44th
Japan Prime Realty
Investment Corporation

Presentation Material
For the Fiscal Period
Ended December 2023
(Asset Manager)
Tokyo Tatemono Realty Investment Management, Inc.

Table of Contents

1. Summary of Financial Results

4

2. Operational Status and Growth Strategy

8

1. Internal Strategy

12

2. External Strategy

18

3. Financial Strategy

23

4. Sustainability

25

3. Financial Results and Operating Forecasts

29

4. Appendix

37

2

Overview of JPR■ Overview of JPR

Name

Securities code

Japan Prime Realty Investment
Corporation(abbreviated as JPR)
8955

Listing dateJune 14, 2002
(20 years since listing)End of fiscal
periodJune and December

Operational
standard of
portfolio(Targetinvestment
ratio)

Asset Manager

Sponsors(shareholding
ratio)(Ratio by area)
Tokyo 80-90%
Other cities 10-20%(Ratio by asset class)
Office 70-90%
Urban Retail etc. 10-30%
Tokyo Tatemono Realty Investment
Management, Inc.
(abbreviated as TRIM)

Tokyo Tatemono Co., Ltd. (100%)
Sole sponsor from April 2023

■ Characteristics of JPR

1（As of December 31, 2023）

A track record of stable management for over20 years
JPR has steadily expanded its asset size while enhancing thequality of its portfolio.

robust portfolio focused on office properties in
2 ATokyo
JPR has established a portfolio that is focused on office properties inTokyo, which feature growth potential, with retail properties andoffice properties in regional cities to complement profitability.

3 Superiority pipeline of a developer-sponsored REIT
JPR has exerted its superiority as a REIT sponsored by Tokyo
Tatemono Co., Ltd. to acquire properties with excellent location
characteristics centering on large-scale development projects.

of internal growth through high level
4 Realizationof operation
JPR engages in strategic leasing and has maintained a highportfolio occupancy rate.

of a financial base that is stable
5 Establishment
over the long term
JPR maintains an appropriate loan-to-value (LTV) ratio and a highand stable credit rating.
JPR has established a strong financial base by diversifying its
funding sources and repayment dates.

6 Commitment to sustainability

JPR seeks an improvement in unitholder value and contributes tothe realization of a sustainable society through the proactive
implementation of initiatives that squarely address social issues.

Asset size

67 properties 497.0 bn. yen

Ratio by asset(Area) Tokyo 84.3%(Asset class) Office 80.9%

Acquisition price and ratio of
properties from sponsor pipelines

375.2 bn. yen 75.5%

Period-average Occupancy Rate
based on concluded contracts

98.4%

Credit rating

JCR AA (stable)

R&I AA- (stable)
LTV

40.2%

■ 5 Stars, the highest mark,in GRESB Real Estate
Assessment■ CDP Climate Change Program
A (the Highest Evaluation)3

1. Summary of Financial Results

4

1. Summary of Financial
Results

1

2

3

4

Adjusted EPU for the fiscal period under review was 7,377 yen (exceeding the forecast by
97 yen), chiefly due to progress with leasing.
◼

The recovery in office market conditions was tapped into early, and the occupancy rate rose to 98.4%(climbing 0.8 points from the previous fiscal period).

◼

Having hit bottom in the previous fiscal period (7,269 yen), adjusted EPU improved (increasing 108 yen fromthe previous fiscal period).

◼

DPU is secured at 7,600 yen by applying the minimam distribution

Asset size will reach more than 500 billion yen, with the acquisition of Nakano Central
Park East in March this year.
◼

Using its relatively low leverage, JPR acquired a large high-spec building developed by the Sponsor.

◼

Asset size increased by 28.8 billion yen, growing from 497.0 billion yen to 525.8 billion yen.

◼

Progress was made strengthening the competitiveness of the portfolio in preparation for increased
polarization and selectivity in the office market and improving profitability.

Adjusted EPU forecasts for the June 2024 and December 2024 fiscal periods are 7,500 yen
and 7,520 yen respectively.
◼

Adjusted EPU is expected to increase for three consecutive fiscal periods.

◼

Achievement of the immediate adjusted EPU target of 7,600 yen is within sight.

Score in CDP Climate Change Program Assessment​​ was upgraded to the highest evaluation,
an A.
◼

JPR continued to conduct all-round activities covering environmental, social and governance topics.
5

1. Summary of Financial
Results

Financial Results for the December 2023 Fiscal Period and Operating Forecasts

June 2023
Period Result(million yen)

December 2023
Period Result

Period-on-period
comparison
Increase/
Rate of
Decrease
ChangeCompared with
forecast
Increase/
Rate of
Decrease
ChangeOperating revenue

18,173

17,411

-762

-4.2%

+15

+0.1%

Rental income-realestate

8,981

9,096

+115

+1.3%

+93

+1.0%

Operating income

8,859

8,151

-707

-8.0%

+95

+1.2%

Ordinary income

8,099

7,357

-741

-9.2%

+97

+1.3%

+97

+1.3%

±0

-%

Net income

8,098

7,356

-741

-9.2%

Distribution per unit*1

7,600

7,600

±0

-%

(yen)

June 2024
December 2024
Period Forecast Period Forecast

17,695

17,916+1.6%(period-on-period)+1.2%(period-on-period)

9,307

9,419

+2.3%
(period-on-period)+1.2%(period-on-period)

8,309

8,412

+1.9%
(period-on-period)+1.2%(period-on-period)

7,479

7,499

+1.7%
(period-on-period)+0.3%(period-on-period)

7,479

7,499

+1.7%
(period-on-period)+0.3%(period-on-period)

7,600

7,600

-%

-%
(period-on-period)(period-on-period)*1. Distribution per unit is calculated after adding or subtracting provision or reversal of reserve for reduction entry from each period's income.
Jun. ‘23 Period

Dec. '23 Period

Jun. ’24 period(Forecast)

Dec. ’24 period(Forecast)

Provision of reserve
for reduction entry

520

-

-

-

Reversal of reserve
for reduction entry

-

221

99

79

(million yen)6

1. Summary of Financial
Results

Fluctuation in Distribution per Unit

Rental revenue is expected to trend toward recovery due to progress in leasing.
Adjusted EPU is also likely to increase sharply due to the acquisition of Nakano Central Park
East.
Plus item

Minus item

(yen/unit)

Increase in rent and common charge(move-in/ move-out)+41
Increase in rent and common charge(rent revision etc.)
+18

DPU

DPU

7,269

Jun. ’23

DPU
Adjusted
EPU

7,600

7,600
Adjusted
EPU

Increase in rent and common charge(move-in/ move-out)+11
Increase in rent and common charge(rent revision etc.)+29

Decrease in rent and common charge(move-in/ move-out)-29
Increase in rent and common charge(rent revision etc.)
+8

Rents
and
commoncharge,62
etc

Utilities
expenses

Adjusted
EPU

223
120 147 Other7,377
14

Repairs andIncomemaintenanceequivalent to
expense for
In which,
restoration toasset
original
replacement
condition+27

59

Dec. ’23 period

Use ofinternal
reserves

22

45

Decrease incancellation
penalties

Jun. ’24 period (forecast)

7,600

7,600

Interest 937,500 100
cost
315
Use ofOtherinternal
reserves

Acquisition ofRents 64
53 85 Nakano
andcommonProperty Repairs andcharge,and other maintenance
etc
taxes

DPU

Adjusted
Absence of Acquisition ofincomeEPU
Nakanoequivalent to
expense for
40 56
7,520
restoration
80
Interest 59
39 75 131
cost Other
Use ofRents
internal
Repairs andandreserves
maintenancecommoncharge,etc

Dec. ’24 period (forecast)

1. Fluctuations in distribution per unit are shown as amounts calculated by dividing the amounts of changes in each fiscal period by the number of investment units outstanding as of the end of the fiscal period
preceding each such period.
2. "Adjusted EPU" is net income per unit before recording of gain (loss) on sale of real estate, etc.

7

2. Operational Status and Growth Strategy

8

2. Operational Status
and Growth Strategy

Growth Strategy

Aim for sustainable improvement in unitholder value through the continuous external growth, effective asset
replacement, and the strategic utilization of gain on transfer and retained earnings

Unitholder
value

Expand scale/Improve
quality of portfolio throughsponsor pipeline

Growthdrivers

Maintain level of distributions
and achieve growth throughcapitalization of gain on transfer
and utilization of retained
earnings

Properties acquired using
sponsor pipelines*1

Pace of expansion in asset size

Retained earnings*2✓ Total acquisition price:404.0 bn. yen✓ 2016-2019: 29.2 bn. yen✓ Total: 4.4 bn. yen✓ 2020-: 86.3 bn. yen✓ 4,430 yen per unit

→76.8% of total portfolio

Operationalframework

Achieve continuous external
growth through appropriate
LTV control

Diversified robust portfolio
focused on favorably locatedoffice properties in Tokyo

High level of operational
capability throughcollaboration with Tokyo
Tatemono, which is thesponsorCommitment to sustainability*1. Amounts and percentages indicated under "Properties acquired using sponsor pipelines" and "Pace of expansion in asset size" are estimates after the acquisition of Nakano Central Park East.
*2. Amounts and percentages indicated under "Retained earnings" are figures as of the end of the Dec. '23 period.

9

2. Operational Status
and Growth Strategy

DPU Strategy

Due to rising occupancy rate and external growth, achievement of immediate EPU target of 7,600
yen is now within sight.
Aim for further growth in distributions, with external growth positioned as main driver.
Change in Distribution per Unit and Medium-term Target
Adjusted EPU*1

Gain on transfer, etc.*2

Use of internal reserves(yen/unit)

Minimum
distribution
7,600

Immediate target

Medium-term
Target
7,800

7,600

Maintain stable
distributions
through utilizationof internal reserves

Growth drivers

7,269

'23.6
Retained earnings
per unit (yen)

4,652

7,377

'23.12
4,430

7,500

7,520

'24.6

'24.12（Forecast）（Forecast）

4,331

4,251

Continuous
external
growth+Internal
growth(period)←Ample level of retained earnings relative to other J-REITs*1. "Adjusted EPU" is net income per unit before recording of gain on sale of real estate, etc.
*2. "Gain on transfer, etc." is gain (loss) on sale of real estate, etc. less the impact of property transfer on general management expenses and retained earnings.

10

2.Operational Status and
Growth Strategy

Operational Status Summary
ResultInternal
GrowthStrategy

Occupancy rate basedon concluded contracts
Ratio of increase/decrease on rent
revision andreplacement

Dec. ’23 period

Period-onperiod
comparison

98.4%+0.8pt-1.0%-0.2pt• Arrangements for charging changed, andnet electricity expenses improved.

External
GrowthStrategy

Financial
Strategy

Asset size
Number ofproperties

Dec. ’23 period

Period-onperiod
comparison

497.0 bn. Yen-

67 properties-• Plan to acquire Nakano Central Park Eastfor 28.8 billion yen in March.

Dec. ’23 period

Period-onperiod
comparison

LTV

40.2%

-0.1ptAverage debt cost

0.76%

±0.0ptAverage maturity

4.5 years+0.1pt• Received a total green loan of 15.0 billion yen• Borrowed sustainability loans totaling 2.5 billion
yen

Sustaina
bilityCDP Climate Change Program A score(Upgraded to highest rating)
ARES ESG AWARD 2023*1
Received Good Action Award (Governancecategory)

Business environment perception

Future initiatives• The trend towards recovery in officedemand is now clearer, and the vacancy
rate has been falling continuously sincesummer last year. Rents also show signs ofhitting bottom.
• However, the market is becoming
increasingly selective/polarized according
to location/spec.

• Implement proactive leasing activities
based on accurate understanding ofchanges in the market environment,
tenant needs and area characteristics.
• Continue to monitor impact of increase in
office supply in 2025.

• The property sales market is firm.
Opportunities to acquire properties on the
open market remain limited.
• Tokyo Tatemono, which is the sponsor,
will pursue expansion of property sales toinvestors and expansion of AUM ofaffiliated REITs, etc.

• Acquire well-located properties in major
regional cities in addition to officebuildings in Tokyo, taking full advantageof the sponsor pipeline.
• Enhance the quality of the portfolio andprofitability through strategical asset
replacement.
• Also consider acquiring hotel properties inface of the clear market recovery.

• Focus is on timing of Japan's exit frommonetary easing policy.
• Meanwhile, further interest rate cuts in
Europe and the US are expected, and theinterest rate outlook remains uncertain.

• Appropriate LTV control• Exercise debt management based onawareness of soundness and costs.
• Use medium maturities, taking thediversification of repayment dates into
consideration.

• Initiatives for the realization of asustainable society from a medium- andlong-term perspective are becoming
increasingly important.

• Implement all-round initiatives covering
environmental, social and governancetopics.

*1. ARES - The Association for Real Estate Securitization11

2-1. Internal Strategy

Features of Portfolio (after acquisition of Nakano Central Park East)

JPR has built a robust portfolio diversified in terms of area, grade, asset class and rent zone, with a focus on
excellently located office buildings in Tokyo.
Ratio by grade/asset class(all properties, ratio of acquisition price)

Chuo Ward

Other cities

Retail properties

18.1%

Ratio by area(all properties, ratio of acquisition price)

6.9%
S Class

Office properties in
Other Cities

Chiyoda Ward

18.6%

11.7%

11.2%

14.8%
A Class

B Class

15.1%

Great Tokyo
outside Tokyo’s
23 wards

17.2%

9.8%
C Class18.2%
Greater Tokyo
outside Tokyo’s
6.8% 10.0%
23 wards
Land with leaseholdinterest
Tokyo’s 23 wards

4.0%
10.9%

17.1%
Tokyo’s
18 wards

9.7%

Minato Ward

Shinjuku Ward

Shibuya Ward

Diversification of grade and asset class

Well-balance regional diversification
with focus on Tokyo

Ratio by Rent Zone
(office properties, ratio of acquisition price)

Ratio by number of minutes walk from nearest
station (all properties, ratio of acquisition price)

Less than
15 thousand yen

8.1%

30 thousand
yen or more

16.3%

24.7%
15 to less than 20
thousand yen

Within3-5 minutes

12.4%

9.0%

22.0%

25 to less than 30
thousand yen
20 to less than 25
thousand yen

38.5%

Within5-10 minutes

75.6%

Focus on office buildings in rent zone 15 toless than 20 thousand yen per tsubo, which
are in highest demand

16.5%

Directly linked

Within
1 minute

Within
1-3 minutes

24.9%

27.5%
69.0%

About 70% of properties are located within a
3-minute walk of the nearest station

1.Ratio by Rent Zone (office properties, ratio of acquisition price) figures do not include Grand Front Osaka and are calculated using average unit rent as of the end of December 2023 for Nakano Central Park East.

122-1. Internal Strategy

Diversification of Portfolio

Build a stable portfolio with good investment ratio diversification.
Diversification of tenants was achieved through tenant replacement, with no office tenants with occupancy of
1.0% or more.
Tenant diversification (based on end users byproperty; as percentage of area)

Investment ratio diversification
12.0%

1.5％ on average

End of Dec. ’19 period

OfficeRetail properties
with 1.0% or more

Land with leasehold interest

Less than 1.0%
Tenants
65.7%

Retail properties
10.0%

NOI yield

1.0% or more Office Tenants

Portfolio mostly consistsof properties in whichinvestment ratio is 3.0%
or less

8.0%

6.0%

2.0%

Yakuin Business
Garden

A company

1.3%

Rise Arena Bldg.

B company

1.3%

Olinas Tower

C company

1.1%

JPR Nagoya
Fushimi Bldg.

D company

1.0%

Total

Olinas Tower

End of Dec. ’23 period

4.0%

Sponsors, etc.
with 1.0% or
more

The Otemachi Tower

Shinjuku Center (Land with leasehold interest)
Bldg.
↑
JPR owns the land with
Nakano Central leasehold interest, andrevenue is extremely
Park East
stable.

Less than 1.0%
Tenants
74.9%

Retail properties
with 1.0% or more
23.5%

4.6%

Reduced tenantconcentration risk
through replacement ofoffice tenants

Sponsors, etc. with
1.0% or more
1.6%
1.0% or more Office Tenants

0.0%
0.0%

None
2.0% 3.0% 4.0%

6.0%

8.0%

10.0%

Investment ratio
1. The NOI yield for existing properties is based on book value, and the appraisal NOI yield for Nakano Central Park East is based on acquisition price.
2. Investment ratio diversification figures reflect the acquisition of Nakano Central Park East.

13

Occupancy Status

2-1. Internal Strategy

Occupancy remains at a high level.
Occupancy rate (the average occupancy rate as of the end of each month)

Major Move-Ins/Move-Outs■’24.6

Occupancy rate based on concluded contracts

99.4%

99.1%

■’23.12Move-outs

98.2%

97.4%

96.9%

95.8%

97.8%

97.0%

97.6%

95.1%

95.5%

96.4%

'22.6

'22.12

98.4%

97.7%

Move-ins

97.1%

96.7%

-1,757

Olinas Tower

（㎡）

'21.6

'21.12-214

JPR Yokohama Bldg.

'23.6'23.12

'24.6

（㎡）

97.6%

3,922
November 2024
move-ins

98.4%

10,00097.7%

Move-in spaces

Occupancy rate

Move-out spaces

Move-out rate

（%）

4.2

20,00097.0%-9,805-4,234

Status of move-ins and move-outs

Occupancy rate of business districts in Tokyo

97.8%

1,266
547 542

MS Shibaura Bldg.

Occupancy rate based on concluded contracts

96.9%

2,124

(period)

Comparison with market occupancy rate

98.2%

701

-621 952 813-813

Shinjuku Square Tower(Forecast)

99.4%■’24.6 (period)

Occupancy rate based on generated rents

JPR Harajuku Bldg.

'20.12■’23.12

1.0

2.5

2.6

1.6

2.5

6

1.7

1.5

3

0
96.3%

'20.12

94.5%

'21.6

93.6%
'21.12

93.6%
'22.6

93.6%
'22.12

93.7%

'23.6

-10,000
93.8%'23.120-1.3-20,000
'24.6

-3.8

-2.9

-3.9

-2.5

-3

-1.2

-6

-3.6

Impact of MS Shibaura Bldg.
move-outs: -2.1

(period)(Forecast)-1.8'20.12

1. Only figures for occupancy rate based on concluded contracts include Grand Front Osaka.
2. Occupancy rate of business districts: Averaging figures published by Miki Shoji Co., Ltd in each month that belongs to the JPR’s relevant fiscal period.

'21.6'21.12'22.6'22.12'23.6'23.12'24.6(period)(Forecast)

14

Status of Rent

2-1. Internal Strategy

The contracts with most of the tenants have been renewed without a downward revision.
The frequency of increases in rent on tenant replacement has also begun to rise.
Ratio of Increase/Decrease on Rent Revision/
Tenant Replacement (% of Total Contracts)

Monthly Rent Revision Increase/ Decrease
Upward revision(tenant replacement)

Upward revision(existing tenant)(million yen)

Downward revision(existing tenant andtenant replacement)

40

20■ Tenant replacement

Upward revision
Decrease in rent

(period)

No change

Upward revision
Decrease in rent

No change'21.12

17.9

80.2

1.9

39.6

16.7

43.8

8.4

'22.6

15.8

82.6

1.6

45.8

8.5

45.8

-5.3

'22.12 12.1

85.5

2.4

32.4

83.5

3.8

28.6

6.6
16.1

0

■ Rent revision

-6.1

2.9

3.7

6.7
-6.8

-6.1

4.3

1.3
1.7
-3.6

0.8
2.9

2.7
0.8

-9.7

-9.0

17.6

50.0

-20

-40
'21.6

'21.12'22.6'22.12'23.6'23.12'24.6 (period)

'23.6

12.6

'23.12

6.0

89.0

0

50

4.9

40.0

16.7

54.8

10.0

50.0

(Forecast)

Average free rent period

100 (%) 0

50

100 (%)

Status of gap in rent (Office）（month）（%）

6

Impact of very longterm contracts

4

0.3

2

3.7
2.4

3.5

4.3
2.7

'21.12'22.6'22.12

'23.6

+2.0

+1.4

+1.3

'22.12

'23.6

+0.7

+0.0

3.4

0
'21.6

+4.0

'23.12 (period)

-2.0

-4.0

-0.6

-0.6

-0.4

'21.6

'21.12'22.6'23.12(period)

1. Rent gap figure is only figure including Grand Front Osaka.
2. Forecast of monthly rent increase/decrease (forecast increase) for Jun. ’24 period is sum total of upward or downward revisions and increases or decreases in rent upon tenant replacement.

15

Leasing Status of Properties Requiring Priority Action

2-1. Internal Strategy

Vacancies have been being filled steadily. Seek to fill the vacant space of MS Shibaura Bldg. quickly
by implementing flexible leasing activities
Properties for which leasing activities are being stepped up
MS Shibaura Bldg.

CentralTokyo

OfficeLeasable area

1,779 tsubo(Ratio in portfolio)（1.2%）

・ A large building with 600 tsubo per floor, located an 8-minute
walk from JR Tamachi Station.
・ Although the occupancy rate is expected to fall to 32.2% withthe move-out of multiple tenants (approx. 3,000 tsubo), 2 floors(approx. 1,200 tsubo) will be filled quickly.
・ Strengthen property competitiveness through large-scalerenovations (installation of LED lighting, improvements to air
conditioning and common areas).
・ Seek to fill the vacant space quickly by implementing flexible
leasing activities
Dec. '23

Jun. ‘24

Nov. ‘24

100%

32.2%

59.3%

Properties for which leasing has been completed
Olinas Tower

Greater Tokyo

OfficeShinjuku Square Tower

・ This integrated office, retail, andJPR Harajuku Bldg.

・ Multi-purpose redevelopment projectsituated among the skyscrapers

building in the Kinshicho area.

clustered in Nishi-Shinjuku

situated on Meiji-Dori Avenue.
(approx. 800 tsubo), causing theoccupancy rate to fall to 44.4%.

・ The occupancy rate has increased, and・ Although a tenant moved out of one

Office・ Tenants moved out of 5 floors

the building’s competitiveness.

grade feel.

Central Tokyo・ Office building with high visibility

・ Renovate common areas to strengthen

the area in terms of size and high-97.0%

Officeresidential development is a landmark

・ Stress that the property is the best in

Aug. '23

Central Tokyo

・ Filling the vacant space quickly due

the building has become a multi-tenant

floor (531 tsubo), vacant space wasto success in increasing valuebuilding following existing tenants'

filled quickly by capturing demand forthrough renovation work on

expansion of floor space and multiple

relocation from neighboring areas.

common areas and robust office

new tenants moving in.

demand in the area.

Apr. ‘24

89.6%

Jul. ‘24

Jun. '23

Feb. ‘24

Jun. ‘24

98.4%

96.7%

95.2%

98.5%

Mar. ‘23

Aug. '23

Feb. ‘24

44.4%

88.6%

100%
16

Retail Property

2-1. Internal Strategy

Maintain high occupancy, with long-term fixed rent as the basic format.
Sales also recover as economy returns to normal.
*1
Changes in sales at main retail properties(compared with same month in 2019)
Average occupancy rate (Retail properties)
FUNDES Ueno

150%

99.3

（%）

99.9

99.5

99.7

99.5

FUNDES Suidoubashi

Kawasaki Dice Bldg.

99.6

131%
124%

100.0
100%

87%

90.0

50%

0%

80.0

'21.6

'21.12'22.6'22.12'23.6'23.12（period）

Status of lease contract (Retail properties, Space ratio)
Tenant sectors
3.0%

4.7%
Fixed rent
andcommission

Other
3.6%

Commission
0.7%

Retail90.4%

2023.12 2024.1（year/month）

Main retail properties

Fixed
rent
94.5%

JPR Shibuya
Tower Records Bldg.

Remaining contract period
2 years or more andless than 3 years

12.1%
4.6%
83.4%
3
years
or moreOrdinarybuilding lease and less than 5Less than 2
years
15.4%

5 years or
more

67.9%

JPR Chayamachi
Bldg.

JPR Ginza Namikidori Building

FUNDES
Tenjin Nishidori

FUNDES Ueno

Station-front
type

Fixed term Type of rent
building lease
16.6%

2021.12 2022.6 2022.12 2023.6

Urban type

3.0%

2020.12 2021.6

Type of rent

Services
Bars &
restaurants

2020.6*1. Stores that are continuously open during the target period are counted.

Kawasaki DICE Bldg.

Tanashi ASTA

JPR Musashikosugi
Bldg.

Housing Design Center
Kobe

years

17

2-2. External Strategy

Summary of Newly Acquired Property

Nakano Central Park East（Ownership interest 53.0%） Greater Tokyo

OfficeBased on information provided by sponsors

Using its relatively low leverage, JPR acquired, with its sponsor's support, a high-spec building in front of Nakano
Station developed by Tokyo Tatemono.
Acquisition Highlights◼ Located a five-minute walk from Nakano Station, which is on the JR Chuo and Sobu Lines andTokyo Metro Tozai Line. Situated beside Nakano Shiki no Mori Park, the office space looks out on ahuge expanse of open greenery, incorporating the surrounding environment through the integrated
development of the park with public spaces.
◼ Nakano Central Park East is an earthquake-resistant, high-spec building developed by Tokyo
Tatemono together with Nakano Central Park South as an integrated urban space, and it also
boast high performance from a BCP perspective.
◼ With Tokyo Tatemono involved in all aspects from development through to area management andcommitted to revitalization of the entire area on an ongoing basis, this is a prime flagship property
developed by the Sponsor.
◼ Multiple large-scale development projects are underway in the Nakano Station area, which is
expected to become more competitive as an office district. A new ticket gate is also going to beestablished, reducing the distance from the station to a three-minute walk and further increasing
the property's convenience.

Map of Surrounding Area
■ Proximity to Nakano Station andfavorable location
Acquisition date

March 1, 2024

Acquisition price28,800 million yen

Appraisal value

30,100 million yen

Total rentable area
/ floors

13,523.68㎡/
B2/10F

Type of Ownership

Land: Ownership (quasi-coownership interest of 53.0%)
Building: Ownership (quasi-coownership interest of 53.0%)

building age

12 years

NOI yield

3.2%

After-depreciation
yield

2.8%

Occupancy rate

92.8%

SellerIntegrated area developmentby Tokyo Tatemono■ Integrated development of the area
including Nakano Central Park South

Non-disclosure18

2-2. External Strategy

Summary of Newly Acquired Property

Multiple large-scale development projects are underway in the Nakano Station area, which is expected
to become more competitive as an office district.
By 2026, the property will be even more convenient, with the entry into operation of Nakano Station's
new ticket gate and the construction of a pedestrian deck.
Illustrative map of the redevelopment of the Nakano area *Nakano Central
Park East

1

Approach to the property from plannedpedestrian deck*1
Nakano Central
Park East

Pedestrian Deck

Approach to planned pedestrian fromentrance to the property*1*1. Prepared by TRIM based on publications of Nakano Ward19

Acceleration of pace of property acquisitions utilizing sponsor pipeline

2-2. External Strategy

The pace of expansion in JPR‘s asset size accelerated, partly due to the Medium-Term Business Plan of Tokyo
Tatemono, which is the sponsor.
Asset size will reach more than 500 billion yen
Tokyo
TatemonoCo., Ltd.

2015-2019
Tokyo Tatemono's previous Medium-Term Business Plan

2020-2024
Tokyo Tatemono's current Medium-Term Business Plan

Further expansion of Group AUM and profit opportunities

Key Strategies (excerpt)
Expand property sales toinvestors

Total investment amount 150.0 billion yen (as of the end of *1
December 2023)*1

Strengthen fund business

AUM, including affiliated REITs, of 1.5 trillion yen (forecast of ‘24)

Changes in asset size

Growth from 2020: 86.3 billion yen(100 million yen)(Acquisition: 113.3 billion yen Sale: 26.9 billion yen)

5,500

5,258

2016-2019
Growth between 2016 and 2019:29.2 billion yen

5,000

4,848

(Acquisition: 41.4 billion yen Sale: 12.2 billion yen)

JPR

4,571
4,500

4,350 4,350 4,350 4,350

4,922 4,887

4,970 4,970

4,675 4,656

4,395 4,395

4,214
4,103 4,103
4,000

3,500
Dec. '15
PeriodJun. '16 Dec. '16 Jun. '17
PeriodPeriodPeriodDec. '17 Jun. '18 Dec. '18 Jun. '19
PeriodPeriodPeriodPeriodDec. '19 Jun. '20 Dec. '20 Jun. '21 Dec. '21 Jun. '22
PeriodPeriodPeriodPeriodPeriodPeriodDec. '22
PeriodJun. '23
PeriodAfter

Dec. '23 acquisition
Period of Nakano*1. Balance of real estate for sale except for logistics properties in commercial properties business of Tokyo Tatemono Co., Ltd. (Total investment amount)202-2. External Strategy

Continuous implementation of asset replacement strategy

Achieve realization of unrealized gains and improvement in portfolio quality through strategic asset replacement
2020
Property to beacquired

JPR
Shinsaibashi West3.75 billion yen

2021

Sencity Bldg. Otemachi Financial
City North Tower

13.87 billion yen

11.4 billion yen

Rise Arena Bldg.
(Additional
ownership)

7.3 billion yen

21.3 billion yen

2024

Shinjuku Center
Bldg. (Additional
ownership)

JPR
DojimaWest

FUNDES Tenjin
Nishi Dori

Ochanomizu
Sola City

Nakano Central Pak East

3.3 billion yen

2.4 billion yen

3.3 billion yen

6.4 billion yen

28.8 billion yen

11.3 billion yen

Asset
資産 replacement
入替

Asset
replacement

2023

2022
Tokyo Tatemono
Grand Front Osaka Higashi-Shibuya
Bldg.

Asset
replacement

資産
入替

Asset
replacement

Assets transferred

JPR Hakata Bldg.

Tokyo Tatemono
Honmachi Bldg.

JPR Umeda Loft Bldg.

Gotanda First Bldg.

JPR Crest
Takebashi Bldg.

Building age 36
years

Building age
52 years

Building age
32 years

Building age
33 years

Building age
24 yearsContinue strategic asset replacement

Effect of asset replacement since 2020

◼ Create a strong portfolio through continuous asset replacement◼

◼ Capitalize gain on transfer through realization of unrealized gain and expand

retained earnings

JPR

Strategic sales⚫ Improve portfolio quality(including reducing averagebuilding ages, enhancing earningpotential and improving location)⚫ Capitalize gain on transfer
through realization of unrealized
gain and expand retained
earnings⚫ Acquire prime properties at areasonable price

Main sponsor(Tokyo Tatemono)⚫ Tap into needs to acquire

Asset
replacement

Acquisition ofprime properties

redevelopment properties⚫ Step up property sales toinvestors⚫ Expand group earning
opportunities bystrengthening fund businessincluding affiliated REITs

Expanded size of assets and also achieved improvement in portfolio quality andexpansion in retained earnings.
Expansion in size of
assets *1

Improvement in
NOI*2

Gain on transfer
posted *3+86.3 billion yen+3.0 billion yen

5.5 billion yen

Expansion ofretained earnings*4+3,684 yen/unit

Rejuvenation of
portfolio *5
Assetstransferred

34 years

Property to beacquired

16 years*1. Based on a comparison of asset size at the end of the December 2019 fiscal period and estimated asset size after the acquisition of Nagano
Central Park East.
*2. Calculated by deducting total appraised NOI at the time of transfer of assets transferred since 2020 from total appraised NOI at the time ofacquisition of assets acquired since 2020.
*3 This is the figure obtained by subtracting the loss on the sale of real estate from the gain on the sale of real estate from 2020 onward.
*4. Based on a comparison of retained earnings at the end of the December 2019 fiscal period and the end of the December 2023 fiscal period
respectively.
*5. Based on average building age calculated by averaging building ages as of the acquisition date in the case of acquired assets and the transfer
date in the case of transferred assets and weighting the average based on the acquisition price.

21

Sponsor Pipeline

2-2. External Strategy

Actively take advantage of sponsor pipeline to expand acquisition opportunities
Tokyo Tatemono's pipeline

Utilization of sponsor pipelines

Real estate for long-term ownership reclassified as real estate for sale

■ Breakdown of owned properties by seller *1■Properties reclassified as real estate for sale
Between the end of December 2018 and the end of December 2023:
Approx. 54.0 billion yen■Properties acquired by JPR
JPR Kojimachi Bldg.

5.75 billion yen

Acquired June 2019

JPR Shinsaibashi West3.75 billion yen

Acquired January 2020

Otemachi Financial City North Tower

11.4 billion yen

Acquired December 2020

Grand Front Osaka

21.3 billion yen

Acquired December 2021

Tokyo Tatemono Higashi-Shibuya Bldg.

11.3 billion yen

Acquired January 2022

Properties acquired otherthan from sponsors
121.7 billion yen

23.2%

Properties
acquired basedon information
provided bysponsors
121.3 billion yen

53.8%
23.1%

Properties
acquisition fromsponsors
282.6 billion yen

Properties
acquired using
sponsor pipelines

76.8%*1. The number is estimated asset size after the acquisition of Nagano Central Park East.

Real estate for sale developed/acquired on the assumption of sale

■ Medium-sized office
T-PLUS Sapporo

December 2023

Completed

T-PLUS Sendai

January 2024

Completed(Tentative name) Shibaura 4chome Office Building Project

January 2024

CompletedFebruary 2024

To be completed■ Top 6 portfolio properties■ Urban compact retail properties
FUNDES Kamata■ Urban hotel
Candeo Hotels Tokyo Roppongi

September 2017

Completed

The Square Hotel Ginza

August 2018

Completed

Hotel Gracery Asakusa

September 2018

Completed

March 2021

Completed

Candeo Hotels Kyoto Karasuma
Rokkaku■ Properties acquired by JPR
FUNDES Suidoubashi

3.25 billion yen

Acquired December 2016

FUNDES Ueno

3.8 billion yen

Acquired June 2019

FUNDES Tenjin Nishi Dori3.31 billion yen

Acquired January 2023

Osaka Dojima Bldg.

2.46 billion yen

Acquired January 2023

Otemachi Tower (Landwith Leasehold Interest)
36.0 billion yen

Olinas Tower
31.3 billion yen

Nakano Central Park East
28.8 billion yen *1

Shinjuku Center Bldg.
24.3 billion yen

Grand Front Osaka
21.3 billion yen

Tokyo Square GARDEN
18.4 billion yen

All properties developed by Tokyo Tatemono*1. Plan to acquire on March 1, 2024.

22

2-3. Financial Strategy

Financial Status

Exercise appropriate LTV control and debt management based on awareness of soundness and costs.
Debt procurement results in the Dec. ‘23 fiscal period(short-term loans excepted)
Beforerefinancing
Amount raised

Funding

Increase/
Decrease

13.0 billion yen 18.5 billion yen +5.5 billion yen

Diversification status of repayment dates （as of February 16, 2024）
200（100
millionyen）

Long-term loans payable

Investment corporation bonds

New debt procurement (Dec. '23 fiscal period)

150

6.6 years

6.7 years+0.1 years

100

45

40 50

30

60

85

Average debt interest
rate

0.61%

0.92%

+0.31pt

130

50

70 80

Status of interest-bearing debts
Jun. ’23

Dec. ’23

Interest-bearing
debt

205.4
billion yen

205.4
billion yen±0 billion yen

book value

40.3%

40.2%

-0.1ptappraisal value

32.4％

32.2%

-0.2ptAverage maturity

4.4 years

4.5 years+0.1 years

Average debt cost

0.76%

0.76%

±0.0ptLTV

110 100 102

109 100

0

85

Change in LTV

70
10

96 90

110

60 50 1420

10
10100.0%+2.7pt※LTV after acquiring Nakano is assumed to be 43.0% based on book value and 34.6%
based on appraisal value

Status of rating

45

Debt acquisition capacity:
Approx. 19.0 billion yen

43

43.0
41.7

40.0

40.0

'21.12'22.6'22.12

40.3

40.2

'23.6

'23.12(period)

Initiatives in response to rising interest rates
Appropriate LTV

JCR

R&I

AA （Stable）

AA- （Stable）

10

Control, aiming for maximum LTV of 40-45%

(%)

39

97.3%

30

(period)41

Ratio of long-term,
fixed interest rate
debts

148

40

Period-onperiod
comparison

Commitment limit
24.0 billion yen

20
30

Average maturity

New debt procurement (Jun. '24 fiscal period)

10

Use of medium
maturities

Shift to long-term, fixedinterest rate debt

*1
After
'24.6
acquisition of
NakanoDiversification of
repayment dates

Reduction of costs through negotiated borrowing
with all lenders*1. The assumption is that we will borrow 28 billion yen to fund the acquisition of Nakano Central Park East.

23

2-3. Financial Strategy

Diverse Status of Lenders (as of December 31, 2023)

Diversifying fund procurement sources with a lender formation comprising 39 financial institutions and throughissuance of investment corporation bonds
Cost control through negotiated debt procurement
Sumitomo Mitsui Trust Bank, Ltd.

1.0

Mitsui Sumitomo Insurance Company, Ltd.

1.0

Hiroshima Bank, Ltd.

1.0

The Hyakugo Bank, Ltd.

1.0

Tokio Marine & Nichido Fire Insurance

1.0

The Chiba Bank, Ltd.
Daido Life Insurance Company

Name
Mizuho Bank, Ltd.
24.0
Investment

1.0Green loan 1.0
1.0
Green loan 1.0

Daishi Hokuetsu Bank, Ltd.

corporation bonds
35.9

1.0

The 77 Bank, Ltd.

(Of which sustainability loan 0.6)
(Of which green loan 1.0)

1.0

The Keiyo Bank, Ltd. 【New】

Green loan 1.0
1

The Gunma Bank, Ltd. 【New】

Green loan 1.0
10Bank of Kyoto, Ltd.

(Breakdown of investment
corporation bonds)

MUFG Bank, Ltd.
21.0

1.0
（Of which sustainability loan 0.5）
10Kansai Mirai Bank, Ltd.

Interest-bearing
Sumitomo Mitsui
Banking Corporation
debt
15.0
205.4 bn. yen

1.0

The Ashikaga Bank, Ltd. 【New】

Green loan 1.0
10

Resona Bank, Ltd.

2.0

The Yamanashi Chuo Bank, Ltd.

2.0

Development Bank ofJapan, Inc.
10.9

The Yamagata Bank, Ltd. 【New】 Sustainability loan 2.0
20
The Hachijuni Bank, Ltd.

2.0

Nippon Life Insurance Company

Green loan 2.0
2.0

Sompo Japan Insurance Inc.

Green loan 2.0
2.0

The Kiyo Bank, Ltd.

2.0

The Iyo Bank, Ltd.

2.0

SBI Shinsei
Bank, Ltd.
10.0

(Of which green loan 1.0
Yamaguchi Bank, Ltd.

3.0

The Chugoku Bank, Ltd.

3.0

(Of which green loan 2.0
Taiyo Life Insurance Company

3.0

The Nishi-Nippon City Bank, Ltd.

3.0

The Shinkumi Federation Bank

4.0

Shinkin Central Bank 7.0
Meiji Yasuda Life
Sumitomo Life Insurance Company 4.2
Insurance
Company
4.0

Aozora Bank, Ltd. 6.4

The Bank ofFukuoka, Ltd.
6.0

The Norinchukin Bank 7.0

Mizuho Trust & Banking Co., Ltd. 7.0

Amount7th series of bonds

4.5

19th series of bonds

5.0

21st series of bonds

4.0

22nd series of bonds

3.0

23rd series of bonds

3.0

24th series of bonds(Green bond)25th series of bonds(Green bond)26th series of bonds
27th series of bonds(Sustainability Bonds)
28th series of bonds(Green bond)

5.0
6.0
3.0
1.4
1.0

(Status of commitment line)
LenderCreditlimit

Mizuho Bank, Ltd.

4.0

MUFG Bank, Ltd.

4.0

Sumitomo Mitsui
Banking Corporation

4.0

Mizuho Trust &Banking Co., Ltd.

4.0

Aozora Bank, Ltd.

4.0

Resona Bank, Ltd.

4.0

Total

24.0

24

2-4. Sustainability

Sustainability Initiatives

Commit to sustainability for the long term.
Actively implementing sustainability initiatives for diverse stakeholders based on Sustainability
PolicyJPR Initiative- Mar. 2019 Began issuing Sustainability Report.
- Jul. 2020 Participated in CDP Climate Change Program.
- Dec. 2020 Acquired BELS certification for the first time.
- Jan. 2021 Determined materiality (JPR/TRIM).

TRIM Initiative- Jan. 2023

Updated materialities (JPR/TRIM).

- Apr. 2023

Achieved certification by SBTi
(GHG emissions reduction target for2030 and net zero emissions target
for 2050)
Conducted transition risk analysis
using CRREM
ARES ESG AWARD 2023
Received Good Action Award,
Governance Category
Selected as CDP Climate Change "A List"
company for the first time
Reviewed green certification acquisition
rate targets (2030 and 2050 targets)- Jun. 2023

- May. 2021 Included in MSCI Japan ESG Select Leaders index.
- Aug. 2021 Set target of reducing GHG emissions to net-zero.

- Jan. 2024
- Feb. 2024

- Apr. 2019 Established Sustainability Committee.
- May 2019 Became a signatory of PRI (Principles of
Responsible Investment).
- May 2021 Declared support for TCFD.
- Jul. 2021 Enacted Human Rights Policy.
- Jul. 2021 Enacted Sustainable Procurement Standards.

- Feb. 2024

- Feb. 2023
- Aug. 2023

2005

2019

- Aug. 2005 Launched Tenant Satisfaction Survey.
- Jan. 2006 Formulated brand strategy.
- Oct. 2006 Launched Best Performance Award.
- Aug. 2011 Acquired DBJ Green Building Certification
for the first time.
- Sep. 2013 Achieved "Green Star" status for the firsttime in GRESB Real Estate Assessment.

- Jun. 2018 Acquired CASBEE for Real Estate
Certification for the first time.

2022

Externally recruited special committee
member (real estate appraiser) to
Investment Committee.
Set 2030 target for percentage offemale managers

2023- Sep. 2022 Acquired ZEB certification for the first time.
- Nov. 2022 Established GHG emission reduction plan andsubmitted to SBTi.
- Jan. 2022 Welcomed outside advisor to Sustainability
Committee.
- Feb. 2022 Became signatory to the Principles for Financial
Action for the 21st Century.

- Dec. 2015 Launched Employee Satisfaction Survey.
- Apr. 2017 Launched employee awards program.
- May 2017 Enacted Sustainability Policy.

25

2-4. Sustainability

External Evaluations and Initiatives

Focus on increased acquisition of external evaluations and improving evaluations
and becoming a signatory to/supporting initiatives.
Topic

External Evaluations
GRESB Real Estate
Assessment

Received the Good Action Award in the
Governance Category in the ARES ESG
Award 2023 - award program establishedby the Association for Real Estate
Securitization to promote ESG initiatives of
J-REITs

5 Stars（the highest mark）(Details)
Received award in recognition of initiativeof inviting external experts to meetings of
Sustainability Committee, Investment
Committee, Risk Management Committee
and Compliance Committee. Commended
for implementing this initiative for multiplecommittees at a time when it is not easy
to select appropriate candidates who
understand J-REITs and can give advice.

for fifth
consecutiveyear

CDP Climate
Change Program

MSCI ESG Credit Rating*1

A（the Highest
Evaluation）

Rank upto A score*1. JPR's use of data produced by MSCI ESG Research LLC or its affiliates ("MSCI") and JPR's use of MSCI logos, trademarks, service marks orindex names do not constitute a sponsorship, guarantee, recommendation, or promotion of JPR by MSCI. MSCI's services and data are
the property of MSCI or the entity providing such information and are provided "AS IS" without warranty of any kind. MSCI's names andlogos are trademarks or service marks of MSCI.

Green certification

Initiatives
PRI

TCFD

SBTi

（Principles of Responsible
Investment）（Task Force on Climate-related
Financial Disclosures）(Science Based Targets initiative)

United Nations Global
Compact
Participated as
the Tokyo
TatemonoGroup(Signed by Tokyo
Tatemono)Principles for Financial
Action for the 21stCentury

CASBEE Certification
Certification
42
properties

BELS certification and
ZEB certification
Certification
4
properties
1 property
certified as

ZEB Oriented(JPR Omiya Bldg.)

DBJ Green Building
Certification

Certificationacquisition rate
（ 4-star/"A" rating or higher ）Certification
14
properties

77.4％
26

Environment

2-4. Sustainability

2030 target of an environmental certification acquisition coverage rate of 80% or more
(4-star/"A" rating or higher) is expected to be achieved ahead of schedule.
Review of green certification acquisition rate target◼

Environmental performance data

Review of 2030 target and setting of 2050 target for first time

エネルギー消費量(MWh)Energy consumption (MWh)(t-CO₂)(MWh)

Before change(%)

Green certification acquisition rate

140,000

122,803100

2030 target: Certificationacquisition rate of 80％ or more
(4-star/"A" rating or higher)

77.4

80

70.5

70

2030 target: Certificationacquisition rate of 90％ or more
2050 target: Certificationacquisition rate of 100％40

(4-star/"A" rating or higher)

40.2

68,962*1

40,00020,000

30
20
0

0
2020

2021

2022

2023 (year)

Introduce environmental management system (EMS)
Seek to ensure objectivity and transparency through third-party verification and advice

Review climate change risks and opportunities and reanalyze
quantitative and qualitative assessments
Review risk and opportunity items in response to the changing external environment, andreanalyze their impact including quantitative data and consider measures to address risks
and opportunities◼

70,56960,000Future initiatives◼

74,931

61,088

49.3

2019

2020

2021

2022

(year)*1. Figure is different from that in the presentation material for the 43rd fiscal period ended June 2023 as a resultof third-party assurance.

*1. The overall acquisition rate of environmental certification was 89.4% as of December 31, 2023.

◼

128,154

100,000
80,0006050

122,106

119,712120,000

90

After change

GHG排出量(t-CO₂)
GHG emissions (t-CO2)

Progress of switch to LED◼

Making progress steadily in exclusively owned areas as well as
common areas. Will actively continue to switch to LED lighting.
Exclusively owned areas(%)

Common areas

100
80

86.1

90.0

60

40

Start considering renewable energy procurement strategy

20

Consider establishing feasible renewable energy procurement strategy according toportfolio characteristics

0

49.1

2021

59.2

2022

94.1
69.8

2023

(year)

27

2-4. Sustainability

Social and Governanve

Implementing initiatives for PMs and BMs, aiming for qualitative improvement in the level ofmanagement.
Implementing initiatives to create an inclusive workplace environment at TRIM.
Initiatives for PMs and BMs

Effectiveness of governance in related party transactions

JPR Best Performance Award 2023◼

Property acquisitions

Board of Directors

Provided PM and BM training on the topic ofwaste to promote the recycling rate.

Approval

Related party
transactions

Investment Committee◼

Due diligence subcommittee

Provision of PM and BM training

Compliance subcommittee(JPR Shinsaibashi Bldg.)

Investment Management
Department(Reasons for the award)
Was highly rated across-the-board in tenant, PM and TRIM
evaluations and also demonstrated outstanding BM skills
during renovation work.

Deliberation

JPR’s Board of Directors

Implement the "JPR Best Performance Award"
every year based on the results of the Tenant
Satisfaction Survey and the recommendationsof the PMs
Won by JPR Shinsaibashi Bldg. in FY2023.

Special committee members with real estate appraisal qualifications
are recruited for the Investment Committee and the unanimous
approval of all committee members including the special committee
members is required for property sales transactions with relatedparties.

Compliance Committee◼

◼

Other transactions

External recruitment of special
committee member with realestate appraisal qualifications on
property acquisition and sale

Providing diversity training and seeking toincrease literacy of all officers and employees(Training provided)・ Diversity training (all employees including officers)
・ Career design training (female employees)
・ Diversity management training (officers and managers)

Conclude agreement◼

Reporting(Other systems)
・ Short working hour system
・ Sick/injured child care and family care leave
・ Flextime

Deliberation(acquisition decision)

Introduced a telework system as part of initiatives to provide anenvironment that makes it easier for employees juggling childcare,nursing care or other responsibilities to continue working.

Confirmation of due
diligence results /Verification ofsolutions/improvement
measures◼

Review,screening

TRIM's workforce initiatives

Planning(PM and BM training)

1.

(Diversity management training)2.

In addition to the above, there may be cases where approval by the Board of Directors and consent by JPR are required, as
designated in the Investment Trusts Act.
The chart shows the general decision-making mechanism. Depending on the nature of the proposed acquisition, the order ofthe procedures may change or certain meetings may not be held.

28

3. Financial Results and Operating Forecasts

29

Overview of Financial Results for the 44th Fiscal Period (Dec. ‘23)
(period-on-period comparison)

3.Financial Results andOperating Forecasts

Results of the 44th fiscal period ended Dec 2023 DPU:7,600 yen (± 0 , period-on-period)
The absence of gain on sale of property was offset by an increase in rental revenue (rising 115
million yen from the previous fiscal period), mainly due to progress with leasing.
Jun. '23Period

Dec. '23
PeriodChangeDPU (yen) (per unit)

18,173
17,291
881
9,314
8,310
1,003
8,859
37
797
8,099
8,098
520
7,600

17,411
17,411
9,259
8,315
944
8,151
13
807
7,357
7,356
221
7,600

-762
+119
-881
-54
+4
-58
-707
-24
+9
-741
-741
-520
+221
+0

Number of units outstanding

997,178

997,178-

Item
Operating revenue
Rental revenue
Gain on sale of property

Operating expense
Revenue
Expenses related to rent businessand profit
Selling, general and adminisutrative expenses(million
Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Transferred from reserve

Reserve (million yen)

Reversal amount of reserve

Item
Rental revenue
Rental revenue
Rents and common charge⑤

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation

Rental revenue (existing properties)① [Rent and common charge] Increased mainly due to progress in leasing activities②[Cancellation penalty income and income equivalent to expense for restoration] Increased
as a result of agreed cancellation with tenant

Expensesrelatedtotorent
rentbusiness(existingproperties)
Expenses related
business(existingproperties)④[Utilities expense]of ofutilities(② (③- ④)- ④)
improved④[Utilities
expense]Balance
Balanceutilities
improved

Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Jun. '23Period Dec. '23Period

17,291
16,146
13,948
1,801
396
1,145
1,001
17
59
66
8,310
707
1,285
2,594
29
433
312
637
2,044
265
11,025
4.8%
8,981
3.9%
97.6%

17,411
16,216
14,020
1,801
394
1,195
988
10
128
67
8,315
711
1,150
2,581
30
578
315
640
2,057
248
11,153
4.7%
9,096
3.9%
98.4%

ChangeReplaced *1
properties

Existing
properties※2

+22
+12
+13
-1
+10
-0
+10
-4
+0
-2
-5
+0
-0
-0
-0
+5
+26

+97
+58
+58
-0
-0
+39
-12
-7
+69
-9
+8
+3
-132
-6
+0
+146
+3
+2
+12
-21
+101

+26

+88

+119
+70
+71
-0
-1
+49
-12
-7
+69
+0
+4
+4
-134
-12
+0
+145
+2
+2
+12
-16
+127
-0.1pt+115- pt+0.8pt①③②④*1. Increase or decrease as a result of replacement of the following assets is calculated.
Jun. '23 period: Acquisition of Ochanomizu Sola City
Sale of JPR Crest Takebashi Bldg.
*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ④).

30

3.Financial Results andOperating Forecasts

Overview of Financial Results for the 44th Fiscal Period (Dec. ‘23)
(period-on-period comparison)
Increase or decrease in cash and deposits

Item
Current Asset
Cash and deposits (including trust)
Other current asset

Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets

Deferred assets
Investment corporaton bond issuance costs

Investment unit issuance expenses

BalanceSheet(millionyen)

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of investments corporation bonds

Other current liabilities

Noncurrent liabilities
Long-term loans payable
Investment corporation bonds
Tenant leasehold and security deposits

Total liabilities
Unitholders' capital
SurplusReserve for reduction entry

Unappropriated retained earnings

Total net assets

Jun. '23Period

Dec. '23Period

40,08739,341
746
469,808
456,565
11,816
1,426
173
150
22
510,069
37,2145,500
20,0005,000
6,714
198,880
144,000
30,90023,980236,095
261,751
12,2234,118
8,104
273,974

40,69339,812880
469,957
456,562
11,814
1,580
152
136
15
510,80230,511
15,0008,000
7,511
206,538
154,500
27,90024,138237,049
261,751
12,001
4,639
7,362
273,752

Change
+605
+471
+133
+148
-3
-1
+154
-21
-13
-7
+732
-6,703-5,500-5,000+3,000+796+7,658+10,500-3,000
+158
+954
-221
+520
-742
-221

Item

53.7%

53.6%

-0.1pt+9,288

Income before income taxes+7,357

Depreciation and amortization+2,058Other, net-127

Net cash provided by investing activities-1,239Purchase of property, plant and equipment -1,385
Other, net+146

Net cash provided by financing activities-7,577

Proceeds from lisbilities+18,500

Repayment of liabilities-18,500

Dividends paid

-7,577

Total cash and deposits+471

Increase or decrease in noncurrent assets
Item
Item

ChangeCapital expenditures+2,027

Depreciation-2,057

Others+178

Total noncurrent assets+148

Increase or decrease in liabilities
Item

Item

Balance at startof

Repayment/
redemption

New procurement

Balance at end of
periodChangeShort-term loans payable

5,500

-

-5,500--5,500Long-term loans payable

164,000+18,500-13,000

169,500+5,500Investment corporation bonds

Unitholder's equity ratio

ChangeNet cash provided by operating activities

Total liabilities

35,900--35,900-205,400+18,500-18,500

205,400-

31

3.Financial Results andOperating Forecasts

Overview of Financial Results for the 44th Fiscal Period (Dec. ‘23)
(compared with forecast)

Results of the 44th fiscal period ended Dec 2023: DPU was in line with the forecast
Net income increased (exceeding the initial forecast by 97 million yen) mainly due to progresswith leasing.
Item
Operating revenue
Rental revenue
Operating expense
Revenue
Selling, general and adminisutrative expenses
and profit(million Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve
Reversal amount of reserve(million
DPU (yen) (per unit)

Expenses related to rent business

Number of units outstanding (unit)

Dec. '23Period Dec. '23Period（forecast）（actual）

17,396
17,396
9,339
8,393
946
8,056
7
803
7,260
7,259

17,411
17,411
9,259
8,315
944
8,151
13
807
7,357
7,356

Change
+15
+15
-79
-77
-2
+95
+5
+4
+97
+97

318

221

-97

7,600

7,600

-

997,178

997,178

Item
Rental revenue
Rental revenue
Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes-

Insurance premiums
Repairs and maintenanceRental revenue

Property management fees

① [Rent and common charge] Increased mainly due to progress in leasing activities

Expenses related to rent business

Management association accounts

Depreciation③[Utilities expense] Balance of utilities (② - ③) improved

Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Dec. '23Period Dec. '23Period（forecast）（actual）

17,396
16,185
13,992
1,801
391
1,211
1,010
5
125
69
8,393
715
1,269
2,582
29
539
310
644
2,059
243
11,062
4.7%
9,002
3.8%
98.3%

17,411
16,216
14,020
1,801
394
1,195
988
10
128
67
8,315
711
1,150
2,581
30
578
315
640
2,057
248
11,153
4.7%
9,096
3.9%
98.4%

Change
+15
+31
+27
-0
+3
-15
-21
+5
+2
-2
-77
-3
-118
-0
+0
+39
+4
-3
-2
+5
+90
- pt
+93
+0.1pt+0.1pt

①

②

③

32

Forecasts of Financial Results for the 45th Fiscal Period (Jun. ‘24)(compared with 44th period)

3.Financial Results andOperating Forecasts

Forecast of the Jun. ‘24 fiscal period, DPU: 7,600 yen (the same as the forecast for the Dec. ‘23 fiscal
period)An increase in net income due to the acquisition of a new property is forecast (increase of 122 million
yen compared to December 2023 fiscal period result).
Item

Dec. '23Period

Jun. '24
PeriodChange（forecast）
Operating revenue
Rental revenue
Gain on sale of property

Revenueand profit(millionyen)

Operating expense
Expenses related to rent businessSelling, general and adminisutrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income

Reserve(million yen)

DPU (yen)

Reversal amount of reserve(per unit)

Number of units outstanding

17,411
17,411
9,259
8,315
944
8,151
13
807
7,357
7,356
221
7,600

17,695
17,695
9,386
8,388
997
8,309
25
855
7,479
7,479
99
7,600

+284
+284
+126
+73
+53
+157
+12
+47
+122
+122
-121
-

997,178

997,178-

Rental revenue (existing properties)① [Rent and common charge]
Likely to decrease mainly due to impact of tenant move-outs at MS Shibaura Bldg.
② [Cancellation penalty income and income equivalent to expense for restoration]
Decreased from the amount recorded in the previous period

Expenses related to rent business (existing properties)③ ［Property and other taxes］ Increase due to revaluation of fixed and metropolitan tax

Item
Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income

Other rental revenue
Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums

Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related to rent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Dec. '23Period Jun. '24Period（forecast）

17,411
16,216
14,020
1,801
394
1,195
988
10
128
67
8,315
711
1,150
2,581
30
578
315
640
2,057
248
11,153
4.8%
9,096
3.9%
98.4%

17,695
16,51914,307
1,818
394
1,175
932
53
21
168
8,388
752
1,101
2,634
34
504
312
655
2,145
246
11,452
4.7%
9,307
3.8%
97.7%

ChangeAcquired property※1

+284
+303
+287
+17
-0
-19
-56
+43
-107
+100
+73
+41
-48
+53
+4
-74
-2
+14
+88
-2
+299
-0.1pt+210-0.1pt-0.7ptExisting *2
properties

+443
+332
+325
+7
+111
+12
+98
+130
+33
+18
+0
+10
+5
+59
+1
+373

-159
-29
-38
+17
-7
-130
-68
+43
-107
+1
-57
+7
-67
+53
+3
-84
-8
+14
+29
-3
-73

+313

-102

①

②

③

*1. Increase
Increase oror decrease
decrease asis iscalculated.
*1.
as aa result
result ofofacquisitionacquisitionofofthe
thefollowing
followingassets
assetscalculated.
Jun. '24'24 period:
period: Acquisition
Jun.
Acquisition ofof Nakano
NakanoCentral
CentralPark
ParkEast
East*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind the*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ④).
increase/decrease for existing properties are described in ① to ③).

33Forecasts of Financial Results for the 46th Fiscal Period (Dec. ‘24)(compared with 45th period)

3.Financial Results andOperating Forecasts

Forecast of the Dec. ‘24 fiscal period, DPU: 7,600 yen (the same as the forecast for the Jun. ‘24 fiscal
period)An increase in net income mainly due to the full-year contribution of a new property and progress withleasing is forecast (increase of 19 million yen compared to June 2024 fiscal period result).
Item
Operating revenue
Rental revenue
Operating expense

Revenueand profit(millionyen)

Expenses related to rent businessSelling, general and adminisutrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income

Reserve(million yen)

DPU (yen)

Reversal amount of reserve(per unit)

Number of units outstanding

Jun. '24Period

Dec. '24
PeriodItem

Change（forecast）（forecast）

17,695
17,695
9,386
8,388
997
8,309
25
855
7,479
7,479
99
7,600

17,916
17,916
9,503
8,497
1,006
8,412
3
916
7,499
7,499
79
7,600

+220
+220
+117
+108
+8
+103
-22
+61
+19
+19
-19
-

997,178

997,178-

Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income

Other rental revenue
Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums

Repairs and maintenance
Property management fees
Management association accounts

Depreciation

Rental revenue (existing properties)

Other expenses related to rent business① [Rent and common charge] Likely to increase mainly due to progress in leasing activities NOINOI yield (book value)
Rental income-real estate
After-depreciation (book value)Jun. '24Period

Dec. '24
Period（forecast）（forecast）

17,695
16,51914,307
1,818
394
1,175
932
53
21
168
8,388
752
1,101
2,634
34
504
312
655
2,145
246
11,452
4.7%
9,307
3.8%

17,916
16,757
14,525
1,835
396
1,158
1,077
81
8,497
772
1,242
2,628
35
390
315
655
2,201
254
11,620
4.6%
9,419
3.8%

ChangeAcquired property※1

+220
+237
+218
+17
+1
-16
+144
-53
-21
-86
+108
+20
+140
-5
+0
-114
+3
+0
+56
+7
+167
-0.1pt+111- pt

Existing *2
properties

+126
+199
+196
+3
-73
+6
-79
+86
+16
+9
+0
+17
+3
+30
+8
+70

+94
+37
+22
+17
-1
+56
+138
-53
-21
-6
+22
+3
+131
-5
+0
-131
-0
+0
+25
-0
+96

+39

+71

*1. Increase or decrease as a result of acquisition of the following assets is calculated.
Jun. '24 period: Acquisition of Nakano Central Park East
*2. Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① ).

34①

3.Financial Results andOperating Forecasts

Change in Rental Business Profits and Gain or loss on the sale ofproperties

Item
Operating revenue
Rental revenue (fixed income)Rents and common charge

Land rent
Other fixed income
Other rental revenue (variable income)incidental income
Cancellation penalty, etc.
Income ecquivalent to expense for restoration to original condition

Other variable income
Expenses related to rent business (excluding depreciation)

Rental businessprofits(million yen)

Outsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts
Other expenses related to rent business

NOI
Depreciation
Expenses related to rent business

Gain or loss on sale ofproperties (million yen)

Rental income-real estate（a）
Capital expenditures
NCF
Gain on sale of real estate（b）

Loss on sale of real estate（c）※
Rental income-real estate, etc. (million yen, a+b-c）

Dec. '22 Period

Jun. '23 Period

Change17,392
16,032
13,831
1,802
398
1,360
1,006
82
182
89
6,144
703
1,301
2,507
30
432
306
643
219
11,248
2,055
8,199
9,193
1,503
9,745
1,347
210
10,329

2.2%
-0.4%
-0.5%
0.0%
46.7%
26.0%

4.1%
0.6%
36.6%
-0.7%
-8.0%

1.2%
0.5%
3.2%
1.3%
8.8%
0.1%

-0.8%

Dec. '23 Period

Change17,291
16,146
13,948
1,801
396
1,145
1,001
17
59
66
6,266
707
1,285
2,594
29
433
312
637
265
11,025
2,044
8,310
8,981
1,453
9,571
881
9,862

-0.6%
0.7%
0.8%
0.0%
-15.8%
-0.4%

2.0%
0.5%
-1.2%
3.5%
0.3%

-2.0%
-0.5%
1.4%
-2.3%
-3.3%
-1.8%

-4.5%

17,411
16,216
14,020
1,801
394
1,195
988
10
128
67
6,258
711
1,150
2,581
30
578
315
640
248
11,153
2,057
8,315
9,096
2,027
9,125
9,096

Jun. '24 Period

Dec. '24 Period

Change（forecast）

Change（forecast）

Change

0.7%
0.4%
0.5%
0.0%

17,695
16,51914,307
1,818
394
1,175
932
53
21
168
6,243
752
1,101
2,634
34
504
312
655
246
11,452
2,145
8,388
9,307
1,800
9,651
9,307

1.6%
1.9%
2.0%
0.9%

17,916
16,757
14,525
1,835
396
1,158
1,077
81
6,295
772
1,242
2,628
35
390
315
655
254
11,620
2,201
8,497
9,419
2,129
9,491
9,419

1.2%
1.4%
1.5%
0.9%

4.3%
-1.3%

-0.1%
0.6%
-10.5%
-0.5%
33.5%

1.2%
0.6%
0.1%
1.3%
39.5%
-4.7%

-7.8%

-1.6%
-5.7%

-0.2%
5.8%
-4.2%
2.1%
-12.9%

2.7%
4.3%
0.9%
2.3%
-11.2%
5.8%

2.3%

-1.4%
15.5%

0.8%
2.7%
12.8%
-0.2%
-22.6%

1.5%
2.6%
1.3%
1.2%
18.2%
-1.7%

1.2%

* “Gain (loss) on transfer of property” for the Dec. ’22 period is a loss on the exchange of real estate, etc.

35

3.Financial Results andOperating Forecasts

Change in Rental Business Revenue

Rental revenue for the Jun. ‘24 period is expected to rise approx. 303 million yen (period-on-period)
Rental revenue for the Dec. ‘24 period is expected to rise approx. 237 million yen (period-on-period)

Rent revenue (factor for period-on-period changes)
Rent revenue

Plus item

Rents and common
chargeMinus item

Rents and common
chargeRents and common
charge16,146Move- Moveouts
ins+278 -307

Moveouts-296
Acquisition
Transfer+13
Revisionetc.
+18Move-ins Move-outs
-345
+356

+304

+71
Moveins+337+235

Acquisition+325

Others-1

16,757
Others+1

16,519Others-0

16,216

Acquisition+196(million yen)

Revision
etc.
+28

Revisionetc.
+7

Acquisition +72
Transfer -59

2023.6

Dec. ’23 period

Jun. ’24 period (forecast)

Dec. ’24 period (forecast)36

4. Appendix

37

4. Appendix

Fund Summary
Jun. 2021 Period
40.6%
33.1%

Dec. 2021 Period
41.7%
33.8%

Jun. 2022 Period
40.0%
31.9%

Dec. 2022 Period
40.0%
32.0%

Jun. 2023 Period
40.3%
32.4%

Dec. 2023 Period
40.2%
32.2%

(acquisition value)

4.8%

4.6%

4.5%

4.5%

4.5%

4.5%

(book value)(appraisal value)

5.1%
4.1%

4.8%
3.8%

4.8%
3.8%

4.8%
3.8%

4.8%
3.7%

4.7%
3.7%

(acquisition value)

3.9%

3.7%

3.7%

3.7%

3.7%

3.6%

(book value)(appraisal value)(NOI yield)

4.1%
3.3%
3.6%

3.9%
3.1%
3.7%

3.9%
3.1%
3.8%

3.9%
3.1%
3.9%

3.9%
3.0%
4.0%

3.9%
3.1%
4.2%

(After-depreciation
yield)

2.9%

3.0%

3.1%

3.2%

3.3%

3.4%

9,436 million yen
8,066 million yen
9,847 yen
8,474 yen
7,657 yen
3.4%
6.3%

9,006 million yen
7,404 million yen
9,398 yen
8,236 yen
7,550 yen
3.7%
6.1%

9,315 million yen
7,933 million yen
9,341 yen
8,631 yen
7,800 yen
3.8%
6.3%

9,388 million yen
7,885 million yen
9,414 yen
8,493 yen
7,750 yen
4.1%
6.2%

9,261 million yen
7,807 million yen
9,287 yen
8,121 yen
7,600 yen
4.3%
5.9%

9,413 million yen
7,386 million yen
9,440 yen
7,377 yen
7,600 yen
4.3%
5.4%

1,969 yen

2,657 yen

3,386 yen

4,129 yen

4,652 yen

4,430 yen

Net asset per unit
NAV per unit

268,295 yen
375,544 yen

268,875 yen
383,368 yen

273,684 yen
394,302 yen

274,378 yen
394,241 yen

274,749 yen
391,230 yen

274,527 yen
395,190 yen

Investment unit price (immediately
before the ex-right date)

444,000 yen

403,500 yen

408,000 yen

378,500 yen

357,500 yen

357,000 yen

1.2 times
1.7 times
26.2 times
22.5 times
53.1%
77.8%
91.0%

1.1 times
1.5 times
24.5 times
21.5 times
52.0%
80.3%
97.7%

1.0 times
1.5 times
23.6 times
21.8 times
53.8%
83.5%
98.0%

1.0 times
1.4 times
22.3 times
20.1 times
53.9%
82.3%
98.0%

0.9 times
1.3 times
22.0 times
19.2 times
53.7%
81.8%
97.1%

0.9 times
1.3 times
24.2 times
18.9 times
53.6%
80.5%
102.6%LTVNOI yield

Afterdepreciationyie
ld
Implied cap
rate(book value)(appraisal value)

FFO
AFFO
FFO per unit
EPU
Cash distribution per unit
Dividend yield
ROE
Reserve for reduction entry per unit

NAV multiple
PBR
PER
FFO ratio
Unitholder’s equity ratio(FFO)
Pay out ratio(AFFO)

1. [after-depreciation] Implied cap rate = [after depreciation] NOI(annualized, forecast for the next fiscal period x 2) / (market
capitalization + interest-bearing debts – cash and deposits + tenantleasehold and security deposits)
2. FFO = Net income + depreciation – gain on loss on sale of real estate
properties (including loss on retirement of non-current assets)
3. AFFO = FFO – capital expenditures
4. EPU = Net income / number of units outstanding (end of period)

5. Dividend yield = Cash distribution per unit (annualized, most recent
result x 2) / investment unit price6. ROE (return on equity) = Net income (annualized, most recent result x2) / net assets
7. NAV per unit = (Net assets + unrealized gains or losses – total cash
distributions) / number of units outstanding (end of period)
8.
NAV multiple = Investment unit price / NAV per unit
9.
PBR (price book-value ratio) = Investment unit price / net assets perunit

10. PER (price earnings ratio) = Investment unit price / EPU (annualized,
most recent result x 2)
11. FFO multiple = Investment unit price / FFO per unit (annualized, mostrecent result x 2)
12. Unitholder’s equity ratio = Net assets / total assets
13. FFO payout ratio = Total cash distributions / FFO
14. AFFO payout ratio = Total cash distributions / AFFO
15. Reserve for reduction entry indicates the figure calculated by adding or
subtracting the amounts brought forward or reversed in the relevant
fiscal period to or from the balance at the end of the fiscal period.

38

4. Appendix

Portfolio■ Asset size (based on acquisition price, 100million yen),Occupancy rate (%)
Office properties in Tokyo(average)

Office properties in Other Cities ：Office properties in Other Cities

95.2

94.0 93.8

92.6 93.1

94.3 94.9

96.1

Retail properties ：97.7 98.3

99.0 98.7

98.0

97.0 96.2 96.4 96.1

93.6 94.0

95.0 94.8 94.4 95.6

96.9 97.0 97.2 97.5 97.4 97.8

369.2 billion yen
61.5 billion yen
95.0 billion yen

Office properties in Tokyo ：96.8%

Occupancy Rate

Retail properties

Breakdown by area and by asset class （After acquisition of
Nakano）

Occupancy rate

98.3 98.5 98.4 98.2 99.2 99.2

99.5 99.6 99.4

98.2

96.9 97.8 97.0 97.6

98.4

5,258

4,848
4,395

4,214

4,047
3,449
2,994
2,224
1,636
922

120 .0110 .0100 .0
90. 0
80. 0
70. 0
60. 0
50. 0
40. 0
30. 0
20. 0
10. 0
0.0

1

2
'02

3

4
'03

5

6
'04

7

8

9

'05

10
'06

11

12
'07

13

14
'08

15

16

17

'09

18
'10

19

20
'11

21

22
'12

23

24
'13

25

26

27

'14

28
'15

29

30
'16

31

32
'17

33

34
'18

35

36
'19

37

38
'20

39

40
'21

■ Every kind of ratio
Ratio by Asset Class

Ratio by Area

(Ratio of Acquisition Price)(Ratio of Acquisition Price)

Other
cities
14.8%

Urban Retail
Property, etc.
18.1%

Portfolio
management
standards
70 - 90%
for officeproperties

81.9%

33.6%

(Office Properties, Ratio of
Acquisition Price)

Medium-sized(3,000 m2 to lessthan 10,000 m2)
23.8%

Portfolio
management
standards
Greater
80 - 90%Tokyo
for Tokyo
OfficeRatio by Asset Size
Very large(30,000 m2 or
more)
56.5%

Ratio by Number of Minutes
Walk from Nearest Station(Ratio of Acquisition Price)

Within 5-10
minutes
9.0%

Directly
linked
16.5%

41

42
'22

（period）
44 （After
45

43
'23

Acquisition of'24（year）Nakano）

Ratio by Contract Type(Office Properties, Area Ratio)

Fixed-term lease contract

21.0%

Within 3-5
minutes

Central
Tokyo
51.6%

Large-sized(10,000 m2 to lessthan 30,000 m2)
19.7%

Within 1-3
minutes
24.9%

Within 1
minute27.5%

Ordinary
lease
contract

79.0%

1. After acquisition of Nakano

39

4. Appendix

Move-Ins and Move-Outs of Tenants (as of December 31, 2023)■ Breakdown and changes in move-ins and move-outs■ Move-in/move-out spaces by property(Move-ins)(move-out)（ Move-in/move-out spaces by area and asset class: m2 ）Move-ins

Net
Increase/
Decrease

Move-outs

Office properties inCentral Tokyo

3,243

Office properties inGreater Tokyo

2,842

1,455

1,387

Office properties in
Other Cities

1,884

2,372

-488

Retail properties

1,813

0

Total

7,969

0
5,641

1,429

0
2,328

■ Reasons for move-ins and move-outs
New establishment
or expansion

New
Downscaling or

Eviction, etc.

establishment

16%

or expansion

cost reduction

74%

Eviction, etc.
14%

Better location or
5% building 5%3%
Consolidation
3%
Better locationor building 3%

Moveins
31

Moveouts
21

Downscalingor cost reduction
65%

Consolidation
19%

Move-outs

Move-ins

Shin-Kojimachi Bldg.

99

99

JPR Ichigaya Bldg.

290

290

Shinjuku Square Tower

331

BYGS Shinjuku Bldg.

208

208

Shinjuku Center Bldg.

15

15

JPR Harajuku Bldg.

547

547

JPR Nihonbashi-horidome Bldg.

0

-287

287

Science Plaza - Yonbancho Plaza

-27

-84

56

Tokyo Square Garden

-39

-616

576

Tokyo Tatemono Higashi Shibuya Bldg.

0

-203

203

Ochanomizu Sola City

3

JPR Chiba Bldg.

-89

-89

Shinyokohama 2nd Center Bldg.

-473

-473

Kawaguchi Center Bldg.

445

-132

Tachikawa Business Center Bldg.

90

Olinas Tower

701

-621

（㎡）

952

3

577
90
701

-214

JPR Yokohama Bldg.

1,052

Sencity Bldg.

-339

Niigata Ekinan Center Bldg.

-294

Sompo Japan Sendai Bldg.

-135

Tenjin 121 Bldg.

703

JPR Dojima Bldg.

0

-429

ＪＰＲ Dojima West

-515

-515

JPR Shinsaibashi Bldg.

-246

-246

-545

1,266
205

-534
-646

240
510
703
429

40

4. Appendix

Yields (as of December 31, 2023)■ Yields by area and by asset class(based on book value)(NOI yield)（%）

10

Circle size = portfolio asset size (book value) Center of circle= NOI yield
Officeproperties
OfficeOfficein Greater properties
properties
Tokyoin Otherin Central
RetailCitiesTokyo
properties

6.3%

5
3.9%

5.4%

4.7%

■ NOI yield by property (based on book value)
Central Tokyo

Kanematsu Bldg.

MS Shibaura Bldg.

Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

Circle size = portfolio asset size (book value) Center of circle（%）= after-depreciation yield

10

5

OfficeOfficeproperties
Officeproperties in Greater
properties
in Central
Tokyoin OtherTokyo
Cities5.0%

4.0%

Ginza Sanwa Bldg.
Otemachi site (land with…
Science Plaza - Yonbancho…
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.

Retailproperties

Otemachi Financial City North…
Tokyo Tatemono Higashi-…
Ochanomizu Sola City

4.0%

JPR Shibuya Tower Records…
JPR Jingumae 432

3.3%

0

Portfolio average
3.9%

Arca East Bldg.

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
JPR Ginza Namiki-dori Building
FUNDES Suidoubashi
Average of Central Tokyo

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

3.1

Tachikawa Business Center Bldg.

8.5

Oval Court Ohsaki Mark West

Shinjuku Center Bldg.

015
JPR Chiba Bldg.

6.0
6.1
6.0
6.3

Shin-Kojimachi Bldg.
JPR Ichigaya Bldg.

10

3.4

JPR Ningyocho Bldg.

Across Shinkawa Bldg. Annex(After-depreciation yield)

5

Kanematsu Bldg. Annex

BYGS Shinjuku Bldg.

0

（%）

（%）

0

Shinjuku Square Tower

Portfolio average
4.7%

Greater Tokyo and Other Cities

4.5
5.2
7.2
3.4
3.8
5.3
4.7
2.8
5.6
3.3
3.6
3.6
5.8
6.4
2.5
3.5
3.0
3.6
3.5
4.7
1.6
3.1
3.0
2.9
3.6
3.9

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg.
JPR Omiya East
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki DICE Bldg.
FUNDES Ueno
Average of Greater Tokyo
Niigata Ekinan Center 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 West
GRAND FRONT OSAKA (Umekita…
GRAND FRONT OSAKA (North…
JPR Dojima West
Housing Design Center Kobe
JPR Chayamachi Bldg.
FUNDES Tenjin Nishidori
Average of Other Cities

5

10

15

6.7

8.3
7.8

11.2
8.1
9.0
7.0
5.7
7.3
5.3
3.8
6.9
6.5
9.7
9.4
4.2
6.3
4.5
4.4
6.2
9.1
10.0
9.9
11.5

6.9
6.3
5.0
8.3
3.3
5.2
2.9
3.3
4.5
5.5
4.7
4.1
5.3

41

4. Appendix

Diversification of Tenants (as of December 31, 2023)■ Ratio of tenant occupancy◼

◼

■ 20 largest tenants (by property; based on end tenants)

The number of office tenants other than the sponsors, etc.
with tenant occupancy of 1% or more is none (excluding
property comprising land with leasehold interest).

Occupying property

Leased space(㎡)

Ratio ofoccupancy(%)

ABC Development
Corporation

Housing Design Center Kobe

35,444.13

7.2

Seiyu GK

Tanashi ASTA

31,121.71

6.3

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.0

Musashiurawa Shopping Square

9,558.51

1.9

JPR Shibuya Tower Records
Bldg.

8,076.85

1.6

A company

Cupo-la Main Bldg.

5,963.00

1.2

Ｂ companyMusashiurawa Shopping Square

5,285.40

1.1

Sponsors, etc.
with 1% or more
(1 company)

Tokyo Prime Stage Inc.

The Otemachi Tower (landwith Leasehold Interest)

7,875.50

1.6

Other tenantswith 1% or more

None

C company

JPR Nagoya Fushimi Bldg.

4,904.64

1.0

D company

Yakuin Business Garden

4,719.50

1.0

E company

Shinjuku Center Bldg.

4,498.25

0.9

F company

Shinjuku Square Tower

4,242.48

0.9

G company

Oval Court Ohsaki Mark West4,088.44

0.8

H company

Niigata Ekinan Center Bldg.

3,938.63

0.8

I company

MS Shibaura Bldg.

3,922.74

0.8

J company

Sompo Japan Sendai Bldg.

3,733.03

0.8

K company

BYGS Shinjuku Bldg.

3,669.05

0.7

L company

Olinas Tower

3,544.12

0.7

M company

Olinas Tower

3,544.12

0.7

N company

Rise Arena Bldg.

3,522.90

0.7

Category(No. of tenants)

Many of the retail tenants have long-term lease contracts,
and the possibility for them to cancel is rather small.
Retail tenants with
1% or more

Retail tenantswith 1% or more
(7 companies)

23.5%
Sponsors, etc. with
1% or more

1.6%

Less than 1%
74.9%■ Ratio by tenant’s industry(office properties, area ratio)*1
Medical andOthersTransportation
Welfare
0.5%
3.3%
0.6%
PublicServices
1.2%
Construction
Real Estate
10.9%

7.0%

Manufacturing
11.3%
Wholesale andRetail15.2%

Services
28.4%

Information andCommunications
12.8%
Finance andInsurance
8.6%

Less than 1%(1,228companies)

TenantOlympic Group
Corporation
Tower Records JapanInc.

*1. Figures exclude GRAND FRONT OSAKA.

42

4. Appendix

Rent and Occupancy■ Change in occupancy rate and rents
Item

Dec. 2020 Period

Jun. 2021 Period

Dec. 2021 Period

Jun. 2022 Period

Dec. 2022 Period

Jun. 2023 Period

Dec. 2023 Period

99.1

97.7

95.8

96.9

95.9

96.9

97.9

98.7

96.5

94.2

93.3

93.7

95.1

96.1

Average rent (entire area), yen

18,977

19,166

19,445

19,496

19,566

19,538

19,844

Average rent (central Tokyo), yen

22,31322,451

22,53322,50422,716

22,79422,717

Average rent (greater Tokyo), yen

18,196

18,217

18,42018,362

18,35918,317

19,259Average rent (other cities), yen

13,912

14,067

14,606

14,66014,653

14,70914,763

-3.2

-0.6

-0.6

-0.4

+1.4

+1.3

+0.7

100.0

99.3

99.5

99.9

99.7

99.5

99.6

100.0

99.2

99.2

99.4

99.6

99.4

99.6

Occupancy rate based on
concluded contract, %Occupancy rate based on
generated rents, %OfficeGap in rent (%)

RetailOccupancy rate based on
concluded contract, %Occupancy rate based on
generated rents, %■ Status of rent revision, rent through tenant replacement andcontribution rate (Dec. ‘23)

■ Leased area by rent level/ratio of contracts withupward rent revision (contracts renewed Dec. ’23 period)(million yen)

Increase/
Decrease
Ratio (%)

91.0

-5.0

-1.1

2.4

2.9

+0.8

+7.4

9

4.3

5.2

-5.9

-14.2

162

68.9

82.9

-

-

Tenant replacement

30

7.4

9.0

-0.2

-0.6

Upward revision

12

3.4

4.2

+2.7

+14.1

Decrease in rent

15

3.7

4.5

-3.0

-12.6

7

0.2

0.3

-

-

212

83.1

100.0

-5.3

-1.0

Number ofcontracts(thousand m2)

182

75.7

Upward revision11

Decrease in rent

Item
Rent Revisions

Neither upward or
downward revision of
rent

Neither upward or
downward revision of
rent
Total (Rent revision +Tenant replacement)

Area

Area ratio(%)

Increase/
Decrease

Item

Area

(thousand m2)

Area ratio(%)

Ratio ofcontractswith upwardrevision (%)

Lower than market rent

12.4

21.3

9.1

Within market range

18.7

32.1

10.2

Market rent more

27.3

46.7

0.0

■ Leased area by rent level (contracts renewed Jun.
‘24. period - Dec. ’25 period)
Item

Area (thousand m2)

Area ratio (%)

Lower than market rent

59.9

22.8

Within market range

73.9

28.2

Market rent more

128.4

49.0

43

4. Appendix

Status of Utilities Expense (Electricity Bills)

Arrangements for charging tenants changed, and net electricity expenses improved.
Arrangements for charging tenants

Changes in electricity bills

Under the contracts for almost all properties, the building owner now
does not pay variable costs (fuel adjustment charge + renewableenergy power promotion surcharge) for exclusively owned areas.

Revenue
収入

費用
Expenses（million yen）

1,200

＜ As of June 30, 2022 ＞
1,018

1,000

17.1%
Combination of
fixed unit price andvariable unit price30.5%
Tenant directcontracts

12.6%
Pass-through

1,019

942

851

39.7%
Fixed unit price

800

711

848

799

789

756

708

711

600
600

60.3%
400

Contracts under which the building owner does not pay variable
costs (fuel adjustment charge, etc.) for exclusively owned areas.

20002022.6＜ As of December 31, 2023 ＞

59.1%

29.4%

Combination of fixed unit price andvariable unit priceTenant directcontracts

11.0% 0.4%
Pass- Fixedthrough unit
price

99.6%

Contracts under which the building owner does not pay variable
costs (fuel adjustment charge, etc.) for exclusively owned areas.

(i) Net electricity- 110
revenue/expens（- 111 yen）
es (per unit)

2022.122023.62023.122024.62024.12 (period)(Revised
forecast)(Revised
forecast)

- 261

- 230

- 143

- 136

- 142

(- 262 yen)（- 230 yen）（- 144 yen）（- 136 yen）（- 142 yen）

(ⅱ) Previous
forecast(per unit)

―

―

―

(iii)
Improvement in
net revenue/
expenses = (i)(ii) (per unit)

―

―

―

- 206

- 185

（- 207 yen）（- 186 yen）

+ 63

+ 49

(+ 63 yen)(+ 49 yen)

―

―

44

4. Appendix

Value Enhancing Construction WorkStrengthening property competitiveness through renovation work aimed at
improving tenant satisfaction.
Value Enhancing Construction WorkJPR Harajuku Bldg.

JPR Yokohama Bldg.

BYGS Shinjuku Bldg.

JPR Omiya Bldg.

Housing Design Center Kobe

Kawaguchi Center Bldg.

45

4. Appendix

Appraisal Value (as of December 31, 2023)

Unrealized gains increase due to increase in appraisal value
Status of change in appraisal value

Appraisal value and unrealized gains
Appraisal value

Unrealized gains

596.2 billion yen 127.9 billion yen(up 4.2 billion yen from (up 4.2 billion yen from
43rd period
43rd period(Jun. ‘23))(Jun. ‘23))

Ratio of unrealized
gains

◼

The property sales market remained buoyant
and the downward trend in cap rates continued.

27.3%(Appraisal Value) (number of property)(period-on period
comparison +1.0pt)(Direct Cap Rate)(number of property)

Jun. ’23
periodDec. ’23
periodLowering

29

31

21

Same

36

36

21

Rising20Jun. ’23
periodDec. ’23
periodIncrease

27

25

Same

14

Decrease

26

Changes in unrealized gains and losses
含み損益（左軸）(100 mn. yen)

含み損益率（右軸）

127.9 billion yen

1,400

(%)

30

1,200

27.3%

1,000

20

800
600

10

400
200

0

0
-200
-400

'03.12'05.12'07.12'09.12'11.12'13.12'15.12'17.12'19.12'21.12-10'23.12 （period）

46

4. Appendix
Property nameAppraisal Value by Property (as of December 31, 2023)
Direct cap Chang
DCF
Appraisal
Chang DCF Chang
Book
Change (NCF Cap)
discount
terminal
value
e
e
e
value
(%)
rate
cap
(mn yen)(mn yen)(% pt) (%) (% pt) (%) (% pt) (mn yen)

Unrealized
gain orloss(mn yen)

Property name

Direct cap Chang
DCF
Appraisal
Chang DCF Chang
Book
Change (NCF Cap)
discount
terminal
value
e
e
e
value
(%)
rate
cap
(mn yen)(mn yen)(% pt) (%) (% pt) (%) (% pt) (mn yen)

Unrealized
gain or loss
(mn yen)Kanematsu Bldg.

14,300+200

3.3%-0.1 3.1%

-0.1

3.5%

-0.1

14,630-330

Rise Arena Bldg.

18,500-3.5%- 3.2%-

3.6%-

12,297

Kanematsu Bldg. Annex

2,970

+10

3.7%

-0.1 3.5%

-0.1

3.9%

-0.1

2,351

+618

Yume-ooka Office Tower

7,400

-

3.7%

- 3.4%

-

3.8%

-

4,996

+6,202+2,403

JPR Ningyo-cho Bldg.

3,230

+90

3.5%

-0.1 3.3%

-0.1

3.6%

-0.1

2,075

+1,154

Olinas Tower

40,900+700

3.3%-0.1 3.0%

-0.1

3.4%

-0.1

25,469+15,430

Shin-Kojimachi Bldg.

4,300

-

3.4%

- 3.1%

-

3.5%

-

2,408

+1,891JPR Yokohama Bldg.

10,100-3.7%- 3.5%

-

3.8%

-

7,675

+2,424

MS Shibaura Bldg.

14,400-1,1003.9%- 3.6%-

4.0%-

10,777+3,622Omiya Prime East

11,100+400

3.7%-0.1 3.5%

-0.1

3.8%

-0.1

5,526

+5,573JPR Ichigaya Bldg.

4,830

-110

3.5%

-0.1 3.3%

-0.1

3.7%

-0.1

5,195

-365

Sencity Bldg.

15,700-3.9%- 3.6%-

4.0%-

14,005+1,694

Oval Court Ohsaki Mark West

5,270

+90

3.7%

-0.1 3.5%

-0.1

3.9%

-0.1

2,676

+2,593

Tanashi ASTA

11,100-5.2%- 5.1%

-

5.4%

-

6,819

+4,280Shinjuku Square Tower

15,500+100

3.5%-0.1 3.3%

-0.1

3.7%

-0.1

12,728+2,771

Cupo-la Main Bldg.

3,070

-10

4.6%

- 4.4%

-

4.8%

-

1,530

+1,539BYGS Shinjuku Bldg.

19,400+100

3.4%-0.1 3.2%

-0.1

3.6%

-0.1

15,418+3,981JPR Musashikosugi Bldg.

5,340

-30

4.6%

-0.1 4.4%

-0.1

4.8%

-0.1

7,070

-1,730

806

-2

4.4%

- 4.2%

-

4.6%

-

604

+201

Musashiurawa Shopping Square

4,350

+50

4.8%

-0.1 4.7%

-0.1

5.0%

-0.1

3,425

+924

Shinjuku Center Bldg.

21,200-300

3.0%- 2.7%-

3.1%-

24,160-2,960Kawasaki Dice Bldg.

12,600-200

4.1%- 4.0%-

4.3%-

12,794-194

Minami Azabu Bldg.

3,420

+30

3.6%

- 3.4%

-

3.7%

-

3,760

-340

FUNDES Ueno

4,090

-

3.5%

- 3.2%

-

3.6%

-

3,695

+394

Shinagawa Canal Bldg.

2,140

-180

3.7%

- 3.4%

-

3.8%

-

1,851

+288

Niigata Ekinan Center Bldg.

2,160

-20

5.4%

- 5.4%

-

5.6%

-

1,491

+668

Rokubancho Bldg.

3,730

-

3.8%

- 3.5%

-

3.8%

-

2,893

+836

JPR Naha Bldg.

2,410

+40

4.6%

-0.1 4.6%

-0.1

4.8%

-0.1

1,636

+773

JPR Harajuku Bldg.

10,100-400

3.5%-0.1 3.3%

-0.1

3.7%

-0.1

8,886

+1,213

Sompo Japan Sendai Bldg.

4,110

-30

4.5%

- 4.2%

-

4.6%

-

2,301

+1,808JPR Nihonbashi-horidome Bldg.

6,950

+100

4.0%

-0.1 3.8%

-0.1

4.2%

-0.1

4,867

+2,082

Sompo Japan Wakayama Bldg.

1,550

+40

5.7%

-0.1 5.5%

-0.1

5.9%

-0.1

1,296

+253

JPR Sendagaya Bldg.

11,900-3.6%-0.1 3.4%

-0.1

3.8%

-0.1

14,650-2,750Tenjin 121 Bldg.

4,080

-

3.8%

- 3.4%

-

3.9%

-

1,954

+2,125

JPR Dojima Bldg.

3,980

-40

3.7%

- 3.5%

-

3.8%

-

2,098

+1,881JPR Nagoya Fushimi Bldg.

3,510

+20

4.6%

-0.1 4.2%

-0.1

4.6%

-0.1

3,791

-281

+700

3.5%

-0.1 3.3%

-0.1

3.6%

-0.1

9,895

+14,504

Across Shinkawa Bldg. Annex

3,880

-

2.8%

-0.1 2.5%

-0.1

2.9%

-0.1

3,677

+202

The Otemachi Tower (Land with Leasehold Interest)

56,700+2,1002.4%-0.1 2.3%

-0.1

2.5%

-0.1

38,388+18,311

Science Plaza - Yonbancho Plaza

3,470

-

3.6%

- 3.2%

-

3.7%

-

2,745

+724

Yakuin Business Garden

24,400Ginza Sanwa Bldg.

Shibadaimon Center Bldg.

6,530

-70

3.3%

- 3.0%

-

3.4%

-

4,165

+2,364

JPR Shinsaibashi Bldg.

4,770

+70

3.5%

-0.1 3.2%

-0.1

3.6%

-0.1

5,338

-568

Tokyo Square Garden

22,200+800

2.4%-0.1 2.2%

-0.1

2.6%

-0.1

18,199+4,000JPR Shinsaibashi West

4,780

-130

3.7%

- 3.5%

-

3.8%

-

3,945

+834

6,230

-20

3.0%

- 2.8%

-

3.1%

-

5,829

+400

GRAND FRONT OSAKA(Umekita Plaza and South Building)

12,300-3.1%- 2.9%-

3.2%-

11,788+511

Otemachi Financial City North Tower

13,000-2.3%- 2.0%-

2.4%-

11,441+1,558

GRAND FRONT OSAKA(North Building)

10,100-

3.2%- 3.0%

-

3.3%

-

9,496

+603

Tokyo Tatemono Higashi Shibuya Bldg.

12,200-100

3.4%- 3.5%-

3.6%-

11,591+608

JPR Dojima West

2,800

+40

3.7%

-0.1 3.4%

-0.1

3.8%

-0.1

2,534

+265

7,040

-130

2.9%

- 2.7%

-

3.0%

-

6,512

+527

Housing Design Center Kobe

7,330

-10

5.3%

- 5.1%

-

5.4%

-

6,170

+1,159JPR Chayamachi Bldg.

8,410

+20

3.2%

-0.1 2.9%

-0.1

3.3%

-0.1

5,948

+2,461FUNDES Tenjin Nishidori

3,690

+50

3.3%

-0.1 3.1%

-

3.4%

-

3,347

+342

JPR Kojimachi Bldg.

Ochanomizu Sola City

15,300+700

3.2%- 3.0%-

3.3%-

11,407+3,892JPR Jingumae 432

4,100

-

2.9%

- 3.0%

-

3.1%

-

4,252

-152

Shinjuku Sanchome East Bldg.

2,360

-10

3.1%

- 2.6%

-

3.3%

-

2,497

-137

JPR Shibuya Tower Records Bldg.

3,490

-20

2.8%

- 2.4%

-

2.9%

-

3,246

+243

Total

596,266+4,168468,364+127,901

JPR Ginza Namiki-dori Bldg.

11,100-2.7%-0.1 2.4%

-0.1

2.7%

-0.1

10,126+973

Central Tokyo

315,516 +1,878

267,154+48,361

FUNDES Suidoubashi

3,470

-

3.3%

- 3.1%

-

3.4%

-

3,134

+335

Greater Tokyo

180,370 +1,540

128,174+52,195

Arca East

6,780

+180

3.5%

-0.1 3.2%

-0.1

3.6%

-0.1

4,184

+2,595

Other Cities

100,380

73,035+27,344

JPR Chiba Bldg.

1,910

-

5.1%

-0.1 4.9%

-0.1

5.3%

-0.1

2,127

-217

JPR Yokohama Nihon Odori Bldg.

2,460

-

4.7%

-0.1 4.5%

-0.1

4.9%

-0.1

2,298

+161

Shinyokohama 2nd Center Bldg.

2,620

-10

4.1%

- 3.9%

-

4.2%

-

1,407

+1,212

Kawaguchi Center Bldg.

11,800+400

4.2%-0.1 3.9%

-0.1

4.3%

-0.1

7,168

+4,631JPR Ueno East Bldg.

5,870

-

3.5%

- 3.3%

-

3.6%

-

2,813

+3,056

Tachikawa Business Center Bldg.

4,680

+60

3.8%

-0.1 3.5%

-0.1

3.9%

-0.1

2,867

+1,812

Yurakucho Ekimae Bldg. (Yurakucho Itocia)+750

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate that serve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.
3. Impact of sold properties is not included in calculation of change in appraisal value from previous period.

47

JPR’s Commitment to Sustainability (1):Materialities

4. Appendix

JPR will review the items below according to social needs and expansion of initiatives.
(Materialities of JPR and TRIM and strategic targets)
Materialities* Changed items
Policies

Promoting acquisition of environmental certification

Strategies⚫
⚫

Improving environmental certification acquisition rate
Improving environmental ratings

Achieving reductions by lowering emissions coefficients
Achieving reductions with energy saving renovations
Achieving reductions by introducing renewable energy⚫ Reducing waste and improving recycling rate⚫

E Action on climate change

Reducing GHG emissions

Efficient use of water resources and promotion of 3Rs(Reuse, Reduce and Recycle)
Strengthening climate change risk management
Working with tenants to address climate change
Improving tenantsatisfaction with safety,
security and comfort

a rewarding
S Creating
workplace environment

Respect for human rights

Improving satisfaction by providing tangible andintangible services (safety, security and comfort)

⚫
⚫

⚫
⚫
⚫

⚫

⚫

Implementing water-saving construction work
Reducing waste and promoting recycling⚫

Ratio of green lease agreements*

Improving overall tenant satisfaction (safety, security andcomfort)⚫

Average tenant satisfaction score*

Fostering professionals who support corporate growth

Building an efficient business structure⚫

Improvement of business efficiency and process

Creating a rewarding workplace environment⚫

Promoting diversity & inclusion⚫

Compliance with norms and laws concerning respectfor human rights⚫

Target 2030: Achieving 10% reduction in water use per
floor area (compared with the 2017 level)

Expansion of green lease agreement

⚫

⚫

SDGs

Target 2030: Environmental certification acquisition
coverage rate of 90% or more (4-star/"A" rating or higher)
Target 2050: Environmental certification acquisition
coverage rate of 100% (4-star/"A" rating or higher)
Target 2030: Achieving 46.2％ reduction in GHG emissions(compared to the 2019 level)
Target 2050: Achieving net zero
⚫ Rate of introduction of renewable energy*⚫ Ratio of LED lighting*

Building industry-leading climate change risk response
capabilities

Strengthening human resources through training andself-development support

Maintaining and improving physical and mental health

Target/KPI

Realization of physical, mental health and work-lifebalance
Providing an environment where each person can play anactive role⚫
⚫

Training expenses per employee*
Training hours per employee*(Target) 70% or more of annual paid leave taken (everyyear)*⚫ Percentage of participation in health examinations*⚫ Overtime hours per employee*⚫
⚫

Average employee satisfaction*
Response rate of employee satisfaction survey*

Promoting the active participation of diverse humanresources(Target) Ratio of female managers of 10% or more in2030*⚫ Ratio of female employees*⚫ Number of employees aged 60 or over*Raising awareness of human right policies both inside andoutside the company⚫

Human rights training (every year)

Number of results briefings per year*
Number of meetings with institutional investors in Japan*
Number of meetings with overseas institutional investors*⚫ Number of events for individual investors in which JPR
participates*⚫

Implementation of transparent management throughactive IR

Strengthening corporate

G governanceIndustry-leading information disclosure⚫ Active dialogue with investors⚫

⚫
⚫

GRESB Assessment*
MSCI ESG scores*⚫ CDP evaluation*⚫

Improving overall strength of Sustainability Promotion
Framework⚫

Obtaining industry-leading ESG valuation⚫

Enhancing a strong corporate governance⚫

Maintaining a strong corporate governance(Target) 12 Compliance Committee meetings per year*(Target) Six compliance workshops per year*(Target) A compliance workshop participation rate of 100%*⚫ Internal audits per year*

Strengthening risk management⚫

Building industry-leading management capabilities(Target) Four or more Risk Management Committee
meetings per year*48

4. Appendix

JPR’s Commitment to Sustainability (2):Governance

The plan is to introduce asset management fees based on sustainability indicators from January 2024.

Asset management fee (from January 2024)

JPR officers◼

Bolstering supervisory functions, enabling supervision from a broad
perspective to ensure soundness(As of December 31, 2023)

Position

Executive
Officer

Name

Attendance atmeetings of Boardof Directors in 44th
fiscal period

Current Assignment

Yoshihiro President and CEO Tokyo Realty Investment
JozakiManagement, Inc.

◼

In light of the changes in the environment surrounding the real estatemarket, JPR is planning to introduce asset management fees based onsustainability indicators and to increase the connection between thefees and returns for investors.
Item

Calculation of compensation
Total acquisition price×0.045%+ fees based on sustainability indicators ((i) to (iii) below)

6/6(100%)
Management fee 1

6/6(100%)

Supervising
Officer

MasatoDenawaSupervising
OfficerGroup Representative Partner of Gyosei Certified
Nobuhisa
Public Tax & Accountants' Co.
Kusanagi
Representative Partner of Nobuhisa Kusanagi Office

Supervising
Officer

Konomi
Ikebe

Partner Attorney, Spring Partners

Grand Fellow, Graduate School of Horticulture,
Chiba University(Asset-linked fee)

6/6
(100%)

Management fee 2(Revenue-linked fee)Management fee 3

6/6(100%)(Cash distributionlinked fee)Management fee 4(Acquisition/Merger
fee)

Asset management fee (results)

Management fee 5(Sale fee)

Item
Management fee 1(Asset-linked fee)Management fee 2(Revenue-linked fee)Management fee 3(Cash distribution-linked
fee)Management fees 4/5(Acquisition/Merger fee)
(Sale fee)

Calculation of compensation
Total acquisition price×0.05%(i) GHG emissions: Total acquisition price × 0.002％ × a multiplier in Table
1(ii) Environmental certification: Acquisition price ×0.001% × a multiplier inTable 2(iii) GRESB Assessment: Total acquisition price × 0.001% × a multiplier inTable 3
Total revenue × 1.2% (No change)
Distributable base amount (excluding gains/losses on real estate sales, etc.)
×3.8%×Rate of fluctuation of distributable base amount per unit
Acquisition price ×1.0% (0.5% when acquired from related parties)
Gain on sale of property ×12.5%*1* The amount obtained when the sale price is multiplied by 0.5% shall be the minimum fee.

Remuneration(Dec. ’23 period)

248 million yen

Share(Table 1)

35.0%

Multiplier

1 + GHG (green house gas) emissions reduction rate

(Table 2)
Total revenue×1.2%

209 million yen

29.5%

Distributable base amount (including
gains/losses on real estate sales, etc.)
×3.8%×Rate of fluctuation of distributablebase amount per unit

251 million yen

35.5%

Sale price × 0.5%

Environmental certification★~★★★

(CASBEE/DBJ Green Building/BELS)(includes uncertified
assets)

★★★★

★★★★★

Multiplier

1.0

1.1

1.2

(Table 3)
-

-

GRESB
Assessment

★

★★

★★★

★★★★

★★★★★

Multiplier

0.8

0.9

1.0

1.1

1.2

49

4. Appendix

JPR’s Commitment to Sustainability (3):Identification of risks andopportunities associated with climate change

JPR considers that climate change will have a significant impact on its business.
It identifies risks and opportunities and assesses their impacts in order to develop a response.
Identification of risks and opportunities created by climate change◼
◼

Identify risks and opportunities associated with climate change and analyze the effects in the 1.5℃/2℃ scenario and in the 4℃ scenario.
Aim to reduce greenhouse gas emissions and mitigate the effects of JPR's business activities on climate change by using energy efficiently and promoting
the use of renewable energy.

➢ Identify risks and examine their financial impact
Type ofrisks

Transition
risk

Physicalrisks

Risk that was identified

Financial impact

Time span

Level of impact
1.5℃/2℃

Level of impact
4℃

Strategies

Increase in operation costs
resulting from the introductionof a carbon tax

Carbon tax imposed under tightened environmental laws and regulations
leads to an increase in the risks surrounding the operations of owned
properties.

Medium to
long

High

High

Promoting replacement with LED lighting⚫ Switching to contracts with electric power companies withlow emission coefficients⚫ ZEB Certification acquired

Cost increase resulting from theincrease of energy prices

Rises in electricity rates, etc. caused by increases in fossil fuel prices lead torises in operating costs.

Short,
medium,and longHigh

Middle⚫

Loss of tenants due to a delay intaking green building measures

A delay in taking green building measures results in a failure to cater to theneeds of companies aiming to achieve carbon neutrality. This leads to a lossof tenants and a loss of fixed-amount income, such as rents and CAM charges.

Short,
medium,and long

High

Low

Withdrawal of investors due to adelay in taking green building
measures

A delay in taking green building measures leads to financial institutions'withdrawal from loans and investments, resulting in increased funding costs.

Medium to
long

High

Low

Increase in energy consumption
attributed to chronic
temperature increase

Rises in temperature in summer associated with climate change causing an
increased use of air-conditioning, which in turn leads to higher energy costs.

Medium tolong

MiddleMiddle⚫

⚫

Power saving
Increasing the percentage of properties that have acquired
environmental certification

Promoting financial institutions' understanding by increasing
the number of green buildings in the portfolio and disclosing
appropriate information⚫ Reinforcing the funding base by enhancing relationships withinvestors who are interested in ESG.
⚫

⚫
⚫

Requesting tenants to introduce the Cool Biz dress code (noties, short-sleeve shirts)
Reducing consumption of the standby power of airconditioning, etc.

Monitoring the latest risks in areas where individual
properties are located⚫ Regular onsite inspection of each property's equipment
conditions⚫ Improving and repairing equipment as a measures
addressing water damage⚫ Increasing resilience by holding disaster drills⚫

Increase in repair costs
associated with water damage
risk

If the risk of water damage due to climate change, such as that caused bytyphoons or flooding, increases owned properties may incur water damage,resulting in the generation of repair costs.

Short,
medium,and long

High

High

➢ Identify opportunities and examine their financial impact
Type ofopportunity

Opportunity that was
identified

Opportunities

Increase in rents for green
buildings

Financial impact

Time span

Tenants are increasingly demanding properties with high environmental
performance due to tougher laws and regulations, resulting in an increase of
asset value and real estate rental revenues.

Medium tolong

Level of impact Level of impact
1.5℃/2℃
4℃
High

Low

Strategies⚫

Increasing the percentage of properties that have acquired
environmental certification50

4. Appendix

Unitholders (as of December 31, 2023)■ Number of units by unitholder type
（997,178 units in total）
Securities
Companies
25,034(3%)
Foreign Investors
176,735(18%)

Other domestic
corporations
81,979(8%)

Individuals
35,621(4%)

Financial
Institutions
677,809(68%)
Of which,
investment
Trusts内、
投信組入
incorporating
372,362JPR units
387,858(37%)■ Top unitholders
Rank

Name

Number of
Owned
Units

1

Custody Bank of Japan, Ltd. (Trust Account)

312,629

31.4

2

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

149,591

15.0

3

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

47,6784.8

4Tokyo Tatemono Co., Ltd.

29,3002.9

5Kawasaki Gakuen

25,000

2.5

6

Meiji Yasuda Life Insurance Company

24,0002.4

7

SSBTC CLIENT OMNIBUS ACCOUNT

17,958

1.8

8

STATE STREET BANK WEST CLIENTTREATY 505234

13,903

1.4

9

JP MORGAN CHASE BANK 385781

12,606

1.3

10

STATE STREET BANK AND TRUSTCOMPANY 505103

12,511

1.3

645,176

64.7

Share
(%)

(39%)

■ Number of unitholders by unitholder type(10,340 unitholders in total)
Foreign Investors
267
(3%)

Securities Companies
23(0%)

Other domestic
corporations
204
(2%)

Financial Institutions
182
(2%)

Individuals
9,664
(93%)

Total

51

4. Appendix

Investment Unit Price and Distribution per Unit

■ Changes in unit price(yen)

800,000
600,000
400,000
200,000
0
'02.6

'03.6

'04.6

'05.6

'06.6

'07.6

'08.6

'09.6

'10.6

'11.6

'12.6

'13.6

'14.6

'15.6

'16.6

'17.6

'18.6

'19.6

'20.6

'21.6

'22.6

'23.6

'18.6

'19.6

'20.6

'21.6

'22.6

'23.6

(year/
month)■ Changes in JPR dividend yield
(%)

10.0
8.0
6.0
4.0
2.0
0.0
-2.0
'02.6

'03.6

'04.6

'05.6

'06.6

'07.6

'08.6

'09.6

'10.6

'11.6

'12.6

'13.6

'14.6

'15.6

'16.6

'17.6

(year/
month)■ Changes in cash distribution per unit
(yen)

6,912 6,873
5,738

6,081

6,671 6,370 6,411 6,509 6,873 6,996 6,671

7,122 7,092

6,933 6,770
5,680 5,611 5,876

6,430

6,093 6,031 6,006

6,588
6,150 6,351 6,419

22

25

6,756 7,048

7,213 7,223 7,245 7,326 7,380 7,493

7,595 7,750 7,657 7,550 7,800 7,750 7,600 7,600

31

37

3,731
2,545

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

23

24

26

27

28

29

30

32

33

34

35

36

38

39

40

41

42

43

44

（period）

1. Prepared by TRIM based on Refinitiv data.
2. Nikkei stock average (indexation) in Changes in Unit Price is calculated on the basis that June 14, 2002 = 200,000 yen.
3. JPR dividend yield is calculated by dividing the sum of dividend for the last two periods by daily unit price.

52

4. Appendix

Asset Manager■ Summary of asset manager(as of April 1, 2024)

Name

Tokyo Tatemono Realty Investment Management, Inc.
(TRIM)

Address

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

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO

Yoshihiro Jozaki

Directors

7 (4 full-time and 3 part-time)

Number of Officers

48■ Organization chart(as of December 31, 2023)■ Sponsors(as of December 31, 2023)

Name

Tokyo Tatemono Co., Ltd.

Address

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

Date of Foundation

October 1, 1896

Main Business

Development, leasing and management of office buildings,
commercial facilities, and others
Development, sales, leasing and management of condominiums
and detached houses
Sale/purchase, brokerage and consulting for real estate;parking lot development and management
Leisure business, Logistics facilities development, asset
management business, overseas business, and real estateappraisal

No. of seconded staff from sponsors

10■ Sponsors support

Shareholder’s Meeting
Auditors

No.

Summary of sponsors support

1

Personnel support through dispatching personnel to TRIM
and other measures

2

Provision of know-how on real estate management ingeneral, including tenant leasing and technical support

3

Supply of properties and provision on information onproperty acquisition

Board of Directors
President and CEO
Investment Committee

Compliance Committee
Risk Management Committee
Compliance OfficeSustainability Committee

Investment
Management
Division I
Investment
Management
Department I
Investment
Management
Department II
Investment
Management
Department III

Investment
Management
Division II
InvestManagement
Department

Financial Management
Division
Investment
Strategy
Department

Asset Engineering
Department

Investment
Research
Department

Sustainability
Group

Finance & IR
Department

FinancialGroup

Corporate Business
Management
Department

Investor
Relations
Group

53

4. Appendix

Large supply of offices■ Supply, absorption and vacancy rates in Tokyo’s 23 wards■ Breakdown of office building supply by area and by size
(forecast)(By area)(year)

Average new supply in
1986-2023: 103

Average new supply
in 2024-2027: 852023

75％ (940,000 m2)(320,000 m2)
25% (32万㎡)

2024

72％ (520,000 m2)(210,000 m2)
28% (21万㎡)

2025

75％ (1,020,000 m2)(340,000 m2)
25% (34万㎡)

2026

72％ (520,000 m2)(200,000 m2)
28% (20万㎡)

179
161

2027

141

136

55％ (320,000 m2)(26万㎡)m2)
45% (260,000(26万㎡)

126

3 central wards

Other 20 wards(By size)

96
85 86

85

73

5.6

69

72

5.9

61

(year)

80% (1,000,000 m2)

2023

58

20% (260,000 m2)

48
37

4.0

2024

76% (550,000 m2)

24% (170,000 m2)

2.6
1.9

1.8

2018

2019

-2

2017

2020

2021

2022

2023

2024

2025

2026

2027

2025

66% (900,000 m2)

34% (460,000 m2)

2026

68% (490,000 m2)

32% (230,000 m2)

2027

75% (440,000 m2)（年）

100,000 sqm or more

25% (140,000 m2)

Less than 100,000 sqm

1. Source: Prepared by TRIM based on the 2023 Survey of Large Office Building Market Trends in Tokyo’s 23 Wards published on May 25, 2023.
2. Absorption refers to newly occupied space (Vacant space as of end of previous period + New supply － Vacant space as of end of current period).

54

4. Appendix

Office Property Leasing Market■ Changes in the supply and the vacancy rate of Tokyo CBDs
（tsubo）

Supply(yen/tsubo)（%）

Vacancy rate

14.5

600,000■ Changes in the average rent of Tokyo CBDs
Class A Bldg.

Class B Bldg.

Class C Bldg.

45,00012.5

500,000

10.5
400,000

35,0008.5

300,000

25,0006.5

200,000

4.5

100,000

2.5

0

0.5

15,0005,000'11.12(year)'13.12'15.12'17.12'19.12'21.12'23.12 (year/

month)

1. Prepared by TRIM based on the office market information published by Miki Shoji Co., Ltd.

■ Monthly vacancy rates in Tokyo CBDs

■ Changes in the vacancy rate of Tokyo CBDs（%）

Chiyoda Ward
Minato Ward
Shibuya Ward（%）

Chuo Ward
Shinjuku Ward
Tokyo's Central 5 Wards

Class A Bldg.

Class B Bldg.

Class C Bldg.

12.0
10.0

9.0
8.0
7.0
6.0
5.0

4.0
2.0

3.0

0.0
'11.12

1.0

'23.1

'23.2

'23.3

'23.4

'23.5

'23.6

'23.7

'23.8

'23.9

'23.10 '23.11 '23.12 (year/

1. Source: Prepared by TRIM based on data published by Miki Shoji Co., Ltd.

month)'13.12'15.12'17.12'19.12'21.12'23.12 (year/

month)

1. Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and NLI Research Institute.
2. Please refer to glossary for definition of building classes.

55

4. Appendix

Commuting to the Office in JapanThe functions and roles offices are expected to fulfil are becoming more diverse andsophisticated, and the selection of properties based on factors such as location is expected tocontinue going forward.
■ Companies' Approach Towards Office Environment
The point regarded as most important by companies when moving office is "location."
Also when selecting a location, importance is attached to "commuting convenience" fromthe viewpoint of securing human resources.
(Degree of importance when companies consider moving to a new office)The functions and roles offices are expected to fulfil are becoming more diverse andsophisticated as a means of solving management-related issues.
Companies are increasingly aware of the following as issues tobe addressed when developing the office environment

Location・ Strengthening of internal communication and collaboration

Costs

・ Improvement of employee engagement

Comfort・ Improvement of the well-being of employees

Building earthquake performance and BCP
responsiveness・ Strengthening of recruiting, retention, etc.

Building management system
Building security* Based on Mori Building Co., Ltd.'s 2023 Survey of Office Needs inTokyo's Core 23 Cities

Advantages for recruiting human resources
Spaciousness of each floor■ Trends in office attendance rates in Tokyo

Lease contract options
High-grade feel of building

Many companies attach importance to communication within the office, and theoffice attendance rate has recovered to over 80%.

Consideration for the environment
Elevators
Parking lot

0%

90.0%

Very important
Important

Co-working spaces, etc.

25%

50%

75%

100%
80.0%

(Degree of importance when selecting location)
Employees' commuting convenience
Disaster-resistant city

70.0%

Convenience of visiting business partners, etc.
Wide-area transport convenience including
Shinkansen and airports

Very important
ImportantAvailability of restaurants nearby

0%

25%

50%

75%

1. Prepared by TRIM based on CBRE's Tenant Opinion Survey Concerning Office Use.

60.0%

100%

2021.12021.72022.12022.72023.12023.7(year/month)

1. Prepared by TRIM based on the results of a survey on the percentage of telework of theTokyo Metropolitan Government.

56

4. Appendix

For-Sale Property Market■Expected cap rate of retail properties andeconomy hotel for lodging■Expected cap rate of office (major cities)(%)

Tokyo (Marunouchi, Otemachi)
NagoyaOsaka (Midosuji)
Osaka (Umeda)
Fukuoka

Retail property (Ginza)
Retail property (Osaka)
Economy hotel for lodging (Tokyo)(%)

Economy hotel for lodging (Osaka)

8.0

7.5

7.0
6.5

6.0
5.5
5.0
4.5
4.0

3.5

3.0

0
2.5

2.00

(year/
month)(year/
month)

1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute57

Portfolio Map

4. Appendix

Chuo, Minato, Shinjuku, Shinagawa■Central Tokyo Chiyoda,
and Shibuya Wards

SaitamaMusashiurawa
Prefecture

A-30

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

A-9
A-24
A-4

A-23

Chiyoda WardTokyo

B-15

A-1
A-2

A-26

B-8
A-13

A-5

Tachikawa

B-7
B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

A-6

Minato Ward

A-1

Kinshicho

B-14

Chiba

B-4

KawasakiB-5

Hamamatsucho

A-15

B-1

B-2

A-25

A-29

B-11

Musashikosugi

Chuo Ward

ShibuyaB-7

ShinagawaShinbashi

A-18

Chiba
Prefecture

B-3

Kawaguchi
B-1

A-21

Harajuku

B-6

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

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

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

Kanagawa Shin-Yokohama
Prefecture
Yokohama
B-12
B-3

TamachiB-10

Kamioka

A-6

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-15

Nakano Central Park East

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

■Other Cities
GotandaShinagawa
A-16

A-10

OhsakiShinagawa Ward
A-1

Kanematsu Bldg.

A-2

Kanematsu Bldg. Annex

A-3

JPR Ningyo-cho Bldg.

A-4

Shin-Kojimachi Bldg.

A-18

JPR Harajuku Bldg.

A-6

MS Shibaura Bldg.

A-9

JPR Ichigaya Bldg.

A-10

Oval Court Ohsaki Mark West

A-11

Shinjuku Square Tower

A-12

BYGS Shinjuku Bldg.

A-13

Across Shinkawa Bldg. Annex

A-14

Shinjuku Center Bldg.

A-15

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi West

C-23

GRAND FRONT OSAKA (Umekita Plaza and South Bldg.)

C-24

GRAND FRONT OSAKA (North Bldg.)

C-25

JPR Dojima WestC-5

JPR Chayamachi Bldg.
SendaiMinami Azabu Bldg.

A-26

A-16

Shinagawa Canal Bldg.

A-27

JPR Kojimachi Bldg.

C-14

Tenjin 121 Bldg.

A-17

Rokubancho Bldg.

A-28

Otemachi Financial City North Tower

C-20

Yakuin Business Garden

A-29

Tokyo Tatemono Higashi Shibuya Bldg.

C-6

FUNDES Tenjin Nishidori

A-30

Ochanomizu Sola City

A-20

JPR Nihonbashi-horidome Bldg.

A-21

JPR Sendagaya Bldg.

Tokyo Square Garden

A-1

JPR Shibuya Tower Records Bldg.

A-3

JPR Jingumae 432

A-4

Shinjuku Sanchome East Bldg.

(Land with Leasehold Interest)

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-24

Science Plaza - Yonbancho Plaza

A-6

JPR Ginza Namiki-dori Bldg.

A-25

Shibadaimon Center Bldg.

A-7

FUNDES Suidoubashi

A-22

Ginza Sanwa Bldg.

A-23

The Otemachi Tower

Niigata

NagoyaKobe

Fukuoka

Osaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

58

4. Appendix

Portfolio List (Central Tokyo)

A-1 Kanematsu Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

A-2 Kanematsu Bldg. Annex
16,276 million yen
14,995 ㎡
95.0％
Kyobashi,Chuo-ku
2001.12
1993.2A-6 MS Shibaura Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Date
Completed

Acquisition
Date
Completed

A-3 JPR Ningyo-cho Bldg.
2,874 million yen
4,351 ㎡
100.0％
Kyobashi,Chuo-ku
2001.12
1993.2A-9 JPR Ichigaya Bldg.
11,200 million yen
31,020 ㎡
100.0％
Shibaura,
Minato-ku
2003.3
1988.2

A-12 BYGS Shinjuku Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

25,733 ㎡
99.8％
Shinjuku,
Shinjuku-ku‘04.11/’05.4/‘10.7
1985.4

A-16 Shinagawa Canal Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

5,888 ㎡
100.0％
Kudanminami,
Chiyoda-ku
2004.5
1989.3710 million yen
5,535 ㎡
100.0％
Shinkawa,
Chuo-ku
2004.111994.6

A-17 Rokubancho Building

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,041 million yen

Acquisition
Date
Completed‘08.12/’19.3

5,216 ㎡
100.0％
Konan, Minato-ku

2008.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Date
Completed

A-4 Shin-Kojimachi Bldg.
2,100 million yen
4,117 ㎡
100.0％
Chuo Ward
Nihonbashiningyocho, Chuo-ku
2001.11
1989.12

A-10 Oval Court Ohsaki Mark West5,100 million yen

A-13 Across Shinkawa Bldg. Annex
15,121 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed3,500 million yen
28,575 ㎡
100.0％
Higashigotanda,
Shinagawa-ku
2004.6
2001.6

A-14 Shinjuku Center Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

4,205 ㎡
100.0％
Rokubancho,
Chiyoda-ku
2009.12
1991.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Date
Completed

2,420 million yen
5,152 ㎡
100.0％
Kojimachi,
Chiyoda-ku‘01.11/’02.11/’04.11
1984.10

A-11 Shinjuku Square Tower
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

14,966 million yen
78,796 ㎡ (entire
redevelopment area)

98.5％
Nishishinjuku,
Shinjuku-ku‘04.7/’08.9/‘15.3/’15.10
1994.10

A-15 Minami Azabu Bldg.
24,320 million yen
176,607 ㎡
96.6％
Nishishinjuku,
Shinjuku-ku‘08.3/’22.12
1979.10

A-18 JPR Harajuku Bldg.
2,800 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

3,760 million yen
4,570 ㎡
100.0％
Minamiazabu,
Minato-ku
2008.7
1992.6

A-20 JPR Nihonbashi-horidome Building
8,400 million yen
6,466 ㎡
88.6％
Jingumae,
Shibuya-ku
2009.12
1989.3AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

5,100 million yen
7,190 ㎡
100.0％
Nihonbashihorido
mecho, Chuo-ku
2010.3
2002.6

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

59

4. Appendix

Portfolio List (Central Tokyo)

A-21 JPR Sendagaya Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

15,050 million yen
7,683 ㎡
100.0％
Sendagaya,
Shibuya-ku
2010.52009.5

A-25 Shibadaimon Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

4,213 million yen
11,419 ㎡
100.0％
Shibadaimon,
Minato-ku‘13.12/’14.7
1993.7

A-29 Tokyo Tatemono Higashi-Shibuya Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

11,300 million yen
15,662 ㎡
100.0％
Higashi,
Shibuya-ku
2022.1
1993.5A-4 Shinjuku Sanchome East Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
CompletedA-23 The Otemachi Tower(Land with Leasehold Interest)

A-22 Ginza Sanwa Bldg.

2,740 million yen
24,617 ㎡
100.0％
Shinjuku,
Shinjuku-ku‘07.3/’08.4
2007.1

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,400 million yen

Acquisition
Date
Completed2011.88,851 ㎡
100.0％
Ginza, Chuo-ku

1982.10

Aｰ26 Tokyo Square Garden
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Date
Completed112,645 ㎡
98.6％
Kyobashi, Chuoku‘17.2/’17.4
2013.2Acquisition
Date
Completed

Period-end
occupancy rate
Address

100.0％

Acquisition
Date
Completed

11,034 ㎡

Otemachi,Chiyoda-ku
2012.32014.4 (Reference)

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

98,897 ㎡
99.1%
Kandasurugadai,
Chiyoda-ku
2023.42013.23,400 million yen
71,957 ㎡
100.0％
Yurakucho,
Chiyoda-ku
2008.82007.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
CompletedA-24 Science Plaza - Yonbancho Plaza
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,660 million yen
24,560 ㎡
97.5％
Yonbancho,
Chiyoda-ku
2013.12
1995.2

A-28 Otemachi Financial City North Tower
5,750 million yen
4,438 ㎡
100.0％
Kojimachi,
Chiyoda-ku
2019.6
1999.2A-1 JPR Shibuya Tower Records Bldg.
6,490 million yen

A-5 Yurakucho Ekimae Building(Yurakucho Itocia)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

36,000 million yen

A-27 JPR Kojimachi Bldg.
18,400 million yen

A-30 Ochanomizu Sola City
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

Acquisition
Price
Site area

12,000 million yen
8,449 ㎡
100.0％
Jinnan,Shibuya-ku
2003.6
1992.2A-6 JPR Ginza Namiki-dori Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,100 million yen

Acquisition
Date
Completed2016.12

1,821 ㎡
100.0％
Ginza, Chuo-ku

2008.6

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

11,400 million yen
239,769 ㎡(including South Tower)

99.9％
Otemachi,Chiyoda-ku
2020.122012.10A-3 JPR Jingumae 432
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

4,275 million yen
1,066 ㎡
77.1％
Jingumae,
Shibuya-ku
2006.32006.2A-7 FUNDES Suidoubashi
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

3,250 million yen
1,477 ㎡
87.2％
Kandamisakicho,
Chiyoda-ku
2016.122015.7

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

60

4. Appendix

Portfolio List (Central Tokyo and Greater Tokyo)

B-1 Arca East

B-2 JPR Chiba Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

5,880 million yen

Acquisition
Date
Completed2001.1134,281 ㎡
100.0％
Kinshi, Sumida-ku

1997.3B-6 Kawaguchi Center Bldg.
8,100 million yen
28,420 ㎡
100.0％
Kawaguchi,
Saitama2004.2Acquisition
Date
Completed1994.2

B-10 Yume-ooka Office Tower

Acquisition
Date
Completed

2,350 million yen

Acquisition
Date
Completed2001.12

9,072 ㎡
98.4％
Chiba, Chiba

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed1991.1

185,974 ㎡
100.0％
Yokohama,
Kanagawa
2007.7
1997.3B-14 Sencity Bldg.

8,490 ㎡
100.0％
Matsugaya,
Taito-ku
2004.3
1992.1031,300 million yen

Period-end
occupancy rate
Address

96.9％

Acquisition
Date
Completed2009.6257,842 ㎡(including retail andresidential blocks)

Taihei, Sumida-ku

B-15 Nakano Central Park East

Period-end
occupancy rate
Address

91.3％
Chiba, Chiba

AddressNakano, Nakanoku

Acquisition
Date
Completed2020.3Acquisition
Date2024.3.1(Forecast)Completed2012.3

1993.4

Yokohama,
Kanagawa
2001.11
1989.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,188 million yen

Acquisition
Date
Completed‘05.9/’07.2

14,706 ㎡
100.0％
Tachikawa, Tokyo

1994.12AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

1,490 million yen
7,781 ㎡
91.0％
Yokohama,
Kanagawa‘02.9/’13.3
1991.8B-9 Rise Arena Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

13,131 million yen
91,280 ㎡ (including
residential block)100.0％
Higashiikebukuro,
Toshima-ku‘07.3/’21.10
2007.1

B-13 JPR Omiya Bldg.
7,000 million yen
8,772 ㎡
100.0％
Yokohama,
Kanagawa
2010.12
1981.5B-1 Tanashi ASTA

13,870 million yen
redevelopment area)

100.0％

B-5 Shinyokohama 2nd Center Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

6,090 million yen

Acquisition
Date
Completed2013.39,203 ㎡
100.0％
Saitama, Saitama

2009.2

2006.2AcquisitionPrice
Total Floor
Space

158,663 ㎡ (entire

9,146 ㎡

B-12 JPR Yokohama Bldg.

AcquisitionPrice
Total Floor
Space

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

2,927 million yen

B-8 Tachikawa Business Center Bldg.
3,250 million yen

B-11 Olinas Tower
6,510 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-7 JPR Ueno East Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-3 JPR Yokohama Nihon Odori Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

28,800 million yen
37,870㎡ー

B-3 Cupo-la Main Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,200 million yen

Acquisition
Date
Completed2001.1180,675 ㎡
100.0％
Nishitokyo, Tokyo

1995.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,100 million yen
48,321 ㎡
100.0％
Kawaguchi,
Saitama2006.32006.1

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

61

4. Appendix

Portfolio List (Greater Tokyo and Other Cities)
B-5 Musashiurawa Shopping Square

B-4 JPR Musashikosugi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

7,254 million yen
18,394 ㎡
100.0％
Kawasaki,Kanagawa
2006.91983.3C-1 Niigata Ekinan Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,140 million yen

Acquisition
Date
Completed2001.11

19,950 ㎡
94.5％
Niigata, Niigata

1996.3C-14 Tenjin 121 Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

4,335 million yen

Acquisition
Date
Completed2007.328,930 ㎡
100.0％
Saitama, Saitama

2005.10C-9 JPR Naha Bldg.

2,810 million yen

Acquisition
Date
Completed2002.68,690 ㎡
100.0％
Fukuoka, Fukuoka

2000.7

C-21 C-21 JPR Shinsaibashi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

5,430 million yen

Acquisition
Date
Completed2005.55,303 ㎡
93.9％
Osaka, Osaka

2003.2(Extended 2005.1)

B-7 FUNDES Ueno

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

15,080 million yen
36,902 ㎡
98.4％
Kawasaki,Kanagawa
2007.4

Acquisition
Date
Completed2003.8

C-12 Sompo Japan Sendai Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

1,560 million yen

Acquisition
Date
Completed2001.115,780 ㎡
100.0％
Naha, Okinawa

1991.10

C-17 JPR Dojima Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-6 Kawasaki Dice Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,140 million yen

Acquisition
Date
Completed2004.1

5,696 ㎡
100.0％
Osaka, Osaka

1993.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

10,783 ㎡
98.2％
Sendai, Miyagi
2002.6
1997.12AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,750 million yen

Acquisition
Date
Completed2020.1

7,738 ㎡
99.9％
Osaka, Osaka

1986.9Acquisition
Date
Completed2019.62,235 ㎡
100.0％
Ueno, Taito-ku

2017.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

1,670 million yen
6,715 ㎡
99.8％
Wakayama,
Wakayama
2002.6
1996.7

C-20 Yakuin Business Garden

4,137 million yen
10,201 ㎡
99.8％
Nagoya, Aichi
2005.3
1991.3C-23 GRAND FRONT OSAKA(Umekita Plaza and South Building)C-22 JPR Shinsaibashi West3,800 million yen

C-13 Sompo Japan Wakayama Bldg.

3,150 million yen

C-19 JPR Nagoya Fushimi Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

11,800 million yen

Acquisition
Date
Completed2021.12

10,226 ㎡ (Umekita Plaza)
181,371 ㎡ (South Bldg.)
93.6％
Osaka, Osaka‘13.2 (Umekita Plaza)’13.3 (South Bldg.)

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,996 million yen

Acquisition
Date
Completed2012.822,286 ㎡
99.9％
Fukuoka, Fukuoka

2009.1

C-24 GRAND FRONT OSAKA (North
Building)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

9,500 million yen

Acquisition
Date
Completed2021.12290,030 ㎡
98.2％
Osaka, Osaka

2013.2

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

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4. Appendix

Portfolio List (Other Cities)

C-25 JPR Dojima WestC-4 Housing Design Center Kobe

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,460 million yen

Acquisition
Date
Completed2023.1

4,977㎡
83.2%
Osaka, Osaka

1996.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

7,220 million yen

Acquisition
Date
Completed2005.933,877㎡
100.0％
Kobe, Hyogo

1994.6C-6 FUNDES Tenjin Nishi DoriC-5 JPR Chayamachi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

6,000 million yen

Acquisition
Date
Completed2006.83,219㎡
100.0％
Osaka, Osaka

1994.6

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,310 million yen

Acquisition
Date
Completed2023.1

1,135㎡
100.0%
Fukuoka, Fukuoka

2022.3

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

63

4. Appendix

Introduction to the JPR Website http://www.jpr-reit.co.jp/8955

Expanding IR information with sustainability initiatives and diverse content and disseminatingtimely information
Sustainability Initiatives

A range of initiatives at JPR and TRIM are described in aneasy-to-understand way.

Chart Generator(IR Information)

Profitability indicators, etc. in different fiscal periods(up to 10 periods) are graphically compared.

• Operating results• Unitholder’s equity ratio• Per unit indicators• State of liabilities

Financial statements(financial information)

Financial statements are posted on the website for easier access.

• Balance Sheet• Statements of Income• Cash Flow Statement64

4. Appendix

Term

Glossary
Meaning

Acquisition Price

The sales price (not including acquisition costs, fixed property taxes and consumption taxes)
stated in the sales agreement concerning acquisition of a property owned by JPR (hereinafterreferred to as the “owned properties”) or a property to be acquired by JPR.

Asset size

The asset size refers to the total amount of the acquisition prices of the owned properties

Investment ratio

The investment ratio refers to the ratio of the acquisition price of relevant properties owned by
JPR to the total acquisition price of its portfolio.

Occupancy rate
based on concluded
contracts

Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded
contracts. When occupancy rate for each fiscal period is indicated, it represents the averageoccupancy rate as of the end of each month that belongs to the relevant fiscal period (period
average of occupancy rate at end of month). Furthermore, it may be described as “averageoccupancy rate” in order to distinguish it from “period-end occupancy rate.

Occupancy rate
based on generated
rents(Total leased space – total leased space during rent-free periods) / total leasable space

Average unit rent

Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease
contracts with tenants; for certain properties, the figure includes common charges, etc.
received by master lessees without being recorded as JPR’s revenue

Term

Meaning
The definitions of building classes used in “Ratio by grade/asset class“ on page 12 is as follows,which TRIM sets.
Target area: Tokyo’s 23 ward
Class S: Comprehensive consideration from Bldg. scale, location, Bldg. age, etc. of the following
Class AClass A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or moreClass B: Floor size of 200 tsubo or moreClass C: Floor size of 100 tsubo or more but less than 200 tsubo

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and“Changes in the vacancy rate of Tokyo CBDs” on page 55 are as follows, which Sanko Estate Co.,
Ltd. and NLI Research Institute sets.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage
of office buildings in surrounding wards (Gotanda/Osaki, Kita-shinagawa/Higashi-shinagawa,Yushima/Hongo/Koraku, Meguro-ku)
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age less than
15 years
Class B: Floor size of 200 tsubo or more, not applicable of A class building (including of building
except for A class of age more over 15 years)
Class C: Floor size of 100 tsubo or more but less than 200 tsubo

Properties acquired
using sponsor
pipelines

Properties acquired using sponsor pipelines refer to properties acquired from sponsors, etc. andproperties acquired based on information provided by sponsors. Sponsors, etc. represent thesponsor companies of JPR, their affiliated companies and special purpose companies (SPCs) inwhich the sponsors have made equity investment.

Ratio ofincrease/decrease
on rent revision

Rate of rent revision indicates the sum total of monthly rent after revision minus monthly rent
before revision upon contract renewal with rent revision (including neither upward or down
revision of rent) in each fiscal period, divided by monthly rent before revision.

Rate of tenant
replacement

Rate of tenant replacement indicates the sum total of monthly rent after tenant replacement
minus monthly rent before tenant replacement in each fiscal period, divided by monthly rent
before tenant replacement.

NOI yield

Rent revision

Rent revision indicates the sum total of monthly rent after revision minus monthly rent before
revision upon contract renewal with rent revision in each fiscal period. Upward revision indicates
only the amount of the upward revision and downward revision indicates only the amount of
the downward revision.

(Rental revenue - expenses related to rent business + depreciation) / acquisition price (bookvalue or market value, depending on the case) NOI yield is calculated using the above formula,by dividing acquisition price (book value or market value, depending on the case) in the formulaby 365 days and multiplying it by the number of business days of the relevant fiscal period. The
same also applies to "After depreciation yield" below.
(Rental revenue - real estate - expenses related to rent business) / book value

Tenant replacement

Tenant replacement indicates the sum total of monthly rent after tenant replacement minus
monthly rent before tenant replacement in each fiscal period. Upward revision (tenant
replacement) indicates only the increase in rent upon tenant replacement and downward
revision (tenant replacement) indicates only the decrease in rent upon tenant replacement.

After-depreciation
yield
Number of tenants

Rent gap

The rent gap for a month refers to, in lease contracts due for renewal during the four periods
from the period ending in June 2024, the ratio obtained by subtracting the total difference
between the lower limit of rent in the market range and the existing rent that is lower than thelower limit of rent in the market range from the total difference between the upper limit of rentin the market range and the existing rent (excluding new contracts, etc.) that exceeds theupper limit of rent in the market range and dividing that monthly difference by the monthly rent
for the month in question.

The number of tenants counts the parties with whom JPR has concluded lease contracts for thebuilding floors. When a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted inplural.

Ratio of long-term,
fixed interest ratedebts

Long-term interest-bearing debts with fixed interests / total interest-bearing debts

Average maturity

Weighted average calculated by dividing the remaining periods to the repayment dates andredemption dates of borrowings and investment corporation bonds at the end of each fiscal
period by the balance of respective borrowings and investment corporation bonds at the end ofeach fiscal period For borrowings with scheduled repayment in installments, the weighted
average of the remaining period to the scheduled repayment dates of each installment payment
in accordance with the relevant repayment amount

Average debt cost

(Sum total of interest expenses, interest expenses for investment corporation bonds, borrowingrelated expenses (excluding expenses related to early repayment of debts and expenses related
to the commitment line agreement), amortization of investment corporation bond issuance costs
and investment corporation bond administration expenses incurred in each fiscal period), divided
by the business days of the relevant fiscal period or the said period, and annualized bymultiplying by 365 days / average balance of debts and investment corporation bonds for eachfiscal period or for the said period

LTVInterest bearing debts / total assets at end of period (based on book value)
There are other methods for calculating LTV.LTV (based on valuation) = Interest bearing debt /(total assets at end of period + unrealized gains or losses from valuation) (based on market
value)
Unrealized gains or losses from valuation refer to the difference between appraisal value andbook value.
Based on book value unless otherwise specified.

Tokyo/ Other cities“Tokyo” defined by JPR as its investment area collectively refers to “Central Tokyo” and“Greater Tokyo” as defined below, and “Other Cities” refers to other regions.
・ Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
・ Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama
Prefectures

Ratio of unrealized
gains or losses(Appraisal value – book value) / book value

Cap rate

Capitalization rate by the direct capitalization method Direct capitalization method is one of themethods to calculate the value estimated by income approach (a method to estimate the valueof the target property by calculating the sum total of present value of the net operating income
which the target property is expected to generate in the future), and capitalizes the net
operating income of a certain period by using the capitalization rate.

65

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking statements
are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Tatemono Realty Investment
Management, Inc. (TRIM) based on information currently available, and are therefore not guarantees of future
performance. Actual results may differ materially from those in the forward-looking statements as a result ofvarious factors including known or unknown risks and uncertainties.
• This material is solely for the purpose of providing information, and is not intended for the purpose of offering or
soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.

• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.

66