Japan Prime Realty Investment Corporation

40th Presentation Material For the Fiscal Period
Ended December 2021

（Asset Manager）
Tokyo Realty Investment Management, Inc.

Table of Contents

1. Public Stock Offering Highlights

4

2. Summary of Financial Results

6

3. Operational Status and Growth Strategy

91 Internal Strategy

13

2 External Strategy

19

3 Financial Strategy

24

4 Sustainability

26

4. Financial Results and Operating Forecasts

32

5. Appendix

40

2

Overview of JPR■Overview of JPR■Characteristics of JPR(as of the end of December 2021)

Name

Japan Prime Realty Investment Corporation(abbreviated as JPR)

Securities code

8955

Listing dateJune 14, 2002 (19 years since listing)End of fiscal
periodJune and December

Operational
standard of
portfolio(Ratio by asset class)
Office 70～90% / Urban Retail etc. 10～30%(Target investment
ratio)

Asset Manager(Ratio by area)
Tokyo 80～90% / Other cities 10～20%

Tokyo Realty Investment Management Inc.
(abbreviated as TRIM)

1

A track record of stable management
approaching 20 years

2

A robust portfolio focused on officeproperties in Tokyo

3

Since listing, JPR has steadily expanded its asset size while
enhancing the quality of its portfolio.

JPR has established a portfolio that is focused on office properties inTokyo, which feature growth potential, with urban retail properties
and office properties in regional cities to complement profitability.

Superiority pipeline of a developersponsored REIT
JPR has exerted its superiority of a developer-sponsored REIT toacquire properties having excellent location characteristics centering
on large-scale development projects.

45Realization of internal growth through highlevel of operation

Asset size

66 properties 484.8 bn. yen
Ratio by asset(Area)

Tokyo(Asset class)

OfficeAcquisition price and ratio of
properties from sponsor pipelines

363.1 bn. yen 74.9 %Period-average Occupancy Rate

96.9%

JPR has maintained a high portfolio occupancy rate and achieved
upward revisions of rent.

Credit rating

JCR AA

Establishment of a financial base that is
stable over the long term

Tokyo Tatemono Co.,Ltd. (75%)
Yasuda Real Estate Co,.Ltd.(10%)
Taisei Corporation Co,.Ltd. (10%)
Meiji Yasuda Life Insurance Company (5%)

AA- (stable)
S&P A(stable)LTV

6Commitment to sustainability
JPR seeks an improvement in unitholder value and contributes tothe realization of a sustainable society through the proactive
implementation of initiatives that squarely address social issues.

(stable)R&I

With a credit rating of AA (Stable), JPR has established afinancial base centering on long-term, fixed-interest rate debts
with a focus on stability.

Sponsors(shareholding
ratio)

83.5%
79.5 %

41.7 %■Inclusion in MSCI ESG SelectLeaders Index■5 Stars, the highest mark, in
GRESB Real Estate Assessment

3

JAPAN PRIME REALTY INVESTMENT CORPORATION

1. Public Stock Offering Highlights

4

1.Public Stock Offering
Highlights

Summary of 9th Public Stock Offering

Enhance the quality of the portfolio through strategic asset replacement and property acquisitions.
Increase the stability of distributions through the capitalization of gain on transfer and the expansion ofretained earnings over three periods■ Issue Summary (Domestic Offering)

Increase the stability of distributions through the capitalizationof gain on transfer and expansion of retained earnings overthree periods

2

Resolution date for issue /Determination date for issue conditions

January 4, 2022 to January 12, 2022

Issue price / Purchase price368,480 yen / 356,824 yen

Amount raised

13.8 billion yen

Number of new investment units
to be issued
Number of outstanding investment units
after offering

Dec. '21 Period

Jun. '22 Period

Dec. '22 Period

Gain on transfer:

910 mn. yen

1,330 mn. yen

1,340 mn. yen

38,928 units

Return to unitholders

250 mn. yen

530 mn. yen

490 mn. yen

997,178 units

Retained earnings

650 mn. yen

790 mn. yen

850 mn. yen(Note) December 23, 2021: Submission of shelf registration statement

Acquire prime properties and strategically replace assets
using sponsor pipeline

1

Acquired assets 39.9 bn. yen
Preferential
negotiation rightSponsorpipeline

Sponsorpipeline■ Trends in retained earnings balance (figures in parentheses representinternal reserves per unit)
3,340 mn. yen

Assets transferredAssetreplacement

Building age
31 years

After initiative

Number ofproperties/Asset size

65 properties/465.6 bn. yen

66 properties/488.3 bn. yen

Unrealized gains

110.1 billion yen

116.8 billion yen

NAV per unit

375 thousand yen

383 thousand yen

NOI/Afterdepreciation yield

4.8％/3.9％

4.8%/3.9％

Average building age

24.8 years

23.5 years

Ratio of officeproperties in Tokyo

68.5％

69.1％

Ratio of officeproperties/retailproperties

77.5％/22.5％

81.2％/18.8％

2021年6月期末
Jun. '21 Period

3(4,208 yen)

(3,355 yen)

(2,657 yen)

(1,969 yen)

Building age
51 years

Before initiative

2,540 mn. yen

1,880 mn. yen

4,190 mn. yen

2021年12月期末
Dec. '21 Period

2022年6月期末
Jun. '22 Period

2022年12月期末
Dec. '22 Period

Expand acquisition capacity for future by lowering LTV
Jun. '21 Period

Dec. '21 Period

After initiative

LTV

40.6%

41.7%

40.0%

Acquisition
capacity

38.9 bn. yen

29.3 bn. yen

46.0 bn. yen(Maximum LTV of 45%)

5

JAPAN PRIME REALTY INVESTMENT CORPORATION

2. Summary of Financial Results

6

Financial Results for the December 2021 Fiscal Period and Operating
Forecasts

2. Summary of Financial
Results

June 2021
PeriodResult（million yen）

Operating revenue

December 2021
PeriodResult17,305

18,253

Period-on-period
comparison
Increase/
Decrease+948

Compared with
forecast

Rate of
ChangeIncrease/
Decrease+5.5%+2,025Rate of
Change+12.5%

June 2022
PeriodForecast

December
2022 Period
Forecast

18,167

18,386-0.5%(period-on-period)+1.2%(period-on-period)

8,979

Rental income-realestate

9,021

8,651

-370

-4.1%

+27

+0.3%

9,096

+3.8%
(period-on-period)+1.3%(period-on-period)

9,247
Operating income

8,789

8,626

-162

-1.9%

+913

+11.8%

9,376

+7.2%
(period-on-period)+1.4%(period-on-period)

8,529
Ordinary income

8,121

7,893

-227

-2.8%

+929

+13.3%

8,579

+8.1%
(period-on-period)+0.6%(period-on-period)

8,528
Net income

8,120

7,892

-227

-2.8%

+929

+13.3%

（yen）

7,657

7,550

-107

-1.4%

±0

-%

+0.6%

(period-on-period)(period-on-period)

7,750

7,750

*1

Distribution per unit

8,579

+8.1%

+2.6%

(period-on-period)-%(period-on-period)*1 Distribution per unit is calculated after subtracting the following retained earning amounts (provision of reserve for reduction entry) from net income.
(million yen)Jun. ’21 period

Dec. ’21 period

Jun. ’22 period(plan)

Dec. ’22 period(plan)

Provision of reserve for reduction entry

783

659

799

850

7

Fluctuation in Distribution per Unit

2. Summary of Financial Results

EPU (excluding temporary factors) returned to the recovery path after hitting bottom in the December 2021
period.
The DPU forecast is 7,750 yen, which is a record-equaling high, thanks to the capitalization of gain on transfer.
Plus item

Minus item

(yen/unit)
Increase in rent and common charge(rent revision etc.)+20
Decrease in rent and common charge(move-in/ move-out)-23
Decrease in cancellation penalty income andincome equivalent to expense for restoration -68
Decrease in repairs and maintenance expense +91
Increase in brokerage fee-22
Decrease in depreciation and amortization+131

Increase in rent and common charge(rent revision etc.)+58
Decrease in rent and common charge(move-in/ move-out)-192
Decrease in cancellation penalty income andincome equivalent to expense for restoration -138
Increase in repairs and maintenance expense -30
Increase in depreciation
-29

DPU

Retainedearnings

687

Gain (loss)
on transfer
of property

7,657

1,058
118

Internal
growthDPU

Others

7,550

32
Asset
replacement

Expenses

342

Adjusted

Utilities
expenses

EPU

7,297

27 16 25

Asset Others
replacement

Jun.’21 period

Rise Arena Bldg.
+53
Grand Front Osaka+249
Tokyo Tatemono HigashiShibuya+165
Tokyo Tatemono Honmachi -31
JPR Umeda Loft-89

Retainedearnings

Rise Arena Bldg. +12
JPR Hakata Bldg. -28

Increase in rent and common charge(rent revision etc.)+29
Increase in rent and common charge(move-in/ move-out)+136
Increase in depreciation-27

Dec. ’21 period

346

Utilities
expenses

101 69Internal
growth36

Dilution

287

Retainedearnings

802

Gain ontransfer ofproperty

1,339

Adjusted

EPU

7,320

Property
taxes

Jun. ’22 period (forecast)

853

Gain ontransfer ofpropertyDPU

107 7,750

Expenses

1,345
Higashi-Shibuya+27
Umeda Loft
-76

DPU

7,750
92
Expenses

AdjustedAssetreplacement

EPU

49

7,350

166
Internal
growth87

OthersDec. ’22 period (forecast)

1. Fluctuations in distribution per unit are shown as amounts calculated by dividing the amounts of changes in each fiscal period by the number of investment units outstanding as of the end of the fiscal
period preceding each such period. For the June 2022 period, the amounts of change items before and after calculating the adjusted EPU are shown as those divided by the total number of investment
units outstanding at the end of December 2021 (958,250 units) and the total number of investment units newly issued after capital increase (997,178 units), respectively.
2. "Adjusted EPU" is net income per unit before recording of gain (loss) on sale of real estate, etc.

8

JAPAN PRIME REALTY INVESTMENT CORPORATION

3. Operational Status and Growth Strategy

9

3. Operational Status and
Growth Strategy

Growth Strategy

Aim for sustainable improvement in unitholder value through the acceleration of external growth, effective asset
replacement, and the strategic utilization of gain on transfer and retained earnings

Unitholder
value

Expand scale/Improve
quality of portfolio throughsponsor pipeline

Growthdrivers

Properties acquired using
sponsor pipelines*1✓ Total acquisition price:366.6 bn. yen

Accelerate external growthutilizing low LTV

Stabilize distributions
through capitalization of gain
on transfer and utilization ofretained earnings

Pace of expansion in asset size

Retained earnings*1✓ 2016 - 2019: 29.2 bn. yen✓ Total: 4.19 bn. yen✓ 2020-: 48.8 bn. yen✓ 4,208 yen per unit

→ 75.1% of total portfolio

Operationalframework

Diversified robust portfolio
focused on favorably locatedoffice properties in Tokyo

High level of operational
capability throughcollaboration with Tokyo
Tatemono, which is themain sponsor

Commitment to sustainability*1. Amounts and percentages indicated under "Properties acquired using sponsor pipelines" and "Retained earnings" are estimates as of the end of the Dec. '22 period.

10

3. Operational Status and
Growth Strategy

DPU Strategy

Use ample retained earnings as a cushion to bolster DPU until market recovers
Aim for achievement of medium-term target of 7,800 yen through early recovery of occupancy and external
growthChange in Distribution per Unit and Medium-term Target

Simulation for Medium-term Target
Dividend contribution

Internal growth
Adjusted EPU*1(yen/unit)

7,800

Gain on transfer, etc.*2

Around 150 yen

Record high

7,750

7,800

7,750 7,750

Increase in rents andoccupancy rates

7,550

Every 1%
Recovery ofoccupancy＋
Propertyacquisitions

7,200

7,350
6,600

External growth

Dividend contribution

Around 150 yen

Acquisition of properties

7,320

Every 10 billion yen

7,297

1. Estimated LTV at end of Dec. '22 period is 40.0％.
2. Debt acquisition capacity is 46 billion yen (maximum LTVof 45％).
3. The above simulation does not include borrowing costs.

Dividend Stabilization Strategy
6,000018.6 18.12 19.6 19.12 20.6 20.12 21.6 21.12 22.6 22.12(forecast) (forecast)Medium-term
Target*1. "Adjusted EPU" is net income per unit before recording of gain on sale of real estate, etc.
*2. "Gain on transfer, etc." is gain (loss) on sale of real estate, etc. less the impact of property transfer on generalmanagement expenses and retained earnings.
*3. "Retained earnings balance" is estimate as of the end of the Dec. '22 period.

High level of retained earnings relative to other J-REITs
Seek to stabilize distributions through utilization of retained earnings
until market recovers

Retained earnings balance:
4,208 yen per unit*3

11

3. Operational Status and
Growth Strategy

Operational Status Summary

ResultInternal
GrowthStrategy

External
GrowthStrategy

Financial
Strategy

Dec. ’21 period

Change fromprevious period

Occupancy rate

96.9%

-1.3ptRatio of increase/decrease on rent
revision+0.8%-1.2ptRatio ofincrease/decrease on
tenant replacement-1.2%-5.0ptRent gap-0.6%±0.0ptDec. ’21 period

Change fromprevious period

Asset size

484.8 bn. yen+19.2 bn. yen

Number of properties66+ 1 property• Enhance the quality of the portfolio and achieve
portfolio rejuvenation through strategic asset
replacements.
• Significantly expand retained earnings throughproperty sales.
Dec. ’21 period

Change fromprevious period

LTV

41.7%

+1.2ptAverage debt interest
rate

0.73%

±0.0ptAverage maturity

4.6 years-0.2 years

Inclusion in MSCI Japan ESG Select Leaders index

Sustainability

GRESB

5 star (highest mark)

TCFDStatement of Support

Business environment perception

Future initiatives• The rise in the vacancy rate in the Tokyo officemarket has come to a halt.
• From October last year, conditions have been
improving, with leasing activities picking up even forlarge office spaces for which there was very little
movement previously.
• Although teleworking is becoming firmly established tosome extent, the tendency for companies to attach
importance to offices is strongly rooted.
• As companies review their office strategies, buildings
are differentiating themselves from each other by
location/spec.

• Implement flexible leasing activities according tochanges in the market environment and tenant needs• Continue to negotiate an upward revision in rent wherea negative rent gap exists.
• Continue to monitor COVID-19 pandemic and increasein new supply in central Tokyo planned for 2023.

• The property sales market remains overheated, andopportunities to acquire properties on the open market
are limited.
• Tokyo Tatemono, which is the main sponsor, will
pursue "expansion of property sales to investors" and"expansion of AUM of affiliated REITs, etc."• Focus on acquiring office buildings in Tokyo, taking fulladvantage of the sponsor pipeline.
• Seek to improve the quality of the portfolio throughasset replacement.
• Consider acquisitions of retail properties and hotels
based on careful assessment of recovery of demandand other factors.

• In Europe and the United States, quantitative easing
tapering is underway. However, generally, the lowinterest environment persists and conditions remainfavorable for debt financing.
• The equity financing environment will remainfavorable.

• Exercise conservative LTV control.
• Exercise debt management based on awareness offinancial soundness.
• Further diversify fund procurement methods.
• Monitor interest rate trends and Basel III.

• The importance of environmental issues in Japan andoverseas will increase further, with the Japan’s 2050
Carbon Neutral Declaration and the U.S. rejoining theParis Agreement.

• Make steady progress on 2030 strategy targets andmaterial issues through company-wide initiatives.
• Aim to achieve net zero carbon emissions by 2050 for
the realization of a decarbonized society.

123-1. Internal Strategy

Characteristics of JPR Portfolio

JPR has built a robust portfolio diversified in terms of area, grade, asset class andrent zone, with a focus on excellently located office buildings in Tokyo.
Ratio by grade/asset class (all properties, ratio of acquisition price)
S Class
Retail properties
18.8%

Other cities

Other cities

6.1%

Tokyo’s 23 wards
58.6%

A Class
13.4%

12.1%

B Class
19.6%

C Class
10.6%
Greater Tokyo
outside Tokyo’s
7.4% 12.1%
23 wards
Land withleasehold interest

Ratio by Rent Zone (office properties, ratio of acquisition price)

11.5%
24.8%
15 to lessthan 20
thousand yen

14.8%
Greater Tokyo
besides Tokyo’s
23 Wards
18.5%

Chuo Ward
12.1%

15.7% Chiyoda Ward
4.3%
Minato Ward
11.0%

13.1%
10.4%
Shinjuku Ward
Tokyo’s other18 wards
Shibuya Ward

Diversification of grade and asset class

Less than 15
thousand yen

Ratio by area（all properties, ratio of acquisition price)

30 thousand yen
or moreWell-balance regional diversification
with focus on Tokyo

Ratio by number of minutes walk from nearest
station (all properties, ratio of acquisition price)
Within5-10 minutes
9.7%

Directly linked
16.5%

15.4%
25 to lessthan 30
thousand yen

Within 3-5 minutes
16.6%

13.9%

20 to less than
25 thousand yen

34.4%

Within
1-3 minutes
27.6%

73.1%

Focus on office buildings in rent zone 15 to less than 20
thousand yen per tsubo, which are in highest demand
1. Figures reflect the acquisition of Tokyo Tatemono Higashi Shibuya Bldg. and sale of entire interest in JPR Umeda Loft Bldg.
2. Ratio by Rent Zone (office properties, ratio of acquisition price) figures do not include Grand Front Osaka.

Within
1 minute
29.6%

73.7%
Over 70% of properties are located within a
3-minute walk from the nearest station13

3-1. Internal Strategy

Occupancy Status

The occupancy rate is expected to improve in the June 2022 period. Continue to strengthen leasing activities,
aiming for improvement in occupancy rate.
Occupancy Rate

Major Move-Ins/Move-Outs■Jun.’22
Occupancy rate based on concluded contracts *Olinas Tower

98.3%

99.2%
98.6%

99.5%
98.9%

99.6%

99.5%

99.4%
99.1%

98.2%

97.4%

-5,608

Omiya Prime East
96.9%

97.5%

95.8%

95.1%

Dec. '21

Jun. '22（period）

Shinjuku Square Tower-179

BYGS Shinjuku Bldg.

-2,294-1,408

Tenjin 121 Bldg.

Jun. '19

Dec. '19

Jun. '20

Dec. '20

Jun. '21（forecast）

Move-in area

（㎡）

1,602

-461 258

360

1,845

698

-1,105 717

Yakuin Business Garden

1,310

Rise Arena Bldg.

1,174

Move-Ins/Move-Outs（period）

3,516

1,065

-1,277■Jun.’22

Move-in-1,089 689-4,005JPR Ichigaya Bldg.
Dec. '18■Dec.’21

Move-out

Occupancy rate based on generated rents

99.2%■Dec.’21

3,174

Average Free Rent PeriodMove-out area

Move-in rate

Move-out rate（㎡）

20,00010,000

1.5

1.6

2.5

2.7
0.8

2.6

3.4

3

1.0

0
-10,000-20,000

6

0
-1.1

-2.2

-1.7

-0.7

-1.3
-3.8

-2.9

-3
-3.9

-6

Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21 Dec. '21 Jun. '22（period）（forecast）* Only figures for occupancy rate based on concluded contracts include Grand Front Osaka.

(month)

6
4
2
0

1.8

1.0

Dec. '18

Jun. '19

0.8
Dec. '19

1.0

1.2

Jun. '20

Dec. '20

2.4
Jun. '21

3.7
Dec. '21（period）

14

3-1. Internal Strategy
Shinjuku Square
Tower

Central Tokyo

Properties Requiring Priority Action

Olinas Tower

OfficeNov. '21

Feb. '22

Jun. '22

89.0%

94.6%

91.9%

・ Situated among the skyscrapers in the Nishi-Shinjuku area, the building has astandard floor area of 290 tsubo.
・ The move-out of a large tenant (328 tsubo/JPR's equity interest: 301 tsubo)
was moved back later than previously forecast. Tenant plans to move out by
June this year.
・ Seek to fill the vacant space quickly by stressing the property size and highgrade feel.

Omiya Prime East

Greater Tokyo

Dec. '21

Apr. ‘22

May ‘22

100%

41.7%

65.0%

Central Tokyo

Mar. '22

Jun. '22

98.3%

78.0%

92.5%

・ This integrated office, retail, and residential development is a landmark
building in the Kinshicho area, with a standard floor area of more than 500
tsubo.
・ A large tenant (1,592 tsubo) will move out in March this year.
Plan to fill equivalent of 70% of this vacated space almost without downtime.
・ Renovate common areas to strengthen the building’s competitiveness.
・ Seek to fill the vacant space quickly by stressing the property size and highgrade feel.

Central Tokyo

Dec. '21

Mar. '22

Jun. '22

95.6%

87.7%

98.4%

・ Connecting directly to Shinjuku-Sanchome subway station, the building has
excellent transport links, and offers a standard floor area of 270 tsubo.
・ Multiple tenants (426 tsubo) will move out by the end of March this year.
・ Renovate common areas to strengthen the building’s competitiveness.
・ Fill vacant space left by four tenants (558 tsubo) by June this year.

OfficeDec. '21

Jun. '22

Unfixed

100%

100%

0.2%

・ The building is located in the Gotanda area, which has become increasingly
popular with IT and startup companies in recent years. The location isextremely convenient, three minutes' walk from the station. Standard floorarea of 180 tsubo
・ A large tenant (1,280 tsubo) is expected to move out (move-out timing has
yet to be determined).

JPR Ginza Namiki-dori
Building

OfficeOfficeDec. '21

Gotanda First Bldg.

Office・ Omiya serves as hub in Kita Kanto and many companies have branches andsales offices there.
・ The building is highly competitive in the area in terms of location and grade.
Standard floor area of 240 tsubo
・ A large tenant (1,211 tsubo) occupying five floors will move out in April thisyear. Two of the vacated floors (484 tsubo) have already been filled.
・ Plan to renovate the common areas to further increase the building’s
competitiveness.

BYGS Shinjuku
Bldg.

Greater Tokyo

Central Tokyo

Retail property

Dec. '21

Jan. '22

74.1%

100%

・ The building is located on Ginza Namiki St., which is home to many luxury
brand stores.
・ A luxury brand occupying a street-level store (1-3F) (138 tsubo) moved out
in November last year.
・ Succeeded in attracting a luxury brand in January this year, with almost no
down time.

Tenant(s) found15

Leasing status of Rise Arena Bldg.

3-1. Internal Strategy

Progress was made on leasing activities after the state of emergency was lifted. Reduce risk infuture by turning into a multi-tenant building.
Occupancy rate trend and outlook

Realization of multi-tenant building■Although leasing activities stalled temporarily under the impact of the declaration of a state of
emergency and other factors, the occupancy rate is recovering on the back of the return to normal
economic activity from October last year and additional acquisition■ Reduce risk in the future by turning into a multi-tenant building based on a
flexible leasing strategy.

100.0%

100%

Period under state of emergency

83.0%

Feb. 2022

1 tenant

7 tenants

With the lifting of the state of emergency,
progress has been made on leasing
activities to find tenants for large spaces

52.7%

Additional Acquisition
Move-outof tenant leasing
all floors

Dec. 2020

Ownership of office space increased
from 38.2% to 67.0%

Summary of Additional Acquisition■ Made additional acquisition utilizing preferential negotiation right with a view
to improving occupancy rate and turning into multi-tenant building.

0.0%
2021年1月
Jan.
2021

2021年4月
Apr.
2021

2021年10月
Oct.
2021

2022年2月
Feb. 2022

Implementation of work to renovate common-use spaces■ Renovated common-use spaces on move-out of tenant leasing all floors.
Elevator hallToiletAcquisition date October 28, 2021
Acquisition price 7,300 million yen
Appraisal value 7,660 million yen

NOI yield

4.2%

After-depreciation yield 3.6%
SellerHigashi-ikebukuro
LLC16

3-1. Internal Strategy

Status of Rent

Continue to negotiate upward rent revision in cases where a rent gap exists
Seek to maintain and raise rent levels by increasing the competitiveness of properties throughappropriate improvements
Ratio of Increase/Decrease on Rent Revision/Tenant Replacement(% of Total Contracts)

Monthly Rent Revision Increase/ Decease
Rate of upward revision
Upward revision

Upward revision(existing tenant)(tenant replacement)

27.9(million yen)

25.1

7.5

19.5

40

7.8
6.9

20
7.2
7.4
-0.8

0

20.8

Downward revision

27.7

15.4

12.9

17.1

13.4

-3.7

-2.6

-20

3.6
29.2

13.1

-40

30

（period）

20

Dec. '19■Tenant replacement

No change

47.7

49.4

Upward revision
Decrease in rent

No change

2.9

87.2

7.7

0.0

85.1

3.7 11.1

5.1

10
6.7

4.4

3.6
7.6

16.1

0

6.2

6.6

-0.0

Of which,
reduction of large
tenants -34.6

Upward revision
Decrease in rent(%)

(existing tenant and tenant replacement)

7.7

6.8

■Rent revision

Rate of increase in rent upon tenant replacement

-6.1

2.9
6.7
-6.8

5.8
-5.5

-35.8

Jun. '20

32.9

65.7

1.4

63.0

14.8

22.2

Jun. '21

26.6

72.1

1.2

67.6

10.8

21.6

Dec. '21

80.2

39.6

1.9

100 (%) 0

50

16.7

43.8

50

100 (%)

Status of Gap in Rent (Office/By fiscal period of rent renewal）(million yen)（thousand ㎡）+40

Decrease inlarge tenant

150

17.9

0

（forecast）

Area subject to rent renewal

43.5

Dec. '20

Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21 Dec. '21 Jun. '22 （period）

200

56.5

Lower than market rent

Higher than market range (new contract, etc.)

Within market range

Higher than market range (except for new contract)+20
Gap in rents

100

▲0.6%

+0

50
0
Dec. '18

Jun. '19

Dec. '19

Jun. '20

Dec. '20

Jun. '21

Dec. '21（期）（period）（period-on period
comparison ±0pt）-20Jun. '22

Dec. '22

Jun. '23

Dec. '23 （period）

1. Rent gap figure is only figure including Grand Front Osaka.
2. Forecast of monthly rent increase/decrease (forecast increase) for Jun. ’22 period is sum total of upward or downward revisions and increases or decreases in rent upon tenant
replacement.

17

3-1. Internal Strategy

Retail Property

Maintain a high occupancy rate, with long-term fixed rent as the basic format
Temporary rent reductions reached a plateau as economic activity returned to normal.
Status of temporary rent reductions and cancellations *1

Average Occupancy Rate（Retail properties）（%）

Jun. ‘20 period

Dec. ‘20 period

Jun. ‘21 period

Dec. ‘21 period

Number of temporary
reductions

61

41

35

20

Amount of temporary
reductions

94 million yen

45 million yen

67 million yen

47 million yen

Number of cancellations

－

２

10

6

Fixed term
building lease

Fixed rent

95.1%

Remaining contract periodLess than
2 years

15.1%

27.3%

2 years or more
and less than
3yearsOrdinary building
lease(traditional lease)

84.9%*2. Figures exclude JPR Umeda Loft Bldg.

0.4%

Dec. '19

Jun. '20

Dec. '20

Jun. '21

Dec. '21 （period）

17.7%

3 years or more
and less than 5years

5 years
more

54.6%

Urban type

Retail90.9%

Type of contract

Jun. '19

99.5

JPR Shibuya
Tower Records Bldg.

JPR
Chayamachi
Bldg.

JPR Ginza
Namiki-dori
Bldg.

Yurakucho
Ekimae Bldg.

(Yurakucho Itocia)

FUNDES
Ueno

Stationfront type

4.9%

3.7%

Bars &
Restaurants

99.3

Type of rent

Fixed rent andcommission

other

3.1%

100.0

Main Retail properties

Status of Lease Contract (Retail properties, Space ratio)*2
Tenant Sectors

100.0

90.0

*1. Figures exclude Grand Front Osaka.

2.3%

100.0

100.0

80.0

Services

99.9

Kawasaki Dice Bldg.

Tanashi ASTA

JPR
Musashikosugi
Bldg.

Housing Design
Center Kobe18

3-2.External Strategy

Acceleration of Pace of Property Acquisitions Utilizing Sponsor Pipeline

The pace of expansion in JPR's asset size accelerated, partly due to the Medium-Term Business Plan of Tokyo
Tatemono, which is the main sponsor.
Tokyo
TatemonoCo., Ltd.

2015-2019
Tokyo Tatemono's previous Medium-Term Business Plan

2020-2024
Tokyo Tatemono's current Medium-Term Business Plan
Further expansion of Group AUM and profit
opportunities
Balance of real estate for sale 114.7 billion yen(as of the end of December 2021)
AUM, including affiliated REITs, of 1.5 trillion yen(forecast of ‘24)

Key Strategies (excerpt)
Expand property sales to investors
Strengthen fund businessChanges in Asset Size

Growth from 2020:
48.8 billion yen(100 million yen)

5,000

2022/1
PublicOffering

Growth between 2016 and2019: 29.2 billion yen

2020/2PublicOffering

4,675

4,656

Dec.
'20
2020年
PeriodJun. '21
2021年

4,883

4,571

4,500

2017/1
PublicOffering

JPR

4,350

4,350

4,350

4,350

Jun.
'17
2017年
Period

Dec.
'17
2017年
Period

Jun.
'18
2018年
Period

Dec.
'18
2018年
Period

4,395

4,395

Jun. '19
2019年

Dec.
'19
2019年
Period

4,214
4,103

4,103

Dec.
'15
2015年
Period

Jun.
'16
2016年
Period

4,000

3,500
12月期末

6月期末

Dec.
'16
2016年
Period

12月期末

6月期末

12月期末

6月期末

12月期末

Period

6月期末

12月期末

Jun. '20
2020年
Period

6月期末

12月期末

Period

6月期末

After
本取組み後
物件入替後

property
replacement193-2. External Strategy

Summary of Newly Acquired Property

Grand Front Osaka (4.9% co-ownership interest)

Other Cities

OfficeSponsors

Acquired large-scale complex which is directly connected to JR Osaka Station and which was developed under aproject in which Tokyo Tatemono, which is the main sponsor, participated as one of developers.
Acquisition Highlights■ Grand Front Osaka has the best transportation convenience in Kansai, directly connected to JR
Osaka Station and offering access to its seven stations and twelve rail lines.
■ Completed in 2013, it boasts the largest- and highest-level office specifications in the Kansai
region.

北館テラスガーデン◼ The buildings have the latest seismic damping structure, space for emergency power
generators for use by tenants and enhanced security for reliable crisis and disastermanagement.
◼ Selected as a sustainable architecture lead project (CO2 reduction lead project), Grand Front
Osaka will switch to renewable electricity from September 2022.

Map of Surrounding Area

Knowledge Capital◼ Knowledge Capital, a core facility ofGrand Front Osaka, is a facility designed
to create new value from the fusion ofhuman creativity and technology.

Acquisition date
Acquisition priceAppraisal value
Total rentable area
NOI yield
After-depreciation yield
Occupancy rate
Seller(Umekita Plaza and(North Building)South Building)
December 24, 2021
11,800 million yen
9,500 million yen
12,300 million yen
10,100 million yen
5,290.60m2
8,474.10 m2
3.6%
3.9%
2.9%
3.1%
97.5%
98.2%
Tokyo Tatemono Co., Ltd.

◼ The place (the facility) and the functions(human support) of Knowledge Capitalwill be used in operations aimed atrealizing industry creation, cultural
introductions, international exchanges,
and human resources development.
Key Facilities at Knowledge Capital20

3-2. External Strategy

Summary of Newly Acquired Property

Tokyo Tatemono Higashi Shibuya Bldg.

Central Tokyo

OfficeSponsors(Asset acquired in Jun. '22 period)

Acquired an office building in Shibuya, an area currently undergoing redevelopment, from Tokyo Tatemono, which is
the main sponsor
Acquisition Highlights◼ The property is a 7-minute walk from Shibuya Station on the JR, Tokyo Metro and Tokyu Lines,
providing comparatively good access to multiple lines. The property faces Meiji-dori Avenue andenjoys high visibility.
◼ Equipped with an IC card security system and an indoor drive-in parking lot for 41 cars, theproperty is a high-spec office building.
◼ The Shibuya area is seeing growing demand especially among IT companies. The level of new
office supply in the future is expected to be low compared with other areas in Tokyo's central
five wards, and demand is expected to remain strong.

Market Environment in Shibuya Area
■ New office supply in Shibuya Ward will be limited
Level of new office supply by ward
(Forecast) (2021-2023)

Trends in asking rents of office buildings inTokyo's central 5 wards and other core cities

Shibuya Ward
1.8%

Acquisition date

January 18, 2022

Acquisition price

11,300 million yen

Appraisal value

12,100 million yen

Total rentable area

7,821.01 m2

NOI yield

4.4%

After-depreciation
yield

3.8%

Occupancy rate (asof acquisition date)Seller

Other
14.1%

130.0%

Shinjuku Ward
2.8%

Shibuya Ward
渋谷区
Chuo Ward
中央区
Shinjuku Ward
新宿区
Nagoya City
名古屋市
Fukuoka City
福岡市

Chiyoda Ward
千代田区
Minato Ward
港区
Osaka City
大阪市
Sapporo City
札幌市

120.0%

Chiyoda Ward

Minato Ward

12.4%

52.9%

110.0%

100.0%

Chuo Ward

90.0%

16.0%

95.2%
Tokyo Tatemono
Co., Ltd.

140.0%

80.0%
Note:

Level of supply of office buildings with standard floor areaof 50 tsubo or more
Source: Prepared by TRIM based on "Office Rent Data 2021"
published by Sanko Estate Co., Ltd. ("Sanko Estate")

2010/122012/12

2014/122016/122018/12Source: Prepared by TRIM based on "Office Rent Data 2021"
published by Sanko Estate

2020/1221

3-2. External Strategy

Continuous Implementation of Asset Replacement Strategy

Achieve realization of unrealized gains and improvement in portfolio quality through asset replacement withsponsor
2017

2016
FUNDES

Properties
acquired

Suidobashi
Sponsor’s
pipeline

JPR Ginza
Namiki-dori Bldg.

Tokyo
Shinagawa Canal Bldg. JPR Kojimachi
Square Garden (Additional ownership）
Bldg.
Sponsor’s
pipeline

Sponsor’s
pipeline

3.25 billion yen 10.1 billion yen
Assetreplacement

2020

2019

Preferential
negotiation right18.4 billion yen 0.17 billion yen

Assetreplacement

Sponsor’s
pipeline

FUNDES Ueno
Sponsor’s
pipeline

5.75 billion yen 3.8 billion yen

Otemachi Financial City Rise Arena Bldg.
North Tower(Additional ownership）

JPR Shinsaibashi Sencity Bldg.
West
Sponsor’s
pipeline

2021

Sponsor’s
pipeline

Sponsor’s
pipeline

3.75 billion yen 13.87 billion yen

11.4 billion yen

Preferential
negotiation rightTokyo Tatemono
Higashi Shibuya Bldg.

Sponsor’s
pipeline

Sponsor’s
pipeline

7.3 billion yen

21.3 billion yen

11.3 billion yen

Assetreplacement

Asset
replacement

Asset
replacement

GRAND FRONT
OSAKA

2022

Fukuoka Bldg.

Tokyo Tatemono Kyobashi
Bldg.

JPR Hakata Bldg.

Tokyo Tatemono
Honmachi Bldg.

JPR Umeda
Loft Bldg.

Building age
23years

Building age
26 years

Building age
38 years

Building age
35 years

Building age
51 years

Building age
31 years

Propertiessold

JPR Hakata
Chuo Bldg.

Continue strategic asset replacement

Summary of Transferred Properties■ Create a strong portfolio through continuous asset replacement■ Capitalize gain on transfer through realization of unrealized gain andexpand retained earnings

Main sponsor(Tokyo Tatemono)

JPR• Improve portfolio quality(including reducing averagebuilding ages, enhancing earningpotential and improving location)• Build up internal reserves which
will help stabilize distributions,though the realization of
unrealized gains• Acquire prime properties at areasonable price

Strategic sales

Assetreplacement

Acquisition ofprime properties• Tap into needs to acquireredevelopment properties• Step up property sales toinvestors• Expand group earning
opportunities bystrengthening fund businessincluding affiliated REITs

Tokyo Tatemono Honmachi Bldg.

JPR Umeda Loft Bldg.

Transfer price3.6 billion yen

17.5 billion yen

Appraisal value

3.5 billion yen

14.0 billion yen

Gain (loss) on
transfer(0.85 billion yen)

Timing oftransfer

December 2021

Transferee

Tokyo Tatemono Co., Ltd.
Transferred the oldest
property in the portfolio

4.45 billion yen

December 2021
40% ownership interest
June 2022 30% ownership interest
December 2022
30% ownership interest
Third party
Split property up and transferredover three periods at a price which
was 25% above the appraisal value223-2. External Strategy

Main Sponsor Pipeline

Actively take advantage of sponsor pipeline to expand acquisition opportunities
Properties owned by Tokyo Tatemono Co., Ltd.
in the vicinity of Tokyo Station

Tokyo Tatemono's pipeline
Real estate for long-term ownership reclassified as real estate for sale

■ Properties reclassified as real estate for sale
Between the end of December 2018 and the end of December 2020:
Approx. 54.0 billion yen■ Properties acquired by JPR
JPR Kojimachi Bldg.

5.75 billion yen

Acquired June 2019

JPR Shinsaibashi West3.75 billion yen

Acquired January 2020

Otemachi Financial City North Tower

11.4 billion yen

Acquired December 2020

Grand Front Osaka

21.3 billion yen

Acquired December 2021

Tokyo Tatemono Higashi Shibuya Bldg.

11.3 billion yen

Acquired January 2022

Real estate for sale developed as property for investors■ Medium-sized office(Tentative name) Sendai Hirose Dori
Project

Scheduled to be completed Spring ’23(Tentative name) Sapporo Kita 8-Jo Nishi
1-chome Redevelopment Project

Scheduled to be completed Winter ’23(Tentative name) Shibaura Project

Scheduled to be completed Spring ‘24(Tentative name) Sendai-Ekimae
Minamimachi Dori Project

Scheduled to be completed Spring ‘24■ Urban compact retail properties
FUNDES Tenjin Nishi DoriScheduled to be completed Mar. ‘22

Name

Completionyear

Otemachi Tower

2014

Otemachi Financial
City Grand Cube
JA Building,
Keidanren Kaikan
Tokyotatemono
Takaracho Bldg.
Tokyo Tatemono No.
3 Takaracho Bldg.
Nihonbashi TI Bldg.

2016

Tokyo Tatemono
Nihonbashi Bldg.
Nihonbashi First
Bldg.
Shin-gohukubashi
Bldg.
Tokyo Tatemono
Yaesu Bldg.

OtemachiFinancial City
North Tower

2009
1966
1971
2012
NihoNihombashi
Mitsukoshi Main
Store

2015
1994
1977
2011

NTA Nihonbashi Bldg. 1991
Tokyo Tatemono
Yaesu-sakuradori
Bldg.
Kyobashi YS
Bldg.

1974
Daimaru Tokyo
Department Store

1990

Empire Bldg.
Kyobashi Edogrand
Bldg.

2017

Fukuoka Bldg.
Tokyo Square
GardenTokyo Tatemono
Kyobashi Bldg.

1990

Tokyo Sta.

2016

FUNDES Suidobashi

3.25 billion yen

Acquired December 2016

FUNDES Ueno

3.8 billion yen

Acquired June 2019

NihoNihonbashi
Takashimaya
Department Store

2013
1981

■ Construction completion:

Up to and including 2000
■ 2009 - 2014
■ 2015 and thereafter

Yaesu
Book Center
Tokyo
Internatio
nal Forum

Kanematsu
Bldg.
Kanematsu
Bldg. Annex

owned properties□ Jointly(Tokyo Tatemono,JPR)■ Owned properties(JPR)■ Properties acquired by JPR

MaruzenBook StoreJR Keiyo Line
Yurakucho Mullion

Yurakucho
ItociaNote: As of the date of this material, JPR does not own any of these properties except for the portfolio assets and, with the exception of the assets to be acquired, has not engaged in specific negotiations with Tokyo Tatemono or others about
these properties nor does it have any plan to acquire them at the present time or guarantee future acquisition.

23

Financial Status

3-3. Financial Strategy

Build strong financial base through lengthening of maturity and flattening of
repayment amount and conservative LTV control
Debt Procurement Results in the Dec. ‘21 Fiscal Period(short-term loans excepted)
Beforerefinancing

Funding

Diversification Status of Repayment Dates
Long-term loans payable

ChangeShort-term loans payable

Average maturity

5.6 years

8.8 years+3.2 years

Average debt
interest rate

0.53%

0.52%

-0.01pt

200

40

150

Commitment limit

Early repayment of borrowing

100

30

130

Dec. ‘21

ChangeInterest-bearingdebt

196.5 billion

206.9 billion+10.4 billion

yen

yen

yen

LTV

40.6%

41.7%

+1.2 pt

Average maturity

4.8 years

4.6 years-0.2 years

Average debt
interest rate

0.73%

0.73%

±0.0 pt

Ratio of long-term,
fixed interest rate
debts

99.0%

94.2%

-4.8 pt

JCR

AA （stable）

130

70 80

109 100
40

118

102

90
50

71

90
60

35

30

0

(%)

Control, aiming for maximum LTV of 40-45%

43

40.8

S&P

A （stable）

10

Expansion of
acquisition capacity

19.0 billion yen

41

AA- （stable）

30

Change in LTV

Publicoffering

R&I

14（period）

45

Status of Rating
Newly acquiredin November
2021

60

85

105
80 80

50

50 30

20

50

Jun. ‘21

24.0 billion yen

To be smoothed out through long-term financing

80

Status of Interest-Bearing Debts

approx. 20 billion yen

Free cash flow

Investment corporation bonds（100 million yen）

46.0 billion yen

Assuming fundprocurement
through loans

40.6

39.5

42.9
41.7

40.6

Publicoffering

Jun '21

Dec '2139
Dec '19

Jun '20

Dec '2040.0
After initiatives such
'22
asJun
publicoffering（period）

1. ”Free cash flow” is the amount of cash and deposits which TRIM judges to be available after deduction of distribution payments and an amountequivalent to lease deposits received. It includes proceeds from the sale of properties already contracted to be sold.

24

3-3. Financial Strategy

Diverse Status of Lenders (as of December 31, 2021)

Diversifying fund procurement sources with a lender formation comprising

34 financial institutions and through issuance of investment corporation bonds（Breakdown of investment corporation bonds）
The Yamanashi Chuo Bank

1.0

Sumitomo Mitsui Trust Bank

（billion yen）

1.0

Name

Mitsui Sumitomo Insurance Company

1.0

7th series of bonds

4.5

Hiroshima Bank

1.0

18th series of bonds

2.0

19th series of bonds

5.0

21st series of bonds

4.0

22nd series of bonds

3.0

23rd series of bonds

3.0

24th series of bonds(Green Bonds)

5.0

25th series of bonds(Green Bonds)

6.0

26th series of bonds
27th series of bonds(Sustainability

3.0

Mizuho Bank, Ltd

Hyakugo Bank

1.0

Investment

Tokio Marine & Nichido Fire Insurance

1.0

corporation bonds

Chiba Bank

1.0

37.9

Daido Life Insurance Company

1.0

Daishi Hokuetsu Bank

1.0

The 77 Bank

1.0

MUFG Bank, Ltd.

Kiyo Bank

1.0

21.0

NTT FINANCE CORPORATION

1.0

Yamaguchi Bank

2.0

Hachijuni Bank

2.0

Nippon Life Insurance Company

2.0

12.5

Sompo Japan Insurance

2.0

Development Bank of Japan, Inc.

Iyo Bank

2.0

10.9

Chugoku Bank

3.0

Shinsei Bank,

Taiyo Life Insurance Company

3.0

Ltd. 10.0

Nishi-Nippon City Bank

4.0

Shinkumi Federation Bank

32.0
（Of which short term loan 8.0）

Interest-bearing
debt balance Sumitomo Mitsui Banking
206.9 billion yen
Corporation

Bonds)

28th series of bonds(Green Bonds)

Amount1.4
1.0（Status of commitment line）

LenderCreditlimit

Mizuho Bank, Ltd.

4.0
4.0

4.0

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Aozora Bank, Ltd

Sumitomo Life Insurance Company

4.0

Mizuho Trust & Banking Co, Ltd.

4.0

Meiji Yasuda Life Insurance Company

4.2

Aozora Bank, Ltd. 5.4

Shinkin Central Bank 7.0
Resona Bank 6.0（Of which short term loan 4.0）

The Bank of Fukuoka, Ltd. 6.0

Mizuho Trust & Banking Co.,The Norinchukin Bank 7.0
Ltd.

4.0
4.0

Resona Bank, Ltd

4.0

Total

24.0

7.0

25

3-4. Sustainability

Sustainability Initiatives to Date

Continue actively implementing sustainability initiatives, building on long-standing commitment to sustainability

2005-2012

2013

2014

2015

2016

Aug. 2005
Launched Tenant Satisfaction
Survey.

2017

Mar. 2019
Began issuing Sustainability Report.
Jul. 2019
Completed first issuance ofGreen Bonds.

Jan. 2006
Formulated brand strategy.
Sep. 2013
Achieved "Green Star" status forthe first time in GRESB Real
Estate Assessment.

JPR

Oct. 2006
Launched Best Performance Award.

2019

2018

Jun. 2018
Acquired CASBEE for Real Estate
Certification for the first time.
(Yakuin Business Garden)

Aug. 2011
Acquired DBJ Green Building Certification
for the first time. (Olinas Tower, JPR
Sendagaya Bldg.)

2020
Jul. 2020
Participated in CDP Climate Change
Program.

2021
May. 2021
Included in MSCI Japan ESG Select Leaders index.

Dec. 2020
Acquired BELS certification
for the first time.
(JPR Kojimachi Bldg.)

Aug. 2021
Set target of reducing CO2
emissions to net-zero.

Jan. 2021
Determined materiality.
Environment (E)•Portfolio greening•
Countering climate changeDec. 2021
Completed first issuance ofSustainability Bonds.

Society (S)•Improving tenant satisfaction with safety, security
and comfort•
Creating a rewarding workplace environmentJan. 2013
Established additional BCP
for epidemics.

TRIM

Dec. 2015
Launched Employee Satisfaction
Survey.

Apr. 2019
Established Sustainability
Committee.
May 2019
Became a signatory of PRI(Principles of Responsible
Investment).

May 2021
Declared support for TCFD.

Governance (G)•Strengthening corporate governance

Apr. 2017
Launched employee awards
program.
May 2017
Enacted Sustainability Policy.

Jan. 2021
Established a business unit dedicated tosustainability (Sustainability Group).

Jul. 2021
Enacted Human Rights
Policy.
Jul. 2021
Enacted Sustainable
Procurement Standards.

26

3-4. Susteinability

External Evaluations and International Initiatives

Sustainability is a top priority for JPR.
Received high external evaluations in recognition of steady implementation of sustainability
initiatives.
GRESB Real Estate Assessment
GRESB Rating
GRESB Public
Disclosure

Support for TCFD
5 Star▶

（three straightyeas）Statement of support in May 2021

A▶

（four straightyears）

Scenario analysis and disclosure offinancial impact

Green Star（eight straight years）

Inclusion in MSCI ESG Select Leaders Index

Signatory of PRI(Principles of
Responsible Investment)

DBJ Green Building
Certification

Became a signatory in May 2019

Certification 15 properties

Inclusion in MSCI ESG SelectLeaders Index in May 2021
MSCI ESG
Credit Rating▶

A

Participation in the CDP’s Climate Change program

CASBEE for Building Certification

BELS certification

Participation in the CDP’s Climate
Change program in July 2020

CDP Credit Rating▶

B

Certification 28 properties

Certification 2 properties

1. Properties with environmental certification are as of the end of Dec. 2021.

27

3-4. Sustainability

Environment

Expect to achieve 2030 target of "30% reduction in CO2 emissions intensity (compared to the 2017 level)"ahead of schedule
Step up initiatives to reduce CO2 emissions, aiming to achieve net-zero target
For achievement of net-zero target

2020 result and 2030 target••

2030 target is to "reduce CO2 emission intensity by 30% (compared to the 2017
level)."
Steadily implement initiatives to reduce CO2 emissions.
110
(%)
100

100.0
89.5

90

Introduction of
100% renewableenergy contracts

Use of LED/Moreefficient operation

87.7

80

•
•

Be quick to commit to target of net-zero emissions by 2050 and implement initiatives
to reduce emissions.
Explore effective methods based on regular reassessment of reduction measures thatare effective.
Current initiatives and future measures are as shown below.

Improvement of
CO2 emissions
factor

81.2
77.7

70

•

Pursuing electricity savings by switching
to LED lighting and other means
Switching to 100% renewable energy
contracts at wholly owned properties

70.0
72.4

60

Thoroughly implementing waste recycling

70.0
CO2 Emission

50
2017

2018

2019

2020

LED、… 排出係数… 再エネ…

Switching to renewable energy incommon areas and co-owned properties

Demanding that business partners pursue net-zero

2030 (Year)

Encouraging the use of recycled materials andwood materials
Introducing new technologies
such as storage batteries

Introduction of renewable energy sources•••

Switched to 100% renewable energy contracts at 22 wholly owned properties in 2022
Expect to achieve the 2030 target of "30% reduction in CO2 emissions intensity(compared with the 2017 level)" ahead of schedule
Continue actively introducing renewable energy sources in the future, with the aim of
reducing CO2 emissions
Properties using
renewable energy inDecember 2021

Properties using
renewable energy inJanuary 2022

Number of properties

1 property

22 properties

Estimated reduction
in CO2 emissions-349-9,482(t-CO2)

Switch completed at 23 out of 32 wholly-owned properties(Year)

Progress of switch to LED•

Used non-operating hours of tenants and move-in/move-out as opportunity to switch to LED
lighting and actively encouraged installation of LED lighting both in common areas andexclusively-owned areas.
Common areas

Exclusively owned
areas(Corridors)(Toilets and hot
water supply rooms)

Rate of progress

44.8%

91.3%

88.9%

Change fromprevious period+1.2pt+0.8pt+0.8pt* Lighting classed as tenant assets is excluded from the calculation of rate of progress.

28

3-4. Sustainability

Environment

Expect to achieve 2030 target of "environmental certification acquisition coverage rate of 80% or more" ahead ofschedule
Acquisition of environmental certification••

Shinjuku Center Bldg. waste to fuel demonstration experiment

Expect to achieve "environmental certification acquisition coverage rate of 80% ormore" (2030 target) this year ahead of schedulePursue the creation of a portfolio with even higher environmental performance,
including striving for higher levels of certification at buildings that have alreadyreceived certification<Trends in environmental certification acquisition rate (gross floor area basis)>
(%)

90
80

(Conceptual drawing of demonstration experiment)

71.4

60

60.1

50

74.3

65.5
Subcritical water
treatment system

53.4 54.4

40

34.0

Low molecular weight organic matter produced
through subcritical water treatment■ Future plans

20'18.12'19.6'19.12'20.6'20.12'21.6'21.12'22.6'22.12 (Period)(forecast) (forecast)

Waste recycling initiatives■ Introduction of waste management system••••

The aim of the experiment is to make "bio-coal" from organic
waste in collaboration with building tenants. The waste-tofuel process involves subcritical water treatment. The
electricity used in the subcritical water treatment canessentially be considered a renewable energy source and thetreatment also takes into consideration the environment tocontribute to decarbonization.

2030 target

70

30■ Overview of the demonstration experiment

Plan to introduce a waste management system at 12 properties this fiscal year, tomeet the needs of a recycling-oriented society
Seek to reduce the volume of waste generation in addition to improving the accuracyof waste data
Plan to put pressure on other owners of sectional ownership/co-owned properties toexpand introduction in the futureWork on sorting and reducing waste further in collaboration with tenants(Conceptual drawing of future plan)

Planning to consider rolling out a model forusing bio-coal made from organic waste (ormatter treated with subcritical water before
it is turned into bio-coal as raw material formethane fermentation) to fuel acogeneration system which generates
energy that will be converted into electricity
or steam and supplied to buildings.

* Subcritical water is superheated water under pressure attemperatures between the usual boiling point and the criticaltemperature and subcritical water treatment is technology
which uses subcritical water hydrolysis to reduce themolecular weight of organic material containing plastic whileat the same time disinfecting pathogenic organic matter andrendering it harmless.

(Cogeneration system)
Subcritical water
treatment
system29

3-4. Sustainability

SocialEnacted "Human Rights Policy" and "Sustainable Procurement Standards"

Measures to strengthen respect for human rights•

Strengthening initiatives for respect of human rights and supply chain management■ Human Rights Policy

Sustainability finance initiatives■ First issuance of Sustainability Bonds<Use of proceeds>

Amount

1.4 bn. yen

As a member of the Tokyo Tatemono Group, TRIM established a “Human
Rights Policy” based on the UN Guiding Principles on Business and Human
RightsIssue date

December 7, 2021

Maturity date

December 5, 2031

■ Sustainability Procurement Standards

Interest rate

0.42%

To fund refinancing of loans
necessary for the acquisitionof Otemachi Financial City
North Tower
サステナビリティ評価
Sustainable 1

Sustainability Procurement Standards were established due to the need toincorporate sustainable procurement across the entire supply chain■ Third issuance of Green Bonds

Initiative to improve management level
•
•
•

•

Implement the "JPR Best Performance Award" every year based on the results of
the Tenant Satisfaction Survey and the recommendations of the PMs
Awarded to outstanding building management companies as good examples forother properties
Awarded based on tenant satisfaction, therefore, serving as a strong incentive toimprove satisfaction
Outstanding initiatives of recipient buildings are shared with those in charge of otherbuildings with the aim of raising the overall level of the portfolio

JPR Best Performance Award 2021
JPR Sendagaya Bldg.
(Reason for award)
Always rated highly in Tenant Satisfaction Survey
Demonstrates excellent responsiveness to specificcircumstances of individual tenants

Amount

1.0 bn. yen

Issue date

December 7, 2021

Maturity date

December 5, 2036

Interest rate

0.67%

<Use of proceeds>

To fund refinancing of loans
necessary for the acquisitionof Rise Arena Bldg.
(additional ownership)

COVID-19 infection prevention measures by TRIM
• Provision of workplace vaccinations to help central
and local governments improve vaccination rate
• Daily health check• Encouragement of staggered commuting,telecommuting and web meetings (loan of PCs andmonitors)• Distribution of masks, provision of disinfectant
solution and enforcement of social distancing• Installation of acrylic partitions (meeting rooms)

30

3-4. Sustainability

GovernanceWelcomed Outside Advisor to Sustainability Committee, to further strengthen initiatives through the inclusion ofa specialist, objective viewpoint
Sustainability Promotion Framework
Welcomed an expert with extensive knowledge of sustainability to the Sustainability
Committee from January 2022, to incorporate a specialist, objective viewpoint and tofurther strengthen initiatives
Sustainability Committee

Mainly engages in the deliberation on basic policies, monitoring
activities, and the establishment of system for promoting
sustainability

Members President & CEO (chairperson), management, Outside Advisor
Frequency of meetings Meets four times a year, in principle
Activities
Reporting process
Sustainability Secretariat

Sets targets, monitors and evaluates activities, and raises
awareness among officers and employees
Reports details of key initiatives to JPR's Board of Directors andto TRIM's Board of Directors
Subordinate organization of Sustainability Committee

Working Group

Organization for promotion of initiatives to address eachmateriality

Sustainability Promotion GroupOperation of Sustainability Committee and promotion of
initiatives to address each materiality

Diagram of Sustainability Framework

TRIM’s Corporate Governance••Elected Supervising Officer who isfamiliar with urban planning and has
extensive knowledge of sustainability
in September 2021
Bolstered supervisory function,
enabling supervision based on amuch wider perspective than before,
through the addition of members

Position
Executive
OfficerName
Yoshihiro Jozaki
Masato Denawa

Partner Attorney, Spring Partners

Supervising Nobuhisa Kusanagi
Officer
Konomi Ikebe(newly appointed)

Board of Directors
Sustainability Committee Members:
President (chair) and GMs of divisions
and offices

Deliberation

Sustainability Secretariat

Working GroupLeaderWorking GroupLeaderWorking GroupLeaderWorking GroupWorking GroupProfessor, Graduate School of Horticulture,
Chiba University■Asset Management Fee

Employing a management fee system linked to unitholders’ interests

Management fee 1

Generaloperation/
coordination(Asset-linked fee)Management fee 2(Revenue-linked fee)Management fee 3(Cash distribution-linked
fee)Working Group

Group Representative Partner of Gyosei Certified
Public Tax & Accountants' Co.
Representative Partner of Nobuhisa Kusanagi
OfficeSupervising officers may be directors of corporations other than those indicated above, buthave no conflict of interest with JPR at those.

Item

Sustainability Promotion Group

Current Assignment
President and CEO
Tokyo Realty Investment Management, Inc.

Implementation/Reporting/
Proposals

Remuneration（Dec. ’21）

Share

Total acquisition price×0.05％

232 million yen

25.1%

Total revenue×1.2%

196 million yen

21.2%

Distributable base amount
×3.8%×Rate of fluctuation of
distributable base amount per unit

320 million yen

34.5%

Property value×0.5%

178 million yen

19.2%

Calculation of Compensation

Management fees 4/5(Acquisition/Mergerfee)(Sale fee)

31

JAPAN PRIME REALTY INVESTMENT CORPORATION

4. Financial Results and Forecasts of Financial Results

32

4. Financial Results and Operating
Forecasts

Overview of Financial Results for the Dec. ‘21 Fiscal Period (period-on-period
comparison)

Results of the Dec. ‘21 fiscal period : DPU: 7,550 yen (down 107 yen period-on-period)
Progress was made with leasing activities towards the end of the year, partially offsetting the impact of delays inleasing activities caused by the effects of COVID-19
Jun. '21
PeriodDec. '21
PeriodChangeNon-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Transferred from reserve
DPU (yen) (per unit)

17,305
16,521
783
8,515
7,499
1,016
8,789
72
740
8,121
8,120
783
7,657

18,253
16,382
1,870
9,626
7,731
856
1,039
8,626
19
752
7,893
7,892
659
7,550

+948
-138
+1,086 ⑤+1,111+231+856 ⑥
+23
-162
-53
+11
-227
-227
-124
-107

Number of units outstanding

958,250

958,250-

Item
Operating revenue
Rental revenue
Gain on sale of property

Operating expense
Expenses related to rent business
Revenueloss on sale of property
and profit
General and adminisutrative expenses(millionyen)
Operating income

Item① ［Rent and common charge］ Decreased, reflecting delays to leasing activities caused by the effects of
COVID-19② ［Incidental income］ Increased mainly due to seasonal factors③ ［Cancellation penalty, etc. and Income equivalent to expense for restoration］ Decreased mainly in theabsence of income recorded the previous period④ ［Utilities expense］ Increased mainly due to seasonal factors and the balance of utilities expenses
deteriorated owing to a rise in fuel adjustment charges (-25 million yen)

⑤ ［Gain on sale of property］ Recorded gain on sale mainly as a result of the transfer of JPR Umeda Loft
Bldg. (40% ownership interest)
Part of the gain on sale was reserved internally to stabilize future distributions⑥ ［Loss on sale of property］ Recorded a loss on sale as a result of the transfer of Tokyo Tatemono
Honmachi Bldg.

Rental revenue
Rental revenue
Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Jun. '21
PeriodDec. '21
PeriodChange16,521
15,601
13,431
1,797
372
919
676
66
133
42
7,499
630
714
2,436
26
504
302
588
2,100
196
11,121
5.1%
9,021
4.1%
98.2%

16,382
15,475
13,296
1,802
376
907
787
10
56
52
7,731
628
849
2,422
27
532
289
612
2,127
240
10,779
4.8%
8,651
3.9%
96.9%

-138
-126
-135
+4
+4
-12
+110
-56
-77
+10
+231
-1
+135
-13
+0
+28
-12
+23
+27
+43
-342
-0.3pt-370-0.2pt-1.3ptReplaced
properties※1

Existing
properties※2

-11
-9
-6
-3
-1
-1
-0
+0
+4
-3
-2
-6
-0
-0
-0
+11
-0
+7
-16

-127
-116
-128
+4
+7
-10
+112
-55
-77
+10
+227
+1
+138
-7
+0
+28
-11
+12
+28
+36
-326

-15

-354

①

②
③
③'

④

*1 Increase or decrease as a result of replacement of the following assets is calculated.
Jun. ‘21 period: Transfer of JPR Hakata Bldg. (65%)
Dec. '21 period: Additional acquisition of Rise Arena Bldg.
*2 Increase or decrease for existing properties, excluding the above, is calculated (the major factors
behind the increase/decrease for existing properties are described in ① to ④).

33

4. Financial Results and Operating
Forecasts

Overview of Financial Results for the Dec. ‘21 Fiscal Period (period-on-period
comparison)

Total assets increased by 11.2 billion yen due to property acquisitions
Item
Current Asset
Cash and deposits (including trust)
Other current asset

Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets

Deferred assets
Investment corporaton bond issuance costs

Investment unit issuance expenses

BalanceSheet(millionyen)

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans payable

Other current liabilities

Noncurrent liabilities
Long-term loans payable
Investment corporation bonds
Tenant leasehold and security deposits

Total liabilities
Unitholders' capital
SurplusReserve for reduction entry

Unappropriated retained earnings

Total net assets

Jun. 30 '21
PeriodDec. 31 '21
Period44,01743,602414
440,111427,419
11,804
886
195
171
23
484,323
29,5272,000
20,5007,027
197,702138,500
35,50023,702
227,229
247,860
9,233
1,103
8,129
257,093

36,35735,547809
459,046446,212
11,804
1,030
211
195
16
495,615
37,711
12,00018,5007,211
200,254
138,500
37,90023,854
237,965
247,860
9,788
1,887
7,901
257,649

Unitholder'sequity ratio

52.0%

Change-7,659-8,055+395+18,935+18,792
-0
+143
+16
+23
-7
+11,291+8,184+10,000-2,000+184+2,552+2,400+152+10,736
+555
+783
-228
+555

Increase or decrease in cash and deposits
Item

ChangeNet cash provided by operating activities+18,793

Income before income taxes+7,893

Depreciation and amortization+2,128+8,772Other, net

Net cash provided by investing activities
Purchase of property, plant and equipment-29,876-29,913+36

Other, net

Net cash provided by financing activities+3,027

Proceeds from lisbilities+24,764

Repayment of liabilities-14,400-7,337

Dividends paid

Total cash and deposits-8,055

Increase or decrease in noncurrent assets
Item

ChangeSold properties+19,332

Capital expenditures+1,601

Depreciation-2,127

OthersTotal noncurrent assets+129+18,935

Increase or decrease in liabilities
Item

Balance at start of
New procurement
periodRepayment/
redemption

Balance at end of
periodChangeShort-term loans payable

2,000

14,4004,400

12,000Long-term loans payable

159,000

8,000

10,000157,000-2,000Investment corporation bonds

35,5002,400-

37,900+2,400196,500

24,80014,400206,900+10,400

Total liabilities+10,000

34

4. Financial Results andOverview of Financial Results for the Dec. ’21 Fiscal Period (compared with forecast)

Operating Forecasts

Results of the Dec. ‘21 fiscal period: DPU was in line with the forecast
Secured DPU of 7,550 yen as forecast, without the reversal of retained earnings (reserve for reduction entry) that was initiallyplanned, through the implementation of strategic asset replacement and partial capitalization of gain on sale

Item
Operating revenue
Rental revenue
Gain on sale of property
Operating expense
Expenses related to rent business
Revenueloss on sale of property
and profit
Selling, general and adminisutrative expenses(millionyen)
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Transferred from reserve
Reserve(million yen) Reversal amount of reserve

DPU (yen) (per unit)

Dec. '21
PeriodDec. '21
Period（forecast）（actual）

16,228
16,228
8,514
7,604
909
7,713
3
753
6,964
6,963
272

18,253
16,382
1,870
9,626
7,731
856
1,039
8,626
19
752
7,893
7,892
659
-

7,550

7,550

Change+2,025+154+1,870+1,112
+126
+856
+129
+913
+15
-0
+929
+929
+659
-272

Item
Rental revenue
Rental revenue
Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income③

Cancellation penalty, etc.
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums④

Repairs and maintenance+0

Property management fees

Number of units outstanding (unit)

958,250

958,250

Management association accounts-

Depreciation

Rental revenue① ［Rent and common charge］ Reflects progress with leasing activities in addition to lower than initiallyanticipated amount for temporary rent reduction (in relation to COVID-19)(Amount for temporary rent reduction: initial forecast of 68 million yen →actual result of 47 million yen)

Expenses related to rent business② ［Repairs and maintenance］ Increased largely due to the implementation of construction work to restore
properties to their original condition

Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Dec. '21
Period（forecast）

Dec. '21
Period（actual）

Change16,22815,377
13,203
1,802
372
850
807
43
7,604
628
846
2,422
26
460
285
600
2,107
225
10,730
4.9%
8,623
3.9%
96.8%

16,382
15,475
13,296
1,802
376
907
787
10
56
52
7,731
628
849
2,422
27
532
289
612
2,127
240
10,779
4.8%
8,651
3.9%
96.9%

+154
+97
+93
-0
+4
+57
-19
+10
+56
+9
+126
+0
+3
+0
+0
+71
+4
+11
+20
+14
+48
-0.1pt+27- pt+0.1ptAcquiredproperties※1

Existing
properties※2

+43
+42
+41
+1
+0
+0
+0
+32
+0
+0
+0
+0
+0
+11
+11
+7
+22

+110
+54
+51
-0
+3
+56
-20
+10
+56
+9
+94
+0
+2
+0
+0
+71
+3
+0
+9
+7
+25

+11

+16

①

②

Selling, general and administrative expenses③ ［General and administrative expenses］ Asset management fees chiefly increased largely due to impact ofproperty transfers

Reserve for reduction entry④ ［Reversal of reserve for reduction entry］ Retained earnings, which were expected to be reversed, were
preserved through the utilization of gain on sale

*1 Increase or decrease as a result of replacement of the following assets is calculated.
Dec. '21 period: Additional acquisition of Rise Arena Bldg.
*2 Increase or decrease for existing properties, excluding the above, is calculated (the major
factors behind the increase/decrease for existing properties are described in ① to ④).

35

4. Financial Results and Operating
Forecasts

Forecasts of Financial Results for the Jun. ‘22 Fiscal Period (comparedwith Dec. ‘21 period)

Forecast of the Jun. ‘22 fiscal period, DPU: 7,750 yen (up 200 yen from actual result for the Dec. ‘21 fiscal period)
Rental income is expected to recover substantially mainly due to the contribution of acquired properties
DPU is expected to be a record-equaling 7,750 yen thanks to effective use of gain on sale
Item

Dec. '21
PeriodJun. '22
PeriodItem

ChangeDec. '21
Period18,253
16,382
1,870
9,626
7,731
856
1,039
8,626
19
752
7,893
7,892
659
7,550

Rental revenue
Gain on sale of property
Operating expense
Expenses related to rent business

Revenue andprofit(million yen)loss on sale of property
General and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve(millionyen)

DPU (yen)Transferred from reserve(per unit)

Number of units outstanding

958,250

18,167
16,831
1,336
8,920
7,851
1,068
9,247
57
775
8,529
8,528
799
7,750
997,178

-86
+448
-534
-706
+120
-856
+29
+620
+38
+23
+635
+635
+140
+200

Change（forecast）（forecast）
Operating revenue

Jun. '22
PeriodRental revenue
Rental revenue
Rents and common charge⑤

Land rent
Other fixed income

Other rental revenue
Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums⑤'

Repairs and maintenance
Property management fees
Management association accounts+38,928

Depreciation

Rental revenue

Other expenses related to rent business① ［Rent and common charge］ Although the occupancy rate is likely to recover as a result of progress inleasing activities, given factors such as rent-free periods, a full contribution torental revenue is not expected until the next fiscal period or later.
② ［Incidental income］
Likely to decrease mainly due to seasonal factors

NOI
NOI yield (book value)
Rental income-real estate

Expenses related to rent business③ ［Utilities expense］ Likely to decrease mainly due to seasonal factors but a rise in fuel adjustment charges
is anticipated
The balance of utilities is expected to deteriorate due to rising fuel adjustment charges(-66 million yen)
④ ［Depreciation］
The facilities of existing properties will be fully depreciatedAfter-depreciation (book value)
Occupancy rate based on cncluded contract(period average)*1

Gain on sale of property⑤ ［Gain on sale of property］ A gain on sale is expected to be recorded due to the transfer of JPR Umeda Loft
Bldg. (second transfer, 30% ownership interest)
Part of the gain on sale will be reserved internally to stabilize future
distributions*2

16,382
15,475
13,296
1,802
376
907
787
10
56
52
7,731
628
849
2,422
27
532
289
612
2,127
240
10,779
4.8%
8,651
3.9%
96.9%

16,831
16,03913,852
1,802
385
792
733
0
57
7,851
701
866
2,526
28
440
305
638
2,045
299
11,025
4.8%
8,979
3.9%
97.5%

+448
+564
+555
+0
+8
-115
-53
-9
-56
+4
+120
+72
+16
+103
+1
-92
+15
+25
-82
+59
+246
- pt
+328
- pt
+0.6ptReplaced *1
properties

Existing *2
properties

+618
+570
+558
+12
+47
+36
+11
+285
+65
+40
+62
+1
-4
+20
+21
+44
+34
+376

-169
-6
-2
+0
-3
-163
-90
-9
-56
-7
-165
+7
-23
+40
-0
-87
-5
+4
-126
+24
-130

+332

-4

Increase or decrease as a result of replacement of the following assets is calculated.
Dec. '21 period: Additional acquisition of Rise Arena Bldg., acquisition of Grand Front Osaka, transfer ofTokyo Tatemono Honmachi Bldg., transfer of JPR Umeda Loft Bldg. (first transfer, 40% ownership interest)
Jun. '22 period: Acquisition of Tokyo Tatemono Higashi Shibuya Bldg., transfer of JPR Umeda Loft Bldg.
(second transfer, 30% ownership interest)
Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ④).

①

②

③

④

36

4. Financial Results and Operating
Forecasts

Forecasts of Financial Results for the Dec. ‘22 Fiscal Period (comparedwith forecast Jun. ‘22 period)

Forecast of the Dec. ‘22 fiscal period, DPU: 7,750 yen (the same as the forecast for the Jun. ‘22 fiscal period)
Recovery of occupancy is expected to outweigh the absence of revenue from the transferred properties
DPU is expected to be a record-equaling 7,750 yen through the use of gain on sale, as in the preceding period
Jun. '22
PeriodDec. '22
Period（forecast）（forecast）

Transferred from reserve
DPU (yen) (per unit)

18,167
16,831
1,336
8,920
7,851
1,068
9,247
57
775
8,529
8,528
799
7,750

18,386
17,044
1,341
9,010
7,948
1,061
9,376
3
800
8,579
8,579
850
7,750

+219
+213
+5
+89
+96
-6
+129
-54
+24
+50
+50
+50
-

Number of units outstanding

997,178

997,178-

Item
Operating revenue
Rental revenue
Gain on sale of property
Operating expense
Revenue andprofit(million yen)

Expenses related to rent business
General and administrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income

Reserve (million yen)

ChangeItem
Rental revenue
Rental revenue
Rents and common charge④

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration⑤

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums④'

Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related torent business

Rental revenue① ［Rent and common charge］ Likely to increase considerably due to recovery of occupancy② ［Incidental income］ Likely to increase mainly due to seasonal factors

NOI

Expenses related to rent business

Rental income-real estate③ ［Utilities expense］ Likely to increase due mainly to seasonal factors, and balance of utility expenses is
expected to improve slightly

NOI yield (book value)

After-depreciation (book value)

Gain and loss on sale of property*1④ ［Gain on sale of property］ A gain on sale is expected to be recorded due to the transfer of JPR Umeda Loft
Bldg. (third and final transfer, 30% ownership interest)
Part of the gain on sale will be reserved internally to stabilize future
distributions*2'Jun. '22
Period（forecast）

Dec. '22
Period（forecast）

Change16,831
16,03913,852
1,802
385
792
733
0
57
7,851
701
866
2,526
28
440
305
638
2,045
299
11,025
4.8%
8,979
3.9%

17,044
16,14913,959
1,802
387
895
846
49
7,948
708
962
2,509
28
439
314
641
2,060
282
11,157
4.8%
9,096
3.9%

+213
+109
+107
+2
+103
+112
-0
-7
+96
+6
+96
-16
+0
-0
+8
+3
+15
-17
+132
- pt
+116
- pt

Replaced
properties※1

Existing
properties※2

-54
-58
-57
-0
+3
+3
-4
+2
+3
-9
-0
+0
+0
-12
+10
-61

+267
+167
+165
+2
+99
+108
-0
-7
+101
+4
+92
-6
+0
-1
+8
+3
+27
-27
+193

-49

+166

①

②

③

Increase or decrease as a result of replacement of the following assets is calculated.
Jun. '22 period: Acquisition of Tokyo Tatemono Higashi Shibuya Bldg., transfer of JPR Umeda Loft Bldg.
(second transfer, 30% ownership interest)
Dec. '22 period: Transfer of JPR Umeda Loft Bldg. (third and final transfer, 30% ownership interest)
Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ④).

Non-operating income and expense⑤ ［Non-operating income］

Likely to decrease in the absence of settlement on management associationaccounts37

4. Financial Results and Operating
Forecasts

Item
Operating revenue

Change in Rental Business Profits and Gain or loss on the sale ofproperties

Dec. '20 Period

16,714
Rental revenue (fixed income)
15,788Rents and common charge
13,616
Land rent
1,793
Other fixed income
378
Other rental revenue (variable income)926
incidental income
833
Cancellation penalty, etc.
15
37
Other variable income
40
Expenses related to rent business (excluding depreciation)
5,526
Rental businessOutsourcing fees
630
profits
Utilities expenses
841
Property and other taxes
2,387(million yen)
Insurance premiums
26
Repairs and maintenance558
Property management fees
306
Management association accounts
585
Other expenses related to rent business
190
NOI
11,188Depreciation
2,085
Expenses related to rent business 7,611
Rental income-real estate（a）
9,103
Capital expenditures
1,654
NCF
9,534
Gain on sale of real estate（b）
414
Gain or loss on sale ofproperties (million yen)
Loss on sale of real estate（c）
Rental income-real estate, etc. (million yen, a+b-c）
9,518

Jun. '21 Period

Change

2.1%
0.7%
0.7%
0.5%
34.5%
34.4%

Income ecquivalent to expense for restoration to original condition

2.2%
2.4%
18.0%
1.2%
-7.3%

2.1%
2.8%
2.4%
2.0%
19.8%
-0.4%

6.6%

Dec. '21 Period

Change16,521
15,601
13,431
1,797
372
919
676
66
133
42
5,399
630
714
2,436
26
504
302
588
196
11,121
2,100
7,499
9,021
1,370
9,751
783
9,805

-1.2%
-1.2%
-1.4%
0.3%
-0.7%
-18.8%-2.3%
0.1%-15.1%
2.0%
-9.7%

-0.6%
0.7%
-1.5%
-0.9%
-17.2%
2.3%

3.0%

16,382
15,475
13,296
1,802
376
907
787
10
56
52
5,603
628
849
2,422
27
532
289
612
240
10,779
2,127
7,731
8,651
1,601
9,177
1,870
856
9,665

Jun. '22 Period

Dec. '22 Period

Change（forecast）

Change（forecast）

Change

-0.8%
-0.8%
-1.0%
0.3%

16,831
16,03913,852
1,802
385
792
733
0
57
5,806
701
866
2,526
28
440
305
638
299
11,025
2,045
7,851
8,979
1,391
9,633
1,336
10,315

2.7%
3.6%
4.2%
0.0%

17,044
16,14913,959
1,802
387
895
846
49
5,887
708
962
2,509
28
439
314
641
282
11,157
2,060
7,948
9,096
1,755
9,401
1,341
10,438

1.3%
0.7%
0.8%
0.0%

-1.4%
16.4%

3.8%
-0.3%
19.0%
-0.5%
5.6%

-3.1%
1.3%
3.1%
-4.1%
16.9%
-5.9%

-1.4%

-12.7%
-6.8%

3.6%
11.6%
2.0%
4.3%
-17.3%

2.3%
-3.9%
1.6%
3.8%
-13.1%
5.0%

6.7%

13.1%
15.3%

1.4%
0.9%
11.1%
-0.6%
-0.2%

1.2%
0.7%
1.2%
1.3%
26.2%
-2.4%

1.2%

38

4. Financial Results and Operating

Changein Rental Business Revenue
主要項目の変動状況

Forecasts

Rental revenue for the Jun. ‘22 period is expected to rise approx. 555 million yen (period-on-period)
Rental revenue for the Dec. ‘22 period is expected to rise approx. 107 million yen (period-on-period)

Rent revenue (factor for period-on-period changes)

Others-6

15,47516,039Acquisition& sale(million yen)

16,149-57+29

OthersMove-outs

Acquisition& sale

-516

Move
-ins

Move
-outs

+56

+494

+2

+8

Revisions,etc.

Acquisition& sale-589

Revisions,etc.

15,601

+404
Move
-ins

+558

-472

Revisions,etc.

Rents andcommon charge +555

Rents andcommon charge -135

+608

Move
-outs

Rents andcommon charge +107

Minus item

Move
-ins

Plus item

OthersRent revenue

acquisition+41
Sale -99+19+8Acquisition
Acquisition+41
Sale -48
Jun. ‘21

Dec. ’21 Period+807
Sale -249

Jun. ’22 Period(forecast)

Dec. ’22 Period(forecast)

39

JAPAN PRIME REALTY INVESTMENT CORPORATION

5. Appendix

40

5. Appendix

Fund Summary
Jun. 2021 Period

Dec. 2021 Period

Jun. 2019 Period

Dec. 2019 Period

Jun. 2020 Period

Dec. 2020 Period(book value)

40.9%

40.8%

39.5%

40.6%

40.6%

41.7%

(appraisal value)

33.9%

32.9%

32.2%

33.2%

33.1%

33.8%

(acquisition value)

4.8%

4.7%

4.9%

4.9%

4.8%

4.6%

(book value)

5.1%

5.0%

5.2%

5.2%

5.1%

4.8%

(appraisal value)

4.1%

4.0%

4.1%

4.1%

4.1%

3.8%

Afterdepreciationyield(acquisition value)

3.9%

3.8%

4.0%

4.0%

3.9%

3.7%

(book value)

4.1%

4.1%

4.2%

4.2%

4.1%

3.9%

(appraisal value)

3.3%

3.2%

3.4%

3.4%

3.3%

3.1%

Implied cap
rate(NOI yield)

3.3%

3.4%

4.6%

4.3%

3.6%

3.7%

(After-depreciation yield)

2.7%

2.7%

3.7%

3.5%

2.9%

3.0%

FFO

8,776 million yen

8,888 million yen

9,341 million yen

9,510 million yen

9,436 million yen

9,006 million yen

AFFO

LTV

NOI yield

7,451 million yen

7,305 million yen

7,961 million yen

7,855 million yen

8,066 million yen

7,404 million yen

FFO per unit

9,508 yen

9,630 yen

9,748 yen

9,924 yen

9,847 yen

9,398 yenEPU

7,818 yen

7,491 yen

7,593 yen

8,181 yen

8,474 yen

8,236 yen

Cash distribution per unit

7,380 yen

7,493 yen

7,595 yen

7,750 yen

7,657 yen

7,550 yen

3.0%

3.1%

4.6%

4.5%

3.4%

3.7%

Dividend yield
ROE

6.0%

5.8%

5.7%

6.1%

6.3%

6.1%

746 yen

746 yen719 yen

1,152 yen

1,969 yen

2,657 yen

Net asset per unit

259,118 yen

259,230 yen

266,984 yen

267,570 yen

268,295 yen

268,875 yen

NAV per unit
Investment unit price353,795 yen

368,917 yen

371,053 yen

372,725 yen

375,544 yen

383,368 yen

490,500 yen

488,000 yen

329,000 yen

346,500 yen

444,000 yen

403,500 yen

NAV multiple

1.4 times

1.3 times

0.9 times

0.9 times

1.2 times

1.1 times

PBR

1.9 times

1.9 times

1.2 times

1.3 times

1.7 times

1.5 times

PER

31.4 times

32.6 times

21.7 times

21.2 times

26.2 times

24.5 times

FFO multiple

25.8 times

25.3 times

16.9 times

17.5 times

22.5 times

21.5 times

52.9%

52.8%

54.1%

52.9%

53.1%

52.0%

（FFO）

77.6%

77.8%

77.9%

78.1%

77.8%

80.3%

（AFFO）

91.4%

94.7%

91.4%

94.5%

91.0%

97.7%

Reserve for reduction entry per unit

(immediately before the ex-right date)

Unitholder’s equity ratio
Pay out ratio

1. [after-depreciation] Implied cap rate = [after depreciation] NOI (annualized, forecast
for the next fiscal period x 2) / (market capitalization + interest-bearing debts – cash
and deposits + tenant leasehold and security deposits)
2. FFO = Net income + depreciation – gain on loss on sale of real estate properties(including loss on retirement of non-current assets)
3. AFFO = FFO – capital expenditures
4. EPU = Net income / number of units outstanding (end of period)

5. Dividend yield = Cash distribution per unit (annualized, most recent result x 2) /investment unit price6. ROE (return on equity) ＝ Net income (annualized, most recent result x 2) / net
assets
7. NAV per unit = (Net assets + unrealized gains or losses – total cash distributions) /number of units outstanding (end of period)
8. NAV multiple = Investment unit price / NAV per unit
9. PBR (price book-value ratio) = Investment unit price / net assets per unit

10.
11.
12.

PER (price earnings ratio) = Investment unit price / EPU (annualized, most recent result x 2)
FFO multiple = Investment unit price / FFO per unit (annualized, most recent result x 2)
Unitholder’s equity ratio = Net assets + total assets

13.
14.
15.

FFO payout ratio = Total cash distributions / FFO
AFFO payout ratio = Total cash distributions / AFFO
Reserve for reduction entry indicates the figure calculated by adding or subtracting the amounts brought
forward or reversed in the relevant fiscal period to or from the balance at the end of the fiscal period.

41

5. Appendix

Portfolio■ Asset Size (based on acquisition price, 100million yen）, Occupancy rate (%)
Office properties
in Other Cities

Office properties
in Tokyo

95.2

94.0 93.8

92.6 93.1

94.3 94.9

96.1

97.7

98.3 99.0 98.7

Occupancy rate

Occupancy
稼働率 rate

Retail properties
98.0

97.0 96.2 96.4

（average）

96.1
93.6 94.0

95.0 94.8 94.4 95.6

3,809

2,751 2,806

1,636
1,257
922

1,796

1,976 2,026

2,092

2,224

2,994

3,106

3,312

3,919 3,986

96.9 97.0 97.2 97.5 97.4

97.8 98.3 98.5 98.4 98.2

4,047 4,047 4,055 4,095 4,103 4,103

4,214

99.2 99.2 99.5 99.6 99.4

4,350 4,350 4,350 4,350 4,395 4,395

4,571

4,675

98.2

96.7%

96.9

4,656 4,848

Breakdown by areaand by asset class(as of Dec. 31, 2021)

3,415 3,415 3,449

Office properties inTokyo

2,453 2,519

326.2 billion yen
Office properties in
Other Cities

1,396

59.0 billion yen

945

Retail properties

99.5 billion yen
120
110
.0
100
90.
0
80.
70.
0
60.
0
50.
40. 0
30.
20.
10.
0
0.0

1

2
'02

3

4
'03

5

6

7

'04

8

9

'05

10
'06

11

12

13

'07

14
'08

15

16

17

'09

18
'10

19

20
'11

21

22

23

'12

24
'13

25

26

27

'14

28
'15

29

30
'16

31

32

33

'17

34
'18

35

36

37

'19

38
'20

39

40 (period)'21 (year)■ Every Kind of Ratio
Ratio by Asset Class

Ratio by Area

Ratio by Asset Size

(Ratio of Acquisition Price)(Ratio of Acquisition Price)(Office Properties, Ratio of Acquisition Price)

Ratio by Number of
Minutes Walk from
Nearest Station

Ratio by Contract Type(Office Properties, Area Ratio)（Ratio of Acquisition Price)

Medium-sized

Retailproperties
20.5%(3,000 m2 to less than
10,000 m2)

Other Cities
16.5

27.0%

%

Portfolio management
standards
70 - 90%
for office properties

Portfolio management
standards

Officeproperties
79.5%

Greater
Tokyo
30.5%

Very large(30,000 m2 or more)

53.2%

Within5-10 minutes Directly linked
16.6%
7.5%
Within3-5 minutes
18.2%

80 - 90% for Tokyo

Central
Tokyo
53.0%

Large
(10,000 m2 to less than
30,000 m2)

19.8%

Within
1-3 minutes
27.8%

Within
1 minute
29.9%

Fixed-termlease contract

14.5%

Ordinary
lease
contract

85.5%

42

Diversification of Tenants (as of Dec 31, 2021)

5. Appendix■ Ratio of Tenant Occupancy■ 20 Largest Tenants (by property; based on end tenants)• The number of office tenants other than the sponsors, etc. withtenant occupancy of 1% or more is only 2 (combined occupancy:2.1%) (excluding property comprising land with leasehold interest).

Category• Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenants with
1% or more

25.9%

Other
tenants with 2.1%
1% or more

Less than 1%
70.4%

Sponsors, etc.
with 1% or more
(1 company)■ Ratio by Tenant’s Industry

Other tenants with
1% or more
(2 companies)(Office Properties, Area Ratio)
Transportation

Occupying property

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.3

Seiyu GK

Tanashi ASTA

31,121.71

6.4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.1

JPR Umeda Loft Bldg.

11,152.18

2.3

9,558.51

2.0

8,076.85

1.7

Retail tenants with The LOFT, Co., Ltd.
1% or more
Olympic Group Corporation(8 companies)

Sponsors, etc. with
1.6% 1% or more

Ratio of

Leased space occupancy

Tenant(No. of tenants)

(㎡)

(%)

Tower Records Japan Inc.

Musashiurawa Shopping
SquareJPR Shibuya Tower Records
Bldg.

A company

Cupo-la Main Bldg.

5,963.00

1.2

B companyMusashiurawa Shopping Square

5,285.40

1.1

Tokyo Prime Stage Inc.

The Otemachi Tower(land with Leasehold Interest

7,875.50

1.6

C company

Olinas Tower

5,263.77

1.1

D company

JPR Nagoya Fusimi Bldg.

4,904.64

1.0

E company

Yakuin Business Garden

4,719.50

1.0

F company

Sompo Japan Sendai Bldg.

4,392.04

0.9

G company

Shinjuku Square Tower

4,242.48

0.9

H company

Gotanda First Bldg.

4,234.29

0.9

I company

Oval Court Ohsaki Mark West4,088.44

0.8

J company

Niigata Ekinan Center Bldg.

4,078.97

0.8

K company

Omiya Prime East

4,005.05

0.8

L company

MS Shibaura Bldg.

3,922.74

0.8

M company

Olinas Tower

3,544.12

0.7

Medical and Welfare

3.3%

PublicServices

1.5%

Other

0.9%

4.0%

Construction

Services

7.3%

25.2%

Real Estate

7.6%

Less than 1%(1,123 companies)

Wholesale andRetailInformation andCommunications

10.7%

16.0%

Manufacturing

11.3%

Finance andInsurance

12.2%

1.

Figures exclude GRAND FRONT OSAKA.

43

Move-Ins and Move-Outs of Tenants (as of Dec 31, 2021)

5. Appendix■ Breakdown and Changes in Move-Ins and Move-Outs(Move-ins)‐(move-out)(Move-in/move-out spaces by area and asset class: m2)

Move-Ins
Office properties inCentral Tokyo
Office properties inGreater Tokyo
Office properties in
Other Cities

4,461
3,870
3,029

Retail properties
Total

886
12,247

Move-Outs

Net
Increase/Decrease-6,989-2,527-3,694-2,277751-1,044-14,006

16%

New

Downscaling Costestablishment

reduction

or expansion

12%
Consolidation

Move-ins
49

2%
Better location or

59%

10%

Downscaling
Cost reduction
62%

Kanematsu Bldg.

-401

-803

402

Shin-Kojimachi Bldg.

377

-111

488

JPR Ichigaya Bldg.

-388-1,105

717

Shinjuku Square Tower -1,229-2,294

1,065

-203

-461

258

-155

-358

203

Shinagawa Canal Bldg.

28

-314

342

JPR Harajuku Bldg.

545

0

545

Science Plaza-Yonbancho Plaza

-84

-84

0

Shibadaimon Center Bldg.

0

-412

412

Tokyo Square Garden-1,7580-30

30JPR Kojimachi Bldg. -1,017-1,0170

JPR Ginza Namiki-dori Bldg.

-432

-432

FUNDES Suidobashi

175

0

175

Arca East

0

-482

482
182

（㎡）

0

JPR Chiba Bldg.

-120

-302

JPR Yokohama Nihon Odori Bldg.

75

0

75

Shinyokohama 2nd Center Bldg.

-356

-570

214

Kawaguchi Center Bldg.

142

-237

379

JPR Ueno East Bldg.

0

-545

Rise Arena Bldg.

1,174

0

Olinas Tower-400-1,089689

JPR Yokohama Bldg.

-78

-163

85

Sencity Bldg.

-261

-307

46

Kawasaki Dice Bldg.

100

-612

712

Consolidation Nigata Ekinan Center Bidg.
10%
JPR Naha Bldg.

79

0

79

-1

-106

105

Sompo Japan Wakayama Bldg.

-554

-804

250

JPR Dojima Bldg.

307

-124

431

JPR Nagoya Fushimi Bldg.

-388

-409

Yakuin Business Garden

1,310

0

JPR Shinsaibashi West

-3

-678

675

JPR Shinsaibashi Bidg.

0

-159

159

New
establishment
or expansion
Eviction, etc. 10%
Better location
13%
or building
6%

building

Move-ins

BYGS Shinjuku Bldg.

-157

Move-outs
52

Move-outs

Shinjuku Center Bldg.

175■ Reasons for move-ins and move-outs

Eviction, etc.

■ Move-In/Move-Out Spaces by Property

545
1,174

21
1,310

44

Yields (as of Dec 31, 2021)

5. Appendix■ Yields by Area and by Asset Class(based on book value)

Central Tokyo(NOI yield)（%）

10■ NOI Yield by Property (based on book value)

Circle size = portfolio asset size (book value)
Center of circle = NOI yield

Officeproperties inCentral Tokyo

OfficeOfficeproperties in properties inGreater Tokyo Other Cities

6.3%

6.5%

Kanematsu Bldg.
Kanematsu Bldg. Annex

Retailproperties

JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.

5
Portfolio average
4.8%

4.7%

Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Tower0

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

(After-depreciation yield)（%）

10

Shinagawa Canal Bldg.
Rokubancho Bldg.

Circle size = portfolio asset size (book value)
Center of circle = after-depreciation yield

JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

OfficeOfficeOfficeproperties inproperties in Greater Tokyo properties in
RetailCentral Tokyo
Other Cities properties

5

4.7%
3.4%

0

4.7%

Portfolio average
3.9%

（%）

（%）

0

MS Shibaura Bldg.

4.0%

Greater Tokyo and Other Cities

3.9%

Ginza Sanwa Bldg.
The Otemachi Tower
Science Plaza-Yonbancho Plaza
Shibadaimon Center Building
Tokyo Square Garden
JPR Kojimachi Bldg.
Otemachi Financial City North Tower
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
JPR Ginza Namiki-dori Building
FUNDS Suidobashi
Average of Central Tokyo

5
3.5
6.7
6.3
4.9
4.0
6.7
6.6
3.4
6.3
4.8
5.0
4.0
3.1
4.1
4.0
4.3
4.7
6.2
3.2
3.2
3.6
5.5
6.0
2.6
2.7
2.9
4.8
3.0
3.5
3.0
2.5
2.7
3.9

10

0

15

5

10
6.7
7.2
7.6

Arca East Bldg.
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.

9.6
8.7
8.7
7.0

Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg.
Omiya Prime East
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Average of Greater Tokyo

2.9

7.3
6.0
6.4
8.5
4.8
9.5
9.4
4.4
6.1
4.2
4.2
6.1
10.0

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.

3.3

JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.

5.0

10.1
12.1
9.8
8.6
7.8

Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA(Umekita and South)
GRAND FRONT OSAKA(North)
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

15

2.8
4.0
4.2
3.7
4.5

8.2

6.2
4.8
5.9

45

5. Appendix

Occupancy Rate and Rent

■ Change in Occupancy Rate and Rents
Dec. 2018(34th period)

Jun. 2019(35th period)

Dec. 2019(36th period)

Jun. 2020(37th period)

Dec. 2020(38th period)

Jun. 2021(39th period)

Dec. 2021(40th period)

Occupancy rate based on concluded
contracts (period average),%Occupancy rate based on generated
rents (period average),%

98.8

98.8

99.2

99.4

99.1

97.7

95.8

97.8

98.1

98.3

99.3

98.7

96.5

94.2

Average rent (entire area), yen

17,98018,177

18,47718,801

18,977

19,166

19,445

Average rent (central Tokyo), yen

21,053

21,45921,83322,18322,31322,451

22,533

Average rent (greater Tokyo), yen

17,233

17,24017,403

18,13918,196

18,217

18,420

Average rent (other cities), yen

13,14913,375

13,562

13,72013,912

14,067

14,606

Gap in rent（%）

-4.1

-5.1

-6.9

-4.8

-3.2

-0.6

-0.6

Occupancy rate based on concluded
contracts (period average),%Occupancy rate based on generated
rents (period average),%

99.9

99.9

100.0

100.0

100.0

99.3

99.5

99.4

99.8

99.9

100.0

100.0

99.2

99.2

RetailOfficeItem■ Status of Rent revision, Rent Through Tenant Replacement
and Contribution Rate (Dec. ‘21)
Item
Rent revision subtotal

Upward revision of rent

Number ofcontracts

Area(thousand㎡)■ Leased Area by Rent Level/Ratio of Contracts
with Upward Rent Revision (Contracts renewed Dec. ’21 period)（%）(million yen)

Increase/
Decrease
Ratio (%)

Area ratio Increase/
Decrease

162

74.8

86.5

+3.6

+0.8

29

18.0

20.8

+6.7

+6.2

Downward revision of
rent
Neither upward or
downward revision ofrent
Tenant replacement
subtotal

3

2.7

3.2

-3.1

-17.3

130

54.0

62.5

-

-

48

11.6

13.5

-0.7

-1.2

Increase throughtenant replacement

19

4.7

5.5

+2.9

+13.1

21

5.0

5.8

-3.6

-11.1

8

1.8

2.2

-

-

210

86.5

100.0

+2.8

+0.6

Decrease throughtenant replacements
Neither upward or
downward revision of
rent
Total (Rent revision +Tenant replacement)

Item

Area
(thousand㎡)

Area ratio（%）

Ratio ofcontractswith upwardrevision（%）

Less than market rent

22.9

36.8

40.0

Within market rent

15.6

25.0

9.6

Market rent more

23.7

38.1

14.6

■ Leased Area by Rent Level(Contracts renewed Jun. ‘22 period - Dec. ’23 period)
Item

Area
(thousand ㎡)

Area ratio (%)

Less than market rent

64.2

25.8

Within market rent

83.1

33.4

Market rent more

101.6

40.8

46

5. Appendix

Value Enhancing Construction WorkStrengthening competitiveness of properties through renovation into higher grade buildings
Value enhancing work at BYGS Shinjuku Bldg.
• Carried out renovation work of common areas, including
entrances from 2nd basement floor, which is the mainconcourse connected directly to Shinjuku-sanchome
Station, through to 1st floor.
• In addition to convenience of direct connection to station,
property now has higher grade feel and fresher image
through renovation intended to further improve its
competitiveness.
• Occupancy is expected to fall to 87.7% in March '22 due tomultiple move-outs but is expected to recover to 98.4% byJune '22. Tenants for vacant space were found quickly
despite COVID-19 pandemic thanks to renovation work.
Evaluation of existing tenants also improved.

<Trends in occupancy rate>（％） 100.0

95.6

95.6

98.4

95.6

1st floor entrance hall

1st floor elevator hall

92.4
87.7

90.0

87.7

80.0

70.0
'21.12

entrance

'22.1

'22.2

'22.3

'22.4

'22.5

(forecast)(forecast)(forecast)(forecast)'22.6 (month/year)(forecast)

2nd basement floor entrance (directly linked to metro station)

47

5. Appendix

Appraisal Value (as of Dec 31, 2021)

Unrealized gains grew due to an increase in appraisal value Unrealized gains and ratio of unrealized gains
remained at a high level
Status of Change in Appraisal Value

Appraisal Value and Unrealized Gains
Appraisal Value

Unrealized Gains

574.9 billion yen

116.9 billion yen(up 4.7 billion yen from39th period (Jun. ‘21))(up 6.8 billion yen from39th period (Jun. ‘21))

Ratio of unrealized gains➢ The cap rate fell slightly.
The property sales market remained buoyant and unrealized gain increased.

（Appraisal Value）(number of property) （Direct Cap Rate）(number of property)

25.5%(up 0.4pt from 39th period(Jun. ‘21))

1. Impact of sold properties is not included in calculation of change from previous period.

Changes in unrealized gains and losses

Jun. ‘21

Dec. ’21

Lowering

0

28

22

Same

63

38

8

Rising20Jun. ‘21

Dec. ‘21

Increase

37

36

Same

14

Decrease

14

Unrealized gains and losses (left axis)(100 mn. yen)（%）

Ratio of unrealized gains and losses (right axis)

1,200

116.9 billion yen

30

25.5%

20

1,000
800
600
400

10

200
0

0

-200

-400

Jun. '02

Dec. '03

Dec. '05

Dec. '07

Dec. '09

Dec. '11

Dec. '13

Dec. '15

Dec. '17

Dec. '19-10
Dec. '21(period)48

5. Appendix

Property nameAppraisal Value by Property (as of Dec 31, 2021)

Appraisal value Change(mn yen)(mn yen)Direct cap(NCF Cap)(%)

Change(% pt)

DCF
discount Change
rate(% pt)(%)

DCF
terminal
cap(%)

Change(% pt)

Book value(mn yen)

Unrealized
gain or loss
(mn yen)Kanematsu Bldg.

14,900

+100

3.4

0.0

3.2

0.0

3.6

0.0

14,749+151

Kanematsu Bldg. Annex

3,410

-110

3.8

0.0

3.6

0.0

4.0

0.0

2,404

+1,006JPR Ningyo-cho Bldg.

3,040

+110

3.7

-0.1

3.5

-0.1

3.8

-0.2

2,115

+925

Shin-Kojimachi Bldg.

4,380

+110

3.5

-0.1

3.2

-0.1

3.6

-0.2

2,423

+1,957

JPR Crest Takebashi Bldg.

3,790

-

3.8

0.0

3.6

0.0

4.0

0.0

3,282

MS Shibaura Bldg.

15,900

+600

4.0

-0.1

3.7

-0.1

4.1

-0.2

Gotanda First Bldg.

4,270

+90

3.7

0.0

3.4

0.0

3.8

-0.1

JPR Ichigaya Bldg.

4,850

-

3.7

0.0

3.5

0.0

3.9

0.0

Oval Court Ohsaki Mark West

5,110

+60

3.9

0.0

3.7

0.0

4.1

Shinjuku Square Tower

14,800

-

3.7

0.0

3.5

0.0

3.9

BYGS Shinjuku Bldg.

19,600

-500

3.6

0.0

3.4

0.0

783

+2

4.5

0.0

4.3

Shinjuku Center Bldg.

19,000

+900

3.1

-0.1

Minami Azabu Bldg.

3,330

+160

3.7

-0.1

Shinagawa Canal Bldg.

2,360

-

3.8

Rokubancho Bldg.

3,630

+130

JPR Harajuku Bldg.

10,500JPR Nihonbashi-horidome Bldg.

6,810

JPR Sendagaya Bldg.
Ginza Sanwa Bldg.

Property name

Direct cap
DCF(NCF Cap) Change discou Change(%)(% pt) nt rate (% pt)(%)

Appraisal value Change(mn yen)(mn yen)DCF
terminal
cap(%)

Change(% pt)

Book value(mn yen)

Unrealized gainor loss(mn yen)

4,620

-30

4.0

-0.1

3.7

-0.1

4.1

-0.2

2,883

+1,737

Rise Arena Bldg.

17,700

+140

3.7

-0.1

3.4

-0.1

3.8

-0.1

12,477+5,223

Yume-ooka Office Tower

7,310

+60

4.0

0.0

3.7

0.0

4.1

-0.1

5,153

+2,157

Olinas Tower

40,000

+400

3.5

-0.1

3.2

-0.1

3.6

-0.2

25,776

14,224+508

JPR Yokohama Bldg.

10,200

+270

3.9

-0.1

3.7

-0.1

4.0

-0.2

7,465

+2,735

10,759+5,141

Omiya Prime East

10,400

+720

4.2

-0.1

4.0

-0.1

4.3

-0.2

5,517

+4,883

2,978+1,292

Sencity Bldg.

14,800

+200

4.2

-0.1

3.9

-0.1

4.3

-0.2

13,922

+878

5,277

-427

Tanashi ASTA

11,000

-

5.2

0.0

5.1

0.0

5.4

0.0

6,982

+4,0180.0

2,726+2,384Cupo-la Main Bldg.

2,890

-

4.9

0.0

4.7

0.0

5.1

0.0

1,573

+1,3170.0

12,944+1,856

JPR Musashikosugi Bldg.

5,500

-

4.7

0.0

4.5

0.0

4.9

0.0

7,118

-1,6183.8

0.0

15,520+4,080Musashiurawa Shopping Square

4,290

-

4.9

0.0

4.8

0.0

5.1

0.0

3,458

+832

0.0

4.7

0.0

573

+210

Kawasaki Dice Bldg.

14,100-1,600

4.1

0.0

4.0

0.0

4.3

0.0

12,973+1,127

2.8

-0.1

3.2

-0.2

22,173-3,173FUNDES Ueno

4,000

-

3.7

0.0

3.4

0.0

3.9

0.0

3,752

+248

3.5

-0.1

3.8

-0.2

3,795

-465

Niigata Ekinan Center Bldg.

2,270

+10

5.6

0.0

5.6

0.0

5.8

0.0

1,550

+720

-0.1

3.5

-0.1

3.9

-0.2

1,893

+467

JPR Naha Bldg.

2,240

+60

4.9

-0.1

4.9

-0.1

5.1

-0.1

1,628

+612

3.9

-0.1

3.6

-0.1

3.9

-0.2

2,904

+726

Sompo Japan Sendai Bldg.

4,870

+140

4.8

-0.1

4.5

-0.1

4.9

-0.2

2,276

+2,594

-

3.7

0.0

3.5

0.0

3.9

0.0

8,763

+1,737

Sompo Japan Wakayama Bldg.

1,640

-

6.1

-0.1

5.9

-0.1

6.4

-0.1

1,315

+325

-

4.2

0.0

4.0

0.0

4.4

0.0

4,844

+1,966

Tenjin 121 Bldg.

3,940

+210

4.1

-0.1

3.7

-0.1

4.2

-0.2

1,988

+1,952

11,900

-

3.8

0.0

3.6

0.0

4.0

0.0

14,670-2,770JPR Dojima Bldg.

3,820

+240

4.0

-0.1

3.8

-0.1

4.1

-0.1

2,089

+1,731

3,740

-10

3.0

0.0

2.7

0.0

3.1

0.0

3,673

+67

JPR Nagoya Fushimi Bldg.

3,440

+20

4.8

0.0

4.4

0.0

4.8

0.0

3,787

-347

The Otemachi Tower (Land with Leasehold Interest)

52,500

-

2.6

0.0

2.5

0.0

2.7

0.0

38,388+14,112Yakuin Business Garden

22,200

+800

3.9

-0.1

3.7

-0.1

4.0

-0.2

9,878

+12,322

Science Plaza - Yonbancho Plaza

3,410

+90

3.7

-0.1

3.3

-0.1

3.8

-0.2

2,773

+637

JPR Shinsaibashi Bldg.

4,700

+40

3.7

0.0

3.4

0.0

3.8

0.0

5,202

-502

Shibadaimon Center Bldg.

6,530

+240

3.4

-0.1

3.1

-0.1

3.5

-0.2

4,152

+2,378JPR Shinsaibashi West

4,520

+160

4.0

-0.1

3.8

-0.1

4.1

-0.2

3,904

+616

Tokyo Square Garden

20,800

-600

2.6

0.0

2.4

0.0

2.8

0.0

18,363+2,437

GRAND FRONT OSAKA(Umekita Plaza and South Building)

12,300

-

3.2

0.0

3.0

0.0

3.3

0.0

11,858+442

JPR Kojimachi Bldg.

6,840

+400

3.1

-0.2

2.9

-0.1

3.2

-0.2

5,808

+1,032

GRAND FRONT OSAKA(North Building)

10,100

-

3.3

0.0

3.1

0.0

3.4

0.0

9,549

+551

Otemachi Financial City North Tower

12,700

+600

2.4

-0.1

2.1

-0.1

2.5

-0.2

11,531+1,169JPR Umeda Loft Bldg.

8,400

-

3.8

0.0

3.5

0.0

4.0

0.0

7,471

+929

JPR Shibuya Tower Records Bldg.

14,200

+100

3.4

0.0

3.2

0.0

3.6

0.0

11,400+2,800

Housing Design Center Kobe

7,290

-300

5.4

0.0

5.2

0.0

5.5

0.0

6,078

+1,212

JPR Chayamachi Bldg.

8,480

+70

3.3

0.0

3.0

0.0

3.4

0.0

6,001

+2,479574,963

Across Shinkawa Bldg. Annex

JPR Jingumae 432

4,270

-

2.9

0.0

3.0

0.0

3.1

0.0

4,261

+9

Shinjuku Sanchome East Bldg.

2,720

+20

3.2

0.0

2.7

0.0

3.4

0.0

2,530

+190

Tachikawa Business Center Bldg.

3,330

-

2.9

0.0

2.5

0.0

3.1

0.0

3,266

+64

+4,752458,015+116,948

JPR Ginza Namiki-dori Bldg.

11,100

-

2.8

0.0

2.5

0.0

2.8

0.0

10,143+957

Central Tokyo

297,893 +2,402

254,252+43,641

FUNDES Suidoubashi

3,390

-90

3.5

0.0

3.3

0.0

3.7

0.0

3,173

+217

Greater Tokyo

176,860+900

129,188+47,672

Arca East

7,070

+140

3.7

-0.1

3.4

-0.1

3.8

-0.2

4,156

+2,914

Other Cities

100,210 +1,450

74,575+25,635

JPR Chiba Bldg.

1,830

-

5.3

0.0

5.1

0.0

5.5

0.0

2,196

-366

JPR Yokohama Nihon Odori Bldg.

2,350

-

4.9

0.0

4.7

0.0

5.1

0.0

2,348

+2

Shinyokohama 2nd Center Bldg.

2,460

+80

4.4

-0.1

4.2

-0.1

4.5

-0.2

1,392

+1,068Kawaguchi Center Bldg.

10,600

+300

4.6

-0.1

4.3

-0.1

4.7

-0.2

7,181

+3,419JPR Ueno East Bldg.

5,740

+220

3.6

-0.1

3.4

-0.1

3.7

-0.2

2,867

+2,873

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

Total

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income
approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate thatserve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.
3. Calculated change in period-on-period doesn't include Tokyo Tatemono Honmachi Bldg. which is sold in the Dec. ‘21 fiscal
period.

49

5. Appendix

JPR’s Commitment to Sustainability（１）Actively implementing sustainability initiatives for diverse stakeholders based on Sustainability Policy

Sustainability Policy✓ Initiatives on Behalf of Tenants
We will work with integrity and responsibility in responding to tenants,
and endeavor to provide them with new and distinct values as well as
enhancing their satisfaction.

✓ Initiatives on Behalf of the Environment
Recognizing the importance of addressing environmental issues, wewill aim to reduce the environmental load by managing the assets
owned by JPR.
•

We will promote energy saving and the reduction of greenhousegas emissions.

•

We will endeavor for the effective use of water resources and workon the "3Rs" (reuse, reduce and recycle) of waste.

•

We will strive to proactively disclose information on environmental
issues.

✓ Initiatives on Behalf of Local Communities
We will work to coordinate with local communities by managing theassets owned by JPR, in an effort to contribute to enhancing the brandvalue of the entire area in which such assets are located.

✓ Initiatives on Behalf of the Employees

Major Stakeholder engagement• Proactively disclosing information including
ESG-related information• Pursuing dialogue with investors• Maintaining a robust governance system• Strengthening the risk management
structure• Improving tenant satisfaction• Creating safe, secure and pleasant working
environments• Building resilience• Contributing to local communities

Investors

Tenants/Local
communities

Employees

Environment/
Business
partners• Developing professionals• Promoting physical and mental health andwork-life balance• Promoting diversity• Developing environments that allows
employees to fulfil their potential• Acquiring environmental certifications andimproving evaluations• Reducing CO2 emissions and waste• Implementing energy-saving construction work
• Thoroughly implementing human rights due
diligence

Active disclosure of sustainability information• Periodic issuance of Sustainability Report• Creation of ESG page on JPR website• Disclosure of quantitative information such asenvironment-related data and TRIM employee data

We will respect each of our employees to realize an employee-friendly
workplace, helping them to enhance their skills in their specialties.

✓ Initiatives on Behalf of the Society
We will abide by laws and regulations as well as the rules of society,and will conduct business operations with a focus on transparency andobjectivity while holding on to our high moral standards.

50

5. Appendix

JPR’s Commitment to Sustainability （2）Working on the implementation of sustainability measures and the enhancement of ESG management to solve
identified material issues (materialities)■ Materialities of JPR and TRIM and strategic targets
Materialities
Portfolio greening

Countering climate change

Strategies

2030 target

Raising the ratio of properties with green
certification

Green certification acquisition rate of 80% or more

Improving the environmental rating of real estate

Improving coverage over standard evaluation

Net zero CO2 emissions by 2050
Reduction of CO2

Achieving 30% reduction in CO2 per floor area(compared with the 2017 level)

Efficient use of water resources

Achieving 10% reduction in water use per floor area(compared with the 2017 level)

Strengthening climate change risk management

Building industry-leading climate change risk response
capabilities

Working with tenants to address climate change

Expansion of green lease agreement

Improving tenant satisfaction with safety,
security and comfort

Improving satisfaction by providing tangible andintangible services (safety, security and comfort)

Improving overall tenant satisfaction (safety, security
and comfort)

Creating a rewarding workplace environment

Strengthening human resources through training
and self-development support

Fostering professionals who support corporate growth

Building an efficient business structure

Improvement of business efficiency and process

Maintaining and improving physical and mental
healthRealization of physical, mental health and work-lifebalanceCreating a rewarding workplace environment

Providing an environment where each person can play
an active role

Implementation of transparent management
through active IR

Industry-leading information disclosure

Strengthening corporate governance

SDGs

Active dialogue with investors
Promoting dialogue with individual investors

Improving ESG overall strength

Obtaining industry-leading ESG valuation

Enhancing a strong corporate governance

Maintaining a strong corporate governanceRaising the ratio of properties with green
certification

Green certification acquisition rate of 80% or more51

5. Appendix

JPR’s Commitment to Sustainability （3）Declaration of Support for the TCFD Recommendations
Promoting sustainable operations based on recognition of the impact of climate change■ Support for TCFD and scenario analysis
In May 2021, TRIM announced its support for the TCFD (Task Force on Climate-related Financial Disclosures),which was established by Financial Stability Board (FSB). Based on the four core pillars (governance, strategy,
risk management, and metrics and targets) of the TCFD recommendations, TRIM conducted an analysis ofclimate change risks and opportunities.

■ Identifying risks and opportunities
Type of risk/
opportunity

Transition
risk

Physical risks

opportunities

Time span

Level ofimpact1.5/2℃

Level ofimpact4℃

Increase in operation costs resulting from theintroduction of a carbon tax

Medium to long

High

High

Cost increase resulting from the increase of energy
pricesMedium to long

Low

MiddleLoss of tenants due to a delay in taking green building
measures

Short, medium,and long

High

Low

Withdrawal of investors due to a delay in taking green
building measures

Medium to long

High

Low

Increase in energy consumption attributed to chronic
temperature increase

Medium to long

MiddleMiddleIncrease in repair costs associated with water damage
risk

Short, medium,and long

High

High

Increase in rents for green buildings

Medium to long

High

Low

Cost reduction effect of energy conservation and useof renewable energy

Medium to long

Low

Low

Risk that was identified■ Implementation of scenario analysisi.

1.5/2°C scenario (significant impact from regulations)
A scenario in which laws and regulations are tightened tocontrol climate changeii.

4°C scenario (great impact of climate change)
A scenario in which natural disasters grow serious becauseof delays in addressing climate change■ Risk managementi.

Risk management
Climate change risks are integrated with risks related tooperations and management. They are monitored andmanaged through multiple verification systems.

ii.

Risk management process
TRIM monitors climate change risks and other risks twicea year, and the Sustainability Committee considers theserisks.

TRIM addresses climate change risks by classifying them into transition risks andphysical risks, and is also actively focusing on capturing new growth opportunities.

52

5. Appendix

Unitholders (as of Dec 31, 2021)■ Number of Units by Unitholder Type■ Top Unitholders(958,250 units in total)

Securities
companies
35,257
4%

Individuals
32,6703%3%Foreign investors
161,071
17%

Other domestic
corporation
82,4999%

Rank

Financial
institutions
646,75367%
Of which, investment
Trusts incorporating
JPR units361,526
38%■ Number of Unitholders by Unitholder Type

Financial
institutions
178
2%

Securities
companies
24
0%

Individuals
9,546
93%

Number of
Owned
Units

Share
(%)

1

Custody Bank of Japan, Ltd. (Trust Account)

250,399

26.1

2

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

170,867

17.8

3

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

42,824

4.5

4Tokyo Tatemono Co., Ltd.

29,300

3.1

5Kawasaki Gakuen

25,000

2.6

6

Custody Bank of Japan, Ltd.
(Securities Investment Trust Account)

24,2592.5

7

Meiji Yasuda Life Insurance Company

24,000

2.5

8STATE STREET BANK WEST CLIENT-TREATY
505234

12,812

1.3

9SSBTC CLIENT OMNIBUS ACCOUNT

12,122

1.3

10

SMBC Nikko Securities Inc.

11,635

1.2

Total

603,21862.9(10,229 unitholders in total)

Foreigninvestors
279
Other domestic
3%
corporation
202
2%

Name

53

5. Appendix

Investment Unit Price and Distribution per Unit

■Changes in Unit Price
日経平均株価(指数化)
Nikkei stock average (indexation)

JPR

(yen)

600,000

400,000

200,000

0'02/6‘02/12'03/6‘03/12'04/6‘04/12'05/6‘05/12'06/6‘06/12'07/6‘07/12'08/6‘08/12'09/6‘09/12'10/6‘10/12'11/6‘11/12'12/6‘12/12'13/6‘13/12'14/6‘14/12'15/6‘15/12'16/6‘16/12'17/6‘17/12'18/6‘18/12 '19/6‘19/12 '20/6‘20/12 '21/6‘21/12(year/
month)'17/6‘17/12'18/6‘18/12(year/
month)■Changes in JPR Dividend Yield(%)

10y JGB yield
10年国債利回り

JPR

10.0
8.0
6.0
4.0
2.0
0.0

-2.0
'02/6

'03/6

‘02/12'04/6‘03/12‘04/12'05/6‘05/12'06/6‘06/12'07/6‘07/12

'08/6

'09/6

‘08/12'10/6‘10/12‘09/12'11/6‘11/12'12/6‘12/12'13/6‘13/12'14/6‘14/12'15/6‘15/12'16/6‘16/12'19/6‘19/12'20/6‘20/12'21/6‘21/12120 .0■Changes in cash distribution per unit

110 .0100 .0

(yen)

90. 0

6,912 6,873
5,738

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 6,419

7,048
6,588 6,756

7,213 7,223 7,245

7,750 7,657 7,550
7,326 7,380 7,493 7,595

80. 0

70. 0

60. 0

50. 0

3,731
40. 0

2,545
30. 0

20. 0

10. 0

0

0.0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
1. Prepared by TRIM based on Refinitiv data.
2. Nikkei stock average (indexation) in Changes in Unit Price is calculated on the basis that June 14, 2002 = 200,000 yen.
3. JPR dividend yield is calculated by dividing the sum of dividend for the last two periods by daily unit price.

20

21

22
'12

23

24
'13

25

26
'14

27

28
'15

29

30
'16

31

32
'17

33

34
'18

35

36
'19

37

38
'20

39

40 (period)'21

54

5. Appendix

Asset Manager■Summary of Asset Manager■Sponsors（as of Dec 31, 2021）（as of Dec 31, 2021）

Shareholding
ratio

No. of seconded
staff fromsponsors

Tokyo Tatemono

75%

8

Yasuda Real Estate

10%－

Yoshihiro Jozaki

Taisei Corporation

10%－

Directors

7 (3 full-time and 4 part-time)

Meiji Yasuda Life Insurance5%－

Number of Officers

46

Name

Tokyo Realty Investment Management, Inc. (TRIM)

Address

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

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO■Organization ChartName（as of Dec 31, 2021）■Sponsors Support

Shareholder’s Meeting
Auditors

No.

Summary of sponsor’s support

Board of Directors

President & CEO

Compliance OfficeFinancial Division2

Provision of know-how on real estate management in general, including tenant leasing
and technical support

3

Supply of properties and provision on information on property acquisition

4

Fund procurement support including funding through debt financeCorporate Planning /Administration Division

Research Grp.

Financial Grp.

Planning Grp.

Investment Grp.

IR Grp.

General Administration Grp.

Asset Management 1Grp.

Sustainability Grp.

Fund Management andAccounting Grp.

Asset Management 2Grp.

Personnel support through dispatching personnel to TRIM and other measures

Compliance Committee

Investment Committee

Investment Management Division1

Asset Management 3Grp.
Asset Engineering Grp.

55

5. Appendix

Large supply of offices■ Supply, Absorption and Vacancy Rates inTokyo’s 23 Wards
Supply (10 thousand sqm)

■ Breakdown of Office Building Supply by Areaand by Size (Forecast)Absorption (10 thousand sqm)

Vacancy rate (%)(By area)

Supply will be concentratedin Tokyo’s 3 central wards(Forecast)

Average new supply
in 2021-2025: 94
Average new supply
in 1986-2020: 105

161

20

2022

76

24

2023

79

21
89

2025

78

(Year)

3 central wards

11
22

145

141

Other 20 wards

（％）

120

119

114

80

2024

179

109

2021

96

97
85

85

(By size)

93

86

2021

Large supply in 2023 will be mostly officebuildings with GFA of 100,000 sqm or more
22

78

69
61

2022
49

45

55

3.9
3.2

82

2023

4.0

18

2.6
1.9

2024

1.8

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025 (Year)

2025(Year)*1. Source: Prepared by TRIM based on the 2021 Survey of Large Office Building Market Trends in Tokyo’s 23 Wards published on May 27, 2021.
*2. Absorption refers to newly occupied space (Vacant space as of end of previous period + New supply － Vacant space as of end of current period).

57
64
100,000 sqm or more

43
36
Less than 100,000 sqm

（％）

56

5. Appendix

Office Property Leasing Market■ Changes in the supply and the vacancy rate of Tokyo CBDs
(tsubo)Supply■ Changes in the average rent of Tokyo CBDs

Vacancy rate(yen/tsubo)

（%）

14.5

600,000

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,00012.5

500,000

10.5
400,000

35,0008.5

300,000

25,0006.5

200,000

4.5

100,000

2.5

0

0.5

15,0005,000
Dec '09(year)

Dec '11

Dec '13

Dec '15

Dec '17

Dec '19

Dec '21

1．Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and
NLI Research Institute.
2．Please refer to glossary for definition of building classes.

1. Prepared by TRIM based on the office market information published by Miki Shoji Co., Ltd.

■ Monthly Vacancy Rates in Tokyo CBDs

(month/year)■ Changes in the vacancy rate of Tokyo CBDs

（%）

10.0
9.0

Chiyoda Ward

Chuo Ward

Minato Ward

Shinjuku Ward

Shibuya Ward

Tokyo's Central 5 Wards（%）

Class A Bldg.

Class B bldg.

C class Bldg.

12.0

8.0

10.0

7.0
8.0

6.0

6.0

5.0
4.0

4.0

3.0
2.0

2.0
1.0
'21.01 '21.02 '21.03 '21.04 '21.05 '21.06 '21.07 '21.08 '21.09 '21.10 '21.11 '21.12 '22.1*1. Source: Prepared by TRIM based on data published by Miki Shoji Co., Ltd.

(year/
month)

0.0
Dec '09

Dec '11

Dec '13

Dec '15

Dec '17

Dec '19

Dec '21 (month/year)

57

5. Appendix

For-Sale Property Market■ Expected Cap Rate of Retail Properties andEconomy Hotel for Lodging■ Expected Cap Rate of Office (major cities)

Tokyo (Otemachi, Marunouchi)

Nagoya (around Nagoya Sta.)

Osaka (Midosuji)

Osaka (Umeda)

Retail property (Ginza)

Retail property (Osaka)

Economy hotel for lodging (Tokyo)

Economy hotel for lodging (Osaka)

Fukuoka (Tenjin)
(%)

(%)

8.0

7.5

7.0
6.5
6.0
5.5
5.0
4.5
4.0

3.5

3.0

(month/year)
1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute.

Oct '21

Oct '20

Oct '19

Oct '18

Oct '17

Oct '16

Oct '15

Oct '14

Oct '13

Oct '12

Oct '11

Oct '10

Oct '09

Oct '08

Oct '07

Oct '06

Oct '21

Oct '20

Oct '19

Oct '18

Oct '17

Oct '16

Oct '15

Oct '14

Oct '13

Oct '12

Oct '11

Oct '10

Oct '09

Oct '08

Oct '07

2.00

Oct '062.50(month/year)58

5. Appendix

Portfolio Map

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

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

SaitamaMusashiurawa
Prefecture

A-5

A-9
A-24
A-4

A-23

B-6

Chiyoda WardTokyo
A-21

A-2

A-26

B-8
A-13

Tachikawa

A-5

Harajuku

B-7

B-1
A-1

B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

Minato Ward

A-1

B-14

Chiba

B-4

Kawasaki

A-25
B-5

A-15

Kinshicho

B-2

Hamamatsucho

A-29

B-1

Musashikosugi

Chuo Ward

ShibuyaB-7

B-11

ShinagawaA-6

Shinbashi
A-18

Chiba
Prefecture

B-3

Kawaguchi

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

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

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

Kanagawa Shin-Yokohama
Prefecture
Yokohama
B-12
B-3

TamachiB-10

Kamioka

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

A-6■Other Cities
Shinagawa

Gotanda
A-7

A-16
A-10

OhsakiShinagawa Ward
A-1

Kanematsu Bldg.

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

A-2

Kanematsu Bldg. Annex

A-14

Shinjuku Center Bldg.

A-25

Shibadaimon Center Bldg.

A-3

JPR Ningyo-cho Bldg.

A-15

Minami Azabu Bldg.

A-26

Tokyo Square Garden

A-4

Shin-Kojimachi Bldg.

A-16

Shinagawa Canal Bldg.

A-5

JPR Crest Takebashi Bldg.

A-17

Rokubancho Bldg.

A-6

MS Shibaura Bldg.

A-18

JPR Harajuku Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-7

Gotanda First Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-3

JPR Jingumae 432

A-9

JPR Ichigaya Bldg.

A-21

JPR Sendagaya Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-10

Oval Court Ohsaki Mark West

A-22

Ginza Sanwa Bldg.

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-11

Shinjuku Square Tower

A-23

The Otemachi Tower

A-6

JPR Ginza Namiki-dori Bldg.

A-12

BYGS Shinjuku Bldg.

A-7

FUNDES Suidobashi(Land with Leasehold Interest)

A-27

JPR Kojimachi Bldg.

A-28

Otemachi Financial City North Tower

A-29

Tokyo Tatemono Higashi Shibuya Bldg.

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi West

C-23

GRAND FRONT OSAKA (Umekita Plaza and South Bldg.)

C-24

GRAND FRONT OSAKA (North Bldg.)

C-1

JPR Umeda Loft Bldg.

C-5

JPR Chayamachi Bldg.
Sendai
NiigataC-14

Tenjin 121 Bldg.

C-20

Yakuin Business Garden
Kobe
Fukuoka

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

59

5. Appendix
A-1
Kanematsu Bldg.

Portfolio List（Central Tokyo）
A-2
Kanematsu Bldg. Annex

A-3
JPR Ningyo-cho Bldg.

A-4
Shin-Kojimachi Bldg.

A-5

A-6

A-7

JPR Crest Takebashi Bldg.

MS Shibaura Bldg.

Gotanda First Bldg.

The exteriorof a building

Acquisition Price

16,276 million yen

2,874 million yen

2,100 million yen

2,420 million yen

4,000 million yen

11,200 million yen

2,920 million yen

Total Floor Space*

14,995㎡

4,351㎡

4,117㎡

5,152㎡

4,790㎡

31,020㎡

10,553㎡

Period-end
occupancy rate

95.0%

100.0%

100.0%

96.7%

100.0%

100.0%

100.0%

Kyobashi, Chuo-ku

Kyobashi, Chuo-ku

Nihonbashiningyocho, Chuo-ku

Kojimachi, Chiyoda-ku

Kandanishikicho, Chiyoda-ku

Shibaura, Minato-ku

Nishigotanda, Shinagawa-ku

Acquisition Date

2001.122001.122001.11‘01.11/’02.11/’04.11

2002.6

2003.3

2003.7

Completed1993.2

1993.2

1989.12

1984.10

1999.91988.2

1989.7Address

A-９
JPR Ichigaya Bldg.

A-10

A-11

Oval Court Ohsaki Mark West

Shinjuku Square Tower

A-12
BYGS Shinjuku Bldg.

A-13
Across Shinkawa Bldg.
Annex

A-14
Shinjuku Center Bldg.

A-15
Minami Azabu Bldg.

The exteriorof a building

Acquisition Price

5,100 million yen

3,500 million yen

Total Floor Space*

5,888㎡

28,575㎡

Period-end
occupancy rate

90.9％

100.0％

Kudanminami, Chiyoda-ku

Acquisition Date

Completed

Address

14,966 million yen

15,121 million yen

710 million yen

21,000 million yen

3,760 million yen

78,796㎡

25,733㎡

5,535㎡

176,607㎡

4,570㎡

93.6％

95.6％

77.1％

92.7％

100.0％

Higashigotanda, Shinagawa-ku

Nishishinjuku, Shinjuku-ku

Shinjuku, Shinjuku-ku

Shinkawa, Chuo-ku

Nishishinjuku, Shinjuku-ku

Minamiazabu, Minato-ku

2004.5

2004.6‘04.7/’08.9/’15.3/’15.10‘04.11/’05.4/’10.7

2004.112008.32008.7

1989.3

2001.6

1994.10

1985.4

1994.6

1979.10

1992.6(entire redevelopment area)* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

60

5. Appendix
A-16
Shinagawa Canal Bldg.

Portfolio List（Central Tokyo）
A-17
Rokubancho Bldg.

A-18
JPR Harajuku Bldg.

A-20
JPR Nihonbashi-horidome Bldg.

A-21
JPR Sendagaya Bldg.

A-22
Ginza Sanwa Bldg.

A-23 The Otemachi Tower(Land with Leasehold Interest)

The
exterior ofa building

Acquisition Price

2,041 million yen

2,800 million yen

8,400 million yen

5,100 million yen

15,050 million yen

3,400 million yen

36,000 million yen

Total Floor Space*

5,216㎡

4,205㎡

6,466㎡

7,190㎡

7,683㎡

8,851㎡

11,034㎡(ground area)

Period-end
occupancy rate

92.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Konan, Minato-ku

Rokubancho, Chiyoda-ku

Jingumae, Shibuya-ku

Nihonbashihoridomecho, Chuo-ku

Sendagaya, Shibuya-ku

Ginza, Chuo-ku

Otemachi, Chiyoda-ku

Acquisition Date

‘08.12/’19.3

2009.122009.122010.32010.52011.82012.3Completed2008.7

1991.10

1989.3

2002.62009.5

1982.102014.4(reference)

A-24

A-25

Science Plaza - Yonbancho
Plaza

Shibadaimon Center Bldg.

A-26
Tokyo Square Garden

Address

A-27
JPR Kojimachi Bldg.

A-28
Otemachi Financial City
North Tower

A-29
Tokyo Tatemono Higashi
Shibuya Bldg.
(Acquisition date:Jan 18,2022)

The
exterior ofa building

Acquisition Price

2,660 million yen

4,220 million yen

18,400 million yen

5,750 million yen

11,400 million yen

11,300 million yen

Total Floor Space*

24,560㎡

11,419㎡

112,645㎡

4,438㎡

239,769.07㎡

15,662㎡

Period-end
occupancy rate

95.8%

100.0%

91.5%

70.9%

100.0%

ー

Yonbancho, Chiyoda-ku

Shibadaimon, Minato-ku

Kyobashi, Chuo-ku

Kojimachi, Chiyoda-ku

Otemachi, Chiyoda-ku

Higashi,Shibuya-ku

Acquisition Date2013.12’13.12/’14.7‘17.2/’17.4

2019.62020.122022.1

Completed1995.2

1993.72013.2

1999.2

2012.10

1993.5Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

615. Appendix
A-1
JPR Shibuya Tower
Records Bldg.

Portfolio List（ Central Tokyo, Greater Tokyo ）A-3
JPR Jingumae 432

A-4

A-5 (Yurakucho Itocia)

A-6

Shinjuku Sanchome East
Bldg.

Yurakucho Ekimae
Building

JPR Ginza Namiki-dori
Bldg.

A-7
FUNDES Suidobashi

The exteriorof a building

Acquisition Price

12,000 million yen

4,275 million yen

2,740 million yen

3,400 million yen

10,100 million yen

3,250 million yen

Total Floor Space*

8,449㎡

1,066㎡

24,617㎡

71,957㎡

1,821㎡

1,477㎡

Period-end
occupancy rate

100.0%

100.0%

100.0%

100.0%

74.1%

100.0%

Jinnan, Shibuya-ku

Jingumae, Shibuya-ku

Shinjuku, Shinjuku-ku

Yurakucho, Chiyoda-ku

Ginza, Chuo-ku

Kandamisakicho, Chiyoda-ku

Acquisition Date

2003.6

2006.3‘07.3/’08.4

2008.82016.122016.12Completed1992.2

2006.2

2007.1

2007.10

2008.62015.7Address

B-1
Arca East

B-2
JPR Chiba Bldg.

B-3

B-5

B-6

JPR Yokohama Nihon
Odori Bldg.

Shinyokohama 2nd Center
Bldg.

Kawaguchi Center Bldg.

B-7
JPR Ueno East Bldg.

B-8
Tachikawa BusinessCenter Bldg.

The exteriorof a building

Acquisition Price

5,880 million yen

2,350 million yen

2,927 million yen

1,490 million yen

8,100 million yen

3,250 million yen

3,188 million yen

Total Floor Space*

34,281㎡

9,072㎡

9,146㎡

7,781㎡

28,420㎡

8,490㎡

14,706㎡

Period-end
occupancy rate

100.0%

95.5%

100.0%

91.4%

100.0%

100.0%

97.6%

Kinshi, Sumida-ku

Chiba, Chiba

Yokohama, Kanagawa

Yokohama, Kanagawa

Kawaguchi, Saitama

Matsugaya, Taito-ku

Tachikawa, Tokyo

Acquisition Date

2001.112001.122001.11‘02.9/’13.3

2004.2

2004.3‘05.9/’07.2

Completed1997.3

1991.1

1989.10

1991.8

1994.2

1992.10

1994.12Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

62

5. Appendix
B-9
Rise Arena Bldg.

Portfolio List（Greater Tokyo）
B-10
Yume-ooka Office Tower

B-11
Olinas Tower

B-12
JPR Yokohama Bldg.

B-13
Omiya Prime East

B-14
Sencity Bldg.

The exteriorof a building

Acquisition Price

13,131 million yen

6,510 million yen

31,300 million yen

7,000 million yen

6,090 million yen

13,870 million yen

Total Floor Space*

91,280㎡

185,974㎡

257,842㎡

8,772㎡

9,203㎡

158,663㎡

64.0％

100.0％

98.3％

98.8％

100.0％

96.0％

Higashiikebukuro, Toshima-ku

Yokohama, Kanagawa

Taihei, Sumida-ku

Yokohama, Kanagawa

Saitama, Saitama

Chiba, Chiba

Acquisition Date

2007.32007.72009.6

2010.122013.32020.3Completed2007.1

1997.32006.2

1981.52009.2

1993.4

Period-end
occupancy rate

Address

B-1
Tanashi ASTA

B-3
Cupo-la Main Bldg.

B-4

B-5

JPR Musashikosugi Bldg.

Musashiurawa Shopping
SquareB-6
Kawasaki Dice Bldg.

B-7
FUNDES Ueno

The exteriorof a building

Acquisition Price

10,200 million yen

2,100 million yen

7,254 million yen

4,335 million yen

15,080 million yen

3,800 million yen

Total Floor Space*

80,675㎡

48,321㎡

18,394㎡

28,930㎡

36,902㎡

2,235㎡

Period-end
occupancy rate

100.0％

100.0％

100.0％

100.0％

98.4％

100.0％

Nishitokyo, Tokyo

Kawaguchi, Saitama

Kawasaki, Kanagawa

Saitama, Saitama

Kawasaki, Kanagawa

Ueno, Taito-ku

Acquisition Date

2001.112006.32006.92007.32007.42019.6

Completed1995.2

2006.1

1983.32005.10

2003.82017.7Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

63

5. Appendix

Portfolio List（Other Cities）

C-1
Niigata Ekinan
Center Bldg.

C-9
JPR Naha Bldg.

C-12
Sompo Japan
Sendai Bldg.

C-13
Sompo Japan
Wakayama Bldg.

C-14
Tenjin 121 Bldg.

C-17
JPR Dojima Bldg.

C-19
JPR Nagoya
Fushimi Bldg.

C-20
Yakuin Business
Garden2,140 million yen

1,560 million yen

3,150 million yen

1,670 million yen

2,810 million yen

2,140 million yen

4,137 million yen

10,996 million yen

Total Floor Space*

19,950㎡

5,780㎡

10,783㎡

6,715㎡

8,690㎡

5,696㎡

10,201㎡

22,286㎡

Period-end
occupancy rate

100.0%

100.0%

99.9%

83.6%

98.2%

100.0%

94.1%

99.9%

Niigata, Niigata

Naha, Okinawa

Sendai, Miyagi

Wakayama, Wakayama

Fukuoka, Fukuoka

Osaka, Osaka

Nagoya, Aichi

Fukuoka, Fukuoka

Acquisition Date

2001.112001.11

2002.6

2002.6

2002.6

2004.1

2005.32012.8Completed1996.3

1991.10

1997.12

1996.7

2000.7

1993.10

1991.32009.1The exteriorof a building

Acquisition Price

Address

C-21
JPR Shinsaibashi
Bldg.

C-22
JPR Shinsaibashi West

C-23
GRAND FRONT OSAKA(Umekita Plaza and South
Bldg.)

C-23
GRAND FRONT OSAKAC-1
JPR Umeda Loft Bldg.

C-4
Housing Design Center Kobe

(Umekita Plaza and South
Bldg.)C-5
JPR Chayamachi
Bldg.

The exteriorof a building

5,430 million yen

3,750 million yen

11,800 million yen

9,500 million yen

7,800 million yen

7,220 million yen

6,000 million yen

Total Floor Space*

5,303㎡

7,738㎡

10,226㎡, 181,371㎡

290,030㎡

17,897㎡

33,877㎡

3,219㎡

Period-end
occupancy rate

100.0%

99.9%

97.5%

98.2%

100.0%

100.0%

100.0%

Osaka, Osaka

Osaka, Osaka

Osaka,Osaka

Osaka,Osaka

Osaka,Osaka

Kobe,Hyogo

Osaka,Osaka

Acquisition Date

2005.52020.12021.122021.12‘03.5/’03.7

2005.92006.8Completed2003.2

1986.9‘13.2/’13.3

2013.2

1990.4

1994.6

1994.6

Acquisition Price

Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.
* The acquisition price for JPR Umeda Loft Bldg. indicates the amount equivalent to the 60% quasi-co-ownership interest in the property held by JPR as of the end of the period under review, given that JPR sold 40% of the quasi-co-ownership interest of the trust beneficiaryright in real estate in the property on December 24, 2021.

645. Appendix

Introduction to the JPR Website https://www.jpr-reit.co.jp/

8955

Having expanded IR information by adding a variety of contents,
JPR provides information in a timely manner
Property Information• [Occupancy Rate]
Occupancy Rate: data for each property (Excel) updated
monthly• [Property Data Library]
Property Data Book, Property Appraisal Summary,
Historical Data
• [Portfolio data]
Asset class, Area, Ratio of Properties by Property
Acquisition Channel, Ratio of Tenant Occupancy• [Video Presentation of Major Properties]

Overview of Property・Access Map• [Property Overview]
Basic Information, Management Status, Major
Characteristics• [Access Map]
Search function for routes from the nearest stations(applicable for mobile phones)• Other than these, latest topics regarding management
status are posted at any time

Information of ESG
•
•
•
•
•
•

ESG of JPR
Initiatives on behalf of the environment
Initiatives for Society
Corporate Governance Initiatives
Sustainability reportGRI Standards Content Index
Extensive ESG related information
Regularly announce updated data65

5. Appendix
Term

Glossary
Term

Meaning

Properties acquired using
sponsor pipelines

Properties acquired using sponsor pipelines refer to properties acquired from sponsors, etc. andproperties acquired based on information provided by sponsors. Sponsors, etc. represent the sponsor
companies of JPR, their affiliated companies and special purpose companies (SPCs) in which thesponsors have made equity investment.

Acquisition price

The sales price (not including acquisition costs, fixed property taxes and consumption taxes) stated in
the sales agreement concerning acquisition of a property owned by JPR (hereinafter referred to as the“owned properties”) or a property to be acquired by JPR.

Asset size

The total acquisition prices of the owned properties.

Investment ratio

The investment ratio refers to the ratio of the acquisition price of relevant properties owned by JPR tothe total acquisition price of its portfolio.

Occupancy rate / occupancy
rate based on concluded
contracts

Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded contracts.
When occupancy rate for each fiscal period is indicated, it represents the average occupancy rate as ofthe end of each month that belongs to the relevant fiscal period (period average of occupancy rate atend of month). Furthermore, it may be described as “average occupancy rate” in order to distinguish itfrom “period-end occupancy rate.”

Occupancy rate based on
generated rents(Total leased space – total leased space during rent-free periods) / total leasable space

Average unit rent

Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease contracts withtenants; for certain properties, the figure includes common charges, etc. received by master lessees
without being recorded as JPR’s revenue

Meaning
The definitions of building classes used in “Ratio by grade/asset class“ on page 13 is as follows, which
TRIM sets.
Target area: Tokyo’s 23 ward
Class S: Comprehensive consideration from Bldg. scale, location, Bldg. age, etc. of the following Class A
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or moreClass B: Floor size of 200 tsubo or moreClass C: Floor size of 100 tsubo or more but less than 200 tsubo

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and “Changes inthe vacancy rate of Tokyo CBDs” on page 49 are as follows, which Sanko Estate Co., Ltd. and NLI
Research Institute sets.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage of
office buildings in surrounding wards (Gotanda/Osaki, Kita-shinagawa/Higashi-shinagawa,Yushima/Hongo/Koraku, Meguro-ku)
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age less than 15
years
Class B: Floor size of 200 tsubo or more, not applicable of A class building (including of building except
for A class of age more over 15 years)
Class C: Floor size of 100 tsubo or more but less than 200 tsubo

NOI yield(Rental revenue - expenses related to rent business + depreciation) / acquisition price (book value ormarket value, depending on the case)
NOI yield is calculated using the above formula, by dividing acquisition price (book value or market
value, depending on the case) in the formula by 365 days and multiplying it by the number of businessdays of the relevant fiscal period. The same also applies to "After depreciation yield" below.

After depreciation yield(Rental revenue - real estate - expenses related to rent business) / book value

Number of tenants

The number of tenants counts the parties with whom JPR has concluded lease contracts for the building
floors. When a single tenant leases multiple rooms, it is counted as one if the tenant uses the same
property. If the leased rooms are in multiple buildings, the tenant is counted in plural.

Ratio of long-term, fixedinterest rate debts

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

Average maturity

Weighted average calculated by dividing the remaining periods to the repayment dates and redemption
dates of borrowings and investment corporation bonds at the end of each fiscal period by the balance ofrespective borrowings and investment corporation bonds at the end of each fiscal period For borrowings
with scheduled repayment in installments, the weighted average of the remaining period to thescheduled repayment dates of each installment payment in accordance with the relevant repayment
amountAverage debt cost

(Sum total of interest expenses, interest expenses for investment corporation bonds, borrowing-related
expenses (excluding expenses related to early repayment of debts and expenses related to thecommitment line agreement), amortization of investment corporation bond issuance costs andinvestment corporation bond administration expenses incurred in each fiscal period), divided by thebusiness days of the relevant fiscal period or the said period, and annualized by multiplying by 365 days
/ average balance of debts and investment corporation bonds for each fiscal period or for the said period

Rate of rent revision

Rate of rent revision indicates the sum total of monthly rent after revision minus monthly rent before
revision upon contract renewal with rent revision (including neither upward or down revision of rent) ineach fiscal period, divided by monthly rent before revision.

Rate of tenant replacement

Rate of tenant replacement indicates the sum total of monthly rent after tenant replacement minus
monthly rent before tenant replacement in each fiscal period, divided by monthly rent before tenant
replacement.

Rent revision

Rent revision indicates the sum total of monthly rent after revision minus monthly rent before revision
upon contract renewal with rent revision in each fiscal period. Upward revision indicates only theamount of the upward revision and downward revision indicates only the amount of the downward
revision.

Tenant replacement

Tenant replacement indicates the sum total of monthly rent after tenant replacement minus monthly
rent before tenant replacement in each fiscal period. Upward revision (tenant replacement) indicates
only the increase in rent upon tenant replacement and downward revision (tenant replacement)
indicates only the decrease in rent upon tenant replacement.

Target rent

Target rent refers to the rent level (the highest limit) TRIM sets for each fiscal period as the target for
inviting new tenants and revising rents for existing tenants, and are set at roughly the same level as
the highest limit of market rent.

LTV

Base rent

Base rent refers to the rent level (the lowest limit) TRIM sets for each fiscal period as the base forinviting new tenants and revising rents for existing tenants, and are set at roughly the same level asmarket rent.

Interest bearing debts / total assets at end of period (based on book value)
There are other methods for calculating LTV.
LTV (based on valuation) = Interest bearing debt / (total assets at end of period + unrealized gains orlosses from valuation) (based on market value)
Unrealized gains or losses from valuation refer to the difference between appraisal value and book value.
Based on book value unless otherwise specified.

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

Cap rate

Rent gap

The rent gap for a month refers to, in lease contracts due for renewal during the four periods from theperiod ending in June 2022, the ratio obtained by subtracting the total difference between the lower
limit of rent in the market range and the existing rent that is lower than the lower limit of rent in themarket range from the total difference between the upper limit of rent in the market range and theexisting rent (excluding new contracts, etc.) that exceeds the upper limit of rent in the market range
and dividing that monthly difference by the monthly rent for the month in question.

Capitalization rate by the direct capitalization method Direct capitalization method is one of the methods
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 the capitalization rate.

The initiatives

The initiatives refers to the acquisition of Rise Arena Bldg. (additional ownership), Grand Front Osakaand Tokyo Tatemono Higashi Shibuya Bldg., the sale of "Tokyo Tatemono Honmachi Bldg. and JPR
Umeda Loft Bldg. the primary offering and secondary offering of investment units based on theregistration statement submitted on January 4, 2022, and the partial repayment of loans payable (4.0billion yen). "Unrealized gain," "NAV per unit" and "NOI /After depreciation yield" before the initiatives
and "NOI/After depreciation yield" after the initiatives are calculated using actual results for the Jun. '21
period and NOI according to the Appraisal Report, etc.

Tokyo/ Other cities“Tokyo” defined by JPR as its investment area collectively refers to “Central Tokyo” and “Greater Tokyo”
as defined below, and “Other Cities” refers to other regions.
• Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards• Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama Prefectures66

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking
statements are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty Investment
Management, Inc. (TRIM) based on 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 ofvarious factors including known or unknown risks and uncertainties.
• This material is solely for the purpose of providing information, and is not intended for the purpose of offeringor soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.
• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.

67