Investment Property Valuation

20 June 2013

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 Fund portfolio was externally valued at ¥32,614 million (£213 million) as at 31 May 2013. The rate of property value growth rose to 3.9% for the year ended May 2013 on a like-for-like basis, compared with a 0.1% increase over the same period one year prior. Property value gains totaled ¥1,225 million (£8 million) on a like-for-like basis during the period. Yield compression and reduced operating expenses were the primary factors supporting valuation gains. During the six months ended 31 May 2013, portfolio value increased 1.4% on a like-for-like basis.

The unleveraged net yield of the portfolio (appraised net operating income over value) was 5.7% as at 31 May 2013, down from 5.9% at the same time one year prior. The Investment Adviser expects falling yields to continue exerting upward pressure on Japanese residential property prices driven by improving fundamentals, investor asset diversification requirements, and generous spreads between property income and financing costs.

Portfolio valuation trend by region for year ending May (like-for-like basis):

Note: Sterling values are based on the exchange rate of ¥153.18/£1 as at 31 May 2013.

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

Liberum Capital Limited

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

Westhouse Securities Limited

Joint Broker Alastair Moreton

Darren Vickers +44 (0)20 7601 6100