Corporate Profile
Established on September 14, 2001, Japan Prime Realty Investment Corporation (JPR or theCompany) is a closed-end corporate fund that focuses on a geographically diverse investment
portfolio of office and retail properties. Through its investment activities, JPR has been
awarded high credit ratings from rating agencies, reflecting the Company's high-quality
portfolio, earnings stability and sound financial standing. As of December 31, 2008, JPR had
an investment portfolio totaling 280.61 billion yen on an acquisition basis, 499 tenants and 52
properties, and is recognized as one of the top diversified REITs in Japan.

Contents Investment Highlights

1

Message to Our Unitholders

2

Account Highlights

3

Investment Unit Status

4

New Acquisitions during the 14th Fiscal Period and After

5

Portfolio Topics

8

Property Portfolio

10

Overview of Portfolio Properties

16

Characteristics and Corporate History

23

Overview of the Asset Manager

25

Overview of Asset Management

27

Overview of the Investment Corporation

33

Status of JPR's Assets under Management

34

Capital Expenditures of Owned Real Estate

38

Expenses and Liabilities

39

Acquisition and Sale during the 14th Fiscal Period

41

Overview of Accounting

44

Other

45

Balance Sheets

46

Statements of Income and Retained Earnings

48

Statements of Changes in Net Assets

49

Notes to Financial Statements

50

Report of Independent Auditors

56

Statements of Cash Flows (Information Only)57

JPR Investment Policies (Reference)

59

Investor Information

68

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

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

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

1Message to Our Unitholders
We are delighted to have this opportunity to provide an overview of the asset management andfinancial results of Japan Prime Realty Investment Corporation (JPR) for its 14th fiscal period (July 1,2008 – December 31, 2008).
The JPR portfolio grew to 52 properties, or 280.6 billion yen on an acquisition price basis, as ofthe end of the fiscal period. This was due to the acquisition of Minami Azabu Building, Yurakucho
Ekimae Building (Yurakucho Itocia), Shinjuku Square Tower (additional ownership) and Shinagawa
Canal Building for a total of 9.2 billion yen on an acquisition price basis, while selling NORTH 33
Building for 3.5 billion yen.
As for financing, JPR continued to secure a stable financial status amid a tough fund procurement
environment, through such measures as partial repayment of short-term borrowings in November
2008 before maturity and re-establishment of a commitment line of credit.
As for our financial results for the 14th fiscal period, we posted operating revenues of 11,171 million
yen, recurring profits of 4,433 million yen and net income of 4,432 million yen. The full-period
operations of properties acquired during the previous fiscal period as well as the contribution ofproperties acquired during the 14th fiscal period contributed to these results.
As a result, the cash distribution per unit was set at 7,092 yen.
We expect that the environment surrounding the industry will continue to be severe due to theturmoil that has spread throughout the financial market, triggered by the subprime issue, and thedeteriorating real estate market conditions. Given the prospects, JPR canceled the acquisition of theKM Fukugo Building (tentative name) scheduled to be acquired in the 15th fiscal period based ona stance of maintaining the soundness of the entire portfolio and other considerations. We deeply
apologize for any concern that this may have caused our unitholders.
JPR will continue working with Tokyo Realty Investment Management, Inc. our asset managementcompany, to realize stable growth of our portfolio over the medium to long term by conducting
prudent and careful asset management while maintaining a consistent focus on compliance. With
these efforts and commitment, we endeavor to meet the expectations of our unitholders.
We ask for your continued understanding and support of our operations.

Hirohito Kaneko
Executive Officer
Japan Prime Realty Investment Corporation2

Account Highlights(All amounts in millions of yen unless otherwise stated)
10th Fiscal Period
ended
December 2006

11th Fiscal Period
endedJune 2007

12th Fiscal Period
ended
December 2007

13th Fiscal Period
endedJune 2008

14th Fiscal Period
ended
December 2008

Operating revenues

9,088

10,056

10,44910,83011,171

Recurring profits

3,643

4,373

4,170

4,452

4,433

Net income

3,642

4,372

4,169

4,451

4,432

Total cash distributions

3,642

4,372

4,169

4,451

4,432

Total assets

244,691

271,398

278,842

303,459309,253

Total unitholders' equity

119,074

161,098

160,895

161,177

161,158

48.7%

59.4%

57.7%

53.1%

52.1

Unitholders' equity per unit (yen)224,668

257,757

257,432

257,883

257,853

Cash distribution per unit (yen)

6,873

6,996

6,671

7,122

7,092

Equity ratio

Operating Revenues and Net Income

12,000Total Assets and Total Unitholders' Equity

35,000Cash Distribution per Unit

8,000

30,000
9,000

6,000

25,00020,000
4,000

6,000
15,00010,000
2,000

3,000
5,000

0
10th
11th
12th
13th
14th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

0
10th
11th
12th
13th
14th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Operating revenues (million yen)

Total assets (million yen)

Net income (million yen)

Total unitholders' equity (million yen)

10th
11th
12th
13th
14th
Fiscal Fiscal Fiscal Fiscal Fiscal
Period Period Period Period Period

Cash distribution (yen)3Investment Unit Status
Historical Unit Price
Trading Volume (units)
Unit Price (yen)Trading
VolumeAs of February 6, 2009Market capitalization: ¥137.6 billion
High: ¥564,000 (May 7, 2007)
Low: ¥130,300 (October 28, 2008)
Unit price at end of 14th Fiscal Period: ¥210,200 (December 30, 2008)

16,00014,00012,000580,000
520,000
460,000

PO
Offering: ￥449,820

10,000Unit
Price400,000
340,000

8,000
6,000

PO
Offering: ￥237,160

4,000

PO
Offering: ￥272,440

280,000
220,000

ListedTokyo Stock Exchange
Offering: ￥200,000

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

Jun

Jan

. 6,

200

3

July

1

Jan

. 5,

200

July

4

1

160,000

Jan

. 4,

200

July

5

1

Jan

. 4,

200

6

July

Jan

. 4,

1

July
1
200
7

Jan
.

100,000
July Feb
1 . 6, 2
008
009

4, 2

(Note) Unit prices are based on closing prices.

Breakdown of Unitholders at End of Period

Number ofUnitholders

Units
700,000

28,000600,000
530,000 units
500,000

625,000 units

625,000 units

625,000 units

625,000 units

8.43%
52,723 units

7.26%
45,388 units

7.05%
44,118 units

7.26%
45,416 units

11.93%
74,598 units

11.78%
73,686 units

11.84%
74,057 units12.15%
75,986 units

9.61%
50,975 units
13.84%
73,381 units

24,00020,00024.42%
152,632 units

22.10%
138,141units

24.57%
153,613 units

25.63%
160,245 units

400,000

16,00013.57%
71,947 units

300,000

12,000200,000

8,000
62.96%
333,697 units

56.52%
353,294 units

57.52%
359,538 units56.51%
353,212 units

54.93%
343,353 units

100,000

0

4,000

10th Fiscal Period

11th Fiscal Period

Financial Institutions(including securities firms)

412th Fiscal Period

ForeignInvestors

13th Fiscal Period

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

Individuals

14th Fiscal Period0

Number of Individual
Investors

New Acquisitions during the 14th Fiscal Period and After
Properties Acquired in the 14th Fiscal Period

A 11

Shinjuku Square Tower (additional ownership)

Location

Shinjuku Ward, Tokyo

Acquisition Date

Acquisition Price

Site Area

September 26, 2008￥180 million
8,409.52m

2(entire redevelopment project)
Total Floor Space
78,796.00m2(entire redevelopment project)
Structure

S/RC/SRC

Completed

Floors

B4/30F
October 1994

A 15

Minami Azabu Building

Location

Acquisition Date

Acquisition Price

Site Area

Minato Ward, Tokyo
July 14, 2008
￥3,760 million
778.09m

2

Total Floor Space

4,570.63m

2Structure

S

Completed

Floors9F

June 1992

5

A 16

Shinagawa Canal Building

Location

Acquisition Date

Acquisition Price

Site Area

Total Floor Space

Structure

S

Completed

Minato Ward, Tokyo
December 19, 2008
￥1,870 million
828.82m

2

5,216.21m

2

Floors

B1/8F

July 2008

A 5

Yurakucho Ekimae Building (Yurakucho Itocia)

Location

Acquisition Date

Acquisition Price

Site Area

Chiyoda Ward, Tokyo
August 27, 2008
￥3,400 million
6,808.12m

2

Total Floor Space

71,957.65m

2Structure

S/SRS

Completed

6

Floors

B4/20F

October 2007

Property to be Acquired in the 17th Fiscal PeriodA

Sendagaya Yonchome Building (tentative name)Location

Shibuya Ward, Tokyo

Acquisition Date

Acquisition PriceMay 2010 (planned)￥15,050 million (Note)

Site Area

2,217.49m

2

Total Floor Space

8,146.53m

2

Floors

Structure

S

8F

CompletedMay 2009 (planned)
Note: In the event profitability improves as a vesult of efforts by the seller
to attract tenants, etc. the acquisition price is subject to revision
to a maximum of 16,500 million yen based on a predetermined
formula.

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

Acquisition Date

Investment
Amount(unit)

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

November 9, 2007

6,120

340,000

3

By the end ofJune 2009 (planned)

24,4801,643,000

12April 2010 (planned)

51,000TBD

25Location

Acquisition Price

Site Area

Nagoya City, Aichi￥1,870 million
7,463.10m (Note 2)
2

Total Floor Space

49,788.45m (Note 3)
2

Structure

S

Completed

FloorsB1/24F

April 2009 (planned)

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

7

Portfolio Topics
Portfolio Growth
Occupancy rate (%)

100.0
90.0

Total acquisition
price (billion yen)

320
280

Total acquisition priceTotal leasable floor space

240
200
160
120
80
40
0

End ofNov.
2001

End ofJun.
2002

End ofDec.
2002

End ofJun.
2003

End ofJun.
2004

End ofDec.
2004

Total acquisition
price (billion yen)

40.73

92.18

94.59

125.79139.64163.65179.62

Total leasable
floor space (m2 )

94,935.49

162,739.50

168,987.78

201,808.72

218,734.67

256,329.13

273,330.52

Occupancy rate
(%)

96.3

94.1

93.4

93.5

92.7

93.2

95.1

Properties

13

25

27

30

32

38

42

Total numberof tenants

133

281

311

324

357

437

496

(Note 1)

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

(Note 2)Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees.
Accordingly, the leasable floor space of the building as it relates to JPR's ownership is calculated by multiplying the total contracted areas of offices, shops
and warehouses the management company can sublease to sub-lessees by the rent allocation ratio of JPR (39.70457% up to the end of June 2008 and with the additional
acquisition in September 2008, 40.31465% for the end of December 2008) to arrive at the rent allocated to JPR.
The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent allocation ratio.
Each figure has been rounded to the second decimal point.
The number of sub-lessees of the Shinjuku Square Tower is also regarded as the number of tenants.

Portfolio Diversification by Region
Value breakdown by acquisition price

Other Cities

Tokyo CBDs

26.8%
45.4%
( ￥75,277 million)( ￥127,411million)

Greater Tokyo

27.8%( ￥77,931 million)

Tokyo CBDs

Value breakdownby monthly rental revenue at period end
Tokyo CBDs

Other Cities

28.1%( ￥480 million)

39.7%

Value breakdown by acquisition price)( ￥99,585 million

64.5%

)

Greater Tokyo

Other Cities

Value breakdownby leased floor space at period end

35.1%(131,570.11 m 2)

Tokyo CBDs

25.6%

(95,837.18 m 2)
Greater Tokyo

39.3%

32.2%

(147,367.50 m 2 )( ￥550 million)

Office buildings

Value breakdownby monthly rental revenue at period end

Retail properties
Value breakdownby leased floor space at period end

Retail properties

Retail properties

35.5%

Greater Tokyo

Other Cities( ￥678 million

Portfolio Diversification by Asset Class

28.7%
Office buildings( ￥181,034 million)

8

End ofDec.
2003( ￥491 million)

71.3%

Retail properties

Office buildings( ￥1,218 million)

43.8%(164,055.49 m 2 )Office buildings

56.2%(210,719.30 m 2 )Total leasable
floor space (m2)

400,000

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

End ofDec.
2005

End ofJun.
2006

End ofDec.
2006

End ofJun.
2007

End ofDec.
2007

End of
Jun.
2008

0

End ofDec.
2008

197.65202.66209.22222.48245.39251.90275.10280.61

281,408.97

308,205.26

315,156.84

337,382.05

361,574.77

373,609.99

383,491.03

383,215.57

95.4

97.2

98.0

98.6

99.0

98.4

97.5

96.4

42

42

44

46

48

49

50

52

459

441

462

479

491

517

537

499

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

Major Tenants(As of December 31, 2008)

Tenant＃Name of Property

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

1

ABC Development Corporation

Housing Design Center Kobe

35,444.13

9.5%

2

The Seiyu, Ltd.

Tanashi ASTA

31,121.71

8.3%

3

Tokyo Tatemono Co., Ltd.

Shinjuku Center Building,
Arca East, Kawasaki Dice Bldg.

22,181.66

5.9%

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

5.3%

5The Loft Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

5.0%

6

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

11,268.27

3.0%

7Olympic Corporation

Musashiurawa Shopping Square

9,558.51

2.6%

8

Tower Records Japan, Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

2.2%

7,287.86

1.9%

7,040.22

1.9%

9

Mitsubishi UFJ Lease & Finance Co., Ltd.

10

Sompo Japan Insurance Inc.

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

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

9

Property Portfolio

A Tokyo CBDs

Ueno

Shinjuku Ward

A-14
A-11

Shinjuku

A-12
A-4

A-5
A-9 Chiyoda
Ward
A-4
Tokyo

Harajuku

A-3

A-5

A-1

ShibuyaMinato Ward

A-2

Tamachi

A-15

A-6

Shinagawa

GotandaA-7
Ohsaki

A-10

A-16

B-5

A-3

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

A-1 Kanematsu Bldg.

A-13 Across Shinkawa Bldg. Annex

A-2 Kanematsu Bldg. Annex

A-14 Shinjuku Center Bldg.

A-3 JPR Ningyo-cho Bldg.

A-15 Minami Azabu Bldg.

A-4 Shin-Kojimachi Bldg.

A-16 Shinagawa Canal Bldg.

A-5 JPR Crest Takebashi Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-6 MS Shibaura Bldg.

A-2

JPR Daikanyama

A-7 Gotanda First Bldg.

A-3

JPR Jingumae 432

A-8 Fukuoka Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-9 JPR Ichigaya Bldg.

A-5

Yurakucho Ekimae Bldg.
(Yurakucho Irocia)

A-11 Shinjuku Square Tower

A-

Sendagaya Yonchome Bldg.

(tentative name)

A-12 BYGS Shinjuku Bldg.

Minamiurawa

Musashiurawa

Kawaguchi

B-6
B-3

SAITAMA

TOKYO
Tanashi

Kinshicho

A-10 Oval Court Ohsaki Mark West 17th Fiscal Period Acquisition (Planned)

Shinagawa Ward

B Greater Tokyo

B-1

IchigayaA-

Shibuya Ward

B-8

B-7

Ikebukuro

B-1

CHIBA

B-9 Ueno
B-7 B-1

Shinjuku

TachikawaTokyo

Kinshicho

ShibuyaChiba

B-2

ShinagawaMusashikosugi

B-4
KANAGAWA

B-5

KawasakiB-6

Shin-Yokohama
Yokohama
Nihon-Odori

B-10
10

B-3

Kamiooka

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

C Other Cities
C-1

Niigata Ekinan Center 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-16 JPR Nagoya Sakae Bldg.
C-18 JPR Hakata-chuo Bldg.
C-19 Mitsubishi UFJ Lease & Finance

SENDAI

Nagoya Head Office Bldg.

C-2

Strasse Ichibancho

C-4

Housing Design Center Kobe

C-12
C-2

NIIGATA

C-1

OSAKA
See below
KOBE

C-4

FUKUOKA

C-7
C-14
C-18

NAGOYA

WAKAYAMA

C-16
C-19

C-13

NAHA

C-9

C

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

Chiyoda Ward
Chuo Ward
Minato Ward

Osaka

C-2

Tokyo CBDs
C-17

Shinjuku Ward
Shinagawa Ward
Shibuya Ward

Kitahama

Yodoyabashi

All other areas of Tokyo

C-4
C-2

Meiji Yasuda Life Osaka Umeda Bldg.

C-4

Tokyo Tatemono Honmachi Bldg.

C-17 JPR Dojima Bldg.
C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.

Greater Tokyo

and Chiba, Kanagawa andSaitama Prefectures

HonmachiC-3
Shinsaibashi

All other areas in Japan
Nanba

Other Cities

11Location

Asset

Category

Class

Tokyo
CBDs

No.

Property Name

Location

Completed

Acquired

OfficeA-1

Kanematsu Bldg.

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

1993.2

2001.12

OfficeA-3

JPR Ningyo-cho Bldg.

Chuo Ward, Tokyo

1989.122001.11

OfficeA-4

Shin-Kojimachi Bldg.

Chiyoda Ward, Tokyo

1984.10

2001.11
2002.112004.11

OfficeA-5

JPR Crest Takebashi Bldg.

Chiyoda Ward, Tokyo

1999.92002.6

OfficeA-6

MS Shibaura Bldg.

Minato Ward, Tokyo

1988.2

2003.3

OfficeA-7

Gotanda First Bldg.

Shinagawa Ward, Tokyo

1989.7

2003.7

OfficeA-8

Fukuoka Bldg.

Chuo Ward, Tokyo

1990.5

2003.10
2005.4

OfficeA-9

JPR Ichigaya Bldg.

Chiyoda Ward, Tokyo

1989.3

2004.5

OfficeA-10

Oval Court Ohsaki Mark West

Shinagawa Ward, Tokyo

2001.6

2004.6

OfficeA-11

Shinjuku Square Tower

Shinjuku Ward, Tokyo

1994.10

2004.72008.9

OfficeA-12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

1985.4

2004.112005.4

OfficeA-13

Across Shinkawa Bldg. Annex

Chuo Ward, Tokyo

1994.6

2004.11

OfficeA-14

Shinjuku Center Bldg.

Shinjuku Ward, Tokyo

1979.10

2008.3

Office

A-15

Minami Azabu Bldg.

Minato Ward, Tokyo

1992.6

2008.7

Office

A-16

Shinagawa Canal Bldg.

Minato Ward, Tokyo

2008.72008.12RetailA-1

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

1992.2

2003.6

RetailA-2

JPR Daikanyama

Shibuya Ward, Tokyo

2002.7

2004.10RetailA-3

JPR Jingumae 432

Shibuya Ward, Tokyo

2006.2

2006.3Retail

A-4

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

2007.1

2007.32008.4RetailA-5

Yurakucho Ekimae Bldg.

Chiyoda Ward, Tokyo

2007.10

2008.8(Yurakucho Itocia)

Subtotal (21 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg. and Tanashi ASTA do notinclude the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

12

(As of December 31 , 2008)

Acquisition
Price (1)(millionsof yen)Percentage

Ownership

Site Areaof Total(3) (%)(m 2)

16,276

5.8

79.4

2,874

1.0

2,100

Percentage

Total Leasable
Floor Space(m 2 )(JPR's portion)

Occupancy

No. ofRate (2)Tenants

1,751.13

7,994.02

100.0

8487,5444.4

79.4

679.06

2,291.13

100.0

1110,927

1.0

0.7

100.0

550.06

2,791.88

100.0

4111,876

1.0

2,420

0.9

77.2

657.802,105.44
901.36312.533,319.33

100.0
100.0
100.0

11

76,83532,124
12,288

0.7
0.3
0.1

4,000

1.4

100.0

636.903,265.34

100.0

9146,076

1.3

11,2004.0

58.0

8,992.18

14,429.09

100.0

8

597,666

5.3

2,920

1.0

59.6

1,551.19

4,243.58

100.0

2

141,791

1.3

2,920

1.0

26.2

1,302.17

1,250.06
687.34

100.0
100.0

1

87,3560.8(2)1,937.40

RentalRevenue(thousandsof yen)41,673ofTotal (2)

0.4

5,100

1.8

100.0

1,058.04

4,186.09

76.3

7

187,449

1.7

3,500

1.2

23.9

4,006.00

4,088.44100.0

4200,060

1.8

10,1803.6

38.8

8,409.52

10,982.03
168.74
11,150.77

96.4

21

320,728
2,587

2.9

11,821

4.2

75.0

3,522.46

11,357.50

95.7

23

495,011

4.4

710

0.3

35.5

858.481,253.39

100.0

452,4560.5

21,000

7.5

8.6

14,917.11

8,041.63

91.2

21

542,854

4.9

3,760

1.3

100.0

778.094,570.63

100.0

1(Note 5)(Note 5)

1,870

0.7

45.6

828.82

5,216.21

14.8

1

147

0.0

12,0004.3

100.0

1,010.47

8,076.85

100.0

1345,576

3.1

2,160

0.8

100.0

277.12653.99100.0

439,881

0.4

4,460

1.6

100.0

218.21

1,027.33

100.0

597,930

0.9

2,740

1.0

12.5

2,578.69

2,347.81

100.0

178,306

0.7

3,400

1.2

1.9

6,808.12

1,101.92

100.0

1(Note 5)(Note 5)

127,411

45.4

96.4

0.0

92,286.83

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of othersectional owners, etc. except for the following properties:
MS Shibaura Building:

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

13

Location

Asset

Category

Class

No.

OfficeB-1

Arca East

OfficeB-2

OfficeGreaterTokyo

Location

Completed

Acquired

Sumida Ward, Tokyo

1997.3

2001.11

JPR Chiba Bldg.

Chiba City, Chiba

1991.1

2001.12B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama City, Kanagawa

1989.10

2001.11

OfficeB-5

Shinyokohama 2nd Center Bldg.

Yokohama City, Kanagawa

1991.8

2002.9

OfficeB-6

Kawaguchi Center Bldg.

Kawaguchi City, Saitama

1994.2

2004.2

OfficeB-7

JPR Ueno East Bldg.

Taito Ward, Tokyo

1992.10

2004.3

Property Name

OfficeB-8

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

1994.122005.92007.2

OfficeB-9

Rise Arena Bldg.

Toshima Ward, Tokyo

2007.1

2007.3

OfficeB-10

Yume-ooka Office Tower

Yokohama City, Kanagawa

1997.32007.7RetailB-1

Tanashi ASTA

Nishitokyo City, Tokyo

1995.2

2001.11RetailB-3

Cupo-la Main Bldg.

Kawaguchi City, Saitama

2006.1

2006.3Retail

B-4

JPR Musashikosugi Bldg.

Kawasaki City, Kanagawa

1983.32006.9Retail

B-5

Musashiurawa Shopping Square

Saitama City, Saitama

2005.10

2007.3RetailB-6

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa

2003.82007.4

OfficeC-1

Niigata Ekinan Center Bldg.

Niigata City, Niigata

1996.3

2001.11

OfficeC-2

Meiji Yasuda Life Osaka Umeda Bldg.

Osaka City, Osaka

2000.6

2001.12

OfficeC-4

Tokyo Tatemono Honmachi Bldg.

Osaka City, Osaka

1970.2

2001.11

OfficeC-7

JPR Hakata Bldg.

Fukuoka City, Fukuoka

1985.6

2001.11

OfficeC-9

JPR Naha Bldg.

Naha City, Okinawa

1991.10

2001.11

OfficeC-12

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

1997.12

2002.6

OfficeC-13

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama

1996.7

2002.6

OfficeC-14

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

2000.7

2002.6

OfficeC-16

JPR Nagoya Sakae Bldg.

Nagoya City, Aichi

1993.10

2003.9

OfficeC-17

JPR Dojima Bldg.

Osaka City, Osaka

1993.2

2004.1

OfficeC-18

JPR Hakata-Chuo Bldg.

Fukuoka City, Fukuoka

1991.3

2004.6

OfficeC-19

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City, Aichi

B 2003.1
P 1986.12

2005.3RetailC-1

JPR Umeda Loft Bldg.

Osaka City, Osaka

1990.4

2003.5-7

RetailC-2

Strasse Ichibancho

Sendai City, Miyagi

2002.10

2005.2RetailC-3

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

2003.2

2005.5RetailC-4

Housing Design Center Kobe

Kobe City, Hyogo

1994.6

2005.9RetailC-5

JPR Chayamachi Bldg.

Osaka City, Osaka

1994.6

2006.8Subtotal (14 Properties)

Other
CitiesSubtotal (17 Properties)

B Building
P ParkingTotal (52 Properties)
Notes: (1) Acquisition price does not include miscellaneous expenses of acquisition (real estate transaction brokerage fee andconsumption tax).
(2) Percentages and ratios are rounded to the first decimal point.
(3) Ownership indicates the ratio of proprietary ownership of JPR to the total proprietary ownership stipulated in the
management regulations, etc. As for cases that proprietary ownership includes parking lots, figure in parentheses
indicates ratio calculated excluding parking lots. In addition, ratio for Rise Arena Bldg. and Tanashi ASTA do notinclude the residential portion and ratio for Yume-ooka Office Tower is that of for the business tower only.

14

(As of December 31 , 2008)

Acquisition
Price (1)(millionsof yen)
5,880
2,350
2,927
920
8,100
3,250

Percentage

Ownership

Site Areaof Total(3) (%)(m 2 )

0.8
1.0
0.3
2.9
1.2

38.3
100.0
100.0
50.0
86.5
100.0

Percentage

Occupancy

No. ofRate (2)Tenants

3,755.01

7,022.76

100.0

6

295,632

2.6

1,382.35

5,566.59

86.1

28

133,987

1.2

1,100.59

6,066.53

100.0

12

147,0561.3

841.712,641.19

93.8

12

74,2080.7

4,524.61

15,461.98

97.6

38

490,223

4.4

1,242.97

6,512.45

91.6

8

197,416

1.8

100.0
74.9

19

60,658102,246

0.5
0.9

(2)
2.1

RentalRevenue(thousandsof yen)Total Leasable
Floor Space(m 2 )(JPR's portion)ofTotal (2)

3,188

1.1

47.9

2,047.22

1,747.13
2,980.90
4,728.03

5,831

2.1

25.2

9,377.28

6,023.39

100.0

1242,423

2.2

6,510

2.3

48.8

12,011.00

12,009.75

92.4

34

342,855

3.1

10,2003.6

43.6

12,326.30

31,121.71

100.0

1

596,400

5.3

2,100

0.7

16.7

15,008.28

5,963.00

100.0

1(Note 3)(Note 3)

7,260

2.6

100.0

4,761.62

19,740.95

100.0

1

(Note 3)(Note 3)

4,335

1.5

50.0

8,317.99

14,960.69

100.0

3

129,061

1.2

15,0805.4

46.6

4,475.45

13,089.96

99.2

20

484,614

4.3

77,931

27.8

2,140

0.8

32.9

2,706.99

5,205.78

97.1

10

129,610

1.2

8,300

3.0

33.3

5,999.33

9,600.37

99.4

26

393,998

3.5

4,150

1.5

72.0

1,432.64

7,210.25

98.7

9248,481

2.2

2,900

1.0

100.0

1,214.63

6,581.15

97.7

27

164,107

1.5

1,560

0.6

100.0

959.87

3,947.70

97.9

18

115,949

1.0

3,150

1.1

100.0

1,895.67

7,118.60

96.9

15

207,547

1.9

1,670

0.6

100.0

1,128.45

4,874.91

91.7

15

116,943

1.0

2,810

1.0

52.2

1,164.39

3,281.1298.3

12119,355

1.1

4,550

1.6

100.0

992.31

5,461.90

95.3

20

231,368

2.1

2,140

0.8

100.0

668.11

3,941.40

83.4

8

121,976

1.1

1,920

0.7

100.0

680.63

3,349.57

100.0

690,357

0.8

4,137

1.5

100.0

1,610.38

7,123.07

100.0

1

193,608

1.7

13,0004.6

100.0

3,518.68

18,586.97

100.0

1

402,411

3.6

4,200

1.5

100.0

648.81

4,136.95

0.0

0

5,430

1.9

100.0

609.315,303.98

100.0

1(Note 3)(Note 3)

7,220

2.6

100.0

3,994.47

35,444.13

100.0

1

(Note 3)(Note 3)

6,000

2.1

100.0

592.452,484.39

100.0

7142,171

1.3

75,27726.8

140,295.22

280,619100.0

383,491.03

96.4

499

11,171,677

100.0

150,908.98

Notes: (4) Site area and total leasable floor space indicate the entire site area and entire floor space including portions of otherowners, etc. except for the following properties:
The above site area indicates the area of the property and Trinity Shibaura that has beendeveloped in an integrated manner
Shinjuku Square Tower: The above site area and total leasable floor space indicate the area of the entire
redevelopment project
The above site area and total leasable floor space indicate the site area and floor space of theRise Arena Building:entire redevelopment project including the residential tower
The above site area indicates the area of the entire redevelopment projectCupo-la Main Bldg.:
MS Shibaura Building:(5) The Benetton Shinsaibashi Bldg. and the Housing Design Center Kobe are leased to single tenants.
JPR was unable to obtain the tenants' approval to disclose rental information.

15

Overview of Portfolio Properties

Properties acquired in the 14th Fiscal Period are on page 5

A 1

Kanematsu Bldg.

A 2

Kanematsu Bldg. Annex

Chuo Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

Total Floor Space

4,351.46m

14,995.09m

22Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B2/13F
February 1993

A 3

JPR Ningyo-cho Bldg.

SRC B1/8F

February 1993

A 4

Shin-Kojimachi Bldg.

Chuo Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

Total Floor Space

5,152.98m

4,117.70m

22Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B1/8F

December 1989

A 5

JPR Crest Takebashi Bldg.

A 6
Minato Ward, Tokyo
Acquisition Price

Site Area

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

8,992.18m

2

2

Total Floor Space

31,020.21m

4,790.68m

2Completed

SRC/RC/S B2/13F

SRC B1/9F

A 7

Gotanda First Bldg.

2

Structure/Floors
Completed

September 1999

February 1988

A 8

Fukuoka Bldg.

Shinagawa Ward, Tokyo

Chuo Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

2

Total Floor Space

10,553.34m

1,302.17m

2

Total Floor Space

11,627.74m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC B2/11F

16

October 1984

Acquisition Price

Structure/Floors

SRC B1/9F

MS Shibaura Bldg.

Chiyoda Ward, Tokyo

Total Floor Space

657.80m2

2

Total Floor Space

679.06m

2

2

Total Floor Space

July 1989

2

SRC B2/10F
May 1990

A 9

JPR Ichigaya Bldg.

A 10

Oval Court Ohsaki Mark West

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

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

2

2

Total Floor Space

Total Floor Space

28,575.80m

5,888.82m

22Structure/Floors
Completed

Structure/Floors

SRC B1/9F

Completed

March 1989

A 11

Shinjuku Square Tower

S/SRC B2/17F
June 2001

A 12

BYGS Shinjuku Bldg.

Shinjuku Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price￥10,000 million

Site Area

Acquisition Price￥11,821 million

8,409.52m

2Site Area(entire redevelopment project)

Total Floor Space

3,522.46m

2

Total Floor Space

78,796.00m

2

25,733.10m(entire redevelopment project)

Structure/Floors

Structure/Floors

Completed

Completed

S/RC/SRC B4/30F
October 1994

A 13

Across Shinkawa Bldg. Annex

SRC B2/14F
April 1985

A 14

Shinjuku Center Bldg.

Chuo Ward, Tokyo

Shinjuku Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥710 million
858.48m￥21,000 million
14,917.11m

2

Total Floor Space

5,535.90m

2

Total Floor Space

176,607.89m

22Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/10F

SRC/RC/S B5/54F

June 1994

JPR Shibuya Tower Records Bldg.

A(Retail)1

October 1979A

JPR Daikanyama (Retail)2

Shibuya Ward, Tokyo

Shibuya Ward, Tokyo

Acquisition Price

Acquisition Price

Site Area

Site Area￥12,000 million
1,010.47m￥2,160 million

2

Total Floor Space2

8,449.56m

Total Floor Space

2

Structure/Floors

Structure/Floors

Completed

Completed

SRC/S B3/8F

February 1992

277.12m

2668.09m2

RC B2/2F
July 2002

17

A

JPR Jingumae 432 (Retail)3

Shinjuku Ward, Tokyo

Shibuya Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥4,460 million
218.21m￥2,740 million
2,578.69m

2

2

Total Floor Space

Total Floor Space

24,617.65m

2

1,066.81m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC/RC B3/14F

S/SRC B1/7F

January 2007

February 2006

B

Arca East

1

B

JPR Chiba Bldg.

Sumida Ward, Tokyo
Acquisition Price

Acquisition Price

Site Area

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

2

1,382.35m

29,072.57m

2

Total Floor Space

34,281.86m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B3/19F
March 1997

B

JPR Yokohama Nihon Odori Bldg.

3

S/SRC B1/13F
January 1991

B

Shinyokohama 2nd Center Bldg.

Acquisition Price

Acquisition Price

Site Area

Site Area￥2,927 million￥920 million

2

Total Floor Space

7,781.93m

29,146.52m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC B1/11F

October 1989

B 6

Acquisition Price
Site Area

S/SRC B2/12F
August 1991

B

JPR Ueno East Bldg.

Kawaguchi City, Saitama￥8,100 million
4,524.61m

28,420.85m

Acquisition Price
Site Area￥3,250 million
1,242.97m

2

Total Floor Space

8,490.44m

22Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B2/15F

February 1994

7

Taito Ward, Tokyo2

Total Floor Space

841.71m

2

1,100.59m

Kawaguchi Center Bldg.

5

Yokohama City, Kanagawa

Yokohama City, Kanagawa

Total Floor Space

2

Chiba City, Chiba

Total Floor Space

18

A 4

Shinjuku Sanchome East Bldg. (Retail)

S/SRC B1/8F

October 1992

B

Tachikawa Business Center Bldg.

8

B 9

Rise Arena Bldg.

Toshima Ward, Tokyo

Tachikawa City, Tokyo
Acquisition Price

Acquisition Price

Site Area

Site Area￥3,188 million
2,047.22m

2

Total Floor Space

14,706.36m

2￥5,831 million
9,377.28m

Total Floor Space
Structure/Floors

Completed

Completed

January 2007

B

Tanashi ASTA (Retail)

B 10

1

Nishitokyo City, Tokyo

Yokohama City, Kanagawa
Acquisition Price￥6,510 million
12,011.00m

2Total Floor Space

185,974.87m

2Acquisition Price￥10,200 million

Site Area

12,326.30m

2

Total Floor Space

80,675.27m

Structure/Floors

Structure/Floors

Completed

Completed

S/SRC/RC B3/27F
March 1997

Cupo-la Main Bldg. (Retail)2

RC/SRC/S B3/42F

S/SRC B1/12F

December 1994

Site Area

91,280.94m（including residential tower)

Structure/Floors

Yume-ooka Office Tower2（entire redevelopment project)

B 3

SRC B2/17F

February 1995

B

JPR Musashikosugi Bldg. (Retail)Kawaguchi City, Saitama

2

4

Kawasaki City, Kanagawa

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

2（entire redevelopment project)

Total Floor Space

48,321.96m

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

2

Total Floor Space

18,394.32m

2Structure/Floors

Structure/Floors

Completed

Completed

SRC/RC/S B1/6F

S/RC/SRC B2/10F
January 2006

Musashiurawa Shopping Square

B(Retail)March 1983

Kawasaki Dice Bldg. (Retail)5

Saitama City, Saitama

B

Acquisition Price

Site Area

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

2

Structure/Floors
Completed

28,930.36m

2

S B1/4F

October 2005

6

Kawasaki City, Kanagawa

Acquisition Price

Total Floor Space2

4,475.45m

2

Total Floor Space
Structure/Floors

36,902.01m

2S/SRC/RC B2/11F

Completed

August 2003

19

C

Niigata Ekinan Center Bldg.

Meiji Yasuda Life Osaka Umeda Bldg. C

1

Osaka City, Osaka

Niigata City, Niigata
Acquisition Price

Acquisition Price

Site Area

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

2

2

Total Floor Space

Total Floor Space

52,982.94m

19,950.42m

2Structure/Floors

Structure/Floors

Completed

Completed

S/SRC B1/10F
March 1996

Tokyo Tatemono Honmachi Bldg. C

4C

Acquisition Price

Site Area

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

22Completed

Total Floor Space

9,828.73m

2

S/RC B1/12F

Completed

June 1985

February 1970

C

9

C 12

Sompo Japan Sendai Bldg.

Naha City, Okinawa

Sendai City, Miyagi

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,560 million
959.87m

2

Total Floor Space

Completed

10,783.52m

22Structure/Floors
Completed

SRC B1/12F

December 1997

October 1991

C 13

1,895.67m

2

SRC/S 12F

Sompo Japan Wakayama Bldg.

￥3,150 million

Total Floor Space

5,780.71m

Structure/Floors

C 14

Tenjin 121 Bldg.

Wakayama City, Wakayama

Fukuoka City, Fukuoka

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,670 million
1,128.45m

2

Total Floor Space

6,715.07m

Structure/Floors
Completed2

S 9F
July 1996

2

Structure/Floors

SRC B3/9F

JPR Naha Bldg.

7

Fukuoka City, Fukuoka

14,619.52m

20June 2000

Acquisition Price

Total Floor Space

2

S/SRC B2/31F

JPR Hakata Bldg.

Osaka City, Osaka

Structure/Floors

2￥2,810 million
1,164.39m

2

Total Floor Space

8,690.95m

Structure/Floors
Completed

2

S/SRC 13F
July 2000

C 16

JPR Nagoya Sakae Bldg.

C 17

JPR Dojima Bldg.

Osaka City, Osaka

Nagoya City, Aichi
Acquisition Price￥4,550 million

Site Area

Acquisition Price

992.31m

2

Total Floor Space

Site Area

7,340.18m

Structure/Floors
Building
Parking
Completed
Building
Parking

Total Floor Space

January 2003
December 1986

5,696.01m

2Structure/Floors
CompletedFukuoka City, Fukuoka

October 1993

C 19
Nagoya City, Aichi

Acquisition Price

Acquisition Price

Site Area

Site Area￥1,920 million
680.63m￥4,137 million
1,610.38m

2

2

3,874.81m

Total Floor Space

10,201.44m

2Structure/Floors
Completed

SRC 8F

February 1993C

JPR Umeda Loft Bldg. (Retail)1￥13,000 million
3,518.68m

217,897.56m

Structure/Floors
Completed2

April 1990

3

Site Area

648.81m

2

Total Floor Space

3,445.80m

2Completed

RC/S B1/8F

October 2002

C

4

Acquisition Price

609.31m￥7,220 million

Site Area

Total Floor Space

33,877.71m

22

S B2/10F

February 2003

3,994.47m

2

25,303.98m

Completed￥4,200 million

Kobe City, Hyogo￥5,430 million

Structure/Floors

2

Acquisition Price

Housing Design Center Kobe (Retail)Acquisition Price

Total Floor SpaceMarch 1991

C

Osaka City, Osaka

Site Area

SRC B1/9F

Structure/Floors

SRC B1/8F

Benetton Shinsaibashi Bldg. (Retail) C

Completed2

Sendai City, Miyagi

Acquisition Price

Total Floor Space

Structure/Floors

Strasse Ichibancho (Retail)Osaka City, Osaka

Site Area

SRC B2/9F

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

C 18

Total Floor Space668.11m

2

2

S/ B1/11F
S 1F

JPR Hakata-Chuo Bldg.

￥2,140 million

Structure/Floors

SRC/S B2/11F

Completed

June 1994

21

JPR Chayamachi Grande Bldg. (Retail) C

5Osaka City, Osaka
Acquisition Price￥6,000 million

Site Area

592.45m

2

Total Floor Space

3,219.36m

Structure/Floors
Completed

22

2

S/SRC 9F
June 1994

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

Corporate History
Date

Description

September 6, 2001

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

September 14, 2001

Japan Prime Realty Investment Corporation was established

November 16, 2001

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

January 22, 2002

Investment unit split (2.5 units for 1 existing unit)

June 14, 2002

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

23

Members of the Board (As of December 31, 2008)

Executive Officer

Hirohito Kaneko
Dec. 2001
Apr. 1979
Apr. 1977

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

Supervising Officer

Sosuke Yasuda
Jan. 2009
Apr. 2008
Jan. 2008
Oct. 2006
Jun. 2006
Jun. 2005
Sep. 2001
Oct. 1999
Jul. 1993
Feb. 1983
Jun. 1980
Dec. 1975
Apr. 1968

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

Supervising Officer

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

24

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

Tokyo Realty Investment Management, Inc. (TRIM)

Core Business

Asset management for investment corporation

Capitalization

350 million yen

Shareholders

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

History

April 28, 2000:

Founded

October 13, 2000:

Approved for real estate transaction service

March 16, 2001:

Approved as discretionary transaction agent

June 20, 2001:

Approved for asset management of investment corporation

September 30, 2007:

Registered as investment management business

November 28, 2007:

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

Services

Organization
Shareholders Meeting
Auditors
Board of Directors
CEO

Investment Committee

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

Investment Management
Division

ResearchGroup

Investment
Group

Asset
Management
Group

Corporate Plannig /Financial Division

FinancialGroup

Investor
RelationsGroup

Administration Division

FundManagement
Group

Corporate
Planning
Group

Accounting /HumanResourcesGroup

TRIM's Decision-Making Process of Investment Management

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

25

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

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

Kazuo Kitami

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

Director and Chief Investment Officer (CIO)

Seiji Miwa

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

Director and Chief Financial Officer (CFO)

Yasuo Furuya

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

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

26

Overview of Asset Management(1) Operational Performance of JPR

Unit

Operating Revenues
Real estate rental revenues
Gain on sale of real estate

9,088
Million yen

Dividends received

Operating
Performance

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

Operating Expenses

9,056

10,056
9,496

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

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

14th
Fiscal Period((July 1, 2008 Dec. 31, 2008)

10,44910,83011,171

10,415

10,83011,171

530
31

30

34

4,714

4,948

5,443

5,550

5,689

4,816

4,909

5,022

5,482

Million yen

4,151

Operating Profits

Million yen

4,373

5,108

5,006

5,280

Recurring Profits

Million yen

3,643

4,373

4,170

4,452

4,433

Net Income

Million yen

3,642

4,372

4,169

4,451

4,432

Total Assets

Million yen

244,691

271,398

278,842

303,459309,253(% Change)%(+5.7)(+10.9)(+2.7)(+8.8)(+1.9)

Real estate rental expenses

4,315

Loss on sale of real estate

Assets, etc.

Interest-bearing Debt

Million yen

109,466

92,966

99,683

123,475

129,255

Total Unitholders' Equity

Million yen

119,074

161,098

160,895

161,177

161,158(+0.2)(+35.3)(−0.1)(+0.2)(+0.0)(% Change)

Cash
Distribution
per Unit, etc.

4%

Unitholders' CapitalMillion yen

115,431

156,725

156,725

156,725

156,725

Total Cash Distributions

4,432

Million yen

3,642

4,372

4,169

4,451

Dividend payment ratio

%

100.0

99.9

99.9

100.0

99.9

Number of Units Outstanding

Units

530,000

625,000

625,000

625,000

625,000

Total Unitholders' Equity per Unit

Yen

224,668

257,757

257,432

257,883

257,853

6,873

6,996

6,671

7,122

7,092

6,873

6,996

6,671

7,122

7,092

1.5

1.7

1.5

1.5

1.4

3.0

3.4

3.0

3.1

2.9

3.1

3.1

2.6

2.8

2.8

6.1

6.3

5.1

5.5

5.5

118,881

119,074

161,098

160,895

161,177

Cash Distribution per Unit
Distribution amount

Yen

Exceeding profit distribution amount

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

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

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

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

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

DSCR (Note 5)
Net income before interest
and amortization

Million yen

Interest paid (Notes 6)

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

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

Reference
Information

Million yen%
Million yen
%

48.7

59.4

57.7

53.1

52.1

(-2.7)(+10.7)(-1.7)(-4.6)(-1.0)

44.7

34.3

35.7

40.7

41.8

8.8

8.8

8.4

8.0

7.0

5,891

6,230

6,789

7,168

7,285

668

705

809

897

1,048

6,485

6,863

7,407

7,739

7,948

5.8

5.5

5.8

5.6

5.5

6,053

6,476

6,826

6,917

7,346
5.1

5.4

5.2

5.4

5.0

Properties Owned (Note 11)

46

48

49

50

52

Number of Tenants

479

491

517

537

499

Total Leasable Floor Spacem2

337,382.05

361,574.77

373,609.99

383,491.03

383,215.57

Occupancy Rate

%

98.6

99.0

98.4

97.5

96.4

(Note 1) Recurring profit / (total assets at beginning of period + total assets at end of period) / 2(Notes 2-1 and 2-2) Net income / (total unitholders' equity at beginning of period + total unitholders' equity at end of period) / 2(Note 3) Total unitholders' equity at end of period/total assets at end of period x 100(Note 4) Interest-bearing debt / total assets at end of period x 100(Note 5) Net income before interest and amortization (excluding gain or loss on sale of real estate) / interest paid
(Note 6) Interest paid in this table includes interest on corporate bonds(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures(Note 9) Annualized NOI from purchase price of property (10th fiscal period: ￥222.48 billion, 11th fiscal period: ￥250.56 billion, 12th fiscal period: ￥251.90 billion, 13th
fiscal period: ￥275.10 billion and 14th fiscal period: ￥284.31 billion)
Annualized NCF from leasing / purchase price of property(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 10th fiscal period: 184 days, 11th fiscal period: 181 days,
12th fiscal period: 184 days, 13th fiscal period: 182 days and 14th fiscal period: 184 days
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shinjuku Sanchome East Bldg., Tachikawa Business Center Bldg. and JPR
Umeda Loft Bldg. were acquired at multiple times but are calculated as one property.
(Note 12) In the event that the contracted area and the area based on which the rent is calculated differ, the situation was handled by making the latter the leased floor
space through the fiscal period ended December 2006. Since the period ended June 2007, the contracted area has been made the leased area.
(Note 13) Any ratio indicated on financial indices are rounded to the first decimal point (except for the dividend payment ratio, which is rounded off to the first decimal point.)27

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

2) Management Environment
The Office Building Leasing Market
The financial crisis triggered by the subprime issue has spread to the real economy and the global economy
has begun to slow down. Meanwhile, the Japanese economy, which relies heavily on foreign demand, isalso deteriorating rapidly and the effect is beginning to spread far and wide, such as with the decrease of
corporate earnings which led to the worsening of the employment environment. The office market in Tokyoand other major cities have not been able to escape the effects of the slowing demand that has accompanied
the economic slowdown. The vacancy rates of some regional cities increased sharply where there were also
increases in new supplies, etc.

The Retail Property Leasing Market
Personal consumption has further weakened as a result of the economic slowdown and sense of uncertainty
over employment.
Within such an environment, some of the trends in the retail industry include reviewing of nationwide
expansion of stores and holding back on the opening of new stores. Furthermore, the upper rent limits
are declining and the time it takes to obtain new tenants is also getting longer even for of stores in good
locations of major cities.

The For-Sale Real Estate Market
The inflow of capital into the for-sale real estate market is rapidly decreasing. Despite the need to sell realestate, conditions do not match the limited demand. As the trading volume declines rapidly, the indicative
prices of cap rates are rising.

3) Portfolio Management Status
New Property Acquisitions by JPR
JPR has continued to acquire properties based on a rigorous standard for selecting excellent office buildings
and retail properties that can generate stable cash flow and have the potential of future rent increases.
JPR's key strategy in expanding our portfolio has been to stabilize portfolio earnings and balance thediversification of the portfolio both in terms of location and asset class. JPR has been emphasizing theacquisition�of properties and replacement of assets in Tokyo and 5 major cities (Osaka, Nagoya, Fukuoka,
Sendai and Sapporo).
During the 14th fiscal period, we acquired Minami Azabu Building (acquisition price of 3,760 million yen),
Yurakucho Ekimae Building (Yurakucho Itocia) (acquisition price of 3,400 million yen), Shinjuku Square
Tower (additional acquisition of 180 million yen) and Shinagawa Canal Building (acquisition price of 1,870
million yen), and sold NORTH 33 Bldg. (acquisition price of 3,700 million yen). As a result, the balance ofassets under management now totals 52 properties, or 280.61 billion yen on an acquisition price basis as ofthe end of December 2008. The total leasable floor space is now 383,215.57m2 and the number of tenants is
499.

28

Operational Management of Portfolio
Even in the office building leasing market conditions, the financial crisis has spread to the real economy
and demand is starting to slow in tandem with the economic slowdown.
Amidst such conditions, rents of new rental contracts are entering upon a downward trend. Despite suchconditions, however, JPR achieved rent increases upon renewals of rental contracts with existing tenants
for whom rents for continuing rental contracts greatly differed from rents for new rental contracts. Thismeasure was implemented in continuation from the last fiscal period.
Occupancy Rate
JPR improved the levels of the actual properties and services, by reflecting feedback from tenantsatisfaction surveys and other measures based on its brand strategy. At the same time, JPR also took suchmeasures as reviewing rents of new rental contracts when tenants moved in, etc. Despite such measures, JPR
was not able to fill in the empty rooms and the occupancy rate fell 1.1% from the previous fiscal period to96.4%.
Rent Renewals
JPR has continuously sought increased rents upon the renewal of rental contracts mainly in Tokyo CBDsand Greater Tokyo with the objective of narrowing the gap with the rent levels of new rental contracts.
Consequently, JPR successfully achieved rent increases upon renewals of rental contracts in 25 cases at 18of its buildings this fiscal period.
Renovations
As part of its brand strategy that aims to enhance the asset values and improve tenant satisfaction,
JPR completed construction to renew common areas at BYGS Shinjuku Building and renovations of air
conditioning systems at JPR Chiba Building. Furthermore, JPR is conducting renovations of common areas at
JPR Hakata Building and renovations of air conditioning systems at JPR Ichigaya Building and JPR Yokohama
Nihon Odori Building.

Fund Procurement
In the expansion of our portfolio, JPR continued to practice dynamic borrowings accompanying property
acquisitions during this fiscal period. Moreover, JPR has continued to maintain financial stability throughprocurement of long-term fixed rate borrowings, with an eye on avoiding future interest rate hike risks andbeing attentive to spreading out of repayment and redemption maturity dates.
As a result, the balance of total outstanding borrowings as of the end of the fiscal period was 74.755 billion
yen, with unsecured corporate bonds of 54.5 billion yen. With regards to JPR's overall interest-bearing
debt, the average interest rate as of the end of the fiscal period (Note 1) was 1.6%, the interest-bearing debt
ratio (Note 2) was 45.2% and the LTV (interest-bearing debt to total assets ratio) at the end of the period(Note 3) was 41.8%.
Of these, long-term interest-bearing debt with repayment or redemption periods of more than one year thatare hedged against risk of future interest rate hikes now comprises 79.0% of all interest-bearing debt andthe average maturity (Note 4) is 4.1 years. The current portion of long-term interest-bearing debt is 10
billion yen.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
In addition, on January 15, 2009, Moody's Investor Service changed the outlooks for the issuer rating andunsecured long-term debt rating for JPR from stable to negative.

Details of Corporate Credit Ratings as of December 31, 2008
Ratings Agency

Corporate Credit Rating

Rating and Investment Information, Inc.

AA- (Stable)

Moody's Investor Services

A2 (Stable)

Standard & Poor's

Long-term: A (Stable)
Short-term: A-1(Note 1) Average interest is arrived at by calculating a weighted average of interest rates as of the end of the 14th fiscal period based on thebalance of each debt.
(Note 2) Interest-bearing debt ratio (%): interest-bearing debt/(interest-bearing debt + unitholders' capital) x 100 (unitholders' capital:
156.72 billion yen)
(Note 3) Interest-bearing debt to total assets ratio at end of period (%): interest-bearing debt/total assets at end of period x 100 (total assets
at the end of the 14th fiscal period: 309.25 billion yen)
(Note 4) Average maturity of long-term interest-bearing debt is arrived at by calculating a weighted average of maturities from the end of
the 14th fiscal period to the repayment deadlines for long-term interest-bearing debt with repayment periods of more than one
year, based on the balance of each debt.

29

(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. in the 13th fiscal period and prior to the 12th fiscal period.
Date

Number of Units Outstanding Unitholders' Capital (million yen)

Event

Balance

Variation

240

240

120

120

(Note 1)

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 2, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 2, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

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

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)

September 14, 2001 Established by private placement

Balance

Remarks

Variation

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

(4) Cash Distributions
Under the Special Taxation Measures Law of Japan, an investment corporation is allowed to deduct dividends ofprofits paid to investors from its taxable income. In order to have the maximum amount of dividend distribution
deducted, JPR decided to distribute all the retained earnings for the 14th fiscal period except for fractional
portions that make distributions per unit less than 1 yen. As a result, the cash distribution per unit for the 14th
fiscal period was set at 7,092 yen.
(Thousands of yen unless otherwise indicated)

Date
Unappropriated Retained
Earnings at End of Period
Internal Reserves

30

10th
Fiscal Period

11th
Fiscal Period

12th
Fiscal Period

13th
Fiscal Period

14th
Fiscal Period

3,642,765

4,372,752

4,169,727

4,451,575

4,432,832

75

252

352

325

332

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

Total Cash Distributions(cash distribution per unit)

3,642,690

4,372,500

4,169,375

4,451,250

4,432,500(6,873 yen)

(6,996 yen)

(6,671 yen)

(7,122 yen)

(7,092 yen)

Total Cash Distributions from Net Income(cash distribution from net income per unit)

3,642,690

4,372,500

4,169,375

4,451,250

4,432,500(6,873 yen)

(6,996 yen)

(6,671 yen)

(7,122 yen)

(7,092 yen)

Repayment of Paid-in Capital(repayment of paid-in capital per unit)

-

-

-

-

-

(- yen)(- yen)(- yen)(- yen)(- yen)(5) Future Management Policy and Vital Issues
The financial crisis has spread to the real economy and the downturn in the economy has become a reality.
It is difficult to expect an economic recovery to occur in the near term. It seems that JPR is being tested as
to how it can conduct management under this severe management environment.
In regards to the office leasing market, it seems like the negative effects of the economic slowdown on
demand for office space cannot be evaded. As such, JPR finds it necessary to carefully discern the extent
of such effects. We will need to minimize the decrease in earning by making even more careful judgments
on management concerning such factors as the demand trend breakdown by location, property size andspecification, to say nothing of the overall demand trend and the new supply trend breakdown by city or
region.
As for the for-sale real estate market, we must carefully discern how the capital supply to the market
will change in the future. We have entered into a circumstance where our comprehensive management
capabilities are being tested, including investment judgment and fund raising ability, in the downward
phase of the market.
As a result of these conditions, JPR will proceed with management that exercises caution regarding thefollowing matters as we strive to maximize unitholder value while also taking note of economic and interest
rate trends.

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

・JPR will focus its investment on Tokyo and the five other major cities of Osaka, Nagoya,Fukuoka, Sendai and Sapporo and focus on acquiring properties with strong future potential
and competitiveness from a perspective of medium to long-term management. In considering
properties, JPR will strive to acquire properties under appropriate terms by emphasizing thegeographic superiority and future potential of properties while negotiating price based on adetailed market studies and property appraisals.
・As for the information channels for available properties, JPR will strive to acquire blue-chipproperties by endeavoring to expand its unique information channels while also collaborating withsponsor companies of JPR's asset manager, Tokyo Realty Investment Management, Inc. (TRIM),
which are Tokyo Tatemono Co., Ltd., Taisei Co., Ltd. and Meiji Yasuda Life Insurance Company.
JPR will continue to make investment decisions after a proactive collection of information and carefully
researched investment value including determining the future potential by accurately grasping market
trends.

31

2. Management of Portfolio
JPR will work to enhance asset value in property, minimize cancellation risks by tenants and maintainoccupancy rate and NOI through our brand strategy and other measures, including, in an effort tomaintain our competitiveness in the changing market and differentiate ourselves from others.
・Brand strategy
JPR will work to grasp the latest tenant needs by continuously implementing tenant satisfaction
studies and feeding back the results in terms of operations and facilities to tenants, so that we cansecure steady provision of high quality services in both operations and facilities.
・Renovations
JPR will continually strive to grasp changes in social trends as presented in tenant needs and newlybuilt properties. In addition, to minimize the moving out of tenants, we will implement renovationsof common areas and other areas seeking to create highly competitive buildings that can compete
against new properties, and renew air conditioning systems and conduct other construction that help
enhance customer satisfaction.
・Maintaining occupancy rates
With an eye on attracting new tenants, JPR will strive to shorten vacancy time periods by making
flexible responses, while discerning trends in tenant demand. Furthermore, by providing fine-tuned
services and implementing renovations, etc. based on our brand strategy, we aim to increase tenantsatisfaction to prevent tenants from moving out.

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

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

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

32

Overview of the Investment Corporation(1) Unitholders' Capital

10th Fiscal Period
as ofDecember 31, 2006

11th Fiscal Period
as ofJune 30, 2007

12th Fiscal Period
as ofDecember 31, 2007

Total number of authorized units

13th Fiscal Period
as ofJune 30, 2008

14th Fiscal Period
as ofDecember 31, 2008

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Total number of units issued
and outstanding

530,000

625,000

625,000

625,000

625,000

Unitholders' capital (millions of yen)

115,431

156,725

156,725

156,725

156,725

Total number of unitholders

15,60417,002

15,08914,921

14,535(2) Primary Investors

The following table shows the 10 largest investors according to the percentage of their owned investment units to the total
number of units outstanding as of the end of the 14th fiscal period.

Name

Number of
Owned Units

Address

Percentage
of Total Units
Outstanding (%)

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

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

53,40239,26238,48729,300

8.54
6.28
6.15
4.68

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

London, UK(Chuo Ward, Tokyo)

27,246

4.35

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

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

25,0004.00

24,00022,95814,92913,628288,212

3.84
3.67
2.38
2.18
46.11

Total
(Note) Percentage of total units outstanding are rounded to the second decimal point.

(3) Items Related to Directors

A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 14th fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 1)

Name
Hirohito Kaneko

Sosuke Yasuda

Total Directors'
NumberFee duringof Ownedthe 14th Fiscal PeriodUnits(thousands of yen)

Representative Counsel, Hirohito Kaneko Law Office

2,400Group representative partner, Gyosei & Co.
CPA and Director, Gyosei Audit Corporation

Outside Auditor, Mitsui Sumitomo Insurance Company, Limited

Outside Auditor, Nomura Research Institute, Ltd.

4,200

Outside Auditor, Mitsui Sumitomo Insurance Group Holdings

Masato Denawa
Independent
Auditor (Note 2)

Other Current Assignments

Partner Attomey, Spring Partners

Ernst & Young
ShinNihon LLC

15,700(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.

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

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

(4) Asset Manager, Asset Custodian and Administrative Agent

The asset manager, asset custodian and administrative agents of JPR at the end of the 14th fiscal period are as follows.
Outsoursing Category

Name

Asset management company

Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent(administration concerning
corporate bonds)

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

33

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

Real estate in trustArea

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

14th Fiscal Period(as of December 31, 2008)

Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Assets owned
by JPR(thousands of yen)

Percentage of
total assets (%)

Tokyo CBDs

40,036,023

13.2

49,519,733

16.0Greater Tokyo

28,357,015

9.3

28,227,407

9.1

Other Cities

15,722,318

5.2

15,616,652

5.0Tokyo CBDs

76,366,073

25.2

76,057,246

24.6

Greater Tokyo

47,187,751

15.5

46,891,288

15.2

Other Cities

60,837,516

20.0

57,010,884

18.4

344,6510.1

344,651

0.1

11.4

35,585,473

Preferred securities

34,608,624

Deposits and other assets(

Total assets

)

(

)

(

)

11.5
(

)

303,459,974

100.0

309,253,338

100.0(268,506,698)(88.5)(273,323,212)(88.4)(Note 1) Total assets owned are based on the amounts appropriated on the balance sheet as of the settlement date (book values after depreciation for real estate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.
(Note 3) For separation of areas, refer to PP 11(Note 4) Various survey expenses (490,575 thousand yen for the 13th fiscal period and 506,200 thousand yen for the 14th fiscal period) are appropriated in deposits and other assets
as construction in progress in this table.
(Note 5) JPR owns 6,120 units of 132,093 units of preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securities of 4.63%). Furthermore, the value arrived
at by multiplying the amounts of real estate and others on Meieki Nichome Kaihatsu SPC’s balance sheet on 13th fiscal period was 871,540 thousand yen and on 14th fiscal
period was 871,540 thousand yen .

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period)
owned by JPR as of the end of the 14th fiscal period.
Book Value(thousandsof yen)Property Name

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy
Rate (%)

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

Asset Class

Shinjuku Center Bldg.

21,217,816

8,041.63

7,336.50

91.2

4.6

OfficeKawasaki Dice Bldg.

15,277,788

13,089.96

12,981.11

99.2

3.7

RetailKanematsu Bldg.

15,234,925

7,994.02

7,994.02

100.0

4.6

OfficeJPR Umeda Loft Bldg.

12,759,042

18,586.97

18,586.97

100.0

3.9

RetailBYGS Shinjuku Bldg.

12,075,571

11,350.62

10,859.70

95.7

4.4

OfficeJPR Shibuya Tower Records Bldg.

11,744,014

8,076.85

8,076.85

100.0

3.4

RetailMS Shibaura Bldg.

11,138,792

14,429.09

14,429.09

100.0

5.2

OfficeShinjuku Square Tower

9,684,484

11,150.77

10,747.05

96.4

3.2

OfficeTanashi ASTA

8,496,451

31,121.71

31,121.71

100.0

5.8

RetailKawaguchi Center Bldg.

7,604,602

15,461.98

15,091.92

97.6

4.3

Office125,233,490

139,303.60

137,224.92

98.5

43.1

Total

(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents for all properties.
(Note 2)The tenants of Shinjuku Center Bldg. and Kawasaki Dice Bldg. have sublet space to a sub-lessee and a lease agreement has been executed where the rent paid by the tenant fluctuatesin accordance with the lease conditions of the sub-lessee. Therefore, the leasable floor space, leased floor space and occupancy rate entered for this building are the figures concerning
the sub-lessee of the tenant.
(Note 3) Each sectional owner of Shinjuku Square Tower leases its portions to Shinjuku Square Tower Management Co., Ltd. collectively, and the firm subleases them to sub-lessees. The figure
includes portion additionally acquired in 14th fiscal period.
Accordingly, the leasable floor space of the building is calculated by multiplying the total contracted areas of offices, shops and warehouses which the company rents and can subleaseto sub-lessees by 40.31465%, the rent allocation ratio of JPR. The subleased areas used to calculate the occupancy rate are the subleased areas to sub-lessees multiplied by the rent
allocation ratio. Each figure has been rounded to the second decimal point.

34

(3) Acquired Properties
A. Real Estate and Other Acquired Properties

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

Asset

CategoryClass

OfficeTokyo
CBDs

Property Name

OfficeTokyo

RetailBeneficiary Interest

15,234,925

16,300,000

Chuo Ward, Tokyo

Beneficiary Interest

2,560,545

3,150,000

Chuo Ward, Tokyo

Beneficiary Interest

2,700,000(additional acquisition in 2nd fiscal period )(additional acquisition in 6th fiscal period)

Chiyoda Ward, Tokyo

Beneficiary Interest

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

1,970,831
1,646,474
571,963
203,533

Chiyoda Ward, Tokyo

Beneficiary Interest
Beneficiary Interest
Beneficiary Interest
Beneficiary Interest
Real Estate
Beneficiary Interest
Beneficiary Interest
Beneficiary Interest
Real Estate(additional acquisition in 7th fiscal period )Other
CitiesRetailMinato Ward, Tokyo
Shinagawa Ward, Tokyo
Chuo Ward, Tokyo

3,220,000

3,666,437

4,100,000

11,138,792
2,757.986
1,794,230
1,152,502

17,600,000
3,410,000

5,332,312
3,354,602
9,501,567
182,917

5,590,000
4,620,000
13,389,000
12,600,000

3,390,000

JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower

Chiyoda Ward, Tokyo
Shinagawa Ward, TokyoBYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Building
Shinagawa Canal Building

Shinjuku Ward, Tokyo

Real Estate

12,075,571

Chuo Ward, Tokyo

Real Estate

658,171

1,090,000

Shinjuku Ward,Tokyo

Real Estate

21,217,816

18,000,000

Minato Ward, Tokyo

Real Estate

3,891,581

3,400,000

Minato Ward, Tokyo

Real Estate

1,883,242

1,860,000

JPR Shibuya Tower Records Bldg.

Shibuya Ward, Tokyo

Beneficiary Interest

11,744,014

13,800,000

Shinjuku Ward, TokyoJPR Daikanyama

Shibuya Ward, Tokyo

Real Estate

2,222,557

1,580,000

JPR Jingumae 432

Shibuya Ward, Tokyo

Beneficiary Interest

4,579,028

4,500,000

Shinjuku Sanchome East Bldg.

Shinjuku Ward, Tokyo

Real Estate

2,816,666

2,470,000

Yurakucho Ekimae Building (Yurakucho Itocia)

Chiyoda Ward, Tokyo

Real Estate

3,418,705

3,030,000

Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.

Sumida Ward, Tokyo

Beneficiary Interest

5,063,617

7,600,000

Chiba City, Chiba

Beneficiary Interest

2,536,702

1,930,000

Yokohama City, Kanagawa Beneficiary Interest

2,770,000

Yokohama City, Kanagawa Real Estate

2,724,836
882,936

Kawaguchi City, Saitama

Beneficiary Interest

7,604,602

10,500,000

1,360,000

Taito Ward, Tokyo

Real Estate

3,209,523

5,770,000

Tachikawa Business Center Bldg.

Tachikawa City, Tokyo

Beneficiary Interest
Real Estate

827,652
2,272,299

3,760,000

Rise Arena Bldg.

Toshima Ward, Tokyo

Real Estate

5,776,692

6,950,000

Yume-ooka Office Tower

Yokohama City, Kanagawa Real Estate

6,640,625

6,250,000

Tanashi ASTA
Cupo-la Main Bldg.

Nishitokyo City, Tokyo

Beneficiary Interest

8,496,451

13,300,000

Kawaguchi City, Saitama

Real Estate

2,028,946

2,570,000

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square

Kawasaki City, Kanagawa Real Estate

7,416,384

7,000,000

Saitama City, Saitama

Beneficiary Interest

4,359,634

4,340,000

Kawasaki Dice Bldg.

Kawasaki City, Kanagawa Beneficiary Interest

15,277,788

15,184,000

Niigata Ekinan Center Bldg.

Niigata City, Niigata

Beneficiary Interest

1,818,293

2,220,000

Osaka City, Osaka

Beneficiary Interest

7,353,751

11,200,000

Osaka City, Osaka

Beneficiary Interest

4,185,620

4,180,000

Fukuoka City, Fukuoka

Beneficiary Interest

3,332,623

3,200,000

JPR Naha Bldg.

Naha City, Okinawa

Beneficiary Interest

1,443,957

1,700,000

Sompo Japan Sendai Bldg.

Sendai City, Miyagi

Beneficiary Interest

2,633,633

4,050,000

Sompo Japan Wakayama Bldg.

Wakayama City, Wakayama Beneficiary Interest

1,430,747

1,910,000

Tenjin 121 Bldg.

Fukuoka City, Fukuoka

Beneficiary Interest

2,498,258

2,870,000

JPR Nagoya Sakae Bldg.（Note 2）

Nagoya City, Aichi

Real Estate

4,490,622

5,840,000

JPR Dojima Bldg.
JPR Hakata-chuo Bldg.

Osaka City, Osaka

Beneficiary Interest

2,134,583

3,100,000

Fukuoka City, Fukuoka

Beneficiary Interest

1,861,309

2,190,000

Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Nagoya City, Aichi

Real Estate

4,002,605

4,170,000

JPR Umeda Loft Bldg.

Osaka City, Osaka

Beneficiary Interest

12,759,042

15,800,000

Strasse Ichibancho

Sendai City, Miyagi

Beneficiary Interest

3,982,052

2,450,000

Benetton Shinsaibashi Bldg.

Osaka City, Osaka

Beneficiary Interest

5,460,892

5,260,000

Housing Design Center Kobe
JPR Chayamachi Bldg.

Kobe City, Hyogo

Real Estate

7,123,425

7,100,000

Osaka City, Osaka

Beneficiary Interest

6,116,117

5,190,000

Total

273,323,212

311,513,000

Meiji Yasuda Life
Osaka Umeda Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.

OfficeBook Value
Appraisal Value(as of(as of December 31,
December 31,
2008)
2008)
(thousands of yen) (thousands of yen)

Chuo Ward, Tokyo(additional acquisition in 11th fiscal period )Greater

Asset Type

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

(additional acquisition in 14th fiscal period )RetailLocation(Note 1) The calculated values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on " Regulations on calculations ofinvestment corporations."(Note 2) Aside from properties indicated in the table above, JPR owns 6,120 units of 132,093 units of preferred securities issued by Meieki Nichome Kaihatsu SPC (with preferred securitiesof 4.63%). Furthermore, the value arrived at by multiplying the amounts of real estate and others on Meieki Nichome Kaihatsu SPC's balance sheet on it's latest settlement
period was 871,540 thousand yen.

35

History of rental business for each of JPR's real estate and beneficiaryinterest in real estate investments
Location

Asset

CategoryClass

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

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

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

(additional acquisition in 7th fiscal period )JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West

Tokyo
CBDs

Shinjuku Square Tower(additional acquisition in 14th fiscal period )RetailBYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Building
Shinagawa Canal Building
JPR Shibuya Tower Records Bldg.
JPR Daikanyama
JPR Jingumae 432
Shinjuku Sanchome East Bldg.

13th Fiscal Period (from Jan. 1, 2008
to June 30, 2008)
NumberofTenants
8

RentalOccupancy% of Number
RevenuesofofRate (%) (thousands
Total Tenants
yen)
4.3
100.0
465,038
8

OfficeTachikawa Business Center Bldg.

Greater(additional acquisition in 11th fiscal period )Tokyo

RetailRise Arena Bldg.
Yume-ooka Office Tower
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Meiji Yasuda Life
Osaka Umeda Bldg.

OfficeOther
CitiesTokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
NORTH 33 Bldg.（Note 2）
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Nagoya Sakae Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg.
Mistubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

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

100.0

487,544

4.4

100.0

109,601

1.0

1

100.0

110,927

1.0

4

100.0

107,555

1.0

4

100.0

111,876

1.0

11

100.0

75,051
32,087
12,198

0.7
0.3
0.1

11

100.0

76,83532,124
12,288

0.7
0.3
0.1

9

100.0

143,301

1.3

9

100.0

146,076

1.3

8

100.0

582,419

5.4

8

100.0

597,666

5.3

2

100.0

139,327

1.3

2

100.0

141,791

1.3

1

100.0

64,667
41,468

0.6
0.4

1

100.0

87,356
41,673

0.8
0.4

9

100.0

191,514

1.8

7

76.3

187,449

1.7

4

100.0

195,762

1.8

4

100.0

200,060

1.8

96.4

320,728
2,587

2.9
0.0

96.5

319,454

2.9

21

24

97.1

491,804

4.5

23

95.7

495,011

4.4

4

100.0

51,135

0.5

4

100.0

52,456

0.5

24

97.4

263,846

2.4

21

91.2

542,854

4.9

1

100.0

（Note 3）（Note 3）

22

1

14.8

147

0.0

1

100.0

345,576

3.2

1

100.0

345,576

3.1

3

72.1

58,968

0.5

4

100.0

39,881

0.4

5

100.0

97,091

0.9

5

100.0

97,930

0.9

1

100.0

39,166

0.4

1

100.0

78,306

0.7

1

100.0

（Note 3）（Note 3）

6

100.0

296,516

2.7

6

100.0

295,632

2.6

29

89.1

137,059

1.3

28

86.1

133,987

1.2

12

100.0

143,648

1.3

12

100.0

147,056

1.3

13

100.0

75,586

0.7

12

93.8

74,208

0.7

39

98.5

486,508

4.5

38

97.6

490,223

4.4

8

90.9

191,255

1.8

8

91.6

197,416

1.8

19

100.0
89.9

58,925102,527

0.5
0.9

19

100.0
74.9

60,658102,246

0.5
0.9

1

100.0

238,836

2.2

1

100.0

242,423

2.2

35

94.5

324,244

3.0

34

92.4

342,855

3.1

1

100.0

596,400

5.5

1

100.0

596,400

5.3

1

100.0

（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）3100.0

129,061

1.2

3

100.0

129,061

1.2

20

99.2

484,488

4.5

20

99.2

484,614

4.3

10

98.2

132,717

1.2

10

97.1

129,610

1.2

27

98.4

378,506

3.5

26

99.4

393,998

3.5

9

98.7

244,289

2.3

9

98.7

248,481

2.2

27

97.7

162,084

1.5

27

97.7

164,107

1.5

18

97.6

111,018

1.0

18

97.9

115,949

1.0

26

98.9

168,444

1.6

111,937

1.0

16

100.0

206,879

1.9

15

96.9

207,547

1.9

16

91.6

117,987

1.1

15

91.7

116,943

1.0

13

100.0

119,990

1.1

12

98.3

119,355

1.1

21

100.0

225,190

2.1

20

95.3

231,368

2.1

8

83.4

115,999

1.1

8

83.4

121,976

1.1

5

92.5

85,291

0.8

6

100.0

90,357

0.8

1

100.0

190,863

1.8

1

100.0

193,608

1.7

1

100.0

402,411

3.7

1

100.0

402,411

3.6

0

0.0

221,089

2.0

0

0.0

1

100.0

（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）1100.0（Note 3）（Note 3）8

100.0

138,213

1.3

7

100.0

142,17197.5 10,830,941 100.0

499

537

36

Rental% of
Revenues
Occupancy(thousands of
Total
Rate (%)
yen)

1

Yurakucho Ekimae Building (Yurakucho Itocia)

Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.

14th Fiscal Period (from July 1, 2008
to Dec. 31, 2008)

1.3

96.4 11,171,677 100.0(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. , Kawasaki Dice Bldg. and Strasse
Ichibancho: 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. The tenants of Shinjuku Square Tower, Shinjuku Center Building, Rise Arena Bldg. , Kawasaki Dice Bldg. and Strasse Ichibancho have sublet space to sublessees and leaseagreements 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 beenentered as the numbers of tenants.
(Note 2) NORTH 33 Bldg. was sold on October 30, 2008.
(Note 3) The tenant to whom the entire portion owned by JPR is leased has not agreed to our disclosing rents and other information. Therefore, JPR does not disclose them as it falls undercases in which disclosure is impossible due to inevitable reasons.

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

Meieki Nichome
Kaihatsu SPC

Asset Type

Preferred securities

Appraisal Value

Units

6,120 units

Unit Price
(yen)

Value

(thousands of yen)

Unit Price(yen)(thousands of yen)

56,315

344,651

56,315

344,651

Value

Gains or
Lossesfrom
Valuation

Remarks(Note 1)
(Note 2)

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

(4) Status of Other Properties
Beneficiary interests with real estate as major entrusted properties have been entered under Real Estate andother Aquired Properties on P35.
There is no incorporation of main specific assets which are main investment targets of JPR other than listed on
P35 as of the end of 14th period.

37

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

Location

PurposeSchedule

Nagoya�City,
Aichi

Replacement of 1st – 9th floor
air conditioning units andrenewal of 6th – 9th floor
common areas

Jan. 2009~
Jun. 2009292

JPR Naha Bldg.

Naha City,
Okinawa

Replacement of 1st – 12th
floor air conditioning units

Jan. 2009~
Jun. 2009100

JPR Hakata Bldg.

Fukuoka City,
Fukuoka

Renewal of 1st – 5th floor
common areas

Jan. 2009~
Jun. 200986

Yokohama Nihon Odori Bldg.

Yokohama City,
Kanagawa

Replacement of 3rd – 6th floor
air conditioning units

Jan. 2009~
Jun. 200981

JPR Ueno East Bldg.

Taito Ward,Tokyo

Renewal of exterior repair seals

Apr. 2009~
May 2009

48

Housing Design Center Kobe

Kobe City,
Hyogo

Renewal of 10th floor

Oct. 2008~
Feb. 200943

JPR Ichigaya Bldg.

Chiyoda Ward,Tokyo

Replacement of 1st – 2nd floor
air conditioning units

Jan. 2009~
Jun. 200937

Mitsubishi UFJ Lease & Finance
Nagoya Head Office Bldg.

Total Value

Payment
duringthe 14th
Fiscal Period

AmountAlreadyPaid(2) Capital Expenditures during the 14th Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate
during the 14th period. Among major capital expenditures, renewal of exterior repair seals for maintenanceand replacement work to enhance tenant satisfaction as well as improvements to common-use areas and theinstallation of office automation floors for leased offices with the aim of attracting new tenants. In addition,
JPR conducted construction of 246 million yen (Note), which was appropriated as expenditures for repair andmaintenance, aside from these constructions.
Construction Expenses(millions of yen)

Location

PurposeJPR Ichigaya Bldg.

Chiyoda Ward,Tokyo

Replacement of 3rd – 6thfloor air conditioning
units

Jul. 2008~
Dec. 2008

72

JPR Chiba Bldg.

Chiba City,
Chiba

Replacement of 2nd –5th floor air conditioning
units

Jul. 2008~
Dec. 2008

71

JPR Hakata Bldg.

Fukuoka City,
Fukuoka

Renewal of 6th – 10th
floor common areas

Jul. 2008~
Dec. 2008

71

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Replacement of interiorof 2nd basement – 1stfloor common areas

Apr. 2008~
Sep. 2008

68

JPR Yokohama Nihon
Odori Bldg.

Yokohama City,
Kanagawa

Replacement of 7th – 10th
floor air conditioning units

Jul. 2008~
Dec. 2008

65

JPR Ueno East Bldg.

Taito Ward,Tokyo

Renewal of 1st basement
exclusive area into officespecification

Sep. 2008~
Nov. 2008

54

BYGS Shinjuku Bldg.

Shinjuku Ward,Tokyo

Replacement of interiorof 2nd – 5th floor
common areas

Jul. 2008~
Sep. 2008

35

Property Name

Other Properties

PeriodRepairs of common area, installation of officeautomation floors, preparation of parking
lots, air conditioners and disaster prevention
facilities

163

Total

602

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

38

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

(Millions of yen)

Operation Period

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

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

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

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

14th Fiscal Period(July 1, 2008 ~Dec. 31, 2008)

Balance of deposits at
end of previous period

678

698

681

737

796

Deposits during the period

297

488

803

604

697

Amounts used from
deposits during the period

277

505

747

545

725

Deposits carried forward
to the next period

698

681

737

796

768

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

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

14th Fiscal Period (July 1, 2008 - Dec. 31, 2008)(a) Asset Management Fees (Note)

416,576

416,750

Fixed compensation

75,00075,000

Incentive-based compensation 1

203,893

204,612

Incentive-based compensation 2

137,682

137,138(b) Administrative Service and Custodian Fees

66,21865,834(c) Directors' Fee

6,600

6,600

(d) Trust Fees

55,75856,937(e) Other Expenses

95,297

116,584

640,451

662,707

Total(Note) Aside from the amounts of the asset management fees entered above, a total 58,000 thousand yen for 13th fiscal period and 23,025 thousand yen for
the 14th fiscal period have been paid for asset management of the acquired properties.

39

(2) Status of Borrowings

As of December 31, 2008 JPR has the following borrowings.
Category

Drawdown
Date

LenderBank ofTokyo-Mitsubishi
UFJ, Ltd.

Resona Bank,
LimitedBalance as of Balance as ofJune 30,
December 31,
2008
2008
(millions of yen)

1,800

0.961

Jul. 5, 2008

Apr. 23, 2008

1,200

0.961

Jul. 5, 2008

Jul. 4, 2008

3,000

1.138

Mar.31, 2009

Jul. 14, 2008

1,000

1.246

Jul. 3, 2009
Jul. 5, 2008

Feb. 5, 2008

2,000

0.961

Mar. 26, 2008

2,000

1.011

Jul. 5, 2008

1.138

Jul. 3, 2009

4,000

Mar. 26, 2008

1,872

1.011

Jul. 5, 2008

Mizuho Corporate Apr. 23, 2008
Bank, Ltd.
Jul. 4, 2008

1,100

0.961

Jul. 5, 2008

2,972

1.138

Jul. 3, 2009

1,000

1.246

Jul. 3, 2009

1.011

Jul. 5, 2008

1.143

Mar.31, 2009

Jul. 14, 2008
Mitsubishi UFJ
Mar. 26, 2008
Trust and Banking
Corporation (Note 4) Jul. 4, 2008

3,800

Mar. 26, 2008

10,20

1.011

Jul. 5, 2008

Jul. 4, 2008

1.138

Mar.31, 2009

Sumitomo Mitsui
BankingCorporation Jul. 14, 2008

1,000

1.246

Jul. 3, 2009

900

1.246

Jul. 3, 2009

Aozora Bank, Ltd.

Jul. 14, 2008
14,792

17,172

Nov. 24, 2005

5,000

5,000

1.453

Nov. 27, 2012

Mar. 26, 2008

2,000

2,000

1.725

Mar. 26, 2015

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

6,000

6,000

1.734

Aug. 29, 2011

Sep. 26, 2006

3,000

3,000

1.356

Sep. 24, 2010

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

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

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

1.356
1.676
1.356
1.676
1.356
1.642
1.858
1.666
1.858
2.035
1.858
2.257

Sep. 24, 2010
Apr. 11, 2012
Sep. 24, 2010
Apr. 11, 2012
Sep. 24, 2010
Apr. 11, 2012
Dec. 27, 2013
Feb. 5, 2015
Dec. 27, 2013
Jun. 4, 2013
Dec. 27, 2013
Jun. 4, 2015

2,000

2,000

1.676

Apr. 11, 2012

The Iyo Bank, Ltd.

1,000

1,000

1.676

Apr. 11, 2012

5,000

5,000

1.181

Feb. 4, 2011

5,000

5,000

1.380

Mar. 26, 2011
Aug. 26, 2011

Total
Zenkyoren(The National
Mutual Insurance
Federation ofAgricultural
Cooperatives)

Shinsei Bank, Ltd.
The Bank ofFukuoka, Ltd.

Borrowings

2,280
1,020

Shinsei Bank,
LimitedLong-Term

Repayment
Date

Feb. 5, 2008

Jul. 4, 2008

Short-Term
Borrowings(millions of yen)

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

Apr. 11, 2007

Mizuho Corporate
Feb. 5, 2008
Bank, Ltd.
Bank of TokyoMitsubishi UFJ, Ltd. Mar. 26, 2008
Aozora Bank, Ltd. Aug. 21, 2008
Meiji Yasuda Life
Insurance
Company
Total

3,400

1.593

Jun. 21, 2002

4,783

4,783

2.050

Jun. 21, 2011

Mar. 28, 2003

4,400

4,400

1.750

Mar. 28, 2015

54,18357,583

Repayment
MethodUse

Principal

Unsecured/

lump
sum
repayment
on maturity

Principal
lumpsum
repayment

Remarks(Note 3)

Unguaranteed/
NonsubordinatedUnsecured/
Unguaranteed/
Non-(Note 3) subordinatedon maturity

Secured/
Unguaranteed/
Nonsubordinated(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal point. Furthermore, fees related to loan arrangement paid
to the above lenders are not included.
(Note 2) Short-term borrowings are floating-rate borrowings. Long-term borrowings are fixed-rate borrowings.
(Note 3) Funds are mainly used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses) and repaying borrowings.
(Note 4) JPR repaid the following short-term borrowing on November 28, 2008 ahead of the maturity date: 1.52 billion yen out of 3.8 billion yen from Mitsubishi UFJ Trust and Banking
Corporation undertaken on July 4, 2008.

40

(3) Corporate Bonds

Details of corporate bonds outstanding as of December 31, 2008 are as follows.
Balance as ofJune 30, 2008
(millions of yen)

Issue Date

Name

Second Series ofCorporate
Bonds
Third Series ofCorporate
Bonds
Fourth Series ofCorporate
Bonds
Fifth Series ofCorporate
Bonds
Sixth Series ofCorporate
Bonds
Seventh Series ofCorporate
Bonds
Eighth Series ofCorporate
Bonds
Ninth Series ofCorporate
Bonds
Tenth Series ofCorporate
Bonds

Balance as ofDecember 31, 2008
(millions of yen)

Coupon Rate(per annum)

Maturity
Date

Redemption

Use

Feb. 12, 2004

7,000

7,000

1.38

Feb. 12,2010

Feb. 12, 2004

5,000

5,000

2.32

Feb. 12,2014

Purchase ofandNov. 4, 2004

10,00010,0000.92

Nov. 4,2009

Nov. 4, 2004

5,000

5,000

1.44

Nov. 4,2011

Nov. 4, 2004

5,000

5,000

2.00

Nov. 4,2014

Dec. 14, 2006

4,500

4,500

2.90

Dec. 14,2026

July 23, 2007

9,000

9,000

1.85

July 23,
2012

July 23, 2007

6,000

6,000

2.10

July 23,2014

May 30, 2008

3,000

3,000

1.71

May 30,2011

54,50054,500Total

Remarks(Note 1)properties
repayment ofborrowings(Note 2)

Bulletpayment

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

Acquisition and Sale during the 14th Fiscal Period(1) Aqcuisition and Sale of Real Estate and Asset-Backed Securities
Acquisition

Acquired
Date

AcquisitionPrice(thousandsof yen)(Note)

Minami Azabu
Bldg.

Jul. 14,2008

3,760,000

Yurakucho
Ekimae Building

Aug. 27,2008

3,400,000

Sep. 26,2008

180,000

Type of Asset

Real Estate
Name

Real Estate
Real Estate

Real Estate(Yurakucho Itocia)

Shinjuku Square
Tower (additional
acquisition in 14th
fiscal period)

BeneficiaryInterest in
Real Estate

NORTH 33 Bldg.

Real Estate

Shinagawa Canal
Bldg.

Total

Dec. 19,
2008

Sale

Sale
Date

Sale
Sale Profit
Book
Difference (C)SalePrice (A)and Loss
Value (B)(A) - (B)Expenses (D)(thousands (thousands (thousands of (thousands(C) - (D)of yen)(thousandsof yen)yen)of yen)(Note)
of yen)

Oct.
30,
2008

3,520,000 3,489,138

30,86135,300(4,438)3,520,000 3,489,138

30,86135,300(4,438)1,870,000
9,210,000(Note) Values of "acquisition price" or "sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.

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

41

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

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

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

Acquisition or Sale

Real Estate NameTransaction
Date

Acquisition

Minami Azabu Bldg.

Jul. 14, 2008

3,760,000

3,760,000

Acquisition

Yurakucho
Ekimae Building

Aug. 27, 2008

3,400,000

3,400,000

Acquisition

Shinjuku Square
Tower (additional

Sep. 26, 2008

180,000

180,000Sale

NORTH 33 Bldg.

Oct. 30, 2008

3,520,000

2,960,000

Shinagawa Canal Bldg.

Dec. 19, 2008

1,870,000

1,880,000

Acquisition(Yurakucho Itocia)

acquisition in 14th fiscal
period)(Note 1) Values of "acquisition price or sale price" are amounts (transaction price indicated in the transaction contract) excluding expenses (such as real estate transaction brokeragefees) required for acquisition or sale of the relevant real estate.
(Note 2) Surveys on the values of specified assets, etc. indicated above were conducted by Ernst & Young ShinNihon LLC at times of acquisition or sale of properties based on
the Report No. 23, "surveys on values of specified assets, etc. of investment trusts and investment corporations," issued by the Industry Audit Committee of the JapaneseInstitute of Certified Public Accountants. Furthermore, aside from the value surveys shown above, JPR has received survey reports on locations, addresses and other items
needed for identifying relevant real estate, etc.

(4) Transactions with Interested Parties and Major Shareholders
A.Transaction Status
Category(Thousands of yen)Transaction Price, etc.
Acquisition Price, etc.

Sale Price, etc.

￥9,210,000￥3,520,000

Of which, acquisition pricefrom interested parties, etc.

Of which, sale priceto interested parties, etc.

￥9,030,000 (98.0%)(- %)East 3 TMK

3,760,000 (41.6%)(-%)

Taisei Corporation

3,400,000 (37.7%)(-%)

Tokyo Tatemono Co., Ltd.

1,870,000 (20.7%)

(-%)

Total

9,030,000 (100.0%)(-%)

Total Amount

Breakdown of Transactions with Interested Parties, etc.

42

B.Value of Fee Expenses
Category(Thousands of yen)

Paid Amount(B)

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

Tokyo Tatemono Co., Ltd.

148,000

100.0

Tokyo Tatemono Co., Ltd.

175,695

72.8

Yasuda Real Estate Co., Ltd.

11,272

4.7

Meiji Yasuda Building Management, Co., Ltd.

22,838

9.5

Yuraku Real Estate Co., Ltd.

3,361

1.4

Tokyo Tatemono Co., Ltd.

357,737

67.0

Yasuda Real Estate Co., Ltd.

23,4894.4

Meiji Yasuda Building Management, Co., Ltd.

47,786

9.0

Yuraku Real Estate Co., Ltd.

15,050

2.8

Tokyo Tatemono Co., Ltd.

1,731

100.0

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

Brokerage FeesManagement Fees
(Note 2)

Outsourcing Fees

Tenant Brokerage Fees,
etc.

148,000

241,397

Paid Party

533,699

1,731(Note 1) Interested parties and major shareholders refers to the interested parties of the asset management company who has concluded an asset management agreementwith JPR and is regulated as designated in Article 123 of the Enforcement Order of as the Investment Trusts and Investment Corporations Law and the major
shareholders of the asset management company regulated defined in Article 29-4-2 of the Financial Instruments and Exchange Law.
(Note 2) The management fees indicated in the above table include construction management fees (total of 14,938 thousand yen for JPR) appropriated as assets and nothandled as expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties during the 14th fiscal period.
Tokyo Tatemono Co., Ltd.

266,201 thousand yen

Tokyo Tatemono Techno-build Co., Ltd.

164,040 thousand yen

Yasuda Real Estate Co., Ltd.

4,022 thousand yen

Meiji Yasuda Building Management Co., Ltd.

13,453 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct
the class 1 financial instruments transaction business, class 2 financial instruments transaction business, land andbuilding transaction business, or real estate syndication business, and has no such transactions with JPR.

43

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

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

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

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

44

Overview of Investment Trust Beneficiary Certificates of JPR(1) Acquisition

Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired 40 units of JPR
on September 14, 2001, and an additional 60 units on January 22, 2002 as a result of an investment unit split(2.5 units for one existing unit).

(2) Units HeldThe number of investment units held by Tokyo Realty Investment Management, Inc. has remained at 100
units through December 31, 2008 with the total investment unchanged at 20 million yen. The amount of units
held is immaterial versus the total units outstanding of JPR.

Other
(1) Notice

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

Approved Issues

Outline
In line with the dematerialization of
investment securities enforced on January
5, 2009, relevant parts of the Trustee/Asset

December 24, 2008

Conclusion of agreements, etc. for revising
the Trustee/Asset Custodian Agreement
in line with the dematerialization of
investment securities

Custodian Agreement were revised and amemorandum was concluded regarding
how to handle personal information
concerning unitholders, etc. that wereacquired based on the agreement
regarding special account management andthe concerned agreements.

(2) Other

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

45

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

End of 14h Fiscal Period(as of December 31, 2008)

End of 13th Fiscal Period(information only)(as of June 30, 2008)% Change

ASSETS
CURRENT ASSETS :￥ 19,706,912
14,860,678
172,743
164,48474
10,05034,914,943￥ 18,461,764

33,958,148

2.8%

Buildings
Accumulated depreciation
Buildings, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
LandLand in trust
Construction in progress

30,497,213(2,835,784)
27,661,429
77,986,384(14,222,590)
63,763,794
21,379(2,468)18,91087,888(22,094)
65,794
366,611(124,786)
241,824
1,398,104(699,272)
698,831
18,492(7,689)10,80386,167(33,331)52,83563,879,374
115,375,371
514,234

Total property, plant and equipment

272,283,204

28,136,636(2,364,373)
25,772,263
79,874,090(13,494,427)
66,379,662
17,558(1,834)
15,72388,279(19,258)
69,021
335,716(106,273)
229,442
1,435,934(681,934)
753,999
18,077(6,190)11,88786,310(28,677)
57,63356,542,608
117,128,148
490,575
267,450,965

1.8%

1,542,818
8,434
1,551,252

1,542,818
9,604
1,552,423(0.1%)

344,651
17,00018,249344,651
17,000900
380,801
274,215,258

900
362,551
269,365,940

5.0%
1.8%

123,137
123,137

135,885
135,885(9.4%)￥309,253,338￥303,459,974

1.9%Cash and deposits
Cash and deposits in trust
Accounts receivable-trade
Prepaid expenses
Deferred tax assets
Other
Total current assets

NONCURRENT ASSETSPROPERTY, PLANT AND EQUIPMENT :INTANGIBLE ASSETS :Leasehold right
Other
Total intangible assets

INVESTMENTS AND OTHER ASSETS :Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets

DEFERRED ASSETS :Investment corporation bond issuance costs
Total deferred assets

TOTAL ASSETS(Note) See accompanying Notes to Financial Statements

46

15,126,982
222,607
118,836
32
27,925(Thousands of yen)

End of 14th
Fiscal Period(as of December 31, 2008)

End of 13th
Fiscal Period(information only)(as of June 30, 2008)% Change

LIABILITIESCURRENT LIABILITIES :Accounts payable￥ 1,317,067￥ 1,386,300

Short-term loans payable

17,172,000

14,792,000

Current portion of investment
corporation bond

10,000,000

Accounts payable-other520,838

572,798

Accrued expenses

276,912279,203

Income taxes payable
Accrued consumption taxes

660

648

164,797

Advances received

1,160,320

166,601
1,168,758

Total current liabilities

30,612,596

18,366,311

Investment corporation bond

44,500,000

54,500,000

Long-term loans payable

57,583,000

54,183,000

Tenant leasehold and security
deposits

4,463,054

4,164,487

Tenant leasehold and security
deposits in trust

10,936,415

11,069,161

Total noncurrent liabilities

117,482,470

Total liabilities

148,095,067

123,916,649
142,282,960

Unitholders' capital

156,725,438

156,725,438

Unappropriated retained earnings(undisposed loss)

4,432,832

4,451,575

Total surplus

4,432,832

4,451,575(0.4%)

Total unitholders' equity

161,158,271

161,177,014(0.0%)

Total net assets

161,158,271

161,177,014￥ 309,253,338￥ 303,459,974

NONCURRENT LIABILITIES :NET ASSETSUNITHOLDERS' EQUITY :66.7%(5.2%)
4.1%

SurplusTOTAL LIABILITIES AND NET ASSETS

1.9%(Note) See accompanying Notes to Financial Statements

47

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

14th Fiscal Period(July 1, 2008 December 31, 2008)

13th Fiscal Period(information only)(January 1, 2008 June 30, 2008)

OPERATING REVENUE :3.1%

Rent revenue-real estate￥11,171,677￥10,830,941

Total operating revenue

11,171,677

10,830,941

OPERATING EXPENSES :Expenses related to rent business
Loss on sales of real estate properties

2.5%
5,022,008

4,909,878

4,438

Asset management fee

416,750

416,576

Administrative service and asset custody fees

65,834

66,218

Directors' compensations

6,600

6,600

Trust fees

56,93755,758Other operating expenses

116,584

95,297

Total operating expenses

5,689,154

5,550,329

5,482,523

5,280,611

OPERATING INCOME
NON-OPERATING INCOME :Interest income

3.8%(64.3%)

32,594

Income on settlement of management
association accounts

14,86979,595

Other

3,049

5,323

Total non-operating income

35,64399,789Interest expenses

571,148434,963

Borrowing expenses

19,481

16,243

Interest expenses on investment
corporation bonds

477,065

462,796

Amortization of investment corporationbond issuance costs

12,748

9,512

Other

4,213

4,682

NON-OPERATING EXPENSES :16.9%

1,084,657

928,197

ORDINARY INCOME

4,433,509

4,452,203(0.4%)

INCOME BEFORE INCOME TAXES

4,433,509

4,452,203(0.4%)

Income taxes-current

1,044

945

Income taxes-deferred

(41)

34

1,002

980

Total non-operating expenses

Total income taxes

NET INCOME

4,432,507

4,451,222(0.4%)RETAINED EARNINGS BROUGHT FORWARD

325

352

(7.7%)

UNAPPROPRIATED RETAINED EARNING(UNDISPOSED LOSS)￥ 4,432,832￥ 4,451,575(0.4%)(Note) See accompanying Notes to Financial Statements

48% ChangeStatements of Changes in Net Assets(For the six-month periods ended December 31, 2008 and June 30, 2008)(Thousands of yen)

Unitholders' capital
BALANCE AS OF DECEMBER 31, 2007

￥156,725,438

Changes of items during the period
Distributions from surplus
Net income

BALANCE AS OF JUNE 30, 2008

￥156,725,438

Changes of items during the period
Distributions from surplus
Net income

BALANCE AS OF DECEMBER 31, 2008

￥156,725,438

Surplus

Total net assets￥4,169,727￥160,895,166

281,847

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

4,451,222

4,451,222

4,451,575

161,177,014(18,742)(18,742)(4,451,250)(4,451,250)

4,432,507

4,432,507￥4,432,832￥161,158,271(Note) See accompanying Notes to Financial Statements

49

Notes to Financial Statements
Basis of Presenting Financial Statements
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its
financial statements in accordance with accounting principles generally accepted in Japan (JapaneseGAAP), including provisions set forth in the Investment Trust Law, the Company Law and the related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of JPR,
which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial
statements, certain reclassifications have been made to the financial statements issued domestically inorder to present them in a format which is more familiar to readers outside Japan. In addition, the notes
to financial statements include information which might not be required under Japanese GAAP but ispresented herein as additional information.
JPR's accounting period ends at the end of June and December. JPR's 14th accounting period began on
July 1, 2008 and ended on December 31, 2008.

Significant Accounting Policies
1. Assets Valuation Standards and Methods

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

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

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

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

3. Accounting for Deferred Assets

Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are depreciated utilizing the straight-line method over theredemption periods.

50

4. Standards for Recording Revenues and Expenses
Accounting treatment of Taxes on Properties and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR adopt the methodof charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental
expenses. Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers
during the first fiscal period as an acquisition cost, not as expenses, in connection with the acquisition ofreal estate or entrusted beneficiary interest with real estate as entrusted property. During the 14th fiscal
period, the amount equivalent to the property taxes included as an acquisition cost of real estate totaled
11,292 thousand yen .

5. Other Significant Items Fundamental to Preparing the Financial Statements(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 arerecorded in relevant accounts on the balance sheets and statements of income.
Fur ther more, the following mater ial accounts are separately stated in the balance sheet for
properties in trust recorded in relevant accounts.
a. Cash and deposits in trust.
b. 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 trust.
c. Tenant leasehold and security deposits in trust.
(2) Accounting for Consumption Taxes
National and local consumption taxes are accounted with the consumption taxes excluded.

Change in Accounting Policies
Application of Accounting Standard for Lease Transactions
The Accounting Standard for Lease Transactions (Accounting Standards Board of Japan [ASBJ] Statement
No. 13, released on March 30, 2007) and the Guidance on Accounting Standard for Lease Transactions(ASBJ Guidance No. 16, released on March 30, 2007) have been applied from the 14th Fiscal Period.
Regarding this application, there was no impact on earning.

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

End of 14th Fiscal Period
Assets pledged as collateral are as follows
Cash and deposits in trust
Buildings (net)
Buildings in trust (net)
Structures in trust (net)
Machinery and equipment (net)
Machinery and equipment in trust (net)
Tools, furniture and fixtures in trust (net)LandLand in trust
Total

Secured liabilities are as follows
Long - term loans payable
Tenant leasehold and security deposits
Total

End of 13th Fiscal Period(as of December 31, 2008)(information only)(as of June 30, 2008)￥ 2,164,766
139,457
7,091,290
3,966
5,136
13,6392,147
399,183
8,536,013￥18,355,601￥ 2,260,913
140,352
7,172,123
4,192
5,307
15,143
2,374
398,201
8,536,013￥18,534,622

End of 14th Fiscal Period

End of 13th Fiscal Period(as of December 31, 2008)(information only)(as of June 30, 2008)￥ 9,183,000
15,536￥ 9,198,536￥ 9,183,000
15,536￥ 9,198,536

51

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

End of 14th Fiscal Period

Contract execution date
Credit limit
Outstanding debt at end of period
Unused commitment line at end of period

End of 13th Fiscal Period(as of December 31, 2008)(information only)(as of June 30, 2008)

December 1, 2008
￥16,000,000

December 1, 2006
￥20,000,000￥16,000,000￥20,000,000

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

End of 14th Fiscal Period

End of 13th Fiscal Period(as of December 31, 2008)(information only)(as of June 30, 2008)￥50,000￥50,000

Notes to Statements of Income and Retained Earnings
1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)

14th Fiscal Period

13th Fiscal Period(July 1, 2008 December 31, 2008)(information only)(January 1, 2008 June 30, 2008)￥8,462,475
1,635,289
219,033
16,796
10,974
21,36910,365,939￥8,127,839
1,609,384
215,881
16,818
10,78821,31010,002,022

Incidental income
714,088
Time-based parking revenues
8,505
Cancellation charges
18,310
Income equivalent to expenses for restoration to as is condition
22,953
Other miscellaneous income
41,879Sub total
805,738￥11,171,677
Total rent revenue-real estate594,1217,466
191,835
10,70024,794
828,918￥10,830,941

A. Rent Revenue-Real Estate
Rent revenue
Rents
Common charges
Parking revenues
Advertising expenses
Antenna use fees
Other
Sub total
Other rental revenues

B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
Depreciation
Other
Total expenses related to rent business
C. Profits (A-B)

52￥

533,699
802,804
849,826
33,244240,405
226,458
455,689
1,799,159
80,720￥5,022,008￥￥6,149,669￥5,921,062

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

2. Breakdown of Loss on Sales of Real Estate Properties(Thousands of yen)

14th Fiscal Period(July 1, 2008 December 31, 2008)

13th Fiscal Period(information only)(January 1, 2008 June 30, 2008)

Loss on sales of real estate properties
Proceeds from sales of real estate properties￥ 3,520,000

Costs of sales of real estate properties

3,489,138

Other related sales expense

35,300Total loss on sales of real estate properties￥(4,438)Notes to Statements of Changes in Unitholders' Equity
14th Fiscal Period

The number of units outstanding

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

625,000 units

625,000 units

14th Fiscal Period

13th Fiscal Period

Tax Effect Accounting(Thousands of yen)

1. Breakdown of Main Causes for Deferred Tax Assets
and Deferred Tax Liabilities(Deferred tax assets)(July 1, 2008 December 31, 2008)

Enterprise tax not deductible for income tax purposes
Lump-sum depriciated assets not deductible for tax purposes
Total deferred tax assets
Net deferred tax assets(information only)(January 1, 2008 June 30, 2008)

￥ 21

￥ 16

52
74
￥74

15
32
￥32

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

14th Fiscal Period

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

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

39.39%

39.39%(39.38%)
0.01%
0.02%

(39.38%)
0.01%
0.02%

3. Amendment of Amount of Deferred Tax Assets and Deferred Tax Liabilities with the Change of Tax Rate for Income
Taxes, etc.
With the promulgation of the Act on Temporary Measures concerning Special Local Corporation
Tax (Law No. 25 of 2008) on April 30, 2008, the effective statutory tax rate for deferred tax assets
and deferred tax liabilities has been changed from 39.39% to 39.33%.
The effect from this change of tax rate is minimal.

Property and Equipment Leased to JPR
14th Fiscal Period(July 1, 2008 - December 31, 2008)

13th Fiscal Period (information only)(January 1, 2008 - June 30, 2008)

No property and equipment leased to JPR

No property and equipment leased to JPR

53

Transactions with Interested Parties
14th Fiscal Period(July 1, 2008 - December 31, 2008)

13th Fiscal Period (information only)(January 1, 2008 - June 30, 2008)

No transactions with interested parties

No transactions with interested parties

Per Unit Information(Yen)

14th Fiscal Period

Total net assets per unit
Net income per unit

13th Fiscal Period(July 1, 2008 December 31, 2008)(information only)(January 1, 2008 June 30, 2008)￥257,853￥7,092￥257,883￥7,121

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

14th Fiscal Period

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

54

13th Fiscal Period(July 1, 2008 December 31, 2008)(information only)(January 1, 2008 June 30, 2008)￥4,432,507￥4,451,222￥4,432,507￥4,451,222

625,000 units

625,000 units

Distribution Information(Yen)

14th Fiscal Period

1. Unappropriated retained earnings
2. Distributions(Distribution per unit)
3. Retained earnings brought forward

13th Fiscal Period(July 1, 2008 December 31, 2008)(information only)(January 1, 2008 June 30, 2008)￥4,432,832,578￥4,451,575,413

4,432,500,000(7,092)￥
332,578

4,451,250,000(7,122)￥
325,413

In accordance with the distribution policy stipulated in Article 28-2 of the Articles of Incorporation, JPR
will be able to distribute only to the extent of the profits and needs to distribute in excess of 90% of JPR's
distributable income as stipulated in Article 67-15 of the Special Taxation Measures Law. Based on thispolicy, JPR decided on a total distribution of 4,432,500,000 yen for the 14th fiscal period (4,451,250,000 yen
for the 13th fiscal period). This is the maximum value arrived at when the number of units outstanding(625,000 units) is multiplied by an integer, within the limit of retained earnings for the respective fiscal
period. Furthermore, JPR does not make cash distributions in excess of the profit as stipulated in Article28-4 of the Articles of Incorporation.

55

Report of Independent Auditors

56

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

14th Fiscal Period

13th Fiscal Period￥ 4,433,509￥ 4,452,203

1,800,230

1,819,525

12,7489,512Interest income(32,594)(14,869)

Interest expenses

1,048,213

897,760(July 1, 2008 December 31, 2008

(January 1, 2008 June 30, 2008)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES :Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs

49,863(48,286)

Decrease (increase) in prepaid expenses(45,648)

32,075

Increase (decrease) in accounts payable(12,795)

69,216

Increase (decrease) in accounts payable-other(21,451)

23,774

Increase (decrease) in accrued consumption taxes(1,804)43,439(8,437)28,010Decrease (increase) in accounts receivable-trade

Increase (decrease) in advances received
Decrease in property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes (paid) refund

Net cash provided by (used in) operating activities

3,489,138(28,115)(40,191)

10,682,855

7,272,168

32,594

14,869(1,050,505)(915,997)(4,490)233,406

9,660,454

6,604,447(9,825,433)(22,145,989)

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust(351,440)(471,016)(1,543,218)

Purchase of intangible assets(6,900)

Payments for lease and guarantee deposits
Repayments of tenant leasehold and security deposits received(79,008)(624,781)

Proceeds from tenant leasehold and security deposits received

374,807853,372

Repayments of tenant leasehold and security deposits in trust received(247,530)(174,842)

117,273

203,720(10,011,333)(23,909,654)

Increase in short-term loans payable

18,692,000

20,800,000

Decrease in short-term loans payable(16,312,000)(6,008,000)

3,400,000

16,000,000

Proceeds from tenant leasehold and security deposits in trust received

Net cash provided by (used in) investment activities
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES :Proceeds from long-term loans payable

3,000,000

Proceeds from issuance of investment corporation bonds(10,000,000)

Redemption of investment corporation bond

(22,632)

Payments for investment corporation bond issuance costs
Dividends paid

Net cash provided by (used in) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIODCASH AND CASH EQUIVALENTS AT END OF PERIOD(4,450,277)(4,172,992)

1,329,722

19,596,375

978,843

2,291,168

33,588,746

31,297,578￥34,567,590￥33,588,746

57

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

Notes to Statements of Cash Flows(Thousands of yen)

14th Fiscal Period
Breakdown of cash and cash equivalents
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

58

13th Fiscal Period(July 1, 2008 December 31, 2008)
As of June 30, 2008

(information only)(January 1, 2008 June 30, 2008)
As of December 31, 2007

￥19,706,912￥18,461,764

14,860,678￥34,567,590

15,126,982￥33,588,746

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

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

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

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

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

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

Real Estate Asset

Target Ratios
By Asset Class

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

By Location

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

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

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

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

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

The table below indicates the definitions of the regions.
RegionCategory

60

Tokyo CBDs

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

Greater Tokyo

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

Other Cities

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

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

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

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

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

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

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

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

64

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

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

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

65

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

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

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

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

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

66

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

Distributable Amount

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

2 Determining Amount of Distribution

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

Retained Earnings

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

Distribution of Cash Exceeding Earnings

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

Method of Distribution

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

Extinctive Prescription

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

67

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

Date of Establishment
September 14, 2001

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders
More than once every two years

Cash Distribution Payment Eligibility

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

Transfer Agent

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

Location of Records

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

Mailing Address

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

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

Web Site

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

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

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

Cash distributions September

AugustAnnouncement of the fiscal
period results

Appropriate disclosure
on web site

June

Fiscal period ends

March
April

February

Announcement of
the fiscal period results

Cash distributions

Release of Business Report

This document contains a translation of selected information described in the Financial Statements and Performance Information Report
prepared pursuant to the Investment Trust Law of Japan and the Financial Instruments and Exchange Law, for the period from July 1,2008 to December 31, 2008 of Japan Prime Realty Investment Corporation (JPR). This English language document was prepared solely
for the convenience of and reference by non-Japanese investors and is not intended to constitute a disclosure document. The Japanese
language Financial Statements and Performance Information Report for the aforementioned period should be referred to as the originalsof this document. English translations for legal, accounting, tax and business concepts used herein may not convey precisely identicalconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if
there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English documents,
the original Japanese documents will govern the meaning and interpretation. Neither JPR, Tokyo Realty Investment Management, Inc.,
nor any of their respective directors, officers, employees, partners, unitholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of English translations or the selection of portion(s) of any document(s) translated into
English. No person has been authorized to give any information or make any representations other than contained in this document
in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon
as having been authorized by JPR, Tokyo Realty Investment Management, Inc., or any of their respective directors, officers, employees,
partners, unitholders, agents or affiliates. The financial statements of JPR have been prepared in accordance with generally accepted
accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions. Many provisions of this document contain information that constitute forward-looking statements.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may
differ materially from those in the forward-looking statements as a result of various factors.

68