated Companies
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
38th fiscal period (July 1, 2020 – December 31, 2020)
Not applicable
3. Sister Companies
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
38th fiscal period (July 1, 2020 – December 31, 2020)
Not applicable
4. Directors and Major Individual Unitholders
37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable
38th fiscal period (July 1, 2020 – December 31, 2020)
Not applicable

42

63

43
64

Financial Statements(Asset Retirement Obligations)Japan Prime Realty Investment Corporation(Investment and Rental Properties)

37th fiscal period (January 1, 2020 – June 30, 2020)
Not applicable

JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban multi-use facilities forleasing in Tokyo and other regions. The following is the carrying value on the Balance Sheets, amount of increase (decrease) during
the period and fair value of these investment and rental properties.

38th fiscal period (July 1, 2020 – December 31, 2020)
Not applicable(Thousands of yen)

(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rent business.
[Related Information]
37th fiscal period (January 1, 2020 – June 30, 2020)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan are in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
38th fiscal period (July 1, 2020 – December 31, 2020)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan are in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on the Statementsof Income and Retained Earnings.

37th Fiscal Period(January 1, 2020 – June 30, 2020)

Carrying Value on the Balance Sheets
Balance at Beginning of Period38th Fiscal Period(July 1, 2020 – December 31, 2020)

414,502,663

431,625,198

Amount of Increase (Decrease) during the Period

17,122,534

10,133,256

Balance at End of Current Period

431,625,198
538,627,000

441,758,455

Fair Value at End of Period

549,949,000(Note 1) The carrying value on the balance sheets is the purchase cost less accumulated depreciation.
(Note 2) For the 37th fiscal period, the amount of increase is primarily attributable to the acquisition of JPR Shinsaibashi West (3,794,912 thousand yen) and the acquisitionof Sencity Bldg. (14,013,667 thousand yen), and the amount of decrease is primarily attributable to depreciation (2,027,669 thousand yen). For the 38th fiscal
period, the amount of increase is primarily attributable to the acquisition of Otemachi Financial City North Tower (11,541,078 thousand yen), and the amount ofdecrease is primarily attributable to the sale of JPR Hakata Bldg. (35.0% co-ownership interest) (1,011,451 thousand yen) and depreciation (2,085,275 thousandyen).
(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 37th and 38th fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)


37th Fiscal Period(January 1, 2020 – June 30, 2020)

38th Fiscal Period(July 1, 2020 – December 31, 2020)

266,984 yen

267,570 yen

7,690 yen

8,181 yen

Total net assets per unit
Net income per unit

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

37th Fiscal Period(January 1, 2020 – June 30, 2020)
7,276,845

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

7,276,845

7,839,720

946,241 units

958,250 units

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

38th Fiscal Period(July 1, 2020 – December 31, 2020)
7,839,720(Subsequent Events)

Issuance of unsecured investment corporation bonds
Based on the comprehensive resolution concerning the issuance of investment corporation bonds made at its Board of Directors
meeting held on April 23, 2020, JPR decided on March 5, 2021 to issue bonds as described below. The payment completed on March
16, 2021.
Name of the investment
corporation bonds

Japan Prime Realty Investment Corporation 26th Series of Unsecured Investment Corporation Bonds(with special pari passu conditions among specified investment corporation bonds)

Total amount of the investment
corporation bonds

3.0 billion yen

Subscription period

March 5, 2021

Interest rate

0.760% per annum

Payment date

March 16, 2021

Collateral

Unsecured and unguaranteed

Purchase price

100 yen per 100 yen of theinvestment corporation bonds

Redemption method and date

The total amount of the bonds will be redeemed on March 14, 2036. The bonds may be repurchased andcancelled at the option of JPR at any time on and after the day following the payment date, unlessotherwise determined by the book-entry transfer agent.

Use of funds

Partial early repayment of short-term loans payable

44

65

45
66

Financial Statements

Japan Prime Realty Investment Corporation(7) Detailed Schedules

5) Schedule of Investment Corporation Bonds
Decreaseduring the
Period(thousands ofyen)

Balance as ofDecember 31,
2020(thousands of
yen)

Name

Issue Date

Balance as ofJuly 1, 2020
(thousands ofyen)2) Status of Contract Amounts, etc. and Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

3) Schedule of Assets Related to Real Estate

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000－

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

Twenty-third Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2018

3,000,000－

3,000,000

0.550

May 31, 2028

Twenty-fourth Series ofInvestment Corporation
Bonds (Green Bonds)(Note 1)

Jul. 31, 2019

5,000,000－

5,000,000

0.570

Jul. 31, 2029

Twenty-fifth Series ofInvestment Corporation
Bonds (Green Bonds)(Note 1)

Nov. 26, 2020－－

6,000,000

0.510

Nov. 26, 2030

26,500,000－

32,500,000

1) Schedule of Securities
Not applicable

Asset Type

Current Assets
Noncurrent Assets(Property, plantand equipment)
Buildings
Structures
Machinery andequipment
Tools,
furniture andfixtures
Land
Constructionin progress
Subtotal(Beneficiaryinterests in trust)Buildings in
trust
Structures intrust
Machineryandequipment in
trust
Tools,
furniture andfixtures intrust
Land in trust
Constructionin progress intrust

Accumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
Net Balance as ofJuly 1, 2020
the Period
the Period
during the2020
December 31, 2020
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of(thousands of yen)
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)
－
－
－
－
－
－
－

64,616,121
62,2202,210,087
11,337－－

66,826,208
73,557

20,760,217
30,266

950,3201,854

46,065,991
43,291

838,393

70,611－

909,004

589,358

24,902

319,646

143,061

26,948－170,010

79,1897,821

90,821

123,264,320

10,077,567－

133,341,887－－

133,341,887

1,219

400

600

1,019

－

－

1,019

188,925,336

12,396,953

600

201,321,689

21,459,031

984,897

179,862,658

95,176,039

772,221742,107

95,206,152

37,264,443

1,059,346

57,941,709

133,739

4,206

2,527

135,419

82,4172,920

53,001

1,929,556

25,971

23,505

1,932,022

1,476,358

28,777455,663

252,219

31,050

3,839

279,430

184,639

9,267

94,790

192,157,692－

610,294

191,547,397－－

191,547,397

150

330

150

330

－

－

330

Subtotal

289,649,397

833,780

1,382,425

289,100,752

39,007,860

1,100,312

250,092,892

Total

478,574,734

13,230,733

1,383,025

490,422,442

60,466,891

2,085,210

429,955,550

Intangible Assets
Leasehold
right
Other

11,801,831－－

11,801,831－－

11,801,831

5,849

285

－

6,134

2,687

411

3,446

Total

11,807,680

285－

11,807,965

2,687

411

11,805,277

Remarks

Propertyacquisition

Total

CouponRate
Maturity Date
(%)

Use

Remarks(Note 2)

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

Investment corporation
bonds

－

－

2,000,000

8,000,000

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

(Note 1) The “Increase during the Period” is due to property acquisition and construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of construction completion for construction in progress and construction inprogress in trust, and due to property sale, etc. for buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust and landin trust.

4) Schedule of Other Specified Assets
Not applicable

46

67

4768

Financial Statements

6) Schedule of Loans Payable
LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current
2020
2020
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Total

Lender－6,000,000－

6,000,000－

6,000,000－

6,000,000

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current
2020
2020
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)0.188%

Average
Interest
Rate(Note 2)
(Note 3)

Jul.5, 2021

Repayment
Date

Mizuho Bank Ltd.

3,000,000－

3,000,000－

0.970%

Nov. 27, 2020

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.351%

Mar. 30, 2021

Mizuho Bank Ltd.

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Mizuho Bank Ltd.

5,000,000－－

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

Mizuho Bank Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Mizuho Bank Ltd.

2,000,000－－

2,000,000

0.646%

Dec. 5, 2029

MUFG Bank, Ltd.

3,000,000－

3,000,000－

0.970%

Nov. 27, 2020

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.889%

Jun. 25, 2021

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.873%

Aug. 31, 2023

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

MUFG Bank, Ltd.

2,000,000－－

2,000,000

0.633%

Dec. 13, 2024

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.638%

Aug. 8, 2025

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.600%

Aug. 29, 2025

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.593%

Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.351%

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

1.033%

Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

1,000,000－－

1,000,000

0.245%

Dec. 5, 2023

3,000,000－－

3,000,000

0.300%

Jun. 26, 2025

Development Bank of Japan, Inc.

820,000－－

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14, 2027

Development Bank of Japan, Inc.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Development Bank of Japan, Inc.

2,100,000－

2,100,000

0.572%

Jun. 27, 2029

Shinsei Bank, Ltd.

2,000,000－

Shinsei Bank, Ltd.

2,000,000－

2,000,000－

1.076%

Sep. 24, 2020－

2,000,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.

1,000,000

Shinsei Bank, Ltd.

－

－

－

1,000,000

0.843%

Jun. 14, 2027

1,000,000－

1,000,000

0.525%

Sep. 25, 2028

Shinsei Bank, Ltd.

5,000,000

Shinsei Bank, Ltd.

－

－

－

5,000,000

0.673%

Apr. 5, 2029

1,000,000－

1,000,000

0.675%

Sep. 24, 2030

Shinkin Central Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

Shinkin Central Bank
Shinkin Central Bank

3,000,000－－

3,000,000

0.663%

Jun. 4, 2027

2,000,000－－

2,000,000

0.447%

Dec. 27, 2027

The Norinchukin Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.405%

Jun. 25, 2027

The Norinchukin Bank－

2,000,000－

2,000,000

0.525%

Dec. 25, 2028

Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

0.586%

Feb. 4, 2030

Mizuho Trust & Banking Co., Ltd.

2,000,000－－

2,000,000

0.606%

Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

－2,000,000－

2,000,000

0.675%The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

The Bank of Fukuoka, Ltd.

2,000,000－－

The Bank of Fukuoka, Ltd.

1,000,000－

The Bank of Fukuoka, Ltd.

1,000,000

－

6948

－

Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Long-Term Loans Payable (Note 1)(Note 4)

Use

Unsecured/
Unguaranteed

Remarks

Long-Term Loans Payable (Note 1)

Sumitomo Mitsui Banking Corporation

LenderRemarks

Short-Term Loans Payable
Mizuho Bank Ltd.

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current
2020
2020
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)(Note 4)

Unsecured/
UnguaranteedAozora Bank Ltd.

1,000,000－

1,000,000－

1.069%

Sep. 24, 2020

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank Ltd.

2,000,000－－

2,000,000

0.553%

Feb. 25, 2025

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

Aozora Bank Ltd.

－

500,000－

500,000

0.525%

Sep. 25, 2028

Meiji Yasuda Life Insurance Company

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

3,200,000－－

3,200,000

0.813%

Jun. 21, 2028

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.583%

Jul. 20, 2029

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Shinkumi Federation Bank

4,000,000－－

4,000,000

0.404%

Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.388%

Dec. 14, 2021

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

Taiyo Life Insurance Company

1,000,000－

1,000,000－

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sep. 24, 2024

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.811%

Jun. 5, 2028

Taiyo Life Insurance Company－

1,000,000－

1,000,000

0.675%

Dec. 24, 2030

The Chugoku Bank, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.661%

Mar. 25, 2026

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.816%

Oct. 6, 2023

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

National Mutual Insurance Federation ofAgricultural Cooperatives

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

Sompo Japan Insurance Inc.

2,000,000－－

2,000,000

0.759%

Dec. 25, 2023

Nippon Life Insurance Company

2,000,000－－

2,000,000

0.225%

Nov. 22, 2023

The Hachijuni Bank, Ltd.

1,000,000－

1,000,000－

0.489%

Oct. 9, 2020

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.209%

Sep. 24, 2021

The Hachijuni Bank, Ltd.

－

1,000,000－

1,000,000

0.300%

Oct. 9, 2025

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

Resona Bank, Ltd.

2,000,000－－

2,000,000

0.438%

Sep. 30, 2022

NTT FINANCE CORPORATION

1,000,000－－

1,000,000

0.408%

May 31, 2023

The Kiyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

The Daishi Bank, Ltd. (Note 5)

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Daido Life Insurance Company

1,000,000－－

1,000,000

0.316%

Dec. 25, 2023

The Chiba Bank, Ltd.

1,000,000－－

1,000,000

0.449%

Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000－－

1,000,000

0.299%

Jun. 27, 2023

The Hyakugo Bank, Ltd.

1,000,000－－

1,000,000

0.582%

Apr. 25, 2025

The Hiroshima Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited1,000,000－－

1,000,000

0.310%

Oct. 2, 2026

0.691%

Mar. 25, 2026

Sumitomo Mitsui Trust Bank Limited

1,000,000－－

1,000,000

Total

160,520,000

8,500,000

11,000,000

158,020,000(Note 1)

(Note 4)

Unsecured/
Unguaranteed

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheets are as follows.
Due in One Yearor Less(thousands of yen)
Long-term loans payable

19,820,000

Due after One Yearthrough Two Years(thousands of yen)

18,500,000

Due after Two Years
through Three Years(thousands of yen)

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

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

21,000,000

15,000,000

23,900,000(Note 2)

The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loan

Dec. 24, 2030

(Note 3)

Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.

0.816%

Oct. 6, 2023

(Note 4)

Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption

2,000,000

0.480%

Jul. 7, 2026－

1,000,000

0.554%

Sep. 21, 2029

(Note 5)

The Daishi Bank, Ltd. changed its name to Daishi Hokuetsu Bank, Ltd. as of January 1, 2021 upon the merger with The Hokuetsu Bank, Ltd.

－

1,000,000

0.598%

Jan. 30, 2030

arrangement paid to the above lenders are not included.

of investment corporation bonds, etc.

4970

Financial Statements

Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report

50

71

72

Financial Statements

Investor Information(9) Other Notes (Information only)

Status of Investment Unit Price (as of December 31, 2020)(Property and Equipment Leased to JPR)
37th Fiscal Period(January 1, 2020 – June 30, 2020)

Market capitalization: ¥327.7 billion

38th Fiscal Period(July 1, 2020 – December 31, 2020)

No property and equipment was leased to JPR

Japan Prime Realty Investment Corporation

High: ¥564,000 (May 7, 2007)

Unit price at end of 38th Fiscal Period: ¥342,000

No property and equipment was leased to JPR

Low: ¥130,300 (October 28, 2008)

Trading Volume(units)64,000

Trading Volume (units)

Unit Price (yen)Unit Price(yen)
580,000(Transactions with Interested Parties)
37th fiscal period (January 1, 2020 – June 30, 2020)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Interested
party

Tokyo
TatemonoCo., Ltd.

Real estatebusiness

Mizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

Asset
Custodian

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

3.05%

－

Transactions

Purchase ofreal estate
beneficiaryinterest
Repayment oflong-term loans
payableBorrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)

3,750,000

7,000,000
5,000,000
16,278

Account－－
Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

56,000520,000

48,000460,000

40,000400,000

32,000340,000

24,000280,000

16,000220,000

8,000

160,000－－
5,000,000
325(Note) Transaction terms are determined based on prevailing market conditions.

38th fiscal period (July 1, 2020 – December 31, 2020)
Attribute

Interested
party

Asset
CustodianName ofCompany,
etc.

Tokyo
TatemonoCo., Ltd.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

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

Transactions

Purchase ofreal estate
Real estatebusiness

Bankingbusiness andtrust business

3.05%

－

Sale ofreal estate
beneficiaryinterest
Borrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)

Account

Balance at End
of Period(thousands ofyen)

11,400,000－－

1,435,000－－

2,000,000
15,230Long-term
loans
payableAccruedexpenses

0Jun. 14 Dec. 31
2002 2002

Dec. 312003

Dec. 312004

Dec. 312005

Dec. 312006

Dec. 312007

Dec. 312008

Dec. 312009

Dec. 312012

Dec. 312013

Dec. 312014

Dec. 312015

Dec. 312016

Dec. 312017

Dec. 312018

Dec. 312019

100,000
Dec. 31
2020

Breakdown of Unitholders (as of December 31, 2020)
Other domestic
corporations

Foreign investors291(2.65%)(2.15%)

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

Dec. 312011(Note) Unit prices are based on closing prices.

236

747

Dec. 312010

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.84%)

10,946202

Individuals

Foreign investors

35,655 units

175,702 units(3.72%)(18.33%)

Other domestic
corporations

83,758 units(8.74%)

Number ofinvestment units
by investor type958,250
units

Individuals

Financial institutions(including securities firms)

663,135 units

10,217(69.20%)(93.34%)(Note) The composition ratio is rounded down to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

73

51

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

74Introduction to the JPR Website

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

8955(Securities Code)JPR endeavors to conduct IR activities and information provision by offering a variety of contents on its website inorder to secure timely disclosure of information to investors and help them gain a better understanding of JPR.
In light of the societal requirements for solving social and environmental issues growing globally, JPR has renewed the
ESG initiatives pages to appropriately disclose its activity status.
Point 1
Digest of Financial
Results

Point 2

Point 3

Initiatives on ESG

Property Overview

Point 2

Point 1

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

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

At least once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant to JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

Contact by Phone

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

Listing

Tokyo Stock Exchange (Securities Code: 8955)

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