Japan Prime Realty Investment Corporation (8955) in the 36th fiscal period,
cash distributions increased for the 12th consecutive fiscal period, partly attributable to the asset replacement implemented in the previous fiscal period.

Japan Prime Realty Investment Corporation (8955) in the 36th fiscal period,
cash distributions increased for the 12th consecutive fiscal period, partly attributable to the asset replacement implemented in the previous fiscal period.

◎Public Offering Highlights
▽Purpose and effect
・Growth of the portfolio through acquisition of blue-chip properties utilizing sponsor pipelines (Asset size increased 457.1 billion yen）
・Stable control of LTV and increase in capacity to acquire properties (LTV dropped to 39.6％, and acquisition capacity grew to 46.5 billion yen）
・Further improvement in unitholder value through growth of distribution per unit and NAV per unit (DPU Growth of around 3% until the fiscal period ending December 2020)

◎Growth Strategy
▽Internal Growth
・Vacancies were filled quickly and high occupancy was maintained. Occupancy rate are expected to remain stable at a high level in and after the Jun. ’20 period.
・With steady progress made in upward revision of rents and raising of rents upon tenant replacement, office rents continued to increase.
・The gap in rents will widen further due to solid demand
・JPR’s retail properties are situated in prime locations or in areas close to stations and with high commercial potential. The occupancy rate remains stable at almost full occupancy.
▽External Growth
・[Sencity Bldg.] A large-scale, high-rise office building directly connected to Chiba Station to be acquired from a sponsor.
・[Minami Semba Bldg.] Property in an ideal location in the Shinsaibashi area, an excellent commercial area in Osaka, to be acquired from the main sponsor.
・Opportunities for external growth are expected to increase due to the expansion of property sale by Tokyo Tatemono.
▽Financial Strategy
・Lengthening of Maturity, Flattening of Repayment Amount for Each Fiscal Period and reduction of Cost of Debts.
・Average maturity (Before refinancing)6.5 years ⇒ (After refinancing)8.4 years
・Average borrowing interest rate (Before refinancing)0.93% ⇒ (After refinancing)0.48%
・JPR issued Green Bonds for the first time in July 2019

◎Financial Results and Operating　Forecasts
・Results of the 36th fiscal period ended December 2019: DPU 7,493 yen (up 113 yen, period-on-period)
・Results of the 36th fiscal period ended December 2019: Total assets 453.4 billion yen, NAV per unit 259,230 yen
・Forecast of the 37th fiscal period ending June 2020: DPU 7,590 yen (up 97 yen from 36th period (Dec. ‘19) forecast)
・Forecast of the 38th fiscal period ending December 2020: DPU 7,720 yen (up 130 yen from 37th period (Jun. ‘20) forecast)

◎Medium-term Target
・Distribution per unit is 7,800 yen