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Investor Presentaiton

JPR Comparison of Actual Results and Forecasts for the 21st Fiscal Period (Ended Jun. 2012) Revenue and profits related to rent business surpassed forecast at beginning of period, and DPU settled at a level matching the forecast at beginning of period after absorbing the burden of fees for early repayment (JPY mn) 21st Fiscal Period Forecasts 21st Fiscal Period Actual Change Jan. 1, 2012 - Jun. 30, 2012 Amount Rental Revenues Other rental revenues Rent revenue - real estate (1) Operating revenue Property and other taxes Other expenses related to rent business Outsourcing expenses Utilities expenses % 11,520 94.6% 653 5.4% 12,174 100.0% 12,174 100.0% Jan. 1, 2012 Jun. 30, 2012 Amount 11,626 719 12,345 12,345 % 94.2% 5.8% Amount % 106 0.9% 65 10.1% 100.0% 171 1.4% Increase/decrease by contract revision: (Note) The increase/decrease includes variations in 21st period due to factors changed in 20th period) 1. Rent revenues ⚫ Properties owned at end of 19th period: Increase by new move-ins: Decrease by cancellation: +81 mn yen +41 mn yen - 18 mn yen +53 mn yen 100.0% 171 1.4% • Properties acquired in 20th period +0 mn yen 1,070 8.8% 1,031 8.4% -39 -3.6% • Properties acquired in 21st period: +24 mn yen 2,403 19.7% 2,432 19.7% 28 1.2% 493 4.1% 496 4.0% 3 0.7% 2. Other rental revenues 675 5.5% 682 5.5% 7 1.0% Casualty insurance 27 0.2% 27 0.2% 0 -1.3% Repairs and maintenance 316 2.6% 347 2.8% 31 9.9% Property management fees 212 1.7% 214 1.7% 2 1.1% Management association accounts 555 4.6% 555 4.5% 0 0.1% Others 122 1.0% 107 0.9% -15 -12.9% Depreciation 1,750 14.4% 1,754 14.2% 4 0.2% Expenses related to rent business (2) 5,224 42.9% 5,217 42.3% -6 -0.1% Asset management fees 439 3.6% 443 3.6% 3 0.8% ⚫ Properties owned at end of 19th period: [Incidental income: •Properties acquired in 20th period: 3. Expenses related to rent business • Properties owned at end of 19th period: Property and other taxes: Repairs and maintenance: • Properties acquired in 20th period: +66 mn yen +55 mn yen] +0 mn yen - 8 mn yen Adm. service/custody fees 76 0.6% 74 0.6% -2 -2.6% • Properties acquired in 21st period: -39 mn yen +29 mn yen +1 mn yen +0 mn yen Directors' compensation 6 0.1% 6 0.1% Trust fees 41 0.3% 42 0.3% 1 3.2% 4. Non-operating income Other operating expenses 160 1.3% 167 1.4% 7 4.4% ⚫ Settlement of management association accounts +12 mn yen Operating expenses Operating income 5,949 48.9% 5,952 48.2% 3 0.1% 6,224 51.1% 6,393 51.8% 168 2.7% 5. Interest expenses Profits ((1) - (2)) Net operating income (NOI) 6,949 57.1% 7,127 57.7% 178 2.6% • Interest expenses for loans: -78 mn yen 8,699 71.5% 8,882 71.9% 182 2.1% Non-operating income 44 0.4% 62 0.5% 18 41.7% 6. Borrowing expenses Interest expenses (incl. investment corporation bonds) 1,539 12.6% 1,459 11.8% Borrowing expenses 125 1.0% 373 3.0% -79 -5.2% 247 196.7% • Fees for early repayment: +220 mn yen Net income Amortization of investment corporation bond issuance costs Other non-operating expenses Non-operating expenses Ordinary income Income before income taxes Unappropriated retained earnings 23 0.2% 23 0.2% 0 -1.0% 2 0.0% 2 0.0% 0 -2.9% 1,691 13.9% 1,858 15.1% 167 4,577 37.6% 4,597 37.2% 19 9.9% 0.4% 4,577 37.6% 4,597 37.2% 19 0.4% 4,576 37.6% 4,596 37.2% 19 0.4% 4,602 37.8% 4,622 37.4% 19 0.4% (Note 1) The forecasts for the 21st fiscal period were those released at the results announcement for the 20th fiscal period (ended December 31, 2011). They were calculated on the basis of 58 properties, comprising 57 properties JPR owned as of the end of the 20th fiscal period and one property to be acquired in the 21st fiscal period. (Note 2) Amounts have been rounded down to the nearest specified unit; the percentages and the changes have been rounded to the first decimal place. Distributions per unit (Note 1) Total number of units outstanding at end of period 6,400 yen 6,430 yen 30 yen (715,000) (715,000) (-) Japan Prime Realty Investment Corporation 6
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