Investment
Invincible Corporation

Financial Summary
for the December 2021 Fiscal Period(from July 1, 2021 to December 31, 2021)
February 24, 2022

Name
Representative
Stock Listing
Securities CodeURL
Contact

:
:
:
:
:
:

Invincible Investment Corporation (“INV”)
Naoki Fukuda, Executive Director
Tokyo Stock Exchange8963
https://www.invincible-inv.co.jp/en/
Consonant Investment Management Co., Ltd.
(Asset Manager of INV)
Jun Komo, General Manager of Planning Department
Tel. +81-3-5411-2731

Start date fordividend distribution: March 22, 2022

This English language notice is a translation of the Japanese-language notice released on February 24, 2022 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility. This translation of the original Japaneselanguage notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy or completenessof this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between thistranslation and the Japanese original, the latter shall prevail in all respects.

1.

(Figures are rounded down to the nearest JPY million)
Financial Results for the Fiscal Period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)(1)

Operating Results(Percentages indicate percentage change from the preceding period)
Operating Revenues

Fiscal period ended
December 31, 2021
Fiscal period ended
June 30, 2021

Operating Income

Net Income

JPY million%

JPY million%

JPY million%

JPY million

%

8,406

120.9

2,292

-

1,014

-

1,014

-

3,806

(54.5)(2,341)-(3,599)-(3,599)-Fiscal period ended
December 31, 2021
Fiscal period ended
June 30, 2021

Ordinary Income /Total Assets

Net Income /Unitholders’ Equity

Net Income per Unit

(2)

Ordinary Income

Ordinary Income /Operating Revenues

JPY

%

%

%

166

0.4

0.2

12.1

(590)

(1.5)

(0.7)

(94.6)

Distributions
Distribution(Excluding excess profit distribution)

Per Unit
Fiscal period ended
December 31, 2021
Fiscal period ended
June 30, 2021

Total

Excess Profit Distribution
Per Unit

Dividend Payout
Ratio

Distribution/ Net Assets

Total

JPY

JPY million

JPY

JPY million

%

%

166

1,012

-

-

99.8

0.4

15

91

-

-

-

0.0

(Note 1) The full amount of distribution (excluding excess profit distribution) for the fiscal period ended June 30, 2021 was made byreversing retained earnings.
(Note 2) Dividend Payout Ratio is calculated in accordance with the following formula and is rounded to the nearest one decimal place:
Dividend Payout Ratio = Distribution Amount (Excluding excess profit distribution) ÷ Net Income × 100(Note 3) Distribution / Net Assets is calculated based on the figures excluding excess profit distribution.

(3)

Financial Position
Total Assets

Fiscal period ended
December 31, 2021
Fiscal period ended
June 30, 2021
(Note)

JPY million

Net Assets / Total%
AssetsNet Assets per Unit

JPY million

Net Assets

494,819

246,130

49.7

40,370497,899

245,113

49.2

40,203JPY

Net Assets per Unit is calculated based on the number of investment units issued and outstanding at the end of each fiscal
period and is rounded to the nearest yen.

2

(4)

Cash Flows
Cash Flows fromOperating
Activities

Cash Flows from
Investment
Activities

Closing Balance ofCash and
Cash Equivalents

Cash Flows from
Financing
Activities

JPY million

JPY million

JPY million

JPY million

Fiscal period ended
December 31, 2021

12,320(1,561)(4,873)

16,726

Fiscal period ended
June 30, 2021

503

(1,192)(14,647)

10,8402.

Forecasts for the Fiscal Period ending June 30, 2022 (from January 1, 2022 to June 30, 2022)

Operating
Revenues

Fiscal period
ending June 30,
2022(Note)

Operating
Income(Percentages indicate percentage change from the preceding period)
Distribution per Excess Profit
Ordinary
Unit (excluding
Distribution per
Net Income
excess profit
IncomeUnit
distribution)

JPY
million%JPY
million%JPY
million%JPY
million

%

JPY

JPY

TBD

(-)

TBD

(-)

TBD

(-)

TBD

(-)

TBD

TBD

The worldwide spread of COVID-19 has had a significant impact on hotel revenues. At this point in time, it remains difficult to predict
the spread of COVID-19 and its impact on the hotel industry and operators. Therefore, the forecast of financial results and DPU for theJune 2022 fiscal period (from January 1 to June 30, 2022) remains undetermined.

※Others(1) Changes in Accounting Policies, Accounting Estimates or Restatements(a) Changes in Accounting Policies due to Revisions to
Accounting Standards and Other Regulations

Yes(b) Changes in Accounting Policies due to Other Reasons

None(c) Changes in Accounting Estimates

None(d) Restatements

None(Note) Please refer to “Notes on Changes in Accounting Policies” regarding the detail.

(2) Number of Investment Units Issued and Outstanding(a) Number of Units Issued and Outstanding

December 31, 2021 6,096,840

June 30, 2021

6,096,840

December 31, 2021

June 30, 20200

as of the End of the Fiscal Period (Including Treasury Units)(b) Number of Treasury Units as of the End of the Fiscal Period0(Note) Please refer to “Notes Related to Per Unit Information” regarding the number of investment units which is the basis for the
calculation of net income per unit.

・ Financial Summary report is not subject to audit procedure by certified public accountants or audit corporations.
・ Special Consideration
The forward-looking statements contained in this financial summary report are based on the information
currently available to us and certain assumptions which we believe are reasonable. Actual operating performance
may differ significantly due to factors we cannot predict as of the date of this document, including gains or losses
from the disposition of properties, repayment of borrowings, decreases in rents and changes in operating
conditions. Unless otherwise specified herein, amounts less than JPY 1 are rounded down, and ratios are rounded
to the nearest one decimal place.

31. Operating Conditions(1) Operating Conditionsa

Overview of the Fiscal Period Ended December 31, 2021(a)

Main Trends of INV

INV was established in January 2002 in accordance with the Investment Trust and Investment Corporation Act(Act No. 198 of 1951, as amended; the “Investment Trust Act”). In May 2004, INV was listed on the Osaka
Securities Exchange (application for delisting was made in August 2007), and in August 2006 was listed on theReal Estate Investment and Trust Securities Section of the Tokyo Stock Exchange (Ticker Code: 8963).
After the absorption-type merger with LCP Investment Corporation (“LCP”) was implemented on February 1,
2010, INV issued new investment units through a third-party allotment on July 29, 2011 and refinanced its debt.
Calliope Godo Kaisha (“Calliope”), an affiliate of the Fortress Investment Group LLC (“FIG” and together with
Calliope and other affiliates of FIG, collectively the “Fortress Group”) was the main allottee, and the sponsor
changed to the Fortress Group.
FIG became a subsidiary of SoftBank Group Corp. (“SoftBank Group”), after SoftBank Group acquired FIG
effective on December 27, 2017 (Note 1). Calliope, an affiliate of FIG, who owned 100% of the issued shares ofConsonant Investment Management Co., Ltd., the asset manager to which INV entrusts the management of its
assets (“CIM”), transferred 80.0% of issued shares of CIM to Fortress CIM Holdings L.P., a subsidiary of SoftBank
Group, and 20.0% to SoftBank Group on March 29, 2018, pursuant to the basic agreement which was entered into
as of September 7, 2017. Although FIG is no longer an indirect parent company of CIM, FIG continues to support
INV as the sponsor.
Ever since the commencement of sponsorship from the Fortress Group (Note 2), INV has been focusing its efforts
on improving the profitability of its portfolio and establishing a revenue base in order to secure stable
distributions, and has strengthened the lender formation through new borrowings and the refinancing of existingbank borrowings, thereby creating a financial base for external growth. With this platform as a base, in June
2014, CIM revised the Investment Guidelines for INV, positioned hotels as a core asset class alongside residential
properties with a view towards expanding investments in the hotel sector in which demand is forecasted to risegoing forward, and has expanded its portfolio.
Moreover, CIM revised the Investment Guidelines as of July 17, 2018. Such revision was intended to establish
an investment policy and asset management structure regarding investments in overseas assets, and also tochange the investment policy regarding domestic hotels to focus on (i) Limited service hotels, which feature
relatively higher profit margins and potential for revenue growth backed by increasing demand foraccommodations, and (ii) Full-service and Resort hotels, which have a variety of revenue sources, including
lodging, dining and sales of goods, that are expected to achieve stable growth in overall hotel revenues.
Based on such change in investment policy, in July 2018, INV decided on the acquisition of TK (Japaneseanonymous association (tokumei kumiai)) interest in two overseas hotels, “Westin Grand Cayman Seven Mile
Beach Resort & Spa” and “Sunshine Suites Resort” (collectively, the “Cayman Hotels”) as underlying assets
for the first time ever in J-REIT history. In September 2018, INV implemented the investment in the Cayman
Hotels via a global offering of new investment units and borrowing of funds. INV intends to improve boththe profitability and stability of the portfolio through such investments, including investment in the Cayman
Hotels, which is expected to even out the effects of seasonality in INV’s portfolio.
In the Fiscal Period ended December 31, 2021 (“Reporting Period”), INV sold one retail facility on July 2, 2021.
In addition, INV decided to sell 13 residential properties on December 8, 2021, seven of which were sold on
December 22, 2021. As a result, INV's portfolio at the end of the Reporting Period comprised of 134 properties(86 hotels (Note 3) (Note 4), 47 residential properties and one retail facility) with a total acquisition price of JPY
494,766 million (Note 5). Furthermore, INV’s hotel portfolio has the largest asset size (Note 6) of JPY 450,609
million (86 properties, 15,597 rooms) among all J-REIT hotel portfolios including hotel-and-inn-specific type
investment corporations.
(Note 1)US Eastern Standard Time.

(Note 2) As of July 2011, Calliope owned 97.35% of issued shares of CIM and the investment ratio reached 100%4

in October 2013. Calliope transferred 80.0% of issued shares to Fortress CIM Holdings L.P., asubsidiary of SoftBank Group and 20.0% to SoftBank Group on March 29, 2018. As of the date of thisdocument, SoftBank Group owns 100% of issued shares of CIM directly and indirectly.
(Note 3) The preferred equity interest held by INV is counted as one property. Such preferred equity interest
issued by a special purpose company (tokutei mokuteki kaisha) refers to 178,458 units of the preferred
equity interest issued by Kingdom Special Purpose Company (the “TMK”) (equivalent to 49.0% of
the total issued and outstanding preferred equity interest), which owns the trust beneficiary interestof the Sheraton Grande Tokyo Bay Hotel as an underlying asset. The property is classified as a hotel,
based on the use of Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred equity
interest, and INV’s investment amount of the preferred equity interest is used as the acquisition priceof the preferred equity interest, unless otherwise stated. The “underlying asset” refers to the realestate or the real estate related assets owned by a TK operator of TK interest or a TMK relating to thepreferred equity interest which INV owns, thus the real estate or the real estate related assets which
will be the revenue source of INV. Hereinafter the same shall apply.
(Note 4) From September 28, 2018 (Cayman Island local time; September 29, 2018 in Japan local time), INV
owned 100% of the TK interest in Seven Mile Resort Holdings Ltd. (the “Cayman SPC”), a Cayman
Islands special purpose company that holds leasehold interests in the Cayman Hotels and ancillary
assets as underlying assets. However, INV implemented the investment structure change (the“Structure Change” in some cases hereinafter) regarding the Cayman Hotels on May 9, 2019
(Cayman Island local time; May 10, 2019 in Japan local time) and has directly held the Leasehold
Interests, etc. of the Cayman Hotels thereafter. Both of the TK interest and the Cayman Hotels arecounted as two properties before and after the Structure Change. In addition, the “Leasehold
Interests, etc.” means leasehold interests (rights equivalent to long-term real estate leases on land andbuildings under the British Cayman laws) and furniture, fixtures, equipment, ornaments, kitchen
instrument, and other assets required for hotel operations. Hereinafter the same shall apply.
(Note 5) Due to the Structure Change, the book value of the leasehold interests of the Cayman Hotels recordedby the Cayman SPC as of May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan local time),
when INV succeeded the leasehold interests of the Cayman Hotels from the Cayman SPC via
distribution in kind in connection with the termination of TK agreement, is deemed as the acquisition
price of the Cayman Hotels. The book value is converted into JPY amount via exchange rate of USD
1=JPY 110.45 based on the foreign exchange forward contracts executed on July 26, 2018 andimplemented on September 26, 2018 in connection with the investment in the TK interest by INV.
Hereinafter the same shall apply.
(Note 6) “The largest asset size … among all J-REIT hotel portfolios” refers to the total acquisition price of 86
hotels owned by INV as compared with the total acquisition price of hotels (including inns and otheraccommodation facilities) owned by listed investment corporations other than INV as of December
31, 2021.
(b)

Operational Environment and Performance

Given the enormous impact of COVID-19 on the economy as a whole, especially in the hotel sector, on
September 10, 2021 and December 8, 2021, INV entered into Memorandum of Understandings (collectively the“MOU”) to amend each fixed-term building lease and property management agreement ("MLPM
Agreements") pertaining to the rent conditions for the periods from July 1, 2021 to September 30, 2021 andfrom October 1, 2021 to December 31, 2021 for domestic hotels owned by INV and operated by INV's main
tenant, MyStays Hotel Management Co., Ltd. (“MHM”) and its affiliates (collectively the “MHM Group” alongwith MHM). Pursuant to the MOU, we have changed the rent payment conditions of MLPM Agreements interms of the amount of fixed rent payment, the variable rent calculation method, payment method of rent andpayment date.
For the December 2021 fiscal period, the portfolio NOI (Note 1) increased by 13.5% or JPY 498 million comparedto the same period in the previous year (the December 2020 fiscal period) to JPY 4,201 million. The hotel
portfolio NOI increased by JPY 872 million. The residential and retail portfolio NOI decreased by JPY 373
million due to asset sales. Compared to the December 2019 fiscal period prior to the COVID-19 pandemic,
5the portfolio NOI decreased by 72.3% or JPY 10,962 million, of which the hotel portfolio NOI decreased by JPY
10,390 million and the residential and retail portfolio NOI decreased by JPY 571 million due to asset sales.
Commentary on hotel and residential performance in the Reporting Period is as described below.
The NOI for the Reporting Period of the 75 domestic hotels (Note 2) owned by INV increased by 40.0%
compared to the same period in the previous year (figures exclude nine domestic hotels with fixed-rent leaseagreements among the 84 domestic hotels owned by INV as of the end of the Reporting Period, including
Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred equity interest of TMK owned by
INV). The 75 domestic hotels recorded an occupancy rate (Note 3) of 52.4% (+4.1 points YoY), ADR (Note 4)of JPY 7,667 (-8.5% YoY), and RevPAR (Note 5) of JPY 4,020 (-0.7% YoY). Compared to the December 2019fiscal period prior to the COVID-19 pandemic, the NOI decreased by 76.7%, the occupancy rate decreased by
35.9pt, ADR decreased by 27.8%, and RevPAR decreased by 57.1%.
Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort recorded an averageoccupancy rate of 14.9% (+10.4 points YoY), ADR of USD 193 (+11.3% YoY), and RevPAR of USD 29 (+270.8%
YoY) for the Reporting Period. Compared to December 2019 fiscal period prior to the COVID-19 pandemic,
the occupancy rate decreased by 57.4pt, ADR decreased by 41.1%, and RevPAR decreased by 87.9%.
Regarding the hotel sector in Japan, domestic hotel demand has significantly declined compared to preCOVID-19 pandemic levels due to a sharp reduction in inbound visitors and self-restraint in business trips
and leisure travel under the State of Emergency and other measures. Under such circumstances, highoccupancy rates were recorded, centering on the hotels that were able to capture group accommodation andbusiness demand, as well as leisure demand derived from an increase in various events in the market andmunicipalities’ local travel subsidy programs, which helped several hotels achieve occupancy rates over 90%
in some months. Since most of the Tokyo Olympics Games were held without spectators, the knock-on effecton the accommodation demand was limited for many hotels owned by INV in the Tokyo metropolitan areaand Hokkaido.
As for the Cayman Hotels, commercial flights to/from the US and UK resumed on a limited basis and therequirement for fully vaccinated tourists to self-quarantine after border entry was lifted in November 2021.
However, hotel demand did not recover in earnest because of the continuation of the 14-day self-isolation
requirement for children who are not fully vaccinated, and the travel health notice from the US’ CDC, which
listed the Cayman Islands as level 4, the highest COVID-19 risk category. After that, epidemic prevention
measures for tourists have been gradually relaxed in the Cayman Islands, and the aforementioned quarantine
measures for unvaccinated children have been relaxed as of the date of this document. Furthermore, therapid lateral flow COVID-19 tests that were required multiple times after border entry were lifted, and major
US airlines resumed operations to the Cayman Islands. The hotel demand is expected to start recovering indue course.
Regarding the residential portfolio, the occupancy rate (Note 6) of 54 residential properties (Note 7) decreasedby 1.3 points from 95.4% at the end of the previous fiscal period to 94.1% at the end of the Reporting Period.
The average occupancy rate (Note 6) increased by 0.1 points YoY to 94.7%. The NOI (Note 8) for theReporting Period decreased by 2.4% YoY, mainly due to the sale of seven residential properties executed on
December 22, 2021. The NOI (Note 8) for the 47 residential properties excluding the seven properties sold in
December 2021 decreased by 0.9% year-over-year on a cumulative basis for the Reporting Period.
In the Reporting Period, INV realized a rent increase for 31.5% (based on the number of contracts) of the newresidential lease contracts, however the new rent decreased by 1.5% compared to the previous rent across all
new leases (Note 9). INV achieved a rent increase for 33.5% (based on the number of contracts) of contract
renewals with an average rent increase of 1.4% compared to the previous rent across all renewal leases, while
maintaining a high contract renewal rate (Note 10) of 79.6%, a decrease of 4.5 points YoY. Combined, newlease and renewal lease rents were signed at 0.3% higher than the previous leases. The average rent per tsubo
per month (Note 11) for the Reporting Period decreased by 1.0% YoY to JPY 9,004.
The total appraisal value of 133 properties was JPY 523,699 million (1 out of the 134 properties owned by INV
at the end of the Reporting Period is excluded from the appraisal calculation: Sheraton Grande Tokyo Bay
Hotel (preferred equity interest) for which the appraisal value of such interest is not available). The portfolio
has an unrealized gain of JPY 71,895 million (Note 12) and an unrealized gain ratio of 15.9% (Note 12). The
total appraisal value of 133 properties which were owned throughout the Reporting Period increased by 0.2%
6

from JPY 522,888 million at the end of the June 2021 fiscal period to JPY 523,699 million at the end of theReporting Period.
Key Performance Indicators of 75 Domestic Hotel Properties (Note 2)
December 2021 fiscal periodvs 2H 2020

vs 2H 2019

Occupancy Rate (Note 3)

52.4%+4.1pt-35.9pt

ADR (JPY) (Note 4)

7,667

-8.5%

-27.8%

RevPAR (JPY) (Note 5)

4,020

-0.7%

-57.1%GOP (JPY million) (Note 13)

3,315

-0.9%

-74.3%Key Performance Indicators of Cayman Hotels
December 2021 fiscal periodvs 2H 2020

vs 2H 2019

Occupancy Rate (Note 3)

14.9%+10.4pt-57.4pt

ADR (USD) (Note 4)

193+11.3%-41.1%

RevPAR (USD) (Note 5)29+270.8%-87.9%GOP (USD) (Note 13)-1,151,126- (Note 14)- (Note 14)

Key Performance Indicators of 54 Residential Properties (Note 7)
December 2021 fiscal period
Occupancy Rate (Note 6)
Average Rent per Tsubo per Month(JPY) (Note 11)
NOI (JPY million) (Note 8)

Year-on-year change

94.7%+0.1pt

9,004

-1.0%

1,338

-2.4%

(Note 1) “NOI” for the hotel properties is calculated in accordance with the following formula:
NOI＝ Rental Revenues ‐ Property Related Expenses + Depreciation Expenses + Dividend on thepreferred equity interest (TMK dividend) + (Management Contract Revenue of the Cayman Hotels‐Management Contract Expense)(Note 2) Of the 84 hotels held as of the end of the December 2021 Fiscal Period (including the Sheraton GrandeTokyo Bay Hotel, the underlying asset of the preferred equity interest of TMK owned by INV), thefollowing nine hotels with fixed-rent lease agreements are excluded: Super Hotel
Shinbashi/Karasumoriguchi, Comfort Hotel Toyama, Super Hotel Tokyo-JR Tachikawa Kitaguchi,
Super Hotel JR Ueno-iriyaguchi, Comfort Hotel Kurosaki, Comfort Hotel Maebashi, Comfort Hotel
Tsubame-Sanjo, Comfort Hotel Kitami and Takamatsu Tokyu REI Hotel. In addition, the figures forthe properties acquired after July 2019 are calculated on the assumption INV had acquired those
properties on July 1, 2019, using the actual figures provided by the sellers of such properties for theperiod before the acquisition. Hereinafter the same shall apply.
(Note 3) “Occupancy rate” for the hotel properties is calculated in accordance with the following formula:
Occupancy rate = total number of occupied rooms during a certain period ÷ total number of rooms
available during the same period (number of rooms x number of days)
Hereinafter the same shall apply.
(Note 4) “ADR” means average daily rate, and is calculated by dividing total room sales (excluding service
fees) for a certain period by the total number of days per room for which each room was occupied
during the same period. Hereinafter the same shall apply.
(Note 5) “RevPAR” means revenues per available room per day, and is calculated by dividing total room sales
for a certain period by total number of rooms available (number of rooms x number of days) during
the same period, and is the same as the figure obtained by multiplying ADR by occupancy rates.
Hereinafter the same shall apply.
(Note 6) “Occupancy Rate” and “Average Occupancy Rate” for the portfolio or the residential properties are7

calculated by dividing the sum of total leased area by the sum of total leasable area at the end of eachmonth during the relevant period. Hereinafter the same shall apply.
(Note 7) Based on the 54 residential properties owned as of the beginning of the December 2021 fiscal period.
Of the 54 properties, seven properties which are Invoice Shin-Kobe Residence, Cosmo Court
Motomachi, Vendir Hamaotsu Ekimae, Salvo Sala, Winntage Kobe Motomachi, Corp Higashinotoin
and HERMITAGE NANBA WEST were sold on December 22, 2021. Therefore, for the sevenproperties sold, July 1, 2021 through December 21, 2021 is deemed as the operating period for the
December 2021 fiscal period, and the leased area and the leasable area as of December 21, 2021 aredeemed as them as of the end of December 2021 to calculate each number. Hereinafter the same
shall apply.
(Note 8) For the comparison of NOI for the residential properties, one-off insurance-related revenues andexpenses are excluded. NOI of seven properties which are Invoice Shin-Kobe Residence, Cosmo
Court Motomachi, Vendir Hamaotsu Ekimae, Salvo Sala, Winntage Kobe Motomachi, Corp
Higashinotoin and HERMITAGE NANBA WEST sold on December 22, 2021 is based on the data
through the day before sale date. Hereinafter the same shall apply.
(Note 9) Increase or decrease in the sum of monthly rents on new or renewal contracts, or the total of both,compared with the sum of previous rents. Hereinafter the same shall apply.
(Note 10) Renewal rate is calculated by the number of renewed contracts during the relevant period divided
by the number of contracts due up for renewal during the relevant period(Note 11) “Average Rent per Tsubo per Month” is calculated by dividing the total rental revenue (includingcommon area charges) for each month by the sum of total leased area (tsubo) at the end of each month
during the relevant period.
(Note 12) The unrealized gain is calculated using the following formula: the appraisal value as of the end of theReporting Period - book value as of the end of the Reporting Period.
The unrealized gain ratio is calculated using the following formula: the unrealized gain ÷ book value
as of the end of the Reporting Period.
(Note 13) “GOP” means the gross operating profit, and is the amount remaining after deducting costs of hotel
operations (the personnel, utility and advertising expenses and other expenses) and the management
services fee to operators (if any) from the hotel’s revenues. GOP for each fiscal period ended June
2020 and onwards includes the amount of employment adjustment subsidies to be received by thehotel operators for the respective fiscal period, which requires a certain period of time to confirm.
Therefore, the amount of GOP is subject to change retroactively upon confirmation of the amount of
employment adjustment subsidies. Moreover, if variable rent is accrued due to changes in GOP
arising from revision of the employment adjustment subsidies, we will discuss with the tenant
separately regarding the handling of such variable rent. In addition, GOP for the Sheraton GrandeTokyo Bay Hotel has been multiplied by 49%, or INV’s ownership ratio of the preferred equity
interest. Hereinafter the same shall apply.
(Note 14) The GOP of the Cayman Hotels was USD -3,775,766 in the same period of 2020 and USD 13,277,720
in the same period of 2019.

(c)

Overview of Fund Raising
As a result of the measures described below, INV’s interest-bearing debt outstanding balance was JPY
244,945 million and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2)
were 49.5% and 45.4% respectively, as of the end of the Reporting Period, with an average interest rate
(Note 3) of 0.49%.
(Note 1) Interest-Bearing Debt ratio uses the calculation formula below:
Interest-Bearing Debt ratio = total outstanding interest-bearing debt (excluding short-term
consumption tax loan) / total assets x 100(Note 2) LTV (appraisal value basis) uses the calculation formula below:
LTV = total outstanding interest-bearing debt (excluding short-term consumption tax loan)
8

/ total appraisal value (*) x 100(*) Since appraisal value for Sheraton Grande Tokyo Bay Hotel (preferred equity interest) is notavailable, the acquisition price of the preferred equity interest (JPY 17,845 million) is deemed
as appraisal value of Sheraton Grande Tokyo Bay Hotel (preferred equity interest). For
appraisal value of the Cayman Hotels, USD is converted into JPY amount via the forward
exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward contract enteredinto on July 26, 2018 and executed on September 26, 2018.
(Note 3) The average interest rate (annual rate) is calculated by the weighted average based on theoutstanding balance of borrowings and rounded to two decimal places.
(i)

Borrowing of Funds

INV borrowed New Syndicate Loan (V) on July 16, 2021, July 19, 2021, July 20, 2021 and August 2, 2021 (total
amount borrowed: JPY 40,024 million; interest rate: variable interest rate of 1-month JPY TIBOR plus 0.25000%
for a duration of one year), which was arranged by Mizuho Bank, Ltd. and Term Loan (W) on July 20, 2021 (total
amount borrowed: JPY 1,582 million; interest rate: variable interest rate of 1-month JPY TIBOR plus 0.35000%
for a duration of three years), which was arranged by The Tokyo Star Bank, Limited in order to repay (i) New
Syndicate Loan (R) in the amount of JPY 27,429 million due on July 16, 2021, (ii) one of the tranches of New
Syndicate Loan (I) in the amount of JPY 9,660 million due on July 17, 2021, (iii) Term Loan (E) in the amount of
JPY 1,582 million due on July 20, 2021, (iv) Term Loan (O) in the amount of JPY 666 million due on July 20, 2021
and (v) one of the tranches of New Syndicate Loan (J) in the amount of JPY 2,359 million due on August 2, 2021.
Moreover, INV borrowed Term Loan (X) on September 14, 2021 (total amount borrowed: JPY 3,000 million;interest rate: variable interest rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which wasarranged by Sumitomo Mitsui Banking Corporation in order to repay Term Loan (P) in the amount of JPY 3,000
million due on September 14, 2021.
Furthermore, INV borrowed New Syndicate Loan (W) on September 27, 2021 and October 13, 2021 (total
amount borrowed: JPY 11,851 million; interest rate: variable interest rate of 1-month JPY TIBOR plus 0.25000%
for a duration of one year), which was arranged by Mizuho Bank, Ltd., New Syndicate Loan (X) on October 13,
2021 (total amount borrowed: JPY 639 million; interest rate: variable interest rate of 1-month JPY TIBOR plus
0.25000% for a duration of one year), which was arranged by Mizuho Bank, Ltd. and Term Loan (Y) on October
13, 2021 (total amount borrowed: JPY 1,256 million; interest rate: variable interest rate of 1-month JPY TIBOR
plus 0.25000% for a duration of one year), which was arranged by Citibank, N.A., Tokyo Branch in order torepay (i) one of the tranches of New Syndicate Loan (J) in the amount of JPY 10,761 million due on September
26, 2021, (ii) one of the tranches of New Syndicate Loan (H) in the amount of JPY 1,867 million due on October
13, 2021, (iii) New Syndicate Loan (S) in the amount of JPY 1,539.5 million due on October 13, 2021 and (iv) Term
Loan (Q) in the amount of JPY 328.5 million due on October 13, 2021.
In addition, INV borrowed Term Loan (Z) on November 29, 2021 (total amount borrowed: JPY 4,321 million;interest rate: variable interest rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which wasarranged by Mizuho Bank, Ltd. in order to repay Term Loan (G) in the amount of JPY 7,164 million due on
November 29, 2021.

9

(d)

Overview of Sale of Assets

INV completed the sale of trust beneficiary interests in one retail facility as follows on July 2, 2021.
Property
Number
B17(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)

Property Name
Lexington Plaza
HachimanAcquisition
Price(JPY million)

Book Value
Sale Price(JPY million) (JPY million)(Note 1)
(Note 2)

3280

2,982

3,660

Gain on Sale
(JPY million)(Note 3)

Transferee(Note 4)590

KubotaHoldings

Book value shows a figure as of the date of sale.
Sale price shows a figure set forth in the purchase and sale agreement for the trust beneficiaryinterests, and do not include adjustments for property taxes, city planning taxes, or national or
local consumption taxes.
Gain on sale is calculated by deducting the book value and the transfer related cost from the saleprice.
INV does not have any capital, personnel or transactional relationship of note with the transferee.
In addition, the transferee is not related parties of INV/CIM. Furthermore, related persons andaffiliates of the transferee are not related parties of INV/CIM. Moreover, the transferee is notinterested party, etc. of INV/CIM as provided in Investment Trust Act.
Amounts are rounded down to the nearest million yen.

In addition, INV decided to sell trust beneficiary interests in 13 residential properties as follows on December 8,
2021, and completed the sale of seven properties (Invoice Shin-Kobe Residence, Cosmo Court Motomachi,
Vendir Hamaotsu Ekimae, Salvo Sala, Winntage Kobe Motomachi, Corp Higashinotoin, HERMITAGE NANBA
WEST) on December 22, 2021 and the sale of six properties (Revest Honjin, Revest Matsubara, Alba Noritake
Shinmachi, Revest Meieki Minami, Luna Court Edobori, Little River Honmachibashi) on January 12, 2022.
Sale PriceBook Value(JPY million)(JPY million)(Note 2)
(Note 1)
(Note 3)

Property
Number

Property Name

Acquisition
Price(JPY million)

A77

Invoice Shin-Kobe
Residence

1,260

1,097

A78

Cosmo Court
Motomachi

973

833

A85

Vendir Hamaotsu
Ekimae

581

478

A86

Salvo Sala

544

468

A89

Winntage Kobe
Motomachi

512

435

A91

Corp Higashinotoin

446

390

A95

HERMITAGE
NANBA WEST

355

310

A79

Revest Honjin

674

569

A80

Revest Matsubara

657

559

A82

Alba Noritake
Shinmachi

608

509

10

6,150

(Expected)
Gain on Sale
(JPY million)(Note 2)
(Note 4)

Transferee(Note 5)

1,977
Kansai
Residence
Tokutei
Mokuteki
Kaisha

4,450

1,454

Property
Number

Property Name

Sale PriceBook Value(JPY million)(JPY million)(Note 2)
(Note 1)
(Note 3)

A83

Revest Meieki
Minami

597

498

A88

Luna Court Edobori

525

457

A98

Little River
Honmachibashi

310

272

8,042

6,881

Total
(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(e)Acquisition
Price(JPY million)

10,600(Expected)
Gain on Sale
(JPY million)(Note 2)
(Note 4)

3,432

Transferee(Note 5)-

Book value shows figures as of the date of sale for the seven properties sold on December 22, 2021
and as of December 31, 2021 for the six properties sold on January 12, 2022.
Sale prices of individual properties are not disclosed as the transferee’s consent has not beenobtained for disclosure. Accordingly, the gains on sales of individual properties are notdisclosed, either.
Sale prices show the total sale prices set forth in the purchase and sale agreement for the trust
beneficiary interests, and do not include adjustments for property taxes, city planning taxes, or
national or local consumption taxes.
Gain on sale is calculated by deducting the book value and the transfer related cost (estimatedtransfer related cost for the six properties sold on January 12, 2022) from the sale price.
INV does not have any capital, personnel or transactional relationship of note with the transferee.
In addition, the transferee is not related parties of INV/CIM. Furthermore, related persons andaffiliates of the transferee are not related parties of INV/CIM. Moreover, the transferee is notinterested party, etc. of INV/CIM as provided in Investment Trust Act.
Amounts are rounded down to the nearest million yen.

Overview of Results of Operations and Distributions

As a result of the operations mentioned above, operating revenues for the Reporting Period increased by
JPY 4,600 million from the previous period (+120.9%) to JPY 8,406 million, resulting in a net income of JPY
1,014 million, an increase of JPY 4,613 million from the previous period. Unappropriated retained
earnings including the retained earnings carried forward from the preceding fiscal period (JPY 8,662
million) is JPY 9,676 million. INV has decided to set distribution per unit (excluding excess profit
distribution) of JPY 166 without reversing retained earnings.

11b

Outlook for the Fiscal Period Ending June 30, 2022

The Japanese economy is expected to remain in a severe situation caused by a new COVID-19 variant(Omicron variant), and it is necessary to closely monitor impacts of the pandemic in Japan and overseas,variables in the financial and capital markets, and other factors. However, the progress in vaccine booster
shots and popularization of a newly approved oral drug will hopefully reduce the number of patients withsevere symptoms and death toll, and lead to an improvement in the Japanese economy toward the second
half of 2022.
In the hotel market, it is expected that inbound demand will not recover for the time being, but domestic
tourism and business demand are expected to gradually recover as infectious disease prevention isstrengthened along with the enhancement of the medical system and the level of socio-economic activity rises.
In the rental housing market, lifestyle changes due to the impact of COVID-19 infections are expected to affecttenant trends, and INV will keep an eye on such trends.
(a)Future operational policy and issues to be addressed

Since July 2011, INV has focused on improving the profitability of its portfolio and strengthening its financialbase in order to enhance unitholder value with the Fortress Group as its sponsor. Fortress Group became amember of SoftBank Group in December 2017 and SoftBank Group owns 100% of issued shares of CIM
directly and indirectly as of March 29, 2018. As a result, the sponsor support for a long-term growth of INV
has been further strengthened. In addition to access to Fortress’ global real estate expertise, INV will pursue
synergies with SoftBank Group affiliates that has cutting-edge expertise in various technology fields.
INV will pay attention to an asset management with an emphasis on customer safety and security insituations where accommodation demand has declined drastically due to the impact of COVID-19, and focus
on reviewing the operational strategy to restore revenues from hotels. Going forward, INV will continue to
implement various strategies for further growth and financial stability, including the following measures.
Asset recycling: property acquisitions using the proceeds from salesInternal growth at hotels through reducing costs, stimulating existing demand and creating new
demand by collaborating with hotel operators

Further internal growth at residential properties

Details of the future growth strategy are as follows.
(i)

External growth strategy
New Property Acquisitions
As its basic strategy, INV had moved forward with the acquisition of new properties focusing on hotels,
where continued growth in portfolio revenues would be anticipated and residential properties, especiallywhere rental growth could be achieved, to build a portfolio with a good balance between growth andstability. However, for the time being, it is necessary to carefully consider the acquisition of hotel
properties, which have been greatly affected by the sluggish demand for accommodation due to COVID19, while looking for the possibility of acquiring property at an attractive price.
In regard to hotels, INV will take into consideration demands of business and leisure customers in nearby
areas, and leasing contract types when making investment decisions, with the aim of acquiring properties
where growth and stability of GOP and rental revenue are forecasted to increase.
In regard to residential properties, INV will analyze occupancy rates, rental market trends, the presenceof competing properties among other factors, and consider acquiring properties with strong
competitiveness, in which it believes it can achieve increases in rent.
Property Sales
INV considers the possibility of portfolio optimization upon consideration of the portfolio sector
composition, geographic distribution, and competitiveness of each property as appropriate in the sluggish
12accommodation demand due to the impact of COVID-19.
(ii)

Strategy for internal growth(Hotels)
Of the 84 domestic hotels (Note 1) owned by INV as of the end of the Reporting Period, 75 hotels use avariable rent scheme. In the variable rent scheme, in principle, INV receives all of the gross operating
profit (GOP) after deducting payment of management fees for the hotel operator as rents. For 73 hotelsof the 75 hotels, MHM and subsidiaries of MHM have implemented sophisticated revenue management
initiatives seeking to maximize revenue through effectively taking in accommodation demand. As aresult, INV can directly enjoy the hotel revenue upside through this variable rent scheme.
In response to the significant reduction in hotel demand, the MHM Group is taking steps to reduce hotel
operating expenses by reviewing its operational strategy. Specific measures include reduction of laborcosts as well as taking government subsidies, cutting payments to service providers such as cleaning
vendors, significantly reducing marketing expenses, utilities, and other items under the COVID-19
environment.
The MHM Group is vigorously working to stimulate demand from existing domestic customers byproviding corporate customers with diverse options including a new lineup of meeting options
highlighting strict measures to reduce the spread of COVID-19 while grasping changes in customer
demand under the “With Corona” environment. In addition, the MHM Group is focusing on creating
new demand, including the provision of day-use and special successive stay for teleworking to provide
individuals and corporates with a comfortable telework space and expansion of delivery and take-out
services through directly managed restaurants in the hotel as well as accommodation demand associatedwith the voluntary quarantine period after returning to Japan.
For hotels, renovation of rooms and replacement of fixtures and fittings are indispensable to maintain andincrease revenues and operate stably in a planned manner while considering the hotel profit situation,
where demand has dropped significantly as described above.
(Note 1) Including Sheraton Grande Tokyo Bay Hotel (the preferred equity interest).

(Residential properties and others)
INV will continue to strengthen its collaborative ties with property managers and brokers to further boost
occupancy rates and earning capabilities of its properties. With respect to INV’s residential properties,
INV will focus on increasing the occupancy rates and rents for both new lease contracts and lease renewals
for all its properties as well as formulating net leasing cost reduction policies in order to continue
maximizing profits.
Further, the implementation of appropriate maintenance and repair plans is of the utmost importance inmaintaining and enhancing the competitiveness and market value of the properties as well as ensuringhigh tenant satisfaction. Therefore, INV will continue to monitor current strategic plans with flexible
implementation as it sees fit.
(iii) Financial strategy
The long-term issuer rating and bond rating from Japan Credit Rating Agency, Ltd. (JCR) have beenchanged as follows as of February 1, 2022.
Credit Rating Object

Before Change

After Change

Long-term Issuer Rating(Outlook)A+(Negative)A(Stable)Bond RatingA+A

As it is difficult to predict when the COVID-19 pandemic will come to an end, for the time being INV will
implement initiatives that restrict an increase in interest payments upon refinancing of existing
borrowings and ensure refinancing. Over the medium to long term, INV will implement financial
13

strategies such as reduction of borrowing costs, extension of average interest-bearing debt repayment
periods, diversification of loan maturity dates and financing measures.

(iv)

Compliance risk management
While the executive director of INV concurrently serves as the representative director at CIM, two
supervisory directors (an attorney and a certified public account) oversee the execution of the executive
director’s duties via the Board of Directors of INV.
CIM has a compliance officer who is responsible for compliance with laws, regulations and other relevant
matters as well as overall management of transactions with sponsor related parties. Moreover, it has inplace a compliance committee which, chaired by such compliance officer, is in charge of deliberating on
compliance with laws, regulations and other relevant matters as well as transactions with sponsor relatedparties. Compliance committee meetings are attended by an outside expert (an attorney) who, sitting in as
a compliance committee member, conducts rigorous deliberations on the existence of conflicts of interest intransactions with sponsor related parties as well as strict examinations with respect to INV’s compliancewith laws and regulations. No resolution will be adopted unless the outside expert agrees.
When INV conducts certain transactions such as asset acquisition with sponsor related parties, priorapprovals by the Board of Directors of INV are required to ensure an objectivity in deliberation regarding
conflicts of interests. In such agenda, only two supervisory directors (a lawyer and a certified public
accountant) will participate in the vote, and the executive director who concurrently serves as therepresentative director of CIM will not participate in the vote as he is a special interested party.
INV intends to continually take steps to strengthen its compliance structure.

(v)

Initiatives for Sustainability
INV and CIM recognize the importance of environmental, social, and governance (ESG) considerations
in real estate investment management from the viewpoint of sustainability such as economic and social
development and contributing to global environmental conservation, and regard improvement ofsustainability as an important management issue. INV and CIM believe that the incorporation of ESG
considerations into the real estate investment management business, which is our primary business, isessential to maximizing unitholder value over the medium to long term and contributes to maximizing
INV's investment returns.
Thus, INV and CIM have established a “Sustainability Policy” to set basic policies for sustainability andput them into practice in our daily operations. Under this policy, CIM has formulated the “Energy
Conservation Policy”, the “Greenhouse Gas Emissions Reduction Policy”, the “Water Saving Policy” andthe “Waste Management Policy” which stipulate efforts to reduce environmental impact. In addition,
CIM are actively promoting environmental and social initiatives related to INV’s properties. CIM has
established the “Sustainable Procurement Policy” in order to promote initiatives for ESG throughout thevalue chain of INV's real estate portfolio, and concluded the “Green Lease” contract with tenants tocollaborate with tenants on measures related to the environmental consideration of real estate, such asproactive introductions of energy-saving equipment such as LED lighting. Furthermore, CIM conducts
sustainability-focused training for all officers and employees, including temporary staff, at least once a
year, to help officers and employees acquire knowledge and raise awareness of sustainability
considerations in line with business practices. In addition, as an initiative for its employees, CIM
conducts an employee satisfaction survey once every three years with the aim of improving its working
environment. CIM also introduced a paid vaccine leave so that officers and employees can receive
COVID-19 vaccines and deal with any potential side-effects.
As the COVID-19 pandemic continues, some hotels owned by INV (APA Hotel Yokohama-Kannai andHotel MyStays Oita) have been used as accommodation and medical facilities for patients with mild
symptoms or quarantine facilities for returnees from overseas in terms of social contributions.

Also,

meeting rooms at Hotel MyStays Shin Osaka Conference Center were provided as a vaccination venue.
INV will continue to recognize its social responsibility to the environment and local communities as a JREIT with hotels and residences as our core assets, and will proactively implement ESG-friendly
14

investment management and sustainability initiatives that take advantage of asset characteristics andcarry out social contribution activities.

c

Significant Subsequent Events(a)

Overview of Sale of Assets
CIM decided to sell trust beneficiary interests in six residential properties as below on December 8, 2021
and INV completed the sales on January 12, 2022.

Property
Number

Property Name

Acquisition
Price(JPY million)

A79

Revest Honjin

674

569

A80

Revest Matsubara

657

559

A82

Alba Noritake
Shinmachi

608

509

A83

Revest Meieki
Minami

597

498

A88

Luna Court Edobori

525

457

A98

Little River
Honmachibashi

310

272

3,371

2,867

Total
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

ExpectedGain on Sale
(JPY million)(Note 2)
(Note 4)

Transferee(Note 5)

4,450

1,454

Kansai
Residence
Tokutei
Mokuteki
Kaisha

4,450

1,454

-

Sale PriceBook Value(JPY million)(JPY million)(Note 2)
(Note 1)
(Note 3)

Book value shows figures as of December 31, 2021.
Sale prices of individual properties are not disclosed as the transferee’s consent has not been obtained fordisclosure. Accordingly, the expected gains on sales of individual properties are not disclosed, either.
Sale price shows a figure set forth in the purchase and sale agreement for the trust beneficiary interests, anddo not include adjustments for property taxes, city planning taxes, or national or local consumption taxes.
Expected gain on sale is calculated by deducting the book value and estimated transfer related costs fromthe sale price. An estimated amount as of today is shown and may change when the financial results forthe fiscal period ending June 2022 are finalized.
INV does not have any capital, personnel or transactional relationship of note with the transferee. In
addition, the transferee is not a related party of INV/CIM. Furthermore, related persons and affiliates of
the transferee are not related parties of INV/CIM. Moreover, the transferee is not an interested party, etc.
of INV/CIM as provided in Investment Trust Act.
Amounts are rounded down to the nearest million yen.

(Reference Information)(a)Debt Financing
INV decided to borrow Term Loan (001) and Term Loan (002) on January 20, 2022 in order to repay (i) the
Term Loan (I) in the amount of JPY 4,250 million, (ii) the Term Loan (R) in the amount of JPY 3,400 millionand (iii) the Term Loan (S) in the amount of JPY 850 million, due on January 22, 2022.

15

(i)

Term Loan (001)
Lender

MUFG Bank, Ltd.

Borrowing
Date

Outstanding
Interest Rate
Balance(annual rate)(JPY million)

January 24, 2022

1,700

Floating
interest rates(Note 1)(ii)

Maturity
Date

Borrowing
MethodJanuary 24,
2023

Unsecured/
non guarantee

Maturity
Date

Borrowing
MethodJanuary 24,
2023

Unsecured/
non guarantee

Term Loan (002)
LenderBorrowing
Date

Outstanding
Interest Rate
Balance(annual rate)(JPY million)

Sumitomo Mitsui Trust Bank,
January 24, 2022
Limited

6,800

Floating
interest rates(Note 1)

(Note 1) 1-month JPY TIBOR (Base Rate) + spread (0.25000%)d

Operational Outlook

The worldwide spread of COVID-19 has had a significant impact on hotel revenues. At this point in time, itremains difficult to predict the spread of COVID-19 and its impact on the hotel industry and operators.
Therefore, the forecast of financial results and DPU for the June 2022 fiscal period (from January 1 to June 30,2022) remains undetermined.
June 2022
Fiscal Period(Anticipated)(2)

Operating Revenues

TBD

Operating Income

TBD

Ordinary Income

TBD

Net Income

TBD

Total Distribution Amount(Including excess profit distribution)

TBD

Net Income per Unit

TBD

Distribution per Unit
(Excluding excess profit distribution)

TBD

Excess Profit Distribution per Unit

TBD

Distribution per Unit
(Including excess profit distribution)

TBD

Investment Risk

Disclosure is omitted because there have been no material changes in the “Investment Risk” section of the latest
securities report (filed on September 24, 2021).

16

2. Financial Statements(1)

Balance Sheet(Unit: JPY thousand)Fiscal period ended
June 30, 2021
(as of June 30, 2021)

AssetsCurrent assets:
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Consumption taxes receivable
Other
Total current assets
Non-current assets:
Property and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings and accompanying facilities
Accumulated depreciation
Buildings and accompanying facilities, net
Structures, at cost
Accumulated depreciation
Structures, net
Tools, furniture and fixtures, at cost
Accumulated depreciation
Tools, furniture and fixtures, net
Construction in progress
Buildings in trust, at cost
Accumulated depreciation
Buildings in trust, net
Buildings and accompanying facilities in trust, at cost
Accumulated depreciation
Buildings and accompanying facilities in trust, net
Structures in trust, at cost
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust, at cost
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property and equipment, net
Intangible assets
Leasehold rights
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Guarantee deposits
Long-term prepaid expenses
Derivatives assets
Other
Total investments and other assets
17

Fiscal period ended
December 31, 2021
(as of December 31, 2021)

6,311,545
6,528,498
1,239,770
441,992
498,14414
268,549
15,288,515

12,759,582
6,766,557
2,293,736
153,517642,21910259
22,615,883

19,406,379(931,763)
18,474,616
5,294,556(647,543)
4,647,013
1,458
(85)
1, 373

19,428,985(1,150,408)
18,278,576
5,294,556(800,261)
4,494,295
1,458
(118)
1, 3401,187,082(233,535)
953,547
637,580
164,167,367(21,027,435)
143,139,931
33,384,159(10,817,809)
22,566,350
235,988(104,094)
131,8932,800,865(1,286,332)
1,514,532
245,560,970
437,627,809

1,191,356(292,045)
899,310690,038
160,525,440(22,562,657)
137,962,783
32,459,003(11,144,094)
21,314,908
206,135(100,953)
105,182
2,876,215(1,461,143)
1,415,071
242,197,743
427,359,252

10,637,811
14,536,494
25,174,306

10,637,811
14,497,257
25,135,069

17,856,387
1,362,721
494,637
16,216
22,667
19,752,630

17,856,387
1,372,719
379,42228,054
22,667
19,659,251

(Unit: JPY thousand)Fiscal period ended
June 30, 2021
(as of June 30, 2021)
482,554,746

Fiscal period ended
December 31, 2021
(as of December 31, 2021)
472,153,573

56,65256,652497,899,915

50,34950,349494,819,805

Accounts payable
Short-term loans payable

917,33144,228,000

774,133
71,786,000

Current portion of long-term loans payable
Accounts payable-other53,315,000
26,843

48,667,000
6,235

Accrued expenses
Income taxes payable

249,410605

291,883
605

Consumption taxes payable
Advances received

597,790

540,868
558,777

Deposits received

11,083

8,813

99,346,064

122,634,316

8,200,000
143,455,000

8,200,000
116,292,000

1,657,369
94,392

1,519,983
9,729

Asset retirement obligations

33,19733,422

Total non-current liabilities

153,439,959

126,055,134

252,786,023

248,689,451

235,701,512

235,701,512

6,264,432

6,264,432

Allowance for temporary differences adjustment
Other deduction of capital surplus(6,130)(5,524,006)(6,130)(5,524,006)

Total deduction of capital surplus(5,530,137)(5,530,137)

734,294734,294

Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities:

Total current liabilities
Non-current liabilities:
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities

Total liabilities
Net assets
Unitholders’ equity:
Unitholders’ capital
Surplus:Capital surplus
Deduction of capital surplus*2

Capital surplus (net)*2

Retained earnings

8,753,480

9,676,221

Total surplus

9,487,774

10,410,516

245,189,287

246,112,028

Deferred gains or losses on hedges(75,395)

18,325

Total valuation and translation adjustments(75,395)

Total unitholders’ equity
Valuation and translation adjustments:

Total net assets*1

Total liabilities and net assets

245,113,891
497,899,915

18

18,325*1

246,130,354
494,819,805

(2)Statement of Income and Retained Earnings(Unit: JPY thousand)Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)

Operating revenue
Rental revenue―real estate*1

Gain on sale of real estate properties
Total operating revenue

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

3,806,176*1

5,837,847-*3

2,568,486
8,406,334

3,806,176

Operating expenses
Property related expenses
Management contract expenses

4,720,815*1*2

Asset management fees
Directors’ compensation

884,731300,000
4,800
25,203

Asset custody fees
Administrative service fees
Other
Total operating expenses
Operating income (loss)
Non-operating income
Interest income*1*2

4,777,042
709,774
300,000
4,800
24,73254,72049,087
162,956

242,924

6,147,595

6,113,994(2,341,419)

2,292,339

Interest on tax refund
Miscellaneous income

96
-

70
1,118

8,327

5,887

Total non-operating income

8,423

7,076

Interest expenses
Foreign exchange losses

624,616
34,513602,398
40,718Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs

27,7696,200

28,2306,303

Loan-related costs
Derivative losses

508,348
64,638596,446
10,520Non-operating expenses

Total non-operating expenses

1,266,088

1,284,617

Ordinary income (loss)(3,599,083)

1,014,799

Income (loss) before income taxes(3,599,083)

1,014,799

605

605

Income taxes
Total income taxes

605

605

Net income (loss)(3,599,688)

1,014,194

Retained earnings (deficit) brought forward

12,353,168

8,662,027

Unappropriated retained earnings (deficit)

8,753,480

9,676,221

19

(3)

Statement of Changes in Net Assets

Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Unitholders’capitalDeduction of capital surplus
Capital surplus

Balance at the
beginning of theperiodChanges during theperiodDistributions fromsurplus

Allowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

235,701,512

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

－

－

－

－

－

－

235,701,512

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during
the period
Balance at the end of
the period

Valuation and translation
adjustments

Unitholders’ equity
SurplusRetainedearnings(deficit)
Balance at the
beginning of theperiodChanges during theperiodTotal
surplusTotal
unitholders’equityDeferred
gains or losses
on hedges

Totalvaluation andtranslation
adjustments(165,929)(165,929)

Total
net assets

13,371,340

14,105,635

249,807,147

Distributions fromsurplus(1,018,172)(1,018,172)(1,018,172)(1,018,172)

Net income (loss)(3,599,688)(3,599,688)(3,599,688)(3,599,688)

Changes other thanunitholders’ equity(net)
Total changes during
the period
Balance at the end of
the period

249,641,218

90,53390,53390,533(4,617,860)(4,617,860)(4,617,860)

90,53390,533(4,527,327)

8,753,480

9,487,774

245,189,287(75,395)(75,395)

245,113,891

20

Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Unitholders’capitalDeduction of capital surplus
Capital surplus

Balance at the
beginning of theperiodChanges during theperiodDistributions fromsurplus

Allowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

235,701,512

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

－

－

－

－

－

－

235,701,512

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during
the period
Balance at the end of
the period

Valuation and translation
adjustments

Unitholders’ equity
SurplusRetainedearnings(deficit)
Balance at the
beginning of theperiodChanges during theperiodDistributions fromsurplus
Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during
the period
Balance at the end of
the period

Total
surplusTotal
unitholders’equityDeferred
gains or losses
on hedges

Totalvaluation andtranslation
adjustments(75,395)(75,395)

Total
net assets

8,753,480

9,487,774

245,189,287

245,113,891(91,452)(91,452)(91,452)(91,452)

1,014,194

1,014,194

1,014,194

1,014,194
93,72093,72093,720922,741

922,741

922,741

93,72093,7201,016,462

9,676,221

10,410,516

246,112,028

18,32518,325

246,130,354

21

(4) Statement of Cash Distribution(Unit: JPY)I

Unappropriated retained
earnings

II

Distributions

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)

8,753,480,137

9,676,221,880

91,452,600

1,012,075,440

(15)

(166)

8,662,027,537

8,664,146,440(Distribution per unit)
III

Retained earnings (deficit)
carried forward

Calculation method of distribution
amountIn accordance with the distribution policy

In accordance with the distribution policy

set forth in Article 17, Paragraph 1 of theset forth in Article 17, Paragraph 1 of the

Articles of Incorporation of INV, theArticles of Incorporation of INV, thedistribution amount shall be the amount

distribution amount shall be the amountwhich does not exceed the amount of

which does not exceed the amount of

profits but exceeds 90% of the distributableprofits but exceeds 90% of the distributableprofit as defined in Article 67-15 of the

profit as defined in Article 67-15 of theSpecial Taxation Measures Act. However,Special Taxation Measures Act. However,in the event that any tax losses arise, or if noin the event that any tax losses arise, or if no

profits have been recorded for tax purposes

profits have been recorded for tax purposesdue to tax losses carried forward, thedue to tax losses carried forward, thedistribution amount may be as reasonably

distribution amount may be as reasonably

determined by INV. Although INV

determined by INV. Pursuant to thisrecorded a net loss for the previous fiscal

policy, INV determined the distribution

period, INV determined the distribution

amount to be JPY 1,012,075,440 out of net

amount to be JPY 15 per unit by reversing

income of JPY 1,014,194,343. Moreover,retained earnings.

INV does not make excess profit
distribution set forth in Article 17,
Paragraph 4 of the Articles of Incorporation.

22

(5)

Statement of Cash Flows(Unit: JPY thousand)Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)

Cash flows from operating activities
Income (loss) before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Loan-related costs
Interest income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) of derivatives
Decrease (increase) in rental receivables
Decrease (Increase) in deposits paid
Decrease (increase) in receivable income taxes
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accounts payable
Increase (decrease) in consumption taxes payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease in property and equipment in trust due to sale
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payment into time deposits
Proceeds from time deposits
Purchases of property and equipment
Purchases of property and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Payments of tenant leasehold and security deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Borrowing related expenses
Payment of distributions of earnings
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

23

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)(3,599,083)
3,889,784
6,200
508,348(96)
652,386
51
64,638478,137(85,458)1(268,549)
17,621(578,858)
16,542(89,059)
17,773(59)0
129,029
1,159,352
96(655,468)(605)
503,374

1,014,799
3,850,520
6,303
596,446(70)
630,628
9,934
10,520(1,053,965)
288,4753
365,052(91,712)444,366(17,672)
39,458(39,012)(2,270)6,996,756(100,064)
12,948,498
70(627,312)(605)
12,320,651(2,000,000)
1,328,500(53,356)(453,398)(53,590)
38,922(1,430,000)
630,000(79,337)(511,405)(183,308)
46,056(1,192,923)(9,998)(23,203)(1,561,196)

11,835,000(2,454,000)(22,771,000)(237,904)(1,019,396)(14,647,300)(51)(15,336,901)
26,176,945*1
10,840,044

61,091,000(33,533,000)
1,582,000(33,393,000)(527,105)(93,221)(4,873,327)(32)
5,886,095
10,840,044*1
16,726,139

(6)Notes Concerning Going Concerns Assumption
Not applicable(7)

Notes Concerning Significant Accounting Policies(Notes Concerning Significant Accounting Policies)
1. Evaluation standards and evaluation method of assets(a) Investment in affiliates
Cost method through moving-average method is used.
(b) Claims generated and debt incurred through derivative transactions
Market value method is used.
2. Method of depreciation of non-current assets(a) Property and equipment (including assets in trust)The straight-line method is used.
The useful lives of major property and equipment are as follows.
Buildings
16-50 years
Buildings and accompanying facilities
5-29 years
Structures
20 years
Tools, furniture and fixtures
3-18 years
Buildings in trust
7-67 years
Buildings and accompanying facilities in trust 3-33 years
Structures in trust
10-55 years
Tools, furniture and fixtures in trust
2-20 years(b) Intangible assets
For fixed-term land lease for business purposes in Japan, the straight-line method based on the lease period
is used.
(c) Long-term prepaid expenses
The straight-line method is used.
3. Accounting treatment of deferred assets
Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line method over a period up
to redemption of the investment corporation bonds.
4. Method of calculating allowances
Allowance for doubtful accounts
To reserve for losses on doubtful accounts, allowances are provided for normal receivables using a rate
determined based on past bad debt experiences, and specific allowances are provided for accounts with apossibility of default based on the estimated amounts considered to be uncollectible by considering thecollectability of accounts on an individual basis.
5. Conversion of assets and liabilities in foreign currency into Japanese yen
Receivables and payables denominated in foreign currencies are translated into yen at the spot exchange rate
at the end of the fiscal period date, and differences arising from the translation are treated as a profit or loss.

24

6. Revenue and expense recognition(a) Accounting treatment of property taxes and other taxes
With respect to property taxes, city planning taxes and depreciable asset taxes, of the tax amount assessedand determined, the amount corresponding to the Reporting Period is accounted for as property related
expenses.
Of the amounts paid to the seller for acquisitions of real estate, the amount equivalent to property taxes iscapitalized as part of the acquisition cost of the real estate instead of being charged as expense. The amountequivalent to property taxes that was included as part of the acquisition cost of real estate during theReporting Period is zero.
(b) Recognition of revenue
The following is the content of principal performance obligations related to revenue from contracts with
INV’s customers and the normal timing for the satisfaction of such obligations (normal timing for revenue
recognition).
Sale of real estate, etc.
For the sale of real estate, etc., revenue will be recognized at the time the control of such real estate, etc. is
obtained by the purchaser, who is the customer, as the transfer obligation will be fulfilled pursuant to thecontract pertaining to the sale of real estate.
7. Method of hedge accounting(a) Method of hedge accounting
Deferred hedge accounting is used.
(b) Hedging instrument and hedged item
Hedging instrument: interest rate swap
Hedged item: interest on borrowings(c) Hedge policy
INV enters into derivative transactions for the purpose of hedging against the risks set forth in INV’s
Articles of Incorporation in accordance with its risk management policy.
(d) Method of evaluating hedge effectivenessHedge effectiveness is evaluated by comparing the cumulative amount of changes in cash flows of thehedging instrument and the cumulative amount of changes in cash flows of the hedged item and verifying
the difference in the amounts of change of both the hedged item and the hedging instrument.
8. Cash and cash equivalents as stated in Statement of Cash Flows
Cash and cash equivalents as stated in the Statement of Cash Flows consist of cash on hand and cash intrust, floating deposits, deposits in trust and short-term investments that are very liquid and realizable witha maturity of three months or less when purchased and that are not subject to significant risks of changes
in value.
9. Other matters which constitute the basis for preparation of financial statements(a) Accounting treatment of trust beneficiary interests in real estate
As to trust beneficiary interests in real estate, all accounts of assets and liabilities within assets in trust, as
well as all income generated and expenses incurred from assets in trust, are recorded in the relevant balance
sheets and income statement accounts. Of such items, the following significant trust assets and liabilities
are shown separately on the balance sheet.
(i) Cash and bank deposits in trust(ii) Buildings in trust25Buildings and accompanying facilities in trust
Structures in trust
Tools, furniture and fixtures in trust
Land in trust(iii)Leasehold rights in trust(iv)Tenant leasehold and security deposits in trust(b) Accounting treatment of consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
(8)Notes on Material Accounting Estimates
1. Valuation of non-current assets(a) Amount recorded in the financial statements for the Reporting Period(Unit: JPY million)
Impairment loss
Non-current assets
451,804(Rental Properties)
Although no impairment loss was recorded in the Reporting Period, we recognize it as a disclosure item inview of the risk of having a significant impact on the financial statements for the next fiscal period.
(b) Information about the content of material accounting estimates for the identified item
We determine whether or not there are any signs of possible impairment pertaining to rental properties
owned by INV. If there are any signs, we determine whether or not INV should recognize the impairment
loss. No impairment loss was recognized for INV’s rental properties, since future cash flows before
discounting exceed the book value of rental properties.
In estimating future cash flows, it is assumed that the adverse effect by the spread of the COVID-19 infection
will continue in 2022, but the pandemic will be gradually contained and the business environment will
recover in 2023 onwards. However, it is difficult to accurately predict when the spread of the COVID-19
infection will be contained and how much the impacts will be. Changes in the infection status may affectthe above estimates and INV may incur impairment loss.

(9)

Notes to Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition, etc.
INV has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations effective from the beginning of the Reporting Period, and it hasrecognized revenue at the time the control of promised goods or services is transferred to the customer at
the amount expected to be received upon exchange of said goods or services. This change has no impact
on the financial statements of the Reporting Period.
In accordance with the transitional treatment provided for in paragraph 89-3 of the Accounting Standard for
Revenue Recognition, Notes on Revenue Recognition for the previous fiscal period have not been presented.
Application of Accounting Standard for Fair Value Measurement, etc.
INV has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019)and relevant ASBJ regulations from the beginning of the Reporting Period, and it has applied the new
accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively inaccordance with the transitional measures provided for in paragraph 19 of the Accounting Standard for Fair
Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). This change has no impact on the financial statements of the Reporting Period.
Matters stated in Article 8-6-2, paragraph 1, item 3 of the Regulation on Terminology, Forms, and Preparation
Methods of Financial Statements after revision are omitted in accordance with the provisions of Article 2,paragraph 5 of the supplementary provisions of the “Cabinet Office Order Partially Amending the Regulation
on Terminology, Forms, and Preparation Methods of Financial Statements” (Cabinet Office Order No. 61,
September 24, 2021).

26

(10) Notes to the Financial Statements(Notes to the Balance Sheet)*1. Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations(Unit: JPY thousand)Fiscal period ended
Fiscal period ended
June 30, 2021
December 31, 2021
(as of June 30, 2021)(as of December 31, 2021)
50,00050,000*2. Allowance for temporary differences adjustment
Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
1. Reasons, related assets and amounts(Unit: JPY thousand)
Balance atthe end of
previous
periodAllowance
set aside
duringperiodBalance atthe end ofcurrent
periodReversalduringperiodRelatedassets, etc.

ReasonInitialamountLeaseholdrights intrust

Amortizationof leasehold
rights in trust(131,332)(6,130)--(6,130)(131,332)(6,130)--(6,130)Total
2. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale, etc. of the relevant property.
Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
1. Reasons, related assets and amounts(Unit: JPY thousand)
Balance atthe end of
previous
periodAllowance
set aside
duringperiod(131,332)(6,130)--(6,130)(131,332)(6,130)--(6,130)Relatedassets, etc.

ReasonInitialamountLeaseholdrights intrust

Amortizationof leasehold
rights in trust

Total

Balance atthe end ofcurrent
periodReversalduringperiod

2. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale, etc. of the relevant property.

27

(Notes to Statement of Income and Retained Earnings)*1. Real estate rental revenues and expenses(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
A. Real estate rental revenues
Rental revenue-real estate
Rent/common area charges (Note)

3,599,611

5,636,467

206,564

201,3803,806,176

5,837,847

Maintenance costs

497,596

465,075

Taxes and public dues

603,133

753,548

Other revenues
Total

B.

Real estate rental expenses

Property related expenses

Non-life insurance premium

19,012

20,2563,460,619

3,420,925

140,454

117,236

Total

4,720,815

4,777,042

C.

(914,639)

1,060,805

37,496

1,280,015

Depreciation expenses
Other expenses

Real estate rental income (A-B)(Note) Of which, revenue from variable hotel rents*2. Management contract income(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
A. Hotel operating revenue

388,076

819,087

B.

Hotel operating expenses

740,915995,357

C.

Management contract revenue (A-B)--

Management contract losses (A-B) (Note)

352,838

176,269

Non-life insurance premium

101,793

103,910Depreciation expenses

429,164

429,594

D. Management contract expenses

Other expenses
Total
E.

Management contract income (C-D)

934-

884,731

709,774(884,731)(709,774)(Note) If hotel operating expenses exceed hotel operating revenues, excess amount is recorded as management
contract losses.

28

*3. Gain on sales of properties
Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
Not applicable
Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)(Unit: JPY thousand)Lexington Plaza Hachiman
Proceeds from sales of properties

3,660,000

Cost of sales of properties

2,982,382

Other expenses on sales of properties

86,632Gain on sales of properties

590,985(Unit: JPY thousand)
Invoice Shin-Kobe Residence, Cosmo Court
Motomachi, Vendir Hamaotsu Ekimae, Salvo Sala,
Winntage Kobe Motomachi, Corp Higashinotoin,
and HERMITAGE NANBA WEST (Note)

Proceeds from sales of properties

6,150,000

Cost of sales of properties

4,014,374

Other expenses on sales of properties

158,123

Gain on sales of properties

1,977,501(Note) The sale price of individual properties is not disclosed as the transferees’ consent has not been obtained fordisclosure.
(Notes to Statement of Changes in Net Assets)
Number of issuable investment units authorized and number of investment units issued and outstanding
Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
Number of issuable investment units
Number of investment units issued andoutstanding

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

10,000,000 units

10,000,000 units

6,096,840 units

6,096,840 units(Notes to Statement of Cash Flows)*1. Relationship between cash and cash equivalents in statement of cash flows and amounts in accompanying
balance sheet is as follows:
Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

Cash and bank deposits

6,311,545

12,759,582

Cash and bank deposits in trust
Time deposits with a deposit period of more than
three months

6,528,498

6,766,557(2,000,000)(2,800,000)

10,840,044

16,726,139

Cash and cash equivalents

29

(Notes Related to Lease Transactions)Operating lease transactions (as lessee)
Unexpired lease fees
Fiscal period ended
June 30, 2021
(as of June 30, 2021)(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(as of December 31, 2021)

Due within one year

319,859

319,859

Due after one year

8,686,455

8,526,526

Total

9,006,315

8,846,385

Operating lease transactions (as lessor)
Unexpired lease fees
Fiscal period ended
June 30, 2021
(as of June 30, 2021)(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(as of December 31, 2021)

Due within one year

13,055,492

12,867,086

Due after one year

64,085,583

56,997,263

Total

77,141,076

69,864,350(Notes Related to Financial Instruments)
1.

Status of financial instruments(1) Policy for financial instruments
INV principally conducts its operations through investments in real estate and other specified assets toseek to ensure stable income in the medium to long term.
The policy for raising funds is principally through issuing new investment units, investment corporation
bonds, etc. or borrowing loans.
Derivative transactions are to be entered into for the purpose of hedging against the risks of future interest
rate fluctuations, exchange rate fluctuations, etc. and not for speculation.
Surplus funds are managed after carefully taking into account safety, liquidity, the interest rateenvironment and financing.
(2) Nature and extent of risks arising from financial instruments and risk management
The funds raised through borrowings and issuing investment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in real estate (including related acquisition costs) and forthe refinancing of existing loans. Liquidity risks relating to loans are managed by the finance departmentof CIM by preparing and updating plans for funds, and monitoring the financial covenants set forth in loan
agreements.
(3) Supplemental information regarding fair value of financial instruments
Since certain assumptions, etc. are used in estimating the fair value of financial instruments, different
assumptions, etc. may result in the variance of such value.

30

2.

Estimated fair value of financial instruments
Book value, fair value and the difference between values are as follows. “Cash and bank deposits”, “Cashand bank deposits in trust” and “Short-term loans payable” are omitted because their fair values are close
to their book values since they are settled in cash and in a short period of time. Moreover, “Tenantleasehold and security deposits in trust” is omitted because it is not material.

Fiscal period ended June 30, 2021 (as of June 30, 2021)(Unit: JPY thousand)Book Value

Fair Value

Difference

17,856,387--

Total assets

17,856,387--(2) Current portion of long-term loans payable(53,315,000)(53,315,000)-(3) Investment corporation bonds(8,200,000)(7,556,240)

643,760(143,455,000)(143,455,000)-(204,970,000)(204,326,240)

643,760(78,176)(78,176)-(1) Investment securities(4) Long-term loans payable
Total liabilities(5) Derivatives

Fiscal period ended December 31, 2021 (as of December 31, 2021)(Unit: JPY thousand)Book Value

Fair Value

Difference

17,856,387

17,320,018(536,369)

Total assets

17,856,387

17,320,018(536,369)(2) Current portion of long-term loans payable(48,667,000)(48,667,000)-(3) Investment corporation bonds(8,200,000)(7,657,040)

542,960(116,292,000)(116,292,000)-(173,159,000)(172,616,040)

542,960

18,32518,325-(1) Investment securities(4) Long-term loans payable
Total liabilities(5) Derivatives(Note 1) Items recorded in the Liabilities Section are shown in parenthesis.
(Note 2) Receivables and payables arising from derivative transactions are recorded in net amounts, and if thetotal net amount is a negative amount, such amount is shown in parenthesis.

31

(Note 1) Methods to calculate fair values of financial instruments(1) Investment securities
For preferred equity interest, the assets and liabilities of the investee are valued at fair value, and theequity equivalent in the obtained net asset value is deemed as the fair value of the preferred equity
interest.
(2) Current portion of long-term loans payable (4) Long-term loans payable
Long-term loan with floating interest rates reflecting changes in market rates within a short-term
period are stated at their book value as their book value approximate their fair value.
(3) Investment corporation bonds
Fair value is calculated using a method based on market price.
(5) Derivatives
Please refer to the “Notes Related to Derivative Transactions” below.
(Note 2) Repayment schedule of investment corporation bonds, long-term loans payable and otherinterest-bearing debts after the closing date of the fiscal period
Fiscal period ended June 30, 2021 (as of June 30, 2021)(Unit: JPY thousand)Due after
Due within Due after one Due after two
Due after four Due after
three to four
one yearto two years to three years
to five years five years
years
Current portion of longterm loans payable
Investment corporation
bonds

53,315,000

-

-

-

-

-

-

1,000,000

2,000,000

1,000,000-

4,200,000-

44,807,000

44,589,000

40,661,000

12,437,000

961,000

53,315,000

45,807,000

46,589,000

41,661,000

12,437,000

5,161,000

Long-term loans payable
Total

Fiscal period ended December 31, 2021 (as of December 31, 2021)(Unit: JPY thousand)Due after
Due within Due after one Due after two
Due after four Due after
three to four
one yearto two years to three years
to five years five years
years
Current portion of longterm loans payable
Investment corporation
bonds

48,667,000

-

-

-

-

-

-

3,000,000

1,000,000--

4,200,000-

42,405,000

34,127,000

38,799,000-

961,000

48,667,000

45,405,000

35,127,000

38,799,000-

5,161,000

Long-term loans payable
Total(Notes Related to Investment Securities)

Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
Investment in subsidiaries and affiliates
Book Value
Investment in affiliates
Total

32

(Unit: JPY thousand)Difference

Fair Value

17,856,387--

17,856,387--

Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
Investment in Subsidiaries and affiliates
Book Value
Investment in affiliates
Total(Unit: JPY thousand)Difference

Fair Value

17,856,387

17,320,018(536,369)

17,856,387

17,320,018(536,369)(Notes Related to Derivative Transactions)
1. Derivative transactions to which hedge accounting is not applied
Fiscal period ended June 30, 2021 (as of June 30, 2021)
About derivative transactions for which hedge accounting is not applied, the contract amount and theamount equivalent to the notional principal prescribed in the contracts as of the settlement of accounts are as
follows.
(Unit: JPY thousand)Classification

OTC transaction

Derivativetransaction type, etc.

Contract amount, etc.
Amount due
after one year

Currency option
transaction, short
USD/Call952,820-(Option fees)(-23,788)(-)

Currency option
transaction, long
USD/Put

952,820-(39,407)(-)(Option fees)

Fair value(Note 1)

Valuation
gains/losses(-15,962)(7,825)(13,181)(-26,226)(Note 1) Estimation method for fair value
Currency option
Indicates fair values of option fees, etc. presented by the correspondent financial
institutions.
Fiscal period ended December 31, 2021 (as of December 31, 2021)
Not applicable
2. Derivative transactions to which hedge accounting is applied
Fiscal period ended June 30, 2021 (as of June 30, 2021)
The contract amount and the amount equivalent to the notional principal prescribed in the contracts as of
the closing date under each hedge-accounting method are as shown below.
(Unit: JPY thousand)
Method of hedge
accounting

Derivativetransaction type,
etc.

Primary
hedged item

Contract amount, etc. (Note 1)
Amount due
after one year

Fair value(Note 2)

Interest rate swap
Receive floating
Borrowings(75,395)
64,648,000
50,476,000
rate/pay fixed
rate(Note 1) The contract amount, etc. for interest rate swap are stated based on a notional principal.
(Note 2) Estimation method for fair value
Interest rate swap
Estimated based on the price, etc. presented by the correspondent financial
institutions.
Principle
accounting
method33

Fiscal period ended December 31, 2021 (as of December 31, 2021)
The contract amount and the amount equivalent to the notional principal prescribed in the contracts as of
the closing date under each hedge-accounting method are as shown below.
(Unit: JPY thousand)
Method of hedge
accounting

Derivativetransaction type,
etc.

Primary
hedged item

Principle
accounting
methodInterest rate swap
Receive floating
rate/pay fixedrate

Borrowings

Contract amount, etc. (Note 1)
Amount due
after one year
64,648,000

50,476,000

Fair value(Note 2)

18,325(Note 1) The contract amount, etc. for interest rate swap are stated based on a notional principal.
(Note 2) Estimation method for fair value
Interest rate swap
Estimated based on the price, etc. presented by the correspondent financial
institutions.
(Notes Related to Retirements Payments)
Not applicable34

(Notes Related to Asset Retirement Obligations)1.

Summary of the asset retirement obligations for the period
INV has recorded asset retirement obligations in regard to its obligation to restore the land to its original
condition related to the fixed-term land lease agreement of Comfort Hotel Maebashi held by INV.

2.

Calculation method for asset retirement obligations for the period
The amount of the asset retirement obligations has been calculated by estimating the period of use at 43
years, based on the remaining period until the expiration of the fixed-term land lease agreement, and byusing a discount rate of 1.342%.

3.

Increase/decrease in the total amount of asset retirement obligations

Balance at the beginning of the period
Increase due to the acquisition of property andequipment
Accretion expense
Balance at the end of the period

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
32,977(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)
33,197--219
33,197224
33,422(Notes Related to Revenue Recognition)
1. Breakdown of revenue from contracts with customers
Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)(Unit: JPY thousand)
Revenue from contracts
Net sales to externalwith customers (Note 1)
customers
3,660,000(Note 2) 590,985
Sale of real estate, etc.
27,8707,815,349
Other
3,687,870
8,406,334
Total(Note 1) Revenue from the leasing business subject to the “Accounting Standard for Lease Transactions”(ASBJ Statement No. 13), dividend income subject to the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10) and the sale of real estate, etc. subject to the “Practical
Guidelines on Accounting by Transferors for Securitization of Real Estate Using Special Purpose
Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified
Public Accountants) are not included in “Revenue from contracts with customers” as they are notcovered by the Accounting Standard for Revenue Recognition. Major revenue from contracts withcustomers is proceeds from sale of real estate properties.
(Note 2) The sale of real estate, etc. is the amount of proceeds from sale of real estate properties, less cost ofreal estate properties and other sale expenses, as the gain (loss) on sale of real estate properties isrecorded in the statement of income pursuant to Article 48, paragraph 2 of the Regulation on
Accounting for Investment Corporations (Cabinet Office Order No. 47 of 2006).
2. Information utilized as the basis for understanding revenue from contracts with customers
Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
The information is as described in “Notes Concerning Significant Accounting Policies” above.

35

3.

Information on relationship of fulfillment of performance obligations based on contracts with customers withcashflow generated from said contracts as well as amount of revenue and period expected to be recognized in
the next calculation period or thereafter from contracts with customers existing at the end of the Reporting
Period(1) Balance of contract assets and contract liabilities, etc.
(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)
Claims generated from contracts with customers
1,534(balance at the beginning of the period)
Claims generated from contracts with customers
2,114(balance at the end of the period)
Contract assets(balance at the beginning of the period)
Contract assets(balance at the end of the period)
Contract liabilities(balance at the beginning of the period)
Contract liabilities(balance at the end of the period)(2) Transaction value allocated to remaining performance obligations
Not applicable(Notes Related to Segment and Related Information)
I. Segment Information
Disclosure is omitted because the real estate investment business is INV’s sole business and it has noreportable segments.
II. Related Information
Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category
accounted for over 90% of the operating revenue on the statement of income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan accounted for over 90% of theoperating revenue on the statement of income.
(2) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounted forover 90% of the amount of property and equipment on the balance sheet.
3. Information about each major customer(Unit: JPY thousand)Name of customer

Operating revenues
867,619

MyStays Hotel Management Co., Ltd.

36

Related segment
Real Estate Investment

Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category
accounted for over 90% of the operating revenue on the statement of income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan accounted for over 90% of theoperating revenue on the statement of income.
(2) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounted forover 90% of the amount of property and equipment on the balance sheet.
3. Information about each major customer(Unit: JPY thousand)Name of customer

Operating revenues

Related segment

MyStays Hotel Management Co., Ltd.

2,182,504

Real Estate Investment

Kansai Residence Tokutei Mokuteki Kaisha

1,977,501

Real Estate Investment

37

(Notes Related to Rental Properties)
INV owns residential properties and hotels as core assets principally in the Tokyo area and major regional cities
with an aim to establish a portfolio focusing on both stability and growth potential. The book value changed
during the period, balance at the end of the period and the fair value are as follows.

Residences

Book value

Balance at the
beginning of theperiodChange during theperiodBalance at the end of
the period

Fair value at the end of the period

Commercial
facilities

Book value

Balance at the
beginning of theperiodChange during theperiodBalance at the end of
the period

Fair value at the end of the period

HotelsBook value

Balance at the
beginning of theperiodChange during theperiodBalance at the end of
the period

Fair value at the end of the period

Total

Book value

Balance at the
beginning of theperiodChange during theperiodBalance at the end of
the period

Fair value at the end of the period

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

42,293,729

41,998,033(295,696)(4,304,561)

41,998,033

37,693,472

55,024,000

49,803,000

4,689,226

4,661,429(27,797)(3,011,821)

4,661,429

1,649,608

6,040,000

2,380,000

418,570,646

415,505,072(3,065,573)(3,043,871)

415,505,072

412,461,201

471,486,268

471,512,500

465,553,602

462,164,535(3,389,066)(10,360,253)

462,164,535

451,804,282

532,550,268

523,695,500(Note 1) Book value is the figure calculated by subtracting accumulated depreciation from acquisition price(including acquisition-related costs).
(Note 2) The major factors of increase in change during the previous fiscal period were construction work related
to capital expenditures, and the major factors of decrease were depreciation. The major factors ofincrease in change during the Reporting Period were construction work related to capital expenditures,and the major factors of decrease were sale of residential properties and a retail facility and depreciation.
(Note 3) The fair value as of the end of the period is determined based on the appraisal value or survey value
provided by Asset Research and Development Inc., Japan Real Estate Institute, JLL Morii Valuation &Advisory K.K., Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. and CBRE,
Inc. However, the sale price is deemed the fair value of six residential properties , for which thepurchase and sale agreement was entered into on December 8, 2021.
For information related to profits and losses from rental properties, please refer to “Notes to Statement of Income
and Retained Earnings.”

38

(Notes Related to Tax Accounting)
1. Significant components of deferred tax assets and liabilities(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(as of December 31, 2021)

Fiscal period ended
June 30, 2021
(as of June 30, 2021)(Deferred tax assets)
Enterprise tax payable
Buildings and other (merger)
Land (merger)
Loss carried forward (Note 1)

615

615

307,217

186,136472,381

116,724

1,662,026

1,810,135

Asset retirement obligations

10,443

10,514

Amortization of fixed-term leasehold rights
Adjustment of acquisition prices (overseas
properties)

125,223

137,567

461,428

457,482

Subtotal
Valuation allowance for tax loss carriedforwardValuation allowance for the total of deductible
temporary differences, etc.

3,039,336

2,719,176(1,662,026)(1,810,135)(1,377,309)(909,041)(3,039,336)(2,719,176)--

Subtotal (Note 2)
Total(Note 1) The amounts of tax loss carried forward and the deferred tax assets by carry-forward period are as
follows.
Fiscal period ended June 30, 2021 (as of June 30, 2021)(Unit: JPY thousand)Due within
one year

Due after
Due after
Due after
Due after
one to two two to three three to four four to five
years
years
years
years

Due after
five years

Total

Tax loss carriedforward (a)-522,444---

1,139,582 1,662,026

Valuation allowance-(522,444)---(1,139,582) (1,662,026)

Deferred tax assets

-

-

-

-

-

-

-

(a) Tax loss carried forward is multiplied by statutory tax rate.

Fiscal period ended December 31, 2021 (as of December 31, 2021)(Unit: JPY thousand)Due within
one year

Due after
Due after
Due after
Due after
one to two two to three three to four four to five
years
years
years
years

Due after
five years

Total

Tax loss carriedforward (a)201,072

320,467---

1,288,595 1,810,135

Valuation allowance(201,072)(320,467)---(1,288,595) (1,810,135)

Deferred tax assets

-

-

-

-

-

-

-

(a) Tax loss carried forward is multiplied by statutory tax rate.
(Note 2) Valuation allowance decreased by JPY 320,159 thousand mainly due to a decrease in valuation allowance
for sale of land and buildings.

39

2. Significant difference between statutory tax rate and the effective tax rate
(Unit: %)Fiscal period ended
December 31, 2021
(as of December 31, 2021)

Fiscal period ended
June 30, 2021
(as of June 30, 2021)
Statutory tax rate

-

31.46

Changes in valuation allowance-(31.46)

Others

-

0.06

0.06
Effective tax rate
(Note) Disclosure is omitted because INV recorded the loss before income taxes for the previous fiscal period.

(Notes Related to Equity-Method Income)Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
Amount of investment in affiliates
JPY 17,856,387 thousand
Amount of investment when accounted for by the equity method
JPY 17,555,222 thousand
Amount of investment profit when accounted for by the equity method JPY -65,738 thousand
Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
Amount of investment in affiliates
JPY 17,856,387 thousand
Amount of investment when accounted for by the equity method
JPY 17,487,459 thousand
Amount of investment profit when accounted for by the equity method JPY -67,763 thousand

40

(Notes Related to Transactions with Related Parties)
1. Transactions with Parent Company and Major Corporate Unitholders
Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
Balance atClassification

Interested
party of CIM

Name

Address

Statedcapital Business or(JPYoccupation
million)

Percentage
Transaction
Relationshipthe end ofof votingamountType ofthe periodrights(JPY
Account
Common Business transaction
(JPY
owned
thousand)board
relationthousand)(%)(Note 1)
membership(Note 1)Naqua Hotel &Resorts
Minato-ku,
Management
Tokyo
Co., Ltd.
(Note 2)10

Hotelbusiness--

Lessee andoperator of
hotelsRentalrevenues

Accounts
38,627 receivable

42,489MyStays HotelManagement Minato-ku,
Co., Ltd.
Tokyo(Note 2)

100

Hotel
business--

Lessee andoperator of
hotelsRentalrevenues

867,619

Accounts
receivable

945,735(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. have no capital relationship to bedisclosed with CIM. However, these tenants and operators have received an anonymous partnership investment orinvestment through funds that are managed by affiliates of FIG (a subsidiary of SoftBank Group Corp., which is a parent
company of CIM directly/indirectly owning 100% of its issued shares). Accordingly, INV treats Naqua Hotel & Resorts
Management Co., Ltd. and MyStays Hotel Management Co., Ltd. as the equivalent to interested parties.

Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
Balance atClassification

Interested
party of CIM

Name

Address

Statedcapital Business or(JPYoccupation
million)

Percentage
Transaction
Relationshipthe end ofof votingamountType ofthe periodrights(JPY
Account
Common Business transaction
(JPY
owned
thousand)board
relationthousand)
(%)
(Note
1)
membership(Note 1)Naqua Hotel &Resorts
Minato-ku,
Management
Tokyo
Co., Ltd.
(Note 2)10

Hotelbusiness--

Lessee andoperator of
hotelsRentalrevenues

MyStays HotelManagement Minato-ku,
Co., Ltd.
Tokyo(Note 2)

100

Hotel
business--

Lessee andoperator of
hotelsRentalrevenues

Accounts
721,419 receivable

422,909

Accounts
2,182,504 receivable 1,436,837(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. have no capital relationship to bedisclosed with CIM. However, these tenants and operators have received an anonymous partnership investment orinvestment through funds that are managed by affiliates of FIG (a subsidiary of SoftBank Group Corp., which is a parent
company of CIM directly/indirectly owning 100% of its issued shares). Accordingly, INV treats Naqua Hotel & Resorts
Management Co., Ltd. and MyStays Hotel Management Co., Ltd. as the equivalent to interested parties.

2.

Transactions with Affiliates
None for both the fiscal period ended June 30, 2021 and the fiscal period ended December 31, 2021.

3.

Transactions with Companies under Common Control
None for both the fiscal period ended June 30, 2021 and the fiscal period ended December 31, 2021.

41

4.

Transactions with Directors and Major Individual Unitholders
Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)

Details of transaction

Transaction
amount(JPY
thousand)(Note 3)

Account

Balance atthe end of
the period(JPY
thousand)(Note 3)

Classification

Name

Business or occupation

Ratio ofvotingrights(%)

Directors andclose relatives

Naoki
FukudaExecutive Director of
INV and President &CEO of CIM-

Payment of asset
management fees to
CIM (Note 1)

300,000

Accruedexpenses

165,000-

Payment ofadministrative
agency fees fororganizational
management to CIM(Note 2)600

Accruedexpenses

330

Same asabove(Note 1)
(Note 2)
(Note 3)Same asabove

Same as above

Naoki Fukuda served as a representative of the third party (CIM), and the fee is as set forth in the Articles ofIncorporation of INV.
Naoki Fukuda served as a representative of the third party (CIM), and the fee is as set forth in “Administrative
Agency Agreement for Organizational Management,” entered into by and between INV and CIM.
Consumption taxes, etc. are not included in the transaction amounts, but are included in the balance at the end of
the period.

Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)

Details of transaction

Transaction
amount(JPY
thousand)(Note 3)

Account

Balance atthe end of
the period(JPY
thousand)(Note 3)

Classification

Name

Business or occupation

Ratio ofvotingrights(%)

Directors
and close
relatives

Naoki
FukudaExecutive Director of
INV and President &CEO of CIM-

Payment of asset
management fees to
CIM (Note 1)

329,430

Accruedexpenses

185,295-

Payment ofadministrative
agency fees fororganizational
management to CIM(Note 2)

1,100

Accruedexpenses

880

Same asabove(Note 1)
(Note 2)
(Note 3)Same asabove

Same as above

Naoki Fukuda served as a representative of the third party (CIM), and the fee is as set forth in the Articles ofIncorporation of INV.
Naoki Fukuda served as a representative of the third party (CIM), and the fee is as set forth in “Administrative
Agency Agreement for Organizational Management,” entered into by and between INV and CIM.
Consumption taxes, etc. are not included in the transaction amounts, but are included in the balance at the end of
the period.

42

(Notes Related to Parent Company or Any Material Affiliated Company)
1. Information of parent company
Not applicable
2. Summarized financial information of material affiliated company
Kingdom Special Purpose Company was the material affiliated company during the Reporting Period, andthe summary of financial statements are as below:(Unit: JPY thousand)
Kingdom Special Purpose Company

Total specified assets
Total other assets

From October 1, 2020 From April 1, 2021
to March 31, 2021 to September 30, 2021
100,129,595
100,199,285
2,191,726
1,713,274

Total current liabilities
Total non-current liabilities

356,926
66,158,918

86,50866,158,866

Total net assets

35,805,477

35,667,184

547,658(133,555)(134,160)

525,288(137,687)(138,292)

Operating revenue
Income before income taxes
Net income(Notes Related to Per Unit Information)

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
Net assets per unit
Net income or loss per unit

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)

JPY 40,203

JPY 40,370

JPY -590

JPY 166

Net income or loss per unit is calculated by dividing net income or loss for the period by the average number ofinvestment units during the period. Diluted net income per unit for the previous fiscal period is not stated as net
loss per unit was recorded and there are no diluted units. Diluted net income per unit for the Reporting Period
is not stated as there are no diluted units.
(Note)The basis for calculating net income or loss per unit is as follows.

Net income or loss (JPY thousand)Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)(3,599,688)

Amounts not attributable to common unitholders(JPY thousand)Net income or loss attributable to common units(JPY thousand)Average number of investment units during theperiod (units)

43

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)
1,014,194--(3,599,688)

1,014,194

6,096,840

6,096,840

(Notes Related to Significant Subsequent Events)
1. Sale of Asset
INV completed the sale of the following six properties on January 12, 2022.
Property Number: A79 Revest Honjin
Sale Date

January 12, 2022

Location

Nagoya-shi, Aichi

Book Value (Note 1)

JPY 569 million

Sale Price (Note 2)

Undisclosed

Expected Gain on Sale (Note 3)

Undisclosed

TransfereeKansai Residence Tokutei Mokuteki Kaisha

Legal Form of Asset

Trust beneficiary interest

Property Number: A80 Revest Matsubara
Sale Date

January 12, 2022

Location

Nagoya-shi, Aichi

Book Value (Note 1)

JPY 559 million

Sale Price (Note 2)

Undisclosed

Expected Gain on Sale (Note 3)

Undisclosed

TransfereeKansai Residence Tokutei Mokuteki Kaisha

Legal Form of Asset

Trust beneficiary interest

Property Number: A82 Alba Noritake Shinmachi
Sale Date

January 12, 2022

Location

Nagoya-shi, Aichi

Book Value (Note 1)

JPY 509 million

Sale Price (Note 2)

Undisclosed

Expected Gain on Sale (Note 3)

Undisclosed

TransfereeKansai Residence Tokutei Mokuteki Kaisha

Legal Form of Asset

Trust beneficiary interest

Property Number: A83 Revest Meieki Minami
Sale Date

January 12, 2022

Location

Nagoya-shi, Aichi

Book Value (Note 1)

JPY 498 million

Sale Price (Note 2)

Undisclosed

Expected Gain on Sale (Note 3)

Undisclosed

TransfereeKansai Residence Tokutei Mokuteki Kaisha

Legal Form of Asset

Trust beneficiary interest

Property Number: A88 Luna Court Edobori
Sale Date

January 12, 2022

Location

Osaka-shi, Osaka

Book Value (Note 1)

JPY 457 million

Sale Price (Note 2)

Undisclosed

Expected Gain on Sale (Note 3)

Undisclosed

TransfereeKansai Residence Tokutei Mokuteki Kaisha

Legal Form of Asset

Trust beneficiary interest

44

Property Number: A98 Little River Honmachibashi
Sale Date

January 12, 2022

Location

Osaka-shi, Osaka

Book Value (Note 1)

JPY 272 million

Sale Price (Note 2)

Undisclosed

Expected Gain on Sale (Note 3)

Undisclosed

TransfereeKansai Residence Tokutei Mokuteki Kaisha

Legal Form of Asset

Trust beneficiary interest(Note 1)
(Note 2)As of December 31, 2021.
Sale price does not include adjustments for property taxes or city planning taxes, or national or local
consumption taxes. The sale price of individual properties is not disclosed as the transferee’s consent has
not been obtained for disclosure. Accordingly, the expected gain on sale of individual properties is notdisclosed either. The total sale price is JPY 4,450 million and the total expected gain on sale is 1,454 million
for six properties above.
(Note 3) Expected gain on sale is calculated by deducting the book value and estimated transfer related costs fromthe sale price.
(Note 4) For details of the sold properties, please refer to “(2) Real Estate Properties, Etc.” of “3. Reference Information”
as described below.

45

(11) Changes in Total Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital for the past
five years up to the end of the Reporting Period are as follows.

Date

Type of Issue

February 22, 2017

Reversal of
allowance fortemporarydifferences
adjustment

March 13, 2017

Total Number of
Investment Units Issued andOutstanding (units)
Increase

Unitholders’ Capital (JPY)

Reference

Total

Increase-

3,675,824

224,225,264

120,591,496,700(Note 1)

Public offering

185,000

3,860,824

8,393,450,000

128,984,946,700(Note 2)October 12, 2017

Public offering

887,959

4,748,783

37,917,625,218

166,902,571,918(Note 3)

November 1, 2017

Third-party
allotment

44,3984,793,181

1,895,883,396

168,798,455,314(Note 4)

August 1, 2018

Public offering

909,524

5,702,705

40,280,089,388

209,078,544,702(Note 5)

August 21, 2018

Third-party
allotment

45,476

5,748,181

2,013,995,612

211,092,540,314(Note 6)

December 28, 2018

Retirement(81,341)

5,666,840-

211,092,540,314(Note 7)

July 18, 2019

Public offering

409,524

6,076,364

23,317,887,036

234,410,427,350(Note 8)20,476

6,096,840

1,165,882,964

235,576,310,314(Note 9)-6,096,840

125,201,855

August 15, 2019

August 22, 2019

Third-party
allotment
Reversal of
allowance fortemporarydifferences
adjustment(Note 1)

Total

235,701,512,169 (Note 10)

Reversal of allowance for temporary differences adjustment was decided at the meeting of the Board of Directors of
INV held on February 22, 2017 and the amount was incorporated into unitholders’ capital.
(Note 2) New investment units were issued through public offering at a price of JPY 46,897 per unit (JPY 45,370 after deducting
the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 3) New investment units were issued through public offering at a price of JPY 44,118 per unit (JPY 42,702 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 4) New investment units were issued through third-party allotment at a price of JPY 42,702 per unit for the purposeof allocation to cash reserves to be used as part of the funds for future acquisition of specified assets.
(Note 5) New investment units were issued through public offering at a price of JPY 45,776 per unit (JPY 44,287 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 6) New investment units were issued through third-party allotment at a price of JPY 44,287 per unit for the purposeof raising a part of the funds for the acquisition of new properties.
(Note 7) INV acquired own investment units from December 13, 2018 to December 18, 2018 (on a trade date basis) throughthe market purchase at Tokyo Stock Exchange based on a discretionary transaction contract with a security
company.
INV resolved the retirement of all the acquired own investment units at the Board of Directors' Meeting held on
December 25, 2018 and the acquired own investment units were retired on December 28, 2018.
The acquisition of own investment units was conducted using capital surplus, and thus there is no change tounitholders’ capital.
(Note 8) New investment units were issued in a public offering at a price of JPY 58,898 per unit (JPY 56,939 after deducting
the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 9) New investment units were issued in a third-party allotment at a price of JPY 56,939 per unit for the purpose ofraising a part of the funds for the acquisition of specified properties.
(Note 10) Reversal of allowance for temporary differences adjustment was decided at the meeting of the Board of Directors of
INV held on August 22, 2019 and the amount was incorporated into unitholders’ capital.

46

3. Reference Information(1)

Type ofasset

Composition of INV’s Assets

Geographic
area

PurposeFiscal period ended June 30, 2021
(as of June 30, 2021)
Percentage of
total assets(%)

Amount held
(JPY million)

2

0.0

1

0.0

-

-

-

-

Overseas (Note 4)

34,7127.0

34,3096.9

Subtotal

34,7147.0

34,311

6.9

34,7147.0

34,311

6.9

28,937

5.8

28,7795.8

13,060

2.6

8,913

1.8

41,998

8.4

37,693

7.6

-

-

-

-

4,661

0.9

1,649

0.3

4,661

0.9

1,649

0.3

169,41734.0

168,54034.1

211,37342.5

209,60942.4

380,79076.5

378,149

76.4(Note 1)

Amount held
(JPY million)(Note 2)Real
estateHotelsGreater Tokyo
area (Note 3)
Major regional
CitiesTotal real estate

Residences

Greater Tokyo
area
Major regional
citiesSubtotal

Greater Tokyo
area
Real
Offices/Commercial
Major regional
estate infacilities
citiestrust
Subtotal

HotelsFiscal period ended December 31, 2021
(as of December 31, 2021)

Greater Tokyo
area
Major regional
citiesSubtotal(Note 2)

Percentage of
total assets(%)

Total real estate in trust

427,45085.9

417,492

84.4

Preferred equity interest (Note 5)

17,856

3.6

17,856

3.6

Deposits and other assets

17,878

3.6

25,1595.1

497,899100.0

494,819100.0(462,164)(92.8)(451,804)(91.3)

Total assets (Note 6)(Note 1)“Greater Tokyo area” refers to Tokyo, Kanagawa, Chiba and Saitama.

(Note 2) “Amount held” is from the balance sheet as of the end of the Reporting Period (book value after depreciation for real estate,leasehold and real estate in trust). The amounts held for hotels are calculated by including book value of accompanying FF&E,
in principle.
(Note 3)(Note 4)(Note 5)(Note 6)

While Hotel MyStays Haneda is held as trust beneficiary interests, part of accompanying FF&E is held in kind, which falls under
this category.
The Leasehold of the Cayman Hotels falls under the category of “Real estate” for “Overseas.” The leasehold interests are therights equivalent to long-term real estate leasehold rights for buildings and land under the laws of the Cayman Islands (Term:
99 years; annual lease payment: USD 1 or KYD 1). INV implemented an investment structure change regarding “Westin Grand
Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort” on May 9, 2019 (Cayman Islands local time), a change
from making investments based on the TK agreement to directly owning the Leasehold of the Cayman Hotels, which were theunderlying assets of the TK.
Preferred equity interest issued by Kingdom Special Purpose Company, with the Sheraton Grande Tokyo Bay Hotel as anunderlying asset (asset in trust of trust beneficiary interest acquired by Kingdom Special Purpose Company, which is the realestate that serves as the main source of revenue for Kingdom Special Purpose Company).
The figures indicated in parenthesis under “Total assets” show the amounts related to owned real estate (excluding the amountof preferred equity interest)47

Fiscal period ended June 30, 2021
(as of June 30, 2021)
Percentage ofAmount (JPY million)
total assets (%)

Fiscal period ended December 31, 2021
(as of December 31, 2021)
Percentage ofAmount (JPY million)
total assets (%)

Total Liabilities

252,78650.8

248,689

50.3

Total Net Assets

245,11349.2

246,130

49.7

Total Liabilities
and Net Assets

497,899100.0

494,819

100.0

(2)

Real Estate Properties, Etc.
The following summarizes the real estate assets (real estate or trust beneficiary interest comprised mainlyof real estate) as well as preferred equity interest held by INV as of the end of the Reporting Period.

aPrice and investment percentage

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)
Trust
Nisshin Palacestage
beneficiaryA26
1-31-2 Izumi, Suginami-ku, Tokyo
1,251
1,076
0.3
1,250
A
Daitabashi
interests(Note 8)Trust
2-26-6 Nishi-Gotanda,
A28 Growth Maison Gotanda
beneficiary
888
821
0.2
1,060
A
Shinagawa-ku, Tokyo
interests
Trust
Growth Maison
A29
6-58-16 Kameido, Koto-ku, Tokyo beneficiary
1,070
941
0.2
1,210
A
Kameidointerests
Trust
3-27-18 Itabashi, Itabashi-ku,
A30 Emerald House
beneficiary
1,505
1,313
0.3
1,410
A
Tokyo
interests
Trust
3-15-35 Takanodai, Nerima-ku,
beneficiary
A32 Suncrest Shakujii-Koen
1,088
1,044
0.2
1,160
A
Tokyo
interests(Note 8)Trust
Growth Maison Shin3-16-2 Shin-Yokohama, Kohoku- beneficiary
A33
1,059
918
0.2
1,210
A
Yokohama
ku, Yokohama-shi, Kanagawa
interests(Note 8)
Trust
Belle Face Ueno1-27-5 Higashi-Ueno, Taito-ku,
beneficiary
A34
1,023
908
0.2
1,090
A
Okachimachi
Tokyointerests(Note 8)Trust
beneficiary
A35 Grand Rire Kameido
3-39-12 Kameido, Koto-ku, Tokyo
906
776
0.2
1,030
A
interests(Note 8)Trust
1-15-15 Okamoto, Setagaya-ku,
beneficiary
A37 Growth Maison Yoga
795
716
0.2
803
A
Tokyo
interests(Note 8)Trust
3-7-6 Nishikicho, Tachikawa-shi,
A38 Route Tachikawa
beneficiary
676
634
0.1
675
A
Tokyo
interests
Trust
Shibuya-Honmachi
2-35-2 Honmachi, Shibuya-ku,
beneficiary
A39
651
706
0.1
685
A
MansionTokyo
interests(Note 8)48

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)Trust
4-13-15 Kinuta, Setagaya-ku,
A40 City Heights Kinuta
beneficiary
646
651
0.1
577
A
Tokyo
interests
Trust
2-5-13 Namiki, Kawaguchi-shi,
Acseeds Tower
beneficiary
A41
620
502
0.1
766
A
Saitama
Kawaguchi-Namiki
interests(Note 8)Trust
3-4-4 Nakamachi, Machida-shi,
beneficiary
A43 College Square Machida
589
556
0.1
507
A
Tokyo
interests(Note 8)Trust
beneficiary
A44 Belair Meguro
1-2-15 Meguro, Meguro-ku, Tokyo
589
545
0.1
640
A
interests(Note 8)Trust
2-7-47 Tarumachi, Kohoku-ku,
beneficiary
A45 Wacore Tsunashima I
572
518
0.1
543
A
Yokohama-shi, Kanagawa
interests(Note 8)Trust
1-6-6 Kouyama, Nerima-ku,
beneficiary
A46 Foros Nakamurabashi
566
493
0.1
604
A
Tokyo
interests(Note 8)Trust
5-29-51 Kaijin, Funabashi-shi,
beneficiary
A47 Growth Maison Kaijin
557
529
0.1
527
A
Chiba
interests(Note 8)Trust
7-3-1 Arakawa, Arakawa-ku,
beneficiary
A48 College Square Machiya
510
434
0.1
580
A
Tokyo
interests(Note 8)
Trust
Towa City Coop
5-49-7 Higashi-Ikebukuro,
beneficiary
A59
866
790
0.2
1,340
B
Shinotsuka II
Toshima-ku, Tokyo
interests
Trust
1-22-7 Sekimachi-Kita, Nerima-ku,
beneficiary
A61 Bichsel Musashiseki
577
567
0.1
856
C
Tokyo
interests
Trust
Towa City Coop
4-338-2 Sengencho, Nishi-ku,
beneficiary
A63
1,110
1,001
0.2
1,470
B
Sengencho
Yokohama-shi, Kanagawa
interests
Trust
2-11-10 Omachi, Aoba-ku,
beneficiary
A64 Royal Park Omachi
415
383
0.1
701
B
Sendai-shi, Miyagi
interests
Trust
Lexington Square
1-15-16 Haginomachi,
beneficiary
A65
330
260
0.1
441
B
Haginomachi
Miyagino-ku, Sendai-shi, Miyagi
interests
Trust
2-44 Otanacho, Chikusa-ku,
beneficiary
A66 Visconti Kakuozan
255
229
0.1
303
D
Nagoya-shi, Aichi
interests
Trust
Lexington Square Honjo 4-20-6 Higashikomagata,beneficiary
A72
511
407
0.1
703
D
Azumabashi
Sumida-ku, Tokyo
interests
Trust
AMS TOWER Minami
2-5-15 Minami 6-Jo Nishi,
beneficiary
A73
1,180
875
0.2
1,230
D
6-Jo
Chuo-ku, Sapporo-shi, Hokkaido
interests
Trust
2-13 Toriidori Nakamura-ku,
beneficiary
A79 Revest Honjin (Note 9)
674
569
0.1
878
B
Nagoya-shi, Aichi
interests
Trust
Revest Matsubara
3-13-12 Matsubara Naka-ku,
beneficiary
A80
657
559
0.1
867
B
(Note 9)
Nagoya-shi, Aichi
interests

49

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)
Trust
Alba Noritake Shinmachi 3-6-8 Noritake Shinmachi, Nishibeneficiary
A82
608
509
0.1
797
B
(Note 9)ku, Nagoya-shi, Aichi
interests
Trust
Revest Meieki Minami
2-13-33 Meieki-Minami,
beneficiary
A83
597
498
0.1
834
B
(Note 9)Nakamura-ku, Nagoya-shi, Aichi
interests
Trust
2-13-17 Heian, Kita-ku,
beneficiary
A84 Revest Heian
595
502
0.1
809
B
Nagoya-shi, Aichi
interests
Trust128-1 Yamabukicho Shinjuku-ku,
beneficiary
A87 Excellente Kagurazaka
543
491
0.1
761
B
Tokyo, and one other parcel
interests
Trust
Luna Court Edobori
3-4-11 Edobori, Nishi-ku,
beneficiary
A88
525
457
0.1
641
B
(Note 9)Osaka-shi, Osakainterests
Trust
A90 Queen's Court Fukuzumi 1-3-10 Fukuzumi, Koto-ku, Tokyo beneficiary
456
411
0.1
737
B
interests
Trust
5-14-17 Higashi-Oi, Shinagawabeneficiary
A92 Belair Oimachi
412
379
0.1
619
B
ku, Tokyo
interests
Trust
3-18 Minami-Tsukaguchimachi,
beneficiary
A93 Siete Minami-Tsukaguchi
374
334
0.1
496
B
Amagasaki-shi, Hyogo
interests
Trust
Prime Life Sannomiya
4-3-23 Isogamidori, Chuo-ku,
beneficiary
A94
373
328
0.1
522
B
Isogami Koen
Kobe-shi, Hyogo
interests
Trust
Century Park Shinkawa 4-1-2 Shinkawacho, Minato-ku,
beneficiary
A96
335
297
0.1
490
B
1-bankan
Nagoya-shi, Aichi
interests
Trust
A97 West Avenue
1-5-17 Nishi, Kunitachi-shi, Tokyo beneficiary
331
308
0.1
369
B
interests
Trust
Little River
1-34 Honmachibashi, Chuo-ku,
beneficiary
A98
310
272
0.1
437
B
Honmachibashi (Note 9) Osaka-shi, Osakainterests
Trust
2-25-11 Mikage Tsukamachi,
beneficiary
A99 Prime Life Mikage
297
262
0.1
379
B
Higashinada-ku, Kobe-shi, Hyogo
interests
Trust
5-45-10 Mukojima, Sumida-ku,
beneficiary
A101 Lieto Court Mukojima
1,683
1,609
0.3
2,180
B
Tokyo
interests
Trustbeneficiary
A102 Lieto Court Nishi-Ojima 2-41-14 Ojima, Koto-ku, Tokyo
1,634
1,558
0.3
2,130
B
interests
Trust
5-38 Fudegasakicho, Tennouji-ku,
beneficiary
A103 Royal Parks Momozaka
2,910
2,573
0.6
3,330
C
Osaka-shi, Osakainterests
Trust
3-35-20 Shinden, Adachi-ku,
beneficiary
A104 Royal Parks Shinden
5,024
4,630
1.0
6,010
C
Tokyo
interests
Trust
Royal Parks Seasir
3-41-7 Minami-Senju, Arakawabeneficiary
A106
2,683
2,530
0.5
3,150
B
Minami-Senju
ku, Tokyo
interests
Subtotal (47 properties)

B18

AEON TOWN Sukagawa

105 Furukawa, Sukagawa-shi,
Fukushima

Trust
beneficiaryinterests

Subtotal (1 property)

50

41,836

37,6938.5

49,807

-

2,320

1,649

0.5

2,380

C

2,320

1,649

0.5

2,380

-

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)Trust
1-2-2 Iwamotocho, Chiyoda-ku,
beneficiary
D01 Hotel MyStays Kanda
2,851
2,849
0.6
4,900
B
Tokyo
interests
Trust
D02 Hotel MyStays Asakusa 1-21-11 Honjo, Sumida-ku, Tokyo beneficiary
2,584
2,474
0.5
4,400
B
interests
Trust
52, Kasabokocho, Higashiiru,
Hotel MyStays Kyotobeneficiary
D03
Aburanokoji, Shijyodori,
6,024
5,606
1.2
9,080
B
Shijo
interests
Shimogyo-ku, Kyoto-shi, Kyoto
Trust
MyStays Shin-Urayasu
D04
2-1-4 Akemi, Urayasu-shi, Chiba beneficiary
4,930
4,452
1.0
7,200
B
Conference Centerinterests
Trust
3-5-1 Tekkodori, Urayasu-shi,
beneficiary
D05 Hotel MyStays Maihama
4,870
4,576
1.0
6,800
B
Chiba
interests
Trust
Hotel MyStays Premier 2-4-1 Sonezakishinchi, Kita-ku,
beneficiary
D06
3,845
3,607
0.8
6,410
B
DojimaOsaka-shi, Osakainterests
Trust
Hotel MyStays Nagoya- 2-23-22 Higashi-Sakura, Naka-ku,
beneficiary
D07
2,958
2,531
0.6
5,520
B
Sakae
Nagoya-shi, Aichi
interests
Trust
Hotel MyStays
1-4-8 Awaji-machi, Chuo-ku,
beneficiary
D08
2,514
2,278
0.5
3,590
B
Sakaisuji-Honmachi
Osaka-shi, Osakainterests
Trust
Hotel MyStays
4-81 Sueyoshicho, Naka-ku,
beneficiary
D09
2,119
2,184
0.4
3,890
B
Yokohama
Yokohama-shi, Kanagawa
interests
Trust
5-43-7 Higashi-Nippori,beneficiary
D10 Hotel MyStays Nippori
1,898
1,752
0.4
2,510
B
Arakawa-ku, Tokyo
interests
Trust
Hotel MyStays
3-14-20 Haruyoshi, Chuo-ku,
beneficiary
D11
1,570
1,415
0.3
5,550
B
Fukuoka-Tenjin-Minami Fukuoka-shi, Fukuoka
interests
Trust
3-26 Shin-Ogawamachi,
beneficiaryD12 Flexstay Inn Iidabashi
1,381
1,320
0.3
2,090
B
Shinjuku-ku, Tokyo
interests
Trust
Hotel MyStays Ueno
D13
1-5-7 Matsugaya, Taito-ku, Tokyo beneficiary
1,331
1,198
0.3
2,000
B
Inarichointerests
Trust
1-22-19 Kita-Shinagawa,beneficiaryD14 Flexstay Inn Shinagawa
1,242
1,176
0.3
1,980
B
Shinagawa-ku, Tokyo
interests
Trust
1-52-5 Tokiwadai, Itabashi-ku,
beneficiary
D15 Flexstay Inn Tokiwadai
1,242
1,178
0.3
2,120
B
Tokyo
interests
Trust
3-6-16 Sugamo, Toshima-ku,
beneficiaryD16 Flexstay Inn Sugamo
1,192
1,083
0.2
2,200
B
Tokyo
interests
Trust
1-3-2 Tokuicho, Chuo-ku,
beneficiary
D17 Hotel MyStays Otemae
1,192
1,125
0.2
2,410
B
Osaka-shi, Osakainterests
Trust
Hotel MyStays Kiyosumi
beneficiary
D18
1-12-16 Tokiwa, Koto-ku, Tokyo
749
858
0.2
1,460
B
Shirakawainterests
Trust
Flexstay Inn Nakanobu 4-27-12 Futaba, Shinagawa-ku,
beneficiary
D19
589
550
0.1
803
B
P1
Tokyo
interests
Trust
Flexstay Inn Nakanobu 4-27-8 Futaba, Shinagawa-ku,
beneficiary
D20
283
277
0.1
387
B
P2
Tokyo
interests
Trust
APA Hotel Yokohama- 3-37-2 Sumiyoshicho, Naka-ku,
beneficiary
D21
8,350
7,380
1.7
9,930
B
Kannai
Yokohama-shi, Kanagawa
interests

51

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)
Trust
Hotel MyStays
26-17 Honcho, Hakodate-shi,
beneficiary
D22
2,792
2,665
0.6
3,910
B
Hakodate-Goryokaku
Hokkaido
interests
Trust
5-10-15 Shirokane, Minato-ku,
beneficiary
D23 Flexstay Inn Shirogane
2,119
2,063
0.4
2,360
B
Tokyo
interests
Trustbeneficiary
D24 Hotel MyStays Haneda 5-1-13 Haneda, Ota-ku, Tokyo
7,801
7,070
1.6
8,380
B
interests
Trust
Hotel MyStays Kameido
D25
6-32-1 Kameido, Koto-ku, Tokyo beneficiary
5,594
5,258
1.1
7,200
B
P1
interests
Trust
Hotel MyStays Ueno
5-5-13 Higashi-Ueno, Taito-ku,
beneficiary
D26
3,821
3,602
0.8
3,760
B
IriyaguchiTokyo
interests
Trust
Hotel MyStays Kameido
beneficiaryD27
6-7-8 Kameido, Koto-ku, Tokyo
3,742
3,488
0.8
4,810
B
P2
interests
Trust
1-23 Masagocho, Shimizu-ku,
beneficiary
D28 Hotel MyStays Shimizu
2,198
2,043
0.4
2,390
B
Shizuoka-shi, Shizuoka
interests
Trust
Super Hotel Shinbashi/ 5-16-4 Shinbashi, Minato-ku,
beneficiary
D29
1,624
1,571
0.3
1,930
B
KarasumoriguchiTokyo
interests
Trustbeneficiary
D30 Flexstay Inn Higashi-Jujo 2-10-2 Nakajujo, Kita-ku, Tokyo
1,277
1,258
0.3
1,300
B
interests
Trust
Hotel MyStays
2-4-1 Higashi-Shukugo,
beneficiary
D31
1,237
1,179
0.3
2,010
B
Utsunomiya
Utsunomiya-shi, Tochigi
interests
Trust
Flexstay Inn Kawasaki- 1-13-2 Kaizuka, Kawasaki-ku,
beneficiary
D32
980
874
0.2
1,110
B
Kaizuka
Kawasaki-shi, Kanagawa
interests
Trust
1-3-2 Takara-machi, Toyama-shi,
beneficiary
D33 Comfort Hotel Toyama
979
889
0.2
1,160
B
Toyamainterests
Trust
Flexstay Inn Kawasaki- 15-9 Ogawacho, Kawasaki-ku,
beneficiary
D34
906
862
0.2
889
B
Ogawacho
Kawasaki-shi, Kanagawa
interests
Trust
D35 Flexstay Inn Ekoda
8-6 Sakaecho, Nerima-ku, Tokyo beneficiary
5,069
4,754
1.0
4,580
B
interests
Trust
Super Hotel Tokyo-JR
2-21-9 Akebonocho, Tachikawabeneficiary
D36
1,170
1,071
0.2
1,240
E
Tachikawa Kitaguchi
shi, Tokyo
interests
Trust
Super Hotel JR UenobeneficiaryD37
7-9-14 Ueno, Taito-ku, Tokyo
1,130
1,058
0.2
1,180
E
iriyaguchiinterests
Trust
Hotel MyStays
1-9-30 Nishi-Shinsaibashi,
beneficiary
D38
3,160
2,969
0.6
2,340
B
Shinsaibashi
Chuo-ku, Osaka-shi, Osakainterests
Trust
3-13-13 Kurosaki, Yahatanishi-ku,
beneficiary
D39 Comfort Hotel Kurosaki
1,148
1,016
0.2
1,240
E
Kitakyusyu-shi, Fukuoka
interests
Trust
2-18-14 Omotecho, Maebashi-shi,
beneficiary
D40 Comfort Hotel Maebashi
1,128
969
0.2
1,120
E
Gunma
interests
Trust
Comfort Hotel TsubamebeneficiaryD41
2-115 Sugoro, Sanjo-shi, Niigata
1,010
906
0.2
1,080
E
Sanjo
interests
Trust
3-4 Ohdori-Nishi, Kitami-shi,
beneficiary
D42 Comfort Hotel Kitami
851
758
0.2
915
E
Hokkaido
interests

52

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)
Trust
Hotel MyStays Gotanda 2-6-8 Nishi-Gotanda,
beneficiaryD43
26,523
26,231
5.4
23,700C
Station (Note 10)
Shinagawa-ku, Tokyo
interests
Trust
1-10 Kaidoue, Oaza-Takakuhei,
beneficiary
D44 Hotel Epinard Nasu
Nasu-machi, Nasu-gun, Tochigi
20,981
18,847
4.2
22,600C
interests(and 59 other parcels)
Trust
Hotel MyStays Fukuoka 3-5-7 Tenjin, Chuo-ku, Fukuokabeneficiary
D45
8,059
7,741
1.6
7,990
C
Tenjinshi, Fukuoka
interests
Trust
Hotel MyStays
1-18-14 Hamamatsucho, Minatobeneficiary
D46
7,959
7,814
1.6
6,120
C
Hamamatsucho
ku, Tokyo
interests
Trust
Hotel MyStays Premier 2-13-1 Hirooka, Kanazawa-shi,
beneficiary
D47
13,761
12,5822.8
12,700C
Kanazawa
Ishikawa
interests
Trust
Takamatsu Tokyu REI
9-9 Hyogomachi, Takamatsu-shi,
beneficiary
D48
2,139
2,078
0.4
2,240
E
Hotel
Kagawainterests
Trust
Hotel MyStays Premier 1-8-5 Hamamatsucho, Minato-ku,
beneficiary
D49
8,000
7,946
1.6
10,300B
HamamatsuchoTokyo
interests
Trust
Hotel MyStays Shin
6-2-19 Nishinakashima,
beneficiary
D50
13,06812,8282.6
12,800D
Osaka Conference Center Yodogawa-ku, Osaka-shi, Osakainterests
Trust
Hotel MyStays Premier 6-19-3 Minami Oi, Shinagawa-ku,
beneficiary
D51
9,781
9,687
2.0
9,640
D
Omori
Tokyo
interests
Trustbeneficiary
D52 Beppu Kamenoi Hotel
5-17 Chuo cho, Beppu-shi, Oita
8,870
7,785
1.8
8,670
D
interests
Trust
Hotel MyStays Sapporo 4-15 Kita Hachijyo Nishi, Kita-ku,
beneficiary
D53
7,880
7,562
1.6
8,180
D
Station
Sapporo-shi, Hokkaido
interests
Trust
5-65, Onoe-cho, Naka-ku,
Hotel MyStays
beneficiary
D54
Yokohama-shi, Kanagawa and
5,326
5,114
1.1
5,250
D
Yokohama Kannaiinterests
3 other lots
Trust
5-1-11, Hon-cho Joetsu-shi,
beneficiary
D55 Art Hotel Joetsu
2,772
2,601
0.6
2,690
D
Niigatainterests
Trust
1-1-2, 1-1-6, 1-1-7, 1-2-1, Omachi,
beneficiary
D56 Art Hotel Hirosaki City
2,723
2,504
0.6
2,740
D
Hirosaki-shi, Aomori
interests
Trustbeneficiary
D57 Hotel MyStays Oita
1-32, Niagemachi Oita-shi, Oita
1,604
1,467
0.3
1,560
D
interests
Trust
2-5-4, Higashigotanda
beneficiary
D58 Hotel MyStays Gotanda
4,068
4,043
0.8
3,930
D
Shinagawa-ku, Tokyo
interests
Trust
Hotel MyStays
1-8-14, Nishiki-cho Tachikawabeneficiary
D59
3,257
3,180
0.7
3,320
E
Tachikawashi, Tokyo
interests
Trust
Hotel MyStays Premier 2-17-54, Akasaka Minato-ku,
beneficiary
D60
20,691
20,286
4.2
23,100B
AkasakaTokyointerests
Trust
Hotel MyStays Premier 2-2-10, Minamikujonishi Chuobeneficiary
D61
16,731
16,044
3.4
16,200D
Sapporo Parkku, Sapporo-shi, Hokkaido
interests
Trust
Hotel MyStays Ueno
5-5-6, Higashi Ueno Taito-ku,
beneficiary
D62
5,286
5,151
1.1
5,110
D
East
Tokyo
interests
Trust
Hotel MyStays Midosuji 3-2-10, Honmachi, Chuo-ku,
beneficiary
D63
5,039
4,839
1.0
3,520
B
HonmachiOsaka-shi, Osakainterests

53

Appraisal
Balancevalue at theAcquisition
sheet
Investment
Propertyend of the
Location
Legal form
price
carrying percentage
Appraiser
numberName of property
period(Note 2)of asset (JPY million) value(%)(Note 7)(Note 1)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)Trust
5-1 Nishi 4-chome, Kita 8-jo, KitaHotel MyStays Sapporo
beneficiary
D64ku, Sapporo-shi, Hokkaido, and15,543
15,2893.1
15,000D
Aspeninterests
seven other lotsTrust554-2 Nishimaji Okawa, Ishigakibeneficiary
D65 Art Hotel Ishigakijima
9,731
9,515
2.0
9,310
B
shi, Okinawa, and four other lots
interests
Trust2654 Arakura Deguchi,
Hotel MyStays Fuji
D66
Fujiyoshida-shi, Yamanashi, and beneficiary
9,405
8,883
1.9
9,760
B
Onsen Resort
interests
15 other lots
Trust
1-4-20 Ironai, Otaru-shi,
beneficiary
D67 Hotel Sonia Otaru
5,930
5,637
1.2
5,700
D
Hokkaido
interests
Trust
Hotel MyStays
10-17 Konohana-machi,
beneficiary
D68
5,682
5,613
1.1
5,410
D
Kanazawa Castle
Kanazawa-shi, Ishikawa
interests
Trust
1-1 Sasaguchi, Chuo-ku, Niigatabeneficiary
D69 Art Hotel Niigata Station
5,524
5,352
1.1
5,350
D
shi, Niigata
interests
Trust
Hotel MyStays Nagoya 3-8-21 Nishiki, Naka-ku, Nagoyabeneficiary
D70
5,197
5,091
1.1
5,000
C
Nishikishi, Aichi
interests
Trust
1-4-16 Ironai, Otaru-shi,
beneficiary
D71 Hotel Nord Otaru
4,296
4,167
0.9
4,050
D
Hokkaido
interests
Trust
Hotel MyStays
2-7 Yamanokuchi-cho,beneficiary
D72
3,445
3,358
0.7
3,400
E
Kagoshima Tenmonkan Kagoshima-shi, Kagoshima
interests
Trust
6-29-2 7-jo-dori, Asahikawa-shi,
beneficiary
D73 Art Hotel Asahikawa
3,197
2,948
0.6
3,090
D
Hokkaido
interests
Trust
Hotel MyStays
1-10-10 Otemachi, Matsuyamabeneficiary
D74
3,098
2,887
0.6
3,160
E
Matsuyamashi, Ehime
interests
Trust
1-6 Nishi 5-Chome, Minami 7-jo,
Hotel MyStays Sapporo
D75
Chuo-ku, Sapporo-shi, Hokkaido, beneficiary
3,059
2,996
0.6
2,920
C
Susukino
interests
and one other lot
Trust
Hotel MyStays Sapporo 1-20 Nishi 1-chome, Minami 14-jo,beneficiary
D76
2,118
2,037
0.4
1,970
C
Nakajima Park
Chuo-ku, Sapporo-shi, Hokkaido
interests
Trust
Hotel MyStays Sapporo 4-3 Nishi 1-chome, Minami 11-jo,beneficiary
D77
1,584
1,526
0.3
1,520
D
Nakajima Park Annex
Chuo-ku, Sapporo-shi, Hokkaido
interests
Trust
2-72-2 Hanasaki-cho, Naka-ku,
beneficiary
D78 Flexstay Inn Sakuragicho Yokohama-shi, Kanagawa, and
1,425
1,399
0.3
1,420
E
interests
four other lot
Trust
MyCUBE by MYSTAYS
beneficiary
D79
2-6-7 Kuramae, Taito-ku, Tokyo
1,287
1,267
0.3
1,240
E
Asakusa Kuramaeinterests
Hotel MyStays
Trust
1-20 Gofuku-machi, Kagoshimabeneficiary
D80 Kagoshima Tenmonkan
1,168
1,153
0.2
1,190
E
shi, Kagoshima
Annex
interests
Trust
11 Minami 5-chome, Nishi 3-jo,beneficiary
D81 Hotel MyStays Nayoro Nayoro-shi, Hokkaido, and one
957
894
0.2
926
C
interests
other lot
Trust
Hotel MyStays Premier 40 Yokomine Oyama, Narita-shi,
beneficiary
D82
10,593
10,167
2.1
10,100D
NaritaChibainterests
Trust
D83 Art Hotel Morioka
3-3-18 Odori, Morioka-shi, Iwate beneficiary
5,643
5,407
1.1
5,370
C
interests

54

Property
number(Note 1)Name of property

Location(Note 2)

D200

Westin Grand Cayman
Seven Mile Beach
Resort & SPA

30620 Seven Mile Beach Road,
Grand Cayman, Cayman Islands

D201

Sunshine Suites Resort

1465 Esterley Tibbetts Highway,
Grand Cayman, Cayman Islands

Appraisal
Balancevalue at theAcquisition
sheet
Investment
end of theLegal form
price
carrying percentage
Appraiser
periodof asset (JPY million) value(%)(Note 7)(JPY
(Note 3)(JPY
(Note 4)
million)million)(Note 5)36,46130,061
The
(USD
(USD
317,000
Leasehold28,832
6.1
F272,171
thousand)(Note 11)thousand)(Note 12)
6,671
The
5,842
(USD
58,000
Leasehold (USD 52,898
5,476
1.2
F
thousand)(Note 11)thousand)(Note 12)Subtotal (85 properties)

432,763

412,46187.5

471,512-

Total (133 properties)

476,920451,804

96.4

523,699-

17,845

17,856

3.6- (Note 5)

Subtotal of preferred equity interest issued by special purpose company(1 property)

17,845

17,856

3.6--

Total (134 properties)

494,766

469,660

100.0

-

-

Sheraton Grande Tokyo
Bay Hotel (preferred
equity interest)-

Preferredequityinterest
issued by
specialpurposecompany(Note 13)-

(Note 1)

“Property number” indicates the use categorization of properties owned by INV, with “A” standing for residence, “B” standingfor office and commercial facility, “C” standing for parking lots and “D” standing for hotel, and the number assigned for each
property. The number following “A”, “B”, “C” and “D” is assigned based on how early the acquisition was made, except for
acquisitions made at the same time a lower number is assigned to the property with a greater acquisition price.

(Note 2)

“Location” is, in principle, based on the indicated address (jyukyohyoji), except that if the jyukyohyoji system has not been
implemented for such property, the location is based on the land number (chiban).

(Note 3)

“Acquisition price” is the purchase price indicated in the real estate or trust beneficiary purchase agreement except for Sheraton
Grande Tokyo Bay Hotel (preferred equity interest), Westin Grand Cayman Seven Mile Beach Resort & SPA and Sunshine Suites
Resort. For Sheraton Grande Tokyo Bay Hotel (preferred equity interest), “Acquisition price” indicates the amount invested by
INV for the preferred equity interest, excluding investment in the specified equity interests in the Kingdom Tokutei Mokuteki
Kaisha and the acquisition price of the equity interest held by the employees in a G.K., which is a master lease company. For
Westin Grand Cayman Seven Mile Beach Resort & SPA and Sunshine Suites Resort, the book value of the Leasehold of each of the
Cayman Hotels is stated by the Cayman SPC as of May 9, 2019 (Cayman Islands local time; May 10, 2019 in Japan local time),
which is the date when INV succeeded the Leasehold from the Cayman SPC as dividend in kind in line with the agreed terminationof the TK agreement. The amounts in USD are converted into JPY as shown. Such price excludes consumption tax and othertaxes, and has been rounded down to the nearest million yen.

(Note 4)

“Investment percentage” is the ratio of the acquisition price to the aggregate acquisition price of INV’s portfolio, and has beenrounded to the first decimal place.

(Note 5)

“Appraisal value at the end of the period” is the value appraised or determined based on research by the real estate appraiser
as of the end of the fiscal period in accordance with the Articles of Incorporation of INV and the regulations of The Investment
Trust Association, Japan. As to appraisal of Westin Grand Cayman Seven Mile Beach Resort & SPA and Sunshine Suites Resort,the local appraiser verification method (Note 6) is adopted. The appraisal value for Sunshine Suites Resort includes the unused
land adjacent to the hotel. Appraisal is entrusted to those described in (Note 7) below. For Sheraton Grande Tokyo Bay Hotel(preferred equity interest), there is no appraisal value at the end of the period due to it being preferred equity interest. An
appraisal value for the underlying asset as of the closing date of the Reporting Period is as follows.
Name of property

Appraisal value

Sheraton Grande Tokyo Bay Hotel(Note 6)

JPY 98,100 million

Appraiser(Note 7)
D

Under the “local appraiser verification method,” a real estate appraiser licensed in Japan determines appraisal value based on
the understanding and analyses of basic data and information necessary for real estate appraisal, including appraisal methods
employed by local appraisers, and transaction examples and trends in local markets that are used for real estate appraisal, andby verifying the validity of decisions made in appraisal reports and appropriateness of appraisal value prepared by local
appraisers. INV appoints CBRE, Inc., a professional appraiser licensed and certified in the Cayman Islands, as a local appraiser
to engage in appraisal of the Underlying Asset and prepare a local appraisal report. INV then engages CBRE K.K., a company
appointed as a real estate appraiser in Japan, to verify the local appraisal report and then obtains a report on verification ofappraisal performed by local appraiser.

55

(Note 7) “Appraiser” is shown in code in the table above.

The code used to represent the appraisers is as follows:

Appraiser
A: Assets Research and Development Inc.
B: Japan Real Estate Institute
C: JLL Morii Valuation & Advisory K.K.
D: The Tanizawa Sogo Appraisal Co., Ltd.
E: Daiwa Real Estate Appraisal Co., Ltd.
F: CBRE K.K.
As to appraisal of Westin Grand Cayman Seven Mile Beach Resort & SPA and Sunshine Suites Resort, the local appraiser
verification method is adopted and CBRE K.K. has entrusted such appraisal to CBRE, Inc. The appraisal value for Sunshine
Suites Resort includes the acquisition price of the unused land adjacent to the hotel.
(Note 8)

These trust beneficiary interests were integrated into three groups with other trust beneficiary interests when INV procured funds
through debt financing backed by trust assets in July 2011. The grouping of trust beneficiary interests at the end of the Reporting
Period is as follows:
Group 1
Nisshin Palacestage Daitabashi, Growth Maison Shin-Yokohama, Belle Face Ueno-Okachimachi, Growth Maison Yoga,
Shibuya-Honmachi Mansion, and Foros Nakamurabashi
Group 2
College Square Machida, Belair Meguro, and Wacore Tsunashima I
Group 3
Suncrest Shakujii-Koen, Grand Rire Kameido, Acseeds Tower Kawaguchi-Namiki, Growth Maison Kaijin, and College Square
Machiya(Note 9)The trust beneficiary interests of Revest Honjin, Revest Matsubara, Alba Noritake Shinmachi, Revest Meieki Minami, Luna Court
Edobori, and Little River Honmachibashi were sold on January 12, 2022.

(Note 10) Appraisal value at the end of the period indicates appraisal value calculated deeming the owned portion and the floor expansion
portion as one.
(Note 11) The leasehold interests are the rights equivalent to long-term real estate leasehold rights for buildings and land under the laws of
the Cayman Islands (Term: 99 years; annual lease payment: USD 1 or KYD 1). INV implemented an investment structure change
regarding “Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort” on May 9, 2019 (Cayman Islands
local time), a change from making investments based on the TK agreement to directly owning the movable assets such as leasehold
and FF&E of the Cayman Hotels (the Leasehold, etc.), which were the underlying assets of the TK.
(Note 12) Appraisal value at the end of the period is converted into JPY using the exchange rate of USD 1 = JPY 115.02, which is the exchange
rate on the closing date of the Reporting Period (December 31, 2021).
(Note 13) Preferred equity interest issued by special purpose company refers to 178,458 units of preferred equity interest issued by Kingdom
Special Purpose Company (equivalent to 49.0% of preferred equity interest issued and outstanding after the issuance of the said
preferred equity interest), with the Sheraton Grande Tokyo Bay Hotel as an underlying asset, and is recorded as one property.

56bCapital expenditures for assets under management(a) Schedule for capital expenditures
The schedule for the principal capital expenditures for property maintenance construction, etc., as of the endof the Reporting Period for the real estate assets is as follows.
Estimated Cost (JPY thousand)Name of Property

Location

Scheduled Time of
Implementation

Purpose

Total

Payment for
Advancethe Reporting
Payments
PeriodD21

APA Hotel
Yokohama-Kannai

Air-conditioner's
Yokohama-shi,
From January 2022
outdoor units
To June 2022
Kanagawa
work

125,000--

D48

Takamatsu Tokyu
REI Hotel

Takamatsu-shi, Water tank
Kagawarenovation work

From January 2022
To June 2022

69,950--D44

Hotel Epinard
Nasu

Nasu-gun,Tochigi

From January 2022
To June 2022

50,000--D73

Art Hotel
Asahikawa

Groundwater
Asahikawa-shi,
From January 2022
purification facility
Hokkaido
To June 2022
renovation work

36,500--A45

WacoreTsunashima I

Yokohama-shi, Exterior wall
Kanagawa
renovation work

32,630--

Restaurantrenovation work

From January 2022
To June 2022(b) Capital expenditures for the Reporting Period
The principal construction work constituting capital expenditures for the real estate assets for the Reporting
Period is as follows. Capital expenditures for the Reporting Period totaled JPY 486,798 thousand, andtogether with JPY 22,561 thousand in repair costs included in this fiscal period’s expenses, construction
work totaling JPY 509,360 thousand was implemented.
Name of property

Location

PurposeTime ofimplementation

Payment(JPY thousand)Westin Grand
Cayman Seven
D200
Mile Beach Resort
& SPA

Grand
Cayman,CaymanIslands

Renovation work

From July 2021
To December 2021

19,893

A30 Emerald House

Itabashi-ku,
TokyoIntercom renovation work

From July 2021
To December 2021

10,120D73

Art Hotel
Asahikawa

Asahikawa-shi, Emergency announcement
Hokkaido
facility renovation work

From July 2021
To December 2021

9,727

D06

Hotel MyStays
Premier Dojima

Osaka-shi,
Osaka

Air conditioning facility
renovation work

From July 2021
To December 2021

8,500

D44

Hotel Epinard
Nasu

Nasu-gun,Tochigi

Firefighting facility
renovation work

From July 2021
To December 2021

7,800

Other construction

430,758
Total(3)

486,798

Tenant Summary

a Summary of lease conditions by property
Disclosure is omitted because the information is described in the presentation material, “December 2021
Fiscal Period Results (July 1, 2021 to December 31, 2021)” separately announced on February 24, 2022.
b Occupancy trend
Disclosure is omitted because the information is described in the presentation material, “December 2021
Fiscal Period Results (July 1, 2021 to December 31, 2021)” separately announced on February 24, 2022.

57