STATEMENT ON PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONSON SUSTAINABILITY FACTORS
Product name: Japan Prime Realty Investment Corporation
Legal entity identifier: 353800NJOQJAY1ODEX72
The following is the adverse sustainability impact statement of Japan Prime Realty Investment
Corporation (“JPR”) pursuant to Regulation (EU) 2019/2088 (“SFDR”). We have no employees
in accordance with the prohibition on having employees under the Act on Investment Trusts andInvestment Corporations of Japan and rely on Tokyo Tatemono Realty Investment Management,Inc. (the “Asset Manager”), to manage and operate the properties in our portfolio. JPR and theAsset Manager are hereinafter referred to collectively as “we”, “us” or “our”.
Please note that SFDR requirements, including the scope of their application to issuers outside
the European Economic Area, continue to evolve. We are therefore taking a principles-based
approach to compliance with the SFDR disclosure standards, which are subject to change.
1. Summary
We consider principal adverse impacts of our investment decisions on sustainability factors. The
present statement is our consolidated statement of the principal adverse impacts on sustainability
factors (“PAI”). The statement covers the reference period from January 1, 2023 to December
31, 2023. The statement will be reviewed at least once during every year.
We believe that our sustainability initiatives are essential for our sustainable growth. We
improve long-term returns of investors and contribute to the realization of sustainable society
and urban development by implementing initiatives that address social issues. Under oursustainability policies and framework, we, in collaboration with the Asset Manager, take actions
on climate change, including energy conservation, use of renewable energy, and being resilientin times of disasters.
We use the definition of PAI as described in Recital 20 of SFDR being “those impacts ofinvestment decisions and advice that result in negative effects on sustainability factors”, withsustainability factors referring to environmental, social and employee matters, respect for humanrights, anti‐corruption and anti‐bribery matters as defined in Article 2 (24) of SFDR.
We believe that investment decisions that negatively affect climate or other environment-relatedresources, or have negative implications for society, can have a significant impact to risk andvalue creation for our unitholders. To this end, we consider PAI of our investment decisions
throughout all major steps of the investment decision and property management process
throughout the lifecycle of the properties in our portfolio.
2. Description of principal adverse sustainability impacts
Nearly all types of economic activity have the potential to impact various PAI indicators, both
positively and adversely. We aim to manage the risk connected to PAI from our investment
decisions in several ways, including general screening criteria, due diligence and our ESG

initiatives. Some of the PAI indicators listed below are currently already being monitored andreported. As the availability of data improves, it is our intention that more indicators will beadded.
Table 1
Description of the principal adverse impacts on sustainability factors
We do not invest in investee companies, but invest in real estate. As adverse sustainability indicators 1-16 as
contained in Table 1 of Annex 1 of the SFDR Delegated Regulation pertain to investee companies, these are
not included in this PAI statement, which pertains to real estate investments.
Indicators applicable to investments in real estate assets
Adversesustainability
indicator

MetricImpact in
2023

Impact in
2022

Explanation

Actions taken,
and actions
planned andtargets set for
the next
reference
periodFossilfuels

17.
Exposure
to fossil
fuels
through
real estate
assetsShare ofinvestments inreal estate
assets involvedin theextraction,
storage,transport ormanufacture offossil fuels

N/A

N/A

We do notinvest in realestate assets
involved in theextraction,storage,transport ormanufacture offossil fuels.

N/A

Energyefficiency

18.
Exposure
to energyinefficient
real estate
assetsShare ofinvestments inenergyinefficient realestate assets

As ofDecember 31,2023, 7.6% of
our properties
were not“Eligible
Green Assets”(as defined tothe right)
based onacquisition
price.

As ofDecember 31,2022, 12.0%
of ourproperties
were not“Eligible
Green Assets”(as defined tothe right)
based onacquisition
price.

To track theenvironmental
performance ofour properties,
we rely on
certifications
issued by thirdparty
organizations,such as theDevelopment
Bank of Japan’s(“DBJ”) Green
Building
Certification,
Comprehensive
Assessment
System forBuilt
Environment
Efficiency

We implement
as appropriate
measures toreduce theenvironmental
impact of thereal estate
assetsfollowingacquisition,including by
obtaining
environmental
certifications
such as DBJ orCASBEE.
We also installand renew
energy-efficientfacilities such(“CASBEE”)
certification,and otherequivalentcertifications.
With respect toDBJ
certifications,
we consider aproperty to havesufficientenvironmental
certification if it
received 3 stars
or higher out of
DBJ’s five-starranking system.
With respect toCASBEE, weconsider aproperty to havesufficientenvironmental
certification if it
received B+
Rank or higher
out of theCASBEE
ranking system
featuring Rank
S (excellent),
Rank A (verygood), Rank B+(good), Rank B(slightlyinferior) and
Rank C(inferior). We
have developeda Sustainability
Finance
Framework andreviewed theeligibility
criteria. Under
this framework,
we call our
properties thatmeet the green
eligibility
criteria“Eligible Green
Assets.” Also,
we call ourproperties that

as LED
lighting, reducegreenhouse gas
emissions byreviewing
agreementswith electric
power
companies andincrease use ofrenewableenergy in orderto reduce
environmental
impact caused
by ourproperties.

meet both of“Greenbuildings” ofthe green
eligibility
criteria andsocial eligibility
criteria“EligibleSustainability
Assets.”Table 2
Additional climate and other environment-related indicators
We do not invest in investee companies but in real estate. As additional climate and other environment-related
indicators 1-17 as contained in Table 2 of Annex 1 of the SFDR Delegated Regulation pertain to investee
companies, these are not included in this PAI statement, which pertains to real estate investments.

Adversesustainability
impact

CLIMATE AND OTHER ENVIRONMENT-RELATED INDICATORS
Adverse impact on sustainability factors (qualitative orquantitative)

MetricIndicators applicable to investments in real estate assets
Greenhouse gasemissions

18. GHG emissions
Scope 1 GHG emissions generated by real estate assets were 1,369
t-CO2 (in 2018), 1,331 t-CO2 (in 2019), 1,293 t-CO2 (in 2020),
1,212 t-CO2 (in 2021) and 1,233 t-CO2 (in 2022), 1,440 t-CO2 (in2023).
Scope 2 GHG emissions generated by real estate assets were 14,509
t-CO2 (in 2018), 15,283 t-CO2 (in 2019), 14,929 t-CO2 (in 2020),
14,419 t-CO2 (in 2021) and 12,224 t-CO2 (in 2022), 10,592 (in2023).
Scope 3* GHG emissions generated by real estate assets were
55,624 t-CO2 (in 2018), 58,317 t-CO2 (in 2019), 54,347 t-CO2 (in2020), 53,331 t-CO2 (in 2021) and 47,631 t-CO2 (in 2022), 43,662(in 2023).
(*) Data for category 5 of Scope 3 are collected for the period from
April to March. This data is sufficiently compatible with, and shows
results that do not materially differ from, those that would be
produced using the calendar year-based data noted in the SFDR
Delegated Regulation. For details of the data, please refer to ourwebsite: https://www.jprreit.co.jp/en/sustainability/e_climate_change.html
We have established a target of 46.2% reduction in GHG emissions
in 2030 (compared to the 2019 level) and a target of achieving net

Scope 1 GHG
emissions generated
by real estate assets
Scope 2 GHG
emissions generated
by real estate assets
Scope 3 GHG
emissions generatedby real estate assets
Total GHG
emissions generated
by real estate assets

zero emission in 2050. We have submitted our commitment to theabove targets to SBTi in November 2022 and acquired certificationfrom SBTi in April 2023.
We have entered into agreements with electric power companies
pursuant to which we monitor on an ongoing basis not only
greenhouse gas emissions but also the underlying factors such as thecomposition of our power sources, and take actions to reduce them.
We have also increased use of renewable energy through installationof solar panels. As of December 31, 2023, five of our 67 properties
were equipped with solar panels.

Table 3
Additional indicators for social and employee, respect for human rights, anti-corruption and antibribery matters
JPR has no employees in accordance with the prohibition on having employees under the Act on Investment
Trusts and Investment Corporations of Japan, and relies on the Asset Manager to manage and operate theproperties in our portfolio. Accordingly, additional indicators for social and employee, respect for humanrights, anti-corruption and anti-bribery matters in this PAI statement pertain to the Asset Manager and thetenants of the properties in our portfolio, to the extent available.
SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTIBRIBERY MATTERS
Adversesustainability
impactAdverse impact on sustainability factors (qualitative orquantitative)

MetricIndicators applicable to investments to the Asset Manager or tenantsSocial andemployeematters

5. Lack of grievance/complaints handling mechanism related toemployee matters
Since 2005, we have conducted an annual tenant satisfaction
survey for all tenants and considered ways to improve ourproperties based on the results. The survey conducted in June
2023 targeted 470 companies in 40 properties (59.7% of ourproperties based on the number of properties), and included
questions related to tenant satisfaction with respect to ourmanagement, communication with tenants, security,communication in emergencies and environmental preservation.
In the most recent survey, tenants gave an average of 3.54 out of
4 in terms of their satisfaction level. We use such results toaddress issues discovered, including in cooperation with property
managers and building managers.
Tenants in 40.3% of our properties based on the number ofproperties do not have a grievance/complaints handlingmechanism.

Share of investments ininvestee companies
without any
grievance/complaints
handling mechanism
related to employee
matters

6. Insufficient whistleblower protection
The Asset Manager has established a system to deal withcomplaints of its employees appropriately. All employees of theAsset Manager can request a fair investigation and anonymously
report actions such as violation of compliance through thehotline, internal or external. Through the hotline, the employees
can report various matters such as violation of human rights,corruption, bribery and harassment. Reported matters arecorrected appropriately and prevented from recurrence under thesupervision of the representative director and auditor. The AssetManager also prohibits unfair actions or retaliations towhistleblowers while it seriously considers protection ofwhistleblowers’ privacy.

Share of investments inentities without policies
on the protection ofwhistleblowers

All of the Asset Manager’s employees are provided
whistleblower protection as a matter of policy.

For descriptions of actions which JPR takes and will take with respect to the PAI indicators,
please refer to our ESG website with respect to JPR:
https://www.jpr-reit.co.jp/en/sustainability/index.html
3. Description of policies to identify and prioritize principal adverse sustainability impacts
Subject to data availability, we monitor the selected PAI indicators for the existing properties inour portfolio.
Prior to our investment in a property, we conduct due diligence review of the property, including
ESG due diligence, which includes selected PAI indicators. The due diligence findings related toselected PAI indicators are reported and reviewed prior to the investment decision.
The Asset Manager has established a green finance framework in accordance with the 2018
Green Bond Principles and the 2017 Green Bond Guidelines to conduct sustainable finance.
With respect to the Development Bank of Japan’s (“DBJ”) Green Building Certification, weconsider a property to have sufficient environmental certification if it received 3 stars or higher
out of DBJ’s five-star ranking system. With respect to Comprehensive Assessment System for
Built Environment Efficiency (“CASBEE”) certification, we consider a property to havesufficient environmental certification if it received B+ Rank or higher out of the CASBEE
ranking system featuring Rank S (excellent), Rank A (very good), Rank B+ (good), Rank B(slightly inferior) and Rank C (inferior).
For further information, please refer to our ESG website:
https://www.jpr-reit.co.jp/en/sustainability/index.html

4. Engagement policies
Due diligence and screening
We consider the environment and nature of the soil when investing in properties. We do notconsider investing in properties that do not meet the standards for soil contamination and otherenvironmental contamination in accordance with the Air Pollution Control Act and the Soil
Contamination Countermeasures Act of Japan and other environmental laws and ordinancesfrom our portfolio. However, from time to time we acquire properties not meeting the standards
as long as they are deemed fixable promptly after acquisition. We also invest in properties thathave been constructed, reinforced, or otherwise modified to meet applicable new earthquake
resistance building codes or have been deemed to have seismic capacity equivalent thereto.
At the properties we operate, we set numerical targets and monitor the amount of energy used aswell as the amount of CO2 emissions within the property in order to reduce our environmental
burden.
Engagement
We have standardized environmental provisions, which we refer to as “Green Lease” provisions,in the leases with our tenants. Our Green Lease provisions include clauses requiring our tenants
to collaborate with us in implementing various measures, including for energy savings andimproving the office environment.
We regularly share information with property managers and discuss initiatives on energy-saving
and environmental issues. We also hold workshops for property managers and other business
partners to raise their awareness of sustainability and enhance their readiness.
5. References to international standards
The Asset Manager has adopted the recommendations of the Task Force on Climate-related
Financial Disclosures, which was established by the Financial Stability Board.
We also support the Universal Declaration of Human Rights in the International Bill of HumanRights, international labor standards such as the ILO Declaration on Fundamental Principles andRights at Work, and the UN Guiding Principles on Business and Human Rights.
TRIM became a signatory to the Principles for Responsible Investment (PRI) in May 2019, inagreement with its fundamental thinking. In addition, Tokyo Tatemono has signed the United
Nations Global Compact (UNGC) and Tokyo Tatemono Group is registered as a participatingcompany. TRIM also participates as a member of the Group, as well as participates insubcommittees.
6. Historical comparison
See above.