Trading and Financing Update

9 November 2010

Japan Residential Investment Company Limited ("the Company")

Trading and Financing 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".

Trading Update

The Fund portfolio occupancy rate has improved to 95.3% at October end. This is up from 91.7% at the end of the interim period on 31 May 2010.

As at 31 August (the end of Q3), NAV was 68.9p per share, based on the most recent external valuations on 31 May 2010 and an exchange rate of JPY 129.23/GBP 1, with Cash at Bank of £49.2m and a gearing level (net debt/total assets) of 37.4%.

The Fund resumed distributions with the September payment of 1.0p per share. This interim distribution was in respect of the first six months of the financial year to 31 May 2010 and was fully covered by underlying profit during the period. The Board intends to continue a prudent distribution policy to the extent that the Fund's gearing, profitability, and cash flow allow.

Financing

In June 2010, the Company announced it had raised £35.0m (£34.1m net proceeds) through the issue of 87,500,000 ordinary shares of 10p each ("Ordinary Shares") at a price of 40p per share, to be used to pay down the Company's debt to lower levels.

On 28 September 2010, it was announced that, following a refinancing of a loan previously scheduled to mature in 2011 for an additional four years, the next debt maturity would be for JPY 10,000m (approximately £77.4m) in May 2012. The Investment Advisor is still in discussion with the lender of this debt for a voluntary, partial pay down of the debt. Substantial progress is being made, and details of these discussions are expected to be announced shortly.

Enquiries