45th

Japan Prime Realty Investment Corporation
Presentation Material
For the Fiscal Period Ended June 2024
(Asset Manager) Tokyo Tatemono Realty Investment Management, Inc.

Table of Contents

1. Summary of Financial Results5

2. Operational Status and Growth Strategy

8

1. Internal Strategy

12

2. External Strategy

19

3. Financial Strategy

25

4. Sustainability

28

3. Financial Results and Operating Forecasts

35

4. Appendix

43

2

Overview of JPR■ Overview of JPR

Name

Securities code

Japan Prime Realty Investment
Corporation(abbreviated as JPR)
8955

Listing dateJune 14, 2002

End of fiscal
periodJune and December

Operational
standard of
portfolio(Targetinvestment
ratio)

Asset Manager

Sponsors(shareholding
ratio)(Ratio by area)
Tokyo 80-90%
Other cities 10-20%(Ratio by asset class)
Office 70-90%
Urban Retail etc. 10-30%
Tokyo Tatemono Realty
Investment Management, Inc.
(abbreviated as TRIM)

Tokyo Tatemono Co., Ltd. (100%)■ Characteristics of JPR（As of June 30, 2024）

track record of stable management for over 20
1 Ayears

Asset size

68 properties
525.8 bn. yen

JPR has steadily expanded its asset size while enhancing thequality of its portfolio.

robust portfolio focused on office properties in
2 ATokyo
JPR has established a portfolio that is focused on office properties inTokyo, which feature growth potential, with retail properties andoffice properties in regional cities to complement profitability.

3 Superiority pipeline of a developer-sponsored REIT
JPR has exerted its superiority as a REIT sponsored by Tokyo
Tatemono Co., Ltd. to acquire properties with excellent location
characteristics centering on large-scale development projects.

of internal growth through high level
4 Realizationof operation

Ratio by asset(Area) Tokyo 85.2%(Asset class) Office 81.9%

Acquisition price and ratio of
properties from sponsor pipelines

404.0 bn. yen 76.8%
Period-average Occupancy Rate
based on concluded contracts

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

of a financial base that is stable
5 Establishment
over the long term
JPR maintains an appropriate loan-to-value (LTV) ratio and a highand stable credit rating.
JPR has established a strong financial base by diversifying its
funding sources and repayment dates.

6 Commitment to sustainability

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

97.8%
Credit rating

JCR AA (stable)

R&I AA- (stable)

LTV

42.9%

GRESB Real Estate Assessment
5 Stars, the highest mark

CDP Climate Change Program
A (the Highest Evaluation)

3

Key Messages

1

Adjusted EPU for the fiscal period under review was 7,551 yen (up 174 yen period on period
and exceeding the initial forecast by 51 yen) contributed by Nakano Central Park East acquisition◼ Adjusted EPU forecasts: 7,520 yen for the December 2024 fiscal period as well as for the June 2025 fiscal period◼ JPR aims to achieve the currently targeted adjusted EPU of 7,600 yen in the June 2025 fiscal period mainly
through future external growth.

2
◼
◼

3

Reacting swiftly to changes in the market environment to drive internal growth by rent
increase
The vacancy rate in Tokyo CBDs decreased to 5% due to strong demand for offices.
JPR will request rent increases broadly by taking advantage of its portfolio and the market environment.

Engaging in strategic asset replacement to enhance the quality of the portfolio and generate capital gains◼ Enhance the quality of the portfolio by fully leveraging the sponsor pipeline.
◼ JPR generates capital gains against the backdrop of the active trading market.

4

Revised distribution strategy focusing on DPU growth rather than floor-based stability◼ DPU forecasts: 7,700 yen for the December 2024 fiscal period and 7,800 yen for the June 2025 fiscal period◼ JPR has shifted to a strategy focusing on the growth of distributions based on the recovery of the office market,
the active trading market and JPR's strengths.
◼ JPR aims to increase distributions with an eye on inflation, driven by rent increase, external growth and capitalgains (gain on sale and retained earnings).
4

1. Summary of Financial Results

5

1. Summary of Financial
Results(million yen)

Financial Results for the June 2024 Fiscal Period and Operating Forecasts

December 2023
Period Result

June 2024
Period Result

Period-on-period
comparison
Increase/
Rate of
Decrease
ChangeCompared with
forecast
Increase/
Rate of
Decrease
ChangeOperating revenue

17,411

17,644

+233

+1.3%

-51

-0.3%

Rental income-realestate

9,096

9,344

+248

+2.7%

+37

+0.4%

Operating income

8,151

8,354

+202

+2.5%

+45

+0.5%

Ordinary income

7,357

7,531

+173

+2.4%

+51

+0.7%

+51

+0.7%

±0

-%

Net income

7,356

7,530

+173

+2.4%

Distribution per unit*1

7,600

7,600

±0

-%

(yen)

December 2024
June 2025
Period Forecast Period Forecast

18,207

17,847+3.2%(period-on-period)-2.0%(period-on-period)

9,456

9,447

+1.2%
(period-on-period)-0.1%(period-on-period)

8,427

8,444

+0.9%
(period-on-period)+0.2%(period-on-period)

7,500

7,499

-0.4%
(period-on-period)-0.0%(period-on-period)

7,499

7,499

-0.4%
(period-on-period)-0.0%(period-on-period)

7,700

7,800

+1.3%

+1.3%
(period-on-period)(period-on-period)*1. Distribution per unit is calculated after adding or subtracting provision or reversal of reserve for reduction entry from each period's income.
Dec. '23 Period

Jun. ’24 period

Dec. ’24 period(Forecast)Jun. ’25 period(Forecast)

Reversal of reserve for reduction entry

221 million yen

47 million yen

178 million yen

278 million yen

Balance of reserve for reduction entry

4,418 million yen

4,370 million yen

4,192 million yen

3,913 million yen(Reserve for reduction entry per unit)(4,430yen)(4,383yen)(4,204yen)(3,924yen)

61. Summary of Financial
Results

Fluctuation in Distribution per Unit

Rental revenue is expected to recover in and after the June 2025 fiscal period based on the
progress in leasing led by MS Shibaura Bldg.
Adjusted EPU increased significantly contributed by Nakano Central Park East acquisition.
DPU is projected to be 7,700 yen for the December 2024 fiscal period and 7,800 yen for theJune 2025 fiscal period along with the revised distribution strategy.
Plus item

Minus item

（yen/unit）
Decrease in rent and common charge(move-in/move-out)-125
Increase in rent and common charge(rent revision, etc.)+24

Decrease in rent and common charge(move-in/move-out)-20
Increase in rent and common charge(rent revision, etc.)
+24

DPU

Adjusted
EPU

7,377

4

Decrease inincome fromrestoration
expenses/
cancellation
penaltyRents
andcommoncharge,etc.

Dec. ’23

60

52
308

Interest
cost

Income fromrestoration
expenses/
cancellation
penalty

Adjusted
EPU

Acquisition of
Nakano7,600

Increase in rent and common charge(move-in/move-out)+92
賃料・共益費等の増加(入退去) +92
Increasein rent and common charge
賃料・共益費等の増加(改定等)+40(rent revision, etc.)
+40

7,551

DPU

7,600

57

49

OthersUse ofinternal
reserves

Repairs
andmaintenance

86 117

101

369

169

DPU

7,800

DPU
Acquisitionof Nakano

Restoration
expenses

63

62
Interest
cost

Adjusted
EPU

7,700

7,520
130

180

132

OthersUse ofinternal
reserves

Rents
andcommoncharge,
etc.

Rents
and
commoncharge,etc.

Repairs
andmaintenance(excluding
restoration
expenses)
Restoration
expenses

398

92

Adjusted
EPU

280

7,520
39

Interest
cost

44
OthersUse ofinternal
reserves

169

Decrease inincome fromrestoration
expenses/
cancellation
penalty

Property
andother taxes

Jun. ’24 period

Dec. ‘24 period (forecast)Jun. ‘25 period (forecast)

1. Fluctuations in distribution per unit are shown as amounts calculated by dividing the amounts of changes in each fiscal period by the number of investment units outstanding as of the end of the fiscal period
preceding each such period.
2. "Adjusted EPU” is the amount of net income per unit less gains or losses on sales, etc.

7

2. Operational Status and Growth Strategy

8

2. Operational Status
and Growth Strategy

Growth Strategy

JPR will achieve sustainable growth by striking a high-level balance between
maximizing unitholder value and enhancing social value.

Implementation of comprehensive sustainability initiatives

成長ドライバーGrowthdrivers

JPR’s
strengths

Active rent increases
using portfolio
advantages

Continued external
growth utilizing thesponsor pipeline

Highly competitive portfolio
focused on favorably locatedoffice properties in Tokyo

Generation of capital gains throughstrategic asset replacement
Acceleration of unitholder returns

Superiority pipeline of Tokyo
Tatemono GroupHigh level of operational capability

9

2. Operational Status
and Growth Strategy

External Environment and Future Initiatives
Environment Recognition

Future Initiatives

Rent Market⚫ The vacancy rate decreased to 5% due to strong corporate
performance and demand for offices despite large supply.
(vacancy rate for existing properties：4.79%）⚫ Rents for properties in convenient locations and in someareas have already increased.

⚫ React swiftly to changes in the market environment byleveraging JPR's high-quality portfolio and achieve internal
growth through rent increase.
⚫ Lease out the MS Shibaura Bldg.

Trading
Market⚫ The trading market remains active largely due to domestic
investors' strong appetite for purchasing real estate andforeign investors’ steady demand.
⚫ Cap rates are unlikely to turn over despite concerns about
the impact of rising interest rates. The market is expected toremain active for the time being.

⚫ Acquire strategically located properties in Tokyo and major
regional cities fully leveraging the sponsor pipeline.
⚫ Accelerate strategic asset replacement, improve the qualityof the portfolio and generate capital gains.
⚫ Consider acquiring hotels which are achieving a fast
recovery backed by the growth of inbound tourism.

Interest Rate
Trend

⚫ The Bank of Japan decided to increase interest rates again in
its July meeting. The timing and frequency of interest rateincreases must be monitored going forward.
⚫ At the same time, it is expected that policy rates in the US
and Europe will be reduced.

⚫ Finance principally by long-term fixed-rate with a focus on
stability.
⚫ Monitor the financing environment and the gap between
short- and long-term interest rates to also consider longterm floating loans.
⚫ Continue to appropriately control LTV.

⚫ The TSE REIT Index currently remains low due to inflation,
the increase of interest rates, etc.

⚫ Revised distribution strategy focusing on DPU growthrather than floor-based stability⚫ Rent increase, external growth and capital gains are thegrowth drivers.
⚫ Consider capital policies such as the repurchase of treasury
investment units.

⚫ Initiatives for a sustainable society from a medium- andlong-term perspective are increasingly important.

⚫ Promote various initiatives to achieve the GHG emissions
reduction plan.
⚫ Focus on comprehensive initiatives, not just for theenvironment but also for society and corporate governance.

CapitalMarketSustainability

1. Figures of vacancy rates are as of July 2024, announced by Miki Shoji Co., Ltd.

10

2. Operational Status
and Growth Strategy

Change of the Distribution Strategy

Revised distribution strategy focusing on DPU growth rather than floor-based stability of DPU
7,600 yen in light of the office market recovery and the active trading market.
Targeting distribution growth of approx. 2% per year from 7,600 yen driven by rent increase,
external growth and capital gains.
Trend of Distribution per Unit and Image of Medium-term Growth(yen/unit)＜New Strategy＞
With an eye on inflation, aim for growth ofapprox. 2% per year starting from 7,600 yen,for the foreseeable future

Adjusted EPU*1
Use of gain on asset transfer/internal reserves

DPU
growth+200 yen（+2.6%）

7,800＜Previous Strategy＞

7,600

Capital gains(Use of gain on asset transfer/internal reserves)

7,700
Distributions
focusing on
stability by
setting floor（DPU 7,600 yen）

EPU
growth7,600
Rent increase
External growth＜JPR's strengths in executing strategies＞
7,551

7,520

7,520

7,377

Portfolio with competitive advantages allowing for early rent
increase endeavors
External growth capitalizing on sponsor pipelines
Accelerate unitholder returns by realization of unrealized gains
and use of internal reserves (unrealized gains: 130.4 billion
yen;*2 balance of internal reserves per unit: 4,383 yen*2)

Dec. '23

Jun. '24

Dec. '24

Jun. '25(forecast)(forecast)Consider the repurchase of treasury investment units inaddition to the above.

*1. "Adjusted EPU” is the amount of net income per unit less gains or losses on sales, etc.
*2. "Unrealized gains" and "balance of internal reserves per unit" are as of June 30, 2024.

11

2-1. Internal Strategy

12Features of Portfolio

2-1. Internal Strategy

JPR has built a robust portfolio diversified in terms of area, grade, asset class and rent zone, with a focus on
excellently located office buildings in Tokyo.
There is no office tenants with occupancy of 1.0% or more by tenants’ replacement.
Ratio by grade/asset class

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

Retail properties

6.9%

18.1%

S Class

Other cities

14.8%
A Class

11.7%
Greater Tokyo 9.8%
outside Tokyo’s
6.8% C Class
23 wards
10.0%
Land withleaseholdinterest

Less than
15 thousand yen

8.1%

11.2%
Chiyoda Ward

10.9%
17.1%

Tokyo’s
18 wards

Tokyo’s 23 wards

9.7%

39.9%

Shibuya Ward

Ratio by number of minutes walk fromnearest station(all properties, ratio of acquisition price)
Within5-10 minutes

9.0%
Within3-5 minutes

22.0%

Directly linked

75.6%

Focus on office buildings in rent zone 15 toless than 20 thousand yen per tsubo, which
are in highest demand

Tenant diversification(based on end users by property;
as percentage of area)
1.0％ or more
(Retail properties)

16.5%

23.2%
1.0％ or more

Within
1 minute(Sponsors, etc.,) 1.6%

27.5%

(Retail properties)

Less than 1.0％5.1%
Less than 1.0％
(Office)

Within
1-3 minutes

24.9%

12.4%
20 to less than
25 thousand yen

Shinjuku Ward

Well-balance regional diversification
with focus on Tokyo

Diversification of grade and asset class

25 to less than
30 thousand yen

23.3%

4.0% Minato Ward

18.2%

30 thousand yen
or more16.3%

15 to less than
20 thousand yen

15.1%

17.2%

B Class(office properties, ratio of acquisition price)

Chuo Ward

Great Tokyo
outside Tokyo’s
23 wards

18.6%

Office properties
in Other Cities

Ratio by Rent Zone

(all properties, ratio of acquisition price)

70.1%
69.0%

About 70% of properties are locatedWithin a 3-minute walk of the nearest station

Less than 1％
75.2%
No office tenants with occupancy of
1.0% or more.

1. 1. Ratio by Rent Zone (office properties, ratio of acquisition price) figures do not include Grand Front Osaka.

13

Occupancy Status

2-1. Internal Strategy

Occupancy remains at a high level.
Occupancy rate (the average occupancy rate as of the end of each month)

Major Move-Ins/Move-Outs■’24.12

Occupancy rate based on concluded contracts

96.9%

97.8%

97.0%

97.4%
95.8%

95.1%

95.5%

97.6%

96.4%

98.4%

97.8%

'21.12'22.6'22.12

'23.6

97.1%

96.8%

'23.12■’24.12(period)

96.0%

'24.6

-1,757

2,124

Shinjuku Square Tower-382 -813

813

JPR Dojima Bldg.

-862

739

JPR Sendagaya Bldg.

-817

Sencity Bldg.

'24.12 (period)(Forecast)* Excluding the impact of tenants’ move-outs of MS Shibaura Bldg., the occupancy rates based on
concluded contracts for ‘24.6 period and ’24.12 period (forecast) are 98.6% and 98.6%, respectively,
and the occupancy rates based on generated rents for ‘24.6 period and ’24.12 period (forecast) are
97.6% and 98.0%, respectively.

Average free rent periodMove-ins

Olinas Tower

96.9%*Impact of move-outsof MS Shibaura Bldg.

'21.6■’24.6Move-outs

Occupancy rate based on generated rents

98.2%■’24.6-1,596BYGS Shinjuku Bldg.

-95 733 95
-718

742

-9,805

MS Shibaura Bldg.

5,882

Status of move-ins and move-outs（month）

Move-in spaces

Occupancy rate

6

Move-out spaces

Move-out rate（㎡）

20,000

4

3.7

3.5

4.3
2.7

3.7

2.5

2.6

1.6

'22.12'23.6'23.12

'24.6

-3.8

2.1

6

2.0

3

-2.9

-3.9

-2.5

-1.8

-1.2

-3

-1.4

-6

-3.6
Impact of MS Shibaura Bldg.
move-outs: -2.1

(period)'21.6
1. Only figures for occupancy rate based on concluded contracts include Grand Front Osaka.

1.7

0-10,000-20,000

'22.6

2.5

0

3.1

0
'21.12（%）

4.2

10,0002（㎡）'21.12'22.6'22.12'23.6'23.12'24.6'24.12 (period)(Forecast)14

Leasing Status of MS Shibaura Bldg.

2-1. Internal Strategy

The flexible leasing strategy and the increase of competitiveness by large-scale improvements
proved successful.
Leasing is steadily in progress by catering to the demand for relocation from neighboring areas.
Overview of the property and the trend of the occupancy rate
MS Shibaura Bldg.

CentralTokyo

Office・ A large building with 600 tsubo per floor, located an 8-minute
walk from JR Tamachi Station.
・ Strengthen property competitiveness through large-scale
refurbishment (installation of LED lighting, improvements to air
conditioning and common areas).

Concluded contract (from October 2024)

・ Successfully captured relocation demand from neighboring areas

7F

Occupied・ Equipped self-propelled and mechanical parking

6F

Under negotiation

Occupied・ Highly convenient for delivery of goods with the cargo handlingspace in the elevator hall on the first basement floor

5F

Occupied

Under negotiation

Remain ofapprox. 600 tsubo

Move-outs ofapprox. 3,000 tsubo

100%

The section of the tenants moved out
8F

Refilled approx. 2,400 tsubo

Dec. ‘23◼ Despite tenants vacating five floors (approx. 3,000 tsubo), three floors(approx. 1,800 tsubo) have been refilled. One of the remaining floors isin the process of finalizing the contract, and for the last remaining floor,
there are some potential tenants considering to rent.

Jun. ‘24

32.2%

Oct. ‘24

45.8%

Nov. ‘24

Mar. ‘25

72.9%

86.4%
(Planned)F

In the process of finalizing the contract (from March 2025)

3F

Concluded contract (from November 2024)

2F

Concluded contract (from November 2024)

1F

Occupied※ The contract start date is shown in parentheses.

Implementation of large-scale refurbishment◼ Repair of air conditioners and replacement of lighting with LEDs were conducted in addition to the beautification of common areas

15

Status of Rent

2-1. Internal Strategy

The contracts with most of the tenants have been renewed without a downward revision.
Proportion of rent increase on both rent revision and tenant replacement increased.
Areas where upward rent revisions are occurring are also expanding.
Ratio of Increase/Decrease on Rent Revision/
Tenant Replacement (% of Total Contracts)

Monthly Rent Revision Increase/ Decease
Upward revision(tenant replacement)

Upward revision(existing tenant)(million yen)

■ Rent revision

Downward revision(existing tenant andtenant replacement)■ Tenant replacement

Upward revision
Decrease in rent

No change

Upward revision
Decrease in rent

(period)

40

'22.6

20
0

2.9

3.7

6.7
-6.8

4.3
-6.1

1.3
1.7

0.8
2.9

2.7
0.8

-3.6

-9.7

-9.0

3.6

8.9

2.8

-5.7

-5.4

15.8

82.6

1.6

'22.12 12.1

85.5

2.4

32.4

83.5

3.8

28.6

'23.6

12.6

'23.12

6.0

'24.6

16.7

89.0

No change

8.5

45.8

45.8

17.6

50.0

16.7

4.9

40.0

1.9

42.9

54.8

10.0

50.0

-20

-40
'21.12'22.6'22.12'23.6'23.12'24.6'24.12 (period)(Forecast)Status of Gap in Rent (Office）

0

50

25.7

100 (%) 0

31.4

50

100 (%)Breakdown of Areas Subject to Rent Increases (% ofTotal Contracts, Office)Area for rent increase tends to expand. Negotiations to further
revise rents upward are continuing in the Dec. ‘24 period.

（%）

+4.0

■Jun. ‘24 period
+1.4

+2.0

+1.3

+0.7

+0.5

Other Cities

16.1%

+0.0
-2.0

81.3

-0.6

Shinjuku
Ward

16.1%

■Dec. ‘24 period

Chuo Ward

3.2%

-0.4

Other Cities

Shibuya
Ward

25.0%

18.8%
Chuo

12.5% Ward
Greater Tokyo

-4.0

1.
2.
3.
4.

'21.12'22.6'22.12'23.6'23.12

'24.6

64.5%
(period)

Greater Tokyo
37.5%

6.3%

MinatoWard

Rent gap figure is only figure including Grand Front Osaka.
Forecast of monthly rent increase/decrease (forecast increase) for Dec. ’24 period is sum total of upward or downward revisions and increases or decreases in rent upon tenant replacement.
Figures for rent revisions and tenant replacement for Dec.’ 24 are as of August 16, 2024.
Figures for “Breakdown of areas subject to rent increases” are excluding The Otemachi Tower (Land with Leasehold Interest).

16

Initiatives to Increase Rent

2-1. Internal Strategy

Aim for rent increase at an early stage by requesting upward rent revisions broadly, taking
advantage of JPR’s portfolio and the market environment.
Improvement ofoffice rent market

Portfolio mainly of favorably
located properties and effective
value-up construction

Superiority of contract type
and tenant area band

The vacancy rate has decreased due tostrong demand for offices.
Meanwhile, selection based on locationand quality is being implemented.

Robust portfolio mainly offavorably located properties close
to train stations, which meettenant needs.

Mostly ordinary rental contracts with
an opportunity for rent revision every
other year; there are many
opportunities for rent increase.

Minutes walk fromnearest station
within 5 minutes

Proportion of ordinary
rental contracts

91.0%

81.7%

Trend of vacancy rate in Tokyo CBDs*1（yen）
and average of rent
（%）
7.00

20,20020,0006.00
19,8005.00

19,600
Apr.'23

Jul.'23

Oct.'23

Vacancy rate/(％)

Jan,'24.

Apr.'24

Jul.'24

Average rent/(yen/tsubo)

The most important condition necessary
for office selection is location.
The importance of comfort is also high.
Level of importance when considering *2
where to relocate

××
Improve comfort and satisfaction
through value-up construction in linewith tenant needs.
JPR Yokohama Bldg.

JPR Harajuku Bldg.

Low proportion of large tenants requiring
relatively long negotiation times.
Breakdown of tenants by area band *3(% of Total Contracts, Office)300 to less than
500 tsubo

9.1%
6.2% 500 tsubo

LocationCostor moreComfortBYGS Shinjuku Bldg.

Elevator

JPR Omiya Bldg.

100 to less than
300 tsubo

27.5%

Parking
Co-working
space■Very importantLess than
100 tsubo

57.2%■Important■Not important■Not so important■No answer

Tenants renting
less than 300 tsubo

84.7%*1. Prepared by TRIM based on data published by Miki Shoji Co., Ltd.
*2. Prepared by TRIM based on data published in “2023 Japan Office Occupier Survey Office Strategies in the Age of Human Capital Management,” CBRE.
*3. Excluding the Otemachi Tower (land with leasehold interest) and Grand Front Osaka

17

Retail Property

2-1. Internal Strategy

Maintain high occupancy
Street stores are newly openedin Shibuya・Harajuku area

Average occupancy rate (Retail properties)

99.5

99.9

99.7

99.5

99.6

99.7

'21.12'22.6'22.12'23.6'23.12'24.6 （period）

（%）

100.0

Attracted the tenants to street stores in the Shibuya ・ Harajuku area, aculture hub
JPR Jingumae 432
JPR Harajuku Bldg.

90.0

80.0

Status of lease contract (Retail properties, Space ratio)
Services

Main retail properties

Other

Commission

3.6%

0.7%
Retail90.4%

Type of rent

Fixed rent

Urban type

Fixed rent
and
4.6%
commission

3.0%

3.0%

The only shop in Japan of Italian luxury
sport wear brand was opened

Type of rent

Tenant sectors

Bars &
restaurants

Flagship shop of “SNKR DUNK,” the largest
sneaker & trading card flea market in Japan

94.7%

JPR Shibuya
Tower Records Bldg.

Remaining contract periodLess than
2 years

16.8%

19.3%

2 years or more andless than 3 years

9.8%
Ordinarybuilding lease

83.2%

3 years or more andless than 5 years

17.3%

5 years or
more

53.7%

JPR Ginza Namikidori Building

FUNDES
Tenjin Nishidori

FUNDES Ueno

Station-front
type

Fixed term
building lease

JPR Chayamachi
Bldg.

Kawasaki DICE Bldg.

Tanashi ASTA

JPR Musashikosugi
Bldg.

Housing Design Center
Kobe

18

2-2. External Strategy

19

Acceleration of pace of property acquisitions utilizing sponsor pipeline

2-2. External Strategy

The pace of expansion in JPR‘s asset size accelerated, partly due to the Medium-Term Business Plan ofTokyo Tatemono, which is the sponsor.
Achieved assets of over ¥500 billion.
Tokyo
TatemonoCo., Ltd.

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

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

Key Strategies (excerpt)

Further expansion of Group AUM and profit opportunities

Expand property sales toinvestors

Total investment amount: 170.0 billion yen

Strengthen fund business

AUM, including affiliated REITs: 1.5 trillion yen (forecast of 2024)(as of the end of June 2024)*1

Changes in asset size
Growth from 2020:
86.3 billion yen(100 million yen)

5,500

(Acquisition: 113.3 billion yen Sale: 26.9 billion yen)

Growth between 2016 and 2019:29.2 billion yen
5,000(Acquisition: 41.4 billion yen Sale: 12.2 billion yen)

4,848

JPR

4,571
4,500

4,350 4,350 4,350 4,350

4,922 4,887

5,258

4,970 4,970

4,675 4,656

4,395 4,395

4,214
4,103 4,103
4,000

3,500
Dec. '15
PeriodJun. '16 Dec. '16 Jun. '17
PeriodPeriodPeriodDec. '17 Jun. '18 Dec. '18 Jun. '19
PeriodPeriodPeriodPeriodDec. '19 Jun. '20 Dec. '20 Jun. '21 Dec. '21 Jun. '22
PeriodPeriodPeriodPeriodPeriodPeriodDec. '22
PeriodJun. '23
PeriodDec. '23 Jun. '24
PeriodPeriod

*1. Balance of real estate for sale except for logistics properties in commercial properties business of Tokyo Tatemono Co., Ltd. (Total investment amount)20

Continuous implementation of asset replacement strategy

2-2. External Strategy

Improve portfolio quality, realize unrealized gains and generate free cash through strategic asset
replacement
2020
Property to beacquired

JPR
Shinsaibashi West
Sponsorpipeline

2021

Sencity Bldg. Otemachi Financial
City North Tower
Sponsorpipeline

3.75 billion yen 13.87 billion yen

Sponsorpipeline

11.4 billion yen

Rise Arena Bldg.
(Additional
ownership)preferential
negotiationrightsSponsorpipeline

7.3 billion yen

Assetreplacement

Assetstransferred

JPR Hakata Bldg.
SponsorShinjuku Center
Bldg. (Additional
ownership)

Sponsorpipeline

21.3 billion yen

Sponsorpipeline

11.3 billion yen

Asset

資産 replacement
入替Tokyo Tatemono
Honmachi Bldg.

JPR Umeda Loft Bldg.

Sponsor

Building age
36 years

2023

2022
Tokyo Tatemono
Grand Front Osaka Higashi-Shibuya
Bldg.

Building age
52 years

Building age
32 years

JPR
DojimaWest

FUNDES Tenjin
Nishi DoriSponsorpipeline

Sponsorpipeline

2024
Nakano Central Pak East

Ochanomizu
Sola City

Sponsorpipeline

Sponsorpipeline

3.32 billion yen 2.46 billion yen 3.31 billion yen

6.49 billion yen

Assetreplacement

Asset
replacement

Gotanda First Bldg.

JPR Crest
Takebashi Bldg

SponsorSponsor

Building age
33years

Building age
24 years

28.8 billion yen

Continue strategic asset replacement

Effect of asset replacement since 2020

<Purpose of the strategic asset replacement>◼

Improvementof portfolio
quality

Sell properties whose future profitability is expected todecrease due to aging, and acquire properties that willcontribute to the improvement of portfolio quality (age,profitability, location, etc.) from medium- and long-term
perspectives.

Realizationof unrealizedgains

In addition to returning capital gains to unitholders,increase internal reserves intended to secure funds forstable distributions in the future.

Effective
utilization ofgain on saleExamine their effective utilization, comprehensively
considering trends in the real estate trading market,
investment unit price, LTV level, etc.
E.g., property purchases, the purchase of treasury
investment units or the repayment of borrowings

Expanded size of assets and also achieved improvement in portfolio quality
and expansion in retained earnings.
*2

Expansion in size of
assets *1

Improvement in
NOI *2Gain on transfer
posted *3+86.3 billion yen+3.0 billion yen

5.5 billion yen

Expansion of *1
retained earnings*1+3,637 yen/unit

Rejuvenation of
portfolio *4
Assetstransferred

34 years

Property to beacquired

16 years*1. Figures are based on a comparison at the end of the December 2019 fiscal period and the end of the June 2024 fiscal period, respectively.
*2. Calculated by deducting total appraised NOI at the time of transfer of assets transferred since 2020 from total appraised NOI at the time ofacquisition of assets acquired since 2020.
*3 This is the figure obtained by subtracting the loss on the sale of real estate from the gain on the sale of real estate from 2020 onward.
*4. Based on average building age calculated by averaging building ages as of the acquisition date in the case of acquired assets and the transfer datein the case of transferred assets and weighting the average based on the acquisition price.

21

2-2. External Strategy

Summary of Newly Acquired Property

Nakano Central Park East（Ownership interest 53.0%）

Greater Tokyo

OfficeBased on information provided by sponsors

JPR acquired, with its sponsor's support, a high-spec building developed by Tokyo Tatemono, in front of Nakano
Station where further growth is expected.
Acquisition Highlights◼ Located a five-minute walk from Nakano Station, which is on the JR Chuo and Sobu Lines andTokyo Metro Tozai Line. Situated beside Nakano Shiki no Mori Park, the office space looks out ona huge expanse of open greenery, incorporating the surrounding environment through the
integrated development of the park with public spaces.

Acquisition date

March 1, 2024

Acquisition price28,800 million yen

Appraisal value

30,100 million yen

Total rentable area/
floors13,523.68㎡/
B2/10F

Type of Ownership

Land: Ownership (quasi-coownership interest of 53.0%)
Building: Ownership (quasi-coownership interest of 53.0%)

building age

12 years

NOI yield*1

3.2%

After-depreciation
yield*1

2.8%◼

A high-spec building developed together with Nakano Central Park South. With Tokyo Tatemono
handling everything from development to area management, and continuously engaged in therevitalization of the entire area. The building is equipped with high performance features such asa seismic isolation structure in view of BCP.

◼

The area around Nakano Station is expected to increase in competitiveness as an office district
following multiple large development projects. The installation of new station ticket gates will
reduce the property’s distance to the station to a three-minute walk, substantially increasing
convenience.

◼

There is a certain degree of rent gap, and an increase in market rents can be fully expected. JPR
plans to aggressively aim for upside gains.

Map of Surrounding Area

Status of the occupancy rate*2■ Proximity to Nakano Station■ Completed the leasing shortly after the acquisition,and favorable location

with the property’s high competitiveness
100%
96.7%
92.8%

Acquired

2024/32024/62024/12(Planned)*1. “NOI yield” and “after-depreciation yield” are figures calculated based on the net operating revenues indicated in the appraisal report.

*2. Figures are based on the contracts closed.

222-2. External Strategy

Status of the development projects around Nakano Station

Multiple large-scale development projects are underway in the Nakano Station area, which is expected to
become more competitive as an office district.
Access to the property will further improve with the entry into operation of Nakano Station's new ticket gate
and the construction of a pedestrian deck in 2026.
Illustrative map of the redevelopment of the Nakano area *Nakano Central
Park East

1

Approach to the property from plannedpedestrian deck*1
Nakano Central
Park East

Pedestrian Deck

Approach to planned pedestrian fromentrance to the property*1*1. Prepared by TRIM based on publications of Nakano Ward23

Sponsor Pipeline

2-2. External Strategy

Actively capitalize on sponsor pipeline to expand acquisition opportunities
Tokyo Tatemono's pipeline

Utilization of sponsor pipelines

Real estate for long-term ownership reclassified as real estate for sale

■ Breakdown of owned properties by seller *1■Properties reclassified as real estate for sale
Between the end of December 2018 and the end of December 2023:
Approx. 54.0 billion yen■Properties acquired by JPR
JPR Kojimachi Bldg.

5.75 billion yen

Acquired June 2019

JPR Shinsaibashi West3.75 billion yen

Acquired January 2020

Otemachi Financial City North Tower

11.4 billion yen

Acquired December 2020

Grand Front Osaka

21.3 billion yen

Acquired December 2021

Tokyo Tatemono Higashi-Shibuya Bldg.

11.3 billion yen

Acquired January 2022

Real estate for sale developed/acquired on the assumption of sale

Properties acquired otherthan from sponsors
121.7 billion yen

23.2%

Properties
acquired basedon information
provided bysponsors
121.3 billion yen

53.8%
23.1%

Properties
acquisition fromsponsors
282.6 billion yen

Properties
acquired using
sponsor pipelines

76.8%*1. JPR makes decision based on circumstances at the time of acquisition.
*2. Figures are at the end of the June 2024 fiscal period.

■ Top 6 portfolio properties■ Medium-sized office
T-PLUS Sapporo

December 2023

Completed

T-PLUS Sendai

January 2024

Completed

March 2024

Completed■ Urban compact retail properties
FUNDES Kamata■ Urban hotel
Candeo Hotels Tokyo Roppongi

September 2017

Completed

The Square Hotel Ginza

August 2018

Completed

Hotel Gracery Asakusa

September 2018

Completed

Candeo Hotels Kyoto Karasuna Rokkaku

March 2021

Completed

Otemachi Tower (Landwith Leasehold Interest)
36.0 billion yen

Olinas Tower
31.3 billion yen

Nakano Central Park East
28.8 billion yen

Shinjuku Center Bldg.
24.3 billion yen

Grand Front Osaka
21.3 billion yen

Tokyo Square GARDEN
18.4 billion yen■ Properties acquired by JPR
FUNDES Suidoubashi

3.25 billion yen

Acquired December 2016

FUNDES Ueno

3.8 billion yen

Acquired June 2019

FUNDES Tenjin Nishi Dori3.31 billion yen

Acquired January 2023

JPR Dojima West2.46 billion yen

Acquired January 2023

All properties developed by Tokyo Tatemono242-3. Financial Strategy

25

2-3. Financial Strategy

Financial Status

Finance principally by long-term fixed-rate with a focus on stability. Consider long-term
floating loans.
Debt procurement results in the June ‘24 fiscal period(short-term loans excepted)
Beforerefinancing
Amount raised

Funding

Increase/
Decrease

12.0 billion yen 20.0 billion yen +8.0 billion yen

Diversification status of repayment dates （as of August 16, 2024）（100
200
millionyen）

150

Average maturity

9.0 years

5.8 years-3.2 years

100

Average debt
interest rate

0.84%

0.93%

+0.08pt

50

80 30

40

30

30
85

130
80

Investment corporation bonds

109 100

Short-term loans payable
Commitment limit
24.0 billion yen

60

50

14
130 140112

130 136

158
100

100

130

130
90

40

Dec. ’23

Jun. ’24

Period-onperiod
comparison

205.4

230.4

+25.0

billion yen

billion yen

billion yen

40.2%

book value

42.9%+2.7pt

LTV
32.2%

34.5%

+2.4ptAverage maturity

4.5 years

4.0 years-0.4 years

Average debt cost

0.76%

0.76%

±0.0ptRatio of long-term,
fixed interest rate
debts

100.0%

92.6%-7.4ptStatus of rating
JCR

R&I

AA （Stable）

AA- （Stable）

10

30 10

(period)

Change in LTV(%)

Control, aiming for maximum LTV of 40-45%

45
Debt acquisition capacity:
Approx. 20.0 billion yen

43
41

appraisal value

20

0

Status of interest-bearing debts

Interest-bearingdebt

Long-term loans payable

41.7

39
'21.12

40.0

40.0

40.3

40.2

'22.6

'22.12'23.6'23.1242.9'24.6 (period)

Consideration of long-term floating loans(up to 20% in interest-bearing debt)• Consider long-term floating loans while monitoring the financing
environment and the gap between short- and long-term interest rates.
• Maintain the average of remaining years by actively using loans withterms of 7 years or longer, while taking advantage of the difference
between short- and long-term interest rates.
• Diversify financing methods to both control costs and ensure financial
soundness.

26

Diverse Status of Lenders (as of August 16, 2024)

2-3. Financial Strategy

Diversify fund procurement sources with a lender formation comprising 43 financial institutions andthrough issuance of investment corporation bonds. Cost control through negotiated debt procurement
Sustainability Financing, etc., accounts for 31% of the interest-bearing debts(Status of Sustainability Finance, etc.,)
Sumitomo Mitsui Trust Bank, Ltd.

1.0

Mitsui Sumitomo Insurance Company, Ltd.

1.0

The Fukui Bank, Ltd. 【New】

1.0

Hiroshima Bank, Ltd.

1.0

The Hyakugo Bank, Ltd.

1.0

Tokio Marine & Nichido Fire Insurance

1.0

The Chiba Bank, Ltd.

1.0

Daido Life Insurance Company

1.0

Daishi Hokuetsu Bank, Ltd.

1.0

The 77 Bank, Ltd.

1.0

Shiga Bank, ltd. 【New】

1.0

The Keiyo Bank, Ltd.

1.0

The Gunma Bank, Ltd.

1.0

Bank of Kyoto, Ltd.

1.0

Kansai Mirai Bank, Ltd.

1.0

The Ashikaga Bank, Ltd.

1.0

Asahi Shinkin Bank 【New】

1.0

The Yamanashi Chuo Bank, Ltd.

2.0

The Yamagata Bank, Ltd.

2.0

The Hachijuni Bank, Ltd.

2.0

Nippon Life Insurance Company

2.0

Daiwa Next Bank, Ltd. 【New】

2.0

Sompo Japan Insurance Inc.

2.0

The Kiyo Bank, Ltd.

2.0

The Iyo Bank, Ltd.

2.0

Yamaguchi Bank, Ltd.

3.0

The Chugoku Bank, Ltd.

3.0

Taiyo Life Insurance Company

3.0

The Nishi-Nippon City Bank, Ltd.

4.0

The Shinkumi Federation Bank

4.0

Investment corporation
bonds
30.9

Mizuho Bank, Ltd.
24.0

Bridge loans

MUFG Bank, Ltd.

11.0

21.0

Mitsui Banking
Interest-bearing Sumitomo
Corporation
15.0
debt
230.4 bn. yen Development Bank ofJapan, Inc.
12.9
SBI Shinsei Bank, Ltd.
12.0
Resona Bank, Ltd.
10.0
Aozora Bank, Ltd.
8.4

Sumitomo Life
Insurance Company 4.0
Meiji Yasuda Life Insurance
Company 4.2

Shinkin Central Bank 7.0
The Norinchukin Bank 7.0
Mizuho Trust & Banking Co., Ltd. 7.0
The Bank of Fukuoka, Ltd. 6.0

Fund procurement

Amountprocured

Sustainability bonds

1.4

Sustainability loans

3.1

Green bonds

12.0

Green loans

54.0

Total

70.5

Ratio in the total interestbearing debt

31％

(Status of commitment line)
LenderCreditlimit

Mizuho Bank, Ltd.

4.0

MUFG Bank, Ltd.

4.0

Sumitomo Mitsui Banking
Corporation

4.0

Mizuho Trust & Banking Co., Ltd.

4.0

Aozora Bank, Ltd.

4.0

Resona Bank, Ltd.

4.0

Total

24.0

(Break down of Bridge loan)
LenderBalanceMizuho Bank, Ltd.

8.0

Mizuho Trust & Banking Co., Ltd.

3.0

Total

11.0

27

2-4. Sustainability

28

Sustainability Initiatives

2-4. Sustainability

Commit to sustainability for the long term.
Actively implementing sustainability initiatives for diverse stakeholders based on Sustainability
PolicyJPR Initiative
TRIM Initiative2005- Mar. 2019

Began issuing Sustainability Report.

- Jul. 2020

Participated in CDP Climate Change Program.

- Dec. 2020

Acquired BELS certification for the first time.

- Mar. 2021

Determined materialities (JPR/TRIM).

- Mar. 2021

Set 2030 target rate for reducing water use.

- Aug. 2021

Set target of reducing GHG emissions to netzero.

- Apr. 2019

Established Sustainability Committee.

- May 2019

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

- May 2021
- Jul. 2021

Declared support for TCFD.
Enacted Human Rights Policy.

- Jul. 2021

Enacted Sustainable Procurement Standards

2019

2022

- Jan. 2024

ARES ESG AWARD 2023
Received Good Action Award, GovernanceCategory- Feb. 2024

Selected as CDP Climate Change "A List"
company for the first time

- Feb. 2024

Reviewed green certification acquisition rate
targets (2030 and 2050 targets)- Apr. 2024

Set 2030 target of a waste recycling rate of
70% (in principle, for properties for which JPR
has management authority)- Apr. 2024

Re-evaluation of climate change risks andopportunities

2024- Aug. 2005

Launched Tenant Satisfaction Survey.

- Sep. 2022

Acquired ZEB certification for the first time.

- Jan. 2006

Formulated brand strategy.

- Nov. 2022

- Oct. 2006
- Aug. 2011

Launched Best Performance Award.
Acquired DBJ Green Building Certification for
the first time.

Established GHG emission reduction plan and submitted to
SBTi.

- Jan. 2023

Updated materialities (JPR/TRIM).

- Apr. 2023
- Jun. 2023

Achieved certification by SBTi
(GHG emissions reduction target for 2030
and net zero emissions target for 2050)
Conducted transition risk analysis using CRREM- Jan. 2022

Welcomed outside advisor to Sustainability Committee.

- Feb. 2022

Became signatory to the Principles for Financial Action for the
21st Century.

- Feb. 2023

Externally recruited special committee member (real estateappraiser) to Investment Committee.
Set 2030 target for percentage of female managers- Sep. 2013

Achieved "Green Star" status for the first timein GRESB Real Estate Assessment.

- Jun. 2018

Acquired CASBEE for Real Estate Certification
for the first time.

- Dec. 2015

Launched Employee Satisfaction Survey.

- Apr. 2017

Launched employee awards program.

- May 2017

Enacted Sustainability Policy.

- Aug. 2023

29

2-4. Sustainability

External Evaluations and Initiatives

Focus on improving external evaluations and becoming a signatory to/supporting initiatives.
Green certification

External Evaluations
GRESB Real
Estate Assessment

CDP Climate
Change Program

MSCI ESG Credit Rating*1

A

5 Stars（the highest mark）

BELS certification and
ZEB certification
Certification
4
properties

Certification
44
properties（the Highest
Evaluation）

for fifth
consecutive
year

CASBEE Certification

Rank upto A score*1. 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 a sponsorship, 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 orservice marks of MSCI.

Initiatives
PRI

TCFD

SBTi

（Principles of Responsible
Investment）（Task Force on Climate-related
Financial Disclosures）(Science Based Targets initiative)

1 property
certified as
ZEB Oriented(JPR Omiya Bldg.)

Certificationacquisition rate

DBJ Green Building
Certification（ 4-star/"A" rating or higher ）Certification
14
properties

76.4％

Health ＆ Productivity Management(TRIM)（TRIM）

United Nations Global
Compact

Principles for Financial
Action for the 21stCentury

Participated as
the Tokyo
Tatemono Group

Health ＆Productivity
Management Organization
Recognition Program

Healthy company
declaration(TRIM)(TRIM)(Signed by Tokyo
Tatemono)(TRIM)

30

2-4. Sustainability

Environment

Set a new target waste recycling rate and examined a strategy for renewable energy procurement to
reduce environmental load.
Shifted to a phase of accelerating various measures to reduce greenhouse gas (GHG) emissions withan eye on financial impact.
Progress on target for green certificationacquisition rate (based on total floor area)

Set targets for waste recycling rate◼

Promote the sorting of waste materials and the improvement ofrecycling as one way to reduce environmental load.

◼

Newly acquired certifications for two properties in the Jun. ‘24 fiscal
period◼

Set a new target for 2030 to strengthen and expand initiatives.

◼

Promote and plan to acquire certifications to achieve goals◼

Specific initiatives• Initiatives to provide information to property management companies and local
building managers• Request tenants’ cooperation

2030 Target： 90％ of 4 Star/”A”
rating or higher
All ranks

(%)

88.7

100

• Consider the placement of sorting trash cans at JPR's expense

80(in principle, for properties for which
JPR has management authority）

Overall

57.3％

Scope ofcoverage

48.9％

60
40

4 Star/”A” rating or higher
89.4

88.1

77.4

76.4

2023

2024.6

74.3

Recycling rate in 2023

Waste recycling rate by 2030: 70％

2050 Target：100% of 4 Star/”A”
rating or higher

71.8
49.3

0
20

2021

2022

(year)

1. Coverage rate has temporarily declined due to new property acquisitions.

Examination of renewable energy procurement strategies◼

◼

◼

Use external consultants and consider the development of a strategy forrenewable energy procurement considering the characteristics of the portfolio toachieve the targets of reducing GHG emissions 46.2% by 2030 (compared to2019) and achieving net-zero emissions by 2050.
As factors affecting price volatility, physical corporate PPAs (CPPAs) are affectedby the market price of electricity at the time the contract is signed and non-fossil
certificates are affected by their environmental value based on supply anddemand. However, it was confirmed that a certain risk diversification effect can be
expected by balancing the different factors in price volatility.
A combination of physical CPPAs and the purchase of non-fossil certificates is
expected to be effective in the procurement of renewable energy. JPR willconsider a plan to procure renewable energy going forward.

• Simulation of procuring renewable energy through solar power
generation (physical CPPAs)
Office properties• Surplus energy tends to be generated on
Saturdays, Sundays and public holidays.
• Surplus energy tends to be generated fromMarch through May due to a decrease in
the use of air-conditioners.
• The effect of installation is high for large
buildings.

Retail properties• The difference between consumption on
weekdays and weekends is not significant.
• In some cases, surplus energy is generated
at the beginning of solar power generation(in the morning).

If the procurement of renewable energy through solar power generation is to be used,
installation is believed to be feasible if the value is 15% to 20% of all energy consumption.

31

Environment

2-4. Sustainability

GHG emissions have been steadily reduced to achieve the 2030 target.
Reduce energy and water consumption by implementing energy saving construction and working
with property management companies (PM), local building managers (BM) and tenants.
Environmental performance data
GHG Emission

2030 Target：46.2％ reduction (compared to 2019)2050 Target：Net zero
Scope1

Scope2

Energy Consumption

Scope325.7％
reduction(t-CO₂)80,000Electricity

Heat

Gas, etc.

119,712122,106

2020

2021

(MWh)

140,000(compared to base year)

120,000
60,000100,000
74,931

70,56940,00068,96280,00061,08860,00055,694

122,803

40,00020,000128,154

126,969

2022

2023

20,00000
2019(Base year)

2020

2021

2022

Total (left axis)

Intensity (right axis)

(㎥)

11.8％
reduction
0.740

0.654

0.720

(㎥/㎡)

0.9
0.8
0.7

0.624

400,000

0.6

0.5
537,691
200,000

444,263422,704

480,162

504,819

0.4
0.3
0.2
0.1

0

0
2017

2020

2021

2022

2023

(year)

LED Lighting Ratio(compared to base year)

0.838

2019

(year)

2030 Target：10% reduction per floor area(compared to 2017)

Water Use

600,000

2023(year)

Exclusive-use areas

(%)

100

86.1

90.0

Common areas
94.1

96.3

80
78.8

60
40

69.8
59.2
49.1

20
0
2021

2022

2023

2024.6(year)(Base year)32

2-4. Sustainability

Environment

Re-estimated the quantitative analysis of climate change risks and opportunities in the periods
up to 2030 and 2050.
The future strategy will be re-examined in light of financial impact.
Quantitative analysis of climate change risks and opportunities

Type of risks

risks
and
opportunities

Risks

Policy andregulations

Financial Impact（Based on operating revenue）
Category

Transition
Risks and Opportunities

Risks

MarketPhysicalrisks and
Opportunities
1.
2.
3.

Risks

Acute
Opportunities

Chronic

Risks

Strategy

～4℃

2050

2030

2050

Increase of costs due to the imposition of carbon taxes

▲305

▲816

▲262

▲441

Cost of taking measures to achieve emission reduction targets

▲52

▲354

▲26

▲101

Purchase of non-fossil certificates, expansion of renewable energy procurement,
implementation of energy-saving construction and reduction due to a decrease in theemission factor

▲136

▲363

▲116

▲196

Increase in investment efficiency and revision of construction plan

▲3

▲5

0

0

Cooperation with PM and BM (rationalization of operations)

▲8

▲13

0

0

Increase in properties’ competitiveness due to environmental certifications

Decrease in carbon tax expenses due to the achievement of
GHG emission reduction targets

+118

+816

+101

+441

Purchase of non-fossil certificates, expansion of renewable energy procurement,
implementation of energy-saving construction and reduction due to a decrease in theemission factor

Increase in amount invested in energy conservation

▲24

▲23

0

0

Cost reduction through the rationalization of the need for facilities and the decrease ofenergy consumption

▲102

▲101

▲49

(+38)

▲339

▲508

0

0

▲76

▲203

0

0

▲56

▲138

0

0

Promotion of communication with investors and lenders and increase of ratings by
ESG rating organizations

+43

+59

0

0

Increase in investment efficiency and revision of construction plan

+339

+508

0

0

Increase in rents due to measures taken for green buildings

+76

+203

0

0

Decrease in financing costs due to measures taken for green
buildings

+56

+138

0

0

Increase in repair expenses due to unpredictable storms andflood damage

▲9

▲14

▲9

▲14

Flood damage covered using non-life insurance

+9

+14

+9

+14

▲20

▲30

▲21

▲32

Increase in construction expenses due to the imposition ofcarbon taxes
Increase in expenses for building management contracts dueto the tightening of regulations associated with climate change

Increase in operation expenses due to an increase in energy
pricesFall in the occupancy rate due to delays in implementing
measures for green buildings
Decrease in rents due to delays in implementing measures forgreen buildings
Increase in financing costs due to delays in implementing
measures for green buildings

Opportunities

1.5℃/2℃
2030

Increase in expenses for obtaining environmental certifications

Opportunities(unit: million yen)

Reduction of energy expenses due to energy-saving
construction
Increase in occupancy rates due to measures taken for green
buildings

Increase of non-life insurance premiums

Reduction of energy consumption and water, heating and lighting expenses
Increase in the percentage of properties that have obtained environmental
certifications and improvement of environmental performance due to property
replacement

Increase in the percentage of properties that have obtained environmental
certifications and improvement of environmental performance due to property
replacement

Expansion of anti-flood facilities and training for responding to flooding

Rationalization of increased expenses and increasing resilience (improvement of
insurance valuation)

The above lists specified risks and opportunities that have a significant impact. Additional energy-saving investments, the impact of storm and flood damage on rental revenue and summer and winter energy expenses due to a rise in temperatures are omitted.
Transition Risk: Risks associated with the transition to a decarbonized society (forecast analysis of carbon tax, electricity, and energy prices). Reference scenario: IEA World Energy Outlook
Physical Risk: Physical risks (e.g., occurrence of water damage) caused by climate change itself. Reference scenario: WWF Water Risk Factor

33

Social and Governance2-4. Sustainability

Appropriately respond to changes in tenants’ needs and actively take measures to be chosen bytenants.
Initiatives for the tenants

Effectiveness of governance in related party transactions◼

Tenant satisfaction surveys has been implemented since 2005, andtotal satisfaction in 2024 was a new record high.

◼

Special committee members with real estate appraisal qualifications
are recruited for the Investment Committee.

◼

JPR will continue to work to solve issues and further increase tenantsatisfaction.

◼

◼

Questions about ESG were added to the survey in 2023.

The unanimous approval of all committee members including thespecial committee members is required for property sales transactions
with related parties.

47.4
44.4
11.9

22.5
46.3
35.4

Health & Comfort

25
31

39

40

41

0

20

40

60

80

（Overview of 2024 Tenant Satisfaction Survey）• Overall satisfaction： Average value with 4 points
being the highest• Survey period：from May to June in 2024◼

• Survey Scope：41 properties, 474 tenants• Questionnaire：management and administration,
responses to tenants, prevention and safety, ESGs, etc.,

Responses to questions about ESG suggested a high interest
in and a high number of tenants engaged in “energy saving &use of renewable energy,” “waste materials and recycling” and“disaster prevention.”◼

At the same time, interest in “environmental certification” waslow, verifying the relatively low recognition of the system itself.

◼

Install digital signage and post information about certification
evaluations to promote an increase in tenants' recognition ofenvironmental certifications.

Conclude agreement2024 (year)

Reporting

2023

Other transactions

Deliberation(acquisition decision)

2022

2.1

26.5

7.7

Confirmation of due
diligence results /Verification ofsolutions/improvement
measures2005

Diversity
Environmental
Certification

50.3

Review,screening

2.00

42.1
18.8

Planning

0

2.50

63.5

Property acquisitions

3.16

52.4

Approval

Board of Directors

3.57

Deliberation
Related party
transactions

Investment Committee

50

3.54

Due diligence subcommittee

3.52

Being engaged in

Investment Management
Department

75

Being Interested in

Energy saving & Use of
4.00
renewable energy
Waste materials &Recycling
3.50
Greening and Water
Resources
Disaster
3.00
prevention/BCP

Compliance subcommittee

Number of properties surveyed (left axis)
Overall satisfaction score (right axis)

JPR’s Board of Directors（ESG Awareness）

Compliance Committee（Overall Satisfaction）

External recruitment of special
committee member with realestate appraisal qualifications on
property acquisition and sale

1.

(BYGS Shinjuku Bldg.)

2.

In addition to the above, there may be cases where approval by the Board of Directors and consent by JPR are required, as
designated in the Investment Trusts Act.
The chart shows the general decision-making mechanism. Depending on the nature of the proposed acquisition, the order ofthe procedures may change or certain meetings may not be held.

34

3. Financial Results and Operating Forecasts

35

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 45th Fiscal Period (Jun. ‘24)
(period-on-period comparison)

Results of the 45th fiscal period ended June 2024 DPU : 7,600 yen (± 0 , period-on-period)
Net income significantly increased by acquisition of Nakano Central Park East

Dec. '23Period

Jun. '24Period

ChangeItem

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Reversal amount of reserve
DPU (yen) (per unit)

17,411
17,411
9,259
8,315
944
8,151
13
807
7,357
7,356
221
7,600

17,644
17,644
9,290
8,300
990
8,354
42
865
7,531
7,530
47
7,600

+233
+233
+30
-15
+45
+202
+28
+58
+173
+173
-173
-

Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.

Number of units outstanding

997,178

997,178-

Item
Operating revenue
Rental revenue
Operating expense
Expenses related to rent business

Revenue andprofitSelling, general and adminisutrative
expenses(million yen)

Rental revenue (existing properties)① ［Land rent］Contributed by the land rent revision of Otemachi Tower (Land with Leasehold Interest)③ ［Income equivalent to expense for restoration ］Decreased mainly due to the absence of
the income recorded in the previous period

Expenses related to rent business (existing properties)④ ［Utilities expenses］ Decreased mainly due to the seasonal factors
Balance of utilities (②－④) remains mostly flat
⑤ ［Property and other taxes］ Property tax increased due to the impact of property revaluation

Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related torent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Dec. '23Period Jun. '24Period
17,411
16,216
14,020
1,801
394
1,195
988
10
128
67
8,315
711
1,150
2,581
30
578
315
640
2,057
248
11,153
4.7%
9,096
3.9%
98.4%

17,644
16,552
14,334
1,820
397
1,092
845
62
16
167
8,300
751
1,006
2,667
34
472
317
641
2,149
258
11,493
4.7%
9,344
3.9%
97.8%

Change
+233
+336
+314
+19
+2
-103
-143
+51
-111
+100
-15
+40
-143
+85
+4
-106
+2
+0
+92
+9
+340
- pt
+248
- pt
-0.6ptAcquired *1
properties

Existing
properties※2

+439
+336
+329
+6
+102
+10
+92
+132
+31
+16
+0
+0
+10
+6
+59
+7
+366

-206
-0
-15
+19
-4
-206
-153
+51
-111
+7
-147
+8
-160
+85
+3
-116
-3
+0
+32
+1
-26

+307

-58

*1 Increase or decrease as a result of acquisition of the following assets is calculated.
Jun. '24 fiscal period: Acquisition of Nakano Central Park East
*2 Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ⑤).

36

①

②
③

④
⑤

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 45th Fiscal Period (Jun. ‘24)
(period-on-period comparison)

Item
Current Asset
Cash and deposits (including trust)
Other current asset
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Deferred assets
Investment corporaton bond issuance costs

BalanceSheet(million yen)

Investment unit issuance expenses
Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of investments corporation bonds

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

Total liabilities
Unitholders' capital
SurplusReserve for reduction entry
Unappropriated retained earnings
Total net assets
Unitholder's equity ratio

Dec. '23Period

Jun. '24Period

Change40,69339,812880
469,957
456,562
11,814
1,580
152
136
15
510,80230,511
15,0008,000
7,511
206,538
154,500
27,90024,138237,049
261,751
12,001
4,639
7,362
273,752

37,71036,625
1,085
499,027
485,614
11,813
1,600
132
124
7
536,871
48,56317,00021,0003,000
7,563
214,603
161,500
27,90025,203
263,166
261,751
11,953
4,418
7,535
273,704-2,982-3,187+205+29,070+29,052
-1
+19
-19
-12
-7
+26,068+18,052+17,000+6,000-5,000+52+8,064+7,000+1,064+26,116
-47
-221
+173
-47

53.6%

51.0%

-2.6ptIncrease or decrease in cash and deposits
Item

ChangeNet cash provided by operating activities
Income before income taxes
Depreciation and amortization
Other, net
Net cash provided by investing activities-30,093

Purchase of property, plant and equipment-31,114

Other, net
Net cash provided by financing activities
Proceeds from lisbilities
Repayment of liabilities
Dividends paid
Total cash and deposits+9,484+7,531+2,150-197+1,020+17,422+37,000-12,000-7,577-3,187

Increase or decrease in noncurrent assets
Item

ChangeProperty acquisition+29,184

Capital expenditures+1,999Depreciation
Others-2,149Total noncurrent assets+36+29,070

Increase or decrease in liabilities
Balance at start of
Repayment/
New procurement
Itemperiodredemption

Balance at end of
periodChangeShort-term loans payable-+17,000-

17,000+17,000

Long-term loans payable

169,500+20,000-7,000

182,500+13,000

Investment corporation bonds

35,900--5,00030,900-5,000Total liabilities

205,400+37,000-12,000

230,400+25,000

37

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 45th Fiscal Period (Jun. ‘24)(compared with forecast)

Results of the 45th fiscal period ended June 2024 DPU : 7,600 yen (± 0 , compared to the initial
forecast)
Rental income increased due to progress in leasing activities, etc.
Item
Operating revenue
Rental revenue
Operating expense
Expenses related to rent business

Revenue andprofitSelling, general and adminisutrative expenses

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Reversal amount of reserve
DPU (yen) (per unit)(million yen)

Number of units outstanding (unit)

Jun. '24Period

Jun. '24Period(forecast)(actual)17,695
17,695
9,386
8,388
997
8,309
25
855
7,479
7,479
99
7,600

17,644
17,644
9,290
8,300
990
8,354
42
865
7,531
7,530
47
7,600

-51
-51
-96
-88
-7
+45
+16
+10
+51
+51
-52
-

997,178

997,178-

ChangeRental revenue① [Rent and common charge] Increased mainly due to progress in leasing activities

Expenses related to rent business③ [Utilities expenses] Decreased due to the impact of the unit price of electricity, etc.,
Balance of utilities (②ー③) was up compared with the initial forecast

Non-operating income and expenses④ [Non-operating income] Increased due to recording of managing association reimbursements
and insurance proceeds

Jun. '24Period

Jun. '24Period(forecast)(actual)17,695
16,51914,307
1,818
394
1,175
932
53
Income equivalent to expense for21
restoration
Other variable income
168
Expenses related to rent business
8,388
Outsourcing fees
752
Utilities expenses
1,101
Property and other taxes
2,634
Insurance premiums
34
Repairs and maintenance504
Property management fees
312
Management association accounts 655
Depreciation
2,145
Other expenses related to246
rent business
NOI
11,452
NOI yield (book value)
4.7%
Rental income-real estate
9,307
After-depreciation (book value)
3.8%
Occupancy rate based on cncluded contract
97.7%(period average)

17,644
16,552
14,334
1,820
397
1,092
845
62
16
167
8,300
751
1,006
2,667
34
472
317
641
2,149
258
11,493
4.7%
9,344
3.9%
97.8%

Item

④

Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.

Change
-51
+32
+27
+2
+3
-83
-87
+8
-4
-0
-88
-0
-94
+32
+0
-32
+5
-13
+3
+11
+41
- pt
+37
+0.1pt+0.1pt

①

②

③

38

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 46th Fiscal Period (Dec. ‘24)(compared with 45th period)

Forecast of the Dec. ‘24 fiscal period, DPU: 7,700 yen (+100 yen from the result of Jun. ’24 fiscal period DPU)
Net profit for the fiscal period under review will generally remain unchanged due to the full-period contribution of theacquisition of Nakano Central Park East and the posting of temporary income such as the income equivalent to
expense for restoration.
Distributions are expected to grow using internal reserves.
Item
Operating revenue
Rental revenue
Operating expense

Jun. '24Period Dec. '24Period(forecast)

ChangeItem
Rental revenue
Rental revenue

Revenue andSelling, general and adminisutrative expenses
profitOperating income(million yen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve(million yen) Reversal amount of reserve
DPU (yen) (per unit)

17,644
17,644
9,290
8,300
990
8,354
42
865
7,531
7,530
47
7,600

18,207
18,207
9,779
8,750
1,028
8,427
4
931
7,500
7,499
178
7,700

+562
+562
+489
+450
+38
+73
-38
+65
-30
-30
+131
+100

Number of units outstanding

997,178

997,178-

Expenses related to rent business

Rental revenue (existing properties)① [Rent and common charge] Likely to decrease due to the impact of tenant move-outs at MS
Shibaura Bldg.
② [Land rent] The land rent revision of Otemachi Tower (Land with Leasehold Interest)
contributes for the full year
④・⑤ [Cancellation penalty income and income equivalent to expense for restoration]
Increase due to tenant cancellation at Sencity Bldg. (retail section, etc.)

Expenses related to rent business (existing properties)⑥ [Utilities expenses] Increase mainly due to the seasonal factors,
Assumes that balance of utilities (③－⑥) remains mostly flat.
⑦ [Repairs and maintenance] Increase due to the restoration at Sencity Bldg. (retail section, etc.)

Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc
Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related to rent business

NOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Jun. '24Period Dec. '24Period(forecast)

17,644
16,552
14,334
1,820
397
1,092
845
62
16
167
8,300
751
1,006
2,667
34
472
317
641
2,149
258
11,493
4.7%
9,344
3.9%
97.8%

18,207
16,662
14,421
1,839
402
1,544
1,025
107
339
72
8,750
776
1,199
2,659
35
637
313
652
2,209
267
11,665
4.7%
9,456
3.8%
96.9%

Change
+562
+110
+86
+18
+4
+452
+179
+44
+322
-95
+450
+24
+193
-8
+1
+165
-4
+10
+59
+8
+171
- pt
+111
-0.1pt-0.9ptAcquired *1
properties

Existing
properties※2

+134
+208
+206
+2
-74
+12
-86
+71
+16
+15
+0
+0
+4
+3
+30
+0
+93

+427
-98
-119
+18
+2
+526
+167
+44
+322
-8
+379
+7
+177
-8
+0
+161
-8
+10
+29
+8
+78

+63

+48

*1 Increase or decrease as a result of acquisition of the following assets is calculated.
Jun. '24 period: Acquisition of Nakano Central Park East
*2 Increase or decrease for existing properties, excluding the above, is calculated (the major factors behind theincrease/decrease for existing properties are described in ① to ⑦).

39

①
②

③
④
⑤

⑥

⑦

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 47th Fiscal Period (Jun. ‘25)
(compared with 46th period)

Forecast of the Jun. ‘25 fiscal period, DPU: 7,800 yen, which is record-high (+100 yen from theresult of Dec. ’24 fiscal period DPU forecast)Rental revenue is expected to recover due to progress in leasing, mainly MS Shibaura Bldg.
Dec. '24Period

Jun. '25Period(forecast)(forecast)

Revenue andSelling, general and adminisutrative expenses
profitOperating income(million yen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Reversal amount of reserve
DPU (yen) (per unit)

18,207
18,207
9,779
8,750
1,028
8,427
4
931
7,500
7,499
178
7,700

Number of units outstanding

997,178

Item
Operating revenue
Rental revenue
Operating expense
Expenses related to rent businessChangeItem

17,847
17,847
9,403
8,399
1,003
8,444
25
970
7,499
7,499
278
7,800

-359
-359
-375
-351
-24
+16
+21
+38
-0
-0
+100
+100

Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc

997,178-

Rental revenue① [Rent and common charge] Likely to increase due to progress in leasing activities③・④ [Cancellation penalty income and income equivalent to expense for restoration]
Decrease due to the absence of the amount recorded in the previous fiscal year, etc.

Expenses related to rent business⑤ [Utilities expenses] Decrease mainly due to the seasonal factors,
Balance of utilities (②ー⑤) likely improves slightly⑥ [Property and other taxes] Fixed and metropolitan tax likely increases due to the impact of revaluationin the previous year⑦[Repairs and maintenance] Likely to decrease due to the absence of restoration expenses recorded in theprevious period, etc.
⑧ [Depreciation] Depreciation of equipment on existing properties completes

Income equivalent to expense forrestoration

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees
Management association accounts

Depreciation
Other expenses related to rent
businessNOI
NOI yield (book value)
Rental income-real estate
After-depreciation (book value)

Dec. '24Period

Jun. '25Period(forecast)(forecast)

18,207
16,662
14,421
1,839
402
1,544
1,025
107
339
72
8,750
776
1,199
2,659
35
637
313
652
2,209
267
11,665
4.7%
9,456
3.8%

17,847
16,795
14,552
1,839
402
1,052
931
50
71
8,399
774
1,078
2,763
35
376
317
648
2,146
257
11,594
4.7%
9,447
3.8%

Change
-359
+132
+131
+0
-492
-94
-107
-289
-0
-351
-1
-121
+104
-0
-260
+4
-3
-62
-9
-71
- pt
-8
- pt

①

②
③
④

⑤
⑥
⑦

⑧

40

3. Financial Results andOperating Forecasts

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

Item
Operating revenue
Rental revenue (fixed income)Rents and common charge
Land rent
Other fixed income
Other rental revenue (variable income)incidental income
Cancellation penalty, etc.
Income ecquivalent to expense forrestoration to original condition

Other variable income
Expenses related to rent business (excluding
depreciation)

Outsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenance
Property management fees

Rental business profits(million yen)Management association accounts
Other expenses related to rent business

NOI

Gain or loss on sale ofproperties (million yen)

Depreciation
Expenses related to rent business
Rental income-real estate
Capital expenditures
NCF
Gain on sale of real estate
Loss on sale of real estate

Jun. '23 Period
17,291
16,146
13,948
1,801
396
1,145
1,001
17
59
66
6,266
707
1,285
2,594
29
433
312
637
265
11,025
2,044
8,310
8,981
1,453
9,571
881
-

Dec. '23 Period
Change
-0.6%
0.7%
0.8%
0.0%
-15.8%
-0.4%

2.0%
0.5%
-1.2%
3.5%
0.3%

-2.0%
-0.5%
1.4%
-2.3%
-3.3%
-1.8%

17,411
16,216
14,020
1,801
394
1,195
988
10
128
67
6,258
711
1,150
2,581
30
578
315
640
248
11,153
2,057
8,315
9,096
2,027
9,125
-

Jun. '24 Period
Change
0.7%
0.4%
0.5%
0.0%
4.3%
-1.3%

-0.1%
0.6%
-10.5%
-0.5%
33.5%

1.2%
0.6%
0.1%
1.3%
39.5%
-4.7%

17,644
16,552
14,334
1,820
397
1,092
845
62
16
167
6,150
751
1,006
2,667
34
472
317
641
258
11,493
2,149
8,300
9,344
1,999
9,494
-

Dec. '24 Period
Change
1.3%
2.1%
2.2%
1.1%
-8.6%
-14.5%-1.7%
5.7%-12.5%
3.3%-18.4%

3.1%
4.5%
-0.2%
2.7%
-1.4%
4.0%

(forecast)
18,207
16,662
14,421
1,839
402
1,544
1,025
107
339
72
6,541
776
1,199
2,659
35
637
313
652
267
11,665
2,209
8,750
9,456
2,012
9,653
-

Jun. '25 Period
Change
3.2%
0.7%
0.6%
1.0%
41.4%
21.3%

6.4%
3.3%
19.2%
-0.3%
35.0%

1.5%
2.8%
5.4%
1.2%
0.6%
1.7%

(forecast)
17,847
16,795
14,552
1,839
402
1,052
931
50
71
6,253
774
1,078
2,763
35
376
317
648
257
11,594
2,146
8,399
9,447
2,042
9,552
-

Change
-2.0%
0.8%
0.9%
0.0%
-31.9%
-9.2%

-4.4%
-0.2%
-10.1%
3.9%-40.9%

-0.6%
-2.8%
-4.0%
-0.1%
1.5%
-1.1%

41

3. Financial Results andOperating Forecasts

Change in Rental Business Revenue

Rental revenue for the Dec. ‘24 period is expected to rise approx. 110 million yen (period-on-period)
Rental revenue for the Jun. ‘25 period is expected to rise approx. 132 million yen (period-on-period)
Rent revenue (factor for period-on-period changes)
Rents and common
charge, etc.

Rents and common
charge, etc.
Rent revenue

Plus item

Moveins+358

Rents and common
charge, etc.

+333
Moveins+295

Moveouts-315

Moveouts-482

Moveins+262
Acquisition

Acquisition+329

16,662+206

16,552Others+2

16,216+131+105

Minus item

Others+4

Moveouts-170(million yen)

16,795
Revision, Others
+0
etc.
+39

Revision,
etc.
+23

Revision,etc.
+232023.12Jun. ’24 period

Dec. ’24 period (forecast)Jun. ’25 period (forecast)42

4. Appendix

43

4. Appendix

Fund Summary
Dec. 2021 Period
41.7%
33.8%
4.6%
4.8%
3.8%
3.7%
3.9%
3.1%
3.7%

Jun. 2022 Period
40.0%
31.9%
4.5%
4.8%
3.8%
3.7%
3.9%
3.1%
3.8%

Dec. 2022 Period
40.0%
32.0%
4.5%
4.8%
3.8%
3.7%
3.9%
3.1%
3.9%

Jun. 2023 Period
40.3%
32.4%
4.5%
4.8%
3.7%
3.7%
3.9%
3.0%
4.0%

Dec. 2023 Period
40.2%
32.2%
4.5%
4.7%
3.7%
3.6%
3.9%
3.1%
4.2%

Jun. 2024 Period
42.9%
34.5%
4.5%
4.7%
3.7%
3.6%
3.9%
3.0%
4.4%

(After-depreciation
yield)

3.0%

3.1%

3.2%

3.3%

3.4%

3.5%

FFO
AFFO
FFO per unit
EPU
Cash distribution per unit
Dividend yield
ROE
Reserve for reduction entry per unit
Net asset per unit
NAV per unit

9,006 million yen
7,404 million yen
9,398 yen
8,236 yen
7,550 yen
3.7%
6.1%
2,657 yen
268,875 yen
383,368 yen

9,315 million yen
7,933 million yen
9,341 yen
8,631 yen
7,800 yen
3.8%
6.3%
3,386 yen
273,684 yen
394,302 yen

9,388 million yen
7,885 million yen
9,414 yen
8,493 yen
7,750 yen
4.1%
6.2%
4,129 yen
274,378 yen
394,241 yen

9,261 million yen
7,807 million yen
9,287 yen
8,121 yen
7,600 yen
4.3%
5.9%
4,652 yen
274,749 yen
391,230 yen

9,413 million yen
7,386 million yen
9,440 yen
7,377 yen
7,600 yen
4.3%
5.4%
4,430 yen
274,527 yen
395,190 yen

9,681 million yen
7,681 million yen
9,708 yen
7,551 yen
7,600 yen
4.6%
5.5%
4,383 yen
274,479 yen
397,679 yen

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

403,500 yen

408,000 yen

378,500 yen

357,500 yen

357,000 yen

329,500 yen

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

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

1.0 times
1.4 times
22.3 times
20.1 times
53.9%
82.3%
98.0%

0.9 times
1.3 times
22.0 times
19.2 times
53.7%
81.8%
97.1%

0.9 times
1.3 times
24.2 times
18.9 times
53.6%
80.5%
102.6%

0.8 times
1.2 times
21.8 times
17.0 times
51.0%
78.3%
98.7%

LTV

NOI yield
Afterdepreciationyie
ld
Implied cap
rate(book value)(appraisal value)(acquisition value)(book value)(appraisal value)(acquisition value)(book value)(appraisal value)(NOI yield)

NAV multiple
PBR
PER
FFO ratio
Unitholder’s equity ratio(FFO)
Pay out ratio(AFFO)

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

5. Dividend yield = Cash distribution per unit (annualized, most recent
result x 2) / investment unit price6. ROE (return on equity) = Net income (annualized, most recent result x2) / net assets
7. NAV per unit = (Net assets + unrealized gains or losses – total cash
distributions) / number of units outstanding (end of period)
8.
NAV multiple = Investment unit price / NAV per unit
9.
PBR (price book-value ratio) = Investment unit price / net assets perunit

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

44

4. Appendix

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

Breakdown by area and by asset class
Office properties in Tokyo :(average)

Occupancy Rate

Retail properties

369.2 billion yen
Office properties in Other Cities : 61.5 billion yen
Retail properties : 95.0 billion yen

Occupancy rate

96.8%

Office properties in Other Cities

95.2

94.0 93.8

92.6 93.1

94.3 94.9

96.1

97.7 98.3

99.0 98.7

98.0

97.0

96.2 96.4 96.1
93.6 94.0

95.0 94.8 94.4

95.6

96.9 97.0 97.2 97.5 97.4

97.8 98.3 98.5 98.4 98.2

99.2 99.2 99.5 99.6 99.4

98.2

96.9

97.8

97.0 97.6

98.4 97.8

5,258
4,848
4,395

4,214

4,047
3,449
2,994
2,224
1,636
922

1

2
'02

3

4
'03

5

6
'04

7

8
'05

9

10
'06

11
'07

12

13

14

'08

15

16

17

'09

18

'10

19

20

'11

21

22

23

'12

24
'13

25

26

27

'14

28
'15

29

30

'16

31

32

33

'17

34
'18

35

36
'19

37

38
'20

39

40

'21

41

42
'22

43

44
'23

120
110
100
90
80
70
60
50
40
30
20
10
0
45（period）'24 （year）■ Every kind of ratio
Ratio by Asset Class

Ratio by Area

(Ratio of Acquisition Price)(Ratio of Acquisition Price)

Other
cities
14.8%

Urban Retail
Property, etc.
18.1%
Portfolio
management
standards
70 - 90%
for officeproperties

Portfolio
management
Greaterstandards
Tokyo
80 - 90%
33.6%
for Tokyo
Office81.9%

Ratio by Asset Size
(Office Properties, Ratio of
Acquisition Price)

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

23.8%
Large-sized
Central
Tokyo
51.6%

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

19.7%(30,000 m2
or more)56.5%

Ratio by Number of Minutes
Walk from Nearest Station(Ratio of Acquisition Price)

Within 5-10
minutes
9.0%

Directly
linked16.5%(Office Properties, Area Ratio)

Fixed-termlease contract

18.3%

Within 3-5
minutes22.0%
Within 1-3
minutes
24.9%

Ratio by Contract Type

Within
1 minute
27.5%

Ordinary
lease
contract

81.7%

45

4. Appendix

Move-Ins and Move-Outs of Tenants (as of June 30, 2024)■ Breakdown and changes in move-ins and move-outs（ Move-in/move-out spaces by area and asset class: m2 ）Move-ins

Move-outs

Net
Increase/
Decrease

Office properties inCentral Tokyo

2,362

12,156-9,793

Office properties inGreater Tokyo

4,941

3,257

1,684

Office properties in
Other Cities

1,810

1,308

501

Retail properties

565

Total

9,680

155

410

16,877-7,197■ Reasons for move-ins and move-outs

Eviction, etc.

Eviction, etc.

9%

Better locationor building
24%

9%Moveins
34

Downscalingor cost reduction
29%

68%
New establishment
or expansion

New establishment or
expansion
13%

Moveouts
31

Better locationor building
16%

Consolidation
32%■ Move-in/move-out spaces by property(Move-ins)‐(move-out)

Move-ins

Move-outs

Kanematsu Bldg.

401

Shin-Kojimachi Bldg.

-111

MS Shibaura Bldg.

-9,805JPR Ichigaya Bldg.

-500

-500

Shinjuku Square Tower

0

-813

Shinjuku Center Bldg.

83

83

JPR Harajuku Bldg.

542

542

Science Plaza - Yonbancho Plaza

27

-112

140

Tokyo Square Garden

78

-4

82

Otemachi Financial City North Tower

-513

-513

Ochanomizu Sola City

3

3

JPR Jingumae 432

235

235

JPR Ginza Namiki-dori Building

0

FUNDES Suidoubashi

174

JPR Chiba Bldg.

-51

-207

156

JPR Yokohama Nihon Odori Bldg.

-99

-174

74

Shinyokohama 2nd Center Bldg.

311

-259

570

Kawaguchi Center Bldg.

0

Yume-ooka Office Tower

0

（㎡）

401
-406

295

-9,805

-155

813

155
174

-416
-346

416
346

-1,7572,124

Olinas Tower

367

Sencity Bldg.

637

Nakano Central Park East

519

Niigata Ekinan Center Bldg.

294

-95

390

Yakuin Business Garden

0

-520

520

JPR Shinsaibashi Bldg.

0

-692

692

JPR Dojima West

207

-95

733
519

207

46

4. Appendix

Yields (as of June 30, 2024)■ Yields by area and by asset class(based on book value)(NOI yield)（%）

10

Circle size = portfolio asset size (book value) Center of circle= NOI yield
Officeproperties
OfficeOfficein Greater properties
properties
Tokyoin Otherin Central
RetailCitiesTokyo
properties

6.3%

5.6%

5
4.0%

4.6%

■ NOI yield by property (based on book value)
Central Tokyo
5

10

JPR Ningyocho Bldg.

6.9

JPR Ueno East Bldg.

8.6

4.8
8.4

Shinjuku Center Bldg.

3.5

Minami Azabu Bldg.

3.8
4.9

5

OfficeOfficeproperties
Officeproperties in Greater
properties
in Central
Tokyoin OtherTokyo
Cities5.1%

FUNDES Ueno

3.4

Average of Greater Tokyo

0

7.0
2.7

3.9%

Portfolio average
3.9%

Tenjin 121 Bldg.

3.8
3.2
4.7
1.5
3.1
2.9

JPR Ginza Namiki-dori Building

2.9

7.8
8.1
5.6

JPR Nagoya Fushimi Bldg.

8.9

Yakuin Business Garden
JPR Shinsaibashi Bldg.

3.0
4.9

JPR Shinsaibashi West
GRAND FRONT OSAKA (Umekita…

Yurakucho Ekimae Bldg.

10.5
10.2
11.4
11.5

Sompo Japan Sendai Bldg.

JPR Dojima Bldg.

Shinjuku Sanchome East Bldg.

6.2

Sompo Japan Wakayama Bldg.

3.4

JPR Shibuya Tower Records Bldg.

6.0
4.2
4.3

JPR Naha Bldg.

2.9

Tokyo Tatemono Higashi‐…

4.2

Niigata Ekinan Center Bldg.

5.3

JPR Kojimachi Bldg.

JPR Jingumae 432

3.3%

3.7

Ochanomizu Sola City

4.1%

Kawasaki DICE Bldg.

3.1

Otemachi Financial City North…

9.9
9.6

Cupo-la Main Bldg.

Ginza Sanwa Bldg.

Shibadaimon Center Bldg.

Retailproperties

3.8

Tanashi ASTA

JPR Sendagaya Bldg.

Tokyo Square Garden

5.2

Musashiurawa Shopping Square

6.1

Science Plaza - Yonbancho Plaza

8.2

JPR Omiya East

JPR Musashikosugi Bldg.

3.8

JPR Nihonbashi-horidome Bldg.

10

JPR Yokohama Bldg.

Nakano Central Park East

5.5

The Otemachi Tower (land with…

7.4
5.4
5.9

Sencity Bldg.

Shinagawa Canal Bldg.

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

5.8

Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower

5.5

Across Shinkawa Bldg. Annex(After-depreciation yield)

10.4
8.4
8.4
7.5

Tachikawa Business Center Bldg.

4.6

JPR Harajuku Bldg.

6.5
7.2
6.8

Kawaguchi Center Bldg.

Oval Court Ohsaki Mark West

15

Shinyokohama 2nd Center Bldg.

3.6

Rokubancho Bldg.

10

JPR Yokohama Nihon Odori Bldg.

6.3

Shin-Kojimachi Bldg.
MS Shibaura Bldg.

5

JPR Chiba Bldg.

6.5

JPR Ichigaya Bldg.

015Arca East Bldg.

3.7

Kanematsu Bldg.
Kanematsu Bldg. Annex

BYGS Shinjuku Bldg.

0

（%）

（%）

0

Shinjuku Square Tower

Portfolio average
4.7%

Greater Tokyo and Other Cities

GRAND FRONT OSAKA (North…
JPR Dojima West
Housing Design Center Kobe
JPR Chayamachi Bldg.

FUNDES Suidoubashi

3.6

FUNDES Tenjin Nishidori

Average of Central Tokyo

3.9

Average of Other Cities

2.8
3.4
2.6
5.8
4.9
3.8
5.4

47

4. Appendix

Diversification of Tenants (as of June 30, 2024)■ Ratio of tenant occupancy◼

◼

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

The number of office tenants other than the sponsors, etc.
with tenant occupancy of 1% or more is none (excluding
property comprising land with leasehold interest).

Category(No. of tenants)

Leased space(㎡)

ABC Development
Corporation

Housing Design Center Kobe

35,444.13

7.1

Seiyu GK

Tanashi ASTA

31,121.71

6.3

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.0

Musashiurawa Shopping Square

9,558.51

1.9

JPR Shibuya Tower Records
Bldg.

8,076.85

1.6

A company

Cupo-la Main Bldg.

5,963.00

1.2

Ｂ companyMusashiurawa Shopping Square

5,285.40

1.1

Sponsors, etc.
with 1% or more
(1 company)

Tokyo Prime Stage Inc.

The Otemachi Tower (landwith Leasehold Interest)

7,875.50

1.6

Other tenantswith 1% or more

None

C company

JPR Nagoya Fushimi Bldg.

4,904.64

1.0

D company

Yakuin Business Garden

4,719.50

1.0

E company

Shinjuku Center Bldg.

4,581.57

0.9

F company

Nakano Central Park East

4,362.72

0.9

G company

Shinjuku Square Tower

4,242.48

0.9

H company

Oval Court Ohsaki Mark West4,088.44

0.8

I company

Niigata Ekinan Center Bldg.

3,938.63

0.8

J company

Sompo Japan Sendai Bldg.

3,733.03

0.8

K company

BYGS Shinjuku Bldg.

3,669.05

0.7

L company

Olinas Tower

3,544.12

0.7

M company

Olinas Tower

3,544.12

0.7

N company

Rise Arena Bldg.

3,522.90

0.7

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

23.2%

Retail tenantswith 1% or more
(7 companies)

Sponsors, etc. with
1% or more

1.6%

Less than 1%
75.2%■ Ratio by tenant’s industry(office properties, area ratio)*1

Medical andOthersTransportation Welfare
0.5%
1.0%
3.4%
PublicServices
Construction
1.2%
6.5%
Services
Real Estate
28.1%
10.3%

Manufacturing
10.6%

Wholesale andRetail
15.1%

Finance andInsurance
11.5%

Information andCommunications
11.6%

Ratio ofoccupancy

Occupying property

Less than 1%(1,241companies)

TenantOlympic Group
Corporation
Tower Records Japan
Inc.

(%)

*1. Figures exclude GRAND FRONT OSAKA.

48

4. Appendix

Rent and Occupancy■ Change in occupancy rate and rents
Item

Jun. 2021 Period

Dec. 2021 Period

Jun. 2022 Period

Dec. 2022 Period

Jun. 2023 Period

Dec. 2023 Period

Jun. 2024 Period

97.7

95.8

96.9

95.9

96.9

97.9

97.1

96.5

94.2

93.3

93.7

95.1

96.1

95.6

Average rent (entire area), yen

19,166

19,445

19,496

19,566

19,538

19,844

19,799Average rent (central Tokyo), yen

22,451

22,53322,50422,716

22,79422,717

23,119Average rent (greater Tokyo), yen

18,217

18,42018,362

18,35918,317

19,25918,947

Average rent (other cities), yen

14,067

14,606

14,66014,653

14,70914,763

14,782

-0.6

-0.6

-0.4

+1.4

+1.3

+0.7

+0.5

99.3

99.5

99.9

99.7

99.5

99.6

99.7

99.2

99.2

99.4

99.6

99.4

99.6

99.7

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

RetailOccupancy rate based on
concluded contract, %Occupancy rate based on
generated rents, %■ Status of rent revision, rent through tenant replacement andcontribution rate (Jun. ‘24)

■ Leased area by rent level/ratio of contracts withupward rent revision (contracts renewed Jun. ’24 period)(million yen)

Increase/
Decrease
Ratio (%)

91.3

+8.4

+1.0

23.7

21.8

+8.9

+2.5

4

0.9

0.9

-0.4

-5.1

170

74.7

68.5

-

-

Tenant replacement

35

9.5

8.7

-1.5

-2.5

Upward revision

15

3.2

3.0

+3.6

+17.4

Decrease in rent

11

4.9

4.6

-5.2

-16.2

9

1.3

1.2

-

-

244

109.0

100.0

+6.8

+0.8

Number ofcontracts(thousand m2)

209

99.5

Upward revision

35

Decrease in rent

Item
Rent Revisions

Neither upward or
downward revision of
rent

Neither upward or
downward revision of
rent
Total (Rent revision +Tenant replacement)

Area

Area ratio(%)

Increase/
Decrease

Item

Area

(thousand m2)

Area ratio(%)

Ratio ofcontractswith upwardrevision (%)

Lower than market rent

16.7

19.0

26.3

Within market range

24.6

28.0

19.1

Market rent more

46.6

52.9

6.3

■ Leased area by rent level (contracts renewed Dec.
‘24. period - Jun. ’26 period)
Item

Area (thousand m2)

Area ratio (%)

Lower than market rent

66.7

26.1

Within market range

76.7

30.0

Market rent more

112.3

43.9

49

4. Appendix

Value Enhancing Construction WorkStrengthening property competitiveness through renovation work aimed at improving tenantsatisfaction.
Value Enhancing Construction WorkJPR Harajuku Bldg.

JPR Yokohama Bldg.

BYGS Shinjuku Bldg.

JPR Omiya Bldg.

Housing Design Center Kobe

Shinjuku Square Tower

50

4. Appendix

Appraisal Value (as of June 30, 2024)

Unrealized gains increase due to increase in appraisal value
Status of change in appraisal value

Appraisal value and unrealized gains
Appraisal value

compared toprevious
period*1

Ratio of
Unrealized gains
unrealized gains

627.8

130.4

billion yen

billion yen

26.2%+31.5 billion yen＋2.5 billion yen(＋1.4 billion yen) (＋1.6 billion yen)

Cap rates remained flat.
Appraisal value in a part of properties owned by JPR decreased
due to the revisions of utilities expenses.

◼
◼

(Appraisal Value)(Direct Cap Rate)(number of property)

Dec. ’23
periodJun. ’24
periodLowering

31

3

18

Same

36

64

32

Rising01

Dec. ’23
periodJun. ’24
periodIncrease

25

18

Same

21

Decrease

21-1.1pt(＋0.4pt)(number of property)*1. Figures in parentheses exclude the impact of properties for sale and purchase.

Changes in unrealized gains and losses(100 mn.-yen)(%)

130.4 billion yen

1,400

30

1,200

26.2%

1,000

20

800
600

10

400
200

0

0
-200
-400

'04.6

'06.6

'08.6

'10.6

'12.6

'14.6

'16.6

'18.6

'20.6

'22.6

'24.6

-10

（period）

51

4. Appendix

Appraisal Value by Property (as of June 30, 2024)
Direct
cap
(NCF
Cap)
(%)

DCF
DCF
Unrealized
Change discoun Change termina Change Book value
gain or loss(% pt) t rate (% pt) l cap(% pt) (mn yen)
(mn yen)(%)(%)

Appraisalvalue(mn yen)Change(mn yen)Kanematsu Bldg.

14,100-200

3.3%- 3.1%-

3.5%-

14,563-463

Kanematsu Bldg. Annex

2,970

-

3.7%

- 3.5%

-

3.9%

-

2,335

+634

JPR Ningyo-cho Bldg.

3,230

-

3.5%

- 3.3%

-

3.6%

-

2,059

Shin-Kojimachi Bldg.

4,160

-140

3.4%

- 3.1%-

3.5%-

MS Shibaura Bldg.

13,900-500

3.9%- 3.6%-

4.0%-

JPR Ichigaya Bldg.

4,780

-50

3.5%

- 3.3%

-

3.7%

-

5,180

-400

Oval Court Ohsaki Mark West

5,310

+40

3.7%

- 3.5%

-

3.9%

-

2,668

Shinjuku Square Tower

15,700+200

3.5%- 3.3%-

3.7%-

BYGS Shinjuku Bldg.

19,200-200

3.4%- 3.2%

-

3.6%

808

+2

4.4%

- 4.2%-

4.6%

Shinjuku Center Bldg.

20,900-300

3.0%- 2.7%-

Minami Azabu Bldg.

3,410

-10

3.6%

- 3.4%

Shinagawa Canal Bldg.

2,100

-40

3.7%

Rokubancho Bldg.

3,770

+40

JPR Harajuku Bldg.

10,100-JPR Nihonbashi-horidome Bldg.

6,940

JPR Sendagaya Bldg.
Ginza Sanwa Bldg.

Direct
cap
(NCF
Cap)
(%)

DCF
DCF
Change discoun Change termina Change Book value(% pt) t rate (% pt) l cap(% pt) (mn yen)(%)(%)

Appraisalvalue(mn yen)Change(mn yen)

Rise Arena Bldg.

18,400-100

3.5%- 3.2%-

3.6%-

12,259Yume-ooka Office Tower

7,310

-90

3.7%

- 3.4%

-

3.8%

-

4,978

+2,331+1,170Olinas Tower

40,400-500

3.3%- 3.0%-

3.4%-

25,370+15,029

2,397+1,762JPR Yokohama Bldg.

10,200+100

3.7%- 3.5%

-

3.8%

-

7,636

+2,563

11,091+2,808JPR Omiya Bldg.

11,100-3.7%- 3.5%

-

3.8%

-

5,467

+5,632

Sencity Bldg.

15,100-600

4.0%

0.1 3.7%

0.1

4.1%

0.1

14,099+1,000+2,641Nakano Central Park East

30,100-2.9%- 2.7%-

3.0%-

29,179+920

12,674+3,025

Tanashi ASTA

11,200+100

5.2%- 5.1%

-

5.4%

-

6,779

+4,420-15,391+3,808Cupo-la Main Bldg.

3,080

+10

4.6%

- 4.4%

-

4.8%

-

1,520

+1,559

-

597

+210

JPR Musashikosugi Bldg.

5,360

+20

4.6%

- 4.4%

-

4.8%

-

7,054

-1,694

3.1%-

24,148-3,248Musashiurawa Shopping Square

4,340

-10

4.8%

- 4.7%

-

5.0%

-

3,407

+932

-

3.7%

-

3,754

-344

Kawasaki Dice Bldg.

12,600-

4.1%- 4.0%-

4.3%-

12,791-191- 3.4%

-

3.8%

-

1,840

+259

FUNDES Ueno

4,080

-10

3.5%

- 3.2%

-

3.6%

-

3,683

+396

3.7%

-0.1 3.5%

-

3.8%

-

2,881

+888

Niigata Ekinan Center Bldg.

2,160

-

5.4%

- 5.4%

-

5.6%

-

1,476

+683

3.5%

- 3.3%

-

3.7%

-

8,868

+1,231JPR Naha Bldg.

2,450

+40

4.6%

- 4.6%

-

4.8%

-

1,622

+827

-10

4.0%

- 3.8%

-

4.2%

-

4,849

+2,090

Sompo Japan Sendai Bldg.

4,010

-100

4.5%

- 4.2%

-

4.6%

-

2,282

+1,727

11,800-100

3.6%- 3.4%-

3.8%-

14,688-2,888

Sompo Japan Wakayama Bldg.

1,550

-

5.7%

- 5.5%

-

5.9%

-

1,294

+255

3,880

-

2.8%

- 2.5%

-

2.9%

-

3,668

+211

Tenjin 121 Bldg.

4,050

-30

3.8%

- 3.4%

-

3.9%

-

1,945

+2,104The Otemachi Tower (Land with Leasehold Interest)

59,800+3,1002.4%- 2.3%-

2.5%-

38,388+21,411

JPR Dojima Bldg.

4,270

+290

3.6%

-0.1 3.4%

-0.1

3.7%

-0.1

2,080

+2,189Science Plaza - Yonbancho Plaza

3,470

-

3.6%

- 3.2%

-

3.7%

-

2,757

+712

JPR Nagoya Fushimi Bldg.

3,490

-20

4.6%

- 4.2%

-

4.6%

-

3,773

-283

Shibadaimon Center Bldg.

7,350

+820

3.3%

- 3.0%

-

3.4%

-

4,175

+3,174

Yakuin Business Garden

24,300-100

3.5%- 3.3%

-

3.6%

-

9,863

+14,436

Tokyo Square Garden

22,100-100

2.4%- 2.2%-

2.6%-

18,161+3,938JPR Shinsaibashi Bldg.

4,700

-70

3.5%

- 3.2%

-

3.6%

-

5,309

-609

JPR Kojimachi Bldg.

5,850

-380

3.0%

- 2.8%

-

3.1%

-

5,825

+24

JPR Shinsaibashi West

4,880

+100

3.6%

-0.1 3.4%

-0.1

3.7%

-0.1

3,965

+914

Otemachi Financial City North Tower

13,000-2.3%- 2.0%-

2.4%-

11,427+1,572

GRAND FRONT OSAKA(Umekita Plaza andSouth Building)

12,000-300

3.1%- 2.9%-

3.2%-

11,766+233

Tokyo Tatemono Higashi Shibuya Bldg.

12,200-3.4%- 3.5%-

3.6%-

11,648+551

GRAND FRONT OSAKA(North Building)

10,000-100

3.2%- 3.0%

-

3.3%

-

9,483

+516

7,040

-

2.9%

- 2.7%

-

3.0%

-

6,496

+543

JPR Dojima West

2,780

-20

3.7%

- 3.4%

-

3.8%

-

2,601

+178

15,400+100

3.2%- 3.0%-

3.3%-

11,384+4,015

Housing Design Center Kobe

7,390

+60

5.3%

- 5.1%

-

5.4%

-

6,243

+1,146JPR Jingumae 432

4,330

+230

2.9%

- 3.0%

-

3.1%

-

4,247

+82

JPR Chayamachi Bldg.

8,300

-110

3.2%

- 2.9%

-

3.3%

-

5,932

+2,367

Shinjuku Sanchome East Bldg.

2,360

-

3.1%

- 2.6%

-

3.3%

-

2,491

-131

FUNDES Tenjin Nishidori

3,660

-30

3.3%

- 3.1%

-

3.4%

-

3,340

+319

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

3,490

-

2.8%

- 2.4%

-

2.9%

-

3,244

+245

JPR Ginza Namiki-dori Bldg.

11,000-100

2.7%- 2.4%-

2.7%-

10,122

+877

Total

627,848+1,482

497,417+130,430

FUNDES Suidoubashi

3,380

-90

3.3%

- 3.1%

-

3.4%

-

3,124

+255

Central Tokyo

317,828 +2,312

267,156+50,671

Arca East

6,520

-260

3.5%

- 3.2%

-

3.6%

-

4,226

+2,293

Greater Tokyo

210,030-440

157,279+52,750

JPR Chiba Bldg.

1,910

-

5.1%

- 4.9%

-

5.3%

-

2,137

-227

Other Cities

99,990-390

72,980+27,009

JPR Yokohama Nihon Odori Bldg.

2,460

-

4.7%

- 4.5%

-

4.9%

-

2,282

+177

Property name

Across Shinkawa Bldg. Annex

Ochanomizu Sola CityJPR Shibuya Tower Records Bldg.

Shinyokohama 2nd Center Bldg.

2,630

+10

4.1%

- 3.9%

-

4.2%

-

1,464

+1,165

Kawaguchi Center Bldg.

12,700+900

4.2%- 3.9%

-

4.3%

-

7,239

+5,460JPR Ueno East Bldg.

5,870

-

3.5%

- 3.3%

-

3.6%

-

2,846

+3,023

Tachikawa Business Center Bldg.

4,670

-10

3.8%

- 3.5%

-

3.9%

-

2,852

+1,817

Property name

Unrealized
gain or loss
(mn yen)+6,1401. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate that serve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.
3. Impact of sold properties is not included in calculation of change in appraisal value from previous period.

52

4. Appendix

JPR’s Commitment to Sustainability (1):Materialities

Review the items below according to social needs and expansion of initiatives.
Waste recycling rate target was newly set in this fiscal period
Materialities

Policies
Promoting acquisition of environmental certification

Strategies⚫
⚫

Improving environmental certification acquisition rate
Improving environmental ratings

Achieving reductions by lowering emissions coefficients
Achieving reductions with energy saving renovations⚫ Achieving reductions by introducing renewable energy⚫ Reducing waste and improving recycling rate⚫

Reducing GHG emissions

E Action on climate change
Efficient use of water resources and promotion of 3Rs(Reuse, Reduce and Recycle)
Strengthening climate change risk management
Working with tenants to address climate change
Improving tenantsatisfaction with safety,
security and comfort

a rewarding
S Creating
workplace environment

Respect for human rights

Improving satisfaction by providing tangible andintangible services (safety, security and comfort)

⚫

⚫
⚫

⚫

⚫

⚫

Implementing water-saving construction work
Reducing waste and promoting recycling⚫

Ratio of green lease agreements

Improving overall tenant satisfaction (safety, security andcomfort)⚫

Average tenant satisfaction score

Fostering professionals who support corporate growth

Building an efficient business structure⚫

Improvement of business efficiency and process

Creating a rewarding workplace environment⚫

Promoting diversity & inclusion⚫

Compliance with norms and laws concerning respectfor human rights

⚫

SDGs

Target 2030: Environmental certification acquisition
coverage rate of 90% or more (4-star/"A" rating or higher)
Target 2050: Environmental certification acquisition
coverage rate of 100% (4-star/"A" rating or higher)
Target 2030: Achieving 46.2％ reduction in GHG emissions(compared to the 2019 level)
Target 2050: Achieving net zero
⚫ Rate of introduction of renewable energy⚫ Ratio of LED lighting
Target 2030: Achieving 10% reduction in water use per
floor area (compared with the 2017 level)
Target 2030: Achieving 70% of waste recycling rate (inprinciple, for properties with management authority）

Expansion of green lease agreement⚫

⚫

* Changed items

Building industry-leading climate change risk response
capabilities

Strengthening human resources through training andself-development support

Maintaining and improving physical and mental health

Target/KPI

Realization of physical, mental health and work-lifebalance
Providing an environment where each person can play anactive role⚫
⚫

Training expenses per employee
Training hours per employee(Target) 70% or more of annual paid leave taken (every
year)⚫ Percentage of participation in health examinations⚫ Overtime hours per employee⚫
⚫

Average employee satisfaction
Response rate of employee satisfaction survey

Promoting the active participation of diverse humanresources(Target) Ratio of female managers of 10% or more in 2030
⚫ Ratio of female employees⚫ Number of employees aged 60 or overRaising awareness of human right policies both inside andoutside the company⚫

Human rights training (every year)

Number of results briefings per year
Number of meetings with institutional investors in Japan⚫ Number of meetings with overseas institutional investors⚫ Number of events for individual investors in which JPR
participates⚫

Implementation of transparent management throughactive IR

Strengthening corporate

G governanceIndustry-leading information disclosure⚫ Active dialogue with investors⚫

⚫

GRESB Assessment
MSCI ESG scores⚫ CDP evaluation⚫

Improving overall strength of Sustainability Promotion
Framework⚫

Obtaining industry-leading ESG valuation⚫

Enhancing a strong corporate governance⚫

Maintaining a strong corporate governance(Target) 12 Compliance Committee meetings per year
(Target) Six compliance workshops per year
(Target) A compliance workshop participation rate of 100%
⚫ Internal audits per year

Strengthening risk management⚫

Building industry-leading management capabilities(Target) Four or more Risk Management Committee
meetings per year53

4. Appendix

JPR’s Commitment to Sustainability (2):GovernanceIntroduced asset management fees based on sustainability indicators from January 2024.
Asset management fee (from January 2024)

JPR officers◼

Bolstering supervisory functions, enabling supervision from a broad
perspective to ensure soundness(As of June 30, 2024)

Position

Executive
Officer

Name

Attendance atmeetings of Boardof Directors in 45th
fiscal period

Current Assignment

Yoshihiro President and CEO Tokyo Realty Investment
JozakiManagement, Inc.

6/6
(100%)◼

In light of the changes in the environment surrounding the real estatemarket, JPR introduced asset management fees based onsustainability indicators and to increase the connection between thefees and returns for investors.
Item

Calculation of compensation
Total acquisition price×0.045%+ fees based on sustainability indicators ((i) to (iii) below)(i) GHG emissions: Total acquisition price × 0.002％ × a multiplier in Table 1(ii) Environmental certification: Acquisition price ×0.001% × a multiplier inTable 2(iii) GRESB Assessment: Total acquisition price × 0.001% × a multiplier inTable 3

Management fee 1(Asset-linked fee)

5/6
(83.3%)

Supervising
Officer

MasatoDenawaSupervising
OfficerGroup Representative Partner of Gyosei Certified
Nobuhisa
Public Tax & Accountants' Co.
Kusanagi
Representative Partner of Nobuhisa Kusanagi Office

Supervising
Officer

Konomi
Ikebe

Partner Attorney, Spring Partners

Grand Fellow, Graduate School of Horticulture,
Chiba University

6/6(100%)
6/6(100%)

Management fee 2(Revenue-linked fee)Management fee 3(Cash distribution-linked
fee)Management fee 4(Acquisition/Merger fee)

Asset management fee (results)
ItemManagement fee 1(Asset-linked fee)Management fee 2(Revenue-linked fee)Management fee 3(Cash distribution-linked
fee)Management fee 4(Acquisition/Merger fee)Management fee 5(Sale fee)

Calculation of compensation

Management fee 5(Sale fee)

Remuneration(Jun. ’24 period)

Distributable base amount (excluding gains/losses on real estate sales, etc.)
×3.8%×Rate of fluctuation of distributable base amount per unit
Acquisition price ×1.0% (0.5% when acquired from related parties)
Gain on sale of property ×12.5%*1* The amount obtained when the sale price is multiplied by 0.5% shall be the minimum fee.

Share
(Table 1)

Total acquisition price×0.045%+ fees based on sustainability indicators

247 million yen

23.4%

Total revenue × 1.2%

212 million yen

20.1%

Multiplier

1 + GHG (green house gas) emissions reduction rate

(Table 2)
Environmental certification

Distributable base amount (excluding
gains/losses on real estate sales, etc.)
×3.8%×Rate of fluctuation of distributablebase amount per unit

306 million yen

29.1%

Acquisition price ×1.0% (0.5% when
acquired from related parties)

288 million yen

27.3%

Gain on sale of property ×12.5%

Total revenue × 1.2% (No change)★~★★★

(CASBEE/DBJ Green Building/BELS)(includes uncertified
assets)

★★★★

★★★★★

Multiplier

1.0

1.1

1.2

(Table 3)
GRESB
Assessment

★

★★

★★★

★★★★

★★★★★

Multiplier

0.8

0.9

1.0

1.1

1.2

54

4. Appendix

Unitholders (as of June 30, 2024)■ Number of units by unitholder type
（997,178 units in total）
Securities
Companies
26,300(3%)
Foreign Investors
164,769(17%)

Other domestic
corporations
82,321(8%)

Individuals
38,122(4%)

Financial
Institutions
685,666(69%)

Of which,■ Top unitholders
Rank

Name

Number of
Owned
Units

1

Custody Bank of Japan, Ltd. (Trust Account)

309,050

31.0

2

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

158,721

15.9

3

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

46,305

4.6

4Tokyo Tatemono Co., Ltd.

29,3002.9

5Kawasaki Gakuen

25,000

2.5

6

Meiji Yasuda Life Insurance Company

24,000

2.4

7

STATE STREET BANK WEST CLIENT-TREATY
505234

14,548

1.5

8STATE STREET BANK AND TRUST COMPANY
505103

12,342

1.2

9

JP MORGAN CHASE BANK 385781

12,087

1.2

10

The Shinkumi Federation Bank

11,0891.1

642,44264.4

investment Trusts
incorporating JPR units
395,486

Share
(%)

(40%)

■ Number of unitholders by unitholder type(10,707 unitholders in total)
Foreign Investors
271
(3%)

Securities
Companies
22(0%)

Other domestic
corporations
212
(2%)

Financial
Institutions
177
(2%)

Individuals
10,025
(94%)

Total

55

4. Appendix

Investment Unit Price and Distribution per Unit

■ Changes in unit price
(yen)

JPR

Nikkei stock average (indexation)

800,000
600,000
400,000
200,000
0

'02.6

'03.6

'04.6

'05.6

'06.6

'07.6

(year/
month)

'08.6

'09.6

'10.6

'11.6

'12.6

'13.6

'14.6

'15.6

'16.6

'17.6

'18.6

'19.6

'20.6

'21.6

'22.6

'23.6

'24.6

'08.6

'09.6

'10.6

'11.6

'12.6

'13.6

'14.6

'15.6

'16.6

'17.6

'18.6

'19.6

'20.6

'21.6

'22.6

'23.6

'24.6

■ Changes in JPR dividend yield
(%)

JPR

10y JGB yield

10.0
8.0
6.0
4.0
2.0
0.0
-2.0
'02.6

'03.6

'04.6

'05.6

'06.6

'07.6

■ Changes in cash distribution per unit
(yen)

6,912 6,873
5,738

6,081

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

6,996

6,671

7,122 7,092

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

6,430

6,093 6,031 6,006

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

22

25

6,756 7,048(year/
month)

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

7,595 7,750 7,657 7,550 7,800 7,750 7,600 7,600 7,600

31

37

3,731
2,545

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

23

24

26

27

28

29

30

32

33

34

35

36

38

39

40

41

42

43

44

45 (period)

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

56

4. Appendix

Asset Manager■ Summary of asset manager(as of June 30, 2024)

Name

Tokyo Tatemono Realty Investment Management, Inc.
(TRIM)

Address

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

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO

Yoshihiro Jozaki

Directors

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

Number of Officers

52■ Organization chart(as of June 30, 2024)■ Sponsors(as of June 30, 2024)

Name

Tokyo Tatemono Co., Ltd.

Address

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

Date of Foundation

October 1, 1896

Main Business

Development, leasing and management of office buildings,
commercial facilities, and others
Development, sales, leasing and management of condominiums
and detached houses
Sale/purchase, brokerage and consulting for real estate;parking lot development and management
Leisure business, Logistics facilities development, asset
management business, overseas business, and real estateappraisal

No. of seconded staff from sponsors

10■ Sponsors support

Shareholder’s Meeting
Auditors

No.

Summary of sponsors support

1

Personnel support through dispatching personnel to TRIM
and other measures

2

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

3

Supply of properties and provision on information onproperty acquisition

Board of Directors
President and CEO
Investment Committee

Compliance Committee
Risk Management Committee
Compliance OfficeSustainability Committee

Investment
Management
Division I
Investment
Management
Department I
Investment
Management
Department II
Investment
Management
Department III

Investment
Management
Division II
InvestManagement
Department

Financial Management
Division
Investment
Strategy
Department

Asset Engineering
Department

Investment
Research
Department

Sustainability
Group

Finance & IR
Department

FinancialGroup

Corporate Business
Management
Department

Investor
Relations
Group

57

4. Appendix

Large supply of offices■ Supply, absorption and vacancy rates in Tokyo’s 23 wards■ Breakdown of office building supply by area and by size
(forecast)(By area)

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

（year）

Vacancy rate (%)

86％ (530,000㎡)

2024

Average new supply in
1986-2024: 102

Average new supply
in 2025-2028: 87

77％ (910,000㎡)

2025

18% (150,000㎡)

90％ (540,000㎡)

2027

10% (60,000㎡)

84％ (720,000㎡)

2028

161

23% (280,000㎡)

82％ (680,000㎡)

2026

179

14% (80,000㎡)

5 central wards

141

16% (140,000㎡)

Other 18 wards

125
120

119

(By size)
96（year）

85 86

86

83

2024

5.9
61

5.6

5.8

60

61

2025

71%

68%

(440,000㎡)

32% (380,000㎡)(810,000㎡)

48

4.0

37

1.9

29% (170,000㎡)

66%

2026

1.8

2027

50%

34% (280,000㎡)(550,000㎡)

50% (300,000㎡)(300,000㎡)

-2

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

（year）

2028

95% (810,000㎡)
100,000 sqm or more

5% (50,000㎡)

Less than 100,000 sqm

1. Source: Prepared by TRIM based on the 2024 Survey of Large Office Building Market Trends in Tokyo’s 23 Wards published on May 25, 2024.
2. Absorption refers to newly occupied space (Vacant space as of end of previous period + New supply － Vacant space as of end of current period).

58

4. Appendix

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

Supply（%）

Vacancy rate

14.5

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

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,00012.5

500,000

10.5
400,000

35,0008.5

300,000

25,0006.5

200,000

4.5

100,000

2.5

0

0.5

15,000

5,000(year)

'14.6

'16.6

'18.6

'20.6

'22.6

'24.6

(year/
month)

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

■ Monthly vacancy rates in Tokyo CBDs
Chiyoda Ward
Minato Ward
Shibuya Ward（%）

■ Changes in the vacancy rate of Tokyo CBDs
Chuo Ward
Shinjuku Ward
Tokyo's Central 5 Wards（%）

Class A Bldg.

Class B Bldg.

Class C Bldg.

12.0
10.0

9.0
8.0
7.0
6.0
5.0

4.0
2.0

3.0

0.0
'14.6

1.0
'23.7

'23.8

'23.9

'23.10 '23.11 '23.12

'24.1

'24.2

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

'24.3

'24.4

'24.5

'24.6 (year/
month)

'16.6

'18.6

'20.6

'22.6

'24.6

(year/
month)

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

59

4. Appendix

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

Tokyo (Marunouchi, Otemachi)
NagoyaOsaka (Midosuji)
Osaka (Umeda)
Fukuoka

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

Economy hotel for lodging (Osaka)

8.0

7.5

7.0
6.5

6.0
5.5
5.0
4.5
4.0

3.5

3.0

0
2.5

2.00

(year/
month)(year/
month)

1. Prepared by TRIM based on the Japanese real estate investor survey publicized Japan Real Estate Institute60

4. Appendix

Portfolio Map

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

SaitamaMusashiurawa
Prefecture

A-30

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

A-9
A-24
A-4

A-23

Chiyoda WardTokyo

B-15

A-1
A-2

A-26

B-8
A-13

A-5

Tachikawa

B-7
B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

A-6

Minato Ward

A-1

Kinshicho

B-14

Chiba

B-4

KawasakiB-5

Hamamatsucho

A-15

B-1

B-2

A-25

A-29

B-11

Musashikosugi

Chuo Ward

ShibuyaB-7

ShinagawaShinbashi

A-18

Chiba
Prefecture

B-3

Kawaguchi
B-1

A-21

Harajuku

B-6

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

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

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

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

TamachiB-10

Kamioka

A-6

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-15

Nakano Central Park East

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

■Other Cities
GotandaShinagawa
A-16

A-10

OhsakiShinagawa Ward

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi West

C-23

GRAND FRONT OSAKA (Umekita Plaza and South Bldg.)

C-24

GRAND FRONT OSAKA (North Bldg.)

C-25

JPR Dojima WestC-5

JPR Chayamachi Bldg.
SendaiA-1

Kanematsu Bldg.

A-15

Minami Azabu Bldg.

A-26

Tokyo Square Garden

A-2

Kanematsu Bldg. Annex

A-16

Shinagawa Canal Bldg.

A-27

JPR Kojimachi Bldg.

C-14

Tenjin 121 Bldg.

A-3

JPR Ningyo-cho Bldg.

A-17

Rokubancho Bldg.

A-28

Otemachi Financial City North Tower

C-20

Yakuin Business Garden

A-4

Shin-Kojimachi Bldg.

A-18

JPR Harajuku Bldg.

A-29

Tokyo Tatemono Higashi Shibuya Bldg.

C-6

FUNDES Tenjin Nishidori

A-6

MS Shibaura Bldg.

A-30

Ochanomizu Sola City

A-9

JPR Ichigaya Bldg.

A-10

Oval Court Ohsaki Mark West

A-11

Shinjuku Square Tower

A-12

BYGS Shinjuku Bldg.

A-13

Across Shinkawa Bldg. Annex

A-14

Shinjuku Center Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-21

JPR Sendagaya Bldg.

A-1

JPR Shibuya Tower Records Bldg.

A-3

JPR Jingumae 432

A-4

Shinjuku Sanchome East Bldg.

(Land with Leasehold Interest)

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-24

Science Plaza - Yonbancho Plaza

A-6

JPR Ginza Namiki-dori Bldg.

A-25

Shibadaimon Center Bldg.

A-7

FUNDES Suidoubashi

A-22

Ginza Sanwa Bldg.

A-23

The Otemachi Tower

Niigata

NagoyaKobe

Fukuoka

Osaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

61

4. Appendix

Portfolio List (Central Tokyo)

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

A-2 Kanematsu Bldg. Annex
16,276 million yen
14,995 ㎡
100.0％
Kyobashi,Chuo-ku
2001.12
1993.2A-6 MS Shibaura Bldg.
11,200 million yen

Acquisition
Date
Completed2003.331,020 ㎡
32.2％
MinatoWard

1988.2

A-12 BYGS Shinjuku Bldg.

Acquisition
Date
Completed

Acquisition
Date
Completed

A-3 JPR Ningyo-cho Bldg.
2,874 million yen
4,351 ㎡
100.0％
Kyobashi,Chuo-ku
2001.12
1993.2A-9 JPR Ichigaya Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

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

25,733 ㎡
99.8％
Shinjuku,
Shinjuku-ku‘04.11/’05.4/‘10.7
1985.4

A-16 Shinagawa Canal Bldg.

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

5,888 ㎡
87.0％
Kudanminami,
Chiyoda-ku
2004.5
1989.3710 million yen
5,535 ㎡
100.0％
Shinkawa,
Chuo-ku
2004.111994.6

A-17 Rokubancho Building

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,041 million yen

Acquisition
Date
Completed‘08.12/’19.3

5,216 ㎡
100.0％
Konan, Minato-ku

2008.7

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

Acquisition
Date
Completed

A-4 Shin-Kojimachi Bldg.
2,100 million yen
4,117 ㎡
100.0％
Chuo Ward
Nihonbashiningyocho, Chuo-ku
2001.11
1989.12

A-10 Oval Court Ohsaki Mark West5,100 million yen

A-13 Across Shinkawa Bldg. Annex
15,121 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed3,500 million yen
28,575 ㎡
100.0％
Higashigotanda,
Shinagawa-ku
2004.6
2001.6

A-14 Shinjuku Center Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

4,205 ㎡
100.0％
Rokubancho,
Chiyoda-ku
2009.12
1991.10

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

Acquisition
Date
Completed

2,420 million yen
5,152 ㎡
96.7％
Kojimachi,
Chiyoda-ku‘01.11/’02.11/’04.11
1984.10

A-11 Shinjuku Square Tower
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

14,966 million yen
78,796 ㎡ (entire
redevelopment area)

98.5％
Nishishinjuku,
Shinjuku-ku‘04.7/’08.9/‘15.3/’15.10
1994.10

A-15 Minami Azabu Bldg.
24,320 million yen
176,607 ㎡
97.4％
Nishishinjuku,
Shinjuku-ku‘08.3/’22.12
1979.10

A-18 JPR Harajuku Bldg.
2,800 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

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

3,760 million yen
4,570 ㎡
100.0％
Minamiazabu,
Minato-ku
2008.7
1992.6

A-20 JPR Nihonbashi-horidome Building
8,400 million yen
6,466 ㎡
100.0％
Jingumae,
Shibuya-ku
2009.12
1989.3AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

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

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

62

4. Appendix

Portfolio List (Central Tokyo)

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

15,050 million yen
7,683 ㎡
100.0％
Sendagaya,
Shibuya-ku
2010.52009.5

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

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

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

11,300 million yen
15,662 ㎡
100.0％
Higashi,
Shibuya-ku
2022.1
1993.5A-4 Shinjuku Sanchome East Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
CompletedA-23 The Otemachi Tower(Land with Leasehold Interest)

A-22 Ginza Sanwa Bldg.

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

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,400 million yen

Acquisition
Date
Completed2011.88,851 ㎡
100.0％
Ginza, Chuo-ku

1982.10

Aｰ26 Tokyo Square Garden
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

Acquisition
Date
Completed112,645 ㎡
99.9％
Kyobashi, Chuoku‘17.2/’17.4
2013.2Acquisition
Date
Completed

Period-end
occupancy rate
Address

100.0％

Acquisition
Date
Completed

11,034 ㎡

Otemachi,Chiyoda-ku
2012.32014.4 (Reference)

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

96,897 ㎡
99.3%
Kandasurugadai,
Chiyoda-ku
2023.42013.23,400 million yen
71,957 ㎡
100.0％
Yurakucho,
Chiyoda-ku
2008.82007.10

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

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

A-28 Otemachi Financial City North Tower
5,750 million yen
4,438 ㎡
100.0％
Kojimachi,
Chiyoda-ku
2019.6
1999.2A-1 JPR Shibuya Tower Records Bldg.
6,490 million yen

A-5 Yurakucho Ekimae Building(Yurakucho Itocia)
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

36,000 million yen

A-27 JPR Kojimachi Bldg.
18,400 million yen

A-30 Ochanomizu Sola City
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

Acquisition
Price
Site area

12,000 million yen
8,449 ㎡
100.0％
Jinnan,Shibuya-ku
2003.6
1992.2A-6 JPR Ginza Namiki-dori Building
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,100 million yen

Acquisition
Date
Completed2016.12

1,821 ㎡
100.0％
Ginza, Chuo-ku

2008.6

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

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

87.7％
Otemachi,Chiyoda-ku
2020.122012.10A-3 JPR Jingumae 432
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

4,275 million yen
1,066 ㎡
100.0％
Jingumae,
Shibuya-ku
2006.32006.2A-7 FUNDES Suidoubashi
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

3,250 million yen
1,477 ㎡
100.0％
Kandamisakicho,
Chiyoda-ku
2016.122015.7

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

63

4. Appendix

Portfolio List (Central Tokyo and Greater Tokyo)

B-1 Arca East

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

5,880 million yen

Acquisition
Date
Completed2001.1134,281 ㎡
100.0％
Kinshi, Sumida-ku

1997.3B-6 Kawaguchi Center Bldg.
8,100 million yen
28,420 ㎡
100.0％
Kawaguchi,
Saitama2004.2Acquisition
Date
Completed1994.2

B-10 Yume-ooka Office Tower

Acquisition
Date
Completed

2,350 million yen

Acquisition
Date
Completed2001.12

9,072 ㎡
97.5％
Chiba, Chiba

1991.1B-7 JPR Ueno East Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-3 JPR Yokohama Nihon Odori Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

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

185,974 ㎡
100.0％
Yokohama,
Kanagawa
2007.7
1997.3B-14 Sencity Bldg.

8,490 ㎡
100.0％
Matsugaya,
Taito-ku
2004.3
1992.10

13,870 million yen

31,300 million yen

Period-end
occupancy rate
Address

98.4％

Acquisition
Date
Completed2009.6

Period-end
occupancy rate
Address

96.1％

Acquisition
Date
Completed2020.3

158,663 ㎡ (entire
redevelopment area)

Chiba, Chiba

1993.4

AcquisitionPrice
Total Floor
Space
Period-end
occupancy
rate

9,146 ㎡
98.4％
Yokohama,
Kanagawa
2001.11
1989.10

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,188 million yen

Acquisition
Date
Completed‘05.9/’07.2

14,706 ㎡
100.0％
Tachikawa, Tokyo

1994.12257,842 ㎡(including retail andresidential blocks)

Taihei, Sumida-ku

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

B-5 Shinyokohama 2nd Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

1,490 million yen
7,781 ㎡
96.9％
Yokohama,
Kanagawa‘02.9/’13.3
1991.8B-9 Rise Arena Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

13,131 million yen
91,280 ㎡ (including
residential block)100.0％
Higashiikebukuro,
Toshima-ku‘07.3/’21.10
2007.1

B-13 JPR Omiya Bldg.

B-12 JPR Yokohama Bldg.

AcquisitionPrice
Total Floor
Space

7,000 million yen
8,772 ㎡
100.0％
Yokohama,
Kanagawa
2010.12
1981.5AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

6,090 million yen

Acquisition
Date
Completed2013.39,203 ㎡
100.0％
Saitama, Saitama

2009.2

2006.2

B-15 Nakano Central Park East

AcquisitionPrice
Total Floor
Space

Acquisition
Date
Completed

2,927 million yen

B-8 Tachikawa Business Center Bldg.
3,250 million yen

B-11 Olinas Tower
6,510 million yen

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-1 Tanashi ASTA
28,800 million yen
37,870㎡
96.7%

AddressNakano, Nakano-ku

Acquisition
Date2024.3Completed2012.3B-3 Cupo-la Main Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,200 million yen

Acquisition
Date
Completed2001.1180,675 ㎡
100.0％
Nishitokyo, Tokyo

1995.2AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

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

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

64

4. Appendix

Portfolio List (Greater Tokyo and Other Cities)
B-5 Musashiurawa Shopping Square

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

7,254 million yen
18,394 ㎡
100.0％
Kawasaki,Kanagawa
2006.91983.3C-1 Niigata Ekinan Center Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,140 million yen

Acquisition
Date
Completed2001.11

19,950 ㎡
100.0％
Niigata, Niigata

1996.3C-14 Tenjin 121 Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

4,335 million yen

Acquisition
Date
Completed2007.328,930 ㎡
100.0％
Saitama, Saitama

2005.10C-9 JPR Naha Bldg.

2,810 million yen

Acquisition
Date
Completed2002.68,690 ㎡
100.0％
Fukuoka, Fukuoka

2000.7

C-21 JPR Shinsaibashi Bldg.

1,560 million yen

Acquisition
Date
Completed2001.115,780 ㎡
100.0％
Naha, Okinawa

1991.105,430 million yen

Acquisition
Date
Completed2005.55,303 ㎡
93.9％
Osaka, Osaka

2003.2(Extended 2005.1)

15,080 million yen
36,902 ㎡
98.4％
Kawasaki,Kanagawa
2007.4

Acquisition
Date
Completed2003.8AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address
Acquisition
Date
Completed

2,140 million yen

Acquisition
Date
Completed2004.1

5,696 ㎡
100.0％
Osaka, Osaka

1993.10

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

10,783 ㎡
98.2％
Sendai, Miyagi
2002.6
1997.123,750 million yen

Acquisition
Date
Completed2020.1

7,738 ㎡
99.9％
Osaka, Osaka

1986.93,800 million yen

Acquisition
Date
Completed2019.62,235 ㎡
100.0％
Ueno, Taito-ku

2017.7

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

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

C-20 Yakuin Business Garden

4,137 million yen
10,201 ㎡
99.8％
Nagoya, Aichi
2005.3
1991.3C-23 GRAND FRONT OSAKA(Umekita Plaza and South Building)AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

C-13 Sompo Japan Wakayama Bldg.

3,150 million yen

C-19 JPR Nagoya Fushimi Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

C-22 JPR Shinsaibashi West

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-7 FUNDES Ueno

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

C-12 Sompo Japan Sendai Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

C-17 JPR Dojima Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

B-6 Kawasaki Dice Bldg.

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

11,800 million yen

Acquisition
Date
Completed2021.12

10,226 ㎡ (Umekita Plaza)
181,371 ㎡ (South Bldg.)
91.8％
Osaka, Osaka‘13.2 (Umekita Plaza)’13.3 (South Bldg.)

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

10,996 million yen

Acquisition
Date
Completed2012.822,286 ㎡
99.9％
Fukuoka, Fukuoka

2009.1

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

9,500 million yen

Acquisition
Date
Completed2021.12290,030 ㎡
98.7％
Osaka, Osaka

2013.2

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

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4. Appendix

Portfolio List (Other Cities)

C-25 JPR Dojima WestC-4 Housing Design Center Kobe

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

2,460 million yen

Acquisition
Date
Completed2023.1

4,977㎡
90.0%
Osaka, Osaka

1996.7

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

7,220 million yen

Acquisition
Date
Completed2005.933,877㎡
100.0％
Kobe, Hyogo

1994.6C-6 FUNDES Tenjin Nishi DoriC-5 JPR Chayamachi Bldg.
AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

6,000 million yen

Acquisition
Date
Completed2006.83,219㎡
100.0％
Osaka, Osaka

1994.6

AcquisitionPrice
Total Floor
Space
Period-end
occupancy rate
Address

3,310 million yen

Acquisition
Date
Completed2023.1

1,135㎡
100.0%
Fukuoka, Fukuoka

2022.3

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

664. Appendix

Introduction to the JPR Website http://www.jpr-reit.co.jp/ 8955

Expanding IR information with sustainability initiatives and diverse content and disseminatingtimely information
Sustainability Initiatives

A range of initiatives at JPR and TRIM are described in aneasy-to-understand way.

Portfolio Information• Portfolio Summery
Ratio by grade/asset class, Ratio by area,
Ratio by Rent Zone,
Ratio by number of minutes walk from nearest station• Occupancy Rate
Monthly update of each property data

Property Overview
and Access Map• Property Overview
Property features, specifications,operating conditions, etc.

• Access Map
UART search function fromthe nearest station

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4. Appendix
Term

Glossary
Meaning

Acquisition Price

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

Asset size

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

Investment ratio

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

Occupancy rate
based on concluded
contracts

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

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

Average unit rent

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

Term

Meaning
The definitions of building classes used in “Ratio by grade/asset class“ on page 13 is as follows,which TRIM sets.
Target area: Tokyo’s 23 ward
Class S: Comprehensive consideration from Bldg. scale, location, Bldg. age, etc. of the following
Class AClass A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or moreClass B: Floor size of 200 tsubo or moreClass C: Floor size of 100 tsubo or more but less than 200 tsubo

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and“Changes in the vacancy rate of Tokyo CBDs” on page 59 are as follows, which Sanko Estate Co.,
Ltd. and NLI Research Institute sets.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage
of office buildings in surrounding wards (Gotanda/Osaki, Kita-shinagawa/Higashi-shinagawa,Yushima/Hongo/Koraku, Meguro-ku)
Class A: Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age less than
15 years
Class B: Floor size of 200 tsubo or more, not applicable of A class building (including of building
except for A class of age more over 15 years)
Class C: Floor size of 100 tsubo or more but less than 200 tsubo

Properties acquired
using sponsor
pipelines

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

Ratio ofincrease/decrease
on rent revision

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

Rate of tenant
replacement

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

NOI yield

Rent revision

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

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

Tenant replacement

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

After-depreciation
yield
Number of tenants

Rent gap

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

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

Ratio of long-term,
fixed interest ratedebts

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

Average maturity

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

Average debt cost

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

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

Tokyo/ Other cities“Tokyo” defined by JPR as its investment area collectively refers to “Central Tokyo” and“Greater Tokyo” as defined below, and “Other Cities” refers to other regions.
・ Central Tokyo: Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards
・ Greater Tokyo: All other areas of Tokyo Prefecture, and Chiba, Kanagawa and Saitama
Prefectures

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

Cap rate

Capitalization rate by the direct capitalization method Direct capitalization method is one of themethods to calculate the value estimated by income approach (a method to estimate the valueof the target property by calculating the sum total of present value of the net operating income
which the target property is expected to generate in the future), and capitalizes the net
operating income of a certain period by using the capitalization rate.

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

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

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