31st
Report on Operating and Management Results
Thirty-First Fiscal Period Semi-Annual Report
January 1, 2017 – June 30, 2017

Japan Prime Realty Investment Corporation

Tokyo Square GardenDetermined Cash Distribution
The 31st fiscal period ended June 2017

¥7,213
Forecast Cash Distribution (reference)
The 32nd fiscal period ending December 2017

¥7,220Contents
JPR at a Glance

1

Message to Our Unitholders

2

Account Highlights

3

Message from Asset Manager

4

JPR’s 15 Years of Advancement

6

Internal Growth Strategy

8

External Growth Strategy

9

Financial Strategy

10

Initiatives on Governance11

Overview of Portfolio Properties

12

Initiatives on Sustainability

29

Structure and History of JPR

30

Overview of Asset Manager

31

Asset Management Report

32

Financial Statements

52(1) Balance Sheets

52(2) Statements of Income andRetained Earnings

54(3) Statements of Changes inUnitholders’ Equity

55(4) Statements of Cash Distributions

56(5) Statements of Cash Flows

57(6) Notes to Financial Statements

58(7) Detailed Schedules

68(8) Independent Auditor’s Report

72(9) Other Notes (Information only)73

Investor Information

74

Tokyo Square GardenJPR at a Glance
Japan Prime Realty Investment Corporation (JPR) is a J-REIT with a large-scale combined portfolio that is
focused on office properties in Tokyo (Note). It aims to achieve stable growth of cash distributions, building on
the quality of its properties and solid management operations.
(Note) “Office properties in Tokyo” represent office properties located in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards) and Greater Tokyo (all other areas of Tokyo, Chiba,
Kanagawa and Saitama Prefectures) (the same applies throughout this report).

Portfolio
JPR has built a large-scale combined portfolio of assets
under the basic policy of making investments focused on
office properties in Tokyo.

No. of Properties and Size

62 properties 435.0 billion yen
Investment Ratio by Area
Tokyo:

84.5% Other Cities: 15.5%
Investment Ratio by Asset Class

Office:76.8%

Financial BaseJPR has constructed a financial base under the basic
policy of conservatively controlling LTV and utilizing
long-term, fixed interest rate debts.

Retail:

23.2%

LTV

40.7%
Ratio of Long-Term, Fixed Interest Rate Debts

100.0%
Issuer Rating

AA- (R&I)
Sponsors
JPR makes the best of the comprehensive capabilities in
the real estate, construction and finance areas of the fivesponsors led by Tokyo Tatemono together with Yasuda
Real Estate, Taisei Corporation, Sompo Japan
Nipponkoa Insurance and Meiji Yasuda Life Insurance.

(Note) Aggregate value of properties acquired from and based on information provided bysponsors, etc. refers to the aggregate acquisition price of real estate, etc. JPR has acquiredsince its listing either from the sponsors, etc. or based on the information provided by thesponsors, etc., and includes the properties already sold.
Sponsors, etc. represent the five sponsor companies of JPR, their affiliate companies andspecial purpose companies (SPCs) in which the sponsors have made equity investment(the same applies throughout this report).

A (S&P)

Aggregate Value of Properties Acquired from andBased on Information Provided by Sponsors, etc.

343.3 billion yen
Major Properties Acquired from Sponsors, etc.

The Otemachi Tower(Land with Leasehold Interest)

Olinas Tower

GINZA GATES

1

Message to Our Unitholders

Japan Prime Realty
Investment Corporation

Hirohito Kaneko

Executive Officer

Nobuhisa Kusanagi

Supervising Officer

Masato Denawa

Supervising Officer(From left to right) Nobuhisa Kusanagi, Hirohito Kaneko and Masato Denawa*The term of office of Hirohito Kaneko, Executive Officer, will expire on September 14, 2017. In accordance with this, it is planned that
Satoshi Okubo will take office as new Executive Officer as of September 15, 2017.

Dear Investors,
We at Japan Prime Realty Investment Corporation (JPR) would like to express our sincere
gratitude for the continued loyal patronage you have extended to us.
Having settled the 31st fiscal period (January 1, 2017 – June 30, 2017) at the end of June 2017, we
renew our cordial appreciation for your patronage and support.
Going forward, JPR will continue working with Tokyo Realty Investment Management, Inc.
(TRIM), to which we entrust asset management, to realize stable growth of our portfolio over the
medium to long term while taking into full account the governance of JPR as an investment
corporation.
We ask for your continued understanding and support of our operations.

Profile of New Executive Officer

Satoshi Okubo
Executive Officer
Japan Prime Realty Investment Corporation
Satoshi Okubo joined Tokyo Tatemono Co., Ltd. in April 1977. After serving as Director and Head of the Osaka
Branch Office of Tokyo Tatemono, he took office as President and Chief Executive Officer of Tokyo Realty
Investment Management, Inc. (TRIM) in June 2010. He was then appointed Director of TRIM in April 2017. He willtake office as Executive Officer of Japan Prime Realty Investment Corporation in September 2017.

2

Japan Prime Realty Investment Corporation

Account Highlights
Distribution per unit for the 31st fiscal period ended June 30, 2017 came to 7,213 yen, marking the seventhstraight fiscal period with a period-on-period increase.
For the 32nd fiscal period ending December 2017, JPR anticipates another period-on-period increase in
distribution per unit, forecasting 7,220 yen.

Distribution per Unit(yen/unit)

7,500
Forecast cash distribution

Determined cash distribution

7,213

Determined cash distribution (current (31st) fiscal period)

7,048

Forecast cash distribution (next (32nd) fiscal period)
7,000

6,756
6,588
6,500

6,419

6,351

7,220

(Forecast)

7,140

7,000

6,630

6,510

6,360
6,180
6,000

5,500

0
26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)

32nd Period(Dec. 2017)29th Period
ended
Jun. 2016

30th Period
ended
Dec. 2016

31st Period
ended
Jun. 2017

Operating Results
26th Period
ended
Dec. 2014

27th Period
ended
Jun. 2015

28th Period
ended
Dec. 2015

Operating revenue(million yen)

13,902

14,251

14,105

14,246

15,105

15,118

Ordinary income(million yen)

5,239

5,566

5,746

5,897

6,153

6,868

Net income(million yen)

5,238

5,603

5,749

5,896

6,152

6,867

Unitholders’ equity per
unit
(yen)

239,246

247,529

247,696

247,862

248,154258,5163

Message from Asset Manager

Yoshihiro Jozaki

President and Chief Executive Officer (CEO)Tokyo Realty Investment Management, Inc.
(TRIM)
Career Highlights
Yoshihiro Jozaki joined Tokyo Tatemono Co., Ltd. in Jan 1989. After serving as
Head of Kyushu Branch, Managing Officer and Head of Kansai Branch, he took
office as President and CEO of Tokyo Realty Investment Management, Inc. in
Apr. 2017.

On behalf of Tokyo Realty Investment Management, Inc. (TRIM), I would like to express our sincere
gratitude for your loyal patronage.
I took office as President and CEO of TRIM as of April 1, 2017.
Japan Prime Realty Investment Corporation (JPR) was listed on the Tokyo Stock Exchange in June 2002 as
the country’s fifth J-REIT. Since then, JPR has demonstrated proven records of accomplishment of stable
management and operations. JPR is now celebrating its 15th anniversary since listing.
In this regard, I sincerely appreciate the support and encouragement you have extended to JPR over the years.
Upon reaching this milestone 15th anniversary, we renew our determination to do our utmost to meet yourexpectations.

For the 31st fiscal period, an increase in revenues due to the acquisition of new properties andstable internal growth enabled JPR to achieve a period-on-period increase in cash
distributions for the seventh straight fiscal period, with distribution per unit reaching 7,213
yen, a record high since JPR’s listing.

1

Financial Results of the 31st Fiscal Period Ended June 2017❚❚ Cash distribution per unit: ¥7,213 (up ¥165 period-on-period)❚❚ Achieved a period-on-period increase in cash distributions for the seventh straight fiscal periods❚❚ Achieved record-high distribution per unit since listing❚❚ Forecast distribution per unit for the next fiscal period: ¥7,220 (32nd fiscal period ending December 2017)4Japan Prime Realty Investment Corporation

For the 31st fiscal period, JPR generated good financial results thanks to an increase in revenues through acquiring
three properties in Central Tokyo, as well as internal growth through raising of rents upon tenant replacement andother measures.
Distribution per unit came to 7,213 yen, a record high since listing and up 165 yen from the previous fiscal period,
marking the seventh straight fiscal period with a period-on-period increase.
For the 32nd fiscal period ending December 2017, distribution per unit is forecast to be 7,220 yen, marking the eighth
straight fiscal period with a period-on-period increase, as continuous endeavors will be made to raise rents, andmaintain and enhance occupancy rates amid an overall increase in contract rents due to strong demand for officespaces.

2

Acquisition of Tokyo Square Garden
In January 2017, JPR conducted a public offering andused the obtained proceeds to acquire Tokyo Square
Garden, a large-scale office building developed by Tokyo
Tatemono, the main sponsor.
Located in the area in front of Tokyo Station, where atransformation into one of the best business districts inTokyo is under way, Tokyo Square Garden is a highquality property boasting a floor plate of more than
1,000 tsubos and having great appeal.

A floor plate of morethan 1,000 tsubos andcolumn-free spaces
Acquisition Price
Ownership interest

18,400 million yen
8.22%

Acquisition dateFebruary 2013

Site area

Kyobashi Station Plaza
that is directly
connected to
Kyobashi Station on
the Tokyo Metro GinzaLine

8,124.72 m2

Total floor space

February 1, 2017 (50%)
April 4, 2017 (50%)

3Completed112,645.83 m2

Floors

B4/24F

Overview of Public Offering

Date of resolution of issuance

Number of units newly issued

Total offering amountJanuary 6, 2017

50,000 units

21,257 million yen

After issuance of new investment units
Unitholders’ capital

Number of issued investment units

210.3 billion yen ➤ 231.6 billion yen 873,000 units ➤ 923,000 units*The investment units newly issued consist of 47,600 units via primary offering and 2,400 units through secondary offering with an over-allotment option.

5

Celebrating the 15th Anniversary since Listing with Thanks to Investors

JPR’s 15 Years of Advancement

Listed in May 2002, JPR celebrated its 15th anniversary in the 31st fiscal period.
Since listing, JPR has steadily expanded its asset size while enhancing the quality of its portfolio.
Going forward, JPR will continue its endeavors on vigorously selective investments in a balanced manner,with a focus on office properties in Tokyo, and aim to achieve stable growth of cash distributions.
Asset size

Office properties in Tokyo(billion yen)

Office properties in Other Cities

Retail properties

450

400

350

Asset size surpassed

200 billion yen

300

in 4 years since listing

245.3

250

200

163.6
150

125.7
92.1

100

13.2
38.8

50

0

94.5
13.2
39.7

33.2
39.7

139.6

179.6
40.4

197.6
50.0

202.6 209.2
57.2

47.9

47.9

48.3

45.2

40.1

41.5

52.7

57.5

1st
Period2nd
Period3rd
Period4th
Period5th
Period

43.1

39.4

45.2

45.2

43.1

135.7

141.6

13th
Period14th
Period

299.4
95.3

93.9

31.1

43.1

43.9
91.2

99.2

100.1

100.1

100.1

108.2

114.7

6th
Period7th
Period8th
Period9th
Period10th
Period11th
Period12th
Period

77.4

96.1

99.5

77.0

63.8

38.2

38.2

280.6

251.9

222.4
93.9

275.1

172.9

15th
Period(Jun. 2002) (Dec. 2002) (Jun. 2003) (Dec. 2003) (Jun. 2004) (Dec. 2004) (Jun. 2005) (Dec. 2005) (Jun. 2006) (Dec. 2006) (Jun. 2007) (Dec. 2007) (Jun. 2008) (Dec. 2008) (Jun. 2009)

No. ofproperties

25

27

30

32

38

42

42

42

44

46

48

49

50

52

Portfolio Management Standards
Upon listing, JPR had portfolio management standards that set a target investment ratio by area of roughly 60% forTokyo versus 40% for Other Cities and a target investment ratio by asset class of roughly 80% for office properties
versus 20% for retail properties. In the 16th fiscal period ended December 2009, however, JPR changed the standards
as follows with a policy of focusing investments in office properties in Tokyo.

Target investment ratio by area

Tokyo: 80 - 90%
Other Cities: 20 - 10%

6Target investment ratio by asset class

Office: 70 - 90%
Retail: 30 - 10%51

Japan Prime Realty Investment Corporation

Asset size surpassed

400 billion yen

in 12 years since listing

Asset size surpassed

300 billion yen

380.9

in 8 years since listing

310.6

331.2

95.2

341.5

341.5

344.9
95.2

95.2

95.2

95.2

95.3
26.5

26.5

26.5

391.9

398.6

95.2

95.2

404.7 404.7

405.5

409.5

410.3

410.3

421.4

100.9

95.2

95.2

95.2

95.2

95.2

95.2

37.5

37.5

37.5

37.5

37.5

43.0

435.0
100.9

41.0

26.5

37.5

37.5

37.5

259.2

265.8

271.9

271.9

272.7

276.7

277.5

277.5

277.5

293.0

259.2

21st
Period22nd
Period23rd
Period24th
Period25th
Period26th
Period27th
Period28th
Period29th
Period30th
Period31st
Period

26.5

31.1

184.1

16th
Period

209.5

219.8

219.8

223.2

17th
Period18th
Period19th
Period20th
Period(Dec. 2009) (Jun. 2010) (Dec. 2010) (Jun. 2011) (Dec. 2011) (Jun. 2012) (Dec. 2012) (Jun. 2013) (Dec. 2013) (Jun. 2014) (Dec. 2014) (Jun. 2015) (Dec. 2015) (Jun. 2016) (Dec. 2016) (Jun. 2017)

53

55

56

56

57

58

59

60

62

62

62

62

62

62

63

62

Changes in Investment Ratios by Area and by Asset ClassAs a result of focused investments in office properties in Tokyo, the investment ratio of office properties in Tokyo stoodat 67.4% as of the end of the 31st fiscal period, up 23.9% compared with the 43.5% as of the end of the 1st fiscal period.
End of 1st Fiscal Period (June 30, 2002)

End of 31st Fiscal Period (June 30, 2017)

Increase in the investment ratio of
office properties in Tokyothrough focused investments
Office in
Other Cities
42.1%
Retailin Tokyo
14.4%

Office in
Tokyo
43.5%

+23.9%

Retail in
Other Cities
6.0%
Office in
Other Cities
9.4%
Retailin Tokyo
17.2%

Officein Tokyo

67.4%
7

Internal Growth Strategy
JPR has achieved internal growth through an increase in rents while maintaining the occupancy rate at ahigh level, with its measures including flexible use of target rents proving effective.

Major Reinforcement Strategies
1. Flexibly use target rents

JPR conducts leasing by setting target rents, to be used upon concluding new contracts
or renewing existing contracts for respective properties, for each fiscal period in
accordance with the market trends.

2. R einforce investments forvalue enhancement

JPR works to raise rents for new contracts and reinforce property competitiveness byinvesting in interior fittings and facilities, etc. that meet tenant needs.

3. C ontinuously enhancetenant satisfaction

Deliberately responding to tenants and creating safe and secured environments areimportant initiatives that positively affect rent negotiations as well as help prevent
contract cancellations from happening.

4. S trategically use rent-free
periods

JPR uses rent-free periods strategically, intending to raise rents for new contracts andconduct upward revision of rents upon contract renewal in the future.

Average Occupancy Rate
The average occupancy rate of theportfolio (period average ofoccupancy rates at end of months)
has remained at a high level,
reaching the 98% level.

(%)

Entire portfolio

100
99.6
98

97.2

Office properties

99.8

100.0

97.5

97.4

Retail properties

100.0

100.0
98.3

98.5

99.9
97.8

97.5

97.8

96.8

96
95.9

96.2

96.1

27th Period(Jun. 2015)

28th Period(Dec. 2015)

94

92

0

26th Period(Dec. 2014)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)30th Period(Dec. 2016)

31st Period(Jun. 2017)

Changes in Revised Amount of Monthly Rent, Etc.
By amount, upward revision of rents
has continued to surpass downward
revision since the 26th fiscal period
ended December 2014.

(million yen)

20

Upward revision

Downward revision

10

0

-10

-20

8

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

Japan Prime Realty Investment Corporation

External Growth Strategy
JPR is resolved to continuously work on investments focused on office properties in Tokyo in order toenhance its growth potential over the long term, while conducting vigorously selective investments in retailproperties as well as office properties in regional cities to enhance the stability of earnings.

Basic Strategy
1. Focused investments inoffice properties in Tokyo

Improve the quality of the portfolio by making investments focused on officeproperties in Tokyo that are expected to contribute to long-term growth

Compared with other regional cities, Tokyo allows expectations for more stable occupancy and higher rent levels, and is believed tooffer larger rooms for an increase of rents when the leasing market shows a recovery trend. Looking ahead, JPR will continue tomake investments focused on office properties in Tokyo, with an aim to further improve the quality of its portfolio and enhance its
growth potential over a long term.

2. Vigorously selective
investments in retailproperties as well as officeproperties in regional cities

For retail properties as well as office properties in regional cities, work to invest
in strictly selected blue-chip properties that can keep stable revenues at a certain
level

While securing growth potential by making focused investments in office properties in Tokyo, JPR will make vigorously selective
investments in urban retail properties with long-term, fixed-rent contracts and in large office properties in regional cities having ahigh competitive advantage in the areas, in order to complement the stability of earnings from the entire portfolio.

Cases in which JPR Acquired Properties by Utilizing Sponsor Support
JPR has displayed its strength of having sponsors comprised of real estate developers, a general contractor andfinancial institutions in acquiring blue-chip properties.
< Sponsors >The Otemachi Tower(Land with Leasehold Interest)

FUNDES Suidobashi

The Otemachi Tower (Land with
Leasehold Interest) was acquired froman SPC in which Tokyo Tatemono andTaisei Corporation have equity interests.

FUNDES Suidobashi was acquired from
Tokyo Tatemono.

Tokyo Tatemono
Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa Insurance Inc.

Meiji Yasuda Life Insurance■■ Property Acquisition Results by Channel
At JPR, the ratio of properties acquired from its sponsors, etc. andthat of properties acquired from third parties (total of properties
acquired based on the information provided by the sponsors andthose acquired other than from the sponsors, etc.) are almost equal,
standing at 49.9% for the former and 50.1% for the latter (on an
acquisition price basis).
JPR will work to increase property acquisition opportunities andconduct vigorously selective investments in blue-chip properties bybuilding sourcing abilities on its own instead of depending solely on
sponsor support.

Japan Prime Realty
Investment Corporation(securities code: 8955)

Transactions withthird parties

50.1%

Properties acquired
other than fromsponsors, etc.

27.5% Properties
acquired fromsponsors, etc.

22.6% 49.9%

Properties acquired
based on information
provided by sponsors

9Financial Strategy
By controlling the ratio of interest-bearing debts in a conservative manner and making further endeavors tolengthen the maturity of debts and diversify repayment dates, JPR has maintained a stable and strong
financial base that should allow it to respond to future changes in the financial environment.

Financial Status
JPR has maintained its conservative leverage control policy, in which it targets to keep the ratio of interest-bearing
debts to total assets largely at up to 50%, and secured a stable fund procurement base with the ratio of long-term, fixedinterest rate debts at 95% or more.
Major Financial Indicators (at end of the 31st fiscal period)

Status of Corporate Credit Ratings Assigned to JPR

Ratio of interest-bearing debts to total assets

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

40.7%

AA- (Stable)

Ratio of long-term, fixed interest rate debts

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

100.0%

Long-term:A (Stable)

Short-term:

A-1

Financing Status for the 31st Fiscal Period
JPR has successfully reduced debt cost while placing more emphasis on lengthening the maturity of interest-bearing
debts and diversifying the repayment dates.
Comparison of Debts Matured andNew Debts Borrowedin the 31st Period
Average maturity

Average Maturity of the Entire Interest-Bearing Debts and Average Debt Cost
JPR has worked to reduce financing costs and stabilize financial operations bylowering the average debt costs and lengthening the average maturity.
(%)

1.6

5.0 years ➤ 4.4 years

Average maturity (right axis)

1.44

1.27

(down 0.6 years)

1.2

Average debt cost

0.8

1.24% ➤ 0.37%

0.4

1.21

(years)Average debt cost (left axis)
1.19

1.16

1.10

8.0

6.0

1.03

4.0
3.8
years

3.9
years

4.0
years

4.0
years

4.2
years

4.2
years

4.3
years

25th Period(Jun. 2014)

26th Period(Dec. 2014)

27th Period(Jun. 2015)

28th Period(Dec. 2015)

29th Period(Jun. 2016)

30th Period(Dec. 2016)

31st Period(Jun. 2017)

2.0(down 0.87%)

0.0

0.0

Diversification of Repayment Dates for Interest-Bearing Debts
JPR has endeavored to mitigate refinance risks by diversifying repayment dates wile establishing a commitment linewith a credit limit of 24 billion yen.
(billion yen)

15

5.0

5.0

10

5

0

Investment corporation bonds

Long-term loans payable

20

4.0

2.0

5.0

13.0

8.3

8.1

9.1

8.0

10.0

11.0

9.8

10.0

10.5

32nd
Period33rd
Period34th
Period35th
Period36th
Period37th
Period38th
Period39th
Period40th
Period41st
Period

2.0

2.0

5.0

42nd
Period43rd
Period

3.0

8.0

7.0

7.0

44th
Period45th
Period46th
Period

9.0

8.5
2.0

4.0

49th
Period50th
Period51st
Period5.0
47th
Period48th
Period(Dec. 2017) (Jun. 2018) (Dec. 2018) (Jun. 2019) (Dec. 2019) (Jun. 2020) (Dec. 2020) (Jun. 2021) (Dec. 2021) (Jun. 2022) (Dec. 2022) (Jun. 2023) (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) (Dec. 2026) (Jun. 2027)

10Japan Prime Realty Investment Corporation

Initiatives on GovernanceIn the belief that it is essential to secure sound and efficient operations of JPR in order to realize its
continuous growth, consistent efforts have been made to reinforce and sustain corporate governance of JPR
and TRIM, the Asset Manager.

Board Composition that Secures Governance❚❚ At JPR, the Executive Officer has no concurrent
assignment as director of TRIM in consideration of
securing the independence of the investment corporation.
❚❚ The JPR officers have sufficient experience in practicaloperations and have a thorough knowledge of the
REIT industry. The Supervising Officers are an
attorney and a public accountant, securing theeffectiveness of their monitoring function on thebusiness operations of the investment corporation.

Member of the Board of JPR

Executive Officer:

Hirohito Kaneko (attorney) (Note)

Supervising Officer: Masato Denawa (attorney)
Supervising Officer: Nobuhisa Kusanagi(certified public accountant)(Note) The term of office of Hirohito Kaneko, Executive Officer, will expire on September 14, 2017.
In accordance with this, it is planned that Satoshi Okubo will take office as new Executive
Officer as of September 15, 2017.

Merits of Having Diversified Sponsors and Monitoring of Operations❚❚ The five sponsors that are active in the respective areas
provide properties, human resources, information andother support by taking advantage of their respective
strengths.
❚❚ Each sponsor exercises its monitoring function, from avariety of perspectives, on the business operations of
the investment corporation.
❚❚ The Compliance Office general manager that is the headof the department in charge of internal control at TRIM
is not seconded from any of the sponsor companies.

Shareholder Composition of TRIM
Real estate
Real estate
Yasuda Real Estate

Shareholding ratio:

Tokyo Tatemono

Shareholding ratio:

52%

18%

Construction
Taisei Corporation

Shareholding ratio:

10%

FinanceFinance

Meiji Yasuda Life Insurance

Sompo Japan Nipponkoa Insurance Inc.

Shareholding ratio:

10%(Asset Manager)
Tokyo Realty Investment
Management, Inc.

10%

Shareholding ratio:

Decision Making Based on Stringent Processes❚❚ Upon making decisions on property acquisitions, asset
management and other issues, TRIM conducts
stringent screening and takes other procedures fromvarious perspectives through designated committees
and other institutions.
❚❚ In particular, material transaction matters conductedwith the sponsors, etc. are screened and verified by theCompliance Committee as to their adequacy andrationality. The Committee employs a unanimous votefor approvals in principle.
❚❚ An outside attorney has been appointed as a special
member of the Compliance Committee.

Stringent Decision-Making Process(for property acquisitions)
Proposal, planning

Investment Management
Division

Review, screening

Compliance Subcommittee

Decision on acquisition
policyInvestment Subcommittee

Due diligence

Due Diligence Subcommittee

Prior review / approval oftransaction with related parties

Members of the Compliance Committee of TRIM

Final decision on Acquisition

President and CEO

Decision making on acquisition
over certain amountCorporate Planning / Administration
Division general manager

Investment Management Division
general manager

Financial Division
general manager

Compliance Officegeneral manager

Special member (outside attorney)

Conclude agreement

Compliance Committee /JPR’s Board of Directors
Investment Subcommittee
TRIM’s Board of Directors
Acquisition

In addition to the processes indicated in the above chart, there may be cases where approval by
the Board of Directors and consent by JPR are required as designated in the Act on Investment
Trusts and Investment Corporations.

11Overview of Portfolio Properties
List of Properties (62 Properties for the Entire Portfolio)
Central Tokyo (31 Properties)
Property
Number

Property Name

Location

Acquisition Date

Leasable
Percentage ofPortfolio Acquisition Floor Space(m2)
Price (%)

PML (%)

A-1

Kanematsu Bldg.

Chuo-ku, Tokyo

Dec. 27, 2001

¥16,276

3.7

7,994.02

3.9

A-2

Kanematsu Bldg. Annex

Chuo-ku, Tokyo

Dec. 27, 2001

2,874

0.7

2,291.13

5.8

A-3

JPR Ningyo-cho Bldg.

Chuo-ku, Tokyo

Nov. 16, 2001

2,100

0.5

2,804.56

3.7

Nov. 16, 2001

1,670

0.4

Nov. 21, 2002

550

0.1

Nov. 12, 2004

200

0.0

3,319.37

4.4

A-4

Shin-Kojimachi Bldg.

Chiyoda-ku, Tokyo

2,420

0.6

A-5

JPR Crest Takebashi Bldg.

Chiyoda-ku, Tokyo

Jun. 21, 2002

4,000

0.9

3,265.34

7.8

A-6

MS Shibaura Bldg.

Minato-ku, Tokyo

Mar. 28, 2003

11,2002.6 14,468.38

6.8

A-7

Gotanda First Bldg.

Shinagawa-ku, Tokyo

Jul. 23, 2003

2,920

0.7

4,241.22

7.3

A-9

JPR Ichigaya Bldg.

Chiyoda-ku, Tokyo

May 28, 2004

5,100

1.2

4,235.05

4.9

A-10

Oval Court Ohsaki Mark West

Shinagawa-ku, Tokyo

Jun. 1, 2004

3,500

0.8

4,088.44

3.5

Jul. 2, 2004

10,0002.3
0.0
0.9 19,284.71

1.3

Total

A-11

Shinjuku Square Tower

Shinjuku-ku, Tokyo

Sep. 26, 2008180

Mar. 25, 2015

4,000

Oct. 21, 2015

786

0.2

Total

14,966

3.4

Nov. 9, 2004

2,900

0.7

Apr. 12, 2005

8,921

2.1

Jul. 13, 2010

3,300

0.8

Total

A-12

BYGS Shinjuku Bldg.

Shinjuku-ku, Tokyo

15,227.80

3.1

15,121

3.5

A-13

Across Shinkawa Bldg. Annex

Chuo-ku, Tokyo

Nov. 26, 2004

710

A-14

Shinjuku Center Bldg.

Shinjuku-ku, Tokyo

Mar. 27, 2008

21,0000.2

1,253.39

4.7

4.8

8,863.98

A-15

Minami Azabu Bldg.

Minato-ku, Tokyo

Jul. 14, 2008

1.3

3,760

0.9

3,405.73

A-16

Shinagawa Canal Bldg.

Minato-ku, Tokyo

6.0

Dec. 19, 2008

1,870

0.4

1,700.57

A-17

Rokubancho Bldg.

5.3

Chiyoda-ku, Tokyo

Dec. 2, 2009

2,800

0.6

2,488.36

A-18

7.7

JPR Harajuku Bldg.

Shibuya-ku, Tokyo

Dec. 25, 2009

8,400

1.9

4,763.38

6.8

A-19

Tokyo Tatemono Kyobashi Bldg.

Chuo-ku, Tokyo

Feb. 12, 2010

5,250

1.2

3,551.01

6.7

A-20

JPR Nihonbashi-horidome Bldg.

Chuo-ku, Tokyo

Mar. 31, 2010

5,100

1.2

5,299.89

5.0

A-21

JPR Sendagaya Bldg.

Shibuya-ku, Tokyo

May 31, 2010

15,0503.5

6,177.74

2.6

A-22

Ginza Sanwa Bldg.

Chuo-ku, Tokyo

Aug. 29, 2011

3,400

0.8

1,896.69

4.5

A-23

The Otemachi Tower(Land with Leasehold Interest)

Chiyoda-ku, Tokyo

Mar. 13, 2012

36,0008.3 11,034.78

—

A-24

Science Plaza – Yonbancho Plaza

Chiyoda-ku, Tokyo

Dec. 6, 2013

2,660

0.6

3,325.29

3.1

Dec. 6, 2013

3,420

0.8
5,401.46

5.6

5,985.62

2.6

Office

A-25

A-26

Shibadaimon Center Bldg.

Minato-ku, Tokyo

Tokyo Square Garden

Chuo-ku, Tokyo

Jul. 30, 2014

800

0.2

Total

4,220

1.0

Feb. 1, 2017

9,200

2.1

Apr. 4, 2017

9,200

2.1

Total

18,4004.2

A-1

JPR Shibuya Tower Records Bldg.

Shibuya-ku, Tokyo

Jun. 30, 2003

12,0002.8

8,076.85

5.8

A-3

JPR Jingumae 432

Shibuya-ku, Tokyo

Mar. 24, 2006

4,275

1.0

1,027.33

5.4

Mar. 14, 2007

540

0.1

Apr. 24, 2008

2,200

0.5

2,347.81

1.6

2,740

0.6

Aug. 27, 2008

3,400

0.8

1,101.92

3.0

A-4

Shinjuku Sanchome East Bldg.

Shinjuku-ku, Tokyo

RetailTotal
A-5

Yurakucho Ekimae Bldg.
(Yurakucho Itocia)

Chiyoda-ku, Tokyo

A-6

GINZA GATES

Chuo-ku, Tokyo

Dec. 15, 2016

10,1002.3

1,666.55

6.8

A-7

FUNDES Suidobashi

Chiyoda-ku, Tokyo

Dec. 15, 2016

3,250

0.7

1,367.56

6.5

56.3 161,955.93—

Subtotal

12

AcquisitionPrice(in millions)¥244,862

Japan Prime Realty Investment Corporation

Greater Tokyo (17 Properties)
Property
Number

Property Name

Location

Acquisition Date

PML (%)

Arca East

Sumida-ku, Tokyo

Nov. 16, 2001

¥5,880

1.4

7,022.76

3.2

B-2

JPR Chiba Bldg.

Chiba, Chiba

Dec. 13, 2001

2,350

0.5

5,536.18

3.9

B-3

JPR Yokohama Nihon Odori Bldg.

Yokohama, Kanagawa

Nov. 16, 2001

2,927

0.7

6,066.53

6.7

Sep. 25, 2002

920

0.2

B-5

Shinyokohama 2nd Center Bldg.

Yokohama, Kanagawa

Mar. 28, 2013

570

0.1

5,284.75

10.5

1,490

0.3

B-6

Kawaguchi Center Bldg.

Kawaguchi, Saitama

Feb. 13, 2004

8,100

1.9 15,420.07

6.8

B-7

JPR Ueno East Bldg.

Taito-ku, Tokyo

Mar. 1, 2004

3,250

0.7

6,476.53

3.9

Sep. 30, 2005

888

0.2

B-8

Tachikawa Business Center Bldg.

Tachikawa, Tokyo

Feb. 28, 2007

2,300

0.5

4,670.27

4.1

3,188

0.7

Total

RetailLeasable
Percentage ofPortfolio Acquisition Floor Space(m²)
Price (%)

B-1

Total

OfficeAcquisitionPrice(in millions)

B-9

Rise Arena Bldg.

Toshima-ku, Tokyo

Mar. 22, 2007

5,831

1.3

6,023.39

1.3

B-10

Yume-ooka Office Tower

Yokohama, Kanagawa

Jul. 10, 2007

6,510

1.5 12,000.08

3.4

B-11

Olinas Tower

Sumida-ku, Tokyo

Jun. 29, 2009

31,3007.2 23,987.40

2.4

B-12

Tokyo Tatemono Yokohama Bldg.

Yokohama, Kanagawa

Dec. 27, 2010

7,000

1.6

6,494.09

5.2

B-13

Omiya Prime East

Saitama, Saitama

Mar. 22, 2013

6,090

1.4

6,871.45

2.4

B-1

Tanashi ASTA

Nishitokyo, Tokyo

Nov. 16, 2001

10,2002.3 31,121.71

3.5

B-3

Cupo-la Main Bldg.

Kawaguchi, Saitama

Mar. 31, 2006

2,100

0.5

5,963.00

8.1

B-4

JPR Musashikosugi Bldg.

Kawasaki, Kanagawa

Sep. 28, 2006

7,254

1.7 19,740.95

4.5

B-5

Musashiurawa Shopping Square

Saitama, Saitama

Mar. 19, 2007

4,335

1.0 14,960.69

7.1

B-6

Kawasaki Dice Bldg.

Kawasaki, Kanagawa

Apr. 12, 2007

15,080

3.5 12,116.35

5.9¥122,885

28.2 189,756.20—

AcquisitionPrice(in millions)Leasable
Percentage ofPortfolio Acquisition Floor Space(m²)
Price (%)

PML (%)

Subtotal

Other Cities (14 Properties)
Property
NumberOfficeProperty Name

Location

Acquisition Date

C-1

Niigata Ekinan Center Bldg.

Niigata, Niigata

Nov. 16, 2001

¥2,1400.5

5,326.88

1.7

C-4

Tokyo Tatemono Honmachi Bldg.

Osaka, Osaka

Nov. 16, 2001

4,150

1.0

7,136.30

4.3

C-7

JPR Hakata Bldg.

Fukuoka, Fukuoka

Nov. 16, 2001

2,900

0.7

6,570.48

0.5

C-9

JPR Naha Bldg.

Naha, Okinawa

Nov. 16, 2001

1,560

0.4

3,946.36

5.7

C-12

Sompo Japan Sendai Bldg.

Sendai, Miyagi

Jun. 26, 2002

3,150

0.7

7,129.14

2.0

C-13

Sompo Japan Wakayama Bldg.

Wakayama, Wakayama

Jun. 26, 2002

1,670

0.4

4,875.38

10.6

C-14

Tenjin 121 Bldg.

Fukuoka, Fukuoka

Jun. 21, 2002

2,810

0.6

3,257.73

1.6

C-17

JPR Dojima Bldg.

Osaka, Osaka

Jan. 23, 2004

2,140

0.5

3,917.52

5.0

C-19

JPR Nagoya Fushimi Bldg.

Nagoya, Aichi

Mar. 22, 2005

4,137

1.0

7,086.37

6.3

C-20

Yakuin Business Garden

Fukuoka, Fukuoka

Aug. 8, 2012

10,996

2.5 16,654.33

1.6

C-21

Benetton Shinsaibashi Bldg.

Osaka, Osaka

May 30, 2005

5,430

1.2

3,843.03

11.5

May 15, 2003

8,000

1.8

C-1

JPR Umeda Loft Bldg.

Osaka, Osaka

Jul. 16, 2003

5,000

1.1 18,586.97

4.3

Total

13,000

3.0

RetailC-4

Housing Design Center Kobe

Kobe, Hyogo

Sep. 28, 2005

7,220

1.7 35,444.13

7.2

C-5

JPR Chayamachi Bldg.

Osaka, Osaka

Aug. 30, 2006

6,000

1.4

2,485.79

8.4

Subtotal¥67,30315.5 126,260.41

—

Total

¥435,050

100.0 477,972.54

2.0(Note 1) The table above shows properties owned by JPR as of June 30, 2017.
(Note 2) The leasable floor space indicates only the portions owned by JPR. For co-owned properties, the figure indicates the portions corresponding to the equity interest held by JPR.
(Note 3) The PML indicates the figures stated in the Portfolio Earthquake PML Valuation Report prepared by Sompo Japan Nipponkoa Risk Management Inc., rounded off to the first decimal place.

13

Portfolio Map

A Central Tokyo
A-11

A-14

Shinjuku

Shinjuku Ward

A-4
A-12

A-9
Chiyoda
A-24
Ward
A-17
A-4

Tokyo

A-23

Harajuku

A-5

A-3

Shinbashi

A-18

A-1

A-5

Ichigaya

A-21
Shibuya Ward

A-7

A-6

A-25

Shibuya

Sobu Line

A-20
A-3
A-2 A-1

A-26
A-19
A-22

A-13
Keiyo Line

Chuo Ward

Minato Ward

Hamamatsucho

Tamachi
Yamanote Line

A-15

GotandaShinagawaA-7

Shinagawa Ward

A-6
A-16

A-10
Osaki

Tokaido Shinkansen
Yokosuka Line

Keihin Tohoku Line
Tokaido Main Line

Office
● A-1
● A-2
● A-3
● A-4
● A-5
● A-6
● A-7
● A-8
● A-9
● A-10● A-11● A-12● A-13● A-14● A-15RetailKanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg.
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.

● A-16● A-17● A-18● A-19● A-20● A-21● A-22● A-23

Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.
JPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
The Otemachi Tower(Land with Leasehold Interest)● A-24 Science Plaza – Yonbancho Plaza● A-25 Shibadaimon Center Bldg.

14

Minato Ward
Shinjuku Ward

■ A-6
■ A-7

JPR Shibuya Tower Records Bldg.
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
GINZA GATESFUNDES Suidobashi

Property acquired in 31st fiscal period● A-26 Tokyo Square Garden

A Central Tokyo
Chiyoda Ward
Chuo Ward

■ A-1
■ A-3
■ A-4
■ A-5

Shinagawa Ward
Shibuya Ward

B Greater Tokyo

C Other Cities

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

All other areas in Japan

Japan Prime Realty Investment Corporation

B Greater Tokyo (all other areas of Tokyo, Chiba, Kanagawa and Saitama Prefectures)
Office

Omiya

B-13

● 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 BusinessCenter Bldg.
● B-9 Rise Arena Bldg.
● B-10 Yume-ooka Office Tower● B-11 Olinas Tower● B-12 Tokyo Tatemono
Yokohama Bldg.
● B-13 Omiya Prime East

SAITAMA
Musashiurawa

B-5

Minamiurawa

Musashino Line

Kawaguchi

Saikyo Line

B-6
B-3

Matsudo

CHIBA
Seibu Shinjuku Line

B-8

Ikebukuro

B-1

TOKYO Tanashi

B-9

Chuo Main Line

Funabashi

Kinshicho

Tokyo

Shinjuku

Tachikawa

B-11
Ueno
Sobu Main Line
B-1
B-7

Keiyo Line

ShibuyaNambu Line

Chiba

Shinagawa

B-2

■ B-1
■ B-3
■ B-4
■ B-5

Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping
Square■ B-6 Kawasaki Dice Bldg.

Musashikosugi

KANAGAWA

B-4

Yokohama Line

Tokaido Shinkansen

Musashikosugi
Tokaido Main Line
KawasakiB-6

B-5

Shin-Yokohama

B-12

Yokohama
Nihon-Odori

B-10

RetailUchibo Line

B-3

Kamiooka

C Other Cities
Office● C-1 Niigata Ekinan Center Bldg.
● C-4 Tokyo Tatemono Honmachi Bldg.
● C-7 JPR Hakata Bldg.
● C-9 JPR Naha Bldg.
● C-12 Sompo Japan Sendai Bldg.
● 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● C-21 Benetton Shinsaibashi Bldg.

OSAKA

Retail
■ C-1
■ C-4
■ C-5

FUKUOKAJPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.

C-7
C-14
C-20

C-4
C-17
C-21
C-1
C-5

SENDAIC-12

NIIGATA

C-1

KOBE

C-4
NAGOYA

C-19
NAHA

C-9

WAKAYAMA

C-13

15

Properties Newly Acquired in the 31st Fiscal Period
Central Tokyo

OfficeRetailSquare Garden
A-26 Tokyo
Chuo Ward, Tokyo
Conceptual
view ofcross-section

24F

Offices

Kyobashi Environmental Station
Conference Center
Medicalfacilities
OfficeKyobashi-no-Oka
lobby
Retail facilities
Retail facilities
Chuo-dori street
Retail facilities

7F
6F
5F
4F
3F
2F
1F

Underground station plaza
Drive-in parking lot
Mechanicalparking lot

B1F
B2F
B3F
B4F

Kyobashi
StationRetail facilities

Children support facilities
Office entrance hall
Location

1-1 Kyobashi 3-chome, Chuo-ku, Tokyo

Acquisition Price

Structure/Floors

Site Area

Completed¥18,400 million

Total Floor Space

8,124.72 m2

S/SRC B4/24F
February 2013

112,645.83 m

Property Manager
2

Tokyo Tatemono Co., Ltd.
The Dai-Ichi Building Co., Ltd.

Portfolio Properties
Central Tokyo
A-1

OfficeRetailKanematsu Bldg.

A-2

Chuo Ward, Tokyo

Acquisition Price
Site Area¥16,276 million
1,751.13 m

Total Floor Space
Structure/Floors
Completed
Property Manager

Chuo Ward, Tokyo

Acquisition Price
Site Area

14,995.09 m2
S/RC/SRC B2/13F
February 1993

¥2,874 million
679.06 m2

2

Tokyo Tatemono Co., Ltd.

16

Kanematsu Bldg. Annex

Total Floor Space
Structure/Floors
Completed
Property Manager

4,351.46 m2
SRC B1/8F
February 1993

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Portfolio Properties
Central Tokyo
A-3

OfficeRetailJPR Ningyo-cho Bldg.

A-5

Chuo Ward, Tokyo

Acquisition Price
Site Area

JPR Crest Takebashi Bldg.
Chiyoda Ward, Tokyo¥2,100 million
550.06 m2

Total Floor Space
Structure/Floors
Completed

4,117.70 m2
SRC/RC B1/8F
December 1989

Property Manager

Tokyo Tatemono Co., Ltd.

A-4

Shin-Kojimachi Bldg.
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥2,420 million
657.80 m2

Total Floor Space
Structure/Floors
Completed

5,152.98 m2
SRC B1/9F
October 1984

Property Manager

Tokyo Tatemono Co., Ltd.

A-6

MS Shibaura Bldg.

Site Area
Total Floor Space¥11,200 million
8,992.18 m2
31,020.21 m

Structure/Floors
Completed
Property Manager

2

Site Area

SRC/RC/S B2/13F
February 1988

Tokyo Tatemono Co., Ltd.

¥4,000 million
636.90 m2

Total Floor Space

Structure/Floors
Completed

SRC B1/9F
September 1999

Property Manager

4,790.68 m

Tokyo Tatemono Co., Ltd.

2

A-7

Minato Ward, Tokyo

Acquisition Price

Acquisition Price

Gotanda First Bldg.
Shinagawa Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥2,920 million
1,551.19 m2

Structure/Floors
Completed

SRC/RC B2/11F
July 1989

10,553.34 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

17

Portfolio Properties
Central Tokyo
A-9

OfficeRetailJPR Ichigaya Bldg.

Court Ohsaki Mark West
A-10 Oval
Shinagawa Ward, Tokyo

Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥5,100 million
1,058.04 m2

Total Floor Space

5,888.82 m

Structure/Floors
Completed

SRC B1/9F
March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

2

Square Tower
A-11 Shinjuku
Shinjuku Ward, Tokyo

Acquisition Price
Site Area¥14,966 million
8,409.52 m2(entire redevelopment project)
Total Floor Space

78,796.00 m2(entire redevelopment project)

18

Acquisition Price
Site Area
Total Floor Space

¥3,500 million
4,006.00 m2

Structure/Floors
Completed

S/SRC B2/17F
June 2001

Property Manager

28,575.80 m

Tokyo Tatemono Co., Ltd.

2

Shinjuku Bldg.
A-12 BYGS
Shinjuku Ward, Tokyo

Structure/Floors

S/RC/SRC B4/30F

Completed

October 1994

Acquisition Price
Site Area

Property Manager

Tokyo Tatemono Co., Ltd.

Total Floor Space¥15,121 million
3,522.46 m2

Structure/Floors
Completed

25,733.10 m

Property Manager
2

SRC B2/14F
April 1985

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailShinkawa Bldg. Annex
A-13 AcrossChuo Ward, Tokyo
Acquisition Price
Site Area

Center Bldg.
A-14 Shinjuku
Shinjuku Ward, Tokyo¥710 million
858.48 m2

Total Floor Space
Structure/Floors
Completed

5,535.90 m2
S/SRC B2/10F
June 1994

Property Manager

Tokyo Tatemono Co., Ltd.

Azabu Bldg.
A-15 Minami
Minato Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space¥21,000 million
14,917.11 m2

Structure/Floors
Completed

SRC/RC/S B5/54F
October 1979

Property Manager

176,607.89 m

Tokyo Tatemono Co., Ltd.

2

Bldg.
A-17 Rokubancho
Chiyoda Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥3,760 million
778.09 m2
4,570.63 m

Structure/Floors
Completed

S 9F
June 1992

Property Manager

Tokyo Tatemono Co., Ltd.

2

Canal Bldg.
A-16 Shinagawa
Minato Ward, Tokyo
Acquisition Price
Site Area¥1,870 million
828.82 m2

Total Floor Space
Structure/Floors
Completed
Property Manager

5,216.21 m2
S B1/8F
July 2008

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space

¥2,800 million
716.95 m2

Structure/Floors
Completed

SRC B3/7F
October 1991

4,205.09 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

19

Portfolio Properties
Central Tokyo

OfficeRetailHarajuku Bldg.
A-18 JPR
Shibuya Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥8,400 million
1,205.07 m2
6,466.94 m

Tatemono Kyobashi Bldg.
A-19 Tokyo
Chuo Ward, Tokyo

Structure/Floors
Completed

SRC B1/9F
March 1989

Property Manager

Tokyo Tatemono Co., Ltd.

2

Nihonbashi-horidome Bldg.
A-20 JPR
Chuo Ward, Tokyo
Acquisition Price
Site Area

Acquisition Price
Site Area
Total Floor Space¥5,250 million
547.10 m2

Structure/Floors
Completed

SRC/S B1/10F
January 1981

Property Manager

4,419.79 m

Tokyo Tatemono Co., Ltd.

2

Sendagaya Bldg.
A-21 JPR
Shibuya Ward, Tokyo¥5,100 million
937.59 m2

Total Floor Space
Structure/Floors
Completed

7,190.82 m2
SRC B1/9F
June 2002

Property Manager

Tokyo Tatemono Co., Ltd.

Sanwa Bldg.
A-22 Ginza
Chuo Ward, Tokyo
Acquisition Price
Site Area¥3,400 million
1,119.27 m2

Total Floor Space
Structure/Floors
Completed

8,851.00 m2
SRC B2/9F
October 1982

Acquisition Price
Site Area

Property Manager

Mitsubishi Jisho Property
Management Co., Ltd.

20

Total Floor Space¥15,050 million
2,217.49 m2

Structure/Floors
Completed

7,683.19 m

Property Manager
2

S 8F
May 2009

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Central Tokyo

OfficeRetailOtemachi Tower (Land with Leasehold Interest)
A-23 The
Chiyoda Ward, Tokyo

Plaza - Yonbancho Plaza
A-24 Science
Chiyoda Ward, Tokyo
Acquisition Price
Site Area¥2,660 million
5,289.01 m2

Total Floor Space
Structure/Floors
Completed

24,560.36 m2
S/SRC/RC B2/12F
February 1995

Property Manager

Nomura Real Estate Partners Co., Ltd.

Center Bldg.
A-25 Shibadaimon
Minato Ward, Tokyo

Acquisition Price
Site Area¥36,000 million
11,034.78 m

Total Floor Space

Structure/Floors–

Completed–2–

Property Manager– (Note)(Note) Since the property consists of land with leasehold interest only, no property managementcompany has been appointed.

A-1

JPR Shibuya Tower Records Bldg.
Shibuya Ward, Tokyo

Acquisition Price
Site Area¥4,220 million
1,915.50 m2

Total Floor Space

Structure/Floors
Completed

July 1993

11,419.93 m

Property Manager

Nomura Real Estate Partners Co., Ltd.

2A-3

JPR Jingumae 432
Shibuya Ward, Tokyo

Acquisition Price
Site Area

Site Area
Total Floor Space

¥12,000 million
1,010.47 m2
8,449.56 m

Structure/Floors
Completed
Property Manager

2

SRC/S B3/8F
February 1992

Tokyo Tatemono Co., Ltd.

¥4,275 million
198.10 m2

Total Floor Space
Acquisition Price

S/SRC B1/10F

Structure/Floors
Completed

1,066.81 m2
S/SRC B1/7F
February 2006

Property Manager

Jones Lang LaSalle K.K.

21

Portfolio Properties
Central Tokyo
A-4

OfficeShinjuku Sanchome East Bldg.

Site Area¥2,740 million
2,578.69 m2

Total Floor Space

24,617.65 m

2Structure/Floors
Completed

S/SRC/RC B3/14F
January 2007

Property Manager

Tokyo Tatemono Co., Ltd.

GINZA GATESSite Area
Total Floor Space¥10,100 million
230.11 m2
1,821.67 m

2Structure/Floors
Completed
Property Manager

S 11F
June 2008

Tokyo Tatemono Co., Ltd.

Yurakucho Ekimae Bldg. (Yurakucho Itocia)
Chiyoda Ward, Tokyo

Acquisition Price
Site Area¥3,400 million
6,808.12 m2

Total Floor Space

Structure/Floors
Completed

S/SRC B4/20F
October 2007

Property Manager

71,957.65 m

Tokyo Tatemono Co., Ltd.

2

A-7

Chuo Ward, Tokyo

Acquisition Price

22

A-5

Shinjuku Ward, Tokyo

Acquisition Price

A-6

RetailFUNDES Suidobashi
Chiyoda Ward, Tokyo

Acquisition Price
Site Area
Total Floor Space

¥3,250 million
281.59 m2

Structure/Floors
Completed

July 2015

1,477.91 m

Property Manager
2

S 9F

Prime Place Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo
B-1

OfficeRetailArca East

B-2

Sumida Ward, TokyoJPR Chiba Bldg.
Chiba City, Chiba

Acquisition Price¥2,350 million

Site Area

1,382.35 m2

Total Floor Space
Structure/Floors
Completed

9,072.57 m2
S/SRC B1/13F
January 1991

Property Manager

Taisei-Yuraku Real Estate Co., Ltd.

B-3

JPR Yokohama Nihon Odori Bldg.
Yokohama City, Kanagawa

Acquisition Price
Site Area

1,100.59 m2

Total Floor Space
Acquisition Price
Site Area

3,755.01 m2

Total Floor Space

B-5¥5,880 million

34,281.86 m

Structure/Floors

Structure/Floors

S/SRC B3/19F

Completed

Completed

March 1997

Property Manager

Shinyokohama 2nd Center Bldg.

Acquisition Price
Site Area

SRC B1/11F
October 1989

Tokyo Tatemono Co., Ltd.

B-6

Yokohama City, Kanagawa

9,146.52 m2

Property Manager

Tokyo Tatemono Co., Ltd.

2¥2,927 million

Kawaguchi Center Bldg.
Kawaguchi City, Saitama¥1,490 million
841.71 m2

Total Floor Space
Structure/Floors
Completed

7,781.93 m2
S/SRC B2/12F
August 1991

Property Manager

Nomura Real Estate Partners Co., Ltd.

B-7

JPR Ueno East Bldg.
Taito Ward, Tokyo

Acquisition Price
Site Area¥3,250 million
1,242.97 m2

Total Floor Space
Structure/Floors
Completed

8,490.44 m2
S/SRC B1/8F
October 1992

Property Manager

Jones Lang LaSalle K.K.

Acquisition Price
Site Area
Total Floor Space

¥8,100 million
4,524.61 m2

Structure/Floors
Completed

S/SRC B2/15F
February 1994

28,420.85 m

Property Manager
2

Nomura Real Estate Partners Co., Ltd.

23

Portfolio Properties
Greater Tokyo
B-8

OfficeRetailTachikawa Business Center Bldg.

B-9

Tachikawa City, Tokyo

Acquisition Price

Rise Arena Bldg.
Toshima Ward, Tokyo

¥3,188 million

Site Area

2,047.22 m2

Total Floor Space
Structure/Floors
Completed

14,706.36 m2
S/SRC B1/12F
December 1994

Property Manager

Tokyo Tatemono Co., Ltd.

Office Tower
B-10 Yume-ooka
Yokohama City, Kanagawa
Acquisition Price¥6,510 million

Site Area

12,011.00 m2

Total Floor Space
Structure/Floors

185,974.87 m2
S/SRC/RC B3/27F

Completed

March 1997

Acquisition Price
Site Area

Tower
B-11 Olinas
Sumida Ward, Tokyo

Acquisition Price
Site Area¥31,300 million

27,335.29 m (entire site area)

91,280.94 m

257,842.41 m2(includes commercial tower and residential tower)

RC/SRC/S B3/42F (Note)

Completed

January 2007
Property Manager

2(including residential tower)

Taisei-Yuraku Real Estate Co., Ltd.

(Note) The commercial tower portion has 2 basement floors and 15 floors above ground.

Structure/Floors

SRC/RC/S B2/45F (Note)

CompletedFebruary 2006

Property Manager

Tokyo Tatemono Co., Ltd.

(Note) The office building has 31 floors above ground and 2 floors underground.

24

Structure/Floors

Tatemono Yokohama Bldg.
B-12 Tokyo
Yokohama City, Kanagawa

2

Total Floor Space

9,377.28 m2(entire redevelopment project)
Total Floor Space

Property Manager

Tokyo Tatemono Co., Ltd.

¥5,831 million

Acquisition Price
Site Area
Total Floor Space

¥7,000 million
1,110.28 m2

Structure/Floors
Completed

8,772.51 m

Property Manager
2

SRC B1/9F
May 1981

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Greater Tokyo

OfficeRetailPrime East
B-13 Omiya
Saitama City, Saitama

Acquisition Price
Site Area

2,268.09 m2

Total Floor SpaceB-3

9,203.98 m

Structure/Floors
Completed

S 9F
February 2009

Property Manager

Tokyo Tatemono Co., Ltd.

2

Cupo-la Main Bldg.

¥2,100 million
15,008.28 m2(entire redevelopment project)
Total Floor Space

48,321.96 m

2Structure/Floors

S/RC/SRC B2/10F

Tanashi ASTA
Nishitokyo City, Tokyo

Acquisition Price
Site Area

January 2006
Tokyo Tatemono Co., Ltd.

Structure/Floors
Completed

SRC B2/17F
February 1995

Property Manager

80,675.27 m

2

Tokyo Tatemono Co., Ltd.

JPR Musashikosugi Bldg.
Kawasaki City, Kanagawa

Acquisition Price

Completed

Property Manager¥10,200 million
12,326.30 m2

Total Floor Space

B-4

Kawaguchi City, Saitama

Acquisition Price
Site Area¥6,090 million

B-1

Site Area
Total Floor Space

¥7,254 million
4,757.09 m2

Structure/Floors
Completed

SRC/RC/S B1/6F
March 1983

18,394.32 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

25

Portfolio Properties
Greater Tokyo
B-5

Office/ Other Cities

RetailMusashiurawa Shopping Square

B-6

Saitama City, Saitama

Acquisition Price

OfficeRetailKawasaki Dice Bldg.
Kawasaki City, Kanagawa¥4,335 million

Site Area

8,317.99 m2

Total Floor Space

28,930.36 m2

Structure/Floors
Completed

S B1/4F
October 2005

Property Manager

Geo-Akamatsu Co., Ltd.
Tokyo Tatemono Co., Ltd.

C-1

Niigata Ekinan Center Bldg.
Niigata City, Niigata

Acquisition Price¥2,140 million

Site Area

2,706.99 m2

Total Floor Space
Structure/Floors

19,950.42 m2
S/SRC B1/10F

Completed

March 1996

Property Manager

Jones Lang LaSalle K.K.

C-4

Tokyo Tatemono Honmachi Bldg.

Acquisition Price
Site Area

4,475.45 m2

Total Floor Space

Structure/Floors
Completed

S/SRC/RC B2/11F
August 2003

Property Manager

36,902.01 m

Tokyo Tatemono Co., Ltd.

2

C-7

Osaka City, Osaka¥15,080 million

JPR Hakata Bldg.
Fukuoka City, Fukuoka
Acquisition Price
Site Area¥2,900 million
1,214.63 m2

Total Floor Space
Structure/Floors

9,828.73 m2
S/SRC B1/12F

Completed

June 1985
expansion in November 2003

Property Manager

Tokyo Tatemono Co., Ltd.

C-9

JPR Naha Bldg.
Naha City, Okinawa

Acquisition Price
Site Area

959.87 m2

Total Floor Space
Acquisition Price
Site Area
Total Floor Space

¥4,150 million
1,432.64 m2
14,619.52 m

2

26

Structure/Floors
Completed
Property Manager

SRC B3/9F
February 1970

Tokyo Tatemono Co., Ltd.

¥1,560 million

Structure/Floors
Completed
Property Manager

5,780.71 m2
SRC/S 12F
October 1991

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Other Cities

OfficeRetailJapan Sendai Bldg.
C-12 Sompo
Sendai City, Miyagi
Acquisition Price
Site Area

Japan Wakayama Bldg.
C-13 Sompo
Wakayama City, Wakayama
Acquisition Price¥3,150 million

Site Area

1,895.67 m

Total Floor Space
Structure/Floors
Completed

Total Floor Space

10,783.52 m2

Structure/Floors

SRC B1/12F

Completed

December 1997

Property Manager

Site Area

Acquisition Price¥2,810 million

Site Area

1,164.39 m

Total Floor Space
Structure/Floors
Completed

8,690.95 m2

Structure/Floors

S/SRC 13F

Completed

July 2000

Total Floor Space

1,610.38 m2
10,201.44 m

Structure/Floors
Completed
Property Manager

25,696.01 m2
SRC B2/9F
October 1993

Property Manager

Tokyo Tatemono Co., Ltd.

Nagoya Fushimi Bldg.
C-19 JPR
Nagoya City, Aichi¥2,140 million
668.11 m2

Total Floor Space

Property Manager

Site Area

July 1996

Tokyo Tatemono Co., Ltd.

2

¥4,137 million

S 9F

Dojima Bldg.
C-17 JPR
Osaka City, Osaka
Acquisition Price

Acquisition Price

6,715.07 m2

Property Manager

Tokyo Tatemono Co., Ltd.

121 Bldg.
C-14 Tenjin
Fukuoka City, Fukuoka¥1,670 million
1,128.45 m2

2

Tokyo Tatemono Co., Ltd.

Business Garden
C-20 Yakuin
Fukuoka City, Fukuoka

SRC B1/9F
March 1991

Tokyo Tatemono Co., Ltd.

Acquisition Price
Site Area
Total Floor Space

¥10,996 million
4,348.43 m2

Structure/Floors
Completed

SRC 14F
January 2009

22,286.35 m

Property Manager
2

Tokyo Tatemono Co., Ltd.

27

Portfolio Properties
Other Cities

OfficeRetailShinsaibashi Bldg.
C-21 Benetton
Osaka City, Osaka

Acquisition Price¥5,430 million

Site Area

609.31 m2
5,303.98 m

2

February 2003
expansion in January 2005

Property Manager

Tokyo Tatemono Co., Ltd.

Housing Design Center Kobe

Osaka City, Osaka

Acquisition Price

Site Area
Total Floor Space

¥7,220 million
3,994.47 m2
33,877.71 m

2Structure/Floors
Completed
Property Manager

Site Area

SRC/S B2/11F
June 1994

Tokyo Tatemono Co., Ltd.

¥13,000 million
3,518.68 m2

Total Floor Space

Structure/Floors
Completed

SRC B1/8F
April 1990

Property Manager

17,897.56 m

Tokyo Tatemono Co., Ltd.

2

C-5

Kobe City, Hyogo

Acquisition Price

28

S B2/10FJPR Umeda Loft Bldg.

Completed

Total Floor Space

C-4

Structure/Floors

C-1

JPR Chayamachi Bldg.
Osaka City, Osaka

Acquisition Price
Site Area
Total Floor Space

¥6,000 million
592.45 m2

Structure/Floors
Completed

3,219.36 m

Property Manager
2

S/SRC 9F
June 1994

Tokyo Tatemono Co., Ltd.

Japan Prime Realty Investment Corporation

Initiatives on Sustainability
For JPR to grow stably over the medium to long term, it is essential to address such social requirements as
considerations to the environment, society and governance. JPR will continue its endeavors to enhancesustainability, centering on its initiatives for environmental friendliness, etc.
In this regard, TRIM, the asset management company of JPR, has established its “Sustainability Policy” as
described below.

Sustainability Policy
Based on its corporate philosophy of working with integrity and commitment to responsibilities, TRIM is resolved tocontribute to the sustainable development of society and the investment management business through discussion andcooperation with its stakeholders (including investors and tenants), while aiming to maximize value for JPR’s unitholders.
■■ 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.

■■ Initiatives on Behalf of the Environment
Recognizing the importance of addressing environmental issues, we will aim to reduce the environmental load through managing the assets owned
by JPR.
❚❚ We will promote energy saving and reduction of greenhouse gas emissions.
❚❚ We will endeavor for effective use of water resources and work on the “3Rs” (reuse, reduce and recycle) of waste.
❚❚ We will strive to proactively disclose information on environmental issues.

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

■■ Initiatives on Behalf of Employees
We will respect each one of our employees to realize an employee-friendly workplace, helping them to enhance abilities in their specialties.

■■ Initiatives on Behalf of the Society
We will abide by laws and regulations as well as the rules of society, and conduct business operations with a focus on transparency and objectivity
while holding on to our high moral standards.

Initiatives on Environmental Friendliness■■ Acquisition of DBJ Green Building Certification
JPR has obtained DBJ Green Building Certification, a system of the Development Bank of Japan Inc. (DBJ) to certify real estate properties
evincing high environmental and social awareness, etc., for its properties. With another three properties newly certified in July 2017, JPR has
acquired the Certification for 17 properties in its portfolio.
Properties with exceptionally highenvironmental & social awareness

Newly certified properties

Olinas Tower
Yakuin Business Garden

Properties with excellent
environmental & social awareness
Properties withthe best classenvironmental &social awarenessTokyo Square
GardenProperties withhighenvironmental &social awareness

Minami Azabu
Bldg.

JPR Chiba Bldg.

■■ Continuous Participation in GRESB Survey
JPR has participated in the GRESB Survey, which analyzes and evaluates environmental
considerations and sustainability, since 2011. In the survey conducted in 2016, JPR was designatedas “Green Star,” marking the third consecutive year of recognition with the highest ranking in thesurvey. JPR was also granted “4 Stars” in the GRESB Rating (five-level rating with the highest
being “5 Stars”), which was newly introduced to make relative assessment based on total scores.
JPR believes that its endeavors have been recognized as a result of having diligently worked toreduce energy consumption by establishing a consistent system among all business partners
involved in building operations, from the asset manager (TRIM) to property managers andbuilding maintenance companies, under a clear environmental policy as well as asking forcooperation of tenants.

JPR Sendagaya Bldg.
Shinagawa Canal Bldg.
Rise Arena Bldg.
Omiya Prime East
Yume-ooka Office Tower
GRESB, which stands
for Global Real Estate
Sustainability
Benchmark, is abenchmark system
for analyzing andevaluating sustainability in terms of environmental friendliness and social nature. It is basedon surveys conducted by a private sector group
established primarily by major pension funds in
Europe.

29

Structure and History of JPR
The Objective and Basic Characteristics of JPR
With the fundamental concept of “investment in urban commercial real estate,” JPR shall invest primarily in realestate, which comprises superior urban office buildings (urban commercial facilities), retail properties found in
thriving commercial areas, multi-use facilities and the land on which they are located as well as in asset-backed
securities that have such real estate as their primary investments. In addition, in light of the returns and risks ofthese investment targets, JPR shall make it a basic policy to invest not only in Tokyo, but also strive to diversify into
other regional cities so as to maximize the advantages of portfolio management.

Corporate History
Date

Description

September 6, 2001
September 14, 2001
November 16, 2001
January 22, 2002
June 14, 2002

The founder (Tokyo Realty Investment Management, Inc.) filed for establishment of the investment corporation under Article69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)
Japan Prime Realty Investment Corporation was registered and established under Article 166 of the Investment Trusts Act
Started asset management (acquisition of real estate beneficiary interests in trust for 13 underlying trust assets comprising 11
office properties and 2 retail properties) (¥40,730 million in total)
Investment unit split (2.5 units for 1 existing unit) pursuant to Article 87 of the Investment Trusts Act
Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange and started trading

Structure of JPR
52%

18%

10%

10%

10%

Tokyo Tatemono

Yasuda Real Estate

Taisei Corporation

Sompo Japan Nipponkoa
Insurance Inc.

Meiji Yasuda
Life Insurance

Administrative Agent forEnvironment-Related Laws andRegulations

Equity Investment
Asset Manager
Tokyo Realty Investment
Management, Inc.

Tokyo Tatemono Co., Ltd.

Entrustment of
Asset Management

Tenant Agents
Tokyo Tatemono Co., Ltd.
Yasuda Real Estate Co., Ltd.
Taisei Corporation

Japan Prime Realty
Investment Corporation
Loans / Issue
of Investment
Corporation
Bonds
Liabilities
EquityInvestment

AssetsUnitholders'EquityProperty Manager
Entrustment ofasset custody

30

Tokyo Tatemono Co., Ltd.

Investment Corporation

Asset
Management
Property

General Tenant Services Agent /Construction Management Agent /Property Transfer Agent /Administrative Agent forEnvironment-Related Laws andRegulations

Cash
Distribution

Entrustment ofgeneraladministration

Asset Custodian

General Administrator

Mizuho Trust & Banking, Co., Ltd.

Mizuho Trust & Banking, Co., Ltd.
and others

Lender / Investment
Corporation Bond Investor

Unitholders
Transaction
Unitholders

Japan Prime Realty Investment Corporation

Overview of Asset Manager
Overview
Tokyo Realty Investment Management, Inc. (TRIM)
Asset management for investment corporations¥350 million
Tokyo Tatemono Co., Ltd. (52%)
Yasuda Real Estate Co., Ltd. (18%)
Taisei Corporation (10%)
Sompo Japan Nipponkoa Insurance Inc. (10%)
Meiji Yasuda Life Insurance Company (10%)

NameBusiness Description
Capitalization

Shareholder
Composition (Note 1)

Corporate History

April 28, 2000
October 13, 2000

EstablishedObtained license as real estate transaction agent (currently: No. (3) 79025 licensed by Governor of Tokyo)
Obtained license as discretionary transaction agent under the Building Lots and Building Transactions Business Act (Approval
Number: No. 3)
Obtained license as asset management agent for investment corporation under the Act on Investment Trusts and Investment
Corporations (Approval Number: No. 7 licensed by the Prime Minister)
Registered for financial instruments exchange business (investment management business)(Registration Number: No.362 (Kinsho) Head of Kanto Local Finance Bureau) (Note 2)
Applied for registration and submitted application form for financial instruments exchange business

March 16, 2001
June 20, 2001
September 30, 2007
November 28, 2007

(Note 1) The percentage represents the ratio of the number of respective shares with voting rights to the total number of shares with voting rights.
(Note 2) Tokyo Realty Investment Management, Inc. was deemed to have been registered as investment management business, applicable to the Supplementary Provisions Article 159-1 of the Act for
Partial Revision of the Securities and Exchange Act, etc. (Act No. 65 of 2006)

Organization Chart
Shareholders’ Meeting
Auditors
Board of Directors

Investment Committee(Investment Subcommittee /Fund Management
Subcommittee)

President & CEO

Investment Management
Division

Compliance Committee(Compliance Subcommittee)
Compliance OfficeFinancial DivisionCorporate Planning /Administration Division

Research Group
Asset
Asset
Asset
Asset
Investment Management Management Management EngineeringGroup
3 Group
1 Group
2 GroupGroup

FinancialGroup

IR Group

FundManagement
Group

Planning
Group

GeneralAdministration
Group

Decision-Making Institutions for Investment Management
TRIM has established the Investment Committee as the institution to make investment management decisions, as wellas the Investment Subcommittee (including the Due Diligence Subcommittee) and the Fund Management
Subcommittee as subsidiary bodies of the Committee. These committees are comprised of the President and CEO,
Investment Management Division General Manager, Financial Division General Manager, and Corporate Planning /Administration Division General Manager. The Compliance Office General Manager also participates in thesecommittees to enhance confirmation in terms of legal compliance. Matters concerning the targets and policies ofinvestment management are decided by the Board of Directors, and matters concerning planning and implementationof asset management are decided by the Investment Committee.
Matters concerning acquisition, disposition or management of individual properties are decided by the Investment
Subcommittee or the Fund Management Subcommittee, respectively. Moreover, the Board of Directors has final
decision-making authority for acquisitions and dispositions of individual assets having over a certain amount of value.
31

Asset Management Report

1. Overview of Asset Management(1) Changes in Operating Results and Other Management Data

Operating Revenue
Rent revenue – real estate

Million yen

27th Fiscal
Period(Jan. 1, 2015 Jun. 30, 2015)
14,251Million yen

14,251

14,105

14,246

15,105Gain on sale of real estate

Million yen

－
7,273

－
7,372

0

210

Million yen

－
7,554

7,944

7,370

Million yen

6,845

6,553

6,658

6,898

6,599

Million yen

－
6,831

－
6,874

300

Million yen

－
6,697

7,161

－
7,747

Million yen

5,566

5,746

5,897

6,153

6,868

Million yen

5,603

5,749

5,896

6,152

6,867

Million yen

418,778

418,739

418,738

432,307446,068

Reference
Information

Financial Indices

Cash Distribution per
Unit, etc.

Assets, etc.

Operating Performance

Fiscal Period

Operating Expenses
Expenses related to rent business
Loss on sale of real estate

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

Unit

%

28th Fiscal
Period(Jul. 1, 2015 Dec. 31, 2015)
14,10529th Fiscal
Period(Jan. 1, 2016 Jun. 30, 2016)14,24630th Fiscal
Period(Jul. 1, 2016 Dec. 31, 2016)
15,10531st Fiscal
Period(Jan. 1, 2017 Jun. 30, 2017)15,11814,907(+1.1)(-0.0)(-0.0)(+3.2)(+3.2)

Million yen

176,458

176,292

176,126

188,960

181,394

Million yen

216,092

216,238

216,384

216,639

238,611(+9.5)(+0.1)(+0.1)(+0.1)(+10.1)Million yen

210,395

210,395

210,395

210,395

231,653

Million yen

5,603

5,751

5,897

6,152

6,657

%

100.0

100.0

100.0

100.0

96.9

Units

873,000

873,000

873,000

873,000

923,000

Yen

247,529

247,696

247,862

248,154258,516

Yen

6,419

6,588

6,756

7,048

7,213

Yen

6,419

6,588

6,756

7,048

7,213

Yen
%

－
1.3

－
1.4

－
1.4

－
1.4

－
1.6

%

2.7

2.7

2.8

2.9

3.2

%

2.7

2.7

2.7

2.8

3.0

%

5.5

5.3

5.5

5.6

6.1

197,378

216,092

216,238

216,384

216,639

51.6

51.6

51.7

50.1

53.5

(+3.9)(+0.0)(+0.0)(-1.6)(+3.4)

%

42.1

42.1

42.1

43.7

40.7

Times

7.9

8.7

9.1

9.9

10.7

Million yen

8,531

8,619

8,738

9,269

9,452

Million yen

1,073

994

955

931

887

Million yen

9,260

9,427

9,473

10,09010,216

%

4.6

4.6

4.6

4.7

4.7

Million yen

8,599

8,581

8,701

9,366

9,652

%

4.2

4.1

4.3

4.4

4.4

%

Million yen

%

62

62

62

63

62

647

650

661

679

730

m2

475,007.79

476,352.67

476,345.81

477,249.40

477,972.54

%

96.7

97.4

98.1

98.6

98.0

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

3230

Japan Prime Realty Investment Corporation(Note 9) Annualized NOI from leasing / property acquisition price (27th fiscal period: ¥409.52 billion, 28th fiscal period: ¥410.30 billion, 29th fiscal period: ¥410.30 billion,
30th fiscal period: ¥423.65 billion and 31st fiscal period: ¥439.89 billion)
Annualized NCF from leasing / property acquisition price(Note 10) Annualization is based on 365 days for a year and calculated by using the following management days: 27th fiscal period: 181 days, 28th fiscal period: 184 days,
29th fiscal period: 182 days, 30th fiscal period: 184 days and 31st fiscal period: 181 days.
(Note 11) Shin-Kojimachi Bldg., Fukuoka Bldg., Shinjuku Square Tower, BYGS Shinjuku Bldg., Shibadaimon Center Bldg., Tokyo Square Garden, Shinjuku Sanchome
East Bldg., Shinyokohama 2nd Center Bldg., Tachikawa Business Center Bldg. and JPR Umeda Loft Bldg. were acquired at multiple times but are calculated as
one property.
(Note 12) Total leasable floor space in this table indicates the contracted area.
(Note 13) Any ratio indicated on financial indices is rounded to the first decimal place (except for the dividend payout ratio, which is rounded off to the first decimal place).

(2) 31st Fiscal Period Asset Management
1) Milestones of JPR
Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts andInvestment Corporations (hereafter, the Investment Trusts Act), and was listed on the Tokyo Stock Exchange Real Estate Investment
Trust Section (securities code: 8955) on June 14, 2002 with 289,600 outstanding investment units. With the subsequently
implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding
totals 923,000 units as of today. JPR has assigned the asset management of its portfolio to Tokyo Realty Investment Management,
Inc. (hereafter, the Asset Manager), through which JPR aims to maximize unitholder value by efficiently managing the portfolio
primarily comprising office properties and retail properties.
2) Management Environment
In the 31st fiscal period, the Japanese economy saw exports and production pick up, backed by the modest recovery in overseas economies, andresulting improvements in corporate earnings led to a recovery in capital investment. On top of this, consumer spending also showed a pick up
under the solid employment and income environments. As a result, the domestic business conditions remained on a moderate recovery path. On theother hand, a sense of uncertainty about the political and economic situations outside Japan was kept undispersed during the six months.

The Office Property Leasing Market
The supply and demand conditions in the office property leasing market of the 23 wards of Tokyo remained tight as new demand
for such positive development as setting up new offices, expanding the office spaces and moving to better locations continued to
be strong. The upward trend of the rent levels for new contracts also continued, although at a moderate pace.
The Retail Property Leasing Market
The need of tenants to open stores remained strong for urban retail properties in which JPR targets for investment. Consumption by

inbound foreign tourists has also picked up, and the leasing market for urban retail properties remains in good shape in good locations, such as
Ginza, Omotesando and Shinsaibashi.

The For-Sale Real Estate Market

In the for-sale real estate market, investors remain highly willing to purchase properties. However, as blue-chip properties are in short supply,
especially in central Tokyo, property transaction prices are steadily being formed at a high level. With low-yield transactions continuing toprevail, the acquisition environment remains harsh for players focusing on yields. Accordingly, they continue to look for ways toeffectively acquire properties, such as diversifying the target assets for investment and conducting asset replacement.

3) Portfolio Management Status
Asset Replacement
JPR investigates possible investments mainly in office properties in the Tokyo area, plus retail properties and office properties inregional cities, with the primary aim of improving the quality of the portfolio and achieving stable growth of its earnings while
paying attention to balancing diversification of the portfolio, both in terms of location and asset type.
During the 31st fiscal period, JPR sold Fukuoka Bldg. (sale price: 3,100 million yen) and JPR Hakata-chuo Bldg. (sale price: 1,900
million yen) and acquired Tokyo Square Garden (acquisition price: 18,400 million yen). As a result, the balance of JPR’s assets
under management totaled 62 properties, or 435.0 billion yen on an acquisition price basis, with the total leasable floor spacestanding at 477,972m2 and the number of tenants reaching 730 as of June 30, 2017.

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Asset Management Report

Operational Management of Portfolio
In the office property leasing market in the 31st fiscal period, the vacancy rate stayed at a low level, given a more advanced
improvement in the supply and demand balance in Tokyo and other areas. Under such circumstances, JPR endeavored to attract
new tenants through strategic leasing activities and enhance the satisfaction of existing tenants by keeping close cooperation withproperty management companies and brokers, with an aim of enhancing earnings from the entire portfolio and improving
occupancy rates. Because of contract cancellations at some properties in Other Cities, the occupancy rate of JPR’s entire portfolio
at the end of the 31st fiscal period decreased 0.6 percentage points period-on-period, but remained high at 98.0%.
In terms of property management, based on JPR’s brand concept A/3S (Amenity/Service, Safety and Save Energy), JPR continued
to proactively implement value enhancement works based on tenant needs with the aim to create spaces where the workers feel
comfortable. As an endeavor to implement energy-saving measures, JPR conducted renovations of air-conditioning systems andreplaced lighting equipment in common areas with LED lamps, which are expected to be effective for achieving this objective, at
its multiple properties.
With regard to initiatives on environmental issues, JPR has continuously obtained the DBJ Green Building Certification*1, having
acquired the Certification for 14 of the buildings it owns as of the end of the 31st fiscal period. Moreover, in the GRESB*2 Real
Estate Assessment (the survey conducted in 2016), JPR was designated as “Green Star,” marking the third consecutive year ofrecognition with the highest ranking in the survey. JPR was also granted “4 Stars” in the GRESB Rating (five-level rating with thehighest being “5 Stars”), which was newly introduced to make relative assessment based on total scores.
*1 The DBJ Green Building Certification is a certification system by Development Bank of Japan Inc., designed to select superior real estate that meets the demandof the times, with a purpose of promoting properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet the various
social requirements surrounding real estate from stakeholders (“Green Buildings”).
*2 GRESB, which stands for Global Real Estate Sustainability Benchmark, is a benchmark system for analyzing and evaluating sustainability of real estate companies,
REITs and real estate private placement funds, in terms of environmental friendliness and social nature. It is based on surveys conducted by a group of the same
name composed of more than 50 organizations worldwide such as European pension asset managers.

Fund Procurement
In the 31st fiscal period, JPR endeavored to expand its asset size and reinforce its financial base by additionally issuing investment
units (please refer to (3) Additional Offerings, etc. below to procure 21.2 billion yen, which was used to acquire a new property
and repay borrowings.
JPR remains engaged in debt financing with more emphasis placed on lengthening the maturity of interest-bearing debts anddiversifying repayment dates, in an effort to make its financial base more solid and stronger against the backdrop of the favorable
fund procurement environment and low interest rates. In the 31st fiscal period, JPR borrowed 19.0 billion yen to fund the repayment
of interest-bearing debts that matured during the fiscal period. The average maturity and average debt cost (Note 1) of the newborrowing stood at 4.4 years and 0.37%, respectively, in contrast to 5.0 years and 1.24% for the relevant interest-bearing debts
before refinancing.
As of the end of the 31st fiscal period, the balance of interest-bearing debts totaled 181.3 billion yen, with total outstanding
borrowings of 146.8 billion yen and investment corporation bonds of 34.5 billion yen. The ratio of interest-bearing debts to total
assets (Note 2) was 40.7%, long-term and fixed interest-bearing debt ratio (Note 3) was 100.0%, average debt cost was 1.03% andaverage maturity (Note 4) was 4.3 years as of the end of the fiscal period.
Moreover, JPR established a commitment line with a credit limit of 24 billion yen with six financial institutions.
The following represents the issuer ratings for JPR as of the end of this fiscal period.
Details of Corporate Credit Ratings as of June 30, 2017
Credit Rating Agency
Rating and Investment Information, Inc.

Corporate Credit Rating
AA- (Stable)

Standard & Poor's Ratings Japan K.K.

Long-term: A (Stable)
Short-term: A-1(Note 1) Average debt cost: sum total of interest expenses, interest expenses on investment corporation bonds, borrowing expenses (excluding expenses for early
repayment of borrowings and for commitment line agreements), amortization of investment corporation bond issuance costs and investment corporation bondmanagement expenses, divided by the number of business days for each fiscal period and annualized by multiplying by 365 days / average balance ofborrowings and investment corporation bonds for each fiscal period(Note 2) Ratio of interest-bearing debts to total assets: (balance of borrowings + balance of investment corporation bonds)/ total assets(Note 3) Long-term and fixed interest-bearing debt ratio: long-term, fixed-interest interest-bearing debts / total interest-bearing debts(Note 4) Average maturity is arrived at by calculating a weighted average of maturities from the end of the 31st fiscal period to the repayment deadlines for all interestbearing debts based on the balance of each interest-bearing debt.

32

34

Japan Prime Realty Investment Corporation(3) Additional Offerings, etc.
The table below indicates additional offerings, etc. JPR has conducted since inception through the 31st fiscal period.
Date

Event

Number of Units
Outstanding

Unitholders' Capital(millions of yen)

Remarks

Variation
240

Balance240

Variation
120

Balance
120(Note 1)

September 14, 2001

Established by private placement

November 16, 2001

Additional private placement

62,00062,24031,00031,120(Note 2)January 22, 2002

Split of investment units

93,360155,600

31,120(Note 3)June 14, 2002

Initial public offering

134,000

289,600－
25,862

56,982(Note 4)

July 15, 2003

Additional public offering

134,400

424,000

30,75887,740(Note 5)

August 9, 2003

Third-party allotment

6,000

430,000

1,373

89,113(Note 6)

February 1, 2005

Additional public offering

95,000525,000

25,001

114,115(Note 7)

March 1, 2005

Third-party allotment

5,000

530,000

1,315

115,431(Note 8)February 6, 2007

Additional public offering

90,000620,000

39,120154,552(Note 9)March 7, 2007

Third-party allotment

5,000

625,000

2,173

156,725(Note 10)February 8, 2010

Additional public offering

82,000707,000

13,315170,040(Note 11)

March 12, 2010

Third-party allotment

8,000

715,000

1,299

171,339(Note 12)

July 30, 2012

Additional public offering

101,420

816,420

19,089190,429(Note 13)

August 29, 2012

Third-party allotment

8,580

825,000

1,614

192,044(Note 14)June 16, 2015

Additional public offering

45,700870,700

17,472

209,516(Note 15)

June 24, 2015

Third-party allotment

2,300

873,000

879

210,395(Note 16)January 24, 2017

Additional public offering

47,600920,600

20,237

230,632(Note 17)

February 14, 2017

Third-party allotment

2,400

923,000

1,020

231,653(Note 18)

(Note 1)

JPR was formed by the investment of three companies Tokyo Tatemono Co., Ltd. (100 units), Taisei Corporation (100 units), and Tokyo Realty Investment
Management, Inc. (40 units) at 500,000 yen per unit.

(Note 2)

An additional offering was made via private placement at 500,000 yen per unit. JPR then acquired 13 beneficiary interests in real estate trust and started
management.

(Note 3)

A single investment unit was split into 2.5 units.

(Note 4)

New investment units were issued through a public offering at 200,000 yen per unit (underwriting price of 193,000 yen per unit) to repay short-term debts,
finance the acquisition of new specific assets, etc.

(Note 5)New investment units were issued through a public offering at 237,160 yen per unit (underwriting price of 228,859 yen per unit) to repay short-term debts,
acquire new specific assets, etc.

(Note 6)

New investment units were issued through a third-party allotment at 228,859 yen per unit to repay short-term debts, acquire new specific assets, etc.

(Note 7)

New investment units were issued through a public offering at 272,440 yen per unit (underwriting price of 263,177 yen per unit) to repay short-term debts,
acquire new specific assets, etc.

(Note 8)New investment units were issued through a third-party allotment at 263,177 yen per unit to repay short-term debts, acquire new specific assets, etc.

(Note 9)New investment units were issued through a public offering at 449,820 yen per unit (underwriting price of 434,673 yen per unit) to repay debts, acquire new
specific assets, etc.

(Note 10)

New investment units were issued through a third-party allotment at 434,673 yen per unit to repay debts, acquire new specific assets, etc.

(Note 11)

New investment units were issued through a public offering at 168,101 yen per unit (underwriting price of 162,382 yen per unit) to repay short-term debts,
redeem investment corporation bonds, acquire new specific assets, etc.

(Note 12)

New investment units were issued through a third-party allotment at 162,382 yen per unit to repay short-term debts, redeem investment corporation bonds,
acquire new specific assets, etc.

(Note 13)

New investment units were issued through a public offering at 194,610 yen per unit (underwriting price of 188,222 yen per unit) to partly fund acquisition of
new specific assets and repay debts.

(Note 14)

New investment units were issued through a third-party allotment at 188,222 yen per unit to partly fund acquisition of new specific assets and repay debts.

(Note 15)

New investment units were issued through a public offering at 394,875 yen per unit (underwriting price of 382,320 yen per unit) to repay debts, etc.

(Note 16)

New investment units were issued through a third-party allotment at 382,320 yen per unit to repay debts, etc.

(Note 17)

New investment units were issued through a public offering at 439,040 yen per unit (underwriting price of 425,152 yen per unit) to fund acquisition of new
specific assets and partly repay debts.

(Note 18)

New investment units were issued through a third-party allotment at 425,452 yen per unit to fund acquisition of new specific assets and partly repay debts.

3335

Asset Management Report(4) Cash Distributions
With regard to the cash distributions of the 31st fiscal period, JPR decided to distribute part of the retained earnings brought forwardthat had been internally reserved through the 30th fiscal period, with the aim of having the profit distributions deducted as expenses
based on application of the special provision on taxation of investment corporations (Article 67-15 of the Act on Special Measures
Concerning Taxation) and in order to minimize the burden to unitholders incurred by accrual of corporate income tax, etc. In addition,
JPR decided to internally reserve 210 million yen out of the retained earnings for the 31st fiscal period as reserve for reduction entry,
applying the Special Measures in Case Land or Other Property is Acquired in Advance in 2009 or 2010 (Article 66-2 of the Act on
Special Measures Concerning Taxation). As a result, the cash distribution per unit came to 7,213 yen for the 31st fiscal period.
(Thousands of yen unless otherwise indicated)
27th Fiscal
Period28th Fiscal
Period29th Fiscal
Period30th Fiscal
Period31st Fiscal
Period(Jan. 1, 2015 Jun. 30, 2015)(Jul. 1, 2015 Dec. 31, 2015)(Jan. 1, 2016 Jun. 30, 2016)(Jul. 1, 2016 Dec. 31, 2016)(Jan. 1, 2017 Jun. 30, 2017)

5,623,366

5,769,258

5,914,654

6,169,462

6,883,962

19,57917,934

16,666

16,558226,363

Total Cash Distributions

5,603,787

5,751,324

5,897,988

6,152,904

6,657,599(Cash Distribution per Unit)(6,419 yen)

(6,588 yen)

(6,756 yen)

(7,048 yen)

(7,213 yen)

Fiscal Period

Unappropriated Retained Earnings at End of Period

BreakdownInternal Reserves

Total Cash Distributions from Net Income

5,603,787

5,751,324

5,897,988

6,152,904

6,657,599(Cash distribution from net income per unit)(6,419 yen)

(6,588 yen)

(6,756 yen)

(7,048 yen)

(7,213 yen)

－

－

－

－

－

Repayment of Paid-in Capital(Repayment of paid-in capital per unit)(- yen)(- yen)(- yen)(- yen)(- yen)Of the repayment of paid-in capital, total cash distributions
from the reserve for temporary difference adjustments

－

－

－

－

－

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

－

－

－

－

－

(Of the repayment of paid-in capital per unit, distribution perunit through the reduction in unitholders’ capital for tax
purposes)(- yen)(- yen)(- yen)(- yen)(- yen)(5) Future Management Policies and Vital Issues
Looking ahead, the Japanese economy is anticipated to recover moderately, given continued improvements in the employment andincome environments and supported by the effects of various policies. However, attention should be paid to the uncertainty in overseas
economies and the impacts of fluctuations in the financial and capital markets.
In the office property leasing market, new supply in the 23 wards of Tokyo is projected to remain subdued through the end of through2017. Going forward, if the economy remains brisk as it is now, the market situation in general is likely to stay in good shape with the
supply and demand condition being tight. In this regard, JPR believes it will be able to fully enjoy the positive impact of the goodmarket situation as it has focused on improving tenant satisfaction through proactive implementation of value enhancement works andprovision of elaborate management services. When conducting real estate transactions in the for-sale real estate market that continues
to appear overheated, it will become even more important to discern the growth potential in earnings of respective properties.
Considering the situation in which cap rates are decreasing in a low interest rate environment, it is required to firmly keep the attitudeof vigorously selective investment for implementing real estate investment that assumes possession of properties over the medium tolong term.
1) Acquisition of New Properties and Asset Replacement
JPR will continue to make investment focused on Tokyo office properties, with an aim to improve the quality of its portfolio andenhance its growth potential and stability over the long term. Given the briskness in the office property leasing market, the for-salereal estate market sees a decrease in purchase cap rate and expected cap rate levels. Moreover, with properties remaining in short
supply, there are deals that were closed at prices that have factored in lower cap rates and rent increases. Accordingly, JPR will
fully investigate the growth potential of such properties when acquiring them. As for retail properties as well as office properties inregional cities, JPR will work to invest in strictly selected blue-chip properties that can keep stable revenues at a certain level inorder to complement the stability of earnings from the entire portfolio. JPR will strive to acquire new properties under reasonable
terms by negotiating prices based on detailed market studies and property due diligence in considering properties.
Moreover, JPR will continue to make investment decisions after a proactive collection of information through such sources assponsors of the Asset Manager (Tokyo Tatemono Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei Corporation, Sompo Japan

3634

Japan Prime Realty Investment Corporation

Nipponkoa Insurance Inc. and Meiji Yasuda Life Insurance Company), accurately following market trends and carefully researchinginvestment value, including the future potential of candidate properties.
Furthermore, JPR will also investigate asset replacement in a prudent manner, while taking into consideration the timing of
implementation, in order to improve the quality of its portfolio and enhance its growth potential over the long term.
2) Management of Portfolio
JPR will aim to secure stable earnings over a medium to long term by working to prevent move-outs of existing tenants, encouragethem to expand office spaces in the same buildings and renew contracts with upward revision of rents through endeavors to enhancetenant satisfaction, while continuously inviting new tenants through strategic leasing activities. Specifically, JPR will conduct
management and operations based on the following policies:- Strengthen coordination with property management companies and respective tenant brokers- Propose leasing terms and conditions on the assumption of the leasing market showing a recovery trend, and accelerate decision
making- Conduct strategic value enhancement works with intent to improve property earnings and tenant satisfaction- Reinforce promotion of energy efficiency as well as responses to business continuity plans and environmental friendliness thatcommand high social request- Conduct renovations to enhance energy-saving performance of the properties by utilizing the government’s subsidy programs3) Fund Procurement
In accordance with its basic policy of implementing conservative financial operations that focus on stability, JPR will remain
engaged in conservative leverage control, targeting to basically keep the ratio of interest-bearing debts to total assets at up to 50%.
In debt financing, JPR will endeavor to further lengthen the maturity with a focus on stability in an effort to diversify the repayment
dates and reduce the repayment amount for each fiscal period, with an eye on reducing refinancing risks that may arise in accordancewith future changes in the financial environment. Moreover, JPR intends to work on fund procurement through issuance ofinvestment corporation bonds as it aims to diversify fund procurement means and sources.

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

(7) Significant Subsequent Events
Not applicable

3537

Asset Management Report

2. Overview of the Investment Corporation(1) Unitholders’ Capital
27th Fiscal
Period as ofJune 30, 2015
5,000,000

28th Fiscal
Period as ofDecember 31, 2015
5,000,000

29th Fiscal
Period as ofJune 30, 2016
5,000,000

30th Fiscal
Period as ofDecember 31, 2016
5,000,000

31st Fiscal
Period as ofJune 30, 2017
5,000,000

Total number of units issued andoutstanding

873,000

873,000

873,000

873,000

923,000

Unitholders' capital (millions of yen)

210,395

210,395

210,395

210,395

231,653

Total number of unitholders

15,68913,264

11,786

11,177

12,535

Total number of authorized units(2) Matters Related to Investment Units (Primary Investors)
The following table shows the ten largest investors according to the percentage of their owned investment units to the total number ofinvestment units outstanding as of the end of the 31st fiscal period.
Name

Address

Number ofPercentage of Total

Owned Units

Units Outstanding (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

1-8-11 Harumi, Chuo-ku, Tokyo

225,911

24.47

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

Harumi Island Triton Square Office Tower Z
Building, 1-8-12 Harumi, Chuo-ku, Tokyo

67,906

7.35

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

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

66,131

7.16

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

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

37,355

4.04

Tokyo Tatemono Co., Ltd.

1-9-9 Yaesu, Chuo-ku, Tokyo

29,3003.17

Kawasaki Gakuen

577 Matsushima, Kurashiki-shi, Okayama

25,0002.70

Meiji Yasuda Life Insurance Company

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

24,0002.60

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

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

23,033

2.49

State Street Bank West Pension Fund Clients Exempt
505233 (Standing Proxy: Settlement & Clearing Services
Division, Mizuho Bank, Ltd.)

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

18,014

1.95

State Street Bank and Trust Company 505223(Standing Proxy: Settlement & Clearing Services Division,
Mizuho Bank, Ltd.)

P.O. Box 351 Boston, MA 02101, U.S.A.
(Shinagawa Intercity Building A, 2-15-1
Konan, Minato-ku, Tokyo)

13,154

1.42

529,804

57.40

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

(3) Items Related to Directors
A. The Executive Officer, Supervising Officers and Independent Auditors as of the end of the 31st fiscal period are as follows.
Position
Executive Officer
Supervising
Officers (Note 1)
Independent
Auditor (Note 2)

Name

Other Current Assignments

Total Directors' Fee
during the 31st Fiscal
Period (thousands of yen)
2,400

Hirohito Kaneko

Representative Counsel, Hirohito Kaneko Law Office

Masato Denawa

Partner Attorney, Spring Partners

Nobuhisa Kusanagi

Group Representative Partner of GYOSEI Certified
Public Tax & Accountants' Co.

4,200

Ernst & Young
ShinNihon LLC－

16,600

Numberof Owned
Units
－
－
－
－

(Note 1) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with JPR at those and the above positions.
(Note 2) The independent auditor fees include fees regarding auditing of JPR’s English financial statements and fees regarding preparation of comfort letters for additional
issuance of new investment units.

3836

Japan Prime Realty Investment Corporation

B. Policy on Dismissing and Deciding Not to Reappoint the Independent Auditor
The dismissal of independent auditors shall be considered in accordance with the designations of the Investment Trusts Act. The
decision to not reappoint the auditor shall be studied at JPR’s Board of Directors Meetings following comprehensive considerationof circumstances including audit quality, audit fee and other various conditions.
C. Matters Regarding the Party That Was Subject to Business Suspension Order in the Past Two YearsOn December 22, 2015, the Financial Services Agency of Japan issued a three month (January 1, 2016 to March 31, 2016) businesssuspension order to Ernst & Young ShinNihon LLC, the independent auditor of JPR, under which it was prevented from taking on
any new business contracts. JPR comprehensively investigated the quality control of audits by Ernst & Young ShinNihon,
independence of its audit team, progress in implementing the business improvement plan and other factors, and confirmed that
audits of JPR by the firm are conducted appropriately. Accordingly, its audit agreement with Ernst & Young ShinNihon remains
effective.

(4) Asset Manager, Asset Custodian and Administrative Agent
The asset manager, asset custodian and administrative agents of JPR at the end of the 31st fiscal period are as follows.
Asset manager

Outsourcing Category

Name
Tokyo Realty Investment Management, Inc.

Asset custodian

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

Administrative agent (administration concerning investment corporation
bonds)

Mizuho Bank, Ltd.

3739

Asset Management Report

3. Status of JPR’s Assets Under Management(1) JPR’s Asset Structure
Asset Type

30th Fiscal Period(as of December 31, 2016)

Area

Assets owned by JPR(thousands of yen)

Percentage of total
assets (%)

86,848,847
57,384,702
20,888,573
141,524,547
51,154,014
43,494,169
31,012,692

20.1
13.3

Central Tokyo
Real estate

Greater Tokyo
Other Cities
Central Tokyo

Real estate in trust

Greater Tokyo
Other Cities

Deposits and otherassets－Total assets－

31st Fiscal Period(as of June 30, 2017)
Assets owned by JPR(thousands of yen)

86,697,991
57,134,364
20,714,393
156,942,899
50,791,875
41,601,149
32,185,653(－)
446,068,327(413,882,673)

4.8

32.7
11.8

10.1

(－)

7.2
(－)

432,307,546(401,294,854)

100.0(92.8)

Percentage of total
assets (%)

19.4
12.8
4.6
35.2
11.4
9.3
7.2
(－)
100.0
(92.8)(Note 1) Assets owned by JPR are based on the amounts appropriated on the balance sheets as of the end of the fiscal periods (book values after depreciation for real estate
and real estate in trust).
(Note 2) Figures in parenthesis are portions that practically fall on real estate owned in the object assets.

(2) Major Assets Owned by JPR
The following is an overview of the major assets (ten largest properties by book value at end of period) owned by JPR as of the end of
the 31st fiscal period.

Property NameBook Value(thousands ofyen)

Leasable Floor
Space (m2)

Leased Floor
Space (m2)Occupancy Rate(%)

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

Asset Class

Otemachi Tower (Landwith Leasehold Interest)

38,388,259

11,034.78

11,034.78

100.0

11.4

OfficeOlinas Tower

27,737,040

23,987.40

23,987.40

100.0

6.7

OfficeShinjuku Center Bldg.

22,171,744

8,863.98

8,343.16

94.1

3.3

OfficeTokyo Square Garden

18,701,152

5,985.62

5,985.62

100.0

2.9

OfficeBYGS Shinjuku Bldg.

15,462,897

15,227.80

15,145.81

99.5

3.8

OfficeJPR Sendagaya Bldg.

14,926,225

6,177.74

6,177.74

100.0

2.0

OfficeKanematsu Bldg.

14,685,270

7,994.02

7,994.02

100.0

2.6

OfficeKawasaki Dice Bldg.

13,549,812

12,116.35

12,116.35

100.0

2.8

RetailShinjuku Square Tower

13,441,422

19,284.71

19,261.84

99.9

2.6

OfficeJPR Umeda Loft Bldg.

12,458,393
191,522,220

18,586.97
129,259.37

18,586.97
128,633.69

100.0
99.5

2.4
40.4

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

4038

Japan Prime Realty Investment Corporation(3) Itemized Portfolio Assets
The following table provides an overview of the real estate properties and beneficiary interests in real estate owned by JPR as of theend of the 31st fiscal period (June 30, 2017).

Area Type

Property Name
Kanematsu Bldg.

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

Kanematsu Bldg. Annex

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

JPR Ningyo-cho Bldg.

17-4 Nihonbashi Ningyocho 1-chome, Chuoku, Tokyo

Shin-Kojimachi Bldg.

3-3 Kojimachi 4-chome, Chiyoda-ku, TokyoJPR Crest Takebashi Bldg.

21-4, etc., Kanda-Nishikicho 3-chome,
Chiyoda-ku, TokyoMS Shibaura Bldg.

13-23 Shibaura 4-chome, Minato-ku, Tokyo

Office2,450,520

2,630,000

1,972,134

2,710,000

2,462,415

3,310,000

3,273,764

3,290,000

11,059,074

11,700,000

2,982,464

2,630,000

5,210,199

5,080,000

2,860,651

4,840,000

13,441,422

14,400,000

19-1 Shinjuku 2-chome, Shinjuku-ku, Tokyo

Real estate

15,462,897

17,800,000

Across Shinkawa Bldg. Annex

Real estate

605,906

875,000

Real estate

22,171,744

15,000,000

Real estate

3,846,149

2,840,000

Shinagawa Canal Bldg.

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

Real estate

1,737,332

1,870,000

Rokubancho Bldg.

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

2,836,616

3,400,000

JPR Harajuku Bldg.

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

8,711,303

8,900,000

Tokyo Tatemono Kyobashi Bldg.

5,321,636

5,720,000

JPR Sendagaya Bldg.

6-18 Kyobashi 3-chome, Chuo-ku, Tokyo
11-12 Nihonbashi-Horidomecho 1-chome,
Chuo-ku, Tokyo
23-5 Sendagaya 4-chome, Shibuya-ku, Tokyo

Real estate
Beneficiaryinterest
Real estate
Beneficiaryinterest
Real estate

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

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

Science Plaza-Yonbancho Plaza

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

Shibadaimon Center Bldg.

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

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

JPR Shibuya Tower Records Bldg.

22-14 Jinnan 1-chome, Shibuya-ku, TokyoJPR Jingumae 432

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

Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
GINZA GATES

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

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Real estate

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

Real estate

3,321,567

3,060,000

5-14 Ginza 5-chome, Chuo-ku, Tokyo

10,130,956

10,800,000

FUNDES Suidobashi

20-8 Misakicho 2-chome, Chiyoda-ku, Tokyo

3,252,741

3,470,000

Arca East

2-1 Kinshi 3-chome, Sumida-ku, Tokyo

Real estate
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

4,317,563

6,240,000

2,256,022

1,660,000

2,487,472

2,290,000

1,441,444

1,850,000

6,885,813

8,250,000

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

Real estate

2,953,421

4,730,000

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

Beneficiaryinterest

2,884,212

3,510,000

Real estate

5,312,970

7,620,000

Real estate

5,487,693

6,250,000

Shinjuku Square Tower

Shinjuku Center Bldg.
Minami Azabu Bldg.

JPR Nihonbashi-horidome Bldg.

Retail

13,700,000

BYGS Shinjuku Bldg.

Oval Court Ohsaki Mark WestJPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Office14,685,270

Beneficiary interest

JPR Ichigaya Bldg.

Central Tokyo

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
14,400,000

Appraisal ValueBook Valueas of June 30, 2017as of June 30, 2017
(thousands of yen)(thousands of yen)
(Note 1)8-1 Nishi-Gotanda 2-chome, Shinagawa-ku,
Tokyo
7-15 Kudan-Minami 4-chome, Chiyoda-ku,
Tokyo
17-1 Higashi-Gotanda 2-chome, Shinagawaku, Tokyo
22-1 Nishi-Shinjuku 6-chome, Shinjuku-ku,
Tokyo13,441,422

Gotanda First Bldg.

Greater Tokyo

Location

Form ofOwnership

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

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

4,787,517

6,720,000

14,926,225

11,800,000

3,707,879

4,020,000

38,388,259

46,000,000

2,697,471

3,290,000

4,199,542

5,850,000

18,701,152

20,100,000

11,514,127

14,100,000

4,292,865

4,050,000

2,629,078

2,750,000

39

41

Asset Management Report

Area Type

Property NameTokyo Tatemono Yokohama Bldg.
Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.

RetailGreater Tokyo

OfficeOlinas Tower

JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.

OfficeOther Cities

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

RetailBenetton Shinsaibashi Bldg.

1-3 Taihei 4-chome, Sumida-ku, Tokyo
5-10 Kitasaiwai 1-chome, Nishi-ku,
Yokohama, Kanagawa
1-1, etc., Shimocho 2-chome, Omiya-ku,
Saitama, Saitama
1-1 Tanashicho 2-chome, Nishitokyo, Tokyo
1-1 Kawaguchi 1-chome, Kawaguchi,
Saitama
420-1,etc., Kosugimachi 3-chome, Nakaharaku, Kawasaki, Kanagawa
3-1 Bessho 7-come, Saitama, Saitama
8-3, etc., Ekimae-Honcho, Kawasaki,
Kanagawa
24 Yoneyama 1-chome, Chuo-ku, Niigata,
Niigata
4-8 Honmachi 3-chome, Chuo-ku, Osaka,Osaka
4-4 Hakataeki-mae 1-chome, Hakata-ku,
Fukuoka, Fukuoka
1-19 Matsuyama 1-chome, Naha, Okinawa
7-35 Tsutsujigaoka 3-chome, Miyagino-ku,
Sendai, Miyagi
31-1, etc., Misonocho 3-chome, Wakayama,
Wakayama
3-38 Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
1-23 Sonezaki-Shinchi 2-chome, Kita-ku,
Osaka, Osaka
24-15 Sakae 1-chome, Naka-ku, Nagoya,Aichi
1-1 Yakuin 1-chome, Chuo-ku, Fukuoka,
Fukuoka
2-11 Minami-Senba 4-chome, Chuo-ku,
Osaka, OsakaJPR Umeda Loft Bldg.

16-7 Chayamachi, Kita-ku, Osaka, Osaka

Housing Design Center Kobe

2-2 Higashi-Kawasakicho 1-chome, Chuo-ku,
Kobe, Hyogo

JPR Chayamachi Bldg.
Total(Note)

Location

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

Form ofOwnership

Appraisal ValueBook Valueas of June 30, 2017as of June 30, 2017
(thousands of yen)(thousands of yen)
(Note 1)

Real estate

27,737,040

36,700,000

Real estate

6,859,983

8,200,000

5,887,337

7,950,000

7,348,189

12,500,000

Real estate

1,731,150

2,750,000

Real estate

7,052,104

5,670,000

3,734,005

4,290,000

13,549,812

16,200,000

1,641,890

2,210,000

4,057,167

3,380,000

2,944,684

3,180,000

1,336,277

1,580,000

2,467,436

3,750,000

1,342,983

1,710,000

2,094,088

2,730,000

2,175,643

2,930,000

Real estate

3,903,484

2,810,000

Real estate

10,585,483

14,800,000

Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Beneficiaryinterest
Beneficiaryinterest

5,042,042

4,310,000

12,458,393

13,900,000

Real estate

6,225,425

7,120,000

Beneficiaryinterest

6,040,541

6,770,000

413,882,673

464,545,000

The appraisal values at end of period are either appraisal values or survey values by real estate appraisers, based on the Cabinet Office Order on “Regulations on
calculations of investment corporations.”

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

4240

OfficeCentral Tokyo

Area Type

Property Name

Kanematsu Bldg.
Kanematsu Bldg. Annex
JPR Ningyo-cho Bldg.
Shin-Kojimachi Bldg.
JPR Crest Takebashi Bldg.
MS Shibaura Bldg.
Gotanda First Bldg.
Fukuoka Bldg. (Note 3)
JPR Ichigaya Bldg.
Oval Court Ohsaki Mark West
Shinjuku Square Tower
BYGS Shinjuku Bldg.
Across Shinkawa Bldg. Annex
Shinjuku Center Bldg.
Minami Azabu Bldg.
Shinagawa Canal Bldg.
Rokubancho Bldg.
JPR Harajuku Bldg.
Tokyo Tatemono Kyobashi Bldg.

30th Fiscal Period
31st Fiscal Period(from Jul. 1, 2016 to Dec. 31, 2016)(from Jan. 1, 2017 to Jun. 30, 2017)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)10
100.0
362,644
2.4
10
100.0
378,9842.5
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
4
100.0
91,4120.6
4100.0
90,9330.6
17
100.0
106,425
0.7
17
100.0
104,5670.7
6
100.0
96,2940.6
6
100.0
107,320
0.7
10
100.0
385,124
2.5
10
100.0
416,3182.8
4100.0
119,2380.8
4100.0
124,7450.8
1100.0(Note 2) (Note 2)(Note 2) (Note 2)
－
－
10
100.0
162,8751.1
9
93.1
155,8621.0
2
100.0
182,6231.2
2
100.0
182,0831.2
25
99.9
355,3782.4
25
99.9
362,2742.4
25
98.1
557,1973.7
25
99.5
549,6193.7
4100.0
37,2580.2
4100.0
36,7380.2
33
94.1
490,4123.2
33
94.1
482,3133.2
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
4
89.9
49,0700.3
5100.0
58,9980.4
1100.0(Note 2) (Note 2)1
100.0(Note 2) (Note 2)
9
100.0
249,6541.7
9100.0
250,0251.7
8
89.1
213,6571.4
9100.0
192,598
1.3

Japan Prime Realty Investment Corporation

OfficeOfficeRetailOther Cities

RetailGreater Tokyo

RetailCentral Tokyo

OfficeArea Type

Property NameJPR Nihonbashi-horidome Bldg.
JPR Sendagaya Bldg.
Ginza Sanwa Bldg.
Otemachi Tower (Land with Leasehold
Interest)
Science Plaza-Yonbancho Plaza
Shibadaimon Center Bldg.
Tokyo Square Garden
JPR Shibuya Tower Records Bldg.
JPR Daikanyama (Note 4)
JPR Jingumae 432
Shinjuku Sanchome East Bldg.
Yurakucho Ekimae Bldg.
(Yurakucho Itocia)
GINZA GATESFUNDES Suidobashi
Arca East
JPR Chiba Bldg.
JPR Yokohama Nihon Odori Bldg.
Shinyokohama 2nd Center Bldg.
Kawaguchi Center Bldg.
JPR Ueno East Bldg.
Tachikawa Business Center Bldg.
Rise Arena Bldg.
Yume-ooka Office Tower
Olinas Tower
Tokyo Tatemono Yokohama Bldg.
Omiya Prime East
Tanashi ASTA
Cupo-la Main Bldg.
JPR Musashikosugi Bldg.
Musashiurawa Shopping Square
Kawasaki Dice Bldg.
Niigata Ekinan Center Bldg.
Tokyo Tatemono Honmachi Bldg.
JPR Hakata Bldg.
JPR Naha Bldg.
Sompo Japan Sendai Bldg.
Sompo Japan Wakayama Bldg.
Tenjin 121 Bldg.
JPR Dojima Bldg.
JPR Hakata-chuo Bldg. (Note 3)
JPR Nagoya Fushimi Bldg.
Yakuin Business Garden
Benetton Shinsaibashi Bldg.
JPR Umeda Loft Bldg.
Housing Design Center Kobe
JPR Chayamachi Bldg.
Total

30th Fiscal Period
31st Fiscal Period(from Jul. 1, 2016 to Dec. 31, 2016)(from Jan. 1, 2017 to Jun. 30, 2017)
RentalRentalRatio toRatio toOccupancy Revenues
Number Occupancy Revenues
Number of
Total
Total
Rate at throughoutof Tenants Rate atthroughout
Tenants at
RentalRentalPeriod End
Periodat Period Period End
PeriodPeriod End
Revenues
Revenues(%)(thousandsEnd(%)(thousands(%)(%)
of yen)of yen)5
88.1
181,8661.2
5
88.1
170,9441.1
6
100.0
262,6491.7
6100.0
275,1031.8
8
96.8
114,1010.8
9100.0
117,432
0.8
2

100.0

1,581,000

10.5

2

100.0

1,580,750

10.6

24
9
－
1
－
7
1

96.0
100.0
－
100.0
－
100.0
100.0

112,799
179,301－(Note 2)
10,331
83,892(Note 2)0.7
1.2－
(Note 2)0.1
0.6
(Note 2)

23
9
57
1
－
6
1

95.8
100.0
100.0
100.0
－
86.6
100.0

112,877
177,001
214,856(Note 2)－
83,560(Note 2)

0.8
1.2
1.4
(Note 2)－0.6
(Note 2)1100.0(Note 2)

(Note 2)1100.0(Note 2)

(Note 2)

7
6
6
36
12
20
44
9
19
1
38
14
14
4
1
1
1
3
29
8
7
43
21
15
14
15
8
6
3
18
9
1
1
6
679

100.0
100.0
100.0
92.0
94.8
94.1
100.0
100.0
97.6
100.0
100.0
98.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
89.5
99.8
100.0
100.0
100.0
98.3
66.4
100.0
95.0
99.9
87.6
100.0
100.0
100.0
98.6

19,055
9,027
239,555
125,824
122,327
101,164
413,945
178,228
145,908(Note 2)
329,459
1,017,555
298,756
266,988(Note 2)
(Note 2)
(Note 2)
126,996495,820
126,160
159,961
149,576
96,126
187,274
112,132
103,678
61,01780,972
138,365
473,910
721,703(Note 2)
(Note 2)
160,595
15,105,172

0.1
0.1
1.6
0.8
0.8
0.7
2.7
1.2
1.0
(Note 2)
2.2
6.7
2.0
1.8
(Note 2)
(Note 2)
(Note 2)
0.8
3.3
0.8
1.1
1.0
0.6
1.2
0.7
0.7
0.4
0.5
0.9
3.1
4.8
(Note 2)
(Note 2)
1.1
100.0

7
6
6
36
13
21
44
9
20
1
38
15
14
4
1
1
1
3
29
7
6
44
20
15
14
15
9
－
3
17
8
1
1
6
730

100.0
100.0
100.0
92.2
94.8
98.1
98.7
100.0
100.0
100.0
98.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.6
60.0
99.8
100.0
100.0
100.0
91.4
70.2
－
95.0
99.3
63.4
100.0
100.0
100.0
98.0

205,360
92,990263,156
127,133
117,923
100,344
412,939
179,162
149,765(Note 2)
330,101
1,007,903
294,877
264,538(Note 2)
(Note 2)
(Note 2)
126,996494,602121,293
142,520
149,275
95,780187,198
109,329
98,00988,156
46,835
137,249
456,513
133,421(Note 2)
(Note 2)
160,464
14,907,434

1.4
0.6
1.8
0.9
0.8
0.7
2.8
1.2
1.0
(Note 2)
2.2
6.8
2.0
1.8
(Note 2)
(Note 2)
(Note 2)
0.9
3.3
0.8
1.0
1.0
0.6
1.3
0.7
0.7
0.6
0.3
0.9
3.1
0.9
(Note 2)
(Note 2)1.1
100.0

(Note 1) The number of tenants at end of period is counted as follows except for Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science PlazaYonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg. and Kawasaki Dice Bldg.: when a single tenant leases multiple rooms, it is counted as one if the tenantuses the same property. If the leased rooms are in multiple buildings, the tenant is counted in plural.
The tenants of Shinjuku Square Tower, Shinjuku Center Bldg., the residential section of Science Plaza-Yonbancho Plaza, Tokyo Square Garden, Rise Arena Bldg.
and Kawasaki Dice Bldg. have sublet space to sublessees and lease agreements have been executed where the rent paid by the tenants fluctuates in accordance withthe lease conditions of the sublessees and thus the numbers of sublessees have been entered as the numbers of tenants.
(Note 2) JPR does not disclose the rental revenues of the properties throughout the period and their ratio to total rental revenues due to inevitable reasons.
(Note 3) JPR sold Fukuoka Bldg. and JPR Hakata-chuo Bldg. as of April 14, 2017.
(Note 4) JPR sold JPR Daikanyama as of September 29, 2016.

(4) Status of Other Assets
Beneficiary interests with real estate as major entrusted properties have been included in (3) Itemized Portfolio Assets above.
There were no additional major assets that are main investment targets of JPR other than those listed under (3) above as of the end of
the 31st fiscal period.

4143

Asset Management Report

4. Capital Expenditures of Owned Real Estate(1) Planned Capital Expenditures
The following are major items of capital expenditures for currently planned renovations, etc. for JPR-owned real estate and entrusted
real estate regarding beneficiary interests in real estate. Furthermore, the planned construction expenses include portions that areclassified as expenses in accounting.

Property Name

Location

PurposeKawaguchi Center
Bldg.
Benetton Shinsaibashi
Bldg.

Kawaguchi City,
SaitamaOsaka City,
Osaka
Sumida Ward,
Tokyo
Sumida Ward,Tokyo
Kawasaki City,
Kanagawa

1st through 4th phases of replacement of air
conditioning units
Replacement of air conditioning units on 1st
basement floor and 1st through 3rd floors
2nd phase of replacement of lighting equipmentwith LED lamps on 4th through 17th floors
Reinforcement of elevators against long-period
ground motion
Replacement of fire alarm receivers and smoke
prevention and exhausting boards

Olinas Tower
Olinas Tower
JPR Musashikosugi
Bldg.

Planned (millions of yen)
Payment
AmountTotal
duringAlreadyValue
the 31st
Paid
Fiscal Period

Schedule

Jun. 2017~Mar. 2020

797

－

1

Jul. 2017~Aug. 2017

91

－

－

Jul. 2017~Nov. 2017

86

－

－

Sept. 2017~Dec. 2017

65

－

－

Sept. 2017~Dec. 2017

36

－

－

(2) Capital Expenditures during the 31st Fiscal Period
The following are the capital expenditure amounts JPR invested in real estate and entrusted real estate during the 31st fiscal period.
Among major capital expenditures, JPR conducted replacement of air conditioning units to maintain and enhance tenant satisfaction,
as well as renovation of common-use areas and installation of office automation floors for leased offices with the aim of attracting new
tenants. In addition, aside from these constructions, JPR conducted construction of 251 million yen (Note), which was appropriated as
expenditures for repair and maintenance.
Property Name

Location

Olinas Tower

Sumida Ward, TokyoJPR Chayamachi Bldg.

Osaka City, OsakaMS Shibaura Bldg.

Minato Ward, Tokyo

Across Shinkawa Bldg.
Annex

Chuo Ward, Tokyo

Construction
Expenses(millions of yen)

Purpose

Period

1st phase of replacement of lighting
equipment with LED lamps on 4th
through 17th floors

Apr. 2017~Jun. 2017117

Nov. 2016~Jun. 2017107

Feb. 2017~Apr. 201748

Mar. 2017~Jun. 201713

Replacement of air conditioning
units in common areas on 1st
through 8th floors and in exclusive
areas on 4th through 9th floors
Replacement of air conditioning
unit on half of 6th floor
Repair of exterior walls

Repair of common areas, installation of office automation floors,
replacement of air conditioning units, etc.
Total

Other Properties

276
563

(Note) Expenditures for repair and maintenance included 5 million yen of construction management fees paid to construction management companies as well as the amounts
for repair and maintenance constructions themselves.

(3) Amounts Reserved for Long-Term Repairs and Maintenance Plans
JPR has deposited the following amounts from the redundant cash flow (including one accompanying internal reserve of profits) suchas depreciation in order to conduct large-scale repairs and maintenance work, based on medium- to long-term repairs and maintenanceplans for individual properties.
Operation Period
Balance of deposits at
beginning of current period
Deposits during the period
Amounts used from
deposits during the period
Deposits carried forward to
the next period

4442(Millions of yen)

27th Fiscal Period(Jan. 1, 2015 Jun. 30, 2015)

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

29th Fiscal Period(Jan. 1, 2016 Jun. 30, 2016)

30th Fiscal Period(Jul. 1, 2016 Dec. 31, 2016)

31st Fiscal Period(Jan. 1, 2017 Jun. 30, 2017)

877

934

940

936

931

473

276

494

393

479

416

270

498

398

335

934

940

936

931

1,075

Japan Prime Realty Investment Corporation

5. Expenses and Liabilities(1) Details of Expenses Related to Management(Thousands of yen)
30th Fiscal Period(Jul. 1, 2016 - Dec. 31, 2016)

Item

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

532,074
75,000266,670
190,403
77,0476,600
30,72399,262745,707(a) Asset Management Fees (Note)
Fixed compensation
Incentive-based compensation 1
Incentive-based compensation 2(b) Administrative Service and Custodian Fees(c) Directors' Fee(d) Trust Fees(e) Other Expenses
Total

552,61675,000265,043
212,572
77,7936,600
31,023102,953
770,987(Note) Aside from the amounts of the asset management fees entered above, fees for asset management of the acquired properties (30th fiscal period: 33,375 thousand yen,
31st period: 46,000 thousand yen) have been paid and included in the book value of each property.

(2) Status of Loans Payable
As of June 30, 2017 JPR has the following loans payable.

Short-Term
Loans
PayableCategory

LenderMizuho Bank, Ltd. (Note 6)0.230%Jul 5, 2017

Mar. 30, 2017

Oct. 24, 2016

7,000

－

7,000

－

Total
Mar. 30, 2012

Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Dec. 5, 2012
Nov. 27, 2013

Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Jun. 27, 2014
Mar. 11, 2015

Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Mar. 24, 2015
Feb. 4, 2016
Mar. 30, 2017

Mizuho Bank, Ltd.
Mar. 30, 2017
Bank of Tokyo-Mitsubishi UFJ, Ltd. Aug. 8, 2012

Long-Term Loans Payable

Repayment
Date

Balance as ofJan. 1, 2017
(millions ofyen)

Mizuho Bank, Ltd.

Mizuho Bank, Ltd.

Average
Balance as ofInterest
Jun. 30, 2017
Rate (%)(millions of(Note 1)yen)
(Note 2)

Drawdown
Date

Bank of Tokyo-Mitsubishi UFJ, Ltd.
Bank of Tokyo-Mitsubishi UFJ, Ltd.

Aug. 8, 2012
Sept. 5, 2012

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Dec. 5, 2012

Bank of Tokyo-Mitsubishi UFJ, Ltd. Nov. 27, 2013
Bank of Tokyo-Mitsubishi UFJ, Ltd. Jun. 27, 2014

7,000

－

1.093%

2,000
3,000

2,000
3,000

1.027%
0.970%

5,000
2,000

5,000
2,000

1.178%
1.011%

2,000

2,000

1.056%

Mar. 24, 2025

5,000
－

5,000
3,000

0.804%
0.351%

Feb. 4, 2026
Mar. 30, 2021

－
1,000

4,000
1,000

0.400%
1.178%

Mar. 30, 2022
Aug. 8, 2019

1,000
3,000

1,000
3,000

0.948%
0.919%

1,000

1,000

1.027%

3,000
4,000

3,000
4,000

0.970%
0.889%

5,000

5,000

0.510%

Mar. 25, 2024

Repayment
MethodUse

Principal lump
sum repayment on (Note 3)
maturity

Remarks
Unsecured/
Unguaranteed/
Non-SubordinatedDec. 5, 2019Nov. 27, 2020
Jun. 27, 2023
Mar. 11, 2024

Aug. 8, 2017
Sept. 5, 2017
Dec. 5, 2019
Principal lump
Nov. 27, 2020 sum repayment onmaturityJun. 25, 2021

Bank of Tokyo-Mitsubishi UFJ, Ltd. Mar. 25, 2016
Sumitomo Mitsui Banking
Mar. 30, 2012
Corporation

6,400

－

1.093%

Mar. 30, 2017

Sumitomo Mitsui Banking
Corporation

Dec. 5, 2012

1,000

1,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking
Corporation

Jun. 27, 2013

3,000

3,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking
Corporation

Jun. 27, 2014

2,500

2,500

1.033%

Jun. 27, 2022

Sumitomo Mitsui Banking
Corporation

Mar. 30, 2017

－

2,000

0.351%

Mar. 30, 2021

Sumitomo Mitsui Banking
Corporation

Mar. 30, 2017

－

4,000

0.400%

Mar. 30, 2022

Development Bank of Japan Inc.

Jun. 26, 2009
Jun. 27, 2013
Dec. 5, 2013

2,500

2,400

3.190%

Jun. 27, 2019

Development Bank of Japan Inc.
Development Bank of Japan Inc.

820

820

1.449%Development Bank of Japan Inc.

Mar. 24, 2015

Development Bank of Japan Inc.
Shinsei Bank, Ltd.

Dec. 15, 2016
Apr. 5, 2012

2,000
2,000

2,000
2,000

1.188%
1.056%

Shinsei Bank, Ltd.

Sept. 24, 2013

3,000
5,000

3,000
5,000

0.843%
1.397%

2,000

2,000

Jun. 25, 2021
Dec. 3, 2021
Mar. 24, 2025
Jun. 14, 2027
Apr. 5, 2019

(Note 3)

Unsecured/
Unguaranteed/
Non-Subordinated(Note 4)

Principal lump
sum repayment onmaturity

1.076% Sept. 24, 2020

4345

Asset Management Report

Long-Term Loans Payable

Category

LenderDrawdown
Date

Balance as ofJan. 1, 2017
(millions ofyen)

Average
Balance as ofInterest
Jun. 30, 2017
Rate (%)(millions of(Note 1)yen)
(Note 2)

Repayment
Date

Shinsei Bank, Ltd.

Dec. 5, 2014

2,000

2,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking
Corporation
Aozora Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.843%

Jun. 14, 2027

Aug. 29, 2011

5,000

5,000

1.184%

Aug. 29, 2017

Aug 31, 2015

1,000

1,000

0.873%

Aug. 31, 2023

Dec. 15, 2016

2,000

2,000

0.633%

Dec. 13, 2024

Jul. 3, 2012

900

900

0.994%

Jul. 3, 2017

Aozora Bank, Ltd.

Aug. 8, 2012

2,000

2,000

1.178%

Aug. 8, 2019

Aozora Bank, Ltd.

Aug. 27, 2012

2,000

2,000

0.985%

Aug. 25, 2017

Aozora Bank, Ltd.

Aug. 30, 2012

2,000

2,000

1.146%

Aozora Bank, Ltd.

Sept. 30, 2013

1,000

1,000

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2012

4,000

－

Mizuho Trust & Banking Co., Ltd.

Feb. 4, 2013

3,000

3,000

1.076%

Feb. 4, 2020

Mizuho Trust & Banking Co., Ltd.

Mar. 30, 2017

－

4,000

0.309%

Mar. 30, 2020
Dec. 5, 2018

Repayment
MethodRemarks(Note 3)

Unsecured/
Unguaranteed/
Non-SubordinatedPrincipal lump
Aug. 30, 2018 sum repayment onmaturity
1.069% Sept. 24, 2020
1.093% Mar. 30, 2017

Shinkin Central Bank

Dec. 5, 2013

3,000

3,000

0.689%

Shinkin Central Bank

Dec. 15, 2016

2,000

2,000

0.388%The Bank of Fukuoka, Ltd.

Sept. 24, 2013

1,000

1,000

The Bank of Fukuoka, Ltd.

Oct. 9, 2015

2,000

2,000

The Bank of Fukuoka, Ltd.
Meiji Yasuda Life Insurance
Company
Meiji Yasuda Life Insurance
Company
The Nishi-Nippon City Bank, Ltd.

Jul. 7, 2016

2,000

2,000

0.480%

Jul. 7, 2026

Jun. 21, 2011

3,340

3,274

1.800%

Jun. 21, 2018

Feb. 5, 2015

1,000

1,000

1.042%

Feb. 5, 2025

May 27, 2016

3,000

3,000

0.646%

May 27, 2026

The Nishi-Nippon City Bank, Ltd.

Dec. 15, 2016

1,000

1,000

0.388%ORIX Bank Corporation

Feb. 4, 2013

1,000

1,000

0.786%

Dec.14, 2021
Feb. 5, 2018

ORIX Bank Corporation

Nov. 27, 2013

2,000

2,000

0.762%

May 27, 2019The Shinkumi Federation Bank

Feb. 4, 2013

3,000

3,000

0.786%

Taiyo Life Insurance Company

Jun. 4, 2013

1,000

1,000

0.949%

Feb. 5, 2018
Jun. 4, 2018

Taiyo Life Insurance Company

Dec. 27, 2013

1,000

1,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

Sept. 24, 2015

1,000

1,000

The Chugoku Bank, Ltd.

Sept. 24, 2013

1,000

1,000

0.969% Sept. 24, 2024
0.758% Sept. 25, 2018

The Chugoku Bank, Ltd.

Oct. 9, 2015

2,000

2,000

0.816%

Oct. 6, 2023

The Norinchukin Bank

Dec. 5, 2014

1,000

1,000

0.440%

Dec. 5, 2017

The Norinchukin Bank

Dec. 15, 2016

2,000

2,000

0.388%

Dec. 14, 2021

Sumitomo Life Insurance Company
National Mutual Insurance
Federation of Agricultural
Cooperative
Sompo Japan Nipponkoa InsuranceInc.

Oct. 11, 2016

2,000

2,000

0.453%

Principal lump
Oct. 11, 2024 sum repayment on

Dec. 15, 2016

2,000

2,000

0.388%

Dec. 14, 2021

Dec. 25, 2015

2,000

2,000

0.759%

Dec. 25, 2023

The Hachijuni Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.489%

Oct. 9, 2020

The Hachijuni Bank, Ltd.

Sept. 26, 2016

1,000

1,000

0.209% Sept. 24, 2021

Resona Bank, Limited

Mar. 30, 2012

2,000

－

1.093%

Mar. 30, 2017

Resona Bank, Limited

Mar. 30, 2017

－

2,000

0.438%

Sept. 30,
2022

The Iyo Bank, Ltd.

Oct. 9, 2015

1,000

1,000

0.816%

Daido Life Insurance Company
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
Sumitomo Mitsui Trust Bank,
LimitedDec. 27, 2013

1,000

1,000

0.710%

Oct. 6, 2023
Dec. 27, 2018

Dec. 27, 2013

1,000

1,000

0.710%

Dec. 27, 2018

Mar. 25, 2016

1,000

1,000

0.691%

Mar. 25, 2026

147,460

146,894

Total

Use

Dec. 14, 2021
0.911% Sept. 24, 2019
0.816% Oct. 6, 2023
(Note 5)maturity(Note 1) The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loan arrangement
paid to the above lenders are not included.
(Note 2) Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
(Note 3) Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemption of
investment corporation bonds.
(Note 4) The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter on the 27th day of every 6 months. In addition, repayment of
2,100 million yen will be made on maturity date June 27, 2019.
(Note 5) The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter on the 27th day of every 6 months. In addition, repayment of 3,208
million yen will be made on maturity date June 21, 2018.
(Note 6) JPR made early repayment of the 7,000 million yen in short-term loans payable on January 24, 2017, which was borrowed on October 24, 2016 from Mizuho Bank,
Ltd.

4644

Japan Prime Realty Investment Corporation(3) Investment Corporation Bonds
Details of JPR’s investment corporation bonds outstanding as of June 30, 2017 are as follows.
Balance as of
Balance as of
CouponRate
Jan. 1, 2017
Jun. 30, 2017(%)
(millions of yen) (millions of yen)

Name

Issue Date

Seventh Series ofInvestment
Corporation Bonds

Dec. 14, 2006

4,500

4,500

2.900

Dec. 14, 2026

Fourteenth Series ofInvestment
Corporation Bonds

Oct. 25, 2011

2,000

2,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

5,000

5,000

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds

Nov. 22, 2012

2,000

2,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds

May 31, 2013

5,000

5,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds

May 31, 2013

2,000

2,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds

Feb. 5, 2014

5,000

5,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds

Jul. 22, 2014

2,000

2,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds

Jul. 22, 2014

4,000

4,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds

Dec. 4, 2014

3,000

3,000

0.831

Dec. 4, 2024

34,50034,500

Total

Maturity Date

Redemption
MethodUse

Remarks

Bulletrepayment(Note 1)

(Note 2)

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

(4) Subscription Rights to Shares
Not applicable45

47

Asset Management Report

6. Acquisitions and Sales during the 31st Fiscal Period(1) Acquisition and Sale of Real Estate and Asset-Backed Securities, etc.
Acquisition

Acquisition Date

Tokyo Square Garden

February 1, 2017

9,200,000

－

－

－

－

－

－

Tokyo Square Garden

April 4, 2017

9,200,000

－

－

－

－

－

－

Fukuoka Bldg.

－－

April 14, 2017

3,100,000

2,984,311

115,688700

114,988

JPR Hakata-chuo Bldg.

－－

April 14, 2017

1,900,000

1,803,549

96,450700

95,750

Total

－

－

5,000,000

4,787,861

212,138

1,400

210,738

Type of Asset

Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest
Beneficiaryinterest

Sale

AcquisitionPrice(thousands ofyen)(Note)

Real Estate Name

Sale Date

18,400,000

Sale Price Book Value Difference
Sale
Sale Profit
(A)
(B)
(C)
Expense and Loss(thousands (thousands of (A)-(B)(D)(C)-(D)of yen)yen)(thousands (thousands (thousands(Note)(Note)
of yen)of yen)of yen)(Note) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.

(2) Acquisition and Sale of Other Assets
JPR made no acquisition or sale of other assets in the 31st fiscal period.

(3) Survey on Values of Specified Assets, etc.
Acquisition orType of Asset
Sale

Acquisition
Sale
Sale

Real Estate NameTransaction Date
(Note 1)

BeneficiaryTokyo Square

February 1, 2017 (50%)

interest

GardenApril 4, 2017 (50%)

Fukuoka Bldg.

Beneficiaryinterest
Beneficiary

JPR Hakata-chuointerest

Bldg.

Acquisition Price Real Estate
or Sale Price Appraisal Value(Note 2)
(Note 3)(thousands of(thousands of
yen)
yen)
18,400,000

20,000,000

April 14, 2017

3,100,000

3,040,000

April 14, 2017

1,900,000

1,780,000

Real Estate Appraiser

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute

Appraisal Date

December 15, 2016
December 1, 2016
December 1, 2016

(Note 1) The percentage figures in parenthesis for Transaction Date represent the ratios of portions against the total acquisition (100%) as of the respective transaction
dates.
(Note 2) Values of Acquisition Price or Sale Price are amounts (transaction price indicated in the transaction contract, etc.) excluding expenses (such as real estatetransaction brokerage fees) required for acquisition or sale of the relevant real estate.
(Note 3) The appraisal in the table above was conducted by applying to the “Real Estate Appraisal Standards, Specific Thesis Chapter 3: Appraisal on Prices of Real Estate
Subject to Securitization.”

4846

Japan Prime Realty Investment Corporation(4) Transactions with Interested Parties and Major Shareholders
1) Transaction Status(Thousands of yen)Transaction Amount, Etc.
Category
Purchase Amount, Etc.

Sale Amount, Etc.

18,400,000

Total

5,000,000

Breakdown of transactions with interested parties
Tokyo Tatemono Co., Ltd.
Total

－

(－%)

5,000,000(100.0%)－(－%)

5,000,000(100.0%)2) Value of Fee Expenses
Category

Total Paid Fees
(A)

Property brokerage fees

184,000

Management Fees (Note 2)

272,195

Outsourcing Fees

577,318

Tenant Brokerage Fees

33,831

Breakdown of Transaction with Interested Parties and Major
Shareholders
Paid Party
Paid Amount (B)Tokyo Tatemono Real Estate Sales Co., Ltd.
184,000
Tokyo Tatemono Co., Ltd.
233,888
Prime Place Co., Ltd.
2,910
Tokyo Tatemono Co., Ltd.
445,269
Prime Place Co., Ltd.
4,502
Tokyo Tatemono Co., Ltd.
12,443(Thousands of yen)
Ratio to Total
Amount(B/A))
100.0%
85.9%
1.1%
77.1%
0.8%
36.8%

(Note 1) Interested parties and major shareholders refer to the interested parties of the asset management company who has concluded an asset management agreement with
JPR and is regulated as designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and article 26-1-27 of theregulation on management reports in regard to investment trusts and investment corporations of The Investment Trusts Association, Japan.
(Note 2) The management fees indicated in the above table include construction management fees (total of 12,692 thousand yen) appropriated as assets and not handled as
expenses.
(Note 3) Aside from transactions indicated in the above table, JPR paid the following amounts for repairs, etc. conducted by below parties who are interested parties or major
shareholders during the 31st fiscal period.
Tokyo Tatemono Co., Ltd.
Prime Place Co., Ltd.
Tokyo Real Estate Management Co., Ltd.

274,470 thousand yen
153 thousand yen
267,600 thousand yen(5) Transactions with the Asset Management Company regarding Concurrent
Work Conducted by the Asset Management Company
Tokyo Realty Investment Management, Inc., the asset management company of JPR, does not concurrently conduct any of the class 1
financial instruments transaction business, class 2 financial instruments transaction business, land and building transaction business,or real estate syndication business, and has no such transactions with JPR.

7. Overview of Accounting(1) Assets, Liabilities, Principal, and Profits and Loss
Please refer to the Balance Sheets, Statements of Income and Retained Earnings, Statements of Unitholders' Equity and Notes toFinancial Statements as well as Distribution Information on later pages of this report.

(2) Changes in Calculation Method of Depreciation
No change has been made.

(3) Changes in Valuation Method of Real Estate
No change has been made.

4749

Asset Management Report

8. Overview of Self-Managed Investment Trust Beneficiary(1) Acquisition
Tokyo Realty Investment Management, Inc., the asset management company of JPR, acquired and holds JPR’s investment units as
indicated below.
Acquisition Date

Number of Units Acquired

Number of Units Disposed

Number of Units Held

September 14, 2001

40

－

40

January 22, 2002 (Note)

60

－

100

Accumulated Total

100

－

100

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

(2) Units Held
Number of Units Held at End
of Period

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

Ratio to Total Units Issued
and Outstanding (%)

22nd Fiscal Period(Jul. 1, 2012 – Dec. 31, 2012)

100

20

0.0

23rd Fiscal Period(Jan. 1, 2013 – Jun. 30, 2013)

100

20

0.0

24th Fiscal Period(Jul. 1, 2013 – Dec. 31, 2013)

100

20

0.0

25th Fiscal Period(Jan. 1, 2014 – Jun. 30, 2014)

100

20

0.0

26th Fiscal Period(Jul. 1, 2014 – Dec. 31, 2014)

100

20

0.0

27th Fiscal Period(Jan. 1, 2015 – Jun. 30, 2015)

100

20

0.0

28th Fiscal Period(Jul. 1, 2015 – Dec. 31, 2015)

100

20

0.0

29th Fiscal Period(Jan. 1, 2016 – Jun. 30, 2016)

100

20

0.0

30th Fiscal Period(Jul. 1, 2016 – Dec. 31, 2016)

100

20

0.0

31st Fiscal Period(Jan. 1, 2017 – Jun. 30, 2017)

100

20

0.0

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

50

49

Japan Prime Realty Investment Corporation

9. Disclosure on Corporation Owning Foreign Real Estate
Not applicable

10. Disclosure on Real Estate Owned by Corporation Owning Foreign RealNot applicable

11. Other(1) Notice
Major issues related to the execution and modification, etc. of major agreements approved at JPR’s Board of Directors meeting in the
31st fiscal period include the following:
Date of Board of Directors Meeting

January 17, 2017

Approved Item

Overview

Execution of New Investment Units Underwriting
Agreement and New Investment Unit Purchase
Agreement related to the Greenshoe Option

With regard to the additional issuance of new
investment units approved at the Board of Directors
meeting held on January 6, 2017, the administrative
services related to the offering of these investment units
were outsourced to the underwriters consisting ofMizuho Securities Co., Ltd. and 4 other firms (Note). To
tie a greenshoe option to the additional issuance of theinvestment units, JPR and Tokyo Realty Investment
Management, Inc. executed a New Investment Unit
Purchase Agreement related to the Greenshoe Option
with Mizuho Securities.

(Note) SMBC Nikko Securities Inc., Nomura Securities Co., Ltd., Daiwa Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

(2) Other
Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to the nearest specified unit inthis asset management report.

50

51

Financial Statements(1) Balance Sheets(Thousands of yen)
End of 30th Fiscal Period(Dec. 31, 2016)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net*117,896,631
12,075,668
319,276
157,568
9,075

18,984,868
12,108,948
376,472
121,120
8,407

30,458,219

31,599,817

57,346,890(14,201,649)

57,592,652(15,005,148)

43,145,241*1

42,587,503

Buildings in trust
Accumulated depreciation

88,897,226(29,702,517)

90,040,896(30,248,556)

Buildings in trust, net

59,194,709

59,792,339

49,920(18,152)

49,920(19,449)

Structures
Accumulated depreciation
Structures, net
Structures in trust
Accumulated depreciation

31,76730,471

120,517(77,245)

125,868(74,446)

Structures in trust, net

43,272

51,421

Machinery and equipment
Accumulated depreciation

748,404(419,479)

754,459(439,262)

Machinery and equipment, net*1

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

328,925*1

315,197

1,677,053(1,301,826)

1,711,632(1,305,431)

375,227

406,201

75,134(38,879)

75,824(42,528)

Tools, furniture and fixtures, net

36,25433,295Tools, furniture and fixtures in trust
Accumulated depreciation

186,096(125,281)

196,046(128,589)

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

52

End of 31st Fiscal Period(Jun. 30, 2017)60,814*1

106,890,048
176,493,700－
8,489

67,456*1

106,890,048
189,014,043
366
3,315

386,608,451

399,191,661

14,689,483
1,593

14,689,483
1,528

14,691,077

14,691,012

297,969
86,527347,227
60,679384,497

407,906

401,684,026

414,290,580

143,222
22,078126,003
51,925

165,300

177,929432,307,546

446,068,327

51

Japan Prime Realty Investment Corporation(Thousands of yen)
End of 30th Fiscal Period(Dec. 31, 2016)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Current portion of investment corporation bonds
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust*1

Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry

2,476,880
7,000,000
32,632,000
5,000,000
665,717
88,498605
217,870
2,683,275

1,853,498－
21,374,000
10,000,000
673,408
81,184605
163,333
2,733,053

50,764,846

36,879,083

29,500,000
114,828,000
7,672,848
12,902,843

24,500,000
125,520,000
7,756,073
12,802,062*1

164,903,691

170,578,136

215,668,538

207,457,219

210,395,598

231,653,198

73,94673,946

Total voluntary reserve

73,94673,946

Unappropriated retained earnings(undisposed losses)

6,169,462

6,883,962

Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

52

End of 31st Fiscal Period(Jun. 30, 2017)*3

6,243,409

6,957,909

216,639,008

238,611,107

216,639,008
432,307,546*3

238,611,107
446,068,327

53

Financial Statements(2) Statements of Income and Retained Earnings(Thousands of yen)
30th Fiscal Period(Jul. 1, 2016 - Dec. 31, 2016)
Operating revenue
Rent revenue-real estate*1

15,105,172*1

Gain on sale of real estate

*2

584

*2

15,105,757

Total operating revenue
Operating expenses
Expenses related to rent business
Loss on sale of real estate
Asset management fee
Administrative service and asset custody fees
Directors' compensation
Trust fees
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Income on settlement of management association accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Other

*1
*2

6,898,364
300,521532,074
77,0476,600
30,72399,262

14,907,434
210,738
15,118,172*1

6,599,215－
552,616
77,7936,600
31,023102,953

7,944,593

7,370,203

7,161,163

7,747,969

233
3,147
4,329

161
88,589
7,776

7,709

96,527

703,974
55,202
227,821
20,2957,650
527

682,40944,127
204,596
17,21814,892
13,242

1,015,472

976,487

Ordinary income

6,153,400

6,868,008

Income before income taxes

Total non-operating expenses

54

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

6,153,400

6,868,008

Income taxes-current

605

605

Total income taxes

605

605

Net income

6,152,795

6,867,403

Retained earnings brought forward
Unappropriated retained earnings (undisposed losses)

16,666
6,169,462

16,5586,883,962

53

Japan Prime Realty Investment Corporation(3) Statements of Changes in Unitholders’ Equity(Thousands of yen)
30th Fiscal Period(Jul. 1, 2016 - Dec. 31, 2016)

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

210,395,598

210,395,598－

21,257,600

Unitholders' equity
Unitholders' capital
Balance at beginning of current period
Changes of items during the period
Issuance of units
Total changes of items during the period
Balance at end of current period
Surplus
Voluntary reserve
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period－

21,257,600

210,395,598

231,653,198

73,94673,946－－73,94673,946

5,914,654

6,169,462(5,897,988)
6,152,795(6,152,904)
6,867,403

Unappropriated retained earnings (undisposed losses)
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total surplus
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period

254,807714,499

6,169,462

6,883,962

5,988,601

6,243,409

254,807714,499

Balance at end of current period

6,243,409

6,957,909

Total unitholders' equity
Balance at the beginning of current period

216,384,200

216,639,008

Changes of items during the period
Total changes of items during the period

254,807

21,972,099

Balance at end of current period

216,639,008

238,611,107

Total net assets
Balance at beginning of current period
Changes of items during the period

216,384,200

216,639,008

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

54

254,807

21,972,099

216,639,008

238,611,107

55

Financial Statements(4) Statements of Cash Distributions
30th Fiscal Period(July 1, 2016 - December 31, 2016)
I.
II.

Unappropriated retained earnings
Distribution amount(Distribution amount per unit)

III.

Voluntary reserve
Provision of reserve for reduction entry

IV.

Retained earnings carried forward

Method for calculating distribution amount56

31st Fiscal Period(January 1, 2017 - June 30, 2017)

6,169,462,812 yen
6,152,904,000 yen(7,048 yen)

6,883,962,296 yen
6,657,599,000 yen(7,213 yen)－
16,558,812 yen

210,409,484 yen
15,953,812 yen

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,152,904,000
yen, which is the largest integral multiple ofthe number of investment units issued andoutstanding (873,000 units) in an amount notin excess of unappropriated retained earnings
while minimizing the burden to unitholders
incurred by accrual of corporate income tax,
etc. Furthermore, JPR shall not distribute cash
in excess of earnings as stipulated in Article 30(4) of the Articles of Incorporation.

Pursuant to the policy on cash distributions
provided in Article 30 (2) of the Articles ofIncorporation of JPR, the distribution amountshall be in excess of an amount equivalent to
90% of the “distributable income amount” asstipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation, but nomore than the amount of earnings. Based onsuch policy, JPR decided to pay out
distributions of earnings of 6,657,599,000
yen, which is the largest integral multiple ofthe total number of investment units issued
and outstanding (923,000 units) from thebalance of unappropriated retained earnings
after deducting the provision of reserve for
reduction entry pursuant to Article 66-2 of the
Act on Special Measures Concerning
Taxation, to the extent of minimizing theburden to unitholders incurred by accrual of
corporate income tax, etc. Furthermore, JPR
shall not distribute cash in excess of earnings
as stipulated in Article 30 (4) of the Articles ofIncorporation.

55

Japan Prime Realty Investment Corporation(5) Statements of Cash Flows(Thousands of yen)
30th Fiscal Period(Jul. 1, 2016 - Dec. 31, 2016)

31st Fiscal Period(Jan. 1, 2017 - Jun. 30, 2017)

6,153,400

6,868,008

1,884,057
20,295

1,907,957
17,218

Amortization of investment unit issuance expenses
Interest income

7,650
(233)

14,892(161)

Interest expenses
Decrease (increase) in operating accounts receivable

931,796
76,364

887,006(57,196)

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs

Decrease (increase) in prepaid expenses(35,049)

36,447

Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other258,291
77,573(394,719)
7,613

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(38,874)(56,330)(54,536)
49,777

Decrease in property, plant and equipment

2,184,252

Decrease in property, plant and equipment in trust
Other, net－(217,740)－
4,787,861(260,933)

11,245,455

13,809,236

233(937,370)

161(894,320)

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

(258)

(593)

Net cash provided by (used in) operating activities

10,308,059

12,914,482

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust(392,949)(3,625,015)(243,199)(19,277,371)(9,895,373)

Purchase of intangible assets
Payments of lease and guarantee deposits
Repayments of tenant leasehold and security deposits(56,357)(105,669)－(49,257)(86,515)

Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust

175,572(187,965)

169,740(115,575)

Proceeds from tenant leasehold and security deposits in trust

399,505

314,145(13,688,253)(19,288,034)

Proceeds from short-term loans payable

7,000,000

Repayment of short-term loans payable
Proceeds from long-term loans payable－
18,000,000－(7,000,000)
19,000,000

Repayment of long-term loans payable(5,166,000)(7,000,000)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Redemption of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid－
(5,896,510)

Net cash provided by (used in) financing activities

6,937,489(19,566,000)－
21,212,859(6,151,791)
7,495,067

Net changes in cash and cash equivalents

3,557,295

1,121,516

Cash and cash equivalents at beginning of current period

26,415,004

29,972,299

Cash and cash equivalents at end of current period

56*129,972,299*1

31,093,816

57

Financial Statements(6) Notes to Financial Statements(Basis of Presenting Financial Statements)
Japan Prime Realty Investment Corporation (JPR) maintains its accounting records and prepares its financial statements in accordancewith accounting principles generally accepted in Japan (Japanese GAAP), including provisions set forth in the Financial Instruments
and Exchange Act of Japan, the Act on Investment Trusts and Investment Corporations (ITA), the Companies Act and the related
regulations, which are different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
The accompanying financial statements are basically a translation of the financial statements of JPR, which were prepared inaccordance with Japanese GAAP. In preparing the accompanying financial statements, certain reclassifications have been made to thefinancial statements issued domestically in order to present them in a format which is more familiar to readers outside Japan. In addition,
the notes to financial statements include information which might not be required under Japanese GAAP but is presented herein as
additional information.
JPR’s accounting periods end at the end of June and December.

(Significant Accounting Policies)
1. Depreciation Method for Property
and Equipment

2. Accounting for Deferred Assets

3. Standards for Recording
Revenues and Expenses

4. Scope of Cash and Cash
Equivalents in the Statements ofCash Flows
5. Other Significant Items
Fundamental to Preparing the
Financial Statements

58(1) Property and Equipment (including entrusted properties)
Depreciation is calculated using the straight-line method. The estimated useful lives of major property andequipment ranges are as follows:
Buildings ……………………… 3 - 65 years
Structures …………………….. 10 - 35 years
Machinery and equipment …….. 3 - 17 years
Tools, furniture and fixtures ….. 3 - 20 years
Assets with acquisition prices of 100,000 yen or more but less than 200,000 yen are depreciated over three years
based on the Corporation Tax Act.
(2) Intangible Assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method over the redemption
periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized utilizing the straight-line method over three years.
Accounting Treatment of Taxes on Property and Equipment
In connection with property taxes, city planning taxes and depreciated asset taxes, JPR uses the method of
charging the corresponding amounts of assessed taxes to the current fiscal period as real estate rental expenses.
Furthermore, JPR included an amount equivalent to the property taxes paid to the sellers during the first fiscal
period as an acquisition cost, not as expenses, in connection with the acquisition of real estate or entrusted
beneficiary interests in real estate as entrusted property. Taxes on property and equipment amounted to 503,317
thousand yen for the fiscal periods ended December 31, 2016 and amounted to 70,461,229 thousand yen for the
fiscal periods ended June 30, 2017.
Cash and cash equivalents in the Statements of Cash Flows include the following(1) Cash on hand and cash in trust(2) Deposits placed with banks and deposits in trust that can be withdrawn at any time(3) Short-term investments that are readily convertible to cash and have insignificant risk of price fluctuations andhave original maturities of three months or less from the acquisition date.
(1) Accounting Policies on Trust Beneficiary Interests in Real Estate as Property in Trust
Regarding trust beneficiary interests in real estate, all asset and liability accounts of entrusted properties as well as
all revenue and expense accounts generated by the property in trust are recorded in relevant accounts on thebalance sheets and statements of income and retained earnings.
Furthermore, the following material accounts are separately stated in the balance sheet for properties in trust
recorded in relevant accounts.
a. Cash and deposits in trustb. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust,land in trust and construction in progress in trustc. Tenant leasehold and security deposits in trust(2) Accounting for Consumption Taxes
Revenues and expenses in the Statements of Income and Retained Earnings do not include consumption taxes..

57

Japan Prime Realty Investment Corporation(Notes to Balance Sheets)*1. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral are as follows:(Thousands of yen)
End of 30th Fiscal Period(as of December 31, 2016)
Buildings (net)
Machinery and equipment (net)
Land
Total

End of 31st Fiscal Period(as of June 30, 2017)

109,559

107,690

2,397

2,226

399,183

399,183

511,139

509,100

Secured liabilities are as follows:(Thousands of yen)
End of 30th Fiscal Period(as of December 31, 2016)
Tenant leasehold and security deposits
Total

End of 31st Fiscal Period(as of June 30, 2017)15,536

15,536

15,536

15,536

2. Balance of Unused Commitment LineJPR has executed a commitment line agreement with its principal banks primarily to minimize refinancing risks and enhancefinancial stability.
(Thousands of yen)
End of 30th Fiscal Period(as of December 31, 2016)
Credit limit
Outstanding debts at end of period
Unused commitment line at end of period

End of 31st Fiscal Period(as of June 30, 2017)
24,000,000

24,000,000－－

24,000,000

24,000,000*3. Minimum Total Unitholders’ Equity Designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations(Thousands of yen)
End of 30th Fiscal Period(as of December 31, 2016)

End of 31st Fiscal Period(as of June 30, 2017)
50,00058

50,00059

Financial Statements(Notes to Statements of Income and Retained Earnings)*1. Breakdown of Rent Revenue-Real Estate and Expenses Related to Rent Business(Thousands of yen)
30th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

A. Rent Revenue-Real Estate
Rent Revenue
Rents
Land rents
Common charges
Parking revenues
Advertising expenses
Antenna use fees
Other
Subtotal
Other rental revenues
Incidental income
Time-based parking revenues
Cancellation charges
Income equivalent to expenses for restoration
to original condition

13,664,114

14,123,453

767,084
5,771
398,303

682,401
6,738
31,569249,769

35,11820,12928,152

1,441,058

783,980

Total rent revenue-real estate

15,105,172

14,907,434

542,555794,249
2,059,250
25,900586,870
248,127
591,197
1,884,057
166,153575,903770,789
2,061,610
25,944
246,252
259,656
578,579
1,907,957
172,521

6,898,364

6,599,215

8,206,808

8,308,218

B. Expenses Related to Rent BusinessOutsourcing expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Property management fees
Management association accounts
Depreciation
Other
Total expenses related to rent business

60

10,460,232
1,580,750
1,689,075
263,619
66,61521,71541,445

Subtotal

Other miscellaneous income

C. Profits(A-B)

9,982,743
1,581,000
1,717,771
259,30761,714
21,711
39,86659

Japan Prime Realty Investment Corporation*2. Breakdown of Gain/Loss on Sale of Real Estate(Thousands of yen)
30th Fiscal Period(July 1, 2016 - December 31, 2016)
Portion of Land of JPR Musashikosugi Bldg.
Proceeds from sale of real estate

31st Fiscal Period(January 1, 2017 - June 30, 2017)

5,869
5,284
－
584

－
－
－
－

1,880,000
2,178,967
1,553
300,521

－
－
－
－

－
－
－
－

3,100,000
2,984,311
700
114,988－－－－

1,900,000
1,803,549
700
95,75030th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate
JPR Daikanyama
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Loss on sale of real estate
Fukuoka Bldg.
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate
JPR Hakata-chuo Bldg.
Proceeds from sale of real estate
Cost of sale of real estate
Other expenses related to sale
Gain on sale of real estate(Notes to Statements of Changes in Unitholders’ Equity)

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

5,000,000 units

5,000,000 units

873,000 units

923,000 units(Notes to Statements of Cash Flows)*1. Relationship between the Cash and Cash Equivalents at End of Period in the Statements of Cash Flows and the Amounts of theCorresponding Accounts on the Balance Sheets(Thousands of yen)
30th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

Cash and deposits

17,896,631

18,984,868

Cash and deposits in trust

12,075,668

12,108,948

Cash and cash equivalents

29,972,299

31,093,816

61
60

Financial Statements(Leases)
Future lease revenues under non-cancelable operating leases(Thousands of yen)
30th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

Due within one year

6,452,339

6,404,275

Due after one year

12,859,051

14,758,222

Total

19,311,390

21,162,497(Financial Instruments)
1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
In an aim to proactively expand asset size and maintain stable cash distributions to unitholders, JPR adopts the asset management
policy of paying heed to efficiently combining the procurement of long-term funds that are stable and the procurement of shortterm funds that emphasize flexibility.
There may be cases where JPR will engage in derivative transactions, but such will be limited to management for interest rate
fluctuation risk and other hedging purposes. Please note that JPR is not engaged in derivative transactions at present.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Tokyo Realty Investment Management, Inc. (TRIM), the asset management company of JPR, strives for risk management bycomplying with the JPR Asset Management Guidelines and other rules and regulations. The following outlines the description ofindividual financial instruments and the associated risks, and the risk management.
Deposits are exposed to risks of failure of the financial institutions holding the deposits and other credit risks, but risks aremanaged through such measures as setting a minimum credit rating for the financial institutions holding the deposits.
Loans payable and investment corporation bonds are exposed to liquidity risks at the time of repayment/redemption, but liquidity
risks are managed through such measures as procuring funds from the capital market by increasing capital, executing acommitment line agreement with the main lending financial institutions, and also having statements of cash receipts anddisbursements prepared by the financial division.
(3) Supplementary Explanation on Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The estimated fair value of financial instruments, aside from values based on market price, include values based on reasonablecalculations when there is no market price. Certain assumptions, etc. are used in calculating those values and there may be cases
where the values will vary when different assumptions, etc. are used.

61

62

Japan Prime Realty Investment Corporation

2. Matters Concerning Estimated Fair Value, etc. of Financial Instruments
The following are the carrying values and estimated fair values as of December 31, 2016 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3).
(Thousands of yen)
Carrying Value(Note 1)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

17,896,631

17,896,631－(2)

Cash and deposits in trust

12,075,668

12,075,668－(3)

Short-term loans payable(7,000,000)(7,000,000)－(4)

Current portion of long-term loans payable(32,632,000)(32,748,950)

116,950(5)Current portion of investment corporation bonds(5,000,000)(5,025,000)

25,000(6)Investment corporation bonds(29,500,000)(31,233,681)

1,733,681(7)

Long-term loans payable(114,828,000)(116,946,458)

2,118,458

The following are the carrying values and estimated fair values as of June 30, 2017 of financial instruments, and the difference
between these amounts. Please note that the following table does not include those for which discerning of estimated fair value isrecognized to be extremely difficult (please refer to Note 3)
Carrying Value(Note 1)(Thousands of yen)

Estimated Fair
Value (Note 1)

Difference(1)

Cash and deposits

18,984,868

18,984,868－(2)

Cash and deposits in trust

12,108,948

12,108,948－(3)

Short-term loans payable

－

－

－

(4)

Current portion of long-term loans payable(21,374,000)(21,465,283)

91,283(5)

Current portion of investment corporation bonds(10,000,000)(10,033,000)

33,000(6)Investment corporation bonds(24,500,000)(26,123,941)

1,623,941(7)

Long-term loans payable(125,520,000)(127,268,518)

1,748,518(Note 1) Liabilities are shown in parentheses.
(Note 2) Method of calculation of estimated fair value of financial instruments(1) Cash and deposits, and (2) Cash and deposits in trust
As these financial instruments are settled within a short period of time, the estimated fair value is approximately the same as the book value and is thus statedat that book value.
(3) Short-term loans payable
As these financial instruments are settled within a short period of time and have floating interest rates, the estimated fair value is approximately the same as
the book value and is thus stated at that book value.
(4) Current portion of long-term loans payable, and (7) Long-term loans payable
Of the estimated fair value of these financial instruments, the fair value of long-term loans payable with floating interest rates is based on the book value, as
it reflects the market interest rate within a short period of time and thus is considered to be nearly equal to the book value. The fair value of long-term loans
payable with fixed interest rates is based on the method of calculating by discounting the total amount of principal and interest by the rate assumed as being
applicable in the event of a new drawdown corresponding to the remaining loan term.
(5) Current portion of investment corporation bonds, and (6) Investment corporation bonds
Of the estimated fair value of these financial instruments, those with market price are calculated based on market price and those with no market price arecalculated according to the fair value of long-term loans payable with fixed interest rates in (4) and (7) above.
(Note 3) Financial instruments for which discerning of estimated fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees of lease rental properties are not subject todisclosure of estimated fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is no market price and also since
it is difficult to calculate the actual deposit period from when lessees move in to when they move out. The following is the carrying value of tenant leasehold andsecurity deposits, and tenant leasehold and security deposits in trust.

(Thousands of yen)
Category62

End of 30th Fiscal Period(as of December 31, 2016)

End of 31st Fiscal Period(as of June 30, 2017)

Tenant leasehold and security deposits

7,672,848

7,756,073

Tenant leasehold and security deposits in trust

12,902,843

12,802,062

63

Financial Statements(Note 4) Scheduled redemption of monetary claims to be due after the account closing date of the 30th fiscal period (December 31, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

17,896,631

－

－

－

－

－

Cash and deposits in trust

12,075,668

－

－

－

－

－

Scheduled redemption of monetary claims to be due after the account closing date of the 31st fiscal period (June 30, 2017)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Cash and deposits

18,984,868

－

－

－

－

－

Cash and deposits in trust

12,108,948

－

－

－

－

－

(Note 5) Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after
the account closing date of the 30th fiscal period (December 31, 2016)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through FourYears

Due after FourYears throughFive Years

Due after Five
Years

Short-term loans payable

7,000,000

－

－

－

－

－

Investment corporation bonds

5,000,000

7,000,000

4,000,000－－

18,500,000

Long-term loans payable

32,632,000

16,408,000

17,100,000

17,000,000

14,820,000

49,500,000

Amount of repayment or redemption of short-term loans payable, investment corporation bonds and long-term loans payable scheduled to be due after the accountclosing date of the 31st fiscal period (June 30, 2017)(Thousands of yen)Due in One
Year or Less

Due after One
Year throughTwo Years

Due after Two
Years throughThree Years

Due afterThree Years
through Four
Years

－

－

－

－

－

－

Investment corporation bonds

10,000,000

2,000,000

4,000,000－－

18,500,000

Long-term loans payable

21,374,000

17,200,000

18,000,000

20,820,000

20,500,000

49,000,000

Short-term loans payable

Due after FourYears throughFive Years

Due after Five
Years

(Securities)
30th fiscal period (as of December 31, 2016)
Not applicable
31st fiscal period (as of June 30, 2017)
Not applicable(Derivative Transactions)30th fiscal period (as of December 31, 2016)
Not applicable as JPR conducted no derivative transactions
31st fiscal period (as of June 30, 2017)
Not applicable as JPR conducted no derivative transactions

64

63

Japan Prime Realty Investment Corporation(Retirement Benefits)
30th fiscal period (as of December 31, 2016)
Not applicable as JPR does not have any retirement benefit system
31st fiscal period (as of June 30, 2017)
Not applicable as JPR does not have any retirement benefit system(Tax Effect Accounting)
1. Breakdown of Main Items that caused Differences between the Effective Statutory Tax Rate and the Effective Tax Rate after
Applying Tax Effect Accounting
30th Fiscal Period(July 1, 2016 - December 31, 2016)
Effective statutory tax rate

31st Fiscal Period(January 1, 2017 - June 30, 2017)31.74%

31.74%(31.74%)(30.77%)

Other

0.01%

(0.96%)

Effective tax rate after applying tax effect accounting

0.01%

0.01%

(Adjustment)
Deductible cash distributions(Equity Method Income and Retained Earnings)
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable as JPR does not have any affiliated companies
31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable as JPR does not have any affiliated companies(Transactions with Related Parties)
1. Parent Company and Major Corporation Unitholders
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable
2. Subsidiaries
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable
3. Sister Companies
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable
4. Directors and Major Individual Unitholders
30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable64

65

Financial Statements(Asset Retirement Obligations)30th fiscal period (July 1, 2016 – December 31, 2016)
Not applicable
31st fiscal period (January 1, 2017 – June 30, 2017)
Not applicable(Segment Information)[Segment Information]
Disclosure is omitted as JPR is comprised of a single reportable segment engaged in the property rental business.
[Related Information]
30th fiscal period (July 1, 2016 – December 31, 2016)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings.
31st fiscal period (January 1, 2017 – June 30, 2017)
1. Information about Products and Services
Disclosure is omitted as sales to external customers for the single product and service segment is in excess of 90% of operating
revenue on the Statements of Income and Retained Earnings.
2. Information about Geographic Areas(1) Revenues from Overseas Customers
Disclosure is omitted as revenues from external customers attributed to Japan are in excess of 90% of total revenues on theStatements of Income and Retained Earnings.
(2) Tangible Fixed Assets
Disclosure is omitted as tangible fixed assets located in Japan are in excess of 90% of total tangible fixed assets on the Balance
Sheets.
3. Information about Major Customers
Disclosure is omitted as sales to any single external customer accounts for less than 10% of the operating revenue on theStatements of Income and Retained Earnings

65

66

Japan Prime Realty Investment Corporation(Investment and Rental Properties)
JPR owns office properties (urban commercial facilities) and retail properties for leasing in Tokyo and other regions. The following
is the carrying value on the balance sheets, amount of increase (decrease) during the period and estimated fair value of theseinvestment and rental properties.
(Thousands of yen)

Carrying Value on the Balance Sheets
Balance at Beginning of Period

30th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

391,239,266

401,294,854

Amount of Increase (Decrease) during the Period

10,055,587

12,587,819

Balance at End of Current Period

401,294,854
437,981,000

413,882,673

Estimated Fair Value at End of Period

464,545,000(Note 1) The carrying value on the balance sheets is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of increase (decrease), the amount of increase for the 30th fiscal period is primarily attributable to the purchase of GINZA GATES (10,131,529
thousand yen) and FUNDES Suidobashi (3,263,997 thousand yen), and the amount of decrease is primarily attributable to the sale of JPR Daikanyama (2,178,967
thousand yen), the sale of a splay portion of JPR Musashikosugi Bldg. (5,284 thousand yen) and depreciation (1,884,057 thousand yen). Of the amount of increase(decrease), the amount of increase for the 31st fiscal period is primarily attributable to the purchase of Tokyo Square Garden (18,729,734 thousand yen), and theamount of decrease is primarily attributable to the sale of Fukuoka Bldg. (2,984,311 thousand yen), the sale of JPR Hakata-chuo Bldg. (1,803,549 thousand yen)and depreciation (1,907,957 thousand yen).
(Note 3) The estimated fair value at end of the current period is the appraisal value or survey value as appraised by an outside real estate appraiser.

The income (loss) in the 30th and 31st fiscal periods for investment and rental properties are as presented in the “Notes to Statementsof Income and Retained Earnings.”(Per Unit Information)
30th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)248,154 yen

258,516 yen

7,047 yen

7,494 yen

Total net assets per unit
Net income per unit

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

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

30th Fiscal Period(July 1, 2016 - December 31, 2016)
6,152,795－
6,152,795
873,000 units

31st Fiscal Period(January 1, 2017 - June 30, 2017)

6,867,403－

6,867,403
916,367 units(Subsequent Events)
Not applicable

66

67

Financial Statements(7) Detailed Schedules
1) Schedule of Securities
Not applicable2) Status of Contract Amounts, etc. and Estimated Fair Value of Derivative Transactions and Forward Exchange Transactions
Not applicable3) Schedule of Assets Related to Real Estate

Asset Type

Current Assets

Accumulated Depreciation
Balance as of
Increase during Decrease during Balance as ofDepreciation
January 1,
Or Accumulated
the Period
the Period
June 30, 2017
during the2017
Amortization(thousands of(thousands of (thousands ofPeriod(thousands of(thousands of
yen)
yen)
yen)
(thousands of
yen)
yen)
yen)

Net Balance as ofJune 30, 2017
(thousands of
yen)

-

-

-

-

-

-

-

57,346,890
49,920245,761－－－

57,592,652
49,92015,005,148
19,449803,499
1,296

42,587,503
30,471

748,404

6,055－

754,459439,262

19,782

315,197

75,134690－

75,82442,5283,649

33,295

106,890,048－－

106,890,048－－

106,890,048

－

483

116

366

－

－

366

165,110,398

252,990

116

165,363,272

15,506,388

828,228

149,856,883

88,897,226

2,771,422

1,627,753

90,040,896

30,248,556

1,041,454

120,517

13,2807,930

125,868

74,4462,847

51,421

1,677,053

61,22526,646

1,711,632

1,305,431

28,594406,201

186,096

13,804

3,854

196,046

128,589

6,766

67,456

Land in trust

176,493,700

16,184,476

3,664,133

189,014,043－－

Constructionin progress in
trust

8,489

567

5,741

3,315

－

－

3,315

267,383,083
432,493,482

19,044,777
19,297,767

5,336,059
5,336,175

281,091,801
446,455,074

31,757,023
47,263,412

1,079,663
1,907,891

249,334,778
399,191,661

14,689,483－－

14,689,483－－

14,689,483

2,602
14,692,086

－

－

－

2,602
14,692,086

1,074
1,074

65

－

65

1,528
14,691,012

Noncurrent Assets(Property, plantand equipment)
Buildings
Structures
Machinery andequipment
Tools,
furniture andfixtures
Land
Constructionin progress
Subtotal

Remarks(Beneficiaryinterests in trust)Buildings in
trust
Structures intrust
Machineryandequipment in
trust
Tools,
furniture andfixtures intrust

Subtotal
Total
Intangible Assets
Leaseholdrights
Other
Total

Property
59,792,339 acquisition andsale

Property
189,014,043 acquisition andsale(Note 1) The “Increase during the Period” is due to property acquisition and construction works, etc.
(Note 2) The “Decrease during the Period” is due to the transfer to relevant accounts as a result of property acquisition and construction completion for construction inprogress and construction in progress in trust, and due to property sale, etc. for buildings in trust, structures in trust, tools, furniture and fixtures in trust and landin trust.

68

67

Japan Prime Realty Investment Corporation

4) Schedule of Other Specified Assets
Not applicable5) Schedule of Investment Corporation Bonds
Name

Issue Date

Balance as ofJanuary 1,
2017(thousands ofyen)

Seventh Series ofInvestment Corporation
Bonds (Note 1)

Dec. 14, 2006

4,500,000－

4,500,000

2.900

Dec. 14, 2026

Fourteenth Series ofInvestment Corporation
Bonds (Note 1)

Oct. 25, 2011

2,000,000－

2,000,000

1.340

Oct. 25, 2018

Fifteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

5,000,000－

5,000,000

0.680

Nov. 22, 2017

Sixteenth Series ofInvestment Corporation
Bonds (Note 1)

Nov. 22, 2012

2,000,000－

2,000,000

1.030

Nov. 22, 2019

Seventeenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

5,000,000－

5,000,000

0.650

May 31, 2018

Eighteenth Series ofInvestment Corporation
Bonds (Note 1)

May 31, 2013

2,000,000－

2,000,000

1.460

May 31, 2023

Nineteenth Series ofInvestment Corporation
Bonds (Note 1)

Feb. 5, 2014

5,000,000－

5,000,000

1.110

Feb. 5, 2024

Twentieth Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

2,000,000－

2,000,000

0.303

Jul. 22, 2019

Twenty-first Series ofInvestment Corporation
Bonds (Note 1)

Jul. 22, 2014

4,000,000－

4,000,000

1.278

Jul. 22, 2026

Twenty-second Series ofInvestment Corporation
Bonds (Note 1)

Dec. 4, 2014

3,000,000－

3,000,000

0.831

Dec. 4, 2024

34,500,000－

34,500,000

Total

Decreaseduring the
Period(thousands ofyen)

Balance as ofJune 30, 2017
(thousands ofyen)

CouponRate(%)

Maturity Date

Use

Remarks(Note 2)

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

Investment corporation
bonds

10,000,000

2,000,000

4,000,000-

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

-

68

69

Financial Statements

6) Schedule of Loans Payable

Increase
Decrease
Balance asduringduringBalance as ofof January
Current
Current June 30, 2017
1, 2017
PeriodPeriod(thousands of(thousands(thousands (thousands
yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

7,000,000－

7,000,000－

0.230%

July. 5, 2017 (Note 4)

Total

7,000,000－

7,000,000－

LenderIncrease
Decrease
Balance asduringduringBalance as ofof January
Current
Current June 30, 2017
1, 2017
PeriodPeriod(thousands of(thousands(thousands (thousands
yen)of yen)of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Mizuho Bank Ltd.

7,000,000－

7,000,000－

1.093%

Mar. 30, 2017

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.027%

Dec. 5, 2019

Mizuho Bank Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

Mizuho Bank Ltd.

－

3,000,000－

3,000,000

0.351%

Mar. 30, 2021

Mizuho Bank Ltd.

－

4,000,000－

4,000,000

0.400%

Mar. 30, 2022

Mizuho Bank Ltd.

5,000,000－－

5,000,000

1.178%

Jun. 27, 2023

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.011%

Mar. 11, 2024

Mizuho Bank Ltd.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Mizuho Bank Ltd.

5,000,000－－

5,000,000

0.804%

Feb. 4, 2026

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000－－

1,000,000

0.948%

Aug. 8, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000－－

3,000,000

0.919%

Sept. 5, 2017

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000－－

1,000,000

1.178%

Aug. 8, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000－－

1,000,000

1.027%

Dec. 5, 2019

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000,000－－

3,000,000

0.970%

Nov. 27, 2020

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,000,000－－

4,000,000

0.889%

Jun. 25, 2021

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000,000－－

5,000,000

0.510%

Mar. 25, 2024

Sumitomo Mitsui Banking Corporation

6,400,000－

6,400,000-

1.093%

Mar. 30, 2017

Sumitomo Mitsui Banking Corporation

1,000,000－－

1,000,000

1.027%

Dec. 5, 2019

Sumitomo Mitsui Banking Corporation

3,000,000－－

3,000,000

1.265%

Jun. 26, 2020

Sumitomo Mitsui Banking Corporation－

2,000,000－

2,000,000

0.351%

Mar. 30, 2021

Sumitomo Mitsui Banking Corporation－

4,000,000－

4,000,000

0.400%

Mar. 30, 2022

Sumitomo Mitsui Banking Corporation－－－
100,000

2,500,000
2,400,000

1.033%
3.190%

Jun. 27, 2022

Development Bank of Japan, Inc.

2,500,000
2,500,000

Development Bank of Japan, Inc.

820,000－－

820,000

1.449%

Jun. 25, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.188%

Dec. 3, 2021

Development Bank of Japan, Inc.

2,000,000－－

2,000,000

1.056%

Mar. 24, 2025

Development Bank of Japan, Inc.

3,000,000－－

3,000,000

0.843%

Jun. 14,2027

Shinsei Bank, Ltd.

5,000,000－－

5,000,000

1.397%

Apr. 5, 2019
Sept. 24, 2020

LenderUse

Short-term loans payable
Mizuho Bank Ltd. (Note 7)

Remarks

Unsecured/
Unguaranteed/
Non-Subordinated

Use

Remarks(Note 4)

Unsecured/
Unguaranteed/
Non-SubordinatedLong-Term Loans Payable (Note 1)

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.076%

Shinsei Bank, Ltd.

2,000,000－－

2,000,000

1.134%

Dec. 5, 2024

Shinsei Bank, Ltd.

1,000,000－－

1,000,000

0.843%

Jun. 14,2027

Mitsubishi UFJ Trust and Banking
Corporation

5,000,000－－

5,000,000

1.184%

Aug. 29, 2017

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000－－

1,000,000

0.873%

Aug. 31, 2023

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000－－

2,000,000

0.633%

Dec. 13,2024

900,000－－

900,000

0.994%

Jul. 3, 2017

Aozora Bank Ltd.

70

(Note 5)

Aozora Bank Ltd.

2,000,000－－

2,000,000

0.985%

Aug. 25, 2017

Aozora Bank Ltd.

2,000,000－－

2,000,000

1.146%

Aug. 30, 2018

Aozora Bank Ltd.

2,000,000－－

2,000,000

1.178%

Aug. 8, 201969

Japan Prime Realty Investment Corporation

Long-Term Loans Payable (Note 1)

Increase
Decrease
Balance as ofduringduringBalance as ofJanuary 1,
Current
Current June 30, 2017
2017
PeriodPeriod(thousands of(thousands of(thousands (thousands
yen)
yen)
of yen)of yen)Average
Interest
Rate(Note 2)
(Note 3)

Repayment
Date

Aozora Bank Ltd.

1,000,000－－

1,000,000

1.069%

Sept. 24, 2020

Mizuho Trust & Banking Co., Ltd.

4,000,000－

4,000,000－

1.093%

Mar. 30, 2017

Mizuho Trust & Banking Co., Ltd.

3,000,000－

1.076%

Feb. 4, 2020－

4,000,000－－

3,000,000

Mizuho Trust & Banking Co., Ltd.
Shinkin Central Bank

4,000,000

0.309%

3,000,000－－

3,000,000

0.689%

Mar. 30, 2020
Dec. 5, 2018

Shinkin Central Bank

2,000,000－－

2,000,000

0.388%

Dec. 14,2021

The Bank of Fukuoka

1,000,000－－

1,000,000

0.911%

Sept. 24, 2019

The Bank of Fukuoka

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Bank of Fukuoka

2,000,000－

2,000,000

0.480%

Jul. 7,2026

Meiji Yasuda Life Insurance Company

3,340,000－－
66,0003,274,000

1.800%(Note 6)

Meiji Yasuda Life Insurance Company

1,000,000－－

1,000,000

1.042%

Feb. 5, 2025

The Nishi-Nippon City Bank, Ltd.

1,000,000－－

1,000,000

0.388%

Dec. 14,2021

The Nishi-Nippon City Bank, Ltd.

3,000,000－－

3,000,000

0.646%

May 27, 2026

ORIX Bank Corporation

1,000,000－－

1,000,000

0.786%

Feb. 5, 2018

ORIX Bank Corporation

2,000,000－－

2,000,000

0.762%

May 27, 2019The Shinkumi Federation Bank

3,000,000－－

3,000,000

0.786%

Feb. 5, 2018

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.949%

Jun. 4, 2018

Taiyo Life Insurance Company

1,000,000－－

1,000,000

1.011%

Dec. 25, 2020

Taiyo Life Insurance Company

1,000,000－－

1,000,000

0.969%

Sept. 24, 2024

Chugoku Bank

1,000,000－－

1,000,000

0.758%

Sept. 25, 2018

Chugoku Bank

2,000,000－－

2,000,000

0.816%

Oct. 6, 2023

The Norinchukin Bank

1,000,000－－

1,000,000

0.440%

Dec. 5, 2017

The Norinchukin Bank

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

Sumitomo Life Insurance Company
National Mutual Insurance Federation ofAgricultural Cooperatives
Sompo Japan Nipponkoa Insurance Inc.

2,000,000－－

2,000,000

0.453%

Oct. 11, 2024

2,000,000－－

2,000,000

0.388%

Dec. 14, 2021

2,000,000－－

2,000,000

0.759%

Dec. 25, 2023

The Hachijuni Bank

1,000,000－－

1,000,000

0.489%

Oct. 9, 2020

The Hachijuni Bank

1,000,000－

1,000,000

0.209%

Sept. 24,2021

Resona Bank, Ltd.

2,000,000

Mar. 30, 2017－
1,000,000－－
2,000,000

1.093%

Resona Bank, Ltd.

－2,000,000－
2,000,000

0.438%

Sept. 30, 2022

The Iyo Bank, Ltd.
Daido Life Insurance Company
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Sumitomo Mitsui Trust Bank Limited
Total(Note 1)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)70－

1,000,000

0.816%

Oct. 6, 2023－－

1,000,000

0.710%

Dec. 27, 2018

1,000,000－－

1,000,000

0.710%

Dec. 27, 2018－－
19,000,000 19,566,000

1,000,000

0.691%

Mar. 25, 2026

146,894,000

1,000,000
147,460,000

Amounts of long-term loans payable to be repaid within five years after the date of the balance sheet are as follows.
Due in One YearDue after One YearDue after Two Years
Due after Three Yearsor Less
through Two Years
through Three Years
through Four Years(thousands of yen)(thousands of yen)(thousands of yen)(thousands of yen)
Long-term loans payable(Note 2)－

1,000,000

21,374,000

17,200,000

18,000,000

20,820,000

Use

Remarks(Note 4)

Unsecured/
Unguaranteed/
Non-SubordinatedDue after Four Years
through Five Years(thousands of yen)

20,500,000

The average interest rates are weighted-average figures during the period and are rounded to the third decimal place. Furthermore, fees related to loanarrangement paid to the above lenders are not included.
Short-term loans payable are floating-rate loans payable. Long-term loans payable are fixed-rate loans payable.
Funds are used for purchasing real estate or real estate beneficiary interests in trust (including accompanying expenses), repaying loans payable and redemptionof investment corporation bonds, etc.
The loans payable are subject to repayment of 100 million yen on December 27, 2009 and thereafter every 6 months. In addition, repayment of 2,100 million
yen will be made on maturity date June 27, 2019.
The loans payable are subject to repayment of 66 million yen on June 27, 2012 and thereafter every 6 months. In addition, repayment of 3,208 million yen will
be made on maturity date June 21, 2018.
JPR made early repayment of the 7,000 million yen in short-term loans payable on January 24, 2017, which was borrowed on October 24, 2016 from Mizuho
Bank, Ltd.

71

Financial Statements(8) Independent Auditor’s Report7271

Japan Prime Realty Investment Corporation(9) Other Notes (Information only)(Property and Equipment Leased to JPR)
30th Fiscal Period(July 1, 2016 - December 31, 2016)

31st Fiscal Period(January 1, 2017 - June 30, 2017)

No property and equipment was leased to JPR

No property and equipment was leased to JPR(Transactions with Interested Parties)
30th fiscal period (July 1, 2016 - December 31, 2016)
Attribute

Interested
party

Asset
CustodianName ofCompany,
etc.

Tokyo
TatemonoCo., Ltd.

MizuhoTrust &
Banking Co.,Ltd.

Business
Description or
Occupation

Percentage of
Number ofInvestment Units
Held Among Total
Number ofInvestment Units

Real estatebusiness

3.35%

Bankingbusiness andtrust businessTransactions

Purchase of realestatePurchase of
beneficiaryinterest in realestateTransaction
Amount(thousands ofyen)

10,100,000－

Balance at End
of Period(thousands of
yen)

－

－
3,250,000

－

－

－

－

－

Interest expenses

Account

38,312－Current
portion of
long-term
loans
payableLong-term
loans
payableAccruedexpenses

4,000,000

3,000,000
832(Note) Transaction terms are determined based on prevailing market conditions.

31st fiscal period (January 1, 2017 - June 30, 2017)
Attribute

Name ofCompany,etc.

Business
Description or
Occupation

Interested
party

Tokyo
TatemonoCo., Ltd.

Real estatebusiness

Asset
CustodianMizuho Trust& BankingCo., Ltd.

Bankingbusiness andtrust business

Percentage of
Number ofInvestment Units
Held Among Total
Number ofInvestment Units

3.17%

－

Transactions

Transaction
Amount(thousands ofyen)Sale ofbeneficiaryinterest in realestate5,000,000－－

Repayment oflong-term loans
payable4,000,000

Current
portion of
long-termloans payable－

4,000,000

Long-termloans payable

7,000,000

Borrowing of
long-term loans
payableInterest
expenses

29,783

Account

Accruedexpenses

Balance at End
of Period(thousands of
yen)

366

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

72

73

Investor Information

Status of Investment Unit Price (as of June 30, 2017)Market capitalization: ¥359.5 billion

High: ¥564,000 (May 7, 2007)

Unit price at end of 31st Fiscal Period: ¥389,500

Low: ¥130,300 (October 28, 2008)

Trading Volume(units)
32,000

Trading Volume (units)

Unit Price (yen)Unit Price(yen)
580,000

28,000520,000

Offer price at additional offering: ¥449,820

24,000460,000

Offer price at additional offering: ¥439,040
20,000400,000

Offer price at additional offering: ¥394,875
16,000340,000

Offer price at additional offering: ¥272,440

12,000280,000

Offer price at additional offering: ¥237,160
8,000

220,000

Offer price at IPO: ¥200,000
Offer price at additional offering: ¥194,610

4,000

160,000

Offer price at additional offering: ¥168,1010

100,000

Jun. 14 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 3 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 1 Jan. 4 Jul. 2 Jan. 4 Jul. 1 Jan. 6 Jul. 1 Jan. 5 Jul. 1 Jan. 5 Jul. 1 Jan. 4 Aug. 8
2002 2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Note) Unit prices are based on closing prices.

Breakdown of Unitholders (as of June 30, 2017)
Other domestic
corporations

Foreign investors

416

218

(3.31%)(1.73%)

Financial institutions(including securities firms)

204(1.62%)

Number ofunitholders
by investor type

37,930 units(4.10%)(23.46%)

Other domestic
corporations

12,535

Individuals

Foreign investors

216,596 units

82,086 units(8.89%)

Number ofinvestment units
by investor type923,000
units

Individuals

Financial institutions(including securities firms)

586,388 units

11,697(63.53%)(93.31%)(Note) The composition ratio is rounded down to the second decimal place.

Annual Schedule (provisional)
December

September

Sending of asset management report for the fiscal period ending June
Start of cash distributions for the fiscal period ending June
Information disclosure

AugustAnnouncement of financial results
for the fiscal period ending June

June

Fiscal term ends

74

on the website as
appropriate

March

Fiscal term ends

February

Announcement of financial results
for the fiscal period ending December

Start of cash distributions for the fiscal period ending December
Sending of asset management report for the fiscal period ending December

Introduction to the JPR Website

http://www.jpr-reit.co.jp/en/

8955(Securities Code)JPR endeavors to conduct IR activities and information
provision by offering a variety of contents on its website
in order to secure timely disclosure of information toinvestors and help them gain a better understanding of
JPR.
Point 1 Digest of Financial Results

Point 1A digest version movie of theanalyst meeting is provided topresent JPR’s latest financial
results, asset management
status, future growth strategies
and other matters.

Point 2 Briefing Sessions and Events
A variety of latest information is delivered, including notices ofbriefing sessions and events for retail investors, JPR’s latest
asset management status and other issues.

Point 2

Point 3IR Mail Delivery Service
The IR Mail Delivery Service provides information
on JPR in a timely manner to registered persons. If you wish to beregistered, please click this icon to apply.

Point 3 Property Overview
Detailed explanations of
JPR’s properties are provided,
including their features,
specifications and revenues
and expenses. The accessroutes to respective properties
from the nearest stations canbe searched by smartphone.
We advise you to use thisfunction when you wish tovisit the properties.

Notes for Investors
Fiscal Period Ends

June 30 and December 31 of each year

General Meeting of Unitholders

At least once every two years

Base Date of General Meeting of Unitholders

The date designated pursuant to JPR’s Articles of Incorporation

Cash Distribution Payment Eligibility

Unitholders of record as of June 30 and December 31 of each year

Transfer Agent

Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo

Location of Records

Main Branch, Stock Transfer Agency Division
Mizuho Trust & Banking Co., Ltd.
2-1 Yaesu 1-chome, Chuo-ku, Tokyo

Mailing Address

Stock Transfer Agency Division
Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507

Contact by Phone

0120-288-324 (toll-free only in Japan)

Listing

Tokyo Stock Exchange (Securities Code: 8955)

Procedures for Change of Address
For filing or inquiring about a change of address, please contact your securities company with whom you have an account. For unitholders who have notutilized Japan Securities Depository Center, Inc. before the dematerialization of stock certificates, accounts (special accounts) have been opened at Mizuho
Trust & Banking Co., Ltd., JPR’s transfer agent. For filing or inquiring about a change of address and other matters with regard to your special account,please direct them to the contact number indicated above.
Cash Distributions
Cash distributions can be collected by bringing the “unitholder dividend receipt” to the nearest Japan Post Bank main or branch office, sub-branch office orpost office (bank agent) in Japan. If the collection period has elapsed, please make your collection by designating the collection method on the back of the“unitholder dividend receipt” and mailing it to Mizuho Trust & Banking’s Stock Transfer Agency Division. Cash distributions can also be collected at the mainor branch offices of Mizuho Trust & Banking (excluding the Trust Lounge) and Mizuho Bank, Ltd.
If you wish to designate a transfer of cash distributions to a bank, etc., please contact your securities company (if you have an account with the company) or
Mizuho Trust & Banking (if a special account has been opened), as in the case of changing the address, etc. above.
(Note) According to the provisions of JPR’s Articles of Incorporation, cash distributions will become irretrievable if they remain unclaimed for three full years from the date on which payment commenced. We advisethat cash distributions be received as soon as possible.