Investment
Invincible Corporation

Financial Summary
for the 21st Fiscal Period(from July 1, 2013 to December 31, 2013)

Name
Representative
Stock Listing
Securities CodeURL
Contact

:
:
:
:
:
:

Invincible Investment Corporation
Naoki Fukuda, Executive Director
Tokyo Stock Exchange8963
http://www.invincible‐inv.co.jp/eng/
Consonant Investment Management Co., Ltd.
(Asset Manager of Invincible Investment Corporation)
Akiko Watanabe, Manager, Planning Department
Tel. +81‐3‐5411‐2731

Start date fordividend distribution: March 27, 2014

Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period

1.

Performance for the 21st Fiscal Period Ended December 31, 2013
(from July 1, 2013 to December 31, 2013)
1) Business Results(Percentages in brackets represent change from previous fiscal period)

Operating Revenues
mn JPY

Operating Income%

mn JPY

Ordinary Income%

mn JPYNet Income%

mn JPY

2,740(‐0.7)

1,265

(2.8)

353

20th Fiscal Period

2,760(11.5)

1,231(13.6)

335 (192.4)

335 (193.5)

Ordinary Income /Total Assets

Ordinary Income /Operating Revenues

Net Income
per Unit

Net Income /
NAV*
JPY

(5.3)

%

21st Fiscal Period

%

352

(5.3)

%

%

21st Fiscal Period

259

1.0

0.4

12.9

20th Fiscal Period

249

1.0

0.4

12.2

*NAV = Total net assets(Note) “Net Income per Unit” is calculated based on the average number of investment units and is rounded tonearest yen.

2) Cash Distributions
Distribution
per Unit

Distribution
Amount(Excluding excess
profit distribution
per unit)
JPY

ExcessProfitDistribution
per Unit

mn JPYJPY

ExcessProfitDistribution
AmountDividend
Payout Ratio

mn JPYDistribution /
NAV

%

%

21st Fiscal Period

237

372

0

0

105.7

1.0

20th Fiscal Period

264

355

0

0

106.0

1.1

(Note 1) Invincible Investment Corporation (INV) reversed JPY 20 million out of surplus and distributed JPY 264
per unit for the distribution for the 20th fiscal period ended June 30, 2013. As for the distribution for the
21st fiscal period ended December 31, 2013, INV reversed JPY 20 million out of surplus and decided to
distribute JPY 237 per unit.
(Note 2) Dividend payout ratio is calculated by dividing “Distribution Amount” by “Net Income” as for 21st fiscal
period.

3) Financial Position
Total Assets

NAV

NAV /Total Assets

mn JPY

mn JPYNAV per Unit%

JPY

21st Fiscal Period

79,17635,84445.3

22,78520th Fiscal Period

80,24932,84840.9

24,363(Note) “NAV per Unit” is calculated based on the number of investment units issued and outstanding at the end ofeach period, and is rounded to nearest yen.

4) Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investment Activities

mn JPY

mn JPY

Cash Flows from
Financing Activities
mn JPY

Closing Balance of Cashand Cash Equivalents
mn JPY

21st Fiscal Period

1,771

‐169

‐1,532

4,187

20th Fiscal Period

1,054

‐167

‐300

4,117

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Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period2.

Forecast for the 22nd Fiscal Period Ending June 30, 2014
(from January 1, 2014 to June 30, 2014)(Percentages in brackets represent change from previous fiscal period)
Distribution
Excess Profit
Operating
Ordinary
per Unit
Net Income (Excluding excess Distribution
IncomeIncomeprofit distribution
per Unit

Operating
Revenues

per unit)

22nd Fiscal Period

mn JPY%

mn JPY

%

2,760

(0.7)

1,191

(‐5.9)

Reversal of
Surplus22nd Fiscal Period(Reference)mn JPY%

mn JPY731 (107.1)

%

JPY

JPY

731 (107.3)

464

0Distribution
Amountmn JPY%

mn JPY

%

‐

(‐)

729

(95.8)

Estimated net income per unit for the 22nd fiscal period: JPY 465

Based on the forecast of financial results as of today, INV plans to distribute JPY 729 million in
total from net income (the distribution per unit : JPY 464) for the 22nd fiscal period. Furthermore,total distribution amount exceeds 90% of the amount of distributable income, and the
distribution (JPY 729 million) is calculated on the assumption that INV will not utilize the thesurplus gained from negative goodwill resulting from the merger on February, 2010 (the“Surplus”). Therefore, the balance of the Surplus after the 21st fiscal period distribution will be
JPY 73 million, and the balance is expected to remain unchanged after the 22nd period
distribution.
(Note 1)

One of the tax conduit requirements is the dividend payment requirement, in which investment
corporations are required to distribute at least 90 % of their distributable income (Note 2).
(Note 2) Amount of distributable income for the next fiscal period (JPY 790 million (*)) × 90% = JPY 711 million
Total distribution amount for the next fiscal period is JPY 729 million, which exceeds the amount of JPY
711 million, calculated as above.
(*) Distributable income for the next fiscal period (JPY 790 million) = Net income before income tax for the next fiscal period (JPY
731 million) + Amortization of negative goodwill for each fiscal period (JPY 59 million)(**)(**) Amortization of negative goodwill for each fiscal period (JPY 59 million) = Gain on negative goodwill accrued upon the merger(JPY 11,843 million) × (Number of months of fiscal period ÷ 1,200 months (***))(***)1,200 months = 100 years × 12 months (1 year)

For the pre‐conditions and assumptions underlying the forecast results and business outlook forthe 22nd fiscal period, please see “Pre‐Conditions and Assumptions Underlying Forecasted
Performance for the 22nd Fiscal Period (from January 1, 2014 to June 30, 2014)”.
(Disclaimer of Forward‐Looking Statements)
Forward‐looking statements, such as the forecast described herein, are based on the informationthat we currently have and certain assumptions that we consider reasonable. The results may
significantly vary due to changes in the business, such as the occurrence of sales gains and losses
in association with the disposals of properties, repayment of borrowings, and a decrease of rent
received, that are not forecasted as of today. Also, this forecast is not a guarantee of the
distribution amount.

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Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period<Pre‐Conditions and Assumptions Underlying Forecasted Performance for the 22nd Fiscal Period(from January 1, 2014 to June 30, 2014)>
Item

Assumptions

Fiscal period

From January 1, 2014 to June 30, 2014

Assets under anagement

INV assumes the number of properties is 78 properties based on the number ofproperties held by INV as of today.
In addition, INV assumes there will be no new acquisitions or disposals of existing
properties thereafter through to the end of the 22nd fiscal period.

Units outstanding

INV assumes the number of units issued and outstanding is 1,573,179 units, which isbased on the number of units issued by INV as of today. Also, INV assumes there will
be no additional issue of investment units thereafter through to the end of the 22nd
fiscal period.

Interest‐bearing liabilities

Balance as of the end of the 22nd fiscal period: JPY 41,208 million
The repayments of JPY 101 million are scheduled to be made by scheduled
repayments during this fiscal period and INV assumes there will be no additional
repayments of the borrowings other than the scheduled repayments and no new
financing.
INV assumes it will earn operating revenues of JPY 2,760 million for the 22nd fiscal
period.

Operating revenues

The breakdown is as follows:・Rental revenues

JPY 2,760 million

Rental revenues are calculated based on historical data and taking into account tenant
trends, property competitiveness, market environment and other factors. In addition,
INV assumes there are no delinquencies or non‐payment of rent by tenants.
INV assumes it will incur property related expenses of JPY 1,330 million for the 22nd
fiscal period.
The breakdown is as follows:・Facility management fees
Operating expenses

・Taxes and other public charges
・Insurance expenses
・Other expenses
・Depreciation expenses

JPY 464 million(of these, JPY 40 million
are repair costs)
JPY 170 million
JPY 5 million
JPY 151 million
JPY 537 million

Other than the property related expenses, INV assumes it will incur operating
expenses of JPY 239 million for the 22nd fiscal period.
INV assumes it will incur non‐operating expenses of JPY 459 million for the 22nd
fiscal period. The breakdown is as follows:
Non‐operating expenses

Distribution per unit

Excess profit
distribution per unit

・Interest expenses
・Finance related costs
・Other non‐operating expenses

JPY 396 million
JPY 62 million
JPY 1 million

The distribution per unit is calculated in accordance with the cash distribution policy
set forth in INV’s Articles of Incorporation.
INV assumes it will pay the distribution using net income as a source, and plans to
distribute JPY 729 million (JPY 464 per unit).
INV currently does not expect to make distributions in excess of profits (excess profit
distribution per unit).

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Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period

Item

Other

Assumptions
INV assumes there will be no amendments to laws and ordinances, the taxation
system, accounting standards and other regulations that will affect the foregoing
forecasts.
In addition, INV assumes there will be no unforeseen material changes in the market
environment, including general economic trends and real estate market conditions.

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Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period

3. Financial Statements
1) Balance Sheet of INV as of December 31, 2013
(Consistent with Japanese GAAP)

Items
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Accounts receivables
Advances paid
Deposits paid
Prepaid expenses
Consumption tax receivable
OthersAllowance 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
Long‐term prepaid expenses
OthersTotal investment and other assets
Total non‐current assets
Total assets

Items
Liabilities
Current liabilities
Accounts payable
Current portion of long‐term debts
Current portion of long‐term debts in trust
Accrued liabilities
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non‐current liabilities
Long‐term debts
Long‐term debts in trust
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Long‐term accrued expenses
Total non‐current liabilities
Total liabilities
Net assets
Unitholdersʹ equity
Unitholdersʹ capital
SurplusCapital surplus
Unappropriated retained earnings / loss
Total surplus
Total unitholdersʹ equity
Total net assets
Total liabilities and net assets

20th Fiscal Period

21st Fiscal Period( As of Jun. 30, 2013)
Ths JPY%( As of Dec. 31, 2013)
Ths JPY%

1,427,483
2,690,331
17,407
139748,197
211,587‐‐‐1,528
5,093,620

ChangesThs JPY%

6.3

1,457,257
2,729,902
10,9480‐122,3217,419
10‐2,573
4,325,286

2,489,402
23,902
2,451
2,713,620
27,617,278
5,220,784
226,389
77,84236,582,527
74,954,199

93.4

2,461,796
22,7062,330
2,713,620
27,423,061
5,073,126
223,646
80,64636,582,527
74,583,461

94.2‐27,605‐1,196‐120‐‐194,217‐147,658‐2,7432,804‐‐370,738

167
167

0.0

137
137

0.0

‐30
‐30

‐18.0

0.3
93.7
100.0

10,000224,371
33,375
267,746
74,851,345
79,176,632

0.3
94.5
100.0

‐
65,976694
66,671‐304,097‐1,072,430

33.2
‐0.4
‐1.3

10,000158,394
32,680201,075
75,155,443
80,249,063

5.5

29,77339,571‐6,458‐139‐748,197‐89,266
7,419
10‐1,045‐768,333

‐15.1

‐0.5

20th Fiscal Period

21st Fiscal Period( As of Jun. 30, 2013)
Ths JPY%( As of Dec. 31, 2013)
Ths JPY%

151,861
262,000‐
4,375
354,066527
24,902
377,475
8,601
1,183,809
22,629,500
20,960,000
1,048,635
183,579
1,395,513
46,217,228
47,401,038

1.5

174,201
203,520
105,833
5,000
229,843525‐
385,886
5,048
1,109,859

57.6
59.1

20,146,480
20,854,166
1,037,721
183,579‐
42,221,948
43,331,808

ChangesThs JPY

1.4

22,340‐58,480
105,833
625‐124,223‐1‐24,902
8,411‐3,553‐73,950

‐6.2

53.3
54.7

‐2,483,020‐105,833‐10,913‐‐1,395,513‐3,995,279‐4,069,230

‐8.6
‐8.6

26,134,396

29,134,389

2,999,992

6,264,432
449,196
6,713,628
32,848,025
32,848,025
80,249,063

6,264,432
446,0036,710,435
35,844,824
35,844,824
79,176,632‐‐3,193‐3,193
2,996,799
2,996,799‐1,072,430

6/9

8.4
40.9
40.9
100.0

%

8.5
45.3
45.3
100.0

0.0
9.1
9.1
‐1.3

Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period

2) Statement of Income for the 6 months Ended December 31, 2013
(Consistent with Japanese GAAP)
Items

Operating revenues
Rental revenues (1)Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI(1)‐(2)+(3)Asset management fees
Directorsʹ remuneration
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Bad debt loss
Other operating expenses
Operating income
Non‐operating revenues
Interest revenues
Profit from finance related cost adjustment
Miscellaneous income
Non‐operating expenses
Interest expenses
Finance related costs
Investment unit issuance expenses
Miscellaneous losses
Ordinary income
Income before income taxes
Corporate tax, etc.
Net income
Retained earnings at the beginning of the period
Unappropriated retained earnings / loss at the end of the period

20th Fiscal Period
2013/1/1‐
2013/06/30
Ths JPY%
2,760,177
100.0
2,760,177
1,528,940
55.4
1,295,403
543,640
2,008,413
125,000
4,800
3,911
21,531
730‐
77,562
1,231,237
44.6
3,472
0.1
383
‐
3,088
899,02632.6
800,615
96,816‐
1,593
335,683
12.2
335,68312.2
605
335,078
12.1
114,118
449,196

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21st Fiscal Period
2013/7/1‐
2013/12/31
Ths JPY%
2,740,449
100.0
2,740,449
1,474,679
53.8
1,261,221
527,420
2,006,648
125,000
4,800
3,986
19,0891,045
2,561
56,9751,265,770
46.2
355,54413.0
400
354,737406
1,267,953
46.3
672,128
579,038
15,4871,300
353,360
12.9
353,36012.9
605
352,755
12.9
93,247446,003

ChangesThs JPY‐19,727‐19,727‐54,260‐34,182‐16,219‐1,765‐‐74‐2,442314
2,561‐20,586
34,532352,07116
354,737‐2,681
368,927‐128,487
482,221
15,487‐293
17,677
17,677‐
17,677‐20,870‐3,193

%
‐0.7
‐3.5

2.8
AI

41.0

5.3
5.3
5.3

Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period

3) Statement of Cash Flows for the 6 months Ended December 31, 2013
(Consistent with Japanese GAAP)
20th Fiscal Period
2013/1/1‐
2013/6/30
Ths JPY

Items
Cash flows from operating activities
Net income before taxes
Depreciation expenses
Investment unit issuance expenses
Finance related costs
Amortization of tenant leasehold and security deposits in trust
Interest received
Profit from finance related cost adjustment
Interest paid
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable
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
OthersSubtotal
Proceeds of interest
Payment of interest
Payment of corporate taxes, etc.
Cash flows from operating activities
Cash flows from investment activities
Payment for acquisition of tangible assets in trust
Payment of tenant leasehold and security deposits in trust
Proceeds of tenant leasehold and security deposits in trust
OthersCash flows from investment activities
Cash flows from financing activities
Proceeds from long‐term debt
Repayment of long‐term debt
Finance related costs
Payment of distributions
Proceeds from issuance of investment units
OthersCash flows from financing activities
Increase (decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Closing balance of cash and cash equivalents

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335,683
543,717

21st Fiscal Period
2013/7/1‐
2013/12/31
Ths JPY‐
96,816
(433)
(383)
‐
800,615730
962(57,701)
115,447
24,902
17,493(13,571)
9,112(1,294)
3,333(2,456)
1,872,971
383(818,164)(581)
1,054,609

353,360
527,451
15,487579,038(683)(400)(354,737)
672,1281,045
6,458
748,197(7,419)(24,902)
24,617‐(127,432)
8,411(3,553)
5,481
2,422,548
390(650,982)(606)
1,771,350(154,421)(93,409)
83,162(3,298)(167,967)(158,960)(49,761)
39,531(694)(169,885)‐(131,000)(10,636)(157,800)‐(1,300)(300,737)
585,905
3,531,910
4,117,815

20,350,000(22,891,500)(1,618,501)(355,323)
2,999,992(16,787)(1,532,119)
69,344
4,117,815
4,187,160

Invincible Investment Corporation (8963)
Financial Summary for the 21st Fiscal Period

For further information:
Please contact
Planning Department at Consonant Investment Management, Co. Ltd.
Tel. +81‐3‐5411‐2731
Disclaimer
This document contains translations of selected information provided in the Japanese language Summary
Financial Report (Kessan‐Tanshin) for the 21st Fiscal Period Ended December 31, 2013 (from July 1, 2013 to
December 31, 2013) of Invincible Investment Corporation (INV) dated February 26, 2014 and prepared under
the timely disclosure requirements of the Tokyo Stock Exchange.
This document is for informational purposes only and not for solicitation to invest in, or recommendation tobuy, certain products of INV. You should consult with securities firms if you intend to purchase investment
units of INV.
This English language document is provided solely for the convenience of and reference by non‐Japanese
investors and neither corresponds to the original Japanese documents nor is intended to constitute or form apart of any disclosure document required by the Financial Instruments and Exchange Act of Japan orregulations thereunder, the Investment Trust and Investment Corporation Act of Japan or regulations
thereunder, or the listing rules of the Financial Instruments Exchanges or other related rules and regulations.
The Japanese language Summary Financial Report should always be referred to as the original of thisdocument.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely
identical to the concepts of the equivalent Japanese terms. With respect to any and all terms herein,
including without limitation, financial statements, if there exist any discrepancies in the meaning orinterpretation thereof between the original Japanese documents and English statements contained herein, theoriginal Japanese documents shall always prevail.
None of INV, Consonant Investment Management Co., Ltd. (Asset Manager) or any of their respective
directors, officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for thecompleteness appropriateness or accuracy of English translations or the selection of the portions of any
documents translated into English. No person has been authorized to give any information or make any
representations other than as contained in this document in relation to the matters set out in this document,
and if given or made, such information or representation must not be relied upon as having been authorized
by INV, Asset Manager or any of their respective directors, officers, employees, partners, shareholders,
agents or affiliates.
The financial statements are a translation of the audited financial statements of INV, that were prepared inaccordance with generally accepted accounting principles in Japan (Japanese GAAP) which may materiallydiffer in certain respects from generally accepted accounting principles and practices in other jurisdictions.
In preparing the financial statements, certain reclassifications and modifications have been made to thefinancial statements issued domestically in order to present them in a format that is more familiar to readers
outside Japan.
Many provisions of this document contain forward‐looking statements and information. We base thesestatements on our beliefs as well as our assumptions in consideration of currently available information;
therefore, there may be currently known and unknown risks and uncertainties in such statements. The
contents of forward‐looking statements are subject to such risks, uncertainties, assumptions and other factors.
These forward‐looking statements are not a guarantee of future performance, and there are certain importantfactors that could cause actual results to differ, possibly materially, from expectations or estimates reflected insuch forward‐looking statements, including without limitation: the general economy, market conditions,financial markets including the performance of the real market, interest rate fluctuations, competition with
our properties, and the impact of changing regulations or taxation.
INV does not intend, and is under no obligation, to update any particular information included in thisdocument. The forward‐looking statements contained in this document speak only as of the date of release,
February 26, 2014, and INV does not undertake to revise those forward‐looking statements to reflect eventsoccurring after the date of this release.

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