Forty-Second Fiscal Period Semi-Annual Report
July 1, 2022 − December 31, 2022

Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation

Message to Our Unitholders
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere gratitude forthe continued loyal patronage you have extended to us.
Having settled the 42nd fiscal period (July 1, 2022 – December 31, 2022), we would like to report on theperformance results.
Although the outlook remains uncertain due to the unstable international affairs and the impact ofprice hike, etc., the vacancy rate in central Tokyo remains generally flat partly due to a certain degree ofrecovery in demand in the office property leasing market.
Under such circumstances, JPR continues to conduct stable operation, and the average occupancy rate
for the 42nd fiscal period was 97.0% (+0.4% compared with the forecast). Distribution per unit remained
at a high level of 7,750 yen, and we plan to secure a certain level in the next fiscal period onwards bystrategically utilizing gain on sale and internal reserves.
Going forward, while continuously paying close attention to the trend of office market and financial
environment, we will flexibly respond to changes in the business environment and endeavor achieving
appropriate asset management to grasp new opportunities for growth.
We ask you, our unitholders, to extend us continued support of our operations.

Portfolio Management Status
Item

41st Period
ended
Jun. 2022
Results

42nd Period
Changeended
Dec. 2022
Rate of
ChangeResultschangeOperating revenue

18,357

18,739381

2.1%

Profit from leasing business

9,072

9,193

120

1.3%

Operating income

9,343

9,273

-70

-0.8%

Ordinary income

8,607

8,469

-138

-1.6%

(million yen)(million yen)(million yen)(million yen)

Net income

8,607

8,469

-138

-1.6%

Distribution per unit

7,800

7,750

-50

-0.6%

(million yen)

(yen)

1

Operating revenue includes gain on sale of properties.

While profit from leasing business was impacted by
the rise in utilities expenses, it increased due to anincrease in rents and common charges resulting fromthe elimination of free rent, etc., and an increase inother revenues.

Operating income decreased partly due to therecording of the difference between gain on sale ofland and loss on sale of building for Gotanda First
Bldg. after the reduction entry following the exchangetransaction with Shinjuku Center Bldg.

Distribution per unit came to 7,750 yen (down 50 yen
from the previous fiscal period), the same amount as
the initial forecast. Part of the gain on sale that wasrecorded in the 42nd fiscal period has been internallyreserved for the purpose of stable management andcash distributions in the future.

Japan Prime Realty Investment Corporation

42nd Fiscal Period Topics
In an attempt to further improve the quality of its portfolio, JPR conducted asset replacement with
Tokyo Tatemono, its main sponsor.
Asset replacement
Newly acquired assets (total acquisition price: 9.09 billion yen)

Asset sold

Assetreplacement

Shinjuku Center Bldg.
(Additional ownership)

Osaka Dojima Bldg.

FUNDES Tenjin Nishidori

Gotanda First Bldg.

[ Effect of asset replacement ]►Asset size

+6.17 billion yen►

NOI (Note 1)+184 million yen/year►

Building age (Note 2)-10.2 years(Note 1) “NOI” refers to the net operating income stated in the real estate appraisal report.
(Note 2) The figure is obtained by deducting the building age of the property sold from the weighted average building age based on the acquisition price of the properties acquired
as of December 31, 2022.

Shinjuku Center Building (additional ownership: equivalent to 1.5% of the entire building)
The property is a highly visible building with 54 floors above ground and located in an area with a concentrationof high-rise buildings on the west side of Shinjuku Station. It is conveniently located as it is directly connectedby an underground passage to JR Shinjuku Station. It stands on a particularly prime site in an area featuring a
concentration of high-rise buildings on the west side of Shinjuku Station and thus is very competitive.
Acquisition date

Acquisition priceAppraisal value

Completion date

Total leasable floor space

NOI yield

Yield after depreciation

Occupancy rate (as of acquisition date)Seller2

December 22, 2022
3,320 million yen
3,320 million yen
October 1979
1,551.45 m2
3.3%
2.7%
94.8%
Tokyo Tatemono

Japan Prime Realty Investment Corporation

Osaka Dojima Bldg.
The property has good access to public transportation as it is a five-minute walk from Nishiumeda Station on
the Osaka Metro Yotsubashi Line and a nine-minute walk from JR Osaka Station. In the nearby area, Tokyo
Tatemono, the main sponsor, is undertaking the large-scale redevelopment “ONE DOJIMA PROJECT,” andfurther development is expected.

Acquisition date

Acquisition priceAppraisal value

Completion date

Total leasable floor space

NOI yield

Yield after depreciation

Occupancy rate (as of acquisition date)SellerJanuary 11, 2023
2,460 million yen
2,700 million yen
July 1996
3,074.30 m2
4.9%
4.3%
83.6%
Tokyo Tatemono

FUNDES Tenjin Nishidori
The property is a compact urban retail facility developed by Tokyo Tatemono, the main sponsor, and wascompleted in March 2022. It faces Tenjin Nishidori street in Fukuoka Tenjin, which has the largest concentrationof retail facilities in Kyushu, and is highly competitive.

Acquisition date

Acquisition priceAppraisal value

Completion date

Total leasable floor space

NOI yield

Yield after depreciation

Occupancy rate (as of acquisition date)Seller3

January 11, 2023
3,310 million yen
3,590 million yen
March 2022
1,054.30 m2
3.8%
3.3%
68.8%
Tokyo Tatemono

Japan Prime Realty Investment Corporation

Initiatives on Sustainability
Materialities
JPR and TRIM, the asset management company, have reviewed the materialities due to changes in the external
environment, etc.
Materialities

PolicyAction on climate change

Improving tenantsatisfaction with safety,
security and comfort

Creating a rewarding
workplace environment

Strengthening corporate
governance

SDGs· Promote the acquisition of environmental certifications· Reduce GHG emissions· Efficient use of water resources· Strengthen management of climate change risks· Work with tenants to address climate change· Improve satisfaction by providing tangible and intangible services to ensure
safety, security and comfort· Strength human resources through training and self-development support· Build a highly efficient operational structure· Maintain and improve physical and mental health· Create a rewarding workplace environment· Promote diversity and inclusion· Implement transparent management through active IR· Improve the comprehensive strength of the sustainability promotion system· Respect for human rights· Ensure a strong corporate governance system· Reinforce the risk management structure

Recognition by External Bodies
GRESB Real Estate Assessment

CDP Climate Change Program

5 Stars

Received “5 Stars” for four
consecutive years.

MSCI ESG Rating (Note)A-

Obtained a higher rank of “A-,”
which is the leadership level.

Received “A” rating for threeconsecutive years.

(Note) JPR's use of data produced by MSCI ESG Research LLC or its affiliates ("MSCI") and JPR's use of MSCI logos, trademarks, service marks or index names do not constitute asponsorship, guarantee, recommendation, or promotion of JPR by MSCI. MSCI's services and data are the property of MSCI or the entity providing such information and areprovided "AS IS" without warranty of any kind. MSCI's names and logos are trademarks or service marks of MSCI.

4

Japan Prime Realty Investment Corporation

Initiatives on Environmental Friendliness■ GHG (Greenhouse Gas) Emission Reduction Plan
JPR formulated a new GHG emission reduction plan to achieve net zero emissions by 2050. We filed the planwith the SBTi in November 2022, and set a 46% reduction of total GHG emissions (compared with the 2019 level)as an interim target to be achieved by 2030. Going forward, we aim to achieve net zero emissions by 2050 byimplementing various measures.
Increased emissions due toexpansion in asset size
+3% per year

Reductions in categories 1, 2 and 5 (Note)

Long-term
target2019 (base year):
Reduction as a result of introduction ofrenewable energy andpurchase of non-fossil fuel certificates

Medium-termtarget-46.2 %

Reduction as a result of energy-saving
renovations, etc.
Achieving reductions by lowering
emission coefficients

Emissions in Scope 1, 2, and 3

Net zero GHG emissions

74,931t

Results

2021

2030

2040

2050

(Note) Category 1: Emissions through supply chains, Category 2: Emissions from capital goods, Category 5: Emissions from waste disposal■ Status of Acquisition of Environmental Certifications
JPR achieved its previous target of “environmental certification coverage ratio of 80% or higher” in the 42nd
fiscal period, and set a new target of “environmental certification coverage ratio of 80% or higher, with 4-star/
A rating or higher.” Going forward, JPR will continue to seek qualitative improvement of environmental
performances.
（%）

Previous targets

100

Assessment in CASBEE for Real Estate

New targets

88.7%

Target for 2030

80

71.4%

74.3%

77.6%

65.5%

70.5%

53.4% 54.4%

40

34.0%

40.2%

49.3%

34.0%
27.3% 28.3%

20

17 properties
1 property★★★★★

1 property★★★★

4 properties★★★

8 properties（ ZEB Oriented ）★★★★★

1 property★★★

1 property★★

1 property

BELS Certification

13.4%
0

19 properties★★★★

DBJ Green Building Certification

59.6%
45.9%

★★★★★

A

B+ ★★★

60.1%
60

S

Dec. 2018 Jun. 2019 Dec. 2019 Jun. 2020 Dec. 2020 Jun. 2021 Dec. 2021 Jun. 2022 Dec. 2022

5

(Period)Japan Prime Realty Investment Corporation

Initiatives on Behalf of the Society■ Initiatives for Employees at the Asset Manager (TRIM)
We believe that employees are important stakeholders and the improvement of their satisfaction is important forthe sustainable growth of JPR and TRIM. TRIM conducts an employee satisfaction survey every year, and theresults are reported to the management, and used for feedback to employees and improvement of the internal
environment.
Cases of improvements►

Introduction of advisor system
In order to help newly hired employees acquire the skills necessary for work and maintain and improve theirmotivation, senior employees provide advice on how to proceed with work. TRIM also covers the expenses forlunch and social gatherings, and strives to create a comfortable working environment.

►

Establishment of a new café space
Established a café space to facilitate communication among
officers and employees.

►

Enhancement of training system
Introduced a new training system and increased the amountof training expenses paid by the company in response to therequest for expanding support for skill development.

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

■ Decision-Making Based on Stringent Processes· At TRIM, decisions on matters such as property acquisitions andoperations are made based on stringent examination from a wide
perspective at meetings of the various committees.
· In particular, with regard to material transactions conducted with thesponsors, etc., their adequacy and rationality are screened and verified by
the Compliance Committee and require the unanimous approval of all
members, in principle.
· An outside attorney has been appointed as a special member of theCompliance Committee.

■ Invited an External Special Member to theInvestment Committee

Decision-Making Process (for property acquisitions)
Proposal, planning

Responsible Department

Review, screening

Compliance Subcommittee

Confirmation of results ofdue diligence/verificationof solutions andimprovement measures

Due Diligence Subcommittee

Transactions otherthan transactions withrelated parties

Transactions withrelated parties
Deliberation

Compliance Committee

Approval JPRʼs Board of Directors
Deliberation(decision on acquisition)
ReportingConclude agreement

Investment Committee
TRIMʼs Board of Directors
Property acquisition(Note) In addition to the processes indicated in the above chart, there may be

We invited a special member qualified as a real estateappraiser from outside the company to strengthen thegovernance system.

cases where approval by the Board of Directors and consent by JPR are
required as set forth in the Act on Investment Trusts and Investment
Corporations.
(Note) The chart shows a general decision-making mechanism, and dependingon the nature of the proposed acquisition, the order of the procedure
may be partially changed or some meetings, etc. may not be held.

6

Asset Management ReportJapan Prime Realty Investment Corporation

1.1.Overview
AssetManagement
Management
Overview ofof Asset
TrendsininOperating
Operating Results
Results andData(1)(1)Trends
andOther
OtherManagement
Management
Data

2.

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Financial Position

Operating Performance

Fiscal Period

Unit

38th Fiscal
Period(Jul. 1, 2020 Dec. 31, 2020)
17,12939th Fiscal
Period(Jan. 1, 2021 Jun. 30, 2021)
17,30540th Fiscal
Period(Jul. 1, 2021 Dec. 31, 2021)
18,253

41st Fiscal
Period(Jan. 1, 2022 Jun. 30, 2022)
18,35742nd Fiscal
Period(Jul. 1, 2022 Dec. 31, 2022)
18,739Operating Revenue
Rent revenue – real estate

Million yen

Gain on sale of real estate

Million yen

16,714414

16,521
783

16,382
1,870

17,0191,338

17,392
1,347

Million yen

8,596

8,515

9,626

9,014

9,466

Million yen

7,611

7,499

7,731

7,946

8,199

Million yen

8,533

8,789

8,626

9,343

9,273

Million yen

7,840
7,839

8,121
8,120

7,893
7,892

8,607
8,607

8,469
8,469

%

484,573(+2.4)

484,323(-0.1)

495,615(+2.3)

507,005(+2.3)

507,655(+0.1)

Million yen

196,520

196,500

206,900

202,900

202,900

Million yen

256,399

257,093257,649

272,912273,603(+0.2)(+0.3)(+0.2)(+5.9)(+0.3)

Million yen

247,860

247,860

247,860

261,751

261,751

Million yen

7,426

7,337

7,234

7,777

7,728

%

94.7

90.3

91.6

90.3

91.2

Units
Yen

958,250
267,570958,250
268,295

958,250
268,875

997,178
273,684

997,178
274,378

Yen

7,750

7,657

7,550

7,800

7,750

Yen

7,750

7,657

7,550

7,800

7,750

Yen

–

–

–

–

–

%

1.6

1.7

1.6

1.7

1.7

%

3.2

3.4

3.2

3.5

3.3

%

3.1

3.2

3.1

3.2

3.1

%

6.1

6.4

6.1

6.5

6.1

255,838

256,399

257,093257,649

272,912

%

52.9

53.1

52.0

53.8

53.9

pt

(-1.2)(+0.2)(-1.1)(+1.8)(+0.1)

%

40.6

40.6

41.7

40.0

40.0

Times

14.6

14.6

13.8

14.1

13.8

Million yen

10,208

10,132

9,708

10,026

10,120Million yen

697
11,188694
11,121

701
10,779710
11,118731
11,248

%

4.7

4.8

4.3

4.5

4.5

Million yen

9,534

9,751

9,177

9,737

9,745

%

4.0

4.2

3.7

4.0

3.9

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

Million yen

Million yen
Million yen%

Million yen

Million yen

66

65

66

67

65

857

804

1,134

1,171

1,180

m2

501,162.78

496,876.92

500,628.05

502,889.81

494,503.72

%

99.3

98.1

97.3

97.5

97.6

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

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

71

Asset Management ReportJapan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (38th fiscal period: ¥468.54 billion, 39th fiscal period: ¥467.52 billion, 40th fiscal period: ¥494.23 billion,
41st fiscal period: ¥496.18 billion and 42nd fiscal period: ¥495.60 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 38th fiscal period: 184 days, 39th fiscal period: 181 days,
40th fiscal period: 184 days, 41st fiscal period: 181 days and 42nd fiscal period: 184 days.
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

42nd
FiscalPeriod
PeriodAsset
Asset Management
Management(2)(2)
42nd
Fiscal3.

1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 997,178 units as of the end of the 42nd fiscal period (December 31, 2022). JPR has assigned the asset management of its
portfolio to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize
unitholder value by efficiently managing the portfolio primarily comprising office properties and retail properties.
2) Management Environment
During the 42nd fiscal period, the Japanese economy showed a pickup as progress was made to a certain degree in addressing
COVID-19 while at the same time promoting socio-economic activities. On the demand side, a strong note was observed mainly
in consumer spending and capital investment. Meanwhile, in terms of supply, partial stagnancy in production activities in China
caused disruptions in supply chains, which affected Japan as production stagnated in some areas. Corporate earnings demonstrated
recovery both in manufacturing industries and the non-manufacturing sector. However, price indexes in Japan have shown a yearon-year increase against the backdrop of rising commodity prices due to exchange rate fluctuations, causing concerns about how
the economy and corporate earnings will be impacted.
The Office Property Leasing Market
In the office property leasing market, the vacancy rate in Central Tokyo had been rising until recently but has started to level off,
partly due to socio-economic activities normalizing gradually, and the decrease in average rent has been decelerating. Similar trends
are observed in Greater Tokyo and other cities.
The Retail Property Leasing Market
At urban retail properties which JPR targets for investment, sales recovery is underway with an increase in the number of customers
visiting stores, given the socio-economic activities normalizing gradually.
The For-Sale Real Estate Market
In the for-sale real estate market, active transactions continued to take place in the 42nd fiscal period against the backdrop of weaker
yen and low interest rates, etc. Close attention must be paid, however, on how the foreign exchange market and interest rate trends
may affect the market conditions. For office properties that are major targets of JPR for investment, blue-chip properties are in
short supply while investors both in and outside Japan still show a strong appetite to acquire them. Thus, with low-yield transactions
continuing to prevail, the acquisition environment remains harsh. Accordingly, investors continue to look for ways to effectively
acquire properties, such as by diversifying the target assets for investment and conducting asset replacement.
As for urban retail properties and hotels for which investors have shown a cautious attitude due to the impact of COVID-19,
transactions with an eye to the post-pandemic era are visibly taking place.
3) Portfolio Management Status
Acquisition of New Properties and Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus office properties in regional cities andretail properties, etc., with the primary aim of improving the quality of the portfolio and achieving stable growth of earnings while
giving attention to balancing the diversification of the portfolio, both in terms of location and asset type.
During the 42nd fiscal period, JPR conducted an exchange transaction by selling Gotanda First Bldg. (sale price: 4,270 million
yen) and acquiring Shinjuku Center Bldg. (additional acquisition of 7% co-ownership interest) (acquisition price: 3,320 million
yen) in December 2022. Moreover, in the same month, JPR conducted the third part of the sale of JPR Umeda Loft Bldg. (30% coownership, sale price of the relevant ownership interest: 5,250 million yen). As a result of these transactions, the balance of JPR’s
assets under management totaled 65 properties, or 488.7 billion yen on an acquisition price basis as of the end of December 2022,with the total leasable floor space standing at 494,503 m2 and the number of tenants at 1,180.

28

Asset Management ReportJapan Prime Realty Investment Corporation

Operational Management of Portfolio
In the office property leasing market in the 42nd fiscal period, the upward trend in the vacancy rate and the downward trend in rent
levels appeared to take a temporary pause, given the impact of COVID-19 being tamed. Nevertheless, the situation demands thatclose attention be continuously paid. Under such circumstances, JPR endeavored to attract new tenants through strategic leasing
activities and enhance the satisfaction of existing tenants by maintaining close cooperation with property management companies
and brokers, with an aim to secure stable earnings across the entire portfolio as well as its occupancy rate. As a result of these
efforts, the occupancy rate at the end of the 42nd fiscal period was kept at a high level, as it rose 0.1 points period-on-period to
97.6%.
In terms of property management, JPR continued to proactively implement value enhancement works based on tenant needs, on
the ground of its brand concept A/3S (Amenity/Service, Safety and Save Energy) that has been established with an aim to create
spaces where the workers feel satisfaction. As an endeavor to reduce CO2 emissions, JPR conducted renewal of elevators andescalators and replacement of lighting equipment with LED lamps, which are expected to be effective for the endeavor, at its
multiple properties.
Moreover, as its initiatives on environmental issues, JPR has continuously obtained environmental certifications. As of December
31, 2022, JPR has acquired DBJ Green Building Certification*1 for 13 properties in total. JPR has also obtained CASBEE for
Building Certification*2 for 37 properties in total (including 8 newly certified properties), and BELS*3 certification for 3 properties(including one newly certified property (ZEB*4 certification type: ZEB Oriented*5)). On top of these certifications JPR acquired,its endeavors on environmental issues were so acknowledged that it was designated as “Green Star” in the GRESB*6 Real Estate
Assessment for 2022, marking the ninth consecutive year of recognition with the highest ranking in the survey. JPR has also been
granted the highest rank of “5 Stars” in the rating, which makes relative assessment based on total scores, for four consecutive
years.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on thescoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate
disasters and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental
performance of buildings. Efforts to develop and popularize the system in Japan are being carried out under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.
*3 BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performance labeling system created for the purpose that a third-party
organization accurately conducts the evaluation and indication of energy efficiency performance of non-residential buildings in accordance with the Assessment
Guidelines on Energy Efficiency Performance of Non-residential Buildings (2013) established by the Ministry of Land, Infrastructure, Transport and Tourism.
*4 ZEB is an abbreviation of Net Zero Energy Building, and refers to buildings that aim to balance out the annual primary energy they consume to zero, while realizing
a comfortable indoor environment.
*5 ZEB Oriented refers to special use buildings with a total floor space of 10,000 m2 or more that have adopted measures to achieve energy conservation and reduced
primary energy consumption by at least 40% from the standards set in the Act on the Improvement of Energy Consumption Performance of Buildings.
*6 GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) awareness of real estate companies and funds, as well as
the name of the organization which runs the assessment system. It was founded in 2009 primarily by major European pension fund groups. Of the survey subjects,
GRESB Real Estate Assessment covers real estate companies and funds that are mainly engaged in managing existing properties.

Fund Procurement
JPR focuses its endeavors on debt financing with an emphasis placed on lengthening debt maturity and diversifying repayment
dates, in an effort to make its financial base more solid and stronger. JPR borrowed 8.0 billion yen in the 42nd fiscal period to fundthe refinancing of interest-bearing debts it repaid during the same fiscal period. This led to the average maturity of and the averageinterest on the new interest-bearing debts at 6.3 years and 0.54%, respectively, in contrast to 4.9 years and 0.41% for the relevantinterest-bearing debts before refinancing.
As of the end of the 42nd fiscal period, the balance of interest-bearing debts totaled 202.9 billion yen, with a balance of borrowingsof 165.0 billion yen and a balance of investment corporation bonds of 37.9 billion yen. The ratio of interest-bearing debt to total
assets (LTV) (Note 1) was 40.0%, long-term and fixed interest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3)
was 0.76% and average maturity (Note 4) was 4.7 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial institutions.
The following represents the issuer ratings for JPR as of the end of the 42nd fiscal period.
Details of Corporate Credit Ratings as of December 31, 2022
Credit Rating Agency
Japan Credit Rating Agency, Ltd. (JCR)
Rating and Investment Information, Inc. (R&I)

Corporate Credit Rating (Outlook)
AA (Stable)AA- (Stable)(Note 1) Ratio of interest-bearing debts to total assets (LTV): (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 42nd fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

93Asset Management ReportJapan Prime Realty Investment Corporation

AdditionalOfferings,
Offerings, Etc.
Etc.
(3)(3)
Additional

4.

The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date

Number of Units
Outstanding

Event

March 3, 2020

Additional public offering

Variation
35,250January 18, 2022
February 16, 2022

Additional public offering
Third-party allotment

38,100828

Unitholders' Capital(millions of yen)

Remarks

Balance958,250

Variation
16,207

Balance
247,860(Note 1)

996,350
997,178

13,594295

261,455
261,751(Note 2)
(Note 3)(Note 1) New investment units were issued through a public offering at 474,810 yen per unit (underwriting price of 459,790 yen per unit) to fund acquisition of new specified
assets and partly repay debts.
(Note 2) New investment units were issued through a public offering at 368,480 yen per unit (underwriting price of 356,824 yen per unit) to fund acquisition of new specified
assets and partly repay debt.
(Note 3) New investment units were issued through a third-party allotment at 356,824 yen per unit to partly repay debt.

Cash
Distributions(4)(4)Cash
Distributions

5.

With regard to the cash distributions of the 42nd fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 41st fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. In addition,
for the 42nd fiscal period, JPR decided to reverse part of reserve for reduction entry (73 million yen) reserved by applying the Special
Measures in Case Land or Other Property is Acquired in Advance in 2009 or 2010 (Article 66-2 of the Act on Special Measures
Concerning Taxation), and internally reserve 815 million yen as reserve for reduction entry from the unappropriated retained earnings,
pursuant to the Special Provisions for Taxation in Cases of Repurchase of Specified Assets (Article 65-7 of the Act on Special Measures
Concerning Taxation). As a result, the cash distribution per unit came to 7,750 yen for the 42nd fiscal period.
(Thousands of yen unless otherwise indicated)
38th Fiscal
Period(Jul. 1, 2020 Dec. 31, 2020)

39th Fiscal
Period(Jan. 1, 2021 –Jun. 30, 2021)

40th Fiscal
Period(Jul. 1, 2021 Dec. 31, 2021)

41st Fiscal
Period(Jan. 1, 2022 –Jun. 30, 2022)

42nd Fiscal
Period(Jul. 1, 2022 Dec. 31, 2022)

7,849,585

8,129,659

7,901,374

8,614,933

8,476,171

423,148

792,338

666,586

836,945821,989

Total Cash Distributions

7,426,437

7,337,320

7,234,787

7,777,988

7,728,129(Cash Distribution per Unit)(7,750 yen)

(7,657 yen)

(7,550 yen)

(7,800 yen)

(7,750 yen)

Fiscal Period

Unappropriated Retained Earnings at End of Period

BreakdownInternal Reserves

Total Cash Distributions from Net Income

7,426,437

7,337,320

7,234,787

7,777,988

7,728,129(Cash distribution from net income per unit)(7,750 yen)

(7,657 yen)

(7,550 yen)

(7,800 yen)

(7,750 yen)

–

–

–

–

–

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

–

–

–

–

–

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

–

–

–

–

–

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

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)4

10

Asset Management ReportJapan Prime Realty Investment Corporation

FutureManagement
ManagementPolicies
Policies and(5)(5)Future
and Critical
CriticalIssues
Issues6.

Looking ahead, it is anticipated that more progress will be made in addressing COVID-19 while at the same time promoting socioeconomic activities. In particular, due to a rise in demand from inbound foreign tourists and consumer spending as well as improvementsin the supply chains, etc., the Japanese economy is expected to continue showing a pickup. However, attention should be paid to theimpacts of fluctuations in the financial and capital markets associated with rising interest rates in and outside Japan. In addition, JPR
will continue to pay close attention to the impact of the COVID-19 infections in Japan and abroad.
The office property leasing market is anticipated to hit the bottom in a gradually increasing manner, but close attention must be paid to
the impact of the increased supply of office buildings in Central Tokyo anticipated for 2023 and 2025. In addition, corporate earnings
trends in 2023 and thereafter must also be taken into consideration. Under these circumstances, JPR is resolved to continue its endeavors
to enhance the competitiveness of its owned properties, as it has focused on improving tenant satisfaction through proactive
implementation of value enhancement works and provision of elaborate management services.
In the for-sale real estate market, it has become even more important to discern the growth potential in earnings of respective properties,
while continuously taking into account the impact of the changes in the Japanese economy on the leasing market. In consideration of
the current situation in which the low-yield environment continues to stay, it is necessary to firmly keep the attitude of vigorously
selective investment for implementing real estate investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on office properties in the Tokyo area, with an aim to improve the quality of its
portfolio and enhance its growth potential and stability over the long term. In the for-sale office property market, the purchase cap
rate and expected cap rate levels still stay low, with properties remaining in short supply. Although close attention must be paid to
the trends in the leasing market going forward, JPR will fully investigate the stability and growth potential of candidate properties
when acquiring them. As for retail properties, etc., JPR will work to invest in strictly selected blue-chip properties that can maintainstable revenues at a certain level in order to complement the stability of earnings of the entire portfolio. In doing so, JPR will haveto be more prudent in investigating, paying close attention to the sales trends, etc. of such properties under the influence of COVID19. JPR will continue its endeavors to acquire new properties under reasonable terms by negotiating prices based on detailed market
studies and property due diligence.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of the Asset Manager (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation and Meiji Yasuda Life
Insurance Company), accurately following market trends and carefully researching investment value, including the future potentialof candidate properties.
Furthermore, JPR will also investigate asset replacement by taking into consideration the timing of implementation, in order toimprove the quality of its portfolio and enhance its growth potential over the long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over the medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions in consideration of the current leasing market situations and promote rapid decision making- Conduct strategic value enhancement works with the intent to improve property earnings and increase tenant satisfaction- Reinforce responses to business continuity plans and environmental friendliness that command high social demand3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will control its
LTV in a conservative manner. In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in aneffort to diversify the repayment dates of interest-bearing debts and reduce the repayment amount for each fiscal period, with aneye on reducing refinancing risks that may arise in accordance with future changes in the financial environment. Moreover, JPR
intends to work on fund procurement through issuance of investment corporation bonds as it aims to diversify fund procurementmeans and sources.

115

Asset Management ReportJapan Prime Realty Investment Corporation

InformationDisclosure
Disclosure(6)(6)
Information

7.

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

SignificantSubsequent
Subsequent Events(7)(7)
Significant
Events8.

Property Sale
JPR concluded a sale agreement regarding the following property on February 17, 2023.
< JPR Crest Takebashi Bldg. >Asset type:
Sale price:
Delivery date:
Buyer:
Impact on operating results:

Beneficiary interest
4,169 million yen
April 12, 2023 (scheduled)
Yasuda Real Estate Co., Ltd.
JPR plans to record approximately 881 million yen in gain on sale of real estate as operating
revenue for the 43rd fiscal period (January 1, 2023 – June 30, 2023).

<Reference Information>
Property Acquisition
After the settlement date of the 42nd fiscal period, JPR acquired the following properties.
< Osaka Dojima Bldg. >Property overview
Location:
Type of ownership:

3-5 Dojima 2-chome, Kita-ku, Osaka-shi, Osaka (residential address)
Land: Ownership (co-ownership: approx. 95.4% co-ownership interest)
Building: Sectional ownership
Site area:
938.01 m2 (equivalent to co-ownership interest: 894.91 m2)
Total floor space:
4,977.52 m2 (exclusive area: 2,947.16 m2)
Structure/floors:
S, RC with flat roof, B1/7F
Completed:
July 1996
Number of tenants:
8
Total leasable floor space:
3,074.30 m2
Total leased floor space:
2,571.56 m2
Occupancy rate:
83.6%(Note) Number of tenants, total leasable floor space, total leased floor space and occupancy rate indicate the figures as of theacquisition date.

Transaction terms and conditions
Purchase price:
2,460 million yen
Asset type:
Real estate
Contract date
December 21, 2022
Acquisition date:
January 11, 2023
< FUNDES Tenjin Nishidori >Property overview
Location:
Type of ownership:

3-21 Tenjin 2-chome, Chuo-ku, Fukuoka-shi, Fukuoka (residential address)
Land: Ownership
Building: Ownership
Site area:
219.26 m2
Total floor space:
1,135.67 m2
Structure/floors:
S with flat roof, 8F
Completed:
March 2022
Number of tenants:
5
Total leasable floor space:
1,054.30 m2
Total leased floor space:724.84 m2
Occupancy rate:
68.8%(Note) Number of tenants, total leasable floor space, total leased floor space and occupancy rate indicate the figures as of theacquisition date.

612

Asset Management ReportJapan Prime Realty Investment Corporation

Transaction terms and conditions
Purchase price:
3,310 million yen
Asset type:
Real estate
Contract date
December 21, 2022
Acquisition date:
January 11, 2023
On February 17, 2023, JPR concluded an agreement regarding acquisition of the following property.
< Ochanomizu Sola City >Property overview
Location:
Type of ownership:

6-1 Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo and others (lot number)
Land: Ownership (co-ownership: 3.4% co-ownership interest)
Building: Ownership (co-ownership: 3.4% co-ownership interest)
Site area:
9,681.02 m2 (equivalent to co-ownership interest: 329.15 m2)
Total floor space:
96,897.25 m2 (equivalent to co-ownership interest: 3,294.51 m2)
Structure/floors:
S with flat roof, B2/23F
Completed:February 2013
Number of tenants:
26
Total leasable floor space:
2,235.01 m2
Total leased floor space:
2,235.01 m2
Occupancy rate:
100.0%(Note) As a pass-through master lease agreement has been concluded between the trustee and Taisei Corporation (the master
lessee), “Number of tenants” indicates the number of sublessees subleased by the master lessee at the time of concluding
the purchase agreement. “Total leasable floor space,” “Total leased floor space” and “Occupancy rate” are based on the
figures equivalent to co-ownership interest that JPR plans to acquire at the time of concluding the purchase agreement,out of the space leased by the master lessee to the sublessees.

Transaction terms and conditions
Purchase price:
6,490 million yen
Asset type:
Beneficiary interests
Contract dateFebruary 17, 2023
Acquisition date:
April 12, 2023 (scheduled)

13

7

Asset Management ReportJapan Prime Realty Investment Corporation

2.2.Overview
Corporation
Overviewofof thethe Investment
Investment Corporation(1)(1)
Unitholders’
Unitholders’Capital
Capital9.

Total number of authorized units

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

39th Fiscal
Period as ofJune 30, 2021
5,000,000

40th Fiscal
Period as ofDecember 31, 2021
5,000,000

41st Fiscal
Period as ofJune 30, 2022
5,000,000

42nd Fiscal
Period as ofDecember 31, 2022
5,000,000

958,250

958,250

958,250

997,178

997,178

247,860

247,860

247,860

261,751

261,751

10,946

10,531

10,22910,506

10,435

Total number of units issued andoutstanding
Unitholders' capital (millions of yen)
Total number of unitholders

MattersRelated
RelatedtotoInvestment
Investment Units
Units (Primary(2)(2)
Matters(Primary Investors)
Investors)

10.

The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 42nd fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Custody Bank of Japan, Ltd. (Trust Account)

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

298,847

29.96

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

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

160,045

16.04

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

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

43,607

4.37

Tokyo Tatemono Co., Ltd.

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

29,3002.93

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.50

Meiji Yasuda Life Insurance Company

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

24,0002.40

State Street Bank West Client - Treaty 505234(Standing Proxy: Settlement & Clearing Services
Department, Mizuho Bank, Ltd.)SSBTC CLIENT OMNIBUS ACCOUNT (Standing
proxy: Custody Services Department, Tokyo Branch, The
Hongkong and Shanghai Banking Corporation Limited)
State Street Bank and Trust Company 505103 (Standing
Proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA
02171, U.S.A. (Shinagawa Intercity Building
A, 2-15-1 Konan, Minato-ku, Tokyo)
One Lincoln Street, Boston, MA 02111,
U.S.A.
(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

13,725

1.37

12,461

1.24

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

12,143

1.21

The Shinkumi Federation Bank

1-9-5 Kyobashi, Chuo-ku, Tokyo

11,0891.11

630,217

63.20

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

8

14

Asset Management ReportJapan Prime Realty Investment Corporation

ItemsRelated
RelatedtotoDirectors
Directors(3)(3)Items

11.

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 42nd fiscal period are as follows.
Position
Executive Officer

Name
Yoshihiro Jozaki
Masato Denawa

Supervising
Officers (Note 2)

Nobuhisa Kusanagi

Konomi Ikebe
Independent Auditor

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

Total Directors' Fee
during the 42nd Fiscal
Period (thousands of yen)–
(Note 1)

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

Numberof Owned
Units

–

6,300

Professor at Graduate School of Horticulture, Chiba
University

EY ShinNihon LLC

–

–

–

–
14,700(Note 3)–(Note 1) Yoshihiro Jozaki, Executive Officer, does not receive any compensation from JPR.
(Note 2) 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 3) 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 Trusts Act. The
decision not to reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.

MattersConcerning
Concerning Directors
Directors andInsurance
Agreement(4)(4)
Matters
andOfficers
OfficersLiability
Liability
Insurance
Agreemet

12.

JPR has entered into a directors and officers liability insurance agreement as follows.
Scope of the Insured

Overview of Agreement[Overview of insured event covered by the insurance]
The agreement covers such losses as compensation payment and dispute costs to be borne by the insured when they receive
a claim for compensation for the unjust actions they have taken based on their positions at JPR.

Executive Officer and all
Supervising Officers of JPR[Burden ratio of insurance premium]
JPR bears the entire amount of the insurance premium.
[Measures to ensure the appropriateness of the execution of duties by directors and officers]
The agreement does not protect the actions, etc. which the insured executed while recognizing that it may constitutecriminal act or violate the laws and regulations.

AssetManager,
Manager,Asset
Asset Custodian
Custodian andAgent(5)(5)
Asset
andAdministrative
Administrative
Agent

13.

The asset manager, asset custodian and administrative agents of JPR at the end of the 42nd fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

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

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

Administrative agent(administration concerning investment corporation bonds)

Mizuho Bank, Ltd.

15

9

Asset Management ReportJapan Prime Realty Investment Corporation

3.3.Status
StatusofofJPR’s
JPR’sAssets
Assets Under
Under Management
Management(1)(1)
JPR’s
Asset
JPR’s
AssetStructure
Structure

14.

Asset TypeReal estate

Real estate in trust

41st Fiscal Period(as of June 30, 2022)

Area

42nd Fiscal Period(as of December 31, 2022)

Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

Central Tokyo

109,961,118

21.7

111,801,97822.0

Greater Tokyo

67,499,150

13.3

67,281,625

13.3

Other Cities

19,644,226

3.9

19,814,414

3.9

Central Tokyo

155,493,241

30.7

152,469,216

30.0Greater Tokyo
Other Cities

61,453,840
51,077,424

12.1
10.1

61,169,274
47,245,195

12.0
9.3

Deposits and otherassets

–41,876,811
(–)

8.3
(–)

47,873,742
(–)

9.4
(–)

Total assets–

507,005,813(465,129,001)

100.0(91.7)

507,655,447(459,781,704)

100.0(90.6)(Note 1) Total assets owned by JPR are based on the amounts appropriated on the Balance Sheets as of the end of the fiscal periods (book values after depreciation for realestate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

Major
AssetsOwned
Owned by JPR(2)(2)
Major
Assets15.

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 42nd fiscal period.
Occupancy Rate(%)

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

11,034.78

100.0

11.4

Office23,987.40

21,485.29

89.6

5.4

Office10,417.24
5,971.69

9,875.93
5,703.97

94.8
95.5

3.7
2.4

OfficeOffice15,233.17
6,177.74

14,989.60
6,177.74

98.4
100.0

3.7
1.8

OfficeOffice8,090.40

8,090.40

100.0

2.5

Office13,271.26
12,113.10

12,474.24
11,920.13

94.0
98.4

2.6
2.1

OfficeRetail, etc.

17,621.77
119,373.85

91.5
95.1

2.6
38.3

OfficeBook Value(thousands of yen)

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

38,388,259

11,034.78

Olinas Tower

25,616,803

Shinjuku Center Bldg.
Tokyo Square Garden

24,129,262
18,285,670

BYGS Shinjuku Bldg.
JPR Sendagaya Bldg.

15,522,570
14,680,251

Kanematsu Bldg.

14,668,846

Sencity Bldg.
Kawasaki Dice Bldg.

13,954,355
12,884,022

Shinjuku Square Tower
Total

12,836,939
190,966,982

19,266.47
125,563.25

Property Name

Leased Floor
Space (m2)Asset Class(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.
(Note 2) The tenants of Shinjuku Center Bldg., Tokyo Square Garden, Sencity Bldg., Kawasaki Dice Bldg. and Shinjuku Square Tower have sublet space to a sub-lessee
and a lease agreement has been executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, theleasable floor space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

1016

Asset Management ReportJapan Prime Realty Investment Corporation

ItemizedPortfolio
Portfolio Assets
Assets(3)(3)Itemized

16.

The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 42nd fiscal period (December 31, 2022).
Area Type

Property Name

Kanematsu Bldg.

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

JPR Ningyo-cho Bldg.

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

Shin-Kojimachi Bldg.

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

21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo

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

Office14,500,000

2,381,621

3,050,000

2,098,676

3,110,000

2,424,950

4,510,000

3,270,213

3,790,000

10,734,004

16,300,000

5,230,550

4,940,000

2,699,849

5,120,000

12,836,939

15,300,000

15,522,570

19,400,000

560,485805,000

Real estate

24,129,262

22,300,000

Real estate

3,778,724

3,420,000

Shinagawa Canal Bldg.

Real estate

1,871,871

2,360,000

Rokubancho Bldg.

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

2,891,895

3,720,000

JPR Harajuku Bldg.

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Real estate

8,875,177

10,500,000

4,828,444

6,820,000

14,680,251

11,900,000

Minami Azabu Bldg.

JPR Sendagaya Bldg.

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

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

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

JPR Nihonbashi-horidome Bldg.

Retail, etc.

14,668,846

Real estate

Shinjuku Center Bldg.

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

3,669,306

3,770,000

38,388,259

54,600,000

2,764,100

3,480,000

4,174,472

6,760,000

18,285,670

21,500,000

Science Plaza-Yonbancho Plaza

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

Shibadaimon Center Bldg.

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

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

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

Real estate

5,835,924

6,290,000

Otemachi Financial City North Tower

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

Real estate

11,486,680

13,000,000

Tokyo Tatemono Higashi Shibuya
Bldg.

26-20 Higashi 1-chome, Shibuya-ku, Tokyo

Real estate

11,477,691

12,200,000

JPR Shibuya Tower Records Bldg.

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

11,402,082

14,800,000

JPR Jingumae 432

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

4,251,832

4,210,000

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

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

Beneficiaryinterest
Beneficiaryinterest
Real estate

2,508,519

2,720,000

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

Real estate

3,253,216

3,400,000

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

10,135,578

11,100,000

3,153,522

3,440,000

4,169,957

6,740,000

2,151,347

1,910,000

2,323,922

2,460,000

1,388,342

2,630,000

7,109,981

11,300,000

2,862,101

5,840,000

FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office13-23 Shibaura 4-chome, Minato-ku, Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2022
2022
(thousands of yen)(thousands of yen)
(Note)

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

Across Shinkawa Bldg. Annex

Central Tokyo

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

Kanematsu Bldg. Annex

MS Shibaura Bldg.

Greater Tokyo

Location

Type ofOwnership

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

Kawaguchi Center Bldg.

1-8 Honcho 4-chome, Kawaguchi, Saitama

JPR Ueno East Bldg.

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

Real estate38-5 Akebonocho 2-chome, Tachikawa,Tokyo
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yokohama, Kanagawa

Beneficiaryinterest
Beneficiaryinterest

2,857,735

4,630,000

12,376,344

18,600,000

Real estate

5,080,107

7,640,000

Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower

17

11

Asset Management Report

Area Type

Property NameJPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.

Retail, etc.

Greater Tokyo

OfficeOlinas Tower

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

OfficeOther Cities

JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA(Umekita Plaza and South Building)Retail,etc.

GRAND FRONT OSAKA(North Building)
Housing Design Center Kobe
JPR Chayamachi Bldg.

Japan Prime Realty Investment Corporation

Location
1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1000, etc., Shinmachi, Chuo-ku, Chiba-shi,
Chiba
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa
3-1 Bessho 7-chome, Minami-ku, Saitama,
Saitama
8-3, etc., Ekimae-Honcho, Kawasaki-ku,
Kawasaki, Kanagawa
2-4 Ueno 7-chome, Taito-ku, Tokyo
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka
11-28 Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka
4-1 Ofuka-cho, Kita-ku, Osaka, Osaka(Umekita Plaza)
4-20 Ofuka-cho, Kita-ku, Osaka, Osaka(South Building)
3-1 Ofuka-cho, Kita-ku, Osaka, Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo
2-19 Chayamachi, Kita-ku, Osaka, Osaka

Total

Type ofOwnership
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2022
2022
(thousands of yen)(thousands of yen)
(Note)
25,616,803
40,100,000

Real estate

7,398,121

10,600,000

Beneficiaryinterest

5,564,627

11,200,000

Real estate

13,954,355

15,400,000

Beneficiaryinterest

6,900,842

11,100,000

Real estate

1,551,137

3,040,000

Real estate

7,093,145

5,320,000

3,442,148

4,280,000

12,884,022

13,800,000

3,725,852

4,130,000

1,516,506

2,170,000

1,639,073

2,350,000

2,235,417

4,120,000

1,299,625

1,480,000

1,972,782

4,190,000

2,071,407

4,050,000

Real estate

3,766,962

3,480,000

Real estate

9,997,006

23,700,000

5,261,671

4,620,000

3,953,836

4,900,000

Beneficiaryinterest

11,811,127

12,300,000

Beneficiaryinterest

9,503,321

10,100,000

Real estate

6,050,445

7,330,000

Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest

5,980,424

8,410,000

459,781,704

587,035,000(Note) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

1218

Asset Management ReportJapan Prime Realty Investment Corporation

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

OfficeOfficeOfficeRetail,etc.

Other Cities

Retail, etc.

Greater Tokyo

Retail, etc.

Central Tokyo

Area Type

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg. (Note 3)
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg. (Note 4)
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.
Otemachi Financial City North Tower
Tokyo Tatemono Higashi Shibuya Bldg.
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA(Umekita Plaza and South Building)
GRAND FRONT OSAKA(North Building)
JPR Umeda Loft Bldg. (Note 5)
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

41st Fiscal Period
42nd Fiscal Period(from Jan. 1, 2022 to Jun. 30, 2022)(from Jul. 1, 2022 to Dec. 31, 2022)
RentalRentalRatio to Number
Ratio toNumber of Occupancy Revenues
Occupancy Revenues
Total of Tenants
Total
Tenants at Rate at throughout
Rate atthroughout
Rental at Period
RentalPeriod End Period End
PeriodPeriod End
PeriodRevenues
End
Revenues(Note 1)(%)(thousands(%)(thousands(%)(Note 1)(%)
of yen)of yen)12
100.0
405,297
2.4
12
100.0
464,7732.7
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
94,1510.6
5100.0
95,0300.5
17100.0
130,2670.8
1788.1
101,1250.6
789.2
120,4450.7
7
89.2
114,803
0.7
10
100.0
484,887
2.8
10
100.0
496,4982.9
2100.0
142,7160.8－－
253,100
1.5
9
90.9
142,8310.8
884.0
150,7510.9
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
24
94.6
408,2402.4
26
91.5
405,5732.3
23
98.4
577,4183.4
23
98.4
610,8513.5
4100.0
34,1140.2
4100.0
38,7310.2
28
97.0
519,3343.1
26
94.8
550,6523.2
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
6
100.0
71,6800.4
6100.0
75,5930.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
10
100.0
294,557
1.7
9
91.7
289,9981.7
5
100.0
192,7761.1
5
100.0
195,1441.1
6
100.0
303,7171.8
6
100.0
303,4411.7
9100.0
116,0840.7
9100.0
122,736
0.7
2

100.0

1,802,000

10.6

2

100.0

1,802,000

10.4

24
9
47
6
10
14
1
7
1

98.3
100.0
92.4
83.2
100.0
79.6
100.0
100.0
100.0

117,223
189,171377,207
110,649
265,822
278,190(Note 2)87,736(Note 2)

0.7
1.1
2.2
0.7
1.6
1.6
(Note 2)0.5
(Note 2)

25
9
49
8
9
17
1
7
1

100.0
100.0
95.5
100.0
99.9
100.0
100.0
100.0
100.0

117,657
165,447
373,660
127,877
284,269
307,659(Note 2)
91,213(Note 2)

0.7
1.0
2.1
0.7
1.6
1.8
(Note 2)0.5
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

9
5
7
40
19
23
40
10
20
8
44
19
21
5
70
1
1
1
3
29
10
11
20
15
18
14
12
5
16
8
14

100.0
87.2
100.0
95.3
100.0
94.3
100.0
100.0
90.8
100.0
100.0
92.5
100.0
65.0
95.0
100.0
100.0
100.0
100.0
98.4
100.0
100.0
100.0
99.9
99.8
87.8
100.0
94.1
99.9
100.0
99.9

195,419
77,497268,274
133,126
133,424
109,663477,209
181,594
146,116
337,054355,522921,898
290,928
239,717
486,494(Note 2)
(Note 2)
(Note 2)
127,041
457,179
117,145
126,506
113,870
199,418
96,059102,930
138,120
146,400
566,130
128,226
148,858

1.1
0.5
1.6
0.8
0.8
0.6
2.8
1.1
0.9
2.0
2.1
5.4
1.7
1.4
2.9
(Note 2)
(Note 2)
(Note 2)
0.7
2.7
0.7
0.7
0.7
1.2
0.6
0.6
0.8
0.9
3.3
0.8
0.9

9
5
7
42
19
24
40
10
21
8
43
18
21
6
70
1
1
1
3
29
10
11
23
15
18
14
12
6
16
8
13

100.0
87.2
100.0
98.5
100.0
100.0
100.0
100.0
93.2
100.0
99.1
89.6
100.0
70.6
94.0
100.0
100.0
100.0
100.0
98.4
100.0
100.0
100.0
99.9
99.8
82.3
100.0
99.8
99.9
100.0
95.9

202,905
75,655
273,024
140,610135,258
117,598
487,237
185,978
142,486
433,829
353,080
904,822295,254
191,288479,804(Note 2)
(Note 2)
(Note 2)
127,041465,702
127,726
126,696
118,600
199,190
109,825
107,440
138,406
153,730
620,763
132,541
152,141

1.2
0.4
1.6
0.8
0.8
0.7
2.8
1.1
0.8
2.5
2.0
5.2
1.7
1.1
2.8
(Note 2)
(Note 2)
(Note 2)
0.7
2.7
0.7
0.7
0.7
1.1
0.6
0.6
0.8
0.9
3.6
0.8
0.9

243

90.4

(Note 2)

(Note 2)

243

91.4

(Note 2)

(Note 2)

100

98.6

(Note 2)

(Note 2)

101

98.5

(Note 2)

(Note 2)

1
1
5
1,171

100.0
100.0
100.0
97.5

(Note 2)
(Note 2)
177,714
17,019,663(Note 2)
(Note 2)
1.0
100.0

－
1
5
1,180

－
100.0
100.0
97.6

(Note 2)
(Note 2)
181,469
17,392,648(Note 2)
(Note 2)
1.0
100.0

19

13

Asset Management ReportJapan Prime Realty Investment Corporation(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Otemachi Financial City North Tower, Rise Arena Bldg., Sencity Bldg. and Kawasaki Dice Bldg.: when a single tenantleases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Otemachi Financial
City North Tower, Rise Arena Bldg., Sencity Bldg., Kawasaki Dice Bldg., GRAND FRONT OSAKA (Umekita Plaza and South Building) and part of GRANDFRONT OSAKA (North Building) have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates inaccordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants (for GRAND FRONTOSAKA (North Building), some portions employ fixed master lease or direct lease, but the figure indicates the number of end tenants, including those of such
portions.).
(Note 2) JPR does not disclose the rental revenues throughout period of the properties and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.
(Note 3) JPR sold Gotanda First Bldg. on December 22, 2022 through an exchange transaction.
(Note 4) For Shinjuku Center Bldg., JPR additionally acquired 7.0% co-ownership interest of the sectionally-owned building (equivalent to 21.5% of the entire building)through an exchange transaction on December 22, 2022.
(Note 5) For JPR Umeda Loft Bldg., JPR sold its 40.0% co-ownership interest on December 24, 2021 and 30.0% co-ownership interest on June 30, 2022 and sold theremaining 30.0% co-ownership interest on December 23, 2022.

StatusofofOther
OtherAssets
Assets(4)(4)
Status17.

Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above. There
were no additional major specified assets that are main investment targets of JPR other than those listed under (3) above and thoseindicated below as of the end of the 42nd fiscal period.
1) Stock
Issuer Name

Number of
SharesKMO Corporation

1,666

Acquisition Price(thousands of yen) (Note 1)

Appraisal Value(thousands of yen) (Note 2)

Unit Price

Unit Price

50

Amount83,740

Amount50

83,740

Profit andLoss from
Valuation

Remarks－－(Note 1) The acquisition price indicates the amount that includes the expenses required for the acquisition.
(Note 2) The appraisal value indicates the book value.

2) Other securities
Type of AssetBook Value(thousands of yen)

VolumeClaim for refund of funds

Unit Price
1

Appraisal Value(thousands of yen) (Note 1)

AmountUnit Price

5,120

－

Amount5,120－Profit andLoss from
Valuation－

Remarks(Note 2)

(Note 1) The appraisal value indicates the book value.
(Note 2) The asset is a claim for refund of funds of Knowledge Capital, a general incorporated association.

3) Other assets
Type of Asset
Claim for refund of funds

Book Value(thousands of yen)

VolumeUnit Price
1

Appraisal Value(thousands of yen) (Note 1)

Amount710－

Unit Price

Amount－(Note 1) The appraisal value indicates the book value.
(Note 2) The asset is a claim for refund of funds of GRAND FRONT OSAKA TMO, a general incorporated association.

14

20

710

Profit andLoss from
Valuation－

Remarks(Note 2)Asset Management ReportJapan Prime Realty Investment Corporation

4. Capital Expenditures of Owned Real Estate
4. Capital Expenditures of Owned Real Estate(1)(1)
PlannedPlannedCapital
CapitalExpenditures
Expenditures

18.

The following are major items of capital expenditures for renovation works, etc. planned as of the end of the 42nd fiscal period for
JPR-owned real estate and entrusted real estate regarding beneficiary interests in real estate. Furthermore, the planned construction
expenses include portions that are classified as expenses in accounting.

Property Name
Housing Design
Center Kobe
Sompo Japan Sendai
Bldg.

Location

PurposePlanned Amount (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 42nd
Paid
Fiscal Period

Schedule

Kobe, Hyogo

Second phase of replacement of toilets

Jan. 2023–Jun. 2023

100

–

–

Sendai, Miyagi

Replacement of generators for emergency

Oct. 2022–Mar. 2023

93

–

–

Second phase of reinforcement of elevators

Aug. 2022–Mar. 2023

67

–

–

First phase of reinforcement of elevators

Mar. 2023–Jun. 2023

51

–

–

Replacement of air conditioning units

Apr. 2023–Jun. 2023

49

–

–

Renovation of the entrance hallJan. 2023–Jun. 2023

46

–

–

Repair of exterior walls

Jan. 2023–Jun. 2023

46

–

–

First phase of replacement of lighting
equipment with LED lamps

Jun. 2022–Mar. 2023

43

–

–

Repair of exterior walls

Jan. 2023–Jun. 2023

40

–

–

Replacement of power receiving equipment
Reinforcement of elevators (West No. 27)
Reinforcement of elevators (West No. 24)

Jan. 2023–Mar. 2023
Jan. 2023–Mar. 2023
Apr. 2023–Jun. 2023

40
35
35

–
–
–

–
–
–

Fifth phase of replacement of piping equipment

Jan. 2023–Mar. 2023

35

–

–

Replacement of escalators

Jan. 2023–Jun. 2023

33

–

–

Replacement of air conditioning units

Jan. 2023–Jun. 2023

30

–

–

Reinforcement of elevators

Jan. 2023–Jun. 2023

30

–

–

Renewal of elevator monitor boards

Jan. 2023–Jun. 2023

30

–

–

Minato-ku,
MS Shibaura Bldg.
Tokyo
Tokyo Tatemono
Shibuya-ku,
Higashi Shibuya Bldg. Tokyo
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
JPR Shinsaibashi
Osaka, Osaka
Bldg.
Kawaguchi Center
Kawaguchi,
Bldg.
Saitama
JPR Yokohama Nihon Yokohama,
Odori Bldg.
Kanagawa
Sencity Bldg.
Chiba, Chiba
Sencity Bldg.
Chiba, Chiba
Sencity Bldg.
Chiba, Chiba
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
Housing Design
Kobe, Hyogo
Center Kobe
Kawasaki,
Kawasaki Dice Bldg.
Kanagawa
JPR Yokohama Nihon Yokohama,
Odori Bldg.
Kanagawa
Sumida-ku,
Olinas Tower
Tokyo

CapitalExpenditures
Expendituresduring
during thethe 42nd(2)(2)
Capital42nd Fiscal
FiscalPeriod
Period

19.

The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 42nd fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas with the aim of attracting new tenants, among other works. In addition, aside from these
constructions, JPR conducted construction of 443 million yen (Note), which was appropriated as expenditures for repair andmaintenance.
Property Name

Purpose

PeriodRepair of exterior walls
Replacement of toilets and repair ofcorridors in common areas
Fourth phase of replacement of piping
equipment
Replacement of escalators
First phase of reinforcement of elevators
Repair of exterior walls
Repair of exterior walls
Replacement of elevators (No.1 and
No.2)

May 2022–Dec. 2022

Construction
Expenses(millions of yen)220

Jun. 2022–Dec. 2022

112

Kobe, Hyogo

Reinforcement of elevator (No. 3)

Chiba, Chiba

Location

Yakuin Business Garden

Fukuoka, Fukuoka

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Shinjuku Center Bldg.

Shinjuku-ku, TokyoBYGS Shinjuku Bldg.
MS Shibaura Bldg.
JPR Sendagaya Bldg.
JPR Ueno East Bldg.

Shinjuku-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Taito-ku, Tokyo

JPR Shinsaibashi West

Osaka, Osaka

Housing Design Center
Kobe
Sencity Bldg.
Other Capital Expenditures

Jul. 2022–Nov. 2022

67

Oct. 2022–Dec. 2022
Jul. 2021–Aug. 2022
Jul. 2022–Nov. 2022
Jul. 2022–Dec. 2022

65
57
44
43

Jun. 2022–Dec. 2022

40

Sep. 2022–Dec. 2022

35

Reinforcement of elevators
Jul. 2022–Oct. 2022
Replacement of air-conditioning units, repair of common areas,
replacement of lighting equipment with LED lamps, etc.
Total

31
782
1,503

(Note) Expenditures for repair and maintenance included 10 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

21

15

Asset Management ReportJapan Prime Realty Investment Corporation

AmountsReserved
Reserved forfor Long-Term Repairs(3)(3)
Amounts
Repairsand
andMaintenance
MaintenancePlans
Plans

20.

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

16(Millions of yen)

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

39th Fiscal Period(Jan. 1, 2021 Jun. 30, 2021)

40th Fiscal Period(Jul. 1, 2021 Dec. 31, 2021)

41st Fiscal Period(Jan. 1, 2022 Jun. 30, 2022)

42nd Fiscal Period(Jul. 1, 2022 Dec. 31, 2022)

1,424

1,421

1,506

1,610

1,758

952

859

1,008

802

1,024

955

774

904

654

1,053

1,421

1,506

1,610

1,758

1,729

22

Asset Management ReportJapan Prime Realty Investment Corporation

5. Expenses and Liabilities
5. Expenses and Liabilities
Details
ExpensesRelated
Relatedto
toManagement
Management(1) (1)
Detailsof ofExpenses

1.

41st Fiscal Period(Jan. 1, 2022 - Jun. 30, 2022)
802,633
242,442Item(a) Asset Management Fees (Note)
Management fee 1
Management fee 2Management fee 3(Thousands of yen)

42nd Fiscal Period(Jul. 1, 2022 - Dec. 31, 2022)

792,966
246,142

204,735
355,455

208,800
338,023(b) Administrative Service and Asset Custody Fees

83,054

84,648(c) Directors' Compensation(d) Trust Fees

6,300
17,361

6,300
15,608(e) Other Operating Expenses
Total

158,329
1,067,678

156,754
1,056,277(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (41st fiscal period: 56,500 thousand yen,
42nd fiscal period: 16,600 thousand yen) have been paid and included in the book value of each property, and fees for asset management of the sold property (41stfiscal period: 26,250 thousand yen, 42nd fiscal period: 47,600 thousand yen) have been paid and deducted from gain on sale of each property.

StatusLoans
Payable(2) (2)
Statusof of
Loans
Payable2.

As of December 31, 2022 JPR has the following loans payable.

Long-Term Loans Payable

Category

Drawdown
Date

Balance asof Jul. 1,
2022(millionsof yen)Mizuho Bank, Ltd.

Jun. 27, 2014

5,000

5,000

Mizuho Bank, Ltd.

Mar. 11, 2015

2,000

2,000

1.011 Mar. 11, 2024

Mizuho Bank, Ltd.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Mizuho Bank, Ltd.

Feb. 4, 2016

5,000

5,000

0.804 Feb. 4, 2026

Mizuho Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Mizuho Bank, Ltd.

Dec. 5, 2019

2,000

2,000

0.646 Dec. 5, 2029

Mizuho Bank, Ltd.

Mar. 30, 2021

3,000

3,000

0.675 Mar. 31, 2031

Mizuho Bank, Ltd.

Mar. 30, 2022

2,400

2,400

0.675 Mar. 30, 2032

Mar. 30, 2022

1,000

1,000

0.675 Mar. 30, 2032

Mar. 30, 2022

600

600

0.675 Mar. 30, 2032

MUFG Bank, Ltd.

Aug. 31, 2015

1,000

1,000

0.873 Aug. 31, 2023

MUFG Bank, Ltd.

Mar. 25, 2016

5,000

5,000

MUFG Bank, Ltd.

Dec. 15, 2016

2,000

2,000

Principal lump
0.510 Mar. 25, 2024 sum repayment (Note 3) Unsecured/
Unguaranteedon maturity
0.633 Dec. 13, 2024

MUFG Bank, Ltd.

Aug. 8, 2017

1,000

1,000

0.638 Aug. 8, 2025

MUFG Bank, Ltd.

Aug. 29, 2017

5,000

5,000

0.600 Aug. 29, 2025

MUFG Bank, Ltd.

Sep. 5, 2017

3,000

3,000

0.593 Sep. 5, 2025

MUFG Bank, Ltd.

Jun. 25, 2021

4,000

4,000

0.450 Jun. 23, 2028

Sumitomo Mitsui Banking Corporation

Dec. 5, 2019

1,000

1,000

0.245 Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

Jun. 26, 2020

3,000

3,000

0.300 Jun. 26, 2025

Sumitomo Mitsui Banking Corporation

Mar. 30, 2021

2,000

2,000

0.450 Mar. 30, 2028

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

2,500

2,500

0.675 Mar. 30, 2032

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

2,000

2,000

0.600 Mar. 28, 2031

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

2,000

2,000

0.525 Mar. 29, 2030

Sumitomo Mitsui Banking Corporation

Jun. 27, 2022

2,500

2,500

0.698 Jun. 27, 2029

LenderMizuho Bank, Ltd.
(Green Loan)
Mizuho Bank, Ltd.
(Sustainability Loan)

23

Balance as
Averageof Dec. 31, Interest Rate
Repayment
2022
(%)
Date
(millions(Note 1)of yen)(Note 2)

Repayment
MethodUse

Remarks

1.178 Jun. 27, 2023

17

Asset Management Report

Long-Term Loans Payable

Category

18

Japan Prime Realty Investment Corporation

Drawdown
Date

Balance asof Jul. 1,
2022(millionsof yen)Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15, 2016

3,000

3,000

0.843 Jun. 14, 2027

Development Bank of Japan, Inc.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Development Bank of Japan, Inc.

Jun. 27, 2019

2,100

2,100

0.572 Jun. 27, 2029

Development Bank of Japan, Inc.

Jun. 25, 2021

800

800

0.600 Jun. 25, 2030

Development Bank of Japan, Inc.

Dec. 3, 2021

2,000

2,000

0.600 Dec. 3, 2030

SBI Shinsei Bank, Limited (Note 4)

Dec. 5, 2014

2,000

2,000

1.134 Dec. 5, 2024

SBI Shinsei Bank, Limited (Note 4)

Dec. 15, 2016

1,000

1,000

0.843 Jun. 14, 2027

SBI Shinsei Bank, Limited (Note 4)

Apr. 5, 2019

5,000

5,000

0.673

SBI Shinsei Bank, Limited (Note 4)

Sep. 24, 2020

1,000

1,000

0.675 Sep. 24, 2030

SBI Shinsei Bank, Limited (Note 4)

Sep. 24, 2020

1,000

1,000

0.525 Sep. 25, 2028

Shinkin Central Bank

Dec. 5, 2018

3,000

3,000

0.663

Shinkin Central Bank

Jun. 27, 2019

2,000

2,000

0.447 Dec. 27, 2027

Shinkin Central Bank

Dec. 14, 2021

2,000

2,000

0.525 Dec. 14, 2029

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

0.604

The Norinchukin Bank

Jun. 27, 2019

2,000

2,000

0.405 Jun. 25, 2027

The Norinchukin Bank

Dec. 24, 2020

2,000

2,000

0.525 Dec. 25, 2028

The Norinchukin Bank

Dec. 14, 2021

2,000

2,000

0.525 Dec. 14, 2029

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2020

3,000

3,000

0.586

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2020

2,000

2,000

0.606 Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2020

2,000

2,000

0.675 Dec. 24, 2030

Aozora Bank, Ltd.

Jul. 3, 2017

900

900

Aozora Bank, Ltd.

Aug. 25, 2017

1,000

1,000

0.574 Feb. 25, 2025

Aozora Bank, Ltd.

Aug. 25, 2017

1,000

1,000

0.534 Aug. 23, 2024

Aozora Bank, Ltd.

Aug. 30, 2018

2,000

2,000

0.553 Feb. 25, 2025

Aozora Bank, Ltd.

Sep. 24, 2020

500

500

0.525 Sep. 25, 2028

Aozora Bank, Ltd.

Apr. 5, 2022

1,000

1,000

0.525

Apr. 5, 2030

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2016

2,000

2,000

0.480

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

Sep. 24, 2019

1,000

1,000

0.554 Sep. 21, 2029

The Bank of Fukuoka, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813 Jun. 21, 2028

Sumitomo Life Insurance Company

Oct. 11, 2016

2,000

2,000

0.453 Oct. 11, 2024

Sumitomo Life Insurance Company

Jul. 22, 2019

1,000

1,000

0.583 Jul. 20, 2029

Sumitomo Life Insurance Company

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Shinkumi Federation Bank

Feb. 5, 2018

4,000

－

0.404 Aug. 5, 2022

LenderBalance as
Averageof Dec. 31, Interest Rate
Repayment
2022
(%)
Date
(millions(Note 1)of yen)(Note 2)

0.625

Use

Remarks

Apr. 5, 2029

Jun. 4, 2027

Jun. 5, 2025

Feb. 4, 2030

Jul. 3, 2025

Feb. 5, 2025

The Shinkumi Federation Bank

Aug. 5, 2022

－

4,000

0.358 Aug. 5, 2027

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646 May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 14, 2021

1,000

1,000

0.525 Dec. 14, 2029

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

0.969 Sep. 4, 2024

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Taiyo Life Insurance Company

Dec. 25, 2020

1,000

1,000

0.675 Dec. 24, 2030

24

Repayment
MethodJun. 5, 2028

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

Asset Management Report

Long-Term Loans Payable

Category

Japan Prime Realty Investment Corporation

LenderDrawdown
Date

Balance asof Jul. 1,
2022(millionsof yen)The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816

The Chugoku Bank, Ltd.

Sep. 25, 2018

1,000

1,000

0.661 Mar. 25, 2026

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

The Yamaguchi Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Yamaguchi Bank, Ltd.

Mar. 30, 2022

1,000

1,000

0.675 Mar. 30, 2032

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

The Iyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Kiyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Kiyo Bank, Ltd.

Mar. 30, 2022

1,000

1,000

0.675 Mar. 30, 2032

Sompo Japan Insurance Inc.

Dec. 25, 2015

2,000

2,000

0.759 Dec. 25, 2023

Nippon Life Insurance Company

Nov. 22, 2019

2,000

2,000

0.225 Nov. 22, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2020

1,000

1,000

0.300

The Hachijuni Bank, Ltd.

Sep. 24, 2021

1,000

1,000

0.310 Sep. 24, 2026

The Yamanashi Chuo Bank, Ltd.

Apr. 30, 2021

1,000

1,000

0.600 Apr. 30, 2030

The Yamanashi Chuo Bank, Ltd.

Apr. 5, 2022

1,000

1,000

0.600

Resona Bank, Ltd.

Mar. 30, 2017

2,000

－

Resona Bank, Ltd.

Sep. 30, 2022

－

2,000

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteed
0.888 Sep. 30, 2031
on maturity

NTT TC Leasing Co., Ltd.

May 31, 2018

1,000

1,000

0.408 May 31, 2023

Kansai Mirai Bank, Limited

Mar. 30, 2022

1,000

1,000

0.600 Mar. 30, 2032

The 77 Bank, Ltd.

May 31, 2018

1,000

1,000

0.408 May 31, 2023

Daishi Hokuetsu Bank, Ltd.

Nov. 21, 2017

1,000

－

0.396 Nov. 21, 2022

Daishi Hokuetsu Bank, Ltd.

Nov. 21, 2022

－

1,000

0.566 Nov. 21, 2028

Daido Life Insurance Company

Dec. 27, 2018

1,000

1,000

0.316 Dec. 25, 2023

The Chiba Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.449 Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Dec. 27, 2018

1,000

1,000

0.299 Jun. 27, 2023

The Hyakugo Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.582 Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2017

1,000

－

0.396 Nov. 21, 2022

The Hiroshima Bank, Ltd.

Nov. 21, 2022

－

1,000

0.566 Nov. 21, 2028

Mitsui Sumitomo Insurance Company,
Limited

Oct. 4, 2019

1,000

1,000

0.310

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691 Mar. 25, 2026

Bank of Kyoto, Ltd.

Mar. 30, 2022

500

500

0.600 Mar. 30, 2032

165,000

165,000

Total

Balance as
Averageof Dec. 31, Interest Rate
Repayment
2022
(%)
Date
(millions(Note 1)of yen)(Note 2)

Repayment
MethodUse

Remarks

Oct. 6, 2023

Oct. 6, 2023

Oct. 9, 2025

Apr. 5, 2032

0.438 Sep. 30, 2022

Oct. 2, 2026

(Note 1) The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 2) Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 4) The bank changed its name from Shinsei Bank, Ltd. to SBI Shinsei Bank, Limited as of January 4, 2023.

25

19

Asset Management ReportJapan Prime Realty Investment Corporation

InvestmentCorporation
Corporation Bonds
Bonds(3)(3)
Investment

3.

Details of JPR’s investment corporation bonds outstanding as of December 31, 2022 are as follows.
Name
Seventh Series ofInvestment Corporation Bonds
Eighteenth Series ofInvestment Corporation Bonds
Nineteenth Series ofInvestment Corporation Bonds
Twenty-first Series ofInvestment Corporation Bonds
Twenty-second Series ofInvestment Corporation Bonds
Twenty-third Series ofInvestment Corporation Bonds
Twenty-fourth Series ofInvestment Corporation Bonds(Green Bonds)
Twenty-fifth Series ofInvestment Corporation Bonds(Green Bonds)
Twenty-sixth Series ofInvestment Corporation Bonds
Twenty-seventh Series ofInvestment Corporation Bonds(Sustainability Bonds)
Twenty-eighth Series ofInvestment Corporation Bonds(Green Bonds)
Total

Issue Date

Balance as of
Balance as of
CouponRate
Jul. 1, 2022
Dec. 31, 2022(%)
(millions of yen) (millions of yen)

Maturity Date

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

May 31, 2018

3,000

3,000

0.550

May 31, 2028

Jul. 31, 2019

5,000

5,000

0.570

Jul. 31, 2029

Nov. 26, 2020

6,000

6,000

0.510

Nov. 26, 2030

Mar. 16, 2021

3,000

3,000

0.760

Mar. 14, 2036

Dec. 7, 2021

1,400

1,400

0.420

Dec. 5, 2031

Dec. 7, 2021

1,000

1,000

0.670

Dec. 5, 2036

37,90037,900

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

SubscriptionRights
Rights toto Shares
Shares(4)(4)
Subscription

4.

Not applicable20

26

Asset Management ReportJapan Prime Realty Investment Corporation

6.6.Acquisitions
duringthe
the42nd
42ndFiscal
FiscalPeriodAcquisitions andand Sales
Sales during
Period(1)(1)
Acquisition
Real Estate
EstateandandAsset-Backed
Asset-Backed
Securities
Acquisitionandand Sale
Sale of Real
Securities

5.

Type of
Asset

Real estate
Beneficiaryinterest
Beneficiaryinterest

Acquisition
Real Estate Name

Shinjuku Center Bldg.
(additional acquisition)(Note 2)
Gotanda First Bldg.
(Note 2)JPR Umeda Loft Bldg.
(30.0% co-ownershipinterest)

Sale

Acquisition Date

AcquisitionPrice(millions ofyen)(Note 1)

December 22, 2022

3,320

Total

Sale Date

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

－

－

－

－

－

－

－

－ December 22, 2022

4,270

2,921

1,348

1,559

(210)

－

－ December 23, 2022

5,250

3,718

1,531

184

1,347

9,520

6,639

2,880

1,744

1,136

－

3,320

－

(Note 1) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estate transaction
brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 2) The additional acquisition of Shinjuku Center Bldg. and the sale of Gotanda First Bldg. were conducted through an exchange. For Gotanda First Bldg., the sale
expense includes reduction of noncurrent assets amounting to 1,537 million yen, and sale profit and loss indicates the amount of loss on exchange of real estate.

Acquisitionandand Sale
Sale ofof Other(2)(2)
Acquisition
OtherAssets
Assets6.

JPR made no acquisition or sale of other assets in the 42nd fiscal period.

Surveyon
onValues
Values ofof Specified
Specified Assets,(3)(3)
SurveyAssets,Etc.
Etc.

7.

1) Real estate, etc.
Acquisition
Real Estate
Price or Sale
Appraisal Value
Price
Real Estate Appraiser(millions of yen)(millions of yen)
(Note 2)
(Note 1)

AcquisitionorType of Asset
Sale

Real Estate NameTransaction Date

Acquisition

Real estate

December 22, 2022

3,320

3,320

Japan Real Estate
Institute

November 1, 2022

Sale

Beneficiaryinterest

Shinjuku Center
Bldg. (additional
acquisition).
Gotanda First Bldg.

December 22, 2022

4,270

4,270

November 1, 2022

Sale

Beneficiaryinterest

JPR Umeda Loft
Bldg.
(30.0% co-ownershipinterest)

Japan Real Estate
Institute

December 23, 2022

5,250

4,200
(Note 3)

Japan Valuers Co.,Ltd.

November 1, 2021

Appraisal Date

(Note 1) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 2) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Real Estate
Subject to Securitization.”(Note 3) The real estate appraisal value of JPR Umeda Loft Bldg. (30.0% co-ownership interest) indicates the value equivalent for 30.0% co-ownership interest of theappraisal value of the entire property as of November 1, 2021.

27

21

Asset Management ReportJapan Prime Realty Investment Corporation

Transactionswith
withInterested
Interested Parties and(4)(4)
Transactions
and Major
MajorShareholders
Shareholders

8.

1) Transaction Status(Thousands of yen)Transaction Amount, Etc.

Category

Purchase Amount, Etc.

Total

Sale Amount, Etc.
3,320,000

9,520,000

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

3,320,000(100.0%)4,270,000(44.9%)

3,320,000(100.0%)4,270,000(44.9%)

2) Value of Fee Expenses
Category

Total Paid Fees
(A)

Property Brokerage Fees

157,500

Property Management Fees (Note 2)

342,599

Outsourcing Expenses

703,637

Tenant Brokerage Fees

38,454

Breakdown of Transaction with Interested Parties andMajor Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Real Estate Sales Co., Ltd.
157,500
Tokyo Tatemono Co., Ltd.
229,964
Prime Place Co., Ltd.
21,833
Tokyo Tatemono Co., Ltd.
448,418
Prime Place Co., Ltd.
13,115
Tokyo Tatemono Co., Ltd.
5,347

(Thousands of yen)
Ratio to Total
Amount(B/A)
100.0%
67.1%
6.4%
63.7%
1.9%
13.9%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The property management fees indicated in the above table include construction management fees (total of 35,668 thousand yen) appropriated as assets and nothandled as expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or
major shareholders during the 42nd fiscal period.
Tokyo Tatemono Co., Ltd.
Prime Place Co., Ltd.
Tokyo Real Estate Management Co., Ltd.
Shinjuku Center Building Management Co., Ltd.

679,715 thousand yen
37,205 thousand yen
202,920 thousand yen
98,172 thousand yen(5) Transactions with the Asset Management Company regarding(5) Transactions
with the AssetManagement
Company regarding
Concurrent
WorkManagement
Conducted by the AssetCompany
Management Company
Concurrent
Work
Conducted
by theAsset
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

22

28

Asset Management ReportJapan Prime Realty Investment Corporation

7. Overview of Accounting
7. Overview of Accounting(1)(1)
Assets,Profitsand
andLoss
Loss
Assets,Liabilities,
Liabilities,Principal,
Principal, andand Profits

9.

For assets, liabilities, principal and profits and loss, please refer to the Balance Sheets, Statements of Income and Retained Earnings,
Statements of Unitholders' Equity and Notes to Financial Statements as well as Distribution Information on later pages of this report.

(2)(2)
ChangesofDepreciation
Depreciation
ChangesininCalculation
Calculation Method
Method of10.

No change has been made.

(3)(3)
Changes
ininValuation
Changes
ValuationMethod
MethodofofReal
RealEstate
EstateandandInfrastructure
InfrastructureAssets11.
Assets11.

No change has been made.

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

12.

Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

–

40

January 22, 2002 (Note)

60

–

100

Accumulated Total

100

–

100

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

(2)(2)
Units
UnitsHeld
Held

13.

Number of Units Held at End
of Period

33rd Fiscal Period(Jan. 1, 2018 – Jun. 30, 2018)
34th Fiscal Period(Jul. 1, 2018 – Dec. 31, 2018)35th Fiscal Period(Jan. 1, 2019 – Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 – Jun. 30, 2020)
38th Fiscal Period(Jul. 1, 2020 – Dec. 31, 2020)
39th Fiscal Period(Jan. 1, 2021 – Jun. 30, 2021)
40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)
41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)
42nd Fiscal Period(Jul. 1, 2022 – Dec. 31, 2022)

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

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

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

29

23

Asset Management ReportJapan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation
10. Disclosure
Real Estate
Owned
by Corporation Owning Foreign Real Estate
OwningonForeign
RealEstateNot applicable

11.
11.Other
Other
Notice(1)(1)
Notice14.

There are no major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the
42nd fiscal period.

Other(2)(2)
Other

15.

Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis Semi-Annual Report.

24

30

Financial Statements

Japan Prime Realty Investment Corporation(1)(1)Balance
BalanceSheets
Sheets1.

(Thousands of yen)
End of 41st Fiscal Period(Jun. 30, 2022)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

End of 42nd Fiscal Period(Dec. 31, 2022)

26,708,733
12,848,490
492,985
127,655
42,311

33,127,007
12,379,450
583,489
132,360
39,60440,220,177

46,261,911

68,379,448(22,902,238)

69,506,736(23,785,420)

45,477,209

45,721,315

Buildings in trust
Accumulated depreciation

98,413,791(38,619,956)

96,194,049(38,559,767)

Buildings in trust, net

Buildings, net

59,793,834

57,634,282

Structures
Accumulated depreciation

88,829(36,612)

94,101(38,968)

Structures, net
Structures in trust
Accumulated depreciation

52,216
127,940(80,917)

55,133
128,272(81,897)

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

47,022

46,374

834,144(565,442)
268,702

834,332(582,683)
251,649

2,017,750(1,537,147)
480,602

1,996,314(1,544,705)
451,608

215,516(108,569)

217,792(119,029)

Tools, furniture and fixtures, net

106,946

98,763Tools, furniture and fixtures in trust
Accumulated depreciation

295,521(195,072)

304,416(202,509)

100,448
139,394,811
207,559,589
2,583
42,610Tools, 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
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

31*1

101,906
140,959,190
202,608,096
9,960
41,045453,326,577

447,979,326

11,801,831
2,970
11,804,801

11,801,831
2,463
11,804,294

88,860784,089
554,046710

88,860802,490
520,563710

1,427,705
466,559,084

1,412,623
461,196,244

180,345
46,206

165,429
31,861

226,551
507,005,813

197,291
507,655,447

1

Financial Statements

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 41st Fiscal Period(Jun. 30, 2022)
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings
Total surplus
Total unitholders' equity*3

Total net assets

2

2,677,555
2,000,000
16,000,000
1,057,202
86,586605
542,378
2,813,178
1,215

3,027,125
2,000,000
21,000,000
1,082,817
90,561
605
499,038
2,821,057
3,274

25,178,722

30,524,479

35,900,000
149,000,000
10,081,605
13,932,856

35,900,000
144,000,000
10,185,789
13,441,294

208,914,462

203,527,083

234,093,184

234,051,563

261,751,240

261,751,240

2,546,454

3,376,470

2,546,454

3,376,470

8,614,933

8,476,171

11,161,388
272,912,629

11,852,642
273,603,883

272,912,629
507,005,813

Total liabilities and net assets

32

End of 42nd Fiscal Period(Dec. 31, 2022)*3

273,603,883
507,655,447

Financial Statements

Japan Prime Realty Investment Corporation

StatementsofofIncome
Income andand Retained
Retained Earnings(2)(2)
Statements
Earnings

2.

(Thousands of yen)
41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)

Operating revenue
Rent revenue-real estate
Gain on sale of real estate*1*2

17,019,663
1,338,228

42nd Fiscal Period(Jul. 1, 2022 – Dec. 31, 2022)*1*2

18,357,892

Total operating revenue
Operating expenses
Expenses related to rent business
Loss on exchange of real estate
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses*1

7,946,916－
802,633
83,0546,300
17,361
158,329
9,014,594

17,392,648
1,347,213
18,739,862*1*3

8,199,445
210,929
792,966
84,6486,300
15,608
156,754
9,466,653

9,343,297

9,273,209

192
39,536
1,449
2,387

175
4,279
2,979
1,110

43,5658,544

510,215
38,869200,124
14,672
14,727284
778,893

529,585
50,670202,105
14,915
14,344284
811,905

8,607,969
8,607,969

8,469,847

Income taxes-current

605

605

Total income taxes
Net income

605

605
8,469,242

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

8,607,364
7,569
8,614,933

Retained earnings brought forward
Unappropriated retained earnings

33

8,469,847

6,929
8,476,1713

Financial Statements

Japan Prime Realty Investment Corporation(3)(3)
Statements
Unitholders’Equity
EquityStatementsof
ofChanges
Changes inin Unitholders’3.

(Thousands of yen)
41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)

42nd Fiscal Period(Jul. 1, 2022 – Dec. 31, 2022)

Balance at beginning of current period

247,860,796

261,751,240

Changes of items during the period
Issuance of units

13,890,444

Unitholders' equity
Unitholders' capital

13,890,444－

261,751,240

261,751,240

Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry

1,887,437

2,546,454

659,017830,016

Total changes of items during the period

659,017830,016

2,546,454

3,376,470

7,901,374

8,614,933

Provision of reserve for reduction entry
Dividends from surplus(659,017)(7,234,787)(830,016)(7,777,988)

Net income

8,607,364

8,469,242

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

Balance at end of current period
Unappropriated retained earnings
Balance at beginning of current period
Changes of items during the period

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

713,559(138,761)

8,614,933

8,476,171

9,788,811

11,161,388

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

Dividends from surplus(7,234,787)(7,777,988)

Net income

8,607,364

8,469,242

Total changes of items during the period

1,372,576

691,254

Balance at end of current period

11,161,388

11,852,642

Total unitholders' equity
Balance at beginning of current period

257,649,607

272,912,629

Changes of items during the period
13,890,444

Issuance of units
Provision of reserve for reduction entry－－(7,234,787)(7,777,988)

Net income

8,607,364

8,469,242

Total changes of items during the period

15,263,021

691,254

Balance at end of current period

272,912,629

273,603,883

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

257,649,607

272,912,629

Dividends from surplus

13,890,444

Issuance of units
Provision of reserve for reduction entry－－(7,234,787)(7,777,988)

Net income

8,607,364

8,469,242

Total changes of items during the period

15,263,021

691,254

272,912,629

273,603,883

Dividends from surplus

Balance at end of current period

434

Financial Statements

Japan Prime Realty Investment Corporation(4) Statements of Cash Distributions(4) Statements of Cash Distributions

4.

I.
II.
III.
IV.

Unappropriated retained earnings
Reversal of voluntary reserve
Reversal of reserve for reduction entry
Distribution amount(Distribution amount per unit)
Voluntary reserve
Provision of reserve for reduction entry

V.
Retained earnings carried forward
Method for calculating distribution amount41st Fiscal Period(Jan. 1, 2022 –Jun. 30, 2022)
8,614,933,824 yen

42nd Fiscal Period(Jul. 1, 2022 – Dec. 31, 2022)
8,476,171,884 yen－
7,777,988,400 yen(7,800 yen)

73,946,740 yen
7,728,129,500 yen(7,750 yen)

830,016,338 yen

815,777,113 yen

6,929,086 yen
Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,777,988,400 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(997,178 units) from the balance ofunappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 65-7 of the
Act on Special Measures Concerning
Taxation, while minimizing the burden tounitholders incurred by accrual of corporate
income tax, etc. Furthermore, JPR shall not
distribute cash in excess of earnings as
stipulated in Article 30 (4) of the Articles ofIncorporation.

6,212,011 yen
Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,728,129,500 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(997,178 units), from the balance ofunappropriated retained earnings after adding
the reversal of reserve for reduction entry
pursuant to Article 66-2 of the Act on Special
Measures Concerning Taxation and deducting
the provision of reserve for reduction entry
pursuant to Article 65-7 of the Act on Special
Measures Concerning Taxation, while
minimizing the burden to unitholders incurredby accrual of corporate income tax, etc.
Furthermore, JPR shall not distribute cash inexcess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

35
5

Financial Statements

Japan Prime Realty Investment Corporation(5)(5)
Statements
StatementsofofCash
CashFlows
Flows

5.

(Thousands of yen)
41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)

42nd Fiscal Period(Jul. 1, 2022 – Dec. 31, 2022)

Income before income taxes

8,607,969

8,469,847

Depreciation and amortization
Difference related to exchange of noncurrent assets
Amortization of investment corporation bond issuance costs

2,046,347－
14,672

2,055,734
1,121,208
14,915

14,727(192)

14,344(175)

Interest expenses

710,339

731,690

Decrease (increase) in operating accounts receivable(177,953)(90,504)

Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses

346,039
5,076－(4,704)

Increase (decrease) in operating accounts payable(17,856)

79,299

Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes(67,972)
368,920(10,899)(43,340)

Net cash provided by (used in) operating activities

Amortization of investment unit issuance expenses
Interest income

Increase (decrease) in advances received
Decrease in property, plant and equipment in trust due to sale(73,131)7,879

3,727,070

3,718,086

Other, net(470,497)(179,814)

Subtotal

15,033,561

15,883,569

192

175

(716,082)(602)(727,716)(602)

14,317,068

15,155,425

Purchase of property, plant and equipment(11,976,312)(590,345)

Purchase of property, plant and equipment in trust(1,125,644)(648,384)

Purchase of intangible assets
Payments of lease and guarantee deposits－(43,836)(1,081)(18,400)

Repayments of tenant leasehold and security deposits(538,677)(49,788)

Proceeds from tenant leasehold and security deposits

877,788

153,971

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(678,824)
566,303(540,221)
265,649

Net cash provided by (used in) investing activities(12,919,203)(1,428,600)

Net cash provided by (used in) financing activities
Repayment of short-term loans payable

Interest income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities(12,000,000)－

Proceeds from long-term loans payable

18,500,000

8,000,000

Repayment of long-term loans payable
Proceeds from issuance of investment units(10,500,000)
13,845,913(8,000,000)－

Dividends paid

(7,233,977)(7,777,592)

Net cash provided by (used in) financing activities

2,611,935(7,777,592)

Net increase (decrease) in cash and cash equivalents

4,009,800

5,949,232

Cash and cash equivalents at beginning of current period

35,547,423

39,557,224*1

Cash and cash equivalents at end of current period

63639,557,224*1

45,506,457

Financial Statements

Japan Prime Realty Investment Corporation

NotestotoFinancial
FinancialStatements
Statements(6)(6)
Notes

6.

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

(Significant Accounting Policies)
1. Standards and Method for Asset
Valuation

2. Depreciation/Amortization
Method for Noncurrent Assets

3. Accounting for Deferred Assets

4. Standards for Recognition of
Revenues and Expenses

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

Investment securities
Other securities
Stocks and other securities with no market prices
Stocks and other securities with no market prices are stated at cost being determined by the moving averagemethod.
(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ....................................3 - 65 years
Structures ...................................10 - 35 years
Machinery and equipment ...........3 - 17 years
Tools, furniture and fixtures ........3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years based on
the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment Unit Issuance Expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
(1) Revenue Recognition
The details of main performance obligations concerning revenue generated from contracts with customers of JPR
and the ordinary time to fulfil said performance obligations (ordinary time to recognize revenue) are as follows.
a. Sale of real estate
For the proceeds from sale of real estate, JPR recognizes revenue when the purchaser who is a customer obtains
control of the relevant real estate as a result of JPR fulfilling its delivery obligations stipulated in the transaction
contract of the real estate.
b. Utilities income
JPR recognizes utilities income upon the supply of electricity and water, etc. to the lessee who is a customer
based on the lease agreement of real estate and details of agreements incidental to it. Of the utilities income,in the case that JPR deems itself to be an agent, the net amount obtained by deducting the amount it pays toother parties from the amount it receives as charges for electricity and gas, etc. supplied by the said otherparties is recognized as revenue.
(2) Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR
uses the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses
related to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the purchase cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted
to 56,401 thousand yen for the fiscal period ended June 30, 2022. Taxes on property and equipment capitalized
amounted to 613 thousand yen for the fiscal period ended December 31, 2022.
Cash and cash equivalents in the Statements of Cash Flows include the following items:(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well
as all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the
Balance Sheets and Statements of Income and Retained Earnings.
Furthermore, the following material accounts are separately presented in the Balance Sheets for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust

37

7

Financial Statements

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Reduction Entry of Property, Plant and Equipment Acquired through Exchange(Thousands of yen)
End of 41st Fiscal Period(as of June 30, 2022)

End of 42nd Fiscal Period(as of December 31, 2022)

Land

－

1,537,018

Total

－

1,537,018

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its main lending financial institutions primarily to minimize refinancing risks
and enhance financial stability.
(Thousands of yen)
End of 41st Fiscal Period(as of June 30, 2022)
Credit limit

End of 42nd Fiscal Period(as of December 31, 2022)
24,000,000

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

24,000,000－－

24,000,000

24,000,000*3 Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 41st Fiscal Period(as of June 30, 2022)

End of 42nd Fiscal Period(as of December 31, 2022)
50,000850,00038

Financial Statements

Japan Prime Realty Investment Corporation(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

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

12,546,684
1,802,000
1,352,858

12,547,291
1,802,000
1,283,973

Parking fees
Advertising fees

278,951
36,602

286,561
37,152

Antenna usage fees
Other

28,94346,012

29,90245,24016,092,051

16,032,122

Subtotal
Other rental revenues
Incidental rent income

798,305

1,006,164

Time-based parking fees
Cancellation charges

14,092
11,173

14,19282,368

Income equivalent to expenses for restoration
to original condition

42,263

182,839

Other miscellaneous income

61,77774,960Subtotal
Total rent revenue-real estate

927,611

1,360,526

16,363,416,363,49494005,870
17,019,663

16,363,416,363,49494005,870
17,392,648

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 for Rent Business(A-B)

699,677

703,637

952,258

1,301,145

2,523,554
29,3682,507,086
30,028469,805
307,961
630,331432,326
306,930
643,099

2,045,976

2,055,273

287,982

219,918

7,946,916

8,199,445

9,072,747

9,193,203*2. Breakdown of Gain or loss on Sale of Real Estate, etc.
(Thousands of yen)
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

JPR Umeda Loft Bldg. (30.0% co-ownership interest)

Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate
JPR Umeda Loft Bldg. (30.0% co-ownership interest)
Proceeds from sale of real estate

5,250,000－

3,727,070
184,700－－

1,338,228－－

5,250,000

Cost of sale of real estate
Other expenses related to sale－－

3,718,086
184,700

Gain on sale of real estate－

1,347,213

39

9

Financial Statements

Japan Prime Realty Investment Corporation*3. Breakdown of Loss on Exchange of Real Estate(Thousands of yen)
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

Gotanda First Bldg.

Consideration for transfer of real estate
Cost of transfer of real estate
Other expenses related to transfer
Reduction of noncurrent assets
Loss on exchange of real estate－

4,270,000－

2,921,061－

22,850－1,537,018－

210,929

41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)(Notes to Statements of Changes in Unitholders’ Equity)

Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

5,000,000 units

5,000,000 units

997,178 units

997,178 units(Notes to Statements of Cash Flows)*1. Reconciliation of the Amounts of the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows with theAmounts of the Corresponding Accounts on the Balance Sheets(Thousands of yen)
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

Cash and deposits

26,708,733

33,127,007

Cash and deposits in trust

12,848,490

12,379,450

Cash and cash equivalents

39,557,224

45,506,457(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)
41st Fiscal Period(as of June 30, 2022)

42nd Fiscal Period(as of December 31, 2022)

Due within one year

6,118,824

6,035,590

Due after one year

14,579,171

15,749,566

Total

20,697,995

21,785,156(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy for Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of short-term
funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.

10

40

Financial Statements

Japan Prime Realty Investment Corporation(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but the liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby the financial division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
Certain assumptions are used in calculating the fair value of financial instruments, and there can be cases where the values may vary
based on different assumptions.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the book values and fair values as of June 30, 2022 of financial instruments, and the difference between theseamounts. Furthermore, notes on “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are omitted asthese are settled with cash and within a short period of time and thus the book value approximates the fair value. Notes on“Investment securities,” “Tenant leasehold and security deposits” and “Tenant leasehold and security deposits in trust” are also
omitted as they lack materiality.
(Thousands of yen)Book Value(Note 1)

Fair Value(Note 1)

Difference(1)

Current portion of investment corporation bonds(2,000,000)(2,021,000)

21,000(2)

Current portion of long-term loans payable(16,000,000)(16,061,296)

61,296(3)

Investment corporation bonds(35,900,000)(36,269,932)

369,932(4)

Long-term loans payable(149,000,000)(148,909,766)-90,233

The following are the book values and fair values as of December 31, 2022 of financial instruments, and the difference between theseamounts. Furthermore, notes on “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are omitted as theseare settled with cash and within a short period of time and thus the book value approximates the fair value. Notes on “Investment
securities,” “Tenant leasehold and security deposits” and “Tenant leasehold and security deposits in trust” are also omitted as they lackmateriality.
(Thousands of yen)Book Value(Note 1)

Fair Value(Note 1)

Difference(1)

Current portion of investment corporation bonds(2,000,000)(2,009,200)

9,200

(2)

Current portion of long-term loans payable(21,000,000)(21,063,847)

63,847(3)

Investment corporation bonds(35,900,000)(35,526,389)-373,610(4)Long-term loans payable(144,000,000)(141,695,800)-2,304,199(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are measured based on market price and those with no market price are calculated inaccordance with (2) and (4) below.
(2) Current portion of long-term loans payable and (4) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount of principal and interests are
discounted by the rate assumed as being applicable in the event of a new drawdown whose term is corresponding to the remaining loan term.

41

11

Financial Statements

Japan Prime Realty Investment Corporation(Note 3) Amount of repayment of long-term loans payable or redemption of investment corporation bonds scheduled to be due subsequent to the 41st fiscal period end (June30, 2022)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Investment corporation bonds

2,000,000

5,000,000

3,000,000－

8,500,000

19,400,000

Long-term loans payable

16,000,000

20,000,000

21,000,000

20,900,000

13,000,000

74,100,000

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment of long-term loans payable or redemption of investment corporation bonds scheduled to be due subsequent to the 42nd fiscal period end(December 31, 2022)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Investment corporation bonds

2,000,000

8,000,000－

8,500,000－

19,400,000

Long-term loans payable

21,000,000

15,000,000

23,900,000

14,000,000

18,000,000

73,100,000

Due after FourYears throughFive Years

Due after Five
Years

(Securities)
41st fiscal period (as of June 30, 2022)
Not applicable
42nd fiscal period (as of December 31, 2022)
Not applicable(Derivative Transactions)
41st fiscal period (as of June 30, 2022)
Not applicable as JPR entered into no derivative transactions
42nd fiscal period (as of December 31, 2022)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
41st fiscal period (as of June 30, 2022)
Not applicable as JPR does not have any retirement benefit plans
42nd fiscal period (as of December 31, 2022)
Not applicable as JPR does not have any retirement benefit plans(Tax Effect Accounting)
1. Breakdown of Main Items that Caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

31.46%

31.46%

Deductible cash distributions(28.43%)(28.70%)Other(3.02%)(2.75%)

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Effective statutory tax rate
(Adjustment)(Equity Method Income and Retained Earnings)
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable as JPR does not have any affiliated companies
42nd fiscal period (July 1, 2022 – December 31, 2022)
Not applicable as JPR does not have any affiliated companies

1242

Financial Statements

Japan Prime Realty Investment Corporation(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
42nd fiscal period (July 1, 2022 – December 31, 2022)
Not applicable
2. Affiliated Companies
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
42nd fiscal period (July 1, 2022 – December 31, 2022)
Not applicable
3. Sister Companies
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
42nd fiscal period (July 1, 2022 – December 31, 2022)
Not applicable
4. Directors and Major Individual Unitholders
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
42nd fiscal period (July 1, 2022 – December 31, 2022)
Not applicable(Asset Retirement Obligations)
41st fiscal period (January 1, 2022 – June 30, 2022)
Not applicable
42nd fiscal period (July 1, 2022 – December 31, 2022)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rent business.
[Related Information]
41st fiscal period (January 1, 2022 – June 30, 2022)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit are in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan is in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer account for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.

43

13

Financial Statements

Japan Prime Realty Investment Corporation

42nd fiscal period (July 1, 2022 – December 31, 2022)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit are in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan is in excess of 90% of total
property, plant and equipment on the Balance Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer account for less than 10% of the operating revenue on the Statementsof Income and Retained Earnings.

(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban multi-use facilities forleasing in Tokyo and other regions. The following is the book value on the Balance Sheets, amount of increase (decrease) during
the period and fair value of these investment and rental properties.
(Thousands of yen)Book Value on the Balance Sheets
Balance at Beginning of Period

41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

458,014,900

465,129,001

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

7,114,101(5,347,296)

465,129,001
593,184,000

459,781,704
587,035,000(Note 1) The book value on the Balance Sheets is the cost of acquisition less accumulated depreciation.
(Note 2) For the 41st fiscal period, the amount of increase is primarily attributable to the acquisition of Tokyo Tatemono Higashi Shibuya Bldg. (11,463,589 thousand yen),and the amount of decrease is primarily attributable to the sale of JPR Umeda Loft Bldg. (30.0% co-ownership interest) (3,727,070 thousand yen) and depreciation(2,045,976 thousand yen). For the 42nd fiscal period, the amount of increase is primarily attributable to the additional acquisition of Shinjuku Center Bldg.
(1,838,124 thousand yen), and the amount of decrease is primarily attributable to the sale of Gotanda First Bldg. (2,921,061 thousand yen), the sale of JPR Umeda
Loft Bldg. (30.0% co-ownership interest) (3,718,086 thousand yen) and depreciation (2,055,273 thousand yen).
(Note 3) The fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 41st and 42nd fiscal periods for investment and rental properties is as presented in the “Notes to Statementsof Income and Retained Earnings.”(Revenue Recognition)
41st fiscal period (January 1, 2022 – June 30, 2022)
Breakdown information on revenue from contracts with customers

Sale of real estate
Utilities income (Note 3)(Thousands of yen)

Revenue from Contracts with Customers(Note 1)
5,250,000

Sales to External Customers(Note 2)
1,338,228

798,305

798,305

Others－

16,221,358

Total

6,048,305

18,357,892(Note 1) Rent revenue subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from “Revenue from contracts with customers”
as such revenue is out of the scope of Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents proceeds fromsale of real estate and utilities income.
(Note 2) As sale of real estate is recorded as gain or loss on sale of real estate, etc. in the Statements of Income and Retained Earnings, the amount obtained by deducting
cost of sale of real estate and other expenses related to sale from proceeds from sale of real estate is indicated for sales to external customers. Furthermore, as JPR
records gain on sale of real estate for operating revenue while recording loss on sale of real estate for operating expenses, the table above indicates the amount ofgain on sale of real estate only.
(Note 3) Utilities income indicates the amount recorded as revenue upon the supply of electricity and water, etc. to the lessee who is a customer based on the lease agreementof real estate and agreements incidental to it.

1444

Financial Statements

Japan Prime Realty Investment Corporation

42nd fiscal period (July 1, 2022 – December 31, 2022)
Breakdown information on revenue from contracts with customers(Thousands of yen)

Revenue from Contracts with Customers(Note 1)
9,520,000

Sale of real estate
Utilities income (Note 3)
Others
Total

Sales to External Customers(Note 2)
1,347,213

1,006,164

1,006,164－
10,526,164

16,386,483
18,739,862(Note 1) Rent revenue subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) is excluded from “Revenue from contracts with customers” assuch revenue is out of the scope of Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents proceeds from saleof real estate and utilities income.
(Note 2) As sale of real estate is recorded as gain or loss on sale of real estate, etc. in the Statements of Income and Retained Earnings, the amount obtained by deducting
cost of sale of real estate and other expenses related to sale from proceeds from sale of real estate is indicated for sales to external customers. Furthermore, as JPR
records gain on sale of real estate in operating revenue while recording loss on sale of real estate in operating expenses, the table above indicates the amount ofgain on sale of real estate only.
(Note 3) Utilities income indicates the amount recorded as revenue upon the supply of electricity and water, etc. to the lessee who is a customer based on the lease agreementof real estate and agreements incidental to it.

(Per Unit Information)
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

273,684 yen

274,378 yen

8,664 yen

8,493 yen

Total net assets per unit
Net income per unit

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

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

41st Fiscal Period(January 1, 2022 – June 30, 2022)
8,607,364－

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

42nd Fiscal Period(July 1, 2022 – December 31, 2022)
8,469,242－

8,607,364

8,469,242

993,389 units

997,178 units(Subsequent Events)

Property Sale
JPR concluded a sale agreement regarding the following property on February 17, 2023.

< JPR Crest Takebashi Bldg.>
Asset type:
Sale price:
Delivery date:
Buyer:
Impact on operating results:

Beneficiary interest
4,169 million yen
April 12, 2023 (scheduled)
Yasuda Real Estate Co., Ltd.
JPR plans to record approximately 881 million yen in gain on sale of real estate as operating
revenue for the 43rd fiscal period (January 1, 2023 – June 30, 2023).

45

15

Financial Statements

Japan Prime Realty Investment Corporation

DetailedSchedules
Schedules(7)(7)
Detailed7.1) Schedule of Securities
a. Stock

Issuer Name

Number of
SharesUnit Price(thousands ofyen)

Amount(thousandsof yen)Unit Price(thousandsof yen)Amount(thousands ofyen)Profit andLoss from
Valuation(thousands ofyen)

KMO Corporation

1,666

50

83,74050

83,740

－

－

Total

1,666

－

83,740－83,740－－Acquisition Price (Note 1)

Appraisal Value (Note 2)

Remarks(Note 1) The acquisition price indicates the amount that includes the expenses required for the acquisition.
(Note 2) The appraisal value indicates the book value.

b. Other securities
Type of Asset

Issuer Name

Claim for refundof funds

Knowledge Capital,a general
incorporated
association

Book Value(thousandsof yen)AccruedInterest(thousandsof yen)Prepaidinterest
accrued(thousands ofyen)

Appraisal
Value(thousands ofyen) (Note)

Profit andLoss from
Valuation(thousands of
yen)

－

5,120

－

－

5,120

－

－

－

5,120

－

－

5,120

－

－

Total
Face
Value

Total
(Note) The appraisal value indicates the book value.

2) Status of Contract Amounts, etc. and Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable

16

46

RemarksFinancial Statements

Japan Prime Realty Investment Corporation

3) Schedule of Assets Related to Real Estate

Asset TypeAccumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
July 1, 2022
the Period
the Period
during the2022
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

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

Net Balance as ofDecember 31, 2022
(thousands of yen)

－

－

－

－

－

－

－

68,379,448

1,127,288－

69,506,736

23,785,420

883,182

45,721,315

88,8295,272－

94,101

38,9682,355

55,133

834,144188－

834,332

582,683

17,240251,649

215,5162,276－

217,792

119,029

10,46098,763

139,394,811

3,101,396

1,537,018

140,959,190－－

140,959,190

2,583

8,245

868

9,960

－

－

9,960

208,915,332

4,244,667

1,537,886

211,622,113

24,526,101

913,238

187,096,012

98,413,791

606,5822,826,324

96,194,049

38,559,767

1,099,856

57,634,282

127,940

2,020

1,688

128,272

81,8972,136

46,3742,017,750

20,426

41,862

1,996,314

1,544,705

29,490451,608

295,521

12,878

3,983

304,416

202,50910,505

101,906

207,559,589－

4,951,492

202,608,096－－

202,608,096

42,610450

2,015

41,045－－41,045

308,457,202

642,358

7,827,365

301,272,194

40,388,880

1,141,988

260,883,314

Total

517,372,534

4,887,025

9,365,251

512,894,308

64,914,981

2,055,226

447,979,326

Intangible Assets
Leasehold
right
Other

11,801,831－－

11,801,831－－

11,801,831

6,465

－

－

6,465

4,001

507

2,463

Total

11,808,296－－

11,808,296

4,001

507

11,804,294

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

4) Schedule of Other Specified Assets
VolumeUnit Price(thousandsof yen)Amount(thousandsof yen)Unit Price(thousandsof yen)Amount(thousands ofyen)Profit andLoss from
Valuation(thousands of
yen)

1

－

710

－

710

－

－

1

－

710

－

710

－

－

Book Value
Type of Asset

Issuer Name

Claim for refund of funds

GRAND FRONTOSAKA TMO,
a general incorporated
association

Total

Appraisal Value (Note)

Remarks(Note) The appraisal value indicates the book value.

47

17

Financial Statements

Japan Prime Realty Investment Corporation

5) Schedule of Investment Corporation Bonds

Decreaseduring the
Period(thousands ofyen)

Balance as ofDecember 31, Coupon
2022
Rate
Maturity Date(thousands of
(%)
yen)

Name

Issue Date

Balance as ofJuly 1, 2022
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000－

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

Twenty-third Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2018

3,000,000－

3,000,000

0.550

May 31, 2028

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

Jul. 31, 2019

5,000,000－

5,000,000

0.570

Jul. 31, 2029

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

Nov. 26, 2020

6,000,000－

6,000,000

0.510

Nov. 26, 2030

Twenty-sixth Series ofInvestment Corporation
Bonds (Note 1)

Mar. 16, 2021

3,000,000－

3,000,000

0.760

Mar. 14, 2036

Twenty-seventh Series ofInvestment Corporation
Bonds (Sustainability
Bonds) (Note 1)

Dec. 7, 2021

1,400,000－

1,400,000

0.420

Dec. 5, 2031

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

Dec. 7, 2021

1,000,000－

1,000,000

0.670

Dec. 5, 2036

37,900,000－

37,900,000

Total

Use

Security(Note 2)

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

Investment corporation
bonds

18

2,000,000

8,000,000

48－

8,500,000－

Financial Statements

6) Schedule of Loans Payable
LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current2022
2022
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

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

5,000,000－－

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank, Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

Mizuho Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

0.646%

Dec. 5, 2029

Mizuho Bank, Ltd.

3,000,000－－

3,000,000

0.675%

Mar. 31, 2031

Mizuho Bank, Ltd.

2,400,000－－

2,400,000

0.675%

Mar. 30, 2032

Mizuho Bank, Ltd. (Green Loan)

1,000,000－－

1,000,000

0.675%

Mar. 30, 2032

600,000－－

600,000

0.675%

Mar. 30, 2032

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.873%

Aug. 31, 2023

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

MUFG Bank, Ltd.

2,000,000－－

2,000,000

0.633%

Dec. 13, 2024

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.638%

Aug. 8, 2025

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.600%

Aug. 29, 2025

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.593%

Sep. 5, 2025

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.450%

Jun. 23, 2028

Sumitomo Mitsui Banking Corporation

1,000,000－－

1,000,000

0.245%

Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

3,000,000－－

3,000,000

0.300%

Jun. 26, 2025

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.450%

Mar. 30, 2028

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

0.675%

Mar. 30, 2032

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.600%

Mar. 28, 2031

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.525%

Mar. 29, 2030

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

0.698%

Jun. 27, 2029

Development Bank of Japan Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14, 2027

Development Bank of Japan Inc.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Development Bank of Japan Inc.

2,100,000－－

2,100,000

0.572%

Jun. 27, 2029

Development Bank of Japan Inc.

800,000－－

800,000

0.600%

Jun. 25, 2030

Development Bank of Japan Inc.

2,000,000－－

2,000,000

0.600%

Dec. 3, 2030

SBI Shinsei Bank, Limited (Note 5)

2,000,000－－

2,000,000

1.134%

Dec. 5, 2024

SBI Shinsei Bank, Limited (Note 5)

1,000,000－－

1,000,000

0.843%

Jun. 14, 2027

SBI Shinsei Bank, Limited (Note 5)5,000,000－－

5,000,000

0.673%

Apr. 5, 2029

SBI Shinsei Bank, Limited (Note 5)

1,000,000－－

1,000,000

0.675%

Sep. 24, 2030
Sep. 25, 2028

Mizuho Bank, Ltd. (Sustainability Loan)

SBI Shinsei Bank, Limited (Note 5)

1,000,000－－

1,000,000

0.525%

Shinkin Central Bank

3,000,000－－

3,000,000

0.663%

Jun. 4, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.447%

Dec. 27, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.525%

Dec. 14, 2029

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.405%

Jun. 25, 2027

The Norinchukin Bank

2,000,000－－

2,000,000

0.525%

Dec. 25, 2028

The Norinchukin Bank

2,000,000－－

2,000,000

0.525%

Dec. 14, 2029

Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

0.586%

Feb. 4, 2030

Mizuho Trust & Banking Co., Ltd.

2,000,000－－

2,000,000

0.606%

Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2030

2,000,000－－

2,000,000

0.675%

Aozora Bank, Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank, Ltd.

2,000,000－－

2,000,000

0.553%

Feb. 25, 2025

Aozora Bank, Ltd.

500,000－－

500,000

0.525%

Sep. 25, 2028

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.525%

Apr. 5, 2030

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.480%

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.554%

Sep. 21, 2029

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

49

(Note 4)

Unsecured/
Unguaranteed

19

Financial Statements

LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current2022
2022
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Long-Term Loans Payable (Note 1)
Meiji Yasuda Life Insurance Company

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

3,200,000－－

3,200,000

0.813%

Jun. 21, 2028

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.583%

Jul. 20, 2029

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Shinkumi Federation Bank

4,000,000－

4,000,000－

0.404%

Aug. 5, 2022

The Shinkumi Federation Bank－

4,000,000－

4,000,000

0.358%

Aug. 5, 2027

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.525%

Dec. 14, 2029

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sep. 24, 2024

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.811%

Jun. 5, 2028

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.675%

Dec. 24, 2030

The Chugoku Bank, Ltd.

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.661%

Mar. 25, 2026

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.675%

Mar. 30, 2032

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.816%

Oct. 6, 2023

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Kiyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Kiyo Bank, Ltd.

1,000,000－－

1,000,000

0.675%

Mar. 30, 2032

Sompo Japan Insurance Inc.

2,000,000－－

2,000,000

0.759%

Dec. 25, 2023

Nippon Life Insurance Company

2,000,000－－

2,000,000

0.225%

Nov. 22, 2023

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.300%

Oct. 9, 2025

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.310%

Sep. 24, 2026

The Yamanashi Chuo Bank, Ltd.

1,000,000－－

1,000,000

0.600%

Apr. 30, 2030

The Yamanashi Chuo Bank, Ltd.

1,000,000－－

1,000,000

0.600%

Apr. 5, 2032

Resona Bank, Ltd.

2,000,000－

2,000,000－

0.438%

Sep. 30, 2022

Resona Bank, Ltd.

－2,000,000－

2,000,000

0.888%

Sep. 30, 2031

NTT TC Leasing Co., Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

Kansai Mirai Bank, Limited

1,000,000－－

1,000,000

0.600%

Mar. 30, 2032

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.408%

May 31, 2023

Daishi Hokuetsu Bank, Ltd.

1,000,000－

1,000,000－

0.396%

Nov. 21, 2022

Daishi Hokuetsu Bank, Ltd.

－

1,000,000－

1,000,000

0.566%

Nov. 21, 2028

Daido Life Insurance Company

1,000,000－－

1,000,000

0.316%

Dec. 25, 2023

The Chiba Bank, Ltd.

1,000,000－－

1,000,000

0.449%

Oct. 25, 2023

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000－－

1,000,000

0.299%

Jun. 27, 2023

The Hyakugo Bank, Ltd.

1,000,000－－

1,000,000

0.582%

Apr. 25, 2025

The Hiroshima Bank, Ltd.

1,000,000－

1,000,000－

0.396%

Nov. 21, 2022

The Hiroshima Bank, Ltd.

－

1,000,000－

1,000,000

0.566%

Nov. 21, 2028

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

1,000,000

0.310%

Oct. 2, 2026

Sumitomo Mitsui Trust Bank Limited

1,000,000－－

1,000,000

0.691%

Mar. 25, 2026

500,000－－

500,000

0.600%

Mar. 30, 2032

165,000,000

8,000,000

8,000,000

165,000,000

Bank of Kyoto, Ltd.
Total

(Note 1) Amounts of long-term loans payable to be repaid within five years after the date of the Balance Sheets are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable

21,000,000

15,000,000

23,900,000

14,000,000(Note 4)

Unsecured/
Unguaranteed

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

18,000,000(Note 2) The interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
(Note 3) Long-term loans payable are fixed-rate loans payable.
(Note 4) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redeeming
investment corporation bonds, etc.
(Note 5) The bank changed its name from Shinsei Bank, Ltd. to SBI Shinsei Bank, Limited as of January 4, 2023.

20

50

Financial Statements

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

The Board of Directors
Japan Prime Realty Investment Corporation
OpinionWe have audited the accompanying financial statements of Japan Prime Realty Investment Corporation(theCompany), which comprise the balance sheets as at December 31, 2022, and the statements of income andretained earnings, changes in unitholders’ equity, cash distributions, and cash flows for the six-month
period then ended and notes to financial statements, all expressed in Japanese yen.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 2022, and its financial performance and its cash flows for thesix-month period then ended in accordance with accounting principles generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Financial Statements section of our report. We are independent of the Company in accordance withthe ethical requirements that are relevant to our audit of the financial statements in Japan, and we havefulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information
The other information comprises the information included in the Semi-Annual Report that contains
audited financial statements but does not include the financial statements and our auditor’s report
thereon. Management is responsible for preparation and disclosure of the other information. The
Supervising Officer is responsible for overseeing the Company’s reporting process of the otherinformation.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and Supervising Officer for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.
51

Financial Statements

Japan Prime Realty Investment Corporation

In preparing the financial statements, management is responsible for assessing the Company’s ability tocontinue as a going concern and disclosing, as required by accounting principles generally accepted inJapan, matters related to going concern.
The Supervising Officer is responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances for our risk assessments, while the purpose of the audit of the financial
statements is not expressing an opinion on the effectiveness of the Company’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
・ Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events ina manner that achieves fair presentation in accordance with accounting principles generally acceptedin Japan.
We communicate with the Executive Officer regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the Executive Officer with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the financial statements in Japan,
and to communicate with them all relationships and other matters that may reasonably be thought to bearon our independence, and where applicable, related safeguards.

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
52

Financial Statements

Japan Prime Realty Investment Corporation

Ernst & Young ShinNihon LLC
Tokyo, Japan
March 23, 2023

向 出 勇 治Yuji Mukaide
Designated Engagement Partner
Certified Public Accountant

海 上 大 介Daisuke Unagami
Designated Engagement Partner
Certified Public Accountant

53

Financial Statements

Japan Prime Realty Investment Corporation

OtherNotes
Notes(Information(Information only)
only)(9)(9)
Other

9.

(Property and Equipment Leased to JPR)
41st Fiscal Period(January 1, 2022 – June 30, 2022)

42nd Fiscal Period(July 1, 2022 – December 31, 2022)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
41st fiscal period (January 1, 2022 – June 30, 2022)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Transactions

Transaction
Amount(thousands ofyen)Interested
party

Tokyo
TatemonoCo., Ltd.

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

Real estatebusiness

2.93%

Purchase ofreal estate

11,300,000

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business－Borrowing of
long-term loans
payableInterest
expenses(Note) Transaction terms are determined based on prevailing market conditions.

－21,422

Account－
Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)－
7,000,000
355

42nd fiscal period (July 1, 2022 – December 31, 2022)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Interested
party

Tokyo
TatemonoCo., Ltd.

Real estatebusiness

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

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

Transaction
Amount(thousands ofyen)

Purchase ofreal estate

3,320,000－－

4,270,000－－

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

2.93%－(Note) Transaction terms are determined based on prevailing market conditions.

22

Transactions

54－
21,777

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
473