Invincible Investment Corporation
June 2020 Fiscal Period Results(January 1, 2020 to June 30, 2020)
TSE Code : 8963

August 25, 2020

Executive Summary-1◼

March 2020 marked the start of a significant decline in demand for hotels by both domestic and foreign tourists due to the
COVID-19 pandemic◼

Under this unprecedented environment, INV agreed with MyStays Hotel Management Group (MHM) to waive fixed rent
and fund part of the deficit along with other MyStays Hotel owners on a property basis from March through June 2020
• In addition to the fixed rent waiver of ¥3.5 billion in this Fiscal Period, INV supported MHM by paying a total of¥1.35 billion1, bearing property management costs and increasing the amount of the management fees payable to
MHM. INV along with other owners of MHM hotels funded money to their owned hotels, not MHM general
operations

Results forJune 2020
Fiscal Period

Domestic hotel
portfolio• INV secured medium-to long-term growth opportunities through close collaboration with MHM◼

In June, the portfolio of 73 domestic properties operated by MHM finally recovered to positive GOP from negative GOP
due to a recovery in demand, thorough cost reductions, and endeavors to create new sources of demand◼

1H 2020 DPU is expected to be finalized at ¥69, which is higher than the latest forecast◼

Secured profits of ¥2 billion by selling residential properties at the beginning of the fiscal period◼

INV has ¥7.2 billion in cash on hand and has reduced the plans of capital expenditures to preserve cash and provide
flexibility given the dramatic uncertainty in the current economic and tourism environments◼

In July 2020, INV refinanced bank loans totaling over ¥30 billion at reasonable funding costs, eliminating financial
concerns◼

13 properties were temporarily closed from March (only one remains closed as of today)◼

MHM has been working on thorough cost reductions in the COVID-19 environment and is looking for new revenue
opportunities• Developed proposals for new meeting/banquet plans by implementing measures against 3C’s 2 and restarted

breakfast buffet service• Thorough cost reductions (reduction of labor costs by utilizing employment adjustment subsidies, partial closing of

hotels, renegotiation of outsourcing costs, etc.)• Recovery of lost demand (follow up on cancelled/postponed events)• Efforts to capture new demand (providing telework support environment, takeout/delivery services, etc.)(Note 1) It was originally expected to be up to ¥1.5 billion as announced on May 11, 2020
(Note 2) 3C's means “Closed spaces, Crowded places and Close-contact settings”, which indicates the circumstance where the risk of COVID-19 infection would be high and that the government requests us to avoid. The same hereinafter1

Executive Summary-2

Cayman hotel
portfolio

Residential/
Commercial
Portfolio

Forecast for
December 2020
Fiscal Period◼

Cayman hotels have been closed since late March due to the government-imposed airport closure and are planned toreopen on November 1, 2020 with limited operations◼

Two restaurants have taken measures against 3C’s and resumed operations from June 19 with permission from the
Cayman government◼

The Cayman Annex Development is on hold given the COVID-19 situation and we will evaluate it once there is moreclarity on the recovery from the pandemic◼

Impact of COVID-19 on the residential and commercial sector is minimal. Residential NOI achieved growth of +1.9%
year-on-year, beating the initial forecast of +0.6% year-on-year◼

The weighted average monthly residential rent increase total for new and renewal contracts compared with previous
contracts in 1H 2020 was 1.3%◼

INV is starting to see some signs of a recovery in domestic demand, which lead to positive GOP in July. August is
projected to have 43.6% occupancy and positive GOP, however has not yet recovered to the level to pay the original fixed
rent. September and beyond is hard to forecast given the uncertainty of COVID-19 and what the future policies andactions of the government, companies, and individuals will be◼

Accordingly, the partial waiver of fixed rents has not been determined yet and will be evaluated based on the shape of therecovery which is in line with MLIT guidance to REITs and landlords1 , and which is expected to be concluded by the
middle of September◼

New hotel supply is expected to decline: some previously announced plans may be cancelled, or the stated usage may be
converted to different asset classes, however the specific impact is unknown at this time◼

Residential portfolio is expected to continue stable growth(Note 1) Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the request for considering the waiver of rent against the affiliates related with Real Estate on March 31, 20202

DPU Growth◼

INV marked seven consecutive years of DPU growth through 2019 but COVID-19 has forced a significant reduction in DPU◼

2H DPU remained “To Be Determined” given the uncertainty around COVID-19 and its effects on the economy and hospitality
Global Offering(July 2014)

Global Offering(July 2015)

Global Offering(March 2016)

Domestic Offering(March 2017)

Global Offering(October 2017)

Global Offering(August 2018)

Global Offering(July 2019)

Issued:1,095,507 units
Offering Size:¥24.8 bn

Issued:525,000 units
Offering Size:¥30.3 bn

Issued:482,138 units
Offering Size:¥39.1 bn

Issued:185,000 units
Offering Size:¥8.6 bn

Issued:932,357 units
Offering Size:¥41.0 bn

Issued:955,000 units
Offering Size:¥42.2 bn

Issued:430,000 units
Offering Size:¥24.4 bn

(¥)

3,381

3,500

Upper : December Period
Lower : June Period

3,459

December 2020 FP

3,113
3,000

2,828

TBD
(To Be Determined)

2,663
1,725

2,500

1,683

2,047
2,000

1,647

1,477

1,564

June 2020 FP
1,500

1,306

1,187
(¥)

1,000

500

0

733

501
317
117
200

2012

237

1,186

1,264

1,430

1,656

1,812

100

69

TBD

50

30

860
573

264

2013

0

2014

2015

2016

2017

2018

2019

2020
Forecast
as ofFeb. 20(Note 1) Issued Units: The figures include third-party allotment which was announced in tandem with the public offering(Note 2) Offering Size: Sum of total issue value of each public offering and third party allotment

Forecast
as ofApr. 24

Forecast
as of
May 11

Actual3

Capital Expenditures and Depreciation◼

INV has ¥7.2 billion in cash on hand and has reduced the plan of capital expenditures by ¥1.67 billion to preserve cash and provide flexibility given thedramatic uncertainty in the current economic and tourism environments◼

We carefully examined the maintenance capex budget property by property basis and saved the spending while implementing necessary capex
investments(¥ million)

Depreciation

9,000

8,247

8,019

8,000

6,926

7,000

5,811

6,000

4,452

4,848

5,000

4,108

3,741

4,000

2,262
2,000

1,071
1,000

0

Asset4Size(¥ million)

928

1,112

311

252

385

2013

2014

2015

72,553

117,927

173,815

2,904

667
971

830

2016

2017

266,619

Strategic Capex2

1,323

1,365

759

819

891

2,770

1,877

5,897

Free Cash¥967 per unit

3,585
3,350

3,000

(Note 1)
(Note 2)
(Note 3)(Note 4)

“Excess
FFO1”

353,695

1,297

1,494

2018

2019

448,362

497,979

1,302

2020

2020

Initial Forecast
as of Feb. 20

Revised Forecast
as of Aug. 25

MaintenanceCapex3

511,695

Excess FFO is defined as the amount of depreciation minus maintenance CAPEX. The same shall apply hereafter
Strategic capital investment for renovation including guest rooms, banquet rooms, restaurant and others in order to improve the competitiveness / profitability of the hotels
Capital investment which is required to maintain proper values of properties and capital investment for fixtures and furnishings that are necessary for operating hotels
Based on the acquisition price as of the end of the relevant year. After 2017, includes the amount of preferred equity interest contribution by INV to the JV TMK that holds Sheraton Grande Tokyo Bay Hotel (SGTB). “2020 (Initial Forecast)” and “ 2020 (Revised)” indicates the acquisition price as ofJune 30, 2020. The acquisition price of overseas hotels (i) is the amount of TK investment to the SPC which held the leasehold of properties for "2018" and (ii) is the book value of the hotels as of May 9, 2019 for “2019” and "2020", which are converted into JPY amount via the forward exchange rateof USD 1=JPY 110.45 based on the foreign exchange forward implemented in connection with the original TK investment in the Ca yman SPC (contract thereof was entered into on July 26, 2018 and implemented on September 26, 2018)4

Simulated NOI & Hotel KPIs◼

Hotel KPIs have experienced a sharp downturn due to the impact of COVID-19◼

NOI for residential portfolio has grown +1.9% year-on-year, beating the initial forecast of 0.6% at the beginning of fiscal period, and stable growth isexpected in the December 2020 Fiscal Period

Residential NOI4,5

Hotel KPIs
Jun. 2019
FP
Area

KPI

NOI3,5 (¥ million)(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)2019 (Actual) vs 2020 (Actual and Revised Forecast*)

Variance
vs
2019

vs
InitialForecast(¥ mm)

InitialForecast
as ofFeb. 20〈B〉

Revised
Forecast
as of
May 11〈C〉

10,109

9,577

7,647

7,229

-28.5%-24.5%

2,000

86.8

86.6

50.2

48.1

-44.6%-44.5%

1,000

8,772

8,293

3,835

3,478

-60.4%-58.1%

0

11,572

10,494

192

413-96.4%-96.1%

45,72547,09853,61353,598+17.2%+13.8%

89.3

87.9

37.5

37.5

-58.0%-57.3%

Actual〈A〉

ADR(¥)
Occupancy(%)
Domestic
hotels1
RevPAR(¥)
GOP(¥ million)
ADR(¥)
Occupancy(%)
Overseas
hotels2
RevPAR(¥)
GOP(¥ million)

Jun. 2020
FP

40,83141,418

20,100

Actual〈D〉

20,124〈D/A-1〉 〈D/B-1〉-50.7%-51.4%Jan – Jun

Jul - Dec

Full Year
+1.5%

4,000

3,000

*As of Aug. 25

+1.9%

1,625

1,656

3,278

3,327

2019

2020

+1.1%

1,653

1,670

2020

2019

2020

2019

ActualActualActual Revised
Forecast*

Actual Revised
Forecast*

2019 (Actual) vs 2020 (Initial Forecast)(¥ mm)Jan - Jun

Jul - Dec

Full Year
+0.5%

4,000

2,934

2,962

877

935

-68.1%-68.4%

13,61912,520

1,197

1,588

-88.3%-87.3%

3,278
3,000

Simulated KPI based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity
interest held by INV) owned as of June 30, 2020, 9 hotels with fixed-rent lease agreements are excluded, assuming all properties were owned since the beginning of
2019. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, aresubject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust them due to the timing even if the figures are
based on actual performance. In calculating the GOP, added the 49% of GOP for Sheraton Grande Tokyo Bay Hotel, which means INV’s pro rata portion of the amountof JV TMK’s preferred equity owned by INV. The rent paid for APA Hotel Yokohama‐Kannai, is regarded as GOP of the hotel
Simulated KPI based on 2 overseas hotels owned as of June 30, 2020, assuming both properties were owned since the beginning of 2019. Calculated at the exchange
rate of US$1 to ¥110. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV
owned them, are subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust them due to the timing even if
the figures are based on actual performance
Simulated NOI based on 77 hotel properties; of the 86 hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity interest
held by INV) owned as of June 30, 2020, 9 hotels with fixed-rent lease agreements are excluded, assuming all properties including overseas properties were owned
since the beginning of 2019. The dividends from preferred equity interest of TMK that owns SGTB is applied to NOI of SGTB, assuming these dividends contributed
2019 full year of INV. Calculated at the exchange rate of US$1 to ¥110 for NOI of overseas hotels
Simulated NOI based on the 60 residential properties owned by INV as of June 30, 2020. Excludes one-off insurance-related revenues and expenses, as well as expenses
required to detach trust beneficiary interest from an integrated trust accountFor the period prior to acquisition, using data from seller and adjusted to reflect trust fees and insurance premiums that would have been incurred had the property
been held by INV since the beginning of 2019. Simulated figures are subject to change caused by the adjustments based on differences in accounting treatments, since itis difficult to adjust them due to the timing even if the figures are based on actual performance

2,000

+0.6%
1,625

1,635

3,294

+0.3%
1,653

1,659

1,000

0

2019

2020

2019

2020

2019

2020

ActualInitialForecast

ActualInitialForecast

ActualInitialForecast

5

2020 Preliminary Forecast of Hotel Occupancy for INV Hotel Portfolio◼

INV is starting to see some signs of a recovery in domestic hotel occupancy from June◼

However, September and beyond is hard to forecast given the uncertainty of COVID-19 and what the future policies and actions of the government,
companies, and individuals will be

Change in Hotel Occupancy1

(%)
100
90
80

87.9

88.3

87.8

86.9

87.9

90.2

91.3

88.4

88.2

CY2019

82.0
81.7

74.9

70
60

48.3
50

43.8

40.6

50.5

CY2020

43.6

36.0

40
30

27.0

25.9

Apr

May

20
10
0

Jan

Feb

Mar

Jun

Jul

Aug

Sep

Oct

(Forecast)(Note 1) Based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity interest held by INV) owned as of June 30, 2020, 9 hotels with fixed-rent lease agreements are excluded, assuming all properties were owned since thebeginning of 2019. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, are subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust them due tothe timing even if the figures are based on actual performance6

Operating Revenue Composition
Operating revenue from residential and commercial portfolio comprise 34.1% of total, as operating revenue from hotels declined significantly due to
COVID-19

Portfolio Composition by Operating Revenue1(¥ million)¥16,221 mm
Commercial facilities

June 2019 FP

December 2019 FP

June 2020 FP

3,240

20.0%

1,397

8.4%

890

12.1%

TMK Dividend Amount(SGTB)

827

5.1%

673

4.1%

634

8.6%

Variable Rent

4,307

26.6%

5,332

32.1%

1,255

17.0%

Variable Rent
(minimumguarantee)

3,834

23.6%

6,144

37.0%

1,689

22.9%

1.9％
14.3％

Residential

Management Contract
Revenue2(Cayman hotels)

Hotel

1.9％

¥16,616 mm

20.4％
2.3％

Hotel: Fixed Rent

2.4％

Hotel: Variable Rent
(minimum guarantee)

23.6％

37.0％

¥7,363 mm
4.1％

Fixed Rent

388

2.4%

386

2.3%

381

5.2%
Hotel: Variable Rent

Residential

Commercial properties

Total

3,316

306

16,221

20.4%

1.9%

100.0%

2,374

307

16,616

14.3%

1.9%

100.0%

2,211

301

7,363

26.6％

30.0%

4.1%

100.0%

32.1％
TMK Dividend Amount(SGTB)

5.1％

Management
Contract Revenue(Cayman hotels)

20.0％

5.2％
22.9％

17.0％
4.1％
8.6％
8.4％

Jun 2019 FP(Note 1) Based on the properties owned by INV during each fiscal period respectively. The gain on sale is excluded(Note 2) The figure for June 2019 FP includes the amount of TK dividends INV gained for the fiscal period before INV owns Cayman hotels directly

30.0％

Dec 2019 FP

12.1％

Jun 2020 FP

7

Relevant COVID-19 Events in Japan and Change in Hotel Occupancy◼

Hotel Occupancy marked the start of a significant decline in March and appears to have hit bottom in May◼

However the number of newly infected patients has been increasing since July and the second wave is larger than the first wave

A

Jan. 16First domestic COVID-19 case in Japan

Jan. 27

Suspension of group tours to overseas by Chinese
government

Feb. 13First domestic death from COVID-19 in Japan

Feb. 26

Prime Minister requested for the cancellation,
postponement, or reduction in size of national
sports and cultural events

Change in INV’s Hotel Occupancy1 (Upper) / Number of New COVID-19 Patients in Japan2 (Lower)
A
(%)
100

Feb. 29

TDR and USJ started to be closed

Mar. 11WHO declared COVID-19 outbreak a pandemic

C

Mar. 24

D

Apr. 7

Announcement to postpone Tokyo 2020 Olympic
Games
Declaration of a State of Emergency for Tokyo andsix other prefectures

E

Apr. 16

Declaration of the nationwide State of Emergency

F

May 4

Extension of State of Emergency until May 31

May 14

Lift of State of Emergency for 39 prefectures

May 25

Lifted State of Emergency for remaining prefectures

30

Jun. 2

Triggered “The Tokyo’s Coronavirus Alert”

20

Jun. 11
Jun. 19

Lifted “The Tokyo’s Coronavirus Alert”
Lifted the restriction on cross-prefectural movement

10

Jun. 30

The number of infected people in Japan exceeded
100 for 3 consecutive days

(cases per day)Jul. 1

TDR reopened

1,800

Jul. 6

The number of infected people in Tokyo exceeded
100 for 5 consecutive days

1,600

I

Jul. 10

Announcement of the Go To Travel campaign being
pushed forward to July 22

1,200

J

Jul. 16
Jul. 22

Tokyo is excluded from the Go To Travel campaign
Governor of Tokyo requested to avoid unnecessary
or non-urgent outings

800

Jul. 30

Government of Tokyo requested restaurants, bars
and karaoke parlors to reduce operating hours

Jul. 31 –Aug. 5

The Prefectures of Okinawa, Gifu, Mie, and Aichi
announced a State of Emergency

H

K

C

D

E

F

G

H

I

J

K

CY2019

B

G

B

90
80
70

CY2020605040Dotted line: Daily
Solid line: 7-day moving average

0

1,400

1,000

600
400
200

*The events above are referred to the announcements or news releases by the government, the local government, media, etc.

0Feb. 01Mar. 01

Apr. 01

May. 01(Note 1) Average occupancy based on the MHM’s operating hotels owned by INV as of June 30, 2020
(Note 2) Source: Ministry of Health, Labor and Welfare

Jun. 01

Jul. 01

Aug. 018

Challenges for Developing Projections: Unknown Factors◼

There are no signs of a resolution to the global COVID-19 pandemic, and there are too many critical unknown factors to determine earnings for 2020
2H and thereafter◼

INV believes it is prudent to maintain TBD status for 2020 2H guidance◼

INV is discussing potential revisions to MLPM contracts with MHM for 2020 2H principally based on the recent performance of 73 domestic hotels
operated by MHM◼

INV expects to determine and announce the revisions to MLPM contracts by the middle of September

Number of New COVID-19 Patients Worldwide

Examples of Critical Unknown Factors(cases per day)USA
Other Areas

Newly Confirmed Cases(as of July 31, 2020)

Japanese domestic market✓ When will the 2nd wave of the COVID-19 pandemic end?
✓ When will an efficacious vaccine of COVID-19 become reasonably
available and ease the minds of people to travel?

• Global: 293,236• USA: 65,406✓ What will happen regarding the Go To Travel Campaign to / from
Tokyo? Will there be enough government budget if / when Tokyo is
included in the Campaign?
✓ Will the attitude of people about travel change by the changes ofperceptions against riding airplanes / trains from 3C’s perspective?
Will people limit their travels to the locations they can visit by driving acar?

Relevant COVID-19 Events in USA and Cayman
Jan. 21Mar. 7Mar. 12Mar. 12Mar. 13Mar. 14Mar. 16Mar. 16Mar. 22First COVID-19 case in USA, Washington State
Declaration of a State of Emergency in New York State
Before this date, Declaration of a State of Emergency
in 16 states
First COVID-19 case in Cayman Islands (a death wasannounced on March 14)
Declaration of a National Emergency by President
Trump
Travel restrictions for 26 European countries to USA
Announced Measures to restrict the movement for 15
days (Extended until April 30)
Announced the suspension of all international flights
at Owen Roberts International Airport (ORIA) by the
Cayman Islands Government
Announced the "New York State on PAUSE"(lockdown)

Source: World Health Organization

Mar. 23 Started suspension of all international flights at
ORIA
Apr. 7

Announced the extension of suspension of allinternational flights at ORIA

Apr. 17 After this date, reopened the economy sequentiallyin USA

May. 7

Announced the second extension of suspension of
all international flights at ORIA

Jun. 1

Imposed curfew in 40 US cities

Jun. 7

Lifted the curfew in NYC, Chicago, Philadelphia etc.

Jul. 30

The number of coronavirus deaths exceed 150,000 in
USA

Aug. 8

Announced the reopening of ORIA from October 1
with restrictions*The events above are referred to the announcements or news releases by the U. S. and Cayman authorities, media, etc.

✓ Will the events and sport competitions which were postponed toautumn / winter take place?
✓ When and how will the air flights recover to normal availabilities?

International market✓ When and how will inbound business trips expand?
✓ When and how will inbound tours for leisure resume?
✓ Owens Roberts Airport on Grand Cayman has been closed from March
22 and the expected reopening schedule has been changed a few times.
It is now expected to reopen on October 1, 2020 in a very limited,
controlled approach. INV’s two hotels in Cayman plan to reopen on
November 1, 2020 depending upon return of airlift and visitor responseto the first 30-days of opening under strict conditions.

9Initiatives by MHM to Stimulate Hotel Demand due to COVID-19 (1)MHM, the main operator of INV’s hotel portfolio, is engaged in a variety of initiatives to help recover and promote hotel demand which has drastically eroded due to the
COVID-19 pandemic. The recovery initiatives are necessary due to the unprecedented challenges resulting from COVID-19, as it is unclear how long the pandemic will lastInitiatives to stimulate hotel demand
Efforts to ensure safety for guests (Avoiding the 3C's)

Thorough follow-up of cancelled / postponed events•

Buffet's safe operation•

In response to the government’s request for voluntary restraint, all buffets at
the hotels were discontinued and switched to several individual dishes. Someof the buffets reopened in July under thorough measures to aid in preventing
the transmission of COVID-19•(Before)A detailed manual was formulated for the resumption of the buffet service inorder to provide service safely. Unified measures are being taken by thegroup as a whole

Cancellations of banquets, training sessions, and meetings increased sharply in March. MHM has
been proactively working to recoup the cancelled events by proposing plans to avoid the 3C’s andchanges in the timing•

Due to the perseverance of the individual hotels and corporate sales team, the sales recovery ratecontinues to improve(¥ mm)The Amount of Banquet Cancellations2 and Sales Recovery Rate3
400

25%
Amount of banquet cancellations (¥ mm)

Sales recovery rate (%)
20%

300

15%
200
10%
100

Strengthened disinfection.
Tables are preset withtableware / cutlery

Employees are required towear masks and rubber
gloves, and exchange tongs
every 15 minutes

Intra-restaurant
ventilation (at least once
every 30 minutes) taking
physical distancing into
account

Serving individual dishes
rather than assorted fooditems on large platters

0

In order to capture conference and banquet demand in the Covid-19 environment, MHM
provides special layout plans in order to avoid the 3C's•

MHM’s special layout plans were featured in the Mainichi newspaper and several local
newspapers, which has led to bookings(Case) Hotel MyStays Shin-Osaka Conference Center: In a large conference room that can accommodate up to 322
people in regular school-style, a new special layout of one person per desk (1.5m apart) ensures a physicaldistance (picture not drawn to scale)Special layout to avoid the 3C's
Typical layout

0%

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

(Note 2) Based on a total of 26 MHM hotels that have banquet functions, including 15 hotels owned by INV.
(Note 3) Percentage of banquet sales for which re-execution has been confirmed after cancellation or for which a provisional reservation has been acquired against the amount ofcancellation in each month.

Stimulating domestic demand

Meeting and banquet plans to avoid the 3C's
•

5%

•

Building on the strength of the MHM Group, which operates a diverse portfolio of hotels including
resort and full-service hotels, MHM is promoting the sales of “the MHM Voucher4 Plan” to its
extensive list of corporate clients / individual customers. MHM aims to stimulate demand from its
existing customers by cross-selling these vouchers that provide guests discounts to use a wide
variety of amenities such as resort, dining or spa facilities throughout Japan•

Educational travel such as school excursions were cancelled this spring. MHM has been working tostimulate the demand for autumn travel and onwards by collaborating with travel agencies, as wellas trying to recapture the demand from schools that made direct cancellations•

Many of MHM’s hotels provide single accommodation, a clear advantage in avoiding the 3C's
compared to conventional facilities with Japanese rooms or large rooms that can accommodate five
to seven guests per room. Advocating such strengths has helped MHM succeed in acquiring
demand from customers who originally planned to stay in rooms with large room capacity. From
February 2020 to July 2020, achieved 734 new school trip reservations for 2020
(Note 4) Coupons can be used at any MHM Group Hotels, with discounts which do not limit accommodation dates or hotels. It is expected to encourage the use of a set of
lodging-oriented hotels that do not have a dining business with neighboring sister hotels that provide dining. An example would be for a guest staying at MS Sapporo
Sapporo Park using MSP Sapporo Park for dining, and then using the remaining tickets for lunch at MS Gotanda Station at a later date
(Note 5) The total number of reservations for 8 of the MHM-operated hotels (of which 5 are INV-owned hotels).

10Initiatives by MHM to Stimulate Hotel Demand due to COVID-19 (2)MHM has also been working on creative initiatives to develop a new source of hotel demand, which was not evident prior to COVID-19

Efforts to Capture New Demand
Acceptance of Self-quarantine Customers

Provide a telework environment•

With the increasing demand for telework caused by COVID-19, MHM has anticipated the risein cases where people / corporates would face difficulty securing a comfortable teleworkenvironment at home, such as problems with sufficient working space•

Since March 2020, when the national government strictly regulated arrivals from abroad, MHM
has aggressively targeted corporations with many employees overseas to generate accommodation
demand associated with the 14-day voluntary quarantine period after returning to Japan•To address this issue, MHM has started to provide hotel rooms for day-use (7:00~22:00) or a
special successive stay for teleworking with unlimited Wi-Fi. The day-use plan has been
implemented at 67 MHM hotels nationwide, of which 52 hotels are owned by INV, including
premium brand properties such as Hotel MyStays Premier Akasaka and Hotel MyStays
Premier Hamamatsucho•

Approached approximately 3,000 corporations to capture demand for hotels near airports, as well
as hotels in the Tokyo metropolitan area, such as Yokohama (in total 25 hotels, of which 21 areowned by INV)•

By industry, the largest corporate customer for voluntary quarantine use is shipping crew agencies,
followed by machinery and parts manufacturers, and general trading companies. Demand for self
quarantine of returning overseas expatriates employed by Japanese companies peaked in April,but demand for ship crews continues to emerge from May onward•

Provided guests with information materials related to the COVID-19 environment and rigorously
implemented measures to prevent infections such as requests to restrict movement•

Sold 18,531 room-nights with revenue of ¥168,329 thousand from 75 companies during theperiod from March 2020 to July 2020•

MHM is capturing new demand by providing a comfortable and safe working environment likerental offices※ Usage results
Implementation
periodFrom April 15 to June 30

Total number ofrooms used

22,721 rooms (7.8%1)

Total revenues¥91,351 thousand (6.4%1)

ADR¥4,021

Breakdown of Self-quarantine (100% = ¥168,329 thousand)<By Industry><By Hotel>(Landing page of MHM reservation website during implementation)(Note 1) Percentage of the utilization or the revenues by “Telework Plan” for 67 Hotels that implemented the plan in the period above.

Delivery and Takeout Services••

COVID-19 has increased the frequency of eating at home.
Further, in office districts, there was a lack of restaurants open
for lunch due to the government request for businesssuspension
2

Considering this situation, delivery services and takeout menus
were created and widely distributed in various neighborhoods
by MHM’s directly managed restaurants (4 hotels in the INV
portfolio: MSP Sapporo Park, MS Shin-Osaka CC, MS
Gotanda Station, and MS Matsuyama)•

Actual results of 5,256 cases/ ¥16,116 thousand from April
2020 onwards by July 2020•

In anticipation of continuing demand, MHM intends to expand
the initiatives as one of the pillars of its new business

3

2

2

(Hotel MyStays Premier Sapporo Park pamphlet)(Note 2) Narita: Hotel MyStays Premier Narita; Omori: Hotel MyStays Premier Omori; Haneda: Hotel MyStays Haneda(Note 3) This business is to arrange foreign crews to board large cargo ships and other ships from Japan. These crews arrive in Japan by airplane and stay at hotels until
boarding the ships.

11

Cost Cutting Initiatives by MHM due to the Impact of COVID-19
MyStays is taking aggressive steps to reduce hotel operating expenses by reviewing all operations. Specific measures include temporary hotel closures andthe suspension of non-essential capital expenditures as well as taking government subsidies, cutting payments to service providers, significantly reducing
marketing expenses, utilities and other items

Reducing Operating Expenses

1

2

3

4

Labor Costs

Room Cleaning
Expenses

Various Fixed
Expenses

Management
Members’
Salaries

MHM reduced the labor costs across theportfolio hotels through furloughs andutilization of the government subsidy program
as well as minimization of overtime pay

In response to the low occupancy environment,
MHM renegotiated the minimum room counts
for room cleaning expenses with the cleaning
vendors or internalized the room cleaning
operations. With support from the vendors andinternalization, MHM has materially reduced
the amount of room cleaning expenses
compared to the original contractual payments

MHM also renegotiated various fixed expenses
including building maintenance, public cleaning
services, utilities, telecommunication, marketing
expenses, and other outsourcing services

Senior management members at MHM haveagreed to reduce their monthly salaries by atleast 20% from May

Temporary Hotel Closures of MHM Hotels Owned by INVProperty Name

Closed Date

End Date of
Closing Period

MyCUBE by MYSTAYS
Asakusa Kuramae

March 8August 31(Planned)

Hotel MyStays Kyoto-Shijo

May 1

June 30

Hotel Epinard Nasu

April 28

May 31

Hotel MyStays
Sapporo Station

March 18

July 17

Art Hotel Ishigakijima

April 20

May 31

Hotel That Consolidates
Operations During Close-

Hotel MyStays
Sapporo Aspen-

Hotel MyStays Fuji
Onsen Resort

May 1

June 11

Hotel MyStays
Kanazawa Castle

April 13

June 30

Hotel MyStays PremierKanazawa

Hotel Nord Otaru

March 18

June 30

Hotel Sonia Otaru

Hotel MyStays
Sapporo Susukino

March 18

July 17

Hotel Mystays
Sapporo Nakajima Park

March 18

July 17

Hotel MyStays
Sapporo Nakajima Park
Annex

March 6

July 17

Hotel MyStays Premier
Sapporo Park

12

Marriott’s Operation Strategy – ‘Commitment to Clean’◼

Marriott International launched “Commitment to Clean”, which elevates the global cleanliness standards and hospitality norms at their hotels
worldwide to meet the new health and safety challenges of the Covid-19 Pandemic◼

Each Marriott Hotel, including the Cayman hotels1 and SGTB in INV’s portfolio, is dedicated to rigorous cleanliness standards

Overview of Marriott’s “Commitment to Clean”✓ Marriott Cleanliness Council, consisting of in-house hotel operations and outside
experts on food & beverage hygiene and infection prevention, was formed to redefine
the cleanliness standards

At the Cayman Hotels, Both Tortuga Beach Grill and Bar andSunshine Grill successfully reopened their doors on June 19, incompliance with all COVID-19 prevention regulations andguidelines from government officials✓ Developed 200+ cleaning protocols throughout each step of the guests’ journey andevery physical space in the hotel◆ Touch-less Technology•

Mobile Check-in and Mobile Key along with Mobile Chat and guest requests via Marriott Bonvoy App◆ Promoting Proper Sanitation•

Introducing deeper and more frequent cleaning with extra attention given to high-traffic areas•

Frequent disinfection of high touched areas•

Sanitization kit for guest use

Floor Stickers◆ Physical Distancing•

Signages are available to remind guests to maintain physicaldistancing protocols•

Reduced seating capacities according to the local laws andgovernment regulations•

Setting meals and breaks in spaces reserved for the specific
event

•

Offering a wide variety of hygienic F+B options tailored togroup size, including Grab & Go, canned + bottled
beverages, and plated service•

Redesigning F+B station set-ups to maintain appropriate
distancing

Branded Face Covering

QR Code Menu

Physical Distance Restroom Signs

Sheraton Grande Tokyo Bay Hotel is now working on offering
virtual weddings(Note 1) In reaction to the worldwide spread of COVID-19, the Cayman Islands government closed the Owen Roberts International Airport in Grand Cayman on Sunday March 23, 2020. Accordingly, the Cayman Hotels have been closed since late March and are expected to reopen on November 1, 2020 at the earliest.

13

Update of the Status of Cayman and Annex Development Plan◼

Owens Roberts International Airport on Grand Cayman was closed to air traffic on March 23, 2020 and is expected to reopen in a very limited, phased
capacity starting on October 1, 2020◼

The proposed annex development project has been put on hold while progress on the construction and design drawings have been selectively
completed to ensure post-pandemic continuity of the project

The Cayman Islands has recently Introduced a new tourism plan RB5 (The Road Back to 500,000 Air Arrivals) in response to re-opening
the island for visitors post global pandemic. The plan is the first official recovery plan since the country closing March 23, 2020



Recovery of performance within this year is expected to be slow due to precautions taken by the Cayman government to pre-screen
travelers including a negative COVID 19 test prior to arrival, a 5-day quarantine upon arriving to the island, and monitoring thevisitor’s vitals through a biotech tracking device worn while on the island. In addition, over 80% of guests to Cayman come from the
U.S. where significant COVID 19 activity still exists

Westin and SSR have been closed from March 22 with plans to reopen on November 1, 2020 depending upon return of airlift and visitor
response to the first 30-days of opening under strict conditions

Both resorts are prepared to re-open under extensive new cleaning procedures in accordance with Marriott’s “Commitment to Clean”
to insure guest and employee safety

Tortuga and Sunshine Grill reopened on June 19th to local customers in accordance with island ministry health guidelines. Through thefirst three weeks of operations, Tortuga is averaging 89 and 44 covers per day on the weekends and weekdays, respectively, atapproximately $60 per checkThe planning application has been submitted for the government agency approval and is expected to be heard by the Central Planning
Authority in September 2020. Once approved, INV will be able to move forward with permitting and commencement of construction attheir discretion

14

The Status of New Hotel Development in Japan◼

According to HOTERES survey1, there were plans to develop 678 hotels with a total of 102,286 rooms (as of May 1, 2020), which marks the decline fortwo consecutive surveys since the December 2014 survey◼

The peak of hotel development in Japan is expected to be in 2020 with a decline in new rooms of 54.7% YoY for 2021 compared to 2020, which is thesame trend as the previous survey2◼

INV believes that the momentum of new hotel supply slowed down considerably due to the impact of COVID-19◼

The previously announced plans may be cancelled, or the stated usage may be converted to different asset classes, however the specific impact is
unknown at this time(# of Rooms)
70,000

The Change in the Number of Rooms for New Hotel Development5

The Number of Planned New Hotel Room Supply
Hotel rooms planned to be built3

Hotel rooms built
59,876(Thousand Rooms)
120

60,30960,000106

52,795100

54.7%
reductionfrom peak3

50,000

109

109

114
106

102

92

80

40,00071
30,000Additional
Announced Supply4(completion date notdetermined)

27,34220,000

60

52
45
34

40
29

11,3158,106

10,00010,610

25 26

30
23

35
29

31

25

20
0

2018

2019

2020

2021

2022

2023-

Previous
information2

57,94659,306

17,843

8,164

5,083

Source: HOTERES survey and official website of each hotels

015,174

Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun
2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

Source: HOTERES survey(Note 1) Conducted twice a year in June and December(Note 2) Available information as of December 6, 2019
(Note 3) Based on available information as of May 1, 2020. Newly built hotels with more than 40 rooms are included(Note 4) Indicates the number of announced hotel rooms planned to be built but whose completion date is not yet determined as of May 1, 2020
(Note 5) Based on the plans confirmed as of each survey by HOTERES(Note 6) Hotel rooms planned to be built shown above is based on the plans of surveyed hotel developers as of May 1, 2020. It is possible that additional development plans have or will be announced subsequent to May 1, 2020 that result in new hotel supply after 2020 being larger than the supply shown above. Accordingly, actual
new hotel supply may differ materially from the figures shown above

15

Residential Rent Increase Initiative
INV continues to proactively manage the residential portfolio, seeking higher rents where possible, and engaging with property managers todrive higher rents
Change in Rent for New Contracts1
Increase

Flat

Change in Rent for Renewal Contracts1

Decrease

100%

100%

20.5%

23.4%

23.6%

80%

22.3%
60%

19.7%

25.4%

28.0%
17.0%

31.3%
17.2%

31.0%
20.8%

29.6%

56.8%

20%
0%

18.4%

Occupancy

51.0%

55.0%

51.4%

48.2%

52.0%

2014

2015

2016

2017

2018

2019

2020
1H

649

943

783

1,030

1,015

898

402

94.0%

94.7%

95.9%

95.0%

95.5%

96.2%

96.2%

1.01

1.23

1.15

1.02

0.74

0.64

0.47

No. of
New Contracts
2

Net Leasing Cost
(No. of months)3

Increase

0.0%

45.3%

46.2%

54.7%

53.8%

0.0%

0.1%

0.0%

0.0%

61.8%

60.9%

60.8%

58.8%

53.4%

38.1%

39.1%

39.1%

41.2%

46.6%

2014

2015

2016

2017

2018

2019

2020
1H

872

1,209

1,126

1,337

1,253

1,167

712

84.7%

85.4%

83.7%

82.8%

82.5%

78.9%

80.7%

1.5 1.6 1.6

1.6

60%

20%
0%

No. ofRenewals
Renewal
Rate4

8.8%

10.3%

9.7%

Flat
12.2%

Average Rent Increase / Decrease5

Decrease
14.0%

13.5%

10.7%

45.0%

42.8%

60%

46.3%

33.0%

33.2%

42.3%

(%)
3.5

40.8%

1.5

40%

46.9%

43.9%

54.8%

52.7%

44.3%

48.6%

RenewalTotal
3.3 3.0

2.8

2.7
2.4

2.5
2.0

46.2%

New Lease

3.0

80%

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

0.0%

0.1%

Change in Rent for All Contracts10%

Decrease

40%

57.2%

20%

Flat

80%

40%

100%

Increase

2.0

1.9
1.3

1.6
1.1

1.3 1.2

1.3

1.2 1.2 1.2
0.7

1.0
0.5

2014

2015

2016

2017

2018

2019

2020
1H

0.0

2014

Based on the properties owned by INV for the relevant period. The properties INV acquired / disposed during the period are included only for the term when owned by INV
Occupancy is calculated by dividing the sum of total residential leased area by the sum of total residential leasable area at the end of each month of each year
Net Leasing Cost (Multiple of Monthly Rent) = Advertising Expenses (Multiple of Monthly Rent) + Free Rent (Multiple of Monthly Rent) – Key Money (Multiple of Monthly Rent)
Renewal rate is calculated by “Number of Renewals during the Period” ÷ ”Number of Cases Targeted for Renewal during the Period”
Weighted average of monthly rent increase or decrease (%) of new or renewal contracts, or the total of both, compared with previous contracts of properties owned at the end of period

2015

2016

2017

2018

2019

2020
1H

16

Financial Condition◼

As it is difficult to expect that the outbreak of COVID-19 will come to an end soon, in the short term INV will implement initiatives that restrict anincrease in interest payments on refinancing of existing borrowings and ensure refinancing◼

Over the medium to long term, INV will implement financial strategies such as reduction of borrowing costs, extension of average interest-bearing
debt repayment period, diversification of loan maturity dates and financing measures
LTV (Appraisal Value Base)1 and Weighted Average Interest Rate2

Lender Formation (as of August 25, 2020)

(%)
55

53.1

(%)

LTV (left)

53.1

2.0

Average Interest rate (right)
49.0

50

1.48

(Total)45.1

45¥263,468
mm

1.07

42.2

1.06

40

42.8

43.4

0.48

0.50

0.50

Jun
2016

Dec
2016

Jun
2017

44.5

1.5

46.8

46.6
44.6

44.1

44.2

0.51

0.52

0.53

0.53

0.55

0.54

Dec
2017

Jun
2018

Dec
2018

Jun
2019

Dec
2019

Jun
2020

1.0

0.5

0.63

35

0.0

Jun
2014

Dec
2014

Jun
2015

Dec
2015

DSCR
Mizuho Bank

19.7%

Shizuoka Bank

0.9%

MUFG

15.2%

Nishi-Nippon City Bank

0.8%

SMBC

15.0%

Hiroshima Bank

0.6%

(X)

SMTB

13.8%

Kagawa Bank

0.4%

25.0

Citibank

6.3%

Kiraboshi Bank

0.4%

Shinsei Bank

5.3%

3.2%

Momiji Bank
Yamaguchi Bank

0.4%

DBJ
Resona Bank

2.8%

Chukyo Bank

0.4%

Aeon Bank

2.6%

Towa Bank

0.2%

Dai-ichi Life Insurance

1.5%

Tochigi Bank

0.2%

Fukuoka Bank

1.5%

Kiyo Bank

0.2%

Daisan Bank

1.3%

Gunma Bank

0.1%

Aozora Bank

1.3%

Ikeda Sensyu Bank

0.1%

Nomura TB

1.3%

REIT Bond

3.1%

Tokyo Star Bank

1.1%

と

0.4%

DSCR (based on Portfolio)3
DSCR (excluding Hotel Variable Rent)4
22.9

13.0

15.0

9.9
10.0

6.1

0.0

20.2

19.0

20.0

5.0

22.2

10.0

13.7

10.8

12.5

21.4

13.1

20.7

12.8

22.2

13.5

22.0

20.8

14.8
11.3

6.2

4.7

3.6 3.5

Jun
2014

1.8
Dec
2014

Jun
2015

Dec
2015

Jun
2016

Dec
2016

Jun
2017

Dec
2017

Jun
2018

Dec
2018

Jun
2019

Dec
2019

Jun
2020

(Note 1) Calculated by the following formula: (Interest-bearing debts at the end of the relevant fiscal period, excluding short-term consumption tax loan) / (Total appraisal value as of the end of the same period). For the preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset, the acquisition price (INV’s
investment amount) of such preferred equity interest is deemed as the appraisal value and included. For the Overseas Real Estate TK Interest the underlying assets of which are “The Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort”, the acquisition price (INV’s TK investment amount) of such TK interest is deemed as
the appraisal value and included regarding the calculation for “Dec. 2018”. Regarding “Jun. 2019” onward, calculation is based on the appraisal value as of the end of each fiscal period. USD is converted into JPY amount via the forward exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward contract entered into on July 26, 2018
(Note 2) Calculated by the following formula: (Total loan amount outstanding at the relevant time multiplied by applicable interest rate at the relevant time for each loans) / (The loan amount outstanding at the end of each fiscal period)(Note 3) DSCR is calculated by dividing (i) by (ii) for the relevant period; (i) operating income, as adjusted for depreciation expenses from property rental business and any loss (gain) on sales of property (ii) scheduled prepayments of loans payable, interest expenses s, interest expenses on investment corporation bonds and the amount of redemption of bond.
Excluded the temporal increase of income due to the change of investment structure regarding overseas assets for the calculation of June 2019 fiscal period(Note 4) DSCR (excluding hotel variable rent) is in the same manner as DSCR, except for excluding both hotel variable rent from operating income and management contract revenue

17

ESG Initiatives (Updates)
Initiatives for Environment◼ Renovation Progress for Energy Conservation and CO2 Reduction(Figures in parentheses are year-on-year changes)✓ Introduction of whole or part of LED lighting: 80% of portfolio (+0pt)✓ Introduction of whole or part of the water-saving type toilet: 10 properties(+1 property)✓ Installation of water-saving showers: 91% of domestic hotel portfolio (+5 pts)
✓ Installation of gas generation1, inverters, etc.: 31 hotels (+2 hotels)◼ Reducing CO2 Emissions from Food Transportation at Hotels(Hotel Epinard Nasu)
Contributing to CO2 reductions by cooperating with farmers and dairy farmers
in Tochigi Prefecture to procure fresh foodstuffs

Asset Management Company Initiatives for Employees◼ Regular performance appraisals and feedback processes
All employees set an annual goal after an interview with their superior. We conductpersonnel evaluation at the end of the fiscal period after an interview with employees
to look back on their performance and provide feedback on the evaluation results. The
result of those appraisals are reflected to employees’ compensation. We haveestablished a transparent personnel evaluation system through regular measurement
and feedback processes.

◼ Respect for human rights and promotion of diversity
We accepts differences in diverse professional abilities and values as well as paying
respect to positive heterogeneity in order to maximize the abilities of each individual
employee. We aspire to achieve sustainable corporate growth providing new value.
※We are accelerating our drive to promote successful careers for women and develop an
environment in which they can fully demonstrate their abilities.
As of the end of CY2019◼ Eliminate Plastic Waste(Westin Grand Cayman Seven Mile Beach Resort & Spa / Sunshine
Suites Resort)
Cayman hotels stopped providing plastic straws

Total Number of person(Female of them)

Female Ratio

Directors

5（0）

0.0％

Employees

20（14）

70.0％

7（3）

42.9％

General Manager2 of Employees

Hotel Initiatives (MHM)
MHM has implemented various initiatives to contribute to local communities under
the challenges of COVID-19 in many areas, for example:✓ Proposed banquet plans with sufficient physical distancing by working closelywith Chamber of Commerce and Industry in Asahikawa and other cities✓ Actively participated in developing plans for a comfortable yet safe and secure
hot spring resort for Beppu City
✓ Provided hotel banquet space to a local government in Oita Prefecture without
a fee as a counseling room for COVID-19 related topics(Note 1) Combined heat and power (CHP), mainly refers to a system that effectively uses waste heat generated by power generation(Note 2) General manager and Staff General Manager◼ Initiatives for health and well-being of each employee
We have established various benefit programs listed below to support each work/life
styles of employees.
⚫
⚫
⚫
⚫
⚫
⚫
⚫
⚫

Childcare leave (including shortened work hours for childcare)
Family care leave (including shortened work hours for nursing care)
Family care leave to care for children
Monetary gifts for congratulations, condolences, etc.
Service provided by an employee benefits services company
Premium Friday (early-out once a month)
No overtime on Wednesdays
Off-peak commuting or remote working in case of emergency such as infectious disease
outbreak18

Appendix

Unitholder Benefit Program for Invincible Unitholders◼

INV introduced the Unitholder Benefits Program so that unitholders could enjoy staying at the wide range of hotels owned by INV, with the goal ofincreasing unitholders satisfaction and expanding the investor base◼

INV unitholders will receive 10% off the Best Available Rate at the Sheraton Grande Tokyo Bay Hotel and at all MyStays hotels◼

INV decided to remove the eligibility requirement of “holding 10 or more units” to enable all INV unitholders to utilize this program from the June
2020 Fiscal Period and onwards, considering the requests from unitholders and expecting some improvement in occupancy rate
Overview of Unitholder Special Benefit Program1

Applicable Hotels

Eligible
Unitholders

Eligible Hotels:
Sheraton Grande Tokyo Bay Hotel and All MyStays Hotels
Sheraton Grande Tokyo Bay Hotel◼ Sheraton Grande Tokyo Bay Hotel◼ All hotels managed by MyStays2
All unitholders who hold Invincible unit(s) and whosenames are on Invincible’s Unitholders’ Registry as ofthese record dates:✓ June 30 and December 31 of each year①②

Eligible Hotels

Sheraton Grande Tokyo
Bay Hotel

All MyStays Hotels

Details

10% discount from BAR3

10% discount from BAR3

Benefit Program

Hotel Reservation

Available Period4

via dedicated website of Sheraton Grande Tokyo Bay
Hotel or MyStays
Hotel MyStays
Premier Kanazawa◼ From April 1 to September 305(eligible unitholders as of December 31)

Fusaki Resort Village◼ From October 1 to March 31(eligible unitholders as of June 30)(Note 1) The details of the unitholder benefit program described above is what Invincible plans as of today, and the program may be changed or abolished evenafter it is actually introduced(Note 2) All hotels operated by Mystays Hotel Management Co., Ltd., which are listed on the Official Site of My Stays Hotel Group (https://www.mystays.com/).
Hereafter the same on the page
(Note 3) BAR (Best Available Rate) refers to the lowest price at the time of booking(Note 4) Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, youactually need to lodge during the availability period(Note 5) INV believes that the Benefit Program in place for eligible unitholders as of the end of the December 2019 Fiscal Period (available period: from April 1, 2020
to September 30, 2020) could not be fully utilized due to the COVID-19 pandemic, government declaration of a State of Emergency, and requests bymunicipalities to stay home. Therefore, INV extended the available period by three months to provide eligible unitholders with an opportunity to utilize
the Benefit Program

Hotel Epinard Nasu

Hotel MyStays
Premier Akasaka

Beppu Kamenoi Hotel

20

Domestic Portfolio Map (as of June 30, 2020)
No. ofProperties

No. ofHotelsNo. ofRsidentials

No. ofOthers

146

84

60

2

21

Track Record of External Growth◼

Over the last seven years, INV has built an irreplaceable diversified portfolio centered on both hotels and residential assets◼

INV has the largest hotel portfolio amongst J-REITs1(¥ million)
600,000

Top 5 J-REITs’ Hotel Portfolio1

Growth of AUM2
497,979

500,000

511,695
450,609448,362Hotel

369,708

400,000

Residential

353,695

Others300,000

266,619352,607434,373450,609248,326
200,000

173,815
117,927

181,032

108,500

96,162

63,11877,161

77,16145,37344,04019,07758,08358,08358,08363,182

71,116

93,013

19,077

19,077

14,46914,46914,46912,356

2011

2012

2013

2014

2015

2016

No. ofproperties3

54

78

78

91

111

100,000

0

161,707 160,936

90,1545,600

58,0055,600

55,485
5,600

2017

2018

2019

2020
June

124

126

132

147

148

Hotel

0

0

0

20

37

48

54

66

84

86

Residential

39

63

63

63

66

68

67

64

61

60

Others

15

15

15

8

8

8

5

2

2

2

INV

JHR

HRR

UUR

MTH

(Note 1) As of July 31, 2020
(Note 2) Based on acquisition price and acquisition price of SGTB interest in INV’s portfolio is calculated by applying the amount of preferred equity interest contribution by INV to the JV TMK. For overseas hotels, “The Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites
Resort”, the amount of TK investment to the SPC which held the leasehold of the hotels is deemed as the acquisition price and included regarding for 2018. For 2019 onward, the book value of the hotels as of May 9, 2019, which are converted into JPY amount via the forward exchange rate of
USD 1=JPY 110.45 based on the foreign exchange forward implemented in connection with the original TK investment in the Cayma n SPC (contract thereof was entered into on July 26, 2018 and implemented on September 26, 2018).
(Note 3) The amount of preferred equity interest contribution by INV to the JV TMK and the amount of TK investment by INV to the SPC are counted according to the number of properties of underlying assets and included the calculation which are based on the property type of the assets

22Summary of Appraisal Value
Trend of Appraisal Value(¥ million)
600,000

Unrealized Gain1

Book Value
500,000
400,000
300,000

126,558

200,000

77,268100,000
0

146,874

11,815

19,1501,905
75,363

114,743

127,724

Jun. 2014

Dec. 2014

Jun. 2015

214,952

323,291

328,192

61,81968,253

363,50270,96445,701400,007411,542

72,29774,607

462,580472,263

79,93083,960382,649

388,302557,099542,336

91,51665,080465,583

477,256

Dec. 2019

Jun. 2020

261,471259,938

292,537

327,709336,934

Jun. 2016

Dec. 2016

Jun. 2017

Dec. 2017

Jun. 2018

Dec. 2018

Jun. 201952,79153,18051,407

51,84951,55552,212

16,81818,56818,381

15,083

15,565

14,105

14,81615,010Jun. 2016

Dec. 2016

Jun. 2017

Dec. 2017

Jun. 2018

Dec. 2018

Jun. 2019

Dec. 2019

169,251
Dec. 2015

Trend of NAV per Unit2(¥)
60,000

Unrealized Gain per Unit

50,99853,79649,44450,00042,09240,00030,00020,00026,671

23,701
1,200

4,427

Jun. 2014

Dec. 2014

29,588

10,674

14,310

7,344

10,0000Jun. 2015

Dec. 2015

Jun. 2020(Note 1) Unrealized Gain = End‐of‐period Appraisal Value – End-of-period Book Value(Note 2) NAV per unit is calculated by the following formula: (End‐of‐period Amount of Net Assets ‐ Undistributed Profit + End‐of‐period Appraisal Value ‐ Tangible property (including leasehold rights in trust)) ÷ Investment Units outstanding as of the end of each fiscal period; and NAV per unit for the end of December
2016 is calculated based on unaudited financial data

23

Diversity of Overall Hotel Portfolio
The acquisition of hotels in 2019 and onward provides further diversification in hotel type and geographic footprint
As of December 31, 2017

As of December 31, 2018

As of June 30, 2020

54 Hotels

66 Hotels

86 Hotels

No. of Hotels1

Full Service
26.8%

Portfolio
Composition2
by Hotel Type3

Resort12.0%

Full Service
25.2%
LimitedService61.2%

OthersHokkaido 10.3%
area
4.6%

Portfolio
Composition2
by Geography4

Kyushuarea
7.9%(Note 3)(Note 4)

Overseas8.0%Greater Tokyo(ex. Tokyo 23 wards)

16.6%

Others
8.2%
Tokyo
23 wards
36.8%

Hokkaido
area
8.0%
Kyushuarea
6.0%
Kansaiarea
9.9% Chubu area
6.7%

LimitedService48.3%

Resort18.9%

Others8.0%

Kansaiarea
12.0%(Note 1)
(Note 2)

LimitedService55.9%

Overseas
10.4%

Tokyo
23 wards
40.2%

Chubu area
8.4%

Resort18.9%

Full Service
32.8%

Hokkaido
area
14.4%

Tokyo
23 wards
29.1%

Kyushuarea
7.9%

Greater Tokyo(ex. Tokyo 23 wards)

14.1%

Kansaiarea
7.7%

Greater Tokyo
Chubu area
11.0%

(ex. Tokyo 23 wards)

13.7%

The amount of preferred equity interest contribution by INV to the JV TMK and the amount of TK investment by INV to the SPC are counted according to the number of properties of underlying assets
Based on acquisition price and acquisition price of SGTB interest in INV’s portfolio is calculated by applying the amount of preferred equity interest contribution by INV to the JV TMK. The acquisition price of overseas hotels (i) as of the end of December 2018 is the amount of TK investment to the SPC which held theleasehold of properties and (ii) as of June 30, 2020 is the book value of the hotels as of May 9, 2019, which are converted into JPY amount via the forward exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward implemented in connection with the original TK investment in the Cayman SPC (contract thereof
was entered into on July 26, 2018 and implemented on September 26, 2018). The amount of preferred equity interest contribution by INV to the JV TMK and the amount of TK investment by INV to the SPC are included the calculation, which are based on the property type or location of the underlying asset
Full service hotels are, in general, hotels that have both restaurant facilities providing breakfast, lunch and dinner (including meals provided by reservation) and meeting facilities that can be used for banquet services. We categorize all hotels other than full service hotels as limited service hotels (except for limited service
hotels that are classified as resort hotels, as described below). Resort hotels are hotels located in areas where a substantial number of guests stay for sightseeing or recreational purposes and includes both full service hotels and limited service hotels. With respect to a hotel that falls within the definition of both a full service
hotel and a resort hotel, we categorize the hotel as a full service hotel if it has substantial demand for meeting room, banquet service, wedding service or food and beverage service (including demand from non-staying guests) and as a resort hotel in all other cases. With respect to a hotel that falls within the definition of both alimited service hotel and a resort hotel, we categorize the hotel as a resort hotel. The same shall apply hereafter
Defined as follows: Greater Tokyo (ex, Tokyo 23 wards) is Tokyo (ex. Tokyo 23 Wards), Kanagawa, Chiba and Saitama. Kansai area is Osaka, Hyogo ,Kyoto, Shiga, Wakayama and Nara. Chubu area is Aichi, Gifu, Mie, Shizuoka, Nagano, Yamanashi, Niigata, Toyama, Ishikawa and Fukui. Kyushu area is Fukuoka, Kumamoto,Kagoshima, Nagasaki, Oita, Miyazaki, Saga and Okinawa. The same shall apply hereafter

24Core Asset Portfolio Summary
Hotel

Hotel Type1

Location1

Rent Structure2
Fixed Rent
2.6%

Overseas
Others 8.0%

Management
Contract
8.3%

8.2%

Full Service
32.8%

LimitedService
48.3%

Tokyo
23 wards
29.1%

Hokkaido
area
14.4%

Greater Tokyo
Kyushu(ex. Tokyo 23 wards)
area
13.7%
7.9% Kansai Chubu
area
area
7.7% 11.0%

Resort18.9%

Fixed + Variable Rent
89.1%

(Note 1) Based on acquisition price of hotel portfolio owned by INV as of June 30, 2020. The 49% preferred equity interest in the JV TMK that holds Sheraton Grande Tokyo Bay Hotel (SGTB) is counted as one property for INV’s portfolio, and acquisition price of SGTB interest in INV’s portfolio is calculated by applying the amount ofpreferred equity interest contribution by Invincible to the JV TMK(Note 2) Based on acquisition price of hotel portfolio owned by INV as of June 30, 2020. Excluding the amount of the dividend by JV TMK, TK, and Management Contract Revenue of Overseas hotels

Residential

Room Type3,4Rent Range (Monthly)4,6
Others1.3%

Hokkaido
area
5.3%

Large
(Over 60m2)
12.6%

Medium(30m2 to 60m2)
27.8%

Location5

Kansai
area
17.0%
Small
(Less than 30m2)
59.6%

Chubu area
6.7%

¥150k -200k
7.7%More than ¥200k
1.9%¥100k-150k
20.9%
Tokyo
23 wards
59.6%

Less than ¥100k
69.6%

Greater Tokyo(ex. Tokyo 23 wards)

9.9%(Note 3) INV defines "Small” as a rentable unit with an area of less than 30m 2, “Medium” as a rentable unit with an area of 30m 2 to 60m2 and “Large” as a rentable unit with an area of 60m 2 or more
(Note 4) Based on the number of units excluding unit of shops and offices at the end of June 2020
(Note 5) Based on acquisition price of the properties owned by INV as of June 30, 2020
(Note 6) The amount of rent is based on monthly rent plus common-area charge for each unit at the end of June 202025

Inbound Market◼

The number of inbound visitors had constantly increased until 2019◼

However, because of the global COVID-19 pandemic, inbound visitors have vanished since March 2020, and the timing and level of recovery is too
hard to predict

Inbound Visitors to Japan by Country
2012

2013
YoY

(thousands of people)
2014

YoY

2015
YoY

2016
YoY

2017
YoY

2018
YoY

2019
YoY

2020
Jan-Jun
YoY

YoY

China

1,425

+36.6%

1,314

-7.8%

2,409

+83.3%

4,994 +107.3%

6,373+27.6%

7,356+15.4%

8,380+13.9%

9,594+14.5%

1,023-77.4%South Korea

2,043+23.2%

2,456+20.2%

2,755+12.2%

4,002+45.3%

5,090+27.2%

7,140+40.3%

7,538

+5.6%

5,585

-25.9%

478-87.6%

Taiwan1,466+47.5%

2,211+50.8%

2,830+28.0%

3,677+29.9%

4,167+13.3%

4,564

+9.5%

4,757

+4.2%

4,891

+2.8%

690

-72.2%

Hong Kong

482+32.0%

746+54.9%

926+24.1%

1,524+64.6%

1,839+20.7%

2,232+21.3%

2,207

-1.1%

2,291

+3.8%

345

-68.6%

Thailand261+79.8%

454+74.0%

658+45.0%

797+21.2%

901+13.1%

987

+9.5%

1,132

+14.7%

1,319+16.5%

215-68.5%

Malaysia

130+59.7%

177+35.6%

250+41.4%

305+22.4%

394+29.1%

440+11.5%

468

+6.6%

502

+7.1%

75

-68.6%

Indonesia

101+63.9%

137+34.8%

159+16.0%

205+29.2%

271+32.1%

352+30.0%

396+12.6%

413

+4.0%

70

-67.7%

Philippines

85+34.8%

108+27.4%

184+70.0%

268+45.7%

348+29.6%

424+21.9%

503+18.8%

613+21.7%

104-64.6%

Vietnam55+34.4%

84+53.1%

124+47.1%

185+49.2%

234+26.1%

309+32.1%

389+25.9%

495+27.3%

112-56.0%

USA

717+26.7%

799+11.5%

892+11.6%

1,033+15.9%

1,243+20.3%

1,375+10.6%

1,526+11.0%

1,724+12.9%

214-75.5%

UK

174+24.2%

192+10.2%

220+14.7%

258+17.5%

293+13.2%

311

+6.2%

333

+7.6%

424

+27.0%

50-73.2%

France130+36.6%

155+18.8%

179+15.3%

214+20.0%

253+18.3%

269

+5.9%

304

+13.5%

336+10.3%

41-74.2%

Canada135+33.6%

153+12.9%

183+19.7%

231+26.5%

273+18.0%

306+11.9%

330

+8.2%

375

+13.5%

53-71.3%

Australia

206+27.0%

245 +18.5%

303+23.8%

376+24.3%

445+18.4%

495+11.2%

552+11.6%

622+12.6%

143-56.4%

Others947+35.2%

1,343+18.5%

1,666+24.0%

1,914+14.9%

2,133+11.4%

2,369+11.1%

2,699+13.9%

335-73.0%

28,691 +19.3%

31,191+8.7%

31,882

+2.2%

3,947

-76.3%

Total
Source: JNTO

8,358 +34.4%

1,134+19.6%

10,364 +24.0%

13,413 +29.4%

19,737 +47.1%

24,039 +21.8%

26

Appendix - Financial and Operational Data

Key Operational Data for Variable Rent Hotels (1)Property

Location# ofAcquisition

rooms

Month

Occupancy

ADR (¥)

RevPAR (¥)

GOP (¥ mn)

Daily Ratio

Overseas Sales Ratio

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Y-o-Y

Y-o-Y

Y-o-Y

Y-o-Y (pt)Y-o-Y (pt)Y-o-Y (pt)

D1

MS Kanda

Chiyoda-ku, Tokyo126

May 2014

51.9%

-44.3

5,727

-35.5%

2,971-65.2%

2-97.8%

100%

0.0

21.8%

-13.5

D2

MS Asakusa

Sumida-ku, Tokyo160

May 2014

39.2%

-54.8

5,021

-26.4%

1,967-69.3%

9-91.2%

90%

0.1

59.9%

-7.9

D3

MS Kyoto-Shijo

Kyoto, Kyoto

224

Jul 2014

28.9%

-62.3

6,526

-39.2%

1,884-80.8%-20-109.3%

100%

0.0

50.6%

-8.3

D4

MS Shin-Urayasu CC.

Urayasu, Chiba

175

Jul 2014

41.6%

-48.5

7,564

-25.3%

3,148-65.5%

23-86.7%

100%

0.0

16.6%

-5.0

D5

MS Maihama

Urayasu, Chiba

90

Jul 2014

31.0%

-66.3

13,942-12.7%

4,320-72.2%

6-95.7%

100%

0.0

42.4%

-3.8

D6

MS Dojima

Osaka-shi, Osaka141

Jul 2014

60.2%

-33.9

7,206

-37.6%

4,337-60.1%

46-76.3%

100%

0.0

22.5%

-12.0

D7

MS Nagoya-Sakae

Nagoya, Aichi

270

Jul 2014

54.7%

-34.9

5,469

-23.4%

2,992-53.3%

30-81.7%

100%

0.1

29.8%

-10.5

D8

MS Sakaisuji-Honmachi

Osaka, Osaka190

Jul 2014

38.4%

-47.7

4,351

-36.5%

1,670-71.7%-10-110.5%

100%

0.0

25.4%

-6.4

D9

MS Yokohama

Yokohama, Kanagawa

194

Jul 2014

67.9%

-14.1

5,175

-33.4%

3,512-44.8%

32-68.5%

100%

0.0

15.2%

-8.1

D10 MS Nippori

Arakawa-ku, Tokyo93

Jul 2014

47.8%

-43.9

4,969

-31.3%

2,376-64.2%

1-97.4%

95%

3.5

40.0%

-12.9

D11 MS Fukuoka-Te njin-Minami

Fukuoka, Fukuoka

177

Jul 2014

48.7%

-43.5

5,417

-38.6%

2,638-67.6%

0-100.1%

100%

0.0

19.1%

-14.9

D12 FSI Iidabashi

Shinjuku-ku, Tokyo59

Jul 2014

67.0%

-24.3

6,102

-35.9%

4,089-53.0%

17-68.1%

92%

-2.5

28.2%

-10.1

D13 MS Ue no-Inaricho

Taito-ku, Tokyo72

Jul 2014

42.7%

-48.5

5,057

-33.3%

2,157-68.8%-3-106.4%

96%

3.3

53.7%

-18.0

D14 FSI Shinagawa

Shinagawa-ku, Tokyo55

Jul 2014

71.3%

-26.0

5,742

-34.1%

4,095-51.7%

10-76.9%

96%

1.0

23.2%

-7.4

D15 FSI Tokiwadai

Itabashi-ku, Tokyo129

Jul 2014

62.6%

-16.0

4,539

-16.7%

2,842-33.6%

35-39.3%

30%

-16.6

7.5%

-7.7

D16 FSI Sugamo

Toshima-ku, Tokyo104

Jul 2014

33.8%

-47.3

5,255

-15.7%

1,779-64.8%

7-87.8%

54%

6.1

9.5%

-1.5

D17 MS Ote mae

Osaka, Osaka110

Jul 2014

47.0%

-38.7

5,637

-40.1%

2,652-67.1%-3-104.6%

80%

-19.8

18.3%

-22.3

D18 MS Kiyosumi-Shirakawa

Koto-ku, Tokyo57

Jul 2014

50.6%

-36.1

7,120

0.9%

3,603

-41.1%

8-77.0%

100%

27.0

41.0%

0.2

D19 FSI Nakanobu P1

Shinagawa-ku, Tokyo39

Jul 2014

76.2%

-13.5

4,704

-21.9%

3,584-33.7%

13-39.6%

44%

0.5

5.2%

-7.6

D20 FSI Nakanobu P2

Shinagawa-ku, Tokyo22

Jul 2014

77.5%

-13.8

3,961

-29.8%

3,072-40.4%

4-60.4%

61%

0.5

11.7%

-6.9

D21 Apahote l Yokohama-Kannai

Yokohama, Kanagawa

451

Fe b 2015

70.6%

-22.8

4,190

-44.1%

2,958-57.8%

215

-3.6%

-

-

-

-

D22 MS Hakodate -Goryokaku

Hakodate , Hokkaido

208

Fe b 2015

35.9%

-35.1

6,257

-25.1%

2,248-62.1%

5-95.8%

100%

0.0

8.4%

-4.9

D23 FSI Shirogane

Minato-ku, Tokyo84

Fe b 2015

48.2%

-36.3

6,175

-14.7%

2,978-51.3%

19-66.1%

36%

-9.4

16.6%

-6.5

D24 MS Hane da

Ota-ku, Tokyo174

Jul 2015

78.0%

-17.5

9,371

-16.0%

7,314-31.4%

111-41.0%

100%

0.0

25.1%

-7.8

D25 MS Kame ido P1

Koto-ku, Tokyo265

Jul 2015

44.8%

-46.8

5,112

-15.5%

2,288-58.7%

49-71.7%

58%

13.0

12.2%

0.1

D26 MS Ue no-Iriyaguchi

Taito-ku, Tokyo97

Jul 2015

42.0%

-52.1

6,309

-36.7%

2,649-71.7%

0-100.5%

100%

0.0

55.9%

-19.0

D27 MS Kame ido P2

Koto-ku, Tokyo175

Jul 2015

49.3%

-44.9

4,927

-20.4%

2,428-58.3%

31-73.3%

74%

8.1

21.5%

-0.1

D28 MS Shimizu

Shizuoka, Shizuoka

152

Jul 2015

68.2%

-8.2

5,002

-23.5%

3,412-31.7%

17-72.1%

100%

0.0

13.7%

-1.1

D30 FSI Higashi-Jujo

Kita-ku, Tokyo88

Jul 2015

47.8%

-39.7

4,556

-15.7%

2,180-53.9%

4-88.0%

86%

1.8

30.9%

-15.2

D31 MS Utsunomiya

Utsunomiya, Tochigi

116

Jul 2015

56.4%

-38.0

6,536

-16.2%

3,689-49.9%

2-97.0%

100%

0.0

12.8%

-6.5

D32 FSI Kawasaki-Kaizuka

Kawasaki, Kanagawa

64

Jul 2015

75.0%

-12.1

4,842

-12.7%

3,631-24.8%

20-32.1%

31%

2.6

6.9%

-3.2

D34 FSI Kawasaki-Ogawacho

Kawasaki, Kanagawa

62

Jul 2015

75.5%

-16.0

3,898

-17.8%

2,942-32.2%

14-41.1%

32%

5.6

4.6%

-1.4

D35 FSI Ekoda

Ne rima-ku, Tokyo210

Aug 2015

55.2%

-31.9

4,771

-10.0%

2,632-43.0%

53-54.4%

34%

1.1

7.2%

-0.4

D38 MS Shinsaibashi

Osaka, Osaka54

Jan 2016

46.8%

-48.8

6,190

-45.4%

2,895-73.3%-2-105.0%

100%

0.0

47.8%

-22.9

D43 MS Gotanda Station

Shinagawa-ku, Tokyo384

Mar 2016

65.6%

-26.8

7,249

-33.0%

4,756-52.4%

127-71.9%

100%

0.0

18.1%

-5.6

D44 Hote l Epinard Nasu

Nasu, Tochigi

310

Mar 2016

37.3%

-43.1

21,169

-1.4%

7,904

-54.3%-161-127.4%

100%

0.0

0.2%

-0.1

D45 MS Fukuoka Te njin

Fukuoka, Fukuoka

217

Mar 2016

45.4%

-47.3

5,799

-39.0%

2,630-70.1%

10-94.9%

100%

0.0

22.5%

-23.7

D46 MS Hamamatsucho

Minato-ku, Tokyo105

Mar 2016

65.0%

-31.6

6,190

-41.5%

4,025-60.6%

15-85.4%

100%

0.0

27.9%

-19.4

D47 MSP Kanazawa

Kanazawa, Ishikawa

244

Jun 2016

48.0%

-38.5

7,533

-32.9%

3,612-62.8%

70-75.0%

100%

0.0

21.9%

-7.3

D49 MSP Hamamatsucho

Minato-ku, Tokyo120

May 2017

68.8%

-26.5

10,335-42.4%

7,107-58.5%

73-69.8%

100%

0.0

47.2%

-24.5

(Note 1) Excludes the data for 9 hotels* with fixed-rent lease as well as Sheraton Grande Tokyo Bay since they are not allowed to be disclosed. (*D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi,
D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel)(Note 2) Actual results for the pre-acquisition period of the properties is based on actual results provided by sellers(Note 3) The data of daily ratio and overseas sales ratio for Apahotel Yokohama-Kannai is not disclosed(Note 4) The figures for “Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort” are in US dollars, and in USD in thousands for GOP

28

Key Operational Data for Variable Rent Hotels (2)Property

Location# ofAcquisition

rooms

Month

Occupancy

ADR (¥)

RevPAR (¥)

GOP (¥ mn)

Daily Ratio

Overseas Sales Ratio

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Jan.-Jun. 2020 Actual

Y-o-Y

Y-o-Y

Y-o-Y

Y-o-Y (pt)Y-o-Y (pt)Y-o-Y (pt)

D50 MS Shin Osaka CC

Osaka-shi, Osaka397

Oct 2017

39.2%

-44.2

5,139

-32.0%

2,013-68.1%-1-100.4%

100%

0.0

14.9%

-10.8

D51 MSP Omori

Shinagawa-ku, Tokyo232

Oct 2017

53.8%

-40.5

8,204

-35.4%

4,410-63.2%

41-85.3%

100%

0.0

37.0%

-10.4

D52 Be ppu Kame noi Hote l

Be ppu-shi, Oita

322

Oct 2017

54.1%

-34.6

8,485

-32.1%

4,590-58.6%

34-91.7%

100%

0.0

17.5%

-7.9

D53 MS Sapporo Station

Sapporo-shi, Hokkaido

242

Oct 2017

25.5%

-64.9

10,194

-3.5%

2,600

-72.8%

10-95.4%

100%

0.0

60.5%

22.2

D54 MS Yokohama Kannai

Yokohama-shi , Kanagawa

165

Fe b 2018

73.7%

-20.2

5,149

-43.6%

3,793-55.7%

25-81.0%

100%

0.0

22.2%

-9.8

D55 Art Hote l Joe tsu

Joe tsu-shi, Niigata

198

Fe b 2018

34.8%

-30.6

7,119

-11.9%

2,480-53.1%-47-146.7%

100%

0.0

4.2%

-0.4

D56 Art Hote l Hirosaki City

Hirosaki-shi, Aomori

134

Fe b 2018

37.0%

-35.9

7,058

-34.9%

2,610-67.0%-67-149.2%

100%

0.0

7.6%

-2.1

D57 MS Oita

Oita-shi, Oita

145

Fe b 2018

62.7%

-28.6

4,853

-18.5%

3,042-44.1%

3-94.7%

100%

0.0

16.6%

-7.5

D58 MS Gotanda

Shinagawa-ku, Tokyo110

Jun 2018

69.3%

-26.0

6,593

-34.0%

4,568-52.0%

20-79.2%

100%

0.3

16.6%

-7.7

D59 MS Tachikawa

Tachikawa-shi, Tokyo121

Jun 2018

85.8%

-9.0

6,339

-28.9%

5,438-35.6%

39-56.3%

100%

0.0

17.2%

-4.9

D60 MSP Akasaka

Minato-ku, Tokyo327

Aug 2018

58.1%

-36.1

7,413

-40.5%

4,306-63.3%

92-78.8%

100%

0.0

33.9%

-18.9

D61 MSP Sapporo Park

Sapporo-shi, Hokkaido

419

Aug 2018

33.5%

-50.5

9,077

-20.0%

3,044-68.1%-65-117.0%

100%

0.0

18.8%

-0.7

D62 MS Ue no East

Taito-ku, Tokyo150

Aug 2018

41.4%

-53.6

7,179

-27.8%

2,970-68.5%

5-96.2%

100%

0.0

54.2%

-15.1

D63 MS Midosuji Honmachi

Osaka, Osaka108

Aug 2018

41.2%

-48.0

5,628

-39.7%

2,318-72.2%-9-111.9%

100%

0.0

42.4%

-7.4

D64 Hote l MyStays Sapporo Aspe n

Sapporo-shi, Hokkaido

305

Jul 2019

34.3%

-53.5

10,722-19.4%

3,677-68.5%

6-98.4%

100%

0.0

43.8%

7.5

D65 Art Hote l Ishigakijima

Ishigaki-shi, Okinawa

245

Jul 2019

38.0%

-43.7

12,689-18.5%

4,825-62.1%-109-151.9%

100%

0.0

9.3%

-1.9

D66 Hote l MyStays Fuji Onse n Re sort

Fujiyoshida-shi, Yamanashi

159

Jul 2019

34.3%

-53.5

13,246-23.8%

4,546-70.2%-13-105.5%

100%

0.0

51.8%

-5.0

D67 Hote l Sonia Otaru

Otaru‐shi, Hokkaido

149

Jul 2019

31.6%

-34.3

11,143-14.4%

3,527-58.9%-15-113.1%

100%

0.0

43.6%

8.1

D68 Hote l MyStays Kanazawa Castle

Kanazawa-shi, Ishikawa

206

Jul 2019

35.0%

-47.6

6,758

-27.6%

2,363-69.3%-4-103.2%

100%

0.0

24.6%

-8.7

D69 Art Hote l Niigata Station

Niigata-shi, Niigata

304

Jul 2019

45.1%

-40.7

5,746

-16.1%

2,589-55.9%-16-108.5%

100%

0.0

6.3%

-1.7

D70 Hote l MyStays Nagoya Nishiki

Nagoya-shi, Aichi

169

Jul 2019

43.3%

-47.0

6,340

-21.9%

2,745-62.5%

12-89.3%

100%

0.0

38.6%

-1.8

D71 Hote l Nord Otaru

Otaru‐shi, Hokkaido

98

Jul 2019

28.1%

-52.9

12,784

-8.7%

3,586

-68.4%-11-111.1%

100%

0.0

48.8%

13.1

D72 Hote l MyStays Kagoshima Te nmonkan

Kagoshima-shi, Kagoshima

196

Jul 2019

61.7%

-27.9

5,084

-21.0%

3,137-45.6%-4-105.5%

100%

0.0

18.3%

-6.6

D73 Art Hote l Asahikawa

Asahikawa-shi, Hokkaido

265

Jul 2019

41.2%

-39.8

5,445

-22.8%

2,245-60.7%-228-434.4%

100%

0.0

9.0%

0.7

D74 Hote l MyStays Matsuyama

Matsuyama-shi, Ehime

162

Jul 2019

43.4%

-40.2

7,504

-11.8%

3,256-54.2%-16-115.4%

100%

0.0

12.7%

-5.9

D75 Hote l MyStays Sapporo Susukino

Sapporo-shi, Hokkaido

104

Jul 2019

26.3%

-43.8

7,422

-18.9%

1,955-69.6%-3-105.4%

100%

0.0

30.7%

1.3

D76 Hote l MyStays Sapporo Nakajima Park

Sapporo-shi, Hokkaido

86

Jul 2019

22.7%

-55.8

8,729

-19.5%

1,984-76.7%-17-132.0%

100%

0.0

59.8%

8.9

D77 Hote l MyStays Sapporo Nakajima Park Anne x

Sapporo-shi, Hokkaido

80

Jul 2019

19.3%

-56.2

6,292

-18.6%

1,212-79.2%-13-135.1%

100%

0.0

66.4%

15.0

D78 Fle xstay Inn Sakuragicho

Yokohama-shi, Kanagawa

70

Jul 2019

72.8%

-20.9

4,731

-22.9%

3,444-40.1%

18-54.9%

54%

-12.5

12.2%

-7.9

D79 MyCUBE by MYSTAYS Asakusa Kuramae

Taito-ku, Tokyo161

Jul 2019

24.2%

-66.7

2,916

-21.0%

705-79.0%-19-157.8%

100%

0.0

46.1%

-12.1

D80 Hote l MyStays Kagoshima Te nmonkan Anne x

Kagoshima-shi, Kagoshima73

Jul 2019

75.3%

-18.0

4,677

-24.5%

3,522-39.1%

9-73.1%

100%

0.0

27.7%

-12.0

D81 Hote l MyStays Nayoro

Nayoro-shi, Hokkaido

70

Jul 2019

52.0%

-22.0

7,282

-2.2%

3,787

-31.3%

13-57.3%

100%

0.0

4.1%

-1.3

D82 Hote l MyStays Pre mie r Narita

Narita-shi, Chiba

711

Jan 2020

56.8%

-26.3

8,429

1.1%

4,791

-30.9%

52-80.7%

100%

0.0

17.2%

1.7

D83 Art Hote l Morioka

Morioka-shi, Iwate

214

Jan 2020

61.6%

-2.5

5,472

-29.8%

3,372-32.5%-40-134.6%

100%

0.0

12.6%

-1.0

Domestic Hotels

49.1%

-37.7

6,937

-27.2%

3,405-58.8%

569-94.6%

95.6%-78.8%

22.8%-8

D200 We stin Grand Cayman Se ve n Mile Be ach Re sort & Spa

Grand Cayman

343

Se p 2018

37.4%

-53.0

569

20.3%

213

-50.2%

7,328-67.2%----

D201 Sunshine Suite s Re sort

Grand Cayman

131

Se p 2018

37.9%

-48.5

276

6.5%

105

-53.3%

1,174-72.8%

-

-

-

-

37.5%

-51.7

487

17.2%

183

-50.7%

8,502-68.1%----

Oversea Hotels--

12,964474--(Note 1) Excludes the data for 9 hotels* with fixed-rent lease as well as Sheraton Grande Tokyo Bay since they are not allowed to be disclosed. (*D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi,
D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel)(Note 2) Actual results for the pre-acquisition period of the properties is based on actual results provided by sellers(Note 3) The data of daily ratio and overseas sales ratio for Apahotel Yokohama-Kannai is not disclosed(Note 4) The figures for “Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort” are in US dollars, and in USD in thousands for GOP

29

Financial Metrics
Items

June 2017

December 2017

June 2018

December 2018

June 2019

December 2019

June 2020

Jan 1, 2017Jun 30, 2017

Jul 1, 2017Dec 31, 2017

Jan 1, 2018Jun 30, 2018

Jul 1, 2018Dec 31, 2018

Jan 1, 2019Jun 30, 2019

Jul 1, 2019Dec 31, 2019

Jan 1, 2020Jun 30, 2020

Amount of Total Assets (JPY million)

306,421371,758

374,512455,362

467,931522,431516,663

Amount of Net Assets (JPY million)

139,062

181,320

181,523

221,364

233,046

259,730

249,538

45.4%

48.8%

48.5%

48.6%

49.8%

49.7%

48.3%

Capital-to-Asset Ratio
Total Amount of Investment (JPY million)

128,984

168,798

168,798

211,092

211,092

235,701

235,701End-of-period total number of units issued

3,860,824

4,793,181

4,793,181

5,666,840

5,666,840

6,096,840

6,096,840

Amount of Net Assets per Unit ( JPY)

36,01937,82937,87139,063

41,12542,60140,929Return on Asset (ROA) (annualized)

3.2%

4.3%

4.2%

3.8%

9.4%

4.6%

0.2%

Return on Equity (ROE) (annualized)

7.0%

9.1%

8.6%

7.7%

19.3%

9.3%

0.3%
263,468

163,990

186,983

189,415

229,873

228,774

259,174

Weighted average interest rate

0.5%

0.5%

0.5%

0.5%

0.5%

0.6%

0.5%

Loan to Value (LTV 1)

55.0%

51.8%

52.1%

52.0%

51.9%

52.3%

52.7%

End-of-period Loan-to-Value based on Total Assets (LTV 2)

53.5%

50.3%

50.6%

50.5%

48.9%

49.6%

51.0%

Net Operating Income (NOI) (JPY million)

8,023

10,008

10,491

13,03914,734

15,164

4,026

NOI yield (annualized)

5.7%

6.3%

5.9%

6.4%

7.1%

6.2%

1.6%

Depreciation Expenses (JPY million)

2,281

2,567

2,772

3,039

3,168

3,757

3,999

Funds From Operations (FFO) (JPY million)

6,983

8,626

9,244

11,423

13,29013,4262,377

NAV (JPY million)

205,318

246,404

248,519

292,154295,874

327,985

301,450

NAV per Unit (JPY)53,18051,407

51,84951,55552,21253,79649,444

0.9

0.9

1.0

0.9

1.1

1.2

0.6

Amount of interest-bearing debts (JPY million)

NAV ratio(Note 1) Financial indicators calculation method in the above table are as follows
・ ROA(annualized)＝ Ordinary Income / Weighted Average Total Assets during the period x 100/days during the period x 3・ ROE(annualized)＝ Net Income / Weighted Average Net Assets during the period x 100/days during the period x 365
・ LTV(1)＝ End‐of‐period Interest‐Bearing Debt / (End‐of‐period Interest‐Bearing Debt + Unitholders’ Capital + Unitholders’ Capital Surplus)x100
・ LTV(2)＝ End‐of‐period Interest‐Bearing Debt / End‐of‐period Total Assets x 100
・ NOI＝ Rental Revenues + TMK Dividend amount ‐ Property-Related Expenses + Depreciation Expenses
・ NOI yield (annualized)＝((Rental Revenues + TMK Dividend amount ‐ Property-Related Expenses + Depreciation Expenses)/ days during the period x 365)/ Acquisition Price
・ FFO＝ Net Income + Depreciation Expenses + Other Amortization – Gain on Sales of Properties + Loss from Sales of Properties
・ NAV＝ End‐of‐period Amount of Net Assets – Undistributed Profit + End‐of‐period Appraisal Value ‐ Tangible property (including leasehold rights in trust)・ NAV ratio ＝ period-end unit price/ Amount of Net Assets per Unit
(Note 2) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place
In addition “Amount of Net Assets per Unit (¥)” and “NAV per Unit (¥)” are rounded to nearest yen

30June 2020 Results — Comparison with December 2019(¥ million, otherwise stated)
Dec 2019 Period Jun 2019 Period

Operating revenue

Jul 1, 2019-

Jan 1, 2020-

Dec 31, 2019

Jun 30, 2020

Variance
Major Causes for Variance％

Amount18,5879,410-9,177-49.4%

14,545

5,838-8,706-59.9%

Hotel Rents

11,823

3,296-8,526-72.1% Incre ase in re ntal re ve nue by ne wly acquire d prope rtie s: +324

Residential Rents

2,210

2,036

-173

-7.9% Incre ase /de cre ase in re ntal re ve nue of e xisting portfolio: -8,840

1,397

890

-507

TMK Dividend amount

673

634

-38

TK Dividend amount

0

0

0

-

1,970

2,046

+75

-

5,728

7,913

+2,184+38.1%

4,673

6,801

+2,128+45.6%

631

598

-32

-5.1% Othe rs:

3,345

3,578

+233

+7.0% (De cre ase in de pre ciation e xpe nse s: +192)

537

535

-2

- (De cre ase in de pre ciation e xpe nse s: -14)

412

420

+8

-

NOI

15,164

4,026-11,137-73.4%NOI after depreciation

11,40627-11,379-99.8%

Operating income

12,858

1,496-11,362-88.4%

43

57

+13

+32.2%

Real estate rental revenues

De cre ase in re ntal re ve nue by disposition in pre vious fiscal pe riod: -101

Management contract revenue- (Hote l: -8,863 / Re side ntial: +27)
De cre ase in manage me nt contract re ve nue : -507

Gain on sale of properties
Operating expenses
Real estate rental expenses
Taxes and other public charges-5.8% Variance of gain on sale : +75

Payme nt for the prope rty manage me nt costs and the manage me nt fe e s
re garding Me morandum of Unde rstanding to ame nd the fixe d-te rm building
le ase and prope rty manage me nt agre e me nt as of May 11, 2020: +1,916 (Note 1)

Incre ase in cost by ne w acquire d prope rtie s: +217

Depreciation expenses

De cre ase in cost by disposition in pre vious fiscal pe riod: -37

Management contract expenses
Depreciation expenses

Non-operating income

Incre ase e xpe nse s for e xisting portfolio: +67(Incre ase in de pre ciation e xpe nse s: +68)

PO cost: -143

Non-operating expenses

1,262

1,129

-133

-10.5%

Ordinary income

11,639424-11,215-96.4%Net income

11,638423-11,215-96.4%

Distribution per Unit (JPY)

1,725

69

-1,656-96.0%

0

0

0

-

184

182

-

-

De bt cost: -50
Inte re st cost: +15
Fore ign e xchange losse s: +31

Excess dividend per Unit (JPY)
Operating Days

(Note 1) Deducting ¥566 million of rent income paid by MHM from March to June 2020, the actual amount of INV's burden of the property management cost and the management fee for MHM was ¥1,350 million(Note 2) Percentages are rounded to one decimal place. Amount of money is rounded down to the nearest million yen

31Income Statement
December 2019 Period
Jul 1, 2019Dec 31, 2019
JPY thousand(%)

June 2020 Period
Jan 1, 2020Jun 30, 2020
JPY thousand(%)

Operating revenue (1)Rental revenue
Management contract revenue
Gain on sales of properties (2)Dividend income
Operating expenses
Property related expenses (3)Management contract expenses (4)Depreciation expenses (5)NOI (including dividend income) (1)-(2)-(3)-(4)+(5)Asset management fees
Directors’ compensation
Asset custody fees
Administrative service fees
Other
Operating income
Non-operating income
Interest income
Foreign exchange gains
Interest on tax refund
Gain of derivatives
Other
Non-operating expenses
Interest expenses
Foreign exchange losses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Loan-related costs
Investment unit issuance expenses
Other
Ordinary income
Extraordinary income
Subsidy income
Extraordinary losses
Loss on reduction entry of non-current assets
Income before income taxes
Income taxes
Net income

18,587,253
14,545,826
1,397,621
1,970,306
673,498
5,728,269
4,673,007
537,5423,757,778
15,164,176
300,000
4,800
25,51857,444
129,956
12,858,984
43,270179
40,710289
2,091
1,262,700
687,208
15,654
4,256
412,550
143,029
1
11,639,553
11,639,553
605

100.0

9,410,225
5,838,836
890,4422,046,294
634,651
7,913,247
6,801,584
535,279
3,999,589
4,026,657
300,000
4,800
26,23147,259198,092
1,496,977
57,183
114

11,638,948

62.6

Retained earnings / losses brought forward

11,622,477

12,744,377

1,121,899

Unappropriated retained earnings / losses at the end of the period

23,261,426

13,168,294(10,093,131)

Items

30.8

81.6

69.2
0.2

Changes
JPY thousand

100.0

84.1

42.8

15.9
0.6
-

6.8

62.6
62.6

7,712
47,743
1,613
1,129,639
702,917
31,67525,911
5,928
362,534670
424,522
73,11973,11973,11973,119424,522605
423,917

12.0

4.5
1
1
4.5
4.5

(9,177,028)(8,706,990)(507,179)
75,988(38,846)
2,184,9782,128,576(2,262)
241,810(11,137,520)
712(10,184)
68,136(11,362,006)
13,913(65)(40,710)
7,423
47,743(478)(133,061)
15,70831,675
10,256
1,672(50,015)(143,029)
669(11,215,031)
73,11973,11973,11973,119(11,215,031)(11,215,031)

(%)
-49.4

38.1

(73.4)-88.4
32.2(10.5)(96.4)(96.4)(96.4)

32

Balance Sheet - Assets
Items
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Accounts receivables
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Consumption tax receivable
OthersTotal current assets
Non-current assets
Property and equipment
Buildings
Buildings and accompanying facilities
Structures
Tools, furniture and fixtures
Construction in progress
Buildings in trust
Buildings and accompanying facilities in trust
Structures in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Total property and equipment
Intangible assets
Leasehold rights
Leasehold rights in trust
Total intangible assets
Investment and other assets
Investment securities
Guarantee deposits
Long-term prepaid expenses
Derivatives assets
OthersTotal investment and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

December 2019 Period( As of December 31, 2019)
JPY thousand(%)

17,924,733
10,862,669
613,5633,448,548
482,506
718,710
137,528
2,239,471
154
36,427,886

June 2020 Period( As of June 30, 2020)
JPY thousand(%)

Changes
JPY thousand

7.0

10,190,672
6,127,902
304,863262,507582,415
129,613
831,675
18,429,649

84.6

18,897,798
4,950,697
1,439
1,042,897
486,479
150,462,363
24,417,485
147,882
1,812,311
250,271,308
129,129452,619,792

4.6

10,637,811
14,614,328
25,252,140

17,856,387
803,721974,554
166,234
22,667
19,823,566
485,944,557

3.8
93.0

17,856,387
1,362,721
898,626
152,275
22,667
20,292,677
498,164,611

3.9
96.4

559,000(75,928)(13,959)
469,111
12,220,054

59,55659,556522,431,999

0.0
100.0

69,157
69,157
516,663,418

0.0
100.0

9,601
9,601
(5,768,581)

18,863,867
4,921,052
1,022,877
534,690
144,434,970
24,913,618
133,045
1,618,767
245,771,234
3,179
442,217,302
10,637,811
13,265,876
23,903,688

(%)

3.6

(7,734,061)(4,734,767)(613,563)(3,143,684)(219,998)(136,295)(7,914)(1,407,795)(154)(17,998,236)(49.4)

87.6

33,93129,645
1,439
20,019(48,211)
6,027,392(496,132)
14,837
193,543
4,500,074
125,949
10,402,489

2.4

4.9

1,348,452
1,348,452

5.6

2.4
2.5

(1.1)

33

Balance Sheet – Liabilities/Net Assets
Items
Liabilities
Current liabilities
Accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Deduction of captial surplus
Allowance for temporary differences adjustment
Other deduction of capital surplus
Total deduction of captial surplus
Capital surplus (net)
Retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

December 2019 Period( As of December 31, 2019)
JPY thousand(%)

443,004
2,686,000
50,130,000
125,221272,659605
798,980
52,12854,508,599

June 2020 Period( As of June 30, 2020)
JPY thousand(%)

Changes
JPY thousand

(%)

10.4

142,330
880,000
57,380,000
301,280
269,814605
1,000,217
31,88960,006,137

11.6(300,674)(1,806,000)
7,250,000
176,058(2,844)201,236(20,238)
5,497,537

10.1

7,000,000
199,358,000
1,765,094
37,00732,539208,192,641
262,701,240

39.9
50.3

8,200,000
197,008,000
1,749,862
128,466
32,756207,119,086
267,125,223

40.1
51.7

1,200,000(2,350,000)(15,231)
91,459217(1,073,554)
4,423,983

(0.5)
1.7

235,701,512

45.1

235,701,512

45.6

-

-

6,264,432

6,264,432-(6,130)(5,524,006)(5,530,137)
734,294
23,261,426
23,995,720
259,697,232

4.6
49.7

(6,130)(5,524,006)(5,530,137)
734,294
13,168,294
13,902,588
249,604,100

2.7
48.3

(10,093,131)(10,093,131)(10,093,131)

-42.1
-3.9

33,52533,525
259,730,758
522,431,999

0.0
49.7
100.0

△65,906△65,906
249,538,194
516,663,418

△ 0.0
48.3
100.0

(99,432)(99,432)(10,192,564)(5,768,581)(296.6)
-3.9
(1.1)

34

Cash Flow Statement and Dividend Distribution
Items

December 2019 Period
Jul 1, 2019Dec 31, 2019
(JPY thousand)June 2020 Period
Jan 1, 2020Jun 30, 2020
(JPY thousand)Cash flows from operating activities
Income before income taxes

11,639,553

424,522

Depreciation and amortization

3,757,778

3,999,589-

73,119143,029-

Loss on reduction entry of non-current assets
Investment unit issuance costs
Amortization of investment corporation bond issuance costs
Loan-related costs

4,256

5,928

412,550

362,534

Interest income

(179)

(114)

Interest expenses

702,863

728,828

Foreign exchange losses (gains)(32,090)

9,864-(47,743)(148)-

Loss (gain) of derivatives
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in rental receivables(344,338)

2,798,340

Decrease (Increase) in deposits paid

(110,785)

219,998

Decrease (increase) in receivable income taxes
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accounts payable

31,5397,942(2,426,511)

1,594,835(36,363)(13,390)(187,039)

Increase (decrease) in accounts payable-other(29,060)

163,143

Increase (decrease) in accrued expenses(92,670)(1,411)

Increase (decrease) in advances received(12,896)546,581

Increase (decrease) in deposits received(199,247)(20,238)

Decrease in property and equipment in trust due to sale

2,991,980

2,269,720

Others(148,847)

726,442

Subtotal

13,673,054

13,661,453

Interest income received
Interest expenses paid
Income taxes paid
Cash flows from operating activities

179

114

(701,225)(729,698)

(605)

(605)

12,971,404

12,931,264

Jun 2020 Period
January 1, 2020
Jun 30, 2020

Unappropriated retained earnings(JPY thousand)

23,261,426

13,168,294

Distributions(JPY thousand)

10,517,049

420,681(JPY thousand)

10,517,049

420,681

(JPY)

1,725

69

(JPY)

1,725

69

12,744,377

12,747,612

Of which, distributions of earnings
Distribution per unit
Of which, distributions of earnings per unit
Retained earnings / losses carried forward(2,577,357)

Increase (decrease) in consumption taxes payableDec 2019 Period
Jul 1, 2019Dec 31, 2019

Items

(JPY thousand)Cash flows from investment activities
Purchases of property and equipment(543,104)(458,135)(83,576,781)(16,523,212)

Purchases of leasehold rights in trust(440,504)(1,387,263)

Repayments of tenant leasehold and security deposits(48,255)(56,966)

Proceeds from tenant leasehold and security deposits in trust

67,022

42,113Purchases of property and equipment in trust

Payments of tenant leasehold and security deposits
OthersCash flows from investment activities--

28,651

43,852(84,512,972)(18,898,611)

Cash flows from financing activities
Proceeds from short-term loans payable

2,686,000

Repayments of short-term loans payable

880,000-(2,686,000)

Proceeds from long-term loans payable

61,775,000

19,583,000

Repayments of long-term loans payable(37,061,000)(14,683,000)

Proceeds from issuance of investment corporation bonds

2,971,665

1,184,469

Payments for loan-related costs(839,086)(265,553)

Payments of distributions of earnings(9,144,041)(10,514,410)

Proceeds from issuance of investment units

24,340,740-

44,729,277(6,501,494)

Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

(13)

13

Net increase (decrease) in cash and cash equivalents(26,812,304)(12,468,828)

Cash and cash equivalents at beginning of period

55,599,707

28,787,403

Cash and cash equivalents at end of period

28,787,403

16,318,574

35

Property Income (1/4)(in ¥ thousand)
Property Number

A26

A27
NisshinNisshin
Property Name

Palacestage
Daitabashi

number of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

A28

Palacestage
HigashiNagasaki

A29

A30

GrowthGrowth

MaisonMaisonGotandaKameido

A32

Emerald
House

A33

A34

A35

S uncrest

GrowthBelle Face

S hakujii-

Maison S hin-

Ueno-

Koen

Yokohama

Okachimachi

A37

A38

A39

A40

S hibuya-Grand Rire

GrowthRoute

Kameido

Maison Yoga

Tachikawa

Honmachi
MansionA41

A43

Acseeds
City Heights

Tower

KinutaKawaguchiNamiki

A44

CollegeS quareMachida

A45

BelairWacoreMeguroTsunashima I

A46

A47

A48
College

Foros

GrowthNakamura-

MaisonS quarebashi

KaijinMachiya

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

40,612

47,466

27,69435,65250,04737,54338,12336,452

26,61923,18521,71320,937

16,772

26,06817,046

17,67818,79618,987

22,584

14,92437,47942,985

26,91632,982

39,59733,94033,261

29,792

26,61921,478

19,95820,38815,394

24,522

17,046

16,476

17,934

17,057

20,873

14,706

Rental revenues (Fixed rent)
Rental revenues (Variable rent) (Note 2)
Other revenue

3,133

4,480

778

2,670

10,449

3,603

4,862

6,659

-

1,706

1,755

548

1,378

1,545

-

1,202

861

1,930

1,711

218

19,65625,1808,784

14,32523,361

17,725

16,176

18,400

8,776

9,065

8,201

5,880

5,703

11,610

3,761

5,598

8,683

9,965

13,823

5,707

6,250

5,780

1,922

3,803

7,374

4,521

3,790

6,901

982

2,340

1,920

1,519

1,802

2,918

731

1,507

2,393

2,423

3,354

624

423

732

269

90

32

462

133

912

769

8

233

90

90

82

731

75

273

90

100

241

( of whic h, utility expenses)

1,764

2,210

296

533

946

877

535

491

-

311

235

151

154

388

-

167

400

284

866

-

Tax and other public c harges (b)

1,639

2,691

1,346

1,661

2,558

3,120

2,420

1,668

1,734

1,371

1,073

957

1,003

1,111

508

907

876

977

2,068

934

② Property related expenses
Fac ility management fees (a)（of whic h, repair c ost)

Insuranc e expenses (c )Deprec iation expenses（⑦）

49

75

29

41

79

72

54

38

43

29

31

25

23

32

27

19

26

24

62

21

9,594

14,377

4,961

6,221

8,624

8,679

6,361

5,456

5,516

4,163

4,191

2,572

2,068

5,275

1,993

2,341

4,247

5,240

7,162

3,627

Other expenses (d)

2,123

2,255

524

2,597

4,725

1,332

3,549

4,335

500

1,160

984

805

804

2,273

500

823

1,139

1,299

1,174

500

③ Rental inc ome（①－②）

20,95522,285

18,90921,327

26,685

19,817

21,947

18,051

17,842

14,11913,512

15,057

11,06914,457

13,28512,080

10,113

9,021

8,761

9,216

④ NOI （①－②＋⑦）30,55036,662

23,87027,54835,30928,49728,30823,50823,35918,282

17,703

17,62913,137

19,733

15,27814,421

14,361

14,262

15,924

12,844⑤ Capital expenditure

4,813

5,416

286

871

1,569

3,481

1,701

900

-

145

2,958

2,987

1,702

249

790

220

8,250

1,556

3,683

-

⑥ NCF（④－⑤）

25,737

31,246

23,584

26,67733,74025,01526,60722,60823,35918,137

14,745

14,641

11,434

19,483

14,487

14,201

6,111

12,705

12,241

12,844

Property Number

Property Name

A51

A53

A54

A59

City House

Nishiwase da

Lexington

Tokyo

Cresent

SquareS hinbashi

MansionAkebonobashi

A61

A63

Towa City
Coop

BichselS hin-otsuka

Musashiseki

Ⅱ

A64

Towa City
Coop
S engencho

A65

Royal Park
Omachi

A66

Lexington

A71

Visconti

S quareHaginomachi

Kakuozan

A72

Lexington
S quareDaitabashi

A73

Lexington
S quare

A76

AMS
TOWER

HonjoAzumabashi

Minami 6-Jo

A77
Invoice S hin-

Neo
Prominence

Kobe
Residence

A78

A79

A80

A82

Cosmo Court

RevestRevestMotomachi

HonjinMatsubara

A83

A84

Alba

RevestNoritake

MeiekiS hinmachi

Minami

Revest Heian（Note 6)
number of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

15

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

7,118

75,73451,74236,55824,00957,222

25,59916,878

9,997

34,13718,75846,32068,84750,16938,37730,33028,822

26,94426,70523,8207,077

72,53648,33334,58523,01352,543

22,621

15,272

8,150

31,615

18,222

43,52359,06847,01636,96328,04825,925

24,68424,27722,640Rental revenues (Fixed rent)
Rental revenues (Variable rent) (Note 2)
Other revenue

41

3,197

3,409

1,973

995

4,678

2,978

1,606

1,847

2,522

536

2,797

9,778

3,152

1,414

2,282

2,896

2,260

2,428

1,180

3,969

21,10018,564

13,647

8,048

31,194

12,204

8,566

7,305

16,224

9,124

26,63625,083

20,976

20,281

16,184

15,503

13,505

13,472

11,713

Fac ility management fees (a)

933

5,959

4,093

3,993

2,172

15,342

4,989

1,881

2,780

2,231

1,932

7,543

7,839

3,407

5,398

5,285

3,871

3,115

3,193

2,497

（of whic h, repair c ost)

163

407

36

110

171

177

97

-

179

122

111

420

264

108

260

659

268

59

258

195

-

637

446

15

454

42

1,753

642

146

459

375

1,544

3,194

460

535

375

306

271

454

265

2,925

3,740

2,271

1,423

1,193

3,026

1,595

1,167

922

1,569

819

2,158

3,621

2,691

2,319

1,821

1,909

1,749

1,682

1,410

② Property related expenses( of whic h, utility expenses)
Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）

56

117

45

41

37

83

48

29

17

32

23

94

123

71

72

52

48

49

49

36

-

9,631

9,292

5,501

3,450

7,329

4,252

3,807

1,442

8,291

5,279

14,55010,812

11,798

10,243

7,570

7,262

7,071

7,051

6,513

Other expenses (d)

53

1,652

2,861

2,687

1,195

5,412

1,319

1,680

2,143

4,099

1,069

2,290

2,687

3,008

2,247

1,454

2,410

1,519

1,495

1,255

③ Rental inc ome（①－②）

3,148

54,63333,177

22,911

15,96026,027

13,395

8,312

2,692

17,913

9,633

19,683

43,76329,192

18,09514,146

13,31813,43913,232

12,107④ NOI （①－②＋⑦）

3,148

64,26542,47028,412

19,41133,357

17,647

12,1194,134

26,204

14,913

34,23454,57540,991

28,33921,716

20,581

20,51020,283

18,621⑤ Capital expenditure

-

2,531

2,141

2,271

11,992

8,640

557

-

474

3,584

182

3,118

2,089

403

2,315

2,319

345

1,223

1,650

1,613

3,148

61,73440,32926,141

7,418

24,717

17,08912,1193,660

22,61914,73031,11552,486

40,58726,023

19,397

20,235

19,286

18,63317,008⑥ NCF（④－⑤）(Note 1) Rent and common area fees are entered for residential, office building and retail facility. GOP is entered for hotel .
(Note 2) The variable rent for some properties is negative since a part of the variable rent calculation period strides across the end of the fiscal year.
(Note 3) Under this lease contract, "fixed rent plus total variable rent" is collected as rental business income. Rental busi ness income in GOP column.
(Note 4) Under this lease contract, “fixed rent plus total variable rent” is collected as rental business income.
(Note 5) Expenses related to hotel sales (personnel expenses, utilities expenses, advertisement expenses, etc.) (hereinafter referred to as "hotel expenses") shall be charged to expenses in the month following expiration month based on cash basis on lease contract For the property, for a month after
the acquisition, there will be a period during which GOP is calculated without deducting hotel expenses. Therefore, the GOP, NOI and GOP ratios in the project period including the acquisition date are higher than in normal cases.
(Note 6) Indicates the revenues for the period that INV owned the property(Note 7) Using an exchange rate at the time of transaction regarding ①-⑦. Other expenses for "The Westin Grand Cayman Seven Mile Beach Resort & Spa" includes the management fee of JPY4,096 thousand for two overseas hotels

36Property Income (2/4)(in ¥ thousand)
Property Number

A85

Property Name

Hamaotsu

A86

VendirS alvo S ala

Ekimaenumber of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

A87

A88

Excellente

Luna Court

Kagurazaka

Edobori

A89

A90

Winntage

Queen's

Kobe

Court

Motomachi

A91

Fukuzumi

A92

A93

A94

S ieteCorp

BelairHigashinotoin

Oimachi

A95

A96

A97

HERMITAGE Century Park

Prime Life

Minami-

Sannomiya

NANBA

S hinkawa

Tsukaguchi

Isogami Koe n

WEST

1-bankan

A98
Little RiverWest

Honmachi-Avenue

bashi

A99

A100

A101

A102

A103

A104

Prime Life

City Court

MikageKitaichijo

Lieto Court

Lieto Court

Royal Parks

Royal Parks

Mukojima

Nishi-Ojima

Momozaka

S hinden

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

34,98324,71720,015

21,204

22,39918,161

18,903

16,147

17,746

15,434

15,99918,277

13,471

14,743

12,624

66,46956,89950,076

161,353

216,531

32,062

22,40518,652

19,92821,947

16,98817,54415,035

16,622

14,43014,727

15,183

12,48914,151

12,56661,03653,71749,247

144,564

200,266

Rental revenues (Fixed rent)
Rental revenues (Variable rent) (Note 2)
Other revenue

2,920

2,312

1,363

1,275

451

1,172

1,359

1,111

1,124

1,004

1,272

3,094

982

591

58

5,432

3,181

828

16,78916,265

16,536

15,275

8,677

12,006

11,123

6,639

8,499

6,531

7,615

8,641

7,380

9,950

6,163

6,497

5,632

34,722

25,711

19,840112,663

116,595

5,123

4,565

2,074

3,317

2,588

1,365

2,493

2,040

2,156

2,579

2,406

2,925

1,710

1,513

1,267

6,935

5,292

4,149

52,666

29,712

134

218

232

482

202

10

303

107

80

78

800

142

250

70

-

196

324

191

770

1,373

( of whic h, utility expenses)

2,441

849

235

722

390

192

515

162

282

194

257

223

254

235

136

2,108

631

640

1,249

-

Tax and other public c harges (b)

1,969

1,549

775

1,207

1,594

745

944

697

990

855

1,001

858

567

961

771

2,586

2,490

2,149

7,678

14,016② Property related expenses
Fac ility management fees (a)（of whic h, repair c ost)

Insuranc e expenses (c )Deprec iation expenses（⑦）

66

41

25

35

43

24

31

19

31

22

27

37

19

25

21

146

77

60

223

436

7,278

5,551

4,290

5,273

5,911

3,358

3,832

2,751

3,377

3,501

3,448

4,420

2,264

2,894

3,075

22,905

15,691

12,36345,52471,922Other expenses (d)

2,098

3,567

1,511

2,172

985

1,144

1,197

1,021

1,059

1,681

496

1,709

1,601

1,102

497

2,147

2,158

1,118

6,570

509

③ Rental inc ome（①－②）

18,446

9,442

11,337

9,197

11,275

11,521

10,404

9,616

10,131

6,793

8,619

8,327

7,307

8,245

6,992

31,746

31,18830,235

48,68999,936④ NOI （①－②＋⑦）

25,724

14,993

15,627

14,471

17,187

14,880

14,237

12,367

13,508

10,294

12,067

12,747

9,572

11,14010,06754,652

46,87942,59894,214

171,858⑤ Capital expenditure

339

734

294

3,023

1,091

-

221

2,948

1,019

1,914

426

3,132

506

-

1,682

4,805

3,620

2,108

2,827

19,19525,385

14,25815,333

11,447

16,096

14,88014,0159,419

12,4898,380

11,641

9,614

9,065

11,1408,385

49,84643,25940,49091,387

152,662

B17

B18⑥ NCF（④－⑤）
Property Number

A106

Property Name

S easir
Minami-subtotal

S enjunumber of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

D01

D02

D03

D04

D05

MyS tays

Royal Parks

Lexington

AEON

Plaza

TOWN

HachimanS ukagawa

subtotal

Hotel

Hotel

Hotel

S hin-Hotel

MyS tays

MyS tays

MyS tays

Urayasu

MyS tays

Kanda

Asakusa

Kyoto-S hijo

Conference

MaihamaCenter

D06

D07

D08

Hotel

Hotel

Hotel

D09

MyS tays

MyS tays

MyS tays

Premier

Nagoya-S akaisuji-

DojimaS akaeHonmachi

D10

D11

D12

D13

Hotel
Hotel

Hotel

MyS tays

MyS tays

MyS tays

Fukuoka-

Yokohama

NipporiTenjin-

D14

D15

Hotel
Flexstay Inn

MyS taysFlexstay Inn

Flexstay Inn

Iidabashi

Ueno

S hinagawa

Tokiwadai

Inaricho

Minami

182

-

182

182

-

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

118,525

2,211,691

160,501

140,585

301,086

13,40519,98730,445

36,10632,29358,99841,786

13,29538,422

12,226

19,30017,1098,995

10,72435,160107,6122,036,711

130,901

140,585

271,486

35,16013,40519,98730,445

36,10632,29358,99841,786

13,29538,422

12,226

19,30017,1098,995

10,724

Rental revenues (Fixed rent)

12,00012,50029,78022,32022,04015,76021,90014,68013,74010,100

9,520

8,900

7,200

6,620

8,180

Rental revenues (Variable rent) (Note 2)

1,405

7,487

665

13,786

10,253

43,23819,886-1,384

24,682

2,126

9,780

8,209

1,795

4,104

26,980

Other revenue

10,913

174,979

29,600-29,600

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

75,919

1,076,324

79,077

93,398172,476

40,70732,007

102,826

66,57572,08076,051

65,38443,90249,48024,441

40,583

15,891

23,5199,071

11,260Fac ility management fees (a)24,554

312,762

43,964

56,124

100,089

10,876

10,271

30,276

11,31625,46818,541

28,761

14,521

4,671

8,822

19,489

-

9,910

311

-

（of whic h, repair c ost)

1,291

17,165

814

-

814

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

( of whic h, utility expenses)

1,127

35,84830,703-30,703

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Tax and other public c harges (b)5,728

120,792

11,563

7,015

18,578

4,966

3,713

11,223

8,316

3,661

12,413

4,395

6,720

4,282

1,770

5,357

4,441

1,465

1,662

3,405

② Property related expenses

Insuranc e expenses (c )Deprec iation expenses（⑦）

189

3,545

129

203

332

71

85

174

162

84

216

191

86

153

47

107

70

35

29

64

41,366524,835

22,59329,43852,031

24,283

17,41960,636

46,27442,35744,366

31,72822,06739,863

13,297

15,123

10,873

11,600

6,564

7,286

Other expenses (d)4,080

114,388

826

616

1,443

509

517

515

505

508

513

307

506

510

504

504

505

506

504

504

③ Rental inc ome（①－②）

42,606

1,135,366

81,42347,186

128,610-27,301-12,020-72,381-30,469-39,786-17,053-23,597-30,607-11,058-12,215-21,282

1,218-14,523

1,653

23,900④ NOI （①－②＋⑦）

83,972

1,660,202

104,016

76,625

180,642-3,017

5,399-11,744

15,8052,570

27,3128,130-8,53928,804

1,081-6,15812,092-2,922

8,217

31,186⑤ Capital expenditure

6,724

145,655

760

-

760

305

2,888

2,606

3,450

140

5,804

3,969

1,231

1,993

2,704

1,800

244

345

-

328

⑥ NCF（④－⑤）

77,2481,514,547

103,256

76,625

179,882-3,322

2,510-14,350

12,3552,430

21,5084,161-9,77026,811-1,622-7,958

11,848-3,2688,217

30,858(Note 1) Rent and common area fees are entered for residential, office building and retail facility. GOP is entered for hotel .
(Note 2) The variable rent for some properties is negative since a part of the variable rent calculation period strides across the end of the fiscal year.
(Note 3) Under this lease contract, "fixed rent plus total variable rent" is collected as rental business income. Rental busi ness income in GOP column.
(Note 4) Under this lease contract, “fixed rent plus total variable rent” is collected as rental business income.
(Note 5) Expenses related to hotel sales (personnel expenses, utilities expenses, advertisement expenses, etc.) (hereinafter referred to as "hotel expenses") shall be charged to expenses in the month following expiration month based on cash basis on lease contract For the property, for a month after
the acquisition, there will be a period during which GOP is calculated without deducting hotel expenses. Therefore, the GOP, NOI and GOP ratios in the project period including the acquisition date are higher than in normal cases.
(Note 6) Indicates the revenues for the period that INV owned the property(Note 7) Using an exchange rate at the time of transaction regarding ①-⑦. Other expenses for "The Westin Grand Cayman Seven Mile Beach Resort & Spa" includes the management fee of JPY4,096 thousand for two overseas hotels

37

Property Income (3/4)(in ¥ thousand)
Property Number

Property Name

D16

D17

Flexstay Inn
S ugamo

D18

D19

D20

D21

Hotel

Hotel
MyS tays
OtemaeMyS taysFlexstay Inn

Kiyosumi

Nakanobu P1 Nakanobu P2

Flexstay Inn

S hirakawa

D22

APA Hotel
YokohamaKannai

D23

D24

Hotel
MyS taysFlexstay Inn

Hakodate-

S hirogane

D25

Hotel

Hotel

MyS tays

MyS tays

HanedaGoryokaku

D26

D27

Hotel
MyS tays

Kameido P1

Ueno

D28

Hotel

Hotel
MyS tays

Shinbashi/

S himizu

Karasumoriguchi

Super Hotel（Note 3)
number of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

D30

MyS tays
Kameido P2

Iriyaguc hi

D29

Flexstay Inn
Higashi-Jujo

D31

D32

D33

D34

D35

Flexstay Inn

Hotel

Flexstay Inn

ComfortMyS tays

Kawasaki-

Hotel

Kawasaki-

Utsunomiya

KaizukaToyamaOgawac ho（Note 4)Flexstay Inn
Ekoda（Note 4)

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

10,898

9,421

11,612

13,086

4,197

216,599

18,06520,019111,581

54,922

19,044

31,79622,25039,426

8,888

19,247

21,57435,92815,35153,303

10,898

9,421

11,612

13,086

4,197

216,599

18,06520,019111,442

54,922

19,044

31,79622,24639,426

8,888

19,247

21,57435,92815,35153,303

Rental revenues (Fixed rent)

7,660

6,620

5,440

2,940

1,640

212,500

8,000

9,000

30,60029,80019,00019,00012,20039,426

7,400

12,6006,200

35,9285,000

20,260Rental revenues (Variable rent) (Note 2)

3,238

2,801

6,172

10,146

2,557

4,099

10,065

11,01980,84225,122

44

12,796

10,046

-

1,488

6,647

15,374-

10,351

33,043

-

-

-

-

-

-

-

-

139

-

-

-

4

-

-

-

-

-

-

-

15,84924,81618,084

5,519

3,177

88,98258,008

10,37667,02939,455

41,171

31,06133,038

9,036

12,33351,064

12,053

13,4697,094

32,982Other revenue② Property related expenses
Fac ility management fees (a)3,667

10,449

1,326

-

-

80

13,02083

115-

18,019

-

3,921

712

3,383

15,704

924

92

-

-

（of whic h, repair c ost)

-

-

-

-

-

80

-

-

115

-

-

-

-

702

-

-

-

92

-

-

( of whic h, utility expenses)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2,827

3,565

3,589

1,005

560

11,477

5,265

1,626

8,036

6,297

1,105

3,751

4,159

3,166

1,968

13,364

823

3,733

940

4,597

Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）

52

88

60

19

11

207

153

44

147

147

69

91

77

30

41

280

33

67

22

95

8,797

10,20912,603

3,989

2,102

76,71239,264

8,117

58,32232,602

21,57026,811

24,471

4,717

6,534

21,302

9,866

9,166

5,726

27,885

Other expenses (d)

503

503

503

504

503

504

304

504

408

407

406

406

407

407

405

413

405

409

404

404

③ Rental inc ome（①－②）-4,950-15,394-6,472

7,567

1,019

127,617-39,943

9,643

44,552

15,467-22,126734-10,787

30,389-3,445-31,817

9,520

22,458

8,257

20,320④ NOI （①－②＋⑦）

3,847-5,185

6,131

11,556

3,121

204,329-679

17,761

102,874

48,070-555

27,546

13,68435,107

3,088-10,514

19,387

31,624

13,984

48,205⑤ Capital expenditure

113

-

370

485

-

1,979

390

-

-

920

230

460

385

-

-

1,794

-

450

-

250

3,734

-5,185

5,761

11,071

3,121

202,350-1,07017,761

102,874

47,150-785

27,086

13,29935,107

3,088-12,308

19,387

31,174

13,98447,955

D43

D44

D47

D48

D49

D51

D52

D53

D54

D55

Hotel

Hotel

⑥ NCF（④－⑤）
Property Number

D36

D37

S uper Hotel
Property NameTokyo-JRTachikawa
Kitaguchi（Note 4)

number of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)
Rental revenues (Fixed rent)
Rental revenues (Variable rent) (Note 2)
Other revenue

D38

D39

D40

D41

S uper Hotel

Hotel

Comfort

ComfortJR Ueno-MyS tays

Hotel

Hotel

iriyaguchi

S hinsaibashi

Kurosaki

Maebashi（Note 4)（Note 4)

D42

D45

Hotel
ComfortMyS taysHotel

MyS tays

Hotel MyStays

Tsubamesanjo

Hotel Kitami

GotandaEpinard Nasu

Fukuoka

Hamamatsucho（Note 4)

D50
Hotel

Comfort HotelS tation（Note 4)

D46

Hotel

Tenjin

Hotel

Hotel

Takamatsu

Hotel MyStays

MyS tays

MyS tays

Tokyu REI

Premier

S hin Osaka

Kanazawa

Hotel

Hamamatsucho

ConferenceCenter（Note 4)Beppu

MyS tays

Kamenoi

Premier

Hotel

Omori

MyS tays

MyS tays

Art Hotel

S apporo

Yokohama

JoetsuS tation

Kannai（Note 4)

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

31,78727,275

13,81337,894

43,811

34,94930,300147,572

112,358

29,041

27,694

83,373100,066

74,19359,20851,334

95,99457,02837,5083,164

31,78727,275

13,81337,894

43,811

32,86130,300146,594

112,098

29,041

27,694

83,37375,50074,09559,20851,334

95,99457,02837,5083,164

31,78727,275

12,40037,894

43,811

32,86130,30090,90020,00029,40027,40039,00075,50035,80056,60040,80064,20036,00022,000

7,000

-

-

1,413

-

-

-

-

55,69492,098-358

294

44,373-38,295

2,608

10,534

31,79421,02815,508-3,835

-

-

-

-

-

2,088

-

978

260

-

-

-

24,566

98

-

-

-

-

-

-

13,092

10,03831,515

18,556

26,132

15,182

14,447

87,843625,195

67,71640,754

138,844

55,27337,318

94,11362,324

214,519

115,353

45,66791,328Fac ility management fees (a)

1,391

1,070

8,576

990

5,844

426

600

27,495

283,009

14,5292,345

12,37432,392-

46,645

1,611

57,206

46,0705,641

50,169（of whic h, repair c ost)

1,091

770

-

390

-

-

-

-

-

-

-

-

244

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

17,234

-

-

-

-

-

-

-

2,764

2,182

2,632

3,407

1,638

3,741

1,631

17,10427,446

7,327

6,919

13,7582,747

10,71011,656

14,90911,879

6,464

8,680

5,993

② Property related expenses( of whic h, utility expenses)
Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）

45

31

47

66

75

62

59

302

997

154

60

289

167

200

462

371

713

258

144

214

8,482

6,346

19,853

13,682

18,16010,538

11,74642,332

313,31345,29831,021

112,017

19,54726,002

34,92345,025

144,312

62,14830,79534,539Other expenses (d)

408

408

404

410

414

414

409

608

429

405

405

404

418

406

424

406

407

411

405

411

③ Rental inc ome（①－②）

18,694

17,236-17,701

19,337

17,67819,767

15,85359,728-512,836-38,674-13,059-55,471

44,79336,874-34,905-10,990-118,525-58,325-8,159-88,163④ NOI （①－②＋⑦）

27,177

23,582

2,151

33,02035,83830,30527,599102,061-199,523

6,624

17,96256,54664,34162,87718

34,03425,787

3,822

22,635-53,623⑤ Capital expenditure

-

-

1,752

670

2,152

2,678

6,450

1,690

249,479

128,328

148,079930

16,894

2,700

4,580

113,489

7,119

96,950450859

27,177

23,582399

32,35033,686

27,627

21,149100,371-449,002-121,704-130,117

55,61647,44660,176-4,561-79,454

18,668-93,127

22,185-54,482⑥ NCF（④－⑤）(Note 1) Rent and common area fees are entered for residential, office building and retail facility. GOP is entered for hotel .
(Note 2) The variable rent for some properties is negative since a part of the variable rent calculation period strides across the end of the fiscal year.
(Note 3) Under this lease contract, "fixed rent plus total variable rent" is collected as rental business income. Rental busi ness income in GOP column.
(Note 4) Under this lease contract, “fixed rent plus total variable rent” is collected as rental business income.
(Note 5) Expenses related to hotel sales (personnel expenses, utilities expenses, advertisement expenses, etc.) (hereinafter referred to as "hotel expenses") shall be charged to expenses in the month following expiration month based on cash basis on lease contract For the property, for a month after
the acquisition, there will be a period during which GOP is calculated without deducting hotel expenses. Therefore, the GOP, NOI and GOP ratios in the project period including the acquisition date are higher than in normal cases.
(Note 6) Indicates the revenues for the period that INV owned the property(Note 7) Using an exchange rate at the time of transaction regarding ①-⑦. Other expenses for "The Westin Grand Cayman Seven Mile Beach Resort & Spa" includes the management fee of JPY4,096 thousand for two overseas hotels

38Property Income (4/4)(in ¥ thousand)
Property Number

Property Name

D56

Art Hotel
Hirosaki City

number of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

D57

D58

D59

Hotel

Hotel

Hotel

MyS tays

MyS tays

MyS tays

Oita

GotandaTachikawa

D60

D61

D62

Hotel

Hotel

MyS tays

MyS tays

Premier

Premier

Akasaka

S apporo ParkHotel
MyS tays
Ueno East

D63

D64

D65

D66

Hotel

Hotel

MyS tays

MyS tays

Art Hotel

Midosuji

S apporo

Ishigakijima

Honmachi

Aspen

D67

D68

D69

Hotel

Hotel
MyS tays Fuji
Onsen Resort

D70

MyS tays

Otaru

Kanazawa

NiigataS tation

CastleD72

Hotel

Art Hotel

Hotel S onia

D71

D73

D74

Hotel

Hotel

MyS tays

Hotel Nord

MyS tays

Art Hotel

NagoyaOtaru

Kagoshima

Asahikawa

Nishiki

D75
Hotel
MyS tays

MyS tays

S apporo

Matsuyama

Tenmonkan

S usukino

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

2,997

14,07925,281

39,951

103,236

75,35625,172

20,609101,004

34,431

43,34430,074

22,11937,49227,00827,027

26,72315,00023,856

15,812

1,997

14,07925,281

39,951

103,236

75,35625,172

20,609101,004

34,431

43,34430,074

22,11937,49227,00827,026

26,722

15,00023,856

15,812

Rental revenues (Fixed rent)

3,500

9,800

18,75015,65059,20068,00018,00014,90084,50021,70026,80023,40014,30025,900

16,10021,10017,45915,00011,80014,000Rental revenues (Variable rent) (Note 2)-1,502

4,279

6,531

24,301

44,036

7,356

7,172

5,709

16,504

12,731

16,544

6,674

7,819

11,592

10,908

5,926

9,263

-

12,056

1,812

1,000

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

119,003

34,87815,71023,09894,258271,433

53,12256,811

150,380

172,600

166,382

112,491

48,702

130,318

40,894

77,41952,546282,155

92,23034,950

Other revenue② Property related expenses
Fac ility management fees (a)63,356

11,064

4,990

831

4,946

140,704

24,897

15,42575,370111,624

51,41843,756

26,76058,65914,08839,78325,506

209,908

40,004

18,782（of whic h, repair c ost)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

( of whic h, utility expenses)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

6

-

-

-

-

11,403

1,946

4,101

6,296

23,665

14,167

4,576

9,160

10,394

5,120

3,621

4,308

2,061

3,106

2,162

3,289

3,549

8,639

4,121

1,141

Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）

534

114

68

128

284

626

145

103

529

583

188

199

200

476

169

214

218

765

261

82

43,296

21,343

6,145

15,43764,957

115,523

23,09531,71863,681

54,863

110,747

63,822

19,27367,66824,06933,721

22,86862,43947,437

14,540

Other expenses (d)

411

409

404

404

403

411

408

404

404

408

406

404

407

407

404

409

403

402

404

403

③ Rental inc ome（①－②）-116,005-20,798

9,570

16,853

8,978-196,077-27,949-36,201-49,376-138,169-123,038-82,416-26,582-92,825-13,885-50,391-25,823-267,155-68,374-19,137④ NOI （①－②＋⑦）-72,708544

15,71632,29073,935-80,554-4,854-4,483

14,305-83,305-12,290-18,594-7,309-25,156

10,183-16,670-2,955-204,715-20,936-4,597⑤ Capital expenditure

6,295

585

289

-

-

380

230

-

1,062

4,936

2,131

-

3,203

130,656

1,145

323

-

500

615

-

-79,003-40

15,42732,29073,935-80,934-5,084-4,483

13,243-88,241-14,421-18,594-10,512-155,813

9,038-16,993-2,955-205,215-21,552-4,597⑥ NCF（④－⑤）
Property Number

Property Name

number of operating days
① Rental revenues
Rent, c ommon area fees / GOP (Note 1)

D76

D77

Hotel

Hotel

D78

MyS tays

MyS tays

S apporo

S apporo

Nakajima

Nakajima

Park

Park Annex

D79

D80

MyCUBE by
Flexstay Inn

MYS TAYS

S akuragicho

Asakusa
Kuramae

D81

D82

Hotel

Property Number

D83

Hotel

MyS tays

Hotel

Kagoshima

MyS taysTenmonkan

NayoroMyS tays

Art Hotel

PremierMorioka

subtotal

Property Name

Total

NaritaAnnex（Note 5)（Note 5)

182

182

182

182

182

182

168

168

-

-

11,253

6,478

18,281

3,376

11,112

16,191

233,20991,727

3,326,057

5,838,836
5,604,840

6,478

18,281

3,376

11,112

16,191

233,176

91,4803,296,641

12,400

7,400

5,000

2,900

5,200

6,600

23,454

19,6962,049,895

Rental revenues (Variable rent) (Note 2)-1,146-921

13,281

476

5,912

9,591

209,72171,783

1,246,746

-

-

-

-

-

-

33

247

29,416

233,996

47,21930,926

8,735

24,711

9,803

19,014

180,899

148,478

5,552,782

6,801,584

Fac ility management fees (a)Cayman S even S unshine S uites
Mile Beach

Resort(Note 7)

11,253② Property related expenses

D201

Total

Resort & S pa

Rental revenues (Fixed rent)

Other revenue

D200
Westin Grand

number of operating days
① Rental revenues
Rent, common area fees / GOP(Note 1)

Other revenue② Property related expenses(Note 7)
182

182

-

769,453

120,989

890,442

769,453

120,989

890,442000418,931

116,348535,279

22,863

15,988-

16,577

1,992

2,702

54,59180,1212,039,848

2,452,700

Facility management fees (a)

0

0

0

（of whic h, repair c ost)

-

-

-

-

-

-

-

-

3,487

21,467（of which, repair cost)

0

0

0

( of whic h, utility expenses)

-

-

-

-

-

-

-

-

17,241

83,793( of which, utility expenses)

0

0

0

3,497

937

738

1,879

916

1,403

-

-

459,468

598,839

Tax and other public charges (b)

0

0

0

195

67

44

64

76

50

984

413

15,842

19,721

Insurance expenses (c)87,48722,366

109,853

20,25913,528

7,547

5,785

6,414

14,453

124,925

67,5483,001,722

3,578,589

Depreciation expenses（⑦）

327,018

93,981

420,999

403

404

404

404

403

404

397

395

35,900151,732

Other expenses (d)

4,425

0

4,425

③ Rental inc ome（①－②）-35,965-24,447

9,546-21,335

1,309-2,82252,310-56,750-2,226,725-962,747③ Rental income（①－②）

350,5214,640

355,162④ NOI （①－②＋⑦）-15,706-10,919

17,094-15,549

7,723

11,630177,235

10,797774,9972,615,842④ NOI （①－②＋⑦）

677,540

98,622776,162⑤ Capital expenditure

-

310

230

930

-

445

18,8204,146

998,122

1,144,537⑤ Capital expenditure

403,017103,329506,347-15,706-11,229

16,863-16,479

7,723

11,185

158,415

6,651-223,125

1,471,304⑥ NCF（④－⑤）

274,522-4,706

269,815

Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）
Other expenses (d)⑥ NCF（④－⑤）(Note 1) Rent and common area fees are entered for residential, office building and retail facility. GOP is entered for hotel .
(Note 2) The variable rent for some properties is negative since a part of the variable rent calculation period strides across the end of the fiscal year.
(Note 3) Under this lease contract, "fixed rent plus total variable rent" is collected as rental business income. Rental busi ness income in GOP column.
(Note 4) Under this lease contract, “fixed rent plus total variable rent” is collected as rental business income.
(Note 5) Expenses related to hotel sales (personnel expenses, utilities expenses, advertisement expenses, etc.) (hereinafter referred to as "hotel expenses") shall be charged to expenses in the month following expiration month based on cash basis on lease contract For the property, for a month after
the acquisition, there will be a period during which GOP is calculated without deducting hotel expenses. Therefore, the GOP, NOI and GOP ratios in the project period including the acquisition date are higher than in normal cases.
(Note 6) Indicates the revenues for the period that INV owned the property(Note 7) Using an exchange rate at the time of transaction regarding ①-⑦. Other expenses for "The Westin Grand Cayman Seven Mile Beach Resort & Spa" includes the management fee of JPY4,096 thousand for two overseas hotels

39

Appraisal Value (1/5)(in ¥ thousand)
Property

Property Name

NumberAcquisitionPrice

As of the end of December 2019
Book Value

As of the end of June 2020

Appraisal Value Cap Rate

Book Value

Change (Note 1)

Appraisal Value Cap Rate

Appraisal Value

Appraiser

Cap Rate(Note 2)

A26

Nisshin Palacestage Daitabashi

1,251,830

1,097,952

1,230,000

4.6%

1,093,170

1,230,000

4.6%-- Assets R&D

A27

Nisshin Palacestage Higashi-Nagasaki

1,229,070

1,055,158

1,340,000

4.7%

1,046,198

1,360,000

4.7%

20,000- Assets R&D

A28

Growth Maison Gotanda

888,200

839,682

1,030,000

4.2%

835,007

1,030,000

4.2%-- Assets R&D

A29

Growth Maison Kameido

1,070,850

954,992

1,160,000

4.3%

949,642

1,160,000

4.3%-- Assets R&D

A30

Emerald House

1,505,161

1,329,078

1,430,000

4.5%

1,322,023

1,430,000

4.5%-- Assets R&D

A32

S uncrest S hakujii-Koen

1,088,979

1,060,380

1,110,000

4.6%

1,055,183

1,110,000

4.6%-- Assets R&D

A33

Growth Maison S hin-Yokohama

1,059,457

937,028

1,180,000

4.6%

932,368

1,180,000

4.6%-- Assets R&D

A34

Belle Face Ueno-Okachimachi

1,023,074

925,753

1,090,000

4.1%

921,196

1,090,000

4.1%-- Assets R&D

A35

Grand Rire Kameido

906,121797,595

1,010,000

4.5%

792,079

1,010,000

4.5%-- Assets R&D

A37

Growth Maison Yoga

795,986

729,008

775,000

4.2%

724,990784,000

4.2%

9,000

- Assets R&D

A38

Route Tachikawa

676,951

636,248

674,000

4.6%

635,015674,000

4.6%-- Assets R&D

A39

S hibuya-Honmachi Mansion

651,474

698,797

666,000

4.6%

699,212

668,000

4.6%

2,000

- Assets R&D

A40

City Heights Kinuta

646,337

649,831535,000

4.6%

649,465

557,000

4.6%

22,000- Assets R&D

A41

Acseeds Tower Kawaguchi-Namiki

620,893522,168

761,000

5.0%

517,142769,000

5.0%

8,000

- Assets R&D

A43

College S quare Machida589,553

561,049

540,000

5.2%

559,847

507,000

5.2%-33,000- Assets R&D

A44

Belair Meguro

589,004

549,548

627,000

4.0%

547,427

631,000

4.0%

4,000

- Assets R&D

A45

Wacore Tsunashima I

572,914514,031524,000

4.8%

518,033

527,000

4.8%

3,000

- Assets R&D

A46

Foros Nakamurabashi

566,980

505,033

585,000

4.4%

501,350

587,000

4.4%

2,000

- Assets R&D

A47

Growth Maison Kaijin

557,256

509,565

514,000

4.9%

506,085

519,000

4.9%

5,000

- Assets R&D

A48

College S quare Machiya

510,721441,605

557,000

4.4%

437,978

567,000

4.4%

10,000- Assets R&D

A51

City House Tokyo S hinbashi (Note 3)

2,520,000

2,269,720

3,650,000

3.9%

-

-

-

-

- JREI

A53

Nishiwaseda Cresent Mansion

1,880,000

1,889,784

2,780,000

3.9%

1,882,683

2,810,000

3.9%

30,000- Morii

A54

Lexington S quare Akebonobashi

1,450,000

1,294,522

1,970,000

3.9%

1,287,371

1,990,000

3.9%

20,000- Tanizawa

A59

Towa City Coop S hin-otsuka II

866,000

805,047

1,250,000

4.4%

801,818

1,250,000

4.4%-- JREI

A61

Bichsel Musashiseki

577,000

554,654828,000

4.1%

563,197

828,000

4.1%-- Morii

A63

Towa City Coop S engencho

1,110,000

1,006,986

1,440,000

5.0%

1,008,296

1,440,000

5.0%-- JREI

A64

Royal Park Omachi

415,000

386,181663,000

5.2%

382,486

675,000

5.2%

12,000- JREI

A65

Lexington S quare Haginomachi

330,000

274,002417,000

5.3%

270,194

417,000

5.3%-- JREI

A66

Visconti Kakuozan

255,000

230,883

286,000

4.8%

229,915

286,000

4.8%-- Tanizawa

A71

Lexington S quare Daitabashi

977,000

825,101

1,260,000

3.9%

820,395

1,260,000

3.9%-- Tanizawa

A72

Lexington S quare Honjo-Azumabashi

511,000

424,313653,000

4.0%

419,217653,000

4.0%-- Tanizawa

A73

AMS TOWER Minami 6-Jo

1,180,000

911,107

1,260,000

4.9%

899,675

1,250,000

4.9%-10,000- Tanizawa

A76

Neo Prominence

1,660,000

1,597,288

2,250,000

4.3%

1,588,565

2,270,000

4.3%

20,000- JREI

A77

Invoice S hin-Kobe Residence

1,260,000

1,134,867

1,470,000

4.5%

1,123,473

1,470,000

4.5%-- JREI(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Disposed during December 2019 fiscal period(Note 4) Includes JPY1,849million for acquisition of additional floor as of October 31 2017.
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels di rectly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreign exchange forward contract executedon July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for December 2019 FP and June 2020 FP are converted into JPY using the exchange rates of USD 1 = JPY 109.56 and JPY 107.74 respectively, which are the rates on closing date of each fiscal period .
(Note 5) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place40

Appraisal Value (2/5)(in ¥ thousand)
Property

Property Name

NumberAcquisitionPrice

As of the end of December 2019
Book Value

As of the end of June 2020

Appraisal Value Cap Rate

Book Value

Change (Note 1)

Appraisal Value Cap Rate

Appraisal Value

Appraiser

Cap Rate(Note 2)

A78

Cosmo Court Motomachi

973,000

864,888

1,130,000

4.4%

856,960

1,140,000

4.4%

10,000- JREI

A79

Revest Honjin

674,000

592,811845,000

5.1%

587,559

843,000

5.1%-2,000- JREI

A80

Revest Matsubara

657,000

583,818

841,000

4.7%

576,901

841,000

4.7%-- JREI

A82

Alba Noritake S hinmachi

608,000

533,987775,000

4.6%

528,140

775,000

4.6%-- JREI

A83

Revest Meieki Minami

597,000

523,549

810,000

4.4%

518,147

810,000

4.4%-- JREI

A84

Revest Heian

595,000

525,486

746,000

4.6%

520,586

746,000

4.6%-- JREI

A85

Vendir Hamaotsu Ekimae

581,000

504,201

784,000

5.4%

497,262795,000

5.4%

11,000- JREIA86

S alvo S ala

544,000

485,163

677,000

4.7%

480,346

677,000

4.7%-- JREI

A87

Excellente Kagurazaka

543,000

498,853

690,000

3.8%

494,857

696,000

3.8%

6,000

- JREI

A88

Luna Court Edobori

525,000

468,623

606,000

4.6%

466,373

606,000

4.6%-- JREI

A89

Winntage Kobe Motomachi

512,000

451,879

637,000

4.5%

447,059

639,000

4.5%

2,000

- JREI

A90

Queen's Court Fukuzumi

456,000

424,952

681,000

3.9%

421,593

686,000

3.9%

5,000

- JREI

A91

Corp Higashinotoin

446,000

403,952

539,000

4.4%

400,340

541,000

4.4%

2,000

- JREI

A92

Belair Oimachi

412,000

383,156

569,000

3.9%

383,352

569,000

3.9%-- JREI

A93

S iete Minami-Tsukaguchi

374,000

342,538

464,000

4.7%

340,180

464,000

4.7%-- JREI

A94

Prime Life S annomiya Isogami Koen

373,000

335,998

477,000

4.4%

334,410477,000

4.4%-- JREIA95

HERMITAGE NANBA WES T

355,000

319,419

467,000

4.6%

316,397

467,000

4.6%-- JREI

A96

Century Park S hinkawa 1-bankan

335,000

311,210466,000

5.0%

309,922

466,000

5.0%-- JREI

A97

West Avenue

331,000

309,776

337,000

4.8%

308,018

341,000

4.8%

4,000

- JREI

A98

Little River Honmachibashi

310,000

282,130

415,000

4.4%

279,236

415,000

4.4%-- JREI

A99

Prime Life Mikage

297,000

268,371

345,000

4.7%

266,978

345,000

4.7%-- JREI

A100

City Court Kitaichijo

1,782,000

1,708,725

2,140,000

4.7%

1,690,625

2,160,000

4.7%

20,000- JREI

A101

Lieto Court Mukojima

1,683,000

1,654,780

1,990,000

4.2%

1,642,708

2,000,000

4.2%

10,000- JREI

A102

Lieto Court Nishi-Ojima

1,634,000

1,600,506

1,920,000

4.0%

1,590,252

1,960,000

4.0%

40,000- JREI

A103

Royal Parks Momozaka

2,910,000

2,742,637

3,240,000

4.2%

2,699,939

3,230,000

4.2%-10,000- Morii

A104

Royal Parks S hinden

5,024,000

4,850,678

5,830,000

4.4%

4,797,951

5,840,000

4.4%

10,000- Morii

A106

Royal Parks S easir Minami-S enju

2,683,000

2,661,903

2,920,000

5.1%

2,627,260

2,920,000

5.1%-- JREI

55,485,818

53,552,976

68,856,000-

50,904,075

65,438,000-

232,000--30,000- Morii- Morii

S ubtotal of Residential
B17

Lexington Plaza Hachiman

3,280,000

3,022,592

3,700,000

5.4%

3,000,759

3,670,000

5.4%

B18

AEON TOWN S ukagawa

2,320,000

1,767,363

2,450,000

6.1%

1,737,924

2,450,000

6.1%-

5,600,000

4,789,956

6,150,000-

4,738,684

6,120,000--30,000

S ubtotal of Offices and Commercial Facilities-(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Disposed during December 2019 fiscal period(Note 4) Includes JPY1,849million for acquisition of additional floor as of October 31 2017.
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels di rectly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreign exchange forward contract executedon July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for December 2019 FP and June 2020 FP are converted into JPY using the exchange rates of USD 1 = JPY 109.56 and JPY 107.74 respectively, which are the rates on closing date of each fiscal period .
(Note 5) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place

-

-

41

Appraisal Value (3/5)(in ¥ thousand)
Property

Property Name

NumberAcquisitionPrice

As of the end of December 2019
Book Value

D01

Hotel MyS tays Kanda

2,851,000

2,945,584

D02

Hotel MyS tays Asakusa

2,584,000

D03

Hotel MyS tays Kyoto-S hijo

6,024,460

D04

MyS tays S hin- Urayasu Conference Center

D05

As of the end of June 2020

Appraisal Value Cap Rate

Book Value

5,070,000

4.1%

2,921,605

2,530,425

4,590,000

4.3%

5,828,619

11,700,000

4.5%

4,930,200

4,627,600

7,490,000

Hotel MyS tays Maihama

4,870,312

4,741,540

D06

Hotel MyS tays Premier Dojima

3,845,400

D07

Hotel MyS tays Nagoya-S akae

D08

Change (Note 1)

Appraisal Value Cap Rate
4,920,000

4.2%

2,515,893

4,410,000

5,770,589

10,500,000

4.7%

4,584,775

7,010,000

4.4%

3,738,474

7,090,000

2,958,000

2,624,635

Hotel MyS tays S akaisuji-Honmachi

2,514,820

D09

Hotel MyS tays Yokohama

D10

Appraisal Value

Appraiser

Cap Rate-150,000

0.1pt JREI

4.4%

-180,000

0.1pt JREI

4.7%

-1,200,000

0.2pt JREI

7,200,000

4.9%-290,000

0.2pt JREI

4,699,322

6,770,000

4.6%-240,000

0.2pt JREI

4.2%

3,699,912

6,810,000

4.4%-280,000

0.2pt JREI

5,890,000

4.9%

2,596,876

5,530,000

5.2%-360,000

0.3pt JREI

2,361,113

4,980,000

4.5%

2,340,277

4,220,000

4.7%-760,000

0.2pt JREI

2,119,900

2,338,046

4,060,000

5.4%

2,300,176

3,890,000

5.6%-170,000

0.2pt JREI

Hotel MyS tays Nippori

1,898,540

1,800,133

2,580,000

4.4%

1,789,539

2,510,000

4.5%-70,000

0.1pt JREI

D11

Hotel MyS tays Fukuoka-Tenjin-Minami

1,570,520

1,471,438

5,900,000

4.4%

1,458,114

5,570,000

4.7%-330,000

0.3pt JREI

D12

Flexstay Inn Iidabashi

1,381,660

1,352,174

2,160,000

4.2%

1,341,544

2,130,000

4.2%-30,000- JREI

D13

Hotel MyS tays Ueno Inaricho

1,331,960

1,243,086

2,060,000

4.2%

1,231,831

2,010,000

4.3%-50,000

0.1pt JREI

D14

Flexstay Inn S hinagawa

1,242,500

1,200,440

2,040,000

4.3%

1,193,876

1,980,000

4.4%-60,000

0.1pt JREI

D15

Flexstay Inn Tokiwadai

1,242,500

1,204,280

2,260,000

4.5%

1,197,321

2,140,000

4.7%-120,000

0.2pt JREI

D16

Flexstay Inn S ugamo

1,192,800

1,117,328

2,360,000

4.3%

1,108,643

2,260,000

4.5%-100,000

0.2pt JREI

D17

Hotel MyS tays Otemae

1,192,800

1,143,327

3,260,000

4.8%

1,133,117

2,920,000

5.0%-340,000

0.2pt JREI

D18

Hotel MyS tays Kiyosumi S hirakawa

749,476

900,658

1,560,000

4.4%

888,425

1,500,000

4.5%-60,000

0.1pt JREI

D19

Flexstay Inn Nakanobu P1

589,442565,015

850,500

4.4%

561,511803,000

4.7%-47,500

0.3pt JREI

D20

Flexstay Inn Nakanobu P2

283,290

286,142

409,500

4.4%

284,039

387,000

4.7%-22,500

0.3pt JREID21

APA Hotel Yokohama-Kannai

8,350,000

7,681,804

9,950,000

4.2%

7,607,071

9,930,000

4.2%-20,000- JREI

D22

Hotel MyS tays Hakodate-Goryokaku

2,792,000

2,811,142

4,000,000

5.1%

2,772,269

3,900,000

5.2%-100,000

0.1pt JREI

D23

Flexstay Inn S hirogane

2,119,000

2,091,902

2,420,000

4.3%

2,083,784

2,360,000

4.4%-60,000

0.1pt JREI

D24

Hotel MyS tays Haneda

7,801,000

7,301,871

8,820,000

4.0%

7,243,549

8,590,000

4.1%-230,000

0.1pt JREI

D25

Hotel MyS tays Kameido P1

5,594,000

5,377,817

7,560,000

4.4%

5,346,135

7,370,000

4.5%-190,000

0.1pt JREI

D26

Hotel MyS tays Ueno Iriyaguchi

3,821,000

3,687,443

3,850,000

4.4%

3,666,102

3,760,000

4.5%-90,000

0.1pt JREI

D27

Hotel MyS tays Kameido P2

3,742,000

3,584,557

5,110,000

4.3%

3,558,205

4,930,000

4.5%-180,000

0.2pt JREI

D28

Hotel MyS tays S himizu

2,198,000

2,139,342

2,460,000

5.3%

2,115,256

2,380,000

5.5%-80,000

0.2pt JREI

D29

S uper Hotel S hinbashi/ Karasumoriguchi

1,624,000

1,590,074

1,940,000

3.6%

1,585,357

1,940,000

3.6%-- JREI

D30

Flexstay Inn Higashi-Jujo

1,277,000

1,275,908

1,340,000

4.6%

1,269,373

1,300,000

4.7%-40,000

0.1pt JREI

D31

Hotel MyS tays Utsunomiya

1,237,000

1,232,877

2,130,000

5.1%

1,213,368

2,000,000

5.4%-130,000

0.3pt JREI

D32

Flexstay Inn Kawasaki-Kaizuka

980,000

910,935

1,170,000

4.6%

901,068

1,110,000

4.8%-60,000

0.2pt JREI

D33

Comfort Hotel Toyama

979,000

919,075

1,160,000

5.0%

910,358

1,160,000

5.0%-- JREI

D34

Flexstay Inn Kawasaki-Ogawacho

906,000

883,321912,000

4.5%

877,595

890,000

4.6%-22,000

0.1pt JREI

(Note 2)

(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Disposed during December 2019 fiscal period(Note 4) Includes JPY1,849million for acquisition of additional floor as of October 31 2017.
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels di rectly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreign exchange forward contract executedon July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for December 2019 FP and June 2020 FP are converted into JPY using the exchange rates of USD 1 = JPY 109.56 and JPY 107.74 respectively, which are the rates on closing date of each fiscal period .
(Note 5) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place

42

Appraisal Value (4/5)(in ¥ thousand)
Property

Property Name

NumberAcquisitionPrice

As of the end of December 2019
Book Value

As of the end of June 2020

Appraisal Value Cap Rate

Book Value

Change (Note 1)

Appraisal Value Cap Rate

Appraisal Value

Appraiser

Cap Rate(Note 2)

D35

Flexstay Inn Ekoda

5,069,000

4,858,198

4,640,000

4.7%

4,830,563

4,580,000

4.7%-60,000- JREI

D36

S uper Hotel Tokyo-JR Tachikawa Kitaguchi

1,170,000

1,105,875

1,270,000

4.2%

1,097,393

1,260,000

4.2%-10,000- Daiwa

D37

S uper Hotel JR Ueno-iriyaguchi

1,130,000

1,083,604

1,250,000

3.7%

1,077,258

1,210,000

3.8%-40,000

0.1pt Daiwa

D38

Hotel MyS tays S hinsaibashi

3,160,000

3,044,044

2,950,000

4.8%

3,025,942

2,720,000

4.9%-230,000

0.1pt JREI

D39

Comfort Hotel Kurosaki

1,148,000

1,064,232

1,250,000

5.1%

1,051,220

1,250,000

5.1%-- Daiwa

D40

Comfort Hotel Maebashi

1,128,000

1,034,861

1,160,000

4.7%

1,019,070

1,160,000

4.7%-- Daiwa

D41

Comfort Hotel Tsubamesanjo

1,010,000

945,595

1,100,000

5.1%

937,735

1,100,000

5.1%-- Daiwa

D42

Comfort Hotel Kitami

851,000

788,160

926,000

5.3%

782,863926,000

5.3%-- Daiwa

D43

Hotel MyS tays Gotanda S tation （Note 4）

26,523,000

26,392,386

25,800,000

4.8%

26,351,744

23,900,000

4.9%-1,900,000

0.1pt Morii

D44

Hotel Epinard Nasu

20,981,000

19,585,569

23,500,000

5.8%

19,521,735

22,900,000

5.9%-600,000

0.1pt Morii

D45

Hotel MyS tays Fukuoka Tenjin

8,059,000

7,792,713

8,710,000

4.7%

7,875,742

8,110,000

4.8%-600,000

0.1pt Morii

D46

Hotel MyS tays Hamamatsucho

7,959,000

7,793,216

6,890,000

4.5%

7,910,273

6,220,000

4.6%-670,000

0.1pt Morii

D47

Hotel MyS tays Premier Kanazawa

13,761,000

13,023,306

14,200,000

5.2%

12,912,219

12,800,000

5.3%-1,400,000

0.1pt Morii

D48

Takamatsu Tokyu REI Hotel

2,139,000

2,122,033

2,270,000

5.0%

2,119,379

2,260,000

5.0%-10,000

D49

Hotel MyS tays Premier Hamamatsucho

8,000,000

8,005,446

10,700,000

4.1%

7,982,144

10,300,000

4.2%-400,000

0.1pt JREI

D50

Hotel MyS tays S hin Osaka Conference Center

13,068,000

12,952,218

13,500,000

4.6%

12,921,875

12,800,000

4.8%-700,000

0.2pt Tanizawa

D51

Hotel MyS tays Premier Omori

9,781,000

9,699,677

10,200,000

4.4%

9,768,141

9,620,000

4.6%-580,000

0.2pt Tanizawa

D52

Beppu Kamenoi Hotel

8,870,000

8,280,664

9,180,000

6.0%

8,143,471

8,670,000

6.3%-510,000

0.3pt Tanizawa

D53

Hotel MyS tays S apporo S tation

7,880,000

7,715,189

8,430,000

4.5%

7,749,991

8,180,000

4.7%-250,000

0.2pt Tanizawa

D54

Hotel MyS tays Yokohama Kannai

5,326,000

5,235,214

5,540,000

4.4%

5,204,868

5,250,000

4.6%-290,000

0.2pt Tanizawa

D55

Art Hotel Joetsu

2,772,000

2,728,814

2,810,000

5.8%

2,695,133

2,690,000

6.1%-120,000

0.3pt Tanizawa

D56

Art Hotel Hirosaki City

2,723,000

2,644,738

2,770,000

5.9%

2,607,736

2,660,000

6.2%-110,000

0.3pt Tanizawa

D57

Hotel MyS tays Oita

1,604,000

1,550,329

1,640,000

5.7%

1,529,570

1,560,000

6.0%-80,000

0.3pt Tanizawa

D58

Hotel MyS tays Gotanda

4,068,000

4,067,744

4,140,000

4.2%

4,061,888

3,920,000

4.4%-220,000

0.2pt Tanizawa

D59

Hotel MyS tays Tachikawa

3,257,000

3,232,718

3,380,000

4.3%

3,217,281

3,330,000

4.3%-50,000

D60

Hotel MyS tays Premier Akasaka

20,691,000

20,542,965

23,900,000

3.7%

20,478,007

23,200,000

3.8%-700,000

0.1pt JREI

D61

Hotel MyS tays Premier S apporo Park

16,731,000

16,486,544

17,100,000

4.6%

16,371,401

16,200,000

4.8%-900,000

0.2pt Tanizawa

D62

Hotel MyS tays Ueno East

5,286,000

5,236,093

5,390,000

4.2%

5,213,228

5,110,000

4.4%-280,000

0.2pt Tanizawa

D63

Hotel MyS tays Midosuji Honmachi

5,039,000

4,966,212

4,980,000

4.2%

4,934,493

4,130,000

4.4%-850,000

0.2pt JREI

D64

Hotel MyS tays S apporo Aspen

15,543,000

15,517,742

15,700,000

4.6%

15,455,122

14,900,000

4.8%-800,000

0.2pt Tanizawa

D65

Art Hotel Ishigakijima

9,731,000

9,706,914

9,830,000

5.0%

9,656,986

9,290,000

5.3%-540,000

0.3pt JREI

D66

Hotel MyS tays Fuji Onsen Resort

9,405,000

9,323,700

10,100,000

5.1%

9,215,083

9,750,000

5.3%-350,000

0.2pt JREI

D67

Hotel S onia Otaru

5,930,000

5,889,176

5,990,000

5.1%

5,825,354

5,640,000

5.4%-350,000

0.3pt Tanizawa

D68

Hotel MyS tays Kanazawa Castle

5,682,000

5,679,868

5,740,000

5.1%

5,663,798

5,410,000

5.4%-330,000

0.3pt Tanizawa- Daiwa- Daiwa(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Disposed during December 2019 fiscal period(Note 4) Includes JPY1,849million for acquisition of additional floor as of October 31 2017.
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels di rectly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreign exchange forward contract executedon July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for December 2019 FP and June 2020 FP are converted into JPY using the exchange rates of USD 1 = JPY 109.56 and JPY 107.74 respectively, which are the rates on closing date of each fiscal period .
(Note 5) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place

43

Appraisal Value (5/5)(in ¥ thousand)
Property

Property Name

NumberAcquisitionPrice

As of the end of December 2019
Book Value

As of the end of June 2020

Appraisal Value Cap Rate

Book Value

Change (Note 1)

Appraisal Value Cap Rate

Appraisal Value

Appraiser

Cap Rate(Note 2)

D69

Art Hotel Niigata S tation

5,524,000

5,480,972

5,590,000

5.3%

5,543,960

5,330,000

5.6%-260,000

0.3pt Tanizawa

D70

Hotel MyS tays Nagoya Nishiki

5,197,000

5,185,330

5,260,000

4.3%

5,162,405

5,110,000

4.4%-150,000

0.1pt Morii

D71

Hotel Nord Otaru

4,296,000

4,279,772

4,340,000

5.1%

4,246,373

4,090,000

5.4%-250,000

0.3pt Tanizawa

D72

Hotel MyS tays Kagoshima Tenmonkan

3,445,000

3,436,087

3,540,000

4.9%

3,413,218

3,420,000

5.0%-120,000

0.1pt Daiwa

D73

Art Hotel Asahikawa

3,197,000

3,165,306

3,250,000

5.3%

3,103,366

3,050,000

5.6%-200,000

0.3pt Tanizawa

D74

Hotel MyS tays Matsuyama

3,098,000

3,068,073

3,190,000

5.1%

3,021,251

3,170,000

5.3%-20,000

0.2pt Daiwa

D75

Hotel MyS tays S apporo S usukino

3,059,000

3,053,272

3,090,000

4.7%

3,038,731

2,970,000

4.8%-120,000

0.1pt Morii

D76

Hotel MyS tays S apporo Nakajima Park

2,118,000

2,113,216

2,140,000

4.7%

2,092,956

2,060,000

4.8%-80,000

0.1pt Morii

D77

Hotel MyS tays S apporo Nakajima Park Annex

1,584,000

1,579,427

1,600,000

4.8%

1,566,209

1,520,000

5.0%-80,000

0.2pt Tanizawa

D78

Flexstay Inn S akuragicho

1,425,000

1,424,654

1,470,000

4.3%

1,417,337

1,450,000

4.3%-20,000- Daiwa

D79

MyCUBE by MYS TAYS Asakusa Kuramae

1,287,000

1,289,411

1,350,000

4.0%

1,284,555

1,280,000

4.1%-70,000

0.1pt Daiwa

D80

Hotel MyS tays Kagoshima Tenmonkan Annex

1,168,000

1,167,877

1,210,000

5.0%

1,161,463

1,190,000

5.0%-20,000- Daiwa

D81

Hotel MyS tays Nayoro

957,000

950,473

969,000

5.5%

936,465

932,000

5.6%-37,000

0.1pt Morii

D82

Hotel MyS tays Premier Narita

10,593,000

-

-

-

10,521,990

10,100,000

4.9%

-

- Tanizawa

D83

Art Hotel Morioka

5,643,000---

5,599,913

5,400,000

5.3%-- Morii

D200

Westin Grand Cayman S even Mile Beach Resort & S pa (Note 5)

30,061,308

29,701,934

35,585,088

8.3%

29,777,933

31,158,408

8.3%-4,426,680- CBRE

D201

S unshine S uites Resort (Note 5)

5,842,674

5,740,467

6,431,172

8.8%

5,749,814

5,462,418

8.8%-968,754- CBRES ubtotal of Hotels

432,763,563

407,240,188

482,093,260-

421,613,565

470,778,826--26,814,434

-

-

Total

493,849,381

465,583,121

557,099,260-

477,256,324

542,336,826--26,612,434--(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Disposed during December 2019 fiscal period(Note 4) Includes JPY1,849million for acquisition of additional floor as of October 31 2017.
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels di rectly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreign exchange forward contract executedon July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for December 2019 FP and June 2020 FP are converted into JPY using the exchange rates of USD 1 = JPY 109.56 and JPY 107.74 respectively, which are the rates on closing date of each fiscal period .
(Note 5) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place

44Portfolio Properties (1/4)
P roperty
Number

P roperty Name

Address

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

A26
A27
A28
A29
A30
A32
A33
A34
A35
A37
A38
A39
A40
A41
A43
A44
A45
A46
A47
A48
A53
A54
A59
A61
A63
A64
A65
A66
A71
A72
A73
A76
A77
A78
A79
A80
A82
A83
A84
A85
A86
A87
A88
A89
A90
A91

Nisshin Palac estage Daitabashi
Nisshin Palac estage Higashi-Nagasaki
Growth Maison Gotanda
Growth Maison Kameido
Emerald House
S unc rest S hakujii-Koen
Growth Maison S hin-Yokohama
Belle Fac e Ueno-Okac himac hi
Grand Rire Kameido
Growth Maison Yoga
Route Tac hikawa
S hibuya-Honmac hi Mansion
City Heights Kinuta
Ac seeds Tower Kawaguc hi-Namiki
College S quare Mac hida
Belair Meguro
Wac ore Tsunashima I
Foros Nakamurabashi
Growth Maison Kaijin
College S quare Mac hiya
Nishiwaseda Cresent Mansion
Lexington S quare Akebonobashi
Towa City Coop S hin-otsuka II
Bic hsel Musashiseki
Towa City Coop S engenc ho
Royal Park Omac hi
Lexington S quare Haginomac hi
Visc onti Kakuozan
Lexington S quare Daitabashi
Lexington S quare Honjo-Azumabashi
AMS TOWER Minami 6-Jo
Neo Prominenc e
Invoic e S hin-Kobe Residenc e
Cosmo Court Motomac hi
Revest Honjin
Revest Matsubara
Alba Noritake S hinmac hi
Revest Meieki Minami
Revest Heian
Vendir Hamaotsu Ekimae
S alvo S ala
Exc ellente Kagurazaka
Luna Court Edobori
Winntage Kobe Motomac hi
Queen's Court Fukuzumi
Corp Higashinotoin

S uginami-ku, Tokyo
Toshima-ku, Tokyo
S hinagawa-ku, Tokyo
Koto-ku, Tokyo
Itabashi-ku, Tokyo
Nerima-ku, Tokyo
Yokohama, Kanagawa
Taito-ku, Tokyo
Koto-ku, Tokyo
S etagaya-ku, Tokyo
Tac hikawa, TokyoS hibuya-ku, Tokyo
S etagaya-ku, Tokyo
Kawaguc hi, S aitama
Mac hida, Tokyo
Meguro-ku, Tokyo
Yokohama, Kanagawa

Nerima-ku, Tokyo
Funabashi, Chiba
Arakawa-ku, Tokyo
S hinjuku-ku, Tokyo
S hinjuku-ku, Tokyo
Toshima-ku, Tokyo
Nerima-ku, Tokyo
Yokohama, Kanagawa
S endai, Miyagi
Se ndai, Miyagi

Nagoya, Aic hi
S uginami-ku, TokyoS umida-ku, Tokyo
S apporo, Hokkaido
Kita-ku, Tokyo
Kobe, Hyogo
Kobe, Hyogo
Nagoya, Aic hi
Nagoya, Aic hi
Nagoya, Aic hi
Nagoya, Aic hi
Nagoya, Aic hi
Otsu, S higa
Osaka, Osaka
S hinjuku-ku,Tokyo
Osaka, Osaka
Kobe, Hyogo
Koto-ku, Tokyo
Kyoto, Kyoto

Jul 28, 2005
Jul 28, 2005
Jan 30, 2006
Mar 30, 2006
Aug 1, 2006
Aug 3, 2006
Aug 3, 2006
Aug 1, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 1, 2006
Aug 1, 2006
Aug 3, 2006
Aug 3, 2006
Aug 1, 2006
Aug 3, 2006
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012

Dec 1992
Mar 1989
Jul 2005
Oc t 2005
Feb 1995
Mar 1990
Mar 2006
Feb 2006
Mar 2006
Mar 2006
Mar 1997
Dec 1986
Mar 1983
Feb 2006
Mar 1984
Oc t 2005
Feb 1991
S ep 2001
Oc t 1993
Mar 2006
Jul 1987
Dec 2004
May 1993
Feb 1992
Oc t 1992
Feb 1993
Aug 2005
S ep 2003
Nov 2006
Oc t 2006
Feb 2007
Apr 1994
Jan 2007
Mar 2007
Mar 2007
Mar 2007
Nov 2006
Feb 2007
Nov 2006
Feb 2007
Jan 2007
Jan 2007
Feb 2004
May 2007
S ep 2006
Feb 2004-

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

1,251
1,229
888
1,070
1,505
1,088
1,059
1,023
906
795
676
651
646
620
589
589
572
566
557
510
1,880
1,450
866
577
1,110
415
330
255
977
511
1,180
1,660
1,260
973
674
657
608
597
595
581
544
543
525
512
456
446

0.3
0.2
0.2
0.2
0.3
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.4
0.3
0.2
0.1
0.2
0.1
0.1
0.1
0.2
0.1
0.2
0.3
0.3
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1

Rentable
Unit(Note 4)

98
60
48
66
96
29
68
64
72
39
24
25
19
57
62
25
50
37
34
43
69
88
58
70
154
51
39
8
43
33
120
52
81
82
80
70
64
61
40
81
54
33
50
57
25
42

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)1771.132681.941051.50
1367.962152.313029.16
1858.44
1351.111562.261015.34
1368.57
1167.50
1235.931210.74
1047.75557.05907.46815.772040.27871.354310.77
1987.881627.131220.24
3426.36
1929.591528.58705.751430.64784.744460.563574.702773.712310.49
1933.80
1955.40
1731.68
1634.60
1554.03
2670.66
1428.12701.921185.50
1433.35
765.181029.05

1702.362591.89
1051.501325.442080.642965.72
1776.68
1268.06
1562.26
989.581368.57
1167.50
1235.931168.461047.75557.05889.51744.58
1973.84871.354310.77
1920.68
1437.771220.243029.83
1821.35
1292.29536.381238.55784.744188.493516.28
2617.832285.38
1764.64
1611.911586.58
1480.071429.032493.841189.17701.921089.82
1385.61738.89979.09

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

96.1
96.6
100.0
96.9
96.7
97.9
95.6
93.9
100.0
97.5
100.0
100.0
100.0
96.5
100.0
100.0
98.0
91.3
96.7
100.0
100.0
96.6
88.4
100.0
88.4
94.4
84.5
76.0
86.6
100.0
93.9
98.4
94.4
98.9
91.3
82.4
91.6
90.5
92.0
93.4
83.3
100.0
91.9
96.7
96.6
95.1

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indic ate the order of acquisition dates and properties with thesame acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Ac quisition price of "Sheraton Grande Tokyo Bay Hotel" iscalculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying asse t. For "The Westin Grand Cayman Seven
Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreignexchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and nursing homes which are counted as one unit by each compartment(Note 5) For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

45

Portfolio Properties (2/4)
P roperty
Number

P roperty Name

Address

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

A92
A93
A94
A95
A96
A97
A98
A99
A100
A101
A102
A103
A104
A106

S hinagawa-ku, Tokyo
Amagasaki, Hyogo
Kobe Hyogo
Osaka, Osaka
Nagoya, Aic hi
Kunitac hi, Tokyo
Okasa, Osaka
Kobe, Hyogo
S apporo, Hokkaido
S umida-ku, Tokyo
Koto-ku, Tokyo
Okasa, Osaka
Adac hi-ku, Tokyo
Arakawa-ku, Tokyo

D01
D02
D03
D04
D05
D06
D07
D08

Belair Oimac hi
S iete Minami-Tsukaguc hi
Prime Life S annomiya Isogami Koen
HERMITAGE NANBA WES T
Century Park S hinkawa 1-bankan
West Avenue
Little River Honmac hibashi
Prime Life Mikage
City Court Kitaic hijo
Lieto Court Mukojima
Lieto Court Nishi-Ojima
Royal Parks Momozaka
Royal Parks S hinden
Royal Parks S easir Minami-S enju
S ubtotal of Residential
Lexington Plaza Hac himan
AEON TOWN S ukagawa
S ubtotal of Commerc ial Fac ilities
Hotel MyS tays Kanda
Hotel MyS tays Asakusa
Hotel MyS tays Kyoto-S hijo
MyS tays S hin- Urayasu Conferenc e Center
Hotel MyS tays Maihama
Hotel MyS tays Premier Dojima
Hotel MyS tays Nagoya-S akae
Hotel MyS tays S akaisuji-Honmac hi

D09
D10
D11
D12
D13
D14
D15
D16
D17
D18
D19
D20
D21
D22
D23
D24
D25
D26
D27

B17
B18

S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jan 22, 2016
Mar 31, 2016
Mar 14, 2017

Apr 2006
Jan 2007
Nov 2006
Dec 2006
S ep 2001
Oc t 1991
Jun 2007
Jan 2007
Nov 2007
Feb 2008
Feb 2008
Jun 2007Jun 2007
Aug 2006-

Sukagawa, Fukushima

Feb 1, 2010
Feb 1, 2010

Dec 2005
Oc t 2005-

Chiyoda-ku, TokyoS umida-ku, Tokyo
Kyoto, Kyoto
Urayasu, Chiba
Urayasu, Chiba
Osaka, Osaka
Nagoya, Aic hi
Osaka, OsakaMay 23, 2014
May 23, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014

Dec 2005
Jan 1990
Jan 2008
Mar 2009
Jun 2005
Aug 1990
Nov 1979
Jul 2008

May-Aug 20162012 Nov-2012 Dec
May-Jul 2018
Feb-Mar, May 2018
Jan-Apr, May-Jun 20182018 Jan-2018 Mar, 2018
Apr-Jun 2013-

Hotel MyS tays Yokohama

Yokohama, Kanagawa

Jul 17, 2014

Oc t 1974

Hotel MyS tays Nippori
Hotel MyS tays Fukuoka-Tenjin-Minami
Flexstay Inn Iidabashi
Hotel MyS tays Ueno Inaric ho
Flexstay Inn S hinagawa
Flexstay Inn Tokiwadai
Flexstay Inn S ugamo
Hotel MyS tays Otemae
Hotel MyS tays Kiyosumi S hirakawa
Flexstay Inn Nakanobu P1
Flexstay Inn Nakanobu P2
APA Hotel Yokohama-Kannai
Hotel MyS tays Hakodate-Goryokaku
Flexstay Inn S hirogane
Hotel MyS tays Haneda
Hotel MyS tays Kameido P1
Hotel MyS tays Ueno Iriyaguc hi
Hotel MyS tays Kameido P2

Arakawa-ku, Tokyo
Fukuoka, Fukuoka
S hinjuku-ku, Tokyo
Taito-ku, Tokyo
S hinagawa-ku, Tokyo
Itabashi-ku, Tokyo
Toshima-ku, Tokyo
Osaka, Osaka
Koto-ku, Tokyo
S hinagawa-ku, Tokyo
S hinagawa-ku, Tokyo
Yokohama, Kanagawa
Hakodate, Hokkaido
Minato-ku, Tokyo
Ota-ku, Tokyo
Koto-ku, Tokyo
Taito-ku, Tokyo
Koto-ku, Tokyo

Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Feb 6, 2015
Feb 6, 2015
Feb 6, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015

Apr 1987
Feb 2008
Dec 1990
Dec 1986
Oc t 1986
Dec 1989
Jan 1992
Dec 1986
May 1992
S ep 1986
Mar 1989
Apr 2005
Feb 2008
Dec 1984
Apr 2001
Mar 1991
Nov 1985
Mar 1991

S endai, Miyagi

Jun-Nov 2006, May-Jul
2019
Feb-Mar 2011
Nov-Dec 20122011 Nov-2011 Dec
Mar 2013
Mar 2013
Dec 2012-Jan 2013
Jun-S ep 2019
S ep-Dec 2017
Feb-Apr 2018
Mar 2013
Nov 2013-Aug 2014
Jan-Mar 2012
Jan-Mar 2014
Jan-Mar 2013

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

Rentable
Unit(Note 4)

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)

412
374
373
355
335
331
310
297
1,782
1,683
1,634
2,910
5,024
2,683
58,005
3,280
2,320
5,600
2,851
2,584
6,024
4,930
4,870
3,845
2,958
2,514

0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.4
0.3
0.3
0.6
1.0
0.5
11.6
0.7
0.5
1.1
0.6
0.5
1.2
1.0
1.0
0.8
0.6
0.5

26
40
32
21
44
40
31
28
127
82
91
147
248
113
3,777
18
1
19
126
161
225
175
90
153
279
191

530.601020.86789.12992.761477.62794.80974.81
761.185230.182940.202048.28
8776.26
15797.29
6496.86131152.79
8419.1518440.58
26859.73
2585.723327.38
7241.516232.30
2456.369445.329064.714188.83530.601020.86789.12992.761342.94755.06974.81
761.185012.762910.992027.648579.29
15797.29
6242.99
126092.11
8294.4218440.58
26735.00
2585.723327.38
7241.516232.30
2456.369445.329064.714188.83

1
1
1
1
1
1
1
1
1
1
1
1
1
1
61
1
1
2
1
1
1
1
1
1
1
1

100.0
100.0
100.0
100.0
90.9
95.0
100.0
100.0
95.8
99.0
99.0
97.8
100.0
96.1
96.1
98.5
100.0
99.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

2,119

0.4

194

7379.43

7379.43

1

100.0

1,898
1,570
1,381
1,331
1,242
1,242
1,192
1,192
749
589
283
8,350
2,792
2,119
7,801
5,594
3,821
3,742

0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.1
0.1
1.7
0.6
0.4
1.6
1.1
0.8
0.8

93
178
62
72
55
130
105
111
58
39
22
452
211
84
174
266
97
177

1719.293412.712953.38
1150.76
1134.522539.75
2089.864956.66
2673.64770.56391.496568.517961.26
1754.06
5400.164349.672247.92
2793.99

1719.293412.712953.38
1150.76
1134.522539.75
2089.864956.66
2673.64770.56391.496568.517961.26
1754.06
5400.164349.672247.92
2793.99

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indic ate the order of acquisition dates and properties with thesame acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Ac quisition price of "Sheraton Grande Tokyo Bay Hotel" iscalculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying asse t. For "The Westin Grand Cayman Seven
Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreignexchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and nursing homes which are counted as one unit by each compartment(Note 5) For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

46

Portfolio Properties (3/4)
P roperty

P roperty Name

NumberAddress

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

D28
D29
D30
D31
D32
D33
D34
D35
D36
D37
D38
D39
D40
D41
D42

Hotel MyS tays S himizu
S uper Hotel S hinbashi/ Karasumoriguc hi
Flexstay Inn Higashi-Jujo
Hotel MyS tays Utsunomiya
Flexstay Inn Kawasaki-Kaizuka
Comfort Hotel Toyama
Flexstay Inn Kawasaki-Ogawac ho
Flexstay Inn Ekoda
S uper Hotel Tokyo-JR Tac hikawa Kitaguc hi
S uper Hotel JR Ueno-iriyaguc hi
Hotel MyS tays S hinsaibashi
Comfort Hotel Kurosaki
Comfort Hotel Maebashi
Comfort Hotel Tsubamesanjo
Comfort Hotel Kitami

S himizu, S hizuoka
Minato-ku, Tokyo
Kita-ku, Tokyo

Maebashi, Gunma
S anjyo, Niigata
Kitami, Hokkaido

Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Aug 28, 2015
Aug 28, 2015
Aug 28, 2015
Jan 22, 2016
Jan 22, 2016
Jan 22, 2016
Jan 22, 2016
Jan 22, 2016

Jan 2007
Feb 2008
Jun 1986
Jan 1990
Apr 1990
Mar 2007
Apr 1989
Jan 1989
Nov 2007
Mar 2006
S ep 1984
Feb 2009
Mar 2009
Jun 2007
Mar 2008

D43

Hotel MyS tays Gotanda S tation

S hinagawa-ku, Tokyo

Mar 31, 2016

Mar 1974, Aug 1984

D44

Hotel Epinard Nasu

Nasu-gun, Toc higi

Mar 31, 2016

Feb 1992, Jun 1995

D45
D46
D47

Hotel MyS tays Fukuoka Tenjin
Hotel MyS tays Hamamatsuc ho
Hotel MyS tays Premier Kanazawa

Fukuoka, Fukuoka
Minato-ku, Tokyo
Kanazawa, Ishikawa

Mar 31, 2016
Mar 31, 2016
Jun 15, 2016

Aug 2008
Oc t 2008
Oc t 2014

D48

Takamatsu Tokyu REI Hotel

Takamatsu, Kagawa

Jun 15, 2016

Apr 1982

Utsunomiya, Tochigi
Kawasaki, Kanagawa
Toyama, Toyama
Kawasaki, Kanagawa

Nerima-ku, Tokyo
Tac hikawa, Tokyo
Taito-ku, Tokyo
Osaka, Osaka
Kitakyusyu, Fukuoka

Feb-Mar 2019
Oc t-Dec 2018
Mar 2013
Nov 2013-Jan 2014
Jan-Mar 2014
Feb-Mar 2014
Jan-Mar 2013
Mar 2018
Jan-Mar 2015
Mar-Nov 2015,
Jun-Oc t 2017
Apr-Jun 2014, Jan-Apr 2015,
Jan-Jul 2017, Jan-Feb 2020
Jan-May 2020
Jan-Mar 2020-

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

Rentable
Unit(Note 4)

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)

2,198
1,624
1,277
1,237
980
979
906
5,069
1,170
1,130
3,160
1,148
1,128
1,010
851

0.4
0.3
0.3
0.2
0.2
0.2
0.2
1.0
0.2
0.2
0.6
0.2
0.2
0.2
0.2

152
74
89
125
64
150
62
210
96
69
57
151
154
133
127

3559.811403.89
1714.53
11733.23
1190.57
3305.64725.603932.93
1832.97
1279.16
1942.01
3207.60
3660.963099.903009.503559.811403.89
1714.53
11733.23
1190.57
3305.64725.603932.93
1832.97
1279.16
1942.01
3207.60
3660.963099.903009.50

1
1
1
1
1
1
1
1
1
1
1
1
2
2
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

26,5235.3

386

10137.88

10137.88

1

100.0

20,9814.2

31037702.33

37702.33

1

100.0

8,059
7,959
13,761

1.6
1.6
2.8

217
105
261

5083.06
1951.9013250.03

5083.06
1951.9013250.03

1
1
1

100.0
100.0
100.0

2,139

0.4

193

7148.177148.17

3

100.0

8,000
13,068
9,781
8,870

1.6
2.6
2.0
1.8

134
397
256
323

6151.9313026.99
11849.61
19422.08

6151.9313026.99
11849.61
19422.08

1
1
1
1

100.0
100.0
100.0
100.0

7,880

1.6

243

7267.887267.88

1

100.0

5,326
2,772
2,723
1,604
4,068
3,257
20,691
16,731
5,286
5,039
15,543
9,731
9,405

1.1
0.6
0.5
0.3
0.8
0.7
4.2
3.4
1.1
1.0
3.1
2.0
1.9

166
198
158
145
110
122
329
419
150
108
307
245
159

4501.187563.60
14826.30
3254.69
1839.773844.648620.69
21670.64
4396.023429.43
15313.17
17247.545498.49

4501.187563.60
14826.30
3254.69
1839.773844.648620.69
21670.64
4396.023429.43
15313.17
17247.545498.49

1
1
1
1
1
1
1
1
1
1
1
1
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

Jan 2016, Dec 2016,
Dec 2017-Jan 2018,
Dec 2018
D49
D50
D51
D52

Hotel MyS tays Premier Hamamatsuc ho
Hotel MyS tays S hin Osaka Conferenc e Center
Hotel MyS tays Premier Omori
Beppu Kamenoi Hotel

Minato-ku, Tokyo
Osaka, Osaka
S hinagawa-ku, Tokyo
Beppu, Oita

May 29, 2017
Oc t 13, 2017
Oc t 13, 2017
Oc t 13, 2017

Jun 1994
Jun 1974
Feb 1995
May 1997

D53

Hotel MyS tays S apporo S tation

S apporo, Hokkaido

Oc t 13, 2017

Oc t 2007

D54
D55
D56
D57
D58
D59
D60
D61
D62
D63
D64
D65
D66

Hotel MyS tays Yokohama Kannai
Art Hotel Joetsu
Art Hotel Hirosaki City
Hotel MyS tays Oita
Hotel MyS tays Gotanda
Hotel MyS tays Tac hikawa
Hotel MyS tays Premier Akasaka
Hotel MyS tays Premier S apporo Park
Hotel MyS tays Ueno East
Hotel MyS tays Midosuji Honmac hi
Hotel MyS tays S apporo Aspen
Art Hotel Ishigakijima
Hotel MyS tays Fuji Onsen Resort

Yokohama, Kanagawa
Joetsu, Niigata
Hirosaki, Aomori
Oita, Oita
S hinagawa-ku, Tokyo
Tac hikawa-shi, Tokyo
Minato-ku, Tokyo
S apporo-shi, Hokkaido
Taito-ku, Tokyo
Osaka-shi, Osaka
S apporo, Hokkaido
Ishigaki, Okinawa
Fujiyoshida, Yamanashi

Feb 7, 2018
Feb 7, 2018
Feb 7, 2018
Feb 7, 2018
Jun 27,2018
Jun 27,2018
Aug 2,2018
Aug 2,2018
Aug 2,2018
Aug 2,2018
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019

Aug 2016
Nov 1993
Aug 1989
Jul 2007
Jun 1988
May 1991
Jun 2016
Mar 1998
S ep 1991
Oc t 2017
Dec 1995
Jan 1984
Nov 2016

Aug-Nov 2016
Nov 2015-Mar 2016
Aug -Nov 2016
May-Jul 2015
Oc t-Dec 2019,
Mar-May 2020
Mar 2008
Aug 2016
Apr-Jun 2016
Nov 2017-Apr 2018
Dec 2015-May 2016
Mar-Jun 2017
Oc t 2016-May 2017-

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indic ate the order of acquisition dates and properties with thesame acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Ac quisition price of "Sheraton Grande Tokyo Bay Hotel" iscalculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying asse t. For "The Westin Grand Cayman Seven
Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreignexchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and nursing homes which are counted as one unit by each compartment(Note 5) For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

47

Portfolio Properties (4/4)
P roperty

P roperty Name

NumberAddress

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

Apr 1992, Mar 1998,

D67

Hotel S onia Otaru

Otaru, Hokkaido

Jul 19, 2019

D68

Hotel MyS tays Kanazawa Castle

Kanazawa, Ishikawa

Jul 19, 2019

D69
D70
D71
D72
D73
D74
D75
D76
D77
D78

Art Hotel Niigata S tation
Hotel MyS tays Nagoya Nishiki
Hotel Nord Otaru
Hotel MyS tays Kagoshima Tenmonkan
Art Hotel Asahikawa
Hotel MyS tays Matsuyama
Hotel MyS tays S apporo S usukino
Hotel MyS tays S apporo Nakajima Park
Hotel MyS tays S apporo Nakajima Park Annex
Flexstay Inn S akuragicho

Niigata, Niigata
Nagoya, Aichi
Otaru, Hokkaido
Kagoshima, Kagoshima
Asahikawa, Hokkaido
Matsuyama, Ehime
S apporo, Hokkaido
S apporo, Hokkaido
S apporo, Hokkaido
Yokohama, Kanagawa

Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019

Apr 1985
Mar 1974
Mar 1996
S ep 1990
Oct 1987
Jul 2000
May 1981
Feb 1991
S ep 1991
Nov 1991

D79

MyCUBE by MYS TAYS Asakusa Kuramae

Taito-ku, Tokyo

Jul 19, 2019

S ep 1991

D80
D81
D82
D83
D200
D201
-

Hotel MyS tays Kagoshima Tenmonkan Annex
Hotel MyS tays Nayoro
Hotel MyS tays Premier Narita
Art Hotel Morioka
Westin Grand Cayman S even Mile Beach Resort & S pa
S unshine S uites Resort
S heraton Grande Tokyo Bay Hotel (preferred equity interest)
S ubtotal of Hotels
Total

Kagoshima, Kagoshima
Nayoro, Hokkaido
Narita, Chiba
Morioka, Iwate
Grand Cayman
Grand Cayman
Urayasu-shi, Chiba

Jul 19, 2019
Jul 19, 2019
Jan 6, 2020
Jan 6, 2020
May 9, 2019
May 9, 2019
Oct 13, 2017

Feb 1985
Nov 2014
May 1985
Mar 1981
1994
1999
Mar 1988

Nov 2018
Jun 1982, Feb 1991,
Jan 1997

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

Rentable
Unit(Note 4)

Oct 2016-May 2017

5,930

1.2

149

Nov 2015-Mar 2016

5,682

1.1

209

May-Aug 2007
May 2017-Jul 2018
Nov 2016-Apr 2017
Jan-Apr 2018
Dec 2017-Jan 2018
May-Jul 2018
Apr-Jul 2018
Jan-May 2016
Mar-Jun 2017
Jul-S ep 2016

5,524
5,197
4,296
3,445
3,197
3,098
3,059
2,118
1,584
1,425

1.1
1.0
0.9
0.7
0.6
0.6
0.6
0.4
0.3
0.3

304
172
98
197
266
163
105
86
80
70

1,287

0.3

162

1,168
957
10,593
5,643
30,061
5,842
17,845434,373
497,979

0.2
0.2
2.1
1.1
6.0
1.2
3.6
87.2
100.0

74
70
713
217
346
131
13,816
17,612

Nov 2015-May 2016
(Note 6)
Feb-Apr 2018
Aug 2017-Jan 2018
Dec 2018-Apr 2019
May 2016-Oct 20172016 Oct
S ep 2014-Jul 2015

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)6509.416509.411

100.0

5931.845931.841

100.010403.01
6077.996047.437659.55
25131.84
8274.372853.265473.41
1775.211308.61

10403.01
6077.996047.437659.55
25131.84
8274.372853.265473.41
1775.211308.61

1
1
1
2
1
1
1
1
1
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

2156.702156.701

100.0

2047.70
1985.2736519.70
16727.0821528.23
6723.112047.70
1985.2736519.70
16727.0821528.23
6723.11

1
1
1
1
1.00
1.00

100.0
100.0
100.0
100.0
100.0
100.0

519,273.01
677,285.53

519,273.01
672,100.12

88
151

100.0
99.2

-

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indic ate the order of acquisition dates and properties with thesame acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Ac quisition price of "Sheraton Grande Tokyo Bay Hotel" iscalculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying asse t. For "The Westin Grand Cayman Seven
Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = JPY110.45 fixed by the foreignexchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and nursing homes which are counted as one unit by each compartment(Note 5) For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

48

Borrowings and Investment Corporation Bonds (1/8) *As of August 25, 2020
Borrowings
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

(JPY million)
Term Loan (B)Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

4,250

Fixed interest rate
(swap)

0.60000% 1

January 22, 2016

January 22, 2021

New Syndicate Loan (F)Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Shizuoka Bank, Ltd.
Shinsei Bank, Limited
Resona Bank, Limited
The Kagawa Bank, Ltd.
The Hiroshima Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.

10,433

Floating interest rate

JPY 1 month TIBOR+0.60000%March 31, 2016

March 30, 2021

Term Loan (C )Citibank, N.A., Tokyo Branch

1,000

Floating interest rate

JPY 1 month TIBOR+0.60000%

June 15, 2016

June 15, 2021

Term Loan (D)AEON Bank, Ltd.

3,000

Floating interest rate

JPY 1 month TIBOR+0.60000%

June 30, 2016

June 30, 2021

Term Loan (E)The Tokyo Star Bank, Limited

1,700

Floating interest rate

JPY 1 month TIBOR+0.60000%

July 20, 2016

July 20, 2021

3,250

Floating interest rate

JPY 1 month TIBOR+0.50000%March 14, 2017

March 14, 2021

New Syndicate Loan (G)Mizuho Bank, Ltd.
Resona Bank, Limited
The Bank of Fukuoka, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Towa Bank, Ltd.
The Shizuoka Bank, Ltd.
The Gunma Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited
The Bank of Fukuoka, Ltd.
The Nomura Trust and Banking Co., Ltd.
AEON Bank, Ltd.
The Towa Bank, Ltd.
The Shizuoka Bank, Ltd.
The Dai-ichi Life Insurance Company, Limited
The Gunma Bank, Ltd.

4,750

Floating interest rate

JPY 1 month TIBOR+0.60000%March 14, 2017

March 14, 2022

(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

49Borrowings and Investment Corporation Bonds (2/8) *As of August 25, 2020
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

(JPY million)
Term Loan (F)Sumitomo Mitsui Banking Corporation

3,000

Floating interest rate

JPY 1 month TIBOR+0.45000%March 14, 2017

September 14, 2020

Term Loan (G)Mizuho Bank, Ltd.
The Dai-ichi Life Insurance Company, Limited

7,321

Floating interest rate

JPY 1 month TIBOR+0.55000%

May 29, 2017

November 29, 2021

1,868

Floating interest rate

JPY 1 month TIBOR+0.30000%

October 13, 2017

October 13, 2020

1,867

Floating interest rate

JPY 1 month TIBOR+0.40000%

October 13, 2017

October 13, 2021

5,365

Floating interest rate

JPY 1 month TIBOR+0.60000%

October 13, 2017

October 13, 2022

3,565

Floating interest rate

October 13, 2017

October 13, 2023

3,560

Floating interest rate

October 13, 2017

October 11, 2024

1,500

Fixed interest rate
(swap)

June 27, 2018

June 27, 2023

Shinsei Bank, Limited
Citibank, N.A.,Tokyo Branch
Resona Bank, Limited
The Bank of Fukuoka, Ltd.
AEON Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Hiroshima Bank, Ltd.

New Syndicate Loan (H)Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Limited
Citibank, N.A.,Tokyo Branch
Resona Bank, Limited
Development Bank of Japan, Inc.
The Bank of Fukuoka, Ltd.
AEON Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Hiroshima Bank, Ltd.
The Dai-ichi Life Insurance Company, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation

Term Loan (H)

MUFG Bank, Ltd.
Shinsei Bank, Limited

JPY 1 month TIBOR+0.70000%
JPY 1 month TIBOR+0.80000%
0.74950% 1(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

50Borrowings and Investment Corporation Bonds (3/8) *As of August 25, 2020
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

9,660

Floating interest rate

JPY 1 month TIBOR+0.30000%

July 17, 2018

July 17, 2021

9,660

Floating interest rate

JPY 1 month TIBOR+0.40000%

July 17, 2018

July 17, 2022

9,659

Floating interest rate

JPY 1 month TIBOR+0.50000%

July 17, 2018

July 14, 2023

2,359

Floating interest rate

JPY 1 month TIBOR+0.30000%

August 2, 2018

August 2, 2021

10,761

Floating interest rate

JPY 1 month TIBOR+0.30000%

September 26, 2018

September 26, 2021

13,120Floating interest rate

JPY 1 month TIBOR+0.40000%

September 26, 2018

September 26, 2022

13,119Floating interest rate

JPY 1 month TIBOR+0.50000%

September 26, 2018

September 26, 2023

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

4,250

Fixed interest rate
(swap)

0.37250% 1

January 22, 2019

January 22, 2022

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Resona Bank, Limited
Development Bank of Japan, Inc.
The Bank of Fukuoka, Ltd.
The Shizuoka Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Senshu Ikeda Bank, Ltd

7,934

Fixed interest rate
(swap)

0.36100% 1

March 29, 2019

March 29, 2022

Aozora Bank, Ltd
The Nishi-Nippon City Bank, Ltd.
The Tochigi Bank, Ltd.

2,500

Fixed interest rate
(swap)

0.59400% 1

March 29, 2019

March 29, 2024

Kiraboshi Bank, Ltd.

1,000

Floating interest rate

JPY 1 month TIBOR+0.80000%March 29, 2019

March 29, 2029

(JPY million)

New Syndicate Loan (I)Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Citibank, N.A.,Tokyo Branch
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Shinsei Bank, Limited
Citibank, N.A.,Tokyo Branch
The Nomura Trust and Banking Co., Ltd.
AEON Bank, Ltd.

New Syndicate Loan (J)Term Loan (I)New Syndicate Loan (K)Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Citibank, N.A.,Tokyo Branch
Development Bank of Japan, Inc.
Resona Bank, Limited
The Nomura Trust and Banking Co., Ltd.
AEON Bank, Ltd.

(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

51

Borrowings and Investment Corporation Bonds (4/8) *As of August 25, 2020
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

(JPY million)
Term Loan (J)Citibank, N.A.,Tokyo Branch

1,000

Fixed interest rate
(swap)

0.34000% 1

June 17, 2019

June 17, 2022

Term Loan (K)Development Bank of Japan, Inc.

1,000

Fixed interest rate
(swap)

0.33433% 1

June 28, 2019

June 17, 2022

5,796

Fixed interest rate
(swap)

0.40000% 1

July 16, 2019

January 16, 2023

5,796

Fixed interest rate
(swap)

0.49859% 1

July 16, 2019

January 16, 2024

5,796

Fixed interest rate
(swap)

0.56310% 1

July 16, 2019

July 16, 2024

5,796

Floating interest rate

JPY 1 month TIBOR+0.55000%

July 16, 2019

January 16, 2025

5,795

Floating interest rate

JPY 1 month TIBOR+0.70000%

July 16, 2019

July 16, 2025

4,943

Fixed interest rate
(swap)

0.41326% 1

July 19, 2019

January 16, 2023

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Citibank, N.A., Tokyo Branch
Resona Bank, Limited.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
New Syndicate Loan (M)Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Citibank, N.A., Tokyo Branch
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited

New Syndicate Loan (L)Mizuho Bank, Ltd.,
Sumitomo Mitsui Banking Corporation,
MUFG Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited,
Citibank, N.A., Tokyo Branch,
Development Bank of Japan Inc.,
AEON Bank, Ltd.,The Nomura Trust and Banking Co., Ltd.

(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

52

Borrowings and Investment Corporation Bonds (5/8) *As of August 25, 2020
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

4,943

Fixed interest rate
(swap)

0.52473% 1

July 19, 2019

January 16, 2024

4,943

Fixed interest rate
(swap)

0.57984% 1

July 19, 2019

July 16, 2024

4,943

Floating interest rate

JPY 1 month TIBOR+0.55000%

July 19, 2019

January 16, 2025

4,942

Floating interest rate

JPY 1 month TIBOR+0.70000%

July 19, 2019

July 16, 2025

700

Floating interest rate

JPY 1 month TIBOR+0.70000%

July 22, 2019

July 16, 2025

3,682

Fixed interest rate
(swap)

0.46219% 1

August 28, 2019

January 16, 2024

1,700

Fixed interest rate
(swap)

0.48590% 1

October 15, 2019

April 15, 2024

1,000

Floating interest rate

JPY 1 month TIBOR+0.55000%

October 15, 2019

April 15, 2025

1,000

Floating interest rate

JPY 1 month TIBOR+0.70000%

October 15, 2019

October 15, 2025

(JPY million)

New Syndicate Loan (L)Mizuho Bank, Ltd.,
Sumitomo Mitsui Banking Corporation,
MUFG Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited,
Citibank, N.A., Tokyo Branch,
Development Bank of Japan Inc.,
AEON Bank, Ltd.,
Aozora Bank, Ltd.,The Nomura Trust and Banking Co., Ltd.
Mizuho Bank, Ltd.,
Sumitomo Mitsui Banking Corporation,
MUFG Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited,
Development Bank of Japan Inc.,
AEON Bank, Ltd.,
Aozora Bank, Ltd.,The Nomura Trust and Banking Co., Ltd.

Term Loan (L)Tokyo Star Bank, Limited

New Syndicate Loan (N)Mizuho Bank, Ltd.
The Daisan Bank, Ltd.

The Daisan Bank, Ltd.
New Syndicate Loan (O)The Nishi-Nippon City Bank, Ltd.

(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

53Borrowings and Investment Corporation Bonds (6/8) *As of August 25, 2020
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

880

Floating interest rate

JPY 1 month TIBOR+0.20000%

January 6, 2020

January 6, 2021

1,550

Fixed interest rate
(swap)

0.41687% 1

January 6, 2020

January 6, 2023

3,050

Fixed interest rate
(swap)

0.64291% 1

January 6, 2020

January 6, 2025

Momiji Bank,Ltd.

1,000

Fixed interest rate
(swap)

0.64291% 1

January 6, 2020

January 6, 2025

The Kiyo Bank

500

Fixed interest rate
(swap)

0.64291% 1

January 6, 2020

January 6, 2025

Mizuho Bank, Ltd.
Resona Bank, Limited
Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Shizuoka Bank, Ltd.
The Yamaguchi Bank, Ltd.

3,250

Fixed interest rate
(swap)

0.48700% 1

March 16, 2020

March 16, 2025

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Fukuoka, Ltd.

2,273

Floating interest rate

JPY 1 month TIBOR+0.30000%March 30, 2020

March 16, 2023

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Resona Bank, Limited
The Nomura Trust and Banking Co., Ltd.
Aozora Bank, Ltd.
The Shizuoka Bank, Ltd.
The Kagawa Bank, Ltd.
The Yamaguchi Bank, Ltd.
The Chukyo Bank, Ltd.

6,960

Floating interest rate

JPY 1 month TIBOR+0.50000%March 30, 2020

March 16, 2025

(JPY million)

Sumitomo Mitsui Trust Bank, Limited
New Syndicate Loan (P)New Syndicate Loan (Q)(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

54

Borrowings and Investment Corporation Bonds (7/8) *As of August 25, 2020
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

(JPY million)
Term Loan (M)Citibank, N.A., Tokyo Branch

1,000

Floating interest rate

JPY 1 month TIBOR+0.25000%

June 15, 2020

June 17, 2022

New Syndicate Loan (R)Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Shinsei Bank, Limited
Citibank, N.A., Tokyo Branch
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited.

28,979Floating interest rate

JPY 1 month TIBOR+0.25000%

July 16, 2020

July 16, 2021

Term Loan (N)The Tokyo Star Bank, Limited

600

Floating interest rate

JPY 1 month TIBOR+0.25000%

July 20, 2020

July 20, 2022

Term Loan (O)Development Bank of Japan Inc.

1,000

Floating interest rate

JPY 1 month TIBOR+0.25000%

July 20, 2020

July 20, 2021

Subtotal of Short Term Debt
Subtotal of Long Term Debt
Total Debt

30,859224,409255,268(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated.
(Note 2) Borrowing amount is rounded down to indicated unit.

55

Borrowings and Investment Corporation Bonds (8/8) *As of August 25, 2020
Investment Corporation Bonds
Name

Issue Date

Issue AmountInterest

Term

Redemption Date

5 ye ars

May 25, 2023

10 ye ars

May 25, 2028

5 ye ars

Octobe r 12, 2023

5 ye ars

Octobe r 28, 2024

10 ye ars

Octobe r 26, 2029

10 ye ars

March 13, 2030

Rating(JPY million)
1st se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
2nd se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
3rd se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
4th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
5th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
6th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
Total

May 25, 2018

1,000

May 25, 2018

1,000

Octobe r 12, 2018

2,000

Octobe r 28, 2019

1,000

Octobe r 28, 2019

2,000

March 13, 2020

1,200

0.400％
p.a.
0.800％
p.a.
0.550％
p.a.
0.480％
p.a.
0.900％
p.a.
0.850％
p.a.

A＋
（JCR)
A＋
（JCR)
A＋
（JCR)
A＋
（JCR)
A＋
（JCR)
A＋
（JCR)

8,200

56

Overview of Unitholders
As of December 31, 2019

As of June 30, 2020

Major Unitholders (TOP 10)

Number ofunits held(%)

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

1,172,717

19.23

2 Japan Trustee Services Bank, Ltd. (trust account)

669,210

10.97

3 JP MORGAN BANK LUXEMBOURG S.A. 384500

299,486

4.91

281,403

4.61

191,295

3.13

6 GCAS BANA LONDON US CLIENT

123,245

2.02

7 Mizuho Trust & Banking Co., Ltd.

118,042

1.93

8 STATE STREET BANK AND TRUST COMPANY 505001

103,325

1.69

9 STATE STREET BANK WEST CLIENT - TREATY 505234

80,3641.31

10 J.P. Morgan Securities

77,534
3,116,621

Name

The Nomura Trust and Banking Co., Ltd. (investment trust4
account)
Trust & Custody Services Bank, Ltd. (securities investment
5
trust account)

Total

Number ofunits held(%)

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

976,81116.02

2 Japan Trustee Services Bank, Ltd. (trust account)
STICHTING PGGM DEPOSITARY PGGM LISTED REAL
3
ESTATE PF FUND
The Nomura Trust and Banking Co., Ltd. (investment trust4
account)
Trust & Custody Services Bank, Ltd. (securities investment
5
trust account)

599,611

9.83

335,7155.50

309,5905.07

224,619

3.68

6 GCAS BANA LONDON US CLIENT

123,245

2.02

106,004

1.73

92,3791.51

1.27

7 THE BANK OF NEW YORK MELLON 140044
NORTHERN TRUST CO. (AVFC) RE MONDRIAN
8INTERNATIONAL SMALL CAP EQUITY FUND , L.P.
9 STATE STREET BANK AND TRUST COMPANY 510312

89,431

1.46

51.11

10 JP MORGAN CHASE BANK 380055

Name

Total
*Percentages are rounded down to the second decimal place

Issued investment units: 6,096,840

84,1481.38

2,941,553

48.24

Issued investment units: 6,096,840

Unitholders Composition＜Number of Unitholders＞
1.4%
(497)
0.4%
(129)

＜Number of Units held by Unitholders＞

1.3%
(434)

12.2%
(741,478)＜Number of Unitholders＞
1.3%
(552)
0.2%
(95)

＜Number of Units held by Unitholders＞

1.0%
(442)

18.2%
(1,110,029)

35.8%(2,184,143)37.9%(2,310,571)
50.0%(3,049,243)

96.9%(33,566)

2.0%(121,976)(Total : 34,626)(Total : 6,096,840 units)

Individuals*Percentages are rounded to one decimal place

Financial Institutions (incl. Securities Companies)

41.8%(2,546,795)

97.4%(41,350)

2.1%(129,445)(Total : 42,439)

Other Domestic Corporations(Total : 6,096,840 units)

Foreign Companies, etc.

57

Unit Price Information
Volume (right)(JPY)

INV unit price (left)

TSE REIT Index(Unit)

100,000

450,000

90,000(as of July 31, 2020)

80,000400,000

INV unit price: ¥24,200

Market Cap: ¥147.5 billion

350,000

70,000300,000
60,000250,000
50,000200,000
40,000150,000
30,000100,000

20,00050,00010,0000

0Jan-13Jan-14Jan-15Jan-16

Jan-17Jan-18Jan-19(Note 1) It shows the change in the price from January 4, 2013 until July 31, 2020
(Note 2) TSE REIT Index has been indexed, assuming the closing price of TSE REIT Index as of January 4, 2013 was the same as the closing price of INV unit on the same day

Jan-2058

Disclaimer
This material is for informational purposes only and not for solicitation to invest in, or recommendation to buy, certain products of
INV. You should consult with securities firms if you intend to purchase investment units of INV.
This material does not constitute or form a part of any disclosure document or an asset management report required by the Financial
Instruments and Exchange Act of Japan or regulations thereunder, the Investment Trust and Investment Corporation Act of Japan orregulations 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 and premises inconsideration of the available information as of the date of this material; 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)

Tel. +81-3-5411-2731

Memo