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Investor Presentaiton

JPR Equity Finance Overview JPR conducted its fifth additional public offering through a global offering, the first such arrangement for JPR [Background] Concerns about real estate transaction prices rising in anticipation for recovery in the office building leasing market Apparent moves toward equity financing during the current fiscal year being activated led by operating companies Tendency for "risk off" (avoiding risks) in the face of the European sovereign debt crisis, uncertain outlook of the world economy and other factors JPR's unit price remains solid, staying above net asset value (NAV) per unit Investigation of an offering size that can absorb investor demand amid limited offering opportunities [Objectives] ■Prepare for implementing growth strategy by quickly regaining JPR's extra capacity to acquire properties through debt financing ■Selective investment in properties with relatively high yields, akin to the stabilized profitability and reinforced foundations for growth realized by the acquisition of Otemachi 1-6 Plan (tentative name) (land with land leasehold) ■Secure DPU at 6,000 yen, the target level under normal operations, for the 23rd fiscal period and after ■Firmly maintain the position as one of the largest J-REITS managing a comprehensive-type portfolio, both in terms of market capitalization and asset size ■Provide foreign investors with investment opportunity in the primary market through global offering, the first such arrangement for JPR LTV (based on unitholders' capital) End of 21st fiscal period After public offering 53.2% 48.5% (Note) (Note) The figure assumes that JPR will issue 8,580 new investment units through third-party allotment and repay JPY 2.5 billion in interest-bearing debts. Acquisition price (single property) NOI yield (current figure) Market capitalization (as of Aug. 10, 2012) Asset size (as of Aug. 17, 2012) JPY 10,996 million 5.8% JPY 170.4 billion JPY 391.9 billion [Equity Finance Overview] Offering type Number of investment units issued and outstanding Global offering (offering centered on Europe and Asia [excluding the U.S. and Canada]) 715,000 units Total number of units issued / dilution ratio 110,000 units Dilution ratio: 15.4% of units issued and outstanding Domestic primary offering and global offering Secondary offering (over-allotment) Total amount of offering Domestic primary offering and global offering Secondary offering (over-allotment) Portion 101,420 units (57,420 units via domestic offering and 44,000 units via global offering) [Public Offering Results] First additional public offering Additional listing: July 2003 Unit issued: 140,400 (JPY bn) Total purchase price: JPY 32.1 billion 250 Second additional public offering Additional listing: February 2005 Unit issued: 100,000 Total purchase price: JPY 26.3 billion Third additional public offering Additional listing: February 2007|| Unit issued: 95,000 Fourth additional public offering Additional listing: February 2010 Unit issued: 90,000 Total purchase price: JPY 41.2 Total purchase price: JPY 14.6 billion billion Fifth additional public offering Additional listing: July 2012 Unit issued: 110,000 Total purchase price: JPY 20.7 billion 8,580 units (Third-party allotment as a result of exercising the greenshoe option: 8,580 units maximum) 200 JPY 21,407 million Total procured amount JPY 20,704 million (maximum) 192 171 171 171 171 171 156 156 156 156 156 156 JPY 19,737 million Net proceeds JPY 19,089 million 150 JPY 1,669 million. Net proceeds through third-party allotment JPY 1,614 million (maximum) 115 115 115 115 60% domestic 100 89 89 89 (42% public and 18% institutional): 40% global Issue price (offer price) JPY 194,610 per unit (closing price of the pricing date: JPY 199,600). 56 56 56 50 Paid-in amount (purchase price) JPY 188,222 per unit Resolution day of issuance /pricing date Resolution day of issuance: July 9, 2012 Pricing date: July 23, 2012 H 54.9 39.4 40.6 46.4 51.1 37.1 42.0 44.1 45.8 48.7 37.2 38.9 44.1 45.2 48.9 49.0 48.5 48.9 48.7 48.8 53.2 48.5 Payment date / additional listing Payment date: July 30, 2012 date 0 Additional listing date: July 31, 2012 Use of proceeds JPY 7.0 billion to fund acquisition of specified asset, JPY 13.7 billion to repay short- term borrowings (planned) 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st End of Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Aug. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. 2012 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 Forecast Unitholders' capital LTV based on unitholder's capital Japan Prime Realty Investment Corporation 17
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