thJapan Prime Realty Investment Corporation
Presentation Material
for the 21st Fiscal Period Ended June

2012

Japan Prime Realty Investment Corporation(Securities Code: 8955 TSE)
URL: http://www.jpr-reit.co.jp/jpr_e/
Tokyo Realty Investment Management, Inc.

Table of Contents
Financial Summary for the 21st Fiscal Period (Ended June 2012) andFuture Prospects

Appendix29.

Performance over the Past Five Fiscal Periods

4.

Financial Highlights for the 21st Fiscal Period Ended June 201230.

Historical Unitholder Composition

5.

Statement of Income and Retained Earnings for the 21st Fiscal Period

31.

Milestones since IPO and Historical Unit Price

6.

Comparison of Actual Results and Forecasts for the 21st Fiscal Period (Ended
June 2012)

32.

Changes in Variation between Appraisal Value and Book Value at End of
Period7.

Forecasts for the 22nd Fiscal Period

33.

Appraisals and Cap Rates at End of Period

8.

[Reference] Forecasts of Rent Revenue – Real Estate and Expenses Related toRent Business for the 23rd Fiscal Period

34.

NOI Yield by Property for the 21st Fiscal Period

35.

Contracting Status of Tenants by Property for the 21st Fiscal Period

36.

Office Vacancy Rates and Average Advertised Rents in Major Investment Areas

37.

Environmental Initiatives

38.

Governance Initiatives

9.

Balance Sheet as of the End of the 21st Fiscal Period

Management Results of the 21st Fiscal Period (Ended June 2012)11.

History of Portfolio Growth12.

Property Acquisition in the 21st Period

13.

Property Acquisition in the 22nd Period

14.

Changes in Occupancy Rates and Contract Changes

15.

Changes in Rent Revenue and Unit Rent

16.

Financial Strategy

17.

Equity Finance Overview

18.

Breakdown of Interest-Bearing Liabilities

19.

History of JPR’s Unit Price and Trade Volume (Jan. 4, 2012 – Aug. 10, 2012)

Future Management Strategy
21.

Future Management Policies

22.

Office Transaction Market Conditions

23.

Office Rental Market Conditions

24.

External Growth Strategy

25.

[Reference materials] Development Projects which Tokyo Tatemono is
Undertaking in the Tokyo Station Area

26.

Internal Growth Strategy

27.

Financial Strategy(Note) The figures to the left of each item represents the relevant page number.

2

Financial Summary for the 21st Fiscal Period(Ended June 2012) and Future Prospects

21stFinancial Highlights for the 21st Fiscal Period Ended June 2012
Achieved significant period-on-period increase in revenue and profits for the 21st fiscal period, thanks to the acquisition of Otemachi 1-6 Plan
(tentative name) (land with land leasehold), and secured DPU at a level matching forecast at beginning of period
Assume to deliver DPU of JPY 6,000 in the forecast for the 22nd fiscal period, the target level for normal operations without extraordinary
events, despite impact of dilution due to issuance of new investment units via public offering
20th Period

21st Period

21st Period (Jan. 1, 2012 – Jun. 30, 2012)(Forecast uponannouncement of the20th period financial
results)

Change from20th period

Change fromforecast

22nd Period(Jul. 1, 2012 – Dec. 31, 2012)
Change from21st period

Operating revenue

JPY 11,772 mn

JPY 12,174 mn

JPY 12,345 mn

4.9%

1.4%

JPY 12,859 mn

4.2%

Operating income

JPY 5,763 mn

JPY 6,224 mn

JPY 6,393 mn

10.9%

2.7%

JPY 6,624 mn

3.6%

Ordinary income

JPY 4,201 mn

JPY 4,577 mn

JPY 4,597 mn

9.4%

0.4%

JPY 4,951 mn

7.7%

Net income

JPY 4,200 mn

JPY 4,576 mn

JPY 4,596 mn

9.4%

0.4%

JPY 4,950 mn

7.7%Distribution per unit (DPU)

JPY 5,876

JPY 6,400

JPY 6,430

9.4%

0.5%

JPY 6,000-6.7%

Total number of investment units outstanding

715,000

715,000

715,000－%－%

825,000

15.4%

Properties owned at end of fiscal period

57 properties

58 properties

58 properties

1 property － properties

59 properties

1 property

JPY 344,984 mn

JPY 380,984 mn

JPY 380,984 mn

10.4%

－%

JPY 391,980 mn

2.9%

95.0%

94.6%

94.8%

-0.2%p

0.2%p

93.9%

-0.9%pTotal acquisition price
Average occupancy rate during period(Note) Amounts have been rounded down to the nearest specified unit and percentages have been rounded to the first decimal place.

Financial Results and Forecasts

Internal Growth Achieved period-on-period increase in DPU for the 21st fiscal period financial results due to suchfactors as increase in rent revenue through new property acquisition and the positive impact ofaccompanying property taxes being recorded as acquisition costs, and decrease in expenses
related to rent business including depreciation.
 Anticipates period-on-period increase in revenue and profits for the 22nd fiscal period due to
new property acquisition in the period, as well as to full-period contribution of property acquiredin the 21st fiscal period, but expects DPU to be JPY 6,000 in the face of dilution caused by the
public offering Occupancy rate at end of period
End of 21st fiscal period: 94.1% (down 1.5%p from 20th fiscal period, up 1.8%p from forecast)End of 22nd fiscal period (forecast): 93.7% (down 0.4%p from the 21st fiscal period)*Occupancy rate at end of 22nd fiscal period is based on confirmed contract status alone,reflecting newly concluded contracts and already notified cancellations, etc.
 Occupancy at end of 21st fiscal period decreased period-on-period due to the impact of tenant
cancellations at some properties
Tenant relocations is getting activated for the moment, but occupancy rate at end of 22nd fiscal
period is expected to decrease slightly, based on currently confirmed contract status

External Growth

Financial Strategy

 Acquired beneficiary interest in real estate of Otemachi 1-6 Plan (tentative name) (land with landleasehold) in March 2012 for JPY 3.6 billion (excluding acquisition costs and other expenses) bytaking advantage of sponsors’ pipelines, followed by acquisition of Yakuin Business Garden(located in Fukuoka) in August 2012 for JPY 10.9 billion (excluding acquisition costs and otherexpenses) For the moment, keep reinforcing collection and investigation of information from sponsors onproperty supply, given the still limited availability of excellent properties in the real estatetransaction market
 Continue focused investment in office properties in the greater Tokyo area

Ratio of interest-bearing debts at end of 21st fiscal period (on a unitholders’ capital basis): 53.2%(Ratio of interest-bearing debts is expected to have decreased to 48.5% after public offering)Credit ratings: R&I: AA-; S&P: A; and Moody’s: A3
Reduced borrowing costs for the 22nd fiscal period and after by making partial repayment ofborrowings before maturity (June 2012)
Issued additional investment units via public offering in July 2012
Number of units issued: 110,000 (planned), total procured amount: JPY 20.7 billion (planned)4Statement of Income and Retained Earnings for the 21st Fiscal Period
Achieved significant period-on-period increase in revenue and profits due to new property acquisition and other factors, andconducted partial repayment of borrowings before maturity to bolster earnings for the 22nd fiscal period and after(JPY mn)

Rental Revenues
Other rental revenues
Rent revenue - real estate (1)Operating revenue
Property and other taxes
Other expenses related to rent businessOutsourcing expenses
Utilities expenses
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts

OthersDepreciation
Expenses related to rent business (2)Asset management fees
Adm. service/custody fees
Directors' compensation
Trust fees
Other operating expenses
Operating expenses
Operating income
Profits ((1) - (2))
Net operating income (NOI)
Non-operating income
Interest expenses (incl. investment corporation bonds)

Borrowing expenses
Amortization of investment corporation bond issuance costs

Other non-operating expenses
Non-operating expenses
Ordinary income
Income before income taxes
Net income
Unappropriated retained earnings
Distributions per unit (Note 1)
Total number of units outstanding at end of period

20th Fiscal Period

21st Fiscal Period

Jul. 1, 2011 - Dec. 31, 2011

Jan. 1, 2012 - Jun. 30, 2012

Amount10,996776
11,772
11,772
1,061
2,471
510
711
28
335
218
554
112
1,824
5,357
421
74
6
43
105
6,009
5,763
6,415
8,239
10
1,402
147
20
3
1,573
4,201
4,201
4,200
4,226

%
93.4%
6.6%
100.0%
100.0%
9.0%
21.0%
4.3%
6.0%
0.2%
2.9%
1.9%
4.7%
1.0%
15.5%
45.5%
3.6%
0.6%
0.1%
0.4%
0.9%
51.0%
49.0%
54.5%
70.0%
0.1%
11.9%
1.2%
0.2%
0.0%
13.4%
35.7%
35.7%
35.7%
35.9%

5,876 yen
（715,000）

Amount11,626719
12,345
12,345
1,031
2,432
496
682
27
347
214
555
107
1,754
5,217
443
74
6
42
167
5,952
6,393
7,127
8,882
62
1,459
373
23
2
1,858
4,597
4,597
4,596
4,622
6,430 yen
(715,000)

%
94.2%
5.8%
100.0%
100.0%
8.4%
19.7%
4.0%
5.5%
0.2%
2.8%
1.7%
4.5%
0.9%
14.2%
42.3%
3.6%
0.6%
0.1%
0.3%
1.4%
48.2%
51.8%
57.7%
71.9%
0.5%
11.8%
3.0%
0.2%
0.0%
15.1%
37.2%
37.2%
37.2%
37.4%

1. Rent revenues

ChangeAmount
629
-56
573
573
-29
-39
-13
-28
-1
11
-3
1
-5
-69
-139
21
0
－
-1
61
-57
630
712
642
51
57
226
3
-1
285
396
396
396
395
554 yen(-)

・Properties owned at end of 19th period:

%
5.7%
-7.3%
4.9%
4.9%
-2.8%
-1.6%
-2.7%
-4.0%
-3.6%
3.4%
-1.7%
0.3%
-4.5%
-3.8%
-2.6%
5.1%
-0.1%

－246 mn yen

Increase by new move-ins:＋267 mn yen

Decrease by cancellation:－336 mn yen

Increase/decrease by contract revision:－183 mn yen(Note) The increase/decrease includes v ariations in 21st period due to f actors changed in 20th period)

・Properties acquired in 20th period:＋31 mn yen

・Properties acquired in 21st period:＋844 mn yen

2. Other rental revenues
・Properties owned at end of 19th period:
Incidental income:・Properties acquired in 20th period:－58 mn yen－55 mn yen＋2 mn yen

3. Expenses related to rent business・Properties owned at end of 19th period:－164 mn yen

Property and other taxes:－48 mn yen

Utilities expenses:－31 mn yen

Depreciation:－71 mn yen(Shinjuku Square: -38 mn yen, HDC Kobe; -26 mn yen, and others)

・Properties acquired in 20th period:＋24 mn yen－
・Properties acquired in 21st period:＋0 mn yen
-2.4%
58.6%
4. Other operating expenses-0.9%
・ Undeductible consumption taxes:＋61 mn yen
10.9%
11.1%
5. Non-operating income
7.8%
・Settlement of management association accounts ＋48 mn yen
478.7%
4.1%
6. Interest expenses
154.1%
・Interest expenses for loans:＋55 mn yen
16.3%-41.2%
7. Borrowing expenses
18.1%
・Fees for early repayment:＋198 mn yen
9.4%
9.4%
(Note 1) With regard to the cash distributions for the 20th and 21st fiscal periods, JPR includes part of the
9.4%
retained earnings brought forward that were internally reserved through the previous fiscal period,
with the aim of having the profit distributions deducted as expenses based on application of the
9.4%

special provision on taxation of investment corporations (Article 67-15 of the Act on Special
Measures Concerning Taxation) and in order to minimize the burden to unitholders incurred by
accrual of income taxes, etc., and distributes the amount that is an integral multiple of the numberof investment units outstanding as profit distributions.
(Note 2) Amounts have been rounded down to the nearest specified unit and percentages have beenrounded to the first decimal place.

5Comparison of Actual Results and Forecasts for the 21st Fiscal Period (Ended Jun. 2012)
Revenue and profits related to rent business surpassed forecast at beginning of period, and DPU settled at a level matching
the forecast at beginning of period after absorbing the burden of fees for early repayment(JPY mn)

Rental Revenues
Other rental revenues
Rent revenue - real estate (1)Operating revenue
Property and other taxes
Other expenses related to rent businessOutsourcing expenses
Utilities expenses
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
OthersDepreciation
Expenses related to rent business (2)Asset management fees
Adm. service/custody fees
Directors' compensation
Trust fees
Other operating expenses
Operating expenses
Operating income
Profits ((1) - (2))
Net operating income (NOI)
Non-operating income
Interest expenses (incl. investment corporation bonds)

Borrowing expenses
Amortization of investment corporation bond issuance costs

Other non-operating expenses
Non-operating expenses
Ordinary income
Income before income taxes
Net income
Unappropriated retained earnings
Distributions per unit (Note 1)
Total number of units outstanding at end of period

21st Fiscal Period Forecasts

21st Fiscal Period ActualJan. 1, 2012 - Jun. 30, 2012

Jan. 1, 2012 - Jun. 30, 2012

Amount11,520653
12,174
12,174
1,070
2,403
493
675
27
316
212
555
122
1,750
5,224
439
76
6
41
160
5,949
6,224
6,949
8,699
44
1,539
125
23
2
1,691
4,577
4,577
4,576
4,602

%
94.6%
5.4%
100.0%
100.0%
8.8%
19.7%
4.1%
5.5%
0.2%
2.6%
1.7%
4.6%
1.0%
14.4%
42.9%
3.6%
0.6%
0.1%
0.3%
1.3%
48.9%
51.1%
57.1%
71.5%
0.4%
12.6%
1.0%
0.2%
0.0%
13.9%
37.6%
37.6%
37.6%
37.8%

Amount11,626719
12,345
12,345
1,031
2,432
496
682
27
347
214
555
107
1,754
5,217
443
74
6
42
167
5,952
6,393
7,127
8,882
62
1,459
373
23
2
1,858
4,597
4,597
4,596
4,622

%
94.2%
5.8%
100.0%
100.0%
8.4%
19.7%
4.0%
5.5%
0.2%
2.8%
1.7%
4.5%
0.9%
14.2%
42.3%
3.6%
0.6%
0.1%
0.3%
1.4%
48.2%
51.8%
57.7%
71.9%
0.5%
11.8%
3.0%
0.2%
0.0%
15.1%
37.2%
37.2%
37.2%
37.4%

6,400 yen

6,430 yen

（715,000）（715,000）

1. Rent revenues

Change・Properties owned at end of 19th period:

Amount
106
65
171
171
-39
28
3
7
0
31
2
0
-15
4
-6
3
-2

%
0.9%
10.1%
1.4%
1.4%
-3.6%
1.2%
0.7%
1.0%
-1.3%
9.9%
1.1%
0.1%
-12.9%
0.2%
-0.1%
0.8%
-2.6%

－
1
7
3
168
178
182
18
-79
247
0
0
167
19
19
19
19

－
3.2%
4.4%
0.1%
2.7%
2.6%
2.1%
41.7%
-5.2%
196.7%
-1.0%
-2.9%
9.9%
0.4%
0.4%
0.4%
0.4%

＋81 mn yen

Increase by new move-ins:＋41 mn yen

Decrease by cancellation:－18 mn yen

Increase/decrease by contract revision:＋53 mn yen(Note) The increase/decrease includes v ariations in 21st period due to f actors changed in 20th period)

・Properties acquired in 20th period＋0 mn yen・Properties acquired in 21st period:＋24 mn yen

2. Other rental revenues
・Properties owned at end of 19th period:

Incidental income:・Properties acquired in 20th period:＋66 mn yen＋55 mn yen＋0 mn yen

3. Expenses related to rent business・Properties owned at end of 19th period:－8 mn yen

Property and other taxes:－39 mn yen

Repairs and maintenance:＋29 mn yen

・Properties acquired in 20th period:＋1 mn yen・Properties acquired in 21st period:＋0 mn yen

4. Non-operating income
・Settlement of management association accounts ＋12 mn yen
5. Interest expenses
・Interest expenses for loans:－78 mn yen

6. Borrowing expenses
・Fees for early repayment:＋220 mn yen(Note 1) The forecasts for the 21st fiscal period were those released at the results announcement forthe 20th fiscal period (ended December 31, 2011). They were calculated on the basis of 58
properties, comprising 57 properties JPR owned as of the end of the 20th fiscal period and one
property to be acquired in the 21st fiscal period.
(Note 2) Amounts have been rounded down to the nearest specified unit; the percentages and thechanges have been rounded to the first decimal place.

30 yen（-）

6

Forecasts for the 22nd Fiscal Period
Acquire excellent properties and repay borrowings using proceeds obtained from add-on offering to reinforce businessfoundations toward stable management in the 23rd fiscal period and after while securing the DPU level under normal operations
without extraordinary events(JPY mn)
Rental Revenues
Other rental revenues
Rent revenue - real estate (1)Operating revenue
Property and other taxes
Other expenses related to rent businessOutsourcing expenses
Utilities expenses
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts

OthersDepreciation
Expenses related to rent business (2)Asset management fees
Adm. service/custody fees
Directors' compensation
Trust fees
Other operating expenses
Operating expenses
Operating income
Profits ((1) - (2))
Net operating income (NOI)
Non-operating income
Interest expenses (incl. investment corporation bonds)

Borrowing expenses
Amortization of investm ent corporation bond is suance costs

New unit issuance costs
Other non-operating expenses
Non-operating expenses
Ordinary income
Income before income taxes
Net income
Unappropriated retained earnings
Distributions per unit (Note 1)
Total number of units outstanding at end of period

21st Fiscal Period

22nd Fiscal Period Forecast

Jan. 1, 2012 - Jun. 30, 2012

Jul. 1, 2012 - Dec. 31, 2012

Amount11,626719
12,345
12,345
1,031
2,432
496
682
27
347
214
555
107
1,754
5,217
443
74
6
42
167
5,952
6,393
7,127
8,882
62
1,459
373
23
－
2
1,858
4,597
4,597
4,596
4,622

%
94.2%
5.8%
100.0%
100.0%
8.4%
19.7%
4.0%
5.5%
0.2%
2.8%
1.7%
4.5%
0.9%
14.2%
42.3%
3.6%
0.6%
0.1%
0.3%
1.4%
48.2%
51.8%
57.7%
71.9%
0.5%
11.8%
3.0%
0.2%
－
0.0%
15.1%
37.2%
37.2%
37.2%
37.4%

Amount12,132727
12,85912,859
1,025
2,652
510
817
30
379
214
565
136
1,830
5,508
461
81
6
42
133
6,234
6,624
7,350
9,181
2
1,394
148
19
110
2
1,675
4,951
4,951
4,950
4,975

%
94.3%
5.7%
100.0%
100.0%
8.0%
20.6%
4.0%
6.4%
0.2%
2.9%
1.7%
4.4%
1.1%
14.2%
42.8%
3.6%
0.6%
0.1%
0.3%
1.0%
48.5%
51.5%
57.2%
71.4%
0.0%
10.8%
1.2%
0.2%
0.9%
0.0%
13.0%
38.5%
38.5%
38.5%
38.7%

1. Rent revenues

ChangeAmount
505
7
513
513
-6
220
13
135
2
31
0
9
28
76
291
17
6
－
0
-33
282
231
222
298
-60
-64
-224
-4
110
0
-183
354
354
353
353

・ Properties owned at end of 20th period:

%
4.3%
1.1%
4.2%
4.2%
-0.6%
9.1%
2.8%
19.8%
9.4%
9.1%
-0.4%
1.7%
27.1%
4.4%
5.6%
4.0%
8.7%
－
0.6%
-20.0%
4.7%
3.6%
3.1%
3.4%
-96.8%-4.4%-60.2%-17.4%
－
12.9%
-9.9%
7.7%
7.7%
7.7%
7.6%

6,430 yen

6,000 yen-430 yen（715,000）（825,000）（110,000）－368 mn yen

Increase by new move-ins:＋176 mn yen

Decrease by cancellation:－369 mn yen

Increase/decrease by contract revision:－176 mn yen(Note) The increase/decrease includes variations in 22nd period due to factors changed in 21st period)

・ Properties acquired in 21st period:＋564 mn yen

・ Properties acquired in 22nd period:＋309 mn yen

2. Other rental revenues
・ Properties owned at end of 20th period:－49 mn yen

Incidental income:＋23 mn yen

Cancellation penalty, etc.:－65 mn yen

・ Properties acquired in 22nd period:＋57 mn yen

3. Expenses related to rent business・ Properties owned at end of 20th period:
Utilities expenses:
Repairs and maintenance:
・ Properties acquired in 22nd period:＋134 mn yen＋90 mn yen＋30 mn yen＋156 mn yen

4. Other operating expenses
・ Undeductible consumption taxes:－57 mn yen

5. Non-operating income
・ Settlement of management association accounts:－54 mn yen

6. Interest expenses
・ Interest expenses for loans:＋6 mn yen

( Decrease in interest expenses due to early repayment:－ 60 mn yen )・ Interest expenses for investment corporation bonds:－71 mn yen

7. Borrowing expenses
・ Fees for early repayment:－219 mn yen

8. New unit issuance costs:＋110 mn yen(Note) Amounts have been rounded down to the nearest specified unit and percentages have beenrounded to the first decimal place.

Assumptions for the 22nd Fiscal Period Forecast Assets owned: Total of 59 properties (58 properties owned as of the end of the 21st
 Total units outstanding: 825,000 units
fiscal period + 1 property acquired in the 22nd fiscal period) Ratio of interest-bearing debts (on a unitholders’ capital Average Monthly Occupancy during Period: 93.9% (based on confirmed contract statusbasis): 48.5% (at end of 22nd fiscal period)
only, reflecting newly concluded contracts and already notified cancellations, etc.)

The forecasts for the 22nd fiscal period were calculated based on the left “Assumptions for the
22nd Fiscal Period Forecast.” Actual operating revenue, ordinary income, net income and cash
distributions per unit may change as a result of the acquisition of new properties or the sale ofowned properties, etc. Furthermore, the forecasts are in no way a guarantee of cash distribution
amounts.

7

[Reference] Forecasts of Rent Revenue – Real Estate and Expenses Related to Rent
Business for the 23rd Fiscal Period

Work to further improve NOI as well as decrease non-operating expenses, despite projected period-on-period decrease inprofits related to rent business due to lack of property and city planning taxes to be included in the deductible acquisition costof new property(JPY mn)

22nd Fiscal Period Forecast

23rd Fiscal Period Forecast

Jul. 1, 2012 - Dec. 31, 2012

Jan. 1, 2013 - Jun. 30, 2013

AmountRental revenues
Other rental revenues
Rent revenue - real estate (1)%Amount%Change from the 22nd
Fiscal Period Forecast
Amount1. Rent revenues• Properties owned at end of 21st period:＋134 mn yen%

Increase by new move-ins:＋223 mn yen

12,132

94.3%

12,342

94.7%

210

1.7%

Decrease by cancellation:－139 mn yen

727

5.7%

687

5.3%

-39

-5.4%

Increase/decrease by contract revision:＋41 mn yen

12,859100.0%

13,030100.0%

170

1.3%• Properties acquired in 22nd period:＋76 mn yen(Note) The increase/decrease includes variations in 23rd period due to factors
changed in 22nd period)

Property and other taxes

1,025

8.0%

1,821

14.0%

796

77.7%

Other expenses related to rent business

2,652

20.6%

2,449

18.8%

-203

-7.7%

Outsourcing expenses

510

4.0%

500

3.8%

-9

-1.9%

Utilities expenses

817

6.4%

763

5.9%

-54

-6.6%

・ Properties owned at end of 21st period－38 mn yen

Casualty insurance

30

0.2%

30

0.2%

0

0.4%

・ Properties acquired in 22nd period:－1 mn yenRepairs and maintenance

379

2.9%

259

2.0%

-119

-31.6%

Property management fees

214

1.7%

221

1.7%

6

3.2%

Management association accounts

565

4.4%

524

4.0%

-41

-7.3%

Others

136

1.1%

151

1.2%

15

11.4%

Depreciation

1,830

14.2%

1,852

14.2%

21

1.2%

Expenses related to rent business (2)

5,508

42.8%

6,124

47.0%

615

11.2%

Profits ((1) - (2))

7,350

57.2%

6,905

53.0%

-444

-6.0%

Net operating income (NOI)

9,181

71.4%

8,758

67.2%

-422

-4.6%

Capital expenditure

1,188

9.2%

926

7.1%

-262

-22.1%Net cash flow (NCF)

7,992

62.2%

7,832

60.1%

-160

-2.0%

2. Other rental revenues

3．Property and other taxes
・ Properties owned at end of 21st period:
Otemachi 1-6 Plan (tentative name) (land w ith land leasehold)・ Properties acquired in 22nd period:＋762 mn yen＋756 mn yen＋33 mn yen

4. Other expenses related to rent business・ Properties owned at end of 21st period:－215 mn yen

Utilities expenses:－58 mn yen

Repairs and maintenance:－119 mn yen

Management association accounts:－41 mn yen

・ Properties acquired in 22nd period:＋12 mn yen(Note) Amounts have been rounded down to the nearest specified unit and percentages have been rounded to the first decimal place.

Assumptions for the 23rd Fiscal Period Forecast Assets owned: Total of 59 properties (58 properties owned as of the end of the
21st fiscal period + 1 property acquired in the 22nd fiscal period) Average Monthly Occupancy during Period: 95.8% (Assumes some newcontracts, etc. in addition to the assumptions for the 22nd fiscal period)

The forecasts of rent revenue – real estate and expenses related to the rent
business for the 23rd fiscal period were calculated based on the left
“Assumptions for the 23rd Fiscal Period Forecast.” Actual rent revenue – realestate, expenses related to the rent business, profits, net operating income(NOI), net cash flow and other figures may change as a result of the acquisitionof new properties or the sale of owned properties, etc.

5. Depreciation
・ Properties owned at end of 21st period:＋6 mn yen・ Properties acquired in 22nd period:＋15 mn yen

8Balance Sheet as of the End of the 21st Fiscal Period
Interest-bearing debt ratio, which rose to 53.2% at end of the 21st fiscal period, is projected to decrease to 48.5% after
the add-on offering(JPY mn)

Current assets
Cash and deposits
Cash and deposits in trust
Other current assets
Noncurrent assets
Property, plant and equipment
Real estate
Buildings and structures
Land
Real estate in trust
Buildings and structures
Land
Intangible assets
Leasehold rights
Other intangible assets
Investments and other assets
Lease and guarantee deposits
OthersDeferred assets
Investment corporation bond issuance costs

Total assets
Current liabilities
Accounts payable - other
Advances received
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds

Noncurrent liabilities
Tenant leasehold and security deposits
Long-term loans payable
Investment corporation bonds
Total liabilities
Unithoders' capital
Surplus
Total unitholders' equity
Total liabilities and unitholders' equity

20th Fiscal Period

21st Fiscal Period

as of Dec. 31, 2011
Amount%27,171
7.5%
13,647
3.8%
13,132
3.6%
391
0.1%
333,357
92.4%
328,08491.0%
151,00941.9%
44,361
12.3%
106,648
29.6%
177,074
49.1%
56,583
15.7%
120,491
33.4%
4,801
1.3%
4,794
1.3%
7
0.0%
472
0.1%
49
0.0%
422
0.1%
169
0.0%
169
0.0%
360,699 100.0%
43,210
12.0%
2,434
0.7%
1,759
0.5%
12,4003.4%
17,616
4.9%
9,000
2.5%
141,84839.3%
17,8595.0%
81,48922.6%
42,50011.8%
185,05851.3%
171,339
47.5%
4,300
1.2%
175,64048.7%
360,699 100.0%

30 2012as of June.
Jun. 30,
Amount%25,075
6.3%
12,7503.2%
11,910
3.0%
414
0.1%
370,795
93.6%
365,36892.3%
150,68138.0%
44,012
11.1%
106,66926.9%
214,686
54.2%
55,80714.1%
158,879
40.1%
4,800
1.2%
4,794
1.2%
5
0.0%
627
0.2%
49
0.0%
577
0.1%
146
0.0%
146
0.0%
396,017 100.0%
54,346
13.7%
3,875
1.0%
2,328
0.6%
20,6005.2%
18,543
4.7%
9,000
2.3%
165,635
41.8%
18,6974.7%
104,438
26.4%
42,50010.7%
219,98155.5%
171,339
43.3%
4,696
1.2%
176,035
44.5%
396,017 100.0%(JPY mn)
End of 20th Period End of 21st Period

ChangeAmount-2,096-897-1,221
23
37,43837,284-327-348
21
37,612-776
38,388
-1
－
-1
155
－
155
-23
-23
35,318
11,136
1,440
568
8,200
927
－
23,787838
22,949－34,923－395
395
35,318

1. Balance of interest-bearing debt

%
-7.7%
-6.6%
-9.3%
6.0%
11.2%
11.4%
-0.2%
-0.8%
0.0%
21.2%
-1.4%
31.9%
-0.0%
－
-16.7%
32.9%
－
36.7%
-13.8%-13.8%
9.8%
25.8%
59.2%
32.3%
66.1%
5.3%
－
16.8%
4.7%
28.2%
－
18.9%
－
9.2%
0.2%
9.8%

Unsecured loans payable
Secured loans payable
Unsecured investment corporation bonds
Total

111,505－
51,500163,005

143,581－
51,500
195,081

Change32,076－－32,076

2. Interest-bearing debt ratio, etc.
48.8%
45.2%

53.2%
49.3%

Change (p)
4.5
4.1

47.6%
76.1%

52.2%
75.3%

4.7
-0.7

End of 20th Period End of 21st Period

Interest-bearing debt ratio (Note 1)
Interest-bearing debt to total assets (Note 2)
Interest-bearing debt to total assets(including unrealized gains or losses) (Note 3)Long-term fixed-rate interest-bearing debt ratio (Note 4)(Note 1) Interest-bearing debt / (Interest-bearing debt + Unitholders' capital)(Note 2) Interest-bearing debt / Total assets at end of period(Note 3) Interest-bearing debt / (Total assets at end of period + Gains or losses from real estate valuation)(Note 4) Long-term fixed-rate interest-bearing debt(*) / Interest-bearing debt(*) Total amount of long-term fixed-rate debt with over 1 year to maturity

3. Cash and deposits Status(JPY mn)
End of 20th Period End of 21st Period

Cash and deposits
Tenant leasehold and security deposits (except tenant leasehold and security deposits） (Note)

26,78013,85924,66011,197

Change-2,119-2,661(Note) Amount equivalent to leasehold deposits released from tenants (4,000 million yen at end of 20th period and 7,500
million yen at end of 21st period) is excluded.

4. Commitment line status(JPY mn)
End of 20th Period End of 21st Period

Credit limit (total)
Outstanding debt
Unused commitment line
Lenders

28,000－28,00028,000－28,000Change－－－Mizuho Corporate Bank, Resona Bank, The Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust andBanking, Sumitomo Mitsui Banking, Aozora Bank and Mizuho Trust & Banking

5. Investment unit status
End of 20th Period End of 21st Period

Total number of units outstanding (units) (Note)
Net assets per unit (yen)715,000
245,651

715,000
246,204

Change－553(Note Total number of units outstanding is projected to be 825,000 units, adding the 101,420 units newly issued via add-on
offering in July 2012 and the 8,580 units (maximum) newly issued through third-party allotment in August 2012 inassociation with the over-allotment option.

(Note ) Amounts have been rounded down to the nearest specified unit and percentages have been rounded to the first decimal place.

9

Management Results of the 21st Fiscal Period(Ended June 2012)

21st

History of Portfolio Growth
JPR has been steadily expanding its assets over ten years since listing, while working to enhance portfolio quality throughfocused investment in office properties in the greater Tokyo area
History of Average Occupancy Rate during Period and Growth of Portfolio Size
（%）

100

95.2

94.0

95

93.8

92.6

93.1

94.9

94.3

96.1

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

Average figure of period-average occupancy rate from the
1st to 21st fiscal periods: 95.7%

9085(JPY bn)

400

Office (Tokyo)

Office (other cities)

Retail properties

Total properties sold

350
300
250
200
125.7

150
100
50
0
-50
Number of properties(buildings)）
Average acquisition
price per property(billion yen)

92.1

94.5

40.1

41.5

38.8
13.2

39.7
13.2

1st Period
Jun. 2002

52.7

139.6
57.5

163.6
77.4

197.6

179.6
91.2

202.6

209.2

99.2

100.1

100.1

45.2

45.2

222.4
100.1
45.2

245.3

251.9

275.1

310.6

344.9

219.8

219.8

223.2

（注） 取得資産規模は、2012年2月
37.5
26.5
26.5

172.9

184.1

43.1

43.1

39.4

31.1

31.1

26.5

26.5

26.5

99.5

95.3

95.3

95.2

95.2

95.2

-18.1

-30.6

-30.6

-35.4

-35.4

-35.4

43.1

39.7

43.9

47.9

47.9

38.2
-0.4

57.2

63.8

77.0

93.9

38.2
-0.4

40.4
-0.4

93.9

33.2

50.0

96.1

-6.2

-9.3

-9.3

-9.3

-14.4

-14.4

-14.4

4th Period
Dec. 2003

5th Period
Jun. 2004

6th Period
Dec. 2004

7th Period
Jun. 2005

8th Period
Dec.2005

259.2

341.5

141.6

114.7

259.2

341.5

135.7

108.2

391.9

331.2

209.5

48.3

2nd Period 3rd Period
Dec. 2002 Jun. 2003

280.6

299.4

380.9

29日時点で保有している物件に第21期取得予定物件1物件
95.2を加えた取得価格の合計金額
95.2
95.2
を単位未満切捨てで記載して
います。

-35.4

-35.4

9th Period 10th Period 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period
Jun. 2006 Dec. 2006 Jun. 2007 Dec. 2007 Jun. 2008 Dec. 2008 Jun. 2009 Dec. 2009 Jun. 2010 Dec. 2010 Jun. 2011 Dec. 2011 Jun. 2012

-35.4

Aug. 17,
2012

25

27

30

32

38

42

42

42

44

46

48

49

50

52

51

53

55

56

56

57

58

59

3.6

3.5

4.1

4.3

4.3

4.2

4.7

4.8

4.7

4.8

5.1

5.1

5.5

5.3

5.8

5.8

6.0

6.1

6.1

6.0

6.5

6.6

(Note 1) Average occupancy rates have been rounded to the first decimal place.
(Note 2) Portfolio size represents the sum total amount of acquisition price of the properties included in the JPR portfolio as of respective dates, rounded down to the nearest hundred million yen. In addition, portfolio size after having acquired a property to be acquired represents the sum total amount of acquisition prices of the properties
JPR owns as of August 17, 2012. Furthermore, the acquisition price is the deal price (rounded down to the nearest hundred million yen) described in the transaction contracts with the sellers for respective properties, and does not include expenses related to acquisitions and consumption taxes. The same is true to below.
(Note 3) The accumulated amount of total properties sold represents the accumulated amount of acquisition prices at which JPR had acquired the respective properties that were sold by the respective dates.)(Note 4) Average acquisition price per property is rounded down to the nearest hundred million yen.

Portfolio Management Guidelines

Investment Target by
Area

Investment Target by
Asset ClassTokyo: 80~90%
Other cities: 20~10%

As of End of 1st Period (June 2002)

Other cities
42.1%

Office: 70~90%
Retail: 30~10%(Note) Figures in the graphs to the right represent investment ratio by area and by asset class, or the ratio of the totalacquisition prices of properties in respective categories to the total acquisition prices of the entire portfolio, and isrounded to the first decimal place.

Office(Tokyo CBDs)
Office29.2%(other cities)
42.1%
Office(Greater Tokyo)
14.3%
Retail (Tokyo)
14.4%

As of August 17, 2012
Other cities
17.7%

Investment ratio of office properties
in the greater Tokyo area rising as aresult of focused investment
Office properties in the greater
Tokyo area: +22.6%
GreaterTokyo area
57.9%

(of which, office: 43.5%)

Retail(other cities)
8.1%
Office(other cities)
9.6%

Retail (Tokyo)
16.2%

Office(Tokyo CBDs)
46.4%

Office (Greater
Tokyo)
19.7%

GreaterTokyo area
82.3%

(Of which, office: 66.1%)

11

Property Acquisition in the 21st Period
Improved portfolio quality and stability of earnings through acquisition of a property in a prime location for domestic offices
Exterior perspective

Otemachi 1-6 Plan (tentative name)(ownership of land with land leasehold)Characteristics and Reasons for Acquisition

1. Property Overview
Location
Site area /Type of ownership

6-6, etc., Otemachi 1-chome, Chiyoda-ku, TokyoSuperiority in a prime location fordomestic office buildingsEnsure long-term stable earnings basedon a contract to set surface rights for 70
years



There is no depreciation burden, so theproperty contributes highly to dividends

The property’s yield (after depreciation)is 3.6% (Note), surpassing the average
yield after depreciation of JPR’s officebuildings in Tokyo CBDs.



Preferential negotiating rights are
granted for cases of transferring, etc.
currently planned buildings, etc.

2

11,034.78m / Beneficiary interest in real estate (landwith surface rights establishment agreement)

2. Outline of Leasehold
Form of agreement/
agreement period

Contract to set surface rights Surface rights / 70 years

3. Transaction Summary
SellerTokyo Prime Stage Y.K.

Type of asset(SPC established jointly by Tokyo Tatemono Co., Ltd
and Taisei Corporation)
Beneficiary interest in real estate

Acquisition price

36,000 million yen

Appraisal value

36,800 million yen (as of June 30, 2012)

Acquisition date

March 13, 2012

4. Yield
Yield after
depreciation (Note)

3.6%

5. Overview of Building under Project
Development project for high-rise complex building with 38 floors above ground and2
total floor space of approx. 198,000m is currently underway, with construction
completion scheduled for end of April 2014. Occupancy by leading Japanesefinancial institution in office portion and world-class hotel on higher floors areplanned.

(Note) Yield after depreciation is calculated by using annual earnings
and expenses estimated exclusive of extraordinary factors of
the fiscal year the property was acquired in (they are not thefigures expected for the current fiscal period under review). It
is calculated by dividing the rental business income (whereproperty and other taxes, etc. are subtracted from annual rent)by the acquisition price. The figure is rounded to the firstdecimal point.

Location map

Concerning the rent review article
Rent will be reviewed when there is an
A: increase or reduction of property and other taxes, or
B: change in the consumer price index
in the base year of property tax.
(However, rent will also be adjusted if there is change inproperty and other taxes other than in the base year.)As such, the provision for rent review will not be impacted bychanges of rental revenue, etc. of currently planned buildings.

Rent

NOI
(Rent - Property andother taxes, etc.)

Property and othertaxes(Property tax, etc.: 1,512
million yen/year) (Note)(2,817 million yen/year) (Note)(Note) Figures for rent and property tax, etc. are the annual amounts after the fiscal 2012 review based on the contract to set surface rights.

Net rental income (NOI),
which is rent subtracted byproperty and other taxes, isreviewed in conjunction withthe consumer price index(Statistic Bureau, Ministry ofInternal Affairs andCommunications)
When there are changes inproperty and other taxes,
the same amount will be
reviewed in rent

Image of Underground Plaza
Tokyo Metro
Chiyoda Line

Tokyo Metro
Hanzomon Line

Tokyo Metro
Tozai Line

Tokyo Metro
Marunouchi Line

Otemachi
1st Square(tentative name)

Otemachi 1-6 Plan
(Land with Leasehold
Interest)*

Otemachi Sta.

Uchibori-doriShin-Marunouchi
Image of Otemachi Forest
Bldg.
(tentative name)Marunouchi Nihonbashi
Toei Mita Line
Gate
North Gate
Tokyo Metro
JR Tokyo Sta.
Tokyo Sta.
Marunouchi Bldg.

Marunouchi
Central Gate

12

Property Acquisition in the 22nd Period
Leveraging sponsors’ pipelines and selectively investing in excellent large office buildings in Fukuoka where steady market
recovery is expected compared to other regional cities
1. Property Overview
1-1, Yakuin 1-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
January 2009

Location
Completion
Total floor space

22,286.35m 2Type of ownership

Ownership

Exterior photograghCharacteristics and Reasons for Acquisition

Yakuin Business Garden

Location with Excellent Access

Accomplished companies such as Kyushu Electric Power Company (head office) and NTT
DoCoMo (Kyushu branch) place their Kyushu hubs in the Yakuin area of Fukuoka where
the property is located and transportation access throughout the area is excellent with
Fukuoka’s main train line, the Nishitetsu Tenjin-Omuta Line, passing through Yakuin Stationin addition to the Nanakuma subway line and several bus routes.

2. Transaction Summary
SellerAsset type

Yakuin Holdings TMK(an SPC invested in by Tokyo Tatemono)
Real estate

Acquisition price

10,996 million yen

Appraisal value

11,000 million yen (as of May 1, 2012)

Acquisition dateAugust 8, 2012

Top-class Specifications in the Area

The property is relatively new, completed in January 2009. With floor space of a standard
floor of approx. 400 tsubos, the largest scale in the area, and built in a rectangular shapewith column-free space and surrounded on three sides by glass wall curtains, the property
provides a very open office environment. In terms of facilities, the property employs thelatest technology in power supply, air conditioning, communications, security, etc. and isfully equipped with high specifications. The building’s design employs a seismic damping
structure and is therefore highly resistant to earthquakes (earthquake PML: 1.45%).

3. Yield (Current Base)NOI yield (Note)
Yield after
depreciation (Note)

5.8%
4.0%

(Note) Yields are calculated based on annual earnings and expenses estimated thatassumes the current rent level, occupancy rate, etc. NOI yield is calculated by
dividing expected NOI by the acquisition price and yield after depreciation is
calculated by dividing the rental income (expected NOI subtracted by depreciation)by the acquisition price. Figures are rounded to the first decimal point.
Furthermore, the NOI yield of the property obtained by dividing the net operating
income, which was indicated in the appraisal report and used as a base forcalculating the capitalized value through direct capitalization method by theacquisition price, was 5.5%.

Expectation for Internal Growth Capacity



The Fukuoka business district was impacted by large supply in 2009, the year the property
was completed, resulting in a downturn of rents. Because many of the tenants moved inwhen rents were in a lower range, an increase in profitability can be expected with themarket recovery.

Changes in Supply and New Demand Trends and the Vacancy Rate inFukuoka’s Office Market

Tenjin Sta.

Newly supplied space (left axis)
Average vacancy rate (right axis)

Kuko Subway Line

Fukuoka City
OfficeTenjin 121 Bldg.
Daimaru
Tenjin Sta.
Tenjin-Minami Sta.
Iwataya
Mitsukoshi
Kokutai Street
Nishitetsu Tenjin
Omuta Line

15.4

30

(%)

14.7

16
13.2

25

12.6

(July 2012 results)

14

11.0

20
15

Watanabe-dori

The Yakuin
Business Garden(thousand tsubo）

New demand space (left axis)

8.4

12
10

8.1

10

← July 2012 results

8

Watanabe-dori Sta.

5

New Otani
Hotel

0

4

-5

2

Kyushu ElectricPower Co.

-10
Yakuin Sta.
Nanakuma Subway Line
Yakuin-Odori Sta.
Approx. 2-minute walk from Yakuin Station on the Nishitetsu Tenjin-Omuta Line andFukuoka City Subway Nanakuma Line

Inside of an officeVibration control damper

6

0
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

(Note) Data through 2011 was prepared by Tokyo Realty Investment Management, Inc. based on the Office Report(Fukuoka CBD) published by Miki Shoji Co., Ltd. Data for 2012 and after were prepared by Tokyo Realty
Investment Management, Inc. based on its own survey.

13

Changes in Occupancy Rates and Contract Changes
Despite tenant relocations becoming more active, the impact of cancellations at some properties resulted in occupancy rates
being as assumed at the beginning of the period
Changes in Period-End Occupancy Rates of Properties by Asset Class and by Location
99.8%

100%

99.8%

(±0.0%p)

98%
95.6%

96%

94.1%

All properties(－1.5%p)

92.4%
Office (Tokyo CBDs)

92%
90%

91.2%
90.6%
90.2%

92.0%

Office (Greater Tokyo)
Office (Other cities)(－3.0%p)(－1.8%p)(－1.8%p)

Retail properties

88%(75.6%)

0%86%

End of11th
PeriodEnd of12th
PeriodEnd of13th
PeriodEnd of14th
PeriodEnd of15th
PeriodEnd of16th
PeriodEnd of17th
PeriodEnd of18th
PeriodEnd of19th
PeriodEnd of20th
Period By location, decreases were seen in office buildings in Tokyo CBDs of -3.0%
points and both Greater Tokyo and other cities of -1.8% points compared to the20th fiscal period(Main Properties with Fluctuations in Occupancy Rates)

94.2%

94%

 Although steady lease-up was conducted centering on office buildings inTokyo, due to the impact of cancellations at some properties, the occupancy
rate for the entire portfolio at the end of the period dropped 1.5% points
compared to the 20th fiscal period

End of21stPeriod20th Period

21st Period

Dec. 2011

Jun. 2012

ChangeJPR Harajuku Building

88.5%

98.7%

10.2%pYume-ooka Office Tower

87.9%

91.1%

3.2%p

Shinjuku Center Building

87.5%

90.0%

2.5%p

Minami Azabu Building

100.0%

0.0%-100.0%p

JPR Crest Takebashi Building

94.9%

58.5%

-36.4%pOlinas Tower

98.6%

91.3%

-7.3%p(Note 1) Indicated occupancy rates are as of the end of June 30, 2012, calculated on the basis of the lease conditions
as of the same date for properties JPR owned as of the same date.
(Note 2) Figures have been rounded to the first decimal place.

Changes in Contract Changes
 Given notices of cancellations for about 6,000m2 in three office buildings inTokyo CBDs, cancelled space significantly exceeded newly leased space

30,000㎡

Newly leased space

Cancelled space

25,000㎡(Breakdown by Asset Class and by Location for the 21st Fiscal Period)
20,000㎡

Newly leased
space

15,000㎡

25,98910,000㎡

18,18813,5115,000㎡

9,691

7,850
4,042

0㎡

16th Period

7,897

6,853

17th Period

18th Period

19th Period

11,104

13,940
8,723

20th Period

Cancelled
space

Newly leased space −cancelled space

Entire portfolio

6,617㎡

13,940㎡-7,323㎡

Office in Tokyo CBDs

1,901㎡

6,408㎡-4,508㎡

Office in Greater Tokyo

3,290㎡

5,222㎡-1,932㎡

Office in other cities

1,340㎡

2,309㎡-969㎡

Retail properties

86㎡

0㎡

86㎡

6,617
21st Period

14Changes in Rent Revenue and Unit Rent
Rent revenue on same-store basis and average unit rent continued on downward trends, impacted by reductions incontract rents and other factors
Changes in Rent Revenue (from Properties Owned as of the End of the 16th Period)(JPY mn)

14,000(+5.7%)
12,00010,00010,684617(+3.1%)
11,014754

11,626

10,825(+1.6%)
10,996

967

1,243

1,433

2,339

6,847

6,672

6,662

6,414

(-6.4%)(-2.6%)(-0.1%)(-3.7%)(+2.6%)(+0.9%)

10,731

Entire portfolio
Properties
acquired or soldsince the 16th
fiscal period

8,000
6,000

7,125

7,315
(+2.7%)

Office properties
owned as of theend of the 16th
fiscal period

4,000
2,000
0

2,941

2,944
(0.1%)

2,916(-1.0%)

2,909(-0.2%)

2,900(-0.3%)

2,872(-1.0%)

第16期
16th
Period

第17期
17th
Period

第18期
18th
Period

第19期
19th
Period

第20期
20thPeriod

第21期
21stPeriodRetail properties
owned as of theend of the 16th
fiscal period

 Rent revenue of entire portfolio increased significantly as a result of new
property acquisition
 Office buildings owned as of the end of the 16th fiscal period decreased
period-on-period as a result of declines in occupancy rate Concerning retail properties, since the 16th fiscal period, none have beenacquired or sold and rent revenue has generally been stable, serving tosupport entire portfolio(Note 1) Values for the entire portfolio are the sum of rents, common charges, parking rates and otherrevenues (excluding such variable revenues as incidental income) for all properties owned in
respective periods (including properties sold during the respective periods). Values for the officeproperties owned as of the end of the 16th fiscal period and Retail properties owned as of the endof the 16th fiscal period are the sum of rents, common charges, parking rates and other revenues(excluding such variable revenues as incidental income) for properties owned as of the end of the
16th fiscal period but excluding those sold by the end of the 21st fiscal period. Furthermore, BYGS
Shinjuku Building, of which JPR additionally acquired the remainder of common areas at the endof the 18th fiscal period, has been excluded from the Office properties owned as of the end of the
16th fiscal period and included in the Properties acquired or sold since the 16th fiscal period
category.
(Note 2) Values have been rounded down to million yen, and the rates of period-on-period change havebeen rounded to the first decimal place.

Changes in Average Rent of Office Buildings (for Properties Owned as of the End of the 16th Period)
Average unit rent (includingcommon charges; thousand
yen/tsubo)

20.0

18.8

(-0.3%)
18.7(-1.5%)
18.5(-3.1%)
17.9

18.0
16.0
14.0

15.2

15.0

(+0.9%)
15.4

14.9(-0.8%)(-1.2%)
15.2

14.6(-1.0%)
15.0(-2.2%)
17.5(-0.9%)
14.9(-1.9%)

14.4(-1.7%)

14.2(-1.4%)

9.9

12.0

 Average unit rent of entire portfolio continues to be on downward trend,
albeit modest(-2.8%)
17.0(-2.7%)
14.5

13.8(-2.9%)

10.0
10.0
8.0
6.0
0.0

第16期
16th
Period9.9(-1.8%)

9.8

9.9(-0.4%)(+0.9%)(0.0%)

9.7(-1.6%)

第17期
17th
Period

第18期
18th
Period

第19期
19th
Period

第20期
20thPeriod

第21期
21stPeriodEntire officebuildings owned at
end of 16th period Degree of decrease for office buildings owned as of the end of the 16th
fiscal period grew to −2.8% period-on-period for the 21st fiscal period
 Average unit rent of retail properties remained relatively stable

Entire portfolio
Entire properties
owned at end of
16th period
Entire retailproperties owned at
end of 16th period(Note 1) Values for Entire portfolio are the average unit rent (monthly rent revenue per tsubo of occupied
spaces including common charges at end of each fiscal period) for all properties owned in
respective periods (including properties sold during the respective periods). Values for Properties
Owned as of the End of the 16th Period, Office properties owned as of the end of the 16th fiscal
period and Retail properties owned as of the end of the 16th fiscal period are the average unit rent
(monthly rent revenue per tsubo of occupied spaces including common charges at end of eachfiscal period) for properties owned as of the end of the 16th fiscal period but excluding those soldby the end of the 21st fiscal period. Furthermore, BYGS Shinjuku Building, of which JPR
additionally acquired the remainder of common areas at the end of the 18th fiscal period, hasbeen excluded from the Properties Owned as of the End of the 16th Period and the Officeproperties owned as of the end of the 16th fiscal period categories.
(Note 2) The period-on-period figures have been rounded to the first decimal place.

15

Financial Strategy
Continued conservative financial operations by promoting long-term, fixed interest rates and diversifying
repayment dates, so as to maintain high credit ratings
Changes in Unitholders’ Capital and Ratio of Interest-Bearing Debts (LTV)(JPY bn)

LTV as ratio of gains or losses from valuation to total assets at end of period

Unitholders’ capital

250

Ratio of Interest-Bearing Debts

54.9
46.4

200
39.4 40.6 48.0

42.0

48.7

44.1

45.8

48.9 49.0 48.5 48.9 48.7 48.8

48.7
44.1 45.2
37.2

37.1 44.4

150

44.6 45.5

34.5

34.4

48.5
52.2

38.9

39.3 38.5 38.9 39.7

35.3 36.5

60

53.2

51.1

Short term borrowings
Corporate bonds maturing
in more than one year

50

23.2%

46.9 47.5 47.5 47.6

7.7%
9.6%

Current portion of
long-term borrowings

40

37.2
30

59.6%

29.4 29.9

100

20

Long-term interest
bearing debts

Long-term borrowings maturing
In more than one year

82.7%

50

10

56
0

(as of August 17, 2012)(%)

LTV based on unitholder’s capital

56

56

89

89

89

115 115 115 115 156 156 156 156 156 156 171 171 171 171 171 192

1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period
Jun. 2002

Dec. 2002

Jun. 2003

Dec. 2003

Jun. 2004

Dec. 2004

Jun. 2005

Dec. 2005

Jun. 2006

Dec. 2006

Jun. 2007 Dec. 2007

Jun. 2008

Dec. 2008

Jun. 2009

Dec. 2009

Jun. 2010

Dec. 2010

Jun. 2011

Dec. 2011

Jun. 2012

End ofAug. 2012
Forecast(Note 1) LTV based on unitholders’ capital (%) = Interest-bearing debts / (interest-bearing debts + Unitholders’ capital); LTV as ratio of gains or losses from valuation to total assets at end of
period = Interest-bearing debt / (Total assets at end of period + Gains or losses from real estate valuation)(Note 2) Unitholders’ capital has been rounded down to the nearest specified unit.
(Note 3) LTV based on unitholders’ capital and LTV as ratio of gains or losses from valuation to total assets at end of period have been rounded to the first decimal place.
(Note 4) Forecast at end of August 2012 assumes that JPR will issue 8,580 new investment units through third-party allotment and repay JPY 2.5 billion in interest-bearing debts.

Diversification of Repayment Dates of Interest-Bearing Debts

76.1%

82.7%

Average maturity of long-term interest-bearing
debts
Average interest rate of long-term interestbearing debts

3.84 years

3.72 years

1.76%

1.54%

Average maturity of interest-bearing debts

3.05 years

3.19 years

Ratio of long-term, fixed-ratio borrowings(as of August 17, 2012)35

Short-term borrowings

30
（7.5）

25

Long-term borrowings

Credit Ratings Assigned to JPR

Corporate bonds

Of the 12.1 billion yen, JPR intends to repay 2.5 billion yen
by using funds from issuing new investment units throughthird-party allotment and other sources, and refinance 5
billion yen for the same amount in long-term borrowings(as of August 17, 2012)

Rating Agency

12.1

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

20
6.1

15
10

18.3
2.0
5.4

0

Aug. 17, 2012

(Note) Long-term interest-bearing debts: interest-bearing debts with repayment dates coming in
more than one year

(JPY bn)

5

0

20th Period
Dec. 2011

12.0

12.2

Standard & Poor’s Ratings Japan K.K. (S&P)(Note1)

0.1
4.1
11.0

13.0

13.5

Moody’s Japan K.K.(Moody’s)(Note 2)

19.5

13.1

5.0

7.0

7.0

3.3

0.1
2.0

7.1

4.5

22nd
23rd
24th
25th
26th
27th
28th
29th
30th
31st
32nd
33rd
34th
35th
36th
PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodDec. 2012 Jun. 2013 Dec. 2013 Jun. 2014 Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016 Dec. 2016 Jun. 2017 Dec. 2017 Jun. 2018 Dec. 2018 Jun. 2019 Dec. 2019

(Note) Figures have been rounded down to the nearest 100 million yen.

4.5
-

50th
PeriodDec. 2026

Corporate
Credit Rating

OutlookAA–

StableLong-term: A
Short-term: A-1

StableA3

Negative(Note 1) JPR had been placed on credit watch with negative implications since March 5,2012, but the credit watch was removed on August 1, 2012 and the ratings
were kept unchanged at A/A-1, with the Outlook being stable.
(Note 2) The rating was downgraded from A2 to A3 on May 9, 2012.

16

Equity Finance Overview
JPR conducted its fifth additional public offering through a global offering, the first such arrangement for JPR[Objectives][Background]
Concerns about real estate transaction prices rising in anticipation forrecovery in the office building leasing market

 Prepare for implementing growth strategy by quickly regaining JPR’s extra capacity toacquire properties through debt financing

Apparent moves toward equity financing during the current fiscal year
being activated led by operating companies

 Selective investment in properties with relatively high yields, akin to the stabilized profitability
and reinforced foundations for growth realized by the acquisition of Otemachi 1-6 Plan
(tentative name) (land with land leasehold)Tendency for “risk off” (avoiding risks) in the face of the European
sovereign debt crisis, uncertain outlook of the world economy and otherfactors

 Secure DPU at 6,000 yen, the target level under normal operations, for the 23rd fiscal period
and after

JPR’s unit price remains solid, staying above net asset value (NAV) perunit Firmly maintain the position as one of the largest J-REITs managing a comprehensive-type
portfolio, both in terms of market capitalization and asset size

Investigation of an offering size that can absorb investor demand amid
limited offering opportunities

 Provide foreign investors with investment opportunity in the primary market through global
offering, the first such arrangement for JPR[Equity Finance Overview]
Offering type

Global offering(offering centered on Europe and Asia [excluding the U.S. and Canada])
715,000 units

Total number of units issued /dilution ratio

110,000 units

Dilution ratio: 15.4% of units issued and outstanding

Domestic primary offeringand global offering

101,420 units(57,420 units via domestic offering and 44,000 units via
global offering)(Third-party allotment as a result of exercising thegreenshoe option: 8,580 units maximum)

Secondary offering(over-allotment)

8,580 units

Total amount of offering

JPY 21,407 million

Total procured amount JPY 20,704 million (maximum)

JPY 19,737 million

Net proceeds JPY 19,089 million

JPY 1,669 million

Net proceeds through third-party allotment JPY 1,614
million (maximum)

Secondary offering(over-allotment)
PortionIssue price (offer price)
Paid-in amount (purchase price)

60% domestic(42% public and 18% institutional): 40% global
JPY 194,610 per unit

(Note) The figure assumes that JPR will issue 8,580 new investment
units through third-party allotment and repay JPY 2.5 billion ininterest-bearing debts.

Acquisition price(single property)
NOI yield(current figure)Market capitalization(as of Aug. 10, 2012)
Asset size
(as of Aug. 17, 2012)

JPY 10,996 million
5.8%

JPY 170.4 billion
JPY 391.9 billion[Public Offering Results]

Number of investment units
issued and outstanding

Domestic primary offeringand global offering

LTV(based on unitholders’ capital)

End of 21st After public
fiscal period
offering
48.5%
53.2%
(Note)First additional public offering
Additional listing: July 2003
Unit issued: 140,400(JPY bn) Total purchase price: JPY 32.1
billion250

JPY 188,222 per unit
Resolution day of issuance: July 9, 2012
Pricing date: July 23, 2012

Payment date / additional listing
date

Payment date: July 30, 2012
Additional listing date: July 31, 2012

Use of proceeds

JPY 7.0 billion to fund acquisition of specified asset, JPY 13.7 billion to repay shortterm borrowings (planned)

192

200
156 156 156 156 156 156

171 171 171 171 171

150
115 115 115 115

100
56(closing price of the pricing date: JPY 199,600)

Resolution day of issuance/pricing date

Second additional public
Fourth additional public offeringoffering
Third additional public offering
Fifth additional public offering
Additional listing: February
Additional listing: February
Additional listing: February 2007
Additional listing: July 2012
2010
2005
Unit issued: 95,000
Unit issued: 110,000
Unit issued: 90,000
Unit issued: 100,000
Total purchase price: JPY 41.2
Total purchase price: JPY 20.7
Total purchase price: JPY 14.6
Total purchase price: JPY 26.3
billionbillionbillionbillion56

50
39.4 40.6

0

89

89

89

37.1

46.4 51.1 42.0 44.1 45.8 48.7

56
54.9

37.2 38.9

44.1 45.2 48.9 49.0 48.5 48.9 48.7 48.8

53.2 48.5

1st
2nd
3rd
4th
5th
6th
7th
8th
9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st End of
Period Period Period Period Period Period Period Period Period Period PeriodPeriod Period Period Period Period Period Period Period Period Period Aug.
Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. 20122002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 Forecast

Unitholders’ capital

LTV based on unitholder’s capital

17

Breakdown of Interest-Bearing Liabilities
JPR invited 5 banks as new lenders by originating its first syndicated loan to expand lenders to 28 financial institutions
Borrowings(JPY mn)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,000

5,000

Mizuho Corporate Bank, Ltd.

2,000

4,600

Short-term borrowings

LenderMitsubishi UFJ Trust and Banking Corporation

2,000

4,000

Resona Bank, Limited

2,000

2,000

Aozora Bank, Ltd.

2,000

2,000

Sumitomo Mitsui Bank Corporation

1,400

2,000

Mizuho Trust & Banking Co., Ltd.

1,000

1,000

Total short-term borrowings

12,40020,600Mizuho Corporate Bank, Ltd.

13,50020,400

The Bank of Tokyo-Mitsubishi UFJ, Ltd

12,585

12,502

Mitsubishi UFJ Trust and Banking Corporation

7,000

7,000

Zenkyoren (The National Mutual Insurance Federation of Agricultural

7,000

7,000

Sumitomo Mitsui Bank Corporation

5,750

12,100

The Bank of Fukuoka, Ltd.

5,000

5,000

American Family Life Assuarance Company of Columbus (Note 2)

5,000

1,500

Development Bank of Japan Inc.

4,370

4,245

Sompo Japan Insurance Inc.

4,000

4,000

Long-term bborrowings

Cooperatives)

Sumitomo Life Insurance Company
Meiji Yasuda Life Insurance Company

4,000
4,000

Security

Unsecured
Unguaranteed
Non-subordinated

4,000
3,934

Mizuho Trust & Banking Co., Ltd.

3,000

The Chugoku Bank, Ltd.

3,000

Unsecured
7,000 Unguaranteed
Non-subordinated
3,000

Taiyo Life Insurance Company

3,000

3,000

ORIX Trust and Banking Corporation

3,000

3,000

LenderLong-term borrowings

Balance as ofJune 30, 2012

Balance as ofDec. 31, 2011

Balance as ofJune 30, 2012

The Tokyo Tomin Bank, Limited.(Note 3)

-

1,000

The Bank of Yokohama, Ltd.(Note 3)

-

1,000

The Minato Bank, Ltd.(Note 3)-

800

The Yamaguchi Bank, Ltd.(Note 3)-

500

The Chiba Kogyo Bank, Ltd.(Note 3)-

100

99,105

122,981111,505

143,581

Total long-term borrowings
Total borrowings

Unsecured
Unguaranteed
Non-subordinatedCorporate Bonds(JPY mn)
Name

Balance as ofDec. 31, 2011

Balance as ofJune 30, 2012

Third Series of Corporate Bonds

5,000

5,000

Sixth Series of Corporate Bonds

5,000

5,000

Seventh Series of Corporate Bonds

4,500

4,500

Eighth Series of Corporate Bonds (Note)

9,000

9,000

Ninth Series of Corporate Bonds

6,000

6,000

Eleventh Series of Corporate Bonds

6,000

6,000

Twelfth Series of Corporate Bonds

7,000

7,000

Thirteenth Series of Corporate Bonds

7,000

7,000

Fourteenth Series of Corporate Bonds

2,000

2,000

Balance of corporate bonds

51,50051,500Total interest-bearing liabilities

163,005

195,081

Security

Unsecured
Unguaranteed
Non-subordinated(Note) Redemption of Japan Prime Realty Investment Corporation’s Eighth Series of Unsecured Bonds of 9,000 million yen was conducted on
July 23, 2012.

Commitment Line Contract
Lenders (already established)(JPY mn)
Limit

Maturity date

The Shinkumi Federation Bank

3,000

3,000

The Nishi-Nippon City Bank, Ltd.

3,000

3,000

Shinsei Bank, Limited

2,000

7,000

The Hachijuni Bank, Ltd.

2,000

2,000

Daido Life Insurance Company

2,000

2,000

Sumitomo Mitsui Bank Corporation

4,000

Aozora Bank, Ltd.

1,900

1,900

Aozora Bank, Ltd.

4,000

The Iyo Bank, Ltd.

1,000

1,000

Mizuho Trust & Banking Co., Ltd.

-

2,000

Resona Bank, Limited

Security(Note 1) Among the short-term borrowings of 20,600 million yen, JPR repaid 11,000 million yen on August 1, 2012 prior to the repayment dateusing proceeds gained through the additional offering.
(Note 2) Among the long-term borrowings of 5,000 million yen, JPR repaid 3,500 million yen on June 27, 2012 prior to the repayment date.
(Note 3) These are borrowings made through originating a syndicated loan.

Corporate bonds

Balance as ofDec. 31, 2011

Mizuho Corporate Bank, Ltd.

4,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,000

Resona Bank, Limited

4,000

Mitsubishi UFJ Trust and Banking Corporation

Total commitment line

4,000 November 30, 2012

Security

Unsecured
Unguaranteed

4,000
28,00018

History of JPR’s Unit Price and Trade Volume (Jan. 4, 2012~Aug. 10, 2012)(Unit Price) (JPY)(Trade Volume) （ Unit ）260,000

80,000Trade Volume (units)

Price (JPY )TSE REIT Index

TOPIX

TSEROFF

70,000240,000
60,000220,000
50,000200,000

40,00030,000180,000
20,000160,000
10,000140,000

0
Jan.
2012

Feb.
2012

Mar.
2012

Apr.
2012

May.
2012

Jun.
2012

Jul.
2012

Aug.
2012

*The TSE REIT Index and other figures have been indexed with January 4, 2012 as the base date, and the chart shows relative performances.

19

Future Management Strategy

22nd～Future Management Policies
Investing with an emphasis on Tokyo offices in addition to implementing various measures for improving NOI with the aimof stabilizing steady DPU in the 23rd Fiscal Period forward[Market Analysis]
 The real estate transaction market is heading for recovery aheadof office rental market and conditions for greater market activity is
emerging

External Growth
Strategy Information on excellent properties in the secondary market still inscarce state Buyers find it difficult to set high price targets as the Japanese
economy remains unclear and the real estate market is notshowing clear improvements
 Investment corporations may boost property acquisition withrecovery of investment unit prices

Internal Growth
Strategy[Market Analysis][JPR’s Strategy] Although the vacancy rate of Tokyo offices increased due to theimpact of new supply concentrated in the first half of 2012, thevacancy rate is expected to improve in the second half due to adecrease in supply and steady demand Newly set up the Leasing Supervising Group at the Asset Manager (TRIM)
to oversee leasing and reinforce leasing activities

 The supply-demand balance is improving but a turnaround(increase) of rents is expected to require some time due touncertain economic prospects
 Some excellent offices and retail properties in good locations havemostly bottomed out

Financial and IR
Strategies[JPR’s Strategy]
 Somewhat overheated transaction can be seen here and there as there is alack of excellent properties in the real estate transaction market, but judging
from a medium- to long-term perspective the favorable period for property
acquisitions will continue for some time Leverage sponsors’ pipelines and consider acquisitions mainly of officeproperties in the greater Tokyo area and also acquisitions from thesecondary market
 Continue to strive to enhance portfolio quality while continuing to consider
property replacements intended for NAV improvement
 Continue to make investment decisions by extensively setting up antennas
in the market to collect information through such sources as sponsors,
accurately grasping market trends and carefully researching investment
value including determining future potential

 In the recovery phase of the office rental market, steadily catch up to theneeds for relocation and increasing floor space to lead to the recovery of
the occupancy rate through careful operative response Improve competitiveness of properties with focused investment in renewal
work, responding to tenant needs, etc.
 Strengthen cost control by proactively introducing energy-saving facilities
and pursuing rationalization of management structure[Market Analysis][JPR’s Strategy] Long-term interest rates will be falling as risk aversion tendencies
increase due to the impact of concerns over global economic
slowdown such as the European debt crisis

 Engage in further compression of borrowing costs in refinancing andfinancing for property acquisitions

 Environment of debt financing from financial institutions continues
to be favorable

 Continue to consider early repayments with regard to some relatively highcost borrowings
 Consider acquiring borrowings with longer terms, keeping in mind thediversification of maturity dates
 Utilize syndicate loans, etc. and work to increase new lenders as flexibilityof loan transactions have improved with amendment of loan agreement

21Office Transaction Market Conditions
With environment of debt financing from financial institutions favorable, property acquisition by J-REITs fromsponsors driving real estate transactions
Lending Attitude of Japanese Financial Institutions and Amount of New Lending

Changes in Cap Rates of Offices

Financing from Japanese financial institutions is proactive, and the amount of
new lending is also on gradual recovery trend(JPY trillion)

Amount of new lending to real estate industry (left axis)
Lending attitude (large enterprises in real estate industry) (right axis)

12.0

40
30

10.0

While office building cap rates in Tokyo remained flat, some areas showed aslight decrease(%)

Otemachi/Marunouchi

6.5

Nihonbashi

Nishi-Shinjuku

Shibuya

Osaka

6.0

20
10

6.0

0

4.0

(Note)

2002

2003

2004

2005

2006

2007

2008

2009

2010

500

J-REITs, etc.

SPCs

J-REITs, etc.

SPCs

4.2

Oct. 2011

Apr. 2012

3.5

-40

0.0
3.0

2012

Other

Apr. 2005

Oct. 2005

Apr. 2006

Oct. 2006

Apr. 2007

Oct. 2007

Apr. 2008

Oct. 2008

Apr. 2009

Oct. 2009

Apr. 2010

Oct. 2010

Apr. 2011(Note) Prepared by Tokyo Realty Investment Management, Inc. based on the Cap Rate of Average-Sized Class A Office Buildingin The Japanese Real Estate Investor Survey published by Japan Real Estate Institute

Changes in Acquisition Results of Office Buildings in Tokyo by J-REITs
Acquisition size on upward trend, led by property acquisition from sponsors(Acquisition price: JPY bn)

160

Other

Acquisition from sponsor
J-REITs, etc.: 484

400

140

Acquisition other than from sponsor

120

300
Other: 233
Construction andreal estate: 149
SPCs: 93

200
100
0

100
80

20

-200

0
2008 1H

2008 2H2009 1H

2009 2H2010 1H

2010 2H2011 1H

2011 2H

Prepared by Tokyo Realty Investment Management, Inc. based on Survey on Actual Real Estate Transactions by Urban Research InstituteCorporation (Mizuho Trust & Banking Co., Ltd.’s think tank).

9

2

60

3

6
1

40

-100

-300

4.2

-30

Analysis by business sector finds largest is J-REITs in amount of acquisition at 750
billion yen and amount of buying on balance at 600 billion yen in past year
Acquisitions
Buying/sellingbalance

4.7

4.0

Changes in Amount of Acquisition and Amount of Buying on Balance by Business Sector(JPY bn)

4.7-20

Prepared by Tokyo Realty Investment Management, Inc. based on data by Bank of Japan.

Construction
and real estate
Construction
and real estate

5.0

4.5

-10

2011

5.8
5.0

5.0

→

0.0
2001

5.0

Actual as ofJune 2012

2.0(Note)

5.8
5.1

5.5

(Estimate)

8.0

3

4

1
5

8

9
1

1

7

4

6
2
8
1
3
4
3
1
3
1
1
2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
(Note) Prepared by Tokyo Realty Investment Management, Inc. based on press releases by respective J-REITs, with acquisition prices
rounded off to the nearest specified unit. 1Q refers to the period from January to March and subsequent quarters refer to the 3-month
periods thereafter.

22

Office Rental Market Conditions
Secondary vacancies, etc. can be seen due to the impact of new supply in 2012 but a moderate recovery is anticipated due
to robust new demand
Changes in Average Vacancy Rates of Tokyo Office Buildings

Supply and New Demand Trends of Tokyo Office Buildings (1)Large supply in 2012 is focused in the first half and supply in the second half is expected to remain
at about 1/3 of the first half
New demand in the past year was robust at approx. 140,000 tsubos

Although vacancy rates were trending upward due to the impact of large supply in 2012, the trend was turned
around and rates have been falling moderately supported by robust tenant demand for newly-built buildings, etc.
（％）

（％）

(thousand tsubo)

（％）

10.0

60

60

10.0

Average vacancy rate (left axis)
Vacancy rate of existing buildings (left axis)
Vacancy rate of newly-built buildings (right axis)
9.4

9.5
9.2

8.9

9.0

8.8
8.7
20.4

8.5

8.6

8.0
0.0

Jun. 2011

21.7

Aug

22.3

23.7

20.4
17.2
8.6

8.5

8.8

8.7

8.6

8.7

33.8

35.7

Nov.

Dec.

33.6

30

29.1

8.6

8.6

Jan. 2012

Feb.

8.6

Mar.

Apr.

8.42

May

8.49

Jun.

8.45

Jul.

10

Net increase in leasable space (left axis)

Newly demanded space (left axis)

Vacancy rate (right axis)→ Forecasts
Actual figures ←350

Average volume
extinguished over past 5
years (left axis)

250
200

（％）

12.0
10.5

(Actual figures of July 2012)

300

9.0
7.5

(Estimate)

6.0

150

4.5

100

as of
← (Actual
July 2012)

50

3.0
1.5

0

0.0

-50

-1.5

-100

-3.0

-150

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

9.5

9.0

8.5

0

0.0
8.0

-10
[1st half of 2012][2nd half of 2012]

7.5

Jul. Aug. Sep. Oct. Nov. Dec.

(Note) Data through July 2012 was prepared by Tokyo Realty Investment Management, Inc. based on the Office Report (Tokyo
CBD) published by Miki Shoji Co., Ltd. Data for August 2012 and after were prepared by Tokyo Realty Investment
Management, Inc. based on its own survey.

Views on the Market by an Independent Institution (Office Buildings in Tokyo)

New supply in 2012 and after will continue at a certain level, but the net increase in leasable space estimatedfrom the volume extinguished will likely remain low compared to the volume of new supply, and will have only
limited impact on the market
Newly supplied space (left axis)→ Forecasts

20

Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.
2011
2012

Supply and New Demand Trends of Tokyo Office Buildings (2)400

Newly demanded space (left axis)
Actual figures ←

30

-20

0

(Note) Actual figures were prepared by Tokyo Realty Investment Management, Inc. based on the Office Report (in Tokyo CBDs)
published by Miki Shoji Co., Ltd.

(thousand tsubo)

Newly supplied space (left axis)
Average vacancy rate (right axis)

10
20

8.44

Oct.

36.4

32.5

8.4

Sep.

39.2

50
40

9.3
40

9.0

9.0

9.4

9.2

9.2

50

2014

2015

Outlook of Office Market in the 23 Wards of Tokyo
 In 2012 large-scale buildings will generally be completed as scheduled and will have large supply of 302,000 tsubos

 Companies that are viewing rents to be close to the bottom price are starting to move toward relocating to reduce
costs as well as to improve location and grade Although the European debt crisis will put downward pressure on the economy, demand for recovery from the Great
East Japan Earthquake will support the economy, and the volume of new demand in 2012 will be a relatively
sizeable 218,000 tsubos As absorption of large supply in 2012 will be difficult, the vacancy rate is forecast to remain generally flat at 7.4%
 The vacancy rate continues to remain high but the downward pressure is becoming relaxed as average contract
rents have already been significantly adjusted and tenant relocations are becoming more active
 Volume of new supply in 2013 will shrink to 109,000 tsubos as a rebound to the large supply, and the vacancy rate
which has remained high for some time will finally head toward a decrease, and it is expected to continue decreasing
in 2014 also
 Average contract rent will remain stagnant during 2013 where the after effect of the large supply will still linger, andis expected to begin increasing starting from 2014 when the vacancy rate will start to show a clear decreasing trend-4.5(Note ) Data through July 2011 was prepared by Tokyo Realty Investment Management, Inc. based on the Office Report (Tokyo CBD)
published by Miki Shoji Co., Ltd. Data for August 2012 and after were prepared by Tokyo Realty Investment Management, Inc.
based on its own survey.

(Note) Prepared by Tokyo Realty Investment Management, Inc. based on the Real Estate Market Research Report (surveyed in
Apr. 2012) by Sumitomo Mitsui Trust Research Institute Co., Ltd.

23

External Growth Strategy
Position focused investment in office properties in the greater Tokyo area as the basic strategy for external growth,
leveraging sponsors’ pipelines and promoting acquisitions from the secondary market
JPR has in the approx. 3 years since 2009 conducted focused investment in 10 office properties in the greater Tokyo area
amounting to 117.6 billion yen
JPR will advance an acquisition strategy that utilizes its sponsors’ pipelines, preferential negotiation rights, etc. and plan further
investment in Tokyo offices
 Acquisition of large development property from Tokyo Tatemono, the mainsponsorTokyo Tatemono is handling many large developments centering in Tokyo and owns
excellent properties that rarely flow through the transaction market. Also, Tokyo
Tatemono has in the area of focus in its medium-term business plan the continued
expansion of REIT and real estate fund management business. Its policy for JPR is toOtemachi 1-6 Planfurther strengthen the collection of information to be passed through the sponsor(tentative name)pipeline.
(ownership of land with leasehold)

Focusedinvestment in officeproperties in thegreater Tokyo area

Olinas Tower

Investment Ratio by Location andby Asset Class

Retail properties
24.3%

Office properties
In the greater
Tokyo area(acquired in andbefore 2008)9.6%

 Supply of properties from other sponsors such as Taisei Corporation
JPR has also acquired many properties from its 4 other sponsors. JPR will watch thechanges in the sponsors’ business environments going forward and consider together
with the sponsors the strengthening of supply of properties from a long-term
perspective.

 Utilizing various property acquisition methods and promoting an investment
strategy based on excellent sourcing abilities
JPR also has a history of property acquisitions from third parties other than its
sponsors. It engages in property acquisitions that utilize various acquisition methods
such as additional acquisition of co-ownership of shared properties that makes use ofpreferential negotiation rights.
(JPR possesses preferential negotiation rights for a majority of the 20 office properties
in the greater Tokyo area for which it owns land with leasehold or has co-ownership or
partial unit ownership.)

Office properties in
the greater Tokyo
area (acquired in andafter 2009)

30.0%

Rise Arena Bldg.

JPR Ningyocho Bldg.

Greater Tokyo area
66.1%

Property Acquisitions that
Utilized Sponsors’ Pipelines
Transactions withthird parties
BYGS Shinjuku Bldg.

Ginza Sanwa Bldg.

Acquired regional property for the first time in approx. 6 years, complementing profitability of portfolio with relatively high yields

48.0%

Properties acquired
from parties
other thansponsors, etc.

30.9%

Selective
investment inregional officebuildings and retailproperties

36.1%

Office (other cities)

Properties acquired withinformation provided
by sponsors

 Selective investment in regional office buildings
As the capacity for expanding investment size per property was generated due to thegrowth of the portfolio asset size, JPR will selectively invest in large regional offices withhigh area competitiveness.

17.0%
Yakuin Business Garden Replacement of assets centering on retail properties
The yields of JPR’s retail properties are comparatively higher than its office buildings and they contribute to the raising theoverall portfolio’s earnings. However, some of these properties cannot be expected to continually grow in the future while
they can be sold at preferable prices. Opportunities for replacements centering on these assets will be considered.

Properties
acquiredfrom sponsors,
etc.
52.0%

Acquisitions
that utilized
sponsors’ pipelines
69.1%

24

[Reference] Development Projects which Tokyo Tatemono is Undertaking in the Tokyo Station Area
The following graphic shows properties owned, or development projects being undertaken, by Tokyo Tatemono Co., Ltd., its affiliates or special purpose companies inwhich Tokyo Tatemono Co., Ltd. has interests in the Tokyo station area.
As of August 17, 2012, we have not yet entered into negotiations with Tokyo Tatemono Co., Ltd., or any other party to acquire any of these properties, with the
exception of the Otemachi 1-6 Plan (land with land leasehold), which we acquired in March 2012.
Development Projects

Developed Properties

1. JA Building
Keidanren
Kaikan7. Nihonbashi
IT Building

JR Shinnihonbashi
Sta.

7
Kandabashi JCT
YUITOTei Park

2. Otemachi
Financial
City(North Tower)

Otemachi
Building

Tokyo Metro
Marunouchi Line
Marunouchi
OAZOTokyo Metro
Tozai Line
Shangri-La
Hotel

Shin-Marunouchi
Building
Tokyo Metro
Tokyo Sta.
Marunouchi
Building

16. Kyobashi
2-chome
Project (a)Daimaru

Sotobori-doriTakashimaya
Tokyo Metro
Ginza Line
Toei Asakusa
Yanmar TokyoLine
Building

Pacific Century
Place Marunouchi

Yaesu-dori
Bridgestone
Building
Chuo-dori(a) The names of these properties have not been determined.

4. Tokyo Tatemono Muromachi Bldg.
5. Tokyo Tatemono Daisan Muromachi Bldg.
6. Tosho Bldg.

Showa-doriTokyo Sta.
Tokyo
International
Forum

12. Tokyo
Tatemono
Yaesu Bldg.

COREDO
Nihonbashi
Nihombashi Sta.

JR Tokyo Sta.

Yaesu Book
Center

17. Kyobashi
3-1 Project (a)8. Tokyo Tatemono
Nihonbashi
Honcho Bldg.

BOJ Currency Mitsukoshi
MuseumMitsukoshimae Sta.
Gofukubashi JCT

Otemachi Sta.

3. Otemachi
1-6 Plan(a) (Note)

COREDO
Muromachi

Bank of Japan

Takaracho Lamp

9. Shingofukubashi Bldg.
10. Nihonbashi First Bldg.
11. Nihonbashi 1-chome Project

Kajibashi-dori
Kyobashi Sta.
Takaramachi Sta.
JR Keiyo Line

13. Tokyo Tatemono Headquarters Bldg.
14. NTA Nihonbashi Bldg.
15. Kyobashi YS Bldg.
(Note) JPR has the ownership of land with land leasehold.

25

Internal Growth Strategy
Work to achieve recovery in occupancy rate by securing to absorb tenants’ demand for relocation, which is becoming more
active, and conduct various measures to improve NOI
Perspective of Portfolio Occupancy Rates

Number of private views of properties

Occupancy rates of office properties in the greater Tokyo area still at a low level and there is room for further increase
Since better results have been achieved than expected, strive for further lease-up going forward（%）(Views)

98

300

95.5

Results96

96.1

Number of private views significantly increased in the 21st fiscal period, primarily for properties
located in central Tokyo
Number of private views of properties (entire portfolio)
Number of private views of properties (only those located in central Tokyo)

249
250

227

238

94.1
94
93.3

93.7

Includes confirmed
contracts only

Occupancy rate for the 22nd fiscal period
includes confirmed contract status alone,including newly concluded contracts andalready notified cancellations.

90

157

Includes confirmed contracts and someassumed contracts

150

Occupancy rate for the 23rd fiscal period
assumes some new contracts, etc. on topof the assumptions for the 22nd fiscal
period

100

88

131

50

← Average 94.8％ →
0
86

190

200

92

12.1

2

3

4

5

← Average 93.9％ →6

7

8

21st Period

9

10

11

62

← Average 95.8％ →
12

13.1

22nd Period

2

3

4

5

16th Period

23rd Period

90
80
70

61

Comparison with assumptions at beginning of 21st period
Rent reduction rate: +0.8% (assumption: -2.8%)
Reduction cases: +21 contracts (assumption: 38 contracts)

-2.5

-2.0

-2.0

64

-1.6

40
30

59
35

10
0

38

20

15th
Period

36

-1.0

16th
Period17th
Period18th
Period42

19th
Period76

17th Period

18th Period

19th Period

20th Period

21st Period

20thPeriod

Leasing:
Newly set up the Leasing Supervising Group at the Asset Manager (TRIM) to further
reinforce leasing activities



Focused investment in construction work to facilitate leasing and for upgrading:
Conduct focused investment in works to renovate highly-demanded spaces and common
areas, etc., and to upgrade facility specifications



Reduction in energy costs:
Place priority on older properties in replacing facilities with energy-saving models ahead ofschedule, thereby taking advantage of the effect of energy cost reductions as early as
possibleStreamlining of operational and administrative systems:
Pursue streamlining of administrative systems, management specifications and otherfactors, primarily for properties in which JPR has co-ownership or sectional ownership, inorder to further enhance cost control that should lead to improved NOI

-1.5
-1.0

-0.5
-0.5

-0.7

-0.6

-0.5

-1.1

31

-1.3

20

（%）
-3.0

Rent reduction rate (right axis)

60
50

53

83

Initiatives to improve NOI

Worked to address high-level rent reductions during the 21st fiscal period, almost completing rent reductions for tenants
who still saw certain rent gaps with the market
Number of contracts (left axis)

80

0

6

Rent Reduction Rate Due to Downward Revision(Contracts)
100

281

21st
Period22nd
Period23rd
Period0.0(Note) Rent reduction rate expresses the amount of rent revised downward as a percentage of gross monthly rent (including common charges) at theend of the respective fiscal period.
Outlook for the 22nd fiscal period and 23rd fiscal period anticipates some assumed rent reductions in addition to the confirmed rent reductions.

26

Financial Strategy
Strive for extended duration and lower average borrowing interest rate by reaping maximum benefits from the favorable debt
financing environment
Basic Policy on Financial Strategy

Changes in base borrowing rate（％）

 Lower interest rates through refinancing

2.0 Promote long-term, fixed interest rates and diversify and level off
repayment dates

1.5

Swap rate (5Y)

1.0

 Maintain commitment line (28.0 billion yen)
0.5

 Enhance flexibility of debt financing through complete revision offinancing agreements

0.0
00.04

 Increase lenders by utilizing syndicated loans

01.04

02.04

03.04

04.04

05.04

06.04

07.04

08.04

09.04

10.04

11.04

12.04

(Note) Data has been taken from the swap rate of the five-year Tokyo Swap Reference Rate (10 a.m.) indicated on the Telerate Systems
screen 17143P.

Changes in Maturity and Average Interest Rate of Long-Term Interest-Bearing Debts
Average interest rate of long-term interest-bearing debts has been decreasing under the favorable debt financing environment, and is projected to continue decreasing slowly
On the other hand, JPR intends to increasingly extend maturity (duration) of long-term interest-bearing debts(Reference) Overview of Refinancing in the 22nd Fiscal Period

2.2%

Maturity of long-term interest-bearing debts (right axis)
Average interest rate of long-term interest-bearing debts (left axis)
2.07%

Debts to be refinanced (average interest rate)

1.99%
2.0%

(years)

1.91%
1.85%
1.76%

1.8%

22nd period: 5,900 million yen (1.55%)
23rd period: 11,000 million yen (1.39%)

1.56%

1.6%

1.54%

4.1 yrs
3.7 yrs

1.2%

3.7 yrs

3.8 yrs

3.8 yrs

54

3

3.7 yrs

0
2

0.0%
1.0%
End of 16th
PeriodEnd of 17th
PeriodEnd of 18th
PeriodEnd of 19th
PeriodEnd of 20th
PeriodEnd of 21th
PeriodAs of Aug. 17,
2012

End of 22th
PeriodBorrowing terms
Amount1.4%
4.2 yrs

Lender: Aozora Bank, Ltd.

6

2.0 billion yen

Interest rate

1.178%

Duration

7 years

Drawdown date2012.8.8

Repayment date2019.8.8

Lender: The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Borrowing terms

Borrowing terms

Amount

1.0 billion yen

1.0 billion yen

Interest rate

1.178%

Duration

7 years

Drawdown date2012.8.8

2012.8.8

Repayment date2019.8.8

2017.8.8＋

0.948%
5 years

End of 23nd
Period(Note 1) Average interest rate of long-term interest-bearing debts is a weighted average of interest rates at the end of respective periods and dates, calculated inaccordance with the balance of respective interest-bearing debts, for long-term interest-bearing debts maturing in more than one year from the end of respective
periods and dates.
(Note 2) Maturity of long-term interest-bearing debts has been rounded to the first decimal place, and average interest rate of long-term interest-bearing debts has beenrounded to the second decimal place.

27

Appendix

21stPerformance over the Past Five Fiscal Periods
Operating Revenue, Operating Income and Net Income

Change in Distributions per Unit (DPU) and FFO per Unit
（JPY）

（JPY mn）

12,00016,00014,00010,00012,0008,000
10,000
6,000

8,000
6,000

4,000

4,000
2,000

2,000
0
17th Period 18th Period 19th Period 20th Period 21st Period
Operating Revenue

Operating Income0
17th Period 18th Period 19th Period 20th Period 21st Period

Net Income

FFO per Unit (Notes 1 & 2)

DPU (Note 1)(JPY mn)

17th Period

18th Period

19th Period

20th Period

21st Period

Operating Revenue

12,314

11,87011,529

11,772

12,345

Operating Income

6,484

5,886

5,603

5,763

Net Income

4,963

4,039

4,010

4,200

(JPY)

17th Period

18th Period

19th Period

20th Period

21st Period

FFO per Unit
(Notes 1 & 2)

8,952

8,353

8,372

8,426

8,882

6,393

DPU (Note 1)

6,770

5,680

5,611

5,876

6,430

4,596

Number of Units
Outstanding

715,000

715,000

715,000

715,000

715,000(Note 1) DPU and FFO per unit are calculated by dividing distributions and FFO by the total units outstanding as of the end of each fiscal period.
(Note 2) FFO per unit = (Net income - Gains on sale of real estate - Gains on sale of investment securities - Extraordinary revenues and expenses + Depreciation + Other real estaterelated depreciation) / Total units outstanding

29

Historical Unitholder Composition
Number of Units by Investor Type
Foreign Investors

Other Domestic Companies

Financial Institutions

Individuals
Individuals

800,000
715,000

625,000

625,000

625,000

625,000

625,000

138,141

400,000

300,000

200,000

715,000

715,000

715,000

206,01928.8%

200,03028.0%

180,71125.3%

181,443
25.4%

167,425
23.4%

82,846

82,627

11.6%

11.6%

81,973
11.5%

83,98211.7%

625,000

600,000

500,000

715,000

Units Outstanding

700,000

22.1%

152,632
24.4%

74,598
11.9%

153,61324.6%

160,24525.6%

155,403

77,207

165,224
26.4%

24.9%

80,594
11.3%

Number ofunitholders
120%
Total 14,148（ -365 ）
100%
265
（+4）
80% 211（-3）

73,686
11.8%

74,05711.8%

75,986
12.2%

77,10012.3%

359,53857.5%

353,29456.5%

353,21256.5%

343,35354.9%

344,22755.1%

332,00953.1%

372,06252.0%

379,092
53.0%

399,88655.9%

397,09355.5%

411,58257.6%

124
40% （-1）(155,575）（24.9％）(163,242）（26.1％）(168,910）（27.0％）( 172,655）（27.6％）( 173,280）（27.7％）( 184,308）（29.5％）( 226,535）（31.7％）( 234,025）（32.7％）( 239,084）（33.4％）( 252,292）（35.3％）( 259,627）（36.3％）Of which,
9 are trustbanks
20% （+1）

52,723
8.4%
2007.645,388
7.3%
2007.12

44,118
7.1%
2008.645,416
7.3%
2008.1248,270
7.7%
2009.650,560
8.1%
2009.1254,073
7.6%
2010.653,251
7.4%
2010.1252,4307.3%
2011.652,482
7.3%
2011.1255,3997.7%
2012.611th Period

12th Period

13th Period

14th Period

15th Period

16th Period

17th Period

18th Period

19th Period

20th Period

21stPeriod60%

12.4%

100,000

0

13,548（-365）
0%*Figures in parentheses above represent
the change in number of unitholders
from the previous period.

(Note 1) The composition ratios in the above graph have been rounded to the first decimal place.
(Note 2) Figures in parentheses in the graph represent the number of investment units owned by trust banks within the category of financial institutions (including securities companies).

Principle Unitholders
20th Fiscal Period (Ended December 2011)
Name

21st Fiscal Period (Ended June 2012)
Number of Units
Owned

Japan Trustee Services Bank, Ltd. (Trust Account)
The Nomura Trust and Banking Co., Ltd. (Investment Trsut Account)
Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)
Tokyo Tatemono Co., Ltd.
Northern Trust Company (AVFC), Account Singapore Clients (Standing Proxy:
The Hongkong and Shanghai Banking Corporation Ltd., Tokyo Branch)
Kawasaki Gakuen
Meiji Yasuda Life Insurance Company
The Master Trust Bank of Japan, Ltd. (Trust Account)
The Senshu Ikeda Bank, Ltd.
Nomura Bank (Luxembourg) S. A. (Standing Proxy: Sumitomo Mitsui Banking
Corporation)

129,11953,65242,04329,300Total% of Units
Outstanding*

18.05%
7.50%
5.88%
4.09%

27,2583.81%

25,00024,00023,00013,630

3.49%
3.35%
3.21%
1.90%

13,0961.83%

380,098

53.16%

Name

Number of Units
Owned% of Units
Outstanding*Japan Trustee Services Bank, Ltd. (Trust Account)
The Nomura Trust and Banking Co., Ltd. (Investment Trsut Account)
Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)
Tokyo Tatemono Co., Ltd.
Northern Trust Company (AVFC), Account Singapore Clients (Standing Proxy:
The Hongkong and Shanghai Banking Corporation Ltd., Tokyo Branch)
The Master Trust Bank of Japan, Ltd. (Trust Account)Kawasaki Gakuen
Meiji Yasuda Life Insurance Company
Nomura Bank (Luxembourg) S. A. (Standing Proxy: Sumitomo Mitsui Banking
Corporation)
Deutsche Securities Inc.

143,60744,27839,39029,30020.08%
6.19%
5.50%
4.09%

9,256

1.29%

Total

386,77954.09%

27,2583.81%

26,85825,00024,000

3.75%
3.49%
3.35%

17,8322.49%(Note) For the percentages of units outstanding, figures after the second decimal place have been rounded off30

Milestones since IPO and Historical Unit Price

Unit Price (closing):
JPY 208,800 (Aug. 10, 2012)
All-Time High (trading): JPY 564,000 (May 7, 2007)
All-Time Low (trading): JPY 130,300 (Oct. 28, 2008)(JPY)
600,000
Add-on Offering
Feb. 7, 2007
Offering Price: JPY 449,820
Unit Issued/Sold: 95,000

550,000

500,000

2007 Add-on Offering Price
450,000
MSCI Standard Index
Introduced on
May 13, 2005
400,000

350,000

Add-on Offering
Jul. 31, 2012
Offering Price: JPY 194,610
Unit Issued/Sold: 110,000

Add-on Offering
Jul. 15, 2003
Offering Price: JPY 237,160
Unit Issued/Sold: 144,400
Add-on Offering
Feb. 9, 2010
Offering Price: JPY 168,101
Unit Issued/Sold: 90,000

300,000

2005 Add-on Offering Price
250,000

2003 Add-on Offering Price
Add-on Offering
Feb. 2, 2005
Offering Price: JPY 272,440
Unit Issued/ Sold: 100,000

200,000

150,000

2002 IPO Offering Price2012 Add-on Offering Price2010 Add-on Offering Price

Listed on Tokyo Stock Exchange
Jun. 14, 2002
Offering Price: JPY 200,000
Unit Issued /Sold: 182,000

100,000
Jun. 2002 Dec. 2002 Jun. 2003

Dec. 2003 Jun. 2004

Dec. 2004 Jun. 2005 Dec. 2005 Jun. 2006

Dec. 2006 Jun. 2007

Dec. 2007 Jun. 2008 Dec. 2008 Jun. 2009

Dec. 2009 Jun. 2010

Dec. 2010 Jun. 2011 Dec. 2011 Jun. 2012

Fiscal Period

1st Period

2nd Period

3rd Period

4th Period

5th Period

6th Period

7th Period

8th Period

9th Period

10th Period

11th Period

12th Period

13th Period

14th Period

15th Period

16th Period

17th Period

18th Period

19th Period

20th Period

21st PeriodDPU2,545 yen

6,912 yen

6,873 yen

5,738 yen

6,081 yen

6,671 yen

6,370 yen

6,411 yen

6,509 yen

6,873 yen

6,996 yen

6,671 yen

7,122 yen

7,092 yen

3,731 yen

6,933 yen

6,770 yen

5,680 yen

5,611 yen

5,876 yen

6,430 yen

31

Changes in Variation between Appraisal Value and Book Value at End of Period
NAV (as of Jun.2012) 214,588 yen

P/NAV:1.00 (Note 1)

11th Period

12th Period

13th Period

14th Period

15th Period

16th Period

17th Period

18th Period

19th Period

20th Period

21st Period

Jun. 2007

Dec. 2007

Jun. 2008

Dec. 2008

Jun. 2009

Dec. 2009

Jun. 2010

Dec. 2010

Jun. 2011

Dec. 2011

Jun. 2012

Number of properties

48

49

50

52

51

53

55

56

56

57

58

Appraisal value at end of
period (JPY mn)

285,176

299,995

322,984

311,513300,509

301,979

308,134

315,806

313,274

314,704

347,558

Book Value (JPY mn)

240,546

246,002

268,506

273,323

292,607

303,090322,804

331,804

330,536

332,880

370,163

44,63053,99354,47838,190

7,902-1,111-14,670-15,998-17,262-18,176-22,605

18.60%

21.90%

20.30%

14.00%

2.70%-0.37%-4.54%-4.82%-5.22%-5.46%-6.11%

Variation (unrealized
gains: JPY mn)
Ratio of unrealized gains
or losses (Note 2)(Note 1) NAV: Net assets per unit after including unrealized gains = (Net assets at end of period + Unrealized gains or losses) / Number of outstanding units issued at end of period
P/NAV: Unit Price (Aug. 10, 2012) / NAV(Note 2) Ratio of unrealized gains or loss = Variation / book value x 100(JPY mn)
60,000
Variation (unrealized gains or losses: JPY mn)
差額（含み益：百万円）

48,00036,00024,00053,99354,47844,63038,19012,0007,902

0-1,111-12,000-24,000-14,670-15,998-17,262-18,176-22,605

Jun.
2007
2007.6Dec.
2007
2007.12Jun.
2008
2008.6Dec.
2008
2008.12Jun.
20092009.6Dec.
2009
2009.12Jun.
20102010.6Dec.
2010
2010.12Jun.
20112011.6Dec.
2011
2011.12Jun.
20122012.6

第11期
11th
Period

第12期
12thPeriod

第13期
13th
Period

第14期
14th
Period

第15期
15thPeriod

第16期
16th
Period

第17期
17th
Period

第18期
18th
Period

第19期
19th
Period

第20期
20thPeriod

第21期
21stPeriod32

Appraisals and Cap Rates at End of Period
Property Name

(Note 2)

(Note 1)

Change(b-a, JPY mn, %)End of 20th Period (a)Appraiser

Area No.

Property Name

(Note 2)

1

Kanematsu Building

10,2004.7%

10,600

4.6%

400

3.9%

3

2

Kanematsu Building Annex

2,060

5.1%

2,040

5.1%

-20

-1.0%

3

3

JPR Ningyo-cho Building

2,260

5.1%

2,100

5.1%

-160

-7.1%

1

4

Shin-Kojimachi Building

3,030

4.8%

3,050

4.8%

20

0.7%

1

End of 21st Period (b)Appraisal Value Cap Rate Appraisal Value Cap Rate

(Note 1)

(Note 2)

(Note 1)

Change(b-a, JPY mn, %)Appraiser(Note 2)38

Olinas Tower

32,3004.7%

32,300

4.7%

－

－

1

39

Tokyo Tatemono Yokohama Building

6,990

5.6%

6,910

5.7%

-80

-1.1%

1

40

Tanashi ASTA

12,3005.8%

12,500

5.7%

200

1.6%

5

41

Cupo-la Main Building

2,480

5.9%

2,500

5.9%

20

0.8%

1

42

JPR Musashikosugi Building

5,280

5.2%

5,270

5.2%

-10

-0.2%

8

43

Musashiurawa Shopping Square

3,920

5.4%

3,960

5.4%

40

1.0%

8

14,664

4.7%

14,560

4.7%

-104

-0.7%

7
2

5 JPR Crest Takebashi Building

3,470

4.7%

3,410

4.7%

-60

-1.7%

5

6

MS Shibaura Building

13,4004.9%

12,3004.9%-1,100

-8.2%

1

7

Gotanda First Building

2,850

5.0%

2,770

5.0%

-80

-2.8%

1

44

Kawasaki Dice Bldg.

8

Fukuoka Building

3,180

4.5%

3,170

4.5%

-10

-0.3%

5

45

Niigata Ekinan Center Building

2,090

6.7%

2,090

6.7%

－

－

9

JPR Ichigaya Building

4,760

4.6%

4,770

4.6%

10

0.2%

5

46

Tokyo Tatemono Honmachi Building

3,210

5.7%

3,210

5.7%

－

－

1

10

Oval Court Ohsaki Mark West

4,280

4.8%

4,200

4.8%

-80

-1.9%

5

47

JPR Hakata Building

2,890

6.0%

2,770

6.0%

-120

-4.2%

2

11

Shinjuku Square Tower

7,796

4.6%

7,685

4.6%

-111

-1.4%

6

48

JPR Naha Building

1,460

6.8%

1,460

6.7%

－

－

2

12

BYGS Shinjuku Building

13,700

4.6%

13,400

4.6%

-300

-2.2%

5

49

Sompo Japan Sendai Building

3,320

6.3%

3,300

6.3%

-20

-0.6%

1

819

5.5%

813

5.5%

-6

-0.7%

5

50 Sompo Japan Wakay ama Building

13,3004.3%

12,500

4.3%

-800

-6.0%

1

13 Across Shinagawa Building Annex
14

Shinjuku Center Building

Other cities

Tokyo CBDs

(Note 1)

51

Tenjin 121 Building

15

Minami Azabu Building

2,730

5.2%

2,830

5.4%

100

3.7%

1

16

Shinagawa Canal Building

1,790

4.9%

1,780

4.9%

-10

-0.6%

1

17

Rokubancho Building

3,090

6.1%

3,110

7.2%

20

0.6%

1

18

Ryoshin Harajuku Building

7,250

4.5%

6,830

4.5%

-420

-5.8%

8

55

19

Tokyo Tatemono Kyobashi Building

5,210

4.9%

5,210

4.9%

－

－

1

56

5,740

4.9%

5,630

4.9%

-110

-1.9%

8

57

Housing Design Center Kobe

58

JPR Chayamachi Building

20 JPR Nihonbashi-horidome Building

Greater Tokyo

End of 21st Period (b)Appraisal Value Cap Rate Appraisal Value Cap Rate

Greater Tokyo

End of 20th Period (a)Area No.

21

JPR Sendagaya Building

10,200

4.4%

10,300

4.4%

100

1.0%

8

22

Ginza Sanwa Building

3,430

3.8%

3,230

3.8%

-200

-5.8%

8

23

Otemac hi 1-6 Plan (tentativ e name) (land with land leas ehold)－－36,800

3.6%

－

－

5

24

JPR Shibuya Tower Records Building

12,600

4.5%

12,100

4.4%

-500

-4.0%

1

25

JPR Daikanyama

1,280

5.1%

1,270

5.1%

-10

-0.8%

3

26

JPR Jingumae 432

3,750

3.5%

3,700

3.5%

-50

-1.3%

7

27 Shinjuku Sanchome East Building

2,330

4.5%

2,390

4.4%

60

2.6%

1

28

2,620

4.3%

2,620

4.2%

－

－

1

Yurakucho Ekimae Building (Yurakucho Itocia)

1,670

7.5%

1,660

7.5%

-10

-0.6%

1

2,070

5.8%

2,080

5.7%

10

0.5%

1
1

52

JPR Dojima Building

2,180

5.3%

2,050

5.4%

-130

-6.0%

53

JPR Hakata-chuo Building

1,640

5.7%

1,650

5.7%

10

0.6%

1

2,660

6.3%

2,770

6.2%

110

4.1%

4

JPR Umeda Loft Building

13,5004.8%

13,600

4.8%

100

0.7%

6

Benetton Shinsaibashi Building

4,270

4.8%

4,340

4.8%

70

1.6%

4

6,460

6.2%

6,430

6.2%

-30

-0.5%

4

4,540

5.0%

4,550

5.0%

10

0.2%

4

314,704－

347,558－-3,94654 JPR Nagoya Fushimi Building

Total

Properties whose appraisal values decreased by 5% or more compared with those at the end of the 20th period

Properties whose appraisal values increased compared with those at the end of the 20th period

29

Arca East

5,890

4.7%

5,750

4.7%

-140

-2.4%

1

AppraiserNo.

30

JPR Chiba Building

1,550

6.1%

1,550

6.1%

－

－

5

Japan Real Estate Institute1

31

JPR Yokohama Nihon Odori Building

2,460

5.7%

2,400

5.7%

-60

-2.4%

5

The Tanizawa Sogo Appraisal Co., Ltd.

2

32

Shinyokohama 2nd Center Building

815

6.1%

840

6.0%

25

3.1%

3

Nippon Tochi-Tatemono Co., Ltd.

3

33

Kawaguchi Center Building

8,020

6.0%

7,700

6.0%

-320

-4.0%

3

CBRE K.K.

4

34

JPR Ueno East Building

4,620

5.1%

4,570

5.1%

-50

-1.1%

1

Daiwa Real Estate Appraisal Co., Ltd.

5

35

Tachikawa Business Center Building

2,880

5.6%

2,890

5.6%

10

0.3%

1

LCR Co., Ltd.

6

36

Rise Arena Building

5,890

5.6%

6,030

5.4%

140

2.4%

4

Appraisal Firm A Square Ltd.

7

37

Yume-ooka Office Tower

5,560

5.6%

5,260

5.6%

-300

-5.4%

1

Japan Valuers Co., Ltd.

8

(Note 1) At end of period (JPY mn)(Note 2) Direct Capitalization Method(Note 3) The Direct Capitalization Method is a method for
determining income using the capitalization method (amethod that determines the price of targeted real estate bydetermining the sum of the current price of the net incomethat the targeted real estate is expected to produce in the
future), which discounts the net income for a set periodusing the cap rate.
(Note 4) “Otemachi 1-6 Plan (tentative name) (land with landleasehold)” acquired in the 20th period is excluded from the
Change column.

33

NOI Yield by Property for the 21st Fiscal Period
Portfolio NOI: 4.9%
0.0%

2.0%

4.0%

Kanematsu Building

2.7%

Kanematsu Building Annex

2.7%

JPR Ningyo-cho Building

6.0%

8.0%

10.0%

Office building NOI: 4.8% Retail property NOI: 5.1%
0.0%

← Entire portfolio: 4.9%

2.0%

4.0%

6.0%

3.1%

Arca East

5.9%

JPR Yokohama Nihon Odori Building

6.5%

Shinyokohama 2nd Center Building

4.9%

Shin-Kojimachi Building

5.5%

Kawaguchi Center Building
3.5%

JPR Crest Takebashi Building

Gotanda First Building

6.3%

Fukuoka Building

6.3%
5.0%

JPR Ichigaya Building

Tokyo CBDS

2.6%
5.2%

Shinagawa Canal Building

Tokyo Tatemono…

6.2%

JPR Nihonbashi Horidome Building

3.3%
7.8%

Otemachi 1-6 Plan
5.0%

JPR Shibuya Tower Records Building
2.8%
2.7%

Other Cities

2.7%

JPR Daikanyama

5.2%
4.4%
2.0%

4.0%

6.0%

8.0%

7.8%

6.3%
5.4%

Sompo Japan Sendai…

7.9%

Sompo Japan Wakayama…

7.8%

Tenjin 121 Building

3.7%
6.6%

JPR Dojima Building
5.4%

JPR Hakata-chuo Building
JPR Nagoya Fushimi…

2.9%
5.4%

JPR Umeda Loft Building
Benetton Shinsaibashi…

Shinjuku Sanchome East Building

3.5%

Housing Design Center Kobe

Yurakucho Ekimae Building (Yurakucho Itocia)

3.3%

JPR Chayamachi Building

10.0%

3.7%

JPR Naha Building

5.6%

JPR Jingumae 432

7.2%
4.6%

JPR Hakata Building

3.7%

Tokyo Tatemono Kyobashi Building

Ginza Sanwa building

10.0%

Niigata Ekinan Center…
7.4%

Rokubancho Building

JPR Sendagaya Building

6.8%

Kawasaki Dice Bldg.
0.0%

JPR Harajuku Building

5.1%

Olinas Tower

Musashiurawa Shopping Square

6.5%

Minami Azabu Building

4.9%

JPR Musashikosugi Building

Across Shinagawa Building Annex
2.8%

5.8%

Rise Arena Building
Yume-ooka Office Tower

Cupo-la Main Building
4.0%

Shinjuku Center Building

6.4%

Tanashi ASTA

2.7%

BYGS Shinjuku Building

6.1%

JPR Ueno East Building
Tachikawa Business Center Building

Tokyo Tatemono Yokohama Building

7.0%

Oval Court Ohsaki Mark West
Shinjuku Square Tower

Greater Tokyo

5.5%

MS Shibaura Building

10.0%← Entire portfolio: 4.9%
4.7%

JPR Chiba Building

2.5%

8.0%

3.8%
5.6%
3.6%

(Note) NOI yield = (Operating revenues - Operating expenses + Depreciation) x 365 / 182 ÷Acquisition price. However, for properties acquired during the fiscal period, the annualized NOI yield has been calculated on a daily pro rata basis.
The entered properties are those owned as of the end of the 21st fiscal period.

34

Contracting Status of Tenants by Property for the 21st Fiscal Period
Occupied / Vacated Floor Space by Property

Net Increase / Decrease of Floor Space by Property (Occupied-Vacated)(Unit: m2)(Unit: m2)
402
402
379
379

Kanematsu Building

0

JPR Ningyo-cho Building

088

Shin-Kojimachi Building 1

88

JPR Crest Takebashi Building-1,1901,190

Shinjuku Square Tower 1

-278
-4

Tokyo
CBDs

-61

278

Shinjuku Square Tower 2

4

BYGS Shinjuku Building

61

Shinjuku Center Building

224

224

Minami Azabu Building-3,406

JPR Harajuku Building

488

JPR Nihonbashi-horidome Building-629

Arca East

-68

241

JPR Chiba Building-482

Greater
Tokyo

-133

482
550
723

130

Shinyokohama 2nd Center Building

130

629

260

JPR Sendagaya Building

260

1,054
1,186
1,384
1,005

Kawaguchi Center Building
Yume-ooka Office Tower

378

3,406

548

60

Olinas Tower-1,758176

JPR Naha Building

-677
-110

Other
cities-168

Sompo Japan Wakayama Building

-500

0

399
175
308
308

JPR Dojima Building
500

1,000

1,500

2,000

853

168

Tenjin 121 Building

0

514

182
293

Sompo Japan Sendai Building

224-3,500 -3,000 -2,500 -2,000 -1,500 -1,000

276

JPR Hakata Building

-238

1,758

86

Kawasaki Dice Building

86

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

(Unit: m2)*The above graphs exclude properties at which there were no changes in tenants during the 21st fiscal period, but include changes in tenantsfrom the amendment of lease contracts.

Occupied

VacatedNet

Office (Tokyo CBDs)

1,901

6,408

-4,508

Office (Greater Tokyo)

3,290

5,222

-1,932

Office (Other cities)

1,340

2,309

-969

Retail

86

0

86

Total

6,617

13,940-7,32335

Office Vacancy Rates and Average Advertised Rents in Major Investment Areas
Vacancy rate (Rents are average advertised rents for relevant periods. Vacancy rates are those as of the end of each fiscal period for relevant periods.)
5 Wards of Tokyo

Yokohama City
(JPY/Tsubo)

18,000

15%
12.9

12.5

15,00018,000

15%

12.3

11.8

12%

13.1

13.1

12.5

12.4

15,000

11.9
12%

8,660

9,050

0%

Sendai City

(JPY/Tsubo)
18,00015%

15,000

12%

11.0
10.0

(JPY/Tsubo)21%

18,000

9.5

14.3

9.5

9%
9,000

12,000

15%

13.2
12.1

12.8
12%

9,000

6%
6,000

12.5

9%
9,000

6%

18%

15,00010.2

12,000

9%

6,000

0

18.8

12,000

9,000

3%

3,000

2012Q20%

10.1
12,00010,1700

2012Q2

2012Q1

3%

10,16013,11013,21013,470
2011Q43,000

Sapporo City

(JPY/Tsubo)
13.3

6%
6,000

Fukuoka City

(JPY/Tsubo)
13.1

2011Q3

2011Q2

Nagoya City

13.4

13,65013,9200%
2011Q1

2012Q2

2012Q1

2011Q4

2011Q3

2011Q23%00%2011Q1

0

3,000

9%

6%
6,000

14,15012,74012,80013,05013,21013,4703%

13,680

3,000

10.0

9,000

6%
6,000

12%
10.2

12,000

9,000

6%
6,000

10.7

2012Q2

7.8
7.1

11.1

8,750

7.0

7.2

11.0

2012Q1

9,000

7.3

11.0

8,730

7.4

15,0009%

2012Q1

7.2

12%
10.5

12,000

10,200

7.9

10.8

9%

2011Q47.3

11.3

10,310

9,000

7.3

9%

10,160

7.5

11.2

2011Q2

7.6

11.8

10.4
12,00012,00015,000

2011Q4

12%

12%

15%

18,0008,860

15,00015,000(JPY/Tsubo)15%

18,000

2011Q315%

9,050

18,00010,37015%

2011Q1

18,000

2011Q2(JPY/Tsubo)(JPY/Tsubo)

Osaka City

2011Q123 Wards of Tokyo

2011Q3Advertised rents

9%

6%
6,000

6,000
6%

9,070

8,940

8,890

9,040

9,120

0

3%

2012Q2

2012Q1

2011Q4

2011Q30%
2011Q2

2012Q2

2012Q1

2011Q4

2011Q3

2011Q20%

2011Q1

0

9,020

7,730

7,750

7,990

7,930

7,890

7,880

3,000

2011Q1

2012Q2

2012Q1

2011Q4

3%

3,000

9,350

9,350

9,380

9,370

9,380

9,300

0%
2011Q3

2012Q2

2012Q1

2011Q4

2011Q3

2011Q2

2011Q10
2011Q10%0

Source: Japan Office Market Review (CBRE)

3,000

9,720

9,770

9,870

9,950

9,960

9,960

3,000

3%

2011Q2

3%

36

Environmental Initiatives
Environmental initiatives are being proactively taken, such as acquiring DBJ Green Building Certification
JPR has been continuously addressing environmental issues as part of the JPR Brand Strategy.
With initiatives for “Eco-Friendly Buildings” as the basic concept, JPR thoroughly implements
energy management based on assessment and analysis of efficient energy use for each
property, among other measures, and strives to effectively cut energy costs through systematic
introduction of energy-saving devices and by switching over to contracts with electricity suppliers.
Also, JPR is proactively developing greenery that is in harmony with the urban environment aswell as advancing ecology through the promotion of waste recycling and such.

Acquisition of DBJ Green Building Certification ~Acquisition of the First“Gold” among J-REITs~
 Development Bank of Japan Inc.’s DBJ Green Building Certification is a systemdesigned to select superior real estate that meets the demand of the times, with apurpose of promoting properties that are environmentally friendly, equipped to mitigate
disaster and prevent crime, as well as meet the various social requirements
surrounding real estate from stakeholders (“Green Buildings”). Four levels ofcertification, namely Platinum, Gold, Silver or Bronze are awarded depending on abuilding’s green level.
 In August 2011 JPR acquired Gold certification, the first achievement among J-REITs,
for Olinas Tower, and Silver certification for JPR Sendagaya Building

Olinas Tower

JPR Sendagaya Building

4-1-3 Taihei-cho, Sumida-ku,Tokyo

4-23-5 Sendagaya, Shibuya-ku, Tokyo

Acquisition of GRESB Ranking by Asset Manager Tokyo Realty
Investment Management, Inc.
 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark
system for analyzing and evaluating sustainability of real estate companies, REITs andreal estate private placement funds, in terms of environmental friendliness and social
nature. It is based on surveys conducted by a group of the same name composed ofmore than 20 organizations worldwide such as European pension asset managers.
 In the 2011 survey (Note) JPR ranked third among listed companies in Asia. JPR
believes that it was evaluated at such a high level in this survey as a result of theconsistency of the JPR system among all parties involved in the operation of buildings,
from property management companies starting with asset managers, to building
maintenance companies, under a clear environmental policy, combined with JPR’s
steady efforts to reduce energy consumption while gaining the cooperation of tenants.

JPR Brand Strategy
The “JPR Brand Strategy” is positioned
as one of our internal strategies for
improving tenant satisfaction, andincrease the earnings ratios and asset
values of our properties. This brandstrategy is based on the brand conceptof “A/3S,” which offers the ultimate in“Amenities” and optimal space byfocusing on “Service,” “Safety” and“Save Energy (environment).” Our officebuilding brand strategy is built aroundthe active promotion of these objectives.

Amenity
Creating a comfortable
space for workers

SafetyProviding safety
and security

Service
Providing attentive
services

Save Energy
Operating facilities inan environmentallyconscious manner(Note) The number of responding companies in the 2011 survey was 340 worldwide (69 listed companies and 271
private placement funds). Of these, 49 were from Asia (12 listed companies and 37 private placement funds) and
20 from Japan (5 listed companies (including J-REITs) and 15 private placement funds).

Leveraging the Know-How of the Sponsors of the Asset Manager (TRIM)
 TRIM’s features are that it entrusts operations related to environmental laws andregulations to its sponsor, Tokyo Tatemono Co, Ltd., and that it promptly established asystem to be provided with know-how and given advice. Based on the technologicalknow-how of Taisei Corporation, another sponsor, JPR places dedicated staff in theportfolio’s construction planning section and implements environmental measures.

37Governance Initiatives
JPR has consistently set reinforcement of “governance” as one of the most important themes in the sound and efficient
operation of a corporation and has consequently been establishing such a structure from the listing criteria stage
Independent Officer Composition
 At JPR, neither the executive officer nor the supervising officers serve concurrently as officers of theAsset Manager (TRIM). The independence of the JPR officers is firmly secured by appointing humanresources with high expertise, such as attorneys and accountants, from the outside.
 This arrangement should reinforce the officers’ function to check and control the Asset Manager,
ensuring sound and efficient operations of JPR.
JPR Officers
Executive Officer

Hirohito Kaneko(attorney)

Supervising Officer

Sosuke Yasuda(certified public accountant)

Supervising Officer

Masato Denawa(attorney)

Japan Prime Realty Investment Corporation
Entrust the asset management

Mutual Checks and Controls between the Investment Corporation and Asset Manager
 For important transactions and other arrangements with sponsor companies, the Compliance Committee
screens and verifies the validity and rationality of the deals, in addition to decisions made by the Board of
Directors, the Investment Policy Committee and other institutions on ordinary transaction matters.

Tokyo Realty Investment Management, Inc.

 The Compliance Committee, in which an outside attorney participates as a special member, employs
unanimous vote, not majority vote, for approvals as a rule.
 Executing transaction matters approved by the Compliance Committee requires approval in advance by
JPR’s Board of Directors, which comprises directors independent of TRIM.
 For important transaction matters that might cause problematic conflicts of interest with the sponsors,monitoring through internal and external checks and controls is conducted, involving
screening/verification and approval in advance, in order to secure sound and efficient operations. This
constitutes a characteristic feature of JPR.

40%

20%

20%

10%

10%

TRIM Compliance Committee Members
President and CEO
Corporate Planning / Administration Division
General Manager
Financial Division
General Manager

Investment Management Division
General Manager
Compliance Office
General Manager

Special member (outside attorney)

The Compliance Committee is heldby inviting an outside attorney as
special member. As a rule, theCommittee employs unanimous
voting system rather than majority
voting system.

Support and Monitoring of Management by the Asset Manager’s 5 Sponsors*Figures represent the ratio of shares owned by the respective sponsor companies against the number ofshares outstanding of the Asset Manager.

The asset management of Japan Prime Realty Investment Corporation (JPR) is
conducted by entrusting such services to an asset manager (Tokyo Realty Investment
Management, Inc. (TRIM)). TRIM maintains close relationships with its sponsors, which
are 5 companies of the Fuyo Group.

 TRIM President and CEO has assumed office after having his employment transferred to TRIM, insteadof being seconded from the sponsor company he belonged to.

Such relationships allow to build on the strengths of respective sponsor companies. On
the other hand, if the sponsor companies become too influential, priority might end up
being placed on the interest of the sponsor companies rather than the interest of theinvestment corporation, causing disadvantages to the investment corporation andunitholders. For sound and efficient operations of the investment corporation, it isparticularly important to prevent disadvantages to unitholders

 The position of Compliance Office general manager in charge of internal control is assumed by a career
employee.

To that end, JPR thinks it is vital and has worked to build a compliance structure so thatsound and efficient operations can be promised to unitholders.

 TRIM is provided support in terms of properties, human resources and information by respective sponsor
companies based on their strengths, while its shareholding composition is diversified among thesponsors so as to secure its independence as an asset manager.

 With a high proportion of career employees, the personnel structure of TRIM also serves to help secure
independence as an asset manager.

38

Disclaimer Regarding Forward-Looking Statements

This material contains information that constitutes forward-looking statements. Such forward-looking
statements are made by Japan Prime Realty Investment Corporation and Tokyo Realty Investment
Management, Inc. 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 aresult of various factors including known or unknown risks and uncertainties.
This material is solely for the purpose of providing information and it is not intended for the purpose ofoffering or soliciting investment, or as a recommendation to purchase or sell any specific product.
Please refer any inquiries for possible purchases of units or other products of Japan Prime Realty
Investment Corporation to a securities dealer.
Although Japan Prime Realty Investment Corporation takes all possible measures to ensure theaccuracy of the content provided in this material (including references to legislation and taxation), it
makes no guarantee as to the accuracy of the content. Furthermore, the content may be subject tochange without prior notification.
Please further note that this English material is a provisional translation of the original Japanesematerial.

39