J-PRIME

28th

JAPAN PRIME REALTY INVESTMENTCORPORATION
Presentation Material

For the 28th Fiscal Period Ended December 2015
February 18, 2016
（Asset Manager）
Tokyo Realty Investment Management, Inc.

Table of Contents
and Glossaries
Explanations and definitions of terms used in this material

Table of Contents
1. Characteristics of JPR

1.

2p

2. Operating Results and Forecasts of Financial Results 4p
3. Management Status and Strategies

14p

3-1. Internal Growth15p

3-2. External Growth19p

3-3. Financial Operations and Others

21p

3-4. Future Growth Target

25p

4. Appendix

26p

Disclaimer
A)

This material contains information that constitutes forward-looking statements. Such forwardlooking statements are made by Japan Prime Realty Investment Corporation and Tokyo Realty
Investment Management, Inc. based on information currently available, and are therefore notguarantees of future performance. Actual results may differ materially from those in theforward-looking statements as a result of various factors including known or unknown risks
and uncertainties.
This material is solely for the purpose of providing information and it is not intended for the
purpose of offering or soliciting investment, or as a recommendation to purchase or sell any
specific product. Please refer any inquiries for possible purchases of units or other products ofJapan Prime Realty Investment Corporation to a securities dealer.
Although Japan Prime Realty Investment Corporation takes all possible measures to ensure theaccuracy of the content provided in this material (including references to legislation andtaxation), it makes no guarantee as to the accuracy of the content. Furthermore, the content
may be subject to change without prior notification.
Please further note that this English material is a provisional translation of the original
Japanese material.

B)

The photos used in this material include those of the assets other than what JPR owns or plansto acquire. Please note that for land with leasehold interest, JPR owns only the land.

C)

Unless otherwise noted, the figures indicated in the body texts of this material are rounded
down to the nearest specified unit for monetary amounts and space areas, and rounded off tothe nearest specified unit for percentages and other figures. Accordingly, the sum totals ofmonetary amounts or percentages of respective items may not match the sum totals of actual
figures.

2.
3.
4.
5.
6.
7.

8.

9.

10.
11.

12.

13.

14.
15.
16.

17.

Acquisition price
The sales price indicated in the purchase agreement for properties owned by JPR (exclusive of expenses related to acquisition, property taxes,
city planning taxes and consumption taxes)
Diversification
The Investment ratio and Tenant Occupancy Ratio indicates the ratios based on the acquisition price for the former and the leasable space forthe latter
Occupancy rate (concluded contracts)
Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded contracts.
Occupancy rate (generated rents)
Total leased space excluding leased space subject to rent-free periods / total leasable space
Average occupancy rate
Average figure of the occupancy rates at the end of each month of the fiscal period (period average of occupancy rates at end of months)
Average unit rent
Total monthly rent (including common charges) / total leased space
Calculated based on the monthly rents indicated in the lease contracts with tenants
Number of tenants
The number of tenants only includes the parties with whom JPR has concluded lease agreements for the building floors. When a single tenantleases multiple rooms, it is counted as one if the tenant uses the same property. If the leased rooms are in multiple buildings, the tenant iscounted in plural.
NOI yield(Rent revenue - real estate – expenses related to rent business + depreciation) / acquisition priceThe rent revenue - real estate, expenses related to rent business and depreciation in the formula above are calculated and annualized by dividing
their respective actual values by the number of operating days for the relevant fiscal period and then multiplying them by 365 days.
NOI yield after depreciation(Rent revenue - real estate – expenses related to rent business) / acquisition priceThe rent revenue - real estate, expenses related to rent business and depreciation in the formula above are calculated and annualized by
dividing their respective actual values by the number of operating days for the relevant fiscal period and then multiplying them by 365 days.
Ratio of long-term, fixed interest rate debts
Long-term interest-bearing debts with fixed interest / interest-bearing debts
Average maturity
Average maturity is a weighted average calculated by dividing the remaining periods to the repayment dates and redemption dates of borrowings
and investment corporation bonds at the end of each fiscal period by the balance of respective borrowings and investment corporation bonds atthe end of each fiscal period (for borrowings with scheduled repayment in installments, the weighted average of the remaining periods to thescheduled repayment dates of each installment payment in accordance with the relevant repayment amount)
Average debt costs
Sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment
corporation bond management expenses, divided by the number of business days for the relevant fiscal period or relevant period and annualizedby multiplying by 365 days / average balance of borrowings and investment corporation bonds for each fiscal period.
LTVInterest-bearing debts / total assets (based on total assets)
There are other calculation method of LTV
LTV (based on unitholder’s capital)= Interest-bearing debts/ (interest-bearing debts+ unitholder’s capital)
LTV (based on gains and losses from valuation)= Interest-bearing debts/ (total assets+ unreallized gains or losses from valuation)
Unrealized losses refer to the difference between appraisal value and period-end book value.
NAV per unit
(Unitholders’ capital + reserve for reduction entry, etc. + unrealized gains or losses) / number of units outstanding
Ratio of unrealized gains or losses(Appraisal value – period-end book value) / period-end book value
Cap rate
Capitalization rate by the direct capitalization method is indicated. Direct capitalization method is one of the methods to calculate the value
estimated by income approach (a method to estimate the value of the target property by calculating the sum total of present value of the net
operating income which the target property is expected to generate in the future), and capitalizes the net operating income of a certain period byusing the capitalization rate.
Tokyo
Tokyo defined by JPR as its investment area collectively refers to Central Tokyo and Greater Tokyo as defined below, and Other Cities
refers to other regions.
* 1. Central Tokyo
Chiyoda, Chuo, Minato, Shinjuku, Shinagawa , Shibuya Wards* 2. Greater Tokyo
All other areas of Tokyo, Chiba, Kanagawa, Saitama, Prefectures11. Characteristics of JPR

2

1. Characteristicsof JPR

Large Scale REIT Focused on Office Properties in TokyoJapan Prime Realty Investment Corporation (JPR) will work to achieve stable growth of its cash distributions
based on the quality of its properties and through solid asset management.
n Characteristics of JPR (as of Dec. 31, 2015)
Portfolio

Strong Financial BaseSponsorCombination portfolio with focused investment in officeproperties in Tokyo

Financial base on the basis of conservatively controlling
LTV, lengthening debt maturity and shifting to debts
with fixed interest rate

Sponsor support mainly from Tokyo Tatemono, the mainsponsor, as well as from Taisei Corporation, Yasuda Real
Estate, Sompo Japan Nipponkoa Insurance and Meiji
Yasuda Life Insurance

Properties; Total
acquisition price62 properties ; 410.3 billion yen

Investment ratioby asset class

OfficeInvestment ratio
by area
Ratio ofunrealized gains
or losses

Investment Area

76.8% ;

Tokyo

Retail23.2％

83.1%; Other city 16.9%
4.9％

LTV

42.1%

Ratio of fixed interest
rate debts

99.4%

Average maturity

4.0 years

Credit rating status

AA- (R&I) ・ Ａ(S&P)

Major Properties Acquired from Sponsors, etc.

Lenders of Interest-bearing Debt

RetailCorporation
Sendai
Niigata

Fukuoka

311.6 billion yen

Diversification of Lenders and Utilization of Investment
Corporation Bonds

Tokyo Office
Other Cities Office

NagoyaOsaka
Kobe

Total amount of acquisitions fromsponsors, etc. and based on
information provided by sponsors

Tokyo

Bonds 24%
Cooperative
financial
institution
Regional Bank

2%

Interest32%
Bearing
Debt Status

Naha

Olinas Tower

JPR Sendagaya Blg.

Yurakucho Itocia

Kawasaki Dice Bldg.

Yakuin Business Garden

Mega Bank

176.2 billion yen
24 financial institutions

8%8%

Wakayama

The Otemachi Tower(Land with Leasehold Interest)

Trust Bank

9%
Insurance
Company

17%(Note)

Large Bank

Total amount of acquisitions from sponsors, etc. and based on information provided
by sponsors represents the accumulated amount of the acquisition price of the realestate properties JPR has acquired since listing from the sponsors, etc. or based on theinformation provided by the sponsors, and includes already sold assets. Sponsors,
etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity
investment. The same applies hereafter.

3

2. Operating Results andForecasts of Financial Results42. Operating Resultsand Forecasts ofFinancial Results

Financial Highlights for the 28th Fiscal Period Ended
December 2015 (1)DPU came to JPY6,588 for the 28th fiscal period and the 29th fiscal period is forecast to be JPY6,630
Steadily increased DPU toward even more stable growth after achieving the medium-term target of JPY6,500
Results
Distribution
per Unit• 28th period’s results surpassed previous period’s results and forecast,leading to upward revision of 29th period’s forecast[Dec. ’15 (result)][Jun. ‘16 (forecast)]

6,588 yen (up 2.6% period-on-period, up 1.2% from forecast）
6,630 yen（up 0.6% period-on-period, up 1.2% from forecast）• Impact of move-outs from certain properties in the 27th fiscal period wasneutralized by the lease-up of other properties, with the overall occupancy
kept at a high level
Average occupancy rate 97.4% (up 0.2%pt from forecast)Internal
Growth• Rent and other revenues are anticipated to increase in the 29th fiscal
period, when and after the lease-up of properties subject to leasing
reinforcement starts contributing
Rent revenue from existing property (period-on-period)[Dec. ’15 (result)] -21 million yen[Jun. ’16 (forecast)] +138 million yen (period-on-period)

Policies and Forecasts• Achieve the medium-term target of JPY6,500 andsecure future stable growth[Dec.’ 15 (result)]

6,510 yen（up 1.4% period-on-period）[Jun.’ 16 (forecast)]

6,550 yen（up 0.6% period-on-period）• Invite new tenants for the vacated space at Gotanda
First Bldg. and Kanematsu Bldg. Annex

Average occupancy rate 97.2% (down 0.3%pt period-on-period)• Raise new rents and promote upward revision

Rent revenue from existing property down 22 million yen(period-on-period)

Average unit rent remained almost flat in Dec.’ 15, and is forecasted to risesignificantly in Jun.’ 16External
GrowthFinancial, etc.

• Continuously investigated acquisition of office properties in central Tokyoand retail properties that should contribute to supplementing andenhancing earnings from the existing portfolio• Focused on reinforcing coordination with respective sponsor companies(including joint investment projects)• Participated in carefully selected bid deals, reinforced information collection
from directly accessible channels, and continually investigated asset
replacement• Maturity of debts was lengthened, and debt cost was also reduced
Average agreed period 7.8 years (+4.1 years)
Average interest-rate of interest-bearing debts 0.79% (-0.14%pt, compare with
before new financing)• Unrealized gains of 19.1 billion yen (up 9.7 billion yen period-on-period)(Note) Existing properties refer to properties that JPR has held throughout each fiscal period since the 27th fiscal period ended June 2015.

• Utilize the property acquisition capacity expected by
the public offering conducted in the previous fiscal
period• Reinforce pipelines for acquiring sponsors’ properties
and additionally acquiring co-owned properties
preferentially• Further promote lengthening of the maturity of debts
and diversification of repayment dates• Investigated the durations of debts with considerations
given to the impact on cash distributions• Further reinforce the financial base, in preparation for
future changes in the financial environment5

2. Operating Resultsand Forecasts ofFinancial Results

Financial Highlights for the 28th Fiscal Period Ended
December 2015 (2)27th Period

28th Period (forecasts)

28th Period (result)(Jun. 30, 2015)(Dec. 31, 2015)(Dec. 31, 2015)

Change29th Period (forecasts)

Change(27th period)(28th forecast)(Jun. 30, 2016)

Change(28th Period)

Operating revenue

14,251 mn

14,043 mn

14,105 mn

-1.0%

0.4%

14,202 mn

0.7%

Rent revenue and other income

13,252 mn

13,217 mn

13,261 mn

0.1%

0.3%

13,454 mn

1.5%

NOI

9,260 mn

9,368 mn

9,427 mn

1.8%

0.6%

9,424 mn

-0.0%

Net income

5,603 mn

5,684 mn

5,749 mn

2.6%

1.2%

5,788 mn

0.7%

Distribution per unit

6,419 yen

6,510 yen

6,588 yen

2.6%

1.2%

6,630 yen

0.6%

Total number of units outstanding

873,000 units

873,000 units

873,000 units−%−%

873,000 units−%

Properties owned at end of period

62 properties

62 properties

62 properties−%−%

62 properties−%

Total acquisition price409,520 mn

409,520 mn

410,306 mn

0.2%

0.2%

410,306 mn−%

Appraisal value

401,948 mn−

411,481 mn

2.4%

−

−

−

NOI yield (before depreciation)

4.6%

4.6%

4.6%

− %p

− %p

4.6%

− %p

NOI yield (after depreciation)

3.7%

3.6%

3.7%

− %p

0.1%p

3.7%

− %p

Period-end occupancy rate

96.7%

97.0%

97.4%

0.7%p

0.4%p

97.3%

-0.1%pAverage occupancy rate

97.5%

97.2%

97.4%

-0.1%p

0.2%p

97.4%

− %p

14.4 thousand yen

14.4 thousand yen

14.4 thousand yen

-0.0%

0.1%

14.5 thousand yen

1.0%

Average interest rate of interestbearing debts

1.21%

1.19%

1.19%

-0.02%p

− %p

1.17%

-0.02%p

LTV

42.1%

42.1%

42.1%

-0.0%p-0.0%p42.1%-0.0%p251,804 yen−

263,026 yen

4.5%

−

−

−

Average unit rent per tsubo

NAV per unit

(Note 1) The forecast for the current (27th) fiscal period was made upon the announcement of financial results of the previous fiscal period.
(Note 2) Figures for total number of units outstanding, properties as owned at end of period, total acquisition price, appraisal value, period-end occupancy rate, average unit rent per tsubo, LTV and NAV per unit are as of the end of each fiscal period.
(Note 3) The rental revenue and other income includes such fixed income as land rent, parking lot revenues and advertisement charges, as well as cancellation penalty, on top of rents and common charges.

6

2. Operating Resultsand Forecasts ofFinancial Results

Change in Distribution per Unit

DPU remains on track of stable growth, driven mainly by internal growth
Aim for further stable growth by achieving vigorously selective investments
n Change in Distribution per Unit
Forecast(yen/unit)

Actual result

7,000

6,588
6,500

6,351

6,093

6,006

6,000

Total numberof units(end of fiscal period)

6,510

6,180
6,050

6,000

0
0
5,500

6,630

6,419

6,360

6,150
6,031

Aim for further stable growth

5,800

5,800

Dec. 2012（22nd）

Jun. 2013（23rd）

Dec. 2013（24th）

Jun. 2014（25th）

Dec.2014（26th）

Jun. 2015（27th）

Dec. 2015(28th)

Jun. 2016(29th Forecast)

825,000 units

825,000 units

825,000 units

825,000 units

825,000 units

873,000 units

873,000 units

873,000 units

Dec. 2016(30th)

Jun. 2017(31st)

Dec. 2017(32nd)

7

2. Operating Resultsand Forecasts ofFinancial Results

Factors of Period Changes in DPU

For the 28th fiscal period, JPR successfully increased cash distributions through appropriate cost control,
despite impacts of tenant move-outs that took place in the previous period
In the 29th fiscal period and thereafter, existing properties are anticipated to continue recording a period-onperiod increase in revenuesn Factors of Period-on-Period Changes in DPU(yen/units)

Significant increase in revenue
anticipated, bolstered by the leaseup of properties subject to leasing
strengthening and raising of rents,
etc.

Despite impacts of large-scale
move-outs in 27th period, earnings
from existing properties will
decrease only slightly as lease-up ofother properties contributes torevenues

6,419

+15

(Note)

6,630
-127

+7

+32
+83

-63

+69

-24

-241

Jun. 2015(27th・Result)

-66

+85

+334

DPU

6,588

+158

Upward trend in revenue
anticipated to continue, with thelease-up and expiration of rent-free
periods making full-period
contributions

Rent
revenue(fixed)Other rental
revenue(floating)Expenserelated torentbusiness

Increase due to lack of expenses forrestoration to original condition,
which was recorded in 27th period,
and review of value enhancement
works, etc.

Rentalincomefrom newproperties

Dec. 2015(28th・Result)

Nonoperating
income, etc.

DPU

Rent
revenue(fixed)Other rental
revenue(floating)Expenserelated torentbusiness

RentalNonincome
operatingfrom newproperties income, etc.

Jun. 2016(29th・Forecast)

DPU

Rent
revenue(fixed)Other rental
revenue(floating)Expenserelated torentbusiness

Dec. 2016(30th・Forecast)

The factors of period-on-period fluctuations show the amounts obtained by dividing the period-on-period fluctuation amounts of respective periods by the total number of investment units outstanding at period end.

8

2. Operating Resultsand Forecasts ofFinancial Results

Statement of Income and Retained Earnings
for the 28th Fiscal Period Ended December 2015
（JPY mn）

Item

27th Period

28th Period(Jun. 30, 2015)(Dec. 31, 2015)

Changes

Breakdown of Increase/ Decrease in Income (JPY mn)
Increase Decrease

Rental revenue

13,15913,22364

External growth (properties acquired in 28th and 27th periods)

1,092

881

-211

74

Other rental revenue

Increase in NOI of properties acquired in 28th period

8

Rental revenue - real estate (a)14,251

14,105-146

Increase in NOI of properties acquired in 27th period

74

Increase in depreciation related to the above properties

Operating revenue

14,251

14,105-146

Property and other taxes

2,026

2,019

-7

Other expense related business

2,964

2,658

-305

Outsourcing expense
Utilities expense
Casualty insurance

527
898
27

531
876
28

4
-22
0

Repairs and maintenance

566

270

-296

Property management fee

238

228

-10

Management association accounts

576
129

581
142

5
13

OthersDepreciation

Internal growth (continuously owned properties)

Increase in NOI（Revenues） Decrease in rent revenue
Increaseincome(seasonal
factor,etc.) etc.)
Increaseininincidental
incidental
income(seasonal
factor,Decrease in cancellation penalty, etc.
Decreasein income equivalent to expenses for
Decrease in income equivalent to expenses for restoration to original condition
restoration to original condition

Increase in others（Expenses） Decrease in utilities expenses

1,854

1,875

20

6,845

6,553

-292

Asset management fees
Other operating expenses
Operating expenses

503
205
7,554

504
216
7,273

1
10
-280

Operating income
Profits (a-b)

6,697
7,406

6,831
7,552

134
146

Financial costs and other non-operating income and expenses

Net operating income (NOI)
Non-operating income

9,260
50

9,427
8

166
-42

Decreaseininsettlement
settlementof management
association（Revenues） Decreaseof management
associationaccounts
accounts
Decease in insurance revenue

1,073

994

-78

（Expenses）

108

98

-9

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income

1,181
5,566
37
5,603
5,603

1,093
5,746
3
5,750
5,749

-88
180
-33
146
146

Unappropriated retained earnings

5,623

5,769

145

873,000 units 873,000 units
6,419 yen
6,588 yen

- units
169 yen

Expenses related rent business (b)Interest expenses
Other non-operating expenses

Decrease in repairs and maintenance cost
Decrease in management association accounts cost

Increase in others
Increase in depreciation

Distributions per units (DPU)59
83

Due to lack of income recorded inJun.’ 15 resulting from agreed
cancellation at such properties as
Gotanda First Bldg. andKanematsu Bldg. Annex

55
0
22
296

Due to lack of implemented
works corresponding to theincome equivalent to expenses
for restoration to original
condition resulting from theabove agreed cancellation

12
12
11

46

+52 yen40

The item is recorded only in fiscal
periods ending June each year

2

Decrease in interest expenses

78

Decrease in other non-operating expenses

9(Note 2)

Temporarily decreased due totenant replacement

21

213

10

Additional acquisition of Shinjuku
Square Tower in the Jun.’ 15 andDec.’ 15+68 yen57

Increase in asset management fees and administration service(Note 1)
Total number of units outstanding at end of period+85 yen8

Increasein asset management fees and administration service fees
fees

Extraordinary income
Decrease in subsidy income

Conversion
to DPU33
33-38 yenRepayment loans Dec.’ 15 andreduction of cost as a result of
repayment and refinancing in
Jun.’ 15
Due to lack of government
subsidies for promoting energyefficient renovation and otherinitiatives

JPR added part of the retained earnings brought forward that had been internally reserved through the preceding fiscal period to the cash distributions
and delivered the amount arrived at when the number of investment units outstanding is multiplied by an integer as profit distributions, with the aim ofhaving the profit distributions deducted as expenses based on application of the special provision on taxation of investment corporations (Article
67-15 of the Act on Special Measures Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income
tax, etc.
Converted to DPU indicates the amount obtained by dividing the degree of period-on-period changes in profits by the number of investment units
outstanding at end of period. The same applies hereafter.

92. Operating Resultsand Forecasts ofFinancial Results

Comparison with Forecasts of Financial Results
for the 28th Fiscal Period Ended December 2015
（JPY mn）

Item

Rental revenue
Other rental revenue
Rental revenue - real estate (a)Operating revenue

28th Period

28th Period(Forecast)(Result)

Breakdown of Increase/ Decrease in Income (JPY mn)

Changes

Increase Decrease

13,212

13,22311

External growth (properties acquired in 28th and 27th periods)

881

50

11

830

Increase in NOI of properties acquired in 28th period

8

14,043

14,10562

Increase in NOI of properties acquired in 27th period

14,10562

0

14,043

Decrease in depreciation related to the above properties-3

2

Property and other taxes

2,023

2,019

Other expense related business

2,651

2,658

6

Outsourcing expense
Utilities expense
Casualty insurance

536
967
28

531
876
28

-4
-91
-0

Repairs and maintenance

169

270

101

Internal growth (continuously owned properties)

Increase in NOI（Revenues） Increase in rent revenue

Property management fee

224

228

3

Management association accounts

Others

585
139

581
142

-3
2

（Expenses） Decrease in utilities expense (seasonal factor, etc.)

Depreciation

1,875

1,875

-0

Increase in repairs and maintenance cost

Asset management fees

6,550
501

6,553
504

2
2

Increase in brokerage fee

Other operating expenses
Operating expenses

225
7,277

216
7,273

-8
-3

Operating income
Profits (a-b)

6,766
7,492

6,831
7,552

65
59

Net operating income (NOI)
Non-operating income

9,368
4

9,427
8

58
3

990

994

4

99
1,089

98
1,093

-0
3

Expenses related rent business (b)Interest expenses
Other non-operating expenses

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income
Unappropriated retained earnings
Total number of units outstanding at end of period

Distributions per units (DPU)

5,681
3
5,684
5,684

5,746
3
5,750
5,749

65
0
65
65

5,769

65

873,000 units 873,000 units- units
78 yen5,703

6,510 yen

6,588 yen

Decrease in others

Decrease in others non-operating expenses

Increase in depreciation
Decrease in asset management fees and administration service fees

Financial costs and other non-operating income and expenses（Revenues）

Increase in insurance revenue（Expenses）

Increase in interest expenses

Extraordinary income
Increase in subsidy income+13 yen

Additional acquisition of Shinjuku
Square Tower contributed in theDec.’ 15+61 yen

53
49
1
24

Decrease in incidental income (seasonal factor, etc.)

Increase in cancellation penalty, etc.
Increase in income equivalent to expenses for
Increase in income equivalent to expenses for restoration to original condition
restoration to original condition

Conversion
to DPU

32
36
5

Reduced electric expense of
decreasing fuel cost

91
101

Value enhancement works, etc.,
increased

11
18

1

6
− yen

0
3
3
0
0

− yen

Assumptions for the 28th Fiscal Period Forecast (Jul. 1, 2015-Dec. 30, 2015)• Investment properties owned: Total 62 properties （end of 27th period (Jun. 2015))• Average occupancy rate:
97.2％ （confirmed contracts）• LTV (based on total assets) : 42.1％ （28th period (Dec. 2015))（Note）The forecast for the current (28th) fiscal period was made upon the announcement of financial results of the previous fiscal period.

10

2. Operating Resultsand Forecasts ofFinancial Results

Forecasts of Financial Results
for the 29th Fiscal Period Ending June 2016
（JPY mn）

Item

28th Period

29th Period(Forecast)(Forecast)

Changes

Breakdown of Increase/ Decrease in Income (JPY mn)
Increase Decrease

Rental revenue

13,223

13,377154

External growth (properties acquired in 29th and 28th periods)

Other rental revenue

881
14,105823
14,201-57
96

Increase in NOI of properties acquired in 28th period−
14,1050
14,202096

Outsourcing expense

2,019
2,658
531

2,062
2,714
530

43
55
-1

Utilities expense
Casualty insurance

876
28

867
27

-8
-0

Increase in cancellation penalty, etc.

Repairs and maintenance

270
228

330
232

60
4

Decrease in others

581
142

581
144

-0
1

1,875
6,553
504
216

1,888
6,666
507
220

13
113
3
3

Operating expenses
Operating income
Profits (a-b)

7,273
6,831
7,552

7,393
6,808
7,535

119
-23
-16

Net operating income (NOI)
Non-operating income
Interest expenses

9,427
8
994
98
1,093
5,746

9,424
38
967
89
1,056
5,789

-3
30
-26
-9
-36
43

3
5,750
5,749
5,769

−
5,789
5,788
5,806

-3
39
39
37

Rental revenue - real estate (a)Gain on sale of real estate properties

Operating revenue
Property and other taxes
Other expense related business

Property management fee
Management association accounts

OthersDepreciation
Expenses related rent business (b)Asset management fees
Other operating expenses

Other non-operating expenses

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income
Unappropriated retained earnings
Total number of units outstanding at end of period

Distributions per units (DPU)

873,000 units 873,000 units

6,588 yen

6,630 yen

- units
42 yen1

Internal growth (continuously owned properties)

138

Decrease in incidental income (seasonal factor, etc.)

39

Decrease in repairs and maintenance revenue（Expenses） Decrease in utilities expenses (seasonal factor, etc.)

8

30
11

37
60
2
11
6

Increase in asset management fees and administration service fees

Financial costs and other non-operating income and expenses（Revenues） Increase in settlement of management association accounts

Decrease in others
Decrease in interest expenses
Decrease in borrowing expense

Increase in others

66
31
26
10

Gain on sale of real estate properties and extraordinary income

Gain on sale of real estate properties

0

Decrease in subsidy income

Will increase significantly due to
new leases (properties subject toleasing strengthening) andupward revision of rents

36
5Increase in repairs and maintenance cost

Additional acquisition of Shinjuku
Square Tower contributed-34 yen55

Increase in property and other taxes

Increase in others
Increase in depreciation（Expenses）+7 yen6
8

Increase in depreciation related to the above properties

Decrease in NOI（Revenues） Increase in rent revenue

Conversion
to DPU

Includes property taxes, etc. forthe additional acquisition of
Shinjuku Square Tower to berecorded as expenses
Increase in income valueenhancement works, etc. areassumed+75 yen1

The item is recorded only in fiscal
periods ending June each year

1
3

-3 yen3Compensation for part of the siteof JPR Musashikosugi Bldg. to beprovided for and included in theroad in an urban redevelopment
district

Assumptions for the 29th Fiscal Period Forecast (Jan. 1, 2016-Jun. 30, 2016)• Investment properties owned: Total 62 properties （end of 28th period (Dec. 2015))• Average occupancy rate:• LTV (based on total assets) :97.4％ (certain assumed contracts included on top of theassumptions for the 28th period)

42.1％ （29th period (Jun. 2016))

11

2. Operating Resultsand Forecasts ofFinancial Results

Forecasts of Rent Revenue-Real Estate and Expenses Related
to Rent Business for the 30th Fiscal Ending December 2016
（JPY mn）

Item

Rental revenue
Other rental revenue
Rental revenue - real estate (a)Property and other taxes

29th Period

30th Period(Forecast)(Forecast)

Changes

13,377823
14,201
2,062
2,714
530

13,450852
14,302
2,055
2,760
548

72
28
101
-7
46
18

Utilities expense

867

925

57

Casualty insurance

27
330
232
581

28
272
233
588

0
-58
1
7

144
1,888
6,666
7,535
9,424
950

163
1,895
6,711
7,591
9,486
1,108

19
6
45
56
62
158

Other expense related businessOutsourcing expense

Repairs and maintenance
Property management fee
Management association accounts

OthersDepreciation
Expenses related rent business (b)Profits (a-b)
Net operating income (NOI)
Capital expenditure
Net cash flow (NCF)

8,473

8,377

Breakdown of Increase/ Decrease in Income (JPY mn)
Increase Decrease

Conversion
to DPU− yen

External growth (properties acquired in 30th and 29th periods)

Increase in NOI of properties acquired in 30th and 29th period
Increase in depreciation related to the above properties

Internal growth (continuously owned properties)

Increase in NOI（Revenues） Increase in rent revenue

Increase in incidental income (seasonal factor, etc.)

72
80

Decrease in cancellation penalty, etc.

Decrease in others（Expenses） Decrease in outsourcing expense

Increase in utilities expenses (seasonal factor, etc.)
Decrease in repairs and maintenance cost

Increase in brokerage fee
Increase in depreciation+64yen

56
62

58

50
1
18
57
20
6

Upward trend of revenue willcontinue, with lease-up andexpiration of rent-free periods inthe 29th period making fullperiod contributions

Will decrease due to repairs andmaintenance conducted ahead ofschedule in the 29th period-95

Assumptions for the 30th Fiscal Period Forecast (Jul. 1, 2016-Dec. 31, 2016)• Investment properties owned: Total 62 properties （end of 28h period (Dec. 2015))• Average occupancy rate:

97.0％ (certain assumed contracts included on top of theassumptions for the 29th period)12

2. Operating Resultsand Forecasts ofFinancial Results

Balance Sheet for the 28th Fiscal Period Ended
December 2015
（JPY mn）

Item

27th Period

28th Period(As of Jun. 2015)(As of Dec. 31, 2015)

AmountCurrent assets
Cash and deposits
Cash and deposits in trust
Other current assets
Noncurrent assets
Tangible assets
Intangible assets
Investments and other assets
Lease and guarantee deposits

OthersDeferred assets
Investment corporation bond issuance costs

Investment unit issuance expenses

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loan payable
Current portion of investment corporation bonds

Other current liabilities
Noncurrent liabilities
Long-term loans payable
Investment corporation bonds
Tenant leasehold and security deposits

Total liabilities
Unitholders' capital
Surplus
Total net assets
Total liabilities and net assets%

Amount%ChangeAmount%25,56912,786
12,278505
392,957
387,816
4,796
344
145
198
251
207
44
418,778

6.1%
3.1%
2.9%
0.1%
93.8%
92.6%
1.1%
0.1%
0.0%
0.0%
0.1%
0.0%
0.0%
100.0%

25,81813,505
11,831
481
392,699
387,550
4,796
352
194
158
222
185
37
418,739

6.2%
3.2%
2.8%
0.1%
93.8%
92.6%
1.1%
0.1%
0.0%
0.0%
0.1%
0.0%
0.0%
100.0%

248
719
-447
-23
-257
-265
-0
8
49
-40
-29
-21
-7
-39

1.0%
5.6%
-3.6%
-4.7%
-0.1%
-0.1%
-0.0%
2.5%
33.9%
-20.5%-11.7%-10.6%-17.0%-0.0%

30,7651,000
23,332−
6,433
171,919
110,626
41,50019,793
202,685
210,395
5,697
216,092
418,778

7.3%
0.2%
5.6%
−
1.5%
41.1%
26.4%
9.9%
4.7%
48.4%
50.2%
1.4%
51.6%
100.0%

32,181
1,000
18,332
7,000
5,849
170,318
115,460
34,50020,358
202,500
210,395
5,843
216,238
418,739

7.7%
0.2%
4.4%
1.7%
1.4%
40.7%
27.6%
8.2%
4.9%
48.4%
50.2%
1.4%
51.6%
100.0%

1,415−-5,0007,000-584-1,601
4,834-7,000
564
-185
−
145
145
-39

4.6%
−
-21.4%
−
-9.1%
-0.9%
4.4%
-16.9%
2.9%
-0.1%
−
2.6%
0.1%
-0.0%

Cash and deposits status
End of 27th Period（JPY mn）
End of 28th Period

Change+271+582

Cash and deposits
25,06425,336(including in trust)
Tenant leasehold and security
10,955
11,538deposits (Note)(Note) Amount equivalent to leasehold deposits released from tenants (8,838
million yen at end of 27th period and 8,820 million yen at end of 28th
period) are excluded.

Noncurrent assets

Property acquisition(including incidental expenses)

Capital expenditure
Depreciation
Other
Total

（JPY mn）+807+846-1,875-36-257

Interest-bearing debt status

Total

Increase−
10,000−10,000Net assets（JPY mn）

Short-term loans payable
Long-term loans payable
Investment corporation bonds

Dividends from surplus

Net income
Total（JPY mn）

Decrease−
10,166−
10,166

Change

−
-166
−
-166

-5,603+5,749+145

13

3. Management Status andStrategies

14

3-1.
Internal Growth

Occupancy Status

The occupancy rate at end of period increased from 96.7% in the 27th period to 97.4% in the 28th period,
with the period-average figure kept at over 97%
n Changes in Move-In and Move-Out Spaces(㎡)

20,000Move-ins (left axis)

Move-outs (left axis)

Rate of move-ins (right axis)

Rate of move-outs (right axis)

15,8989,994

0-6,608-10,000-20,000(Forecast)

3.8
2.2

10,000n State of Major Leases-12,051

2.6

2.6
1.8
11,598-5,512

8,224-11,603

Jun. 2013

Dec. 2013

Jun. 2014

10,870-12,8902
8,607

Dec. 2014(Note) Rate of move-ins and move-outs = Move-in and move-out spaces of each fiscal period / total leasable
space at the end of the previous fiscal period

Dec. 2015

(%)

99.8

100

99.6

99.8

-4

Kanematsu Annex

Occupancy rate
Jun. 2015(Forecast)

96.9

97.0

97.2

97.5

97.4 +0.2%pt 97.2

95.4

95.7

95.9

96.2

96.1

95.8

Dec. 2013

Jun. 2014

Dec. 2014

Jun. 2015

Dec. 2015

100.0%(End of period)

Move-in0㎡＋100.0%pt
Change of space

2,291㎡

Major Move-in and Move-out (Dec.2015)
Property＋2,291㎡

Move-out

Move-inOccupancy rate
as of Dec.’ 15

1,376㎡

1,376㎡

100.0%MS Shibaura Bldg.

0㎡

1,960㎡

100.0%JPR Ichigaya Bldg.

445㎡

955㎡

100.0%

0㎡

620㎡

99.9%

Shinjuku Square Tower
Jun. 2013

Changes• Lease advertisement started in July after tenant’s cancellationin May 2015 and the completion of value enhancement works• With application made in September 2015, the leasing of theentire building to a tenant will start in March 2016 to occupy
all floors

Oval Court Osaki Mark West93.4

＋2,990㎡

Occupancy rate
Jun.’ 16 (forecast)

0.0%
100.0

＋70.5%pt
Change of space

2,990㎡

Move-out

90
880

70.7%
Move-in

0㎡

Retail properties
99.6

Changes• Started lease advertisement in July 2015 after valueenhancement works, following tenant’s cancellation in May
that year• Of the 6 standard floors, 5 floors have been occupied in Sep.
2015 (with downtime of approx. 2 months)• The occupancy rate rose to 91.4% after the tenant expanded
its leased floors by one floor in Feb. 2016

95.6

94
92

99.7

0.2%

99.9

98
96

Office properties

Occupancy rate
Dec. 2015

Move-out(period)n Changes in Average Occupancy Rates of Properties
Portfolio

Occupancy rate
Jun. 2015

-2

−271

-2.8
Jun. 2015

Gotanda 1st Bldg.

-7,370-7,641

-1.7
-2.6

-2.7

+2,262

4

0

-1.2

-1.6

11,764

2.4(%)• Invitation of new tenants to properties subject to leasing strengthening(Gotanda First Bldg., Kanematsu Bldg. Annex and Kanematsu Bldg.)
progressed smoothly• Downtime from start of lease advertisement to tenant application after valueenhancement works has tended to decrease, as an increase in the expansionof leased floors in the same building contributed to the decrease• With the rate of move-outs for office properties alone (not including retailproperties) staying at a 3 to 4% level on period average, JPR will work toincrease office occupancy (96.1% for the 28th period) while focusing on
raising rents upon tenant replacement

15

3-1.
Internal Growth

Status of Rent

Average unit rent continued to show an upward trend, as JPR proceeded with upward revision of rents andraising of new contract rents
n Status of Rent Revisions

n Changes in Average Monthly Rent per Unit

Changes in Revised Amount of Monthly Rent, Etc.

Average Monthly Rent per Unit

(mn yen/month)

Increase

Decrease(yen/tsubo)20

Portfolio

14,600
Amount equivalent to land
rent revision for The
Otemachi Tower (Landwith Leasehold Interest)10(+1.0%)
14,5000(+0.4%)

14,400-10-20(-0.0%)(+0.3%)(+0.2%)

14,300Dec. 2013

Jun. 2014

Dec. 2014

Jun. 2015

Dec. 2015

Jun. 2016(forecast)(Note) Revised amount of monthly rent, etc. indicates the sum total of the increase and decrease in monthly rent, etc.
revised for each fiscal period. In the increased amount for the 27th period, the revised land rent of The
Otemachi Tower (Land with Leasehold Interest) is recorded only for the CPI-linked portion excluding revisions toproperty taxes, etc. For the 29th period, the amount is calculated based on contracts confirmed at the moment.

Status in Dec. 2015 and Outlook for Jun. 2016
•No. of cases with upward revision(ratio of increased rent revision•Diversification area

Tokyo CBDs

60 cases
21.4%)
58%

Greater Tokyo 10%
Other cities•Rate of upward revision

Average32%

9.7％(-0.4%)(period)（ Figures in parentheses indicate rate of change from the end of previous fiscal period）

14,2000

Dec. 2013

Jun. 2014

Dec. 2014

Jun. 2015

Dec. 2015

Jun. 2016 (end of period)

14.3

14.3

14.3

14.4

14.4

14.5

Period-on-period (%)(-0.4)(+0.2)(+0.3)(+0.4)(-0.0)(+1.0)

Assumption ofsame-store

14.3

14.3

14.3

14.4

14.4

14.5

(+0.3)(-0.0)(+0.0)(+0.6)(+0.2)(+0.3)

Portfolio

Ratio by Upward Revision Rate(based on the number of cases)
More than 10%
25 cases 42%

Less than 5%
17 cases 28%
Increasing inrevised amountof monthly rent

(thousand yen/tsubo)(thousand/yen)

Period-on-period (%)(Note)(forecast)

Assumption on a same store basis represents the average unit rent of the properties JPR has owned
continuously since Dec.’ 13, estimated on the condition that vacancies at end of each fiscal period are fully
occupied with assumed move-ins at the market rent, on top of the above assumption.

13.3 million yen(comparison of rents including common charges)
5% to 10%18 cases 30%

16

3-1.
Internal Growth

Outlook of Rent Revenue

An increasing trend of revenues will continue as JPR is expected to see a significant increase in revenues in
the 29th period as it strives to achieve its target for raising rents
n Forecast of Occupancy Rate and Rental Revenue
Change in Rental Revenue and Breakdown of Factors of Change
Rental revenue and cancellation
Increase inpenalty
move-ins
Increase and decrease in others (including ncrease anddecrease in cancellation penalty)(million yen)

Increase in revision
Decrease inrents
move-outs
Increase in newly acquired properties (from acquisitions in
28th and full-period revenue from acquisitions in 27th)

Amount of Period-on-Period Changes due to MoveIns/Move-Outs and Rent Revisions

Sum total of rental revenues in the graph to the left and amountsof changes due to other factors
Move-in(million yen)Move-out

600

Revision rent

Cumulative total (after Jun.’ 14)

Total (period)

+49

+362

+291
+41

+114

+362
-340
+93

+454
-353

13,500+15 13,454

+295
-416

-49 13,476

+36

-49

13,500+247(+2%)

13,261

13,252

0

-600

+86

(+93)

(+21)

+176

(+141)(+61)

Dec. 2015

Jun.'14

Dec.'14

Jun.'15

Dec.'15

Jun.'16(forecast)

Major Move-Ins and Move-Outs Expected inJun. 2016 and Thereafter

Jun. 2016

Dec. 2016(28th; Actual result)(29th; Forecast)(30th; Forecast)TargetConcluded contract

97.4

97.4

97.0

97.5

Generated rents

95.2

96.3

96.2

96.5

(Note 1) Rent revenue includes land rent, parking lot revenues and advertisement charges as well as rents and common charges. The occupancy rate and rent revenue for the 29th fiscal
period ending June 2016 are calculated based on contracts confirmed at the moment (including new contracts already concluded and notification of cancellation received). The
occupancy rate and rent revenue for the 30th fiscal period ending December 2016 are calculated based on the same preconditions for the 29th fiscal period as well as on someassumed expectations.
(Note 2) The internal growth target, which is nothing but JPR’s policy target for its management, is not related to the operating forecasts, etc. that JPR announces, and does not guaranteethat the figures are achieved.

(+71)

(-27)

Despite a temporary decrease, the 28th period continued toshow an upward trend in revenues due to internal growthMove-out
0
13,000+149

Move-in

Dec.'16 (period)(forecast)(㎡)

Change ofspace

Kanematsu Bldg.

1,222

2,427

1,205

JPR Dojima Bldg.

1,962

870

-1,092

MS Shibaura Bldg.

2,941

1,960

-980

Olinas Tower

2,092

1,403

-686

Benetton
Shinsaibashi Bldg.

5,303

3,366

-1,937(Note)For Benetton Shinsaibashi Bldg., the master lease agreement with the tenant to whom the entire
space of the property is leased will be cancelled as of July 19, 2016, and JPR plans to succeed
the sublease agreements with end tenants. This will increase the leasable floor space from thecurrent 5,303m2 to 3,842m2.

17

3-1.
Internal Growth

Initiatives on Rising Rents

Endeavor to promote leasing with a focus on raising rents by flexibly reviewing the target rent increase inaccordance with changes in the market
n Basic Policyn Promoting Rent Negotiations by Setting Up Target Rents(thousand yen/ tsubo)

Strategically use
1.
target rents

Use target rents, which are rents established by the asset
management company based on its policy as a target for raising rents
upon concluding new contracts or renewing contracts, after making
reviews each fiscal period in reference to market conditions andsurveys by third-party institutions, etc.

Reinforce
2. investments forvalue enhancement

On top of enhancing property competitiveness, proactively invest ininterior fittings and facilities, etc. that meet tenant needs, with anintention to raise new contract rents

17

Continuously
3. enhance CS (tenantsatisfaction)

Deliberately respond to tenants and create safe and secured
environment as important initiatives that affect rent negotiations aswell as help prevent contract cancellations

16

Strategically use
4.
rent-free periods

Despite a decrease in rent revenue at the initial stage of lease contracts,
work to raise rents, etc. for the later periods and intend to conduct
upward revision of rents upon contract renewal

015

Loss of rents (left axis)
Occupancy rate of concluded contract (right axis)
Occupancy rate of generated (right axis)

400
350
300
250
200

96.9

97.0

95.6

-2.3

-2.4
94.5

93.3

-2.7

97.2

-1.4
95.8

97.5

-1.8
95.7

94.3

100
50
Jun.'13

Under the current policy, focus on
raising rents instead of prioritizing-2.2 shortening of the rent-free periods

Dec. '13

Jun. '14

Dec. '14

Jun.'15(+2.7%)(+1.5%)(%)

100(Note)（ Figures in parentheses indicate rate of change from the end of previous fiscal period）
Jun. '14

Dec.'14

Jun.'15

Dec.'15

Jun.'16

Dec.'16

Jun.'17

Target rent increase = Target rents for respective properties established in each fiscal period (includingcommon charges and excluding certain retail properties, etc.) x leasable space of respective properties /total leasable space(period)n Promotion of Value Enhancement Works(mn yen)

2,000

98
96

(+1.5%)

Revise target rents
upward each fiscal
period, and aim toraise new contract
rents as well as
promote upwardrevision of rents

Depreciation
Repairs and maintenance cost
1,883

Capital expenditures
Value enhancement work cost

1,869

1,834

1,841

845

681

706

419

438

Jun.'14

Dec.'14

1,854

1,875

660

846

1,500

94

95.2

If policy is changed toward
shortening the rent-free periods in
response to the future market
environment, the loss of rents(JPY180 million for the 28th
period) is assumed to represent a
potential for a future increase inrevenues

150

0

97.4

Target rent(+2.9%)n Potential for Increased Revenues with Expiration of RentFree Periods(mn yen)18

Dec.'15(period)(Note) Loss of rents indicates the amount of rents, etc. which correspond to the leased spaces subject to rent exemption
due to granting of rent-free periods and do not contribute to the revenue for respective fiscal periods.

92

1,000

90
88

500

86
84
0

0

594
214

Jun.'13

317

Dec.'13316

Jun.'15

233

Dec.'15(Note) Repair and maintenance expenses indicate the amount obtained by deducting repair and maintenanceexpenses corresponding to income equivalent to expenses for restoration to original condition from theamount actually recorded in each fiscal period.

(period)18

3-2.
External Growth

Continue Policy of Vigorously Selective Investments

Implement external growth strategy that focuses on quality by taking advantage of the acquisition capacity
through debt financing
n Status of Property Acquisition Pipelines and Co-Owned
Properties, Etc. (As of December 31, 2015)

n Acquisition Environment• Transaction prices continue to show an upward trend, with available blue-chipproperties remaining scarce• Cap rates further decreases even for properties that are located in regional
cities or somewhat inferior in terms of specifications• There is an increasing number of cases with market price that factored in asignificant degree of rent increase in the future

Investment Ratio of Co-owned
Properties, Etc.

Breakdown of Property
Acquisition Pipeline(based on acquisition prices)(based on accumulated acquisition prices)

Acquired other thanfrom sponsors

Co-owned properties,
etc.

Acquired fromsponsors

134.0 billion yen 30%

50% 221.4 billion yen

57%

n Acquisition Policy• Continuously investigate acquisitions, primarily of office properties in central
Tokyo and retail properties that should contribute to the portfolio growth• Reinforce information collection from directly accessible channels, which may
enable preferential negotiations of co-owned properties, etc. and negotiate
deals.
• Continue investigations of property replacement with considerations given to thegrowth potential, unrealized gains or losses, etc.

Full owner ship 43%

Acquired based on
20%
information
provided bysponsors

32 properties
175.6 billion yen

90.1 billion yen

n Investigation Status of Investment Projects

Change in Number of Cases with Property Information Obtained
and Investigated by TRIM
Jun.’13

Target1.

2.

3.

Pipeline

Office properties inTokyo that allow
expectations for
growth• Continuously obtain property information from thesponsors (including in joint investment projects)• Reinforce relationship for additional acquisitions basedon preferential negotiation rights for co-ownership,etc.

Urban retail properties
that can secure afterdepreciation yield• Continuously investigate properties developed by thesponsors and properties through warehousing
arrangements, etc.

Properties in regional
cities featuring highstability of earnings• Investigate properties that may be acquired innegotiated deals from directly accessible channels

30 properties
234.7 billion yen

Number of caseswith information
obtained
Number of caseswith information
investigatedDec. ‘13

Jun. ‘14

Dec. ’14

Jun. ‘15

Dec. ‘15

131

108

119

84

84

64

47

51

36

35

40

19

State of 28th Period (Dec. 2015)

Ratios of number of cases with information obtained (outerring) and number of cases with information investigated(inner ring)

Retailproperties

30%

32%
Office properties
in other cities

25%（cases）

21%

47%

Office properties
in Tokyo(Reference) Major reasons for suspending
investigation

Others
4%
Specs
16%

45%

40%

Location

Price40%(Note) Others: Ability to replace tenants, use
and abidance with laws.

19

3-2.
External Growth

Acquired Additional Ownership of Blue-chip Property
in Central Tokyo
Shinjuku Square Tower（Shinjuku Ward, Tokyo)

Acquisition
price

786 million yen

Appraisalvalue

921 million yen

NOI yield(Assumed on
acquisition)

NOI yield after
depreciation(Assumed on
acquisition)

Cap rate(as of October,2015)

n [Highlights of Acquisition]• Following the 27th period, JPR additionally acquired interest by
utilizing the preferential negotiation rights among co-owners,
increasing its ownership ratio to 67.4%• With the latest round of acquisitions, JPR’s ownership ratio forthe section of compartmentalized ownership (2nd-17th floors of
the property) also surpassed the majority at 50.7%, allowing
anticipation for enhanced asset value[History of Acquisition]

4.4%
3.4%
4.2％

Acquisition
month

Additional
acquisition ratio

Total owner ship
ratio

Jun. 2004

38.2%

38.2%

Sep. 2008

0.6%

38.8%

Mar. 2015

23.9%

62.7%

Oct. 2015

4.7%

67.4％

[Characteristics of Property](Note 1) Assumed NOI yield upon acquisition and Cap rate after
depreciation : Calculated based on the assumed income andexpenditures for the 10 years that take into account suchfactors as tenant replacements and rental fluctuations
occurring in the ten years after the acquisition of theproperty; the average occupancy rate for the period isassumed to be 96% (for office sections).
(Note 2) Appraisal yield indicates the capitalization rate based on
direct capitalization method.

•

Ultra-skyscraper with 30 floors above ground and approximately 300
tsubos for a single floor
The western part of the Nishi-Shinjuku area where the property is
located has an increasing concentration of tenants through large-scale
redevelopment projects in recent years, resulting in enhanced potentialof the area
Evaluated as a property that can secure stable tenant demand withrents, etc. set at a highly competitive level in the area, while having
specifications as a ultra-skyscrapern •Property Characteristics•

Location

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

Asset

OfficeFloors

B4/30F

Completion

October 1994

Total floor space

Total leasable space

29,053.16㎡(exclusive space of entire Shinjuku Square Tower)

1,353.05㎡(equivalent to ownership interest additionallyacquired in 28th period)

Occupancy

100% (as of late Feb.’ 16, assumption)

Acquisition date

October 21, 2015

20

3-3.
Financial Operations
and Others

Appraisal Values

Increase in the appraisal value, achieving unrealized gains of 19.1 billion yen
n Number of Properties with Changes inAppraisal Value and Cap Raten Period-end Appraisals
End of 27th Period
Jun. 30, 2015

End of 28th Period
Dec. 31, 2015

62

62

-

Appraisal value

401.9 billion yen

411.4 billion yen+9.5 billion yen

Book value

392.6 billion yen

392.3 billion yen-0.2 billion yen

9.3 billion yen

19.1 billion yen+9.7 billion yen

No. ofproperties

Unrealized gains
or losses
Ratio ofunrealized gains
or losses

2.4%

Change4.9%

Appraisal Value(properties)

60
50

(%)

30

50

25

40

20

30

19.1 billion yen 15

20

10

4.9%

28th

27th

26th

25th

24th

23rd

21st

22nd

20th

19th

18th

17th

16th

15th

14th

13th

12th

- 15

11th

-30

9th

- 10
10th

-20
8th

-5

7th

-10

6th

0

4th

0

5th

5

3rd

10

1st

51

50

30

20

20
7

2
Dec.'14

5

Jun.'15

4

10

2

0

Dec.'15

Maintain

Rising
56

50

50

30

9

Decline

56

12
6

6
0

0

0

Dec.'14

Jun.'15

Dec.'15n Change in Cap Rate

Ratio of unrealized gains or losses compared to the end of previous period (right axis)

2nd

60

56

(end of period)(end of period)(Note) The figures represent the number of properties of which appraisal value and cap rate changed after comparing
them at each point of time.

Unrealized gains or losses (left axis)

60(properties)

Decrease

400n Changes in Unrealized Gains or Losses(billion yen)

Unchanged

40

10+2.5%pt

Increase

Cap Rate(period)(%)

5.2

Portfolio

Central Tokyo Office

5.0-0.6%pt(compare with
Jun/’10)

4.8
4.6
4.4
4.2
0.0
4.0

Jun.'09

Jun.'10

Jun.'11

Jun.'12

Jun.'13

Jun.'14

Jun.'15(end of period)(Note) The graph shows the average cap rates of the 51 properties of the portfolio and the 16 office properties inCentral Tokyo, respectively, which JPR has owned since the end of June 2009.

21

3-3.
Financial Operations
and Others

Conservative Financial Operations Continued

Conducted financial operations with ratio of interest-bearing debt (LTV) set at the target range of up to
50% as a rule
Keep high ratio of long-term, fixed interest rate debts (99.4%)
n Main Datan Change in LTV

47.9

Dec.' 15

Jun.' 15

Dec.' 14

Jun.' 14

Dec.' 13

Jun.' 13

Jun.' 12

Dec.' 12

Jun.' 11

Dec.' 11

Jun.' 10

Dec.' 10

Jun.' 09

Dec.' 09

Jun.' 08

Jun.' 03

Dec.' 03

Jun.' 02

Dec.' 02

Dec.' 08

Long-tern borrowings

Short-term borrowings(end of period)（as of Feb. 18, 2015)

200
50

48

20

25

50

80

50

30

20

30

50

50

85
Dec.'26

20

110
60

Jun.'26

80

Dec.'25

91

Jun.'25

81

Dec.'24

0

51

83

40

20

130

81
10

50

195

Jun.'24

50

70

Dec.'23

100

Jun.'23

150

Dec.'22(Standard & Poor’s Ratings Japan K.K.)

A （Stable）
Short-term ： A-1
Long-term ：Corporate bond'sJun.'22

S&P

AA- （Stable）

42.1

46.2

44.9 45.7

250

Dec.'21（Rating and Investment Information, Inc.)

Corporate Credit Rating (Outlook)(JPY 100 million

Jun.'17

Credit Rating Agency（as of Feb 18, 2016）

Dec.'16n Credit Rating Status

45.2

n Diversification of Repayment Dates of Interest-Bearing Debts

Jun.'16(Note) Acquisition capacity represents an estimate figure for the debt procurement capacity when theupper limit of LTV (based on total assets) is set at the respective figures indicated above.

Jun.'21

1.19%

45.4

34.3

33.5

Dec.' 07

1.21%

Average interest rate ofinterest-bearing debts

30

45.4

46.1

35.7

Dec.'20

4.0 years

38.6

36.5

Jun.' 07

4.0 years

Average maturity of interestbearing debts

35.6

Jun.'20

99.4%

Dec.' 06

99.4%

41.8

46.3

45.2

42.1

Dec.'19

Ratio of long-term, fixedinterest rate debts

40.7

45.0

40.3

Jun.' 06

22.0 billion yen

44.7

42.1

Dec.' 04

21.8 billion yen

42.3

Jun.'18

Acquisition capacity(assumption of LTV45%)

66.1 billion yen

Jun.' 0465.8 billion yen

49.3

45.6

46.8

Dec.'17

Acquisition capacity(assumption of LTV50%)

R&I

50

Dec.' 05

42.1%

Jun.'19

42.1%

LTV

LTV (based on total assets)(%)

Jun.' 05

End of 28th Period

Dec.'18

End of 27th Period(period)22

Interest-Bearing Debt Costs Reduced and Shift to LongTerm, Fixed Interest Rate Debts Promoted

3-3.
Financial Operations
and Others

JPR proceeded with lengthening maturity of debts and diversifying repayment dates, while at the sametime reducing financial costsn Results of New Financing and Repayment (28th Period)
Summary of New Financing and Repayment
New Financing
Amount(JPY mn)

Total financing
amount10,000Term(years)Interest
rate

7.8 0.79%+4.1 years-0.14%pt

Repayment andRedemption
Amount Term Interest(JPY mn)(years)rate

1.2

10,0000.6

3.7 0.94%

0.4

4 0.92%

0.0
0

1,000

9 0.97%1,000

5 1.28%Amount2,000

8 0.82%2,000

3.5 0.90%

2,000

8 0.82%2,000

3.5 0.90%

The Iyo Bank, Ltd.

1,000

8 0.82%1,000

3.5 0.90%

The Hachijuni Bank,
Ltd.

1,000

5 0.49%1,000

3.5 0.90%

Sompo Japan Nipponkoa
Insurance Inc.

2,000

2,000

3.5 0.87%(Reference) Actual Result (Jun. 2016)
5,000

10

14

1.07
0.91

12

1.04
0.87

8
6
8.7 years
6.3 years

8.7 years

9.7 years

6.3 years4

7.8 years

2Jun.’ 13
Jun.'

Dec.’ 13
Dec.'

Jun.’ 14
Jun.'

Dec.’ 14
Dec.'

Jun.’ 15
Jun.'

0Dec.’ 15 (period)
Dec.'

18.8 bn.

21.0 bn.

16.5 bn.

13.0 bn.

7.0 bn.

10.0 bn.

(Note) Short-term debt is excluded.

n Change in Average Maturity and Average Debt Costs
(%)

2.0

Average maturity (right axis)
Average debt costs (left axis)
1.57

1.53

1.5

1.44

(years)

8

1.27

1.21

1.19

1.0

0.80％

10

0.79

0.2

1,000

Mizuho Bank, Ltd.

(years)0.8

8 0.87%

0.76％

0.98

1.0

1,000

8

Average maturity (right axis)
Average interest rate (left axis)

(%)

1.4

Details of New Financing and Repayment
Mitsubishi UFJ Trustand Banking, Corp.
Taiyo Life Insurance
Company
The Bank of Fukuoka,
Ltd.
The Chugoku Bank,Ltd.

n Changes in Average Maturity and Interest Rate

5,000

6

4

5 1.41%
0.5

0.0

3.4 years

3.5 years

3.8 years

3.9 years

4.0 years

4.0 years

2Jun.' 13

Dec.' 13

Jun.' 14

Dec.' 14

Jun.' 15

Dec.' 15

(period)

023

Diversification of Lenders and Utilization of Investment
Corporation Bonds

3-3.
Financial Operations
and Others

Established a lender formation with 24 financial institutions, making it the basic policy to do business withthem in negotiated deals
Issued investment corporation bonds in a dynamic and flexible manner since listing, aiming to diversify
lenders and reduce financing costsn Status of Borrowings
Lendern Status of Corporate Bonds

Balance as ofDec. 31, 2015
(JPY mn)Mizuho Bank, Ltd.

26,000

The Bank of Tokyo-Mitsubishi UFJ,Ltd.

18,00012,900Sumitomo Mitsui Banking Corporation
Shinsei Bank, Limited

9,000

Aozora Bank, Ltd.

7,900

Development Bank of Japan Inc.

7,520

Mizuho Trust & Banking Co., Ltd.

7,000

Mitsubishi UFJ Trust and Banking
Corporation
Meiji Yasuda Life Insurance
Company
Sompo Japan Nipponkoa InsuranceInc.

(as of Dec. 31, 2015)

Corporate Bonds

4,472

4.0 billion yen

ORIX Bank Corporation

3,000

Regional Bank

Shinkin Central Bank

3,000
3,000

14.0 billion yen

The Shinkumi Federation Bank
Taiyo Life Insurance Company

3,000

The Chugoku Bank, Ltd.

3,000

The Nishi-Nippon City Bank, Ltd.

3,000

The Hachijuni Bank, Ltd.

2,000

Resona Bank, Limited

2,000

The Iyo Bank, Ltd.

1,000

Daido Life Insurance Company

1,000Tokyo Marine & Nichido Fire
Insurance Co., Ltd.

1,000
1,000

The Norinchukin Bank
Sumitomo Mitsui Trust Bank
（Note 2）

Total borrowings

1,000
134,792(Note 1) All borrowings are unsecured and unguaranteed.
(Note 2) This is a short-term borrowing (floating rates of interest).
(Note 3) All borrowings are long-term, fixed interest rate debt except for (Note 2).

56.9 billion yen

24%

5,000
4,000

Mega Bank

41.5 billion yen
Cooperative
financial
institution

6,000

The Bank of Fukuoka, Ltd.

Lenders of Interest-bearing Debt

2%

Balance ofinterestbearing debt

8%

176.2

Trust Bank
14.0 billion yen

32%

9%Insurance
Company
16.4 billion yen

Balance as ofDec. 31, 2015
(JPY mn)

7th Series of Corporate Bonds

4,500

13th Series of Corporate Bonds

7,000

14th Series of Corporate Bonds

2,000

15th Series of Corporate Bonds

5,000

16th Series of Corporate Bonds

2,000

17th Series of Corporate Bonds

5,000

18th Series of Corporate Bonds

2,000

19th Series of Corporate Bonds

5,000

20th Series of Corporate Bonds

2,000

21th Series of Corporate Bonds

4,000

22th Series of Corporate Bonds

billion yen
8%

Name

Balance of corporate bonds

3,000
41,500n Status of Commitment Line
Contract17%
Large Bank
29.4 billion yen

LenderBalance as ofDec. 31, 2015
(JPY mn)Mizuho Bank, Ltd.

4,000

The Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking
Corporation

4,000
4,000

Aozora Bank, Ltd.

4,000

Mizuho Trust & Banking Co.,

4,000

Mitsubishi UFJ Trust and Banking
Corporation

4,000

Resona Bank, Limited
Total commitment line

4,000
28,00024

3-4.
Future GrowthTargetPursuing Stable Growth

JPR aims for further stable growth of DPU by achieving higher profitability through vigorously selective
investments on top of realizing steady internal growthn Future Growth Targetn Growth Target of DPU

Growth Target of Rent Revenue, etc.

Steps toward growth
External Growth
Carry out vigorously
selective investments(billion yen)

14.0
Increase from the 27th period results to
the growth target of 13.5 billion yen• Utilize acquisition capacity that has
expanded through conducting public
offering• Conclude accumulated acquisition
negotiations successfully+240 million yen (＋2%)

13.50

13.5

13.45

Continue stable growth centering on internal
growth, and aim to leap forward to further
growth by achieving external growth(yen/unit)

7,000• Investment target for the moment

6,630:20 billion yen

13.47

Furtherstable growth

Growth to
JPY 6,500

Maintain
JPY6,000

6,588
6,419
6,351

13.25

13.0

0
12.5

13.05

13.26

Internal growth
Maintain upward trend ofrevenues• Increase the occupancy rate of officeproperties• Realize unrealized revenues in therent-free periods• Raise the rent increase rate upon rent
revisionsDec.' 14 Jun.' 15 Dec.' 15 Jun.' 16 Dec.' 16 Target

Target Target

Financial Strategy
Simultaneously achieve
longer maturity and reduced
costs• Average debt costs
New borrowings(average of last 4 periods)

6,093

6,150
6,031

6,000

6,006

: 1.19%:0.95%

Further reduce the above difference of: -0.24%(period)0
Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec.' Jun. Dec.' Jun. (period)‘12 ’13 ‘13 ‘14 ’14 ’15 ’15 ’16 16 ’17 17 ’18 5,000(Forecast)(Note) These initiatives are just plans or targets, and there is no guarantee that they are actually implemented.

25

4. Appendix

26

4. Appendix

Fund Summary
27thJun. 2015

28th
Dec. 2015

NOI

9,260 million yen

9,427 million yen

EPS6,418 yen

6,586 yen

Operating revenue

6,697 million yen

6,831 million yen

FFO per unit

8,542 yen

8,733 yenInterest expenses

1,073 million yen

994 million yen

Net assets per unit

247,529 yen

247,696 yen

Net income

5,603 million yen

5,749 million yen

NAV per unit

251,804 yen

263,026 yen

FFO

7,457 million yen

7,624 million yen

Investment
unit price(immediately before the ex-rights date)

397,000 yen

420,500 yen

Depreciation

1,854 million yen

1,875 million yen

Market capitalization

346,581 million yen

367,096 million yen- million yen- million yen

3.3%

3.2%

6,796 million yen

6,778 million yen

PBR

1.6 times

1.7 times

660 million yen

846 million yen

NAV multiple

1.6 times

1.6 times

5,603 million yen

5,751 million yen

PER

30.9 times

31.9 times

Total assets

418,778 million yen

418,739 million yen

ROE

5.2%

5.3%

Balance of interest-bearing debts

176,458 million yen

176,292 million yen

FFO multiple

23.2 times

24.1 times

Net assets

216,092 million yen

216,238 million yen

AFFO payout ratio

82.4%

84.8%

Unitholder’s capital

210,395 million yen

210,395 million yen

Implied cap rate

3.6%

3.5%

Unrealized gains and losses

9,335 million yen

19,134 million yen

DSCR

7.9 times

8.7 times

NOI yield (acquisition price)

4.6%

4.6%

Interest coverage ratio

6.2 times

6.9 times(Note 1)
(Note 2)
(Note 3)(Note 4)

Gains or losses on sale of real estate properties

AFFO
Capital expenditure
Total cash distributions

NOI yield (book value)

4.8%

4.8%

NOI yield (appraisal value）

4.6%

4.5%

LTV (total assets)

42.1%

42.1%

LTV (gains or losses from valuation)

41.2%

40.3%

LTV (unitholder’s capital)

45.6%

45.6%

Number of units outstanding

873,000 unit

873,000 unit

Distribution per unit (result)

6,419 yen

6,588 yen

Distribution per unit (forecast)

6,510 yen

6,630 yen

27thJun. 2015

Dividend yield (forecast)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)
(Note 12)(Note 13)
(Note 14)
(Note 15)

28th
Dec. 2015

FFO＝ Net income＋depreciation−gains or losses on sale of real estate properties
AFFO= FFO−capital expenditure
EPS= Net income／ number of units outstanding (end of period)
NAV per unit＝ (Unitholder’s capital＋reserve for reduction＋unrealized gains or losses)／
number of units outstanding (end of period)
Dividend yield (forecast) = Distribution per unit (annualized, distribution per unit
(forecast)×2) ／Investment unit price
PBR = Investment unit price／ NAV per unit
NAV multiple = Investment unit price／ NAV per unit
PER= Investment unit price ／ Net income (annualized, most recent result ×2)
ROE＝ Net income (annualized, most recent result ×2) ／ Net assets
FFO multiple = Investment unit price ／ FFO per unit (annualized, most recent result ×2)
AFFO pay out ratio = Distribution amount ／ AFFO
Implied cap rate = NOI(annualized, most recent result ×2)／(market capitalization +balance interest-bearing debts – cash and deposit + tenant leasehold)
DSCR＝ (Net income ＋ depreciation ＋ interest expenses) ／ interest expenses
Interest coverage ratio ＝ Operating revenue ／ interest expenses
Interest expenses include investment expense on investment corporation bonds.

27

Track Record of JPR

4. Appendix

n Changes in Distribution per Unit
(JPY/unit)

6,912 6,873
5,738

6,081

7,122 7,092
6,996
6,671 6,370 6,411 6,509 6,873
6,671

6,933 6,770

5,680 5,611 5,876

6,430

6,419 6,588
6,093 6,031 6,006 6,150 6,351

3,731

2,545

Average distribution per unit: JPY 6,333 (except for 1st period)n Changes in Average Occupancy Rate
（%）

95.2

94.0

93.8

92.6

93.1

94.3

94.9

96.1

97.7

98.3

99.0

98.7

98.0

97.0

96.2

96.4

96.1
93.6

94.0

95.0

94.8

94.4

95.6

96.9

97.0

97.2

97.5

97.4

Average of period-average occupancy rate from the 1st through 28th fiscal periods: 95.9%

n Changes in Operating Revenue(JPY mn)

14,330

4,469

4,972

5,264

6,421

6,790

7,685

8,503

8,587

8,588

9,088

10,056 10,449

10,830 11,171

11,493

12,314 11,870

12,345
11,529 11,772

12,963 13,278 13,591

13,734 13,902 14,251 14,105

Jun.’ 02 Dec.’ 02 Jun.’ 03 Dec.’ 03 Jun.’ 04 Dec.’ 04 Jun.’ 05 Dec.’ 05 Jun.’ 06 Dec.’ 06 Jun.’ 07 Dec.’ 07 Jun.’ 08 Dec.’ 08 Jun.’ 09 Dec.’ 09 Jun.’ 10 Dec.’ 10 Jun.’ 11 Dec.’ 11 Jun.’ 12 Dec.’ 12 Jun.’ 13 Dec.’ 13 Jun.’ 14 Dec.’ 14 Jun.’ 15 Dec.’ 1528

Steady External Growth Achieved since Listing

4. Appendix

n Portfolio Management Standards
Target investment ratio by
Tokyo
80〜90%
area
Other Cities 20〜10%

Target investment ratio byasset class

OfficeRetail70〜90%
30〜10%(Note) Upon listing, JPR’s portfolio management standard set the target investment ratios at approximately 60% for Tokyo and 40% for regional cities by region and at approximately 80% for office properties and 20% for retail properties by asset class.
This standard was replaced by the present standard, which focuses on office properties in Tokyo, in the 16th Period ended December 2009.

n History of Growth of Portfolio Size
（JPY 100 million）

Office (Tokyo)

Office (Other Cities)

Retail properties

4,103

3,809
3,312
2,751 2,806
2,453

1,636
1,257
921

945

401

415

388

397

132

132

527

397
332

1,796

1,396
575

439
382

774

479
382

912

479

404

1,976 2,026

992

483

500

1,001

452

572

2,092

1,001

452

638

2,994

3,415 3,415 3,449

3,106

2,519
2,592

2,224
1,357

1,416

431

431

394

939

961

995

1,082

1,147

431

939

1,729

3,919

4,055 4,095
3,986 4,047 4,047

1,841

2,095

2,198

2,198

2,232

2,592

2,658

2,719

2,719

2,727

2,767

2,775

375

375

375

375

375

375

375

952

952

952

952

952

952

952

1,001

452

770

311

311

265

265

265

265

265

953

953

952

952

952

952

952

Jun.’ 02 Dec.’ 02 Jun.’ 03 Dec.’ 03 Jun.’ 04 Dec.’ 04 Jun.’ 05 Dec.’ 05 Jun.’ 06 Dec.’ 06 Jun.’ 07 Dec.’ 07 Jun.’ 08 Dec.’ 08 Jun.’ 09 Dec.’ 09 Jun.’ 10 Dec.’ 10 Jun.’ 11 Dec.’ 11 Jun.’ 12 Dec.’ 12 Jun.’ 13 Dec.’ 13 Jun.’ 14 Dec.’ 14 Jun.’ 15 Dec.’ 15

29

Overview of Portfolio

4. Appendix

Makes the best of management advantages of a compound portfolio, achieves high management returns

n Portfolio that Enhances Growth Potential andn Overview of Portfolio (as of December 31, 2015)

Profitability (as of December 31, 2015)

No. ofproperties

Leasablespace

No. of tenants

Occupancyrate

NOI yield

After-depreciationyield

62 properties

470 thousand ㎡

650 tenants

97.4%

4.6%

3.7%

n Enhanced Stability through Diversification (as of December 30, 2015)
Diversification by AssetClass

Diversification by Area

Retailproperties
23.2%

Other Cities
16.9%
Office76.8% properties
30.0%
Greater Tokyo

Complement stability by incorporating some retailproperties into the portfolio

Diversification by Size
Medium-sized

Very Large(Site area 3,000 to 10,000 ㎡)

31.4% Office 42.1%
property
asset size
315.1 bn.
yen
Large

(Site area
30,000 ㎡ or
more)

26.5%

(Site area 3,000 to 10,000 ㎡)

Address a variety of tenant needs by incorporating
properties with different sizes into the portfolio

Central Tokyo
53.2%

(%)

in Other Cities
7.7%
Office properties
9.2%
in Other Cities

15.5%
Retail properties
in Tokyo

Office properties Office properties
Officein Greater Tokyo in Other Cities Retail properties
properties in
JPY 37.5 bn
Central Tokyo

JPY 83.9
bn
平均NOI利回り4.6%
5.9%
5.6%

5
67.6%

JPY 193.6 bn
3.5%Office properties
in TokyoComplement profitability by vigorously selective
investment in properties in Other Cities

Diversification of Office Properties
in Tokyo by Rent Zone
Less than 15
thousand yen

Average NOI Yield and Asset Size (area, asset)

10

Diversification by Asset Class andArea
Retail properties

25 thousand yen
or more15%

17%
Officeproperty
asset size
241.5 bn.
36%
32% yen
15 to 20 thousand
20 to 25 thousandyenyenAddress a variety of tenant needs for relocating office by
diversifying rent zones(Note 1) The investment ratio is based on the acquisition price, and the investment ratio of office properties by size is based on
the acquisition price for the total floor space of an entire building.
Diversification of office properties in Tokyo by average rent zone indicates the ratios of the acquisition price by
average unit rent zone (including common charges and assuming occupancy of vacant spaces at the standard rent set
forth by JPR) to the total acquisition price of office properties in Tokyo that JPR owns. Furthermore, The Otemachi
Tower (Land with Leasehold Interest) is excluded from the calculation as it is a land property.

(Note 2)

While enhancing growth potential through investment in officeproperties in Tokyo, enhance profitability through diversified
investment in office properties in Other Cities and retail properties

JPY 95.2 bn
5.2%

Portfolio Average 4.6%
分散投資による収益性を向上
Bubble size = portfolio size (based on acquisition price)
Center of Bubble = NOI yield0n Growth Potential through Preferential Negotiation
Rights (as of December 31, 2015)
JPR owns preferential negotiation rights for most of the co-owned
properties, etc. that occupy approx. 57% of the portfolio
Co-owned properties,
etc.: 30 properties
Full ownership: 32
properties
JPY 175.6 billion

Ratio of co-owned
properties, etc.
(based on acquisition
price)

JPY 234.7 billion(Reference)

Total asset value of theentire buildings ofco-owned properties, etc.
Approx. JPY 924 billion(Note) The total asset value of the entire buildings represents the sum total of the values (converted
to acquisition prices) of the entire buildings of respective co-owned properties, etc. owned by
JPR, estimated after taking into account its equity interests in them, etc. Furthermore, thebuilding portion of The Otemachi Tower (Land with Leasehold Interest) is excluded from thesubjects of the estimate.

30

4. Appendix

Status of Tenant Diversificationn Ratio of Tenants Occupancy of 1％ or More (as of December 31, 2015)
1% or more by sponsors
2 Tenants

1% or more by other tenants(except for sponsor and retail)2 tenants・ 2.4%

3.5%

618

64.1%

Real Estate

Other 0.9%

Ratio toLeased Space Total Leased
(㎡)
Space
(%)

Shinjuku Square Tower
Tokyo Tatemono Co., Ltd.

Shinjuku Center Bldg.
Olinas Tower

45,343.40

9.7

Kawasaki Dice Bldg.
Tokyo Tatemono Honmachi Bldg.

2

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.6

3

Seiyu GK

Tanashi ASTA

31,121.71

6.7

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.2

5The LOFT Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.0

6Olympic Group Corporation

Musashiurawa Shopping Square

9,558.51

2.1

7

Sompo Japan Nipponkoa Insurance
Inc.

Yume-ooka Office Tower

8,253.43

1.8

8

Tower Records Japan Inc.

JPR Shibuya Tower Records Bldg.

8,076.85

1.7

Kawaguchi Center Bldg.
Sompo Japan Sendai Bldg.

9

YK Tokyo Prime Stage

7,875.50

1.7

10

Otemachi Tower(land with land leasehold)Taisei-Yuraku Real Estate Co., Ltd.

Rise Arena Bldg.

6,023.39

1.3

11

The Maruetsu, Inc.

Cupo-la Main Bldg.

5,963.00

1.3

5,514.71

1.2

Yume-ooka Office Tower

22.7%

8.5%

Services

536

16.8%

8.6%

12

Hitachi Urban Investment, Ltd

JPR Nagoya Fushimi Bldg.
JPR Hakata Bldg.

Number of
Office Tenants
Information andCommunication

10.1% 12.1%
Wholesale and Retail

Name of Occupying Property

Sompo Japan Wakayama Bldg.

n Office Tenant by Industry (as of December 31, 2015)

Finance and Insurance11.4%

Tenant Name(as of December 31, 2015)
Tenants of retail properties

Kanematsu Bldg.

1(Note) Ratio of occupancy = Leased space of each tenant / total leasable space
The number of tenants indicates the number of sublessees when the tenant subleases the relevant property
to sublessees and there is a concluded lease contract in which the rent to be paid by the lessee varies inaccordance with the situation of leasing to the sublessees.

Construction

Rank(Sompo Japan Sendai Bidg.)
・Tokyo prime stage Inc.

30.0% 1% or more by retail
9 Tenants

companies

Transportation 2.4%
Medical and Welfare 2.4%
Public Services
3.9%

Sponsor and sponsor group

・ Sompo Japan Nipponkoa
Insurance Inc.

Number oftenants
Less than 1%
605 tenants

n 20 Largest Tenants

Manufacturing

13

BENETTON JAPAN CO., LTD.

Benetton Shinsaibashi Bldg.

5,303.98

1.1

14

Nitori Holdings Co., Ltd.

Musashiurawa Shopping Square

5,285.40

1.1

15

Level-5 Inc.

Yakuin Business Garden

4,579.17

1.0

16

ATM Japan, Ltd.

Olinas Tower

4,255.56

0.9

17Canon Imaging Systems Inc.

Niigata Ekinan Center Bldg.

4,078.97

0.9

18

Kajima Corporation

Omiya Prime East

4,005.05

0.9

19Mitsubishi Electric Information
Systems Corporation

MS Shibaura Bldg.

3,922.74

0.8

3,665.05

0.8

20

Nomura Facilities, Inc.

JPR Naha Bldg.
Tokyo Tatemono Yokohama Bldg.

(Note) Tenant ratio by industry = Leased space of each tenant by industry / sum total of leased office space(Note) For co-owned buildings, etc., the leased space in accordance with JPR’s ownership interest is indicated.

31

Contracting Status of Tenants by Property (28th Period)

4. Appendix(㎡)

Office (Central
Tokyo)
Office (Greater
Tokyo)
Office (Other
Cities)RetailOccupied
Floor Space

Total

VacatedFloor Space

9,215

5,148

4,067

891

1,324

-432

403

841

-438

359

326

32

10,870

7,641

3,228

Greater Tokyo

Central TokyoNet Floor
Space

Other Cities

Net Increase / Decreaseof Floor Space

Kanematsu Bldg.

-821

MS Shibaura Bldg.

1,960

Gotanda First Bldg.

2,990

JPR Ichigaya Bldg.

510

Oval Court Ohsaki Mark West-

Shinjuku Square Tower

620

BYGS Shinjuku Bldg.

250

Shinjuku Center Bldg.

-475

Shinagawa Canal Bldg.

-566

Tokyo Tatemono Kyobashi Bldg.

388

JPR Sendagaya Bldg.

-817

Science Plaza - Yonbancho Plaza27

JPR Jingumae 432

32

Occupied Floor Space

Vacated Floor Space
-1,222

401
0
955
1,376

-1,376
0
-664

188

-566

0
0

-817

388
0

-56

84

-242

66
-317

Shinyokohama 2nd Center Bldg.

-311

-311

Kawaguchi Center Bldg.

132

Tachikawa Business Center Bldg.

-331

Yume-ooka Office Tower

329

Kawasaki Dice Bldg.

-

JPR Naha Bldg.

81

Sompo Japan Wakayama Bldg.

0
-

620
250

0

-317

-520

2,990

-444

JPR Yokohama Nihon Odori Bldg.

Tenjin 121 Bldg.

1,960

0

JPR Chiba Bldg.

Yakuin Business Garden

(㎡)

275
0

66
0

0

132

-432

100
592

-262
-83

83
0

81

-80

81

-241
-520

241
0

(Note) The above graph excludes properties at which there were no changes in tenants during Dec.’ 16, but includes changes in tenants from the amendment of lease contracts, etc.

32

NOI Yield by Property (28th Period)

4. Appendix

Entire Portfolio

4.6%

Office4.4%

Retail5.2%

OfficeRetailArea average

(%)

-5
-5.5

0

5

10

1.9

Kanematsu Bldg.

3.4
3.1
6.1

Oval Court Ohsaki Mark West

3.5

Shinjuku Square Tower

6.4
6.8

Omiya Prime East

9.9
7.1
4.5
5.0
4.8

Kawasaki Dice Bldg.

3.4

5.8

Average of Greater Tokyo

8.8

6.9

JPR Hakata Bldg.

6.1

JPR Nihonbashi-horidome Bldg.

4.6

Tokyo Tatemono Honmachi Bldg.

5.0

Tokyo Tatemono Kyobashi Bldg.

7.5

Niigata Ekinan Center Bldg.

4.2

7.3

JPR Naha Bldg.

2.3

8.0

Sompo Japan Sendai Bldg.

4.3

Ginza Sanwa Bldg.

3.7

Otemachi Tower (Land with Leasehold Interest)

5.7

Science Plaza - Yonbancho Plaza

5.6

Shibadaimon Center Bldg.

4.7

JPR Shibuya Tower Records Bldg.

2.1
2.9
3.4
3.1

3.6

Other Cities

Central Tokyo

1.3

JPR Harajuku Bldg.

Average of Central Tokyo

5.1

Olinas Tower
Tokyo Tatemono Yokohama Bldg.

Musashiurawa Shopping Square

Rokubancho Bldg.

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

4.5

JPR Musashikosugi Bldg.

2.9

Shinagawa Canal Bldg.

JPR Jingumae 432

6.0

Rise Arena Bldg.
Yume-ooka Office Tower

Cupo-la Main Bldg.

6.4

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

5.8

Tachikawa Business Center Bldg.

Tanashi ASTA

4.7

BYGS Shinjuku Bldg.

Shinjuku Sanchome East Bldg.

Greater Tokyo-5.2

JPR Ichigaya Bldg.

7.3

JPR Ueno East Bldg.

4.3

Fukuoka Bldg.

6.1

Kawaguchi Center Bldg.

3.0

MS Shibaura Bldg.

8.3

Shinyokohama 2nd Center Bldg.

5.9

JPR Crest Takebashi Bldg.

JPR Daikanyama

6.0
5.5

JPR Yokohama Nihon Odori Bldg.

5.3

Shin-Kojimachi Bldg.

JPR Sendagaya Bldg.

10

4.6

Arca East

JPR Ningyo-cho Bldg.

Minami Azabu Bldg.

(%)

5

JPR Chiba Bldg.

-0.8

Kanematsu Bldg. Annex

Gotanda First Bldg.

08.7

Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

4.3
6.3

JPR Dojima Bldg.

6.2

JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.

3.9
5.7

Yakuin Business Garden

5.1

JPR Umeda Loft Bldg.
Benetton Shinsaibashi Bldg.

4.1
5.7

Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

4.2

5.5

33

Appraisal Value by Property (28th Period)

4. Appendix（million yen, %）Property nameAcquisitionPrice

End of 27th Period

Book Valueat End of
28th Period

End of 28th Period

ChangeAppraisal
Value

Property nameAcquisitionPrice

End of 27th Period

3.9

200

-0.1

Tachikawa Business Center Bldg.

3,188

Appraisal
Value
3,120

2,430

4.3

190

-0.1

Rise Arena Bldg.

5,831

2,004

2,510

4.4

120

-0.2

Yume-ooka Office Tower

2,492

3,060

4.2

50

-0.1

Olinas Tower

4.3

3,316

3,040

4.2

130

-0.1

Tokyo Tatemono Yokohama Bldg.

11,300

4.6

11,032

11,400

4.5

100

-0.1

Omiya Prime East

2,170

4.6

3,034

2,470

4.3

300

-0.3

Tanashi ASTA

2,920

2,940

4.2

3,001

2,950

4.1

10

-0.1

JPR Ichigaya Bldg.

5,100

4,780

4.2

5,250

4,890

4.1

110

-0.1

Oval Court Ohsaki Mark West

3,500

4,540

4.4

2,935

4,600

4.4

60

0

Shinjuku Square Tower

14,18012,1004.3

12,81812,359

4.2

259

-0.1

BYGS Shinjuku Bldg.

15,121

14,5004.2

15,523

15,100

4.1

600

-0.1

710

828

5.1

604

841

5.0

13

Shinjuku Center Bldg.

21,00013,5003.9

22,226

13,8003.8

Minami Azabu Bldg.

3,760

2,540

4.7

3,882

2,560

4.6

Shinagawa Canal Bldg.

1,870

1,770

4.5

1,763

1,820

Rokubancho Bldg.

2,800

3,230

6.8

2,856

3,250

JPR Harajuku Bldg.

8,400

7,350

4.3

8,726

Tokyo Tatemono Kyobashi Bldg.

5,250

5,760

4.3

5,344

JPR Nihonbashi-horidome Bldg.

5,100

6,140

4.7

JPR Sendagaya Bldg.

15,05011,000Ginza Sanwa Bldg.

3,400

16,276

AppraisalValue
12,4004.0

14,724

AppraisalValue
12,600Kanematsu Bldg. Annex

2,874

2,240

4.4

2,408

JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

2,100

2,390

4.6

2,420

3,010

4.3

JPR Crest Takebashi Bldg.

4,000

2,910

MS Shibaura Bldg.

11,200Gotanda First Bldg.

2,920

Fukuoka Bldg.

Kanematsu Bldg.

Across Shinkawa Bldg. Annex

Otemachi Tower(land with land leasehold)

Yield

Yield

Yield

Book Valueat End of
28th Period

End of 28th Period

5.1

2,916

Appraisal
Value
3,190

7,350

4.5

5,394

Yield

ChangeAppraisal
Value

Yield

Yield

5

70

-0.1

7,490

4.4

140

-0.1
-0.1

6,510

5,740

5.0

5,578

5,830

4.9

90

31,30034,5004.2

28,34834,900

4.2

400

0

7,000

7,530

5.0

6,894

7,820

4.8

290

-0.2
-0.2

6,090

6,850

5.2

6,036

7,130

5

280

10,20013,1005.4

7,479

13,1005.4

00

Cupo-la Main Bldg.

2,100

2,630

5.6

1,784

2,680

5.5

50

-0.1

JPR Musashikosugi Bldg.

7,260

5,340

5.2

7,109

5,440

5.1

100

-0.1

Musashiurawa Shopping Square

4,335

4,090

5.3

3,844

4,170

5.2

80

-0.1

15,08015,100

4.4

13,867

15,1004.4

00Greater Tokyo

122,891

129,180-

109,954

131,250

-

2,070

-

-0.1

Niigata Ekinan Center Bldg.

2,140

2,330

6.3

1,692

2,360

6.2

30

-0.1

300

-0.1

Tokyo Tatemono Honmachi Bldg.

4,150

3,280

5.3

4,107

3,280

5.2

0

-0.1

20

-0.1

JPR Hakata Bldg.

2,900

2,750

5.5

3,031

2,870

5.3

120

-0.2

4.4

50

-0.1

JPR Naha Bldg.

1,560

1,370

6.4

1,355

1,420

6.1

50

-0.3

6.8

20

0

Sompo Japan Sendai Bldg.

3,150

3,470

5.8

2,201

3,600

5.6

130

-0.2

7,830

4.2

480

-0.1

Sompo Japan Wakayama Bldg.

1,670

1,640

7.0

1,387

1,680

6.9

40

-0.1

5,900

4.2

140

-0.1

Tenjin 121 Bldg.

2,810

2,290

5.2

2,144

2,450

5

160

-0.2

4,891

6,260

4.6

120

-0.1

JPR Dojima Bldg.

2,140

2,280

5.1

2,147

2,370

4.9

90

-0.2

4.2

15,02811,0004.2

00

JPR Hakata-chuo Bldg.

1,920

1,700

5.3

1,823

1,730

5.2

30

-0.1

3,450

3.8

3,629

3,550

3.7

100

-0.1

JPR Nagoya Fushimi Bldg.

4,137

2,920

5.9

3,987

2,630

5.7

-290

-0.2
-0.1

Kawasaki Dice Bldg.

36,00042,3003.2

38,38843,700

3.1

1,400

-0.1

Yakuin Business Garden

10,996

13,0004.8

10,85913,2004.7

200

Science Plaza – Yonbancho Plaza

2,660

3,000

4.4

2,698

3,040

4.3

40

-0.1

JPR Umeda Loft Bldg.

13,00013,700

4.6

12,55414,000

4.5

300

-0.1

Shibadaimon Center Bldg.

4,220

4,970

4.3

4,238

5,280

4.1

310

-0.2

Benetton Shinsaibashi Bldg.

5,430

4,390

4.7

5,091

3,960

4.3

-430

-0.4

12,00013,6003.9

11,546

13,900

3.8

300

-0.1

Housing Design Center Kobe

7,220

6,660

6.1

6,375

6,780

6

120

-0.1

JPR Daikanyama

2,160

1,560

3.9

2,183

1,600

3.8

40

-0.1

JPR Chayamachi Bldg.

6,000

5,470

4.3

5,958

5,750

4.1

280

-0.2

JPR Jingumae 432

4,275

3,640

3.6

4,312

3,720

3.5

80

-0.1

Other Cities

69,223

67,250-64,71868,080-830-

Shinjuku Sanchome East Bldg.

2,740

2,690

3.9

2,662

2,760

3.8

70

-0.1
Total

409,520

401,948-

391,602410,540

-

8,592

-

786

921

4.2

805

940

4.2

19

-

JPR Shibuya Tower Records Bldg.

Yurakucho Ekimae Bldg.

3,400

2,910

3.7

3,340

2,990

3.6

80

-0.1

Central Tokyo

217,406

205,518-

216,867

211,210

-

5,692

-

Arca East

5,880

6,220

4.4

4,393

6,320

4.3

100

-0.1

Property Acquired in the 28th Period

JPR Chiba Bldg.

2,350

1,700

5.8

2,304

1,750

5.7

50

-0.1

Shinjuku Square Tower（additional acquisition)

JPR Yokohama Nihon Odori Bldg.

2,927

2,390

5.4

2,545

2,430

5.3

40

-0.1

※The appraisal value at the end of the 27th period indicates the value upon acquiring the property (as of Oct. 1, 2015).

Shinyokohama 2nd Center Bldg.

1,490

1,640

5.7

1,448

1,710

5.5

70

-0.2

Kawaguchi Center Bldg.

8,100

7,530

5.6

7,004

7,680

5.5

150

-0.1

JPR Ueno East Bldg.

3,250

4,350

4.6

3,003

4,510

4.4

160

-0.2

(Note) The yield is the capitalization rate based on the Direct Capitalization Method.

Difference between Appraisal Value and Book
Value at the end of Dec. 2015

19,13434

Status of Unitholders (28th Period)

4. Appendix

n Status of Units by Investor TypeEnd of 27th Period

Individuals
Financial institutions
Major banks withnational networks
Regional banks
Trust banks
Life insurancecompanies
Nonlife insurancecompanies
Credit unions(Shinkin banks)
OthersOther domestic companies
Foreign investors
Securities companies

End of 28th Period

Increase/decrease

Major banks withnational networks

186,835

21.4

190,655

21.8

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

66,424

7.6

68,416

7.8

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

56,723

6.5

60,501

6.9

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

29,115

3.3

32,812

3.8

Share (%)

-10,867-1.2

514,71359.0

526,44560.3

11,732

1.3

1,373

0.2

592

0.1

-781

-0.1

96,111

11.0

93,12010.7-2,991-0.3

346,00739.6

359,970

41.2

13,963

1.6

48,0595.5

49,127

5.6

1068

0.1

Tokyo Tatemono Co., Ltd.

29,3003.4

29,300

3.4

Japan Trustee Services Bank, Ltd. (Trust Account)

2,142

0.2

2,344

0.3

202

0.1

Kawasaki Gakuen

25,0002.9

25,0002.9

14,064

1.6

14,212

1.6

148

0.0

Meiji Yasuda Life Insurance Company

6,957

0.8

7,080

0.8

123

0.0

24,0002.7

24,0002.7

86,2499.9

83,7739.6-2,476-0.3

State Street Bank West Client Treaty 505234

16,816

1.9

18,731

2.1

186,87121.4

197,547

22.6

10,676

1.2

State Street Bank and Trust Company 505223

12,998

1.5

15,174

1.7

33,2303.8

24,165

2.8-9,065-1.0

100873,000

100-

End of 28th Period

Increase/decrease(%)

Share (%)

No. of units

Share (%)

No. of units

Share (%)

14,791

94.3

12,45093.9-2,341

-0.4

179

1.1

173

1.3

-6

0.2

1

0.0

0

0.0

0.4

55

0.4

-1

0.0

Trust banks

15

0.1

14

0.1

-1

0.0

10

0.1

10

0.1

0

-0.0

6

0.0

6

0.0

0

0.0

57

0.4

54

0.4

-3

0.0

34

0.2

33

0.2

-1

0.0

Other domestic companies

344

2.2

270

2.0

-74

-0.2

Foreign investors

353

2.2

354

2.7

1

0.5

22

0.1

17

0.1

-5

0.0

100

13,264100

Total

13,2681.5

14,141

1.6

462,24252.9

478,730

54.8

n Unitholder Ratio (by number of investment units)

No. of units

15,689State Street Bank-west Pension Fund Clients Exempt 505233

-

0.0

Total

Share (%)

No. of units

4.7

1

Securities companies

No. of units

Share (%)

41,07056

OthersShare (%)

No. of units

5.9

Regional banks
Life insurancecompanies
Nonlife insurancecompanies
Credit unions(Shinkin banks)

No. of units

Share (%)

End of 27th Period

Financial institutions

End of 28th Period

51,937n Composition of Unitholders by Investor Type

Individuals

End of 27th Period

Top 10 Principle Unitholders

No. of units

873,000

Total

n Top 10 Principle Unitholders-2,425-

Foreign Investors

Other Domestic Companies

Financial Institutions

Individuals

100

75

23.4

25.9

25.3

11.3

10.3

9.9

57.6

57.4

58.6

23.0

21.9

10.0

10.2

61.8

63.1

25.1

10.1

21.4

22.6

9.9

9.6

62.8

63.1

50
60.3

25

0

7.7

6.5

6.2

5.1

4.8

4.5

5.9

4.7

21st

22nd

23rd

24th

25th

26th

27th

28th

35

Initiatives on Reduction of Energy Costs andEnvironmental Friendliness

4. Appendix

JPR has continuously conducted reduction of energy cost and environmental-friendly management
operations, and has received certain recognition from external organizations.
n Acquisition of DBJ Green Building Certification

Obtained the DBJ Green Building Certification, a system by Development Bank ofJapan Inc. (DBJ) to certify real estate properties evincing high environmental andsocial awareness for 14 properties
Properties withexceptionally highenvironmental & social
awarenessn Result in Reduction of energy Cost
Renovation of lighting equipment in thecommon area of Tokyo Tatemono Bldg.
Replaced lighting fixtures in the common area on
the 1F and B1 with LED lamps

Properties withexcellent environmental& social awarenessPower consumption reduction rate

▲62%

Renovation of lighting fixtures and air
conditioning units at Gotanda First
Bldg.
Olinas Tower

JPR
Shinagawa Rise Arena
Sendagaya
Bldg.
Canal Bldg.
Bldg.

Yakuin Business
GardenProperties with highenvironmental& social awareness

YumeOmiyaooka-OfficePrime East
Tower

Properties withsatisfactory environmental& social awareness

Renewed air conditioning units and installed LED
lamps in the leased space (owned by JPR)
Power consumption reduction rate

▲29%

Renovation of restaurant floor on the 6Fof Kawasaki Dice Bldg.
Renewed internal fittings and lighting fixtures in thecommon area of the restaurant floor (6F)
Achieved beautification and higher energy efficiency▲20%Power consumption reduction rate
JPR Ueno
East Bldg.

BYGS
Shinjuku
Bldg.

JPR Naha
Bldg.

JPR
Nihonbashihoridome
Bldg.

Kanematsu
Bldg.

Oval Court
OhsakiMark Westn Designation of Green Star , the Highest Ranking, in the GRESB Survey
In the survey conducted in 2015, JPR
was designated as Green Star,
marking the second consecutive year ofrecognition with the highest ranking inthe survey. GRESB also selected JPR as
Sector Leader (the first rank) in the
Diversified (Retail/Office) sector in Asia.
GRESB is a benchmark system for evaluating sustainability performance in the real estate sector,
established in 2009 primarily by major European pension fund groups. More than 175 companies
including approximately 60 pension funds and other institutional investors as well as real estatecompanies use GRESB in selecting investment objects, etc. A total of 707 companies worldwide
comprising real estate companies, REITs and funds participated In the 2015 survey.

n Initiatives on New Power Providers (Power Producer and Supplier)Starting in 2011, JPR switched contracts forsome of its owned properties from theGeneral Electricity Utility (such as Tokyo
Electric Power) to the Specified-Scale
Electricity Utility (PPS: Power Producer and
Supplier) to reduce power charges• Properties for which contracts werechanged23 properties(excluding some co-owned properties)• Electlicity Bill

558 million yen/year• Reduction Rate

▲6.0%

(Actual 2014)(Before 2010)

ElectricPower
Company

RetailJPR(Since 2011)
Sequentially
Switching

JPR Crest
Takebashi
Bldg.

New
power
providers(PPS)

RetailJPR

Electric Power
Company36

4. Appendix

Overview of Asset Manager

n Governance Systemn Remuneration System of Asset Manager

p Highly independent list of Directors
Not only the supervising officers but also the executive officer of JPR (investment
corporation) does not concurrently serve as directors of the Asset Manager (TRIM), so thatthe independence of JPR has been strengthened.

p Various shareholding structure and strengthened independence•The diversified shareholding structure of the sponsors comprising five companies
contributes to securing the independence of TRIM.
•TRIM President and CEO has assumed office after having his employment transferred to
TRIM, instead of being seconded from the sponsor company he belonged to.
•The Compliance Office general manager in charge of internal control is not a person
seconded from any of the sponsors.

p Decision Making Based on Stringent Processes

Material transactions to be conducted with the sponsors, etc. are screened and verified interms of their validity and rationality by the Compliance Committee, in which an outside
attorney participates as a special member. The Committee employs unanimous vote, notmajority vote, for approvals in principle.

Decision-making Process(for property acquisitions)

Review, screening

Decision on
acquisition policy

Due diligence
Prior review/
approval oftransaction withrelated party
Final decision on
acquisition
Decision making on
acquisition overcertain amountCompliance Subcommittee
Investment Subcommittee
Due Diligence Subcommittee

Review to ensure that decision procedures at Investment
Subcommittee are in compliance with laws, regulations,
JPR’s Articles of Incorporation, internal policies of AssetManager
Decide on acquisition policy after reviewing
disclosed material from seller, etc.

TRIM’s Board of
Directors

Item

Decide on acquisition upon review of due diligencereport and result of negotiations with seller anddetermine whether compliant with policy andappropriateness of acquisition priceCalculation of Compensation

Results ofRemuneration(28th Period)

Share

Fixed fee

JPY 12.5 million per month

75 mn yen

14.8%

Incentive Fee 1

2% of JPR’s total revenue（at least 80 billion yen: 1.5％）

251 mn yen

49.7%

Incentive Fee 2

3% of JPR’s income before income
taxes

177 mn yen

35.1%

Incentive Fee 3

0.25% of the acquisition priceupon new acquisition

1 mn yen

0.4%

n Asset Manager
Name

Tokyo Realty Investment Management, Inc.

Capitalization¥350 million

Business
description

Asset management for investment corporation

Review legal compliance, property review,
environmental risk, rights and engineering report; if
there are problems, then review solutions andimprovement plans

Compliance Committee
JPR’s Board Directors
Investment Subcommittee

The Asset Manager receives an asset management fee which consists of a
fixed fee and incentive fees.

Name

Shareholder

Number of
units

Share

Tokyo Tatemono Co., Ltd.

2,800

40%

Taisei Corporation

1,400

20%

Yasuda Real Estate C., Ltd.

1,400

20%

Sompo Japan Nipponkoa Insurance
Inc.

700

10%

Meiji Yasuda Life Insurance Company

700

10%

Total

7,000

100%

37

Trend of Office Property Leasing Market

4. Appendix

Vacancy rate is anticipated to continue dropping, with new demand remaining strong and loss of buildings
tending to increase in volume
n Change in Vacancy Rate and Asking Rent (Tokyo CBDs)
Vacancy Rate and Asking Rent
Vacancy Rate (left axis)
Asking Rent (right axis)

(%)

10

(thousand yen/ tsubo)25

n Forecast for Changes in Supply and Demand Trend and
Vacancy Rate (Tokyo CBD)

Simulated the future outlook of the vacancy rate based on such assumptions on the newly supplied
areas, demanded areas and lost areas
Model A: if new demand is created at mostly the same level as immediately before
Model B: if new demand is limited (to approx. 70%)

Vacancy Rate

4.0%

(As of Dec.2015)

520
Rent Increase
Rent
+

400

4.4%

15

Variation Rates of Vacant Space and New Asking Rent

40
30

Vacancy Area (right axis)
Asking Rent year on year (left axis)
Rents had soaredsince August 2005
when vacant spacefell below 300,000
tsubos20
1080
Vacant space fell
below 300,000
tsubos in December
2015 for the firsttime in approx. 7
years

70

50

20

-30

Vacancy rate (actual result; right axis)

Vacancy rate (Model A; right axis)

Vacancy rate (Model B; right axis)

2012

8.7

2013

2014

2015

2016

2017

2018

(year)

2019

(%)

10

Forecast

Model B

7.3
5.5

5

Model A

0

Dec.’ 152900 thousand tsubo

-5

0

-10

-100

10
0

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 (year)(Note) Prepared by TRIM based on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co.,
Ltd

100

40

-10
Oct.’ 082880 thousand tsubo

New demand (Model B; right axis)

Assumption loss area (left axis)

60

30Aug.’ 05
2940 thousand tsubo

New demand (Model A; left axis)(10 thousand tsubo)0-20

New demand (actual result; left axis)

4.0
200

(year-on-year comparison)
50

300'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 (year)

(%)

2011
9.0

(Most recent a year)

0(thousandtsubo)New supply (left axis)-200

As demolished space have been on an
increasing trend since 2012, a certain
volume of losses are anticipated totake place in 2016 and thereafter as
well.

(Note) Actual results through 2015 are based on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co., Ltd., and new
supply in 2016 and thereafter has been prepared based on surveys and simulations conducted by TRIM.

-15

-20

38

Trend of For-sale Real Estate Market

4. Appendix

Cap rates remain on a downward trend, falling below the level in 2008
n Changes in Acquisition Cap Rates of Office Properties inTokyo (J-REITs)(%)

n Changes in Appraisal Cap Rates of Office Buildings in the 5Central Wards of Tokyo by Size (J-REITs)
Medium and small-sized(%)

Acquisition cap rate

Large

Very large

6

7

6

5

5

4

4
0

0
3
'06

'07

'08

'08

'09

'10

'11

'12

(Note) The indicated cap rates are for the office properties located in 23 Wards of Tokyo and acquired by J-REITs,
and have been prepared by TRIM based on the press releases by respective J-REITs.

'13

'14

'15

1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd
'06

'06

'07

'07

'08

'08

'09

'09

'10

'10

'11

'11

'12

'12

'13

'13

'14

'14

（Note） [Source] Urban Research Institute Corporation [Think Tank of Mizuho Trust and Banking Corporation ReiTREDAClassification of buildings by size is made as follows: Very large – floor area of standard floor at 200 tsubos or more;
Large – same, at 100 tsubos or more; Medium to Small – same, less than 100 tsubos.

39

Portfolio Map

4. Appendix

Property Diversification（as of Dec. 2015 based on acquisition price）
Investment ratioin Tokyo area

83.1%

53.2%

Other cities

62

Central Tokyo

15 properties 16.9%
410.3
69.2 billion yen
billion yen
properties

30properties

218.1billion yen
Greater Tokyo

30.0%

c

17 properties
122.8 billion yen

Other Cities

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.

JPR Hakata Bldg.

C-14

Tenjin 121 Bldg.

C-18

JPR Hakata-chuo Bldg.

Sendai

Kobe

NagoyaC-12
C-1

Niigata

Yakuin Business Garden Osaka
Fukuoka

A-1

Kanematsu Bldg.

A-16

Shinagawa Canal Bldg.

A-2

Kanematsu Bldg. Annex

A-17

Rokubancho Bldg.

A-3

JPR Ningyo-cho Bldg.

A-18

JPR Harajuku Bldg.

A-4

Shin-Kojimachi Bldg.

A-19

Tokyo Tatemono Kyobashi Bldg.

A-5

JPR Crest Takebashi Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-6

MS Shibaura Bldg.

A-21

JPR Sendagaya Bldg.

A-7

Gotanda First Bldg.

A-22

Ginza Sanwa Bldg.

A-8

Fukuoka Bldg.

A-23

Otemachi Tower (land with land leasehold)

A-9

JPR Ichigaya Bldg.

A-24

Science Plaza・Yonbancho Plaza

A-10

Oval Court Ohsaki Mark West

A-25

Shibadaimon Center Bldg.

A-11

Shinjuku Square Tower

A-1

JPR Shibuya Tower Records Bldg.

A-12

BYGS Shinjuku Bldg.

A-2

JPR Daikanyama

A-13

Across Shinkawa Bldg. Annex

A-3

JPR Jingumae 432

A-14

Shinjuku Center Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-15

B

C-7

C-20

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

A

C-19

Sompo Japan Sendai Bldg.
Niigata Ekinan Center Bldg.

JPR Nagoya Fushimi Bldg.

A-5

Shinjuku Ward
Chiyoda Ward

Shinjuku
A-12

A-14

Ichigaya

A-24

A- 4

A-5

A-20

A-9
A-17

A-3
A-4
A-23

A-21

A-13
A-8

Shibuya Ward

A-1
A-2

Harajuku
A-3

A-19
A-22

A-18

Minato Ward

A-1

A-25

Shibuya

Chuo Ward
A-2
Tamachi
A-15

A-6
Gotanda
A-10
A-16

A-7

Shinagawa Ward

Yurakucho Ekimae Bldg.(Yurakucho Itocia)

Ohsaki

OimachiGreater Tokyo All other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures
B-1

Arca East

B-1

Tanashi ASTA

B-2

JPR Chiba Bldg.

B-3

Cupo-la Main Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-4

JPR Musashikosugi Bldg.
Musashiurawa Shopping
SquareKawasaki Dice Bldg.

B- 5

Shinyokohama 2nd Center Bldg.

B-5

B-6

Kawaguchi Center Bldg.

B-6

B-7

JPR Ueno East Bldg.

B- 8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower
Tokyo Tatemono
Yokohama Bldg.
Omiya Prime East

B-12
B-13

Wakayama

Minami Azabu Bldg.

A-11

B-13

B-5

B-6
B-3

B-1
B-9

B-8

B-7
B-11
B-1

B-2

B-4

B-5

B-6

B-12
B-3
B-10

Okinawa

C-9
C-4

Housing Design Center Kobe

C-13

JPR Naha Bldg.

Sompo Japan Wakayama Bldg.

40

4. Appendix

Portfolio List（Central Tokyo）

A-1 Kanematsu Bldg.

A-2 Kanematsu Bldg. Annex

A-3 JPR Ningyo-cho Bldg.

A-4 Shin-Kojimachi Bldg.

① Chuo-ku① Chuo-ku① Chuo-ku① Chiyoda-ku② S・RC・SRC B2/13F② SRC B1/8F② SRC・RC B1/8F② SRC B1/9F③ Feb. 1993

③ Feb. 1993

③ Dec. 1989

③ Oct. 1984

④ 14,995㎡④ 4,351㎡④ 4,117㎡④ 5,152㎡⑤ 11,906㎡⑤ 3,455㎡⑤ 4,117㎡⑤ 3,258㎡⑥ 79.4%⑥ 79.4%⑥ 100.0%⑥ 77.2%(87.4%)⑦ Dec. 2001

⑦ Dec. 2001

⑦ Nov. 2001

⑦ Nov. 2001 etc.

⑧ 16,276 mn yen⑧ 2,874 mn yen⑧ 2,100 mn yen⑧ 2,420 mn yen

A-5 JPR Crest Takebashi Bldg.

A-6 MS Shibaura Bldg.

A-7 Gotanda First Bldg.

A-8 Fukuoka Bldg.

① Chiyoda-ku① Minato-ku① Shinagawa-ku① Chuo-ku② SRC B1/9F② SRC・RC・S B2/13F② SRC・RC B2/11F② SRC B2/10F③ Sep. 1999

③ Feb. 1988

③ Jul. 1989

③ May. 1990

④ 4,790㎡④ 31,020㎡④ 10,553㎡④ 11,627㎡⑤ 4,790㎡⑤ 15,439㎡⑤ 4,035㎡⑤ 2,020㎡⑥ 100.0%⑥ 58.0%⑥ 59.6%⑥ 26.2%⑦ Jun. 2002

⑦ Mar. 2003

⑦ Jul. 2003

⑦ Oct. 2003 etc.

⑧ 4,000 mn yen⑧ 11,200 mn yen⑧ 2,920 mn yen⑧ 2,920 mn yen

A-14 Shinjuku Center Bldg.

A-9 JPR Ichigaya Bldg.

A-10 Oval Court Ohsaki Mark West

A-11 Shinjuku Square Tower②−③ Apr. 2014
11,034㎡④(ground area)

11,034㎡(ground area)⑥ 100%⑤⑦ Mar. 2012
⑧ 36,000 mn yen

A-12 BYGS Shinjuku Bldg.

① Shinagawa-ku① Shinjuku-ku① Shinjuku-ku② SRC B1/9F② S・SRC B2/17F② S・RC・SRC B4/30F② SRC B2/14F③ Mar. 1989

③ Jun. 2001

③ Oct. 1994

③ Sep. 1985

④ 5,889㎡④ 28,576㎡④ 78,796㎡④ 25,733㎡⑤ 5,889㎡⑤ 4,025㎡⑤ 18,933㎡⑤ 25,733㎡⑥ 100.0%⑥ 23.9%⑥ 67.4%⑥ 100.0%⑦ May. 2004

⑦ Jun. 2004

⑦ Jul. 2004 etc.

⑦ Nov. 2004 etc.

⑧ 5,100 mn yen⑧ 3,500 mn yen⑧ 14,996 mn yen⑧ 15,121 mn yen

A-15 Minami Azabu Bldg.

A-16 Shinagawa Canal Bldg.

① Chuo-ku① Minato-ku① Minato-ku② S・SRC B2/10F② S 9F② S B1/8F③ Jun. 1994

③ Jun. 1992

③ Jul. 2008

④ 5,535㎡④ 4,570㎡④ 5,216㎡⑤ 1,233㎡⑤ 4,570㎡⑤ 1,677㎡⑥ 35.5%⑥ 100.0%⑥ 45.6%② SRC・RC・S B5/54F ⑥ 8.6%

⑦ Nov. 2004

⑦ Jul. 2008

⑦ Dec. 2008

③ Oct. 1979

⑦ Mar. 2008

⑧ 710 mn yen⑧ 3,760 mn yen⑧ 1,870 mn yen④ 176,607㎡⑧ 21,000 mn yen⑤ 8,172㎡① Chiyoda-ku① Chiyoda-ku

A-13 Across Shinkawa Bldg. Annex① Shinjuku-ku

A-23 Otemachi Tower (land with land leasehold)

A-17 Rokubancho Bldg.
① Chiyoda-ku② SRC B3/7F③ Oct. 1991
④ 4,205㎡⑤ 4,205㎡⑥ 100.0%⑦ Dec. 2009
⑧ 2,800 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

41

4. Appendix
A-18 JPR Harajuku Bldg.

Portfolio List（Central Tokyo）
A-19 Tokyo Tatemono Kyobashi Bldg.

⑤ 6,466㎡② SRC B1/9F⑥ 100.0%③ Mar. 1989

⑦ Dec. 2009

④ 6,466㎡⑧ 8,400 mn yen

A-5 Yurakucho Ekimae Bldg. (Yurakucho Itocia)① Chiyoda-ku⑤ 1,087㎡② S-SRC B4/20F⑥ 1.9% (2.1%)③ Oct. 2007

⑦ Aug. 2008

④ 71,957㎡⑧ 3,400 mn yen

A-21 JPR Sendagaya Bldg.

A-22 Ginza Sanwa Bldg.

① Chuo-ku① Shibuya-ku① Chuo-ku② SRC B1/10F② SRC B1/9F② S 8F② SRC B2/9F③ Jan. 1981

③ Jun. 2002

③ May. 2009

③ Oct. 1982

④ 4,420㎡④ 7,191㎡④ 7,683㎡④ 8,851㎡⑤ 4,420㎡⑤ 7,191㎡⑤ 7,683㎡⑤ 2,043㎡⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 26.6%⑦ Feb. 2010

⑦ Mar. 2010

⑦ May. 2010

⑦ Aug. 2011

⑧ 5,250 mn yen⑧ 5,100 mn yen⑧ 15,050 mn yen⑧ 3,400 mn yen

A-24 Science Plaza – Yonbancho Plaza① Shibuya-ku

A-20 JPR Nihonbashi-horidome Bldg.

① Chuo-ku

A-25 Shibadaimon Center Bldg.

① Chiyoda-ku① Minato-ku② S・SRC・RC B2/12F② S・SRC B1/10F③ Feb. 1995

③ Jul. 1993

④ 24,560㎡④ 11,419㎡⑤ 3,213㎡⑤ 5,285㎡⑥ 22.4%⑥ 65.4%⑦ Dec. 2013

⑦ Dec. 2013 etc.

⑧ 2,660 mn yen⑧ 4,220 mn yen

A-1 JPR Shibuya Tower Records Bldg..

A-2 JPR Daikanyama

A-4 Shinjuku Sanchome East Bldg.

A-3 JPR Jingumae 432① Shibuya-ku① Shibuya-ku① Shibuya-ku① Shinjuku-ku② SRC・S B3/8F② RC B2/2F② S・SRC B1/7F② S・SRC・RC B3/14F③ Feb. 1992

③ Jul. 2002

③ Feb. 2006

③ Jan. 2007

④ 8,449㎡④ 668㎡④ 1,066㎡④ 24,617㎡⑤ 8,449㎡⑤ 668㎡⑤ 1,066㎡⑤ 2,328㎡⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 12.5%⑦ Jun. 2003

⑦ Oct. 2004

⑦ Mar. 2006

⑦ Mar. 2007 etc.

⑧ 12,000 mn yen⑧ 2,160 mn yen⑧ 4,275 mn yen⑧ 2,740 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

42

4. Appendix

Portfolio List（Greater Tokyo）

B-1 Arca East Bldg.

B-3 JPR Yokohama Nihon Odori Bldg.

B-2 JPR Chiba Bldg.
① Sumida-ku① Chiba, Chiba② S・SRC B3/19F② S・SRC B1/13F③ Mar. 1997

③ Jan. 1991

④ 34,281㎡④ 9,072㎡⑤ 6,911㎡⑤ 9,072㎡⑥ 38.3%⑥ 100.0%⑦ Nov. 2001

⑦ Dec. 2001

⑧ 5,880 mn yen

B-11 Olinas Tower⑧ 2,350 mn yen④ 257,842㎡⑧ 31,300 mn yen

B-1 Tanashi ASTA
② SRC B2/17F③ Feb. 1995
④ 80,675㎡⑤ 20,727㎡⑥ 43.6%（51.3%）⑦ Nov. 2001
⑧ 10,200 mn yen⑤ 7,781㎡⑥ 100.0%⑥ 100.0%⑦ Nov. 2001

⑦ Sep. 2002 etc.

⑧ 2,927 mn yen⑧ 1,490 mn yen

B-9 Rise Arena Bldg.

③ Oct. 1992

③ Dec. 1994

③ Jan. 2007

④ 8,490㎡④ 14,706㎡④ 91,280㎡⑤ 8,490㎡⑤ 4,812㎡⑤ 5,972㎡⑥ 100.0%⑥ 47.9%⑥ 25.2%⑦ Mar. 2004

⑦ Sep. 2005 etc.

⑦ Mar. 2007

⑧ 3,250 mn yen⑧ 3,188 mn yen⑧ 5,831 mn yen

Yokohama,
Kanagawa⑤ 8,772㎡⑥ 100.0%⑦ Dec. 2010
⑧ 7,000 mn yen③ Jan. 2006
④ 48,321㎡⑤ 5,870㎡⑥ 16.7%(19.2%)⑦ Mar. 2006
⑧ 2,100 mn yen

Kawaguchi,
Saitama② S・SRC B2/15F①③ Feb. 1994
④ 28,420㎡⑤ 15,401㎡⑥ 86.5%⑦ Feb. 2004
⑧ 8,100 mn yen①

Yokohama,
Kanagawa② S・SRC・RC B3/27F③ Mar. 1997
④ 185,976㎡⑤ 14,196㎡⑥ 48.8%⑦ Jul. 2007
⑧ 6,510 mn yen

B-13 Omiya Prime East
① Saitama, Saitama② S 9F③ Feb. 2009
④ 9,203㎡⑤ 9,203㎡⑥ 100.0%⑦ Mar. 2013
⑧ 6,090 mn yen

B-4 JPR Musashikosugi Bldg.
Kawaguchi,①
Saitama② S・RC・SRC B2/10F

B-6 Kawaguchi Center Bldg.

B-10 Yume-ooka Office Tower② RC・SRC・S B3/42F

B-3 Cupo-la Main Bldg.
① Nishitokyo, Tokyo

⑤ 9,146㎡② S・SRC B1/12F③ May. 1981

⑦ Jun. 2009

④ 7,781㎡② S・SRC B1/8F④ 8,772㎡③ Feb. 2006

③ Aug. 1991

④ 9,146㎡① Toshima-ku② SRC B1/9F② SRC・RC・S B2/45F ⑥ 23.3%② S・SRC B2/12F③ Oct. 1989

① Tachikawa, Tokyo①⑤ 23,692㎡② SRC B1/11F① Taito-ku

B-12 Tokyo Tatemono Yokohama Bldg.

① Sumida-ku

Yokohama,①
Kanagawa

B-8 Tachikawa Business Center Bldg.

B-7 JPR Ueno East Bldg.

B-5 Shinyokohama 2nd Center

Yokohama,①
Kanagawa

Kawasaki,①
Kanagawa② SRC・RC・S B1/6F③ Mar. 1983
④ 18,394㎡⑤ 18,394㎡⑥ 100.0%⑦ Sep. 2006
⑧ 7,260 mn yen

B-5 Musashiurawa Shopping Square① Saitama, Saitama② S B1/4F③ Oct. 2005
④ 28,930㎡⑤ 14,465㎡⑥ 50.0%⑦ Mar. 2007
⑧ 4,335 mn yen

B-6 Kawasaki Dice Bldg.
Kawasaki,Kanagawa② S・SRC・RC B2/11F①③ Aug. 2003
④ 36,902㎡⑤ 13,925㎡⑥ 46.6%⑦ Apr. 2007
⑧ 15,080 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

43

4. Appendix

Portfolio List（Other Cities）

C-1 Niigata Ekinan Center Bldg.

C-4 Tokyo Tatemono Honmachi Bldg.

C-7 JPR Hakata Bldg.

C-9 JPR Naha Bldg.

① Niigata, Niigata① Osaka, Osaka① Fukuoka, Fukuoka② S・SRC B1/10F② SRC B3/9F② S・RC B1/12F,S1F③ Feb. 1970

③ Mar. 1996

④ 6,715㎡⑤ 6,715㎡⑥ 100.0%⑦ Jun. 2002
⑧ 1,670 mn yen⑦ Nov. 2001

⑧ 4,150 mn yen⑧ 2,140 mn yen③ Jul. 1996

⑥ 100.0%⑦ Nov. 2001

⑦ Nov. 2001

② S 9F⑤ 9,828㎡⑥ 72.0%(71.0%)⑥ 32.9%(58.0%)

Wakayama,①
Wakayama④ 9,828㎡⑤ 7,709㎡⑤ 5,444㎡

C-13 Sompo Japan Wakayama Bldg.

③ Jun. 1985

④ 14,619㎡④ 19,950㎡

C-14 Tenjin 121 Bldg.

⑧ 2,900 mn yen

C-17 JPR Dojima Bldg.
① Osaka, Osaka② S・SRC 13F② SRC B2/9F③ Jul. 2000
⑤ 3,117㎡⑥ 52.2%⑦ Jun. 2002
⑧ 2,810 mn yen② SRC・S 12F③ Oct. 1991
④ 5,780㎡⑤ 5,780㎡⑥ 100.0%⑦ Nov. 2001
⑧ 1,560 mn yen

C-18 JPR Hakata-chuo Bldg.

① Fukuoka, Fukuoka④ 8,690㎡

C-12 Sompo Japan Sendai Bldg.
① Naha, Okinawa③ Oct. 1993
④ 5,696㎡⑤ 5,696㎡⑥ 100.0%⑦ Jan. 2004
⑧ 2,140 mn yen① Fukuoka, Fukuoka② SRC 8F
③ Feb. 1993
④ 3,874㎡⑤ 3,874㎡⑥ 100.0%⑦ Jun. 2004
⑧ 1,920 mn yen① Sendai, Miyagi② SRC B1/12F③ Dec. 1997
④ 10,783㎡⑤ 10,783㎡⑥ 100.0%⑦ Jun. 2002
⑧ 3,150 mn yen

C-19 JPR Nagoya Fushimi Bldg.
① Nagoya, Aichi② SRC B1/9F③ Mar. 1991
④ 10,201㎡⑤ 10,201㎡⑥ 100.0%⑦ Mar. 2005
⑧ 4,137 mn yen

C-20 Yakuin Business Garden

C-1 JPR Umeda Loft Bldg.

② SRC 14F

⑥ 100.0%③ Jan. 2009⑦ Aug. 2012

④ 22,286㎡⑧ 10,996 mn yen

C-5 JPR Chayamachi Bldg.

① Kobe, Hyogo① Osaka, Osaka② SRC B1/8F② S B2/10F② SRC･S B2/11F② S・SRC 9F③ Feb. 2003

③ Jun. 1994

③ Jun. 1994

④ 5,303㎡④ 33,877㎡④ 3,219㎡⑤ 5,303㎡⑤ 33,877㎡⑤ 3,219㎡⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ May. 2005

⑦ Sep. 2005

⑦ Aug. 2006

⑧ 5,430 mn yen⑧ 7,220 mn yen⑧ 6,000 mn yen④ 17,897㎡⑤ 22,286㎡

C-4 Housing Design Center Kobe

① Osaka, Osaka③ Apr. 1990

① Fukuoka, Fukuoka

C-3 Benetton Shinsaibashi Bldg.

① Osaka, Osaka⑤ 17,897㎡⑥ 100.0%⑦ May. 2003 etc.
⑧ 13,000 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

44

4. Appendix

Introduction to the JPR Website
http://www.jpr-reit.co.jp/

Having expanded IR information by adding a variety of contents, JPR provides information in a timely
manner8955
Property Information• [Occupancy Rate]
Occupancy Rate: data for each property (Excel)
updated monthly• [Property Data Library]
Property Data Book, Historical Data by Property
Appraisal Summary• [Portfolio data]
Asset class, Area, Ratio of Properties by Property
Acquisition Channel• [Video Presentation of Major Properties]

Overview of Property・Access Map• [Property Overview]

Basic Information, Management Status, Major
Characteristic• [Access Map]

Search function for routes from the nearest
stations (applicable for mobile phones)• Other than these, latest topics regarding
management status are posted at any time

Digest of Financial Results• [Digest of Financial Results]

Provides movie that summarizes the latest
analyst meeting in a compact manner• [IR Mail Delivery Service]
Distribution of News Release45