Corporate Profile
Established on September 14, 2001, Japan Prime Realty Investment Corporation (JPR or theCompany) is a closed-end corporate fund that focuses on a geographically diverse investment
portfolio of office and retail properties. Through its investment activities, JPR has been awarded
high credit ratings from rating agencies, reflecting the Company's high-quality portfolio,
earnings stability and sound financial standing. As of June 30, 2008 JPR had an investment
portfolio totaling 275.10 billion yen on an acquisition basis, 537 tenants and 50 properties, andis recognized as one of the top diversified REITs in Japan.

Contents Investment Highlights

1

Message to Our Unitholders

2

Account Highlights

3

Investment Unit Status

4

New Acquisitions during the 13th Fiscal Period and After

5

Portfolio Topics

8

Property Portfolio

10

Overview of Portfolio Properties

16

Characteristics and Corporate History

23

Overview of the Asset Manager

25

Overview of Asset Management

27

Overview of Investment Corporation

34

Status of JPR's Assets under Management

35

Capital Expenditures of Owned Real Estate

39

Expenses and Liabilities

40

Acquisition and Sale during the 13th Fiscal Period

42

Overview of Accounting

44

Other

45

Balance Sheets

46

Statements of Income and Retained Earnings

48

Statements of Changes in Unitholders' Equity

49

Notes to Financial Statements

50

Report of Independent Auditors

56

Statements of Cash Flows (Information Only)57

JPR Investment Policies (Reference)

59

Investor Information

68

Investment Highlights
Portfolio Overview
・Top-ranked diversified J-REIT・Focusing on high-quality office buildings and high-profile retail properties
・Sponsored by major real estate developers, a general contractor, etc.

Growth Strategies
・Selective investment in properties with strong potential using diversified acquisition methods
・Leverage sponsor pipeline
・Focus on acquiring additional properties from Tokyo Tatemono, a main sponsor
・Focus on incorporating development projects in which Taisei Corporation, a sponsor,
participates
・Seek growth through rent hikes
・Continue prudent financial strategy that can effectively handle changes in the financial
environment

Management View
・Targets・Put more emphasis on improvement of portfolio quality with achievementsof 300 billion yen on a contracted basis
・Raise cash distribution per unit

1Message to Our Unitholders
We are delighted to have this opportunity to provide an overview of the asset management andfinancial results of Japan Prime Realty Investment Corporation (JPR) for its 13th fiscal period(January 1, 2008 – June 30, 2008).
The JPR portfolio grew to 50 properties, or 275.1 billion yen on an acquisition basis, this fiscal
period. This was due to the acquisition of Shinjuku Center Building and the additional acquisition in
Shinjuku San-chome East Building for a total of 23.2 billion yen.
As for financing, JPR continued to secure a stable financial status by issuing 3 billion yen unsecured
corporate bonds, with a maturity of 3 years, in May 2008.
As for our financial results, we posted operating revenues of 10,830 million yen and recurring profitsof 4,452 million yen primarily due to the full-period operations of properties acquired during theprevious fiscal period, as well as the contribution of properties acquired during the 13th fiscal period
and enhanced revenue-generating capabilities of existing properties. These efforts and performances
led to net income for the 13th fiscal period of 4,451 million yen.
As a result, the cash distribution per unit surpassed 7,000 yen for the first time and was set at 7,122
yen.
Our expectations are that the environment surrounding the industry will continue to be severe.
JPR will continue working with our asset manager, Tokyo Realty Investment Management, to realize
stable growth over the medium to long term through a continued emphasis on a careful selection ofproperties to be acquired while maintaining a consistent focus on compliance.
We ask for your continued understanding and support of our operations.

Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation2

Account Highlights(All amounts in millions of yen unless otherwise stated)
9th Fiscal Period
endedJune 2006

10th Fiscal Period
ended
December 2006

11th Fiscal Period
endedJune 2007

12th Fiscal Period
ended
December 2007

13th Fiscal Period
endedJune 2008

Operating revenues

8,588

9,088

10,056

10,44910,830Recurring profits

3,450

3,643

4,373

4,170

4,452

Net income

3,449

3,642

4,372

4,169

4,451

Total cash distributions

3,449

3,642

4,372

4,169

4,451

Total assets

231,523

244,691

271,398

278,842

303,459

Total unitholders' equity

118,881

119,074

161,098

160,895

161,177

51.3%

48.7%

59.4%

57.7%

53.1%

Unitholders' equity per unit (yen)224,304

224,668

257,757

257,432

257,883

Cash distribution per unit (yen)

6,509

6,873

6,996

6,671

7,122

Equity ratio

Operating Revenues and Net Income

12,000Total Assets and Total Unitholders' Equity

35,000Cash Distribution per Unit

8,000

30,000
9,000

6,000

25,00020,000
4,000

6,000
15,00010,000
2,000

3,000
5,000

0
9th
10th
11th
12th
13th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

0
9th
10th
11th
12th
13th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Operating revenues (million yen)

Total assets (million yen)

Net income (million yen)

Total unitholders' equity (million yen)

9th
10th
11th
12th
13th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Cash distribution (yen)3Investment Unit Status
Historical Unit Price
Trading Volume (units)
Unit Price (yen)Trading
VolumeUnit
Price580,000

16,000

As of August 8, 2008
Market capitalization: ¥161.8 billion
High: ¥564,000 (May 7, 2007)
Low: ¥199,000 (June 14, 2002)
Unit price at end of 13th Fiscal Period: ¥314,000 (June 30, 2008)

14,00012,000530,000

PO
Offering: ￥449,820

480,000

10,000430,000

8,000

380,000
330,000

6,000
PO
Offering: ￥272,440

4,000

280,000

PO
Offering: ￥237,160

2,000
0
J
e 14 uly 1
, 20
02

Jun

ListedTokyo Stock Exchange
Offering: ￥200,000
July
Jan
July
Jan
. 5,
. 6,
1
1
200
200
4
3

Jan

. 4,

200

5

July

1

Jan

. 4,

230,000

200

6

July

1

Jan

. 4,

200

7

July

1

180,000
A. 4, ug. 8
200
8

Jan

(Note) Unit prices are based on closing prices.

Breakdown of Unitholders at End of Period

Number ofUnitholders

Units

28,000700,000

600,000

500,000

530,000 units

530,000 units

10.72%
56,832 units

9.61%
50,975 units

13.96%
74,030 units

13.84%
73,381 units

625,000 units

625,000 units

625,000 units

8.43%
52,723 units

7.26%
45,388 units

7.05%
44,118 units

11.93%
74,598 units

11.78%
73,686 units

11.84%
74,057 units
20,00022.10%
138,141units

24.42%
152,632 units

24.57%
153,613 units
16,000400,000
12.38%
65,647 units

13.57%
71,947 units
12,000300,000

8,000

200,000
62.92%
333,491 units

62.96%
333,697 units

57.52%
359,538 units

56.52%
353,294 units56.51%
353,212 units
4,000

100,000

0

9th Fiscal Period

10th Fiscal Period

Financial Institutions(including securities firms)

4

24,000ForeignInvestors

11th Fiscal Period
Other Domestic
Corporations(Note) The composition ratio is rounded to two decimal places.

12th Fiscal Period
Individuals

13th Fiscal Period0

Number of Individual
Investors

New Acquisitions during the 13th Fiscal Period and After
Properties Acquired in the 13th Fiscal Period

A 14

Shinjuku Center Building

Location

Shinjuku Ward, Tokyo

Acquisition Date

March 27, 2008

Acquisition Price￥21,000 million

Site Area

14,917.11m

2

Total Floor Space

176,607.89m

2Floors

Structure

SRC/RC/S
CompletedB5/54F

October 1979

A 4

Shinjuku Sanchome East Building (additional ownership)

Location

Shinjuku Ward, Tokyo

Acquisition Date

April 24, 2008

Acquisition Price￥2,200 million

Site Area

2,578.69m

2

Total Floor Space

24,617.65m

2Structure

S/SRC/RC

Completed

FloorsB3/14F

January 2007

5

Properties to be Acquired in the 14th Fiscal Period
Minami Azabu Building

Location

Yurakucho Ekimae Building(Yurakucho Itocia)

A 15

Minato Ward, Tokyo

Location

Chiyoda Ward, Tokyo

Acquisition Date

July 14, 2008

Acquisition Date

August 27, 2008

Acquisition Price￥3,760 million

Acquisition Price￥3,400 million

Site Area
Total Floor Space

778.09m

2

4,570.63m

2S

Structure

9F

FloorsCompleted

Shinagawa Canal Building

June 1992

Site Area
Total Floor Space
Structure
FloorsCompleted

6,808.12m

271,957.65m

2

S/SRS
B4/20F
October 2007

A

Location

Minato Ward, Tokyo

Acquisition Date

December 2008(Planned)

Acquisition Price￥1,870 million

Site Area
Total Floor Space
Structure
FloorsCompleted

6

A 5

828.82m

25,446.77m

2

S
B1/8F
July 2008

Property to be Acquired in the 15th Fiscal Period
KM Fukugo Bldg.(tentative name)Location

Property to be Acquired in the 17th Fiscal Period
Sendagaya Yonchome Building(tentative name)

C

Osaka City, OsakaA

Shibuya Ward, Tokyo

Location

Acquisition Date

March 2009(Planned)

Acquisition Date

May 2010(Planned)

Acquisition Price￥9,250 million

Acquisition Price￥15,050 million(Note)

Site Area
Total Floor Space
Structure
FloorsCompleted

5,138.40m

280,309.87m

2RC

Site Area

2,217.49m

Total Floor Space

8,146.53m

2

2S

Structure

B1/54F

8F

FloorsMarch 2009 (Planned)

May 2009 (planned)

Completed

Note: In the event profitability improves as a vesult of efforts by the seller
to attract tenants, etc. the acquisition price is subject to revisionat the maximum of 16,500 million yen based on a predetermined
formula.

Preferred Securities acquired in the 12th Fiscal Period and to be Acquired in the 15th and 17th Fiscal Periods
Meieki Nichome Kaihatsu TMK (SPC) Preferred Securities
Acquisition Date

Investment
AmountAcquisition Price(planned)(thousand yen)Preferred Equity
Ration (%) (Note 1)

November 9, 2007

6,120

340,000

3

May 2009 (planned)

24,4801,643,000

12April 2010 (planned)

51,000TBD

25Location
Site Area
Total Floor Space
Structure
FloorsCompleted

Nagoya City, Aichi
7,463.10m (Note2)249,788.45m (Note3)
2S
B1/24F
April 2009 (Planned)

Note 1: Figures indicated is the preferred equity ration after the additional capital contribution is made planned on April 2009.
The preferred equity ration as of the end of the 12th Fiscal Period is 4.63%.
2: The site area is owned separately by the SPC and other owner. The above area indicates the total site area of the office building being developed.
3: The total floor area indicates the figure based on recent area table. In addition, total floor area indicates that of the entire building.

7

Portfolio Topics
Portfolio Growth
Occupancy rate (%)

100.0
90.0

Total acquisition
price (billion yen)

320
280

Total acquisition priceTotal leasable floor space

240
200
160
120
80
40
0

End ofNov.
2001

End ofJun.
2002

End ofDec.
2002

End ofJun.
2003

End ofJun.
2004

End ofDec.
2004

Total acquisition
price (billion yen)

40.73

92.18

94.59

125.79139.64163.65179.62

Total leasable
floor space (m2 )

94,935.49

162,739.50

168,987.78

201,808.72

218,734.67

256,329.13

273,330.52

Occupancy rate
(%)

96.3

94.1

93.4

93.5

92.7

93.2

95.1

Properties

13

25

27

30

32

38

42

Total numberof tenants

133

281

311

324

357

437

496

(Note 1)

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

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

Portfolio Diversification by Region
Value breakdown by acquisition price

Other Cities

Tokyo CBDs

28.7%
43.0%
( ￥78,977 million)( ￥118,201million)

Greater Tokyo

Tokyo CBDs

Value breakdownby monthly rental revenue at period end
Tokyo CBDs

Other Cities

29.6%( ￥505 million)

37.9%

)

65.0%

(138,319.31 m 2)

Tokyo CBDs

24.3%

(91,888.47 m 2)
Greater Tokyo

39.2%(148,535.02 m 2 )Office buildings

Value breakdownby monthly rental revenue at period end

Retail properties
Value breakdownby leased floor space at period end

Retail properties

Retail properties( ￥96,185 million

36.5%( ￥554 million)

Portfolio Diversification by Asset Class

35.0%

)

Other Cities

Value breakdownby leased floor space at period end

32.5%( ￥77,931 million)

Value breakdown by acquisition priceGreater Tokyo

Other Cities( ￥647 million

Greater Tokyo

28.3%

28.0%
Office buildings( ￥178,924 million)

8

End ofDec.
2003( ￥478 million)

72.0%

Retail properties

Office buildings( ￥1,228 million)

43.0%(162,773.63 m 2 )Office buildings

57.0%(215,969.27 m 2 )Total leasable
floor space (m2)

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000End ofJun.
2005

End ofDec.
2005

End ofJun.
2006

End ofDec.
2006

End ofJun.
2007

End of
Dec.
2007

0

End ofJun.
2008

197.65202.66209.22222.48245.39251.90275.10281,408.97

308,205.26

315,156.84

337,382.05

361,574.77

373,609.99

383,491.03

95.4

97.2

98.0

98.6

99.0

98.4

97.5

42

42

44

46

48

49

50

459

441

462

479

491

517

537

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

Major Tenants(As of June 30, 2008)

Tenant＃Name of Property

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

1

ABC Development Corporation

Housing Design Center Kobe

35,444.13

9.4%

2

The Seiyu, Ltd.

Tanashi ASTA

31,121.71

8.2%

3

Tokyo Tatemono Co., Ltd.

Shinjuku Center Building,
Arca East, Kawasaki Dice Bldg.

22,181.66

5.9%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

5.2%

5The Loft Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.9%

6

Shinjuku Square Tower Management Co., Ltd. Shinjuku Square Tower

11,096.96

2.9%

7

Olympic Corporation

Musashiurawa Shopping Square

9,558.51

2.5%

8

Tower Records Japan, Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

2.1%

7,287.86

1.9%

7,040.22

1.9%

9

Mitsubishi UFJ Lease & Finance Co., Ltd.

10

Sompo Japan Insurance Inc.

JPR Chiba Bldg.,
Mitsubishi UFJ Lease &Finance Nagoya Head
Office Bldg.
Kawaguchi Center Bldg.,
Yume-ooka Office Tower
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.

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

9

Property Portfolio

A Tokyo CBDs

Ueno

B-7

Shinjuku Ward

A-14
A-11

Shinjuku

A-12
A-4

A-5
A-9 Chiyoda
Ward
A-4

IchigayaA-

Shibuya Ward

B-1

Tokyo

Harajuku

A-3

A-5

A-1

ShibuyaMinato Ward

A-2

Tamachi

A-15

A-6

A-7
Ohsaki

A-10

A-3

A-13
A-1
A-8
Chuo Ward A-2

A-1 Kanematsu Bldg.

A-13 Across Shinkawa Bldg. Annex

A-2 Kanematsu Bldg. Annex

A-14 Shinjuku Center Bldg.

A-3 JPR Ningyo-cho Bldg.

A-15 Minami Azabu Bldg.

A-4 Shin-Kojimachi Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-5 JPR Crest Takebashi Bldg.

A-2

JPR Daikanyama

A-6 MS Shibaura Bldg.

A-3

JPR Jingumae 432

A-7 Gotanda First Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-8 Fukuoka Bldg.

A-5

Yurakucho Ekimae Bldg.
(Yurakucho Irocia)
14th Fiscal Period Acquisition (Planned)
Shinagawa Canal Bldg. *AA-10 Oval Court Ohsaki Mark West

Shinagawa

GotandaKinshicho

A-9 JPR Ichigaya Bldg.

A-

A-11 Shinjuku Square Tower
A-12 BYGS Shinjuku Bldg.

Shinagawa Ward

17th Fiscal Period Acquisition (Planned)
Sendagaya Yonchome Bldg.
A-(tentative name)* Shinagawa Canal Building is the new name for the former Konan Nichome Building (tentative name).
The name change took place on March 19, 2008.

B-5

Minamiurawa

Musashiurawa

B Greater Tokyo

Kawaguchi

B-6
B-3

SAITAMA

B-8

TOKYO
Tanashi

Ikebukuro

B-1

CHIBA

B-9 Ueno
B-7 B-1

Shinjuku

TachikawaTokyo

Kinshicho

ShibuyaChiba

B-2

ShinagawaMusashikosugi

B-4
KANAGAWA

B-5

KawasakiB-6

Shin-Yokohama
Yokohama
Nihon-Odori

B-10
10

B-3

Kamiooka

B-1 Arca East
B-2 JPR Chiba Bldg.
B-3 JPR Yokohama Nihon Odori Bldg.
B-5 Shinyokohama 2nd Center Bldg.
B-6 Kawaguchi Center Bldg.
B-7 JPR Ueno East Bldg.
B-8 Tachikawa Business Center Bldg.
B-9 Rise Arena Bldg.
B-10 Yume-ooka Office Tower
B-1 Tanashi ASTA
B-3 Cupo-la Main Bldg.
B-4 JPR Musashikosugi Bldg.
B-5 Musashiurawa Shopping Square
B-6 Kawasaki Dice Bldg.

C Other Cities

SAPPORO

C-1

Niigata Ekinan Center Bldg.

C-7

JPR Hakata Bldg.

C-9

JPR Naha Bldg.

C-10

C-10 NORTH 33 Bldg.
C-12 Sompo Japan Sendai Bldg.
C-13 Sompo Japan Wakayama Bldg.
C-14 Tenjin 121 Bldg.
C-16 JPR Nagoya Sakae Bldg.

SENDAI

C-18 JPR Hakata-chuo Bldg.
C-19 Mitsubishi UFJ Lease & Finance

C-12
C-2

NIIGATA

Nagoya Head Office Bldg.

C-1

C-2

Strasse Ichibancho

C-4

Housing Design Center Kobe

OSAKA
See below
KOBE

C-4

FUKUOKA

C-7
C-14
C-18

NAGOYA

C-16
C-19

WAKAYAMA

C-13

NAHA

C-9

C

C-1
Other Cities
C-5(Osaka City) Hankyu_Umeda

Chiyoda Ward
Chuo Ward
Minato Ward

Osaka

C-2

Tokyo CBDs
C-17
Kitahama

All other areas of Tokyo

CC-4

15th Fiscal Period Acquisition(Planned)
KM Fukugo Bldg.(tentative name)C-

Shinagawa Ward
Shibuya Ward

Yodoyabashi

C-2 Meiji Yasuda Life Osaka Umeda Bldg.
C-4 Tokyo Tatemono Honmachi Bldg.
C-17 JPR Dojima Bldg.
C-1 JPR Umeda Loft Bldg.
C-3 Benetton Shinsaibashi Bldg.
C-5 JPR Chayamachi Bldg.*

Shinjuku Wardand Chiba, Kanagawa andGreater Tokyo

Saitama Prefectures

HonmachiC-3
Shinsaibashi

Nanba

All other areas in Japan

Other Cities* JPR Chayamachi Bldg. is the new name for the former Chayamachi Grande Bldg.
The name change took place on January 1, 2008.

11

Location

Asset

Category

Class

Tokyo
CBDs

No.

Property Name

Location

Completed

Acquired

OfficeA-1

Kanematsu Bldg.

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

1989.122001.11

OfficeA-4

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

1984.10

2001.11
2002.112004.11

OfficeA-5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

1999.92002.6

OfficeA-6

MS Shibaura Bldg.

Minato Ward, Tokyo

1988.2

2003.3

1989.7

2003.7

OfficeA-7

Gotanda First Bldg.

Shinagawa Ward, Tokyo

OfficeA-8

Fukuoka Bldg.

Chuo Ward, Tokyo

1990.5

2003.10
2005.4

OfficeA-9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

1989.3

2004.5

OfficeA-10

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo

2001.6

2004.6

OfficeA-11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

1994.10

2004.7

OfficeA-12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1985.4

2004.112005.4

OfficeA-13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

1994.6

2004.11

OfficeA-14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1979.10

2008.3RetailA-1

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

1992.2

2003.6

RetailA-2

JPR Daikanyama

Shibuya Ward, Tokyo

2002.7

2004.10RetailA-3

JPR Jingumae 432

Shibuya Ward, Tokyo

2006.2

2006.3Retail

A-4

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

2007.1

2007.32008.4

OfficeB-1

Arca East

Sumida Ward, Tokyo

1997.3

2001.11

OfficeB-2

JPR Chiba Bldg.

Chiba City, Chiba

1991.1

2001.12

OfficeB-3

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa

1989.10

2001.11

OfficeB-5

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

1991.8

2002.9

OfficeB-6

Kawaguchi Center Bldg.

Kawaguchi City, Saitama

1994.2

2004.2

OfficeB-7

JPR Ueno East Bldg.

Taito Ward, Tokyo

1992.10

2004.3

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

1994.122005.92007.2

OfficeB-9

Rise Arena Bldg.

Toshima Ward, Tokyo

2007.1

2007.3

OfficeB-10

Yume-ooka Office Tower

Yokohama City, Kanagawa

1997.32007.7RetailB-1

Tanashi ASTA

Nishitokyo City, Tokyo

1995.2

2001.11RetailB-3

Cupo-la Main Bldg.

Kawaguchi City, Saitama

2006.1

2006.3Retail

B-4

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa

1983.32006.9Retail

B-5

Musashiurawa Shopping Square

Saitama City, Saitama

2005.10

2007.3

B-6

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

2003.82007.4

Subtotal (18 Properties)

GreaterTokyo

RetailSubtotal (14 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee and consumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) The ratio of proprietary ownership is shown on the deed for the land.
(4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of other sectional owners, etc. except forthefollowing properties:

12

MS Shibaura Building:
Shinjuku Square Tower:
Rise Arena Building:Cupo-la Main Bldg.:

The above site area indicates the area of the property and Trinity Shibaura that has been developed in an integrated manner
The above site area and total leasable floor space indicate the area of the entire redevelopment project
The above site area and total leasable floor space indicate the site area and floor space of the entire redevelopment project including the residential tower
The above site area indicates the area of the entire redevelopment project(5) Cupo-la Main Bldg. and JPR Musashikosugi Bldg. are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.

(As of June 30, 2008)

Acquisition

Percentage

Ownership

Site Area

Total Leasable

Occupancy

No. ofRentalPrice (1)of Total(3) (%)(m 2)

Floor Space

Rate (2)Tenants

Revenueof(millions(2)(m 2 )(thousands

Total (2)

(JPR's portion)of yen)of yen)Percentage

16,2765.9

79.4

1,751.13

7,994.02

100.0

8465,038

4.3

2,874

1.0

79.4

679.06

2,291.13

100.0

1109,601

1.0

2,100

0.8

100.0

550.06

2,791.88

100.0

4

107,555

1.0

100.0
100.0
100.0

11

75,051
32,087
12,198

0.7
0.3
0.1

2,420

0.9

77.3

657.802,105.44
901.36312.533,319.33

4,000

1.5

100.0

636.903,265.34

100.0

9143,301

1.3

11,2004.1

36.0

8,992.18

14,429.09

100.0

8

582,4195.4

1,551.19

4,243.58

100.0

2

139,327

1.3

100.0
100.0

1

64,667
41,468

0.6
0.4

2,920

1.1

61.8

2,920

1.1

21.8

1,302.17

1,250.06
687.34
1,937.40

5,100

1.9

100.0

1,058.04

4,186.09

100.0

9191,514

1.8

3,500

1.3

27.1

4,006.00

4,088.44

100.0

4

195,762

1.8

10,0003.6

29.3

8,409.52

10,982.03

96.5

22

319,454

2.9

11,8214.3

75.0

3,522.46

11,357.50

97.1

24

491,804

4.5

710

0.3

100.0

858.481,253.39

100.0

451,1350.5

21,0007.6

40.0

14,917.11

8,041.63

97.4

24

263,846

2.4

12,0004.4

100.0

1,010.47

8,076.85

100.0

1345,576

3.2

2,160

0.8

100.0

277.12653.9972.1

358,968

0.5

4,460

1.6

100.0

218.21

1,027.33

100.0

597,091

0.9

2,740

1.0

100.0

2,578.69

2,347.81

100.0

139,1660.4

118,201

43.0

5,880

2.1

41.1

3,755.01

7,022.76

100.0

6

296,516

2.7

2,350

0.9

100.0

1,382.35

5,566.59

89.1

29

137,059

1.3

2,927

1.1

100.0

1,100.59

6,066.53

100.0

12

143,648

1.3

920

0.3

50.0

841.712,641.19

100.0

13

75,586

0.7

8,100

2.9

86.5

4,524.61

15,461.98

98.5

39

486,508

4.5

3,250

1.2

100.0

1,242.97

6,512.45

90.9

8191,255

1.8

100.0

19

58,925102,527

0.5
0.9

92,286.83

3,188

1.1

46.6

2,047.22

1,747.13
2,980.90
4,728.03

5,831

2.1

15.9

9,377.28

6,023.39

100.0

1

238,836

2.2

6,510

2.4

19.7

12,011.00

12,009.75

94.5

35

324,244

3.0

10,2003.7

42.1

12,326.30

31,121.71

100.0

1

596,400

5.5

2,100

0.8

7.3

15,008.28

5,963.00

100.0

1(Note 5)(Note 5)

7,260

2.6

100.0

4,761.62

19,740.95

100.0

1

(Note 5)(Note 5)

4,335

1.6

50.0

8,317.99

14,960.69

100.0

3

129,061

1.2

15,0805.5

52.0

4,475.45

13,089.96

99.2

20

484,488

4.5

77,93128.3

89.9

150,908.98

13

Location

Asset

Category

Class

Other
CitiesNo.

Property Name

Location

Completed

Acquired

OfficeC-1

Niigata Ekinan Center Bldg.

Niigata City, Niigata

1996.3

2001.11

OfficeC-2

Meiji Yasuda Life Osaka Umeda Bldg.

Osaka City, Osaka

2000.6

2001.12

OfficeC-4

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

1970.2

2001.11

OfficeC-7

JPR Hakata Bldg.

Fukuoka City, Fukuoka

1985.6

2001.11

OfficeC-9

JPR Naha Bldg.

Naha City, Okinawa

1991.10

2001.11

OfficeC-10

NORTH 33 Bldg.

Sapporo City, Hokkaido

1992.2

2002.6

OfficeC-12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

1997.12

2002.6

OfficeC-13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

1996.7

2002.6

OfficeC-14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

2000.7

2002.6

OfficeC-16

JPR Nagoya Sakae Bldg.

Nagoya City, Aichi

2003.1
1986.122003.9

OfficeC-17

JPR Dojima Bldg.

Osaka City, Osaka

1993.10

2004.1

OfficeC-18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

1993.2

2004.6

OfficeC-19

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City, Aichi

1991.32005.3RetailC-1

JPR Umeda Loft Bldg.

Osaka City, Osaka

1990.4

2003.5-7

RetailC-2

Strasse Ichibancho

Sendai City, Miyagi

2002.10

2005.2RetailC-3

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

2003.2

2005.5RetailC-4

Housing Design Center Kobe

Kobe City, Hyogo

1994.6

2005.9RetailC-5

JPR Chayamachi Bldg.

Osaka City, Osaka

1994.6

2006.8Subtotal (18 Properties)

B Building
P ParkingTotal (50 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee and consumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) The ratio of proprietary ownership is shown on the deed for the land.
(4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of other sectional owners, etc. except forthefollowing properties:
The above site area indicates the area of the property and Trinity Shibaura that has been developed in an integrated manner
MS Shibaura Building:
Shinjuku Square Tower: The above site area and total leasable floor space indicate the area of the entire redevelopment project
The above site area and total leasable floor space indicate the site area and floor space of the entire redevelopment project including the residential tower
Rise Arena Building:
The above site area indicates the area of the entire redevelopment projectCupo-la Main Bldg.:(5) The Benetton Shinsaibashi Bldg. and the Housing Design Center Kobe are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.

14

(As of June 30, 2008)

Percentage

Acquisition

Percentage

Ownership

Site Area

Total Leasable

Occupancy

No. ofRentalPrice (1)of Total(3) (%)(m 2)

Floor Space

Rate (2)Tenants

Revenueof(millions(2)(m 2 )(thousands

Total (2)

(JPR's portion)of yen)of yen)
2,140

0.8

52.7

2,706.99

5,205.78

98.2

10

132,717

1.2

8,300

3.0

33.3

5,999.33

9,600.3798.4

27

378,506

3.5

4,150

1.5

64.3

1,432.64

7,210.25

98.7

9244,289

2.3

2,900

1.1

100.0

1,214.63

6,581.15

97.7

27

162,084

1.5

1,560

0.6

100.0

959.87

3,947.70

97.6

18

111,018

1.0

3,700

1.3

100.0

1,382.12

6,642.98

98.9

26

168,444

1.6

3,150

1.1

100.0

1,895.67

7,118.60

100.0

16

206,879

1.9

1,670

0.6

100.0

1,128.45

4,874.91

91.6

16

117,987

1.1

2,810

1.0

52.2

1,164.39

3,281.12

100.0

13

119,990

1.1

4,550

1.7

100.0

992.31

5,461.90

100.0

21

225,190

2.1

2,140

0.8

100.0

668.11

3,941.40

83.4

8

115,999

1.1

1,920

0.7

100.0

680.63

3,349.57

92.5

5

85,291

0.8

4,137

1.5

100.0

1,610.38

7,123.07

100.0

1

190,8631.8

13,0004.7

100.0

3,518.68

18,586.97

100.0

1

402,411

3.7

4,200

1.5

100.0

648.81

4,136.95

0.0

0221,089

2.0

5,430

2.0

100.0

609.315,303.98

100.0

1(Note 5)(Note 5)

7,220

2.6

100.0

3,994.47

35,444.13

100.0

1

(Note 5)(Note 5)

6,000

2.2

100.0

592.452,484.39

100.0

8138,213

1.3

78,97728.7

140,295.22

275,109

100.0

383,491.03

97.5

537

10,830,941

100.0

15

Overview of Portfolio Properties

Properties acquired in the 13th Fiscal Period are on page 5

A 1

Kanematsu Bldg.

A 2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥16,276 million
1,751.13m￥2,874 million

Total Floor Space

4,351.46m

14,995.09m

22Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/13F
February 1993

A 3

JPR Ningyo-cho Bldg.

SRC B1/8F

February 1993

A 4

Shin-Kojimachi Bldg.

Chuo Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,100 million
550.06m￥2,420 million

Total Floor Space

5,152.98m

4,117.70m

22Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B1/8F

December 1989

A 5

JPR Crest Takebashi Bldg.

A 6
Minato Ward, Tokyo
Acquisition Price

Site Area

Site Area￥11,200 million￥4,000 million
636.90m

8,992.18m

2

2

Total Floor Space

31,020.21m

4,790.68m

2Completed

SRC/RC/S B2/13F

SRC B1/9F

A 7

Gotanda First Bldg.

2

Structure/Floors
Completed

September 1999

February 1988

A 8

Fukuoka Bldg.

Shinagawa Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,920 million
1,551.19m￥2,920 million

2

Total Floor Space

10,553.34m

1,302.17m

2

Total Floor Space

11,627.74m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B2/11F

16

October 1984

Acquisition Price

Structure/Floors

SRC B1/9F

MS Shibaura Bldg.

Chiyoda Ward, Tokyo

Total Floor Space

657.80m2

2

Total Floor Space

679.06m

2

2

Total Floor Space

July 1989

2

SRC B2/10F
May 1990

A 9

JPR Ichigaya Bldg.

A 10

Oval Court Ohsaki Mark West

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥5,100 million
1,058.04m￥3,500 million
4,006.00m

2

2

Total Floor Space

Total Floor Space

28,575.80m

5,888.82m

22Structure/Floors
Completed

Structure/Floors

SRC B1/9F

Completed

March 1989

A 11

Shinjuku Square Tower

S/SRC B2/17F
June 2001

A 12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price￥10,000 million

Site Area

8,409.52m

2(entire redevelopment project)

Total Floor Space

78,796.00m

2Acquisition Price￥11,821 million

Site Area

3,522.46m

2

Total Floor Space

25,733.10m(entire redevelopment project)

Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B4/30F

SRC B2/14F
April 1985

October 1994

JPR Shibuya Tower Records Bldg.

A 13

Across Shinkawa Bldg. Annex

A(Retail)

Chuo Ward, Tokyo

Acquisition Price

Site Area

Site Area￥710 million
858.48m￥12,000 million
1,010.47m

2

25,535.90m

Total Floor Space

8,449.56m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/10F
June 1994A

JPR Daikanyama (Retail)2￥2,160 million

Structure/Floors
CompletedFebruary 1992

A

3

Shibuya Ward, Tokyo

Acquisition Price

Total Floor Space2

SRC/S B3/8F

JPR Jingumae 432(Retail)Shibuya Ward, Tokyo

Site Area

1

Shibuya Ward, Tokyo

Acquisition Price

Total Floor Space2

277.12m

2668.09m2

RC B2/2F
July 2002

Acquisition Price
Site Area￥4,460 million
218.21m

2

Total Floor Space

1,066.81m

2Structure/Floors
Completed

S/SRC B1/7F

February 2006

17

A 4

Shinjuku Sanchome East Bldg. (Retail)Shinjuku Ward, Tokyo
Acquisition Price￥2,740 million

Site Area

2,578.69m

2

Total Floor Space

24,617.65m

2Structure/Floors

S/SRC/RC B3/14F

Completed

January 2007

B

Arca East

1

B

JPR Chiba Bldg.

Sumida Ward, Tokyo

Chiba City, Chiba

Acquisition Price

Acquisition Price

Site Area

Site Area￥5,880 million
3,755.01m￥2,350 million

234,281.86m

2

2

9,072.57m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B3/19F
March 1997

B

3

S/SRC B1/13F
January 1991

B

Shinyokohama 2nd Center Bldg.

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,927 million￥920 million

2

Total Floor Space

Total Floor Space

7,781.93m

29,146.52m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC B1/11F

October 1989

B 6

August 1991

B

7

Taito Ward, Tokyo

Acquisition Price
Site Area

S/SRC B2/12F

JPR Ueno East Bldg.

Kawaguchi City, Saitama

841.71m

2

1,100.59m

Kawaguchi Center Bldg.

5

Yokohama City, Kanagawa

Yokohama City, Kanagawa￥8,100 million
4,524.61m

Acquisition Price
Site Area￥3,250 million

Total Floor Space

28,420.85m

1,242.97m

2

2

Total Floor Space

8,490.44m

2

2

18

1,382.35m

Total Floor Space

Total Floor SpaceJPR Yokohama Nihon Odori Bldg.

2

Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/15F

February 1994

S/SRC B1/8F

October 1992

B

Tachikawa Business Center Bldg.

8

B 9

Rise Arena Bldg.

Toshima Ward, Tokyo

Tachikawa City, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥3,188 million
2,047.22m

2

Total Floor Space

14,706.36m

2￥5,831 million
9,377.28m

Total Floor Space
Structure/Floors

Completed

Completed

December 1994

Yume-ooka Office Tower

Yokohama City, Kanagawa

January 2007

B

1

Nishitokyo City, Tokyo

Acquisition Price￥6,510 million
12,011.00m

2Total Floor Space

185,974.87m

2Acquisition Price￥10,200 million

Site Area

12,326.30m

2

Total Floor Space

80,675.27m

Structure/Floors

Structure/Floors

Completed

Completed

S/SRC/RC B3/27F
March 1997

Cupo-la Main Bldg. (Retail)2

RC/SRC/S B3/42F

Tanashi ASTA (Retail)B 10

Site Area

91,280.94m（including residential tower)

Structure/Floors

S/SRC B1/12F

2（entire redevelopment project)

B 3

SRC B2/17F

February 1995

B

JPR Musashikosugi Bldg. (Retail)Kawaguchi City, Saitama

2

4

Kawasaki City, Kanagawa

Acquisition Price
Site Area￥2,100 million
15,008.28m

2（entire redevelopment project)

Total Floor Space

48,321.96m

Acquisition Price
Site Area￥7,260 million
4,761.62m

2

Total Floor Space

18,394.32m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC/S B1/6F

S/RC/SRC B2/10F
January 2006

Musashiurawa Shopping Square

B(Retail)March 1983

Kawasaki Dice Bldg. (Retail)5

Saitama City, Saitama

B

Acquisition Price

Site Area

Site Area￥4,335 million
8,317.99m￥15,080 million

2

Structure/Floors
Completed

28,930.36m

2

S B1/4F

October 2005

6

Kawasaki City, Kanagawa

Acquisition Price

Total Floor Space2

4,475.45m

2

Total Floor Space
Structure/Floors

36,902.01m

2S/SRC/RC B2/11F

Completed

August 2003

19

C

Niigata Ekinan Center Bldg.

Meiji Yasuda Life Osaka Umeda Bldg. C

1

Osaka City, Osaka

Niigata City, Niigata
Acquisition Price

Acquisition Price

Site Area

Site Area￥2,140 million
2,706.99m￥8,300 million
5,999.33m

2

2

Total Floor Space

Total Floor Space

52,982.94m

19,950.42m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B1/10F
March 1996

Tokyo Tatemono Honmachi Bldg. C

4C

Acquisition Price

Site Area

Site Area￥4,150 million
1,432.64m￥2,900 million
1,214.63m

22Completed

Total Floor Space

9,828.73m

2

S/RC B1/12F

Completed

June 1985

February 1970

C

9

C 10

NORTH 33 Bldg.

Naha City, Okinawa

Sapporo City, Hokkaido

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,560 million
959.87m￥3,700 million
1,382.12m

2

2

Total Floor Space

5,780.71m

Structure/Floors
Completed

October 1991

C 12

Sompo Japan Sendai Bldg.

Total Floor Space

10,568.23m

2

SRC/S 12F

Completed

SRC B1/12F

February 1992

C 13

Wakayama City, Wakayama

Acquisition Price

Acquisition Price

Site Area

Site Area￥3,150 million
1,895.67m

2

Total Floor Space

10,783.52m

2￥1,670 million
1,128.45m

2

Total Floor Space

6,715.07m

Structure/Floors

Structure/Floors

Completed

Completed

SRC B1/12F

December 1997

2

Structure/Floors

Sompo Japan Wakayama Bldg.

Sendai City, Miyagi

2Structure/Floors

SRC B3/9F

JPR Naha Bldg.

7

Fukuoka City, Fukuoka

14,619.52m

20June 2000

Acquisition Price

Total Floor Space

2

S/SRC B2/31F

JPR Hakata Bldg.

Osaka City, Osaka

Structure/Floors

2

2

S 9F
July 1996

C 14

Tenjin 121 Bldg.

C 16

JPR Nagoya Sakae Bldg.

Fukuoka City, Fukuoka

Nagoya City, Aichi
Acquisition Price￥4,550 million

Acquisition Price
Site Area

Site Area￥2,810 million

2

1,164.39m
8,690.95m

Structure/Floors
Building
Parking

Total Floor Space
Structure/Floors

2

S/SRC 13F

Completed

7,340.18m

Completed
Building
Parking

July 2000

C 17

JPR Dojima Bldg.Bldg.

2

S/ B1/11F
S 1F

January 2003
December 1986

C 18

JPR Hakata-Chuo Bldg.

Osaka City, Osaka

Fukuoka City, Fukuoka

Acquisition Price
Site Area

992.31m

Total Floor Space2￥2,140 million
668.11m

Acquisition Price
Site Area￥1,920 million

Total Floor Space

5,696.01m

Total Floor Space

3,874.81m

22Structure/Floors
Completed

SRC B2/9F

October 1993

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

C 19

Structure/Floors
Completed

SRC 8F

February 1993C

JPR Umeda Loft Bldg. (Retail)

Nagoya City, Aichi

Acquisition Price

Site Area

Site Area￥4,137 million
1,610.38m

2

10,201.44m

Structure/Floors
Completed

2

SRC B1/9F

March 1991

C

Strasse Ichibancho (Retail)2￥13,000 million
3,518.68m

2

Total Floor Space

17,897.56m

Structure/Floors
Completed

SRC B1/8F

April 1990

Acquisition Price

Site Area

Site Area￥4,200 million
648.81m￥5,430 million

3,445.80m

609.31m

2

2

Total Floor Space

5,303.98m

2Structure/Floors

Structure/Floors

Completed

Completed

October 2002

3

Osaka City, Osaka

Acquisition Price

RC/S B1/8F

2

Benetton Shinsaibashi Bldg. (Retail) C

Sendai City, Miyagi

Total Floor Space1

Osaka City, Osaka

Acquisition Price

Total Floor Space680.63m2

2

2

S B2/10F

February 2003

21

C

Housing Design Center Kobe (Retail)4

JPR Chayamachi Grande Bldg.(Retail) C

Kobe City, Hyogo

Osaka City, Osaka

Acquisition Price

Acquisition Price

Site Area

Site Area￥7,220 million
3,994.47m￥6,000 million
592.45m

2

Total Floor Space

33,877.71m

2

Total Floor Space

3,219.36m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/S B2/11F

22

5

June 1994

2

S/SRC 9F
June 1994

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

Corporate History
Date

Description

September 6, 2001

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

September 14, 2001

Japan Prime Realty Investment Corporation was established

November 16, 2001

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

January 22, 2002

Investment unit split (2.5 units for 1 existing unit)

June 14, 2002

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

23

Members of the Board (As of June 30, 2008)

Executive Officer

Hirohito Kaneko
Dec. 2001
Apr. 1979
Apr. 1977

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

Supervising Officer

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

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

Supervising Officer

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

24

Supervising Officer of Japan Prime Realty Investment Corporation
Director of Advicelink Co., Ltd. (currently held position)
Part-time auditor of Ulvex Inc. (currently held position)
Partner attorney at Spring Partners (former Okinobu, Ishihara & Sei Law Office) (currently held position)
Adjunct professor (part-time) at Keio University Faculty of Law (Civil law practice) (currently held position)
Part-time auditor of Kinkan Co., Ltd. (currently held position)
Partner of Okinobu, Ishihara & Sei Law Office
Okinobu, Ishihara & Sei Law Office (former Okinobu & Ishihara Law Office)Registered with Daiichi Tokyo Bar Association at Okinobu & Ishihara Law OfficeOverview of the Asset Manager
Corporate Profile
Name

Tokyo Realty Investment Management, Inc. (TRIM)

Core Business

Asset management for investment corporation

Capitalization

350 million yen

Shareholders

Tokyo Tatemono Co., Ltd. (26%)
Meiji Yasuda Life Insurance Company (24%)
Taisei Corporation (20%)
Yasuda Real Estate Co., Ltd. (20%)
Sompo Japan Insurance Inc. (10%)

History

April 28, 2000: Founded
October 13, 2000: Approved for real estate transaction service
March 16, 2001: Approved as discretionary transaction agent
June 20, 2001: Approved for asset management of investment corporation
September 30, 2007: Registered as investment management business
November 28, 2007: Applying for and submitting application form regarding Financial
Instruments and Exchange Law (investment management business)

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

Organization
Shareholders Meeting
Auditors
Board of Directors
CEO

Investment Committee

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

Investment Management
Division

ResearchGroup

Investment
Group

Asset
Management
Group

Corporate Plannig /Financial Division

FinancialGroup

Investor
RelationsGroup

Administration Division

FundManagement
Group

Corporate
Planning
Group

Accounting /HumanResouseGroup

TRIM's Decision-Making Process of Investment Management

The Investment Committee (including the Due Diligence Subcommittee) was established to make investment management
decisions and has the Investment Subcommittee and Fund Management Subcommittee below it. Members of thesecommittees and subcommittees include the CEO, CIO, CFO, CAO. However, regarding the Due Diligence Subcommittee, aCompliance Office General Manager is also included to enhance compliance in due diligence for the targeted investment
asset.
The Board of Directors is responsible for the targeted investment assets and policies. The Investment Committee
formulates management plans, while the Investment Subcommittee is in charge of decisions on issues regarding theacquisition and disposition of individual assets. The Fund Management Subcommittee is responsible for issues regarding
the management of individual assets. The Board of Directors is given the final decision-making powers on the acquisitionand disposition of individual assets greater than a certain value.

25

Directors of Tokyo Realty Investment Management, Inc.
President and Chief Executive Officer (CEO)Toshihiro Hagiwara

Mar. 2001 Resigned as Director of Tokyo Tatemono Co., Ltd.
Jan. 2001 Appointed as President and CEO, Tokyo Realty Investment Management, Inc.
Jan. 2001 Appointed as Director of Tokyo Tatemono Co., Ltd.
Apr. 1999 Appointed as Director and Head of Osaka Branch Office, Tokyo Tatemono Co., Ltd.
Jan. 1998 Appointed as Director and Head of Development Business Department of Kinshicho Project, Tokyo Tatemono Co., Ltd.
Mar. 1997 Appointed as Director and General Manager of Executive Secretariat and Personnel Departments, Tokyo Tatemono Co., Ltd.
Apr. 1992 Appointed as General Manager of Executive Secretariat and Personnel Departments, Tokyo Tatemono Co., Ltd.
Apr. 1989 Dispatched to JR East Urban Development Corporation
Apr. 1989 Appointed as Assistant General Manager of Urban Development Department, Tokyo Tatemono Co., Ltd.
Apr. 1968 Joined Tokyo Tatemono Co., Ltd. and assigned to the Osaka Branch OfficeDirector and Chief Administrative Officer (CAO)

Kazuo Kitami

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

Director and Chief Investment Officer (CIO)

Seiji Miwa

Mar. 2006 Appointed as Director and Chief Investment Officer, Tokyo Realty Investment Management, Inc.
Oct. 2004 Appointed as General Manager of Investment Management Division (responsible for Asset Management Group)
Jul. 2003 Dispatched to Tokyo Realty Investment Management, Inc.
Jan. 2000 Appointed as Group Leader of Investment Services Department, Tokyo Tatemono Co., Ltd.
Jul. 1998 Appointed as Manager, Investment Services Department
Apr. 1998 Appointed as Manager, Yokohama Development Department
Apr. 1995 Appointed as Assistant Manager of Yokohama Development Department
Apr. 1991 Appointed Assistant Manager of Development Department 1
Apr. 1989 Assigned to Development Department 1
Apr. 1983 Joined Tokyo Tatemono Co., Ltd. and assigned to Design Department

Director and Chief Financial Officer (CFO)

Yasuo Furuya

Jun. 2006 Appointed as Director and Chief Financial Officer, Tokyo Realty Investment Management, Inc.
Apr. 2006 Appointed as Chief Financial Officer
Apr. 2006 Dispatched to Tokyo Realty Investment Management, Inc.
Jan. 2004 Appointed as Manager of Risk Management Group, Investment Assessment Department, Meiji Yasuda Life Insurance
Company

Apr. 2000 Appointed as Manager of Investment Risk Management Section, Investment Management Department
Apr. 1999 Appointed as Manager of Investment Administration Section, Investment Planning & Research Department
Oct. 1998 Appointed as Manager of Investment Planning & Research Section, Investment Planning & Research Department
Apr. 1997 Appointed as Manager of Investment Administration Section, Investment Planning & Research Department
Apr. 1995 Appointed as Manager of Investment Planning & Research Department
Apr. 1993 Appointed as Manager of Fund Investment Office, Investment Securities Department
Apr. 1980 Joined Yasuda Mutual Life Insurance Company (currently Meiji Yasuda Life Insurance Company) and assigned to theTraining Institute, Education Division

26

Overview of Asset Management(1) Operational Performance of JPR

Unit

Operating Revenues

11th
10th
Fiscal Period Fiscal Period(July 1, 2006 - (Jan. 1, 2007 Dec. 31, 2006) June 30, 2007)

12th
Fiscal Period(July 1, 2007 Dec. 31, 2007)

13th
Fiscal Period(Jan. 1, 2008 June 30, 2008)

8,588

9,088

10,056

10,44910,830

8,552

9,056

9,496

10,415

10,830

35

31

30

34

4,564

4,714

4,948

5,443

5,550

Million yen

4,013

4,151

4,315

4,816

4,909

Operating Profits

Million yen

4,024

4,373

5,108

5,006

5,280

Recurring Profits

Million yen

3,450

3,643

4,373

4,170

4,452

Net Income

Million yen

3,449

3,642

4,372

4,169

4,451

Total Assets

Million yen

231,523

244,691

271,398

278,842

303,459(% Change)%(+2.5)(+5.7)(+10.9)(+2.7)(+8.8)

Interest-bearing Debt

Million yen

97,466

109,466

92,966

99,683

123,475

Total Unitholders' Equity

Million yen

118,881

119,074

161,098

160,895

161,177(+0.0)(+0.2)(+35.3)(−0.1)(+0.2)

Real estate rental revenues
Gain on sale of real estate

Million yen

Dividends received

Operating
Performance

9th
Fiscal Period(Jan. 1, 2006 June 30, 2006)

Operating Expenses
Real estate rental expenses

530

Loss on sale of real estate

Assets, etc.

(% Change)

Cash
Distribution
per Unit, etc.

%

Unitholders' CapitalMillion yen

115,431

115,431

156,725

156,725

156,725

Total Cash Distributions

4,451

Million yen

3,449

3,642

4,372

4,169

Dividend payment ratio

%

100.0

100.0

99.9

99.9

100.0

Number of Units Outstanding

Units

530,000

530,000

625,000

625,000

625,000

Total Unitholders' Equity per Unit

Yen

224,304

224,668

257,757

257,432

257,883

6,509

6,873

6,996

6,671

7,122

6,509

6,873

6,996

6,671

7,122

1.5

1.5

1.7

1.5

1.5

3.0

3.0

3.4

3.0

3.1

2.9

3.1

3.1

2.6

2.8

5.9

6.1

6.3

5.1

5.5

118,829

118,881

119,074

161,098

160,895

Cash Distribution per Unit
Distribution amount

Yen

Exceeding profit distribution amount

Recurring Profits on Total Assets (Note 1)
Annualized (Note 10)

Return on Total Unitholders' Equity (Note 2-1)
Annualized (Note 10)

Total unitholders' equity at beginning of
period (Note 2-2)
Unitholders' Equity Ratio at End of Period (Note 3)%%

Million yen%(Year-on-year increase/decrease)

Financial
IndicesInterest-Bearing Debt to Total Assets at End
of Period (Note 4)%

DSCR (Note 5)
Net income before interest
and amortization

Million yen

Interest paid (Notes 6)

NOI from Leasing (Note 7)
Annualized NOI yield (Notes 9 and 10)

NCF from Leasing (Note 8)
Annualized NCF yield (Notes 9 and 10)

Reference
Information

Million yen%
Million yen
%

51.3

48.7

59.4

57.7

53.1

(-1.3)(-2.7)(+10.7)(-1.7)(-4.6)

42.1

44.7

34.3

35.7

40.7

9.7

8.8

8.8

8.4

8.0

5,585

5,891

6,230

6,789

7,168

574

668

705

809

897

6,100

6,485

6,863

7,407

7,739

5.9

5.8

5.5

5.8

5.6

5,785

6,053

6,476

6,826

6,917
5.0

5.6

5.4

5.2

5.4

Properties Owned (Note 11)

44

46

48

49

50

Number of Tenants

462

479

491

517

537

Total Leasable Floor Spacem2

315,156.84

337,382.05

361,574.77

373,609.99

383,491.03

Occupancy Rate

%

98.0

98.6

99.0

98.4

97.5

(Note 1) Recurring profit / (total assets at beginning of period + total assets at end of period) / 2(Notes 2-1 and 2-2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period/total assets at end of period x 100(Note 4) Interest-bearing debt / total assets at end of period x 100(Note 5) Net income before interest and amortization (excluding gain or loss on sale of real estate) / interest paid
(Note 6) Interest paid in this table includes interest on corporate bonds(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from purchase price of property (9th fiscal period: ￥209.22 billion, 10th fiscal period: ￥222.48 billion, 11th fiscal period: ￥250.56 billion, 12th
fiscal period: ￥251.90 billion and 13th fiscal period: ￥275.10 billion)
Annualized NCF from leasing / purchase price of property(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 9th fiscal period: 181 days, 10th fiscal period: 184 days,
11th fiscal period: 181 days, 12th fiscal period: 184 days and 13th fiscal period: 182 days
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., BYGS Bldg., Shinjuku Sanchome East Bldg., Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at
multiple times but are calculated as one property.
(Note 12) In the event that the contracted area and the area based on which the rent is calculated differ, the situation was handled by making the latter the leased floor
space through the fiscal period ended December 2006. Since the period ended June 2007, the contracted area has been made the leased area.
(Note 13) Any ratio indicated on financial indices are rounded to the first decimal point (except for the dividend payment ratio, which is rounded off to the first decimal point.)27

(2) 12th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under theInvestment Trusts and Investment Corporations Law (hereafter, the Investment Trusts Law), and was listedon the Tokyo Stock Exchange Real Estate Investment Trust Section (securities code: 8955) on June 14,
2002, with 289,600 outstanding investment units. JPR made its third additional public offering in February
2007bringing the number of investment units issued and outstanding to 625,000 units. JPR has assigned
the asset management of its portfolio to Tokyo Realty Investment Management Inc., through which JPR aims
to maximize unitholder value by efficiently managing the portfolio of office buildings and retail properties.

2) Management Environment
The Office Building Leasing Market
A sense of uncertainty hangs over the future of the world economy, given the financial turmoil triggeredby the subprime issue, soaring raw material prices accompanying the inflow of capital into the commodity
market and resulting concerns of inflation. The outlook of the Japanese economy has also become
increasingly severe. Although the office market in Tokyo and major regional cities remained strong during
the fiscal period, it is difficult to make bullish forecasts for the future, considering the worsening businesssentiment and the changed tide to increasing vacancy rates.

The Retail Property Leasing Market
With a drifting sense of uncertainty over the future of the economy, the soaring raw material prices
are now impacting households, leading to a weakening tone in personal consumption. Under suchcircumstances, diverse changes have continued in the retail market in recent years, including reviewing of
nationwide expansion of stores and retreating from suburban stores, while the preference for urban storesstrengthened and demand rose for stores in good locations in the central parts of major cities.

The For-Sale Real Estate Market
The situation in the for-sale market has changed significantly in recent months, in accordance with thechanges in the financial environment both in Japan and abroad triggered by the subprime issue. The
market has seen a further acceleration in the polarization among the players depending on their fundraising capabilities.

3) Portfolio Management Status
New Property Acquisitions by JPR
JPR has continued to acquire properties based on a rigorous standard for selecting excellent office buildings
and retail properties that can generate stable cash flow and have the potential of future rent increases.
JPR's key strategy in expanding our portfolio has been to stabilize portfolio earnings and balance thediversification of the portfolio both in terms of location and asset class. JPR has been emphasizing theacquisition�of properties in Tokyo and 5 major cities (Osaka, Nagoya, Fukuoka, Sendai and Sapporo).
During the 13th fiscal period, we acquired Shinjuku Center Building (acquisition price of 21,000 million
yen) and Shinjuku Sanchome East Bldg. (additional acquisition at 2,200 million yen). As a result, thebalance of assets under management now totals 50 properties, or 275.1 billion yen on an acquisition pricebasis as of the end�of June 2008. The total leasable floor space is now 383,491.03m2 and the number oftenants is 537.
Entering the 14th fiscal period, JPR acquired Minami Azabu Building for 3,760 million yen on July 14, 2008,
and Yurakucho Ekimae Building (Yurakucho Itocia) for 3,400 million yen on August 27, 2008.
In addition, JPR focused on acquiring projects in development, and concluded a purchase agreement in
the 13th fiscal period for the Sendagaya Yonchome Building (tentative name), which is scheduled forcompletion in May 2009, at a planned acquisition price of 15,050 million yen. The planned acquisition dateis May 2010.

28

Operational Management of Portfolio
After enjoying continued favorable conditions in recent years, the office building leasing market has started
to sense some uncertainty regarding the future prospects. Under such circumstances, as in the previous
fiscal period, JPR has sought to firmly materialize internal growth of the overall portfolio by focusing on
measures to maintain high occupancy rates and enhance rents. During this fiscal period, JPR worked toraise contracted rents with new tenants and existing tenants at the time of renewal, while enhancing tenant
services.
Occupancy Rate
JPR improved the levels of the actual properties and services, by reflecting feedback from tenantsatisfaction surveys and other measures based on its brand strategy. As a result, JPR successfully
maintained an overall high occupancy rate of 97.5% for the portfolio at the end of the 13th fiscal period.
Rent Renewals
JPR has continuously sought increased rents upon the renewal of rental contracts mainly in Tokyo CBDsand Greater Tokyo with the objective of narrowing the gap with the rent levels of new rental contracts.
Consequently, JPR successfully achieved rent increases upon renewals of rental contracts in 63 cases at 15of its buildings this fiscal period.
Renovations
As part of its brand strategy that aims to enhance the asset values and improve tenant satisfaction, JPR has
been conducting construction to renew common areas at two properties and renovations of air conditioning
systems at three properties for individual control, better convenience and more comfort.

Fund Procurement
In the expansion of our portfolio, JPR continued to practice dynamic borrowings accompanying property
acquisitions during this fiscal period. Moreover, JPR has continued to maintain financial stability throughlong-term borrowings and new issuance of corporate bonds, with an eye on avoiding future interest rate
hike risks and being attentive to spreading out of repayment and redemption maturity dates.
As a result, the balance of total outstanding borrowings as of the end of the fiscal period was 68.975 billion
yen, with unsecured corporate bonds of 54.5 billion yen. With regards to JPR's overall interest-bearing
debt, the average interest rate as of the end of the fiscal period (Note 1) was 1.6%, the interest-bearing debt
ratio (Note 2) was 44.1% and the LTV (interest-bearing debt to total assets ratio) at the end of the period(Note 3) was 40.7%.
Of these, long-term interest-bearing debt with repayment or redemption periods of more than one year thatare hedged against risk of future interest rate hikes now comprises 88.0% of all interest-bearing debt andthe average maturity (Note 4) is 4.4 years. JPR has no current portion of long-term interest-bearing debt.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
In addition, on January 16, 2008, Standard and Poor’s (S&P) raised the issuer rating for JPR from A- to A forthe long-term rating and from A-2 to A-1 for the short-term rating.

Details of Corporate Credit Ratings as of June 30, 2008
Ratings Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

AA- (Stable)

Moody's Investor Services

A2 (Stable)

Standard & Poor's

Long-term: A (Stable)
Short-term: A-1(Note 1) Average interest is arrived at by calculating a weighted average of interest rates as of the end of the 13th fiscal period based on thebalance of each debt.
(Note 2) Interest-bearing debt ratio (%): interest-bearing debt/(interest-bearing debt + unitholders' capital) x 100 (unitholders' capital:
156.72 billion yen)
(Note 3) Interest-bearing debt to total assets ratio at end of period (%): interest-bearing debt/total assets at end of period x 100 (total assets
at the end of the 13th fiscal period: 303.45 billion yen)
(Note 4) Average maturity of long-term interest-bearing debt is arrived at by calculating a weighted average of maturities from the end of
the 13th fiscal period to the repayment deadlines for long-term interest-bearing debt with repayment periods of more than one
year, based on the balance of each debt.

29

(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. in the 12th fiscal period and prior to the 11th fiscal period.
Date

Number of Units Outstanding Unitholders' Capital (million yen)

Event

September 14, 2001 Established by private placement
November 16, 2001 Additional private placement

Balance

Remarks

Variation

Balance

Variation

240

240

120

120

(Note 1)62,00062,24031,00031,120(Note 2)January 22, 2002

Split of investment units

93,360155,600-

31,120(Note 3)June 14, 2002

Initial public offering

134,000

289,600

25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 2, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 2, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

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

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)

JPR was formed by the investment of three companies -- Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), andTokyo Realty Investment Management, Inc. (40 units) -- at 500,000 yen per unit.
(Note 2) An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in realestate trust and started management.
(Note 3) A single investment unit was split into 2.5 units.
(Note 4) New investment units were issued through public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to
repay short-term debt, finance the acquisition of new specific assets and the like.
(Note 5) New investment units were issued through public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 6) New investment units were issued through a third-party allotment at 228,859 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 7) New investment units were issued through public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to
repay short-term debt, acquire new specific assets, etc.
(Note 8) New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debt, acquire new
specific assets, etc.
(Note 9) New investment units were issued through public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to
repay debt, acquire new specific assets, etc.
(Note 10) New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debt, acquire new specific assets, etc.
(Note 1)

(4) Cash Distributions
Under the Special Taxation Measures Law of Japan, an investment corporation is allowed to deduct dividends ofprofits paid to investors from its taxable income. In order to have the maximum amount of dividend distribution
deducted, JPR decided to distribute all the retained earnings for the 13th fiscal period except for fractional
portions that make distributions per unit less than 1 yen. As a result, the cash distribution per unit for the 13th
fiscal period was set at 7,122 yen.
(Thousands of yen unless otherwise indicated)

Date
Retained Earnings at End of Period
Internal Reserves
Total Cash Distributions(cash distribution per unit)
Total Cash Distributions from Net Income(cash distribution from net income per unit)
Repayment of Paid-in Capital(repayment of paid-in capital per unit)

30

9th
Fiscal Period

10th
Fiscal Period

11th
Fiscal Period

12th
Fiscal Period

13th
Fiscal Period

3,449,967

3,642,765

4,372,752

4,169,727

4,451,575

197

75

252

352

325

3,449,770

3,642,690

4,372,500

4,169,375

4,451,250(6,509 yen)

(6,873 yen)

(6,996 yen)

(6,671 yen)

(7,122 yen)

3,449,770

3,642,690

4,372,500

4,169,375

4,451,250(6,509 yen)

(6,873 yen)

(6,996 yen)

(6,671 yen)

(7,122 yen)

(as ofJune 30, 2006)(as ofDecember 31,
2006)(as ofJune 30, 2007)(as ofDecember 31,
2007)(as ofJune 30, 2008)

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)5) Future Management Policy and Vital Issues
Steering the management of the portfolio is becoming increasingly difficult, faced with the prolonged
uncertainty over the future course of the Japanese economy, triggered by the subprime issue.
In terms of the office leasing market, we need to carefully discern how the worsened business sentimentimpacts the demand for office space. For the moment, demand for office space still remains high. However,
we will be required to make even more careful judgment on management concerning such factors as thedemand trend breakdown by location, property size and specification, to say nothing of the overall demand
trend, and the new supply trend breakdown by city and region.
As for the for-sale real estate market, we must carefully discern how the capital supply to the market
will change in the future. Opportunities to acquire blue-chip properties are increasing, as the numberof available buyers is decreasing. Given this background, we are getting into a circumstance where ourcomprehensive management capabilities are tested, including investment judgment and fund raising ability,
in the downward phase of the market.
As a result of these conditions, JPR will proceed with management that exercises caution regarding thefollowing matters as we strive to maximize unitholder value while also taking note of economic and interest
rate trends.

1. Acquisition of New Properties
JPR will implement the following policy while emphasizing our investment policy, increasing
distributions per unit, etc.; striving to improve stability through location and asset classdiversification; and improving investment efficiency through an expansion in the portfolio size.

*JPR will focus its investment on Tokyo and the five other major cities of Osaka, Nagoya,Fukuoka, Sendai and Sapporo and focus on acquiring properties with strong future potential
and competitiveness from a perspective of medium to long-term management. In considering
properties, JPR will strive to acquire properties under appropriate terms by emphasizing thegeographic superiority and future potential of properties while negotiating price based on adetailed market studies and property appraisals.
*JPR will proactively gather information on development-type properties, exit projects of
securitization etc, to ensure a planned acquisition of superior properties and endeavor tosecure properties at an early stage through detailed research and risk analysis to heighten ourcompetitiveness in the acquisition process.
*As for the information channels for available properties, JPR will strive to acquire blue-chipproperties by endeavoring to expand its unique information channels while also collaborating withsponsor companies of JPR's asset manager, Tokyo Realty Investment Management, Inc. (TRIM),
which are Tokyo Tatemono Co., Ltd., Taisei Co., Ltd. and Meiji Yasuda Life Insurance Company.

JPR will continue to strive to expand our portfolio by acquiring solid new properties via a proactive
collection of information and carefully researched investment value including determining the future
potential by accurately grasping market trends.

31

2. Management of Portfolio
JPR will work to enhance asset value and profitability in property through the following measures,
including our brand strategy, in an effort to maintain our competitiveness in the changing market
and differentiate ourselves from others.
・Brand strategy
In order to provide comfortable spaces and improve tenant satisfaction, JPR has hoisted “A/3S(Amenity/Service, Safety and Save Energy)” as our brand concept. JPR will work to grasp the latest
tenant needs by continuously implementing tenant satisfaction studies and proactively feeding backthe results in terms of operations and facilities to tenants, so that we can secure steady provision ofhigh quality services in both operations and facilities.
Meanwhile, JPR will endeavor to implement comprehensive energy management from the viewpointof energy-saving initiatives.
・Renovations
JPR has established maintenance and renovation work programs for each property, based on theproperty lifecycle, in the medium- to long-term maintenance and repair plan. Furthermore, JPR
will proactively implement renovations of entrances, restrooms and other areas seeking to create
highly competitive buildings that can compete against new properties, as well as the renewal of air
conditioning systems and other construction that helps enhance customer satisfaction. In doing
so, as the plan is being shifted to a full fiscal year basis, JPR will endeavor to grasp changes in social
trends as presented in tenant needs and newly-built properties.
・Measure to increase rents
Although increases in newly contracted rents have come to a stop, there still exists a disparity withthe rent levels of existing contracts. Thus, JPR will continue to work to raise rents with existing
tenants upon the renewal of rental contracts, in an effort to reduce the gap. Moreover, in order tomaintain high occupancy rates, JPR will cooperate with property managers and do our utmost tosecure tenants at an early stage before vacancy arises.

(6) Fund Procurement
JPR's fundamental policy for fund procurement calls for an efficient combination of long-term steady fundprocurement and short-term fund procurement that emphasizes dynamism. In line with this policy, JPR
will procure funds unsecured and unguaranteed bank borrowings and issuance of corporate bonds. JPR willcontinue to focus on the diversification of fund procurement means and consistently strive to diversify thematurities.

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

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

32

< Reference Information >Property Acquisition

JPR has acquired the following properties.

Minami Azabu Building
Property Overview
Address:
Type of ownership:
Building:
Site area:
Gloss total floor area:
Type of structure:
Completion date:
Number of tenants:
Total leasable floor space:
Total leased floor space:Occupancy rate:

12-3, Minami Azabu 2-chome, Minato-ku, Tokyo
Land: Ownership
Ownership (Note)
778.09m2
4,570.63m2
S 9F
June 1992
1
3,405.73m2
3,405.73m2
100%*The number of tenants, total leasable floor space, total leased floor space and the occupancy rate are figures as of August 18, 2008.
(Note) All of the unit ownership has been acquired after the acquisition and the registration by which all of the unit ownership andother part of the building is consolidated.

Acquisition Terms
Acquisition price:
Asset type:
Acquisition date:

3,760 million yen
Real estate
July 14, 2008

Yurakucho Ekimae Building (Yurakucho Itocia)
Property overview
Address:
Type of ownership:
Building:
Site area:
Gloss total floor area:
Type of structure:
Completion date:
Number of tenants:
Total leasable floor space:
Total leased floor space:Occupancy rate:

7-1, Yurakucho 2-chome, Chiyoda-ku, Tokyo
Land: Co-ownership (ownership portion: 1.9%)
Co-ownership of unit ownership (co-ownership portion: 4.3%)
6,808.12m2 (ownership portion: 130.79m2)
71,957.65m2 (proprietary portion to be acquired: 1,087.63m2 )S, SRC B4/20F
October 2007
1
1,101.92m2
1,101.92m2
100%*The number of tenants, total leasable floor space, total leased floor space and the occupancy rate are figures as of August 18, 2008.
Acquisition Terms
Acquisition price:
Asset type:
Acquisition date:

3,400 million yen
Real estate
August 27, 200833

Overview of Investment Corporation(1) Unitholders' Capital

9th Fiscal Period
as ofJune 30, 2006

10th Fiscal Period
as ofDecember 31, 2006

11th Fiscal Period
as ofJune 30, 2007

12th Fiscal Period
as ofDecember 31, 2007

Total number of authorized units

13th Fiscal Period
as ofJune 30, 2008

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total number of units issued
and outstanding

530,000

530,000

625,000

625,000

625,000

Unitholders' capital (millions of yen)

115,431

115,431

156,725

156,725

156,725

Total number of unitholders

17,316

15,60417,002

15,08914,921(2) Primary Investors

The following table shows the 10 largest investors according to the percentage of their owned investment units to the total
number of units outstanding as of the end of the 13th fiscal period.

Name

Number of
Owned Units

Address

Percentage
of Total Units
Outstanding (%)

Nikko Citi Trust and Banking Corporation
Japan Trustee Services Bank, Ltd.
Trust & Custody Services Bank, Ltd.
Tokyo Tatemono Co., Ltd.

Shinagawa Ward, Tokyo
Chuo Ward, Tokyo
Chuo Ward, Tokyo
Chuo Ward, Tokyo

46,95645,57235,972
29,300

7.51
7.29
5.76
4.69

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

London, UK(Chuo Ward, Tokyo)

27,376

4.38

25,0004.00

24,38324,00014,55913,396
286,514

3.90
3.84
2.33
2.14
45.84

Kawasaki Gakuen
The Master Trust Bank of Japan, Ltd.
Meiji Yasuda Life Insurance Company
North Pacific Bank, Ltd.

Kurashiki City, Okayama
Minato Ward, Tokyo
Chiyoda Ward, Tokyo
Sapporo City, Hokkaido
Chuo Ward, Tokyo

Nomura Securities Co., Ltd.

Total

(3) Items Related to Directors

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 13th fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 1)

Name

Other Current Assignments

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office2,400

Accountant, Sosuke Yasuda Tax Accountant Office
CPA and Director, Gyosei Audit Corporation

Outside Auditor, Mitsui Sumitomo Insurance Company, Limited

Sosuke Yasuda

Outside Auditor, Nomura Research Institute, Ltd.

4,200

Outside Auditor, Mitsui Sumitomo Insurance Group Holdings

Partner Attomey, Spring Partners

Masato Denawa
Independent
Auditor (Note 2)

Total Directors'
NumberFee duringof Ownedthe 13th Fiscal PeriodUnits(thousands of yen)

Ernst & Young
ShinNihon LLC (Note 3)

15,300(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR's English financial statements.
(Note 3) As of July 1, 2008, Ernst & Young ShinNihon was changed to Ernst & Young ShinNihon LLC because of the change in classification of audit firms.

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

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

(4) Asset Manager, Asset Custodian and Administrative Agent

The asset manager, asset custodian and administrative agents of JPR at the end of the 13th fiscal period are as follows.
Outsoursing Category

34

Name

Asset management company

Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

Administrative agent(Administration, etc. concerning
unitholders of record, etc.)

Mizuho Trust & Banking Co., Ltd.

Administrative agent(administration concerning
corporate bonds)

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

Status of JPR's Assets under Management(1) JPR's Asset Structure
Asset TypeReal estate

Real estate in trustArea

13th Fiscal Period(as of June 30, 2008)

12th Fiscal Period(as of December 31, 2007)
Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Tokyo CBDs

16,562,518

5.9

40,036,023

13.2

Greater Tokyo

28,384,976

10.2

28,357,015

9.3

Other Cities

15,843,873

5.7

15,722,318

5.2

Tokyo CBDs

76,671,239

27.5

76,366,073

25.2

Greater Tokyo

47,521,071

17.0

47,187,751

15.5

Other Cities

61,018,608

21.9

60,837,516

20.0

344,6510.1

344,651

0.1

11.7

34,608,624

Preferred securities

32,495,148

Deposits and other assets(

Total assets

)

(

(

)

)

11.4
(

)

278,842,087

100.0

303,459,974

100.0(246,002,287)(88.2)(268,506,698)(88.5)(Note 1) Total assets owned are based on the amounts appropriated on the balance sheet as of the settlement date (book values after depreciation for real estate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.
(Note 3) For separation of areas, refer to PP 11(Note 4) Various survey expenses (479,755 thousand yen for the 12th fiscal period and 490,575 thousand yen for the 13th Fiscal Period) are appropriated in deposits and other assets
as construction in progress in this table.
(Note 5) JPR owns 6,120 units of 132,093 units of preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securities of 4.63%). Furthermore, the value arrived atby multiplying the amounts of real estate and others on Meieki Nichome Kaihatsu SPC’s balance sheet on 12th Fiscal Period was 725,852 thousand yen and on 13th Fiscal
Period was 871,540 thousand yen.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period)
owned by JPR as of the end of the 13th fiscal period.
Book Value(thousandsof yen)Property Name

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy
Rate (%)

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

Asset Class

Shinjuku Center Bldg.

21,172,622

8,041.63

7,829.35

97.4

4.7

OfficeKawasaki Dice Bldg.

15,387,903

13,089.96

12,981.11

99.2

3.7

RetailKanematsu Bldg.

15,335,584

7,994.02

7,994.02

100.0

4.5

OfficeJPR Umeda Loft Bldg.

12,789,356

18,586.97

18,586.97

100.0

4.0

RetailBYGS Shinjuku Bldg.

11,993,831

11,357.50

11,026.95

97.1

4.5

OfficeJPR Shibuya Tower Records Bldg.

11,773,944

8,076.85

8,076.85

100.0

3.5

RetailMS Shibaura Bldg.

11,165,189

14,429.09

14,429.09

100.0

5.3

OfficeShinjuku Square Tower

9,594,068

10,982.03

10,602.59

96.5

3.2

OfficeTanashi ASTA

8,615,863

31,121.71

31,121.71

100.0

6.0

RetailKawaguchi Center Bldg.

7,673,666

15,461.98

15,225.04

98.5

4.3

Office125,502,031

139,141.74

137,873.68

99.1

43.5

Total

(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents for all properties.
(Note 2)The tenants of Shinjuku Center Bldg. and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a lease agreement has been executed where the rent paid by the tenant fluctuatesin accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate entered for this building are the figures concerning
the sub-lessee of the tenant.
(Note 3) Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees.
Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted areas of offices, shops and warehouses which the company rents and can subleaseto sub-lessees by 39.70457%, the rent allocation ratio of JPR. The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent
allocation ratio. Each figure has been rounded to the second decimal point.

35

(3) Acquired Properties
A. Real estate and other acquired properties

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

Asset

CategoryClass

Property Name

Location

Asset TypeBook Value(as of June 30,
2008)(thousands of yen)Appraisal Value(as of June 30, 2008)(thousands of yen)

Kanematsu Bldg.
Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Beneficiary Interest

15,335,584

17,000,000

Chuo Ward, Tokyo

Beneficiary Interest

2,587,741

3,300,000

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

Beneficiary Interest

1,980,788

2,850,000

Chiyoda Ward, Tokyo

Beneficiary Interest

1,650,737
573,661
204,037

3,420,000

Chiyoda Ward, Tokyo

Beneficiary Interest

3,694,537

4,100,000

Minato Ward, Tokyo

Beneficiary Interest

11,165,189

19,100,000

Shinagawa Ward, Tokyo

Beneficiary Interest

2,768,091

4,000,000

Beneficiary Interest
Real Estate

1,796,789
1,153,798

3,140,000
5,590,000

Shin-Kojimachi Bldg.

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

OfficeTokyo

Fukuoka Bldg.

(additional acquisition in 7th fiscal period )CBDsRetailOfficeChiyoda Ward, Tokyo

Beneficiary Interest

5,271,087

Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

Shinagawa Ward, Tokyo

Beneficiary Interest

3,384,514

4,570,000

Shinjuku Ward, Tokyo

Beneficiary Interest

9,594,068

14,000,000

Shinjuku Ward, Tokyo

Real Estate

11,993,831

12,600,000

Chuo Ward, Tokyo

Real Estate

668,832

1,090,000

Shinjuku Ward,Tokyo

Real Estate

21,172,622

20,900,000

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

Real Estate

11,773,944

15,200,000

JPR Daikanyama
JPR Jingumae 432

Shibuya Ward, Tokyo

Real Estate

2,225,621

1,740,000

Shibuya Ward, Tokyo

Beneficiary Interest

4,585,299

4,630,000

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

Real Estate

2,821,317

2,590,000

Arca East

Sumida Ward, Tokyo

Beneficiary Interest

5,120,911

7,790,000

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

Chiba City, Chiba

Beneficiary Interest

2,479,457

1,930,000

Yokohama City, Kanagawa Beneficiary Interest

2,675,705

2,770,000

892,956

1,670,000

Kawaguchi Center Bldg.
JPR Ueno East Bldg.

Kawaguchi City, Saitama

Beneficiary Interest

7,673,666

10,800,000

Taito Ward, Tokyo

Real Estate

3,187,432

5,690,000

Tachikawa City, Tokyo

Beneficiary Interest
Real Estate

837,920
2,287,096

3,990,000

Rise Arena Bldg.
Yume-ooka Office Tower

Toshima Ward, Tokyo

Real Estate

5,803,969

8,290,000

Yokohama City, Kanagawa Real Estate

6,692,102

6,720,000

Tanashi ASTA
Cupo-la Main Bldg.

Nishitokyo City, Tokyo

Beneficiary Interest

8,615,863

13,300,000

Kawaguchi City, Saitama

Real Estate

2,046,534

2,810,000

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square

Kawasaki City, Kanagawa Real Estate

7,446,923

7,090,000

Beneficiary Interest

4,396,323

4,410,000

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa Beneficiary Interest

15,387,903

15,184,000

Niigata Ekinan Center Bldg.

Niigata City, Niigata

Beneficiary Interest

1,842,896

2,260,000

Meiji Yasuda Life
Osaka Umeda Bldg.

Osaka City, Osaka(additional acquisition in 11th fiscal period )Tokyo

RetailOfficeOther
CitiesRetailChuo Ward, Tokyo

JPR Ichigaya Bldg.

Tachikawa Business Center Bldg.

Greater36

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.

Yokohama City, Kanagawa Real Estate

Saitama City, Saitama

Beneficiary Interest

7,425,072

11,600,000

Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.

Osaka City, Osaka

Beneficiary Interest

4,201,893

4,280,000

Fukuoka City, Fukuoka

Beneficiary Interest

3,289,281

3,250,000

JPR Naha Bldg.
NORTH 33 Bldg.
Sompo Japan Sendai Bldg.

Naha City, Okinawa

Beneficiary Interest

1,455,403

1,720,000

Sapporo City, Hokkaido

Beneficiary Interest

3,517,673

2,960,000

Sendai City, Miyagi

Beneficiary Interest

2,679,126

4,320,000

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama Beneficiary Interest

1,448,963

1,970,000

Tenjin 121 Bldg.
JPR Nagoya Sakae Bldg.
JPR Dojima Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

2,523,907

3,180,000

Nagoya City, Aichi

Real Estate

4,515,772

6,190,000

Osaka City, Osaka

Beneficiary Interest

2,150,781

3,210,000

JPR Hakata-chuo Bldg.
Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.
JPR Umeda Loft Bldg.
Strasse Ichibancho
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

1,876,841

2,360,000

Nagoya City, Aichi

Real Estate

4,009,752

4,600,000

Osaka City, Osaka

Beneficiary Interest

12,789,356

16,300,000

Sendai City, Miyagi

Beneficiary Interest

4,012,509

3,180,000

Osaka City, Osaka

Beneficiary Interest

5,487,584

5,660,000

Kobe City, Hyogo

Real Estate

7,196,794

8,100,000

Osaka City, Osaka

Beneficiary Interest

6,136,224

5,580,000

Total

268,506,698

322,984,000(Note 1) The calculated values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on " Regulations on calculations ofinvestment corporations."(Note 2) Aside from properties indicated in the table above, JPR owns 6,120 units of 132,093 units of preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securitiesof 4.63%). Furthermore, the value arrived at by multiplying the amounts of real estate and others on Meieki Nichome Kaihatsu SPC's balance sheet on it's latest settlement
period was 871,540 thousand yen.

History of Rental Business for Each of JPR's Real Estate and BeneficiaryInterest in Real Estate Investments
Location

Asset

CategoryClass

12th Fiscal Period (from July 1, 2007
to Dec. 31, 2007)

Property Name

NumberofTenants

RentalOccupancy% of Number
Revenuesofof Total
Rate (%) (thousands
Tenants
yen)

9

97.5

470,728

4.5

8

100.0

465,038

4.3

1

100.0

108,950

1.0

1

100.0

109,601

1.0

JPR Ningyo-cho Bldg.

4

100.0

104,980

1.0

4

100.0

107,555

1.0

75,5430.7

75,051

0.7

32,1590.3

32,0870.3

12,2600.1(additional acquisition in 2nd fiscal period )

11

100.0

(additional acquisition in 6th fiscal period)Tokyo

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.

RetailOfficeOther
CitiesRetail100.0

143,592

1.4

9

100.0

143,301

1.3

8

100.0

581,455

5.6

8

100.0

582,419

5.4

1

100.0

140,877

1.4

2

100.0

139,327

1.3

0.6
0.4

0.6
0.4

100.0

1

100.0

9

100.0

193,250

1.9

9

100.0

191,514

1.8

Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

4

100.0

188,276

1.8

4

100.0

195,762

1.8

23

96.3

300,738

2.9

22

96.5

319,454

2.9

25

98.5

484,198

4.6

24

97.1

491,804

4.5

4

100.0

51,070

0.5

4

100.0

51,135

0.5

24

97.4

263,846

2.4

JPR Shibuya Tower Records Bldg.

1

100.0

345,576

3.3

1

100.0

345,576

3.2

JPR Daikanyama
JPR Jingumae 432

3

76.6

43,505

0.4

3

72.1

58,968

0.5

5

100.0

88,879

0.9

5

100.0

97,091

0.9

Shinjuku Sanchome East Bldg.

1

100.0

15,959

0.2

1

100.0

39,166

0.4

Arca East

6

100.0

296,103

2.8

6

100.0

296,516

2.7

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

29

91.1

145,454

1.4

29

89.1

137,059

1.3

10

97.2

144,358

1.4

12

100.0

143,648

1.3

13

100.0

75,338

0.7

13

100.0

75,586

0.7

Kawaguchi Center Bldg.
JPR Ueno East Bldg.

39

97.1

466,918

4.5

39

98.5

486,508

4.5

8

90.9

193,514

1.9

8

90.9

191,255

1.8

100.0

59,1060.6

100.0

58,9250.5

96.1

91,501

0.9

89.9

102,527

0.9

1

100.0

244,442

2.3

1

100.0

238,836

2.2

35

91.1

320,142

3.1

35

94.5

324,244

3.0

Tanashi ASTA
Cupo-la Main Bldg.

1

100.0

596,400

5.7

1

100.0

596,400

5.5

1

100.0

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

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square

1

100.0

（Note 2）
（Note 2）1100.0（Note 2）
（Note 2）3100.0

129,061

1.2

3

100.0

129,061

1.2

Kawasaki Dice Bldg.

20

99.2

486,880

4.7

20

99.2

484,488

4.5

Niigata Ekinan Center Bldg.

10

100.0

133,971

1.3

10

98.2

132,717

1.2

Meiji Yasuda Life
Osaka Umeda Bldg.

27

98.4

379,879

3.6

27

98.4

378,506

3.5

Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.

Office0.1

91

Rise Arena Bldg.
Yume-ooka Office Tower

Retail12,198JPR Ichigaya Bldg.

(additional acquisition in 11th fiscal period )

Tokyo

100.0

64,667
41,468

Tachikawa Business Center Bldg.

Greater

11

64,667
41,468(additional acquisition in 7th fiscal period )CBDs

Rental% ofOccupancy
Revenuesof Total
Rate (%) (thousandsyen)Kanematsu Bldg.
Kanematsu Bldg. Annex
Shin-Kojimachi Bldg.

Office13th Fiscal Period (from Jan. 1, 2008
to June 30, 2008)

20

19

9

98.9

245,457

2.4

9

98.7

244,289

2.3

26

96.0

168,446

1.6

27

97.7

162,084

1.5

JPR Naha Bldg.
NORTH 33 Bldg.
Sompo Japan Sendai Bldg.

19

100.0

112,869

1.1

18

97.6

111,018

1.0

26

98.9

161,985

1.6

26

98.9

168,444

1.6

17

99.9

207,452

2.0

16

100.0

206,879

1.9

Sompo Japan Wakayama Bldg.

18

96.8

121,689

1.2

16

91.6

117,987

1.1

Tenjin 121 Bldg.
JPR Nagoya Sakae Bldg.
JPR Dojima Bldg.

13

100.0

120,023

1.2

13

100.0

119,990

1.1

19

87.8

229,591

2.2

21

100.0

225,190

2.1

9

87.0

116,328

1.1

8

83.4

115,999

1.1

JPR Hakata-chuo Bldg.
Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.
JPR Umeda Loft Bldg.
Strasse Ichibancho
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

5

92.5

87,354

0.8

5

92.5

85,291

0.8

1

100.0

192,692

1.9

1

100.0

190,863

1.8

1

100.0

402,411

3.9

1

100.0

402,411

3.7

1

100.0

128,388

1.2

0

0.0

221,089

2.0

1

100.0

（Note 2）
（Note 2）1100.0（Note 2）
（Note 2）1100.0（Note 2）
（Note 2）8

100.0

141,744

Total

517

1

100.0

（Note 2）
（Note 2）

1.4

8

100.0

138,21398.4 10,415,033 100.0

537

1.3

97.5 10,830,941 100.0(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Building, Kawasaki Dice Bldg. and Strasse Ichibancho: when asingle tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural. The tenantsof Shinjuku Square Tower, Shinjuku Center Building, Kawasaki Dice Bldg. and Strasse Ichibancho have sublet space to sublessees and lease agreements have been executed where
the rent paid by the tenants fluctuates in accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) The tenant to whom the entire building is leased has not agreed to our disclosing rents and other information. Therefore, JPR does not disclose them as it falls under cases in which
disclosure is impossible due to inevitable reasons.

37

B. Details of Investment Securities Acquired as Properties
Book Value
Securities Name

Meieki Nichome
Kaihatsu SPC

Asset Type

Preferred securities

Appraisal Value

Units

6,120 units

Unit Price(yen)(thousands of yen)

Value

Unit Price(yen)(thousands of yen)

56,315

344,651

56,315

344,651

Value

Gains or
LossesRemarksfrom
Valuation(Note 1)
(Note 2)

(Note 1) The appraisal value of the preferred securities are their acquisition costs.
(Note 2) JPR owns 6,120 units of 132,093 units of preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securities of 4.63%).
Furthermore, the value arrived at by multiplying the amounts of real estate and others on Meieki Nichome Kaihatsu SPC’s balance sheet on it’s latest settlement
period was 871,540 thousands of yen.

(4) Status of Other Properties
Beneficiary interests with real estate as major entrusted properties have been entered under Real Estate andother Aquired Properties in P36.
There is no incorporation of main specific assets which are main investment targets of JPR other than listed on
P36 as of the end of 13th period.

38

Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expentidures for currently planned renovations, etc. for JPRowned real estate and entrusted real estate regarding beneficiary interests in real estate. Further, the planned
construction expenses include portions that are classified as expenses in accounting.
Planned (millions of yen)
Property Name

Location

PurposeSchedule

Total ValueJPR Chiba Bldg.

Chiba City,
Chiba

Replacement of 2nd - 5th floor
air conditioning units

Jul. 2008~
Dec. 2008

87

JPR Ichigaya Bldg.

Chiyoda Ward,Tokyo

Replacement of 3rd - 6th floor
air conditioning units

Jul. 2008~
Dec. 200884

JPR Yokohama
Nihon Odori Bldg.

Yokohama City,
Kanagawa

Replacement of 7th - 10th
floor air conditioning units

Jul. 2008~
Dec. 200881

JPR Hakata Bldg.

Fukuoka City,
Fukuoka

Renewal of 6th - 10th
common areas

Jul. 2008~
Dec. 2008

78

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Replacement of interior of 2nd
basement - 1st floor common
areas

Apr. 2008~
Sep. 200876

JPR Ueno East Bldg.

Taito Ward,Tokyo

Renewal of 1st basement
exclusive area into officespecification

Sep. 2008~
Dec. 2008

50

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Replacement of interior of
2nd - 5th floor common areas

Jun. 2008~
Sep. 2008

37

Payment
duringthe 13th
Fiscal Period

AmountAlreadyPaid(2) Capital Expenditures during the 13th Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate
during the 13th period. Among major capital expenditures, conversion work and renewal of mechanicalparking lot in an effort to enhance profitability and replacement work to enhance tenant satisfaction as wellas improvements to common-use areas and the installation of office automation floors for leased offices withthe aim of attracting new tenants. Besides, JPR conducted construction of 271 million yen (Note), which wasappropriated as expenditures for repair and maintenance, aside from these constructions.
Construction Expenses(millions of yen)

Property Name

Location

PurposeYume-ooka Office Tower

Yokohama City,
Kanagawa

Conversion work at 24th floor

Oct. 2007~
Feb. 2008

143

Tokyo Tatemono
Honmachi Bldg.

Osaka City,
Osaka

Renewal of mechanicalparking lot

Aug. 2007~
Mar. 2008

89

JPR Chiba Bldg.

Chiba City,
Chiba

Replacement of 6th - 10th
floor air conditioning units

Jan. 2008~
Jun. 2008

56

North 33 Bldg.

Sapporo City,
Hokkaido

Replacement of 1st - 4th, 6th
and 7th floor air conditioning
units

Nov. 2007~
Mar. 2008

47

JPR Hakata Bldg.

Fukuoka City,
Fukuoka

Renewal work of 11th and12th floor common areas

Apr. 2008~
Jun. 200839

JPR Yokohama
Nihon Odori Bldg.

Yokohama City,
Kanagawa

Replacement of 11th floor air
conditioning unit

Apr. 2008~
Jun. 200837

JPR Ichigaya Bldg.

Chiyoda Ward,Tokyo

Replacement of 7th floor air
conditioning unit

Apr. 2008~
Jun. 2008

32

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Replacement of interior of 9th- 11th floor common areas

Dec. 2007~
Mar. 2008

27

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Replacement of interior of 6th- 8th floor common areas

Mar. 2008~
Jun. 2008

27

Other Properties

Repairs of common area, installation of office automation floors, preparationof parking lots, air conditioners and disaster prevention facilities

Period

Total

319
821

(Note) Expenditures for repair and maintenance included 6,000,000 yen of construction management fees paid to construction management companies aswell as the amounts for repair and maintenance constructions themselves.

39

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

(Millions of yen)

Operation Period

9th Fiscal Period(Jan. 1, 2006 ~June 30, 2006)

10th Fiscal Period(July 1, 2006 ~Dec. 31, 2006)

11th Fiscal Period(Jan. 1, 2007 ~June 30, 2007)

12th Fiscal Period(July 1, 2007 ~Dec. 31, 2007)

13th Fiscal Period(Jan. 1, 2008 ~June 30, 2008)

Balance of deposits at
end of previous period

667

678

698

681

737

Deposits during the period

141

297

488

803

604

Amounts used from
deposits during the period

130

277

505

747

545

Deposits carried forward
to the next period

678

698

681

737

796

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

12th Fiscal Period (July 1, 2007 - Dec. 31, 2007)

13th Fiscal Period (Jan. 1, 2008- June 30, 2008)(a) Asset Management Fees (Note)

400,929

416,576

Fixed compensation

75,00075,000

Incentive-based compensation 1

196,963

203,893

Incentive-based compensation 2

128,965

137,682(b) Administrative Service and Custodian Fees

69,035

66,218(c) Directors' Fee

6,300

6,600

(d) Trust Fees

55,87955,758(e) Other Expenses
Total

94,594

95,297626,739

640,451(Note) Aside from the amounts of the asset management fees entered above, a total 58,000 thousand yen has been paid for asset management of the acquired
properties. JPR started to implement including management fees for property acquisitions in the book values of individual properties in the 13th
fiscal period.

(2) Status of Borrowings

As of June 30, 2008 JPR has the following borrowings.
Category

LenderBank ofTokyo-Mitsubishi
UFJ, Ltd. (Note 4)

Feb. 5, 2008

1,800

(millions of yen)(millions of yen)Mar. 26, 2008

Average
Interest Rate(%) (Note 1)(Note 2)

Repayment
Date

0.949

Jul. 5, 2008

0.994

Jul. 5, 2008

1,200

0.935

Jul. 5, 2008

Feb. 5, 2008

2,000

0.949

Jul. 5, 2008

Mar. 26, 2008

2,000

0.998

Jul. 5, 2008

Mar. 26, 2008

1,872

0.996

Jul. 5, 2008

Apr. 23, 2008

1,100

0.935

Jul. 5, 2008

Mitsubishi UFJ
Trust and Banking Mar. 26, 2008
Corporation

3,800

0.998

Jul. 5, 2008

Shinsei Bank,
Limited (Note 4)

1,020

0.995

Jul. 5, 2008

Mizuho Corporate
Bank, Ltd. (Note 4)

Total

40

Balance as of Balance as ofJune 30,
December 31,
2008
2007

Apr. 23, 2008
Resona Bank,
LimitedShort-Term
Borrowings

Drawdown
DateMar. 26, 2008

14,792

Repayment
MethodUse

Principal

Unsecured/

lump
sum
repayment
on maturity

Remarks(Note 3)

Unguaranteed/
NonsubordinatedCategory

Drawdown
Date

LenderZenkyoren(The National
Mutual Insurance
Federation ofAgricultural
Cooperatives)

Nov. 24, 2005

Borrowings

Balance as of
AverageJune 30,
Interest Rate Repayment
2008(%) (Note 1) Date(millions of yen) (millions of yen)
(Note 2)

5,000

Mar. 26, 2008

5,000

1.453 Nov. 27, 2012

2,000

1.725 Mar. 26, 2015

Mitsubishi UFJ
Trust and Banking Corp. Aug. 29, 2006

6,000

6,000

1.734 Aug. 29, 2011

Shinsei Bank, Ltd.

Sep. 26, 2006

3,000

3,000

1.356 Sep. 24, 2010

Sep. 26, 2006
Apr. 11, 2007
Sep. 26, 2006
The Chugoku
Bank, Ltd.
Apr. 11, 2007
Sep. 26, 2006
The Hachijuni
Bank, Ltd.
Dec. 26, 2006
Dec. 26, 2006
Daido Life
Insurance Company Feb. 5, 2008
Dec. 26, 2006
Taiyo Life
Insurance Company Jun. 4, 2008
Dec. 27, 2006
Sumitomo Life
Insurance Company Jun. 4, 2008
Sompo Japan
Apr. 11, 2007
Insurance Inc.

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

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

1.356 Sep. 24, 2010
1.676 Apr. 11, 2012
1.356 Sep. 24, 2010
1.676 Apr. 11, 2012
1.356 Sep. 24, 2010
1.642 Apr. 11, 2012
1.858 Dec. 27, 2013
1.666 Feb. 5, 2015
1.858 Dec. 27, 2013
2.035 Jun. 4, 2013
1.858 Dec. 27, 2013
2.257 Jun. 4, 2015

2,000

2,000

1.676 Apr. 11, 2012

The Iyo Bank, Ltd. Apr. 11, 2007

1,000

1,000

1.676 Apr. 11, 2012

5,000

1.181 Feb. 4, 2011

5,000

1.380 Mar. 26, 2011

4,783

4,783

2.050 Jun. 21, 2011

4,400

4,400

1.750 Mar. 28, 2015

38,18354,183

The Bank ofFukuoka, Ltd.

Long-Term

Balance as ofDecember 31,
2007

Mizuho Corporate
Feb. 5, 2008
Bank, Ltd.
Bank of TokyoMitsubishi UFJ, Ltd. Mar. 26, 2008
Meiji Yasuda Life
Jun. 21, 2002
Insurance
Mar. 28, 2003
Company
Total

2,000

Repayment
MethodUse

Unsecured/Principal

Unguaranteed/

lump
sum
repayment

Remarks

Non-(Note 3) subordinatedon maturity

Secured/
Unguaranteed/
Nonsubordinated(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal point. Furthermore, fees related to loan arrangement paid
to the above lenders are not included.
(Note 2) Short-term borrowings are floating-rate borrowings. Long-term borrowings are fixed-rate borrowings.
(Note 3) Funds are mainly used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses) and repaying borrowings.
(Note 4) JPR repaid the following short-term borrowings on June 5, 2008 ahead of the maturity dates: 200 million yen out of the 2 billion yen from Bank of Tokyo-Mitsubishi UFJ, Ltd.
undertaken on February 5, 2008; and 1.8 billion yen from Bank of Tokyo-Mitsubishi UFJ, Ltd., 2.028 billion yen out of the 3.9 billion yen from Mizuho Corporate Bank, Ltd. and1.98 billion yen out of the 3 billion yen from Shinsei Bank, Ltd., all of which were undertaken on March 26, 2008.

(3) Corporate Bonds

Details of corporate bonds outstanding as of June 30, 2008 are as follows.
NameFirst Series ofCorporate
Bonds
Second Series ofCorporate
Bonds
Third Series ofCorporate
Bonds
Fourth Series ofCorporate
Bonds
Fifth Series ofCorporate
Bonds
Sixth Series ofCorporate
Bonds
Seventh Series ofCorporate
Bonds
Eighth Series ofCorporate
Bonds
Ninth Series ofCorporate
Bonds
Tenth Series ofCorporate
Bonds

Total

Issue Date

Balance as ofDecember 31, 2007
(millions of yen)Feb. 12, 2004

10,000Feb. 12, 2004

7,000

Balance as ofJune 30, 2008
(millions of yen)

7,000

Coupon Rate(per annum)

Maturity
Date

0.84

Feb. 12,
2008

1.38

Feb. 12,2010

Feb. 12, 2004

5,000

5,000

2.32

Feb. 12,2014

Nov. 4, 2004

10,00010,0000.92

Nov. 4,2009

Nov. 4, 2004

5,000

5,000

1.44

Nov. 4,2011

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4,2014

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14,2026

July 23, 2007

9,000

9,000

1.85

July 23,
2012

6,000

2.10

July 23,
2014

3,000

1.71

May 30,2011

July 23, 2007

6,000

May 30, 2008
61,500

Redemption

Use

Remarks(Note 1)
Purchase ofproperties
andRepayment ofborrowings

Bullet(Note 2)

payment

Repayment ofborrowings(Note 3)54,500(Note 1) These are equipped with a same rank rider limited among corporate bonds, and with limitations on private placement among small number of investors and on resale among
qualified institutional investors.
(Note 2) These are equipped with a same rank rider limited among corporate bonds and limitations on resale among qualified institutional investors.
(Note 3) These are equipped with a same rank rider limited among certain corporate bonds.

41

Acquisition and Sale during the 13th Fiscal Period(1) Aqcuisition and Sale of Real Estate and Asset-Backed Securities
Acquisition
Real Estate
Name

Type of Asset

Sale

Acquired
Date

AcquisitionPrice(thousandsof yen)(Note)

Real Estate

Shinjuku
Center Bldg.

Mar. 27,2008

21,000,000

Real Estate

Shinjuku Sanchome Apr. 24,
East Bldg.
2008

2,200,000(additional ownership)

Sale
Date

Sale
Book
Difference (C)Price (A)Value (B)(A) - (B)(thousands (thousands (thousands ofof yen)of yen)yen)(Note)

Sale
Expenses(D)(thousandsof yen)Sale Profit
and Loss(C) - (D)(thousandsof yen)23,200,000

Total(Note) Values of "acquisition price" or "sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.

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

(3) Survey on Values of Specified Assets, etc.
A. Real Estate Transactions

Acquisition Price orSale Price (Note 1)(thousands of yen)

Survey Value ofSpecified Assets (Note 2)(thousands of yen)

Acquisition or Sale

Real Estate NameTransaction
Date

Acquisition

Shinjuku Center Bldg.

Mar. 27, 2008

21,000,000

20,900,000

Shinjuku Sanchome
East Bldg.

Apr. 24, 2008

2,200,000

2,000,000

Acquisition(additional ownership)(Note 1) Values of "acquisition price or sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.
(Note 2) Surveys on the values of specified assets, etc. indicated above were conducted by Ernst & Young ShinNihon LLC at times of acquisition or sale of properties based on
the Report No. 23, "surveys on values of specified assets, etc. of investment trusts and investment corporations," issued by the Industry Audit Committee of the JapaneseInstitute of Certified Public Accountants. Furthermore, aside from the value surveys shown above, JPR has received survey reports on locations, addresses and other items
needed for identifying relevant real estate.

42

(4) Transactions with Interested Parties and Major Shareholders
A.Transaction Status
There were no transaction with interested parties or major shareholders.
B.Value of Fee Expenses

Category(Thousands of yen)

Paid Amount(B)

Ratio toTotal
Amount(B/A)(% of total)

Tokyo Tatemono Co., Ltd.

174,686

72.4

Yasuda Real Estate Co., Ltd.

11,129

4.6

Meiji Yasuda Building Management, Co., Ltd.

24,156

10.0

Yuraku Real Estate Co., Ltd.

3,361

1.4

Tokyo Tatemono Co., Ltd.

342,946

68.9

Yasuda Real Estate Co., Ltd.

23,7344.8

Meiji Yasuda Building Management, Co., Ltd.

45,200

9.1

Tokyo Tatemono Co., Ltd.

14,782

88.5

Breakdown of Transactions with Interested Parties
Total Paid Fees(A)

Management Fees
(Note 2)

Outsourcing Fees

Tenant Brokerage Fees,
etc.

Paid Party

241,386

498,084

16,694(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreementwith JPR and is regulated as designated in Article 123 of the Enforcement Order of as the Investment Trusts and Investment Corporations Law and the major
shareholders of the asset management company regulated defined in Article 29-4-2 of the Financial Instruments and Exchange Law.
(Note 2) The management fees indicated in the above table include construction management fees (total of 21,841 thousand yen for JPR) appropriated as assets and nothandled as expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties during the 13th fiscal period.
Tokyo Tatemono Co., Ltd.

319,958 thousand yen

Tokyo Tatemono Techno-build Co., Ltd.

76,270 thousand yen

Yasuda Real Estate Co., Ltd.

13,340 thousand yen

Meiji Yasuda Building Management Co., Ltd.

25,285 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct
the class 1 financial instruments transaction business, class 2 financial instruments transaction business, land andbuilding transaction business, or real estate syndication business, and has no such transactions with JPR.

43

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

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

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

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

44

Other(1) Notice

Outlines of major issues related to the conclusion or changes of major contracts approved by JPR’s Board of
Directors meeting during the fiscal period are as follows.
Date of the Meeting

Approved Issues

Outline
The regulations concerning the coverageand policies of asset management, which
are attached to the asset management

March 26, 2008

Conclusion of memorandum for revisingasset management consignment agreement

consignment agreement, were partiallychanged. In addition, descriptions of the
management fees were partially changed,
and descriptions of provisions werechanged in accordance with the changes oflaws and regulations.

JPR consigned administration work
concerning the Tenth Series of Unsecured
May 13, 2008

Consignment of general administration
work accompanying the issuance of theTenth Series of Unsecured Corporate Bonds

Corporate Bonds to Mizuho Securities Co.,
Ltd. and Mizuho Corporate Bank, Ltd., withthe decision on the issuance of the said
corporate bonds by the Executive Officer
set as the termination condition.

(Note) A comprehensive resolution concerning the issuance of the corporate bonds was approved by the Board of Directors meeting held on December 26, 2007. Based on this, JPR
issued the Tenth Series of Unsecured Bonds on May 30, 2008.

(2) Other

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

45

Balance Sheets(As of June 30, 2008 and December 31 , 2007)(Thousands of yen)

End of 13th Fiscal Period

End of 12th Fiscal Period(as of June 30, 2008)(information only)(as of December 31, 2007)￥ 18,461,764￥ 16,307,505

15,126,982

14,990,073

Rental receivables

222,607174,320

Prepaid expenses

118,836

150,91132

67% Change

ASSETS
CURRENT ASSETS :Cash and bank deposits
Entrusted cash and deposits

Deferred tax assets
Other current assets

27,925

251,563

Total Current Assets

33,958,148

31,874,441

Buildings

28,136,636

25,721,274

Entrusted buildings

79,874,090

79,462,451

17,558

6,376

6.5%

FIXED ASSETS :PROPERTY AND EQUIPMENT :Structures
Entrusted structures

88,27982,640Machinery and equipment

335,716

304,863

1,435,934

1,340,537

Tools, furniture and fixtures

18,077

15,624

Entrusted tools, furniture and fixtures

86,31078,086

Land

56,542,608

36,600,710

Entrusted land

117,128,148

117,128,148

490,575

622,755(16,702,970)(14,884,608)

267,450,965

246,478,860

Entrusted machinery and equipment

Construction in progress
Less : accumulated depreciation
Net Property and Equipment

8.5%

Intangible Assets:
Leasehold right

1,542,818

Other intangible assets

9,604

10,368

Total Intangible Assets

1,552,423

10,368Investment securities

344,651

344,651

Deposits

17,00010,100900

900

362,551355,651

1.9%

269,365,940

246,844,880

9.1%

135,885

122,765

14,872.8%

INVESTMENTS AND OTHER ASSETS :Other
Total Investments and Other Assets
Total Fixed Assets

Deferred Assets:
Corporate bond issuance costs
Total Deferred Assets

TOTAL ASSETS(Note) See accompanying Notes to Financial Statements

46

135,885

122,76510.7%￥303,459,974￥278,842,087

8.8%

(Thousands of yen)

End of 13th
Fiscal Period(as of June 30, 2008)

End of 12th
Fiscal Period(information only)(as of December 31, 2007)% Change

LIABILITIESCURRENT LIABILITIES :Trade accounts payable
Short-term borrowings￥

1,386,300￥

1,143,623

14,792,000

Current portion of corporate bonds

10,000,000

Other accounts payable572,798

536,924

Accrued expenses

279,203

297,440

Accrued income taxes
Accrued consumption taxes
Rent received in advance

648

652

166,601

123,162

1,168,758

1,140,748

18,366,311

13,242,552

Corporate bonds

54,500,000

51,500,000

Long-term borrowings

54,183,000

38,183,000

Leasehold and security deposits received

4,164,487

3,975,087

11,069,161

11,046,281

Total Long-Term Liabilities

123,916,649

104,704,369

18.3%

TOTAL LIABILITIES

142,282,960

117,946,921

20.6%

156,725,438

156,725,438

4,451,575

4,169,727

6.8%

TOTAL UNITHOLDERS' EQUITY

161,177,014

160,895,166

0.2%

TOTAL LIABILITIESAND UNITHOLDERS' EQUITY￥303,459,974￥278,842,087

8.8%

Total Current Liabilities

38.7%

LONG-TERM LIABILITIES :Entrusted leasehold
and security deposits received

UNITHOLDERS' EQUITY :Unitholders’ capital
5,000,000 units authorized
625,000 units issued and outstanding
Retained earnings(Note) See accompanying Notes to Financial Statements

47

Statements of Income and Retained Earnings(For the six-month periods ended June 30, 2008 and December 31, 2007)(Thousands of yen)

13th Fiscal Period(January 1, 2008 June 30, 2008)(information only)(July 1, 2007 December 31, 2007)

OPERATING REVENUES :￥10,830,941￥10,449,831

Real estate rental revenues

10,830,941

10,415,033

OPERATING EXPENSES :5,550,329

5,443,585

4,909,878

4,816,845

Asset management fees

416,576

400,929

Administrative service and custodian fees

66,21869,035

Real estate rental expenses

Directors’ fees

6,600

6,300

Trust fees

55,75855,879Other operating expenses

OPERATING INCOME
NON- OPERATING REVENUES :

3.6%

2.0%

95,297

94,594

5,280,611

5,006,245

5.5%
433.5%

99,78918,703

Interest income

14,86914,061

Income on settlement of management
association accounts

79,595

Other non-operating revenues

5,323

4,642

NON-OPERATING EXPENSES :928,197

854,410434,963334,466

Interest expense% Change

34,797

Dividends received

8.6%

Loan arrangement fees

16,243

16,393

Interest expense on corporate bonds

462,796474,899

Amortization of corporatebond issuance costs

9,512

8,010

Other non-operating expenses

4,682

20,641

ORDINARY INCOME

4,452,203

4,170,538

6.8%

INCOME BEFORE INCOME TAXES

4,452,203

4,170,538

6.8%

Current income taxes

945

981

Deferred income taxes

34

81

4,451,222

4,169,475

6.8%

RETAINED EARNINGSBROUGHT FORWARD

352

252

40.0%

RETAINED EARNINGSAT END OF PERIOD￥ 4,451,575￥ 4,169,727

6.8%

NET INCOME(Note) See accompanying Notes to Financial Statements

48

12th Fiscal Period

Statements of Changes in Unitholders' Equity(For the six-month periods ended June 30, 2008 and December 31, 2007)(Thousands of yen)

Unitholders' capital
BALANCE AS OF JUNE 30, 2007

￥156,725,438

Retained earnings

Total￥4,372,752￥161,098,190

Changes during the period(203,024)(203,024)

Cash distributions paid

(4,372,500)(4,372,500)

Net Income

BALANCE AS OF DECEMBER 31, 2007

156,725,438

Changes during the period
Cash distributions paid
Net Income

BALANCE AS OF JUNE 30, 2008

￥156,725,438

4,169,475

4,169,475

4,169,727

160,895,166

281,847

281,847(4,169,375)(4,169,375)

4,451,222

4,451,222￥4,541,575￥161,177,014(Note) See accompanying Notes to Financial Statements

49

Notes to Financial Statements
Basis of Presenting Financial Statements
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its
financial statements in accordance with accounting principles generally accepted in Japan (JapaneseGAAP), including provisions set forth in the Investment Trust Law, the Company Law and the related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR,
which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial
statements, certain reclassifications have been made to the financial statements issued domestically inorder to present them in a format which is more familiar to readers outside Japan. In addition, the notes
to financial statements include information which might not be required under Japanese GAAP but ispresented herein as additional information.
JPR's accounting period ends at the end of June and December. JPR's 13th accounting period began on
January 1, 2008 and ended on June 30, 2008.

Significant Accounting Policies
1. Assets Valuation Standards and Methods

Investment securities include other securities. Other securities without market value are stated on a
cost basis using the moving-average method.

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

3 - 65 years
10 - 35 years
3 - 17 years
3 - 15 years

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

3. Accounting for Deferred Assets

Corporate Bond Issuance Costs
Corporate bond issuance costs are depreciated utilizing the straight-line method over the redemption
periods.

50

4. Standards for Recording Revenues and Expenses
Accounting treatment of Taxes on Properties and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR adopt the methodof charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental
expenses. Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers
during the first fiscal period as an acquisition cost, not as expenses, in connection with the acquisition ofreal estate or entrusted beneficiary interest with real estate as entrusted property. During the 13th fiscal
period, the amount equivalent to the property taxes included as an acquisition cost of real estate totaled
73,269 thousand yen .

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

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

End of 13th Fiscal Period
Assets pledged as collateral are as follows
Entrusted deposits
Buildings
Entrusted buildings
Entrusted structures
Machinery and equipment
Entrusted machinery and equipment
Entrusted tools, furniture and fixtures
Land
Entrusted land
Total

Secured liabilities are as follows
Long - term borrowings
Leasehold and security deposits received
Total

End of 12th Fiscal Period(as of June 30, 2008)(information only)(as of December 31, 2007)￥ 2,260,913
140,352
7,172,123
4,192
5,307
15,143
2,374
398,201
8,536,013￥18,534,622￥ 2,263,462
142,214
7,278,456
4,055
5,478
16,6762,181
398,201
8,536,013￥18,646,741

End of 13th Fiscal Period

End of 12th Fiscal Period(as of June 30, 2008)(information only)(as of December 31, 2007)￥ 9,183,000
15,536￥ 9,198,536￥ 9,183,000
15,536￥ 9,198,536

51

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

End of 13th Fiscal Period

End of 12th Fiscal Period(as of June 30, 2008)
December 1, 2006
￥20,000,000

December 1, 2006
￥20,000,000

Contract execution date
Credit limit
Outstanding debt at end of period
Unused commitment line at end of period(information only)(as of December 31, 2007)￥20,000,000￥20,000,000

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

End of 13th Fiscal Period

End of 12th Fiscal Period(as of June 30, 2008)(information only)(as of December 31, 2007)￥50,000￥50,000

Notes to Statements of Income and Retained Earnings
1. Breakdown of Real Estate Rental Revenues and Expenses(Thousands of yen)

13th Fiscal Period

12th Fiscal Period(January 1, 2008 June 30, 2008)(information only)(July 1, 2007 December 31, 2007)￥8,127,839
1,609,384
215,881
16,818
10,78821,31010,002,022￥7,840,275
1,560,105
214,147
16,347
11,04920,9799,662,904

Incidental income
594,121Time-based parking revenues
7,466
Cancellation charges
191,835
Income equivalent to expenses for restoration to as is condition
10,700
Other miscellaneous income
24,794
Sub total
828,918￥10,830,941
Total real estate rental revenues

704,675
7,442
5,353
22,983
11,674752,129￥10,415,033

A. Real Estate Rental Revenues
Rental revenues
Rents
Common charges
Parking revenues
Advertising expenses
Antenna use fees
Other
Sub total
Other rental revenues

B. Real Estate Rental Expenses
Rental expenses
Outsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
Depreciation
Other
Total real estate rental expenses
C. Profits (A-B)

52￥

498,084
662,718
859,818
33,328265,074
219,545457,773
1,818,454
95,081￥4,909,878￥￥5,921,062￥5,598,188

477,158
740,835
764,570
35,005
251,562
207,033
461,431
1,809,469
69,778￥4,816,845

Notes to Statements of Changes in Unitholders' Equity
13th Fiscal Period

The number of units outstanding

12th Fiscal Period(January 1, 2008 June 30, 2008)(information only)(July 1, 2007 December 31, 2007)

625,000 units

625,000 units

13th Fiscal Period

12th Fiscal Period

Tax Effect Accounting(Thousands of yen)(January 1, 2008 June 30, 2008)

1. Breakdown of Main Causes for Deferred Tax Assets
and Deferred Tax Liabilities(Deferred tax assets)

Enterprise tax not deductible for income tax purposes
Lump-sum depriciated assets not deductible for tax purposes
Total deferred tax assets
Net deferred tax assets(information only)(July 1, 2007 December 31, 2007)

￥ 16

￥ 18

15
32
￥32

48
67
￥67

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

13th Fiscal Period

Effective statutory tax rate
(Adjustment)
Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting

12th Fiscal Period(January 1, 2008 June 30, 2008)(information only)(July 1, 2007 December 31, 2007)

39.39%

39.39%(39.38%)
0.01%
0.02%

(39.38%)
0.02%
0.03%

Property and Equipment Leased to JPR
13th Fiscal Period(January 1, 2008 - June 30, 2008)

12th Fiscal Period (information only)(July 1, 2007 - December 31, 2007)

No property and equipment leased to JPR

No property and equipment leased to JPR

53

Transactions with Interested Parties
13th Fiscal Period(January 1, 2008 - June 30, 2008)

12th Fiscal Period (information only)(July 1, 2007 - December 31, 2007)

No transactions with interested parties

No transactions with interested parties

Per Unit Information(Yen)

13th Fiscal Period

Total unitholders' equity per unit
Net income per unit

(January 1, 2008 June 30, 2008)￥257,883￥7,121

12th Fiscal Period(information only)(July 1, 2007 December 31, 2007)￥257,432￥6,671

Net income per unit is computed by dividing net income by the weighted-average number of units outstanding
during the current fiscal period.
Diluted net income per unit has not been presented since no warrants and convertible bonds are outstanding.
(Note) Net income per unit was calculated based on the following data:(Thousands of Yen)

13th Fiscal Period

Net income
Amounts not attributable to ordinary unitholders
Net income attributable to ordinary investment units
Average number of units

54

12th Fiscal Period(January 1, 2008 June 30, 2008)￥4,451,222(information only)(July 1, 2007 December 31, 2007)￥4,169,475￥4,451,222￥4,169,475

625,000 units

625,000 units

Distribution Information
13th Fiscal Period

1. Retained earnings at end of period
2. Cash distributions(Distribution per unit)
3. Retained earnings carried forward(Yen)

12th Fiscal Period(January 1, 2008 June 30, 2008)(information only)(July 1, 2007 December 31, 2007)￥4,451,575,413￥4,169,727,716

4,451,250,000(7,122)
325,4134,169,375,000(6,671)
352,716

In accordance with the distribution policy stipulated in Article 28-2 of the Articles of Incorporation, JPR
will be able to distribute only to the extent of the profits and needs to distribute in excess of 90% of JPR's
distributable income as stipulated in Article 67-15 of the Special Taxation Measures Law. Based on thispolicy, JPR decided on a total distribution of 4,451,250,000 yen for the 13th fiscal period (4,169,375,000 yen
for the 12th fisical period). This is the maximum value arrived at when the number of units outstanding(625,000 units) is multiplied by an integer, within the limit of retained earnings for the respective fiscal
period. Furthermore, JPR does not make cash distributions in excess of the profit as stipulated in Article28-4 of the Articles of Incorporation.

55

Report of Independent Auditors

56

Statements of Cash Flows (Information Only)(For the six-month periods ended June 30, 2008 and December 31, 2007)(Thousands of yen)

13th Fiscal Period

12th Fiscal Period￥ 4,452,203￥ 4,170,538

1,819,525

1,810,540(January 1, 2008 June 30, 2008)(July 1, 2007 December 31, 2007)

CASH FLOWS FROM OPERATING ACTIVITIES :Income before income taxes
Depreciation
Amortization of corporate bond issuance costs

9,512

8,010

Interest income(14,869)(14,061)Interest expense

897,760

809,365(Increase) decrease in rental receivables(48,286)

Decrease in accrued consumption taxes refundable

44,096
120,563

Decrease (increase) in prepaid expenses

32,075(54,116)

Increase in trade accounts payable

69,21684,456

Increase in other accounts payable

23,774

3,738

Increase in accrued consumption taxes

43,439123,162

Increase in rental received in advance

28,01096,623

Decrease in entrusted fixed properties due to sale

13,982

Decrease in investment securities
Change in other current assets/liabilities
SubtotalInterest received
Interest paid
Income taxes refund (paid)

Net cash provided by operating activities

1,558,460(40,191)(14,802)7,272,168

8,760,557

14,86914,061(915,997)(685,883)

233,406(230,951)

6,604,447

7,857,784(22,145,989)(6,499,695)(471,016)(418,800)(1,543,218)(6,624)

CASH FLOWS FROM INVESTING ACTIVITIES :Purchases of property and equipment
Purchases of entrusted property and equipment
Purchases of intangible assets
Purchases of investment securities
Payments of leasehold and security deposits(344,651)(6,900)

Payments of leasehold and security deposits received(624,781)(139,812)

Proceeds from leasehold and security deposits received

853,372445,027

Payments of entrusted leasehold and security deposits received(174,842)(108,423)

Proceeds from entrusted leasehold and security deposits received

203,720

241,415(23,909,654)(6,831,563)

Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES :Proceeds from short-term borrowings

20,800,000

10,400,000

Repayments of short-term borrowings(6,008,000)(13,900,000)

Proceeds from long-term borrowings

16,000,000

Repayments of long-term borrowings
Proceeds from issuance of corporate bonds
Repayment of corporate bonds
Payments of corporate bond issuance cost

(4,783,000)
3,000,000

15,000,000(10,000,000)(22,632)(88,335)(4,172,992)(4,364,722)

Net cash provided by financing activities

19,596,375

2,263,942

NET CHANGES IN CASH AND CASH EQUIVALENTS

2,291,168

3,290,162

Distributions to unitholders

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIODCASH AND CASH EQUIVALENTS AT END OF PERIOD

31,297,578

28,007,415￥33,588,746￥31,297,578

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

Notes to Statements of Cash Flows(Thousands of yen)

Breakdown of cash and cash equivalents
Cash and deposits
Entrusted cash and deposits
Cash and cash equivalents

58

13th Fiscal Period

12th Fiscal Period(January 1, 2008 June 30, 2008)
As of June 30, 2008
￥18,461,764(July 1, 2007 December 31, 2007)
As of December 31, 2007
￥16,307,505

15,126,982￥33,588,746

14,990,073￥31,297,578

JPR Investment Policies (Reference)
A. INVESTMENT POLICIESBasic Policies
JPR's basic investment strategy centers on investment in urban commercial real estate. The Company will
invest primarily in real estate, which comprises superior urban office buildings and retail properties foundin thriving commercial areas, the land on which they are located, as well as in asset-backed securities thathave such real estate as their primary investments. In light of the returns and risks of these investments,
the Company will invest not only in Tokyo but will attempt to diversify into other cities so as to maximize
portfolio return.
The Company will diversify investments in terms of both tenants and properties, taking into accountthe amount of investment per property, and will thereby seek to achieve stable medium- and long-term
growth. Investment ratio targets are as shown on page 56 under "(3) Investment stance ii) Investment ratio
targets."
Note: For the definitions of "real estate" and "asset-backed securities that have real estate as their primary investments," please refer to the next section
under "2) Types of Investment Assets

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

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

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

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

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

Real Estate Asset

Target Ratios
By Asset Class

The target allocation ratio between office buildings and retail properties
based on acquisition price shall generally be 8:2

By Location

The target allocation ratio between Tokyo and other cities
based on acquisition price shall generally be 6:4

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

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

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

ii) Use
JPR's investment targets primarily comprise excellent office buildings (urban commercial facilities) and retailproperties found in thriving commercial areas. (The targets cover other assets including building leaseholdsof the office buildings and retail properties, the leaseholds and surface rights of the land on which they arelocated, and marketable securities and trust beneficiary interests backed by such real estate.)
JPR will determine the allocation ratio of these assets in the portfolio based on full considerations of theeconomic situations, real estate market trends and other factors for respective occasions. The target allocation
ratio between office buildings and retail properties based on acquisition price shall generally be 8:2.
iii) Region
JPR shall work to realize a diversification of the portfolio, not limited to Tokyo but investing in regional cities,
primarily in consideration of the earthquake risks and risks associated with individual market conditions and inorder to generate more cash flow.
The target allocation ratio between Tokyo (that combines Tokyo CBDs and Greater Tokyo) and other cities
based on acquisition price shall generally be 6:4. JPR shall determine the allocation ratio of the portfolio by
location based on full considerations of the economic situations, real estate market trends and other factors ofrespective regions.

The table below indicates the definitions of the regions.
RegionCategory

60

Tokyo CBDs

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

Greater Tokyo

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

Other Cities

All other areas in Japaniv) Tenants
Rental revenues from any individual tenant (total rental revenue when the tenant occupies multiple
compartments and/or properties) will, in principle, be limited to less than 10% of total rental revenues.
("Rental revenues" includes common charges, parking revenues and storage revenues, but does not include
additional usage fees such as after-hours air-conditioning charges.) This ratio may be exceeded, however, if
there is any potential for tenant changes or if warranted by general considerations of leasing conditions andother factors.
v) Asset-backed securities, etc. primarily investing in real estate
The total after-investment value of asset-backed securities shall, in principle, be limited to less than 10% of the
net worth of the Company. Investment in asset-backed securities assumes that there will be an opportunity toobtain the relevant property, etc., at the end of the asset-backed security period.
vi) Investment policies for development projects
The Company will, in principle, acquire only real estate that generates or is expected to generate stable rental
revenues or similar revenues at the time of acquisition.
The Company will not engage in development investments (projects in which the Company itself develops
property from land and builds buildings). However, the Company may invest in buildings under construction
by third parties prior to their completion if sufficient potential to secure tenants after construction isdetermined and the buildings are confirmed as non-development investments. In addition, the Company may
invest in rebuilding projects for properties that it has already acquired, provided that sufficient potential tosecure tenants after rebuilding is determined and the projects are confirmed as non-development investments.
vii) Equipment and fixtures investment policies
The Company will invest in equipment and fixtures in accordance with an efficient upkeep plan created foreach property and designed to maintain and improve the competitiveness of the property from medium- andlong-term perspectives. In principle, such investments will be within the scope of the depreciation expense of
the individual property, but final decisions will be made in light of the depreciation expense for the portfolio asa whole. However, repairs to common areas will be implemented quickly by the Company from the perspectiveof tenant operational policies, and reinforcements will be made quickly for buildings requiring earthquake
resistance reinforcements in light of the status of tenant operations.
viii) Insurance policiesa) Criteria for selecting underwriting insurance companies:
The Company will select fair underwriting insurance companies through independent brokers.
The underwriting insurance company will, in principle, have an insurance rating of A3 or A- or betterfrom Moody's Investors Service Inc. (referred to as "Moody's" hereinafter) or Standard & Poor's.
b) Earthquake insurance coverage criteria:
The decision to cover earthquake insurance will be made in light of comparisons between thepotential impact of the disaster and property insurance premiums based on the PML for the entire
portfolio. Earthquake insurance may be purchased individually for properties that have high PML.
Note : "PML" refers to the probable maximum loss in the event of an earthquake. PML may be calculated for individual properties
or for the portfolio as a whole. While there is no strict definition of PML (valuation methods will differ depending on the institution
conducting the survey), it is generally found by calculating the probable damage from the largest foreseeable earthquake during
the expected period of use (50 years is the useful lifetime ordinarily assigned to buildings; the largest foreseeable earthquake isa major earthquake of a size seen once every 475 years, having a 10% probability of occurring during any 50 year span). The figure
represents the ratio of projected expenses for restoration of damage to the price of reacquisition.

ix) Sales policya) The Company will select real estate, asset-backed securities that have real estate as their primary
investments, and other investments in its holdings to be sold based on overall considerations of thecurrent status of the asset to be sold, projections of its future profitability and changes in asset value,
and the asset allocation of the portfolio as a whole.
b) The Company will determine asset values each fiscal term and an investment policy committee will
study whether to sell or hold any property that has declined more than 20% in terms of appraisedvalue compared with book value. In addition, the Company may also consider the sale of otherproperties as it sees fit, as warranted by market conditions and other factors. The following are themain considerations in determining sales:
Market forecast
Development forecast for the surrounding area
Profitability forecast
Estimated amount of future investments
Forecast changes in valuation
Considerations of the portfolio as a whole (diversification by geographical location, tenant andasset class, etc.; impact on dividends, etc.)61x) Value-up properties
Value-up properties refer to those properties that exhibit the potential for an increase in profitability and asset
value, and have an immediate income stream on acquisition, along with any of the following characteristics:
1. An occupancy rate of less than 80% at the time of acquisition
2. Significant investment return following effective renovation work
In principle, value-up properties occupy a maximum 15% of the total property portfolio (based on acquisition
price). The additional acquisition of value-up properties is also subject to a total portfolio occupancy rate inexcess of 90%.
Utilizing the know-how of its asset management company, the Company implements the following key strategies
in the management of value-up properties:
1. Reinforce leasing activities with the aim of improving the occupancy rate
2. Carry out effective renovations to enhance market competitiveness3. Implement cost controls by increasing efficiencies in management structure
Value-up properties will be reclassified as core properties, as defined below, when the Investment
Committee judges that the properties have realized enhanced values. The Company will consider thesale of value-up properties as one method to realize asset value appreciation.
xi) Core properties
Core properties refer to office buildings other than value-up properties. Core properties are
positioned as those properties that contribute to the profit stability of the overall portfolio.

Investment Standards
When investing in individual real estate properties, asset-backed securities that have realestate as their primary investments, or other investments, the Company will, prior to making
the investment, perform a general evaluation that considers the current status, future
profitability, risk, location, building and facilities maintenance and management, deteriorationand obsolescence, earthquake resistance, rights, contracts with current tenants, environment,
topography, as well as other factors.
After acquisition of real estate, asset-backed securities that have real estate as their primary
investments or other investments, the Company will make ongoing and effective investments
in facilities and equipment so as to maintain and improve the value and competitiveness of theasset, and will seek to stabilize and expand profitability by increasing revenues and reducing
costs.
The major specific investment criteria of the Company are as follows:i) Geographical location
Real estate to be invested in will be located in the following areas:a) Major urban areas: CBDs in Tokyo, Yokohama, Kawasaki, Chiba, Saitama, Nagoya, Osaka,
Kyoto and Kobeb) Other government-designated cities: CBDs in Sapporo, Sendai, Hiroshima, Fukuoka,
Kitakyushu and othersc) Other core cities such as prefectural capitals with populations of 300,000 or more
When investing in retail properties, the Company will identify and determine an appropriate
business area for the property; analyze the business area from a variety of perspectives,
including population, demographic trends, number of households and average income;appropriately measure the latent buying power and growth potential of the business area;and determine the suitability of the tenants and their businesses to the business area. The
Company will also study and analyze competitiveness from a variety of perspectives,
including current market competition, plans for the opening of competitive stores in thevicinity, and future room for development.
ii) Sizea) Office buildings
In principle, the Company will invest in office buildings with total floor space of at least 3,300
square meters and floor space of approximately 330 square meters for each standard floor above
the second story level.
b) Retail properties
In principle, the Company will invest in retail properties of an appropriate size in light of the
future growth potential of their areas, as determined by local characteristics, business area scale
and the standard property size for similar businesses.

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

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

b) Unit ownership
The Company will, in principle, reserve for itself at least 75% of the voting rights inmeetings attended by unit owners in order to assure sufficient latitude in improvements.
However, it may make individual decisions based on a general evaluation of the nature andcreditworthiness of other unit owners.
The Company shall, in order to assure sufficient latitude in disposal of the property, confirm
whether special contracts or other agreements providing for preferential purchasing rights or
options among the other owners will be executed, and whether restrictions will be placed on
the transfer of rights, and if so, the nature of these restrictions.
The Company will attempt to ensure the stability of revenues by confirming the operationsof the management union (reserves, liability ratios, insurance, etc.) and will take suchindividual measures as are required. (This may include, but is not limited to, increasing
accumulated amounts within the Company itself, or providing for insurance on the joint
areas and registration of land rights separately from the management union.)

63c) Leaseholds
The Company will, in principle, invest in leaseholds as specified in the old Leasehold Law(Law No. 49 of 1921, including all subsequent amendments) and the Land and Building
Leasing Law (Law No. 90 of 1991, including all subsequent amendments).
The Company will carefully study the nature of the proprietary right holder of land and will
make its decision after fully investigating the impact of the provisions for rent revisions,charges for renewing the leasing contract, charges for approval of rebuilding proposals,
charges for the approval of sales proposals and other factors in concerning profitability.
d) Collateral rights and usufructuary rights
The Company will confirm the existence of mortgages or other collateral rights on the
proposed property at the time of purchase, and the possibility of extinguishing such rights on
closing.
The Company will make its decision after confirming the existence of usufructuary rights(for example, surface rights or easements) set forth by third parties and the impact that suchrights will have on profitability.

vii) Investment amounta) Minimum investment per property
The minimum investment per property (only the purchasing price, exclusive of taxes,
acquisition costs, etc.) will, in principle, be more than 1 billion yen. A property can beacquired for a lesser amount under the following circumstances:
When acquiring part of a property valued in total at over 1 billion yen
When acquiring a property with an appraisal value of more than 1 billion yen, but acquired
after negotiation for a lesser amountIn cases where several properties are being acquired together as a package and theconcerned property is a subordinate assetb) Maximum investment per property
The ceiling on the investment amount per property will be one-third of the total investment
in real estate, asset-backed securities and other investments already held. Generally, however,properties that exceed this ratio can be acquired in cases where this is deemed advisable. The"total investment in real estate, asset-backed securities and other investments already held"refers to the total appraised value of investments up to the previous period, plus the price ofinvestments purchased in the current period (exclusive of taxes, acquisition costs, etc.), plus
the amount to be invested in the new property (exclusive of taxes, acquisition costs, etc.).
c) Restrictions on acquisition price
The acquisition price for investments including real estate and asset-backed securities will, in
principle, be limited to 105% of the appraised value of the investments. However, provided
that the property acquisition does not cause the total property acquisition fund to fall below
the NOI yield criterion for the current period, the above-mentioned appraised-value upper
limit of 105% can be exceeded in the following cases:
Properties that, by long-term fixed leasing contracts, are forecast to contribute to stable
cash flow and those that are expected to generate a certain profit for dividends in themedium- to long-term
Properties that, in terms of scale, location or general standpoint, are judged to contributeto an increase in total fund quality and can be expected to generate a certain profit for
dividendsviii) Selection guidelines concerning real estate acquisition ownership type
The Company acquires real estate under direct ownership or on an entrusted basis, acquiring
beneficiary interests to the property. The decision as to which form of ownership theCompany will take is determined after considering the requirements of the existing owner,
the cost of transferring rights and a number of other factors.

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

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

Borrowings and Issuance of Corporate Bonds
I) Basic policies
The Company will seek to actively expand the size of assets and maintain stable cash distributions toinvestors by achieving an effective combination of stable long-term fund-raising and flexible shortterm fund-raising.
II) Loan to value (LTV)
Loan to value (LTV) refers to a ratio calculated as shown below and will be used as a measurementof the ratio of liabilities to total assets of the Company.
LTV = (Borrowings + Corporate bonds) / Total assets
The Company will, in principle, maintain LTV at levels of no higher than 55%, but may temporarily
exceed this level due to the acquisition of properties or changes in appraised values.
Note: For purposes of this calculation, total assets refers to the amount shown in the assets column of the period-end balance sheet for the most recent
period prior to the calculation of LTV, and is found by adjusting the period-end book value of tangible fixed assets for the difference between the
period-end book value of the tangible fixed asset and its appraised value.

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

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

Commissioned General Tenant Agents
General tenant agencies will be commissioned to Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd.,
Taisei Corporation and other agents (Commissioned General Tenant Agents).

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

D. OTHER INVESTMENT POLICIESThe Company will administer its assets in such a way that the ratio of the total price of designated realestate (real estate, real estate leasing rights, surface rights, or real estate in trusts for which real estate,land leaseholds, or surface rights are the entrusted assets) to the total price of designated assets ownedby the Company is 75% or more.
The Company may modify the above ratios at any time as warranted by factors such as funding trends,
market trends, general economic conditions and real estate market trends.
Lending of assets in the portfolioI) The Company may lend (for such purposes as parking space and the installation of billboards) realestate, real estate leasing rights and surface rights from among the assets listed on page 59 in "A.
Investment Policies (2) Types of investment assets" in order to more efficiently administer assets andachieve higher investment performance.
II) If the lending of real estate described in a) above results in the acceptance of leasehold and security
deposits or other similar cash funds, the acceptance of these funds will follow the guidelines listed in"B. Financial Policies (1) Fund management policies I) Leasehold and security deposits," on page 65.
III) The Company shall not lend assets other than real estate, real estate leasing rights and surface rights.

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

Distributable Amount

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

2 Determining Amount of Distribution

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

Retained Earnings

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

Distribution of Cash Exceeding Earnings

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

Method of Distribution

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

Extinctive Prescription

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

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Investor Information
Address of Japan Prime Realty Investment Corporation (JPR)
9-9 Yaesu 1-chome, Chuo-ku, Tokyo 103-8285, Japan

Date of Establishment
September 14, 2001

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders
More than once every two years

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

Stock Transfer Agency Division
Mizuho Trust & Banking Co., Ltd.
1-17-7 Saga, Koto-ku, Tokyo 135-8722

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

Web Site

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

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

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

Cash distributions September

AugustAnnouncement of the fiscal
period results

Appropriate disclosure
on web site

June

Fiscal period ends

March
April

February

Announcement of
the fiscal period results

Cash distributions

Release of Business Report

This document contains a translation of selected information described in the Financial Statements and Performance Information Report
prepared pursuant to the Investment Trust Law of Japan and the Financial Instruments and Exchange Law, for the period from January
1, 2008 to June 30, 2008 of Japan Prime Realty Investment Corporation (JPR). This English language document was prepared solely
for the convenience of and reference by non-Japanese investors and is not intended to constitute a disclosure document. The Japanese
language Financial Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely identicalconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if
there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English documents,
the original Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.,
nor any of their respective directors, officers, employees, partners, unitholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of English translations or the selection of portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than contained in this document
in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon
as having been authorized by JPR, Tokyo Realty Investment Management, Inc., or any of their respective directors, officers, employees,
partners, unitholders, agents or affiliates. The financial statements of JPR have been prepared in accordance with generally accepted
accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions. Many provisions of this document contain information that constitute forward-looking statements.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may
differ materially from those in the forward-looking statements as a result of various factors.

68