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Investor Presentaiton

JPR Financial Strategy Strive for extended duration and lower average borrowing interest rate by reaping maximum benefits from the favorable debt financing environment Basic Policy on Financial Strategy ■Lower interest rates through refinancing ■ Promote long-term, fixed interest rates and diversify and level off repayment dates ■Maintain commitment line (28.0 billion yen) Changes in base borrowing rate (%) 2.0 1.5. 1.0 Swap rate (5Y) 0.5 ■ Enhance flexibility of debt financing through complete revision of financing agreements 0.0 00.04 01.04. 02.04 03.04 04.04 05.04 06.04 07.04 08.04 09.04 10.04 11.04 12.04 ■Increase lenders by utilizing syndicated loans Changes in Maturity and Average Interest Rate of Long-Term Interest-Bearing Debts (Note) Data has been taken from the swap rate of the five-year Tokyo Swap Reference Rate (10 a.m.) indicated on the Telerate Systems screen 17143P. Average interest rate of long-term interest-bearing debts has been decreasing under the favorable debt financing environment, and is projected to continue decreasing slowly On the other hand, JPR intends to increasingly extend maturity (duration) of long-term interest-bearing debts Maturity of long-term interest-bearing debts (right axis) Average interest rate of long-term interest-bearing debts (left axis) (Reference) Overview of Refinancing in the 22nd Fiscal Period (years) Lender: Aozora Bank, Ltd. 2.2% 6 2.07% Debts to be refinanced (average interest rate) Amount 1.99% 2.0% Interest rate Borrowing terms 2.0 billion yen 1.178% 1.91% 1.85% 22nd period: 5.900 million yen (1.55%) 23rd period: 11.000 million yen (1.39%) Duration 5 1.76% Drawdown date 7 years 2012.8.8. 1.8% Repayment date 2019.8.8 1.6% 1.56% 1.54% 4 Lender: The Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.4% 4.2 yrs 4.1 yrs 3.8 yrs 3.8 yrs 3.7 yrs 3.7 yrs 3.7 yrs 1.2% 3 Amount Interest rate Duration Drawdown date Repayment date 0 0.0% End of 16th Period End of 17th Period End of 18th Period End of 19th Period End of 20th Period End of 21th Period As of Aug. 17, 2012 End of 22th End of 23nd Period Period (Note 1) Average interest rate of long-term interest-bearing debts is a weighted average of interest rates at the end of respective periods and dates, calculated in accordance with the balance of respective interest-bearing debts, for long-term interest-bearing debts maturing in more than one year from the end of respective periods and dates. (Note 2) Maturity of long-term interest-bearing debts has been rounded to the first decimal place, and average interest rate of long-term interest-bearing debts has been rounded to the second decimal place. Japan Prime Realty Investment Corporation Borrowing terms 1.0 billion yen 1.178% 7 years 2012.8.8 2019.8.8 + Borrowing terms 1.0 billion yen 0.948% 5 years 2012.8.8 2017.8.8 27 27
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