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

Twentieth Fiscal Period Business Report

July 1, 2011 - December 31, 2011
Japan Prime Realty Investment Corporation

Corporate Profile
Established on September 14, 2001, Japan Prime Realty Investment Corporation (JPR or theCompany) is a closed-end corporate fund that focuses on a diverse investment portfolio of
office and retail properties. Through its investment activities, JPR has been awarded high credit
ratings from rating agencies, reflecting the Company's high-quality portfolio, earnings stability
and sound financial standing. As of December 31, 2011, JPR had an investment portfolio
totaling 344.98 billion yen on an acquisition basis, 501 tenants and 57 properties, and isrecognized as one of the top diversified REITs in Japan.

Contents
Investment Highlights
Message to Our Unitholders
The Appeal of JPR ~Initiatives to Achieve Sustainable Growth~
Account Highlights
Investment Unit Status
Portfolio Topics
Property Portfolio
New Acquisitions during the 20th Fiscal Period and After
Overview of Portfolio Properties
Characteristics and Corporate History
Members of the Board
Overview of the Asset Manager
Directors of Tokyo Realty Investment Management, Inc.
Overview of Asset Management
Overview of the Investment Corporation
Status of JPR's Assets under Management
Capital Expenditures of Owned Real Estate
Expenses and Liabilities
Acquisitions and Sales during the 20th Fiscal Period
Overview of Accounting
Overview of Investment Trust Beneficiary Certificates of JPR
OtherBalance Sheets
Statements of Income and Retained Earnings
Statements of Unitholders' Equity
Notes to Financial Statements
Report of Independent Auditors
Statements of Cash Flows (Information Only)
JPR Investment Policies
Investor Information

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1

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

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

Targets
Asset size exceeding 500 billion yen
Raise cash distribution per unit2Message to Our Unitholders
Thank you for your continued loyal patronage of Japan Prime Realty Investment Corporation (JPR).
We at JPR would like to express our sincere condolences to all those affected by the Great East Japan
Earthquake, and wish for the expedient recovery of the affected areas.
As we have settled the 20th fiscal period (July 1, 2011 – December 31, 2011), allow us to provide you, ourunitholders, with an overview of the asset management and financial results of JPR for the period.
First, in terms of the portfolio, JPR newly acquired Ginza Sanwa Building, an office building located in acentral business district of Tokyo, at an acquisition price of 3.4 billion yen. The purchase expanded JPR’s
portfolio to 57 properties or 344.9 billion yen on an acquisition price basis as of the end of the 20th fiscal
period, adding one property compared to the end of the previous fiscal period.
Second, in financing, JPR spent another fiscal period continuing to secure a stable financial standing byconducting fund procurement with consideration given to a further shift to fixed-rate borrowings and thediversification of repayment and redemption dates, etc. Moreover, JPR repaid its sole secured loan before
maturity in the 20th fiscal period, leaving all of its outstanding interest-bearing debt (totaling 163.0 billion
yen at the end of the period) unsecured and unguaranteed.
As for the financial results of the 20th fiscal period, rental revenues and other earnings increased periodon-period due to such factors as the new property added to the portfolio and a rise in the occupancy rates
of existing properties. This led JPR to post 11,772 million yen in operating revenue, 4,201 million yen in
ordinary income and 4,200 million yen in net income.
As a result, the cash distribution per unit for the 20th fiscal period came to 5,876 yen.
JPR will continue working with Tokyo Realty Investment Management, Inc., our asset management company,
to realize stable growth of our portfolio over the medium to long term by conducting prudent and solid
asset management. With these efforts and commitment, we are dedicated to meet the expectations of ourunitholders.
We ask for your continued understanding and support of our operations.

Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation
3

The Appeal of JPR~Initiatives to Achieve Sustainable Growth~
Japan Prime Realty Investment Corporation (JPR), listed on the Tokyo Stock Exchange on June 14, 2002, hasinvested primarily in superior office buildings and retail properties located in thriving commercial areas with thebasic concept of “investing in urban commercial real estate.”
In this section, let me highlight JPR’s initiatives on the two subjects of “environmental” and “governance,” inorder to help our unitholders comprehend JPR in more detail.
Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation

JPR’s “Environmental” and “Governance” Initiatives
Q: Recently we often hear “environment” and “governance” discussed. What are JPR’s initiatives
in these areas?
Kaneko: First, as our “environmental” initiatives, JPR acquired DBJ Green Building Certification
for its Olinas Tower and JPR Sendagaya Building portfolio properties from the Development
Bank of Japan (DBJ). Moreover, JPR was ranked third among listed companies in Asia in theinternational survey on environmental responses of real estate business operators conducted by
GRESB*1, which comprises representative European pension funds and other entities. As theseshow, JPR is proactively engaged in “environmental” friendliness.
As for “governance,” which has been covered in recent years in newspapers and other media,
JPR has consistently positioned reinforcement of “governance” as one of the most important
themes for sound and efficient operations. As such, we worked to establish its governancesystem as we prepared for the listing of JPR.
“Environmental” and “governance” initiatives may look unrelated at a glance. However, we
believe that both are indispensable for realizing sustainable growth and should eventuallycontribute to enhancing unitholder value over the medium to long term.
Q: What is JPR’s stance on
implementing “environmental”
initiatives?
Kaneko: Tokyo Realty
Investment Management, Inc.
(TRIM), the asset manager ofJPR, participated in a European
environmental conference in
2011.
Despite market conditions
continuing to worsen and many
hedge funds withdrawing theirinvestments from the capital
market, TRIM was amazed at
the predominant presence of
ESG funds and their strong
willingness to invest.
The ESG funds are funds
engaged in responsible

4

DBJ Green Building

Silver
DBJ Green Building

DBJ Green BuildingGold

SilverOlinas Tower

DBJ Green Building
JPR Sendagaya
Building

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

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

investments*2, as represented by their initials that come from Environment, Society andGovernance.
The thinking of ESG investment, developed in Europe, matches the trend of the times in which
the social responsibility of investors is taken over and appropriately implemented by the funds.
Conventionally, the “environment,”“society” and “governance” were, if anything, negative factors for corporate finance, and related
expenditures were often perceived as costs.
However, a new trend is being formed in which ESG investment is given additional marks when
determining investments. This is because experts increasingly share the view that there is acorrelation between “ESG considerations” and “management performance,” and because of the
viewpoint that such institutional investors as public and corporate pension funds should takesocial responsibility.
Other factors include the increase in shareholder (unitholder) activists and the heightened
environmental consciousness.
Accordingly, asset management that gives consideration to ESG is expanding, and becoming
established as a judgment criterion.
Q: Are there similar movements seen in Japan?
Kaneko: In Japan, DBJ launched the DBJ Green Building Certification System in April 2011.
The system selects superior real estate that meets the demands of the times, with the objectiveof promoting properties (“Green Buildings”) that are environmentally friendly, equipped
to mitigate disaster and prevent crime, as well as meet the various social requirements
surrounding real estate from stakeholders, and grant certifications of Platinum, Gold, Silver andBronze in accordance with the degree of considerations. In addition, receiving the certification
allows expectations for support from DBJ in terms of financing needs for such purposes as realestate development, property acquisitions and renovations.
■ Properties that acquired DBJ Green Building Certification
JPR acquired Gold certification, the first achievement among J-REITs, for Olinas Tower, andSilver certification for JPR Sendagaya Building, in August 2011.
Q: What is the role the asset manager should take in “environmental” initiatives?
Kaneko: As mentioned earlier, JPR was ranked third among listed companies in Asia in the
GRESB survey that analyzes and evaluates the sustainability of real estate funds, etc. from theviewpoint of their environmental friendliness and social nature.
In our view, the high evaluation was achieved in the survey as JPR has established a consistentsystem among all related parties involved in building operations, from TRIM to property
management companies and building maintenance companies, under a clear environmental
policy. Furthermore, such initiatives have been steadily implemented to reduce energy
consumption with the cooperation of tenants.
Moreover, unique to TRIM, it entrusted operations related to environmental laws andregulations to one of its sponsors, Tokyo Tatemono Co., Ltd., and promptly established a system
to be provided with know-how and advice.
Along with advice, TRIM promotes environmental measures by allocating dedicated staff to thesection that conducts portfolio construction planning, which is rather a rare organization amongasset management companies, based on the technological know-how of Taisei Corporation, asponsor company.
I think the role and the scope of the asset manager has been expanding in these respects.
Q: “Governance” may sound difficult to understand. Do you have any characteristic governancestructure that is special to JPR?
Kaneko: The asset management of “investment corporations,” including JPR, is conducted by
entrusting such services to asset management companies, which have close relationships with5

their sponsor companies (shareholders). Such relationships allow for building on the strengthsof respective sponsor companies. On the other hand, if the sponsor companies become too
influential, priority might be placed on the interest of the sponsor companies rather than theinterest of investment corporations, causing disadvantages to the investment corporations
and their unitholders. This is called conflicts of interest. For sound and efficient operations ofinvestment corporations, it is particularly important to prevent disadvantages to unitholders.
To that end, JPR has worked to build a compliance structure as a vital issue, so that sound andefficient operations can be promised to unitholders.
As specific measures, the Executive Officer and Supervising Officers of JPR do not haveany concurrent position at TRIM, the asset manager. The independence of JPR is enhanced
by selecting human resources with high expertise, such as attorneys and certified public
accountants, from outside. I am no exception. These measures work to reinforce our checking
function over the asset manager, and realize sound and efficient operations of JPR.
Q: Is it true that TRIM, the asset manager, also has a characteristic structure?
Kaneko: At present, TRIM has five sponsor companies and receives support from them in terms
of properties, human resources and information, etc. taking advantage of their respective
strengths. As mentioned before, TRIM has close relationships with the sponsor companies. On
the other hand, care has been given through the diversified shareholding composition for the
independence as an asset manager.
In addition, Satoshi Okubo, President of TRIM, is not seconded from a sponsor company but
rather assumed his position after transferring to TRIM. The general manager position of theCompliance Office, which is in charge of internal control, is assumed by a career employee*3.
For other employees, thepercentage of career employees
has risen significantly compared
TRIM Shareholder Composition
with that upon inception. As
these show, focus is placed on thereal estate
independence as an asset manager
in terms of the human resources
structure as well.
Tokyo Tatemono
Such a system designed toconstruction
real estate
secure the independence of the% of ownershipasset manager from its sponsor
companies also contributes to theTaisei Corporation
Yasuda Real Estatesound and efficient operations of
JPR.
% of ownership% of ownership

40

20

20

Q: Can you tell us about thecharacteristics special to JPR in its
approach to important businessdeals conducted with the sponsor
companies, which could actually
generate issues in terms ofconflicts of interest?
Kaneko: At TRIM, the Compliance
Committee screens andinvestigates the validity andrationality of important businessdeals conducted with the sponsor
companies, on top of the decisions
made by the Board of Directors,
the Investment Committee andother institutions concerning

6

financefinance

Sompo Japan Insurance

Meiji Yasuda Life Insurance

10% of ownership

10% of ownership

Support is provided in terms of properties, human resources, information, etc.
taking advantage of the strengths of respective sponsor companies

JPR Board Members
Executive Officer:

Hirohito Kaneko(attorney)

Supervising Officer:

Sosuke Yasuda(certified public accountant)

Supervising Officer:

Masato Denawa(attorney)

The Board of JPR comprises experts(attorneys and a certified public accountant)
who have various experiences.
They constitute high-quality governanceby taking advantage of their expertise inrespective areas in order to operate JPR in asound and efficient way.

ordinary business deals. The Compliance Committee has a special member who is an outside
attorney, and employs an unanimous voting system, not a majority voting system, for approvals.
Moreover, JPR requires prior approval of deals by the Board which is comprised of officers whoare independent of TRIM, the asset manager.
As such, it is a characteristic of JPR that, concerning important business deals conducted withthe sponsor companies where issues could occur in terms of conflicts of interest, monitoring is
conducted through checks (screening/investigating and prior approval) from inside and outside
the asset manager to secure sound and efficient operations.

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

Investment Management Division
General Manager

Financial Division General Manager

Compliance Office General Manager

Special Member (outside attorney)

The Compliance Committee is held byinviting an attorney from outside thecompany as a special member. As a rule,
the Committee employs an unanimous
voting system rather than a majority voting
system.

Q: Will JPR keep on going in these initiatives?
Kaneko: As stated earlier, the “environment,” “society” and “governance” were conventionallynegative factors, if anything, and expenditures on them were often simply perceived as costs.
However, in real estate investment, it has become essential to create a structure that enables theachievement of sustainable growth. The era when our ability or inability to conduct appropriate
measures for such will affect the decisions of investors.
Investment Corporations like ourselves invest in real estate and earn revenues from properties
under management, and distribute profits to unitholders.
Generally speaking, real estate investment is conducted over the medium to long term, and webelieve real estate plays a role as part of social infrastructure.
We will continue working with TRIM, to which we entrust asset management, to realize stable
growth of our portfolio over the medium to long term, so that we can meet the expectations of
our unitholders.

*1 GRESB: This stands for the Global Real Estate Sustainability Benchmark, a benchmark to analyze and evaluatesustainability of real estate companies, REITs and private placement real estate funds in terms of their environmental
friendliness and social nature. Furthermore, the group that conducts the survey is also called GRESB.
2
* Responsible investment: This refers to investment that takes ESG into account, pursuant to the Principles for Responsible
Investment prepared jointly by the United Nations Environment Programme Finance Initiative and the United Nations
Global Compact.
*3 Career employee: This refers to a regular employee, not an employee seconded from a sponsor company, in this context.

7

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

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

18th Fiscal Period
ended
December 2010

19th Fiscal Period
endedJune 2011

20th Fiscal Period
ended
December 2011

Operating revenues

11,493

12,314

11,87011,529

11,772

Ordinary income

4,333

4,964

4,039

4,075

4,201

Net income

4,332

4,963

4,039

4,010

4,200

Total cash distributions

4,333

4,840

4,061

4,011

4,201

Total assets

332,380

358,339

360,904

360,004

360,699

Total unitholders' equity

161,058

176,303

175,502

175,452

175,640

48.5

49.2

48.6

48.7

48.7

Unitholders' equity per unit (yen)257,693

246,578

245,458

245,387245,651

Cash distribution per unit (yen)

6,933

6,770

5,680

5,611

5,876

Equity ratio (%)

Operating Revenues and Net Income

Total Assets and Total Unitholders' Equity

400,000

15,000Cash Distribution per Unit

8,000

350,000
12,000300,000

6,000

250,000

9,000

200,000
6,000

4,000

150,000

100,000

2,000

3,000
50,000

0

8

16th
17th
18th
19th
20th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

0

16th
17th
18th
19th
20th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Operating revenues (million yen)

Total assets (million yen)

Net income (million yen)

Total unitholders' equity (million yen)

0

16th
17th
18th
19th
20th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Cash Distribution (yen)Investment Unit Status
Historical Unit Price
Trading
Volume32,00028,00024,000Unit
Price

Trading Volume (units)
Unit Price (yen)As of February 6, 2012
Market capitalization: ¥130.3 billion
High: ¥564,000 (May 7, 2007)
Low: ¥130,300 (October 28, 2008)
Unit price at end of 20th Fiscal Period:¥181,300 ( December 30, 2011 )

580,000
520,000
POOﬀering: ¥449,820

460,000

20,000400,000

16,000340,000

12,000POOﬀering: ¥237,160

ListedTokyo Stock ExchangeOﬀering: ¥200,000

8,000

0

Ju
Ja
J
n.
ly
ne uly
6,
1
14 1
2
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00
00
3
2

Ja

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5,

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20

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04

1

Ja

n.

4,

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20

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05

1

280,000
220,000

POOﬀering: ¥168,101

4,000
Ju

PO
Oﬀering: ¥272,440

Ja

n.

4,

Ju
20

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06

1

Ja

n.

4,

Ju
20

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07

1

Ja

n.

4,

Ju

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20

08

1

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160,000

n.

5,

Ju
20

ly

09

1

Ja

n.

4.

Ju
20

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10

1

Ja

n.

4,

Ju
20

ly

11

1

Ja

100,000

Fn. eb.
4, 6
20
12(Note) Unit prices are based on closing prices.

Breakdown of Unitholders at End of Period
Units

700,000
625,000 units
600,000

8.08%
50,560 units

715,000 units

715,000 units

715,000 units

715,000 units

7.56%
54,073 units

7.44%
53,251 units

7.33%
52,430 units

7.34%
52,482 units

11.58%
82,846 units

11.55%
82,627 units

11.46%
81,973 units

11.74%
83,982 units

Number ofUnitholders
28,00024,00012.35%
77,207 units
500,000

400,000

20,00026.43%
165,224 units

28.81%
206,019 units

27.97%
200,030 units

25.27%
180,711 units

25.37%
181,443 units

300,000

200,000

12,00053.12%
332,009 units

52.03%
372,062 units

53.01%
379,092 units

55.91%
399,886 units

55.53%
397,093 units

100,000

0

16,000

8,000

4,000

16th Fiscal Period

17th Fiscal Period

Financial Institutions(including securities ﬁrms)

18th Fiscal Period

ForeignInvestors

19th Fiscal Period

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

Individuals

20th Fiscal Period0

Number of Individual
Investors

9

Portfolio Topics
Portfolio Growth
Occupancy rate (%)

100.0

90.0
Total acquisition priceTotal leasable floor space

Total acquisition
price (billion yen)

400
350
300
250
200
150
100
50

0

End ofNov.
2001

Total acquisition
price (billion yen)
Total leasable
floor space (m2)

End of
Jun.
2001

40.73

End of
Dec.
2002

92.18

94.59

End ofJun.
2003

End ofDec.
2003

125.79End ofJun.
2004

139.64163.65End ofJun.
2005

179.62End ofDec.
2005

197.65End ofJun.
2006

202.66End ofDec.
2006

209.22222.4894,935.49 162,734.50 168,987.78 201,808.72 218,734.67 256,329.13 273,330.52 281,408.97 308,205.26 315,156.84 337,382.05

Occupancy rate
(%)

96.3

94.1

93.4

93.5

92.7

93.2

95.1

95.4

97.2

98.0

98.6

Properties

13

25

27

30

32

38

42

42

42

44

46

Total numberof tenants

133

281

311

324

357

437

496

459

441

462

479

(Note 1)

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

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

Portfolio Diversification by Region
Value breakdown by acquisition price

16.9%(¥58,227 million)

Greater Tokyo

33.7%

Tokyo CBDs

Value breakdownby monthly rental revenue at period end
Other Cities

Other Cities
Tokyo CBDs

49.4%(¥170,526 million)(¥116,231 million)

18.3%(¥341 million)

Greater Tokyo

Tokyo CBDs

42.7%

Other Cities

Tokyo CBDs

(110,427.39 m2)(122,216.47 m2)

27.2%

42.7%

(173,664.03 m2)

Office buildings

Value breakdownby monthly rental revenue at period end

Office buildings

72.4%(¥249,784 million)

Retail properties
Value breakdownby leased floor space at period end

Retail properties

25.8%(¥482 million)

30.1%

Greater Tokyo

39.0%

Retail properties

Retail properties

27.6%

Other Cities

Value breakdownby leased floor space at period end(¥728 million)

Value breakdown by acquisition price(¥95,200 million)

Greater Tokyo(¥796million)

Portfolio Diversification by Asset Class

10

End ofDec.
2004

Office buildings

74.2%(¥1,384 million)

39.3%(159,790.16 m2)

Office buildings

60.7%(246,517.73 m2)

Total leasable
floor space (m2 )

480,000
420,000
360,000
300,000
240,000
180,000
120,000
60,0000

End ofJun.
2007

End ofDec.
2007

End ofJun.
2008

End ofDec.
2008

End ofJun.
2009245.39251.90275.10280.61

299.41

310.61331.28341.58341.58344.98361,574.77

373,609.99

383,491.03

383,215.57

393,532.31

400,751.87

410,326.04

420,544.51

421,371.51

423,311.93

99.0

98.4

97.5

96.4

96.8

96.4

95.5

93.5

94.7

95.6

48

49

50

52

51

53

55

56

56

57

491

517

537

499

476

476

460

479

493

501

End ofJun.
2010

End ofDec.
2009

End ofJun.
2011

End ofDec.
2010

End ofDec.
2011(Note 3) The tenants of Shinjuku Center Building, Rise Arena Bldg. and Kawasaki Dice Building have sublet space to a sub-lessee and a lease agreement has been executed where therent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the total leasable floor space, total leased floor space and occupancy rate
entered for these buildings are the figures concerning the sub-lessee of the tenant and the number of sub-lessees is deemed to be the number of tenants.
(Note 4) In the event that the contracted area and the area based on which the rent is calculated differ, the situation was handled by making the latter the leased floor space through thefiscal period ended December 2006. Since the period ended June 2007, the contracted area has been made the leased area.

Major Tenants#
1(As of December 31, 2011)

TenantName of Property

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

ABC Development Corporation

Housing Design Center Kobe

35,444.13

8.7%

2

Tokyo Tatemono Co., Ltd.

Shinjuku Square Tower 1
Shinjuku Square Tower 2
Shinjuku Center Bldg.
Kawasaki Dice Bldg.

33,213.32

8.2%

3

The Seiyu, Ltd.

Tanashi ASTA

31,121.71

7.7%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.9%

5The Loft Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.6%

6

Olympic Corporation

Musashiurawa Shopping Square

9,558.51

2.4%

7

Tower Records Japan, Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

2.0%

8Sompo Japan Insurance Inc.

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

7,754.19

1.9%

9

Yuraku Real Estate Co., Ltd.

Rise Arena Bldg.

6,023.39

1.5%

10

The Maruetsu, Inc.

Cupo-la Main Bldg.

5,963.00

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

11

Property Portfolio

A Tokyo CBDs

Ueno

Shinjuku Ward

A-14
A-11

Shinjuku

A-12
A-4

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

A-3
A-18

Shibuya

Tamachi

A-15

A-6

Shinagawa

GotandaA-7

A-10

Ohsaki

A-16

Shinagawa Ward

B-5

A-1
A-2
A-3
A-4
A-5

name) (land with land leasehold)
JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Kawaguchi

B-6
B-3

SAITAMA

B-8

A-16 Shinagawa Canal Bldg.
A-17 Rokubancho Bldg.
A-18 JPR Harajuku Bldg.
A-19 Tokyo Tatemono Kyobashi Bldg.
A-20 JPR Nihonbashi-horidome Bldg.
A-21 JPR Sendagaya Bldg.
A-22 Ginza Sanwa Bldg.
A-23 Otemachi 1-6 Plan (tentative

Minamiurawa

Musashiurawa

TOKYO
Tanashi

Kinshicho

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

Minato Ward

A-2

Greater Tokyo

A-20
A-3

Tokyo
A-13
A-23
A-1
A-22 A-8
A-2
A-19
A-5 Chuo Ward

Harajuku

A-1

B-1 B-11

Ichigaya

A-21

Shibuya WardB

B-7

Ikebukuro

B-1

CHIBA

B-9 Ueno
B-7

Shinjuku

Tachikawa

Tokyo

B-11
B-1

Kinshicho

Shibuya
Chiba

ShinagawaB-2

Musashikosugi

B-4
KANAGAWA

Kawasaki

B-5
B-12
B-10
12

Musashikosugi(New Station)

B-6

Shin-Yokohama
Yokohama
Nihon-Odori

B-3

Kamiooka

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

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

C Other Cities
C-1

Niigata Ekinan Center Bldg.

C-7

JPR Hakata Bldg.

C-9

JPR Naha Bldg.

C-12 Sompo Japan Sendai Bldg.
C-13 Sompo Japan Wakayama Bldg.
C-14 Tenjin 121 Bldg.
C-18 JPR Hakata-chuo Bldg.
C-19 JPR Nagoya Fushimi Bldg.
C-4

Housing Design Center Kobe

SENDAIC-12

NIIGATA

C-1

OSAKA
See below
KOBE

C-4

FUKUOKA

C-7
C-14
C-18

NAGOYA

C-19

WAKAYAMA

C-13

NAHA

C-9

C

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

Chiyoda Ward
Chuo Ward
Minato Ward

Osaka

Tokyo CBDs

C-17

Shinjuku Ward
Shinagawa Ward
Shibuya Ward

Kitahama

Yodoyabashi

All other areas of Tokyo

C-4

Greater Tokyo

and Chiba, Kanagawa andSaitama Prefectures

HonmachiC-4

Tokyo Tatemono Honmachi Bldg.

C-17 JPR Dojima Bldg.
C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.

C-3
Shinsaibashi

Nanba

Other Cities

All other areas in Japan

13

Location
Category

Tokyo
CBDs

Asset
Class

No.

OfficeA-1

Kanematsu Bldg.

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

1989.122001.11

OfficeA-4

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

1984.10

OfficeA-5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

1999.92002.6

OfficeA-6

MS Shibaura Bldg.

Minato Ward, Tokyo

1988.2

2003.3

OfficeA-7

Gotanda First Bldg.

Shinagawa Ward, Tokyo

1989.7

2003.7

OfficeA-8

Fukuoka Bldg.

Chuo Ward, Tokyo

1990.5

2003.10
2005.4

OfficeA-9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

1989.3

2004.5

OfficeA-10

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo

2001.6

2004.6

OfficeA-11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

1994.10

2004.72008.9

OfficeA-12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1985.4

2004.112005.42010.7

OfficeA-13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

1994.6

2004.11

OfficeA-14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1979.10

2008.3

Office

A-15

Minami Azabu Bldg.

Minato Ward, Tokyo

1992.6

2008.7

Office

A-16

Shinagawa Canal Bldg.

Minato Ward, Tokyo

2008.72008.12

OfficeA-17

Rokubancho Bldg.

Chiyoda Ward, Tokyo

1991.10

2009.12

OfficeA-18

JPR Harajuku Bldg.

Shibuya Ward, Tokyo

1989.32009.12

Office

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo Ward, Tokyo

1981.1

2010.2

OfficeA-20

JPR Nihonbashi-horidome Bldg.

Chuo Ward, Tokyo

2002.6

2010.3

OfficeA-21

JPR Sendagaya Bldg.

Shibuya Ward, Tokyo

2009.52010.5

OfficeA-22

Ginza Sanwa Bldg.

Chuo Ward, Tokyo

1982.10

2011.8RetailA-1

JPR Shibuya Tower Records Bldg. Shibuya Ward, Tokyo

1992.2

2003.6

RetailA-2

JPR Daikanyama

Shibuya Ward, Tokyo

2002.7

2004.10RetailA-3

JPR Jingumae 432

Shibuya Ward, Tokyo

2006.2

2006.3Retail

A-4

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

2007.1

2007.32008.4RetailA-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda Ward, Tokyo

2007.10

2008.8Property Name

Location

Completed Acquired

Subtotal (27 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA
do not include the residential portion and ratio for Yume-ooka Office Tower is that for the business tower only.

14

2001.11
2002.112004.11(As of December 31, 2011)

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

Ownership(3) (%)

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

Site Area(m2)

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

16,2764.7

79.4

1,751.13

7,994.0295.0

8

360,986

2,874

0.8

79.4

679.06

2,291.13

100.0

185,485

2,100

0.6

100.0

550.062,804.56

45.9

272,595

95.7
67.4
0.0

7
2
0

77,31820,275
12,180

2,420

0.7

77.2

657.802,107.58
901.36312.533,321.47

4,000

1.2

100.0

636.903,265.34

94.9

8

126,701

11,2003.2

58.0

8,992.18

14,470.72

93.2

7518,125

2,920

0.8

59.6

1,551.19

4,243.58

100.0

2135,793

100.0
100.0

1
0

87,35633,983

2,920

0.8

26.2

1,302.17

1,250.06
687.34
1,937.40

5,100

1.5

100.0

1,058.04

4,224.96

100.0

9

170,841

3,500

1.0

23.9

4,006.00

4,088.44

100.0

3

187,256

10,1803.0

38.8

8,409.52

10,982.03
168.75
11,150.78

99.1
99.1

23
0

190,741
2,930

15,121

4.4

100.0

3,522.46

15,237.87

97.3

24

506,640

710

0.2

35.5

858.481,253.39

100.0

433,39021,000

6.1

8.6

14,917.11

8,861.34

87.5

22

470,795

3,760

1.1

100.0

778.093,405.73

100.0

1(Note 5)

1,870

0.5

45.6

828.821,700.57

100.0

468,100

2,800

0.8

100.0

716.952,488.36

100.0

1(Note 5)

8,400

2.4

100.0

1,205.07

4,760.09

88.5

7

223,144

5,250

1.5

100.0

547.103,499.31100.02(Note 5)

5,100

1.5

100.0

937.595,299.86

100.0

7

198,390

15,0504.4

100.0

2,217.49

6,177.74

89.9

5

268,841

3,400

1.0

26.6

1,119.27

1,899.27

98.4

874,32512,0003.5

100.0

1,010.47

8,076.85

100.0

1345,576

2,160

0.6

100.0

277.12651.29100.0

438,849

4,275

1.2

100.0

198.101,027.33

89.8

5

69,145

2,740

0.8

12.5

2,578.69

2,347.81

100.0

174,498

3,400

1.0

1.9

6,808.12

1,101.92

100.0

1(Note 5)

170,526

49.4

―

―

127,581.13――

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

15

Location
Category

Greater
Tokyo

Asset
Class

No.

OfficeB-1

Arca Eazast

Sumida Ward, Tokyo

1997.3

2001.11

OfficeB-2

JPR Chiba Bldg.

Chiba City, Chiba

1991.1

2001.12

OfficeB-3

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa

1989.10

2001.11

OfficeB-5

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

1991.8

2002.9

OfficeB-6

Kawaguchi Center Bldg.

Kawaguchi City, Saitama

1994.2

2004.2

OfficeB-7

JPR Ueno East Bldg.

Taito Ward, Tokyo

1992.10

2004.3

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

1994.122005.92007.2

OfficeB-9

Rise Arena Bldg.

Toshima Ward, Tokyo

2007.1

2007.3

OfficeB-10

Yume-ooka Office Tower

Yokohama City, Kanagawa

1997.32007.7

OfficeB-11

Olinas Tower

Sumida Ward, Tokyo

2006.2

2009.6

OfficeB-12

Tokyo Tatemono Yokohama Bldg.

Yokohama City, Kanagawa

1981.52010.12RetailB-1

Tanashi ASTA

Nishitokyo City, Tokyo

1995.2

2001.11RetailB-3

Cupo-la Main Bldg.

Kawaguchi City, Saitama

2006.1

2006.3Retail

B-4

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa

1983.32006.9Retail

B-5

Musashiurawa Shopping Square

Saitama City, Saitama

2005.10

2007.3RetailB-6

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

2003.82007.4

OfficeC-1

Niigata Ekinan Center Bldg.

Niigata City, Niigata

1996.3

2001.11

OfficeC-4

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

1970.2

2001.112001.11

Property Name

Location

Completed Acquired

Subtotal (16 Properties)

Other
Cities

OfficeC-7

JPR Hakata Bldg.

Fukuoka City, Fukuoka

1985.6
2003.11

OfficeC-9

JPR Naha Bldg.

Naha City, Okinawa

1991.10

2001.11

OfficeC-12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

1997.12

2002.6

OfficeC-13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

1996.7

2002.6

OfficeC-14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

2000.7

2002.6

OfficeC-17

JPR Dojima Bldg.

Osaka City, Osaka

1993.10

2004.1

OfficeC-18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

1993.2

2004.6

OfficeC-19

JPR Nagoya Fushimi Bldg.

Nagoya City, Aichi

1991.32005.3RetailC-1

JPR Umeda Loft Bldg.

Osaka City, Osaka

1990.4

2003.5-7
2005.5RetailC-3

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

2003.2
2005.1RetailC-4

Housing Design Center Kobe

Kobe City, Hyogo

1994.6

2005.9RetailC-5

JPR Chayamachi Bldg.

Osaka City, Osaka

1994.6

2006.8Subtotal (14 Properties)
Total (57 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses indicatesratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg., Olinas Tower and Tanashi ASTA do not include
the residential portion and ratio for Yume-ooka Office Tower is that for the business tower only.

16

(As of December 31, 2011)

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

Ownership(3) (%)

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

Site Area(m2)

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

5,880

1.7

38.3

3,755.01

7,022.76

85.3

4

229,779

2,350

0.7

100.0

1,382.35

5,541.45

85.4

31

120,799

2,927

0.8

100.0

1,100.59

6,066.53

100.0

13

128,669

920

0.3

50.0

841.712,642.38

85.5

13

50,141

8,100

2.3

86.5

4,524.61

15,461.98

83.2

36

379,973

3,250

0.9

100.0

1,242.97

6,490.05

83.6

6

141,978

100.0
100.0

4
13

61,346
91,725
240,186

3,188

1.0

47.9

2,047.22

1,747.13
2,983.91
4,731.04

5,831

1.7

25.2

9,377.28

6,023.39

100.0

1

6,510

1.9

48.8

12,011.00

12,011.73

87.9

33

322,526

31,3009.1

23.3

27,335.29

23,987.40

98.6

12

1,120,647

7,000

2.0

100.0

1,110.28

6,494.09

100.0

13

308,348

10,2003.0

43.6

12,326.30

31,121.71

100.0

1

596,400

2,100

0.6

16.7

15,008.28

5,963.00

100.0

1(Note 5)

7,260

2.1

100.0

4,761.62

19,740.95

100.0

1

(Note 5)

4,335

1.3

50.0

8,317.99

14,960.69

100.0

3

129,061

15,0804.4

46.6

4,475.45

13,066.69

98.2

19

470,553

116,231

33.7

―

―

181,325.84

―

2,140

0.6

32.9

2,706.99

5,326.88

100.0

8133,210

4,150

1.2

72.0

1,432.64

7,162.60

78.0

10

107,667

2,900

0.8

100.0

1,214.63

6,581.15

91.3

25

149,576

1,560

0.5

100.0

959.87

3,946.41

93.8

18

94,548

3,150

0.9

100.0

1,895.67

7,128.81

99.9

12

194,779

1,670

0.5

100.0

1,128.45

4,874.91

88.4

14

118,875

2,810

0.8

52.2

1,164.39

3,257.73

91.4

13

90,219

2,140

0.6

100.0

668.113,930.21

100.0

9120,625

1,920

0.6

100.0

680.633,290.42

100.0

571,922

4,137

1.2

100.0

1,610.38

7,086.37

89.7

3

90,761

13,0003.8

100.0

3,518.68

18,586.97

100.0

1

402,411

5,430

1.6

100.0

609.315,303.98

100.0

1(Note 5)

7,220

2.1

100.0

3,994.47

35,444.13

100.0

1

(Note 5)

6,000

1.7

100.0

592.452,484.39

100.0

7

139,701

58,227

16.9――

114,404.96―

344,984

100.0

423,311.93

95.6

―

―
501

11,772,766

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

17

New Acquisitions during the 20th Fiscal Period and After
Property to be Acquired in the 21st Fiscal Period

Otemachi 1-6 Plan
(tentative name) (land with land leasehold) A 23
Location

Chiyoda Ward, Tokyo

Type of Ownership
Acquisition Date
Acquisition Price

Ownership
March 13, 2012
￥36,000 million

Site Area

11,034.78m2

Overview of Surface Rights:
Surface Right Holder
Mizuho Trust & Banking Co., Ltd
Contract Type
Agreement on creation of surface rights
Contract Period
70 years (until March 11, 2082)
Annual Rent

2,695 million yen

Reason for Acquisition
The acquisition of the property is in accordance with JPR's fundamental
investment policies and investment stance to acquire beneficial interests inland with land leasehold (land with surface rights) of a new high-rise officecomplex (completion in entirety scheduled for the end of April 2014) incentral Tokyo in an effort to enhance and stabilize its investment portfolio.
[Reference: Profile of Otemachi 1-6 Plan (tentative name)]
Location
District18

Site Area

6-6, Otemachi 1-chome, Chiyoda-ku, Tokyo, etc
Retail zone, fire prevention zone, Otemachi, Marunouchi
and Yurakucho District Redevelopment Project, Tokyo City
Planning Special Urban Renaissance Districts
11,034.78 m2

Gross Floor Space

Approx. 198,000 m2

Floor Area Ratio

Approx. 1,600%

Floors

B6/F38, 3 floors rooftop

Type of Structure

Below ground: RC, partial SRC; Above ground: S

Ceiling Height

2,900mm (OA floors 100mm) (standard office floors)

Use

Office, hotel, retail, parking lots, etc.

Architecture and Design

Taisei Design Planners Architects & Engineers

Construction

Taisei Corporation

Construction Period

Construction start: November 2009; Completion: April 2014

Overview of Portfolio Properties
A 1

Kanematsu Bldg.

A 2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price
Site Area￥2,874 million
679.06 m2

Total Floor Space

4,351.46 m2

Structure/Floors
Completed

SRC B1/8F

February 1993

A 3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo
Acquisition Price
Site Area￥16,276 million
1,751.13 m2

Total Floor Space

14,995.09 m2

550.06 m2

Total Floor Space

Acquisition Price
Site Area￥2,100 million

4,117.70 m2

Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/13F

December 1989

February 1993

A 4

Shin-Kojimachi Bldg.

SRC/RC B1/8F

A 5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,420 million
657.80 m2￥4,000 million
636.90 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

4,790.68 m2

5,152.98 m2

Completed

SRC B1/9F

A 6

SRC B1/9F

September 1999

October 1984

MS Shibaura Bldg.

A 7

Gotanda First Bldg.

Minato Ward, Tokyo
Acquisition Price￥11,200 million

Site Area

Completed

28,992.18 m

Shinagawa Ward, Tokyo

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

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

31,020.21 m2

SRC/RC/S B2/13F
February 1988

10,553.34 m2

SRC/RC B2/11F
July 1989

19

A 8

Fukuoka Bldg.

A 9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥2,920 million
1,302.17 m2￥5,100 million
1,058.04 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

5,888.82 m2

11,627.74 m2
SRC B2/10F
May 1990

A 10

Oval Court Ohsaki Mark WestSRC B1/9F

March 1989

A 11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price￥10,180 million

Acquisition Price
Site Area

Site Area￥3,500 million
4,006.00 m

Total Floor Space

Total Floor Space

78,796.00 m2

28,575.80 m2(entire redevelopment project)

Structure/Floors
Completed

Structure/Floors

S/SRC B2/17F

S/RC/SRC B4/30F

Completed

June 2001

A 12

BYGS Shinjuku Bldg.

8,409.52 m2(entire redevelopment project)2

October 1994

A 14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price￥15,121 million

Site Area

3,522.46 m2

Total Floor Space

25,733.10 m2

Structure/Floors
Completed

SRC B2/14F
April 1985

A 13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

Acquisition Price
Site Area￥710 million
858.48 m2

Total Floor Space

Acquisition Price

Structure/Floors

Site Area

Completed

Total Floor Space

5,535.90 m2

20

S/SRC B2/10F
June 1994￥21,000 million
14,917.11 m2
2

176,607.89 m

Structure/Floors

SRC/RC/S B5/54F

Completed

October 1979

A 15

Minami Azabu Building

Minato Ward, Tokyo

Minato Ward, Tokyo

Acquisition Price
Site Area

A 16

Shinagawa Canal Building

Acquisition Price￥3,760 million

Site Area

2778.09 m￥1,870 million
828.82 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

4,570.63 m2

CompletedS

5,216.21 m2

9F

Completed

June 1992

A 17

Rokubancho Building

S

B1/8F
July 2008

A 18

JPR Harajuku Building

Chiyoda Ward, Tokyo

Shibuya Ward, Tokyo

Acquisition Price
Site Area￥2,800 million
716.95 m2

Total Floor Space

4,205.09 m2

Structure/Floors
Completed

SRC B3/7F

October 1991

A 19

Tokyo Tatemono Kyobashi Building

Chuo Ward, Tokyo

Acquisition Price
Site Area￥5,250 million
547.10 m2

Total Floor Space

Acquisition Price

Structure/Floors

Site Area

Completed

Total Floor Space

4,419.79 m2

SRC/S B1/10F
January 1981

A 20

JPR Nihonbashi-horidome Building

1,205.07 m2
6,466.94 m2

Structure/Floors
Completed

SRC B1/9F

March 1989

A 21

JPR Sendagaya Building

Chuo Ward, Tokyo

Acquisition Price
Site Area￥8,400 million￥5,100 million
2937.59 m

Shibuya Ward, Tokyo

Acquisition Price￥15,050 million

Site Area

2,217.49 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

7,190.82 m2

Completed

SRC B1/9F
June 2002

7,683.19 m2

CompletedS

8F

May 2009

21

JPR Shibuya Tower Records Bldg.

A 22

Ginza Sanwa Building

Chuo Ward, Tokyo

Acquisition Price￥3,400 million￥12,000 million

Site Area

1,119.27 m2

Total Floor Space

Completed

8,851.00 m

Total Floor Space

SRC B2/9F

Structure/Floors

8,449.56 m2

Completed

October 1982A

JPR Daikanyama (Retail)2

Site Area

2

Total Floor Space

668.09 m

1,066.81 m2

RC B2/2F

A 4

198.10 m2

Structure/Floors
Completed

July 2002

Shinjuku Sanchome East Bldg. (Retail)3￥4,275 million

2277.12 m

Completed

A

Acquisition Price￥2,160 million

Structure/Floors

February 1992

Shibuya Ward, Tokyo

Acquisition Price

Total Floor Space

SRC/S B3/8F

JPR Jingumae 432 (Retail)Shibuya Ward, Tokyo

Site Area

1,010.47 m2

2

Structure/Floors

1Shibuya Ward, Tokyo

Acquisition Price
Site Area

A(Retail)

S/SRC B1/7F

February 2006

Yurakucho Ekimae Building

A 5(Yurakucho Itocia)(Retail)Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price￥2,740 million

Site Area

Total Floor Space

2,578.69 m2

24,617.65 m2

Structure/Floors

S/SRC/RC B3/14F

Completed

January 2007

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

Total Floor Space2

71,957.65 m

22Structure/Floors
Completed

S/SRS B4/20F
October 2007

B

Arca East

1

B

JPR Chiba Bldg.

Chiba City, Chiba

Sumida Ward, Tokyo

Acquisition Price

Acquisition Price
Site Area￥5,880 million

Site Area

23,755.01 m￥2,350 million
1,382.35 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

9,072.57 m2

34,281.86 m2

S/SRC B3/19F
March 1997

JPR Yokohama Nihon Odori Bldg.

B

3

B

￥920 million

Site Area

1,100.59 m2

841.71 m2

Total Floor Space

Total Floor Space

7,781.93 m2

9,146.52 m2

Structure/Floors

Structure/Floors

SRC B1/11F

Completed

October 1989

B 6

S/SRC B2/12F
August 1991

B

JPR Ueno East Bldg.

Acquisition Price

Acquisition Price

Site Area

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

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

8,490.44 m2

28,420.85 m2

S/SRC B2/15F

February 1994

B

8

Tachikawa City, Tokyo
Acquisition Price
Site Area￥3,188 million
2,047.22 m2

Total Floor Space

Completed

October 1992

Toshima Ward, Tokyo

Acquisition Price￥5,831 million

Site Area

9,377.28 m2（entire redevelopment project)

Total Floor Space

S/SRC B1/12F

Structure/Floors

December 1994

S/SRC B1/8F

B 9

Rise Arena Bldg.

14,706.36 m2

Structure/Floors

7

Taito Ward, Tokyo

Kawaguchi City, Saitama

Tachikawa Business Center Bldg.

5

Acquisition Price￥2,927 million

Kawaguchi Center Bldg.

January 1991

Yokohama City, Kanagawa

Acquisition Price

Completed

S/SRC B1/13F

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

Site Area

2

91,280.94 m2（including residential tower)

RC/SRC/S B3/42F*

Completed

January 2007

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

23

Yume-ooka Office Tower

B 11

Olinas Tower

B 10

Yokohama City, Kanagawa

Sumida Ward, Tokyo

Acquisition Price
Site Area

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

Site Area2

12,011.00 m

27,335.29 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

185,974.87 m2

257,842.41 m2

S/SRC/RC B3/27F

SRC/RC/S B2/45F*

March 1997

February 2006

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

B 12

Tokyo Tatemono Yokohama Bldg.

Yokohama City, Kanagawa

Acquisition Price

Site Area

Site Area

1,110.28 m2￥10,200 million
12,326.30 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

8,772.51 m2
SRC B1/9F

Completed

B 3

Kawaguchi City, Saitama
Acquisition Price
Site Area

80,675.27 m2

CompletedMay 1981

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

SRC B2/17F

February 1995

B

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

Total Floor Space
Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/10F
January 2006

Musashiurawa Shopping Square

B(Retail)5

Saitama City, Saitama

18,394.32 m2

SRC/RC/S B1/6F
March 1983

Kawasaki Dice Bldg. (Retail)B

Acquisition Price

Site Area

Site Area

Total Floor Space

8,317.99 m2

28,930.36 m2

Structure/Floors
Completed

S

B1/4F

October 2005

6

Kawasaki City, Kanagawa

Acquisition Price￥4,335 million

4

Kawasaki City, Kanagawa

Total Floor Space

48,321.96 m2

1

Nishitokyo City, Tokyo

Acquisition Price￥7,000 million

24

B

Tanashi ASTA (Retail)￥15,080 million

Total Floor Space

4,475.45 m2

36,902.01 m2

Structure/Floors

S/SRC/RC B2/11F

Completed

August 2003

C

Niigata Ekinan Center Bldg.

Tokyo Tatemono Honmachi Bldg. C

1

Osaka City, Osaka

Niigata City, Niigata
Acquisition Price
Site Area

Acquisition Price￥2,140 million

Site Area

2

Total Floor Space

19,950.42 m

Structure/Floors

S/SRC B1/10F

Completed

March 1996C

JPR Hakata Bldg.

7

1,432.64 m2

14,619.52 m2

Structure/Floors
Completed￥4,150 million

22,706.99 m

Total Floor Space

SRC B3/9F

February 1970C

JPR Naha Bldg.

Fukuoka City, Fukuoka

Acquisition Price

Site Area

Site Area￥2,900 million
1,214.63 m2￥1,560 million
959.87 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

5,780.71 m2

9,828.73 m2

S/RC B1/12F
June 1985

C 12

SRC/S 12F

October 1991

C 13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

Sendai City, Miyagi
Acquisition Price

Acquisition Price

Site Area

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

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

10,783.52 m2

6,715.07 m2

SRC B1/12F

December 1997

C 14

Tenjin 121 Bldg.

Acquisition Price
Site AreaS￥2,810 million
2

1,164.39 m

C 17
Osaka City, Osaka

Acquisition Price
Site Area￥2,140 million
668.11 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

8,690.95 m2

Completed

S/SRC 13F
July 2000

9F

July 1996

JPR Dojima Bldg.

Fukuoka City, Fukuoka

9Naha City, Okinawa

Acquisition Price

Sompo Japan Sendai Bldg.

45,696.01 m2

Completed

SRC B2/9F

October 1993

25

C 18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

Nagoya City, Aichi

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,920 million
680.63 m2￥4,137 million
1,610.38 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

3,874.81 m2

Completed

SRC 8F

February 1993C

JPR Umeda Loft Bldg. (Retail)1

Acquisition Price￥13,000 million

Site Area

10,201.44 m2

Completed

SRC B1/9F

March 1991

Benetton Shinsaibashi Bldg. (Retail) C

Osaka City, Osaka

2

3,518.68 m

Acquisition Price
Site Area￥5,430 million
609.31 m2

Total Floor Space

Structure/Floors

Structure/Floors

Completed

SRC B1/8F

April 1990

C

Housing Design Center Kobe (Retail)4

Kobe City, Hyogo

5,303.98 m2

CompletedSC

JPR Chayamachi Bldg. (Retail)

Site Area

Site Area￥6,000 million
592.45 m2

Total Floor Space

Total Floor Space

Structure/Floors

Structure/Floors

Completed

Completed

33,877.71 m2

SRC/S B2/11F
June 1994

5

Osaka City, Osaka
Acquisition Price

3,994.47 m2

B2/10F

February 2003

Acquisition Price￥7,220 million

3

Osaka City, Osaka

Total Floor Space

17,897.56 m2

26

C 19

JPR Nagoya Fushimi Building

3,219.36 m2
S/SRC 9F
June 1994

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

Corporate History
Date

Description

September 6, 2001

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

September 14, 2001

Japan Prime Realty Investment Corporation was established

November 16, 2001

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

January 22, 2002

Investment unit split (2.5 units for 1 existing unit)

June 14, 2002

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

27

Members of the Board (As of December 31, 2011)

Executive Officer

Hirohito Kaneko
Dec. 2001
Apr. 1979
Apr. 1977

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

Supervising Officer

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

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

Supervising Officer

Masato Denawa
Apr. 201128

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

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

Overview of the Asset Manager
Corporate Profile
Name

Tokyo Realty Investment Management, Inc. (TRIM)

Core Business

Asset management for investment corporation

Capitalization

350 million yen

Shareholders

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

History

April 28, 2000:

Founded

October 13, 2000:

Approved for real estate transaction service

March 16, 2001:

Approved as discretionary transaction agent

June 20, 2001:

Approved for asset management of investment corporation

September 30, 2007:

Registered as investment management business

November 28, 2007:

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

Services

Organization

Shareholders Meeting

Auditors

Board of Directors
President and CEO

Investment Committee

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

ResearchGroup

Investment
Group

Asset
Management
Group

Corporate Plannig /Financial Division

Division

FinancialGroup

Investor
RelationsGroup

Administration Division

FundManagement
Group

Corporate
Planning
Group

Accounting /HumanResourcesGroup

TRIM's Decision-Making Process of Investment Management

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

29

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

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

Director and Chief Administrative Officer (CAO)

Kazuo Kitami

Mar. 2012 Transferred to Tokyo Realty Investment Management, Inc. as Director and Chief Administrative Officer (currently held position)
Oct. 2004 Appointed as Director and Chief Administrative Officer, Tokyo Realty Investment Management, Inc. (currently held position)
Oct. 2004 Dispatched to Tokyo Realty Investment Management, Inc.
Jan. 2004 Appointed as member of the council in charge of Affiliated Companies Dept. Meiji Yasuda Life Insurance Company
Apr. 2003 Appointed as Manager, Loan Management of the Management and Administration Division
Aug. 2000 Appointed as Manager, Loan General Affairs of the Management and Administration Division
Apr. 1997 Appointed as Manager, Credit Assessment Dept. 2 of the Management and Administration Division
Apr. 1995 Appointed as Manager of Real Estate Development Dept. of the Real Estate DivisionSep. 1989 Appointed as Manager of Real Estate Development Dept. of the Real Estate Division
Apr. 1975 Joined Yasuda Mutual Life Insurance Company (currently Meiji Yasuda Life Insurance Company) and assigned to Training
Institute of the Education Division

Director and Chief Investment Officer

Kazuki Sugise

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

Research Group), Tokyo Realty Investment Management, Inc.

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

Director and Chief Financial Officer (CFO)

Satoshi Eida

Jun. 2011 Appointed as Auditor of Tokyo Real Estate Management Co., Ltd. (currently held position)
Mar. 2011 Appointed as Director of Shinjuku Square Tower Management Co., Ltd. (Note)Mar. 2011 Appointed as President and Chief Executive Officer of Shinjuku Center Building Management Co., Ltd.
Mar. 2011 Appointed as General Manager, Business Planning Department, Commercial Properties Division (currently held position)
Jan. 2009 Appointed as General Manager, Compliance Department
Apr. 2008 Appointed as Group Leader, Corporate Administration Group, Corporate Planning Department
Apr. 2005 Appointed as Group Leader, Management Planning Group, Corporate Planning Department
Oct. 2002 Appointed as Group Leader, Sapporo Branch and Deputy General Manager, Sapporo Branch
Sep. 2002 Appointed as Deputy General Manager, Sapporo Branch
Apr. 2000 Appointed as Manager, Sapporo Branch
Apr. 1986 Joined Tokyo Tatemono Co., Ltd.
(Note) Shinjuku Square Tower Management Co., Ltd. was merged into Tokyo Tatemono Co. Ltd. as of December 1, 2011.

Director and Compliance Officer

Shigeyuki Sugawara

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

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

30

Overview of Asset Management(1) Operational Performance of JPR
Unit

Operating Revenue
Rent revenue - real estate

Million yen

Gain on sale of real estate
Operating Operating Expenses
Performance
Expenses related to rent
business
Operating Income

Million yen
Million yen

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

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

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

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

20th
Fiscal Period(July 1, 2011 Dec. 31, 2011)

11,493

12,314

11,87011,529

11,772

11,493

11,855

11,87011,772459―

11,529

5,830

5,983

5,926

6,009

―

5,665

－

－

5,010

5,144

5,361

5,296

5,357

5,827

6,484

5,886

5,603

5,763

Ordinary Income

Million yen

4,333

4,964

4,039

4,075

4,201

Net Income

Million yen

4,332

4,963

4,039

4,010

4,200

Total Assets

Million yen

332,380

358,339

360,904

360,004

360,699(+1.0)(+7.8)(+0.7)(-0.2)(+0.2)(% Change)%

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

Million yen

150,872

161,262

163,904

162,763

163,005

Million yen

161,058

176,303

175,502

175,452

175,640(+1.3)(+9.5)(-0.5)(-0.0)(+0.1)(% Change)%

Unitholders' CapitalMillion yen

156,725

171,339

171,339

171,339

171,339

Total Cash Distributions

Million yen

4,333

4,840

4,061

4,011

4,201

100.0

97.5

100.5

100.0

100.0

Units

625,000

715,000

715,000

715,000

715,000

Yen

257,693

246,578

245,458

245,387245,651

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

%

Yen

%

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

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

Financial
Indices

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

Occupancy Rate

6,770

5,680

5,611

5,876

6,770

5,680

5,611

5,876

―

―

―

－

－

1.3

1.4

1.1

1.1

1.2

2.6

2.9

2.2

2.3

2.3

2.7

2.9

2.3

2.3

2.4

5.4

5.9

4.6

4.6

4.7

159,057

161,058

176,303

175,502

175,452

48.5

49.2

48.6

48.7

48.7

(+0.1)(+0.7)(-0.6)(+0.1)(-0.0)

45.4

45.0

45.4

45.2

45.2

5.4

5.4

4.9

5.1

5.3

7,604

7,841

7,511

7,438

7,427

1,420

1,439

1,542

1,451

1,402

Million yen

8,332

8,607

8,438

8,144

8,239

%

5.3

5.2

4.9

4.8

4.7

Million yen

7,657

8,383

7,980

7,597

7,628

%

4.9

5.0

4.6

4.5

4.4

53

55

56

56

57

476

460

479

493

501

m2

400,751.87

410,326.04

420,544.51

421,371.51

423,311.93

%

96.4

95.5

93.5

94.7

95.6

Million yen

Properties Owned (Note 11)
Number of tenants

Reference Total Leasable Floor Space (NoteInformation
12)

6,933
6,933

(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Notes 2-1 and 2-2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debt / total assets at end of period x 100(Note 5) Net income before interest and amortization (excluding gain or loss on sale of real estate, and extraordinary loss) / interest paid
(Note 6) Interest paid in this table includes interest on corporate bonds(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing / purchase price of property (16th fiscal period: ￥310.61 billion, 17th fiscal period: ￥335.98 billion, 18th fiscal period: ￥341.58
billion, 19th fiscal period: ￥341.58 billion and 20th fiscal period: ￥344.98 billion)
Annualized NCF from leasing / purchase price of property(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 16th fiscal period: 184 days, 17th fiscal period:181 days,
18th fiscal period: 184 days, 19th fiscal period: 181days and 20th fiscal period: 184 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East Bldg., Tachikawa Business Center Bldg. and JPR
Umeda Loft Bldg. were acquired at multiple times but are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratios indicated on financial indices are rounded to the first decimal point (except for the dividend payment ratio, which is rounded off to the first decimal point) .

31

(2) 20th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Investment Trusts
and Investment Corporations Law (hereafter, the Investment Trusts Law), and was listed on the Tokyo Stock Exchange
Real Estate Investment Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment
units. JPR made its fourth additional public offering in February 2010, bringing the number of investment units issued
and outstanding to 715,000 units. JPR has assigned the asset management of its portfolio to Tokyo Realty Investment
Management Inc., through which JPR aims to maximize unitholder value by efficiently managing the portfolio of officebuildings and retail properties.

2) Management Environment
During the 20th fiscal period, the Japanese economy was on its way out of the impact of the Great East Japan Earthquake,achieving advances in the recovery of disrupted supply chains through progress in the restoration of production facilities,
managing to overcome the power shortage issues last summer. For the moment, however, a variety of issues have surfaced,
including the European sovereign debt crisis, concerns about the accompanying slowdown in the world economy andforeign exchange problems, and the outlook remains to be seen.
As for the circumstances surrounding investment corporations, the investment unit prices continued to remain low, given
the prolonged stagnance in the real estate market as well as the global trend of taking “Risk Off.”The Office Building Leasing Market
Despite initial concerns for the office market worsening due to the impact of the earthquake disaster, new demand recorded
a net increase and the vacancy rate in the 23 wards of Tokyo remained almost flat. However, given the sense of uncertainty
for the outlook of the economy and other factors, it is hard for the supply and demand situation of office spaces to makean abrupt upturn in the short term, and the office building leasing market will probably continue to remain at the bottom
for some time.
Furthermore, after the earthquake, tenants are placing more importance on the seismic resistant performance and energysaving performance in selecting office buildings, and tenant’s preference is becoming increasingly polarized in a weakmarket condition, with considerations given to such evaluations.

The Retail Property Leasing Market
Although the retail property leasing market is generally in a difficult situation, consumer confidence has been slowly
recovering from the worsened status immediately after the earthquake. Some urban retail properties in good locations,such as Ginza and Shinjuku, are presumably almost bottoming out as a result of significant rent adjustments already taken
following the financial crisis.

The For-Sale Real Estate Market
The “wait-and-see” attitude prevailed in the for-sale real estate market for a certain period after the earthquake, but themarket has been gradually recovering from then onward, with some large-scale deals successfully closed.
As fund procurement conditions provided by financial institutions remain stable, sellers have not lowered their pricetargets. On the other hand, buyers appear to have difficulty in raising the price levels they can afford since the outlook of
the domestic economy and the real estate market remains to be somewhat weak.
As for investment corporations, their fund procurement options are limited by the investment unit prices that haverecently remained low. This may impose limitations on property acquisitions by investment corporations.

3) Portfolio Management Status
New Property Acquisitions

JPR investigates possible investments mainly in office buildings in Tokyo CBDs and retail properties with the primary aim ofstabilizing portfolio earnings while paying attention to balancing diversification of the portfolio, both in terms of location
and asset class.
During the 20th fiscal period, JPR acquired Ginza Sanwa Building (acquisition price: 3.4 billion yen), resulting in thebalance of assets under management now totaling 57 properties, or 344.9 billion yen on an acquisition price basis, as of theend of December 2011. The total leasable floor space is now 423,311m2 and the number of tenants is 501.

32

Operational Management of Portfolio
Throughout Japan, tenant demand was mainly focused on integration of offices and relocation for consolidation with an
aim to reduce costs. This caused the leasing market to remain tough, and JPR conducted management under a policy thatplaces the highest priority on maintaining and improving occupancy rates.
Based on this policy, JPR kept close cooperation with property management companies, centering on Tokyo Tatemono
Co., Ltd., and brokers to offer candidate tenants strategic leasing terms that reflect the market conditions and to respondto demand from existing tenants for expanded floor spaces within the buildings. With the accumulated effects of theseendeavors, the period-end occupancy rate was successfully increased by 0.9 points to 95.6% from the 94.7% at the end of
the previous fiscal period.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR
continued to proactively implement renovations in an aim to create spaces where the workers feel satisfaction. As an
endeavor to implement energy-saving measures, JPR conducted such construction as replacement of LED lamps in thecommon areas and leasable areas of JPR Ueno East Building and replacement of lighting equipment and LED lamps in theleasable areas of Kanematsu Building Annex, which are expected to be effective in saving energy. Furthermore, in responseto the request by the government to reduce power consumption due to the impact of the Great East Japan Earthquake, JPR
implemented significant power saving, while paying attention to tenant satisfaction, not only at it large buildings that are
subject to use restrictions pursuant to the Electricity Business Act (Act No. 170 of 1964, as amended thereafter) but also atother buildings to which the law is not applicable, from the viewpoint of social importance. JPR is also proactively engaged
in environmental friendliness, as exemplified by the fact that JPR was ranked third among listed companies in Asia in theinternational survey on environmental responses of real estate business operators conducted by GRESB*, which comprises
representative European pension funds and other entities.
*GRESB stands for the Global Real Estate Sustainability Benchmark.

Fund Procurement
During the 20th fiscal period, JPR continued to maintain its stable financial base through such measures as conducting
refinances to long-term fixed interest funds, with an eye on avoiding future interest rate fluctuation risks and remaining
attentive to the diversification of repayment and redemption maturity dates.
As a result, the balance of total outstanding borrowings as of the end of the fiscal period was 111.50 billion yen, with
unsecured corporate bonds of 51.5 billion yen. With regard to JPR’s overall interest-bearing debt, the average interest rate
as of the end of the fiscal period (Note 1) was 1.7%, the interest-bearing debt ratio (Note 2) was 48.8% and the LTV (ratio ofinterest-bearing debt to total assets) at the end of the period (Note 3) was 45.2%.
Of these, the non-current portion of long-term interest-bearing debt that is hedged against risk of interest rate fluctuations
now comprises 76.1% of all interest-bearing debt, and the average maturity (Note 4) is 3.8 years. The current portion of
long-term interest-bearing debt is 26.61 billion yen.
The following represents the issuer ratings for JPR as of the end of this fiscal period.

Details of Corporate Credit Ratings as of December 31, 2011
Credit Rating Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

AA- (Stable)

Moody's Japan K.K.

A2 (Negative)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) Average interest is arrived at by calculating a weighted average of interest rates as of the end of the 20th fiscal period based on thebalance of each debt.
(Note 2) Interest-bearing debt ratio (%): interest-bearing debt/(interest-bearing debt + unitholders' capital) x 100 (unitholders' capital:
171.33 billion yen)
(Note 3) LTV at end of period (%): interest-bearing debt/total assets at end of period x 100 (total assets at the end of the 20th fiscal period:
360.69 billion yen)
(Note 4) Average maturity of long-term interest-bearing debt is arrived at by calculating a weighted average of maturities from the end of
the 20th fiscal period to the repayment deadlines for long-term interest-bearing debt with repayment periods of more than one
year, based on the balance of each debt.

33

(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. in and prior to the 19th fiscal period.
Date

Number of Units
Outstanding

Event

Variation
September 14, 2001 Established by private placement

Unitholders' Capital(million yen)

Balance

Variation

Remarks

Balance

240

240

120

120

(Note 1)

November 16, 2001 Additional private placement

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

93,360155,600-

31,120(Note 3)

Split of investment units

June 14, 2002

Initial public offering

134,000

289,600

25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

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

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), andTokyo Realty Investment Management, Inc. (40 units) at 500,000 yen per unit.
An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in realestate trust and started management.
(Note 3) A single investment unit was split into 2.5 units.
(Note 4) New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to
repay short-term debt, finance the acquisition of new specific assets, etc.
(Note 5) New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 6) New investment units were issued through a third-party allotment at 228,859 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 7) New investment units were issued through a public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 8) New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 9) New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to
repay debt, acquire new specific assets, etc.
(Note 10) New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debt, acquire new specific assets, etc.
(Note 11) New investment units were issued through a public offering at 168,101 yen per unit (underwriting price of 162,382 yen per unit) to
repay short-term debt, redeem investment corporation bonds, acquire new specific assets, etc.
(Note 12) New investment units were issued through a third-party allotment at 162,382 yen per unit to repay short-term debt, redeem
investment corporation bonds, acquire specific assets, etc.
(Note 1)
(Note 2)(4) Cash Distributions
With regard to the cash distributions for the 20th fiscal period, JPR decided to distribute part of the retained earnings
brought forward that had been internally reserved through the 19th fiscal period. This was conducted with the aim ofhaving the profit distributions deducted as expenses based on application of the special provision on taxation of investment
corporations (Article 67-15 of the Act on Special Measures Concerning Taxation) and in order to minimize the burden on
unitholders incurred by accrual of income taxes, etc. As a result, the cash distribution per unit came to 5,876 yen.

(Thousands of yen unless otherwise indicated)

Date

Unappropriated Retained
Earnings at End of Period
Internal Reserves

4,333,229

4,963,970

4,088,758

4,038,287

4,226,806

104

123,420

27,55826,422

25,466

Total Cash Distributions(cash distribution per unit)

4,333,125

4,840,550

4,061,200

4,011,865

4,201,340(6,933 yen)

(6,770 yen)

(5,680 yen)

(5,611 yen)

(5,876 yen)

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

4,333,125

4,840,550

4,061,200

4,011,865

4,201,340(6,933 yen)

(6,770 yen)

(5,680 yen)

(5,611 yen)

(5,876 yen)

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

34

20th
Fiscal Period(July 1, 2011 Dec. 31, 2011)

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

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

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

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

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)(5) Future Management Policy and Vital Issues
For the moment, there is a large pile of major issues including the outcome of the European sovereign
debt problem, concerns about the slowdown in the world economy and the foreign exchange trends. In
addition, it seems inevitable that power shortage due to the impact of the nuclear power plant accident will
be prolonged and extended to wider areas. On the other hand, there are also bright signs observed, withexpectations growing for expanded domestic demand in association with demand from post-earthquake
constructions becoming full-fledged.
According to the economic outlook for fiscal 2012 by the government, the real GDP growth for the fiscal
year is expected to be around 2.2%. If this economic outlook is assumed, it is anticipated that new demand
will arise to meet a large volume of supply and the office building leasing market will remain stable.
In the for-sale real estate market, it is anticipated that transactions will take place more often primarily
by players with additional capacity to procure funds, if concerns for further worsening of the real estatemarket diminish.
Based on these conditions, JPR will proceed with management that exercises caution regarding the following
matters as we strive to maximize unitholder value.

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

352) Management of Portfolio
Given the continuation of the severe leasing environment, JPR will work to maintain and raise theoccupancy rate of its portfolio by conducting measures to reinforce leases, centering on strategic upgrading
constructions with an aim to invite new tenants and enhance satisfaction of existing tenants and on further
strengthening coordination with tenant brokers. For properties that have particularly stagnant occupancy
rates, JPR will focus on conducting leasing activities by more closely cooperating with property managementcompanies, centering on Tokyo Tatemono.
Moreover, under the concept of “Save energy,” which is part of JPR’s brand strategy, JPR will systematically
implement “renovations of air conditioning systems aiming to create buildings with high environmental
performance” and other measures, in promoting endeavors to meet the energy-saving obligations (efforts tosave energy by at least 1% on average per year) based on the revised Act on the Rational Use of Energy (ActNo. 49 of 1979, as amended thereafter) (hereinafter, the “Revised Energy Conservation Act”), the Ordinanceon Environmental Preservation to Secure the Health and Safety of Citizens of the Tokyo Metropolitan Area
(Ordinance No. 215 of 2000, as amended thereafter) of the Tokyo Metropolitan Government and other laws
and regulations. JPR has been investigating measures that should help reduce energy consumption, such as
replacing lighting equipment with LED lamps, for buildings subject to the Revised Energy Conservation Act.
JPR estimates that the measures will make it possible to fulfill the energy savings obligations for the coming
five years without having to make significant changes to the existing medium- to long-term repair andmaintenance plans.
On top of these, against the backdrop of the moves by Tokyo Electric Power Company and other electricity
companies to significantly raise power rates, JPR will take necessary measures to save power consumption
at not only large buildings but also other buildings in its portfolio, while continuously paying attention totenant satisfaction.

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

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

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

36

Overview of the Investment Corporation(1) Unitholders' Capital

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

18th Fiscal Period
as ofDecember 31, 2010

19th Fiscal Period
as ofJune 30, 2011

20th Fiscal Period
as ofDecember 31, 2011

Total number of authorized units

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total number of units issued andoutstanding

625,000

715,000

715,000

715,000

715,000

Unitholders' capital (millions of yen)

156,725

171,339

171,339

171,339

171,339

Total number of unitholders

14,751

15,197

14,977

14,576

14,513(2) Primary Investors
The following table shows the 10 largest investors according to the percentage of their owned investment units to the total
number of units outstanding as of the end of the 20th fiscal period.

Name

Number of
Owned Units

Address

Percentage
of Total Units
Outstanding (%)

Japan Trustee Services Bank, Ltd.

Chuo Ward, Tokyo

129,119

18.05

The Nomura Trust and Banking Co., Ltd.

Chiyoda Ward, Tokyo

53,652

7.50

Trust & Custody Services Bank, Ltd.

Chuo Ward, Tokyo

42,043

5.88

Tokyo Tatemono Co., Ltd.

Chuo Ward, Tokyo

29,300

4.09

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

London, UK(Chuo Ward, Tokyo)

27,258

3.81

Kawasaki Gakuen

Kurashiki City, Okayama

25,0003.49

Meiji Yasuda Life Insurance Company

Chiyoda Ward, Tokyo

24,0003.35

The Master Trust Bank of Japan, Ltd.

Minato Ward, Tokyo

23,000

3.21

The Senshu Ikeda Bank, Ltd.

Kita Ward, Osaka City, Osaka

13,6301.90

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

Luxemburg(Chiyoda Ward, Tokyo)

13,0961.83

380,098

53.16

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

37

(3) Items Related to Directors

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 20th fiscal period are as follows.
Position

Executive Officer

Supervising
Officers (Note 1)

Name

Other Current Assignments

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office

Sosuke Yasuda

Numberof Owned
Units

2,400

―

Adviser, Gyosei Audit Corporation
Group representative partner, GYOSEI Certified
Public Tax & Accountants’ Co.
Outside Auditor, Nomura Research Institute, Ltd.
(part-time)―

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

Masato Denawa
Independent
Auditor (Note 2)

Total Directors'
Fee during
the 20th Fiscal Period(thousands of yen)

4,200

―

Partner Attomey, Spring Partners

Ernst & Young
ShinNihon LLC―

15,900(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 fee regarding preparation of comfort letters for issuance ofinvestment corporation bonds.

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor

The dismissal of independent auditors shall be considered in accordance with the designations of the Investment
Trust Law. The decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following
comprehensive consideration of circumstances including audit quality, audit fee and other various conditions.

(4) Asset Manager, Asset Custodian and Administrative Agent

The asset manager, asset custodian and administrative agents of JPR at the end of the 20th fiscal period are as follows.
Outsoursing Category

Name

Asset management company

Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

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

Administrative agent(administration concerning
corporate bonds)

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

38―

Status of JPR's Assets under Management(1) JPR's Asset Structure
19th Fiscal Period(as of June 30, 2011)

Asset TypeReal estate

Real estate in trust

Area

Assets owned
by JPR(thousands of yen)

20th Fiscal Period(as of December 31, 2011)
Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Percentage of
total assets (%)

Tokyo CBDs

76,720,219

21.3

80,395,006

22.3

Greater Tokyo

64,924,515

18.0

64,450,594

17.9

Other Cities

11,029,829

3.1

10,958,808

3.0Tokyo CBDs

88,354,212

24.5

88,142,132

24.4

Greater Tokyo

44,825,226

12.5

44,487,473

12.3

Other Cities

44,682,002

12.4

44,446,607

12.3

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

8.2
(―)
100.0
(91.8)

27,818,485(―)
360,699,107( 332,880,621)

7.7
(―)
100.0
( 92.3)

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

(2) Major Assets Owned by JPR

The following is an overview of the major assets (ten largest properties by book value at end of period)
owned by JPR as of the end of the 20th fiscal period.
Property NameBook Value(thousandsof yen)Leasable Floor
Space (m2)

23,987.40

Leased Floor
Space (m2 )23,652.51

Occupancy
Rate (%)

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

Asset Class

98.6

9.3

OfficeOlinas Tower

30,312,442

Shinjuku Center Bldg.

21,620,848

8,861.34

7,753.89

87.5

4.1

OfficeBYGS Shinjuku Bldg.

15,702,753

15,237.87

14,826.53

97.3

4.5

OfficeJPR Sendagaya Bldg.

15,321,160

6,177.74

5,553.22

89.9

2.3

OfficeKanematsu Bldg.

14,939,477

7,994.02

7,592.34

95.0

3.1

OfficeKawasaki Dice Bldg.

14,626,249

13,066.69

12,825.79

98.2

3.4

RetailJPR Umeda Loft Bldg.

12,588,589

18,586.97

18,586.97

100.0

3.6

RetailJPR Shibuya Tower Records Bldg.

11,673,302

8,076.85

8,076.85

100.0

3.2

RetailMS Shibaura Bldg.

10,951,786

14,470.72

13,490.04

93.2

4.1

OfficeShinjuku Square Tower

9,133,833

11,150.78

11,047.40

99.1

2.1

Office156,870,445

127,610.38

123,405.54

96.7

39.7

Total

(Note 1) R ate 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) T he tenants of Shinjuku Center Bldg. and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a lease agreement has been executed where the rent paid by the tenant fluctuates inaccordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate entered for this building are the figures concerning the
sub-lessee of the tenant.
(Note 3) E ach sectional owner of Shinjuku Square Tower leases its portions to Tokyo Tatemono Co., Ltd. collectively, and the firm subleases them to sub-lessees. The figure includes the portion
additionally acquired in 14th fiscal period.
Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted areas of offices, shops and warehouses which the company rents and can subleaseto sub-lessees by 40.31465%, the rent allocation ratio of JPR. The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent
allocation ratio. Each figure has been rounded to the second decimal point.

39

(3) Acquired Properties

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

Location Asset
Category Class

Property Name

Beneficiary Interest

14,939,477

10,200,000

Chuo Ward, Tokyo

Beneficiary Interest

2,485,245

2,060,000

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

Beneficiary Interest

1,993,463

2,260,000

1,628,294
562,328
202,892

3,030,000

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

Chiyoda Ward, Tokyo

Beneficiary Interest

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

Beneficiary Interest

3,502,609

3,470,000

MS Shibaura Bldg.

Minato Ward, Tokyo

Beneficiary Interest

10,951,786

13,400,000

Gotanda First Bldg.

Shinagawa Ward, Tokyo Beneficiary Interest

2,701,723

2,850,000

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

Beneficiary Interest
Real Estate

1,780,404
1,145,235

3,180,000

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

Beneficiary Interest

5,316,493

4,760,000

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo Beneficiary Interest

3,175,133

4,280,000

Shinjuku Ward, Tokyo

Beneficiary Interest
Real Estate

8,955,346
178,487

7,796,000

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Real Estate

15,702,753

13,700,000

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

Real Estate

631,338

819,000

Shinjuku Center Bldg.

Shinjuku Ward,Tokyo

Real Estate

21,620,848

13,300,000

Minami Azabu Building

Minato Ward, Tokyo

Real Estate

3,872,123

2,730,000

Shinagawa Canal Building

Minato Ward, Tokyo

Real Estate

1,835,834

1,790,000

Rokubancho Building

Chiyoda Ward, Tokyo

Real Estate

2,919,548

3,090,000

JPR Harajuku Building

Shibuya Ward, Tokyo

Beneficiary Interest

8,745,340

7,250,000

Tokyo Tatemono Kyobashi Bldg.

Chuo Ward, Tokyo

Real Estate

5,271,120

5,210,000

JPR Nihonbashi-horidome Bldg.

Chuo Ward, Tokyo

Beneficiary Interest

5,174,472

5,740,000

JPR Sendagaya Bldg.

Shibuya Ward, Tokyo

Real Estate

15,321,160

10,200,000

Ginza Sanwa Bldg.

Chuo Ward, Tokyo

Real Estate

3,550,430

3,430,000

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

Beneficiary Interest

11,673,302

12,600,000

JPR Daikanyama

Shibuya Ward, Tokyo

Real Estate

2,205,748

1,280,000

Shibuya Ward,Tokyo

Beneficiary Interest

4,353,817

3,750,000

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

Real Estate

2,750,458

2,330,000

Yurakucho Ekimae Building (Yurakucho Itocia)

Chiyoda Ward, Tokyo

Real Estate

3,389,918

2,620,000

Arca East

Sumida Ward, Tokyo

Beneficiary Interest

4,719,853

5,890,000

JPR Chiba Bldg.

Chiba City, Chiba

Beneficiary Interest

2,436,422

1,550,000

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa Beneficiary Interest

2,695,987

2,460,000

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa Real Estate

Kawaguchi Center Bldg.

857,887

815,000

Kawaguchi City, Saitama Beneficiary Interest

7,197,943

8,020,000

JPR Ueno East Bldg.

Taito Ward, Tokyo

Real Estate

3,143,943

4,620,000

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

Beneficiary Interest
Real Estate

791,529
2,215,540

2,880,000

Rise Arena Bldg.

Toshima Ward, Tokyo

Real Estate

5,613,025

5,890,000

Yume-ooka Office Tower

Yokohama City, Kanagawa Real Estate

6,084,968

5,560,000

Olinas Tower

Sumida Ward, Tokyo

30,312,442

32,300,000

Real EstateTokyo Tatemono Yokohama Building

Yokohama City, Kanagawa Real Estate

7,019,334

6,990,000

Tanashi ASTA

Nishitokyo City, Tokyo

7,880,732

12,300,000

Cupo-la Main Bldg.

Kawaguchi City, Saitama Real Estate

1,923,415

2,480,000

Retail JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa Real Estate

7,280,037

5,280,000

Musashiurawa Shopping Square

Saitama City, Saitama

Beneficiary Interest

4,138,754

3,920,000

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa Beneficiary Interest

14,626,249

14,664,000

OfficeOther
CitiesAppraisal Value(as ofDecember 31, 2011)(thousands of yen)

Chuo Ward, Tokyo

Retail JPR Jingumae 432

GreaterTokyo

Book Value(as ofDecember 31, 2011)(thousands of yen)

Kanematsu Bldg. Annex(additional acquisition in 14th fiscal period )OfficeAsset Type

Kanematsu Bldg.

Office Shinjuku Square Tower
Tokyo
CBDs

Location

Beneficiary Interest

Niigata Ekinan Center Bldg.

Niigata City, Niigata

Beneficiary Interest

1,671,735

2,090,000

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

Beneficiary Interest

4,198,873

3,210,000

JPR Hakata Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

3,246,665

2,890,000

JPR Naha Bldg.

Naha City, Okinawa

Beneficiary Interest

1,447,198

1,460,000

Sompo Japan Sendai Bldg.

Beneficiary Interest

2,413,837

3,320,000

Beneficiary Interest

1,330,939

1,670,000

Tenjin 121 Bldg.

Sendai City, Miyagi
Wakayama City,
Wakayama
Fukuoka City, Fukuoka

Beneficiary Interest

2,349,740

2,070,000

JPR Dojima Bldg.

Osaka City, Osaka

Beneficiary Interest

2,064,592

2,180,000

JPR Hakata-chuo Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

1,800,182

1,640,000

JPR Nagoya Fushimi Building

Nagoya City, Aichi

Real Estate

4,241,857

2,660,000

JPR Umeda Loft Bldg.

Osaka City, Osaka

Beneficiary Interest

12,588,589

13,500,000

Sompo Japan Wakayama Bldg.

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

Beneficiary Interest

5,301,798

4,270,000

Retail Housing Design Center Kobe

Kobe City, Hyogo

Real Estate

6,716,951

6,460,000

JPR Chayamachi Bldg.

Osaka City, Osaka

Beneficiary Interest

6,032,453

4,540,000

Total

332,880,621

314,704,000(Note ) The calculated values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

40

History of rental business for each of JPR's real estate and beneficiary interest in real estate investments
19th Fiscal Period (from Jan. 1, 2011
to June 30, 2011)
Location Asset
Category Class

Property Name

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

90.0

313,381

2.7

8

95.0

360,986

1

100.0

86,544

0.8

1

100.0

85,4850.7

JPR Ningyo-cho Bldg.

3

59.6

70,366

0.6

2

45.9

72,5950.6

100.0

73,455

0.6

95.7

77,3180.7

67.4

20,4950.2

67.4

20,2750.2

100.0

12,3120.1

0.0

12,180

0.1

10

9

3.1

JPR Crest Takebashi Bldg.

8

94.9

130,972

1.1

8

94.9

126,701

1.1

MS Shibaura Bldg.

8

100.0

513,295

4.5

7

93.2

518,125

4.4

Gotanda First Bldg.

2

100.0

131,459

1.1

2

100.0

135,793

1.2

100.0

87,3560.8

100.0

87,3560.7

100.0

38,9730.3

100.0

33,983

0.3
1.5

Fukuoka Bldg.

(additional acquisition in 7th fiscal period )1

1

JPR Ichigaya Bldg.

9

100.0

153,058

1.3

9

100.0

170,841

Oval Court Ohsaki Mark West

3

100.0

187,748

1.6

3

100.0

187,256

1.6

83.7

218,1301.9

99.1

190,741

1.6

Shinjuku Square Tower(additional acquisition in 14th fiscal period )Retail% of
Total

Kanematsu Bldg. Annex
Shin-Kojimachi Bldg.

Tokyo
CBDs

RentalNumber
Occupancy RevenuesofRate (%)(thousands
Tenantsof yen)

% of
Total

Kanematsu Bldg.

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

Office20th Fiscal Period (from July 1, 2011
to Dec. 31, 2011)

21

23

83.7

3,351

0.0

99.1

2,930

0.0

BYGS Shinjuku Bldg.

21

85.1

538,412

4.7

24

97.3

506,640

4.3

Across Shinkawa Bldg. Annex

3

80.1

43,105

0.4

4

100.0

33,3900.3

Shinjuku Center Bldg.

24

90.0

457,860

4.0

22

87.5

470,795

4.0

Minami Azabu Building

1

100.0

(Note 2)

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

Shinagawa Canal Building

4

100.0

67,363

0.6

4

100.0

68,100

Rokubancho Building

1

100.0

(Note 2)

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

JPR Harajuku Building

7

88.5

243,048

2.1

7

88.5

223,144

Tokyo Tatemono Kyobashi Bldg.

2

100.0

(Note 2)

(Note 2)2100.0(Note 2) (Note 2)

JPR Nihonbashi-horidome Bldg.

7

100.0

178,874

1.6

7

100.0

198,390

JPR Sendagaya Bldg.

5

94.1

127,304

1.1

―

5

89.9

268,841

2.3

8

98.4

74,325

0.6
2.9

―

―

0.6
1.9
1.7

Ginza Sanwa Bldg.

―

JPR Shibuya Tower Records Bldg.

1

100.0

345,576

3.0

1

100.0

345,576

JPR Daikanyama

4

100.0

41,297

0.4

4

100.0

38,8490.3

JPR Jingumae 432

5

89.8

62,498

0.5

5

89.8

69,145

0.6

Shinjuku Sanchome East Bldg.

1

100.0

74,499

0.6

1

100.0

74,498

0.6

Yurakucho Ekimae Building(Yurakucho Itocia)

1

100.0

(Note 2)

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

Arca East

6

100.0

258,569

2.2

4

85.3

229,779

2.0

JPR Chiba Bldg.

30

84.6

114,724

1.0

31

85.4

120,799

1.0

JPR Yokohama Nihon Odori Bldg.

13

97.2

126,344

1.1

13

100.0

128,669

1.1

Shinyokohama 2nd Center Bldg.

12

85.5

50,639

0.4

13

85.5

50,141

0.4

Kawaguchi Center Bldg.

37

82.1

404,174

3.5

36

83.2

379,973

3.2

JPR Ueno East Bldg.

5

168,553
60,54388,599239,567

1.5
0.5
0.8
2.1

6
17

141,978
61,346
91,725
240,186

1.2
0.5
0.8
2.0

Rise Arena Bldg.

1

71.8
100.0
96.1
100.0

1

83.6
100.0
100.0
100.0

Yume-ooka Office Tower

34

88.4

315,801

2.7

33

87.9

322,526

2.7

Olinas Tower

12

98.6

1,153,362

10.0

12

98.6

1,120,647

9.5

Tokyo Tatemono Yokohama
Building

13

100.0

304,889

2.6

13

100.0

308,348

2.6

Tanashi ASTA

1

100.0

596,400

5.2

1

100.0

596,400

5.1

Cupo-la Main Bldg.

1

100.0

(Note 2)

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

Retail JPR Musashikosugi Bldg.

1

100.0

(Note 2)

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

Musashiurawa Shopping Square

3

100.0

129,061

1.1

3

100.0

129,061

1.1

Kawasaki Dice Bldg.

19

98.2

472,271

4.1

19

98.2

470,553

4.0

Niigata Ekinan Center Bldg.

8

99.3

132,562

1.1

8

100.0

133,210

1.1

Tokyo Tatemono Honmachi Bldg.

10

78.0

52,737

0.5

10

78.0

107,667

0.9

JPR Hakata Bldg.

28

98.9

150,528

1.3

25

91.3

149,576

1.3

JPR Naha Bldg.

16

87.0

91,347

0.8

18

93.8

94,5480.8

Sompo Japan Sendai Bldg.

12

100.0

183,486

1.6

12

99.9

194,779

1.7

Sompo Japan Wakayama Bldg.

16

96.8

120,168

1.0

14

88.4

118,875

1.0

Tenjin 121 Bldg.

12

79.4

91,660

0.8

13

91.4

90,2190.8

JPR Dojima Bldg.

8

89.0

107,630

0.9

9

100.0

120,625

1.0

JPR Hakata-chuo Bldg.

5

100.0

78,615

0.7

5

100.0

71,922

0.6

JPR Nagoya Fushimi Bldg.

3

66.6

65,472

0.6

3

89.7

90,761

0.8

JPR Umeda Loft Bldg.

1

100.0

402,411

3.5

1

100.0

402,411

3.4

Benetton Shinsaibashi Bldg.

1

100.0

(Note 2)

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

Office Tachikawa Business Center Bldg.

(additional acquisition in 11th fiscal period )GreaterTokyo

OfficeOther
CitiesRetail17

Housing Design Center Kobe

1

100.0

(Note 2)

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

JPR Chayamachi Bldg.

7

100.0

145,268

1.3

7

100.0

139,701

1.2

493

94.7

11,529,624

100.0

501

95.6 11,772,766

100.0

Total

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

41

(4) Status of Other Properties
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Acquired
Properties on P39.
There is no incorporation of main specific assets which are main investment targets of JPR other than listed on
P39 as of the end of 20th period.

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

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

Property Name

Location

PurposeSchedule

Total
Value

Payment
during the20th Fiscal
PeriodAmountAlreadyPaid

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

3rd phase of replacement of air
conditioning units

Jan. 2012~
Jun. 2012

184

―

―

Shinjuku Center Bldg.

Shinjuku Ward,Tokyo

2nd phase of renewal of
passenger elevators

Sep. 2010~
Mar. 2012

93

16

42

Minami Azabu Bldg.

Mianto Ward,Tokyo

Replacement of air conditioningunits

May 2012~
Jun. 2012

83

―

―

Shinyokohama 2nd Center
Bldg.

Yokohama City,
Kanagawa

Replacement of air conditioning
units

Apr. 2012~
Jun. 2012

66

―

―

Ginza Sanwa Bldg.

Chuo Ward,Tokyo

2nd phase of replacement of air
conditioning units

Mar. 2012~
Jun. 2012

46

―

―

Kawaguchi Center Bldg.

Kawaguchi City, Renewal of integrated control
SaitamaboardsMar. 2012~
Mar. 2012

30

―

―

Shinjuku Center Bldg.

Shinjuku Ward,
Tokyo

Aug. 2011~
Jan. 2012

23

―

―

2nd phase of replacement of
toilets(2) Capital Expenditures during the 20th Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during
the 20th period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain andenhance tenant satisfaction, as well as renovation of common-use areas and installation of office automation
floors for leased offices with the aim of attracting new tenants. In addition, aside from these constructions,
JPR conducted construction of 343 million yen (Note), which was appropriated as expenditures for repair andmaintenance.
Property Name

Location

PurposeBYGS Shinjuku Bldg.

2nd phase of replacement of 4th, 7th
Shinjuku Ward, Tokyo - 10th and 12th floor air conditioningunits

JPR Harajuku Bldg.

Shibuya Ward, Tokyo

JPR Ningyo-cho Bldg.

PeriodConstruction
Expenses(millions of yen)Jul. 2011~
Dec. 2011

142

Replacement of 4th and 6th - 9th
floor air conditioning units

Apr. 2011~
Dec. 2011

69

Chuo Ward, Tokyo

Replacement of 6th - 8th floor air
conditioning units

Aug. 2011~
Sep. 201145

Ginza Sanwa Bldg.

Chuo Ward, Tokyo

1st phase of replacement of air
conditioning units

Oct. 2011~
Dec. 201135

Housing Design Center Kobe

Kobe City, Hyogo

Renewal of central monitoring boards

Sep. 2011~
Dec. 201134

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1st phase of renewal of rising pipes in Mar. 2011~
toilets
Jul. 201123

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

2nd phase of replacement of fireproof Oct. 2011~
materials in passenger elevator shafts Nov. 2011

22

Repair of common areas, installation of officeautomation floors and air conditioners

237

Other Properties

Total

611

(Note) Expenditures for repair and maintenance included 8 million yen of construction management fees paid to construction management companies as wellas the amounts for repair and maintenance constructions themselves.

43

(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans

JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal
reserve of profits) such as depreciation in order to conduct large-scale repairs and maintenance work, based onlong-term repairs and maintenance plans for individual properties.

(Millions of yen)

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

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

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

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

20th
Fiscal Period(July 1, 2011 Dec. 31, 2011)

Balance of deposits at
beginning of current period

783

731

857

737

767

Deposits during the period

391

238

121

404

389

443

112

241

374

410

731

857

737

767

746

Operation Period

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

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

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

20th Fiscal Period (July 1, 2011- Dec. 31, 2011)(a) Asset Management Fees (Note)

415,874

421,613

Fixed compensation

75,00075,000

Incentive-based compensation 1

213,692

216,723

Incentive-based compensation 2

127,182

129,890(b) Administrative Service and Custodian Fees

71,07474,659(c) Directors' Fee

6,600

6,600

(d) Trust Fees

49,30043,737(e) Other Expenses

87,138105,346

629,988

651,956

Total(Note) Aside from the amounts of the asset management fees entered above, a total 8,500 thousand yen for the 20th fiscal period has been paid for asset managementof the acquired properties and has been included in the book value of each property.

(2) Status of Borrowings

As of December 31, 2011 JPR has the following borrowings.
Category

LenderResona Bank, Limited(Note 10)Mizuho Corporate
Bank, Ltd.
Mitsubishi UFJ
Trust and Banking
Short-Term Corporation (Note 10)
Borrowings Mizuho Trust &Banking Co., Ltd.

Drawdown
DateJul. 2, 2010

4,000

Jul. 4, 2011
Jul. 2, 2010

1,000

Dec. 27, 2010

1,000

Jul. 4, 2011
Dec. 27, 2010

3,000

Jul. 4, 2011
Dec. 27, 2010

1,000

Jul. 4, 2011

Aozora Bank, Ltd.
Aug. 26, 2011
(Note 10)
Bank of TokyoAug. 29, 2011
Mitsubishi UFJ, Ltd.
Sumitomo MitsuiAug. 29, 2011
Banking Corporation
Total

44

Balance as of Balance as of
Average
July 1, 2011 Dec. 31, 2011 Interest Rate
(millions of(millions of(%) (Note 1)
yen)
yen)
(Note 2)

―

―

2,000

0.859

Jul. 4, 2011

0.758

Jul. 4, 2012

―
―

0.859

Jul. 4, 2011

0.859

Jul. 4, 2011

―

0.758

Jul. 4, 2012

0.859

Jul. 4, 2011

2,000

―

1,000

0.758

Jul. 4, 2012

―

2,000

0.750

Aug. 26, 2012

―

2,000

0.751

Jul. 4, 2012

1,400

0.751

Jul. 4, 2012

12,400

―

0.758
0.859

Repayment
MethodUse

Remarks

Principal lump
Unsecured/
Jul. 4, 2012 sum repayment (Note 3) Unguaranteed/
Non-subordinatedJul. 4, 2011 on maturity――
10,000―
2,000

RepaymentDate(2) Status of Borrowings (Continued)
Category

Drawdown
Date

LenderDevelopment Bank of JapanInc.
Mizuho Corporate Bank, Ltd.
MBank of Tokyo-Mitsubishi
UFJ, Ltd.
Sumitomo Mitsui Banking
Corporation
Zenkyoren (National Mutual
Insurance Federation ofAgricultural Cooperatives)

Current
Portion of Mitsubishi UFJ Trust andLong-term Banking Corporation
Borrowings The Hachijuni Bank, Ltd.

Sompo Japan Insurance Inc.
The Chugoku Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Iyo Bank, Ltd.
Aozora Bank, Ltd.

Balance Balance
Averageas of July as of Dec.
Interest Rate
1, 2011 31, 2011(%) (Note 1)(millions (millions(Note 2)of yen)of yen)Repayment
Date

Repayment
MethodMar. 31, 2009
Jun. 26, 2009
Jun. 26, 2009

50
200
200

50
200
200

1.740
3.190
2.449

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

Jun. 26, 2009

166

166

2.390

(Note 7)(Note 7)

Jun. 29, 2009

100

100

2.440

(Note 8)(Note 8)

Nov. 24, 2005

―

5,000

1.453 Nov. 27, 2012

Aug. 29, 2006
Jun. 26, 2009
Dec. 26, 2006
Apr. 11, 2007
Jun. 26, 2009
Apr. 11, 2007
Apr. 11, 2007
Apr. 11, 2007
Aug. 26, 2008
Jun. 27, 2009

6,000
1,000
1,000
2,000
2,000
2,000
2,000
1,000
3,400
―
21,116
5,000

―
1,000
1,000
2,000
2,000
2,000
2,000
1,000
―
900
17,616―1.734 Aug. 29, 2011
2.156 Jun. 27, 2012
1.642 Apr. 11, 2012
Principal lump
1.676 Apr. 11, 2012 sum repayment
2.156 Jun. 27, 2012 on maturity
1.676 Apr. 11, 2012
1.676 Apr. 11, 2012
1.676 Apr. 11, 2012
1.593 Aug. 26, 2011
2.076 Jul. 3, 2012

2,000

2,000

1.725 Mar. 26, 2015

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

1,000
1,000
1,000
1,000
1,000
2,000
2,000
820
3,300
5,300
3,000

Total
Zenkyoren (National Mutual
Nov. 24, 2005
Insurance Federation ofMar. 26, 2008
Agricultural Cooperatives)
Dec. 26, 2006
Taiyo Life Insurance Company Jun. 4, 2008
Sep. 24, 2010
Dec. 26, 2006
Daido Life Insurance Company
Feb. 5, 2008
Dec. 27, 2006
Sumitomo Life Insurance
Company
Jun. 4, 2008
Mar. 31, 2009
Development Bank of JapanInc.
Jun. 26, 2009
Jun. 26, 2009
May 28, 2010
Mizuho Corporate Bank, Ltd.
Feb. 4, 2011

5,000

5,000

Jun. 26, 2009
Bank of Tokyo-Mitsubishi UFJ, May 28, 2010

4,502
3,000

4,419
3,000

2.390
(Note 7)1.279 Nov. 27, 2013

(Note 7)Mar. 25, 2011

5,000

5,000

Principal lump
sum repayment
1.198 Mar. 25, 2016 on maturity

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

2,700
3,000
900
1,000

2,650
3,000
―
1,000

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

(Note 8)Sep. 7, 2009

5,000

5,000

3.440 Sep. 6, 2019Feb. 4, 2010
May 28, 2010

1,000
2,000

1,000
2,000

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

Feb. 4, 2010

3,000

3,000

1.376 Feb. 4, 2013

Sumitomo Mitsui Banking
Corporation
Long-Term
Borrowings Aozora Bank, Ltd.
American Family Life
Assurance Company ofColumbus
ORIX Bank Corporation(Note 11)The Shinkumi FederationBank
Mizuho Trust & Banking Co.,Ltd.
Shinsei Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Chugoku Bank, Ltd.
The Hachijuni Bank, Ltd.
The Nishi-Nippon City Bank,
Ltd.
Meiji Yasuda Life Insurance
Company
Mitsubishi UFJ Trust andBanking Corporation
Meiji Yasuda Life Insurance
Company (Note 12)
Total

Remarks

Unsecured/(Note 3) Unguaranteed/
Non-subordinated1.453 Nov. 27, 2012
1.858 Dec. 27, 2013
2.035 Jun. 4, 2013 Principal lump
1.275 Sep. 24, 2015 sum repayment
on maturity
1.858 Dec. 27, 2013
1.666 Feb. 5, 2015
1.858 Dec. 27, 2013
2.257 Jun. 4, 2015
1.740
(Note 4)(Note 4)3.190
(Note 5)(Note 5)2.449
(Note 6)(Note 6)
1.279 Nov. 27, 2013
Principal lump
sum repayment
1.414 Feb. 4, 2016 on maturity

Ltd.

Use

Feb. 4, 2010

3,000

3,000

1.376 Feb. 4, 2013

Sep. 24, 2010
Sep. 24, 2010
Jul. 7, 2011
Sep. 24, 2010
Sep. 24, 2010

2,000
1,000
―
1,000
1,000

2,000
1,000
2,000
1,000
1,000

1.070 Sep. 24, 2013
1.070 Sep. 24, 20131.170 Jul. 7, 2016
1.070 Sep. 24, 2013
1.070 Sep. 24, 2013

May 27, 2011

3,000

3,000

1.149 May 27, 2016

Jun. 21, 2011

4,000

4,000

1.800

Aug. 29, 2011

―

5,000

1.184 Aug. 29, 2017

(Note 9)Aug. 29, 2011

―

1,000

Mar. 28, 2003

4,400

―

84,147

81,489Unsecured/
Unguaranteed/(Note 3)

Non-subordinatedPrincipal lump
sum repayment
on maturity(Note 9)0.924 Aug. 31, 2015 Principal lump
sum repayment
on maturity
1.750 Mar. 28, 2013

Secured/
Unguaranteed/
Non-subordinated(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)The average interest rates are weighted-average figures during the period and are rounded to the third decimal point. Furthermore, fees related to loan arrangement paid to the above lenders are not included.
Short-term borrowings are floating-rate borrowings. Long-term borrowings are fixed-rate borrowings.
Funds are mainly used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses) , repaying borrowings and amortization of corporate bonds.
The borrowings are subject to repayment of 25 million yen on Jun. 27, 2009 and hereafter every 6 months. In addition, repayment of 820 million yen will be made on the maturity date, Jun. 27, 2013.
The borrowings are subject to repayment of 100 million yen on Dec. 27, 2009 and hereafter every 6 months. In addition, repayment of 2,100 million yen will be made on the maturity date, Jun. 27, 2019.
The borrowings are subject to repayment of 100 million yen on Dec. 25, 2009 and hereafter every 6 months. In addition, repayment of 5,100 million yen will be made on the maturity date, Jun. 27, 2014.
The borrowings are subject to repayment of 83 million yen on Dec. 27, 2009 and hereafter every 6 months. In addition, repayment of 4,253 million yen will be made on the maturity date, Jun. 27, 2014.
The borrowings are subject to repayment of 50 million yen on Dec. 25, 2009 and hereafter every 6 months. In addition, repayment of 2,550 million yen will be made on the maturity date, Jun. 27, 2014.
Concerning the 4,000 million yen in long-term loans payable borrowed from Meiji Yasuda Life Insurance Company on June 21, 2011, JPR agreed with the lender on February 10, 2012 to change therepayment method from lump sum repayment on maturity date, June 21, 2018, to repayment of 66 million yen on the 27th day of every sixth month, starting on June 27, 2012 and repayment of 3,208
million yen on June 21, 2018.
(Note 10) Of the 4,000 million in short-term loans payable borrowed from Resona Bank, Limited on July 4, 2011, JPR repaid 2,000 million yen prior to the repayment date on November 4, 2011. Of the 3,000 million
yen in short-term loans payable borrowed from Mitsubishi UFJ Trust and Banking Corporation on July 4, 2011, JPR repaid 1,000 million yen prior to the repayment date on November 4, 2011. Of the 3,400
million yen in short-term loans payable borrowed from Aozora Bank, Ltd. on August 26, 2011, JPR repaid 1,400 million yen prior to the repayment date on November 4, 2011.
(Note 11) ORIX Trust and Banking Corporation was renamed to ORIX Bank Corporation on October 1, 2011.
(Note 12) JPR repaid on July 8, 2011, ahead of the maturity date, 4.4 billion yen long-term borrowings from Meiji Yasuda Life Insurance Company undertaken on Mar. 28, 2003.

45

(3) Corporate Bonds

Details of corporate bonds outstanding as of December 31, 2011 are as follows.
Name

Issue Date

Balance as ofJuly 1, 2011
(millions of yen)

Balance as ofDec. 31, 2011
(millions of yen)

5,000

5,000

Coupon Rate(per annual)

Maturity
Date

Third Series ofCorporate
Bonds

Feb. 12, 2004

Fifth Series ofCorporate
Bonds

Nov. 4, 2004

5,000

―

1.44

Nov. 4,2011

Sixth Series ofCorporate
Bonds

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4,2014

Seventh Series ofCorporate
Bonds

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14,2026

Eighth Series ofCorporate
Bonds

Jul. 23, 2007

9,000

9,000

1.85

Jul. 23,
2012

Ninth Series ofCorporate
Bonds

Jul. 23, 2007

6,000

6,000

2.10

Jul. 23,2014

Eleventh Series ofCorporate
Bonds

Mar. 12, 2010

6,000

6,000

1.68

Mar. 12,2015

Twelfth Series ofCorporate
Bonds

May 21, 2010

7,000

7,000

1.27

May 21,
2015

Thirteenth Seriesof Corporate Bonds Oct. 25, 2011

―

7,000

0.95

Oct. 25,
2016

Fourteenth Series Oct. 25, 2011of Corporate Bonds

―

2,000

1.34

Oct. 25,2018

47,50051,500

Total

2.32

Redemption

Feb. 12,2014

Use

Remarks(Note 1)
Purchase ofproperties
andrepayment ofborrowings

Bulletpayment(Note 2)

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

Acquisitions and Sales during the 20th Fiscal Period(1) Aqcuisitions and Sale of Real Estate and Asset-Backed Securities
There were no acquisitions or sales of real estate and asset-backed securities.
Acquisition
Type ofAssetsReal Estate
Name

AcquisitionPrice
Acquired Date (thousandsofyen) (Note)

Ginza
August 29,
Real
Estate Sanwa Bldg.
2011
Total

Sale

Sale Date

Sale Profit andSale Price (A)Value (B) Difference (C) Sale Expense
Loss(thousands of Book
(D)
(thousands of (thousands of (thousands(C)-(D)
yen)
of
yen)
yen)
(thousandsof(Note)
yen)
yen)

3,400,000

―

―

―

―

―

―

3,400,000

―

―

―

―

―

―

(Note 1) V alues of "acquisition price" or "sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokerage fees)
required for acquisition or sale of the relevant real estate.

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

46

(3) Survey on Values of Specified Assets, etc.
Acquisition or Sale

Real Estate NameTransaction Date

Acquisition

Ginza Sanwa Bldg.

August 29, 2011

Acquisition Price or Sale Price (Note 1) Survey Value of Specified Assets (Note 2)(thousands of yen)(thousands of yen)

3,400,000

3,420,000(Note 1) V alues of "acquisition price or sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokerage fees)
required for acquisition or sale of the relevant real estate.
(Note 2) S urveys on the value of the specified assets indicated above were conducted by Ernst & Young ShinNihon LLC at times of property acquisition or sale based on the Report No.
23, "surveys on values of specified assets, etc. of investment trusts and investment corporations," issued by the Industry Audit Committee of the Japanese Institute of Certified
Public Accountants. Furthermore, aside from the value surveys shown above, JPR has received survey reports on the location, address and other items needed for identifying
the relevant real estate, etc.

(4) Transactions with Interested Parties and Major Shareholders
A.Transaction Status
No transaction of specified assets or other deals with interested parties were conducted during the 20th fiscal
period.
B.Value of Fee Expenses
Category

Property Brokerage Fees

(Thousands of yen)
Total Paid Fees(A)

Breakdown of Transaction with Interested Parties
Paid Party

50,000 Tokyo Tatemono Real Estate Sales Co., Ltd.

50,000100.0

198,606

85.3

232,897 Yasuda Real Estate Co., Ltd.

7,458

3.2

Yuraku Real Estate Co., Ltd.

3,361

1.4

Tokyo Tatemono Co., Ltd.

410,603

80.2

Yasuda Real Estate Co., Ltd.

22,575

4.4

Tokyo Tatemono Co., Ltd.

6,235

40.4

Yasuda Real Estate Co., Ltd.

3,015

19.5

7,937

58.3

Tokyo Tatemono Co., Ltd.
Management Fees
(Note 2)

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

Outsourcing Fees

511,969

Tenant Brokerage Fees, etc.

15,438Advertising Cost of the Company

13,616 E-State Online Co., Ltd.

(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreement with JPR and isregulated as designated in Article 123 of the Enforcement Order of the Investment Trusts and Investment Corporations Law and article 26-27 of the regulation on management
reports in regard to investment trusts and investment corporations of The Investment Trusts Association, and the major shareholders of the asset management company
regulated defined in Article 29-4-2 of the Financial Instruments and Exchange Law.
(Note 2) The management fees indicated in the above table include construction management fees (total of 14,107 thousand yen for JPR) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties during the 20th fiscal period.
Tokyo Tatemono Co., Ltd.
Tokyo Tatemono Tecno-build Co., Ltd.
Tokyo Real Estate Management Co., Ltd.
Shinjuku Square Tower Management Co., Ltd.
Yasuda Real Estate Co., Ltd.
Taisei Corporation
Yuraku Real Estate Co., Ltd.

326,097 thousand yen
111,000 thousand yen
29,800 thousand yen
88,561 thousand yen
16,403 thousand yen
49,010 thousand yen
349 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent Work
Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct
the class 1 financial instruments transaction business, class 2 financial instruments transaction business, land andbuilding transaction business, or real estate syndication business, and has no such transactions with JPR.

47

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

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

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

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

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

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

(2) Units HeldThe number of investment units held by Tokyo Realty Investment Management, Inc. has remained at 100 units
through December 31, 2011 with the total investment unchanged at 20 million yen. The amount of units held isimmaterial versus the total units outstanding of JPR.

48

Other(1) Notice
General Meeting of Unitholders

The eighth General Meeting of Unitholders of JPR was held on September 6, 2011.
Items approved at the General Meeting of Unitholders are summarized below.
AgendaSummary

Partial amendments to the
Articles of Incorporation

Amendments were made to the following items of the Articles of Incorporation.
■ Corrections and such were made to the necessary terminology in accordance withthe revisions to the Ordinance for Enforcement of the Special Taxation Measures Law
designating the requirement concerning the offering of investment units to be mademainly in the domestic market.
■ A provision was added that specifies rules in the Articles of Incorporation concerning
the period during which a resolution on the appointment of substitute officers remains
effective.
■ Corrections were made to the necessary terminology in accordance with the revisions to
the Special Taxation Measures Law designating requirements concerning reduction of theregistration and license tax on the registration of the transfer of real estate ownership.
■ Corrections and such were made in order to change the method to calculate the amountof incentive-based compensation 2, which is a part of the asset management fees JPR pays
to the asset management company.

Appointment of one
Executive Officer

Hirohito Kaneko was appointed as Executive Officer.

Appointment of one
Satoshi Okubo was appointed as Substitute Executive Officer.
Substitute Executive Officer
Appointment of two
Supervising Officers

Sosuke Yasuda and Masato Denawa were appointed as Supervising Officers.

Appointment of one
Substitute Supervising
Officer

Masaaki Sugiyama was appointed as Substitute Supervising Officer.

Board of Directors of JPR

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

Approved Item

September 26, 2011

Execution of the Memorandum
Concerning Amendments to the AssetManagement Agreement

October 11, 2011

Overview
Reviews were made to necessary articles in accordancewith the amendments made to the Articles ofIncorporation of JPR as well as to relevant laws andregulations.

Administrative services concerning issuance of JPR’s
corporate bonds were assigned to Mitsubishi UFJ Morgan
Stanley Securities Co., Ltd., Mizuho Securities Co., Ltd.
and Merrill Lynch Japan Securities Co., Ltd., on the
Assignment of administrative services
condition that the issuance terms of the 13th Series ofassociated with the issuance of the 13th Unsecured Bonds are decided by the Executive Officer.
Series and 14th Series of Unsecured
In addition, administrative services concerning issuance
Bonds (Note)of JPR’s corporate bonds were assigned to Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd. and Mizuho Corporate
Bank, Ltd., on the condition that the issuance terms of
the 14th Series of Unsecured Bonds are decided by the
Executive Officer.

(Note) A comprehensive resolution was made at the Board of Directors Meeting held on April 27, 2011 concerning the issuance of investment corporation bonds of JPR. Based on the
resolution, JPR issued the 13th Series and the 14th Series of Unsecured Bonds on October 21, 2011.

(2) Other

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

49Balance Sheets(As of June 30, 2011 and December 31, 2011)(Thousands of yen)
End of 19th Fiscal Period End of 20th Fiscal Period(information only)(as of June 30, 2011)(as of December 31, 2011)% Change

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets￥ 14,619,039
13,832,244
209,621
151,521
11
5,354
28,817,793￥ 13,647,529
13,132,684
168,364
218,622―
4,594
27,171,795(5.7%)

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

50,640,038(6,749,650)
43,890,388
75,389,949(19,394,293)
55,995,656
40,334(6,726)33,608109,241(41,402)67,839572,397(244,149)
328,248
1,407,495(921,208)
486,287
37,912(19,653)
18,259104,732(71,072)
33,660106,648,291
120,491,113
90,914―
328,084,267

0.7%

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

4,794,109
7,146
4,801,255(0.0%)

49,520465,803515,323
331,057,425

49,520422,583
472,103333,357,626(8.4%)
0.7%

129,651
129,651￥ 360,004,870

169,685
169,685￥ 360,699,107

30.9%
0.2%

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

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

50

(Thousands of yen)
End of 19th Fiscal Period(information only)(as of June 30, 2011)(as of December 31, 2011)￥ 1,445,952

End of 20th Fiscal Period% Change

Liabilities
Current liabilities
Operating accounts payable￥ 1,509,373

Short-term loans payable

10,000,000

12,400,000

Current portion of long-term loans payable

21,116,000

17,616,000

Current portion of investment corporation bonds

5,000,000

9,000,000

Accounts payable-other499,538

523,418

Accrued expenses

327,241

337,468

Income taxes payable
Accrued consumption taxes
Advances received

605

605

189,967

126,906

1,599,028

1,759,735―

Provision for loss on disaster

3,093

Other

35,000―40,279,847

43,210,085

Total current liabilities

7.3%

Noncurrent liabilities
Investment corporation bonds

42,500,000

42,500,000

Long-term loans payable

84,147,000

81,489,000

Tenant leasehold and security deposits

7,342,133

7,711,990

Tenant leasehold and security deposits in trust

10,283,837

10,147,460

Total noncurrent liabilities

144,272,970

141,848,450(1.7%)

Total liabilities
Net assets
Unitholders’ equity

184,552,817

185,058,535

0.3%

Unitholders' capital

171,339,818

171,339,818

Deposits for advanced depreciation

73,94673,946

Total voluntary deposits

73,94673,946

4,038,287

4,226,806

Surplus
Voluntary deposits

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

Total net assets
Total liabilities and net assets

4,112,234

4,300,752

4.6%

175,452,052

175,640,571

0.1%

175,452,052

175,640,571

0.1%￥ 360,004,870￥ 360,699,107

0.2%(Note) See accompanying Notes to Financial Statements.

51

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

19th Fiscal Period

20th Fiscal Period(information only)(January 1, 2011 – June 30, 2011) (July 1, 2011 – December 31, 2011)% Change

Operating revenue
Rent revenue-real estate￥ 11,529,624￥ 11,772,766

Total operating revenue
Operating expenses

11,529,624

11,772,766

5,296,139

5,357,207

Asset management fee

Expenses related to rent business

415,874

421,613Administrative service and asset
custody fees

71,07474,659Directors' compensations

6,600

6,600

Trust fees

49,30043,737

Other operating expenses

87,138105,346

Total operating expenses
Operating income
Non-operating income

5,926,127

6,009,163

1.4%

5,603,496

5,763,602

2.9%Interest income

3,998

2,790

Income on settlement ofmanagement association accounts

42,132

5,486

Other

Total non-operating income
Non-operating expenses

5,847

2,514

51,97910,791

Interest expenses

981,853944,718

Borrowing expenses

105,648

147,084

Interest expenses on investment
corporation bonds

469,446457,769

Amortization of investment corporationbond issuance costs

20,911

20,139

Other

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

Total extraordiary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed losses)(Note) See accompanying Notes to Financial Statements.

52

2.1%

(79.2%)

2,148

3,681

1,580,007

1,573,392(0.4%)

4,075,468

4,201,000

3.1%

64,122―64,122―

4,011,345

4,201,000

605

605

―
4.7%

11

11

616

616

0.0%

4,010,728

4,200,383

4.7%

27,55826,422(4.1%)￥ 4,038,287￥ 4,226,806

4.7%

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

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

20th Fiscal Period(July 1, 2011 – December 31, 2011)

Unitholders' equity
Unitholders' capital
Balance at the beginning of current period￥ 171,339,818￥ 171,339,818

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

171,339,818

171,339,818

73,94673,946

Surplus
Voluntary deposits
Balance at the beginning of current period
Change of items during the period
Total change of items during the period
Balance at the end of current period―－

73,94673,946

4,088,758

4,038,287(4,061,200)(4,011,865)

4,010,728

4,200,383

Unappropriated retained earnings (undisposed
losses)Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period(50,471)

188,518

4,038,287

4,226,806

4,162,705

4,112,234

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

188,518

4,112,234

4,300,752

175,502,523

175,452,052

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 the end of current period(50,471)

188,518

175,452,052

175,640,571

175,502,523

175,452,052

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

Balance at the end of current period(50,471)

188,518￥ 175,452,052￥ 175,640,571(Note) See accompanying Notes to Financial Statements.

53

Notes to Financial Statements
Basis of Presenting Financial Statements
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its
financial statements in accordance with accounting principles generally accepted in Japan (JapaneseGAAP), including provisions set forth in the Investment Trust Law, the Company Law and the related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR,
which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial
statements, certain reclassifications have been made to the financial statements issued domestically inorder to present them in a format which is more familiar to readers outside Japan. Certain information in
the business report and supplementary schedule has been omitted. 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 period ends at the end of June and December. JPR's 20th accounting period began on
July 1, 2011 and ended on December 31, 2011.

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

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

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

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

3. Standards for Recording Revenues and Expenses
Accounting Treatment of Taxes on Properties and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR adopts the methodof charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental
expenses. Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers
during the first fiscal period as an acquisition cost, not as expenses, in connection with the acquisition ofreal estate or entrusted beneficiary interest with real estate as entrusted property. During the 20th fiscal
period, the amount equivalent to the property taxes included as an acquisition cost of real estate totaled
11,832 thousand yen.

54

4. Other Significant Items Fundamental to Preparing the Financial Statements(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted
properties as well as all revenue and expense accounts generated by the property in trust arerecorded in relevant accounts on the balance sheets and statements of income.
Fur thermore, the following material accounts are separately stated in the balance sheet for
properties in trust recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools,
furniture and fixtures in trust, land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

Additional information
Application of the Accounting Standards for Accounting Changes and Error Corrections
The Accounting Standard for Accounting Changes and Error Corrections (ASBJ Statement No. 24 issued
on December 4, 2009) and the Guidance on Accounting Standard for Accounting Changes and Error
Corrections (ASBJ Guidance No. 24 issued on December 4, 2009) are applied, starting with accountingchanges and corrections of past errors to be conducted after the beginning of the 20th fiscal period.

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

End of 19th Fiscal Period
Assets pledged as collateral are as follows:
Cash and deposits in trust
Buildings (net)
Buildings in trust (net)
Structures in trust (net)
Machinery and equipment (net)
Machinery and equipment in trust (net)
Tools, furniture and fixtures in trust (net)LandLand in trust
Other (intangible assets)
Total(information only)(as of June 30, 2011)￥ 595,995
130,1142,097,116
3,532
4,280
6,544
1,498
399,183
4,920,350
140￥ 8,158,754

End of 19th Fiscal Period
Secured liabilities are as follows:
Long - term loans payable
Tenant leasehold and security deposits
Total(information only)(as of June 30, 2011)￥ 4,400,000
15,536￥ 4,415,536

End of 20th Fiscal Period(as of December 31, 2011)￥
128,245

4,109

399,183￥ 531,538

End of 20th Fiscal Period(as of December 31, 2011)￥15,536￥ 15,53655

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

End of 19th Fiscal Period(information only)(as of June 30, 2011)

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

End of 20th Fiscal Period(as of December 31, 2011)￥16,000,000￥28,000,000￥16,000,000￥28,000,000

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

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

End of 20th Fiscal Period(as of December 31, 2011)￥50,000

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

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

20th Fiscal Period(July 1, 2011 December 31, 2011)￥ 8,780,799
1,773,110
209,532
22,128
10,54729,318
10,825,436￥ 8,929,627
1,791,571
211,756
22,265
10,76830,607
10,996,596

Incidental income
604,478
Time-based parking revenues
10,053Cancellation charges
27,483
Income equivalent to expenses for restoration to as is condition
39,330
Other miscellaneous income
22,841
Subtotal
704,187￥11,529,624
Total rent revenue-real estate

680,935
8,812
42,92035,9007,600
776,169￥11,772,766

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

56￥520,250
625,439
1,068,605
28,743257,907
214,171555,064
1,911,469
114,487￥5,296,139￥510,719
711,022
1,061,353
28,499335,943
218,790
554,490
1,824,245
112,143￥5,357,207￥6,233,485￥6,415,559

Notes to Statements of Changes in Unitholders' Equity

19th Fiscal Period(information only)(January 1, 2011 June 30, 2011)
5,000,000 units
715,000 units

Total number of authorized units
The number of units outstanding

20th Fiscal Period(July 1, 2011 December 31, 2011)
5,000,000 units
715,000 unitsTax Effect Accounting
1. Breakdown of Main Causes for Deferred Tax Assets(Thousands of yen)

(Deferred tax assets)

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

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

20th Fiscal Period(July 1, 2011 December 31, 2011)

￥ 11
11
￥ 11

2. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the
Effective Tax Rate after Applying Tax Effect Accounting
19th Fiscal Period
20th Fiscal Period

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

(39.33%)
0.01%
0.01%

Property and Equipment Leased to JPR
19th Fiscal Period (information only)(January 1, 2011 – June 30, 2011)

20th Fiscal Period(July 1, 2011 – December 31, 2011)

No property and equipment leased to JPR

No property and equipment leased to JPR

57

Financial Instruments
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts
the asset management policy of paying heed to efficiently combining the procurement of long-term funds
that are stable and the procurement of short-term funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to
management for interest rate fluctuation risk and other hedging purposes. Please note that JPR is notengaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk
management by complying with the JPR Asset Management Guidelines and other rules and regulations. The
following outlines the description of individual financial instruments and the associated risks, and the risk
management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit
risks, but risks are managed through such measures as setting a minimum credit rating for the financial
institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/
redemption, but liquidity risks are managed through such measures as procuring funds from the capital
market by increasing capital, executing a commitment line agreement with the main lending financial
institutions, and also having statements of cash receipts and disbursements prepared by the financial division.
(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values basedon reasonable calculations when there is no market price. Certain assumptions, etc. are adopted in calculating
those values and there may be cases where the values will vary when different assumptions, etc. are adopted.
2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of June 30, 2011 and December 31, 2011,
and the difference between these amounts. Please note that the following tables do not include those forwhich discerning of estimated fair value is recognized to be extremely difficult (please refer to Note 3).
End of 19th Fiscal Period (information only) (as of June 30, 2011)(Thousands of yen)

Carrying Value

Estimated Fair Value(Note 1)

(Note 1)

￥ 14,619,039￥ 14,619,039

2) Cash and deposits in trust

13,832,244

13,832,244

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

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

123,811(21,116,000)(21,239,811)

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

25,636

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

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

7) Long-term loans payable
End of 20th Fiscal Period (as of December 31, 2011)(Thousands of yen)

Difference

Carrying Value

Estimated Fair Value(Note 1)

(Note 1)

￥ 13,647,529￥ 13,647,529

2) Cash and deposits in trust

13,132,684

13,132,684

3) Short-term loans payable(12,400,000)(12,400,000)

4) Current portion of long-term loans payable(17,616,000)(17,708,796)

92,796

5) Current portion of investment corporation bonds(9,000,000)(9,055,800)

55,8006) Investment corporation bonds(42,500,000)(43,131,115)

631,115￥ (81,489,000)￥ (83,544,955)￥2,055,955

1) Cash and deposits

7) Long-term loans payable

58

Difference￥(Note 1) Those stated under liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thus stated at that book value.
(3) Short-term loans payable
As these are settled within a short period of time and also have floating interest rates, the estimated fair value is approximately the same as the book value and is thusstated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
The estimated fair value of these are based on the method of calculating by discounting the sum total amount of principal and interest by the rate assumed as
being applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these, those with market price are calculated based on market price and those with no market price are calculated according to(4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since
it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits and the carrying value of tenant leasehold and security deposits in trust.

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

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

Tenant leasehold and security deposits in trust￥10,283,837

End of 20th Fiscal Period (as of December 31, 2011)(Thousands of yen)

Carrying Value
Tenant leasehold and security deposits￥7,711,990

Tenant leasehold and security deposits in trust￥10,147,460

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

Cash and deposits in trust￥13,832,244

End of 20th Fiscal Period (as of December 31, 2011)(Thousands of yen)Due in One Year or Less
Cash and deposits￥13,647,529

Cash and deposits in trust￥13,132,684(Note 4) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.

59

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

Due after Two
Years throughThree Years

Short-term loans payable￥10,000,000

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

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

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

Long-term loans payable￥5,200,000

End of 20th Fiscal Period (as of December 31, 2011)￥4,500,000￥14,200,000￥11,600,000(Thousands of yen)Due in One Year Due after One Yearor Less through Two Years

Short-term loans payable￥12,400,000

Investment corporation bonds￥9,000,000

Long-term loans payable￥17,616,000

Due after Two
Years throughThree Years￥16,000,000￥30,486,000￥12,103,000(Thousands of yen)

Due after Three Year Due after Four Year Due after Five Years
through Four Years through Five Years
Short-term loans payable
Investment corporation bonds￥13,000,000￥7,000,000￥6,500,000

Long-term loans payable￥7,200,000￥15,200,000￥16,500,000(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due
after the settlement of accounts.

60

Investment and Rental Properties
JPR owns urban office buildings and retail facilities for leasing in Tokyo and other regions. The following is the
carrying value, amount of increase (decrease) during current period and estimated fair value of these investment
and rental properties.

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

As of January 1, 2011

￥331,804,767

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

As of June 30, 2011

￥330,536,005

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

End of 20th Fiscal Period (as of December 31, 2011)
Carrying Value

As of July 1, 2011

￥330,536,005

Amount of
Increase (Decrease)
During Current Period￥2,344,615

As of December 31, 2011

Estimated Fair Value at
End ofCurrent Period￥332,880,621￥314,704,000(Note 1) The carrying value is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) during current period for investment and rental properties, the amount of increase is primarily attributable to acquisition of
Ginza Sanwa Bldg. (3,550,430 thousand yen).
(Note 3) The estimated fair value at end of current period is the appraisal value or survey value as appraised by an outside real estate appraiser.
The income (loss) in the 20th fiscal period for investment and rental properties are as presented in the “Notes to Statements of Income and Retained Earnings.”

61

Transactions with Interested Parties
End of 19th Fiscal Period (information only) (as of June 30, 2011)(Thousands of yen)

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

AssetcustodianMizuho Trust
Banking& Bankingbusiness andCo., Ltd.
trust business―Account

Balance at End
of Period(thousands of
yen)

―

―

Short-termloans payable￥1,000,000――

Long-termloans payable￥3,000,000

Interest
expenses￥24,722

Accruedexpenses￥1,728(Note) Transaction terms are determined based on prevailing market conditions.

End of 20th Fiscal Period (as of December 31, 2011)(Thousands of yen)

Percentage
Transactionof Number ofBusiness
Name ofAmountInvestment
Units
Attribute
Description or Held Among Transactions
Company, etc.
(thousands
Occupation Total Number ofof yen)Investment Units
Repaymentof short-term ￥1,000,000
loans payable
AssetcustodianMizuho Trust
Banking& Bankingbusiness andCo., Ltd.
trust business

―

62

―

―

Short-term
Short-term￥1,000,000
loans payableloans payable￥1,000,000

Long-termloans payable￥3,000,000―
Interest
expenses(Note) Transaction terms are determined based on prevailing market conditions.

Account

Balance at End
of Period(thousands ofyen)―￥24,642

Accruedexpenses￥1,635Per Unit Information

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

Total net assets per unit
Net income per unit

￥245,387￥5,609(Yen)

20th Fiscal Period(July 1, 2011 December 31, 2011)￥245,651￥5,874

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 warrants and convertible bonds are outstanding.
(Note) Net income per unit was calculated based on the following data:(Thousands of yen)

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

Net income
Amounts not attributable to ordinary unitholders
Net income attributable to ordinary investment units
Average number of units(July 1, 2011 December 31, 2011)￥4,010,728￥4,200,383￥4,010,728
715,000 units￥4,200,383
715,000 units

19th Fiscal Period

20th Fiscal Period

Distribution Information(information only)(January 1, 2011 June 30, 2011)

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

20th Fiscal Period￥4,038,287,297
4,011,865,000(5,611)￥
26,422,297(Yen)(July 1, 2011 December 31, 2011)￥4,226,806,051
4,201,340,000(5,876)￥25,466,051

In accordance with the distribution policy stipulated in Article 30-2 of the Articles of Incorporation, JPR
will be able to distribute only to the extent of the profits and needs to distribute in excess of 90% of JPR's
distributable income as stipulated in Article 67-15 of the Special Taxation Measures Law. Based on thispolicy, JPR decided on a total distribution of 4,201,340,000 yen for the 20th fiscal period (4,011,865,000
yen for the 19th fiscal period). This is the maximum value arrived at when the number of units outstanding(715,000 units) is multiplied by an integer, within the limit of retained earnings for the respective fiscal
period and within the limit of not placing a burden of additional income taxes on our unitholders.
Furthermore, JPR does not make cash distributions in excess of the profit as stipulated in Article 30-4 of the
Articles of Incorporation.

63

Report of Independent Auditors

64

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

Date(Thousands of yen)

19th Fiscal Period

20th Fiscal Period

June 30, 2011)

December 31, 2011)(January 1, 2011 -(July 1, 2011 -Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization￥ 4,011,345￥ 4,201,000

1,912,497

1,825,438

Amortization of investment corporation bond issuance costs

20,911

20,139

Increase (decrease) in provision for loss on disaster

3,093(3,093)

Interest income(3,998)(2,790)Interest expenses

1,451,299

1,402,487(33,467)

41,257

Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses

37,990(67,100)

Increase (decrease) in operating accounts payable

102,120(50,384)

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

32,839

Increase (decrease) in accrued consumption taxes

32,452(63,061)

Increase (decrease) in advances received

100,103

160,706

Other, net(29,080)(16,097)

Subtotal

7,577,304

7,481,343

Interest income received

3,998

2,790

(1,456,087)(1,392,260)

515

241

6,125,730

6,092,114

Purchase of property, plant and equipment(224,162)(3,933,256)

Purchase of property, plant and equipment in trust(160,979)(250,208)

Interest expenses paid
Income taxes (paid) refund

Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Purchase of intangible assets
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(5,000)―(208,068)(40,115)

128,448

410,015(225,754)(321,835)

197,310201,244(498,206)(3,934,156)

Increase in short-term loans payable―

16,800,000

Decrease in short-term loans payable―(14,400,000)

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities

Proceeds from long-term loans payable

17,000,000

8,000,000

Repayment of long-term loans payable(15,141,000)(14,158,000)―

8,939,826

Redemption of investment corporation bonds(3,000,000)(5,000,000)

Dividends paid

(4,059,636)(4,010,855)

Net cash provided by (used in) financing activities(5,200,636)(3,829,028)

426,887(1,671,070)

Proceeds from issuance of investment corporation bonds

Net changes in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

28,024,396

28,451,284￥ 28,451,284￥ 26,780,213

65

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

Notes to Statements of Cash Flows (Information only)(Thousands of yen)

Breakdown of cash and cash equivalents
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

66

19th Fiscal Period

20th Fiscal Period

As of June 30, 2011

As of December 31, 2011

￥14,619,039
13,832,244￥28,451,284￥13,647,529
13,132,684￥26,780,213(January 1, 2011 June 30, 2011)(July 1, 2011 December 31, 2011)

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

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

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

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

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

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

Real Estate Asset

Target Ratios

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

By Location

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

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

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

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

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

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

Tokyo CBDs
Greater Tokyo

Other Cities

68

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

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

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

Investment Standards
When investing in individual real estate properties, asset-backed securities that havereal estate as their primary investments, or other investments, the Company will, prior to
making the investment, perform a general evaluation that considers the current status, future
profitability, risk, location, building and facilities maintenance and management, deteriorationand obsolescence, earthquake resistance, rights, contracts with current tenants, environment,
topography, as well as other factors.
After acquisition of real estate, asset-backed securities that have real estate as their primary
investments or other investments, the Company will make ongoing and effective investments
in facilities and equipment so as to maintain and improve the value and competitiveness of theasset, and will seek to stabilize and expand profitability by increasing revenues and reducing
costs.
The major specific investment criteria of the Company are as follows:i) Geographical location
Real estate to be invested in will be located in the following areas:a) Major urban areas: CBDs in Tokyo, Yokohama, Kawasaki, Chiba, Saitama, Nagoya, Osaka,
Kyoto and Kobeb) Other government-designated cities: CBDs in Sapporo, Sendai, Hiroshima, Fukuoka,
Kitakyushu and othersc) Other core cities such as prefectural capitals with populations of 300,000 or more70

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

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

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

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

72Properties that, in terms of scale, location or general standpoint, are judged to contributeto an increase in total fund quality and that are expected to contribute to stably generating
dividends in the medium- to long-termviii) Selection guidelines concerning real estate acquisition ownership type
The Company acquires real estate under direct ownership or on an entrusted basis, acquiring
beneficiary interests to the property. The decision as to which form of ownership theCompany will take is determined after considering the requirements of the existing owner,
the cost of transferring rights and a number of other factors.

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

73

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

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

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

74

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

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

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

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

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

75

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

Distributable Amount

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

2 Determining Amount of Distribution

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

Retained Earnings

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

Distribution of Cash Exceeding Earnings

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

Method of Distribution

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

Extinctive Prescription

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

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Investor Information
Address of Japan Prime Realty Investment Corporation (JPR)
4-16 Yaesu 1-chome, Chuo-ku, Tokyo 103-0028, Japan

Date of Establishment
September 14, 2001

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders
More than once every two years

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

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

Web Site

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

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

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

Cash distributions September

AugustAnnouncement of the fiscal
period results

Appropriate disclosure
on web site

June

Fiscal period ends

April

March

February

Announcement of
the fiscal period results

Cash distributions

Release of Business Report

This document contains a translation of selected information described in the Financial Statements and Performance Information Report
prepared pursuant to the Investment Trust Law of Japan and the Financial Instruments and Exchange Law, for the period from July 1,
2011 to December 31, 2011 of Japan Prime Realty Investment Corporation (JPR). This English language document was prepared solely
for the convenience of and reference by non-Japanese investors and is not intended to constitute a disclosure document. The Japanese
language Financial Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely identicalconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if
there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English documents,
the original Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.,
nor any of their respective directors, officers, employees, partners, unitholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of English translations or the selection of portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than contained in this document
in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon
as having been authorized by JPR, Tokyo Realty Investment Management, Inc., or any of their respective directors, officers, employees,
partners, unitholders, agents or affiliates. The financial statements of JPR have been prepared in accordance with generally accepted
accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions. Many provisions of this document contain information that constitute forward-looking statements. These
forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may differ
materially from those in the forward-looking statements as a result of various factors.

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

Twentieth Fiscal Period Business Report

July 1, 2011 - December 31, 2011
Japan Prime Realty Investment Corporation