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

Nineteenth Fiscal Period Business Report

January 1, 2011 - June 30, 2011
Japan Prime Realty Investment Corporation

Corporate Profile
Established on September 14, 2001, Japan Prime Realty Investment Corporation (JPR or theCompany) is a closed-end corporate fund that focuses on a diverse investment portfolio of
office and retail properties. Through its investment activities, JPR has been awarded high credit
ratings from rating agencies, reflecting the Company's high-quality portfolio, earnings stability
and sound financial standing. As of June 30, 2011, JPR had an investment portfolio totaling
341.58 billion yen on an acquisition basis, 493 tenants and 56 properties, and is recognized as
one of the top diversified REITs in Japan.

Contents Investment Highlights

Message to Our Unitholders
Account Highlights

Investment Unit Status

New Acquisitions during the 19th Fiscal Period and After
Portfolio Topics

Property Portfolio

Beyond the Disaster: JPR’s Strengths Hold True
Overview of Portfolio Properties

Characteristics and Corporate History
Overview of the Asset Manager

Overview of Asset Management

Overview of the Investment Corporation

Status of JPR's Assets under Management

Capital Expenditures of Owned Real Estate
Expenses and Liabilities

Acquisitions and Sales during the 19th Fiscal Period
Overview of Accounting

Overview of Investment Trust Beneficiary Certificates of JPR
OtherBalance Sheets

Statements of Income and Retained Earnings
Statements of Unitholders' Equity
Notes to Financial Statements

Report of Independent Auditors

Statements of Cash Flows (Information Only)
JPR Investment Policies
Investor Information

1
2
3
4
5
6
8
14
15
22
24
26
32
34
38
39
41
43
43
44
45
47
48
49
59
60
62
72

Investment Highlights
Portfolio Overview
Top-ranked diversified J-REIT
Focusing on high-quality office buildings and high-profile retail properties
Sponsored by major real estate developers, a general contractor, financial institutions
Providing support in property pipeline and financial aspects through expertise inreal estate, construction and finance

Growth Strategies
Investing with emphasis on properties with strong potential using diversified acquisition
methods
Maintaining high occupancy level through reinforcing the competitiveness of the properties
Maintaining conservative financial operations and maintaining a stable financial foundation

Targets
Asset size exceeding 500 billion yen
Raise cash distribution per unit

1Message to Our Unitholders
Thank you for your continued loyal patronage of Japan Prime Realty Investment Corporation (JPR).
We at JPR would like to express our heartfelt condolences to all those affected by the Great East Japan
Earthquake in March 2011, and wish for the quick recovery of the affected areas.
As we settled the 19th fiscal period (January 1, 2011 – June 30, 2011), allow us provide you, ourunitholders, with an overview of the asset management and financial results of JPR for the period.
First, in terms of the portfolio, JPR conducted no acquisition or sale of properties during the fiscal period,
partly because the real estate transaction market becoming stagnant due to the impact of the Great East
Japan Earthquake and other factors. Accordingly, JPR’s portfolio remained unchanged from the end of theprevious fiscal period, consisting of 56 properties or 341.5 billion yen on an acquisition price basis as of theend of the 19th fiscal period.
In financing, JPR has continued to secure a stable financial standing through such measures as refinancing
of borrowings to long-term, fixed-rate borrowings with an aim to avoid the risk of interest rate fluctuations,while paying attention to the diversification of repayment and redemption dates, etc. As a result, thebalance of total outstanding interest-bearing debt as of the end of the fiscal period was 162.7 billion yen,with the LTV (ratio of interest-bearing debt to total assets at end of period) being 45.2%.
As for the financial results of the 19th fiscal period, although 64 million yen in losses accompanying
the Great East Japan Earthquake was recorded as extraordinary loss, rental revenues and other earnings
increased slightly period-on-period as we focused on raising the occupancy rates of existing properties
and other endeavors. This led JPR to post 11,529 million yen in operating revenue, 4,075 million yen in
ordinary income and 4,010 million yen in net income.
As a result, the cash distribution per unit for the 19th fiscal period came to 5,611 yen.
JPR will continue working with Tokyo Realty Investment Management, Inc., our asset management company,
to realize stable growth of our portfolio over the medium to long term by conducting prudent and solid
asset management. With these efforts and commitment, we are dedicated to meet the expectations of ourunitholders.
We ask for your continued understanding and support of our operations.

Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation2

Account Highlights(All amounts in millions of yen unless otherwise stated)

15th Fiscal Period
endedJune 2009

16th Fiscal Period
ended
December 200917th Fiscal Period
endedJune 2010

18th Fiscal Period
ended
December 2010

19th Fiscal Period
endedJune 2011

Operating revenues

14,33011,493

12,314

11,87011,529Ordinary income

5,572

4,333

4,964

4,039

4,075

Net income

2,331

4,332

4,963

4,039

4,010

Total cash distributions

2,331

4,333

4,840

4,061

4,011

Total assets

329,163

332,380

358,339

360,904

360,004

Total unitholders' equity

159,057

161,058

176,303

175,502

175,452

48.3

48.5

49.2

48.6

48.7

Unitholders' equity per unit (yen)254,492

257,693

246,578

245,458

245,387

Cash distribution per unit (yen)

3,731

6,933

6,770

5,680

5,611

Equity ratio (%)

Operating Revenues and Net Income

Total Assets and Total Unitholders' Equity

400,000

15,000Cash Distribution per Unit

8,000

350,000
12,000300,000

6,000

250,000

9,000

200,000
6,000

4,000

150,000

100,000

2,000

3,000
50,000

0

15th
16th
17th
18th
19th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

0

15th
16th
17th
18th
19th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Operating revenues (million yen)

Total assets (million yen)

Operating revenues (million yen)

Total unitholders' equity (million yen)

0

15th
16th
17th
18th
19th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Cash Distribution

3

Investment Unit Status
Historical Unit Price
Trading
Volume32,00028,00024,000Unit
Price

Trading Volume (units)
Unit Price (yen)As of August 4, 2011Market capitalization: ¥147.2 billion
High: ¥564,000 (May 7, 2007)
Low: ¥130,300 (October 28, 2008)
Unit price at end of 19th Fiscal Period:¥213,000 ( June 30, 2011 )

580,000
520,000
POOﬀering: ¥449,820

460,000

20,000400,000

16,000340,000

12,000POOﬀering: ¥237,160

ListedTokyo Stock ExchangeOﬀering: ¥200,000

8,000

PO
Oﬀering: ¥272,440

280,000
220,000

POOﬀering: ¥168,101

4,000

160,000

0

Jan
Ju
Jan
Ju
Jan
Ju
Jan
Ju
Jan
Ju
Jan
Ju
Ju
Au100,000
Jan
Jan
Ju
Jan
ne July
ly
ly
ly
ly
ly
ly
ly
ly
g.
.6
.5
.4
.4
.4
.4
.5
.4
.4
1
1
1
1
1
1
1
1
14 1
4
,2
,
,
,
,
,
,
.
,
2
2
2
2
2
2
2
2
,2
00
00
00
00
00
01
00
01
00
00
3
4
5
6
7
1
9
0
8
2

Ju

(Note) Unit prices are based on closing prices.

Breakdown of Unitholders at End of Period
Units

700,000

600,000

20

20

625,000 units

625,000 units

7.72%
48,270 units

8.08%
50,560 units12.33%
77,100 units12.35%
77,207 units

20

11

/7/

1

06 715,000 0units
7/7
/7/
/2
3

715,000 units

715,000 units

7.56%
54,073 units

7.44%
53,251 units

7.33%
52,430 units

11.58%
82,846 units

11.55%
82,627 units

11.46%
81,973 units

500,000

Number ofUnitholders
28,00024,00020,000

Jun
Jun
Jun
D
D
D
Jun
D
Jun
D
D
Jun
D
Jun
D
D
Jun
Jun
J
e 2 ec. 2e 2 ec. 2e2e 2 ec. 2e 2 ec. 2e 2 ec. 2e 2 ec. 2 une 2 ec. 2e 2 ec. 2e 2 ec. 2
003
010
005
007
002
009
004
006
008
002
004
011
003
005
007
009
006
008
010

400,000

24.86%
155,403 units

26.43%
165,224 units

28.81%
206,019 units

27.97%
200,030 units

25.27%
180,711 units

300,000

200,000

12,00055.07%
344,227 units

53.12%
332,009 units

52.03%
372,062 units

53.01%
379,092 units

55.91%
399,886 units

100,000

0

8,000

4,000

15th Fiscal Period

16th Fiscal Period

Financial Institutions(including securities ﬁrms)

4

16,00017th Fiscal Period

ForeignInvestors

18th Fiscal Period

Other Domestic
Corporations(Note) The composition ratio is rounded to two decimal places.

Individuals

19th Fiscal Period0

Number of Individual
Investors

New Acquisitions during the 19th Fiscal Period and After
Property to be Acquired in the 20th Fiscal Period

A 22

Ginza Sanwa Bldg.

Location

Chuo Ward, Tokyo

Acquisition Date

August 29, 2011

Acquisition Price￥3,400 million

Site Area

1,119.27m2

Total Floor Space

8,851.00 m2

Structure

SRC

Floors

B2/9F

Completed

October 1, 1982

*Land: The Premises of the property is divided into 4 sections.
One of these sections is to be owned by JPR (64.72%, theother owner is Matsuya Co., Ltd., owning 35.28%). The other 3
sections are owned by Matsuya Co., Ltd. and Japan Real Estate
Investment Corporation.
JPR owns land use rights for 18.35% of the entire premises.
*Building: The building is divided into 2 sectional ownershiprights. One of these sectional ownership rights is to be owned
by JPR (35.40%, other owners are Japan Real Estate Investment
Corporation (45.31%) and Matsuya Co., Ltd. (19.29%)). The
remaining sectional ownership right is co-owned by MatsuyaCo., Ltd. and Japan Real Estate Investment Corporation.
JPR owns 18.35 % of the shared area of the building.

5

Portfolio Topics
Portfolio Growth
Occupancy rate (%)

100.0
90.0
Total acquisition priceTotal leasable ﬂoor space

Total acquisition
price (billion yen)

400
350
300
250
200
150
100
50

0

End ofNov.
2001

End ofJun.
2001

End ofDec.
2002

End ofJun.
2003

End ofDec.
2003

End ofJun.
2004

End ofJun.
2005

End ofDec.
2005

End ofJun.
2006

Total acquisition
price (billion yen)

40.73

92.18

94.59

125.79139.64163.65179.62

197.65202.66209.22

Total leasable
floor space (m)94,935.49

162,734.50

168,987.78

201,808.72

218,734.67

256,329.13

273,330.52

281,408.97

308,205.26

315,156.84

Occupancy rate
(%)

96.3

94.1

93.4

93.5

92.7

93.2

95.1

95.4

97.2

98.0

Properties

13

25

27

30

32

38

42

42

42

44

Total numberof tenants

133

281

311

324

357

437

496

459

441

462

(Note 1)

When a single tenant leases multiple rooms in the same property, the tenant is counted as one.
If the leased rooms are in multiple buildings, the tenant is counted in plural.

(Note 2)Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees.
Accordingly, the leasable floor space of the building as it relates to JPR's ownership is calculated by multiplying the total contracted areas of offices, shops
and warehouses the management company can sublease to sub-lessees by the rent allocation ratio of JPR (39.70457% up to the end of June 2008 and with the additional
acquisition in September 2008, 40.31465% from the end of December 2008) to arrive at the rent allocated to JPR.
The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent allocation ratio.
Each figure has been rounded to the second decimal point.
The number of sub-lessees of the Shinjuku Square Tower is also regarded as the number of tenants.

Portfolio Diversification by Region
Value breakdown by acquisition price

17.0%(¥58,227 million)

Tokyo CBDs

Greater Tokyo(¥167,126 million)

34.0%

Tokyo CBDs

Value breakdownby monthly rental revenue at period end
Other Cities

Other Cities

48.9%

18.1%

(¥335 million)
Greater Tokyo

39.6%

Tokyo CBDs

42.3%(¥784 million)

Value breakdown by acquisition price

Value breakdownby leased floor space at period end
Other Cities

Tokyo CBDs

(108,581.89 m2)(119,827.88 m2)

27.0%

Office buildings

Value breakdownby monthly rental revenue at period end

30.3%(¥246,384 million)(¥482 million)

Retail properties
Value breakdownby leased floor space at period end

Retail properties

26.0%

Oﬃce buildings

29.8%

Greater Tokyo(173,506.21 m2)

Retail properties

Retail properties

27.9%

Other Cities

43.2%

Portfolio Diversification by Asset Class(¥95,200 million)

Greater Tokyo(¥735 million)(¥116,231 million)

6

End ofDec.
2004

Oﬃce buildings

74.0%(¥1,372 million)

39.8%(159,790.16 m2)

Oﬃce buildings

60.2%(242,125.82 m2)

Total leasable
ﬂoor space (m2 )

480,000
420,000
360,000
300,000
240,000
180,000
120,000
60,000End ofDec.
2006

End ofJun.
2007

End ofDec.
2007

End ofJun.
2008

End ofDec.
2008

End ofJun.
2009

End ofDec.
2009

End ofJun.
2010

End ofDec.
2010

End ofJun.
2011

222.48245.39251.90275.10280.61

299.41

310.61331.28341.58341.58337,382.05

361,574.77

373,609.99

383,491.03

383,215.57

393,532.31

400,751.87

410,326.04

420,544.51

421,371.51

98.6

99.0

98.4

97.5

96.4

96.8

96.4

95.5

93.5

94.7

46

48

49

50

52

51

53

55

56

56

479

491

517

537

499

476

476

460

479

493

0

(Note 3) The tenants of Shinjuku Center Building, Rise Arena Bldg. and Kawasaki Dice Building have sublet space to a sub-lessee and a lease agreement has been executed where therent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the total leasable floor space, total leased floor space and occupancy rate
entered for these buildings are the figures concerning the sub-lessee of the tenant and the number of sub-lessees is deemed to be the number of tenants.
(Note 4) In the event that the contracted area and the area based on which the rent is calculated differ, the situation was handled by making the latter the leased floor space through thefiscal period ended December 2006. Since the period ended June 2007, the contracted area has been made the leased area.

Major Tenants#(As of June 30, 2011)

TenantName of Property

Leased floor area atperiod end (m2)Percentage of totalleased floor area atperiod end

1

ABC Development Corporation

Housing Design Center Kobe

35,444.13

8.8%

2

The Seiyu, Ltd.

Tanashi ASTA

31,121.71

7.7%

3Tokyo Tatemono Co., Ltd.

Shinjuku Center Building,
Arca East, Kawasaki Dice Bldg.

22,978.11

5.7%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.9%

5The Loft Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.6%

6

Shinjuku Square Tower Management
Co., Ltd.

Shinjuku Square Tower

11,267.72

2.8%

7Olympic Corporation

Musashiurawa Shopping Square

9,558.51

2.4%

8

Tower Records Japan, Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

2.0%

9Sompo Japan Insurance Inc.

Kawaguchi Center Bldg.,
Yume-ooka Office Tower,
Sompo Japan Sendai Bldg.,
Sompo Japan Wakayama Bldg.

7,883.30

2.0%

10

Yuraku Real Estate Co., Ltd.

Rise Arena Bldg.

6,023.39

1.5%(Note) The areas of co-owned buildings corresponding to the portions owned by JPR are indicated.

7

Property Portfolio

A Tokyo CBDs

Ueno

B-7

Shinjuku Ward

A-14
A-11

Shinjuku

A-12
A-4

A-5
A-9 Chiyoda
A-17 Ward
A-4

Ichigaya

A-21

Shibuya Ward

A-3
A-18

A-20
A-3

Kinshicho

A-13
A-1
A-8
A-2
A-19

Tokyo

Harajuku

A-1

B-1 B-11

A-5 Chuo Ward

Shibuya

A-1 Kanematsu Bldg.
A-2 Kanematsu Bldg. Annex
A-3 JPR Ningyo-cho Bldg.
A-4 Shin-Kojimachi Bldg.
A-5 JPR Crest Takebashi Bldg.
A-6 MS Shibaura Bldg.
A-7 Gotanda First Bldg.
A-8 Fukuoka Bldg.
A-9 JPR Ichigaya Bldg.
A-10 Oval Court Ohsaki Mark West
A-11 Shinjuku Square Tower
A-12 BYGS Shinjuku Bldg.
A-13 Across Shinkawa Bldg. Annex
A-14 Shinjuku Center Bldg.

Minato Ward

A-2

Tamachi

A-15

A-6

Shinagawa

GotandaA-7

A-10

Ohsaki

A-16

Shinagawa Ward

A-15 Minami Azabu Bldg.
A-16 Shinagawa Canal Bldg.
A-17 Rokubancho Bldg.
A-18 JPR Harajuku Bldg. (Note)
A-19 Tokyo Tatemono Kyobashi Bldg.
A-20 JPR Nihonbashi-horidome Bldg.

(Note)

A-21 JPR Sendagaya Bldg.
A-1 JPR Shibuya Tower Records Bldg.
A-2 JPR Daikanyama
A-3 JPR Jingumae 432
A-4 Shinjuku Sanchome East Bldg.
A-5 Yurakucho Ekimae Bldg.

(Yurakucho Itocia)(Note) Property names were changed from Ryoshin Harajuku Building to JPR Harajuku Building on March 1, 2011
and from TK Horidome Building to JPR Nihonbashi-horidome Building on January 1, 2011, respectively.

B

B-5

Minamiurawa

Musashiurawa

Greater Tokyo

Kawaguchi

B-6
B-3

SAITAMA

B-8

TOKYO
Tanashi

Ikebukuro

B-1

CHIBA

B-9 Ueno
B-7

Shinjuku

Tachikawa

Tokyo

B-11
B-1

Kinshicho

Shibuya
Chiba

ShinagawaB-2

Musashikosugi

B-4
KANAGAWA

Kawasaki

B-5
B-12
B-10
8

Musashikosugi(New Station)

B-6

Shin-Yokohama

Yokohama
Nihon-Odori

B-3

Kamiooka

B-1 Arca East
B-2 JPR Chiba Bldg.
B-3 JPR Yokohama Nihon Odori Bldg.
B-5 Shinyokohama 2nd Center Bldg.
B-6 Kawaguchi Center Bldg.
B-7 JPR Ueno East Bldg.
B-8 Tachikawa Business Center Bldg.
B-9 Rise Arena Bldg.
B-10 Yume-ooka Office Tower

B-11 Olinas Tower
B-12 Tokyo Tatemono Yokohama Bldg.
B-1 Tanashi ASTA
B-3 Cupo-la Main Bldg.
B-4 JPR Musashikosugi Bldg.
B-5 Musashiurawa Shopping Square
B-6 Kawasaki Dice Bldg.

C Other Cities
C-1

Niigata Ekinan Center 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-18 JPR Hakata-chuo Bldg.
C-19 JPR Nagoya Fushimi Bldg.
C-4

Housing Design Center Kobe

SENDAIC-12

NIIGATA

C-1

OSAKA
See below
KOBE

C-4

FUKUOKA

C-7
C-14
C-18

NAGOYA

C-19

WAKAYAMA

C-13

NAHA

C-9

C

C-1
C-5
Other Cities(Osaka City) Hankyu-Umeda

Chiyoda Ward
Chuo Ward
Minato Ward

Osaka

Tokyo CBDs

C-17

Shinjuku Ward
Shinagawa Ward
Shibuya Ward

Kitahama

Yodoyabashi

All other areas of Tokyo

C-4

Greater Tokyo

and Chiba, Kanagawa andSaitama Prefectures

HonmachiC-4

Tokyo Tatemono Honmachi Bldg.

C-17 JPR Dojima Bldg.
C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.

C-3
Shinsaibashi

Nanba

Other Cities

All other areas in Japan

9

Location
Category

Tokyo
CBDs

Asset
Class

No.

OfficeA-1

Kanematsu Bldg.

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

1989.122001.11

OfficeA-4

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

1984.10

2001.11
2002.112004.11

OfficeA-5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

1999.92002.6

OfficeA-6

MS Shibaura Bldg.

Minato Ward, Tokyo

1988.2

2003.3

OfficeA-7

Gotanda First Bldg.

Shinagawa Ward, Tokyo

1989.7

2003.7

OfficeA-8

Fukuoka Bldg.

Chuo Ward, Tokyo

1990.5

2003.10
2005.4

OfficeA-9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

1989.3

2004.5

OfficeA-10

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo

2001.6

2004.6

OfficeA-11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

1994.10

2004.72008.9

OfficeA-12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1985.4

2004.112005.42010.7

OfficeA-13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

1994.6

2004.11

OfficeA-14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1979.10

2008.3

Office

A-15

Minami Azabu Bldg.

Minato Ward, Tokyo

1992.6

2008.7

Office

A-16

Shinagawa Canal Bldg.

Minato Ward, Tokyo

2008.72008.12

OfficeA-17

Rokubancho Bldg.

Chiyoda Ward, Tokyo

1991.10

2009.12

OfficeA-18

JPR Harajuku Bldg.

Shibuya Ward, Tokyo

1989.32009.12

Office

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo Ward, Tokyo

1981.1

2010.2

OfficeA-20

JPR Nihonbashi-horidome Bldg.

Chuo Ward, Tokyo

2002.6

2010.3

OfficeA-21

JPR Sendagaya Bldg.

Shibuya Ward, Tokyo

2009.52010.5RetailA-1

JPR Shibuya Tower Records Bldg. Shibuya Ward, Tokyo

1992.2

2003.6

RetailA-2

JPR Daikanyama

Shibuya Ward, Tokyo

2002.7

2004.10RetailA-3

JPR Jingumae 432

Shibuya Ward, Tokyo

2006.2

2006.3

Property Name

Location

Completed Acquired

Retail

A-4

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

2007.1

2007.32008.4RetailA-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda Ward, Tokyo

2007.10

2008.8Subtotal (26 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA
do not include the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

10

(As of June 30 , 2011)

Acquisition
Price (1)(millionsof yen)Percentage
of Total(2)

Ownership(3) (%)

Total Leasable
Floor Space(m2 )(JPR's portion)

Site Area(m2)

Occupancy
Rate (2)RentalRevenue(thousandsof yen)No. ofTenants

16,2764.8

79.4

1,751.13

7,994.02

90.0

7313,381

2,874

0.8

79.4

679.06

2,291.13

100.0

186,544

2,100

0.6

100.0

550.06

2,796.16

59.6

3

70,366

2,107.58
901.36312.53

100.0
67.4
100.0

10

73,455
20,495
12,312

2,420

0.7

77.2

657.80

4,000

1.2

100.0

636.903,265.34

94.9

8

130,972

11,2003.3

58.0

8,992.18

14,470.72

100.0

8

513,295

2,920

0.9

59.6

1,551.19

4,243.58

100.0

2

131,459

2,920

0.9

26.2

1,302.17

1,250.06
687.34

100.0
100.0

1

87,35638,9733,321.47

1,937.40
5,100

1.5

100.0

1,058.04

4,224.96

100.0

9153,058

3,500

1.0

23.9

4,006.00

4,088.44

100.0

3

187,748

10,1803.0

38.8

8,409.52

10,982.03
168.75

83.7
83.7

21

218,130
3,351

11,150.78
15,121

4.4

100.0

3,522.46

15,202.86

85.1

21

538,412

710

0.2

35.5

858.481,253.39

80.1

3

43,10521,000

6.1

8.6

14,917.11

8,861.34

90.0

24457,860

3,760

1.1

100.0

778.093,405.73

100.0

1(Note 5)

1,870

0.5

45.6

828.821,700.57

100.0

467,363

2,800

0.8

100.0

716.952,488.36

100.0

1(Note 5)

8,400

2.5

100.0

1,205.07

4,760.1388.5

7243,048

5,250

1.5

100.0

547.103,499.31100.02(Note 5)

5,100

1.5

100.0

937.595,299.86

100.0

7

178,874

15,0504.4

100.0

2,217.49

6,177.74

94.1

5

127,304

12,0003.5

100.0

1,010.47

8,076.85

100.0

1345,576

2,160

0.6

100.0

277.12651.29100.0

441,297

4,275

1.3

100.0

198.101,027.33

89.8

562,498

2,740

0.8

12.5

2,578.69

2,347.81

100.0

174,499

3,400

1.0

1.9

6,808.12

1,101.92

100.0

1(Note 5)

167,126

48.9

―

―

125,638.49――

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of othersectional owners, etc. except for the following properties:
The above site area indicates the area of the property and Trinity Shibaura that has been developed
MS Shibaura Building:in an integrated manner.
Shinjuku Square Tower : The above site area and total leasable floor space indicate the area of the entire redevelopment
project.
Rise Arena Building:
The above site area and total leasable floor space indicate the site area and floor space of the entire
redevelopment project including the residential tower.
Olinas Tower:
The above site area and total leasable floor space indicate the area including the commercial
building and the residential building.
Cupo-la Main Bldg.:
The above site area indicates the area of the entire redevelopment project.
(5) The portion owned by JPR are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.

11

Location
Category

Greater
Tokyo

Asset
Class

No.

OfficeB-1

Arca Eazast

Sumida Ward, Tokyo

1997.3

2001.11

OfficeB-2

JPR Chiba Bldg.

Chiba City, Chiba

1991.1

2001.12

OfficeB-3

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa

1989.10

2001.11

OfficeB-5

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

1991.8

2002.9

OfficeB-6

Kawaguchi Center Bldg.

Kawaguchi City, Saitama

1994.2

2004.2

OfficeB-7

JPR Ueno East Bldg.

Taito Ward, Tokyo

1992.10

2004.3

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

1994.122005.92007.2

OfficeB-9

Rise Arena Bldg.

Toshima Ward, Tokyo

2007.1

2007.3

OfficeB-10

Yume-ooka Office Tower

Yokohama City, Kanagawa

1997.32007.7

OfficeB-11

Olinas Tower

Sumida Ward, Tokyo

2006.2

2009.6

OfficeB-12

Tokyo Tatemono Yokohama Bldg.

Yokohama City, Kanagawa

1981.52010.12RetailB-1

Tanashi ASTA

Nishitokyo City, Tokyo

1995.2

2001.11RetailB-3

Cupo-la Main Bldg.

Kawaguchi City, Saitama

2006.1

2006.3Retail

B-4

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa

1983.32006.9Retail

B-5

Musashiurawa Shopping Square

Saitama City, Saitama

2005.10

2007.3RetailB-6

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

2003.82007.4

OfficeC-1

Niigata Ekinan Center Bldg.

Niigata City, Niigata

1996.3

2001.11

OfficeC-4

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

1970.2

2001.112001.11

Property Name

Location

Completed Acquired

Subtotal (16 Properties)

Other
Cities

OfficeC-7

JPR Hakata Bldg.

Fukuoka City, Fukuoka

1985.6
2003.11

OfficeC-9

JPR Naha Bldg.

Naha City, Okinawa

1991.10

2001.11

OfficeC-12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

1997.12

2002.6

OfficeC-13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

1996.7

2002.6

OfficeC-14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

2000.7

2002.6

OfficeC-17

JPR Dojima Bldg.

Osaka City, Osaka

1993.10

2004.1

OfficeC-18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

1993.2

2004.6

OfficeC-19

JPR Nagoya Fushimi Bldg.

Nagoya City, Aichi

1991.32005.3RetailC-1

JPR Umeda Loft Bldg.

Osaka City, Osaka

1990.4

2003.5-7
2005.5RetailC-3

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

2003.2
2005.1RetailC-4

Housing Design Center Kobe

Kobe City, Hyogo

1994.6

2005.9RetailC-5

JPR Chayamachi Bldg.

Osaka City, Osaka

1994.6

2006.8Subtotal (14 Properties)
Total (56 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses indicatesratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA do not include
the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

12

(As of June 30 , 2011)

Acquisition
Price (1)(millionsof yen)Percentage
of Total(2)

Ownership(3) (%)

Total Leasable
Floor Space(m2 )(JPR's portion)

Site Area(m2)

Occupancy
Rate (2)RentalRevenue(thousandsof yen)No. ofTenants

5,880

1.7

38.3

3,755.01

7,022.76

100.0

6258,569

2,350

0.7

100.0

1,382.35

5,545.03

84.6

30

114,724

2,927

0.9

100.0

1,100.59

6,066.53

97.2

13

126,344

920

0.3

50.0

841.712,642.38

85.5

1250,639

8,100

2.4

86.5

4,524.61

15,461.98

82.1

37

404,174

3,250

1.0

100.0

1,242.97

6,490.05

71.8

5

168,553

100.0
96.1

17

60,54388,599

3,188

0.9

47.9

2,047.22

1,747.13
2,983.91
4,731.04

5,831

1.7

25.2

9,377.28

6,023.39

100.0

1

239,567

6,510

1.9

48.8

12,011.00

12,010.37

88.4

34

315,801

31,3009.2

23.3

27,335.29

23,987.40

98.6

12

1,153,362

7,000

2.0

100.0

1,110.28

6,494.09

100.0

13

304,889

10,2003.0

43.6

12,326.30

31,121.71

100.0

1

596,400

2,100

0.6

16.7

15,008.28

5,963.00

100.0

1(Note 5)

7,260

2.1

100.0

4,761.62

19,740.95

100.0

1

(Note 5)

4,335

1.3

50.0

8,317.99

14,960.69

100.0

3

129,061

15,0804.4

46.6

4,475.45

13,066.69

98.2

19

472,271

116,231

34.0

―

―

181,328.06

―

2,140

0.6

32.9

2,706.99

5,326.88

99.3

8

132,562

4,150

1.2

72.0

1,432.64

7,162.60

78.0

10

52,737

2,900

0.8

100.0

1,214.63

6,581.15

98.9

28

150,528

1,560

0.5

100.0

959.87

3,946.41

87.0

16

91,347

3,150

0.9

100.0

1,895.67

7,128.81

100.0

12

183,486

1,670

0.5

100.0

1,128.45

4,874.91

96.8

16

120,168

2,810

0.8

52.2

1,164.39

3,257.73

79.4

12

91,660

2,140

0.6

100.0

668.113,930.21

89.0

8

107,630

1,920

0.6

100.0

680.633,290.42

100.0

578,615

4,137

1.2

100.0

1,610.38

7,086.37

66.6

3

65,472

13,0003.8

100.0

3,518.68

18,586.97

100.0

1

402,411

5,430

1.6

100.0

609.315,303.98

100.0

1(Note 5)

7,220

2.1

100.0

3,994.47

35,444.13

100.0

1

(Note 5)

6,000

1.8

100.0

592.452,484.39

100.0

7145,268

58,22717.0――

114,404.96―

341,584

100.0

421,371.51

94.7

493

11,529,624――

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of otherowners, etc. except for the following properties:
MS Shibaura Building: The above site area indicates the area of the property and Trinity Shibaura that has been developedin an integrated manner.
Shinjuku Square Tower: The above site area and total leasable floor space indicate the area of the entire
redevelopment project.
Rise Arena Building:
The above site area and total leasable floor space indicate the site area and floor space of the entire
redevelopment project including the residential tower.
Cupo-la Main Bldg.:
The above site area indicates the area of the entire redevelopment project.
Olinas Tower:
The above site area and total floor space indicate the area
for the entire property including retail and residential towers.
(5) The portion owned by JPR is leased to a single tenant.
JPR was unable to obtain the tenants' approval to disclose rental information.
(6) For JPR Hakata Bldg. the upper figures are for the office building portion and the lower figures are for the parking lot portion.
In addition, the acquisition price does not include the acquisition of the parking lot portion.

13

Beyond the Disaster: JPR’s Strengths Hold True
The Great East Japan Earthquake in March 2011 had a significant impact on the Japanese economy, which is
now returning to a recovery track. However, the impact on the operations of JPR was fairly limited.

[Impact on JPR]
No damage that will materially impact JPR’s
operating results

Even the Sompo Japan Sendai Bldg., located near the
epicenter, had only slight physical damage including
wall cracks and partial falling of ceiling boards.

Repair costs incurred at 30 properties out of
56 as a result of the earthquake

JPR recorded 64 million yen in total for repairingdamaged interiors and facilities as an extraordinary
loss for the 19th fiscal period, but this had no major
impact on overall performance.

Great East Japan Earthquake
I
Investmenttt St
Standardsd d
JPR only invests inbuildings that meet newearthquake-resistancestandards or for which
earthquake-resistancereinforcement work has
been completed

L
Low
Portfolio
P tf li PML

JPR’s Strengths
Help Minimize
Damage from the
Earthquake

JPR’s portfolio PML*
against earthquakes is3.5% (as of the end ofJune 2011), fairly highamong J-REITs against
the potential impact ofdisasters.
*See page 64 for PML.

[Measures Anticipating Disasters]
JPR conducted anti-seismic work for long-period earthquake ground motion at Shinjuku Center Building in
2009, which proved effective against the Great East Japan Earthquake.

A long-period earthquake ground motion means
vibrations with a cycle of motion ranging fromabout 2 to 20 seconds. Such motion particularly
affects skyscrapers, even if they are located
far from the epicenter, and thus has become amajor issue in anti-seismic measures. The Great
East Japan Earthquake caused a long-period
earthquake ground motion, and large vibrations
were observed on upper floors of ultra-skyscrapers
in Tokyo. The anti-seismic work at Shinjuku Center
Building (installation of 288 seismic dampers on
24 floors in total) helped reduce the amplitude
and duration of vibrations at the building.

14

Shinjuku Center
Building
Newly installed seismic damper

Overview of Portfolio Properties
A 1

Kanematsu Bldg.

A 2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥16,276 million
1,751.13 m2￥2,874 million
679.06 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

4,351.46 m2

14,995.09 m2

S/RC/SRC B2/13F
February 1993

A 3

JPR Ningyo-cho Bldg.

February 1993

A 4

Shin-Kojimachi Bldg.

Chuo Ward, Tokyo

Chiyoda Ward, Tokyo
Acquisition Price

Acquisition Price
Site Area

SRC B1/8F￥2,100 million

Site Area2550.06 m￥2,420 million
657.80 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

5,152.98 m2

4,117.70 m2

SRC/RC B1/8F

December 1989

A 5

JPR Crest Takebashi Bldg.

SRC B1/9F

October 1984

A 6

MS Shibaura Bldg.

Chiyoda Ward, Tokyo

Minato Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥11,200 million￥4,000 million
636.90 m2

8,992.18 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

31,020.21 m2

4,790.68 m2

Completed

SRC/RC/S B2/13F

SRC B1/9F

Completed

September 1999

A 7

Gotanda First Bldg.

A 8

Fukuoka Bldg.

Shinagawa Ward, Tokyo

Acquisition Price
Site Area

February 1988

￥2,920 million
2

1,551.19 m

Chuo Ward, Tokyo
Acquisition Price
Site Area￥2,920 million
1,302.17 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

10,553.34 m2

SRC/RC B2/11F
July 1989

11,627.74 m2
SRC B2/10F
May 1990

15A 9

JPR Ichigaya Bldg.

A 10

Oval Court Ohsaki Mark West

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥5,100 million
1,058.04 m2￥3,500 million
4,006.00 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

28,575.80 m2

5,888.82 m2

Completed

SRC B1/9F

Completed

March 1989

A 11

Shinjuku Square Tower

S/SRC B2/17F
June 2001

A 12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price￥10,180 million

Site Area

Acquisition Price￥15,121 million

28,409.52 m

Site Area(entire redevelopment project)

Total Floor Space

78,796.00 m

3,522.46 m2

Total Floor Space2

25,733.10 m2(entire redevelopment project)

Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B4/30F

April 1985

October 1994

A 13

Across Shinkawa Bldg. Annex

A 14

Shinjuku Center Bldg.

Chuo Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥710 million
858.48 m2￥21,000 million
14,917.11 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

5,535.90 m2

S/SRC B2/10F
June 1994

A 15

Minami Azabu Building

Acquisition Price
Site Area

176,607.89 m2

SRC/RC/S B5/54F
October 1979

A 16

Shinagawa Canal Building

Minato Ward, Tokyo

￥3,760 million
2778.09 m

Minato Ward, Tokyo

Acquisition Price
Site Area￥1,870 million
828.82 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

4,570.63 m2

Completed

16

SRC B2/14F

S

9F

June 1992

5,216.21 m2

Completed

S

B1/8F
July 2008

A 17

Rokubancho Building

Chiyoda Ward, Tokyo

Acquisition Price
Site Area

A 18

JPR Harajuku Building￥2,800 million
2716.95 m

Shibuya Ward, Tokyo

Acquisition Price
Site Area￥8,400 million
1,205.07 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

4,205.09 m2

Completed

SRC B3/7F

October 1991

A 19

Tokyo Tatemono Kyobashi Building

6,466.94 m2

Completed

March 1989

A 20

JPR Nihonbashi-horidome Building

Chuo Ward, Tokyo

Acquisition Price
Site Area

SRC B1/9F￥5,250 million
2547.10 m

Chuo Ward, Tokyo

Acquisition Price
Site Area￥5,100 million
937.59 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

4,419.79 m2

SRC/S B1/10F
January 1981

SRC B1/9F
June 2002

JPR Shibuya Tower Records Bldg.

A 21

JPR Sendagaya Building

7,190.82 m2

A(Retail)

Shibuya Ward, Tokyo

Shibuya Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥15,050 million
2,217.49 m2￥12,000 million
1,010.47 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

7,683.19 m2

CompletedS

8F

May 2009

A

JPR Daikanyama (Retail)2

Acquisition Price
Site Area￥2,160 million
2277.12 m

Total Floor Space
Structure/Floors
Completed

8,449.56 m2

Completed

SRC/S B3/8F

February 1992A

JPR Jingumae 432 (Retail)Shibuya Ward, Tokyo

668.09 m2
RC B2/2F
July 2002

1

3

Shibuya Ward, Tokyo
Acquisition Price
Site Area￥4,275 million
198.10 m2

Total Floor Space

1,066.81 m2

Structure/Floors
Completed

S/SRC B1/7F

February 2006

*Does not include area transferred to Tokyo Metropolitan Government17

Yurakucho Ekimae Building

A 4

Shinjuku Sanchome East Bldg. (Retail)Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price￥2,740 million

Site Area￥3,400 million

Site Area

2

Total Floor Space

2,578.69 m

Total Floor Space

24,617.65 m2

Structure/Floors

Completed

Completed

January 2007

B

Arca East

1

S/SRS B4/20F
October 2007

B

JPR Chiba Bldg.

Acquisition Price

Acquisition Price￥5,880 million

Site Area

23,755.01 m￥2,350 million
1,382.35 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

9,072.57 m2

34,281.86 m2

S/SRC B3/19F
March 1997

JPR Yokohama Nihon Odori Bldg.

B

3

B

5

Acquisition Price￥2,927 million￥920 million

Site Area

1,100.59 m2

841.71 m2

Total Floor Space

Total Floor Space

7,781.93 m2

9,146.52 m2

Structure/Floors

Structure/Floors

SRC B1/11F

Completed

October 1989

B 6

Kawaguchi Center Bldg.

January 1991

Yokohama City, Kanagawa

Acquisition Price

Completed

S/SRC B1/13F

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

Site Area

2

Chiba City, Chiba

Sumida Ward, Tokyo

Site Area

6,808.12 m2

71,957.65 m2

Structure/Floors

S/SRC/RC B3/14F

Kawaguchi City, Saitama

S/SRC B2/12F
August 1991

B

JPR Ueno East Bldg.

Acquisition Price

Site Area

Site Area￥8,100 million
4,524.61 m2￥3,250 million
1,242.97 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/15F

February 1994

7

Taito Ward, Tokyo

Acquisition Price

28,420.85 m2

18

A 5

(Yurakucho Itocia)(Retail)8,490.44 m2

S/SRC B1/8F

October 1992

B

Tachikawa Business Center Bldg.

8

B 9

Rise Arena Bldg.

Toshima Ward, Tokyo

Tachikawa City, Tokyo
Acquisition Price
Site Area￥3,188 million

Acquisition Price￥5,831 million

22,047.22 m

Site Area

14,706.36 m2

Total Floor Space

S/SRC B1/12F

Structure/Floors

91,280.94 m2（including residential tower)

Structure/Floors
Completed

9,377.28 m2（entire redevelopment project)

Total Floor Space

RC/SRC/S B3/42F*

December 1994

Completed

January 2007

*The commercial tower portion has 2 basement floors and 15 floors
above ground.

Yume-ooka Office Tower

Sumida Ward, Tokyo

Yokohama City, Kanagawa
Acquisition Price
Site Area

B 11

Olinas Tower

B 10

Acquisition Price￥6,510 million￥31,300 million

Site Area2

12,011.00 m

27,335.29 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

185,974.87 m2

257,842.41 m2

S/SRC/RC B3/27F

SRC/RC/S B2/45F*

March 1997

February 2006

*The office building has 31 floors above ground and 2 floors underground.

B 12

Tokyo Tatemono Yokohama Bldg.

Yokohama City, Kanagawa

B

Tanashi ASTA (Retail)Nishitokyo City, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥7,000 million
1,110.28 m2￥10,200 million
12,326.30 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

8,772.51 m2
SRC B1/9F

Completed

B 3

Kawaguchi City, Saitama
Acquisition Price
Site Area

80,675.27 m2

CompletedMay 1981

Cupo-la Main Bldg. (Retail)￥2,100 million
15,008.28 m2（entire redevelopment project)

SRC B2/17F

February 1995

B

JPR Musashikosugi Bldg. (Retail)Acquisition Price
Site Area￥7,260 million
4,761.62 m2

Total Floor Space
Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/10F
January 2006

4

Kawasaki City, Kanagawa

Total Floor Space

48,321.96 m2

1

18,394.32 m2

SRC/RC/S B1/6F
March 1983

19

Musashiurawa Shopping Square

B(Retail)

Kawasaki Dice Bldg. (Retail)5

Saitama City, Saitama

Acquisition Price￥4,335 million
8,317.99 m

Total Floor Space

Completed

S

Structure/Floors

S/SRC/RC B2/11F

B1/4F

Completed

October 2005

C

Niigata Ekinan Center Bldg.

Acquisition Price￥2,140 million

Site Area

2

Total Floor Space

19,950.42 m

Completed

March 1996

7

Fukuoka City, Fukuoka

C

JPR Naha Bldg.

Site Area

Site Area

1,214.63 m2￥1,560 million
959.87 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

S/RC B1/12F

5,780.71 m2

June 1985

C 12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

SRC/S 12F

October 1991

C 13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

Acquisition Price

Acquisition Price

Site Area

Site Area￥3,150 million
1,895.67 m2￥1,670 million
1,128.45 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

10,783.52 m2
SRC B1/12F

December 1997

9

Naha City, Okinawa
Acquisition Price￥2,900 million

SRC B3/9F

February 1970

Acquisition Price

9,828.73 m2

20Structure/Floors

S/SRC B1/10FC

1,432.64 m2

14,619.52 m2

Structure/Floors

JPR Hakata Bldg.

￥4,150 million

22,706.99 m

Completed4

Osaka City, Osaka

Acquisition Price

Total Floor Space

August 2003

Tokyo Tatemono Honmachi Bldg. C

1

Niigata City, Niigata

Site Area

4,475.45 m2

36,902.01 m2

28,930.36 m2

Structure/Floors￥15,080 million

Site Area

2

Total Floor Space

6

Kawasaki City, Kanagawa

Acquisition Price
Site Area

B

6,715.07 m2
S

9F

July 1996

C 14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka
Acquisition Price￥2,810 million

Site Area

C 17

JPR Dojima Bldg.

2

1,164.39 m

Osaka City, Osaka

Acquisition Price
Site Area￥2,140 million
668.11 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

8,690.95 m2
S/SRC 13F

Completed

July 2000

C 18

JPR Hakata-Chuo Bldg.

Completed

SRC B2/9F

October 1993

C 19

JPR Nagoya Fushimi Building

Fukuoka City, Fukuoka

Acquisition Price
Site Area

5,696.01 m2￥1,920 million
2680.63 m

Nagoya City, Aichi
Acquisition Price
Site Area￥4,137 million
1,610.38 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

3,874.81 m2

Completed

SRC 8F

February 1993C

JPR Umeda Loft Bldg. (Retail)1

Completed

SRC B1/9F

March 1991

Benetton Shinsaibashi Bldg. (Retail) C

Osaka City, Osaka
Acquisition Price￥13,000 million

Site Area

10,201.44 m2

2

3,518.68 m

Osaka City, Osaka

Acquisition Price
Site Area￥5,430 million
609.31 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

17,897.56 m2

Completed

SRC B1/8F

April 1990

C

Housing Design Center Kobe (Retail)4

Kobe City, Hyogo

5,303.98 m2

CompletedSC

JPR Chayamachi Bldg. (Retail)

Site Area

Site Area￥6,000 million
592.45 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

33,877.71 m2

SRC/S B2/11F
June 1994

5

Osaka City, Osaka
Acquisition Price

3,994.47 m2

B2/10F

February 2003

Acquisition Price￥7,220 million

33,219.36 m2
S/SRC 9F
June 1994

21

Characteristics and Corporate History
The Objective and Basic Characteristics of JPR
The fundamental investment policy of JPR consists of our investment strategy based on the basic concept of"investing in urban commercial real estate." JPR's investment targets are primarily comprised of superior
office buildings (urban work facilities), retail properties located in thriving commercial areas, the land on
which they are located and asset-backed securities that have such real estate as their primary investment.
JPR makes investments in properties in which we are convinced that the benefits of portfolio management
can be demonstrated after carefully considering the risks and returns of the investment. JPR also diversifies
its investment geographically by not limiting itself to Tokyo but by also considering assets in other major
cities.

Corporate History

22

Date

Description

September 6, 2001

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the Investment
Corporation under the Investment Trust Law

September 14, 2001

Japan Prime Realty Investment Corporation was established

November 16, 2001

Started asset management (acquisition of 13 real estate in trust with underlying trust assets of 11
office buildings and 2 commercial properties; ￥40,730 million in total value)

January 22, 2002

Investment unit split (2.5 units for 1 existing unit)

June 14, 2002

Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange

Members of the Board (As of June 30, 2011)

Executive Officer

Hirohito Kaneko
Dec. 2001
Apr. 1979
Apr. 1977

Executive Officer, Japan Prime Realty Investment Corporation (currently held position)
Representative Counsel, Hirohito Kaneko Law Office (currently held position)
Bar admission (Tokyo Bar Association), Shigeru Yamada Law Office

Supervising Officer

Sosuke Yasuda
Jan. 2009
Apr. 2008
Jan. 2008
Oct. 2006
Jun. 2006
Jun. 2005
Sep. 2001
Oct. 1999
Jul. 1993
Feb. 1983
Jun. 1980
Dec. 1975
Apr. 1968

Adviser, Gyosei Audit Corporation (currently held position)
Group Representative Partner, GYOSEI Certified Public Tax & Accountants’ Co. (currently held position)
Outside Auditor, Mitsui Sumitomo Insurance Group Holdings, Inc. currently MS&AD Insurance Group
Holdings, Inc. (part-time, currently held position)
Group Representative Partner, Gyosei Audit Corporation (Tokyo Hokuto & Co. merged with Serizawa
Accounting Firm)
CPA and Director, Gyosei Audit Corporation
Outside Auditor, Nomura Research Institute, Ltd. (currently held position)
Outside Auditor, Mitsui Sumitomo Insurance Company, Ltd.
Supervising Officer, Japan Prime Realty Investment Corporation (currently held position)
Director and Senior Partner, Tokyo Hokuto & Co. (Tokyo Akasaka Audit Co. merged with Hokuto
Audit Co. )Senior Partner, Tokyo Akasaka Audit Co.
Representative, Tokyo Akasaka CPA Joint Office
Sosuke Yasuda Tax Accountant Office
Masamitsu Serizawa Accounting Firm
Main Store, KK Ohgiya

Supervising Officer

Masato Denawa
Apr. 2011
Apr. 2009
Sep. 2007
Jul. 2007
Feb. 2005
Jul. 2003
Apr. 2002
Jun. 2000
Jan. 1999
Apr. 1991
Apr. 1990

Practicing-attorney-professor for civil advocacy, The Legal Training and Research Institute of Japan,
Supreme Court of Japan (currently held position)
Adjunct proffessor (part-time) at Keio Law School (currently held position)
Supervising Officer of Japan Prime Realty Investment Corporation (currently held position)
Director of Advicelink Co., Ltd. (currently held position)
Part-time auditor of Ulvex Inc. (currently held position)
Partner attorney at Spring Partners (former Okinobu, Ishihara & Sei Law Office)Adjunct professor (part-time) at Keio University Faculty of Law (Civil law practice)Part-time auditor of Kinkan Co., Ltd. (currently held position)
Partner of Okinobu, Ishihara & Sei Law Office (currently held position)
Okinobu, Ishihara & Sei Law Office (former Okinobu & Ishihara Law Office)Registered with Daiichi Tokyo Bar Association at Okinobu & Ishihara Law Office currently MS&AD
Insurance Group Holdings, Inc. (part-time, currently held position)

23

Overview of the Asset Manager
Corporate Profile
Name

Tokyo Realty Investment Management, Inc. (TRIM)

Core Business

Asset management for investment corporation

Capitalization

350 million yen

Shareholders

Tokyo Tatemono Co., Ltd. (40%)
Taisei Corporation (20%)
Yasuda Real Estate Co., Ltd. (20%)
Meiji Yasuda Life Insurance Company (10%)
Sompo Japan Insurance Inc. (10%)

History

April 28, 2000:

Founded

October 13, 2000:

Approved for real estate transaction service

March 16, 2001:

Approved as discretionary transaction agent

June 20, 2001:

Approved for asset management of investment corporation

September 30, 2007:

Registered as investment management business

November 28, 2007:

Applying for and submitting application form regarding Financial
Instruments and Exchange Law (investment management business)(1) Asset management for JPR (including all decision-making in connection with the acquisition/dispositionor leasing of properties and acting as an agent or broker of such transactions based on relevant
evaluation and judgement)(2) Funding by JPR(3) Reporting to JPR(4) Any other services related to or affiliated with the above

Services

Organization

Shareholders Meeting

Auditors

Board of Directors
President and CEO

Investment Committee

Compliance Committee(Invest Subcommittee/ Fund Management Subcommittee )(Compliance Subcommittee )Compliance Office
Investment Management

ResearchGroup

Investment
Group

Asset
Management
Group

Corporate Plannig /Financial Division

Division

FinancialGroup

Investor
RelationsGroup

Administration Division

FundManagement
Group

Corporate
Planning
Group

Accounting /HumanResourcesGroup

TRIM's Decision-Making Process of Investment Management

TRIM established the Investment Committee to make investment management decisions with Investment Subcommittee(including the Due Diligence Subcommittee) and Fund Management Subcommittee below it. Members of these Committees
and Subcommittees include the CEO, CIO, CFO and CAO. However, regarding the Due Diligence Subcommittee, aCompliance Office General Manager is also included to enhance compliance when conducting due diligence for the targeted
investment asset.
The Board of Directors is responsible for the targeted investment assets and policies. The Investment Committee formulates
management plans, while the Investment Subcommittee is in charge of decisions on issues regarding the acquisition anddisposition of individual assets. The Fund Management Subcommittee is responsible for issues regarding the managementof individual assets.
Procedures for decision-making by the Investment Subcommittee entails following secure procedures that require two
steps: a policy decision concerning acquisition or disposition and a final decision on acquisition or disposition. In addition,
in regard to the acquisition of an individual asset, a Due Diligence Subcommittee meeting will be held after the acquisition
policy is decided to enhance the screening of the details of due diligence. Furthermore, the Board of Directors is given
final decision-making power on the acquisition and disposition of individual assets greater than a certain value.
Meanwhile, decisions and legal procedures by each committee are screened to confirm that they do not violate laws,
regulations, JPR’s Articles of Incorporation, internal rules, etc. at the Compliance Subcommittee just before Committee
meetings are held. The Compliance Office General Manager reports on the presence or absence of violations of laws orrules before the screening at each Committee and, in addition, instructs each manager to decide at or report to TRIM’s
Board of Directors or JPR’s Board of Directors in compliance with the rules, etc.

24

Directors of Tokyo Realty Investment Management, Inc.
President and Chief Executive Office (CEO)Satoshi Okubo

Jun. 2010 Appointed as President and CEO, Tokyo Realty Investment Management, Inc. (currently held position)
Mar. 2010 Appointed as Advisor, Tokyo Tatemono Co., Ltd.
Mar. 2010 Appointed as Auditor (part time), Tokyo Tatemono Real Estate Sales Co., Ltd. (currently held position)
Oct. 2005 Appointed as Director and Head of Kansai Branch Office
Mar. 2005 Appointed as Director and Head of Osaka Branch Office
Oct. 1998 Appointed as General Manager, Residential Management Dept.
Jan. 1996 Appointed as Group Leader, Second Leasing Group, Second Building Leasing Dept.
Apr. 1995 Appointed as Manager, Management Planning Office, Corporate Planning Division
Apr. 1994 Appointed as Manager, Corporate Planning Division and Manager, International Planning Office, Corporate Planning Division
Apr. 1992 Appointed as Manager, Corporate Communications Office and Manager, Corporate Planning Division
Apr. 1977 Joined Tokyo Tatemono Co., Ltd.
Director and Chief Administrative Officer (CAO)

Kazuo Kitami

Oct. 2004 Appointed as Director and Chief Administrative Officer, Tokyo Realty Investment Management, Inc. (currently held position)
Oct. 2004 Dispatched to Tokyo Realty Investment Management, Inc.
Jan. 2004 Appointed as member of the council in charge of Affiliated Companies Dept. Meiji Yasuda Life Insurance Company
Apr. 2003 Appointed as Manager, Loan Management of the Management and Administration Division
Aug. 2000 Appointed as Manager, Loan General Affairs of the Management and Administration Division
Apr. 1997 Appointed as Manager, Credit Assessment Dept. 2 of the Management and Administration Division
Apr. 1995 Appointed as Manager of Real Estate Development Dept. of the Real Estate DivisionSep. 1989 Appointed as Manager of Real Estate Development Dept. of the Real Estate Division
Apr. 1975 Joined Yasuda Mutual Life Insurance Company (currently Meiji Yasuda Life Insurance Company) and assigned to Training
Institute of the Education Division

Director and Chief Investment Officer

Kazuki Sugise

Mar. 2011 Appointed as Director and Chief Investment Officer (currently held position)
Jul. 2007 Appointed as General Manager, Investment Management Division(responsible for the Investment Group and
Jul.
Apr.
Jun.
Apr.
Apr.

Research Group), Tokyo Realty Investment Management, Inc.

2007 Dispatched to Tokyo Realty Investment Management, Inc.
2005 Appointed as Group Leader, Urban Development Department
2004 Appointed as Team Leader, Urban Development Department
2002 Appointed as Manager, Urban Development Department and Manager, Retail Project Development Office
1988 Joined Tokyo Tatemono Co., Ltd.

Director and Chief Financial Officer (CFO)

Katsuhito Ozawa

Jul. 2009 Appointed as Director and Chief Financial Officer, Tokyo Realty Investment Management, Inc. (currently held position)
Jul. 2009 Dispatched to Tokyo Realty Investment Management, Inc.
Nov. 2007 Appointed as Representative Director of Kachidoki GROWTH TOWN Co., Ltd.
Mar. 2007 Appointed as General Manager of Residential Management Division, Tokyo Tatemono Co., Ltd.
Oct. 2004 Appointed as General Manager of Financial Division (responsible for Financial Group and Investor Relations Group)
Apr. 2002 Dispatched to Tokyo Realty Investment Management, Inc.
Apr. 2001 Appointed as Manager of Investment Services Department
Apr. 1987 Joined Tokyo Tatemono Co., Ltd., Yokohama Branch
Director and Compliance Officer

Shigeyuki Sugawara

Jun. 2010 Appointed as Director and Compliance Officer, Tokyo Realty Investment Management, Inc.
Apr. 2008 Appointed as Compliance Officer, Tokyo Realty Investment Management, Inc.
Jul. 2005 Appointed as Corporate Planning/Administration Division Manager (responsible for Planning Group/Compliance Group)
Oct. 2004 Appointed as Corporate Planning/Administration Division Manager (responsible for Compliance Group)
Oct. 2002 Joined Tokyo Realty Investment Management, Inc.
Jan. 2001 Dispatched to Tokyo Realty Investment Management, Inc.
Apr. 1999 Appointed as Manager, Real Estate Section, Real Estate Division, Asahi Jitsugyo Co., Ltd. (seconded from Asahi MutualLife Insurance Company)

Apr. 1998 Appointed as Deputy Manager, Real Estate Business Office, Real Estate Division
Apr. 1985 Joined Asahi Mutual Life Insurance Company

25

Overview of Asset Management(1) Operational Performance of JPR

15th
Fiscal Period(Jan. 1, 2009 June 30, 2009)

16th
Fiscal Period(July 1, 2009 Dec. 31, 2009)

17th
Fiscal Period(Jan. 1, 2010 June 30, 2010)

18th
Fiscal Period(July. 1, 2010 Dec 31, 2010)

19th
Fiscal Period(Jan. 1, 2011 June 30, 2011)

14,33011,493

12,314

11,87011,52911,03011,493

11,855

11,87011,529Gain on sale of real estate

3,300

―

459

―

－

Operating Expenses
Expenses related to rent
Operatingbusiness
Performance
Loss on sale of real estate

7,762

5,665

5,830

5,983

5,926

Unit

Operating Revenue
Rent revenue - real estate

Million yen

Million yen

Loss on sale of investment
securities

5,010

5,144

5,361

5,296

―

―

―

－

38

―

―

―

－

Operating Income

Million yen

6,568

5,827

6,484

5,886

5,603

Ordinary Income

Million yen

5,572

4,333

4,964

4,039

4,075

Net Income

Million yen

2,331

4,332

4,963

4,039

4,010

Total Assets

Million yen

329,163

332,380

358,339

360,904

360,004(% Change)%(+6.4)(+1.0)(+7.8)(+0.7)(-0.2)

Assets, etc. Interest-bearing Debt
Total Unitholders' Equity

Million yen

150,230

150,872

161,262

163,904

162,763

Million yen

159,057

161,058

176,303

175,502

175,452(% Change)%(-1.3)(+1.3)(+9.5)(-0.5)(-0.0)

Unitholders' CapitalMillion yen

156,725

156,725

171,339

171,339

171,339

Total Cash Distributions

Million yen

2,331

4,333

4,840

4,061

4,011

%

99.9

100.0

97.5

100.5

100.0

Units

625,000

625,000

715,000

715,000

715,000

Yen

254,492

257,693

246,578

245,458

245,387

Dividend payment ratio
Number of Units Outstanding
Total Unitholders' Equity per
CashDistribution Unit
per Unit, etc. Cash Distribution per Unit
Distribution amountExceeding profit
distribution amount
Ordinary Income (Note 1)

Yen%

Annualized (Note 10)
Net Income/NAV (Note 2-1)%

Annualized (Note 10)
Total unitholders' equity at
beginning of period (Note Million yen
2-2)

Financial
Indices

Unitholders' Equity Ratio at End of
Period (Note 3)(Year-on-year increase/decrease)
Interest-Bearing Debt to Total
Assets at End of Period (Note 4)
DSCR (Note 5)
Net income before interest
and amortization
Interest paid (Note 6)
NOI from Leasing (Note 7)
Annualized NOI yield(Notes 9 and 10)
NCF from Leasing (Note 8)
Annualized NCF yield(Notes 9 and 10)%%―
Million yen
Million yen

Reference Total Leasable Floor Space (NoteInformation
12)
Occupancy Rate

3,731

6,933

6,770

5,680

5,611

3,731

6,933

6,770

5,680

5,611

―

―

―

―

－

1.7

1.3

1.4

1.1

1.1

3.5

2.6

2.9

2.2

2.3

1.5

2.7

2.9

2.3

2.3

2.9

5.4

5.9

4.6

4.6

161,158

159,057

161,058

176,303

175,502

48.3

48.5

49.2

48.6

48.7

(-3.8)(+0.1)(+0.7)(-0.6)(+0.1)

45.6

45.4

45.0

45.4

45.2

7.1

5.4

5.4

4.9

5.1

7,284

7,604

7,841

7,511

7,438

1,024

1,420

1,439

1,542

1,451

7,864

8,332

8,607

8,438

8,144

%

5.1

5.3

5.2

4.9

4.8

Million yen

7,109

7,657

8,383

7,980

7,597

%

4.6

4.9

5.0

4.6

4.5

51

53

55

56

56

476

476

460

479

493

m

393,532.31

400,751.87

410,326.04

420,544.51

421,371.51

%

96.8

96.4

95.5

93.5

94.7

Properties Owned (Note 11)
Number of tenants

26

4,961
2,154

(Note 1) Recurring profit / (total assets at beginning of period + total assets at end of period) / 2(Notes 2-1 and 2-2) 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 debt / total assets at end of period x 100(Note 5) Net income before interest and amortization (excluding gain or loss on sale of real estate, loss on sales of investment securities and extraordinary loss) / interest paid
(Note 6) Interest paid in this table includes interest on corporate bonds(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing /purchase price of property (15th fiscal period: ￥311.91 billion, 16th fiscal period: ￥310.61 billion, 17th fiscal period: ￥335.98
billion, 18th fiscal period: ￥341.58 billion and 19th fiscal period: ￥341.58 billion)
Annualized NCF from leasing /purchase price of property(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 15th fiscal period: 181 days, 16th fiscal period: 184 days,
17th fiscal period:181 days, 18th fiscal period: 184days and 19th fiscal period: 181days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East Bldg., Tachikawa Business Center Bldg. and JPR
Umeda Loft Bldg. were acquired at multiple times but 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 are rounded to the first decimal point (except for the dividend payment ratio, which is rounded off to the first decimal point) .

(2) 19th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Investment Trusts
and Investment Corporations Law (hereafter, the Investment Trusts Law), 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. JPR made its fourth additional public offering in February 2010, bringing the number of investment units issued
and outstanding to 715,000 units. JPR has assigned the asset management of its portfolio to Tokyo Realty Investment
Management Inc., through which JPR aims to maximize unitholder value by efficiently managing the portfolio of officebuildings and retail properties.

2) Management Environment
Early in the 19th fiscal period, the Japanese economy appeared ready to come out of the leveling-off situation thanks
to the demand from abroad against the backdrop of the strong world economy. However, the impact of the Great East
Japan Earthquake that broke out in March 2011 destroyed supply chains, caused power shortage and ruined consumer
confidence, among other impacts, bringing the economy back to a downturn.
For the moment, we see possible promising aspects for the future, such as the already recovering supply chains and postquake reconstruction demand arising in the latter half of the year. On the other hand, however, there are large areas of
opacity, including the impact of the nuclear power plant incident and the prolonged and extended power shortages. Thishas made it difficult to have a clear perspective of the economy down the road.
As for the circumstances surrounding J-REITs, the investment unit prices remained relatively stable, successfully bolsteredby the decision the Bank of Japan made immediately after the earthquake to expand its purchase volume of REIT units.
Given the uncertain outlook of the Japanese economy and the real estate market, however, the investment unit prices are
currently struggling to rise.

The Office Building Leasing Market
In the first three months (January – March) of 2011, the office market allowed anticipation for the bottoming out andreversal of leasing market conditions, as exemplified by new demand in the 23 wards of Tokyo recovering to surpassthe new supply. However, the impact of the earthquake brought about a sense of sluggishness in market improvement.
According to a survey by CB Richard Ellis Japan, the vacancy rate in the 23 wards of Tokyo at the end of June 2011 was
7.6%, remaining almost flat from 7.7% as of the end of March 2011. Given the sense of uncertainty for the outlook of theeconomy and other factors, no expectation is possible for an abrupt upturn of the supply and demand situation of officespaces in the short term. Accordingly, the recovery in the office building leasing market will probably be somewhat delayedwith respect to the forecasts made before the earthquake.
Furthermore, after the earthquake, tenants are placing more importance on the seismic resistant performance and energysaving performance in selecting office buildings. Going forward, tenant’s preference will become increasingly polarized in a
weak market condition, with considerations given to such evaluation basis.

The Retail Property Leasing Market
Initially, consumption was expected to be undergoing a recovery process, as retail sales in 2010 regained the level before
the financial crisis. However, the severity came back as consumer confidence was damaged by the impact of the earthquake.
While consumption is returning to normal at the moment, it is likely to take time before achieving recovery. The retailproperty leasing market is generally in a difficult situation. Nevertheless, some urban retail properties in good locations,such as Ginza and Shinjuku, are presumably almost bottoming out as a result of significant rent adjustments already taken
following the financial crisis.

The For-Sale Real Estate Market
In the 19th fiscal period, recovery in the for-sale market had become conspicuous since the beginning of the year, as REITs
conducted property acquisitions associated with capital increases and traded class A office buildings. After the earthquake,
however, the “wait-and-see” attitude temporarily prevailed with regard to new acquisitions.
As fund procurement conditions remain relatively stable despite the impact of the earthquake, sellers have not lowered
their price targets. On the other hand, buyers have difficulty in raising the price levels they can afford since the impact of
the earthquake obscured the outlook of the domestic economy and the real estate market. This is how the current market
situation looks.
Still, buyers’ willingness to invest has not deteriorated, even since the earthquake, and transactions of some large-scaleretail properties have been conducted recently As such, transactions will likely be successfully closed in the future, startingwith blue-chip properties that allow expectations for improved earnings, accompanied by a recovery in pricing.

3) Portfolio Management Status
New Property Acquisitions

JPR investigated possible investments mainly in office buildings in Tokyo CBDs and retail properties during the 19th fiscal
period with the primary aim of stabilizing portfolio earnings while paying attention to balancing diversification of theportfolio, both in terms of location and asset class. However, no acquisitions were made during the 19th fiscal period. As aresult, the balance of assets under management now totals 56 properties, or 341.5 billion yen on an acquisition price basis,
as of the end of June 2011. The total leasable floor space is now 421,371m2 and the number of tenants is 493.

27

Operational Management of Portfolio
Although some class S office buildings in Tokyo CBDs started to show symptoms of bottoming out both in vacancy rates
and rent levels, the leasing market as a whole remains tough. In such a situation, JPR has conducted management under apolicy that places the highest priority on maintaining and improving occupancy rates.
With regard to Tokyo Tatemono Honmachi Building and JPR Nagoya Fushimi Building, which had seen declines in
occupancy rates due to contract cancellations by major tenants, JPR continued to focus on winning new leases for theseproperties, primarily through the efforts of the leasing project team. A variety of measures to reinforce leases were
implemented, including upgrading construction and private views; the occupancy rates were successfully improved
promptly and significantly, to about 80% for the former and about 70% for the latter, as of the end of the 19th fiscal
period.
Furthermore, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continuously implements
renovations in an aim to create spaces where the workers feel satisfaction. During the 19th fiscal period, JPR implemented
renovations in the common areas of Tokyo Tatemono Honmachi Building and upgrading construction of leasable areas at
JPR Nagoya Fushimi Building, among others, as a measure for new leases.
As an endeavor to implement energy-saving measures, JPR conducted such construction as replacement of lighting
equipment at JPR Ueno East Building and attachment of glass film at JPR Nihonbashi-horidome Building, which are expected
to be effective in saving energy.
Meanwhile, there was no major damage to JPR’s properties from the Great East Japan Earthquake. JPR immediately
conducted on-site confirmation of the status of buildings, and repaired cracks on the walls and other minor damage.

Fund Procurement
During the 19th fiscal period, JPR continued to maintain its stable financial base through such measures as conducting
refinances to long-term fixed interest funds, with an eye on avoiding future interest rate fluctuation risks and remaining
attentive to the diversification of repayment and redemption maturity dates.
As a result, the balance of total outstanding borrowings as of the end of the fiscal period was 115.26 billion yen, with
unsecured corporate bonds of 47.5 billion yen. With regards to JPR’s overall interest-bearing debt, the average interest rate
as of the end of the fiscal period (Note 1) was 1.8%, the interest-bearing debt ratio (Note 2) was 48.7% and the LTV (ratio ofinterest-bearing debt to total assets) at the end of the period (Note 3) was 45.2%.
Of these, the non-current portion of long-term interest-bearing debt that is hedged against risk of interest rate fluctuations
now comprises 77.8% of all interest-bearing debt, and the average maturity (Note 4) is 3.7 years. The current portion of
long-term interest-bearing debt is 26.11 billion yen.
The following represents the issuer ratings for JPR as of the end of this fiscal period.

Details of Corporate Credit Ratings as of June 30, 2011
Credit Rating Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

AA- (Stable)

Moody's Japan K.K.

A2 (Negative)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) Average interest is arrived at by calculating a weighted average of interest rates as of the end of the 19th fiscal period based on thebalance of each debt.
(Note 2) Interest-bearing debt ratio (%): interest-bearing debt/(interest-bearing debt + unitholders' capital) x 100 (unitholders' capital:
171.33 billion yen)
(Note 3) LTV at end of period (%): interest-bearing debt/total assets at end of period x 100 (total assets at the end of the 19th fiscal period:
360.00 billion yen)
(Note 4) Average maturity of long-term interest-bearing debt is arrived at by calculating a weighted average of maturities from the end of
the 19th fiscal period to the repayment deadlines for long-term interest-bearing debt with repayment periods of more than one
year, based on the balance of each debt.

28

(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. in and prior to the 18th fiscal period.
Date

Number of Units
Outstanding

Event

Variation
September 14, 2001 Established by private placement

Unitholders' Capital (million
yen)

Balance

Variation

Remarks
Balance

240

240

120

120

(Note 1)

November 16, 2001 Additional private placement

62,00062,24031,00031,120(Note 2)January 22, 2002

93,360155,600-

31,120(Note 3)

Split of investment units

June 14, 2002

Initial public offering

134,000

289,600

25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

39,120154,552(Note 9)March 7, 2007

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), andTokyo Realty Investment Management, Inc. (40 units) at 500,000 yen per unit.
An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in realestate trust and started management.
(Note 3) A single investment unit was split into 2.5 units.
(Note 4) New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to
repay short-term debt, finance the acquisition of new specific assets, etc.
(Note 5) New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 6) New investment units were issued through a third-party allotment at 228,859 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 7) New investment units were issued through a public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 8) New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 9) New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to
repay debt, acquire new specific assets, etc.
(Note 10) New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debt, acquire new specific assets, etc.
(Note 11) New investment units were issued through a public offering at 168,101 yen per unit (underwriting price of 162,382 yen per unit) to
repay short-term debt, redeem investment corporation bonds, acquire new specific assets, etc.
(Note 12) New investment units were issued through a third-party allotment at 162,382 yen per unit to repay short-term debt, redeem
investment corporation bonds, acquire specific assets, etc.
(Note 1)
(Note 2)(4) Cash Distributions
With regard to the cash distributions for the 19th fiscal period, JPR decided to distribute part of the retained earnings
brought forward that had been internally reserved through the 18th fiscal period. This was conducted with the aim ofhaving 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 on
unitholders incurred by accrual of income taxes, etc. As a result, the cash distribution per unit came to 5,611 yen.

(Thousands of yen unless otherwise indicated)

Date

Unappropriated Retained
Earnings at End of Period
Internal Reserves

19th
Fiscal Period(Jan. 1, 2011 June 30, 2011)

18th
Fiscal Period(July. 1, 2010 Dec 31, 2010)

17th
Fiscal Period(Jan. 1, 2010 June 30, 2010)

16th
Fiscal Period(July 1, 2009 Dec. 31, 2009)

15th
Fiscal Period(Jan. 1, 2009 June 30, 2009)

2,332,243

4,333,229

4,963,970

4,088,758

4,038,287

368

104

123,420

27,55826,422

Total Cash Distributions(cash distribution per unit)

2,331,875

4,333,125

4,840,550

4,061,200

4,011,865(3,731 yen)

(6,933 yen)

(6,770 yen)

(5,680 yen)

(5,611 yen)

Total Cash Distributions from Net Income(cash distribution from net income per unit)

2,331,875

4,333,125

4,840,550

4,061,200

4,011,865(3,731 yen)

(6,933 yen)

(6,770 yen)

(5,680 yen)

(5,611 yen)

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

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)29

(5) Future Management Policy and Vital Issues
A major characteristic of the Great East Japan Earthquake is the large extent of such indirect impacts as
the nuclear power plant incident and power shortages associated with the earthquake, aside from themagnitude of direct damage including those from the tsunami.
There is a concern for these indirect impacts to be prolonged, and they pose a heavy burden on theeconomic recovery.
In the case of the Great Hanshin-Awaji Earthquake in 1995, demand from post-earthquake reconstructions
put the economy on track to recovery in a short time. It is yet uncertain, however, whether the same process
will be followed this time.
However, restricted supply of goods, which has been the largest issue of concern at the moment, isheading towards a solution; the great damage on the supply chains caused by the earthquake are being
repaired at a pace quicker than initially forecasted, and companies have made upward revisions to theircapital investment plans. As for the demand trend, it is anticipated that demand from post-earthquake
constructions, such as restoration of production facilities that were damaged or destroyed by theearthquake, will gradually materialize. As such, expectations are for the economy to undertake a recovery
process, though slowly, starting in the latter half of 2011.
On the other hand, the real estate market will continue to “ remain at the bottom” for some time becauseof the impact of the earthquake and the reversal of the market condition will probably be postponed. Yetin the for-sale market, buyers’ willingness to invest has not deteriorated, even since the earthquake. In theleasing market, tenants are increasingly interested in the seismic resistance performance and energy-saving
performance of buildings, and their preference is becoming more polarized on such an evaluation basis. Inline with this trend, we anticipate that demand in the leasing market will gradually turn to a recovery in2012 and after.
Based on these conditions, JPR will proceed with management that exercises caution regarding the following
matters as we strive to maximize unitholder value.

1) Acquisition of New Properties
JPR will investigate investment targets from a wide selection of available properties, centering on Tokyoand office buildings. JPR believes that the for-sale market will remain mainly at the bottom, presenting agood opportunity for property acquisitions. JPR will work to invest in strictly selected properties, making
stringent evaluations of their location, size and specifications (including the seismic resistant performanceand energy-saving performance) and taking into account how tolerant they are against market downtowns
and how much potential they have for revenue growth upon market recovery. JPR will strive to acquire
properties under reasonable terms by negotiating prices based on detailed market studies and property
investigations in considering properties.
JPR will continue to make investment decisions after a proactive collection of information through such
sources as sponsors of the asset management company, accurately grasping market trends and carefully
researching investment value, including the future potential of candidate properties.

302) Management of Portfolio
Given the continuation of the severe leasing environment, JPR will work to raise the occupancy rate of its
portfolio by conducting measures to reinforce leases, centering on strategic upgrading constructions withan aim to invite new tenants and enhance satisfaction of existing tenants and on further strengthening
coordination with tenant brokers. For properties that have particularly stagnant occupancy rates, JPR
will focus on reinforcement of leasing activities by more closely cooperating with property managementcompanies, centering on Tokyo Tatemono.
Moreover, under the concept of “ Save energy,” which is part of JPR’s brand strategy, JPR will systematically
implement“ renovations of air conditioning systems aiming to create buildings with high environmental
performance” and other measures, in promoting endeavors to meet the energy-saving obligations (efforts tosave energy by at least 1% on average per year) based on the revised Act on the Rational Use of Energy (ActNo. 49 of 1979, as amended thereafter) (hereinafter, the“ Revised Energy Conservation Act”), the Ordinanceon Environmental Preservation to Secure the Health and Safety of Citizens of the Tokyo Metropolitan Area
(Ordinance No. 215 of 2000, as amended thereafter) of the Tokyo Metropolitan Government and other laws
and regulations. JPR has been investigating measures that should help reduce energy consumption, such as
replacing lighting equipment with LED lamps, for buildings subject to the Revised Energy Conservation Act.
JPR estimates that the measures will make it possible to fulfill the energy savings obligations for the coming
five years without having to make significant changes to the existing medium- to long-term repair andmaintenance plans.
Furthermore, with regard to the Japanese government’s request for power saving due to the impactof the Great East Japan Earthquake, JPR will make arrangements necessary for reducing the maximum
power consumption by 15% not only at its large-scale buildings, which are subject to power consumption
restrictions pursuant to the Electricity Business Act, but also at other buildings in its portfolio. JPR will do soin consideration of the social importance of the measures, while paying attention to tenant satisfaction.

(6) Fund Procurement
JPR's fundamental policy for fund procurement calls for an efficient combination of long-term steadyfund procurement and short-term fund procurement that emphasizes dynamism. In line with this policy,
JPR will procure funds through unsecured and unguaranteed bank borrowings as well as the issuanceof corporate bonds. JPR will continue to focus on the diversification of fund procurement means andconsistently strive to diversify maturities.

(7) Information Disclosure
JPR has positioned the proactive voluntary disclosure of information as one of its key management policies
and will voluntarily disclose information believed to be essential to investment decisions concerning JPR,
along with the timely disclosure of items to the Tokyo Stock Exchange. JPR is proactively employing its
website (http://www.jpr-reit.co.jp/jpr_e) as a vital means for implementing voluntary disclosure and, JPR
has promptly disclosed performance information and has run videos on its primary properties using thissite. We are committed to further enriching our information disclosure activities.

(8) Important Facts Arising after the Settlement
There are no material subsequent events for this fiscal period.

31

Overview of the Investment Corporation(1) Unitholders' Capital

15th Fiscal Period
as ofJune 30, 2009

16th Fiscal Period
as ofDecember 31, 200917th Fiscal Period
as ofJune 30, 2010

18th Fiscal Period
as ofDecember 31, 2010

19th Fiscal Period
as ofJune 30, 2011

Total number of authorized units

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total number of units issued andoutstanding

625,000

625,000

715,000

715,000

715,000

Unitholders' capital (millions of yen)

156,725

156,725

171,339

171,339

171,339

Total number of unitholders

14,57014,751

15,197

14,977

14,576(2) Primary Investors
The following table shows the 10 largest investors according to the percentage of their owned investment units to the total
number of units outstanding as of the end of the 19th fiscal period.

Name

Number of
Owned Units

Address

Japan Trustee Services Bank, Ltd.

Chuo Ward, Tokyo

110,555

15.46

The Nomura Trust and Banking Co., Ltd.

Chiyoda Ward, Tokyo

58,104

8.12

Trust & Custody Services Bank, Ltd.

Chuo Ward, Tokyo

41,587

5.81

Tokyo Tatemono Co., Ltd.

Chuo Ward, Tokyo

29,300

4.09

Northern Trust Company (AVFC) AccountShingapore Clients (Standing proxy:
Hongkong and Shanghai Banking Corporation Limited,Tokyo Branch)

London, UK(Chuo Ward, Tokyo)

27,258

3.81

Kawasaki Gakuen

Kurashiki City, Okayama

25,0003.49

Meiji Yasuda Life Insurance Company

Chiyoda Ward, Tokyo

24,0003.35

The Master Trust Bank of Japan, Ltd.

Minato Ward, Tokyo

23,341

3.26

Nomura Bank (Luxemburg) S. A. ( Standing proxy: Sumitomo
Mitsui Banking Corporation)

Luxemburg(Chiyoda Ward, Tokyo)

20,162

2.81

Deutsche Securities, Inc.

Chiyoda Ward, Tokyo

14,7532.06

374,060

52.31

Total
(Note) Percentage of total units outstanding are rounded to the second decimal point.

32

Percentage
of Total Units
Outstanding (%)

(3) Items Related to Directors

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 19th fiscal period are as follows.
Position

Executive Officer

Supervising
Officers (Note 1)

Name

Other Current Assignments

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office

Sosuke Yasuda

Numberof Owned
Units

2,400

―

Adviser, Gyosei Audit Corporation
Group representative partner, GYOSEI Certified
Public Tax & Accountants’ Co.
Outside Auditor, Nomura Research Institute, Ltd.

―

Outside Auditor, MS&AD Insurance Group Holdings(part-time)

Masato Denawa
Independent
Auditor (Note 2)

Total Directors'
Fee during
the 19th Fiscal Period(thousands of yen)

4,200
―

Partner Attomey, Spring Partners

Ernst & Young
ShinNihon LLC―

12,700―(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.

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
Trust Law. The decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following
comprehensive consideration of 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 19th fiscal period are as follows.
Outsoursing Category

Name

Asset management company

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.
Mizuho Trust & Banking Co., Ltd.

Administrative agent(administration concerning
corporate bonds)

Mizuho Securities Co., Ltd.
Merrill Lynch Japan Securities Co., Ltd.
Mizuho Corporate Bank, Ltd.
Shinkin Securities Co., Ltd.
Nomura Securities Co., Ltd.

33

Status of JPR's Assets under Management(1) JPR's Asset Structure
18th Fiscal Period(as of December 31, 2010)

Asset TypeReal estate

Real estate in trust

Area

Assets owned
by JPR(thousands of yen)

19th Fiscal Period(as of June 30, 2011)
Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Percentage of
total assets (%)

Tokyo CBDs

76,540,431

21.2

76,720,219

21.3

Greater Tokyo

65,348,124

18.1

64,924,515

18.0

Other Cities

11,126,283

3.1

11,029,829

3.1

Tokyo CBDs

88,651,587

24.6

88,354,212

24.5

Greater Tokyo

45,255,752

12.5

44,825,226

12.5

Other Cities

44,882,587

12.4

44,682,002

12.4

29,099,813(―)
360,904,581(331,804,767)

8.1
(―)
100.0
(91.9)

29,468,864(―)
360,004,870(330,536,005)

8.2
(―)
100.0
(91.8)

Deposits and other assets
Total assets―(Note 1) Total assets owned are based on the amounts appropriated on the balance sheet as of the settlement date (book values after depreciation for real estate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(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 19th fiscal period.
Property NameBook Value(thousandsof yen)Leasable Floor
Space (m2)

23,987.40

Leased Floor
Space (m2 )23,652.51

Occupancy
Rate (%)

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

Asset Class

98.6

9.4

OfficeOlinas Tower

30,561,238

Shinjuku Center Bldg.

21,536,163

8,861.34

7,977.18

90.0

4.4

OfficeBYGS Shinjuku Bldg.

15,591,875

15,202.86

12,934.27

85.1

4.2

OfficeJPR Sendagaya Bldg.

15,354,329

6,177.74

5,813.42

94.1

2.4

OfficeKanematsu Bldg.

14,980,664

7,994.02

7,190.65

90.0

3.0

OfficeKawasaki Dice Bldg.

14,736,766

13,066.69

12,825.79

98.2

3.4

RetailJPR Umeda Loft Bldg.

12,618,661

18,586.97

18,586.97

100.0

3.7

RetailJPR Shibuya Tower Records Bldg.

11,691,546

8,076.85

8,076.85

100.0

3.2

RetailMS Shibaura Bldg.

10,988,218

14,470.72

14,470.72

100.0

4.5

OfficeShinjuku Square Tower

9,218,252

11,150.78

9,330.90

83.7

1.9

Office157,277,715

127,575.37

120,859.26

94.7

40.0

Total

(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. and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a lease agreement has been executed where the rent paid by the tenant fluctuatesin accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate entered for this building are the figures concerning
the sub-lessee of the tenant.
(Note 3) Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees. The figure
includes the portion additionally acquired in 14th fiscal period.
Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted areas of offices, shops and warehouses which the company rents and can subleaseto sub-lessees by 40.31465%, the rent allocation ratio of JPR. The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent
allocation ratio. Each figure has been rounded to the second decimal point.

34

(3) Acquired Properties

The overview of the real estate and beneficiary interest in real estate in which JPR invests are as follows.

Location Asset
Category Class

Tokyo
CBDs

Property Name

Location

Asset TypeBook Value(as ofJune 30, 2011)(thousands of yen)Appraisal Value(as ofJune 30, 2011)(thousands of yen)

Kanematsu Bldg.

Chuo Ward, Tokyo

Beneficiary Interest

14,980,664

10,200,000

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Beneficiary Interest

2,497,643

2,260,000

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

Beneficiary Interest

1,958,642

2,370,000

1,631,992
564,035
201,0112,950,000

Shin-Kojimachi Bldg.
(additional acquisition in 2nd fiscal period )(additional acquisition in 6th fiscal period)

Chiyoda Ward, Tokyo

Beneficiary Interest

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

Beneficiary Interest

3,529,271

3,450,000

MS Shibaura Bldg.

Minato Ward, Tokyo

Beneficiary Interest

10,988,218

14,200,000

Gotanda First Bldg.

Shinagawa Ward, Tokyo Beneficiary Interest

2,712,911

2,780,000

Fukuoka Bldg.
(additional acquisition in 7th fiscal period )Chuo Ward, Tokyo

Beneficiary Interest
Real Estate

1,782,614
1,146,387

3,230,000

PR Ichigaya Bldg.

Chiyoda Ward, Tokyo

Beneficiary Interest

5,332,810

4,780,000

Shinagawa Ward, Tokyo Beneficiary Interest
Office Oval Court Ohsaki Mark West
Shinjuku Square Tower
Beneficiary Interest
Shinjuku Ward, Tokyo(additional acquisition in 14th fiscal period )Real Estate

3,205,044

4,330,000

GreaterTokyo

8,171,000

15,591,875

13,500,000

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Real Estate

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

Real Estate

633,338

829,000

Shinjuku Center Bldg.

Shinjuku Ward,Tokyo

Real Estate

21,536,163

13,200,000

Minami Azabu Building

Minato Ward, Tokyo

Real Estate

3,883,711

2,890,000

Shinagawa Canal Building

Minato Ward, Tokyo

Real Estate

1,845,136

1,740,000

Rokubancho Building

Chiyoda Ward, Tokyo

Real Estate

2,904,135

3,040,000

JPR Harajuku Building

Shibuya Ward, Tokyo

Beneficiary Interest

8,675,951

7,400,000

Tokyo Tatemono Kyobashi Bldg.

Chuo Ward, Tokyo

Real Estate

5,279,460

5,110,000

JPR Nihonbashi-horidome Bldg.

Chuo Ward, Tokyo

Beneficiary Interest

5,206,477

5,730,000

JPR Sendagaya Bldg.

Shibuya Ward, Tokyo

Real Estate

15,354,329

10,300,000

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

Beneficiary Interest

11,691,546

12,600,000

JPR Daikanyama

Shibuya Ward, Tokyo

Real Estate

2,208,860

1,300,000

Shibuya Ward,Tokyo

Beneficiary Interest

4,356,318

3,750,000

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

Real Estate

2,761,493

2,330,000

Yurakucho Ekimae Building (Yurakucho Itocia)

Chiyoda Ward, Tokyo

Real Estate

3,396,131

2,620,000

Arca East

Sumida Ward, Tokyo

Beneficiary Interest

4,777,147

5,640,000

JPR Chiba Bldg.

Chiba City, Chiba

Beneficiary Interest

2,446,681

1,550,000

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa Beneficiary Interest

2,714,099

2,450,000

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa Real Estate

Kawaguchi Center Bldg.
JPR Ueno East Bldg.

Retail JPR Jingumae 432

Office9,039,058
179,194

865,416790,000

Kawaguchi City, Saitama Beneficiary Interest

7,242,507

8,080,000

Taito Ward, Tokyo

Real Estate

3,163,769

4,660,000

Tachikawa Business Center Bldg.
Tachikawa City, Tokyo(additional acquisition in 11th fiscal period )Beneficiary Interest
Real Estate

798,0292,228,030

2,880,000

Rise Arena Bldg.

Toshima Ward, Tokyo

Real Estate

5,640,303

5,710,000

Yume-ooka Office Tower

Yokohama City, Kanagawa Real Estate

6,176,093

5,550,000

Olinas Tower

Sumida Ward, Tokyo

30,561,238

32,000,000

Real EstateTokyo Tatemono Yokohama Building

Yokohama City, Kanagawa Real Estate

7,044,916

7,010,000

Tanashi ASTA

Nishitokyo City, Tokyo

7,934,385

12,200,000

Cupo-la Main Bldg.

Kawaguchi City, Saitama Real Estate

1,941,003

2,480,000

Retail JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa Real Estate

7,303,743

5,940,000

Musashiurawa Shopping Square

Saitama City, Saitama

Beneficiary Interest

4,175,608

3,920,000

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa Beneficiary Interest

14,736,766

14,664,000

OfficeOther
CitiesRetailBeneficiary Interest

Niigata Ekinan Center Bldg.

Niigata City, Niigata

Beneficiary Interest

1,696,371

2,090,000

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

Beneficiary Interest

4,188,581

3,170,000

JPR Hakata Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

3,273,248

2,900,000

JPR Naha Bldg.

Naha City, Okinawa

Beneficiary Interest

1,462,772

1,520,000

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

Beneficiary Interest

2,452,457

3,310,000

Sompo Japan Wakayama Bldg.

Wakayama City,
Wakayama

Beneficiary Interest

1,353,498

1,710,000

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

2,375,451

2,260,000

JPR Dojima Bldg.

Osaka City, Osaka

Beneficiary Interest

2,075,996

2,180,000

JPR Hakata-chuo Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

1,809,546

1,680,000

JPR Nagoya Fushimi Building

Nagoya City, Aichi

Real Estate

4,273,861

2,630,000

JPR Umeda Loft Bldg.

Osaka City, Osaka

Beneficiary Interest

12,618,661

13,900,000

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

Beneficiary Interest

5,328,478

4,260,000

Housing Design Center Kobe

Kobe City, Hyogo

Real Estate

6,755,967

6,450,000

JPR Chayamachi Bldg.

Osaka City, Osaka

Beneficiary Interest

6,046,939

4,630,000

Total

330,536,005

313,274,000(Note ) The calculated 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.”

35

History of rental business for each of JPR's real estate and beneficiary interest in real estate investments
18th Fiscal Period (from July 1, 2010
to Dec. 31, 2010)
Location Asset
Category Class

Property Name

RentalNumber
Occupancy
Revenues
ofRate (%) (thousands ofTenants
yen)
7

90.0

328,157

2.8

7

90.0

313,3811

100.0

91,650

0.8

1

100.0

86,5440.8

JPR Ningyo-cho Bldg.

3

59.6

87,034

0.7

3

59.6

70,366

0.6

94.1

77,2550.7

100.0

73,4550.6

67.4

20,6420.2

67.4

20,4950.2

100.0

13,0790.1

100.0

12,312

0.1

9

10

2.7

JPR Crest Takebashi Bldg.

9

100.0

133,147

1.1

8

94.9

130,972

1.1

MS Shibaura Bldg.

8

100.0

552,166

4.7

8

100.0

513,295

4.5

Gotanda First Bldg.

2

100.0

135,834

1.1

2

100.0

131,459

1.1

100.0

87,3560.7

100.0

87,3560.8

100.0

38,9730.3

38,973

0.3

8

93.1

150,068

1.3

9

100.0

153,058

1.3

3

191,659
226,4233,479
572,875

1.6
1.9
0.0
4.8

3

187,748
218,130
3,351
538,412

1.6
1.9
0.0
4.7

Fukuoka Bldg.

(additional acquisition in 7th fiscal period )JPR Ichigaya Bldg.
Office Oval Court Ohsaki Mark West

1

1

100.0

Shinjuku Square Tower

20

BYGS Shinjuku Bldg.

22

100.0
82.8
82.8
92.9

21

100.0
83.7
83.7
85.1

Across Shinkawa Bldg. Annex

4

100.0

45,025

0.4

3

80.1

43,105

0.4

Shinjuku Center Bldg.

21

82.6

459,220

3.9

24

90.0

457,860

4.0

Minami Azabu Building

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

Shinagawa Canal Building

4

100.0

68,025

0.6

4

100.0

67,363

Rokubancho Building

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

JPR Harajuku Building

8

100.0

240,624

2.0

7

88.5

243,048

Tokyo Tatemono Kyobashi Bldg.

2

100.0

(Note 2)

(Note 2)2100.0(Note 2) (Note 2)(additional acquisition in 14th fiscal period )

21

0.6
2.1

JPR Nihonbashi-horidome Bldg.

6

88.1

181,584

1.5

7

100.0

178,874

JPR Sendagaya Bldg.

5

94.1

85,983

0.7

5

94.1

127,304

1.1

JPR Shibuya Tower Records Bldg.

1

100.0

345,576

2.9

1

100.0

345,576

3.0

JPR Daikanyama

4

100.0

41,636

0.4

4

100.0

41,297

0.4

JPR Jingumae 432

5

89.8

59,290

0.5

5

89.8

62,498

0.5

Shinjuku Sanchome East Bldg.

1

100.0

76,400

0.6

1

100.0

74,4990.6

Yurakucho Ekimae Building(Yurakucho Itocia)

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

1.6

Arca East

6

100.0

275,149

2.3

6

100.0

258,569

2.2

JPR Chiba Bldg.

28

80.2

119,726

1.0

30

84.6

114,724

1.0

JPR Yokohama Nihon Odori Bldg.

12

94.5

132,886

1.1

13

97.2

126,344

1.1

Shinyokohama 2nd Center Bldg.

12

85.5

49,751

0.4

12

85.5

50,6390.4

Kawaguchi Center Bldg.

38

89.3

416,839

3.5

37

82.1

404,174

3.5

JPR Ueno East Bldg.

6

175,755
61,767
79,537
243,193

1.5
0.5
0.7
2.0

5
17

168,553
60,54388,599239,567

1.5
0.5
0.8
2.1

Rise Arena Bldg.

1

83.5
100.0
96.1
100.0

1

71.8
100.0
96.1
100.0

Yume-ooka Office Tower

32

86.4

318,642

2.7

34

88.4

315,801

2.7

Olinas Tower

12

100.0

1,177,602

9.9

12

98.6

1,153,362

10.0Tokyo Tatemono Yokohama
Building

13

100.0

8,241

0.1

13

100.0

304,889

2.6

Tanashi ASTA

1

100.0

596,400

5.0

1

100.0

596,400

5.2

Cupo-la Main Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

Retail JPR Musashikosugi Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

Musashiurawa Shopping Square

3

100.0

129,061

1.1

3

100.0

129,061

1.1

Kawasaki Dice Bldg.

20

99.3

493,910

4.2

19

98.2

472,271

4.1

Niigata Ekinan Center Bldg.

8

99.3

132,327

1.1

8

99.3

132,562

1.1

Tokyo Tatemono Honmachi Bldg.

6

14.1

391,985

3.3

10

78.0

52,7370.5

JPR Hakata Bldg.

27

96.6

153,814

1.3

28

98.9

150,528

1.3

JPR Naha Bldg.

16

87.0

94,816

0.8

16

87.0

91,3470.8

Sompo Japan Sendai Bldg.

11

83.9

183,544

1.5

12

100.0

183,486

1.6

Sompo Japan Wakayama Bldg.

17

100.0

115,267

1.0

16

96.8

120,168

1.0

Tenjin 121 Bldg.

11

85.4

97,575

0.8

12

79.4

91,6600.8

JPR Dojima Bldg.

6

82.2

110,170

0.9

8

89.0

107,630

0.9

JPR Hakata-chuo Bldg.

5

88.9

79,612

0.7

5

100.0

78,6150.7

JPR Nagoya Fushimi Bldg.

2

55.1

140,297

1.2

3

66.6

65,472

0.6

JPR Umeda Loft Bldg.

1

100.0

402,411

3.4

1

100.0

402,411

3.5

Benetton Shinsaibashi Bldg.

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

Office Tachikawa Business Center Bldg.

(additional acquisition in 11th fiscal period )GreaterTokyo

OfficeOther
CitiesRetail17

Housing Design Center Kobe

1

100.0

(Note 2)

(Note 2)1100.0(Note 2) (Note 2)

JPR Chayamachi Bldg.

7

100.0

143,501

1.2

7

100.0

145,268

1.3

479

93.5

11,870,005

100.0

493

94.7 11,529,624

100.0

Total

36

% of
Total

Kanematsu Bldg. Annex
Shin-Kojimachi Bldg.

RetailRentalNumber
Occupancy RevenuesofRate (%)(thousands
Tenantsof yen)

% of
Total

Kanematsu Bldg.

(additional acquisition in 2nd fiscal period )(additional acquisition in 6th fiscal period)

Tokyo
CBDs

19th Fiscal Period (from Jan. 1, 2011
to June 30, 2011)(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg. , Rise Arena Bldg. and Kawasaki Dice Bldg. when a single
tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural. The tenants ofShinjuku Square Tower, Shinjuku Center Building, Rise Arena Bldg. and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where therent paid by the tenants fluctuates in accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) The tenant to whom the entire portion owned by JPR is leased has not agreed to our disclosing rents and other information. Therefore, JPR does not disclose them as it falls undercases in which disclosure is impossible due to inevitable reasons.

(4) Status of Other Properties
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Acquired
Properties on P34.
There is no incorporation of main specific assets which are main investment targets of JPR other than listed on
P34 as of the end of 19th period.

37

Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures

The following are major items of capital expentidures for currently planned renovations, etc. for JPR-owned
real estate and entrusted real estate regarding beneficiary interests in real estate. Further, the planned
construction expenses include portions that are classified as expenses in accounting.
Planned (millions of yen)

Property Name

Location

PurposeSchedule

Total
Value

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Housing Design Center Kobe Kobe City, Hyogo

Payment
duringthe 19th
Fiscal Period

AmountAlreadyPaid

2nd phase of replacement of
4th, 7th - 10th and 12th floor air
conditioning units

Jul. 2011~
Dec. 2011

183

―

―

Renewal of central monitoringboardsAug. 2011~
Dec. 2011

81

―

―

Shinjuku Center Bldg.

Shinjuku Ward,Tokyo

2nd phase of renewal of
passenger elevators

Oct. 2010~
Nov. 201174―

JPR Harajuku Bldg.

Shibuya Ward,Tokyo

Replacement of 4th and 6th - 9th May 2011~
floor air conditioning units
Dec. 2011

74

―

―

Shinyokohama 2nd Center
Bldg.

Yokohama City,
Kanagawa

1st phase of replacement of 7th - Oct. 2011~
12th floor air conditioning units
Dec. 2011

64

―

―

Minami Azabu Bldg.

Mianto Ward,Tokyo

1st phase of replacement of 5th - Oct. 2011~
9th floor air conditioning units
Dec. 2011

54

―

―

JPR Ningyocho Bldg.

Chuo Ward,Tokyo

Replacement of 6th - 8th floor air Jul. 2011~
conditioning units
Aug. 2011

50

―

―

Tokyo Tatemono Honmachi
Bldg.

Osaka City,
Osaka

Renovation of 9th floor

Jul. 2011~
Aug. 2011

36

―

―

JPR Umeda Loft Bldg.

Osaka City,
Osaka

Replacement of cinema toilets on
1st basement floor

Jul. 2011~
Dec. 2011

33

―

―

14

(2) Capital Expenditures during the 19th Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during
the 19th period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain andenhance 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 264 million yen (Note), which was appropriated as expenditures for repair andmaintenance.
Property Name

Location

Purpose

PeriodConstruction
Expenses(millions of yen)

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1st phase of replacement of air
conditioning units

Feb. 2011~
Jun. 2011

191

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

Change in office specifications on
51st floor

Apr. 2011~
Jun. 2011

47

Jan. 2011~
Jun. 2011

42

Apr. 2011~
Jun. 2011

30

Jan. 2011~
Jan. 201117

May 2011~
Jun. 201116

JPR Shibuya Tower Records Bldg. Shibuya Ward, Tokyo Renewal of exterior wall seal
Tokyo Tatemono Honmachi Bldg. Osaka City, Osaka
JPR Nagoya Fushimi Bldg.

Nagoya City, Aichi

Minami Azabu Bldg.

Minato Ward, Tokyo

Other Properties

Renovation of 7th – 8th floor
proprietary areas and 7th – 9th
common areas
Installation of office automation
floors at 2nd – 4th floor proprietaryareas
Replacement of interior fittings of
2nd - 8th floor common areas

Repair of common areas, installation of officeautomation floors, air conditioners, and disasterprevention facilities
Total

202
547

(Note) Expenditures for repair and maintenance included 6 million yen of construction management fees paid to construction management companies as wellas the amounts for repair and maintenance constructions themselves.

38

(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) such as depreciation in order to conduct large-scale repairs and maintenance work, based onlong-term repairs and maintenance plans for individual properties.

(Millions of yen)

15th
Fiscal Period(Jan. 1, 2009 June 30, 2009)

16th
Fiscal Period(July 1, 2009 Dec. 31, 2009)

17th
Fiscal Period(Jan. 1, 2010 June 30, 2010)

18th
Fiscal Period(July. 1, 2010 Dec 31, 2010)

19th
Fiscal Period(Jan. 1, 2011 June 30, 2011)

Balance of deposits at
end of previous period

768

783

731

857

737

Deposits during the period

555

391

238

121

404

540

443

112

241

374

783

731

857

737

767

Operation Period

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

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

18th Fiscal Period (July 1, 2010- Dec. 31, 2010

19th Fiscal Period (Jan. 1, 2011- June 30, 2011(a) Asset Management Fees (Note)

421,951

415,874

Fixed compensation

75,00075,000

Incentive-based compensation 1

218,208

213,692

Incentive-based compensation 2

128,743

127,182(b) Administrative Service and Custodian Fees

71,06471,074(c) Directors' Fee

6,600

6,600

(d) Trust Fees

49,55249,300(e) Other Expenses

73,41387,138622,582629,988

Total(Note) Aside from the amounts of the asset management fees entered above, a total 25,750 thousand yen for the 18th fiscal period has been paid for asset managementof the acquired properties and has been included in the book value of each property.

(2) Status of Borrowings

As of June 30, 2011 JPR has the following borrowings.
Category

Balance as of Balance as of
Average
Drawdown Dec. 31, 2010 June 30, 2011 Interest Rate
RepaymentDate(millions of(millions of(%) (Note 1)
Date
yen)
yen)
(Note 2)

LenderResona Bank, Limited

Jul. 2, 2010

Mizuho Corporate Bank, Jul. 2, 2010
Ltd.
Dec. 27, 2010

4,000

4,000

0.860

Jul. 4, 2011
Jul. 4, 2011

Repayment
Method

1,000

1,000

0.860

1,000

1,000

0.858

Short-Term Mitsubishi UFJ Trust andDec. 27, 2010
Borrowings Banking Corporation

3,000

3,000

0.858

Principal
Jul. 4, 2011 lump sum
repayment on
Jul. 4, 2011 maturity

Mizuho Trust & Banking
Dec. 27, 2010
Co., Ltd.

1,000

1,000

0.858

Jul. 4, 2011

10,00010,000

Total

Use

Remarks

Unsecured/(Note 3) Unguaranteed/

Non-subordinated39

(2) Status of Borrowings (Continued)
Category

Balance
as ofDec. 31,2010

Balance asofJune 30,
2011

Mar. 31, 2009
Jun. 26, 2009
Jun. 26, 2009

50
200
200

50
200
200

Jun. 26, 2009

166

Drawdown
Date

LenderDevelopment Bank of JapanInc.
Mizuho Corporate Bank, Ltd.
Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking
Corporation
Mitsubishi UFJ Trust andBanking Corporation
The Hachijuni Bank, Ltd.
Current
Portion of Sompo Japan Insurance Inc.
Long-term
Borrowings The Chugoku Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Iyo Bank, Ltd.
Mizuho Corporate Bank, Ltd.

Repayment
Method

1.740
3.190
2.449

(Note 4)(Note 5)(Note 6)(Note 4)(Note 5)(Note 6)

166

2.390

(Note 7)(Note 7)(Note 8)(Note 8)Jun. 29, 2009

100

100

2.440

Aug. 29, 2006
Jun. 26, 2009
Dec. 26, 2006
Apr. 11, 2007
Jun. 26, 2009
Apr. 11, 2007
Apr. 11, 2007
Apr. 11, 2007
Feb. 5, 2008

6,000
―
―
―
―
―
―
―
5,000

6,000
1,000
1,000
2,000
2,000
2,000
2,000
1,000
―

1.734
2.156
1.642
1.676
2.156
1.676
1.676
1.676
1.181

Use

Remarks

Aug. 29, 2011
Jun. 27, 2012
Unsecured/
Apr. 11, 2012
Unguaranteed/
Non-subordinatedApr. 11, 2012
(Note 3)
Jun. 27, 2012
Apr. 11, 2012
Apr. 11, 2012 Principal lump
Apr. 11, 2012 sum repayment
on maturity
Feb. 4, 2011

5,000

―

1.380 Mar. 26, 2011

Aozora Bank, Ltd.

Aug. 26, 2008

3,400

3,400

1.593 Aug. 26, 2011

Meiji Yasuda Life Insurance
Company

Jun. 21, 2002

4,783

―

2.050 Jun. 21, 2011

Nov. 24, 2005

24,8995,000

21,1165,000

1.453 Nov. 27, 2012

Mar. 26, 2008

2,000

2,000

1.725 Mar. 26, 2015

Dec. 26, 2006
Taiyo Life Insurance Company Jun. 4, 2008
Sep. 24, 2010
Dec. 26, 2006
Daido Life Insurance Company
Feb. 5, 2008
Dec. 26, 2006
The Hachijuni Bank, Ltd.
Sep. 24, 2010
Dec. 27, 2006
Sumitomo Life Insurance
Company
Jun. 4, 2008
Apr. 11, 2007
Sompo Japan Insurance Inc.
Jun. 26, 2009
Apr. 11, 2007
The Chugoku Bank, Ltd.
Sep. 24, 2010
Apr. 11, 2007
The Bank of Fukuoka, Ltd.
Sep. 24, 2010
The Iyo Bank, Ltd.
Apr. 11, 2007
Mar. 31, 2009
Development Bank of JapanInc.
Jun. 26, 2009
Jun. 26, 2009
May 28, 2010
Mizuho Corporate Bank, Ltd.
Feb. 4, 2011

1,000
1,000
1,000
1,000
1,000
1,000
1,000
2,000
2,000
2,000
2,000
2,000
1,000
2,000
1,000
1,000
870
3,500
5,500
3,000

1,000
1,000
1,000
1,000
1,000
―
1,000
2,000
2,000
―
―
―
1,000
―
1,000
―
845
3,400
5,400
3,000

―

5,000

1.858 Dec. 27, 2013
2.035 Jun. 4, 2013
1.275 Sep. 24, 2015
1.858 Dec. 27, 2013
1.666 Feb. 5, 2015
1.642 Apr. 11, 2012 Principal lump
1.070 Sep. 24, 2013 sum repayment
1.858 Dec. 27, 2013 on maturity
2.257 Jun. 4, 2015
1.676 Apr. 11, 2012
2.156 Jun. 27, 2012
1.676 Apr. 11, 2012
1.070 Sep. 24, 2013
1.676 Apr. 11, 2012
1.070 Sep. 24, 2013
1.676 Apr. 11, 2012
1.740
(Note 4)(Note 4)3.190
(Note 5)(Note 5)2.449
(Note 6)(Note 6)
1.279 Nov. 27, 2013 Principal
Unsecured/
lump sum
Unguaranteed/
1.414 Feb. 4, 2016 repayment
Non-subordinated(Note 3)on maturity

Jun. 26, 2009
Bank of Tokyo-Mitsubishi UFJ,May 28, 2010
Ltd.
Mar. 25, 2011

4,585
3,000
―

4,502
3,000
5,000

Mitsubishi UFJ Trust andBanking Corporation

Jun. 26, 2009

1,000

―

Jun. 29, 2009
Jul. 8, 2010
Jul. 3, 2009
Mar. 30, 2010

2,750
3,000
900
1,000

2,700
3,000
900
1,000

2.440
(Note 8)1.190 Jun. 27, 2013
2.076 Jul. 3, 2012
1.322 Sep. 30 2013

American Family Life
Assurance Company ofColumbus

Sep. 7, 2009

5,000

5,000

3.440 Sep. 6, 2019

ORIX Trust and Banking
Corporation

Feb. 4, 2010
May 28, 2010

1,000
2,000

1,000
2,000

1.376 Feb. 4, 2013
1.281 Nov. 27, 2013

The Shinkumi Federation
Bank

Feb. 4, 2010

3,000

3,000

1.376 Feb. 4, 2013

Mizuho Trust & Banking Co.,
Ltd.

Feb. 4, 2010

3,000

3,000

1.376 Feb. 4, 2013

Shinsei Bank, Ltd.

Sep. 24, 2010

2,000

2,000

1.070 Sep. 24, 2013

The Nishi-Nippon City Bank,Ltd.

May 27, 2011

―

3,000

1.149 May 27, 2016

Jun. 21, 2011

―

4,000

1.800 Jun. 21, 2018

Mar. 28, 2003

4,400

4,400

1.750 Mar. 28, 2013

78,505

84,147

Total

Sumitomo Mitsui Banking
Corporation
Aozora Bank, Ltd.

Meiji Yasuda Life Insurance
Company (Note 9)
Total

40

RepaymentDate(millions ofyen)Bank of Tokyo-Mitsubishi UFJ,
Mar. 26, 2008
Ltd.

Zenkyoren (National Mutual
Insurance Federation ofAgricultural Cooperatives)

Long-Term
Borrowings(millions ofyen)

Average
Interest Rate(%) (Note 1)(Note 2)

Secured/
Unguaranteed/
Non-subordinated2.390(Note 7)(Note 7)1.279 Nov. 27, 2013
Principal lump
1.198 Mar. 25, 2016
sum repayment
2.156 Jun. 27, 2012 on maturity(Note 8)Principal lump
sum repayment
on maturity

Unsecured/
Unguaranteed/
Non-subordinated(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal point. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
(Note 2) Short-term borrowings are floating-rate borrowings. Long-term borrowings are fixed-rate borrowings.
(Note 3) Funds are mainly used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses) , repaying borrowings and amortization of corporate bonds.
(Note 4) The borrowings are subject to repayment of 25 million yen on Jun. 27, 2009 and hereafter every 6 months. In addition, repayment of 820 million yen will be made on the maturity date, Jun. 27, 2013.
(Note 5) The borrowings are subject to repayment of 100 million yen on Dec. 27, 2009 and hereafter every 6 months. In addition, repayment of 2,100 million yen will be made on the maturity date, Jun. 27, 2019.
(Note 6) The borrowings are subject to repayment of 100 million yen on Dec. 25, 2009 and hereafter every 6 months. In addition, repayment of 5,100 million yen will be made on the maturity date, Jun. 27, 2014.
(Note 7) The borrowings are subject to repayment of 83 million yen on Dec. 27, 2009 and hereafter every 6 months. In addition, repayment of 4,253 million yen will be made on the maturity date, Jun. 27, 2014.
(Note 8) The borrowings are subject to repayment of 50 million yen on Dec. 25, 2009 and hereafter every 6 months. In addition, repayment of 2,550 million yen will be made on the maturity date, Jun. 27, 2014.
(Note 9) JPR repaid on July 8, 2011, ahead of the maturity date, 4.4 billion yen long-term borrowings from Meiji Yasuda Life Insurance Company undertaken on Mar. 28, 2003.

(3) Corporate Bonds

Details of corporate bonds outstanding as of June 30, 2011 are as follows.
Name

Issue Date

Balance as ofDec. 31, 2010
(millions of yen)

Balance as ofJune 30, 2011
(millions of yen)

Coupon Rate(per annual)

Maturity
Date

Third Series ofCorporate
Bonds

Feb. 12, 2004

5,000

5,000

2.32

Feb. 12,2014

Fifth Series ofCorporate
Bonds

Nov. 4, 2004

5,000

5,000

1.44

Nov. 4,2011

Sixth Series ofCorporate
Bonds

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4,2014

Seventh Series ofCorporate
Bonds

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14,2026

Eighth Series ofCorporate
Bonds

Jul. 23, 2007

9,000

9,000

1.85

July 23,
2012

Ninth Series ofCorporate
Bonds

Jul. 23, 2007

6,000

6,000

2.10

July 23,
2014

Tenth Series ofCorporate
Bonds

May 30, 2008

3,000

―

1.71

May 30,2011

Eleventh Series ofCorporate
Bonds

Mar. 12, 2010

6,000

6,000

1.68

Mar. 12,2015

Twelfth Series ofCorporate
Bonds

May 21, 2010

7,000

7,000

1.27

May 21,
2015

50,50047,500

Total

Redemption

Use

Purchase ofproperties
andrepayment ofborrowings

Remarks(Note 1)

(Note 2)

Bulletpayment
Repayment ofborrowings(Note 3)Purchase ofproperties(Note 1) These are equipped with a same rank rider limited among corporate bonds, and with limitations on private placement among small number of investors and on resale among
qualified institutional investors.
(Note 2) These are equipped with a same rank rider limited among corporate bonds and limitations on resale among qualified institutional investors.
(Note 3) These are equipped with a same rank rider limited among certain corporate bonds.

Acquisitions and Sales during the 19th Fiscal Period(1) Aqcuisitions and Sale of Real Estate and Asset-Backed Securities
There were no acquisitions or sales of real estate and asset-backed securities.

(2) Acquisition and Sale of Other Assets
There were no acquisitions or sales of other assets.

41

(3) Survey on Values of Specified Assets, etc.
There was no survey on values of specified assets, etc.

(4) Transactions with Interested Parties and Major Shareholders
A.Transaction Status
No transaction of specified assets or other deals with interested parties were conducted during the 19th fiscal
period.
B.Value of Fee Expenses
Category(Thousands of yen)
Total Paid Fees(A)

Breakdown of Transaction with Interested Parties
Paid Party
Tokyo Tatemono Co., Ltd.

Management Fees
(Note 2)

Paid Amount(B)

Ratio to Total
Amount (B/A)(% of total)

195,52085.6

228,426 Yasuda Real Estate Co., Ltd.

9,470

4.1

Yuraku Real Estate Co., Ltd.

3,361

1.5

Tokyo Tatemono Co., Ltd.

424,626

81.6

Yasuda Real Estate Co., Ltd.

22,551

4.3

7,081

23.7

Outsourcing Fees

520,250

Tenant Brokerage Fees,etc.

29,832 Tokyo Tatemono Co., Ltd.

(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreement with JPR and isregulated as designated in Article 123 of the Enforcement Order of the Investment Trusts and Investment Corporations Law and article 26-27 of the regulation on management
reports in regard to investment trusts and investment corporations of The Investment Trusts Association, and the major shareholders of the asset management company
regulated defined in Article 29-4-2 of the Financial Instruments and Exchange Law.
(Note 2) The management fees indicated in the above table include construction management fees (total of 12,455 thousand yen for JPR) 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 during the 19th fiscal period.
Tokyo Tatemono Co., Ltd.
Yasuda Real Estate Co., Ltd.
Tokyo Tatemono Tecno-build Co., Ltd.
Tokyo Real Estate Management Co., Ltd.
Taisei Corporation
Yuraku Real Estate Co., Ltd.

42

269,027 thousand yen
48,905 thousand yen
82,640 thousand yen
15,000 thousand yen
88,100 thousand yen
16 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
the class 1 financial instruments transaction business, class 2 financial instruments transaction business, land andbuilding transaction business, or real estate syndication business, and has no such transactions with JPR.

Overview of Accounting(1) Assets, Liabilities, Principal, and Profits and Loss

Please refer to the Balance Sheets, Statements of Income and Retained Earnings, Statements ofUnitholders' Equity and Notes to Financial Statements as well as Distribution Information.

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

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

Overview of Investment Trust Beneficiary Certificates of JPR(1) Acquisition

Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired 40 units of JPR
on September 14, 2001, and an additional 60 units on January 22, 2002 as a result of an investment unit split(2.5 units for one existing unit).

(2) Units HeldThe number of investment units held by Tokyo Realty Investment Management, Inc. has remained at 100
units through June 30, 2011 with the total investment unchanged at 20 million yen. The amount of units held isimmaterial versus the total units outstanding of JPR.

43

Other(1) Notice

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

March 25, 2011

(2) Other

Approved Item

Overview

Necessary amendments were made toagreement provisions in accordancewith the changes made to the content of
Execution of the Agreement Concerning consigned services and the service fees.
Changes to the Administrative Service
In addition, corrections of wording andand Asset Custodian Agreements and of other changes were made in accordance
the Memorandum Concerning Service
with the revisions made to the Law
Fees
Concerning Investment Trusts andInvestment Corporations and other laws
and regulations (amendments to become
effective on September 14, 2011).

Unless otherwise stated, figures indicated in this Business Report are rounded off for values and rounded forratios to the nearest figure. Therefore, the aggregation of each individual item may not add up to the total
from hereon.

44Balance Sheets(As of December 31, 2010 and June 30, 2011)(Thousands of yen)
End of 18th Fiscal Period End of 19th Fiscal Period(information only)(as of December 31, 2010)(as of June 30, 2011)% Change

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets￥ 14,090,256
13,934,140
176,154
189,512
23
6,095
28,396,182￥ 14,619,039
13,832,244
209,621
151,521
11
5,354
28,817,793

1.5%

49,822,056(5,197,068)
44,624,987
74,986,011(17,357,507)
57,628,504
33,292(4,631)
28,661
105,894(33,789)
72,105560,066(208,192)
351,873
1,388,373(838,152)
550,22136,917(14,704)
22,213103,099(58,562)
44,536103,175,872
120,491,113
16,495
1,699
327,008,283

50,219,520(5,973,016)
44,246,504
75,159,186(18,417,887)
56,741,299
33,292(5,650)27,642
108,762(37,564)
71,198561,538(226,351)
335,187
1,394,406(881,173)
513,232
37,236(17,246)
19,989104,414(65,123)
39,290103,206,385
120,491,113
44,138
3,605
325,739,586(0.4%)

4,794,109
4,497
4,798,607

4,794,109
8,405
4,802,514

0.1%

49,520501,426
550,946
332,357,836

49,520465,803515,323
331,057,425(6.5%)(0.4%)

150,562
150,562￥ 360,904,581

129,651
129,651￥ 360,004,870(13.9%)(0.2%)

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
LandLand in trust
Construction in progress
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets

Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets(Note) See accompanying Notes to Financial Statements.

45

(Thousands of yen)
End of 18th Fiscal Period(information only)(as of December 31, 2010)

End of 19th Fiscal Period￥ 1,509,373(as of June 30, 2011)% Change

Liabilities
Current liabilities
Operating accounts payable￥ 1,149,687

Short-term loans payable

10,000,000

10,000,000

Current portion of long-term loans payable

24,899,000

21,116,000

Current portion of investment corporation bonds

8,000,000

5,000,000

Accounts payable-other

550,017499,538

Accrued expenses

332,028

327,241

Income taxes payable
Accrued consumption taxes
Advances received
Provision for loss on disaster
Other
Total current liabilities

605

605

157,515

189,967

1,498,924

1,599,028

―

3,093

35,00035,00046,622,779

40,279,847(13.6%)

Noncurrent liabilities
Investment corporation bonds

42,500,000

42,500,000

Long-term loans payable

78,505,000

84,147,000

Tenant leasehold and security deposits

7,428,462

7,342,133

Tenant leasehold and security deposits in trust

10,345,814

10,283,837

Total noncurrent liabilities

138,779,277

144,272,970

4.0%

Total liabilities
Net assets
Unitholders’ equity

185,402,057

184,552,817(0.5%)

Unitholders' capital

171,339,818

171,339,818

Deposits for advanced depreciation

73,94673,946

Total voluntary deposits

73,94673,946

4,088,758

4,038,287

Surplus
Voluntary deposits

Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity

Total net assets
Total liabilities and net assets(Note) See accompanying Notes to Financial Statements.

46

4,162,705

4,112,234(1.2%)

175,502,523

175,452,052(0.0%)

175,502,523

175,452,052(0.0%)￥ 360,904,581￥ 360,004,870(0.2%)

Statements of Income and Retained Earnings(For the six-month periods end December 31, 2010 and June 30, 2011)(Thousands of yen)

18th Fiscal Period

19th Fiscal Period(information only)(July 1, 2010 – December 31, 2010) (January 1, 2011 – June 30, 2011)% Change

Operating revenue
Rent revenue-real estate￥ 11,870,005￥ 11,529,624

Total operating revenue
Operating expenses

11,870,005

11,529,624

5,361,037

5,296,139

Asset management fee

Expenses related to rent business

421,951

415,874

Administrative service and asset
custody fees

71,06471,074

Directors' compensations

6,600

6,600

Trust fees

49,55249,300(2.9%)

Other operating expenses

73,41387,138

Total operating expenses
Operating income
Non-operating income

5,983,620

5,926,127(1.0%)

5,886,384

5,603,496(4.8%)

6,576

3,998

―

42,132

Interest income
Income on settlement ofmanagement association accounts
Other

Total non-operating income
Non-operating expenses

6,313

5,847

12,88951,979Interest expenses

1,064,789

981,853

Borrowing expenses

287,872

105,648

Interest expenses on investment
corporation bonds

478,092

469,446

Amortization of investment corporationbond issuance costs

21,90820,911

Other

Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on disaster

Total extraordiary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

303.3%

6,698

2,148

1,859,361

1,580,007(15.0%)

4,039,912

4,075,468

0.9%―

64,122―64,122―

4,039,912

4,011,345(0.7%)

605

605

22

11

627

616

4,039,284

4,010,728(0.7%)

49,47327,558(44.3%)￥ 4,088,758￥ 4,038,287(1.2%)(1.8%)(Note) See accompanying Notes to Financial Statements.

47

Statements of Unitholders' Equity(For the six-month periods end December 31, 2010 and June 30, 2011)(Thousands of yen)

18th Fiscal Period

19th Fiscal Period(information only)(July 1, 2010 – December 31, 2010) (January 1, 2011 – June 30, 2011)

Unitholders' equity
Unitholders' capital
Balance at the end of previous period￥ 171,339,818￥ 171,339,818

Changes of items during the period――

171,339,818

171,339,818―

73,946

Provision of deposits for advanced
depreciation

73,946―

Total change of items during the period

73,946―73,94673,946

4,963,970

4,088,758(4,840,550)(4,061,200)

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

Surplus
Voluntary deposits
Balance at the end of previous period
Change of items during the period

Balance at the end of current period
Unappropriated retained earnings (undisposed
loss)
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Provision of deposits for advanced
depreciation
Net income
Total changes of items during the period
Balance at the end of current period(73,946)―

4,039,284

4,010,728(875,211)(50,471)

4,088,758

4,038,287

4,963,970

4,162,705

Total surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period(801,265)(50,471)

4,162,705

4,112,234

176,303,789

175,502,523

Total unitholders' equity
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period(801,265)(50,471)

175,502,523

175,452,052

176,303,789

175,502,523

Total net assets
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period

Balance at the end of current period(Note) See accompanying Notes to Financial Statements.

48(801,265)(50,471)￥ 175,502,523￥ 175,452,052

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 accordance with accounting principles generally accepted in Japan (JapaneseGAAP), including provisions set forth in the Investment Trust Law, the Company Law and the related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR,
which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial
statements, certain reclassifications have been made to the financial statements issued domestically inorder to present them in a format which is more familiar to readers outside Japan. In addition, the notes
to financial statements include information which might not be required under Japanese GAAP but ispresented herein as additional information.
JPR's accounting period ends at the end of June and December. JPR's 19th accounting period began on
January 1, 2011 and ended on June 30, 2011.

Significant Accounting Policies
1. Depreciation Method for Property and Equipment(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property
and equipment ranges are as follows:
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures

3 - 65 years
10 - 35 years
3 - 17 years
3 - 20 years

Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated inthree years based on the Corporation Tax Law.
(2) Intangible Assets
Intangible assets are depreciated utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are depreciated utilizing the straight-line method.

2. Accounting for Deferred Assets
Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are depreciated utilizing the straight-line method over theredemption periods.

3. Provision for Loss on Disaster
An amount that can be reasonably estimated at the end of the fiscal period has been recorded in order toprepare for restoration costs and other expenditures associated with the Great East Japan Earthquake.

4. Standards for Recording Revenues and Expenses

Accounting Treatment of Taxes on Properties and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR adopts the methodof charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental
expenses. Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers
during the first fiscal period as an acquisition cost, not as expenses, in connection with the acquisition ofreal estate or entrusted beneficiary interest with real estate as entrusted property. During the 19th fiscal
period, no amount equivalent to the property taxes was included as an acquisition cost of real estate.

49

4. Other Significant Items Fundamental to Preparing the Financial Statements(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 arerecorded in relevant accounts on the balance sheets and statements of income.
Fur thermore, the following material accounts are separately stated in the balance sheet 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
National and local consumption taxes are accounted with the consumption taxes excluded.

Notes to Balance Sheets
1. Assets Pledged as Collateral and Secured Liabilities(Thousands of yen)

End of 18th Fiscal Period
Assets pledged as collateral are as follows:
Cash and deposits in trust
Buildings (net)
Buildings in trust (net)
Structures in trust (net)
Machinery and equipment (net)
Machinery and equipment in trust (net)
Tools, furniture and fixtures in trust (net)LandLand in trust
Other (intangible assets)
Total

Secured liabilities are as follows:
Current portion of long-term loans payable
Long - term loans payable
Tenant leasehold and security deposits
Total

50

(information only)(as of December 31, 2010)

End of 19th Fiscal Period(as of June 30, 2011)￥ 2,193,011
131,982
6,526,983
3,791
4,451
13,1071,767
399,183
8,536,013
143￥ 17,810,437￥ 595,995
130,1142,097,116
3,532
4,280
6,544
1,498
399,183
4,920,350
140￥ 8,158,754

End of 18th Fiscal Period

End of 19th Fiscal Period(information only)(as of December 31, 2010)￥ 4,783,000
4,400,000
15,536￥ 9,198,536(as of June 30, 2011)￥
4,400,000
15,536￥ 4,415,536

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

End of 18th Fiscal Period(information only)(as of December 31, 2010)

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

End of 19th Fiscal Period(as of June 30, 2011)￥16,000,000￥16,000,000￥16,000,000￥16,000,000

3. Minimum Total Unitholders' Equity Designated in Article 67- 4 in the Investment Trust Law(Thousands of yen)

End of 18th Fiscal Period(information only)(as of December 31, 2010)￥50,000

End of 19th Fiscal Period(as of June 30, 2011)￥50,000

Notes to Statements of Income and Retained Earnings
1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business
A. Rent Revenue-Real Estate
Rent revenue
Rents
Common charges
Parking revenues
Advertising expenses
Antenna use fees
Other
Subtotal
Other rental revenues

18th Fiscal Period(information only)(July 1, 2010 December 31, 2010)(Thousands of yen)

19th Fiscal Period(January 1, 2011 June 30, 2011)￥8,747,251
1,720,736
204,512
19,305
10,221
29,948
10,731,976￥ 8,780,799
1,773,110
209,532
22,128
10,54729,318
10,825,436

Incidental income
745,605
Time-based parking revenues
10,089Cancellation charges
119,318
Income equivalent to expenses for restoration to as is condition 229,571
Other miscellaneous income
33,444
Subtotal
1,138,029￥11,870,005
Total rent revenue-real estate

604,478
10,05327,48339,33022,841
704,187￥11,529,624

B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
Depreciation
Other
Total expenses related to rent business
C. Profits (A-B)

￥512,149
754,056
975,068
30,912
247,869
213,042
553,550
1,929,036
145,351￥5,361,037￥520,250
625,439
1,068,605
28,743257,907
214,171555,064
1,911,469
114,487￥5,296,139￥6,508,967￥6,233,485

2. Loss on Disaster
Loss on disaster for the period ended June 30, 2011 represents the restoration costs and other expendituresassociated with the Great East Japan Earthquake. Furthermore, the recorded amount includes 3,093
thousand yen as provision of allowance for disaster loss.

51

Notes to Statements of Changes in Unitholders' Equity

18th Fiscal Period(information only)(July 1, 2010 December 31, 2010)

715,000 units

The number of units outstanding

19th Fiscal Period(January 1, 2011 June 30, 2011)
715,000 unitsTax Effect Accounting
1. Breakdown of Main Causes for Deferred Tax Assets(Thousands of yen)

(Deferred tax assets)

18th Fiscal Period(information only)(July 1, 2010 December 31, 2010)

Lump-sum depriciated assets not deductible for tax purposes
Total deferred tax assets
Net deferred tax assets

19th Fiscal Period(January 1, 2011 June 30, 2011)

￥ 23
23
￥ 23

￥ 11
11
￥ 11

2. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the
Effective Tax Rate after Applying Tax Effect Accounting
18th Fiscal Period
19th Fiscal Period

Effective statutory tax rate
(Adjustment)
Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting(information only)(July 1, 2010 December 31, 2010)39.33%(January 1, 2011 June 30, 2011)39.33%(39.33%)
0.02%
0.02%

(39.33%)
0.02%
0.02%

Property and Equipment Leased to JPR

52

18th Fiscal Period (information only)(July 1, 2010 - December 31, 2010)

19th Fiscal Period(January 1, 2011 - June 30, 2011)

No property and equipment leased to JPR

No property and equipment leased to JPR

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
management for interest rate fluctuation risk and other hedging purposes. Please note that JPR is notengaged 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 by complying with the JPR Asset Management Guidelines and other rules and regulations. The
following outlines the description of individual financial instruments and the associated risks, and the risk
management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit
risks, but risks are managed through such measures as setting a minimum credit rating for the financial
institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/
redemption, but liquidity risks are managed through such measures as procuring funds from the capital
market by increasing capital, executing a commitment line agreement with the main lending financial
institutions, and also having statements of cash receipts and disbursements prepared by the financial division.
(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values basedon reasonable calculations when there is no market price. Certain assumptions, etc. are adopted in calculating
those values and there may be cases where the values will vary when different assumptions, etc. are adopted.
2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of December 31, 2010 and June 30, 2011,
and the difference between these amounts. Please note that the following tables do not include those forwhich discerning of estimated fair value is recognized to be extremely difficult (please refer to Note 3).
End of 18th Fiscal Period (information only) (as of December 31, 2010)(Thousands of yen)

Carrying Value

Estimated Fair Value(Note 1)

(Note 1)

￥ 14,090,256￥ 14,090,256

2) Cash and deposits in trust

13,934,140

13,934,140

3) Short-term loans payable(10,000,000)(10,000,000)

4) Current portion of long-term loans payable1) Cash and deposits

Difference￥

112,795(24,899,000)(25,011,795)

5) Current portion of investment corporation bonds(8,000,000)(8,050,718)

50,7186) Investment corporation bonds(42,500,000)(43,238,249)

738,249￥(78,505,000)￥(80,659,976)￥2,154,976

7) Long-term loans payable
End of 19th Fiscal Period (as of June 30, 2011)(Thousands of yen)

Difference

Carrying Value

Estimated Fair Value(Note 1)

(Note 1)

￥ 14,619,039￥ 14,619,039

2) Cash and deposits in trust

13,832,244

13,832,244

3) Short-term loans payable(10,000,000)(10,000,000)

4) Current portion of long-term loans payable(21,116,000)(21,239,811)

123,8115) Current portion of investment corporation bonds(5,000,000)(5,025,636)

25,636

6) Investment corporation bonds(42,500,000)(43,178,775)

678,775￥(84,147,000)￥(86,029,097)￥1,882,097

1) Cash and deposits

7) Long-term loans payable￥53

(Note 1) Those stated under liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thus stated at that book value.
(3) Short-term loans payable
As these are settled within a short period of time and also have floating interest rates, the estimated fair value is approximately the same as the book value and is thusstated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
The estimated fair value of these are based on the method of calculating by discounting the sum total amount of principal and interest by the rate assumed as
being applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these, those with market price are calculated based on market price and those with no market price are calculated according to(4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated 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 estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since
it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits and the carrying value of tenant leasehold and security deposits in trust.

End of 18th Fiscal Period (information only) (as of December 31, 2010)(Thousands of yen)

Carrying Value
Tenant leasehold and security deposits￥7,428,462

Tenant leasehold and security deposits in trust￥10,345,814

End of 19th Fiscal Period (as of June 30, 2011)(Thousands of yen)

Carrying Value
Tenant leasehold and security deposits￥7,342,133

Tenant leasehold and security deposits in trust￥10,283,837(Note 4) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.

End of 18th Fiscal Period (information only) (as of December 31, 2010)(Thousands of yen)Due in One Year or Less
Cash and deposits￥14,090,256

Cash and deposits in trust￥13,934,140

End of 19th Fiscal Period (as of June 30, 2011)(Thousands of yen)Due in One Year or Less
Cash and deposits￥14,619,039

Cash and deposits in trust￥13,832,244(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due
after the settlement of accounts.

54

End of 18th Fiscal Period (information only) (as of December 31, 2010)(Thousands of yen)Due in One Year Due after One Yearor Less through Two Years
Short-term loans payable￥10,000,000

Investment corporation bonds￥8,000,000￥9,000,000

Long-term loans payable￥24,899,000￥17,616,000

Due after Two
Years throughThree Years￥34,886,000(Thousands of yen)

Due after Three Year Due after Four Year Due after Five Years
through Four Years through Five Years
Short-term loans payable
Investment corporation bonds￥16,000,000￥13,000,000￥ 4,500,000

Long-term loans payable￥12,103,000￥ 6,200,000￥ 7,700,000

End of 19th Fiscal Period (as of June 30, 2011)(Thousands of yen)Due in One Year Due after One Yearor Less through Two Years

Due after Two
Years throughThree Years

Short-term loans payable￥10,000,000

Investment corporation bonds￥5,000,000￥9,000,000￥5,000,000

Long-term loans payable￥21,116,000￥22,811,000￥30,336,000(Thousands of yen)

Due after Three Year Due after Four Year Due after Five Years
through Four Years through Five Years
Short-term loans payable
Investment corporation bonds￥24,000,000

Long-term loans payable￥5,200,000￥4,500,000￥14,200,000￥11,600,00055Investment and Rental Properties
JPR owns urban office buildings and retail facilities for leasing in Tokyo and other regions. The following is the
carrying value, amount of increase (decrease) during current period and estimated fair value of these investment
and rental properties.

End of 18th Fiscal Period (information only) (as of December 31, 2010)
Carrying Value

As of June 30, 2010

￥322,804,866

Amount of
Increase (Decrease)
During Current Period￥8,999,900

As of December 31, 2010

Estimated Fair Value at
End ofCurrent Period￥331,804,767￥315,806,000(Note 1) The carrying value is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) during current period for investment and rental properties, the amount of increase is primarily attributable to additional
acquisition of co-ownership of BYGS Shinjuku Building (3,403,288 thousand yen) and acquisition of Tokyo Tatemono Yokohama Building (7,047,981 thousandyen).
(Note 3) The estimated fair value at end of current period is the appraisal value or survey value as appraised by an outside real estate appraiser.
The income (loss) in the 18th fiscal period for investment and rental properties are as presented in the “Notes to Statements of Income.”

End of 19th Fiscal Period (as of June 30, 2011)
Carrying Value

As of December 31, 2010

￥331,804,767

Amount of
Increase (Decrease)
During Current Period￥(1,268,761)

As of June 30, 2011

￥330,536,005

Estimated Fair Value at
End ofCurrent Period￥313,274,000(Note 1) The carrying value is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) during current period for investment and rental properties, the amount of decrease is primarily attributable to the recordingof depreciation (1,911,469 thousand yen).
(Note 3) The estimated fair value at end of current period is the appraisal value or survey value as appraised by an outside real estate appraiser.
The income (loss) in the 19th fiscal period for investment and rental properties are as presented in the “Notes to Statements of Income and Retained Earnings.”

56

Transactions with Interested Parties
18th Fiscal Period (information only) (July 1, 2010 - December 31, 2010)(Thousands of yen)

Percentage
Transactionof Number ofBusiness
Name ofAmountInvestment
Units
Attribute
Description or Held Among Transactions
Company, etc.
(thousands
Occupation Total Number ofof yen)Investment Units

Mizuho Trust
Banking
Asset& Bankingbusiness andcustodianCo., Ltd.
trust business―

Balance at End
of Period(thousands ofyen)

Account

Short-term
Short-term￥1,000,000 loans payableborrowings￥1,000,000

Long-termloans payable￥3,000,000―
Interest
expenses―￥20,895

Accruedexpenses￥537(Note) Transaction terms are determined based on prevailing market conditions.

19th Fiscal Period (January 1, 2011 - June 30, 2011)(Thousands of yen)

Percentage
Transactionof Number ofBusiness
Name ofAmountInvestment
Units
Attribute
Description or Held Among Transactions
Company, etc.
(thousands
Occupation Total Number ofof yen)Investment Units

Mizuho Trust
Banking
Asset& Bankingbusiness andcustodianCo., Ltd.
trust business

―

―

―

―

―

Interest
expenses￥24,722

Account

Short-termloans payable

Long-termloans payable
Accruedexpenses

Balance at End
of Period(thousands ofyen)￥1,000,000￥3,000,000￥1,728(Note) Transaction terms are determined based on prevailing market conditions.

57

Per Unit Information

18th Fiscal Period(information only)(July 1, 2010 December 31, 2010)

Total net assets per unit
Net income per unit

￥245,458￥5,649(Yen)

19th Fiscal Period(January 1, 2011 June 30, 2011)￥245,387￥5,609Net 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 warrants and convertible bonds are outstanding.
(Note) Net income per unit was calculated based on the following data:(Thousands of yen)

18th Fiscal Period(information only)(July 1, 2010 December 31, 2010)

Net income
Amounts not attributable to ordinary unitholders
Net income attributable to ordinary investment units
Average number of units(January 1, 2011 June 30, 2011)￥4,039,284￥4,010,728￥4,039,284
715,000units￥4,010,728
715,000units

18th Fiscal Period

19th Fiscal Period

Distribution Information(information only)(July 1, 2010 December 31, 2010)

1. Unappropriated retained earnings
2. Distributions(distribution per unit)
4. Retained earnings brought forward

19th Fiscal Period￥4,088,758,450
4,061,200,000(5,680)￥27,558,450(Yen)(January 1, 2011 June 30, 2011)￥4,038,287,297
4,011,865,000(5,611 )￥26,422,297

In accordance with the distribution policy stipulated in Article 30-2 of the Articles of Incorporation, JPR
will be able to distribute only to the extent of the profits and needs to distribute in excess of 90% of JPR's
distributable income as stipulated in Article 67-15 of the Special Taxation Measures Law. Based on thispolicy, JPR decided on a total distribution of 4,011,865,000 yen for the 19th fiscal period (4,061,200,000
yen for the 18th fiscal period). This is the maximum value arrived at when the number of units outstanding(715,000 units) is multiplied by an integer, within the limit of retained earnings for the respective fiscal
period and within the limit of not placing a burden of additional income taxes on our unitholders.
Furthermore, JPR does not make cash distributions in excess of the profit as stipulated in Article 30-4 of the
Articles of Incorporation.

58

Report of Independent Auditors

59

Statements of Cash Flows (Information Only)(For the six-month periods ended December 31, 2010 and June 30, 2011)

Date(Thousands of yen)

18th Fiscal Period

19th Fiscal Period

December 31, 2010)

June 30, 2011)(July 1, 2010 -(January 1, 2011 -Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Increase (decrease) in provision for loss on disaster
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable￥ 4,039,912￥ 4,011,345

1,929,729

1,912,497

21,90820,911―

3,093(6,576)(3,998)1,542,882

1,451,299

24,002(33,467)

Decrease (increase) in prepaid expenses

3,481

37,990

Increase (decrease) in operating accounts payable

76,076102,120

Increase (decrease) in accounts payable-other(23,119)(27,962)

Increase (decrease) in accrued consumption taxes

126,498

32,452

Increase (decrease) in advances received

32,997100,103

Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes (paid) refund

Net cash provided by (used in) operating activities

66,659(29,080)

7,834,452

7,577,304

6,576

3,998

(1,594,218)(1,456,087)

(388)

515

6,246,421

6,125,730(10,696,752)(224,162)(156,846)(160,979)―(5,000)Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets

(520)

―

Repayments of tenant leasehold and security deposits(279,071)(208,068)

Proceeds from tenant leasehold and security deposits

1,305,202

128,448

Repayments of tenant leasehold and security deposits in trust(852,566)(225,754)

Payments for lease and guarantee deposits

Proceeds from tenant leasehold and security deposits in trust

326,225

197,310(10,354,330)(498,206)

Increase in short-term loans payable

10,000,000―

Decrease in short-term loans payable(5,000,000)―

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities

Proceeds from long-term loans payable

9,000,000

17,000,000

Repayment of long-term loans payable(11,358,000)(15,141,000)―(3,000,000)

Redemption of investment corporation bonds

60

Dividends paid

(4,839,107)(4,059,636)

Net cash provided by (used in) financing activities(2,197,107)(5,200,636)

Net changes in cash and cash equivalents(6,305,017)

426,887

Cash and cash equivalents at beginning of period

34,329,413

28,024,396￥ 28,024,396￥ 28,451,284

Cash and cash equivalents at end of period

Significant Accounting Policies
Scope of funds (cash and cash equivalents) in the Statements of Cash Flows
Funds (cash and cash equivalents) in the Statements of Cash Flows include the following :(1) Cash on hand and cash in trust(2) Deposits placed with bank and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash, have insignificant risk of price fluctuationand original maturities of three months or less from the acquisition date.

Notes to Statements of Cash Flows(Thousands of yen)

18th Fiscal Period

Breakdown of cash and cash equivalents
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents(information only)(July 1, 2010 December 31, 2010)
As of December 31, 2010
￥14,090,256
13,934,140￥28,024,396

19th Fiscal Period(January 1, 2011 June 30, 2011)

As of June 30, 2011
￥14,619,039
13,832,244￥28,451,284

61

JPR Investment Policies
A. INVESTMENT POLICIESBasic Policies
JPR's basic investment strategy centers on investment in urban commercial real estate. The Company will
invest primarily in real estate, which comprises superior urban office buildings and retail properties foundin thriving commercial areas, the land on which they are located, as well as in asset-backed securities thathave such real estate as their primary investments. In light of the returns and risks of these investments,
the Company will invest not only in Tokyo but will attempt to diversify into other cities so as to maximize
portfolio return.
The Company will diversify investments in terms of both tenants and properties, taking into account theamount of investment per property, and will thereby seek to achieve stable medium- and long-term growth.
Investment ratio targets are as shown on page 63 under "Investment Stance."
Note: For the definitions of "real estate" and "asset-backed securities that have real estate as their primary investments," please refer to the next section
under " Types of Investment Assets"

Types of Investment Assets
I) "Real estate" refers to the following:i) Real estateii) Real estate leasing rightsiii) Surface rightsiv) Beneficiary interests in the following trusts (including comprehensive trusts in which cash associated with realestate is also entrusted, but excluding the marketable securities defined in the Enforcement Order of the Law
Concerning Investment Trusts and Investment Corporations prior to the revisions pursuant to the Law to Partially
Revise the Securities Exchange Law, enforced on September 30, 2007, and to Article 3 of the Cabinet Order (2007
Cabinet Order No. 233) Concerning Preparations of Related Cabinet Orders Accompanying the Enforcement of the
Law Concerning Preparations of Related Laws Accompanying the Enforcement of the Law to Partially Revise the
Securities Exchange Law (hereinafter referred to as“ former marketable securities.”)a) Real estateb) Surface rights and land leaseholdsv) Beneficiary certificates in monetary trusts (limited to trusts for which the primary purpose is investment in
the assets listed in i) to iii) above; excludes equivalents to former marketable securities)vi) Equity investment based on a contract that specifies that one party will provide funding to be invested in "theassets identified in i) to v) above and the other party will invest these funds in said assets, with theprofits and losses from these investments distributed to investors ("Tokumei Kumiai equity "in Japanese,referred to as "TK equity" hereinafter)II) "Asset-backed securities that have real estate as their primary investments" refer to investment insecurities with over half of their investment backed by real estate, detailed as follows:i)

Preferred securities as defined the Law Concerning Asset Liquidation (Law No. 105 of 1998, including all
subsequent amendments; referred to as the "Asset Liquidation Law" hereinafter)ii) Beneficiary certificates in investment trusts as defined under the Investment Trust Lawiii) Investment securities as defined under the Investment Trust Lawiv) Beneficiary certificates in special-purpose trusts as defined under the Asset Liquidation Law (excludes
beneficiary certificates in trusts listed in I) iv) and v) above)III) The Company may invest in the following designated assets in order to efficiently utilize surplus funds
remaining after the investments listed in I) and II) above:i)

Former marketable securities (as far as stock certificates are concerned, however, this is limited to thoserecognized to be necessary or useful in terms of the basic policies for asset management)ii) Monetary claims (as defined in the former Enforcement Order of the Law Concerning Investment Trusts andInvestment Corporations and include bank deposits, large-scale time deposits and transferable deposits (excluding
former marketable securities) and call loans)iii) Rights resulting from financial futures transactions (as defined in the former Enforcement Order of the Investment
Trust Law)
iv) Rights resulting from financial derivatives transactions (as defined in the former Enforcement Order of theInvestment Trust Law)v) Beneficiary interests in monetary trusts for the purpose of investments in those described in i) to iv) above.

62IV) In addition to the specified assets identified in I) through III) above, the Company may invest in thefollowing assets when considered appropriate or of benefit to the Company in accordance with its basic
investment management policy:i) Trademarks, exclusive licenses and ordinary use rights based on the Trademark Law (Law No. 127 of 1959,
including all subsequent amendments)ii) Rights to use the source of hot springs as set forth in the Hot Spring Law (Law No. 125 of 1948, including all
subsequent amendments) and facilities related to such hot springsiii) Other assets related to the real estate, which are considered appropriate to acquire together with the subject
real estateV) The Company may invest in assets other than the assets under management when considered appropriate
and in line with the organizational operation of trademarks, etc., relating to the Company's name.

Investment StancePortfolio Management Standards
The table below indicates the general targets of the investment ratio by asset type, region, use, etc. that should
serve as the standards for portfolio management.
Type of Investment Asset

Real Estate Asset

Target Ratios

By Asset ClassAs the allocation ratio between office buildings and retail properties,
office buildings will be approximately from 70% to 90% and retailproperties will be approximately from 10% to 30% of the managed
portfolio, based on acquisition price

By Location

As the allocation ratio between Tokyo and other cities, Tokyo will beapproximately from 80% to 90% and other cities will be approximatelyfrom 10% to 20% of the managed portfolio, based on acquisition price

Rental revenues from any individual tenant (total rental revenue when the tenant
occupies multiple compartments and/or properties) will, in principle, be limited to lessthan 10% of total rental revenues
Asset-Backed
Securities, etc.
i)

The total after-investment value of asset-backed securities shall, in principle, be limited
to less than 10% of the net worth of the Company

Period of ownership
The Company will, in principle, hold assets for the medium- and long-term (one to five years and over five
years, respectively) and will not acquire assets for the purpose of short-term trading (less than one year).

ii) Use
JPR's investment targets primarily comprise excellent office buildings (urban commercial facilities) and retailproperties found in thriving commercial areas. (The targets cover other assets including building leaseholdsof the office buildings and retail properties, the leaseholds and surface rights of the land on which they arelocated, and marketable securities and trust beneficiary interests backed by such real estate.)
JPR will determine the allocation ratio of these assets in the portfolio based on full considerations of theeconomic situations, real estate market trends and other factors for respective occasions. As the allocation ratio
between office buildings and retail properties, office buildings will be approximately from 70% to 90% andretail properties will be approximately from 10% to 30% of the managed portfolio, based on acquisition price.
iii) Region
JPR shall work to realize a diversification of the portfolio, not limited to Tokyo but investing in regional cities,
primarily in consideration of the earthquake risks and risks associated with individual market conditions and inorder to generate more cash flow.
As the allocation ratio between Tokyo and other cities, Tokyo will be approximately from 80% to 90% and other
cities will be approximately from 10% to 20% of the managed portfolio, based on acquisition price. However,
JPR does not set a target allocation ratio within any region.

Note: JPR defines “Tokyo” as an investment area that refers to the combination of “Tokyo CBDs” and “Greater Tokyo” as designated below.
Category
Tokyo

Tokyo CBDs
Greater Tokyo

Other Cities

RegionChiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
All other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures
All other areas in Japan63iv) Tenants
Rental revenues from any individual tenant (total rental revenue when the tenant occupies multiple
compartments and/or properties) will, in principle, be limited to less than 10% of total rental revenues. ("Rental
revenues" includes common charges, parking revenues and storage revenues, but does not include additional
usage fees such as after-hours air-conditioning charges.) This ratio may be exceeded, however, if there is any
potential for tenant changes or if warranted by general considerations of leasing conditions and other factors.
Asset-backed securities, etc. primarily investing in real estatev) The total after-investment value of asset-backed securities shall, in principle, be limited to less than 10% of thetotal unitholders’ equity of the Company. Investment in asset-backed securities assumes that there will be an
opportunity to obtain the relevant property, etc., at the end of the asset-backed security period.

vi) Investment policies for development projects
The Company will, in principle, acquire only real estate that generates or is expected to generate stable rental
revenues or similar revenues at the time of acquisition.
i) Development investments
The Company will not engage in development investments (projects in which the Company itself
develops land and builds buildings). However, the Company may place orders by concluding contract
agreements for the construction of a building. However, the Company shall not do so in situations where
it is not appropriate to place orders by concluding contract agreements for the construction of a building(including, but not limited to, the following cases).
When tenants need to vacate the premises for a certain period of time due to large-scale repairs,
renovations, etc., and it causes cash flow to fluctuate to the extent that the entire portfolio of theCompany is severely impacted.
When the acquisition of vacant land and investment to construct a new building severely impacts
the entire portfolio of the Company. Moreover, the measure of impact on the entire portfolio of theCompany shall be determined by giving consideration to the various risks with regard to real estatedevelopment (risks regarding development licenses/permission, interest rate fluctuations during
development, occurrence of great natural disasters, etc.) and the period of time required until cash
flow arises, among others.
ii) Rebuilding projects
The Company may conduct rebuilding projects for properties that it has already acquired, provided thatsufficient potential to secure tenants after rebuilding is determined and the projects are confirmed as
non-development investments.
iii)Properties under development
The Company may conclude sale and purchase agreements for buildings under construction by third
parties prior to their completion if sufficient potential to secure tenants after construction is determined
and if completion/delivery risk has been minimized.
vii) Equipment and fixtures investment policies
The Company will invest in equipment and fixtures in accordance with an efficient upkeep plan created for each
property and designed to maintain and improve the competitiveness of the property from medium- and longterm perspectives. In implementing equipment and fixtures investments, such investments will in principle bemade within the scope of the depreciation expense of the portfolio as a whole. In addition, repairs to common
areas will be implemented quickly by the Company from the perspective of tenant operational policies, andreinforcements will be made quickly for buildings requiring earthquake resistance reinforcements in light of thestatus of tenant operations.
viii) Insurance policiesa) Criteria for selecting underwriting insurance companies:
The Company will select fair underwriting insurance companies through independent brokers.
In principle, the underwriting insurance company for insurance finance shall have a long-term rating of
A3 or better from Moody’s Japan K.K. (referred to as“ Moody’s” hereinafter) or A- or better from Standard& Poor’s Ratings Japan K.K.
b) Earthquake insurance coverage criteria:
The decision to cover earthquake insurance will be made in light of comparisons between thepotential impact of the disaster and property insurance premiums based on the PML for the entire
portfolio. Earthquake insurance may be purchased individually for properties that have high PML.
Note: "PML" refers to the probable maximum loss in the event of an earthquake. PML may be calculated for individual properties
or for the portfolio as a whole. While there is no strict definition of PML (valuation methods will differ depending on the institution
conducting the survey), it is generally found by calculating the probable damage from the largest foreseeable earthquake during
the expected period of use (50 years is the useful lifetime ordinarily assigned to buildings; the largest foreseeable earthquake isa major earthquake of a size seen once every 475 years, having a 10% probability of occurring during any 50 year span). The figure
represents the ratio of projected expenses for restoration of damage to the price of reacquisition.

64ix) Sales policya) The Company will select real estate, asset-backed securities that have real estate as their primary
investments, and other investments in its holdings to be sold based on overall considerations of thecurrent status of the asset to be sold, projections of its future profitability and changes in asset value,
and the asset allocation of the portfolio as a whole.
b)The Company will determine asset values each fiscal term and an investment policy committee will
study whether to sell or hold any property that has declined more than 20% in terms of appraisedvalue compared with book value. In addition, the Company may also consider the sale of otherproperties as it sees fit, as warranted by market conditions and other factors. The following are themain considerations in determining sales:
Market forecast
Development forecast for the surrounding area
Profitability forecast
Estimated amount of future investments
Forecast changes in valuation
Considerations of the portfolio as a whole (diversification by geographical location, tenant andasset class, etc.; impact on dividends, etc.)x) Value-up properties
Value-up properties refer to those properties that exhibit the potential for an increase in profitability and asset
value, and have an immediate income stream on acquisition, along with any of the following characteristics:
1. An occupancy rate of less than 80% at the time of acquisition
2. Significant investment return following effective renovation work
In principle, value-up properties occupy a maximum 15% of the total property portfolio (based on acquisition
price). The additional acquisition of value-up properties is also subject to a total portfolio occupancy rate inexcess of 90%.
Utilizing the know-how of its asset management company, the Company implements the following key strategies
in the management of value-up properties:
1. Reinforce leasing activities with the aim of improving the occupancy rate
2. Carry out effective renovations to enhance market competitiveness3. Implement cost controls by increasing efficiencies in management structure
Value-up properties will be reclassified as core properties, as defined below, when the Investment
Committee judges that the properties have realized enhanced values. The Company will consider thesale of value-up properties as one method to realize asset value appreciation.
xi) Core properties
Core properties refer to office buildings other than value-up properties. Core properties are
positioned as those properties that contribute to the profit stability of the overall portfolio.

Investment Standards
When investing in individual real estate properties, asset-backed securities that havereal estate as their primary investments, or other investments, the Company will, prior to
making the investment, perform a general evaluation that considers the current status, future
profitability, risk, location, building and facilities maintenance and management, deteriorationand obsolescence, earthquake resistance, rights, contracts with current tenants, environment,
topography, as well as other factors.
After acquisition of real estate, asset-backed securities that have real estate as their primary
investments or other investments, the Company will make ongoing and effective investments
in facilities and equipment so as to maintain and improve the value and competitiveness of theasset, and will seek to stabilize and expand profitability by increasing revenues and reducing
costs.
The major specific investment criteria of the Company are as follows:i) Geographical location
Real estate to be invested in will be located in the following areas:a) Major urban areas: CBDs in Tokyo, Yokohama, Kawasaki, Chiba, Saitama, Nagoya, Osaka,
Kyoto and Kobeb) Other government-designated cities: CBDs in Sapporo, Sendai, Hiroshima, Fukuoka,
Kitakyushu and othersc) Other core cities such as prefectural capitals with populations of 300,000 or more65

When investing in retail properties, the Company will identify and determine an appropriate
business area for the property; analyze the business area from a variety of perspectives, including
population, demographic trends, number of households and average income; appropriately measure
the latent buying power and growth potential of the business area; and determine the suitabilityof the tenants and their businesses to the business area. The Company will also study and analyze
competitiveness from a variety of perspectives, including current market competition, plans for the
opening of competitive stores in the vicinity, and future room for development.

ii) Sizea) Office buildings
In principle, the Company will invest in office buildings with total floor space of at least 3,300
square meters and floor space of approximately 330 square meters for each standard floor above
the second story level.
b) Retail properties
In principle, the Company will invest in retail properties of an appropriate size in light of the
future growth potential of their areas, as determined by local characteristics, business area scale
and the standard property size for similar businesses.
iii)Facilities and equipmenta) Office buildings
The Company will evaluate specifications on a case-by-case basis, after giving generalconsideration to local characteristics or potential for post-acquisition property modifications, etc.
and fully confirming the specifications including the shape and dividability of lease floors, ceilingheight, floor fittings, power capacity and air-conditioning systems.
b) Retail properties
The Company will decide on retail properties individually, comparing them against standard
qualifications and judging from overall factors, including the local characteristics of theproperty's area, versatility as a retail property, potential for conversion to other uses, visitor
access, etc.
iv) Earthquake resistance
The Company will, in principle, invest only in buildings that meet new earthquake-resistancestandards (specified under the Buildings Standards Law) or for which earthquake-resistancereinforcement work has been completed (including properties for which earthquakeresistance reinforcement work has not been done, but can be completed after acquisition).
v) Tenantsa) Office buildings
In principle, no single tenant will occupy more than 50% of a property (parent companies
and their subsidiaries are considered as a single tenant). If a tenant occupies more than 50%,
the Company can acquire the property after an evaluation of the tenant's creditworthiness,suitability and substitution potential.
b) Retail properties
Although JPR establishes no limitation on the floor occupancy rate of a single tenant, theCompany will make a general evaluation of the tenant's creditworthiness, profitability of
individual shops, replacability and other factors in selecting tenants. The Company willconduct vigorous property examinations with an aim to pick up properties with strong
capability to attract tenants, while analyzing the subject trade zones and the competitive
situations. After the acquisition, the Company will continue monitoring of tenants.
vi) Rightsa) Co-ownership

The Company will, in principle, seek a co-ownership ratio above 50% in order to assure sufficient
latitude in property management (leasing, improvements, etc.), but may acquire properties
with an ownership ratio below 50% on a case-by-case basis after considering the nature andcreditworthiness of other owners and the characteristics of the property.
The Company shall, in order to assure sufficient latitude in disposal of the property, confirm
whether special contracts or other agreements providing for preferential purchasing rights or
options among the other owners will be executed and whether restrictions will be placed on thetransfer of rights, and if so, the nature of these restrictions.
The Company will attempt to assure the stability of revenues by fully confirming the nature andcreditworthiness of other owners and, where possible, providing for appropriate procedures.
(This may include, but is not limited to, signing contracts prohibiting the division of joint equity
and reaching agreements on the registration of rights and the mutual use of land).

66b) Unit ownership
The Company will, in principle, reserve for itself at least 75% of the voting rights inmeetings attended by unit owners in order to assure sufficient latitude in improvements.
However, it may make individual decisions based on a general evaluation of the nature andcreditworthiness of other unit owners.
The Company shall, in order to assure sufficient latitude in disposal of the property, confirm
whether special contracts or other agreements providing for preferential purchasing rights or
options among the other owners will be executed, and whether restrictions will be placed on
the transfer of rights, and if so, the nature of these restrictions.
The Company will attempt to ensure the stability of revenues by confirming the operationsof the management union (reserves, liability ratios, insurance, etc.) and will take suchindividual measures as are required. (This may include, but is not limited to, increasing
accumulated amounts within the Company itself, or providing for insurance on the joint
areas and registration of land rights separately from the management union.)c) Leaseholds
The Company will, in principle, invest in leaseholds as specified in the old Leasehold Law(Law No. 49 of 1921, including all subsequent amendments) and the Land and Building
Leasing Law (Law No. 90 of 1991, including all subsequent amendments).
The Company will carefully study the nature of the proprietary right holder of land and will
make its decision after fully investigating the impact of the provisions for rent revisions,charges for renewing the leasing contract, charges for approval of rebuilding proposals,
charges for the approval of sales proposals and other factors in concerning profitability.
d) Collateral rights and usufructuary rights
The Company will confirm the existence of mortgages or other collateral rights on the
proposed property at the time of purchase, and the possibility of extinguishing such rights
on closing.
The Company will make its decision after confirming the existence of usufructuary rights(for example, surface rights or easements) set forth by third parties and the impact that suchrights will have on profitability.
vii) Investment amounta) Minimum investment per property
The minimum investment per property (only the purchasing price, exclusive of taxes,
acquisition costs, etc.) will, in principle, be more than 1 billion yen. A property can beacquired for a lesser amount under the following circumstances:
When acquiring part of a property valued in total at over 1 billion yen
When acquiring a property with an appraisal value of more than 1 billion yen, but acquired
after negotiation for a lesser amountIn cases where several properties are being acquired together as a package and theconcerned property is a subordinate assetb) Maximum investment per property
The ceiling on the investment amount per property will be one-third of the total investment
in real estate, asset-backed securities and other investments already held. Generally, however,properties that exceed this ratio can be acquired in cases where this is deemed advisable. The"total investment in real estate, asset-backed securities and other investments already held"refers to the total appraised value of investments up to the previous period, plus the price ofinvestments purchased in the current period (exclusive of taxes, acquisition costs, etc.), plus
the amount to be invested in the new property (exclusive of taxes, acquisition costs, etc.).
c) Restrictions on acquisition priceHowever, provided that the property acquisition does not cause the total property acquisition
fund to fall below the NOI yield criterion for the current period, the above-mentioned
acquisition price’s upper limit of 105% of appraised value can be exceeded in the following
cases:
Properties that, by long-term fixed leasing contracts, are forecast to contribute to stable
cash flow and that are expected to contribute to stably generating dividends in the mediumto long-term
Properties that, in terms of scale, location or general standpoint, are judged to contributeto an increase in total fund quality and that are expected to contribute to stably generating
dividends in the medium- to long-termviii) Selection guidelines concerning real estate acquisition ownership type
The Company acquires real estate under direct ownership or on an entrusted basis, acquiring
beneficiary interests to the property. The decision as to which form of ownership theCompany will take is determined after considering the requirements of the existing owner,
the cost of transferring rights and a number of other factors.

67ix) Policy on forward commitments
When engaging in forward commitments (a contract to purchase at a future date, withsettlement and property delivery to occur on a date one month or later from the contract
date, and other similar contracts; hereinafter the same), careful and sufficient considerations
shall be made, including whether the amount of penalty for contract termination required in
the event of failure to fulfill forward commitments is financially excessive or not, taking into
consideration price volatility risk and other factors. In addition, the property’s real estateappraisal value and business revenue and expense projection trends, etc. shall be monitored
on a regular basis during the period from conclusion of contract to settlement.

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B. FINANCIAL POLICIESFund Management Policies
I ) Leasehold and security deposits
For real estate trust beneficiary interests
In principle, all leasehold and security deposits by tenants will be reserved within the trust account,but the Company shall be able to reduce the reserve amount if warranted by accumulated historical
data, the establishment of commitment lines and other provisions.
For real estate, real estate leaseholds and surface rights
In principle, leasehold and security deposits by tenants will be deposited in full to a commercial banksavings account or time deposit account. However, the Company shall be able to reduce reserves
in order to more effectively utilize these funds if warranted by accumulated historical data, theestablishment of commitment lines and other provisions, while ensuring to maintain security.
II) Cash and bank deposits in the trust account (for real estate in trust)
All cash will be deposited in ordinary savings accounts or time deposit accounts at banks with shortterm debt ratings of at least P-2 from Moody's.
III)Cash and bank deposits in the Company accounts
The provisions of II) above will apply to cash and bank deposits in the Company accounts. However,this will not include savings accounts established for use in the execution of loans by financial
institutions or the payment of interest on loans.
Surplus funds will, in principle, be paid out in the following order of priority; any balances will beadministered as described above:
Reinvestment (refers to a use in purchasing properties or capital expenditures)
Cash distribution to investors (however, no cash distributions will be made to investors inexcess of profits as long as the current tax treatment requires investors to calculate capitalgains/losses each time such investors receive cash distribution exceeding earnings. However,if the board of the Company decides that cash distribution exceeding earnings is required, thecash distribution exceeding earnings is allowed.
Partial repayment of borrowings (however, this will be given the highest priority when therepayment maturity date of the loan agreement arrives, regardless of the priorities listed
above)IV) Derivatives
The Company will use financial futures, options and other derivatives only for the purpose ofhedging interest rate fluctuation risks and other risks generated by the liabilities of the Company.

Issuance of Additional Investment Units
The Company may issue additional investment units in a progressive manner for the purpose ofassuring stable, long-term asset growth as warranted by an accurate assessment of the market and upon
consideration of the dilution effects to existing units (reduction in equity of existing units from the issuingof new units; reduction in the per-unit net asset value or cash distribution of existing units).

Borrowings and Issuance of Corporate Bonds
I) Basic policies
The Company will seek to actively expand the size of assets and maintain stable cash distributions toinvestors by achieving an effective combination of stable long-term fund-raising and flexible shortterm fund-raising.
II) Loan to value (LTV)
Loan to value (LTV) refers to a ratio calculated as shown below and will be used as a measurementof the ratio of liabilities to total assets of the Company.
LTV = (Borrowings + Corporate bonds) / Total assets
The Company will, in principle, maintain LTV at levels of no higher than 55%, but may temporarily
exceed this level due to the acquisition of properties or changes in appraised values.
Note 1: Short-term corporate bonds are included in the corporate bonds.
Note 2: For purposes of this calculation, total assets refers to the amount shown in the assets column of the period-end balance sheet for the most recent periodprior to the calculation of LTV, and is found by adjusting the period-end book value of specified assets held by the Company (specified by Article 2,
Paragraph 1 of the Law Concerning Investment Trusts and Investment Corporations (No. 198 of 1951, including all subsequent amendments)) for thedifference between the period-end book value of the specified assets and its appraised value.

69

C. PROPERTY-RELATED BUSINESS ADMINISTRATION POLICIESProperty-related business refers to property management, general tenant agency, lease manager/
construction manager services and property transfers.
This business is necessary and effective for the achievement of growth for the Company. The Company willadminister this business in accordance with the following policies.

Asset Manager and Property Manager
The growth of the Company requires integrated management by the Asset Manager (AM) and expert
management by the Property Manager (PM), with the PM overseeing the facilities management, leasing
management and construction management of individual properties.
In order to achieve more integrated management, the AM may seek the advice of third-parties regarding
leasing management and construction plans for real estate invested in. The Company initially selectedTokyo Tatemono Co., Ltd. as the party to provide this advice (the Lease Manager/Construction Manager).
The AM will select PMs with high degrees of management expertise, seek to concentrate the PMs for eachgeographical area, rigorously seek to homogenize management across the portfolio and work to maximize
unitholder profits.
The AM will compare the capabilities and merits of a number of companies in its selection of property
managers.
Existing PMs and candidates include: Tokyo Tatemono, a company that supports the AM in its leasing
management activities and refurbishment plans; PMs that operate under existing contracts of properties
acquired by the Company and possess established knowledge of tenants and locations; and other PMs.
Final selection is also based on a variety of factors such as management expertise and efforts to integrate
PMs in line with property proximity.

Commissioned General Tenant Agents
The Company will provide information related to general tenant agency services to its general tenant agentsthrough the property manager. Furthermore, the Company will conclude contracts to commission generaltenant agency services with Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd. and Taisei Corporation(Commissioned General Tenant Agents) and will commission general tenant agency services to them.

Property Transfer Agents
The Company will conclude a contract to commission property transfer services with Tokyo Tatemono.
Tokyo Tatemono will be commissioned to provide property transfer services, as needed, in order to ensure
the smooth execution of property purchases and sales．This will not be limited to the real estate, real estateleasing rights and surface rights, but will include real estate in trust as well. Services will include confirmationof leasing status, confirmation of building and facility maintenance and management, confirmation andestablishment of rights, preparation and confirmation of delivery and other ancillary work.

D. OTHER INVESTMENT POLICIESThe Company will administer its assets in such a way that the ratio of the total price of designated realestate (real estate, real estate leasing rights, surface rights, or real estate in trusts for which real estate
ownership, land leaseholds, or surface rights are the entrusted assets) to the total price of designatedassets owned by the Company is 75% or more.
The Company may modify the above ratios at any time as warranted by factors such as funding trends,
market trends, general economic conditions, real estate market trends and the Company may modify
the above ratios at any time as warranted by such factors as funding trends, market trends, general
economic conditions, real estate market trends and modifications to laws and regulations.
Lending of assets in the portfolioI) The Company may lend (for such purposes as parking space and the installation of billboards) realestate, real estate leasing rights and surface rights from among the assets listed on page 62 in "A.
Investment Policies
Types of Investment Assets" in order to more efficiently administer assets andachieve higher investment performance.
II) If the lending of real estate described in a) above results in the acceptance of leasehold and security
deposits or other similar cash funds, the acceptance of these funds will follow the guidelines listed in"B. Financial Policies
Fund Management Policies I) Leasehold and security deposits," on page 69.
III) The Company shall not lend assets other than real estate, real estate leasing rights and surface rights.

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E. DISTRIBUTION POLICIESThe Company shall make cash distributions to unitholders or eligible registered pledgees listed or registeredon the unitholders list at the end of each fiscal period, based on the following policies.

Distributable Amount

Income available for distribution by the Company (the "distributable amount") equals the amount calculated
by deducting the sum of unitholders’ capital, retained earnings and evaluation/conversion adjustments from thenet assets on the balance sheets.

2 Determining Amount of Distribution

The Company determines the amount of distribution, which must exceed 90% of the Company's distributable
income as stipulated in Article 67:15 of the Special Taxation Measures Law (Law No. 26 of 1957, including all
subsequent amendments). However, the actual amount of distribution may not exceed the distributable amount,as defined above. In addition, the Company can reserve funds for long-term repair reserves, payment
reserves, distribution reserves and similar reserves and allowances that are recognized to be necessary for
maintenance of or increasing the value of assets.

Retained Earnings

Retained earnings not distributed from the distributable amount will be allocated based on the asset
management policy of the Company.

Distribution of Cash Exceeding Earnings

In cases when the distribution is less than 90% of the distributable amount, or when the Company makes
an appropriate decision based on the trend of the economic environment, the real estate market, theleasing market or other conditions, the Company may distribute cash exceeding earnings for the relevant
period, as the sum of the distribution amount set in (2) above and the amount decided by the Company
with the upper limit of the depreciation amount reported at the end of the fiscal period. In such a case, if
the cash distribution does not meet the conditions of special tax treatments for the Company, the amountdecided by the Company for the purpose of meeting the conditions may be distributed in cash.
As long as the current tax treatment requires investors to calculate capital gains/losses each time suchinvestors receive cash distributions exceeding earnings, the Company will not conduct cash distribution
exceeding earnings to investors.
However, if the board of the Company decides that cash distributions exceeding earnings is required
to satisfy the "qualification test of distribution deductible", the distribution exceeding earnings is allowed
following the above distribution policy.

Method of Distribution

Distributions are paid in cash based on the number of investment units held to unitholders who arelisted on the final unitholders' list at the end of each fiscal period, or to eligible registered pledgees, within
three months, in principle, from the end of each fiscal period.

Extinctive Prescription

The Company will be released from its payment obligation of distributions after a lapse of three years
from the date of starting payment. No interest is payable in respect to unpaid distributions in arrears.

71Investor Information
Address of Japan Prime Realty Investment Corporation (JPR)
9-9 Yaesu 1-chome, Chuo-ku, Tokyo 103-0028, Japan

Date of Establishment
September 14, 2001

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders
More than once every two years

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

AgentsMizuho Trust & Banking Co., Ltd.
(All branches nationwide)
Mizuho Investors Securities Co., Ltd.
(Head office and all branches nationwide)

Web Site

http://www.jpr -reit.co.jp/jpr_e/index.html

Contact (Tokyo Realty Investment Management, Inc.)
Tel: +81-3-3231-1051
Fax: +81-3-3274-7775

Annual Schedule (Provisional)
Release of Business Report OctoberDecemberFiscal period ends

Cash distributions September

AugustAnnouncement of the fiscal
period results

Appropriate disclosure
on web site

June

Fiscal period ends

April

March

February

Announcement of
the fiscal period results

Cash distributions

Release of Business Report

This document contains a translation of selected information described in the Financial Statements and Performance Information Report
prepared pursuant to the Investment Trust Law of Japan and the Financial Instruments and Exchange Law, for the period from January
1, 2011 to June 30, 2011 of Japan Prime Realty Investment Corporation (JPR). This English language document was prepared solely
for the convenience of and reference by non-Japanese investors and is not intended to constitute a disclosure document. The Japanese
language Financial Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely identicalconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if
there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English documents,
the original Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.,
nor any of their respective directors, officers, employees, partners, unitholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of English translations or the selection of portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than contained in this document
in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon
as having been authorized by JPR, Tokyo Realty Investment Management, Inc., or any of their respective directors, officers, employees,
partners, unitholders, agents or affiliates. The financial statements of JPR have been prepared in accordance with generally accepted
accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions. Many provisions of this document contain information that constitute forward-looking statements. These
forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may differ
materially from those in the forward-looking statements as a result of various factors.

72

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

Nineteenth Fiscal Period Business Report

January 1, 2011 - June 30, 2011
Japan Prime Realty Investment Corporation