Against the background of a robust office property leasing market, Japan Prime Realty Investment Corporation (8955) achieved its 11th consecutive year of DPU growth in the financial results for its 35th fiscal period ended June 30, 2019.

◎Financial Results and Forecasts of Financial Results
▽Results of the 35th fiscal period ended June 2019
・DPU: 7,380 yen (up 54 yen, period-on-period)
・DPU compared with the forecast : up 30 yen
・Rent revenue continued to increase, reflecting steady progress in attracting new tenants and revising rents upward
・Increase in property tax was absorbed and cash distributions increased for the 11th consecutive period
▽Forecast of the 36th fiscal period ending December 2019
・DPU: 7,430 yen (up 50 yen from 35th period (Jun.'19) actual results)
・Cash distributions are expected to continue increasing in the 36th period, mainly due to asset replacement conducted in the previous period
・Aim to accumulate further profit under favorable leasing market conditions
▽Forecast of the 37th fiscal period ending June 2020
・DPU: 7,500 yen (up 70 yen from 36th period (Dec.'19) forecast)
・Medium-term DPU target of 7,500 yen is expected to be reached
・Aim for stable growth through continuous upward revision of rents, reduction of financial costs and cost control
▽Medium-term Target
・Existing target of 7,500 yen is expected to be reached in Jun.‘20 period
・Set new target of 7,800 yen and aim for further growth

◎Growth Strategy
▽Internal Growth Strategy
・Vacancies were filled quickly and high occupancy was maintained
・Occupancy rate are expected to remain stable at a high level in and after the Dec.'19 period
・With steady progress made in upward revision of rents and raising of rents upon tenant replacement, office rents continued to increase
・With rents still being revised upward, the gap in rents will widen further due to solid demand.
・On top of measures to achieve continuous raising of rents and effective value enhancement, energetically endeavor to reduce expenses
・JPR actively carried out value-adding construction work aimed at increasing property competitiveness
・JPR’s retail properties are situated in prime locations or in areas close to stations and with high commercial potential
▽External Growth Strategy
・Addition of Hotels (Urban Accommodation Properties) to Investment Targets
・Making rigorously selected investments by utilizing preferential negotiation right
・Promote vigorously selective investments and asset replacement by utilizing the sponsor pipelines
・Acquired Property (Jun. 2019 fiscal period)　「KY Kojimachi Bldg.」 「FUNDES Ueno」
▽ Financial Strategy
・Flattening of Repayment Amount and Reduction of Cost of Debts
▽Sustainability
・Seek to contribute to the sustainable growth of society
・Promoted acquisition of environmental certification and issued Green Bonds
・Reinforcing Continuous Improvement Initiatives on Environmental Issues
・Endeavor to secure and enhance the soundness of business management as an investment corporation and an asset management company that are reliable and trustworthy