16th Fiscal Period Results(from Jan. 1, 2011 to Jun. 30, 2011)

Invincible Investment Corporation

http://www.invincible-inv.co.jp/eng/(Aug. 29, 2011)1

Table of Contents
Section 1:
Highlights of Performancefor the 16th Fiscal Period

( )
(P.3)

Section 3:
Overview of Operations(P.14)- Financial Highlights- Historical Operating Results- Financial Metrics- Forecast for the 17th Fiscal Period- Portfolio History- Portfolio MAP- Portfolio Diversification- Overview of Occupancy Rates- Impact of the Great East Japan Earthquake- Overview of Unitholders- Overview of Historical Unit Price

Section 2:
Financial Statements
for the 16th Fiscal Period

Section 4:
Series of Transactions with Calliope Godo
Kaisha(P.24)- Income Statement- Balance Sheet- Cash Flow Statement / Financial Statements
pertaining to Distribution of Monies(P.9)- Reasons for the Transactions- Overview of the Transactions- Each of Status before and after the Transactions- Bankruptcy Risk Aversion / Future Prospects etc.

■Disclaimer(Appendix)- Capital Transfer due to the Transactions- Overview of Borrowing Mortgages- Performance by Properties in the 16th Fiscal Period- Appraisal Values & Book Values of the 16th Fiscal Period- Portfolio List

2

Section 1 Highlights of Performancefor the 16th Fiscal Period

3Financial Highlights (1)Dec. 31, 2010
Borrowing(Note 1)

JPY 369 mn ofscheduled
repayment madeJPY 42,965
42 965 million

D
Dec.
31
31, 2010

JPY 42,596
42 596 million+ 1.6%1 6%

L T V(Note 2)

56.6%

Occupancy Rate

Dec. 31, 2010
91.1%

Removal of Statementon Note regarding
the Going Concern Basis

Jun. 30, 2011

J
Jun.
30,
30 2011
58.2%

Average occupancy
rate during the period
91.1％

Jun. 30, 2011
91.2%

As a result of reduction of the finance risks and removal of cause forforfeiture of benefit of time related to existing borrowings, the statement
on “Note regarding the Going Concern Basis”, which INV made since
the semiannual report for the interim fiscal period ended June 2010
submitted for the 16th fiscal period ended June 2011
submitted,
2011, was removed
removed.

(Note 1) For the overview of borrowings, please refer to the page: 29 to 30.
(Note 2) The LTV is calculated using the following formula:.LTV＝ End-of-period Interest-Bearing Debt / End-of-period Total Assets x 100(Note 3) Figures are rounded down to the indicated unit and percentages are rounded down to the first decimal place.

4

Financial Highlights (2)16th Fiscal Period Results against Forecasts and Historical Results
15th Fiscal Period 16th Fiscal Period 16th Fiscal Period(Results) (1)(Initial Forecast)(2) (Results) (3)(2010/1/12010/12/31)
Days of
Operation(2011/1/12011/6/30)(2011/1/12011/6/30)

Compared to 15th Fiscal
Period (3)-(1)Changes(%)

Compared to the Initial 17th Fiscal Period
Forecast (3)-(2)(Forecast)
Changes(2011/7/12011/12/31)

(%)

365

181

181

184

－

－

－

184

Operating
Revenues (thsJPY)

5,348,724

2,343,000

2,277,374- 3,071,349- 57.4- 65,626- 2.8

2,274,000

Operating
Income (ths JPY)

- 5,241,835

867,000

800,343

6,042,178－- 66,657- 7.7- 516,000

Ordinary Income(ths JPY)- 7,078,530

4,000-52,342

7,026,187－- 56,342－- 3,716,000

Gain on Negative
Goodwill (thsJPY))

11,843,160－－- 11,843,160- 100.0－－－

Net Income (thsJPY)

4,757,778

3,000-1,308,522- 6,066,301－- 1,311,522－- 2,756,000

Reversal of
Earned Surplus(th JPY)(ths－

123,000

1,435,861

1,435,861－

1,312,861－

3,026,000

Distribution per
Unit (JPY)

435

200

200

- 235

- 54.0－－200

IssuedInvestment Unit

636,695,,
636,695

636,695
,

－

－

－

－

1,348,292,,(Note 1) The period of operation of the15th fiscal period is 365 days from January 1, 2010 to December 31, 2010.
(Note 2) In conjunction with the Third-Party Allotment conducted on July 29, 2011, number of investment units issued and outstanding increased by 711,597 units to 1,348,292 units.
(Note 3) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place. Furthermore, figures of 16th Fiscal Period (Initial Forecast) and 17th Fiscal Period(Forecast) are rounded down to the million JPY.

5

Historical Operating Results
NOI per Unit: JPY 2,441
Compared to 15th Fiscal Period:
Decrease of JPY 3,760(60.6 % down)
21,812

20,729FFO per Unit: JPY -1,383
Compared to 15th Fiscal Period:
Decrease of JPY 3,333 ( - %)19,738

13,20012,42910,212,6,200(Note 1, 2)(Note 1-3)

2,441
12th

13th

14th

15th

16th

Operating revenues:
JPY 2,277,374 ths
Compared to 15th Fiscal Period:
Decrease of JPY 3,071,349 ths(57 4 % down)(57.4

RecognizedImpairment loss JPY 1,249 mn
by impairmentof New Edobashi Building

12th

13th

14th

1,950

-1,38315th

16th

Net income: JPY -1,308,522 ths
Compared to 15th Fiscal Period:
Decrease of JPY 6,066,301 ths( - %)

5,348,724
4,757,778(Note 4)

1,967,896

12th(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

RecognizedImpairment loss JPY 1,249 mn
by impairmentof New Edobashi Building

2 277 374
2,277,374
1,614,835 1,531,044

13th

14th

15th

16th

735,226

356,806

265,633

12th

13th

14th

-1,308,522

15th

16th

In conjunction with the Merger with LCP investment Corporation, INV split one investment unit into five units effective on February 1, 2010.
NOI per Unit and FFO per Unit are calculated based on the average of the investment units outstanding (605,508 units) during the 15th Fiscal Period and the figures are rounded to the indicated unit.
FFO per unit of 15th Fiscal Period is calculated by excluding the effect of gain on negative goodwill.
Figure excluding the effect of “loss from sales of properties” & “gain on negative goodwill” is JPY 276,973 ths.
Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

6

Financial Metrics
13th Fiscal Period 14th Fiscal Period
Items

Return on Asset (ROA)

15th Fiscal Period 15th Fiscal Period
16th Fiscal Period(Results)(Adjusted Results)

2009/1/1-

2009/7/1-

2010/1/1-

2010/1/1-

2011/1/1-

2009/6/30

2009/12/31

2010/12/31

2010/12/31

2011/6/30

0.8%

0.6%

- 9.0%

0.4%

-0.1%

1.6%

1.2%

- 9.0%

0.4%

-0.1%

1.8%

1.4%

14.8%

0.9%

-4.4%

3.7%

2.7%

14.8%

0.9%

-8.8%

Loan-to-Value (LTV 1)

56.6%

56.0%

62.8%

62.8%

62.6%

Loan-to-Value based on total assets at the end of fiscal period (LTV 2)

54.6%

54.0%

56.6%

56.6%

58.2%

Capital-to-Asset Ratio (fiscal year-end)

42.6%

43.0%

39.8%

39.8%

39.1%

Debt Service Coverage Ratio (DSCR)

3.7X

2.9X

5.7X

2.0X

-0.5X

Net Operating Income (NOI) (ths JPY)

1 117 247
1,117,247

1 063 865
1,063,865

3 754 420
3,754,420

3 754 420
3,754,420

1 554 015
1,554,015

5.2%

4.9%

5.0%

5.0%

4.4%

Depreciation Expense (ths JPY)

289,665284,802964,612964,612428,247

Funds from Operation (FFO) (ths JPY)

669,913550,436

1,241,586

1,241,586-880,274

7.6%

7.6%

8.0%

7.7%

6.7%

annualized
Return on Equity (ROE)
annualized

annualized NOI yield

Implied Cap Rate

・ ROA＝ Ordinary Income / Weighted Average Total Assets during the period x 100
・ ROE＝ Net Income / Weighted Average Net Assets during the period x100
・ LTV(1)＝ End-of-period Interest-Bearing Debt / (End-of-period Interest-Bearing Debt + Unitholders’ Capital + Capital Surplus）x100
・ LTV(2)＝ End-of-period
End of period Interest
Interest-Bearing
Bearing Debt / End
End-of-periodof period Total Assets x 100
・ DSCR＝ Net Income prior to Deduction of Interest / Interest Expenses
・ NOI＝ Rental Revenue-Property Related Expenses + Depreciation Expenses
・Annualized NOI yield=((Rental Revenues-Property Related Expenses + Depreciation Expenses)/ days x 365) / Acquisition Price
・FFO= Net Income + Depreciation Expenses–Gain on Sales of Properties + Loss from Sales of Properties–Gain on negative goodwill
・ Implied Cap Rate = Annualized NOI yield / (Interest-Bearing Debt – Cash and Deposit with banks (including those in trust)+ Deposit Received from Tenants + Total Market Value)(Note 1) Figures of the15th Fiscal Period (Adjusted results) are calculated by excluding the effect from “Loss from sales of properties” and “gain on negative goodwill”.
(Note 2) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

7

Forecast for 17th Fiscal Period (As of Aug. 26, 2011)
16th Fiscal Period (Results)

17th Fiscal Period (Forecast)

2011/1/12011/6/30

2011/7/12011/12/31

Ths JPY

Operating revenues
Rental revenues (1)OOperatingti expenses

Ths JPY%

ChangesThs JPY%%

2,277,374

100.0

2,274,000

100.0-3,374

2,277,374

100.0

2,274,000

100.0-3,3741 4 0311,477,031

64 9
64.9

2 90 000
2,790,000

122
122.7

1 312 969
1,312,969

Property related expenses (2)1,151,606

1,237,000

85,394

Facilities management fees

388,633

446,000

57,367

Taxes and other public charges

161,568

167,000

5,432

5,992

4,000

-1,992Other expenses

167,165

193,000

25,835

Depreciation expenses (3)428,247

425,000-3,2473,247

NOI (1)-(2)+(3)1,554,015

1,462,000-92,015

Rental income (1)-(2)1,125,768

1,037,000-88,768

Asset management fees

150,256

150,000-256

Other operating expenses

175,169

1,403,836

1,228,667

Insurance expenses

Operating income

Non-operating revenues
Non-operating expenses
Ordinary income
Extraordinary income
Gain on forgiveness of debts
Extraordinary loss
Impairment loss
Loss due to disaster
Income before income taxes
Income and other taxes
Net income(Note 2)
(
(Note
3))
(Note 4)

88 9
88.9

800,34335.1-516,000-22.7-1,316,343

-

5,698

0.3

0

0.0

-5,698-100.0858,38437.7

3,200,000

140.7

2,341,616

272.8-52,342-2.3-3,716,000-163.4-3,663,658

-

0

0.0

975,000

42.8

975,000-0

0.0

975,000

42.8

975,000-

1,255,574

55.1

14,0000.6-1,241,574-98.9

1,249,817

54.9

-

-

-1,249,817-100.0

5 757
5,757

03
0.3

14 00014,000

06
0.6

8 243
8,243

143 2
143.2

-1,307,917-57.4-2,756,000-121.2-1,448,083

-

605

0.0

0

0.0

-605

-100.0-1,308,522-57.5-2,756,000-121.2-1,447,478-

Assumptions for Forecast: Assets: 54 properties (Note 3)
 Units
U i iissued
d andd outstanding:di1
1,348,292
348 292 unitsi Reversal of Earned Surplus: JPY 3,026 mn(Note 1)

-0.1

Forecasted Distribution
for the 17th Fiscal Period: JPY 200 per unit (Note 4)

Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
Moreover, figures of the 17th Fiscal Period (Forecasts) are rounded down to the million JPY.
If INV decides to acquire or dispose a property, INV will review and revise the forecast and will disclose the revised
forecast in compliance with the rules of Tokyo Stock Exchange.
INV assumes,, of the 55 properties
p p
held as of today,y, New Edobashi Building
g will be sold during
g the 17th Fiscal Period.
Regarding forecasted distribution for the 17th Fiscal Period, it is the premise that the total distribution amount will be
JPY 269 million by utilizing JPY 3,026 million out of the earned surplus (JPY 3,340 million).

<Effect of the Sales Activityof New Edobashi Building>Planning to sell the trust beneficiary interestof New Edobashi Building which is the mortgageof Term Loan (Shinsei Trust & Banking Co., Ltd.)(hereinafter, the “Securitized
Securitized Loan”)
Loan )The effect from the above activity is follows.
- 16th Fiscal Period ended Jun. 2011
: Extraordinary Loss (Impairment Loss)
JPY1,249 mn- 17th Fiscal Period ending Dec. 2011 (Forecast): Operating Expenses
Expenses→inin the 17th Fiscal Period
Period,assumed a reasonably expected amountas loss from sales of properties associated withthe sale of New Edobashi Building<Recognized “Gain
Gain on Forgiveness of Debts”
Debts
relating to the Securitized Loan>
In the 17th Fiscal Period, recognized “Gain on
Forgiveness of Debts” relating to the Securitized
Loan which had already been conducted as of July29, 2011.
- 17th Fiscal
Fi
lP
Periodi d ending
di D
Dec. 2011 (Forecast)(Ft):Recognized “Extraordinary Income” (Gain on
Forgiveness of Debts) JPY 975 mn<Onetime Expenses as to the transactions (Note)>
In the forecast for the 17th Fiscal Period
Period, expenses
associated with conduction of the transactions (feesto Calliope/ exit fees) were recognized with a single
transaction.
[Breakdown on Non-operating expenses]- Interest Expenses: JPY 800 mn- FinanceFi
relatedl t d costs:
t JPY 2
2,262
262 mn(of which, fees to Calliope): (JPY 336.5 mn)(of which, exit fees): (JPY 1,530 mn)-Other non-operating expenses: JPY 138 mn(Note) As for “the Transactions”, please refer to the page: 24-31.

8

Section 2 Financial Statements
for the 16th Fiscal Period9Income Statement
Items

Operating revenues
Rental revenues (1)Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI(1)-(2)+(3)Loss from sales of properties
Directors' remuneration
Asset management fees
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Bad debt expenses
Other operating expenses
OperatingOpea g income
co e / loss
oss
Non-operating revenues
Interest revenues
Other non-operating revenues
Non-operating expenses
Interest expenses
Finance related costs
Publicub c listing
st g related
e ated costs
Other non-operating expenses
Ordinary loss
Extraordinary income
Gain on negative goodwill
Extraordinary loss
Impairment loss
Loss due to disaster
Income / loss before income taxes
Corporate tax, resident tax and business tax
Tax adjustments
Net income / loss
Retained earnings at the beginning of the period
Unappropriated retained earnings / loss at the end of the period

15th Fiscal Period

16th Fiscal Period( 12 months
Ended Dec. 31, 2010)( 6 months
Ended Jun. 30, 2011)

Ths JPY%

Ths JPY%

Ths JPY%

5,348,724,,
5,348,724
10,590,560
2,558,916
964,6123,754,420
7,362,355
5,400,
327,747
17,17881,84056
613
236,451-5,241,835
5,,835
14,573
2,755
11,818
1,851,268
1,217,526
629,909
2,180
, 80
1,652
-7,078,530
11,843,160
11,843,160
4,764,630
1,209
5,641
4,757,778
30
4,757,809

100.0

2,277,374,,
2,277,374
1,477,031
1,151,606
428,247
1,554,015
2,700,
150,256
7,435
41,316561
123,155
800,343
800,3
3
5,698
887
4,811
858,384
598,410258,318
1,265
, 65
390
-52,342
1,255,574
1,249,817
5,757-1,307,917
605-1,308,522
4,480,847
3,172,324

100.0-3,071,349,,-3,071,349-9,113,528-1,407,310-536,365-2,200,404-7,362,355-2,700,-177,491-9,743-40,523-56-51-113,296
6,042,178
6,0, 8-8,875-1,868-7,006-992,883-619,116-371,590-915
9 5-1,261
7,026,187-11,843,160-11,843,160
1,255,574
1,249,817
5,757-6,072,547-604-5,641-6,066,301
4,480,816-1,585,484

-57.4

198.0
47.8
70.2

-98.0
98 0
0.3

34.6

-132.3
221.4
-

89.1

89.0
89.0

64.9
50.6
68.2

35
35.1
0.3

37.7

-2.3
55.1

-57.4

-57.5
139.3

Changes■NOI: JPY 1,554 mn(Decrease of JPY 2,200 mn)

-86.1
-55.0
-58.6

■Operating Income: JPY 800 mn(Increase of JPY 6,042 mn)⇒15th :Sales of properties conducted→Loss from sales of properties: JPY 7,362 mn⇒ 16th: No sales of properties

-60.9

-53.6

-100.0■Extraordinary Loss: JPY 1,255 mn(Increase of JPY 1,255 mn)⇒Impairment Loss: JPY 1,249 mn:Impairment of New Edobashi building⇒ Loss due to disaster: JPY 5 mn
:Impact of the Great East Japan
Earthquake occurred on Mar.11, 2011

-

-

-33.3

(Note 1) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
(Note 2) The period of operation of the15th fiscal period is 365 days from January 1, 2010 to December 31, 2010.

10

Balance Sheet - Assets
Items

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Accounts receivables
Advances paid
Prepaid expenses
Consumption tax receivable
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment, at cost
Buildings
Equipment
Building improvements
Land
Buildings in trust
Equipment in trust
Building improvements in trust
Tools, furniture and fixtures in trust
Land in trust
Total property, plant and equipment, at cost
Intangible assets
OthersTotal intangible assets
Investment and other assets
Guarantee deposits
OthersTotal investment and other assets
Total non-current assets
Total assets

15th Fiscal Period

16th Fiscal Period( As of Dec.31, 2010)( As of Jun.30, 2011)

Ths JPY

Ths JPY

3,515,629
2,399,430
22,3709,322
147,692-56
6 094 389
6,094,389%

Changes%Ths JPY%80
8.0

2,478,178
2,203,864
23,893776
57,499204,972
4 969 185
4,969,185

2,627,429
38,461
3,144
2,713,620
23,380,314
3 682 786
3,682,786
200,540
54,79037,028,008
69,729,097

91.9

2,599,824
35,487
3,005
2,713,620
22,970,455
3 568 098
3,568,098
193,267
55,25636,018,054
68,157,070

93.2-27,605-2,973-139-409,859-114,688
114 688-7,272466-1,009,954-1,572,027

2,366
2,366

0.0

1,706
1,706

0.0

-660
-660

-27.9

0.0
92.0
100.0

10,00027,29737,297
68,196,073
73,165,258

0.1
93.2
100.0

-60
2,039
1,979
-1,570,707-2,695,911

5.6
-2.3
-3.6

10,06025,25735,317
69,766,781
75,861,170

68
6.8-1,037,451-195,565
1,523-8,546-90,192
204,972
56-1,125,204
1 125 204

-18.5
18 5

-2.3

Property, plant and equipment■ Properties INV held
⇒No sales or purchases of properties⇒No. of properties as of the end of 16th
:55 properties(Total acquisition price: JPY 705 mn)■ Impairment⇒Book value decreased to JPY1,249mn
by impairment of “New Edobashi
Building”(Note 1) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
(Note 2) The period of operation of the15th fiscal period is 365 days from January 1, 2010 to December 31, 2010.

11

Balance Sheet – Liabilities/Net Assets
Items

Liabilities
Current liabilities
Accounts payable
Short-term debts
Current portion of long-term debts
Accrued liabilities
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Unappropriated retained earnings / loss
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

15th Fiscal Period

16th Fiscal Period( As of Dec.31, 2010)( As of Jun.30, 2011)

Ths JPY%

Ths JPY

58.2

109,999
25,796,425
16,800,000
8,617
284,308465
292 611292,611
4,466
43,296,894

2.0
60.2

1,113,610
183,579
1,297,190
44,594,084

144,429
26,165,485
16,800,000
13,724
170,665
593,170295 659
295,659
5,680
44,188,814
1,332,118
183,579
1,515,698
45,704,512%

ChangesThs JPY%

59.2-34,429-369,060-5,107
113,643465-593,170-3,047
3 047-1,213-891,919

-2.0

1.8
60.9

-218,507-218,507-1,110,427

-14.4
-2.4

19,134,417

19,134,417-

6,264,432
4,757,809
11,022,241
30,156,658
30 156 658
30,156,658
75,861,170

6,264,432
3,172,324
9,436,756
28,571,173
28 571 173
28,571,173
73,165,258-1,585,484-1,585,484-1,585,484-1
1,585,484
585 484-2,695,911

39.8
39 8
39.8
100.0

39.1
39 1
39.1
100.0

■ Repaid JPY 369 mn of borrowings
Repaid JPY 369 mn by scheduled repayments during the16th Fiscal Period.
■ BorrowingB
i amount as off theh end
d off theh 16th Fiscal
Fi
l Period:P i d JPY 42,596
42 96 mn
◇ Short-term debt:
JPY 25,796 mn◇ Current portion of long-term debts:
JPY 16,800 mn◇ Loan to Value (LTV)
58.2 %
LTV=End-of-period Interest-Bearing Debt / End-of-period Total Assets x 100

-5.3
-5
5.3
3
-3.6

The 16th Fiscal Period
Net assets per unit JPY 44,874(Units issued and outstanding:
636,695 units)(Note 1) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
(Note 2) The period of operation of the15th fiscal period is 365 days from January 1, 2010 to December 31, 2010.

12Cash Flow Statement /Financial Statements pertaining to Distribution of Monies
Items

Cash flows from operating activities
Net income before taxes
Depreciation expenses
Impairment loss
Loss due to disaster
Gain on negative goodwill
Public listing related costs
Finance related costs
Interest received
Interest paid
Increase (decrease) in allowance for doubtful accounts
Amortization of tenant leasehold and security deposits in trust
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable
Decrease (increase) in guarantee money paid
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease due to sale of tangible assets
Decrease due to sale of tangible assets in trust
OthersSubtotal
Proceeds of interest
Payment of interest
Payment of loss due to disaster
Payment of corporate taxes etc.
Cash flows from operating activities
Cash flows from investment activities
Payment for acquisition of tangible assets
Payment for acquisition of tangible assets in trust
Payment of tenant leasehold and security deposits
Proceeds of tenant leasehold and security deposits
Payment of tenant leasehold and security deposits in trust
Proceeds of tenant leasehold and security deposits in trust
Cash flows from investment activities
Cash flows from financing activities
Proceeds of short-term debt
Repayment of short-term debt
Repayment of long-term debt
Public listing related costs
Finance related costs
Payment of distributions
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Increase in cash and cash equivalents due to the Merger
Closing balance of cash and cash equivalents

15th Fi
Fiscall Period
P i d

16th Fi
Fiscall Period
P i d( 12 months
Ended Dec.31, 2010)( 6 months
Ended Jun. 30, 2011)

Ths JPY

Ths JPY

4,764,630
965,933(11,843,160)
2,180
629,909(2,755)1,217,526(508)(5 774)(5,774)
181,000
14,336
4,261
140,166
583,913(100,092)(331,601)(145 913)(145,913)(97,692)(12,612)3,616,615
35,646,756(435,940)
34,791,176
2,755(1 214 233)
(1,214,233)(7,314)33,572,383(1,307,917)
428,907
1 249 817
1,249,817
5,757
1,265
258,318(887)
598,410(56)(4 324)(4,324)(1,523)(204,972)
60(593,170)(95)(3,252)116 936
116,936(3,047)(1,213)
3,631
542,644887(601 703)(601,703)(2,714)(139)(61,025)(945)(121,318)(192,233)
39 39539,395(1,005,932)
132,462(1,148,571)(143,414)(365,062)
150,878(357,598)

11,499,975(17,960,777)(25,859,000)(2 180)(2,180)(499,513)(304,678)(33,126,174)(702,361)
2,564,776
4,052,645
5,915,060(369,060)(1 265)(1,265)(167,190)(276,877)(814,392)(1,233,017)
5,915,060
4,682,043

Items

15th Fiscal Period

16th Fiscal Period(12 months Ended(6 months Ended

Dec. 31, 2010)

Jun. 30, 2011)

Unappropriated retained earnings(Ths JPY)

4,757,809

3,172,324

Distributions(Ths JPY)

276,962

127,339

Distribution per unit
Retained earnings carried forward(JPY)(Ths JPY)

435

200

4 480 847
4,480,847

3 044 985
3,044,985(Note 1) Figures are rounded down to the indicated unit.
(Note 2) The period of operation of the15th fiscal period is 365 days from January 1, 2010
to December 31, 2010.

13

Section 3 Overview of Operations

14

Portfolio History (Asset Value)

49 properties sold((Total acquisition price : JPY 40 bn))(unit: JPY 100 million)

1,200

1,106

1,000

922

925

884

875

875

875

800

705

600
455

210
200

117

228

Former TGR
TGR

516
377

400

705

392

448

448

440

430

Former LCP
LCP

430

INV (former TGR)
INV(formerTGR)

240

138

0
'04/06 '04/12 '05/06 '05/12 '06/06, '06/12, '07/06, '07/12, '08/06, '08/12, '09/06, '09/12 '10/02 '10/12 '11/06 (Fiscal Period)'06/08 '07/02 '07/08 '08/02 '08/08 '09/02 '09/08
Fiscal Periods of former LCP
INV (former TGR)
No.of Properties
Former LCP
No.of Properteis

17

20

28

29

29

42

47

56

57

62

61

33

36

46

46

44

43

43

61

104

55

55

(Note 1) Asset value is calculated by the acquisition price.
However, the acquisition price of the properties which former LCP held before the effective date of the Merger (Feb. 1, 2010) is calculated in principle by the acquisition price at which
former LCP bought such properties and it is different from the actual acquisition price of INV.
((Note 2)) Figuresgare rounded down to the indicated unit.

15

Portfolio MAP
Tokyo 23 wards

Tokyo (except for 23 wards)& its surrounding area
SaitamaItabashi-ku

Adachi-ku
Adachi
ku
North

Tokyo

Kita-ku

Katsushika-ku

Nerima-ku
Toshima-ku
Bunkyo-ku

Nakano-ku
WestArakawa-ku

Kanagawa

Taito-ku
Sumida-ku

East
Edogawa-ku

Shinjuku-ku

Suginami-ku

Chiba

Chiyoda-ku
Chuo-ku
Chuo
ku

Shibuya-ku
Shibuyaku

Koto-ku
Koto
kuCentral 5
wards
Setagaya-ku

Hokkaido

Minato-ku

Meguro-ku
MkShinagawa-ku
SouthMiyagiOta-ku

Hyogo

Central 5 wards: Shibuya-ku, Shinjuku-ku, Chuo-ku, Chiyoda-ku and Minato-ku
East: Edogawa-ku, Katsushika-ku, Koto-ku, Sumida-ku and Taito-ku
West: Suginami-ku, Nakano-ku and Nerima-ku
South: Ota-ku, Shinagawa-ku, Setagaya-ku and Meguro-ku
North: Adachi-ku, Arakawa-ku, Itabashi-ku, Kita-ku, Toshima-ku and Bunkyo-ku

Fukushima

Aichi
Residences
Offices etc.
Hotels, Seniors etc.

16

Portfolio Diversification<Former TGR> As of the end of
14th Fiscal Period (Dec. 31, 2009)

By Geograp
phyTohoku 1.8%

<LCP> Before the Merger with TGR
As of Jan. 31, 2010
Kansai 2.4%

Chugoku,
Shikoku 0.7%

Saitama 1.9%
Chiba 3.0%

Kyushu10.2%

Central 5
wards 19.1%

Kanagawa
7.5%
Tokyo otherthan 23 wards
3.8%

Chugoku,
Shikoku 2.1%

Chubu 5.1%

East 9.3%
West 8.3%

North 12.8%<INV> As of the end of
16th Fiscal Period (Jun. 30, 2011)
Chubu 1.9%
Hokkaido
1.7%
Tohoku10.2%

Saitama 0.9%
Chiba 0.8%
Kanagawa
5.5%

Hokkaido
H
kk id
4.2%
Kanagawa
3.4%+

Tohoku10.6%

Central 5
wards 48.4%

Central 5
wards 38.1%
North 9.0%

Tokyo otherthan 23 wards
0.8%

East 7.3%

South 14.1%

North 1.9%

South 21.7%

Tokyo otherthan 23 wards
2.6%

East 3.2%

Kansai 0.7%

South
13.5%
West 7.8%

West 3.9%

By Property Tyype

Greater Tokyo Area: 87.3 % (Tokyo 23 wards: 71.1 %)By AgeSeniors 6.8%

Parking lots
6.8%
Commercial
F iliti 4
Facilities
4.0%0%

Residences70.1%

15-19 years
34.3%

Greater Tokyo Area: 85.6 % (Tokyo 23 wards: 75.8 %)Seniors 6.5%

Parking lots
0.1%

Hotels 2.1%

Of f ices 19.1%

20- years
18.7%

Greater Tokyo Area: 75.6 % (Tokyo 23 wards: 71.4 %)0-4 years
24.8%

5-9 years
8.2%
10-14 years
14.0%

Weighted average age: 13.2 years++

Commercial
Facilities 7.9%

Commercial
Facilities 8.3%

Of f ices 21.0%

Of f ices 22.9%
Residences
61.9%

Residences
62.4%

0-4 years
3.8%

20- years
18.5%
0-4 years
33.4%

20- years
28.3%

15-19 years
17.2%
10-14 years
3.0%

5-9 years
44.5%

15-19 years
19 3%
19.3%
5-9 years
28.0%

Weighted average age: 10.0 years(Note 1) For the classification of “Central 5 wards”, “East”, “West”, “South” and “North”, please see P.16 (Portfolio MAP).
(Note 2) “Tokyo”, "Kanagawa, Chiba, and Saitama prefectures" are defined as “Greater Tokyo Area“.
(Note 3) Percentages are calculated based on acquisition price as of Jun. 30, 2011 and are rounded to one decimal place.

10-14 years
4.1%

Weighted average age: 13.4 years

17Overview of Occupancy Rates＜Occupancy Rate of Offices & Commercial facilities
is up from 84.5% to 90.4%＞

100.0%
95.0%■B13 New Edobashi Buildingg
Two new tenants moved in:
Occupancy rate went up
from 51.2% to 75.6%(+24.4%)

90.0%
85.0%
80.0%

g
Plaza Nishigotandag■B14 Lexington
Two new tenants moved in:
Occupancy rate went up
from 62.4% to 82.1% (+19.7%)

75.0%
70.0%
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Year 2011
Residences

Offices &Commercial facilities

Parking lots &Hotels & Seniors

Total

Residences

Offices &Commercial facilities

Parking lots &Hotels & Seniors

Total

End of Jul. 2011

92.1%

90.4%

100.0%

92.8%

End of Jun. 2011

92.6%

84.5%

100.0%

91.2%

End of May 2011

92.6%

84.5%

100.0%

91.2%

End of Apr. 2011

92.7%

84.8%

100.0%

91.4%

End of Mar. 2011

92.4%

85.3%

100.0%

91.4%

End of Feb. 2011

91.2%

85.2%

100.0%

90.7%

End of Jan
Jan. 2011

90 8%
90.8%

85 3%
85.3%

100 0%
100.0%

90 5%
90.5%

(Note 1) Occupancy rate = total leased area / total leasable area x100
(Note 2) Percentages are rounded to one decimal place.

18

Impact of the Great East Japan Earthquake (1)Five properties in the Tohoku Region and Damages of the Earthquake
No.

Property Name

Location

Property Type

Structure

Seismic Intensity(Note 1)PML

Building Damage Situation

Repair Costs(Note 2)

A64

Royal Park Omachi

Aoba-ku,Sendai City,
Miyagi Prefecture

Residence

SRC

6-lower

10.6%

Exfoliation of tiles on walls, cracks etc.

JPY 4 mn

A65

Lexington Square Haginomachi

Miyagino-ku, Sendai City,
Miyagi Prefecture

ResidenceRC

6-lower

4.4%

Craks, deformed window sash/furnitureetc.

JPY 6 mn

B16

Ohki Aoba Building

Aoba-ku,Sendai City,
Miyagi Prefecture

OfficeRC

6-lower

1.0%

Damaged pallet of multi-story parking
lot etc.

JPY 1 mn

B17

Lexington Plaza Hachiman

Aoba-ku,Sendai City,
Miyagi Prefecture

Commercial
FacilityS

6-lower

7.3%

Fallen concrete blocks of external unit
bases, cracks on walls etc.

JPY 6 mn

B18

Loc Town Sukagawa

Sukagawa City,
Fukushima Prefecture

Commercial
FacilityS

6-upper

10.6%

Fall
F
ll off partt off shallowh llceiling,iliddamageddwalls and ceilings, damaged
equipment, ground collapse etc.

JPY 30 mn

Damage and impact of the Earthquake: there is no damage which may hinder INV's operations or has an impact on
its building value.

Aomori Pref.

<Investigation of damages>- INV grasped the damage situation on the basis of the manual of the Asset Manager from the next day of March 11,
2011, which the Great East Japan Earthquake occurred.
- INV had on-site building investigations conducted by a third party investigation entity (Tokio Marine & Nichido Risk
Consulting Co., Ltd.) and received more detailed report from them on March 17 and March 23 in 2011.
- From March 12, 2011 to May 24, 2011, INV had conducted repair works for Loc Town Sukagawa with a severe impact ofq, to make it shorter the term of inability
y to operatep
the shop.
p
the Earthquake,

Akita Pref.
Iwate Pref.

Yamagata
Pref.

Miyagi Pref.

B17
B16

B18

Fukushima
Pref.

A64
A65

<Impacts>- As for both "Royal Park Omachi" and "Lexington Square Haginomachi", these occupancy rates are still stable and there
are no exceptional damages on them. So INV plans to conduct required repair works one by one.
- Although the multi-story parking lot of "Ohki Aoba Building" was not able to operate, as a result of urgent repair work,
there are no exceptional impacts. Also, new tenant moved in that propertyas of May 1, 2011 and the end occupancy rates
p to 96.9 % ((Note 3).
)
went up- Though the Earthquake disabled some shops in "Lexington Plaza Hachiman" from opening for business, thosereopened until March 24, 2011. Since there are no tenants who moved out and no reduction of contractual rent, there isno big difference in its level of operation with before-the-Earthquake.
- As mentioned above, the repair work had already finished for Loc Town Sukagawa. Also, INV had an agreement not to
reduce contractual rent due to the effect of the Earthquake with a master lease company and in June, the same year, newshops opened and there are no exceptional impacts at this point in time.

(Note 1) As for seismic intensities above, the seismic intensities of the Great East Japan Earthquake which occurred on March 11, 2011 were written and those are based on the ones announced by Japan
Meteorological Agency on March 30, 2011.
(Note 2) As for “B18 Loc Town Sukagawa”, the repair works had already done and the repair costs above are fixed. Other than Loc Town Sukagawa, repair costs above are rough estimates.
Furthermore, regarding the five properties, INV entrusted Tokio Marine & Nichido Risk Consulting with investigation of damage and received the report from them. However, the abovementioned
repair costs are not based on the said report but the estimates which were decided after INV negotiated with property management companies etc. and which INV plans to conduct during the 17th
Fiscal Period ending December, 2011. In addition, those costs do not include temporary repair cost or emergency treatment costs(Note 3) Master lease contract with the type of fixed rent is adopted in Ohki Aoba building.

19Impact of the Great East Japan Earthquake (2)B18 Loc Town Sukagawa<Loc Town Sukagawa>
Suburban-type commercial facility placed in Kamogawa city, Fukushima Prefecture. It consists of supermarket, pharmacy, clothing store,
menswear store, general shop, amusement center, bookstore and restaurant etc. Lot area 74,076.22㎡, total leasable area 18,440.58㎡(INV's portion).
This property is facing the highway which is a central point of commercial activity and is easily accessible by car. In addition,
composition of tenants is well balanced. Therefore, this property attracts customers well.
Jan. to Operating revenues w ere shifting betw een 120% and 130% of the ratio
Feb., 2011 of the previous year and remained strong.

Mar. 11,2011

The Great East Japan Earthquake occurred (the seismic intensity of thesaid area is 6-upper).
Sh ll
Shallow
ceiling,ili
w alls,ll iinteriort i andd groundd etc.
t are ddamaged
d (E
(Each
h off
shops w as closed).

Mar.12 toRepair w ork w as conducted (the amount to be borne by INV: JPY 30
May 24,
million). Also, shops reopened for business.
2011

Anchor tenant (the supermarket) is competitive and operating revenuesof this commercial facility w as going w ell.
Although the Great East Japan Earthquake forced the shops to close,
those shops made all efforts to reopen. As a result, operating revenues
since April 2011 exceeded the ones of the previous year and remained
S
Summary
strong.
t
In
I viewi
off theth fact
f t thatth t partt off shopshw ere nott able
bl tot reopenfrom April to May in the same year, there are small impacts of the
Earthquake on their operations and those facts support the theory that
this commercial facility is highly competitive and sound.
(Ref.) Akatorii green mall w hich is a rival commercial facility of Loc Tow n
Sukagaw a gave up its business as of April 29, 2011.

<Year 2011, Loc Town Sukagawa; Compared with that of the same period in the previous year>

140.0%
Despite of the Earthquake,
operating revenues areabove the previous year
and have remained firm

130.0%
120.0%
Great EastJapan
Earthquake

110.0%
100.0%
90.0%
80.0%

Th periodThe
i d off
earthquake repair works

0 0%
70.0%
60.0%

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Data source: LOC development Co., Ltd.

20

Overview of Unitholders (1)Major Unitholders (Top 10)
15th Fiscal Period (As of Dec. 31, 2010)

16th Fiscal Period (As of Jun. 30, 2011)
Number ofunits held

Name

Number ofunits held

Name

(%)

(%)

1 New Mission Funding LLC

129,400

20.32

1 New Mission Funding G.K.

129,400

20.32

2 PROSPECT JAPAN FUND LIMITED

53,4228.39

2 GOLDMAN SACHS INTERNATIONAL

90,255

14.17

3 The Nomura Trust and Banking Co., Ltd. (Investment trust accounts)

40,819

6.41

3 PROSPECT JAPAN FUND LIMITED

52,452

8.23

4 GOLDMAN SACHS INTERNATIONAL

32,178

5.05

4 The Nomura Trust and Banking Co., Ltd. (Investment trust account)

35,7705.61

5 Japan Trustee Services Bank, Ltd. (Investment trust account)

30,1784.73

5 Japan Trustee Services Bank, Ltd. (Investment trust account)

21,6683.40

6 BBH FOR OPPENHEIMER QUEST INTERNATIONAL VALUE FUND

14,6062.29

6 BBH FOR OPPENHEIMER QUEST INTERNATIONAL VALUE FUND

14,606

2.29

7 CGML-LONDON EQUITY

13,311

2.09

7 BBH FOR OPPENHEIMER MASTER INTERNATIONAL VALUE FUND, LLC

11,244

1.76

8 CGML-IPB CUSTOMER COLLATERAL ACCOUNT

13,003

2.04

8 Trust & Custody Services Bank, Ltd. (securities investment account)

9,085

1.42

9 The Master Trust Bank of Japan, Ltd. (Investment trust accounts)

8,169

1.28

9 The Master Trust Bank of Japan, Ltd. (investment trust account)

8,058

1.26

10 MINAMI-NIPPON Bank, LTD

7,879

1.23

10 CGML-IPB CUSTOMER COLLATERAL ACCOUNT

7,552

1.18

Total

342,965

53.86

Issued investment units

636,695

Total

380,090

59.69

Issued investment units

636,695(Ref.) Reporting of Major Unitholders
Firm nameSubmitted on

No. of units held (unit)

Ratio (%)

Calliope Godo Kaisha

Aug. 3, 2011

609,94245.24

Prospect Asset Management, Inc.

Aug. 15, 2011

219,354

16.27

Nikko Asset Management Co., Ltd.

Aug. 19, 2011

53,183

3.94(Note 1) Percentages are rounded to two decimal places.
(Note 2) As a result of issuance of 711, 597 of new investment units of Invincible Investment Corporation by way of Third-Party Allotment whose payment has been
completed as of July 29, 2011, its number of units held became 1,348,292 units.
As for the issuance of new investment units by way of Third-Party Allotment, please refer to the page: 26.

21

Overview of Unitholders (2)Breakdown by number of unitholders
Other domestic companies
1.2% (146 persons)Foreign investors
0.5% (64 persons)Financial institutions(incl. securities companies)
0.3% (34 persons)

Other domestic companies
1.1% (126 persons)Financial institutions(incl. securities companies)
0.3% (32 persons)Individual & Others
98.1% (10,940 persons)Individual & Others
98.0% (11,742 persons)

As of the end of 15th Fiscal Period (Dec. 2010)
Number of total unitholders: 11,986 persons

Foreign investors
0.5% ((53 persons)p)

As of the end of 16th Fiscal Period (Jun. 2011)
Number of total unitholders: 11,151 persons(Note) Percentages are rounded to one decimal place.

Breakdown by number of units held
Foreign investors
25.0% (159,460 units)
Individual & Others
35 3% (22435.3%
(224,465
465 units)
Other domestic companies
22.3%(141,693 units)
Financial institutions(incl. securities companies)
17 4% (11117.4%
(111,077
077 units)

As of the end of 15th Fiscal Period (Dec. 2010)
Issued investment units: 636,695 units

Foreign investors
30.9%(196 421 units)(196,421

Other domestic companies
22.1%(140 712 units)(140,712

Individual & Others
32.7%(207,947 units)
Financial institutions(incl. securities companies)
14.4%(91,615 units)

As of the end of 16th Fiscal Period (Jun. 2011)
Issued investment units: 636,695 units

22

Overview of Historical Unit Price

4th
(Yen)

5th

6th

7th

8th

9th

10th

11th

12th

13th

14th

Dec.31, Jun.30,
2004
2005

16th
(Volume)

Unit Price of OSE
Unit Price of TSE
VolumeMay.31,
2004

15th

Dec.31, Jun.30,
2005
2006

Dec.31,
2006

Jun.30, Dec.31, Jun.30,
2007
2007
2008

Dec.31, Jun.30,
2009
2008

Dec.31,
2009

Dec.31, Jun. 30,
2011
2010

(Note 1) Regarding the volume of transaction from Aug. 1, 2006 to Oct. 6, 2007, total volume of the Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange(OSE) is used in the above chart.
(Note 2) Regarding unit prices above, the closing prices of OSE are used until July 31, 2006 and those of TSE are used since August 1, 2006.
(Note 3) In order to focus trading on one securities exchange and reduce administrative tasks and costs accompanying cross listing, TGR (INV) was delisted from the OSE on October 6, 2007.
Consequently, INV is listed only on the TSE as of today.
(Note 4) TGR (INV) merged with LCP effective on Feb. 1, 2010 and split its investment units with one investment unit into five unit.
(Note 5) For the purpose of providing continuity to the unit prices, the unit prices on or before Jan. 31, 2010 as indicated in the above chart are the figures adjusted by dividing the actual unit
prices by five.

23

Section 4 Series of Transactions
with Calliope Godo Kaisha(Note) Hereinafter, the “Transactions”

24

Reasons for the Transactions<Market Environment><Business Environment> The Japanese economy in 2011 continues to face a severe
situation, and fears of deflation and unemployment remaining,
though some sectors have begun to show signs of recovery against
the backdrop of the recoveryy in world economyy
 The future of the economy has become even more uncertain, with
consumer sentiment declining and production decreasing due to theimpact of the nuclear power plant accident and other factors after
the Great East Japan Earthquake Statement on “Note regarding the Going Concern Basis”
 The event of default occurred for part of INV’s borrowings
 The future refinance of / further extension of the maturity date for,th existingthei ti bborrowings
i
h
has b
been uncertaint i<O er ie of the transactions><Overview
 Invitation of New Sponsor
Invited Calliope Godo Kaisha (hereinafter, “Calliope”), an affiliate of FIG which is the first publicly listed alternative investment
manager in the U.S. and a global investment firm as a new sponsor
 Procurement of equity financing through Third-Party Allotment
Procured the equity financing through Third-Party Allotment with Calliope as the main allottee
 Conducted new borrowings and repayment /modification of terms, of borrowings
INV conducted the new borrowings and repayment of the existing borrowings except for part of the Securitized Loan and themodification of terms of the Securitized Loan through the strong relationship of Fortress (Note) with financial institutions both inJapan and abroad. This provided INV with a certain expectation of realizing the repayment of the Securitized Loan.
(Note) Calliope, FIG and its affiliates collectively referred to as “Fortress”<Reasons for the transactions> Aversion of Bankruptcy Risk / Removal of an event of default occurred for part of INV’s borrowings

Foundation for the improvement / normalization of financial standing A certain expectation of realizing the repayment of all of the existing borrowings: Removal of statement on “Note regarding the Going
Concern Basis”
 Lengthening loan periods: Weighted average period of new loans =4.4 years
 Improvement of Loan to Value (LTV) (Note): from 62.6% to 53.3%(Note) LTV = Interest-bearing debt / (Interest-bearing debt + unitholders’ capital (including retained earnings on unitholders’ capital)) x 100

Improvement of INV’s creditworthiness Enabling activities for internal and external growth etc and plans/implementation for strategies of the medium-to-long term25

Overview of the Transactions
Issuance of new investment units by way of Third-Party Allotment

Change of Stockholders of Asset Manager

 INV conducted equity financing through Third-Party Allotment
with an affiliate of FIG, Calliope (approximately JPY 6 billion)
and three affiliate companies (approximately JPY 1 billion)of
Prospect Japan, a major unitholder of INV and the total paidin amount is approximately JPY 7 billion.

 Transferred 8,372 stocks of the outstanding stocks (8,600
stocks) of CSNT(Asset Manager) to the new sponsor(C lli(Calliope)) as off JJulyl 2929, 2011
 The parent company of Asset Manager was changed from
“The LCP Group L.P.” to “Calliope”.

<Issuance of new investment units>

New long-term Debt

Number of new
investment units

711,597 units

Total issue priceJPY 6,999,979,689

Allottee andnumber ofinvestment units tobe alloted

Calliope Godo Kaisha 609,942 units
p Investments 64,043,
units
Stanhope
Prospect Japan Fund Limited 24,397 units
Permal Prospect Japan Limited 13,215 units

Issue price

JPY 9,837 per unit

 For the sake of repayment in full of the existing borrowings
except for part of the Securitized Loan, INV procured equity
financing through Third-Party Allotment, and also new
borrowings, which amount JPY 31,300 million as of July 29,
2011.
Modification of terms and conditions of the Securitized Loan

Issued investment
units

1,348,292 units (After the Third-Party Allotment)

Use of proceeds(mn JPY)

Part of funds used to repay borrowings (theSecuritized Loan) (principal amount if JPY
16,800 million)

2,910Part of funds used to repay borrowings(borrowings
(b
i
under
d th
the T
Term L
Loan ((principal
i i lamount is JPY11,056 million)
and borrowings principal amount is JPY3,608
million)

1,664

Loan interest reserves, loan-related expenses(loan fees and lender expenses) and funds forpartial repayment of loans as agreed, funds forloan interest payment excluding loan interest
reserves, cash on hand including funds forpayment of repair work and others, etc.

2,365

 INV repaid JPY 10,210 million out of the principal of JPY
16 800 million on July 29
16,80029, 2011 and the lender released INVfrom repayment of JPY 975 million out of the loan principal,
and the repayment date of the remaining principal of JPY
5,615 million was set at January 31, 2012.
 The collateral properties and nonexempt properties of thesaid loan whose remaining principal is JPY 5,615 million
was limited to the property: the trust beneficiary interest inreal estate for New Edobashi Building (hereinafter, the“beneficiary interest”).
 As for the beneficiary interest, INV plans on selling it during
the fiscal period ending December 2011.
 If INV is not able to sell the beneficiary interest inaccordance with the terms modified, INV offered thebeneficiary interest to the lender in lieu of repayment of theremaining principal on the maturity date, January 31, 2012.

26

Each of Status
before and after the Transactions (1)Overview of Unitholders

Change of Stockholders of Asset Manager＜After the Transactions＞＜Before the Transactions＞
A off J
As
July
l 29
29, 2011
Number ofunits held

Name

(%)

Company name(As of July 28, 2011)

N b off
Numberstocks held
(Stocks)

Ratio
Rti offstocksheld (%)

1 Calliope Godo Kaisha

609,94245.23

The LCP Group L.P.

5,596

65.07

2 New Mission Funding G.K.

129,400

9.59

KYOKUTO SECURITIES CO., LTD.

1,104

12.84

3 GOLDMAN SACHS INTERNATIONAL

90,255

6.69

NISSHIN FUDOSAN Co., Ltd.

608

7.07

4 PROSPECT JAPAN FUND LIMITED

76,849

5.69

YAHAGO CONSTRUCTION CO., LTD.

608

7.07

5 Stanhope Investments

64,043

4.74

ANABUKI KOSAN INC.

228

2.65

6 The Nomura Trust and Banking Co., Ltd. (Investment trust account)

35,7702.65

Suncityy CO.,, LTD.

228

2.65

7 Japan Trustee Services Bank, Ltd. (Investment trust account)

21,668

1.60

BIG CO., LTD.

228

2.65

8 BBH FOR OPPENHEIMER QUEST INTERNATIONAL VALUE FUND

14,606

1.08

8,600

100.009 Permal Prospect Japan Limited

13,215

0.98

10 BBH FOR OPPENHEIMER MASTER INTERNATIONAL VALUE FUND
FUND, LLC

11 244
11,244

0 83
0.83

Total

1,066,992

79.13

Issued investment units

1,348,292

Total＜After the Transactions＞
Company name(Note 1) The ratio of investment units held to the total number of issued investment units in the abovetable is rounded down to the second decimal place.
(Note 2) The table above shows the condition of unitholders in the event the Third-Party Allotment is
executed on the condition that the content of the unitholder registry as of June 30, 2011 has
not changed. Therefore, the actual condition of unitholders might be different from the above.
(Note 3) For “<Before the Transactions> Overview of Unitholders”, please see “Overview of Unitholders(1); Major Unitholders (Top 10);16th Fiscal Period (As of Jun. 30, 2011) “ in the page: 21.

Calliope Godo Kaisha
BIG CO., LTD.
Total

(As of July 29, 2011)

Number ofstocks held
(Stocks)

Ratio ofstocksheld (%)

8,372

97.35

228

2.65

8,600

100.0027

Each of Status
before and after the transactions (2)Status of Borrowings
Diversifying the dates for repayments

Lengthening loan periods<Before the transactions>
The maturity dates of all loans were coming on July 29, 2011
(mn JPY)<Beforethe transactions><Afterthe transactions>Short-term Debt

Long-term Debt

Increasing in “fixed interest rate debts to total”

Jul. 29,
2011

Other than Securitized Loan

Securitized Loan

<After the transactions>
Realization of diversifying the dates for repayments (Note 1)<Beforethe transactions>(mn JPY)<Afterthe transactions>Jan. 31,
2012
Variable Rate

Fixed Rate

Jul. 29,
2014

Jan. 30,
2015

Securitized Loan
Prudential LPS Loan
Syndicate Loan A(Note 1) Weighted average period of new loans =4.4 years(Note 2) In this page, <Before the transactions> means <July 28, 2011> and <After the transactions> means <July 29, 2011>.

Jan. 25,
2015

Jan. 25,
2018

Jan. 25,
2019

Shinsei Trust Loan A
Shinsei Trust Loan B

28

Each of Status
before and after the transactions (3)-1
Status of Borrowings<Before the transactions>
Loan Name

Lender(As of July 28, 2011)

Borrowingdate

BorrowingamountInterest rate
(per annum) etc
etc.

Maturity
y dateNov. 24, 2009

JPY 11,056 mn

2.68000％
Variable rate (Note)

July 29, 2011

Nov. 24, 2009

JPY 3,608 mn

2.68000％
Variable rate (Note)

July 29, 2011

Feb. 3, 2010

JPY 11,131 mn

1.68000％
Variable rate (Note)

July 29, 2011

3.64000%
VariableVi bl ratet (N(Note)t )July 29, 2011

Aozora Bank, Ltd.
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
Resona Bank,
Bank Limited
Term Loan

The Nishi-Nippon City Bank, Ltd.
The Musashino Bank, Ltd.
Shinsei Bank, Limited
Th ChuoThe
Ch Mitsui
Mi i T
Trust anddBanking Company, Limited

24th Individual
Credit Loan

Aozora Bank, Ltd.
The Chuo Mitsui Trust andBanking Company, LimitedAozora Bank, Ltd.

Term Loan D

Resona Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
The Musashino Bank, Ltd.
Subtotal of short-term Debt

Securitized Loan

Shinsei Trust & Banking Co., Ltd.

JPY 25,796 mn
Mar. 30, 2007

JPY 16,800 mn

Subtotal of lond-term debt to be repaid within one year

JPY 16,800 mn

Total debt

JPY 42,596 mn(Note) Interest rate applicable from July 1, 2011 to July 29, 201129

Each of Status
before and after the transactions (3)-2
Status of Borrowings<After the transactions>
Loan Name

Securitized Loan

(As of July 29, 2011)

Lender

Shinsei Trust & Banking
Co., Ltd.

BorrowingBidate

BorrowingBiamountI tInterest
t ratet(per annum) etc.

Maturity dateMar. 30, 2007

JPY 5,615 mn

3.64031%
Variable rate (Note 1)

Jan. 31, 2012

Subtotal of long-debt to be
repaid within one year

Prudential LPS
Loan

Prudential Mortgage Asset
Holdings 1 Japan
Investment Limited
Partnership

JPY 5,615 mn
JPY 3,750 mn
Jul. 29, 2011

JPY 3,620 mn

Jan. 25, 2017
2.50000％
Fixed rate

JPY 3,630 mn

Jan. 25, 2018
Jan. 25, 2019

Citibank Japan Ltd.

Syndicate Loan A

Shinsei Bank, Limited

Jul. 29, 2011

JPY10,100 mn

2.44000％
Variable rate (Note 2)

Jul. 29, 2014

The Chuo Mitsui Trust andBanking Company, Limited
Resona Bank, Limited
Shinsei Trust
Loan A

Shinsei Trust & Banking
Co., Ltd.

Jul. 29, 2011

JPY 7,300 mn

8.50000％
Fixed rate

Jan. 30, 2015

Shinsei Trust
Loan B

Shinsei Trust & Banking
Co., Ltd.

Jul. 29, 2011

JPY 2,900 mn

9.50000％
Fixed rate

Jan. 30, 2015

Subtotal of long-term debt

JPY 31,300 mn

Total debt

JPY 36,915 mn(Note 1) Interest rate applicable from July 30, 2011 to August 31, 2011
(Note 2) Interest rate applicable from July 29, 2011 to October 31, 201130

Bankruptcy Risk Aversion /Future Prospects etc.
Aversion of Bankruptcy Risk / Removal of an eventof default occurred for part of INV’s borrowings
Removal of Statement on “Note regarding the Going Concern Basis”

 By conducting the transactionstransactions, the risk of financial
bankruptcy related to the existing borrowings was averted andthe event of default occurred for part of INV’s borrowings wasremoved. As a result, the statement on “Note regarding theGoing Concern Basis” was removed.
Future Activities

New Sponsor’s Profile
Company nameCalliope Godo Kaisha

Location

2-12-3, Minami -Azabu Minato-ku, Tokyo,
JAPAN

Title/ name ofrepresentative

Executive Officer: Kazumasa Takizawa

Capital

JPY100,000 (as of the date of this document)

Date of establishment

March 14, 2011

Major business

Investment real estate-related instruments inJapan, including investment equity ininvestment corporations

Stockholders (Ratio ofinvestment)

CalliopeC
lli
Holdings
H ldi
Ⅰ LLC (99%)
Calliope Holdings Ⅱ LLC (1%)

Remarks

An affiliate of FIG

Raise the quality of/ reconstruct the portfolio

 INV will maximize the profit-earning capacity of its portfolio
and replace assets appropriately and in a timely manner. By
d i so, INV will
doing
ill workk tot raisei theth quality
lit off andd reconstructt t
its portfolio.
Strengthening the bank formation

 INV attempts to obtain additional financing through Fortress’
strong relationship with financial institutions both in Japan andabroad.
Issues
Always remain faithful to the foundation of its business,business "Asset
Asset Finance”
Finance By taking into consideration and conducting each activities
above, INV will attempt to achieve steady internal growth andexternal growth, and to stabilize its financial status.
 In the medium-to-long term, INV will strive to establish at an
early stage a foundation that enables activities for further
enhancement of unitholder value, such as realizing property
acquisitions through capital increase by way of public
offerings, which in its nature may be the core of the growthstrategy of a REIT.

FIG Profile
Company name

Fortress Investment Group LLC

Location

New York in the U.S.

Locations of anaffiliate

Tokyo, Singapore
Tokyo
Singapore, Dallas,
Dallas Frankfurt,Frankfurt London,
LondonLos Angeles, New Canaan, Philadelphia,Rome, San Francisco and Sydney

No. of employee

About 900 employees (as of Mar. 31, 2011)

Date of establishment

Year 1998

Major business

Investment management business

Remarks

Amount invested: Approximately USD 43.1
billion (as of Mar. 31, 2011)31

Disclaimer◆ This material is for informational purposes only and not for solicitation to invest in, or recommendation to buy,
certain products of Invincible Investment Corporation (INV). You should consult with securities firms if you intend topurchase investment units of INV.
◆ This material does not constitute or form a part of any disclosure document or an asset management reportrequired by the Financial Instruments and Exchange Act of Japan or regulations thereunder, the Investment Trustand Investment Corporation Act of Japan or regulations thereunder, or the listing rules of the Financial Instruments
Exchanges or other related rules and regulations.
◆ This material contains forward-looking statements and these statements are based on certain assumptions andjudgments in consideration of currently available information; therefore there may be currently unknown risks anduncertainties in such statements. The contents of forward-looking statements are subject to such risks,
uncertainties, assumptions and other factors. Accordingly, there is no assurance as to actual business performance,
results of operations or financial conditions.
◆ INV has given its attention that the information provided herein does not contain mistakes or omissions.
However, there is no assurance given as to the accuracy, certainty or completeness, validity or fairness of any
such information and such information is subject to revision or retraction without prior notice.

INQUIRIES:
Consonant Investment Management Co., Ltd. (Asset Manager of INV)
Planning & Finance Department
Tel. +81-3-3272-7314 (Investor Relations)32

Appendix

(Appendix) Capital Transfer
due to the Transactions
 INV repaid all of the existing borrowings except for part of the Securitized Loan (JPY 10,210 million out of the principal of
JPY 16,800 million, Term Loan JPY 11,056 million, 24th Individual Credit Loan JPY 3,608 million and Term Loan (D) JPY（単位：百万円）
11,131 million due to the Transactions.
(Units; mn JPY)

Payment
Repayment of Term Loan
Repayment of 24th Individual

11,056

Credit Loan

3,608

Repayment of Term Loan (D)11,131

Partial repayment of Securitized
Loan
Fees tto C
F
Calliope
lli
Loan interest reserves, loanrelated expenses (loan fees andlender expenses) and fees andproceeds for partial repayment ofloans as agreed
Proceeds for loan interest
payment excluding loan interest
reserves
Cash on hand including
proceeds for payment of repair
work and others, etc.
Total

Procurement
Proceeds from Third-Party
Allotment
S di t d Loan
SyndicatedLA

10,100Shinsei Trust Loan B

2,900

Prudential LPS Loan

11,000CashCh on handh dProceeds from Third-Party
Allotment
Shinsei Trust Loan A

10,210C h on hand
Cash
h d

336

38,708

Total(Note) The amount is rounded down to the indicated unit.

1/5

131
2,910
7,300
336

Proceeds from Third-Party
Allotment

2,365

1,664

2,365

38,708

(Appendix) Overview of Borrowing Mortgages
No. ofProperties

Appraisal
Values as ofJun. 2011

New Edobashi Building

1

JPY 6,050 mn

Jan. 25, 2017

Nisshin Palacestage Daitabashi, Nisshin Palacestage HigashiNagasaki, Growth Maison Shin-Yokohama, Belle Face UenoOkachimachi, Growth Maison Yoga, Shibuya-Honmachi
Mansion, City Heights Kinuta and Foros Nakamurabashi

8

JPY 6,344 mn

Jan. 25, 2018

Growth Maison Gotanda, Growth Maison Kameido, Emerald
House, Growth Maison Ikebukuro, Route Tachikawa, College
Square Machida, Belair Meguro and Wacore Tsunashima I8

JPY 5,896 mn

Jan. 25, 2019

Harmonie Ochanomizu, Suncrest Shakujii-Koen, Grand Rire
Kameido, Acseeds Tower Kawaguchi-Namiki,
KameidoKawaguchi Namiki Capital Heights
Kagurazaka, Growth Maison Kaijin, College Square Machiya
and Kindai Kagakusha Building

8

JPY 6,087 mn

21

JPY 24,622 mn

Loan Name

BorrowingAmountMaturity Date

Securitized Loan

JPY 5,615 mn

Jan. 31, 2012

JPY 3,750 mn

JPY 3,620 mn

Prudential LPS
Loan

JPY 3,630 mn

Mortgages

Syndicate Loan A

JPY 10,100 mn

Jul. 29, 2014

City House Tokyo Shinbashi, Winbell Kagurazaka,
Nishiwaseda Cresent Mansion, Lexington Square
Akebonobashi Casa Eremitaggio,
Akebonobashi,
Eremitaggio Towa City Coop Shinotsuka
II, Bichsel Musashiseki, Lexel Mansion Ueno Matsugaya, Towa
City Coop Sengencho, Royal Park Omachi, Lexington Square
Haginomachi, Visconti Kakuozan, Lexington Square Daitabashi,
Lexington Square Honjo Azumabashi, AMS TOWER Minami 6Jo, Cross Square NAKANO, Ohki Aoba Building, Lexington
Plaza Hachiman , Loc Town Sukagawa,g
ShinjukujIsland andStop Parking Kanda-Sudacho

Shinsei Trust
Loan AJPY 7,300 mn

Jan. 30, 2015

Spacia Ebisu and Lexington Plaza Nishigotanda

2

JPY 11,000 mn

Shinsei Trust
L
Loan
B

JPY 2,900,
mn

Jan. 30,, 2015

Bon Sejour Chitose Funabashi, Bon Sejour Yotsugi, Bon
Sejourj
Hino,, Bon SejourjMusashi Shinjo,
j , Bon Sejourj
Komaki,,Bon Sejour Hadano Shibusawa and Bon Sejour Itami

7

JPY 4,709
,
mn

Total

JPY 36,915 mn

-

-

55

JPY 64,708 mn

2/5

(Appendix) Performance by Properties in the 16th Fiscal Period(unit:JPY ths)
ＮＯＩ(①－②+③)

NOI Yield(Acquisition
Price Basis(%))(Note 1)

NOI Yield(Appraisal
Value Basis(%))(Note 2)

20,756

28,6794.6

5.3

20,372

31,320

5.1

5.6

4,350

18,00322,353

5.1

5.0

1,745

5,862

18,89524,757

4.7

5.0

173

5,297

9,360

25,76235,123

4.7

6.1

138

5,470

6,812

19,80926,622

3.8

4.7

3,260

271

4,157

5,946

15,737

21,684

4.0

4.4

2,573

136

4,700

5,921

17,60623,527

4.5

4.7

5,046

1,807

102

3,250

5,355

18,78524,141

4.8

5.3

9,165

204

1,919

130

1,425

5,484

17,45422,9395.1

5.2

14,803

3,708

1,139

93

4,714

5,148

9,467

14,616

3.6

4.3

806

12,823

2,694

1,431

95

4,821

3,779

9,867

13,647

3.5

4.6

2,522

11,131

1,880

1,117

131

4,317

3,684

10,95014,634

4.4

4.9

620

10,720

2,668

927

85

5,103

1,935

7,733

9,668

3.0

3.3

14,108

1,594

11,408

4,883

941

92

3,859

1,631

4,295

5,926

1.8

2.6

27,45422,303

5,151

17,665

3,781

1,219

86

7,539

5,038

9,789

14,8274.8

4.7

A42 Capital Heights Kagurazaka

17,632

16,789842

10,564

3,278

1,112

186

4,067

1,918

7,068

8,986

3.0

3.4

A43 College Square Machida

18,26818,268

-

4,418

244

1,035

105

531

2,501

13,84916,350

5.6

6.4

A44 Belair Meguro

15,641

14,711929

10,794

2,370

869

70

5,282

2,202

4,846

7,049

2.4

2.7

A45 Wacore Tsunashima Ⅰ

18,945

17,971

973

12,510

3,729

952

78

3,615

4,135

6,435

10,570

3.7

4.2

A46 Foros Nakamurabashi

18,601

17,223

1,378

11,162

2,563

1,052

94

3,240

4,212

7,438

11,651

4.1

4.6

A47 Growth Maison Kaijin

22,34920,952

1,397

12,463

4,347

2,187

172

745

5,011

9,886

14,8975.4

7.0

A48 College Square Machiya

14,706

14,706

-

6,081

12

1,015

81

1,422

3,549

8,624

12,173

4.8

5.1

A51 City House Tokyo Shinbashi

87,79281,851

5,941

41,14816,379

5,258

81

6,363

13,064

46,64459,7084.8

4.9

A52 Winbell Kagurazaka

102,176

93,247

8,929

39,913

11,288

6,735

150

6,232

15,50662,26377,770

4.8

4.9

A53 Nishiwaseda Cresent Mansion

69,40162,874

6,526

24,81911,254

3,690

116

3,791

5,967

44,58150,5485.4

5.4

A54 Lexington Square Akebonobashi

48,57644,733

3,843

19,361

5,735

2,291

58

2,611

8,664

29,21537,8795.3

5.4

A56 Casa Eremitaggio

30,59427,342

3,251

17,795

4,595

1,890

50

2,453

8,805

12,79821,6044.1

4.4

A59 Towa City Coop Shin-otsukaⅡ

33,88532,851

1,033

13,410

5,060

1,478

42

1,878

4,949

20,47425,424

5.9

5.7

A61 Bichsel Musashiseki

25,45622,8272,629

13,877

7,689

1,230

38

2,325

2,593

11,57914,1725.0

5.0

A62 Lexel Mansion Ueno Matsugaya

35,58029,037

6,543

19,141

5,613

1,733

58

3,543

8,192

16,43924,631

5.1

5.1

A63 Towa City Coop Sengencho

60,017

56,103

3,914

35,383

17,965

3,261

90

5,212

8,852

24,63433,4876.1

5.9

A64 Royal Park Omachi

22,162

18,888

3,273

12,140

4,757

1,734

56

1,258

4,333

10,021

14,3547.0

7.4

A65 Lexington Square Haginomachi

17,274

15,484

1,789

7,474

1,856

1,250

37

997

3,332

9,799

13,1328.0

8.6

A66 Visconti Kakuozan

9,916

8,747

1,169

7,268

3,563

1,013

18

905

1,767

2,648

4,415

3.5

3.8

A71 Lexington Square Daitabashi

31,196

28,662

2,533

15,508

3,598

1,428

37

2,440

8,002

15,687

23,6904.9

5.0

A72 Lexington Square Honjo-Azumabashi

18,333

16,680

1,653

9,714

2,271

872

27

1,652

4,890

8,619

13,510

5.3

5.4

A73 AMS TOWER Minami 6-Jo

41,001

38,611

2,389

31,397

7,544

1,495

116

7,972

14,267

9,603

23,8704.1

4.5

A75 Spacia Ebisu

188,123

168,444

19,67974,64913,5109,244

261

15,051

36,581

113,474

150,055

4.3

4.6

Subtotal of Residences

1,448,819

1,319,526

129,293

706,896

213,580

81,476

4,293

145,057

262,488741,922

1,004,410

4.6

5.0

B8 Kindai Kagaku Sha Building

30,57626,0094,566

21,369

6,825

4,624

201

1,393

8,323

9,206

17,530

2.7

3.6

-0.9

-1.4

RentalRevenues ①

Rents andCommonExpenses

Facilities
Management
Fees

Taxes and
Other Public
Charges

Insurance
Expenses

A26 Nisshin Palacestage Daitabashi

41,13838,074

3,064

A27 Nisshin Palacestage Higashi-Nagasaki

45,97040,934

5,036

20,382

8,483

1,552

172

2,250

7,923

25,598

9,658

2,794

264

1,932

10,948A28 Growth Maison Gotanda

27,357

26,772

585

9,354

2,575

1,420

130

876

A29 Growth Maison Kameido

32,15831,158999

13,262

3,687

1,815

152

A30 Emerald House
A31 Harmonie Ochanomizu

51,355

39,132

12,222

25,592

7,987

2,773

39,68735,693

3,993

19,877

5,511

1,944

A32 Suncrest Shakujii Koen

36,71732,301

4,416

20,9807,343

A33 Growth Maison Shin Yokohama

35,17532,406

2,768

17,5694,236

A34 Belle Face Ueno Okachimachi

34,34730,4933,854

15,561

A35 Grand Rire Kameido

26,61926,619-A36 Growth Maison Ikebukuro

24,271

23,239

1,032

A37 Growth Maison Yoga

22,691

21,884

A38 Route Tachikawa

22,081

19,559A39 Shibuya Honmachi Mansion

18,453

17,833

A40 City Heights Kinuta

15,703

A41 Acseeds Tower Kawaguchi Namiki

No.

Property Name

B9 Shinjuku Island(Note 3)(Note 3)

Property
Other Income
Related
Expenses ②(Note 3)(Note 3)(Note 3)(Note 3)

Other
Expenses(Note 3)

Depreciation
Expenses ③(Note 3)(Note 3)①－②

(Note 3)(Note 3)

B13 New Edobashi Building

117,482

108,294

9,188

62,651

19,457

15,049207

7,342

20,59454,83075,4252.1

2.5

B14 Lexington Plaza Nishigotanda

119,770

105,854

13,91585,875

26,79012,831

190

4,950

41,11333,89475,007

3.1

3.4

B15 Cross Square NAKANO

27,855

24,133

3,722

15,370

6,707

4,098

66

901

3,598

12,48416,082

3.1

3.1

B16 Ohki Aoba Building

42,266

34,6007,665

28,938

11,247

4,220

80

1,088

12,301

13,32825,6296.3

7.6

B17 Lexington Plaza Hachiman

162,248

132,633

29,61474,54939,611

12,413160

2,481

19,88387,698

107,582

6.6

7.0

B18 AEON Town Sukagawa(Note 5)

147,689

144,480

3,209

97,31857,212

9,588

202

1,090

29,22550,37079,5966.9

7.2

656,473

583,192

73,280399,826

173,660

66,002

1,213

22,107

136,842

256,647

393,489

3.6

4.2

Subtotal of Offices etc.
C1 Stop Parking Kanda-Sudacho

2,443

2,443

-

286

-

272

-

-

13

2,157

2,170

4.5

4.8

C21 Bon Sejour Chitose Funabashi

23,22021,855

1,364

5,559

225

1,887

52

-

3,393

17,66021,053

6.2

5.8

C22 Bon Sejour Yotsugi

22,42822,428

-

4,929

225

1,129

44

-

3,529

17,49921,028

6.5

6.2

C23 Bon Sejour Hino

21,40821,408

-

4,201

214

1,265

42

-

2,678

17,207

19,8867.0

6.3

C24 Bon Sejour Musashi-Shinjo

17,731

17,731

-

3,312

167

978

37

-

2,129

14,41916,5486.9

6.1

C25 Bon Sejour Komaki

45,26345,263-

13,331

201

5,138

180

-

7,810

31,93239,742

7.6

7.6

C26 Bon Sejour Hadano Shibusawa

23,69923,369

330

8,020

213

2,005

76

-

5,723

15,67821,402

6.3

7.0

C27 Bon Sejour Itami

15,887

15,887

-

5,243

145

1,410

50

-

3,638

10,643

14,281

6.0

6.7

Subtotal of Parking lots etc.

172,081

170,387

1,694

44,883

1,392

14,089485-

28,916

127,198

156,115

6.7

6.6

Total

2,277,374

2,073,106

204,268

1,151,606

388,633

161,568

5,992

167,165428,247

1,125,768

1,554,015

4.4

4.8

(Note 1) NOI Yield (%) (Acquisition Price Basis)= (( Rental Revenues - Property Related Expenses + Depreciation Expenses)/ Operation Days * 365)/ Acquisition Price(Note 2) NOI Yield (%) (Appraisal Value Basis)= (( Rental Revenues - Property Related Expenses + Depreciation Expenses)/ Operation Days * 365)/ Appraisal Value(Note 3) Figures are not written since the tenants do not give approvals to disclose them in public.
(Note 4) Accounting period: from Jan. 1, 2011 to Jun. 30, 2011.
(Note 5) Since LOC Development Co., Ltd., which is the tenant of Loc Town Sukagawa, changed its company name into AEON TOWN Co., Ltd. on September 1,2011, the property name also was changed as AEON TOWN Sukagawa.The same shall apply hereinafter.
(Note 6) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

3/5

(Appendix) Appraisal Values & Book Values of the 16th Fiscal Period

Appraisal ValueNo.

Property NameCap Rate

Book Valueas of Jun.
2011

As of
Acquisition

As of Jun.
2010 (INV)

As of Dec.
2010 (INV)

As of Jun.
2011 (INV)(ths JPY)(ths JPY)(ths JPY)(ths JPY)(ths JPY)

Compared to
Dec. 2010
(INV)

(%)

As of Dec.
2010 (INV)

As of Jun.
2011 (INV)

Changes

(%)

(%)

(%)

A26 Nisshin Palacestage Daitabashi

1,157,348

1,300,000

1,130,000

1,100,000

1,100,000

0.0

5.4

5.4

0.0

A27 Nisshin Palaistage Higashi-Nagasaki

1,128,513

1,300,000

1,130,000

1,130,000

1,130,000

0.0

5.4

5.4

0.0

A28 Growth Maison Gotanda

872,789

991,000

875,000

888,000

899,000

1.2

5.0

5.0

0.0

A29 Growth Maison Kameido

1,047,227

1,110,000

976,000

995,000

996,000

0.1

5.1

5.1

0.0

A30 Emerald House

1,469,973

1,570,000

1,210,000

1,170,000

1,160,000

-0.9

5.3

5.3

0.0

A31 Harmonie Ochanomizu

1,411,725

1,710,000

1,220,000

1,160,000

1,150,000

-0.9

5.1

5.1

0.0

A32 Suncrest Shakujii Koen

1,064,596

1,220,000

990,000

990,000

989,000

-0.1

5.2

5.2

0.0

A33 Growth Maison Shin Yokohama

1,027,582

1,110,000

1,030,000

1,050,000

1,020,000

-2.9

5.2

5.2

0.0

A34 Belle Face Ueno Okachimachi

1,015,257

1,100,000

954,000

975,000

926,000

-5.0

5.0

5.0

0.0

A35 Grand Rire Kameido

888,168

930,000

862,000

882,000

889,000

0.8

5.1

5.1

0.0

A36 Growth Maison Ikebukuro

807,098

856,000

763,000

667,000

682,000

2.2

5.1

5.1

0.0

A37 Growth Maison Yoga

785,627

831,000

717,000

656,000

596,000

-9.1

5.1

5.1

0.0

A38 Route Tachikawa

664,911

749,000

638,000

629,000

604,000

-4.0

5.4

5.4

0.0

A39 Shibuya Honmachi Mansion

660,916

678,000

591,000

590,000

588,000

-0.3

5.2

5.2

0.0

A40 City Heights Kinuta

646,780

707,000

477,000

476,000

468,000

-1.7

5.3

5.3

0.0

A41 Acseeds Tower Kawaguchi Namiki

601,822

698,000

620,000

621,000

631,000

1.6

6.0

6.0

0.0

A42 Capital Heights Kagurazaka

623,824

647,000

543,000

539,000

532,000

-1.3

5.2

5.2

0.0

A43 College Square Machida581,454597,000

518,000

514,000

514,000

0.0

5.8

5.8

0.0

A44 Belair Meguro

584,520

608,000

527,000

544,000

535,000

-1.7

4.9

4.9

0.0

A45 Wacore Tsunashima Ⅰ

566,188

665,000

512,000

506,000

506,000

0.0

5.5

5.5

0.0

A46 Foros Nakamurabashi

551,424

634,000

509,000

526,000

516,000

-1.9

5.1

5.1

0.0

A47 Growth Maison Kaijin

533,369

603,000

435,000

429,000

429,000

0.0

5.8

5.8

0.0

A48 College Square Machiya
A51 City House Tokyo Shinbashi

498,873

521,000

484,000

494,000

484,000

-2.0

5.2

5.2

0.0

2,483,731

2,790,000

2,490,000

2,480,000

2,470,000

-0.4

5.5

5.4

-0.1

A52 Winbell Kagurazaka

3,217,177

3,690,000

3,270,000

3,270,000

3,190,000

-2.4

5.1

5.2

0.1

A53 Nishiwaseda Cresent Mansion

1,867,138

2,190,000

1,880,000

1,880,000

1,880,000

0.0

5.5

5.4

-0.1

A54 Lexington Square Akebonobashi

1,425,899

1,600,000

1,450,000

1,430,000

1,410,000

-1.4

5.4

5.4

0.0

A56 Casa Eremitaggio

1,045,627

1,240,000

1,070,000

1,010,000

987,000

-2.3

5.4

5.3

-0.1

A59 Towa City Coop Shin-otsukaⅡ

853,206

937,000

867,000

871,000

901,000

3.4

5.9

5.7

-0.2

A61 Bichsel Musashiseki573,333

703,000

570,000

570,000

572,000

0.4

5.8

5.7

-0.1

948,375

1,130,000

972,000

971,000

965,000

-0.6

5.5

5.5

0.0

1,088,433

1,240,000

1,110,000

1,090,000

1,140,000

4.6

6.4

6.3

-0.1

A62 Lexel Mansion Ueno Matsugaya
A63 Towa City Coop Sengencho
A64 Royal Park Omachi

408,551

564,000

401,000

401,000

391,000

-2.5

7.6

7.6

0.0

A65 Lexington Square Haginomachi

320,733

411,000

332,000

330,000

309,000

-6.4

7.3

7.3

0.0

A66 Visconti Kakuozan

250,001

397,000

244,000

243,000

234,000

-3.7

6.1

6.1

0.0

A71 Lexington Square Daitabashi

954,760

1,019,000

975,000

960,000

950,000

-1.0

5.4

5.4

0.0

A72 Lexington Square Honjo-Azumabashi
A73 AMS TOWER Minami 6-Jo
A75 Spacia Ebisu
Subtotal of Residences
B8 Kindai Kagaku Sha Building
B9 Shinjuku Island

497,417525,000

511,000

505,000

505,000

0.0

5.5

5.5

0.0

1,140,392

1,400,000

1,130,000

1,070,000

1,070,000

0.0

6.4

6.4

0.0
0.0

6,907,878

9,140,000

6,920,000

6,740,000

6,540,000

-3.0

5.1

5.1

43,172,655

50,111,000

41,903,000

41,352,000

40,858,000

-1.2

-

-

-

1,237,630

1,340,000

1,050,000

987,000

983,000

-0.4

5.2

5.2

0.0
0.0

723,103

871,000

670,000

501,000

501,000

0.0

5.4

5.4

B13 New Edobashi Building

6,139,742

8,770,000

7,220,000

6,740,000

6,050,000 ※

-10.2

4.7

4.7

0.0

B14 Lexington Plaza Nishigotanda

4,884,759

7,160,000

4,760,000

4,690,000

4,460,000

-4.9

5.4

5.3

-0.1

B15 Cross Square NAKANO

1,051,446

1,038,000

1,060,000

1,020,000

1,040,000

2.0

5.7

5.6

-0.1

783,577

847,000

725,000

726,000

676,000

-6.9

6.5

6.5

0.0

3,269,863

4,760,000

3,180,000

3,170,000

3,120,000

-1.6

6.7

6.8

0.1
0.3

B16 Ohki Aoba Building
B17 Lexington Plaza Hachiman
B18 AEON Town Sukagawa

2,265,456

2,563,000

2,320,000

2,320,000

2,220,000

-4.3

7.0

7.3

Subtotal of Offices

20,355,579

27,349,000

20,985,000

20,154,000

19,050,000

-5.5

-

-

-

C1 Stop Parking Kanda-Sudacho

100,905

100,000

90,60090,60091,200

0.7

4.7

5.1

0.4

C21 Bon Sejour Chitose Funabashi

676,331

791,000

720,000

735,000

735,000

0.0

5.9

5.9

0.0

C22 Bon Sejour Yotsugi

642,265

765,000

681,000

681,000

681,000

0.0

6.2

6.2

0.0

C23 Bon Sejour Hino

566,609

699,000

641,000

641,000

641,000

0.0

6.2

6.2

0.0

C24 Bon Sejour Musashi-Shinjo

480,111610,000

543,000

543,000

543,000

0.0

6.1

6.1

0.0

1,027,874

1,940,000

1,060,000

1,060,000

1,060,000

0.0

7.6

7.6

0.0

C26 Bon Sejour Hadano Shibusawa

664,785

962,000

616,000

616,000

616,000

0.0

7.0

7.0

0.0

C27 Bon Sejour Itami

469,952

748,000

430,000

433,000

433,000

0.0

6.8

6.7

-0.1

C25 Bon Sejour Komaki

Subtotal of Parking lots etc.

4,628,835

6,615,000

4,781,600

4,799,600

4,800,200

0.0

-

-

-

Total

68,157,070

84,075,000

67,669,600

66,305,600

64,708,200

-2.4

-

-

-

(note) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
* Properties whose appraisal values are different more than 10 % compared to the previous fiscal period and the reasons of the differences.
B13 New Edobashi Building: Since price per unit of area (Tsubo-tanka) decreased by 11.2 %, its rental revenues also decreased compared with the time of the previous appraisal.

4/5

(Appendix) Portfolio List

(As of Jun. 30, 2011)
No.

Acquisition
Price(JPY mn)

Location

Property Name

Appraisal
Value(JPY mn)

Acquisition
Date

Completion
Date

PropertyAge (years)

Total Rentable Total Leasable
units
Area (㎡)Occupancy
Rate (%)

23 wards

Suginami, Tokyo

1,251

1,100

Jul. 2005

Dec. 1992

18

98

1,771.13

A27 Nisshin Palacestage Higashi-Nagasaki 23 wards

Toshima, Tokyo

1,229

1,130

Jul. 2005

Mar. 1989

22

60

2,681.94

94.4

A28 Growth Maison Gotanda

23 wards

Shinagawa, Tokyo

888

899

Jan. 2006

Jul. 2005

548

1,051.50

100.0

A29 Growth Maison Kameido

23 wards

Koto, Tokyo

1,070

996

Mar. 2006

Oct. 2005

566

1,367.96

92.5

A30 Emerald House

23 wards

Itabashi, Tokyo

1,505

1,160

Aug. 2006

Feb. 1995

16

96

2,152.31

100.0

A31 Harmonie Ochanomizu

23 wards

Bunkyo, Tokyo

1,428

1,150

Aug. 2006

Mar. 1997

14

65

1,748.24

93.6

A32 Suncrest Shakujii Koen

23 wards

Nerima, Tokyo

1,088

989

Aug. 2006

Mar. 1990

21

29

3,029.16

95.0

A33 Growth Maison Shin Yokohama

Surrounding

Yokohama, Kanagawa

1,059

1,020

Aug. 2006

Mar. 2006

5

68

1,858.44

100.0

A34 Belle Face Ueno Okachimachi

23 wards

Taito, Tokyo

1,023

926

Aug. 2006

Feb. 2006

564

1,351.11

100.0

A35 Grand Rire Kameido

23 wards

Koto, Tokyo

906

889

Aug. 2006

Mar. 2006

5

72

1,562.26

100.0

A36 Growth Maison Ikebukuro

23 wards

Toshima, Tokyo

825

682

Aug. 2006

Jan. 2006

542952.89100.0

A37 Growth Maison Yoga

23 wards

Setagaya, Tokyo

795

596

Aug. 2006

Mar. 2006

539

1,015.34

100.0

A38 Route Tachikawa

Surrounding

Tachikawa, Tokyo

676

604

Aug. 2006

Mar. 1997

14

24

1,368.57

96.6

A39 Shibuya Honmachi Mansion

23 wards

Shibuya, Tokyo

651

588

Aug. 2006

Dec. 1986

24

25

1,167.50

83.4

A40 City Heights Kinuta

23 wards

Setagaya, Tokyo

646

468

Aug. 2006

Mar. 1983

28

19

1,235.93

83.8

A41 Acseeds Tower Kawaguchi Namiki

Surrounding

Kawaguchi, Saitama

620

631

Aug. 2006

Feb. 2006

557

1,210.74

100.0

A26 Nisshin Palacestage Daitabashi

89.8

A42 Capital Heights Kagurazaka

23 wards

Shinjuku, Tokyo

604

532

Aug. 2006

May. 1987

24

26

1,126.65

95.2

A43 College Square Machida

Surrounding

Machida, Tokyo

589

514

Aug. 2006

Mar. 1984

27

62

1,047.75

100.0

A44 Belair Meguro

23 wards

Meguro, Tokyo

589

535

Aug. 2006

Oct. 2005

525

557.05

91.9

A45 Wacore Tsunashima Ⅰ

Surrounding

Yokohama, Kanagawa

572

506

Aug. 2006

Feb. 1991

2050

908.9991.9

A46 Foros Nakamurabashi

23 wards

Nerima, Tokyo

566

516

Aug. 2006

Sep. 2001

937

815.76

94.2

A47 Growth Maison Kaijin

Surrounding

Funabashi, Chiba

557

429

Aug. 2006

Oct. 1993

17

34

2,040.27

95.1

A48 College Square Machiya

23 wards

Arakawa, Tokyo

510

484

Aug. 2006

Mar. 2006

543871.35100.0

A51 City House Tokyo Shinbashi

23 wards

Minato, Tokyo

2,520

2,470

Feb. 2010

Aug. 2004

6

86

3,364.00

88.1

A52 Winbell Kagurazaka

23 wards

Shinjuku, Tokyo

3,260

3,190

Feb. 2010

Feb. 2004

7

118

4,032.70

95.3

A53 Nishiwaseda Cresent Mansion

23 wards

Shinjuku, Tokyo

1,880

1,880

Feb. 2010

Jul. 1987

23

69

4,310.77

94.3

A54 Lexington Square Akebonobashi

23 wards

Shinjuku, Tokyo

1,450

1,410

Feb. 2010

Dec. 2004

6

88

1,987.88

86.4

A56 Casa Eremitaggio

23 wards

Meguro, Tokyo

1,070

987

Feb. 2010

Dec. 2003

7

17

1,197.19

87.1

A59 Towa City Coop Shin-otsukaⅡ

23 wards

Toshima, Tokyo

866

901

Feb. 2010

May. 1993

18

58

1,627.13

92.2
84.3

A61 Bichsel Musashiseki

23 wards

Nerima, Tokyo

577

572

Feb. 2010

Feb. 1992

19

70

1,220.24

A62 Lexel Mansion Ueno Matsugaya

23 wards

Taito, Tokyo

970

965

Feb. 2010

Jan. 2005

629

1,969.45

96.8

A63 Towa City Coop Sengencho

Surrounding

Yokohama, Kanagawa

1,110

1,140

Feb. 2010

Oct. 1992

18

154

3,426.36

95.7

A64 Royal Park Omachi

TohokuSendai, Miyagi

415

391

Feb. 2010

Feb. 1993

18

51

1,929.59

83.7

A65 Lexington Square Haginomachi

TohokuSendai, Miyagi

330

309

Feb. 2010

Aug. 2005

539

1,528.58

97.4

A66 Visconti Kakuozan

Chubu

Nagoya, Aichi

255

234

Feb. 2010

Sep. 2003

7

8

705.7572.5

A71 Lexington Square Daitabashi

23 wards

Suginami, Tokyo

977

950

Feb. 2010

Nov. 2006

443

1,430.64

90.9

A72 Lexington Square Honjo-Azumabashi 23 wards

Sumida, Tokyo

511

505

Feb. 2010

Oct. 2006

4

33

784.74

97.0

A73 AMS TOWER Minami 6-Jo

Hokkaido

Sapporo, Hokkaido

1,180

1,070

Feb. 2010

Feb. 2007

4120

4,460.56

84.3

A75 Spacia Ebisu

23 wards

Shibuya, Tokyo

7,010

6,540

Feb. 2010

Feb. 2003

8

109

7,794.91

88.7

44,04040,858

-

11.0

2,241

74,663.33

92.6

1,301

983

Aug. 2006

20

13

1,451.54

75.2

Subtotal of Residences-

B8 Kindai Kagaku Sha Building

23 wards

Shinjuku, Tokyo

Jun. 1991

B9 Shinjuku Island

23 wards

Shinjuku, Tokyo

715

501

Mar. 2007

Jan. 1995

161

526.43100.0

B13 New Edobashi Building

23 wards

Chuo, Tokyo

7,410

6,050

Feb. 2010

Nov. 1986

24

95,695.70

51.2

B14 Lexington Plaza Nishigotanda

23 wards

Shinagawa, Tokyo

4,880

4,460

Feb. 2010

Jun. 1993

18

11

6,033.58

62.4

B15 Cross Square NAKANO

23 wards

Nakano, Tokyo

1,060

1,040

Feb. 2010

Jan. 1993

18

45

2,145.00

49.2

B16 Ohki Aoba Building

TohokuSendai, Miyagi

816

676

Feb. 2010

Jul. 1997

13

13

2,178.41

100.0

B17 Lexington Plaza Hachiman

TohokuSendai, Miyagi

3,280

3,120

Feb. 2010

Dec. 2005

518

8,419.15

94.6

B18 AEON Town Sukagawa

TohokuSukagawa, Fukushima

2,320

2,220

Feb. 2010

Oct. 2005

5

1

18,440.58

100.0

-

16.6

111

44,890.39

84.5

1

81.04

100.0

21,782

19,050C1 Stop Parking Kanda-Sudacho

23 wards

Chiyoda, Tokyo

97

91

Jan. 2007

C21 Bon Sejour Chitose Funabashi

23 wards

Setagaya, Tokyo

685

735

Feb. 2010

Mar. 1988

2342

2,342.17

100.0

C22 Bon Sejour Yotsugi

23 wards

Katsushika, Tokyo

652

681

Feb. 2010

Mar. 1989

22

62

1,962.87

100.0

C23 Bon Sejour Hino

Surrounding

Hino, Tokyo

574

641

Feb. 2010

May. 1990

21

56

1,984.17

100.0

C24 Bon Sejour Musashi-Shinjo

Surrounding

Kawasaki, Kanagawa

486

543

Feb. 2010

Feb. 1985

26

46

1,710.43

100.0

C25 Bon Sejour Komaki

Chubu

Komaki, Aichi

1,050

1,060

Feb. 2010

Mar. 1991

20

123

8,858.49

100.0

C26 Bon Sejour Hadano Shibusawa

Surrounding

Hadano, Kanagawa

681

616

Feb. 2010

Jul. 1991

19100

3,435.79

100.0

C27 Bon Sejour Itami

Kansai

Itami, Hyogo

480

433

Feb. 2010

Mar. 1989

22

62

2,129.87

100.0

Subtotal of Parking lots etc.

-

-

4,705

4,800

-

-

21.5

492

22,504.83

100.0

Total

-

-

70,52864,708

-

-

13.4

2,844

142,058.55

91.2

Subtotal of Offices etc.

-

-

-

-

(Note 1) "Tokyo (except for "Tokyo 23 wards")" and "Kanagawa, Chiba, and Saitama prefectures" are defined as "Surrounding".
(Note 2) Property ages in the "Subtotal" and "Total" fields are weighted average figures.
(Note 3) Since "C1 Stop Parking Kanda-Sudacho" is a flat parking lot, there are no buildings on the ground so there are no "Completion Date" and "Property Age".
(Note 4) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

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