32nd
Report on Operating and Management Results
Thirty-Second Fiscal Period Semi-Annual Report
July 1, 2017 – December 31, 2017

Japan Prime Realty Investment Corporation

Kanematsu Bldg.

Determined Cash Distribution
The 32nd fiscal period ended December 2017

¥7,223
Forecast Cash Distribution (reference)
The 33rd fiscal period ending June 2018

¥7,220Contents
JPR at a Glance

1

Message to Our Unitholders

2

Account Highlights

3

Internal Growth Strategy

4

External Growth Strategy

5

Financial Strategy

6

Initiatives on Governance7

Initiatives on Sustainability

8

Portfolio Status

10

Overview of Portfolio Properties

12

Structure and History of JPR

28

Overview of Asset Manager

29

Asset Management Report

30

Financial Statements

50(1) Balance Sheets

50(2) Statements of Income andRetained Earnings

52(3) Statements of Changes inUnitholders’ Equity

53(4) Statements of Cash Distributions

54(5) Statements of Cash Flows55(6) Notes to Financial Statements

56(7) Detailed Schedules

66(8) Independent Auditor’s Report70(9) Other Notes (Information only)

71

Investor Information

72

FUNDES Suidobashi

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

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

No. of Properties and Size

62 properties 435.0 billion yen
Investment Ratio by Area
Tokyo:

84.5% Other Cities: 15.5%
Investment Ratio by Asset Class

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

76.8%

Retail:23.2%

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

40.6%
Ratio of Long-Term, Fixed Interest Rate Debts

100.0%
Issuer Rating

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

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

A (S&P)

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

343.3 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

Yakuin Business Garden

1Message to Our Unitholders

Satoshi Okubo

Yoshihiro Jozaki

Executive Officer
Japan Prime Realty Investment Corporation

President and Chief Executive Officer (CEO)Tokyo Realty Investment Management, Inc.

Dear Unitholders,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 32nd fiscal period (July1, 2017 –December 31, 2017) at the end of December
2017, we renew our cordial appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize our stable growth over the medium tolong term while taking into account the governance of JPR as an investment corporation.
We ask you, our unitholders, to extend us continued support of our operations.

Financial Results of the 32nd Fiscal Period Ended December 2017❚❚ Cash distribution per unit: ¥7,223(up ¥10 period-on-period)❚❚ Achieved a period-on-period increase in cash
distributions for the eighth straightfiscal periods❚❚ Forecast distribution per unit for the next
fiscal period: ¥7,220(33rd fiscal period ending June 2018)2

For the 32nd fiscal period, JPR continued to generate goodfinancial results thanks to an increase in revenues from
Tokyo Square Garden, which we acquired in the 31st fiscal
period, operating for the entire fiscal period, as well as aprogress made in upward revision of rents upon contract
renewal, among other factors.
Distribution per unit came to 7,223 yen, marking the eighth
straight fiscal period with a period-on-period increase.
For the 33rd fiscal period ending June 2018, distribution perunit is forecast to be 7,220 yen, almost the same level as forthe 32nd fiscal period, despite a projected increase inproperty taxes and city planning taxes and other expenses.

Japan Prime Realty Investment Corporation

Account Highlights
Distribution per Unit(yen/unit)

Forecast cash distribution

Determined cash distribution

Determined cash distribution (current (32nd) fiscal period)

Forecast cash distribution (next (33rd) fiscal period)

7,500

7,213
7,048
7,000

6,756
6,588
6,500

6,419

7,223

(Forecast)

7,220

7,220

7,140

7,000

6,630

6,510

6,360
6,000

5,500

0
27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)

32nd Period(Dec. 2017)

33rd Period(Jun. 2018)

30th Period
ended
Dec. 2016

31st Period
ended
Jun. 2017

32nd Period
ended
Dec. 2017

Operating Results
27th Period
ended
Jun. 2015

28th Period
ended
Dec. 2015

29th Period
ended
Jun. 2016

Operating revenue(million yen)

14,251

14,105

14,246

15,105

15,11815,141

Ordinary income(million yen)

5,566

5,746

5,897

6,153

6,868

6,666

Net income(million yen)

5,603

5,749

5,896

6,152

6,867

6,665

Unitholders’ equity per
unit
(yen)

247,529

247,696

247,862

248,154258,516

258,5253

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

Major Reinforcement Strategies
1. Flexibly use target rents

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

2. R einforce investments forvalue enhancement

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

3. C ontinuously enhancetenant satisfaction

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

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
has remained at a high level.

(%)

Entire portfolio

100
99.6
98

97.2

Office properties

99.8

100.0

97.5

97.4

99.9
97.8

Retail properties
100.0
98.3

97.5

99.7

100.0
98.5

98.4

97.8

97.8

31st Period(Jun. 2017)

32nd Period(Dec. 2017)

96.8

96
95.9

96.2

96.1

27th Period(Jun. 2015)

28th Period(Dec. 2015)

94

92

0

26th Period(Dec. 2014)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

Changes in Revised Amount of Monthly Rent, Etc.
By amount, upward revision of rents
has continued to surpass downward
revision since the 26th fiscal period
ended December 2014.

(million yen)

20

Upward revision

Downward revision

+15.3

+14.6
+10.4

10

+10.9

+10.0

+6.0

+5.9

0
-0.9

-1.3

-0.4
-2.8

-4.7

-5.8

-3.9

-10

-20

4

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)

32nd Period(Dec. 2017)

Japan Prime Realty Investment Corporation

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

Basic Strategy
1. Focused investments inoffice properties in Tokyo

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

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

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

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

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

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

FUNDES Suidobashi

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

FUNDES Suidobashi was acquired from
Tokyo Tatemono.

Tokyo Tatemono
Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance■■ Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its sponsors, etc. andthat of properties acquired from third parties (total of properties
acquired based on the information provided by the sponsors andthose acquired other than from the sponsors, etc.) are almost equal,
standing at 49.9% for the former and 50.1% for the latter (on an
acquisition price basis).
JPR will work to increase property acquisition opportunities andconduct vigorously selective investments in blue-chip properties bybuilding sourcing abilities on its own instead of depending solely on
sponsor support.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Transactions withthird parties

50.1%

Properties acquired
other than fromsponsors, etc.

27.5% Properties
acquired fromsponsors, etc.

22.6% 49.9%

Properties acquired
based on information
provided by sponsors

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

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 32nd fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

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

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

40.6%

AA- (Stable)

Ratio of long-term, fixed interest rate debts

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

100.0%

Long-term:A (Stable)

Short-term:

A-1

Financing Status for the 32nd Fiscal Period
JPR has successfully reduced debt cost while placing more emphasis on lengthening the maturity of procured debts
and diversifying the repayment dates.
Comparison of Debts Matured andNew Debts Procured in the 32nd
PeriodAverage maturity

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

1.6

5.2 years ➤ 7.9 years

Average maturity (right axis)

1.44
1.27

(up 2.7 years)

1.2

Average debt cost

0.8

0.91% ➤ 0.61%

0.4

1.21

(years)Average debt cost (left axis)

1.19

1.16

1.10

1.03

8.0

6.0

0.96

4.0
3.8
years

3.9
years

4.0
years

4.2
years

4.0
years

4.2
years

4.3
years

4.6
years

2.0

(down 0.31%)

0.0

25th Period 26th Period 27th Period 28th Period 29th Period 30th Period 31st Period 32nd Period(Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017) (Dec. 2017)

0.0

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

Investment corporation bonds

Long-term loans payable

20

15

10

13.05

0

5.0

4.0

2.0
8.3

8.1

9.1

8.0

10.0

11.0

9.8

10.0

10.5

33rd
Period34th
Period35th
Period36th
Period37th
Period38th
Period39th
Period40th
Period41st
Period

2.0

4.0

5.0

42nd
Period43rd
Period

5.0

3.0

8.0

7.0

8.0

7.0

9.9

9.0

44th
Period45th
Period46th
Period47th
Period48th
Period49th
Period

8.5

2.0

4.0

3.0

50th
Period51st
Period52nd
Period(Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2020) (Jun. 2021) (Dec. 2021) (Jun. 2022) (Dec. 2022) (Jun. 2023) (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) (Dec. 2026) (Jun. 2027) (Dec. 2027)

6

Japan Prime Realty Investment Corporation

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.

Board Composition that Secures Governance❚❚ At JPR, the Executive Officer has no concurrent
assignment as director of TRIM in consideration of
securing the independence of the investment corporation.
❚❚ The JPR officers have sufficient experience in practicaloperations and have a thorough knowledge of the
REIT industry. The Supervising Officers are an
attorney and a public accountant, securing theeffectiveness of their monitoring function on thebusiness operations of the investment corporation.

Member of the Board of JPR

Executive Officer:

Satoshi Okubo

Supervising Officer: Masato Denawa (attorney)
Supervising Officer: Nobuhisa Kusanagi(certified public accountant)

Merits of Having Diversified Sponsors and Monitoring of Operations❚❚ The five sponsors that are active in the respective areas
provide properties, human resources, information andother support by taking advantage of their respective
strengths.
❚❚ Each sponsor exercises its monitoring function, from avariety of perspectives, on the business operations of
the investment corporation.
❚❚ The Compliance Office general manager that is the headof the department in charge of internal control at TRIM
is not seconded from any of the sponsor companies.

Shareholder Composition of TRIM
Real estate
Real estate
Yasuda Real Estate

Shareholding ratio:

Tokyo Tatemono

Shareholding ratio:

52%

18%

Construction
Taisei Corporation

Shareholding ratio:

10%

FinanceFinance

Meiji Yasuda Life Insurance

Sompo Japan Nipponkoa Insurance Inc.

Shareholding ratio:

10%(Asset Manager)
Tokyo Realty Investment
Management, Inc.

10%

Shareholding ratio:

Decision Making Based on Stringent Processes❚❚ Upon making decisions on property acquisitions, asset
management and other issues, TRIM conducts
stringent screening and takes other procedures fromvarious perspectives through designated committees
and other institutions.
❚❚ In particular, material transaction matters conductedwith the sponsors, etc. are screened and verified by theCompliance Committee as to their adequacy andrationality. The Committee employs a unanimous votefor approvals in principle.
❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.

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

Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Members of the Compliance Committee of TRIM

Final decision on Acquisition

President and CEO

Decision making on acquisition
over certain amountCorporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager

Special member (outside attorney)

Conclude agreement

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

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

7

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

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

1. I nvesting in eco-friendly
properties

Prior to finalizing an agreement to purchase real estate, an inspection is always
conducted by an expert to verify legal compliance. JPR also conducts an inspection inadvance to check for the presence of soil contamination or specified hazardous
substances such as asbestos, in order to identify and avoid properties which are a risk interms of their impact on the natural environment.

2. M
 anaging energy-saving
and reducing CO 2
emissions

At JPR, social responsibility towards climate change is increasing with the expansionof asset size. Therefore, JPR is taking steps to upgrade to more energy-efficientequipment and improve the operation of facilities while also organizing activities to
educate tenants.

3. E
 nvironment-related data

In addition to pursuing environmental and energy-saving measures, JPR periodicallymeasures greenhouse gas emissions and publicizes the obtained data.

Changes in Energy Usage Amount andConsumption Rate

Changes in CO2 Emission andConsumption Rate

Consumption rate (right axis)

Consumption rate (right axis)

Energy usage consumption (left axis)(KL)

20,000

21.99

21.54

(KL/m2)

8,000

8,126

8,080

4,000
0

2014

2015

35

20

28

15

21

10

14

24

5

7

12

0

0

2016

Water Usage Consumption Over Time

600,000(m3/m2 •year)

681,589
580,8681.47

450,000

554,00848
21.6152014

21.4912015

1.29

150,000

8

2014

2015

2016

Annual waste amount (left axis)

(t)

1.6

5,000

0

1.5

4,000

1.4

3,000

(%)

75
57.0

61.7
55.2

2,488.7

2,477.003660

3,183.1

1.40

300,000

30.068Recycling rate (right axis)

Water usage (left axis)

750,000

58.49

60

Waste and Recycling Rate Over Time

Consumption rate (right axis)(m3/year)

56.23
57.30

11,304(kg/m2)25
21.14

16,00012,000CO2 emission amount (left axis)(ktCO2)

2016

45

1.3

2,000

30

1.2

1,000

15

0

0

2014

2015

2016

0

Japan Prime Realty Investment Corporation

Recognition by Third Parties■■ Designated as “Green Star,” the Highest Ranking in GRESB Survey, for Four
Consecutive Years
The 2017 GRESB survey acknowledged JPR’s superiority both in the“Management & Policy” and “Implementation & Measurement”
dimensions, and designated JPR as “Green Star,” the highest ranking, forthe fourth consecutive year.
GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark
system for analyzing and evaluating sustainability in terms of environmental friendlinessand social nature. It is based on surveys conducted by a private sector group establishedprimarily by major pension funds in Europe.

■■ Acquisition of DBJ Green Building Certification
Tokyo Square Garden was granted a 5-star assessment in July 2017,
making the total number of JPR properties that have obtained the DBJ
Green Building Certification to 17.

The DBJ Green Building Certification is a certification systemestablished by Development Bank of Japan Inc., designed tosupport real estate properties that feature environmental and social
awareness (“Green Buildings”). The system assesses and certifies realestate properties that meet the social and economic requirements,
based on comprehensive evaluations including responses to avariety of stakeholders, such as considerations to disaster prevention
and care for the communities, on top of their environmental
performances.

Properties with thebest classenvironmental &social awarenessTokyo Square Garden■■ Granted Award of Excellence from the Kanto
district’s Electricity Use Rationalization
Committee (Kawasaki Dice Bldg.)
The Electricity Use Rationalization Committee is an industry groupconducting activities related to popularization, promotion and public
relations, etc. of effective use of electricity and comprehensive energy
conservation.
Kawasaki Dice Bldg. received the award of excellence with recognitions
given to the following initiatives:❚❚ Making the best use of the peak-cut hour discount agreement❚❚ Promoting energy saving by replacing lighting equipment with LED
lamps❚❚ Reducing costs by lowering the unit cost of power rates
Kawasaki Dice Bldg.

9

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

Target investment ratio by area

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

Office: 70 - 90%
Retail: 30 - 10%

Asset Size Expansion Trends(billion yen)

450

Office properties in Tokyo

Office properties in Other Cities

Retail properties

435.0

400
350
300
250
200
150
100
50
0

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

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

Changes in Investment Ratios by Area and by Asset ClassAs a result of focused investments in office properties in Tokyo, the investment ratio of office properties in Tokyo stoodat 67.4% as of the end of the 32nd fiscal period, up 23.9% compared with the 43.5% as of the end of the 1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 32nd Fiscal Period (December 31, 2017)

Increase in the investment ratio of
office properties in Tokyothrough focused investments
Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

Office in
Tokyo
43.5%

+23.9%

Retail in
Other Cities
6.0%
Office in
Other Cities
9.4%
Retailin Tokyo
17.2%

Officein Tokyo

67.4%(Note) The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

10Japan Prime Realty Investment Corporation

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

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

10

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

Office properties
in Central Tokyo

Office properties
in Greater Tokyo

83.9 billion yen
5.7%

5209.0 billion yen
4.1%

Retail properties
Office properties
in Other Cities

100.9 billion yen
5.0%

41.0 billion yen
4.6%
Portfolio average

4.7%

0

Status of Tenant Diversification (ratio of tenant occupancy of 1% or more)
If the ratio of occupancy (ratio of occupied floor space in the portfolio) by a single tenant is low, it reduces the risk oflower revenue when the tenant cancels a contract in the future. JPR keeps the ratio low to enhance the stability ofrevenue.
1% or more by sponsors, etc.
1 tenant / 1.7%

1% or more by other tenants(except for sponsors, etc. and retail tenants)
2 tenants / 2.4%

Number of tenants
Less than 1%

734 tenants / 67.5%

745

companies

1% or more by retail tenants

8 tenants / 28.4%(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees, which shows the diversification status in effect, when the tenant subleases the relevant property to sublessees (end tenants), etc. andthe leasing terms and conditions vary in accordance with the situation of leasing. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If theleased rooms are in multiple buildings, the tenant is counted in plural.

11

Overview of Portfolio Properties
List of Properties (62 Properties for the Entire Portfolio)
Central Tokyo (31 Properties)
Property
Number

Property Name

Location

Acquisition Date

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

PML (%)

A-1

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

3.7

7,994.02

3.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

5.8

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

3.7

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.37

4.4

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

0.9

3,265.34

7.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.6 14,468.38

6.8

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,241.22

7.3

A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,235.05

4.9

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.8

4,088.44

3.5

Jul. 2, 2004

10,0002.3
0.0
0.9 19,284.71

1.3

Total

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

Sep. 26, 2008180

Mar. 25, 2015

4,000

Oct. 21, 2015

786

0.2

Total

14,966

3.4

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.1

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,227.80

3.1

15,121

3.5

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

21,0000.2

1,253.39

4.7

4.8

8,863.98

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

Jul. 14, 2008

1.3

3,760

0.9

3,405.73

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

6.0

Dec. 19, 2008

1,870

0.4

1,700.57

A-17

Rokubancho Bldg.

5.3

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.6

2,488.36

A-18

7.7

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

1.9

4,763.38

6.8

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.2

3,551.01

6.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.2

5,299.89

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.5

6,177.74

2.6

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,896.69

4.5

A-23

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.3 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.29

3.1

Dec. 6, 2013

3,420

0.8
5,401.46

5.6

5,985.62

2.6

Office

A-25

A-26

Shibadaimon Center Bldg.

Minato-ku, Tokyo

Tokyo Square Garden

Chuo-ku, Tokyo

Jul. 30, 2014

800

0.2

Total

4,220

1.0

Feb. 1, 2017

9,200

2.1

Apr. 4, 2017

9,200

2.1

Total

18,4004.2

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0002.8

8,076.85

5.8

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 24, 2006

4,275

1.0

1,027.33

5.4

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,347.81

1.6

2,740

0.6

Aug. 27, 2008

3,400

0.8

1,101.92

3.0

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

RetailTotal
A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo

A-6

GINZA GATES

Chuo-ku, Tokyo

Dec. 15, 2016

10,1002.3

1,665.79

6.8

A-7

FUNDES Suidobashi

Chiyoda-ku, Tokyo

Dec. 15, 2016

3,250

0.7

1,367.56

6.5

56.3 161,955.17—

Subtotal

12

AcquisitionPrice(in millions)¥244,862

Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.4

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.5

5,536.18

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,079.74

6.7

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

10.5

1,490

0.3

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

1.9 15,503.27

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.7

6,476.53

3.9

Sep. 30, 2005

888

0.2

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

2,300

0.5

4,670.27

4.1

3,188

0.7

Total

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

B-1

Total

OfficeAcquisitionPrice(in millions)

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.3

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.5 12,000.08

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,3007.2 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.6

6,494.09

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.4

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.3 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,254

1.7 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.0 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,080

3.5 12,116.35

5.9¥122,885

28.2 189,852.61—

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

PML (%)

Subtotal

Other Cities (14 Properties)
Property
NumberOfficeProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,327.50

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,136.30

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,570.48

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,945.83

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.7

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,876.71

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.6

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,918.15

5.0

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.5 16,654.33

1.6

C-21

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.2

3,949.41

11.5

May 15, 2003

8,000

1.8

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

1.1 18,586.97

4.3

Total

13,000

3.0

RetailC-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.7 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.4

2,478.42

8.4

Subtotal¥67,30315.5 126,361.47

—

Total

¥435,050

100.0 478,169.25

2.0(Note 1) The table above shows properties owned by JPR as of December 31, 2017.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.
(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the first decimal place.

13

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-4
A-12

A-9
Chiyoda
A-24
Ward
A-17
A-4

Tokyo

A-23

Harajuku

A-5

A-3

Shinbashi

A-18

A-1

A-5

Ichigaya

A-21
Shibuya Ward

A-7

A-6

A-25

Shibuya

Sobu Line

A-20
A-3
A-2 A-1

A-26
A-19
A-22

A-13
Keiyo Line

Chuo Ward

Minato Ward

Hamamatsucho

Tamachi
Yamanote Line

A-15

GotandaShinagawaA-7

Shinagawa Ward

A-6
A-16

A-10
Osaki

Tokaido Shinkansen
Yokosuka Line

Keihin Tohoku Line
Tokaido Main Line

Office
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-8
● A-9
● A-10● A-11● A-12● A-13● A-14● A-15RetailKanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

● A-16● A-17● A-18● A-19● A-20● A-21● A-22● A-23

Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(Land with Leasehold Interest)● A-24 Science Plaza – Yonbancho Plaza● A-25 Shibadaimon Center Bldg.
● A-26 Tokyo Square Garden

A Central Tokyo
Chiyoda Ward
Chuo Ward

14

Minato Ward
Shinjuku Ward

Shinagawa Ward
Shibuya Ward

■ A-1
■ A-3
■ A-4
■ A-5
■ A-6
■ A-7

JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
GINZA GATESFUNDES Suidobashi

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

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

Omiya

B-13

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

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main Line

Funabashi

Kinshicho

Tokyo

Shinjuku

Tachikawa

B-11
Ueno
Sobu Main Line
B-1
B-7

Keiyo Line

ShibuyaNambu Line

Chiba

Shinagawa

B-2

■ B-1
■ B-3
■ B-4
■ B-5

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

Musashikosugi

KANAGAWA

B-4

Yokohama Line

Tokaido Shinkansen

Musashikosugi
Tokaido Main Line
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

RetailUchibo Line

B-3

Kamiooka

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

OSAKA

Retail
■ C-1
■ C-4
■ C-5

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

C-7
C-14
C-20

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

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
NAHA

C-9

WAKAYAMA

C-13

15

Portfolio Properties
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Kanematsu Bldg. Annex
Chuo Ward, Tokyo

Acquisition Price
Site Area¥2,874 million
679.06 m2

Total Floor Space
Structure/Floors
Completed

4,351.46 m2
SRC B1/8F
February 1993

Property Manager

Tokyo Tatemono Co., Ltd.

A-3

JPR Ningyo-cho Bldg.
Chuo Ward, Tokyo

Acquisition Price
Site Area

550.06 m2

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

Total Floor Space

14,995.09 m

Structure/Floors
Completed

CompletedFebruary 1993

A-6

Chiyoda Ward, Tokyo

Acquisition Price
Site Area

SRC/RC B1/8F
December 1989

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

4,117.70 m2

Property Manager

Property Manager

2

A-4

Structure/Floors

S/RC/SRC B2/13F¥2,100 million

MS Shibaura Bldg.
Minato Ward, Tokyo¥2,420 million
657.80 m2

Total Floor Space
Structure/Floors
Completed

5,152.98 m2
SRC B1/9F
October 1984

Property Manager

Tokyo Tatemono Co., Ltd.

A-5

JPR Crest Takebashi Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥4,000 million
636.90 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

4,790.68 m2
SRC B1/9F
September 1999

Tokyo Tatemono Co., Ltd.

16

Acquisition Price
Site Area
Total Floor Space¥11,200 million
8,992.18 m2

Structure/Floors
Completed

31,020.21 m

Property Manager
2

SRC/RC/S B2/13F
February 1988

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-7

OfficeRetailGotanda First Bldg.

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

Shinagawa Ward, Tokyo

Acquisition Price
Site Area¥2,920 million
1,551.19 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

A-9

JPR Ichigaya Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥5,100 million
1,058.04 m2

Total Floor Space
Structure/Floors
Completed

5,888.82 m2
SRC B1/9F
March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

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

78,796.00 m2(entire redevelopment project)

Acquisition Price
Site Area
Total Floor Space

¥3,500 million
4,006.00 m2

Structure/Floors
Completed

S/SRC B2/17F
June 2001

Property Manager

28,575.80 m

Tokyo Tatemono Co., Ltd.

2

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

Structure/Floors

S/RC/SRC B4/30F

Completed

October 1994

Acquisition Price
Site Area

Property Manager

Tokyo Tatemono Co., Ltd.

Total Floor Space¥15,121 million
3,522.46 m2

Structure/Floors
Completed

SRC B2/14F
April 1985

25,733.10 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

17

Portfolio Properties
Central Tokyo

OfficeRetailShinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo
Acquisition Price
Site Area

Center Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo¥710 million
858.48 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Tokyo Tatemono Co., Ltd.

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

Total Floor Space
Structure/Floors
Completed

4,570.63 m2
S 9F
June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo

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

Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

176,607.89 m

Tokyo Tatemono Co., Ltd.

2Harajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥1,870 million
828.82 m2

Total Floor Space
Structure/Floors
Completed

5,216.21 m2
S B1/8F
July 2008

Property Manager

Tokyo Tatemono Co., Ltd.

Bldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥2,800 million
716.95 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

4,205.09 m2
SRC B3/7F
October 1991

Tokyo Tatemono Co., Ltd.

18

Acquisition Price
Site Area
Total Floor Space

¥8,400 million
1,205.07 m2

Structure/Floors
Completed

6,466.94 m

Property Manager
2

SRC B1/9F
March 1989

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailTatemono Kyobashi Bldg.
A-19 Tokyo
Chuo Ward, Tokyo
Acquisition Price
Site Area

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo¥5,250 million
547.10 m2

Total Floor Space
Structure/Floors
Completed

4,419.79 m2
SRC/S B1/10F
January 1981

Property Manager

Tokyo Tatemono Co., Ltd.

Nihonbashi-horidome Bldg.
A-20 JPR
Chuo Ward, Tokyo
Acquisition Price
Site Area¥5,100 million
937.59 m2

Total Floor Space
Structure/Floors
Completed

7,190.82 m2
SRC B1/9F
June 2002

Property Manager

Tokyo Tatemono Co., Ltd.

Sanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo

Acquisition Price
Site Area¥3,400 million
1,119.27 m2

Total Floor Space

Site Area
Total Floor Space¥15,050 million
2,217.49 m2

Structure/Floors
Completed

S 8F
May 2009

Property Manager

7,683.19 m

2

Tokyo Tatemono Co., Ltd.

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

Structure/Floors
Completed
Property Manager

8,851.00 m2

Acquisition Price

Acquisition Price

SRC B2/9F
October 1982

Mitsubishi Jisho Property
Management Co., Ltd.

Site Area¥36,000 million

Structure/Floors
Completed

11,034.78 m

2

Total Floor Space–

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

19

Portfolio Properties
Central Tokyo

OfficeRetailCenter Bldg.
A-25 Shibadaimon
Minato Ward, Tokyo

Acquisition Price
Site Area¥4,220 million
1,915.50 m2

Total Floor Space

11,419.93 m2

Structure/Floors

Square Garden
A-26 Tokyo
Chuo Ward, Tokyo

S/SRC B1/10F

Completed

July 1993

Acquisition Price

Structure/Floors

Site Area

Completed¥18,400 million
8,124.72 m2

Total Floor Space

Property Manager

Nomura Real Estate Partners Co., Ltd.

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area

112,645.83 m

2

A-1

S/SRC B4/24F
February 2013

Property Manager

Tokyo Tatemono Co., Ltd.
The Dai-Ichi Building Co., Ltd.

JPR Shibuya Tower Records Bldg.
Shibuya Ward, Tokyo

¥2,660 million
5,289.01 m2

Total Floor Space
Structure/Floors
Completed

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

Property Manager

Nomura Real Estate Partners Co., Ltd.

A-3

JPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥4,275 million
198.10 m2

Total Floor Space
Structure/Floors
Completed

1,066.81 m2
S/SRC B1/7F
February 2006

Property Manager

Jones Lang LaSalle K.K.

20

Acquisition Price
Site Area
Total Floor Space

¥12,000 million
1,010.47 m2

Structure/Floors
Completed

8,449.56 m

Property Manager
2

SRC/S B3/8F
February 1992

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo
A-4/ Greater Tokyo

RetailShinjuku Sanchome East Bldg.

Site Area¥2,740 million
2,578.69 m2

Total Floor Space

24,617.65 m

Structure/Floors
Completed

S/SRC/RC B3/14F
January 2007

Property Manager
2

OfficeA-5

Shinjuku Ward, Tokyo

Acquisition Price

A-6

OfficeTokyo Tatemono Co., Ltd.

GINZA GATESYurakucho Ekimae Bldg. (Yurakucho Itocia)
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥3,400 million
6,808.12 m2

Total Floor Space

Structure/Floors
Completed

S/SRC B4/20F
October 2007

Property Manager

71,957.65 m

Tokyo Tatemono Co., Ltd.

2

A-7

Chuo Ward, Tokyo

RetailFUNDES Suidobashi
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥3,250 million
281.59 m2

Total Floor Space
Structure/Floors
Completed

1,477.91 m2
S 9F
July 2015

Property Manager

Prime Place Co., Ltd.

B-2

JPR Chiba Bldg.
Chiba City, Chiba

Acquisition Price
Site Area
Total Floor Space
Acquisition Price
Site Area
Total Floor Space¥10,100 million
230.11 m2
1,821.67 m

Structure/Floors
Completed
Property Manager

2

S 11F
June 2008

Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed¥2,350 million
1,382.35 m2
9,072.57 m2
S/SRC B1/13F
January 1991

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

21

Portfolio Properties
Greater Tokyo
B-1

OfficeRetailArca East

B-3

Sumida Ward, Tokyo

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price¥2,927 million

Site Area

1,100.59 m2

Total Floor Space

9,146.52 m2

Structure/Floors

SRC B1/11F

Completed

October 1989

Property Manager

Tokyo Tatemono Co., Ltd.

B-5

Acquisition Price
Site Area¥5,880 million
3,755.01 m2

Total Floor Space

34,281.86 m

2

B-6

Structure/Floors
CompletedShinyokohama 2nd Center Bldg.
Yokohama City, Kanagawa

S/SRC B3/19F
March 1997

Property Manager

Tokyo Tatemono Co., Ltd.

Kawaguchi Center Bldg.
Kawaguchi City, Saitama

Acquisition Price
Site Area¥1,490 million
841.71 m2

Total Floor Space

7,781.93 m

Tachikawa Business Center Bldg.
Tachikawa City, Tokyo

Site Area

Site Area
Total Floor Space

¥8,100 million
4,524.61 m2
28,420.85 m

2

22Completed
Property Manager

S/SRC B2/15F
February 1994

Nomura Real Estate Partners Co., Ltd.

¥3,188 million
2,047.22 m2

Total Floor Space
Structure/Floors

August 1991

Nomura Real Estate Partners Co., Ltd.

Acquisition Price

Acquisition Price

S/SRC B2/12F

Completed
Property Manager

2

B-8

Structure/Floors

Structure/Floors
Completed
Property Manager

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

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-7

OfficeRetailJPR Ueno East Bldg.

B-9

Taito Ward, Tokyo

Rise Arena Bldg.
Toshima Ward, Tokyo

Acquisition Price
Acquisition Price
Site Area
Total Floor Space

¥3,250 million
1,242.97 m2
8,490.44 m2

Structure/Floors
Completed

Site Area

S/SRC B1/8F
October 1992

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

9,377.28 m2(entire redevelopment project)
Total Floor Space

91,280.94 m(including residential tower)

Site Area
Total Floor Space

¥6,510 million
12,011.00 m

Structure/Floors
Completed2

185,974.87 m2

Property Manager

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

Completed

January 2007
Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

(Note) The commercial tower portion has 2 basement floors and 15 floors above ground.

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Acquisition Price

Structure/Floors

2

Property Manager

Jones Lang LaSalle K.K.

¥5,831 million

S/SRC/RC B3/27F
March 1997

Tokyo Tatemono Co., Ltd.

Site Area¥31,300 million

27,335.29 m2 (entire site area)

Total Floor Space

Structure/Floors

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

CompletedFebruary 2006

257,842.41 m

Property Manager
2(includes commercial tower and residential tower)

Tokyo Tatemono Co., Ltd.

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

23

Portfolio Properties
Greater Tokyo

OfficeRetailTatemono Yokohama Bldg.
B-12 Tokyo
Yokohama City, Kanagawa

Acquisition Price
Site Area¥7,000 million
1,110.28 m2

Total Floor Space

8,772.51 m

2

B-1

Structure/Floors
Completed

Prime East
B-13 Omiya
Saitama City, Saitama

SRC B1/9F
May 1981

Property Manager

Tokyo Tatemono Co., Ltd.

Tanashi ASTA

Acquisition Price
Site Area

2,268.09 m2

Total Floor Space

Site Area
Total Floor Space

¥10,200 million
12,326.30 m2
80,675.27 m

2

24Structure/Floors
Completed
Property Manager

SRC B2/17F

Completed

Site Area

S 9F
February 2009

Property Manager

9,203.98 m

Tokyo Tatemono Co., Ltd.

Cupo-la Main Bldg.
Kawaguchi City, Saitama

Acquisition Price
Acquisition Price

Structure/Floors

2

B-3

Nishitokyo City, Tokyo

¥6,090 million¥2,100 million

Structure/Floors

S/RC/SRC B2/10F

Completed15,008.28 m

2

February 1995

Tokyo Tatemono Co., Ltd.

(entire redevelopment project)
Total Floor Space

48,321.96 m

2January 2006
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-4

Office/ Other Cities

RetailJPR Musashikosugi Bldg.

OfficeB-5

Kawasaki City, Kanagawa

RetailMusashiurawa Shopping Square
Saitama City, Saitama

Acquisition Price¥4,335 million

Site Area

8,317.99 m2

Total Floor Space

28,930.36 m2

Structure/Floors
Completed

S B1/4F
October 2005

Property Manager

Geo-Akamatsu Co., Ltd.
Tokyo Tatemono Co., Ltd.

B-6

Acquisition Price
Site Area

4,757.09 m2

Total Floor Space

C-1¥7,254 million

18,394.32 m

Structure/Floors
Completed

Kawasaki Dice Bldg.
Kawasaki City, Kanagawa

SRC/RC/S B1/6F
March 1983

Property Manager
2

Tokyo Tatemono Co., Ltd.

Niigata Ekinan Center Bldg.
Niigata City, Niigata

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

Total Floor Space

Structure/Floors

36,902.01 m

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Honmachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area

Site Area
Total Floor Space

¥2,140 million
2,706.99 m2
19,950.42 m

Structure/Floors
Completed

March 1996

Property Manager
2

S/SRC B1/10F

Jones Lang LaSalle K.K.

¥4,150 million
1,432.64 m2

Total Floor Space
Acquisition Price

August 2003

Property Manager
2

C-4

S/SRC/RC B2/11F

Completed

Structure/Floors
Completed

14,619.52 m2
SRC B3/9F
February 1970

Property Manager

Tokyo Tatemono Co., Ltd.

25

Portfolio Properties
Other Cities
C-7

OfficeRetailJPR Hakata Bldg.

C-9

Fukuoka City, Fukuoka
Acquisition Price
Site Area

Structure/Floors

Naha City, Okinawa¥2,900 million
1,214.63 m

Total Floor SpaceJPR Naha Bldg.

Acquisition Price2

Site Area

959.87 m2

9,828.73 m2

Total Floor Space

S/SRC B1/12F

Structure/Floors

Completed

June 1985
expansion in November 2003

Completed

Property Manager

Acquisition Price
Site Area

Structure/Floors
Completed

SRC/S 12F
October 1991

Tokyo Tatemono Co., Ltd.

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama
Acquisition Price¥3,150 million
1,895.67 m

Total Floor Space

5,780.71 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Japan Sendai Bldg.
C-12 Sompo
Sendai City, Miyagi¥1,560 million

Site Area
Total Floor Space

10,783.52 m2

Structure/Floors

SRC B1/12F

Completed

December 1997

Property Manager

6,715.07 m2
S 9F
July 1996

Property Manager

Tokyo Tatemono Co., Ltd.

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

2

Tokyo Tatemono Co., Ltd.

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥2,810 million
1,164.39 m2

Total Floor Space
Structure/Floors
Completed

8,690.95 m2
S/SRC 13F
July 2000

Property Manager

Tokyo Tatemono Co., Ltd.

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price
Site Area¥2,140 million
668.11 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,696.01 m2
SRC B2/9F
October 1993

Tokyo Tatemono Co., Ltd.

26

Acquisition Price
Site Area
Total Floor Space

¥10,996 million
4,348.43 m2

Structure/Floors
Completed

22,286.35 m

Property Manager
2

SRC 14F
January 2009

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

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

C-1

JPR Umeda Loft Bldg.
Osaka City, Osaka¥4,137 million
1,610.38 m2

Total Floor Space
Structure/Floors
Completed

10,201.44 m2
SRC B1/9F
March 1991

Property Manager

Tokyo Tatemono Co., Ltd.

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

Total Floor Space
Structure/Floors

5,303.98 m2
S B2/10F

Acquisition Price

CompletedFebruary 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

C-4

Housing Design Center Kobe

Site Area
Total Floor Space

¥7,220 million
3,994.47 m2
33,877.71 m

Structure/Floors
Completed
Property Manager

2

SRC/S B2/11F
June 1994

Tokyo Tatemono Co., Ltd.

3,518.68 m2

Total Floor Space

Structure/Floors
Completed

SRC B1/8F
April 1990

Property Manager

17,897.56 m

Tokyo Tatemono Co., Ltd.

2

C-5

Kobe City, Hyogo

Acquisition Price

Site Area¥13,000 million

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area
Total Floor Space

¥6,000 million
592.45 m2

Structure/Floors
Completed

S/SRC 9F
June 1994

3,219.36 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

27

Structure and History of JPR
The Objective and Basic Characteristics of JPR
With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties found in
thriving commercial areas, multi-use facilities and the land on which they are located as well as in asset-backed
securities that have such real estate as their primary investments. In addition, in light of the returns and risks ofthese investment targets, JPR shall make it a basic policy to invest not only in Tokyo, but also strive to diversify into
other regional cities so as to maximize the advantages of portfolio management.

Corporate History
Date

Description

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

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

Structure of JPR
52%

18%

10%

10%

10%

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Administrative Agent forEnvironment-Related Laws andRegulations

Equity Investment
Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

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

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

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

28

Tokyo Tatemono Co., Ltd.

Investment Corporation

Asset
Management
Property

General Tenant Services Agent /Construction Management Agent /Property Transfer Agent /Administrative Agent forEnvironment-Related Laws andRegulations

Cash
Distribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

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

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Japan Prime Realty Investment Corporation

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

NameBusiness Description
Capitalization

Shareholder
Composition (Note 1)

Corporate History

April 28, 2000
October 13, 2000

EstablishedObtained license as real estate transaction agent (currently: No. (3) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act (Approval
Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts and Investment
Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note 2)
Applied for registration and submitted application form for financial instruments exchange business

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

(Note 1) The percentage represents the ratio of the number of respective shares with voting rights to the total number of shares with voting rights.
(Note 2) Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006)

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

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

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

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions, as wellas the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees are comprised of the President and CEO,
Investment Management Division General Manager, Financial Division General Manager, and Corporate Planning /Administration Division General Manager. The Compliance Office General Manager also participates in thesecommittees to enhance confirmation in terms of legal compliance. Matters concerning the targets and policies ofinvestment management are decided by the Board of Directors, and matters concerning planning and implementationof asset management are decided by the Investment Committee.
Matters concerning acquisition, disposition or management of individual properties are decided by the Investment
Subcommittee or the Fund Management Subcommittee, respectively. Moreover, the Board of Directors has final
decision-making authority for acquisitions and dispositions of individual assets having over a certain amount of value.
29

Asset Management Report

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

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance

Fiscal Period

Operating Revenue
Rent revenue – real estate
Gain on sale of real estate

Operating Expenses
Expenses related to rent business
Loss on sale of real estate

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
Occupancy Rate

28th Fiscal
Period(Jul. 1, 2015 Dec. 31, 2015)
14,10529th Fiscal
Period(Jan. 1, 2016 Jun. 30, 2016)14,24630th Fiscal
Period(Jul. 1, 2016 Dec. 31, 2016)
15,105

Million yen

14,105

14,246

15,105－
7,372

0Million yen

－
7,273

7,944

Million yen

6,553

6,658

Million yen

－
6,831

－
6,874

7,161

5,746

5,897

6,153

5,749

5,896

6,152

Unit
Million yen
Million yen

Million yen
Million yen
Million yen

31st Fiscal
Period(Jan. 1, 2017 Jun. 30, 2017)15,11832nd Fiscal
Period(Jul. 1, 2017 Dec. 31, 2017)15,141

210

7,370

6,898

6,599

－
7,572

300

－
7,747

－
7,569

14,907

6,868
6,867

15,141

6,810

6,666
6,665

Million yen

418,739

418,738

432,307446,068

446,487

Million yen

176,292

176,126

188,960

181,394

216,384

216,639

238,611

181,228

210,395

210,395

231,653

5,897

6,152

6,657

873,000

873,000

923,000

923,000

247,862

248,154

6,756

7,048

7,213

7,048

7,213

7,223

6,756
－
1.4

－
1.4

－
1.6

2.8

2.9

3.2

－
1.5

%

Million yen%(-0.0)

216,238(+0.1)

Million yen

210,395%

100.0

Million yen

5,751

Units

873,000

Yen

6,588

Yen
Yen
Yen
%
%

247,696

6,588
－
1.4
2.7

(-0.0)(+0.1)

100.0(+3.2)(+0.1)

100.0(+3.2)(+10.1)

96.9

258,516(+0.1)

238,619(+0.0)

231,653

6,666
100.0

258,525

7,223

3.0

%

2.7

2.7

2.8

3.0

2.8

%

5.3

5.5

5.6

6.1

5.5

216,092

216,238

216,384

216,639

238,611

51.6

51.7

50.1

53.5

53.4

(+0.0)(+0.0)(-1.6)(+3.4)(-0.0)

%

42.1

42.1

43.7

40.7

40.6

Times

8.7

9.1

9.9

10.7

11.2

Million yen

8,619

8,738

9,269

9,452

9,430

Million yen%

Million yen

887

842

994

955

931

Million yen

9,427

9,473

10,09010,216

10,252

%

4.6

4.6

4.7

4.7

4.7

Million yen

8,581

8,701

9,366

9,652

9,627

%

4.1

4.3

4.4

4.4

4.4

m2
%

62

62

63

650

661

679

476,352.67

476,345.81

477,249.40

97.4

98.1

98.6

62

730

477,972.54

98.0

62

745

478,169.25

98.5(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debts / total assets at end of period x 100(Note 5) Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Income before income taxes - gain on sale of real estate + loss on sale of real estate + loss on sale of investment securities + 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

3030

Japan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (28th fiscal period: ¥410.30 billion, 29th fiscal period: ¥410.30 billion, 30th fiscal period: ¥423.65 billion,
31st fiscal period: ¥439.89 billion and 32nd fiscal period: ¥435.05 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: 28th fiscal period: 184 days, 29th fiscal period: 182 days,
30th fiscal period: 184 days, 31st fiscal period: 181 days and 32nd fiscal period: 184 days.
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

(2) 32nd Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 923,000 units as of today. 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
In the 32nd fiscal period, the Japanese economy remained on track for a moderate recovery, as improvements in corporate earnings
led to an increase in capital investment while consumer spending showed a pickup under the solid employment and income
environment. The overseas economy also continued to stay on a mild recovery path, with concerns about political and economicrisk factors somewhat fading during the six months, although such risks do exist nonetheless.
The Office Property Leasing Market
The supply and demand conditions in the office property leasing market of the 23 wards of Tokyo remained tight as new demand
for such positive development as setting up new offices, expanding the office spaces and moving to better locations continued to
be strong. The upward trend of the rent levels for new contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
The need of tenants to open stores remained strong for urban retail properties in which JPR targets for investment. Consumption
by inbound foreign tourists also showed robust results, and the leasing market for urban retail properties remains in good shape ingood locations, such as Ginza, Omotesando and Shinsaibashi.
The For-Sale Real Estate Market
In the for-sale real estate market, investors remain highly willing to purchase properties while blue-chip properties are in short
supply. With low-yield transactions continuing to prevail, the acquisition environment remains harsh. Accordingly, investors
continue to look for ways to effectively acquire properties, such as diversifying the target assets for investment and conducting
asset replacement.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality of the portfolio and achieving stable growth of its earnings while
paying attention to balancing diversification of the portfolio, both in terms of location and asset type.
During the 32nd fiscal period, JPR investigated possible investments primarily in office properties in the Tokyo area, but noacquisition was closed and completed. As of the end of December 2017, the balance of JPR’s assets under management totaled 62
properties, or 435.0 billion yen on an acquisition price basis, with the total leasable floor space standing at 478,169m 2 and thenumber of tenants reaching 745.

3131

Asset Management Report

Operational Management of Portfolio
In the office property leasing market in the 32nd fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving its
occupancy rate. As a result of these efforts, the occupancy rate at the end of the 32nd fiscal period increased 0.5 points period-onperiod to 98.5%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with the aim to create spaces where the workers feel
comfortable. As an endeavor to implement energy-saving measures, JPR conducted renovations of air-conditioning systems andreplaced lighting equipment in common areas with LED lamps, which are expected to be effective for achieving this objective, at
its multiple properties.
With regard to initiatives on environmental issues, JPR has continuously obtained the DBJ Green Building Certification*1. With its
three buildings newly certified in the 32nd fiscal period, JPR has acquired the Certification for 17 of the buildings it owns as ofDecember 31, 2017. Moreover, in the GRESB*2 Real Estate Assessment (the survey conducted in 2017), JPR was designated as“Green Star,” marking the fourth consecutive year of recognition with the highest ranking in the survey. JPR was also granted ahigher rank of “4 Stars” in the GRESB Rating (five-level rating with the highest being “5 Stars”), which makes relative assessment
based on total scores, for two consecutive years.
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet the various
social requirements surrounding real estate from stakeholders (“Green Buildings”).
*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 60 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in debt financing with more emphasis placed on lengthening the debt maturity and diversifying repayment dates,in an effort to make its financial base more solid and stronger against the backdrop of the favorable fund procurement environment
and low interest rates. In the 32nd fiscal period, JPR borrowed 17.9 billion yen to fund the refinance of interest-bearing debts thatmatured during the fiscal period. The average maturity of and the average interest on the new interest-bearing debts stood at 7.9
years and 0.61%, respectively, in contrast to 5.2 years and 0.91% for the relevant interest-bearing debts before refinancing.
As of the end of the 32nd fiscal period, the balance of interest-bearing debts totaled 181.2 billion yen, with balance of borrowingsof 151.7 billion yen and balance of investment corporation bonds of 29.5 billion yen. The ratio of interest-bearing debt to total
assets (Note 1) was 40.6%, long-term and fixed interest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3) was
0.96% and average maturity (Note 4) was 4.6 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 this fiscal period.
Details of Corporate Credit Ratings as of December 31, 2017
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 32nd fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

32

32

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date
June 16, 2015

Additional public offering

June 24, 2015

Third-party allotment

January 24, 2017

Additional public offering

February 14, 2017

Third-party allotment(Note 1)

Number of Units
Outstanding

Event

Unitholders' Capital(millions of yen)

Remarks

Variation
45,700

Balance
870,700

Variation
17,472

Balance
209,516(Note 1)2,300

873,000

879

210,395(Note 2)2,400

923,000

1,020

231,653

47,600920,600

20,237

230,632(Note 3)(Note 4)

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

(Note 2)

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

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

(Note 4)

New investment units were issued through a third-party allotment at 425,452 yen per unit to fund acquisition of new specific assets and partly repay debts.

(4) Cash Distributions
With regard to the cash distributions of the 32nd fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 31st fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result,the cash distribution per unit came to 7,223 yen for the 32nd fiscal period.

Fiscal Period
Unappropriated Retained Earnings at End of Period
Internal Reserves(Thousands of yen unless otherwise indicated)

28th Fiscal
Period29th Fiscal
Period30th Fiscal
Period31st Fiscal
Period32nd Fiscal
Period(Jul. 1, 2015 Dec. 31, 2015)(Jan. 1, 2016 Jun. 30, 2016)(Jul. 1, 2016 Dec. 31, 2016)(Jan. 1, 2017 Jun. 30, 2017)(Jul. 1, 2017 Dec. 31, 2017)

5,769,258

5,914,654

6,169,462

6,883,962

6,681,774

17,934

16,666

16,558226,363

14,9455,751,324

5,897,988

6,152,904

6,657,599

6,666,829(Cash Distribution per Unit)(6,588 yen)

(6,756 yen)

(7,048 yen)

(7,213 yen)

(7,223 yen)

Total Cash Distributions from Net Income

5,751,324

5,897,988

6,152,904

6,657,599

6,666,829(Cash distribution from net income per unit)(6,588 yen)

(6,756 yen)

(7,048 yen)

(7,213 yen)

(7,223 yen)

－

－

－

－

－

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

－

－

－

－

－

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

－

－

－

－

－

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

Total Cash Distributions

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

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy is anticipated to recover moderately, given continued improvements in the employment andincome environments and supported by the effects of various policies. However, attention should be paid to the uncertainty in overseas
economies and the impacts of fluctuations in the financial and capital markets.
In the office property leasing market, new supply in the 23 wards of Tokyo is expected to increase in 2018 through 2020. However, if
the economy remains brisk as it is now, the market situation in general is likely to stay in good shape. In this regard, JPR believes itwill be able to fully enjoy the positive impact of the good market situation as it has focused on improving tenant satisfaction throughproactive implementation of value enhancement works and provision of elaborate management services. When conducting real estatetransactions in the for-sale real estate market that continues to appear overheated, it will become even more important to discern thegrowth potential in earnings of respective properties. Considering the situation in which cap rates are decreasing in a low interest rateenvironment, it is required to firmly keep the attitude of vigorously selective investment for implementing real estate investment thatassumes possession of properties over the medium to long term.

3333

Asset Management Report

1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on Tokyo office properties, with an aim to improve the quality of its portfolio andenhance its growth potential and stability over the long term. Given the briskness in the office property leasing market, the for-salereal estate market sees a decrease in purchase cap rate and expected cap rate levels. Moreover, with properties remaining in short
supply, there are deals that were closed at prices that have factored in lower cap rates and rent increases. Accordingly, JPR will
fully investigate the growth potential of such properties when acquiring them. As for retail properties as well as office properties inregional cities, JPR will work to invest in strictly selected blue-chip properties that can keep stable revenues at a certain level inorder to complement the stability of earnings from the entire portfolio. JPR will strive to acquire new properties under reasonable
terms by negotiating prices based on detailed market studies and property due diligence in considering properties.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of the Asset Manager (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation, Sompo Japan
Nipponkoa Insurance Inc. and Meiji Yasuda Life Insurance Company), accurately following market trends and carefully researchinginvestment value, including the future potential of candidate properties.
Furthermore, JPR will also investigate asset replacement in a prudent manner, while taking into consideration the timing of
implementation, in order to improve the quality of its portfolio and enhance its growth potential over the long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and increase tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

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

(7) Significant Subsequent Events
Not applicable3434

Japan Prime Realty Investment Corporation

2. Overview of the Investment Corporation(1) Unitholders’ Capital
28th Fiscal
Period as ofDecember 31, 2015
5,000,000

29th Fiscal
Period as ofJune 30, 2016
5,000,000

30th Fiscal
Period as ofDecember 31, 2016
5,000,000

31st Fiscal
Period as ofJune 30, 2017
5,000,000

32nd Fiscal
Period as ofDecember 31, 2017
5,000,000

Total number of units issued andoutstanding

873,000

873,000

873,000

923,000

923,000

Unitholders' capital (millions of yen)

210,395

210,395

210,395

231,653

231,653

Total number of unitholders

13,264

11,786

11,177

12,535

12,196

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 32nd fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

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

228,332

24.73

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

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

94,61910.25

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

39,607

4.29

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

30,274

3.27

Tokyo Tatemono Co., Ltd.

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

29,3003.17

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

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

25,815

2.79

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.70

Meiji Yasuda Life Insurance Company

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

24,0002.60

State Street Bank West Pension Fund Clients Exempt
505233 (Standing Proxy: Settlement & Clearing
Services Division, Mizuho Bank, Ltd.)

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

18,7002.02

DFA International Real Estate Securities Portfolio(Standing Proxy: Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.)

6300 Bee Cave Road, Building One, Austin,
TX 78746, U.S.A.
(6-27-30 Shinjuku, Shinjuku-ku, Tokyo)

11,306

1.22

526,953

57.09

The Nomura Trust and Banking Co., Ltd. (Investment
Trust Account)
Trust & Custody Services Bank, Ltd. (Securities
Investment Trust Account)

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

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 32nd fiscal period are as follows.
Position

Executive Officer

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

Name

Other Current Assignments

Total Directors' Fee
during the 32nd Fiscal
Period (thousands of yen)

Satoshi Okubo(Note 3)

Director, Tokyo Realty Investment Management, Inc.

Hirohito Kaneko(Note 3)

Representative Counsel, Hirohito Kaneko Law Office

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

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

4,200

Ernst & Young
ShinNihon LLC－

13,000

Numberof Owned
Units
1

2,400
－
－
－
－

(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.

3535

DFA International Real Estate Securities Portfolio(Standing Proxy: Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.) Report
Asset Management

6300 Bee Cave Road, Building One, Austin,
TX 78746, U.S.A.
(6-27-30 Shinjuku, Shinjuku-ku, Tokyo)

Total

11,306

1.22

526,953

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

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 32nd fiscal period are as follows.
Position

Executive Officer

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

Name

Other Current Assignments

Total Directors' Fee
during the 32nd Fiscal
Period (thousands of yen)

Satoshi Okubo(Note 3)

Director, Tokyo Realty Investment Management, Inc.

Hirohito Kaneko(Note 3)

Representative Counsel, Hirohito Kaneko Law Office

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

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

4,200

Ernst & Young
ShinNihon LLC－

13,000

Numberof Owned
Units
1

2,400
－
－
－
－

(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.

(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements and fees regarding preparation of comfort letters for additional
35
issuance of new investment units.

(Note 3) Satoshi Okubo was newly appointed as Executive Officer at the Eleventh General Meeting of Unitholders of JPR held on September 5, 2017, and took office on
September 15, 2017. Meanwhile, Hirohito Kaneko left office of Executive Officer on September 14, 2017 upon the expiration of his term of office.

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.
C. Matters Regarding the Party That Was Subject to Business Suspension Order in the Past Two YearsOn December 22, 2015, the Financial Services Agency of Japan issued a three month (January 1, 2016 to March 31, 2016) businesssuspension order to Ernst & Young ShinNihon LLC, the independent auditor of JPR, under which it was prevented from taking on
any new business contracts. JPR comprehensively investigated the quality control of audits by Ernst & Young ShinNihon,
independence of its audit team, progress in implementing the business improvement plan and other factors, and confirmed that auditsof JPR by the firm are conducted appropriately. Accordingly, its audit agreement with Ernst & Young ShinNihon remains effective.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 32nd fiscal period are as follows.
Outsourcing Category

36

Asset manager

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

Japan Prime Realty Investment Corporation

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset Type

31st Fiscal Period(as of June 30, 2017)

Area

Assets owned by JPR(thousands of yen)Central Tokyo
Real estate

Greater Tokyo
Other Cities
Central Tokyo

Real estate in trust

Greater Tokyo
Other Cities

Deposits and otherassets－Total assets－

86,697,991
57,134,364
20,714,393
156,942,899
50,791,875
41,601,149
32,185,653(－)
446,068,327(413,882,673)

32nd Fiscal Period(as of December 31, 2017)

Percentage of total
assets (%)

19.4
12.8
4.6
35.2
11.4
9.3
7.2
(－)
100.0
(92.8)

Assets owned by JPR(thousands of yen)

86,628,083
56,833,457
20,547,431
156,567,864
50,510,178
41,499,218
33,901,281(－)
446,487,515(412,586,234)

Percentage of total
assets (%)

19.4
12.7
4.6
35.1
11.3
9.3
7.6
(－)
100.0
(92.4)(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheets as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 32nd fiscal period.

Property NameBook Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Asset Class

Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

11,034.78

100.0

11.3

OfficeOlinas Tower

27,560,889

23,987.40

23,987.40

100.0

6.7

OfficeShinjuku Center Bldg.

22,179,264

8,863.98

8,545.59

96.4

3.3

OfficeTokyo Square Garden

18,658,320

5,985.62

5,985.62

100.0

2.8

OfficeBYGS Shinjuku Bldg.

15,447,919

15,227.80

15,145.81

99.5

3.8

OfficeJPR Sendagaya Bldg.

14,891,257

6,177.74

6,177.74

100.0

2.0

OfficeKanematsu Bldg.

14,642,330

7,994.02

7,994.02

100.0

2.5

OfficeKawasaki Dice Bldg.

13,436,801

12,116.35

12,116.35

100.0

2.8

RetailShinjuku Square Tower

13,379,242

19,284.71

19,261.84

99.9

2.7

OfficeJPR Umeda Loft Bldg.

12,423,055
191,007,339

18,586.97
129,259.37

18,586.97
128,836.12

100.0
99.7

2.4
40.3

RetailTotal(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, Kawasaki Dice Bldg. and Shinjuku Square Tower have sublet space to a sub-lessee and a leaseagreement has been executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor
space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

3737

Asset Management Report(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 32nd fiscal period (December 31, 2017).

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

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

Central Tokyo

Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.

Retail21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo

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

8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo
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
2-9, etc., Rokubancho, Chiyoda-ku, Tokyo

6-18 Kyobashi 3-chome, Chuo-ku, Tokyo
11-12 Nihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
23-5 Sendagaya 4-chome, Shibuya-ku, Tokyo
6-1 Ginza 4-chome, Chuo-ku, Tokyo
6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Tokyo

Form ofOwnership
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

14,642,330

13,800,000

2,437,720

2,520,000

1,959,773

2,710,000

2,454,013

3,310,000

3,265,078

3,330,000

11,005,147

11,700,000

2,958,974

2,780,000

5,205,250

5,210,000

2,844,731

4,940,000

13,379,242

14,400,000

15,447,919

19,000,000

Real estate

600,301

890,000

Real estate

22,179,264

15,800,000

Real estate

3,838,824

2,840,000

Real estate

1,728,932

1,870,000

Real estate
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

2,836,912

3,410,000

8,698,556

9,140,000

5,311,083

5,720,000

4,753,511

6,720,000

14,891,257

11,800,000

3,715,191

4,060,000

38,388,259

47,700,000

2,694,637

3,290,000

4,184,694

6,390,000

18,658,320

20,400,000

11,508,466

14,400,000

4,286,062

4,100,000

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 1-chome, Chuo-ku, Tokyo

JPR Shibuya Tower Records Bldg.

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

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

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
GINZA GATES

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

2,618,044

2,820,000

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

Real estate

3,315,353

3,140,000

5-14 Ginza 5-chome, Chuo-ku, Tokyo
20-8 Kanda Misakicho 2-chome, Chiyoda-ku,
Tokyo (Note 2)

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

10,144,997

10,800,000

3,243,092

3,570,000

4,294,939

6,250,000

2,232,734

1,680,000

2,464,590

2,340,000

1,425,911

1,750,000

6,941,374

8,980,000

FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office3-3 Kojimachi 4-chome, Chiyoda-ku, Tokyo

Tokyo Tatemono Kyobashi Bldg.

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

Greater Tokyo

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

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

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

JPR Sendagaya Bldg.

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

38

14-1 Kyobashi 2-chome, Chuo-ku, TokyoJPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.

38

Location

Appraisal ValueBook Valueas of December 31,
as of December 31,
2017
2017
(thousands of yen)(thousands of yen)
(Note 1)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

1-8 Honcho 4-chome, Kawaguchi, Saitama
3-5 Matsugaya 1-chome, Taito-ku, Tokyo

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

Real estate

2,947,358

4,500,000

Beneficiaryinterest

2,871,089

3,810,000

Real estate

5,285,692

8,500,000

Real estate

5,447,258

6,510,000

Japan Prime Realty Investment Corporation

Area Type

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

RetailGreater Tokyo

OfficeOlinas Tower

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

OfficeOther Cities

Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
Benetton Shinsaibashi Bldg.
RetailJPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

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

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-come, Saitama, Saitama

8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka

1-19 Matsuyama 1-chome, Naha, Okinawa

7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, Osaka
16-7 Chayamachi, Kita-ku, Osaka, Osaka

2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo
2-19 Chayamachi, Kita-ku, Osaka, Osaka

Form ofOwnership
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2017
2017
(thousands of yen)(thousands of yen)
(Note 1)
27,560,889

36,800,000

6,850,973

8,260,000

5,837,422

8,380,000

7,306,941

12,500,000

Real estate

1,713,512

2,800,000

Real estate

7,027,771

5,740,000

3,698,374

4,290,000

13,436,801

16,500,000

1,628,134

2,230,000

4,036,583

3,470,000

2,935,440

3,400,000

1,325,782

1,720,000

2,442,218

3,950,000

1,324,856

1,590,000

2,079,142

2,930,000

2,171,405

3,000,000

Real estate

3,876,818

2,890,000

Real estate

10,494,923

16,200,000

Real estate
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest

5,093,167

4,240,000

12,423,055

13,900,000

6,175,689

7,260,000

6,039,432

7,120,000

412,586,234

476,050,000(Note 1) 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.”(Note 2) The location of FUNDES Suidobashi is based on the latest indication after the name of the town was changed as of January 1, 2018.

3939

Asset Management Report

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

OfficeOfficeOfficeRetailOther Cities

RetailGreater Tokyo

RetailCentral Tokyo

OfficeCentral Tokyo

Area Type

4040

Property Name

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

31st Fiscal Period
32nd Fiscal Period(from Jan. 1, 2017 to Jun. 30, 2017)(from Jul. 1, 2017 to Dec. 31, 2017)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)10
100.0
378,984
2.5
10
100.0
383,0902.5
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
4
100.0
90,9330.6
4100.0
92,4390.6
17100.0
104,567
0.7
17
100.0
108,2150.7
6
100.0
107,3200.7
6
100.0
108,546
0.7
10
100.0
416,318
2.8
10
100.0
438,5312.9
4100.0
124,7450.8
4100.0
146,1821.0(Note 2) (Note 2)
－
－
－
－
－
－
9
93.1
155,862
1.0
10
100.0
161,2321.1
2
100.0
182,0831.2
2
100.0
185,8311.2
25
99.9
362,2742.4
25
99.9
374,9862.5
25
99.5
549,6193.7
25
99.5
585,375
3.9
4100.0
36,7380.2
4100.0
37,0920.2
33
94.1
482,3133.2
32
96.4
494,2083.3
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
58,9980.4
5100.0
63,2470.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)9100.0
250,0251.7
9100.0
252,5771.7
9100.0
192,5981.3
9100.0
209,1301.4
588.1
170,9441.1
6
100.0
172,7811.1
6100.0
275,1031.8
6
100.0
277,6711.8
9100.0
117,4320.8
9100.0
119,746
0.8
2

100.0

1,580,750

10.6

2

100.0

1,580,499

10.4

23
9
57
1
6
1

95.8
100.0
100.0
100.0
86.6
100.0

112,877
177,001
214,856(Note 2)
83,560(Note 2)

0.8
1.2
1.4
(Note 2)0.6
(Note 2)

25
9
57
1
6
1

100.0
100.0
100.0
100.0
86.6
100.0

116,241
181,937
384,049(Note 2)
82,570(Note 2)

0.8
1.2
2.5
(Note 2)0.5
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

7
6
6
36
13
21
44
9
20
1
38
15
14
4
1
1
1
3
29
7
6
44
20
15
14
15
9
－
3
17
8
1
1
6
730

100.0
100.0
100.0
92.2
94.8
98.1
98.7
100.0
100.0
100.0
98.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.6
60.0
99.8
100.0
100.0
100.0
91.4
70.2
－
95.0
99.3
63.4
100.0
100.0
100.0
98.0

205,360
92,990263,156
127,133
117,923
100,344
412,939
179,162
149,765(Note 2)
330,101
1,007,903
294,877
264,538(Note 2)
(Note 2)
(Note 2)
126,996494,602121,293
142,520
149,275
95,780187,198
109,329
98,00988,156
46,835
137,249
456,513
133,421(Note 2)
(Note 2)
160,464
14,907,434

1.4
0.6
1.8
0.9
0.8
0.7
2.8
1.2
1.0
(Note 2)
2.2
6.8
2.0
1.8
(Note 2)
(Note 2)
(Note 2)
0.9
3.3
0.8
1.0
1.0
0.6
1.3
0.7
0.7
0.6
0.3
0.9
3.1
0.9
(Note 2)
(Note 2)
1.1
100.0

8
6
5
39
16
22
44
9
20
1
38
15
14
4
1
1
1
3
29
9
7
44
19
15
14
16
12
－
4
17
7
1
1
5
745

91.3
100.0
93.1
98.2
100.0
100.0
96.2
100.0
100.0
100.0
98.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.5
60.7
100.0
100.0
100.0
96.6
100.0
100.0
－
99.5
99.3
54.5
100.0
100.0
100.0
98.5

214,026
96,156254,146
133,117
127,381104,203419,738
181,432
150,309(Note 2)
327,759
1,017,519
299,221266,825(Note 2)
(Note 2)
(Note 2)
126,996
501,007
120,096105,260
154,043
100,975
188,036
107,460
105,690
107,438－
139,873
470,407
71,126(Note 2)
(Note 2)
170,781
15,141,927

1.4
0.6
1.7
0.9
0.8
0.7
2.8
1.2
1.0
(Note 2)
2.2
6.7
2.0
1.8
(Note 2)
(Note 2)
(Note 2)
0.8
3.3
0.8
0.7
1.0
0.7
1.2
0.7
0.7
0.7
－
0.9
3.1
0.5
(Note 2)
(Note 2)1.1
100.0

Japan Prime Realty Investment Corporation(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg.
and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance withthe lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.
(Note 3) JPR sold Fukuoka Bldg. and JPR Hakata-chuo Bldg. as of April 14, 2017.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above.
There were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of
the 32nd fiscal period.

4141

Asset Management Report

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for currently planned renovations, etc. for JPR-owned real estate and entrusted
real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses include portions that areclassified as expenses in accounting.
Planned (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 32nd
Paid
Fiscal Period

Property Name

Location

PurposeKawaguchi Center
Bldg.
Benetton Shinsaibashi
Bldg.

Kawaguchi City,
SaitamaOsaka City,
Osaka
Sumida Ward,Tokyo
Yokohama City,
Kanagawa
Naha City,
Okinawa

2nd through 6th phases of replacement of air
conditioning units
Renovation work on 1st basement floor and 1st
through 3rd floors
3rd phase of replacement of lighting equipmentwith LED lamps on 6th through 9th floors

Jan. 2018~Mar. 2020

699

－

1

Dec. 2017~Apr. 2018

133

－

－

Jan. 2018~Mar. 2018

62

－

－

Reinforcement of elevators

Jan. 2018~Jun. 2018

60

－

－

Replacement of power receiving andtransforming facilities

Jan. 2018~Jan. 2018

51

－

－

Olinas Tower
Tokyo Tatemono
Yokohama Bldg.
JPR Naha Bldg.

Schedule(2) Capital Expenditures during the 32nd Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 32nd fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting new
tenants. In addition, aside from these constructions, JPR conducted construction of 336 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name

Location

PurposeKawaguchi Center Bldg.

Kawaguchi City, Saitama

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

Olinas Tower

Sumida Ward, Tokyo

GINZA GATES

Chuo Ward, TokyoJPR Hakata Bldg.

Fukuoka City, Fukuoka

Other Properties

Period

1st phase of replacement of air
Jun. 2017~Dec. 2017
conditioning units
Replacement of air conditioning units
on 1st basement floor and 1st throughJul. 2017~Aug. 2017
3rd floors
2nd phase of replacement of lighting
equipment with LED lamps on 4th
Jul. 2017~Oct. 2017
through 17th floors
Replacement of interior fittings on the
Sep. 2017~Nov. 201711th floor
Replacement of major components forDec. 2017~Dec. 2017
rooftop total heat exchangers
Repair of common areas, installation of office automation floors,
replacement of air conditioning units, etc.
Total

Construction
Expenses(millions of yen)
96
79
66
15
14
352
624

(Note) Expenditures for repair and maintenance included 7 million yen of construction management fees paid to construction management companies as well as the amounts
for repair and maintenance constructions themselves.

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

4242(Millions of yen)

28th Fiscal Period(Jul. 1, 2015 Dec. 31, 2015)

29th Fiscal Period(Jan. 1, 2016 Jun. 30, 2016)

30th Fiscal Period(Jul. 1, 2016 Dec. 31, 2016)

31st Fiscal Period(Jan. 1, 2017 Jun. 30, 2017)

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

934

940

936

931

1,075

276

494

393

479

422

270

498

398

335

319

940

936

931

1,075

1,178

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

Item(a) Asset Management Fees (Note)
Fixed compensation

552,616

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

75,000548,466
75,000265,043

267,233(b) Administrative Service and Custodian Fees

77,79380,729(c) Directors' Fee

6,600

Incentive-based compensation 1

212,572

Incentive-based compensation 2

206,232
6,600

31,023(d) Trust Fees

25,511

102,953(e) Other Expenses

100,474

770,987

Total

761,782(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (31st period: 46,000 thousand yen) havebeen paid and included in the book value of each property.

(2) Status of Loans Payable
As of December 31, 2017 JPR has the following loans payable.

Long-Term Loans Payable

Category

LenderDrawdown
Date

Balance as Balance asInterestof Jul. 1,of Dec. 31,
Rate (%)
2017
2017(Note 1)(millions of (millions of(Note 2)yen)
yen)

Repayment
Date

Repayment
MethodMizuho Bank Ltd.

Dec. 5, 2012

2,000

2,000

1.027

Dec. 5, 2019

Mizuho Bank Ltd.

Nov. 27, 2013

3,000

3,000

0.970

Nov. 27, 2020

Mizuho Bank Ltd.

Jun. 27, 2014

5,000

5,000

1.178

Jun. 27, 2023

Mizuho Bank Ltd.

Mar. 11, 2015

2,000

2,000

1.011

Mar. 11, 2024

Mizuho Bank Ltd.

Mar. 24, 2015

2,000

2,000

1.056

Mar. 24, 2025

Mizuho Bank Ltd.

Feb. 4, 2016

5,000

5,000

0.804

Feb. 4, 2026

Mizuho Bank Ltd.

Mar. 30, 2017

3,000

3,000

0.351

Mar. 30, 2021

Mizuho Bank Ltd.

Mar. 30, 2017

4,000

4,000

0.400

Mar. 30, 2022

Mizuho Bank Ltd.

Nov. 21, 2017

－

1,000

0.795

Nov. 19, 2027

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2012

1,000

1,000

1.178

Aug. 8, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2012

1,000

－

0.948

Aug. 8, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sept. 5, 2012

3,000

－

0.919

Sept. 5, 2017 sum repayment

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Dec. 5, 2012

1,000

1,000

1.027

Dec. 5, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Nov. 27, 2013

3,000

3,000

0.970

Nov. 27, 2020

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Jun. 27, 2014

4,000

4,000

0.889

Jun. 25, 2021

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mar. 25, 2016

5,000

5,000

0.510

Mar. 25, 2024

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2017

－

1,000

0.638

Aug. 8, 2025

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sept. 5, 2017

－

3,000

0.593

Sept. 5, 2025

Sumitomo Mitsui Banking Corporation

Dec. 5, 2012

1,000

1,000

1.027

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

Jun. 27, 2013

3,000

3,000

1.265

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

Jun. 27, 2014

2,500

2,500

1.033

Jun. 27, 2022

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

2,000

2,000

0.351

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

Mar. 30, 2017

4,000

4,000

0.400

Mar. 30, 2022

Development Bank of Japan, Inc.

Jun. 26, 2009

2,400

2,300

3.190

Jun. 27, 2019

Development Bank of Japan, Inc.

Jun. 27, 2013

820

820

1.449

Jun. 25, 2021

Development Bank of Japan, Inc.

Dec. 5, 2013

2,000

2,000

1.188

Dec. 3, 2021

Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056

Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15,2016

3,000

3,000

0.843

Jun. 14,2027

Development Bank of Japan, Inc.

Nov. 21, 2017

－

1,000

0.795

Nov. 19, 2027

Shinsei Bank, Ltd.

Apr. 5, 2012

5,000

5,000

1.397

Apr. 5, 2019

Shinsei Bank, Ltd.

Sept. 24, 2013

2,000

2,000

1.076

Sept. 24, 2020

Use

Remarks(Note 3)

Unsecured/
Unguaranteed

Principal lumpon maturity(Note 4)

Principal lump
sum repayment
on maturity

4343

Asset Management Report

Long-Term Loans Payable

Category

LenderDrawdown
Date

Balance as Balance asInterestof Jul. 1,of Dec. 31,
Rate (%)
2017
2017(Note 1)(millions of (millions of(Note 2)yen)
yen)

Repayment
Date

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134

Dec. 5, 2024

Shinsei Bank, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Aozora Bank Ltd.

Dec. 15,2016

1,000

1,000

0.843

Jun. 14,2027

Aug. 29, 2011

5,000

－

1.184

Aug. 29, 2017

Aug. 31, 2015

1,000

1,000

0.873

Aug. 31, 2023

Dec. 15,2016

2,000

2,000

0.633

Dec. 13,2024

Aug. 29, 2017

－

5,000

0.600

Aug. 29, 2025

Repayment
MethodJul. 3, 2012

900

－

0.994

Jul. 3, 2017

Aozora Bank Ltd.

Aug. 8, 2012

2,000

2,000

1.178

Aug. 8, 2019

Aozora Bank Ltd.

Aug. 27, 2012

2,000

－

0.985

Aug. 25, 2017

Aozora Bank Ltd.

Aug. 30, 2012

2,000

2,000

1.146

Aug. 30, 2018 sum repayment

Aozora Bank Ltd.

Sept. 30, 2013

1,000

1,000

1.069

Sept. 24, 2020

Aozora Bank Ltd.

Jul. 3, 2017

－

900

0.625

Jul. 3, 2025

Aozora Bank Ltd.

Aug. 25, 2017

－

1,000

0.534

Aug. 23, 2024

Aozora Bank Ltd.

Aug. 25, 2017

－

1,000

0.574

Feb. 25, 2025

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

3,000

1.076

Feb. 4, 2020

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2017

4,000

4,000

0.309

Mar. 30, 2020

Shinkin Central Bank

Dec. 5, 2013

3,000

3,000

0.689

Dec. 5, 2018

Shinkin Central Bank

Dec. 15,2016

2,000

2,000

0.388

Dec. 14,2021

The Bank of Fukuoka

Sept. 24, 2013

1,000

1,000

0.911

Sept. 24, 2019

The Bank of Fukuoka

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Bank of Fukuoka

Jul. 7,2016

2,000

2,000

0.480

Jul. 7,2026

Meiji Yasuda Life Insurance Company

Jun. 21,2011

3,274

3,208

1.800

Jun. 21,2018

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Feb. 5, 2025

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15,2016

1,000

1,000

0.388

Dec. 14,2021

ORIX Bank Corporation

Feb. 4, 2013

1,000

1,000

0.786

Feb. 5, 2018

ORIX Bank Corporation

Nov. 27, 2013

2,000

2,000

0.762

May 27, 2019Feb. 5, 2018

The Shinkumi Federation Bank

Feb. 4, 2013

3,000

3,000

0.786

Taiyo Life Insurance Company

Jun. 4, 2013

1,000

1,000

0.949

Jun. 4, 2018

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011

Dec. 25, 2020

Taiyo Life Insurance Company

Sept. 24, 2015

1,000

1,000

0.969

Sept. 24, 2024

Chugoku Bank

Sept. 24, 2013

1,000

1,000

0.758

Sept. 25, 2018

Chugoku Bank

Oct. 9, 2015

2,000

2,000

0.816

Oct. 6, 2023

The Norinchukin Bank

Dec. 5, 2014

1,000

－

0.440

Dec. 5, 2017

The Norinchukin Bank

Dec. 15, 2016

2,000

2,000

0.388

Dec. 14, 2021

The Norinchukin Bank

Dec. 5, 2017

－

1,000

0.604

Jun. 5, 2025

Sumitomo Life Insurance Company
National Mutual Insurance Federation ofAgricultural Cooperatives
Sompo Japan Nipponkoa Insurance Inc.

Oct. 11, 2016

2,000

2,000

0.453

Oct. 11, 2024

Dec. 15, 2016

2,000

2,000

0.388

Dec. 14, 2021

Dec. 25, 2015

2,000

2,000

0.759

Dec. 25, 2023

The Hachijuni Bank

Oct. 9, 2015

1,000

1,000

0.489

Oct. 9, 2020

The Hachijuni Bank

Sept. 26,2016

1,000

1,000

0.209

Sept. 24,2021

Resona Bank, Ltd.

Mar. 30, 2017

2,000

2,000

0.438

Sept. 30, 2022

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816

Oct. 6, 2023

The Daishi Bank, Ltd.

Nov. 21, 2017

－

1,000

0.396

Nov. 21, 2022

Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
The Hiroshima Bank, Ltd.

Dec. 27, 2013

1,000

1,000

0.710

Dec. 27, 2018

Dec. 27, 2013

1,000

1,000

0.710

Dec. 27, 2018

Nov. 21, 2017

－

1,000

0.396

Nov. 21, 2022

Sumitomo Mitsui Trust Bank Limited

Mar. 25, 2016

1,000

1,000

0.691

Mar. 25, 2026

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

－

1,000

0.795

Nov. 19, 2027

146,894

151,728

Total

Use

Remarks(Note 3)

Unsecured/
Unguaranteed

Principal lumpon maturity(Note 5)

Principal lump
sum repayment
on maturity(Note 1) 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 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 loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter on the 27th day of every 6 months. In addition, repayment of
2,100 million yen will be made on maturity date June 27, 2019.
(Note 5) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter on the 27th day of every 6 months. In addition, repayment of 3,208
million yen will be made on maturity date June 21, 2018.

4444

Japan Prime Realty Investment Corporation(3) Investment Corporation Bonds
Details of JPR’s investment corpo8ration bonds outstanding as of December 31, 2017 are as follows.
Balance as of
Balance as of
CouponRate
Jul. 1, 2017
Dec. 31, 2017(%)
(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

5,000

－

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds

May 31, 2013

5,000

5,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds

Jul. 22, 2014

2,000

2,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

34,50029,500

Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

(4) Subscription Rights to Shares
Not applicable45
45

Asset Management Report

6. Acquisitions and Sales during the 32nd Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Not applicable(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 32nd fiscal period.

(3) Survey on Values of Specified Assets, etc.
Not applicable(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of special assets or other deals with interested parties and major shareholders were conducted during the 32nd fiscal
period.
2) Value of Fee Expenses
Category

Total Paid Fees(A)

Management Fees (Note 2)

282,359

Outsourcing Fees

599,723

Tenant Brokerage Fees

29,249

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
240,200
Prime Place Co., Ltd.
2,910
Tokyo Tatemono Co., Ltd.
463,498
Prime Place Co., Ltd.
4,502
Tokyo Tatemono Co., Ltd.
4,338

(Thousands of yen)
Ratio to Total
Amount(B/A))
85.1%
1.0%
77.3%
0.8%
14.8%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 14,277 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or major
shareholders during the 32nd fiscal period.
Tokyo Tatemono Co., Ltd.
Prime Place Co., Ltd.

446,741 thousand yen
112 thousand yen

Tokyo Real Estate Management Co., Ltd.

80,800 thousand yen

Shinjuku Center Building Management Co., Ltd.

28,418 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

4646

Japan Prime Realty Investment Corporation

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

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

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

4747

Asset Management Report

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

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

－

40

January 22, 2002 (Note)

60

－

100

Accumulated Total

100

－

100

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

(2) Units Held
Number of Units Held at End
of Period

Ratio to Total Units Issued
and Outstanding (%)

23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

100

20

0.0

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)

100

20

0.0

25th Fiscal Period(Jan. 1, 2014 – Jun. 30, 2014)

100

20

0.0

26th Fiscal Period(Jul. 1, 2014 – Dec. 31, 2014)

100

20

0.0

27th Fiscal Period(Jan. 1, 2015 – Jun. 30, 2015)

100

20

0.0

28th Fiscal Period(Jul. 1, 2015 – Dec. 31, 2015)

100

20

0.0

29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)

100

20

0.0

30th Fiscal Period(Jul. 1, 2016 – Dec. 31, 2016)

100

20

0.0

31st Fiscal Period(Jan. 1, 2017 – Jun. 30, 2017)

100

20

0.0

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

100

20

0.0

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

4848

Total Investment at End of
Period (Note)(millions of yen)Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation Owning Foreign Real
EstateNot applicable
11. Other(1) Notice1) General Meeting of Unitholders
The Eleventh General Meeting of Unitholders of JPR was held on September 5, 2017.
Items approved at the General Meeting of Unitholders are summarized below.
AgendaPartial amendments to the Articles ofIncorporation

Overview
Amendments were made to the following items of the Articles of Incorporation.
(1) (Article 30-1)
With regard to the definition of income related to the total distribution amount for unitholders, amendments to
the Articles of Incorporation were made in order to ensure consistency with the relevant contents of the Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951; including all subsequent amendments)(2) (Article 30-2)
With regard to the issue of inconsistency between profits for accounting purposes and tax purposes at an investment
corporation, amendments to the Articles of Incorporation were made to clearly stipulate that JPR may accumulate,retain or otherwise treat long-term repair reserves, payment reserves, distribution reserves and other similar
reserves and allowances that are recognized to be necessary for maintenance of or increasing the value of assets,in accordance with the revisions to the Ordinance on Accountings of Investment Corporation (Cabinet Office
Ordinance No. 47 of 2006, including all subsequent amendments) and the Act on Special Measures Concerning
Taxation (Act No. 26 of 1957, including all subsequent amendments), etc. (Article 30-2 the current Articles ofIncorporation).

Appointment of one Executive
Officer

Satoshi Okubo was appointed as Executive Officer.

Appointment of one SubstituteExecutive Officer

Yoshihiro Jozaki was appointed as Substitute Executive Officer.

Appointment of two Supervising
Officers

Masato Denawa and Nobuhisa Kusanagi were appointed as Supervising Officers.

Appointment of one SubstituteSupervising Officer

Akihiro Kawaguchi was appointed as Substitute Supervising Officer.

2) Board of Directors of JPR

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 32nd fiscal period.

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

4949

Financial Statements(1) Balance Sheets

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other

End of 31st Fiscal Period(Jun. 30, 2017)

Total current assets

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net

Buildings in trust
Accumulated depreciation*1

Buildings in trust, net

Structures, net

Structures in trust, net

Machinery and equipment, net*1

Machinery and equipment in trust
Accumulated depreciation

Machinery and equipment in trust, net

Tools, furniture and fixtures
Accumulated depreciation

Tools, furniture and fixtures, net

Tools, furniture and fixtures in trust, net

Total intangible assets

Total investments and other assets

Total noncurrent assets

Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets

Total assets

5030

33,265,845

57,592,652(15,005,148)
42,587,503

57,873,121(15,814,180)
42,058,940*190,360,680(31,297,094)
59,063,585

50,400(20,751)
29,649125,868(77,356)
48,512754,459(439,262)
315,197*1*1

757,836(459,233)
298,603

1,711,632(1,305,431)
406,201

1,714,794(1,333,447)
381,347

196,046(128,589)
67,456201,347(136,128)
65,21875,824(42,528)
33,295Tools, furniture and fixtures in trust
Accumulated depreciation

Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses

31,599,817

125,868(74,446)
51,421

Machinery and equipment
Accumulated depreciation

Total property, plant and equipment

20,773,083
12,091,281
247,515
147,209
6,755

49,920(19,449)
30,471

Structures in trust
Accumulated depreciation

Intangible assets
Leasehold rightOther

18,984,868
12,108,948
376,472
121,120
8,407

90,040,896(30,248,556)
59,792,339

Structures
Accumulated depreciation

Land
Land in trust
Construction in progress
Construction in progress in trust(Thousands of yen)

End of 32nd Fiscal Period(Dec. 31, 2017)

106,890,048
189,014,043
366
3,315

87,998(46,364)
41,634*1

106,890,048
189,014,043
248
3,454

399,191,661

397,895,287

14,689,483
1,528

14,689,483
1,463

14,691,012

14,690,947

347,227
60,679396,485
92,819407,906

489,304

414,290,580

413,075,539

126,003
51,925

109,194
36,936

177,929

146,131446,068,327

446,487,515

Japan Prime Realty Investment Corporation

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other

End of 31st Fiscal Period(Jun. 30, 2017)

Total current liabilities

Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust*1

Total noncurrent liabilities
Total liabilities

Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve

Unappropriated retained earnings (undisposed loss)
Total surplus

Total unitholders' equity

Total net assets

Total liabilities and net assets*3(Thousands of yen)

End of 32nd Fiscal Period(Dec. 31, 2017)

1,853,498
21,374,000
10,000,000
673,408
81,184605
163,333
2,733,053－
36,879,083

1,805,561
16,408,000
7,000,000
629,439
81,817605
367,4932,709,394
224

24,500,000
125,520,000
7,756,073
12,802,062

22,500,000
135,320,000
8,031,699
13,013,950

29,002,536*1

170,578,136

178,865,649

207,457,219

207,868,185

231,653,198

231,653,198

73,946284,356

73,946284,356

6,883,962

6,681,774

6,957,909

6,966,131

238,611,107

238,619,329

238,611,107
446,068,327*3

238,619,329
446,487,515

3151

Financial Statements(2) Statements of Income and Retained Earnings

Operating revenue
Rent revenue-real estate
Gain on sale of real estate
Total operating revenue

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

Operating income

Non-operating income
Interest income
Income on settlement of management association accounts
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
Income taxes-current

Total income taxes

Net income

Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

32

52(Thousands of yen)

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

32nd Fiscal Period(Jul. 1, 2017 - Dec. 31, 2017)*1*2

14,907,434
210,738*1

15,141,927－
15,141,927*16,599,215
552,616
77,7936,600
31,023102,953*1

6,810,823
548,466
80,7296,600
25,511
100,474

15,118,172

7,370,203

7,572,605

7,747,969

7,569,322

161
88,589
7,776

167
3,996
3,936

96,527

8,100

682,40944,127
204,596
17,21814,892
13,242640,024
35,927
202,950
16,80814,989296

6,868,008

6,666,426

976,487

6,868,008

605
605

6,867,403

16,5586,883,962

910,996
6,666,426
605
605
6,665,821
15,953
6,681,774

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

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

210,395,598

231,653,198

Issuance of new investment units

21,257,600－

Balance at end of current period

231,653,198

231,653,198

73,94673,946－

210,409－210,40973,946284,356

6,169,462

6,883,962－(6,152,904)
6,867,403(6,657,599)
6,665,821

6,883,962

6,681,774

6,243,409

6,957,909

Unitholders' equity

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

Surplus
Voluntary reserve
Balance at beginning of current period

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

Total changes of items during the period

Balance at end of current period

Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income

Total changes of items during the period

Balance at end of current period

Total surplus
Balance at beginning of current period
Changes of items during the period

Total changes of items during the period

Balance at end of current period

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

Total changes of items during the period

Balance at end of current period

Total net assets
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

21,257,600

714,499

714,499－(210,409)(202,187)

8,222

6,957,909

6,966,131

216,639,008

238,611,107

21,972,099

8,222

238,611,107

238,619,329

216,639,008

238,611,107

21,972,099

238,611,107

8,222
238,619,329

33
53

Financial Statements(4) Statements of Cash Distributions
I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Voluntary reserve
Provision of reserve for reduction entry

IV.

Retained earnings carried forward

Method for calculating distribution amount34

54

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

6,883,962,296 yen
6,657,599,000 yen(7,213 yen)
210,409,484 yen
15,953,812 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,657,599,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) from thebalance of unappropriated retained earnings
after deducting the provision of reserve for
reduction entry pursuant to Article 66-2 of the
Act on Special Measures Concerning
Taxation, to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

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

6,681,774,937 yen
6,666,829,000 yen(7,223 yen)－
14,945,937 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,666,829,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) in an amountnot in excess of unappropriated retained
earnings and to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

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

6,868,008

6,666,426

1,907,957
17,218

1,921,209
16,808Interest expenses
Decrease (increase) in operating accounts receivable

14,892(161)

14,989(167)

887,006(57,196)

842,974
128,957

Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other36,447(26,088)(394,719)
7,613

25,795(44,559)(54,536)
49,777204,159(23,658)

4,787,861(260,933)－(86,133)

13,809,236

9,640,714

Net cash provided by (used in) operating activities
Income before income taxes

Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income

Decrease (increase) in prepaid expenses

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

Decrease in property, plant and equipment in trust
Other, net
SubtotalInterest income received

161

167

Net cash provided by (used in) operating activities(894,320)(593)(842,341)(605)

12,914,482

8,797,934

Purchase of property, plant and equipment in trust
Payments of lease and guarantee deposits(243,199)(355,283)(19,277,371)(49,257)(343,219)(49,257)

Interest expenses paid
Income taxes (paid) refund

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment

Repayments of tenant leasehold and security deposits

Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(86,515)(19,368)

169,740(115,575)

305,489(211,578)

314,145468,011(19,288,034)(205,206)

Repayment of long-term loans payable(7,000,000)
19,000,000－
17,900,000(19,566,000)(13,066,000)

Redemption of investment corporation bonds－
21,212,859(5,000,000)

Net cash provided by (used in) investing activities

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

Proceeds from issuance of investment units
Dividends paid

Net cash provided by (used in) financing activities

Net changes in cash and cash equivalents

Cash and cash equivalents at beginning of current period
Cash and cash equivalents at end of current period*1(6,151,791)－(6,656,178)

7,495,067(6,822,178)

1,121,516

1,770,548

29,972,299

31,093,816

31,093,816*1

32,864,364

35
55

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

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

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

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

3656(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:  Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years basedon the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR uses
the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses related
to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the acquisition 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 to70,461 thousand yen for the fiscal period ended June 30, 2017 and were null for the fiscal period ended December
31, 2017.
Cash and cash equivalents in the Statements of Cash Flows include the following items(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the balance
sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately presented in the balance sheets for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
Revenues and expenses in the Statements of Income and Retained Earnings do not include consumption taxes.

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)

End of 31st Fiscal Period(as of June 30, 2017)
Buildings (net)
Machinery and equipment (net)
Land
Total

End of 32nd Fiscal Period(as of December 31, 2017)

107,690

105,821

2,226

2,054

399,183

399,183

509,100

507,060

Secured liabilities are as follows:(Thousands of yen)
End of 31st Fiscal Period(as of June 30, 2017)
Tenant leasehold and security deposits
Total

End of 32nd Fiscal Period(as of December 31, 2017)15,536

15,536

15,536

15,536

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.

(Thousands of yen)

End of 31st Fiscal Period(as of June 30, 2017)

Credit limit

End of 32nd Fiscal Period(as of December 31, 2017)
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 31st Fiscal Period(as of June 30, 2017)

End of 32nd Fiscal Period(as of December 31, 2017)
50,00050,00037
57

Financial Statements(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)

31st Fiscal Period(January 1, 2017 – June 30, 2017)

32nd Fiscal Period(July 1, 2017 – December 31, 2017)10,460,232
1,580,750
1,689,075
263,619
66,61521,71541,445
14,123,453

10,613,685
1,580,499
1,661,544
264,972
70,57822,47740,767
0,613,685
14,254,525

682,401
6,738
31,569788,587
7,843
35,495

35,11829,850

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents
Common charges
Parking fees
Advertising fees
Antenna usage fees
Other
Subtotal
Other rental revenues
Incidental rent income
Time-based parking fees
Cancellation charges
Income equivalent to expenses for restoration
to original condition

28,152

25,624

Subtotal

783,980

887,402

Total rent revenue-real estate

14,907,434

15,141,927

575,903770,789
2,061,610
25,944
246,252
259,656
578,579
1,907,957
172,521598,343878,8292,044,170
25,895329,320
268,081584,603
1,921,209
160,368

6,599,215

6,810,823

8,308,218

8,331,104

Other miscellaneous income

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)

38

58

Japan Prime Realty Investment Corporation*2. Breakdown of Gain on Sale of Real Estate(Thousands of yen)
31st Fiscal Period(January 1, 2017 - June 30, 2017)

Fukuoka Bldg.
Proceeds from sale of real estate

32nd Fiscal Period(July 1, 2017 - December 31, 2017)

3,100,000
2,984,311
700
114,988－－－－

1,900,000
1,803,549
700
95,750－－－－31st Fiscal Period(January 1, 2017 - June 30, 2017)

32nd Fiscal Period(July 1, 2017 - December 31, 2017)

Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate
JPR Hakata-chuo Bldg.
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate(Notes to Statements of Changes in Unitholders’ Equity)
Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

5,000,000 units

5,000,000 units

923,000 units

923,000 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)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

32nd Fiscal Period(July 1, 2017 - December 31, 2017)

Cash and deposits

18,984,868

20,773,083

Cash and deposits in trust

12,108,948

12,091,281

Cash and cash equivalents

31,093,816

32,864,364

59
39

Financial Statements(Leases)

Future minimum lease payments to be received under non-cancelable operating leases

31st Fiscal Period(Jan 1, 2017 – Jun. 30, 2017)(Thousands of yen)
32nd Fiscal Period(July 1, 2017 - December 31, 2017)

Due within one year

6,404,275

6,079,300

Due after one year

14,758,222

12,497,857

Total

21,162,497

18,577,158(Financial Instruments)

1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management

policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of short-term
funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.

(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.

Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.

Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but the liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby the financial division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments

The fair value of financial instruments, aside from values based on market price, include values based on reasonable calculations
when there is no market price. Certain assumptions are used in calculating those values and there may be cases where the values

will vary when different assumptions are used.

40

60

Japan Prime Realty Investment Corporation

2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the carrying values and fair values as of June 30, 2017 of financial instruments, and the difference between theseamounts. Please note that the following table does not include those for which discerning of fair value is recognized to be extremely
difficult (please refer to Note 3).
Carrying Value(Note 1)

(1)Cash and deposits(2)(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference

18,984,868

18,984,868－

Cash and deposits in trust

12,108,948

12,108,948－(3)

Current portion of long-term loans payable(21,374,000)(21,465,283)

91,283(4)

Current portion of investment corporation bonds(10,000,000)(10,033,000)

33,000(5)Investment corporation bonds(24,500,000)(26,123,941)

1,623,941(6)

Long-term loans payable(125,520,000)(127,268,518)

1,748,518

The following are the carrying values and fair values as of December 31, 2017 of financial instruments, and the difference between
these amounts. Please note that the following table does not include those for which discerning of fair value is recognized to be
extremely difficult (please refer to Note 3)Carrying Value(Note 1)

(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

20,773,083

20,773,083－(2)Cash and deposits in trust

12,091,281

12,091,281－(3)

Current portion of long-term loans payable(16,408,000)(16,481,773)

73,773(4)

Current portion of investment corporation bonds(7,000,000)(7,030,800)

30,800(5)Investment corporation bonds(22,500,000)(24,046,017)

1,546,017(6)

Long-term loans payable(135,320,000)(136,959,541)

1,639,541(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the fair value is approximately the same as the carrying value and is thus stated at thatcarrying value.
(3) Current portion of long-term loans payable, and (6) 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.
(4) Current portion of investment corporation bonds, and (5) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are calculated based on market price and those with no market price are calculated inaccordance with (3) and (6) above.
(Note 3) Financial instruments for which discerning of fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since it is difficult
to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold and security
deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
Category

End of 31st Fiscal Period(as of June 30, 2017)

End of 32nd Fiscal Period(as of December 31, 2017)

Tenant leasehold and security deposits

7,756,073

8,031,699

Tenant leasehold and security deposits in trust

12,802,062

13,013,950

4161

Financial Statements(Note 4) Scheduled redemption of monetary claims to be due subsequent to the 31st fiscal period end (July 30, 2017)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Cash and deposits

18,984,868

－

－

－

－

－

Cash and deposits in trust

12,108,948

－

－

－

－

－

Due after FourYears throughFive Years

Due after Five
Years

Scheduled redemption of monetary claims to be due subsequent to the 32nd fiscal period end (December 31, 2017)(Thousands of yen)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

20,773,083

－

－

－

－

－

Cash and deposits in trust

12,091,281

－

－

－

－

－

(Note 5) Amount of repayment or redemption of investment corporation bonds and long-term loans payable scheduled to be due subsequent to the 31st fiscal
period end (June 30, 2017)(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

10,000,000

2,000,000

4,000,000－－

18,500,000

Long-term loans payable

21,374,000

17,200,000

18,000,000

20,820,000

20,500,000

49,000,000

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment or redemption of investment corporation bonds and long-term loans payable scheduled to be due subsequent to the 32nd fiscal period end(December 31, 2017)(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

7,000,000

4,000,000－－－

18,500,000

Long-term loans payable

16,408,000

17,100,000

21,000,000

19,820,000

14,500,000

62,900,000(Securities)

31st fiscal period (as of June 30, 2017)
Not applicable

32nd fiscal period (as of December 31, 2017)
Not applicable(Derivative Transactions)

31st fiscal period (as of June 30, 2017)
Not applicable as JPR entered into no derivative transactions

32nd fiscal period (as of December 31, 2017)
Not applicable as JPR entered into no derivative transactions

42

62

Due after FourYears throughFive Years

Due after Five
Years

Japan Prime Realty Investment Corporation(Retirement Benefits)

31st fiscal period (as of June 30, 2017)
Not applicable as JPR does not have any retirement benefit plans
32nd fiscal period (as of December 31, 2017)
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

31st Fiscal Period(January 1, 2017 - June 30, 2017)

Effective statutory tax rate
(Adjustment)

32nd Fiscal Period(July 1, 2017 - December 31, 2017)31.74%

31.74%



Deductible cash distributions(30.77%)

Other(0.96%)

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

(31.74%)(Equity Method Income and Retained Earnings)

31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable as JPR does not have any affiliated companies

32nd fiscal period (July 1, 2017 – December 31, 2017)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)

1. Parent Company and Major Corporation Unitholders
31st fiscal period (January 1, 2017 – June 30, 2017)

Not applicable
32nd fiscal period (July 1, 2017 – December 31, 2017)
Not applicable

2. Subsidiaries
31st fiscal period (January 1, 2017 – June 30, 2017)

Not applicable
32nd fiscal period (July 1, 2017 – December 31, 2017)
Not applicable

3. Sister Companies
31st fiscal period (January 1, 2017 – June 30, 2017)

Not applicable
32nd fiscal period (July 1, 2017 – December 31, 2017)
Not applicable

4. Directors and Major Individual Unitholders
31st fiscal period (January 1, 2017 – June 30, 2017)

Not applicable
32nd fiscal period (July 1, 2017 – December 31, 2017)
Not applicable43

63

Financial Statements(Asset Retirement Obligations)

31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable

32nd fiscal period (July 1, 2017 – December 31, 2017)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rental business.
[Related Information]
31st fiscal period (January 1, 2017 – June 30, 2017)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
32nd fiscal period (July 1, 2017 – December 31, 2017)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit or category is in excess of 90% of
operating revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementsof Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on the Statementsof Income and Retained Earnings

44

64

Japan Prime Realty Investment Corporation(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities) and retail properties for leasing in Tokyo and other regions. The following
is the carrying value on the balance sheets, amount of increase (decrease) during the period and fair value of these investment andrental properties.

Carrying Value on the Balance Sheets
Balance at Beginning of Period

31st Fiscal Period(January 1, 2017 - June 30, 2017)(Thousands of yen)

32nd Fiscal Period(July 1, 2017 - December 31, 2017)

401,294,854

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

Fair Value at End of Period

413,882,673

12,587,819(1,296,439)

413,882,673
464,545,000

412,586,234
476,050,000(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease), the amount of increase for the 31st fiscal period is primarily attributable to the purchase of Tokyo Square Garden (18,729,734
thousand yen), and the amount of decrease is primarily attributable to the sale of Fukuoka Bldg. (2,984,311 thousand yen), the sale of JPR Hakata-chuo Bldg.
(1,803,549 thousand yen) and depreciation (1,907,957 thousand yen). Of the amount of increase (decrease) for the 32nd fiscal period, the amount of decrease is
primarily attributable to depreciation (1,921,209 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 31st and 32nd fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)


31st Fiscal Period(January 1, 2017 - June 30, 2017)

32nd Fiscal Period(July 1, 2017 - December 31, 2017)258,516 yen

258,525 yen

7,494 yen

7,221 yen

Total net assets per unit
Net income per unit

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

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

31st Fiscal Period(January 1, 2017 - June 30, 2017)
6,867,403

32nd Fiscal Period(July 1, 2017 - December 31, 2017)
6,665,821－
6,867,403－
6,665,821

916,367 units

923,300 units(Subsequent Events)

Not applicable4565

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

Asset Type

Current Assets

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

Intangible Assets
Leasehold
right
Other
Total

Accumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
July 1, 2017
the Period
the Period
during the2017
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Net Balance as ofDecember 31,
2017(thousands of
yen)

-

-

-

-

-

-

-

57,592,652
49,920280,469480－－

57,873,121
50,40015,814,180
20,751

809,0311,301

42,058,940
29,649754,459

3,377－

757,836459,233

19,971

298,60375,824

12,174－87,99846,364

3,836

41,634

106,890,048－－

106,890,048－－

106,890,048

366

330

448

248

－

－

248

165,363,272

296,831448

165,659,655

16,340,530

834,141

149,319,125

90,040,896

319,783－

90,360,680

31,297,094

1,048,538

59,063,585

125,868－－

125,868

77,356

2,909

48,512

1,711,632

3,162

－

1,714,794

1,333,447

28,016

381,347

196,046

5,301－

201,347

136,128

7,538

65,218

189,014,043－－

189,014,043－－

189,014,043

3,315

2,270

2,131

3,454

－

－

3,454

281,091,801
446,455,074

330,518
627,349

2,131
2,579

281,420,189
447,079,844

32,844,027
49,184,557

1,087,003
1,921,144

248,576,162
397,895,287

14,689,483－－

14,689,483－－

14,689,483

2,602
14,692,086

－
－

－
－

2,602
14,692,086

1,139
1,139

65
65

1,463
14,690,947

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

46

66

Japan Prime Realty Investment Corporation

4) Schedule of Other Specified Assets
Not applicable5) Schedule of Investment Corporation Bonds
Decreaseduring the
Period(thousands ofyen)

Balance as ofDecember 31,
2017(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJuly 1, 2017
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Fourteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

2,000,000－

2,000,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

5,000,000

5,000,000

－

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

2,000,000－

2,000,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

5,000,000－

5,000,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000－

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

2,000,000－

2,000,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

34,500,000

5,000,000

29,500,000

Total

Use

Remarks(Note 2)

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

Investment corporation
bonds

7,000,000

4,000,000--

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

-

47

67

Financial Statements

6) Schedule of Loans Payable
LenderLong-Term Loans Payable (Note 1)
Mizuho Bank Ltd.

Increase
Decrease
Balance as
Balance as ofduringduringof July 1,
December 31,
Current
Current
2017
2017
PeriodPeriod(thousands(thousands of(thousands (thousandsof yen)yen)of yen)of yen)Interest
Rate(Note 2)
(Note 3)

Repayment
Date

1.027%

Dec. 5, 2019

3,000,000

0.970%

Nov. 27, 2020

3,000,000

0.351%

Mar. 30, 2021-

4,000,000

0.400%

Mar. 30, 2022--

5,000,000

1.178%

Jun. 27, 2023

2,000,000--

2,000,000

1.011%

Mar. 11, 2024

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.

2,000,000--

Mizuho Bank Ltd.

3,000,000--

Mizuho Bank Ltd.

3,000,000--

Mizuho Bank Ltd.

4,000,000-

Mizuho Bank Ltd.

5,000,000

Mizuho Bank Ltd.
Mizuho Bank Ltd.

2,000,000-

1,000,000-

1,000,000

0.795%

Nov. 19, 2027

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000-

1,000,000-

0.948%

Aug. 8, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000-

3,000,000-

0.919%

Sept. 5, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.178%

Aug. 8, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000--

3,000,000

0.970%

Nov. 27, 2020

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,000,000--

4,000,000

0.889%

Jun. 25, 2021

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000,000--

5,000,000

0.510%

Mar. 25, 2024

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,000,000-

1,000,000

0.638%

Aug. 8, 2025

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

3,000,000-

3,000,000

0.593%

Sept. 5, 2025

Sumitomo Mitsui Banking Corporation

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

3,000,000--

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation

2,000,000--

2,000,000

0.351%

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation

4,000,000--

4,000,000

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation

2,500,000
2,400,000-

100,000

2,500,000
2,300,000

1.033%
3.190%

Jun. 27, 2022

Development Bank of Japan, Inc.

820,000--

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000--

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000--

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

3,000,000--

3,000,000

0.843%

Jun. 14,2027

Development Bank of Japan, Inc.

-

1,000,000-

1,000,000

0.795%

Nov. 19, 2027

5,000,000--

5,000,000

1.397%

Apr. 5, 2019
Sept. 24, 2020

Development Bank of Japan, Inc.

Shinsei Bank, Ltd.

(Note 5)

Shinsei Bank, Ltd.

2,000,000--

2,000,000

1.076%

Shinsei Bank, Ltd.

2,000,000--

2,000,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.

1,000,000--

1,000,000

0.843%

Jun. 14,2027

Mitsubishi UFJ Trust and Banking
Corporation

5,000,000-

5,000,000-

1.184%

Aug. 29, 2017

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

0.873%

Aug. 31, 2023

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000--

2,000,000

0.633%

Dec. 13,2024

Mitsubishi UFJ Trust and Banking
Corporation-

5,000,000-

5,000,000

0.600%

Aug. 29, 2025

Aozora Bank Ltd.

900,000-

900,000-

0.994%

Jul. 3, 2017

Aozora Bank Ltd.

2,000,000-

2,000,000-

0.985%

Aug. 25, 2017

Aozora Bank Ltd.

2,000,000--

2,000,000

1.146%

Aug. 30, 2018

Aozora Bank Ltd.

2,000,000--

2,000,000

1.178%

Aug. 8, 2019

Aozora Bank Ltd.

1,000,000--

1,000,000

1.069%

Sept. 24, 2020

Aozora Bank Ltd.

-

1,000,000-

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank Ltd.

-

1,000,000-

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank Ltd.

-

900,000-

900,000

0.625%

Jul. 3, 2025

6848

Use

Remarks(Note 4)

Unsecured/
Unguaranteed/Japan Prime Realty Investment Corporation

Long-Term Loans Payable (Note 1)

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2017
2017
PeriodPeriod(thousands of(thousands of(thousands (thousands
yen)
yen)
of yen)of yen)Mizuho Trust & Banking Co., Ltd.

3,000,000-

Mizuho Trust & Banking Co., Ltd.

4,000,000-

Shinkin Central Bank

3,000,000

Shinkin Central BankInterest
Rate(Note 2)
(Note 3)

Repayment
Date-

3,000,000

1.076%

Feb. 4, 2020

0.309%

Mar. 30, 2017--

4,000,000
3,000,000

0.689%

Dec. 5, 2018

2,000,000--

2,000,000

0.388%

Dec. 14,2021

The Bank of Fukuoka

1,000,000--

1,000,000

0.911%

Sept. 24, 2019

The Bank of Fukuoka

2,000,000--

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka

2,000,000--

2,000,000

0.480%

Jul. 7,2026

Meiji Yasuda Life Insurance Company

3,274,000-

66,0003,208,000

1.800%(Note 6)

Meiji Yasuda Life Insurance Company

1,000,000--

1,000,000

1.042%

Feb. 5, 2025

The Nishi-Nippon City Bank, Ltd.

1,000,000--

1,000,000

0.388%

Dec. 14,2021

The Nishi-Nippon City Bank, Ltd.

3,000,000--

3,000,000

0.646%

May 27, 2026

ORIX Bank Corporation

1,000,000--

1,000,000

0.786%

Feb. 5, 2018

ORIX Bank Corporation

2,000,000--

2,000,000

0.762%

May 27, 2019The Shinkumi Federation Bank

3,000,000--

3,000,000

0.786%

Feb. 5, 2018

Taiyo Life Insurance Company

1,000,000--

1,000,000

0.949%

Jun. 4, 2018

Taiyo Life Insurance Company

1,000,000--

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000--

1,000,000

0.969%

Sept. 24, 2024

Chugoku Bank

1,000,000--

1,000,000

0.758%

Sept. 25, 2018

Chugoku Bank

2,000,000--

2,000,000

0.816%

Oct. 6, 2023

The Norinchukin Bank

1,000,000-

1,000,000-

0.440%

Dec. 5, 2017

The Norinchukin Bank

2,000,000--

2,000,000

0.388%

Dec. 14, 2021

The Norinchukin Bank-

1,000,000-

1,000,000

0.604%

Jun. 5, 2025

Sumitomo Life Insurance Company
National Mutual Insurance Federation ofAgricultural Cooperatives
Sompo Japan Nipponkoa Insurance Inc.

2,000,000--

2,000,000

0.453%

Oct. 11, 2024

2,000,000--

2,000,000

0.388%

Dec. 14, 2021

2,000,000--

2,000,000

0.759%

Dec. 25, 2023

The Hachijuni Bank

1,000,000--

1,000,000

0.489%

Oct. 9, 2020

The Hachijuni Bank

1,000,000--

1,000,000

0.209%

Sept. 24,2021

Resona Bank, Ltd.

2,000,000--

2,000,000

0.438%

Sept. 30, 2022

The Iyo Bank, Ltd.

1,000,000--

1,000,000

0.816%

Oct. 6, 2023-

1,000,000-

1,000,000

0.396%

Nov. 21, 2022

Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
The Hiroshima Bank, Ltd.

1,000,000--

1,000,000

0.710%

Dec. 27, 2018

1,000,000--

1,000,000

0.710%

Dec. 27, 2018-

1,000,000-

1,000,000

0.396%

Nov. 21, 2022

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.691%

Mar. 25, 2026-

1,000,000-

1,000,000

0.795%

Nov. 19, 2027

The Daishi Bank, Ltd.

The Yamaguchi Bank, Ltd.
Total

(Note 1)

146,894,000
17,900,000 13,066,000
151,728,000
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(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

16,408,000

17,100,000

21,000,000

19,820,000

Use

Remarks(Note 4)

Unsecured/
Unguaranteed/Due after Four Years
through Five Years(thousands of yen)

14,500,000

The interest rates are rounded to the third decimal place. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
Long-term loans payable are fixed-rate loans payable.
Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.
The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million
yen will be made on the maturity date of June 27, 2019.
The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter every 6 months. In addition, repayment of 3,208 million yen will
be made on the maturity date of June 21, 2018.

69
49

Financial Statements(8) Independent Auditor’s Report50

70Japan Prime Realty Investment Corporation(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
31st Fiscal Period(January 1, 2017 - June 30, 2017)

32nd Fiscal Period(July 1, 2017 – December 31, 2017)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
31st fiscal period (January 1, 2017 - June 30, 2017)
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
Number ofInvestment Units
Held Among Total
Number ofInvestment Units

3.17%

－

Transactions

Transaction
Amount(thousands ofyen)Sale ofbeneficiaryinterest in realestate5,000,000－－

Repayment oflong-term loans
payable4,000,000

Current
portion of
long-termloans payable－

4,000,000

Long-termloans payable

7,000,000

Borrowing of
long-term loans
payableInterest
expenses

29,783

Account

Accruedexpenses

Balance at End
of Period(thousands of
yen)

366

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

32nd fiscal period (July 1, 2017 – December 31, 2017)
Attribute

Asset
CustodianName ofCompany,etc.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

Bankingbusiness andtrust business

Percentage of
Number ofInvestment Units
Held Among Total
Number ofInvestment Units

Transactions

Repayment oflong-term loans
payable－Borrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)

Account

Balance at End
of Period(thousands ofyen)－

Current
portion of
long-termloans payable－－

Long-termloans payable

7,000,000

22,503

Accruedexpenses

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

51
71

Investor Information

Status of Investment Unit Price (as of December 31, 2017)Market capitalization: ¥330.4 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 32nd Fiscal Period: ¥358,000

Low: ¥130,300 (October 28, 2008)

Trading Volume(units)
32,000

Trading Volume (units)

Unit Price(yen)
580,000

Unit Price (yen)28,000520,000

Offer price at additional offering: ¥449,820

24,000460,000

Offer price at additional offering: ¥439,040
20,000400,000

Offer price at additional offering: ¥394,875
16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

Offer price at additional offering: ¥237,160
8,000

220,000

Offer price at IPO: ¥200,000
Offer price at additional offering: ¥194,610

4,000

160,000

Offer price at additional offering: ¥168,1010
100,000
Jun. 14 Jan. 6
Jan. 5Jan. 4Jan. 4Jan. 4Jan. 4Jan. 5Jan. 4Jan. 4Jan. 4Jan. 4Jan. 6
Jan. 5Jan. 5Jan. 4Jan. 4
Jul. 1
Jul. 1
Jul. 1
Jul. 1
Jul. 3
Jul. 2
Jul. 1
Jul. 1
Jul. 1
Jul. 1
Jul. 2
Jul. 1
Jul. 1
Jul. 1
Jul. 1
Jul. 3Feb. 5
2002 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of December 31, 2017)
Other domestic
corporations

Foreign investors

421

210

(3.45%)(1.72%)

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.68%)

12,196

206

Individuals

Foreign investors

38,111 units

231,521 units(4.12%)(25.08%)

Number ofinvestment units
by investor type

Other domestic
corporations

81,335 units(8.81%)

923,000
units

Individuals

Financial institutions(including securities firms)

572,033 units

11,359(61.97%)(93.13%)(Note) The composition ratio is rounded down to the second decimal place.

Annual Schedule (provisional)
December

September

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

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

72

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

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

Introduction to the JPR Website

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

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

Point 1A digest version movie of theanalyst meeting is provided topresent JPR’s latest financial
results, asset management
status, future growth strategies
and other matters.

Point 2 Briefing Sessions and Events
A variety of latest information is delivered, including notices ofbriefing sessions and events for retail investors, JPR’s latest
asset management status and other issues.

Point 2

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

Point 3 Property Overview
Detailed explanations of
JPR’s properties are provided,
including their features,
specifications and revenues
and expenses. The accessroutes to respective properties
from the nearest stations canbe searched by smartphone.
We advise you to use thisfunction when you wish tovisit the properties.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

At least once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant to JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

Contact by Phone

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

Listing

Tokyo Stock Exchange (Securities Code: 8955)

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