Tenth Fiscal Period Results(July 1, 2006 – December 31, 2006)

February 2007

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Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation (JPR)
Tokyo Stock Exchange (Code 8955)
Board of Directors Meeting: February 19, 2007
Payment of Dividends: March 13, 2007 (planned)
Website: http://www.jpr-reit.co.jp/jpr_e/index.html
Inquiries: Yasuo Furuya, Director and Chief Financial Officer
Tokyo Realty Investment Management, Inc.
Tel: +81-3-3516-1591
E-mail: ya-furuya@trim-reit.co.jp

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Japan Prime Realty Investment Corporation

PERFORMANCE (July 1, 2006 – December 31, 2006)(1) Business Results(Amounts less than a million yen discarded)(Millions of yen, yen for per unit information)

Operating
Revenues%
ChangeNet
Operating
Profits%
ChangeRecurring
Profits%
ChangeNet Income%
ChangeDec. 31, 2006

9,088

(5.8%)

4,373(8.7%)

3,643(5.6%)

3,642(5.6%)

June 30, 2006

8,588

(0.0%)

4,024(1.0%)

3,450(1.5%)

3,449(1.5%)(Yen)

EPU

Net Income/
NAV<Reference>(Annualized)

Recurring Profits/
Total Assets<Reference>(Annualized)

Recurring Profits/
Operating Revenues

Dec. 31, 2006

6,872

3.1%

(6.1%)

1.5%(3.0%)

40.1%

June 30, 2006

6,508

2.9%

(5.9%)

1.5%(3.0%)

40.2%

Notes: 1. EPU is calculated based on the average number of investment units during the term
Fiscal period ended June 30, 2006:
530,000 units
Fiscal period ended Dec. 31, 2006:
530,000 units
2. Changes in accounting standards: Yes
3. Percentages for operating revenues, net operating profits, recurring profits and net income show changes from the previous fiscal period, and are rounded
to the nearest tenth
4. Net income/NAV and recurring profits/total assets are calculated based on the average of unitholders’ equity (NAV) and total assets as of the beginning andend of the period
5.
Annualized result =For the period ended June 30, 2006:
Actual result/Actual investment days (181 days) x 365 days
For the period ended Dec. 31, 2006:
Actual result/Actual investment days (184 days) x 365 days

(2) Cash Distributions(Millions of yen, yen for DPU)

DPU

Distribution
AmountExceedingProfitDistribution Per
Unit

ExceedingProfitDistribution
AmountDividend
Payout Ratio

Distribution/
NAV

Dec. 31, 2006

6,873

3,642

―

―

100.0%

3.1%

June 30, 2006

6,509

3,449

―

―

100.0%

2.9%

Note: Dividend payout ratio is rounded to the nearest tenth.

(3) Financial Position(Millions of yen, yen for NAV per unit)

Total Assets

NAV

NAV Ratio

NAV Per Unit

Dec. 31, 2006

244,691

119,07448.7%

224,668

June 30, 2006

231,523

118,88151.3%

224,304

Note: Number of units outstanding at the end of the period
Fiscal period ended June 30, 2006:
Fiscal period ended Dec. 31, 2006:

530,000 units
530,000 units

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Japan Prime Realty Investment Corporation

FORECASTS FOR ELEVENTH FISCAL PERIOD ENDING JUNE 30, 2007
(Millions of yen, yen for DPU and exceeding profit distribution per unit)

Eleventh Fiscal
Period Ending

Operating
Revenues

Net
Operating
Profits

9,708

4,843

Recurring
Profits

4,126

Net Income(excluding exceeding profit
distribution per unit)

DPU

Exceeding Profit
Distribution Per
Unit

4,125

6,600

—

June 30, 2007
Reference: Estimated EPU for the fiscal period: ¥6,600

The above-mentioned forecasts are based on “Assumptions for the Eleventh Fiscal Period Forecast (January 1,
2007 - June 30, 2007)” as below. The aforementioned forecasts are based on assumptions and information
available to management as of the date of this report. As a result, actual operating revenues, recurring profit, net
income and distributions per unit will be subject to changes in market conditions. Accordingly, the forecasts are
not a guarantee of any cash distribution amounts.
Assumptions for the Eleventh Fiscal Period Forecast(January 1, 2007 - June 30, 2007)
Assumptions
PeriodProperty
Portfolio

Units outstanding

Interest-bearing Debt
Ratio

Operating Expenses

11th fiscal period: January 1, 2007 to June 30, 2007 (investment period: 181 days)
In addition to the 46 properties and preferred securities (one issue) held as of December 31, 2006, JPR is scheduled to acquire
additional ownership in the Tachikawa Business Center Building on February 28, 2007, the Shinjuku Sanchome East Building(Shinjuku 3-chome East Redevelopment Project) and Rise Arena Building (Higashi-Ikebukuro 4-chome Redevelopment
Project) in March 2007 as well as implement a transfer of Tsurumi fuga 1 and JPR Takamatsu Bldg. on April 11, 2007. The
assumed average occupancy rate at end of month is 98.4%. However, JPR assumes rent revenues from Rise Arena Building tostart on June 1, 2007.
In practice, these assumptions may vary due to the acquisition of additional properties or the sale of existing properties.
Forecast units outstanding as of June 30, 2007 are 625,000 units.
This is based on 530,000 units outstanding as of December 31, 2006 plus 90,000 units additionally issued on February 2007 anda third-party allotment of 5,000 units (maximum) to be issued on March 2007.
The interest-bearing debt ratio as of December 31, 2006 stands at approximately 48.7%.
However, following the issue of additional investment units as of January 17, 2007 and sale of Tsurumi fuga 1 and JPR
Takamatsu Bldg., JPR plans to apply these funds to the acquisitions of additional ownership in the Tachikawa Business Center
Building, the Shinjuku Sanchome East Building (Shinjuku 3-chome East Redevelopment Project) and Rise Arena Building(Higashi-Ikebukuro 4-chome Redevelopment Project) as well as to the repayment of short-term and long-term debt.
Accordingly, the interest-bearing debt ratio is expected to fall to approximately 35%. Forecasts for the 11th fiscal period are
based on an interest-bearing debt ratio of approximately 35% throughout the period.
The following formula is used for the interest-bearing debt ratio: Interest-bearing debt ratio = Interest-bearing debt /(Interest-bearing debt + Unitholders’ equity) x 100.
JPR is scheduled to acquire additional ownership in the Tachikawa Business Center Building, the Shinjuku Sanchome East
Building (Shinjuku 3-chome East Redevelopment Project) and Rise Arena Building (Higashi-Ikebukuro 4-chome
Redevelopment Project) on January 1, 2007 and after. Adjustments such as property taxes and city planning taxes levied onthese properties for the initial year of acquisition have been included in acquisition costs, and no operating expenses have been
incurred for these.
(However, property taxes and city planning taxes to be levied on the owners of the properties as of January 1, 2008 will beappropriated as operating expenses for fiscal periods ending June 2008 and after.)

Profit on Sale ofProperties
Distribution per Unit

Expected profit from the sale of two properties planned on April 11, 2007 is included in the forecast.
JPR does not currently anticipate distributions in excess of earnings per unit. Limited to JPR’s retained earnings, the forecast isbased on a distribution of amounts obtained by dividing the profit available for dividend by the number of units outstanding
and rounded down.

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Japan Prime Realty Investment Corporation

Financial Statements
Balance Sheets (December 31, 2006 and June 30, 2006)
Assets(‘000 Yen)Item

End of Tenth Period(December 31, 2006)

Current Assets:
Cash and bank deposits
Entrusted cash and deposits
Rental receivables
Prepaid expenses
Deferred tax assets
Other current assets
Total Current Assets
Fixed Assets:
Property and equipment:
Buildings
Entrusted buildings
Structures
Entrusted structures
Machinery and equipment
Entrusted machinery and equipment
Tools, furniture and fixtures
Entrusted tools, furniture and fixtures
Land
Entrusted land
Construction in progress
Entrusted construction in progress
Less: accumulated depreciation
Total Property and Equipment
Intangible Assets:
Other intangible assets
Total Intangible Assets
Investments and Other Assets:
Investment securities
Deposits
Other
Total Investments and Other Assets
Total Fixed Assets

End of Ninth Period(June 30, 2006)% Change

10,653,563
13,997,165

10,478,692
13,600,136

134,365

157,002138,530
192
9,811
24,933,629

97,900467
11,50624,345,705

2.4%

18,431,800
72,363,796
4,714
70,743
151,968
1,358,449
13,85965,02228,581,792
108,824,129
6,428―(11,749,213)
218,123,491

16,316,514
71,065,665
4,714
68,034
148,754
1,332,492
12,31058,46623,036,551
103,665,465
3,853
200
(10,169,358)
205,543,666

6.1%

5,471
5,471

5,969
5,969

(8.3%)

1,558,460
10,100250
1,568,810

1,558,460
10,100250
1,568,810―

219,697,773

207,118,445

6.1%

60,55559,14960,55559,1492.4%

244,691,958

231,523,301

5.7%

Deferred Assets:
Corporate bond issuance costs
Total Deferred Assets
Total Assets

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Japan Prime Realty Investment Corporation

Balance Sheets (December 31, 2006 and June 30, 2006)
Liabilities(‘000 Yen)Item

End of Tenth Period(December 31, 2006)

End of Ninth Period(June 30, 2006)% Change

Current Liabilities:
Trade accounts payable

923,005

785,828

Short-term borrowings

19,500,000

14,000,000

Current portion of long-term borrowings

7,500,000

22,500,000

Other accounts payable

473,515

441,179

Accrued expenses

184,597

169,453

609

773

Accrued consumption taxes

145,485

147,979

Rent received in advance

1,014,037

946,386

29,741,250

38,991,600

Corporate bonds

46,500,000

42,000,000

Long-term borrowings

35,966,000

18,966,000

Leasehold and security deposits received

3,098,556

2,718,246

10,311,883

9,965,983

Total Long-Term Liabilities

95,876,439

73,650,230

30.2%

Total Liabilities

125,617,689

112,641,830

11.5%

115,431,503

115,431,503

Retained earnings

3,642,765

3,449,967

5.6%

Total Unitholders’ Equity

119,074,268

118,881,470

0.2%

Total Liabilities and Unitholders’ Equity

244,691,958

231,523,301

5.7%

Accrued income taxes

Total Current Liabilities(23.7%)

Long-Term Liabilities:

Entrusted leasehold and security deposits
received

Unitholders’ Equity:
Unitholders’ capital
5,000,000 units authorized
530,000 units issued and outstanding on
both December 31, 2006 and June 30, 2006

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Japan Prime Realty Investment Corporation

Statements of Income and Retained Earnings (July 1, 2006 – December 31, 2006 and January 1, 2006
– June 30, 2006)(‘000 Yen)
Item
Operating Revenues
Real estate rental revenues
Dividends received
Operating Expenses
Real estate rental expenses
Asset management fees
Administrative service and custodian fees
Directors’ fees
Trust fees
Other operating expenses
Operating Profits
Non-Operating Revenues
Interest income
Income on settlement of management
association accounts
Other non-operating revenues
Non-Operating Expenses
Interest expense
Loan arrangement fees
Interest expense on corporate bonds
Amortization of corporate bond issuance costs
Other non-operating expenses
Recurring Profits
Income Before Income Taxes
Income taxes
Deferred taxes
Net Income
Retained Earnings Brought Forward
Retained Earnings at End of Period

Tenth Fiscal Period(July 1, 2006 –December 31, 2006)
9,088,175
9,056,584
31,591
4,714,416
4,151,317
356,054
63,682
5,700
51,98785,674
4,373,758
4,380
1,135
―

Ninth Fiscal Period(January 1, 2006 –June 30, 2006)
8,588,774
8,552,819
35,9554,564,632
4,013,227
350,947
68,8805,700
50,56175,316
4,024,141
67,43293
60,2493,245
734,652
378,90718,507289,135
42,221
5,879
3,643,487
3,643,487
643
275
3,642,568
197
3,642,765

7,089
640,847
296,526
18,241
277,882
42,1136,083
3,450,727
3,450,727
858
208
3,449,659
307
3,449,967% Change
5.8%

3.3%

8.7%
(93.5%)

14.6%

5.6%
5.6%

5.6%
(35.9%)
5.6%

Statements of Changes in Unitholders’ Equity (July 1, 2006 – December 31, 2006 and January 1,
2006 – June 30, 2006)

Unitholders’ capital
Balance as of Jan. 1, 2006
Changes during the period
Cash distributions paid
Net Income
Balance as of June 30, 2006
Balance as of July 1, 2006
Changes during the period
Cash distributions paid
Net Income
Balance as of Dec. 31, 2006

115,431,503

115,431,503
115,431,503

115,431,503

7

Retained earnings
3,398,137
51,829(3,397,830)
3,449,659
3,449,967
3,449,967
192,798(3,449,770)
3,642,568
3,642,765(‘000 Yen)
Total
118,829,641
51,829(3,397,830)
3,449,659
118,881,470
118,881,470
192,798(3,449,770)
3,642,568
119,074,268

CONSOLIDATED

Japan Prime Realty Investment Corporation

Statements of Cash Flows (July 1, 2006 – December 31, 2006 and January 1, 2006 – June 30, 2006)

Tenth Fiscal Period(July 1, 2006 –December 31, 2006)(‘000 Yen)
Ninth Fiscal Period(January 1, 2006 –June 30, 2006)

3,643,487
1,580,353
42,221(1,135)
668,043
22,636(40,629)(50,749)
26,577(2,494)67,650(8,633)
5,947,328
1,135(652,899)(2,588)5,292,976

3,450,727
1,561,173
42,113(93)574,408(30,776)
47,69993,39813,539(75,878)
24,795(45,793)
5,655,314
93(570,014)(1,159)5,084,234

Cash Flows from Investing Activities:
Purchases of property and equipment
Purchases of entrusted property and equipment
Payment of leasehold and security deposits received
Proceeds from leasehold and security deposits received
Payment of entrusted leasehold and security deposits received
Proceeds from entrusted leasehold and security deposits received
Net cash used in investing activities(7,578,563)(6,393,190)(29,734)
420,911(125,521)
476,231(13,229,867)(2,204,753)(4,968,166)(1,210,549)
196,265(124,217)
291,048(8,020,372)

Cash Flows from Financing Activities:
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of short-term debt
Proceeds from corporate bonds
Payment of corporate bond issuance cost
Distributions to unitholders
Net cash provided by financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

24,500,000(19,000,000)
17,000,000(15,000,000)
4,500,000(43,628)(3,447,579)
8,508,792
571,900
24,078,828
24,650,729

6,500,000―――――(3,395,973)
3,104,026
167,887
23,910,940
24,078,828

Item
Cash Flows from Operating Activities:
Income before income taxes
Depreciation
Amortization of corporate bond issuance costs
Interest income
Interest expense
Decrease (increase) in rent receivables(Increase) decrease in prepaid expenses(Decrease) increase in trade accounts payable
Increase in other accounts payable
Decrease in accrued consumption taxes
Increase in rent received in advance
Change in other current assets/liabilities
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by operating activities

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Japan Prime Realty Investment Corporation

Notes to Financial Statements＜Change in Accounting Policies＞

Accounting
for Deferred
Assets10th Fiscal Period
9th Fiscal Period(July 1, 2006 – December 31, 2006)(January 1, 2006 – June 30, 2006)
Corporate Bond Issuance Costs
Corporate Bond Issuance Costs
Corporate bond issuance costs are
Corporate bond issuance costs are
depreciated utilizing the straight-line
depreciated over three years, with an
method over the depreciation periods.
equal amount depreciated in each fiscal
The corporate bond issuance costs
period.
threcorded on the balance sheets for the 9fiscal period and before were depreciatedover three years, with an equal amountdepreciated in each fiscal period.
This has resulted in increasing thecorporate bond issuance costs by 7,163
thousand yen, decreasing depreciation of
corporate bond issuance costs by thesame amount, and increasing recurring
profits and income before income taxes
by the same amount, compared to theprevious method.

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Japan Prime Realty Investment Corporation

Subsequent Events<Issue of New Investment Units through Public Offering>
Payment in connection with new investment units, the issue and pricing of which were approved at Board of
Directors meetings held on January 17, 2007 and January 29, 2007, respectively, was completed on February 6,
2007, terms and conditions briefly as follows. As a result, unitholders’ capital totaled ¥154,552,073,600, while
the number of investment units issued and outstanding was 620,000 as of February 6, 2007.
Number of new investment units issued: 90,000
Purchase (public offering) price: ¥449,820 per investment unit
Gross proceeds: ¥40,483,800,000
Purchase (underwriting) price: ¥434,673 per investment unit
Gross proceeds: ¥39,120,570,000
Payment date: February 6, 2007
Delivery date: February 7, 2007
Starting date of computation for cash distribution: January 1, 2007
< Issue of New Investment Units through Third-Party Allotment>
JPR resolved to undertake a secondary offering (over-allotment option) by way of third-party allotment at
Board of Directors meetings held on January 17, 2007 and January 29, 2007, brief details as follows. JPR also
proved the granting of an option (the “Greenshoe Option”) by way of third-party allotment to Mizuho
Securities Co., Ltd. The greenshoe option may be exercised by no later than March 2, 2007.
Number of investment units to be issued: 5,000 (maximum)
Purchase price: ¥434,673 per investment unit
Gross proceeds: ¥2,173,365,000 (maximum)
Third-party allottee: Mizuho Securities Co., Ltd.
Payment date: March 7, 2007
Delivery date: March 8, 2007
Starting date of computation for cash distribution: January 1, 200710

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Japan Prime Realty Investment Corporation

Reference
Acquisitions
Tachikawa Business Center Building (additional ownership)
Location
2-38-5 Akebono-cho, Tachikawa-shi, Tokyo
Type of Ownership
Land: Co-ownership Bldg.: Unit ownership
Total Site Area
2,047.22 m2 (JPR’s portion: 608.90 m2 )Total Floor Area
14,706.36 m2
Proprietary Floor Area
10,027.66 m2 (JPR’s portion: 3,065.63 m2 )Type of Structure
S, SRC, B1-12F
Completion
December 1994
Number of Tenants
16
Total Leasable Floor Space
2,980.90 m2
Total Leased Floor Space
2,980.90 m2
Occupancy Rate
100%
Acquisition Price¥2,300 million
Type of Asset
Real estate
Contract Date
January 17, 2007 (Planned acquisition date: February 28, 2007)
Shinjuku Sanchome East Building
Location
1-26 Shinjuku 3-chome, Shinjuku-ku, Tokyo
Type of Ownership
Land: Unit ownership Bldg.: Co-ownership of unit ownership
Total Site Area
2,578.69 m2 (JPR’s portion: 70.33 m2 )Total Floor Area
26,360.56 m2
Proprietary Floor Area
11,173.47 m2 (JPR’s portion: 478.51 m2 )(Co-owned section only)
Type of Structure
S, RC, SRC, B3-14F
Completion
January 2007
Number of Tenants
1
Total Leasable Floor Space
11,173.47 m2(Co-owned section only)
Total Leased Floor Space
11,173.47 m2(Co-owned section only)
Occupancy Rate
100%
Acquisition Price¥540 million
Type of Asset
Real estate
Contract Date
January 17, 2007 (Planned acquisition date: March 2007)

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Japan Prime Realty Investment Corporation

Details of Corporate Bonds and Corporate Credit Ratings as of December 31, 2006
Corporate Bonds

Ratings Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

A+ (Stable)

A+*1

Moody’s Investors Service

A2 (Stable)*2

A2*2Standard & Poor’s(Bond Issues One through Seven)Long-term: A- (Stable)
Short-term: A-2 (Stable)

A-*1 JPR series 7 bonds have not obtained a rating from Rating and Investment Information, Inc.
*2 As of November 17, 2006 Moody’s Investors Service upgraded JPR’ｓissuer rating and senior unsecured long-term debt ratingfrom A3 to A2.

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Japan Prime Realty Investment Corporation

Real estate portfolio (as of December 31, 2006)
Area

Tokyo
CBDs

Type

Property Name

Location

Acquired

Acquisition
Price (yen in
millions)% of Total

Appraisal Value asof Dec. 31, 2006
(yen in millions)

OfficeKanematsu Bldg.

Chuo-ku, Tokyo

Dec. 2001

16,276

7.3%

14,800

OfficeKanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 2001

2,874

1.3%

2,960

OfficeJPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 2001

2,100

0.9%

2,430

Nov. 2001
Nov. 2002
Nov. 2004

1,670
550
200
2,420

1.1%

3,020

OfficeShin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

OfficeJPR Crest Takebashi
Bldg.

Chiyoda-ku, Tokyo

Jun. 2002

4,000

1.8%

3,780

OfficeMS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 2003

11,2005.0%

16,497

OfficeGotanda First Bldg.

Shinagawa-ku,
Tokyo

Jul. 2003

2,920

1.3%

3,640

Fukuoka Bldg.

Chuo-ku, Tokyo

Oct. 2003
Apr. 2005

1,800
1,120
2,920

1.3%

2,980

OfficeJPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 2004

5,100

2.3%

5,330

OfficeOval Court Ohsaki MarkWest

Jun. 2004

3,500

1.6%

4,160

OfficeShinjuku Square Tower

Shinagawa-ku,
TokyoShinjuku-ku,
TokyoJul. 2004

10,000

4.5%

11,790

OfficeBYGS Shinjuku Bldg.

Nov. 2004
Apr. 2005

2,900
8,921
11,821

5.3%

12,200Chuo-ku, Tokyo

Nov. 2004

710

0.3%

829

Shibuya-ku, Tokyo

Jun. 2003

12,0005.4%

14,800

OfficeOfficeRetailAcross Shinkawa Bldg.
Annex
JPR Shibuya Tower
Records Bldg.

Shinjuku-ku,
TokyoRetailJPR Daikanyama

Shibuya-ku, Tokyo

Oct. 2004

2,160

1.0%

1,730

RetailJPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 2006

4,460

2.0%

4,510

94,461

42.5%

105,456

Subtotal
OfficeArca East

Sumida-ku, Tokyo

Nov. 2001

5,880

2.6%

7,070

OfficeJPR Chiba Bldg.

Chiba, Chiba

Dec. 2001

2,350

1.1%

2,060

JPR Yokohama Nihon
Odori Bldg.
Shinyokohama 2nd Center
Bldg.

Yokohama,
Kanagawa
Yokohama,
Kanagawa
Kawaguchi,
Saitama

Nov. 2001

2,927

1.3%

2,700

Sep. 2002

920

0.4%

1,420

Feb. 2004

8,100

3.6%

10,100

OfficeOfficeGreaterTokyo

OfficeKawaguchi Center Bldg.

OfficeJPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 2004

3,250

1.5%

4,420

OfficeTachikawa BusinessCenter Bldg.

Tachikawa, Tokyo

Sep. 2005

888

0.4%

1,370

RetailTanashi ASTA

Nishitokyo, Tokyo

Nov. 2001

10,200

4.6%

13,200RetailTsurumi fuga 1 *1

Nov. 2001

3,040

1.4%

3,720

RetailCupo-la Main Bldg.

Mar. 2006

2,100

0.9%

2,570

RetailJPR Musashikosugi Bldg.

Sep. 2006

7,260

3.3%

7,010

46,91521.1%

55,640

Yokohama,
Kanagawa
Kawaguchi,
Saitama
Kawasaki,Kanagawa

Subtotal

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Japan Prime Realty Investment Corporation

Area

Type
OfficeOfficeOfficeOther
CitiesLocation

Acquired

Acquisition
Price (yen in
millions)% of Total

Appraisal Value asof Dec. 31, 2006
(yen in millions)

Niigata, Niigata

Nov. 2001

2,140

1.0%

2,270

Osaka, Osaka

Dec. 2001

8,300

3.7%

10,300

Osaka, Osaka

Nov. 2001

4,150

1.9%

4,210

Property Name
Niigata Ekinan Center
Bldg.
Meiji Yasuda-Life Osaka
Umeda Bldg.
Tokyo Tatemono
Honmachi Bldg.

OfficeJPR Takamatsu Bldg. *2

Takamatsu,
KagawaDec. 2001

2,130

1.0%

1,510

OfficeJPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 2001

2,900

1.3%

2,870

OfficeJPR Naha Bldg.

Naha, Okinawa

Nov. 2001

1,560

0.7%

1,510

OfficeNorth 33 Bldg.

Sapporo, Hokkaido

Jun. 2002

3,700

1.7%

2,970

OfficeSompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 2002

3,150

1.4%

4,070

OfficeSompo Japan Wakayama
Bldg.

Wakayama,
Wakayama

Jun. 2002

1,670

0.8%

1,900

OfficeTenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 2002

2,810

1.3%

2,820

OfficeJPR Nagoya Sakae Bldg.

Nagoya, Aichi

Sep. 2003

4,550

2.0%

5,610

OfficeJPR Dojima Bldg.

Osaka, Osaka

Jan. 2004

2,140

1.0%

2,540

OfficeJPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 2004

1,920

0.9%

2,140

OfficeUFJ Central Leasing
Head Office Bldg.

Nagoya, Aichi

Mar. 2005

4,137

1.9%

4,390

RetailJPR Umeda Loft Bldg.

Osaka, OsakaMay 2003
Jul. 2003

8,000
5,000
13,0005.8%

16,190Retail

Shtrasse Ichibancho

Sendai, Miyagi

Feb. 2005

4,200

1.9%

4,010

Osaka, OsakaMay 2005

5,430

2.4%

5,680

Kobe, Hyogo

Sep. 2005

7,220

3.2%

7,720

Osaka, Osaka

Aug. 2006

6,000

2.7%

5,560

81,10736.5%

88,270100.0%

249,366

RetailRetailRetailBenetton Shinsaibashi
Bldg.
Housing Design Center
Kobe
Chayamachi Grande Bldg.

Subtotal

222,483

Total

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Japan Prime Realty Investment Corporation

Real estate portfolio (as of December 31, 2006)
Area

Tokyo
CBDs

Type

Property Name

Leasable Area

# of
Tenants

Occupancy

OfficeKanematsu Bldg.

7,994.02㎡

10

100.0%

451,203

5.0%

OfficeKanematsu Bldg. Annex

2,291.13㎡

1

100.0%

104,611

1.2%

OfficeJPR Ningyo-cho Bldg.

2,788.98㎡

4

100.0%

100,862

1.1%

OfficeShin-Kojimachi Bldg.

2,105.44㎡
901.36㎡
312.53㎡
3,319.33㎡

7
2
1
10

100.0%
43.9%
100.0%
84.8%

71,672
13,385
11,54296,599

0.8%
0.1%
0.1%
1.1%

OfficeJPR Crest Takebashi
Bldg.

3,265.34㎡

8

87.8%

118,953

1.3%

OfficeMS Shibaura Bldg.

14,429.09㎡

8100.0%

544,268

6.0%

OfficeGotanda First Bldg.

4,243.58㎡

2

100.0%

134,424

1.5%

OfficeFukuoka Bldg.

1,250.06㎡
687.34㎡
1,937.40㎡

1
1
2

100.0%
100.0%
100.0%

64,66737,822
102,489

0.7%
0.4%
1.1%

OfficeJPR Ichigaya Bldg.

4,186.09㎡

9100.0%

188,996

2.1%

OfficeOval Court Ohsaki MarkWest

4,088.44㎡

4

100.0%

177,168

2.0%

OfficeShinjuku Square Tower

10,982.03㎡

25

100.0%

297,660

3.3%

OfficeBYGS Shinjuku Bldg.

11,357.50㎡

25

98.4%

483,5105.3%

1,253.39㎡

4

100.0%

47,7830.5%

8,076.85㎡

1

100.0%

345,576

3.8%

OfficeRetailRetailJPR Daikanyama

653.99㎡

4100.0%

47,1490.5%

RetailJPR Jingumae 432

1,027.33㎡

5100.0%

96,384

1.1%

OfficeArca East

7,022.76㎡

6

100.0%

285,469

3.2%

OfficeJPR Chiba Bldg.

5,562.97㎡

27

92.8%

137,678

1.5%

6,066.53㎡

10

93.4%

139,2641.5%

2,641.19㎡

15

100.0%

74,6900.8%

OfficeOfficeGreaterTokyo

Across Shinkawa Bldg.
Annex
JPR Shibuya Tower
Records Bldg.

Rental Revenue% of Total(yen in thousands)

JPR Yokohama Nihon
Odori Bldg.
Shinyokohama 2nd Center
Bldg.

OfficeKawaguchi Center Bldg.

15,461.98㎡

39

99.3%

486,947

5.4%

OfficeJPR Ueno East Bldg.

6,512.45㎡

8

90.9%

192,061

2.1%

OfficeTachikawa BusinessCenter Bldg.

1,747.13㎡

4

100.0%

57,515

0.6%

RetailTanashi ASTA

31,121.71㎡

1100.0%

596,400

6.6%

RetailTsurumi fuga 1 *1

9,578.60㎡

1

100.0%

145,200

1.6%

RetailCupo-la Main Bldg.

5,963.00㎡

1

100.0%＊3＊3

RetailJPR Musashikosugi Bldg.

19,740.95㎡

1

100.0%＊3＊3

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Japan Prime Realty Investment Corporation

Area

Type
OfficeOfficeOfficeOther
CitiesNiigata Ekinan Center
Bldg.
Meiji Yasuda-Life Osaka
Umeda Bldg.
Tokyo Tatemono
Honmachi Bldg.

Leasable Area

# of
Rental Revenue
Occupancy% of Total
Tenants(yen in thousands)

5,205.82㎡

11

100.0%

132,0551.5%

9,600.49㎡

28

98.9%

374,0414.1%

7,210.25㎡

9

97.3%

246,197

2.7%

OfficeJPR Takamatsu Bldg. *2

5,037.05㎡

29

89.6%

88,261

1.0%

OfficeJPR Hakata Bldg.

6,581.15㎡

27

88.7%

143,208

1.6%

OfficeJPR Naha Bldg.

3,947.70㎡

17

95.5%

108,345

1.2%

OfficeNorth 33 Bldg.

6,642.98㎡

24

96.6%

167,242

1.8%

OfficeSompo Japan Sendai Bldg.

7,118.60㎡

17

99.9%

205,120

2.3%

OfficeSompo Japan Wakayama
Bldg.

4,874.91㎡

16

96.6%

119,363

1.3%

OfficeTenjin 121 Bldg.

3,292.02㎡

15

100.0%

114,546

1.3%

OfficeJPR Nagoya Sakae Bldg.

5,461.90㎡

21

100.0%

234,186

2.6%

OfficeJPR Dojima Bldg.

3,941.40㎡

11

100.0%

134,788

1.5%

OfficeJPR Hakata-chuo Bldg.

3,349.57㎡

6

100.0%

89,532

1.0%

OfficeUFJ Central Leasing
Head Office Bldg.

7,123.07㎡

1

100.0%

193,291

2.1%

RetailJPR Umeda Loft Bldg.

18,586.97㎡

1

100.0%

402,423

4.4%

Retail

Shtrasse Ichibancho

2,861.91㎡

1

100.0%

128,3881.4%

5,303.98㎡

1

100.0%＊3＊3

35,444.13㎡

1

100.0%＊3＊3

2,484.39㎡

8

100.0%

94,715

1.0%

337,382.05㎡

479

98.6%

9,056,584

100.0%

RetailRetailRetailTotal

Property Name

Benetton Shinsaibashi
Bldg.
Housing Design Center
Kobe
Chayamachi Grande Bldg.

*1,*2 JPR concluded a contract to sell Tsurumi fuga 1 and JPR Takamatsu Bldg. with the following terms:
Contract Date
July 26, 2006
Sale Price¥5,800 million
Settlement Date
April 11, 2007 (planned)
Expected Profit¥539 million (planned)*3
Buildings leased to a single tenant. JPR was unable to obtain tenants’ approval to disclose rental information.

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Japan Prime Realty Investment Corporation

Disclaimer
This document contains a translation of selected information described in the Financial Report (Kessan Tanshin) dated
February 19, 2007 and prepared under the timely disclosure requirements of the Tokyo Stock Exchange, as well as the
Financial Statements and Performance Information Report written pursuant to the Investment Trust Law of Japan,
for the period from July 1, 2006 to December 31, 2006 of Japan Prime Realty Investment Corporation (JPR).
This English language document was provided solely for the convenience of and reference by non-Japanese investors
and is not intended to constitute a disclosure document. The Japanese language Financial Report, Financial
Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey
precisely identical concepts of the equivalent Japanese terms. The figures presented in the financial statements andother data including real estate portfolio details may differ from the Company’s Business Reports due to rounding.
With respect to any and all terms herein, including without limitation, financial statements, if there exist any
discrepancies in the meaning or interpretation thereof between the original Japanese documents and English
documents contained herein, the original Japanese documents will govern the meaning and interpretation. Neither
JPR, Tokyo Realty Investment Management, Inc. nor any of their respective directors, officers, employees, partners,
shareholders, agents or affiliates will be responsible or liable for the completeness, appropriateness or accuracy ofEnglish translations or the selection of the portion(s) of any document(s) translated into English. No person has beenauthorized to give any information or make any representations other than as contained in this document in relation
to the matters set out in this document, and if given or made, such information or representation must not be relied
upon as having been authorized by JPR, Tokyo Realty Investment Management, Inc. or any of their respective
directors, officers, employees, partners, shareholders, agents or affiliates.
The financial statements of JPR have been prepared in accordance with generally accepted accounting principles inJapan, which may materially differ in certain respects from generally accepted accounting principles in otherjurisdictions.
Many provisions of this document contain information that constitutes forward-looking statements. These
forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and various
factors may cause actual results to differ materially from those in the forward-looking statements.

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