Market Update, Occupancy & NAV Update

17 October 2012

Japan Residential Investment Company Limited ("the Company")

Market Update, Portfolio Occupancy and NAV Update

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".

Market Update

Fund performance in the last quarter has been encouraging with the Investment Advisor reporting an increase in residential market activity as well as improvements in both leasing and investment conditions against a backdrop of increasing asset liquidity. From time to time the Manager receives approaches for assets of the Fund and is currently reviewing one such preliminary approach from a listed entity. In light of the continuation vote for the fund in 2013 and with a view to maximising returns for shareholders the Board has asked the Manager to consider the longer term prospects for the Fund's assets compared with near term options to realise value.

Portfolio Occupancy

On 30 September 2012, the Fund portfolio occupancy rate was 95.5%, increasing 1.5% from that of the same date one year prior.

Average occupancy for the first ten months of the current financial year improved to 95.1% from 95.0% for the same period, one year prior. Average occupancy for the 12 months ended 30 September 2012 decreased to 94.9% from 95.0% for the 12 months ended 30 September 2011.

NAV Update

The Net Asset Value ("NAV") for the Company as of 31 August 2012 (unaudited) was 71.5 pence per share (JPY 88.9 per share) compared to 71.2 pence per share (JPY 86.8 per share) as at 30 November 2011. This NAV reflects increases of 3.1 pence from underlying profit and 0.4 pence from fair value gains from investment property for the period, which were partially offset by decreases from a 1.8 pence dividend payout and a 1.4 pence net currency translation and foreign exchange movement. The calculation of NAV is based on the most recent external valuation of investment properties as at 31 May 2012, including Lilienberg Mejiro Ichiban Kan which was acquired on 28 June 2012.

The Net Asset Value in Sterling is determined using the Yen: Sterling exchange rate of JPY124.366, which was the prevailing rate as at 31 August 2012 (30 November 2011: JPY121.888).

-ENDS-

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