15th Fiscal Period Results(from Jan. 1, 2010 to Dec. 31, 2010)

Invincible Investment Corporation

http://www.invincible-inv.co.jp/eng/(Feb. 25, 2011)1

Table of Contents
Section 1:
Highlights of Performancefor the 15th Fiscal Period((P.3))- Financial Highlights- Historical Operating Results- Financial Metrics- Forecast for the 16th Fiscal Period- Changes in B/S by the Merger

Section 2:
Financial Statements
for the15th Fiscal Period- Portfolio History- Portfolio MAP- Portfolio Diversification- Portfolio List
- Properties Sold after the Merger- Overview of Borrowings- Overview of Unitholders- Overview of Historical Unit Price(P.26)- Overview of Occupancy Rates- Pursuit of Stability & Growth- Properties for Seniors(P.11)

Section 5:
Material Issues and Activities(P.30)- Material Issues and Recent Activities- Negative Goodwill- Income Statement- Balance Sheet- Cash Flow Statement / Financial Statements
pertaining to Distribution of Monies

Section 3:
Measures Taken after the Merger /Portfolio

Section 4:
Measures Taken for Internal Growth(P.16)

Section 6:
Overview of INV(P.33)- Profile of INV- Basic Policy of INV- Profile of Asset Manager- Reorganization of Asset Manager■Disclaimer(Appendix)- Performance by Properties in the15th Fiscal Period- Appraisal Values & Book Value of the 15th Fiscal Period- Portfolio List

2

Section 1 Highlights
g gof Performancefor the 15th Fiscal Period

3Financial Highlights (1)MergerSales of
Properties

Merge with LCP Investment Corporation (LCP) effective on Feb. 1, 2010 andchanged its name from TGR Investment Inc. (TGR) to Invincible Investment
Corporation (INV).

Effective date of the Merger

L T V

Dec. 31, 2009

(Based on total assets
at the end of fiscal period)

54.0 %(Note 4)(Note 5)

Dec. 31, 2010
55 propertiesti

104 properties
ti

Effective date of the Merger(Note 1)
(Note 2)
(Note 3)(Note 1)(Feb. 1, 2010)

Repayments ofBorrowings

Occupancy
Rate

Sold 49 properties

Repaid JPY 32,319 mnof the borrowings by salesof properties, etc. (Note 2)(Feb. 1, 2010)

Dec. 31, 2010
JPY 42,965 million

JPY 75,285 million+2.6%

Dec. 31, 2010

(Note 3)January 31, 2010
(Note 4)93.7 %

56.6 %
Average occupancy rateduring the period
92.9%

Dec. 31, 2010
91.1 %For more details of sales of properties, please see P.21.
For more details of repayments of borrowings,please see P.22.
The LTV as of December 31, 2009 is that of former TGR (before the Merger). Please note that the above “LTV (based on total assets at the end of fiscal period)” is different from “Investment
Corporation LTV” of “Material Issues and Recent Activities” on P.31.
The Occupancy Rate as of January 31,2010 is that of former TGR (before the Merger).
Figures are rounded down to the indicated unit, percentages are rounded to one decimal place.

4

Financial Highlights (2)15th Fiscal Period Results against Forecasts and Historical Results
14th Fiscal Period 15th Fiscal Period 15th Fiscal Period(Results) (1)(Initial Forecast)(2) (Results) (3)(2009/7/1(2009/7/12009/12/31)
Days of
Operation(2010/1/1(2010/1/12010/12/31)(2010/1/1(2010/1/12010/12/31)

Compared to the Initial 16th Fiscal Period
Forecast (3)-(2)(Forecast)Compared to 14th Fiscal
Period (3)-(1)Changes(%)

Changes(2011/1/1(2011/1/12011/6/30)

(%)

184

365

365

181

-

-

-

181

OperatingpgRevenues (thsJPY)

1,531,044

5,496,000

5,348,724

3,817,680

249.4- 147,276- 2.7

2,343,000

Operating
Income (ths JPY)

565,743- 8,219,000- 5,241,835- 5,807,579

AD

2,977,165- 36.2867,000

OrdinaryOdi
IncomeI(ths JPY)

267,057- 10,061,000- 7,078,530- 7,345,587

AD

2,982,470- 29.64,000

Gain on Negative
Goodwill (thsJPY)－

14,745,000

11,843,160

11,843,160－- 2,901,840- 19.7－Net Income (thsJPY)

265,633

4,679,000

4,757,778

4,492,145

1,691.1

78,7781.7

3,000

Reversal of
Earned Surplus(ths JPY)

－

－

－

－

－

－

－

123,000

Distribution per
Unit (JPY)

4,928

300

435

- 4,493- 91.2

135

45.0

200

IssuedInvestment Unit

53,899636,695

636,695

582,796－－－

636,695(Note 1)
(Note 2)
(Note 3)

The first fiscal period (15th fiscal period) including the effective date of the Merger is from January 1, 2010 to December 31, 2010.
In conjunction with the Merger, INV split one investment unit into five units effective on February 1, 2010.
Figures are rounded down to the indicated unit and percentages are rounded to one decimal place. Furthermore, figures of 15th Fiscal Period (Initial Forecast) and 16th Fiscal Period (Forecast)are rounded down to the million JPY.

5

Historical Operating Results
NOI per Unit: JPY 6,200
Compared to 14th Fiscal Period:
Decrease of JPY 13,538(68.6 % down)
24,247

21,812

20,729FFO per Unit: JPY 1,950
Compared to 14th Fiscal Period:
Decrease of JPY 8,262 (80.9 % down)
In conjunction with
the Merger,(Note 1)
INV split one
investment unit
into five investment units

19,73815,39013,20012,429In conjunction with
the Merger,(Note 1)
INV split one
investment unit
into five investment units

10,2126,200 (Note 2)（注1）(Note 2,3)
1,950（注1）

11th
第11期

12th
第12期

13th
第13期

14th
第14期

15th
第15期

Operating revenues:
JPY 5,348,724 ths
Compared to 14th Fiscal Period:
Increase of JPY 3,817,680 ths(249 4 % up)(249.4

11th
第11期

12th
第12期

13th
第13期

14th
第14期

15th
第15期

Net income: JPY 4,757,778 ths
Compared to 14th Fiscal Period:
Increase of JPY 4,492,145 ths(1,691.1 % up)

5,348,724

Figure excluding the effectof “loss from sales ofproperties” & “gain on
negative goodwill”
is JPY 276,973 ths

4,757,778

1,787,281 1,967,896 1,614,835 1,531,044

11th
第11期
(Note 1)
(Note 2)
(Note 3)(Note 4)

12th
第12期

13th
第13期

14th
第14期

15th
第15期

528,226735,226

11th
第11期

12th
第12期

356,806

265,633

13th
第13期

14th
第14期

15th
第15期

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.
Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

6

Financial Metrics
12th Fiscal Period 13th Fiscal Period 14th Fiscal Period
Items

Return on Asset (ROA)
annualized
Return on Equity (ROE)
annualized
Loan-to-Value (LTV 1)

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

2008/7/1-

2009/1/1-

2009/7/1-

2010/1/1-

2010/1/1-

2008/12/31

2009/6/30

2009/12/31

2010/12/31

2010/12/31

1.6%

0.8%

0.6%

- 9.0%

0.4%

3.1%

1.6%

1.2%

- 9.0%

0.4%

3.7%

1.8%

1.4%

14.8%

0.9%

7.4%

3.7%

2.7%

14.8%

0.9%

57.3%

56.6%

56.0%

62.8%

62.8%

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

54.7%

54.6%

54.0%

56.6%

56.6%

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

42.2%

42.6%

43.0%

39.8%

39.8%

Debt Service Coverage Ratio (DSCR)

3.6X

3.7X

2.9X

5.7X

2.0X

Net Operating Income (NOI) (ths JPY)

1,175,628

1,117,247

1,063,865

3,754,420

3,754,420

5.3%

5.2%

4.9%

5.0%

5.0%

Depreciation Expense (ths JPY)

300,212289,665284,802964,612964,612

Funds from Operation (FFO) (ths JPY)

711,460

669,913550,436

1,241,586

1,241,586

8.2%

7.6%

7.6%

8.0%

7.7%

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 Interest-Bearing Debt / End-of-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
I li d C
Cap R
Rate
t =A
Annualized
li d NOI yieldi ld / (I(Interest-BearingttB i DDebt
bt – Cash
C h anddD
Depositit with
ith b
banks
k (i
(including
l di ththose iin ttrust)t)+ 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 16th Fiscal Period (As of Feb. 24, 2011)
Items

15th Fiscal Period (Results)

16th Fiscal Period (Forecast)

2010/1/12010/12/31

2011/1/12011/6/30

Ths JPY

Ⅰ.

Operatingp
g revenues
Rental revenues (1)Ⅱ. Operating expenses

100.0

2,343,000
,
,

100.0

-3,005,724,,

5,348,724

100.0

2,343,000

100.0-3,005,724

10,590,560

198.0

1,476,000

63.0-9,114,560

2,558,916

1,191,000-1,367,916

Facilities management fees

878,816

422,000-456,816

Taxes and other public charges

420,143

167,000-253,143p
Insurance expenses

15,650,5,000,-10,650,

Other expenses

279,694

174,000-105,694

Depreciation expenses (3)

%
-56.2

■Operating exp.: JPY1,476mn(Decrease of JPY9,114mn)-86.1■Property related exp.: JPY1,191mn（Decrease of JPY1,367mn）<Forecast: 16th Fiscal Period>- Planned main capital expenditure964,612420,000-544,612

3,754,420

1,572,000-2,182,420

B14 Lexington Plaza Nishigotanda JPY 57 mn
B13 New Edobashi Building JPY30 mn

Rental income (1)-(2)2,789,807

1,152,000-1,637,807- Planned maintenance costs: JPY50mn

Loss from sales of properties

7,362,355--7,362,355

Asset management fees

327,747

152,000-175,747
175,747

Other operating expenses

341,539

132,000-209,539

Operating income-5,241,835-98.0

867,000

37.0

6,108,835-116.5

14,573

0.3

0

0.0

-14,573-100.01,851,268

34.6

863,000

36.8-988,268-53.4-7,078,530-132.34,000

0.2

7,082,530-100.1

89.1

4,000

0.2

Ⅲ. Non-operating revenues
Ⅳ. Non-operating expenses
Ordinary income
Extraordinary income (Gain on negative goodwill)

11 843 160
11,843,160

Income before income taxes

4,764,630

Income and other taxes
Net income--11
11,843,160
843 160-4,760,630

-99.9

6,851

0.1

0

0.0

-6,851-100.04,757,778

89.0

3,000

0.2

-4,754,778-99.9

Assumptions for Forecast: Assets: 55 properties
 Units issued and outstanding: 636,695 units Reversal of Earned Surplus: JPY 123 mn (Note 4)(Note 4)Ths JPY%

5,348,724,,

Property related expenses (2)NOI (1)-(2)+(3)(Note 1)((Note 2))(Note 3)Ths JPY%■Rental rev.: JPY2,343mn(Decrease of JPY3,005mn)

Changes

Forecasted Distribution
for the 16th Fiscal Period: JPY 200 per unit (Note 4)<Results:<Res
lts 15th Fiscal Period>- Total of capital expenditure:JPY173mn- Total of maintenance costs etc.
:JPY171mn■Non-operating exp.: JPY 863 mn(Decrease of JPY 988 mn)<breakdown>- Interest exp.: JPY 604 mn- Finance related costs: JPY 257 mn- OtherOth non-operatingti exp.: JPY 1 mn
(Ref.) For the ratio of Financing Costs (Interest
Expenses + Finance Related Costs) against
Operating Income, please see P.22.

Figures are rounded down to the indicated unit and percentages are rounded to one decimal place. Moreover, figures of the 16th Fiscal Period (Forecasts) are rounded down to the million JPY.
If INV decides to acquireqor disposep
ap
property,
p y, INV will review and revise the forecast and will disclose the revised forecast in compliancepwith the rules of Tokyoy Stock Exchange.
g“Net Income” of 15th Fiscal Period (Results) is the amount after adding the gain on negative goodwill brought in connection with the Merger and deducting the loss from the sales of properties,
and therefore is different from the resource of distribution.
The actual resource of distribution for the 15th Fiscal Period, without such addition or deduction, is JPY 276,962 ths.
Also, operating revenues of the 15th Fiscal Period after eliminating the effect of loss from the sales of properties are JPY 2,120,519 ths.
Regarding forecasted distribution for the 16th Fiscal Period, it is the premise that the total distribution amount will be JPY 127 million by utilizing JPY 123 million out of the earned surplus (JPY4,480 million), which accrued by the effect of the gain on negative goodwill recognized on the 15th Fiscal Period, in addition to JPY 3 million of net income.

8

Changes in B/S by the Merger<TGR> B/S as of14th Fiscal Period
Ended Dec. 2009

Assets45.1

Liabilities
25.7(Interest-bearing debt: 24.4)

Net Assets
19 4
19.4

Sold 49 of properties and repaid JPY32.3 bn (Note 3) of borrowings after the Merger by Dec. 2010

<INV> B/S as of Feb. 1, 2010 (the Merger)<LCP was absorbed by TGR with Purchase Method >Assets 116.6

Liabilities 79.2
(Interest-bearing(Interest
bearing
debt: 75.2)

No.of Properties TGR held:61<INV> B/S as of Dec. 31, 2010

No.of Outstanding
Investment Units of TGR: 53,899

Assets 75.9

Liabilities 45.7(
(Interest-bearinggdebt 43.0)<LCP> B/S as of the Merger
with TGR (as of Jan.31, 2010)(Market valuation of properties LCP held:
basically, valuation as of Feb. 2010 (Note 1))

AssetsA(Fair
MarketValue) 71.9

Net Assets 37.4

LiabilitiesLibili i
53.4(1)Unitholders’ Capital:
19.1(2)Capital Surplus: 6.2(3)Negative Goodwill:
11.8(4)UnappropriatedProfits: 0.2（Interestbearing debt:
50.9）

Net Assets
18.4

No. of Properties INV held:104
No.of Outstanding(Note 2)
Investment Units of INV: 636,695

Net Assets30.2(1)19.1(2) 6.3(3) 4.5(4) 0.202

No. of Properties INV held: 55
No.of Outstanding(Note 2)
Investment Units of INV: 636,695(Note1)

No.of Properties LCP held: 43
No.of Outstanding
Investment Units of LCP:91,800

The market value of the properties, which INV held as of the end of December 2010, is calculated based on theappraisal values as of February 1, 2010 and the market value of the properties, which INV sold by the end of
December 2010, is recognized based on sales prices.
(Note 2) In conjunction with the Merger effective on Feb. 1, 2010, INV split one investment unit into five units.
(Note 3) For the details of borrowings, please refer to P.22 “Overview of Borrowings”(Note 4) Figures are rounded down to the 0.1 billion JPY.

9

Memo

10

Section 2 Financial Statements
for the 15th Fiscal Period

11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
Directors
Asset management fees
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Bad debt expenses
Other operating expenses
Operating income / loss
Non-operating revenues
Interest revenues
Other non-operating revenues
Non-operating expenses
Interest expenses
Finance related costs
Public listing related costs
Other non-operating expenses
Amortization of offering costs
Ordinary income / loss
Extraordinary income
Gain on negative goodwill
Income before income taxes
Corporate tax
tax, resident tax and business tax
Tax adjustments
Net income
Retained earnings at the beginning of the period
Unappropriated retained earnings / loss at the end of the period

14th Fiscal Period

15th Fiscal Period( 6 months
Ended Dec. 31, 2009)( 12 months
Ended Dec. 31, 2010)

Ths JPY%

Ths JPY%

Ths JPY

%

100 0
100.0

5,348,7245
348 724
5,348,724
10,590,560
2,558,916
964,6123,754,420
7,362,355
5 400
5,400
327,747
17,17881,84056
613
236,451-5 241 835-5,241,835
14,573
2,755
11,818
1,851,268
1,217,526
629,909
2 180
2,180
1,652
-7,078,530
11,843,160
11,843,160
4,764,630
1 209
1,209
5,641
4,757,778
30
4,757,809

100 0
100.0

3,817,6803
817 680
3,817,680
9,625,259
1,806,935
679,8102,690,554
7,362,355
2 500
2,500
216,747
5,056
56,442
56-426
175,591-5 807 579-5,807,579
13,293
2,138
11,155
1,551,301
922,671626,791
1 090
1,090
1,040
-291
-7,345,587
11,843,160
11,843,160
4,497,573-4,5084 508
9,936
4,492,145
19
4,492,164

71 4
71.4

1,531,0441
531 044
1,531,044
965,300
751,981284,802
1,063,865
2 900
2,900
111,000
12,12225,3981,039
60,859565 743565,743
1,280
617
663
299,966
294,855
3,117
1 090
1,090
611
291
267,057
267,057
5 718
5,718-4,294
265,63310
265,644

63.0

37.0
37
0
0.1

19.6

17.4

17.4

17.3
17.4

198.0

-98.0
-98
0
0.3

34.6

-132.3

89.1

89.0
89.0

Changes

90.9

110.8
110
8
91.2

■Loss from sales of properties:
JPY 7,362 mn→ Sold 49 owned properties<Details of properties sold>- Total acquisition price: JPY 40,081 mn- Total sale price: JPY 32,544 mn- Total book value: JPY 39,263 mn- Total exp. related to sales: JPY 643 mn- Total Loss from sales of properties:
JPY 7,362 mn
No effect on distribution is expectedby utilizing extraordinary income (gainon negative goodwill) JPY 11.8 bn

83.8■NOI: JPY 3,754 mn(Increase of JPY 2,690 mn)
103.8

94.4

94.4
94.4

■Interest exp.: JPY 1,217 mn(Increase of JPY 922 mn)■Finance related costs: JPY 629 mn(Increase of JPY 626 mn)(Note) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

12Balance Sheet - Assets
Items

AssetsC
Current
t assetstCash and deposits
Cash and deposits in trust
Accounts receivables
Advances paid
Deposit payments
Prepaid expenses
Consumption tax receivable
D f
Deferredd iincome ttaxes
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment, at cost
Buildings
Equipment
Building improvements
T l ffurniture
Tools,
itandd fifixturest
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
Other intangible assets in trust
OthersTotal intangible assets
Investment and other assets
Guarantee deposits
Long-term prepaid expenses
OthersTotal investment and other assets
Total non-current assets
Total assets

14th Fiscal Period

15th Fiscal Period( As of Dec.31, 2009)( As of Dec.31, 2010)

Ths JPY

Ths JPY

710,165
1,854,611
42,634
20,45814,33686,452
4,261
5 641
5,641
-564
2,737,997

644,977
144,503
9,170
939
3,653,526
14,777,703
2,257,721
147,90153,48820,520,574
42,210,507
103
3,686
3,790
140,226
955
51,745
192 927
192,927
42,407,224
45,145,222%

6.1

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

93.5

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

0.0

2,366
2,366

04
0.4
93.9
100.0

10,06025,25735 31735,317
69,766,781
75,861,170

Changes%Ths JPY%■ Properties INV held
→ 104 properties
as of the effective date of the Merger(Total acquisition price: JPY 1,106 mn)

8.0

2,805,464
544,819-20,264-11,135-14,336
61,239-4,261-5,641
5 641
508
3,356,391

122.6

91.9

1,982,452-106,041-6,025-939
939-939,905
8,602,610
1,425,064
52,638
1,302
16,507,434
27,518,590

65.2

0.0

-103
-1,320-1,423

-37.6

00
0.0
92.0
100.0

-130,166-955-26,487-157,609
157 609
27,359,556
30,715,947

-81.7
81 7
64.5
68.0

→ 55 properties
as of the end of 15th fiscal period(Total acquisition price: JPY 705 mn)(Note) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

13

Balance Sheet – Liabilities/Net Assets
Items

14th Fiscal Period

15th Fiscal Period( As of Dec.31, 2009)( As of Dec.31, 2010)

Ths JPY%

Ths JPY

121,823
11,499,975
12,859,000
14,873
131,448
5,601
157,230,
10,75024,800,703

Changes%Ths JPY%

144,429

22,60554.9

26,165,485
16,800,000
13,724
170,665
593,170
295,659,
5,680
44,188,814

58.2

14,665,510
3,941,000-1,14839,216-5,601
593,170
138,428,-5,07019,388,110

78.2

2.1
57.0

1,332,118
183,579
1,515,698
45,704,512

2.0
60.2

510,399
60,840571,240
19,959,351

60.5
77.5

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
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

821,718
122,739
944,457
25,745,160

19,134,417

19,134,417-

265,644
265,644
19,400,061
19,400,061
45,145,222

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

6,264,432
4,492,164
10,756,596
10,756,596
10,756,596
30,715,947

43.0
43.0
100.0

39.8
39.8
100.0

■ Repaid JPY 32,319 mn of borrowings
Repaid JPY 32,319 mn by repayments before the maturity date in connection withthe sales of properties and by scheduled repayments during the15th Fiscal Period.
■ Borrowings as of the End of the 15th Fiscal Period: JPY 42,965 mn◇ Short-term debt:
JPY 26,165 mn◇ Current portion of long-term debts:
JPY 16,800 mn◇ Loan to Value (LTV)56 6 %
56.6
LTV=End-of-period Interest-Bearing Debt / End-of-period Total Assets x 100

55.4
55.4
68.0

The 15th Fiscal Period
Net assets per unit JPY 47,364(Units issued and outstanding:
636,695 units)(Note) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

14

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

Cash flows from operating activities
Net income before taxes
Depreciation expenses
Gain on negative goodwill
Public listing related costs
Finance related costs
Amortization of offering costs
Interest received
Interest paid
Increase (decrease) in allowance for doubtful accounts
Amortization of tenant leasehold and security deposits in trustD
Decrease(i(increase)) iin accounts receivablei bl
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 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
P
Payment
t off tenanttt leaseholdlh ld andd security
it ddeposits
it iin ttrustt
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

14th Fi
Fiscall Period
P i d

15th Fi
Fiscall Period
P i d( 6 months
Ended Dec.31, 2009)
Ths JPY( 12 months
Ended Dec.31, 2010)
Ths JPY

267,057
285,462
1,090
3,117
291
(617)
294,855(606)(5,102)(18 3 2)
(18,352)532(3,699)(9,565)42,122(4,400)
4,648
434
2,951
(61,017)799,204
617(263 525)(263,525)(631)
535,665

4,764,630
965,933(11 843 160)
(11,843,160)
2,180
629,909(2,755)1,217,526(508)(5,774)181 000
181,000
14,336
4,261
140,166
583,913(100,092)(331,601)(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(63,312)(2,085)106(59 868)(59,868)
59,586(65,573)(945)(121,318)(192,233)
39,395(1 005 932)
(1,005,932)
132,462(1,148,571)

11,599,980(100,005)(12,115,000)(1,090)(3,117)(352,306)(971,538)(501,446)
3,066,223
2,564,776

11,499,975(17,960,777)(25,859,000)(2,180)(499,513)(304,678)(33,126,174)(702,361)
2,564,776
4,052,645
5,915,060

Items

14th Fiscal Period

15th Fiscal Period(6 months Ended(12 months Ended

Dec. 31, 2009)

Dec. 31, 2010)

Unappropriated retained earnings(Ths JPY)

265,644

4,757,809

Distributions(Ths JPY)

265,614

276,962

(JPY)

4,928

435

30

4 480 847
4,480,847

Distribution per unit
Retained earnings carried forward(Ths JPY)(Note) Figures are rounded down to the indicated unit.

15Section 3 Measures Taken after the Merger / Portfolio~ Sales of Properties, Repayments of Borrowings

16Portfolio History (Asset Value)

Merged with LCP
as of Feb. 1,, 2010
(unit: JPY 100 million)

1,200

1,106
922

,
1,000

925

884

875

875

875

800

705

600

455

377

400
200

117

138

210

228

Former TGR
旧TGR

516
392

448

448

440

430

430

Former LCP
旧LCP
INV (former TGR)
INV（旧TGR）

240

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 (Fiscal Period)'06/08 '07/02 '07/08 '08/02 '08/08 '09/02 '09/08
Fiscal Period 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

(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 LCP
bought such properties and it is different from the actual acquisition price of INV.
((Note 2)) Figuresgare rounded down to the indicated unit.

17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.

18

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

By Geograp
phyTohoku 1.8%

<Former 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
15th Fiscal Period (Dec. 31, 2010)
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%

Tokyo otherthan 23 wards
2.6%

East 7.3%

South 14.1%
East 3.2%

Kansai 0.7%

Central 5
wards 38.1%
North 9.0%

Tokyo otherthan 23 wards
0.8%
North 1.9%

South 21.7%

Chubu 1.9%
Hokkaido
1.7%
Tohoku
10.2%

South
13.5%
West 7.8%

West 3.9%

Byy 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%

0-4 y
years
11.9%

20- years
18.5%
0-4 years
33.4%

20- years
24.1%
5-9 years
36.3%

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

Residences
62.4%

15-19 years
23.5%
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.18 (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 December 31, 2010 and are rounded to one decimal place.

10-14 years
4.1%

Weightedaverage
averageage:
age:12.8
12.8years
years
Weighted

19

Portfolio List
(As of Dec. 31, 2010)
BeforeMerger

No.

TGR

A26

TGR
TGR

Type

Area

Property Name

Acquisiton Price Investment(mn JPY)
Ratio (%)

Loan Secured

BeforeMerger

No.

Type

B08

OfficeArea

Property Name

Acquisiton Price Investment(mn JPY)

Ratio (%)

Loan Secured

Residence The Greater Tokyo Area Nisshin Palacestage Daitabashi

1,251

A27

Residence The Greater Tokyo Area Nisshin Palacestage Higashi-Nagasaki

A28

Residence The Greater Tokyo Area Growth Maison Gotanda

TGR

A29

Residence The Greater Tokyo Area Growth Maison Kameido

TGR

A30

Residence The Greater Tokyo Area Emerald House

TGR

A31

Residence The Greater Tokyo Area Harmonie Ochanomizu

1,428

TGR

A32

Residence The Greater Tokyo Area Suncrest Shakujii Koen

1,088

TGR

A33

Residence The Greater Tokyo Area Growth Maison Shin Yokohama

1,059

TGR

A34

Residence The Greater Tokyo Area Belle Face Ueno Okachimachi

1,023

1.45 Term loan (D)

TGR

A35

Residence The Greater Tokyo Area Grand Rire Kameido906

1.28 Term loan (D)

TGR

C01

Parking

The Greater Tokyo Area Stop Parking Kanda-Sudacho

97

0.14

TGR

A36

Residence The Greater Tokyo Area Growth Maison Ikebukuro

825

1.17 Term loan (D)

LCP

C21

Senior

The Greater Tokyo Area Bon Sejour Chitose Funabashi

685

0.97 Term loan (Aozora)

TGR

1.77 Term loan (D)

TGR

1,229

1.74 Term loan (D)

TGR

B09

OfficeThe Greater Tokyo Area Shinjuku Island

715

1.01 Term loan (D)888

1.26 Term loan (D)

LCP

B13

OfficeThe Greater Tokyo Area New Edobashi Building

7,410

10.51 Shinsei trust loan

1,070

1.52 Term loan (D)

LCP

B14

OfficeThe Greater Tokyo Area Lexington Plaza Nishigotanda

4,880

6.92 Shinsei trust loan

1 505
1,505

2 13 Term loan (D)
2.13

LCP

B15

OfficeThe Greater TokyoTok o Area Cross Sq
Squareare NAKANO

1 060
1,060

1 50 Term loan (Ao
1.50(Aozora)ora)

2.02 Term loan (D)

LCP

B16

OfficeMain Provincial City

816

1.16 Term loan (Aozora)

1.54 Term loan (D)

LCP

B17

Commercial Main Provincial City

Lexington Plaza Hachiman

3,280

4.65 Term loan (Aozora)

1.50 Term loan (D)

LCP

B18

Commercial Main Provincial City

Loc Town Sukagawa

2,320

3.29 Term loan (Aozora)

21,78230.88

The Greater Tokyo Area Kindai Kagaku Sha Building

Ohki Aoba Building

Subtotal for Offices and Commercial Facilities (8 properties)

1,301

1.85 Term loan (D)－A37

Residence The Greater Tokyo Area Growth Maison Yoga

795

1.13 Term loan (D)

LCP

C22

Senior

The Greater Tokyo Area Bon Sejour Yotsugi

652

0.92 Term loan (Aozora)

TGR

A38

Residence The Greater Tokyo Area Route Tachikawa

676

0.96 Term loan (D)

LCP

C23

Senior

The Greater Tokyo Area Bon Sejour Hino

574

0.81 Term loan (Aozora)

TGR

A39

Residence The Greater Tokyo Area Shibuya Honmachi Mansion

651

0 92 Term loan (D)
0.92

LCP

C24

Senior

The Greater Tokyo Area Bon Sejour Musashi-Shinjo

486

0 69 24th individual credit loan
0.69

TGR

A40

Residence The Greater Tokyo Area City Heights Kinuta

646

0.92 Term loan (D)

LCP

C25

SeniorMain Provincial City

1,050

1.49 24th individual credit loan

TGR

A41

Residence The Greater Tokyo Area Acseeds Tower Kawaguchi Namiki

620

0.88 Term loan (D)

LCP

C26

Senior

The Greater Tokyo Area Bon Sejour Hadano Shibusawa

681

0.97 24th individual credit loan

TGR

A42

Residence The Greater Tokyo Area Capital Heights Kagurazaka

604

0.86 Term loan (D)

LCP

C27

SeniorMain Provincial City

480

0.68 24th individual credit loan

TGR

A43

Residence The Greater Tokyo Area College Square Machida589

0.84 Term loan (D)

TGR

A44

Residence The Greater Tokyo Area Belair Meguro

589

0.84 Term loan (D)

TGR

A45

Residence The Greater Tokyo Area Wacore Tsunashima Ⅰ

572

0.81 Term loan (D)

TGR

A46

Residence The Greater Tokyo Area Foros Nakamurabashi

566

0.80 Term loan (D)

TGR

A47

Residence The Greater Tokyo Area Growth Maison Kaijin

557

0.79 Term loan (D)

TGR

A48

Residence The Greater Tokyo Area College Square Machiya

LCP

A51

Residence The Greater Tokyo Area City House Tokyo Shinbashi

2,520

510

3.57 Term loan (Aozora)

3,260

4.62 Term loan (Aozora)

A52

Residence The Greater Tokyo Area Winbell Kagurazaka

LCP

A53

Residence The Greater Tokyo Area Nishiwaseda Cresent Mansion

1,880

2.67 Term loan (Aozora)

LCP

A54

Residence The Greater Tokyo Area Lexington Square Akebonobashi

1,450

2.06 Term loan (Aozora)

1,070

1.52 Term loan (Aozora)

LCP

A56

Residence The Greater Tokyo Area Casa Eremitaggio

LCP

A59

Residence The Greater Tokyo Area Towa City Coop Shin-otsuka Ⅱ866

1.23 Term loan (Aozora)

LCP

A61

Residence The Greater Tokyo Area Bichsel Musashiseki

577

0.82 Term loan (Aozora)

LCP

A62

Residence The Greater Tokyo Area Lexel Mansion Ueno Matsugaya

LCP

A63

Residence The Greater Tokyo Area Towa City Coop Sengencho

LCP

A64

Residence Main Provincial City

Royal Park Omachi

LCP

A65

Residence Main Provincial City

Lexington Square Haginomachi

330

0.47 Term loan (Aozora)

LCP

A66

Residence Main Provincial City

Visconti Kakuozan

255

0.36 Term loan (Aozora)

LCP

A71

Residence The Greater Tokyo Area Lexington Square Daitabashi

977

1.39 24th individual credit loan

LCP

A72

Residence The Greater Tokyo Area Lexington Square Honjo-Azumabashi

511

0.72 24th individual credit loan

LCP

A73

Residence Main Provincial City

LCP

A75

Residence The Greater Tokyo Area Spacia Ebisu

7,010

9.94 Shinsei trust loan

Subtotal for Residences (39 properties)

44,04062.44

AMS TOWER Minami 6-Jo

Subtotal for Parking lots and Hotels and Seniors (8 properties)
Total (55 properties)

4,705

6.67

70,528100.001.38 Term loan (Aozora)

1,110

1.57 Term loan (Aozora)

415

0.59 Term loan (Aozora)

1,180

Bon Sejour Itami

0.72 Term loan (D)

LCP

970

Bon Sejour Komaki

1.67 24th individual credit loan

(Note 1) Investment Ratio = individual acquisition price/ total acquisition price
Figures are rounded to the second decimal place.
(Note 2) Acquisition Price is rounded down to the indicated unit.
(Note 3) “The Greater Tokyo Area” in the column “Area” of the above list represents “Tokyo, Kanagawa, Chiba and Saitama prefectures”.
Also, “Main Provincial City” in the same column is defined as surrounding area of the Greater Tokyo Area and major cities across Japan such as Ordinance-designated cities except for the Greater
Tokyo Area and surrounding area of these major cities.
(Note 4) “TGR” in the column “Before Merger” in the above list represents the properties of former TGR and “LCP’” in the same column represents those of former LCP before the Merger .

20

Properties Sold after the Merger(JPY mn)
Date of Sale No.

Type

Area

Property Name

Park Villa Yakumo
The Greater Tokyo Area
J-stage Wakabayashi
The Greater Tokyo Area
Habitation Claire
The Greater Tokyo Area
Court Core Yurigaoka
The Greater Tokyo Area
The Greater Tokyo Area
Comfort Naka Meguro
Growth Maison Waseda Tsurumaki
The Greater Tokyo Area
Growth Maison Ginza
The Greater Tokyo Area
Claire Maison
The Greater Tokyo Area
Inage Daiei Mansion
The Greater Tokyo Area
Fine Court Tateishi
The Greater Tokyo Area
Century Toyabe
Main Provincial City
Unifort Megro-Nakacho
The Greater Tokyo Area
Montserrat Yotsuya
The Greater Tokyo Area
The Greater Tokyo Area
Lexington Square Shimokitazawa
Th G
The
Greatert TokyoT k AreaA
H
Homestt Ikejiri
Ik ji i
The Greater Tokyo Area
Towa City Coop Asukayama-Koen
Main Provincial City
Lexington Square Kitahorie
Main Provincial City
Lexington Square Shinmachi
Main Provincial City
Luna Court Tsukamoto
Main Provincial City
Lexington Square Fushimi
Lexington Square Shirokane Takanawa
The Greater Tokyo Area
The Palms Yoyogi Uehara Cosmo Terrace
The Greater Tokyo Area
Sun Terrace Yoyogi Uehara
The Greater Tokyo Area
Lexington Square Shinjuku Gyoen
The Greater Tokyo Area
Main Pro
Provincial
incial Cit
City
BIG TOWER Minami 3
3-JoJo
Subtotal of Residences (25 properties)
Nihonbashi 2nd Building
Apr. 01, '10 B03
OfficeThe Greater Tokyo Area
Imperial Higashi Kurume D
Apr. 01, '10 B06 Commercial The Greater Tokyo Area
Baysite Court Yokohama
Apr. 01, '10 B10 Commercial The Greater Tokyo Area
Yakuodo Hirosaki Yasuhara
Apr. 01, '10 B11 Commercial Main Provincial City
Kokura Kosan 7th / 17th /20th
Apr. 01, '10 B12
OfficeMain Provincial City
Subtotal of Offices and Commercial Facilities (5 properties)
The Greater Tokyo Area
Stop Parking Chiba-Chuo
Feb. 22, '10 C02
Parking
Main Provincial City
Stop Parking Tokuyama-eki-mae
Mar. 29, '10 C03
Parking
Apr 01
Apr.
01, '10
10 C04
Parking
Main Provincial City
Kokura Kosan East Parking
Kokura-Kosan
Apr. 01, '10 C05
Parking
The Greater Tokyo Area
Stop Cycle Shin-Koiwa 1st
Apr. 01, '10 C06
Parking
The Greater Tokyo Area
Stop Cycle Shin-Koiwa 2nd
The Greater Tokyo Area
Stop Parking Hiratsuka-Beniyacho
Apr. 01, '10 C07
Parking
The Greater Tokyo Area
Stop Parking Kita-Urawa
Apr. 01, '10 C08
Parking
The Greater Tokyo Area
Stop Parking Shin-Matsuda
Apr. 01, '10 C09
Parking
The Greater Tokyo Area
Stop Parking Yotsukaido
Apr. 01, '10 C10
Parking
The Greater Tokyo Area
PEIT Uchi-Kanda
Mar. 02, '10 C11
Parking
The Greater Tokyo Area
PEIT Ikegami
Feb. 26, '10 C12
Parking
The Greater Tokyo Area
PEIT Ueno 3-chome 1st
Feb. 26, '10 C13
Parking
Mar 08Mar.
08, '10
10 C14
Parking
The Greater Tokyo Area
PEIT Komagata 1st
Feb. 19, '10 C15
Parking
Main Provincial City
PEIT Fukushima Jimbacho 1st
The Greater Tokyo Area
Stop Parking Kurihama 1st
Feb. 23, '10 C16
Parking
The Greater Tokyo Area
Stop Parking Shin-Tokorozawa 1st
Feb. 24, '10 C17
Parking
The Greater Tokyo Area
Stop Parking Shin-Tokorozawa 2nd
Feb. 24, '10 C18
Parking
Main Provincial City
PEIT Naka-Gofukumachi 1st
Feb. 25, '10 C19
Parking
Lexington Plaza Hiroshima Otemachi
Jun. 29, '10 C20
Hotel
Main Provincial City
Subtotal of Parking Lots and Hotels and Seniors (19 properties)
Total (49 properties)
Apr. 01, '10 A04
Apr. 01, '10 A06
Apr. 01, '10 A14
Apr. 01, '10 A15
Apr. 01, '10 A17
Apr. 01, '10 A18
Apr. 01, '10 A19
Apr. 01, '10 A20
Apr. 01, '10 A21
Apr. 01, '10 A23
Apr. 01, '10 A49
Apr. 01, '10 A50
Mar. 10, '10 A55
Mar. 31, '10 A57
M 11
Mar.
11, '10 A58
Feb. 22, '10 A60
Mar. 16, '10 A67
Mar. 16, '10 A68
Mar. 16, '10 A69
Jun. 30, '10 A70
Mar. 31, '10 A74
Mar. 25, '10 A76
Mar. 25, '10 A77
Mar. 25, '10 A78
J n 30Jun.
30, '10 A79

Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
R id
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence
Residence

Acquisition Price
1,740
629
1,317
423
1,086
971
734
678
621
502
300
1,500
356
2,370
552
400
436
300
399
2,128
5,370
1,250
1,180
1,010
1 665
1,665
27,920
2,950
349
960
410
3,250
7,919
92
293
1 100
1,100
152
150
112
81
59
29
176
133
98
87
83
57
50
48
28
1,400
4,241
40,081

Sale Price(1)(Note 1)

356
2,370
552
400
436
300
399
2,128
5,370
1,250
1,180
1,010
1 665
1,665
24,745(Note 1)

5,264
73
175

(Note 1)

114
62
76
62
40
45
48
32
19
1,400
2,535
32,544

Book Value (2)
1,785
630
1,238
390
1,043
932
710
666
593
482
306
1,508
355
2,365
551
399
435
299
397
2,112
5,359
1,247
1,177
1,008
1 649
1,649
27,652
2,453
321
951
404
3,189
7,319
95
305
1 113
1,113
155
154
115
83
62
30
179
136
101
91
85
60
53
50
30
1,386
4,291
39,263

Cost related toSale (3)(Note 2)

10
60
12
1
11
8
9
72
105
11
10
8
52
478

(Note 2)109
24(Note 2)

3
1
2
1
1
1
1
0
0
19
54
643

Gain/Loss fromsales of properties(1)-(2)-(3)Loan Secured

Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
(Note 3)
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
-10 Term loan (Aozora)-56 Term loan (Aozora)
T
loan
l
(A
(Aozora))-12 Term-0 Term loan (Aozora)-9 Term loan (Aozora)-7 Term loan (Aozora)-7 Term loan (Aozora)-56 GE loan
-94 Shinsei trust loan
-9 Shinsei trust loan
-8 Shinsei trust loan
-6 Shinsei trust loan
-36
36 GE loan
-3,385
Norinchukin trust loan
Norinchukin trust loan
(Note 3)
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
-2,165-23-133
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
(Note 3)
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
Norinchukin trust loan
-68
-75
-26
-30
30
-45
-15
-5
-18
-10
-5 25th individual credit loan
-1,811-7,362(Note 1)
Total Sale Price: JPY 12,970 mn
The details of each of sale priceof these 24 properties are notindicated as consent fordisclosure of such sale price has
not been obtained from thebuyer.
(Note 2)
Total Cost: JPY 228 mn
The details of each of cost
related to sale of these 24
properties are not indicated asconsent for disclosure of such
sale price has not been obtained
from the buyer.
(Note 3)
Total loss: JPY -6,584 mn
The details of each of loss fromsale of these 24 properties are
not indicated as consent fordisclosure of such sale price has
not been obtained from thebuyer.
(Note 4)
Figures are rounded down to theindicated unit.
(Note 5)
Book value is the amount as ofthe date of sale of each ofproperties.

21

Overview of Borrowings (as of Feb. 28, 2011)
R
Repaymentt St
Statust b
by eachh loansl
Refinance ofexisting
Balance as ofborrowing as of Feb. 28, 2011
Feb. 3, 2010
JPY7,885mn
JPY5,816mn

Balance as ofFeb. 1, 2010

LenderTerm loan
Aozora syndicate loan

24th individual credit loan
25th individual credit loan

Term loan (C)Term loan (D)GE loan
Shinsei trust loan
Securitized loan
Norinchukin trust loan

Aozora Bank, Ltd.
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Resona Bank, Limited
THE NISHI-NIPPON CITY BANK, LTD.
The Musashino Bank, Ltd.
Shinsei Bank, Limited
The Chuo Mitsui Trust and Banking
Company, Limited
Subtotal
Aozora Bank, Ltd.
Shinsei Bank, Limited
The Chuo Mitsui Trust and Banking
Company, LimitedAozora Bank, Ltd.
Resona Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
The Musashino Bank, Ltd.
Subtotal
Th Chuo
The
Ch
Mit
Mitsuii T
Trustt anddB
BankingkiCompany, LimitedAozora Bank, Ltd.
Resona Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
The Musashino Bank, Ltd.
Subtotal
GE Japan, Co., Ltd.
Shi
ShinseiiT
Trust & B
BankingkiCCo., LLtd.
d(Front lender)
Norinchukin Trust & Banking Co., Ltd.
(Front lender)
Subtotal

Total

Forecasts for the Fiscal Period Ending June 2011 (Note 1)(January 1, 2011 - June 30, 2011)
Fiscal Period Ended December 2010 (Note 1)(January 1, 2010 - December 31, 2010)
Fiscal Period Ended December 2009
(July 1, 2009 - December 31, 2009)
Fiscal Period Ended June 2009 (Note 1)(January 1, 2009 - June 30, 2009)
Fiscal Period Ended December 2008 (Note 1)(July 1, 2008 - December 31, 2008)

Maturity date

JPY2,069mn

Balance as ofDecember 31,
2010
JPY5,847mn

JPY1 420mn
JPY1,420mn-

JPY1 047mn
JPY1,047mn

JPY372mn

JPY1 053mn
JPY1,053mn

JPY1,420mn
JPY1,420mn
JPY1,405mn
JPY937mn-

JPY1,047mn
JPY1,047mn
JPY1,036mn
JPY691mn

JPY372mn
JPY372mn
JPY368mn
JPY245mn

JPY1,053mn
JPY1,053mn
JPY1,042mn
JPY694mn

JPY655mn-

JPY483mn

JPY172mn

JPY15,146mn
JPY4,641mn
JPY1,338mn-

JPY11,172mn
JPY3,646mn-

JPY3,974mn
JPY995mn
JPY1,338mn

Mar 31, 2011

JPY486mn
Mar 31, 2011
Jun 29, 2010 (payment in full)

JPY11,230mn
JPY3,665mn-

Feb 3, 2010 (payment in full)

JPY5,174mn--

JPY5,174mn-

JPY2,874mn
JPY1,533mn--

JPY2,874mn
JPY1,533mn-

JPY958mn--

JPY958mn

JPY958mn
JPY11,499mn--

JPY958mn
JPY11,499mn-

JPY5,174mn

JPY5,050mn

JPY124mn-

JPY2,874mn
JPY1,533mn

JPY2,805mn
JPY1,496mn

JPY69mn
JPY36mn-

JPY5,071mn

Mar 31, 2011

JPY2,817mn
JPY1,502mn-

JPY958mn

JPY935mn

JPY23mn

JPY939mn

JPY4,200mn

JPY958mn
JPY11,499mn-

JPY935mn
JPY11,223mn-

JPY23mn
JPY276mn
JPY4,200mn

Jun 30, 2010 (payment in full)

JPY939mn
JPY11,269mn-

JPY25,600mn-

JPY16,800mn

JPY8,800mn

Mar 31, 2011

JPY16,800mn

JPY5,211mn
JPY7,648mn
JPY12,859mn
JPY75,285mn

JPY11,499mn

JPY42,842mn

JPY5,211mn
JPY7,648mn
JPY12,859mn
JPY43,942mn(Reference) Ratio of Financing Costs against Operating Income of INV
Fiscal Period

Amount of
repayment

Operating Income(A)

Financing Costs(B) (Note 2)

Ratio of Financing
Costs(Ths JPY)(Ths JPY)(B) / (A) (%)

867,000

861,000

99.3

2,120,519

1,847,435

87.1

565,743

297,972

52.7

629,438

248,886

39.5

686,450

275,48040.1

Apr 1, 2010 (payment in full)-

JPY42,965mn(Note 1) The impact of gain / loss from sales of properties, etc., has been eliminated.
For the Fiscal Period Ended December 2010, JPY 7,362,355 thousand in loss from sales ofproperties have occurred (posted as “operating expenses”) due to the sales of properties after
the Merger. For the Fiscal Period Ended June 2009, JPY 23,441 thousand in loss from sales ofproperties have occurred (posted as “operating expenses”) and for the Fiscal Period Ended
December 2008, JPY 323,978 thousand in gain from sales of properties have occurred (posted
as “operating revenue”). Each of these had a great impact on operating income. The purposeof the chart is to show the ratio of financing costs against operating income occurring fromnormal business activities. Thus, they indicate the amount after eliminating the impact of loss
from sales of properties as operating expenses, and gain from sales of properties as operating
revenue accompanied by the sales of properties.
(Note 2) Financing Costs = “Interest expenses” + “Finance related costs”(Note 3) Figures are rounded down to the indicated unit and percentages are rounded to one decimal
place.
Moreover, figures of forecasts for the fiscal period ending June, 2011 are rounded down to themillion JPY.

22

Overview of Unitholders (1)First Half of 15th Fiscal Period (As of Jun. 30, 2010)Top
p 10 Unith
holders

Name

15th Fiscal Period (As of Dec. 31, 2010)

Number of units held

Name

(%)

Number of units held(%)

1 New Mission Funding Corporation

129,400 20.32%

1 New Mission Funding LLC

129,400 20.32%

2 GOLDMAN SACHS INTERNATIONAL

99,453 15.62%

2 PROSPECT JAPAN FUND LIMITED

53,422

8.39%

3 NCT Trust and Banking Corporation (Investment accounts)

44,702

7.02%

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

40,8196.41%

4 Japan Trustee Services Bank, Ltd. (Trust account)

23,0403.61%

4 GOLDMAN SACHS INTERNATIONAL

32,1785.05%

5 BBH FOR OPPENHEIMER QUEST INTERNATIONAL VALUE FUND

14,6062.29%

5 Japan Trustee Services Bank, Ltd. (Trust account)

30,178

4.73%

6 MINAMI-NIPPON Bank, LTD

8,870

1.39%

6 BBH FOR OPPENHEIMER QUEST INTERNATIONAL VALUE FUND

14,606

2.29%

7 The Master Trust Bank of Japan, Ltd. (Trust accounts)

7,629

1.19%

7 CGML-LONDON EQUITY

13,311

2.09%

8 BBH FOR OPPENHEIMER MASTER INTERNATIONAL VALUE FUND, LLC

7,621

1.19%

8 CGML-IPB CUSTOMER COLLATERAL ACCOUNT

13,003

2.04%

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

5,926

0.93%

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

8,169

1.28%

10 Trust & Custody Services Bank, Ltd. (Securities investment trust accounts)

5,536

0.86%

10 MINAMI-NIPPON Bank, LTD

7,879

1.23%

Total

346,783 54.46%
Issued Investment Units:636,695

Total

342,965 53.86%
Issued Investment Units:636,695((Note)) Percentages
g are rounded to two decimal p
places.

23

Overview of Unitholders (2)Breakdown by number of unitholders
Other domestic companies
1.2% (151 persons)Foreign investors
0.5% ((62 persons)p)Financial institutions(incl. securities companies)
0.3% (38 persons)

Other domestic companies
1.2% (146 persons)Foreign investors
0.5% ((64 persons)p)Financial institutions(incl. securities companies)
0.3% (34 persons)Individual & Other
98.0% (12,229 persons)Individual & Other
98.0% (11,742 persons)

As of the end of First Half of 15th Fiscal Period (Jun. 2010)
Number of total unitholders: 12,480 persons

As of the end of 15th Fiscal Period (Dec. 2010)
Number of total unitholders: 11,986 persons(Note) Percentages are rounded to one decimal place.

Breakdown by number of units held
Foreign investors
22.8% (145,128 units)

Foreign investors
25.0% (159,460 units)
Individual & Other
36 2% (23036.2%
(230,468
468 units)

Other domestic companies
22.8%(144,881 units)
Financial institutions(incl. securities companies)
18 3% (11618.3%
(116,218
218 units)

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

Individual & Other
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

24

Overview of Historical Unit Price

4th
(Yen)

5th

6th

7th

8th

9th

10th

11th

12th

13th

14th

15th
(Volume)

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

Dec.31,
2004

Jun.30,2005

Dec.31,
2005

Jun.30,2006

Dec.31,
2006

Jun.30,2007

Dec.31,
2007

Jun.30,2008

Dec.31,
2008

Jun.30,2009

Dec.31,
2009

Dec.31,
2010

In conjunction with
the Merger with LCP effective
on Feb. 1, 2010,
INV split one investment unit
into five units(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.

25

Section 4 Measures Taken for Internal Growth26

Overview of Occupancy Rates
100.0%＜Main factors＞

98.0%
96.0%

■B12 Shinjuku Island
Loss of one tenant(Rate of possession ofthis property: 100 %)(2)■B14 Lexington Plaza Nishigotanda
Strengthening leasing activities
Occupancy rates: 64%→80%(Increase of 16%)

(2)

94.0%
92.0%
90.0%

(1)

(3)

88.0%

(4)

86.0%
84.0%

(1)

(3)
(End of)

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Year 2010
Residences

Offices &Commercial Facilities(4)
Parking Lots &Hotels & Seniors

Total

Residences

Offices &Commercial Facilities

Parking Lots &Hotels & Seniors

Total

End of Dec. 2010

90.9%

86.7%

100.0%

91.1%

End of Nov. 2010

90.3%

91.1%

100.0%

92.1%

End of Oct. 2010

90.4%

91.1%

100.0%

92.2%

End of Sep. 2010

90.1%

91.2%

100.0%

92.0%

End of Aug
Aug. 2010

90 3%
90.3%

92 2%
92.2%

100 0%
100.0%

92 5%
92.5%

End of Jul. 2010

90.4%

92.8%

100.0%

92.7%

End of Jun. 2010

91.6%

94.0%

100.0%

93.7%

End of May 2010

92.5%

90.1%

100.0%

93.2%

End of Apr. 2010

92.7%

91.5%

100.0%

93.7%

End of Mar
Mar. 2010

92 8%
92.8%

92 3%
92.3%

100 0%
100.0%

93 8%
93.8%

End of Feb. 2010

93.0%

92.2%

100.0%

93.9%

End of Jan. 2010

93.0%

92.3%

100.0%

93.7%(Note 1) Occupancy rate = total leased area / total leasable area x100
(Note 2) The Occupancy Rates as of the end of January 2010 are those of former TGR (before the Merger).
(Note 3) Percentages are rounded to one decimal place.

■A73 AMS TOWER Minami 6-Jo
Occupancy rates: 89%→79%(Decrease of 10%)
■B13 New Edobashi Building
Loss of main tenant:Nomura Research Institute, Ltd.
Occupancy rates: 100%→63%(Decrease of 37%)

27

Pursuit of Stability & Growth
Point 1 Efforts to keep stable occupancy & rents

Point 2 Efforts to reduce property related exp.

Efficient Leasing Activities

1. Reconsideration of asset holding costs
Different fire insurances companies covered propertiesof former TGR and former LCP respectively under
different policies. In response to this INV has asked
insurance companies to submit bids for the fire
insurance under a uniform insurance standard andreduced insurance cost by lengthening the insurance
period. Re-examine the structures of our properties andseek the possibility of reducing fixed asset tax.

1. Intensifying operations of property management:
Intensifying operations of property management with
Apamanshop Group
Aiming to cut costs by the merit of scale as well as toi
improve/stabilize/ t bili occupancy ratest andd strengthen
t
th th
the
ability to lease continuously
2. Flexible term revision and expandingpg campaign:p g
Aiming to catch market trends appropriately as well as
conducting flexible term revisions and campaigns
to get excellent tenants and improve occupancy rates
in its early stage.

2. Reduction of electronic power cost
Conduct regular examinations to remain aware of theeffect of changes by the electrical supply companies;
realization of such changes conducted in someproperties during the previous fiscal period resulted in an
estimated reduction of JPY 2,200,
ths p
per yyear.

3. Direct leasing activities for target companies:
Aiming to improve occupancy rates<Keeping a low level “ratio of facility management fee”>
Ratio of facility management= (PM fee + facility management fee +management expenses) / rental revenue x 100
建物管理比率の推移<Overview of Ratioof facilityy management>
g
8.43%
8.05%
7.87%

7.93%
7.73%

0606

0612

0706

0712

0806

7.71%

0812

7.35%

7.38%

7.34%

0906

0912

1012

(Year/ Month)28

Properties for Seniors
Rising Occupancy Rates in Properties for Seniors
 Expecting demand for rising trend in properties for seniors
 As of the end of December 2010, the average occupancy rate taken from seven properties for seniors has risenb 9.1%
by
9 1% sinceiththe endd off March,Mh 2010.
2010⇒ As Bon Sejour, an operator (tenant) of INV, joined the Benesse Group, there are two benefits that we can
expect. (1) Improvement of creditworthiness (2) Management to secure stable rents (Note)(Note)

Since the rental fees from properties for seniors INV held are fixed every month, the operation risk from these properties is taken by the operator: Bon Sejour Corporation (“Bon Sejour”)

100 0%
100.0%

90.0%

80.0%

Bon Sejour Chitose Funabashi
70.0%

Bon Sejour Yotsugi
Non Sejour Hino
Bon Sejour Musashi Shinjo

60.0%

Bon Sejour Komaki
N S
Non
Sejourj
H
Hadanod
Shib
Shibusawa
Bon Sejour Itami

50.0%

40.0%

Bon Sejour,an operator (tenant) of INV,
Joined the Benesse Groupin March, 2010

30.0%

20.0%

10 0%
10.0%

0.0%
Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Year 2007

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Year 2008

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Year 2009

Jul Aug Sep Oct Nov Dec

Year 201029

Section 5 Material Issues and Activities

30

Material Issues and Recent Activities
Material Issues<Resolving the risk relating to the going concern>
The repayment of the Shinsei Trust Loan: JPY 16.8 billion (the “Securitized Loan”) etc.; a primary factor increasing the risk
relating to the going concern.
Given it is difficult to sell properties that are collaterals of the loans and take out new loans, the Securitized Loan (whichconstitutes JPY 16.8 billion out of INV’s existing borrowings of approximately JPY 42.8 billion as of Feb. 28, 2011) has
become a primary factor increasing the risk relating to the going concern since it has become extremely difficult to repay the
Securitized Loan or to further extend the maturity date for the Securitized Loan.
<Obtaining a waiver for an event of default>
The breach of the financial covenant: the “Investment Corporation LTV (Note)” exceeds 60 % for two consecutive terms(Note) the Investment Corporation LTV= Total liabilities / Total assets on INV’s balance sheets for the respective fiscal period

Under each loan agreement in the Term loan (Aozora) and the 24th Individual Credit Loan, if the “Investment
Corporation LTV” exceeds 60%, INV has the obligation to resolve the condition within six months. INV has not achieved
the sales of properties that are collaterals andand, as a result
result, the event of default has occurredoccurred, as determined inaccordance with the fiscal figures at the end of the fiscal period ended December 2010. Also, in this connection, theevent of default has occurred for the Term Loan (D). Further, the acceleration of the term of these loans will be triggered
if such request is made at the instruction of the major lenders of each loan.

R
RecenttA
Activities
ti iti
1. Inviting a new sponsor
Aiming to complement INV’s creditworthiness and ensure a stable financial base by inviting a new powerful sponsor.
2. Sellingg propertiesp pthat are collaterals of the loans
Considering to continue the sales of properties that are collaterals of the loans for reducing the balance of the existing
borrowings.
3. Negotiating to obtain a waiver for an event of default
Continuing negotiation with the lenders of the Term Loan (Aozora), the 24th Individual Credit Loan and the Term Loan (D)for a waiver for an event of default
default.
4. Strengthening and building relationships with existing and new lenders
Construction of a stable financial status through the process of building relationships with new lenders for new loans whilestrengthening relationships with the existing lenders.

31

Negative Goodwill
Gain on Negative Goodwill (JPY 11,843 million)<Accounting Process and Tax Requirement for Payment of Distributions in Excess of 90 %> Accounting Process: “Negative goodwill” is recognized as “Extraordinary Profits” on Income Statement but is not included in
distributable income for the determination of tax requirements for J-REITs (conduit requirement) as it is notsupported by cash (non-cash item). Thus, there is no obligation to distribute such amount and the entire
amount can be allocated to retained earnings.
: Calculation of gain on negative goodwill applicable to the Fiscal Period: Based on allocation averaged over a
period of 100 years
 Formula for J-REIT’s conduit requirement test based on tax requirement for payment of distributions in excessof 90%: Distribution Resource / Distributable Income (Note) >90%
(Note) Distributable Income= Income before Income Taxes- Net Loss brought forward- Gain on Negative Goodwill- Impairment Loss x 90%+
Negative Goodwill after Deductions x Number of Months of said fiscal year/1
year/1,200
200

Utilization of Negative Goodwill<Absorbing the effect of loss from sales of properties on distributions> The effect of loss from sales of p
propertiespduringg the Fiscal Period on distributions is absorbed byy utilizing
g gaing on negativeg
goodwill.
g
Actual total distribution resource for the 15th Fiscal Period : JPY 276 million (per unit: JPY 435) ≒ Income before income
taxes (JPY 4,757 million) - (Gain on negative goodwill (JPY 11,843 million) - Loss from sales of properties (JPY 7,362
million))<Utilizing negative goodwill as a distribution resource for forecasted distribution for the 16th Fiscal Period>
 Regarding forecasted distribution for the 16th Fiscal Period (from January 1, 2011 to June 30, 2011), JPY 123
million out of the earned surplus (JPY 4,480 million), which accrued by the effect of the gain on negative goodwill
recognized on the 15th Fiscal Period, in addition to net income (JPY 3 million), will plan to be reversed as the
additionaldditi
l distribution
di t ib ti
resource.
Forecasted distribution resource for the 16th Fiscal Period (per unit: JPY 200) ≒ Net income (JPY 3 million) + Reversal of
Earned Surplus (JPY 123 million)

32Section 6 Overview of INV

33

Profile of Invincible Investment Corporation(Asset Management) Aiming to invite a new sponsor; to execute INV’s growth strategies (including its restructuring); to use its pipelines effectively.
(Finance) Aiming to realize INV’s growth strategies based on its financial standing as improved by allocating the proceeds from the sales ofproperties to the repayment of borrowings and reducing its interest-bearing debt drastically.
(As of December 31, 2010)

Name

Invincible Investment Corporation(Former name: TGR Investment Inc.)(HP address: http://www.invincible-inv.co.jp/eng/)

Representative

Naoki Shibatsuji, Executive Director

Address

Nihon-bashi Nishikawa Bldg. 1-5-3, Nihon-bashi, Chuo-ku, Tokyo, JAPAN

Asset Manager

Consonant Investment Management Co., Ltd.
(Former name: The LCP REIT Advisors Co., Ltd.)

Listing date

May 17, 2004
(Absorbed LCP Investment Corporation as of February 1, 2010)

Accounting
g Period

June / December(However, the first accounting period (15th Fiscal Period) after the Merger is ended only in December )Asset Value (Note )As of February 1, 2010 (Effective Date of the Merger): JPY 110.6 bn (Number of properties: 104),
As of December 31, 2010: JPY 70.5 bn (Number of properties: 55)

Net Assets

As of February 1,
1 2010 (Effective Date of the Merger): JPY 37
37.4
4 bn (Negative Goodwill: JPY11
JPY11.88 bn),bn)
As of December 31, 2010: JPY 30.1 bn (Negative Goodwill: JPY4.4 bn)

Issued investment
units636,695 units(As of February 1, 2010, the investment unit split was implemented by splitting at a ratio of 5
investment units per 1 unit of TGR and allocating and issuing 4 units of TGR after the investment unit
split per 1 unit of LCP)

Distribution Per Unit

Forecasted Distribution Per Unit for the 16th Fiscal Period Ending June 2011: JPY 200(Note ) “Asset Value” is based on the acquisition price of the properties under INV’s management.

34

Basic Policy~Focusing on Residences, Greater Tokyo Area~

Invincible Investment
Corporation
Aiming to guarantee sound growth of its
assets and secure stable profits overthe medium and long term
Area <focusing on the Greater Tokyo Area>

Property Type <focusing on residences>: Total assets of properties in the Greater Tokyo Area (Tokyo(Tokyo,Kanagawa, Chiba and Saitama Prefectures in Japan) shall be
70% or above of the total properties INV holds.
: Total assets of properties in the Main Provincial Cities shall beless than 30% of the total properties INV holds.
However, total assets for one area shall not exceed 15%.

: Total assets of residences shall be 50% or above of the total
properties INV holds.
: Total assets of other types of properties such as office buildings,
commercial facilities, hotels, properties for seniors and pay-bythe-hour parking lots shall be less than 50% of the total properties
INV holds.

Term of holdings<medium and long-term holdings in principle>: In principle, INV shall conduct asset management with theview of medium and long-termlong term holdings of its properties andaim to guarantee sound growth of its asset value.
:There are some cases to sell the properties after taking into
consideration the strategic reasons and the factors of thestructure of its portfolio, etc.

Property Size <diversifying investment target>: In principal, investment amount per property shall be threehundred million or above.
: Ratio of the investment amount in one property to the investment
amount of the total portfolio (including such acquired property),
shall not exceed 40%.

35

Profile of Asset Manager
We will never forget our mission to provide stable medium and long-term cash flow to our investors and to conduct asset
management by always remaining faithful to the foundation of our business, “asset finance”.
(As of the date of this document)

NameConsonant Investment Management Co., Ltd. (CSNT)(Former name: The LCP REIT Advisors Co., Ltd.)

Representative

Naoki Shibatsuji, CEO & President

Address

Nihon-bashi Nishikawa Bldg. 1-5-3, Nihon-bashi, Chuo-ku, Tokyo, JAPAN

CapitalJPY 430 million

Establishment

March, 2004

No. of Executives &Employees

19 persons

Stockholders

The LCP Group L.P. (Note)
Kyokuto Securities Co.,Ltd.
NISSHIN FUDOSAN Co.,Ltd.
YAHAGI CONSTRUCTION Co.,Ltd.
Co LtdANABUKI KOSAN INC.
Suncity Co.,Ltd.
Big Co.,Ltd.
T t l
Total

5,596 stocks
1,104 stocks
608 stocks
608 stocks
228 stocks
228 stocks
228 stocks

65.07 %
12.84 %
7.07 %
7 07 %
7.07
2.65 %
2.65 %
2.65 %

8 600 stocks
8,600
t k

100 00 %100.00(Note) As of September 3, 2010, ZECS Principal Investment Co., Ltd. and KITA CONSTRUCTION CO., LTD. transferred a total of 912 stocks of CSNT (ZECS Principal Investment Co.,
Ltd.: 608 stocks, KITA CONSTRUCTION CO., LTD.: 304 stocks) and, as of February 8, 2011, Soken Co., Ltd. transferred a total of 304 stocks of CSNT, to The LCP Group L.P.,
the largest stockholder of CSNT.

36

Reorganization of Asset Manager
Details and purpose of reorganization<Details>
Integration of two departments:
The “Planning
Planning department
department” and the “Finance
Finance department
department” were combined and became the “Planning
Planning and financedepartment”.
Consequently, the organization of the asset manager consists of two departments: one is the “Asset management
department” and the other is the “Planning and finance department” (please refer to “Structure of organization” below).
<Purpose><P>
To make the internal control system more efficient:
The asset manager plans to make the internal control system more efficient through the establishment of smooth andeffective operation of the business and appropriate placement of employees in connection with the streamlining of its
organization. (Ref.) Number of executives and employees: 31 persons → 19 persons

Structure of organization<Before change><After change>(as of Feb
Feb. 1
1, 2011)

Shareholders
Meeting

Shareholders
Meeting

Statutory
Auditor

Statutory
AuditorBoard ofDirectors

Board ofDirectors

Compliance Officer

Compliance Officer

President/CEO
Investment
Committee

AssetManagement
Department

Finance
Department

President/CEO

Compliance Committee

Investment
Committee

Compliance Committee

Planning
Department

Asset
Management
Department

Planning& Finance
Department

37

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)38

Appendix

(Appendix) Performance by Properties in the 15th Fiscal Period(unit:JPY ths)
ＮＯＩ(①－②+③)

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

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

42,09957,873

4.6

5.3

39,57560,806

4.9

5.4

8,660

33,79642,456

4.8

4.8

7,973

11,64135,046

46,687

4.4

4.7

11,403

17,85243,30061,152

4.1

5.2

4,638

13,59244,046

57,638

4.0

5.0

483

2,798

11,95843,32055,278

5.1

5.6

5,164

329

2,089

11,84342,98354,827

5.2

5.2

9,824

3,242

244

4,683

10,71037,552

48,2634.7

5.0

17,170

410

3,451

322

2,027

10,95836,06947,028

5.2

5.3

1,631

21,381

6,812

2,073

219

2,081

10,193

28,95339,146

4.7

5.9

46,5502,448

19,288

6,744

2,592

224

2,166

7,559

29,71037,2704.7

5.7

44,18841,302

2,886

17,896

5,234

2,245

239

2,907

7,270

26,29233,562

5.0

5.3

A39 Shibuya Honmachi Mansion

35,75933,938

1,821

13,457

4,639

1,856

199

3,216

3,545

22,301

25,846

4.0

4.4

A40 City Heights Kinuta

33,33032,0891,240

12,899

3,559

1,881

219

4,015

3,223

20,43023,654

3.7

5.0

A41 Acseeds Tower Kawaguchi Namiki

49,00443,6585,346

26,268

7,893

2,447

208

5,641

10,07722,73632,813

5.3

5.3

A42 Capital Heights Kagurazaka

38,13436,517

1,616

15,811

5,821

2,230

327

3,602

3,829

22,322

26,152

4.3

4.9

A43 College Square Machida

36,53636,536-

12,642

1,161

2,073

263

4,176

4,966

23,893

28,860

4.9

5.6

A44 Belair Meguro

33,78630,6283,158

15,263

5,181

1,732

160

3,816

4,371

18,52322,8943.9

4.2

A45 Wacore Tsunashima Ⅰ

38,97237,533

1,439

20,115

6,400

1,920

179

3,523

8,092

18,857

26,9494.7

5.3

A46 Foros Nakamurabashi

35,10332,8992,203

19,982

5,630

2,119

224

3,841

8,166

15,12023,2874.1

4.4

A47 Growth Maison Kaijin

42,05737,6004,456

36,015

13,616

4,398

428

7,606

9,965

6,041

16,0072.9

3.7

A48 College Square Machiya

29,412

29,412-

11,375

263

1,834

191

2,023

7,062

18,03625,0994.9

5.1

A51 City House Tokyo Shinbashi

165,609155,268

10,34068,28028,608

7,897

155

8,414

23,203

97,328120,532

5.2

5.3

A52 Winbell Kagurazaka

187,687

170,140

17,54667,527

21,143

10,136285

8,451

27,509120,160

147,669

5.0

4.9

A53 Nishiwaseda Cresent Mansion

130,488

121,5128,976

43,593

20,839

5,540

220

6,168

10,82386,894

97,7185.7

5.7

A54 Lexington Square Akebonobashi

83,95479,6094,344

35,713

10,803

3,441

110

5,921

15,43648,241

63,677

4.8

4.9

A56 Casa Eremitaggio

63,332

57,9095,423

27,524

6,461

2,879

95

1,980

16,10735,80751,9155.3

5.6

A59 Towa City Coop Shin-otsukaⅡ

62,29360,4201,873

24,442

9,746

2,224

81

3,710

8,680

37,851

46,532

5.9

5.8

A61 Bichsel Musashiseki

44,28943,392896

16,295

6,575

1,843

73

3,147

4,656

27,99332,6496.2

6.3

A62 Lexel Mansion Ueno Matsugaya

59,51753,8985,619

26,790

7,708

2,075

111

2,316

14,57732,72747,3055.3

5.3

A63 Towa City Coop Sengencho

107,658

101,138

6,520

59,451

32,084

4,894

172

6,289

16,00948,20764,217

6.3

6.4

A64 Royal Park Omachi

40,69835,132

5,565

22,606

9,252

3,525

107

2,042

7,678

18,091

25,7706.8

7.0

A65 Lexington Square Haginomachi

31,48527,9793,505

14,927

4,088

2,518

71

2,314

5,933

16,55822,491

7.4

7.4

A66 Visconti Kakuozan

21,782

19,251

2,531

12,100

5,379

1,522

35

1,931

3,230

9,682

12,912

5.5

5.8

A71 Lexington Square Daitabashi

57,34055,2782,061

25,043

5,589

2,146

71

2,998

14,23632,296

46,533

5.2

5.3

A72 Lexington Square Honjo-Azumabashi

32,001

31,360641

14,830

3,208

1,310

51

1,567

8,692

17,17025,863

5.5

5.6

A73 AMS TOWER Minami 6-Jo

90,392

77,762

12,63063,54618,3206,035

222

13,62825,34026,84652,186

4.8

5.3

A75 Spacia Ebisu

329,860

302,106

27,753

136,310

26,70813,877496

28,616

66,611

193,550

260,161

4.1

4.2

2,758,144

2,550,254

207,889

1,237,723

390,446

144,325

9,130

202,545491,274

1,520,420

2,011,695

4.8

5.1

RentalRevenues ①

Rents andCommonExpenses

Facilities
Management
Fees

Taxes and
Other Public
Charges

Insurance
Expenses

A26 Nisshin Palacestage Daitabashi

84,11777,086

7,031

A27 Nisshin Palacestage Higashi-Nagasaki

92,23981,874

10,36442,01814,765

3,123

328

8,026

15,774

52,663

18,222

5,600

572

7,038

21,230A28 Growth Maison Gotanda

54,72553,544

1,181

20,929

5,381

2,849

292

3,745

A29 Growth Maison Kameido

66,344

A30 Emerald House

94,20462,875

3,468

31,298

7,694

3,641

347

76,99817,20550,904

15,6775,551

419

A31 Harmonie Ochanomizu

77,702

71,263

6,438

33,656

11,1803,906

337

A32 Suncrest Shakujii Koen

74,427

67,272

7,155

31,107

9,351

6,515

A33 Growth Maison Shin Yokohama

70,86865,9304,938

27,885

8,457

A34 Belle Face Ueno Okachimachi

66,25860,635

5,623

28,706

A35 Grand Rire Kameido

53,23953,239-A36 Growth Maison Ikebukuro

50,334

48,702

A37 Growth Maison Yoga

48,998

A38 Route Tachikawa

No.

Property Name

Subtotal of Residences
B8 Kindai Kagaku Sha Building
B9 Shinjuku Island

77,907(Note 3)68,652(Note 3)

Property
Other Income
Related
Expenses ②9,254(Note 3)49,379(Note 3)

17,263(Note 3)9,249
(Note 3)

Other
Expenses

417(Note 3)

Depreciation
Expenses ③

6,158(Note 3)

16,290(Note 3)①－②

28,527(Note 3)44,818(Note 3)

3.4

4.5

0.8

1.1

B13 New Edobashi Building

422,195

393,700

28,495111,989

46,11722,854395

6,143

36,477

310,206

346,683

5.1

5.6

B14 Lexington Plaza Nishigotanda

236,979

203,708

33,270149,20751,477

18,841363

8,281

70,24387,772

158,015

3.5

3.7

B15 Cross Square NAKANO

62,30851,585

10,72329,48912,834

6,184

125

3,823

6,520

32,81939,340

4.1

4.2

B16 Ohki Aoba Building

80,25565,712

14,54354,991

22,359

8,552

152

1,571

22,35425,26447,6196.4

7.2

B17 Lexington Plaza Hachiman

299,721235,064

64,656

148,152

80,79524,718305

7,634

34,699151,568

186,267

6.2

6.4

267,129

267,129-

173,208

105,289

14,385385

1,353

51,79593,921

145,716

6.9

6.9

Subtotal of Offices etc.

1,470,249

1,307,847

162,401

738,005

347,915

110,870

2,364

34,967

241,887

732,243974,1314.9

5.3

C1 Stop Parking Kanda-Sudacho

4,887

4,887

-

900

-

565

-

307

26

3,986

4,013

4.1

4.4

C21 Bon Sejour Chitose Funabashi

43,56541,225

2,340

9,561

409

2,830

100

-

6,220

34,00440,224

6.4

6.0

C22 Bon Sejour Yotsugi

41,44841,083

364

8,389

403

1,694

85

-

6,205

33,05839,264

6.6

6.3

C23 Bon Sejour Hino

39,35938,989

370

7,073

383

1,896

81

-

4,711

32,28636,9987.0

6.3

C24 Bon Sejour Musashi-Shinjo

32,62132,335

286

5,595

299

1,467

70

-

3,758

27,02630,784

6.9

6.2

C25 Bon Sejour Komaki

90,16789,014

1,152

22,745

377

7,707

345

-

14,31567,422

81,7378.5

8.4

C26 Bon Sejour Hadano Shibusawa

47,11445,905

1,209

14,043

400

3,006

146

-

10,49033,07043,561

7.0

7.7

C27 Bon Sejour Itami

32,37931,937

441

8,896

276

2,114

96

-

6,409

23,48329,892

6.8

7.5

Subtotal of Parking lots etc.

331,543

325,378

6,165

77,2052,549

21,283926

307

52,138254,338

306,476

7.0

6.9

Total

4,559,937

4,183,480

376,456

2,052,934

740,911

276,479

12,421

237,821785,300

2,507,002

3,292,303

5.0

5.3

B18 Loc Town Sukagawa

1/4

(Appendix) Performance by Properties in the 15th Fiscal Period(unit:JPY ths)
No.

Property Name

RentalRevenues ①

Rents andCommonExpenses

Property
Other Income
Related
Expenses ②

Facilities
Management
Fees

Taxes and
Other Public
Charges

Insurance
Expenses

Other
Expenses

Depreciation
Expenses ③

ＮＯＩ(①－②+③)①－②

A4 Park Villa Yakumo

25,481

22,5592,922

14,300

5,055

3,808

109

1,115

4,211

11,181

A6 J-stage Wakabayashi

11,551

10,536

1,014

7,336

2,888

1,286

80

751

2,330

4,214

15,3936,544

A14 Habitation Claire

26,627

23,8272,800

15,191

3,452

3,191

236

2,068

6,242

11,435

17,678A15 Court Core Yurigaoka

7,755

7,680

75

4,842

1,057

641

82

797

2,264

2,912

5,176

A17 Comfort Naka Meguro

12,097

10,904

1,192

22,082

14,286

1,936

127

1,572

4,159

-9,984-5,825

A18 Growth Maison Waseda Tsurumaki

12,29012,136154

10,328

3,879

1,054

75

880

4,439

1,961

6,401

A19 Growth Maison Ginza

7,309

6,685

623

6,918

1,909

826

60

1,220

2,902

390

3,293

A20 Claire Maison

12,302

11,439

862

7,044

2,613

1,486

77

1,129

1,737

5,258

6,996

A21 Inage Daiei Mansion

12,438

11,250

1,187

8,991

2,135

1,740

196

1,415

3,503

3,447

6,951

A23 Fine Court Tateishi

10,332

9,129

1,203

7,521

2,548

1,173

68

1,105

2,626

2,811

5,437

A49 Century Toyabe

5,668

5,391

277

10,639

6,381

850

49

495

2,862

-4,970-2,107

A50 Unifort Megro-Nakacho

20,545

19,606938

10,876

2,784

1,626

159

2,141

4,163

9,669

13,832

A55 Montserrat Yotsuya

3,751

3,735

15

3,185

810

1,591

6

363

413

566

979

A57 Lexington Square Shimokitazawa

31,51728,293

3,224

11,808

4,629

1,987

39

1,039

4,113

19,70923,822

A58 Homest Ikejiri

5,660

5,047

612

4,729

1,134

2,552

13

229

799

930

1,730

A60 Towa City Coop Asukayama-Koen

2,868

2,708

159

3,669

484

2,398

7

356

421

-801

-379

A67 Lexington Square Kitahorie

6,616

6,456

160

3,648

501

1,687

11

183

1,263

2,967

4,231

A68 Lexington Square Shinmachi

4,335

3,811

524

3,213

796

1,264

8

174

969

1,122

2,091

A69 Luna Court Tsukamoto

5,566

4,934

632

5,395

999

2,715

8

331

1,339

171

1,511

A70 Lexington Square Fushimi

89,703

81,4888,215

37,837

10,343

7,575

154

4,300

15,46351,866

67,329

A74 Lexington Square Shirokane Takanawa

55,904

53,1182,786

33,532

6,904

12,73272

3,215

10,606

22,372

32,978

A76 The Palms Yoyogi Uehara Cosmo Terrace

13,23911,421

1,818

9,851

1,579

4,447

14

1,764

2,045

3,388

5,434

A77 Sun Terrace Yoyogi Uehara

12,753

12,008

744

7,029

825

3,856

15

325

2,006

5,723

7,729

A78 Lexington Square Shinjuku Gyoen

11,128

10,524

604

7,029

1,040

3,490

12

711

1,773

4,098

5,872

A79 BIG TOWER Minami 3-Jo

84,722

76,2908,432

47,893

11,673

14,336245

5,891

15,74636,82852,575492,170

450,986

41,183304,896

90,71480,258

1,935

33,581

98,406

187,273285,680

61,05756,0095,048

60,776

13,87011,743388

1,905

32,869281

Subtotal of Residences
B3 Nihonbashi 2nd Building
B6 Imperial Higashi Kurume D
B10 Baysite Court Yokohama
B11 Yakuodo Hirosaki Yasuhara(Note 3)24,329(Note 3)(Note 3)(Note 3)19,084(Note 3)(Note 3)

5,244
(Note 3)(Note 3)

15,624(Note 3)(Note 3)

7,073
(Note 3)(Note 3)

1,663
(Note 3)(Note 3)52
(Note 3)(Note 3)

1,482
(Note 3)(Note 3)

5,352
(Note 3)33,150(Note 3)8,704
(Note 3)

14,057(Note 3)B12 Kokura Kosan 7th / 17th /20th

72,29064,753

7,537

55,401

15,18815,142324

2,234

22,511

16,88939,400Subtotal of Offices etc.

174,147

156,317

17,829141,347

37,90331,186838

6,955

64,46332,80097,264

750

750

-

596

-

588

-

0

7

153

160

C3 Stop Parking Tokuyama-eki-mae

4,078

4,078

-

2,676

-

2,645

-

14

16

1,402

1,419

C4 Kokura-Kosan East Parking

21,744

21,744

-

7,769

360

4,688

322

32

2,366

13,974

16,341

C5 Stop Cycle Shin-Koiwa 1st

1,867

1,867

-

258

-

225

-

4

28

1,609

1,637

C6 Stop Cycle Shin-Koiwa 2nd

1,845

1,845

-

254

-

228

-

4

22

1,591

1,613

C7 Stop Parking Hiratsuka-Beniyacho

1,395

1,395

-

171

-

142

-

3

24

1,224

1,249

C8 Stop Parking Kita-Urawa

875

875

-

137

-

122

-

2

12

738

751

C9 Stop Parking Shin-Matsuda

819

819

-

161

-

144

-

1

15

658

673

C10 Stop Parking Yotsukaido

411

411

-

50

-

40

-

0

9

361

370

C11 PEIT Uchi-Kanda

1,471

1,471

-

1,050

-

1,030

-

15

4

421

425

C12 PEIT Ikegami

1,069

1,069

-

509

-

487

-

17

4

560

564

C13 PEIT Ueno 3-chome 1st

940

940

-

856

-

834

-

13

8

84

92

C14 PEIT Komagata 1st

984

984

-

540

-

518

-

12

9

444

453

C15 PEIT Fukushima Jimbacho 1st

992

992

-

493

-

463

-

0

29

499

528

C16 Stop Parking Kurihama 1st

625

625

-

424

-

405

-

9

10

201

211

C17 Stop Parking Shin-Tokorozawa 1st

544

544

-

376

-

358

-

10

7

167

175

C18 Stop Parking Shin-Tokorozawa 2nd

516

516

-

430

-

424

-

0

5

86

91

C19 PEIT Naka-Gofukumachi 1st

302

302

-

223

-

208

-

11

3

78

82

C20 Lexington Plaza Hiroshima Otemachi

81,23470,463

10,77042,7598,926

18,663133

1,180

13,85538,474

52,330Subtotal of Parking lots etc.

122,469

111,698

10,77059,7389,286

32,218455

1,336

16,44262,73079,173

Total of Properties Sold

788,787

719,00369,783505,982

137,904

143,663

3,228

41,872

179,312282,804

462,117

5,348,724

4,902,483

446,240

2,558,916

878,816

420,143

15,650279,694

964,6122,789,807

3,754,420

C2 Stop Parking Chiba-Chuo

Total including properties sold(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, 2010 to Dec. 31, 2010 (However, the accounting period of the properties that LCP Investment Corporation (LCP) used to hold: from Feb. 1, 2010 to Dec. 31, 2010).
(Note 5) The properties written inred letters above used to be hold by LCP before the merger.
(Note 6) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

2/4

(Appendix) Appraisal Values & Book Value of the 15th Fiscal Period

Appraisal ValueNo.

Property NameBook Valueas of Dec.
2010

(JPY ths)

Cap Rate

As ofAcquisition

As of; Dec. 2009
(TGR)/; Feb. 1, 2010
(LCP)

As of Jun.
2010 (INV)

As of Dec.
2010 (INV)(JPY ths)(JPY ths)(JPY ths)(JPY ths)

Compared toJun. 2010
(INV)

(%)

As of Jun.
2010 (INV)

As of Dec.
2010 (INV)

Changes

(%)

(%)

(%)

A26 Nisshin Palacestage Daitabashi

1,165,120

1,300,000

1,180,000

1,130,000

1,100,000

-2.7

5.4

5.4

0.0

A27 Nisshin Palacestage Higashi-Nagasaki

1,139,079

1,300,000

1,110,000

1,130,000

1,130,000

0.0

5.4

5.4

0.0

A28 Growth Maison Gotanda

877,140

991,000

881,000

875,000

888,000

1.5

5.1

5.0

-0.1

A29 Growth Maison Kameido

1,053,089

1,110,000

960,000

976,000

995,000

1.9

5.2

5.1

-0.1

A30 Emerald House

1,477,828

1,570,000

1,390,000

1,210,000

1,170,000

-3.3

5.3

5.3

0.0

A31 Harmonie Ochanomizu

1,418,537

1,710,000

1,270,000

1,220,000

1,160,000

-4.9

5.1

5.1

0.0

A32 Suncrest Shakujii Koen

1,065,399

1,220,000

960,000

990,000

990,000

0.0

5.2

5.2

0.0

A33 Growth Maison Shin Yokohama

1,033,503

1,110,000

1,050,000

1,030,000

1,050,000

1.9

5.3

5.2

-0.1

A34 Belle Face Ueno Okachimachi

1,020,612

1,100,000

919,000

954,000

975,000

2.2

5.1

5.0

-0.1

A35 Grand Rire Kameido

893,381930,000

857,000

862,000

882,000

2.3

5.2

5.1

-0.1

A36 Growth Maison Ikebukuro812,246

856,000

737,000

763,000

667,000

A37 Growth Maison Yoga

789,407831,000

719,000

717,000

656,000

*

-12.6

5.2

5.1

-0.1

-8.5

5.2

5.1

-0.1

A38 Route Tachikawa

667,644749,000

634,000

638,000

629,000

-1.4

5.4

5.4

0.0

A39 Shibuya Honmachi Mansion

661,185

678,000

613,000

591,000

590,000

-0.2

5.2

5.2

0.0

A40 City Heights Kinuta

648,304

707,000

500,000

477,000

476,000

-0.2

5.3

5.3

0.0

A41 Acseeds Tower Kawaguchi Namiki

606,860

698,000

641,000

620,000

621,000

0.2

6.0

6.0

0.0

A42 Capital Heights Kagurazaka

625,486

647,000

551,000

543,000

539,000

-0.7

5.2

5.2

0.0

A43 College Square Machida583,956

597,000

542,000

518,000

514,000

-0.8

5.8

5.8

0.0
-0.1

A44 Belair Meguro

586,723

608,000

545,000

527,000

544,000

3.2

5.0

4.9

A45 Wacore Tsunashima Ⅰ

567,106

665,000

527,000

512,000

506,000

-1.2

5.5

5.5

0.0

A46 Foros Nakamurabashi

555,637

634,000

502,000

509,000

526,000

3.3

5.2

5.1

-0.1

A47 Growth Maison Kaijin

538,044

603,000

448,000

435,000

429,000

-1.4

5.8

5.8

0.0

A48 College Square Machiya

502,298

521,000

481,000

484,000

494,000

2.1

5.3

5.2

-0.1

A51 City House Tokyo Shinbashi

2,496,796

2,790,000

2,520,000

2,490,000

2,480,000

-0.4

5.6

5.5

-0.1

A52 Winbell Kagurazaka

3,232,490

3,690,000

3,260,000

3,270,000

3,270,000

0.0

5.1

5.1

0.0

A53 Nishiwaseda Cresent Mansion

1,871,098

2,190,000

1,880,000

1,880,000

1,880,000

0.0

5.5

5.5

0.0

A54 Lexington Square Akebonobashi

1,434,563

1,600,000

1,450,000

1,450,000

1,430,000

-1.4

5.4

5.4

0.0

A56 Casa Eremitaggio

1,054,433

1,240,000

1,070,000

1,070,000

1,010,000

-5.6

5.5

5.4

-0.1

A59 Towa City Coop Shin-otsukaⅡ

857,802937,000

866,000

867,000

871,000

0.5

6.0

5.9

-0.1

A61 Bichsel Musashiseki573,493703,000

577,000

570,000

570,000

0.0

5.8

5.8

0.0

A62 Lexel Mansion Ueno Matsugaya

956,426

1,130,000

970,000

972,000

971,000

-0.1

5.5

5.5

0.0

1,096,452

1,240,000

1,110,000

1,110,000

1,090,000

-1.8

6.4

6.4

0.0
0.0

A63 Towa City Coop Sengencho
A64 Royal Park Omachi

412,884

564,000

415,000

401,000

401,000

0.0

7.6

7.6

A65 Lexington Square Haginomachi

324,066

411,000

330,000

332,000

330,000

-0.6

7.3

7.3

0.0

A66 Visconti Kakuozan

251,769

397,000

255,000

244,000

243,000

-0.4

6.1

6.1

0.0

A71 Lexington Square Daitabashi

962,763

1,019,000

977,000

975,000

960,000

-1.5

5.4

5.4

0.0

A72 Lexington Square Honjo-Azumabashi

502,307525,000

511,000

511,000

505,000

-1.2

5.5

5.5

0.0

A73 AMS TOWER Minami 6-Jo

1,154,659

1,400,000

1,180,000

1,130,000

1,070,000

-5.3

6.4

6.4

0.0

A75 Spacia Ebisu

6,944,460

9,140,000

7,010,000

6,920,000

6,740,000

-2.6

5.2

5.1

-0.1

43,415,063

50,111,000

42,398,000

41,903,000

41,352,000

-1.3

-

-

-

1,245,714

1,340,000

1,090,000

1,050,000

987,000

-6.0

5.2

5.2

0.0

Subtotal of Residences
B8 Kindai Kagaku Sha Building
B9 Shinjuku Island
B13 New Edobashi Building

724,905

871,000

727,000

670,000

501,000

7,404,302

8,770,000

7,410,000

7,220,000

6,740,000

*

-25.2

5.4

5.4

0.0

-6.6

4.7

4.7

0.0

B14 Lexington Plaza Nishigotanda

4,875,844

7,160,000

4,880,000

4,760,000

4,690,000

-1.5

5.4

5.4

0.0

B15 Cross Square NAKANO

1,053,479

1,038,000

1,060,000

1,060,000

1,020,000

-3.8

5.8

5.7

-0.1
0.0

795,474

847,000

816,000

725,000

726,000

0.1

6.5

6.5

B17 Lexington Plaza Hachiman

B16 Ohki Aoba Building

3,288,356

4,760,000

3,280,000

3,180,000

3,170,000

-0.3

6.7

6.7

0.0

B18 Loc Town Sukagawa

2,268,204

2,563,000

2,320,000

2,320,000

2,320,000

0.0

7.0

7.0

0.0

Subtotal of Offices etc.

21,656,282

27,349,000

21,583,000

20,985,000

20,154,000

-4.0

-

-

-

C1 Stop Parking Kanda-Sudacho

100,919

100,000

90,60090,60090,600

0.0

4.7

4.7

0.0

C21 Bon Sejour Chitose Funabashi

679,724

791,000

685,000

720,000

735,000

2.1

5.9

5.9

0.0

C22 Bon Sejour Yotsugi

645,794

765,000

652,000

681,000

681,000

0.0

6.2

6.2

0.0

C23 Bon Sejour Hino

569,288

699,000

574,000

641,000

641,000

0.0

6.2

6.2

0.0

C24 Bon Sejour Musashi-Shinjo

482,241

610,000

486,000

543,000

543,000

0.0

6.1

6.1

0.0

1,035,684

1,940,000

1,050,000

1,060,000

1,060,000

0.0

7.6

7.6

0.0

C26 Bon Sejour Hadano Shibusawa

670,509

962,000

681,000

616,000

616,000

0.0

7.0

7.0

0.0

C27 Bon Sejour Itami

473,590748,000

480,000

430,000

433,000

0.7

6.8

6.8

0.0

Subtotal of Parking lots etc.

4,657,752

6,615,000

4,698,600

4,781,600

4,799,600

0.4

-

-

-

Total

69,729,097

84,075,000

68,679,600

67,669,600

66,305,600

-2.0

-

-

-

C25 Bon Sejour Komaki(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 first half of 15th fiscal period (from Jan. 1, 2010 to Jun. 30, 2010) and the reasons of the differences.
: A36 Growth Maison Ikebukuro New fixed rent after April 2011 is estimated to decline by 11.9%.
: B9 Shinjuku Island
New setting rent declines by 11.1% to 18.7% compared to the rent at the previous appraisal.

3/4

(Appendix) Portfolio List

(As of Dec. 31, 2010)
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

21

60

2,681.94

94.4

A28 Growth Maison Gotanda

23 wards

Shinagawa, Tokyo

888

888

Jan. 2006

Jul. 2005

548

1,051.50

100.0

A29 Growth Maison Kameido

23 wards

Koto, Tokyo

1,070

995

Mar. 2006

Oct. 2005

566

1,367.96

93.9

A30 Emerald House

23 wards

Itabashi, Tokyo

1,505

1,170

Aug. 2006

Feb. 1995

15

96

2,152.31

91.1

A31 Harmonie Ochanomizu

23 wards

Bunkyo, Tokyo

1,428

1,160

Aug. 2006

Mar. 1997

13

65

1,748.24

89.6

A32 Suncrest Shakujii Koen

23 wards

Nerima, Tokyo

1,088

990

Aug. 2006

Mar. 1990

20

29

3,029.16

97.1

A33 Growth Maison Shin Yokohama

Surrounding

Yokohama, Kanagawa

1,059

1,050

Aug. 2006

Mar. 2006

4

68

1,858.44

100.0

A34 Belle Face Ueno Okachimachi

23 wards

Taito, Tokyo

1,023

975

Aug. 2006

Feb. 2006

4

64

1,351.11

93.7

A35 Grand Rire Kameido

23 wards

Koto, Tokyo

906

882

Aug. 2006

Mar. 2006

4

72

1,562.26

100.0

A36 Growth Maison Ikebukuro

23 wards

Toshima, Tokyo

825

667

Aug. 2006

Jan. 2006

4

42952.89100.0

A37 Growth Maison Yoga

23 wards

Setagaya, Tokyo

795

656

Aug. 2006

Mar. 2006

4

39

1,015.34

100.0

A38 Route Tachikawa

Surrounding

Tachikawa, Tokyo

676

629

Aug. 2006

Mar. 1997

13

24

1,368.57

74.7

A39 Shibuya Honmachi Mansion

23 wards

Shibuya, Tokyo

651

590

Aug. 2006

Dec. 1986

24

25

1,167.50

84.5

A40 City Heights Kinuta

23 wards

Setagaya, Tokyo

646

476

Aug. 2006

Mar. 1983

27

19

1,235.93

89.2

A41 Acseeds Tower Kawaguchi Namiki

Surrounding

Kawaguchi, Saitama

620

621

Aug. 2006

Feb. 2006

457

1,210.74

89.5

A42 Capital Heights Kagurazaka

23 wards

Shinjuku, Tokyo

604

539

Aug. 2006

May. 1987

23

26

1,126.65

82.6

A43 College Square Machida

Surrounding

Machida, Tokyo

589

514

Aug. 2006

Mar. 1984

26

62

1,047.75

100.0

A44 Belair Meguro

23 wards

Meguro, Tokyo

589

544

Aug. 2006

Oct. 2005

525

557.05

92.3

A45 Wacore Tsunashima Ⅰ

Surrounding

Yokohama, Kanagawa

572

506

Aug. 2006

Feb. 1991

1950

908.9995.8

A46 Foros Nakamurabashi

23 wards

Nerima, Tokyo

566

526

Aug. 2006

Sep. 2001

937

815.76

100.0

A47 Growth Maison Kaijin

Surrounding

Funabashi, Chiba

557

429

Aug. 2006

Oct. 1993

17

34

2,040.27

97.4

A48 College Square Machiya

23 wards

Arakawa, Tokyo

510

494

Aug. 2006

Mar. 2006

4

43871.35100.0

A51 City House Tokyo Shinbashi

23 wards

Minato, Tokyo

2,520

2,480

Feb. 2010

Aug. 2004

6

86

3,364.00

95.7

A52 Winbell Kagurazaka

23 wards

Shinjuku, Tokyo

3,260

3,270

Feb. 2010

Feb. 2004

6

118

4,032.70

93.5

A53 Nishiwaseda Cresent Mansion

23 wards

Shinjuku, Tokyo

1,880

1,880

Feb. 2010

Jul. 1987

23

69

4,310.77

91.2

A54 Lexington Square Akebonobashi

23 wards

Shinjuku, Tokyo

1,450

1,430

Feb. 2010

Dec. 2004

6

88

1,987.88

95.4

A56 Casa Eremitaggio

23 wards

Meguro, Tokyo

1,070

1,010

Feb. 2010

Dec. 2003

7

17

1,197.19

83.0

A59 Towa City Coop Shin-otsukaⅡ

23 wards

Toshima, Tokyo

866

871

Feb. 2010

May. 1993

17

58

1,627.13

93.8

A61 Bichsel Musashiseki

23 wards

Nerima, Tokyo

577

570

Feb. 2010

Feb. 1992

18

70

1,220.24

97.1

A62 Lexel Mansion Ueno Matsugaya

23 wards

Taito, Tokyo

970

971

Feb. 2010

Jan. 2005

529

1,969.45

86.4

A63 Towa City Coop Sengencho

Surrounding

Yokohama, Kanagawa

1,110

1,090

Feb. 2010

Oct. 1992

18

154

3,426.36

85.4

A26 Nisshin Palacestage Daitabashi

93.8

A64 Royal Park Omachi

TohokuSendai, Miyagi

415

401

Feb. 2010

Feb. 1993

17

51

1,929.59

81.5

A65 Lexington Square Haginomachi

TohokuSendai, Miyagi

330

330

Feb. 2010

Aug. 2005

539

1,528.58

97.6

A66 Visconti Kakuozan

Chubu

Nagoya, Aichi

255

243

Feb. 2010

Sep. 2003

7

8

705.7578.3

A71 Lexington Square Daitabashi

23 wards

Suginami, Tokyo

977

960

Feb. 2010

Nov. 2006

443

1,430.64

95.1

A72 Lexington Square Honjo-Azumabashi 23 wards

Sumida, Tokyo

511

505

Feb. 2010

Oct. 2006

4

33

784.74

94.0

A73 AMS TOWER Minami 6-Jo

Hokkaido

Sapporo, Hokkaido

1,180

1,070

Feb. 2010

Feb. 2007

3120

4,460.56

72.5

A75 Spacia Ebisu

23 wards

Shibuya, Tokyo

7,010

6,740

Feb. 2010

Feb. 2003

7

109

7,794.91

88.7

44,04041,352

-

10.4

2,241

74,663.33

90.9

1,301

987

Aug. 2006

19

13

1,451.54

67.2

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

151

526.430.0

B13 New Edobashi Building

23 wards

Chuo, Tokyo

7,410

6,740

Feb. 2010

Nov. 1986

24

95,695.70

63.4

B14 Lexington Plaza Nishigotanda

23 wards

Shinagawa, Tokyo

4,880

4,690

Feb. 2010

Jun. 1993

1711

6,033.58

72.3

B15 Cross Square NAKANO

23 wards

Nakano, Tokyo

1,060

1,020

Feb. 2010

Jan. 1993

17

45

2,125.08

54.7

B16 Ohki Aoba Building

TohokuSendai, Miyagi

816

726

Feb. 2010

Jul. 1997

13

13

2,178.41

100.0

B17 Lexington Plaza Hachiman

TohokuSendai, Miyagi

3,280

3,170

Feb. 2010

Dec. 2005

518

8,419.15

97.3

B18 Loc Town Sukagawa

TohokuSukagawa, Fukushima

2,320

2,320

Feb. 2010

Oct. 2005

5-

18,440.58

100.0

-

16.2

110

44,870.47

86.7

1

81.04

100.0

21,782

20,154C1 Stop Parking Kanda-Sudacho

23 wards

Chiyoda, Tokyo

97

90

Jan. 2007

C21 Bon Sejour Chitose Funabashi

23 wards

Setagaya, Tokyo

685

735

Feb. 2010

Mar. 1988

2242

2,342.17

100.0

C22 Bon Sejour Yotsugi

23 wards

Katsushika, Tokyo

652

681

Feb. 2010

Mar. 1989

21

62

1,962.87

100.0

C23 Bon Sejour Hino

Surrounding

Hino, Tokyo

574

641

Feb. 2010

May. 1990

20

56

1,984.17

100.0

C24 Bon Sejour Musashi-Shinjo

Surrounding

Kawasaki, Kanagawa

486

543

Feb. 2010

Feb. 1985

25

46

1,710.43

100.0

C25 Bon Sejour Komaki

Chubu

Komaki, Aichi

1,050

1,060

Feb. 2010

Mar. 1991

19

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

21

62

2,129.87

100.0

Subtotal of Parking lots etc.

-

-

4,705

4,799

-

-

20.7

492

22,504.83

100.0

Total

-

-

70,52866,305

-

-

12.8

2,843

142,038.63

91.1

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.

4/4