36th
Report on Operating and Management Results
Thirty-Sixth Fiscal Period Semi-Annual Report
July 1, 2019 – December 31, 2019Japan Prime Realty Investment Corporation

JPR Sendagaya Bldg.

JPR Kojimachi Bldg. (former name: KY Kojimachi Bldg.)

Determined Cash Distribution

Forecast Cash Distribution (reference)

The 36th fiscal period ended December 2019

The 37th fiscal period ending June 2020

The 38th fiscal period ending December 2020

¥7,493¥7,590¥7,720Contents
JPR at a Glance

1

Asset Management Report30

Message to Our Unitholders

2

Financial Statements

52

Account Highlights

3(1) Balance Sheets

52

36th Fiscal Period Topics

4(2) Statements of Income and Retained Earnings

54

Internal Growth Strategy

5(3) Statements of Changes in Unitholders’ Equity

55

External Growth Strategy

6(4) Statements of Cash Distributions

56

Financial Strategy

7(5) Statements of Cash Flows

57

Initiatives on Sustainability

8(6) Notes to Financial Statements

58

Portfolio Status

12(7) Detailed Schedules

67

Overview of Portfolio Properties

14(8) Independent Auditor’s Report

71

Structure and History of JPR

28(9) Other Notes (Information only)

72

Overview of Asset Manager

29

Investor Information

73

JPR at a Glance
Japan Prime Realty Investment Corporation (JPR) is a J-REIT with a large-scale combined portfolio that is
focused on office properties in Tokyo (Note). It aims to achieve stable growth of cash distributions, building on
the quality of its properties and solid management operations.
(Note) “Office properties in Tokyo” represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba,
Kanagawa and Saitama Prefectures) (the same applies throughout this report).

Portfolio
JPR has built a large-scale combined portfolio of assets
under the basic policy of making investments focused on
office properties in Tokyo.

No. of Properties and Size

63 properties 439.5 billion yen
Investment Ratio by Area
Tokyo:

84.7% Other Cities: 15.3%
Investment Ratio by Asset Class

Office:Financial BaseJPR has constructed a financial base under the basic
policy of conservatively controlling LTV and utilizing
long-term, fixed interest rate debts.

76.2%

Retail, etc.:

23.8%

Ratio of interest-bearing debts to total assets (LTV)

40.8%
Ratio of Long-Term, Fixed Interest Rate Debts

99.5%
Issuer Rating

AA- (R&I)
Sponsors
JPR makes the best of the comprehensive capabilities in
the real estate, construction and finance areas of the fivesponsors led by Tokyo Tatemono together with Yasuda
Real Estate, Taisei Corporation, Sompo Japan
Nipponkoa Insurance and Meiji Yasuda Life Insurance.

(Note) Aggregate value of properties acquired from and based on information provided bysponsors, etc. refers to the aggregate acquisition price of real estate, etc. JPR has acquiredsince its listing either from the sponsors, etc. or based on the information provided by thesponsors, etc., and includes the properties already sold.
Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment(the same applies throughout this report).

A (S&P)

Aggregate Value of Properties Acquired from andBased on Information Provided by Sponsors, etc.

350.9 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

Yakuin Business Garden

1Message to Our Unitholders

Japan Prime Realty Investment Corporation

Masato Denawa
Supervising Officer

Yoshihiro Jozaki

Nobuhisa Kusanagi

Executive Officer

Supervising Officer

Dear Unitholders,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 36th fiscal period (July 1, 2019 – December 31, 2019) at the end of December
2019, we renew our cordial appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize our stable growth over the medium tolong term while taking into account the governance of JPR as an investment corporation.
We ask you, our unitholders, to extend us continued consideration and support of our operations.

Financial Results of the 36th Fiscal Period Ended December 2019❚❚ Cash distribution per unit: ¥7,493(up ¥113 period-on-period)❚❚ Achieved a period-on-period increase in cash
distributions for the twelfth straightfiscal period❚❚ Forecast distribution per unit for the next
fiscal period: ¥7,590(37th fiscal period ending June 2020)❚❚ Forecast distribution per unit for the fiscal
period after the next period: ¥7,720(38th fiscal period ending December 2020)

For the 36th fiscal period, occupancy continued to stay at a highlevel, backed by the office property leasing market remaining ingood shape, and upward revision of rents upon contract
renewals also made steady progress. Distribution per unit stood
at 7,493 yen to achieve a new record high since listing, marking
the twelfth straight fiscal period with a period-on-period
increase.
For the 37th fiscal period ending June 2020 and thereafter, JPR
expects distribution per unit to remain strong. On top ofinternal growth anticipated to continue, JPR will put efforts into
external growth with an aim to achieve stable growth of
distribution per unit. We are united in this endeavor in an effort
to meet the expectations of our unitholders.

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

2

Japan Prime Realty Investment Corporation

Account Highlights
Status of Distribution per Unit(yen/unit)

8,000❚❚ Distribution per unit rose to ¥7,493(up ¥113 period-on-period)(Forecast)(Forecast)❚❚ Achieved a new record high7,493

since listing

7,500

7,213 7,223 7,245

7,326

7,590

7,720

7,380

7,048
7,000

6,756
6,588
6,500

6,351

6,419

Twelve straight fiscal periods

6,150
6,000

with a period-on-period increase in cash
distributions

6,006

0
24th
Period25th
Period26th
Period27th
Period28th
Period29th
Period30th
Period31st
Period32nd
Period33rd
Period34th
Period35th
Period36th
Period37th
Period38th
Period(Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2019)

Operating Results
35th Period
36th Period
ended Jun. 2019 ended Dec. 2019
Operating revenue

16,101(million yen)

[15,695]

Operating expenses

16,005

8,147

8,320

Operating income

7,954(million yen)

[7,548]

7,684(million yen)

Non-operating income

Change-95(+309)+173-269(+136)

72

7

-65

810

777

-32

Ordinary income

7,216(million yen)

[6,811]

6,915

Net income

7,216(million yen)

[6,810](million yen)

Non-operating expenses(million yen)

Distribution per unit
(yen)

7,380

*Figures in brackets indicate the amount excluding gain on sale of property.

6,914
7,493

-301

TOPIC 1
Revenue from rent business excluding
gain on sale of property increased by 309
million yen due to asset replacement
conducted in the previous fiscal period
contributing throughout the 36th fiscal
period and upward revision of rents upon
contract renewals, among other factors.

TOPIC 2
Utilities expenses (a seasonal factor) andbrokerage fees increased.

(+104)-301(+104)+113

TOPIC 3Non-operating expenses decreased due toa decrease in interest expenses throughrefinancing of borrowings in a lowinterest rate environment.

3

36th Fiscal Period Topics
Reinforced Competitiveness through Investments for Value Enhancement
JPR conducts continuous maintenance operations and proactive investments for value enhancement, basedon systematic repair plans. These activities have led to enhanced tenant satisfaction and other benefits,
contributing to reinforced competitiveness of the properties owned by JPR.
Case 1JPR Musashikosugi Bldg.

BeforeBeforeAfter

Case 2After

JPR Ningyo-cho Bldg.

BeforeBefore
After

After

Promotion of Works for Reducing Environmental Footprint
JPR believes that expanding eco-friendly assets should help enhance the quality of its portfolio. JPR
systematically conducts works to upgrade to more energy-efficient facilities and equipment, resulting inenhanced property value and reduced utilities expenses and other costs.
Trends of Works Related to LED Lamps and Air-Conditioning Units(million yen)

Replacement to LED lamps

400

Works related to air-conditioning units
368

339
310
300
258
Replacement of lighting equipment with LED lamps in
exclusive areas of Kanematsu Bldg.

227

211

205

200

185

173
152

130

123

100

0
Replacement of air-conditioning units in elevator hallsof JPR Shinsaibashi Bldg.

4

31st Period(Jun. 2017)

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

125
105

34th Period(Dec. 2018)35th Period(Jun. 2019)36th Period(Dec. 2019)37th Period(Jun. 2020)(planned)Japan Prime Realty Investment Corporation

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

Major Reinforcement Strategies
1. Flexibly use target rents

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

2. Reinforce investments forvalue enhancement

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

3. Continuously enhancetenant satisfaction

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

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
remained at a high level, with thefigure reaching the 99% level for the36th fiscal period.

Entire portfolio

Office properties

Retail properties, etc.

(%)

100

99.4

100.0
98.5

99.7
98.4

97.8

97.8

97.6

31st Period(Jun. 2017)

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

98.2

99.9

99.9

99.2

99.2

98.8

98.8

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

98

100.0

99.5
99.2

96

94

92

0

36th Period(Dec. 2019)

Changes in Revised Amount of Monthly Rent, Etc.
Steady progress was made in
negotiations on upward revision ofrents.

(million yen)

Upward revision

30

Downward revision
+24.5

20

+17.1
+14.6

+13.4
+10.0

10

+7.4

0

-0.2
-5.8

-10

31st Period(Jun. 2017)

-3.9

-3.0

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

34th Period(Dec. 2018)

-1.9

-1.1

35th Period(Jun. 2019)36th Period(Dec. 2019)5

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

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

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

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

2. Vigorously selective
investments in retailproperties, etc. as well as officeproperties in regional cities

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

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

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

FUNDES Ueno

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

FUNDES Ueno was acquired from
Tokyo Tatemono.

Tokyo Tatemono
Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance■■ Utilization of Sponsor Pipelines
At JPR, properties acquired from its sponsors, etc. (49.9%) andproperties acquired based on the information provided by thesponsors (22.4%) together constitute 72.3% of the entire portfolio(on an acquisition price basis).
Going forward, JPR will continue to utilize the sponsor pipelines inan endeavor to enhance the quality of the portfolio throughvigorously selective investments in blue-chip properties and strategic
asset replacement.

(securities code: 8955)

Properties acquiredby utilizing sponsor pipelines

72.3%

Properties acquired
from third parties

121.7 Properties
billion yen

acquired from

27.7% sponsors, etc.
98.2 219.4
billion yen

Properties acquired
based on information
provided by sponsors

6

Japan Prime Realty
Investment Corporation

billion yen

22.4% 49.9%

Japan Prime Realty Investment Corporation

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

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 36th fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

Ratio of interest-bearing debts to total assets (LTV)

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

40.8%

AA- (Stable)

Ratio of long-term, fixed interest rate debts

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

99.5%

Long-term:A (Stable)

Short-term:

A-1

Financing Status for the 36th Fiscal Period
JPR has successfully reduced debt cost while placing more emphasis on lengthening the maturity of procured debts
and diversifying the repayment dates.
Comparison of Debts Matured andNew Debts Procured in the 36th
PeriodAverage maturity(excluding short-term loans payable)

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

Average maturity (right axis)

1.2
1.16

6.5 years ➤ 8.4 years

1.10

0.9

(years)Average debt cost (left axis)

0.96

0.94

1.03

0.90

0.87

8.0

6.0

0.80

(up 1.8 years)

0.6

Average debt cost(excluding short-term loans payable)

0.3

0.93% ➤ 0.48%(down 0.44%)

0.0

4.0
4.2
years

4.2
years

4.6
years

4.3
years

4.6
years

4.5
years

4.5
years

4.6
years

2.0

29th Period 30th Period 31st Period 32nd Period 33rd Period 34th Period 35th Period 36th Period(Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019)

0.0

Diversification of Repayment Dates for Interest-Bearing Debts
JPR has endeavored to mitigate refinance risks by diversifying repayment dates while establishing a commitment linewith a credit limit of 24 billion yen.
(billion yen)

Investment corporation bonds

Long-term loans payable

20

Short-term loans payable

15
1.0
10

13.05

2.0
10.0

11.0

9.8

10.0

10.5

8.0

8.0

13.0

5.0

3.0

7.0

8.0

10.0

9.9

10.0

8.5

3.0
0

37th
Period38th
Period39th
Period40th
Period41st
Period42nd
Period43rd
Period44th
Period45th
Period46th
Period47th
Period48th
Period49th
Period50th
Period

3.0

9.0

51st
Period

5.0

4.2

52nd
Period53rd
Period

7.1

5.0
4.0

54th
Period55th
Period56th
Period(Jun. 2020) (Dec. 2020) (Jun. 2021) (Dec. 2021) (Jun. 2022) (Dec. 2022) (Jun. 2023) (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) (Dec. 2026) (Jun. 2027) (Dec. 2027) (Jun. 2028) (Dec. 2028) (Jun. 2029) (Dec. 2029)

7

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

1. Sustainability Promotion System
TRIM has established the Sustainability Committee to continuously
and systematically promote its initiatives on sustainability.
Sustainability Committee
Chairman: President & CEO
Members:	Investment Management Division generalmanager
Financial Division general manager
	Corporate Planning/Administration
Division general manager
Compliance Office general manager
Secretariat: Secretariat for Sustainability
Activities• Setting sustainability targets• Monitoring and assessing sustainability
activities• Raising awareness among officers andemployees

Report

JPR’s Board of
Directors

ReportTRIM’s Board of
Directors

Publication of JPR Sustainability
ReportJPR has started to issue the report for the
purpose of reporting to its stakeholders.

Frequency of meetings
Sustainability Committee:
At least twice a year
Secretariat for Sustainability:
Once a month as a rule

2. Signing of the Principles for Responsible Investment (PRI)The Principles for Responsible Investment (PRI) refers to the six principles aswell as the international network of investors established to realize theprinciples. PRI is promoted by the United Nations Environment Programme(UNEP) and the United Nations Global Compact (UNGC). TRIM became asignatory to PRI in May 2019, in agreement with its fundamental thinking.

3. Contributing to the SDGs
SDGs, or abbreviation of Sustainable Development Goals, represent theinternational goals through 2030, adopted by the United Nations Sustainable
Development Summit. In sympathy with the ideals of the SGs, JPR and
TRIM will contribute to achieving the goals through respective businessactivities.
Materialities for JPR and TRIM
Material
agendaInitiatives onbehalf of theenvironment

Initiatives on
disasterprevention

Increase energy
efficiency byrenewing facilities
and equipment, etc.

Construct a system
to address largescale natural
disasters affected byclimate change, etc.

Local community
initiatives

Development of
employeecapabilities

Initiatives on
tenant satisfaction

Support connectionsof people in cities
through various
local contribution
and welfare support
activities.

Work to cultivate
human resources tofacilitate thepersonal development of TRIM
employees.

Aim to contribute toeconomic growththrough the provision of office spacesthat satisfy tenants.

Respect to humanrightsGoals of SDGs

Description ofcontributions

8

Endeavor topromote respect forhuman rights,
prohibit the acts of
discrimination andharassment, andsecure a pleasantwork environment.

Japan Prime Realty Investment Corporation

Initiatives on Environmental Friendliness
Recognizing the importance of addressing environmental issues, JPR strives to reduce its environmental footprint by
upgrading facilities and improving operation at the properties it owns.

1. Environmental Target
JPR is endeavoring on energy saving and reduction of CO2 emissions, under its environmental target of “reducing atleast 5% of its energy consumption intensity and CO2 emission intensity in five years from 2017.”

2. Introduction of Green Lease Arrangement
A green lease arrangement is an initiative in which both the owner and the tenants of a building agree to promote
environmental awareness through the lease agreement of the building.
JPR has established green lease clauses in the lease agreement to be newly concluded, and works to reduce its
environmental footprint in cooperation with the tenants.
Case of green lease arrangement

Niigata Ekinan Center Bldg.

For Niigata Ekinan Center Bldg., JPR has concluded green lease agreements with tenants who are highly
conscious of environmental friendliness. The major points in concluding the agreements are as follows:•Reducing costs and CO2 emissions by replacing lighting equipment with LED lamps•Enhancing the quality of the property through reduction of environmental footprint•Addressing the needs of the tenant who is highly conscious of environmental friendlinessInitiatives on Social Awareness
JPR and TRIM, the Asset Manager, are related with a variety of stakeholders that include, on top of the unitholders,
the lenders, tenants, local communities, property management companies and the employees of TRIM. We areresolved to conduct business with a strong sense of integrity and responsibility, in order to build a good relationshipwith the stakeholders over a long term.

■■ Initiatives on Behalf of Tenants
Realizing better customer satisfaction (CS) of tenants is an important theme for stabilizing cash distributions, as itleads to stable occupancy over a long term and reduced risks of contract cancellation by tenants. JPR conducts avariety of initiatives, considering that it is the quickest way for enhanced CS to directly listen to the requests andopinions of tenants and users and reflect them to its facilities and services.

Betterment of Tenant Services
JPR has established the “JPR
Performance Award” based on the
CS survey results andrecommendations from property
managers, etc. to commend building
managers exhibiting outstanding
levels of management services and torecognize them as model building
managers for others to follow.

JPR Best Performance Award 2019AwardeeJPR Ichigaya Bldg. Management Office, Tokyo Real EstateManagement Co., Ltd.

Reason for award•Exerts high coordination capabilities amid refurbishment
works for tenant replacement for store portions and tenant
move-outs taking place simultaneously
JPR Ichigaya Bldg.
•Always works to establish a good relationship with thetenants, and highly evaluated continuously in the CS survey•Evaluated the fact that the awardee serves as a model for other properties as it
meticulously conducts maintenance operations of facilities and equipment

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

■■ Merits of Having Diversified Sponsors and Monitoring of Operations
Shareholder Composition of TRIM❚❚ The five sponsors that are active in the respective areas
provide properties, human resources, information andother support by taking advantage of their respective
strengths.

Real estate
Real estate❚❚ Each sponsor exercises its monitoring function, from avariety of perspectives, on the business operations of
the investment corporation.

Yasuda Real Estate

Shareholding ratio:

Shareholding ratio:

18%

Shareholding ratio:

Meiji Yasuda Life Insurance

Shareholding ratio:❚❚ In particular, material transaction matters conductedwith the sponsors, etc. are screened and verified by theCompliance Committee as to their adequacy andrationality. The Committee employs a unanimous votefor approvals in principle.
❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.

10%Sompo Japan Nipponkoa Insurance Inc.

(Asset Manager)
Tokyo Realty Investment
Management, Inc.

Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

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

President and CEO

Decision making on acquisition
over certain amountSpecial member (outside attorney)

10%

Shareholding ratio:

Proposal, planning

Members of the Compliance Committee of TRIM

Compliance Officegeneral manager

Compliance Committee /JPR’s Board of Directors
Investment Subcommittee
TRIM’s Board of Directors

Conclude agreement

Acquisition

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

■■ Risk Management❚❚ JPR and TRIM has established an effective risk management
system, and endeavor to avoid occurrence of risks related toinvestment management and address risks in case they occur.
❚❚ In order to enhance and reinforce risk management activities,
JPR and TRIM continuously work to identify, assess andrespond to risks and monitor and improve the situation.
❚❚ In conducting information management, TRIM implements
safety measures against various threats and has prepared
contingency plans to prepare for failures, etc.

10

10%

Stringent Decision-Making Process(for property acquisitions)❚❚ Upon making decisions on property acquisitions, asset
management and other issues, TRIM conducts
stringent screening and takes other procedures fromvarious perspectives through designated committees
and other institutions.

Financial Division
general manager

Taisei Corporation

Finance■■ Decision Making Based on Stringent Processes

Investment Management Division
general manager

52%

Finance❚❚ The Compliance Office general manager that is the headof the department in charge of internal control at TRIM
is not seconded from any of the sponsor companies.

Corporate Planning / Administration
Division general manager

Construction

Tokyo Tatemono

TRIM’s Risk Response Scheme
Identify risks

Improve thesituation

Monitor thesituation

Assess risks

Respond to risks

Japan Prime Realty Investment Corporation

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

1. Acquisition of 5 Stars, the Highest Rank, in the GRESB Real Estate Assessment
The 2019 GRESB Real Estate Assessment acknowledged JPR’s superiority
both in the “Management & Policy” and “Implementation & Measurement”
dimensions, and designated JPR as “Green Star” for the sixth consecutive
year. JPR was also granted the highest rank of “5 Stars” in the GRESB
Rating, which makes relative assessments in five ranks based on total scores.
In addition, JPR received an “A” mark, the highest ranking, in the GRESB
Public Disclosure (Evaluation of ESG Disclosure Level).

2. Acquisition of Assessment in CASBEE for Building Certification
CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for comprehensively
assessing and ranking the environmental performance of buildings with regard to aspects such as the enhancement ofenvironmental quality and performance including indoor comfort and consideration for the landscape, on top of the
aspect of environmental consideration such as energy saving and the use of materials and equipment with a lower
environmental burden. JPR has acquired the assessment for seven properties in total.
In December 2019, JPR Kojimachi Bldg. and FUNDES
Ueno acquired the highest “S” rank.

Properties certified by CASBEE (7 properties)

JPR Kojimachi Bldg.

FUNDES Ueno

RatingPropertyS

JPR Kojimachi Bldg., FUNDES Ueno,
Musashiurawa Shopping Square, JPR Umeda Loft
Bldg., Housing Design Center KobeA

JPR Shibuya Tower Records Bldg., Yakuin Business
Garden3. Acquisition of DBJ Green Building Certification
The DBJ Green Building Certification is a certification system established by Development Bank of Japan Inc.,
designed to promote and popularize real estate properties that are environmentally friendly and equipped to mitigate
disaster and prevent crime, as well as meet the social requirements from various stakeholders. JPR has acquired theCertification for 16 properties in total.
RatingProperty★★★★★

Tokyo Square Garden, Olinas Tower★★★★

Oval Court Ohsaki Mark West, Shinjuku Center Bldg., JPR Sendagaya
Bldg.

★★★

Kanematsu Bldg., BYGS Shinjuku Bldg., Shinagawa Canal Bldg., Omiya
Prime East, Rise Arena Bldg., Yume-ooka Office Tower, Kawasaki Dice Bldg.

★★

JPR Crest Takebashi Bldg., Shinjuku Square Tower, Minami Azabu Bldg.,
JPR Chiba Bldg.

11

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

Target investment ratio by area

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

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

Asset Size Expansion Trends(billion yen)

450

Office properties in Tokyo

Office properties in Other Cities

Retail properties, etc.

439.5

400
350
300
250
200
150
100
50
0

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

(Note) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.

Changes in Investment Ratios by Area and by Asset ClassAs a result of focused investments in office properties in Tokyo, the investment ratio of office properties in Tokyo stoodat 66.8% as of the end of the 36th fiscal period, up 23.3% compared with the 43.5% as of the end of the 1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 36th Fiscal Period (December 31, 2019)

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

Office in
Tokyo
43.5%

Retail, etc.
in Tokyo
14.4%+23.3%

Retail, etc. in
Other Cities
6.0%
Office in
Other Cities
9.3%
Retail, etc.
in Tokyo
17.9%

Officein Tokyo

66.8%(Note) The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

12

Japan Prime Realty Investment Corporation

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

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

10

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

Office properties
in Central Tokyo

Office properties
in Greater Tokyo

83.9 billion yen
5.7%

5

209.7 billion yen
4.1%

Office properties
in Other Cities

41.0 billion yen
5.9%

Retail properties, etc.

104.7 billion yen
4.7%

Portfolio average

4.7%

0(Note 1) Asset size (based on acquisition price) refers to the total acquisition price of properties (limited to those owned at the end of the fiscal period) belonging to each category.
(Note 2) N
 OI yield (based on acquisition price; annualized) refers to the yield of NOI* in each category, annualized in accordance with the number of operating days of properties (including thoseacquired or sold in the fiscal period) in the relevant category (the average number of operating days weighted by acquisition price). Figures are rounded to the first decimal place.
*NOI = Real estate rental revenues - real estate rental expenses + depreciation

Status of Tenant Diversification (ratio of tenant occupancy of 1% or more)
If the ratio of occupancy (ratio of occupied floor space in the portfolio) by a single tenant is low, it reduces the risk oflower revenue when the tenant cancels a contract in the future. JPR keeps the ratio low to enhance the stability ofrevenue.
1% or more by sponsors, etc.
1 tenant / 1.6%

1% or more by other tenants(except for sponsors, etc. and tenants ofretail properties, etc.)
4 tenants / 4.6%
Number of tenants
Less than 1%

747 tenants / 65.7%760

companies

1% or more by tenants of retailproperties, etc.

8 tenants / 28.0%(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees, which shows the diversification status in effect, when the tenant subleases the relevant property to sublessees (end tenants), etc. andthe leasing terms and conditions vary in accordance with the situation of subleasing. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If theleased rooms are in multiple buildings, the tenant is counted in plural.

13

Overview of Portfolio Properties
List of Properties (63 Properties for the Entire Portfolio)
Central Tokyo (31 Properties)
AcquisitionPrice(in millions)Leasable
Percentage ofPortfolio Acquisition Floor Space(m2)
Price (%)

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

Dec. 27, 2001
Dec. 27, 2001
Nov. 16, 2001
Nov. 16, 2001
Nov. 21, 2002
Nov. 12, 2004
Total
Jun. 21, 2002
Mar. 28, 2003
Jul. 23, 2003
May 28, 2004
Jun. 1, 2004
Jul. 2, 2004
Sep. 26, 2008
Mar. 25, 2015
Oct. 21, 2015
Total
Nov. 9, 2004
Apr. 12, 2005
Jul. 13, 2010
Total
Nov. 26, 2004
Mar. 27, 2008
Jul. 14, 2008
Dec. 19, 2008
Mar. 8, 2019
Total
Dec. 2, 2009
Dec. 25, 2009
Mar. 31, 2010
May 31, 2010
Aug. 29, 2011¥16,276
2,874
2,100
1,670
550
200
2,420
4,000
11,200
2,920
5,100
3,500
10,000
180
4,000
786
14,966
2,900
8,921
3,300
15,121710
21,000
3,760
1,870
171
2,041
2,800
8,400
5,100
15,0503,400

3.7 8,090.42
0.7 2,291.13
0.5 2,802.22
0.4
0.1
3,319.37
0.0
0.6
0.9 3,265.34
2.5 14,468.38
0.7 4,241.22
1.2 4,240.37
0.8 4,088.44
2.3
0.0
0.9 19,266.38
0.2
3.4
0.7
2.0
15,227.80
0.8
3.4
0.2 1,253.39
4.8 8,865.71
0.9 3,405.73
0.4
0.0 1,870.50
0.5
0.6 2,488.36
1.9 4,761.51
1.2 5,299.88
3.4 6,177.74
0.8 1,896.69

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.2 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo
Minato-ku, Tokyo

5,401.46

5.6

A-26

Tokyo Square Garden

Chuo-ku, Tokyo

0.6
0.8
0.2
1.0
2.1
2.1
4.2

3.1

Shibadaimon Center Bldg.

2,660
3,420
800
4,220
9,200
9,200
18,4003,325.29

A-25

Dec. 6, 2013
Dec. 6, 2013
Jul. 30, 2014
Total
Feb. 1, 2017
Apr. 4, 2017
Total

5,971.73

2.6

A-27

JPR Kojimachi Bldg. (Note 4)

A-1
A-3

JPR Shibuya Tower Records Bldg.
JPR Jingumae 432

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

1.3
2.7
1.0
0.1
0.5
0.6

3.3
5.8
5.4

Shinjuku Sanchome East Bldg.

5,750
12,000
4,275
540
2,200
2,740

3,493.67
8,076.85
1,027.33

A-4

Jun. 27, 2019
Jun. 30, 2003
Mar. 24, 2006
Mar. 14, 2007
Apr. 24, 2008
Total

2,347.81

1.6

A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo

Aug. 27, 2008

3,400

0.8

1,101.92

3.0

A-6
A-7

JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi

Chuo-ku, Tokyo
Chiyoda-ku, Tokyo

Dec. 15, 2016
Dec. 15, 2016

10,100
3,250

2.3
0.7

1,665.79
1,367.56

6.8
6.5

55.9 162,134.77—

Property
NumberOfficeRetail,etc.

Property Name

Location

A-1
A-2
A-3

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

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

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

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

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

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

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

A-13
A-14
A-15

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

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

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

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

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

A-23

Subtotal

14

Acquisition Date

¥245,533

PML (%)

3.9
5.8
3.7

4.4

7.8
6.8
7.3
4.9
3.5

1.3

3.1

4.7
1.3
6.0
5.3
7.7
6.8
5.0
2.6
4.5

Japan Prime Realty Investment Corporation

Greater Tokyo (18 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,8801.3

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.5

5,539.12

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,079.74

6.7

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

10.5

1,490

0.3

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

1.8 15,503.27

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.7

6,454.84

3.9

Sep. 30, 2005

888

0.2

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

2,300

0.5

4,588.89

4.1

3,188

0.7

Total

Retail,etc.

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

B-1

Total

OfficeAcquisitionPrice(in millions)

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.3

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.5 12,000.08

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,3007.1 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.6

6,493.99

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.4

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.3 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,254

1.7 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.0 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,080

3.4 12,070.15

5.9

B-7

FUNDES Ueno

Taito-ku, Tokyo

Jun. 27, 2019

3,800

0.9

1,989.66

4.3¥126,685

28.8 191,695.84—

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

PML (%)

Subtotal

Other Cities (14 Properties)
Property
NumberOfficeRetail,etc.

Property Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,327.50

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

0.9

7,150.22

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,577.26

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,944.98

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.7

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,876.71

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.6

3,257.72

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,918.28

5.0

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

0.9

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.5 16,654.33

1.6

C-21

JPR Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.2

4,021.53

11.5

May 15, 2003

8,000

1.8

Jul. 16, 2003

5,000

1.1 18,586.97

4.3

Total

13,0003.0

7,220

1.6 35,444.13

7.2

1.4

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

2,478.42

8.4

Subtotal¥67,3036,000

15.3 126,453.56

—

Total

¥439,521

100.0 480.284.17

2.0(Note 1) The table above shows properties owned by JPR as of December 31, 2019.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the ownership interest held by JPR.
(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Risk Management Inc., rounded down to the first decimal place.
(Note 4) The property was renamed from KY Kojimachi Bldg. to JPR Kojimachi Bldg. as of January 1, 2020.

15

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-12
A-4

A-7
A-9
A-24
A-4

A-17
A-27

A-23

Tokyo

A-3
A-1 A-2
A-26

Harajuku

A-5

A-3
Shinbashi

A-18

A-1

Sobu Line

A-20

ChiyodaWard

A-21
Shibuya Ward

A-5

Ichigaya

A-6

A-25

ShibuyaA-13
Keiyo Line

A-22
Chuo Ward

Minato Ward

Hamamatsucho

Tamachi
Yamanote Line

A-15

GotandaShinagawaA-7

Shinagawa Ward

A-6
A-16

A-10
Osaki

Tokaido Shinkansen
Yokosuka Line

Keihin Tohoku Line
Tokaido Main Line

Office
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-9
● A-10● A-11● A-12● A-13● A-14● A-15RetailKanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

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

A Central Tokyo
Chiyoda Ward
Chuo Ward

16

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

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

■ A-1
■ A-3
■ A-4
■ A-5
■ A-6
■ A-7

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

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

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

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main LineB-7 B-7

Ueno

Funabashi
Kinshicho

Tokyo

Shinjuku

Tachikawa

B-11
B-1 Sobu Main Line

Keiyo Line

ShibuyaNambu Line

Chiba

Shinagawa

B-2

■ B-1
■ B-3
■ B-4
■ B-5

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

Musashikosugi

KANAGAWA

B-4

Yokohama Line

Tokaido Shinkansen

Musashikosugi
Tokaido Main Line
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

RetailUchibo Line

B-3

Kamiooka

C Other Cities
Office● C-1 Niigata Ekinan Center Bldg.
● C-4 Tokyo Tatemono Honmachi Bldg.
● C-7 JPR Hakata Bldg.
● C-9 JPR Naha Bldg.
● C-12 Sompo Japan Sendai Bldg.
● C-13 Sompo Japan Wakayama Bldg.
● C-14 Tenjin 121 Bldg.
● C-17 JPR Dojima Bldg.
● C-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden● C-21 JPR Shinsaibashi Bldg.

OSAKA

Retail
■ C-1
■ C-4
■ C-5

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

C-7
C-14
C-20

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

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
NAHA

C-9

WAKAYAMA

C-13

17

Properties Owned by JPR
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,874 million
679.06 m2

Total Floor Space
Structure/Floors
Completed

4,351.46 m2
SRC B1/8F
February 1993

Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area

550.06 m2

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

Total Floor Space

14,995.09 m

Structure/Floors
Completed

CompletedFebruary 1993

A-5

Chiyoda Ward, Tokyo

Acquisition Price
Site Area

Structure/Floors
Completed

Chiyoda Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

5,152.98 m2

Structure/Floors

SRC B1/9F

Completed

October 1984

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

Total Floor Space
Structure/Floors
Completed
Property Manager

February 1988

Tokyo Tatemono Co., Ltd.

18

Shinagawa Ward, Tokyo

Acquisition Price
Site Area

SRC/RC/S B2/13F

September 1999

Gotanda First Bldg.

¥2,920 million
1,551.19 m2

2

31,020.21 m2

SRC B1/9F

Tokyo Tatemono Co., Ltd.

A-7

Minato Ward, Tokyo

4,790.68 m2

Property Manager

Tokyo Tatemono Co., Ltd.

MS Shibaura Bldg.

¥4,000 million
636.90 m2

2

Property Manager

A-6

December 1989

JPR Crest Takebashi Bldg.

¥2,420 million
657.80 m

Total Floor Space

SRC/RC B1/8F

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

4,117.70 m2

Property Manager

Property Manager

2

A-4

Structure/Floors

S/RC/SRC B2/13F¥2,100 million

Total Floor Space
Structure/Floors
Completed
Property Manager

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

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-9

OfficeRetailJPR Ichigaya Bldg.

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

Chiyoda Ward, Tokyo

Acquisition Price¥5,100 million

Site Area

1,058.04 m2

Total Floor Space

5,888.82 m2

Structure/Floors

SRC B1/9F

Completed

March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥3,500 million
4,006.00 m2

Structure/Floors
Completed

S/SRC B2/17F
June 2001

Property Manager

28,575.80 m

Tokyo Tatemono Co., Ltd.

2

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

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

78,796.00 m2

Structure/Floors

S/RC/SRC B4/30F

Completed

October 1994
Property Manager

Tokyo Tatemono Co., Ltd.

(entire redevelopment project)

Shinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo
Acquisition Price
Site Area¥710 million
858.48 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

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

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space¥15,121 million
3,522.46 m2

Structure/Floors
Completed

SRC B2/14F
April 1985

25,733.10 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

19

Properties Owned by JPR
Central Tokyo

OfficeRetailCenter Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo

Azabu Bldg.
A-15 Minami
Minato Ward, Tokyo
Acquisition Price
Site Area¥3,760 million
778.09 m2

Total Floor Space
Structure/Floors
Completed

4,570.63 m2
S 9F
June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo
Acquisition Price
Site Area

828.82 m2

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

Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

Tokyo Tatemono Co., Ltd.

2

Bldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo

Structure/Floors
Completed

5,216.21 m2
S B1/8F
July 2008

Property Manager

Tokyo Tatemono Co., Ltd.

Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥2,800 million
716.95 m

Total Floor Space
Structure/Floors
Completed

Site Area

4,205.09 m2
SRC B3/7F
October 1991

Tokyo Tatemono Co., Ltd.

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

Structure/Floors
Completed
Property Manager¥8,400 million
1,205.07 m2

Total Floor Space
Structure/Floors
Completed

6,466.94 m2
SRC B1/9F
March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

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

Total Floor Space

Acquisition Price2

Property Manager

Acquisition Price
Site Area

7,190.82 m2
S/RC B1/9F
June 2002¥15,050 million
2,217.49 m2

2

Tokyo Tatemono Co., Ltd.

20

¥2,041 million

Total Floor Space
Structure/Floors
Completed
Property Manager

7,683.19 m2
S 8F
May 2009

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailSanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

Otemachi Tower (Land with Leasehold Interest)
A-23 The
Chiyoda Ward, Tokyo

Acquisition Price¥3,400 million

Site Area

1,119.27 m2

Total Floor Space

8,851.00 m2

Structure/Floors

SRC B2/9F

Completed

October 1982

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥2,660 million
5,289.01 m2

Total Floor Space
Structure/Floors
Completed

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

Acquisition Price
Site Area

Center Bldg.
A-25 Shibadaimon
Minato Ward, Tokyo
Acquisition Price
Site Area

Structure/Floors
Completed

11,034.78 m

2

Total Floor Space

Property Manager

Nomura Real Estate Partners Co., Ltd.

¥36,000 million–

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

Square Garden
A-26 Tokyo
Chuo Ward, Tokyo

¥4,220 million
1,915.50 m2

Total Floor Space
Structure/Floors
Completed

11,419.93 m2
S/SRC B1/10F
July 1993

Property Manager

Nomura Real Estate Partners Co., Ltd.

Kojimachi Bldg.
A-27 JPR
Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥5,750 million
643.13 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

4,438.46 m2
S B1/9F
February 1999

Tokyo Tatemono Co., Ltd.

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

Structure/Floors
Completed

S/SRC B4/24F
February 2013

112,645.83 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

21

Properties Owned by JPR
Central Tokyo
A-1

OfficeRetailJPR Shibuya Tower Records Bldg.
Shibuya Ward, Tokyo

A-3

JPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price¥4,275 million

Site Area

198.10 m2

Total Floor Space

1,066.81 m2

Structure/Floors

S/SRC B1/7F

CompletedFebruary 2006

Property Manager

Jones Lang LaSalle K.K.

A-4

Shinjuku Sanchome East Bldg.
Shinjuku Ward, Tokyo
Acquisition Price
Site Area

2,578.69 m2

Total Floor Space

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

Total Floor Space

8,449.56 m2

Structure/Floors
Completed

Structure/Floors

SRC/S B3/8F

CompletedFebruary 1992

Property Manager

Chiyoda Ward, Tokyo

S/SRC/RC B3/14F
January 2007

Prime Place Co., Ltd. (Note)

Prime Place Co., Ltd. (Note)

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

24,617.65 m2

Property Manager(Note) Changed from Tokyo Tatemono Co., Ltd.
as of October 1, 2019.

(Note) Changed from Tokyo Tatemono Co., Ltd. as of October 1, 2019.

A-5¥2,740 million

A-6

JPR Ginza Namiki-dori Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area¥10,100 million
230.11 m2

Total Floor Space
Structure/Floors
Completed

1,821.67 m2
S 11F
June 2008

Property Manager

Prime Place Co., Ltd.

A-7

FUNDES Suidobashi
Chiyoda Ward, Tokyo

Acquisition Price
Site Area

281.59 m2

Total Floor Space
Acquisition Price
Site Area¥3,400 million
6,808.12 m

Structure/Floors
Completed2

Total Floor Space

71,957.65 m

2Property Manager(Note) Changed from Tokyo Tatemono Co., Ltd. as of October 1, 2019.

22

S/SRC B4/20F

Structure/Floors

October 2007

Completed

Prime Place Co., Ltd. (Note)¥3,250 million

1,477.91 m2
S 9F
July 2015

Property Manager

Prime Place Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-1

OfficeRetailArca East

B-2

Sumida Ward, TokyoJPR Chiba Bldg.
Chiba City, Chiba

Acquisition Price¥2,350 million

Site Area

1,382.35 m2

Total Floor Space
Structure/Floors
Completed

9,072.57 m2
S/SRC B1/13F
January 1991

Property Manager

Jones Lang LaSalle K.K.

B-3

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price
Site Area

1,100.59 m2

Total Floor Space
Acquisition Price
Site Area

3,755.01 m2

Total Floor Space

B-5¥5,880 million

34,281.86 m

Structure/Floors

Structure/Floors

S/SRC B3/19F

Completed

Completed

March 1997

Property Manager

Shinyokohama 2nd Center Bldg.

Acquisition Price
Site Area

SRC B1/11F
October 1989

Tokyo Tatemono Co., Ltd.

B-6

Yokohama City, Kanagawa

9,146.52 m2

Property Manager

Tokyo Tatemono Co., Ltd.

2¥2,927 million

Kawaguchi Center Bldg.
Kawaguchi City, Saitama¥1,490 million
841.71 m2

Total Floor Space
Structure/Floors
Completed

7,781.93 m2
S/SRC B2/12F
August 1991

Property Manager

Nomura Real Estate Partners Co., Ltd.

B-7

JPR Ueno East Bldg.
Taito Ward, Tokyo

Acquisition Price
Site Area¥3,250 million
1,242.97 m2

Total Floor Space
Structure/Floors
Completed

8,490.44 m2
S/SRC B1/8F
October 1992

Property Manager

Jones Lang LaSalle K.K.

Acquisition Price
Site Area
Total Floor Space

¥8,100 million
4,524.61 m2

Structure/Floors
Completed

S/SRC B2/15F
February 1994

28,420.85 m

Property Manager
2

Nomura Real Estate Partners Co., Ltd.

23

Properties Owned by JPR
Greater Tokyo
B-8

OfficeRetailTachikawa Business Center Bldg.

B-9

Tachikawa City, Tokyo

Acquisition Price

Rise Arena Bldg.
Toshima Ward, Tokyo

¥3,188 million

Site Area

2,047.22 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

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

Acquisition Price
Site Area¥5,831 million
9,377.28 m2(entire redevelopment project)
Total Floor Space

91,280.94 m

Structure/Floors

RC/SRC/S B3/42F (Note)

Completed

January 2007
Property Manager

2(including residential tower)

Taisei-Yuraku Real Estate Co., Ltd.

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

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

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

Structure/Floors

S/SRC/RC B3/27F

Completed

March 1997

Property Manager

Tokyo Tatemono Co., Ltd.

2

Tatemono Yokohama Bldg.
B-12 Tokyo
Yokohama City, Kanagawa
Acquisition Price
Site Area¥7,000 million
1,110.28 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

8,772.51 m2

Acquisition Price

SRC B1/9F

Site Area

May 1981

Tokyo Tatemono Co., Ltd.

24

¥31,300 million

27,335.29 m2 (entire site area)

Total Floor Space

Structure/Floors

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

CompletedFebruary 2006

257,842.41 m

Property Manager
2(includes commercial tower and residential tower)

Tokyo Tatemono Co., Ltd.

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

Japan Prime Realty Investment Corporation

Greater Tokyo

OfficeRetailPrime East
B-13 Omiya
Saitama City, Saitama

B-1

Tanashi ASTA
Nishitokyo City, Tokyo
Acquisition Price

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed

Site Area¥6,090 million

Total Floor Space

9,203.98 m2

Structure/Floors
Completed

Acquisition Price

JPR Musashikosugi Bldg.
Kawasaki City, Kanagawa¥2,100 million

Site Area

Acquisition Price

15,008.28 m2

Site Area
Total Floor Space

Structure/Floors

Structure/Floors

48,321.96 m2

S/RC/SRC B2/10F

Completed

January 2006

18,394.32 m2
SRC/RC/S B1/6F
March 1983

Property Manager

Property Manager(Note) Changed from Tokyo Tatemono Co., Ltd.
as of October 1, 2019.

(Note) Changed from Tokyo Tatemono Co., Ltd.
as of October 1, 2019.

Prime Place Co., Ltd. (Note)

B-5¥7,254 million
4,757.09 m2(entire redevelopment project)
Total Floor Space

CompletedFebruary 1995

(Note) Changed from Tokyo Tatemono Co., Ltd.
as of October 1, 2019.

B-4

Kawaguchi City, Saitama

SRC B2/17F

Prime Place Co., Ltd. (Note)

Tokyo Tatemono Co., Ltd.

Cupo-la Main Bldg.

80,675.27 m2

Property Manager

February 2009

Property Manager

B-3

12,326.30 m2

2,268.09 m2

S 9F¥10,200 million

Musashiurawa Shopping Square

B-6

Saitama City, Saitama
Acquisition Price
Site Area

Prime Place Co., Ltd. (Note)

Kawasaki Dice Bldg.
Kawasaki City, Kanagawa¥4,335 million
8,317.99 m2

Total Floor Space
Structure/Floors
Completed

28,930.36 m2
S B1/4F
October 2005

Property Manager

Geo-Akamatsu Co., Ltd.
Prime Place Co., Ltd. (Note)(Note) Changed from Tokyo Tatemono Co., Ltd. as of October 1, 2019.

B-7

FUNDES Ueno
Taito Ward, Tokyo

Acquisition Price
Site Area¥3,800 million
383.74 m2

Total Floor Space
Structure/Floors
Completed

2,235.60 m2
S B1/10F
July 2017

Property Manager

Prime Place Co., Ltd.

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

Structure/Floors
Completed

S/SRC/RC B2/11F
August 2003

36,902.01 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

25

Properties Owned by JPR
Other Cities
C-1

OfficeRetailNiigata Ekinan Center Bldg.

C-4

Niigata City, Niigata

Acquisition Price
Site Area

Structure/Floors
Completed

Osaka City, Osaka

Acquisition Price¥2,140 million
2,706.99 m

Total Floor SpaceTokyo Tatemono Honmachi Bldg.

Site Area
Total Floor Space

19,950.42 m2

Structure/Floors

S/SRC B1/10F

Completed

March 1996

Property Manager

JPR Hakata Bldg.
Acquisition Price
Site Area
Total Floor Space
Structure/Floors

Naha City, Okinawa

Acquisition Price2

Site Area
Total Floor Space

S/SRC B1/12F

Structure/Floors

Completed

June 1985
expansion in November 2003

Completed

Property Manager

Site Area

Structure/Floors
Completed

October 1991

Tokyo Tatemono Co., Ltd.

Acquisition Price¥3,150 million

Site Area
Total Floor Space

10,783.52 m2

Structure/Floors

SRC B1/12F

Completed

December 1997

6,715.07 m2
S 9F
July 1996

Property Manager

Tokyo Tatemono Co., Ltd.

121 Bldg.
C-14 Tenjin
Fukuoka City, Fukuoka¥1,670 million
1,128.45 m2

2

Property Manager

Tokyo Tatemono Co., Ltd.

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price
Site Area¥2,810 million
1,164.39 m

Total Floor Space
Structure/Floors
Completed
Property Manager

Acquisition Price
Site Area

8,690.95 m2
S/SRC 13F
July 2000¥2,140 million
668.11 m2

2

Tokyo Tatemono Co., Ltd.

26

SRC/S 12F

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

1,895.67 m

Total Floor Space

5,780.71 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Acquisition Price¥1,560 million
959.87 m2

9,828.73 m2

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

February 1970

JPR Naha Bldg.

¥2,900 million
1,214.63 m

SRC B3/9F

Tokyo Tatemono Co., Ltd.

C-9

Fukuoka City, Fukuoka

14,619.52 m2

Property Manager

Jones Lang LaSalle K.K.

C-7

¥4,150 million
1,432.64 m2

2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,696.01 m2
SRC B2/9F
October 1993

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

OfficeRetailNagoya Fushimi Bldg.
C-19 JPR
Nagoya City, Aichi
Acquisition Price
Site Area

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka¥4,137 million
1,610.38 m2

Total Floor Space
Structure/Floors
Completed

10,201.44 m2
SRC B1/9F
March 1991

Property Manager

Tokyo Tatemono Co., Ltd.

Shinsaibashi Bldg.
C-21 JPR
Osaka City, Osaka
Acquisition Price
Site Area¥5,430 million
609.31 m2

Total Floor Space
Structure/Floors

5,303.98 m2
S B2/10F

Acquisition Price

CompletedFebruary 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

C-1

JPR Umeda Loft Bldg.

Site Area

4,486.44 m2

Total Floor Space

Structure/Floors
Completed

SRC 14F
January 2009

22,286.35 m

Property Manager

Tokyo Tatemono Co., Ltd.

2

C-4

Osaka City, Osaka¥10,996 million

Housing Design Center Kobe
Kobe City, Hyogo

Acquisition Price
Site Area
Total Floor Space
Structure/Floors
Completed¥7,220 million
3,994.47 m2
33,877.71 m2
SRC/S B2/11F
June 1994

Property Manager

Nomura Real Estate Partners Co., Ltd.

C-5

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area
Total Floor Space
Acquisition Price
Site Area
Total Floor Space

¥13,000 million
3,518.68 m2
17,897.56 m

Structure/Floors
Completed
Property Manager

2

SRC B1/8F
April 1990

Nomura Real Estate Partners Co., Ltd.

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

Property Manager

Nomura Real Estate Partners Co., Ltd.

27

Structure and History of JPR
The Objective and Basic Characteristics of JPR (as of December 31, 2019)
With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties (urban retailproperties) located in thriving commercial areas, hotels (urban accommodation facilities) (urban retail properties
and urban accommodation facilities referred together as “urban retail properties, etc.”) and urban multi-use
facilities, and the land on which these buildings are located. In addition, in light of the returns and risks of theseinvestment targets, JPR shall make it a basic policy to invest not only in Tokyo, but also strive to diversify into otherregional cities so as to maximize the advantages of portfolio management.

Corporate History
Date

Description

September 6, 2001
September 14, 2001
November 16, 2001
January 22, 2002
June 14, 2002

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

Structure of JPR
52%

18%

10%

10%

10%

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda Life Insurance

Equity Investment
Asset Manager

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

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

Investment Corporation
Japan Prime Realty
Investment Corporation
Loans / Issue
of Investment
Corporation
Bonds

Asset
Management
Property

Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

28

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents

Cash
Distribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Lender / Investment
Corporation Bond Investor
Unitholders
Transaction
Unitholders

Japan Prime Realty Investment Corporation

Overview of Asset Manager
Overview
Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporations¥350 million
Tokyo Tatemono Co., Ltd. (52%)
Yasuda Real Estate Co., Ltd. (18%)
Taisei Corporation (10%)
Sompo Japan Nipponkoa Insurance Inc. (10%)
Meiji Yasuda Life Insurance Company (10%)

NameBusiness Description
Capitalization
Shareholder
Composition(Shareholding ratio)
Corporate History

April 28, 2000
October 13, 2000

EstablishedObtained license as real estate transaction agent (currently: No. (4) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act (Approval
Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts and Investment
Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note)
Applied for registration and submitted application form for financial instruments exchange business

March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

(Note) Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006)

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

Compliance Committee(Compliance Subcommittee)
Compliance OfficeFinancial DivisionCorporate Planning /Administration Division

Research Group
Asset
Asset
Asset
Asset
Investment Management Management Management EngineeringGroup
3 Group
1 Group
2 GroupGroup

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

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

29

Asset Management Report

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

Operating Revenue
Rent revenue – real estate

Million yen

32nd Fiscal
Period(Jul. 1, 2017 Dec. 31, 2017)15,141Million yen

15,141

15,204

15,652

15,695Gain on sale of real estate

Million yen

–

–

–

405

–

Million yen

7,572

7,869

8,066

8,147

8,320

Million yen

6,810

7,114

7,311

7,349

7,538

Million yen

7,569

7,335

7,586

7,954

7,684

Million yen

6,666

6,685

6,761

7,216

6,915

Million yen

6,665

6,686

6,760

7,216

6,914

Million yen

446,487446,297

447,157

452,366

453,467

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance

Fiscal Period

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

Unit

%

33rd Fiscal
Period(Jan. 1, 2018 Jun. 30, 2018)15,20434th Fiscal
Period(Jul. 1, 2018 Dec. 31, 2018)
15,65235th Fiscal
Period(Jan. 1, 2019 Jun. 30, 2019)16,10136th Fiscal
Period(Jul. 1, 2019 Dec. 31, 2019)
16,00516,005(+0.1)(-0.0)(+0.2)(+1.2)(+0.2)

Million yen

181,228

181,120

181,020

185,020

185,020

Million yen

238,619

238,638

238,712239,166

239,269(+0.0)(+0.0)(+0.0)(+0.2)(+0.0)

Million yen

231,653

231,653

231,653

231,653

231,653

Million yen

6,666

6,687

6,761

6,811

6,916

%

100.0

100.0

100.0

94.3

100.0

Units

923,000

923,000

923,000

923,000

923,000

Yen

258,525

258,546

258,626

259,118

259,230

Yen

7,223

7,245

7,326

7,380

7,493

Yen

7,223

7,245

7,326

7,380

7,493

Yen

–

–

–

–

–

%

1.5

1.5

1.5

1.6

1.5

%

3.0

3.0

3.0

3.2

3.0

%

2.8

2.8

2.8

3.0

2.9

%

5.5

5.7

5.6

6.1

5.7

238,611238,619

238,638

238,712239,166

53.4

53.5

53.4

52.9

52.8

(-0.0)(+0.0)(-0.1)(-0.5)(-0.1)

%

40.6

40.6

40.5

40.9

40.8

Times

11.2

11.6

12.0

12.5

13.2

Million yen

9,430

9,442

9,500

9,536

9,620

%

Million yen%

Million yen

842

812

794

760

731

Million yen

10,252

10,033

10,285

10,311

10,441

%

4.7

4.7

4.7

4.7

4.7

Million yen

9,627

8,887

9,158

8,986

8,858

%

4.4

4.1

4.2

4.1

4.0

62

62

62

63

63

745

747

747

757

760

m2

478,169.25

478,117.02

478,088.25

480,277.86

480,284.17

%

98.5

98.8

99.2

98.6

99.6

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

3030

Japan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (32nd fiscal period: ¥435.05 billion, 33rd fiscal period: ¥435.05 billion, 34th fiscal period: ¥435.05 billion,
35th fiscal period: ¥444.77 billion and 36th fiscal period: ¥439.52 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 32nd fiscal period: 184 days, 33rd fiscal period: 181 days,
34th fiscal period: 184 days, 35th fiscal period: 181 days and 36th fiscal period: 184 days.
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

(2) 36th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 923,000 units as of the end of the 36th fiscal period (December 31, 2019). JPR has assigned the asset management of its
portfolio to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize
unitholder value by efficiently managing the portfolio primarily comprising office properties and retail properties.
As of September 5, 2019, amendments were made to the Articles of Incorporation of JPR and the internal rules of TRIM (JPR
Asset Management Guidelines) in order to add hotels to the investment targets of JPR (hereinafter, retail properties and hotels
collectively referred to as “retail properties, etc.”).
2) Management Environment
Looking at the Japanese economy in the 36th fiscal period, although corporate earnings remained at a high level, exports andproduction were on a weak note and certain industries took a cautious stance on the business outlook, with a decrease in corporate
earnings in some areas mainly in the manufacturing industry. Meanwhile, capital investment kept a modest upward trend, andconsumer spending showed a pickup under the solid employment and income environment. As such, the Japanese economy
continued to witness a moderate recovery. The overseas economy also continued to stay on a mild recovery path, although politicaland economic risk factors including trade issues still exist nonetheless and the pace of recovery has somewhat slowed.
The Office Property Leasing Market
The supply and demand conditions in the office property leasing market remained tight as new demand for such positive
development as setting up new offices, expanding the office spaces and moving to better locations continued to be strong. The
upward trend of the rent levels for new contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
The need of tenants to open stores remained strong for urban retail properties which JPR targets for investment. Consumption by
inbound foreign tourists also remained largely stable and the leasing market for urban retail properties continued to stay in good
shape in good locations, such as Ginza, Omotesando and Shinsaibashi.
The For-Sale Real Estate Market
In the for-sale real estate market, investors remain highly willing to purchase properties while blue-chip properties, JPR’s
investment targets, are in short supply. With low-yield transactions continuing to prevail, the acquisition environment remains harsh.
Accordingly, investors continue to look for ways to effectively acquire properties, such as diversifying the target assets forinvestment and conducting asset replacement.
3) Portfolio Management Status
Acquisition of New Properties
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality of the portfolio and achieving stable growth of its earnings while
paying attention to balancing diversification of the portfolio, both in terms of location and asset type.
During the 36th fiscal period, JPR investigated possible investments primarily in office properties in the Tokyo area, but noacquisition was closed and completed. As of the end of December 31, 2019, the balance of JPR’s assets under management totaled
63 properties, or 439.5 billion yen on an acquisition price basis, with the total leasable floor space standing at 480,284 m2 and thenumber of tenants at 760.

3131

Asset Management Report

Operational Management of Portfolio
In the office property leasing market in the 36th fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving its
occupancy rate. As a result of these efforts, the occupancy rate at the end of the 36th fiscal period increased 1.0 points period-onperiod to 99.6%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with an aim to create spaces where the workers feelsatisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning systems andreplacement of lighting equipment with LED lamps, which are expected to be effective for the endeavor, at its multiple properties.
Moreover, as its initiatives on environmental issues, JPR has continuously obtained environmental certifications. As of December
31, 2019, JPR acquired the DBJ Green Building Certification*1 for 16 properties and the CASBEE for Building Certification *2 for
7 properties (including 2 newly certified properties). On top of these certifications JPR acquired, its endeavors on environmental
issues were so acknowledged that it was designated as “Green Star” in the GRESB*3 Real Estate Assessment (the survey conducted
in 2019), marking the sixth consecutive year of recognition with the highest ranking in the survey. JPR was also granted the highest
rank of “5 Stars” in the GRESB Rating, which makes relative assessment based on total scores.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on thescoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate
disaster and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental
performance of buildings. Efforts to develop and popularize the system in Japan are being made under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.
*3 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 60 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on lengthening the debt maturity and diversifying repayment dates,in an effort to make its financial base more solid and stronger against the backdrop of the favorable fund procurement environment
and low interest rates. In the 36th fiscal period, JPR borrowed 13.0 billion yen (excluding short-term debts) to fund the refinanceof interest-bearing debts that matured during the fiscal period. The average maturity of and the average interest on the new interestbearing debts stood at 8.4 years and 0.48%, respectively, in contrast to 6.5 years and 0.93% for the relevant interest-bearing debts
before refinancing.
As of the end of the 36th fiscal period, the balance of interest-bearing debts totaled 185.0 billion yen, with balance of borrowingsof 158.5 billion yen and balance of investment corporation bonds of 26.5 billion yen. The ratio of interest-bearing debt to total
assets (Note 1) was 40.8%, long-term and fixed interest-bearing debt ratio (Note 2) was 99.5%, average debt cost (Note 3) was
0.80% and average maturity (Note 4) was 4.6 years as of the end of the 36th fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial institutions.
The following represents the issuer ratings for JPR as of the end of the 36th fiscal period.
Details of Corporate Credit Ratings as of December 31, 2019
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

S & P Global Ratings Japan Inc.

Long-term: A (Stable)
Short-term: A-1(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 36th fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

32

32

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date

Number of Units
Outstanding

Event

Unitholders' Capital(millions of yen)

Remarks

Variation
45,700

Balance
870,700

Variation
17,472

Balance
209,516(Note 1)

June 16, 2015

Additional public offering

June 24, 2015

Third-party allotment

2,300

873,000

879

210,395(Note 2)January 24, 2017

Additional public offering

47,600920,600

20,237

230,632(Note 3)February 14, 2017

Third-party allotment

2,400

923,000

1,020

231,653(Note 4)(Note 1)

New investment units were issued through a public offering at 394,875 yen per unit (underwriting price of 382,320 yen per unit) to repay debts, etc.

(Note 2)

New investment units were issued through a third-party allotment at 382,320 yen per unit to repay debts, etc.

(Note 3)New investment units were issued through a public offering at 439,040 yen per unit (underwriting price of 425,152 yen per unit) to fund acquisition of new specificassets and partly repay debts.

(Note 4)

New investment units were issued through a third-party allotment at 425,152 yen per unit to fund acquisition of new specific assets and partly repay debts.

(4) Cash Distributions
With regard to the cash distributions of the 36th fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 35th fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result,the cash distribution per unit came to 7,493 yen for the 36th fiscal period.
(Thousands of yen unless otherwise indicated)
Fiscal Period

Unappropriated Retained Earnings at End of Period
Internal Reserves

32nd Fiscal
Period33rd Fiscal
Period34th Fiscal
Period35th Fiscal
Period36th Fiscal
Period(Jul. 1, 2017 Dec. 31, 2017)(Jan. 1, 2018 Jun. 30, 2018)(Jul. 1, 2018 –Dec. 31, 2018)(Jan. 1, 2019 Jun. 30, 2019)(Jul. 1, 2019 Dec. 31, 2019)

6,681,774

6,701,131

6,774,889

7,229,214

6,926,967

14,945

13,996

12,991

417,474

10,9286,666,829

6,687,135

6,761,898

6,811,740

6,916,039(Cash Distribution per Unit)(7,223 yen)

(7,245 yen)

(7,326 yen)

(7,380 yen)

(7,493 yen)

Total Cash Distributions from Net Income

6,666,829

6,687,135

6,761,898

6,811,740

6,916,039(Cash distribution from net income per unit)(7,223 yen)

(7,245 yen)

(7,326 yen)

(7,380 yen)

(7,493 yen)

–

–

–

–

–

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

–

–

–

–

–

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

–

–

–

–

–

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

Total Cash Distributions

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

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)3333

Asset Management Report(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy is anticipated to recover moderately, given continued improvements in the employment andincome environments and supported by the effects of various policies. However, attention should be paid to the outcome of trade issues,
uncertainty in overseas economies including the outlook of the Chinese economy and the U.K. withdrawal from the EU, fluctuationsin the financial and capital markets under the influence of the Western monetary policies, and the impact of the consumption tax rate
hike conducted in October 2019.
In the office property leasing market, new supply in the 23 wards of Tokyo is expected to increase in 2020. However, as leasing of
newly-constructed buildings continues to be strong, the market situation in general is likely to stay in good shape. In this regard, JPR
believes it will be able to fully enjoy the positive impact of the good market situation as it has focused on improving tenant satisfaction
through proactive implementation of value enhancement works and provision of elaborate management services. When conducting
real estate transactions in the for-sale real estate market that continues to appear overheated, it will become even more important todiscern the growth potential in earnings of respective properties. Considering the situation in which cap rates are decreasing in a lowinterest rate environment, it is required to firmly keep the attitude of vigorously selective investment for implementing real estate
investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve the quality of its portfolio
and enhance its growth potential and stability over the long term. Given the briskness in the office property leasing market, the forsale real estate market sees a decrease in purchase cap rate and expected cap rate levels. Moreover, with properties remaining inshort supply, there are deals closed at prices that have factored in lower cap rates and rent increases. However, JPR will fully
investigate the stability and growth potential of such properties when acquiring them. As for retail properties, etc., JPR will work
to invest in strictly selected blue-chip properties that can keep stable revenues at a certain level in order to complement the stabilityof earnings from the entire portfolio. JPR will strive to acquire new properties under reasonable terms by negotiating prices basedon detailed market studies and property due diligence in considering properties.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of the Asset Manager (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation, Sompo Japan
Nipponkoa Insurance Inc. and Meiji Yasuda Life Insurance Company), accurately following market trends and carefully researchinginvestment value, including the future potential of candidate properties.
Furthermore, JPR will also investigate asset replacement while taking into consideration the timing of implementation, in order toimprove the quality of its portfolio and enhance its growth potential over the long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and increase tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

3434

Japan Prime Realty Investment Corporation(6) Information Disclosure
Positioning the proactive voluntary disclosure of information as one of its key management policies, JPR voluntarily discloses
information believed to be useful to investment decisions, along with the information disclosure required by the Tokyo Stock Exchange
and set forth by laws and regulations, etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(http://www.jpr-reit.co.jp/en/) to provide expanded information including monthly occupancy rates of all properties in the portfolio andhistorical data, as well as offer information for retail investors and deliver video presentation on financial results sessions for securities
analysts.

(7) Significant Subsequent Events
Issuance of new investment units
JPR resolved at its Board of Directors meetings held on February 14, 2020 and February 26, 2020 to issue new investment units, as
outlined below. With payment completed on March 3, 2020, JPR issued the units under the following conditions. As a result of theissuance, unitholders’ capital stands at 247,860,796,100 yen with the number of investment units outstanding totaling 958,250 units asof the date of this document. Furthermore, with regard to the issuance of new investment units through third-party allotment that was
resolved on at the said Board of Directors meetings, the allottee notified JPR that it would not subscribe in whole the planned numberof units to be issued. Accordingly, the issuance of new investment units through third-party allotment was cancelled.
< Issuance of new investment units through public offering (primary offering)>
Number of new investment units issued:
35,250 units
Issue price (offer price):
474,810 yen per unit
Total issue price (total offer price):
16,737,052,500 yen
Paid-in amount (purchase price):
459,790 yen per unit
Total paid-in amount (total purchase price):
16,207,597,500 yen
Payment date:
March 3, 2020
<Reference Information>
Property Acquisition
After the settlement date, JPR acquired a property and concluded a purchase agreement to acquire another property, as described
below.
<Minami Semba Bldg.>
Property overview
Location:
Type of ownership:
Site area:
Total floor space:
Structure/floors:
Completed:
Number of tenants;
Total leasable floor space:
Total leased floor space:Occupancy rate:

11-28 Minamisemba 4-chome, Chuo-ku, Osaka (residential indication)
Land: Ownership
Building: Ownership
1,405.74 m2
7,738.47 m2
SRC with flat roof, B1/8F
September 1986
13
5,695.71 m2
5,692.56 m2
99.9%

Transaction terms and conditions
Purchase price:
3,750 million yen
Asset type:
Beneficiary interest
Acquisition date:
January 30, 2020
(Note) Number of tenants, total leasable floor space, total leased floor space and occupancy rate indicate the figures as of theacquisition date.
<Sencity Bldg.>
Property overview
Location:
Type of ownership:
Site area:
Total floor space:
Structure/floors:
Completed:
Number of tenants:
Total leasable floor space:

1000, Shinmachi, Chuo-ku, Chiba-shi, Chiba, etc. (residential indication)
Land: Ownership (co-ownership: 11.1%)
Building: Sectional ownership
20,054.15 m2 (equivalent to co-ownership interest: 2,226.85 m2）
158,663.55 m2 (floor space of the co-ownership to be acquired: 13,290.06 m2）
S/SRC with flat roof, B2/23F
April 1993
71 (Note 2)
13,212.98 m2 (Note 3)3535

Asset Management Report

Total leased floor space:Occupancy rate:

13,097.22 m2 (Note 3)
99.1%

Transaction terms and conditions
Purchase price:
13,870 million yen
Asset type:
Real estate
Contract date:February 14, 2020
Planned acquisition date:
March 27, 2020
(Note 1) Number of tenants, total leasable floor space, total leased floor space and occupancy rate indicate the figures as of the contract
date.
(Note 2) Number of tenants indicates the number of the sublessees to whom Taisei-Yuraku Real Estate Co., Ltd., the lessee, will
sublease. Furthermore, JPR will lease the sections to be acquired on the lower floors (from the 1st basement floor to the 4th
floor) and the upper floors (from the 5th floor to the 23rd floor) of the property to Taisei-Yuraku Real Estate Co., Ltd.in alump sum, and Taisei-Yuraku Real Estate Co., Ltd. will sublease the sections to be subleased to sublessees.
(Note 3) Total leasable floor space and total leased floor space respectively indicates the figures that are sum total of the floor spaceof the co-ownership interest to be acquired by JPR for the lower floors and the figure obtained by multiplying the floor spaceof the co-ownership interest to be acquired by JPR by the corresponding cumulative ratio for the upper floors.

3636

Japan Prime Realty Investment Corporation

2. Overview of the Investment Corporation(1) Unitholders’ Capital
32nd Fiscal
Period as ofDecember 31, 2017
5,000,000

33rd Fiscal
Period as ofJune 30, 2018
5,000,000

34th Fiscal
Period as ofDecember 31, 2018
5,000,000

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

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

Total number of units issued andoutstanding

923,000

923,000

923,000

923,000

923,000

Unitholders' capital (millions of yen)

231,653

231,653

231,653

231,653

231,653

Total number of unitholders

12,196

11,647

11,05010,376

9,841

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 36th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

1-8-11 Harumi, Chuo-ku, Tokyo

180,163

19.51

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

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

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

141,11915.28

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

39,800

4.31

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

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

30,887

3.34

Tokyo Tatemono Co., Ltd.

1-9-9 Yaesu, Chuo-ku, Tokyo

29,3003.17

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.70

Meiji Yasuda Life Insurance Company

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

Trust & Custody Services Bank, Ltd. (Securities
Investment Trust Account)

24,000

2.60

Harumi Island Triton Square Office Tower Z,
1-8-12 Harumi, Chuo-ku, Tokyo

21,836

2.36

JPMorgan Securities Japan Co., Ltd.

Tokyo Building, 2-7-3 Marunouchi,
Chiyoda-ku, Tokyo

16,605

1.79

State Street Bank and Trust Company 505103 (Standing
Proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.

P.O. Box 351, Boston, MA 02101, U.S.A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

11,767

1.27

520,477

56.38

Total
(Note) Percentage of total units outstanding is rounded down to the second decimal place.

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 36th fiscal period are as follows.
Position

Executive Officer

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

Name

Other Current Assignments

Yoshihiro Jozaki(Note 3)President and Chief Executive Officer, Tokyo Realty
Investment Management, Inc.
Managing Officer, Tokyo Tatemono Co., Ltd. (Note 4)

Satoshi Okubo(Note 3)–

Total Directors' Fee
during the 36th Fiscal
Period (thousands of yen)

Numberof Owned
Units– (Note 5)

–

866

1

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

Group Representative Partner of GYOSEI Certified
Public Tax & Accountants' Co.

4,200

–

EY ShinNihon LLC–

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

3737

Asset Management Report(Note 3) Satoshi Okubo resigned from the office of Executive Officer at the Twelfth General Meeting of Unitholders of JPR held on September 5, 2019, and Yoshihiro
Jozaki was newly appointed as, and took office of, Executive Officer as of the same date.
(Note 4) Yoshihiro Jozaki, Executive Officer, resigned from the office of Managing Officer of Tokyo Tatemono Co., Ltd. as of December 31, 2019.
(Note 5) Yoshihiro Jozaki, Executive Officer, does not receive any compensation from JPR.

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

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 36th fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

3838

Japan Prime Realty Investment Corporation

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset Type35th Fiscal Period(as of June 30, 2019)

Area

36th Fiscal Period(as of December 31, 2019)

Central Tokyo

Assets owned by JPR(thousands of yen)
86,948,130

Percentage of total
assets (%)
19.2

Assets owned by JPR(thousands of yen)
86,968,578

Percentage of total
assets (%)
19.2

Greater Tokyo

60,045,976

13.3

59,930,822

13.2

Other Cities

20,133,415

4.5

20,024,036

4.4

Central Tokyo

156,029,941

34.5

155,925,261

34.4

Greater Tokyo

50,070,401

11.1

49,886,624

11.0

Other Cities

41,639,292

9.2

41,767,339

9.2

Deposits and otherassets–37,499,443
(–)

8.3
(–)

38,965,069
(–)

8.6
(–)

Total assets–

452,366,601(414,867,157)

100.0(91.7)

453,467,733(414,502,663)

100.0(91.4)

Real estate

Real estate in trust(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheets as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 36th fiscal period.
Occupancy Rate(%)

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

Asset Class

11,034.78

100.0

11.9

Office23,987.40

23,987.40

100.0

6.4

Office8,865.71

8,687.73

98.0

3.3

Office18,495,976

5,971.73

5,971.73

100.0

2.7

OfficeBYGS Shinjuku Bldg.

15,341,927

15,227.80

15,170.47

99.6

3.8

OfficeJPR Sendagaya Bldg.

14,781,061

6,177.74

6,177.74

100.0

1.9

OfficeKanematsu Bldg.

14,608,653

8,090.42

8,090.42

100.0

2.6

OfficeShinjuku Square Tower

13,160,572

19,266.38

19,266.38

100.0

2.8

OfficeKawasaki Dice Bldg.

13,057,178

12,070.15

12,018.91

99.6

2.7

Retail, etc.
Retail, etc.

Book Value(thousands of yen)

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

38,388,259

11,034.78

Olinas Tower

26,732,024

Shinjuku Center Bldg.

22,151,921

Tokyo Square Garden

Property NameJPR Umeda Loft Bldg.
Total

Leased Floor
Space (m2)

12,471,737

18,586.97

18,586.97

100.0

2.2

189,189,312

129,279.08

128,992.53

99.8

40.2

(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.
(Note 2) The tenants of Shinjuku Center Bldg., Tokyo Square Garden, Shinjuku Square Tower and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a leaseagreement has been executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor
space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

3939

Asset Management Report(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 36th fiscal period (December 31, 2019).

Area Type

Property Name

Kanematsu Bldg.

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

JPR Ningyo-cho Bldg.

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

Shin-Kojimachi Bldg.

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

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

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

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

OfficeBYGS Shinjuku Bldg.

Retail, etc.

2,433,443

3,570,000

2,101,112

2,890,000

2,428,613

4,190,000

3,218,344

3,740,000

10,907,482

14,900,000

2,894,659

3,780,000

5,192,216

4,970,000

2,782,734

5,450,000

13,160,572

14,900,000

15,341,927

21,600,000
790,000

Real estate

Shinagawa Canal Bldg.
Rokubancho Bldg.

2-9, etc., Rokubancho, Chiyoda-ku, TokyoJPR Harajuku Bldg.

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

Shinjuku Center Bldg.

22,151,921

17,300,000

Real estate

3,801,112

2,910,000

Real estate

1,882,064

2,360,000

Real estate
Beneficiaryinterest
Beneficiaryinterest
Real estate

2,921,604

3,650,000

8,720,726

11,500,000

JPR Sendagaya Bldg.

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

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

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

Science Plaza-Yonbancho Plaza

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

Shibadaimon Center Bldg.

10-11 Shibadaimon 1-chome, Minato-ku,
TokyoTokyo Square Garden

1-1 Kyobashi 3-chome, Chuo-ku, TokyoJPR Kojimachi Bldg.

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

JPR Shibuya Tower Records Bldg.

22-14 Jinnan 1-chome, Shibuya-ku, TokyoJPR Jingumae 432

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

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

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

Beneficiaryinterest
Beneficiaryinterest
Real estate

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

Real estate

3,290,498

3,240,000

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

10,137,343

11,100,000

3,208,833

3,570,000

4,200,782

6,880,000

2,205,239

1,810,000

2,408,291

2,360,000

1,423,346

2,310,000

7,363,727

9,740,000

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

Real estate

2,937,934

5,380,000

38-5 Akebonocho 2-chome, Tachikawa,Tokyo
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yokohama, Kanagawa
1-3 Taihei 4-chome, Sumida-ku, Tokyo

Beneficiaryinterest

2,878,554

4,470,000

Real estate

5,176,581

9,520,000

Real estate

5,310,567

7,040,000

Real estate

26,732,024

40,000,000

Arca East

2-1 Kinshi 3-chome, Sumida-ku, TokyoJPR Chiba Bldg.

1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba

JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office15,200,000

577,465

Minami Azabu Bldg.

Central Tokyo

14,608,653

Real estate

FUNDES Suidobashi

Greater Tokyo

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

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2019
2019
(thousands of yen)(thousands of yen)
(Note)

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

Across Shinkawa Bldg. Annex

JPR Nihonbashi-horidome Bldg.

Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower

40

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

Kanematsu Bldg. Annex

Gotanda First Bldg.

40

Location

Form ofOwnership

17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

4,788,842

6,840,000

14,781,061

12,100,000

3,687,157

3,770,000

38,388,259

51,900,000

2,739,914

3,300,000

4,146,943

6,170,000

18,495,976

21,700,000

5,822,516

6,410,000

11,446,226

13,800,000

4,261,705

4,230,000

2,573,906

2,800,000

Japan Prime Realty Investment Corporation

Property NameTokyo Tatemono Yokohama Bldg.
Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.

Retail, etc.

Greater Tokyo

OfficeArea TypeJPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.

OfficeOther Cities

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

Retail, etc.

JPR Shinsaibashi Bldg.

5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa
3-1 Bessho 7-chome, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
2-4 Ueno 7-chome, Taito-ku, Tokyo
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, OsakaJPR Umeda Loft Bldg.

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

Housing Design Center Kobe

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

JPR Chayamachi Bldg.
Total(Note)

Location

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

Form ofOwnership
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2019
2019
(thousands of yen)(thousands of yen)
(Note)
7,121,636

9,580,000

5,651,758

9,430,000

7,143,818

12,500,000

Real estate

1,642,963

2,970,000

Real estate

7,197,076

5,680,000

3,553,926

4,350,000

13,057,178

16,300,000

3,812,038

4,000,000

1,566,507

2,270,000

4,328,638

3,620,000

2,927,545

3,920,000

1,476,471

2,130,000

2,355,210

4,620,000

1,327,076

1,660,000

2,031,172

3,400,000

2,146,144

3,530,000

Real estate

3,803,676

3,400,000

Real estate

10,131,287

20,000,000

Beneficiaryinterest
Beneficiaryinterest

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

Beneficiaryinterest
Beneficiaryinterest

5,131,956

4,690,000

12,471,737

14,400,000

Real estate

6,089,072

7,570,000

Beneficiaryinterest

6,004,878

8,500,000

414,502,663

522,660,000

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

4141

Asset Management Report

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

OfficeOfficeRetail,etc.

Other Cities

Retail, etc.

Greater Tokyo

Retail, etc.

Central Tokyo

OfficeArea Type42

42

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.
(Note 3)
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

35th Fiscal Period
36th Fiscal Period(from Jan. 1, 2019 to Jun. 30, 2019)(from Jul. 1, 2019 to Dec. 31, 2019)
RentalRentalRatio to Number
Ratio toNumber of Occupancy Revenues
Occupancy Revenues
Total of Tenants
Total
Tenants at Rate at throughout
Rate atthroughout
Rental at Period
RentalPeriod End Period End
PeriodPeriod End
PeriodRevenues
End
Revenues(Note 1)(%)(thousands(%)(thousands(%)(Note 1)(%)
of yen)of yen)984.9
409,010
2.6
11
100.0
393,3862.5
00.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
87,9310.6
5100.0
94,7670.6
17100.0
114,005
0.7
17
100.0
116,0150.7
787.8
113,4870.7
8
100.0
112,713
0.7
10
100.0
454,724
2.9
10
100.0
468,0882.9
3100.0
132,4310.8
2100.0
136,917
0.9
10
100.0
150,780
1.0
10
100.0
152,4211.0
2100.0
189,9911.2
2
100.0
195,075
1.2
24
100.0
396,486
2.5
23
100.0
413,2942.6
23
96.6
587,9873.7
23
99.6
615,8513.8
4100.0
36,9630.2
4100.0
37,3080.2
3497.5
512,2363.3
3498.0
518,1473.2
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
6
100.0
69,4720.4
6100.0
74,6430.5
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)9
100.0
247,9161.6
9
100.0
299,995
1.9－－

205,738

1.3

－

－

－

－

5
6
9

100.0
100.0
100.0

188,308
288,626
120,360

1.2
1.8
0.8

5
7
9

100.0
100.0
100.0

192,169
293,019
120,945

1.2
1.8
0.8

2

100.0

1,726,749

11.0

2

100.0

1,774,000

11.1

22
9
48
7
1
7
1

94.1
100.0
100.0

100.0

100.0
100.0
100.0

114,448
188,559
395,705
3,178(Note 2)
88,852(Note 2)

0.7
1.2
2.5
0.0
(Note 2)0.6
(Note 2)

23
9
46
6
1
7
1

95.8
100.0
100.0
95.5
100.0
100.0
100.0

113,931
188,793402,309161,357(Note 2)88,757(Note 2)

0.7
1.2
2.5
1.0
(Note 2)0.6
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

9
6
6
39
18
21
44
10
24
1
37
16
21
4
1
1
1
3
28
10
10
8
43
18
15
15
16
12
4
16
10
1
1
5
757

100.0
100.0
100.0
97.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.9
100.0
100.0
94.4
100.0
91.4
99.7
98.3
100.0
100.0
93.8
99.9
100.0
100.0
100.0
100.0
98.6

207,754
94,911
261,774
135,508
122,627
105,789445,858
177,372
147,048(Note 2)
337,618
1,019,185
292,505
276,722(Note 2)
(Note 2)
(Note 2)
127,041
489,201
2,932
126,282
152,307
162,347
101,865
188,764
107,661
115,776
132,377
153,215
529,076
125,340(Note 2)
(Note 2)
166,720
15,695,954

1.3
0.6
1.7
0.9
0.8
0.7
2.8
1.1
0.9
(Note 2)
2.2
6.5
1.9
1.8
(Note 2)
(Note 2)
(Note 2)
0.8
3.1
0.0
0.8
1.0
1.0
0.6
1.2
0.7
0.7
0.8
1.0
3.4
0.8
(Note 2)
(Note 2)
1.1
100.0

9
6
6
38
18
20
42
10
24
1
40
16
22
4
1
1
1
3
29
10
10
8
43
21
14
15
15
12
5
15
10
1

100.0
100.0
100.0
96.3
100.0
98.1
97.2
100.0
98.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.6
100.0
100.0
94.4
100.0
100.0
98.1
98.3
98.3
100.0
99.5
99.9
100.0
100.0

209,279
101,776
265,311
136,176
129,337
107,607445,811
179,147
153,076(Note 2)
338,295
1,029,072
302,688
280,519(Note 2)
(Note 2)
(Note 2)
127,041
517,330
124,134
124,885
154,159
168,793
106,039
189,277
108,207
120,321
133,943
154,321545,285
131,698(Note 2)
(Note 2)
171,154
16,005,870

1.3
0.6
1.7
0.9
0.8
0.7
2.8
1.1
1.0
(Note 2)
2.1
6.4
1.9
1.8
(Note 2)
(Note 2)
(Note 2)
0.8
3.2
0.8
0.8
1.0
1.1
0.7
1.2
0.7
0.8
0.8
1.0
3.4
0.8
(Note 2)
(Note 2)
1.1
100.0

1
5

760

100.0
100.0

99.6

Japan Prime Realty Investment Corporation(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg.
and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance withthe lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.
(Note 3) JPR sold Tokyo Tatemono Kyobashi Bldg. on June 27, 2019.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above. There
were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of the 36th
fiscal period.

43
43

Asset Management Report

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for renovation works, etc. planned as of the end of the 36th fiscal period for JPRowned real estate and entrusted real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses
include portions that are classified as expenses in accounting.

Property Name

Location

PurposeGotanda First Bldg.

Shinagawa-ku,
Tokyo

JPR Naha Bldg.

Naha, Okinawa

Replacement of toilets, etc. on 1st basement
floor and 6th through 11th floors
3rd through 4th phases of replacement of toilets
and hot-water supply rooms

JPR
Nihonbashihoridome
Bldg.
JPR Naha Bldg.
JPR Ichigaya Bldg.
Tokyo Tatemono
Honmachi Bldg.
BYGS Shinjuku Bldg.
Yakuin Business
GardenNiigata Ekinan Center
Bldg.
Tokyo Tatemono
Honmachi Bldg.
Kawaguchi Center
Bldg.

Chuo-ku, Tokyo
Naha, Okinawa
Chiyoda-ku,
Tokyo
Osaka, Osaka
Shinjuku-ku,
TokyoFukuoka,
Fukuoka
Niigata, Niigata
Osaka, Osaka
Kawaguchi,
Saitama

BYGS Shinjuku Bldg.

Shinjuku-ku,
TokyoArca East

Sumida-ku,
Tokyo

Planned (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 36th
Paid
Fiscal Period

Schedule

Nov. 2019–Jun. 2020

128

–

–

Jan. 2020–Sep. 2020

111

–

–

2nd phase of replacement of air conditioning
units

Jan. 2020–May 2020

93

–

–

Repair of exterior walls and rooftop

Jan. 2020–Jun. 2020

90

–

–

Replacement of toilets on 2nd through 7th floors

Jan. 2020–Jun. 2020

89

–

–

Replacement of distribution boards andreplacement of lighting equipment with LED
lamps on 4th and 9th floors

Apr. 2020–Jun. 2020

88

–

–

Mar. 2020–Jun. 2020

46

–

–

Mar. 2020–Jun. 2020

46

–

–

Jan. 2020–Mar. 2020

43

–

–

Apr. 2020–Jun. 2020

41

–

–

Oct. 2019–Mar. 2020

41

–

–

Mar. 2020–Apr. 2020

35

–

–

Feb. 2020–Mar. 2020

31

–

–

Replacement of ceilings in common areas on
3rd through 12th floors
Renovation of smoking rooms to comply with
the Health Promotion Act
Replacement of lighting equipment with LED
lamps on 5th through 10th floors
Installation of variable air volume system for air
conditioning units on 4th and 9th floors
6th phase of replacement of air conditioning
units
Renovation of the entrance hall on 1st floor(ceiling, walls and replacement of lighting
equipment with LED lamps)
Replacement of power receiving andtransforming facilities(2) Capital Expenditures during the 36th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 36th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting new
tenants. In addition, aside from these constructions, JPR conducted construction of 625 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name

Location

JPR Musashikosugi Bldg.
JPR Nihonbashi-horidome
Bldg.

Kawasaki, Kanagawa

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Tokyo Tatemono Honmachi
Bldg.

Osaka, Osaka

Chuo-ku, Tokyo

JPR Naha Bldg.

Naha, Okinawa

Rokubancho Bldg.

Chiyoda-ku, Tokyo

JPR Umeda Loft Bldg.

Osaka, Osaka

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

Other Properties

Repair of exterior walls
1st phase of replacement of air
conditioning units
5th phase of replacement of air
conditioning units

Aug. 2019–Dec. 2019

Construction
Expenses(millions of yen)244

Sep. 2019–Dec. 2019102

Apr. 2019–Sep. 201984

Replacement of air conditioning units

May 2019–Dec. 201975

Purpose

Period2nd phase of replacement of toilets
Jun. 2019–Dec. 2019and hot-water supply rooms
Repair of exterior walls
Jul. 2019–Dec. 2019
3rd phase of replacement ofSep. 2019–Oct. 2019
escalators
Replacement of central monitoring
Jun. 2019–Dec. 2019facilities
Replacement of air conditioning units, repair of common areas,
replacement of lighting equipment with LED lamps, etc.
Total

66
60
45
38
864
1,582

(Note) Expenditures for repair and maintenance included 15 million yen of construction management fees paid to construction management companies as well as the amounts
for repair and maintenance constructions themselves.

4444

Japan Prime Realty Investment Corporation(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.
Operation Period
Balance of deposits at
beginning of current period
Deposits during the period
Amounts used from
deposits during the period
Deposits carried forward to
the next period

32nd Fiscal Period(Jul. 1, 2017 Dec. 31, 2017)

33rd Fiscal Period(Jan. 1, 2018 Jun. 30, 2018)

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

1,075

1,178

422

821

319
1,178

(Millions of yen)

35th Fiscal Period(Jan. 1, 2019 Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 Dec. 31, 2019)

1,215

1,222

1,319

624

1,038

997

784

617

941

1,006

1,215

1,222

1,319

1,310

4545

Asset Management Report

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
35th Fiscal Period(Jan. 1, 2019 - Jun. 30, 2019)

Item(a) Asset Management Fees (Note)

36th Fiscal Period(Jul 1, 2019 - Dec. 31, 2019)574,894569,134

Fixed compensation

75,00075,000

Incentive-based compensation 1

276,506

280,189

Incentive-based compensation 2

223,388

213,945(b) Administrative Service and Custodian Fees

79,04879,051(c) Directors' Fee

6,600

5,066

(d) Trust Fees

24,79023,752

112,068

105,262

797,401

782,268(e) Other Expenses
Total(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (35th fiscal period: 24,302 thousand yen)
have been paid and included in the book value of each property.

(2) Status of Loans Payable
As of December 31, 2019 JPR has the following loans payable.

Long-Term Loans Payable

Short-Term
Loans
PayableCategory

4646

Drawdown
Date

Balance asof Jul. 1,
2019(millionsof yen)

Resona Bank, Ltd.

May 27, 2019

2,000

－

0.169

Jul. 5, 2019

Mizuho Bank Ltd.

Dec. 5, 2019

－

1,000

0.169

Jul. 3, 2020

2,000

1,000

Mizuho Bank Ltd.

Dec. 5, 2012

2,000

－

1.027 Dec. 5, 2019

Mizuho Bank Ltd.

Nov. 27, 2013

3,000

3,000

0.970 Nov. 27, 2020

Mizuho Bank Ltd.

Jun. 27, 2014

5,000

5,000

1.178 Jun. 27, 2023

Mizuho Bank Ltd.

Mar. 11, 2015

2,000

2,000

1.011 Mar. 11, 2024

Mizuho Bank Ltd.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Mizuho Bank Ltd.

Feb. 4, 2016

5,000

5,000

0.804 Feb. 4, 2026

Mizuho Bank Ltd.

Mar. 30, 2017

3,000

3,000

0.351 Mar. 30, 2021

Mizuho Bank Ltd.

Mar. 30, 2017

4,000

4,000

0.400 Mar. 30, 2022

Mizuho Bank Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Mizuho Bank Ltd.

Dec. 5, 2019

－

2,000

0.646 Dec. 5, 2029

MUFG Bank, Ltd.

Aug. 8, 2012

1,000

－

1.178 Aug. 8, 2019

MUFG Bank, Ltd.

Dec. 5, 2012

1,000

－

1.027 Dec. 5, 2019

MUFG Bank, Ltd.

Nov. 27, 2013

3,000

3,000

MUFG Bank, Ltd.

Jun. 27, 2014

4,000

4,000

Principal lump
Unsecured/
0.970 Nov. 27, 2020 sum repayment (Note 3)
Unguaranteedon maturity
0.889 Jun. 25, 2021

MUFG Bank, Ltd.

Aug. 31, 2015

1,000

1,000

0.873 Aug. 31, 2023

MUFG Bank, Ltd.

Mar. 25, 2016

5,000

5,000

0.510 Mar. 25, 2024

MUFG Bank, Ltd.

Dec. 15, 2016

2,000

2,000

0.633 Dec. 13, 2024

MUFG Bank, Ltd.

Aug. 8, 2017

1,000

1,000

0.638 Aug. 8, 2025

MUFG Bank, Ltd.

Aug. 29, 2017

5,000

5,000

0.600 Aug. 29, 2025

MUFG Bank, Ltd.

Sep. 5, 2017

3,000

3,000

0.593 Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

Dec. 5, 2012

1,000

－

1.027 Dec. 5, 2019

Lender

Total



Balance as
Averageof Dec. 31, interest Rate
Repayment
2019
(%)
Date
(millions(Note 1)of yen)
(Note 2)



Sumitomo Mitsui Banking Corporation

Jun. 27, 2013

3,000

3,000

1.265 Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

2,500

1.033 Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

2,000

2,000

0.351 Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

4,000

4,000

0.400 Mar. 30, 2022

Repayment
MethodUseRemarks

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteedon maturityJapan Prime Realty Investment Corporation

Long-Term Loans PayableCategory

LenderDrawdown
Date

Balance asof Jul. 1,
2019(millionsof yen)

Balance as
Averageof Dec. 31, interest Rate
Repayment
2019
(%)
Date
(millions(Note 1)of yen)
(Note 2)Repayment
MethodUseRemarks

Sumitomo Mitsui Banking Corporation

Dec. 5, 2019

－

1,000

0.245 Dec. 5, 2023

Development Bank of Japan, Inc.

Jun. 27, 2013

820

820

1.449 Jun. 25, 2021

Development Bank of Japan, Inc.

Dec. 5, 2013

2,000

2,000

1.188 Dec. 3, 2021

Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15, 2016

3,000

3,000

0.843 Jun. 14, 2027

Development Bank of Japan, Inc.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Development Bank of Japan, Inc.

Jun. 27, 2019

2,100

2,100

0.572 Jun. 27, 2029

Shinsei Bank, Ltd.

Sep. 24, 2013

2,000

2,000

1.076 Sep. 24, 2020

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134 Dec. 5, 2024

Shinsei Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.843 Jun. 14, 2027

Shinsei Bank, Ltd.

Apr. 5, 2019

5,000

5,000

0.673 April 5, 2029

Shinkin Central Bank

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

Shinkin Central Bank

Dec. 5, 2018

3,000

3,000

0.663

Shinkin Central BankJun. 27, 2019

2,000

2,000

0.447 Dec. 27, 2027

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

3,000

1.076

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2017

4,000

4,000

0.309 Mar. 30, 2020

Aozora Bank Ltd.

Aug. 8, 2012

2,000

－

1.178 Aug. 8, 2019

Aozora Bank Ltd.

Sep. 30, 2013

1,000

1,000

1.069 Sep. 24, 2020

Aozora Bank Ltd.

Jul. 3, 2017

900

900

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.534 Aug. 23, 2024

Aozora Bank Ltd.

Aug. 25, 2017

1,000

1,000

0.574 Feb. 25, 2025

Aozora Bank Ltd.

Aug. 30, 2018

2,000

2,000

0.553 Feb. 25, 2025

The Norinchukin Bank

Dec. 15, 2016

2,000

2,000

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

Principal lump
0.388 Dec. 14, 2021 sum repayment (Note 3) Unsecured/
Unguaranteedon maturity
0.604 Jun. 5, 2025

The Norinchukin BankJun. 27, 2019

2,000

2,000

0.405 Jun. 25, 2027

The Bank of Fukuoka, Ltd.

Sep. 24, 2013

1,000

－

0.911 Sep. 24, 2019

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2016

2,000

2,000

0.480

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

Sep. 24, 2019

－

1,000

0.554 Sep. 21, 2029

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813 Jun. 21, 2028

The Shinkumi Federation Bank

Feb. 5, 2018

4,000

4,000

0.404 Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646 May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.388 Dec. 14, 2021

Sumitomo Life Insurance Company

Oct. 11, 2016

2,000

2,000

0.453 Oct. 11, 2024

Sumitomo Life Insurance Company

Jul. 22, 2019

－

1,000

0.583 Jul. 20, 2029

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011 Dec. 25, 2020

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

0.969 Sep. 4, 2024

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Jun. 5, 2028

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Chugoku Bank, Ltd.

Sep. 25, 2018

1,000

1,000

0.661 Mar. 25, 2026

National Mutual Insurance Federationof Agricultural Cooperatives

Dec. 15, 2016

2,000

2,000

0.388 Dec. 14, 2021

Sompo Japan Nipponkoa Insurance Inc. Dec. 25, 2015

2,000

2,000

0.759 Dec. 25, 2023

0.625

Jun. 4, 2027

Feb. 4, 2020

Jul. 3, 2025

Feb. 5, 2025

Nippon Life Insurance Company

Nov. 22, 2019

－

2,000

0.225 Nov. 22, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.489

Oct. 9, 2020

4747

Asset Management Report

Category

Balance asof Jul. 1,
2019(millionsof yen)

DrawdownDate

Lender

Balance as
Averageof Dec. 31, interest Rate
Repayment
2019
(%)
Date
(millions(Note 1)of yen)
(Note 2)The Hachijuni Bank, Ltd.

Sep. 26, 2016

1,000

1,000

0.209 Sep. 24, 2021

Resona Bank, Ltd.

Mar. 30, 2017

2,000

2,000

0.438 Sep. 30, 2022

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

NTT FINANCE CORPORATION

May 31, 2018

1,000

1,000

0.408 May 31, 2023

The 77 Bank, Ltd.

May 31, 2018

1,000

1,000

0.408 May 31, 2023

The Daishi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Daido Life Insurance Company

Dec. 27, 2018

1,000

1,000

0.316 Dec. 25, 2023

The Chiba Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.449 Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Dec. 27, 2018

1,000

1,000

0.299 Jun. 27, 2023

The Hyakugo Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.582 Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.396 Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited

Oct. 4, 2019

－

1,000

0.310

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691 Mar. 25, 2026

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027



157,520

157,520

Total

Repayment
Method

Use





RemarksOct. 6, 2023

Oct. 2, 2026







(Note 1) The average interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.

(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of December 31, 2019 are as follows.
Balance as of
Balance as of
CouponRate
Jul. 1, 2019
Dec. 31, 2019(%)(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Sixteenth Series of Investment
Nov. 22, 2012
Corporation Bonds

2,000

－

1.030

Nov. 22, 2019

Eighteenth Series of Investment
May 31, 2013
Corporation Bonds

2,000

2,000

1.460

May 31, 2023

Nineteenth Series of Investment
Feb. 5, 2014
Corporation Bonds

5,000

5,000

1.110

Feb. 5, 2024

Twentieth Series of Investment
Jul. 22, 2014
Corporation Bonds

2,000

－

0.303

Jul. 22, 2019

Twenty-first Series ofJul. 22, 2014
Investment Corporation Bonds

4,000

4,000

1.278

Jul. 22, 2026

Twenty-second Series ofDec. 4, 2014
Investment Corporation Bonds

3,000

3,000

0.831

Dec. 4, 2024

Twenty-third Series of
May 31, 2018
Investment Corporation Bonds

3,000

3,000

0.550

May 31, 2028

Twenty-fourth Series ofInvestment Corporation Bonds July 31, 2019
(Green Bonds)

－

5,000

0.570

July 31, 2029

25,50026,500

Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

(4) Subscription Rights to Shares
Not applicable

4848

Japan Prime Realty Investment Corporation

6. Acquisitions and Sales during the 36th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities
Not applicable(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 36th fiscal period.

(3) Survey on Values of Specified Assets, etc.
Not applicable(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of special assets or other deals with interested parties and major shareholders were conducted during the 36th fiscal
period.
2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

336,753

Outsourcing Fees

614,244

Tenant Brokerage Fees

94,818

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
264,577
Prime Place Co., Ltd.
15,943
Tokyo Tatemono Co., Ltd.
463,743
Prime Place Co., Ltd.
13,239
Tokyo Tatemono Co., Ltd.
55,809
Prime Place Co., Ltd.
1,527

(Thousands of yen)
Ratio to Total
Amount(B/A))
78.6%
4.7%
75.5%
2.2%
58.9%
1.6%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 37,524 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or major
shareholders during the 36th fiscal period.
Tokyo Tatemono Co., Ltd.

736,634 thousand yen

Prime Place Co., Ltd.

20,194 thousand yen

Tokyo Real Estate Management Co., Ltd.

151,254 thousand yen

Shinjuku Center Building Management Co., Ltd.

34,205 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

4949

Asset Management Report

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

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

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

8. Overview of Self-Managed Investment Trust Beneficiary
Certificates(1) Acquisition
Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

–

40

January 22, 2002 (Note)

60

–

100

Accumulated Total

100

–

100

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

(2) Units Held
Number of Units Held at End
of Period
27th Fiscal Period(Jan. 1, 2015 – Jun. 30, 2015)
28th Fiscal Period(Jul. 1, 2015 – Dec. 31, 2015)
29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)
30th Fiscal Period(Jul. 1, 2016 – Dec. 31, 2016)
31st Fiscal Period(Jan. 1, 2017 – Jun. 30, 2017)
32nd Fiscal Period(Jul. 1, 2017 – Dec. 31, 2017)
33rd Fiscal Period(Jan. 1, 2018 – Jun. 30, 2018)
34th Fiscal Period(Jul. 1, 2018 – Dec. 31, 2018)35th Fiscal Period(Jan. 1, 2019 – Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)(Note) Total investment at end of period represents the acquisition price.

5050

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

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

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

11. Other(1) Notice1) General Meeting of Unitholders
The Twelfth General Meeting of Unitholders of JPR was held on September 5, 2019.
Items approved at the General Meeting of Unitholders are summarized below.
AgendaPartial amendments to the Articles of Incorporation

Appointment of one Executive Officer
Appointment of one Substitute Executive Officer
Appointment of two Supervising Officers
Appointment of one Substitute Supervising Officer

Overview
Amendments were made to the following items of the Articles of Incorporation.
(1) Amendments to the Articles of Incorporation were made in order to add hotels (urban
accommodation facilities) to the investment target of JPR.
(2) With regard to the asset management fee JPR pays to the asset management company, for the purposeof introducing an asset management fee system which is more linked to unitholder interest,
amendments were made to (i) change “Fixed fee” to “Management Fee 1” linking it to totalacquisition amount, (ii) change “Incentive Fee 1” to “Management Fee 2” lowering the fee rate from
1.5% or 2% to 1.2%, (iii) change “Incentive Fee 2” to “Management Fee 3” introducing a new
calculation method based on the distributable amount and also changing the fee rate. Amendments
were also made to (iv) change “Incentive Fee 3” to “Management Fee 4,” raising the fee rate from
0.25% to 0.5% while newly establishing a merger fee and (v) newly establish “Management Fee 5”
to set fees for sales.
(3) In order to ensure that the amendments to the Articles of Incorporation described in (2) above takeeffect as to asset management fees arising on January 1, 2020 and after, as well as to take transitional
measures for calculating Management Fee 3, supplementary provisions stipulated such matters.
(4) Other than the above, necessary provisions were established, expressions were changed andclarified, unnecessary definitions were deleted, and corrections were made to terminology.
Yoshihiro Jozaki was appointed as Executive Officer.
Yoshinaga Nomura was appointed as Substitute Executive Officer.
Masato Denawa and Nobuhisa Kusanagi were appointed as Supervising Officers.
Akihiro Kawaguchi was appointed as Substitute Supervising Officer.

2) Board of Directors of JPR
Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the 36th fiscal
period include the following:
Date of Board of Directors Meeting

Approved Item

July 1, 2019

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

August 14, 2019Conclusion of memorandum concerning
amendments to the asset managementagreement

Overview
JPR consigned the administrative services related to the issuance of theTwenty-Fourth Series of Unsecured Investment Corporation Bonds toMizuho Securities Co., Ltd., SMBC Nikko Securities Inc. and Mizuho
Bank, Ltd., on the condition that the Executive Officer should decide toissue the relevant Bonds.
Reviews were made to necessary articles and provisions of the asset
management agreement, subject to the approval of the proposed
amendments to the Articles of Incorporation at the Twelfth General
Meeting of Unitholders of JPR held on September 5, 2019.

(Note) The board of directors’ meeting held on April 18, 2019 passed the comprehensive resolution on the issuance of the relevant investment corporation bonds. Based on
this, JPR issued the Twenty-Fourth Series of Unsecured Investment Corporation Bonds on July 31, 2019.

(2) Other
Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis asset management report.

5151

Financial Statements(1) Balance Sheets(Thousands of yen)
End of 35th Fiscal Period(Jun. 30, 2019)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

23,484,645
12,782,464
385,838
138,878
11,95925,016,928
12,758,578
246,507
159,405
15,19836,803,787

38,196,618

59,982,967(18,061,478)

60,602,042(18,920,510)

41,921,489

41,681,532

Buildings in trust
Accumulated depreciation

92,611,962(34,475,696)

93,481,011(35,522,474)

Buildings in trust, net

58,136,265

57,958,537

58,409(25,144)

58,409(26,812)

Buildings, net

Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation

33,264

31,597

144,695(85,434)

146,650(88,531)Structures in trust, net

59,26058,118

Machinery and equipment
Accumulated depreciation

799,611(520,489)

821,773(542,077)

Machinery and equipment, net

279,122279,696

Machinery and equipment in trust
Accumulated depreciation

1,875,622(1,408,464)

1,919,756(1,435,893)

467,158

483,862

101,869(58,744)

129,582(64,452)

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

43,124

65,129Tools, furniture and fixtures in trust
Accumulated depreciation

222,723(161,023)

232,578(169,599)

61,69962,979Land
Land in trust
Construction in progress
Construction in progress in trust

113,047,999
189,014,043
383
247

113,060,949
189,014,043
2,413
2,035

Total property, plant and equipment

403,064,057

402,700,894

11,801,831
4,352

11,801,831
3,962

11,806,183

11,805,793

544,858
38,413590,776
43,220Tools, furniture and fixtures in trust, net

Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

5230

End of 36th Fiscal Period(Dec. 31, 2019)

583,271

633,997

415,453,512

415,140,685

101,0448,256

129,512917

109,301

130,429452,366,601

453,467,733

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 35th Fiscal Period(Jun. 30, 2019)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*2

End of 36th Fiscal Period(Dec. 31, 2019)

2,771,354
2,000,000
18,000,000
4,000,000
739,135
70,252605
130,292
2,860,847
43,775

3,379,730
1,000,000
21,000,000－
669,920
81,175605
381,254
3,022,445
5,033

30,616,261

29,540,165

21,500,000
139,520,000
8,098,431
13,465,138

26,500,000
136,520,000
8,049,652
13,588,304

182,583,569

184,657,957

213,199,831

214,198,122

231,653,198

231,653,198

284,356

689,444284,356

689,4447,229,214

6,926,967

7,513,570

7,616,411

239,166,769

239,269,610

239,166,769
452,366,601*2

239,269,610
453,467,733

3153

Financial Statements(2) Statements of Income and Retained Earnings(Thousands of yen)
35th Fiscal Period(Jan. 1, 2019 - Jun. 30, 2019)
Operating revenue
Rent revenue-real estate
Gain on sale of real estate*1*2

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

16,005,870－
16,005,870*1

7,349,926
574,894
79,0486,600
24,790112,068*1

7,538,619
569,134
79,051
5,066
23,752
105,262

8,147,328

8,320,887

7,954,417

7,684,983

182
59,246
11,239
2,096

189
4,357
1,527
1,639

72,766

7,713

593,661
32,040166,407
10,835
7,219
191

556,344
27,753
174,899
10,9537,339
221

810,355

777,510

Ordinary income

7,216,828

6,915,185

Income before income taxes

Total non-operating expenses

7,216,828

6,915,185

Income taxes-current

605

605

Total income taxes

605

605

Net income

7,216,223

6,914,580

Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

12,991
7,229,214

12,386
6,926,967

32

54

*1

16,101,745

Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses

15,695,954
405,791

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

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)
35th Fiscal Period(Jan. 1, 2019 - Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 - Dec. 31, 2019)

231,653,198

231,653,198

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

231,653,198

231,653,198

284,356

284,356

Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period

405,088

Provision of reserve for reduction entry－

405,088284,356

689,4446,774,889

7,229,214

Provision of reserve for reduction entry
Dividends from surplus(6,761,898)(405,088)(6,811,740)

Net income

7,216,223

6,914,580

Total changes of items during the period
Balance at end of current period
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period

454,325(302,247)

7,229,214

6,926,967

7,059,245

7,513,570

Dividends from surplus(6,761,898)(6,811,740)

Net income

7,216,223

6,914,580

Total changes of items during the period
Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry－

454,325

102,840

Balance at end of current period

7,513,570

7,616,411

Total unitholders' equity
Balance at the beginning of current period
Changes of items during the period

238,712,444

239,166,769

Dividends from surplus(6,761,898)(6,811,740)

Net income

7,216,223

6,914,580

Total changes of items during the period

Provision of reserve for reduction entry－

454,325

102,840

Balance at end of current period

239,166,769

239,269,610

Total net assets
Balance at beginning of current period

238,712,444

239,166,769

Dividends from surplus(6,761,898)(6,811,740)

Net income

7,216,223

6,914,580

Total changes of items during the period

Changes of items during the period
Provision of reserve for reduction entry

Total changes of items during the period
Balance at end of current period－

454,325

102,840

239,166,769

239,269,610

33
55

Financial Statements(4) Statements of Cash Distributions
35th Fiscal Period(Jan. 1, 2019 - Jun. 30, 2019)I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Voluntary reserve
Provision of reserve for reduction entry

IV.

Retained earnings carried forward

Method for calculating distribution amount34

56

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

7,229,214,642 yen
6,811,740,000 yen(7,380 yen)

6,926,967,425 yen
6,916,039,000 yen(7,493 yen)

405,088,162 yen－

12,386,480 yen

10,928,425 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,811,740,000 yen,which is the largest integral multiple of thetotal number of investment units issued andoutstanding (923,000 units) from the balanceof unappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 66-2 of the
Act on Special Measures Concerning Taxationand to the extent of minimizing the burden tounitholders incurred by accrual of corporate
income tax, etc. Furthermore, JPR shall not
distribute cash in excess of earnings as
stipulated in Article 30 (4) of the Articles ofIncorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,916,039,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)
35th Fiscal Period(Jan. 1, 2019 - Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 - Dec. 31, 2019)

7,216,828

6,915,185

1,965,898
10,835

1,974,265
10,953

7,219

7,339

Interest expenses(182)
760,069(189)
731,243

Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses(93,912)
15,734

139,330(20,526)

Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other111,534

76,70670,167(132,073)(69,756)
250,962

34,4732,020,668

161,598

Other, net

3,251,290
55,016－(72,891)

Subtotal

15,293,568

10,104,222

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received

Decrease in property, plant and equipment due to sale
Decrease in intangible assets due to saleInterest income received
Interest expenses paid
Income taxes (paid) refund

－

182

189

(765,902)(605)(720,320)(606)

Net cash provided by (used in) operating activities

14,527,242

9,383,485

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment(9,804,326)(429,256)

Purchase of property, plant and equipment in trust
Purchase of intangible assets(759,308)(365,875)

(649,786)

Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits(49,857)－(45,918)

Proceeds from tenant leasehold and security deposits(484,149)
647,991(206,466)
157,687

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(431,553)
691,979(239,597)
387,903

Net cash provided by (used in) investing activities(10,555,099)(1,025,434)

Net cash provided by (used in) financing activities
Proceeds from short-term loans payable

2,000,000

4,000,000－
11,100,000(9,100,000)(5,000,000)

4,960,579(4,000,000)

Dividends paid－－
(6,761,902)

Net cash provided by (used in) financing activities(2,761,902)(6,849,654)

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

Redemption of investment corporation bonds

8,000,000(8,000,000)(6,810,234)

Net changes in cash and cash equivalents

1,210,240

1,508,397

Cash and cash equivalents at beginning of current period

35,056,869

36,267,109

Cash and cash equivalents at end of current period*136,267,109*1

37,775,506

35
57

Financial Statements(6) Notes to Financial Statements(Basis of Presenting Financial Statements)
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its financial statements in accordancewith accounting principles generally accepted in Japan (Japanese GAAP), including provisions set forth in the Financial Instruments
and Exchange Act of Japan, the Act on Investment Trusts and Investment Corporations (the Investment Trusts Act), the Companies Act
and the related regulations, which are different in certain respects as to the adoption and disclosure requirements of International
Financial Reporting Standards.
The accompanying financial statements are basically a translation of the audited financial statements of JPR, which were prepared inaccordance with Japanese GAAP and filed with the Kanto Local Finance Bureau. In preparing the accompanying financial statements,
certain reclassifications have been made to the financial statements issued domestically in order to present them in a format which ismore familiar to readers outside Japan. In addition, the notes to financial statements include information which might not be required
under Japanese GAAP but is presented herein as additional information.
JPR’s accounting periods end at the end of June and December.

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

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

4. Scope of Cash and Cash
Equivalents in the Statements ofCash Flows
5. Other Significant Items
Fundamental to the Preparation of
Financial Statements

3658(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:  Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years basedon the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR uses
the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses related
to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the purchase cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted to
17,423 thousand yen for the fiscal period ended June 30, 2019, and were nil for the fiscal period ended December
31, 2019.
Cash and cash equivalents in the Statements of Cash Flows include the following items(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the balance
sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately presented in the balance sheets for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
Revenues and expenses in the Statements of Income and Retained Earnings do not include consumption taxes.

Japan Prime Realty Investment Corporation(Notes to Accounting Standards Not Yet Adopted)
・Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 issued by the Accounting Standards Board of Japan (ASBJ)
on March 30, 2018)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 issued by ASBJ on March
30, 2018)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed acomprehensive accounting standard for revenue recognition, and issued it as Revenue from Contracts with Customers (IFRS 15
issued by IASB and Topic 606 issued by FASB) in May 2014. The IFRS 15 is applicable for accounting periods beginning on
January 1, 2018 and thereafter, and the Topic 606 is applicable for accounting periods beginning after December 15, 2017. In
accordance with this, the ASBJ has developed a comprehensive accounting standard for revenue recognition and issued it together
with its implementation guidance.
In developing the accounting standard for revenue recognition, the ASBJ made it a basic policy to adopt the basic principles of the
IFRS 15 as a starting point. By doing so, the ASBJ established the accounting standard from the viewpoint of comparability, which
is a benefit for securing consistency with the IFRS 15, between financial statements based on the Japanese GAAP and those basedon other accounting standards. Alternative treatments were also added, to the extent that they do not harm the comparability, in cases
where there are items to be considered in the actual practices conducted in Japan to date.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard and Implementation Guidance from the beginning of the fiscal period ending December 31,
2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Revenue Recognition is being assessed at present.
・Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued by ASBJ on July 4 2019)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31 issued by ASBJ on July4, 2019)(1) Overview
IASB and FASB have established detailed guidance for fair value measurement (IFRS 13 “Fair Value Measurement” by IASB and
Topic 820 “Fair Value Measurement” by FASB). In order to improve the comparability between these international accounting
standards and the Japanese accounting standard, ASBJ held repeated deliberations concerning mainly the guidance and disclosureon the fair value of financial instruments, and has published the accounting standard and implementation guidance for fair value
measurement.
(2) Scheduled date of adoption
JPR will adopt the Accounting Standard and Implementation Guidance from the beginning of the fiscal period ending December 31,
2021.
(3) Impact of adoption of the accounting standard and implementation guidance
The amount of impact on the financial statements by the adoption of the Accounting Standard and Implementation Guidance for
Fair Value Measurement is being assessed at present.

3759

Financial Statements(Notes to Balance Sheets)
1. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.
(Thousands of yen)
End of 35th Fiscal Period(as of June 30, 2019)Credit limit
Outstanding debts at end of period
Unused commitment line at end of period

End of 36th Fiscal Period(as of December 31, 2019)24,000,000

24,000,000－－

24,000,000

24,000,000*2 Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 35th Fiscal Period(as of June 30, 2019)

End of 36th Fiscal Period(as of December 31, 2019)50,00050,000(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business35th Fiscal Period(January 1, 2019 – June 30, 2019)(Thousands of yen)
36th Fiscal Period(July 1, 2019 – December 31, 2019)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents

11,131,988
1,726,749

11,372,402
1,774,000

Common charges

1,591,893

1,567,002

Parking fees
Advertising fees

266,789
75,465

262,373
36,467

Antenna usage fees
Other

25,761
39,276

26,17643,384

14,857,925

15,081,806

683,694

799,897

8,711
46,466

8,286
21,686

Income equivalent to expenses for restoration
to original condition

71,16462,445

Other miscellaneous income

27,992

31,748Subtotal
Other rental revenues
Incidental rent income
Time-based parking fees
Cancellation charges

838,028924,063

15,695,954

16,005,870
16,005,870

Outsourcing expenses
Utilities expenses

593,100
782,428

609,389
866,496

Property and other taxes
Casualty insurance

2,349,569
24,6902,335,893
25,316

Repairs and maintenance
Property management fees

578,869

610,360

293,791
569,179

299,229
570,509

1,965,736
192,562

1,973,941
247,482

7,349,926

7,538,619

8,346,027

8,467,251

Subtotal
Total rent revenue-real estate
B. Expenses Related to Rent Business

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

38

60

Japan Prime Realty Investment Corporation*2. Breakdown of Gain on Sale of Real Estate, etc.

(Thousands of yen)
35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)

Tokyo Tatemono Kyobashi Bldg.
Proceeds from sale of real estate

5,800,000－

Cost of sale of real estate
Other expenses related to sale

5,271,959
122,248－－405,791－

35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)

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

5,000,000 units

5,000,000 units

923,000 units

923,000 units

Number of units outstanding(Notes to Statements of Cash Flows)*1. Reconciliation of the Amounts of the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows with theAmounts of the Corresponding Accounts on the Balance Sheets(Thousands of yen)
35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)

Cash and deposits

23,484,645

25,016,928

Cash and deposits in trust

12,782,464

12,758,578

Cash and cash equivalents

36,267,109

37,775,506(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)

35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)

Due within one year

6,566,448

5,468,297

Due after one year

11,643,861

9,625,164

Total

18,210,309

15,093,461(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of short-term
funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.

39
61

Financial Statements

Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but the liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby the financial division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
The fair value of financial instruments, aside from values based on market price, include values based on reasonable calculations
when there is no market price. Certain assumptions are used in calculating those values and there may be cases where the values
will vary when different assumptions are used.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of June 30, 2019 of financial instruments, and the difference between theseamounts. Please note that the following table does not include those for which discerning of fair value is recognized to be extremely
difficult (please refer to Note 3).
(Thousands of yen)Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

23,484,645

23,484,645－(2)

Cash and deposits in trust

12,782,464

12,782,464－(3)

Short-term loans payable(2,000,000)(2,000,000)－(4)

Current portion of long-term loans payable(18,000,000)(18,079,700)

79,700(5)

Current portion of investment corporation bonds(4,000,000)(4,010,073)

10,073(6)

Investment corporation bonds(21,500,000)(23,073,405)

1,573,405(7)

Long-term loans payable(139,520,000)(142,182,670)

2,662,670

The following are the carrying values and fair values as of December 31, 2019 of financial instruments, and the difference between
these amounts. Please note that the following table does not include those for which discerning of fair value is recognized to be
extremely difficult (please refer to Note 3)(Thousands of yen)Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

25,016,928

25,016,928－(2)

Cash and deposits in trust

12,758,578

12,758,578－(3)

Short-term loans payable(1,000,000)(1,000,000)－(4)

Current portion of long-term loans payable(21,000,000)(21,091,412)

91,412(5)

Current portion of investment corporation bonds

－

－

－

(6)

Investment corporation bonds(26,500,000)(27,732,745)

1,232,745(7)

Long-term loans payable(136,520,000)(138,243,341)

1,723,341(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the fair value is approximately the same as the carrying value and is thus stated at thatcarrying value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the carrying value and is thus stated at that carrying value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount of principal and interests
are discounted by the rate assumed as being applicable in the event of a new drawdown whose term is corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are measured based on market price and those with no market price are calculated inaccordance with (4) and (7) above.

40

62

Japan Prime Realty Investment Corporation(Note 3) Financial instruments for which discerning of fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since it is difficult
to estimate the actual lease term. The following is the carrying value of tenant leasehold and security deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
End of 35th Fiscal Period(as of June 30, 2019)

Category

End of 36th Fiscal Period(as of December 31, 2019)

Tenant leasehold and security deposits

8,098,431

8,049,652

Tenant leasehold and security deposits in trust

13,465,138

13,588,304(Note 4) Scheduled redemption of monetary claims to be due subsequent to the 35th fiscal period end (June 30, 2019)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Cash and deposits

23,484,645

－

－

－

－

－

Cash and deposits in trust

12,782,464

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

Scheduled redemption of monetary claims to be due subsequent to the 36th fiscal period end (December 31, 2019)(Note 5)

(Thousands of yen)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

25,016,928

－

－

－

－

－

Cash and deposits in trust

12,758,578

－

－

－

－

－

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due subsequent to
the 35th fiscal period end (June 30, 2019)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Short-term loans payable

2,000,000

－

－

－

－

－

Investment corporation bonds

4,000,000－－

2,000,000

5,000,000

14,500,000

Long-term loans payable

18,000,000

20,820,000

20,500,000

16,000,000

17,000,000

65,200,000Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due subsequent to the36th fiscal period end (December 31, 2019)

Short-term loans payable(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

1,000,000

－

－

－

－

－

－

－

－

2,000,000

8,000,000

16,500,000

21,000,000

19,820,000

18,500,000

21,000,000

15,000,000

62,200,000

Investment corporation bonds
Long-term loans payable

Due after FourYears throughFive Years

Due after Five
Years

(Securities)
35th fiscal period (as of June 30, 2019)
Not applicable
36th fiscal period (as of December 31, 2019)
Not applicable(Derivative Transactions)
35th fiscal period (as of June 30, 2019)
Not applicable as JPR entered into no derivative transactions

41
63

Financial Statements

36th fiscal period (as of December 31, 2019)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
35th fiscal period (as of June 30, 2019)
Not applicable as JPR does not have any retirement benefit plans
36th fiscal period (as of December 31, 2019)
Not applicable as JPR does not have any retirement benefit plans(Tax Effect Accounting)
1. Breakdown of Main Items that Caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting

35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)31.51%

31.51%

Deductible cash distributions(29.74%)(31.51%)Other(1.76%)

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Effective statutory tax rate
(Adjustment)(Equity Method Income and Retained Earnings)
35th fiscal period (January 1, 2019 – June 30, 2019)
Not applicable as JPR does not have any affiliated companies
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
35th fiscal period (January 1, 2019 – June 30, 2019)
Not applicable
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
2. Subsidiaries
35th fiscal period (January 1, 2019 – June 30, 2019)
Not applicable
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
3. Sister Companies
35th fiscal period (January 1, 2019 – June 30, 2019)
Not applicable
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable
4. Directors and Major Individual Unitholders
35th fiscal period (January 1, 2019 – June 30, 2019)
Not applicable
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable4264Japan Prime Realty Investment Corporation(Asset Retirement Obligations)
35th fiscal period (January 1, 2019 – June 30, 2019)
Not applicable
36th fiscal period (July 1, 2019 – December 31, 2019)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rental business.
[Related Information]
35th fiscal period (January 1, 2019 – June 30, 2019)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
36th fiscal period (July 1, 2019 – December 31, 2019)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit is in excess of 90% of operating revenue
on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on the Statementsof Income and Retained Earnings.

43
65

Financial Statements(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban complex properties forleasing in Tokyo and other regions. The following is the carrying value on the balance sheets, amount of increase (decrease) during
the period and fair value of these investment and rental properties.
(Thousands of yen)Carrying Value on the Balance Sheets
Balance at Beginning of Period

Amount of Increase (Decrease) during the PeriodBalance at End of Current Period

35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)

410,964,607

Fair Value at End of Period

414,867,157

3,902,549(364,493)

414,867,157
509,065,000

414,502,663
522,660,000(Note 1) The carrying value on the balance sheets is the purchase cost less accumulated depreciation.
(Note 2) For the 35th fiscal period, the amount of increase is primarily attributable to the additional acquisition of Shinagawa Canal Bldg. (179,872 thousand yen), and theacquisition of KY Kojimachi Bldg. (5,813,591 thousand yen) and FUNDES Ueno (3,822,914 thousand yen), and the amount of decrease is primarily attributable
to the sale of Tokyo Tatemono Kyobashi Bldg. (5,271,959 thousand yen) and depreciation (1,965,736 thousand yen). For the 36th fiscal period, the amount ofdecrease is primarily attributable to depreciation (1,973,941 thousand yen).
(Note 3) The fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 35th and 36th fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)


35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)259,118 yen

259,230 yen

7,818 yen

7,491 yen

Total net assets per unit
Net income per unit

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

35th Fiscal Period(January 1, 2019 – June 30, 2019)
7,216,223

36th Fiscal Period(July 1, 2019 – December 31, 2019)
6,914,580－
7,216,223－
6,914,580

923,000 units

923,000 units

Amounts not attributable to ordinary unitholders (thousands of yen)
Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period(Subsequent Events)

Issuance of new investment units
JPR resolved at its Board of Directors meetings held on February 14, 2020 and February 26, 2020 to issue new investment units, as
outlined below. With payment completed on March 3, 2020, JPR issued the units under the following conditions. As a result of theissuance, unitholders’ capital stands at 247,860,796,100 yen with the number of investment units outstanding totaling 958,250 units
as of the date of this document. Furthermore, with regard to the issuance of new investment units through third-party allotment thatwas resolved on at the said Board of Directors meetings, the allottee notified JPR that it would not subscribe in whole the planned
number of units to be issued. Accordingly, the issuance of new investment units through third-party allotment was cancelled.

<Issuance of new investment units through public offering (primary offering)>
Number of new investment units issued:
35,250 units
Issue price (offer price):
474,810 yen per unit
Total issue price (total offer price):
16,737,052,500 yen
Paid-in amount (purchase price):
459,790 yen per unit
Total paid-in amount (total purchase price):
16,207,597,500 yen
Payment date:
March 3, 2020

44

66

Japan Prime Realty Investment Corporation(7) Detailed Schedules
1) Schedule of Securities
Not applicable2) Status of Contract Amounts, etc. and Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable3) Schedule of Assets Related to Real Estate

Asset Type

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

Accumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
July 1, 2019
the Period
the Period
during the2019
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Net Balance as ofDecember 31, 2019
(thousands of yen)

-

-

-

-

-

-

-

59,982,967
58,409619,075－－－

60,602,042
58,40918,920,510
26,812859,031
1,667

41,681,532
31,597

799,611

22,162－

821,773542,077

21,588279,696

101,869

27,713－

129,582

64,452

5,708

65,129113,047,999

12,950－113,060,949－－

113,060,949

383

2,156

126

2,413

－

－

2,413

173,991,240

684,057

126

174,675,170

19,553,852

887,995

155,121,318

92,611,962

869,049－

93,481,011

35,522,474

1,046,777

57,958,537

144,695

1,954－

146,650

88,531

3,096

58,1181,875,622

44,134－

1,919,756

1,435,893

27,429483,862

222,723

9,855－

232,578

169,599

8,576

62,979189,014,043－－

189,014,043－－

189,014,043

247

2,035

247

2,035

－

－

2,035

283,869,293
457,860,533

927,029
1,611,086

247
373

284,796,075
459,471,246

37,216,499
56,770,352

1,085,880
1,973,876

247,579,575
402,700,894

11,801,831－－

11,801,831－－

11,801,831

5,849
11,807,680

－
－

－
－

5,849
11,807,680

1,886
1,886

389
389

3,962
11,805,793

Remarks(Note 1) The “Increase during the Period” is due to construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of construction completion for construction in progress and construction inprogress in trust.

4) Schedule of Other Specified Assets
Not applicable

45
67

Financial Statements

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

Balance as ofDecember 31,
2019(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJuly 1, 2019
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

2,000,000

2,000,000

－

1.030

Nov. 22, 2019

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000－

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

2,000,000

2,000,000

－

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

Twenty-third Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2018

3,000,000－

3,000,000

0.550

May 31, 2028

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

Jul. 31, 2019－－

5,000,000

0.570

Jul. 31, 2029

25,500,000

4,000,000

26,500,000

Total

Use

Remarks(Note 2)

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

Investment corporation
bonds

46

68

－

－

－

2,000,000

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

8,000,000

Japan Prime Realty Investment Corporation

6) Schedule of Loans Payable
LenderIncrease
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current
2019
2019
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Jul.3, 2020

Use

Remarks

Short-Term Loans Payable
Mizuho Bank Ltd. (Note 5)－

1,000,000

1,000,000－

0.170%

Mizuho Bank Ltd.

－

1,000,000－

1,000,000

0.169%

Jul.3, 2020

Resona Bank, Ltd.

2,000,000－

2,000,000－

0.169%

Jul. 5, 2019－

2,000,000

2,000,000－

0.165%

Jul.3, 2020

2,000,000

4,000,000

5,000,000

1,000,000
Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Resona Bank, Ltd. (Note 6)
Total

LenderIncrease
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current
2019
2019
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)(Note 4)

Use

Unsecured/
Unguaranteed

Remarks

Long-Term Loans Payable (Note 1)
Mizuho Bank Ltd.

2,000,000－

2,000,000－

1.027%

Dec. 5, 2019

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.351%

Mar. 30, 2021

Mizuho Bank Ltd.

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Mizuho Bank Ltd.

5,000,000－－

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

Mizuho Bank Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Mizuho Bank Ltd.

－2,000,000－

2,000,000

0.646%

Dec. 5, 2029

MUFG Bank, Ltd.

1,000,000－

1,000,000－

1.178%

Aug. 8, 2019

MUFG Bank, Ltd.

1,000,000－

1,000,000－

1.027%

Dec. 5, 2019

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.889%

Jun. 25, 2021

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.873%

Aug. 31, 2023

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

MUFG Bank, Ltd.

2,000,000－－

2,000,000

0.633%

Dec. 13, 2024

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.638%

Aug. 8, 2025

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.600%

Aug. 29, 2025

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.593%

Sep. 5, 2025

Sumitomo Mitsui Banking Corporation

1,000,000－

1,000,000－

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

3,000,000－－

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.351%

Mar. 30, 2021 (Note 4)

Sumitomo Mitsui Banking Corporation

4,000,000－－

4,000,000

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

1.033%

Jun. 27, 2022

Sumitomo Mitsui Banking Corporation－

1,000,000－

1,000,000

0.245%

Dec. 5, 2023

Development Bank of Japan, Inc.

820,000－－

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14, 2027

Development Bank of Japan, Inc.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Development Bank of Japan, Inc.

2,100,000－－

2,100,000

0.572%

Jun. 27, 2029

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.076%

Sep. 24, 2020

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.

1,000,000－－

1,000,000

0.843%

Jun. 14, 2027

Shinsei Bank, Ltd.

5,000,000－－

5,000,000

0.673%

Apr. 5, 2029

Shinkin Central Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

Shinkin Central Bank

3,000,000－－

3,000,000

0.663%

Jun. 4, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.447%

Dec. 27, 2027

Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

1.076%

Feb. 4, 2020

Mizuho Trust & Banking Co., Ltd.

4,000,000－－

4,000,000

0.309%

Mar. 30, 2020

Aozora Bank Ltd.

2,000,000－

2,000,000－

1.178%

Aug. 8, 2019

Aozora Bank Ltd.

1,000,000－－

1,000,000

1.069%

Sep. 24, 2020

Aozora Bank Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank Ltd.

2,000,000－－

2,000,000

0.553%

Feb. 25, 2025

Unsecured/
Unguaranteed4769

Financial Statements

LenderIncrease
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current
2019
2019
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Feb. 25, 2025

Use

Remarks

Long-Term Loans Payable (Note 1)
Aozora Bank Ltd.

1,000,000－－

1,000,000

0.574%

Aozora Bank Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.405%

Jun. 25, 2027

The Bank of Fukuoka, Ltd.

1,000,000－

1,000,000－

0.911%

Sep. 24, 2019

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.480%

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

－

1,000,000－

1,000,000

0.554%

Sep. 21, 2029

Meiji Yasuda Life Insurance Company

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

3,200,000－－

3,200,000

0.813%

Jun. 21, 2028

The Shinkumi Federation Bank

4,000,000－－

4,000,000

0.404%

Aug. 5, 2022

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.388%

Dec. 14, 2021

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

Sumitomo Life Insurance Company－

1,000,000－

1,000,000

0.583%

Jul. 20, 2029

Taiyo Life Insurance Company

1,000,000－－

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sep. 24, 2024

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.811%

Jun. 5, 2028

The Chugoku Bank, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.661%

Mar. 25, 2026

National Mutual Insurance Federation ofAgricultural Cooperatives

2,000,000

Sompo Japan Nipponkoa Insurance Inc.

－－

2,000,000

0.388%

2,000,000－－

2,000,000

0.759%

Dec. 25, 2023－

2,000,000－

2,000,000

0.225%

Nov. 22, 2023

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.489%

Oct. 9, 2020

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.209%

Sep. 24, 2021

Resona Bank, Ltd.

2,000,000－－

2,000,000

0.438%

Sep. 30, 2022

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.816%

Oct. 6, 2023

NTT FINANCE CORPORATION

1,000,000－－

1,000,000

0.408%

May 31, 2023

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

The Daishi Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Daido Life Insurance Company

1,000,000－－

1,000,000

0.316%

Dec. 25, 2023

The Chiba Bank, Ltd.

1,000,000－－

1,000,000

0.449%

Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000－－

1,000,000

0.299%

Jun. 27, 2023

The Hyakugo Bank, Ltd.

1,000,000－－

1,000,000

0.582%

Apr. 25, 2025

The Hiroshima Bank, Ltd.

1,000,000－－

1,000,000

0.396%

Nov. 21, 2022

Mitsui Sumitomo Insurance Company,
Limited－1,000,000－

1,000,000

0.310%

Oct. 2, 2026

Sumitomo Mitsui Trust Bank Limited

1,000,000－－

1,000,000

0.691%

Mar. 25, 2026

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

157,520,000

8,000,000

8,000,000

157,520,000

Nippon Life Insurance Company

Total(Note 1)

(Note 4)

Dec. 14, 2021

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheets are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable

21,000,000

19,820,000

18,500,000

21,000,000

Unsecured/
Unguaranteed

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

15,000,000(Note 2)

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

(Note 3)

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

arrangement paid to the above lenders are not included.
(Note 4)

Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.

(Note 5)

JPR made early repayment of the 1,000 million yen in short-term loans payable on October 4, 2019, which was borrowed on July 22, 2019 from Mizuho Bank,(Note 6)

JPR made early repayment of the 2,000 million yen in short-term loans payable on August 5, 2019, which was borrowed on July 5, 2019 from Resona Bank,

Ltd.
Ltd.

7048

Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report49
71Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
35th Fiscal Period(January 1, 2019 – June 30, 2019)36th Fiscal Period(July 1, 2019 – December 31, 2019)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
35th fiscal period (January 1, 2019 – June 30, 2019)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Interested
party

Tokyo
TatemonoCo., Ltd.

Real estatebusiness

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

3.17%

Transactions

Transaction
Amount(thousands ofyen)

Purchase ofreal estate

9,550,000－－

Sale of realestate5,800,000

－

－

－

－

－
Interest
expenses

22,136

Account

Current
portion of
long-termloans payable
Accruedexpenses

Balance at End
of Period(thousands ofyen)

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

36th fiscal period (July 1, 2019 – December 31, 2019)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

－

50

Transaction
Amount(thousands of
yen)

－

－

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

72

Transactions

Interest
expenses

22,503

Account

Current
portion of
long-termloans payable
Accruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
489

Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of December 31, 2019)Market capitalization: ¥439.8 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 36th Fiscal Period: ¥476,500

Low: ¥130,300 (October 28, 2008)

Trading Volume(units)
32,000

Trading Volume (units)

Unit Price (yen)Unit Price(yen)
580,000

28,000520,000

24,000460,000

20,000400,000

16,000340,000

12,000280,000

8,000

220,000

4,000

160,000

0Jun. 142002

Dec. 312003

Dec. 312004

Dec. 312005

Dec. 312006

Dec. 312007

Dec. 312008

Dec. 312009

Dec. 312010

Dec. 312011

Dec. 312012

Dec. 312013

Dec. 312014

Dec. 312015

Dec. 312016

Dec. 312017

Dec. 312018

100,000
Dec. 312019(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of December 31, 2019)
Other domestic
corporations

Foreign investors

475

177

(4.82%)(1.79%)

Financial institutions(including securities firms)

202(2.05%)

Individuals

Foreign investors

29,400 units

233,905 units(3.18%)(25.34%)

Number ofinvestment units
by investor type

Number ofunitholders
by investor type

9,841

Other domestic
corporations

83,231 units
Individuals

923,000
units(9.01%)

Financial institutions(including securities firms)

576,464 units

8,987(62.45%)(91.32%)(Note) The composition ratio is rounded down to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

73Introduction to the JPR Website

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

8955(Securities Code)JPR endeavors to conduct IR activities and information provision by offering a variety of contents on its
website in order to secure timely disclosure of information to investors and help them gain a better
understanding of JPR.
Point 1
Digest of Financial
Results

Point 2

Point 3

Initiatives on Sustainability

Property Overview

Point 2

Point 1

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

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

At least once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant to JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

Contact by Phone

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

Listing

Tokyo Stock Exchange (Securities Code: 8955)

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