Security code 8955

Japan Prime Realty Investment Corporation

Presentation Material For the
Fiscal Period Ended June 2022

(Asset Manager) Tokyo Realty Investment Management, Inc.

Table of Contents

1. Summary of Financial Results

4

2. Operational Status and Growth Strategy

8

1. Internal Strategy

12

2. External Strategy

19

3. Financial Strategy

22

4. Sustainability

24

3. Financial Results and Operating Forecasts

30

4. Appendix

38

2

Overview of JPR■ Overview of JPR

Name

Japan Prime Realty Investment
Corporation(abbreviated as JPR)

Securities code 8955
Listing dateJune 14, 2002 (20 years sincelisting)

End of fiscal
periodJune and December

Operational
standard of
portfolio(Targetinvestment
ratio)(Ratio by asset class)
Office 70-90%
Urban Retail etc. 10-30%(Ratio by area)
Tokyo 80-90%
Other cities 10-20%

Tokyo Realty Investment
Asset Manager Management Inc.
(abbreviated as TRIM)

Sponsors(shareholding
ratio)

Tokyo Tatemono Co., Ltd. (75%)
Yasuda Real Estate Co., Ltd. (10%)
Taisei Corporation Co., Ltd. (10%)
Meiji Yasuda Life Insurance
Company (5%)■ Characteristics of JPR(as of the end of June 2022)

1 A track record of stable management for 20 years
Since listing, JPR has steadily expanded its asset size while
enhancing the quality of its portfolio.

portfolio focused on office properties
2 Ain robustTokyo
JPR has established a portfolio that is focused on office properties inTokyo, which feature growth potential, with urban retail properties
and office properties in regional cities to complement profitability.

3 Superiority pipeline of a developer- sponsored REIT
JPR has exerted its superiority of a developer-sponsored REIT toacquire properties having excellent location characteristics centering
on large-scale development projects.

of internal growth through high level
4 Realizationof operation

Asset size

67 properties 492.2 bn. yen

Ratio by asset(Area) Tokyo 84.5%(Asset class) Office 80.6%

Acquisition price and ratio of
properties from sponsor pipelines

370.5 bn. yen 75.3%

Period-average Occupancy Rate

97.8%

JPR has maintained a high portfolio occupancy rate and achieved
upward revisions of rent.

5

Establishment of a financial base that is stable
over the long termWith a credit rating of AA- (Stable), JPR has established a financialbase centering on long-term, fixed-interest rate debts with a focus
on stability.

6 Commitment to sustainability
JPR seeks an improvement in unitholder value and contributes tothe realization of a sustainable society through the proactive
implementation of initiatives that squarely address social issues.

Credit rating

JCR AA (stable)

R&I AA- (stable)
S&P A (stable)
LTV

40.0%

■ Inclusion in MSCI ESG SelectLeaders Index■ 5 Stars, the highest mark,in GRESB Real Estate
Assessment

31. Summary of Financial Results

1. Summary of Financial
Results

Financial Results for the June 2022 Fiscal Period and Operating Forecasts

June 2022
Period Result

Period-on-period
comparison
Increase/
Rate of
Decrease
ChangeCompared with
forecast
Increase/
Rate of
Decrease
Change(million yen)

December 2021
Period Result

Operatingrevenue

18,25318,357

+104

+0.6%

+190

+1.0%

Rental incomereal estate

8,651

9,072

+421

+4.9%

+93

+1.0%

Operating income

8,626

9,343

+716

+8.3%

+96

+1.0%

Ordinary income

7,893

8,607

+714

+9.1%

+78

+0.9%

Net income

7,892

8,607

+714

+9.1%

+78

+0.9%

Distribution perunit*1 (yen)

7,550

7,800

+250

+3.3%

+50

+0.6%

December 2022
June 2023
Period Forecast Period Forecast

18,472

17,029+0.6%(period-on-period)-7.8%(period-on-period)

9,112

9,062

+0.4%
(period-on-period)-0.5%(period-on-period)

9,393

8,138

+0.5%
(period-on-period)-13.4%(period-on-period)

8,579

7,359

-0.3%
(period-on-period)-14.2%(period-on-period)

8,578
-0.3%
(period-on-period)

7,359-14.2%(period-on-period)

7,750

7,600

-0.6%
(period-on-period)-1.9%(period-on-period)*1 Distribution per unit is calculated after adding or subtracting the following retained earning amounts (provision or reversal of reserve for reduction entry) from each period's income.
Dec. ’21 period

Jun. '22 Period

Dec. '22 Period(plan)

Jun. '23 Period(plan)

Provision of reserve
for reduction entry

659

830

850

-

Reversal of reserve
for reduction entry

-

-

-

219

(million yen)5

1. Summary of Financial
Results

Changes in distribution per unit (DPU)/NAV

DPU for the Jun. '22 fiscal period exceeded the initial estimate and reached a record high, due mainly to an increase inrental income.
In the Dec. '22 fiscal period and the Jun. '23 fiscal period, DPU will continue to be maintained at a stable level mainly
through the capitalization of gain on transfer and the utilization of retained earnings.
NAV per unit for the Jun. '22 fiscal period reached a record high, rising for an 19th consecutive fiscal period, due to the
expansion of unrealized gains and other factors.

Distribution per unit (yen)Initial forecast amounts

NAV per unit (yen)Actual amounts

Rising for an
19th consecutive
fiscal period

Maintaining stable DPU growth
Record high

7,380
7,350

'19.6

7,493

7,595
7,590

7,750
7,720

394,302

7,800
7,657

7,550

7,430

Record high7,550 7,750
7,550

7,750
7,600

368,917

371,053

372,725

375,544'19.12'20.6'20.12'21.6

383,368

353,795'19.12'20.6'20.12'21.6'21.12'22.6'22.12'23.6 (period)(Forecast) (Forecast)'19.6'21.12'22.6(period)6

1. Summary of Financial
Results

Fluctuation in Distribution per Unit

DPU held firm mainly due to progress in leasing activities for existing properties and the effect of asset replacement, which
offset the impact of rising energy prices.

Plus item

Minus item

(yen/unit)

Increase in rent and common charge (rent revision etc.)+46
Decrease in rent and common charge (move-in/ move-out)-27
Decrease in cancellation penalty income and income
equivalent to expense for restoration-35
Increase in property and other taxes-45
Decrease in repairs and maintenance expense+81
Decrease in depreciation+130
Rise Arena Bldg.
+56
Grand Front Osaka+289
Tokyo Tatemono Higashi-Shibuya+170Tokyo Tatemono Honmachi-31
JPR Umeda Loft-92

Increase in rent and common charge (rent revision etc.)
Decrease in rent and common charge (move-in/ move-out)
Increase in cancellation penalty income and income
equivalent to expense for restoration
Decrease in repairs and maintenance expense

1,342

DPU

Asset
replacement

7,550

Utilities
expenses（net）

Adjusted
EPU

7,297

138

91

392

Adjusted
EPU

7,400

110 7,800
Expenses

JPR Umeda Loft -79

1,348

Utilities
expenses（net）
Internal
growth 144

262

Gain ontransfer ofproperty

Adjusted
EPU

79Transfer
7,350
of property 90
OthersDPU
95 7,750

Jun. '22 period

Dec. ’22 period (forecast)DPU

JPR Umeda Loft -72

Expenses

7,600

Adjusted
EPU

7,380

Internal
growth22

Others72
Transfer ofproperty

Internal
growthDec. ’21 period

-204
-105
+54

853
DPU

Dilution

301

+21
+269

Retainedearnings

832

Others

36

+151
+72

Retainedearnings

Gain ontransfer ofproperty

Increase in rent and common charge (rent revision etc.)
Increase in rent and common charge (move-in/ move-out)
Decrease in cancellation penalty income and income
equivalent to expense for restoration
Increase in property and other taxes
Decrease in repairs and maintenance expense

+30
-20

80

220

Use ofinternal
reserves

Jun. ’23 period (forecast)

1. Fluctuations in distribution per unit are shown as amounts calculated by dividing the amounts of changes in each fiscal period by the number of investment units outstanding as of the end of the fiscal period preceding each such period.
For the June 2022 period, the amounts of change items before and after calculating the adjusted EPU are shown as those divided by the total number of investment units outstanding at the end of December 2021 (958,250 units) and the total
number of investment units newly issued after capital increase (997,178 units), respectively.
2. "Adjusted EPU" is net income per unit before recording of gain (loss) on sale of real estate, etc.

7

2. Operational Status and Growth Strategy

2. Operational Status
and Growth Strategy

Growth Strategy

Aim for sustainable improvement in unitholder value through the acceleration of external growth, effective asset
replacement, and the strategic utilization of gain on transfer and retained earnings

Unitholder
value

Expand scale/Improve
quality of portfolio throughsponsor pipeline

Growthdrivers

Stabilize distributions throughcapitalization of gain ontransfer and utilization ofretained earnings

Properties acquired using
sponsor pipelines*1

Pace of expansion in asset size

Retained earnings*1✓ Total acquisition price:366.6 bn. yen✓ 2016-2019: 29.2 bn. yen✓ Total: 4.22 bn. yen✓ 2020-: 48.8 bn. yen✓ 4,238 yen per unit

High level of operational
capability throughcollaboration with Tokyo
Tatemono, which is the mainsponsorCommitment to sustainability→75.1% of total portfolio

Operationalframework

Accelerate external growthutilizing low LTV

Diversified robust portfolio
focused on favorably locatedoffice properties in Tokyo*1. Amounts and percentages indicated under "Properties acquired using sponsor pipelines" and "Retained earnings" are estimates as of the end of the Dec. '22 period.

9

2. Operational Status
and Growth Strategy

DPU Strategy

Set immediate target of 7,600 yen on way to achieving medium-term target and aim for achievement in approximately 2
years.
Utilize retained earnings to ensure minimum distribution of 7,600 yen until achievement of immediate target.

Change in Distribution per Unit and Medium-term Target
Adjusted EPU*1

Gain on transfer*2

Use of internal reserves

7,800
New Minimum
distribution
7,600(yen/unit)

Utilize retained earnings if
distribution is less than
immediate target of 7,600 yen.

7,400

7,297

7,750

7,350

7,600

7,380
Growth drivers

Raise the level of theminimum distribution
through the utilization of
ample retained earnings

Growth drivers(Old) Minimum
distribution
7,550

Acceleration of
external growth

Recovery ofoccupancy+
External
growth'21.12Retained earnings
per unit (yen)7,800

Immediate target
7,600

7,550

Medium-term Target

2,657

'22.6

3,386

'22.12'23.6(Forecast)(Forecast)

4,238

4,018

2 years'24.12'23.12 Approx.
'24.6

'25.6

'25.12'26.6← Ample level of retained earnings relative to other J-REITs*1. "Adjusted EPU" is net income per unit before recording of gain on sale of real estate, etc.
*2. "Gain on transfer, etc." is gain (loss) on sale of real estate, etc. less the impact of property transfer on general management expenses and retained earnings.

10

2. Operational Status
and Growth Strategy

Operational Status Summary
Result97.8%

Period-on-period
comparison+0.9pt+0.8%±0.0pt-1.7%-0.5ptJun. ’22 period

Period-on-period
comparison

Asset size

492.2 bn. yen+7.4 bn. yen

Number of Properties

67 properties+ 1 property

Jun. ‘22 period

Internal
GrowthStrategy

External
GrowthStrategy

Financial
Strategy

Occupancy rate
Ratio of increase/decrease on rent revision
Ratio of increase/decrease on tenant
replacement• Acquire Tokyo Tatemono Higashi-Shibuya Bldg.
• Conduct the second part of the sale of JPR Umeda Loft
Bldg., and achieve capitalization of gains on transfer andexpansion of retained earnings.
Jun. ’22 period

Period-on-period
comparison

LTV

40.0%

-1.7ptAverage debt interest rate

0.74%

+0.01pt

Average maturity

5.0 years+0.4 years

Business environment perception

Future initiatives• The rise in the vacancy rate in the Tokyo officemarket has come to a halt, and the rate shows atendency to remain mostly flat.
• Although teleworking is becoming firmly establishedto some extent, the tendency for companies toattach importance to offices is strongly rooted.
• Office buildings are increasingly selected based on
location/spec.

• Implement flexible leasing activities
according to changes in the market
environment and tenant needs• Continue to monitor COVID-19
pandemic, energy price trend, andnew supply in central Tokyo plannedfor 2023• The property sales market remains overheated, andopportunities to acquire properties on the open
market are limited.
• Tokyo Tatemono, which is the main sponsor, will
pursue "expansion of property sales to investors"
and "expansion of AUM of affiliated REITs, etc."• Focus on acquiring office buildings inTokyo, taking full advantage of thesponsor pipeline, and also acquire
well-located properties in major
regional cities.
• Seek to improve the quality of theportfolio through asset replacement.
• Consider acquisitions of hotels basedon careful assessment of recovery of
demand and other factors.

• Although monetary tightening is underway inEurope and the United States, monetary easing isbeing maintained in Japan, and conditions remainfavorable for debt financing.

• Exercise conservative LTV control.
• Exercise debt management based onawareness of financial soundness.
• Monetary monetary policy andinterest rate trends.

• The importance of sustainability in Japan andoverseas will continue to increase.

• Make steady progress on 2030
strategy targets and material issues
through cooperation with relevant
parties both inside and outside thecompany.
• Aim to achieve net zero carbon
emissions by 2050 for the realizationof a decarbonized society.

• Public offering was made in January this year.
(Amount raised: 13.8 billion yen, Number of units
issued: 38,928)
Green certification acquisition rate*

Sustainability

77.6%• Signatory to the Principles for Financial Action for the
21st Century• Welcoming of outside advisor to Sustainability
Committee* Set new target with higher standards because green
certification acquisition rate target is expected to beachieved this year ahead of schedule (see p27 forfurther details).

112-1. Internal Strategy

Features of Portfolio

JPR has built a robust portfolio diversified in terms of area, grade, asset class and rent zone, with a focus on excellently
located office buildings in Tokyo.
Ratio by grade/asset class(all properties, ratio of acquisition price)

Retail properties
18.8%
Office properties
in Other Cities
12.1%

S Class
6.1%

Ratio by area(all properties, ratio of acquisition price)
Chuo Ward

Other cities
14.8%

A Class
13.4%
B Class
19.6%

Greater Tokyo 10.6%
C Class
outside Tokyo’s
12.1%
7.4%
23 wards
Land with
Tokyo’s 23 wards
leasehold interest

12.1%
Chiyoda Ward

Great Tokyo
outside Tokyo’s
23 wards
18.5%

13.1%
Tokyo’s other18 wards

15.7%
Minato Ward
4.3%
11.0%
Shinjuku Ward
10.4%
Shibuya Ward

Diversification of grade and asset class

Well-balance regional diversification
with focus on Tokyo

Ratio by Rent Zone
(office properties, ratio of acquisition price)

Ratio by number of minutes walk from nearest
station (all properties, ratio of acquisition price)

30 thousand yen
Less thanor more15 thousand yen
15.1%
8.9%
15 to less than 25 to less than
20 thousand yen 30 thousand yen
13.6%
27.0%
20 to less than
25 thousand yen
35.4%

76.0%

Within5-10 minutes
Within3-5 minutes

9.7%

Directly linked

16.5%

16.6%
Within
1 minute
Within
1-3 minutes

29.6%

27.6%
73.7%

Focus on office buildings in rent zone 15 toless than 20 thousand yen per tsubo, which
are in highest demandOver 70% of properties are located within a
3-minute walk of the nearest station

1. Figures reflect the sale of entire interest in JPR Umeda Loft Bldg.
2. Ratio by Rent Zone (office properties, ratio of acquisition price) figures do not include Grand Front Osaka.

122-1. Internal Strategy

Diversification of Portfolio

Build a stable portfolio with good investment ratio diversification.
Through tenant replacement, the number of office tenants with occupancy of 1.0% or more was reduced to only one.

Tenant diversification (based on tenants by property;
as percentage of area)

Investment ratio diversification
12.0%

1.5% on average

End of Dec. ’19 period

OfficeLand with leasehold interest

Less than 1.0%
Office Tenants
60.7%

Retail properties

Retail properties

Sponsors, etc. with 1.0% or more

10.0%

1.0% or more Office Tenants

Portfolio mostly consists ofproperties in which investment
ratio is 3.0% or less

NOI yield

8.0%

Yakuin Business
Garden

A company

1.3%

Rise Arena Bldg.

B company

1.3%

Olinas Tower

C company

1.1%

JPR Nagoya
Fushimi Bldg.

D company

1.0%

4.6%

Total
6.0%

Olinas Tower

4.8% on average

Tenant concentration risk
was lessened

End of Jun. ’22 period

4.0%
The Otemachi Tower(land with Leasehold Interest)↑
JPR owns the land with leasehold interest,
and revenue is extremely stable.

2.0%

Less than 1.0%
Office Tenants
67.9%

Retail properties

Sponsors, etc. with 1.0% or more

1.0% or more Office Tenants
0.0%
0.0%

2.0% 3.0% 4.0%

6.0%

Investment ratio

8.0%

10.0%

JPR Nagoya
Fushimi Bldg.
Total

D company

1.0%

1.0%

1. NOI yield is based on book value.

132-1. Internal Strategy

Impact of Increase in Office Supply

In 2023, an increase in office supply is planned but the large buildings will be concentrated in Minato Ward including
Toranomon and Mita.
Due to differences in terms of area, building grade, rent price bracket and suchlike, the impact on JPR's portfolio will belimited.
Office buildings scheduled to be completed in 2023
(in order from largest to smallest by total area)
No.

Building name

Address

Floor space(tsubo)1

Toranomon-Azabudai Project's A District
Main Tower

Minato Ward

61,7002

TOKYO MITA RE-DEVELOPMENT PROJECT

Minato Ward

60,4003

TTM project

Minato Ward

32,3684(Tentative) Toranomon Hills Station Tower
A-1 District

Minato Ward

31,0005

Sumitomo Realty & Development NishiShinjuku 5-chome Project

Shinjuku Ward

27,4006

Shibuya Sakuragaoka Project

Shibuya Ward

25,5137

Shibuya-ku Dogenzaka 2-Chome
Development Project

Shibuya Ward

25,4108

Gotanda Project

Shinagawa Ward

20,873

9

Toranomon 2-chome District Redevelopment
Business Tower

Minato Ward

16,000Shinagawa Ward

9,468

Minato Ward

5,189

12 (Tentative) Toho Hibiya Promenade Building

Chiyoda Ward

5,050

13 (Tentative) TCG building Rebuilding Project

Minato Ward

5,000

10 Higashi Gotanda 2-chome Project
11(Tentative) POLA Aoyama Building
Rebuilding Project

Map of buildings scheduled to be completed in 2023

The properties scheduled tobe completed areconcentrated on Minato Ward.
●: Property owned by JPR●: Property scheduled to be completed

1. Prepared by TRIM based on materials published by CBRE K.K.
2. Properties scheduled to be completed having a total floor area of 5,000 tsubo or more are shown.

14

2-1. Internal Strategy

Occupancy Status

Continue to maintain high occupancy relative to the market.
Aim to improve occupancy through flexible leasing activities that meet market needs.

Occupancy rate

Major move-ins/move-outs■’22.12■’22.6

Occupancy rate based on concluded contracts
Occupancy rate based on generated rents

98.6%

99.5%
98.9%

99.6%
99.5%

99.4%

98.2%

99.1%

97.4%

96.9%

97.8%

95.8%

95.1%

-711

'19.12'20.6'20.12'21.6'21.12

'22.6

-208

BYGS Shinjuku Bldg.
Shinjuku Square Tower'22.12 (period)(Forecast)

4,217-4,005JPR Omiya Bldg.

95.3%

1,602
-1,4081,844-1,484 -178

360

-236

-1,276-1,218

Tokyo Tatemono Higashi-Shibuya Bldg.

Occupancy rate excluding the impact of the tenant move-out
at Gotanda First Bldg.
Occupancy rate based on concluded contracts
Occupancy rate based on generated rents

97.4%

96.9%

938
1,592

Status of move-ins and move-outs- The move-out of a large tenant that had been scheduled for the end of November 2022
was moved forward to the end of August based on agreed cancellation.
- The impact on results for the Dec. '22 fiscal period will have no efffect because JPR will
receive an amount equivalent to rent to the end of November.
- The future management policy is currently under examination.

98.2%

208

3,791

Rise Arena Bldg.

Status of Gotanda First Bldg.

(m2)-4,241

Gotanda First Bldg.

96.6%(period)

Move -ins-5,608

Tenjin 121 Bldg.

'19.6■’22.12

Move -outs
Olinas Tower

99.2%■’22.6

97.8%

95.8%

95.1%

2021年12月’21.12

2022年6月’22.6

Move-in spaces

Occupancy rate

Move-out spaces

Move-out rate

(m2)

4.2

20,00010,000

1.6

2.5

2.7
0.8

6

2.6
3

1.0

1.0

0
97.2%

95.8%

-10,000-20,000

0
-2.2

-1.7

'19.6

'19.12

-0.7

-1.3
-3.8

'20.6

'20.12'21.6-2.9'21.12

-3
-3.9
'22.6

-2.4
-6
'22.12 (period)(Forecast)

2021年6月’21.6

2022年12月’22.12 (period)(Forecast)

1. Only figures for occupancy rate based on concluded contracts include Grand Front Osaka.

15

2-1. Internal Strategy

Status of Rent

Seek to maintain and raise rent levels by increasing the competitiveness of properties through appropriate improvements

Ratio of increase/decrease on rent revision/tenant replacement (% of total contracts)

Monthly rent revision increase/decease■ Rent revision
Upward revision (existing tenant)(million yen)

Downward revision (existing tenant and tenant replacement)

40

3.6
6.9

20

0

12.9

17.1

13.4

-3.7

-2.6

6.6

29.2

3.6
7.6

16.1
-6.1

2.9

3.7

6.7

4.3
-6.1

-6.8

2.7
-2.2

■ Tenant replacement

Upward revision

Upward revision (tenant replacement)(period)

Decrease in rent

'20.6

56.5

Upward revision

No change

No change

Decrease in rent
43.5

0.0

3.7 11.1

85.1'20.12

32.9

65.7

1.4

63.0

14.8

22.2

'21.6

26.6

72.1

1.2

67.6

10.8

21.6

-35.8

-20
Of which, reductionof large tenants -34.6'21.12

17.9

80.2

1.9

39.6

16.7

43.8

'22.6

15.8

82.6

1.6

45.8

8.5

45.8

-40
'19.6

'19.12'20.6'20.12'21.6'21.12'22.6'22.12 (period)(Forecast)050

100 (%) 0

50

100 (%)

Status of gap in rent
(office/by fiscal period of rent renewal)

Average free rent period(million yen)(month)+40

Lower than market rent

Higher than market range (new contract, etc.)

Within market range

Higher than market range (except for new contract)6+20

Gap in rents

3.5

+0

%
(period-on period
comparison +0.1pt)'22.6 (period)

-20

4

-0.4

2
0

1.0

0.8

1.0

1.2

'19.6

'19.12'20.6'20.12

2.4
'21.6

3.7

'21.12'22.12'23.6'23.12'24.6 (period)

1. Rent gap figure is only figure including Grand Front Osaka.
2. Forecast of monthly rent increase/decrease (forecast increase) for Dec. ’22 period is sum total of upward or downward revisions and increases or decreases in rent upon tenant replacement.

16

2-1. Internal Strategy

Leasing Status of Properties Requiring Priority Action

Properties for which leasing activities are being stepped up
Shinjuku Square Tower

Central Tokyo

Olinas Tower

OfficeGreater Tokyo

OfficeJPR Omiya Bldg.

Greater Tokyo

OfficeTarget Area

766 tsubo

Target Area

756 tsubo

Target Area

726 tsubo(Ratio in portfolio)(0.5%)(Ratio in portfolio)(0.5%)(Ratio in portfolio)(0.5%)- Multi-purpose redevelopment
project situated among theskyscrapers clustered in NishiShinjuku- A large tenant (JPR's equity
interest: 818 tsubo) was moving
out in stages until August this year.
- Plan to renovate the common
areas to increase the building’s
competitiveness.
- Seek to fill the vacant spacequickly by stressing the property
size and high-grade feel.

- This integrated office, retail, andresidential development is a landmark
building in the Kinshicho area.
- Although a large tenant (1,592
tsubo) moved out in March this year,
70% of vacated space was filled
without downtime.
- Renovate common areas tostrengthen the building’s
competitiveness.
- Seek to fill the vacant space quickly
by stressing that the property is thebest in the area in terms of size andhigh-grade feel.

- Omiya area serves as hub in Kita
Kanto and many companies havebranches and sales offices there.
- The building is highly competitive in
the area in terms of location andgrade.
- Although a large tenant (5 floors,
1,211 tsubo) moved out in April thisyear, 2 floors were completely filled
without downtime.
- Implement flexible leasing activities
according to tenant needs, including
subdividing floors.

Oct. '21

May '22

Sep. '22

Mar. '22

Jun. '22

Nov. '22

Mar. '22

Apr. '22

Jun. '22

89.0%

94.6%

86.9%

77.9%

92.5%

89.6%

100%

41.7%

65.0%

Tenants found
Rise Arena Bldg.

Greater Tokyo

Tokyo Tatemono Higashi-Shibuya Bldg.

OfficeCentral Tokyo

Target Area

3,185 tsubo

Target Area

481 tsubo(Ratio in portfolio)(2.1%)(Ratio in portfolio)(0.3%)- Connecting directly to Higashi-Ikebukuro station on Tokyo Metro
Yurakucho Line, the building offers excellent access to transport.
- A tenant leasing all floors moved out in January last year.
- Leasing activities progressed rapidly from last autumn when thestate of emergency was lifted.
- The vacant space was filled in April this year and a rent increaseon tenant replacement was also achieved for all office units.
- Tenant concentration risk was lessened through shift to multitenant building.

Office- Building with high visibility situated on Meiji-Dori Avenue in
Shibuya which is undergoing redevelopment- Tenant moved out from two floors (368 tsubo) in February thisyear.
- Quickly filled vacant space by attracting growing companies, etc.
in accordance with leasing strategy that takes area
characteristics into consideration.

Jan. '21

Dec. '21

Apr. '22

Jan. '22

Feb. '22

Aug. '22

0%

64.0%

100%

95.2%

79.6%

100%

1. For buildings co-owned with other rights holders, the area equivalent to JPR's equity interest is shown. For Rise Arena Bldg., the area equivalent to JPR's equity interest after the additional acquisition of equity interest completed in October
2021 is shown.

17

2-1. Internal Strategy

Retail Property

Maintain high occupancy, with long-term fixed rent as the basic format.
The amount of temporary rent reductions and the number of cancellations as a result of the COVID-19 pandemic
decreased.
Status of temporary rent reductions and cancellations*1

Number of
temporary
reductions
Amount of
temporary
reductions

Jun. ‘20
periodDec. ‘20
periodJun. ‘21
periodDec. ‘21
periodJun. ‘22
period

61

41

35

20

7

94 million yen 45 million yen 67 million yen 47 million yen 12 million yen

Number ofcancellations

－

2

10

6

Tenant sectors

100.0

100.0

99.3

99.5

99.9

'19.12'20.6'20.12'21.6'21.12'22.6 (period)

Yurakucho Ekimae
Bldg. (Yurakucho
Itocia)FUNDES Ueno

90.0

Main retail properties

Type of rent

2.3%

4.5%
Fixed rent andcommission

Other

Commission

RetailFixed rent

91.1%
Type of rent
16.0%

94.8%

84.0%
*2. Figures exclude JPR Umeda Loft Bldg.

JPR Shibuya
Tower Records
Bldg.

Remaining contract periodLess than 2 years

26.9%

JPR Chayamachi
Bldg.

JPR Ginza
Namiki-dori
Building

5 years
or more27.8%

2 years or more andless than 3 years
Ordinarybuilding lease

Urban
type

0.7%

3.6%

Fixed term
building lease

100.0

100.0

80.0

Status of lease contract (retail properties, space ratio)*2

Bars &
restaurants 3.0%(%)

1

*1. Figures exclude Grand Front Osaka.

Services

Average occupancy rate (retail properties)

Stationfront type0.9%
3 years or more andless than 5 years

44.4%

Kawasaki Dice Bldg.

Tanashi ASTA

JPR Musashikosugi
Bldg.

Housing Design
Center Kobe18

2-2. External Strategy

Acceleration of Pace of Property Acquisitions Utilizing Sponsor Pipeline

The pace of expansion in JPR's asset size accelerated, partly due to the Medium-Term Business Plan of Tokyo Tatemono,
which is the main sponsor.
Tokyo
TatemonoCo., Ltd.

2015-2019
Tokyo Tatemono's previous Medium-Term Business Plan

2020-2024
Tokyo Tatemono's current Medium-Term Business Plan

Key Strategies (excerpt)

Changes in Asset Size

Further expansion of Group AUM and profit opportunities

Expand property sales toinvestors

Total investment amount 100.0 billion yen (as of the end of June2022) *1

Strengthen fund business

AUM, including affiliated REITs, of 1.5 trillion yen (forecast of ‘24)

Growth from 2020:
48.8 billion yen(100 million yen)

5,000

4,922
4,848

Growth between 2016 and 2019:29.2 billion yen

4,675

4,656

Dec. '20
PeriodJun. '21
Period

4,883

4,571
4,500
4,350

4,350

4,350

4,350

Jun. '17
PeriodDec. '17
PeriodJun. '18
PeriodDec. '18
Period

4,395

4,395

Jun. '19
PeriodDec. '19
Period

4,214

JPR

4,103

4,103

Dec. '15
PeriodJun. '16
Period

4,000

3,500

Dec. '16
PeriodJan. '17
PublicOffering

Jun. '20
PeriodFeb. '20
PublicOffering

Dec. '21
PeriodJan. '22
PublicOffering

Jun. '22
PeriodDec. '22
Period(Forecast)*1. Balance of real estate for sale except for logistics properties in commercial properties business of Tokyo Tatemono Co., Ltd.(Total investment amount)192-2. External Strategy

Continuous Implementation of Asset Replacement Strategy

Achieve realization of unrealized gains and improvement in portfolio quality through asset replacement with sponsor
2017

2016
Property to beacquired

FUNDES
Suidobashi

JPR Ginza
Namiki-dori
Building

Shinagawa Canal
Tokyo Square
Bldg. (Additional
Gardenownership)

Sponsorpipeline

Sponsorpipeline

Sponsorpipeline

3.25 billion yen

10.1 billion yen

Preferential
negotiationright

18.4 billion yen 0.17 billion yen

Assetreplacement

Assets transferred

JPR Hakata
Chuo Bldg.

Fukuoka
Bldg.

Sponsors

Sponsors

Building age
23 years

Building age
26 years

2020

2019
JPR Kojimachi
Bldg.

FUNDES Ueno

Sponsorpipeline

Sponsorpipeline

5.75 billion yen

3.8 billion yen

Otemachi Financial City
North Tower

Sponsorpipeline

Sponsorpipeline

3.75 billion yen 13.87 billion yen

Assetreplacement

Tokyo Tatemono
Kyobashi Bldg.

JPR Hakata Bldg.

Properties acquired otherthan from sponsors
121.7 billion yen

Tokyo Tatemono
Grand Front Osaka Higashi-Shibuya
Bldg.
Sponsorpipeline

7.3 billion yen

Sponsorpipeline

21.3 billion yen

11.3 billion yen

Tokyo Tatemono
Honmachi Bldg.

JPR Umeda Loft Bldg.

Sponsors

Building age 35 years

Building age 51 years

Building age 31 years

Continue strategic asset replacement
Properties
acquisition fromsponsors
274.0 billion yen

24.7%

2022

Asset
replacement

Sponsors

Building age 38 years

Rise Arena Bldg.
(Additional
ownership)
Preferential
negotiationright

11.4 billion yen

Sponsors(Breakdown of owned properties by seller)

55.7%
19.6%

Sponsorpipeline

Sencity Bldg.

Assetreplacement

Utilizing sponsor pipeline

Properties
acquired basedon information
provided bysponsors
96.4 billion yen

JPR Shinsaibashi
West

2021

Properties
acquired using
sponsor pipelines

75.3%(Top 5 portfolio properties)

1

2
3
4
5

Property Name
Billion yen
Otemachi Tower (Land36.0with Leasehold Interest)
Olinas Tower
31.3
Grand Front Osaka
21.3
Shinjuku Center Bldg.
21.0
Tokyo Square Garden
18.4

All are sponsor pipeline properties
or sponsor development properties

1. Regarding JPR Loft Building (acquisition price: 17.5 billion yen), JPR conducted the first part of the sale (40%ownership interest) on December 24, 2021 and the second part of the sale (30% ownership interest) on June 30,
2022, and plans to conduct the third part of the sale (30% ownership interest) on December 23, 2022.
2. JPR makes decision based on circumstances at the time of acquisition.

◼ Create a strong portfolio through continuous asset replacement◼ Capitalize gain on transfer through realization of unrealized gain and expand

retained earnings

JPR

Strategic sales⚫ Improve portfolio quality(including reducing averagebuilding ages, enhancing earningpotential and improving location)⚫ Capitalize gain on transfer
through realization of unrealized
gain and expand retained
earnings⚫ Acquire prime properties at areasonable price

Main sponsor(Tokyo Tatemono)⚫ Tap into needs to acquire

Asset
replacement

redevelopment properties⚫ Step up property sales toinvestors⚫ Expand group earning

Acquisition ofprime properties

opportunities bystrengthening fund businessincluding affiliated REITs

20

2-2. External Strategy

Sponsor pipeline

Actively take advantage of sponsor pipeline to expand acquisition opportunities
Properties owned by Tokyo Tatemono Co., Ltd.
in the vicinity of Tokyo Station

Tokyo Tatemono's pipeline
Real estate for long-term ownership reclassified
as real estate for sale
■ Properties reclassified as real estate for sale
Between the end of December 2018 and the end of December 2021:
Approx. 54.0 billion yen■ Properties acquired by JPR
JPR Kojimachi Bldg.
JPR Shinsaibashi West5.75 billion yen Acquired June 20193.75 billion yen Acquired January 2020

Otemachi Financial City
North Tower

11.4 billion yen Acquired December 2020

Grand Front Osaka

21.3 billion yen Acquired December 2021

Tokyo Tatemono HigashiShibuya Bldg.

Completionyear

Otemachi Tower

2014

Otemachi Financial
City Grand Cube
JA Building,
Keidanren Kaikan
Tokyotatemono
Takaracho Bldg.
Tokyo Tatemono No.
3 Takaracho Bldg.
Nihonbashi TI Bldg.

2016

Tokyo Tatemono
Nihonbashi Bldg.
Nihonbashi First
Bldg.
Shin-gohukubashi
Bldg.
Tokyo Tatemono
Yaesu Bldg.

OtemachiFinancial City
North Tower

2009
1966
1971

2012
NihoNihombashi
Mitsukoshi Main
Store

2015
1994
1977
2011

NTA Nihonbashi Bldg. 1991

11.3 billion yen Acquired January 2022

Real estate for sale developed as property for investors■ Medium-sized office
T-PLUS Sendai Hirose Dori
(Tentative name) Sapporo Kita 8-Jo
Nishi 1-chome Redevelopment Project

Scheduled to be completed Spring ’23(Tentative name) Shibaura Project

Scheduled to be completed Spring ’24

T-PLUS Sendai

Scheduled to be completed Spring ’24

Scheduled to be completed Winter ’23■ Urban compact retail properties
FUNDES Tenjin Nishi DoriName

Completed Mar. ‘22■ Properties acquired by JPRTokyo Tatemono
Yaesu-sakuradori
Bldg.
Kyobashi YS
Bldg.

1974
Daimaru Tokyo
Department Store

1990

Empire Bldg.
Kyobashi Edogrand
Bldg.

2017

Fukuoka Bldg.
Tokyo Square
GardenTokyo Tatemono
Kyobashi Bldg.

1990

Tokyo Sta.

2016

3.25 billion yen Acquired December 2016

FUNDES Ueno

3.8 billion yen

NihoNihonbashi
Takashimaya
Department Store

2013
1981

■ Construction completion:

Up to and including 2000
■ 2009 - 2014
■ 2015 and thereafter

Yaesu
Book Center
Tokyo
Internatio
nal Forum

Kanematsu
Bldg.
Kanematsu
Bldg. Annex

owned properties□ Jointly(Tokyo Tatemono,JPR)■ Owned properties(JPR)

FUNDES Suidobashi

MaruzenBook StoreJR Keiyo Line
Yurakucho Mullion

Yurakucho
ItociaAcquired June 201921

2-3. Financial Strategy

Financial Status

Build strong financial base through lengthening of maturity and flattening of repayment amount and conservative LTV
control
Debt procurement results in the Jun. ‘22 fiscal
period (short-term loans excepted)

Amount raised

Beforerefinancing

Funding

Increase/
Decrease

10.5 billion yen

18.5 billion yen+8.0 billion yen

Average maturity

5.7 years

9.2 years+3.4 years

Average debt interest
rate

0.55%

0.64%

+0.08pt

Diversification status of repayment dates
Long-term loans payable(100 million yen)

Investment corporation bonds

New debt procurement (Jun. '22 fiscal period)

200

Commitment limit 24.0 billion yen(Debt procurement resultsin the Jun. '22 fiscal period)

150
30
30

100

Status of interest-bearing debts
Dec. ‘21
Interest-bearing debt

Period-onperiod
comparison

Jun. ‘22

206.9 billion yen 202.9 billion yen-4.0 billion yen

LTV

41.7%

40.0%

-1.7ptAverage maturity

4.6 years

5.0 years+0.4 years

Ratio of long-term,
fixed interest rate debts

0.73%
94.2%

0.74%

85
130

80 80

130
70 80

AA (Stable)

110
60

35

20
30

14

30

10

(period)

Change in LTV(%)

Control, aiming for maximum LTV of 40-45%

100.0%+5.8ptDebt acquisition capacity:
Approx. 46.0 billion yen

4341

AA- (Stable)

50

71

90

+0.01pt

Status of rating

R&I

118

102

90

0

PublicOffering

JCR

109 100

60

25

40

45

Average debt cost

50 30

20

50

50

40.8

S&P

A (Stable)

40.6

39.5

41.7
40.6

PublicOffering'21.6'21.1240.0

39'19.12'20.6'20.12'22.6

22

2-3. Financial Strategy

Diverse Status of Lenders (as of June 30, 2022)

Diversifying fund procurement sources with a lender formation comprising 36 financial institutions and through issuanceof investment corporation bonds(Breakdown of investment
corporation bonds)
Name
Bank of Kyoto, Ltd. [New]0.5

Sumitomo Mitsui Trust Bank, Ltd.

1.0

7th series of bonds

45

18th series of bonds

20

19th series of bonds

50

21st series of bonds

40(Of which sustainability loan 0.6)

22nd series of bonds

30(Of which green loan 1.0)

23rd series of bonds

30

Mizuho Bank, Ltd.

Mitsui Sumitomo Insurance Company, Ltd. 1.0

Amount24.0

Hiroshima Bank, Ltd.

1.0

The Hyakugo Bank, Ltd.

1.0

Investment

Tokio Marine & Nichido Fire Insurance

1.0

corporation bonds

The Chiba Bank, Ltd.

1.0

Daido Life Insurance Company

1.0

MUFG Bank, Ltd.

Daishi Hokuetsu Bank, Ltd.

1.0

21.0

The 77 Bank, Ltd.

1.0

Kansai Mirai Bank, Ltd. [New]1.0

NTT TC Leasing Co., Ltd.*

1.0

Resona Bank, Ltd.

2.0

The Yamanashi Chuo Bank, Ltd.

2.0

The Hachijuni Bank, Ltd.

2.0

Nippon Life Insurance Company

2.0

Sompo Japan Insurance Inc.

2.0

The Kiyo Bank, Ltd.

2.0

The Iyo Bank, Ltd.

2.0

Yamaguchi Bank, Ltd.

3.0

The Chugoku Bank, Ltd.

3.0

Taiyo Life Insurance Company

3.0

The Nishi-Nippon City Bank, Ltd.

4.0

The Shinkumi Federation Bank

4.0

Sumitomo Life Insurance Company

4.0

37.9

Interest-bearing
Sumitomo Mitsui
debt balanceBanking Corporation
202.9 billion yen
15.0
Development Bank

24th series of bonds(Green bond)25th series of bonds(Green bond)26th series of bonds

27th series of bonds(Sustainability Bonds)
28th series of bonds(Green bond)

60
30
14
10

(Status of commitment line)
Lenderof Japan, Inc.

Creditlimit

10.9

Mizuho Bank, Ltd.

40

Shinsei Bank,MUFG Bank, Ltd.

40

Sumitomo Mitsui
Banking Corporation

40

Mizuho Trust &Banking Co., Ltd.

40

Aozora Bank, Ltd.

40

Resona Bank, Ltd.

40

Ltd. 10.0

Shinkin Central Bank 7.0
The Norinchukin Bank 7.0
The Bank of Fukuoka, Ltd. 6.0
Meiji Yasuda Life Insurance Company 4.2

50

Mizuho Trust & Banking Co., Ltd. 7.0
Aozora Bank, Ltd. 6.4

Total

240

* Loan claim was transferred from NTT FINANCE CORPORATION to NTT TC Leasing Co., Ltd. on June 30, 2022.

23

2-4. Sustainability

Sustainability Initiatives to Date

Commit to sustainability for the long term.
Position sustainability as a top management priority and continue actively implementing sustainability initiatives.

JPR Initiative

TRIM Initiative Mar. 2019 Jul. 2019

Began issuing Sustainability Report.
Completed first issuance of Green
Bonds.

 Jul. 2020

Participated in CDP Climate Change
Program.
Acquired BELS certification for the
first time.

 Dec. 2020

 Jan. 2022
 Mar. 2022
 Jun. 2022

2005

 Sep. 2013

Achieved "Green Star" status forthe first time in GRESB Real
Estate Assessment.

 Jan. 2013

Established additional BCP for
epidemics.

2013

 Aug. 2005 Launched Tenant Satisfaction
Survey.
 Jan. 2006
 Oct. 2006

Formulated brand strategy.

Launched Best PerformanceAward.
 Aug. 2011 Acquired DBJ Green Building
Certification for the first time.

2015

 Apr. 2019

Established Sustainability
Committee.

 May 2019

Became a signatory of PRI(Principles of Responsible
Investment).

2019

2021

 Feb. 2022

Welcomed outside advisor to
Sustainability Committee.
Procured first sustainability loan
and green loan.
Reset 2030 target for green
certification acquisition rate.
Became signatory to the
Principles for Financial Action forthe 21st Century.

2022

 Jun. 2018

Acquired CASBEE for Real Estate
Certification for the first time.

 Jan. 2021

 Dec. 2015

Launched Employee
Satisfaction Survey.

 Apr. 2017

Launched employee awards
program.

 May 2017

Enacted Sustainability Policy.

 May. 2021 Included in MSCI Japan ESG SelectLeaders index.
 Aug. 2021 Set target of reducing CO2 emissions to
net-zero.
 Dec. 2021 Completed first issuance ofSustainability Bonds.
 Jan. 2021

Determined materiality (JPR/TRIM).

 May 2021

Established a business unit dedicatedto sustainability (Sustainability Group).
Declared support for TCFD.

 Jul. 2021

Enacted Human Rights Policy.

 Jul. 2021

Enacted Sustainable Procurement
Standards.

24

2-4. Sustainability

External Evaluations and Initiatives

Focus on increased acquisition of external evaluations and improving evaluations and becoming a signatory to/ supporting
initiatives.

GRESB Real Estate
Assessment

5 Stars

GRESB Public Disclosure
Assessment

CDP Climate Change
ProgramA

B

PRI(Principles of Responsible Investment)

Became a signatory
in May 2019
(Asset Manager)

MSCI Japan ESG SelectLeaders Index

TCFD

MSCI ESG Credit Rating(Task Force on Climate-related Financial
Disclosures)

Disclaimer
THE USE BY JPR OF ANY MSCI ESG RESEARCH LLC OR
ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS OR INDEXNAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT, RECOMMENDATION, OR PROMOTION
OF JPR BY MSCI. MSCI SERVICES AND DATA ARE THE
PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS,
AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY.
MSCI NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI.

Included in May 2021

CASBEE Certification

DBJ Green Building
Certification

BELS certification

Certification

Certification

31

13

2

properties

properties

properties

Declared support
in May 2021
(Asset Manager)

Principles for Financial Action
for the 21st Century

Certification
Became a signatory
in February 2022
(Asset Manager)25

2-4. Sustainability

Environment

Steadily implement initiatives to reduce CO2 emissions, aiming for early achievement of 2030 target
Step up initiatives to reduce CO2 emissions, aiming to achieve 2050 net-zero target

Reduction of CO2 emissions
Progress on 2030 target of "reducing CO2 emission intensity by 30%(compared to the 2017 level)"

Implementation of initiatives for achievement of 2050 net-zero target◼

Portfolio's CO2 emissions(%)

LED, operations
improvement

100
100.0
75

91.3

Specific strategies for the 2050 net zero target will be established in
the coming months.

Introducing
renewable energy
Pursuing electricity savings by switching
to LED lighting and other means

Lowering emissions
coefficients

92.2

Switching to 100% renewable energy
contracts at wholly owned properties

81.7

79.9

Switching to renewable energy incommon areas and co-owned properties

Thoroughly implementing waste recycling

70.0

CO2 Emission

Demanding that business partners pursue net-zero

50

Encouraging the use of recycled materials andwood materials
Introducing new technologies
such as storage batteries

252017 2018 2019 2020 2021

(Year)

2030 (Year)

1. The calculation method has been changed and is now based on emissions intensity rather than total emissions.

Introducing renewable energy sources◼
◼

◼

Actively promoted the introduction of renewable energy sources
Introduced at 23 out of 32 wholly owned properties(Including unit ownership properties, introduced at 26 properties)
Continue actively introducing at both wholly owned properties and unit
ownership properties in the future through consultation with therelevant parties

Progress of switch to LED◼

Used non-operating hours of tenants and move-in/move-out
construction work as opportunity to switch to LED lighting
Common areas

Exclusively owned
areas(Corridors)(Toilets and hot
water supply rooms)

Rate of progress

52.8%

94.3%

94.2%

Period-on-period
comparison+3.7pt+3.0pt+5.3pt

1. Lighting classed as tenant assets is excluded from the calculation of rate of progress.

26

2-4. Sustainability

Environment

Expect to achieve previous 2030 target of "environmental certification acquisition coverage rate of 80% or more" thisyear ahead of schedule
Set a new target, with higher standards for certification acquisition

Acquisition of environmental certification◼

◼

◼

Acquired first-time certification at two properties in the fiscal period
under review.
Expect to achieve previous 2030 target of "environmental certificationacquisition coverage rate of 80% or more" this year ahead of schedule
Set new 2030 target of Green certification acquisition rate of 80%
or more (4-star/"A" rating or higher)

DBJ Green Building
Certification

CASBEE Certification
(%)

100.0

80.0

2030 target: 80%

77.6
71.4

S

★★★★★ 16 properties★★★★★

1 property★★★

1 property

A

★★★★

★★★★

4 properties★★

1 property★★★

8 properties

B+ ★★★

65.5

53.4

14 properties
1 property

74.3

Sustainability finance initiatives

60.1
60.0

54.4

Existing target◼

Procured first sustainability loan and green loan in March 2022

"Certification acquisition rate of 80% or more"
77.6% (as of the end of June 2022)

Sustainability loan
Lender

40.0

34.0

New targets"Certification acquisition rate of 80% or more,with 4-star/"A" rating or higher"
59.6% (as of the end of June, 2022)

20.0'18.12'19.6'19.12'20.6'20.12

BELS certification'21.6'21.12'22.6'22.12 (Year)(plan)

Mizuho Bank, Ltd.

Borrowing amount 0.6 bn. yen
Period10 years

Use of proceeds

To fund refinancing ofloans necessary for theacquisition of Otemachi
Financial City North
Tower

Green loan
LenderMizuho Bank, Ltd.

Borrowing amount 1.0 bn. yen
Period10 years

Use of proceeds

To fund refinancing ofloans necessary for theacquisition of Rise
Arena Bldg. (additional
ownership)27

2-4. Sustainability

SocialActively focused on improvement of tenant satisfaction and initiatives for Asset Management Company employees.

Initiatives for asset management company (TRIM)
employees

Implementation of a tenant satisfaction survey◼

◼

◼

Survey asks more than 20 questions about building facilities, services,and other aspects.

◼

•

Number of buildings surveyed (left axis)
調査物件数（左軸）

50

3.27

3.16
3.24

3.29

31

32

•

3.50

31

32

32

36

37

37

38

41

39

40

40

45

Encouragement of staggered commuting, telecommuting and web
meetings (loan of PCs and monitors)
Distribution of masks, provision of disinfectant solution andenforcement of social distancing
Installation of acrylic partitions (meeting rooms)
Distribution of antigen testing kits and PCR testing kits, andpayment of PCR testing expenses

3.47

3.00

25

•

3.52

3.44

3.39

3.39

•

4.00
Record high

3.50

3.48
3.29

3.51

3.49

3.43

3.35

3.33

Daily health check•

The surveys are entrusted to a third-party think tank to ensure thefairness of evaluation.

75

Provision of workplace vaccinations to help central and local
governments improve vaccination rate•

The results are shared with property manager (PM) and building
manager (BM) to improve services while also being used as one of themethods for PM appraisal.

総合満足度（右軸）
Overall satisfaction (right axis)

COVID-19 infection prevention measures by TRIM

42

40

39

0

◼

TRIM has introduced an adviser system as part of building anenvironment that encourages new employees to become attached totheir workplace and demonstrate their skills at an early stage.

2.50
•

2.00
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '21 '22[Overview of 2022 CS Survey]
Overall satisfaction: Average value with 4 points being the highest
Survey period: June 2022
Survey scope: 39 properties, 444 tenants
Questionnaire item: management and administration, responses to tenants, crime prevention
and safety, emergency responses and environmental preservation, etc.

•

To facilitate the acquisition of knowledge andskills new employees need to do their work andto raise their motivation, their predecessors inthe same department give advice on how to do
the jobs, how to communicate with others, etc.
TRIM also covers expenses for periodical lunch
meetings and gatherings to develop a
comfortable environment for new employees todemonstrate their skills at an early stage.

1. In 2020, the survey was not conducted due to the COVID-19 pandemic.

28

2-4. Sustainability

Governance

Focusing on further ensuring sound management as a trusted investment corporation/company

Stringent decision-making process for property
acquisitions

JPR’s corporate governance◼

Bolstering supervisory function, enabling supervision based on a muchwider perspective than before, and focusing on ensuring soundness

Position

Name

Executive
Officer

Yoshihiro Jozaki

Supervising
Officer

Attendance atmeetings of Boardof Directors in
41st fiscal period

Current Assignment

Masato Denawa

Tokyo Realty Investment
Management, Inc.
President and CEO

100%
8/8

Partner Attorney, Spring Partners

87.5%
7/8

9.3%

Conclude agreement

82 million yen

Acquisition

Property value×0.5%

Decision making on acquisition
over certain amount

40.1%

Board of Directors

355 million yen

Final decision on acquisition

Distributable base amount
×3.8%×Rate of fluctuation of
distributable base amount per unit

Decision making on acquisition

23.1%

Prior review/approval oftransactions with related parties(Acquisition/Merger fee)
(Sale fee)

204 million yen

Compliance Committee
JPR s Board of Directors

Management fees 4/5

Total revenue×1.2%’

Due diligence(Cash distribution-linked fee)27.4%

Due diligence subcommittee

Management fee 3

242 million yen

Decision on acquisition policy(Revenue-linked fee)

Total acquisition price×0.05%

Decision making on acquisition

Management fee 2

Share

Review, screening(Asset-linked fee)

(Jun. '22 Period)

An outside attorney has been appointed as a special member of theCompliance Committee.

Compliance subcommittee

Management fee 1

Remuneration

In particular, the adequacy and rationality of transactions of materialtransaction conducted with the sponsors, etc. are screened and verified
by the Compliance Committee and require the unanimous approval of
all members, in principle.

Proposal, planning

100%
8/8

Decisions on matters such as property acquisitions and operations are
made based on stringent examination from a wide perspective atmeetings of the various committees.

Invest management department

100%
8/8

Asset management fee
Calculation of Compensation◼

◼

Group Representative Partner of
Gyosei Certified Public Tax &SupervisingNobuhisa Kusanagi Accountants' Co.
Officer
Representative Partner ofNobuhisa Kusanagi Office
Professor, Graduate School ofSupervising
Konomi Ikebe
Horticulture, Chiba University
Officer

Item

◼

29

3. Financial Results and Operating Forecasts

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 41st Fiscal Period (Jun. ‘22)
(period-on-period comparison)

Results of the 41st fiscal period ended June 2022 DPU:7,800 yen (up 250 yen, period-on-period)
Achieved record-high DPU mainly due to progress in leasing activities for existing properties and effect of asset
replacement.

31

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 41st Fiscal Period (Jun. ‘22)
(period-on-period comparison)

Total assets increased by 11.3 billion yen due to asset acquisitions and funds were raised by way of public offering.

Item
Current Asset
Cash and deposits (including trust)
Other current asset

Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets

Deferred assets
Investment corporaton bond issuance costs

Investment unit issuance expenses

BalanceSheet(millionyen)

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans 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
SurplusReserve for reduction entry

Unappropriated retained earnings

Total net assets
Unitholder’s equity ratio

Dec. 31 '21
PeriodJun. 30 '22
Period36,35735,547809
459,046446,212
11,804
1,030
211
195
16
495,615
37,711
12,00018,5007,211
200,254
138,500
37,90023,854
237,965
247,860
9,788
1,887
7,901
257,649

40,22039,557662
466,559453,326
11,804
1,427
226
180
46
507,005
25,17816,0002,000
7,178
208,914
149,000
35,90024,014
234,093261,751
11,161
2,546
8,614
272,912

52.0%

53.8%

Change+3,862+4,009-146+7,512+7,114
+0
+397
+15
-14
+29
+11,390-12,532-12,000-2,500+2,000-32+8,659+10,500-2,000+159-3,872+13,890+1,372+659+713+15,263+1.8ptIncrease or decrease in cash and deposits
Item

Change+14,075

Net cash provided by operating activities
Income before income taxes+8,607

Depreciation and amortization+2,046+3,421Other, net-12,677

Net cash provided by investing activities
Purchase of property, plant and equipment-13,101+424

Other, net+2,611

Net cash provided by financing activities
Proceeds from lisbilities+18,500

Repayment of liabilities-22,500

Proceeds through issuance of investment units+13,845

Dividends paid

-7,233

Total cash and deposits+4,009

Increase or decrease in noncurrent assets
Item

ChangeSold properties+7,736

Capital expenditures+1,381

Depreciation-2,045

OthersTotal noncurrent assets+440+7,512Raised through issuance of investment units
Increase or decrease in liabilities
Item

Balance at start of
New procurement
periodRepayment/
redemption

Balance at end of
periodChangeShort-term loans payable

12,000--12,000--12,000

Long-term loans payable

157,000+18,500-10,500

165,000+8,000Investment corporation bonds

37,900--37,900+0206,900+18,500-22,500

202,900-4,000Total liabilities

323. Financial Results andOperating Forecasts

Overview of Financial Results for the 41st Fiscal Period (Jun. ‘22)(compared with forecast)

Results of the 41st fiscal period ended June 2022 DPU compared with the forecast: up 50 yen
Rental revenue was higher than initially forecast due to improvement in the occupancy rate as a result of progress withleasing activities, which offset the impact of rising energy prices

33

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 42nd Fiscal Period (Dec. ‘22)(compared with 41st period)

Forecast of the Dec. ‘22 fiscal period, DPU: 7,750 yen (down 50 yen from actual result for the Jun. ‘22 fiscal period)
DPU is expected to be 7,750 yen, the same as the previous forecast, with an increase in rental income making up for
deterioration in the balance of utilities.

34

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 43rd Fiscal Period (Jun. ‘23)
(compared with forecast for the 42nd period (Dec. ‘22))

Forecast of the Jun. ‘23 fiscal period, DPU: 7,600 yen (down 150 yen from the forecast for the Dec. ‘22 fiscal period)
Rent and common charge is expected to increase despite the absence of gains on sales of transferred properties andrental income.
Retained earnings will be utilized to ensure DPU of 7,600 yen.

35

3. Financial Results andOperating Forecasts

Change in Rental Business Profits and Gain or loss on the sale of properties36

3. Financial Results andOperating Forecasts

Change in Rental Business Revenue

Rental revenue for the Dec. ‘22 period is expected to decrease approx. 90 million yen (period-on-period)
Rental revenue for the Jun. ‘23 period is expected to rise approx. 190 million yen (period-on-period)

Rent revenue (factor for period-on-period changes)
Rent revenue

Plus item(million yen)

Minus item

Rents and common charge+194

Rents and common charge-94
Rents and common charge+603

Move-ins

Moveouts

+494

-521

Acquisition
Sale

+585

Others+13

16,001+29
Move-ins Moveouts
+553

-573

Moveouts

+442

-174

Revision
etc.

+21

Revision
etc.

16,092Move-ins

16,196
Sale

-94
Sale

-104

Others-0

Others+3

15,475
Revisionetc.

+44

Acquisition +835
Sale -249

2021.12Jun. 2022 Period

Dec. ’22 period (forecast)Jun. ’23 period (forecast)37

4. Appendix

4. Appendix

Fund Summary
Dec. 2019 Period

Jun. 2020 Period

Dec. 2020 Period(book value)(appraisal value)(acquisition value)(book value)(appraisal value)(acquisition value)(book value)(appraisal value)(NOI yield)(Afterdepreciation yield)

40.8%
32.9%
4.7%
5.0%
4.0%
3.8%
4.1%
3.2%
3.4%

39.5%
32.2%
4.9%
5.2%
4.1%
4.0%
4.2%
3.4%
4.6%

40.6%
33.2%
4.9%
5.2%
4.1%
4.0%
4.2%
3.4%
4.3%

40.6%
33.1%
4.8%
5.1%
4.1%
3.9%
4.1%
3.3%
3.6%

41.7%
33.8%
4.6%
4.8%
3.8%
3.7%
3.9%
3.1%
3.7%

40.0%
31.9%
4.5%
4.8%
3.8%
3.7%
3.9%
3.1%
3.8%

2.7%

3.7%

3.5%

2.9%

3.0%

3.1%

FFO
AFFO
FFO per unit
EPU
Cash distribution per unit
Dividend yield
ROE
Reserve for reduction entry perunit
Net asset per unit
NAV per unit
Investment unit price(immediately before the ex-rightdate)
NAV multiple
PBR
PER
FFO ratio
Unitholder’s equity ratio(FFO)
Pay out ratio(AFFO)

8,888 million yen
7,305 million yen
9,630 yen
7,491 yen
7,493 yen
3.1%
5.8%

9,341 million yen
7,961 million yen
9,748 yen
7,593 yen
7,595 yen
4.6%
5.7%

9,510 million yen
7,855 million yen
9,924 yen
8,181 yen
7,750 yen
4.5%
6.1%

9,436 million yen
8,066 million yen
9,847 yen
8,474 yen
7,657 yen
3.4%
6.3%

9,006 million yen
7,404 million yen
9,398 yen
8,236 yen
7,550 yen
3.7%
6.1%

9,315 million yen
7,933 million yen
9,341 yen
8,631 yen
7,800 yen
3.8%
6.3%

746 yen719 yen

1,152 yen

1,969 yen

2,657 yen

3,336 yen259,230 yen
368,917 yen

266,984 yen
371,053 yen

267,570 yen
372,725 yen

268,295 yen
375,544 yen

268,875 yen
383,368 yen

273,684 yen
394,302 yen

488,000 yen

329,000 yen

346,500 yen

444,000 yen

403,500 yen

408,000 yen

1.3 times
1.9 times
32.6 times
25.3 times
52.8%
77.8%
94.7%

0.9 times
1.2 times
21.7 times
16.9 times
54.1%
77.9%
91.4%

0.9 times
1.3 times
21.2 times
17.5 times
52.9%
78.1%
94.5%

1.2 times
1.7 times
26.2 times
22.5 times
53.1%
77.8%
91.0%

1.1 times
1.5 times
24.5 times
21.5 times
52.0%
80.3%
97.7%

1.0 times
1.5 times
23.6 times
21.8 times
53.8%
83.5%
98.0%

LTV
NOI yield
Afterdepreciation
yield
Implied cap
rate

1. [after-depreciation] Implied cap rate = [after depreciation] NOI(annualized, forecast for the next fiscal period x 2) / (market
capitalization + interest-bearing debts – cash and deposits + tenantleasehold and security deposits)
2. FFO = Net income + depreciation – gain on loss on sale of real estate
properties (including loss on retirement of non-current assets)
3. AFFO = FFO – capital expenditures
4. EPU = Net income / number of units outstanding (end of period)

Jun. 2021 Period

5. Dividend yield = Cash distribution per unit (annualized, most recent
result x 2) / investment unit price6. ROE (return on equity) ＝ Net income (annualized, most recent
result x 2) / net assets
7. NAV per unit = (Net assets + unrealized gains or losses – total cash
distributions) / number of units outstanding (end of period)
8. NAV multiple = Investment unit price / NAV per unit
9. PBR (price book-value ratio) = Investment unit price / net assets perunit

Dec. 2021 Period

Jun. 2022 Period

10. PER (price earnings ratio) = Investment unit price / EPU (annualized, mostrecent result x 2)
11. FFO multiple = Investment unit price / FFO per unit (annualized, mostrecent result x 2)
12. Unitholder’s equity ratio = Net assets / total assets
13. FFO payout ratio = Total cash distributions / FFO
14. AFFO payout ratio = Total cash distributions / AFFO
15. Reserve for reduction entry indicates the figure calculated by adding or
subtracting the amounts brought forward or reversed in the relevant fiscal
period to or from the balance at the end of the fiscal period.

39

4. Appendix

Portfolio■ Asset size (based on acquisition price, 100million yen),occupancy rate (%)
Office properties in Tokyo

94.0 93.8

92.6 93.1

94.3 94.9

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

3,809

1,636
1,257
922

1,796

1,976 2,026

Office properties in Other Cities 59.0 billion yen

96.7%

Retail properties 95.6 billion yen

Occupancy rate

Office properties in Other Cities
95.2

Office properties in Tokyo 337.5 billion yen(average)

Retail properties

96.1

Breakdown by area and by asset class (as of Jun. 30, 2022)

Occupancy rate

2,092

2,224

2,453 2,519

2,751 2,806

2,994

3,106

3,312

95.6

3,919 3,986

96.9 97.0 97.2 97.5 97.4

97.8 98.3 98.5 98.4 98.2

4,047 4,047 4,055 4,095 4,103 4,103

4,214

99.2 99.2 99.5 99.6 99.4

4,350 4,350 4,350 4,350 4,395 4,395

98.2

96.9

97.8

4,848 4,922
4,571 4,675 4,656

3,415 3,415 3,449

1,396

945

120 .0110 .0100 .0
90. 0
80. 0
70. 0
60. 0
50. 0
40. 0
30. 0
20. 0
10. 0
0.0

1

2
'02

3

4
'03

5

6

7

'04

8
'05

9

10

11

'06

12
'07

13

14

15

'08

16

17

'09

18
'10

19

20

21

'11

22
'12

23

24

25

'13

26
'14

27

28
'15

29

30
'16

31

32

33

'17

34
'18

35

36
'19

37

38
'20

39

40
'21

41

(period)'22(year)■ Every kind of ratio
Ratio by Asset Size

Ratio by Asset Class

Ratio by Area

(Ratio of Acquisition Price)(Ratio of Acquisition Price)(Office Properties, Ratio of
Acquisition Price)
Very large

Urban Retail
Property, etc.
19.4%
Portfolio
management
standards
70 - 90%
for officeproperties

Other cities
15.5%

Office80.6%

Portfolio
management
standards
Tokyo
80~90%
Greater Tokyo
30.0%

Medium-sized(3,000 m2 to lessthan 10,000 m2)

26.2%
Large-sized
Central
Tokyo
54.5%

(10,000 m2 to lessthan 30,000 m2)

22.1%(30,000 m2 or
more)

51.7%

Ratio by Number of
Minutes Walk from
Nearest Station

Ratio by Contract Type(Office Properties, Area Ratio)(Ratio of Acquisition Price)
Within 5-10
minutes
9.6%

Directly
linked16.3%

Fixed-termlease contract
13.6%

Within 3-5
minutes17.3%
Within 1-3
minutes27.3%

Within
1 minute
29.4%

86.4%
Ordinary lease
contract40

4. Appendix

Diversification of Tenants (as of June 30, 2022)■ Ratio of tenant occupancy◼

◼

■ 20 largest tenants (by property; based on end tenants)

The number of office tenants other than the sponsors, etc. withtenant occupancy of 1% or more is only 1 (combined occupancy:1.0%) (excluding property comprising land with leasehold interest).

Category(No. of tenants)

Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenants with
1% or more

24.6%
Sponsors, etc. with
1% or more

■ Ratio by tenant’s industry(office properties, area ratio)*1
Transportation
1.7%
Public Services
3.9%

Medical and Welfare
1.4% Other

Construction
Real Estate 6.4%
7.8%
Manufacturing
10.7%*1. Figures exclude GRAND FRONT OSAKA.

Housing Design Center Kobe

35,444.13

7.2

Seiyu GK

Tanashi ASTA

31,121.71

6.3

19,740.95

4.0

9,558.51

2.0

8,076.85

1.6

Musashiurawa Shopping
SquareJPR Shibuya Tower
Records Bldg.

A company

Cupo-la Main Bldg.

5,963.00

1.2

B company

JPR Umeda Loft Bldg.

5,576.09

1.1

C companyMusashiurawa Shopping
Square5,285.40

1.1

Sponsors, etc.
Tokyo Prime Stage
with 1% or moreInc.
(1 company)

The Otemachi Tower (landwith Leasehold Interest)

7,875.50

1.6

Other tenantswith 1% or more D company(1 company)

JPR Nagoya Fushimi Bldg.

4,904.64

1.0

E company

Yakuin Business Garden

4,719.50

1.0

F company

Sompo Japan Sendai Bldg.

4,392.04

0.9

G company

Shinjuku Square Tower

4,242.48

0.9

H company

Gotanda First Bldg.

4,234.29

0.9

I company

Oval Court Ohsaki MarkWest

4,088.44

0.8

J company

Niigata Ekinan Center Bldg.

4,078.97

0.8

K company

MS Shibaura Bldg.

3,922.74

0.8

L company

Shinjuku Center Bldg.

3,675.59

0.7

M company

Olinas Tower

3,544.12

0.7

N company

Olinas Tower

3,544.12

0.7

1.0%

Services
26.2%

Information andCommunications
16.0%
Wholesale and Retail
Finance and
12.0%
Insurance
12.9%

ABC Development
Corporation

Olympic Group
Retail tenants
Corporation
with 1% or more
Tower Records(8 companies)
Japan Inc.

1.6%

72.8%

Occupying property

Ito-Yokado Co., Ltd. JPR Musashikosugi Bldg.

Other tenants with
1.0%
1% or more

Less than 1%

Ratio of
Leased space
occupancy(m2)(%)

TenantLess than 1%(1,161companies)41

4. Appendix

Move-Ins and Move-Outs of Tenants (as of June 30, 2022)■ Breakdown and changes in move-ins and move-outs(Move-ins)‐(move-out)(Move-in/move-out spaces by area and asset class: m2)
Move-ins

Move-outs

4,661-3,716945

Office properties
in Greater Tokyo

12,209-12,441-232

Office properties
in Other Cities

1,728-1,276452

Retail properties

895

-636

259

19,495-18,071

cost reduction

8%
Consolidation
4%
Better locationor building
11%

Eviction, etc.

or expansion

0

401

Shin-Kojimachi Bldg.

111

-193

304

JPR Crest Takebashi Bldg.

-353

-353

0

Shinjuku Square Tower

182

-178

360

BYGS Shinjuku Bldg.

436-1,4081,844

Across Shinkawa Bldg. Annex

287

0

287

Shinjuku Center Bldg.

385

-205

590

Shinagawa Canal Bldg.

144

0

144

Science Plaza - Yonbancho Plaza

84

-56

140

Tokyo Square Garden

55

-102

157

JPR Kojimachi Bldg.

430

0

430

Tokyo Tatemono Higashi-Shibuya Bldg.

-1,218-1,218JPR Ginza Namiki-dori Building

1,423

New establishment

6%

70%

Moveins
53

Downscaling or
cost reduction
61%

Moveouts
36

or expansion
17%
Better locationor building
11%
Consolidation
6%

Move-ins

401■ Reasons for move-ins and move-outs
Eviction, etc.
New
Downscaling or 8%
establishment

Move-outs

Kanematsu Bldg.

Net Increase/
Decrease

Office properties
in Central Tokyo

Total■ Move-in/move-out spaces by property
(m2)

0

433

0

FUNDES Suidobashi

-174

-174

433
0

JPR Chiba Bldg.

-9

-262

253

Shinyokohama 2nd Center Bldg.

156

-299

455

Kawaguchi Center Bldg.

0

-614

614

Tachikawa Business Center Bldg.

-313

-819

506

Rise Arena Bldg.

3,791

0

Yume-ooka Office Tower

0

-255

255

Olinas Tower-1,391-5,6084,217

JPR Yokohama Bldg.

79

0

JPR Omiya Bldg.

-2,403-4,005

1,602

Sencity Bldg.

-144

-577

433

Kawasaki DICE Bldg.

0

-461

461

Sompo Japan Wakayama Bldg.

790

0

790

Tenjin 121 Bldg.

-338-1,276

938

3,791

79

42

4. Appendix

Yields (as of June 30, 2022)■ Yields by area and by asset class(based on book value)■ NOI yield by property (based on book value)
Central Tokyo

Greater Tokyo and Other Cities(NOI yield)(%)

10

Circle size = portfolio asset size (book value)
Center of circle = NOI yield
Officeproperties
in Central
Tokyo

Officeproperties
in Greater
Tokyo

5.8%

5

0
Kanematsu Bldg.

Officeproperties
in Other
CitiesKanematsu Bldg. Annex
JPR Ningyocho Bldg.

Retailproperties

5.6%

JPR Crest Takebashi Bldg.
MS Shibaura Bldg.

4.9%

4.2%

Shin-Kojimachi Bldg.

Portfolio average
4.8%

Gotanda First Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex

0

Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.

(After-depreciation yield)(%)

10

JPR Nihonbashi-horidome Bldg.

Circle size = portfolio asset size (book value)
Center of circle = after-depreciation yield

JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower (land with…

Officeproperties
in Central
Tokyo

5

Officeproperties
in Greater
Tokyo

4.5%
3.6%

Officeproperties
in Other
Cities

4.2%

Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.

Retailproperties

4.1%

Tokyo Square Garden
JPR Kojimachi Bldg.
Otemachi Financial City North…
Tokyo Tatemono Higashi‐…
JPR Shibuya Tower Records Bldg.

Portfolio average
3.9%

JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.

0

JPR Ginza Namiki-dori Building
FUNDS Suidobashi
Average of Central Tokyo

5

10

3.8
6.9
6.6
7.4
5.3
6.6
6.9
3.7
8.7
4.6
4.7
6.8
3.2
4.0
4.8
4.8
4.9
6.4
3.3
3.5
3.9
6.0
6.9
2.9
2.2
2.7
3.7
4.9
3.2
3.5
3.1
2.5
3.6
4.1

(%)

0

15

5

JPR Yokohama Nihon Odori Bldg.

10.0
8.1
9.3
6.7

Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.

3.3

Yume-ooka Office Tower

5.3
5.6
5.6
5.2

Olinas Tower
JPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.

7.3

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki DICE Bldg.
FUNDES Ueno
Average of Greater Tokyo

4.4
5.4
4.6
4.3
5.8

Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.

6.1

Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.

4.4

Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA (Umekita…
GRAND FRONT OSAKA (North…
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

15

7.0
5.6
7.4

Arca East Bldg.
JPR Chiba Bldg.

Rise Arena Bldg.

(%)

10

3.0

9.7
9.5

11.4
10.1
11.4
9.7
8.6
8.4

5.2
3.4
3.4
4.8
6.7
4.8
5.6

43

4. Appendix

Rent and Occupancy■ Change in occupancy rate and rents
Item

Jun. 2019 period

Dec. 2019 Period

Jun. 2020 Period

Dec. 2020 Period

Jun. 2021 Period

Dec. 2021 Period

Jun. 2022 Period

98.8

99.2

99.4

99.1

97.7

95.8

96.9

98.1

98.3

99.3

98.7

96.5

94.2

93.3

Average rent (entire area), yen

18,177

18,47718,801

18,977

19,166

19,445

19,496

Average rent (central Tokyo), yen

21,45921,83322,18322,31322,451

22,53322,504

Average rent (greater Tokyo), yen

17,24017,403

18,13918,196

18,217

18,42018,362Average rent (other cities), yen

13,375

13,562

13,72013,912

14,067

14,606

14,660

-5.1

-6.9

-4.8

-3.2

-0.6

-0.6

-0.4

99.9

100.0

100.0

100.0

99.3

99.5

99.9

99.8

99.9

100.0

100.0

99.2

99.2

99.4

Occupancy rate based on concluded
contract, %Occupancy rate based on generated
rents, %OfficeGap in rent (%)

RetailOccupancy rate based on concluded
contract, %Occupancy rate based on generated
rents, %■ Status of rent revision, rent through tenant replacement
and contribution rate (Jun. ‘22)
Item

Rent Revisions
Upward revision
Decrease in rent
Neither upward or
downward revision ofrent
Tenant replacement
subtotal
Upward revision
Decrease in rent
Neither upward or
downward revision of
rent
Total (Rent revision +Tenant replacement)

Number ofcontracts

Area(thousandm2)

Area ratio(%)

Increase/
Decrease(millionyen)

Increase/
Decrease
Ratio (%)

190
30
3

95.2
18.3
0.2

83.9
16.1
0.2

+4.1
+4.3
-0.2

+0.8
+4.7
-11.2

157

76.7

67.6

-

-

59

18.3

16.1

-2.1

-1.7

27
27

6.4
10.9

5.7
9.6

+3.7
-5.8

+6.6
-8.5

5
249

0.9
113.5

0.9
100.0

+2.0

+0.3

■ Leased area by rent level/ratio of contracts withupward rent revision (contracts renewed Jun. ’22
period)Area(thousandm2)

Area ratio(%)

Ratio ofcontractswith upwardrevision (%)

Lower than market rent

19.6

22.3

41.2

Within market range

25.4

29.0

10.9

Market rent more

42.8

48.7

2.9

Item

■ Leased area by rent level (contracts renewed Dec.
‘22. period - Jun. ’24 period)
Area (thousand m2)

Area ratio (%)

63.3

25.0

Within market range

79.8

31.5

Market rent more

110.4

43.5

Item

Lower than market rent

44

4. Appendix

Value Enhancing Construction WorkStrengthening the competitiveness of properties through renovation into higher grade buildings and image enhancement

JPR Omiya Bldg.
1st floor elevator hall

BYGS Shinjuku Bldg.
2nd basement floor corridor

Toilet

2nd basement floor toilet

Common area elevator hall45

4. Appendix

Summary of Newly Acquired Property

Tokyo Tatemono Higashi-Shibuya Bldg.
Central Tokyo

OfficeSponsors

Acquired an office building in Shibuya, an area currently undergoingredevelopment, from Tokyo Tatemono, which is the main sponsor
Acquisition highlights◼ The property is a 7-minute walk from Shibuya Station on the JR, Tokyo Metro andTokyu Lines, providing comparatively good access to multiple lines. The property
faces Meiji-dori Avenue and enjoys high visibility.
◼ Equipped with an IC card security system and an indoor drive-in parking lot for 41
cars, the property is a high-spec office building.
◼ The Shibuya area is seeing growing demand especially among IT companies. The
level of new office supply in the future is expected to be low compared with otherareas in Tokyo's central five wards, and demand is expected to remain strong.

Market environment in Shibuya area
■ New office supply in Shibuya Ward will be limited
Level of new office supply by ward (Forecast)(2021-2023)

Trends in asking rents of office buildings inTokyo's central 5 wards and other core cities

Shibuya Ward
1.8%
Acquisition Date

January 18, 2022

Acquisition Price

11,300 million yen

Shinjuku Ward

Appraisal Value

12,100 million yen

2.8%

Total rentable area

7,821.01 m2

NOI yield

4.4%

After-depreciation
yield

3.8%

Occupancy rate (asof acquisition date)Seller140.0%

Others14.1%

130.0%

渋谷区
Shibuya Ward
中央区
Chuo Ward
新宿区
Shinjuku Ward
名古屋市
Nagoya City
Fukuoka City
福岡市

千代田区
Chiyoda Ward
港区
Minato Ward
大阪市
Osaka City
札幌市
Sapporo City
Fukuoka City
Others120.0%

Chiyoda Ward

Minato Ward

12.4%

52.9%

110.0%

100.0%

Chuo Ward

95.2%
Tokyo Tatemono
Co., Ltd.

90.0%

16.0%
Note: Level of supply of office buildings with standard floor area of
50 tsubo or more
Source: Prepared by TRIM based on "Office Rent Data 2021"
published by Sanko Estate Co., Ltd. ("Sanko Estate")

80.0%
2010/122012/12

2014/122016/122018/122020/12Source: Prepared by TRIM based on "Office Rent Data 2021" published by
Sanko Estate46

4. Appendix

Appraisal Value (as of June 30, 2022)

Unrealized gains grew due to an increase in appraisal value Unrealized gains and ratio of unrealized gains remained at ahigh level

Appraisal value and unrealized gains
Appraisal Value

Unrealized gains

Status of change in appraisal value
Ratio of unrealized gains

593. 1 billion yen 128.0 billion yen
27.5%(up 10.3 billion yen from (up 11.1 billion yen from (up 2.0% pt from 40th
40th period (Dec. ‘21)) 40th period (Dec. ‘21))
period (Dec. ‘21))
1. Impact of sold properties is not included in calculation of change from previous period.

➢ The cap rate fell slightly. The property sales market remained buoyant
and unrealized gain increased.
(Appraisal Value)(number of property)

Dec. ’21
periodJun. ‘22
periodIncrease

36

42

Same

22

15

Decrease

810(Direct Cap Rate)(number of property)

Dec. ’21
periodJun. ‘22
periodLowering

28

42

Same

38

25

Rising00Changes in unrealized gains and losses(100 mn. yen)

128.0 billion yen

含み損益（左軸）
Unrealized gains and losses (left axis)
含み損益率（右軸）
Ratio of unrealized gains and losses (right axis)

1,400

(%)

30

1,200

27.5%

1,000
800

20

600
10
400
200
0

0
-200
-400

'02.6

'04.6

'06.6

'08.6

'10.6

'12.6

'14.6

'16.6

'18.6

'20.6

'22.6

-10
(period)47

4. Appendix

Appraisal Value by Property (as of June 30, 2022)

直接
還元利回り
NCF Cap
（%）

前期比
（pt）

DCF
割引率
（%）

前期比
（pt）

DCF
最終還元
利回り
（%）

+400

3.3

-0.1

3.1

-0.1

3.5

-0.1

14,701+598

Tachikawa Business Center Bldg.

4,640

-110

3.7

-0.1

3.5

-0.1

3.9

-0.1

2,388

+911

Rise Arena Bldg.

18,600

3,110

+70

3.6

-0.1

3.4

-0.1

3.7

-0.1

2,105

+1,004

Yume-ooka Office Tower

7,430

4,510

+130

3.4

-0.1

3.1

-0.1

3.5

-0.1

2,418

+2,091

Olinas Tower

評価額

前期比

（百万円）

（百万円）

Kanematsu Bldg.

15,300Kanematsu Bldg. Annex

3,300

JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.

物件名

前期比
簿価
（pt） （百万円）

含み
損益

物件名

（百万円）

直接
還元利回り
NCF Cap
（%）

前期比
（pt）

DCF
割引率
（%）

前期比
（pt）

DCF
最終還元
利回り
（%）

前期比
（pt）

+20

3.9

-0.1

3.6

-0.1

4.0

-0.1

2,876

+1,763

+900

3.6

-0.1

3.3

-0.1

3.7

-0.1

12,427+6,172

+120

3.9

-0.1

3.6

-0.1

4.0

-0.1

5,113

+2,316

41,300+1,300

3.4

-0.1

3.1

-0.1

3.5

-0.1

25,703+15,596

評価額

前期比

（百万円）

（百万円）

簿価
（百万円）

含み
損益
（百万円）

JPR Crest Takebashi Bldg.

3,790

-

3.7

-0.1

3.5

-0.1

3.9

-0.1

3,279

+510

JPR Yokohama Bldg.

10,400

+200

3.8

-0.1

3.6

-0.1

3.9

-0.1

7,433

+2,966

MS Shibaura Bldg.

16,300

+400

3.9

-0.1

3.6

-0.1

4.0

-0.1

10,720+5,579Omiya Prime East

11,000

+600

4.0

-0.2

3.8

-0.2

4.1

-0.2

5,588

+5,411

Gotanda First Bldg.

4,270

-

3.7

0.0

3.2

-0.2

3.6

-0.2

2,949

+1,320

Sencity Bldg.

15,100

+300

4.1

-0.1

3.8

-0.1

4.2

-0.1

13,995+1,104JPR Ichigaya Bldg.

4,940

+90

3.6

-0.1

3.4

-0.1

3.8

-0.1

5,253

-313

Tanashi ASTA

11,200

+200

5.2

0.0

5.1

0.0

5.4

0.0

6,941

+4,258Oval Court Ohsaki Mark West

5,160

+50

3.8

-0.1

3.6

-0.1

4.0

-0.1

2,712

+2,447Cupo-la Main Bldg.

2,970

+80

4.8

-0.1

4.6

-0.1

5.0

-0.1

1,561

+1,408

Shinjuku Square Tower

14,900

+100

3.7

0.0

3.5

0.0

3.9

0.0

12,891+2,008JPR Musashikosugi Bldg.

5,500

-

4.7

0.0

4.5

0.0

4.9

0.0

7,110

-1,610BYGS Shinjuku Bldg.

19,400

-200

3.5

-0.1

3.3

-0.1

3.7

-0.1

15,515+3,884

Musashiurawa Shopping Square

4,280

-10

4.9

0.0

4.8

0.0

5.1

0.0

3,461

+818

804

+21

4.4

-0.1

4.2

-0.1

4.6

-0.1

566

+237

Kawasaki Dice Bldg.

13,900

-200

4.1

0.0

4.0

0.0

4.3

0.0

12,928+971

Shinjuku Center Bldg.

19,500

+500

3.0

-0.1

2.7

-0.1

3.1

-0.1

22,236-2,736FUNDES Ueno

4,000

-

3.7

0.0

3.4

0.0

3.9

0.0

3,740

+259

Minami Azabu Bldg.

3,420

+90

3.6

-0.1

3.4

-0.1

3.7

-0.1

3,791

-371

Niigata Ekinan Center Bldg.

2,170

-100

5.4

-0.2

5.4

-0.2

5.6

-0.2

1,533

+636

Shinagawa Canal Bldg.

2,360

-

3.7

-0.1

3.4

-0.1

3.8

-0.1

1,883

+476

JPR Naha Bldg.

2,300

+60

4.8

-0.1

4.8

-0.1

5.0

-0.1

1,635

+664

Rokubancho Bldg.

3,730

+100

3.8

-0.1

3.5

-0.1

3.8

-0.1

2,893

+836

Sompo Japan Sendai Bldg.

4,960

+90

4.7

-0.1

4.4

-0.1

4.8

-0.1

2,253

+2,706

JPR Harajuku Bldg.

10,500

-

3.7

0.0

3.5

0.0

3.9

0.0

8,762

+1,737

Sompo Japan Wakayama Bldg.

1,650

+10

6.0

-0.1

5.8

-0.1

6.3

-0.1

1,315

+334

JPR Nihonbashi-horidome Bldg.

6,820

+10

4.2

0.0

4.0

0.0

4.4

0.0

4,839

+1,980Tenjin 121 Bldg.

4,050

+110

4.0

-0.1

3.6

-0.1

4.1

-0.1

1,978

+2,071JPR Sendagaya Bldg.

11,900

-

3.8

0.0

3.6

0.0

4.0

0.0

14,646-2,746

JPR Dojima Bldg.

3,940

+120

3.9

-0.1

3.7

-0.1

4.0

-0.1

2,073

+1,866

Ginza Sanwa Bldg.

3,730

-10

3.0

0.0

2.7

0.0

3.1

0.0

3,673

+56

JPR Nagoya Fushimi Bldg.

3,480

+40

4.8

0.0

4.4

0.0

4.8

0.0

3,781

-301

The Otemachi Tower (Land with Leasehold Interest)

54,600+2,100

2.5

-0.1

2.4

-0.1

2.6

-0.1

38,388+16,211

Yakuin Business Garden

23,000

+800

3.8

-0.1

3.6

-0.1

3.9

-0.1

9,821

+13,178

Science Plaza - Yonbancho Plaza

3,480

+70

3.6

-0.1

3.2

-0.1

3.7

-0.1

2,776

+703

JPR Shinsaibashi Bldg.

4,630

-70

3.7

0.0

3.4

0.0

3.8

0.0

5,279

-649

Shibadaimon Center Bldg.

6,660

+130

3.3

-0.1

3.0

-0.1

3.4

-0.1

4,154

+2,505

JPR Shinsaibashi West

4,720

+200

3.9

-0.1

3.7

-0.1

4.0

-0.1

3,907

+812

Tokyo Square Garden

21,500

+700

2.5

-0.1

2.3

-0.1

2.7

-0.1

18,319+3,180

GRAND FRONT OSAKA(Umekita Plaza and South Building)

12,300

-

3.2

0.0

3.0

0.0

3.3

0.0

11,837+462

JPR Kojimachi Bldg.

6,840

-

3.0

-0.1

2.8

-0.1

3.1

-0.1

5,846

+993

GRAND FRONT OSAKA(North Building)

10,100

-

3.3

0.0

3.1

0.0

3.4

0.0

9,537

+562

Otemachi Financial City North Tower

13,000

+300

2.3

-0.1

2.0

-0.1

2.4

-0.1

11,513+1,486

JPR Umeda Loft Bldg.

4,230

+30

3.8

0.0

3.5

0.0

4.0

0.0

3,727

+502

Tokyo Tatemono Higashi Shibuya Bldg.

12,100

-

3.6

-

3.7

-

3.8

-

11,475+624

Housing Design Center Kobe

7,310

+20

5.4

0.0

5.2

0.0

5.5

0.0

6,040

+1,269JPR Shibuya Tower Records Bldg.

JPR Chayamachi Bldg.

8,440

-40

3.3

0.0

3.0

0.0

3.4

0.0

5,997

+2,442

Across Shinkawa Bldg. Annex

14,200

-

3.4

0.0

3.2

0.0

3.6

0.0

11,411+2,788JPR Jingumae 432

4,260

-10

2.9

0.0

3.0

0.0

3.1

0.0

4,256

+3

Shinjuku Sanchome East Bldg.

2,720

-

3.2

0.0

2.7

0.0

3.4

0.0

2,518

+201

Total

593,184+10,321465,129+128,054

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

3,360

+30

2.9

0.0

2.5

0.0

3.1

0.0

3,259

+100

Central Tokyo

314,954+4,961

265,454+49,499

JPR Ginza Namiki-dori Bldg.

11,100

-

2.8

0.0

2.5

0.0

2.8

0.0

10,140+959

Greater Tokyo

180,950+4,090128,952+51,997

FUNDES Suidoubashi

3,390

-

3.5

0.0

3.3

0.0

3.7

0.0

3,163

+226

Other Cities

97,280+1,27070,721+26,558

Arca East

6,730

-340

3.6

-0.1

3.3

-0.1

3.7

-0.1

4,149

+2,580JPR Chiba Bldg.

1,910

+80

5.2

-0.1

5.0

-0.1

5.4

-0.1

2,175

-265

JPR Yokohama Nihon Odori Bldg.

2,450

+100

4.8

-0.1

4.6

-0.1

5.0

-0.1

2,341

+108

Shinyokohama 2nd Center Bldg.

2,600

+140

4.3

-0.1

4.1

-0.1

4.4

-0.1

1,386

+1,213

Kawaguchi Center Bldg.

11,100

+500

4.5

-0.1

4.2

-0.1

4.6

-0.1

7,176

+3,923

JPR Ueno East Bldg.

5,840

+100

3.5

-0.1

3.3

-0.1

3.6

-0.1

2,840

+2,999

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate that serve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.
3. Impact of sold properties is not included in calculation of change in appraisal value from previous period.

48

4. Appendix

JPR’s Commitment to Sustainability (1)Actively implementing sustainability initiatives for diverse stakeholders based on Sustainability Policy

Sustainability policy

Major stakeholder engagement➢ Initiatives on Behalf of Tenants• Proactively disclosing information
including ESG-related information• Pursuing dialogue with investors• Maintaining a robust governance system• Strengthening the risk
management structure

We will work with integrity and responsibility in responding to tenants,
and endeavor to provide them with new and distinct values as well as
enhancing their satisfaction.
➢ Initiatives on Behalf of the Environment

Investors

Tenants/
Local
communities

Employees

Environment/
Business
partners

Recognizing the importance of addressing environmental issues, we will
aim to reduce the environmental load by managing the assets owned by
JPR.
•

•

•

We will promote energy saving and the reduction of greenhouse gas
emissions.

• Developing professionals• Promoting physical and mental
health and work-life balance• Promoting diversity• Developing environments that allows
employees to fulfil their potential

We will endeavor for the effective use of water resources and work on
the "3Rs" (reuse, reduce and recycle) of waste.
We will strive to proactively disclose information on environmental
issues.

➢ Initiatives on Behalf of the Employees• Acquiring environmental
certifications and improving
evaluations• Reducing CO2 emissions and waste• Implementing energy-saving
construction work
• Thoroughly implementing humanrights due diligence

Active disclosure of sustainability information➢ Initiatives on Behalf of Local Communities
We will work to coordinate with local communities by managing theassets owned by JPR, in an effort to contribute to enhancing the brandvalue of the entire area in which such assets are located.

• Improving tenant satisfaction• Creating safe, secure and pleasantworking environments• Building resilience• Contributing to local communities

Periodic issuance of Sustainability ReportCreation of ESG page on JPR website• Disclosure of quantitative information such as environment-related data
and TRIM employee data••

We will respect each of our employees to realize an employee-friendly
workplace, helping them to enhance their skills in their specialties.
➢ Initiatives on Behalf of the Society
We will abide by laws and regulations as well as the rules of society, andwill conduct business operations with a focus on transparency andobjectivity while holding on to our high moral standards.

49

4. Appendix

JPR’s Commitment to Sustainability (2)Working on the implementation of sustainability measures and the enhancement of ESG management to solve identified
material issues (materialities)
Materialities of JPR and TRIM and strategic targets
Materialities
Portfolio greening

Strategies
Raising the ratio of properties with green
certification

2030 target

SDGs

Certification acquisition rate of 80% or more (4star/"A" rating or higher)

Improving the environmental rating of realestateAction on climate change

Reduction of CO2

Net zero CO2 emissions by 2050
Achieving 30% reduction in CO2 per floor area(compared with the 2017 level)

Efficient use of water resources

Achieving 10% reduction in water use per floorarea (compared with the 2017 level)

Strengthening climate change risk
management

Building industry-leading climate change risk
response capabilities

Working with tenants to address climatechangeExpansion of green lease agreement

Improving tenant satisfaction with safety,
security and comfort

Improving satisfaction by providing tangible
and intangible services (safety, security andcomfort)

Improving overall tenant satisfaction (safety,
security and comfort)

Creating a rewarding workplaceenvironment

Strengthening human resources throughtraining and self-development support

Fostering professionals who support corporate
growthBuilding an efficient business structure

Improvement of business efficiency and process

Maintaining and improving physical and mental
healthRealization of physical, mental health and worklife balance

Creating a rewarding workplace environment

Providing an environment where each person canplay an active role

Implementation of transparent management
through active IR

Industry-leading information disclosure

Strengthening corporate governance

Active dialogue with investors
Promoting dialogue with individual investors

Improving overall strength of Sustainability
Promotion Framework

Obtaining industry-leading ESG valuation

Enhancing a strong corporate governance

Maintaining a strong corporate governance

Strengthening risk management

Industry-leading risk management504. Appendix

JPR’s Commitment to Sustainability (3)Declaration of Support for the TCFD Recommendations
Promoting sustainable operations based on recognition of the impact of climate change
Support for TCFD recommendations and scenario analysis◼

In May 2021, TRIM announced its support for the TCFD (Task Force on
Climate-related Financial Disclosures), which was established by Financial
Stability Board (FSB). Based on the four core pillars (governance,
strategy, risk management, and metrics and targets) of the TCFD
recommendations, TRIM conducted an analysis of climate change action
risks and opportunities.

(1) Identifying risks and opportunities
Type of risk/
opportunity
Transition risk

Physical risks

Opportunities

Risk that was identified

Time span

Level of Level ofimpact impact
1.5/2℃
4℃

Increase in operation costs resulting fromthe introduction of a carbon tax

Medium to long

High

High

Cost increase resulting from the increase ofenergy prices

Medium to long

Low

MiddleLoss of tenants due to a delay in taking
green building measures

Short, medium,and long

High

Low

Withdrawal of investors due to a delay intaking green building measures

Medium to long

High

Low

Increase in energy consumption attributed
to chronic temperature increase

Medium to long

MiddleMiddleIncrease in repair costs associated withwater damage risk

Short, medium,and long

High

High

Increase in rents for green buildings

Medium to long

High

Low

Cost reduction effect of energy conservation
and use of renewable energy

Medium to long

Low

Low

(2) Implementation of scenario analysis
1.5℃/2℃ scenarios

4°C scenario(A scenario in which laws andregulations are tightened
to control climate change)(A scenario in which natural disasters
grow serious because of delays
in addressing climate change)

Natural andImpact is less than under the 4°C
meteorological scenario
environment

Increase in rain and cloudbursts
Rising sea levels
Increase in tropical days (high is 30°C or
higher), decrease in ice days (low is 0 °C
or lower)

Government

Carbon tax introduced
Improvement of regulations for energy
conservation

Improvement of regulations for disaster
control measures (disaster control andmitigation)
Carbon tax not introduced

TenantFocus on environmental performance

Focus on disaster response capacity andsafetyInvestors andlenders

Increase in sustainable investments andloans
Increase in importance of environmental
certification

Focus on ability to respond to physicalrisks

Investment
corporations

Increase in responses to environmentrelated laws and regulations
Demand for properties with a strong
environmental performance

Measures against meteorological disasters,
responses for facilities
High demand for resilient properties(3) Risk management
i. Risk management
Climate change risks are integrated with risks related to operations andmanagement. They are monitored and managed through multiple verification
systems.
ii. Risk management process
TRIM monitors climate change risks and other risks twice a year, and the Risk
Management Committee deliberated these risks.

TRIM addresses climate change risks by classifying them into transition risks andphysical risks, and is also actively focusing on capturing new growth opportunities.
51

4. Appendix

Unitholders (as of June 30, 2022)■ Number of units by unitholder type

(997,178 units in total)

Individuals
Securities companies 33,910(3%)
30,362(3%)
Foreign investors
177,301(18%)

Other domestic corporation
83,281(8%)■ Top unitholders
Rank

Financial
institutions
672,324(67%)
Of which,
investment Trusts
incorporating JPR units
374,999
(38%)

Name

Number of
Share(%)
Owned Units

1

Custody Bank of Japan, Ltd. (Trust
Account)

280,532

28.1

2

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

177,01417.8

3The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)

45,311

4.5

4Tokyo Tatemono Co., Ltd.

29,3002.9

5Kawasaki Gakuen

25,000

2.5

6

Meiji Yasuda Life Insurance Company

24,000

2.4

7

STATE STREET BANK WEST CLIENTTREATY 505234

13,226

1.3

8SSBTC CLIENT OMNIBUS ACCOUNT

12,554

1.3

9

JP MORGAN CHASE BANK 385781

12,136

1.2

10 JP Morgan Securities Japan Co., Ltd.

11,945

1.2

631,018

63.3■ Number of unitholders by unitholder type(10,506 unitholders in total)
Foreign investors
283
(3%)

Securities companies
19(0%)

Other domestic corporation
210(2%)
Financial institutions
184(2%)
Individuals
9,810
(93%)

Total

52

4. Appendix

Investment Unit Price and Distribution per Unit

■ Changes in unit price(yen)

Nikkei stock average (indexation)
日経平均株価(指数化)JPR

600,000
400,000
200,000
0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6

'21/6

'22/6

(year/
month)

'18/6

'19/6

'20/6

'21/6

'22/6

(year/
month)■ Changes in JPR dividend yield(%)

10y
JGB yield
10年国債利回り

JPR

10.0
8.0
6.0
4.0
2.0
0.0
-2.0

'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

■ Changes in cash distribution per unit
6,912 6,873
5,738

6,081

6,671 6,370 6,411 6,509 6,873 6,996 6,671

7,122 7,092

6,933 6,770
5,680 5,611 5,876

6,430

6,093 6,031 6,006

6,588
6,150 6,351 6,419

22

25

6,756 7,048

7,213 7,223 7,245 7,326 7,380 7,493

7,595 7,750 7,657 7,550 7,800

31

37

3,731
2,545

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

23

24

26

27

28

29

30

32

33

34

35

36

38

39

40

41

(period)

1. Prepared by TRIM based on Refinitiv data.
2. Nikkei stock average (indexation) in Changes in Unit Price is calculated on the basis that June 14, 2002 = 200,000 yen.
3. JPR dividend yield is calculated by dividing the sum of dividend for the last two periods by daily unit price.

53

4. Appendix

Asset Manager■ Summary of asset manager■ Sponsors(as of June 30, 2022)(as of June 30, 2022)

Name

Tokyo Realty Investment Management, Inc.

Address

4-16 Yaesu 1-chome, Chuo-ku, Tokyo

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO

Yoshihiro Jozaki

Directors

7 (3 full-time and 4 part-time)

Number of Officers

48■ Organization chart(as of June 30, 2022)

Name

No. ofShareholding
seconded staff
ratiofrom sponsors

Tokyo Tatemono Co., Ltd.

75%

8

Yasuda Real Estate

10%－

Taisei Corporation

10%－

Meiji Yasuda Life Insurance Company

5%－■ Sponsors support

Shareholder’s Meeting
Auditors
Board of Directors
President & CEO
Investment Committee

Compliance Committee

No.

Summary of sponsors support

1

Personnel support through dispatching personnel to TRIM andother measures

2

Provision of know-how on real estate management in general,
including tenant leasing and technical support

3

Supply of properties and provision on information on property
acquisition

4

Fund procurement support including funding through debt
financeCompliance Office
Investment Management
Division
Research Grp.
Investment Grp.
Asset Management 1 Grp.
Asset Management 2 Grp.
Asset Management 3 Grp.

Financial Division

Financial Grp.
IR Grp.
Sustainability Grp.

Corporate Planning /Administration Division
Planning Grp.
GeneralAdministration Grp.
Fund Management& Accounting Grp.

Asset Engineering Grp.

54

4. Appendix

Large supply of offices■ Supply, absorption and vacancy rates inTokyo’s 23 wards■ Breakdown of office building supply by area and bysize (forecast)Supply will be concentratedin Tokyo’s 3 central wards(By area)

Supply (10 thousand sqm)
Absorption (10 thousand sqm)

2022

75

25

2023

75

25

Vacancy rate (%)
Average new supply
in 2022-2026: 88
Average new supply
in 1986-2021: 105

68

2024

179
161

32

2025

78

22

2026

75

25

(year)

3 central wards(%)

Other 20 wards

141
128

(By size)

119

119

97

Large supply in 2023 will be mostly officebuildings with GFA of 100,000 sqm or more
46

2022

96

54

85 86

85

74
69

79

2023

71

21

61
5.6

2024

48
3.2

4.0

2025

2.6
1.9

(year)

2017

2018

2019

75
76

24

-2

1.8

2016

25

2020

2021

2022

2023

2024

2025

2026

2026
(year)

94
100,000 sqm or more

6
Less than 100,000 sqm(%)

1. Source: Prepared by TRIM based on the 2022 Survey of Large Office Building Market Trends in Tokyo’s 23 Wards published on May 26, 2022.
2. Absorption refers to newly occupied space (Vacant space as of end of previous period + New supply － Vacant space as of end of current period).

55

4. Appendix

Office Property Leasing Market■ Changes in the supply and the vacancy rate of Tokyo CBDs
(tsubo)Supply(%)

Vacancy rate

14.5

600,000■ Changes in the average rent of Tokyo CBDs
(yen/tsubo)

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,00012.5

500,000

10.5
400,000

35,0008.5

300,000

6.5

200,000

25,0004.5

100,000

2.5

0

0.5
(year)

15,000

5,000
'10.6

'12.6

'14.6

'16.6

'18.6

'20.6

'22.6

(year/month)

1. Prepared by TRIM based on the office market information published by Miki Shoji Co., Ltd.

■ Monthly vacancy rates in Tokyo CBDs

■ Changes in the vacancy rate of Tokyo CBDs
(%)

(%)

9.0

Chiyoda Ward
Minato Ward
Shibuya Ward

Chuo Ward
Shinjuku Ward
Tokyo's Central 5 Wards

Class A Bldg.

Class B Bldg.

Class C Bldg.

12.0
10.0
8.0

7.0

6.0
5.0
4.0

2.0

3.0

0.0
'10.6

1.0
'21.07 '21.08 '21.09 '21.10 '21.11 '21.12 '22.1

'22.2

'22.3

1. Source: Prepared by TRIM based on data published by Miki Shoji Co., Ltd.

'22.4

'22.5

'22.6 (year/month)

'12.6

'14.6

'16.6

'18.6

'20.6

'22.6 (year/month)

1. Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and NLI Research Institute.
2. Please refer to glossary for definition of building classes.

56

4. Appendix

For-Sale Property Market■ Expected cap rate of office (major cities)(%)■ Expected cap rate of retail properties andeconomy hotel for lodging

Tokyo (Otemachi, Marunouchi)
Nagoya (around Nagoya Sta.)
Osaka (Midosuji)
Osaka (Umeda)
Fukuoka (Tenjin)(%)

Retail property (Ginza)
Retail property (Osaka)
Economy hotel for lodging (Tokyo)
Economy hotel for lodging (Osaka)

8.0

7.5

7.0
6.5

6.0
5.5
5.0
4.5
4.0

3.5

3.0

2.0

2.5

(year/month)(year/month)

1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute.

57

4. Appendix

Portfolio Map

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

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

SaitamaMusashiurawa
Prefecture

A-5

A-9
A-24
A-4

A-23

B-6

Chiyoda WardTokyo

A-1
A-2

A-26

B-8
A-13

Tachikawa

A-5

Harajuku

B-7

B-1

A-21

B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

A-6

Minato Ward

A-1

Kinshicho

B-14

Chiba

B-4

KawasakiB-5

Hamamatsucho

A-15

B-1

B-2

A-25

A-29

B-11

Musashikosugi

Chuo Ward

ShibuyaB-7

ShinagawaShinbashi

A-18

Chiba
Prefecture

B-3

Kawaguchi

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

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

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

Kanagawa Shin-Yokohama
Prefecture
Yokohama
B-12
B-3

TamachiB-10

Kamioka

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

A-6■Other Cities
GotandaShinagawa

A-7

A-16
A-10

OhsakiShinagawa Ward
A-1

Kanematsu Bldg.

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

Shibadaimon Center Bldg.

A-2

Kanematsu Bldg. Annex

A-14

Shinjuku Center Bldg.

A-25

A-3

JPR Ningyo-cho Bldg.

A-15

Minami Azabu Bldg.

A-26

Tokyo Square Garden

A-4

Shin-Kojimachi Bldg.

A-16

Shinagawa Canal Bldg.

A-27

JPR Kojimachi Bldg.

A-28

Otemachi Financial City North Tower

A-5

JPR Crest Takebashi Bldg.

A-29

Tokyo Tatemono Higashi Shibuya Bldg.

A-6

MS Shibaura Bldg.

A-18

JPR Harajuku Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-7

Gotanda First Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-3

JPR Jingumae 432

A-9

JPR Ichigaya Bldg.

A-21

JPR Sendagaya Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-10

Oval Court Ohsaki Mark West

A-22

Ginza Sanwa Bldg.

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-11

Shinjuku Square Tower

A-23

The Otemachi Tower

A-6

JPR Ginza Namiki-dori Bldg.

A-12

BYGS Shinjuku Bldg.

A-7

FUNDES Suidobashi

A-17

Rokubancho Bldg.

(Land with Leasehold Interest)

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi West

C-23

GRAND FRONT OSAKA (Umekita Plaza and South Bldg.)

C-24

GRAND FRONT OSAKA (North Bldg.)

C-1

JPR Umeda Loft Bldg.

C-5

JPR Chayamachi Bldg.
Sendai
NiigataC-14

Tenjin 121 Bldg.

C-20

Yakuin Business Garden
Kobe
Fukuoka

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

58

4. Appendix

Portfolio List (Central Tokyo)

A-1 Kanematsu Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

A-2 Kanematsu Bldg. Annex
16,276 million
yen
14,995 m2
100.0%
Kyobashi, Chuoku
2001.12
1993.2A-5 JPR Crest Takebashi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Address
Acquisition
Date
Completed4,000 million yen
4,790 m2
89.2%
Kandanishikicho,
Chiyoda-ku
2002.6
1999.93,500 million yen
28,575 m2
100.0%

Address
Acquisition
Date
Completed

Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,874 million yen
4,351 m2
100.0%
Kyobashi, Chuoku
2001.12
1993.2AcquisitionPrice
Total Floor
Space
Period-end
occupancyrate2004.6

Address

2001.6

Acquisition
Date
Completed

31,020 m2
100.0%
Minato-ku
2003.3
1988.2

176,607 m2
97.0%
Nishishinjuku,
Shinjuku-ku
2008.3
1979.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

Address
Acquisition
Date
Completed

A-4 Shin-Kojimachi Bldg.
2,100 million yen
4,117 m2
100.0%
Nihonbashiningyocho, Chuo-ku
2001.11
1989.12AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

14,966 million yen
78,796 m2 (entire
redevelopment
area)
94.6%
Nishishinjuku,
Shinjuku-ku‘04.7/’08.9/‘15.3/’15.101994.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,920 million yen
10,553 m2
100.0%
Nishigotanda,
Shinagawa-ku
2003.7
1989.73,760 million yen
4,570 m2
100.0%
Minamiazabu,
Minato-ku
2008.7
1992.6

Address
Acquisition
Date
Completed

2,420 million yen
5,152 m2
100.0%
Kojimachi,
Chiyoda-ku‘01.11/’02.11/’04.
11
1984.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

5,100 million yen
5,888 m2
90.9%
Kudanminami,
Chiyoda-ku
2004.5
1989.3

A-13 Across Shinkawa Bldg. Annex
15,121 million
yen
25,733 m2
98.4%
Shinjuku,
Shinjuku-ku‘04.11/’05.4/‘10.7
1985.4

A-16 Shinagawa Canal Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

A-9 JPR Ichigaya Bldg.

A-12 BYGS Shinjuku Bldg.

A-15 Minami Azabu Bldg.
21,000 million
yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

A-7 Gotanda First Bldg.
11,200 millionyen

A-11 Shinjuku Square Tower

Higashigotanda,
Shinagawa-ku

A-14 Shinjuku Center Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

Address

A-3 JPR Ningyo-cho Bldg.

A-6 MS Shibaura Bldg.

A-10 Oval Court Ohsaki Mark West
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

710 million yen
5,535 m2
100.0%
Shinkawa, Chuoku
2004.111994.6

A-17 Rokubancho Building
2,041 million yen
5,216 m2
100.0%
Konan, Minato-ku‘08.12/’19.3
2008.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed2,800 million yen
4,205 m2
100.0%
Rokubancho,
Chiyoda-ku
2009.12
1991.10

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

59

4. Appendix

Portfolio List (Central Tokyo)

A-18 JPR Harajuku Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

A-20 JPR Nihonbashi-horidome Building
8,400 million yen
6,466 m2
100.0%
Jingumae,
Shibuya-ku
2009.12
1989.3

A-23 The Otemachi Tower(Land with Leasehold Interest)
Acquisition
Price
Site area
Period-end
occupancy rate
Address
Acquisition
Date
Completed36,000 million
yen
11,034 m2
100.0%
Otemachi,Chiyoda-ku
2012.32014.4(Reference)

A-27 JPR Kojimachi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Address
Acquisition
Date
Completed

Address
Acquisition
Date
Completed

5,100 million yen
7,190 m2
100.0%
Nihonbashihorido
mecho, Chuo-ku
2010.3
2002.6

A-24 Science Plaza - Yonbancho Plaza
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,660 million yen
24,560 m2
98.3%
Yonbancho,
Chiyoda-ku
2013.12
1995.2

A-28 Otemachi Financial City North Tower
5,750 million yen
4,438 m2
83.2%
Kojimachi,
Chiyoda-ku
2019.6
1999.2A-3 JPR Jingumae 432
AcquisitionPrice
Total Floor
Space
Period-end
occupancyrate

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

11,400 million yen
239,769 m2(Including South Tower)

100.0%
Otemachi,Chiyoda-ku
2020.122012.10

A-4 Shinjuku Sanchome East Bldg.
4,275 million yen
1,066 m2
100.0%
Jingumae,
Shibuya-ku
2006.32006.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

2,740 million yen
24,617 m2
100.0%
Shinjuku,
Shinjuku-ku‘07.3/’08.4
2007.1

A-21 JPR Sendagaya Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

A-22 Ginza Sanwa Bldg.
15,050 million
yen7,683 m2
100.0%
Sendagaya,
Shibuya-ku
2010.52009.5

A-25 Shibadaimon Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Address
Acquisition
Date
Completed

4,213 million yen
11,419 m2
100.0%
Shibadaimon,
Minato-ku‘13.12/’14.7
1993.7

11,300
million yen
15,662 m2
79.6%
Higashi, Shibuyaku
2022.1
1993.5A-5 Yurakucho Ekimae Building(Yurakucho Itocia)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

3,400 million yen
8,851 m2
100.0%
Ginza, Chuo-ku
2011.8
1982.10

Aｰ26 Tokyo Square Garden

A-29 Tokyo Tatemono Higashi-Shibuya Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

18,400 million
yen112,645 m2
92.4%
Kyobashi, Chuoku‘17.2/’17.4
2013.2A-1 JPR Shibuya Tower Records Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed12,000 million
yen8,449 m2
100.0%
Jinnan, Shibuyaku
2003.6
1992.2A-6 JPR Ginza Namiki-dori Building
3,400 million yen
71,957 m2
100.0%
Yurakucho,
Chiyoda-ku
2008.8AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

10,100 million
yen
1,821 m2
100.0%
Ginza, Chuo-ku
2016.122008.6

2007.10

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

60

4. Appendix

Portfolio List (Central Tokyo and Greater Tokyo)

A-7 FUNDES Suidobashi
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-1 Arca East
3,250 million yen
1,477 m2
87.2%
Kandamisakicho,
Chiyoda-ku
2016.122015.7B-5 Shinyokohama 2nd Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

7,781 m2
94.3%
Yokohama,
Kanagawa

Address
Acquisition
Date
Completed‘02.9/’13.3
1991.834,281 m2
100.0%
Kinshi, Sumida-ku
2001.111997.3AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

91,280 m2
100.0%

Address

Higashiikebukuro,
Toshima-ku

Acquisition
Date
Completed‘07.3/’21.10
2007.1

8,100 million yen
28,420 m2
100.0%
Kawaguchi,
Saitama2004.2
1994.29,203 m2
65.0%
Saitama, Saitama
2013.32009.2B-3 JPR Yokohama Nihon Odori Bldg.
2,350 million yen
9,072 m2
95.3%
Chiba, Chiba
2001.12
1991.1

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

185,974 m2
100.0%
Yokohama,
Kanagawa
2007.7
1997.3AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

3,250 million yen
8,490 m2
100.0%
Matsugaya, Taitoku
2004.3

13,870 million
yen158,663 m2
95.0%
Chiba, Chiba
2020.3
1993.4

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Address
Acquisition
Date
Completed

2,927 million yen
9,146 m2
100.0%
Yokohama,
Kanagawa
2001.11
1989.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

3,188 million yen
14,706 m2
90.8%
Tachikawa, Tokyo‘05.9/’07.2
1994.12

1992.10

B-12 JPR Yokohama Bldg.
31,300 million yen
257,842 m2
92.5%
Taihei, Sumida-ku
2009.6
2006.2B-1 Tanashi ASTA
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate

B-8 Tachikawa Business Center Bldg.

B-11 Olinas Tower
6,510 million yen

B-14 Sencity Bldg.
6,090 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-7 JPR Ueno East Bldg.

B-10 Yume-ooka Office Tower
13,131 million yen

B-13 JPR Omiya Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

5,880 million yen

B-6 Kawaguchi Center Bldg.

1,490 million yen

B-9 Rise Arena Bldg.

B-2 JPR Chiba Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed7,000 million yen
8,772 m2
100.0%
Yokohama,
Kanagawa
2010.12
1981.5B-3 Cupo-la Main Bldg.
10,200 million
yen
80,675 m2
100.0%
Nishitokyo, Tokyo
2001.111995.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,100 million yen
48,321 m2
100.0%
Kawaguchi,
Saitama2006.32006.1

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

61

4. Appendix

Portfolio List (Greater Tokyo and Other Cities)

B-4 JPR Musashikosugi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-5 Musashiurawa Shopping Square
7,254 million yen
18,394 m2
100.0%
Kawasaki,Kanagawa
2006.91983.3C-1 Niigata Ekinan Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,140 million yen
19,950 m2
100.0%
Niigata, Niigata
2001.111996.328,930 m2
100.0%
Saitama, Saitama
2007.32005.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

2,810 million yen
8,690 m2
87.8%
Fukuoka, Fukuoka
2002.6
2000.75,430 million yen
5,303 m2
100.0%
Osaka, Osaka
2005.5
2003.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

1,560 million yen
5,780 m2
100.0%
Naha, Okinawa
2001.111991.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-7 FUNDES Ueno
15,080 million
yen
36,902 m2
98.4%
Kawasaki,Kanagawa
2007.4
2003.8AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

2,140 million yen
5,696 m2
100.0%
Osaka, Osaka
2004.1
1993.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

3,150 million yen
10,783 m2
99.9%
Sendai, Miyagi
2002.6
1997.123,750 million yen
7,738 m2
99.9%
Osaka, Osaka
2020.1
1986.93,800 million yen
2,235 m2
100.0%
Ueno, Taito-ku
2019.62017.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

1,670 million yen
6,715 m2
99.8%
Wakayama,
Wakayama
2002.6
1996.7

C-20 Yakuin Business Garden
4,137 million yen
10,201 m2
94.1%
Nagoya, Aichi
2005.3
1991.3C-23 GRAND FRONT OSAKA(Umekita Plaza and South Building)AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
CompletedC-13 Sompo Japan Wakayama Bldg.

C-19 JPR Nagoya Fushimi Bldg.

C-22 JPR Shinsaibashi West
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

B-6 Kawasaki Dice Bldg.

C-12 Sompo Japan Sendai Bldg.

C-17 JPR Dojima Bldg.

C-21 C-21 JPR Shinsaibashi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

4,335 million yen

C-9 JPR Naha Bldg.

C-14 Tenjin 121 Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

11,800 million
yen
10,226 m2
181,371 m2
90.4%
Osaka, Osaka
2021.12‘13.2/’13.3

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate
Address
Acquisition
Date
Completed

10,996 million yen
22,286 m2
99.9%
Fukuoka, Fukuoka
2012.82009.1

C-24 GRAND FRONT OSAKA (North Building)AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

9,500 million yen
290,030 m2
98.6%
Osaka, Osaka
2021.122013.2

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

62

4. Appendix

Portfolio List (Other Cities)

C-1 JPR Umeda Loft Bldg.*2
AcquisitionPrice
Total Floor
Space
Period-end
occupancyrate

C-4 Housing Design Center Kobe
3,900 million yen
17,897 m2
100.0%

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate

7,220 million yen
33,877 m2
100.0%

C-5 JPR Chayamachi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate

6,000 million yen
3,219 m2
100.0%

Address

Osaka, Osaka

Address

Kobe, Hyogo

Address

Osaka, Osaka

AcquisitionDate‘03.5/’03.7

AcquisitionDate

2005.9AcquisitionDate

2006.8Completed1990.4Completed1994.6

Completed1994.6

1. The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.
2. The acquisition price for JPR Umeda Loft Bldg. indicates the amount equivalent to the 30% quasi-co-ownership interest in the property held by JPR as of the end of the period under review, given that JPR sold 40% of the quasi-coownership interest of the trust beneficiary right in real estate in the property on December 24, 2021 and 30% of the quasi-co-ownership interest of the trust beneficiary right in real estate in the property on June 30, 2022.

63

4. Appendix

IR Mail Delivery Service

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

8955

Having expanded IR information by adding a variety of contents,
JPR provides information in a timely manner

Property Information• [Occupancy Rate] Data for each
property (Excel) updated monthly• [Property Data Library]
Property Data Book, Property Appraisal
Summary, Historical Data
• [Portfolio data]
Asset class, Area, Ratio of Properties by
Property Acquisition Channel, Ratio of
Tenant Occupancy

Overview of Property / Access Map• [Property Overview]
Basic Information, Management Status,
Major Characteristics• [Access Map]
Search function for routes from thenearest stations (applicable for mobile
phones)• Other than these, latest topics regarding
management status are posted at any
time

Information of ESG• ESG of JPR• Initiatives on behalf of theenvironment• Initiatives for Society• Corporate Governance Initiatives• Sustainability report• GRI Standards Content Index
Extensive ESG related information
Regularly announce updated data64

4. Appendix

Term

Glossary

Meaning

Acquisition Price

The sales price (not including acquisition costs, fixed property taxes and consumption taxes)
stated in the sales agreement concerning acquisition of a property owned by JPR (hereinafterreferred to as the “owned properties”) or a property to be acquired by JPR.

Asset size

The asset size refers to the total amount of the acquisition prices of the owned properties

Investment ratio

The investment ratio refers to the ratio of the acquisition price of relevant properties owned by
JPR to the total acquisition price of its portfolio.

Occupancy rate
based on concluded
contracts

Total leased space / total leasable space
When simply stated as occupancy rate, it represents the occupancy rate based on concluded
contracts. When occupancy rate for each fiscal period is indicated, it represents the averageoccupancy rate as of the end of each month that belongs to the relevant fiscal period (period
average of occupancy rate at end of month). Furthermore, it may be described as “averageoccupancy rate” in order to distinguish it from “period-end occupancy rate.

Occupancy rate
based on generated
rents(Total leased space – total leased space during rent-free periods) / total leasable space

Average unit rent

Total monthly rent / total leased space
Calculated based on the monthly rents (including common charges) indicated in the lease
contracts with tenants; for certain properties, the figure includes common charges, etc.
received by master lessees without being recorded as JPR’s revenue

Term

Meaning
The definitions of building classes used in “Ratio by grade/asset class“ on page 12 is as follows,which TRIM sets.
Target area: Tokyo’s 23 ward
Class S: Comprehensive consideration from Bldg. scale, location, Bldg. age, etc. of the following
Class AClass A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or moreClass B: Floor size of 200 tsubo or moreClass C: Floor size of 100 tsubo or more but less than 200 tsubo

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and“Changes in the vacancy rate of Tokyo CBDs” on page 56 are as follows, which Sanko Estate Co.,
Ltd. and NLI Research Institute sets.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage
of office buildings in surrounding wards (Gotanda/Osaki, Kita-shinagawa/Higashi-shinagawa,Yushima/Hongo/Koraku, Meguro-ku)
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age less than
15 years
Class B: Floor size of 200 tsubo or more, not applicable of A class building (including of building
except for A class of age more over 15 years)
Class C: Floor size of 100 tsubo or more but less than 200 tsubo

Properties acquired
using sponsor
pipelines

Properties acquired using sponsor pipelines refer to properties acquired from sponsors, etc. andproperties acquired based on information provided by sponsors. Sponsors, etc. represent thesponsor companies of JPR, their affiliated companies and special purpose companies (SPCs) inwhich the sponsors have made equity investment.

Ratio ofincrease/decrease
on rent revision

Rate of rent revision indicates the sum total of monthly rent after revision minus monthly rent
before revision upon contract renewal with rent revision (including neither upward or down
revision of rent) in each fiscal period, divided by monthly rent before revision.

Rate of tenant
replacement

Rate of tenant replacement indicates the sum total of monthly rent after tenant replacement
minus monthly rent before tenant replacement in each fiscal period, divided by monthly rent
before tenant replacement.

NOI yield

Rent revision

Rent revision indicates the sum total of monthly rent after revision minus monthly rent before
revision upon contract renewal with rent revision in each fiscal period. Upward revision indicates
only the amount of the upward revision and downward revision indicates only the amount of
the downward revision.

(Rental revenue - expenses related to rent business + depreciation) / acquisition price (bookvalue or market value, depending on the case) NOI yield is calculated using the above formula,by dividing acquisition price (book value or market value, depending on the case) in the formulaby 365 days and multiplying it by the number of business days of the relevant fiscal period. The
same also applies to "After depreciation yield" below.
(Rental revenue - real estate - expenses related to rent business) / book value

Tenant replacement

Tenant replacement indicates the sum total of monthly rent after tenant replacement minus
monthly rent before tenant replacement in each fiscal period. Upward revision (tenant
replacement) indicates only the increase in rent upon tenant replacement and downward
revision (tenant replacement) indicates only the decrease in rent upon tenant replacement.

After-depreciation
yield
Number of tenants

Rent gap

The rent gap for a month refers to, in lease contracts due for renewal during the four periods
from the period ending in December 2022, the ratio obtained by subtracting the total difference
between the lower limit of rent in the market range and the existing rent that is lower than thelower limit of rent in the market range from the total difference between the upper limit of rentin the market range and the existing rent (excluding new contracts, etc.) that exceeds theupper limit of rent in the market range and dividing that monthly difference by the monthly rent
for the month in question.

The number of tenants counts the parties with whom JPR has concluded lease contracts for thebuilding floors. When a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted inplural.

Ratio of long-term,
fixed interest ratedebts

Long-term interest-bearing debts with fixed interests / total interest-bearing debts

Average maturity

Weighted average calculated by dividing the remaining periods to the repayment dates andredemption dates of borrowings and investment corporation bonds at the end of each fiscal
period by the balance of respective borrowings and investment corporation bonds at the end ofeach fiscal period For borrowings with scheduled repayment in installments, the weighted
average of the remaining period to the scheduled repayment dates of each installment payment
in accordance with the relevant repayment amount

Average debt cost

(Sum total of interest expenses, interest expenses for investment corporation bonds, borrowingrelated expenses (excluding expenses related to early repayment of debts and expenses related
to the commitment line agreement), amortization of investment corporation bond issuance costs
and investment corporation bond administration expenses incurred in each fiscal period), divided
by the business days of the relevant fiscal period or the said period, and annualized bymultiplying by 365 days / average balance of debts and investment corporation bonds for eachfiscal period or for the said period

LTVInterest bearing debts / total assets at end of period (based on book value)
There are other methods for calculating LTV.LTV (based on valuation) = Interest bearing debt /(total assets at end of period + unrealized gains or losses from valuation) (based on market
value)
Unrealized gains or losses from valuation refer to the difference between appraisal value andbook value.
Based on book value unless otherwise specified.

Tokyo/ Other cities“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.
・ Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
・ Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama
Prefectures

Ratio of unrealized
gains or losses(Appraisal value – book value) / book value

Cap rate

Capitalization rate by the direct capitalization method Direct capitalization method is one of themethods to calculate the value estimated by income approach (a method to estimate the valueof 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 by using the capitalization rate.

65

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking statements
are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty Investment Management, Inc.
(TRIM) based on information currently available, and are therefore not guarantees of future performance. Actual
results may differ materially from those in the forward-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 is not intended for the purpose of offering or
soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.

• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.

66