Forty-Fourth Fiscal Period Semi-Annual Report
July 1, 2023 − December 31, 2023

Japan Prime Realty Investment Corporation

Japan Prime Realty Investment Corporation

We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Also, we would like to pray for the repose of the souls of those who lost their lives in the 2024
Noto Peninsula Earthquake, and extend our deepest sympathies to the people affected by thedisaster.
Having settled the 44th fiscal period (July 1, 2023 – December 31, 2023), we would like to reporton the performance results.
Although there were concerns about the impact of the completion of many large-scale officebuildings last year, there was a recovery in office demand against the backdrop of the increase inattendance rate resulting from the normalization of socio-economic activities as well as strong
corporate performance, and the vacancy rate in Tokyo declined moderately.
Under such circumstances, JPR continues to conduct stable operation, and the averageoccupancy rate for the 44th fiscal period was 98.4% (+0.8% from the previous fiscal period).
Distribution per unit was 7,600 yen, the same amount as the initial forecast. In the next fiscal
period onwards, JPR plans to secure a certain level of operational results by achieving stable
operation and acquiring new properties as well as utilizing gain on sale resulting from strategic
asset replacements and abundant internal reserves.
Going forward, while continuously paying close attention to the trend of office market andfinancial environment, we will flexibly respond to changes in the business environment andendeavor achieving appropriate asset management to grasp new opportunities for growth.
We ask you, our unitholders, to extend us continued support of our operations.

Portfolio Management StatusItem43rd Period
ended
Jun. 2023
Results

Operating revenue

18,173

17,411

-762

-4.2%

Profit from leasing business

8,981

9,096

115

1.3%

(million yen)(million yen)

44th Period
Changeended
Dec. 2023
Rate of
ChangeResultschangeOperating income

8,859

8,151

-707

-8.0%

Ordinary income

8,099

7,357

-741

-9.2%

Net income

8,098

7,356

-741

-9.2%

(million yen)(million yen)(million yen)

Distribution per unit
(yen)

7,600

7,600

0

1

0.0%

Operating revenue decreased due to the absence ofgain on sale of properties recorded in the previous
fiscal year (881 million yen).

Profit from leasing business increased due to theprogress in leasing and improvement of utilities
income and expenses.

Due to the increase in profit from leasing business,
net income increased by 97 million yen compared with
the initial forecast (7,259 million yen).

Distribution per unit came to 7,600 yen (unchanged
from the previous fiscal period), the same amount as
the initial forecast.

Japan Prime Realty Investment Corporation► Nakano Central Park East (acquired on March 1, 2024)
The property is a high-spec building with a seismic isolation structure which is a five-minute walk from Nakano
Station on the JR and Tokyo Metro lines and developed together with “Nakano Central Park South” by Tokyo
Tatemono, the sponsor. A new station building of Nakano Station is scheduled to be completed in 2026, andconvenience is expected to further improve as a new ticket gate will be established and a pedestrian deck will be
developed on the north side of the station.

Acquisition priceNakano Central Park East

WasedaUniversity
International
Nogata Waseda-doriCommunity Police Station
Plaza
NAKANO
NakanoJunior High School
Tokyo
Metropolitan Nogata Courthouse

NakanoShikinomori Park

NakanoCentral Park South

Nakano Shikinomachi

Nakano Ward
OfficeTotal leasable floor space

13,523.68 m2

Nakano-doriMeiji University
Nakano Campus

30,100 million yen

NAKANOBROADWAY

Police Hospital

Teikyo Heisei University
Nakano Campus

28,800 million yen
Appraisal value

Building age

12 years
NOI yield

North
New North Exit
Exit Station Station
SquareSquare3.2%
Occupancy rate

Nakano Sta.

JR Chuo・Sobu Line

92.8%

Initiatives on Sustainability
Topic

Recognition by External Bodies

Received the “Good Action Award
Governance Category” in ARES ESG
AWARD 2023 for J-REITs, which
was established by the Association
for Real Estate Securitization.

GRESB Real Estate Assessment

CDP Climate Change Program

5 StarsA

Five consecutive
years

Obtained thehighest rating

MSCI ESG Rating (Note)(Note) JPR’s use of data produced by MSCI ESG
Research LLC or its affiliates (“MSCI”) and
JPR’s use of MSCI logos, trademarks, service
marks or index names do not constitute asponsorship, guarantee, recommendation, or
promotion of JPR by MSCI. MSCI’s services
and data are the property of MSCI or the entity
providing such information and are provided“AS IS” without warranty of any kind. MSCI’s
names and logos are trademarks or service marksof MSCI.

[Details of Award]
We were awarded for inviting external experts to the
Sustainability Committee, Investment Committee,
Risk Management Committee and Compliance
Committee. We were evaluated for making such
effort at multiple committees, while it is not easy to
select appropriate candidates who can understand
J-REITs and give advice.

2

Japan Prime Realty Investment Corporation

Environment• Review of the target of environmental certification acquisition rate
We expect to achieve the 2030 target of “environmental certification acquisition rate of
80% or more (4-star/“A” rating or higher)” ahead of schedule, and have reviewed the2030 target and set a new target for 2050.

▶

Ratio of properties with environmental
certifications

（%）

100
80

Before change

After change

2030 target
Certification acquisition rate of
80% or more
(4-star/“A” rating or higher)

2030 target
Certification acquisition rate of 90% or more
2050 target
Certification acquisition rate of 100%
(4-star/“A” rating or higher)

70.5

60

77.4

49.3
40.2

40
0

2020

2021

2022

2023

Social• We are promoting the improvement of recycling rates byconducting trainings based on the theme of “waste” forproperty managers (PM) and local building managers (BM).
• Initiatives for TRIM’s employees
The following diversity-related trainings were held three times infiscal 2023 to improve literacy.
• Diversity training (all employees including officers)• Career design training (female employees)• Diversity management training (officers/managers)

Governance

PM/BM training

Diversity management training

For details on our sustainability• We are promoting communication with investors byconducting IR focused on sustainability.

initiatives, please visit our website.

• Implementation status of compliance trainings in fiscal 2023
Focus themes: Interested party transactions, legal compliance, etc.
/Number of trainings held: 10

https://www.jpr-reit.co.jp/en/sustainability/index.html

3Asset Management ReportJapan Prime Realty Investment Corporation

1.1.Overview
AssetManagement
Management
Overview ofof Asset(1)
andOther
OtherManagement
Management
Data(1)Trends
TrendsininOperating
Operating Results
Results and
Data

2.

Operating Revenue
Rent revenue – real estate

Million yen

40th Fiscal
Period(Jul. 1, 2021 Dec. 31, 2021)
18,253

Million yen

16,382

17,01917,392

17,291Gain on sale of real estate

Million yen

1,870

1,338

1,347

881

－

Million yen

9,626

9,014

9,466

9,314

9,259

Million yen

7,731

7,946

8,199

8,310

8,315

Million yen

8,626

9,343

9,273

8,859

8,151

Million yen

7,893

8,607

8,469

8,099

7,357

Million yen

7,892

8,607

8,469

8,098

7,356

Million yen

495,615

507,005

507,655

510,069

510,802

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Financial Position

Operating Performance

Fiscal Period

Operating Expenses
Expenses related to rent business
Operating Income
Ordinary Income
Net Income
Total Assets(Period-on-period variation)
Interest-bearing Debts
Total Unitholders’ Equity(Period-on-period variation)
Unitholders’ Capital
Total Cash Distributions
Dividend payout ratio
Number of Units Outstanding
Total Unitholders’ Equity per Unit
Cash Distribution per Unit
Distribution amountExceeding profit distribution amount
Ordinary Income on Total Assets (Note 1)
Annualized (Note 10)
Net Income on Total Unitholders’Equity (Note 2)
Annualized (Note 10)
Total unitholders’ equity at
beginning of period
Unitholders’ Equity Ratio at End of
Period (Note 3)(Period-on-period variation)
Interest-bearing Debts to Total Assets at
End of Period (Note 4)
DSCR (Note 5)
Net income before interest andamortization (Note 6)
Interest expenses
NOI from Leasing (Note 7)
Annualized NOI yield(Notes 9 and 10)
NCF from Leasing (Note 8)
Annualized NCF yield(Notes 9 and 10)
Investment Properties Owned (Note 11)
Number of Tenants
Total Leasable Floor Space (Note 12)
Occupancy Rate

Unit

%

41st Fiscal
Period(Jan. 1, 2022 Jun. 30, 2022)
18,35742nd Fiscal
Period(Jul. 1, 2022 Dec. 31, 2022)
18,73943rd Fiscal
Period(Jan. 1, 2023 Jun. 30, 2023)
18,17344th Fiscal
Period(Jul. 1, 2023 Dec. 31, 2023)
17,411
17,411(+2.3)(+2.3)(+0.1)(+0.5)(+0.1)

Million yen

206,900

202,900

202,900

205,400

205,400

Million yen

257,649

272,912273,603

273,974

273,752(+0.2)(+5.9)(+0.3)(+0.1)(-0.1)

Million yen

247,860

261,751

261,751

261,751

261,751

Million yen

7,234

7,777

7,728

7,578

7,578

%

91.6

90.3

91.2

93.5

103.0

Units

958,250

997,178

997,178

997,178

997,178

Yen

268,875

273,684

274,378

274,749

274,527

Yen

7,550

7,800

7,750

7,600

7,600

Yen

7,550

7,800

7,750

7,600

7,600

Yen

–

–

–

–

–

%

1.6

1.7

1.7

1.6

1.4

%

3.2

3.5

3.3

3.2

2.9

%

3.1

3.2

3.1

3.0

2.7

%

6.1

6.5

6.1

6.0

5.3

257,093257,649

272,912273,603

273,974

%

52.0

53.8

53.9

53.7

53.6

pt

(-1.1)(+1.8)(+0.1)(-0.2)(-0.1)

%

41.7

40.0

40.0

40.3

40.2

Times

13.8

14.1

13.8

13.8

13.9

Million yen

9,708

10,026

10,1209,984

10,143%

Million yen

Million yen

701

710

731

722

728

Million yen

10,77911,118

11,24811,025

11,153

%

4.3

4.5

4.5

4.4

4.5

Million yen

9,177

9,737

9,745

9,571

9,125

%

3.7

4.0

3.9

3.9

3.6

66

67

65

67

67

1,134

1,171

1,180

1,224

1,236

m2

500,628.05

502,889.81

494,503.72

497,600.56

497,252.42

%

97.3

97.5

97.6

98.1

98.7

(Note 1) Ordinary income / (total assets at beginning of period + total assets at end of period) / 2(Note 2) Net income / (total unitholders’ equity at beginning of period + total unitholders’ equity at end of period) / 2(Note 3) Total unitholders’ equity at end of period / total assets at end of period x 100(Note 4) Interest-bearing debts at end of period / total assets at end of period x 100(Note 5) Net income before interest and amortization / interest expenses (including interest expenses on investment corporation bonds)(Note 6) Income before income taxes - gain/loss on sale of real estate - gain/loss on exchange of real estate + extraordinary loss + interest expenses (including interest
expenses on investment corporation bonds) + depreciation(Note 7) (Real estate rental revenues - real estate rental expenses) + depreciation(Note 8) NOI from leasing - capital expenditures

41

Asset Management ReportJapan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (40th fiscal period: ¥494.23 billion, 41st fiscal period: ¥496.18 billion, 42nd fiscal period: ¥495.60 billion,
43rd fiscal period: ¥501.04 billion and 44th fiscal period: ¥497.04 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 40th fiscal period: 184 days, 41st fiscal period: 181 days,
42nd fiscal period: 184 days, 43rd fiscal period: 181 days and 44th fiscal period: 184 days
(Note 11) Properties acquired at multiple times are calculated as one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded down to the first decimal place).

44thFiscal
FiscalPeriod
PeriodAsset
Asset Management
Management(2)(2)44th

3.

1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 997,178 units as of the end of the 44th fiscal period (December 31, 2023). JPR has assigned the asset management of its
portfolio to Tokyo Realty Investment Management, Inc. (hereafter, the Asset Manager), through which JPR aims to maximize
unitholder value by efficiently managing the portfolio primarily comprising office properties and retail properties.
2) Management Environment
During the 44th fiscal period, the Japanese economy remained strong against the backdrop of the increase in domestic demand
despite a slight weakness in overseas economies. On the demand side, consumer spending stayed on a solid note despite rising
general prices, and capital investment also showed a recovery trend. In terms of supply, although the recovery of overseas demandis sluggish, domestic production activities are showing a steady movement. Moreover, corporate earnings demonstrated recovery
both in manufacturing industries and the non-manufacturing sector. However, labor shortage is intensifying in a wide range ofindustries, raising concerns about the impact on the entire economy.
The Office Property Leasing Market
In the office property leasing market, the needs of tenants to relocate for expansion and expand office spaces in the same buildings
are gradually recovering due to strong corporate performance and the increasing attendance rate, and the vacancy rate in central
Tokyo is declining moderately. There are also some areas where average rent turned to rise. Similar trends are observed in Greater
Tokyo and other cities.
The Retail Property Leasing Market
At urban retail properties which JPR targets for investment, although the impact of rising costs, which are caused by rising generalprices, and labor shortages was seen in some areas, sales are on a recovery trend with an increase in the number of customers
visiting stores due to the recovery in the flow of people and the increase in demand from inbound foreign tourists.
The For-Sale Real Estate Market
Active real estate transactions continue to take place in Japan against the backdrop of relatively low interest rates among otherfactors. Close attention must continuously be paid, however, to how interest rate trends and the foreign exchange market may affectthe market conditions going forward. For office properties that are major targets of JPR for investment, blue-chip properties are in
short supply while investors still show a strong appetite to acquire them. Thus, with low yield transactions continuing to prevail,the acquisition environment remains harsh. Accordingly, investors continue to look for ways to effectively acquire properties, suchas by diversifying the target assets for investment and conducting asset replacement.
In addition, amid the ongoing normalization of socio-economic activities, domestic demand centered on consumer spending as well
as demand from inbound foreign tourists are on a recovery trend, and transactions of hotels for which investors have shown acautious attitude are also becoming active.
3) Portfolio Management Status
Acquisition of New Properties and Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus office properties in regional cities andretail properties, etc., with the primary aim of improving the quality of the portfolio and achieving stable growth of earnings while
giving attention to balancing the diversification of the portfolio, both in terms of location and asset type.
During the 44th fiscal period, JPR investigated possible investments primarily in office properties in the Tokyo area, but noacquisition was closed and completed. As of the end of December 2023, the balance of JPR’s assets under management totaled 67
properties, or 497.0 billion yen on an acquisition price basis, with the total leasable floor space standing at 497,252 m 2 and thenumber of tenants at 1,236.

25

Asset Management ReportJapan Prime Realty Investment Corporation

Operational Management of Portfolio
In the office property leasing market in the 44th fiscal period, vacancy rate is declining moderately due to the increasing trend of
positive tenant needs such as the relocation for expansion and the expansion of office spaces in the same buildings, as mentioned
in Management Environment above. Nevertheless, the situation demands that close attention be continuously paid. Under suchcircumstances, JPR endeavored to attract new tenants through strategic leasing activities and enhance the satisfaction of existing
tenants by maintaining close cooperation with property management companies and brokers, with an aim to secure stable earnings
across the entire portfolio as well as its occupancy rate. As a result of these efforts, the occupancy rate at the end of the 44th fiscal
period was kept at a high level, as it rose 0.6 percentage points period-on-period to 98.7%.
In terms of property management, JPR continued to proactively implement value enhancement works based on tenant needs, on
the ground of its brand concept A/3S (Amenity/Service, Safety and Save Energy) that has been established with an aim to create
spaces where the workers feel satisfaction.
On top of this, JPR is engaged in a variety of environmental initiatives. In terms of construction work, JPR conducted replacementof lighting equipment with LED lamps, replacement of air conditioning units, replacement of power-receiving and transforming
facilities, renewal of elevators and replacement of toilets, etc., which are expected to be effective for CO2 emissions-reduction
efforts, at its multiple properties.
JPR also continues its endeavors to obtain environmental certifications. As of December 31, 2023, JPR has acquired DBJ Green
Building Certification*1 for 14 properties in total (including one newly certified property). JPR has also obtained CASBEE for
Building Certification*2 for 42 properties in total (including one newly certified property), and BELS*3 certification for 4 properties
in total (including one newly certified property) (including one property certified as ZEB Oriented (a ZEB *4 certification typedesignated as ZEB Oriented*5)). On top of these certifications JPR acquired, its endeavors on environmental issues were so
acknowledged that it was designated as “Green Star” in the GRESB*6 Real Estate Assessment for 2023, marking the tenthconsecutive year of recognition with the highest ranking in the survey. JPR has also been granted the highest rank of “5 Stars” inthe rating, which makes relative assessment based on total scores, for five consecutive years.
*1 The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on thescoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate
disasters and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”).
*2 CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental
performance of buildings. Efforts to develop and popularize the system in Japan are being carried out under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism.
*3 BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performance labeling system created for the purpose that a third-party
organization accurately conducts the evaluation and indication of energy efficiency performance of non-residential buildings in accordance with the Assessment
Guidelines on Energy Efficiency Performance of Non-residential Buildings (2013) established by the Ministry of Land, Infrastructure, Transport and Tourism.
*4 ZEB is an abbreviation of Net Zero Energy Building, and refers to buildings that aim to balance out the annual primary energy they consume to zero, while realizing
a comfortable indoor environment.
*5 ZEB Oriented refers to special use buildings with a total floor space of 10,000 m2 or more that have adopted measures to achieve energy conservation and reduced
primary energy consumption by at least 40% from the standards set in the Act on the Improvement of Energy Consumption Performance of Buildings.
*6 GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) awareness of real estate companies and funds, as well as
the name of the organization which runs the assessment system. It was founded in 2009 primarily by major European pension fund groups. Of the survey subjects,
GRESB Real Estate Assessment covers real estate companies and funds that are mainly engaged in managing existing properties.

Fund Procurement
JPR focuses its endeavors on debt financing with an emphasis placed on lengthening debt maturity and diversifying repayment
dates, in an effort to make its financial base more solid and stronger. JPR borrowed 18.5 billion yen in the 44th fiscal period to fundthe refinancing of interest-bearing debts (excluding short-term debts) it repaid during the same fiscal period.
As of the end of the 44th fiscal period, the balance of interest-bearing debts totaled 205.4 billion yen, with a balance of borrowingsof 169.5 billion yen and a balance of investment corporation bonds of 35.9 billion yen. The ratio of interest-bearing debt to total
assets (LTV) (Note 1) was 40.2%, long-term and fixed interest-bearing debt ratio (Note 2) was 100.0%, average debt cost (Note 3)
was 0.76% and average maturity (Note 4) was 4.5 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial institutions.
The following represents the issuer ratings for JPR as of the end of the 44th fiscal period.
Details of Corporate Credit Ratings as of December 31, 2023
Credit Rating Agency
Japan Credit Rating Agency, Ltd. (JCR)

Corporate Credit Rating (Outlook)
AA (Stable)

Rating and Investment Information, Inc. (R&I)

AA- (Stable)(Note 1) Ratio of interest-bearing debts to total assets (LTV): (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 2) Long-term and fixed interest-bearing debt ratio: long-term, fixed interest-bearing debts / total interest-bearing debts(Note 3) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 44th fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

63Asset Management ReportJapan Prime Realty Investment Corporation(3) Additional
Additional Offerings,(3)
Offerings,Etc.
Etc.

4.

The table below indicates additional offerings, etc. JPR has conducted in the last five years.
Date

Number of Units
Outstanding

Event

Variation

Unitholders’ Capital(millions of yen)

Balance

Variation

Remarks

Balance

March 3, 2020

Additional public offering

35,250958,250

16,207

247,860(Note 1)January 18, 2022

Additional public offering

38,100996,350

13,594

261,455(Note 2)February 16, 2022

Third-party allotment

828

997,178295

261,751(Note 3)(Note 1) New investment units were issued through a public offering at 474,810 yen per unit (underwriting price of 459,790 yen per unit) to fund acquisition of new specified
assets and partly repay debts.
(Note 2) New investment units were issued through a public offering at 368,480 yen per unit (underwriting price of 356,824 yen per unit) to fund acquisition of new specified
assets and partly repay debt.
(Note 3) New investment units were issued through a third-party allotment at 356,824 yen per unit to partly repay debt.

(4) CashCash Distributions
Distributions(4)

5.

With regard to the cash distributions of the 44th fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 43rd fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. In addition,
for the 44th fiscal period, JPR decided to reverse part of reserve for reduction entry (221 million yen) internally reserved pursuant to
the Special Provisions for Taxation in Cases of Repurchase of Specified Assets (Article 65-7 of the Act on Special Measures Concerning
Taxation). As a result, the cash distribution per unit came to 7,600 yen for the 44th fiscal period.
(Thousands of yen unless otherwise indicated)
40th Fiscal
Period(Jul. 1, 2021 Dec. 31, 2021)

41st Fiscal
Period(Jan. 1, 2022 –Jun. 30, 2022)

42nd Fiscal
Period(Jul. 1, 2022 Dec. 31, 2022)

43rd Fiscal
Period(Jan. 1, 2023 –Jun. 30, 2023)

44th Fiscal
Period(Jul. 1, 2023 –Dec. 31, 2023)

7,901,374

8,614,933

8,476,171

8,104,860

7,362,400

666,586

836,945821,989

526,307

4,857

Total Cash Distributions

7,234,787

7,777,988

7,728,129

7,578,552

7,578,552(Cash Distribution per Unit)

Fiscal Period

Unappropriated Retained Earnings at End of Period

BreakdownInternal Reserves(7,550 yen)

(7,800 yen)

(7,750 yen)

(7,600 yen)

(7,600 yen)

Total Cash Distributions from Net Income

7,234,787

7,777,988

7,728,129

7,578,552

7,578,552(Cash distribution from net income per unit)(7,550 yen)

(7,800 yen)

(7,750 yen)

(7,600 yen)

(7,600 yen)

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)

–

–

–

–

–

(- yen)(- yen)(- yen)(- yen)(- yen)

–

–

–

–

–

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

Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments(Of the repayment of paid-in capital per unit, distribution perunit from the reserve for temporary difference adjustments)
Of the repayment of paid-in capital, total cash distributions
through the reduction in unitholders’ capital for tax purposes(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)47

Asset Management ReportJapan Prime Realty Investment Corporation(5) Future
Future Management
Management Policies
CriticalIssues(5)
Policiesand
andCriticalIssues6.

For the moment, the Japanese economy is expected to keep recovering gradually, given the improving employment and income
environments and the effects of various policies. In particular, due to a rise in demand from inbound foreign tourists and consumer
spending as well as the growth in capital investment, etc., the Japanese economy is expected to remain solid going forward. However,attention should be paid to the concerns about possible stagnation in overseas economies and the impacts of fluctuations in the financial
and capital markets in and outside Japan.
In the office property leasing market, needs for relocation and office space expansion in the same buildings are returning, and a gradual
recovery from the bottom is anticipated. Under these circumstances, JPR is resolved to continue its endeavors to enhance thecompetitiveness of its owned properties, as it focuses on improving tenant satisfaction through proactive implementation of valueenhancement works and provision of elaborate management services.
In the for-sale real estate market, it has become even more important to discern the growth potential in earnings of respective properties,
while continuously taking into account the impact of the changes in the Japanese economy on the leasing market. In consideration of
the current situation in which the low-yield environment continues to stay, it is necessary to firmly keep the attitude of vigorously
selective investment for implementing real estate investment that assumes possession of properties over the medium to long term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on office properties in the Tokyo area, with an aim to improve the quality of its
portfolio and enhance its growth potential and stability over the long term. In the for-sale office property market, the purchase cap
rate and expected cap rate levels still stay low, with properties remaining in short supply. Although close attention must be paid to
the trends in the leasing market going forward, JPR will fully investigate the stability and growth potential of candidate properties
when acquiring them. As for retail properties, etc., JPR will work to invest in strictly selected blue-chip properties that can maintainstable revenues at a certain level in order to complement the stability of earnings of the entire portfolio. As it investigates properties,
JPR will continue its endeavors to acquire new properties under reasonable terms by negotiating prices based on detailed market
studies and property due diligence.
Moreover, JPR will make investment decisions by proactively collecting information in collaboration with Tokyo Tatemono Co.,
Ltd., the main sponsor of the Asset Manager, accurately assessing market trends and carefully researching investment value,
including the future potential of candidate properties.
Furthermore, JPR will also investigate asset replacement by taking into consideration the timing of implementation, in order toimprove the quality of its portfolio and enhance its growth potential over the long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over the medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions in consideration of the current leasing market situations and promote rapid decision making- Conduct strategic value enhancement works with the intent to improve property earnings and increase tenant satisfaction- Reinforce responses to business continuity plans and environmental friendliness that command high social demand3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will control its
LTV in a conservative manner. In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in aneffort to diversify the repayment dates of interest-bearing debts and reduce the repayment amount for each fiscal period, with aneye on reducing refinancing risks that may arise in accordance with future changes in the financial environment. Moreover, JPR
intends to work on fund procurement through issuance of investment corporation bonds as it aims to diversify fund procurementmeans and sources.

85

Asset Management ReportJapan Prime Realty Investment Corporation(6) Information
Information Disclosure(6)
Disclosure

7.

Positioning the proactive voluntary disclosure of information as one of its key management policies, JPR voluntarily discloses
information believed to be useful to investment decisions, along with the information disclosure required by the Tokyo Stock Exchange
and set forth by laws and regulations, etc. As a means for implementing voluntary disclosure, JPR is proactively employing its website(https://www.jpr-reit.co.jp/en/) to provide information including monthly occupancy rates of all properties in the portfolio and historical
data, offer expanded information on sustainability and deliver video presentation on financial results sessions for securities analysts.

(7) Significant
Significant Subsequent
Events(7)
Subsequent
Events8.

Not applicable<Reference Information>
Property Acquisition
JPR concluded a sale and purchase agreement regarding the following property on February 16, 2024.
<Nakano Central Park East>
Property overview
Location:
10-1 Nakano 4-chome, Nakano-ku, Tokyo (residential address)
Type of ownership:
Land: Ownership (co-ownership: 53.0% co-ownership interest)
Building: Ownership (co-ownership: 53.0% co-ownership interest)
Site area:
6,045.05 m2 (equivalent to co-ownership interest: 3,203.88 m2)
Total floor space:
37,870.65 m2 (equivalent to co-ownership interest: 20,071.44 m2)
Structure/floors:
S, RC with flat roof, B2/10F
Completed:
March 2012
Number of tenants:
14
Total leasable floor space: 13,523.68 m2
Total leased floor space: 12,555.41 m2
Occupancy rate:
92.8%(Note) As a pass-through master lease agreement has been concluded between the trustee and Tokyo Tatemono Co., Ltd. (themaster lessee), “Number of tenants” indicates the number of sublessees subleased by the master lessee at the time of
concluding the sale and purchase agreement. “Total leasable floor space” and “Total leased floor space” are based on
the figures equivalent to co-ownership interest that JPR plans to acquire at the time of concluding the sale and purchaseagreement, out of the space leased by the master lessee to the sublessees.
Transaction terms and conditions
Purchase price:
28,800 million yen
Asset type:
Beneficiary interests
Contract date:February 16, 2024
Acquisition date:
March 1, 2024 (scheduled)

69Asset Management ReportJapan Prime Realty Investment Corporation

2.
ofthe
theInvestment
Investment
Corporation
2. Overview
Overview ofCorporation(1) Unitholders’
Unitholders’ Capital(1)
Capital

9.

40th Fiscal
Period as ofDecember 31, 2021
5,000,000

41st Fiscal
Period as ofJune 30, 2022
5,000,000

42nd Fiscal
Period as ofDecember 31, 2022
5,000,000

43rd Fiscal
Period as ofJune 30, 2023
5,000,000

44th Fiscal
Period as ofDecember 31, 2023
5,000,000

Total number of units issued andoutstanding

958,250

997,178

997,178

997,178

997,178

Unitholders’ capital (millions of yen)

247,860

261,751

261,751

261,751

261,751

Total number of unitholders

10,22910,506

10,435

10,554

10,340Total number of authorized units(2) Matters
Matters Related
Related to(Primary
Investors)(2)
toInvestment
InvestmentUnits
Units(Primary
Investors)

10.

The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 44th fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12 Harumi, Chuo-ku, Tokyo

312,629

31.35

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

2-11-3 Hamamatsucho, Minato-ku, Tokyo

149,591

15.00

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

2-2-2 Otemachi, Chiyoda-ku, Tokyo

47,678

4.78

Tokyo Tatemono Co., Ltd.

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

29,3002.93

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.50

Meiji Yasuda Life Insurance Company

2-1-1 Marunouchi, Chiyoda-ku, Tokyo

24,0002.40

SSBTC CLIENT OMNIBUS ACCOUNT (Standing
proxy: Custody Services Department, Tokyo Branch, The
Hongkong and Shanghai Banking Corporation Limited)

One Congress Street, Suite 1, Boston,
Massachusetts(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

17,958

1.80

State Street Bank West Client - Treaty 505234(Standing Proxy: Settlement & Clearing Services
Department, Mizuho Bank, Ltd.)

1776 Heritage Drive, North
Quincy, Massachusetts 02171, U.S.A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

13,903

1.39

JP MORGAN CHASE BANK 385781(Standing Proxy: Settlement & Clearing Services
Department, Mizuho Bank, Ltd.)

25 Bank Street, Canary Wharf,
London, E14 5JP, United Kingdom(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

12,606

1.26

State Street Bank and Trust Company 505103 (Standing
Proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)

P.O. Box 351, Boston, Massachusetts 02101,
U.S.A. (Shinagawa Intercity Building A, 2-151 Konan, Minato-ku, Tokyo)

12,511

1.25

645,176

64.70

Total
(Note) Percentage of total units outstanding is rounded down to the second decimal place.

107

Asset Management ReportJapan Prime Realty Investment Corporation(3) Items
Items Related(3)
Relatedto
toDirectors
Directors

11.

A. The Executive Officer, Supervising Officers and Independent Auditor as of the end of the 44th fiscal period are as follows.
Position
Executive Officer

Supervising
Officers (Note 2)

Independent Auditor

Name

Other Current Assignments

Yoshihiro Jozaki

President and Chief Executive Officer, Tokyo Realty
Investment Management, Inc.

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

Group Representative Partner of GYOSEI Certified
Public Tax & Accountants’ Co.
Representative, Nobuhisa Kusanagi Certified Public
Accountant Office

Konomi Ikebe

Grand Fellow, The Chiba University Graduate School of
Horticulture

EY ShinNihon LLC

Total Directors’ Feeduring the 44th Fiscal
Period (thousands of yen)–
(Note 1)–

Numberof Owned
Units
–
–

6,300

–

–
14,700(Note 3)–(Note 1) Yoshihiro Jozaki, Executive Officer, does not receive any compensation from JPR.
(Note 2) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 3) The independent auditor fees include fees regarding auditing of JPR’s English financial statements.

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision not to reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.

(4) Matters
Matters Concerning
andOfficers
Liability
Insurance
Agreement(4)
ConcerningDirectors
Directors
andOfficers
Liability
Insurance
Agreemet

12.

JPR has entered into a directors and officers liability insurance agreement as follows.
Scope of the Insured

Overview of Agreement[Overview of insured event covered by the insurance]
The agreement covers such losses as compensation payment and dispute costs to be borne by the insured when they receive
a claim for compensation for the unjust actions they have taken based on their positions at JPR.

Executive Officer and all
Supervising Officers of JPR[Burden ratio of insurance premium]
JPR bears the entire amount of the insurance premium.
[Measures to ensure the appropriateness of the execution of duties by directors and officers]
The agreement does not protect the actions, etc. which the insured executed while recognizing that it may constitutecriminal act or violate the laws and regulations.

(5) Asset
Asset Manager,
andAdministrative
Agent
(5)
Manager,Asset
AssetCustodian
Custodian
andAdministrative
Agent

13.

The asset manager, asset custodian and administrative agents of JPR at the end of the 44th fiscal period are as follows.
Outsourcing Category

8

Asset manager

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration, etc. concerning unitholders’ list, etc.)

Mizuho Trust & Banking Co., Ltd.

Administrative agent(administration concerning investment corporation bonds)

Mizuho Bank, Ltd.

11

Asset Management ReportJapan Prime Realty Investment Corporation

3.
of JPR’s
JPR’s Assets
AssetsUnder
UnderManagement
Management
3. Status
Status of(1)
Structure(1) JPR’s
JPR’sAsset
Asset Structure

14.

Asset Type

43rd Fiscal Period(as of June 30, 2023)

Area

44th Fiscal Period(as of December 31, 2023)

Central Tokyo

Assets owned by JPR(thousands of yen)
111,765,234

Percentage of total
assets (%)
21.9

Assets owned by JPR(thousands of yen)
111,749,209

Percentage of total
assets (%)
21.9

Greater Tokyo

67,088,046

13.2

67,256,482

13.2

Other Cities

25,699,043

5.0

25,740,031

5.0

Central Tokyo

155,480,973

30.5

155,405,135

30.4

Greater Tokyo

60,994,630

12.0

60,918,449

11.9

Other Cities

47,339,964

9.3

47,295,120

9.3

Deposits and otherassets–41,701,788
(–)

8.2
(–)

42,438,113
(–)

8.3
(–)

Total assets–

510,069,681(468,367,893)

100.0(91.8)

510,802,543(468,364,429)

100.0(91.7)

Real estate

Real estate in trust(Note 1) Total assets owned by JPR are based on the amounts appropriated on the Balance Sheets as of the end of the fiscal periods (book values after depreciation for realestate and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2)
OwnedbybyJPR
JPR(2) Major
Major Assets
Assets Owned

15.

The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 44th fiscal period.
Occupancy Rate(%)

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

11,034.78

100.0

11.2

Office23,987.40

23,243.06

96.9

5.6

Office10,417.25

10,058.67

96.6

3.7

Office18,199,984

5,971.69

5,889.04

98.6

2.5

OfficeBYGS Shinjuku Bldg.

15,418,467

15,222.80

15,188.12

99.8

3.6

OfficeJPR Sendagaya Bldg.

14,650,324

6,177.74

6,177.74

100.0

1.8

OfficeKanematsu Bldg.

14,630,318

8,090.74

7,689.05

95.0

2.3

OfficeSencity Bldg.

14,005,144

13,271.26

12,120.12

91.3

2.5

OfficeKawasaki Dice Bldg.

12,794,610

12,113.10

11,920.13

98.4

1.9

Retail, etc.
OfficeBook Value(thousands of yen)

Leasable Floor
Space (m2)Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

Olinas Tower

25,469,538

Shinjuku Center Bldg.

24,160,125

Tokyo Square Garden

Property Name

Shinjuku Square Tower
Total

Leased Floor
Space (m2)

12,728,879

19,266.47

18,968.36

98.5

2.7

190,445,653

125,553.23

122,289.07

97.4

37.7

Asset Class(Note 1) Rate of monthly contracted rent at end of period is the rate arrived at by dividing the monthly contracted rent at end of period for each property by the total rents
for all properties.
(Note 2) The tenants of Shinjuku Center Bldg., Tokyo Square Garden, Sencity Bldg., Kawasaki Dice Bldg. and Shinjuku Square Tower have sublet space to a sub-lessee
and a lease agreement has been executed where the rent paid by the tenant fluctuates in accordance with the lease conditions of the sub-lessee. Therefore, theleasable floor space, leased floor space and occupancy rate entered for each of these buildings are the figures concerning the sub-lessees of the tenant.

129Asset Management ReportJapan Prime Realty Investment Corporation(3) Itemized
Itemized Portfolio(3)
PortfolioAssets
Assets16.

The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 44th fiscal period (December 31, 2023).
Area Type

Property Name

Kanematsu Bldg.

17-5 Kyobashi 2-chome, Chuo-ku, Tokyo

JPR Ningyo-cho Bldg.

17-4 Nihonbashi Ningyocho 1-chome,
Chuo-ku, Tokyo

Shin-Kojimachi Bldg.

3-3 Kojimachi 4-chome, Chiyoda-ku, Tokyo

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

Office2,351,805

2,970,000

2,075,613

3,230,000

2,408,509

4,300,000

10,777,655

14,400,000

5,195,821

4,830,000

2,676,233

5,270,000

12,728,879

15,500,000

15,418,467

19,400,000
806,000

Real estate

24,160,125

21,200,000

Real estate

3,760,463

3,420,000

Shinagawa Canal Bldg.

Real estate

1,851,929

2,140,000

Rokubancho Bldg.

2-9, etc., Rokubancho, Chiyoda-ku, Tokyo

2,893,318

3,730,000

JPR Harajuku Bldg.

17-11 Jingumae 6-chome, Shibuya-ku, Tokyo

Real estate
Beneficiaryinterest
Beneficiaryinterest
Real estate

8,886,218

10,100,000

4,867,836

6,950,000

14,650,324

11,900,000

JPR Sendagaya Bldg.

11-12 Nihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
23-5 Sendagaya 4-chome, Shibuya-ku, Tokyo

Ginza Sanwa Bldg.
Otemachi Tower (Land with
Leasehold Interest)

6-1 Ginza 4-chome, Chuo-ku, Tokyo
6-6, etc., Otemachi 1-chome, Chiyoda-ku,
Tokyo

Science Plaza-Yonbancho Plaza

9-6, etc., Yonbancho, Chiyoda-ku, Tokyo

Shibadaimon Center Bldg.

10-11 Shibadaimon 1-chome, Minato-ku,
TokyoTokyo Square Garden

1-1 Kyobashi 3-chome, Chuo-ku, TokyoJPR Kojimachi Bldg.

6-1 Kojimachi 5-chome, Chiyoda-ku, Tokyo

Otemachi Financial City North Tower

9-5, Otemachi 1-chome, Chiyoda-ku, Tokyo

Tokyo Tatemono Higashi Shibuya
Bldg.

JPR Nihonbashi-horidome Bldg.

Retail, etc.

14,300,000

604,044

Minami Azabu Bldg.

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

3,677,343

3,880,000

38,388,259

56,700,000

2,745,359

3,470,000

4,165,250

6,530,000

18,199,984

22,200,000

Real estate

5,829,913

6,230,000

Real estate

11,441,906

13,000,000

26-20 Higashi 1-chome, Shibuya-ku, Tokyo

Real estate

11,591,184

12,200,000

Ochanomizu Sola City

6-1 Kanda-Surugadai 4-chome, Chiyoda-ku,
Tokyo and others

6,512,905

7,040,000

JPR Shibuya Tower Records Bldg.

22-14 Jinnan 1-chome, Shibuya-ku, Tokyo

11,407,343

15,300,000

4,252,866

4,100,000

JPR Jingumae 432

32-13 Jingumae 4-chome, Shibuya-ku, Tokyo

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.

1-26, Shinjuku 3-chome, Shinjuku-ku, Tokyo

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

2,497,188

2,360,000

7-1 Yurakucho 2-chome, Chiyoda-ku, Tokyo

Real estate

3,246,125

3,490,000

5-14 Ginza 5-chome, Chuo-ku, Tokyo
20-8 Kanda Misakicho 2-chome, Chiyoda-ku,
TokyoReal estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

10,126,875

11,100,000

3,134,274

3,470,000

4,184,547

6,780,000

2,127,818

1,910,000

2,298,192

2,460,000

1,407,757

2,620,000

7,168,325

11,800,000

3-5 Matsugaya 1-chome, Taito-ku, Tokyo

Real estate

2,813,210

5,870,000

38-5 Akebonocho 2-chome, Tachikawa,Tokyo
5-2 Higashi-Ikebukuro 4-chome, Toshima-ku,
Tokyo
6-1 Kamiooka Nishi 1-chome, Konan-ku,
Yokohama, Kanagawa

Beneficiaryinterest
Beneficiaryinterest

2,867,434

4,680,000

12,297,768

18,500,000

Real estate

4,996,211

7,400,000

FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office14,630,318

Real estate

Shinjuku Center Bldg.

Central Tokyo

13-23 Shibaura 4-chome, Minato-ku, Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome,
Shinagawa-ku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo
19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2023
2023
(thousands of yen)(thousands of yen)
(Note 1)

16-14 Shinkawa 1-chome, Chuo-ku, Tokyo
25-1 Nishi-Shinjuku 1-chome, Shinjuku-ku,
Tokyo
12-3 Minami-Azabu 2-chome, Minato-ku,
Tokyo
12-33 Konan 2-chome, Minato-ku, Tokyo

Across Shinkawa Bldg. Annex

Greater Tokyo

14-1 Kyobashi 2-chome, Chuo-ku, Tokyo

Kanematsu Bldg. Annex

MS Shibaura Bldg.

Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower

10

Location

Type ofOwnership

2-1 Kinshi 3-chome, Sumida-ku, Tokyo
1-7, etc., Shinmachi, Chuo-ku, Chiba, Chiba
17 Nihon-Odori, Naka-ku, Yokohama,
Kanagawa
19-5, etc., Shinyokohama 3-chome,
Kohoku-ku, Yokohama, Kanagawa
1-8 Honcho 4-chome, Kawaguchi, Saitama

13

Asset Management Report

Area Type

Property NameJPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.

Retail, etc.

Greater Tokyo

OfficeOlinas Tower

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.

OfficeOther Cities

JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA(Umekita Plaza and South Building)Retail, etc.

GRAND FRONT OSAKA(North Building)JPR Dojima West (Note 2)
Housing Design Center Kobe

Japan Prime Realty Investment Corporation

Location
1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1000, etc., Shinmachi, Chuo-ku, Chiba-shi,
Chiba
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome,
Nakahara-ku, Kawasaki, Kanagawa
3-1 Bessho 7-chome, Minami-ku, Saitama,
Saitama
8-3, etc., Ekimae-Honcho, Kawasaki-ku,
Kawasaki, Kanagawa
2-4 Ueno 7-chome, Taito-ku, Tokyo
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka
11-28 Minamisemba 4-chome, Chuo-ku,
Osaka, Osaka
4-1 Ofuka-cho, Kita-ku, Osaka, Osaka(Umekita Plaza)
4-20 Ofuka-cho, Kita-ku, Osaka, Osaka(South Building)
3-1 Ofuka-cho, Kita-ku, Osaka, Osaka
3-5 Dojima 2-chome, Kita-ku, Osaka, Osaka
2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo

JPR Chayamachi Bldg.

2-19 Chayamachi, Kita-ku, Osaka, Osaka

FUNDES Tenjin Nishidori

3-21 Tenjin 2-chome, Chuo-ku, Fukuoka,
Fukuoka

Total

Type ofOwnership
Real estateAppraisal ValueBook Valueas of December 31,
as of December 31,
2023
2023
(thousands of yen)(thousands of yen)
(Note 1)
25,469,538
40,900,000

Real estate

7,675,243

10,100,000

Beneficiaryinterest

5,526,664

11,100,000

Real estate

14,005,144

15,700,000

Beneficiaryinterest

6,819,850

11,100,000

Real estate

1,530,745

3,070,000

Real estate

7,070,809

5,340,000

3,425,480

4,350,000

12,794,610

12,600,000

3,695,578

4,090,000

1,491,568

2,160,000

1,636,550

2,410,000

2,301,570

4,110,000

1,296,711

1,550,000

1,954,353

4,080,000

2,098,293

3,980,000

Real estate

3,791,572

3,510,000

Real estate

9,895,912

24,400,000

5,338,086

4,770,000

3,945,054

4,780,000

11,788,303

12,300,000

9,496,102

10,100,000

Beneficiaryinterest
Beneficiaryinterest
Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

2,534,103

2,800,000

Real estate

6,170,485

7,330,000

Beneficiaryinterest

5,948,525

8,410,000

Real estate

3,347,958

3,690,000

468,364,429

596,266,000(Note 1) The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”(Note 2) The property was renamed from Osaka Dojima Bldg. to JPR Dojima West on January 1, 2024. The same applies hereinafter.

14

Asset Management ReportJapan Prime Realty Investment Corporation

The following table provides changes in rental business results for each of JPR’s real estate properties and beneficiary interests in realestate.

12

OfficeOfficeOfficeOther Cities

Retail, etc.

Greater Tokyo

Retail, etc.

Central Tokyo

Area Type

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg. (Note 3)
MS Shibaura Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Kojimachi Bldg.
Otemachi Financial City North Tower
Tokyo Tatemono Higashi Shibuya Bldg.
Ochanomizu Sola CityJPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
JPR Ginza Namiki-dori Bldg.
FUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
JPR Yokohama Bldg.
JPR Omiya Bldg.
Sencity Bldg.
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
FUNDES Ueno
Niigata Ekinan Center Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
JPR Shinsaibashi Bldg.
JPR Shinsaibashi West
GRAND FRONT OSAKA(Umekita Plaza and South Building)
GRAND FRONT OSAKA(North Building)JPR Dojima West
Housing Design Center Kobe
JPR Chayamachi Bldg.
FUNDES Tenjin Nishidori
Total

43rd Fiscal Period
44th Fiscal Period(from Jan. 1, 2023 to Jun. 30, 2023)(from Jul. 1, 2023 to Dec. 31, 2023)
RentalRentalRatio to Number
Ratio toNumber of Occupancy Revenues
Occupancy Revenues
Total of Tenants
Total
Tenants at Rate at throughout
Rate atthroughout
Rental at Period
RentalPeriod End Period End
PeriodPeriod End
PeriodRevenues
End
Revenues(Note 1)(%)(thousands(%)(thousands(%)(Note 1)(%)
of yen)of yen)11
95.0
378,1962.2
11
95.0
380,7862.2
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
5
100.0
92,8080.5
5
100.0
97,2500.6
19
97.0
109,517
0.6
20
100.0
114,036
0.7－－
65,169
0.4
－
－
－
－
10
100.0
486,590
2.8
10
100.0
496,8242.9
884.0
140,5810.8
9100.0
146,0480.8
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
28
96.7
406,1202.3
29
98.5
406,1192.3
2398.3
626,0413.6
23
99.8
623,3153.6
4
100.0
39,2130.2
4100.0
38,6680.2
26
96.4
619,0223.6
26
96.6
626,7673.6
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
6
100.0
74,5400.4
6
100.0
74,0910.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
10
77.1
221,9191.3
11
88.6
207,9671.2
5
100.0
195,8881.1
5
100.0
193,8701.1
6100.0
314,1501.8
6100.0
310,1891.8
9100.0
121,2920.7
9
100.0
121,791
0.7
2

100.0

1,801,750

10.4

2

100.0

1,801,499

10.3

24
9
50
8
9
16
22
1
6
1

98.3
100.0
99.3
100.0
99.9
100.0
99.0
100.0
77.1
100.0

118,256
185,416
378,794
136,349
293,244
328,957(Note 2)
(Note 2)
79,685(Note 2)

0.7
1.1
2.2
0.8
1.7
1.9
(Note 2)
(Note 2)0.5
(Note 2)

24
9
51
8
9
15
23
1
6
1

97.5
100.0
98.6
100.0
99.9
100.0
99.1
100.0
77.1
100.0

117,871
191,916
351,455
141,527
291,255
338,159(Note 2)
(Note 2)
57,065(Note 2)

0.7
1.1
2.0
0.8
1.7
1.9
(Note 2)
(Note 2)0.3
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

9
5
7
43
19
24
40
10
22
8
44
20
20
11
71
1
1
1
3
29
10
11
23
15
18
15
12
6
16
8
13

100.0
87.2
100.0
100.0
100.0
100.0
97.6
100.0
98.0
100.0
100.0
94.0
83.8
100.0
93.9
100.0
100.0
100.0
100.0
98.4
100.0
100.0
100.0
99.7
99.8
78.4
100.0
99.8
99.9
100.0
99.9

202,343
78,078272,718
142,347
136,375
123,336
486,053
185,437
146,939
490,314354,035
914,825
320,581
216,930
496,316(Note 2)
(Note 2)
(Note 2)
127,041
488,155
127,324
128,157
118,121202,755
111,144
107,101
138,449
158,467
619,189
130,830
146,713

1.2
0.5
1.6
0.8
0.8
0.7
2.8
1.1
0.8
2.8
2.0
5.3
1.9
1.3
2.9
(Note 2)
(Note 2)
(Note 2)
0.7
2.8
0.7
0.7
0.7
1.2
0.6
0.6
0.8
0.9
3.6
0.8
0.8

9
5
7
42
19
23
40
10
23
8
44
22
21
11
73
1
1
1
3
29
10
11
23
16
18
16
12
6
16
7
13

100.0
87.2
100.0
98.4
100.0
91.0
100.0
100.0
100.0
100.0
100.0
96.9
100.0
100.0
91.3
100.0
100.0
100.0
100.0
98.4
100.0
94.5
100.0
98.2
99.8
100.0
100.0
99.8
99.9
93.9
99.9

201,405
79,184273,214
155,451
139,703
121,844478,700
185,844
152,406
490,632
354,389944,248
280,270
256,247
594,106(Note 2)
(Note 2)
(Note 2)
127,041454,670
129,649
115,711122,056
184,150
109,979
103,345
128,698
155,425
618,191
130,278
153,303

1.2
0.5
1.6
0.9
0.8
0.7
2.7
1.1
0.9
2.8
2.0
5.4
1.6
1.5
3.4
(Note 2)
(Note 2)
(Note 2)
0.7
2.6
0.7
0.7
0.7
1.1
0.6
0.6
0.7
0.9
3.6
0.7
0.9

247

93.9

(Note 2)

(Note 2)

249

93.6

(Note 2)

(Note 2)9798.0

(Note 2)

(Note 2)9898.2

(Note 2)

(Note 2)

10
1
5
6
1,224

100.0
100.0
100.0
100.0
98.1

74,812(Note 2)
179,883
58,53917,291,965

0.4(Note 2)
1.0
0.3
100.0

9
1
5
6
1,236

83.2
100.0
100.0
100.0
98.7

86,789(Note 2)
179,505
75,434
17,411,577

0.5(Note 2)
1.0
0.4
100.0

15

Asset Management ReportJapan Prime Realty Investment Corporation(Note 1) The number of tenants at end of period is counted as follows: when a single tenant leases multiple rooms, it is counted as one if the tenant uses the same property.
If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Otemachi Financial
City North Tower, Ochanomizu Sola City, Rise Arena Bldg., Sencity Bldg., Kawasaki Dice Bldg., GRAND FRONT OSAKA (Umekita Plaza and South Building)and part of GRAND FRONT OSAKA (North Building) have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants
fluctuates in accordance with the lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants (for GRANDFRONT OSAKA (North Building), some portions employ fixed master lease or direct lease, but the figure indicates the number of end tenants, including those ofsuch portions.).
(Note 2) JPR does not disclose the rental revenues throughout period of the properties and their ratio to total rental revenues due to inevitable reasons, as no consent todisclosure has been obtained from the tenants or co-owners.
(Note 3) JPR sold JPR Crest Takebashi Bldg. on April 12, 2023.

(4)(4)Status
Statusofof Other
Other Assets
Assets17.

Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above. There
were no additional major specified assets that are main investment targets of JPR other than those listed under (3) above and thoseindicated below as of the end of the 44th fiscal period.
1) Stock
Issuer Name

Number of
SharesKMO Corporation

1,666

Acquisition Price(thousands of yen) (Note 1)

Appraisal Value(thousands of yen) (Note 2)

Unit Price

Unit Price

50

Amount83,740

Amount50

83,740

Profit andLoss from
Valuation

Remarks－－(Note 1) The acquisition price indicates the amount that includes the expenses required for the acquisition.
(Note 2) The appraisal value indicates the book value.

2) Other securities
Type of AssetBook Value(thousands of yen)

VolumeClaim for refund of funds

Unit Price
1

Appraisal Value(thousands of yen) (Note 1)

AmountUnit Price

5,120

－

Amount5,120－Profit andLoss from
Valuation－

Remarks(Note 2)

(Note 1) The appraisal value indicates the book value.
(Note 2) The asset is a claim for refund of funds of Knowledge Capital, a general incorporated association.

3) Other assets
Type of Asset
Claim for refund of funds

Book Value(thousands of yen)

VolumeUnit Price
1－

Appraisal Value(thousands of yen) (Note 1)

Amount710

Unit Price

Amount－(Note 1) The appraisal value indicates the book value.
(Note 2) The asset is a claim for refund of funds of GRAND FRONT OSAKA TMO, a general incorporated association.

16

710

Profit andLoss from
Valuation－

Remarks(Note 2)Asset Management ReportJapan Prime Realty Investment Corporation

4.
ExpendituresofofOwned
Owned
Real
Estate4. Capital
Capital Expenditures
RealEstate(1) Planned
Planned Capital(1)
CapitalExpenditures
Expenditures

18.

The following are major items of capital expenditures for renovation works, etc. planned as of the end of the 44th fiscal period for JPRowned real estate and entrusted real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses
include portions that are classified as expenses in accounting.

Property NameMS Shibaura Bldg.
Kawaguchi Center
Bldg.
JPR Sendagaya Bldg.
Housing Design
Center Kobe
JPR Dojima West
Shinyokohama 2nd
Center Bldg.
Tokyo Tatemono
Higashi Shibuya Bldg.
JPR Ueno East Bldg.

Location

Minato-ku,
Tokyo
Kawaguchi,
Saitama
Shibuya-ku,
Tokyo
Kobe, Hyogo

Osaka, Osaka
Yokohama,
Kanagawa
Shibuya-ku,
Tokyo
Taito-ku, Tokyo
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
Kawaguchi Center
Kawaguchi,
Bldg.
SaitamaYakuin BusinessFukuoka,
GardenFukuoka
JPR Shinsaibashi
Osaka, Osaka
West
Sencity Bldg.
Chiba, Chiba
Sencity Bldg.
Chiba, Chiba
Sumida-ku,
Arca EastTokyo
Shinjuku-ku,
Shinjuku Center Bldg.
Tokyo
Sumida-ku,
Arca EastTokyo

Planned Amount (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 44th
Paid
Fiscal Period

PurposeSchedule

First phase of replacement of air conditioning
units and replacement of lighting equipmentwith LED lamps

Jan. 2024–Jun. 2024

356

–

–

Second phase of replacement of toilets

Jul. 2023–Jun. 2024

107

–

–

First phase of replacement of air conditioning
units

Mar. 2024–May 2024

86

–

–

Fourth phase of replacement of toilets

Jan. 2024–Jun. 2024

81

–

–

First phase of replacement of toilets

Dec. 2023–Jun. 2024

73

–

–

Reinforcement of elevators

Apr. 2024–May 2024

69

–

–

Reinforcement of elevators (No. 3)

Oct. 2023–Feb. 2024

61

–

–

First phase of reinforcement of elevators
Second phase of replacement of piping
equipment
Second phase of replacement of lighting
equipment with LED lamps
Replacement of lighting equipment with LED
lamps
Replacement of water receiving tanks andelevated water tanks
Restoration to original condition
Reinforcement of elevators (West No. 28)

May 2024–Jun. 2024

51

–

–

Jan. 2024–Jun. 2024

48

–

–

Jan. 2024–Jun. 2024

43

–

–

Feb. 2024–Apr. 2024

41

–

–

Mar. 2024–Jun. 2024

40

–

–

Jan. 2024–Mar. 2024
Mar. 2024–Jun. 2024

38
37

–
–

–
–

Renovation of common areas

Apr. 2023–Mar. 2024

35

–

–

Replacement of sprinkler equipment

Feb. 2024–Jun. 2024

31

–

–

Replacement of toilets

Oct. 2023–Mar. 2024

30

–

–

(2) Capital
Capital Expenditures
FiscalPeriod(2)
Expendituresduring
duringthe
the44th
44th
FiscalPeriod

19.

The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 44th fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas with the aim of attracting new tenants, among other works. In addition, aside from these
constructions, JPR conducted construction of 592 million yen (Note), which was appropriated as expenditures for repair andmaintenance.
Property Name

Location

JPR Yokohama Bldg.

Yokohama, Kanagawa

JPR Yokohama Bldg.

Yokohama, Kanagawa

Housing Design Center
Kobe
Kawaguchi Center Bldg.

Replacement of interior fittings on the
8th and 9th floors (partitioning, etc.)
Replacement of interior fittings on the
8th and 9th floors(furniture and ceiling, etc.)

PeriodConstruction
Expenses(millions of yen)Oct. 2023–Dec. 2023

171

Aug. 2023–Dec. 2023

99
92

Kobe, Hyogo

Third phase of replacement of toilets

Jul. 2023–Dec. 2023

Kawaguchi, Saitama

First phase of replacement of toilets
First phase of renewal of air handlingunits on standard floors
Repair of exterior walls(east and south sides)

Jul. 2023–Dec. 2023

92

Jul. 2023–Dec. 2023

81Mar. 2023–Dec. 2023

65

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

JPR Shinsaibashi Bldg.

Osaka, Osaka

14

Purpose17

Asset Management Report

Property NameJapan Prime Realty Investment Corporation

Location

PurposeConstruction
Expenses(millions of yen)

PeriodJPR Yokohama Bldg.

Yokohama, Kanagawa

MS Shibaura Bldg.

Minato-ku, Tokyo

Olinas Tower
Across Shinkawa Bldg.
Annex
Tokyo Tatemono Higashi
Shibuya Bldg.
MS Shibaura Bldg.
JPR Nihonbashi-horidome
Bldg.
Tachikawa Business Center
Bldg.
JPR Harajuku Bldg.

Sumida-ku, Tokyo

Replacement of interior fittings on the
8th and 9th floors(office automation facilities, walls, etc.)
Third phase of reinforcement ofelevators
Replacement of security systems

Chuo-ku, Tokyo

Aug. 2023–Dec. 2023

58

Jun. 2023–Sep. 2023

46

Feb. 2023–Nov. 2023

45

Second phase of replacement of toilets

Apr. 2023–Sep. 2023

45

Shibuya-ku, Tokyo

Reinforcement of elevators (No.2)

Jul. 2023–Oct. 2023

41

Minato-ku, Tokyo

Renovation of common areas

Oct. 2023–Dec. 2023

39

Chuo-ku, Tokyo

Repair of exterior walls

May 2023–Nov. 2023

38

Tachikawa, Tokyo

Repair of exterior walls

Sep. 2023–Dec. 2023

36

Shibuya-ku, Tokyo

Reinforcement of elevators
Jun. 2023–Jul. 2023
Replacement of air-conditioning units, repair of common areas,
replacement of lighting equipment with LED lamps, etc.
Total

1,040

Other Capital Expenditures

33
2,027

(Note) Expenditures for repair and maintenance included 13 million yen of construction management fees paid to construction management companies as well as theamounts for repair and maintenance constructions themselves.

(3) Amounts
Amounts Reserved
andMaintenance
Plans
(3)
Reservedfor
forLong-Term
Long-TermRepairs
Repairs
andMaintenance
Plans

20.

JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.
(Millions of yen)

Operation Period
Balance of deposits at
beginning of current period
Deposits during the period
Amounts used from
deposits during the period
Deposits carried forward to
the next period

40th Fiscal Period(Jul. 1, 2021 Dec. 31, 2021)

41st Fiscal Period(Jan. 1, 2022 Jun. 30, 2022)

42nd Fiscal Period(Jul. 1, 2022 Dec. 31, 2022)

43rd Fiscal Period(Jan. 1, 2023 Jun. 30, 2023)

44th Fiscal Period(Jul. 1, 2023 Dec. 31, 2023)

1,506

1,610

1,758

1,729

1,758

1,008

802

1,024

927

1,433

904

654

1,053

898

1,411

1,610

1,758

1,729

1,758

1,780

18

15

Asset Management ReportJapan Prime Realty Investment Corporation

5. Expenses
and
5. Expenses
andLiabilities
Liabilities
Details
ExpensesRelated
Relatedto
toManagement
Management(1) (1)
Detailsof ofExpenses

1.

43rd Fiscal Period(Jan. 1, 2023 - Jun. 30, 2023)

Item(a) Asset Management Fees (Note)(Thousands of yen)

758,54844th Fiscal Period(Jul. 1, 2023 - Dec. 31, 2023)

709,507

Management fee 1

244,392

248,522

Management fee 2

207,942

209,089

Management fee 3

306,213251,895(b) Administrative Service and Asset Custody Fees

84,48785,381(c) Directors’ Compensation

6,300

6,300

(d) Trust Fees

15,845

15,488(e) Other Operating Expenses

138,111

127,893

Total

1,003,292

944,571(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (43rd fiscal period: 61,300 thousand yen)
have been paid and included in the book value of each property, and fees for asset management of the sold property (43rd fiscal period: 20,845 thousand yen) havebeen paid and deducted from gain on sale of each property.

StatusLoans
Payable(2) (2)
Statusof of
Loans
Payable2.

As of December 31, 2023 JPR has the following loans payable.

Long-Term Loans Payable

Short-Term
Loans Payable

Category

16

Drawdown
Date

Balance asof Jul. 1,
2023(millionsof yen)Mizuho Bank, Ltd.

Apr. 12, 2023

2,500

－

0.145

Jul. 5, 2023

Mizuho Bank, Ltd.

May 31, 2023

3,000

－

0.145

Jul. 5, 2023

LenderTotal

Balance as
Averageof Dec. 31, Interest Rate
Repayment
2023
(%)
Date
(millions(Note 1)of yen)(Note 2)

Repayment
MethodUse

Remarks

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteedon maturity

5,500

－

Mizuho Bank, Ltd.

Mar. 11, 2015

2,000

2,000

1.011 Mar. 11, 2024

Mizuho Bank, Ltd.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Mizuho Bank, Ltd.

Feb. 4, 2016

5,000

5,000

0.804 Feb. 4, 2026

Mizuho Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Mizuho Bank, Ltd.

Dec. 5, 2019

2,000

2,000

0.646 Dec. 5, 2029

Mizuho Bank, Ltd.

Mar. 30, 2021

3,000

3,000

0.675 Mar. 31, 2031

Mizuho Bank, Ltd.

Mar. 30, 2022

2,400

2,400

0.675 Mar. 30, 2032

Mar. 30, 2022

600

600

0.675 Mar. 30, 2032

Mar. 30, 2022

1,000

1,000

0.675 Mar. 30, 2032

Jun. 27, 2023

2,000

2,000

Jun. 27, 2023

2,000

2,000

Principal lump
Unsecured/
0.401 Jun. 25, 2027 sum repayment (Note 3)
Unguaranteedon maturity
0.533 Dec. 27, 2028

Jun. 27, 2023

1,000

1,000

0.948 Jun. 27, 2033

Mizuho Bank, Ltd.
(Sustainability Loan)
Mizuho Bank, Ltd.
(Green Loan)
Mizuho Bank, Ltd.
(Green Loan)
Mizuho Bank, Ltd.
(Green Loan)
Mizuho Bank, Ltd.
(Green Loan)MUFG Bank, Ltd.

Aug. 31, 2015

1,000

－

0.873 Aug. 31, 2023

MUFG Bank, Ltd.

Mar. 25, 2016

5,000

5,000

0.510 Mar. 25, 2024

MUFG Bank, Ltd.

Dec. 15, 2016

2,000

2,000

0.633 Dec. 13, 2024

MUFG Bank, Ltd.

Aug. 8, 2017

1,000

1,000

0.638 Aug. 8, 2025

MUFG Bank, Ltd.

Aug. 29, 2017

5,000

5,000

0.600 Aug. 29, 2025

MUFG Bank, Ltd.

Sep. 5, 2017

3,000

3,000

0.593 Sep. 5, 2025

MUFG Bank, Ltd.

Jun. 25, 2021

4,000

4,000

0.450 Jun. 23, 2028

19

Asset Management Report

Long-Term Loans Payable

Category

LenderJapan Prime Realty Investment Corporation

Drawdown
Date

Balance asof Jul. 1,
2023(millionsof yen)Balance as
Averageof Dec. 31, Interest Rate
Repayment
2023
(%)
Date
(millions(Note 1)of yen)(Note 2)

MUFG Bank, Ltd. (Green Loan)

Aug. 31, 2023

－

1,000

1.116 Aug. 29, 2031

Sumitomo Mitsui Banking Corporation

Dec. 5, 2019

1,000

－

0.245 Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

Jun. 26, 2020

3,000

3,000

0.300 Jun. 26, 2025

Sumitomo Mitsui Banking Corporation

Mar. 30, 2021

2,000

2,000

0.450 Mar. 30, 2028

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

2,500

2,500

0.675 Mar. 30, 2032

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

2,000

2,000

0.600 Mar. 28, 2031

Sumitomo Mitsui Banking Corporation

Mar. 30, 2022

2,000

2,000

0.525 Mar. 29, 2030

Sumitomo Mitsui Banking Corporation

Jun. 27, 2022

2,500

2,500

0.698 Jun. 27, 2029

Repayment
MethodUse

Remarks

Sumitomo Mitsui Banking Corporation

Dec. 5, 2023

－

1,000

1.368

Development Bank of Japan, Inc.

Mar. 24, 2015

2,000

2,000

1.056 Mar. 24, 2025

Development Bank of Japan, Inc.

Dec. 15, 2016

3,000

3,000

0.843 Jun. 14, 2027

Development Bank of Japan, Inc.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

Development Bank of Japan, Inc.

Jun. 27, 2019

2,100

2,100

0.572 Jun. 27, 2029

Development Bank of Japan, Inc.

Jun. 25, 2021

800

800

0.600 Jun. 25, 2030

Development Bank of Japan, Inc.

Dec. 3, 2021

2,000

2,000

0.600 Dec. 3, 2030

SBI Shinsei Bank, Limited

Dec. 5, 2014

2,000

2,000

1.134 Dec. 5, 2024

SBI Shinsei Bank, Limited

Dec. 15, 2016

1,000

1,000

0.843 Jun. 14, 2027

SBI Shinsei Bank, Limited

Apr. 5, 2019

5,000

5,000

0.673

SBI Shinsei Bank, Limited

Sep. 24, 2020

1,000

1,000

0.675 Sep. 24, 2030

SBI Shinsei Bank, Limited

Sep. 24, 2020

1,000

1,000

0.525 Sep. 25, 2028

Shinkin Central Bank

Dec. 5, 2018

3,000

3,000

0.663

Shinkin Central Bank

Jun. 27, 2019

2,000

2,000

0.447 Dec. 27, 2027

Shinkin Central Bank

Dec. 14, 2021

2,000

2,000

The Norinchukin Bank

Dec. 5, 2017

1,000

1,000

The Norinchukin Bank

Jun. 27, 2019

2,000

2,000

0.525 Dec. 14, 2029 Principal lump
Unsecured/
sum repayment (Note 3)0.604 Jun. 5, 2025
Unguaranteedon maturity
0.405 Jun. 25, 2027

The Norinchukin Bank

Dec. 24, 2020

2,000

2,000

0.525 Dec. 25, 2028

The Norinchukin Bank

Dec. 14, 2021

2,000

2,000

0.525 Dec. 14, 2029

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2020

3,000

3,000

0.586

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2020

2,000

2,000

0.606 Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2020

2,000

2,000

0.675 Dec. 24, 2030

Aozora Bank, Ltd.

Jul. 3, 2017

900

900

Aozora Bank, Ltd.

Aug. 25, 2017

1,000

1,000

0.574 Feb. 25, 2025

Aozora Bank, Ltd.

Aug. 25, 2017

1,000

1,000

0.534 Aug. 23, 2024

Aozora Bank, Ltd.

Aug. 30, 2018

2,000

2,000

0.553 Feb. 25, 2025

Aozora Bank, Ltd.

Sep. 24, 2020

500

500

0.525 Sep. 25, 2028

Aozora Bank, Ltd.

Apr. 5, 2022

1,000

1,000

0.525

Apr. 5, 2030

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

－

0.816

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

Jul. 7, 2016

2,000

2,000

0.480

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

Sep. 24, 2019

1,000

1,000

0.554 Sep. 21, 2029

The Bank of Fukuoka, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Bank of Fukuoka, Ltd.
(Green Loan)

Oct. 6, 2023

－

2,000

1.183

Oct. 6, 2031

Meiji Yasuda Life Insurance Company

Feb. 5, 2015

1,000

1,000

1.042

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

Jun. 21, 2018

3,200

3,200

0.813 Jun. 21, 2028

Sumitomo Life Insurance Company

Oct. 11, 2016

2,000

2,000

0.453 Oct. 11, 2024

Sumitomo Life Insurance Company

Jul. 22, 2019

1,000

1,000

0.583 Jul. 20, 2029

Sumitomo Life Insurance Company

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

20

0.625

Jun. 3, 2033

Apr. 5, 2029

Jun. 4, 2027

Feb. 4, 2030

Jul. 3, 2025

17

Asset Management Report

Long-Term Loans Payable

Category

LenderDrawdown
Date

Balance asof Jul. 1,
2023(millionsof yen)Balance as
Averageof Dec. 31, Interest Rate
Repayment
2023
(%)
Date
(millions(Note 1)of yen)(Note 2)The Shinkumi Federation Bank

Aug. 5, 2022

4,000

4,000

0.358 Aug. 5, 2027

The Nishi-Nippon City Bank, Ltd.

May 27, 2016

3,000

3,000

0.646 May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 14, 2021

1,000

1,000

0.525 Dec. 14, 2029

Taiyo Life Insurance Company

Sep. 24, 2015

1,000

1,000

0.969 Sep. 24, 2024

Taiyo Life Insurance Company

Jun. 4, 2018

1,000

1,000

0.811

Taiyo Life Insurance Company

Dec. 25, 2020

1,000

1,000

0.675 Dec. 24, 2030

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

－

Sep. 25, 2018

1,000

1,000

0.661 Mar. 25, 2026

The Chugoku Bank, Ltd.
(Green Loan)

Oct. 6, 2023

－

2,000

1.258

The Yamaguchi Bank, Ltd.

Nov. 21, 2017

1,000

1,000

0.795 Nov. 19, 2027

The Yamaguchi Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Yamaguchi Bank, Ltd.

Mar. 30, 2022

1,000

1,000

0.675 Mar. 30, 2032

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

－

The Iyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Iyo Bank, Ltd.
(Green Loan)

Oct. 6, 2023

－

1,000

1.301

The Kiyo Bank, Ltd.

Jan. 30, 2020

1,000

1,000

0.598 Jan. 30, 2030

The Kiyo Bank, Ltd.

Mar. 30, 2022

1,000

1,000

0.675 Mar. 30, 2032

Sompo Japan Insurance Inc.

Dec. 25, 2015

2,000

－

0.759 Dec. 25, 2023

Sompo Japan Insurance Inc.
(Green Loan)

Dec. 25, 2023

－

2,000

0.803 Jun. 25, 2029

Nippon Life Insurance Company

Nov. 22, 2019

2,000

－

0.225 Nov. 22, 2023

Nippon Life Insurance Company(Green Loan)

Nov. 22, 2023

－

2,000

0.906 Apr. 20, 2029

The Hachijuni Bank, Ltd.

Oct. 9, 2020

1,000

1,000

0.300

The Hachijuni Bank, Ltd.

Sep. 24, 2021

1,000

1,000

0.310 Sep. 24, 2026

Jul. 5, 2023

－

1,000

0.781

Jul. 4, 2031

Jul. 5, 2023

－

1,000

0.491

Jul. 5, 2028

Apr. 30, 2021

1,000

1,000

0.600 Apr. 30, 2030

The Yamagata Bank, Ltd.
(Sustainability Loan)
The Yamagata Bank, Ltd.
(Sustainability Loan)

0.816

0.816

Oct. 6, 2023

Oct. 6, 2031

Oct. 9, 2025

Apr. 5, 2022

1,000

1,000

0.600

Sep. 30, 2022

2,000

2,000

0.888 Sep. 30, 2031

The Ashikaga Bank, Ltd.
(Green Loan)

Jul. 5, 2023

－

1,000

0.471

Kansai Mirai Bank, Limited

Mar. 30, 2022

1,000

1,000

0.600 Mar. 30, 2032

Bank of Kyoto, Ltd.

Mar. 30, 2022

500

500

0.600 Mar. 30, 2032

Jul. 5, 2023

－

500

0.441

Jul. 5, 2028

Jul. 5, 2023

－

1,000

0.680

Jul. 5, 2030

Jul. 5, 2023

－

1,000

0.491

Jul. 5, 2028

The 77 Bank, Ltd.

May 31, 2023

1,000

1,000

0.543 Nov. 30, 2028

Daishi Hokuetsu Bank, Ltd.

Nov. 21, 2022

1,000

1,000

0.566 Nov. 21, 2028

Daido Life Insurance Company

Dec. 27, 2018

1,000

－

0.316 Dec. 25, 2023

Daido Life Insurance Company(Green Loan)

Dec. 25, 2023

－

1,000

0.991 Dec. 25, 2030

The Chiba Bank, Ltd.

Oct. 25, 2018

1,000

－

0.449 Oct. 25, 2023

Oct. 25, 2023

－

1,000

0.853 Oct. 25, 2028

Jun. 27, 2023

1,000

1,000

0.443 Dec. 27, 2027

21

Remarks

Oct. 6, 2031

Resona Bank, Limited

The Chiba Bank, Ltd.
(Green Loan)
Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Use

Oct. 6, 2023

The Yamanashi Chuo Bank, Ltd.

Bank of Kyoto, Ltd.
(Sustainability Loan)
The Gunma Bank, Ltd.
(Green Loan)
The Keiyo Bank, Ltd.
(Green Loan)

Repayment
MethodJun. 5, 2028

The Chugoku Bank, Ltd.

The Yamanashi Chuo Bank, Ltd.

18

Japan Prime Realty Investment Corporation

Apr. 5, 2032

Jul. 5, 2028

Principal lump
Unsecured/
sum repayment (Note 3)
Unguaranteedon maturity

Asset Management Report

Long-Term Loans Payable

Category

Japan Prime Realty Investment Corporation

Drawdown
Date

Balance asof Jul. 1,
2023(millionsof yen)The Hyakugo Bank, Ltd.

Oct. 25, 2018

1,000

1,000

0.582 Apr. 25, 2025

The Hiroshima Bank, Ltd.

Nov. 21, 2022

1,000

1,000

0.566 Nov. 21, 2028

Mitsui Sumitomo Insurance Company,
Limited

Oct. 4, 2019

1,000

1,000

0.310

Sumitomo Mitsui Trust Bank, Limited

Mar. 25, 2016

1,000

1,000

0.691 Mar. 25, 2026

164,000

169,500

LenderTotal

Balance as
Averageof Dec. 31, Interest Rate
Repayment
2023
(%)
Date
(millions(Note 1)of yen)(Note 2)

Oct. 2, 2026

Repayment
MethodUse

Remarks

Principal
lump sum
Unsecured/(Note 3)
repayment on
Unguaranteedmaturity(Note 1) The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.

22

19

Asset Management ReportJapan Prime Realty Investment Corporation(3) Investment
Investment Corporation(3)
CorporationBonds
Bonds

3.

Details of JPR’s investment corporation bonds outstanding as of December 31, 2023 are as follows.
Name
Seventh Series ofInvestment Corporation Bonds
Nineteenth Series ofInvestment Corporation Bonds
Twenty-first Series ofInvestment Corporation Bonds
Twenty-second Series ofInvestment Corporation Bonds
Twenty-third Series ofInvestment Corporation Bonds
Twenty-fourth Series ofInvestment Corporation Bonds(Green Bonds)
Twenty-fifth Series ofInvestment Corporation Bonds(Green Bonds)
Twenty-sixth Series ofInvestment Corporation Bonds
Twenty-seventh Series ofInvestment Corporation Bonds(Sustainability Bonds)
Twenty-eighth Series ofInvestment Corporation Bonds(Green Bonds)
Total

Issue Date

Balance as of
Balance as of
CouponRate
Jul. 1, 2023
Dec. 31, 2023(%)
(millions of yen) (millions of yen)

Maturity Date

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

May 31, 2018

3,000

3,000

0.550

May 31, 2028

Jul. 31, 2019

5,000

5,000

0.570

Jul. 31, 2029

Nov. 26, 2020

6,000

6,000

0.510

Nov. 26, 2030

Mar. 16, 2021

3,000

3,000

0.760

Mar. 14, 2036

Dec. 7, 2021

1,400

1,400

0.420

Dec. 5, 2031

Dec. 7, 2021

1,000

1,000

0.670

Dec. 5, 2036

35,90035,900

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

(Note 1) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 2) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.

(4)
RightstotoShares
Shares(4) Subscription
Subscription Rights

4.

Not applicable20

23

Asset Management ReportJapan Prime Realty Investment Corporation

6.
andSalesSales
during
43rd
FiscalPeriod6. Acquisitions
Acquisitions andduringthethe44th
FiscalPeriod(1)
andSaleSaleofofReal
Real
EstateandAsset-Backed
Securities(1) Acquisition
Acquisition andEstateandAsset-Backed
Securities

5.

JPR made no acquisition or sale of real estate and asset-backed securities in the 44th fiscal period.

(2) Acquisition
Acquisition andAssets(2)
andSaleSaleofofOther
Other
Assets6.

JPR made no acquisition or sale of other assets in the 44th fiscal period.

(3)
on Values
ValuesofofSpecified
Specified
Assets,(3) Survey
Survey on
Assets,Etc.Etc.

7.

JPR conducted no survey on values of specified assets, etc. in the 44th fiscal period.

24

21

Asset Management ReportJapan Prime Realty Investment Corporation(4)
withInterested
InterestedParties
Partiesand
and
Major
Shareholders(4) Transactions
Transactions with
Major
Shareholders

8.

1) Transaction Status
No transaction of special assets or other deals with interested parties and major shareholders were conducted during the 44th fiscal
period.
2) Value of Fee Expenses
Category

Total Paid Fees
(A)

Property Management Fees (Note 2)

360,120

Outsourcing Expenses

711,594

Tenant Brokerage Fees

58,922

Breakdown of Transaction with Interested Parties andMajor Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Co., Ltd.
241,032
Prime Place Co., Ltd.
23,244
Tokyo Tatemono Co., Ltd.
441,686
Prime Place Co., Ltd.
13,202
Tokyo Tatemono Co., Ltd.
22,012
Prime Place Co., Ltd.
3,098

(Thousands of yen)
Ratio to Total
Amount
(B/A)
66.9%
6.5%
62.1%
1.9%
37.4%
5.3%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The property management fees indicated in the above table include construction management fees (total of 44,872 thousand yen) appropriated as assets and nothandled as expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or
major shareholders during the 44th fiscal period.
Tokyo Tatemono Co., Ltd.
Prime Place Co., Ltd.
Tokyo Real Estate Management Co., Ltd.
Shinjuku Center Building Management Co., Ltd.

817,000 thousand yen
65,471 thousand yen
387,015 thousand yen
114,036 thousand yen(5) Transactions with the Asset Management Company regarding(5) Transactions
with the AssetManagement
Company regarding
Conducted by the AssetManagement Company
Concurrent
Work
Conducted
by theConcurrent
AssetWorkManagement
Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

22

25

Asset Management ReportJapan Prime Realty Investment Corporation7.
ofAccounting
Accounting
7. Overview
Overview of(1) Assets,
Assets, Liabilities,
Profits
and
Loss
(1)
Liabilities,Principal,
Principal,andandProfits
and
Loss

9.

For assets, liabilities, principal and profits and loss, please refer to the Balance Sheet, Statement of Income and Retained Earnings,
Statement of Unitholders’ Equity and Notes to Financial Statements as well as Distribution Information on later pages of this report.

(2) Changes
Changes inofof
Depreciation(2)
inCalculation
CalculationMethod
MethodDepreciation

10.

No change has been made.

(3) Changes
Changes inin Valuation(3)
Valuation Method
MethodofofReal
RealEstate
EstateandandInfrastructure
InfrastructureAssets
Assets11.

No change has been made.

8. Overview of Self-Managed Investment Trust Beneficiary
8. Overview
of Self-Managed Investment Trust Beneficiary Certificates
Certificates(1) Acquisition
Acquisition
(1)

12.

Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

–

40

January 22, 2002 (Note)

60

–

100

Accumulated Total

100

–

100

(Note) The acquisition was due to the investment unit split (2.5 units for one existing unit).

(2)
Held
(2) Units
Units Held13.

Number of Units Held at End
of Period

35th Fiscal Period(Jan. 1, 2019 – Jun. 30, 2019)36th Fiscal Period(Jul. 1, 2019 – Dec. 31, 2019)37th Fiscal Period(Jan. 1, 2020 – Jun. 30, 2020)
38th Fiscal Period(Jul. 1, 2020 – Dec. 31, 2020)
39th Fiscal Period(Jan. 1, 2021 – Jun. 30, 2021)
40th Fiscal Period(Jul. 1, 2021 – Dec. 31, 2021)
41st Fiscal Period(Jan. 1, 2022 – Jun. 30, 2022)
42nd Fiscal Period(Jul. 1, 2022 – Dec. 31, 2022)
43rd Fiscal Period(Jan. 1, 2023 – Jun. 30, 2023)
44th Fiscal Period(Jul. 1, 2023 – Dec. 31, 2023)

Total Investment at End of
Period (Note)(millions of yen)

Ratio to Total Units Issued
and Outstanding (%)

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

100

20

0.0

(Note) Total investment at end of period represents the acquisition price.

26

23

Asset Management ReportJapan Prime Realty Investment Corporation

9.
onCorporation
CorporationOwning
OwningForeignReal
Estate
9. Disclosure
Disclosure on
ForeignReal
EstateNot applicable

10. Disclosure on Real Estate Owned by Corporation
10. Disclosure
on Real Estate
Owned
by Corporation Owning Foreign Real Estate
Owning Foreign
RealEstateNot applicable11.
11. OtherOther(1) Notice
Notice(1)1)

14.
General Meeting of Unitholders

The Fourteenth General Meeting of Unitholders of JPR was held on September 5, 2023.
Items approved at the General Meeting of Unitholders are summarized below.
Agenda2)

24

Overview

Partial amendments to the Articles ofIncorporation

Amendments were made to the following items of the Articles of Incorporation.
(1) Addition of a provision to the effect that, with regard to the information that is thecontent of reference materials for the General Meeting of Unitholders, etc., all or part ofthe matters permitted by the Cabinet Office Ordinance among those for which electronic
provision measures are taken may not be stated in the document delivered to unitholders
who have requested delivery of the document n paper format.
(2) Necessary changes to enable electronic signature of the minutes of JPR’s Board of
Directors.
(3) Necessary changes on asset valuation method.
(4) In light of the change in the environment surrounding the real estate market regarding
the asset management fees for the Asset Manager, performance-linked fees based ongain on sale will be adopted by (i) linking part of “Management Fee 1 (Asset-linkedfee)” to an evaluation of sustainability indicators in addition to portfolio asset size, (ii)further increasing the linkage with income related to the rent business, which arerecurring income, by excluding gains/losses on sale of assets from the basic distributableamount for “Management Fee 3 (Distribution-linked fee)” and (iii) changing theconventional fee based on the sales price for “Management Fee 5 (Disposition fee)”, forthe purpose of enhancing the linkage with the interests of unitholders.
In addition, for (iv) “Management Fee 4 (Acquisition Fee)”, the percentage will bechanged for acquisition prices, provided that the existing percentage will be used for
acquisition from related parties.
(5) In order to ensure that the amendments to the Articles of Incorporation relating to (4)above shall apply to asset management fees arising on or after January 1, 2024, as wellas to take transitional measures on the calculation of Management Fee 3, supplementaryprovisions will be established to these effects.
(6) Necessary changes in connection with the introduction of the new NISA.

Appointment of one Executive Officer

Yoshihiro Josaki was appointed as Executive Officer.

Appointment of one Substitute Executive
Officer

Yoshinaga Nomura was appointed as Substitute Executive Officer.

Appointment of three Supervising Officers

Masato Denawa, Nobuhisa Kusanagi and Konomi Ikebe were appointed as Supervising
Officers.

JPR’s Board of Directors
Major issues related to the execution and amendment, etc. of agreements approved at JPR’s Board of Directors meeting in the
44th fiscal period include the following:
Date of Board of Directors
Meeting

Approved Item

Overview

August 17, 2023

Conclusion of memorandum
concerning amendments to theasset management agreement

Reviews were made to necessary provisions of the asset
management agreement, subject to the approval of the proposed
amendments to the Articles of Incorporation at the Fourteenth
General Meeting of Unitholders of JPR held on September 5, 2023.

27

Asset Management ReportJapan Prime Realty Investment Corporation(2)(2) Other
Other

15.

Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis Semi-Annual Report.

28

25

Financial Statements

Japan Prime Realty Investment Corporation

BalanceSheet
Sheet(1)(1)
Balance1.

(Thousands of yen)
End of 43rd Fiscal Period(Jun. 30, 2023)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

End of 44th Fiscal Period(Dec. 31, 2023)

27,056,051
12,285,353
585,133
126,086
13,604
21,67027,775,890
12,036,819
718,302134,389－
27,68340,087,899

40,693,085

71,054,645(24,692,241)

72,115,994(25,598,975)

46,362,404

46,517,018

Buildings in trust
Accumulated depreciation

96,131,588(38,728,727)

96,995,953(39,806,726)

Buildings in trust, net

57,402,861

57,189,227

94,381(41,434)

95,110(43,915)

Buildings, net

Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation

52,946

51,194130,848(82,311)

134,190(84,615)Structures in trust, net

48,53749,575

Machinery and equipment
Accumulated depreciation

851,609(599,522)

885,153(616,794)

Machinery and equipment, net

252,087

268,358

Machinery and equipment in trust
Accumulated depreciation

1,938,100(1,504,418)

1,977,455(1,531,114)

433,681446,340

243,571(129,699)

265,851(142,234)

Tools, furniture and fixtures, net

113,871

123,617

Tools, furniture and fixtures in trust
Accumulated depreciation

311,209(208,610)

326,128(219,578)

Machinery and equipment in trust, net
Tools, furniture and fixtures
Accumulated depreciation

102,598

Tools, furniture and fixtures in trust, net*1

Land
Land in trust
Construction in progress
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

29

145,954,517
205,823,796
14,5083,750

106,550*1145,964,796
205,823,796
18,7682,899

456,565,560

456,562,143

11,801,831
14,817

11,801,831
12,947

11,816,648

11,814,778

88,860808,280
528,440710

88,860826,369
664,508710

1,426,290

1,580,448

469,808,500

469,957,370

150,911
22,371

136,975
15,111

173,282

152,086

510,069,681

510,802,543

1

Financial Statements

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 43rd Fiscal Period(Jun. 30, 2023)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve

End of 44th Fiscal Period(Dec. 31, 2023)

2,658,042
5,500,000
5,000,000
20,000,000
978,420
84,966605
182,1612,808,557
2,138

3,292,699－
8,000,000
15,000,000
921,549
89,582605
365,825
2,839,663
1,466

37,214,891

30,511,391

30,900,000
144,000,000
10,641,493
13,338,894

27,900,000
154,500,000
10,595,861
13,542,543

198,880,387

206,538,404

236,095,279

237,049,796

261,751,240

261,751,240

4,118,301

4,639,105

4,118,301

4,639,105

Unappropriated retained earnings

8,104,860

7,362,400

Total surplus

12,223,161

12,001,505

273,974,402

Total unitholders' equity*3

Total net assets

273,974,402
510,069,681

Total liabilities and net assets

30

273,752,746*3

273,752,746
510,802,543

Financial Statements

Japan Prime Realty Investment Corporation

StatementofofIncome
Income andand Retained(2)(2)
Statement
RetainedEarnings
Earnings

2.

(Thousands of yen)
43rd Fiscal Period(Jan. 1, 2023 – Jun. 30, 2023)

Operating revenue
Rent revenue-real estate
Gain on sale of real estate*1*2

17,291,965
881,854

44th Fiscal Period(Jul. 1, 2023 – Dec. 31, 2023)*1

18,173,819

Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses*1

Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management association accounts
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other

8,310,963
758,548
84,4876,300
15,845
138,111

17,411,577－
17,411,577*18,315,290
709,50785,381
6,300
15,488
127,8939,314,256

9,259,861

8,859,563

8,151,716

193
34,071
2,333
800

190
3,930
5,769
3,475

37,39913,365525,041
50,494
197,730
14,5189,490
434

541,234
57,576
187,303
13,9357,259
269

797,710807,579

Ordinary income

8,099,253

7,357,502

Income before income taxes

Total non-operating expenses

8,099,253

7,357,502

Income taxes-current

605

605

Total income taxes

605

605

Net income

8,098,648

7,356,897

Retained earnings brought forward
Unappropriated retained earnings

6,212
8,104,860

5,503
7,362,400

31

3

Financial Statements

Japan Prime Realty Investment Corporation

StatementofofChanges
Changes inin Unitholders’
Unitholders’ Equity(3)(3)
Statement
Equity3.

(Thousands of yen)
43rd Fiscal Period(Jan. 1, 2023 – Jun. 30, 2023)

44th Fiscal Period(Jul. 1, 2023 – Dec. 31, 2023)

261,751,240

261,751,240

Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period－－

261,751,240

261,751,240

Surplus
Voluntary reserve
Balance at beginning of current period

3,376,470

4,118,301

Changes of items during the period
Provision of reserve for reduction entry

815,777

520,804

Reversal of reserve for reduction entry(73,946)
741,830

520,804

4,118,301

4,639,105

8,476,171

8,104,860(815,777)
73,946(520,804)

Dividends from surplus(7,728,129)(7,578,552)

Net income

8,098,648

7,356,897

Total changes of items during the period(371,311)(742,460)

8,104,860

7,362,400

11,852,642

12,223,161－－－(7,728,129)
8,098,648(7,578,552)
7,356,897

Total changes of items during the period
Balance at end of current period
Unappropriated retained earnings
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Reversal of reserve for reduction entry

Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Provision of reserve for reduction entry
Reversal of reserve for reduction entry
Dividends from surplus
Net income

370,518(221,655)

Balance at end of current period

12,223,161

12,001,505

Total unitholders' equity
Balance at beginning of current period

Total changes of items during the period

273,603,883

273,974,402

Changes of items during the period
Provision of reserve for reduction entry－－

Reversal of reserve for reduction entry－(7,728,129)
8,098,648

Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period(7,578,552)
7,356,897

370,518(221,655)

273,974,402

273,752,746

Total net assets
273,603,883

273,974,402

Changes of items during the period
Provision of reserve for reduction entry－－

Reversal of reserve for reduction entry
Dividends from surplus－(7,728,129)(7,578,552)

Net income

8,098,648

7,356,897

Balance at beginning of current period

Total changes of items during the period
Balance at end of current period

432

370,518(221,655)

273,974,402

273,752,746

Financial Statements

Japan Prime Realty Investment Corporation(4) Statement of Cash Distributions(4) Statement of Cash Distributions

4.

I.
II.
III.
IV.
V.

Unappropriated retained earnings
Reversal of voluntary reserve
Reversal of reserve for reduction entry
Distribution amount(Distribution amount per unit)
Voluntary reserve
Provision of reserve for reduction entry

43rd Fiscal Period(Jan. 1, 2023 – Jun. 30, 2023)
8,104,860,437 yen

44th Fiscal Period(Jul. 1, 2023 – Dec. 31, 2023)
7,362,400,362 yen－
7,578,552,800 yen(7,600 yen)

221,010,037 yen
7,578,552,800 yen(7,600 yen)

520,804,313 yen－

5,503,324 yen

4,857,599 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,578,552,800 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(997,178 units), from the balance ofunappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 65-7 of the
Act on Special Measures Concerning
Taxation, while minimizing the burden tounitholders incurred by accrual of corporate
income tax, etc. Furthermore, JPR shall not
distribute cash in excess of earnings as
stipulated in Article 30 (4) of the Articles ofIncorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Under suchpolicy, JPR decided to pay out distributions ofearnings of 7,578,552,800 yen, which is thelargest integral multiple of the total number ofinvestment units issued and outstanding(997,178 units), from the balance ofunappropriated retained earnings after adding
the reversal of reserve for reduction entry
pursuant to Article 65-7 of the Act on Special
Measures Concerning Taxation, while
minimizing the burden to unitholders incurredby accrual of corporate income tax, etc.
Furthermore, JPR shall not distribute cash inexcess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Retained earnings carried forward

Method for calculating distribution amount33
5

Financial Statements

Japan Prime Realty Investment Corporation

StatementofofCash
CashFlows
Flows(5)(5)
Statement

5.

(Thousands of yen)
43rd Fiscal Period(Jan. 1, 2023 – Jun. 30, 2023)

44th Fiscal Period(Jul. 1, 2023 – Dec. 31, 2023)

8,099,253

7,357,502

2,046,014

2,058,858

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses

14,5189,490

13,9357,259Interest income
Interest expenses(193)
722,772(190)
728,538

Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable(1,643)(13,604)(133,169)
13,604

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization

6,274(8,303)

Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other102,426(104,943)(33,261)(56,739)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(316,877)(12,500)

183,664
31,106

Decrease in property, plant and equipment in trust due to sale

Decrease (increase) in prepaid expenses

3,265,600－

Other, net(31,163)(149,798)

Subtotal

13,785,422

10,013,007

Interest income received
Interest expenses paid
Income taxes (paid) refund

190(728,366)(607)(723,922)(604)

Net cash provided by (used in) operating activities

13,056,642

9,288,670

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment(6,968,920)(681,284)

Purchase of property, plant and equipment in trust
Purchase of intangible assets(7,399,017)(13,909)(704,368)－(5,790)(18,089)

Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits(169,936)
625,641(217,838)
178,421

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(636,540)
573,633(145,181)
348,830

Net cash provided by (used in) investing activities(13,994,840)(1,239,510)

Net cash provided by (used in) financing activities
Proceeds from short-term loans payable

Payments of lease and guarantee deposits

5,500,000－

Repayment of short-term loans payable－(5,500,000)

Proceeds from long-term loans payable
Repayment of long-term loans payable

7,000,000(8,000,000)

18,500,000(13,000,000)

Redemption of investment corporation bonds
Dividends paid

(2,000,000)(7,726,854)－(7,577,854)(7,577,854)

Net cash provided by (used in) financing activities(5,226,854)

Net increase (decrease) in cash and cash equivalents(6,165,052)

471,304

Cash and cash equivalents at beginning of current period

45,506,457

39,341,405*1Cash and cash equivalents at end of current period

6

193

34

39,341,405*139,812,709

Financial Statements

Japan Prime Realty Investment Corporation

Notes
Financial
Statements(6) (6)Notes
to to
Financial
Statements

6.

(Basis of Presenting Financial Statements)
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its financial statements in accordancewith accounting principles generally accepted in Japan (Japanese GAAP), including provisions set forth in the Financial Instruments
and Exchange Act of Japan, the Act on Investment Trusts and Investment Corporations (the Investment Trusts Act), the Companies Act
and the related regulations, which are different in certain respects as to the adoption and disclosure requirements of International
Financial Reporting Standards.
The accompanying financial statements are basically a translation of the audited financial statements of JPR, which were prepared inaccordance with Japanese GAAP and filed with the Kanto Local Finance Bureau. In preparing the accompanying financial statements,
certain reclassifications have been made to the financial statements issued domestically in order to present them in a format which ismore familiar to readers outside Japan. In addition, the notes to financial statements include information which might not be required
under Japanese GAAP but is presented herein as additional information.
JPR’s accounting periods end at the end of June and December.

(Significant Accounting Policies)
1. Standards and Method for Asset
Valuation

2. Depreciation/Amortization
Method for Noncurrent Assets

3. Accounting for Deferred Assets

4. Standards for Recognition of
Revenues and Expenses

5. Scope of Cash and Cash
Equivalents in the Statement of
Cash Flows
6. Other Significant Items
Fundamental to the Preparation of
Financial Statements

Investment securities
Other securities
Stocks and other securities with no market prices
Stocks and other securities with no market prices are stated at cost being determined by the moving averagemethod.
(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ....................................... 3 - 65 years
Structures .................................... 10 - 35 years
Machinery and equipment ............. 3 - 17 years
Tools, furniture and fixtures .......... 3 - 20 years
Assets with purchase costs of 100,000 yen or more but less than 200,000 yen are depreciated over three years based on
the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment Unit Issuance Expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
(1) Revenue Recognition
The details of main performance obligations concerning revenue generated from contracts with customers of JPR
and the ordinary time to fulfil said performance obligations (ordinary time to recognize revenue) are as follows.
a. Sale of real estate
For the proceeds from sale of real estate, JPR recognizes revenue when the purchaser who is a customer obtains
control of the relevant real estate as a result of JPR fulfilling its delivery obligations stipulated in the transaction
contract of the real estate.
b. Utilities income
JPR recognizes utilities income upon the supply of electricity and water, etc. to the lessee who is a customer
based on the lease agreement of real estate and details of agreements incidental to it. Of the utilities income,in the case that JPR deems itself to be an agent, the net amount obtained by deducting the amount it pays toother parties from the amount it receives as charges for electricity and gas, etc. supplied by the said otherparties is recognized as revenue.
(2) Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes (the “property taxes”), JPR
uses the method of charging the corresponding amounts of assessed taxes to the current fiscal period as expenses
related to rent business.
Furthermore, JPR capitalized an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as a part of the purchase cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment capitalized amounted
to 38,073 thousand yen for the fiscal period ended June 30, 2023 and were nil for the fiscal period ended December
31, 2023.
Cash and cash equivalents in the Statement of Cash Flows include the following items:(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well
as all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on the
Balance Sheet and Statement of Income and Retained Earnings.
Furthermore, the following material accounts are separately presented in the Balance Sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust

35

7

Financial Statements

Japan Prime Realty Investment Corporation(Notes to Balance Sheet)*1. Reduction Entry of Property, Plant and Equipment Acquired through Exchange(Thousands of yen)
End of 43rd Fiscal Period(as of June 30, 2023)

End of 44th Fiscal Period(as of December 31, 2023)

Land

1,537,018

1,537,018

Total

1,537,018

1,537,018

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its main lending financial institutions primarily to minimize refinancing risks
and enhance financial stability.
(Thousands of yen)
End of 43rd Fiscal Period(as of June 30, 2023)
Credit limit

End of 44th Fiscal Period(as of December 31, 2023)
24,000,000

Outstanding debts at end of period
Unused commitment line at end of period

24,000,000－－

24,000,000

24,000,000*3 Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 43rd Fiscal Period(as of June 30, 2023)

End of 44th Fiscal Period(as of December 31, 2023)
50,000850,00036

Financial Statements

Japan Prime Realty Investment Corporation(Notes to Statement of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)

43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents

12,680,008
1,801,750

12,770,417
1,801,499

Common charges
Parking fees

1,268,237
284,154

1,249,752
279,989

Advertising fees
Antenna usage fees

38,28928,625

38,10829,418Other

45,221

47,21016,146,287

16,216,396

Subtotal
Other rental revenues
Incidental rent income

1,001,894

988,962

Time-based parking fees

14,58815,262

Cancellation charges

17,496

10,311

Income equivalent to expenses for restoration
to original condition

59,489128,555

Other miscellaneous income

52,20952,089Subtotal
Total rent revenue-real estate

1,145,678

1,195,181

16,363,416,363,49494005,870
17,291,965

17,411,577
17,411,577

B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes

707,113711,594

1,285,235
2,594,259

1,150,651
2,581,530

Casualty insurance

29,75430,571

Repairs and maintenance
Property management fees

433,688
312,682

578,966
315,248

637,968
2,044,640

640,700
2,057,035

265,620

248,990

8,310,963

8,315,290

8,981,002

9,096,287

Management association accounts
Depreciation
Other
Total expenses related to rent business
C. Profits for Rent Business(A-B)*2. Breakdown of Gain on Sale of Real Estate, etc.

(Thousands of yen)
43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

JPR Crest Takebashi Bldg.
Proceeds from sale of real estate

4,169,000－

Cost of sale of real estate
Other expenses related to sale

3,265,600
21,545－－881,854－

43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

Gain on sale of real estate(Notes to Statement of Changes in Unitholders’ Equity)

Total number of authorized units and number of units outstanding
Total number of authorized units
Number of units outstanding

37

5,000,000 units

5,000,000 units

997,178 units

997,178 units

9Financial Statements

Japan Prime Realty Investment Corporation(Notes to Statement of Cash Flows)*1. Reconciliation of the Amounts of the Cash and Cash Equivalents at End of Period in the Statement of Cash Flows with theAmounts of the Corresponding Accounts on the Balance Sheet(Thousands of yen)
43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

Cash and deposits

27,056,051

27,775,890

Cash and deposits in trust

12,285,353

12,036,819

Cash and cash equivalents

39,341,405

39,812,709(Leases)
Future minimum lease payments to be received under non-cancelable operating leases(Thousands of yen)
43rd Fiscal Period(as of June 30, 2023)

44th Fiscal Period(as of December 31, 2023)

Due within one year

6,253,882

6,330,567

Due after one year

16,393,094

17,167,579

Total

22,646,976

23,498,147(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy for Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of short-term
funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to hedging for interest rate fluctuation
risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of bankruptcy of the financial institutions holding the deposits and other credit risks, but the risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but the liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing a commitmentline agreement with the main lending financial institutions, and also having statements of cash receipts and disbursements preparedby the financial division.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
Certain assumptions are used in calculating the fair value of financial instruments, and there can be cases where the values may vary
based on different assumptions.

1038

Financial Statements

Japan Prime Realty Investment Corporation

2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the book values and fair values as of June 30, 2023 of financial instruments, and the difference between theseamounts. Furthermore, notes on “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are omitted asthese are settled with cash and within a short period of time and thus the book value approximates the fair value. Notes on“Investment securities,” “Tenant leasehold and security deposits” and “Tenant leasehold and security deposits in trust” are also
omitted as they lack materiality.
(Thousands of yen)Book Value(Note 1)

Fair Value(Note 1)

Difference(1)

Current portion of investment corporation bonds(5,000,000)(5,051,181)

51,181(2)

Current portion of long-term loans payable(20,000,000)(20,045,897)

45,897(3)

Investment corporation bonds(30,900,000)(30,832,853)-67,146(4)

Long-term loans payable(144,000,000)(144,141,089)

141,089

The following are the book values and fair values as of December 31, 2023 of financial instruments, and the difference between theseamounts. Furthermore, notes on “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are omitted as theseare settled with cash and within a short period of time and thus the book value approximates the fair value. Notes on “Investment
securities,” “Tenant leasehold and security deposits” and “Tenant leasehold and security deposits in trust” are also omitted as they lackmateriality.
Book Value(Note 1)(Thousands of yen)

Fair Value(Note 1)

Difference(1)

Current portion of investment corporation bonds(8,000,000)(8,043,907)

43,907(2)

Current portion of long-term loans payable(15,000,000)(15,039,926)

39,926(3)

Investment corporation bonds(27,900,000)(27,513,692)-386,307(4)

Long-term loans payable(154,500,000)(153,099,478)-1,400,521(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of fair value of financial instruments(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
Of the fair value of these financial instruments, those with market price are measured based on market price and those with no market price are calculated inaccordance with (2) and (4) below.
(2) Current portion of long-term loans payable and (4) Long-term loans payable
The fair value of these financial instruments is calculated based on the discounted cash flow method under which the total amount of principal and interests are
discounted by the rate assumed as being applicable in the event of a new drawdown whose term is corresponding to the remaining loan term.
(Note 3) Amount of repayment of long-term loans payable or redemption of investment corporation bonds scheduled to be due subsequent to the 43rd Fiscal Period end(June 30, 2023)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Investment corporation bonds

5,000,000

3,000,000－

8,500,000

3,000,000

16,400,000

Long-term loans payable

20,000,000

21,000,000

20,900,000

15,000,000

20,200,000

66,900,000

Due after FourYears throughFive Years

Due after Five
Years

Amount of repayment of long-term loans payable or redemption of investment corporation bonds scheduled to be due subsequent to the 44th Fiscal Period end(December 31, 2023)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

Investment corporation bonds

8,000,000－

8,500,000－

3,000,000

16,400,000

Long-term loans payable

15,000,000

23,900,000

14,000,000

21,000,000

23,200,000

72,400,00039

Due after FourYears throughFive Years

Due after Five
Years

11

Financial Statements

Japan Prime Realty Investment Corporation(Securities)
43rd Fiscal Period (as of June 30, 2023)
Not applicable
44th Fiscal Period (as of December 31, 2023)
Not applicable(Derivative Transactions)
43rd Fiscal Period (as of June 30, 2023)
Not applicable as JPR entered into no derivative transactions
44th Fiscal Period (as of December 31, 2023)
Not applicable as JPR entered into no derivative transactions(Retirement Benefits)
43rd Fiscal Period (as of June 30, 2023)
Not applicable as JPR does not have any retirement benefit plans
44th Fiscal Period (as of December 31, 2023)
Not applicable as JPR does not have any retirement benefit plans(Tax Effect Accounting)
1. Breakdown of Main Items that Caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting
43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

31.46%

31.46%

Deductible cash distributions(29.44%)(32.41%)Other(2.01%)

0.96%

Effective tax rate after applying tax effect accounting

0.01%

0.01%

Effective statutory tax rate
(Adjustment)(Equity Method Income and Retained Earnings)
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Not applicable as JPR does not have any affiliated companies
44th Fiscal Period (July 1, 2023 – December 31, 2023)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Not applicable
44th Fiscal Period (July 1, 2023 – December 31, 2023)
Not applicable
2. Affiliated Companies
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Not applicable
44th Fiscal Period (July 1, 2023 – December 31, 2023)
Not applicable

1240

Financial Statements

Japan Prime Realty Investment Corporation

3. Sister Companies
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Not applicable
44th Fiscal Period (July 1, 2023 – December 31, 2023)
Not applicable
4. Directors and Major Individual Unitholders
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Not applicable
44th Fiscal Period (July 1, 2023 – December 31, 2023)
Not applicable(Asset Retirement Obligations)
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Not applicable
44th Fiscal Period (July 1, 2023 – December 31, 2023)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single operating segment engaged in the property rent business.
[Related Information]
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit are in excess of 90% of operating
revenue on the Statement of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan is in excess of 90% of total
property, plant and equipment on the Balance Sheet.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer account for less than 10% of the operating revenue on the Statementof Income and Retained Earnings.
44th Fiscal Period (July 1, 2023 – December 31, 2023)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service unit are in excess of 90% of operating
revenue on the Statement of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from domestic external customers are in excess of 90% of total revenues on the Statementof Income and Retained Earnings.
(2) Property, plant and equipment
Disclosure is omitted as the amount of JPR’s property, plant and equipment located in Japan is in excess of 90% of total
property, plant and equipment on the Balance Sheet.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer account for less than 10% of the operating revenue on the Statementof Income and Retained Earnings.

41

13

Financial Statements

Japan Prime Realty Investment Corporation(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities), retail properties (urban retail properties) and urban multi-use facilities forleasing in Tokyo and other regions. The following is the book value on the Balance Sheet, amount of increase (decrease) during theperiod and fair value of these investment and rental properties.

(Thousands of yen)Book value on the Balance Sheet
Balance at beginning of period

43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

459,781,704

468,367,893

Amount of increase (decrease) during the period
Balance at end of current period
Fair value at end of period

8,586,188(3,463)

468,367,893
592,098,000

468,364,429
596,266,000(Note 1) The book value on the Balance Sheet is the cost of acquisition less accumulated depreciation.
(Note 2) For the 43rd Fiscal Period, the amount of increase is primarily attributable to the acquisition of JPR Dojima West (2,510,474 thousand yen), the acquisition of
FUNDES Tenjin Nishidori (3,355,432 thousand yen) and the acquisition of Ochanomizu Sola City (6,538,208 thousand yen), and the amount of decrease is
primarily attributable to the sale of JPR Crest Takebashi Bldg. (3,265,600 thousand yen) and depreciation (2,044,640 thousand yen). For the 44th Fiscal Period, theamount of decrease is primarily attributable to depreciation (2,057,035 thousand yen).
(Note 3) The fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 43rd and 44th Fiscal Periods for investment and rental properties is as presented in the “Notes to Statementof Income and Retained Earnings.”(Revenue Recognition)
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Breakdown information on revenue from contracts with customers

Sale of real estate(Thousands of yen)

Revenue from Contracts with Customers(Note 1)
4,169,000

Sales to External Customers(Note 2)881,854

1,001,894

1,001,894

Others－

16,290,071

Total

5,170,894

18,173,819

Utilities income (Note 3)(Note 1) Rent revenue subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from “Revenue from contracts with customers”
as such revenue is out of the scope of Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents proceeds fromsale of real estate and utilities income.
(Note 2) As sale of real estate is recorded as gain or loss on sale of real estate, etc. in the Statement of Income and Retained Earnings, the amount obtained by deducting
cost of sale of real estate and other expenses related to sale from proceeds from sale of real estate is indicated for sales to external customers. Furthermore, as JPR
records gain on sale of real estate for operating revenue while recording loss on sale of real estate for operating expenses, the table above indicates the amount ofgain on sale of real estate only.
(Note 3) Utilities income indicates the amount recorded as revenue upon the supply of electricity and water, etc. to the lessee who is a customer based on the lease agreementof real estate and agreements incidental to it.

44th Fiscal Period (July 1, 2023 – December 31, 2023)
Breakdown information on revenue from contracts with customers

Sale of real estate(Thousands of yen)

Revenue from Contracts with Customers(Note 1)－

Sales to External Customers(Note 2)－988,962

988,962

Others－16,422,615

Total

988,962

17,411,577

Utilities income (Note 3)(Note 1) Rent revenue subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) is excluded from “Revenue from contracts with customers” assuch revenue is out of the scope of Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents proceeds from saleof real estate and utilities income.
(Note 2) As sale of real estate is recorded as gain or loss on sale of real estate, etc. in the Statement of Income and Retained Earnings, the amount obtained by deducting
cost of sale of real estate and other expenses related to sale from proceeds from sale of real estate is indicated for sales to external customers. Furthermore, as JPR
records gain on sale of real estate in operating revenue while recording loss on sale of real estate in operating expenses, the table above indicates the amount ofgain on sale of real estate only.
(Note 3) Utilities income indicates the amount recorded as revenue upon the supply of electricity and water, etc. to the lessee who is a customer based on the lease agreementof real estate and agreements incidental to it.

1442Financial Statements

Japan Prime Realty Investment Corporation(Per Unit Information)
43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

274,749 yen

274,527 yen

8,121 yen

7,377 yen

Total net assets per unit
Net income per unit

(Note 1) Net income per unit is calculated by dividing net income by the weighted-average number of units outstanding during the current fiscal period. Diluted net income
per unit has not been presented since no subscription rights to shares are outstanding.
(Note 2) Net income per unit was calculated based on the following data:

Net income (thousands of yen)

43rd Fiscal Period(January 1, 2023 – June 30, 2023)
8,098,648

Amounts not attributable to ordinary unitholders (thousands of yen)
Net income attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period

44th Fiscal Period(July 1, 2023 – December 31, 2023)
7,356,897－－

8,098,648

7,356,897

997,178 units

997,178 units(Subsequent Events)
Not applicable.

43

15

Financial Statements

Japan Prime Realty Investment Corporation

DetailedSchedules
Schedules(7)(7)
Detailed7.1) Schedule of Securities
a. Stock

Issuer Name

Number of
SharesUnit Price(thousands ofyen)

Amount(thousandsof yen)Unit Price(thousandsof yen)Amount(thousands ofyen)Profit andLoss from
Valuation(thousands ofyen)

KMO Corporation

1,666

50

83,74050

83,740

－

－

Total

1,666

－

83,740－83,740－－Acquisition Price (Note 1)

Appraisal Value (Note 2)

Remarks(Note 1) The acquisition price indicates the amount that includes the expenses required for the acquisition.
(Note 2) The appraisal value indicates the book value.

b. Other securities
Type of Asset

Issuer Name

Claim for refundof funds

Knowledge Capital,a general
incorporated
association

Book Value(thousandsof yen)AccruedInterest(thousandsof yen)Prepaidinterest
accrued(thousands ofyen)

Appraisal
Value(thousands ofyen) (Note)

Profit andLoss from
Valuation(thousands of
yen)

－

5,120

－

－

5,120

－

－

－

5,120

－

－

5,120

－

－

Total
Face
Value

Total
(Note) The appraisal value indicates the book value.

2) Status of Contract Amounts, etc. and Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable

16

44

RemarksFinancial Statements

Japan Prime Realty Investment Corporation

3) Schedule of Assets Related to Real Estate

Asset TypeAccumulated Depreciation
Balance as of
Balance as of Increase during Decrease during
Depreciation
December 31, Or Accumulated
July 1, 2023
the Period
the Period
during the2023
Amortization(thousands of (thousands of(thousands ofPeriod(thousands of (thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Current Assets
Property, plantand equipment(Real estate)
Buildings
Structures
Machinery andequipment
Tools,
furniture andfixtures
Land
Constructionin progress
Subtotal(Beneficiaryinterests in trust)Buildings in
trust
Structures intrust
Machineryandequipment in
trust
Tools,
furniture andfixtures intrust
Land in trust
Constructionin progress intrust
Subtotal

Net Balance as ofDecember 31, 2023
(thousands of yen)

－

－

－

－

－

－

－

71,054,645
94,381

1,061,348
728－－

72,115,994
95,11025,598,975
43,915

906,733
2,481

46,517,018
51,194

851,60933,543－885,153

616,794

17,272

268,358

243,571

22,280－265,851

142,234

12,534

123,617

145,954,517

10,279－145,964,796－－

145,964,796

14,508

6,195

1,935

18,768－－18,768218,213,234

1,134,376

1,935

219,345,674

26,401,920

939,022

192,943,754

96,131,588

864,365－

96,995,953

39,806,726

1,077,999

57,189,227

130,848

3,342－

134,190

84,6152,304

49,575

1,938,100

39,354－

1,977,455

1,531,114

26,695446,340

311,209

14,919－326,128

219,578

10,967

106,550

205,823,796－－

205,823,796－－

205,823,796

3,750

479

1,330

2,899

－

－

2,899

304,339,293

922,460

1,330

305,260,424

41,642,034

1,117,966

263,618,389

Total

522,552,527

2,056,837

3,265

524,606,098

68,043,955

2,056,988

456,562,143

Intangible Assets
Leasehold
right
Other

11,801,831－－

11,801,831－－

11,801,831

20,089－－20,089

7,142

1,870

12,947

Total

11,821,920－－

11,821,920

7,142

1,870

11,814,778

Remarks(Note 1) The “Increase during the Period” is due to construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of construction completion for construction in progress and construction inprogress in trust.

4) Schedule of Other Specified Assets
VolumeUnit Price(thousandsof yen)Amount(thousandsof yen)Unit Price(thousandsof yen)Amount(thousands ofyen)Profit andLoss from
Valuation(thousands of
yen)

1

－

710

－

710

－

－

1

－

710

－

710

－

－

Book Value
Type of Asset

Issuer Name

Claim for refund of funds

GRAND FRONTOSAKA TMO,
a general incorporated
association

Total

Appraisal Value (Note)

Remarks(Note) The appraisal value indicates the book value.

45

17Financial Statements

Japan Prime Realty Investment Corporation

5) Schedule of Investment Corporation Bonds

Decreaseduring the
Period(thousands ofyen)

Balance as ofDecember 31,
2023(thousands of
yen)

Name

Issue Date

Balance as ofJuly 1, 2023
(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

Twenty-third Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2018

3,000,000－

3,000,000

0.550

May 31, 2028

Twenty-fourth Series ofInvestment Corporation
Bonds (Green Bonds)(Note 1)

Jul. 31, 2019

5,000,000－

5,000,000

0.570

Jul. 31, 2029

Twenty-fifth Series ofInvestment Corporation
Bonds (Green Bonds)(Note 1)

Nov. 26, 2020

6,000,000－

6,000,000

0.510

Nov. 26, 2030

Twenty-sixth Series ofInvestment Corporation
Bonds (Note 1)

Mar. 16, 2021

3,000,000－

3,000,000

0.760

Mar. 14, 2036

Twenty-seventh Series ofInvestment Corporation
Bonds (Sustainability
Bonds) (Note 1)

Dec. 7, 2021

1,400,000－

1,400,000

0.420

Dec. 5, 2031

Twenty-eighth Series ofInvestment Corporation
Bonds (Green Bonds)(Note 1)

Dec. 7, 2021

1,000,000－

1,000,000

0.670

Dec. 5, 2036

35,900,000－

35,900,000

Total

CouponRate
Maturity Date
(%)

Use

Security(Note 2)

Unsecured(Note 1) These investment corporation bonds are equipped with the same rank rider limited among certain investment corporation bonds.
(Note 2) Funds are used for purchasing real estate or real estate beneficiary interest in trust (including accompanying expenses), repaying loans payable and redeeming
investment corporation bonds, etc.
(Note 3) Amounts of investment corporation bonds to be redeemed within five years after the date of the Balance Sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Years Due after Four Yearsor Less
through Two Years
through Three Years
through Four Years
through Five Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)

Investment corporation
bonds

18

8,000,000－

46

8,500,000－

3,000,000

Financial Statements

6) Schedule of Loans Payable
LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current2023
2023
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Short-Term Loans Payable
Mizuho Bank Ltd.

2,500,000－

2,500,000－

0.145%

Jul. 5, 2023

Mizuho Bank Ltd.

3,000,000
5,500,000－

3,000,000－

0.145%

Jul. 5, 2023－

5,500,000－
Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Total

LenderIncrease
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current2023
2023
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)(Note 4)

Use

Unsecured/
Unguaranteed

Remarks

Long-Term Loans Payable (Note 1)
Mizuho Bank, Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank, Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

Mizuho Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Mizuho Bank, Ltd.

2,000,000－－

2,000,000

0.646%

Dec. 5, 2029

Mizuho Bank, Ltd.

3,000,000－－

3,000,000

0.675%

Mar. 31, 2031

Mizuho Bank, Ltd.

2,400,000－－

2,400,000

0.675%

Mar. 30, 2032

Mizuho Bank, Ltd. (Green Loan)

1,000,000－－

1,000,000

0.675%

Mar. 30, 2032

600,000－－

600,000

0.675%

Mar. 30, 2032

Mizuho Bank, Ltd. (Green Loan)

2,000,000－－

2,000,000

0.533%

Dec. 27, 2028

Mizuho Bank, Ltd. (Green Loan)

2,000,000－－

2,000,000

0.401%

Jun. 25, 2027

Mizuho Bank, Ltd. (Green Loan)

1,000,000－－

1,000,000

0.948%

Jun. 27, 2033

MUFG Bank, Ltd.

1,000,000－

1,000,000－

0.873%

Aug. 31, 2023

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

MUFG Bank, Ltd.

2,000,000－－

2,000,000

0.633%

Dec. 13, 2024

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.638%

Aug. 8, 2025

MUFG Bank, Ltd.

5,000,000－－

5,000,000

0.600%

Aug. 29, 2025

MUFG Bank, Ltd.

3,000,000－－

3,000,000

0.593%

Sep. 5, 2025

MUFG Bank, Ltd.

4,000,000－－

4,000,000

0.450%

Jun. 23, 2028
Aug. 29, 2031

Mizuho Bank, Ltd. (Sustainability Loan)－

1,000,000－

1,000,000

1.116%

Sumitomo Mitsui Banking Corporation

1,000,000－

1,000,000－

0.245%

Dec. 5, 2023

Sumitomo Mitsui Banking Corporation

3,000,000－－

3,000,000

0.300%

Jun. 26, 2025

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.450%

Mar. 30, 2028

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

0.675%

Mar. 30, 2032

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.600%

Mar. 28, 2031

Sumitomo Mitsui Banking Corporation

2,000,000－－

2,000,000

0.525%

Mar. 29, 2030

Sumitomo Mitsui Banking Corporation

2,500,000－－

2,500,000

0.698%

Jun. 27, 2029

Sumitomo Mitsui Banking Corporation－

1,000,000－

1,000,000

1.368%

Jun. 3, 2033

Development Bank of Japan Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14, 2027

Development Bank of Japan Inc.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

Development Bank of Japan Inc.

2,100,000－－

2,100,000

0.572%

Jun. 27, 2029

Development Bank of Japan Inc.

800,000－－

800,000

0.600%

Jun. 25, 2030

Development Bank of Japan Inc.

2,000,000－－

2,000,000

0.600%

Dec. 3, 2030

SBI Shinsei Bank, Limited

2,000,000－－

2,000,000

1.134%

Dec. 5, 2024

SBI Shinsei Bank, Limited

1,000,000－－

1,000,000

0.843%

Jun. 14, 2027

SBI Shinsei Bank, Limited

5,000,000－－

5,000,000

0.673%

Apr. 5, 2029

SBI Shinsei Bank, Limited

1,000,000－－

1,000,000

0.675%

Sep. 24, 2030

SBI Shinsei Bank, Limited

1,000,000－－

1,000,000

0.525%

Sep. 25, 2028

Shinkin Central Bank

3,000,000－－

3,000,000

0.663%

Jun. 4, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.447%

Dec. 27, 2027

Shinkin Central Bank

2,000,000－－

2,000,000

0.525%

Dec. 14, 2029

The Norinchukin Bank

1,000,000－－

1,000,000

0.604%

Jun. 5, 2025

The Norinchukin Bank

2,000,000－－

2,000,000

0.405%

Jun. 25, 2027

The Norinchukin Bank

2,000,000－－

2,000,000

0.525%

Dec. 25, 2028

The Norinchukin Bank

2,000,000－－

2,000,000

0.525%

Dec. 14, 2029

MUFG Bank, Ltd. (Green Loan)

47(Note 4)

Unsecured/
Unguaranteed

19

Financial Statements

LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current2023
2023
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Use

Remarks

Long-Term Loans Payable (Note 1)
Mizuho Trust & Banking Co., Ltd.

3,000,000－－

3,000,000

0.586%

Feb. 4, 2030

Mizuho Trust & Banking Co., Ltd.

2,000,000－－

2,000,000

0.606%

Mar. 29, 2030

Mizuho Trust & Banking Co., Ltd.

Dec. 24, 2030

2,000,000－－

2,000,000

0.675%

Aozora Bank, Ltd.

900,000－－

900,000

0.625%

Jul. 3, 2025

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.574%

Feb. 25, 2025

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.534%

Aug. 23, 2024

Aozora Bank, Ltd.

2,000,000－－

2,000,000

0.553%

Feb. 25, 2025

Aozora Bank, Ltd.

500,000－－

500,000

0.525%

Sep. 25, 2028

Aozora Bank, Ltd.

1,000,000－－

1,000,000

0.525%

Apr. 5, 2030

The Bank of Fukuoka, Ltd.

2,000,000－

2,000,000－

0.816%

Oct. 6, 2023

The Bank of Fukuoka, Ltd.

2,000,000－－

2,000,000

0.480%

Jul. 7, 2026

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.554%

Sep. 21, 2029

The Bank of Fukuoka, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030－

2,000,000－

2,000,000

1.183%

Oct. 6, 2031

Meiji Yasuda Life Insurance Company

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

Meiji Yasuda Life Insurance Company

3,200,000－－

3,200,000

0.813%

Jun. 21, 2028

Sumitomo Life Insurance Company

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.583%

Jul. 20, 2029

Sumitomo Life Insurance Company

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Shinkumi Federation Bank

4,000,000－－

4,000,000

0.358%

Aug. 5, 2027

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.525%

Dec. 14, 2029

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sep. 24, 2024

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.811%

Jun. 5, 2028

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.675%

Dec. 24, 2030

The Chugoku Bank, Ltd.

2,000,000－

2,000,000－

0.816%

Oct. 6, 2023

The Chugoku Bank, Ltd.

1,000,000－－

1,000,000

0.661%

Mar. 25, 2026－

2,000,000－

2,000,000

1.258%

Oct. 6, 2031

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.795%

Nov. 19, 2027

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Yamaguchi Bank, Ltd.

1,000,000－－

1,000,000

0.675%

Mar. 30, 2032

The Iyo Bank, Ltd.

1,000,000－

1,000,000－

0.816%

Oct. 6, 2023

The Iyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Bank of Fukuoka, Ltd. (GreenLoan)

The Chugoku Bank, Ltd. (Green Loan)

The Iyo Bank, Ltd. (Green Loan)－

1,000,000－

1,000,000

1.301%

Oct. 6, 2031

The Kiyo Bank, Ltd.

1,000,000－－

1,000,000

0.598%

Jan. 30, 2030

The Kiyo Bank, Ltd.

1,000,000－－

1,000,000

0.675%

Mar. 30, 2032

Sompo Japan Insurance Inc.

2,000,000－

2,000,000－

0.759%

Dec. 25, 2023－

2,000,000－

2,000,000

0.803%

Jun. 25, 2029

2,000,000－

2,000,000－

0.225%

Nov. 22, 2023－

2,000,000－

2,000,000

0.906%

Apr. 20, 2029

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.300%

Oct. 9, 2025

The Hachijuni Bank, Ltd.

1,000,000－－

1,000,000

0.310%

Sep. 24, 2026

The Yamagata Bank, Ltd. (Sustainability
Loan)

－

1,000,000－

1,000,000

0.781%

Jul. 4, 2031

The Yamagata Bank, Ltd. (Sustainability
Loan)

－

1,000,000－

1,000,000

0.491%

Jul. 5, 2028

The Yamanashi Chuo Bank, Ltd.

1,000,000－－

1,000,000

0.600%

Apr. 30, 2030

The Yamanashi Chuo Bank, Ltd.

1,000,000－－

1,000,000

0.600%

Apr. 5, 2032

Resona Bank, Limited

2,000,000－－

2,000,000

0.888%

Sep. 30, 2031

Sompo Japan Insurance Inc. (Green
Loan)
Nippon Life Insurance Company
Nippon Life Insurance Company (GreenLoan)

The Ashikaga Bank, Ltd. (Green Loan)
Kansai Mirai Bank, Limited
Bank of Kyoto, Ltd.
Bank of Kyoto, Ltd. (Sustainability
Loan)

20

－

1,000,000－

1,000,000

0.471%

Jul. 5, 2028

1,000,000－－

1,000,000

0.600%

Mar. 30, 2032

500,000－－

500,000

0.600%

Mar. 30, 2032－

500,000－

500,000

0.441%

Jul. 5, 2028

48

(Note 4)

Unsecured/
UnguaranteedFinancial Statements

LenderJapan Prime Realty Investment Corporation

Increase
Decrease
Balance as of
Balance as ofduringduringJuly 1,
December 31,
Current
Current2023
2023
PeriodPeriod(thousands(thousands(thousands (thousandsof yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Jul. 5, 2030

Use

Remarks

Long-Term Loans Payable (Note 1)
The Gunma Bank, Ltd. (Green Loan)－

1,000,000－

1,000,000

0.680%The Keiyo Bank, Ltd. (Green Loan)－

1,000,000－

1,000,000

0.491%

Jul. 5, 2028

The 77 Bank, Ltd.

1,000,000－－

1,000,000

0.543%

Nov. 30, 2028

Daishi Hokuetsu Bank, Ltd.

1,000,000－－

1,000,000

0.566%

Nov. 21, 2028

Daido Life Insurance Company

1,000,000－

1,000,000－

0.316%

Dec. 25, 2023－

1,000,000－

1,000,000

0.991%

Dec. 25, 2030

1,000,000－

1,000,000－

0.449%

Oct. 25, 2023－

1,000,000－

1,000,000

0.853%

Oct. 25, 2028

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000－－

1,000,000

0.443%

Dec. 27, 2027

The Hyakugo Bank, Ltd.

1,000,000－－

1,000,000

0.582%

Apr. 25, 2025

The Hiroshima Bank, Ltd.

1,000,000－－

1,000,000

0.566%

Nov. 21, 2028

Mitsui Sumitomo Insurance Company,
Limited1,000,000－－

1,000,000

0.310%

Oct. 2, 2026－－

1,000,000

0.691%

Mar. 25, 2026

18,500,000 13,000,000

169,500,000

Daido Life Insurance Company (GreenLoan)
The Chiba Bank, Ltd.
The Chiba Bank, Ltd. (Green Loan)

Sumitomo Mitsui Trust Bank Limited

1,000,000

Total

164,000,000(Note 1) Amounts of long-term loans payable to be repaid within five years after the date of the Balance Sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable

15,000,000

23,900,000

14,000,000

21,000,000(Note 4)

Unsecured/
Unguaranteed

Due after Four Years
through Five Years(thousands of yen)

23,200,000(Note 2) The average interest rates represent the weighted-averages during the fiscal period, and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
(Note 3) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 4) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redeeming
investment corporation bonds, etc.

49

21

Financial Statements

Japan Prime Realty Investment Corporation(8) Independent Auditor’s Report
Independent Auditor’s Report

The Board of Directors
Japan Prime Realty Investment Corporation

The Audit of the Financial Statements
OpinionWe have audited the accompanying financial statements of Japan Prime Realty Investment
Corporation (the Company) , which comprise the balance sheet as at December 31, 2023, andthe statements of income and retained earnings, changes in unitholders’ equity, cash
distributions, and cash flows for the six-month period then ended and notes to financial
statements, all expressed in Japanese yen.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as at December 31, 2023, and its financial performance andits cash flows for the six-month period then ended in accordance with accounting principles
generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company inaccordance with the ethical requirements that are relevant to our audit of the financial statements inJapan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Other Information
The other information comprises the information included in the Semi-Annual Report that
contains audited financial statements but does not include the financial statements and our
auditor’s report thereon. Management is responsible for preparation and disclosure of the otherinformation. The Supervising Officer is responsible for overseeing the Company’s reporting
process of the other information.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
50

Financial Statements

Japan Prime Realty Investment Corporation

Responsibilities of Management and Supervising Officer for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Supervising Officer is responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the financial statements is not expressing an opinion on the effectiveness of the Company’s
internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation in accordance with accounting principles
generally accepted in Japan.
We communicate with the Executive Officer regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
51

Financial Statements

Japan Prime Realty Investment Corporation

We also provide the Executive Officer with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the financial statements inJapan, and to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied to reduce threats to an acceptable level.

Fee-related Information
The fees for the audits of the financial statements of Japan Prime Realty Investment Corporationand other services provided by us and other EY member firms for the year ended December 31,
2023 are 14 million yen and 5 million yen, respectively.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company whichis required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Ernst & Young ShinNihon LLC
Tokyo, Japan
March 22, 2024

向出 勇治
Yuji Mukaide
Designated Engagement Partner
Certified Public Accountant

海上 大介
Daisuke Unagami
Designated Engagement Partner
Certified Public Accountant

52

Financial Statements

Japan Prime Realty Investment Corporation

OtherNotes
Notes(Information(Information only)
only)(9)(9)
Other

9.

(Property and Equipment Leased to JPR)
43rd Fiscal Period(January 1, 2023 – June 30, 2023)

44th Fiscal Period(July 1, 2023 – December 31, 2023)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
43rd Fiscal Period (January 1, 2023 – June 30, 2023)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Percentage of Numberof Investment Units
Held Among Total
Number of Investment
Units

Transactions

Transaction
Amount(thousands ofyen)Interested
party

Tokyo
TatemonoCo., Ltd.

Real estatebusiness

2.93%

Purchase ofreal estate

5,770,000

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business－Borrowing of
long-term loans
payableInterest
expenses(Note) Transaction terms are determined based on prevailing market conditions.

－21,422

Account－
Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)－

7,000,000
355

44th Fiscal Period (July 1, 2023 – December 31, 2023)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

Percentage of Numberof Investment Units
Held Among Total
Number of Investment
Units

－

(Note) Transaction terms are determined based on prevailing market conditions.

53

Transactions

Borrowing of
long-term loans
payableInterest
expenses

Transaction
Amount(thousands ofyen)－
21,777

Account

Long-term
loans
payableAccruedexpenses

Balance at End
of Period(thousands ofyen)

7,000,000
473

23