38th
Japan Prime Realty Investment Corporation
Presentation Material For the 38th Fiscal Period
Ended December 2020

Security code 8955

（Asset Manager）
Tokyo Realty Investment Management, Inc.

Table of Contents
Overviews of JPR

3

1. Summary of Financial Results

3. Financial Results and Operating Forecasts

Financial Results for the 38th Fiscal Period andOperating forecasts

5

Overview of Financial Results for the 38th Fiscal Period (Dec. ‘20) (periodon-period comparison)26

Fluctuation in Distribution per Unit

6

Summary of Operating Results

7
8Overview of Financial Results for the 38th Fiscal Period (Dec. ‘20)
(compared with forecast)

28

Forecasts of Financial Results for the 39th Fiscal Period (Jun. ‘21)
(compared with 38th period)

29

Forecasts of Financial Results for the 40th Fiscal Period (Dec. ‘21)
(compared with forecast for 39th period)

30

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

31

Change in Rental Business Profit and Loss

32

Impact of COVID-19
Status and Outlook of Office Market
Growth Strategy

911Medium-term Target

12

2. Operational Status and Growth Strategy
2-1. Internal Strategy

4. Appendix

Occupancy Status

15

Leasing Enhanced Real Estate

16
17
18

Status of Rent
Status of Retail Properties

2-2. External Strategy
External Strategy
Asset Replacement in December 2020 Period
Main Sponsor Pipeline

19
20
21

2-3. Financial Strategy
Financial Status

22

Diverse Status of Lenders

23

2-4. Sustainability
Highlights

24

34
35
36

GovernanceMove-Ins/Move-Outsof Tenants

37

Asset Manager

Yields38

Fund Summary
Portfolio
Diversification of Tenants

39
Example of Construction Works 40
Occupancy Rate and Rents
Appraisal Value

41

Appraisal Value by
Property42

ESG of JPR

43

Environment

44

Environment/ Society

45

Unitholders
Investment Unit Price and DPU
Office Property Leasing Market

For-Sale Property Market
Portfolio Map
Portfolio List
Introduction to the JPR Website
Glossary
Disclaimer

46
47
48
49
50
51
52
53
61

62
63

2

Overview of JPR■Overview of JPR■Characteristics of JPR(as of the end of December 2020)

Name

Japan Prime Realty Investment Corporation(abbreviated as JPR)

Securities code

8955

Listing dateJune 14, 2002 (18.5 years since listing)End of fiscal
periodJune and December

Operational
standard of
portfolio(Ratio by asset class)
Office 70～90% / Urban Retail etc. 10～30%(Target investment
ratio)

Asset Manager

Sponsors(shareholding
ratio)(Ratio by area)
Tokyo 80～90% / Other cities 10～20%

Tokyo Realty Investment Management Inc.
(abbreviated as TRIM)

Tokyo Tatemono (75%)
Yasuda Real Estate (10%)
Taisei Corporation (10%)
Meiji Yasuda Life Insurance (5%)

1

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

2
3
4

JPR has established a portfolio that is focused on officeproperties in Tokyo, which feature growth potential, with urban
retail properties and office properties in regional cities tocomplement profitability.

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

Continuous internal growth through highoccupancy rate and upward revision of rents

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

1.

Properties from sponsor pipelines refer to properties acquired from sponsors, etc.
and properties acquired based on information provided by sponsors. Sponsors, etc.
represent the four sponsor companies of JPR, their affiliated companies and special
purpose companies (SPCs) in which the sponsors have made equity investment.
Ratio of properties from sponsor pipelines refers to the ratio of (planned) acquisition
price of properties from sponsor pipelines over the total (planned) acquisition price ofthe entire portfolio.

66 properties 467.5 bn. yen

A portfolio focused on office properties in
Tokyo

The average occupancy rate of the entire portfolio has stayed at
97% or higher since the 26th fiscal period ended December
2014, and JPR continued to negotiate for the upward revision ofrents.

5

Asset size
(After the asset replacement)

Ratio by asset(After the asset replacement)(Area)

Tokyo(Asset class)

Office85.0 %
77.6 %(planned) acquisition price and ratio
of properties from sponsor pipelines(After the asset replacement)

345.7 bn. yen 74.0 %Period-average Occupancy Rate

99.4%

(December 2020 Period)

LTV

40.6 %
Ratio of long-term, fixed interest rate debts

96.9%

Credit rating

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

3

JAPAN PRIME REALTY INVESTMENT CORPORATION

1. Summary of Financial Results

4

1. Summary of Financial
Results（million yen）

Operating revenue
Rental income-realestateOperating income

Ordinary income

Net income

Distribution per unit
（yen）

Financial Results for the 38th Fiscal Period and Operating forecasts

June 2020
PeriodResult16,363

8,927

8,013

7,277

December 2020
PeriodResult17,129

9,103

8,533

7,840

Period-on-period
comparison
Increase/
Decrease

+766

+176

+519

+562

Rate of
Change

+4.7%

+2.0%

+6.5%

+7.7%

Compared with
forecast
Increase/
Decrease

+433

+57

+432

+441

Rate of
Change

+2.6%

+0.6%

+5.3%

+6.0%

7,276

7,839

+562

+7.7%

+441

+6.0%

7,595

7,750*1

+155

+2.0%

+30

+0.4%

June
2021 Period
Forecast

December
2021 Period
Forecast

17,255

16,438+0.7%(period-on-period)-4.7%(period-on-period)

8,947

8,761

-1.7%

-2.1%
(period-on-period)(period-on-period)

8,712

7,843

+2.1%

-10.0%(period-on-period)(period-on-period)

8,020

7,082

+2.3%

-11.7%(period-on-period)(period-on-period)

8,020

7,082

+2.3%

-11.7%(period-on-period)(period-on-period)

7,550*1

7,550*2-2.6%-%(period-on-period)(period-on-period)*1 Gain on sale of real estate (Dec. ‘20 period: 414 million yen, Jun. ’21 period: 784 millionyen）is reserved internally (allocated to retained earnings)*2 Retained earnings (153 million yen) are applied to distribution5

1. Summary of Financial
Results

Fluctuation in Distribution per Unit

In the December 2020 period, distributions increased for a 14th consecutive period thanks partly to
external growth.
JPR focused on continuous external growth to make up for the slowdown in internal growth caused by theeffects of COVID-19.
Gain on sale of real estate is retained internally as a general rule and used to stabilize dividends.
Minus item

Plus item

Decrease in rent and common charge-163(move-in/ move-out)
Increase in rent and common charge +56(rent revision etc.)
Deterioration of balance of utilities-9
expenseDecrease in repairs and maintenance +125
expense
Retainedearnings

Decrease in rent and common charge-51(move-in/ move-out)+55
Increase in rent and common charge(rent revision etc.)
Improvement of balance of utilities expense +70
Decrease in repairs and maintenance expense +77

29Lack of previous+99
periodFor 38th period -47

DPU

433

432

Temporary
Gain onreduction ofsale
COVID-19 206 property

207

51

Reductionof large
tenantLack of previous+47
periodFor 39th period -47

DPU

818

818

46

Dec. ’20 (38th) period

Temporary
reduction of
188COVID-19

Move-outof large
tenant
+191
+17
+11
-14

Decrease in rent and common charge-90(move-in/ move-out)
Increase in rent and common charge+23(rent revision etc.)
Decrease in cancellation penalty income-63
and income equivalent to expense forrestoration
Improvement of balance of utilities+23
expenseIncrease in repairs and maintenance-32
expenseIncrease in brokerage fee-32

Lack of 39th period +47-7
For 40th period

DPU

Internal
growthExternal
growthSencity Bldg.
JPR Shinsaibashi West
Otemachi FCNT
Sold of JPR Hakata Bldg.
Jun. ’20

34

7,750

Internal
growth(37th) period

Others Retained
earnings

Others7,595

132（yen/unit）

0

Gain onsale
External property
growth73

Otemachi FCNT
+108
Sale of JPR Hakata Bldg. -35
Rise Arena Bldg. -188

Jun. ’21 (39th) period (forecast）

DPU

7,550

7,550

Reversal of
Retainedearnings

Internal
growthExternal
growth206
40

Temporary
reduction of
COVID-19

28

34

160

OthersSale of JPR Hakata Bldg. -28

Dec. ’21 (40th) period （forecast）

6

1. Summary of Financial
Results

Summary of Operating Results

Internal Growth

External Growth
ChangeDec. ’20 period(38th)

Increase or decrease

Occupancy rate
(period average)

99.4%-0.2%pt

Increase+11.3 mn.

Monthly
Decreaserent

yen*-35.8mn.

-21.5 mn.
yen

-35.7 mn.

Yen

Yen

IncreaseMonthly rate
Decrease
rent
rate

+8.4%
-28.1%+0.1%pt-18.8%pt

Rent gap-3.2%+1.6%pt

End of Dec. ’20(38th)

Asset
size

467.5 bn. yen

Financial Strategy
ChangeIncrease or decrease

LTV

40.6%

+1.0%pt

Average debt
cost
Averagematurity

0.76%-0.02%pt+10.3 bn.
Yen

Numberof＋1*66
Properties*65 properties after JPR Hakata Bldg. completed sale

Acquired and sold properties (Dec. ‘20 period)
Sold
Acquired

ChangeEnd of Dec. ’20(38th)

Increase or decrease

Ratio of long-term,
fixed interest ratedebts

4.6 years

-

96.9%

-3.1%pt

years

Business environment perception/ Outlook• Financing environment does not appear to have changed
dramatically due to COVID-19.
• Continue to conduct operations conservatively using long-*Of which reduction large tenants 34.6 million yen

term loans with fixed interest rates, in principle.

Business environment perception/ Outlook• The uncertainty created by the protracted COVID-19
pandemic, including the sudden surge in cases towards
the end of 2020, is dampening investment confidence inthe corporate sector and the office leasing market isentering a downward phase.
• Although the properties owned by JPR maintained highlevels of occupancy, contract cancellation notices haveincreased. In 2021, occupancy rates are expected to fall,reflecting delays in leasing activities in addition to plannedlarge-scale contract cancellations.
• Steady progress is being made with the upward revisionof rents, albeit at a slower pace.
• In the future, widespread vaccination will gradually easethe uncertainty, and office demand will also start torecover. However, vacancy rates in the Tokyo officemarket are likely to remain weak throughout 2021.
• Leverage the competitive edge of properties and proceed
carefully with leasing activities.

ESG
Otemachi FCNT
Acquisition price11.4 bn. yen

JPR Hakata Bldg.
Sold price 4.1 bn. yen
Expected gain on sale
1.2 bn. yen

Business environment perception/ Outlook• On the office investment market, it is still hard to acquire
properties, given the persistently high prices and limited
information about prime properties for sale.
• Continue to acquire (replace) properties throughsponsors’ pipelines and achieve both external growth andimprovement of the portfolio.
• Consider mainly offices, postponing hotel and retailproperty acquisitions for the time being.

GRESB
CDP’s climatechange program

Percentage of properties
with environmental
certification

second５Star consecutive year
B score (first participation)(up 5.3%pt, period-

65.5% on-period)

Business environment perception/ Outlook• The importance of environmental issues will increase
further both domestically and globally, with government
announcing that Japan will become carbon
neutral by 2050.
• Review materiality (material issues), set 2030 strategic
targets and also develop a new implementation
framework with newly established dedicated departments.
• Implement ambitious initiatives, including acquiring newenvironmental certifications.

1. JPR sold 35% of JPR Hakata Bldg. on December 24, 2020 and plans to sell the remaining 65% on March 29, 2021.The sale price and expected gain on sale are the total amounts.

7

1. Summary of Financial
Results

Impact of COVID-19

The impact of the declaration of a state of emergency such as support for tenants islimited but delays in leasing activities will lead to increased downtime
Status of Temporary Reductions, etc.

Status of Cancellations

・ Granted temporary rent reductions and payment holidays to tenants who compliedwith the calls for business restraint accompanying the declaration of a state of
emergency.
・ No office tenants had their rent temporarily reduced.
・ The declaration of a second state of emergency is likely to affect tenants,
especially bars and restaurants. The forecast for the Jun. ‘21 period factors in this
impact.
・ Made good progress collecting rent arrears from tenants who took payment
holidays.

（Impact by fiscal period）

Move-out spaces
Move-out spaces (Rise Arena Bldg.)
Move-out spaces (Kawasaki Dice, TSG)
Number of tenants（thousand ㎡）

Jun. ’20

Dec. ’20

Jun. ’21(forecast）

61

43

ー

Number of
responding

・ A steady performance was maintained in the Dec. ‘20 period but contract cancellations are
expected to increase both in terms of frequency and area vacated in the Jun. ‘21 period.
・ Excluding large-scale move-outs from Rise Arena Bldg., Kawasaki DICE Bldg. and Tokyo
Square Garden (TSG), which are not attributable to COVID-19, the frequency of moveouts will increase but the area vacated will not be much different from the historical
average⇒Small-scale contract cancellations are trending up
・ There will be 11 retail facility contract cancellations in the Jun. ‘21 period compared to 2 inthe Dec. ‘20 period.
・ Likewise, in the Dec. ‘21 period, the area vacated as a result of contract cancellations is
expected to be of a similar scale (previous period)

20（Number of tenants）

60

40
10
20

Total
amount of
responding

94 million yen

45 million yen

45 million yen
0Jun. '18

Dec. '18

Jun. '19

Dec. '19

Jun. '20 Dec. '20

Jun. '210Dec. '21 （period）（forecast） （forecast）

Classification of Temporary Reduced Tenant (until Dec. ’20)

17.7%
Services

4.5%
Bars &

restaurant
19.5%

・ Rent start downtime expanded due to increased free rent in the Jun. ‘21
period・ Contract start downtime is expected to increase due to leasing delays
・ Future occupancy assumptions are set conservatively

Other

Other
Services

Total
tenantreductions

13.5%

140
million yen

RetailRetail

58.4%

25.0%

Status of Leasing

5.8%

Average number of months (DT) to start contract
Average number of months (DT) to start rent

（months）

10

Numberor tenants

104

Bars &

5

restaurant
55.8%

0Jun. '18

Dec. '18

Jun. '19

Dec. '19

Jun. '20

Dec. '20

Jun. '21 （period）（forecast）

1. Tenant classifications are determined based on actual use, and commercial tenants include tenants of office buildings.

1. The figures for Jun. ‘21 and Dec. ‘21 periods of the cancellation status are expected values to reflect only
those with an agreement that will take effect in that period.

8

1. Summary of Financial
Results

Status and Outlook of Office Market

Status and Outlook of Office Market
Status of Dec. ’20 (Jul. to Dec.)
・Infections fell for a time during the summer of 2020.

Economic trends

・ The economy showed modest improvement, partly thanks togovernment measures such as the GoTo campaign.
・ There was a resurgence in cases towards the end of last year and asecond state of emergency was declared at the beginning of thisyear.

Outlook [JPR’s view]・ Small outbreaks are likely to occur intermittently even after the third
wave of infections comes to an end.
・ The pace of economic recovery will increase in the second half of2021 because widespread vaccination will lessen the impact of
COVID-19, and if Tokyo Olympics and Paralympics are held,
confidence will be boosted, and government economic stimulus canalso be expected.

・ Enterprises continued to adopt a wait-and-see attitude in face of the ・ The sense of uncertainty will gradually ease from the second half of2021 and office demand among enterprises is expected to start torecover.

uncertain economic outlook.
Demand・Demandin absolute terms is weak, despite a certain level oftrendsdemand for office expansion among strongly performing enterprises
and for BCP in response to COVID-19.

Officeleasing
marketVacancyrate

・ The vacancy rate rose from the summer due to a combination of the ・ The rise in the vacancy rate will gradually become more moderate,
emergence of secondary vacancies as a result of large supply ofreflecting less new supply and fewer contract cancellations.
office space in central Tokyo in 2020 when demand was shrinking
・ During 2021, the vacancy rate will remain weak but is expected toand move-outs or downscaling by poorly performing enterprises.
start to recover in the second half of 2022, when office demand
among enterprises starts to emerge.
・ The impact of large supply in 2023 needs to be monitored.

Rent
level

・ The level of new asking rents trended down as the vacancy raterose.

・ As the vacancy rate stops rising, the downward trend in new asking
rents will also gradually ease.

・ Downtime such as free-rent periods and periods of vacancy
increased.

・ Free-rent periods and periods of vacancy are envisaged to somedegree.

・ The impact on existing rents was minimal.

Recognition of current situation

Outlook [JPR’s view]

・ Many enterprises introduced remote working following thedeclaration of the first state of emergency.

Remote working

・ While various ways of working such as the establishment of satellite
offices, utilization of co-working space, and working from home, will
become the norm as part of BCP measures and workstyle reform,
・ Some poorly performing enterprises are taking the reduction in officethe office-based working style will also still be maintained.
users as an opportunity to downsize or integrate offices.
・ Many enterprises recognize that teleworking causes various issues
such as decreased business efficiency.

・ High spec buildings both in terms of location and the hard and soft
facilities they offer will be preferred.

9

1. Summary of Financial
Results

Status and Outlook of Office Market

Reference Data（office demand related）
Implementation of job cuts*1

Office area changes*3

Head office relocations/downsizing
due to COVID-19 measures or the adoption of telework*1

Plan to make in the
Already made future
3.5%(or making)）
5.6%

Increase

Decreased
1.3%
Plan to relocate
2.7%

Relocated

Spring '17
Autumn '17
Spring '18

Plan to decrease
3.3%

Have not madeand do not plan to

9.2
7.9
8.6
9.1
8.3
8.6
8.7
8.1
5.2

Autumn '16

1.3%

Autumn '18

No relocation,
No plans todecrease

90.9%

Spring '19
Autumn '19

91.5%

Not change

Spring '20
Autumn'20
020

Decrease

84.9
85.3
86.1
86.1
86.2
85.7
86.6
87.9
88.9
40

Not sure
3.2
2.0
2.2
2.7
2.7
3.1
2.8
2.7
4.7

60

2.8
4.8
3.2
2.1
2.8
2.6
1.9
1.4
1.2
（%）

80

100

Reference Data（remote working related）
Status of remote working implementation*2

Telework policies of enterprises
before and after vaccine rollout*4

Remote working productivity*4
How would you rate teleworking if productivity
when working at workplace is 100%?

Currently adopting

Never adopted

30.7%

43.8%

Less than 100% 64.7%
Entireaverage

20.1
13.3

84.1%
Adopted but now
stopped
25.5%

7.5
2.4
0.9 0.8 1.3

1Over 100% 35.2%

4

18.6

13.4
6.6 6.8
1

0.3

1.9

Encourage all
employees totelework
14.8%
Encourage some
employees totelework
19.8%

All employees
must come into
the their
workplace, in
principle
Before 26.7%

spreadUndecided
38.7%

Encourage all
employees totelework
10.9%

All employees
must come into
the their
workplace, in
principle
31.2%

Encourage some
employees toAftertelework
spread
14.6%

Undecided
43.4%*1. Source: TOKYO SHOKO RESEARCH, LTD. “11th COVID-19 Survey ” published December 17, 2020
*2. Source: TOKYO SHOKO RESEARCH, LTD. “10th COVID-19 Survey ” published November 25, 2020
*3. Source: XYMAX REAL ESTATE INSTITUTE Corporation “Metropolitan Areas Office Demand Survey Autumn 2020” published December 2, 2020
*4. Source: Persol Research Institute “4th Urgent Survey on the Effects of Telework due to COVID-19 Measures (Comprehensive Analysis)” published January 19, 2021”

10

1. Summary of Financial
Results

Growth Strategy

Growth Strategy

１ Maintain internal growth◼ The slowdown of the office leasing market
makes it difficult to achieve high internal
growth◼ Work steadily to maintain/improve rent levels

•
•
•
•

Leverage low LTV to

２ achieve external growth◼ Focus on property acquisitions using
sponsor pipeline◼ Pursue strategic asset replacement

•
•
•
•

costs at a
３ Keepreasonable level•

Conduct leasing activities carefully, without making any free rent or rent proposals
which are at odds with the market
Maintain and improve rent level through increased competitiveness that includes
continuous improvements in customer satisfaction and appropriate value enhancement
Continue to negotiate upward rent revisions with tenants especially where negative
rent gap exists
Increase NOI by reviewing property management and operation methods

Achieve continuous external growth by acquiring properties from sponsors
Work with the main sponsor to replace assets, thereby improving the quality of theportfolio and securing gain on sale of real estate (Gain on the sale of real estate isallocated to retained earnings, in principle)
Target prime office buildings and postpone acquisitions of retail properties and hotels
for the time being
Consider using excess cash in addition to debt finance to fund acquisitions

Make repair and value enhancement investments based on careful examination of
the timing and content

Dividend Stabilization Strategy
Use retained earnings(internal reserves)

・ The risk of a temporary decrease in distributions due to move-outs by large
tenants and other effects of the office market slowdown is a cause for concern
・ Use retained earnings (internal reserves) in the event that distributions
temporarily drop more than anticipated11

1. Summary of Financial
Results

Medium-term Target

Aim for medium-term target of 7,800 yen through continued implementation of growth strategies
Use retained earnings in the event that distributions temporarily drop more than anticipatedChange in Distribution per Unit and Medium-term Target

DPU（yen/unit）

Distributions are expected to drop more than anticipatedtemporarily due to protracted leasing activities following
contract cancellation by a large tenant in the Jun.’21 period

LTV→Reverse internal reserves to stabilize distributions

8,000

7,800

7,750
7,595
7,500

7,245
40.6
7,000

44

7,550

7,493

（%）

7,550

7,380

7,326

Seek to raise thelevel ofdistributions
through earlyleasing andexternal growth

40.8

40.9

40.6

Publicoffering

40.5

42

40

39.5

6,5000Jun. '18

Dec. '18

Jun. '19

Dec. '19

Jun. '20

Dec. '20

Jun. '21

Dec. '21（period）（forecast）（forecast）

38

Medium-term target

1. Distribution per unit as medium-term target is a management target set by TRIM, and there is no guarantee that the figure is achieved.

12

Memo

JAPAN PRIME REALTY INVESTMENT CORPORATION

2. Operational Status and Growth Strategy

14

Occupancy Status

2-1. Internal Strategy

Occupancy remained above 99% in the December 2020 period
Rate is expected to fall slightly due to delays in leasing activities but to be maintained at 98% in the June 2021
periodMajor Move-Ins/Move-Outs

Occupancy Rate and Move-Ins/Move-OutsMove-in area

98.4%

97.9%
（㎡）

99.2%

99.2%

99.5%

99.6%

Jun. ‘21
Move-out rate

98.6%

98.9%

99.5%

99.1%

1.5

1.6

2.7
0.8

1.0

0

-10,000-20,000-1.1-4.1

Dec. '17

Jun. '18

JPR Shinsaibashi West

-692

692

Rise Arena Bldg.

Dec. '18

-2.2

-1.7

Jun. '19

Dec. '19

-0.7

-1.3

Jun. '20

Dec. '20

Jun. '21-6,023

3

Yakuin Business Garden-1,300 -388 388

Shinjuku Square Tower-1,056 -484

-1,8391,145

Oval Court Ohsaki Mark West

-997

997

JPR Harajuku Bldg.

-757

210

Tokyo Square Garden

-736

39

-6

（㎡）

2,984

Kawasaki Dice Bldg.

-3（period）

1,635
848

6

0
-0.8

-1,635-848（%）

Jun. ‘21

Move-inShibadaimon Center Bldg.

97.3%

96.9%

1.4

JPR Sendagaya Bldg.

98.0%
98.3%

Dec. ‘20

Dec. ‘20

Move-out

99.4%

4.3

20,00010,00098.2%

Occupancy rate based on concluded contracts
Occupancy rate based on generated rents
Move-out area
Move-in rate

（period）（forecast）

Fiscal Period of Vacancy Space

Average Free Rent Period（㎡）（month）

15,0004

10,000
5,000
0

2
6,982

Dec. '17

5,787

Jun. '18

3,939

Dec. '18

6,559

Jun. '19

2,125

Dec. '19

1,646
Jun. '20

2.0

3,488

Dec. '20

Jun. '21 （period）

0

1.5

1.8

1.0

0.8

1.0

1.2

Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21 （period）（forecast）（forecast）

1. The figures for the occupancy rate for the Jun. ‘21 period are estimated based on assumptions by JPR regarding move-ins and move-outs becoming effective in the fiscal period.

15

Leasing Enhanced Real Estate2-1. Internal Strategy
Rise Arena Bldg.

Greater Tokyo

Tokyo Square Garden

OfficeDec. ‘20

Jan. ‘21

Jun. ‘21

Dec. ‘20

Jun. ‘21

100%

0%

49.5%

100%

87.７%

• Connecting directly to Higashi-Ikebukuro subway station, the building has
excellent transport links, and offers high-quality facilities, with a standard
floor area of more than 500 tsubo• In January 2021, the tenant which is leasing all office floors (4,769
tsubo/JPR’s equity interest: 1,822 tsubo) will move out.
• Plan to install LED lighting and renovate the common areas to achieve
upward revision of rent
• Already concluded contracts for 4.5 out of the 9 standard floors (6-14F),
achieving higher rent on tenant replacement• Aim to conclude contracts for all floors before the end of the year

Kawasaki Dice Bldg.

OfficeCentral Tokyo

Greater Tokyo• Directly connected to Kyobashi Station, this large-scale high-spec officebuilding has excellent transport links and a floor plate of more than
1,000 tsubo• A tenant leasing 2.5 floors (2,618 tsubo/JPR’s equity interest: 215
tsubo) will move out until May 2021
• Aim to find a new tenant before the end of the year, fully stressing its
location and high specifications

JPR Harajuku Bldg.

RetailOfficeCentral Tokyo

Dec. ‘20

Jun. ‘21

Dec. ‘20

Jan. ‘21

Jun. ‘21

100%

85.4%

100%

84.1%

88.5%

• In front of JR Kawasaki Station, this building is in an extremely busy location,
the route for passengers changing from the JR line to the Keikyu line
• A retail store tenant which leases one floor (915 tsubo/JPR’s equity interest:
475 tsubo) will move out in February 2021 and three bar & restaurant
tenants (155 tsubo/JPR’s equity interest: 80 tsubo) also plan to move out• Aim to conclude a contract for the one floor in the second half of this year

Oval Court Ohsaki Mark West

Central Tokyo• The building is located in the Jingumae area which is popular among
young people and is attracting a great deal of attention• Strengthen property’s competitiveness by renovating the entrance• Tenants will move out of one floor (165 tsubo) and a first-floor store (1block) in January 2021
• Aim to find tenants for all floors by around this summer

Shibadaimon Center Bldg.

OfficeDec. ‘20

May ‘21Jun. ‘21

100%

75.6%

100.0%• High-spec building located in the redeveloped Osaki area, with abundant
greenery in the vicinity• A tenant which leases one floor (301 tsubo) will move out in May 2021
• A new tenant has already been found without any period of vacancy.

Central Tokyo

OfficeDec. ‘20

Jun. ‘21

84.3%

100.0%• The building is located in the Hamamatsucho-Daimon area which ishome to many manufacturing enterprises and has excellent transport
links• A tenant which leases one floor (256 tsubo) moved out in July 2020
• Plans to install LED in the leased space and to renovate common areas• A new tenant for the floor has been found1. The figures for the occupancy rate for the Jun. ‘21 period are estimated based on assumptions by JPR regarding move-ins and move-outs becoming effective in the fiscal period.

16

Status of Rent

2-1. Internal Strategy

Monthly rent for the December 2020 period reduced due to the move-out of large tenants, however, rents
continued to trend upward
Ratio of rent revisions (% of total contracts)

Monthly Rent Revision Increase/ Decease
Rate of upward revision
Upward revision Upward revision(existing tenants)

21.1

Rate of increase in rent upontenant replacement
Downward revision(tenant replacement)

27.6
16.0

23.7

(existing tenant and tenant replacement)

18.9

22.4

30

18.2

20

(million yen)

Upward revision(%)

No change（period）

Dec. '18

48.1

Jun. '19

51.9

Dec. '19

47.7

50.4

1.5

10

40

7.4

7.6

7.5

9.0
20
3.7
10.0
-4.9

0

23.2
-7.7

7.2
7.4
-0.8

6.8

7.8

6.9

12.9

17.1

13.4

-3.7

-2.6

7.7
3.6
29.2
-0.0

Of which,
reduction of large
tenants -34.6

-20

0

6.7

3.6
7.6

17.4
-3.0

Jun. '20

47.6
49.4

56.5

0.5
2.9

43.5

0.0

-35.8
Dec. '20

32.9

65.7

1.4

-40
0

Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21（period）

20

40

60

80

100 (%)（forecast）

Status of Gap in Rent (Office/By fiscal period of rent renewal）

Area subject to rent renewal（thousand ㎡）（million yen）

200

+40
Decrease inlarge tenant

150

Higher than market range (new contract, etc.)

Within market range

Higher than market range (except for new contract)

+20

100

+0

50

-20

0

Lower than market rent

Gap in rents

3.2

▲
%
（period-on period
comparison +1.6%pt）

-40
Dec.
‘17
'17.12

Dec.
‘18
'18.6

Dec.
‘18
'18.12

Jun.
‘19
'19.6

Dec.
‘19
'19.12

'20.6
Jun.
‘20

Dec.
‘20 （period）'20.12

Jun. '21

Dec. '21

Jun. '22

1. Forecast of monthly rent increase/decrease for Jun. ‘21 period is sum total of upward or downward revisions and increases or decreases in rent upon tenant replacement.
2. Forecast of monthly rent increase/decrease for Jun. ‘21 period is estimates that reflect consents regarding move-ins and move-outs that will become effective in the fiscal period.

Dec. '22 （period）

17

Status of Retail Properties

2-1. Internal Strategy

JPR’s retail properties are situated in prime locations or in areas close to stations and with highcommercial potential

The ratio of bars & restaurants which tend to be affected by COVID-19 is limited at around 3%
Retail Portfolio

Average Occupancy Rate（Retail properties）

Type

Urban type

Station-front type

Characteristics

Urban retail properties situatedon prime locations in Tokyo andOsaka

Retail properties located in
front of stations near Tokyoand in major regional

Number ofproperties
Asset size

9 properties
58.5 billion yen

6 properties
46.1 billion yen

（%）

100.0

99.7

99.4

99.9

99.9

100.0

100.0

100.0
99.2

98.0
96.0
0
94.0

Dec. '17 Jun. '18 Dec. '18 Jun. '19 Dec. '19 Jun. '20 Dec. '20 Jun. '21（period）（forecast）

Status of Lease Contract (Retail properties, Space ratio)

Main Retail properties

Remaining contract
period 5 years more

Urban typeLess than
2 years 3.6%

9.0%

JPR Umeda Loft
Bldg.

JPR Shibuya
Tower Records Bldg.

JPR Ginza
Namiki-dori
Bldg.

Yurakucho
Ekimae Bldg.

(Yurakucho Itocia)

5.5%

Fixed rent +commission

2 to or more andless than 3years

33.6%

Type of rent

3 years or more andless than 5 years

53.9%

Fixed rent

FUNDES
Ueno

94.5%

Stationfront typeType of contract

Tenant sectors

Fixed term
building lease 12.5%

Kawasaki Dice Bldg.

Tanashi ASTA

1. Asset size is calculated based on acquisition price.

JPR
Musashikosugi
Bldg.

Housing Design
Center Kobe

Services 2.0%
Bars &
restaurants
2.9%
Ordinary building
lease(traditional lease)

87.5%

Other
3.1%

Retail92.0%

18

External Strategy

2-2. 内部成長戦略
2-2.
External Strategy

Aim to achieve continuous external growth by using the sponsor pipeline
2016

Properties
acquired

FUNDES Suidobashi

Sponsor’s
pipeline

Sponsor’s
pipeline

Sponsor’s
pipeline

3.25 billion yen

10.1 billion yen

18.4 billion yen

0.17 billion yen

Sponsor’s
pipeline

Sponsor’s
pipeline

5.75 billion yen

3.8 billion yen

3.75 billion yen 13.87 billion yen

Sponsor’s
pipeline

Sponsor’s
pipeline

11.4 billion yen

Gain on saleSponsors
supportreservedinternallyGain onsale ofAsset
replacement1.2 billionyenreservedinternally

Fukuoka Bldg.

Tokyo Tatemono
Kyobashi Bldg.

JPR Hakata Bldg.

Building age
23years

Building age
26 years

Building age
38 years

Building age
35 years

Properties
acquisition fromsponsors

Properties acquired
other than fromsponsors
121.7 billion yen

21.0%

Otemachi Financial City
North Tower

JPR Hakata Chuo Bldg.

（ Utilizing sponsor pipeline ）Properties acquired
based on information
provided by sponsors
98.2 billion yen

Sencity Bldg.

資産
資産
Asset
of 0.4
Sponsors
replacement
入替yen
入替billionsupportGain on saleAssetreplacement of 0.2 billion
yen reserved
internally■Continue strategic asset replacement

Utilize debt finance acquisition capacity of 39.1 billion yen (maximum
LTV of 45%) and free cash flow

26.0%

JPR Shinsaibashi
West

Sponsor’s
pipeline■Investigation of acquisitions through negotiated deals
•

2020

Tokyo
Shinagawa Canal Bldg.
Square Garden (Additional ownership） JPR Kojimachi Bldg. FUNDES Ueno

Sponsor’s
pipeline

Sponsors
support

Properties
sold

JPR Ginza
Namiki-dori Bldg.

2019

2017

247.4 billion yen
52.9％（Top 5 portfolio properties）
Property Name

billionyen

Tower
1 Otemachi(Land with Leasehold Interest)

36.0

2 Olinas Tower

31.3

3 Shinjuku Center Bldg. 21.0
Properties acquired using 4 Tokyo Square Garden
sponsor pipelines
5 Kanematsu Bldg.

74.0%

1. JPR makes decision based on circumstances at the time of acquisition.

All are sponsor pipeline
properties or sponsor
development properties

18.4
16.2

•
•

Create a strong portfolio through continuous asset replacement
Build up internal reserves (retained earnings) which will help stabilize
distributions, through the realization of unrealized gains
JPR• Improve portfolio quality(including reducing averagebuilding ages, enhancing earningpotential and improving location)• Build up internal reserves which
will help stabilize distributions,though the realization of
unrealized gains• Acquire prime properties at areasonable price

Strategic sales

Main sponsor(Tokyo Tatemono)• Tap into needs to acquireredevelopment properties

Asset
replacement

Acquisition ofprime properties• Step up property sales toinvestors• Expand group earning
opportunities bystrengthening fund businessincluding affiliated REITs

19

Asset Replacement in December 2020 Period

2-2. 内部成長戦略
2-2.
External Strategy
Acquired property

Sold property

JPR Hakata Bldg.

Otemachi Financial City North Tower（Sale Highlights ）Sold 35-year-old building which needed large-scale
repair work and potentially needed rebuilding in themedium and long term to the main sponsor
Acquisition price4.1 billion yen

Appraisal value

3.96 billion yen

Estimated gainon sale1.19 billion yen

Building age

35 years

Buyer

Tokyo Tatemono
Co., Ltd.

1. JPR Hakata Bldg. has sold 35% (sold price 1,435 million yen) of its stake on Dec. 24 ’20. and plans to sale the remaining 65% (sale price
2,665 million yen) on Mar. 29 ‘21.

Effect of replacement on portfolio（Acquisition Highlights）
JPR acquired a premium, large-scale high-rise office building
located in the Otemachi area of Tokyo, one of the leading financial
business districts in Japan, from the Main Sponsor.
Otemachi, Chiyoda-ku,
Acquisition
Location
11.4 billion yen
Tokyo
price
11.9 billion yen
Asset class
Office / Retail
Appraisal value（Unrealized gains
500 million yen）

NOI yield

2.7%

•

•

Creates strong portfolio by increasing ratio of Tokyo properties
and reducing average building age
Builds up internal reserves (retained earnings) which will help
stabilize distributions, by realizing unrealized gains
Before replacement

After replacement

Increase/
Decrease

Asset size

457.1 billion yen

465.6 billion yen+8.5 billion yen

Floors

B4F/35F

Ratio by Tokyo area

84.5％

85.4％

+0.9％pt

Total leasable
floor space

4,191.96㎡

Ration by Office

77.1％

77.5％

+0.4％pt

Occupancy
rate

97.5%

Average of buildingage(Mar. 31 ′21)

24.5 years

24.0 years▲0.5 years

Retained earnings

0.68 billion yen

Afterdepreciation
yield

2.3%

Building age

８ years

Acquisition
dateDec. 24 ‘20

SellerTokyo Tatemono
Co., Ltd.

Ownership
interest

5.7%

1. Figures for “Appraisal value” and “Occupancy rate” are as at time of acquisition, and “NOI yield” and “After-depreciation yield” are expected
yield at acquisition.

（Reserve for reduction entry）

per unit 719 yen

1.88 billion yen

per unit 1,970 yen+1.19 billion yen

per unit +1,251 yen

1. “Average of building age” is estimated average as of the end of March 2021. The average building age before replacement iscalculated on the assumption that replacement did not take place.

202-2. External Strategy

Main Sponsor Pipeline

Fully utilize sponsor pipeline to seek to expand acquisition opportunities
Medium-term Business Plan of Tokyo Tatemono(fiscal 2020-2024)

Properties owned by Tokyo Tatemono Co., Ltd.
in the vicinity of Tokyo Station

Expand property sales toFurther expand group AUM and earnings
opportunities
Balance of real estate for sale 124.5 billion

investors

yen (as of Sep. 30, 2020)

Key Strategies(excerpt)

Strengthen fund business

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

Tokyo Tatemono’s pipeline
Real estate for long-term ownership reclassified as real estate
for sale（Reclassification as real estate for sale） （JPR’s acquisitions）
End Dec. ’18: just under 20 bn. yen JPR Kojimachi Bldg., JPR Shinsaibashi WestEnd Dec. ‘19: just under 10 bn. yen OtemachiFinancial City North Tower

Real estate for sale developed as property for investors（JPR’s acquisitions）

FUNDES Suidobashi, FUNDES Ueno

Name

Completionyear

Otemachi Tower

2014

Otemachi Financial
City Grand Cube

2016

JA Building,
Keidanren Kaikan

2009

Otemachi Financial City
North Tower
Tokyotatemono
Takaracho Bldg.
Tokyo Tatemono No.
3 Takaracho Bldg.
Nihonbashi TI Bldg.
Tokyo Tatemono
Nihonbashi Bldg.
Nihonbashi First Bldg.

2012

Shin-gohukubashi Bldg.
Tokyo Tatemono
Yaesu Bldg.

1977

NTA Nihonbashi Bldg.

1991

1966
1971

NihoNihombashi
Mitsukoshi Main
Store

2012
2015
1994
2011

Tokyo Tatemono
Yaesu-sakuradori Bldg.

1974

Kyobashi YS Bldg.

1990

Empire Bldg.

2017

Daimaru Tokyo
Department StoreTokyo Sta.

MaruzenBook Store
NihoNihonbashi
Takashimaya
Department Store

Kyobashi Edogrand Bldg. 2016

Tokyo Tatemono’s main properties for investors
Asset class

Medium-sized
officeUrban compact
retail properties

Property name

Total floorarea (㎡)Completion(tentative）Kodenmacho project

Spring ‘22(Name to be determined）
Sapporo station area

Autumn ‘23(tentative）Shibaura project

Spring ‘24

FUNDES Gotanda

1,498㎡

Jul. ‘19

FUNDES Ginza

1,866㎡

Nov. ‘19

Fukuoka Bldg.

1990

Tokyo Square GardenTokyo Tatemono
Kyobashi Bldg.

2013
1981

Construction completion:
Up to and including 2000
2009 - 20142015 and thereafter

Yaesu
Book Center
Tokyo
Internation
al Forum

Yurakucho Mullion

Kanematsu
Bldg.

Yurakucho
ItociaKanematsu
Bldg. Annex
JR Keiyo Line

1. The balance of Tokyo Tatemono’s real estate for sale is the balance of the building business and also include assets not for acquisition by JPR such as logistics facilities.
2. For the properties shown in this slide other than those that are already owned by JPR, no specific negotiations for acquisition are underway with Tokyo Tatemono and JPR has no plans to acquire any of them at present.。
3. JPR owns the land with leasehold interest of “Otemachi Tower” and co-owns “OtemachiFinancial City North Tower“, “Tokyo Square Garden”, “Kanematsu Building”, “Kanematsu Building Annex” and “Yurakucho ITOCiA”.

21

2-3. Financial Strategy

Financial Status

Build strong financial base through lengthening of maturity and flattening of
repayment amount and conservative LTV control
Debt Procurement Results in the 38th Fiscal Period(short-term loans excepted)
Beforerefinancing

Funding

Average maturity

6.8 years

9.2 years+2.4 years

Average debt
interest rate

0.96%

0.54%

-0.41%pt

ChangeDiversification Status of Repayment Dates（100 million yen）

Investment corporation bonds

150

50

(Jun. ’20)

(Dec. ’20)

Interest-bearingdebt

187.0 billion

196.5 billion+9.5 billion

yen

yen

yen

LTV

39.5%

40.6%

+1.0%pt

Average maturity

4.6 years

4.6 years- years

Average debt
interest rate

0.78%

0.76%

-0.02%pt

Ratio of long-term,
fixed interest rate
debts

100.0%

96.9%-3.1%pt

Commitment limit

50

20
98 100105

Change

30

130

80 80

130
70 80

85
109100R&I

S&P

AA- （Stable）

A （Stable）

50 42

60

50

30

90
30

Status of Credit Rating（Long term issuer rating）

24.0 billion yen

60

Status of Interest-Bearing Debts
38th period

41.3 billion yen
approx. 20 billion yen

inc. free cash flow

Short-term loans payable

100

37th period

Cash and deposits

Long-term loans payable

100
71
40

35

40

0
（period）

Change in LTV(%)

45Control, aiming for maximum LTV of 40-45%

43 43.7

41

39
Dec '16

Debts acquisition capacity
39.1 billion yen

PublicOffering

PublicOffering

40.7

Jun '17

40.6

40.6

40.5

Dec '17

Jun '18

Dec '18

40.9

40.8

39.5

Jun '19

Dec '19

Jun '20

40.6
Dec '20（period）

1. ”Free cash flow” is the amount of cash and deposits which TRM judges to be available after deduction of distribution payments and an amountequivalent to lease deposits received. It includes 2.6 billion yen which is equivalent to proceeds from the sale of JPR Hakata Bldg. due to be paidin March 2021.

22

2-3. Financial Strategy

Diverse Status of Lenders (as of December 31, 2020)

Diversifying fund procurement sources with a lender formation comprising
34financial institutions and through issuance of investment corporation bonds
Sumitomo Mitsui Trust Bank, Ltd
Mitsui Sumitomo Insurance
Company, Ltd
Hiroshima Bank, Ltd.

1.0

The Hyakugo Bank, Ltd.
Tokio Marine & Nichido Fire
Insurance
The Chiba Bank, Ltd.

1.0
1.0

Investment

Daido Life Insurance Company

1.0

corporation bonds

Mizuho Bank, Ltd

7th series of bonds

4.5

1.0

32.5

30.0

18th series of bonds

2.0

19th series of bonds

5.0

The Daishi Hokuetsu Bank, Ltd

1.0
1.0

（billion yen）

1.0

The 77 Bank, Ltd.

1.0

The Kiyo Bank, Ltd.

1.0

（Breakdown of investment corporation bonds）

Name（Of which short-term loans 6）

21st series of bonds

4.0

The Bank of Tokyo-

22nd series of bonds

3.0

Mitsubishi UFJ, Ltd.

23rd series of bonds
24th series of bonds(Green bond)25th series of bonds(Green bond)

3.0

NTT FINANCE CORPORATION

1.0

Resona Bank, Ltd.

2.0

Yamaguchi Bank, Ltd.

2.0

The Hachijuni Bank, Ltd

2.0

Nippon Life Insurance Company

2.0

Corporation

Sompo Japan Insurance Inc.
National Mutual Insurance
Federation of Agricultural
Cooperatives

2.0

12.5

The Iyo Bank, Ltd

2.0

The Chugoku Bank, Ltd

The Nishi-Nippon City Bank, Ltd.

4.0

The Shinkumi Federation Bank

4.0

Sumitomo Life Insurance Company

4.0
4.2

Sumitomo Mitsui Banking

ShinseiBank, Ltd.
10.0
Shinkin Central Bank 7.0
Aozora Bank, Ltd. 5.4
The Bank of Fukuoka, Ltd. 6.0

5.0
6.0

（Status of commitment line）

10.9

3.0
3.0

21.0

Development Bank of Japan, Inc.

2.0

Taiyo Life Insurance Company

Meiji Yasuda Life Insurance Company

Interest-bearing
debt balance
196.5 billion yen

AmountThe Norinchukin Bank 7.0
Mizuho Trust & Banking Co., Ltd. 7.0

LenderCreditlimit

Mizuho Bank, Ltd.

4.0

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Aozora Bank, Ltd

4.0

Mizuho Trust & Banking Co, Ltd.

4.0

4.0
4.0

Resona Bank, Ltd

4.0

Total

24.0

23

Highlights

2-3. Sustainability■ Achieved "5 Stars" the Highest Ranking in GRESB■ Participation in the CDP’s Climate Change Program
JPR has received the “B”
designation in the 2020
Carbon Disclosure Project
Climate Change Program.

Acquisition of the highest ranking of “5Stars” in GRESB, for 2 consecutive years.

■ Materiality of JPR and TRIM
Materiality■ Acquisition of Environmental Certification
Ratio (left axis)（%）

Total area (right axis)

80
53.4

60
40

54.4

60.1

Portfolio greening（thousand ㎡）

65.5

600

Countering climate change

400
34
200

20
0
Dec. '18
2018.120Jun. ‘19
2019.6

Dec. ‘19
2019.12Jun. ‘20
2020.6Dec.
‘20 （period）
2020.12Strategy
Raising the ratio of
properties acquired withgreen certification
Improving theenvironmental rating ofreal estate

SDGs

Improving coverage overstandard evaluation

Reduction of CO２

Achieving 30% reduction
in CO２ per floor area(compared with the 2017
level)

Efficient use of water
resources

Achieving 10% reduction
in water use per floor area

Strengthening climatechange risk management

Building industry-leadingclimate change risk
response capabilities

Working with tenants toaddress climate change

Expansion of green leaseagreement

Improving satisfaction by
Improving tenant satisfaction
Improving overall tenant
providing software andwith safety, security andsatisfaction (safety,
hardware services (safety,
comfortsecurity and comfort)
security and comfort)
Creating a rewarding
workplace environment

Strengthening human
Fostering professionals
resources through training
who support corporate
and self-development
growthsupportBuild an efficient businessstructure■ Infection Prevention Measures by Asset Management
Company• Encouragement of telecommuting and staggered
commuting• Promotion of IT utilization such as web
conferencing• Distribution of masks and wearing of masks
including in the office• Installation of disinfectant solution and thoroughsocial distancing• Installation of acrylic partition (meeting room)2030 Target
Green certificationacquisition rate of 80% or
moreStrengthening corporate
governanceImprovement of businessefficiency and process

Realization of physical,
Maintaining and improving
mental health and workphysical and mental healthlife balance
Providing an environment
Creating a rewarding
where each person canworkplace environment
play active roles
Implementation ofIndustry-leadingtransparent management
information disclosure
though active IR
Active dialogue withinvestors
Promoting dialogue withindividual investors
Improving ESG overall
strength

Obtaining industry-leading
ESG valuation

Enhancing strong corporate Maintaining strong
governancecorporate governance
Strengthening risk
management

Industry-leading risk
management

24

JAPAN PRIME REALTY INVESTMENT CORPORATION

3. Financial Results and Forecasts of Financial Results

25

Overview of Financial Results for the 38th Fiscal Period (Dec. ’20)
(period-on-period comparison)

3. Financial Results andOperating Forecasts

Results of the 38th fiscal period ended Dec. ‘20: DPU: 7,750 yen (up 155 yen period-on-period)
Full operation of properties acquired in the previous period contributed
JPR absorbed the impact of the reduction of large tenants and achieved a dividend increase for the 14th
consecutive period.
ItemJun. '20

37th Period
Operating revenue
16,363
Rental revenue
16,363Gain on sale of property
Operating expense
8,350
Revenue
Expenses related to rent business
7,436
and profit
General and adminisutrative expenses
914(million
Operating income
8,013
yen)
Non-operating income
51
Non-operating expenses
787
Ordinary income
7,277
Net income
7,276
Reserve (million yen) Transferred from reserve
DPU (yen) (per unit)
7,595
Number of units outstanding

958,250

Dec. '20
38th Period
17,12916,714
414
8,596
7,611
985
8,533
46
739
7,840
7,839
414
7,750
958,250

Change
+766
+351
+414
+246
+175
+71
+519
-4
-47
+562
+562
+414
+155

Item
Rental revenue
Rental revenue
Rents and common charge

Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc.
Income equivalent to expense forrestoration⑥

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes

Insurance premiums-

Repairs and maintenanceRental revenue

Property management fees

① ［Rent and common charge］Existing properties decreased due to the reduction of large tenants

Management association accounts② ［Incidental income］Increased due to seasonal factors

Depreciation
Other expenses related torent business

Expenses related to rent business③ ［Utilities expense］Increased due to seasonal factors
Balance of utilities expense improved due to lower fuel adjustment unit price（up 67 million yen）

NOI

④ ［Property and other taxes］ Increased due to the lack of property and other taxes refundthat occurred in the previous period⑤ ［Property management fees］Decrease in rising rent reward

Rental income-real estate

General and administrative expenses, non-operating revenue and expenses⑥［Non-operating expense］Decrease in reduction in financial costs and lack of loss on retirementof non-current assets in the previous period

NOI yield (book value)

After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

37th Period 38th Period Change
16,363
15,674
13,520
1,783
370
689
620
9
21
37
7,436
615
712
2,358
26
602
331
573
2,027
187
10,954
5.2%
8,927
4.2%
99.6%

16,714
15,788
13,616
1,793
378
926
833
15
37
40
7,611
630
841
2,387
26
558
306
585
2,085
190
11,188
5.2%
9,103
4.2%
99.4%

+351
+113
+96
+9
+8
+237
+213
+6
+15
+2
+175
+14
+128
+29
+0
-44
-25
+11
+57
+2
+233
- %pt
+176
- %pt

Acquired
Existing
properties※1 properties※2

+293
+231
+229
+2
+61
+60
+1
+96
+1
+43
+0
+0
+14
+4
+6
+23
+1
+220

+58
-118
-133
+9
+5
+176
+153
+6
+15
+0
+79
+12
+85
+28
+0
-58
-29
+5
+34
+0
+13

+197

-21

①

②

③
④

⑤

-0.2%pt※1 Acquired properties are calculated for increase or decrease based on JPR Shinsaibashi West (former
Minamisemba Bldg.) and Sencity Bldg. acquired in the 37th period.
※2 The figures are calculated for increase or decrease due to properties other than the above. Otemachi
Financial City North Tower, which was acquired in the 38th period, is included in the “existing properties”
because it has a minor impact on the results for the 38th period. (The main factors for increase/decrease of existing properties are described in ① to ⑤.)26

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 38th Fiscal Period(Dec. ’20) (period-on-period comparison)

Result of the 38th fiscal period ended Dec. ‘20
Total assets: 484 billion yen, total unitholders’ equity per unit: 267,570 yen
Item
Current Asset
Cash and deposits (including trust)
Other current asset

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

Deferred assets
Investment corporaton bond issuance costs

Investment unit issuance expenses

BalanceSheet(millionyen)

Total assets
Current liabilities
Short-term loans payable
Current portion of long-term loans payable

Other current liabilities

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

Total liabilities
Unitholders' capital
SurplusReserve for reduction entry
Unappropriated retained earnings

Total net assets

Jun. 30 '20

Dec. 31 '20

37th Period
40,71940,100619
432,310
419,822
11,805
682
157
119
37
473,186
27,80820,820
6,988
189,540
139,700
26,50023,340217,348247,860
7,977
689
7,287
255,83838th Period
41,813
41,396417
442,576
429,955
11,805
815
183
153
30
484,573
33,3676,000
19,8207,547
194,805
138,200
32,50024,105228,173
247,860
8,539
689
7,849
256,399

Change+1,093+1,295-201+10,266+10,133
-0
+133
+26
+33
-7
+11,386+5,559+6,000-1,000+559+5,265-1,500+6,000+765+10,824
+561
+561
+561

Increase or decrease in cash and deposits
Item

ChangeNet cash provided by operating activities+11,402

Income before income taxes+7,840Depreciation and amortization+2,085

Other, net+1,476

Net cash provided by investing activities
Purchase of property, plant and equipment

Other, net-12,285-13,028+743

Net cash provided by financing activities+2,178Proceeds from lisbilities+20,455

Repayment of liabilities-11,000-7,277

Dividends paid

Total cash and deposits+1,295

Increase or decrease in noncurrent assets
Item

ChangeAcquire properties+10,529

Capital expenditures+1,654

Depreciation-2,085

OthersTotal noncurrent assets+167+10,266

Increase or decrease in liabilities
Item

New procurement

Repayment/
redemption

Balance at end ofcurrent period

ChangeShort-term loans payable

6,000

-

6,000

Long-term loans payable

8,500

11,000

158,020-2,500Investment corporation bonds

6,000

-

32,500+6,00020,50011,000196,520+9,500Total liabilities+6,00027

3. Financial Results andOperating Forecasts

Overview of Financial Results for the 38th Fiscal Period(Dec. ’20) (compared with forecast)

Results of the 38th fiscal period ended Dec. ‘20
DPU compared with the forecast : up 30 yen
Gain on sale of property of JPR Hakata Bldg. was reserved internally (allocated to retained earnings) for stable
operation and distribution in the future
Dec. '20

Dec. '20

38th Period(forecast)

38th Period(actual)ChangeOperating expense
Revenue
Expenses related to rent businessand profit
Selling, general and adminisutrative expenses(million
Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Transferred from reserve
DPU (yen) (per unit)

16,695
16,695
8,595
7,649
945
8,100
41
743
7,399
7,398
7,720

17,12916,714
414
8,596
7,611
985
8,533
46
739
7,840
7,839
414
7,750

+433
+19
+414
+1
-38
+39
+432
+5
-3
+441
+441
+414
+30

Number of units outstanding (unit)

958,250

958,250-

Item
Operating revenue
Rental revenue
Gain on sale of property

Item

38th Period(forecast)

38th Period(actual)16,69515,75013,576
1,793
380
945
877
10
18
38
7,649
632
907
2,386
26
532
302
589
2,086
186
11,132
5.1%
9,045
4.2%
99.1%

16,714
15,788
13,616
1,793
378
926
833
15
37
40
7,611
630
841
2,387
26
558
306
585
2,085
190
11,188
5.2%
9,103
4.2%
99.4%

Rental revenue
Rental revenue④

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

Other variable income
Expenses related to rent businessOutsourcing fees
Utilities expenses
Property and other taxes
Insurance premiums
Repairs and maintenanceRental revenue

Property management fees

① ［Rent and common charge］Increased mainly due to rent revisions and progress ofleasing activities② ［Incidental income］Decreased due to the COVID-19 pandemic, it did not recover to the initial forecast

Management association accounts

Depreciation
Other expenses related to rent business

Expenses related to rent business③ ［Utilities expense］Decreased due to the COVID-19 pandemic, it did not recover to the initial forecast
Balance of utilities expenses improved due to lower fuel adjustment unit price(up 22 million yen)

Gain on sale of property④ ［Gain on sale of property］Appropriated partial sale of JPR Hakata Bldg. (beneficiary interest 35%)NOINOI yield (book value)
Rental income-real estate
After-depreciation (book value)
Occupancy rate based on cncluded contract(period average)

Change
+19
+37
+39
-0
-1
-18
-44
+4
+19
+1
-38
-2
-66
+1
+0
+26
+3
-4
-0
+4
+56

①

②

③

+0.1%pt+57- %pt+0.3%pt28

3. Financial Results andOperating Forecasts

Forecasts of Financial Results for the 39th Fiscal Period (Jun.
‘21) (compared with 38th period)

Forecast of the 39th fiscal period ending Jun. ‘21
DPU: 7,550 yen (down 200 yen from 38th period (Dec. ‘20))
The replacement assets are contributing, but DPU is expected to decrease for cancellation of large tenant, etc.
Item

Dec. '20

Jun. '21

38th Period 39th Period

Item

Change(forecast)

Operating revenue
Rental revenue
Operating expense
Revenue
Expenses related to rent businessand profit
General and administrative expenses(million
Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Reserve (million yen) Transferred from reserve
DPU (yen) (per unit)

17,12916,714
414
8,596
7,611
985
8,533
46
739
7,840
7,839
414
7,750

17,255
16,470
784
8,543
7,523
1,019
8,712
53
745
8,020
8,020
784
7,550

+125
-244
+369
-53
-88
+34
+179
+7
+5
+180
+180
+370
-200

Number of units outstanding (unit)

958,250

958,250-

Gain on sale of property

Rental revenue
Rental revenue
Rents and common charge⑤

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

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

Rental revenue① ［Rent and common charge］Revenue of existing properties is expected to decrease due toreduction of large tenants, etc.
② ［Incidental income］ Likely to decrease mainly due to seasonal factors

Expenses related to rent business③ ［Utilities expense］Likely to increase mainly due to seasonal factors, utilities expenses are
expected to improve④ ［Property and other taxes］ Increase in property and other taxes on acquired properties inthe 37th period
It is assumed that the property and other taxes for the 39th and40th periods do not expect to increase due to 2021 large packageof tax revisions

Gain on sale of property⑤ ［Gain on sale of property］Appropriate partial sale of JPR Hakata Bldg. (beneficiary interest
65%)Management association accounts

Depreciation
Other expenses related to rent business

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

38th Period

39 th Period(forecast)

16,714
15,788
13,616
1,793
378
926
833
15
37
40
7,611
630
841
2,387
26
558
306
585
2,085
190
11,188
5.2%
9,103
4.2%
99.4%

16,47015,591
13,432
1,793
365
879
778
40
20
40
7,523
635
809
2,444
26
415
299
595
2,098
197
11,045
5.1%
8,947
4.1%
98.0%

Change
-244
-197
-184
+0
-12
-46
-55
+25
-17
+0
-88
+5
-31
+56
-0
-143
-6
+10
+12
+7
-142

Replaced *1
properties

Existing *2
properties

+107
+94
+99
-5
+13
+20
-8
+1
+37
+7
+35
+20
+0
-22
-3
-2
+2
+67

-351
-291
-283
+0
-7
-59
-75
+25
-8
-0
-125
-1
-66
+36
-0
-120
-2
+10
+15
+4
-210

+69

-225

①

②

③
④

-0.1%pt-155-0.1%pt-1.4%pt*1 The increase/decrease in the replacement of the following assets is calculated.
The 38th period: Acquitison of Otemachi Financial City North Tower, sale of JPR Hakata Bldg.
（beneficiary interest 35%）
The 39th period：Sale of JPR Hakata Bldg.（beneficiary interest 65%）
*2 Increase/decrease for existing properties, excluding the above, is calculated (the major
factors behind the increase/decrease for existing properties are described in ① to ④).

29Forecasts of Financial Results for the 40th Fiscal Period (Dec. ‘21)
(compared with forecast 39th period (Jun. ‘21))

3. Financial Results andOperating Forecasts

Forecast of the 40th fiscal period ending Dec. ‘21
DPU: 7,550yen (even from 39th period (Jun. ‘21) forecast)
Delays in leasing activities due to COVID-19 will continue to have an impact
DPU will be secured 7,550 yen though the reversal of internal reserves
Item
Operating revenue
Rental revenue
Gain on sale of property

Operating expense
Revenue
Expenses related to rent businessand profit
General and administrative expenses(million
Operating incomeyen)
Non-operating income
Non-operating expenses
Ordinary income
Net income
Transferredfrom reserve
Reserve(million yen)Transferre from deferral of gains
on sales property

DPU (yen) (per unit)
Number of units outstanding

Jun. '21

Dec. '21

39th Period

40th Period

Item

Change(forecast)(forecast)

17,255
16,470
784
8,543
7,523
1,019
8,712
53
745
8,020
8,020
784

16,43816,438
8,594
7,677
917
7,843
3
764
7,082
7,082
-

-816
-32
-784
+51
+153
-102
-868
-50
+18
-937
-937
-784

-

153

+153

7,550

7,550

-

958,250

958,250-

Rental revenue
Rental revenue
Rents and common charge
Land rent
Other fixed income
Other rental revenue
Incidental income
Cancellation penalty, etc⑤

Rental revenue① ［Rent and common charge］ Delays in leasing activities due to COVID-19 will continue to havean impact②［Incidental income］Likely to increase chiefly due to seasonal factors

Expenses related to rent business③［Utilities expense］ Use will decrease mainly due to seasonal factors and the balance of utilities④［Other expenses related to rent business］Brokerage fees, etc. will increase

Non-operating income and expense⑤ ［Non-operating revenue］ Revenue will decrease in the absence of recording of settlement on
management association accounts

Income equivalent to expense for restoration
to original condition

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

Depreciation
Other expenses related to rent business

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

39th Period(forecast)

40th Period(forecast)

Change16,47015,591
13,432
1,793
365
879
778
40
20
40
7,523
635
809
2,444
26
415
299
595
2,098
197
11,045
5.1%
8,947
4.1%
98.0%

16,43815,517
13,357
1,793
366
921
883
37
7,677
637
891
2,431
27
445
294
602
2,110
235
10,872
4.9%
8,761
4.0%
98.0%

-32
-73
-74
+0
+41
+105
-40
-20
-2
+153
+2
+81
-12
+0
+30
-5
+6
+12
+38
-173
-0.2%pt-186-0.1%pt-%pt

Replaced *1
properties

Existing *2
properties

-55
-52
-48
-4
-2
-2
-27
-3
-3
-6
-0
-1
-1
-11
-0
-39

+23
-21
-25
+4
+44
+107
-40
-20
-2
+181
+5
+85
-6
+0
+31
-4
+6
+24
+38
-134

-27

-158

①

②

③

④

*1 The increase/decrease due to JPR Hakata Bldg. (beneficiary interest 65%) which is due to be sold in
the 39th fiscal period is calculated.
*2 Increase/decrease for existing properties, excluding the above, is calculated (the major factors
behind the increase/decrease for existing properties are described in ① to ④).

30

3. Financial Results andOperating Forecasts

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

36th Period
Item37th Period

38th Period(Dec. '19)

Change(Jun. '20)

Change(Dec. '20)

Change16,00515,081
12,939Land rent
1,774
Other fixed income
368
Other rental revenue (variable income)924
incidental income
799
Cancellation penalty, etc.
21
62
Other variable income
40
Expenses related to rent business (excluding depreciation)
5,564
Rental businessOutsourcing fees609
profits
Utilities expenses
866
Property and other taxes
2,335(million yen)
Insurance premiums
25
Repairs and maintenance
610
Property management fees
299
Management association accounts
570
Other expenses related to rent business
247
NOI
10,441
Depreciation
1,973
Expenses related to rent business 7,538
Rental income-real estate（a）
8,467
Capital expenditures
1,582
NCF
8,858
Gain on sale of real estate（b）
Gain or loss on sale ofproperties (million yen)
Loss on sale of real estate（c）
Rental income-real estate, etc. (million yen, a+b-c）
8,467

2.0%
1.5%
1.7%
2.7%

16,363
15,674
13,520
1,783
370
689
620
9
21
37
5,408
615
712
2,358
26
602
331
573
187
10,954
2,027
7,436
8,927
1,380
9,574
8,927

2.2%
3.9%
4.5%
0.5%

16,714
15,788
13,616
1,793
378
926
833
15
37
40
5,526
630
841
2,387
26
558
306
585
190
11,188
2,085
7,611
9,103
1,654
9,534
414
9,518

2.1%
0.7%
0.7%
0.5%

Operating revenue

Rental revenue (fixed income)Rents and common charge

10.3%
17.0%

Income ecquivalent to expense for restoration to original condition

3.4%
2.7%
10.7%
-0.6%
5.4%

1.3%
0.4%
2.6%
1.5%
19.5%
-1.4%

-3.3%

-25.4%-22.5%-2.8%
1.0%-17.8%
1.0%
-1.3%

4.9%
2.7%
-1.4%
5.4%
-12.8%
8.1%

5.4%

34.5%
34.4%

2.2%
2.4%
18.0%
1.2%
-7.3%

2.1%
2.8%
2.4%
2.0%
19.8%
-0.4%

6.6%

39th Period(Jun. '21)
(forecast)
16,47015,591
13,432
1,793
365
879
778
40
20
40
5,425
635
809
2,444
26
415
299
595
197
11,045
2,098
7,523
8,947
1,508
9,537
784
9,731

Change

-1.5%
-1.2%
-1.4%
0.0%
-5.1%
-6.6%

-1.8%
0.8%
-3.7%
2.4%
-25.6%

-1.3%
0.6%
-1.2%
-1.7%
-8.8%
0.0%

2.2%

40th Period(Dec. '21)
(forecast)
16,43815,517
13,357
1,793
366
921
883
37
5,566
637
891
2,431
27
445
294
602
235
10,872
2,110
7,677
8,761
1,766
9,105
8,761

Change

-0.2%
-0.5%
-0.6%
0.0%
4.7%
13.5%

2.6%
0.3%
10.1%
-0.5%
7.2%

-1.6%
0.6%
2.0%
-2.1%
17.1%
-4.5%

-10.0%

31

3. Financial Results andOperating Forecasts

Change in Rental Business Revenue

Change in Rental
Business Profit

Rental revenue for the Jun. ‘21 period is expected to fall approx. 190 million yen (period-on-period)
Rental revenue for the Dec. ‘21 period is expected to fall approx. 70 million yen (period-on-period)

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

+49

Lack of the 37th period +94
For the 38th period-45

Acquisition +241
-2
SaleJun. ’20(37th) period

Dec. ’20 (38th) period

-315

+51

-0

Lack of the 38th period
For the 39th period

+45
-45

-435

-48

+22

15,517
OthersSale ofproperty

Temporary
reduction by
COVID-19+348

Revisions,
etc.

-12

Move
-ins

+106

Rents andcommon charge -74

OthersAcquisition& saleMove-outof majortenant-181+154

Temporary
reduction by
COVID-19

Acquisition& sale

+17

Move
-outs

+120 -171 +56

-198

+239
Temporary
reduction by
COVID-19

Revisions,
etc.

Move
-outs

Move
-ins

15,674

Others15,788

Revisions,etc.

Rents andcommon charge+96

15,591Move-outs

Rents andcommon charge -184

Reductionof large
tenant（million yen）

Plus item

Move
-ins

Rent revenue+0+38

Lack of the 39th period
For the 40th period+45-6Acquisition +205
-99
Sale

Jun. ’21 (39th) period (forecast）

Dec. ’21 (40th) period (forecast）

32

JAPAN PRIME REALTY INVESTMENT CORPORATION

4. Appendix

33

4. Appendix

Fund Summary
33rd Period(Jun. 2018)

34th Period(Dec. 2018)35th Period(Jun. 2019)36th Period(Dec. 2019)37th Period(Jun. 2020)

38th Period(Dec. 2020)(total assets)

40.6%

40.5%

40.9%

40.8%

39.5%

40.6%

(unrealized gains andlosses)

34.9%

34.2%

33.9%

32.9%

32.2%

33.2%

(acquisition value)

4.7%

4.7%

4.8%

4.7%

4.9%

4.9%

(book value)

4.9%

5.0%

5.1%

5.0%

5.2%

5.2%

(appraisal value)

4.2%

4.1%

4.1%

4.0%

4.1%

4.1%

Afterdepreciationyield(acquisition value)

3.8%

3.8%

3.9%

3.8%

4.0%

4.0%

(book value)

4.0%

4.0%

4.1%

4.1%

4.2%

4.2%

(appraisal value)

3.4%

3.4%

3.3%

3.2%

3.4%

3.4%

Implied cap
rate

NOI yield

3.7%

3.7%

3.3%

3.4%

4.6%

4.3%

After-depreciation yield

3.0%

3.0%

2.7%

2.7%

3.7%

3.5%

FFO

8,632 million yen

8,707 million yen

8,776 million yen

8,888 million yen

9,341 million yen

9,510 million yen

AFFO

7,485 million yen

7,581 million yen

7,451 million yen

7,305 million yen

7,961 million yen

7,855 million yen

FFO per unit

9,352 yen

9,433 yen

9,508 yen

9,630 yen

9,748 yen

9,924 yenEPS7,243 yen

7,324 yen

7,818 yen

7,491 yen

7,593 yen

8,181 yen

Cash distribution per unit

7,245 yen

7,326 yen

7,380 yen

7,493 yen

7,595 yen

7,750 yen

3.5%

3.5%

3.0%

3.1%

4.6%

4.5%

LTV

NOI yield

Dividend yield
ROE

5.6%

5.7%

6.0%

5.8%

5.7%

6.1%

308 yen308 yen

746 yen

746 yen719 yen

1,152 yen

Net asset per unit

258,546 yen

258,626 yen

259,118 yen

259,230 yen

266,984 yen

267,570 yen

NAV per unit
Investment unit price329,845 yen

341,007 yen

353,795 yen

368,917 yen

371,053 yen

372,725 yen

416,500 yen

423,000 yen

490,500 yen

488,000 yen

329,000 yen

346,500 yen

NAV multiple

1.3 times

1.2 times

1.4 times

1.3 times

0.9 times

0.9 times

PBR

1.6 times

1.6 times

1.9 times

1.9 times

1.2 times

1.3 times

PER

28.7 times

28.9 times

31.4 times

32.6 times

21.7 times

21.2 times

FFO multiple

22.3 times

22.4 times

25.8 times

25.3 times

16.9 times

17.5 times

53.5%

53.4%

52.9%

52.8%

54.1%

52.9%

（FFO）

77.5%

77.7%

77.6%

77.8%

77.9%

78.1%

（AFFO）

89.3%

89.2%

91.4%

94.7%

91.4%

94.5%

Reserve for reduction entry per unit

(immediately before the ex-right date)

Unitholder’s equity ratio
Pay out ratio

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

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

10.
11.
12.

PER (price earnings ratio) = Investment unit price / EPS (annualized, most recent result x 2)
FFO multiple = Investment unit price / FFO per unit (annualized, most recent result x 2)
Unitholder’s equity ratio = Net assets + total assets

13.
14.
15.

FFO payout ratio = Total cash distributions / FFO
AFFO payout ratio = Total cash distributions / AFFO
Reserve for reduction entry indicates the figure calculated by adding or subtracting the amounts brought
forward or reversed in the relevant fiscal period to or from the balance at the end of the fiscal period.

34

4. Appendix

Portfolio■ Asset Size (based on acquisition price, 100million yen）, Average age of building
Office properties
in Tokyo10.5 11.0

Office properties
in Other Cities

12.0 12.2 12.4

Average age of building
築年数

Retail properties

12.7 12.8 13.1 13.2

14.0

13.0 13.5

15.0 15.2 14.7

2,751 2,806

15.4 15.5

2,994

16.3 16.8

18.3
17.5 18.0 18.0
3,809

3,106

3,312

3,919 3,986

18.8 19.3

19.8 20.3

21.5
20.8 21.3 21.3 21.0

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

4,214

22.0 22.5 22.5

23.0

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

23.7 23.8

4,571 4,675

Breakdown by areaand by asset class(as of Dec. 31, 2020)

3,415 3,415 3,449

Office properties inTokyo

318.9 billion yen

2,453 2,519

1,636
1,257
921

1,796

1,976 2,026

2,092

2,224

Office properties in
Other Cities

1,396

43.8 billion yen

945

Retail properties

104.7 billion yen
120
110
100
90.0.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

1

2
'02

3

4
'03

5

6

7

'04

8
'05

9

10
'06

11

12

13

'07

14

15

'08

16

17

'09

18
'10

19

20

21

'11

22
'12

23

24

25

'13

26
'14

27

28

29

'15

30
'16

31

32
'17

33

34

35

'18

36
'19

37

38 （period）'20（year）■ Every Kind of Ratio
Ratio by Asset Class

Ratio by Area

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

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

Medium-sized
Retailproperties(3,000 m2 to less than
10,000 m2)

Other Cities

15.0%

22.4%
Portfolio management
standards
70 - 90%
for office properties

29.2%

Portfolio management
standards
80 - 90% for Tokyo

Greater Tokyo
Office30.1%
properties

77.6%

Large

Central Tokyo

55.0%(10,000 m2 to less than
30,000 m2)

22.2%

Very large(30,000 m2 or more)

48.6%

Ratio by Rent Zone
(Office Properties in Central Tokyo, Ratio of Acquisition Price)

Less than 15
thousand yen

16.0%

15 to less than 20
thousand yen

27.1%

Ratio by Contract Type(Office Properties, Area Ratio)

30 thousand yen
more

Fixed-term lease
contract

18.1%

14.7%

25 to lessthan 30
thousand yen

11.7%
20 to less than 25
thousand yen

27.0%

Ordinary
lease
contract

85.3%

35

4. Appendix

Diversification of Tenants (as of December 31, 2020)■ Ratio of Tenant Occupancy■ 20 Largest Tenants (by property; based on end tenants)• The number of office tenants other than the sponsors, etc. withtenant occupancy of 1% or more is only 3 (combined occupancy:3.5%) (excluding property comprising land with leasehold interest).

Category(No. of tenants)• Many of the retail tenants have long-term lease contracts, and thepossibility for them to cancel is rather small.
Retail tenantswith 1% or more

26.9%

Less than 1%

Sponsors, etc.
with 1% or more
Other tenants 1.6%
with 1% or more

Retail tenantswith 1% or more
(8 companies)

Sponsors, etc.
with 1% or more
(1 company)
Other tenantswith 1% or more
(3 companies)■ Ratio by Tenant’s Industry(Office Properties, Area Ratio)
Medical and Welfare
Transportation 3.5%

1.4%

Other
その他
0.8%

Public Services 3.8%
Construction 7.5%

Services

24.1%

Less than 1%(845 companies)

Real Estate

9.7%
Information andCommunications

Wholesale and Retail

11.0%
Finance andManufacturing
Insurance

11.3%

11.1%

15.7%

Occupying property

ABC Development Corporation

Housing Design Center Kobe

35,444.13

7.1

Seiyu GK

Tanashi ASTA

31,121.71

6.2

Ito-Yokado Co., Ltd.

JPR Musashikosugi Bldg.

19,740.95

4.0

The LOFT, Co., Ltd.

JPR Umeda Loft Bldg.

18,586.97

4.0

9,558.51

1.9

8,076.85

1.6

Olympic Group Corporation

Tower Records Japan Inc.

3.5%

68.1%

Ratio of
Leased space
occupancy(㎡)(%)

TenantMusashiurawa Shopping
SquareJPR Shibuya Tower Records
Bldg.

A company

Cupo-la Main Bldg.

5,963.00

1.2

B companyMusashiurawa Shopping Square

5,285.40

1.1

Tokyo Prime Stage Inc.

The Otemachi Tower(land with Leasehold Interest

7,875.50

1.6

C company

Yakuin Business Garden

6,029.57

1.2

D company

Rise Arena Bldg.

6,023.39

1.2

E company

Olinas Tower

5,263.77

1.1

F company

JPR Nagoya Fusimi Bldg.

4,904.64

1.0

G company

Sompo Japan Sendai Bldg.

4,379.30

0.9

H company

Olinas Tower

4,255.56

0.9

I company

Shinjuku Square Tower

4,242.48

0.9

J company

Gotanda First Bldg.

4,234.29

0.9

K company

Niigata Ekinan Center Bldg.

4,078.97

0.8

L company

Omiya Prime East

4,005.05

0.8

M company

MS Shibaura Bldg.

3,922.74

0.8

1. “Ratio of occupancy” is rounded off to the nearest specified unit.

36

4. Appendix

Move-Ins and Move-Outs of Tenants (as of December 31, 2020)■ Breakdown and Changes in Move-Ins and Move-Outs(Move-in/move-out spaces by area and asset class: m2)

Move-Ins

Move-Outs(Move-ins)‐(move-out)

2,503-4,152-1,649

Office properties inGreater Tokyo

793

-881

-87

Office properties in
Other Cities

1,365-1,213

152

0

-174

-174

4,662

-6,421-1,759Total■ Reasons for move-ins and move-outsNewestablishment
or expansion

Eviction, etc.

41%

27%

Move-ins
22

Downsizing/
Cost reduction
5%
14%

Better locationor building

Better locationor buildingNew
establishment
or expansion
4%
20%

Moving within thesame building

401

Shinjuku Square Tower

-484

0

BYGS Shinjuku Bldg.

-466

262

Shinjuku Center Bldg.

-50

50

JPR Sendagaya Bldg.

-1,635

Ginza Sanwa Bldg.

-151

0

Science Plaza - Yonbancho Plaza

-113

113

Shibadaimon Center Bldg.

-848

0

Tokyo Square Garden

039

FUNDES Suidoubashi

-174

0

JPR Chiba Bldg.

-111

111

JPR Yokohama Nihon Odori Bldg.

-168

168

Shinyokohama 2nd Center Bldg.

-161

0

Tachikawa Business Center Bldg.

-90

90

Yume-ooka Office Tower

-145

258

Olinas Tower

-32

32

JPR Yokohama Bldg.

-169

84

Sencity Bldg.

046

JPR Hakata Bldg.

-72

141

Sompo Japan Wakayama Bldg.

083

Tenjin 121 Bldg.

-59

59

Yakuin Business Garden

-388

388

JPR Shinsaibashi West

-692

692

4%

Downscaling
Cost reduction

4%

14%

-401

Moving within the
Eviction, etc.
same building
8%

Consolidation

60%

Move-outs
25

Move-ins

Move-outs

Kanematsu Bldg.

Net
Increase/Decrease

Office properties inCentral Tokyo

Retail properties■ Move-In/Move-Out Spaces by Property
（㎡）

1,635

37

4. Appendix

Yields (as of December 31, 2020)■ Yields by Area and by Asset Class(based on book value)

Central Tokyo(NOI yield)（%）

10■ NOI Yield by Property (based on book value)

Circle size = portfolio asset size (book value)
Center of circle = NOI yield

6.9%

Kanematsu Bldg.

510

Shin-Kojimachi Bldg.

4.3%

Portfolio average
5.2%

4.9%

MS Shibaura Bldg.
Gotanda First Bldg.
JPR Ichigaya Bldg.

BYGS Shinjuku Tower

0

Minami Azabu Bldg.

(After-depreciation yield)（%）

10

Shinagawa Canal Bldg.
Rokubancho Bldg.

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

JPR Harajuku Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.

OfficeOfficeOfficeRetailproperties in properties in properties inCentral Tokyo Greater Tokyo Other Cities properties

5

5.0%

0

Science Plaza-Yonbancho Plaza

Tokyo Square Garden

4.1%

Portfolio average
4.2%(land with leasehold Interest)

Shibadaimon Center Building

5.1%

3.7%

Ginza Sanwa Bldg.
The Otemachi Tower

JPR Kojimachi Bldg.
Otemachi Financial City North Tower
JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
JPR Ginza Namiki-dori Building
FUNDS Suidobashi
Average of Central Tokyo

Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower

8.8
4.9
5.3
3.4
3.9
5.5
5.1
5.2
6.1
2.8
3.1
3.5
5.2
5.6
3.0
4.2
6.1
4.8
3.1
3.2
2.9
3.1
4.2
4.2

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

8.2

Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.

10

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

10.1
8.6
8.2
7.2
7.0
7.1
6.1
4.5
8.3
5.9
9.4
8.8
4.4
6.3
5.6
4.3
6.5
9.4

Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.

3.6

6.8

JPR Hakata Bldg.
JPR Naha Bldg.

9.2

Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Nagoya Fushimi Bldg.

4.8

8.7
7.1

Yakuin Business Garden
JPR Shinsaibashi Bldg.

3.5

JPR Shinsaibashi WestJPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Average of Other Cities

15

6.9
7.1
7.3

JPR Yokohama Nihon Odori Bldg.

3.7

Oval Court Ohsaki Mark West
Shinjuku Square Tower

5

JPR Chiba Bldg.

6.8
5.7
6.7
5.7
6.4
6.4

JPR Ningyo-cho Bldg.

015Arca East Bldg.

3.6

Kanematsu Bldg. Annex

JPR Crest Takebashi Bldg.

5

（%）

（%）

0

OfficeOfficeproperties in
OfficeGreater Tokyo properties in Retailproperties in
Other Cities
properties
Central Tokyo

6.7%

GreaterTokyo and Other Cities
東京周辺部及び地方

4.0

11.3
11.0

8.5

5.6

6.1
4.8
6.1

38

4. Appendix

Occupancy Rate and Rent

■ Change in Occupancy Rate and Rents
Dec. 2017(32nd period)

Jun. 2018(33rd period)

Dec. 2018(34th period)

Jun. 2019(35th period)

Dec. 2019(36th period)

Jun. 2020(37th period)

Dec. 2020(38th period)

97.8

97.6

98.8

98.8

99.2

99.4

99.1

97.1

95.8

97.8

98.1

98.3

99.3

98.7

17,626

17,85917,98018,177

18,47718,801

18,977

20,74820,882

21,053

21,45921,83322,18322,313

16,88817,134

17,233

17,24017,403

18,13918,196

12,322

13,032

13,14913,375

13,562

13,72013,912

Gap in rent（%）

-3.1

-3.2

-4.1

-5.1

-6.9

-4.8

-3.2

Occupancy rate based on concluded
contracts (period average),%Occupancy rate based on generated
rents (period average),%

99.7

99.4

99.9

99.9

100.0

100.0

100.0

99.6

99.2

99.4

99.8

99.9

100.0

100.0

Item

RetailOfficeOccupancy rate based on concluded
contracts (period average),%Occupancy rate based on generated
rents (period average),%

Average rent (entire area),yen
Average rent (central Tokyo),
yen
Average rent (greater Tokyo),
yen
Average rent (other cities),yen■ Leased Area by Rent Level/Ratio of Contracts
with Upward Rent Revision (Contracts renewed Dec. ’20 period)■ Status of Rent revision, Rent Through Tenant Replacement
and Contribution Rate (Dec. ‘20)
Item
Rent revision subtotal
Upward revision of rent

Number ofcontracts

Area
(m2)

Area
ratio(%)

Increase/
Decrease(millionyen)

Increase/
Decreaseratio (%)

143

91.6

95.2

-26.9

-6.4

47

22.6

23.6

+7.6

+6.7

Downward revision of
rent
Neither upward or
downward revision ofrent
Tenant replacement
subtotal

2

33.6

34.9

-34.6

-29.1

94

35.3

36.7

-

-

26

4.6

4.8

+2.4

+8.8

Increase throughtenant replacement

20

3.5

3.7

+3.6

+18.2

Decrease throughtenant replacements

6

1.0

1.1

-1.1

169

96.2

100.0

-24.5

Total (Rent revision +Tenant replacement)

Area(thousandm2)

Area ratio(%)

Ratio ofcontractswith upwardrevision (%)

Less than market rent

22.5

65.0

50.7

Within market rent

6.8

19.8

20.0

Market rent more

5.2

15.2

21.4

Item

■ Leased Area by Rent Level(Contracts renewed Jun. ‘21 period - Dec. ’22 period)

Item

Area (thousand m2)

Area ratio (%)

Less than market rent

130.4

46.3

-13.9

Market rent

80.9

28.8

-5.4

Market rent more

70.1

24.9

39

4. Appendix

Example of construction works

Increase competitiveness of properties through improvement and value enhancement of common areas
JPR Harajuku Bldg.
• The building is now 31 years old, whilst along Meiji Dori, which thebuilding fronts onto, redevelopment projects are underway and new or
renovated buildings are noticeable.
• Improved the entrance and elevator hall to increase competitivenesscompared with competing buildings in the surrounding area.

Entrance

JPR Naha Bldg.
• Improved the competitiveness of this 29-year-old outdated building bygenerally improving the common areas including the external walls,
entrance, courtyard, rest areas and plumbing works• New tenants have been found for vacancies and building will be fully
occupied from April 2021

Exterior

Elevator hall

Exterior wall

Restroom

Entrance

Courtyard

Elevator hall40

4. Appendix

Appraisal Value (as of December 31, 2020)

Appraisal Value and Unrealized Gains

Status of Change in Appraisal Value➢ Although the ratio of unrealized gains dropped slightly due to new property
acquisitions, unrealized gains remained at a high level

Appraisal value

Unrealized gains

Ratio of unrealized gains➢ The appraisal value increased for some properties due to the revisionof the property tax increase（Appraisal Value）（Direct Cap Rate）（number of property）（number of property）

Jun. ‘20 Dec. ‘20

Jun. ‘20 Dec. ‘20

549.9 billion yen

108.1 billion yen

24.5%

Increase

23

34

Lowering

1

0(up 11.3 billion yen from37th period (Jun. ‘20))(down 1.1 billion yen from37th period (Jun. ‘20))(down 0.3%pt from 37th
period (Jun. ‘20))

Same

16

20

Same

63

65

Decrease

26

12

Rising1

1

Changes in unrealized gains and losses(100 mn. yen)
1,200

(%)

Unrealized gains and losses（left axis）
Ratio of unrealized gains and losses（right axis）

108.1 billion yen

30

1,000

24.5% 20

800
600
400

10

200
0

0

-200
-400
Jun. '02

Dec. '04

Dec. '06

Dec. '08

Dec. '10

Dec. '12

Dec. '14

Dec. '16

Dec. '18-10
Dec. '20 (period)41

4. Appendix

Appraisal Value by Property (as of December 31, 2020)

1. Direct cap indicates the capitalization rate that serves as the standard for calculating the value estimated by income
approach based on the direct capitalization method.
2. DCF discount rate and DCF terminal cap indicate the period income discount rate and the terminal capitalization rate thatserve as the standard for calculating the value estimated by income approach based on the discounted cash flow (DCF)
method.

3. Changes for properties acquired in the Dec. ‘20 period are changes compared with figures which are based on the appraisal
values of these properties at acquisition (Otemachi Financial City North Tower: as of November 1, 2020).

424. Appendix

ESG of JPR■ Corporate philosophy of TRIM

■ Materiality of JPR and TRIM
Materiality

TRIM provides value to all stakeholders, including customers,

Portfolio greening

employees and society, by rendering professional real estate investment
management services with sincerity and a sense of responsibility.

■ Sustainability Policy
Based on its corporate philosophy of working with integrity and acommitment to responsibilities, TRIM is resolved to contribute to thesustainable development of society and the investment managementbusiness through discussion and cooperation with its stakeholders(including investors and tenants), while aiming to maximize value for JPR's
unitholders.
1. Initiatives on Behalf of Tenants
We will work with integrity and responsibility in responding to tenants,
and endeavor to provide them with new and distinct values as well as
enhancing their satisfaction.
2. Initiatives on Behalf of the Environment
Recognizing the importance of addressing environmental issues, we will
aim to reduce the environmental load by managing the assets owned by
JPR.
・We will promote energy saving and the reduction of greenhouse gas
emissions.
・We will endeavor for the effective use of water resources and work on
the "3Rs" (reuse, reduce and recycle) of waste.
・We will strive to proactively disclose information on environmental issues.
3. Initiatives on Behalf of Local Communities
We will work to coordinate with local communities by managing theassets owned by JPR, in an effort to contribute to enhancing the brandvalue of the entire area in which such assets are located.
4. Initiatives on Behalf of the Employees
We will respect each of our employees to realize an employee-friendly
workplace, helping them to enhance their skills in their specialties.
5. Initiatives on Behalf of the Society
We will abide by laws and regulations as well as the rules of society, andwill conduct business operations with a focus on transparency andobjectivity while holding on to our high moral standards.

Countering climatechangeStrategy2030 Target

SDGs

Raising the ratio ofGreen certification
properties with green acquisition rate ofcertification
80% or more
Improving the
Improving coverage
environmental rating over standardof real estateevaluation
Achieve 30%
reduction in CO２ perfloor area (comparedwith the 2017 level)
Achieving 10%
in water
Efficient use of water reduction
use per floor area
resources(compared with the2017 level)industryStrengthening climate Building
leading climatechange riskchangerisk
responsemanagement
capabilities
Reduction of CO２

Working with tenants Expansion of green
to address climatelease agreementchangeImproving satisfaction Improving overall
Improving tenantby providing software
satisfaction
satisfaction with safety, and hardware services tenantsecurity andsecurity and comfort(safety, security and (safety,
comfort)comfort)Strengthening human Fostering
Creating a rewarding
resources throughprofessionals who
workplace environment training and selfsupport corporate
development support growth
Improvement of
Building an efficientbusiness efficiency
business structure
and process

Realization ofphysical, mental
health and work-lifebalanceanCreating a rewarding Providing
environment where
workplaceeach person can playenvironment
an active role
Implementation ofIndustry-leading
Strengthening corporate transparent
governancemanagement though information
disclosure
active IR
Maintaining andimproving physicaland mental health

Active dialogue withinvestors
Promoting dialogue
with individual
investors
industryImproving ESG overall Obtaining
leading ESG
strengthvaluation
Maintaining a strong
Enhancing a strong
corporate governance corporate
governance
Strengthening risk
management

Industry-leading risk
management434. Appendix

Environment■ Energy Performance■ Acquisition of environmental certification

Managing energy saving efficiency of properties by setting portfolio
standard
千(GJ/year)

Energy consumption data comparison

20,000（office/total floor area less than 10,000㎡）

15,000Total area (right axis)（thousand m2 ）

80
53.4

60

Buildings withroom forimprovement

10,000

Ratio (left axis)

（％）

40

54.4

65.5

60.1

400
34

200

20
High efficiency
energy savingbuildings

5,000

0
0

2,000

4,000

6,000

8,000

0
Dec. '18
10,000（Floor area
㎡ corresponding toownership）

Jun. '19

Systematically implement refurbishment for highly energy-efficientfacilities(Change in refurbishment work for highly energy-efficient facilities)
500

LED construction

300
200

100

310
256

227
185
130

123

★★★★★

7 properties★★★★

8 properties★★★

1 property【DBJ Green Building Certification】

368

339
258
211

Jun. '20

Work on air condition units
414

400

Dec. '190Dec. '20（month year）【CASBEE for Building Certification】■ Construction Works for Reducing Environmental Load（million yen）

600

105

125

152

233

182
119

88

0

★★★★★

2 properties★★★★

3 properties★★★

7 properties★★

2 properties★★★

1 property【BELS Certification】

Jun.'17 Dec.'17 Jun.'18 Dec.'18 Jun.'19 Dec.'19 Jun.'20 Dec.'20 Jun.'21（period）（forecast）
1. Properties with environmental certification are as of the end of Dec. 2020.

44

4. Appendix

Environment/ Society■ Green Bonds
The second issue was implemented to promote dialogue with ESG
investors, provide investment opportunities and contribute to thedevelopment of the green finance market.
Name

Issue
amount（millionyen）

Twenty Fifth Series ofUnsecured Investment
Corporation Bonds（Green bond）

6,000

Maturity date

BondperiodCouponrate

Nov. 26,2030

10 years

0.51％■ Disaster Initiatives
Seeking to further strengthen resilience in light of the mega-disasters inrecent years(Actions currently being taken)• Continuously conducting monitoring using
portfolio hazard map• Assessing latest risks in areas in which
properties are located and seeking tostrengthen facilities accordingly• Conducting regular onsite assessments ofdisaster-prevention equipment at each
property• Sharing disaster risks with site managers,
sharing current issues to be addressed, etc.
and issuing instructions on actions to be takenin the future■ Infection Prevention measures by Asset Management
Company• Encouragement of telecommuting and staggered
commuting• Daily health check• Promotion of IT utilization such as web
conferencing• Distribution of masks and wearing of masks,
including in the office• Installation of disinfectant solution and thoroughsocial distancing• Installation of acrylic partition (meeting room)■ Initiatives for TRIM employees• The Tokyo Tatemono Group, the main sponsor, has publishedits health management declaration and is implementing a
range of initiatives.
• TRIM was recognized as a Blue-Chip Health-Oriented
Company and awarded the Silver Certificate for Blue Chip
Health-Oriented Companies.

Portfolio hazard map(Tokyo area)

1. The hazard map was created by TRIM based on the Hazard Map Portal Site of Ministry ofLand, Infrastructure, Transport and Tourism.

•

Conduct regular employee satisfaction surveys to improve
the working environment, etc.

•

Introduced an employee stock purchase plan (ESPP) to
promote mutual interests between JPR unitholders and
TRIM’s employees.

•

Enhanced professional development such as leadershiptraining

45

4. Appendix

Governance■ JPR’s Corporate Governance■ TRIM’s Corporate GovernanceCriteria for appointing investment corporation officers andRemuneration etc.
•••

Decision-making process for property acquisitions

None of the grounds for disqualification stipulated in the laws concerning investment trusts
and investment corporations
Officers are appointed by means of a resolution of the General Meeting of Unitholders.
The remuneration for executive officers and supervising officers is stipulated in theinvestment corporation regulations as the amount decided by the Board of Directors (up toa maximum of 500,000 yen per month for each executive officer and 400,000 yen permonth for each supervising officer).

(Asset-linked fee)Management fee 2(Revenue-linked fee)Management fee 3(Cash distribution-linked fee)

Remuneration（Dec. ’20）

Share

Decision-making based on stringent processes(Interested parties: Sponsors companies and their parent company es,
subsidiaries and affiliates)

Total acquisition price×0.05％

228 million yen

27.5%

Total revenue×1.2%

201 million yen

24.2%

Distributable base amount
×3.8%×Rate of fluctuation of
distributable base amount perunit

338 million yen

40.7%

Property value×0.5%

64 million yen

7.7%Management fees 4/5(Acquisition/Merger fee)

Acquisition

Management fee 1

Calculation of Compensation’

Concludeagreement

Item

TRIM s Board of
Directors

Employing a management fee system that matches unitholder’sinterests and benefits of the asset management company

Decision making
on acquisition
over certain
amountAsset Management Fee

Investment Subcommittee• Supervising officers may be directors of corporations other than those indicated above, buthave no conflict of interest with JPR at those and the above positions.
• Executive Officer Yoshihiro Jozaki does not receive remuneration from JPR.

’

Final decision on
acquisition

16,500－Due diligence
subcommittee

Representative Partner ofNobuhisa Kusanagi OfficeCompliance Committee
JPR s Board of
Directors

4,200

Prior review /approval oftransaction withrelated parties－

Due diligence

Nobuhisa Kusanagi Accountants' Co.
Ernst & Young
ShinNihon LLC

Investment subcommittee

Independent
Auditor（thousand yen）

Group Representative Partner of
Gyosei Certified Public Tax &Supervising Officer

Decision on
acquisition policy

Partner Attorney, Spring
Partners

Compliance subcommittee

Masato Denawa

Review,screening

Yoshihiro Jozaki

President and CEO
Tokyo Realty Investment
Management, Inc.

Fee (Dec. ‘20)

Invest management
department

Executive Officer

Other Current
Assignments

Name

Proposal,planning

Position

The following procedures are taken for cases of transactions with interested parties:• An outside attorney is appointed as a special member of the Compliance
Committee and examines and verifies the adequacy and rationality of transactions
at the Committee.
• Upon implementing the approved transactions, approval by JPR’s board of
directors, comprising directors who are independent from the shareholders of
TRIM, must be obtained in advance.

• Acquisition of properties or assets from interested parties• Sale of properties or assets to interested parties• Consignment of property management to interested parties• Brokerage or agency by interested parties for transactions• Placement of orders for construction works (costing over 10 million yen)
to interested parties• Leasing of properties to interested parties(Sale fee)46

4. Appendix

Unitholders (as of December 31, 2020)■ Number of Units by Unitholder Type■ Top Unitholders(958,250 units in total)

Securities
companies
28,572
3%

Individuals
35,655
4%

Rank

Foreign

Name

Number of
Owned
Units

Share
(%)

1

Custody Bank of Japan, Ltd. (Trust Account)

238,06224.8

2

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

147,160

15.4

3

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

42,363

4.4

4

Custody Bank of Japan, Ltd.
(Securities Investment Trust Account)

33,021

3.4

5Tokyo Tatemono Co., Ltd.

29,300

3.1

6Kawasaki Gakuen

25,000

2.6

7

Meiji Yasuda Life Insurance Company

24,0002.5

8SSBTC CLIENT OMNIBUS ACCOUNT

15,230

1.6

9Japan Securities Finance Co., Ltd.

12,980

1.4

10

STATE STREET BANK WEST CLIENT－TREATY
505234

11,519

1.2

Total

578,635

60.4

investors

175,702
18%
Other domestic
corporation
83,7589%Financial
institutions
634,563
66%
Of which, investment
Trusts incorporating
JPR units
348,90236%■ Number of Unitholders by Unitholder Type(10,946 unitholders in total)

Other
domestic
corporation
236
2%
Financial
institutions
178
2%

Foreigninvestors
291
3%

Securities
companies
24
0%

Individuals
10,21793%

47

4. Appendix

Investment Unit Price and Distribution per Unit

■Changes in Unit Price
日経平均株価(指数化)
Nikkei stock average (indexation)

JPR
(yen)

600,000

400,000

200,000

0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6

'08/6

'09/6

'10/6

'11/6

'12/6

'13/6

'14/6

'15/6

'16/6

'17/6

'18/6

'19/6

'20/6 (year/month)(year/month)■Changes in JPR Dividend Yield
10y JGB yield
10年国債利回り

JPR

(%)

10.0
8.0
6.0
4.0
2.0
0.0
(2.0)
0
'02/6

'03/6

'04/6

'05/6

'06/6

'07/6

■Changes in cash distribution per unit
Cash distribution per unit (yen)(yen)

6,912 6,873

5,738 6,081

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

6,933 6,770

5,680 5,611 5,876

7,595 7,750
7,048 7,213 7,223 7,245 7,326 7,380 7,493
6,430 6,093 6,031 6,006 6,150 6,351 6,419 6,588 6,756

3,731
2,545

0

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

Jun. ’02

Dec. ’02

Jun. ’03

Jun. ‘03

Jun. ’04

Dec. ’04

Jun. ’05

Dec. ’05

Jun. ’06

10th

11th

Dec. ’06 Jun. ’07

13th

14th

15th

16th

17th

18th

19th

Dec. ’07 Jun. ’08

12th

Dec. ’08

Jun. ’09

Dec. ’09

Jun. ’10

Dec. ’10

Jun. ’11 Dec. ‘11

20th

22nd

23rd

24th

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

35th

36th

37th

38th

Jun. ’12 Dec. ’12

Jun. ’13

Dec. ’13

Jun. ’14 Dec. ’14

Jun. ’15

Dec. ’15

Jun. ’16

Dec. ‘16

Jun. ’17

Dec. ’17

Jun. ’18

Dec. ’18

Jun. ’19

Dec. ’19

Jun. ’20

Dec.’ 20

21st

（period）

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

48

4. Appendix

Asset Manager■Summary of Asset Manager■Sponsors（as of December 31, 2020）（as of December 31, 2020）

Shareholding
ratio

No. of seconded
staff fromsponsors

Tokyo Tatemono

75%

8名

Yasuda Real Estate

10%－

Yoshihiro Jozaki

Taisei Corporation

10%－

Directors

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

Meiji Yasuda Life Insurance5%－

Number of Officers

39

Name

Tokyo Realty Investment Management, Inc. (TRIM)

Address

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

Date of Foundation

April 28, 2000

Paid-in Capital

350 million yen

Business Description

Asset management for investment corporation

President and CEO■Organization Chart（as of January 31, 2021）

Name■Sponsors Support

Shareholder’s Meeting
Auditors

No.

Board of Directors
President & CEO

Compliance OfficeFinancial Division

Personnel support through dispatching personnel to TRIM and othermeasures2

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

3

Supply of properties and provision on information on property acquisition

4

Fund procurement support including funding through debt financeCorporate Planning /Administration Division

Research Grp.

Financial Grp.

Planning Grp.

Investment Grp.

IR Grp.

General Administration Grp.

Asset Management 1Grp.

Sustainability Grp.

Fund Management andAccounting Grp.

Asset Management 2Grp.

1
Compliance Committee

Investment Committee

Investment Management Division

Summary of sponsor’s support

Asset Management 3Grp.
Asset Engineering Grp.

49

4. Appendix

Office Property Leasing Market■ Changes in New Supply/Demand Area, Leasable Floor Area and Vacancy Rate

■ Changes in the average rent of Tokyo CBDs

( Tokyo CBDs )New supply

Net increase inleasable floor area

Vacancy rate

New demand(yen/tsubo)（right axis）

Class A Bldg.

Class B Bldg.

Class C Bldg.

45,000（Vacancy rate: right axis, Others: left axis, New supply and new demand indicate actual number）

35,000

270
270

(%)

（forecast）(thousand tsubo)

25,00014
15,0002002-2020
Average of new supply

5,000

11

210

2021-2024
Average of new supply

year)

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

170

8

150

■ Changes in the vacancy rate of Tokyo CBDs
5.30

90

Dec. '06 Dec. '08 Dec. '10 Dec. '12 Dec. '14 Dec. '16 Dec. '18 Dec. '20 (month/

4.03

70

3.61

4.49

3.12

4.71

(pt)

4.98

4.72

5

12%

Class A Bldg.

Class B Bldg.

Class C Bldg.

10%
8%

1.88

30

2

1.55

0
-30
-30

0
2015

2016

2017

2018

2019

2020

2021

2022

2023

-1

2024 （year）

1. Actual results of the vacancy rate, leasable floor area and occupied area through December 2020 are based on the Office Report (Tokyo CBDs)
by Miki Shoji Co., Ltd. New supply, new demand and loss areas as well as the leasable floor area and vacancy rate in 2020 and thereafter havebeen estimated based on surveys and simulations conducted by market research agency and TRIM.
As an assumption for the simulation, the new supply area uses an estimate obtained by applying a certain multiplying factor to the average ofthe past results. The lost area is based on the average of the past results as assumption.

6%
4%
2%
0%

(month/Dec. '06 Dec. '08 Dec. '10 Dec. '12 Dec. '14 Dec. '16 Dec. '18 Dec. '20 year)
1．Prepared by TRIM based on the statistics data publicized by Sanko Estate Co., Ltd. and
NLI Research Institute.
2．Please refer to glossary for definition of building classes.

50

4. Appendix

For-Sale Property Market■ Expected Cap Rate of Retail Properties andEconomy Hotel for Lodging■ Expected Cap Rate of Office (major cities)
Tokyo (Otemachi, Marunouchi)

Nagoya (around Nagoya Sta.)

Osaka (Midosuji)

Osaka (Umeda)

Retail property (Ginza)

Retail property (Osaka)

Economy hotel for lodging (Tokyo)

Economy hotel for lodging (Osaka)

Fukuoka (Tenjin)
(%)

(%)

8.0

7.5

7.0

6.5
6.0
5.5
5.0
4.5
4.0
3.5

3.0

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

Oct '20

Oct '19

Oct '18

Oct '17

Oct '16

Oct '15

Oct '14

Oct '13

Oct '12

Oct '11

Oct '10

Oct '09

Oct '08

Oct '07

Oct '06

Oct '05

Oct '20

Oct '19

Oct '18

Oct '17

Oct '16

Oct '15

Oct '14

Oct '13

Oct '12

Oct '11

Oct '10

Oct '09

Oct '08

Oct '07

Oct '060
2.0
Oct '05

0
2.5

51

4. Appendix

Portfolio Map

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

Shinjuku

Ichigaya

A-12

A-14

A-7

A-17

A- 4

SaitamaMusashiurawa
Prefecture

A-5

A-9
A-24
A-4

A-23

B-6

Chiyoda WardTokyo
A-21

A-2

A-26

B-8
A-13

Tachikawa

A-5

Harajuku

B-7

B-1
A-1

B-9

Tanashi

Ikebukuro
Shinjuku

Tokyo Shibuya

Tokyo

A-22
A-3

Minato Ward

A-1

Kinshicho

B-14

Chiba
B-2

B-4

KawasakiA-25
B-5

Hamamatsucho

A-15

B-1

Musashikosugi

Chuo Ward

ShibuyaB-7

B-11

ShinagawaA-6

Shinbashi
A-18

Chiba
Prefecture

B-3

Kawaguchi

A-3

A-27

Shibuya Ward

B-5

A-20

A-28

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

B-13

Omiya

Shinjuku Ward
A-11

■Greater Tokyo

B-6

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

TamachiB-10

Kamioka

B-1

Arca East

B-2

JPR Chiba Bldg.

B-3

JPR Yokohama Nihon Odori Bldg.

B-5

Shinyokohama 2nd Center Bldg.

B-6

Kawaguchi Center Bldg.

B-7

JPR Ueno East Bldg.

B-8

Tachikawa Business Center Bldg.

B-9

Rise Arena Bldg.

B-10

Yume-ooka Office Tower

B-11

Olinas Tower

B-12

JPR Yokohama Bldg.

B-13

Omiya Prime East

B-14

Sencity Bldg.

B-1

Tanashi ASTA

B-3

Cupo-la Main Bldg.

B-4

JPR Musashikosugi Bldg.

B-5

Musashiurawa Shopping Square

B-6

Kawasaki Dice Bldg.

B-7

FUNDES Ueno

C-12

Sompo Japan Sendai Bldg.

C-1

Niigata Ekinan Center Bldg.

C-19

JPR Nagoya Fushimi Bldg.

C-9

JPR Naha Bldg.

A-6■Other Cities
GotandaA-7

Shinagawa
C-4

A-16
A-10

OhsakiShinagawa Ward
A-1

Kanematsu Bldg.

A-13

Across Shinkawa Bldg. Annex

A-24

Science Plaza - Yonbancho Plaza

Tokyo Tatemono Honmachi Bldg.

C-17

JPR Dojima Bldg.

C-21

JPR Shinsaibashi Bldg.

C-22

JPR Shinsaibashi WestC-1

JPR Umeda Loft Bldg.

C-5

JPR Chayamachi Bldg.

A-2

Kanematsu Bldg. Annex

A-14

Shinjuku Center Bldg.

A-25

Shibadaimon Center Bldg.

A-3

JPR Ningyo-cho Bldg.

A-15

Minami Azabu Bldg.

A-26

Tokyo Square Garden

C-7

JPR Hakata Bldg.

A-4

Shin-Kojimachi Bldg.

A-16

Shinagawa Canal Bldg.

A-27

JPR Kojimachi Bldg.

C-14

Tenjin 121 Bldg.

A-5

JPR Crest Takebashi Bldg.

A-17

Rokubancho Bldg.

A-1

JPR Shibuya Tower Records Bldg.

C-20

Yakuin Business Garden

A-6

MS Shibaura Bldg.

A-18

JPR Harajuku Bldg.

A-3

JPR Jingumae 432

A-7

Gotanda First Bldg.

A-20

JPR Nihonbashi-horidome Bldg.

A-4

Shinjuku Sanchome East Bldg.

A-9

JPR Ichigaya Bldg.

A-21

JPR Sendagaya Bldg.

A-5

Yurakucho Ekimae Bldg. (Yurakucho Itocia)

A-10

Oval Court Ohsaki Mark West

A-22

Ginza Sanwa Bldg.

A-6

JPR Ginza Namiki-dori Bldg.

A-11

Shinjuku Square Tower

A-23

The Otemachi Tower

A-7

FUNDES Suidobashi

A-12

BYGS Shinjuku Bldg.

(Land with Leasehold Interest)

Acquire in 38th

A-28

Otemachi Financial City North Tower

Niigata

Kobe
Fukuoka

Sendai

NagoyaOsaka
Wakayama
Naha

C-4

Housing Design Center Kobe

C-13

Sompo Japan Wakayama Bldg.

52

4. Appendix

Portfolio List（Central Tokyo）
A-1
Kanematsu Bldg.

A-2
Kanematsu Bldg. Annex

A-3
JPR Ningyo-cho Bldg.

A-4
Shin-Kojimachi Bldg.

A-5
JPR Crest Takebashi Bldg.

The exterior of a building

Acquisition Price (million yen)

16,276

2,874

2,100

2,420

4,000

Total Floor Space*

14,995㎡

4,351㎡

4,117㎡

5,152㎡

4,790㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

100.0％

Kyobashi, Chuo-ku

Kyobashi, Chuo-ku

Nihonbashiningyocho, Chuo-ku

Kojimachi, Chiyoda-ku

Kandanishikicho, Chiyoda-ku

Acquisition Date

2001.122001.122001.11‘01.11/’02.11/’04.11

2002.6

Completed1993.2

1993.2

1989.12

1984.10

1999.9Address

A-6
MS Shibaura Bldg.

A-7
Gotanda First Bldg.

A-９
JPR Ichigaya Bldg.

A-10
Oval Court Ohsaki Mark West

A-11
Shinjuku Square Tower

The exterior of a building

Acquisition Price (million yen)

11,200

2,920

5,100

3,500

14,966

Total Floor Space*

31,020㎡

10,553㎡

5,888㎡

28,575㎡

78,796㎡(entire redevelopment area)

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

97.5％

Shibaura, Minato-ku

Nishigotanda, Shinagawa-ku

Kudanminami, Chiyoda-ku

Higashigotanda, Shinagawa-ku

Nishishinjuku, Shinjuku-ku

Acquisition Date

2003.3

2003.7

2004.5

2004.6‘04.7/’08.9/’15.3/’15.10

Completed

1988.2

1989.7

1989.3

2001.6

1994.10Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

53

4. Appendix

Portfolio List（Central Tokyo）
A-12
BYGS Shinjuku Bldg.

A-13
Across Shinkawa Bldg. Annex

A-14
Shinjuku Center Bldg.

A-15
Minami Azabu Bldg.

A-16
Shinagawa Canal Bldg.

The exterior of a building

Acquisition Price (million yen)

15,121710

21,000

3,760

2,041

Total Floor Space*

25,733㎡

5,535㎡

176,607㎡

4,570㎡

5,216㎡

Period-end occupancy rate

98.3％

100.0％

98.0％

100.0％

100.0％

Shinjuku, Shinjuku-ku

Shinkawa, Chuo-ku

Nishishinjuku, Shinjuku-ku

Minamiazabu, Minato-ku

Konan, Minato-ku‘04.11/’05.4/’10.7

2004.112008.32008.7‘08.12/’19.3

1985.4

1994.6

1979.10

1992.6

2008.7Address
Acquisition Date
Completed

A-17
Rokubancho Bldg.

A-18
JPR Harajuku Bldg.

A-20
JPR Nihonbashi-horidome Bldg.

A-21
JPR Sendagaya Bldg.

A-22
Ginza Sanwa Bldg.

The exterior of a building

Acquisition Price (million yen)

2,800

8,400

5,100

15,0503,400

Total Floor Space*

4,205㎡

6,466㎡

7,190㎡

7,683㎡

8,851㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

92.0％

Rokubancho, Chiyoda-ku

Jingumae, Shibuya-ku

Nihonbashihoridomecho, Chuo-ku

Sendagaya, Shibuya-ku

Ginza, Chuo-ku

Acquisition Date

2009.122009.122010.32010.52011.8Completed1991.10

1989.3

2002.62009.5

1982.10Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

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4. Appendix

Portfolio List（Central Tokyo）
A-23 The Otemachi Tower(Land with Leasehold Interest)

A-24
Science Plaza - Yonbancho Plaza

A-25
Shibadaimon Center Bldg.

A-26
Tokyo Square Garden

A-27
JPR Kojimachi Bldg.

36,000

2,660

4,220

18,4005,750

11,034㎡ (ground area)

24,560㎡

11,419㎡

112,645㎡

4,438㎡

100.0％

100.0％

84.3％

100.0％

100.0％

Otemachi, Chiyoda-ku

Yonbancho, Chiyoda-ku

Shibadaimon, Minato-ku

Kyobashi, Chuo-ku

Kojimachi, Chiyoda-ku

2012.32013.12’13.12/’14.7‘17.2/’17.4

2019.62014.4 (reference)

1995.2

1993.72013.2

1999.2A-3
JPR Jingumae 432

A-4
Shinjuku Sanchome East Bldg.

The exterior of a building

Acquisition Price (million yen)
Total Floor Space*
Period-end occupancy rate
Address
Acquisition Date
Completed

A-28
Otemachi Financial City North Tower

A-1
JPR Shibuya Tower Records Bldg.

11,40012,000

4,275

2,740

239,769.07㎡

8,449㎡

1,066㎡

24,617㎡

97.5%

100.0％

100.0％

100.0％

Otemachi, Chiyoda-ku

Jinnan, Shibuya-ku

Jingumae, Shibuya-ku

Shinjuku, Shinjuku-ku

Acquisition Date

2020.122003.6

2006.3‘07.3/’08.4

Completed2012.10

1992.2

2006.2

2007.1The exterior of a building

Acquisition Price (million yen)
Total Floor Space*
Period-end occupancy rate
Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

55

4. Appendix

Portfolio List（ Central Tokyo, Greater Tokyo ）A-5 (Yurakucho Itocia)
Yurakucho Ekimae Building

A-6
JPR Ginza Namiki-dori Bldg.

A-7
FUNDES Suidobashi

3,400

10,1003,250

Total Floor Space*

71,957㎡

1,821㎡

1,477㎡

Period-end occupancy rate

100.0％

100.0％

87.2％

Yurakucho, Chiyoda-ku

Ginza, Chuo-ku

Kandamisakicho, Chiyoda-ku

Acquisition Date

2008.82016.122016.12Completed2007.10

2008.62015.7The exterior of a building

Acquisition Price (million yen)

Address

B-1
Arca East

B-2
JPR Chiba Bldg.

B-3
JPR Yokohama Nihon Odori Bldg.

B-5
Shinyokohama 2nd Center Bldg.

B-6
Kawaguchi Center Bldg.

The exterior of a building

Acquisition Price (million yen)

5,880

2,350

2,927

1,490

8,100

Total Floor Space*

34,281㎡

9,072㎡

9,146㎡

7,781㎡

28,420㎡

Period-end occupancy rate

100.0％

97.6％

100.0％

96.9％

100.0％

Kinshi, Sumida-ku

Chiba, Chiba

Yokohama, Kanagawa

Yokohama, Kanagawa

Kawaguchi, Saitama

Acquisition Date

2001.112001.122001.11‘02.9/’13.3

2004.2Completed1997.3

1991.1

1989.10

1991.8

1994.2

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

56

4. Appendix

Portfolio List（Greater Tokyo）
B-7
JPR Ueno East Bldg.

B-8
Tachikawa Business Center Bldg.

B-9
Rise Arena Bldg.

B-10
Yume-ooka Office Tower

B-11
Olinas Tower

The exterior of a building

Acquisition Price (million yen)

3,250

3,188

5,831

6,510

31,300Total Floor Space*

8,490㎡

14,706㎡

91,280㎡

185,974㎡

257,842㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

100.0％

100.0％

Matsugaya, Taito-ku

Tachikawa, Tokyo

Higashiikebukuro, Toshima-ku

Yokohama, Kanagawa

Taihei, Sumida-ku

Acquisition Date

2004.3‘05.9/’07.2

2007.32007.72009.6

Completed1992.10

1994.122007.1

1997.32006.2

Address

B-12 (Note 1)
JPR Yokohama Bldg.

B-13
Omiya Prime East

B-14
Sencity Bldg.

B-1
Tanashi ASTA

B-3
Cupo-la Main Bldg.

The exterior of a building

Acquisition Price (million yen)

7,000

6,090

13,870

10,2002,100

Total Floor Space*

8,772㎡

9,203㎡

158,663㎡

80,675㎡

48,321㎡

Period-end occupancy rate

98.7％

100.0％

100.0％

100.0％

100.0％

Yokohama, Kanagawa

Saitama, Saitama

Chiba, Chiba

Nishitokyo, Tokyo

Kawaguchi, Saitama

Acquisition Date

2010.122013.32020.3

2001.112006.3Completed

1981.52009.2

1993.4

1995.2

2006.1

Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.
(Note 1) The property was renamed from Tokyo Tatemono Yokohama Bldg. to JPR Yokohama Bldg. as of January 1, 2021.

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4. Appendix

Portfolio List（Greater Tokyo）
B-1
Tanashi ASTA

B-3
Cupo-la Main Bldg.

B-4
JPR Musashikosugi Bldg.

The exterior of a building

Acquisition Price (million yen)

10,200

2,100

7,254

Total Floor Space*

80,675㎡

48,321㎡

18,394㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

Nishitokyo, Tokyo

Kawaguchi, Saitama

Kawasaki, Kanagawa

Acquisition Date

2001.112006.32006.9Completed1995.2

2006.1

1983.3

Address

B-5
Musashiurawa Shopping Square

B-6
Kawasaki Dice Bldg.

B-7
FUNDES Ueno

The exterior of a building

Acquisition Price (million yen)

4,335

15,0803,800

Total Floor Space*

28,930㎡

36,902㎡

2,235㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

Saitama, Saitama

Kawasaki, Kanagawa

Ueno, Taito-ku

Acquisition Date

2007.32007.42019.6

Completed2005.10

2003.82017.7Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.

58

4. Appendix

Portfolio List（Other Cities）
C-1
Niigata Ekinan Center Bldg.

C-4
Tokyo Tatemono Honmachi Bldg.

C-7 (Note 1)
JPR Hakata Bldg.

C-9
JPR Naha Bldg.

C-12
Sompo Japan Sendai Bldg.

2,140

4,150

1,885

1,560

3,150

Total Floor Space*

19,950㎡

14,619㎡

9,828㎡

5,780㎡

10,783㎡

Period-end occupancy rate

100.0％

94.3％

98.9％

97.9％

99.7％

Niigata, Niigata

Osaka, Osaka

Fukuoka, Fukuoka

Naha, Okinawa

Sendai, Miyagi

Acquisition Date

2001.112001.112001.112001.11

2002.6

Completed1996.3

1970.2

1985.6

1991.10

1997.12The exterior of a building

Acquisition Price (million yen)

Address

C-13
Sompo Japan Wakayama Bldg.

C-14
Tenjin 121 Bldg.

C-17
JPR Dojima Bldg.

C-19
JPR Nagoya Fushimi Bldg.

C-20
Yakuin Business Garden

The exterior of a building

Acquisition Price (million yen)

1,670

2,810

2,140

4,137

10,996

Total Floor Space*

6,715㎡

8,690㎡

5,696㎡

10,201㎡

22,286㎡

Period-end occupancy rate

100.0％

100.0％

92.1％

99.5％

99.9％

Wakayama, Wakayama

Fukuoka, Fukuoka

Osaka, Osaka

Nagoya, Aichi

Fukuoka, Fukuoka

Acquisition Date

2002.6

2002.6

2004.1

2005.32012.8Completed1996.7

2000.7

1993.10

1991.32009.1

Address* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.
(Note 1) As to JPR Hakata Bldg., JPR sold its 35.0% co-ownership in real estate trust beneficiary interest on December 24, 2020. Therefore, “Acquisition Price” indicate amounts for the 65.0% co-ownership owned
by JPR as of the end of the current fiscal period.

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4. Appendix

Portfolio List（Other Cities）
C-21
JPR Shinsaibashi Bldg.

C-22 (Note 1)
JPR Shinsaibashi West

The exterior of a building

Acquisition Price (million yen)

5,430

3,750

Total Floor Space*

5,303㎡

7,738㎡

Period-end occupancy rate

100.0％

99.9％

Osaka, Osaka

Osaka, Osaka

Acquisition Date

2005.52020.1

Completed2003.2

1986.9Address

C-1
JPR Umeda Loft Bldg.

C-4
Housing Design Center Kobe

C-5
JPR Chayamachi Bldg.

The exterior of a building

Acquisition Price (million yen)

13,000

7,220

6,000

Total Floor Space*

17,897㎡

33,877㎡

3,219㎡

Period-end occupancy rate

100.0％

100.0％

100.0％

Address

Osaka, Osaka

Kobe, Hyogo

Osaka, Osaka

Acquisition Date

‘03.5/’03.7

2005.92006.8

1990.4

1994.6

1994.6

Completed* The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.
(Note 1) The property was renamed from Minami Semba Bldg. to JPR Shinsaibashi West as of January 15, 2021.

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4. Appendix

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

8955

Having expanded IR information by adding a variety of contents,
JPR provides information in a timely manner
Property Information• [Occupancy Rate]
Occupancy Rate: data for each property (Excel)
updated monthly• [Property Data Library]
Property Data Book, Property Appraisal Summary,
Historical Data
• [Portfolio data]
Asset class, Area, Ratio of Properties by Property
Acquisition Channel, Ratio of Tenant Occupancy• [Video Presentation of Major Properties]

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

Information of ESG
•
•
•
•
•
•

ESG of JPR
Initiatives on behalf of the environment
Initiatives for Society
Corporate Governance Initiatives
Sustainability reportGRI Standards Content Index
Extensive ESG related information
Regularly announce updated data61

Glossary
Term
Acquisition price

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

Asset size

The total acquisition prices of the owned properties.

Investment ratio

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

Occupancy rate /occupancy rate
based on concluded
contracts

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

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

Average unit rent

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

Average rent-free
periodThe average of the rent-free periods agreed upon in new lease contracts becoming effective in each fiscal
period.

Revised amount ofmonthly rent

Revised amount of monthly rent indicates the sum total (including common charges) of monthly rent afterrevision minus monthly rent before revision upon contract renewal with rent revision in each fiscal period. For
the revised amount of monthly rent for the 36th fiscal period (Jun. ‘20), the amount of increase is an estimatebased on consents regarding rents becoming effective in the fiscal period, and the amount of decrease is an
estimate assumed for the rents becoming effective in the fiscal period.

Change amount inmonthly rent upontenant replacement

Target rent

Base rent

Rent gap

Term

Meaning

Definition of buildingclasses

The definitions of building classes used in “Changes in the average rent of Tokyo CBDs“ and “Changes inthe vacancy rate of Tokyo CBDs” on page 50 are as follows.
Target area: Major business districts in 5 central wards of Tokyo and areas with high percentage of officebuildings in surrounding wards (Gotanda/ Osaki, Kita-shinagawa/ Higashi-shinagawa, Yushima/ Hongo/
Koraku, Meguro-ku)
Class A:
Total floor area of 10,000 tsubo or more, floor size of 300 tsubo or more, age lessthan 15 years
Class B:
Floor size of 200 tsubo or more, not applicable of A class building (including ofbuilding except for A class of age more over 15 years)
Class C:
Floor size of 100 tsubo or more but less than 200 tsubo

NOI yield(Rental revenue - real estate - expenses related to rent business + depreciation) / book value (oracquisition price, depending on the case)
NOI yield is calculated using the above formula, by dividing the book value (or acquisition price) in theformula by 365 days and multiplying it by the number of business days of the relevant fiscal period.

After-depreciation
yield(Rental revenue - real estate - expenses related to rent business) / book value (or acquisition price,depending on the case)Number of tenants

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

Ratio of long-term,
fixed interest ratedebts

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

Average maturity

Weighted average calculated by dividing the remaining periods to the repayment dates and redemption
dates of borrowings and investment corporation bonds at the end of each fiscal period by the balance ofrespective borrowings and investment corporation bonds at the end of each fiscal period
For borrowings with scheduled repayment in installments, the weighted average of the remaining period tothe scheduled repayment dates of each installment payment in accordance with the relevant repayment
amountAverage debt cost

(Sum total of interest expenses, interest expenses for investment corporation bonds, borrowing-related
expenses (excluding expenses related to early repayment of debts and expenses related to the commitmentline agreement), amortization of investment corporation bond issuance costs and investment corporationbond administration expenses incurred in each fiscal period), divided by the business days of the relevant
fiscal period or the said period, and annualized by multiplying by 365 days / average balance of debts andinvestment corporation bonds for each fiscal period or for the said period

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

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

Cap rate

Capitalization rate by the direct capitalization method
Direct capitalization method is one of the methods to calculate the value estimated by income approach (amethod 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 the capitalization rate.

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

MeaningChange amount in monthly rent upon tenant replacement indicates the sum total (including common charges)of monthly rent after tenant replacement minus monthly rent before tenant replacement in each fiscal period.
The change amount of monthly rent upon tenant replacement for the 36ｔｈ fiscal period (Jun. ‘20) is an
estimate based on consents regarding move-ins/move-outs and rents becoming effective in the fiscal period.
Target rent refers to the rent level (the highest limit) TRIM sets for each fiscal period as the target for inviting
new tenants and revising rents for existing tenants, and are set at roughly the same level as the highest limitof market rent.

Base rent refers to the rent level (the lowest limit) TRIM sets for each fiscal period as the base for inviting new
tenants and revising rents for existing tenants, and are set at roughly the same level as market rent.

The rent gap for a month refers to, in lease contracts due for renewal during the four periods from the period
ending in June 2020, the ratio obtained by subtracting the total difference between the lower limit of rent in
the market range and the existing rent that is lower than the lower limit of rent in the market range from thetotal difference between the upper limit of rent in the market range and the existing rent (excluding newcontracts, etc.) that exceeds the upper limit of rent in the market range and dividing that monthly differenceby the monthly rent for the month in question.

62

Disclaimer• This material contains information that constitutes forward-looking statements. Such forward-looking
statements are made by Japan Prime Realty Investment Corporation (JPR) and Tokyo Realty Investment
Management, Inc. (TRIM) based on information currently available, and are therefore not guarantees of future
performance. Actual results may differ materially from those in the forward-looking statements as a result ofvarious factors including known or unknown risks and uncertainties.

• This material is solely for the purpose of providing information, and is not intended for the purpose of offeringor soliciting investment, or as a means of marketing activities. Please refer any inquiries for possible purchase ofinvestment units or investment corporation bonds of JPR to your securities companies.
• Although JPR takes all possible measures to ensure the accuracy of the content provided in this material(including references to legislation and taxation), it makes no guarantee as to the accuracy or reliability of thecontent. Furthermore, the content may be subject to change without prior notice.
• The photos used in this material include those of the assets other than what JPR owns or plans to acquire.
Please note that for assets indicated as land with leasehold interest, JPR owns only the land and does not own
any building on it.
• Unless otherwise noted, the figures indicated in this material are rounded down to the nearest specified unit formonetary amounts and space areas, and rounded off to the nearest specified unit for percentages and otherfigures. Accordingly, the sum totals of monetary amounts or percentages of respective items may not matchthe sum totals of actual figures.

63