26 th
JAPAN PRIME REALTY INVESTMENT CORPORATION
Presentation Material
for the 26th Fiscal Period Ended December 2014
February 19, 2015

(Asset Manager)
Tokyo Realty Investment Management, Inc.

Table of Contents

Explanations and definitions of terms used in this material

Table of Contents

1.

1. Characteristics of JPR

2p2.

2. Operating Results and Forecasts of Financial Results

4p3.

3. Management Status and Strategies

14p

3-1.

15p

Internal Growth

3-2.

External Growth

19p

3-3.

Financial Operation and Others

21p

3-4.

Medium-Term Target

25p

4. Appendix

26p

4.

1.

This material contains information that constitutes forward-looking statements. Such forward-looking statements
are made by Japan Prime Realty Investment Corporation and Tokyo Realty Investment Management, Inc. basedon information currently available, and are therefore not guarantees of future performance. Actual results may
differ materially from those in the forward-looking statements as a result of various factors including known or
unknown risks and uncertainties.
This material is solely for the purpose of providing information and it is not intended for the purpose of offering or
soliciting investment, or as a recommendation to purchase or sell any specific product. Please refer any inquiries
for possible purchases of units or other products of Japan Prime Realty Investment Corporation to a securities
dealer.
Although Japan Prime Realty Investment Corporation takes all possible measures to ensure the accuracy of thecontent provided in this material (including references to legislation and taxation), it makes no guarantee as tothe accuracy of the content. Furthermore, the content may be subject to change without prior notification.
Please further note that this English material is a provisional translation of the original Japanese material.

Occupancy rate (concluded contracts)

Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded contracts.

Occupancy rate (generated rents)

Total leased space excluding leased space subject to rent-free periods / total leasable space

Average occupancy rate

Average figure of the occupancy rates at the end of each month of the fiscal period (period average ofoccupancy rates at end of months)

5.

Average unit rent

6.

NOI yield

7.

8.
9.

Disclaimer

Acquisition price

The sales price indicated in the purchase agreement for the relevant property executed with the seller,
exclusive of expenses related to acquisition, consumption tax and other expenses.

Monthly rent per tsubo of occupied spaces including common charges(Rent revenue - real estate – expenses related to rent business + depreciation) / acquisition priceNOI yield after depreciation(Rent revenue - real estate – expenses related to rent business) / acquisition priceThe rent revenue - real estate, expenses related to rent business and depreciation in the formula above arecalculated and annualized by dividing their respective actual values by the number of operating days for the
relevant fiscal period and then multiplying them by 365 days. In addition, the “assumed NOI yield uponacquisition” and the “assumed Cap rate after depreciation upon acquisition” are calculated based on assumed
income and expenditures for the 12 months that take into account such factors as tenant replacements andrental fluctuations occurring in the ten years after the acquisition of the property.

Ratio of long-term, fixed interest rate debts

Long-term interest-bearing debts with fixed interest / interest-bearing debts

Average maturity

Average maturity is a weighted average of the remaining period to maturity of interest-bearing debts,
calculated in accordance with the balance of respective interest-bearing debts.

10. Average interest-bearing debt costs(Interest expenses + borrowing-related expenses + interest expenses for investment corporation bonds +investment corporation bond issuance costs) / balance of interest-bearing debt through the fiscal period

11. LTV (based on unitholders’ capital)

Interest-bearing debts / (interest-bearing debts + unitholders’ capital)

12. LTV (based on gains or losses from valuation at end of period)
Interest-bearing debts / (total assets at end of period + gains or losses from real estate
valuation)
13. NAV per unit

(Unitholders’ capital + reserve for reduction entry, etc. + unrealized gains or losses) / number of units
outstanding

14. FFO per unit
(Net income (excluding gains or losses on sale of real estate and extraordinary income or loss) + depreciation)/ number of units outstanding

2.

The photos used in this material include those of the assets other than what JPR owns or plans to acquire. Please
note that for land with leasehold interest, JPR owns only the land.

15. Ratio of unrealized gains or losses(Appraisal value – book value) / book value

3.

Unless otherwise noted, the figures indicated in the body texts of this material are rounded down to the nearest
specified unit for monetary amounts space areas, and rounded off to the nearest specified unit for percentages,
numbers of years and average values. Accordingly, the sum totals of monetary amounts or percentages ofrespective items may not match the sum totals of actual figures.

16. Cap rate

Capitalization rate by the direct capitalization method is indicated. Direct capitalization method is one of themethods to calculate the value estimated by income approach (a method to estimate the value of the target
property by calculating the sum total of present value of the net operating income which the target property is
expected to generate in the future), and capitalizes the net operating income of a certain period by using thecapitalization rate.

11. Characteristics of JPR

2

1. Characteristics of JPR

Large Scale REIT Focused on Office Properties in Tokyo

JPR exerts benefits of its portfolio management through focused investment in office properties in Tokyo as well as
diversified investment in urban retail properties and office properties in regional cities, and aims to enhance the investment
value of unitholders by realizing a stable growth of cash distributions and an increase in net asset value (NAV)

Large- scale portfolio with
office and retail properties Portfolio size

Conservative financial base405.5 billion

46.4(based on gains or losses from valuation at end of period) Target Tokyo office ratio by area andassets

83% Other Cities
Office 77% Retail Ratio of long-term, fixed interest rate

17%

debts

23%

 High diversification of tenants
Ratio of tenants occupying at least 1%each 5 sponsors comprising of real estate,
construction and finance LTV%
Keep LTV at below 50%

62 properties
Tokyo

Sponsor support

98.2%

 Credit Rating

74% (office only）

 Acquisitions from sponsors’
311.6billion
pipelines

AA- （R&I）(71% of accumulated value of investments
to date )Investment Unit Information
Securities code
Stock priceDistribution per unit
NAV per unit

8955
425,000 yen
6,351 yen
230,437 yen

Total number ofinvestment units
outstanding
Market capitalization
Distribution yield
NAV multiple

Status of Unitholders(Percentages by number of investment units owned as of the end of December 2014)

825,000 units
350.6 billion yen

Foreign Investors
25%

3.0%
1.8 times

Individuals
5%

Number ofunitholders

Financial Institutions
60%

11,836(Note 1) Figures for the investment unit price and market capitalization are based on the price as of December 25, 2014 (trading day
immediately before ex-dividend date).
(Note 2) Figures for the DPU and NAV per unit are based on the operating results for the 26th Period ended December 2014.
(Note 3) Figures for the distribution yield and NAV multiple are calculated on the basis of the above assumptions.

Domestic Companies, etc.
10%3

2. Operating Results andForecasts of Financial Results42. Operating Results andForecasts of Financial Results

Financial Highlights for the 26th Fiscal Period Ended December 2014 (1)Distribution per unit (DPU) came to JPY6,351 for the 26th fiscal period (up 3.3% period-on-period, up 2.8% from forecast)
DPU for the 27th fiscal period is forecast to be JPY6,360, steadily continuing to grow toward the medium-term target

Policies and Forecasts

Distribution
per unit

Internal
GrowthExternal
Growth• Achieve growth in stages toward the
medium-term target of JPY6,500[26th] 6,180 yen (up 0.5% period-on-period)

Results• Current period’s results significantly surpassed previous period’s results and forecast[Result] 6,351 yen（up 3.3% period-on-period, up 2.8% from forecast）[27th (forecast)] 6,360 yen（up 0.1% period-on-period）• Implement leasing with a focus on rent levels andpromote contract renewal with upward revision of rents
Average occupancy rate 96.8%
Rent revenue (from existing properties)[forecast]+52 million yen• With leasing progressing smoothly, rent revenue and average unit rent continued toincrease following the previous period
Average occupancy rate 97.2% (up 0.4% from forecast)Rent revenue (from existing properties) +93 million yen (up 40 million yen fromforecast)• Conduct value enhancement works in preparation for
future growth• Conducted value enhancement works, with repair and maintenance costs surpassing
the normal operation plan by over JPY100 million, to support leasing and contract
renewal with upward revision of rents as well as improve customer satisfaction• Continue vigorously selective investments• Additionally acquired sectional ownership of Shibadaimon Center Bldg. preferentially• Expand pipelines for additionally acquiring sponsors’
properties and co-owned properties preferentially• Discussed acquisition of co-owned properties based on the preferential negotiationrights, etc. for them
• Acquired preferential negotiation rights for closed bid projects

Financial, etc.

• Promote further extending maturity of debts andreduction of interest-bearing debt cost
• Clean unrealized losses (JPY 10 billion)• Lower LTV (25th period: 47.3% based on gains orlosses from valuation)• Implemented refinance into long-term debts including 12-year investment
corporation bonds and 10-year long-term loans payable
New Financing resulted in 13 billion yen, average agreed period 8.7 years andaverage financing interest rate 0.87%• Unrealized losses JPY 2 yen (－JPY 8 billion)、LTV 46.4% (down 1.0% period-onperiod)52. Operating Results andForecasts of Financial Results

Item

Financial Highlights for the 26th Fiscal Period Ended December 2014 (2)Previous period

26th period (forecasts)

26th period (results)(Jun. 30, 2014)(25th period)(Dec. 31, 2014)(26th period)(Dec. 31, 2014)(26th period)

ChangeChange(25th period) (26th forcast)

27th Period(forecast)

Change(26th period)(Jun. 30, 2014)(27th period)

Operating revenue

13,734 mn

13,879 mn

13,902 mn

1.2%

0.2%

13,871 mn

-0.2%

NOI

8,968 mn

8,908 mn

9,010 mn

0.5%

1.1%

8,977 mn

-0.4%

Net income

5,072 mn

5,098 mn

5,238 mn

3.3%

2.7%

5,247 mn

0.2%

Distribution per unit

6,150 yen

6,180 yen

6,351 yen

3.3%

2.8%

6,360 yen

0.1%

Total number of units
outstanding

825,000 units

825,000 units

825,000 units－%－%

825,000 units－%

Properties owned at end of
period62 properties

62 properties

62 properties－%－%

62 properties－%

Total acquisition price404,720 mn

405,520 mn

405,520 mn

0.2%

－%

405,520 mn－%

Appraisal value

379,917 mn－

387,697 mn

2.0%

－

－

－

NOI yield (before depreciation)

4.5%

4.4%

4.4%

-0.1pt

－ pt

4.5%

0.1pt

NOI yield (after depreciation)

3.6%

3.5%

3.5%

-0.1pt

－ pt

3.6%

0.1pt

Period-end occupancy rate

97.8%

96.1%

97.0%

-0.8pt

0.9pt

97.4%

0.4pt

Average occupancy rate

97.0%

96.8%

97.2%

0.2pt

0.4pt

97.5%

0.3pt

14.1 thousand yen

14.1 thousand yen

14.1 thousand yen

0.3%

0.4%

14.2 thousand yen

0.5%

1.44%

1.27%

1.27%

-0.17pt

－ pt

1.24%

-0.03pt

47.3%

－

46.4%

-1.0pt－－－220,672 yen－

230,437 yen

4.4%

－

－

－

Average unit rent per tsubo
Average interest rate ofinterest-bearing debts
LTV (based on gains or losses
from valuation)
NAV per unit

(Note 1) The forecast for the current (26th) fiscal period was made upon the announcement of financial results of the previous fiscal period.
(Note 2) Figures for total number of units outstanding, properties as owned at end of period, total acquisition price, appraisal value, periodend occupancy rate, average unit rent per tsubo, LTV and NAV per unit are as of the end of each fiscal period.

62. Operating Results andForecasts of Financial Results

Change in Distribution per Unit

Steadily built a track record of DPU surpassing forecasts, with the real EPS reaching the highest level since the 18th period
ended December 2010
After undergoing the situation in which earnings were complemented by acquiring new properties, JPR transferred to astage for pursuing growth by recovery of rents from existing properties

 Change in Distribution per Unit
(Yen／unit)

Forecast

Actual result

6,500

6,400

Increase due toinclusion of property
taxes for properties
acquired in 21st period
as cost of acquisition

6,351

6,430

6,360

6,150
6,093

6,000

6,031

6,000

6,006

6,180

6,050

5,876
5,800

5,800

23rd Period

24th Period

5,750
5,700

5,680
5,600 5,611

5,500
0

18th Period

19th Period

20th Period

21st Period(Note) The forecast were made upon the announcement of financial results of the previous fiscal period.

22nd Period

25th Period

26th Period

27th Period72. Operating Results andForecasts of Financial Results

Factors of Period Changes in DPU

Rent revenue significantly surpassed the forecast for the 26th period, and is expected to show a period-on-period increase
for three consecutive periods since the 25th period through the 27th period

 Factors of Period-on-Period Changes in DPU
25th(Actual Result)

26th (Jul. 1, 2014～Dec. 31, 2014)(Actual Result)

27th (Jan. 1, 2015～Jun. 30, 2015)(Forecast)

28th(Forecast)(yen/unit)

6,351

+23

+42

6,360

-94
+98

+66

+138

-129

-43

+42

-41

+6

+12

+113

Rent revenue from existing properties

Other rental revenue from existing properties

Expense related to rent business and other operating expenses from existing properties

6,150

Rental income from newly acquired properties

Non-operating income and expenses and extraordinary income and expenses

 Changes in Major Factors of Period-on-Period Fluctuations
Rent revenue from existing properties
Expected to increase for three consecutive periods
25th（Yen/unit）

26th

27th

(Forecast)

28th(Forecast)

Repair and maintenanceInterest expenses, etc.

Gradually decrease to the level of the normal plans
25th（Yen/unit）

26th

27th

(Forecast)

28th(Forecast)

Reduce financing costs through refinances
25th（Yen/unit）

26th

27th

(Forecast)

+61

+42
+113
+36

-41

-138

+50

(Not disclosed)

+181

+92
-0

28th

(Forecast)+103(Note) The factors of period-on-period fluctuations show the amounts obtained by dividing the period-on-period fluctuation amounts of respective periods by the number of investment units outstanding at period end.

8

2. Operating Results andForecasts of Financial Results

Statement of Income and Retained Earnings
for the 26th Fiscal Period Ended December 2014
（JPY mn）

Item

Rental revenue
Other rental revenue

25th Period

26th Period(Jan.1, 2014-Jun.30, 2014)(Jul.1, 2014-Dec.31, 2014)

AmountAmount12,931

13,043

Breakdown of increase/decrease in income (JPY mn)

Changes

Increase Decrease

Amount112

External growth (properties acquired in 26th and 25th periods)+12 yen

10

802

859

56

Increase in NOI of properties acquired in 26th period

13,734
13,734
1,990

13,902
13,902
1,985

168
168
-5

Increase in depreciation related to the above properties

2,774
524
860

2,907
529
983

132
4
122

Repairs and maintenance

27
444

27
445

0
0

Property management fee

227

231

4

Decrease in others

12

562
128
1,834

556
134
1,841

-6
5
6

（Expenses） Increase in utilities expenses (seasonal factor, etc.)

120
3Asset management fees

6,599
478

6,733
485

134
7

Other operating expenses
Operating expenses
Operating income
Profits(a-b)

230
7,308
6,425
7,134

206
7,425
6,477
7,169

-24
116
51
34

Net operating income (NOI)
Non-operating income

8,968
47

9,010
11

41
-35

Interest expenses

1,259

1,142

-116

Other non-operating expenses

Non-operating expenses
Ordinary income

140
1,399
5,073

107
1,250
5,239

-32
-149
165

Income before income taxes
Net income

5,073
5,072

5,239
5,238

165
165

Unappropriated retained earnings

5,094

5,259

164

Rental revenue - real estate (a)Operating revenue
Property and other taxes
Other expense related businessOutsourcing expense
Utilities expense
Casualty insuranceManagement association accounts

OthersDepreciation
Expenses related rent business (b)Total number of units outstanding at end of period

Distributions per units (DPU)

825,000 units 825,000 units
6,150 yen

6,351 yen

Conversion
to DPU

14
3

Internal growth (continuously owned properties)

41

Increase in NOI（Revenues） Increase in rent revenue

27
93

Increase in incidental income (seasonal factor, etc.)

Increase in depreciation
17

113（Revenues） Decrease in settlement of management association accounts（Expenses）

Decrease in interest expenses
Decrease in finance cost
Increase in other non-operating expenses(Note)

Rent revenue from existing
properties increased
significantly

818

Decrease in income equivalent to expenses forrestoration to original condition

Financial costs and other non-operating income and expenses+49 yen93

Decrease in cancellation penalty, etc.

Decrease in asset management fees and administration service fees

Additional acquisition of
Shibadaimon Center Bldg.
contributed (additional revenue
for approximately 5 months)

116
34+137 yen35

The item is recorded only infiscal periods ending June each
year
Reduction as a result of
refinancing

1

With regard to DPU for the 25th fiscal period ended June 2014 and the 26th fiscal period ended December 2014,
JPR added part of the retained earnings brought forward that had been internally reserved through the preceding
fiscal period to the cash distributions and delivered the amount arrived at when the number of investment units
outstanding is multiplied by an integer as profit distributions, with the aim of having the profit distributions
deducted as expenses based on application of the special provision on taxation of investment corporations (Article
67-15 of the Act on Special Measures Concerning Taxation) and in order to minimize the burden to unitholders
incurred by accrual of corporate income tax, etc.

- units
201 yen92. Operating Results andForecasts of Financial Results

Comparison with Forecasts of Financial Results
for the 26th Fiscal Period Ended December 2014
（JPY mn）

Item

Rental revenue

26th Period

26th Period(Forecast)(Result)

ChangesAmountAmountAmountBreakdown of increase/decrease in income (JPY mn)
Increase Decrease

13,003

13,043

40

876

859

-17

Increase in NOI of properties acquired in 26th period

13,87913,902

23

Increase in depreciation related to the above properties

Property and other taxes

13,8791,985

13,902
1,985

23
0

Other expense related business

2,986

2,907

-78

Outsourcing expense

545

529

-16

Utilities expense
Casualty insurance

1,057
27

983
27

-74
0

Repairs and maintenance

441

445

3

Property management fee

228

231

3

Decrease in utilities expenses (seasonal factor, etc.)

Management association accounts

556

0
6

Increase in brokerage fee

Other rental revenue
Rental revenue - real estate (a)Operating revenue

Others

127

556
134

Depreciation

1,846

1,841

-5
-84

External growth (properties acquired in 26th and 25th periods)

Internal growth (continuously owned properties)

Increase in NOI（Revenues）Increase in rent revenue

16

6,733

480

485

4

Other operating expenses

231

206

-25

（Revenues）Increase in Casualty insurance

Operating expenses
Operating income

7,530
6,348

7,425
6,477

-105
128

（Expenses）Decrease in interest expenses, etc.

Profits(a-b)

7,061

7,169

108

Net operating income (NOI)

8,908

9,010

102

6

11

5

1,147

1,142

-5

Interest expenses

107

107

0

Non-operating expenses

1,255

1,250

-5

Ordinary income

5,099

5,239

139

Income before income taxes

5,099

5,239

139

Net income

5,098

5,238

139

Unappropriated retained earnings

5,120

5,259

139

Other non-operating expenses

Total number of units outstanding at end of period

Distributions per units (DPU)

825,000 units 825,000 units
6,180 yen

6,351 yen

- units

Financial costs and other non-operating income and expenses+155 yen

40（Expenses）Decrease in Outsourcing expense

6,818

Non-operating income

128
101

15

Asset management fees

Expenses related rent business (b)0Increase in others

DeIncrease in depreciation+0 yen00Decrease in incidental income (seasonal factor, etc.)

Decrease in asset management fees and administration service fees

Conversion
to DPU

33

74
11

Caused mainly by the steadyprogress in inviting new tenants
and contract renewal with upwardrevision of rents

Costs reduced by promoting
energy saving measures

5
20
11

+13 yen55Assumption for the 26th Fiscal Period Forecast (Jul. 1, 2014-Dec. 30, 2014)• Investment properties owned： Total 62 properties (including Shibadaimon Center Building(additional ownership) acquired in July 2014)• Average occupancy rate：
96.8％ （confirmed contracts）• Number of units：
825,000 units• LTV (based on unitholders’ capital) ： 49.9％ （26th period (Dec. 2014))

171 yen(Note) The forecast for the current (26th) fiscal period was made upon the announcement of financial results of the previous fiscal period.

10

2. Operating Results andForecasts of Financial Results

Forecasts of Financial Results
for the 27th Fiscal Period Ending June 2015
（JPY mn）

Item

Rental revenue
Other rental revenue

26th Period(result)

27th Period(forecast)

ChangesAmountAmountAmountBreakdown of increase/decrease in income (JPY mn)
Increase Decrease

13,043859

13,089781

45-77

13,902

13,871-31

13,902

13,871-31

Other expense related business

1,985
2,907

2,048
2,844

63
-62

Outsourcing expense
Utilities expense
Casualty insurance

529
983
27

529
936
27

0
-47
0

Repairs and maintenance

445

404

-40

Decrease in others

Property management fee

231
556

232
577

0
21

（Expenses）Decrease in utilities expenses (seasonal factor, etc.)

134

137

3

Decrease in repairs and maintenance

1,841

1,844

3

Increase in property management fee

Expenses related rent business (b)

6,733

6,737

4

Asset management fees
Other operating expenses

485
206

486
242

0
36

Operating expenses

7,425

7,466

41

Operating income

6,477

6,404

-72

Profits(a-b)
Net operating income (NOI)
Non-operating income

7,169
9,010
11
1,142

7,133
8,977
43

-36
-32
31

1,091
107

-51
0

5,239
5,239

1,199
5,248
5,248

-50
9
9

5,238
5,259

5,247
5,268

9
8

825,000 units 825,000 units
6,351 yen
6,360 yen

- units
9 yen

Rental revenue - real estate (a)Operating revenue
Property and other taxes

Management association accounts

OthersDepreciation

Interest expenses
Other non-operating expenses

Non-operating expenses
Ordinary income
Income before income taxes
Net income
Unappropriated retained earnings
Total number of units outstanding at end of period

Distributions per units (DPU)

107
1,250

External growth (properties acquired in 27th and 26th periods)

Increase in NOIConversion
to DPU+6 yen550Increase in depreciation related to the above properties

Internal growth (continuously owned properties)

Increase in NOI（Revenues）Increase in rent revenue

34

Decrease in incidental income (seasonal factor, etc.)

Increase in cancellation penalty, etc.

7838

-95 yenContribution for approximately 1
month

Rent revenue from existing
properties will continue toincrease following the 26th period

86
13
48

Increase in property and other taxes

4
Since the 26th period, valueenhancement works that had
been implemented ahead ofschedule are gradually being
reduced to the level of the normal
operation plans

60

41
21

Increase in others
Increase in depreciation

2
3
36

Increase in asset management fees and administration service fees

Financial costs and other non-operating income and expenses（Revenues）Increase in settlement of management association accounts, etc.
（Expenses）Decrease in interest expenses

81
31
50

+99 yen

The item is recorded only in fiscal
periods ending June each year
Reduction as a result of
refinancing

Assumption for the 27th Fiscal Period Forecast (Jan. 1, 2015-Jun 30, 2015)• Investment properties owned：• Average occupancy rate：• Number of units：• LTV (based on unitholders’ capital)：

Total 62 properties (26th period (Dec. 2014))
97.5％ (confirmed contracts)
825,000units
49.8％ (27th period (Jun. 2015))11

2. Operating Results andForecasts of Financial Results(Reference)

Forecasts of Rent Revenue-Real Estate and Expenses Related to Rent Businessfor the 28th Fiscal Ending December 2015
（JPY mn）

Item
Rental revenue

27th Period

28th Period(forecast)(forecast)AmountAmountBreakdown of increase/decrease in income (JPY mn)

Changes

Increase Decrease

Amount－ yen

13,08913,055

-34

781

816

34

Increase in NOI of properties acquired in 27th and 28th periods

13,871

13,8710

Increase in depreciation related to the above properties

Property and other taxes

2,048

2,042

-5

Other expense related business

2,844

2,823

-21

Outsourcing expense

529

531

2

Utilities expense

936

989

52

Casualty insurance

27

27

0

Repairs and maintenance

404

328

-76

Decrease in others

30

Property management fee

232

222

-9

（Expenses） Increase in utilities expenses (seasonal factor, etc.)

52

Management association accounts

577

575

-2

Decrease in repairs and maintenance76

Others

137

148

10

Decrease in property management fee

9Depreciation

1,844

1,864

20

Increase in advertising expense

Expenses related rent business (b)

6,737

6,729

-7

Decrease in others

Profits （a-b）

7,133

7,141

8

Net operating income （NOI）

8,977

9,005

28

Capital expenditure

856

1,089

232

Net cash flow (NCF)

8,121

7,916

-204

Other rental revenue
Operating revenue (a)Conversion
to DPU

External growth (properties acquired in 28th and 27th periods)

Internal growth (continuously owned properties)

Increase in NOI（Revenues）

28

Decrease in rent revenue
Increase in incidental income (seasonal factor, etc.)

Increase in depreciation+9 yen834

Decrease due to contract
cancellations by tenants at
multiple properties

65

Reduced to the level of normal
operation plans, following the27th period

14
9
20

Assumption for the 28th Fiscal Period Forecast (Jul. 1, 2015-Dec. 31, 2015)• Investment properties owned： Total 62 properties (26th period (Dec. 2014))• Average occupancy rate：

96.9％ （assuming some new contract, etc. in addition to theassumptions for the 27th fiscal period）

12

2. Operating Results andForecasts of Financial Results

Balance Sheet for the 26th Fiscal Period Ended December 2014
（JPY mn）

Item

25th Period

26th Period(As of Jun. 2014)(As of Dec. 31, 2014)

Amount%AmountChange%Amount5.7%

23,786

5.7%

Cash and deposits

11,557

2.8%

12,117

2.9%

559

4.8%

End of 25th Period

End of 26th Period

Cash and deposits in trust

11,517

2.8%

11,227

2.7%

-290

-2.5%

Cash and deposits

23,07523,344+268

10,633

10,500-132

Other current assets

1.0%

Cash and deposits status

23,562Current assets

224%（JPY mn）

486

0.1%

442

0.1%

-44

-9.1%

Tenant leasehold and security deposits

Noncurrent assets

390,35494.3%

390,070

94.2%

-283

-0.1%

(Note) Amount equivalent to leasehold deposits released from tenants (9,500 million yen at end

Tangible assets

385,205

93.0%

384,928

93.0%

-276

-0.1%

Intangible assets

4,797

1.2%

4,797

1.2%

-0

-0.0%

Noncurrent assets（JPY mn）

350

0.1%

345

0.1%

-5

-1.6%

Property acquisition+822

Lease and guarantee deposits

53

0.0%

96

0.0%

42

78.3%

Capital expenditure+706

Others

296

0.1%

248

0.1%

-48

-16.2%

Depreciation-1,841

188

0.0%

233

0.1%

45

24.2%

Other

+28

Total

-283

Investments and other assets

Deferred assets

188

0.0%

233

0.1%

45

24.2%

Total assets

414,104

100.0%

414,091

100.0%-13-0.0%

Current liabilities

Investment corporation bond issuance costsof 25th period and 9,500 million yen at end of 26th period) are excluded.

37,9009.2%

38,420

9.3%

520

1.4%

Interest-bearing debt status

Short-term loans payable

2,000

0.5%

－

－

-2,000-100.0%

Increase

Decrease

Current portion of long-term loan payable

6,332

1.5%

19,732

4.8%

13,400211.6%

Short-term loans payable

5,000

7,000

-2,00024,0005.8%

13,0003.1%-11,000-45.8%

Long-term loans payable

4,000

166

+3,834

5,568

1.3%

5,688

1.4%

120

2.2%

Investment corporation bonds

9,000

11,000-2,000-0.4%

Current portion of investment corporation bonds

Other current liabilities
Noncurrent liabilities

178,99143.2%

178,292

43.1%

-698

Long-term loans payable

126,358

30.5%

116,792

28.2%-9,566-7.6%

Investment corporation bonds

32,5007.8%

41,500

10.0%

9,000

27.7%

20,1334.9%

20,000

4.8%

-132

-0.7%

Total liabilities

216,89152.4%

216,713

52.3%

-178

-0.1%

Unitholders' capital

192,04446.4%

192,044

46.4%

－

－
3.2%

Tenant leasehold and security deposits

Surplus

5,168

1.2%

5,333

1.3%

164

Total net assets

197,21347.6%

197,378

47.7%

164

0.1%

Total liabilities and net assets

414,104

100.0%

414,091

100.0%-13-0.0%

Change（JPY mn）

Change13

3. Management Status
and Strategies

14

Occupancy Status

3-1. Internal GrowthWith tenant replacement under way, occupancy rate stayed at the 97% level Changes in Move-In and Move-Out Spaces
Move - ins (left axis)(㎡)

20,00010,0000-10,000

Rate of move-in (right axis)
2.7

6,617

-13,940

10,417-7,856

15,898-6,60822nd

Rate of move-out (right axis)

9,994-12,051

2.6

1.8
11,598-5,51224th

25th

 Changes in Occupancy Rates of Properties
Portfolio
(%)

100

99.8

Office properties
99.8

96.9

98
96

99.8

94.1

99.7

96.5

94.9

94

4,339

-11,603-12,141

26th

-2.7
26th

99.6

99.6

99.4

97.8

97.0

+0.9pt
96.1

92
90
0
88

92.2
90.7
21st

22nd

23rd

24th

25th

Move-outs-2,008㎡

2

26th

26th

94.4

90.0%
Move-ins
1,222.㎡

Changes－10.0pt
Change of
space
－785㎡

• Occupancy rate was expected to drop to 75% due tocancellations by multiple tenants, but recovered to
90% as leasing proceeded smoothly

1• Leasing strategy focusing on rent levels proved
effective

0-1

25th occupancy 26th occupancy

100.0%

4

Olinas Tower

25th occupancy 26th occupancy

94.2%
Move-outs

-3

95.6%
Move-ins

Changes+1.4ptChanges of
space-1,757㎡
2,102㎡+344㎡• Invited succeeding tenant without any downtime after cancellation by a large tenant• Expected to achieve full occupancy by
February 2015

-4

JPR Hakata Bldg.

25th occupancy 26th occupancy

85.3%
Move-outs
-76㎡

96.7%
Move-ins
825㎡

Changes+11.4pt
Changes of
space
+749㎡

• Occupancy rate temporarily dropped to 67% due tocancellation by a large tenant• Received applications widely for large sections as well
as divided sections, and significantly regained
occupancy rate while shifting to a multi-tenant leaseformat95.6+1.2pt94.8

Kanematsu Bldg.

-2

Forecast

96.9
95.4

8,224

1.0

ResultRetail properties(%)

3+3,885

-2.6

-2.7
23rd

Forecast

Result

-1.2

-1.6

-3.4
21st

Move - outs (left axis)

2.2

1.6

-1.9
-20,000

3.8

 Major State of Leasing

Major topics• Office properties in central Tokyo showed somewhat lower
occupancy rate due to the impact of tenant replacement, but
down time tends to decrease as tenant demand for large
sections remain strong• Having few cancellations, office properties in Greater Tokyo andOther Cities remain occupied at a high level• Retail properties maintain stable occupancy, with contract
renewals proceeding smoothly

15

Status of Rent

3-1. Internal Growth

Increase in new rents and contract renewal with upward revision of rents showed steady progress, with the average unit
rent rising sloghtly for two consecutive periods

 Status of New Contract Unit Rent

 Changes in Average Unit Rent
Rate of Variation from the End of Preceding Period (Based on Existing Properties)

+3

(%)

Portfolio(Ratio of monthly rent by rate of difference between contracted rents andmarket rents for new contracts in the 26th Period ended December 2014)

Office properties

Less than 0%

7.0%

+2

±0%(inside range)
+0.4

+1
+0

-0.7
-1.1

+0.3

4.4%

-3.1
-3
-4

57.0%

 State of Monthly Rent with Upward Revision

Ratio of monthly rent revision amounts in contract renewal with upwardrevision of rents for the 26th period ended December 2014

-5
21st

22nd

23rd

24th

25th

26th

Changes in Average Unit Rent

+0～5%

(Average unit rent (including common service fee): thousand yen/tsubo)

21stPortfolio (average)
Portfolio(existing properties)
Office properties(existing properties)(Note)

9.9%

Ratio of monthly rent of new contracts
exceeding the market range:(Note) Market rents refer to the range from the highest to the lowest of the contract rents in the market of the properties owned by JPR (forstandard floors), evaluated by CBRE K.K. at each appraisal date. The indicated ratios of monthly rent are based on the rates ofdiversion from the highest for “+0” through “Over +10%” and from the lowest for “Less than 0%.” The “±0%” indicates that therents are within the range from the highest to the lowest.

-1.3

-1.4

42.7%

Over +0～5% Over +5～10%

-1.5

-1
-2

+0.3

+0.3

Over +10%36.0%

Major properties with increased new rents
Kanematsu Bldg.
Tokyo Tatemono Kyobashi Bldg.
Shinjuku Center Bldg.
JPR Jingumae 432
Olinas Tower

22nd

23rd

24th

25th

1.7%

+5～10%

26th

14.5

14.3

14.1

14.1

14.1

14.1

14.5

14.4

14.2

14.0

14.1

14.1

17.8

17.5

17.0

16.8

16.8

16.9

Existing properties refer to properties that JPR held throughout each fiscal period between the 21st period ended June2012 and the 26th period ended December 2014. The above table shows the average unit rent at end of each period forthese properties, and the above graph shows the rate of variation of the average unit rent from the end of eachpreceding period.

23.9%

Over +15%

20.9%+10～15%53.5%(Note)

Major properties with continuously increased rent
Shinjuku Square Tower
JPR Harajuku Building
Rokubancho Building
Kawaguchi Center Bldg.
Tenjin 121 Bldg.

Ratio of rents with rate of upward revision at
more than 10%

74.4%

The figures represent the ratio of the monthly rent revision amounts based on the rate of each revision in the renewed contracts withupward revision of rents in the 26th fiscal period ended December 2014.

16

Outlook of Rent Revenue

3-1. Internal Growth

While tenant relocations will impact performance intensively in the 28th period, JPR will endeavor to raise new rents
through tenant replacement
 Forecast of Occupancy Rate and Rental Revenue
26th Period(result)

 Prospects of Properties Subject to Leasing Strengthening

27th Period(forecast)Occupancy Rate

28th Period(forecast)

Property

Change in Occupancy Rate
Occupancy rate (concluded contracts)
Occupancy rate (generated rents)

(%)

97.8

----- Average 97.2 -----

97.0 ----- Average 97.5 -----

96.2

97.4
96.1

97.1
----- Average 96.9 -----

95.5

95.8

+370

+293

+0

12,931+18+386

Change

28th

90.0

+10.0

100.0

-10.0

90.0

Kanematsu Bldg. Annex

100.0

+0.0

100.0

-100.00.0

MS Shibaura Bldg.

72.9

+6.8

79.7

+20.3

100.0

Gotanda First Bldg.

100.0

+0.0

100.0

-71.9

28.1

JPR Sendagaya Bldg.

100.0

-13.2

86.8

+13.2

100.0

Average (5 properties)

86.6

+2.8

89.3

-6.8

82.5

(Full-Period Addition When Occupancy Rate Increases to 97%)

150

100

0
+10

13,089Assumed contributions for the 28th period
Full-period addition when occupancy rate increases to 97%

50

-491

-290
+1

13,04327th

Contributions to Earnings When Vacancies Are Leased Up

Decrease primarily
due to concentrated
impact of tenantchanges for the 5properties shown on
the right

+70

+30

-312

ChangeKanematsu Bldg.

(million yen)

Increase in move-ins
Increase in rent revisions
Decrease in move-outs
Increase and decrease in others
Increase in newly acquired properties

+35

26th

(Reference) Total floor area for advertised lease of the above 5 properties: 15,108m2

Change in Rental Revenue and Breakdown of Factors of Change(million yen)（％・pt）-+0

13,055(Note 1) Rent revenue includes land rent, parking lot revenues and advertisement charges as well as rents and common charges.
(Note 2) The occupancy rate and rent revenue for the 27th fiscal period ending June 2015 are calculated based on contracts confirmed at the
moment (including new contracts already concluded and notification of cancellation received). The occupancy rate and rent revenue forthe 28th fiscal period ending December 2015 are calculated based on the same preconditions for the 27th fiscal period as well as on someassumed expectations.

Kanematsu

Kanematsu Annex

ＭＳ Shibaura

Total of the red sections in the above graph:assumed contribution amount to rent revenue for theforecast results of the 28th period

Total of the gray section in the above graph:
Addition to assumed full-period contribution amountwhen the occupancy rate increases to 97% (including
extinction of rent-free periods) over the above
contribution amount

Gotanda FirstJPR Sendagaya＝ +160 million yen/ period＝ +301 million yen/ period

17Initiatives for Rental Growth3-1. Internal Growth

Reinforce initiatives for rental growth based on the favorable tenant relations fostered through improved customer
satisfaction (CS)

 Initiatives to Improve Customer Satisfaction (CS)  Initiatives to Revise Rents
Inspection Flow Chart for Improving Quality of Management Operations
Inspection

Asset tenant services andmanagement levels

Changes in Rent Policies

Set “target rent” and “base rent” for each fiscal period and each property, and raise them in accordancewith the increase in market rent
Target rent

Base rent

CS Survey

Grasp tenant needs

Improvement ofmanagement issues

+12.5

+10.9
+7.7

Brand Study Session

Improve courtesy and quality of work
Enhance amenities and take safety anddisaster countermeasures
Plan and implement renovations

Portfolio average rent(%)

Confirm issues by Asset Manager andAsset Engineering Manager based on
survey data and on-site surveys

+2.9
+1.5
+0.6
+0.2

Liaison meeting（Property Manager, Building Manager andpersons in charge of operations）

24th

Discuss countermeasures about
management issues

25th

+0.5
26th

+1.0
27th

Target rent
(market Lent＋α)
Goal: Target rent
Lower limit: Base rent
Negotiate rents targeting theupside zone

Base rent(≒Market rent)(Note) The rate of change in the graph to the left shows the rateof change in the rent policy (target rent and base rent)with the 24th fiscal period set as the base and in the
average rent of the portfolio. Furthermore, the target
rent was newly established in the 25th fiscal period

Changes in Revision Amount and Revision Rate of Rents, Etc. (Based on Monthly Rent)(thousands ofChange in CS Survey Result(points)

85
81.0
80

750

79.1

2005

81.8

82.3

83.2

83.7

84.6

85.9

87.0

Estimated upward revisions of rents
cover confirmed contracts only

10,000

2008

2009

0

82.4

2010

2011

2012

2013

(%)

+2

+1

+0
-0.2

2007

Rate of rent revision (right axis)+0.2

Survey period:
May – June 2014
Surveyed buildings: 41 buildings with 429 tenants
Questionnaire items :Management and administration, responses
to tenants, crime prevention and safety (security measures),emergency responses and environmental preservation

2006

Decrease (left axis)

20,000

Average value

90

Increase (left axis)

yen/month)2014-10,000-20,000

-0.3

-0.7

-1

-0.6
Assumed downward revision of rents
is calculated in a conservative manner

22th

23th

24th

25th

26th

27th
（Forecast）-2(Note) Revision rate of rents, etc. = total amount of revised monthly rents, etc. (including staged rents and common charges) of each fiscal period / totalmonthly rents (including common charges) of each preceding fiscal period.
In the amount of revised rent, etc. for the 27th period, of the revised land rent of The Otemachi Tower (Land with Leasehold Interest) is recorded only
for the CPI-linked portion excluding revisions to property taxes, etc.

18

Continue Policy of Vigorously Selective Investments

3-2. External Growth

Continue the policy of vigorously selective investments that focus on location, price and other factors as investment criteriaof JPR Acquired Target

 Investigation Status of Investment Projects

Tokyo office properties having
anticipated growth potential+

Properties in regional cities
featuring high stability ofearnings＝

Improvement of quality

Urban retail properties that cansecure cap yield afterdepreciation

Change in Number of Cases with Property Information
Obtained and Investigated by TRIM
22nd

23rd

24th

25th

26th

Number of cases withinformation obtained

71

116

131

108

119

84

Number of cases withinformation investigated

23

21

47

51

36

35

Enhance profitability and stability

State of 26th

Vigorously selective investments in properties that contribute toenhancing the quality and yields of the portfolio
 Acquisition Strategy by Taking Advantage ofDiversified Pipelines

Ratios of number of cases with information obtained (outerring) and number of cases with information investigated(inner ring)

Properties acquired
other than fromsponsors, etc.

129.3 billion

Properties acquired
based on information
obtained from thesponsors

Properties
acquired from thesponsors, etc.

221.4 billion

29.3%
50.2%
20.4%

90.1billion(Note) Sponsors, etc. represent the five sponsor
companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which thesponsors have made equity investment.

• Continuous exchange of information andinvestigation of joint investment andwarehousing arrangements, etc. with
Tokyo Tatemono• Strengthening of pipelines with Yasuda Real
Estate and Taisei Corporation, etc.

Original Network• Utilization of networks with operatingcompanies and investment managementcompanies• Participation even in bid projects after
vigorously selecting and investigating them
Additional Acquisition of Co-owned Properties,
etc. Preferentially• Co-owned properties occupying the
majority of the portfolio• Concluding negotiated transactions throughutilizing preferential negotiation rights

Office properties
in Tokyo

Retail properties

50%

30%
40%

Sponsor Pipeline

Property Acquisition Results by Channels（cases）

21st

Office properties
in other cities

40%(Reference) Major reasons for
suspending investigation

Others
14%
Price
21%

Location
65%

20%

20%

(Note) “Others” include such reasons asability to replace tenants, use
and abidance with laws.

• While transaction opportunities of blue-chip properties are limited,the asking price of sellers is soaring• Discussions with the sponsors are under way on multiple projects(ratio of number of cases with information obtained from sponsors
and investigated: 34%)
• Utilized the proprietary pipelines to elaborately find possibilities toacquire properties through one-on-one negotiations• Made discussions in an effort to acquire co-owned properties bytaking advantage of the preferential negotiation rights• Acquired preferential negotiation rights for closed bit projects bydemonstrating price competitiveness19

3-2. External Growth

Acquired Additional Ownership of Blue-chip Property in Central Tokyo:
Shibadaimon Center Building Acquisition Highlights

Status of Exclusively Owned Spaces• Realized a negotiated transaction by taking advantageof the support from the Yasuda Real Estate Group, oneof the sponsors• Acquired with NOI yield of 4.7%, which surpasses theportfolio average• Realized external growth by taking advantage of thepreferential negotiation rights

 Property Characteristics• The property exerts superiority in the area where there
are many small- and medium-sized office buildings• Offers good access to such wide-area traffic networks as
Haneda Airport and Shinagawa Station on the JR lines• Operates at full occupancy (as of the end of the 26th
Period), with some contracts renewed with upwardrevision of rents for spaces already owned by JPR

10F

Owned by other right holders

9F

Owned by other right holders

8F

Already owned by JPR

7F

Already owned by JPR

6F

Already owned by JPR

5F

Already owned by JPR

4F

Subject space of the additional ownership

3F
2F
1F

Owned by other right holders

Subject space of
the additional
ownership

Already owned by JPR

Owned by other rightholders

Already owned by JPR

B1F Owned by other right holders

Already owned
by JPR

Equity interest in the subject space ；12.6%（ JPR’s total equity interest rising to 65.4% after the acquisition）

Acquisition priceAppraisal value

NOI yield

Cap rate after
depreciation

800 million yen

846 million yen[Assumed on acquisition][Assumed on acquisition]

3-minute walk from Daimon Station on the Toei Subway
Asakusa Line and Oedo Line, 4-minute walk from Onarimon
Station on the Toei Subway Mita Line and 9-minute walk from
Hamamatsucho Station on the JR Yamanote Line and Keihin
Tohoku Line

Tokyo Prince
Hotel

Zojoji Temple

Shibadaimon Center Bldg.

Minato City
OfficeMinato City
OfficeTokyo
Mielparque Hall

World Trade
CenterBuilding

Kyushibarikyu
Onshi Garden

4.7%

4.1%

Assumed NOI yield upon acquisition and Cap rate after depreciation:
Calculated based on the assumed income and expenditures for the 12 months
that take into account such factors as tenant replacements and rental
fluctuations occurring in the ten years after the acquisition of the property; theaverage occupancy rate for the period is assumed to be 96% (for officesections).

Location

1-703-3 Shibadaimon, Minato-ku, Tokyo and
otherCompletion

July 1993

Total floor space

11,419.93 ㎡

Type ofownership（Additional ownership of 12.6% equity interest）

SellerIndividual

Acquisition dateJuly 30, 2014

Sectional Ownership20

3-3. Financial Operation andOthersAppraisal Values

With cap rates decreasing even further, the appraisal value increased for properties occupying over 80% of the portfolio

 Number of Properties with Changes in Appraisal Valueand Cap Rate Period-end Appraisals
End of 25th
PeriodJun. 30, 2014
No. of properties

End of 26th
PeriodDec. 31, 2014

62

Appraisal Value (by fiscal period)

Change62-

Appraisal value

379.9 billion yen

387.6 billion yen+7.7 billion yen

Book value

390.0 billion yen

389.7 billion yen-0.2 billion yen

Unrealized gains
or losses-10.0 billion yen-2.0 billion yen+8.0 billion yen(properties)

-2.6%

-0.5%

+2.1pt40

100Unrealized gains or losses (left axis)
Ratio of unrealized gains or losses (right axis)
+1.8

+0.4

+2.1

+2.5

14

12

25

20

12

9
2

25th

26th

10

3

0

3

2

Central Tokyo

3

0

Greater Tokyo

0

Other cities

-20

0
-2.5
24th

25th

26th

(properties)

Decrease

Unchanged

Increase

60
50

44

40

36

30
18

17

10

6
0

24th

25th

28

20

7

10

-250

Increase

30
20

-208

23rd

Unchanged

Cap Rate (at period end; by area)

56

50

-142

22nd

Decrease

60

+0.0

-217

(properties)

40

-100

21st

7

24th

Decrease

40

Cap Rate (by fiscal period)

(pt)

+0.3

-0.7

-226

10

Unchanged

50

30
12

Increase

60

43

38

(properties)(Note ) The figures represent the number of properties of which appraisal value increased, remained flat or decreased
after comparing it in each area at each point of time and as of the end of the 26th period.

+1.0

+0

Decrease30

 Changes in Unrealized Gains or Losses+250

Unchanged

51

50

20

Ratio of unrealized
gains or losses(JPY 100 million)

Increase

60

Appraisal Value (at period end; by area)

0
26th

0

15
2

0

Central Tokyo

13
2

0

Greater Tokyo

20

Other cities(Note ) The figures represent the number of properties of which cap rate decreased, remained flat or increased after
comparing it in each area at each point of time and as of the end of the 26th period.

21

3-3. Financial Operation andOthersConservative Financial Operations Continued

Conducted financial operations with ratio of interest-bearing debt (LTV) set at the target range of up to 50% as a rule
Keep high ratio of long-term, fixed interest rate debts (98% range)

 Main Data
LTV (based on gains orlosses from valuation)

End of 25th
PeriodJun. 2014

End of 26th
PeriodDec. 2014

47.3%

46.4%

LTV (based on unitholders’-1.0pt49.9%－pt

21.6 billion

30.0 billion+8.3 billion

Ratio of long-term, fixedinterest rate debts
Average maturity ofinterest-bearing debts
Average interest rate ofinterest-bearing debts

97.2%

98.2%

+1.0pt

3.8 years

3.9 years+0.1 years

1.44%

1.27%

-0.17pt（as of February 19, 2015）

Credit Rating Agency

Change49.9%

capital)Acquisition capacity

 Credit Rating Status

Corporate Credit Rating (Outlook)

R&I

AA-

(Rating and Investment Information, Inc.)(Stable)Long-term: A (Stable)

S&P

Short-term: A-1(Standard & Poor’s Ratings Japan K.K.)(Note 1) The acquisition capacity represents the amount calculated by setting the LTV (based on appraisal value) at maximum 50%.
(Note 2) The average maturity and average costs of interest-bearing debts are rounded to the nearest specified unit.

 Diversification of Repayment Dates of Interest-Bearing Debts(JPY 100 million)

Corporate bonds

250

Long-term borrowings

金融機関（as of February 19, 2015）

Short-term borrowings

200
50

150
100

130
135

50

131

51
0

27th

70

50

195
130

51
28th

29th

30th

31st

32nd

40

20

83

81

91

33rd

34th

35th

80
36th

60
37th

20

100
48
38th

39th

20

25

40th

41st

50
42nd

43rd

50
44th

45th

30
20
46th

85
10
47th

50th

22

3-3. Financial Operation andOthersInterest-Bearing Debt Costs Reduced and Shift to Long-Term, Fixed Interest
Rate Debts Promoted

Conducted refinance, including issuance of corporate bonds to be redeemed in 12 years, resulting in remaining maturity of
8.7 years and interest rate of 0.87% on average Results of New Financing and Repayment (26th Period)
Summary of New Financing and Repayment
New Financing(%)

Repayment and redemption

Total financing
amount13,000 JPY mn

Average agreed
period8.7 years

Average financing
interest rate

0.87%

+1.6 years-0.93pt

 Changes in Results of New Financing
1.2

Lenderamount(JPY mn)(year)

1.0

12

0.98

0.87

0.87

10

Average agreed
period0.8

8

7.2 years

0.6

6

Average financing
interest rate

1.80%

0.4

Interest
rate

20th Bonds

2,000

5

0.30%

21st Bonds

4,000

12

1.28%

Sep.24 Hachijuni Bank

1,000

2

0.42%

Dec.4 22nd Bonds

3,000

10

0.83%

Jul.22

0.96(years)1.07

13,000 JPY mn

Detail of New Financing and Repayment
Date

1.05

Average interest-bearing debt costs (left axis)

Total Repayment
Amount0.2

Term

Average maturity (right axis)

0.0
amount(JPY mn)Term(year)

Interest
rate

Amount

8.7 years

8.7 years

5.9 years

6.3 years

21st21st
Period22nd
Period22nd

23th
Period23th

24th
Period24th

25th
Period25th

26th
Period26th

38.8 bn.

22.9 bn.

18.8 bn.

23.0 bn.

16.5 bn.

13.0 bn.

4.7 years

5.8 years

420(Note) The average agreed period and average of interest-bearing debt costs are rounded to the nearest specified unit.

6,000

7

2.10%

1,000

1

0.46%

 Change in Average Maturity and Average Costof Interest-Bearing Debts
(%)

5,000

10

2.00%

Dec.5 Shinsei Bank

2,000

10

1.13%

Dec.5 Norinchukin Bank

1,000

3

0.44%

1,000

1

0.39%

Total and average

13,0008.7

0.87%

13,0007.2

1.80%

Average maturity (right axis)

1.7
1.5

1.57

Average interest-bearing debt costs (left axis)

1.53(years)

6

1.44

1.62

1.27

1.3

（Forecast）
1.24

5

4
1.1

（Reference）Actual Result (27th Period)
Feb.5

Meiji Yasuda Life
Insurance

1,000

10

1.04%

1,000

７

1.67%

0.9
0
0.7

3.3 years

3.4 years

3.5 years

22nd

23rd

24th

3.8 years

3.9 years

25th

26th

3

27th

0
2

(Note 1) Average interest-bearing debt costs =(Interest expenses + borrowing-related expenses + interest expenses for investment corporation bonds + investment corporationbond issuance costs) / balance of interest-bearing debt through the fiscal period(Note 2) The average maturity and average costs of interest-bearing debts are rounded to the nearest specified unit.

23

3-3. Financial Operation andOthersDiversification of Lenders and Utilization of Investment Corporation Bonds

Established a lender formation with 30 financial institutions, making it the basic policy to do business with them in negotiated deals
Issued investment corporation bonds in a dynamic and flexible manner since listing, aiming to diversify lenders and reduce financing costs

 Status of Borrowings
Lender Status of Corporate Bonds
Balance as ofDec. 31, 2014
(JPY mn)Mizuho Bank, Ltd.

22,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

18,000Sumitomo Mitsui Banking Corporation
Shinsei Bank, LimitedAozora Bank, Ltd.

7,900

Mizuho Trust & Banking Co., Ltd.

7,000

Mitsubishi UFJ Trust and Banking Corporation

7,000

Lenders of Interest-bearing Debts

Name

Balance as ofDec. 31, 2014
(JPY mn)

7th Series of Corporate Bonds

4,500

12,90011th Series of Corporate Bonds

6,000

9,000

12th Series of Corporate Bonds

7,000

13th Series of Corporate Bonds

7,000

14th Series of Corporate Bonds

2,000

15th Series of Corporate Bonds

5,000

16th Series of Corporate Bonds

2,000

17th Series of Corporate Bonds

5,000

18th Series of Corporate Bonds

2,000

19th Series of Corporate Bonds

5,000

20th Series of Corporate Bonds

2,000

21th Series of Corporate Bonds

4,000

Development Bank of Japan Inc.

5,720

The Bank of Fukuoka, Ltd.

5,000

Sompo Japan Nipponkoa Insurance Inc.

4,000

Meiji Yasuda Life Insurance Company

3,604

ORIX Bank Corporation

3,000

Shinkin Central Bank

3,000

The Shinkumi Federation Bank

3,000

Taiyo Life Insurance Company

3,000

The Chugoku Bank, Ltd.

3,000

The Nishi-Nippon City Bank, Ltd.

3,000

Sumitomo Life Insurance Company

2,000

Zenkyoren (The National Mutual Insurance Federationof Agricultural Cooperatives)

2,000

Daido Life Insurance Company

2,000

The Hachijuni Bank, Ltd.

2,000

Resona Bank, Limited

2,000

The Iyo Bank, Ltd.

1,000

Tokyo Marine & Nichido Fire Insurance Co., Ltd.

1,000

Tokyo Tomin Bank Limited (Note 2)

1,000

The Norinchukin Bank

1,000

The Bank of Yokohama, Ltd. (Note 2)

1,000

Mega Bank

Corporate Bonds
54.5 billion yen
29%

52.9 billion yen
28%

Interestbearing
debt status
Regional Bank
17.4 billion yen

9%191billion yen

2%

Central Bank11%

4.0 billion yen
Insurance
Company
20.6 billion yen

14%

7%

Large Bank
27.6 billion yen

Trust Bank

22th Series of Corporate Bonds

3,000

Balance of corporate bonds

54,500 Status of Commitment Line
Contract
Lender

14.0 billion yen
Mizuho Bank, Ltd.

4,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,000

Sumitomo Mitsui Banking Corporation

4,000

Aozora Bank, Ltd.

4,000
4,000
4,000

The Minato Bank, Ltd. (Note 2)

800

Mizuho Trust & Banking Co.,The Yamaguchi Bank, Ltd. (Note 2)

500 (Note 1) All borrowings are unsecured and Unguaranteed.
100 (Note 2) These are borrowings made through originating a syndicated loan.

Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited

136,524 (Note 3) All borrowings are long-term, fixed interest rate debt except for (Note 2).

Total commitment line

The Chiba Kogyo Bank, Ltd. (Note 2)
Total borrowings

Balance as ofDec. 31,2014(JPY mn)

4,000
28,00024

3-4. Medium-Term Target

DPU Growth in Stages

Continue stable growth toward the medium-term target, with DPU for the 27th fiscal period ending June 2015 forecasted
to achieve another period-on-period increase Changes in DPU Growth in Stages

Stable growth toward JPY6,500
as medium-term target（yen/unit）

6,500

Maintained JPY6,000
in normal operation
6,000

5,500
0

Recovered to JPY6,000
in normal operation

18th

19th

20th

6,351

21st

22nd

23rd

24th

25th

26th

6,360

27th

（Forecast）

Potential by Lease-up of Vacancies

Potential by Rent Revision

Potential by Refinance(Contribution to DPU by lease-up of properties subject to leasing strengthening)
Assumed contributions for the 28th period
Full-period addition when occupancy rate increases to 97%(Breakdown of revised rents in the 27th period and thereafter)(Reduction of interest rates by refinances in the 27th period and thereafter)

27th（yen/unit）

481.7 million

150

785.4 million

100

yen

50
0

yen

31st～

Kanematsu Kanematsu MS Shibaura
Annex

GotandaSendagaya

Breakdown ofmonthly rents,
etc. of tenants
having revision ofmonthly rents

30th
235.1 million
yen

28th
253.4 million
yen
29th

329.9 million

Amount of interest-bearing debts
whose repayment dates will arrive inthe 27th through the 31st periods

76.8 billion yen

Average interest-bearing debt costfor the above period

1.28％(excluding scheduled repayment due in the period)

Average agreed interest rate
assumed from the current base rate
and the spread (individuallyassumed with the agreed periods of
5 to 10 years)

0.77% ～

1.07%

yen

（Note） The assumed contributions to DPU in the above graphs show the amounts divided by the number of investment units outstanding at period end. “Breakdown of monthly rent, etc. of tenants with contract renewal” indicates the contract renewal periods andmonthly rent and common charges, etc. compiled for each fiscal period, based on the lease agreements, etc. as of the end of December 2014.

25

4. Appendix

26

4. Appendix

Trend of Office Property Leasing Market

Vacancy rate decreased due to strong new demand, with the average rent increasing by 4.6% in 2014

 Forecast for Changes in Supply and Demand Trend and
Vacancy Rate

 Change in Vacancy Rate and Average Rent

• If new demand is created at mostly the same level as in the past three
years, the vacancy rate will show a decreasing trend in 2015 andthereafter (model A)

Vacancy Rate -3.96pt (compared with Jun. 2012)
Rate of increase in average rent +4.6％ (2014)(yen/tsubo)

18,0009.43(%)

Peak of vacancy rate
(Jun.2012)10• If new demand is limited to a certain extent, the vacancy rate will remainin the level at upper 4% (model B)
400

8.7
7.3
5.5

8

17,5007
5.47

17,00016,953

2
16,2072013

Average rent （left axis）

5

model A
200

0

4
3

2012

model B300

6516,50010Forecast

9

16,0000(%)（thousand tsubo）

0

100

-5

1

2014
Vacancy rate （right axis）(Note) Prepared by TRIM on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co., Ltd

0

0

2012

2013

2014

2015

New supply (left axis)
New demand (model A; left axis)
Vacancy rates (model A; right axis)
Vacancy rates (actual results; right axis)

2016

2017

2018

-10

New demand (actual results; left axis)
New demand (model B; left axis)
Vacancy rates (model B; right axis)(Note) Actual results through 2014 are based on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co., Ltd.,and new supply in 2015 and thereafter have been prepared based on surveys and simulations conducted by
TRIM, with reference to the research data by Sumitomo Mitsui Trust Research Institute Co., Ltd.

27

4. Appendix

Trend of For-sale Real Estate Market

With cap rates decreasing even further, the ratio of property acquisitions by J-REITs tended to decrease relatively

 Changes in Acquisition Cap Rates of Office Properties in Tokyo(J-REITs)

 Changes in Acquisition Results by Business Sector
Ratio of property acquisitions by J-REIT relatively
decreased while other sectors increased their presence

Cap rate in 2014 dropped to the level it was at in 2008(%)

Acquisition Result

7（JPY 100 million）

J-REITsSPCs

14,000Construction and Real Estate

Corporation and Finance Institution, etc.

Others

12,00010,000

6

8,000
6,000
4,000
2,000

5

0

1st

2nd

2006

1st

2nd

2007

1st

2nd

2008

1st

2nd

1st

2009

2nd

2010

1st

2nd

2011

1st

2nd

2012

1st

2nd

2013

1st
2014

Composition Ratio

4(%)

OthersCorporation and Finance Institution, etc.

Construction and Real Estate

SPCs

J-REITs10075
032002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(Note) The indicated cap rates are for the office properties located in 23 Wards of Tokyo and acquired by J-REITs,
and have been prepared by TRIM based on the press releases by respective J-REITs.

50
25
0

1st

2nd

2006

1st

2nd

2007

1st

2nd

2008

1st

2nd

2009

1st

2nd

2010

1st

2nd

2011

1st

2nd

2012

1st

2nd

2013

1st
2014

（Note） Prepared by TRIM based on survey on actual real estate transaction by Urban Research Institute Corporation28

Track Record of JPR

4. Appendix

 Changes in Distribution per Unit
(JPY/ unit)

6,912 6,873

8,000

5,738

6,000
4,000

6,081

6,671

6,370 6,411 6,509

6,873 6,996 6,671 7,122 7,092

6,933 6,770

5,680 5,611 5,876

6,430

6,093 6,031 6,006 6,150 6,351

94.8

94.4

3,731

2,545

Average distribution per unit from the 1st through 26th fiscal periods: JPY 6,174

2,000

 Changes in Average Occupancy Rate
（%）

100

95.2

94.0

95

93.8 92.6 93.1

90

94.3

94.9

96.1 97.7 98.3

99.0

98.7

98.0

97.0 96.2 96.4

96.1

93.6

94.0

95.0

95.6

96.9

97.0

97.2

Average of period-average occupancy rate from the 1st through 26th fiscal periods: 95.8%

85

 Changes in Operating Revenue(JPY mn)

15,00010,00014,330

5,000

0

4,469

4,972

5,264

1st
Period2nd
Period3rd
Period

6,421

6,790

4th
Period5th
Period7,685

6th
Period

8,503

8,587

8,588

9,088

7th
Period8th
Period9th
Period10th
Period10,830 11,171
10,056 10,449

11thPeriod12th
Period13th
Period14th
Period15th
Period11,493

13,278 13,591 13,734 13,902
12,345 12,963
12,314 11,870
11,529 11,772

16th
Period17th
Period18th
Period19th
Period20th
Period21stPeriod22nd
Period23rd
Period24th
Period25th
Period26th
Period29

Steady External Growth Achieved since Listing

4. Appendix

 Portfolio Management Standards
Target investment ratio by
Tokyo
80～90%
area
Other Cities 20～10%

Target investment ratio byasset class

OfficeRetail70～90%
30～10%(Note) Upon listing, JPR’s portfolio management standard set the target investment ratios at approximately 60% for Tokyo and 40% for regional cities by region and at approximately 80% for office properties and 20% for retail properties by asset class.
This standard was replaced by the present standard, which focuses on office properties in Tokyo, in the 16th Period ended December 2009.

 History of Growth of Portfolio Size
（JPY 100 million）

5,000

Office (Tokyo)

Office (Other Cities)

Retail properties

Total properties sold

4,055

4,500

Average increase in assets from the 1st through 26th fiscal periods: JPY 12.5 billion/period

4,000

3,809

3,500

3,312

3,000

2,751 2,806

2,000

1,636

1,500

500
0
-500

3,415 3,415 3,449

3,106

2,453 2,519

2,500

1,000

2,994

1,257
921

945

401

415

388

397

132

132

527
397
332

1,796

1,396
575

439

774

479

912

479

2,092
1,976 2,026

992

1,001

1,001

452

483

452

572

638

-93

-93

382

382

404

500

-4

-4

-4

-62

2,592

2,224
1,357

1,416

1,082

1,147

431

431

431

394

939

939

961

995

-144

-144

-144

-181

4,047 4,047
3,919 3,986

2,592

2,658

2,719

2,719

2,719

2,095

2,198

2,198

2,232

311

265

265

265

265

265

375

375

375

375

375

953

953

952

952

952

952

952

952

952

952

952

952

-306

-306

-354

-354

-354

-354

-354

-354

-354

-354

-354

-354

1,729

1,841

311

1,001

452

770
-93

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

11th

12th

13th

14th

15th

16th

17th

18th

19th

20th

21st

22nd

23rd

24th

25th

26th

PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriod30

Overview of Portfolio

4. Appendix

Makes the best of management advantages of a compound portfolio, achieves high management returns（as of December 31, 2014）

No. ofproperties

Leasablespace

No. of tenants

Occupancyrate

NOI yield

After-depreciationyield

62 properties

460 thousand ㎡

632 tenants

97.0%

4.4%

3.5%

 Enhanced Stability through Diversification
Diversification by AssetClass
Retailproperties

23.5%

Diversification by Area

Officeproperties

Other Cities

Diversification by Asset Class andArea

Central Tokyo
7.8%
52.6% Office properties
in Other Cities

17.1%

76.5%

While enhancing growth potential through investment in officeproperties in Tokyo, enhance profitability through diversified
investment in office properties in Other Cities and retail properties

Office properties
in Tokyo

67.3%

9.3%

15.7%

5
4
3

30.3%

Complement stability by incorporating some retailproperties into the portfolio

Diversification by Size

31.9%

Very Large

26.9%

C

1 The Otemachi Tower

8.9%

2 Olinas Tower

7.7%

3 Shinjuku Center Building

5.2%

4 Kanematsu Bldg.

4.0%

5 BYGS Shinjuku Bldg.

3.7%(Land with Leasehold Interest)

Large

B

41.2%

Address a variety of tenant needs by incorporating
properties with different sizes into the portfolio

D

L

K

JI

E
F
G
H

A
B
C
D
E
F
G
H
I
J
K
L

Tokyo Tatemono
ABC Development
Seiyu
Ito-Yokado
The LOFT
Olympic Group
Sompo Japan Nipponkoa
Insurance
Tower Records JapanTokyo Prime Stage
Taisei-Yuraku Real Estate
Tenants with over 1% share
Tenants with 1% or less share

Officeproperties inCentral Tokyo

JPY188.8 bn
3.6%

JPY83.9 bn
5.5%

JPY37.5 bn
5.1%

Average NOI yield:
4.4%

JPY95.2 bn
4.9%Enhance profitability throughdiversified investment
Bubble size = portfolio size (based on acquisition price) Growth Potential through Preferential Negotiation Rights

Tenant DiversificationA

Medium-sized20

Complement profitability by vigorously selective
investment in properties in Other Cities

Office properties
in Greater Tokyo
Office properties
in Other Cities Retail properties

6

Retail properties
in Tokyo
Greater Tokyo（as of December 31, 2014）7（as of December 31, 2014）

Retail properties
in Other Cities Portfolio that Enhances Growth Potential and Profitability

NOI yield (％)

 Overview of Portfolio

8.4%
7.8%
6.8%
4.3%
4.1%
2.1%
1.8%
1.8%
1.7%
1.3%
5.8%
54.1%

Reduce move-outs risk through tenant diversification(Note) All figures are as of the end of the 26th fiscal period, and the investment ratios represent the ratios based on the acquisition price (while tenant
diversification is based on leased space).

JPR owns preferential negotiation rights for most of the co-owned
properties, etc. that occupy approx. 57% of the portfolio
Co-owned properties, etc.: 30 properties
Full ownership: 32
properties
JPY 175.6 billion
Ratio of co-owned
43.3%
properties, etc.

(based on acquisition price)JPY

229.9 billion
56.7%(Reference)

Total asset value of the entire buildingsofco-owned properties, etc.

Approx. JPY 900 billion(JPR’s average equity interest: approx.
25%)(Note) The total asset value of the entire buildings represents the sum total of the values (converted to acquisition prices) of theentire buildings of respective co-owned properties, etc. owned by JPR, estimated after its equity interests and preferential
negotiation rights, etc. in each of them.

31

Status of Tenant Diversification (26th Period)

4. Appendix

 Tenant Ratio by Industry(Office Properties Only, Based on Leased Floor Space)
Medical andTransportation
welfare2.2%

2.5%
Public services

 20 Largest Tenants (Based on Leased Floor Space)
Sponsor and sponsor group

OthersTenant Name

Rank

1.0%

4.0%

Name of Occupying
Property

LeasedSpace at End
of 26thPeriod (m2)

Ratio to
Total
LeasedSpace at
End ofPeriodKanematsu Bldg.

Construction
8.0%
Finance andinsurance
11.0%
Real estate
9.5%
Wholesale andretailShinjuku Square Tower

Services
22.6%

1

Tokyo Tatemono Co., Ltd.

Shinjuku Center Bldg.
Olinas Tower

38,389.16

8.4

Kawasaki Dice Bldg.

Information andTokyo Tatemono Honmachi Bldg.

communication
16.3%

2

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.8

Manufacturing

3

Seiyu GK

Tanashi ASTA

31,121.71

6.8

12.6%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.3

5The LOFT Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.1

6Olympic Group Corporation

Musashiurawa Shopping Square

9,558.51

2.1

8,253.43

1.8

10.3%

 Ratio of Tenants Occupancy at Least 1% Each

Kawaguchi Center Bldg.

7

Sompo Japan Nipponkoa
Insurance Inc.

Yume-ooka Office Tower

8

Tower Records Japan Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

1.8

Tenant9

YK Tokyo Prime Stage

Otemachi Tower

1.7

occupying at(land with land leasehold)7,875.50

10

Taisei-Yuraku Real Estate Co., Ltd.

Rise Arena Bldg.

6,023.39

1.3

11

The Maruetsu, Inc.

Cupo-la Main Bldg.

5,963.00

1.3

12

BENETTON JAPAN CO., LTD.

Benetton Shinsaibashi Bldg.

5,303.98

1.2

13

Nitori Holdings Co., Ltd.

Musashiurawa Shopping Square

5,285.40

1.2

5,146.03

1.1(Office Properties Only, Based on Leased Floor Space)（as of December 31, 2014）least 1%
26.1%

Tenantoccupying less

(Note)

Tenants of retail properties（as of December 31, 2014）

Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.

Shinagawa Canal Bldg.

than 1%

14

Level-5 Inc.

73.9%

15

Hitachi Systems, Ltd.

JPR Nagoya Fushimi Bldg.

4,904.64

1.1

16

ATM Japan, Ltd.

Olinas Tower

4,255.56

0.9

17

CMIC HOLDINGS Co., Ltd.

Gotanda First Bldg.

4,236.65

0.9

18Canon Imaging Systems Inc.

Niigata Ekinan Center Bldg.

4,078.97

0.9

19

Kajima Corporation

Omiya Prime East

4,005.05

0.9

20Mitsubishi Electric Information Systems
Corporation

MS Shibaura Bldg.

3,922.74

0.9“Tenant Ratio by Industry” indicates the ratios of total leased spaces by relevant category to the total leased
spaces of respective properties comprising the portfolio. “Ratio of Tenants Occupying at Least 1% Each”
indicates the ratios of total leased spaces by tenants occupying at least 1% and less than 1% each,
respectively, to the total leased spaces of office properties. Furthermore, with regards to tenants conducting
sublease, the ratio is calculated based on the floor spaces subleased to their sublessees.

Tenants at
higher ranks
are either
JPR’ssponsors, etc.
or tenants ofretailproperties

Yakuin Business Garden

The largest
tenant interms ofoccupyingspace except
for thesponsors, etc.
and retailtenants

32

NOI Yield by Property (26th Period)

4. Appendix

Entire portfolio NOI: 4.4% Office building NOI: 4.3% Retail property NOI: 4.9%

Office building

Retail property

(%)

2

4

6

8

4.0

JPR Ichigaya Bldg.

6.5

Oval Court Ohsaki Mark West

2.6

Central Tokyo

5.6

Rise Arena Bldg.

4.5

Yume-ooka Office Tower

4.7

Olinas Tower

6.0

Tokyo Tatemono Yokohama…

6.9

Omiya Prime East

4.1
5.1

Musashiurawa Shopping Square

1.2

4.1

Kawasaki Dice Bldg.

4.5

5.5

Average of Greater Tokyo

8.0

Rokubancho Bldg.

Tokyo Tatemono Honmachi…

2.9

Tokyo Tatemono Kyobashi Bldg.

2.8
3.9

Ginza Sanwa Bldg.

3.6

Otemachi Tower (land with land leasehold) (5.5

Science Plaza – Yonbancho Plaza

5.1

Shibadaimon Center Bldg.

4.7

JPR Shibuya Tower Records Bldg.

2.5

JPR Daikanyama

4.0
5.4

JPR Hakata Bldg.

5.4

JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

7.3

Niigata Ekinan Center Bldg.

4.0

JPR Harajuku Bldg.

JPR Naha Bldg.

7.2

Sompo Japan Sendai Bldg.

7.1
7.5

Sompo Japan Wakayama Bldg.

4.4

Tenjin 121 Bldg.

6.2

JPR Dojima Bldg.

6.0

JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.

3.6
5.5

Yakuin Business Garden

5.1

JPR Umeda Loft Bldg.

1.3
3.4
3.2
3.6

9.9

7.0

JPR Musashikosugi Bldg.

2.8

Shinagawa Canal Bldg.

Average of Central Tokyo

7.5
5.8

Tachikawa Business Center Bldg.

Cupo-la Main Bldg.

5.6

Across Shinkawa Bldg. Annex

Yurakucho Ekimae Bldg.

7.1
5.3

Tanashi ASTA

4.5

BYGS Shinjuku Bldg.

Shinjuku Sanchome East Bldg.

Greater Tokyo

5.9
3.2

Shinjuku Center Bldg.

5.7
5.2

JPR Ueno East Bldg.

Gotanda First Bldg.

4.1

Benetton Shinsaibashi Bldg.

5.2

Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

10

4.3

Kawaguchi Center Bldg.

3.0

Shinjuku Square Tower

8

Shinyokohama 2nd Center Bldg.

2.8

Fukuoka Bldg.

6

JPR Yokohama Nihon Odori Bldg.

3.7

Shin-Kojimachi Bldg.

MS Shibaura Bldg.

4

Arca East

5.1

JPR Crest Takebashi Bldg.

2

JPR Chiba Bldg.

3.4

JPR Ningyo-cho Bldg.

JPR Jingumae 432

0

2.6

Kanematsu Bldg.
Kanematsu Bldg. Annex

Minami Azabu Bldg.

(%)

10

Other Cities

0

3.6
5.1

33

Contracting Status of Tenants by Property (26th Period)

4. Appendix

Occupied
Floor Space

VacatedFloor SpaceNet Increase / Decrease of
Floor Space

Office (Central Tokyo)

3,429㎡

8,136㎡-4,707㎡

Office (Greater Tokyo)

3,531㎡

3,094㎡

437㎡

Office (Other Cities)

1,028㎡

140㎡

887㎡

Retail

235㎡

231㎡

3㎡

Total

8,224㎡

11,603㎡-3,378㎡

Other
CitiesGreater Tokyo

Central Tokyo（㎡）
Net Increase /Decrease of
Floor Space

Vacated Floor Space
-2,008Kanematsu Bldg.

-785

Shin-Kojimachi Bldg.

+84

MS Shibaura Bldg.

-3,922JPR Ichigaya Bldg.

-500

Shinjuku Square Tower-385

BYGS Shinjuku Bldg.

+103

Shinjuku Center Bldg.

+76

Shinagawa Canal Bldg.

-251

Tokyo Tatemono Kyobashi Bldg.

+775

Science Plaza – Yonbancho Plaza-338

Shibadaimon Center Bldg.

+436

JPR Jingumae 432+235

JPR Chiba Bldg.

-89

Shinyokohama 2nd Center Bldg.

+294

Occupied Floor Space
+1,222+84-3,922-1,016

+516
-385
-33
-179

+137
+255

-251
+775
-338
+436
+235
-343

+254
-161

+455

Kawaguchi Center Bldg.

-22

-251

+229

Tachikawa Business Center Bldg.

-90

-281

+191

Olinas Tower+344

Tokyo Tatemono Yokohama Bldg.

0-1,757+2,102-299+299

Kawasaki Dice Bldg.

-231

JPR Hakata Bldg.

+749

-76

JPR Nagoya Fushimi Bldg.

-64

-64

Yakuin Business Garden

+203

-231

(Note) The above graphs exclude properties at which there were no changes in tenants during the 26th fiscal period, but include changes in tenants from the amendment of lease contracts, etc.

+825

+203

34

Appraisal Value by Property (26th Period)

4. Appendix(JPY mn, %)Property name

ChangeEnd of 25th Period Book Value End of 26th Period
Acquisition
at End ofAppraisal
Price
Appraisa
Appraisal
Yield
Yield 26th Period
Yield
Value
l ValueValue
16,276
11,7004.2
14,683
12,100
4.1
400
-0.1

Property nameAcquisition
Price

ChangeBook Value End of 26th Period
at End of Appraisal
Appraisal
Yield
Yield
Yield
26th Period
Value
Value
5.3
5,449
3,030
5.2
60
-0.1

End of 25th Period

Tachikawa Business Center Bldg.

3,188

Appraisal
Value
2,970

Kanematsu Bldg. Annex

2,874

2,300

4.6

2,423

2,240

4.5

-60

-0.1

Rise Arena Bldg.

5,831

6,560

4.8

5,449

6,990

4.6

430

-0.2

JPR Ningyo-cho Bldg.

2,100

2,290

4.8

1,959

2,340

4.7

50

-0.1

Yume-ooka Office Tower

6,510

5,500

5.4

5,634

5,700

5.2

200

-0.2

Shin-Kojimachi Bldg.

2,420

2,920

4.5

2,437

2,940

4.4

20

-0.1

Olinas Tower

31,30033,700

4.4

28,83733,800

4.3

100

-0.1

JPR Crest Takebashi Bldg.

4,000

2,730

4.5

3,344

2,840

4.4

110

-0.1

Tokyo Tatemono Yokohama Bldg.

7,000

7,050

5.4

6,925

7,280

5.2

230

-0.2

MS Shibaura Bldg.

11,20010,8004.9

11,126

11,000

4.8

200

-0.1

Omiya Prime East

6,090

6,480

5.5

6,137

6,590

5.4

110

-0.1

Gotanda First Bldg.

2,920

2,750

4.7

2,654

2,020

4.6

-730

-0.1

Tanashi ASTA

10,20012,6005.6

7,576

12,900

5.5

300

-0.1

Fukuoka Bldg.

2,920

2,790

4.4

3,013

2,860

4.3

70

-0.1

Cupo-la Main Bldg.

2,100

2,580

5.7

1,819

2,620

5.6

40

-0.1

JPR Ichigaya Bldg.

5,100

4,650

4.4

5,253

4,700

4.3

50

-0.1

JPR Musashikosugi Bldg.

7,260

5,310

5.3

7,153

5,410

5.2

100

-0.1

Oval Court Ohsaki Mark West

3,500

4,460

4.6

2,995

4,540

4.5

80

-0.1

Musashiurawa Shopping Square

4,335

4,030

5.4

3,918

4,100

5.3

70

-0.1
-

Kanematsu Bldg.

Shinjuku Square Tower

10,180

7,486

4.3

8,859

7,492

4.3

6

-

15,08015,0004.4

14,057

15,0004.4-

BYGS Shinjuku Bldg.

15,121

13,6004.4

15,61813,900

4.3

300

-0.1

Greater Tokyo

122,891

125,200-

111,421127,040

-

1,840

-

710

801

5.3

609

825

5.2

24

-0.1

Niigata Ekinan Center Bldg.

2,140

2,270

6.5

1,727

2,300

6.4

30

-0.1

Shinjuku Center Bldg.

21,00012,9004.1

22,165

13,100

4.0

200

-0.1

Tokyo Tatemono Honmachi Bldg.

4,150

3,240

5.6

4,146

3,250

5.5

10

-0.1

Minami Azabu Bldg.

3,760

2,420

5.0

3,897

2,500

4.8

80

-0.2

JPR Hakata Bldg.

2,900

2,650

5.7

3,079

2,700

5.6

50

-0.1

Shinagawa Canal Bldg.

1,870

1,750

4.7

1,782

1,770

4.6

20

-0.1

JPR Naha Bldg.

1,560

1,350

6.6

1,379

1,350

6.5

-

-0.1

Rokubancho Bldg.

2,800

3,200

7.0

2,872

3,200

6.9

-

-0.1

Sompo Japan Sendai Bldg.

3,150

3,330

6.2

2,253

3,400

6.0

70

-0.2

JPR Harajuku Bldg.

8,400

7,060

4.4

8,746

7,330

4.3

270

-0.1

Sompo Japan Wakayama Bldg.

1,670

1,600

7.2

1,422

1,600

7.2

-

-

Tokyo Tatemono Kyobashi Bldg.

5,250

5,130

4.6

5,352

5,560

4.4

430

-0.2

Tenjin 121 Bldg.

2,810

2,110

5.5

2,196

2,180

5.4

70

-0.1

JPR Dojima Bldg.

2,140

2,110

5.4

2,171

2,160

5.3

50

-0.1

JPR Hakata-chuo Bldg.

1,920

1,620

5.6

1,842

1,680

5.4

60

-0.2

Across Shinkawa Bldg. Annex

Kawasaki Dice Bldg.

5,100

6,020

4.8

4,963

6,160

4.7

140

-0.1

JPR Sendagaya Bldg.

15,050

11,100

4.3

15,100

11,100

4.3--

Ginza Sanwa Bldg.

3,400

3,360

3.9

3,634

3,450

3.8

90

-0.1

JPR Nagoya Fushimi Bldg.

4,137

2,850

6.1

4,051

2,880

6.0

30

-0.1

36,00038,7003.4

38,38839,800

3.3

1,100

-0.1

Yakuin Business Garden

10,996

11,6005.2

11,04412,000

5.0

400

-0.2

Science Plaza – Yonbancho Plaza

2,660

2,850

4.6

2,690

2,930

4.5

80

-0.1

JPR Umeda Loft Bldg.

13,00013,4004.7

12,45913,700

4.6

300

-0.1

Shibadaimon Center Bldg.

3,420

3,820

4.5

3,423

3,962

4.4

142

-0.1

Benetton Shinsaibashi Bldg.

5,430

4,450

4.7

5,144

4,450

4.7

-

-

12,00012,900

4.1

11,583

13,200

4.0

300

-0.1

Housing Design Center Kobe

7,220

6,530

6.2

6,451

6,660

6.1

130

-0.1

JPR Daikanyama

2,160

1,520

4.1

2,189

1,540

4.0

20

-0.1

JPR Chayamachi Bldg.

JPR Jingumae 432

4,275

3,410

3.8

4,325

3,600

3.7

190

-0.1

Shinjuku Sanchome East Bldg.

2,740

2,560

4.1

2,684

2,620

4.0

60

-0.1

JPR Nihonbashi-horidome Bldg.

Otemachi Tower(land with land leasehold)

JPR Shibuya Tower Records Bldg.

Yurakucho Ekimae Bldg.

3,400

2,800

3.9

3,352

2,860

3.8

60

-0.1

Central Tokyo

212,606

190,777-

212,131

194,479

-

3,702

-

Arca East

5,880

6,180

4.5

4,454

6,220

4.5

40

-

JPR Chiba Bldg.

2,350

1,680

6.0

2,330

1,690

5.9

10

-0.1

JPR Yokohama Nihon Odori Bldg.

2,927

2,380

5.6

2,588

2,380

5.5

-

-0.1

Shinyokohama 2nd Center Bldg.

1,490

1,620

6.0

1,468

1,620

5.9

-

-0.1

Kawaguchi Center Bldg.

8,100

7,310

5.9

7,086

7,390

5.8

80

-0.1

JPR Ueno East Bldg.

3,250

4,250

4.8

3,046

4,320

4.7

70

-0.1

(Note) The yield is the capitalization rate based on the Direct Capitalization Method.

6,000

4,830

4.8

5,977

4,990

4.6

160

-0.2

Other Cities

69,22363,940-65,34865,300

-

1,360

-

Total

404,720

379,917-

388,901

386,819

-

6,902

-

846

4.5

823

877

4.4

31

-0.1

Property Acquired in the 26th Fiscal Period
Shibadaimon Center Bldg.
800(additional ownership)※The appraisal value at the end of the 25th period indicates the value upon acquiring the property (as of July 1, 2014).
Difference between Appraisal Value and Book Value atthe end of 26th fiscal period-2,02735

Status of Unitholders (26th Period)

4. Appendix

 Top 10 Principle Unitholders

 Number of Units by Investor TypeEnd of 25th Period

End of 26th Period

Increase/decrease

End of 25th Period

End of 26th Period

No. of units

Share (%)

No. of units

Share (%)

191,995

23.3

180,845

21.9

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

51,936

6.3

61,582

7.5

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

51,056

6.2

49,105

6.0

Top 10 Principle Unitholders

No. of units

Share (%)

No. of units

Share (%)

No. of units

Share (%)

39,736

4.8

36,973

4.5-2,763-0.3

489,72659.4

478,016

57.9-11,710

-1.4

282

0.0

720

0.1

438

0.1

85,79910.4

81,3319.9-4,468-0.5

336,03640.7

328,550

39.8-7,486-0.9

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

37,558

4.6

31,777

3.9Life insurance companies

47,322

5.7

48,661

5.9

1,339

0.2

Tokyo Tatemono Co., Ltd.

29,3003.6

29,300

3.6

Nonlife insurance companies

3,689

0.4

1,554

0.2

-2,135-0.3

Kawasaki Gakuen

25,0003.0

25,000

3.0

Credit unions (Shinkin banks)

10,7091.3

11,227

1.4

518

0.1

Meiji Yasuda Life Insurance Company

24,0002.9

24,0002.9

12,411

1.5

15,129

1.8

4,908

0.6

12,998

1.6

Individuals
Financial institutions
Major banks with national networks

Regional banks
Trust banks

OthersOther domestic companies
Foreign investors
Securities companies
Total

5,889

0.7

5,973

0.7

84

0.0

State Street Bank West Client Treaty

83,927

10.2

83,110

10.1

-817

-0.1

180,76721.9

207,057

25.1

26,290

3.2

State Street Bank and Trust Company 505223

30,844

3.7

19,8442.4-11,000-1.3

825,000

100

825,000

100--

End of 25th Period

End of 26th Period

Increase/decrease

Share (%)

No. of units

Share (%)

No. of units

Share (%)

11,748

94.6

11,142

94.1

-606

-0.4

124

1.0

128

1.1

4

0.1

1

0.0

1

0.0

-

0.0

Regional banks

47

0.4

47

0.4

-

0.0

Trust banks

Major banks with national networks

12

0.1

14

0.1

2

0.0

Life insurance companies

9

0.1

10

0.1

1

0.0

Nonlife insurance companies

5

0.0

3

0.0

-2

-0.0

Credit unions (Shinkin banks)

32

0.3

35

0.3

3

0.0

18

0.1

18

0.2

-

0.0

Other domestic companies

207

1.7

198

1.7

-9

0.0

Foreign investors

328

2.6

345

2.9

17

0.3

OthersSecurities companies
Total

Total

(%)

No. of units

Financial institutions

8,740

1.1

11,812

1.4

436,904

53.0

441,548

53.5

State Street Bank -West Pension Fund Clients – Exempt Unitholder Ratio (by Number of Investment Units)

 Number of Unitholders by Investor Type

Individuals

Japan Trustee Services Bank, Ltd. (Trust Account)

18

0.1

23

0.2

5

0.0

12,425100

11,836

100

-589

-

Foreign Investors

Other Domestic Companies

Financial Institutions

Individuals

100

75

25.3

25.4

23.4

25.9

25.3

23.0

21.9

11.5

11.7

11.3

10.3

9.9

10.0

10.2

55.9

55.5

57.6

57.4

58.6

61.8

63.1

25.1
10.1

50
60.3

25

0

7.3

7.3

7.7

6.5

6.2

5.1

4.8

4.5

19th

20th

21st

22nd

23rd

24th

25th

26th

PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriod36

4. Appendix

Initiatives on Environment Friendliness

JPR has continuously conducted environmental-friendly management operations, including the Project to Promote
Renovations for Higher Energy Efficiency, and has received certain recognition from external organizations.

 Project to Promote Renovations for Higher Energy Efficiency  Acquisition of DBJ Green Building Certification
Aimed at promoting energy saving of existing building stocks and activating related
investments, the Project calls for the national government to support part of the expenses
required to conduct renovation works for higher energy efficiency and barrier-freearrangements by private-sector operators and other parties, in an effort to promote energysaving renovations of building stocks.

Energy-saving renovation at Shin-Kojimachi Bldg.
• FrameAttached solar radiation adjustment films to the glass
surface Installed heat-insulating mats on the rooftop• Air-conditioning system

Replaced to EHP-type individually-controlled air
conditioning equipment Enabled economic
operations by subdividing the system• Lighting equipment

Replaced fluorescent lamps in common areas to
LED lamps

Energy efficiency improved by 15.7% with energy-saving

Obtained the DBJ Green Building Certification, a system by Development Bank ofJapan Inc. (DBJ) to certify real estate properties evincing high environmental andsocial awareness, for 13 properties
Properties withexceptionally highenvironmental & social
awareness

Olinas Tower

Properties withexcellent environmental& social awareness

Yakuin Business
GardenProperties with highenvironmental& social awareness

JPR
Shinagawa Rise Arena
Sendagaya
Bldg.
Canal Bldg.
Bldg.

YumeOmiyaooka-OfficePrime East
Tower

Properties withsatisfactory environmental& social awarenessvolume totaling 1,037GJ/year due to implementation of
the renovation work
Ratio of subsidies to renovation expenses:
one third (up to JPY 50 million)*National government subsidizes one third of the expenses.

Results in initiatives
Minami Azabu
Building

JPR Ueno
East Bldg.

BYGS
Shinjuku
Bldg.

JPR
Nihonbashihoridome
Bldg.

Kanematsu
Bldg.

Oval Court
OhsakiMark West Designation of “Green Star”, the Highest Ranking, in the GRESB Survey
JPR HakataChuo Bldg.

Jun. 2014

Sep. 2014

Installed EHPtype airconditioning
equipment

Installed GHPtype airconditioning
equipment

Effect; 1,794GJ(-14.2% (forecast))
Subsidy;24 million yen

JPR Crest
Takebashi
Bldg.

Effect; 903GJ(-14.3% (forecast))
Subsidy;34 million yen

JPR was designated as “Green Star,” the highest ranking
among the four evaluation categories, in the 2014
survey, with acknowledgements given to the superiorityof JPR’s “Management & Policy” and “Implementation &Measurement” dimensions.
The Global Real Estate Sustainability Benchmark (GRESB) is a benchmark system for evaluating sustainability
performance in the real estate sector, established in 2009 primarily by major European pension fund groups.
It is based on surveys conducted each year for real estate companies and investment managers. As of
September 2014, more than 130 GRESB members (pension funds and other institutional investors as well as
investment managers and real estate companies) utilize GRESB to evaluate investment targets.

37

Overview of Asset Manager

4. Appendix

 Governance System

 Remuneration System of Asset Manager

The Asset Manager receives an asset management fee which consists of a
fixed fee and incentive fees.

 Highly independent list of Directors
Not only the supervising officers but also the executive officer of JPR (investment
corporation) does not concurrently serve as directors of the Asset Manager (TRIM), so thatthe independence of JPR has been strengthened.

 Various shareholding structure and strengthened independence•The diversified shareholding structure of the sponsors comprising five companies
contributes to securing the independence of TRIM.
•TRIM President and CEO has assumed office after having his employment transferred to
TRIM, instead of being seconded from the sponsor company he belonged to.
•The Compliance Office general manager in charge of internal control is not a person
seconded from any of the sponsors.

 Decision Making Based on Stringent Processes

Material transactions to be conducted with the sponsors, etc. are screened and verified interms of their validity and rationality by the Compliance Committee, in which an outside
attorney participates as a special member. The Committee employs unanimous vote, notmajority vote, for approvals in principle.

Decision-making Process(for property acquisitions)

Review, screening

Decision on
acquisition policy

Due diligence
Prior review/
approval oftransaction withrelated party
Final decision on
acquisition
Decision making on
acquisition overcertain amountCompliance Subcommittee
Investment Subcommittee
Due Diligence Subcommittee

Review to ensure that decision procedures at Investment
Subcommittee are in compliance with laws, regulations,
JPR’s Articles of Incorporation, internal policies of AssetManager
Decide on acquisition policy after reviewing
disclosed material from seller, etc.

TRIM’s Board of
Directors

Fixed fee

Decide on acquisition upon review of due diligencereport and result of negotiations with seller anddetermine whether compliant with policy andappropriateness of acquisition priceCalculation of Compensation
JPY 12.5 million per month
2% of JPR’s total revenue（at least 80 billion yen: 1.5％）

Incentive Fee 1
Incentive Fee 2

3% of JPR’s income before
income taxes

Incentive Fee 3

0.25% of the acquisition priceupon new acquisition

Results ofRemuneration(26th Period)

Share

75 mn yen

15.4%

248 mn yen

51.0%

162 mn yen

33.2%

2 mn yen

0.4%

 Asset Manager
Name

Tokyo Realty Investment Management, Inc.

Capitalization¥ 350 million

Business
description

Asset management for investment corporation

Review legal compliance, property review,
environmental risk, rights and engineering report; if
there are problems, then review solutions andimprovement plans

Compliance Committee
JPR’s Board Directors
Investment Subcommittee

Item

Name

Shareholder

Number of
units

Share

Tokyo Tatemono Co., Ltd.

2,800

40%

Taisei Corporation

1,400

20%

Yasuda Real Estate C., Ltd.

1,400

20%

Sompo Japan Nipponkoa Insurance
Inc.

700

10%

Meiji Yasuda Life Insurance
Company

700

10%

7,000

100%

Total

38

4. Appendix

Fund Summary
25th Period
Jun. 2014

26th Period
Dec. 2014

25th Period
Jun. 2014

1 Operating revenue

13,734 mn yen

13,902 mn yen

29 Number of units outstanding

825,000 units

825,000 units

2 Rent revenue – real estate

13,734 mn yen

13,902 mn yen

30 Total cash distributions

5,073 mn yen

5,239 mn yen

3 Expenses related to rent business

6,599 mn yen

6,733 mn yen

31 Distribution per unit (fiscal period)

6,150 yen

6,351 yen

4 Profits

7,134 mn yen

7,169 mn yen

32 Distribution per unit (annualized)

12,401 yen

12,598 yen

5 Depreciation

1,834 mn yen

1,841 mn yen

33 Net assets per unit

239,046 yen

239,246 yen

6 Net income

5,072 mn yen

5,238 mn yen

34 FFO per unit (annualized)

16,883 yen

17,022yen

7 Total assets

414,104 mn yen

414,091 mn yen

8 Short-term loans payable

2,000 mn yen- mn yen

9 Long-term loans payable

132,690 mn yen

10 Investment corporation bonds

35 AFFO payout ratio

26th Period
Dec. 2014

Investment unit price
36

81.5%

82.2%

370,000 yen

425,000 yen

136,524 mn yen

37 PER

29.84 times

33.74 times

56,500 mn yen

54,500 mn yen

38 FFO multiple

21.92 times

24.97 times

681 mn yen

706 mn yen

39 ROE

5.33%

5.41%

12 Net assets

197,213 mn yen

197,378 mn yen

40 PBR

1.55 times

1.78 times

13 Unitholders’ capital

192,044 mn yen

192,044 mn yen

41 Distribution yield (%)

8,968 mn yen

9,010 mn yen

15 NOI yield (based on acquisition price)

4.5%

4.4%

43 NAV per unit

NOI yield (based on book value)

4.6%

4.6%

44 NAV multiple

1.7 times

1.8 times

17 NOI yield (based on appraisal value)

4.8%

4.6%

45 Appraisal value

379,917 mn yen

387,697 mn yen

18 Implied cap rate

3.6%

3.4%

46 Book value

390,001 mn yen

389,724 mn yen-10,084 mn yen-2,027 mn yen

11 Capital expenditure

14 NOI
16(immediately before the ex-rights date)

42 NAV

19 FFO (annualized)

13,928 mn yen

14,043 mn yen

47 Unrealized gains or losses

20 AFFO6,225 mn yen

6,373 mn yen

48 PML value

21 EBITDA

8,259 mn yen

8,318 mn yen

49 Acquisition price

6.5 times

7.2 times

22 DSCR

3.4%

3.0%

182,054 mn yen

190,110 mn yen

220,672 yen

230,437 yen

3.5%

2.0%

404,720 mn yen

405,520 mn yen

13,879 mn yen

13,871 mn yen

5,098 mn yen

5,247 mn yen

Next Fiscal Period (Forecast)

23 LTV (based on total assets)

46.2%

46.1%

50 Operating Revenue

24 LTV (based on gains or losses from valuation)

47.3%

46.4%

51 Net income

25 LTV (based on unitholders’ capital)

49.9%

49.9%

52 Distribution per unit (fiscal period)

6,180 yen

6,360 yen

Distribution per unit (annualized)

12,259 yen

12,825 yen

26 Ratio of long-term interest-bearing debts

97.2%

98.2%

27

Average interest rate of interest-bearing debts

1.44%

1.27%

28

Average maturity of interest-bearing debts

3.8 years

3.9 years

53

39

Portfolio Map

4. Appendix

Property Diversification（as of Dec. 2014 based on acquisition price）
Investment ratioin Tokyo area

82.9%

52.6%

Other cities

62properties

Central Tokyo

15 properties 17.1%
405.5
692 billion
Billion yen

30 properties
213.4 billion
Greater Tokyo

30.3%

c

17 properties
122.8 billion

Other Cities
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.
Housing Design Center Kobe

C-7

JPR Hakata Bldg.

C-14

Tenjin 121 Bldg.

C-18

JPR Hakata-chuo Bldg.

C-20

Yakuin Business Garden Osaka
Fukuoka

A-1

Kanematsu Bldg.

A-16

Shinagawa Canal Bldg.

A-2

Kanematsu Bldg. Annex

A-17

Rokubancho Bldg.

A-3

JPR Ningyo-cho Bldg.

A-18

JPR Harajuku Bldg.

A-4

Shin-Kojimachi Bldg.

A-19

Tokyo Tatemono Kyobashi Bldg.

A-5

JPR Crest Takebashi Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

C-12

Sompo Japan Sendai Bldg.

Sendai

Niigata
NagoyaC-1

C-19

Niigata Ekinan Center Bldg.

JPR Nagoya Fushimi Bldg.

A-22

Ginza Sanwa Bldg.

A-23

Otemachi Tower (land with land leasehold)

A-9

JPR Ichigaya Bldg.

A-24

Science Plaza・Yonbancho Plaza

Shibadaimon Center Bldg.
JPR Shibuya Tower Records Bldg.

A-12

BYGS Shinjuku Bldg.

A-2

JPR Daikanyama

A-13

Across Shinkawa Bldg. Annex

A-3

JPR Jingumae 432

A-14

Shinjuku Center Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-15

Minami Azabu Bldg.

A-5

A-3

A-23

Tokyo

A-13
A-8

A- 5

Fukuoka Bldg.

A-1

A-20

A-1
A-2

Harajuku

Gotanda First Bldg.

A-25

A-5

A-9
A-17

Shibuya Ward

A-8

Shinjuku Square Tower

A-24

A-21

A-7

Oval Court Ohsaki Mark West

Ichigaya

A-4

JPR Sendagaya Bldg.

A-10

Chiyoda Ward
A-12

A- 4

A-21

A-11

Shinjuku Ward
Shinjuku

A-14

MS Shibaura Bldg.

A-3

A-19
A-22

A-18

Minato Ward

A-1

A-25

Shibuya

Chuo Ward
A-2
Tamachi
A-15

A-6
Gotanda
A-10
A-16

A-7

Shinagawa Ward

Yurakucho Ekimae Bldg.(Yurakucho Itocia)

Ohsaki

OimachiGreater Tokyo All other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures
B-1

Arca East

B-1

Tanashi ASTA

B-2

JPR Chiba Bldg.

B-3

Cupo-la Main Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-4

JPR Musashikosugi Bldg.
Musashiurawa Shopping
SquareKawasaki Dice Bldg.

B- 5

Shinyokohama 2nd Center Bldg.

B-5

B-6

Kawaguchi Center Bldg.

B-6

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
Tokyo Tatemono
Yokohama Bldg.
Omiya Prime East

B-12
B-13

Kobe
Wakayama

A-11

A-6

B

C-4

C-4

Central Tokyo Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards

A

Omiya

B-13

SAITAMA
B-5

B-6

Musashiurawa

B-3

CHIBA

Kawaguchi

Ikebukuro
B-9

B-1
B-8

TachikawaB-7

Tanashi

B-11
B-1

Ueno
Shinjuku

TOKYO

Kinshicho
Tokyo
Chiba

Shibuya
ShinagawaB-2
Musashikosugi

KANAGAWA
B-4
KawasakiShin-Yokohama

B-6

B-5
B-12
B-3
B-10

Yokohama
Nihon-odoori
Kamiooka

Okinawa

C-9
C-13

JPR Naha Bldg.

Sompo Japan Wakayama Bldg.

40

4. Appendix

A-1 Kanematsu Bldg.

Portfolio List（Central Tokyo）
A-2 Kanematsu Bldg. Annex① Chuo-ku① Chuo-ku

A-3 JPR Ningyo-cho Bldg.

A-4 Shin-Kojimachi Bldg.

① Chuo-ku① Chiyoda-ku② S・RC・SRC B2/13F② SRC B1/8F② SRC・RC B1/8F② SRC B1/9F③ Feb. 1993

③ Feb. 1993

③ Dec. 1989

③ Oct. 1984

④ 14,995㎡④ 4,351㎡④ 4,117㎡④ 5,152㎡⑤ 11,906㎡⑤ 3,455㎡⑤ 4,117㎡⑤ 3,258㎡⑥ 79.4%⑥ 79.4%⑥ 100.0%⑥ 77.2%(87.4%)⑦ Dec. 2001

⑦ Dec. 2001

⑦ Noc. 2001

⑦ Nov. 2001

⑧ 16,276 mn yen⑧ 2,874 mn yen⑧ 2,100 mn yen⑧ 2,420 mn yen

A-5 JPR Crest Takebashi Bldg.

A-6 MS Shibaura Bldg.

A-7 Gotanda First Bldg.

A-8 Fukuoka Bldg.

① Chiyoda-ku① Minato-ku① Shinagawa-ku① Chuo-ku② SRC B1/9F② SRC・RC・S B2/13F② SRC・RC B2/11F② SRC B2/10F③ Sep. 1999

③ Feb. 1988

③ Jul. 1989

③ May. 1990

④ 4,790㎡④ 31,020㎡④ 10,553㎡④ 11,627㎡⑤ 4,790㎡⑤ 15,439㎡⑤ 4,035㎡⑤ 2,020㎡⑥ 100.0%⑥ 58.0%⑥ 59.6%⑥ 26.2%⑦ Jun. 2002

⑦ Mar. 2003

⑦ Jul. 2003

⑦ Oct. 2003

⑧ 4,000 mn yen⑧ 11,200 mn yen⑧ 2,920 mn yen⑧ 2,920 mn yen

A-14 Shinjuku Center Bldg.

A-9 JPR Ichigaya Bldg.

A-10 Oval Court Ohsaki Mark West

A-11 Shinjuku Square Tower

11,034㎡(敷地面積)

－

100%

2014年4月

2012年3月

11,034㎡(敷地面積)

36,000百万円① Chiyoda-ku⑤②－③ 2014.4
11,034㎡④(ground area)

11,034㎡(ground area)⑥ 100%⑦ Mar. 2012
⑧ 36,000 mn yen

A-12 BYGS Shinjuku Bldg.

① Shinagawa-ku① Shinjuku-ku① Shinjuku-ku② SRC B1/9F② S・SRC B2/17F② S・RC・SRC B4/30F② SRC B2/14F③ Mar. 1989

③ Jun. 2001

③ Oct. 1994

③ Sep. 1985

④ 5,889㎡④ 28,576㎡④ 78,796㎡④ 25,733㎡⑤ 5,889㎡⑤ 4,025㎡⑤ 10,766㎡⑤ 25,733㎡⑥ 100.0%⑥ 23.9%⑥ 38.8%⑥ 100.0%⑦ May. 2004

⑦ Jun. 2004

⑦ Jul. 2004

⑦ Nov 2004

⑧ 5,100 mn yen⑧ 3,500 mn yen⑧ 10,180 mn yen⑧ 15,121 mn yen

A-15 Minami Azabu Bldg.

A-16 Shinagawa Canal Bldg.

① Chuo-ku① Minato-ku① Minato-ku② S・SRC B2/10F② S 9F② S B1/8F③ Jun. 1994

③ Jun. 1992

③ 2008.7④ 5,535㎡④ 4,570㎡④ 5,216㎡⑤ 1,233㎡⑤ 4,570㎡⑤ 1,677㎡⑥ 35.5%⑥ 100.0%⑥ 45.6%② SRC・RC・S B5/54F ⑥ 8.6%

⑦ Nov. 2004

⑦ Jul. 2008

⑦ 2008.12③ Oct. 1979

⑦ Mar. 2008

⑧ 710 mn yen⑧ 3,760 mn yen⑧ 1,870 mn yen④ 176,607㎡⑧ 21,000 mn yen⑤ 8,172㎡

千代田区大手町① Chiyoda-ku

A-13 Across Shinkawa Bldg. Annex① Shinjuku-ku

A-23 Otemachi Tower (land with land leasehold)

A-17 Rokubancho Bldg.
① Chiyoda-ku② SRC B3/7F③ Oct 1991
④ 4,205㎡⑤ 4,205㎡⑥ 100.0%⑦ Dec. 2009
⑧ 2,800 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

41

4. Appendix

A-18 JPR Harajuku Bldg.

Portfolio List（Central Tokyo）
A-19 Tokyo Tatemono Kyobashi Bldg.

⑤ 6,466㎡② SRC B1/9F⑥ 100.0%③ Mar. 1989

⑦ Dec. 2009

④ 6,466㎡⑧ 8,400 mn yen

A-5 Yurakucho Ekimae Bldg. (Yurakucho Itocia)① Chiyoda-ku

A-21 JPR Sendagaya Bldg.

A-22 Ginza Sanwa Bldg.

① Chuo-ku① Shibuya-ku① Chuo-ku② SRC B1/10F② SRC B1/9F② S 8F② SRC B2/9F③ Jan. 1981

③ Jun. 2002

③ May. 2009

③ Oct. 1982

④ 4,420㎡④ 7,191㎡④ 7,683㎡④ 8,851㎡⑤ 4,420㎡⑤ 7,191㎡⑤ 7,683㎡⑤ 2,043㎡⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 26.6%⑦ Feb. 2010

⑦ Mar. 2010

⑦ May. 2010

⑦ Aug. 2011

⑧ 5,250 mn yen⑧ 5,100 mn yen⑧ 15,050 mn yen⑧ 3,400 mn yen

A-24 Science Plaza – Yonbancho Plaza① Shibuya-ku

A-20 JPR Nihonbashi-horidome Bldg.

① Chuo-ku

A-25 Shibadaimon Center Bldg.

① Chiyoda-ku① Minato-ku② S・SRC・RC B2/12F② S・SRC B1/10F③ Feb. 1995

③ Jul. 1993

④ 24,560㎡④ 11,419㎡⑤ 3,213㎡⑤ 5,285㎡⑥ 22.4%⑥ 65.4%⑦ Dec. 2013

⑦ Dec. 2013

⑧ 2,660 mn yen⑧ 4,220 mn yen

A-1 JPR Shibuya Tower Records Bldg..

A-2 JPR Daikanyama

A-4 Shinjuku Sanchome East Bldg.

A-3 JPR Jingumae 432① Shibuya-ku① Shibuya-ku① Shibuya-ku① Shinjuku-ku② SRC・S B3/8F② RC B2/2F② S・SRC B1/7F② S・SRC・RC B3/14F③ Feb. 1992

③ Jul. 2002

③ Feb. 2006

③ Jan. 2007

④ 8,449㎡④ 668㎡④ 1,066㎡④ 24,617㎡⑤ 8,449㎡⑤ 668㎡⑤ 1,066㎡⑤ 2,328㎡⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 12.5%⑦ Jun. 2003

⑦ Oct. 2004

⑦ Mar. 2006

⑦ Mar. 2007

⑧ 12,000 mn yen⑧ 2,160 mn yen⑧ 4,275 mn yen⑧ 2,740 mn yen⑤ 1,087㎡② S・SRC B4/20F⑥ 1.9%(2.1%)③ Oct. 2007

⑦ Aug. 2008

④ 71,957㎡⑧ 3,400 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

42

4. Appendix

B-1 Arca East Bldg.

Portfolio List（Greater Tokyo）
B-3 JPR Yokohama Nihon Odori Bldg.

B-2 JPR Chiba Bldg.
① Sumida-ku① Chiba, Chiba② S・SRC B3/19F② S・SRC B1/13F③ Mar. 1997

③ Jan. 1991

④ 34,281㎡④ 9,072㎡⑤ 6,911㎡⑤ 9,072㎡⑥ 38.3%⑥ 100.0%⑦ Nov. 2001

⑦ Dec. 2001

⑧ 5,880 mn yen

B-11 Olinas Tower⑧ 2,350 mn yen⑦ 2009.6⑧ 31,300百万円

B-1 Tanashi ASTA
② SRC B2/17F③ Feb. 1995
④ 80,675㎡⑤ 20,727㎡⑥ 43.6%（51.3%）⑦ Nov. 2001
⑧ 10,200 mn yen⑤ 7,781㎡⑥ 100.0%⑥ 100.0%⑦ Nov. 2001

⑦ Sep. 2002

⑧ 2,927 mn yen⑧ 1,490 mn yen

B-9 Rise Arena Bldg.

③ Oct. 1992

③ Dec. 1994

③ Jan. 2007

④ 8,490㎡④ 14,706㎡④ 91,280㎡⑤ 8,490㎡⑤ 4,812㎡⑤ 5,972㎡⑥ 100.0%⑥ 47.9%⑥ 25.2%⑦ Mar. 2004

⑦ Sep. 2005

⑦ Mar. 2007

⑧ 3,250 mn yen⑧ 3,188 mn yen⑧ 5,831 mn yen

Yokohama,
Kanagawa⑤ 8,772㎡⑥ 100.0%⑦ Dec. 2010
⑧ 7,000 mn yen③ Jan. 2006
④ 48,321㎡⑤ 5,870㎡⑥ 16.7%(19.2%)⑦ Mar. 2006
⑧ 2,100 mn yen

Kawaguchi,
Saitama② S・SRC B2/15F①③ Feb. 1994
④ 28,420㎡⑤ 15,401㎡⑥ 86.5%⑦ Feb. 2004
⑧ 8,100 mn yen①

Yokohama,
Kanagawa② S・SRC・RC B3/27F③ Mar. 1997
④ 185,976㎡⑤ 14,196㎡⑥ 48.8%⑦ Jul. 2007
⑧ 6,510 mn yen

B-13 Omiya Prime East
① Saitama, Saitama② S 9F③ Feb. 2009
④ 9,203㎡⑤ 9,203㎡⑥ 100.0%⑦ Mar. 2013
⑧ 6,090 mn yen

B-4 JPR Musashikosugi Bldg.
Kawaguchi,①
Saitama② S・RC・SRC B2/10F

B-6 Kawaguchi Center Bldg.

B-10 Yume-ooka Office Tower② RC・SRC・S B3/42F

B-3 Cupo-la Main Bldg.
① Nishitokyo, Tokyo

⑤ 9,146㎡② S・SRC B1/12F④ 8,772㎡④ 257,842㎡④ 7,781㎡② S・SRC B1/8F③ May. 1981

③ 2006.2③ Aug. 1991

④ 9,146㎡① Toshima-ku② SRC B1/9F② SRC・RC・S B2/45F ⑥ 23.3%② S・SRC B2/12F③ Oct. 1989

① Tachikawa, Tokyo①⑤ 23,692㎡② SRC B1/11F① Taito-ku

B-12 Tokyo Tatemono Yokohama Bldg.

① Sumida-ku

Yokohama,①
Kanagawa

B-8 Tachikawa Business Center Bldg.

B-7 JPR Ueno East Bldg.

B-5 Shinyokohama 2nd Center

Yokohama,①
Kanagawa

Kawasaki,①
Kanagawa② SRC・RC・S B1/6F③ Mar. 1983
④ 18,394㎡⑤ 18,394㎡⑥ 100.0%⑦ Sep. 2006
⑧ 7,260 mn yen

B-5 Musashiurawa Shopping Square① Saitama, Saitama② S B1/4F③ Oct. 2005
④ 28,930㎡⑤ 14,465㎡⑥ 50.0%⑦ Mar. 2007
⑧ 4,335 mn yen

B-6 Kawasaki Dice Bldg.
Kawasaki,Kanagawa② S・SRC・RC B2/11F①③ Aug. 2003
④ 36,902㎡⑤ 13,925㎡⑥ 46.6%⑦ Apr. 2007
⑧ 15,080 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

43

4. Appendix

C-1 Niigata Ekinan Center Bldg.

Portfolio List（Other Cities）
C-4 Tokyo Tatemono Honmachi Bldg.

C-7 JPR Hakata Bldg.

C-9 JPR Naha Bldg.

① Niigata, Niigata① Osaka, Osaka① Fukuoka, Fukuoka② S・SRC B1/10F② SRC B3/9F② S・RC B1/12F,S1F③ Feb. 1970

③ Mar. 1996

④ 6,715㎡⑤ 6,715㎡⑥ 100.0%⑦ Jun. 2002
⑧ 1,670 mn yen⑦ Nov. 2001

⑧ 4,150 mn yen⑧ 2,140 mn yen② S 9F⑥ 100.0%⑦ Nov. 2001

⑦ Nov. 2001

③ Jul. 1996

⑤ 9,828㎡⑥ 72.0%(71.0%)⑥ 32.9%(58.0%)

Wakayama,①
Wakayama④ 9,828㎡⑤ 7,709㎡⑤ 5,444㎡

C-13 Sompo Japan Wakayama Bldg.

③ Jun. 1985

④ 14,619㎡④ 19,950㎡

C-14 Tenjin 121 Bldg.

⑧ 2,900 mn yen

C-17 JPR Dojima Bldg.
① Osaka, Osaka② S・SRC 13F② SRC B2/9F③ Jul. 2000
⑤ 3,117㎡⑥ 52.2%⑦ Jun. 2002
⑧ 2,810 mn yen② SRC・S 12F③ Oct. 1991
④ 5,780㎡⑤ 5,780㎡⑥ 100.0%⑦ Nov. 2001
⑧ 1,560 mn yen

C-18 JPR Hakata-chuo Bldg.

① Fukuoka, Fukuoka④ 8,690㎡

C-12 Sompo Japan Sendai Bldg.
① Naha, Okinawa③ Oct. 1993
④ 5,696㎡⑤ 5,696㎡⑥ 100.0%⑦ Jan. 2004
⑧ 2,140 mn yen① Fukuoka, Fukuoka② SRC 8F
③ Feb. 1993
④ 3,874㎡⑤ 3,874㎡⑥ 100.0%⑦ Jun. 2004
⑧ 1,920 mn yen① Sendai, Miyagi② SRC B1/12F③ Dec. 1997
④ 10,783㎡⑤ 10,783㎡⑥ 100.0%⑦ Jun. 2002
⑧ 3,150 mn yen

C-19 JPR Nagoya Fushimi Bldg.
① Nagoya, Aichi② SRC B1/9F③ Mar. 1991
④ 10,201㎡⑤ 10,201㎡⑥ 100.0%⑦ Mar. 2005
⑧ 4,137 mn yen

C-20 Yakuin Business Garden

C-1 JPR Umeda Loft Bldg

② SRC 14F

⑥ 100.0%③ Jan. 2009⑦ Aug. 2012

④ 22,286㎡⑧ 10,996 mn yen

C-5 JPR Chayamachi Bldg.

① Kobe, Hyogo① Osaka, Osaka② SRC B1/8F② S B2/10F② SRC･S B2/11F② S・SRC 9F③ Feb. 2003

③ Jun. 1994

③ Jun. 1994

④ 5,303㎡④ 33,877㎡④ 3,219㎡⑤ 5,303㎡⑤ 33,877㎡⑤ 3,219㎡⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ May. 2005

⑦ Sep. 2005

⑦ Aug. 2006

⑧ 5,430 mn yen⑧ 7,220 mn yen⑧ 6,000 mn yen④ 17,897㎡⑤ 22,286㎡

C-4 Housing Design Center Kobe

① Osaka, Osaka③ Apr. 1990

① Fukuoka, Fukuoka

C-3 Benetton Shinsaibashi Bldg.

① Osaka, Osaka⑤ 17,897㎡⑥ 100.0%⑦ May. 2003
⑧ 13,000 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

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