Twenty-Fourth Fiscal Period Semi-Annual Report
July 1, 2013 – December 31, 2013

24 th

Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation (JPR) is a J-REIT having one of the largest asset
holdings in Japan with a combined portfolio that is focused on office properties in Tokyo* andcomplemented by urban retail properties.
Since its listing in 2002, JPR has steadily expanded its asset size while maintaining stable cash
distributions. Going forward, JPR will endeavor to further improve the quality of its portfolio
and manage its assets so that steady growth and enhancement of unitholder value is secured as it
moves ahead.
*"Office properties in Tokyo" represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku,
Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa and Saitama
Prefectures) (the same applies throughout this report).

Features of JPR

1. Proven track record in achieving steady growth andstable management since listing

2. High-quality portfolio of assets centering on office properties
in Tokyo

3. Stable financial operations
4.

 trong support from five sponsor companies including
S
Tokyo Tatemono Co., Ltd.

Science Plaza – Yonbancho Plaza

Contents
Cash Distribution per Unit
Determined cash distribution (for the 24th fiscal period)¥6,006(Distribution starting on March 10, 2014)

Assets Held¥404.7 billion(End of 24th fiscal period)

Properties Owned

62 properties(End of 24th fiscal period)

Occupancy Rate at End of Period

96.5%(End of 24th fiscal period)

I. Account Highlights
1. Operating Performance Topics
2. Message from Asset Manager

55
6

II. Overview of JPR
1. Portfolio Growth
2. Investment Strategy
3. Operational Strategy
4. Financial Strategy
5. Initiatives on Governance
6. Initiatives on Environmental Friendliness7. Overview of Portfolio Properties
8. Structure and History of JPR
9. Overview of Asset Manager

10
10
12
14
15
16
17
18
32
33

III. Asset Management Report
1. Overview of Asset Management
2. Overview of the Investment Corporation
3. Status of JPR’s Assets Under Management
4. Capital Expenditures of Owned Real Estate
5. Expenses and Liabilities
6. Acquisitions and Sales during the 24th Fiscal Period
7. Overview of Accounting
8. Overview of Self-Managed Investment
		 Trust Beneficiary Cerificates
9. Other

34
34
40
42
46
48
51
53
54
55

IV. Financial Statements(1) Balance Sheets(2) Statements of Income and Retained Earnings(3) Statements of Changes in Unitholders’ Equity(4) Statements of Cash Distributions(5) Statements of Cash Flows(6) Notes to Financial Statements(7) Detailed Statements(8) Report of Independent Auditors(9) Other Notes (Information Only)

56
58
59
60
61
62
71
75
76

V. Investor Information

77

3

Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko
Executive Officer

Sosuke Yasuda
Supervising Officer

Masato Denawa
Supervising Officer(from left to right) Masato Denawa, Hirohito Kaneko and Sosuke Yasuda

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 24th fiscal period (July 1, 2013 – December 31, 2013) at the end of December
2013, we renew our heartfelt appreciation for your advocacy and encouragement.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio overthe medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

4I. Account Highlights

Japan Prime Realty Investment Corporation

1. Operating Performance Topics(All amounts in millions of yen unless otherwise stated)

20th Fiscal Period 21st Fiscal Period 22nd Fiscal Period 23rd Fiscal Period 24th Fiscal Period
ended
ended
ended
ended
ended
December 2011
June 2012
December 2012
June 2013
December 2013
Operating revenues

11,772

12,345

12,963

13,27813,591

Ordinary income

4,201

4,597

5,026

4,975

4,899

Net income

4,200

4,596

5,025

4,974

4,954

Total cash distributions

4,201

4,597

5,026

4,975

4,954

Total assets

360,699

396,017

401,984

409,715

413,974

Total unitholders' equity

175,640

176,035

197,168

197,116

197,095

48.7

44.5

49.0

48.1

47.6

Unitholders' equity per unit (yen)245,651

246,204

238,992

238,929

238,903

Cash distribution per unit (yen)

5,876

6,430

6,093

6,031

6,006

Equity ratio (%)

Operating Revenues andNet Income

Total Assets andTotal Unitholders' Equity

15,000500,000

12,000400,000

Cash Distribution per Unit

8,000

6,000

300,000

9,000

4,000
6,000

200,000

3,000

100,000

2,000

0

20th
FiscalPeriod21st
FiscalPeriod22nd
FiscalPeriod23rd
FiscalPeriod24th
FiscalPeriod0

20th
FiscalPeriod21st
FiscalPeriod22nd
FiscalPeriod23rd
FiscalPeriod24th
FiscalPeriodOperating Revenues (million yen)

Total Assets (million yen)

Net Income (million yen)

Total Unitholders' Equity (million yen)0

20th
FiscalPeriod21st
FiscalPeriod22nd
FiscalPeriod23rd
FiscalPeriod24th
FiscalPeriodCash Distribution (yen)5

I. Account Highlights

2. Message from Asset Manager

Satoshi Okubo
President and Chief Executive Officer (CEO)Tokyo Realty Investment Management, Inc.
Career Highlights
2010:	Took office as President and CEO of Tokyo Realty
Investment Management, Inc.
2005:	Appointed Director and Head of Kansai Branch
Office1998:	Appointed General Manager of Residential
Management Department
1977: Joined Tokyo Tatemono Co., Ltd.

Acquisition of two blue-chip office properties and high occupancy of the portfolio
were successfully achieved, helping to reinforce JPR’s foundation for future growth.
We will aim to take a new leap forward, with our eyes fixed on the changes in theenvironment surrounding JPR.

I would like to extend my heartfelt gratitude to you, our unitholders, for the support you havegiven to Japan Prime Realty Investment Corporation (JPR).
In the 24th fiscal period that ended December 2013, JPR acquired two blue-chip office properties
that are located in central Tokyo and expected to achieve revenue growth in the future, resulting
in the asset size exceeding ¥400 billion. Moreover, our endeavors for increased earnings, cost
reductions and various other measures enabled distribution per unit to surpass the initiallyassumed ¥5,800 (as announced in August 2013), achieving the ¥6,000 level for the fourthconsecutive fiscal period.
On behalf of Tokyo Realty Investment Management, Inc. (TRIM), the Asset Manager of JPR,
I would like to give an overview of these management results for the 24th fiscal period and thefuture outlook of JPR.

6

Japan Prime Realty Investment Corporation

Q1: Can you brief us on the operating results for the 24th fiscal period ended December 2013?
A1: Distribution per unit has achieved the ¥6,000 level for four consecutive fiscal periods.
Distribution per unit for the 24th fiscal period came to ¥6,006, up by approximately 3.6% from the initially announced¥5,800, successfully achieving the ¥6,000 level for four consecutive periods from the 21st fiscal period ended June 2012.
Revenues increased period-on-period, thanks to the new acquisitions of Science Plaza-Yonbancho Plaza andShibadaimon Center Building in December 2013, and other factors, in addition to the revenues from full-period
operations of the properties acquired in the previous fiscal period.
Furthermore, we expect a distribution per unit of ¥6,050 for the 25th fiscal period ending June 2014.
Changes in Operating Revenues(Millions of yen)
16,000(forecast)
14,00012,00011,772

12,345

13,278

12,963

13,591

13,63010,0000Distribution
per unit

20th Period
ended Dec. 2011

21st Period
ended Jun. 2012

22nd Period
ended Dec. 2012

23rd Period
ended Jun. 2013

24th Period
ended Dec. 2013

25th Period
ended Jun. 2014

5,876 yen

6,430 yen

6,093 yen

6,031 yen

6,006 yen

6,050 yen(forecast)

Q2: What trends do you see in the office property leasing market in Tokyo?
the supply and demand balance improving, the market is expected to show
A2: Witha full-on recovery.
In the office property leasing market in Tokyo,
demand is progressively expanding, including
increased office space within the same buildings ascompanies expand their business operations. Overthe past two years, the vacancy rate dropped byapproximately 2 percentage points from 9.43% at
its peak (June 2012) to 7.34% as of December 2013.
Relocations to office properties in better locations
have also been observed in the face of improved
business confidence. Although recovery is yet to be
seen in the entire market, rents have already started torise for high-grade office properties located in central
Tokyo, allowing expectations for the full-on recoveryof the entire market going forward.

Changes in Occupancy Rate and Average Rent
(%)

(yen)
Occupancy rate (left axis)
Average rent (yen/tsubo, right axis)

10.0

18,0009.0

17,0008.0

16,0007.0

15,0006.0

14,0005.0

13,000

0

0
Jun.
2012

Sep.
2012

Dec.
2012

Mar.
2013

Jun.
2013

Sep.
2013

Dec.
2013

(Note) Prepared by TRIM based on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co., Ltd.

7

I. Account Highlights

were your aims behind the property acquisitions conducted in the 24th fiscal
Q3: What
period?
acquisitions were conducted utilizing sponsor support in anticipation of a
A3: Property
recovery in the market.
The current environment surrounding property acquisitions sees the supply and demand situation becoming
increasingly tightened, especially for blue-chip office properties in Tokyo, due to a decrease in expected cap rates
as well as expectations for higher rent levels. Under such conditions, JPR securely acquired two blue-chip officeproperties in central Tokyo without being involved in excessive competition. The properties were acquired froman entity that entrusts management operations of the properties to a group company of Yasuda Real Estate, asponsor. As such, the acquisition is a result of vigorously selected investment through effective utilization of sponsor
support.

Science Plaza -Yonbancho PlazaThe Bancho area where the property is located is an area close to The Imperial
Palace with abundant greenery, and has a strong appeal for foreign firms
seeking a composed work environment as well as incorporated administrative
agencies and foundations.
The property was acquired with a yield of 5.2%, which surpasses JPR’s
portfolio average of 4.4%, amid an ongoing decrease in the yield uponacquisition for blue-chip office properties in central Tokyo. With a recovery of
the office market ahead, the property promises stable revenues.

Shibadaimon Center Building
The area where the property is located features good access to wide-areatraffic networks like Haneda Airport and Shinagawa Station on the JRlines. Because of this, the area has traditionally attracted large numbers of
manufacturing companies as well as operational bases of regional companies,
enjoying solid demand from tenants.
As the rent levels in the area are relatively low, new demand is growing,decreasing the vacancy rate significantly. JPR has acquired the property inanticipation of strong revenues as a result of rents bottoming out in the days
ahead.

Q4: What reasons are there behind the high occupancy rate of JPR’s portfolio?
A4: Steady efforts to improve tenant satisfaction have generated results.
JPR continued to maintain a high occupancy level, with the period-average occupancy rate for the 24th fiscal period
at 96.9%, up by 1.3 percentage points period-on-period.
One of the factors that made this possible is the continuous implementation of extensive measures and steady efforts
to improve tenant satisfaction. JPR provides etiquette training to its administration staff and other measures inan effort to maintain and improve the level of services. In addition, questionnaire surveys to housed tenants are
conducted to promptly respond to their requests for improvement. These careful and diligent accommodations help
increase the satisfaction of housed tenants, facilitating leasing activities for not only potential tenants but also existing
tenants and generating results such as expanded leased spaces in the same buildings.

8

Japan Prime Realty Investment Corporation

you tell us about the efforts for reducing financial costs and stabilizing financial
Q5: Canoperations?
progress was made in lowering interest rates on borrowings and lengthening
A5: Further
borrowing periods.
The fund procurement environment has continued to remain favorable under the monetary easing measures by the Bankof Japan. In this environment, we made efforts to further reduce financing costs, resulting in the average interest rate forthe 24th fiscal period decreasing by 0.06 percentage points from the previous fiscal period to 1.35%.
JPR has been working to stabilize financial operations, such as lengthening borrowing periods and diversifying lenders,in order to cope with a rise in interest rates and refinancing risks in the future. The average maturity for the 24th fiscal
period stood at 3.5 years, representing an extension of 0.2 years. Efforts were also made to diversify lenders, which
totaled 30 banks for the period.
Changes in Average Interest Rate and Average Maturity(years)(%)
1.8

Average interest rate (left axis)

Average maturity (right axis)

6.0

1.69

1.6

1.48

5.0
1.46

1.41

1.4

1.35

3.0

1.2

1.0

4.0

3.0 years

2.9 years

End of20th Period(Dec. 2011)

End of21st Period(Jun. 2012)

3.3 years

3.3 years

3.5 years

End of22nd Period(Dec. 2012)

End of23rd Period(Jun. 2013)

End of24th Period(Dec. 2013)

2.0

0

0

Q6: How do you plan to manage JPR going forward?
A6: We aim to make a new leap forward, with our eyes on the environment surrounding JPR.
The environment has evolved to allow us to take advantage of the effects of the recovering market, including an
increase in real estate transaction prices, a decrease in the vacancy rate and a rise in rents starting from blue-chip officeproperties in central Tokyo, on top of the expectations for economic recovery through the “Abenomics” initiatives.
Presumably, the environment surrounding J-REITs now poses a good opportunity to advance to a new stage of
growth, and JPR believes the opportunity will give it a chance to make a large leap forward. We will make secure
preparations to see this happen, and endeavor to maximize unitholder value.

9II. Overview of JPR

1. Portfolio Growth
Occupancy Rate at End of Period (%)
100

96.3

94.1

95

93.5

93.4

93.2

92.7

95.4

95.1

97.2

98.6

98.0

99.0

90
85

Asset Size, etc. and Results of Distributions per Unit (billions of yen)
400
Office properties in Tokyo

Office properties in Other Cities

Retail properties

350

300

245.3

250

197.6

200

202.6

222.4

209.2

108.2

179.6

100.1

163.6
150
125.7
100

50

0

92.1

94.5

40.1

41.5
39.7

40.7
12.5
14.9
13.2

38.8

39.7

13.2

13.2

Nov. 16, 2001 End of Jun.
2002
Start of
1st Period
management

Number ofproperties
Total numberof tenants
Leasable floor
space (m2)Distribution
per unit (yen)

52.7

139.6

99.2
77.4

100.1

100.1

91.2
43.1

57.5

47.9

43.9

47.9

48.3

45.2

45.2

57.2

63.8

45.2

77.0

93.9

33.2

38.2

38.2

40.4

50.0

End of Dec.
2002
2nd Period

End of Jun.
2003
3rd Period

End of Dec.
2003
4th Period

End of Jun.
2004
5th Period

End of Dec.
2004
6th Period

End of Jun.
2005
7th Period

End of Dec.
2005
8th Period

End of Jun.
2006
9th Period

End of Dec.
2006
10th Period

End of Jun.
2007
11th Period

13

25

27

30

32

38

42

42

42

44

46

48

133

281

311

324

357

437

496

459

441

462

479

491

94,935

162,739

168,987

201,808

218,734

256,329

273,330

281,408308,205

315,156

337,382

361,574

–

2,545

6,912

6,873

5,738

6,081

6,671

6,370

6,411

6,509

6,873

6,996

Property Diversification
Retail in Tokyo
15.7%

Retail 23.5%

Retail in Other Cities
7.8%
Office in Other Cities
9.3%

Target investment ratio by area
Tokyo:
80 - 90%
Other Cities: 20 - 10%

Other Cities Tokyo
17.1% 82.9%

Target investment ratio by asset class
Office in Tokyo
67.2%

Office 76.5%

10

Portfolio Management Standards

Office: 70 - 90%
Retail: 30 - 10%(Note) 	The figures in the graph to the left show the investment ratios, which represent the ratiosof the total acquisition price of properties in respective categories to the total acquisition
price of the entire portfolio, rounded to the first decimal place.

Japan Prime Realty Investment Corporation

98.4

97.5

96.4

96.8

96.4

95.5

93.5

94.7

95.6

94.1

94.9

96.9

96.5

404.7

391.9

398.6

259.2

259.2

265.8

271.9

380.9
341.5

341.5

344.9

331.2
299.4
275.1

310.6

280.6

251.9
184.1
114.7

135.7

141.6

43.1

43.1

39.4

93.9

96.1

99.5

172.9

209.5

219.8

219.8

223.2

31.1

31.1

26.5

26.5

26.5

26.5

26.5

37.5

37.5

37.5

95.3

95.3

95.2

95.2

95.2

95.2

95.2

95.2

95.2

95.2

End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec. End of Jun. End of Dec.
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period 22nd Period 23rd Period 24th Period

49

50

52

51

53

55

56

56

57

58

59

60

62

517

537

499

476

476

460

479

493

501

502

534

564

610

373,609383,491

383,215

393,532

400,751

410,326

420,544421,371423,311434,340

450,943

460,452

467,207

6,671

7,122

7,092

3,731

6,933

6,770

5,680

5,611

5,876

6,430

6,093

6,031

6,006

(Note 1) The asset size represents the aggregate acquisition price of the respective properties in JPR’s portfolio as of the relevant date, rounded off to the nearest 100 million yen.
(Note 2)	The number of tenants at end of period is counted as follows: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in
multiple buildings, the tenant is counted in plural.
(Note 3) 	For Shinjuku Square Tower, each compartmentalized owner leases respective exclusive space to Tokyo Tatemono Co., Ltd. in a lump sum, and Tokyo Tatemono subleases the space tosublessees. Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted space of offices, shops and warehouses that are leased by Tokyo Tatemono andcan be sublet, by JPR’s rent distribution rate (39.70457% through June 30, 2008 and 40.31465% since the 14th fiscal period in accordance with the additional acquisition in September 2008),
while the leased floor space for calculating the occupancy rate is calculated by multiplying the floor space sublet to sublessees by the rent distribution rate. Both figures are rounded to thesecond decimal place.
In addition, the number of the sublessees is deemed to be the number of tenants for the building.
(Note 4) 	The tenants of Shinjuku Center Bldg., Rise Arena Bldg. and Kawasaki Dice Bldg. 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. Accordingly, the total leasable floor space, total leased floor space and the occupancy rate of the building indicate those forthe sublessees of the tenants, and the number of the sublessees is deemed as the number of its tenants.
(Note 5) 	When the contracted floor space and the floor space for calculating rents differ, the latter was treated as the leased floor space through the 10th fiscal period. Since the 11th fiscal period,
however, the contracted floor space has been used as the leased floor space.
(Note 6) The occupancy rate at end of period has been rounded to the first decimal place.
(Note 7) The total leasable floor space has been rounded off to the nearest integer.

11II. Overview of JPR

2. Investment Strategy
JPR is resolved to continuously work on investment focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investment in retailproperties as well as office properties in regional cities that are expected to generate relatively high yields.

Focusedinvestment in
office properties
in Tokyo

Vigorously
selective
investment inretail properties
as well as officeproperties inregional cities

Improve the quality of the portfolio by making investment focused on office properties inTokyo that are expected to contribute to long-term growth
Compared with other regional cities, Tokyo allows expectations for more stable occupancy andhigher rent levels, and is believed to offer larger rooms for an upward turn of rents when the leasing
market starts to recover. Looking ahead, JPR will continue to make investment focused on officeproperties in Tokyo, with an aim to further improve the quality of its portfolio and enhance its
growth potential in the recovery cycle of the market.

For retail properties as well as office properties in regional cities, which allow JPR to expect
higher yields, work to invest in strictly selected blue-chip properties that can keep stablerevenues at a certain level
Retail properties as well as office properties in regional cities tend to have relatively higher yields
than office properties in Tokyo, although there are some properties that are somewhat less stable interms of earnings subject to the market situation. While securing growth potential by making focusedinvestment in office properties in Tokyo, JPR will make vigorously selective investment in urban retailproperties with long-term, fixed-rent contracts and in large office properties in regional cities having
a high competitive advantage in the areas, in order to complement the stability of earnings from theentire portfolio.

Changes in Investment Ratios by Asset Class and Area
Over the last five years, JPR made investments in 14 office properties in Tokyo totaling 130.3 billion yen (acquisition
price), enhancing the quality of its portfolio.
End of 1st Fiscal Period (June 30, 2002)

Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

End of 24th Fiscal Period (December 31, 2013)
Retail in
Other Cities
7.8%
Office in
Other Cities
9.3%

Office in
Tokyo
43.5%

Retailin Tokyo
15.7%

Increase in investment ratio
of office properties in Tokyothrough focused investment:

Officein Tokyo

67.2%+23.7%(Note) 	The figures in the graphs show the investment ratios, which represent the ratios of the total acquisition price of properties in respective categories to the total acquisition price of the entire
portfolio, rounded to the first decimal place.

Portfolio Management Standards of JPR

12Target investment ratio by area

Target investment ratio by asset classTokyo:
80 - 90%
Other Cities: 20 - 10%

Office: 70 - 90%
Retail: 30 - 10%

Japan Prime Realty Investment Corporation

In the for-sale real estate market, transactions of blue-chip properties have been rather limited. Given
the situation, JPR will work to invest in blue-chip properties by fully implementing various acquisition
strategies based on its high sourcing abilities while utilizing sponsor support.
Utilization of sponsor
support from the Fuyo
Group companies
including Tokyo
Tatemono

Supply of blue-chip properties among office properties in Tokyo is still inadequate in thefor-sale real estate market, and their acquisition opportunities are rather limited.

Investment strategies
based on diversified
property acquisition
methods and highsourcing abilities

To acquire properties from third parties other than the sponsors, JPR exercises its highsourcing abilities and takes advantage of various information channels to make access to
wide-ranging property information.

JPR will take advantage of support from Tokyo Tatemono Co., Ltd. and other sponsors tosecure opportunities to invest in blue-chip properties at reasonable price levels without being
exposed to excessive competition in the market.

For properties with co-ownership or compartmentalized ownership, JPR implements
various methods to acquire properties, including acquisition of additional equity by utilizing
preferential negotiation rights.

Cases in which JPR Acquired Properties by Utilizing Sponsor Support
JPR has displayed its strength of having sponsors comprising real estate developers, a general contractor and financial
institutions in acquiring blue-chip properties.
<Sponsors>

The Otemachi Tower(Land with Leasehold Interest)

Yakuin Business GardenTokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan Insurance

Meiji Yasuda Life Insurance

The Otemachi Tower (Land with
Leasehold Interest) was acquired froman SPC in which Tokyo Tatemono andTaisei Corporation had equity interests.

Yakuin Business Garden was acquired
from an SPC in which Tokyo Tatemono
has equity interests.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its
sponsors, etc.(Note) and that of properties acquired fromthird parties (total of properties acquired based on theinformation provided by the sponsors and those acquired
other than from the sponsors, etc.) are almost equal,
standing at 50.4% for the former and 49.6% for the latter(on an acquisition price basis).
JPR will work to increase property acquisition
opportunities and conduct vigorously selective investment
in blue-chip properties by building sourcing abilities on
its own instead of depending solely on sponsor support.
(Note)	Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment.

Transactions with third parties

49.6%

Properties acquired
other than fromsponsors, etc.

30.1%
19.5%

Properties
acquired fromsponsors, etc.

50.4%

Properties acquired
based on information
provided by sponsors

13II. Overview of JPR

3. Operational Strategy
JPR endeavors to implement its leasing strategies focused on maintaining and increasing the occupancyrate, with an aim to keep revenues from the portfolio stable in a continuous manner.

Organizational
reinforcement ofleasing activities

Tokyo Realty Investment Management, Inc. (TRIM) has established a group that supervises leasing,which implements leasing strategies that are based on property characteristics. Endeavors arebeing exerted to enhance the leasing framework by not only reinforcing coordination with property
management companies but also receiving support on leasing and obtaining market information frommajor brokerage firms, so that JPR can provide lease terms and conditions that take into account themarket conditions, accelerate decision-making and take other measures to strengthen leasing.

Maintenanceand improvementof tenantsatisfaction

TRIM periodically conducts questionnaire surveys to tenants, and works to improve tenantsatisfaction by grasping comments, requests and other feedback from tenants and promptly
responding. By doing so, TRIM aims to prevent move-outs of existing tenants and encourage themto expand office spaces in the same buildings, so as to secure stable earnings of JPR over a medium tolong term.

Strategic valueenhancement
works

TRIM has established a group dedicated to construction management, reinforcing its responses tobusiness continuity plans, promotion of energy saving and other initiatives that are strongly requested
by society. In addition, while working to enhance NOI and tenant satisfaction, TRIM strategicallyconducts value enhancement works that should strengthen competitive advantages of properties aswell as help attract tenants.

Changes in Occupancy Rate
Endeavors to reinforce leasing activities and enhancetenant satisfaction successfully generated results, withthe period-average occupancy continuing to rise sincethe 23rd fiscal period and standing at a high level of
96.9% in the 24th fiscal period.

Examples of Renewal Works

（%）
98.0

Period-Average Occupancy Rate

96.0
94.0

96.9%
95.6%

93.6%

94.0%

18th
Period19th
Period

95.0%

94.8%

94.4%

20th
Period21stPeriod22nd
Period92.0
23rd
Period24th
PeriodJPR has been strategically conducting value enhancement works that should lead to invitation of new tenants andimprovement in tenant satisfaction.
Among office properties, renewal work was implemented at Tokyo Tatemono Kyobashi Building to refurbish its
exterior appearance and the entrance hall as well as secure the ceiling height of rental spaces, among other things, inorder to invite new tenants in accordance with a partial move-out of a large tenant.
For retail properties, JPR conducted renewal work at Kawasaki Dice Building, centering on areas around theentrance and the public space, timed to the property’s tenth anniversary since opening.
Renewal work at Tokyo Tatemono Kyobashi Building

Before14

After

Renewal work at Kawasaki Dice BuildingJapan Prime Realty Investment Corporation

4. Financial Strategy
JPR is engaged in conducting financial operations in a stable and sound manner, such as working tolengthen the average maturity of debts while maintaining the ratio of long-term, fixed interest rate debts aswell as conservatively controlling the ratio of interest-bearing debts (LTV).
LTV

JPR is engaged in conservative financial operations, setting the ceiling of LTV at 55% as a ruleand working to control the ratio at 50% or lower in practice.

48.0%
Ratio of long-term, fixedinterest rate debts

JPR keeps a high ratio of long-term, fixed interest rate debts under the basic policy of procuring
funds through long-term, fixed interest rate debts, with an eye on reducing risks of rising interest
rates.

97.2%
Average interest rate

JPR endeavors to reduce financing costs, taking advantage of the favorable fund procurement
environment to the utmost.

1.35%
Average maturity

JPR works to lengthen the average maturity of debts under the basic policy of procuring fundswith longer borrowing periods, while remaining attentive to the diversification of repayment andredemption dates.

3.5 years

Status of Corporate Credit Ratings Assigned to JPR (End of the 24th Fiscal Period)
JPR maintains high, AA-rank credit ratings, with recognition given to its stable and sound financial operations.
R&I

S&P

Moody's(Note)(Rating and Investment Information, Inc.)(Standard & Poor's Ratings Japan K.K.)(Moody's Japan K.K.)

A

AA-

A-1

(Long-term)

A3(Short-term)(Note) JPR had its ratings assigned by Moody’s Japan K.K. withdrawn on January 21, 2014.

Changes in Average Interest Rate and Average Maturity(%)
1.8

JPR endeavors to reduce
financing costs and keep
financial stability by lowering
the average interest rateand lengthening the average
maturity.

Average interest rate (left axis)

1.69

1.6

1.48

1.46

5.0

1.41

1.4

1.35

1.2
1.0
0

(years)
6.0

Average maturity (right axis)

4.0
3.0

3.0
years

2.9
years

3.3
years

3.3
years

3.5
years

End of20th Period(Dec. 2011)

End of21st Period(Jun. 2012)

End of22nd Period(Dec. 2012)

End of23rd Period(Jun. 2013)

End of24th Period(Dec. 2013)

2.0
0Diversification of Repayment Dates of Interest-Bearing Debts
JPR works to mitigate refinance risks by establishing a commitment line totaling 28 billion yen while having
repayment dates of debts more diversified.
(100 million yen)

Short-term loans payable

250

Long-term loans payable

Investment corporation bonds

200
150

50

100
50
0

120

50

130
110
1
20

135
61

131

70
41

50

195
120

83

20
81

20
91

80

60

100
8

20

25th
26th
27th
28th
29th
30th
31st
32nd
33rd
34th
35th
36th
37th
38th
39th
40th
periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingEndingJun. 2014 Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016 Dec. 2016 Jun. 2017 Dec. 2017 Jun. 2018 Dec. 2018 Jun. 2019 Dec. 2019 Jun. 2020 Dec. 2020 Jun. 2021 Dec. 2021

20
43rd
periodEndingJun. 2023

45
50th
periodEndingDec. 202615

II. Overview of JPR

5. Initiatives on GovernanceIn the belief that it is essential to secure sound and efficient operations of JPR in order to realize its continuous growth,
consistent efforts have been made to reinforce and sustain corporate governance of JPR and TRIM, the Asset Manager.

Highly Independent Board Composition❚❚   At JPR, the executive officer as well as the supervising
officers has no concurrent assignment as officer of TRIM so
as to firmly secure the independence of JPR, the investment
corporation.

Executive Officer:❚❚   The JPR officers comprise attorneys and a certified public
accountant with various experiences and high expertise, whohave a thorough knowledge of the REIT industry as well.

Supervising Officer: Masato Denawa (attorney)

Members of the Board of JPR

Hirohito Kaneko (attorney)

Supervising Officer: Sosuke Yasuda(certified public accountant)Diversified Shareholder Composition and Reinforced Independence❚❚   With the sponsors comprising five companies, thediversified shareholder composition also contributes
to securing the independence of the Asset Manager.
❚❚   TRIM President and CEO has assumed office after
having his employment transferred to TRIM, insteadof being seconded from the sponsor company hebelonged to.
❚❚   The Compliance Office general manager in charge ofinternal control is a career employee, not seconded
from the sponsor company he belonged to.

Shareholder Composition of TRIM
real estateTokyo Tatemono

real estate

Shareholding ratio:

40%

Taisei Corporation

Yasuda Real Estate

Shareholding ratio:

20%

20%

Shareholding ratio:

financefinance

Meiji Yasuda Life Insurance

Shareholding ratio:

construction

10%(Asset Manager)
Tokyo Realty Investment
Management, Inc.

Sompo Japan Insurance

10%

Shareholding ratio:

Decision Making Based on Stringent Processes❚❚   Upon making decisions on property acquisitions,asset management and other issues, TRIM conducts
stringent screening and takes other procedures fromvarious perspectives through designated committees
and other institutions.
❚❚   In particular, material transaction matters conductedwith the sponsors, etc. are screened and verified by
the Compliance Committee as to their adequacy andrationality. The Committee employs unanimous votefor approvals in principle.
❚❚   An outside attorney has been appointed as a special
member of the Compliance Committee.
Members of the Compliance Committee of TRIM
President and CEO

16

Proposal, planning

Investment Management Department

Review, screening

Compliance Subcommittee

Decision on acquisition policy

Investment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Final decision on acquisition

Corporate Planning/Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager
Special member(outside attorney)

Stringent Decision-Making Process(for property acquisitions)

Decision making on acquisition
over certain amountConclude agreement

Compliance Committee
JPR’s Board of Directors

Investment Subcommittee

TRIM’s Board of Directors

Acquisition

Japan Prime Realty Investment Corporation

6. Initiatives on Environmental Friendliness
From early on, JPR has implemented various initiatives on environmental friendliness.
JPR has proactively worked on effective reduction of energy costs, enhancement of greening inconsideration of the urban environment and other measures under the basic concept of “environmentallyfriendly buildings.” Such endeavors have also been recognized by external organizations.

Acquisition of DBJ Green Building Certification❚❚   JPR has obtained the DBJ Green Building Certification, a system by Development Bank of Japan Inc. (DBJ) tocertify real estate properties evincing high environmental and social awareness, for multiple properties it owns.
DBJ Green Building

DBJ Green Building

DBJ Green Building

DBJ Green BuildingGold

SilverGold

Silver2013

2013

Properties
with
DBJ Green Building
DBJ Green Building
exceptionally highGreen Building
DBJ Green Building
environmental&
Bronze DBJ
Certified2013
2013
social awareness

Gold

2013

SilverOlinas Tower
2013

2013

2013

Properties
DBJ
Green Building
with excellent
DBJ Green Building
environmental
BronzeCertifiDBJ
edGreen& Building
2013
2013
social awareness

DBJ Green Building

Yakuin Business
GardenGold

SilverJPR Sendagaya Bldg.

2013

2013

DBJ Green Building

DBJ Green Building

DBJ Green Building

DBJ Green Building

BronzeCertifiedBronzeCertified

2013

2013

2013

Shinagawa Canal
Building

2013

Properties
with sufficientenvironmental &social awareness

Properties withhigh environmental& social awareness
JPR Crest Takebashi
Bldg.

JPR Ueno East Bldg. BYGS Shinjuku Bldg.

DBJ Green Building Certification

JPR Nihonbashi
Horidome Bldg.

Kanematsu Bldg.

DBJ awards five levels of certification (Platinum, Gold, Silver, Bronze and Certified) to officebuildings in accordance with the degree of environmental and social awareness they demonstrate.

Continuous Participation in GRESB Survey❚❚   JPR has participated in the GRESB Survey, which evaluates and analyzes
environmental considerations and sustainability, for three consecutive
years since 2011 and has been recognized each time for its approach toenvironmentally-friendly initiatives.
❚❚   JPR believes that its endeavors have been recognized as a result of
having diligently worked to reduce energy consumption by establishinga consistent system among all business partners involved in building
operations, from the Asset Manager to property managers and building
maintenance companies, under a clear environmental policy as well as asking
for cooperation with tenants.

GRESB, which stands for Global Real
Estate Sustainability Benchmark, isa benchmark system for analyzing
and evaluating sustainability interms of environmental friendlinessand social nature. It is based on
surveys conducted by a private
sector group established primarily
by major pension funds in Europe.

Taking Advantage of Environmental Friendliness Know-How of Sponsors❚❚   JPR and TRIM have consigned operations related to environmental laws and regulations to Tokyo Tatemono Co.,
Ltd., one of the sponsors, and established a system early on to receive know-how and advices from Tokyo Tatemono.
❚❚   TRIM has reinforced its initiatives on environmental friendliness by allocating dedicated staff to the section in chargeof construction planning for the portfolio properties, bolstered by the technological know-how of Taisei Corporation,
one of the sponsors.
17II. Overview of JPR

7. Overview of Portfolio Properties
List of Properties (62 Properties for the Entire Portfolio)
Central Tokyo (30 Properties)
Property
Number

Property Name

Location

Acquisition Date

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

4.0

7,994.02

2.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

7.4

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

5.8

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.60

8.6

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

1.0

3,265.34

6.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.8 14,469.72

4.0

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,243.58

4.4

Oct. 15, 2003

1,800

0.4

1,250.06

A-8

Fukuoka Bldg.

Chuo-ku, Tokyo

Apr. 15, 2005

1,120

0.3

687.342,920

0.7

1,937.40

Total

7.1

A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.3

4,224.96

8.0

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.9

4,088.44

1.6

Jul. 2, 2004

10,0002.5 10,982.03

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

Sep. 26, 2008

180

Office0.0

168.75

Total

10,1802.5 11,150.78

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.2

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,121

3.7

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

A-17

Rokubancho Bldg.

A-18

JPR Harajuku Bldg.

A-19

2.0

15,211.49

3.7

0.2

1,253.39

5.0

21,0005.2

8,863.98

2.4

Jul. 14, 2008

3,760

0.9

3,405.73

4.3

Dec. 19, 2008

1,870

0.5

1,700.57

6.8

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.7

2,488.36

4.4

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

2.1

4,760.09

7.1

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.3

3,551.01

7.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.3

5,299.89

4.7

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.7

6,177.74

4.7

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,899.27

8.2

A-23

The Otemachi Tower (Land with
Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.9 11,034.78

–

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.7

3,325.27

4.6

A-25

Shibadaimon Center Building

Minato-ku, Tokyo

Dec. 6, 2013

3,420

0.8

4,359.59

7.0

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0003.0

8,076.85

5.0

A-2

JPR Daikanyama

Shibuya-ku, Tokyo

Oct. 5, 2004

2,160

0.5

651.2911.1

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 24, 2006

4,275

1.1

1,027.33

3.0

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,347.81

2.0

2,740

0.7

3,400

0.8

1,101.92

2.3

52.5 146,325.89—

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

Total
A-5

Yurakucho Ekimae Bldg. (Yurakucho
Itocia)Subtotal

Chiyoda-ku, Tokyo

Aug. 27, 2008

¥212,606(Note 1) The table above shows properties owned by JPR as of December 31, 2013.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.

18

PML (%)

A-1

Total

RetailAcquisitionPrice(in millions)Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.5

7,022.76

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.6

5,537.74

2.6

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

10.2

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

6.4

1,490

0.4

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

2.0 15,455.90

4.7

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.8

6,490.05

3.1

Sep. 30, 2005

888

0.2

1,699.49

3.2

2,300

0.6

2,983.91

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

3,188

0.8

4,683.40

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.4

6,023.39

2.5

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.6 12,013.05

1.2

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,3007.7 23,987.40

3.3

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.7

6,494.09

9.5

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.5

6,871.45

4.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.5 31,121.71

6.6

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

6.3

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,260

1.8 19,740.95

10.9

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.1 14,960.69

8.0

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,0803.7 12,116.35

4.0¥122,891

30.4 189,833.21—

AcquisitionPrice(in millions)

Percentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

PML (%)

Total

RetailPercentage of
Leasable
Portfolio Acquisition
Floor Space (m²)
Price (%)

B-1

Total

OfficeAcquisitionPrice(in millions)

Subtotal

5.2

Other Cities (15 Properties)
Property
NumberOfficeRetailProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,326.88

1.9

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,163.08

10.5

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,568.43

1.1
4.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.8

7,129.05

0.5

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.12

11.2

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.7

3,257.73

1.3

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,930.71

11.1

C-18

JPR Hakata-chuo Bldg.

Fukuoka, Fukuoka

Jun. 11, 2004

1,920

0.5

3,290.42

1.6

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

10.0

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

1.4

Aug. 8, 2012

10,996

2.7 16,654.33

May 15, 2003

8,000

2.0
1.2 18,586.97

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

Total

13,0003.2

C-3

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.3

C-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.8 35,444.13

4.8

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.5

2,484.39

14.8

5,303.98

11.6
12.7

Subtotal¥69,223

17.1 131,047.95

—

Total

¥404,720

100.0 467,207.05

3.5(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the second decimal place.

19II. Overview of JPR

Portfolio Map
A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-12

A-9
Chiyoda
A-24
Ward
A-17
A-4

A-4

Tokyo

A-21
Shibuya Ward

A-5

Ichigaya

A-23

Harajuku

A-3
A-1

A-18

A-2 A-1

A-13

A-8
A-19
A-5 A-22

Chuo Ward

A-25

Shibuya

A-20
A-3

Minato Ward

A-2
Tamachi

A-15
A-6
Shinagawa

Gotanda

A-7

A-16

A-10
OhsakiShinagawa Ward
Office
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-8
● A-9
● A-10● A-11● A-12● A-13● A-14

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

● A-15● A-16● A-17● A-18● A-19● A-20● A-21● A-22● A-2320

Minato Ward
Shinjuku Ward

Retail
■ A-1
■ A-2
■ A-3
■ A-4
■ A-5

JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

24th Fiscal Period Acquisitions● A-24 Science Plaza – Yonbancho Plaza● A-25 Shibadaimon Center Building

A Central Tokyo
Chiyoda Ward
Chuo Ward

Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(Land with Leasehold Interest)

Shinagawa Ward
Shibuya Ward

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

B Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures)
Office

Omiya

B-13

Musashiurawa

B-5● 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 BusinessCenter Bldg.
● B-9 Rise Arena Bldg.
● B-10 Yume-ooka Office Tower● B-11 Olinas Tower● B-12 Tokyo Tatemono
Yokohama Bldg.
● B-13 Omiya Prime East

Minamiurawa
Kawaguchi

B-6
B-3

SAITAMA

CHIBA

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9 Ueno

B-7

Shinjuku

B-11
B-1
Kinshicho

TachikawaTokyo
ShibuyaChiba

B-2

ShinagawaMusashikosugi

B-4

Musashikosugi(New Station)

KANAGAWA

KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

Retail
■ B-1
■ B-3
■ B-4
■ B-5

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping
Square■ B-6 Kawasaki Dice Bldg.

B-3

Kamiooka

C Other Cities
Office● C-1 Niigata Ekinan Center Bldg.
● C-4 Tokyo Tatemono Honmachi Bldg.
● C-7 JPR Hakata Bldg.
● C-9 JPR Naha Bldg.
● C-12 Sompo Japan Sendai Bldg.
● C-13 Sompo Japan Wakayama Bldg.
● C-14 Tenjin 121 Bldg.
● C-17 JPR Dojima Bldg.
● C-18 JPR Hakata-chuo Bldg.
● C-19 JPR Nagoya Fushimi Bldg.
● C-20 Yakuin Business Garden

OSAKA

Retail
■ C-1
■ C-3
■ C-4
■ C-5

FUKUOKAJPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

C-7
C-14
C-18
C-20
NAHA

C-9

C-4
C-17
C-1
C-3
C-5

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
WAKAYAMA

C-13

21

II. Overview of JPR

Properties Newly Acquired in the 24th Fiscal Period
Science Plaza – Yonbancho Plaza

A-24
JPR acquired a property that is highly competitive in terms of the standard
floor space size, regularly-shaped rental spaces commanding high layout
efficiency and other factors as well as superior building specifications, andis located in the Bancho area that is immensely convenient for companies
attaching importance to work environment.

1. Property Overview
Location

9-6, etc., Yonbancho, Chiyoda-ku, Tokyo

Completion

February 1995

Structure/Floors

S, SRC, RC B2/12F

Total site area

5,289.01 m2

Total floor space

24,560.36 m2

Property manager

Yasuda Real Estate Co., Ltd.

2. Transaction Summary
Seller

Cotone Capital YK

Acquisition price
Appraisal value¥2,660 million
2,720 million yen (as of November 1, 2013)

Acquisition date

(Note) 	The NOI yield of the property has been calculated by dividing the assumed income
for 12 months based on the rent level, the occupancy rate and other factors uponacquisition, by the acquisition price.

December 6, 2013

3. Assumed Income
NOI yield

5.2%

Shibadaimon Center Building

A-25
JPR acquired a property that is highly competitive in terms of the standard
floor space of a certain size, highly versatile shapes of rental spaces andother factors in addition to the exterior appearance with good design andsuperior building specifications, and is located in the Shiba-Daimon area
where solid demand from tenants is expected due to excellent traffic accessto central Tokyo and Haneda Airport.

1. Property Overview
Location

1-10-11 Shibadaimon, Minato-ku, Tokyo

Completion

July 1993

Structure/Floors

S, SRC B1/10F

Total site area

1,915.50 m2

Total floor space

11,419.93 m2

Property manager

Yasuda Real Estate Co., Ltd.

2. Transaction Summary
SellerAcquisition price
Appraisal value
Acquisition date

Cotone Capital YK¥3,420 million
3,590 million yen (as of November 1, 2013)
December 6, 2013

3. Assumed Income(Note) 	The NOI yield of the property has been calculated by dividing the assumed income
for 12 months based on the rent level, the occupancy rate and other factors uponacquisition, by the acquisition price.

22

NOI yield

5.1 %Japan Prime Realty Investment Corporation

Portfolio Properties
Central Tokyo

DBJ Green Building

DBJ Green Building

OfficeKanematsu Bldg.

Gold Retail

Silver

2013

2013

DBJ Green Building

DBJ Green Building

BronzeCertified

2013

2013

Kanematsu Bldg. Annex

A-1

A-2

Chuo Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price¥2,874 million
Site Area

679.06 m2

Total Floor Space

4,351.46 m2

Structure/Floors

SRC B1/8F
CompletedFebruary 1993
Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ningyo-cho Bldg.

A-3
Chuo Ward, Tokyo
Acquisition Price¥2,100 million
Site Area

550.06 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space

Structure/Floors¥16,276 million
1,751.13 m

S/RC/SRC B2/13F

Completed

2

SRC/RC B1/8F
CompletedFebruary 1993

December 1989

Property Manager

14,995.09 m2

Property Manager

Tokyo Tatemono Co., Ltd.

Shin-Kojimachi Bldg.

Tokyo Tatemono Co., Ltd.

MS Shibaura Bldg.

A-4

A-6

Chiyoda Ward, Tokyo
Acquisition Price

4,117.70 m2

Structure/Floors

Minato Ward, Tokyo¥2,420 million

Site Area

657.80 m2

Total Floor Space

5,152.98 m2

Structure/Floors

SRC B1/9F

Completed

October 1984

Property Manager
DBJ Green Building

DBJ Green Building

Tokyo Tatemono Co., Ltd.

Gold

2013

Silver2013

DBJ Green Building

DBJ Green Building

BronzeA-5
Certified

JPR Crest Takebashi Bldg.

2013

2013

Chiyoda Ward, Tokyo
Acquisition Price¥4,000 million
Site Area
Total Floor Space

636.90 m2
4,790.68 m2

Acquisition Price

SRC B1/9F

Site Area (Note)

September 1999

Total Floor Space

Completed
Property Manager

Yasuda Real Estate Co., Ltd.

Structure/Floors¥11,200 million

Structure/Floors

8,992.18 m2
31,020.21 m

2

SRC/RC/S B2/13F
CompletedFebruary 1988
Property Manager

Tokyo Tatemono Co., Ltd.

(Note) Includes land of the Trinity Shibaura property, which was developed together with the MS Shibaura Bldg.

23

II. Overview of JPR

Portfolio Properties
Central Tokyo

OfficeRetailGotanda First Bldg.

A-7

Fukuoka Bldg.

A-8
Chuo Ward, Tokyo

Shinagawa Ward, Tokyo
Acquisition Price

Acquisition Price¥2,920 million
Site Area¥2,920 million
Site Area

1,551.19 m2

Total Floor Space

1,302.17 m2

Total Floor Space

10,553.34 m2

Structure/Floors

11,627.74 m2

Structure/Floors

SRC/RC B2/11F

SRC B2/10F

Completed

Completed

July 1989

May 1990

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Ichigaya Bldg.

A-9

Tokyo Tatemono Co., Ltd.

Oval Court Ohsaki Mark West

A-10

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo
Acquisition Price

Acquisition Price¥3,500 million¥5,100 million
Site Area

Site Area

4,006.00 m2

1,058.04 m2
Total Floor Space

Total Floor Space

28,575.80 m2

5,888.82 m2
Structure/Floors

Structure/Floors

S/SRC B2/17F

SRC B1/9F
Completed

Completed

June 2001

March 1989
Property Manager
DBJ Green Building

Property Manager

Shinjuku Square Tower

A-11

Gold

BYGS Shinjuku Bldg.

Structure/Floors¥10,180 million
Site Area

28,409.52 m (entire redevelopment project)
Total Floor Space
78,796.00 m2 (entire redevelopment project)

BronzeA-12
Certified

24

2013

Structure/Floors¥15,121 million
Site Area

October 1994
Tokyo Tatemono Co., Ltd.

2013

DBJ Green Building

2013

Acquisition Price

Property Manager

SilverShinjuku Ward, Tokyo

S/RC/SRC B4/30F
Completed2013

DBJ Green Building

Shinjuku Ward, Tokyo

Acquisition Price

DBJ Green Building

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

3,522.46 m
Total Floor Space2

25,733.10 m2

SRC B2/14F
Completed

April 1985
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailAcross Shinkawa Bldg. Annex

Shinjuku Center Bldg.

A-13

A-14
Shinjuku Ward, Tokyo

Chuo Ward, Tokyo
Acquisition Price¥710 million
Site Area

858.48 m2

Total Floor Space

5,535.90 m2

Structure/Floors

S/SRC B2/10F
Completed

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

Minami Azabu Bldg.

A-15
Minato Ward, Tokyo
Acquisition Price¥3,760 million

Site Area

778.09 m2

Total Floor Space

4,570.63 m2

Structure/Floors

S

Completed

9F

June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

Structure/Floors¥21,000 million
Site Area

14,917.11 m
Total Floor Space2

176,607.89 m2

SRC/RC/S B5/54F
Completed

October 1979
Property Manager

Tokyo Tatemono Co., Ltd.

DBJ Green Building

DBJ Green Building

Shinagawa Canal Bldg. Gold

Acquisition Price

Silver2013

2013

Rokubancho Bldg.

A-16

A-17

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

DBJ Green Building

DBJ Green Building

Acquisition PriceBronzeCertified2013¥1,870 million

2013

Site Area

828.82 m
Total Floor Space2

5,216.21 m2

Structure/Floors

S

B1/8F

Completed

July 2008
Property Manager

Tokyo Tatemono Co., Ltd.

JPR Harajuku Bldg.

Acquisition Price¥2,800 million
Site Area

716.95 m2

Total Floor Space

SRC B3/7F
Completed

October 1991
Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Kyobashi Bldg.

A-18
Shibuya Ward, Tokyo
Acquisition Price

A-19
Chuo Ward, Tokyo

Acquisition Price¥8,400 million
Site Area

1,205.07 m
Total Floor Space

4,205.09 m2

Structure/Floors

26,466.94 m2

Structure/Floors¥5,250 million
Site Area

547.10 m2

Total Floor Space

4,419.79 m2

Structure/Floors

SRC B1/9F
Completed

SRC/S B1/10F
Completed

March 1989
Property Manager

Tokyo Tatemono Co., Ltd.

January 1981
Property Manager

Tokyo Tatemono Co., Ltd.

25

II. Overview of JPR

Portfolio Properties
Central Tokyo

DBJ Green Building

DBJ Green BuildingGold

SilverOfficeRetail2013

2013

DBJ Green Building

DBJ Green Building

JPR Nihonbashi-horidomeBronze
Bldg.

Certified

2013

2013

Chuo Ward, Tokyo
Acquisition Price¥5,100 million
Site Area
Total Floor SpaceDBJ Green Building

DBJ Green BuildingGold

SilverJPR Sendagaya Bldg.

A-20

2013

2013

A-21

Shibuya Ward, Tokyo

DBJ Green Building

DBJ Green Building

BronzeCertified

2013

2013

937.59 m2
7,190.82 m2

Structure/Floors

SRC B1/9F
Completed

June 2002
Property Manager:

Tokyo Tatemono Co., Ltd.

Ginza Sanwa Bldg.

A-22
Chuo Ward, Tokyo
Acquisition Price¥3,400 million
Site Area
Total Floor Space

1,119.27 m2
8,851.00 m2
Acquisition Price

Structure/Floors

SRC B2/9F
Site Area

Completed

October 1982

2,217.49 m
Total Floor Space

Property Manager

Mitsubishi Jisho Property Management Co., Ltd.

The Otemachi Tower

A-23(Land with Leasehold Interest)

Structure/Floors¥15,050 million
27,683.19 m2

S 8F
CompletedMay 2009
Property Manager

Tokyo Tatemono Co., Ltd.

A-1

JPR Shibuya Tower Records Bldg.

Chiyoda Ward, Tokyo

Acquisition Price

Structure/Floors¥36,000 million
Site Area

11,034.78 m2

Total Floor Space–
Acquisition Price

Completed–
Site Area

Property Manager–*	Since the property consists of land with leasehold interest only, no property managementcompany has been appointed.

26

Shibuya Ward, Tokyo*
Total Floor Space

¥12,000 million
1,010.47 m2
8,449.56 m

2Structure/Floors
Completed
Property Manager

SRC/S B3/8F
February 1992

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

Office/ Greater Tokyo Office Retail

RetailJPR Daikanyama

A-2

JPR Jingumae 432

A-3
Shibuya Ward, Tokyo

Shibuya Ward, Tokyo
Acquisition Price

Acquisition Price¥4,275 million¥2,160 million
Site Area

Site Area

198.10 m2

277.12 m2
Total Floor Space

Total Floor Space

668.09 m2
Structure/Floors

1,066.81 m2

Structure/Floors

S/SRC B1/7F

RC B2/2F
Completed

CompletedFebruary 2006

July 2002
Property Manager

Property Manager

Jones Lang LaSalle K.K.

Jones Lang LaSalle K.K.

Shinjuku Sanchome East Bldg.

A-4

Yurakucho Ekimae Bldg.

A-5(Yurakucho Itocia)

Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price¥2,740 million
Site Area¥3,400 million
Site Area

2,578.69 m2

Total Floor Space

6,808.12 m2
Total Floor Space

24,617.65 m2

71,957.65 m2

Structure/Floors

Structure/Floors

S/SRC/RC B3/14F

S/SRC B4/20F

Completed

Completed

January 2007

October 2007

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Arca East

B-1

Tokyo Tatemono Co., Ltd.

JPR Chiba Bldg.

B-2

Sumida Ward, Tokyo

Chiba City, Chiba
Acquisition Price

Acquisition Price¥5,880 million
Site Area

3,755.01 m2

Total Floor Space

34,281.86 m2¥2,350 million
Site Area

1,382.35 m2

Total Floor Space

9,072.57 m2

Structure/Floors

Structure/Floors

S/SRC B3/19F

S/SRC B1/13F
Completed

Completed

March 1997

January 1991
Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

JPR Yokohama Nihon Odori Bldg.

B-3

Tokyo Tatemono Co., Ltd.

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa
Acquisition Price

B-5
Yokohama City, Kanagawa

Acquisition Price¥2,927 million
Site Area

1,100.59 m2

Total Floor Space

9,146.52 m2

Structure/Floors¥1,490 million
Site Area
Total Floor Space

841.71 m2
7,781.93 m2

Structure/Floors

SRC B1/11F
Completed

S/SRC B2/12F
Completed

October 1989
Property Manager

Tokyo Tatemono Co., Ltd.

August 1991
Property Manager

Nomura Building Management Co., Ltd.

27

II. Overview of JPR

Portfolio Properties
Greater Tokyo

OfficeDBJ Green Building

DBJ Green BuildingGold

SilverRetailKawaguchi Center Bldg.

B-6

2013

2013

DBJ Green Building

DBJ Green Building

BronzeB-7
Certified

JPR Ueno East Bldg.

2013

Kawaguchi City, Saitama
Acquisition Price

Acquisition Price¥8,100 million
Site Area

4,524.61 m
Total Floor Space2013

Taito Ward, Tokyo¥3,250 million
Site Area

2

1,242.97 m2

Total Floor Space

28,420.85 m2

Structure/Floors

8,490.44 m2

Structure/Floors

S/SRC B2/15F

S/SRC B1/8F

Completed

CompletedFebruary 1994

October 1992

Property Manager

Property Manager

Nomura Building Management Co., Ltd.

Tachikawa Business Center Bldg.

B-8

Yasuda Real Estate Co., Ltd.

Rise Arena Bldg.

B-9
Toshima Ward, Tokyo

Tachikawa City, Tokyo
Acquisition Price

Acquisition Price¥5,831 million¥3,188 million
Site Area

Site Area

9,377.28 m (entire redevelopment project)

2,047.22 m2

Total Floor Space2

Total Floor Space

91,280.94 m2 (including residential tower)

14,706.36 m2

Structure/Floors

Structure/Floors

RC/SRC/S B3/42F*

S/SRC B1/12F
Completed

Completed

January 2007

December 1994
Property Manager

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

Tokyo Tatemono Co., Ltd.

*The commercial tower portion has 2 basement floors and 15 floors above ground.
DBJ Green Building

Yume-ooka Office Tower

B-10

Olinas Tower

Gold

Yokohama City, Kanagawa

2013

Sumida Ward,Tokyo
DBJ Green Building
DBJ Green Building

Acquisition PriceBronze¥6,510 million
Site Area

2013

DBJ Green Building

B-11
Silver2013

Certified

2013

12,011.00 m2

Total Floor Space

185,974.87 m2

Structure/Floors

S/SRC/RC B3/27F
Completed

March 1997
Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Yokohama Bldg.

B-12

Yokohama City, Kanagawa
Acquisition Price¥7,000 million
Site Area

1,110.28 m2

Total Floor Space

8,772.51 m2

Structure/Floors

SRC B1/9F
CompletedMay 1981
Property Manager

Tokyo Tatemono Co., Ltd.

28

Acquisition Price

Structure/Floors¥31,300 million

SRC/RC/S B2/45F*

Site Area

Completed

27,335.29 m2 (entire site area)
Total Floor Space
257,842.41 m2

Property Manager(includes commercial tower andresidential tower)

March 2006
Tokyo Tatemono Co., Ltd.

*The office building has 31 floors above ground and 2 floors underground.

Japan Prime Realty Investment Corporation

Greater Tokyo

Office/ Other Cities Office Retail

Retail

B-13

Omiya Prime East

Tanashi ASTA

B-1

Saitama City, Saitama

Nishitokyo City, Tokyo

Acquisition Price

Acquisition Price¥6,090 million
Site Area

2,268.09 m
Total Floor Space

¥10,200 million
Site Area

29,203.98 m2

Structure/Floors

S/9F

SRC B2/17F
CompletedFebruary 2009

February 1995

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

B-3

80,675.27 m2

Structure/Floors

Completed

Cupo-la Main Bldg.

12,326.30 m2

Total Floor SpaceTokyo Tatemono Co., Ltd.

JPR Musashikosugi Bldg.

B-4

Kawaguchi City, Saitama

Kawasaki City, Kanagawa

Acquisition Price

Acquisition Price¥2,100 million¥7,260 million

Site Area

Site Area

15,008.28 m2 (entire redevelopment project)

4,761.62 m2

Total Floor Space

Total Floor Space

48,321.96 m2

18,394.32 m2

Structure/Floors

Structure/Floors

S/RC/SRC B2/10F

SRC/RC/S B1/6F

Completed

Completed

January 2006

March 1983

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Musashiurawa Shopping Square

B-5

Acquisition Price
Site Area

Tokyo Tatemono Co., Ltd.

Kawasaki Dice Bldg.

B-6

Saitama City, Saitama

Kawasaki City, Kanagawa¥4,335 million
8,317.99 m2

Total Floor Space
Structure/Floors
Completed

28,930.36 m2
S

B1/4F

October 2005

Property Manager

Nippon Steel Kowa Real Estate Co., Ltd.
Tokyo Tatemono Co., Ltd.

Niigata Ekinan Center Bldg.

C-1
Niigata City, Niigata

Acquisition Price¥2,140 million
Site Area

2,706.99 m2

Total Floor Space

19,950.42 m2
Acquisition Price

Structure/Floors

Site Area

Completed

March 1996
Property Manager

Jones Lang LaSalle K.K.

Structure/Floors¥15,080 million

S/SRC B1/10F
Total Floor Space

4,475.45 m2
36,902.01 m2

S/SRC/RC B2/11F
Completed

August 2003
Property Manager

Tokyo Tatemono Co., Ltd.

29

II. Overview of JPR

Portfolio Properties
Other Cities

OfficeRetailTokyo Tatemono Honmachi Bldg.

JPR Hakata Bldg.

C-4

C-7

Osaka City, Osaka

Fukuoka City, Fukuoka
Acquisition Price

Acquisition Price¥2,900 million¥4,150 million
Site Area

Site Area

1,432.64 m
Total Floor Space

1,214.63 m2

2

Total Floor Space

14,619.52 m2

S/SRC B1/12F

SRC B3/9F
Completed

Completed

June 1985

February 1970
Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

JPR Naha Bldg.

Sompo Japan Sendai Bldg.

C-9

C-12
Sendai City, Miyagi

Naha City, Okinawa
Acquisition Price

Acquisition Price¥1,560 million
Site Area

959.87 m
Total Floor Space

¥3,150 million
Site Area

2

5,780.71 m2
SRC/S 12FSRC B1/12F
Completed

October 1991

December 1997

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

Tenjin 121 Bldg.

C-13

C-14
Fukuoka City, Fukuoka

Wakayama City, Wakayama
Acquisition Price

Acquisition Price¥1,670 million
Site Area

1,128.45 m
Total Floor Space

¥2,810 million
Site Area

2

1,164.39 m2

Total Floor Space

6,715.07 m2

Structure/Floors

S

9F

S/SRC 13F
Completed

July 1996

July 2000

Property Manager

Property Manager

Tokyo Tatemono Co., Ltd.

Tokyo Tatemono Co., Ltd.

JPR Hakata-Chuo Bldg.

C-17

C-18

Osaka City, Osaka
Acquisition Price¥2,140 million
Site Area

668.11 m
Total Floor Space

8,690.95 m2

Structure/Floors

Completed

JPR Dojima Bldg.

10,783.52 m2

Structure/Floors

Completed

Sompo Japan Wakayama Bldg.

1,895.67 m2

Total Floor Space

Structure/Floors

25,696.01 m2

Structure/Floors

SRC B2/9F
Completed

October 1993
Property Manager

Tokyo Tatemono Co., Ltd.

30

9,828.73 m2

Structure/Floors

Structure/Floors

Fukuoka City, Fukuoka
Acquisition Price¥1,920 million
Site Area

680.63 m2

Total Floor Space

3,874.81 m2

Structure/Floors

SRC 8F
CompletedFebruary 1993
Property Manager

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

OfficeRetail

DBJ Green Building

DBJ Green Building

JPR Nagoya Fushimi Bldg.

Yakuin Business Garden

C-19

Gold

Nagoya City, Aichi

Bronze¥4,137 million
1,610.38 m
Total Floor Space

2013

Fukuoka City, Fukuoka
DBJ Green Building
DBJ Green Building

Acquisition Price
Site Area

2013

C-20
Silver2013

Certified2013

2

10,201.44 m2

Structure/Floors

SRC B1/9F
Completed

March 1991
Property Manager

Tokyo Tatemono Co., Ltd.

Benetton Shinsaibashi Bldg.

C-3
Osaka City, Osaka

Acquisition Price
Site Area¥5,430 million
609.31 m2

Total Floor Space

5,303.98 m2
Acquisition Price

Structure/Floors

S B2/10F
CompletedFebruary 2003
expansion in January 2005
Property Manager

Tokyo Tatemono Co., Ltd.

JPR Umeda Loft Bldg.

C-1

Structure/Floors¥10,996 million
Site Area

4,348.43 m2

Total Floor Space2

SRC/14F
Completed

January 2009
Property Manager

22,286.35 m

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe

C-4
Kobe City, Hyogo

Osaka City, Osaka
Acquisition Price¥7,220 million
Site Area

3,994.47 m2

Total Floor Space

33,877.71 m2

Structure/Floors

SRC/S B2/11F
Completed

June 1994
Property Manager

Tokyo Tatemono Co., Ltd.

JPR Chayamachi Bldg.

C-5
Osaka City, Osaka
Acquisition Price¥6,000 million
Site Area

592.45 m2

Total Floor Space
Acquisition Price

Structure/Floors¥13,000 million
Site Area

3,518.68 m
Total Floor Space

Completed

June 1994

April 1990
Property Manager

17,897.56 m2

S/SRC 9FSRC B1/8F
Completed23,219.36 m2

Structure/Floors

Tokyo Tatemono Co., Ltd.

Property Manager

Tokyo Tatemono Co., Ltd.

31

II. Overview of JPR

8. Structure and History of JPR
The Objective and Basic Characteristics of JPR
With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties found in
thriving commercial areas, multi-use facilities and the land on which they are located as well as in asset-backed
securities that have such real estate as their primary investments.
In addition, in light of the returns and risks of these investment targets, JPR shall make it a basic policy to invest
not only in Tokyo, but also strive to diversify into other regional cities so as to maximize the advantages of
portfolio management.

Corporate History
Date

Description

September 6, 2001

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the investment corporation under Article69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)

September 14, 2001

Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act

November 16, 2001

Started asset management (acquisition of real estate beneficiary interests in trust for 13 underlying trust assets comprising 11
office properties and 2 retail properties) (¥40,730 million in total)

January 22, 2002

Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act

June 14, 2002

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

Structure of JPR

Administrative Agent forEnvironment-Related Laws andRegulations

40%

20%

20%

10%

10%

Tokyo Tatemono

Taisei Corporation

Yasuda Real Estate

Sompo Japan
Insurance

Meiji Yasuda
Life Insurance

Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents

Tokyo Tatemono Co., Ltd.

Japan Prime Realty
Investment Corporation

Tokyo Tatemono Co., Ltd.
Yasuda Real Estate Co., Ltd.
Taisei Corporation

Loans / Issue
of Investment
Corporation
Bonds

Asset
Management
Property

General Tenant Services Agent /Construction Management Agent /Property Transfer Agent /Administrative Agent forEnvironment-Related Laws andRegulations

Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager

Cash
Distribution

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Entrustment of Entrustment ofgeneralasset custodyadministration

32

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

Mizuho Trust & Banking, Co., Ltd.
and others

Japan Prime Realty Investment Corporation

9. Overview of Asset Manager
Overview
Name
Business Description
Capitalization

Shareholder
Composition (Note 1)

Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporation¥350 million
Tokyo Tatemono Co., Ltd. (40%)
Taisei Corporation (20%)
Yasuda Real Estate Co., Ltd. (20%)
Sompo Japan Insurance Inc. (10%)
Meiji Yasuda Life Insurance Company (10%)

Corporate History

April 28, 2000

EstablishedObtained license as real estate transaction agent(currently: No. (3) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act(Approval Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts andInvestment Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note 2)

October 13, 2000
March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

Applied for registration and submitted application form for financial instruments exchange business(Note 1) The percentage represents the ratio of the number of respective shares with voting rights to the total number of shares with voting rights.
(Note 2) 	Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006).

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors
President & CEO

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

Compliance Committee(Compliance Subcommittee)
Compliance Office

Investment Management
Division

Financial DivisionCorporate Planning /Administration Division

Research Group
Investment
Group

Asset
Management
1 Group

Asset
Management
2 GroupAsset
Engineering
Group

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions,as well as the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees comprise the President and CEO,
Investment Management Division General Manager, Financial Division General Manager, and Corporate Planning/ Administration Division General Manager. The Compliance Office General Manager also participates in thesecommittees to enhance confirmation in terms of legal compliance.
Matters concerning the targets and policies of investment management are decided by the Board of Directors, andmatters concerning planning and implementation of asset management are decided by the Investment Committee.
Matters concerning acquisition, disposition or management of individual properties are decided by the Investment
Subcommittee or the Fund Management Committee, respectively. Moreover, the Board of Directors has final
decision-making authority for acquisitions and dispositions of individual assets having over a certain amount of value.
33III. Asset Management Report

1. Overview of Asset Management(1) Changes in Operating Results and Other Management Data

Million yen

20th Fiscal
Period(Jul. 1, 2011 Dec. 31, 2011)
11,772

21st Fiscal
Period(Jan. 1, 2012 Jun. 30, 2012)
12,34522nd Fiscal
Period(Jul. 1, 2012 Dec. 31, 2012)
12,96323rd Fiscal
Period(Jan. 1, 2013 Jun. 30, 2013)13,27824th Fiscal
Period(Jul. 1, 2013 Dec. 31, 2013)
13,591Million yen

11,772

12,345

12,963

13,27813,591Million yen

6,009

5,952

6,198

6,893

7,223

Million yen

5,357

5,217

5,519

6,208

6,534

Operating Income

Million yen

5,763

6,393

6,765

6,385

6,368

Ordinary Income

Million yen

4,201

4,597

5,026

4,975

4,899

Net Income

Million yen

4,200

4,596

5,025

4,974

4,954

Total Assets

Million yen

360,699

396,017

401,984

409,715

413,974(+0.2)(+9.8)(+1.5)(+1.9)(+1.0)

㻌
Fiscal Period

Unit

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance㻌
Operating Revenue
㻌

Rent revenue – real estate

Operating Expenses
㻌

Expenses related to rent business(Period-on-period variation)%

Interest-bearing Debt

Million yen

163,005

195,081180,557

187,158

191,759

Total Unitholders Equity

Million yen

175,640

176,035

197,168

197,116

197,095(Period-on-period variation)%(+0.1)(+0.2)(+12.0)(-0.0)(-0.0)

Unitholders' CapitalMillion yen

171,339

171,339

192,044

192,044

192,044

Total Cash Distributions

4,954

Million yen

4,201

4,597

5,026

4,975

Dividend payout ratio

%

100.0

100.0

100.0

100.0

100.0

Number of Units Outstanding

units

715,000

715,000

825,000

825,000

825,000

Total Unitholders' Equity per unit

Yen

245,651

246,204

238,992

238,929

238,903

Cash Distribution per Unit

Yen

5,876

6,430

6,093

6,031

6,006

㻌

Distribution amount

Yen

5,876

6,430

6,093

6,031

6,006

㻌

Exceeding profit distribution amount

Yen

-

-

-

-

-

Ordinary Income on Total Assets (Note 1)

%

1.2

1.2

1.3

1.2

1.2

%

2.3

2.4

2.5

2.5

2.4

%

2.4

2.6

2.7

2.5

2.5

%

4.7

5.2

5.3

5.1

5.0

175,452

175,640

176,035

197,168

197,116

48.7

44.5

49.0

48.1

47.6

(-0.0)(-4.2)(+4.6)(-0.9)(-0.5)

%

45.2

49.3

44.9

45.7

46.3

㻌

㻌

Annualized (Note 10)

Financial Indices

Net Income on Total Unitholders' Equity(Note 2)
㻌

Annualized (Note 10)㻌Total unitholders' equity at beginningof period

Unitholders' Equity Ratio at End of Period(Note 3)%

(Period-on-period variation)
Interest-bearing Debt to Total Assets at
End of Period (Note 4)
DSCR (Note 5)

Times

5.3

5.4

6.0

6.3

6.1

㻌

Net income before interest andamortization (Note 6)

Million yen

7,427

7,811

8,226

8,163

8,149

㻌

Interest expenses

Million yen

1,402

1,459

1,368

1,304

1,325

Million yen

8,239

8,882

9,275

8,953

8,925

%

4.7

4.7

4.7

4.5

4.4

Million yen

7,628

8,271

8,595

8,359

8,080

%

4.4

4.4

4.4

4.2

4.0

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

NCF from Leasing (Note 8)㻌Reference
Information

Million yen

Annualized NCF yield (Notes 9 and
10)Investment Properties Owned (Note 11)
Number of Tenants

㻌
㻌

57

58

59

60

62

501

502

534

564

610

Total Leasable Floor Spacem2

423,311.93

434,340.04

450,943.43

460,452.47

467,207.05

Occupancy Rate

%

95.6

94.1

94.9

96.9

96.5

(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 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 / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Net income - gain on sale of real estate + loss on sale of real estate + loss on sale of investment securities + extraordinary loss + interest expenses (includinginterest expenses on investment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from leasing / property acquisition price (20th fiscal period: ¥344.98 billion, 21st fiscal period: ¥380.98 billion, 22nd fiscal period: ¥391.98
billion, 23rd fiscal period: ¥398.64 billion and 24th fiscal period: ¥404.72 billion)
Annualized NCF from leasing / property acquisition price3434

Japan Prime Realty Investment Corporation(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 20th fiscal period: 184 days, 21st fiscal period: 182days,
22nd fiscal period: 184 days, 23rd fiscal period: 181 days and 24th fiscal period: 184 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East Bldg., Shinyokohama 2nd Center Bldg.,
Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded off to the first decimal place).

(2) 24th Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts
and Investment Corporations (Act No. 198 of 1951, as amended; hereafter, the Investment Trusts Act), and was listed on theTokyo Stock Exchange (TSE) Real Estate Investment Trust Section (securities code: 8955) on June 14, 2002 with 289,600
outstanding investment units. Subsequently, JPR conducted five public offerings and other equity financing measures, with thenumber of investment units issued and outstanding totaling 825,000 units at present. 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 primarily comprising office properties and retail properties.
2) Management Environment
During the 24th fiscal period, the market environment continued to show trends for the weakening yen and higher stock prices inlight of the prevailing expectations for economic recovery through the “Abenomics” initiatives. The higher stock prices were alsobolstered by the expectations for continuous business upturn thanks to the anticipated economic ripple effect of the infrastructuredevelopment and enhancement projects associated with the selection of Tokyo as the host of the 2020 Olympic Games.
In terms of actual demand, domestic demand from consumer spending and public works remained strong, although exports
somewhat lacked momentum.
The Office Property Leasing Market
In the 23 wards of Tokyo, the supply and demand balance in the office property leasing market has been improving due toexpansion in new demand, including increased office space within the same buildings, in accordance with the recovery ofbusiness confidence, on top of new supply becoming more controlled. Given this situation, the rent levels for new contracts havetaken an upward turn for Class S and Class A buildings. Moreover, there are growing requirements for properties with highfacility specifications, mainly from cost-conscious companies, from the viewpoint of energy saving and business continuity plans,among other considerations. Accordingly, the environment appears to have become increasingly favorable for such properties or
those that claim high tenant satisfaction in terms of management to benefit from the recovery in the market conditions more thanothers.
The Retail Property Leasing Market
Recovery of business confidence helped improve consumers’ willingness to buy, with consumption of luxury goods remaining
strong particularly due to the financial assets effect as a result of higher stock prices. Urban retail properties in good locations,such as Ginza and Omotesando, have seen vacancies drop, with rents presumably taking an upward turn and increasing. On theother hand, there has arisen a gap among tenants in terms of their ability to bear rent burdens, as the positive impact of therecovery in consumer spending has not yet spread across all retail businesses.
The For-Sale Real Estate Market
The transaction volume expanded, including deals of large-scale projects, as initial public offerings and public offerings by
REITs took place one after another against the backdrop of a favorable fund procurement environment. However, with a distinct
trend of acquisitions of properties by REITs being made from their sponsors, the supply and demand situation in the for-sale realestate market is becoming increasingly tighter, mainly for quality properties. Under such circumstances, the transaction price ofreal properties is being formed with the anticipated recovery in the leasing market taken into account.
3) Portfolio Management Status
New Property Acquisitions
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality and stabilizing earnings of the portfolio while paying attention tobalancing diversification of the portfolio, both in terms of location and asset class.
During the 24th fiscal period, JPR acquired Science Plaza-Yonbancho Plaza (acquisition price: 2.66 billion yen) andShibadaimon Center Building (acquisition price: 3.42 billion yen), resulting in the balance of assets under management now
totaling 62 properties, or 404.7 billion yen on an acquisition price basis, as of the end of December 2013. The total leasable floor
space is now 467,207m2 and the number of tenants has reached 610.
Operational Management of Portfolio
The vacancy rate in the office property leasing market showed a downward trend in the 24th fiscal period, given the supply and3535

III. Asset Management Reportdemand balance improving in Tokyo and other areas. Under such circumstances, JPR endeavored to attract new tenants throughstrategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation with property
management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving occupancy rates.
As a result, JPR successfully kept the occupancy rate at a high level, which stood at 96.5% at end of the 24th fiscal period.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR
continued to proactively implement value enhancement works based on tenant needs with the aim to create spaces where theworkers feel satisfaction. As an endeavor to implement energy-saving measures, JPR conducted renovation of air-conditioning
systems and replacement of lighting equipment in the common areas with LED lamps, which are expected to be effective insaving energy, at its multiple properties. Furthermore, in association with the latest renovation works of air-conditioning systems,
JPR was granted subsidies of the 2012 Home and Building Energy-Efficient Renovation Promotion Program*1 for two of its
properties.
In addition, JPR is proactively engaged in environmental friendliness, continuously working to obtain environmental
certifications (the DBJ Green Building Certification*2 and the recognition by GRESB*3).
*1 The Program has been established by the Ministry of Land, Infrastructure, Transport and Tourism to promote energy-efficient renovation and activate related
investments by soliciting public subscription widely from private-sector operators, etc. on energy-efficient renovation projects for housing and buildings andfinancially supporting part of the development expenses within the limits of the budget.
*2 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet thevarious social requirements surrounding real estate from stakeholders (“Green Buildings”)*3 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estatecompanies, REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a groupof the same name composed of more than 20 organizations worldwide such as European pension asset managers.

Fund Procurement
JPR is engaged in conservative financial operations, setting the ceiling of the interest-bearing debt ratio (Note 1) at 55% as a ruleand working to control the ratio largely at 50% or lower in practice.
In debt financing, JPR continued to maintain financial stability by conducting bank borrowings at long-term fixed interest rates
with an eye on reducing risks of rising interest rates while remaining attentive to the diversification of repayment dates, etc.
JPR established a commitment line with credit limit of 28 billion yen in order to reduce refinancing risks and secure stable fundprocurement.
In the 24th fiscal period, JPR procured funds of 23 billion yen in total, including borrowings associated with property
acquisitions and refinancing of loans upon maturity. As a result, the balance of total outstanding borrowings as of the end of the
fiscal period was 135.2 billion yen, with corporate bonds of 56.5 billion yen.
As of the end of the 24th fiscal period, JPR had an interest-bearing debt ratio of 48.0%, long-term and fixed interest-bearing debt
ratio (Note 2) of 97.2%, average interest rate (Note 3) of 1.35%, and average maturity (Note 4) of 3.5 years. Furthermore, thecurrent portion of long-term interest-bearing debt was 30.2 billion yen.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of December 31, 2013
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1

Moody's Japan K.K. (Note 5)

A3 (Stable)(Note 1) Interest-bearing debt ratio: interest-bearing debt / (total assets + real estate appraisal profit and loss)
Real estate appraisal profit and loss represents the difference between the appraisal value at end of period and the book value at end of period of thespecified assets owned by JPR.
(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debt / total interest-bearing debt
(Note 3) Average interest rate is arrived at by calculating a weighted average of interest rates for all interest-bearing debt as of the end of the 24th fiscal period basedon the balance of each interest-bearing debt.
(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 24th fiscal period to the repayment deadlines for all
interest-bearing debt based on the balance of each interest-bearing debt.
(Note 5) JPR had its ratings assigned by Moody’s Japan K.K. withdrawn on January 21, 2014.

3636

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 24th fiscal period.
Date

Event

Number of Units
Outstanding

Unitholders' Capital(millions of yen)

Remarks

Variation
240

Balance240

Variation
120

Balance
120(Note 1)

September 14, 2001

Established by private placement

November 16, 2001

Additional private placement

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 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 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)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

July 30, 2012

Additional public offering

101,420

816,420

19,089190,429(Note 13)

August 29, 2012

Third-party allotment

8,580

825,000

1,614

192,044(Note 14)

(Note 1)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment(Note 2)

An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in real estate trust and started

Management, Inc. (40 units) at 500,000 yen per unit.
management.
(Note 3)(Note 4)

A single investment unit was split into 2.5 units.
New investment units were issued through a 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, etc.

(Note 5)New investment units were issued through a 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)(Note 7)

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.
New investment units were issued through a 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)(Note 9)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.
New investment units were issued through a 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)(Note 11)

New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debt, acquire new specific assets, etc.
New investment units were issued through a public offering at 168,101 yen per unit (underwriting price of 162,382 yen per unit) to repay short-term debt,
redeem investment corporation bonds, acquire new specific assets, etc.

(Note 12)

New investment units were issued through a third-party allotment at 162,382 yen per unit to repay short-term debt, redeem investment corporation bonds,
acquire new specific assets, etc.

(Note 13)

New investment units were issued through a public offering at 194,610 yen per unit (underwriting price of 188,222 yen per unit) to partly fund acquisition of
new specific assets and repay debts.

(Note 14)

New investment units were issued through a third-party allotment at 188,222 yen per unit to partly fund acquisition of new specific assets and repay debts.

3737

III. Asset Management Report(4) Cash Distributions
With regard to the cash distributions, JPR decided to distribute part of the retained earnings brought forward that had been internallyreserved through the 23rd fiscal period, with the aim of having the profit distributions deducted as expenses based on application of
the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation) andin order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. As a result, the cash distribution perunit came to 6,006 yen for the 24th fiscal period.
(Thousands of yen unless otherwise indicated)
20th Fiscal
Period21st Fiscal
Period22nd Fiscal
Period23rd Fiscal
Period24th Fiscal
Period(Jul. 1, 2011 Dec. 31, 2011)(Jan. 1, 2012 Jun. 30, 2012)(Jul. 1, 2012 Dec. 31, 2012)(Jan. 1, 2013 Jun. 30, 2013)(Jul. 1, 2013 Dec. 30, 2013)

4,226,806

4,622,149

5,050,424

4,998,468

4,976,931

25,466

24,69923,69922,893

21,981

Total Cash Distributions

4,201,340

4,597,450

5,026,725

4,975,575

4,954,950(Cash Distribution per Unit)

Fiscal Period

Unappropriated Retained Earnings at End of Period
Internal Reserves㻌㻌㻌Breakdown㻌(5,876 yen)

(6,430 yen)

(6,093 yen)

(6,031 yen)

(6,006 yen)

Total Cash Distributions from Net Income

4,201,340

4,597,450

5,026,725

4,975,575

4,954,950(Cash distribution from net income per unit)(5,876 yen)

(6,430 yen)

(6,093 yen)

(6,031 yen)

(6,006 yen)

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(5) Future Management Policies and Vital Issues
As for the prospects of the Japanese economy, expectations are placed on private capital investment increasing in line with therecovery of corporate performances, while growth in external demand is also hoped for in accordance with the developed economies
picking up. On the other hand, there is a concern about the expectations for economic recovery being tapered by the wide fluctuations
between rush demand and a reactionary fall in demand before and after the increase in the consumption tax rate. Whether the
economic recovery, which has been preceded by expectations, will turn out to be a continuous recovery in the economy accompaniedby actual demand will require monitoring.
In the office property leasing market, the general recovery in the market situation will presumably be a modest one, with polarizationby property further advancing amid continued improvement in the supply and demand condition. In this regard, JPR believes it will
be able to fully enjoy the positive impact of the market recovery as it has focused on improving tenant satisfaction through proactive
implementation of value enhancement works and provision of elaborate management services. In addition, when conducting realestate transactions in the market where polarization of earnings by property is anticipated to further advance, it is likely to become
even more important to discern the growth potential of earnings of respective properties.
Currently, REITs are positioned as powerful buyers of properties. However, their ability to procure funds will be largely affected by
the interest rate levels. As such, it will be required to keep attentive monitoring of the future trends in interest rates.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on the Tokyo office properties, with an aim to improve the quality of its portfolio
and enhance its growth potential in the recovery cycle of the market. Real estate transactions are heading for expansion, as adecrease in purchase cap rate and expected cap rate levels has been observed along with increasing expectations for recovery in
the for-sale office property market conditions, and we believe property supply to the transaction market will increase going
forward. As for retail properties as well as office properties in regional cities, which allow us to expect higher yields than theTokyo office properties, JPR will work to invest in strictly selected blue-chip properties that can keep stable revenues at a certain
level in order to complement the stability of earnings from the entire portfolio. JPR will strive to acquire new properties underreasonable terms by negotiating prices based on detailed market studies and property due diligence in considering properties.
JPR will continue to make investment decisions after a proactive collection of information through such sources as sponsors of
the Asset Manager (Tokyo Tatemono Co., Ltd., Taisei Corporation, Yasuda Real Estate, Co., Ltd., Sompo Japan Insurance Inc.
and Meiji Yasuda Life Insurance Company) (hereafter collectively referred to as the “Sponsors”), accurately grasping market
trends and carefully researching investment value, including the future potential of candidate properties.
Moreover, JPR will continue to investigate asset replacement, centering on properties that do not allow us to expect sustainablegrowth in the future or those that may be sold under better terms and conditions.

3838

Japan Prime Realty Investment Corporation

2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants andencourage them to expand office spaces in the same buildings through endeavors to enhance tenant satisfaction, while
continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct management and operations
based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions in anticipation of the recovery in the leasing market and accelerate decision making- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction- Reinforce responses to energy saving, business continuity plans and other matters commanding high social requests(6) Fund Procurement
JPR's fundamental policy for fund procurement calls for an efficient combination of long-term steady fund procurement andshort-term fund procurement that emphasizes dynamism. In line with this policy, JPR will procure funds through unsecured andunguaranteed bank borrowings as well as the issuance of investment corporation bonds. JPR will continue to focus on thediversification of fund procurement means and consistently strive to diversify maturities.

(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 concerning JPR, along with the timely disclosure of items to theTokyo Stock Exchange. JPR is proactively employing its website (http://www.jpr-reit.co.jp/jpr_e/) as well as its specified website forretail investors (http://www.jpr-reit.co.jp/kojin/index.html (Japanese only)) as a vital means for implementing voluntary disclosure,and JPR has promptly disclosed performance information and has provided videos on its primary properties using this site. We arecommitted to further enriching our information disclosure activities.

(8) Significant Subsequent Events
Issuance of unsecured investment corporation bonds
On January 28, 2014, JPR made the following decision to issue investment corporation bonds based on the comprehensive resolution
adopted at the Board of Directors’ meeting held on April 25, 2013. Payment for the investment corporation bonds was completed on
February 5, 2014.
Name of the bonds

Japan Prime Realty Investment Corporation 19th Series of Unsecured Investment Corporation Bonds(with special pari passu conditions among specified investment corporation bonds)

Total issue amount

5 billion yen

Subscription date

January 28, 2014

Interest rate

1.11% per annum

Payment dateFebruary 5, 2014

Collateral

Unsecured / unguaranteed

Purchase price

100 yen per 100 yen of the investment
corporation bonds

Redemption method andredemption date

The total amount of the bonds will be redeemed on February 5, 2024.The bonds may be repurchased and cancelled
at any time on and after the day following the payment date, unless otherwise determined by the book-entry
transfer agent

Use of funds

Redemption of investment corporation bonds3939

III. Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital
20th Fiscal
Period as ofDecember 31, 2011
5,000,000

21st Fiscal
Period as ofJune 30, 2012
5,000,000

22nd Fiscal
Period as ofDecember 31, 2012
5,000,000

23rd Fiscal
Period as ofJune 30, 2013
5,000,000

24th Fiscal
Period as ofDecember 31, 2013
5,000,000

Total number of units issued andoutstanding

715,000

715,000

825,000

825,000

825,000

Unitholders' capital (millions of yen)

171,339

171,339

192,044

192,044

192,044

Total number of unitholders

14,51314,148

14,525

13,965

12,877

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the 10 largest investors according to the percentage of their owned investment units to the total number ofunits outstanding as of the end of the 24th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units
193,340

Units Outstanding (%)
23.43

Japan Trustee Services Bank, Ltd. (Trust Account)

1-8-11 Harumi, Chuo-ku, Tokyo

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

2-11-3 Hamamatsucho, Minato-ku, Tokyo

51,876

6.28

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

Harumi Island Triton Square Office Tower Z
Building, 1-8-12 Harumi, Chuo-ku, Tokyo

51,822

6.28

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

2-2-2 Otemachi, Chiyoda-ku, Tokyo

41,571

5.03

Tokyo Tatemono Co., Ltd.

1-9-9 Yasesu, Chuo-ku, Tokyo

29,300

3.55

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,000

3.03

Meiji Yasuda Life Insurance Company

2-1-1 Marunouchi, Chiyoda-ku, Tokyo

24,0002.90

Nomura Bank (Luxembourg) S. A. (Standing Proxy:
Sumitomo Mitsui Banking Corporation)

Batiment A, 33, Rue de Gasperich, L-5826,
Luxembourg(1-2-3 Otemachi, Chiyoda-ku, Tokyo)

13,9201.68

State Street Bank West Client Treaty (Standing Proxy:
Settlement & Clearing Services Division, Mizuho Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)

11,419

1.38

State Street Bank West Pension Fund Clients Exempt(Standing Proxy: Settlement & Clearing Services Division,
Mizuho Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
(4-16-13 Tsukishima, Chuo-ku, Tokyo)

9,734

1.17

451,982

54.78

Total
(Note) Percentage of total units outstanding is rounded off to the second decimal place.

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 24th fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 1)

Independent
Auditor (Note 2)

Name

Other Current Assignments

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office

Sosuke Yasuda

Advisor, Gyosei Audit Corporation
Group representative partner, GYOSEI Certified
Public Tax & Accountants’ Co.
Outside Auditor, Nomura Research Institute, Ltd.
(part-time)
Outside Auditor, MS&AD Insurance Group Holdings(part-time)

Masato Denawa

Partner Attorney, Spring Partners

Ernst & Young
ShinNihon LLC-

Total Directors' Fee
during the 24th Fiscal
Period (thousands of yen)
2,400

4,200

Numberof Owned
Units
-

-

13,000-(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.

4040

Japan Prime Realty Investment Corporation

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 Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof 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 24th fiscal period are as follows.
Outsourcing Category
Asset management company

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration, etc. concerning unitholders' list, etc.)

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning corporate bonds)

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

4141

III. Asset Management Report

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset TypeArea

23rd Fiscal Period(as of June 30, 2013)

24th Fiscal Period(as of December 31, 2013)

Central Tokyo

Assets owned by JPR(thousands of yen)
80,640,667

Percentage of total
assets (%)
19.7

Assets owned by JPR(thousands of yen)
80,654,243

Percentage of total
assets (%)
19.5

Greater Tokyo

62,240,380

15.2

61,805,008

14.9

Other Cities

22,051,788

5.4

21,873,507

5.3

Central Tokyo

125,720,443

30.7

131,782,696

31.8Greater Tokyo

51,343,259

12.5

51,074,314

12.3

Other Cities

44,090,258

10.8

44,035,454

10.6

Deposits and otherassets-㻌 23,628,900
(-)

5.8
(-)

㻌 22,749,249
(-)

5.5
(-)

Total assets-

409,715,697(386,086,796)

100.0
㻌 㻌 㻌 (94.2)

413,974,474(391,225,225)

100.0㻌 㻌 㻌 (94.5)

Real estate

Real estate in trust(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheet as of the end of the fiscal periods (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.

(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 endof the 24th fiscal period.
Book Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Otemachi Tower (Land with
Leasehold Interest)

38,388,259

11,034.78

11,034.78

100.0

11.6

OfficeOlinas Tower

29,327,613

23,987.40

22,596.64

94.2

7.3

OfficeShinjuku Center Bldg.

22,006,040

8,863.98

8,002.89

90.3

3.2

OfficeBYGS Shinjuku Bldg.

15,688,055

15,211.49

14,025.57

92.2

3.6

OfficeJPR Sendagaya Bldg.

15,173,237

6,177.74

6,177.74

100.0

2.0

OfficeKanematsu Bldg.

14,768,682

7,994.02

7,592.33

95.0

2.6

OfficeKawasaki Dice Bldg.

14,266,483

12,116.35

11,961.03

98.7

3.0

RetailJPR Umeda Loft Bldg.

12,514,428

18,586.97

18,586.97

100.0

3.0

RetailJPR Shibuya Tower Records
Bldg.

11,619,566

8,076.85

8,076.85

100.0

2.6

RetailOfficeProperty Name

Yakuin Business Garden
Total

11,231,176

16,654.33

15,790.14

94.8

2.8

184,983,543

128,703.91

123,844.94

96.2

41.7

Asset Class(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 fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate enteredfor each of these buildings are the figures concerning the sub-lessee of the tenant.

4242

Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 24th fiscal period (December 31, 2013).

Area Type

Property Name

Location

Form ofOwnership

Book Valueas of December
31, 2013(thousands of yen)

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
Fukuoka Bldg.
(additional acquisition in 7th period)
JPR Ichigaya Bldg.

OfficeOfficeRetailGreater Tokyo

RetailCentral Tokyo

Oval Court Ohsaki Mark West
Shinjuku Square Tower
Shinjuku Square Tower(additional acquisition in 14th period)
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex

14-1 Kyobashi 2-chome, Chuo-ku, Tokyo
17-5 Kyobashi 2-chome, Chuo-ku, Tokyo
17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo
3-3 Kojimachi 4-chome, Chiyoda-ku, Tokyo
21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo
13-23 Shibaura 4-chome, Minato-ku, Tokyo
8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
8-7 Yaesu 2-chome, Chuo-ku, Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo

19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo
16-14 Shinkawa 1-chome, Chuo-ku, Tokyo
25-1 Nishi-Shinjuku 1-chome, Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
12-3 Minami-Azabu 2-chome, Minato-ku,
Minami Azabu Bldg.
Tokyo
Shinagawa Canal Bldg.
12-33 Konan 2-chome, Minato-ku, Tokyo
Rokubancho Bldg.
2-9, etc., Rokubancho, Chiyoda-ku, TokyoJPR Harajuku Bldg.
17-11 Jingumae 6-chome, Shibuya-ku, Tokyo
Tokyo Tatemono Kyobashi Bldg.
6-18 Kyobashi 3-chome, Chuo-ku, Tokyo
11-12 Nihonbashi-Horidomecho 1-chome,
JPR Nihonbashi-horidome Bldg.
Chuo-ku, Tokyo
JPR Sendagaya Bldg.
23-5 Sendagaya 4-chome, Shibuya-ku, Tokyo
Ginza Sanwa Bldg.
6-1 Ginza 4-chome, Chuo-ku, Tokyo
Otemachi Tower (Land with Leasehold 6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Interest)
Tokyo
Science Plaza-Yonbancho Plaza
9-6, etc., Yonbancho, Chiyoda-ku, Tokyo
Shibadaimon Center Bldg.
1-10-11 Shibadaimon, Minato-ku, Tokyo
JPR Shibuya Tower Records Bldg.
22-14 Jinnan 1-chome, Shibuya-ku, TokyoJPR Daikanyama
20-5 Daikanyamacho, Shibuya-ku, TokyoJPR Jingumae 432
32-13 Jingumae 4-chome, Shibuya-ku, Tokyo
Shinjuku Sanchome East Bldg.
1-25, Shinjuku 3-chome, Shinjuku-ku, Tokyo
Yurakucho Ekimae Bldg.
7-1 Yurakucho 2-chome, Chiyoda-ku, Tokyo(Yurakucho Itocia)
Arca East
2-1 Kinshi 3-chome, Sumida-ku, TokyoJPR Chiba Bldg.
1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba
17 Nihon-Odori, Naka-ku, Yokohama,
JPR Yokohama Nihon Odori Bldg.
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Shinyokohama 2nd Center Bldg.
Kohoku-ku, Yokohama, Kanagawa
Kawaguchi Center Bldg.
1-8 Honcho 4-chome, Kawaguchi, Saitama
JPR Ueno East Bldg.
3-5 Matsugaya 1-chome, Taito-ku, Tokyo
Tachikawa Business Center Bldg.
Tachikawa Business Center
38-5 Akebonocho 2-chome, Tachikawa, Tokyo
Bldg.(additional acquisition in 11th
period)5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Rise Arena Bldg.
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yume-ooka Office Tower
Yokohama, Kanagawa
Olinas Tower
1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Tokyo Tatemono Yokohama Bldg.
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Omiya Prime East
Saitama, Saitama
Tanashi ASTA
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
Cupo-la Main Bldg.
1-1 Kawaguchi 1-chome, Kawaguchi, Saitama
420-1,etc., Kosugimachi 3-chome,
JPR Musashikosugi Bldg
Nakahara-ku, Kawasaki, Kanagawa
Musashiurawa Shopping Square
3-1 Bessho 7-come, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kawasaki Dice Bldg.
Kanagawa

Appraisal Valueas of December
31, 2013(thousands of yen)

(Note)
11,700,000
2,280,000

Beneficiary interest
Beneficiary interest

14,768,682
2,447,303

Beneficiary interest

1,968,441

2,260,000

Beneficiary interest

2,395,486

3,000,000

Beneficiary interest

3,392,233

2,840,000

Beneficiary interest

10,997,967

11,000,000

Beneficiary interest

2,676,576

2,700,000

Beneficiary interest

1,771,825

Real estate

1,140,670

Beneficiary interest

5,268,928

4,640,000

Beneficiary interest

3,055,499

4,460,000

Beneficiary interest

8,768,359

Real estate

176,921

Real estate
Real estate

15,688,055
609,234

13,600,000
809,000

Real estate

22,006,040

12,800,000

Real estate

3,918,285

2,330,000

Real estate
Real estate
Beneficiary interest
Real estate

1,800,992
2,887,963
8,753,183
5,343,517

1,780,000
3,180,000
6,980,000
4,950,000

2,790,000

7,646,000

Beneficiary interest

5,033,063

5,920,000

Real estate
Real estate

15,173,237
3,643,490

11,100,000
3,350,000

Beneficiary interest

38,388,259

37,900,000

Beneficiary interest
Beneficiary interest
Beneficiary interest
Real estate
Beneficiary interest
Real estate

2,700,337
3,449,233
11,619,566
2,194,450
4,327,748
2,706,320

2,780,000
3,730,000
12,600,000
1,460,000
3,320,000
2,500,000

Real estate

3,365,063

2,730,000

Beneficiary interest
Beneficiary interest

4,516,672
2,375,884

6,040,000
1,670,000

Beneficiary interest

2,619,671

2,380,000

Beneficiary interest

1,482,967

1,700,000

Beneficiary interest
Real estate
Beneficiary interest

7,125,660
3,080,339
783,5227,400,000
4,430,000

Real estate

2,185,128

Real estate

5,503,914

2,910,000
6,450,000

Real estate

5,718,933

5,410,000

Real estate

29,327,613

33,400,000

Real estate

6,939,090

6,970,000

Beneficiary interest

6,238,137

6,370,000

Beneficiary interest
Real estate

7,673,137
1,854,611

12,500,000
2,540,000

Real estate

7,195,376

5,260,000

Beneficiary interest

3,992,178

4,090,000

Beneficiary interest

14,266,483

14,800,0004343

III. Asset Management Report

Area Type

Property Name

Form ofOwnership

LocationBook Valueas of December
31, 2013(thousands of yen)

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
OfficeOther Cities

Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden

RetailJPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
6-12 Hakataeki-mae 2-chome, Hakata-ku,
Fukuoka, Fukuoka
24-15 Sakae 1-chome, Naka-ku, Nagoya, Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
16-7 Chayamachi, Kita-ku, Osaka, Osaka
2-11 Minami-Senba 4-chome, Chuo-ku, Osaka,Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo
2-19 Chayamachi, Kita-ku, Osaka, Osaka

Appraisal Valueas of December
31, 2013(thousands of yen)

(Note)

Beneficiary interest

1,762,621

2,230,000

Beneficiary interest

4,146,599

3,230,000

Beneficiary interest

3,134,079

2,640,000

Beneficiary interest

1,405,240

1,350,000

Beneficiary interest

2,307,220

3,280,000

Beneficiary interest

1,263,948

1,580,000

Beneficiary interest

2,247,632

2,080,000

Beneficiary interest

2,196,664

2,020,000

Beneficiary interest

1,866,619

1,630,000

Real estate

4,115,672

2,830,000

Real estate

11,231,176

11,400,000

Beneficiary interest

12,514,428

13,800,000

Beneficiary interest

5,197,390

4,360,000

Real estate

6,526,658

6,470,000

Beneficiary interest

5,993,010
391,225,225

4,640,000
376,995,000(Note) The appraisal 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 of investment corporations.”

The following table provides changes in rental business results for each of JPR’s real estate properties and beneficiary interests inreal estate.

OfficeRetailCentral Tokyo

Area Type

4444

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
Fukuoka Bldg.
(additional acquisition in 7th period)
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
Shinjuku Square Tower(additional acquisition in 14th period)
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.
JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

23rd Fiscal Period
24th Fiscal Period(from Jan. 1, 2013 to Jun. 30, 2013)(from Jul. 1, 2013 to Dec. 31, 2013)
RentalRentalNumberRatio to Number Occupancy
Ratio toOccupancy Revenues
Revenues
of
Total
of
Rate at
Total
Rate atthroughout
throughout
Tenants
RentalTenants
PeriodRentalPeriod End
PeriodPeriodat Period
Revenues at PeriodEnd
Revenues(%)(thousands(thousands
End
(%)
End
(%)
(%)
of yen)of yen)10
100.0
365,5442.8
995.0
377,4322.8
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
4
100.0
63,8830.5
4100.0
84,4180.6
15
100.0
99,3400.7
1491.1
105,072
0.8
6
70.6
70,7250.5
551.4
73,4060.5
793.2
356,5552.7
8
100.0
401,2233.0
2
100.0
131,4191.0
2100.0
133,800
1.0
100.0(Note 2) (Note 2)
100.0(Note 2) (Note 2)
1
1
100.0
(Note 2) (Note 2)
100.0(Note 2) (Note 2)
9
3

100.0
100.0
100.0

163,324
178,310
184,459

1.2
1.3
1.4

100.0

2,834

0.0

24
4
29
0
4
1
8
2
7
6
8

98.9
100.0
89.6
0.0
89.9
100.0
98.1
100.0
100.0
100.0
100.0

546,651
39,701
441,255
5
62,276(Note 2)
208,392(Note 2)
185,498
244,790
116,486

4.1
0.3
3.3
0.0
0.5
(Note 2)
1.6
(Note 2)
1.4
1.8
0.9

1

100.0

1,439,171

1
3
6
1

100.0
76.5
100.0
100.0

(Note 2)28,36089,478(Note 2)1100.0(Note 2)

26

9
3
25

100.0
100.0
97.4

167,709180,721
197,237

1.2
1.3
1.5

97.4

3,030

0.0

25
3
30
1
4
1
9
2
7
6
8

92.2
84.0
90.3
100.0
89.9
100.0
100.0
24.1
100.0
100.0
100.0

495,574
42,315439,630(Note 2)58,963(Note 2)
221,247(Note 2)
196,443
240,205
117,738

3.6
0.3
3.2
(Note 2)0.4
(Note 2)
1.6
(Note 2)
1.4
1.8
0.9

10.8

1

100.0

1,469,500

10.8(Note 2)0.2
0.7
(Note 2)

23
7
1
3
6
1

90.2
100.0
100.0
76.5
86.6
100.0

15,24818,884(Note 2)
27,43669,446(Note 2)0.1
0.1
(Note 2)0.2
0.5
(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

Japan Prime Realty Investment Corporation

23rd Fiscal Period(from Jan. 1, 2013 to Jun. 30, 2013)

OfficeOfficeRetailOther Cities

RetailGreater Tokyo

Area Type

Property Name

Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Tachikawa Business Center Bldg.
(additional acquisition in 11th period)
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

24th Fiscal Period(from Jul. 1, 2013 to Dec. 31, 2013)

RentalNumberRatio to Number
RentalOccupancy Revenues
Ratio toofOccupancy Revenues
of
Total
Total
Rate atthroughout
Tenants
Rate atthroughout
RentalTenants
Rentalat
Period End
PeriodPeriod End
PeriodRevenues
at Period
Revenues Period(%)(thousands(%)(%)(thousands
End
of
yen)
End
(%)
of yen)5
93.1
226,9511.7
5
93.1
254,8351.9
39
95.1
122,3560.9
37
92.3
132,527
1.0
13
100.0
129,936
1.0
13
100.0
130,5761.0
14
85.1
71,0160.5
16
91.4
96,3880.7
4192.9
338,0392.5
4293.8
363,2192.7
7
94.3
161,4091.2
8
100.0
171,976
1.3
100.0
58,8260.4
100.0
62,952
0.5
18
18
100.0
89,9900.7
96.6
90,549
0.7
1
32
10
14
4
1
1
1
3
20
8
10
30
19
13
12
16
7
5
3
18
1
1
1
6
564

100.0
91.3
99.1
100.0
100.0
100.0
100.0
100.0
100.0
98.8
100.0
94.9
94.0
93.2
95.3
98.3
100.0
83.6
100.0
89.7
99.9
100.0
100.0
100.0
100.0
96.9

(Note 2)
313,4291,020,694
297,704
145,286(Note 2)
(Note 2)
(Note 2)
129,222479,832
127,810147,040
141,758
76,662
183,731
98,672
98,76592,75480,294
128,462
471,730(Note 2)
(Note 2)
(Note 2)
135,829
13,278,813(Note 2)
2.4
7.7
2.2
1.1
(Note 2)
(Note 2)
(Note 2)
1.0
3.6
1.0
1.1
1.1
0.6
1.4
0.7
0.7
0.7
0.6
1.0
3.6
(Note 2)
(Note 2)
(Note 2)
1.0
100.0

1
34
10
14
4
1
1
1
3
29
8
10
33
20
13
12
16
8
5
3
16
1
1
1
6
610

100.0
95.4
94.2
100.0
100.0
100.0
100.0
100.0
100.0
98.7
100.0
94.2
97.7
95.3
95.3
98.3
100.0
88.8
87.3
89.7
94.8
100.0
100.0
100.0
100.0
96.5

(Note 2)
322,397
1,007,396
302,248
268,678(Note 2)
(Note 2)
(Note 2)
129,361
487,108
127,691
163,746
145,963
85,023179,001
112,214
99,82897,804
79,215
130,769
442,255(Note 2)
(Note 2)
(Note 2)
141,549
13,591,659(Note 2)
2.4
7.4
2.2
2.0
(Note 2)
(Note 2)
(Note 2)
1.0
3.6
0.9
1.2
1.1
0.6
1.3
0.8
0.7
0.7
0.6
1.0
3.3
(Note 2)
(Note 2)
(Note 2)1.0
100.0

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., Rise Arena Bldg. and Kawasaki Dice
Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, thetenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., Rise Arena Bldg. and Kawasaki Dice Bldg. 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) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been entered under (3) Itemized Portfolio Assets above.
There is no incorporation of main specific assets which are main investment targets of JPR other than those listed under (3) above asof the end of the 24th fiscal period.

4545

III. Asset Management Report

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for currently planned renovations, etc. for JPR-owned real estate and entrusted
real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses include portions that areclassified as expenses in accounting.
Planned (millions of yen)
Total
Value

Payment
duringthe 24th
Fiscal Period

AmountAlready
PaidMar. 2014 ~ Jun. 2014

152

-

-

3rd phase of replacement of substation
facilities

Oct. 2011 ~ Mar. 2014

104

-

-

Shinjuku Ward,Tokyo

4th phase of renewal of passenger
elevators

Mar. 2012 ~ Apr. 2014

90

15

41

Shinjuku Center
Bldg.

Shinjuku Ward,Tokyo

4th phase of replacement of fireproof
materials in passenger elevator shaftsMar. 2012~ Jan. 2014

73

-

28

Housing Design
Center Kobe

Kobe City, Hyogo

Replacement of automated fire alarm
receivers

Mar. 2014 ~ Jun. 2014

70

-

-

Tokyo Tatemono
Honmachi Bldg.

Osaka City, Osaka

Replacement of B1 and 4th – 9th floor
drainage pipes

Mar. 2014 ~ Apr. 2014

31

-

-

Property Name

Location

PurposeSchedule

Sompo Japan
Wakayama Bldg.

Wakayama City,
Wakayama

1st phase of replacement of air
conditioning units

Shinjuku Center
Bldg.

Shinjuku Ward,Tokyo

Shinjuku Center
Bldg.

(2) Capital Expenditures during the 24th Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 24th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting
new tenants. In addition, aside from these constructions, JPR conducted construction of 337 million yen (Note), which wasappropriated as expenditures for repair and maintenance.
Property Name

Location

Purpose

PeriodConstruction
Expenses(millions of yen)

MS Shibaura Bldg.

Minato Ward, Tokyo

Replacement of toilets andcommon-use corridors

Jan. 2013 ~ Aug. 2013129

Tokyo Tatemono Kyobashi
Bldg.

Chuo Ward, Tokyo

Renovation and shift tooffice spaces

Aug. 2013 ~ Sep. 201388

JPR Hakata-chuo Bldg.

Fukuoka City, Fukuoka

Replacement of 1st – 7th
floor air conditioning units

May 2013 ~ Sep. 201387

JPR Dojima Bldg.

Osaka City, Osaka

2nd phase of replacement of
air conditioning units

Jul. 2013 ~ Nov. 2013

62

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

Renovation of 1st – 3rd floor
common-use areas

Sep. 2013 ~ Oct. 201353

MS Shibaura Bldg.

Minato Ward, Tokyo

Additional installment of
humidifier units

Oct. 2013 ~ Nov. 201352

JPR Harajuku Bldg.

Shibuya Ward, Tokyo

Replacement of exterior
walls

Oct. 2013 ~ Dec. 201334

Repair of common areas, installation of office automation
floors, replacement of air conditioning units, etc.

336

Other Properties

Total

845

(Note) Expenditures for repair and maintenance included 7 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

4646

Japan Prime Realty Investment Corporation(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) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs andmaintenance plans for individual properties.
(Millions of yen)

Operation Period

20th Fiscal Period(Jul. 1, 2011 Dec. 31, 2011)

21st Fiscal Period(Jan. 1, 2012 Jun. 30, 2012)

22nd Fiscal Period(Jul. 1, 2012 Dec. 31, 2012)

23rd Fiscal Period(Jan. 1, 2013 Jun. 30, 2013)

24th Fiscal Period(Jul. 1, 2013 Dec. 31, 2013)

Balance of deposits at
beginning of current
period

767

746

799

810

816

Deposits during theperiod

389

410

376

376

565

Amounts used from
deposits during the period

410

357

365

370

576

Deposits carried forward
to the next period

746

799

810

816

805

4747

III. Asset Management Report

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
23rd Fiscal Period(Jan. 1, 2013 - Jun. 30, 2013)

Item(a) Asset Management Fees (Note)

24th Fiscal Period(Jul. 1, 2013 - Dec. 31, 2013)
468,829473,242

Fixed compensation

75,00075,000

Incentive-based compensation 1

239,945244,980

Incentive-based compensation 2

153,883

153,262(b) Administrative Service and Custodian Fees

78,883

81,486(c) Directors' Fee

6,600

6,600

(d) Trust Fees

36,75235,167(e) Other Expenses
Total

94,25091,868685,315

688,364(Note) Aside from the amounts of the asset management fees entered above, a total of 16,650 thousand yen for the 23rd fiscal period and a total of 15,200 thousand yen forthe 24th fiscal period have been paid for asset management of the acquired properties and have been included in the book value of each property.

(2) Status of Loans Payable
As of December 31, 2013 JPR has the following loans payable.

4848

Loans

PayableThe Norinchukin Bank

Dec. 5, 2013

The Hachijuni Bank, Ltd.

Sep. 24, 2013

-

1,000

0.479 Sep. 24, 2014

Jun. 26, 2009
May 28, 2010
Feb. 4, 2011
Mizuho Bank, Ltd.
Mar. 30, 2012
Dec. 5, 2012
Nov. 27, 2013
Jun. 26, 2009
May 28, 2010
Mar. 25, 2011
Bank of Tokyo-Mitsubishi Aug. 8, 2012
UFJ, Ltd.
Aug. 8, 2012
Sep. 5, 2012
Dec. 5, 2012
Nov. 27, 2013
Jun. 29, 2009
Sumitomo Mitsui Banking Mar. 30, 2012
Corporation
Dec. 5, 2012
Jun. 27, 2013
Mar. 30, 2010
Jul. 3, 2012
Aug. 8, 2012
Aozora Bank, Ltd.
Aug. 27, 2012
Aug. 30, 2012
Sep. 30, 2013
Sep. 24, 2010
Shinsei Bank, Ltd.
Apr. 5, 2012
Sep. 24, 2013
Mar. 30, 2012
Mizuho Trust & Banking
Co., Ltd.
Feb. 4, 2013
Aug. 29, 2011
Mitsubishi UFJ Trust andAug. 29, 2011
Banking Corporation
Jun. 27, 2012
Jun. 26, 2009
Development Bank ofJun. 27, 2013
Japan Inc.
Dec. 5, 2013
Sep. 24, 2010
Jul. 7, 2011
The Bank of Fukuoka, Ltd.
Apr. 11, 2012
Sep. 24, 2013
Apr. 11, 2012
Sompo Japan InsuranceInc.
Jun. 27, 2012

5,200
3,000
5,000
7,000
2,000
4,336
3,000
5,000
1,000
1,000
3,000
1,000
2,600
6,400
1,000
3,000
1,000
900
2,000
2,000
2,000
2,000
5,000
4,000
3,000
5,000
1,000
1,000
3,200
820
1,000
2,000
2,000
2,000
2,000

2,000
5,100
5,000
7,000
2,000
3,000
4,253
5,000
1,000
1,000
3,000
1,000
3,000
2,550
6,400
1,000
3,000
900
2,000
2,000
2,000
1,000
5,000
2,000
4,000
3,000
5,000
1,000
1,000
3,100
820
2,000
2,000
2,000
1,000
2,000
2,000

2.449
1.279
1.414
1.093
1.027
0.970
2.390
1.279
1.198
1.178
0.948
0.919
1.027
0.970
2.440
1.093
1.027
1.265
1.322
0.994
1.178
0.985
1.146
1.069
1.070
1.397
1.076
1.093
1.076
1.184
0.924
0.843
3.190
1.449
1.188
1.070
1.170
0.902
0.911
0.981
0.874

LenderTotal

Long-Term Loans Payable

Short-Term

Category

Balance as of
AverageDec. 31,
Interest Rate(%)
2013
(Note 1)(millions of(Note 2)
yen)
1,000
0.398
-

Drawdown
Date

Balance as ofJul. 1, 2013
(millions ofyen)

Repayment
Date

Repayment
MethodUse

Remarks

Dec. 5, 2014

Principal
lump sum
repayment
on maturity(Note 3)

Unguaranteed/

Jun. 27, 2014
Nov. 27, 2013
Feb. 4, 2016
Mar. 30, 2017
Dec. 5, 2019Nov. 27, 2020
Jun. 27, 2014
Nov. 27, 2013
Mar. 25, 2016
Aug. 8, 2019
Aug. 8, 2017
Sep. 5, 2017
Dec. 5, 2019Nov. 27, 2020
Jun. 27, 2014
Mar. 30, 2017
Dec. 5, 2019
Jun. 26, 2020
Sep. 30, 2013
Jul. 3, 2017
Aug. 8, 2019
Aug. 25, 2017
Aug. 30, 2018
Sep. 24, 2020
Sep. 24, 2013
Apr. 5, 2019
Sep. 24, 2020
Mar. 30, 2017
Feb. 4, 2020
Aug. 29, 2017
Aug. 31, 2015
Jun. 26, 2015
Jun. 27, 2019
Jun. 25, 2021
Dec. 3, 2021
Sep. 24, 2013
Jul. 7, 2016
Oct. 9, 2015
Sep. 24, 2019
Oct. 11, 2016
Dec. 25, 2015

Unsecured/
Non-Subordinated(Note 4)
Principal
lump sum
repayment
on maturity(Note 5)
Principal
lump sum
repayment
on maturity(Note 6)

Unsecured/(Note 3)
Principal
lump sum
repayment
on maturity(Note 7)
Principal
lump sum
repayment
on maturity

Unguaranteed/
Non-SubordinatedAs of December 31, 2013 JPR has the following loans payable.

Short-Term

Category

Loans

PayableCategory

LenderDrawdown
Date

The Norinchukin Bank
Lender
The Hachijuni Bank, Ltd.

Dec.
5, 2013
Drawdown
Date
Sep. 24, 2013

Long-Term Loans Payable

Total
Meiji Yasuda
Life
Insurance Company

Jun. 26,
21, 2009
2011
Jun.
May
May 28,28, 2010
2010
Feb.
ORIX Bank
Corporation
Feb. 4,4, 20112013
Mizuho
Bank,
Ltd.
Mar.
Nov. 30,
27, 2012
2013
Dec.
Shinkin Central Bank
Dec. 5,
5, 20122013
Nov. 27, 2013
The Shinkumi Federation
Feb.26,4, 2013
Jun.
2009
Bank
May
Dec. 28,
26, 2010
2006
Mar.
25, 2010
2011
Sep. 24,
Taiyo Life InsuranceBankof Tokyo-Mitsubishi Aug.
Company
8, 20132012
Jun. 4,
UFJ, Ltd.
Aug.27,
8, 2012
Dec.
2013
Sep. 24,
5, 2012
Sep.
2010
Dec.11,
5, 2012The Chugoku Bank, Ltd.
Apr.
2012
Nov.
27, 2013
Sep. 24,
The Nishi-Nippon City Bank,
Jun. 29,May
27, 2009
2011
Ltd.
Sumitomo
Mitsui Banking Mar. 30, 2012
Dec.
27,
2006
Sumitomo Life Insurance
Corporation
Dec. 5, 2012
Company
Jun.27,4, 2008
Jun.
2013
Zenkyoren (National
Mar. 30, 2010
Mutual Insurance
Jul. 3,
Mar.
26,20122008
Federation of Agricultural
Aug. 8, 2012
AozoraBank,
Ltd.
Cooperatives)
Aug. 27, 2012
Dec. 26,
Aug.
30, 2006
2012
Daido Life Insurance
Feb.30,5, 2008
Sep.
2013
Company
Dec.
27,
2013
Sep. 24, 2010
Resona Bank,
Bank, Ltd.
LimitedMar.
2012
Shinsei
Apr. 30,
5, 2012The Iyo Bank, Ltd.
Apr.
11, 2013
2012
Sep. 24,
Tokio Marine& BankingNichidoMar.
MizuhoTrust &
Dec. 30,
27, 2012
2013
Fire InsuranceCo., Ltd.
Co.,
Ltd.
Feb. 4, 2013
The Tokyo Tomin Bank,
Aug.
2011
Mar. 29,30, 2012
Mitsubishi
UFJ9)Trust andLimited (NoteAug. 29, 2011
Banking Corporation
Sep. 24, 2010
Jun. 27, 2012
The Hachijuni Bank, Ltd.
Apr. 11, 2012
Jun. 26, 2009
The Bank of Yokohama,Development
Bank ofMar.
30, 2013
2012
Jun. 27,
Ltd. (NoteJapan
Inc. 9)Dec. 5, 2013
The Minato Bank, Ltd.
Mar.
30, 2010
2012
Sep. 24,(Note 9)Jul. 7, 2011
The
Yamaguchi
Bank,
Ltd.
The Bank of Fukuoka, Ltd. Mar. 30, 2012
Apr. 11, 2012
(Note 9)Sep. 24, 2013
The Chiba Kogyo Bank,Mar.
30, 2012
2012
Apr. 11,
Sompo
Japan
Ltd. (Note9) Insurance
Inc.
Jun.
27,
2012
Total

Japan Prime Realty Investment Corporation

Balance as of
Average
Balance as ofDec. 31,
Interest Rate
Jul. 1, 2013(%)
2013
(millions of(Note 1)(millions ofyen)
Balance(Note 2)Averageyen)as ofBalance as of
Dec.
31,
Rate
1,000 Interest0.398
Jul. 1, 2013(%)
2013(millions of
1,000(Note0.479
1)- (millionsofyen)(Note 2)
yen)
2,000
3,802
3,736
1.800
5,200
5,100
2.449
3,000
-1.279
2,000
1.281
5,000
5,000
1.414
1,000
1,000
0.786
7,0007,000
1.093
2,000
0.762
2,0002,000
1.027
3,000
0.689
3,000
0.970
3,000
3,000
0.786
4,336
4,253
2.390
3,000
1.279
1,000
1.858
5,000
5,000
1.198
1,000
1,000
1.275
1,000
1,000
1.178
0.949
1,0001,000
0.948
1.011
3,000
3,0000.919
1,000
1.070
1,000
1,000
1.027
2,000
2,000
0.902
3,000
0.970
1,000
0.758
2,600
2,550
2.440
3,000
3,000
1.149
6,400
6,400
1.093
2,000
1.858
1,000
1,000
1.027
2,000
2,000
2.257
3,000
3,000
1.265
1,000
1.322
900
900
0.994
2,000
2,000
1.725
2,000
2,000
1.178
2,000
2,000
0.985
1,000
1.858
2,000
2,0001.146
1,0001,000
1.666
1,000
1.069
1,0000.710
2,0001.070
2,000
2,000
1.093
5,000
5,000
1.397
1,0001,000
0.902
2,000
1.076
4,0004,000
1.093
1,000
0.710
3,000
3,000
1.076
5,000
5,000
1.184
1,000
1,000
0.690
1,000
1,000
0.924
1,000
1.070
1,000
1,000
0.843
1,000
1,000
0.902
3,200
3,100
3.190
1,000
1,000
0.690
820
820
1.449
2,000
1.188
800
8000.690
1,000
1.070
2,000
2,000
1.170
500
500
0.690
2,000
2,000
0.902
1,000
0.911
100
100
0.690
2,000
2,000
0.981
2,000
2,000
0.874
130,658
133,259

Repayment
Date

Repayment
MethodUse

Principal
Dec.
5, 2014 Repayment
Repayment
lump sum
Use(Note 3)
Method
Sep.Date
24, 2014 repayment
on maturity
Jun. 27,
21, 2014
2018
Jun.
Nov. 27,Nov.
27, 2013
2013
Feb.
Feb. 4,
5, 20162018
Mar.
30, 20192017
May 27,
Dec.
Dec. 5,
5, 20192018
Nov. 27, 2020Feb.27,
5, 2018
Jun.
2014
Nov.
Dec. 27, 2013
Mar.
25, 2015
2016
Sep. 24,
Aug.
8, 2018
2019
Jun. 4,Aug.25,8, 2017
Dec.
2020
Sep. 24,
5, 2017
Sep.
2013
Dec.
5, 20152019
Oct. 9,Nov.
27, 2018
2020
Sep. 25,
Jun. 27,May
27, 2014
2016
Mar. 30, 2017
Dec.
2013
Dec. 27,
5, 2019
Jun.26,4, 2015
Jun.
2020
Sep. 30, 2013
Jul. 3,
Mar.
26,2017
2015
Aug. 8, 2019
Aug. 25, 2017
Dec. 27,Aug.
30, 2013
2018
Feb.24,
5, 2015
Sep.
2020
Dec.
27,
2018
Sep. 24, 2013
Mar.
2017
Apr. 30,
5, 2019
Oct.24,
9, 2015
Sep.
2020
Mar.
Dec. 30,
27, 2017
2018
Feb. 4, 2020
Aug.
29, 2015
2017
Sep. 30,
Aug. 31, 2015
Sep. 24, 2013
Jun. 26, 2015
Oct. 9, 2015
Jun. 27, 2019Sep.
30, 2021
2015
Jun. 25,
Dec. 3, 2021
30, 2013
2015
Sep. 24,
Jul. 7, 2016
Sep.
2015
Oct. 30,
9, 2015
Sep. 24, 2019
Sep. 11,30, 2016
2015
Oct.
Dec. 25, 2015

Remarks

Unsecured/

Remarks

Unguaranteed/
Non-Subordinated(Note 4)8)
(NotePrincipal
lump sum
repayment
on maturity(Note 5)
Principal
lump sum
repayment
on maturity(Note 6)

Principal
Unsecured/
Unsecured/
lump sum (Note 3) Unguaranteed/
Unguaranteed/
repayment (Note 3) Non-SubordinatedPrincipal
onmaturity
Non-Subordinatedlump sum
repayment
on maturity(Note 7)
Principal
lump sum
repayment
on maturity(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable, except those in a syndicated loan (Note 9).
48(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 5,100 million yen
will be made on maturity date June 27, 2014.
(Note 5) The loans payable are subject to repayment of 83 million yen on December 27, 2009 and hereafter every 6 months. In addition, repayment of 4,253 million yen
will be made on maturity date June 27, 2014.
(Note 6) The loans payable are subject to repayment of 50 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 2,550 million yen
will be made on maturity date June 27, 2014.
(Note 7) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million yen
will be made on maturity date June 27, 2019.
(Note 8) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and hereafter every 6 months. In addition, repayment of 3,208 million yen will bemade on maturity date June 21, 2018.
(Note 9) The loans are with floating interest rates.

4949

III. Asset Management Report(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of December 31, 2013 are as follows.
Balance as of
Balance as ofJul. 1, 2013
Dec. 31, 2013
(millions of yen) (millions of yen)

CouponRate(%)

Maturity Date

5,000

2.32

Feb. 12, 2014

5,000

5,000

2.00

Nov. 4, 2014

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14, 2026

Ninth Series ofInvestment
Corporation Bonds

Jul. 23, 2007

6,000

6,000

2.10

Jul. 23, 2014

Eleventh Series ofInvestment
Corporation Bonds

Mar. 12, 2010

6,000

6,000

1.68

Mar. 12, 2015

Twelfth Series ofInvestment
Corporation Bonds

May 21, 2010

7,000

7,000

1.27

May 21, 2015

Thirteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

7,000

7,000

0.95

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.34

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

5,000

5,000

0.68

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.03

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds

May 31, 2013

5,000

5,000

0.65

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds

May 31, 2013

2,000

2,000

1.46

May 31, 2023

56,50056,500Name

Issue Date

Third Series ofInvestment
Corporation Bonds

Feb. 12, 2004

5,000

Sixth Series ofInvestment
Corporation Bonds

Nov. 4, 2004

Seventh Series ofInvestment
Corporation Bonds

Total

Redemption

Use

Remarks

Purchase ofproperties andrepaymentof loans(Note 1)

(Note 2)

Repayment ofloans

Bulletrepayment

Purchase ofproperties
Redemption of
investment
corporation
bonds andrepayment ofloans(Note 3)

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

5050

Japan Prime Realty Investment Corporation

6. Acquisitions and Sales during the 24th Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Acquisition
Type of Assets

Real Estate Name

Acquisition Date

Sale

Acquisition
Sale Price
Price
(A)
(thousands Sale Date (thousandsof yen)of yen)(Note)(Note)

Difference
Sale
Sale Profit
Book Value(C)
Expensesand Loss(B)(A) – (B)(D)(C) – (D)(thousands(thousands (thousands (thousands ofof yen)of yen)of yen)yen)

Beneficiary
Scienceinterest in real
December 6, 2013
Plaza-Yonbancho Plaza
estate2,660,000

-

-

-

-

-

-

Beneficiary
Shibadaimon Centerinterest in real
Building
estate3,420,000

-

-

-

-

-

-

6,080,000

-

-

-

-

-

-

December 6, 2013

Total

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

(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 24th fiscal period.

(3) Survey on Values of Specified Assets, etc.
Real EstateAppraisal Value(Note 2)(thousands ofyen)

Acquisition
or SaleType ofAssetsReal Estate
Name

Transaction Date

Acquisition Priceor Sale Price(Note 1)(thousands of yen)

Acquisition

Beneficiaryinterest inreal estate

Science
Plaza-Yonba
ncho Plaza

December 6, 2013

2,660,000

2,720,000

Acquisition

Beneficiaryinterest inreal estate

Shibadaimon
CenterBuilding

December 6, 2013

3,420,000

3,590,000

Real EstateAppraiser

Japan Real Estate
InstituteJapan Real Estate
Institute

Appraisal Date

November 1, 2013

November 1, 2013

(Note 1)

Values of "acquisition price" or "sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate(Note 2)

The appraisals in the table above were conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Realtransaction brokerage fees) required for acquisition or sale of the relevant real estate.
Estate Subject to Securitization.”

5151

III. Asset Management Report(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status
No transaction of specified assets or other deals with interested parties and major shareholders were conducted during the 24th
fiscal period.
2) Value of Fee Expenses(Thousands of yen)

Category

Total Paid FeesManagement Fees (Note 2)(A)

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party

235,919

Paid Amount (B)Ratio to Total
Amount(B/A))

Tokyo Tatemono Co., Ltd.

207,946

88.1%

Yasuda Real Estate Co., Ltd.

7,122

3.0%

Taisei-Yuraku Real Estate Co., Ltd.

3,279

1.4%

Tokyo Tatemono Co., Ltd.

419,81280.5%

Yasuda Real Estate Co., Ltd.

24,168

4.6%

Outsourcing Fees

521,692

Tenant Brokerage Fees

51,271

Tokyo Tatemono Co., Ltd.

33,27964.9%Advertising Cost of the Company

5,449

E-State Online Co., Ltd.

110

2.0%

(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 the Act on Investment Trusts and Investment Corporations and article 26-27
of the regulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan and the major
shareholders of the asset management company defined in Article 29-4-2 of the Financial Instruments and Exchange Act.
(Note 2) The management fees indicated in the above table include construction management fees (total of 18,530 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or
major shareholders during the 24th fiscal period.
Tokyo Tatemono Co., Ltd.

458,615 thousand yen

Yasuda Real Estate Co., Ltd.

17,408 thousand yen

Tokyo Real Estate Management Co., Ltd.

518,270 thousand yen

Shinjuku Center Building Management Co., Ltd.

39,581 thousand yen

Taisei-Yuraku Real Estate Co., Ltd.

315 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 any of the class
1 financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

5252

Japan Prime Realty Investment Corporation

7. Overview of Accounting(1) Assets, Liabilities, Principal, and Profits and Loss
Please refer to the Balance Sheets, Statements of Income and Retained Earnings, Statements of Unitholders' Equity and Notes toFinancial Statements as well as Distribution Information on later pages of this report.

(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.

5353

III. Asset Management Report

8. Overview of Self-Managed Investment Trust Beneficiary Certificates(1) Acquisition
Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

-

40

January 22, 2002 (Note)

60

-

100

Accumulated Total

100

-

100

(Note) The acquisition was due to the investment unit split (2.5 units for one existing unit).

(2) Units Held
Number of Units Held at End of
PeriodRatio to Total Units Issued
and Outstanding (%)

15th Fiscal Period(Jan. 1, 2009 – Jun. 30, 2009)

100

20

0.0

16th Fiscal Period(Jul. 1, 2009 – Dec. 31, 2009)

100

20

0.0

17th Fiscal Period(Jan. 1, 2010 – Jun. 30, 2010)

100

20

0.0

18th Fiscal Period(Jul. 1, 2010 – Dec. 31, 2010)

100

20

0.0

19th Fiscal Period(Jan. 1, 2011 – Jun. 30, 2011)

100

20

0.0

20th Fiscal Period(Jul. 1, 2011 – Dec. 31, 2011)

100

20

0.0

21st Fiscal Period(Jan. 1, 2012 – Jun. 30, 2012)

100

20

0.0

22nd Fiscal Period(Jul. 1, 2012 – Dec. 31, 2012)

100

20

0.0

23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

100

20

0.0

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)

100

20

0.0

(Note) Total investment at end of period represents the acquisition price.

5454

Total Investment at End of
Period (Note)(millions of yen)Japan Prime Realty Investment Corporation

9. Other(1) Notice1) General Meeting of Unitholders
The Ninth General Meeting of Unitholders of JPR was held on September 11, 2013.
Items approved at the General Meeting of Unitholders are summarized below.
AgendaPartial amendments
to the Articles ofIncorporation

Summary
Amendments were made to the following items of the Articles of Incorporation.
(1) In response to the revisions to the “Act on Investment Trusts and Investment Corporations” (the Investment Trusts Act) passed by
the Diet, the following additions and corrections were made:1) New provisions were added that allow JPR to acquire its investment units with compensation based on agreement with its
unitholders.
2) In order to provide that the convocation of the general meeting of unitholders is on a certain date and thereafter without delay,
corrections were made to the necessary terminology to stipulate that the convocation of the general meeting of unitholders of
JPR shall be on August 20, 2015 and onwards without delay and subsequent convocation of the meeting will be on August 20
and onwards every two years without delay.
3) With regard to the new provisions and corrections above, supplementary provisions were newly established to stipulate that they
will be effective upon the date of enforcement of the revisions to the Investment Trusts Act with regard to such provisions andcorrections. In addition, new provisions were established to stipulate that, when separate provisions become necessary in the
Articles of Incorporation regarding the new provisions and corrections above, provisions of relevant articles shall be replaced inaccordance with the provisions of the Investment Trusts Act after the said revisions, the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations and the Ordinance for Enforcement of the Act on Investment Trusts andInvestment Corporations.
(2) New provisions were established concerning the record date for designating the unitholders who are able to exercise their rights at
the general meeting of unitholders to be held within three months from the end of each fiscal period.
(3) With regard to cash distributions, corrections were made to the necessary terminology in response to the partial revisions made to
the rules of The Investment Trusts Association, Japan.
(4) With regard to the calculation of the Incentive Fee 2 of the asset management fee JPR pays to the asset management company,
corrections were made to the necessary terminology to change the basis of calculating the fee to income before income taxes forthe purpose of clarity and simplification.
(5) With regard to basic asset management policies and investment attitude, corrections were made to the necessary terminology toclarify the handling of real properties having multiple purposes.
(6) Other than the above, necessary provisions were established, expressions were changed and clarified, and other corrections weremade to the terminology.

Appointment of one
Executive Officer

Hirohito Kaneko was appointed as Executive Officer.

Appointment of one
Substitute Executive
Officer

Satoshi Okubo was appointed as Substitute Executive Officer.

Appointment of two
Supervising Officers

Sosuke Yasuda and Masato Denawa were appointed as Supervising Officers.

Appointment of one
SubstituteSupervising Officer

Masaaki Sugiyama was appointed as Substitute Supervising Officer.

2) Board of Directors of JPR
Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting inthe 24th fiscal period include the following:
Date of Board of
Directors
Meeting

Approved Item

August 14, 2013

Conclusion of memorandum
concerning amendments to the asset
management consignment agreement

Overview
Reviews were made to necessary articles of the asset management consignment agreement,
subject to the approval of the proposed amendments to the Articles of Incorporation at theNinth General Meeting of Unitholders of JPR held on September 11, 2013.

(2) Other
Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis asset management report.

5555

IV. Financial Statements(1) Balance Sheets(Thousands of Yen)
End of 23rd Fiscal Period

End of 24th Fiscal Period(Jun. 30, 2013)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net*1㻌

10,852,097
11,568,818
321,458
145,408
8,023

9,781,000
11,856,805
271,134
189,193
41,342

22,895,806

22,139,475

56,930,266(8,971,882)

57,160,036(9,805,723)

47,958,383*1

47,354,313

Buildings in trust
Accumulated depreciation

80,339,792(22,438,604)

82,586,390(23,401,876)

Buildings in trust, net

57,901,188

59,184,514

44,858(10,165)

44,971(11,469)

Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation

34,69233,501

113,070(53,337)

116,410(57,188)

Structures in trust, net

59,73359,222

Machinery and equipment
Accumulated depreciation

713,742(293,404)

725,203(314,764)

Machinery and equipment, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation*1

420,338*1

410,438

1,567,896(1,039,658)

1,576,395(1,078,490)

528,237

497,905

44,529(24,556)

46,995(26,479)

Tools, furniture and fixtures, net

19,972

20,516

Tools, furniture and fixtures in trust
Accumulated depreciation

127,009(85,579)

143,976(90,068)

Tools, furniture and fixtures in trust, net
LandLand in trust
Construction in progress
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

5656(Dec. 31, 2013)㻌㻌

41,42953,907*1 111,638,476
162,616,535
66,3295,319*1 111,638,476
167,095,445
80,888-381,290,637

386,429,131

4,794,109
4,763

4,794,109
4,166

4,798,872

4,798,276

49,520475,065

49,520379,617524,585

429,137

386,614,096

391,656,545

205,794

178,453

205,794

178,453

409,715,697

413,974,474

Japan Prime Realty Investment Corporation(Thousands of Yen)
End of 23rd Fiscal Period

End of 24th Fiscal Period(Jun. 30, 2013)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust(Dec. 31, 2013)㻌㻌

*1

Total noncurrent liabilities㻌

1,824,580
30,468,000
5,000,000
694,658
208,428605
191,538
2,515,043

1,698,960
2,000,000
12,235,000
16,000,000
690,523
214,546605
174,150
2,446,217

40,902,854

35,460,003

51,500,000
100,190,000
7,959,356
12,046,833

40,500,000
121,024,000
7,553,159
12,342,195*1

171,696,190

181,419,354

212,599,044

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus㻌 㻌 Voluntary reserve
Reserve for reduction entry

216,879,357
㻌㻌

192,044,238

192,044,238

73,94673,946

Total voluntary reserve

73,94673,946

Unappropriated retained earnings(undisposed losses)

4,998,468

4,976,931

Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*3

5,072,414

5,050,878

197,116,653

197,095,116

197,116,653
409,715,697*3

197,095,116
413,974,474

5757

IV. Financial Statements(2) Statements of Income and Retained Earnings(Thousands of Yen)
23rd Fiscal Period

24th Fiscal Period(Jan. 1, 2013 –(Jul. 1, 2013 –Jun. 30, 2013)

Dec. 31, 2013)

Operating revenue㻌㻌 Rent revenue-real estate*1 13,278,813

Total operating revenue

13,278,813

㻌Operating expenses
㻌 Expenses related to rent business㻌 Asset management fee
㻌 Administrative service and asset custody fees
㻌 Directors' compensation
㻌 Trust fees㻌 Other operating expenses
㻌

Total operating expenses

Operating income
Non-operating income
㻌 Interest income㻌 Income on settlement of management association accounts
㻌 Other㻌

Total non-operating income

Non-operating expenses
㻌 Interest expenses
㻌 Borrowing expenses
㻌 Interest expenses on investment corporation bonds
㻌 Amortization of investment corporation bond issuance costs
㻌 Other㻌

Total non-operating expenses

Ordinary income
Extraordinary income
Subsidy income
Total extraordinary income
Income before income taxes
Income taxes-current
㻌 Total income taxes㻌㻌
*1 13,591,659
13,591,659

㻌*16,208,456
468,82978,8836,600
36,752
94,250*1

6,893,772

㻌
6,534,916
473,242
81,4866,600
35,16791,8687,223,280

6,385,040

6,368,378
㻌

2,012
48,287
9,713
60,013

㻌
2,084
9,680
4,868
16,634

㻌
896,962
138,013
408,001
23,3563,346

㻌
887,736
129,716
438,203
27,341
2,134

1,469,680

1,485,133

4,975,373

4,899,879-

54,764-54,764

4,975,373

4,954,643

605

605

605

605

Net income

4,974,768

4,954,038

Retained earnings brought forward
Unappropriated retained earnings (undisposed losses)

23,6994,998,468

22,893
4,976,931

5858

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of Yen)㻌

23rd Fiscal Period

24th Fiscal Period㻌(Jan. 1, 2013 –Jun. 30, 2013)(Jul. 1, 2013 –Dec. 31, 2013)㻌Unitholders' equity
Unitholders' capital
Balance at beginning of current period

㻌

㻌

㻌

㻌
192,044,238

192,044,238

Changes of items during the period
Issuance of units
Total changes of items during the period
Balance at end of current period㻌--

192,044,238

192,044,238
㻌㻌

Surplus
Voluntary reserve
Balance at beginning of current period㻌73,946

Balance at end of current period

㻌
-

㻌
-

73,94673,946

Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period㻌73,946

Changes of items during the period
Total changes of items during the period

㻌
-

㻌

㻌

5,050,424

4,998,468

Changes of items during the period㻌㻌Dividends from surplus(5,026,725)(4,975,575)

Net income

4,974,768

4,954,038

Total changes of items during the period
Balance at end of current period(51,956)(21,536)

4,998,468

4,976,931

Total surplus
Balance at beginning of current period㻌㻌

5,124,371

5,072,414

Changes of items during the period
Total changes of items during the period
Balance at end of current period
Total unitholders' equity
Balance at the beginning of current period㻌㻌

(51,956)(21,536)

5,072,414

5,050,878
㻌㻌

197,168,609

197,116,653

Changes of items during the period
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period㻌㻌

(51,956)(21,536)

197,116,653

197,095,116
㻌㻌

197,168,609

197,116,653

Changes of items during the period
Total changes of items during the period
Balance at end of current period㻌㻌

(51,956)(21,536)

197,116,653

197,095,1165959

IV. Financial Statements(4) Statements of Cash Distributions

I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Retained earnings carried forward

Method for calculating distribution amount6060

23rd Fiscal Period(January 1, 2013 –June 30, 2013)
4,998,468,027 yen
4,975,575,000 yen(6,031 yen)

24th Fiscal Period(July 1, 2013 –December 31, 2013)
4,976,931,439 yen
4,954,950,000 yen(6,006 yen)

22,893,027 yen

21,981,439 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 4,975,575,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (825,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 4,954,950,000 yen,which is the largest integral multiple of thenumber of investment units issued andoutstanding (825,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of Yen)
23rd Fiscal Period

24th Fiscal Period(Jan. 1, 2013 –(Jul. 1, 2013 –Jun. 30, 2013)

Dec. 31, 2013)

Net cash provided by (used in) operating activities
㻌 Income before income taxes

4,975,373

㻌㻌
4,954,643

㻌Depreciation and amortization

1,884,122

1,869,541

㻌Amortization of investment corporation bond issuance costs

23,35627,341㻌Interest income(2,012)(2,084)

㻌Interest expenses

1,304,963

1,325,940

㻌Decrease (increase) in operating accounts receivable(92,129)

50,323㻌

Decrease (increase) in consumption taxes receivable259,150-㻌Decrease (increase) in prepaid expenses

57,973(43,784)

㻌

Increase (decrease) in operating accounts payable

437,933(61,827)

㻌

Increase (decrease) in accounts payable-other

39,369(7,844)

㻌

Increase (decrease) in accrued consumption taxes

127,344(17,388)

㻌

Increase (decrease) in advances received

54,041(68,825)

㻌

Other, net

21,79813,863

㻌

Subtotal

9,091,286

8,039,898

㻌Interest income received

㻌Interest expenses paid㻌Income taxes (paid) refund

124

(619)

㻌

Net cash provided by (used in) operating activities

7,785,438

6,721,541

Net cash provided by (used in) investing activities㻌 Purchase of property, plant and equipment(343,297)㻌(359,383)

㻌

Purchase of property, plant and equipment in trust(7,446,034)(6,712,299)

㻌

Repayments of tenant leasehold and security deposits(256,076)(667,534)㻌Proceeds from tenant leasehold and security deposits

506,908

189,216

㻌

Repayments of tenant leasehold and security deposits in trust(190,202)(248,327)

㻌Proceeds from tenant leasehold and security deposits in trust

842,206

666,105

㻌Net cash provided by (used in) investing activities(6,886,496)(7,132,223)

Net cash provided by (used in) financing activities
㻌 Increase in short-term loans payable㻌
7,000,000

㻌
2,000,000

2,012

2,084

(1,307,984)(1,319,821)

㻌㻌㻌Decrease in short-term loans payable(7,000,000)-

Proceeds from long-term loans payable

11,820,000

21,000,000

㻌

Repayment of long-term loans payable(12,219,000)(18,399,000)

㻌Proceeds from issuance of investment corporation bonds

6,947,523-

㻌Dividends paid

(5,025,496)(4,973,428)㻌Net cash provided by (used in) financing activities

1,523,026(372,428)

Net changes in cash and cash equivalents

2,421,968(783,110)

Cash and cash equivalents at beginning of current period

19,998,947

22,420,916

Cash and cash equivalents at end of current period*122,420,916*1

21,637,805

6161

IV. Financial Statements(6) Notes to Financial Statements(Basis of Presenting Financial Statements)
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its financial statements inaccordance with accounting principles generally accepted in Japan (Japanese GAAP), including provisions set forth in the Financial
Instruments and Exchange Act of Japan, the Act on Investment Trusts and Investment Corporations (ITA), the Companies Act and therelated regulations, which are different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR, which were prepared inaccordance with Japanese GAAP. In preparing the accompanying financial statements, certain reclassifications have been made to thefinancial statements issued domestically in order 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 is presented
herein as additional information.
JPR’s accounting periods end at the end of June and December.

(Significant Accounting Policies)
1.

Depreciation Method for
Property and Equipment

2. Accounting for Deferred Assets
3. Standards for Recording
Revenues and Expenses

4. Scope of Cash and Cash
Equivalents in the Statements ofCash Flows
5. Other Significant Items
Fundamental to Preparing the
Financial Statements



6262

(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:  Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
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 of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted to36,206 thousand yen and 2,709 thousand yen for the fiscal periods ended June 30, 2013 and December 31, 2013,
respectively.
Cash and cash equivalents in the Statements of Cash Flows include the following:(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuation andoriginal maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
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 property in trust are recorded in relevant accounts on thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)
End of 23rd Fiscal Period(as of June 30, 2013)


Buildings (net)
Machinery and equipment (net)
Land
Total

End of 24th Fiscal Period(as of December 31, 2013)
122,639

120,771

3,595

3,424

399,183

399,183

525,418

523,378

Secured liabilities are as follows:(Thousands of yen)
End of 23rd Fiscal Period(as of June 30, 2013)
Tenant leasehold and security deposits
Total

End of 24th Fiscal Period(as of December 31, 2013)15,536

15,536

15,536

15,536*2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.
(Thousands of yen)
End of 23rd Fiscal Period(as of June 30, 2013)

Credit limit
Outstanding debt at end of period
Unused commitment line at end of period

End of 24th Fiscal Period(as of December 31, 2013)
28,000,000

28,000,000--

28,000,000

28,000,000*3. Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 23rd Fiscal Period(as of June 30, 2013)

End of 24th Fiscal Period(as of December 31, 2013)
50,00050,0006363

IV. Financial Statements(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)
23rd Fiscal Period

24th Fiscal Period(January 1, 2013 June 30, 2013)(July 1, 2013 December 31, 2013)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents

8,922,614
1,439,000

9,015,753
1,469,500

Common charges

1,847,619

1,859,271

Parking revenues

230,708

245,758

Advertising expenses

21,67052,930

Antenna use fees

14,256

14,612

Other

34,00836,247

12,509,879

12,694,073

684,413

833,925

Subtotal
Other rental revenues
Incidental income
Time-based parking revenues

5,541

5,662

Cancellation charges

29,32328,406

Income equivalent to expenses for restoration
to original condition

29,73012,992Other miscellaneous income

19,925

16,599Subtotal

768,934

897,586

Total rent revenue-real estate

13,278,813

13,591,659

Outsourcing expenses

505,069

516,552

Utilities expenses

768,052

969,327

1,884,698

1,879,199

B. Expenses Related to Rent Business

Property and other taxes
Casualty insurance

26,66627,316

Repairs and maintenance244,149

330,109

Property management fees

213,735

217,389

Management association accounts

563,301

556,013

1,883,591

1,869,009

Depreciation
Other
Total expenses related to rent business
C. Profits(A-B)

119,191

169,998

6,208,456

6,534,916

7,070,356

7,056,743(Notes to Statements of Changes in Unitholders’ Equity)

23rd Fiscal Period(January 1, 2013 – June 30, 2013)

Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

6464

24th Fiscal Period(July 1, 2013 – December 31, 2013)

5,000,000 units

5,000,000 units

825,000 units

825,000 units

Japan Prime Realty Investment Corporation(Notes to Statements of Cash Flows)*1. Relationship between the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows and the Amounts of theCorresponding Accounts on the Balance Sheets(Thousands of yen)23rd Fiscal Period(January 1, 2013 – June 30, 2013)

24th Fiscal Period(July 1, 2013 – December 31, 2013)

Cash and deposits

10,852,097

9,781,000

Cash and deposits in trust

11,568,818

11,856,805

Cash and cash equivalents

22,420,916

21,637,805(Leases)
Future lease revenues under non-cancelable operating leases(Thousands of yen)End of 23rd Fiscal Period(as of June 30, 2013)

End of 24th Fiscal Period(as of December 31, 2013)

Due within one year

6,112,479

5,733,905

Due after one year

20,398,477

18,977,097

Total

26,510,957

24,711,002(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement ofshort-term funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to management for interest rate
fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit risks, but risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing acommitment line agreement with the main lending financial institutions, and also having statements of cash receipts anddisbursements prepared by the financial division.
(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values based on reasonablecalculations when there is no market price. Certain assumptions, etc. are used in calculating those values and there may be cases
where the values will vary when different assumptions, etc. are used.

6565

IV. Financial Statements

2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of June 30, 2013 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

10,852,097

10,852,097-(2)Cash and deposits in trust

11,568,818

11,568,818-(3)

Short-term loans payable

-

-

-

(4)

Current portion of long-term loans payable(30,468,000)(31,024,288)

556,288(5)

Current portion of investment corporation bonds(5,000,000)(5,105,525)

105,525(6)

Investment corporation bonds(51,500,000)(52,397,133)

897,133(7)

Long-term loans payable(100,190,000)(101,514,029)

1,324,029

The following are the carrying values and estimated fair values as of December 31, 2013 of financial instruments, and thedifference between these amounts. Please note that the following table does not include those for which discerning of estimatedfair value is recognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

9,781,000

9,781,000-(2)

Cash and deposits in trust

11,856,805

11,856,805-(3)

Short-term loans payable(2,000,000)(2,000,000)-(4)

Current portion of long-term loans payable(12,235,000)(12,370,436)

135,436(5)

Current portion of investment corporation bonds(16,000,000)(16,204,932)

204,932(6)

Investment corporation bonds(40,500,000)(41,537,700)

1,037,700(7)

Long-term loans payable(121,024,000)(122,963,250)

1,939,250(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thusstated at that book value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the book value and is thus stated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as
it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans
payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being
applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since
it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.



6666

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 23rd Fiscal Period(as of June 30, 2013)

Category

End of 24th Fiscal Period(as of December 31, 2013)

Tenant leasehold and security deposits

7,959,356

7,553,159

Tenant leasehold and security deposits in trust

12,046,833

12,342,195(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 23rd fiscal period (June 30, 2013)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

10,852,097

-

-

-

-

-

Cash and deposits in trust

11,568,818

-

-

-

-

-

Scheduled redemption of monetary claims to be due after the account closing date of the 24th fiscal period (December 31, 2013)

Due after Two
Years throughThree Years

Due after Five
Years(Thousands of yen)

Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Three Due after FourYears through Years throughFour Years
Five Years

Cash and deposits

9,781,000

-

-

-

-

-

Cash and deposits in trust

11,856,805

-

-

-

-

-

Due after Five
Years

(Note 5) Amount of repayment or redemption of investment corporation bonds and long-term loans payable scheduled to be due after the account closing date of the 23rd
fiscal period (June 30, 2013)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Investment corporation bonds

5,000,000

24,000,000-

7,000,000

10,000,000

10,500,000

Long-term loans payable

30,468,000

6,332,000

26,732,000

23,732,000

20,374,000

23,020,000Due after Three Due after FourYears through Years throughFour Years
Five Years

Due after Five
Years

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after theaccount closing date of the 24th fiscal period (December 31, 2013)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Short-term loans payable

2,000,000

-

-

-

-

-

Investment corporation bonds

16,000,000

13,000,000

7,000,000

5,000,000

7,000,000

8,500,000

Long-term loans payable

12,235,000

19,732,000

17,332,000

31,632,000

16,408,000

35,920,000Due after Three Due after FourYears through Years throughFour Years
Five Years

Due after Five
Years



(Securities)
23rd fiscal period (as of June 30, 2013)
Not applicable
24th fiscal period (as of December 31, 2013)
Not applicable(Derivative Transactions)23rd fiscal period (as of June 30, 2013)
Not applicable as JPR conducted no derivative transactions
24th fiscal period (as of December 31, 2013)
Not applicable as JPR conducted no derivative transactions

6767

IV. Financial Statements(Retirement Benefits)
23rd fiscal period (as of June 30, 2013)
Not applicable as JPR does not have any retirement benefit system
24th fiscal period (as of December 31, 2013)
Not applicable as JPR does not have any retirement benefit system(Tax Effect Accounting)
1. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting



23rd Fiscal Period(January 1, 2013 – June 30, 2013)

Effective statutory tax rate

36.59%

36.59%



(36.59%)(36.59%)

Other

0.01%

0.01%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

(Adjustment)
Deductible cash distributions

(Equity Method Income and Retained Earnings)
23rd fiscal period (January 1, 2013 – June 30, 2013)
Not applicable as JPR does not have any affiliated companies
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
23rd fiscal period (January 1, 2013 – June 30, 2013)
Not applicable
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
2. Subsidiaries
23rd fiscal period (January 1, 2013 – June 30, 2013)
Not applicable
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
3. Sister Companies
23rd fiscal period (January 1, 2013 – June 30, 2013)
Not applicable
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable
4. Directors and Major Individual Unitholders
23rd fiscal period (January 1, 2013 – June 30, 2013)
Not applicable
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable

6868

24th Fiscal Period(July 1, 2013 – December 31, 2013)

Japan Prime Realty Investment Corporation(Asset Retirement Obligations)23rd fiscal period (January 1, 2013 – June 30, 2013)
Not applicable
24th fiscal period (July 1, 2013 – December 31, 2013)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.
[Related Information]
23rd fiscal period (January 1, 2013 – June 30, 2013)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.


3. Information about Major Customers(Thousands of yen)
Customer Name

Operating Revenue

Y.K. Tokyo Prime Stage

Related Segment
1,439,000

Property rental business
24th fiscal period (July 1, 2013 – December 31, 2013)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenues on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the
Balance Sheets.
3. Information about Major Customers(Thousands of yen)
Customer Name
Y.K. Tokyo Prime Stage

Operating Revenue

Related Segment
1,469,500

Property rental business (Investment and Rental Properties)
JPR owns office properties (urban commercial facilities) and retail properties for leasing in Tokyo and other regions. The
following is the carrying value on the balance sheets, amount of increase (decrease) during the period and estimated fair value ofthese investment and rental properties.

6969

IV. Financial Statements
Carrying Value on the Balance Sheets

Balance at Beginning of Period

Amount of Increase (Decrease) during the PeriodBalance at End of Current Period(Thousands of yen)

23rd Fiscal Period(January 1, 2013 – June 30, 2013)

Estimated Fair Value at End of Period

24th Fiscal Period(July 1, 2013 – December 31, 2013)

380,518,842

386,086,796

5,567,954

5,138,428

386,086,796

391,225,225
376,995,000

365,214,000(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) during the periods for investment and rental properties, the amount of increase for the 23rd fiscal period is primarily
attributable to acquisition of Omiya Prime East (6,287,358 thousand yen) and Shinyokohama 2nd Center Building (additional ownership) (581,106 thousand yen),and the amount of increase for the 24th fiscal period is primarily attributable to acquisition of Science Plaza-Yonbancho Plaza (2,700,337 thousand yen) andShibadaimon Center Building (3,449,233 thousand yen).
(Note 3) The estimated fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 23rd and 24th fiscal periods for investment and rental properties are as presented in the “Notes toStatements of Income and Retained Earnings.”(Per Unit Information)


23rd Fiscal Period(January 1, 2013 – June 30, 2013)

Total net assets per unit
Net income per unit

24th Fiscal Period(July 1, 2013 – December 31, 2013)

238,929 yen

238,903 yen

6,030 yen

6,004 yen

(Note 1) 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 2) Net income per unit was calculated based on the following data:Net income (thousands of yen)

23rd Fiscal Period(January 1, 2013 – June 30, 2013)
4,974,768

Amounts not attributable to ordinary unitholders (thousands of yen)

24th Fiscal Period(July 1, 2013 – December 31, 2013)
4,954,038-

Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period-

4,974,768

4,954,038

825,000 units

825,000 units(Subsequent Events)
Issuance of unsecured investment corporation bonds
On January 28, 2014, JPR made the following decision to issue investment corporation bonds based on thecomprehensive resolution adopted at the Board of Directors’ meeting held on April 25, 2013. Payment for theinvestment corporation bonds was completed on February 5, 2014.

Name of the bonds

Japan Prime Realty Investment Corporation 19th Series of Unsecured Investment Corporation Bonds(with special pari passu conditions among specified investment corporation bonds)

Total issue amount

5 billion yen

Subscription date

January 28, 2014

Interest rate

1.11% per annum

Payment dateFebruary 5, 2014

Unsecured / unguaranteed

Purchase price

100 yen per 100 yen of the investment
corporation bonds

Collateral
Redemption method andredemption date

The total amount of the bonds will be redeemed on February 5, 2024. The bonds may be repurchased and cancelled at
any time on and after the day following the payment date, unless otherwise determined by the book-entry transfer agent.

Use of funds

Redemption of investment corporation bonds

7070

Japan Prime Realty Investment Corporation(7) Detailed Schedules
1) Schedule of securities
Not applicable2) Status of contract amounts, etc. and estimated fair value of derivative transactions and forward exchange transactions
Not applicable3) Schedule of assets related to real estate

Asset Type

Current Assets
Noncurrent Assets(Property, plantand equipment)
Buildings

Accumulated Depreciation
Increase
Decrease
Balance as of
Net Balance as of
Balance as ofDepreciation
during theduring theDecember 31, Or Accumulated
December 31,
July 1, 2013
during the
PeriodPeriod2013
2013
Amortization(thousands ofPeriod(thousands of (thousands of (thousands of(thousands of(thousands ofyen)(thousands of
yen)
yen)
yen)
yen)
yen)
yen)




























Remarks-

56,930,266

229,770-

57,160,036

9,805,723

833,841

47,354,313

44,858113-

44,971

11,4691,303

33,501

713,742

11,460-725,203

314,764

21,360410,438

44,5292,466-

46,99526,4791,922

20,516



111,638,476--

111,638,476--

111,638,476

66,32921,892

7,333

80,888--80,888



169,438,203

265,703

7,333

169,696,573

10,158,436

858,427

159,538,136

80,339,792

2,247,129

531

82,586,390

23,401,876

963,345

59,184,514

113,070

3,340-

116,41057,1883,850

59,222

1,567,896

8,498

-

1,576,395

1,078,490

38,831497,905

127,009

16,966-

143,976

90,068

4,488

53,907

Land in trust

162,616,535

4,478,909-

167,095,445--

167,095,445

Construction inprogress in trust

5,319

8,709

14,028---Subtotal

244,769,624

6,763,554

14,559251,518,618

24,627,623

1,010,516

226,890,995

Total

414,207,827

7,029,257

21,892421,215,191

34,786,060

1,868,944

386,429,131

Intangible Assets
Leasehold rights
Other

4,794,109
7,917

-

-

4,794,109
7,917

3,751

596

4,794,109
4,166

Total

4,802,027--

4,802,027

3,751

596

4,798,276

Structures
Machinery andequipment
Tools, furnitureand fixtures
Land
Construction inprogress
Subtotal(Beneficiary interests
in trust)
Buildings in trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures intrust

Propertyacquisitions- (Note 1) The “Increase during Current Period” is due to property acquisitions and construction works, etc.
(Note 2) The “Decrease during Current Period” in construction in progress and construction in progress in trust is due to the transfer to relevant accounts as a result ofconstruction completion. For buildings in trust, the decrease is due to asset retirement.

4) Schedule of other specified assets
Not applicable7171

IV. Financial Statements

5) Schedule of investment corporation bonds
Decreaseduring the
Period(thousands ofyen)

Balance as ofDec. 31, 2013
(thousands ofyen)

CouponRate(%)

Maturity Date

Name

Issue Date

Balance as ofJul. 1, 2013
(thousands ofyen)

Third Series ofInvestment Corporation
Bonds(Note 1)Feb. 12, 2004

5,000,000-

5,000,000

2.32

Feb. 12, 2014

Sixth Series ofInvestment Corporation
Bonds(Note 2)

Nov. 4, 2004

5,000,000-

5,000,000

2.00

Nov. 4, 2014

Seventh Series ofInvestment Corporation
Bonds(Note 3)

Dec. 14, 2006

4,500,000-

4,500,000

2.90

Dec. 14, 2026

Ninth Series ofInvestment
Corporation Bonds(Note 3)

Jul. 23, 2007

6,000,000-

6,000,000

2.10

Jul. 23, 2014

Eleventh Series ofInvestment Corporation
Bonds(Note 3)Mar. 12, 2010

6,000,000-

6,000,000

1.68

Mar. 12, 2015

Twelfth Series ofInvestment Corporation
Bonds(Note 3)

May 21, 2010

7,000,000-

7,000,000

1.27

May 21, 2015

Thirteenth Series ofInvestment Corporation
Bonds(Note 3)Oct. 25, 2011

7,000,000-

7,000,000

0.95

Oct. 25, 2016

Fourteenth Series ofInvestment
Corporation Bonds(Note 3)Oct. 25, 2011

2,000,000-

2,000,000

1.34

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds(Note 3)

Nov. 22, 2012

5,000,000-

5,000,000

0.68

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds(Note 3)

Nov. 22, 2012

2,000,000-

2,000,000

1.03

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds(Note 3)

May 31, 2013

5,000,000-

5,000,000

0.65

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds(Note 3)

May 31, 2013

2,000,000-

2,000,000

1.46

May 31, 2023

56,500,000-

56,500,000

Use

Remarks

Purchase ofproperties andrepayment of loans

Repayment of loans

Purchase ofproperties
Unsecured
Redemption of
investment
corporation
bonds andrepayment of loans

Repayment of loans

Total(Note 1) These investment corporation bonds are equipped with the same rank rider limited among investment corporation bonds, and with limitations on private
placement among a small number of investors and on resale among qualified institutional investors.
(Note 2) These investment corporation bonds are equipped with the same rank rider limited among investment corporation bonds and limitations on resale among
qualified institutional investors.
(Note 3) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.
(Note 4) Amounts of investment corporation bonds to be redeemed within five years after the date of the balance sheet are as follows.

Investment corporation bonds

7272

Due in One
Year or Less
(thousands of yen)

Due after
One Yearthrough
Two Years(thousands of yen)

Due after
Two Years
throughThree Years(thousands of yen)

Due afterThree Years
through
Four Years(thousands of yen)

Due after
Four Years
throughFive Years(thousands of yen)

16,000,000

13,000,000

7,000,000

5,000,000

7,000,000

Japan Prime Realty Investment Corporation

6) Schedule of Loans Payable

LenderIncrease
Decrease
Balance asduringduringBalance as of Averageof Jul. 1,
Current
Current Dec. 31, 2013 Interest Rate2013
PeriodPeriod(thousands of (Note 2)(thousands(thousands (thousands ofyen)(Note 3)of yen)of yen)yen)

Repayment
Date

Use

Remarks(Note 4)

Unsecured/
Unguaranteed/
Non-Subordinated

Use

Remarks

Short-term loans payable
The Norinchukin Bank-

1,000,000-

1,000,000

0.398㸣

Dec. 5, 2014

The Hachijuni Bank, Ltd.

-

1,000,000-

1,000,000

0.479㸣

Sep. 24, 2014-

2,000,000-

2,000,000

Total

Balance asof Jul. 1,
Lender2013(thousandsof yen)Increase

DecreaseduringduringCurrent

Current

PeriodPeriod(thousands(thousandsof yen)of yen)Balance as

Averageof Dec. 31,

Interest

2013

Rate

(thousands(Note 2)of yen)(Note 3)

Repayment
DateLong-Term Loans Payable (Note1)
Mizuho Bank, Ltd.

5,200,000-

100,000

5,100,000

2.449%(Note 5)

Mizuho Bank, Ltd.

3,000,000-

3,000,000-

1.279%

Nov. 27, 2013

Mizuho Bank, Ltd.

5,000,000--

5,000,000

1.414%

Feb. 4, 2016

Mizuho Bank, Ltd.

7,000,000--

7,000,000

1.093%

Mar. 30, 2017

Mizuho Bank, Ltd.

2,000,000--

2,000,000

1.027%

Dec. 5, 2019

Mizuho Bank, Ltd.

-

3,000,000-

3,000,000

0.970%

Nov. 27, 2020

Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,336,000-

83,0004,253,000

2.390%(Note 6)

Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000-

3,000,000-

1.279%

Nov. 27, 2013

Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000,000--

5,000,000

1.198%

Mar. 25, 2016

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.178%

Aug. 8, 2019

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.948%

Aug. 8, 2017

Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000--

3,000,000

0.919%

Sep. 5, 2017

Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

3,000,000-

3,000,000

0.970%

Nov. 27, 2020

Sumitomo Mitsui Banking
Corporation

2,600,000-

50,0002,550,000

2.440%(Note 7)

Sumitomo Mitsui Banking
Corporation

6,400,000--

6,400,000

1.093%

Mar. 30, 2017

Sumitomo Mitsui Banking
Corporation

1,000,000--

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking
Corporation

3,000,000--

3,000,000

1.265%

Jun. 26, 2020

Aozora Bank, Ltd.

1,000,000-

1,000,000-

1.322%

Sep. 30, 2013

Aozora Bank, Ltd.

900,000--

900,000

0.994%

Jul. 3, 2017

Aozora Bank, Ltd.

2,000,000--

2,000,000

1.178%

Aug. 8, 2019

Aozora Bank, Ltd.

2,000,000--

2,000,000

0.985%

Aug. 25, 2017

Aozora Bank, Ltd.

2,000,000--

2,000,000

1.146%

Aug. 30, 2018

Aozora Bank, Ltd.

-

1,000,000-

1,000,000

1.069%

Sep. 24, 2020

Shinsei Bank, Ltd.

2,000,000-

2,000,000-

1.070%

Sep. 24, 2013

Shinsei Bank, Ltd.

5,000,000--

5,000,000

1.397%

Apr. 5, 2019

Shinsei Bank, Ltd.

-2,000,000-

2,000,000

1.076%

Sep. 24, 2020

Mizuho Trust & Banking Co., Ltd.

4,000,000--

4,000,000

1.093%

Mar. 30, 2017

Mizuho Trust & Banking Co., Ltd.

3,000,000--

3,000,000

1.076%

Feb. 4, 2020

Mitsubishi UFJ Trust and Banking
Corporation

5,000,000--

5,000,000

1.184%

Aug. 29, 2017

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

0.924%

Aug. 31, 2015

Unsecured/(Note 4)

Unguaranteed/
Non-Subordinated7373IV. Financial Statements

LenderMitsubishi UFJ Trust and Banking
Corporation
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
The Bank of Fukuoka, Ltd.

Increase
Decrease
Balance as ofduringduringBalance as ofJul. 1, 2013
Current
Current Dec. 31, 2013
(thousands ofPeriodPeriod(thousands ofyen)(thousands of (thousands of
yen)
yen)
yen)

Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

1,000,000--

1,000,000

0.843%

Jun. 26, 2015

3,200,000
820,000
1,000,000
2,000,000

2,000,000-

100,000
1,000,000-

3,100,000
820,000
2,000,000
2,000,000

3.190%
1.449%
1.188%
1.070%
1.170%(Note 8)Jun. 25, 2021
Dec. 3, 2021
Sep. 24, 2013
Jul. 7, 2016

Use

Remarks

The Bank of Fukuoka, Ltd.

2,000,000-

0.902%

Oct. 9, 2015

2,000,000
2,000,000
3,802,000
2,000,000
1,000,000
3,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
3,000,000
2,000,000
2,000,000

1,000,000
2,000,000
3,000,000
1,000,000
1,000,000-

66,0002,000,000
1,000,000
1,000,000
2,000,000-

2,000,000

The Bank of Fukuoka, Ltd.
Sompo Japan Insurance Inc.
Sompo Japan Insurance Inc.
Meiji Yasuda Life Insurance Company
ORIX Bank Corporation
ORIX Bank Corporation
ORIX Bank Corporation
Shinkin Central BankThe Shinkumi Federation Bank
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Taiyo Life Insurance Company
Taiyo Life Insurance Company
The Chugoku Bank, Ltd.
The Chugoku Bank, Ltd.
The Chugoku Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
Sumitomo Life Insurance Company
Sumitomo Life Insurance Company
Zenkyoren (National Mutual Insurance
Federation of Agricultural
Cooperatives)
Daido Life Insurance Company
Daido Life Insurance Company
Daido Life Insurance Company
Resona Bank, Limited
The Iyo Bank, Ltd.
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
The Tokyo Tomin Bank, Limited (Note10)
The Hachijuni Bank, Ltd.
The Hachijuni Bank, Ltd.
The Bank of Yokohama, Ltd. (Note 10)

1,000,000
2,000,000
2,000,000
3,736,000
1,000,000
2,000,000
3,000,000
3,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,000,000
3,000,000
2,000,000

0.911%
0.981%
0.874%
1.800%
1.281%
0.786%
0.762%
0.689%
0.786%
1.858%
1.275%
0.949%
1.011%
1.070%
0.902%
0.758%
1.149%
1.858%
2.257%

Sep. 24, 2019
Oct. 11, 2016
Dec. 25, 2015
(Note 9)Nov. 27, 2013
Feb. 5, 2018
May 27, 2019
Dec. 5, 2018
Feb. 5, 2018
Dec. 27, 2013
Sep. 24, 2015
Jun. 4, 2018
Unsecured/Dec. 25, 2020
(Note 4) Unguaranteed/
Sep. 24, 2013
Non-SubordinatedOct. 9, 2015
Sep. 25, 2018
May 27, 2016
Dec. 27, 2013
Jun. 4, 2015

2,000,000--

2,000,000

1.725%

Mar. 26, 2015

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

1,000,000-

1,000,000-

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

1.858%
1.666%
0.710%
1.093%
0.902%

Dec. 27, 2013
Feb. 5, 2015
Dec. 27, 2018
Mar. 30, 2017
Oct. 9, 2015-

1,000,000-

1,000,000

0.710%

Dec. 27, 2018

1,000,000--

1,000,000

0.690%

Sep. 30, 2015

1,000,000
1,000,000
1,000,000-

1,000,000-

1,000,000
1,000,000

1.070%
0.902%
0.690%

Sep. 24, 2013
Oct. 9, 2015
Sep. 30, 2015

Total

130,658,000

21,000,000

18,399,000

133,259,000(Note 1)

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable(Note 2)

12,235,000

19,732,000

17,332,000

31,632,000

Due after Four Years
through Five Years(thousands of yen)
16,408,000

The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 3) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable, except those that fall under the category of Note
10.
(Note 4) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.
(Note 5) The loans payable are subject to repayment of 100 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 5,100 million
yen will be made on maturity date June 27, 2014.
(Note 6) The loans payable are subject to repayment of 83 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 4,253 million yen
will be made on maturity date June 27, 2014.
(Note 7) The loans payable are subject to repayment of 50 million yen on December 25, 2009 and thereafter every 6 months. In addition, repayment of 2,550 million yen
will be made on maturity date June 27, 2014.
(Note 8) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million
yen will be made on maturity date June 27, 2019.
(Note 9) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter every 6 months. In addition, repayment of 3,208 million yen will
be made on maturity date June 21, 2018.
(Note 10) The loans are with floating interest rates.

7474

Japan Prime Realty Investment Corporation(8) Report of Independent Auditors

7575

IV. Financial Statements(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
23rd Fiscal Period(January 1, 2013 – June 30, 2013) (Reference)

24th Fiscal Period(July 1, 2013 – December 31, 2013)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
23rd fiscal period (January 1, 2013 – June 30, 2013) (Reference)
Attribute

Asset
CustodianName ofCompany,etc.

Mizuho Trust& BankingCo., Ltd.

Business
Description or
Occupation

Percentage of Numberof Investment Units
Held Among Total
Number of Investment
Units

Bankingbusiness andtrust business-Transactions

Transaction
Amount(thousands ofyen)

Repayment oflong-term loans
payable3,000,000

Long-term loans
payable3,000,000

Interest
expenses

38,550Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
624(Note) Transaction terms are determined based on prevailing market conditions.

24th fiscal period (July 1, 2013 – December 31, 2013)
Attribute

Name ofCompany, etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

Percentage of Numberof Investment Units
Held Among Total
Number of Investment
Units

-

(Note) Transaction terms are determined based on prevailing market conditions.

7676

Transactions

Transaction
Amount(thousands ofyen)

Account--

Interest
expenses

38,312Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000832

V. Investor Information

Japan Prime Realty Investment Corporation

Status of Investment Unit Price (as of December 30, 2013)
Trading Market capitalization: ¥278.0 billion
Volume¥564,000 (May 7, 2007)(units) High:¥130,300 (October 28, 2008)
32,000 Low:
28,000

Unit price at end of
24th Fiscal Period:

Unit

Trading volume (units)

Unit price (yen) Price(yen)
580,000¥337,000 (December 30, 2013)

520,000

Offer price at additional offering: ¥449,820

24,000460,000

20,000400,000

16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

Offer price at additional offering: ¥237,160
220,000

8,000 Offer price at IPO: ¥200,000
4,000

Offer price at additional offering: ¥194,610
160,000
Offer price at additional offering: ¥168,1010

100,000

Jun. 14 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 3 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 6 Feb. 5
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2002
2003
1/0/1900
7/25/2002
9/4/2002
10/18/2002
11/29/2002
1/17/2003
2/28/2003
4/11/2003
5/26/2003
7/4/2003
8/15/2003
9/29/2003
11/11/2003
12/24/2003
2/9/2004
3/22/2004
5/6/2004
6/16/2004
7/28/2004
9/7/2004
10/21/2004
12/3/2004
1/19/2005
3/2/2005
4/13/2005
5/30/2005
7/8/2005
8/19/2005
10/3/2005
11/15/2005
12/28/2005
2/10/2006
3/24/2006
5/9/2006
6/19/2006
7/31/2006
9/8/2006
10/23/2006
12/5/2006
1/19/2007
3/2/2007
4/13/2007
5/29/2007
7/9/2007
8/20/2007
10/2/2007
11/13/2007
12/26/2007
2/13/2008
3/26/2008
5/9/2008
6/19/2008
7/31/2008
9/10/2008
10/24/2008
12/8/2008
1/23/2009
3/6/2009
4/17/2009
6/3/2009
7/14/2009
8/25/2009
10/8/200911/20/2009
1/6/2010
2/18/2010
4/1/2010
5/18/2010
6/28/2010
8/9/2010
9/17/2010
11/2/201012/15/2010
1/31/2011
3/14/2011
4/25/2011
6/9/2011
7/21/2011
8/31/201110/14/2011
11/28/2011
1/12/2012
2/22/2012
4/4/2012
5/18/2012
6/28/2012
8/9/2012
9/20/2012
11/1/201212/13/2012
1/31/2013
3/14/2013
4/25/2013
6/10/2013
7/22/2013
8/30/201310/15/2013
11/26/2013
1/14/2014(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of December 31, 2013)
Other domestic
corporations

Foreign investors

311

209

(2.41%)(1.62%)

Individuals

42,326 units

Foreign investors(5.13%)

189,869 units(23.01%)

Financial institutions(including securities firms)

Number ofunitholders
by investor type(1.11%)

12,877144

Number ofinvestment units
by investor type

Other domestic
corporations

825,000
units

82,717 units(10.02%)

Individuals

Financial institutions(including securities firms)(94.84%)(61.82%)510,088 units

12,213(Note) The composition ratio is rounded to the second decimal place.

Annual Schedule (Provisional)
December

September

Sending of asset management report for the fiscal period ending June
Start of cash distributions for the fiscal period ending June
Information disclosure

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

Start of cash distributions for the fiscal period ending December
Sending of asset management report for the fiscal period ending December

77Notice Concerning Withholding Tax Rate on Dividends of Listed Stocks, Etc.
Please be informed that the concessionary tax rate imposed on dividends and distributions of listed stocks, etc.
was abolished as of December 31, 2013, and the ordinary tax rate is applicable for dividends and distributions oflisted stocks, etc. to be paid on or after January 1, 2014. For reference, the special income tax for reconstruction isapplied for dividends and distributions for the 25-year period from January 1, 2013 through December 31, 2037 at
the rate of 2.1% on the applicable income tax liability.
The withholding tax rates on dividends and distributions of listed stocks, etc. to be paid on or after January 1, 2014 are as follows.
From January 1, 2013
to December 31, 2013

From January 1, 2014
to December 31, 2037

From January 1, 2037
and thereafter

7%

15%

15%

0.147%

0.315%

—

3%

5%

5%

10.147%20.315%20%

Income tax
Special income tax for reconstruction
Resident tax
Total⃝ Resident tax is not levied on corporations.

⃝ This notice is meant to provide general information regarding taxation on dividends and distributions of listed stocks, etc., and there may be cases in which the content of this notice is notapplicable. For details, please inquire at the nearest tax office, with a tax accountant or other specialist.
⃝ This notice has been prepared based on the information available as of January 1, 2014.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

More than once every two years

Base Date of General Meeting of Unitholders The date designated pursuant of JPR’s Articles of Incorporation
Cash Distribution Payment Eligibility
Transfer Agent

Unitholders of record as of June 30 and December 31 of each year
Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo
Main Branch, Stock Transfer Agency Division

Location of Records

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

Mailing Address

Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507

Contact by Phone

0120-288-324

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Procedures for Change of Address
For filing or inquiring about a change of address, please contact your securities company with whom you have an account.
For unitholders who have not utilized Japan Securities Depository Center, Inc. before the dematerialization of stock certificates, accounts (special accounts)
have been opened at Mizuho Trust & Banking Co., Ltd., JPR’s transfer agent. For filing or inquiring about a change of address and other matters with regard
to your special account, please direct them to the contact number indicated above.
Cash Distributions
Cash distributions can be collected by bringing the “unitholder dividend receipt” to the nearest Japan Post Bank main or branch office, sub-branch office orpost office (bank agent) in Japan. If the collection period has elapsed, please make your collection by designating the collection method on the back of the“unitholder dividend receipt” and mailing it to Mizuho Trust & Banking’s Stock Transfer Agency Division. Cash distributions can also be collected at themain or branch offices of Mizuho Trust & Banking (excluding the Trust Lounge) and Mizuho Bank, Ltd.
If you wish to designate a transfer of cash distributions to a bank, etc., please contact your securities company (if you have an account with the company) or
Mizuho Trust & Banking (if a special account has been opened), as in the case of changing the address, etc. above.
(Note)	According to the provisions of JPR’s Articles of Incorporation, cash distributions will become irretrievable if they remain unclaimed for three full years from the date on which payment commenced.
We advise that cash distributions be received as soon as possible.