Sixth Fiscal Period Results(July 1, 2004 – December 31, 2004)

February 2005

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Japan Prime Realty Investment Corporation

This document contains a translation of selected information described in the Financial Report (Kessan Tanshin) dated
February 17, 2005 and prepared under the timely disclosure requirements of the Tokyo Stock Exchange, as well as the
Financial Statements and Performance Information Report written pursuant to the Investment Trust Law of Japan, for theperiod from July 1, 2004 to December 31, 2004 of Japan Prime Realty Investment Corporation (“JPR”).
This English language document was provided solely for the convenience of and reference by non-Japanese
investors and is not intended to constitute a disclosure document. The Japanese language Financial Report, Financial
Statements and Performance Information Report for the aforementioned period should be referred to as the originals of
this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely
identical concepts of the equivalent Japanese terms. The figures presented in the financial statements and other data
including real estate portfolio details may differ from the Company’s Business Reports due to rounding. With respect toany and all terms herein, including without limitation, financial statements, if there exist any discrepancies in the meaning
or interpretation thereof between the original Japanese documents and English documents contained herein, the original
Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.
nor any of their respective directors, officers, employees, partners, shareholders, agents or affiliates will be responsible or
liable for the completeness, appropriateness or accuracy of English translations or the selection of the portion(s) of any
document(s) translated into English. No person has been authorized to give any information or make any representations
other than as contained in this document in relation to the matters set out in this document, and if given or made, suchinformation or representation must not be relied upon as having been authorized by JPR, Tokyo Realty Investment
Management, Inc. or any of their respective directors, officers, employees, partners, shareholders, agents or affiliates.
The financial statements of JPR have been prepared in accordance with generally accepted accounting principles
in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting principles inother jurisdictions.
Many provisions of this document contain information that constitutes forward-looking statements. These
forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual
results may differ materially from those in the forward-looking statements as a result of various factors.
Contact Information:
Tokyo Realty Investment Management, Inc.
Investor Relations Group
Takeshi Maki+813-3516-1606

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Japan Prime Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8955. (URL
http://www.jpr-reit.co.jp/jpr_e/index.html)
Board of Directors Meeting: February 17, 2005
Payment of Dividends: March 9, 2005 (planned)

PERFORMANCE (July 1, 2004 – December 31, 2004)(1) Business Results(Amounts less than a million yen discarded)(Millions of yen, yen for per unit information)

Operating
Revenues%
ChangeNet
Operating
Profits%
ChangeRecurring
Profits%
ChangeNet Income%
ChangeDec. 31, 2004

7,685

(13.2%)

3,469(13.3%)

2,869(9.7%)

2,868(9.7%)

June 30, 2004

6,790

(5.8%)

3,061(4.3%)

2,615(6.0%)

2,614(6.0%)
(Yen)

EPU

Net
Income/NAV<Reference>(Annualized)

Recurring
Profits/Total Assets<Reference>(Annualized)

Recurring Profits/
Operating Revenues

Dec. 31, 2004

6,671

3.1%

(6.2%)

1.5%(3.0%)

37.3%

June 30, 2004

6,080

2.9%

(5.7%)

1.5%(3.1%)

38.5%

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

(2) Cash Distributions(Millions of yen, yen for DPU )DPUDistribution
AmountExceedingProfitDistribution Per
Unit

ExceedingProfitDistribution
AmountDividend
Payout Ratio

Distribution/
NAV

Dec. 31, 2004

6,671

2,868

―

―

100.0%

3.1%

June 30, 2004

6,081

2,614

―

―

100.0%

2.9%

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

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

Total Assets

NAV

NAV Ratio

NAV Per Unit

Dec. 31, 2004

198,673

91,982

46.3%

213,912June 30, 2004

182,253

91,72850.3%

213,322

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

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SIXTH FISCAL PERIOD HIGHLIGHTS

Market Environment
Office Building Leasing
In the fiscal period ended December 31, 2004, vacancy rates in central business districts (CBDs) in Tokyo
for leased office space fell to approximately 5% with increasing parity between supply and demand.
Overall, lease rentals bottomed out as lease terms and conditions improved. In particular, lease rentals forprime locations appeared on the upswing owing to the decline in supply of high-specification large-sizedbuildings.
In other major cities, vacancy rates are improving particularly in principal cities including
Osaka, Nagoya and Fukuoka. Despite these positive signs, lease rentals remain entrenched in an
adjustment phase.
Retail Property Leasing
The Japanese macro economy exhibited signs of weaker growth in the six-month period ended
December 31, 2004. Sales in the retail industry, which had also experienced a soft recovery, began to
decline in the latter half of the year, with a drop in clothing and food sales at department stores,
supermarkets, general merchandising stores and other shopping centers stemming from unusual weather
patterns including typhoons and a mild winter.
Conditions in the retail property leasing market experienced little change from the previous
fiscal period. Fueled by a drop in lease rentals for retail properties in CBDs, large-scale home appliancestores, home centers and shopping centers continued their shift from suburban areas to CBDs. In
suburban areas, the focus on location and facilities also continued unabated, with signs of a recovery inlease rentals for certain properties with superior conditions.
Real Estate
For the fiscal period under review, Japan’s real estate market continued to attract investments, buoyed bya recovery in the Japanese macro economy, prospects of an improvement in the demand and supply oflease rental properties and other favorable conditions. Demand from overseas and domestic investment
funds also increased, reflecting a lack of more attractive investment opportunities with low interest rates
in Japan, and the relative international cost advantages of real estate markets in Japan amid a global capitalsurplus.
In Japan’s property sales market, demand for prime properties particularly in CBDs in Tokyo
continued to intensify. Underpinned by a variety of private real estate funds and the increase in publicly
listed real estate investment trusts (J-REITs), the market experienced a significant increase in property
market prices in comparison with their appraisal values. This trend was also evident for retail properties
and real estate located in areas such as Osaka, Nagoya, Fukuoka and other cities.

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Acquisitions
Under these circumstances, JPR strove to create a stable revenue stream, improve the balance of its
portfolio, and to diversify its asset holdings across categories of geographical location and type of use. To
this end, based on strict selection criteria, the Company acquired prime office buildings and commercial
facilities that are expected to generate stable cash flows. In the fiscal period under review, JPR acquired
the Shinjuku Square Tower on July 2, 2004 (co-ownership for an investment of ¥10,000 million), the SS
Daikanyama on October 5, 2004 (for an investment of ¥2,160 million), the BYGS Shinjuku Building on
November 9, 2004 (co-ownership for an investment of ¥2,900 million), the Shin-Kojimachi Building on
November 12, 2004 (increase in co-ownership for an investment of ¥200 million), and the AcrossShinkawa Building Annex on November 26, 2004 (co-ownership for an investment of ¥710 million). As
a result of these acquisitions, JPR held 42 properties as of December 31, 2004, totaling ¥179,620 million
on an acquisition price basis, with total leasable floor space of 273,330.52 m2 and 496 tenants.
In line with the Company’s focus on development properties, JPR also contracted to acquire
the Cupo-la Main Building (1-1 Kawaguchi Redevelopment Project) on November 25, 2004 (for aplanned investment of ¥2,100 million). The Cupo-la Main Building is currently under construction andscheduled for completion in March 2006. In addition, the Company executed a contract to acquire theStrasse Ichibancho on December 20, 2004 (for an investment of ¥4,200 million). JPR acquired theproperty on February 4, 2005.
Sales
In addition to those properties acquired during the fiscal period under review, the Company also
undertook to sell a portion of its property holdings. The Company made a decision to dispose of the JPR
Ikebukuro Building, the JPR Square Hakata East/West, and the JPR Park West Takamatsu on December
20, 2004, as a part of efforts to secure a portfolio capable of generating efficient cash flows and stabledividends consistent with JPR’s value-enhanced property strategy and its selectivity within certain
investment areas. Settlement for the three properties is scheduled in March 2005.
Note: As of January 1, 2005, JPR has decided to change the names of certain buildings within its property
holdings to enhance its brand value. Brief details are as follows.
New Name

Previous NameJPR Crest Takebashi Building
JPR Ichigaya Building
JPR Shibuya Tower Records Building
JPR Yokohama Nihon Odori Building
JPR Ueno East Building
JPR Park West Takamatsu
JPR Square Hakata East/WestJPR Nagoya Sakae Building
JPR Umeda Loft Building

Crest Yasuda Building
Kenwa Building
Jinnan 1-chome Building
Asahi-Life Yokohama Nihon Odori Building
SEF Building
Asahi-Life Takamatsu 2nd Building
Asahi-Life Fukuoka 3rd/4th Building
Nagoya Kowa Building
Kuraray Nissay Building

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Property Portfolio Asset Management
Occupancy Rate
Although office building leasing markets are weak in some regional areas, JPR undertakes renovations,repairs and maintenance of its property holdings and formulates strategies to attract and cultivate new
tenants. In the fiscal period under review, the Company completed renovations to the common areas of
the SK Hiroshima Building and the JPR Square Hakata East/West in an effort to improve customer
satisfaction. As a result, the overall property portfolio occupancy rate stood at 95.1% as of December 31,
2004, up 1.9 percentage points from the end of the previous period.
Cost Reductions
Following changes to the scope of property management as well as other efforts including changes tomanagement methods and the review of outsourcing commissions, JPR successfully reduced property
management costs approximately 3% on an annual basis compared with the end of the previous period.
This reduction was in connection with 25 properties held by the Company where property management
was outsourced by property managers.
Value-Enhanced Properties
Renovations to the JPR Ikebukuro Building, which has been identified as a value-enhanced property,
were completed during the previous period. Buoyed by a reduction in management costs anddistinguished efforts to attract tenants, the Company has realized an increase in asset value. Accordingly,
JPR has undertaken to sell the property in March 2005 as stated previously.
Funds Procurement
In its sixth fiscal period, JPR continued to adopt strategies aimed at ensuring a stable financial position.
The Company worked to steadily expand its property portfolio and procured short-term funds for
greater flexibility and long-term funds for improved stability. In the context of its long-term funds
procurement, JPR issued corporate bonds with the aim of diversifying maturities of its interest-bearing
debt. As a result of these efforts, the balance of total outstanding debt as of December 31, 2004 stood at¥51,060 million, with the balance of unsecured corporate bonds totaling ¥42,000 million. In an effort to
reduce exposure to the risk of potential increases in interest rates, 77.3% of total outstanding debt islong-term debt with fixed interest rates and a maturity of more than one year (average maturity 5.0 years,
see Note 1.
The average interest rate during the fiscal period ended December 31, 2004 was 1.2% (seeNote 2). The interest-bearing debt ratio was 51.1% (see Note 3), and the interest-bearing debt to total
assets ratio was 46.8% (see Note 4).
Details of the Company’s corporate bonds and corporate credit ratings are as follows.

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Unsecured Corporate Bonds

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

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

Total Issue Amount:¥10,000 million

Subscription Date:

October 21, 2004

Interest Rate:

0.92% p.a.

Payment Date:

November 4, 2004

Collateral:

Unsecured, unguaranteed

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

Maturity Date andPrincipal redemption in full on November 4, 2009. Bonds may be redeemed at any time from

Redemption Method:

the day immediately following the payment date.

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

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

Total Issue Amount:¥5,000 million

Subscription Date:

October 21, 2004

Interest Rate:

1.44% p.a.

Payment Date:

November 4, 2004

Collateral:

Unsecured, unguaranteed

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

Maturity Date andPrincipal redemption in full on November 4, 2011. Bonds may be redeemed at any time from

Redemption Method:

the day immediately following the payment date.

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

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

Total Issue Amount:¥5,000 million

Subscription Date:

October 21, 2004

Interest Rate:

2.00% p.a.

Payment Date:

November 4, 2004

Collateral:

Unsecured, unguaranteed

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

Maturity Date andPrincipal redemption in full on November 4, 2014. Bonds may be redeemed at any time from

Redemption Method:

the day immediately following the payment date.

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Details of Corporate Bonds and Corporate Credit Ratings as of December 31, 2004
Ratings Agency

Standard & Poor’s
Moody’s Investor Service

Corporate Credit Rating
Long-term: A- (Stable)
Short-term: A-2 (Stable)

Corporate Bonds(Bond Issues One through Six)A-

A3 (Stable)

A3

Long-term preferred debt rating: A+

A+

Rating and Investment
Information, Inc.

Notes:
１. Average maturity of long-term interest-bearing debt, which is interest-bearing debt with a maturity of more than
one year, is calculated using the weighted average of each debt over the number of years to repayment starting at theend of the fiscal period ended December 31, 2004. The balance of outstanding long-term interest-bearing debt
stood at ¥71,960 million as of December 31, 2004.
２. Average interest rate is the weighted-average interest rate of outstanding debt as of December 31, 2004.
３. Interest-bearing debt ratio (%) = Interest-bearing debt / (Interest-bearing debt + Total unitholders’ equity) x 100
Total unitholders’ equity was ¥89,110 million as of December 31, 2004.
４. Interest-bearing debt to total assets ratio (%) = Interest-bearing debt / Period-end total assets x 100
Total assets as of December 31, 2004 were ¥198,670 million.

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FORECASTS FOR SEVENTH FISCAL PERIOD ENDING JUNE 30, 2005
(Millions of yen, yen for DPU and exceeding profit distribution per unit)

Seventh Fiscal
Period Ending June30, 2005

Operating
Revenues

Net
Operating
Profits

8,216

3,675

Recurring
Profits

3,075

Net Income(excluding exceeding profit
distribution per unit)

DPU

Exceeding Profit
Distribution Per
Unit

3,074

5,800

−

Reference: Estimated EPU for the fiscal period: ¥The above-mentioned forecasts are based on “Assumptions for the Seventh Fiscal Period Forecast (fromJanuary 1, 2005 to June 30, 2005)” in this Financial Report. In addition, based on an average month-end
occupancy rate of 97.1% and the premise that “Assumptions for the Seventh Fiscal Period Forecast” will carrythrough for the duration of the eighth fiscal period, forecasts for the eighth fiscal period ending December 31,
2005 are as follows.
(Millions of yen, yen for DPU and exceeding profit distribution per unit)

Eighth Fiscal
Period Ending
December 31, 2005

Operating
Revenues

Net
Operating
Profits

7,637

3,266

Recurring
Profits

2,704

Net Income(excluding exceeding profit
distribution per unit)

DPU

Exceeding Profit
Distribution Per
Unit

2,703

5,100

−

The aforementioned forecasts are based on assumptions and information available to management as of thedate of this report. As a result, actual net income and distributions will be subject to changes in market
conditions. Accordingly, the forecasts do not guarantee any cash distribution amounts.

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Assumptions for the Seventh Fiscal Period Forecast(January 1, 2005 to June 30, 2005)
Item
Calculation period

Assumption
From January 1, 2005 to June 30, 2005 (181 days)
As of December 31, 2004, the Company owned 42 properties. Assumptions are also based on the acquisition of the Strasse

Properties owned

Ichibancho on February 4, 2005 and the sale of the JPR Ikebukuro Building, the JPR Park West Takamatsu, and the JPR Square
Hakata East/West planned for March 16, 2005. The average month-end occupancy rate for the period is forecast at 94.4%.
Actual number of properties owned may change due to the subsequent acquisition or sale of properties.
Calculations are based on 530,000 investment units, comprising 430,000 investment units issued and outstanding as ofInvestment units issued

December 31, 2004, an additional issue of 95,000 investment units and a secondary offering (over-allotment option) of 5,000
investment units (upper limit) by way of third-party allotment.
A portion of the proceeds procured through the additional issue of investment units in February 2005 was utilized in theacquisition of the Strasse Ichibancho and the repayment of short-term debt totaling ¥21,100 million. In addition, with theInterest-bearing debt ratio

planned secondary offering (over allotment option) of 5,000 investment units (upper limit) by way of third-party allotment inMarch 2005, the interest-bearing debt ratio is expected to fall to 38.4% based on current assumptions.
The following formula is used to calculate the interest-bearing debt ratio:
Interest-bearing debt ratio = Interest-bearing debt / (Interest-bearing debt + Total unitholders’ equity) x 100
Property tax and urban planning tax applicable to the acquisitions of the Strasse Ichibancho after January 1, 2005 are included

Operating costs
and expenses

in the acquisition price of the property and are not charged as operating expenses. (However, property tax and urban planningtax charged to the owner on January 1, 2006 are accounted for as operating expenses after the fiscal period ending June 30,
2006.)

Profit and loss on sale of realestateForecasts include an estimate for profit and loss in connection with the planned sale of three properties on March 16, 2005.
Forecasts assume the distribution of an amount of net income available for distribution, divided by total units outstanding andCash distributions

limited to the amount of unappropriated profits. Amounts less than ¥1 are discarded. Forecasts also assume that there will be
no distribution in excess of profit, in accordance with corporate policy.

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Balance Sheets (as of December 31, 2004 and June 30, 2004)
Assets(Yen in Thousands)
Item

End of Sixth Period(as of December 31,
2004)

End of Fifth Period(as of June 30, 2004)

5,243,711
13,535,018
158,642
131,63031―
420,401
19,489,436

4,228,269
13,771,668
148,578
148,55940
372,947
59,53318,729,596

4.1%

5,585,912
70,859,636
2,763
32,95155,081
1,235,628
289
15,6339,510,751
97,804,383
4,250
3,213
(6,128,729)
178,981,765

4,352,438
65,375,374―
8,790
40,122
1,189,927
289
12,3974,750,735
92,389,190―
1,869(4,737,067)
163,384,068

9.5%

3,744
3,744

―
―

―

10,1003,051
13,151

10,1004,449
14,549(9.6%)

178,998,660

163,398,617

9.5%

185,490

125,393

185,490

125,39347.9%

198,673,587

182,253,608

9.0%

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

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

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Balance Sheets (as of December 31, 2004 and June 30, 2004)
Liabilities(Yen in Thousands)
End of Sixth PeriodItem(as of December 31,
2004)

End of Fifth Period(as of June 30, 2004)% Change

Current Liabilities:
793,746

890,323

Short-term debt

21,100,000

25,200,000

Accounts payable

449,144352,921

Accrued expenses

182,659

139,994975

929

Accrued consumption taxes

37,940―Rents received in advance812,366

766,493

23,376,834

27,350,664

Corporate bonds

42,000,000

22,000,000

Long-term debt

29,966,000

29,966,000

Leasehold and security deposits received

1,241,283

901,523

10,107,066

10,306,735

Total Long-Term Liabilities

83,314,350

63,174,258

31.9%

Total Liabilities

106,691,185

90,524,923

17.9%

89,113,803

89,113,803

Retained earnings

2,868,599

2,614,881

Total Unitholders’ Equity

91,982,402

91,728,685

0.3%

Total Liabilities and Unitholders’ Equity

198,673,587

182,253,608

9.0%

Trade accounts payable

Accrued income taxes

Total Current Liabilities(14.5%)

Long-Term Liabilities:

Entrusted leasehold and security deposits
received

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

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Statements of Income and Retained Earnings (July 1, 2004 – December 31, 2004 and January 1, 2004
– June 30, 2004)(Yen in Thousands)
Item

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

13

Sixth Fiscal Period

Fifth Fiscal Period(July 1, 2004 –Dec. 31, 2004)
7,685,733
7,685,733
4,216,528
3,672,910
317,710
65,6785,700
50,222
104,306
3,469,204
13,873117―
13,755(Jan. 1, 2004 –June 30, 2004)
6,790,657
6,790,657
3,729,107
3,268,801
293,872
64,5295,700
42,43953,766
3,061,549
109,340
113
106,677
2,548

613,522
319,171
40,163
190,870
42,113
21,2022,869,556
2,869,556
999
9
2,868,547
51
2,868,599

555,135
294,763
95,807113,262
25,07826,223
2,615,754
2,615,754
952
16
2,614,785
96
2,614,881%Change

13.2%
13.1%

13.3%
(87.3%)

10.5%

9.7%

9.7%
(46.3%)
9.7%

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Statements of Cash Flows (July 1, 2004 – December 31, 2004 and January 1, 2004 – June 30, 2004)

Sixth Fiscal Period(July 1, 2004 –Dec. 31, 2004)(Yen in Thousands)
Fifth Fiscal Period(Jan. 1, 2004 –June 30, 2004)

2,869,556
1,391,662
42,113(117)
510,042(10,063)
372,947
16,928(96,576)
102,063
37,94045,873―(359,129)
4,923,239
117(467,377)(953)
4,455,027

2,615,754
1,200,523
25,078(113)
408,025(43,008)(372,947)(31,220)(88,743)(12,603)(56,859)
211,223(3,900)(51,194)3,800,013
113(278,964)(1,049)3,520,113

Cash Flows from Investing Activities:
Purchases of property and equipment
Purchases of entrusted property and equipment
Purchases of intangible assets
Payment for leasehold and security deposits received
Proceeds from leasehold and security deposits received
Payment for entrusted leasehold and security deposits received
Proceeds from entrusted leasehold and security deposits received
Net cash used in investing activities(6,015,462)(10,973,897)(4,084)(158,769)
498,529(655,840)
456,172(16,853,352)(3,420,184)(21,941,191)―(25,262)442,706(1,272,811)
1,488,653(24,728,089)

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

34,300,000(38,400,000)――
20,000,000(102,211)(2,620,670)
13,177,117
778,791
17,999,938
18,778,729

25,200,000(12,900,000)
1,000,000(10,600,000)
22,000,000(150,472)(2,452,630)
22,096,897
888,921
17,111,016
17,999,938

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

14

CONSOLIDATED

Japan Prime Realty Investment Corporation

Subsequent Events
Sixth Fiscal Period (July 1, 2004 – Dec. 31, 2004)<Primary Offering for the Issue of New Investment Units>

Fifth Fiscal Period (Jan. 1, 2004 – June 30, 2004)
There were no subsequent events of a material nature.

Payment in connection with new investment units, the issue
and pricing of which were approved at Board of Directors
meetings held on January 13, 2005 and January 24, 2005,
respectively, was completed on February 1, 2005, terms andconditions briefly as follows. As a result, unitholders’ capital
totaled ¥114,115,618,600, while the number of investment
units issued and outstanding was 525,000 as of February 2,
2005.
Number of new investment
95,000units issued:
Purchase (public offering)
price:¥272,440 per investment unit

Gross proceeds:¥25,881,800,000

Purchase(underwriting)price:¥263,177 per investment unit

Gross proceeds:¥25,001,815,000

Payment date:February 1, 2005

Delivery date:February 2, 2005

Starting date of computation
for cash distribution:

January 1, 2005

<Secondary Offering (Over-Allotment Option) ― the“Greenshoe Option” by way of Third-Party Allotment>
JPR

resolved

toundertakeasecondaryoffering(over-allotment option) by way of third-party allotment at
Board of Directors meetings held on January 13, 2005 andJanuary 24, 2005, brief details as follows. JPR also proved the
granting of an option (the “Greenshoe Option”) by way ofthird-party allotment to Mizuho Securities Co., Ltd. The
greenshoe option may be exercised by no later than February
25, 2005.

15

CONSOLIDATED

Japan Prime Realty Investment Corporation

Number of investment units
to be issued:

5,000 (maximum)

Purchase price:¥263,177 per investment unit

Gross proceeds:¥1,315,885,000 (maximum)

Third-party allottee:

Mizuho Securities Co., Ltd.

Payment date:

March 1, 2005

Delivery date:

March 2, 2005

Starting date of computation
for cash distribution:

January 1, 2005

16

CONSOLIDATED

Japan Prime Realty Investment Corporation

Reference
１. Acquisitions
Strasse Ichibancho
Location

3-9-18, Ichibancho, Aoba-ku, Sendai-shi, Miyagi

Type of Ownership

Full ownership of land; Full ownership of building.

Total Site Area

648.81 m2

Total Floor Area

3,445.80 m2

Type of Structure

RC·S B1/8F

Completion

October 2002

Number of Tenants

1

Total Leasable
Space

Floor 2,861.91 m2

Total
Space

Floor 2,861.91 m2

LeasedOccupancy Rate

100%

Acquisition Price¥4,200 million

Type of Asset

Beneficiary interest

Acquisition Date

February 4, 2005

17

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Japan Prime Realty Investment Corporation

Real estate portfolio after property acquisition (as of December 31, 2004)
Area

Tokyo
CBDs

Property Name

Location

Acquired

Acquisition
Price (yen in
millions)

OfficeKanematsu Bldg.

Chuo-ku, Tokyo

Dec. 2001

16,276

9.1%

12,700

OfficeKanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 2001

2,874

1.6%

2,480

OfficeJPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 2001

2,100

1.2%

1,870

Nov. 2001
Nov. 2002
Nov. 2004

1,670
550
200
2,420

0.9%
0.3%
0.1%
1.3%

2,410

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

OfficeJPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 2002

4,000

2.2%

3,220

OfficeMS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 2003

11,200

6.2%

11,300

OfficeGotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 2003

2,920

1.6%

2,810

OfficeFukuoka Bldg.

Chuo-ku, Tokyo

Oct. 2003

1,800

1.0%

1,798

OfficeJPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May. 2004

5,100

2.8%

5,080

OfficeOval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 2004

3,500

2.0%

3,680

OfficeShinjuku Square Tower

Shinjuku-ku, Tokyo

Jul. 2004

10,000

5.6%

9,670

OfficeBYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

Nov. 2004

2,900

1.6%

2,910

OfficeAcross Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 2004

710

0.4%

730

RetailJPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 2003

12,0006.7%

12,700RetailSS Daikanyama

Shibuya-ku, Tokyo

Oct. 2004

2,160

1.2%

2,080

79,96044.5%

75,438

OfficeArca East

Sumida-ku, Tokyo

Nov. 2001

5,880

3.3%

5,450

OfficeJPR Chiba Bldg.

Chiba, Chiba

Dec. 2001

2,350

1.3%

1,988

OfficeJPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 2001

2,927

1.6%

2,490

OfficeJPR Ikebukuro Bldg.

Toshima-ku, Tokyo

Jun. 2002

2,040

1.2%

2,200

OfficeShinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Sep. 2002

920

0.5%

1,020

OfficeKawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 2004

8,100

4.5%

8,600

OfficeJPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 2004

3,250

1.8%

3,320
10,930RetailTanashi ASTA

Nishitokyo, Tokyo

Nov. 2001

10,200

5.7%

RetailTsurumi fuga 1

Yokohama, Kanagawa

Nov. 2001

3,040

1.7%

3,280

38,707

21.6%

39,278Subtotal

Other
Cities% of Total

OfficeSubtotal

GreaterTokyo

Appraisal Valueas of Dec. 31,
2004(yen in millions)

Type

OfficeNiigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 2001

2,140

1.2%

2,057

OfficeMeiji Yasuda-Life Osaka Umeda Bldg.

Osaka, Osaka

Dec. 2001

8,300

4.6%

8,630

OfficeTokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 2001

4,150

2.3%

3,990

OfficeJPR Park West Takamatsu

Takamatsu, Kagawa

Nov. 2001

872

0.5%

742

OfficeJPR Takamatsu Bldg.

Takamatsu, Kagawa

Dec. 2001

2,130

1.2%

1,340

OfficeJPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 2001

2,900

1.6%

2,660

OfficeJPR Square Hakata East/West

Fukuoka, Fukuoka

Nov. 2001

2,873

1.6%

2,600

OfficeJPR Naha Bldg.

Naha, Okinawa

Nov. 2001

1,560

0.9%

1,490

OfficeNorth 33 Bldg.

Sapporo, Hokkaido

Jun. 2002

3,700

2.1%

2,790

OfficePark East Sapporo

Sapporo, Hokkaido

Jun. 2002

2,150

1.2%

1,690

OfficeSompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 2002

3,150

1.7%

3,170

OfficeSompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 2002

1,670

0.9%

1,680

OfficeTenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 2002

2,810

1.6%

2,590

OfficeSK Hiroshima Bldg.

Hiroshima, Hiroshima

Oct. 2002

947

0.5%

836

OfficeJPR Nagoya Sakae Bldg.

Nagoya, Aichi

Sep. 2003

4,550

2.5%

4,655

OfficeDojima F Bldg.

Osaka, Osaka

Jan. 2004

2,140

1.2%

2,130

OfficeSemba Fukuoka Bldg.

Fukuoka, Fukuoka

Jun. 2004

1,920

1.1%

1,960

Osaka, Osaka

May. 2003
Jul. 2003

8,000
5,000
13,00060,962
179,6297.2%

11,80033.9%
100.0%

56,810171,526

RetailJPR Umeda Loft Bldg.
Subtotal

Total

18

CONSOLIDATED

Japan Prime Realty Investment Corporation

Real estate portfolio after property acquisition (as of December 31, 2004)
Area

Tokyo
CBDs

Leasable Area

OfficeKanematsu Bldg.

7,976.30㎡

10

97.5%

385,136

5.0%

OfficeKanematsu Bldg. Annex

2,291.13㎡

1

100.0%

106,114

1.4%

OfficeJPR Ningyo-cho Bldg.

2,788.98㎡

4

100.0%

95,637

1.2%

OfficeShin-Kojimachi Bldg.

2,105.44㎡
901.36㎡
312.53㎡
3,319.33㎡

7
3
1
11

100.0%
100.0%
100.0%
100.0%

63,60230,6593,055
97,316

0.8%
0.4%
0.0%
1.2%

OfficeJPR Crest Takebashi Bldg.

3,265.34㎡

9100.0%

125,100

1.6%

OfficeMS Shibaura Bldg.

14,429.09㎡

7100.0%

496,099

6.5%

OfficeGotanda First Bldg.

4,243.58㎡

2

100.0%

138,083

1.8%

OfficeFukuoka Bldg.

1,250.06㎡

1

100.0%

64,6670.8%

OfficeJPR Ichigaya Bldg.

4,181.66㎡

9100.0%

196,400

2.6%

OfficeOval Court Ohsaki Mark West4,088.44㎡

2

100.0%

170,375

2.2%

OfficeShinjuku Square Tower

10,982.03㎡

17

84.4%

265,420

3.5%

OfficeBYGS Shinjuku Bldg.

3,787.78㎡

22

87.7%

42,972

0.6%

OfficeAcross Shinkawa Bldg. Annex

1,246.72㎡

5100.0%

7,354

0.1%

RetailJPR Shibuya Tower Records Bldg.

8,076.85㎡

1

100.0%

345,576

4.5%

RetailSS Daikanyama

653.99㎡

1

100.0%

24,9770.3%

72,581.28㎡

102

96.7%

2,561,235

33.3%

OfficeArca East

7,050.10㎡

4

93.2%

321,686

4.2%

OfficeJPR Chiba Bldg.

5,561.68㎡

29

95.8%

142,934

1.9%

OfficeJPR Yokohama Nihon Odori Bldg.

6,082.25㎡

10

91.0%

140,462

1.8%

OfficeJPR Ikebukuro Bldg.

4,605.76㎡

7

91.8%

104,270

1.4%

OfficeShinyokohama 2nd Center Bldg.

2,640.80㎡

11

90.2%

68,4650.9%

OfficeKawaguchi Center Bldg.

15,478.43㎡

38

98.7%

503,889

6.6%

OfficeJPR Ueno East Bldg.

6,512.45㎡

8

86.4%

164,313

2.1%

RetailTanashi ASTA

31,121.71㎡

1100.0%

635,400

8.2%

RetailTsurumi fuga 1

9,578.60㎡

1

100.0%

145,200

1.9%

88,631.78㎡

109

96.6%

2,226,622

29.0%

5,206.82㎡

14

100.0%

130,620

1.7%
4.7%

Subtotal

Other
CitiesRental Revenue(yen in% of Total
thousands)

Property Name

Subtotal

GreaterTokyo# ofOccupancy
Tenants

Type

OfficeNiigata Ekinan Center Bldg.

OfficeMeiji Yasuda-Life Osaka Umeda Bldg.

9,600.79㎡

21

91.8%

360,817

OfficeTokyo Tatemono Honmachi Bldg.

7,210.25㎡

10

98.6%

250,747

3.3%

OfficeJPR Park West Takamatsu

2,496.02㎡

23

80.3%

43,914

0.6%

OfficeJPR Takamatsu Bldg.

5,023.53㎡

26

86.2%

91,236

1.2%

OfficeJPR Hakata Bldg.

6,581.15㎡

26

89.3%

153,878

2.0%

OfficeJPR Square Hakata East/West

8,447.48㎡

14

80.7%

172,582

2.2%

OfficeJPR Naha Bldg.

3,947.69㎡

15

87.3%

96,9291.3%

OfficeNorth 33 Bldg.

6,642.98㎡

23

96.0%

171,000

2.2%

OfficePark East Sapporo

7,648.62㎡

23

90.9%

117,962

1.5%

OfficeSompo Japan Sendai Bldg.

7,050.84㎡

10

95.3%

188,734

2.5%

OfficeSompo Japan Wakayama Bldg.

4,891.36㎡

16

93.6%

117,168

1.5%

OfficeTenjin 121 Bldg.

3,292.02㎡

13

96.6%

104,926

1.4%

OfficeSK Hiroshima Bldg.

2,738.06㎡

15

70.4%

55,4300.7%

OfficeJPR Nagoya Sakae Bldg.

5,461.90㎡

20

100.0%

221,395

2.9%

OfficeDojima F Bldg.

3,941.40㎡

9

84.9%

123,693

1.6%

OfficeSemba Fukuoka Bldg.

3,349.57㎡

6

100.0%

94,426

1.2%

RetailJPR Umeda Loft Bldg.

18,586.97㎡

1

100.0%

402,411

5.2%

112,117.45㎡
273,330.52㎡

285
496

92.8%
95.1%

2,897,876
7,685,733

37.7%
100.0%

Subtotal
Total

19

CONSOLIDATED