Investor Presentaiton

JPR Future Management Policies Investing with an emphasis on Tokyo offices in addition to implementing various measures for improving NOI with the aim of stabilizing steady DPU in the 23rd Fiscal Period forward External Growth Strategy [Market Analysis] ■The real estate transaction market is heading for recovery ahead of office rental market and conditions for greater market activity is emerging ■Information on excellent properties in the secondary market still in scarce state ■Buyers find it difficult to set high price targets as the Japanese economy remains unclear and the real estate market is not showing clear improvements ■Investment corporations may boost property acquisition with recovery of investment unit prices [JPR's Strategy] ■Somewhat overheated transaction can be seen here and there as there is a lack of excellent properties in the real estate transaction market, but judging from a medium- to long-term perspective the favorable period for property acquisitions will continue for some time ■Leverage sponsors' pipelines and consider acquisitions mainly of office properties in the greater Tokyo area and also acquisitions from the secondary market ■Continue to strive to enhance portfolio quality while continuing to consider property replacements intended for NAV improvement ■Continue to make investment decisions by extensively setting up antennas in the market to collect information through such sources as sponsors, accurately grasping market trends and carefully researching investment value including determining future potential Internal Growth Strategy [Market Analysis] Although the vacancy rate of Tokyo offices increased due to the impact of new supply concentrated in the first half of 2012, the vacancy rate is expected to improve in the second half due to a decrease in supply and steady demand ■The supply-demand balance is improving but a turnaround (increase) of rents is expected to require some time due to uncertain economic prospects ■Some excellent offices and retail properties in good locations have mostly bottomed out [JPR's Strategy] ■Newly set up the Leasing Supervising Group at the Asset Manager (TRIM) to oversee leasing and reinforce leasing activities ■In the recovery phase of the office rental market, steadily catch up to the needs for relocation and increasing floor space to lead to the recovery of the occupancy rate through careful operative response ■Improve competitiveness of properties with focused investment in renewal work, responding to tenant needs, etc. ■Strengthen cost control by proactively introducing energy-saving facilities and pursuing rationalization of management structure Financial and IR Strategies [Market Analysis] ■Long-term interest rates will be falling as risk aversion tendencies increase due to the impact of concerns over global economic slowdown such as the European debt crisis ■Environment of debt financing from financial institutions continues to be favorable [JPR's Strategy] ■Engage in further compression of borrowing costs in refinancing and financing for property acquisitions ■Continue to consider early repayments with regard to some relatively high cost borrowings ■Consider acquiring borrowings with longer terms, keeping in mind the diversification of maturity dates ■Utilize syndicate loans, etc. and work to increase new lenders as flexibility of loan transactions have improved with amendment of loan agreement Japan Prime Realty Investment Corporation 21 24

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