Investment Property Valuation

12 January 2015

Japan Residential Investment Company Limited

(the "Company")

Investment Property Valuation

Japan Residential Investment Company Limited (AIM: JRIC) is a closed-ended Guernsey registered company established to make and hold investments in residential property in Japan. The Company, its subsidiaries and entities in which it has a beneficial interest are referred to collectively as "the Fund". The Company today announces updated investment property valuations for the year ended 30 November 2014.

Investment property values increased 3.8% in yen terms during the year ended 30 November 2014 on a like-for-like basis according to external appraisals. This compares with a 3.0% increase over the prior twelve month period. The aggregate value of the Fund investment property (the "Portfolio") grew 35.3% to ¥46,175 million (£249 million) as a result of new acquisitions and valuation gains during the year ended 30 November 2014. This growth follows the deployment of proceeds from equity raised in October 2013 and surplus cash to acquire nine properties with a total purchase price of ¥10,932 million (£59 million) excluding tax and other acquisition costs.

While the Portfolio registered valuation gains in each of the major regional categories, the largest gains in percentage terms were in Nagoya (+4.5%) followed by Tokyo (+4.4%), Osaka (+2.9%) and Other (+2.9%) on a like-for-like basis. For the six months ended 30 November 2014, the portfolio value increased 1.6% overall (Tokyo: +1.7%, Osaka: +1.5%, Nagoya: +1.6%, and Other: +1.4%).

The unleveraged net yield of the Portfolio (appraised net operating income over value) ended at 5.3% as at 30 November 2014, down from 5.6% at the same time one year prior.

Portfolio valuation trend by region (like-for-like basis) and property yield for the year ended 30 November:

Note: Sterling values are based on the exchange rate of ¥185.59/£1 as at 30 November 2014.

Enquiries:

KK Halifax Management Limited

Manager Edward Barrow +65 6593 8904

KK Halifax Asset Management

Investment Adviser Alec Menikoff +81 (0)3 5563 8771

Smith & Williamson Corporate Finance Limited

Nominated Adviser Azhic Basirov

David Jones +44 (0)20 7131 4000

Jefferies Hoare Govett

Joint Broker Sara Hale

Max Jones +44 (0)20 7029 8000

Liberum Capital Limited

Joint Broker Richard Bootle +44 (0)20 3100 2222