J-PRIME

27th
JAPAN PRIME REALTY INVESTMENT CORPORATION （8955）
Presentation Material
for the 27th Fiscal Period Ended June 2015
August 20, 2015
（Asset Manager）
Tokyo Realty Investment Management, Inc.

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

Table of Contents
1. Characteristics of JPR

1.

2p

2. Operating Results and Forecasts of Financial Results4p

2.
3.
4.
5.

3. Management Status and Strategies

15p

6.

3-1. Internal Growth

16p

7.

3-2. External Growth20p

3-3. Financial Operations and Others

22p

3-4. Future Growth Target

26p

4. Appendix

27p

Disclaimer
1.

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

2.

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

3.

Unless otherwise noted, the figures indicated in the body texts of this material are rounded down to the nearest
specified unit for monetary amounts and space areas, and rounded off to the nearest specified unit forpercentages, number of years and average values. Accordingly, the sum totals of monetary amounts orpercentages of respective items may not match the sum totals of actual figures.

8.

9.
10.

11.

12.

14.
15.
16.
17.

16.

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

2

1. Characteristics of
JPR

Large Scale REIT Focused on Office Properties inTokyoWith the recovery in the office property leasing market under way, Japan Prime Realty Investment
Corporation will work to reinforce its potential for stable growth over the long term, aiming toenhance unitholder value.
 Characteristics of JPR (as of Jun. 30, 2015)

 Results of Distribution per Unit (DPU)

1. Portfolio

Conducts stable cash distributions from accounts settled as many as 27 times through thelatest fiscal period ended June 2015

Constructed a combined portfolio with focused investment in office properties inTokyo as the basic strategy
Total assets:

409.5 billion yen

Diversification byasset class and area

：TokyoNo. of properties: 62

83.1%/ office 76.8%

25th period

26th period

27th period(Jun. 30, 2014)(Dec. 31, 2014)(Jun. 30, 2015)

6,150 yen

6,351yen

6,419yen Major Properties and Investment Area
Focuses on the Tokyo area while conducting diversified investment in major regional cities

2. Financial Base
Established a strong financial base with basic policy of conservatively controlling LTV,
lengthening the maturity of debts, diversifying repayment dates and increasing theratio of fixed interest rate debs, etc.

LTV：42.1%
No. of lenders：24

Ratio of long term, fix
interest rate debts：

A dot indicates aproperty, grouped by city
and area where it islocatedTokyo Office

99.4%

Credit rating：AA- (R&I)

Other Cities Office
RetailOtemachi Tower

Shinjuku Center Bldg.

Olinas Tower(Land with leasehold interest)(Shinjuku-ku, Tokyo)(Sumida-ku, Tokyo)(Chiyoda-ku, Tokyo)

Sendai
Niigata

3. Sponsors
Utilizes the comprehensive capabilities of the five sponsor companies (Tokyo
Tatemono, Taisei Corporation, Yasuda Real Estate, Sompo Japan Nipponkoa
Insurance and Meiji Yasuda Life Insurance) in the areas of real estate, construction
and financeTotal amount of acquisitions fromsponsors, etc. and based on
billion yen
information provided by sponsors:

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

Tokyo
NagoyaOsaka
Fukuoka
Yakuin Business Garden

Kawasaki Dice Bldg.

(Fukuoka, Fukuoka)(Kawasaki, Kanagawa)

Kobe
WakayamaNaha

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

Financial Highlights for the 27th Fiscal Period
Ended June 2015 (1)DPU came to JPY6,419 for the 27th fiscal period (up 1.1% period-on-period). DPU for the 28th fiscal
period is forecast to be JPY 6,510 (up 1.4% period-on-period)
Steadily increased DPU toward the medium-term target established in the fiscal period ended Dec.
2014, and reinforced the grounds for stable growth over the long term
Policies and Forecasts
Distribution
per Unit

Internal
Growth• Achieve growth in stages toward the
medium-term target of JPY6,500[27th] 6,360 yen (up 0.1% period-on-period)• Implement leasing with a focus on rent levels
and promote contract renewal with upwardrevision of rents
Rent revenue (from existing properties)+34mn yen
Average occupancy rate 97.5%• Conduct value enhancement works in
preparation for future growth

External
Growth• Continue vigorously selective investments• Expand pipelines for additionally acquiringsponsors’ properties and co-owned
properties preferentially• Promote further extending maturity of debts andreduction of interest-bearing debt cost

Financial, etc.

Results• Current period’s results surpassed previous period’s results and forecast[Result] 6,419円（up +1.1% period-on-period, up +0.9% from forecast）[28th (forecast)] 6,510 yen, [29th(forecast)] 6,550 yen• With leasing progressing smoothly, rent revenue continued to increase following theprevious period
Rent revenue(from existing properties) +138 million yen (up 103 million yen fromforecast)※ Rent revenue and other income includes cancellation penalty
Average occupancy rate 97.5% (up 0.3% period on period)
Average unit rent per tsubo 14.4 thousand yen (up 0.4% period on period)• Additionally acquired co-ownership of Shinjuku Square Tower (use of preferential
negotiation rights)• Continuously investigated sponsor-developed properties and selectively investigatedclosed-bit deals• Conducted equity procurement of 18.3 billion yen by issuing new investment units(48,000 units; including third-party allotment)• Clean unrealized losses (JPY 2 billion)• Lowered LTV to 42.1%, expanding property acquisition capacity through debt
financing to 65.0 billion yen• Lower LTV to 46.1%• New financing resulted in 7.0 billion yen, average agreed period 9.7 years andaverage financing interest rate 1.04%• Cleaned unrealized losses and achieved unrealized gains of 9.3 billion yen (up 11.3
billion yen period-on-period)(Note 1) “Acquisition capacity” represents an estimate figure for the sum total of the possible acquisition value of properties to be acquired through debt financing, or the debt capacity (allowed amount of increase through debt financing)
until LTV reaches 50%, which is the target upper limit of JPR in controlling LTV. However, the figure makes no guarantee as to the amount of debt financing or realization of new property acquisitions by using funds through such debt
financing. The same applies hereafter.
(Note 2) “Existing properties” refer to properties that JPR has held throughout each fiscal period since the 26th fiscal period ended December 2014.

5

2. Operating Resultsand Forecasts ofFinancial Results

Financial Highlights for the 27th Fiscal Period Ended June2015 (2)26th Period

27th Period (forecasts)

27th Period (result)(Dec. 31, 2014)(Jun. 30, 2015)(Jun. 30, 2015)

Change(26th
period)Change(27th
forecast)

28th Period (forecasts)(Dec. 31, 2015)

Change(27th
Period)29th Period (forecast)(Jun. 30, 2016)

Change(28th
Period)13,902 mn

13,871 mn

14,251 mn

2.5%

2.7%

14,043 mn-1.5%

14,053 mn

0.1%

NOI

9,010 mn

8,977 mn

9,260 mn

2.8%

3.1%

9,368 mn

1.2%

9,324 mn

-0.5%

Net income

5,238 mn

5,247 mn

5,603 mn

7.0%

6.8%

5,684 mn

1.4%

5,719 mn

0.6%

Distribution per unit

6,351 yen

6,360 yen

6,419 yen

1.1%

0.9%

6,510 yen

1.4%

6,550 yen

0.6%

Total number of units outstanding

825,000 units

825,000 units

873,000 units

5.8%

5.8%

873,000 units－%

873,000 units－%

Properties owned at end of period

62 properties

62 properties

62 properties－%－%

62 properties－%

62 properties－%

Total acquisition price405,520 mn

405,520 mn

409,520 mn

1.0%

1.0%

409,520 mn－%

409,520 mn－%

Appraisal value

387,697 mn－ mn

401,948 mn

3.7%

－

－

－

－

－

NOI yield (before depreciation)

4.4%

4.5%

4.6%

0.2%p

0.1%p

4.6%

－ %p

4.6%

－ %p

NOI yield (after depreciation)

3.5%

3.6%

3.7%

0.2%p

0.1%p

3.6%

-0.1%p

3.7%

0.1%p

Period-end occupancy rate

97.0%

97.4%

96.7%

-0.3%p

-0.7%p

97.0%

0.3%p

96.6%

-0.4%pAverage occupancy rate

97.2%

97.5%

97.5%

0.3%p

－ %p

97.2%

-0.3%p96.7%-0.5%p14.3 thousand yen

14.3 thousand yen

14.4 thousand yen

0.4%

0.3%

14.4 thousand yen-0.2%

14.4 thousand yen

0.4%

Average interest rate of interestbearing debts

1.27%

1.24%

1.21% -0.06%p -2.42%p

1.19% -0.02%p

1.15% -0.03%p

LTV

46.1%

46.1%

42.1%

-4.0%p

-4.0%p42.1%-0.0%p42.1%-0.0%p230,437 yen－

251,804 yen

9.3%

－

－

－

－

－

Operating revenue

Average unit rent per tsubo

NAV per unit

(Note 1) The forecast for the current (27th) fiscal period was made upon the announcement of financial results of the previous fiscal period.
(Note 2) Figures for total number of units outstanding, properties as owned at end of period, total acquisition price, appraisal value, period-end occupancy rate, average unit rent per tsubo, LTV and NAV per unit are as of the end of each fiscal
period.
(Note 3) The average unit rent is calculated based on the amounts indicated in the lease agreements with tenants, etc. For some properties, common charges, etc. not recorded as JPR’s revenue but received by the master lessees are included in
the calculation.

6

2. Operating Resultsand Forecasts ofFinancial Results

Change in Distribution per Unit

DPU remains on track of stable growth despite impacts of dilution as a result of issuing investment
units through public offerings
Aim to achieve stable growth over the long term by effectively working on external growth andinternal growth in the changing business environment
 Change in Distribution per Unit

Forecast

Actual result

5th Public Offering

6th Public Offering

Additional listing: Jul. 2012
No. of units: 110,000
Dilution ratio: 13.3%

Additional listing: Jun. 2015
No. of units: 48,000
Dilution ratio: 5.5%

(Yen/unit)

6,510
6,500
Temporary increase inearnings due to inclusion ofamount equivalent toproperty taxes, etc. forproperties newly acquiredin 21st period levied for theyear of acquisition as costof acquisition

6,400

6,550

6,419

6,430

6,351

6,150

6,360

6,180

6,093

6,000

6,031

6,000

6,006

6,050

5,876
5,800
5,600 5,611

5,800

5,700

0
5,500
Total number ofinvestment units
outstanding at
period end

715,000

715,000

715,000

825,000

825,000

825,000

825,000

825,000

873,000

873,000

873,000

19th Period

20th Period

21st Period

22nd Period

23rd Period

24th Period

25th Period

26th Period

27th Period

28th Period

29th Period(forecast)(forecast)(Note) DPU includes the portion from the temporary increase in earnings due to inclusion of amount equivalent to property taxes, etc. for newly acquired properties levied for the year of acquisition as cost of acquisition.

7

2. Operating Resultsand Forecasts ofFinancial Results

Factors of Period Changes in DPU

For the 27th fiscal period, temporary revenue such as cancellation penalty for tenants’ move-outs,
income equivalent to expenses for restoration to original condition and subsidies was recorded
DPU is expected to reach the medium-term target in the 28th fiscal period as a result of ourendeavors on steady implementation of leasing and appropriate cost control
 Factors of Period-on-Period Changes in DPU
26th Period(Actual Result)

27th Period (Jan. 1, 2015-Jun. 30, 2015)(Actual Result)

28th Period (Jul. 1 2015- Dec. 31, 2015)(Forecast)

29th Period (Jan. 1, 2016-Jun. 30, 2016)(Forecast)(Yen/unit)
Increase due to settlement ofmanagement associationaccounts and subsidy
income, etc. on top of
reduced interest expenses+174
Increase due to cancellation
penalty and income
equivalent to expenses forrestoration to original
condition, etc.

-124
+282

+34

-373

Rent revenue is assumed todecrease because of thedown time after tenant’s
cancellation at suchproperties as Gotanda First
Bldg. and Kanematsu Bldg.
Annex+12 6,510 +21

6,419
6,351

26th
DPU
(Result)(Note)

-57

+82

+86

-26

+73

Rent
Revenue

6,550
-10

Other
rentalRevenue

ExpenseRentalNonrelated to income
operatingrentfrom newincomeBusiness properties
etc.
etc.

Dilution
due topublicoffering

27th
DPU(Result)

Rent
Revenue

Increase due to lack of
expenses forrestoration to original
condition and review ofvalue enhancement
works, etc.

-299

+322

Other
rentalRevenue

ExpenseRentalNon28threlated toincome operating
Rent
rent
DPU
from new income
Revenue
Business(Forecast)properties
etc.
etc.

Other
rentalRevenue

ExpenseNon29threlated tooperatingrent
DPU
incomeBusiness(Forecast)
etc.
etc.

The factors of period-on-period fluctuations show the amounts obtained by dividing the period-on-period fluctuation amounts of respective periods by the total number of investment units outstanding at period end (for the 27th
period, the number of investment units outstanding at end of the 26th period).

8

2. Operating Resultsand Forecasts ofFinancial Results

Public Offering

Conducted public offering in order to expand the acquisition capacity through debt financing andenhance JPR’s potential for stable growth over the long term Purpose Overview

1. Expand the property acquisition capacity through debt financing

Offering type

Domestic public offering

Expanded acquisition capacity allows expansion of investment size as well as enhances
capacity for diversified investment in consideration of the risk-return profile. JPR will
endeavor on vigorously selective investments in blue-chip properties by utilizing theacquisition capacity in a dynamic manner.

Number of new
investment units
issued48,000 units (Primary offering: 45,700 units,
OA: 2,300 units)

2. Further reinforce the financial base
JPR works to appropriately control LTV, targeting to keep it at 50% or lower, with an aim
to further reinforce its financial base so that it can adapt to future changes in businessenvironment.

3. Enhance potential for stable growth over the long term
Timed to the growth phase through internal growth JPR is entering, JPR aims to achieve
the medium-term target for DPU as well as realize stable growth over the long term
through external growth by utilizing its acquisition capacity.

BeforePublic Offering

After
Public Offering

LTV

46.8%

42.1%

Acquisition capacity

26.5 billion yen

65.0 billion yen

Potential DPU throughexternal growth after
leverage adjustment

Maximum

Maximum＋410 yen＋960 yen

Growth target (DPU)

6,500 yen

Stable growthachieving over

6,500 yen

(Note 1) “Potential DPU through external growth after leverage adjustment” is a result of a trial calculation based on the conditions assumed

5.5% ※Number of new investment units / (Total Number of

Dilution ratio

unit outstanding+ Number of new investment units)

Total amount ofoffering

18,954 million yen (OA 908 million yen)
※ Base on issue price

Public 55: Institutional 45 (initially 60：40)
Portion*Credit unions and credit associations, etc. are classified as
institutional

Issue resolution
date
Determination ofprice dateJune 1, 2015
June 9, 2015

Payment dateJune 16, 2015

Issue price／Amountto be paid in

394,875 yen ／ 382,320 yen

Discount rate

2.5%

 Change in DPU (forecast)
26th Period(Result)

27th Period(Forecast)

28th Period(Forecast)

29th Period(Forecast)

6,351 yen

6,360 yen－－－

6,370 yen

6,500 yen

6,550 yen

As of Feb.
13, 2015
As of Jun.
1, 2015by JPR, and does not guarantee that the figure is realized.
(Note 2) “Growth target (DPU)” which is nothing but JPR’s policy target for its management, is not related to the operating forecasts, etc.
that JPR announces, and does not guarantee that the figure is achieved.

(Note) The figures are based on the operating forecasts announced in “Notice Concerning Revisions to Operating Forecasts for the
Fiscal Period Ending June 30, 2015 and Operating Forecasts for the Fiscal Periods Ending December 31, 2015 and June 30,
2016” dated June 1, 2015.

9

2. Operating Resultsand Forecasts ofFinancial Results

Statement of Income and Retained Earnings
for the 27th Fiscal Period Ended June 2015
（JPY mn）

Item

Rental revenue
Other rental revenue
Rental revenue - real estate (a)Operating revenue
Property and other taxes
Other expense related businessOutsourcing expense
Utilities expense
Casualty insurance
Repairs and maintenance
Property management fee
Management association accounts

OthersDepreciation
Expenses related rent business (b)Asset management fees
Other operating expenses
Operating expenses
Operating income
Profits (a-b)
Net operating income (NOI)
Non-operating income
Interest expenses
Other non-operating expenses

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income
Unappropriated retained earnings

Total number of units outstanding at end of period

Distributions per units (DPU)

26th Period

27th Period(Jul 1, 2014-Dec 31, 2014)(Jan.1, 2015-Jun.30, 2015)

13,043859
13,902
13,902
1,985
2,907
529
983
27
445
231
556
134
1,841
6,733
485
206
7,425
6,477
7,169
9,010
11
1,142
107
1,250
5,239
－
5,239
5,238
5,259

Changes

13,1591,092
14,251
14,251
2,026
2,964
527
898
27
566
238
576
129
1,854
6,845
503
205
7,554
6,697
7,406
9,260
50
1,073
108
1,181
5,566
37
5,603
5,603
5,623

115
233
348
348
41
57
-1
-84
0
121
6
20
-4
13
112
17
0
129
219
236
250
38
-69
1
-68
327
37
364
364
363

825,000 units 873,000 units

48,000 units

6,351 yen

6,419 yen

68 yenBreakdown of Increase/ Decrease in Income (JPY mn)
Increase Decrease
External growth (properties acquired in 27th and 26th periods)

Increase in NOI of properties acquired in 27th period
Increase in NOI of properties acquired in 26th period

Increase in NOI（Revenues） Increase in rent revenue

17

Increase in income equivalent to expenses for restoration to original condition

Increase in others（Expenses） Decrease in utilities expenses (seasonal factor, etc.)

89

Increase in management association accounts cost

（Revenues） Increase in settlement of management association accounts

Incease in insurance revenue（Expenses）

Decrease in interest expenses

16

Dilution due to public offering+129 yen

107
37
1
69

37
37

The item is recorded only infiscal periods ending June91
each year
Reduction as a result of
refinancing

1

Increase in other non-operating expenses

Extraordinary income
Increase in subsidy income

Recorded implemented works
corresponding to the above
income equivalent to
expenses for restoration tooriginal condition

4

Increase in asset management fees and administration service fees

Financial costs and other non-operating income and expenses

Increase due to agreed
389 at suchcancellation
properties as Gotanda First
Bldg. and Kanematsu Bldg.
Annex

37
120
17

Increase in repairs and maintenance cost

Decrease in depreciation

Rent revenue from existing168
properties increased

77
243
1
85

Increase in property and other taxes

Additional acquisition of
Shinjuku Square Tower
contributed (additional
revenue for approximately 3months)+232 yen

191
204
60

Decrease in incidental income (seasonal factor, etc.)

Increase in cancellation penalty, etc.

+34 yen

28
38
6

Increase in depreciation related to the above properties

Internal growth (continuously owned properties)

Conversion
to DPU+45 yenRecorded subsidies forproperties eligible for thegovernment’s EnergyEfficient Renovation
Promotion Grant Program-373 yen(Note 1)

JPR added part of the retained earnings brought forward that had been internally reserved through the preceding fiscal period to the cash distributions an
d delivered the amount arrived at when the number of investment units outstanding is multiplied by an integer as profit distributions, with the aim of having the profit distributions deducted as expenses based on application of the special provision on taxation of investment corporations (Article
67-15 of the Act on Special Measures Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income
tax, etc.
(Note 2) “Converted to DPU” indicates the amount obtained by dividing the degree of period-on-period changes in profits by the number of investment units
outstanding at end of period (for the 27th period, the number of investment units outstanding at end of the 26th period). The same applies hereafter.

102. Operating Resultsand Forecasts ofFinancial Results

Comparison with Forecasts of Financial Results
for the 27th Fiscal Period Ended June 2015
（JPY mn）

Item

Rental revenue
Other rental revenue
Rental revenue - real estate (a)Operating revenue
Property and other taxes
Other expense related businessOutsourcing expense
Utilities expense
Casualty insurance
Repairs and maintenance
Property management fee
Management association accounts

OthersDepreciation
Expenses related rent business (b)Asset management fees
Other operating expenses
Operating expenses
Operating income
Profits (a-b)
Net operating income (NOI)
Non-operating income
Interest expenses
Other non-operating expenses

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income
Unappropriated retained earnings

Total number of units outstanding at end of period

Distributions per units (DPU)

27th Period

27th Period(Forecast)(Result)

13,089781
13,871
13,871
2,048
2,844
529
936
27
404
232
577
137
1,844
6,737
486
242
7,466
6,404
7,133
8,977
43
1,091
107
1,199
5,248
－
5,248
5,247
5,268

Changes

13,1591,092
14,251
14,251
2,026
2,964
527
898
27
566
238
576
129
1,854
6,845
503
205
7,554
6,697
7,406
9,260
50
1,073
108
1,181
5,566
37
5,603
5,603
5,623

69
311
380
380
-21
119
-1
-37
0
161
6
-1
-7
9
107
17
-37
87
292
272
282
7
-18
-0
-17
317
37
355
355
355

825,000 units 873,000 units

48,000 units

6,360 yen

6,419 yen

Breakdown of Increase/ Decrease in Income (JPY mn)
Increase Decrease
External growth (properties acquired in 27th and 26th periods)
Increase in NOI of properties acquired in 27th period
Increase in NOI of properties acquired in 26th period

Increase in NOI（Revenues） Increase in rent revenue
Increase in cancellation penalty, etc.
Increase in income equivalent to expenses for restoration to original condition

17

Decrease in property and other taxes

Decrease in others non-operating expenses

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

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

Decrease in interest expenses

3

Dilution due to public offering

Recorded implemented works
corresponding to the above
income equivalent to
expenses for restoration tooriginal condition

162
8
7
19
+30 yen25
7
18
0

Increase in other non-operating expenses

Extraordinary income
Increase in subsidy income

Increase due to agreed
cancellation at suchproperties as Gotanda First
Bldg. and Kanematsu Bldg.
Annex

37
23

Increase in repairs and maintenance cost

Additional acquisition of
Shinjuku Square Tower
contributed (additional
revenue for approximately 3months)+327 yen

270
242
25
64
250

Decrease in others（Expenses） Decrease in utilities expense (seasonal factor, etc.)+27 yen

22
38
1

Increase in depreciation related to the above properties

Internal growth (continuously owned properties)

Conversion
to DPU3737+45 yenRecorded subsidies forproperties eligible for thegovernment’s EnergyEfficient Renovation
Promotion Grant Program-373 yen

Assumption for the 27th Fiscal Period Forecast (Jan. 1, 2015-Jun. 30, 2015)• Investment properties owned: Total 62 properties （end of 26th period (Dec. 2014))• Average occupancy rate:
97.5％ （confirmed contracts）• LTV (based on total assets) :46.1％ （27th period (Jun. 2015))

59 yen（Note）The forecast for the current (27th) fiscal period was made upon the announcement of financial results of the previous fiscal period.

11

2. Operating Resultsand Forecasts ofFinancial Results

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

Item

Rental revenue
Other rental revenue
Rental revenue - real estate (a)Operating revenue
Property and other taxes
Other expense related businessOutsourcing expense
Utilities expense
Casualty insurance

27th Period

28th Period(Result)(Forecast)

13,1591,092
14,251
14,251
2,026
2,964
527
898
27

13,212830
14,043
14,043
2,023
2,651
536
967
28

Changes

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

53
-261
-208
-208
-3
-312
9
68
1

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

Increase in NOI of properties acquired in 28th and 27th period

Increase in NOI（Revenues）
Decrease in rent revenue
Increase in incidental income (seasonal factor, etc.)

Repairs and maintenance

566

169

-397

Property management fee

238
576
129
1,854
6,845
503
205
7,554
6,697
7,406
9,260
50
1,073
108
1,181
5,566
37
5,603
5,603
5,623

224
585
139
1,875
6,550
501
225
7,277
6,766
7,492
9,368
4
990
99
1,089
5,681
3
5,684
5,684
5,703

-14
8
10
21
-295
-1
19
-277
68
86
107
-45
-82
-9
-91
114
-33
80
80
80

Decrease in others

Management association accounts

OthersDepreciation
Expenses related rent business (b)Asset management fees
Other operating expenses
Operating expenses
Operating income
Profits (a-b)
Net operating income (NOI)
Non-operating income
Interest expenses
Other non-operating expenses

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income
Unappropriated retained earnings

Total number of units outstanding at end of period

Distributions per units (DPU)

873,000 units 873,000 units

6,419 yen

6,510 yen

0 units

6

81

Decrease in property management fee

250
4
68

23
14
17

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

Decrease in interest expenses
Decrease in other non-operating expenses

Extraordinary loss
Decrease in subsidy income+52 yen45

Due to repayment ofborrowings by using
proceeds from public
offering, etc.

45

（Revenues） Decrease in settlement of management association accounts（Expenses）

Due to lack of restoration
works-455to original conditions
and review of valueenhancement works, etc.

397
14Increase in others non-operating expenses

Financial costs and other non-operating income and expenses

Due to lack of what wasrecorded in the previous
fiscal period

88（Expenses）
Increase in utilities expenses (seasonal factor, etc.)

Decrease in repairs and maintenance cost

Assumes a decrease inassociation with a drop in theoccupancy rate

22

restoration to original condition

Additional acquisition of
Shinjuku Square Tower
contributed (additional
revenue for 6 months)+1 yen1
34

Decrease in cancellation penalty, etc.
Increase in income equivalent to expenses for+76 yen

67
73

Increase in depreciation related to the above properties

Internal growth (continuously owned properties)

Conversion
to DPU82
933
33-38 yenLack of subsidies under thegovernment’s EnergyEfficient Renovation
Promotion Grant Program

Assumptions for the 28th Fiscal Period Forecast (Jul. 1, 2015-Dec. 30, 2015)• Investment properties owned: Total 62 properties （end of 27th period (Jun. 2015))• Average occupancy rate:
97.2％ （confirmed contracts）• LTV (based on total assets) : 42.1％ （27th period (Jun. 2015))+91 yen12

2. Operating Resultsand Forecasts ofFinancial Results

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

Item

Rental revenue
Other rental revenue
Rental revenue - real estate (a)Operating revenue
Property and other taxes
Other expense related businessOutsourcing expense
Utilities expense
Casualty insurance
Repairs and maintenance
Property management fee
Management association accounts

OthersDepreciation
Expenses related rent business (b)Asset management fees
Other operating expenses
Operating expenses
Operating income
Profits (a-b)
Net operating income (NOI)
Non-operating income
Interest expenses
Other non-operating expenses

Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
Net income
Unappropriated retained earnings

Total number of units outstanding at end of period

Distributions per units (DPU)

28th Period

29th Period(Forecast)(Forecast)

13,212830
14,043
14,043
2,023
2,651
536
967
28
169
224
585
139
1,875
6,550
501
225
7,277
6,766
7,492
9,368
4
990
99
1,089
5,681
3
5,684
5,684
5,703

Changes

13,231822
14,053
14,053
2,061
2,666
528
898
28
258
226
579
146
1,881
6,610
503
213
7,327
6,725
7,442
9,324
35
952
88
1,040
5,719
－
5,719
5,719
5,739

18
-8
9
9
38
15
-7
-68
-0
89
1
-5
6
6
60
1
-11
50
-40
-50
-44
30
-37
-11
-49
38
-3
34
34
35

873,000 units 873,000 units

0 units

6,510 yen

6,550 yen

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

Conversion
to DPU－ yen

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

Increase in NOI of properties acquired in 29th and 28th period
Increase in depreciation related to the above properties

40
44

Internal growth (continuously owned properties)

Decrease in NOI（Revenues） Increase in rent revenue

18
77

Decrease in incidental income (seasonal factor, etc.)
Increase in cancellation penalty, etc.

Increase in others（Expenses） Decrease in utilities expenses (seasonal factor, etc)

66
1
68

Increase in repairs and maintenance cost

Increase in brokerage fee
Decrease in others non-operating expenses

Increase in valueenhancement works, etc. isassumed17

Increase in depreciation

6

Decrease in asset management fees and administration service fees

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

Decrease in interest expenses
Decrease in borrowing expense

Assumes an increase due topartial filling of vacancy forproperties subject to leasing
strengthening, etc.
Assumes an increase due tocancellation of long-term
contracts for office properties

38
89
11

Increase in property and other taxes（Expenses）-46 yen9+90 yen

79
30
37
10

Extraordinary income
Decrease in subsidy income

33-4 yenThe item is recorded only infiscal periods ending Juneeach year

Lack of subsidies under thegovernment’s EnergyEfficient Renovation
Promotion Grant Program

Assumptions for the 29th Fiscal Period Forecast (Jan. 1, 2016-Jun. 30, 2016)• Investment properties owned: Total 62 properties （end of 27th period (Jun. 2015))• Average occupancy rate:

96.7％ (certain assumed contracts included on top of theassumptions for the 28th period)• LTV (based on total assets) :42.1％ （27th period (Jun. 2015))

40 yen13

2. Operating Resultsand Forecasts ofFinancial Results

Balance Sheet for the 27th Fiscal Period Ended June 2015
（JPY mn）

Item

26th Period

27th Period(As of Dec. 31, 2014)(As of Jun. 2014)

AmountCurrent assets%

AmountChange%Amount%23,786

5.7%

25,569

6.1%

1,783

7.5%

Cash and deposits

12,117

2.9%

12,786

3.1%

668

5.5%

Cash and deposits in trust

11,2272.7%

12,278

2.9%

1,051

9.4%

Other current assets

Cash and deposits status（JPY mn）

ChangeEnd of 26th Period

End of 27th Period

Cash and deposits (including in trust)

23,34425,064+1,720Tenant leasehold and security deposits (Note)

10,50010,955

+455

442

0.1%

505

0.1%

62

14.2%

Noncurrent assets

390,070

94.2%

392,957

93.8%

2,886

0.7%

Tangible assets

384,92893.0%

387,816

92.6%

2,887

0.8%

(Note) Amount equivalent to leasehold deposits released from tenants(9,500 million yen at end of 26th period and 8,838 million yen at
end of 27th period) are excluded.

Intangible assets

4,797

1.2%

4,796

1.1%

-0

-0.0%

Noncurrent assets（JPY mn）

Investments and other assets

345

0.1%

344

0.1%

-0

-0.2%

Property acquisition (including incidental+4,076

Lease and guarantee deposits

96

0.0%

145

0.0%

49

51.2%

Capital expenditure+660

Others

248

0.1%

198

0.0%

-50

-20.1%

Depreciation-1,854

233

0.1%

251

0.1%

18

7.8%

Other

+3

233

0.1%

207

0.0%

-26

-11.5%

Total+2,886

Deferred assets
Investment corporation bond issuance costs

Investment unit issuance expenses

Total assets
Current liabilities

－

－

44

0.0%

44

－

414,091

100.0%

418,778

100.0%

4,687

1.1%

expenses)

Interest-bearing debt status（JPY mn）

Increase

Decrease

Change38,4209.3%

30,765

7.3%-7,654-19.9%

Short-term loans payable

15,00014,000

－

－

1,000

0.2%

1,000

－

Long-term loans payable

7,000

9,566

-2,566

Current portion of long-term loan payable

19,732

4.8%

23,332

5.6%

3,600

18.2%

－

13,000-13,000

Current portion of investment corporation bonds

13,0003.1%－－-13,000-100.0%22,00036,566-14,566

5,688

1.4%

6,433

1.5%

745

13.1%

178,292

43.1%

171,91941.1%-6,372-3.6%

Long-term loans payable

116,79228.2%

110,626

26.4%-6,166-5.3%

Investment corporation bonds

41,50010.0%

41,5009.9%－－

Short-term loans payable

Other current liabilities
Noncurrent liabilities

Investment corporation bonds

Total

Net assets（JPY mn）

Unitholders' capital+18,351(procurement through issuance of new
investment units)

20,0004.8%

19,793

4.7%

-206

-1.0%

Dividends from surplus-5,239Total liabilities

216,71352.3%

202,68548.4%-14,027-6.5%

Net income+5,603Unitholders' capital

192,04446.4%

210,395

50.2%

18,351

9.6%

Total

+18,714

5,333

1.3%

5,697

1.4%

363

6.8%

Tenant leasehold and security deposits

Surplus
Total net assets

197,37847.7%

216,092

51.6%

18,714

9.5%

Total liabilities and net assets

414,091

100.0%

418,778

100.0%

4,687

1.1%

+1,00014

3. Management Status andStrategies

15

Occupancy Status

3-1. Internal Growth

Although move-outs increased through agreed cancellations, invitation of new tenants progressedsmoothly, raising the average occupancy rate to 97.5%
 Changes in Move-In and Move-Out Spaces(㎡)

20,000 State of Major Leasings•Move-ins (left axis)

Move-outs (left axis)

Rate of move-ins (right axis)

Rate of move-outs (right axis)

2.7

10,000(Forecast)

2.2

2.6
1.8

2.6

+4,904

9,994

11,598

8,224

11,764

6,860

0

•
•

2

15,898
10,417

(%)

4

3.8

•

Move-out spaces increased from beginning-of-period assumption as tenants’move-out dates changed from the end of June to May as a result of agreed
cancellations at Gotanda First Bldg., Kanematsu Bldg. and Kanematsu Bldg.
Annex
Invitation of new tenants progressed with an increase of over 70% from the
beginning-of-period assumption
Of the relocation demand coming from a wide variety of business types,
demand from IT-related companies is particularly strong
By rent zone, properties with rents in the latter half of the 10,000 yen level
through the middle of 20,000 yen level per tsubo tend to receive manyinquiries and private views
26th period
Occupancy rate

0-7,856-10,000-1.9-4,933-5,512-6,608-11,603-12,051
-1.2

-1.6
-2.7

-20,000

22nd

23rd

24th

25th

-2.6

-2.8

26th

27th

 Changes in Occupancy Rates of Properties
Portfolio
99.8

Office properties
99.8

99.7

Move-outs-2(Note) Rate of move-ins and move-outs = Move-in and move-out spaces of each fiscal period / total leasable
space at the end of the previous fiscal period(%)

100.0%-12,890
JPR Sendagaya Bldg.

－7,957

MS Shibaura Bldg.

99.6

99.8

72.9%

99.8
96.9

97.0

97.2

97.5

±0%pt

97.5

95.6
96

94.4
95.4

94

880

95.9

95.6%

Olinas Tower

1,829㎡

0㎡

27th period
Occupancy rate

86.4%
Move-ins

Changes＋13.5%pt
Change of space

0㎡

27th period
Occupancy rate

100.0%
Move-ins

1,046㎡

Changes+4.4%pt
Change of space+1,046㎡• Tenants related to IT and expressway
operation services relocated to the property
for expanding their headquarters or
expanding their office floors in the property

91.4

22nd

26th period
Occupancy rate

96.3

Move-outs

93.4

92
90

95.7

96.2

0%pt
Change of space

0㎡
1,960㎡＋1,960㎡• Achieved full occupancy with new move-ins
in July 2015
• Tenants engaged in electronic equipment
sales or electrical utility services, etc.
relocated to the property for concentrating
or expanding their office floors, etc.

(Forecast)

100
98

26th period
Occupancy rate

Move-outs

Retail properties
99.6

100.0%
Move-ins

Changes• Invited succeeding tenants with almost no
down time after cancellation for 3 floors• IT-related tenants, etc. newly relocated toor expanded their leased floors in theproperty-4
Move-out spaces
increased due to changes
in tenants’ move-out
dates at Gotanda First
Bldg. and Kanematsu
Bldg. Annex, etc.

-1,829㎡

27th period
Occupancy rate

23rd

24th

25th

26th

27th

16

3-1. Internal Growth

Status of Rent

Average unit rent continued to rise with upward revision of rents proceeding further than anticipated Changes in Average Monthly Rent per Unit

 Status of Rent Revisions

Portfolio(thousand yen/ tsubo)

Changes in Revised Amount of Monthly Rent, Etc.

14,500(million yen/month)(+0.4%)

14,400

Increase

Decrease

20(+0.3%)

10(+0.2%)

14,300(-1.1%)(-0.4%)（ Figures in parentheses indicate
rate of change from the end of
previous fiscal period）

0

0
14,200
22nd

23rd

24th

25th

26th

27th

(Note) Average unit rent = Sum total of monthly rent (including common charges) / total leased space
Average unit rent is calculated based on the amounts indicated in the lease agreements with tenants (includingcommon chages), etc. For some properties, common charges, etc. not recorded as JPR’s revenue but received
by the master lessees are included in the calculation.

 Changes in Loss of Rents(million yen)

350
300

Loss of rents (left axis)
Disparity between occupancy rates based on concluded contracts and based on generated rents (right axis)

-1.4
-2.1

250

-2.3

-2.4

-1.8

-2.7

(%pt)

0
-1
-2

200

-3

150

-4

100

-5

50

-6

0

-7
22nd

23rd

24th

25th

26th

27th

(Note) “Loss of rents” indicates the amount of rents, etc. which correspond to the leased spaces subject to rent exemption
due to granting of rent-free periods and do not contribute to the revenue for respective fiscal periods.
Disparity between occupancy rates based on concluded contracts and based on generated rents = occupancy rate
based on generated rents – occupancy rate based on concluded contracts (period-average of the occupancy rates
at the end of each month for both)

-10

-20

22nd

23rd

24th

25th

26th

27th

(Note) “Revised amount of monthly rent, etc.” indicated the sum total of the increase and decrease inmonthly rent, etc. revised for each fiscal period. In the amount of revised rent, etc. for the 27th
period, the revised land rent of The Otemachi Tower (Land with Leasehold Interest) is recorded
only for the CPI-linked portion excluding revisions to property taxes, etc.

Status of Upward Revision (27th Fiscal Period)• The number of revision cases (36 cases) and the revision amount of monthly
rent (15 million yen) both increased period-on-period and became the largest in
recent years• Upward revisions were made not only for office properties in Greater Tokyo andOther Cities as well as Central Tokyo but also for retail properties• Large-scale upward revisions were made with office tenants for up to over
1,500 tsubos at a time and with retail tenants to whom the entire buildings areleased.
• For The Otemachi Tower (Land with Leasehold Interest), land rent was revised
in link with consumer price index (CPI) (meaning an increase in NOI of theproperty) for 2015, which serves as the base year

17Outlook of Rent Revenue

3-1. Internal Growth

While tenant relocations will intensively impact performance in the 28th period, JPR will endeavor toraise new rents through tenant replacement
 Forecast of Occupancy Rate and Rental Revenue

Prospects of Properties Subject toLeasing Strengthening

Change in Occupancy Rate
Occupancy Rate

27th Period

28th Period

29th Period(result)(forecast)(forecast)

97.5

Concluded contracts

97.2

96.7

Target97.5

Generated rents

95.7

95.1

95.8

96.5

Changes

-1.8

-2.1

-0.9

-1.0

Change in Rental Revenue andBreakdown of Factors of Change(million yen)

Rental revenue and cancellation penalty

+88

+283
-397

+65

Of the increase
due to new
move-ins,
approx. 80% isbased oncontracts
confirmed as oftoday andapprox. 20% isbased onassumption

13,252

-314
+310

+54
+76

Increase in revision rents

Increase and decrease in others (including in increase and decrease cancellation penalty)

Decrease inrevenue due tocancellation at
Gotanda First Bldg.
and Kanematsu
Bldg. Annex, etc.

13,500

Increase in move-ins

13,217-86

Decrease in move-outs

4,234㎡

Assumedoccupied space
1,770㎡

28th occupancy

29th occupancy

6.5%

46.8%

Space foradvertised lease• The tenant to whom the entire
building was leased moved out inMay 2015• Of the 6 floors (standard floors) for
advertised lease, 2 floors will beleased starting in Sep. 2015, and 1
floor will be leased starting in Jan
2016.

2,291㎡

Assumedoccupied space
2,291㎡

28th occupancy

29th occupancy

0.0%

21.6%

Space foradvertised lease• The tenant to whom the entire
building was leased moved out inMay 2015• With inquiries and applications formove-ins received from multiple
tenants, lease of the entire building
to a tenant is assumed to start inMarch 2016
Effects of lease-up of vacancies at Gotanda First Bldg., Kanematsu
Bldg. and Kanematsu Bldg. Annex
Prospect of 100% (occupancy rate)
29th (forecast)+316

13,302+64+75

13,05913,000Kanematsu Bldg.
Annex

Increase in newly acquired properties

+22

-317

Gotanda First
Bldg.

(Note 1) Rent revenue includes land rent, parking lot revenues and advertisement charges as well as rents and common charges. The occupancy rate and rent revenue for the 27th fiscal
period ending June 2015 are calculated based on contracts confirmed at the moment (including new contracts already concluded and notification of cancellation received). The
occupancy rate and rent revenue for the 28th fiscal period ending December 2015 are calculated based on the same preconditions for the 27th fiscal period as well as on someassumed expectations.
(Note 2) The internal growth target, which is nothing but JPR’s policy target for its management, is not related to the operating forecasts, etc. that JPR announces, and does not guaranteethat the figures are achieved.

92 million yen+183 million yen (change in 29th)(Note ) “Prospect of 100% (occupancy rate) is a trial calculation by JPR of rents,
etc. increase in revenue (compared to the projected contribution in the
29th period) assuming 100% occupancy rates.

(Reference) Tenant changes in 30th period ending December 2016
Benetton Shinsaibashi
Bldg.

Effective date ofcancellation（forecast)

Cancelled space

July 29, 2016

5,303㎡• With cancellation of the master leaseagreement with the tenant to whom
the entire building of the property isleased, JPR plans to succeed thesublease agreements with end
tenants

18

Outlook of Rent Revenue

3-1. Internal Growth

Endeavor to promote leasing with a focus on raising rents, while flexibly reviewing target rents inaccordance with changes in the market
 Distribution Status of Rent Levels of the Portfolio Properties

 Initiatives for Raising Rent

As rent zones are distributed for JPR’s office properties in Tokyo, JPR
prepares its rent policy in accordance with changes in the market
conditions, such as rent zones and areas for which tenant demand isstrong.
Ratio of Owned Office Properties inTokyo by Average Rent Zone

Strategic use of rent1.
free periods

Grant rent-free periods with the intention of raising
rents in the later part of contract periods or upon
contract renewal, although rent revenue will
decrease at the initial part of contract periods

Proactively conduct
2. value enhancement
measures

Intend to improve the conclusion rate of lease
contracts and raise new contract rent

Continuously enhance3.
CS (tenant satisfaction)

Continuous endeavors to enhance CS areproactively utilized for preventing tenants’cancellation in advance and negotiating upwardrevision of rents(acquisition price base)Less than

25 thousand yen or more

15 thousand yen
15%

18%

20~25 thousand yen
39% (Note) “Ratio of owned office properties in Tokyo by
average rent zone” refers to the ratio of acquisition
price by average unit rent zone (including common
charges; with vacancies assumed to be filled at thebase rent JPR designates) to the total acquisition
price of office properties in Tokyo owned by JPR.
Furthermore, The Otemachi Tower (Land with
Leasehold Interest) is excluded as it is a land withleasehold interest.

28%

15~20 thousand yen Preparation of Rent Policy
By preparing the “base rent” and “target rent” in its management policy foreach fiscal period, JPR endeavors to invite new tenants and negotiate
upward revision of rents.
Number of Cases with Changes inChanges in Target Rent
Target Rent
(cases)50

Increase

Unchanged

Decrease

33(+1.5%)

16.5(+2.9%)

28

23 24

23 24

16.0

18

20

13
15.5

10

28th

(Note) For the target rent set for each property (excluding
some retail properties), average unit price weighted
by leasable space is indicated.

82.4

79.1

0
75
2015

27th

82.3

2014

26th

80

81.8

2013

25th

81.0

83.7

2012

28th

83.2

2011

27th

84.6

85

2010

26th

（Figures in parentheses indicate period-on-periodchange rate）

86.9 87.1
85.9

2009

25th

0
15.0

90

2008

1

Surveyed target: All tenants ofproperties owned by JPR (officetenants, etc.)
Survey period: May-June 2015
Survey method: Property
management companies directly
delivering and collecting
questionnaires to and from persons
in charge of office management at
each tenant
Survey building: 39 buildings with
434 tenants
Questionnaire items: 7 areas intotal, including management andadministration, responses totenants, crime prevention andsafety, emergency responses andenvironmental preservation

Overall satisfaction (average)(points)

2007

0【Overview of 2015 Tenant
Satisfaction Survey】

2006

0

1

In the results of the 2015 CS survey, the overall satisfaction (average value) marked
87.1 points (converted to 100 points as full score), the highest ever. The results
show that tenants who replied “satisfied” or “somewhat satisfied,” the higher two of
the four choices, occupied 96.2% of all respondents.

2005

0

17.0
(+1.5%)

40
30(yen/tsubo)

Changes in CS Survey Results

193-2. External
GrowthContinue Policy of Vigorously Selective Investments

Implement external growth strategy that focuses on quality by taking advantage of the acquisition
capacity through debt financing
 Status of Property Acquisition Pipelines and Co-Owned
Properties, Etc.(As of June 30, 2015)

 Acquisition Environment• Transaction prices remainson an upward trend through 2015
• Cap rates further decreases even for properties that are somewhat
inferior in terms of location, building age and specifications, etc.
• Many of the competitors are J-REITs, and there is an increasing numberof cases with market price that factored in a significant degree of rent
increase in the future

Breakdown of Property
Acquisition Pipeline

Investment Ratio of Co-owned
Properties, Etc.

(based on accumulated acquisition prices)(based on acquisition prices)

Acquired other thanfrom sponsors

133.3 billion yen 30%• Focus on reinforcing property pipelines that allow JPR to conduct
preferential negotiations and negotiated deals for co-owned properties,
etc.
Target1.

2.

3.

Office properties in Tokyo
that allow expectations
for growth

Pipeline• Continuously obtain property informationfrom the sponsors• Reinforce relationship for additional
acquisitions based on preferential
negotiation rights for co-ownership, etc.

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

Properties in regional
cities featuring highstability of earnings• Investigate a wide range of selections,
ranging from large-scale properties for
closed-bid deals to medium-sized properties
that may enable negotiated deals

30properties
233.9
billion yen
57%

50% 221.4 billion yen

 Acquisition Policy• Select high-quality properties and continue investigating investments
although the acquisition environment becomes increasingly severe

Co-owned
properties, etc.

Acquired from thesponsors

43%
Full ownership

Acquired based on
information
20%
provided bysponsors

32 properties
175.6 billion yen

90.1 billion yen

 Investigation Status of Investment Projects

Change in Number of Cases with Property Information Obtained andInvestigated by TRI（cases）

22nd Period

23rd Period

24th Period

25th Period

26th Period

27th Period

116

131

108

119

84

84

21

47

51

36

35

40

Number of caseswith information
obtained
Number of caseswith information
investigatedState of 27th (Fiscal Period)
Ratios of number of cases with information obtained (outerring) and number of cases with information investigated(inner ring)(Reference) Major reasons for suspending
investigation

Others16%

Retailproperties

32%

33%
Office properties
in other cities

22%

45%

Office properties
in Tokyo

47%

Specs
9%
Price
18%

Location
57%

21%(Note) Others: Ability to replace tenants,
use and abidance with laws.

20

3-2. External
GrowthAcquired Additional Ownership of Blue-chip Property inCentral Tokyo
Shinjuku Square Tower（Shinjuku Ward, Tokyo)
 Acquisition Highlights

Acquisition
price

4,000 million yen

Appraisalvalue

4,580 million yen

NOI yield
NOI yield after
depreciation

Cap rate[Assumed on
acquisition][Based on current
contracts][Assumed on
acquisition][Based on current
contracts]

4.4%

3.4%

• JPR acquired parts of the property in 2004 and 2008
• Ownership ratio surpassed majority at 62.7% after
additionally acquiring interest corresponding to 23.9%
by utilizing the preferential negotiation rights amongco-owners

 Property Characteristics• Ultra-skyscraper with 30 floors above ground andapproximately 300 tsubos for a single floor• The western part of the Nishi-Shinjuku area where theproperty is located has an increasingly progressing
concentration of tenants through large-scale
redevelopment projects in recent years, resulting inenhanced potential of the area
• Evaluated as a property that can secure stable tenant
demand with rents, etc. set at a highly competitive
level in the area, while having specifications as a ultraskyscraper

4.2%

3.0%

[as of March 1, 2015]

4.3％(Note 1) Assumed NOI yield upon acquisition and Cap rate after depreciation : Calculated based on the assumed income and expenditures for the
10 years that take into account such factors as tenant replacements and rental fluctuations occurring in the ten years after the acquisitionof the property; the average occupancy rate for the period is assumed to be 96% (for office sections).
(Note 2) NOI yield and after-depreciation yield based on current contract are calculated based on the annual assumed revenues and expenditureson the premise of the contracts, etc. confirmed as of August 20, 2015.
(Note 3) Appraisal yield indicates the capitalization rate based on direct capitalization method.
8～9 minute walk from Nishishinjuku station on the Tokyo Metro
Marunouchi Line
7～8 minute walk from Nishishinjuku-5chome station on the Toei Oedo
Line

Location

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

Asset

OfficeFloors

B4/30F

Completion

October 1994

Total floor space

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

6,796.83㎡
Total leasable space(equivalent to ownership interest additionallyacquired in 27th period)

Occupancy

99.9% (as of the date of this document)

Acquisition date

March 25, 201521

3-3. Financial
Operations andOthersAppraisal Values

Unrealized losses were cleared due to an increase in the appraisal value, achieving unrealized gainsof 9.3 billion yen Number of Properties with Changes inAppraisal Value and Cap Rate Period-end Appraisals
End of 26th Period
Dec. 31, 2014

End of 28th Period
Jun. 30, 2015

62

62

-

Appraisal value

387.6 billion yen

401.9 billion yen+14.2 billion yen

Book value

389.7 billion yen

392.6 billion yen+2.8 billion yen-2.0 billion yen

9.3 billion yen+11.3 billion yen

No. ofproperties

Unrealized gains
or losses
Ratio ofunrealized gains
or losses

ChangeAppraisal Value(properties)

Increase+2.9%pt

Decrease

50(properties)

51

50

50

43

40

40

30

30

20
7

25th

Unchanged

Decrease

56
50
44

18

20

12

9

7
2

0

Increase

60

10

2.4%

Unchanged

60

12

-0.5%

Cap Rate

26th

5

10
0

27th

6
0
25th

0
26th

0
27th

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

 Changes in Unrealized Gains or Losses(JPY 100 million)

400

(%pt)

(%)

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

+4

5.2

+2.9

300
200

+2

+1.0
+0.4

+0.3
93

0
-100

+1

Central Tokyo Office

5.0-0.5%pt(compared with Jun. 2010)

4.8

0
-217

-142

-100

-20

-1
-2

-300

-3

22nd

4.6

-208

-200

-400

Portfolio

+3

+2.1

+1.8

100

 Change in Cap Rate

Unrealized gains or losses (left axis)

23rd

24th

25th

26th

27th

-4

4.4

4.2
0

15th

16th

17th

18th

19th

20th

21st

22nd

23rd

24th

25th

26th

27th

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

22

3-3. Financial
Operations andOthersConservative Financial Operations Continued

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

 Change in LTV
End of 26th
PeriodEnd of 27th
Period

46.1%

42.1%

LTV

(%)

Change-4.0%pt

50

49.3

47.9

30 billion

Acquisition capacity
Ratio of long-term,
fixed interest rate debts

98.2%

Average maturity ofinterest-bearing debts

3.9 years

Average interest rate ofinterest-bearing debts

1.27%

65 billion

99.4%
4.0 years+35 billion

46.8

44.7

42.3
40.7

+1.2%pt+0.1 years

38.6-0.06％pt(Note) “Acquisition capacity” at the end of the 26th fiscal period represents an estimate figure
for the debt procurement capacity until LTV (based on fair value; 46.4% at the end of
the 26th period) reaches 50%, which is the target upper limit of JPR in controlling LTV.
As for the acquisition capacity at the end of the 27th fiscal period, LTV that serves as thecriteria is changed from the fair value basis to the total assets basis, since unrealized
gains accrued at the end of the fiscal period. Accordingly, the figure is an estimate for the
debt procurement capacity until LTV (based on total assets) reaches 50%.

 Credit Rating Status
Credit Rating Agency

R&I（Rating and Investment Information, Inc.)（as of Aug. 20, 2015）

Corporate Credit Rating (Outlook)

30

S&P

45.0

44.9 45.7

45.2

46.1
46.2

42.1

40.3
35.7
34.3

33.5
1st

2nd

3rd

4th

5th

6th

7th

8th

9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th

 Diversification of Repayment Dates of Interest-Bearing Debts(JPY 100 million)

Corporate bonds

Long-term borrowings

Short-term borrowings（as of Aug. 20, 2015）

250
200

AA-

（Stable）

50

150
100

(Standard & Poor’s Ratings Japan K.K.)

41.8 45.6

46.3

45.2

42.1
35.6
36.5

1.21%

45.4

45.4

Long-term ： A （Stable）
Short-term ： A-1

131
50

28th 29th

50

195

40

20

130

101
10

0

70

51
30th

83

81

91

31st 32nd 33rd

34th

35th 36th

80

20

100
60
37th 38th

48

20

39th 40th

25

50

41st 42nd 43rd

50
20
44th 45th

30
20

85

50

46th 47th

48th 49th

50th

23

3-3. Financial
Operations andOthersInterest-Bearing Debt Costs Reduced and Shift to LongTerm, Fixed Interest Rate Debts Promoted

Conducted refinance with borrowings that have an average maturity of 9.7 years on average,
centering on those maturing in 10 years, and interest rates of 1.04% on average Results of New Financing and Repayment (27th Period)
Summary of New Financing and Repayment
New Financing

7.0 JPY bn.

Average agreed
period9.7 years

Average debt
cost

(%)

1.04%

22.4 JPY bn.

+4.6 year

Average agreed
period5.1 years-0.37%pt

Average debt
cost

1.41%

Lender1,000

10 1.04%1,000

7 1.67%

Mar.11 Mizuho Bank, Ltd.

2,000

9 1.01%2,000

5 1.68%Mar.24 Mizuho Bank, Ltd.

2,000

10 1.06%－－－

Development Bankof Japan Inc.

2,000

10 1.06%－－－

Repaid 18.4 billion yen by using proceeds frompublic offering, etc.
（with the difference of 1.0 billion yen from the repayment
amount refinanced into short-term debt)

Total and average

7,000

9.7 1.04%(Note 1) Short-term debt is excluded.
(Note 2) New loans as of March 24, 2015 were used for property acquisition.

(years)4,000

5 1.68%2,000

7 1.73%7,000

5 1.27%2,000

7 2.26%3,400

3.5 0.62%

1,000

3 0.84%

22,4005.1 1.41%

0.96

0.98

1.07
0.91

12

1.04
0.87

10

0.8

8

0.6

6
8.7 years

0.4

0.0
0

Amount Term Interest(JPY mn)(years)rate

Meiji Yasuda Life
Feb.5
Insurance Company

Mar.241.0

0.2

Details of New Financing and Repayment
Date

Average interest-bearing debt costs (left axis)

14

1.2

Total financing
amountAmount Term Interest(JPY mn)(years)rate

Average maturity (right axis)

1.4

Repayment and Redemption

Total financing
amount Changes in Results of New Financing

Amount

8.7 years

9.7 years

5.9 years

6.3 years

22nd

23rd

24th

25th

26th

27th

22.9 bn.

18.8 bn.

21.0 bn.

16.5 bn.

13.0 bn.

7.0 bn.

4

6.3 years

20(Note) Short-term debt is excluded.

 Change in Average Maturity and Average Debts Cost(%)

Average maturity (right axis)

Average debt costs (left axis)(years)

2.0

8
1.62

1.57

1.53

1.5

1.44
1.27

1.21

1.0

0.5

0.0

6

4

3.3 years

3.4 years

3.5 years

3.8 years

3.9 years

4.0 years

22nd

23rd

24th

25th

26th

27th

2

0

24

3-3. Financial
Operations andOthersDiversification of Lenders and Utilization of Investment
Corporation Bonds

Established a lender formation with 24 financial institutions, making it the basic policy to do businesswith them in negotiated deals
Issued investment corporation bonds in a dynamic and flexible manner since listing, aiming todiversify lenders and reduce financing costs
 Status of Borrowings
Lender Status of Corporate Bonds

Balance as ofJun. 30, 2015
(JPY mn)Mizuho Bank, Ltd.

26,000

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

18,000Name

Lenders of Interest-bearing Debt

Balance as ofJun. 30, 2015
(JPY mn)

7th Series of Corporate Bonds

4,500

13th Series of Corporate Bonds

7,000

12,90014th Series of Corporate Bonds

2,000

Shinsei Bank, Limited

9,000

Corporate Bonds

15th Series of Corporate Bonds

5,000

41.5 billion yen 24%

Mega Bank

16th Series of Corporate Bonds

2,000

56.9 billion yen

17th Series of Corporate Bonds

5,000

18th Series of Corporate Bonds

2,000

19th Series of Corporate Bonds

5,000

20th Series of Corporate Bonds

2,000

21th Series of Corporate Bonds

4,000

Aozora Bank, Ltd.

7,900

Development Bank of Japan Inc.

7,620

Mizuho Trust & Banking Co., Ltd.

7,000

Mitsubishi UFJ Trust and Banking
Corporation

6,000

The Bank of Fukuoka, Ltd.
Meiji Yasuda Life Insurance
Company
Sompo Japan Nipponkoa
Insurance Inc.

5,000
4,538
4,000

ORIX Bank Corporation

3,000

Shinkin Central Bank

3,000

The Shinkumi Federation Bank

3,000

Taiyo Life Insurance Company

3,000

The Chugoku Bank, Ltd.

3,000

The Nishi-Nippon City Bank, Ltd.

3,000

The Hachijuni Bank, Ltd.

2,000

Resona Bank, Limited

2,000

The Iyo Bank, Ltd.

1,000

Daido Life Insurance Company

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

(as of Jun. 30, 2015)

Central Bank
4.0 billion yen

32%

Interestbearing
debt status

2%

Regional Bank 8%

176.4

14.0 billion yen

billion yen

8%9%

Trust Bank
14.0 billion yen

22th Series of Corporate Bonds

Balance of corporate bonds

17%
Large Bank

Insurance
Company

16.5 billion yen

29.5 billion yen

3,000
41,500 Status of Commitment Line
Contract
LenderBalance as ofJun. 30, 2015
(JPY mn)Mizuho Bank, Ltd.

4,000
4,000

1,000

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

The Norinchukin Bank

1,000

Aozora Bank, Ltd.

4,000

Sumitomo Mitsui Trust Bank
（Note 2）

1,000

Mizuho Trust & Banking Co.,

4,000

(Note 1) All borrowings are unsecured and unguaranteed.

Mitsubishi UFJ Trust and Banking
Corporation

4,000(Note 2) This is a short-term borrowing (floating rates of interest).

Resona Bank, Limited

4,000

Total borrowings

134,958(Note 3) All borrowings are long-term, fixed interest rate debt except for (Note 2).

Total commitment line

4,000

28,00025

3-4. Future GrowthTargetStable Growth of DPU over the Long Term

Aim to achieve continuous growth of DPU mainly through steady internal growth with an increase inrents, while taking advantage of the property acquisition capacity through debt financing that has
been expanded as a result of equity financing through public offering
Dec. 2010~ Dec. 2011

Jun. 2012~ Jun. 2014

Phase torecover to JPY
6,000 innormaloperation

Phase to maintain
JPY6,000 innormal operation(Yen/unit)

7,000

DPU

Dec. 2014~ Dec. 2015(forecast)
JPY6,500
as mediumterm target

Average DPU for each phaseJun. 2016 (forecast) ～Phase to achieve long-term stable growth

Future Initiatives
External Growth
Vigorously selective investment utilizing the acquisition
capacity

6,500

Select properties with a focus on quality and implement strategic investment activities① Strengthen sponsors’ pipelines② Utilize preferred negotiation rights for co-owned properties, etc.
③ Select properties for closed-bit deals and negotiated deals

6,000Internal Growth
Continue to raise rent revenue

0
5,500

Initiatives Taken to Date
[External Growth]

Implemented vigorously selective investments primarily in
office properties in Tokyo, which perform better than the
average NOI yield of the portfolio[Internal Growth]

Rent revenue from existing properties reversed to an upward
trend due to implementation of leasing with a focus on rent
levels[Financial Operation] Reduced debt costs by refinancing borrowings with relatively
high interest rates procured after the global financial crisis andinvestment corporation bonds that have long maturity toredemption

Growth rate of rent revenue (based on existing properties) = +2.1% (actual results
for the 24th through 27th fiscal periods)① Stabilize occupancy rates of office properties in normal operation② Reduce loss of rents by increasing the occupancy rate based on generated rents③ Raise new contract rents and increasing upward revision of rents

Financial Operation
Conduct appropriate control of debt costs with considerations
given to the balance between DPU growth and financial stability① Set up durations that take into account the impact of debt costs on DPU and thebalance of distributed maturity dates, etc.
② Control LTV in a way adaptable to the increase in interest rates over the medium tolong term(Note) These initiatives are just plans or targets, and there is no guarantee that they are actually implemented.

26

4. Appendix

27

4. Appendix

Fund Summary
26th Period
Dec. 2014

27th Period
Jun. 2015

26th Period
Dec. 2014

1 Operating revenue

13,902 mn yen

14,251 mn yen

29 Number of units outstanding

2 Rent revenue – real estate

13,902 mn yen

14,251 mn yen

30 Total cash distributions

3 Expenses related to rent business

6,733 mn yen

6,845 mn yen

31 Distribution per unit

4 Profits

7,169 mn yen

7,406 mn yen

32 Distribution per unit (annualized)

12,598 yen

12,944 yen

5 Depreciation

1,841 mn yen

1,854 mn yen

33 Net assets per unit

239,246 yen

247,529 yen

6 Net income

5,238 mn yen

5,603 mn yen

34 FFO per unit (annualized)

17,022 yen

17,225 yen

7 Total assets

414,091 mn yen

418,778 mn yen

82.2%

82.4%

425,000 yen

397,000 yen

35 AFFO payout ratio

Investment unit price36

27th Period
Jun. 2015

825,000口

873,000口

5,239 mn yen

5,603 mn yen

6,351 yen

6,419 yen

8 Short-term loans payable- mn yen

1,000 mn yen

9 Long-term loans payable

136,524 mn yen

133,958 mn yen

37 PER

33.7 times

30.7 times

10 Investment corporation bonds

54,500 mn yen

41,500 mn yen

38 FFO multiple

25.0 times

23.1 times

706 mn yen

660 mn yen

39 ROE

5.4%

5.2%

12 Net assets

197,378 mn yen

216,092 mn yen

40 PBR

1.8 times

1.6 times

13 Unitholders’ capital

192,044 mn yen

210,395 mn yen

41 Distribution yield (%)

9,010 mn yen

9,260 mn yen

15 NOI yield (based on acquisition price)

4.4%

4.6%

16 NOI

4.6%

11 Capital expenditure

14 NOI
yield (based on gains or losses from valuation)(immediately before the ex-rights date)

3.0%

3.3%

190,110 mn yen

219,825 mn yen

43 NAV per unit

230,437 yen

251,804 yen

4.8%

44 NAV multiple

1.8 times

1.6 times

387,697 mn yen

401,948 mn yen

389,724 mn yen

392,612 mn yen-2,027 mn yen

9,335 mn yen

42 NAV

17 NOI yield (based on appraisal value)

4.6%

4.6%

45 Appraisal value

18 Implied cap rate

3.4%

3.6%

46 Book value

14,043 mn yen

15,038 mn yen

47 Unrealized gains or losses

19 FFO (annualized)
20 AFFO

6,373 mn yen

6,796 mn yen

48 PML value

21 EBITDA

8,318 mn yen

8,551 mn yen

49 Acquisition price22 DSCR

2.0%

2.0%

405,520 mn yen

409,520 mn yen

Next Fiscal Period (Forecast)

7.2 times

7.9 times

LTV (based on total assets)

46.1%

42.1%

50 Operating revenue

13,871 mn yen

14,043 mn yen

24 LTV (based on fair value)

46.4%

41.2%

51 Net income

5,247 mn yen

5,684 mn yen

25 LTV (based on unitholders’ capital)

49.9%

45.6%

52 Distribution per unit

6,360 yen

6,510 yen

12,825 yen

12,914 yen

23

26 Ratio of long-term interest-bearing debts

98.2%

99.4%

27

Average interest rate of interest-bearing debts

1.27%

1.21%

28

Average maturity of interest-bearing debts

3.9 years

4.0 years

53

Distribution per unit (annualized)

28

Track Record of JPR

4. Appendix

 Changes in Distribution per Unit
(JPY/unit)

6,912 6,873
5,738

6,081

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

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

6,430

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

3,731
2,545

Average distribution per unit: JPY 6,323 (except for 1st period)

 Changes in Average Occupancy Rate
（%）

97.7
95.2

94.0

93.8

92.6

93.1

94.3

94.9

98.3

99.0

98.7

98.0

96.1

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

Average of period-average occupancy rate from the 1st through 27th fiscal periods: 95.8%

Changes in Operating Revenue(JPY mn)

14,330

4,469

4,972

5,264

1st
Period2nd
Period3rd
Period

6,790

7,685

8,503

8,587

8,588

9,088

6,421

4th
Period5th
Period6th
Period7th
Period8th
Period9th
Period10th
Period11,171
10,056 10,449 10,830

11th
Period12th
Period13th
Period14th
Period15th
Period11,493 12,314 11,870 11,529 11,772 12,345

16th
Period17th
Period18th
Period19th
Period20th
Period21stPeriod12,963 13,278 13,591 13,734 13,902

14,251

22nd
Period27th
Period23rd
Period24th
Period25th
Period26th
Period29

Steady External Growth Achieved since Listing

4. Appendix

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

Target investment ratio byasset class

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

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

Office (Tokyo)

Office (Other Cities)

Retail properties

4,095
3,809

3,312
2,994

3,919

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

3,415 3,415 3,449

3,106

2,751 2,806
2,453
1,976 2,026

2,092

1,257
921

945

401

415

388

397

132

132

1st
Period2nd
Period

527

992

397

1,001

431

431

394

939

939

961

11th
Period12th
Period13th
Period

1,082

1,147

431

1,841

2,095

2,198

2,198

2,232

2,719

2,719

2,727

2,767

375

375

375

375

375

375

912
311

311

265

265

265

265

265

995

953

953

952

952

952

952

952

952

952

952

952

952

952

14th
Period15th
Period16th
Period17th
Period18th
Period19th
Period20th
Period21stPeriod22nd
Period23rd
Period24th
Period25th
Period26th
Period27th
Period

452
479

1,729

2,658

1,001

575

439

1,357

1,416

2,592

1,001

1,396
774

2,592

2,224

1,796
1,636

2,519

479

332

382

382

404

3rd
Period4th
Period5th
Period6th
Period

483

452

452

500

572

638

7th
Period8th
Period9th
Period770

10th
Period30

Overview of Portfolio

4. Appendix

Makes the best of management advantages of a compound portfolio, achieves high management
returns Portfolio that Enhances Growth Potential and Overview of Portfolio (as of June 30, 2015)
No. ofproperties

Leasablespace

62 properties

470 thousand ㎡

Profitability (as of June 30, 2015)

No. of tenants

Occupancyrate

NOI yield

After-depreciationyield

647 tenants

96.7%

4.6%

3.7%

(Note) In calculating the number of tenants, when the same tenants are housed in multiple properties, they are counted as
one for each property.

 Enhanced Stability through Diversification (as of June 30, 2015)
Diversification by AssetClass

Diversification by Area

Retailproperties
23.2%

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

Diversification by Asset Class andArea

Retail properties
in Other Cities
Central Tokyo
Office properties 7.7%
in Other Cities
15.5%
Retail properties
in Tokyo

(%)

67.6%

Office properties
in Tokyo

Average NOI yield and asset size (area, asset)

8
Office properties Office properties
in Greater Tokyo in Other Cities Retail properties

7
6
5

9.2%
53.1%

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

4
3

Officeproperties inCentral Tokyo

JPY 192.8 bn
3.7%

JPY 37.5 bn
5.8%
JPY 83.9 bn
平均NOI利回り4.6%
JPY 95.2 bn
5.4%
5.1%
分散投資による収益性を向上
Bubble size = portfolio size (based on acquisition price)
Center of Bubble = NOI yield20Complement stability by incorporating some retailproperties into the portfolio

Complement profitability by vigorously selective
investment in properties in Other Cities

Diversification by Size

Tenant Diversification
1% or More Other Tenants(Except for Sponsor and Retail Tenants)

Medium-sized(Site area 3,000 to 10,000 ㎡)

Very Large
31.5% Office 42.0% (Site area 30,000 ㎡ or more)
property
asset size
314.3 bn.
yen

2Tenants・2.3%

14.6%

1% or More of
the Sponsor
4Tenants

No. of
1% or More oftenants
Less than 1%
52.9% 511 30.2% the Retail
496Tenants
9Tenants

26.6%
Large
(Site area 3,000 to 10,000 ㎡)

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

Reduce move-outs risk through tenant diversification(Note) The investment ratio is based on the acquisition price, and the investment ratio of office properties by size is basedon the acquisition price for the total floor space of an entire building.
Ratio of tenants’ exclusive space indicates the ratio based on leased space. In calculating the number of tenants,
when the same tenants are housed in multiple properties, they are counted as one for each property.

 Growth Potential through Preferential Negotiation
Rights (as of June 30, 2015)
JPR owns preferential negotiation rights for most of the co-owned
properties, etc. that occupy approx. 57% of the portfolio
Co-owned properties,
etc.: 30 properties
Full ownership: 32
properties
JPY 175.6 billion
42.9%

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

JPY 233.9 billion
57.1%(Reference)

Total asset value of theentire buildings ofco-owned properties, etc.
Approx. JPY 920 billion(Note) The total asset value of the entire buildings represents the sum total of the values (converted
to acquisition prices) of the entire buildings of respective co-owned properties, etc. owned by
JPR, estimated after taking into account its equity interests in them, etc. Furthermore, thebuilding portion of The Otemachi Tower (Land with Leasehold Interest) is excluded from thesubjects of the estimate.

31

Status of Tenant Diversification (27th Period)

4. Appendix

 Ratio of Tenants Occupancy of 1％ or More (as of June 30, 2015) 20 Largest Tenants
Sponsor and sponsor group

1% or more of
the Sponsors
4 Tenants

1% or more of the other Tenants(except for sponsor and retail)2 tenants・ 2.3%

Rank

Tenant Name

Number of
Tenants

511

52.9%

Name of Occupying Property

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

Tokyo Tatemono Co., Ltd.

Shinjuku Center Bldg.
Olinas Tower

45,343.40

9.8

Kawasaki Dice Bldg.

1% or more of the
30.2% retail
9 Tenants

 Office Tenant by Industry (as of June 30, 2015)
Other 0.9%

22.8%

Tokyo Tatemono Honmachi Bldg.

2

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.7

3

Seiyu GK

Tanashi ASTA

31,121.71

6.8

4

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.3

5The LOFT Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.0

6Olympic Group Corporation

Musashiurawa Shopping Square

9,558.51

2.1

8,253.43

1.8

JPR Shibuya Tower Records Bldg.

8,076.85

1.8

Otemachi Tower

Kawaguchi Center Bldg.

7

Sompo Japan Nipponkoa
Insurance Inc.

8

Tower Records Japan Inc.

Yume-ooka Office Tower
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.

Services

Construction 6.8%
Finance and Insurance 9.0%

(except for sponsor and retail tenants)

Shinjuku Square Tower(Note) “Ratio of occupancy” = Leased space of each tenant / total leasable space
In calculating the number of tenants, when the same tenants are housed in multiple properties, they arecounted as one for each property.

Transportation 3.4%
Medical and Welfare 2.8%
Public Services
5.1%

1% or more other tenants

Kanematsu Bldg.

14.6%
1

Less than 1%
496 tenants(as of June 30, 2015)
Tenants of retail properties

9

YK Tokyo Prime Stage

7,875.50

1.7

10

Taisei-Yuraku Real Estate Co., Ltd.

Rise Arena Bldg.

6,023.39

1.3

11

The Maruetsu, Inc.

Cupo-la Main Bldg.

5,963.00

1.3

5,514.71

1.2(land with land leasehold)Yume-ooka Office Tower
12

Hitachi Urban Investment, Ltd

JPR Nagoya Fushimi Bldg.
JPR Hakata Bldg.

Number of
Office Tenants

484

Real Estate 11.6%

9.9%
Wholesale and Retail

14.3%

Information andCommunication

13.5%
Manufacturing(Note) “Tenant ratio by industry” = Leased space of each tenant by industry / sum total of leased office space
In calculating the number of tenants, when the same tenants are housed in multiple properties, they arecounted as one for each property.

13

BENETTON JAPAN CO., LTD.

Benetton Shinsaibashi Bldg.

5,303.98

1.2

14

Nitori Holdings Co., Ltd.

Musashiurawa Shopping Square

5,285.40

1.1

5,146.03

1.1

Shinagawa Canal Bldg.

15

Level-5 Inc.

16

ATM Japan, Ltd.

Olinas Tower

4,255.56

0.9

17Canon Imaging Systems Inc.

Niigata Ekinan Center Bldg.

4,078.97

0.9

18

Kajima Corporation

Omiya Prime East

4,005.05

0.9

19Mitsubishi Electric Information
Systems Corporation

MS Shibaura Bldg.

3,922.74

0.9

20

Security Communications Association

Olinas Tower

3,544.12

0.8

Yakuin Business Garden(Note) For co-owned buildings, etc., the leased space in accordance with JPR’s ownership interest is indicated.

32

4. Appendix

Contracting Status of Tenants by Property (27th Period)
VacatedFloor Space
10,707㎡

Net Increase / Decreaseof Floor Space

Office (Central Tokyo)

Occupied
Floor Space
6,704㎡

Office (Greater Tokyo)

2,896㎡

1,375㎡

1,521㎡

Office (Other Cities)

1,574㎡

756㎡

817㎡

Retail

589㎡

51㎡

537㎡

Total

11,764㎡

12,890㎡-1,126㎡-4,002㎡（㎡）

Other Cities

Greater Tokyo

Central TokyoNet FloorSpace
Kanematsu Bldg.

-803

Knematsu Bldg. Annex-2,291Shin-Kojimachi Bldg.

194

MS Shibaura Bldg

1,960

Gotanda First Bldg.

-4,236

Shinjuku Square Tower

453

BYGS Shinjuku Bldg.

-250

Shinjuku Center Bldg.

42

Shinagawa Canal Bldg.

251

Tokyo Tatemono Kyobashi Bldg.

364

JPR Sendagaya Bldg.

0

Sience Plaza ・ Yonbancho Plaza

311

Arca East482

JPR Chiba Bldg.

-141

Kawaguchi Center Bldg.

283

JPR Ueno East Bldg.

-403

Tachikawa Business Center Bldg.

90

Yume-ooka Office Tower

164

Olinas Tower

1,046

Kawasaki Dice Bldg.

537

Tokyo Tatemono Honmachi Bldg.

-50

JPR Hakata Bldg.

208

JPR Naha Bldg.

-81

Sompo Japan Sendai Bldg.

331

JPR Nagoya Fushimi Bldg.

408

Vacated Floor Space

Occupied Floor Space

-1,624821-2,291
-334

529
1,960

-4,236
453
-250
42
251
364
-1,829

1,829
-140

451
482

-288

147

-100

383

-403
90
-582

747
1,046
-51

588

-50
-449

657
-256

175

(Note) The above graph excludes properties at which there were no changes in tenants during the 27th fiscal period, but includes changes in tenants from the amendment of lease contracts, etc.

331
408

33

NOI Yield by Property (27th Period)

4. Appendix

EntirePortfolio

4.6%

Office4.4%

Retail5.1%

OfficeRetailArea average

(%)

2

4

6

8

3.9

JPR Ichigaya Bldg.

6.6

Oval Court Ohsaki Mark West

2.7

Central Tokyo

1.4

4.7

Olinas Tower

6.3

Tokyo Tatemono Yokohama Bldg.

6.6

Omiya Prime East

10.0
7.2
4.3
5.1
4.5

Kawasaki Dice Bldg.

4.4

5.6

Average of Greater Tokyo

8.9

2.3
4.3
3.6

Otemachi Tower(land with leasehold interest)

5.4

Science Plaza – Yonbancho Plaza

5.5

Shibadaimon Center Bldg.

4.8

JPR Shibuya Tower Records Bldg.

6.5

JPR Hakata Bldg.

5.9

JPR Nihonbashi-horidome Bldg.

Ginza Sanwa Bldg.

4.6

Tokyo Tatemono Honmachi Bldg.

4.1

Tokyo Tatemono Kyobashi Bldg.

7.8

Niigata Ekinan Center Bldg.

4.0

JPR Harajuku Bldg.

Average of Central Tokyo

3.7

Musashiurawa Shopping Square

Rokubancho Bldg.

Yurakucho Ekimae Bldg.

5.9

Rise Arena Bldg.
Yume-ooka Office Tower

JPR Musashikosugi Bldg.

2.9

Shinagawa Canal Bldg.

JPR Jingumae 432

7.3
5.7

Tachikawa Business Center Bldg.

Cupo-la Main Bldg.

6.2

Across Shinkawa Bldg. Annex

Shinjuku Sanchome East Bldg.

8.4
5.9

Tanashi ASTA

4.7

BYGS Shinjuku Bldg.

JPR Daikanyama

Greater Tokyo

7.1
3.7

Fukuoka Bldg.

Shinjuku Center Bldg.

7.4
5.5

JPR Ueno East Bldg.

Gotanda First Bldg.

10

4.7

Kawaguchi Center Bldg.

3.2

Shinjuku Square Tower

8

Shinyokohama 2nd Center Bldg.

3.1

MS Shibaura Bldg.

6

JPR Yokohama Nihon Odori Bldg.

2.7

JPR Crest Takebashi Bldg.

4

Arca East

5.9

Shin-Kojimachi Bldg.

2

JPR Chiba Bldg.

6.2

JPR Ningyo-cho Bldg.

JPR Sendagaya Bldg.

02.7

Kanematsu Bldg.
Kanematsu Bldg. Annex

Minami Azabu Bldg.

(%)

10

Other Cities

0

JPR Naha Bldg.

7.5

Sompo Japan Sendai Bldg.

7.6

8.8

Sompo Japan Wakayama Bldg.

4.5

Tenjin 121 Bldg.

6.0

JPR Dojima Bldg.

6.2

JPR Hakata-chuo Bldg.
JPR Nagoya Fushimi Bldg.

3.3
5.8

Yakuin Business Garden

2.6

4.8

JPR Umeda Loft Bldg.

2.8

Benetton Shinsaibashi Bldg.

3.5
3.2

JPR Chayamachi Bldg.

3.8

4.0
5.7

Housing Design Center Kobe

Average of Other Cities

3.6

5.3

34

Appraisal Value by Property (27th Period)

4. Appendix（million yen, %）Property nameAcquisitionPrice

End of 26th Period
Appraisal
Value

Book Valueat End of27th Period

End of 27th Period

16,276

12,1004.1

14,693

AppraisalValue
12,400Kanematsu Bldg. Annex

2,874

2,240

4.5

2,420

JPR Ningyo-cho Bldg.

2,100

2,340

4.7

Shin-Kojimachi Bldg.

2,420

2,940

JPR Crest Takebashi Bldg.

4,000

MS Shibaura Bldg.

ChangeAppraisal
Value

Property nameAcquisitionPrice

End of 26th Period

4.0

300

-0.1

Tachikawa Business Center Bldg.

3,188

Appraisal
Value
3,030

2,240

4.4

-

-0.1

Rise Arena Bldg.

5,831

1,951

2,390

4.6

50

-0.1

Yume-ooka Office Tower

4.4

2,503

3,010

4.3

70

-0.1

Olinas Tower

2,840

4.4

3,332

2,910

4.3

70

-0.1

11,20011,0004.8

11,07811,300

4.6

300

-0.2

Gotanda First Bldg.

2,920

2,020

4.6

2,644

2,170

4.6

150

-

Fukuoka Bldg.

2,920

2,860

4.3

3,007

2,940

4.2

80

-0.1

JPR Ichigaya Bldg.

5,100

4,700

4.3

5,263

4,780

4.2

80

Oval Court Ohsaki Mark West

3,500

4,540

4.5

2,965

4,540

4.4

Shinjuku Square Tower

10,180

7,492

4.3

8,881

7,509

BYGS Shinjuku Bldg.

15,121

13,900

4.3

15,572

710

825

5.2

Shinjuku Center Bldg.

21,00013,100Minami Azabu Bldg.

3,760

2,500

Shinagawa Canal Bldg.

1,870

Rokubancho Bldg.

Yield

Yield

Yield

Book Valueat End of27th Period

End of 27th Period

5.2

2,926

Appraisal
Value
3,120

6,990

4.6

5,422

6,510

5,700

5.2

31,30033,800Tokyo Tatemono Yokohama Bldg.

7,000

Omiya Prime East

Yield

ChangeAppraisal
Value

Yield

Yield

5.1

90

-0.1

7,350

4.5

360

-0.1

5,593

5,740

5.0

40

-0.2

4.3

28,59434,500

4.2

700

-0.1

7,280

5.2

6,907

7,530

5.0

250

-0.2

6,090

6,590

5.4

6,086

6,850

5.2

260

-0.2

10,20012,9005.5

7,527

13,100

5.4

200

-0.1

Cupo-la Main Bldg.

2,100

2,620

5.6

1,801

2,630

5.6

10

-

-0.1

JPR Musashikosugi Bldg.

7,260

5,410

5.2

7,133

5,340

5.2

-70

-

-

-0.1

Musashiurawa Shopping Square

4,335

4,100

5.3

3,881

4,090

5.3

-10

-

4.3

17

-

15,08015,000

4.4

13,952

15,100

4.4

100

-

14,500

4.2

600

-0.1

Greater Tokyo

122,891

127,040-

110,693

129,180

-

2,140

-

603

828

5.1

3

-0.1

Niigata Ekinan Center Bldg.

2,140

2,300

6.4

1,710

2,330

6.3

30

-0.2

4.0

22,216

13,500

3.9

400

-0.1

Tokyo Tatemono Honmachi Bldg.

4,150

3,250

5.5

4,129

3,280

5.3

30

-0.2

4.8

3,891

2,540

4.7

40

-0.1

JPR Hakata Bldg.

2,900

2,700

5.6

3,054

2,750

5.5

50

-0.1

1,770

4.6

1,772

1,770

4.5

-

-0.1

JPR Naha Bldg.

1,560

1,350

6.5

1,369

1,370

6.4

20

-0.1

2,800

3,200

6.9

2,864

3,230

6.8

30

-0.1

Sompo Japan Sendai Bldg.

3,150

3,400

6.0

2,228

3,470

5.8

70

-0.2

JPR Harajuku Bldg.

8,400

7,330

4.3

8,739

7,350

4.3

20

-

Sompo Japan Wakayama Bldg.

1,670

1,600

7.2

1,405

1,640

7.0

40

-0.2

Tokyo Tatemono Kyobashi Bldg.

5,250

5,560

4.4

5,357

5,760

4.3

200

-0.1

Tenjin 121 Bldg.

2,810

2,180

5.4

2,170

2,290

5.2

110

-0.2

JPR Nihonbashi-horidome Bldg.

5,100

6,160

4.7

4,927

6,140

4.7

-20

-

JPR Dojima Bldg.

2,140

2,160

5.3

2,162

2,280

5.1

120

-0.2

JPR Sendagaya Bldg.

15,050

11,1004.3

15,064

11,000

4.2

-100

-0.1

JPR Hakata-chuo Bldg.

1,920

1,680

5.4

1,832

1,700

5.3

20

-0.1

Ginza Sanwa Bldg.

3,400

3,450

3.8

3,633

3,450

3.8

-

-

JPR Nagoya Fushimi Bldg.

4,137

2,880

6.0

4,020

2,920

5.9

40

-0.1

36,00039,8003.3

38,38842,300

3.2

2,500

-0.1

Yakuin Business Garden

10,996

12,0005.0

10,952

13,000

4.8

1,000

-0.2

Science Plaza – Yonbancho Plaza

2,660

2,930

4.5

2,705

3,000

4.4

70

-0.1

JPR Umeda Loft Bldg.

13,00013,700

4.6

12,583

13,700

4.6--

Shibadaimon Center Bldg.

4,220

4,840

4.4

4,247

4,970

4.3

130

-0.1

Benetton Shinsaibashi Bldg.

5,430

4,450

4.7

5,118

4,390

4.7

-60

-

12,00013,2004.0

11,564

13,600

3.9

400

-0.1

Housing Design Center Kobe

7,220

6,660

6.1

6,395

6,660

6.1

-

-

JPR Daikanyama

2,160

1,540

4.0

2,186

1,560

3.9

20

-0.1

JPR Chayamachi Bldg.

6,000

4,990

4.6

5,968

5,470

4.3

480

-0.3

JPR Jingumae 432

4,275

3,600

3.7

4,319

3,640

3.6

40

-0.1

Other Cities

69,22365,300-65,101

67,250

-

1,950

-

Shinjuku Sanchome East Bldg.

2,740

2,620

4.0

2,673

2,690

3.9

70

-0.1
Total

405,520

387,697-

388,612397,357

-

9,660

-

4,000

4,580

4.3

4,000

4,591

4.3

11

-

Kanematsu Bldg.

Across Shinkawa Bldg. Annex

Otemachi Tower(land with land leasehold)

JPR Shibuya Tower Records Bldg.

Tanashi ASTA

Kawasaki Dice Bldg.

Yurakucho Ekimae Bldg.

3,400

2,860

3.8

3,346

2,910

3.7

50

-0.1

Central Tokyo

213,406

195,357-

212,817200,927

-

5,570

-

Arca East

5,880

6,220

4.5

4,422

6,220

4.4

-

-0.1

Property Acquired in the 27th Period

JPR Chiba Bldg.

2,350

1,690

5.9

2,329

1,700

5.8

10

-0.1

Shinjuku Square Tower（additional acquisition)

JPR Yokohama Nihon Odori Bldg.

2,927

2,380

5.5

2,569

2,390

5.4

10

-0.1

※The appraisal value at the end of the 26th period indicates the value upon acquiring the property (as of Mar. 1, 2015).

Shinyokohama 2nd Center Bldg.

1,490

1,620

5.9

1,462

1,640

5.7

20

-0.2

Kawaguchi Center Bldg.

8,100

7,390

5.8

7,056

7,530

5.6

140

-0.2

JPR Ueno East Bldg.

3,250

4,320

4.7

3,026

4,350

4.6

30

-0.1

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

Difference between Appraisal Value and Book
Value at the end of 27th fiscal period

9,335

35

Status of Unitholders (27th Period)

4. Appendix

 Status of Units by Investor TypeEnd of 26th Period

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

End of 27th Period

Increase/decrease

Share (%)

180,84521.9

186,835

21.4

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

61,582

7.5

66,424

7.6

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

49,105

6.0

56,723

6.5

Tokyo Tatemono Co., Ltd.

29,3003.6

29,300

3.4

No. of units

Share (%)

5.9

14,9641.5

478,01657.9

514,71359.0

36,697

1.0

720

0.1

1,373

0.2

653

0.1

81,331

9.9

96,111

11.0

14,7801.2

328,55039.8

346,00739.6

17,457-0.2

48,661

5.9

48,059

5.5

-602

-0.4

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

31,777

3.9

29,115

3.3

Japan Trustee Services Bank, Ltd. (Trust Account)

1,554

0.2

2,142

0.2

588

0.1

Kawasaki Gakuen

25,0003.0

25,0002.9

11,227

1.4

14,064

1.6

2,837

0.3

Meiji Yasuda Life Insurance Company

24,0002.9

24,000

2.7

5,973

0.7

6,957

0.8

984

0.1

State Street Bank West Client Treaty 505234

83,11010.1

86,249

9.9

3,139

-0.2

15,1291.8

16,8161.9

207,057

25.1

186,871

21.4-20,186

-3.7

6,001

0.7

14,761

1.7

19,8442.4

33,2303.8

13,3861.4

100873,000

100

48,000End of 27th Period

Nomura Bank (Luxembourg) S.A.
State Street Bank -West Pension Fund Clients – Exempt 505233

11,812

1.4

13,268

1.5

Total

434,52152.7

462,24252.9-

 Unitholder Ratio (by number of investment units)

Increase/decrease(%)

No. of units

Share (%)

No. of units

Share (%)

11,142

94.1

14,791

94.3

3,649

0.1

128

1.1

179

1.1

51

0.1

Major banks withnational networks

1

0.0

1

0.0

-

-0.0

Regional banks

47

0.4

56

0.4

9

-0.0

Trust banks

14

0.1

15

0.1

1

-0.0

Life insurancecompanies
Nonlife insurancecompanies
Credit unions(Shinkin banks)

10

0.1

10

0.1

-

-0.0

3

0.0

6

0.0

3

0.0

35

0.3

57

0.4

22

0.1

18

0.2

34

0.2

16

0.1

Other domestic companies

198

1.7

344

2.2

146

0.5

Foreign investors

345

2.9

353

2.2

8

-0.7

23

0.2

22

0.1

-1

-0.1

11,836100

15,689

100

3,853

-

Total

No. of units

Share (%)

51,937

Share (%)

Securities companies

Share (%)

No. of units

4.5

No. of units

OthersNo. of units

Share (%)

End of 26th Period

Financial institutions

End of 27th Period

36,973

 Composition of Unitholders by Investor Type

Individuals

End of 26th Period
Top 10 Principle Unitholders

No. of units

825,000

Total

 Top 10 Principle Unitholders

Foreign Investors

Other Domestic Companies

Financial Institutions

Individuals

100
23.0

21.9

10.0

10.2

61.8

63.1

21.4

25.4

23.4

25.9

25.3

11.7

11.3

10.3

9.9

55.5

57.6

57.4

58.6

7.3

7.7

6.5

6.2

5.1

4.8

4.5

5.9

20th

21st

22nd

23rd

24th

25th

26th

27th

75

25.1

10.1

9.9

50
60.3

62.8

25

0

36

Initiatives on Environmental Friendliness

4. Appendix

JPR has continuously conducted reduction of energy cost and environmental-friendly management
operations, and has received certain recognition from external organizations.
 Energy Conservation

 Acquisition of DBJ Green Building Certification
Obtained the DBJ Green Building Certification, a system by Development Bank ofJapan Inc. (DBJ) to certify real estate properties evincing high environmental andsocial awareness for 13 properties

Achieved a reduction rate much superior to the target value, based on the five-year reduction plan
Promotion of power saving measures at each building, involving tenants, and renovations for enhanced energy
efficiency proved effective
Energy cnsumption per unit (left axisis)(kl/thousand ㎡)

50
100.0
89.6

45

84.4

Comparison with the base year (right axis) (%)

100

Targetvalue
96.05%

A significant
reduction of

16.8% from the

90

80

83.2

Olinas Tower

43.02
35
36.29
0
30

Fiscal 2010

Fiscal 2011

38.53

Fiscal 2012

37.74

Fiscal 2013

Properties withexcellent environmental& social awarenessbase year

87.7
40

Properties withexceptionally highenvironmental & social
awareness70
35.8

Yakuin Business
GardenProperties with highenvironmental& social awareness

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

YumeOmiyaooka-OfficePrime East
Tower

Properties withsatisfactory environmental& social awareness

060

Fiscal 2014

(Note) The targeted value of 96.05 represents the reduction rate in five years over the base year after reducing by 1% year-onyear in each of the five years. This sets the average change in energy consumption per unit over five fiscal years at 99.0%. In
contrast, JPR has achieved the average change in energy consumption per unit over five fiscal years of 95.5%.
JPR Crest
Takebashi
Bldg.

Energy-Saving Renovation at Shinjuku Center Bldg.
Highly-efficient LED fixtures, illuminancesensors and wireless variable light systems,
etc. were installed in the lobby and elevator
hall on the 1st floor

JPR Ueno
East Bldg.

BYGS
Shinjuku
Bldg.

JPR
Nihonbashihoridome
Bldg.

Kanematsu
Bldg.

Oval Court
OhsakiMark West Designation of “Green Star”, the Highest Ranking, in the GRESB Survey
JPR was designated as “Green Star,” the highest ranking
among the four evaluation categories, in the 2014
survey, with acknowledgements given to the superiorityof JPR’s “Management & Policy” and “Implementation &Measurement” dimensions.

• Reduced power consumption by 95%(compared with the figure before installation)• Renovation expenses are assumed tobe collected in 4.5 years• Improved comfort as optimum
illuminance was secured by installing
illuminance sensors that automaticallyadjust to the sunshine brightness andhours of sunlight

The Global
Global Real
Real Estate
Estate Sustainability
Sustainability Benchmark
Benchmark (GRESB)(GRESB) isis aa benchmark
benchmark systemsystem forfor evaluating
evaluating sustainability
sustainability
The
performance
performance inin thethe real
real estate
estate sector,
sector, establishedestablished inin 20092009 primarily
primarily by
by major
major European
European pension
pension fund
fund groups.
groups.
It isofbasedon surveys
for members
real estate(pension
companies
andinvestment
managers.
As of asAs
September
2014,conducted
more thaneach
130 year
GRESB
funds
and
other institutional
investors
September
2014, morethan 130
members(pensionfunds
and other
institutional
investors
as well aswell as investment
managers
and GRESB
real estatecompanies)
utilize
GRESB
to evaluate
investment
targets.
ELV Hallinvestment managers and real estate companies) utilize GRESB to evaluate investment targets.

37

Overview of Asset Manager

4. Appendix

 Governance System

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

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

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

 Decision Making Based on Stringent Processes

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

Decision-making Process(for property acquisitions)
Review, screening

Decision on
acquisition policy

Due diligence

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

Investment Subcommittee

Due Diligence Subcommittee

Review to ensure that decision procedures at Investment
Subcommittee are in compliance with laws, regulations,
JPR’s Articles of Incorporation, internal policies of AssetManager

Decide on acquisition policy after reviewing
disclosed material from seller, etc.

Item

Fixed fee

TRIM’s Board of
Directors

Share

75 mn yen

14.6%

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

255 mn yen

49.7%

Incentive Fee 2

3% of JPR’s income before income
taxes

173 mn yen

33.8%

Incentive Fee 3

0.25% of the acquisition priceupon new acquisition

10 mn yen

1.9%

 Asset Manager
Name

Tokyo Realty Investment Management, Inc.

Capitalization¥ 350 million

Business
description

Asset management for investment corporation
Name

Compliance Committee
JPR’s Board Directors

Investment Subcommittee

JPY 12.5 million per month

Results ofRemuneration(27th Period)

Incentive Fee 1

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

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

Shareholder

Number of
units

Share

Tokyo Tatemono Co., Ltd.

2,800

40%

Taisei Corporation

1,400

20%

Yasuda Real Estate C., Ltd.

1,400

20%

Sompo Japan Nipponkoa Insurance
Inc.

700

10%

Meiji Yasuda Life Insurance Company

700

10%

Total

7,000

100%

38

Trend of Office Property Leasing Market

4. Appendix

Vacancy rate remains on a downward trend, with the new advertised rent rising by 4.8% in thelatest 12 months

 Forecast for Changes in Supply and Demand Trend and
Vacancy Rate (Tokyo CBDs)

 Change in Vacancy Rate and Asking Rent (Tokyo CBDs)
Vacancy Rate: 5.1%(－1.3%pt), Asking Rent 17,401 yen( +4.8％)(as of Jun. 2015)(compared with Jun. 2014)• If new demand is limited to a certain extent, the vacancy rate will remain
at the upper 4% level (model B)(Recent peak of vacancy rate)（thousand tsubo）

Jun. 2012
9.4%• If new demand is created at mostly the same level as in the past three
years, the vacancy rate will show a decreasing trend in 2015 andthereafter (model A)

Dec. 2012
8.7%

400

(%)

10

8.7

Jun. 2013

7.3

8.5%
Dec. 2013

Forecast
5.5

7.3%
Jun. 2014

Model B
5

300

6.5%
Dec. 2014
5.5%

Jun. 2015

Model A

5.1%

200

16,953 yen/tsubo

16,607 yen/tsubo

16,207 yen/tsubo

16,377 yen/tsubo

16,572 yen/tsubo

16,763 yen/tsubo

17,401 yen/tsubo

0
100

0
2012

2013
Asking rent

2014
Vacancy rate

2015

(year)

0

-5

2012

2013

2014

2015

2016

2017

2018

-10
2019 (year)

New supply (left axis)

New demand (actual result; left axis)

New demand(Model A; left axis)

New demand(Model B; left axis)

Vacancy rates(Model A; right axis)

Vacancy rates(Model B; right axis)

Vacancy rate(actual results; right axis)(Note) Prepared by TRIM on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co., Ltd(Note) Actual results through 2014 are based on the Office Report (Tokyo CBDs) publicized by Miki Shoji Co., Ltd.,and new supply in 2015 and thereafter has been prepared based on surveys and simulations conducted by
TRIM.

39

Trend of For-sale Real Estate Market

4. Appendix

Cap rates remain on a downward trend, and J-REITs maintain the high level in terms of the ratio of
acquisitions of office properties by sector
 Changes in Acquisition Cap Rates of Office Properties inTokyo (J-REITs)

 Changes in Acquisition Value by Sector
J-REITs maintained their ratio of property acquisition at a high level,although acquisition by foreign-capital corporations increased

Cap rates remain on a downward trend through 2015(%)

(JPY 100 mn)(%)

725,00080

70

Investment ratioof J-REIT

20,000
660

50

15,00038

510,000

40

30

4

20
5,000

J-REIT

10

0
3

0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
(year)

000 2001
01 2002
02 2003
03 2004
04 2005
05 2006
06 2007
07 2008
08 2009
09 201010 2011
11 201212 2013
13 201414 (year)
2000
Unknown

Foreign Investor

Corporation and Finance Institution, etc.

Construction and Real Estate, etc.

SPC･Private REIT

J-REIT

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

（Note） Prepared by TRIM based on survey on actual real estate transaction by Urban Research Institute Corporation

40

Portfolio Map

4. Appendix

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

83.1%

Central Tokyo

62

30properties
217.4 billion yen

15 properties 16.9%
409.5
69.2 billion yen
billion yen
properties

Greater Tokyo

30.0%

c

17 properties
122.8 billion yen

Other Cities
Tokyo Tatemono Honmachi Bldg.

C-17

JPR Dojima Bldg.

C-1

JPR Umeda Loft Bldg.

C-3

Benetton Shinsaibashi Bldg.

C-5

JPR Chayamachi Bldg.
C-12

Housing Design Center Kobe

Sompo Japan Sendai Bldg.

SendaiC-7

JPR Hakata Bldg.

C-14

Tenjin 121 Bldg.

C-18

JPR Hakata-chuo Bldg.

C-20

Niigata
NagoyaYakuin Business Garden Osaka

A-16

Shinagawa Canal Bldg.

Kanematsu Bldg. Annex

A-17

Rokubancho Bldg.

A-3

JPR Ningyo-cho Bldg.

A-18

JPR Harajuku Bldg.

A-11

Shinjuku Ward
Chiyoda Ward

Shinjuku

A-4

Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.

A-19
A-20

A-5

A-3

A- 5

Gotanda First Bldg.

A-22

Ginza Sanwa Bldg.

A-8

Fukuoka Bldg.

A-23

Otemachi Tower (land with land leasehold)

A-9

JPR Ichigaya Bldg.

A-24

Science Plaza・Yonbancho Plaza

A-25

Shibadaimon Center Bldg.

Shinjuku Square Tower

A-1

JPR Shibuya Tower Records Bldg.

A-12

BYGS Shinjuku Bldg.

A-2

JPR Daikanyama

A-13

Across Shinkawa Bldg. Annex

A-3

JPR Jingumae 432

A-14

Shinjuku Center Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-13
A-1
A-2

Harajuku

A-7

Oval Court Ohsaki Mark West

Tokyo
A-8

Shibuya Ward

JPR Sendagaya Bldg.

A-10

A-23

A-21

JPR Nihonbashi-horidome Bldg.

A-11

A-20

A-9
A-17

Tokyo Tatemono Kyobashi Bldg.

A-21

A-5

A-24

A-4

MS Shibaura Bldg.

Minami Azabu Bldg.

Ichigaya
A- 4

A-6

A-15

A-12

A-14

A-3

A-19
A-22

A-18

Minato Ward

A-1

A-25

Shibuya

Chuo Ward
A-2
Tamachi
A-15

A-6
Gotanda
A-10
A-16

A-7

Shinagawa Ward

Yurakucho Ekimae Bldg.(Yurakucho Itocia)

Ohsaki

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

Arca East

B-1

Tanashi ASTA

B-2

JPR Chiba Bldg.

B-3

Cupo-la Main Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-4

JPR Musashikosugi Bldg.
Musashiurawa Shopping
SquareKawasaki Dice Bldg.

B- 5

Shinyokohama 2nd Center Bldg.

B-5

B-6

Kawaguchi Center Bldg.

B-6

B-7

JPR Ueno East Bldg.

B- 8

Tachikawa Business Center Bldg.

Omiya

B-13

SAITAMA
B-5

B-6

Musashiurawa

B-3

CHIBA

Kawaguchi

Ikebukuro
B-9

B-1
B-8

TachikawaB-7

Tanashi

B-11
B-1

Ueno
Shinjuku

TOKYO

Kinshicho
Tokyo
Chiba

Shibuya
Shinagawa

C-1

C-19

Niigata Ekinan Center Bldg.

JPR Nagoya Fushimi Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower
Tokyo Tatemono
Yokohama Bldg.
Omiya Prime East

B-12
B-13

Kobe
Fukuoka

Kanematsu Bldg.

A-2

B

C-4

C-4

A-1

A-5

53.1%

Other cities

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

A

B-2
Musashikosugi

KANAGAWA
B-4

B-6

B-5
B-12
B-3
B-10

Wakayama

KawasakiShin-Yokohama

Yokohama
Nihon-odoori
Kamiooka

Okinawa

C-9
C-13

JPR Naha Bldg.

Sompo Japan Wakayama Bldg.

41

4. Appendix

A-1 Kanematsu Bldg.

Portfolio List（Central Tokyo）
A-2 Kanematsu Bldg. Annex

A-3 JPR Ningyo-cho Bldg.

A-4 Shin-Kojimachi Bldg.

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

③ Feb. 1993

③ Dec. 1989

③ Oct. 1984

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

⑦ Dec. 2001

⑦ Nov. 2001

⑦ Nov. 2001

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

A-5 JPR Crest Takebashi Bldg.

A-6 MS Shibaura Bldg.

A-7 Gotanda First Bldg.

A-8 Fukuoka Bldg.

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

③ Feb. 1988

③ Jul. 1989

③ May. 1990

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

⑦ Mar. 2003

⑦ Jul. 2003

⑦ Oct. 2003

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

A-14 Shinjuku Center Bldg.

A-9 JPR Ichigaya Bldg.

A-23 Otemachi Tower (land with land leasehold)

A-10 Oval Court Ohsaki Mark West

A-11 Shinjuku Square Tower① Chiyoda-ku②－③ Apr. 2014
11,034㎡④(ground area)

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

A-12 BYGS Shinjuku Bldg.

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

③ Jun. 2001

③ Oct. 1994

③ Sep. 1985

④ 5,889㎡④ 28,576㎡④ 78,796㎡④ 25,733㎡⑤ 5,889㎡⑤ 4,025㎡⑤ 17,623㎡⑤ 25,733㎡⑥ 100.0%⑥ 23.9%⑥ 62.7%⑥ 100.0%⑦ May. 2004

⑦ Jun. 2004

⑦ Jul. 2004

⑦ Nov. 2004

⑧ 5,100 mn yen⑧ 3,500 mn yen⑧ 14,180 mn yen⑧ 15,121 mn yen

A-13 Across Shinkawa Bldg. Annex

A-15 Minami Azabu Bldg.

A-16 Shinagawa Canal Bldg.

A-17 Rokubancho Bldg.

① Chuo-ku① Minato-ku① Minato-ku① Chiyoda-ku② S・SRC B2/10F② S 9F② S B1/8F② SRC B3/7F③ Jun. 1994

③ Jun. 1992

③ Jul. 2008

③ Oct. 1991

④ 5,535㎡④ 4,570㎡④ 5,216㎡④ 4,205㎡⑤ 1,233㎡⑤ 4,570㎡⑤ 1,677㎡⑤ 4,205㎡⑥ 35.5%⑥ 100.0%⑥ 45.6%⑥ 100.0%② SRC・RC・S B5/54F ⑥ 8.6%

⑦ Nov. 2004

⑦ Jul. 2008

⑦ Dec. 2008

⑦ Dec. 2009

③ Oct. 1979

⑦ Mar. 2008

⑧ 710 mn yen⑧ 3,760 mn yen⑧ 1,870 mn yen⑧ 2,800 mn yen④ 176,607㎡⑧ 21,000 mn yen① Shinjuku-ku⑤ 8,172㎡(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

42

4. Appendix

A-18 JPR Harajuku Bldg.

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

A-20 JPR Nihonbashi-horidome Bldg.

A-21 JPR Sendagaya Bldg.

A-22 Ginza Sanwa Bldg.

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

③ Jun. 2002

③ May. 2009

③ Oct. 1982

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

⑦ Mar. 2010

⑦ May. 2010

⑦ Aug. 2011

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

A-24 Science Plaza – Yonbancho Plaza

A-25 Shibadaimon Center Bldg.

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

③ Jul. 1993

④ 24,560㎡④ 11,419㎡⑤ 3,213㎡⑤ 5,285㎡① Shibuya-ku⑤ 6,466㎡⑥ 22.4%⑥ 65.4%② SRC B1/9F⑥ 100.0%⑦ Dec. 2013

⑦ Dec. 2013

③ Mar. 1989

⑦ Dec. 2009

⑧ 2,660 mn yen⑧ 4,220 mn yen④ 6,466㎡⑧ 8,400 mn yen

A-1 JPR Shibuya Tower Records Bldg..

A-2 JPR Daikanyama

A-4 Shinjuku Sanchome East Bldg.

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

③ Jul. 2002

③ Feb. 2006

③ Jan. 2007

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

⑦ Oct. 2004

⑦ Mar. 2006

⑦ Mar. 2007

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

43

4. Appendix

B-1 Arca East Bldg.

Portfolio List（Greater Tokyo）
B-3 JPR Yokohama Nihon Odori Bldg.

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

③ Jan. 1991

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

⑦ Dec. 2001

⑧ 5,880 mn yen

B-11 Olinas Tower⑧ 2,350 mn yen⑦ Jun. 2009

④ 257,842㎡⑧ 31,300 mn yen

B-1 Tanashi ASTA

② SRC B2/17F③ Feb. 1995
④ 80,675㎡⑤ 20,727㎡⑥ 43.6%（51.3%）⑦ Nov. 2001
⑧ 10,200 mn yen⑤ 7,781㎡⑤ 15,401㎡⑥ 100.0%⑥ 100.0%⑥ 86.5%⑦ Nov. 2001

⑦ Sep. 2002

⑦ Feb. 2004

⑧ 2,927 mn yen⑧ 1,490 mn yen⑧ 8,100 mn yen

B-9 Rise Arena Bldg.

③ Oct. 1992

③ Dec. 1994

③ Jan. 2007

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

⑦ Sep. 2005

⑦ Mar. 2007

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

Yokohama,
Kanagawa⑤ 8,772㎡⑥ 100.0%⑦ Dec. 2010
⑧ 7,000 mn yen①

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

B-3 Cupo-la Main Bldg.
① Nishitokyo, Tokyo④ 28,420㎡⑤ 9,146㎡② S・SRC B1/12F④ 8,772㎡③ Feb. 2006

③ Feb. 1994

④ 7,781㎡② S・SRC B1/8F③ May. 1981

② SRC・RC・S B2/45F ⑥ 23.3%③ Aug. 1991

④ 9,146㎡① Toshima-ku② SRC B1/9F⑤ 23,692㎡② S・SRC B2/12F③ Oct. 1989

① Tachikawa, Tokyo①① Sumida-ku② SRC B1/11F

Kawaguchi,
Saitama② S・SRC B2/15F① Taito-ku

B-12 Tokyo Tatemono Yokohama Bldg.

B-6 Kawaguchi Center Bldg.

Yokohama,①
Kanagawa

B-8 Tachikawa Business Center Bldg.

B-7 JPR Ueno East Bldg.

B-5 Shinyokohama 2nd Center

Yokohama,①
Kanagawa①

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

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

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

Kawasaki,①
Kanagawa③ Jan. 2006

③ Mar. 1983

④ 48,321㎡④ 18,394㎡⑤ 5,870㎡⑤ 18,394㎡⑥ 16.7%(19.2%)⑥ 100.0%⑦ Mar. 2006

⑦ Sep. 2006

⑧ 2,100 mn yen⑧ 7,260 mn yen② SRC・RC・S B1/6F

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

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

44

4. Appendix

C-1 Niigata Ekinan Center Bldg.

Portfolio List（Other Cities）
C-4 Tokyo Tatemono Honmachi Bldg.

C-7 JPR Hakata Bldg.

C-9 JPR Naha Bldg.

C-12 Sompo Japan Sendai Bldg.

① Niigata, Niigata① Osaka, Osaka① Fukuoka, Fukuoka① Naha, Okinawa① Sendai, Miyagi② S・SRC B1/10F② SRC B3/9F② S・RC B1/12F,S1F② SRC・S 12F② SRC B1/12F③ Mar. 1996

③ Feb. 1970

③ Jun. 1985

③ Oct. 1991

③ Dec. 1997

④ 19,950㎡④ 14,619㎡④ 9,828㎡④ 5,780㎡④ 10,783㎡⑤ 5,444㎡⑤ 7,709㎡⑤ 9,828㎡⑤ 5,780㎡⑤ 10,783㎡⑥ 32.9%(58.0%)⑥ 72.0%(71.0%)⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ Nov. 2001

⑦ Nov. 2001

⑦ Nov. 2001

⑦ Nov. 2001

⑦ Jun. 2002

⑧ 2,140 mn yen⑧ 4,150 mn yen⑧ 2,900 mn yen⑧ 1,560 mn yen⑧ 3,150 mn yen

C-13 Sompo Japan Wakayama Bldg.
Wakayama,①
Wakayama② S 9F③ Jul. 1996
④ 6,715㎡⑤ 6,715㎡⑥ 100.0%⑦ Jun. 2002
⑧ 1,670 mn yen

C-14 Tenjin 121 Bldg.

C-17 JPR Dojima Bldg.

C-18 JPR Hakata-chuo Bldg.

① Fukuoka, Fukuoka① Osaka, Osaka② S・SRC 13F② SRC B2/9F③ Jul. 2000

③ Oct. 1993

④ 8,690㎡④ 5,696㎡⑤ 3,117㎡⑤ 5,696㎡⑥ 52.2%⑥ 100.0%⑦ Jun. 2002

⑦ Jan. 2004

⑧ 2,810 mn yen⑧ 2,140 mn yen① Fukuoka, Fukuoka② SRC 8F
③ Feb. 1993
④ 3,874㎡⑤ 3,874㎡⑥ 100.0%⑦ Jun. 2004
⑧ 1,920 mn yen

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

C-20 Yakuin Business Garden

C-1 JPR Umeda Loft Bldg

C-3 Benetton Shinsaibashi Bldg.

C-4 Housing Design Center Kobe

C-5 JPR Chayamachi Bldg.

① Osaka, Osaka① Osaka, Osaka① Kobe, Hyogo① Osaka, Osaka② SRC B1/8F② S B2/10F② SRC･S B2/11F② S・SRC 9F③ Apr. 1990

③ Feb. 2003

③ Jun. 1994

③ Jun. 1994

④ 17,897㎡④ 5,303㎡④ 33,877㎡④ 3,219㎡⑤ 17,897㎡⑤ 5,303㎡⑤ 33,877㎡⑤ 3,219㎡① Fukuoka, Fukuoka⑤ 22,286㎡⑥ 100.0%② SRC 14F

⑥ 100.0%⑥ 100.0%⑥ 100.0%⑥ 100.0%⑦ May. 2003

③ Jan. 2009⑦ Aug. 2012

⑦ May. 2005

⑦ Sep. 2005

⑦ Aug. 2006

⑧ 13,000 mn yen④ 22,286㎡⑧ 10,996 mn yen⑧ 5,430 mn yen⑧ 7,220 mn yen⑧ 6,000 mn yen(Note) The property overview indicates (1) location, (2) structure / floors, (3) completion, (4) total floor space (entire building), (5) total floor space (equivalent to equity interest), (6) building ownership ratio (ratio in parenthesis does not include parking spaces), (7) acquisition date and (8)acquisition price.

45

4. Appendix

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

Renewed JPR’s website in order to enrich IR information and enhance its
ability to provide information

JPR

Property Database
Posted the monthly occupancy
rates and historical data sinceacquisition for each property in theportfolio, etc.
Composed with consideration given
to easiness to see information andusability

Property Overview/Access Map
Posted property overview edited andsupervised by asset managers who
are actually in charge of the property
Provides investors with information as
to the features of properties and theirlatest conditions, etc. that are hard tounderstand from data alone
Property maps have a new function toallow viewers to search the accessroutes to the properties from thenearest stations

IR Mail Delivery Service
Started e-mail inquiry service andIR mail delivery service for timely
disclosure46