Fifth Fiscal Period Results(January 1, 2004 – June 30, 2004)

August 2004

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Japan Prime Realty Investment Corporation

This document contains a translation of selected information described in the Financial Report (Kessan Tanshin) dated
August 19, 2004 prepared under the timely disclosure requirements of the Tokyo Stock Exchange, as well as the Financial
Statements and Performance Information Report written pursuant to the Investment Trust Law of Japan, for the period
from January 1, 2004 to June 30, 2004 of Japan Prime Realty Investment Corporation (“JPR”).
This English language document was provided solely for the convenience of and reference by non-Japanese
investors and is not intended to constitute a disclosure document. The Japanese language Financial Report, Financial
Statements and Performance Information Report for the aforementioned period should be referred to as the originals of
this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely
identical concepts of the equivalent Japanese terms. The figures presented in the financial statements may differ from theCompany’s Financial Report (Kessan Tanshin) due to rounding. With respect to any and all terms herein, including without
limitation, financial statements, if there exist any discrepancies in the meaning or interpretation thereof between theoriginal Japanese documents and English documents contained herein, the original Japanese documents will govern themeaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc. nor any of their respective
directors, officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for the completeness,
appropriateness or accuracy of English translations or the selection of the portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than as contained inthis document in relation to the matters set out in this document, and if given or made, such information or
representation must not be relied upon as having been authorized by JPR, Tokyo Realty Investment Management, Inc. or
any of their respective directors, officers, employees, partners, shareholders, agents or affiliates.
The financial statements of JPR have been prepared in accordance with generally accepted accounting
principles 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 constitutes 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.
Contact Information:
Tokyo Realty Investment Management, Inc.
Investor Relations Group
Takeshi Maki+813-3516-1606

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Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation is listed on the First Section of the Tokyo Stock Exchange with the securities code
number 8955. (URL http://www.jpr-reit.co.jp/jpr_e/index.html)
Board of Directors Meeting: August 19, 2004
Payment of Dividends: September 8, 2004 (planned)

PERFORMANCE (January 1, 2004 – June 30, 2004)(1) Business Results(Amounts less than a million yen discarded)(Millions of yen, except per unit information)

Operating
Revenues%
ChangeNet
Operating
Profits%
ChangeRecurring
Profits%
ChangeNet Income%
ChangeJun. 30, 2004

6,790

(5.8%)

3,061(4.3%)

2,615(6.0%)

2,614(6.0%)

Dec. 31, 2003

6,421

(22.0%)

2,933(30.6%)

2,468(24.0%)

2,467(24.0%)
(Yen)

EPU

Net
Income/NAV<Reference>(Annualized)

Recurring
Profits/Total Assets<Reference>(Annualized)

Recurring Profits/
Operating Revenues

Jun. 30, 2004

6,080

2.9%

(5.7%)

1.5%(3.1%)

38.5%

Dec. 31, 2003

5,895

3.3%

(6.5%)

1.6%(3.2%)

38.4%

Notes: 1. EPU is calculated based on the average number of investment units during the term, as follows
Fiscal period ended Dec. 31, 2003:
418,502 units
Fiscal period ended Jun. 30, 2004:
430,000 units
2. Changes in accounting standards: No
3. Percentages for operating revenues, net operating profits, recurring profits and net income show changes from the previous fiscal period, are rounded to
the nearest first decimal place
4. Net income/NAV and recurring profits/total assets are calculated based on the average of unitholders’ equity (NAV) and total assets as of the beginningand end of the period
5.
Annualized result =For the period ended Dec. 31,2003:
Actual result/Actual investment days (184 days) x 365 days
For the period ended Jun. 30, 2004:
Actual result/Actual investment days (182 days) x 365 days

(2) Cash Distributions(Millions of yen, except DPS and exceeding profit distribution per unit)

DPU

Distribution
AmountExceedingProfitDistribution Per
Unit

ExceedingProfitDistribution
AmountDividend
Payout Ratio

Distribution/
NAV

Jun. 30, 2004

6,081

2,614

―

―

100.0%

2.9%

Dec. 31, 2003

5,738

2,467

―

―

99.9%

3.3%

Note: Dividend payout ratio is rounded to the nearest first decimal place.

(3) Financial Position(Millions of yen)

Total Assets

NAV

NAV Ratio

NAV Per Unit

Jun. 30, 2004

182,253

91,72850.3%

213,322

Dec. 31, 2003

156,576

91,581

58.5%

212,979

Note: Number of units outstanding at the end of the period
Fiscal period ended Dec. 31, 2003:
430,000 units
Fiscal period ended Jun. 30, 2004:
430,000 units

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FIFTH FISCAL PERIOD HIGHLIGHTS

Market Environment
Office Building Leasing
In the fiscal period ended June 30, 2004, vacancy rates, primarily for large-sized properties in Tokyo’s
market for leased office space, began to improve, as concerns regarding the “Year 2003 Problem” waned.
This was due to a concentration in supply of high-specification large-sized buildings in the area, as well as
the drop in lease rentals, which attracted corporate tenants undergoing business restructure andintegration-driven relocation. Initial signs that the decline in lease rentals had bottomed out further
bolstered conditions, as well as an upswing in the operating environment and an easing of theconcentration in supply of office space, prompting demands to meet corporate expansion relocationneeds. Conditions for medium- and small-sized properties, however, remained harsh as the attraction
toward large-sized buildings remained strong. As the market becomes increasingly selective in terms oflocation, scale and building age, smaller sized buildings are expected to experience difficult conditions forthe foreseeable future.
In regional areas, vacancy rates remained high. Although conditions continue to be difficult,vacancy rates in Sapporo, Niigata, Osaka, Takamatsu and Fukuoka have shown signs of gradualimprovement since the beginning of the year. Overall conditions, however, in regional areas continue toexperience an adjustment phase. The recovery in corporate activity has not translated into increased
demand for office space and companies continue to rationalize operations, relocate to smaller premises
and reduce costs. As a result, property owners are forced to lower lease rentals in an effort to retain theirtenant base.
Retail Property Leasing
Conditions in the retail property leasing market were characterized by an upswing, driven by export
activity and the digital home appliance sector. Business results were significantly improved for
manufacturing, department store and retail businesses. There were positive signs that consumer spending
was on the rise, with retail sales at department stores, excluding corporate demand, increasing.
Notwithstanding these positive factors, however, concerns remain with regard rising interest rates andthe appreciation of the yen. As a result, the extent to which the market will recover is shrouded in
uncertainty.
Rents in the retail property leasing market experienced little change from the previous fiscal
period and remain strong in major upmarket commercial districts, buoyed by a willingness on the part ofretailers to open new stores in these areas. In addition, rents continue to fare comparatively well amid thegrowing shift from suburban to urban areas by large-scale home appliance stores, home centers andshopping centers. In suburban areas, roadside store rents are on the decline with mounting pressure forfurther rental reductions at the time of new contracts and renewals in line with the drop in retail store
sales.

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Real Estate
As in the previous fiscal period, property sales continue to pick up owing to corporate restructure andmoves to dispose of non-performing loans prior to the introduction in fiscal 2005 of asset-impairment
accounting. Demand from overseas investment funds and the increasing influence of Japan’s real estate
investment trust (J-REIT) market has raised the level of competition for prime real estate with concerns
over an increase in property prices.
Acquisitions
Under these circumstances, JPR strove to create a stable revenue stream, improve the balance of its
portfolio, and to diversify its asset holdings by geographical location and type of use. To this end, basedon strict selection criteria the Company acquired prime office buildings that are expected to generate
stable cash flow. In the fiscal period under review, JPR acquired the Doujima F Building on January 23,
2004 (for an investment of ¥2,140 million), the Kawaguchi Center Building on February 13, 2004
(proprietary and co-ownership for an investment of ¥8,100 million), the SEF Building (for an investmentof ¥3,250 million) on March 1, 2004, the Kenwa Building on May 28, 2004 (for an investment of ¥5,100
million), the Oval Court Ohsaki Mark West on June 1, 2004 (partial ownership of land and unit
ownership of the building for an investment of ¥3,500 million), and the Semba Fukuoka Building on
June 11, 2004 (for an investment of ¥1,920 million).
As a result of these acquisitions, JPR held 38 properties as of June 30, 2004, totaling¥163,650 million on an acquisition price basis, with total leasable floor space of 256,329.13 m2 and 437
tenants.
Doujima F Building
Location

2-42-1, Sonezakisinchi, Kita-ku, Osaka-shi, Osaka

Acquisition Date

January 23, 2004

Acquisition Price¥2,140 million (excluding acquisition costs, property tax, and city planning tax)

Type of Ownership

Full ownership

Total Site Area

668.11 m2

Total Floor Area

5,696.01 m2

Total Leasable Floor Space

3,941.27 m2

Type of Structure

SRC B2/9F

Completion Date

October 1993

Kawaguchi Center Building
Location

4-1-8, Honcho, Kawaguchi-shi, Saitama Prefecture

Acquisition Date

February 13, 2004

Acquisition Price¥8,100 million (excluding acquisition costs, property tax, and city planning tax)

Type of Ownership

Land: Proprietary and co-ownership
Bldg.: Unit ownership

Total Site Area

4,524.61 m2
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Total Floor Area

28,480.85 m2

Total Leasable Floor Space

15,478.43 m2

Type of Structure

S, SRC B2/15F

Completion Date

February 1994

SEF Building
Location

1-3-5 Matsugaya, Taito-ku, Tokyo

Acquisition Date

March 1, 2004

Acquisition Price¥3,250 million (excluding acquisition costs, property tax, and city planning tax)

Type of Ownership

Land: Full ownership
Bldg.: Full ownership

Total Site Area

1,242.97 m2

Total Floor Area

8,490.44 m2

Total Leasable Floor Space

6,512.44 m2

Type of Structure

SRC B1/8F

Completion Date

October 1992

Kenwa Building
Location

4-7-15 Kudan-minami, Chiyoda-ku, Tokyo

Acquisition Date

May 28, 2004

Acquisition Price¥5,100 million (excluding acquisition costs, property tax, and city planning tax)

Type of Ownership

Land: Full ownership
Bldg.: Full ownership

Total Site Area

1,058.04 m2

Total Floor Area

5,888.82 m2

Total Leasable Floor Space

4,181.50 m2

Type of Structure

SRC B1/9F

Completion Date

March 1989

Oval Court Ohsaki Mark West
Location

2-17-1, Higashi-gotanda, Shinagawa-ku, Tokyo

Acquisition Date

June 1, 2004

Acquisition Price¥3,500 million (excluding acquisition costs, property tax, and city planning tax)

Type of Ownership

Land: Partial ownership
Building: Unit ownership

Total Site Area

4,006.00 m2

Total Floor Area

28,575.80 m2

Total Leasable Floor Space

4,088.42 m2

Type of Structure

SRC B2/17F

Completion Date

June 2001

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Semba Fukuoka Building
Location

2-6-12 Hakataekimae, Hakata-ku, Fukuoka-shi, Fukuoka

Acquisition Date

June 11, 2004

Acquisition Price¥1,920 million (excluding acquisition costs, property tax, and city planning tax)

Type of Ownership

Land: Full ownership
Building: Full ownership

Total Site Area

680.63 m2

Total Floor Area

3,874.81 m2

Total Leasable Floor Space

3,349.57 m2

Type of Structure

SRC 8F

Completion Date

June 1993

Property Portfolio Asset Management
Occupancy Rate
JPR formulates strategies for each building within its existing portfolio and actively implements a variety
of measures to attract and cultivate new tenants. At the same time, JPR undertake renovation, repairs andmaintenance, in an effort to distinguish our portfolio from that of competitors. In particular, JPR
upgraded air conditioning facilities at the JPR Takamatsu Building and the Asahi-Life Takamatsu 2nd
Building and completed renovations to the common areas of the Asahi-Life Fukuoka 3rd/4th Building
during the fiscal period under review with the aim of enhancing competitiveness. Amid continued
difficult conditions in the market for office buildings in major cities in regional areas, the property
portfolio occupancy rate stood at 93.2% as of June 30, 2004, up 0.5 of a percentage point from the end of
the previous period.
Cost Reductions
Following changes to the scope of building administration, JPR successfully reduced building
management costs at the JPR Ikebukuro Building by approximately 30% and at the MS Shibaura Building
by approximately 10%. As a part of efforts to consolidate property management companies, property
management of the Asahi-Life Yokohama Nihon Odori Building and the Tsurumi fuga 1 Building wastransferred to Tokyo Tatemono Co., Ltd. As a result, JPR reduced property management expenses.
Value-Enhanced Properties
Consistent with JPR’s endeavors to increase profitability, renovations to the JPR Ikebukuro Building,which began during the third fiscal period, were completed at the end of March 2004. While theoccupancy rate as of June 30, 2004 stood at 76.8%, we are making aggressive efforts to attract new
tenants.
In addition, of the six properties identified as value-enhanced properties, excluding the JPR
Ikebukuro Building, the occupancy rates of three buildings improved by more than 10% compared withthe end of the previous fiscal period.
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Funds Procurement
In its fifth fiscal period, JPR continued to adopt strategies aimed at ensuring a stable financial position.
The Company worked to steadily expand its property portfolio and procured short-term funds in aneffort to promote medium- and long-term stability and mobility. In addition, JPR issued corporate bondsand established a commitment line to further diversify its source of funds. As a result of these efforts, thebalance of total outstanding debt as of June 30, 2004 stood at ¥55,160 million, with the balance ofcorporate bonds totaling ¥22,000 million. In an effort to reduce exposure to the risk of potential
increases in interest rates, 67.3% of this amount is long-term interest-bearing debt with a maturity ofmore than one year (average maturity 4.9 years, see Note 1). The average interest rate during the fiscal
period ended June 30, 2004 was 1.2% (see Note 2). The interest-bearing debt ratio was 46.4% (see Note3), and the interest-bearing debt to total assets ratio was 42.3% (see Note 4).
Details of the Company’s corporate bonds and corporate credit ratings are as follows. JPR
also maintains a commitment line limit of ¥4,000 million. As of June 30, 2004, the facility is unutilized.
Unsecured Corporate Bonds

First Series of Unsecured Corporate Bonds
Name of the Bond Issue:

Japan Prime Realty Investment Corporation’s First Series of Unsecured Bonds(The unsecured bonds rank pari passu at least equally in right of payment with all otherunsecured indebtedness. Private placement with transfer restrictions to qualified institutional
investors.)

Total Issue Amount:¥10,000 million

Subscription Date:

January 29, 2004

Interest Rate:

0.84% p.a.

Payment Date:

February 12, 2004

Collateral:

Unsecured, unguaranteed

Issue Price:¥100 with a par value of¥100

Maturity Date andPrincipal redemption in full on February 12, 2008. Bonds may be redeemed at any time from

Redemption Method:

the day immediately following the payment date.

Second Series of Unsecured Corporate Bonds
Name of the Bond Issue:

Japan Prime Realty Investment Corporation’s Second Series of Unsecured Bonds(The unsecured bonds rank pari passu at least equally in right of payment with all otherunsecured indebtedness. Private placement with transfer restrictions to qualified institutional
investors.)

Total Issue Amount:¥7,000 million

Subscription Date:

January 29, 2004

Interest Rate:

1.38% p.a.

Payment Date:

February 12, 2004

Collateral:

Unsecured, unguaranteed

Issue Price:¥100 with a par value of¥100

Maturity Date andPrincipal redemption in full on February 12, 2010. Bonds may be redeemed at any time from

Redemption Method:

the day immediately following the payment date.

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Third Series of Unsecured Corporate Bonds
Name of the Bond Issue:

Japan Prime Realty Investment Corporation’s Third Series of Unsecured Bonds(The unsecured bonds rank pari passu at least equally in right of payment with all otherunsecured indebtedness. Private placement with transfer restrictions to qualified institutional
investors.)

Total Issue Amount:¥5,000 million

Subscription Date:

January 29, 2004

Interest Rate:

2.32% p.a.

Payment Date:

February 12, 2004

Collateral:

Unsecured, unguaranteed

Issue Price:¥100 with a par value of¥100

Maturity Date andPrincipal redemption in full on February 12, 2014. Bonds may be redeemed at any time from

Redemption Method:

the day immediately following the payment date.

Corporate Credit Ratings
Ratings Date
October 29, 2003

January 16, 2004

Ratings Agency

RatingStandard & Poor’s

Long-term corporate credit rating:A-

Short-term corporate credit rating:A-2

Outlook:

StableRating and Investment Information, Long-term preferred debt rating:

A+

Inc.
January 23, 2004

Moody’s Investor Service

Long-term corporate credit rating:

A3

Outlook:

StableFirst, Second and Third Series of Unsecured Bonds
Ratings Date

January 29, 2004

Ratings Agency

RatingStandard & Poor’sA-

Rating and Investment Information, Inc.

A+

Moody’s Investor Service

A3

Notes:
１. Average maturity of long-term interest-bearing debt, which is interest-bearing debt with a maturity of more than
one year, is calculated using the weighted average of each debt over the number of years to repayment starting at
the end of the fiscal period ended June 30, 2004. The balance of outstanding long-term interest-bearing debt stoodat ¥51,960 million as of June 30, 2004.
２. Average interest rate is the weighted-average interest rate of outstanding debt as of June 30, 2004.
３. Interest-bearing debt ratio (%) = Interest-bearing debt / (Interest-bearing debt + Total unitholders’ equity) x 100
Total unitholders’ equity was ¥89,110 million as of June 30, 2004.
４. Interest-bearing debt to total assets ratio (%) = Interest-bearing debt / Period-end total assets x 100
Total assets as of June 30, 2004 were ¥182,250 million.

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FORECASTS FOR SIXTH FISCAL PERIOD ENDING DECEMBER 31, 2004
(Millions of yen, except DPU and exceeding profit distribution per unit)

Operating
Revenues

Net
Operating
Profits

7,488

3,256

Sixth Fiscal PeriodEnding December
31, 2004

Recurring
Profits

DPU
Net Income(excluding exceeding profit
distribution per unit)

Exceeding Profit
Distribution Per
Unit

2,580

6,000

−

2,581

Reference: Estimated EPU for the fiscal period: ¥6,000

The above-mentioned forecasts are based on “Assumptions for the Sixth Fiscal Period Forecast (from July 1,
2004 to December 31, 2004)” in this Financial Report. In addition, based on an average month-end occupancy
rate of 94.7% and the premise that “Assumptions for the Sixth Fiscal Period Forecast” will carry through for theduration of the seventh fiscal period, forecasts for the seventh fiscal period ending June 30, 2005 are as follows.
(Millions of yen, except DPU and exceeding profit distribution per unit)

Operating
Revenues

Net
Operating
Profits

7,426

3,133

Seventh Fiscal
Period Ending June30, 2005

Recurring
Profits

DPU
Net Income(excluding exceeding profit
distribution per unit)

Exceeding Profit
Distribution Per
Unit

2,451

5,700

−

2,452

The aforementioned forecasts are based on assumptions and information available to management as of thedate of this report. As a result, actual net income and distributions will be subject to changes in market
conditions. Accordingly, the forecasts do not guarantee any cash distribution amounts.
Assumptions for the Sixth Fiscal Period Forecast(July 1- December 31, 2004)
Item
Calculation period

Assumption
From July 1, 2004 to December 31, 2004 (184 days)
As of June 30, 2004, the Company owned 38 properties. The Company purchased the Shinjuku Square Tower on July 2, 2004

Properties owned

for a total of 39 properties. The average monthly occupancy rate for the period is forecast at 93.4%.
Actual number of properties owned may change due to the subsequent acquisition or sale of properties.

Investment units issued

Calculations are based on 430,000 investment units issued and outstanding as of June 30, 2004
As of June 30, 2004, the interest-bearing debt ratio was approximately 46.4% (unitholders’ equity of ¥89,100 million,
short-term debt of ¥25,200 million, long-term debt of ¥29,966 million, and corporate bonds of ¥22,000 million). In theensuing period, together with cash on hand, the Company procured short-term debt of ¥10,500 million to assist in theInterest-bearing debt ratioacquisition of the Shinjuku Square Tower (acquisition price ¥10,000 million). The interest-bearing debt ratio is 49.6% after thistransaction.
The following formula is used to calculate the interest-bearing debt ratio:
Interest-bearing debt ratio = Interest-bearing debt / (Interest-bearing debt + Unitholders’ equity) x 100

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Property tax and urban planning tax applicable to the acquisitions of the Doujima F Building, the Kawaguchi Center Building,Operating costs
and expenses

the SEF Building, the Kenwa Building, the Oval Court Ohsaki Mark West, and the Semba Fukuoka Building, and the intended
purchase of the Shinjuku Square Tower after July 1, 2004 are included in the acquisition prices for each property and are notcharged as operating expenses. (However, property tax and urban planning tax charged to the owner on January 1, 2005 are
accounted for as operating expenses in the fiscal period ending June 30, 2005.)
Forecasts assume the distribution of an amount in excess of 90% of net income available for distribution, limited to the

Cash distributions

amount of profit. Forecasts also assume that there will be no distribution in excess of profit, in accordance with corporate
policy.

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Balance Sheets (as of June 30, 2004)
Assets(JPY in Thousands)

End of Fifth Period

End of Fourth Period(as of June 30, 2004)(as of Dec. 31, 2003)

Cash and bank deposits

4,228,269

4,149,910

Entrusted cash and deposits

13,771,669

12,961,107

Rental receivables

148,578

105,570

Prepaid expenses

148,559

117,33840

57

372,948―

59,534643

18,729,597

17,334,625

Buildings

4,352,438

2,540,669

Entrusted buildings

65,375,375

55,442,091

Entrusted structures

8,790

7,381

Machinery and equipment

40,122

11,227

1,189,928

1,054,813

289

290

12,398

8,781

Land

4,750,736

3,171,216

Entrusted land

92,389,190

80,524,150

1,869

2,444

(4,737,067)(3,538,923)

163,384,068

139,224,139

Deposits

10,10010,100Long-term prepaid expenses

4,450

7,322

Total Investments and Other Assets

14,55017,422(16.5%)

163,398,618

139,241,561

17.3%

125,393―

125,393―

182,253,608

156,576,186

Item% Change

Current Assets:

Deferred tax assets
Consumption tax refundable
Other current assets
Total Current Assets

8.0%

Fixed Assets:
Property and equipment:

Entrusted machinery and equipment
Tools, furniture and fixtures
Entrusted tools, furniture and fixtures

Entrusted construction in progress
Less: accumulated depreciation
Total Property and Equipment

17.4%

Investments and Other Assets:

Total Fixed Assets
Deferred Assets:
Corporate bond issuance costs
Total Deferred Assets
Total Assets
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Balance Sheets (as of June 30, 2004)
Liabilities(JPY in Thousands)
End of Fifth Period

End of Fourth Period(as of June 30, 2004)(as of Dec. 31, 2003)

890,323

979,067

Short-term debt

25,200,000

12,900,000

Accounts payable

352,922350,816

Accrued expenses

139,995

10,934930

1,027

Accrued consumption taxes―

56,860Rents received in advance

766,494555,270

27,350,664

14,853,974

Corporate bonds

22,000,000―

Long-term debt

29,966,000

39,566,000

901,524

484,079

10,306,735

10,090,893

Total Long-Term Liabilities

63,174,259

50,140,972

26.0%

Total Liabilities

90,524,923

64,994,946

39.3%

89,113,804

89,113,804

Retained earnings

2,614,881

2,467,436

Total Unitholders’ Equity

91,728,685

91,581,240

0.2%

Total Liabilities and Unitholders’ Equity

182,253,608

156,576,186

16.4%

Item

% Change

Current Liabilities:
Trade accounts payable

Accrued income taxes

Total Current Liabilities

84.1%

Long-Term Liabilities:

Leasehold and security deposits received
Entrusted leasehold and security deposits
received

Unitholders’ Equity:
Unitholders’ capital
5,000,000 units authorized
430,000 units issued and outstanding

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Statements of Income and Retained Earnings (January 1, 2004 – June 30, 2004)(JPY in Thousands)
Item

Operating Revenues
Real estate rental revenues
Gain on sale of real estate
Operating Expenses
Real estate rental expenses
Asset management fees
Administrative service and custodian fees
Directors’ fees
Trust fees
Other operating expenses
Operating Profits
Non-Operating Revenues
Interest income
Management association settlement income
Other non-operating revenues
Non-Operating Expenses
Interest expense
Loan arrangement fees
Interest expense on corporate bonds
Amortization of corporate bond issuance costs
New unit issuance costs
Other non-operating expenses
Recurring Profits
Income Before Income Taxes
Income Taxes
Deferred Taxes
Net Income
Retained Earnings Brought Forward
Retained Earnings at End of Period

14

Fifth Fiscal Period

Fourth Fiscal Period(Jan. 1, 2004 –June 30, 2004)
6,790,658
6,790,658―
3,729,108
3,268,801
293,872
64,5295,700
42,44053,766
3,061,550
109,341
114
106,678
2,549(Jul. 1, 2003 –Dec. 31, 2003)
6,421,099
6,250,395
170,704
3,487,138
2,996,386
276,344
75,6075,700
38,68994,412
2,933,961
1,329
103
―
1,226

555,137
294,764
95,808113,262
25,079―26,224
2,615,754
2,615,754
953
16
2,614,785
96
2,614,881

466,923
350,649
30,704――82,0233,547
2,468,367
2,468,367
1,047
(38)
2,467,358
78
2,467,436%Change

5.8%

6.9%

4.3%
8,123.3%

18.9%

6.0%

6.0%
22.6%
6.0%

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Statements of Cash Flows (January 1, 2004 – June 30, 2004)

Fifth Fiscal Period(Jan. 1, 2004 –June 30, 2004)

Item
Cash Flows from Operating Activities:
Income before income taxes
Depreciation
Amortization of corporate bond issuance costs
Interest income
Interest expense
Increase in rent receivables
Decrease (Increase) in consumption tax refundable
Increase in prepaid expenses
Increase (Decrease) in trade accounts payables
Increase (Decrease) in accounts payable
Increase (Decrease) in accrued taxes
Increase in rents received in advance
Decrease in tangible fixed trust assets
Payment for long-term prepaid expenses
Change in other current assets/liabilities
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by operating activities(JPY in Thousands)
Fourth Fiscal
Period(Jul. 1, 2003 –Dec. 31, 2003)

2,615,754
1,200,523
25,079(114)
408,026(43,008)(372,948)(31,221)(88,743)(12,603)(56,860)
211,224―(3,900)(51,195)
3,800,014
114(278,965)(1,050)3,520,113

2,468,367
1,044,355―(103)
350,649(41,796)
127,735(11,708)
206,818
18,56356,86024,026418,919―
59,176
4,721,861
103(372,078)(968)
4,348,918

Cash Flows from Investing Activities:
Purchases of property and equipment
Purchases of entrusted property and equipment
Payment for leasehold and security deposits received
Proceeds from leasehold and security deposits received
Payment for entrusted leasehold and security deposits received
Proceeds from entrusted leasehold and security deposits received
Net cash used in investing activities(3,420,184)(21,941,192)(25,262)442,706(1,272,811)
1,488,654(24,728,089)(4,721,223)(10,454,938)(11,629)
373,594(5,997,449)
1,361,052(19,450,593)

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

25,200,000(12,900,000)
1,000,000(10,600,000)
22,000,000(150,472)―(2,452,631)
22,096,897
888,921
17,111,017
17,999,938

6,130,000(22,730,000)―(434,000)――
32,131,804(1,988,940)
13,108,864(1,992,811)
19,103,828
17,111,017

15

CONSOLIDATED

Japan Prime Realty Investment Corporation

Subsequent Events
There were no subsequent events of a material nature.

16

CONSOLIDATED

Japan Prime Realty Investment Corporation

Reference
１. Acquisitions
Shinjuku Square Tower
Location

6-22-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo

Type of Ownership

Co-ownership of land ; Unit ownership of building.

Total Site Area

8,409.52 m2 (Net area to be acquired by JPR: 2,463.57 m2)

Total Floor Area

78,796.00 m2

Type of Structure

S, RC, SRC B4/30F

Completion

October 1994

Number of Tenants

1

Total Leasable
Space

Floor 27,659.37 m2

Total
Space

Floor 27,659.37 m2

LeasedOccupancy Rate

100%

Acquisition Price¥10,000 million

Type of Asset

Beneficiary interest

Acquisition Date

July 2, 2004

17

CONSOLIDATED

Japan Prime Realty Investment Corporation

Real estate portfolio after property acquisition (as of June 30, 2004)
Area

Location

Acquired

OfficeKanematsu Bldg.

Chuo-ku, Tokyo

Dec. 2001

16,2769.9%

12,700

OfficeKanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 2001

2,874

1.8%

2,480

OfficeJPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 2001

2,100

1.3%

1,850

Nov. 2001

1,670

1.0%

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

Nov. 2002

0.3%
1.4%

2,140

Crest Yasuda Bldg.

Chiyoda-ku, Tokyo

Jun. 2002

4,000

2.4%

3,250

OfficeMS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 2003

11,2006.8%

11,300

OfficeGotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 2003

2,920

1.8%

2,870

OfficeFukuoka Bldg.

Chuo-ku, Tokyo

Oct. 2003

1,800

1.1%

1,798

OfficeKenwa Bldg.

Chiyoda-ku, Tokyo

May. 2004

5,100

3.1%

5,080

OfficeOval Court Ohsaki MarkWest

Shinagawa-ku, Tokyo

Jun. 2004

3,500

2.1%

3,400

RetailJinnan 1-chome Bldg.

Shibuya-ku, Tokyo

Jun. 2003

12,000

7.3%

12,10063, 990

39. 1%

58, 968

Arca East

Sumida-ku, Tokyo

Nov. 2001

5,880

3.6%

5,760

OfficeJPR Chiba Bldg.

Chiba, Chiba

Dec. 2001

2,350

1.4%

2,085

OfficeAsahi-Life Yokohama Nihon
Odori Bldg.

Yokohama,
Kanagawa

Nov. 2001

2,927

1.8%

2,650

OfficeJPR Ikebukuro Bldg.

Toshima-ku, Tokyo

Jun. 2002

2,040

1.2%

2,150

OfficeShinyokohama 2nd Center
Bldg.

Yokohama,
Kanagawa

Sep. 2002

920

0.6%

1,020

OfficeKawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 2004

8,100

4.9%

8,180

OfficeSEF Bldg.

Taito-ku, Tokyo

Mar. 2004

3,250

2.0%

3,330

RetailTanashi ASTA

Nishitokyo, Tokyo

Nov. 2001

10,200

6.2%

10,830RetailTsurumi fuga 1

Yokohama,
Kanagawa

Nov. 2001

OfficeSubtotal

Other
Cities550
2,220

OfficeSubtotal

GreaterTokyo

Appraisal Valueas of June 30, 2004
(yen in millions)

Property Name

OfficeTokyo
CBDs

Acquisition Price% of Total(yen in millions)

Type

3,040

1.9%

3,173

38, 707

23. 7%

39, 178

OfficeNiigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 2001

2,140

1.3%

2,035

OfficeMeiji Yasuda-Life Osaka
Umeda Bldg.

Osaka, Osaka

Dec. 2001

8,300

5.1%

8,570

OfficeTokyo Tatemono Honmachi
Bldg.

Osaka, Osaka

Nov. 2001

4,150

2.5%

3,990

OfficeAsahi-Life Takamatsu 2nd
Bldg.

Takamatsu, Kagawa

Nov. 2001

872

0.5%

741

OfficeJPR Takamatsu Bldg.

Takamatsu, Kagawa

Dec. 2001

2,130

1.3%

1,330

OfficeJPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 2001

2,900

1.8%

2,660

OfficeAsahi-Life Fukuoka 3rd/4th
Bldg.

Fukuoka, Fukuoka

Nov. 2001

2,873

1.8%

2,610

OfficeJPR Naha Bldg.

Naha, Okinawa

Nov. 2001

1,560

1.0%

1,470

OfficeNorth 33 Bldg.

Sapporo, Hokkaido

Jun. 2002

3,700

2.3%

2,910

OfficePark East Sapporo

Sapporo, Hokkaido

Jun. 2002

2,150

1.3%

1,850

OfficeSompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 2002

3,150

1.9%

3,180

OfficeSompo Japan Wakayama
Bldg.

Wakayama,
Wakayama

Jun. 2002

1,670

1.0%

1,620

OfficeTenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 2002

2,810

1.7%

2,590

OfficeSK Hiroshima Bldg.

Hiroshima,
Hiroshima

Oct. 2002

947

0.6%

862

OfficeNagoya Kowa Bldg.

Nagoya, Aichi

Sep. 2003

4,550

2.8%

4,597

OfficeDoujima F Bldg.

Osaka, Osaka

Jan. 2004

2,140

1.3%

2,150

OfficeSemba Fukuoka Bldg.

Fukuoka, Fukuoka

Jun. 2004

1,920

1.2%

1,950

May. 2003

8,000
7.9%

11,800RetailKuraray Nissay Bldg.

Osaka, Osaka

Jul. 2003

5,000
13,000Subtotal
Total

1860, 962

37. 2%

56, 915

163, 659

100. 0%155, 061

CONSOLIDATED

Japan Prime Realty Investment Corporation

Real estate portfolio after property acquisition (as of June 30, 2004)
Area

Type

Property Name

Leasable Area

# of
Tenants

Occupancy

Rental Revenue(yen in thousands)% of Total

OfficeKanematsu Bldg.

7,958.58㎡

10

97.5%

389,214

5.7%

OfficeKanematsu Bldg. Annex

2,291.13㎡

1

100.0%

102,843

1.5%

OfficeJPR Ningyo-cho Bldg.

OfficeTokyo
CBDs

93,3891.4%

62,1890.9%
0.4%

901.36㎡

3100.0%

30,421

3,006.80㎡

10

87.3%

92,6101.4%

3,265.34㎡

9100.0%

122,321

1.8%

OfficeMS Shibaura Bldg.

14,429.08㎡

6

86.4%

499,472

7.4%

OfficeGotanda First Bldg.

4,240.98㎡

3

100.0%

146,897

2.2%

OfficeFukuoka Bldg.

1,250.06㎡

1

100.0%

64,6671.0%

OfficeKenwa Bldg.

4,181.66㎡

9100.0%

35,096

0.5%

OfficeOval Court Ohsaki MarkWest

4,088.44㎡

2

100.0%

29,2620.4%

Jinnan 1-chome Bldg.

8,076.85㎡

1

100.0%

345,576

5.1%

Subtotal

55, 577. 90㎡

55

94. 7%

1, 921, 347

28. 3%

OfficeArca East

7,050.10㎡

5100.0%

299,273

4.4%

OfficeJPR Chiba Bldg.

5,558.06㎡

27

88.8%

143,724

2.1%

OfficeAsahi-Life Yokohama Nihon
Odori Bldg.

6,066.54㎡

10

90.1%

139,962

2.1%

OfficeJPR Ikebukuro Bldg.

4,597.35㎡

6

76.8%

103,338

1.5%

OfficeShinyokohama 2nd Center
Bldg.

2,640.80㎡

10

86.1%

66,5181.0%

OfficeKawaguchi Center Bldg.

15,478.43㎡

38

100.0%

380,170

5.6%

OfficeSEF Bldg.

6,512.45㎡

9

92.0%

127,656

1.9%

RetailTanashi ASTA

31,121.71㎡

1100.0%

672,182

9.9%

Tsurumi fuga 1
Subtotal

9,578.60㎡

1

100.0%

153,278

2.3%

88, 604. 04㎡

107

96. 4%

2, 086, 101

30. 7%

OfficeNiigata Ekinan Center Bldg.

5,206.82㎡

15

89.7%

126,881

1.9%

OfficeMeiji Yasuda-Life Osaka
Umeda Bldg.

9,600.08㎡

21

94.4%

365,458

5.4%

OfficeTokyo Tatemono Honmachi
Bldg.

7,210.25㎡

10

98.6%

249,199

3.7%

OfficeAsahi-Life Takamatsu 2nd
Bldg.

2,518.30㎡

19

63.7%

51,1090.8%

OfficeJPR Takamatsu Bldg.

5,032.33㎡

22

80.1%

83,1401.2%

OfficeJPR Hakata Bldg.

6,581.10㎡

27

85.6%

152,639

2.2%

OfficeAsahi-Life Fukuoka 3rd/4th
Bldg.

8,447.48㎡

14

79.0%

182,669

2.7%

OfficeJPR Naha Bldg.

3,947.38㎡

14

82.4%

106,831

1.6%

OfficeNorth 33 Bldg.

6,642.98㎡

24

89.3%

141,368

2.1%

OfficePark East Sapporo

7,647.76㎡

22

72.5%

115,658

1.7%

OfficeSompo Japan Sendai Bldg.

7,056.39㎡

9

96.9%

199,529

2.9%

OfficeSompo Japan Wakayama
Bldg.

4,892.17㎡

14

95.0%

123,019

1.8%

OfficeTenjin 121 Bldg.

3,292.02㎡

12

77.9%

96,312

1.4%

OfficeSK Hiroshima Bldg.

2,732.29㎡

16

86.5%

58,0890.9%

OfficeNagoya Kowa Bldg.

5,461.90㎡

19

95.3%

208,711

3.1%

OfficeDoujima F Bldg.

3,941.40㎡

10

92.2%

109,748

1.6%

OfficeSemba Fukuoka Bldg.

3,349.57㎡

6

100.0%

10,421

0.2%

RetailKuraray Nissay Bldg.

18,586.97㎡

1

100.0%

402,411

5.9%

112, 147. 19㎡

275

89. 8%

2, 783, 192

41. 0%

256, 329. 13㎡

437

93. 2%

6, 790, 657

100. 0%Subtotal
Total

86.4%
81.9%

Crest Yasuda Bldg.

RetailOther
Cities3
7

OfficeRetailGreaterTokyo

Shin-Kojimachi Bldg.

2,788.98㎡
2,105.44㎡

19

CONSOLIDATED