This is an English language summary of the original Japanese Asset Management Report available on our
Website. However, no assurance or warranties are given with respect to the accuracy or completeness of
this English language summary. The Japanese original shall prevail in the case of any discrepancies
between this summary and the Japanese original.

Invincible Investment Corporation
Asset Management Report
Fiscal Period ended December 31, 2023 (July 1, 2023 to December 31, 2023)
Content
Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President &CEO of Consonant Investment Management Co., Ltd.
Summary of Financial Results
Overview of the Asset Acquired
ESG Initiatives
Unitholder Benefit Program
I.
II.
III.
IV.
V.
VI.
VII.

Asset Management Report
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Notes to Financial Statements
Statement of Cash Distribution
Statement of Cash Flows (Reference Information)

Domestic Portfolio Map (As of February 29, 2024)
Financial Conditions

Overview of Unitholders/Investment Units
Information for Unitholders-1-Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President& CEO of Consonant Investment Management Co., Ltd.
We would like to express our deepest sympathies to all those affected by the 2024 Noto Peninsula Earthquake.
We pray for the safety of everyone in the affected areas and for the speedy restoration of peace and tranquility
in the lives of those affected.
We would like to take this opportunity to express our sincere gratitude to all unitholders of Invincible
Investment Corporation ("INV") for your continued support.
We hereby provide you with a report on INV's asset management and financial results for the 41st fiscal
period (from July 1, 2023 to December 31, 2023) (the "Reporting Period").
In the Reporting Period, the performance of the hotels showed significant recovery along with the recoveryof the inbound demand driven by the depreciation of Japanese yen, coupled with robust domestic leisuredemand, as the more than three year impact from the Covid-19 pandemic has ended. ADR continued tosignificantly exceed the 2019 level at INV’s hotels in Japan and Cayman Islands, as the hotel operator focused
its strategy on ADR. The increase in ADR helped to absorb cost increases including labor costs and utilities
charges. As such, GOP increased compared to the same period in 2019 despite a slightly lower occupancy
rate at each hotel owned by INV compared to before the Covid-19 pandemic.
Under such circumstances, INV implemented a global public offering for the first time in four years to acquire
six domestic hotels including Fusaki Beach Resort Hotel & Villas. As a result, INV’s hotel portfolio further
expanded assets under management and maintains the largest hotel portfolio among J-REITs, with a hotel
portfolio exceeding JPY 500 billion. The recent acquisition further enhanced the portfolio in terms of thequality of its properties and diversification of areas and hotel types.

On the financing side we issued our first green bond. INV’s financial base has been further stabilized
by the lengthening of borrowing periods, diversification of maturity dates, and a significant
improvement in the ratio of fixed interest rate debt.
Furthermore, INV continued its efforts to promote sustainability initiatives and obtained three stars in
the 2023 GRESB Real Estate Assessment.
Overall, INV announced a distribution per unit of JPY 1,640 by recording operating revenues of JPY 18,819
million, operating income of JPY 12,588 million, and net income of JPY 11,032 million in the Reporting
Period. The distribution per unit is still below the December 2019 fiscal period (JPY 1,725) but has recovered
to a level close to that period.
In February 2024, after the end of the Reporting Period, we issued our first retail bond which enhanced thediversification of our financing methods. In the coming periods, we aim to proactively take initiatives suchas the further acquisition of properties and value-add work to improve revenues of properties already acquired.
Now that we overcame the Covid-19 pandemic, we will continue to work diligently to further enhance thevalue of INV in all aspects, including internal growth, external growth, financing strategy, and sustainability
in order to meet our unitholders’ expectations.
-2-Your continued support is highly appreciated.

Naoki Fukuda
Executive Director, Invincible Investment Corporation
President & CEO, Consonant Investment Management Co., Ltd.

-3-

Summary of Financial Results
Period from
July 1, 2021 to
December 31, 2021

Period fromJanuary 1, 2022 toJune 30, 2022

Period from
July 1, 2022 to
December 31, 2022

Period fromJanuary 1, 2023 toJune 30, 2023

Period from
July 1, 2023 to
December 31, 2023

Operating
Revenues(JPY million)

8,406

7,680

11,92915,914

18,819Ordinary Income(JPY million)

1,014

1,015

5,075

8,914

11,033Net Income(JPY million)

1,014

1,015

5,075

8,913

11,032

Net Assets(JPY million)

246,130

246,211250,321254,024

290,305

Total Assets(JPY million)

494,819

490,118494,237

496,819563,393

Net Assets
per Unit (JPY)

40,37040,38341,05841,66543,090Net Assets/Total
Assets (%)

49.7

50.2

50.6

51.1

51.5

Distribution
per Unit (JPY)

166

166

832

1,464

1,640

Number of Units
Issued (Unit)

6,096,840

6,096,840

6,096,840

6,096,840

6,737,121

Distribution per unit for the 41st fiscal period(the fiscal period ended December 2023)

JPY 1,640(Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions andestimates as of February 29, 2024. These assumptions and estimates are unavoidably uncertain, and could be affected by various
risks and factors beyond INV’s control. Thus, no guarantee can be made regarding the realization of such future forecasts and targets,and actual results may vary significantly.

-4-

ESG Initiatives
INV recognizes 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 andcontributing to global environmental conservation, and regard improvement of sustainability as an importantmanagement issue and implement initiatives to contribute to make our society sustainable.
Initiatives for the Environment
2023 GRESB Real Estate Assessment1
In the 2023 GRESB Real Estate Assessment, INV received
a “3-Star” GRESB Rating, which is based on overall
GRESB scores and its quintile position among participants,
and represents a rating upgrade from to the “2-Star”
GRESB Rating received in 2022. INV was also awarded
a “Green Star” designation by achieving high performancein both the “Management Component” that evaluates
policies and organizational structure for ESG(Environmental, Social, and Governance) promotion, andthe “Performance Component” that assesses environmental
performance and tenant engagement of properties owned.
Further, INV was highly evaluated for its ESG information
disclosure efforts and received an “A Level” the highest
level for GRESB Public Disclosure, which assesses thebreadth of ESG disclosure. We will consider preparations
for acquiring evaluation by other external organizations,such as green building certification, to strengthen our ESG
initiatives

GRESB Rating“3-Star”
GRESB Public
Disclosure“A Level”, thehighest level(Note 1) GRESB is an annual benchmarking program to evaluate ESG considerations of property companies and real estate funds. The
GRESB Real Estate Assessment is distinguished by its comprehensive evaluation of initiatives for sustainability of property
companies, REITs and real estate funds, not of individual properties. GRESB rating is a relative evaluation based oncomprehensive scores and the highest being "5-stars".

Green Finance◼ Green Finance Framework
INV has established the Green Finance
Framework in August 2023 to procure funds
necessary to realize a sustainable environmentand society through Green Bonds and Green
Loans. It acquired “Green1 (F)”, the highest
rating on JCR’s Green Finance Framework
Evaluation◼ Total Amount of Green Finance
INV issued green bonds (total JPY 3.5 billion) for the first time in September and December 2023 based on
the Green Finance Framework and implemented first refinancing with green loan in January 2024.
Name of Investment Corporation Bonds/ Lenders
9th series unsecured corporate bonds (Green bond)10th series unsecured corporate bonds (Green bond)Mizuho Bank, MUFG Bank., Sumitomo Mitsui Banking Corporation,
Sumitomo Mitsui Trust Bank, Development Bank of Japan, San ju San
Bank, The Nomura Trust and Banking (Green loan)-5-Issue Date/
Borrowing Date
Sep 21, 2023
Dec 14, 2023

5 years
5 years

Amount(JPY million)
1,700
1,800

Jan 16, 2024

6 years

8,970

Term

External Certifications＜Hotels that newly acquired the certification＞◼ BELS1 Certification (January 2024)
Newly acquired BELS (Building-Housing
Energy-efficiency
Labeling
System)Certification for four of INV’s hotels due tohigh energy conservation performance. Hotel ★★★★★
MyStays Haneda and Hotel MyStays
Matsuyama were rated five stars “★★★★
★ ”, and Hotel MyStays Kanda and Hotel
MyStays Aomori Station were rated four stars“★★★★”, bringing the number of hotels
with BELS Certification to 19.

Hotel MyStays Haneda

Hotel MyStays Matsuyama★★★★
(Note 1 ） BELS is a third-party
certification system that evaluatesand certifies the energy-saving
Hotel MyStays Kanda
Hotel MyStays Aomori
performance of a building that theStationoperators are required to makeefforts to display under the Act on Improving Energy Consumption Performance for Architectural Structures.
Houses and buildings are evaluated based on the value of BEI (Building Energy Index) derived from the primaryenergy consumption based on the government-designated energy consumption performance standard ofarchitectural structures.

＜Hotels that already acquired the certification in the previous periods>★★★★★ Hotel MyStays Premier Akasaka, Hotel MyStays Fukuoka Tenjin, Hotel MyStays Yokohama Kannai, Hotel MyStays Oita★★★★

Hotel MyStays Premier Kanazawa, Hotel MyStays Sapporo Station, Hotel MyStays Fuji Onsen Resort★★★

MyStays Shin-Urayasu Conference Center, Hotel MyStays Sakaisuji-Honmachi, Hotel Epinard Nasu★★

Hotel MyStays Kyoto-Shijo, Hotel MyStays Fukuoka-Tenjin-Minami, Hotel MyStays Hakodate-Goryokaku, Hotel MyStays
Hamamatsucho, Hotel MyStays Midosuji Honmachi

E

Initiatives for Environment◼ Energy-saving construction using Ministry of the Environment subsidy (SHIFT Project)
Hotel Nord Otaru and Hotel MyStays Sapporo Aspen received a subsidy of JPY 25 million in total (about
one-third of the total investment) from the Ministry of the Environment’s “Project for the Promotion of
Leading Decarbonization Initiatives in Factories and Business Sites (SHIFT Project*)” to replace a gas-fired
absorption chiller/heater that was due for renewal with an air-cooled heat pump chiller. The hotels aim to
reduce CO2 emissions and energy costs through reduction of fuel consumption by improvement of energy
efficiency and reduction of energy power consumption by removing cooling water pumps and cooling
towers.
* Projects that support initiatives that serve as role models for decarbonization (setting reduction targets, formulating reduction plans, andimplementing facility upgrades, electrification, fuel conversion, and operational improvements) at factories and business sites to achieve
Japan's 2030 GHG reduction targets and achieve carbon neutrality in 2050.

-6-

CO2 Reduction Plan

Status in 2023
Entire business site
Main systems

2024 Target

1,520（t-CO2/year）

1,213

20.1% reduction（t-CO2/year）

52.1% reduction（t-CO2/year）

281

587
（t-CO2/year）

空冷ヒートポン After installation of air-cooled heat pump chiller

Before installation of air-cooled heat pump chiller
Hotel Nord Otaru

Hotel MyStays Sapporo Aspen

ホテルノルド小樽

S

Initiatives for Society◼ Promotion of diversity in human resources (Initiative by INV’s main hotel operator)
・Opening of “Narita Hospitality Academy”
Opened “Narita Hospitality Academy” on June 1, 2023, in Narita city, Chiba prefecture, which
is a post-arrival training facility specializing in hospitality internships for foreign technicalinterns. The training contributes to the development of hospitality personnel by providing ageneral Japanese language program as well as the spirit and culture of Japanese hospitality, inthe aim to make them acquire the knowledge and specialized skills as hotel staff. In 2023, total
60 interns from Vietnam and Philippines participated in the training. In 2024, interns from
Nepal, Vietnam and Myanmar are expected to complete the training and start to work at MHM
managed hotels.

◼ Collaboration with local community
・Hotel MyStays Matsuyama
Organized an event for two days where students from Kawahara
college, a college in Matsuyama city, work as restaurant staff at“Setouchi Bar La Terrazza” located on the 1st floor. The college’s
desire to nurture the next generation and the hotel’s wish forstudents to make the most of their academic experience as part ofthe internship program in harmony with each other.

◼ Energy-saving construction using Ministry of the Environment subsidy (SHIFT Project)
・Hotel MyStays Gotanda Station:
Started to serve original course menu from November 2023 at “Trattoria VICINO”, a
restaurant located on the 2nd floor. The menu uses vegetables cultivated around Tokyo
called “Edo-Tokyo vegetables” and fresh fish from Tokyo bay to promote “local production
for local consumption” which contributes to reduce environment burden created fromlogistics etc. and to revitalize the local community.

-7-

Unitholder Benefit Program
INV has introduced the unitholder benefit program to improve the satisfaction of its unitholders and expand
the unitholder base. Eligible unitholders can stay at Sheraton Grande Tokyo Bay Hotel and all MyStays
group hotels at special discount rates. INV decided to expand the available period by two months (from six
months to eight months) for stay from the December 2022 Fiscal Period and onwards.
*Detailed information is sent to eligible unitholders along with this report.

Overview of the Unitholder Benefit Program(Note 1)◼ Sheraton Grande Tokyo Bay Hotel
Applicable Hotels◼ All hotels managed by MyStays (Note 2)
All Unitholders whose names are recorded on Invincible’s Unitholders’ Registry
as of the relevant record dates:
Eligible Unitholders *INV decided to remove the eligibility requirement of "holding 10 or moreunits" to enable all INV unitholders to utilize the Unitholder Benefit
Program from the June 2020 Fiscal Period and onwards
The last day of every fiscal period (June 30 and December 31 of each year)
Record Date
Program Details
Hotel Reservation
Available Period(Note 3)

Stay with unitholder special discount rates at the above applicable hotels◼Sheraton Grande Tokyo Bay Hotel
Reservation via phone or Email◼ All MyStays hotels and Kamenoi Hotels
Reservation via official website or phone
From April 1 to November 30 (eligible unitholders as of December 31)
From October 1 to May 31 (eligible unitholders as of June 30)

Sheraton Grande Tokyo Bay Hotel

Hotel Epinard Nasu

Fusaki Beach Resort Hotel & Villas(Note 1)
(Note 2)
(Note 3)

Hotel MyStays Premier Akasaka

The details of the unitholder benefit program described above are as planned by Invincible as of February 29, 2024, and the program may be changed orabolished even after it is has been introduced.
Refers to all hotels under MyStays brand managed by MHM, and hotels shown on the MyStays Hotel Group’s official website (https://www.mystays.com/enus/) will be applicable.
Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, youactually need to lodge during the availability period.

-8-

I.

Asset Management Report

Overview of Asset Management
1

Trends in Investment Corporation’s Operating Results
By Period

Reporting period

37th

38th

39th

40th

41st

fiscal period

fiscal period

fiscal period

fiscal period

fiscal period

Jul. 1, 2021 toJan. 1, 2022 toJul. 1, 2022 toJan. 1, 2023 toJul. 1, 2023 to

Dec. 31, 2021

Jun. 30, 2022

Dec. 31, 2022

Jun. 30, 2023

Dec. 31, 2023

Operating Results

Operating revenue(JPY thousand)

8,406,334

7,680,227

11,929,599

15,914,981

18,819,119(Rental revenue – real estate)(JPY thousand)(5,837,847)(5,198,229)(10,182,751)(12,000,955)(16,696,076)

Operating expenses(JPY thousand)

6,113,994

5,565,846

5,672,588

5,558,241

6,230,207(Property-related expenses)(JPY thousand)(4,777,042)(4,498,723)(4,606,538)(4,488,341)(5,096,717)

Operating income (loss)(JPY thousand)

2,292,339

2,114,380

6,257,011

10,356,739

12,588,912

Ordinary income (loss)(JPY thousand)

1,014,799

1,015,760

5,075,941

8,914,347

11,033,176

Net income (loss)
Total assets(change from last period)

AssetsInterest-bearing debt

(JPY thousand)

1,014,194

1,015,155

5,075,336

8,913,742

11,032,571(a) (JPY thousand)

494,819,805

490,118,752

494,237,781

496,819,930

563,393,061(%)(-0.6)(-1.0)

(0.8)

(0.5)

(13.4)(JPY thousand)

244,945,000

241,372,000

240,797,000

239,190,000

269,100,000(b) (JPY thousand)

246,130,354

246,211,129

250,321,091

254,024,091

290,305,021

(%)

(0.4)

(0.0)

(1.7)

(1.5)

(14.3)

Unitholders’ capital(JPY thousand)

235,701,512

235,701,512

235,701,512

235,701,512

270,101,249

Total distributions(c) (JPY thousand)

1,012,075

1,012,075

5,072,570

8,925,773

11,048,878(Note 1) (%)

99.8

99.7

99.9

100.1

100.1

(d) (Units)

6,096,840

6,096,840

6,096,840

6,096,840

6,737,121(b) / (d) (Note 2) (JPY)

40,37040,38341,05841,66543,090Net assets(change from last period)

Dividend
StatusDividend payout ratio
Number of investment units

Information per Unit

issued and outstanding
Net assets per unit
Distributions per unit(c) / (d) (JPY)

166

166

832

1,464

1,640

(Distributions of earnings per unit)

(JPY)

(166)

(166)

(832)

(1,464)(1,640)(Distributions in excess of retained

(JPY)

(-)

(-)

(-)

(-)

(-)

earnings per unit)
Return on assets(annualized)

Financial Measures

Return on equity(annualized)
Capital ratio(change from last period)
NOI(Net Operating Income)(Note 3) (%)(Note 3) (%)(b) / (a) (Note 3) (%)(%)(Note 3)
(JPY thousand)

0.2

0.2

1.0

1.8

2.1

(0.4)

(0.4)

(2.0)

(3.6)

(4.1)

0.4

0.4

2.0

3.5

4.1

(0.8)

(0.8)

(4.1)

(7.1)

(8.0)

49.7
(0.5)

50.2
(0.5)

50.6
(0.4)

51.1
(0.5)

(0.4)

4,201,550

4,936,210

10,509,695

14,523,824

17,205,671

51.5(Note 1) Dividend payout ratio is calculated in accordance with the following formula and rounded to one decimal
place:
Dividend payout ratio = Distribution amount (Excluding distributions in excess of retained earnings) / Net
income × 100(Note 2) Net assets per unit are rounded to the nearest unit.
(Note 3) Figures above are calculated as below, and ratios are rounded to one decimal place. Figures annualized-9-

according to the number of days are also shown.
Return on assets = Ordinary income for relevant period / ((Total assets at start of relevant period + Total
assets at end of relevant period) / 2) x 100.
Return on equity = Net income for relevant period / ((Net assets at start of relevant period + Net assets at
end of relevant period) / 2) x 100.
Capital ratio = Net assets at end of relevant period / Total assets at end of relevant period x 100.
NOI = Rental revenue – Property-related expenses + Management contract revenue - Management contract
expenses + Dividends of preferred equity interest + Depreciation expense for relevant period
The dividends of preferred equity interest has been included in the formula calculating NOI from the 41st
fiscal period. This change makes no difference since no dividends of preferred equity interest wasrecorded from the 37th to the 41st fiscal period.

2

Overview of Asset Management for the Fiscal Period Ended June 2023(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 listedon the Real 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” andtogether with Calliope and other affiliates of FIG, collectively the “Fortress Group”) was the main allottee,
and the sponsor changed to the Fortress Group.
Ever since the commencement of sponsorship from the Fortress Group (Note 1), 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 ofexisting bank borrowings, thereby creating a financial base for external growth. With this platform as a base,in June 2014, Consonant Investment Management Co., Ltd., the asset manager to which INV entrusts the
management of its assets (“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 rise going forward, and has expanded its portfolio.
In the Fiscal Period ended December 31, 2023 (the “Reporting Period”), INV implemented a global offering of
new investment units for the first time in four years and acquired six domestic hotels including the flagship“Fusaki Beach Resort Hotel & Villas”, or the largest property in INV’s portfolio. INV’s portfolio at the endof the Reporting Period comprised of 134 properties (92 hotels (Note 2) (Note 3), 41 residential properties andone retail facility) with a total acquisition price of JPY 548,646 million (Note 4). Furthermore, INV’s hotel
portfolio has the largest asset size (Note 5) of JPY 507,861 million (92 properties, 16,624 rooms) among all JREITs (real estate investment corporations which are listed on the Tokyo Stock Exchange Real Estate
Investment Trust Securities Market, hereinafter the same shall apply) hotel portfolios including Hotel J-REITs(Note 6) . ’(Note 1) Calliope 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 Corp. (“SoftBank Group”) on March 29, 2018, but the
SoftBank Group transferred its issued shares of CIM to Fortress CIM Holdings L.P. on May 23, 2023.
As of the date of this document, SoftBank Group indirectly owns 100% of issued shares of CIM
through Fortress CIM Holdings L.P. The SoftBank Group announced that it has entered into a
definitive agreement to transfer its interest in the indirect parent company of Fortress CIM Holdings
L.P. to Mubadala Capital and others during the first quarter of 2024.
(Note 2) 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, “TMK”) refers to 178,458 units of thepreferred equity interest issued by Kingdom Special Purpose Company (equivalent to 49.0% of theoutstanding preferred equity interest), which owns the trust beneficiary interest of the Sheraton- 10 -

(Note 3)(Note 4)(Note 5)(Note 6)Grande Tokyo Bay Hotel as an underlying asset. The property is classified as a hotel, based on theuse of Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred equity interest, andINV’s investment amount of the preferred equity interest is used as the acquisition price of thepreferred equity interest, unless otherwise stated. The “underlying asset” refers to the real estate or
the real estate related assets owned by a operator of an anonymous association (tokumei kumiai, “TK”)
interest or a TMK relating to the preferred equity interest which INV owns, thus the real estate or thereal estate related assets which will be the revenue source of INV. Hereinafter the same shall apply.
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 Westin Grand Cayman Seven Mile
Beach Resort & Spa and Sunshine Suites Resort (collectively, 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 are counted 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 and buildings under the
British Cayman laws) and furniture, fixtures, equipment, ornaments, kitchen instrument, and otherassets required for hotel operations. Hereinafter the same shall apply.
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.
“The largest asset size … among all J-REIT hotel portfolios” refers tothe total acquisition price of 92
hotels owned by INV with the total acquisition price of hotels (including inns and otheraccommodation facilities) owned by listed investment corporations other than INV as of December
31, 2023.
Hotel J-REIT refers to four J-REITs that invest in hotels and hotel related facility defined by The
Association for Real Estate Securitization (ARES) as of December 31, 2023.

(b) Operational Environment and Performance
The portfolio NOI (Note 1) increased by 63.7% or JPY 6,695 million compared to the same period in theprevious year (the December 2022 fiscal period) to JPY 17,205 million. Of which, the hotel portfolio NOI
increased by JPY 6,692 million and the residential and retail portfolio NOI increased by JPY 3 million.
Compared to the December 2019 fiscal period prior to the COVID-19 pandemic, the portfolio NOI increased
by 13.5% or JPY 2,041 million, of which the hotel portfolio NOI increased by JPY 2,830 million and theresidential and retail portfolio NOI decreased by JPY 789 million due to asset sales.
Commentary on hotel and residential performance is as described below.
Domestic hotel portfolio continued to recover from the COVID-19 pandemic. Even with the gradual end of
the "National Travel Discount Campaign" program, the government’s travel subsidy program, there has been
no decline in demand due to a reaction from the elimination of the program. Coupled with the strong
inbound demand with the help of the weak yen, each performance metric of the domestic hotel portfolio
increased significantly over the same period of the previous year's results. While occupancy rates (Note 2)
were slightly below the 2019 levels, ADR (Note 3) and RevPAR (Note4) were above the 2019 levels. The GOP(Note 5) for the Reporting Period of the 75 domestic hotels (Note 6) owned by INV increased by 58.6%
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- 11 -

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 of 82.7%, ADR of JPY 12,649, and RevPAR of JPY
10,462. Compared to the June 2019 fiscal period prior to the COVID-19 pandemic, the GOP increased by
9.0%, the occupancy rate decreased by 5.7pt, ADR increased by 19.2%, and RevPAR increased by 11.5%.
The Cayman Hotels recorded an average occupancy rate of 64.8%, ADR of USD 421, and RevPAR of USD 273
for the Reporting Period and the figures significantly exceeded the same period in the previous year.
Compared to the June 2019 fiscal period prior to the COVID-19 pandemic, the occupancy rate decreased by
7.5pt, ADR increased by 28.6%, and RevPAR increased by 15.3%. Occupancy rate has not returned to 2019
levels as the number of commercial flights between the Cayman Islands and the U.S. have not recovered to2019 levels, but ADR has grown significantly due to high demand and RevPAR has remained above 2019
levels.
Regarding the residential portfolio (Note 7), the occupancy rate (Note 8) of 41 residential properties remained
unchanged from 95.9% at the end of the previous fiscal period to 95.9% at the end of the Reporting Period.
The average occupancy rate (Note 8) decreased by 0.3 points YoY to 96.0%. The NOI (Note 9) for theReporting Period increased by 0.2% YoY.
In the Reporting Period, INV realized a rent increase for 55.9% (based on the number of contracts) of the newresidential lease contracts, and the new rent increased by 1.3% compared to the previous rent across all newleases (Note 10). INV achieved a rent increase for 46.8% (based on the number of contracts) of contract
renewals with an average rent increase of 1.3% compared to the previous rent across all renewal leases, while
maintaining a high contract renewal rate (Note 11) of 75.1%. Combined, new lease and renewal lease rents
were signed at 1.3% higher than the previous leases. The average rent per tsubo per month (Note 12) for theReporting Period increased by 0.5% YoY to JPY 9,214.
The total appraisal value of 133 properties was JPY 629,041 million (one 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 is not available). The portfolio has an
unrealized gain of JPY 133,259 million (Note 13) and an unrealized gain ratio of 26.9% (Note 13). The total
appraisal value of 127 properties which were owned throughout the Reporting Period increased by 1.8% fromJPY 560,963 million at the end of the June 2023 fiscal period to JPY 570,791 million at the end of the Reporting
Period.
Key Performance Indicators of 75 Domestic Hotel Properties (Note 6)
December 2023
Year-on-year change
fiscal periodvs 2H 2019

Occupancy Rate (Note 2)

82.7%+6.8pt-5.7ptADR (JPY) (Note 3)

12,649+24.0%+19.2%

RevPAR (JPY) (Note 4)

10,462+35.1%+11.5%GOP (JPY million) (Note 5)

14,041+58.6%+9.0％

Key Performance Indicators of Cayman Hotels
December 2023
fiscal period

Year-on-year change

vs 2H 2019

Occupancy Rate (Note 2)

64.8%+8.6pt-7.5ptADR (USD) (Note 3)

421

+4.6%

+28.6%

RevPAR (USD) (Note 4)273+20.7%+15.3%

14,600,431+10.8%+10.0%GOP (USD) (Note 5)- 12 -

Key Performance Indicators of 41 Residential Properties (Note 7)
December 2023
fiscal period
Occupancy Rate (Note 8)
Average Rent per Tsubo per Month(JPY) (Note 12)
NOI (JPY million) (Note 9)

Year-on-year change
96.0%-0.3pt

9,214

+0.5%

1,120

+0.2%

(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) “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 3) “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 4) “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 5) “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 from the one
ended June 2020 to the one ended December 2022 includes the amount of employment adjustment
subsidies received by the hotel operators for the respective fiscal periods. In addition, GOP for theSheraton Grande Tokyo Bay Hotel has been multiplied by 49%, or INV’s ownership ratio of thepreferred equity interest. Hereinafter the same shall apply.
(Note 6) Of the domestic 84 hotels held as of the beginning of December 2023 (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 etc. 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. "D48 Takamatsu Tokyu REI Hotel" changed its contract with its major
tenant, Tokyu Hotels Corporation, to fixed-rent with variable rent lease from April 25, 2023.
However, in view of the continuity of disclosed data, this hotel will continue to be excluded.
Hereinafter the same shall apply.
(Note 7) Based on the 41 residential properties owned as of the end of December 2023. Hereinafter the same
shall apply.
(Note 8) “Occupancy Rate” and “Average Occupancy Rate” for the portfolio or the residential properties arecalculated 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 9) For the comparison of NOI for the residential properties, one-off insurance-related revenues andexpenses are excluded. Hereinafter the same shall apply.
(Note 10) 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.

- 13 -

(Note 11) Renewal rate is the number of renewed contracts during the relevant period divided by the numberof contracts due up for renewal during the relevant period.
(Note 12) “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 13) 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.
(c) Overview of Fund Raising
As a result of the measures described below, INV’s interest-bearing debt outstanding balance was JPY 269,100
million and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 47.2% and42.2% respectively, as of the end of the Reporting Period, with an average interest rate (Note 3) of 0.63%.
(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 loans) / 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 loans) / 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 asappraisal value of Sheraton Grande Tokyo Bay Hotel (preferred equity interest). The appraisal
value of the Cayman Hotels is converted into JPY amount via exchange rate of USD 1=JPY 110.45
based on the foreign exchange forward contracts concluded on July 26, 2018 and executed on
September 26, 2018.
(Note 3) The average interest rate (annual rate) is the weighted average based on the outstanding balance ofborrowings and rounded to two decimal places.
(i) Equity Financing
INV implemented a global public offering which closed on July 31, 2023 (the number of new investment units
issued: 609,792; total issue value: JPY 32,761 million) and a third party allotment which closed on August 28,
2023 (the number of new investment units issued: 30,489; total issue value: JPY 1,638 million) in order toprocure part of the funds for the acquisition of six domestic hotels described in “(d) Overview of Acquisitionof Assets”.
(ii) Debt Financing
a. Borrowing of Funds
INV borrowed New Syndicate Loan (009) on July 14, 2023 and July 19, 2023 (total amount borrowed: JPY
59,343 million; interest rate: variable interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five
years, variable interest rate of 3-month JPY TIBOR plus 0.30000% (by the interest swap agreement on
December 22, 2023, it is fixed, in effect, at 0.69100%) for a duration of three years, variable interest rate of 1month JPY TIBOR plus 0.30000% for a duration of three years, variable interest rate of 1-month JPY TIBOR
plus 0.20000% for a duration of one year, variable interest rate of 3-month JPY TIBOR plus 0.50000% for aduration of five years, variable interest rate of 3-month JPY TIBOR plus 0.30000% (by the interest swap
agreement on December 22, 2023, it is fixed, in effect, at 0.69600%) for a duration of three years, variableinterest rate of 1-month JPY TIBOR plus 0.30000% for a duration of three years and variable interest rate of 1month JPY TIBOR plus 0.20000% for a duration of one year), which was arranged by Mizuho Bank, Ltd. inorder to repay New Syndicate Loan (I) in the amount of JPY 9,659 million due on July 14, 2023 and New
Syndicate Loan (003) in the amount of JPY 49,684 million due on July 19, 2023.

- 14 -

INV borrowed New Syndicate Loan (010) on August 1, 2023 (total amount borrowed: JPY 29,856 million;interest rate: variable interest rate of 3-month JPY TIBOR plus 0.50000% (by the interest swap agreement on
December 22, 2023, it is fixed, in effect, at 1.06900%) for a duration of five years, variable interest rate of 3month JPY TIBOR plus 0.30000% (by the interest swap agreement on December 22, 2023, it is fixed, in effect,
at 0.69100%) for a duration of three years and variable interest rate of 1-month JPY TIBOR plus 0.20000% fora duration of one year), which was arranged by Mizuho Bank, Ltd. in order to pay a portion of the acquisition
price and related expenses for the acquisition of the six domestic hotels described in “(d) Overview ofAcquisition of Assets” with the equity financing described in the said (i).
Moreover, INV borrowed Term Loan (016) on September 14, 2023 (total amount borrowed: JPY 3,000 million;interest rate: variable interest rate of 3-month JPY TIBOR plus 0.40000% (by the interest swap agreement on
December 22, 2023, it is fixed, in effect, at 0.87900%) for a duration of four years), which was arranged by
Sumitomo Mitsui Banking Corporation in order to repay Term Loan (006) in the amount of JPY 3,000 million
due on September 14, 2023.
Furthermore, INV borrowed New Syndicate Loan (011) on September 26, 2023 and October 13, 2023 (total
amount borrowed: JPY 43,165 million; interest rate: variable interest rate of 3-month JPY TIBOR plus 0.50000%
for a duration of five years variable interest rate of 3-month JPY TIBOR plus 0.40000% (by the interest swap
agreement on December 22, 2023, it is fixed, in effect, at 0.89400%) for a duration of four years, variable interest
rate of 3-month JPY TIBOR plus 0.30000% (by the interest swap agreement on December 22, 2023, it is fixed,
in effect, at 0.69100%) for a duration of three years, variable interest rate of 1-month JPY TIBOR plus 0.20000%
for a duration of one year, variable interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five
years and variable interest rate of 3-month JPY TIBOR plus 0.40000% (by the interest swap agreement on
December 22, 2023, it is fixed, in effect, at 0.87900%) for a duration of four years), which was arranged by
Mizuho Bank, Ltd. and Term Loan (017) on September 26, 2023 (total amount borrowed: JPY 1,900 million;interest rate: variable interest rate of 3-month JPY TIBOR plus 0.50000% (by the interest swap agreement on
December 22, 2023, it is fixed, in effect, at 1.05400%) for a duration of five years), which was arranged by The
Tokyo Star Bank, Limited in order to repay New Syndicate Loan (J) in the amount of JPY 13,119 million, New
Syndicate Loan (004) in the amount of JPY 28,571 million and Term Loan (007) in the amount of JPY 1,256
million due on September 26, 2023 and New Syndicate Loan (H) in the amount of JPY 3,565 million due on
October 13, 2023.
In addition, INV borrowed Term Loan (018) on November 29, 2023 (total amount borrowed: JPY 4,321 million;interest rate: variable interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years), which wasarranged by Mizuho Bank, Ltd. in order to repay Term Loan (009) in the amount of JPY 4,321 million due on
November 29, 2023.
Additionally, a portion of INV’s existing loans (New Syndicate Loan (007)) from Sumitomo Mitsui Trust Bank,
Limited of JPY 1,746 million was transferred to The Chiba Bank, Ltd. in the amount of JPY 981 million on
September 29, 2023.

- 15 -

b. Issuance of Investment Corporation Bonds
INV issued investment corporation bonds as follows for the purpose of raising a portion of funds for
repayment of existing borrowings while at the same time lengthening the average maturity period of its debt
and further diversifying repayment dates for interest-bearing debt.
Bond Series

Issue Date

Issue
Interest Rate Redemption
AmountDate(JPY million) (annual rate)

Ninth Series Unsecured
Investment Corporation Bonds
September(with pari passu conditions among
21, 2023
specified corporate bonds)(green bonds)
Tenth Series Unsecured Investment
Corporation Bonds (with pari
Decemberpassu conditions among specified
14, 2023
corporate bonds)(green bonds)

1,700

1,800

Abstract

1.200%

September
21, 2028

Unsecured /Unguaranteed
Rating: A(JCR)

1.297%

December
14, 2028

Unsecured /Unguaranteed
Rating: A(JCR)(d) Overview of Acquisition of Assets
CIM decided on the acquisition of trust beneficiary interests in six domestic hotels as follows on July 19, 2023,
and acquisition of the assets was closed on August 1, 2023.
Acquisition
Price(JPY million)(Note 1)

Appraisal
Value(JPY million)(Note 2)

Fusaki Beach Resort Hotel& Villas40,29340,700

Sheffield Asset Tokutei
Mokuteki Kaisha

D85

Tateshina
Takinoyu

8,365

8,450

Heijo Tokutei Mokuteki
KaishaD86

Hotel MyStays Okayama

2,613

2,640

NipporiTokutei
Mokuteki Kaisha

D87

Hotel MyStays
Station

2,445

2,470

Shiretoko
Tokutei
Mokuteki Kaisha

D88

Hotel MyStays Soga

2,039

2,060

NipporiTokutei
Mokuteki Kaisha

D89

Tazawako Lake Resort &
Onsen

1,475

1,490

Heijo Tokutei Mokuteki
Kaisha57,23057,810-Property
Number

Property Name

D84

Grand

Hotel

Aomori

Total

Seller(Note 1) Acquisition Price does not include adjustments for property taxes, city planning taxes, or nationalor local consumption taxes. Hereinafter the same shall apply.
(Note 2) Appraisal Value is based on appraisal value stated in the appraisal report by the Japan Real Estate
Institute. , JLL Morii Valuation & Advisory K.K., The Tanizawa Sōgō Appraisal Co., Ltd. or Daiwa
Real Estate Appraisal Co., Ltd. on the valuation date of June 1, 2023.

- 16 -

(e) Overview of Results of Operations and Distributions
As a result of the operations mentioned above, operating revenues for the Reporting Period increased by JPY
2,904 million from the previous period (+18.2%) to JPY 18,819 million, resulting in a net income of JPY 11,032
million, an increase of JPY 2,118 million from the previous period (+23.8%). Unappropriated retained earnings
including the retained earnings carried forward from the preceding fiscal period (JPY 8,657 million) is JPY 19,690
million. INV has decided to set the distribution per unit (excluding excess profit distribution) of JPY 1,640,
which is the net income per unit (JPY 1,637) plus the reversal of retained earnings (JPY 3 per unit).

3

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.
Total number ofUnitholders’ capital (JPY)
investment units issued
DateType of issue
ReferenceandoutstandingTotal(units)Increase
Increase
Total(units)409,524
6,076,364
23,317,887,036 234,410,427,350 (Note 1)
July 18, 2019
Public offering
August 15, 2019

August 22, 2019

July 31, 2023

Third-party
allotment
Reversal of
allowance fortemporarydifferences
adjustment
Public offering

20,476

6,096,840

1,165,882,964

235,576,310,314(Note 2)-

6,096,840

125,201,855

235,701,512,169(Note 3)609,792

6,706,632

32,761,684,992

268,463,197,161(Note 4)

Third-party
30,4896,737,121
1,638,052,014 270,101,249,175 (Note 5)
allotment
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.
New investment units were issued in a third-party allotment at a price of JPY 56,939 per unit for the
purpose of raising a part of the funds for the acquisition of specified assets.
INV decided at the Board of Directors' Meeting held on August 22, 2019, the reversal of allowancefor temporary difference adjustments for incorporation into unitholders' capital.
New investment units were issued in a public offering at a price of JPY 55,566 per unit (JPY 53,726
after deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new
properties.
New investment units were issued in a third-party allotment at a price of JPY 53,726 per unit for the
purpose of raising a part of the funds for the acquisition of specified assets.

August 28, 2023
(Note 1)

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

Trends in Trading Prices of Investment Securities
The highest and lowest prices (trading prices) in the Real Estate Investment and Trust Securities Section of theTokyo Securities Exchange on which the investment securities of INV are listed are as follows.
Real Estate Investment and Trust Securities Section, Tokyo Securities Exchange(Unit: JPY)
37th fiscal
38th fiscal
39th fiscal
40th fiscal
41st fiscal
PeriodperiodperiodperiodperiodperiodClosing month
HighestLowestDecember
2021
45,800June
2022
45,800December
2022
52,500June
2023
59,600December
2023
65,20034,45034,00036,25048,25053,800- 17 -

4

Distribution PerformanceWith respect to distribution of earnings for the Reporting Period, INV decided that distribution per unit
(excluding excess profit distribution) is JPY 1,464 without reversing retained earnings.
Period37th fiscal
periodCalculated Period

Jul. 1, 2021 to
Dec. 31, 2021

Unappropriatedretained earnings(JPY thousand)Reserved profit(JPY thousand)Total cash
distribution(JPY thousand)(Distribution perunit) (JPY)
Total profit
distribution(JPY thousand)(Profit distribution
per unit)(JPY)
Total refund ofinvestment(JPY thousand)(Refund ofinvestment per unit)(JPY)
Total distribution
from the allowancefor temporary
differences
adjustment out of
total refund ofinvestment(JPY thousand)(Distribution fromthe allowance fortemporarydifferences
adjustment per unit
out of refund ofinvestment per unit)(JPY)
Total distribution
from unitholders’equity under the tax
laws out of the total
refund of investment(JPY thousand)Distribution fromunitholders’ equity
under the tax lawsout of refund ofinvestment per unit
(JPY)

38th fiscal
periodJan. 1, 2022
to Jun. 30,
2022

39th fiscal
periodJul. 1, 2022 to
Dec. 31, 2022

40th fiscal
periodJan. 1, 2023
to Jun. 30,
2023

41st fiscal
periodJul. 1, 2023 to
Dec. 31, 2023

9,676,221

9,679,301

13,742,562

17,583,734

19,690,532

8,664,146

8,667,226

8,669,991

8,657,960

8,641,653

1,012,075

1,012,075

5,072,570

8,925,773

11,048,878

(166)

(166)

(832)

(1,464)(1,640)1,012,075

1,012,075

5,072,570

8,925,773

11,048,878

(166)

(166)

(832)

(1,464)(1,640)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- 18 -

5

Future operational policy and issues to be addressed
Outlook for the Fiscal Period Ending June 30, 2024
The Japanese economy is expected to continue its gradual recovery led by domestic demand. However, there
are notable downside factors to the economy. In particular, high prices may restrain the growth of personal
consumption, and the rate of wage increases in the spring labor struggle (Shunto) will be a factor that will
determine the sustainability of the economic recovery in the future. Other factors, such as the slowdown ofoverseas economies and supply constraints due to labor shortages, are also expected to affect the tempo of
economic recovery.
In the hotel market, demand in both the domestic/inbound and leisure/business segments is expected toremain stable.
In the rental housing market, the population outflow trend from central areas caused by the impact of the
COVID-19 infection has recently turned into a population inflow trend again, which is expected to lead tohigher occupancy rates and higher unit rents in the future.
(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. In addition to access to
Fortress’ global real estate expertise, INV will actively promote efforts to acquire new demand under theenvironment of "Post-Corona" and flexibly respond to changes in the external environment whileemphasizing customer safety and security. Going forward, INV will continue to implement various
strategies for further growth and financial stability, including the following measures.
Further external growth utilizing sponsor support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
Response to the risk of rising interest rates
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, wherecontinued growth in portfolio revenues would be anticipated, and residential properties, especially whererental growth could be achieved, to build a portfolio with a good balance between growth and stability.
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 presence ofcompeting properties among other factors, and consider acquiring properties with strong competitiveness, inwhich it believes it can achieve increases in rent.

- 19 -

Properties Acquired from affiliates of the Fortress Group (as of the date of this document)
Year

Properties acquired

Total acquisition price

2012
2014

24 residential properties (Note 1)
20 hotels

JPY 14,043 million (Note 1)
JPY 45,373 million

2015

14 hotels andthree residential properties (Note 2)

JPY 45,238 million (Note 2)

2018

11 hotels andtwo residential properties
six hotels andtwo residential properties (Note 3)
12 hotels (Note 4)

JPY 104,280 million (Note 4)

2019
2020

18 hotels
Two hotels

JPY 82,646 million
JPY 16,236 million

2016
2017

JPY 92,804 million
JPY 90,006 million (Note 3)2023

Six hotels
JPY 57,230 million
120 properties
JPY 547,858 million
Total(of which 89 are hotels and 31 are(of which hotels: JPY 496,220 million;
residential properties)
residential: JPY 51,638 million)(Note 1) Of the properties acquired from affiliates of the Fortress Group, 15 residential properties have been
sold.
(Note 2) Of the properties acquired from affiliates of the Fortress Group, one residential property has been
sold.
(Note 3) Of the properties acquired from affiliates of the Fortress Group, one residential property has beensold. Sheraton Grande Tokyo Bay Hotel was acquired through a special purpose company, of
which INV owns the preferred equity interest, and is counted as one property and INV’s investment
amount of the preferred equity interest is counted as the acquisition price of the preferred equity
interest.
(Note 4) The Cayman Hotels acquired by the Cayman SPC, of which INV owned the TK interest, are counted
as two properties and INV’s investment amount of the TK interest is used as the acquisition priceof the TK interest. After the Structure Change, INV currently has direct ownership of theLeasehold of the Cayman Hotels.
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.
(ii)

Strategy for internal growth(Hotels)
Of the 90 domestic hotels (Note 1) owned by INV as of the end of the Reporting Period, 82 hotels use a variable
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 79 hotels of the 82 hotels,
MHM and subsidiaries of MHM have implemented sophisticated revenue management initiatives seeking tomaximize revenue through effectively taking in accommodation demand. As a result, INV can directly enjoy
the hotel revenue upside through this variable rent scheme.
In response to the reduction in hotel demand, the MHM Group has taken steps to reduce hotel operating
expenses and recover revenues by reviewing its operational strategy. During the recovery phase of hotel
demand in the future, INV will strive to minimize the impact of rising costs such as utility costs and foodstuffs
by means of a thorough review of staffing and work shifts, continuous efforts to reduce fixed costs, andstrategies to maximize GOPPAR (GOP per the number of rooms available for sale).
The MHM Group vigorously worked to stimulate demand from domestic customers by providing corporate
customers with diverse options including a new lineup of meeting options highlighting strict measures to- 20 -

reduce the spread of COVID-19 and various options including educational tours and employee training while
grasping changes in customer demand under the “Post-Corona” environment. In addition, the MHM Groupis focusing on creating demand, including continuation of delivery and take-out services and the developmentof new menus through directly managed restaurants in the hotel.
For hotels, renovation of rooms and replacement of fixtures and fittings are indispensable to maintain andincrease revenues and operate stably in a planned manner.
(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 ensuring hightenant satisfaction.
Therefore, INV will continue to monitor current strategic plans with flexible
implementation as it sees fit.
(iii) Financial strategy
INV will continue to extend the average interest-bearing debt repayment periods, diversify the loan maturity
dates and diversify financing measures while paying attention to fund procurement costs, as well as
maintaining an appropriate fixed interest rate ratio to mitigate the risk of rising interest rates.
In addition, INV will seek to improve the credit rating (the long-term issuer rating “A” (Outlook: Positive))
obtained from Japan Credit Rating Agency, Ltd. (JCR) by proceeding with these measures.
(iv) Compliance risk management
While the executive director of INV concurrently serves as the representative director at CIM, two supervisory
directors (an external attorney and an external 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 in place acompliance committee which, chaired by such compliance officer, is in charge of deliberating on compliancewith laws, regulations and other relevant matters as well as transactions with sponsor related parties.
Compliance committee meetings are attended by an outside expert (an attorney) who, sitting in as a compliancecommittee member, conducts rigorous deliberations on the existence of conflicts of interest in transactions withsponsor related parties as well as strict examinations with respect to INV’s compliance with laws and regulations.
No resolution will be adopted unless the outside expert agrees.
When INV conducts certain transactions such as asset acquisition from sponsor related parties, prior approvalsby the Board of Directors of INV are required to ensure an objectivity in deliberation regarding conflicts ofinterests. 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 the representative 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 realestate investment management from the viewpoint of sustainability such as economic and social development
and contributing to global environmental conservation, and regard improvement of sustainability as animportant management issue. INV and CIM believe that the incorporation of ESG considerations into the realestate investment management business, which is our primary business, is essential to maximizing unitholder
value over the medium to long term and contributes to maximizing INV's investment returns.

- 21 -

Thus, INV and CIM have established a “Sustainability Policy” to set basic policies for sustainability and put
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” and the “Waste Management Policy” which stipulate efforts to
reduce environmental impact as initiatives for environment.
In addition, CIM has established the“Sustainable Procurement Policy” in order to promote initiatives for ESG throughout the value chain of INV's
real estate portfolio and concluded the “Green Lease” contract with tenants to collaborate with tenants on
measures related to the environmental consideration of real estate, such as proactive introductions of energysaving equipment such as LED lighting.
Furthermore, as of the date of this document, INV acquired CASBEE Certification for Buildings (Existing
Buildings) for two hotels, and Certification for CASBEE for Real Estate for two residential properties.
CASBEE is a method that comprehensively assesses the quality of a building, and evaluates features such as
interior comfort and scenic aesthetics, in consideration of environment practices including use of materials andequipment that save energy or achieve smaller environmental loads. Also, as of the date of this document, 19
hotels owned by INV acquired the certification of Building-Housing Energy-efficiency Labeling System(“BELS”). In particular, Hotel MyStays Premier Akasaka, Hotel MyStays Fukuoka Tenjin, Hotel MyStays
Yokohama Kannai Hotel MyStays Oita, Hotel MyStays Haneda and Hotel MyStays Matsuyama have been
rated five stars “★★★★★” due to high energy conservation performance.
Following the acquisition of environmental certifications for its properties, INV issued green bonds in
September 2023 and December 2023 to further promote its sustainability initiatives and to strengthen its fundraising base by expanding the investor base interested in ESG investment.
As initiatives for society, CIM is working on various measures for tenants and CIM’s officers and employees.
CIM conducts the “Tenant Satisfaction Survey” for residents of INV’s residential properties to collect opinions
and requests of residents and utilize them for asset management, and provides sustainability-focused training
for all officers and employees at least once a year to help officers and employees acquire knowledge and raiseawareness of sustainability considerations in line with business practices. Moreover, as initiatives for CIM’s
employees, CIM conducts an employee satisfaction survey once every three years with the aim of improving
its working environment, and gives full subsidy for a comprehensive medical checkup without age restrictions.
As a result of other sustainability promotion activities, INV received a "3-Star" rating in the 2023 GRESB Real
Estate Assessment, an international benchmark assessment that measures ESG integration of real estatecompanies and funds, on a five-level rating scale, and an "A level" in the GRESB Public Disclosure assessment,
the highest rating.
INV will continue to recognize its social responsibility to the environment and local communities as a J-REITwith hotels and residences as our core assets, and will proactively implement ESG-friendly investment
management and sustainability initiatives that take advantage of asset characteristics and carry out social
contribution activities.

6

Significant Subsequent Events
Not applicable. Reference information is stated below.
(Reference Information)(a) Debt Financing
INV has decided to execute new borrowings (New Syndicate Loan (012) and Term Loan (019)) on January 12,2024 and borrowed on January 16, 2024 and January 24, 2024 in order to repay one of the tranches of New
Syndicate Loan (M) in the amount of JPY 5,796 million, one of the tranches of New Syndicate Loan (L) in theamount of JPY 4,805 million, New Syndicate Loan (N) in the amount of JPY 3,544 million and New Syndicate
Loan (006) in the amount of JPY 10,408 million due on January 16, 2024 and Term Loan (010) in the amount of
JPY 1,550 million, Term Loan (011) in the amount of JPY 1,700 million and Term Loan (012) in the amount of
JPY 6,800 million due on January 24, 2024.

- 22 -

(i)New Syndicate Loan (012)
Borrowing
Date

BorrowingAmount(JPY million)

Interest Rate(annual rate)

Maturity
Date

Borrowing
MethodResona Bank, Limited

January 16,
2024

1,200

Variableinterest rate
(Note 1)March 16, 2025

Unsecured/
non guarantee

SBI Shinsei Bank, Limited

January 16,
2024

369

Variableinterest rate
(Note 2)

March 14, 2027

Unsecured/
non guarantee

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited
Aozora Bank, Ltd.
The Nomura Trust andBanking Co., Ltd.

January 16,
2024

5,308

Variableinterest rate
(Note 3)

March 14, 2028

Unsecured/
non guarantee

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedJanuary 24,
2024

5,025

Variableinterest rate
(Note 3)

March 14, 2028

Unsecured/
non guarantee

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedDevelopment Bank of Japan,
Inc.
The Nomura Trust andBanking Co., Ltd.

January 16,
2024

5,406

Variableinterest rate
(Note 4)

March 14, 2029

Unsecured/
non guarantee

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedJanuary 24,
2024

5,025

Variableinterest rate
(Note 4)

March 14, 2029

Unsecured/
non guarantee(green loan)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedDevelopment Bank of Japan,Inc.
San ju San Bank, Ltd.
The Nomura Trust andBanking Co., Ltd.

January 16,
2024

8,970

Variableinterest rate
(Note 5)

March 14, 2030

Unsecured/
non guarantee

Lender

Total(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)31,303

1-month JPY TIBOR (Base Rate) + spread (0.20000%)
3-month JPY TIBOR (Base Rate) + spread (0.30000%)
3-month JPY TIBOR (Base Rate) + spread (0.40000%)
3-month JPY TIBOR (Base Rate) + spread (0.50000%)
3-month JPY TIBOR (Base Rate) + spread (0.60000%)- 23 -

(ii) Term Loan (019)
Lender
The Tokyo Star Bank,
LimitedOutstanding
Interest Rate
Balance(annual rate)(JPY million)
Variable
January 16, 2024
2,440interest rate
(Note 1)
Borrowing
Date

Maturity
Date

Borrowing
MethodMarch 14,2029

Unsecured/
non guarantee(Note 1) 3-month JPY TIBOR (Base Rate) + spread (0.50000%)(b) Issuance of Investment Corporation Bonds
INV issued investment corporation bonds to individual investors as follows for the purpose of raising a
portion of funds for repayment of existing borrowings while at the same time lengthening the average
maturity period of its debt and further diversifying repayment dates for interest-bearing debt.
Bond Series

Issue Date

Issue
Interest Rate Redemption
AmountDate(JPY million) (annual rate)

Eleventh Series Unsecured
Investment Corporation Bonds(with pari passu conditions among
investment corporate bonds)

February
9, 2024

February 9,
2029

6,000

- 24 -

1.470%

Abstract
Unsecured /Unguaranteed
Rating: A(JCR)Overview of the Investment Corporation
1

Overview of Investment
By Period

37th fiscal
period38th fiscal
period39th fiscal
period40th fiscal
period41st fiscal
periodResults Dates

As of Dec. 31,
2021

As of Jun. 30,
2022

As of Dec. 31,
2022

As of Jun. 30,
2023

As of Dec. 31,
2023

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

6,096,840

6,096,840

6,096,840

6,096,840

6,737,121

235,701

235,701

235,701

235,701

270,101

31,23830,00527,00525,82926,611

Number of issuable
investment units(Unit)
Number ofinvestment units
issued andoutstanding(Unit)
Unitholders’ capital(JPY million)
Number of total
unitholders

2

Notes regarding Unitholders
Major unitholders at the end of the Reporting Period are as below.
Name

Number of units held

% of total number of investment
units issued and outstanding

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

1,354,762

20.10

Custody BANK of Japan, Ltd. (trust account)

1,166,019

17.30

The Nomura Trust and Banking Co., Ltd.
(investment trust account)362,795

5.38

SSBTC CLIENT OMNIBUS ACCOUNT

181,677

2.69

DEUTSCHE BANK AG, SINGAPORE A/C
CLIENTS (TREATY) 4600601

145,871

2.16

GOLDMAN SACHS INTERNATIONAL

124,638

1.85

JP MORGAN CHASE BANK 385632

116,867

1.73

FJODF GP INV HOLDINGS LLC

115,931

1.72

STATE STREET BANK WEST CLIENT TREATY 505234

109,408

1.62

STATE STREET BANK AND TRUSTCOMPANY 505103

103,9541.543,781,922

56.13

Total
(Note 1) Percentages are rounded down to two decimal places.

- 25 -

3

Notes regarding Directors
Directors at the end of the Reporting Period are listed below.
Position

Executive Director

Name

Naoki Fukuda

Yoshihiro Tamura

Supervisory Director

Hiroyuki Fujimoto(Note 1)

Marika Nagasawa(Note 1)

Concurrent responsibilities
President and CEO,
Consonant Investment
Management Co., Ltd.
(current position)
Attorney,
Shiba-Daimon Law Office
Statutory Auditor,
BEQONE PARTNERS, Inc.
(current position)
Certified Public Accountant,
CPA Fujimoto OfficeOutside Auditor,
BRYCEN Co., Ltd.
(current position)
Outside Director, the Audit &Supervisory Committee
Member,NEO MARKETING INC.
(current position)
Certified Public Accountant,
Avantia GP
Marika Nagasawa Accounting
Firm

Directors’ remunerationfor operating period(JPY thousand)

-

2,400

2,400

400

Ernst & Young
41,900ShinNihon LLC(Note 2)
(Note 1) As of December 21, 2023, Takushi Fujimoto, a former supervisory director, resigned the position ofsupervisory director and Marika Nagasawa assumed the position.
(Note 2) The auditor's remuneration includes 1,200 thousand yen for auditing English financial statements
and 23,000 thousand yen for non-audit remuneration. In addition, non-audit remuneration to aperson belonging to the same network as the accounting auditor is 7,742 thousand yen.
(Note 3) Executive and supervisory directors do not hold INV’s units either in their names or in the namesof third parties. In addition, while they may be directors of organizations not listed above, thoseorganizations as well as those listed above have no conflicts of interest with INV.
AuditorDetermination policy for dismissal or non-reappointment of Auditor
The auditing agreement with the auditor is renewed every accounting period. Dismissals are made in accordancewith the Investment Trust Act, and in addition, non-reappointments are considered by the board of directors of INV
by comprehensively taking into account the auditing quality, auditor remuneration, and other various circumstances.

Notes regarding indemnification agreement between Directors and INV
Not applicable.

- 26 -

4

Notes regarding Directors Liability Insurance
Directors Liability Insurance concluded by INV is as below.

5

Insured Person

Overview of the Insurance Contract

All Executive Directors andSupervisory Directors(Outline of insured event covered by insurance)
Damages and dispute costs incurred by the insured due to a claim fordamages caused by the insured’s actions as a director’s duties will becovered.
(Burden ratio of insurance premium)
INV bears the insurance premiums except those for the special
contract of unitholder derivative suits.
(Measures to ensure that duties are executed properly)
By excluding criminal acts such as bribery and damages of directors
who intentionally commit illegal acts from compensation, measures
are taken so that duties of directors are executed properly.

Asset Management Company, Asset Custody Companies, and General Administrative

Agents
The asset management company, asset custody companies, and general administrative agents at the end of
the Reporting Period are as below.
Delegation category
Name
Asset management company
Asset custody company

Consonant Investment Management Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited

General administrative agent(administration of unitholders’ registry, etc.)
General administrative agent(institutional operations (Note 1))
General administrative agent(accounting operations, etc.)
Special account management company

Sumitomo Mitsui Trust Bank, Limited
Consonant Investment Management Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
Limited (Note 2) / Sumitomo Mitsui Trust Bank,
Limited (Note 3)
Mizuho Bank, Ltd.

General administrative agent(Fiscal agent pertaining to investment corporation
bonds, etc.)(Note 1) (i) Tasks related to the running of general unitholders’ meetings for INV (excluding tasks related tothe mailing of general unitholders’ meetings and the receipt and counting of voting forms), (ii) tasks
related to the running of the meetings of the Board of Directors of INV, and (iii) or tasks incidental
or related to that mentioned in (i) or (ii) are delegated.
(Note 2) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer
savings account registers for special accounts of unitholders of the INV before the merger (former
Tokyo Growth REIT Investment Inc.) as well as tasks related to other transfer savings accountregisters.
(Note 3) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer
savings account registers for special accounts of unitholders of the former LCP as well as tasks
related to other transfer savings account registers.

- 27 -

Status of Investment Corporation’s Assets under Management
1

Composition of INV’s Assets

Type ofasset

RealestatePurposeHotelsGeographic area
(Note 1)
Greater Tokyo
Area (Note 3)
Major regional
citiesFiscal period ended June 30, 2023 Fiscal period ended December 31, 2023
(as of June 30, 2023)(as of December 31, 2023)
Amount held
Percentage ofAmount held
Percentage of(JPY million)
total assets(JPY million)
total assets(Note 2)(%)
(Note 2)
(%)
2

0.0

2

0.0

-

-

-

-

Overseas (Note 4)

33,168

6.7

32,814

5.8

Subtotal

33,1706.7

32,817

5.8

33,1706.7

32,817

5.8

Total real estate

28,383

5.7

28,301

5.0

Major regional
Residences
cities

5,827

1.2

5,784

1.0

Subtotal

34,2106.9

34,086

6.1

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

―

―

―

―

1,588

0.3

1,592

0.3

1,588

0.3

1,592

0.3

Greater Tokyo area

166,28533.5

167,674

29.8

Major regional
cities205,24341.3

259,61246.1

Subtotal

371,52874.8

427,28675.8

Total real estate in trust

407,32782.0

462,965

82.2

Preferred equity interest (Note 5)

17,856

3.6

17,856

3.2

Greater Tokyo area

Hotels

Deposits and other assets
Total assets (Note 6)

38,465

7.7

49,7548.8

496,819100.0

563,393100.0(440,498)(88.7)(495,782)(88.0)(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 arecalculated by including book value of accompanying FF&E, in principle.
(Note 3) While Hotel MyStays Haneda is held as trust beneficiary interests, part of accompanying FF&E is heldin kind, which falls under this category.
(Note 4) The Leasehold of the Cayman Hotels falls under the category of “Real estate” for “Overseas.” Theleasehold interests are the rights equivalent to long-term real estate leasehold rights for buildings andland 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 Island local time), a change frommaking investments based on the TK agreement to directly owning the Leasehold of the Cayman Hotels,
which are the underlying assets of the TK interest.
(Note 5) Preferred equity interest issued by Kingdom Special Purpose Company, with the Sheraton Grande Tokyo
Bay Hotel as an underlying asset (asset in trust of trust beneficiary interest acquired by Kingdom Special
Purpose Company, which is the real estate that serves as the main source of revenue for Kingdom Special
Purpose Company).

- 28 -

(Note 6) The figures indicated in parenthesis under “Total assets” show the amounts related to owned real estate(excluding the amount of preferred equity securities owned).

2

Major Properties
The overview of INV’s major properties (top 10 properties by book value) (Note 1) at the end of the Reporting
Period is as below.
Name of property

Book value(JPY million)

Leasablearea (m2)(Note 2)

Leased area(m2)

Occupancy
rate (%)(Note 3)

Ratio ofrentalrevenue (%)(Note 4)Main use

D84

Fusaki Beach Resort Hotel & Villas

40,122

23,573.57

23,573.57

100.0

7.5

Hotel

D200

Westin Grand Cayman Seven Mile
Beach Resort & Spa

27,593

21,528.23

21,528.23

100.0

-

Hotel

D43

Hotel MyStays Gotanda Station

26,095

10,137.88

10,137.88

100.0

3.3

Hotel

D60

Hotel MyStays Premier Akasaka

20,0318,620.69

8,620.69

100.0

3.3

Hotel

D44

Hotel Epinard Nasu

18,05737,702.33

37,702.33

100.0

6.4

Hotel

D61

Hotel MyStays Premier Sapporo Park

15,76021,670.64

21,670.64

100.0

2.8

Hotel

D64

Hotel MyStays Sapporo Aspen

15,12815,313.17

15,313.17

100.0

2.6

Hotel

D50

Hotel MyStays Shin Osaka
Conference Center

12,756

13,026.99

13,026.99

100.0

1.7

Hotel

D47

Hotel MyStays Premier Kanazawa

12,146

13,121.00

13,121.00

100.0

1.5

Hotel

D82

Hotel MyStays Premier Narita

9,727

36,519.70

36,519.70

100.0

1.7

Hotel

Total

197,420

201,214.20

201,214.20

100.0

30.7

(Note 1) Securities described in “6 Asset Portfolio of Securities” later in this document are excluded.
(Note 2) Leasable area of Westin Grand Cayman Seven Mile Beach Resort & Spa indicates the area subject
to management contract.
(Note 3) “Occupancy rate” is calculated by dividing the leased area by leasable area, and rounded to one
decimal place.
(Note 4) “Ratio of rental revenue” are rounded to one decimal place.

- 29 -

3

Asset Portfolio of Real Estate, etc.
The portfolio of the properties (real estate and trust beneficiary interest in real estate) held by INV at the endof the Reporting Period is as below.

Name of property

Location(Note 1)

Type of
asset

A26

Nisshin Palacestage
Daitabashi

1-31-2 Izumi, Suginami-ku, Tokyo

A28

Growth Maison Gotanda

2-26-6 Nishi-Gotanda, Shinagawaku, Tokyo

A29

Growth Maison Kameido

6-58-16 Kameido, Koto-ku, Tokyo

A30

Emerald House

3-27-18 Itabashi, Itabashi-ku, Tokyo

A32

Suncrest Shakujii-Koen

3-15-35 Takanodai, Nerima-ku,
Tokyo

A33

Growth Maison ShinYokohama

3-16-2 Shin-Yokohama, Kohoku-ku,
Yokohama-shi, Kanagawa

A34

Belle Face UenoOkachimachi

1-27-10 Higashi-Ueno, Taito-ku,
Tokyo

A35

Grand Rire Kameido

3-39-12 Kameido, Koto-ku, Tokyo

A37

Growth Maison Yoga

1-15-15 Okamoto, Setagaya-ku,
Tokyo

A38

Route Tachikawa

3-7-6 Nishikicho, Tachikawa-shi,
Tokyo

A39

Shibuya-Honmachi
Mansion2-35-2 Honmachi, Shibuya-ku,
Tokyo

A40

City Heights Kinuta

4-13-15 Kinuta, Setagaya-ku, Tokyo

A41

Acseeds Tower
Kawaguchi- Namiki

2-5-13 Namiki, Kawaguchi-shi,
Saitama

A43

College Square Machida

3-4-4 Nakamachi, Machida-shi,
Tokyo

A44

Belair Meguro

1-2-15 Meguro, Meguro-ku, Tokyo

A45

Wacore Tsunashima I

2-7-47 Tarumachi, Kohoku-ku,
Yokohama-shi, Kanagawa- 30 -

Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY2(m ) (Note 2)
Periodmillion)(JPY million)(Note 3)
1,771.13

1,320

1,082

1,051.50

1,150

810

1,367.96

1,310

921

2,152.31

1,510

1,299

3,029.16

1,290

1,045

1,858.44

1,330

919

1,351.11

1,190

893

1,562.26

1,120

757

1,015.34869

707

1,368.57

733

692

1,167.50743

713

1,235.93639

657

1,210.74832

485

1,047.75

537

549

557.05667

544

907.46575

553

Name of property

Location(Note 1)

Type of
asset

A46

Foros Nakamurabashi

1-6-6 Kouyama, Nerima-ku, Tokyo

A47

Growth Maison Kaijin

5-29-51 Kaijin, Funabashi-shi, Chiba

A48

College Square Machiya

7-3-1 Arakawa, Arakawa-ku, Tokyo

A59

Towa City Coop
Shinotsuka II

5-49-7 Higashi-Ikebukuro,
Toshima-ku, Tokyo

A61

Bichsel Musashiseki

1-22-7 Sekimachi-Kita, Nerima-ku,
Tokyo

A63

Towa City Coop
Sengencho

4-338-2 Sengencho, Nishi-ku,
Yokohama-shi, Kanagawa

A64Royal Park Omachi

2-11-10 Omachi, Aoba-ku, Sendaishi, Miyagi

A65

Lexington Square
Haginomachi

1-15-18 Haginomachi, Miyaginoku, Sendai-shi, Miyagi

A66

Visconti Kakuozan

2-44 Otanacho, Chikusa-ku,
Nagoya-shi, Aichi

A72

Lexington Square
Honjo Azumabashi

4-20-6 Higashi-Komagata, Sumidaku, TokyoA73

AMS TOWER Minami 6Jo

2-5-15 Minami 6-Jo Nishi, Chuo-ku,
Sapporo-shi, Hokkaido

A84

Revest Heian

2-13-17 Heian, Kita-ku, Nagoya-shi,
Aichi

A87

Excellente Kagurazaka

128-1 Yamabukicho, Shinjuku-ku,
Tokyo, and other one parcel

A90

Queen’s Court Fukuzumi

1-3-10 Fukuzumi, Koto-ku, Tokyo

A92

Belair Oimachi

5-14-17 Higashi-Oi, Shinagawa-ku,
Tokyo

A93

Siete Minami-Tsukaguchi

3-18-29 Minami-Tsukaguchimachi,
Amagasaki-shi, Hyogo

A94

Prime Life Sannomiya
Isogami Koen

4-3-23 Isogamidori, Chuo-ku,
Kobe-shi, Hyogo

A96

Century Park Shinkawa 1bankan

4-1-2 Shinkawacho, Minato-ku,
Nagoya-shi, Aichi

A97

West Avenue

1-5-17 Nishi, Kunitachi-shi, Tokyo

A99

Prime Life Mikage

2-25-11 Mikage Tsukamachi,
Higashinada-ku, Kobe-shi, Hyogo

A101

Lieto Court Mukojima

5-45-10 Mukojima, Sumida-ku,Tokyo- 31 -

Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY(m2) (Note 2)
Periodmillion)(JPY million)(Note 3)815.77652

488

2,040.27580

512

871.35630

443

1,627.13

1,390

779

1,220.24

865

577

3,426.36

1,560

995

1,929.59715

374

1,528.58

464

252

705.75305

225

784.74786

399

4,460.56

1,310

854

1,554.03

878

477

701.92878

482

765.18820

400

530.60681

376

1,020.86

581

324

789.12579

320

1,477.62

551

284

794.80430

302761.18439

253

2,940.20

2,310

1,569

Location(Note 1)Name of property

Type of
asset

A102

Lieto Court Nishi-Ojima

2-41-14 Ojima, Koto-ku, Tokyo

A103

Royal Parks Momozaka

5-38 Fudegasakicho, Tennouji-ku,
Osaka-shi, Osaka

A104

Royal Parks Shinden

3-35-20 Shinden, Adachi-ku, Tokyo

A106

Royal Parks Seasir
Minami-Senju

3-41-7 Minami-Senju, Arakawa-ku,
Tokyo

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Subtotal
B18

AEON TOWN Sukagawa

105 Furukawa, Sukagawa-shi,
Fukushima

Trust
beneficiaryinterest

Subtotal
D01

Hotel MyStays Kanda

1-2-2 Iwamotocho, Chiyoda-ku,
Tokyo

D02

Hotel MyStays Asakusa

1-21-11 Honjo, Sumida-ku, Tokyo

D03

Hotel MyStays KyotoShijo

52 Kasabokocho, Higashiiru,
Aburanokoji, Shijyodori,Shimogyo-ku, Kyoto-shi, Kyoto

D04

MyStays Shin-Urayasu
Conference Center

2-1-4 Akemi, Urayasu-shi, Chiba

D05

Hotel MyStays Maihama

3-5-1 Tekkodori, Urayasu-shi,
Chiba

D06

Hotel MyStays Premier
Dojima2-4-1 Sonezakishinchi, Kita-ku,
Osaka-shi, Osaka

D07

Hotel MyStays NagoyaSakae

2-23-22 Higashi-Sakura, Naka-ku,
Nagoya-shi, Aichi

D08

Hotel MyStays SakaisujiHonmachi

1-4-8 Awaji-machi, Chuo-ku,
Osaka-shi, Osaka

D09

Hotel MyStays Yokohama

4-81 Sueyoshicho, Naka-ku,
Yokohama-shi, Kanagawa

D10

Hotel MyStays Nippori

5-43-7 Higashi-Nippori, Arakawaku, Tokyo

D11

Hotel MyStays FukuokaTenjin-Minami

3-14-20 Haruyoshi, Chuo-ku,
Fukuoka-shi, Fukuoka

D12

Flexstay Inn Iidabashi

3-26 Shin-Ogawamachi, Shinjukuku, Tokyo

D13

Hotel MyStays
Ueno Inaricho

1-5-7 Matsugaya, Taito-ku, Tokyo

D14

Flexstay Inn Shinagawa

1-22-19 Kita-Shinagawa,Shinagawa-ku, Tokyo

D15

Flexstay Inn Tokiwadai

1-52-5 Tokiwadai, Itabashi-ku,
Tokyo- 32 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY(m2) (Note 2)
Periodmillion)(JPY million)(Note 3)
2,048.28

2,240

1,514

8,776.26

3,290

2,417

15,797.29

6,200

4,432

6,496.86

3,280

2,392

86,518.75

48,22934,086

18,440.58

2,380

1,592

18,440.58

2,380

1,592

2,585.72

5,060

2,758

3,327.38

4,480

2,436

7,145.53

8,300

5,387

6,232.30

7,610

4,310

2,456.36

7,540

4,433

9,445.32

6,610

3,609

9,064.71

5,620

2,473

4,188.83

3,340

2,200

7,379.43

4,190

2,060

1,719.29

2,570

1,719

3,412.71

5,820

1,367

2,953.38

2,110

1,299

1,150.76

2,050

1,159

1,134.52

2,060

1,159

2,539.75

2,190

1,171

Name of property

Location(Note 1)

Type of
asset

D16

Flexstay Inn Sugamo

3-6-16 Sugamo, Toshima-ku, Tokyo

D17

Hotel MyStays Otemae

1-3-2 Tokuicho, Chuo-ku, Osakashi, Osaka

D18

Hotel MyStays
Kiyosumi Shirakawa

1-12-16 Tokiwa, Koto-ku, Tokyo

D19

Flexstay Inn Nakanobu P1

4-27-12 Futaba, Shinagawa-ku,
Tokyo

D20

Flexstay Inn Nakanobu P2

4-27-8 Futaba, Shinagawa-ku,
Tokyo

D21

APA Hotel
Yokohama-Kannai

3-37-2 Sumiyoshicho, Naka-ku,
Yokohama-shi, Kanagawa

D22

Hotel MyStays
Hakodate-Goryokaku

26-17 Honcho, Hakodate-shi,
Hokkaido

D23

Flexstay Inn Shirogane

5-10-15 Shirokane, Minato-ku,
Tokyo

D24

Hotel MyStays Haneda

5-1-13 Haneda, Ota-ku, Tokyo

D25

Hotel MyStays Kameido
P1

6-32-1 Kameido, Koto-ku, Tokyo

D26

Hotel MyStays Ueno
Iriyaguchi

5-5-13 Higashi-Ueno, Taito-ku,
Tokyo

D27

Hotel MyStays Kameido
P2

6-7-8 Kameido, Koto-ku, Tokyo

D28

Hotel MyStays Shimizu

1-23 Masagocho, Shimizu-ku,
Shizuoka-shi, Shizuoka

D29

Super Hotel Shinbashi/
Karasumoriguchi

5-16-4 Shinbashi, Minato-ku, Tokyo

D30

Flexstay Inn Higashi-Jujo

2-10-2 Nakajujo, Kita-ku, Tokyo

D31

Hotel MyStays
Utsunomiya

2-4-1 Higashi-Shukugo,
Utsunomiya-shi, Tochigi

D32

Flexstay Inn KawasakiKaizuka

1-13-2 Kaizuka, Kawasaki-ku,
Kawasaki-shi, Kanagawa

D33

Comfort Hotel Toyama

1-3-2 Takara-machi, Toyama-shi,ToyamaD34

Flexstay Inn KawasakiOgawacho

15-9 Ogawacho, Kawasaki-ku,
Kawasaki-shi, Kanagawa

D35

Flexstay Inn Ekoda

8-6 Sakaecho, Nerima-ku, Tokyo

D36

Super Hotel Tokyo-JR
Tachikawa Kitaguchi

2-21-9 Akebonocho, Tachikawa-shi,
Tokyo

D37

Super Hotel JR Uenoiriyaguchi

7-9-14 Ueno, Taito-ku, Tokyo- 33 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY(m2) (Note 2)
Periodmillion)(JPY million)(Note 3)2,089.86

2,220

1,060

4,956.66

2,570

1,093

2,673.64

1,540

819

770.56844

543

391.49406

275

6,462.48

10,0007,107

7,830.62

4,000

2,612

1,754.06

2,430

2,046

5,400.16

8,470

6,853

4,338.47

7,730

5,171

2,247.92

3,980

3,538

2,793.99

5,180

3,412

3,559.81

2,510

1,959

1,403.89

1,880

1,552

1,714.53

1,390

1,245

11,733.23

2,100

1,180

1,190.57

1,160

849

3,305.64

1,180

856

725.60913

843

3,932.93

4,690

4,679

1,832.97

1,240

1,038

1,279.16

1,200

1,032

Name of property

Location(Note 1)

Type ofasset

D38

Hotel MyStays
Shinsaibashi

1-9-30 Nishi-Shinsaibashi, Chuoku, Osaka-shi, Osaka

D39

Comfort Hotel Kurosaki

3-13-13 Kurosaki, Yahatanishi-ku,
Kitakyusyu-shi, Fukuoka

D40

Comfort Hotel Maebashi

2-18-14 Omotecho, Maebashi-shi,
Gunma

D41

Comfort Hotel TsubameSanjo

2-115 Sugoro, Sanjo-shi, Niigata

D42

Comfort Hotel Kitami

3-4 Ohdori-Nishi, Kitami-shi,
Hokkaido

D43

Hotel MyStays Gotanda
Station (Note 5)

2-6-8 Nishi-Gotanda, Shinagawaku, Tokyo

D44

Hotel Epinard Nasu
(Note 6)

1-10 Kaidoue (and 59 other landparcels), Oaza-Takakuhei, Nasumachi, Nasu-gun, Tochigi

D45

Hotel MyStays Fukuoka
Tenjin3-5-7 Tenjin, Chuo-ku, Fukuokashi, Fukuoka

D46

Hotel MyStays
Hamamatsucho

1-18-14 Hamamatsucho, Minatoku, Tokyo

D47

Hotel MyStays PremierKanazawa

2-13-5 Hirooka, Kanazawa-shi,Ishikawa

D48

Takamatsu Tokyu REI
Hotel

9-9 Hyogomachi, Takamatsu-shi,
KagawaD49

Hotel MyStays Premier
Hamamatsucho

1-8-5 Hamamatsucho, Minato-ku,
Tokyo

D50

Hotel MyStays Shin
Osaka Conference Center

6-2-19 Nishinakashima, Yodogawaku, Osaka-shi, Osaka

D51

Hotel MyStays PremierOmori

6-19-3 Minami Oi, Shinagawa-ku,
Tokyo

D52

Kamenoi Hotel Beppu

5-17 Chuocho, Beppu-shi, Oita

D53

Hotel MyStays Sapporo
Station4-15 Kita Hachijyo Nishi, Kita-ku,
Sapporo-shi, Hokkaido

D54

Hotel MyStays Yokohama
Kannai

5-65, Onoe-cho, Naka-ku,
Yokohama-shi, Kanagawa and 3other lots

D55

Art Hotel Joetsu

5-1-11, Hon-cho Joetsu-shi, Niigata

D56

Art Hotel Hirosaki City

1-1-2, 1-6, 1-7, 2-1, Omachi,
Hirosaki-shi, Aomori

D57

Hotel MyStays Oita

1-32, Niagemachi Oita-shi, Oita

D58

Hotel MyStays Gotanda

2-5-4, Higashigotanda Shinagawaku, Tokyo

D59

Hotel MyStays Tachikawa

1-8-14, Nishiki-cho Tachikawa-shi,Tokyo- 34 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
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Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY(m2) (Note 2)
Periodmillion)(JPY million)(Note 3)
1,942.01

2,080

2,903

3,207.60

1,200

971

3,653.96

1,100

901

3,098.07

1,060

870

3,009.50883

715

10,137.88

24,50026,09537,702.33

23,40018,057

5,083.06

8,360

7,565

1,951.90

6,300

7,690

13,121.00

12,70012,146

7,148.17

1,720

2,083

6,151.93

10,100

7,882

13,026.99

13,40012,756

11,849.61

10,3009,697

19,422.08

9,810

7,527

7,267.88

8,820

7,336

4,501.18

5,710

4,996

7,563.60

2,660

2,544

14,806.73

2,500

2,561

3,216.01

1,680

1,402

1,839.77

4,310

4,028

3,844.64

3,420

3,158

Name of property

Location(Note 1)

Type ofasset

D60

Hotel MyStays Premier
Akasaka

2-17-54, Akasaka Minato-ku, Tokyo

D61

Hotel MyStays Premier
Sapporo Park

2-2-10, Minamikujo Nishi, Chuoku, Sapporo-shi, Hokkaido

D62

Hotel MyStays Ueno East

5-5-6, Higashi Ueno, Taito-ku,
Tokyo

D63

Hotel MyStays Midosuji
Honmachi

3-2-10, Honmachi, Chuo-ku,
Osaka-shi, Osaka

D64

Hotel MyStays Sapporo
Aspen

5-1 Nishi 4-chome, Kita 8-jo, Kitaku, Sapporo-shi, Hokkaido, andseven other lots

D65

Art Hotel Ishigakijima554-2 Nishimaji Okawa, Ishigaki‐
shi, Okinawa, and four other lots

D66

Hotel MyStays Fuji Onsen
Resort2654 Arakura Deguchi,
Fujiyoshida-shi, Yamanashi, and 15
other lots

D67

Hotel Sonia Otaru

1-4-20 Ironai, Otaru-shi, Hokkaido

D68

Hotel MyStays Kanazawa
Castle10-17 Konohana-machi, Kanazawashi, Ishikawa

D69

Art Hotel Niigata Station

1-1 Sasaguchi, Chuo-ku, Niigatashi, Niigata

D70

Hotel MyStays Nagoya
Nishiki

3-8-21 Nishiki, Naka-ku, Nagoyashi, Aichi

D71

Hotel Nord Otaru

1-4-16 Ironai, Otaru-shi, Hokkaido

D72

Hotel
MyStays
Kagoshima Tenmonkan

2-7 Yamanokuchi-cho, Kagoshimashi, Kagoshima

D73

Art Hotel Asahikawa

6-29-2 7-jo-dori, Asahikawa-shi,
Hokkaido

D74

Hotel
Matsuyama

1-10-10 Otemachi, Matsuyama-shi,
Ehime

D75

Hotel MyStays Sapporo
Susukino

1-6 Nishi 5-Chome, Minami 7-jo,
Chuo-ku, Sapporo-shi, Hokkaido,
and one other lot

D76

Hotel MyStays Sapporo
Nakajima Park

1-20 Nishi 1-chome, Minami 14-jo,
Chuo-ku, Sapporo-shi, Hokkaido

D77

Hotel MyStays Sapporo
Nakajima Park Annex

4-3 Nishi 1-chome, Minami 11-jo,
Chuo-ku, Sapporo-shi, Hokkaido

D78

Flexstay Inn Sakuragicho

2-72-2 Hanasaki-cho, Naka-ku,
Yokohama-shi, Kanagawa, andfour other lots

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

2-6-7 Kuramae, Taito-ku, Tokyo

D80

Hotel
Kagoshima
Annex

1-20 Gofuku-machi, Kagoshimashi, Kagoshima

D81

Hotel MyStays Nayoro

MyStays

MyStaysTenmonkan

11 Minami 5-chome, Nishi 3-jo,
Nayoro-shi, Hokkaido, and one
other lot- 35 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY(m2) (Note 2)
Periodmillion)(JPY million)(Note 3)8,620.69

23,40020,031

21,670.64

16,30015,7604,396.02

5,460

5,096

3,429.43

3,130

4,718

15,313.17

15,40015,12817,247.54

9,670

9,374

5,498.49

10,7008,456

6,509.41

6,420

5,440

5,931.84

5,750

5,568

10,403.01

5,780

5,137

6,077.99

5,240

5,006

6,047.43

4,380

4,145

7,659.55

3,550

3,290

25,131.84

3,340

2,817

8,274.37

3,210

2,792

2,853.26

2,980

2,944

5,473.41

2,010

1,999

1,775.21

1,580

1,560

1,308.61

1,490

1,378

2,156.70

1,270

1,253

2,047.70

1,240

1,135

1,985.27

972

840

Location(Note 1)Name of property

Type ofasset

D82

Hotel MyStays Premier
Narita40 Yokomine Oyama, Narita-shi,
Chiba, and 14 other lots

D83

Art Hotel Morioka

3-3-18 Odori, Morioka-shi, Iwate

D84

Fusaki Beach Resort Hotel& Villas1625-6 Arakawa Fusaki, Ishigakishi, Okinawa, and sixty other lots

D85

Tateshina
Takinoyu

D86
D87
D88
D89

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

4035-187 Minamiyama Kuridaira yori
Trust
Hotel Mimuro Oogaya made, Kitayama,
beneficiary
Chino-shi, Nagano,interest
and sixteen other lots
Trust
9-16, Honmachi, Kita-ku,
Hotel MyStays Okayama
beneficiary
Okayama-shi, Okayama
interest
Trust
Hotel MyStays Aomori 1-8-6 Shinmachi, Aomori-shi,
beneficiary
StationAomoriinterest
Trust
2-7-13 Minamicho, Chuo Ward,
Hotel MyStays Soga
beneficiary
Chiba-shi, Chibainterest
82-117 Shimotakano, Tazawako
Trust
Tazawako Lake Resort &Obonai, Senboku-shi, Akita, andbeneficiary
Onsen
forty-one other lots
interest
Grand

Appraisal value
as of the end ofBook value
Leasable area the Reporting(JPY(m2) (Note 2)
Periodmillion)(JPY million)(Note 3)36,519.70

10,5009,727

16,727.08

5,520

5,204

23,573.57

40,90040,122

20,577.41

8,600

8,472

3,023.27

2,680

2,674

3,963.86

2,470

2,420

3,398.18

2,110

2,060

7,289.75

1,490

1,511

D200

Westin Grand Cayman
Seven Mile Beach Resort& Spa

30620 Seven Mile Beach Road,
Grand Cayman, Cayman Islands

The
Leasehold21,528.23

D201

Sunshine Suites Resort

1465 Esterley Tibbetts Highway,
Grand Cayman, Cayman Islands

The
Leasehold6,723.11

67,199(USD 473,800
thousand)(Note 7)
10,495(USD 74,000
thousand)(Note 7)

27,593

5,221

Subtotal

633,805.87

578,432

460,103

Total

738,765.20

629,041495,782(Note 1) “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 2) Leasable areas of Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort
indicate the areas subject to management contract.
(Note 3) “Appraisal value as of the end of the Reporting Period” is the value appraised or researched by
Asset Research and Development Inc., Japan Real Estate Institute, JLL Morii Valuation & Advisory
K.K., The Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. or CBRE, Inc.,in accordance with the Articles of Incorporation of INV and the regulations of The Investment
Trusts Association, Japan.
(Note 4) Individual trust beneficiary interests were integrated into three groups with other trust beneficiaryinterests when INV procured funds through debt financing backed by trust assets in July 2011. As
a result of disposition of assets and detachment of trust beneficiary interest from an integrated trust
account thereafter, 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- 36 -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 5) “Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated
deeming the owned portion and the floor expansion portion as one.
(Note 6) “Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated
deeming the owned portion and the adjacent land portion as one.
(Note 7) “Appraisal value as of the end of the Reporting Period” is converted into JPY using the exchange
rate of USD 1 = JPY 141.83, which is the exchange rate on the closing date of the fiscal period(December 31, 2023).

Trends for the leasing operations of the properties owned by INV are as below.

Name of property

40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

41st fiscal period(July 1, 2023 to December 31, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)Nisshin Palacestage
Daitabashi

1

89.9

36,719

0.3

1

93.0

35,6520.2

A28 Growth Maison Gotanda

1

100.0

28,459

0.2

1

100.0

28,5080.2

A29

Growth Maison Kameido

1

97.0

35,661

0.3

1

96.9

35,6320.2

A30

Emerald House

1

100.0

47,291

0.4

1

96.9

41,1230.2

A32

Suncrest Shakujii-Koen

1

100.0

40,518

0.3

1

100.0

40,2360.2

A33

Growth Maison ShinYokohama

1

95.5

38,110

0.3

1

95.5

37,7980.2

A34

Belle Face UenoOkachimachi

1

98.5

34,099

0.3

1

100.0

32,1190.2

A35Grand Rire Kameido

1

100.0

26,619

0.2

1

100.0

26,6190.2

A37Growth Maison Yoga

1

100.0

23,340

0.2

1

94.9

23,2000.1

A38

Route Tachikawa

1

100.0

22,781

0.2

1

100.0

22,096

0.1

A39

Shibuya-Honmachi
Mansion1

100.0

21,179

0.2

1

96.7

21,3750.1

A40City Heights Kinuta

1

100.0

19,837

0.2

1

94.6

19,4200.1

A41

Acseeds Tower
Kawaguchi- Namiki

1

94.8

26,947

0.2

1

93.0

26,107

0.2

A43

College Square Machida

1

100.0

16,609

0.1

1

100.0

16,6090.1

A44

Belair Meguro

1

88.1

15,366

0.1

1

96.1

15,6450.1

A45

Wacore Tsunashima I

1

81.9

18,298

0.2

1

82.0

16,6250.1

A46

Foros Nakamurabashi

1

100.0

19,490

0.2

1

100.0

19,4890.1

A47

Growth Maison Kaijin

1

97.4

23,797

0.2

1

100.0

24,1020.1

A26- 37 -Name of property

40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

41st fiscal period(July 1, 2023 to December 31, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

A48

College Square Machiya

1

100.0

14,924

0.1

1

100.0

14,924

0.1

A59

Towa City Coop
Shinotsuka II

1

97.5

37,403

0.3

1

93.7

36,5890.2

A61

Bichsel Musashiseki

1

94.3

23,096

0.2

1

94.3

23,754

0.1

A63

Towa City Coop
Sengencho

1

89.5

59,240

0.5

1

85.2

56,5050.3

A64Royal Park Omachi

1

93.7

26,642

0.2

1

93.9

26,712

0.2

A65

Lexington Square
Haginomachi

1

89.8

18,005

0.2

1

92.4

17,4770.1

A66

Visconti Kakuozan

1

100.0

10,303

0.1

1

77.0

9,664

0.1

A72

Lexington Square Honjo
Azumabashi

1

100.0

19,166

0.2

1

93.9

18,816

0.1

A73

AMS TOWER Minami 6-Jo

1

92.9

45,417

0.4

1

94.7

46,7000.3

A84

Revest Heian

1

100.0

16,953

0.1

1

95.2

23,9570.1

A87

Excellente Kagurazaka

1

78.1

14,624

0.1

1

94.2

19,6640.1

A90

Queen’s Court Fukuzumi

1

95.0

13,641

0.1

1

93.1

17,0370.1

A92

Belair Oimachi

1

90.1

12,935

0.1

1

96.1

15,5640.1

A93

Siete Minami-Tsukaguchi

1

100.0

58,080

0.5

1

100.0

17,4100.1

A94

Prime Life Sannomiya
Isogami Koen

1

96.8

50,396

0.4

1

90.6

14,036

0.1

A96

Century Park Shinkawa 1bankan

1

88.1

157,346

1.3

1

86.3

16,9990.1

A97West Avenue

1

100.0

224,161

1.9

1

100.0

13,6780.1

A99

Prime Life Mikage

1

89.9

36,719

0.3

1

96.7

12,784

0.1

A101 Lieto Court Mukojima

1

100.0

28,459

0.2

1

100.0

58,4390.4

A102 Lieto Court Nishi-Ojima

1

97.0

35,661

0.3

1

99.0

49,841

0.3

A103 Royal Parks Momozaka

1

100.0

47,291

0.4

1

93.2

154,475

0.9

A104 Royal Parks Shinden

1

100.0

40,518

0.3

1

100.0

224,389

1.3

Royal Parks Seasir
Minami-Senju

1

95.5

38,110

0.3

1

95.2

125,7360.8

Subtotal

41

95.9

1,516,269

12.6

41

95.9

1,497,526

9.0

1

100.0

141,287

1.2

1

100.0

141,190

0.8

1

100.0

141,287

1.2

1

100.0

141,190

0.8

A106

B18

AEON TOWN Sukagawa
Subtotal

D01

Hotel MyStays Kanda

1

100.0

105,033

0.9

1

100.0

105,2810.6

D02

Hotel MyStays Asakusa

1

100.0

73,153

0.6

1

100.0

96,322

0.6- 38 -Name of property

40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

41st fiscal period(July 1, 2023 to December 31, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

D03

Hotel MyStays KyotoShijo

1

100.0

145,361

1.2

1

100.0

167,899

1.0

D04

MyStays Shin-Urayasu
Conference Center

1

100.0

192,551

1.6

1

100.0

244,704

1.5

D05

Hotel MyStays Maihama

1

100.0

185,369

1.5

1

100.0

246,837

1.5

D06

Hotel MyStays Premier
Dojima1

100.0

191,628

1.6

1

100.0

180,032

1.1

D07

Hotel MyStays NagoyaSakae

1

100.0

123,881

1.0

1

100.0

159,379

1.0

D08

Hotel MyStays SakaisujiHonmachi

1

100.0

85,256

0.7

1

100.0

77,6100.5

D09

Hotel MyStays Yokohama

1

100.0

138,735

1.2

1

100.0

153,901

0.9

D10

Hotel MyStays Nippori

1

100.0

60,274

0.5

1

100.0

67,4840.4

D11

Hotel MyStays FukuokaTenjin-Minami

1

100.0

120,847

1.0

1

100.0

163,288

1.0

D12

Flexstay Inn Iidabashi

1

100.0

42,417

0.4

1

100.0

55,9750.3

D13Hotel MyStays
Ueno Inaricho

1

100.0

37,005

0.3

1

100.0

45,951

0.3

D14

Flexstay Inn Shinagawa

1

100.0

42,681

0.4

1

100.0

38,5650.2

D15

Flexstay Inn Tokiwadai

1

100.0

43,771

0.4

1

100.0

54,6060.3

D16

Flexstay Inn Sugamo

1

100.0

31,501

0.3

1

100.0

36,8750.2

D17Hotel MyStays Otemae

1

100.0

65,947

0.5

1

100.0

71,2540.4

D18

Hotel MyStays Kiyosumi
Shirakawa

1

100.0

52,553

0.4

1

100.0

66,4970.4

D19

Flexstay Inn Nakanobu P1

1

100.0

15,601

0.1

1

100.0

14,4180.1

D20

Flexstay Inn Nakanobu P2

1

100.0

7,606

0.1

1

100.0

6,954

0.0

D21

APA Hotel
Yokohama-Kannai

1

100.0

252,122

2.1

1

100.0

233,921

1.4

D22

Hotel MyStays HakodateGoryokaku

1

100.0

86,416

0.7

1

100.0

125,107

0.7

D23

Flexstay Inn Shirogane

1

100.0

39,530

0.3

1

100.0

43,1640.3

D24

Hotel MyStays Haneda

1

100.0

177,272

1.5

1

100.0

178,663

1.1

D25

Hotel MyStays Kameido
P1

1

100.0

145,968

1.2

1

100.0

163,538

1.0

D26

Hotel MyStays Ueno
Iriyaguchi

1

100.0

72,101

0.6

1

100.0

92,2240.6

D27

Hotel MyStays Kameido
P2

1

100.0

95,077

0.8

1

100.0

106,1170.6

D28

Hotel MyStays Shimizu

1

100.0

68,431

0.6

1

100.0

81,4780.5- 39 -Name of property

40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

41st fiscal period(July 1, 2023 to December 31, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

D29

Super Hotel
Shinbashi/Karasumoriguc
hi

1

100.0

39,426

0.3

1

100.0

39,4260.2

D30

Flexstay Inn Higashi-Jujo

1

100.0

25,770

0.2

1

100.0

24,6810.1

D31

Hotel MyStays
Utsunomiya

1

100.0

74,916

0.6

1

100.0

99,9900.6

D32

Flexstay Inn KawasakiKaizuka

1

100.0

22,539

0.2

1

100.0

23,035

0.1

D33

Comfort Hotel Toyama

1

100.0

35,928

0.3

1

100.0

35,9280.2

D34

Flexstay Inn KawasakiOgawacho

1

100.0

22,538

0.2

1

100.0

18,971

0.1

D35

Flexstay Inn Ekoda

1

100.0

94,884

0.8

1

100.0

92,666

0.6

D36Super Hotel Tokyo-JR
Tachikawa Kitaguchi

1

100.0

31,787

0.3

1

100.0

31,7870.2

D37Super Hotel JR Uenoiriyaguchi

1

100.0

27,275

0.2

1

100.0

27,2750.2

D38

Hotel MyStays
Shinsaibashi

1

100.0

53,182

0.4

1

100.0

55,156

0.3

D39

Comfort Hotel Kurosaki

1

100.0

35,271

0.3

1

100.0

37,894

0.2

D40

Comfort Hotel Maebashi

2

100.0

44,171

0.4

2

100.0

44,171

0.3

D41

Comfort Hotel TsubameSanjo

2

100.0

34,949

0.3

2

100.0

34,9490.2

D42

Comfort Hotel Kitami

1

100.0

26,103

0.2

1

100.0

30,3000.2

D43

Hotel MyStays Gotanda
Station1

100.0

476,400

4.0

1

100.0

547,745

3.3

D44

Hotel Epinard Nasu

1

100.0

613,049

5.1

1

100.0

1,064,067

6.4

D45

Hotel MyStays Fukuoka
Tenjin1

100.0

203,299

1.7

1

100.0

251,594

1.5

D46

Hotel MyStays
Hamamatsucho

1

100.0

128,644

1.1

1

100.0

141,9630.9

D47

Hotel MyStays PremierKanazawa

1

100.0

195,631

1.6

1

100.0

250,639

1.5

D48

Takamatsu Tokyu REI
Hotel

2

95.8

101,089

0.8

2

95.8

100,059

0.6

D49

Hotel MyStays Premier
Hamamatsucho

1

100.0

267,483

2.2

1

100.0

311,193

1.9

D50

Hotel MyStays Shin Osaka
Conference Center

1

100.0

256,594

2.1

1

100.0

276,624

1.7

D51

Hotel MyStays Premier
Omori

1

100.0

282,439

2.4

1

100.0

354,021

2.1

D52

Kamenoi Hotel Beppu

1

100.0

396,271

3.3

1

100.0

404,812

2.4- 40 -Name of property

40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

41st fiscal period(July 1, 2023 to December 31, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

D53

Hotel MyStays Sapporo
Station1

100.0

175,489

1.5

1

100.0

266,550

1.6

D54

Hotel MyStays
Yokohama Kannai

1

100.0

141,550

1.2

1

100.0

152,5110.9

D55

Art Hotel Joetsu

1

100.0

66,070

0.6

1

100.0

75,7070.5

D56

Art Hotel Hirosaki City

1

100.0

132,281

1.1

1

100.0

168,320

1.0

D57

Hotel MyStays Oita

1

100.0

100,911

0.8

1

100.0

70,4540.4

D58

Hotel MyStays Gotanda

1

100.0

106,029

0.9

1

100.0

121,963

0.7

1

100.0

103,627

0.9

1

100.0

116,529

0.7

1

100.0

449,831

3.7

1

100.0

551,393

3.3

1

100.0

295,736

2.5

1

100.0

466,014

2.8

1

100.0

115,499

1.0

1

100.0

124,986

0.7

1

100.0

70,672

0.6

1

100.0

68,801

0.4

1

100.0

263,767

2.2

1

100.0

428,840

2.6

D59
D60
D61
D62
D63
D64

Hotel MyStays
Tachikawa
Hotel MyStays Premier
Akasaka
Hotel MyStays Premier
Sapporo Park
Hotel MyStays Ueno East
Hotel MyStays Midosuji
HonmachiHotel MyStays Sapporo
Aspen

D65

Art Hotel Ishigakijima

1

100.0

243,155

2.0

1

100.0

306,281

1.8

D66

Hotel MyStays Fuji
Onsen Resort

1

100.0

310,461

2.6

1

100.0

492,700

3.0

D67

Hotel Sonia Otaru

1

100.0

177,448

1.5

1

100.0

272,524

1.6

D68

Hotel MyStays Kanazawa
Castle1

100.0

89,987

0.7

1

100.0

112,164

0.7

D69

Art Hotel Niigata Station

1

100.0

174,400

1.5

1

100.0

225,183

1.3

D70

Hotel MyStays Nagoya
Nishiki

1

100.0

92,665

0.8

1

100.0

132,088

0.8

D71

Hotel Nord Otaru

1

100.0

118,006

1.0

1

100.0

176,787

1.1

D72

Hotel MyStays
Kagoshima Tenmonkan

2

100.0

165,150

1.4

2

100.0

133,442

0.8

D73

Art Hotel Asahikawa

1

100.0

88,990

0.7

1

100.0

259,916

1.6

1

100.0

90,529

0.8

1

100.0

118,838

0.7

1

100.0

40,821

0.3

1

100.0

75,872

0.5

1

100.0

26,415

0.2

1

100.0

61,861

0.4

1

100.0

19,080

0.2

1

100.0

37,568

0.2

1

100.0

38,510

0.3

1

100.0

43,348

0.3

1

100.0

23,906

0.2

1

100.0

32,837

0.2

1

100.0

55,222

0.5

1

100.0

39,829

0.2

D74
D75
D76
D77
D78
D79
D80

Hotel MyStays
Matsuyama
Hotel MyStays Sapporo
Susukino
Hotel MyStays Sapporo
Nakajima Park
Hotel MyStays Sapporo
Nakajima Park Annex
Flexstay Inn Sakuragicho
MyCUBE by MYSTAYS
Asakusa Kuramae
Hotel MyStays
Kagoshima Tenmonkan
Annex- 41 -Name of property

40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

41st fiscal period(July 1, 2023 to December 31, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1) thousand) (Note 2)(Note 2)
(Note 3)

D81

Hotel MyStays Nayoro

1

100.0

27,256

0.2

1

100.0

31,7450.2

D82

Hotel MyStays Premier
Narita1

100.0

237,341

2.0

1

100.0

283,896

1.7

D83

Art Hotel Morioka

1

100.0

114,824

1.0

1

100.0

127,167

0.8

-

-

-

-

1

100.0

1,253,530

7.5

-

-

-

-

1

100.0

454,998

2.7

D84
D85

Fusaki Beach Resort
Hotel & Villas
Tateshina Grand HotelTakinoyu

D86

Hotel MyStays Okayama

-

-

-

-

1

100.0

86,0790.5

D87

Hotel MyStays Aomori
Station

-

-

-

-

1

100.0

125,279

0.8

D88

Hotel MyStays Soga

-

-

-

-

1

100.0

89,340

0.5

D89

Tazawako Lake Resort &
Onsen

-

-

-

-

1

100.0

94,9880.6

Subtotal

87

99.9

10,343,397

86.2

93

100.0

15,057,360

90.2

Total

129

99.4

12,000,955

100.0

135

99.5

16,696,076

100.0(Note 1) “Occupancy rate” is calculated by dividing the leased area by leasable area.
(Note 2) “Occupancy rate” and “Ratio of rental revenue” are rounded to one decimal place.
(Note 3) “Rental revenue (during period)” indicates leasing operation revenues during the fiscal period foreach property and has been rounded down to the nearest thousand yen.

Name of property

40th fiscal period
41st fiscal period(January 1, 2023 to June 30, 2023)(July 1, 2023 to December 31, 2023)
Manageme
Manageme
Occupancy
Occupancy
nt contract Ratio ofnt contract Ratio of
Number ofrate
Number ofrate
revenue managemen
revenue managemen
tenants(at end oftenants(at end of(duringt contract(duringt contract(at end of
period)(at end of
period)period)revenueperiod)revenueperiod)(%)
period)
(%)
(JPY
(%)
(JPY
(%)
(unit)(Note 1)
(unit)(Note 1)
thousand) (Note 2)
thousand) (Note 2)(Note 2)
(Note 2)
(Note 3)(Note 3)

Westin Grand Cayman
D200 Seven Mile Beach Resort &
Spa

1

100.0

3,481,480

88.9

1

100.0

1,865,004

87.8

D201 Sunshine Suites Resort

1

100.0

432,545

11.1

1

100.0

258,038

12.2

Total

2

100.0

3,914,026

100.0

2

100.0

2,123,042

100.0(Note 1) “Occupancy rate” is calculated using the area subject to management contract.
(Note 2) “Occupancy rate” and “Ratio of management contract revenue” are rounded to one decimal place.
(Note 3) “Management contract revenue” is converted to JPY using the exchange rate at the time of thetransaction.

- 42 -

4

Asset Portfolio of Facilities Generating Renewable Energy, etc.
Not applicable

5

Asset Portfolio Including Rights to Operate Public Facilities, etc.
Not applicable

6

Asset Portfolio of Securities
The portfolio of the securities held by INV at the end of the Reporting Period is as below.
Name

Type

Valuation
Quantit Book value (JPY million) Fair value (JPY million) gainor lossy (units)
Unit price Amount Unit price Amount (JPY million)

Notes

Preferred equity
securities in
Preferred equity 178,458
Kingdom Special
securities
Purpose Company-

17,856-

21,102

1)
3,245 (Note(Note 2)

Total-

17,856-

21,102

3,245(Note 1) Book value of the preferred equity securities that is classified as investment in affiliates indicatesthe acquisition cost.
(Note 2) INV owns 178,458 units of preferred equity securities issued by Kingdom Special Purpose
Company (equivalent to 49.0% of preferred equity securities issued and outstanding after theissuance of the said preferred equity securities), with the Sheraton Grande Tokyo Bay Hotel as anunderlying asset.

7

Status of Contract Amount and Fair Value of Specified Transaction
As of the end of the Reporting Period, the contract amount and fair value of the outstanding transaction under
the specified transaction account of INV are as follows.
(Unit: JPY thousand)Contract amount(Note 1)
Fair value
Category
Transaction type, etc.
(Note 2)
Amounts
due
after one year
Foreign Exchange Forward,
4,397,800
989,200-425,438
Short USD
Non-market
Interest rate swap
transaction
130,282,250
101,297,250-221,054
Receive floating 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
Foreign Exchange Forward: Indicates fair values of option fees, etc. presented by the correspondent
financial institutions.
Interest rate swap: Estimated based on the price, etc. presented by the correspondent financial
institutions.

8

Status of Other Assets
Real estate and trust beneficiary interests in real estate are listed together in “3 Asset Portfolio of Real Estate,etc.” above. As of the end of the Reporting Period, there are no investments in specified assets that are
significant investment targets for INV outside of 3 and 6 above.

- 43 -

9

Assets Owned Outside of Japan or the Region
Assets owned outside of Japan or the region held by INV at the end of the Reporting Period are as below.
Appraisal value as of the end of
No. ofAmount held
the Reporting Period (JPY million) (Note 2)(JPY million)
Country nameproperties
Percentage of(Note 1)(properties)
total assets (%)

Japan

480,823569,192

88.0

132

The Cayman Islands

32,814

77,694

12.0

2

Total

513,638

646,887

100.0

134

(Note 1) “Amount held” is from the balance sheet (book value after depreciation for real estate and trust
beneficiary interest in real estate; and book value for preferred equity securities with real estate as
underlying assets) as of the end of the Reporting Period.
(Note 2) “Appraisal value as of the end of the Reporting Period” indicates the real estate appraisal value as ofthe end of the Reporting Period, or the research value stated in the real estate research report and theappraisal value of investment securities. “Appraisal value as of the end of the Reporting Period” forpreferred equity securities which INV holds in Japan indicates acquisition cost since their fair value isdeemed extremely difficult to value. “Appraisal value as of the end of the Reporting Period” for assets
which INV holds in the Cayman Islands indicates the amount converted to JPY using the exchange
rate of USD 1 = JPY 141.83, which is the exchange rate on the closing date of the fiscal period (December
31, 2023).

- 44 -

Capital Expenditures for Properties Held by INV

1Schedule 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-related assets owned by INV is as follows.
Estimated cost (JPY thousand)Name of property

Location

APA Hotel
D21
Yokohama-Kannai

Yokohamashi,
Kanagawa

Westin Grand
Cayman Seven
D200
Mile Beach Resort& SPA
Westin Grand
Cayman Seven
D200
Mile Beach Resort
& SPA

Grand
Cayman,CaymanIslands
Grand
Cayman,CaymanIslands

MyStays ShinD04 Urayasu
Conference Center

Urayasu-shi,
Chiba

D53

2

Hotel MyStays
Sapporo Station

Sapporo-shi,
Hokkaido

PurposeScheduled time of
implementation

Total

Payment for
Advancethe Reporting
payments
PeriodRenewal of air
conditioning
facility of entire
building

From January 2024
To June 2024

355,000--

Renewal of guest
room furniture

From January 2024
To June 2024

70,593--

66,328--64,000--60,000--

Renewal of air
From January 2024
conditioning
facility of guest
To June 2024
rooms
Renewal of gas heatpump facility (1F From January 2024
and 2F) and total
To June 2024
heat exchangers
Renewal of gas heat From January 2024
pump facility (twoTo June 2024
floors)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 1,796,357 thousand, andtogether with JPY 29,932 thousand in repair costs included in this fiscal period’s expenses, construction work
totaling JPY 1,826,290 thousand was implemented.
Name of property

Location

Hotel MyStays
D22 HakodateGoryokaku

Payment(JPY thousand)PurposeTime of implementation

Hakodate-shi,
Hokkaido

Renovation of exterior
wall

From July 2023
To December 2023

85,000Art Hotel
Hirosaki City

Hirosaki-shi,
AomoriRenovation of exterior
wall

From July 2023
To December 2023

59,660

D83 Art Hotel Morioka

Morioka-shi,
Iwate

Renovation of multistory car parking

From July 2023
To December 2023

56,500A38 Route Tachikawa

Tachikawa-shi,Tokyo

Renovation of exterior
wall
Renewal of air
conditioning /water
heating facility andenergy saving facility

From July 2023
To December 2023

53,642

From July 2023
To December 2023

53,320

D56

D64

Hotel MyStays
Sapporo Aspen

Sapporo-shi,
Hokkaido

1,488,234

Other construction

1,796,357

Total- 45 -

3 Reserved Funds for Long-Term Maintenance Plan (repair reserves)
INV has reserved funds from the cash flow of the fiscal period, as shown below, towards largescale maintenance repairs in the medium- to long-term in accordance with the long-term
maintenance plan for each property.

Fiscal period(Unit: JPY thousand)
37th
38th
39th
40th
41st
fiscal period
fiscal period
fiscal period
fiscal period
fiscal period
From July 1, 2021 From January 1, From July 1, 2022 From January 1, From July 1, 2023
to December 31, 2022 to June 30, to December 31, 2023 to June 30, to December 31,
2021
2022
2022
2023
2023

Reserved funds at
2,749,724
2,791,578
3,025,792
3,096,949
3,457,311
beginning of period
Amount reserved
1,152,988
645,507
737,881
968,000
1,027,418(Note 1)
Amount reversed
1,168,731
603,652
503,667
896,843
667,056(Note 1)
Amount carried over for
3,441,568
2,791,578
3,025,792
3,096,949
3,457,311
next fiscal period(Note 1) The amount reserved for the relevant fiscal period includes the reserves for acquired properties,
and the amount reversed includes the reserves for sold properties.

- 46 -

Overview of Expenses and Liabilities

1

Statement of Operating Expenses
Item(a) Asset management fees(b) Asset custody fees(c) Administrative services fees(d) Directors’ compensation(e) Other
Total

2(JPY thousand)41st fiscal period
July 1, 2023 to December 31, 2023

40th fiscal period
January 1, 2023 to June 30, 2023
300,000

300,000

24,73627,267

39,162

48,537

4,800

5,200

51,871

17,761

420,570

398,767

Borrowing Conditions
Borrowing conditions by financial institution at the end of the Reporting Period are as below.

Type

LenderMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Ogaki Kyoritsu
Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

Balance at
beginning of
Borrowing Reportingdate
Period(JPY
thousand)
11,643,000

Jul. 19,
2022

Sep. 14,2022

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Short-term Banking Corporation
loans
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andBanking Co., Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited

Sep. 26,
2022

Sep. 27,
2022

Balance at
end ofReporting
Period(JPY
thousand)Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)-

11,567,000-

9,203,000-

4,450,000-

5,120,000-

5,513,000-

666,000-

1,335,000-

187,000-

3,000,000-

3,287,000-

2,600,000-

3,287,000-

1,000,000-

667,000-

833,000-

500,000-

445,000-

590,000-

2,850,000-

2,133,000-

2,521,500-

1,328,500-

1,244,000-

500,000-

442,000-- 47 -

Notes

0.295

Jul. 19,2023(Note 3)

Unsecured(Note 2) / with noguarantee

0.295

Sep. 14,2023(Note 3)

Unsecured(Note 2) / with noguarantee

0.295

Sep. 26,
2023(Note 3)

Unsecured(Note 2) / with noguarantee

0.295

Sep. 26,
2023(Note 3)

Unsecured(Note 2) / with noguarantee

Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Bank of Fukuoka,
Ltd.
Citibank, N.A., Tokyo
Branch

500,000-

500,000-

500,000-

355,000-

355,000-

1,500,000-

333,000-

300,000-

1,256,000

-

0.295

4,321,000

-

0.306

Mizuho Bank, Ltd.

1,656,400

1,656,400

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andBanking Co., Limited

2,451,800

2,451,800

2,318,200

2,318,200

1,312,600

1,312,600

1,500,000

1,500,000

169,000

169,000

300,000

300,000

600,000

600,000

100,000

100,000

1,700,000

1,700,000

0.315

6,800,000

6,800,000

0.315

Mizuho Bank, Ltd.

333,000

333,000

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.
The Bank of Fukuoka,
Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited

148,000

148,000

254,000

254,000

281,000

281,000

100,000

100,000

700,000

700,000

1,845,000

1,845,000

858,000

858,000

85,00085,000109,000

109,000

1,000,000

1,000,000-

5,513,000-

1,335,000-

960,400-

742,000-

728,900-

654,700-

1,665,000-

300,000

111,453,000

36,520,000

Mizuho Bank, Ltd.

Short-term MUFG Bank, Ltd.
loans
Sumitomo Mitsui Trust
Bank, Limited

SBI Shinsei Bank, Limited
SBI Shinsei Bank, Limited
Resona Bank, Limited

Oct. 13,2022

Sep. 27,2022
Nov. 29,2022

Jan. 16,2023

Jan. 24,
2023
Jan. 24,
2023

Mar. 14,2023

Mar. 16,2023
Jun. 27,
2023
Jul. 19,2023

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited
The Bank of Fukuoka,
Ltd.
SubtotalAug. 1,
2023

Sep. 26,2023- 48 -

0.295

0.315

Sep. 26,
2023

Sep. 26,
2023
Nov. 29,2023

Jan. 16,2024

Jan. 24,
2024
Jan. 24,2024(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

Unsecured(Note 2) / with noguarantee

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee

Unsecured(Note 2) / with noguarantee

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee

0.315

Mar. 14,2024(Note 3)

Unsecured(Note 2) / with noguarantee

0.315

Mar. 14,2024(Note 3)

Unsecured(Note 2) / with noguarantee

0.315

Jun. 27,2024(Note 3)

0.265

Jul. 16,2024(Note 3)0.265

Aug. 1,
2024(Note 3)

Unsecured(Note 2) / with noguarantee

0.265

Jul. 16,2024(Note 3)

Unsecured(Note 2) / with noguarantee

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee

Type

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
SBI Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
Long-term
Resona Bank, Limited
loans(Note 4) The Nomura Trust andBanking Co., Limited
AEON Bank, Ltd.

Balance at
beginning of
Borrowing Reporting
Perioddate(JPY
thousand)
1,250,000
Oct. 13,2017

Oct. 13,
2017

Jul. 17,2018

Sep. 26,
2018

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

Mar. 29,2019

Kiraboshi Bank, Ltd.

Mar. 29,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited

Jul. 16,
2019

Resona Bank, Limited

Balance at
end ofReporting
Period(JPY
thousand)-

1,065,000-

1,250,000-

1,250,000

1,250,000

1,060,000

1,060,000

1,250,000

1,250,000

2,442,000-

2,220,000-

1,997,000-

1,110,000-

1,000,000-

890,000-

3,287,500-

3,287,500-

2,600,000-

1,000,000-

833,000-

667,000-

500,000-

445,000-

166,000-

333,000-

1,000,000

1,000,000

921,000

921,000

480,000

480,000

961,000

961,000

571,400

571,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

600,000

600,000

Mizuho Bank, Ltd.

1,171,400

1,171,400

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

Jul. 16,2019- 49 -

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Notes

0.765

Oct. 13,2023(Note 3)

Unsecured(Note 2) / with noguarantee

0.865

Oct. 11,2024(Note 3)

Unsecured(Note 2) / with noguarantee

0.545Jul. 14,2023(Note 3)

Unsecured(Note 2) / with noguarantee

0.545

Sep. 26,
2023(Note 3)

Unsecured(Note 2) / with noguarantee

0.594

Mar. 29,2024(Note 3)

Unsecured(Note 2) / with noguarantee

0.865

Mar. 29,2029(Note 3)

Unsecured(Note 2) / with noguarantee

0.499

Jan. 16,2024(Note 3)

Unsecured(Note 2) / with noguarantee

0.563

Jul. 16,2024(Note 3)

Unsecured(Note 2) / with noguarantee

Type

LenderMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited

Balance at
beginning of
Borrowing Reportingdate
Period(JPY
thousand)
2,171,400

Balance at
end ofReporting
Period(JPY
thousand)
2,171,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

Jul. 16,2019

200,000

200,000

2,170,400

2,170,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

200,000

200,000

712,000

712,000

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

237,000

237,000

Mizuho Bank, Ltd.

712,000

712,000

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd..,

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

1,212,000

1,212,000

986,000

986,000

986,000

986,000

684,000

684,000

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited

Jul. 16,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andLong-term Banking Co., Limited
loans(Note 4) Aozora Bank, Ltd.

Jul. 19,2019

Jul. 19,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Jul. 19,2019

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000- 50 -

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Notes

0.615

Jan. 16,2025(Note 3)

Unsecured(Note 2) / with noguarantee

0.765Jul. 16,2025(Note 3)

Unsecured(Note 2) / with noguarantee

0.525

Jan. 16,
2024

Unsecured(Note 3) (Note 2) / with noguarantee

0.580Jul. 16,
2024

Unsecured(Note 3) (Note 2) / with noguarantee

0.615

Jan. 16,2025(Note 3)

Unsecured(Note 2) / with noguarantee

Type

LenderBorrowingdate

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Balance atBalance at
Average
beginning of
end ofinterest
Repayment Repayment
Reporting
Reportingrate
Purposedate
methodPeriodPeriod(%)(JPY thousand) (JPY thousand) (Note 1)
1,211,000
1,211,000

Notes

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

700,000

700,000

2,882,000

2,882,000

662,000

662,000

1,700,000

1,700,000

0.486

1,000,000

1,000,000

0.615

1,000,000

1,000,000

0.765

Apr. 15,2024
Apr. 15,2025
Oct. 15,2025

3,050,000

3,050,000

961,000

961,000

0.643

Jan. 6,2025(Note 3)

Unsecured(Note 2) / with noguarantee

The Kiyo Bank

480,000

480,000

Mizuho Bank, Ltd.

634,000

634,000

0.487

Mar. 16,2025(Note 3)

Unsecured(Note 2) / with noguarantee

0.565

Mar. 16,2025(Note 3)

Unsecured(Note 2) / with noguarantee(Note 3)

Tokyo Star Bank, Limited
Mizuho Bank, Ltd.
San ju San Bank,Ltd.
San ju San Bank,Ltd.
San ju San Bank,Ltd.
The Nishi-Nippon City
Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Momiji Bank,Ltd.

Resona Bank, Limited
Long-term Development Bank ofloansJapan, Inc.
(Note 4) The Bank of Fukuoka,
Ltd.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.
The Yamaguchi Bank,
Ltd.
Mizuho Bank, Ltd.

Jul. 19,2019

Jul. 22,2019
Aug. 28,2019
Oct. 15,2019
Oct. 15,2019
Oct. 15,
2019
Jan. 6,2020

Mar. 16,2020

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Resona Bank, Limited
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Mar. 30,2020

300,000

300,000

1,000,000

1,000,000

333,000

333,000

333,000

333,000

200,000

200,000

411,000

411,000

582,000

582,000

628,000

628,000

1,090,000

1,090,000

570,000

570,000

500,000

500,000

270,000

270,000

0.765

Jul. 16,2025(Note 3)0.765

Jul. 16,2025(Note 3)

0.462

Jan. 16,2024(Note 3)(Note 3)(Note 3)(Note 3)1,000,000

1,000,000

The Shizuoka Bank, Ltd.

270,000

270,000

The Kagawa Bank, Ltd.
The Yamaguchi Bank,Ltd.
The Chukyo Bank, Ltd.

500,000

500,000

550,000

550,000

961,000

961,000

1,582,000

1,582,000

0.415

600,000

600,000

0.415

Jul. 20,2024
Jul. 20,2025

1,190,000

1,190,000

0.565

Oct. 13,2027

1,550,000

1,550,000

0.315 Jan 24, 2024 (Note 3)

Tokyo Star Bank, Limited
Tokyo Star Bank, Limited
Tokyo Star Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited

Jul. 20,2021
Jul. 20,2022
Oct. 13,2022
Jan. 6,2023- 51 -(Note 3)(Note 3)

Unsecured(Note 2) / with noguarantee

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee

Type

LenderMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
MUFG Bank, Ltd.
The Chiba Bank, Ltd.
(Note 5)Development Bank ofJapan, Inc.

Balance atBalance at
Averageofend ofinterest Repayment Repayment
Borrowing beginning
Reporting
Reporting
rate
date
date
method Purpose
PeriodPeriod(%)(JPY thousand) (JPY thousand) (Note 1)
3,001,500
3,001,500
1,326,000

1,326,000

2,293,500

2,293,500

900,000

900,000

Mar. 16,2023

765,000

765,000

981,000

981,000

Jun 19,2023

1,000,000

MUFG Bank, Ltd.

Jun 27,2023

SBI Shinsei Bank, Limited

Jul. 14,2023

Unsecured(Note 2) / with noguarantee

0.712

Mar. 14,2026(Note 3)0.707

Mar. 14,2026(Note 3)1,000,000

0.380

Jun 19,2026(Note 3)500,000

500,000

0.380

Jun 27,2026(Note 3)-

1,110,000

0.265

Jul. 16,2024(Note 3)

Mizuho Bank, Ltd.

-

1,221,000

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

-

1,110,000-

998,500

0.691

Jul. 16,2026(Note 3)

Unsecured(Note 2) / with noguarantee-

445,000-

5,821,500-

5,783,500-

4,601,500-

2,225,000

0.696

Jul. 16,2026(Note 3)

Unsecured(Note 2) / with noguarantee-

333,000-

93,500-1,221,000-

1,110,000-

998,500

0.580

Jul. 14,2028(Note 3)

Unsecured(Note 2) / with noguarantee-

445,000-

5,821,500-

5,783,500-

4,601,500-

2,225,000

0.580

Jul. 14,2028(Note 3)

Unsecured(Note 2) / with noguarantee-

333,000

0.365

Jul. 16,2026(Note 3)

Unsecured(Note 2) / with noguarantee

0.365

Jul. 16,2026(Note 3)

Unsecured(Note 2) / with noguarantee

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofLong-term Japan, Inc.
The Ogaki Kyoritsu
loans(Note 4) Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
The Ogaki Kyoritsu
Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.

Mar. 14,
2023

Notes

Jul. 14,2023

Jul. 19,2023

Jul. 14,2023

Jul. 19,2023

Jul. 14,2023

Jul. 19,2023-

93,500-296,800-

227,700-

224,100-

203,000-

1,519,600-

1,165,900-

1,147,300-

1,039,500-

296,100- 52 -

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee

Type

LenderMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Tokyo Star Bank, Limited

Balance atBalance at
Averageofend ofinterest Repayment Repayment
Borrowing beginning
Reporting
Reporting
rate
date
date
method Purpose
PeriodPeriod(%)(JPY thousand) (JPY thousand) (Note 1)
2,454,000

Aug. 1,2023-

1,784,600-

1,784,600-

1,586,300-

793,100

Aozora Bank, Ltd.

-

793,100

Mizuho Bank, Ltd.

-3,681,000

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
Tokyo Star Bank, Limited-

2,677,000-

2,677,000-

2,379,500-

2,974,400-

1,189,700-

1,189,700-

806,000-

3,000,000-

6,947,000-

5,133,100-

6,717,200-

2,679,950-

2,100,000-

756,000-

875,000-

875,000

Aozora Bank, Ltd.
The Ogaki Kyoritsu
Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited

Aug. 1,
2023

Sep. 14,2023

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo MitsuiLong-term Banking Corporation
loans
Sumitomo Mitsui Trust(Note 4) Bank, Limited
Development Bank ofJapan, Inc.
The Nomura Trust andBanking Co., Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited

Sep. 26,
2023

Oct. 13,
2023

Sep. 26,
2023

Oct. 13,2023-

745,500-

2,977,500-

2,199,900-

2,878,800-

1,148,550-

900,000-

375,000-

375,000-

319,500

Notes

0.691%

Jul. 16,2026(Note 3)

Unsecured(Note 2) / with noguarantee

1.069

Jul. 14,2028(Note 3)

Unsecured(Note 2) / with noguarantee

0.879

Jul. 16,2027(Note 3)

Unsecured(Note 2) / with noguarantee

0.894Jul. 16,2027(Note 3)

Unsecured(Note 2) / with noguarantee

0.879

Jul. 16,2027(Note 3)

Unsecured(Note 2) / with noguarantee

0.580Jul. 16,2028(Note 3)

Unsecured(Note 2) / with noguarantee

0.580Jul. 16,2028(Note 3)

Unsecured(Note 2) / with noguarantee

SBI Shinsei Bank, Limited

Sep. 26,2023-

3,197,000

0.691

Jul. 16,2026(Note 3)

Tokyo Star Bank, Limited

Sep. 26,2023-

1,900,000

1.054

Jul. 14,2028(Note 3)

Mizuho Bank, Ltd.

Nov. 29,2023-

4,321,000

0.680

Nov. 29,2029(Note 3)

Subtotal

114,337,000

217,680,000

Total

225,790,000

254,200,000

Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee
Unsecured(Note 2) / with noguarantee(Note 1) Average interest rate shows the interest rate for each loan agreement as of the end of the fiscal
period, rounded to three decimal places. In regards to borrowings which interest rate swap
transactions are entered into for the purpose of avoiding risk from interest rate fluctuation, interest
rates reflecting the interest rate swap are shown. In regards to borrowings repaid during theReporting Period, the interest rate for each loan agreement as of the repayment date rounded tothree decimal places is shown.

- 53 -

(Note 2) The funds raised through borrowings are mainly used to acquire trust beneficiary interests in realestate and to repay the borrowings.
(Note 3) The balance at the end of the period will be repaid in full on the repayment date.
(Note 4) Long-term loans includes current portion of long-term loans payable.
(Note 5) The existing loan transferred from Sumitomo Mitsui Trust Bank, Limited to The Chiba Bank, Ltd.
on September 29, 2023.

3

Investment Corporation Bonds
Status of investment corporation bonds as of the end of the Reporting Period is as follows.
Bond Series

Second Series
Unsecured
Investment
Corporation Bonds(Note 1)
Third Series
Unsecured
Investment
Corporation Bonds(Note 1)Forth Series
Unsecured
Investment
Corporation Bonds(Note 1)Fifth Series
Unsecured
Investment
Corporation Bonds(Note 1)
Sixth Series
Unsecured
Investment
Corporation Bonds(Note 1)Seventh Series
Unsecured
Investment
Corporation Bonds(Note 1)
Eighth Series
Unsecured
Investment
Corporation Bonds(Note 1)
Ninth Series
Unsecured
Investment
Corporation Bonds(Note 1)Tenth Series
Unsecured
Investment
Corporation Bonds(Note 1)
Total

Issue Date

May 25,2018

October 12,
2018

October 28,
2019

October 28,
2019

March
13,2020

May 25,2023

May 25,2023

September
21, 2023

December
14, 2023

Balance at the Balance at theInterest
beginning of
end of the
Redemptio Redemption
Rate
the period
periodn Datemethod(%)(JPY thousand) (JPY thousand)

1,000,000

1,000,000

0.800

2,000,000

-

0.550

1,000,000

1,000,000

0.480

2,000,000

2,000,000

0.900

1,200,000

1,200,000

0.850

5,000,000

5,000,000

1.000

1,200,000

1,200,000

1.200

-

1,700,000

1.200

-

1,800,000

1.297

13,400,000

14,900,000－

May 25,2028

October 12,
2023

October 28,
2024

October 26,
2029

March 13,2030

May 25,2026

May 25,2028

September
21, 2028

December
14, 2028－

Use offunds(Note 2)

(Note 3)(Note 2)

(Note 4)(Note 2)

(Note 5)(Note 2)

(Note 5)(Note 2)

(Note 4)(Note 2)

(Note 6)(Note 2)

(Note 6)(Note 2)

(Note 4)(Note 2)

(Note 4)－－

Security/
Guaranty

Unsecured/ with no
guarantee－(Note 1) This is with pari passu conditions among specified corporate bonds.
(Note 2) The Investment Corporation Bonds may be purchased and cancelled at any time after the payment- 54 -

(Note 3)(Note 4)(Note 5)(Note 6)4

date, except for the case where the laws and regulations or the depository otherwise stipulates.
The funds will be used to acquire trust beneficiary interest in real estate.
The funds will be used to repay borrowings.
The funds will be used in strategic capital expenditure.
The funds will be used to redeem investment corporation bonds and repay borrowings.

Short-Term Investment Corporation Bonds
Not applicable

5

Investment Unit Options
Not applicable

Acquisitions and Sales for the Reporting Period
1Acquisitions and Sales of Real Estate, Asset-Backed Securities, Infrastructure Assets andInfrastructure Related-Assets
Acquisition

Type of asset
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Name of property

Acquisition
date

Sale

Acquisition price(JPY million)(Note 1)

Sales date

Sales price(JPY million)

Book value(JPY million)

Gain/loss
on sales(JPY million)

D84

Fusaki Beach Resort
Hotel & Villas

Aug. 1,2023

40,293

－

－

－

－

D85

Tateshina Grand
Hotel Takinoyu

Aug. 1,
2023

8,365

－

－

－

－

D86

Hotel MyStays
Okayama

Aug. 1,
2023

2,613

－

－

－

－

D87

Hotel MyStays
Aomori Station

Aug. 1,
2023

2,445

－

－

－

－

D88 Hotel MyStays Soga

Aug. 1,
2023

2,039

－

－

－

－

Tazawako Lake
Resort & Onsen

Aug. 1,
2023

1,475

－

－

－

－

57,230

－

D89

Total

(Note 1) Acquisition prices do not include adjustments for property taxes or city planning taxes, or nationalor local consumption taxes.

2

Acquisitions and Sales of Other Assets
Assets other than those described above were mostly bank deposits or bank deposits in trust.

- 55 -

3

Transaction Price Verification of Specified Assets

Real Estate Transactions
Acquisitionor saleName of property

Acquisition

D84

Fusaki Beach Resort
Hotel & Villas

Acquisition

D85

Tateshina Grand
Hotel Takinoyu

Acquisition

D86

Hotel MyStays
OkayamaAcquisition

D87

Hotel MyStays
Aomori Station

Acquisition

D88 Hotel MyStays Soga

Acquisition

D89

Tazawako Lake
Resort & Onsen

Sales price(JPY
million)(Note 1)

Appraisal
value
(JPY
million)Aug. 1,2023

40,293

Aug. 1,
2023

Category of Transaction
specified asset
dateReal estate
Trustbeneficiaryinterest
Real estate
Trustbeneficiaryinterest
Real estate
Trustbeneficiaryinterest
Real estate
Trustbeneficiaryinterest
Real estate
Trustbeneficiaryinterest
Real estate
Trustbeneficiaryinterest

Appraiser

Appraisal
date

40,700Japan Real Estate
InstituteJune 1,
2023

8,365

8,450

Tanizawa Sogo
Appraisal Co., Ltd.

June 1,
2023

Aug. 1,
2023

2,613

2,640

Japan Real Estate
InstituteJune 1,
2023

Aug. 1,
2023

2,445

2,470

JLL Morii
Valuation &Advisory K.K.

June 1,
2023

Aug. 1,
2023

2,039

2,060

Tanizawa Sogo
Appraisal Co., Ltd.

June 1,
2023

Aug. 1,
2023

1,475

1,490

Daiwa Real EstateAppraisal Co., Ltd.

June 1,
2023(Note 1) Acquisition price or sales price do not include various costs (brokerage commissions, taxes andother public dues) required for acquisition of the property and is the purchase price indicated in
the trust beneficiary interest purchase agreement.
(Note 2) The real estate appraisal described above is conducted by applying “Section 3: appraisals
concerning prices of real estate subject to securitization” of “Real Estate Appraisal Standard.”

4 Transactions with Interested Parties(1) Transactions
Not applicable(2) Commissions Paid
Not applicable

5

Transactions between CIM and Its Other Businesses
As CIM does not engage in any other business, such as the type I financial instruments business and the typeII financial instruments business, the building lots and buildings transaction business, or the real estate
specified joint enterprise, there are no applicable transactions.

- 56 -

Financial Condition
1

Assets, Liabilities, Principal, and Profit and Loss
Please refer to “II. Balance Sheet,” “III. Statement of Income and Retained Earnings,” “IV. Statement of
Changes in Net Assets,” “V. Notes to Financial Statements” and “VI. Statement of Cash Distribution” later inthis document.
The information of previous fiscal period in Balance Sheet, Statement of Income and Retained Earnings,
Statement of Changes in Net Assets, Notes to Financial Statements, and Statement of Cash Distribution is forreference only. It is not subject to audit by an auditor pursuant to the Article 130 of the Investment Trust Act
for the Reporting Period.

2

Changes in the Calculation Method of Depreciation
Not applicable

3

Changes in the Evaluation Method of Real Estate and Infrastructure Assets, etc.
Not applicable4

Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company
Not applicable- 57 -

Other1
Notice(1) General Meeting of Unitholders
INV’s General Meeting of Unitholders was held on December 21, 2023.
The summary of the matters approved at the General Meeting of Unitholders are as follows.
AgendaSummary
1.

2.

In the course of diversifying its lenders, the Investment
Corporation may take out loans from Shinkin (credit unions)banks in the future. In such case, the Investment Corporation
will be required to make equity investments in accordance with
the Shinkin Bank Act (Act No. 238 of 1951, as amended) andtherefore, equity as stipulated in the Shinkin Bank Act were to
be added to the Investment Corporation’s scope of asset
management.
With the consent of Consonant Investment Management Co.,
Ltd, the asset management company (the “Asset Manager”), theasset management fees for the period from January 2013 to
December 2023 have been reduced. The Investment
Corporation has further obtained the consent of the AssetManager to reduce the amount of asset management fees for theperiod from January 2024 to December 2024 to an amountwhich is lower than the amount that would be applicable if such
reduction were not made, but higher than the amount that wasapplied for the period from January 2023 to December 2023 sothat the amount of asset management fees are appropriate
considering the expansion of the Investment Corporation’s
asset size, profit level and other factors resulting from its
internal and external growth. Accordingly, the Investment
Corporation will amend the standards concerning the amountand payment of the asset management fees for the period fromJanuary 2024 to December 2024.

Proposal No. 1

Partial Amendment to
Articles of Incorporation

Proposal No. 2

Appointment of One (1)Executive Director

Naoki Fukuda was appointed.

Proposal No. 3

Appointment of One (1)Substitute Executive
Director

Naoto Ichiki was appointed.

Proposal No. 4

Appointment of Two (2)Supervisory Directors

Hiroyuki Fujimoto and Marika Nagasawa were appointed.

- 58 -

(2) Board of Directors of Investment Corporation
Of the execution and amendment of the agreement approved by INV’s Board of Directors in the Reporting
Period, principal summary is as follows.
Approval dateJuly 19, 2023

Item

Summary

Conclusion of theunderwriting
agreement related tothe issuance of new
investment units, etc.

The Board of Directors of INV approved that INV would entrust
underwriters (Note 1) with the service related to the issuance of
new investment units through public offering and secondaryoffering of investment units, which were approved at themeeting of the Board of Directors of INV held on July 19, 2023.

Board of Directors passed a comprehensive resolution on
issuance of investment corporation bonds with a maximum total
Comprehensive
issue amount of JPY 6.4 billion and an issuance period from
September 12,
resolution on issuance September 21, 2023 to October 31, 2023; and entrustment of2023
of investment
administrative duties concerning offering of investment
corporation bonds
corporation bonds and general administrative duties as an
issuing agent, fiscal agent, paying agent, etc. to a prescribed
general administrative agent.
Board of Directors passed a comprehensive resolution on
issuance of investment corporation bonds with a maximum total
Comprehensive
issue amount of JPY 5.0 billion and an issuance period from
November 27,
resolution on issuance November 28, 2023 to December 31, 2023; and entrustment of2023
of investment
administrative duties concerning offering of investment
corporation bonds
corporation bonds and general administrative duties as an
issuing agent, fiscal agent, paying agent, etc. to a prescribed
general administrative agent.
(Note 1) The underwriters for the domestic public offering are Mizuho Securities Co., Ltd., SMBC Nikko
Securities Inc., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Nomura Securities Co., Ltd.
The underwriters for the global offering mainly in the U.S., Europe and Asia are Morgan Stanley &Co. International plc, SMBC Nikko Capital Markets Limited, Mizuho International plc, andNomura International plc.

2

Disclosure of Companies Owning Real Estate Overseas
Not applicable

3

Disclosure of Real Estate Owned by Companies Owning Real Estate Overseas
Not applicable

4

Other
Unless there are specific statements to the contrary, monetary figures are rounded down to the nearest unit
and percentages are rounded off for unspecified values.

- 59 -

II.

Balance Sheet(Unit: JPY thousand)(Reference)
Fiscal period ended
June 30, 2023
(as of June 30, 2023)

AssetsCurrent assets:
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Consumption tax receivable
Other
Total current assets
Non-current assets:
Property and equipment
Buildings at cost
Accumulated depreciation
Buildings, net
Buildings and accompanying facilities, at cost
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, at cost
Buildings in trust, at cost
Accumulated depreciation
Buildings in trust, net
Buildings and accompanying facilities in trust, atcost
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
Construction in progress in trust
Total property and equipment, net
Intangible assets
Leasehold rights
Leasehold rights in trust
Total intangible assets
Investment and other assets
Investment securities
Guarantee deposits
Long-term prepaid expenses
Derivatives assets
OthersTotal investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets- 60 -

Fiscal period ended
December 31, 2023
(as of December 31, 2023)

18,377,030
10,464,171
5,750,301
542,947
821,11715
397
35,955,980

21,956,120
12,936,394
4,834,083
1,976,184
1,143,417
21
2,615,543
12,63645,474,401

19,479,753-1,807,607
17,672,145
5,311,502-1,260,171
4,051,330
1,458
-216
1,242
1,282,552-474,151
808,401
720,331
159,247,341-28,861,119
130,386,221

19,484,168-2,026,919
17,457,249
5,311,876-1,413,713
3,898,162
1,458
-249
1,209
1,365,816-543,189
822,627754,330
184,088,728-31,362,709
152,726,019

33,186,709

40,943,104-13,472,710-14,493,714

19,713,998

26,449,389

266,849-115,188
151,661
3,370,722-1,995,319
1,375,402
241,319,447
25,767416,225,951

281,528-121,916
159,6113,767,991-2,200,871
1,567,120
264,666,397
198,056
468,700,175

10,637,811
14,380,825
25,018,637

10,637,811
17,396,611
28,034,422

17,856,387
1,372,719
290,589
9,306
22,667
19,551,670
460,796,259

17,856,387
1,382,359
1,825,986
7,877
22,66721,095,278
517,829,876

67,69067,69088,78388,783

(Unit: JPY thousand)(Reference)
Fiscal period ended
June 30, 2023
(as of June 30, 2023)
496,819,930

Total assets(Reference)
Fiscal period ended
June 30, 2023
(as of June 30, 2023)

Fiscal period ended
December 31, 2023
(as of December 31, 2023)
563,393,061(Unit: JPY thousand)Fiscal period ended
December 31, 2023
(as of December 31, 2023)

Liabilities
Current liabilities:
Accounts payable
Short-term loans payable
Current portion of investment corporation
bonds
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable

599,562

800,491

111,453,000

36,520,000

2,000,000

1,000,000

46,139,000

36,787,000

3,514

6,321

247,903281,210605

605

Consumption taxes payable

422,723-

Advances received

305,914305,676

Deposits received

11,663

55,107

161,183,886

75,756,412

Total current liabilities
Non-current liabilities:
Investment corporation bonds

11,400,000

13,900,000

Long-term loans payable

68,198,000

180,893,000

Tenant leasehold and security deposits in trust

1,484,328

1,491,055

Derivatives liabilities

495,525

654,369

Asset retirement obligations

34,097393,202

Total non-current liabilities

81,611,951

197,331,627

242,795,838

273,088,040

235,701,512

270,101,249

6,264,432

6,264,432-6,130-6,130-5,524,006-5,524,006-5,530,137-5,530,137

734,294734,294

Retained earnings

17,583,734

19,690,532

Total surplus

18,318,029

20,424,826

254,019,541

290,526,075

Deferred gains or losses on hedges

4,550-221,054

Total valuation and translation adjustments

4,550-221,054

254,024,091

290,305,021

Total liabilities
Net assets
Unitholders’ equity:
Unitholders’ capital
Surplus:Capital surplus
Deduction of unitholders’ capital surplus
Allowance for temporary differences
adjustment
Other deduction of capital surplus
Total deduction of unitholders’ capitalsurplusCapital surplus, net*2

Total unitholders’ equity
Valuation and translation adjustments:

Total net assets*1- 61 -

(Unit: JPY thousand)(Reference)
Fiscal period ended
June 30, 2023
(as of June 30, 2023)
496,819,930

Total liabilities and net assets- 62 -

Fiscal period ended
December 31, 2023
(as of December 31, 2023)
563,393,061

III.

Statement of Income and Retained Earnings(Unit: JPY thousand)(Reference)
Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)

Operating revenue
Rental revenue – real estateManagement contract revenue
Total operating revenue
Operating expenses
Property-related expenses
Management contract expenses
Asset management fees
Directors’ compensation
Asset custody fees
Administrative service fees
Other
Total operating expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Loan-related costs
Derivative losses
Investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

Fiscal period ended
December 31, 2023
(from July 1, 2023 to
December 31, 2023)*1*2

12,000,955
3,914,026
15,914,981

16,696,076
2,123,042
18,819,119*1*2

4,488,341
649,329300,000
4,800
24,736
39,162
51,871
5,558,241
10,356,739

5,096,717
734,722300,000
5,200
27,26748,537
17,7616,230,207
12,588,912

100
178,185
3,821
182,107

138
314
452

507,601
33,881

603,172
76,28863,059

7,053

10,839538,693537,269
1,624,499
8,914,347
8,914,347
605
605
8,913,742
8,669,991
17,583,734

620,370
30,078152,379
1,556,188
11,033,176
11,033,176
605
605
11,032,571
8,657,960
19,690,532- 63 -

IV.

Statement of Changes in Net Assets

Fiscal period ended June 30, 2023 (from January 1, 2023 to June 30, 2023)(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
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
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

142,721

142,721Total
net assets

13,742,562

14,476,857

250,178,369

250,321,091-5,072,570-5,072,570-5,072,570-5,072,570

8,913,742

8,913,742

8,913,742

8,913,742(138,171)(138,171)(138,171)

3,841,171

3,841,171

3,841,171(138,171)(138,171)3,703,000

17,583,734

18,318,029

254,019,541

4,550

4,550

254,024,091- 64 -

Fiscal period ended December 31, 2023 (from July 1, 2023 to December 31, 2023)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Unitholders’capitalDeduction of capital surplus
Allowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

6,264,432-6,130-5,524,006-5,530,137

734,294

34,399,737

－

－

－

－

－

270,101,249

6,264,432-6,130-5,524,006-5,530,137

734,294

Capital surplus

Balance at the
beginning of theperiodChanges during theperiodIssuance of new
investment units
Distributions fromsurplus235,701,512

34,399,737

Net income
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 theperiodIssuance of new
investment units
Distributions fromsurplus
Net income
Changes other thanunitholders’ equity(net)
Total changes during
the period
Balance at the end of
the period

17,583,734

Total
surplus18,318,029

Total
unitholders’equityDeferred
gains or losses
on hedges

Totalvaluation andtranslation
adjustments

254,019,541

4,550

4,550

Total
net assets

254,024,091

34,399,737

34,399,737-8,925,773-8,925,773-8,925,773-8,925,773

11,032,571

11,032,571

11,032,571

11,032,571-225,605-225,605-225,605

2,106,797

2,106,797

36,506,534-225,605-225,605

36,280,929

19,690,532

20,424,826

290,526,075-221,054-221,054

290,305,021- 65 -

V.

Notes to Financial Statements[Notes Concerning Significant Accounting Policies](Reference)
Fiscal period ended December 31, 2023
Fiscal period ended June 30, 2023
(from July 1, 2023 to December 31,
Item(from January 1, 2023 to June 30, 2023)
2023)
1. Evaluation standards and (a) Investment in affiliates(a) Investment in affiliates
evaluation method of
Cost method through moving-average
Cost method through moving-averageassetsmethod is used.
method is used.
(b) Claims generated and debt incurred (b) Claims generated and debt incurred
through derivative transactions
through derivative transactions
Market value method is used.
Market value method is used.
2. Method of depreciation (a) Property and equipment(a) Property and equipmentof non-current assets
The straight-line method is used.
The straight-line method is used.
The useful lives of major property,
The useful lives of major property,
plant and equipment are as follows.
plant and equipment are as follows.
Buildings
16-50 years
Buildings
16-50 years
Buildings and accompanying
Buildings and accompanying
facilities
facilities
5-29 years
5-29 years
Structures
20 years
Structures
20 years
Tools, furniture and fixtures
3-18
Tools, furniture and fixtures
3-18
years
years
Buildings in trust
5-67 years
Buildings in trust
5-67 years
Buildings and accompanying
Buildings and accompanying
facilities in trust
3-33 years
facilities in trust
3-33 years
Structures in trust
7-55 years
Structures in trust
7-55 years
Tools, furniture and fixtures in trust
Tools, furniture and fixtures in trust
3-20 years
3-20 years(b) Intangible assets(b) Intangible assets
For fixed-term land lease for business
For fixed-term land lease for businesspurposes in Japan, the straight-line
purposes in Japan, the straight-line
method based on the lease period is
method based on the lease period is
used.
used.
(c) Long-term prepaid expenses(c) Long-term prepaid expenses
The straight-line method is used.
The straight-line method is used.
3. Accounting treatment of Investment corporation bond issuance
Investment corporation bond issuancedeferred assets
costs
costs
Investment corporation bond issuance
Investment corporation bond issuancecosts are amortized using the straightcosts are amortized using the straightline method over a period up toline method over a period up to
redemption of the investment
redemption of the investment
corporation bonds.
corporation bonds.
4. Method of calculating
Allowance for doubtful accounts
Allowance for doubtful accounts
allowances
To reserve for losses on doubtful
To reserve for losses on doubtful
accounts, allowances are provided foraccounts, allowances are provided fornormal receivables using a ratenormal receivables using a rate
determined based on past bad debt
determined based on past bad debt
experiences, and specific allowances are experiences, and specific allowances areprovided for accounts with a possibility provided for accounts with a possibilityof default based on the estimatedof default based on the estimatedamounts considered to be uncollectible
amounts considered to be uncollectible
by considering the collectability ofby considering the collectability ofaccounts on an individual basis.
accounts on an individual basis.
5. Conversion of assets and Receivables and payables denominatedReceivables and payables denominatedliabilities in foreignin foreign currencies are translated into
in foreign currencies are translated intocurrency into Japanese
yen at the spot exchange rate at the end yen at the spot exchange rate at the end
yenof the fiscal period date, and differences of the fiscal period date, and differences
arising from the translation are treatedarising from the translation are treatedas a profit or loss.
as a profit or loss.
6. Revenue and expense(a) Accounting treatment of property(a) Accounting treatment of property
By Period- 66 -

By Period
Itemrecognition

7. Method of hedge
accounting(Reference)
Fiscal period ended December 31, 2023
Fiscal period ended June 30, 2023
(from July 1, 2023 to December 31,(from January 1, 2023 to June 30, 2023)
2023)
taxes and other taxes
taxes and other taxes
With respect to property taxes, city
With respect to property taxes, city
planning taxes and depreciable asset
planning taxes and depreciable asset
taxes, of the tax amount assessed andtaxes, of the tax amount assessed anddetermined, the amountdetermined, the amountcorresponding to the relevant fiscal
corresponding to the relevant fiscal
period is accounted for as property
period is accounted for as property
related expenses.
related expenses.
Of the amounts paid to the seller for
Of the amounts paid to the seller for
acquisitions of real estate, theacquisitions of real estate, theamount equivalent to property taxes
amount equivalent to property taxes
is capitalized as part of theis capitalized as part of theacquisition cost of the real estate
acquisition cost of the real estate
instead of being charged as expense.
instead of being charged as expense.
The amount equivalent to property
The amount equivalent to property
taxes that was capitalized as part oftaxes that was capitalized as part of
the acquisition cost of real estate
the acquisition cost of real estate
during the previous fiscal period isduring the Reporting Period is JPY
zero.
59,935 thousand.
(b) Recognition of revenue(b) Recognition of revenue
The following is the content of
The following is the content ofprincipal performance obligations
principal performance obligations
related to revenue from contracts
related to revenue from contracts
with INV’s customers and the normal
with INV’s customers and the normal
timing for the satisfaction of suchtiming for the satisfaction of suchobligations (normal timing forobligations (normal timing forrevenue recognition).
revenue recognition).
Sale of real estate, etc.
Sale of real estate, etc.
For the sale of real estate, etc.,
For the sale of real estate, etc.,
revenue will be recognized at therevenue will be recognized at thetime the control of such real estate,
time the control of such real estate,etc. is obtained by the purchaser,
etc. is obtained by the purchaser,
who is the customer, as the transfer
who is the customer, as the transfer
obligation will be fulfilled pursuant
obligation will be fulfilled pursuant
to the contract pertaining to the saleto the contract pertaining to the saleof real estate.
of real estate.
(a) Method of hedge accounting(a) Method of hedge accounting
Deferred hedge accounting is used.
Deferred hedge accounting is used.
(b) Hedging instrument and hedged item (b) Hedging instrument and hedged item
Hedging instrument: interest rate
Hedging instrument: interest rate
swap
swap
Hedged item: interest on borrowings
Hedged item: interest on borrowings(c) Hedge policy(c) Hedge policy
INV enters into derivatives
INV enters into derivatives
transactions for the purpose oftransactions for the purpose ofhedging against the risks set forth inhedging against the risks set forth in
INV’s Articles of Incorporation in
INV’s Articles of Incorporation inaccordance with its risk
accordance with its risk
management policy.
management policy.
(d) Method of evaluating hedge(d) Method of evaluating hedge
effectivenesseffectivenessHedge effectiveness is evaluated byHedge effectiveness is evaluated bycomparing the cumulative amountcomparing the cumulative amountof changes in cash flows of theof changes in cash flows of thehedging instrument and thehedging instrument and thecumulative amount of changes incumulative amount of changes incash flows of the hedged item andcash flows of the hedged item andverifying the difference in theverifying the difference in theamounts of change of both theamounts of change of both thehedged item and the hedging
hedged item and the hedging- 67 -

(Reference)
Fiscal period ended June 30, 2023
Item(from January 1, 2023 to June 30, 2023)
instrument.
8. Other significant(1) Accounting treatment policy of trust
matters which constitutebeneficiary interests in real estate
the basis for preparation
As to trust beneficiary interests inof financial statements
real estate, all accounts of assets andliabilities within assets in trust, as
well as all income generated andexpenses incurred from assets intrust, are recorded in the relevantbalance sheets and income
statement accounts. Of such items,
the following significant trust assets
and liabilities are shown separately
on the balance sheet.
(a) Cash and bank deposits in trust(b) Buildings in trust
Buildings and accompanying
facilities in trust
Structures in trust
Tools, furniture and fixtures intrust
Land in trust
Construction in progress intrust(c) Leasehold rights in trust(d) Tenant leasehold and security
deposits in trust(2) Accounting treatment of nondeductible consumption taxes
Non-deductible consumption taxesetc. regarding the acquisition ofassets are capitalized at amounts ofacquisition cost of each asset.
By Period- 68 -

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31,
2023)
instrument.
(1) Accounting treatment policy of trust
beneficiary interests in real estate
As to trust beneficiary interests inreal estate, all accounts of assets andliabilities within assets in trust, as
well as all income generated andexpenses incurred from assets intrust, are recorded in the relevantbalance sheets and income
statement accounts. Of such items,
the following significant trust assets
and liabilities are shown separately
on the balance sheet.
(a) Cash and bank deposits in trust(b) Buildings in trust
Buildings and accompanying
facilities in trust
Structures in trust
Tools, furniture and fixtures intrust
Land in trust
Construction in progress intrust(c) Leasehold rights in trust(d) Tenant leasehold and security
deposits in trust(2) Accounting treatment of nondeductible consumption taxes
Non-deductible consumption taxesetc. regarding the acquisition ofassets are capitalized at amounts ofacquisition cost of each asset.

[Notes to the Balance Sheet](Reference) Fiscal period ended June 30, 2023
Fiscal period ended December 31, 2023
(from January 1, 2023 to June 30, 2023)(from July 1, 2023 to December 31, 2023)*1. Minimum net assets as required by Article 67,*1. Minimum net assets as required by Article 67,
Paragraph 4 of the Act on Investment Trusts andParagraph 4 of the Act on Investment Trusts andInvestment Corporations
Investment Corporations
JPY 50,000 thousand
JPY 50,000 thousand*2. Allowance for temporary differences adjustment(Reference) Fiscal period ended ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
1. Reasons, related assets and amounts(Unit: JPY thousand)Relatedassets,etc.

ReasonLeaseholdrights intrust

Amortizationof leasehold
rightsBalance at the
beginning of
periodAllowance
set aside
duringperiodReversalduringperiodBalance at theend of period-131,332-6,130---6,130-131,332-6,130---6,130Initial amountTotal

2. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.
Fiscal period December 31, 2023 (from July 1, 2023 to December 31, 2023)
1. Reasons, related assets and amounts(Unit: JPY thousand)Relatedassets,etc.

ReasonLeaseholdAmortization ofrights inleasehold rights
trust
Total

Initial amount

Balance at the
beginning of
periodAllowance
set aside
duringperiodReversalduringperiodBalance at theend of period-131,332-6,130---6,130-131,332-6,130---6,1302. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.

- 69 -

[Notes to Statement of Income and Retained Earnings](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues

Rental revenue – real estate(Rent/common area charges)(Note)(Other revenues)
Total
B.

Rental revenue – real estate(Rent/common area charges)(Note)

11,729,696
271,259

Total
B.

Property-related expenses

16,696,076

Real estate rental expenses
Property-related expenses(Maintenance costs)

445,723(Maintenance costs)

438,212(Taxes and public dues)

596,132(Taxes and public dues)

754,133(Insurance expenses)

20,475(Insurance expenses)

23,534(Depreciation expenses)

3,311,017(Depreciation expenses)

3,776,448(Other expenses)
Total

114,992(A-B)

Management contract revenue andexpenses (C-D)

5,096,717

Total
C. Real estate rental income

7,512,613(Note) Of which, revenue from4,615,327
variable hotel rents*2. Management contract revenue and expenses(Unit: JPY thousand)
A. Hotel operating revenue
B. Hotel operating expenses
C. Management contract revenue(A-B)
D. Management contract expenses
Non-life insurance expenses
Depreciation expenses
Other
Total

104,388(Other expenses)

4,488,341

C. Real estate rental incomeE.

159,279(Other revenues)

12,000,955

Real estate rental expenses

16,536,797

8,388,052
4,474,026
3,914,026
152,464
435,496
61,368649,329
3,264,696(A-B)

11,599,359(Note) Of which, revenue from
7,441,452
variable hotel rents*2. Management contract revenue and expenses(Unit: JPY thousand)
A. Hotel operating revenue
B. Hotel operating expenses
C. Management contract revenue(A-B)
D. Management contract expenses
Non-life insurance expenses
Depreciation expenses
Other
Total
E.

Management contract revenue
and expenses (C-D)

6,309,635
4,186,593
2,123,042
218,735
441,542
74,443734,722
1,388,320[Notes to Statement of Changes in Net Assets](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

Total number of issuable investment units and number of Total number of issuable investment units and number ofinvestment units issued and outstanding
investment units issued and outstanding
Total number of investment units
Total number of investment units
10,000,000 units
10,000,000 units
authorized
authorized
Total number of investment units issued
Total number of investment units issued
6,096,840 units
6,737,121 units
and outstanding
and outstanding- 70 -

[Notes Related to Tax Accounting](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

1. Significant components of deferred tax assets and
1. Significant components of deferred tax assets andliabilities
liabilities(Unit: JPY thousand)(Unit: JPY thousand)(Deferred tax assets)(Deferred tax assets)
615 Enterprise tax payable
615
Enterprise tax payable
Buildings and other (merger)
Land (merger)

185,229

Buildings and other (merger)

116,724

Land (merger)

181,991
116,724

Loss carried forward (Note 1)

1,288,595

Loss carried forward (Note 1)

1,277,967

Asset retirement obligations

10,727

Asset retirement obligations

123,701

Amortization of leasehold right
Adjustment of acquisition prices(overseas properties)
Subtotal
Valuation allowance for tax loss
carried forward
Valuation allowance for the totalof deductible temporary
differences, etc.
Subtotal (Note 2)

174,196

Amortization of leasehold right
Adjustment of acquisition prices(overseas properties)
Deposit

186,540

Subtotal
Valuation allowance for tax loss
carried forward
Valuation allowance for the totalof deductible temporary
differences, etc.
Subtotal (Note 2)

2,339,028

445,643
2,221,732-1,288,595-933,137-2,221,732

441,696
9,789-1,277,967-1,061,060-2,339,028
Total(Note 1) The amounts of tax loss carried forward and the Total
deferred tax assets by carry-forward period are (Note 1) The amounts of tax loss carried forward and theas follows.
deferred tax assets by carry-forward period are(Unit: JPY thousand)as follows.
Due after(Unit: JPY thousand)Due
Due after
Due after
withinone year

one totwo years

-

-

-

-

-

-

Tax loss
carriedforward (a)Valuation
allowance
Deferred tax
assetsDueafterfour tofive
years
Tax loss
carriedforward (a)Valuation
allowance
Deferred tax
assetsDue after
five years

two tothree
years

three tofour years

-

-

-

-

-

-

1,288,595

1,288,595--1,288,595-1,288,595

-

-

-

Due after
one totwo years

Due after
two tothree
years

Due after
three to
four
years

-

-

-

-

-

-

-

-

-

-

-

-

Tax loss
carriedforward (a)Valuation
allowance
Deferred tax
assetsDueafterfour to
five
years

Total

-

Due
withinone yearTax loss
carriedforward (a)Valuation
allowance
Deferred tax
assetsDue after
five years

Total

-

1,277,967

1,277,967--1,277,967-1,277,967(a) Tax loss carried forward is multiplied by statutory tax
rate.
(a) Tax loss carried forward is multiplied by statutory tax(Note 2) Valuation allowance decreased by JPY 313,369 rate.
thousand mainly due to a decrease in tax loss (Note 2) Valuation allowance increased by JPY 117,295
carried forward.
thousand mainly due to an increase in thevaluation allowanceobligations.

- 71 -

for

asset

retirement

(Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

2. Significant difference between statutory tax rate andthe effective tax rate
Statutory tax rate
31.46%

2. Significant difference between statutory tax rate andthe effective tax rate
Statutory tax rate
31.46%

Deductible cash distributions-31.50%

Deductible cash distributions

Changes in valuation allowance-3.52%

Changes in valuation allowance

1.06%

Expiration of loss carried forward

3.55%

Others-1.01%

Others0.01%

Effective tax rate

0.01%

Effective tax rate

0.01%

-31.50%[Notes Related to Financial Instruments](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

1. Status of financial instruments(1) Policy for financial instruments
INV principally conducts its operations throughinvestments in real estate and other specified assets
to seek to ensure stable income in the medium tolong term.
The policy for raising funds is principally throughissuing new investment units, investment
corporation bonds, or borrowing loans.
Derivative transactions are to be entered into for the
purpose of hedging against the risks of futureinterest 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.

1. Status of financial instruments(1) Policy for financial instruments
INV principally conducts its operations throughinvestments in real estate and other specified assets
to seek to ensure stable income in the medium tolong term.
The policy for raising funds is principally throughissuing new investment units, investment
corporation bonds, or borrowing loans.
Derivative transactions are to be entered into for the
purpose of hedging against the risks of futureinterest 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 issuinginvestment corporation bonds are mainly used toacquire real estate properties or trust beneficiaryinterest in real estate (including related acquisition
costs) and for the refinancing of existing loans.
Liquidity risks relating to loan are managed by thefinance department of CIM by preparing andupdating plans for funds, and monitoring thecovenants set forth in loan agreements.

(2) Nature and extent of risks arising from financial
instruments and risk management.
The funds raised through borrowings and issuinginvestment corporation bonds are mainly used toacquire real estate properties or trust beneficiaryinterest in real estate (including related acquisition
costs) and for the refinancing of existing loans.
Liquidity risks relating to loan are managed by thefinance department of CIM by preparing andupdating plans for funds, and monitoring thecovenants set forth in loan agreements.

(3) Supplemental information regarding fair value, etc.
for 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 suchvalue.

(3) Supplemental information regarding fair value, etc.
for 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 suchvalue.

- 72 -

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between
value as of June 30, 2023 are as follows. “Cash andbank deposits”, “Cash and 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, “Tenant leasehold and security deposits intrust” is omitted because they are not material.
(Unit: JPY thousand)(1) Investment
securities
Total assets(2) Current portion of
Investment
Corporation
Bonds(3) Current portion of
long-term loans
payable(4) Investment
corporation bonds

Book Value

Fair Value

Difference

17,856,387

18,935,791

1,079,404

17,856,387

18,935,791

1,079,404

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between
value as December 31, 2023 of are as follows. “Cashand bank deposits”, “Cash and bank deposits intrust” 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 oftime. Moreover, “Tenant leasehold and security
deposits in trust” is omitted because they are notmaterial.
(Unit: JPY thousand)(1) Investment
securities
Total assets(2,000,000)(46,139,000)(1,996,000)(46,139,000)(2) Current portion of
Investment
Corporation
Bonds(3) Current portion of
long-term loans
payable(4) Investment
corporation bonds

4,000

-

Book Value

Fair Value

Difference

17,856,387

21,102,242

3,245,855

17,856,387

21,102,242

3,245,855(1,000,000)(994,700)

5,300(36,787,000)(36,787,000)-(13,900,000)(13,650,170)

249,830(11,400,000)(11,166,860)

233,140(5) Long-term loans(68,198,000)(68,198,000)-

Total liabilities(127,737,000)(127,499,860)

237,140(5) Long-term loans(180,893,000) (180,893,000)--

Total liabilities(232,580,000) (232,324,870)

255,130(6) Derivatives(486,218)(486,218)(6) Derivatives(*1) Items recorded in the Liabilities Section are shownin parenthesis.
(*2) Receivables and payables arising from derivativetransactions are recorded in net amounts, and if thetotal net amount is a negative amount, suchamount is shown in parenthesis.

(646,492)(646,492)-(Note 1) Methods to calculate fair value of financial
instruments.
(1) Investment securities
For preferred equity interest, the assets and liabilities of
the investee are valued at fair value, and the equity
equivalent in the obtained net asset value is deemed as
the fair value of the preferred equity interest.

(*1) Items recorded in the Liabilities Section are shownin parenthesis.
(*2) Receivables and payables arising from derivativetransactions are recorded in net amounts, and if thetotal net amount is a negative amount, suchamount is shown in parenthesis.
(Note 1) Methods to calculate fair value of financial
instruments.
(1) Investment securities
For preferred equity interest, the assets and liabilities of
the investee are valued at fair value, and the equity
equivalent in the obtained net asset value is deemed as
the fair value of the preferred equity interest.

(2) Current portion of Investment Corporation Bonds (4)Investment corporation bonds
Fair value is calculated using a method based on market
price.

(2) Current portion of Investment Corporation Bonds (4)Investment corporation bonds
Fair value is calculated using a method based on market
price.

(3) Current portion of long-term loans payable (5)Long-term loans payable
Long-term loans with floating interest rates reflectingchanges in market rates within a short-term period arestated at their book value as their book value
approximate their fair value.

(3) Current portion of long-term loans payable (5)Long-term loans payable
Long-term loans with floating interest rates reflectingchanges in market rates within a short-term period arestated at their book value as their book value
approximate their fair value.

- 73 -

(6) Derivatives(a) Derivatives transactions to which hedge
accounting is not applied
As for derivative transactions for which hedge
accounting is not applied, the contract amount asof the closing date and the amount equivalent to
the notional principal prescribed in the contract
are as follows.

(6) Derivatives(a) Derivatives transactions to which hedge
accounting is not applied
As for derivative transactions for which hedge
accounting is not applied, the contract amount asof the closing date and the amount equivalent to
the notional principal prescribed in the contract
are as follows.

(Unit: JPY thousand)(Unit: JPY thousand)

Derivative

Contract amount, etc.

Classification transaction

Amounttype, etc.

due after

Fair value

Valuation(*1)

gains/losses

Derivative

Contract amount, etc.

Classification transaction

Amounttype, etc.

due after

one yearforward5,158,490 1,872,600-490,769-490,769

OTC

forwardtransaction transaction

short USD

4,397,800

989,200(Unit: JPY thousand)Primary(*1)

transaction

hedgedAmountaccounting type, etc.

item

due after(Unit: JPY thousand)Contract amount, etc.

Fair value(*2)

Method of Derivative
hedge

Amountaccounting type, etc.

item

due after

methodInterest
rate swap

floating

Principle
18,441,000

Fair value(*2)

one yearInterest

Borrowings 36,687,000(*1)

hedgedrate swap
Receive

Primarytransaction

one yearPrinciple-425,438(*1) Estimation method for fair value
Currency option:
Indicates fair values of option fees, etc. presented
by the correspondent financial institutions.
(b) Derivatives transactions to which hedge
accounting is applied
The contract amount as of the closing date undereach hedge-accounting method and the amountequivalent to the notional principal prescribed in
the contracts are as shown below.

Contract amount, etc.

accounting-425,438

short USD(*1) Estimation method for fair value
Currency option:
Indicates fair values of option fees, etc. presented
by the correspondent financial institutions.
(b) Derivatives transactions to which hedge
accounting is applied
The contract amount as of the closing date undereach hedge-accounting method and the amountequivalent to the notional principal prescribed in
the contracts are as shown below.

hedge

gains/losses

Currencytransaction transaction

Method of Derivative

Valuation(*1)

one year

Currency
OTC

Fair value

4,550

accounting
methodrate/pay
fixed rate

Receivefloating

Borrowings 130,282,250 101,297,250-221,054

rate/pay
fixed rate(*1) The contract amount, etc. for interest rate swap arestated based on a notional principal.
(*2) Estimation method for fair value
Interest rate swap:
Estimated based on the price, etc. presented by
the correspondent financial institutions.

- 74 -(*1) The contract amount, etc. for interest rate swap arestated based on a notional principal.
(*2) Estimation method for fair value
Interest rate swap:
Estimated based on the price, etc. presented by
the correspondent financial institutions.

(Note 2) Repayment schedule of investment corporation
bonds, long-term loans payable and otherinterest-bearing debts after the closing date of
the fiscal period

Current portion of
Investment
Corporation Bonds
Current portion of
long-term loans
payableInvestment corporationbonds
Long-term loans
payableTotal

Current portion of
Investment
Corporation Bonds
Current portion of
long-term loans
payableInvestment corporationbonds
Long-term loans
payableTotal(Note 2) Repayment schedule of investment corporation
bonds, long-term loans payable and otherinterest-bearing debts after the closing date of
the fiscal period(Unit: JPY thousand)(Unit: JPY thousand)Due after
Due within Due after one
two to three
one year to two years
years

Due after
Due within Due after one
two to three
one year to two years
years

2,000,000--

46,139,000

-

-

-

1,000,000

5,000,000-

42,243,000

23,804,000

48,139,000

43,243,000

28,804,000

Due after
three to fouryears

Due after
Due after five
four to five
years
years

-

-

-

-

-

-

-

2,200,000

3,200,000-

1,190,000

961,000-

3,390,000

4,161,000- 75 -

Current portion of
Investment
Corporation Bonds
Current portion of
long-term loans
payableInvestment corporationbonds
Long-term loans
payableTotal

1,000,000--

36,787,000

-

-

-

-

5,000,000-

39,399,000

51,912,200

37,787,000

39,399,000

56,912,200

Due after
three to four
years
Current portion of
Investment
Corporation Bonds
Current portion of
long-term loans
payableInvestment corporationbonds
Long-term loans
payableTotal

Due after
Due after five
four to five
years
years

-

-

-

-

-

-

-

5,700,000

3,200,000

31,018,750

53,281,050

5,282,000

31,018,750

58,981,050

8,482,000

[Notes Related to Asset Retirement Obligations](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

1. Summary of the asset retirement obligations for the
1. Summary of the asset retirement obligations for theperiodperiodINV has recorded asset retirement obligations inPart of INV’s assets has recorded asset retirement
regard to its obligation to restore the land to its
obligations in regard to its obligation to restore theoriginal condition related to the fixed-term land leaseland to its original condition related to the fixed-term
agreement of Comfort Hotel Maebashi held by INV.
land lease agreement and contractual and legal
2. Calculation method for asset retirement obligations forobligation to remove the asbestos.
the period
2. Calculation method for asset retirement obligations for
The amount of the asset retirement obligations has
the period
been calculated by fixing the estimated period of use
The amount of the asset retirement obligations has
at 43 years, based on the period until the expiration ofbeen calculated by fixing the estimated period of use,the fixed-term land lease agreement, and by using a
based on the period until the expiration of the fixeddiscount rate of 1.342%.
term land lease agreement (43 years) and the useful
3. Increase/decrease in the total amount of asset
life of the buildings containing asbestos (15 to 31
retirement obligations for the end of the period
years), and by using a discount rate of 1.342% and of(Unit: JPY thousand)
0.963 to 1.505%, respectively.
3.
Increase/decreasein the total amount of asset
33,872
Balance at the beginning of the period
retirement obligations for the end of the period(Unit: JPY thousand)Increase due to the acquisition of properties
Accretion expense
Balance at the end of the period

225
34,097

Balance at the beginning of the period

34,097

Increase due to the acquisition of properties

357,149

Accretion expense
Balance at the end of the period- 76 -

1,955
393,202

[Notes Related to Rental Properties](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

INV owns residential properties and hotels as coreassets principally in the Greater Tokyo area andmajor regional cities with an aim to establish a
portfolio focusing on both stability and growthpotential. The book value changed during theperiod and the fair value at the end of the period are
as follows.

INV owns residential properties and hotels as coreassets principally in the Greater Tokyo area andmajor regional cities with an aim to establish a
portfolio focusing on both stability and growthpotential. The book value changed during theperiod and the fair value at the end of the period are
as follows.

(Unit: JPY thousand)(Unit: JPY thousand)Book value
Use

Residences

Book value

Balance atthebeginning of
the period

Changeduring theperiodBalance atthe end of
the period

34,383,500-172,720

34,210,779

Fair value atthe end of
the period

Use

Balance atthebeginning of
the period

Changeduring theperiodBalance atthe end of
the period

Fair value atthe end of
the period

48,017,000

Residences

34,210,779-124,698

34,086,080

48,229,000

1,588,724

2,380,000

Commercia
l facilities

1,588,724

3,999

1,592,723

2,380,000-2,603,993

404,698,985

510,566,211

Hotels404,698,985

55,404,420 460,103,406

578,432,474-2,793,312

440,498,489

560,963,211

Total

440,498,489

55,283,722 495,782,211

629,041,474

Commercia
l facilities

1,605,322-16,598

Hotels407,302,979

Total

443,291,801(Note 1) Book value is the figure calculated bysubtracting
amountofaccumulated
depreciation from acquisition price (including
acquisition-related costs).
(Note 2) The major factor for the increase for theprevious fiscal period was construction work
related to capital expenditures.
(Note 3) The major factor of the decrease was sale ofresidences and depreciation.
(Note 4) The fair value at the end of the previous fiscal
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., The Tanizawa Sogo Appraisal
Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd.
and CBRE, Inc.

(Note 1) Book value is the figure calculated bysubtracting
amountofaccumulated
depreciation from acquisition price (including
acquisition-related costs).
(Note 2) The major factors for the increase for theReporting Period were construction work
related to capital expenditures and acquisitionof hotels.
(Note 3) The major factor of the decrease wasdepreciation.
(Note 4) The fair value at the end of the Reporting
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., The Tanizawa Sogo Appraisal
Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd.
and CBRE, Inc.

For information related to profits and losses fromrental properties in the previous fiscal period, pleaserefer to “Notes to Statement of Income and Retained
Earnings.”

For information related to profits and losses fromrental properties in the Reporting Period, please refer
to “Notes to Statement of Income and Retained
Earnings.”[Notes Related to Restriction on Asset Management](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

Not applicable.

Not applicable.

- 77 -

[Notes Related to Transactions with Related Parties](Reference) Fiscal period ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
1

Interested parties of CIM

Classification

Name

Business or
occupation

Percentage
of votingrightsowned(%)

Type of transaction

Transaction
amount(JPY
thousand)(Note 1)

Account

Balance at the endof the period(JPY thousand)(Note 1)Naqua Hotel &Resorts
Hotel
RentalManagement
Rental revenues
612,959 receivables
261,128
businessCo., Ltd.
Interested(Note 2)
party of CIM
MyStays HotelManagement
Hotel
RentalRental revenues
8,022,489 receivables
3,227,566
Co., Ltd.
business(Note 2)
(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 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 Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo
Mitsui Trust
Bank, Limited

Business or
occupation

Banking andtrust business

Percentageofinvestment
units owned(%)-

Type of transaction
Borrowing of
short-term loan
Repayment ofshort-term loan
Borrowing of
long-term loan
Repayment oflong-term loan

Transaction
amount(JPY
thousand)(Note 1)
9,092,600
10,711,500
4,824,500
3,952,600

Account

Balance at theend of theperiod(JPY thousand)(Note 1)

Short-termloans payable

15,754,100

Long-termloans payable

18,229,900

Prepaid
69,162
expenses
95,780Long-term
prepaid
49,559expenses
Interest expenses
Accrued74,705400(Note 2)
expenses(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) The terms and conditions have been determined based on actual market conditions.
Finance-related fees
(Note 2)- 78 -

Fiscal period ended December 31, 2023 (from July 1, 2023 to December 31, 2023)
1

Interested parties of CIM
NameBusiness or
occupation

Percentage
of votingrightsowned(%)

Type of transaction

Transaction
amount(JPY
thousand)(Note 1)

Account

Sheffield Asset
Tokutei
Mokuteki Kaisha(Note 3)

Investment
managementbusiness-

Purchase of trust
beneficiary interests inreal estate(Note 2) (Note 4)

40,293,000--

Heijo Tokutei
Mokuteki
Kaisha(Note 3)

Investment
managementbusiness-

Purchase of trust
beneficiary interests inreal estate(Note 2) (Note 4)

9,840,000--

Nippori Tokutei
Mokuteki
Kaisha(Note 3)

Investment
managementbusiness-

Purchase of trust
beneficiary interests inreal estate(Note 2) (Note 4)

4,652,000--

Investment
managementbusiness-

Purchase of trust
beneficiary interests inreal estate(Note 2) (Note 4)

2,445,000--

Naqua Hotel &Resorts
Management Co.,
Ltd.
(Note 3)Hotelbusiness-

Rental revenues

1,064,067

Accounts
receivable

174,796

MyStays HotelManagement Co.,
Ltd.
(Note 3)Hotelbusiness-

Rental revenues

10,473,047

Accounts
receivable

3,915,256

Classification

Interested
party of CIM Shiretoko Tokutei
Mokuteki Kaisha(Note 3)

Balance at the endof the period(JPY thousand)(Note 1)

(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) The terms and conditions have been determined based on the Asset Manager’s internal rules and manual regardingtransactions with sponsor related parties.
(Note 3) Sheffield Asset Tokutei Mokuteki Kaisha , Heijo Tokutei Mokuteki Kaisha, Nippori Tokutei Mokuteki Kaisha, Shiretoko
Tokutei Mokuteki Kaisha, Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. haveno capital relationship to be disclosed with CIM. However, these tenants and operators have received an anonymous
partnership investment or investment 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
Sheffield Asset Tokutei Mokuteki Kaisha , Heijo Tokutei Mokuteki Kaisha, Nippori Tokutei Mokuteki Kaisha, Shiretoko
Tokutei Mokuteki Kaisha, Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. as theequivalent to interested parties.
(Note 4) The purchase of trust beneficiary interests pertains to the following properties. The transaction amount is the purchase pricestated in the trust beneficiary purchase agreement, in which other expenses for acquisition, property taxes, city planningtaxes and consumption taxes are not included.

Property
NumberName of Property

Counterparty

D84

Fusaki Beach Resort Hotel & Villas

Sheffield Asset Tokutei Mokuteki Kaisha

40,293,000

D85

Tateshina Grand Hotel Takinoyu

Heijo Tokutei Mokuteki Kaisha

8,365,000

D86

Hotel MyStays Okayama

Nippori Tokutei Mokuteki Kaisha

2,613,000

D87

Hotel MyStays Aomori Station

Shiretoko Tokutei Mokuteki Kaisha

2,445,000

D88

Hotel MyStays Soga

Nippori Tokutei Mokuteki
Kaisha2,039,000

D89

Tazawako Lake Resort & Onsen

Heijo Tokutei Mokuteki Kaisha

1,475,000

Total

Purchase Price(JPY thousand)

57,230,000- 79 -

2

Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo
Mitsui Trust
Bank, Limited

Business or
occupation

Percentageofinvestment
units owned(%)

Banking andtrust businessType of transaction

Transaction
amount(JPY
thousand)(Note 1)

Borrowing of
short-term loan
Repayment ofshort-term loan
Borrowing of
long-term loan
Repayment oflong-term loan-

654,700
7,278,500
15,441,800
2,955,000

Account

Balance at theend of theperiod(JPY thousand)(Note 1)

Short-termloans payable

9,130,300

Long-termloans payable

29,735,700

Prepaid
121,723
expenses
294,524
Long-term
prepaid
220,290expenses
Interest expenses
Accrued
88,063
1,504(Note 2)
expenses(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) The terms and conditions have been determined based on actual market conditions.
Finance-related fees
(Note 2)

[Notes Related to Per Unit Information](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

Net assets per unit

JPY 41,665

Net assets per unit

JPY 43,090

Net income per unit

JPY 1,462

Net income per unit

JPY 1,639

Net income per unit is calculated by dividing net income
for the period by the daily weighted average number ofinvestment units issued and outstanding. Diluted net
income per unit is not stated, as there are no diluted
units.
(Note)Net income per unit is calculated by dividing net income
for the period by the daily weighted average number ofinvestment units issued and outstanding. Diluted net
income per unit is not stated, as there are no diluted
units.

The basis for calculating net income per unit is as follows.
(Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Net income for the period (JPY thousand)Amounts not attributable to common
unitholders (JPY thousand)Net income attributable to common units(JPY thousand)Average number of investment units during
the period (units)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

8,913,742
8,913,742
6,096,840- 80 -Net income for the period (JPY thousand)

11,032,571

Amounts not attributable to common
unitholders (JPY thousand)Net income attributable to common units
11,032,571(JPY thousand)Average number of investment units during
6,732,039
the period (units)

[Notes Related to Revenue Recognition](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

1. Breakdown of revenue from contracts with customers

1. Breakdown of revenue from contracts with customers(Unit: JPY thousand)Sale of realestate, etc.
Other
Total

Revenue fromcontracts withcustomers (Note 1)

Net sales to externalcustomers--

27,64527,645

15,914,981
15,914,981(Unit: JPY thousand)Sale of realestate, etc.
Other
Total

Revenue fromcontracts withcustomers (Note 1)

Net sales to externalcustomers--

28,37028,37018,819,119
18,819,119(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 thesale 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 Instituteof Certified Public Accountants) are not included
in “Revenue from contracts with customers” asthey are not covered by the Accounting Standard
for Revenue Recognition. Major revenue fromcontracts with customers is proceeds from sale ofreal estate properties.

(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 thesale 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 Instituteof Certified Public Accountants) are not included
in “Revenue from contracts with customers” asthey are not covered by the Accounting Standard
for Revenue Recognition. Major revenue fromcontracts with customers is proceeds from sale ofreal estate properties.

2. Information utilized as the basis for understanding
revenue from contracts with customers
The information is as described in “Notes Concerning
Significant Accounting Policies” above.

2. Information utilized as the basis for understanding
revenue from contracts with customers
The information is as described in “Notes Concerning
Significant Accounting Policies” above.

3. Information on relationship of fulfillment of
3. Information on relationship of fulfillment of
performance obligations based on contracts withperformance obligations based on contracts withcustomers with cashflow generated from said contracts
customers with cashflow generated from said contracts
as well as amount of revenue and period expected toas well as amount of revenue and period expected tobe recognized in the next calculation period or
be recognized in the next calculation period or
thereafter from contracts with customers existing atthereafter from contracts with customers existing at
the end of the previous fiscal period
the end of the Reporting Period(1) Balance of contract assets and contract liabilities, etc. (1) Balance of contract assets and contract liabilities, etc.
(Unit: JPY thousand)(Unit: JPY thousand)Fiscal period
ended June 30,
2023
Claims generated from contracts withcustomers(balance at the beginning of the period)
Claims generated from contracts withcustomers(balance at the end of the period)

4,231
3,093

Fiscal period
ended December
31, 2023
Claims generated from contracts withcustomers(balance at the beginning of the period)
Claims generated from contracts withcustomers(balance at the end of the period)

3,093
2,876

Contract assets(balance at the beginning of the period)-

Contract assets(balance at the beginning of the period)-

Contract assets(balance at the end 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 beginning of the period)-

Contract liabilities(balance at the end of the period)-

Contract liabilities(balance at the end of the period)-(2) Transaction value allocated to remaining
performance obligations
Not applicable(2) Transaction value allocated to remaining
performance obligations
Not applicable- 81 -

[Notes Related to Significant Subsequent Events](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

1. Issuance of new investment units
INV resolved at its meetings of the Board of
Directors held on July 19, 2023 and July 25, 2023
respectively to conduct the issuance of new
investment units and secondary offering ofinvestment units.
Payment for the newinvestment units issued through the public offering
was completed on July 31, 2023, in accordance withthe following terms and conditions. As a result,the unitholders’ capital of INV is JPY 268,463
million and the number of investment units issued
and outstanding of INV increased to 6,706,632.
(1) Issuance of new investment units through public
offering
Number of investment
units offered
Of whichdomestic public
offering
overseas offering:

609,792 investment
units

:

353,680 investment
units
256,112 investment
units
JPY 55,566 per unit
JPY 33,883,702,272:

Issue price (offer price):
Total issue price (totaloffer price)
Paid amount (issue value) : JPY 53,726 per unit
Total paid amount: JPY 32,761,684,992(total issue value)
Payment date
: July 31, 2023
(2) Secondary offering of investment units (overallotment secondary offering)Number of Investment: 30,489 investment
Units offered in theunits
secondary offering
Offer price: JPY 55,566 per unit
Total offer price: JPY 1,694,151,774
Delivery date
: August 1, 2023
(3) Issuance of new investment units through thirdparty allotment (Note 1)
Number of investment
units offered
Amount to be paid
(issue value)
Total paid amount(total issue value)
Payment date
Allottee::

30,489 investment
units
JPY 53,726 per unit:

JPY 1,638,052,014::

August 28, 2023
Mizuho Securities Co.,
Ltd.

(Note 1) In relation to the overallotment secondaryoffering, the investment units will be issued forthe purpose of allowing Mizuho Securities Co.,
Ltd. to acquire investment units required for
returning the borrowed investment units.
Consequently, there may be cases where there
will be no application for whole or part of the- 82 -

Not applicable(Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

investment units to be issued through thethird-party allotment, resulting in acommensurate shortfall in the ultimate
number of investment units to be issued
through the third-party allotment, due toforfeiture, or there may be cases where such
issuance itself will not take place at all.

2. Debt Financing
In order to fund a portion of the acquisition price forsix hotel properties (domestic real estate trust
beneficiary interests) acquired on August 1, 2023,
INV resolved the following debt financing at a
meeting of the Board of Directors held on July 19,
2023, and entered into a loan agreement on the sameday.
New Syndicate Loan (010)
Lender: Syndicate of lenders
arranged by Mizuho Bank,Ltd.
Outstanding: JPY 29,856 million
balance
Interest rate, etc.
: Base Rate (3-month JPY
TIBOR) + 0.500%, 0.300%
Base Rate (1-month JPY
TIBOR) + 0.200%
Interest payment: The last Japanese businessdate
day of March, June,
September, and December
before the principal maturity
date, beginning with
September 30, 2023, and theprincipal maturity date
The last Japanese business
day of each month before theprincipal maturity date,
beginning with August 31,
2023, and the principal
maturity datePrincipal: Lump-sum repayment
repayment method
Borrowing method : Unsecured/ non-guarantee
Borrowing date
: August 1, 2023
Maturity date
: July 14, 2028, July 16, 2026,
August 1, 2024
3. Acquisition of assets (properties)
INV resolved acquisition of the following six hotel
properties (total acquisition price: JPY 57,230
million) on July 19, 2023 and completed theacquisition on August 1, 2023.
Property Number: D84
Hotel & Villas
Acquisition Date

Fusaki

Beach

Resort: August 1, 2023

Acquisition Price (Note 1): JPY 40,293 million

Location: Ishigaki-shi, Okinawa- 83 -

(Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Completion Date

Legal Form of Asset
SellerFiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023): June 1982
June 2019
March 2020
: Trust beneficiary interest

Total Floor Area

: Sheffield Asset Tokutei
Mokuteki Kaisha: 23,573.57 m2

Total Leasable Area

: 23,573.57 m2

Property Number: D85
Takinoyu
Acquisition Date

: August 1, 2023

Acquisition Price (Note 1): JPY 8,365 million

Location: Chino-shi, Nagano

Completion Date

: August 1966
July 1967
July 1988: Trust beneficiary interest

Legal Form of Asset
SellerTateshina Grand Hotel

Total Floor Area

: Heijo Tokutei Mokuteki
Kaisha: 20,577.41 m2

Total Leasable Area

: 20,577.41 m2

Property Number: D86
Acquisition Date

Hotel MyStays Okayama: August 1, 2023

Acquisition Price (Note 1): JPY 2,613 million

Location: Okayama-shi, Okayama

Completion Date

: March 1986

Legal Form of Asset: Trust beneficiary interest

SellerTotal Floor Area

: Nippori Tokutei Mokuteki
Kaisha: 3,023.27 m2

Total Leasable Area

: 3,023.27 m2

Property Number: D87
StationAcquisition Date

Hotel MyStays Aomori: August 1, 2023

Acquisition Price (Note 1): JPY 2,445 million

Location: Aomori-shi, Aomori

Completion Date

: June 2007

Legal Form of Asset: Trust beneficiary interest

SellerTotal Floor Area

: Shiretoko Tokutei
Mokuteki Kaisha: 3,963.86 m2

Total Leasable Area

: 3,963.86 m2

Property Number: D88
Acquisition Date

Hotel MyStays Soga
: August 1, 2023

Acquisition Price (Note 1): JPY 2,039 million- 84 -

(Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)

Location: Chiba-shi, Chiba

Completion Date

: February 1994

Legal Form of Asset: Trust beneficiary interest

SellerTotal Floor Area

: Nippori Tokutei Mokuteki
Kaisha: 3,398.18 m2

Total Leasable Area

: 3,398.18 m2

Property Number: D89
Onsen
Acquisition Date

: August 1, 2023

Acquisition Price (Note 1): JPY 1,475 million

Location: Senboku-shi, Akita

Completion Date

: December 1981
November 1988
: Trust beneficiary interest

Legal Form of Asset
SellerTazawako Lake Resort &Total Floor Area

: Heijo Tokutei Mokuteki
Kaisha: 7,289.75 m2

Total Leasable Area

: 7,289.75 m2(Note 1) Acquisition price is based on the purchase priceindicated in the relevant purchase agreement and does notinclude acquisition-related expenses, property taxes, city
planning taxes or consumption taxes.

[Notes Related to Provision and Reversal of Allowance for Temporary Differences Adjustment](Reference) Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Not applicable

Fiscal period ended December 31, 2023
(from July 1, 2023 to December 31, 2023)
Not applicable- 85 -

VI.

Statement of Cash Distribution(Reference)
Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
I.

Unappropriatedretained earnings
II . Distributions(Distribution per unit)
III. Retained earnings(deficit) carried forward
Calculation method of
distribution amountFiscal period ended December 31, 2023
(from July 1, 2023 to December 31,
2023)

JPY 17,583,734,499

JPY 19,690,532,049

JPY 8,925,773,760(JPY 1,464)

JPY 11,048,878,440(JPY 1,640)

JPY 8,657,960,739

JPY 8,641,653,609

In accordance with the distribution
policy set forth in Article 17,
Paragraph 1 of the Articles ofIncorporation of INV, the distribution
amount shall be the amount which
does not exceed the amount of profits
but exceeds 90% of the distributable
income as defined in Article 67-15 of
the Special Taxation Measures Act.
However, in the event that any tax
losses arise, or if no profits have beenrecorded for tax purposes due to tax
losses carried forward, thedistribution amount may be as
reasonably determined by INV.
Pursuant to this policy, INV
determined the distribution amountto be JPY 8,925,773,760 which is a totalof net income of JPY 8,913,742,601 andretained earnings carried forward of
JPY 12,031,159.

In accordance with the distribution
policy set forth in Article 17,
Paragraph 1 of the Articles ofIncorporation of INV, the distribution
amount shall be the amount which
does not exceed the amount of profits
but exceeds 90% of the distributable
income as defined in Article 67-15 of
the Special Taxation Measures Act.
However, in the event that any tax
losses arise, or if no profits have beenrecorded for tax purposes due to tax
losses carried forward, thedistribution amount may be as
reasonably determined by INV.
Pursuant to this policy, INV
determined the distribution amountto be JPY 11,048,878,440 which is a
total of net income of JPY
11,032,571,310 and retained earnings
carried forward of JPY 16,307,130.

- 86 -

Note
Accompanying English financial information, comprising Balance Sheet, Statement of Income andRetained Earnings, Statement of Changes in Net Assets, Notes to financial statements andStatement of Cash Distribution, have been translated from the Japanese financial statements of INV
prepared in accordance with the Act on Investment Trusts and Investment Corporations of Japan.
Under Article 130 of the Act on Investment Trusts and Investment Corporations of Japan, theJapanese financial statements for the six months ended December 31, 2023 have been audited by
Ernst & Young ShinNihon LLC, in accordance with auditing standards generally accepted in Japan.
However, English translation of the Japanese language report of independent auditors is not
attached herein since the accompanying English translation of Balance Sheet, Statement of Income
and Retained Earnings, Statements of Changes in Net Assets, Notes to financial statements andStatement of Cash Distribution is unaudited.
Regarding the English audited financial statements, please refer to the “Audited Financial
Statements” on the website of Invincible Investment Corporation: https://www.invincibleinv.co.jp/en/ir/library.html- 87 -

VII. Statement of Cash Flows (Reference Information)

Cash flows from operating activities
Net income before taxes
Depreciation and amortization
Investment unit issuance costs
Amortization of investment corporation bond issuancecosts
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 accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchases of property and equipment
Purchases of property and equipment in trust
Purchases of leasehold rights in trust
Repayments of tenant leasehold and security deposits
in trust
Proceeds from tenant leasehold and security deposits intrust
Payment of tenant leasehold and security deposits
OthersNet cash used in investing activities- 88 -

Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)(Unit: JPY thousand)Fiscal period ended
December 31, 2023
(from July 1, 2023 to
December 31, 2023)

8,914,347
3,746,513-

11,033,176
4,217,991
152,379

7,053

10,839538,693(100)
541,482(90)
537,269(905,138)
1,160,368(1)
13,731
51,048(19,097)(11,435)(1,827)(250,984)
14,321,833
100(538,660)(605)
13,782,668

620,370(138)
666,23123
30,078916,217(1,433,237)(5)(3,038,267)(3,446)8,353(238)
43,443
193,803
13,417,575
138(643,780)(605)
12,773,327

2,000,000(62,318)(965,159)-

800,000(122,052)(55,967,444)(3,055,022)(30,246)(33,591)

28,87340,318(46,500)
924,648(9,640)(95,410)(58,442,843)

Cash flows from financing activities
Proceeds from short-term loans payable
27,660,000
11,899,000
Repayments of short-term loans payable(30,722,000)(86,832,000)
Proceeds from long-term loans payable
12,317,000
129,686,000
Repayments of long-term loans payable(16,062,000)(26,343,000)
Proceeds from issuance of investment corporation
6,163,101
3,470,368
bonds
Redemption of investment corporation bonds(1,000,000)(2,000,000)
Borrowing related expenses(473,134)(2,684,150)
Payment of distributions of earnings(5,070,967)(8,922,722)
Proceeds from issuance of investment units
34,247,357
Net cash provided by (used in) financing activities(7,188,001)
52,520,852
Effect of exchange rate change on cash and cash
90
(23)
equivalents
Net increase (decrease) in cash and cash equivalents
7,519,406
6,851,312
Cash and cash equivalents at beginning of period
20,521,796
28,041,202*1
Cash and cash equivalents at end of period
28,041,202
34,892,514(Note) Statement of cash flows is prepared based on the Regulation on the Terminology, Forms, and Preparation
Methods of Financial Statements (Ministry of Finance Order No. 59 of 1963, as amended) and attached as
reference. This statement of cash flows is not subject to audit by an auditor pursuant to the Article 130 of
the Investment Trust Act, and thus has not been audited by an auditor.

[Notes Concerning Significant Accounting Policies] (Reference Information)
By Period
Item
Cash and cash equivalents asstated in Statement of Cash Flows

Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)
Cash and cash equivalents asstated in the Statement of Cash
Flows consist of cash on hand andcash in trust, floating deposits,
deposits in trust and short-term
investments that are very liquid
and realizable with a maturity of
three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

- 89 -

Fiscal period ended
December 31, 2023
(from July 1, 20233 to
December 31, 2023)
Cash and cash equivalents asstated in the Statement of Cash
Flows consist of cash on hand andcash in trust, floating deposits,
deposits in trust and short-term
investments that are very liquid
and realizable with a maturity of
three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

[Notes to Statement of Cash Flows] (Reference Information)
By Period
Item*1. Relationship between cash
and cash equivalents inStatement of Cash Flows andamounts in accompanying
balance sheet

Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)(As of June 30, 2023)(Unit: JPY thousand)Cash and bank
18,377,030
deposits
Cash and bank
10,464,171
deposits in trust
Time deposits with
(800,000)
over three months
deposit period
Cash and cash
28,041,202
equivalents

Fiscal period ended
December 31, 2023
(from July 1, 2023 to
December 31, 2023)(As of December 31, 2023)(Unit: JPY thousand)Cash and bank
21,956,120
deposits
Cash and bank
12,936,394
deposits in trust
Cash and cash
34,892,514
equivalents“My Number” is issued to all citizens and residents of Japan and is necessary for taxation
purposes on investment units. Thus, it is necessary for unitholders to notify their brokeragewith their “My Number.”
Usage of “My Number” in investment units-related affairs“My Number” is recorded on the payment record and the payment record is filed with therelevant tax authority pursuant to laws and regulations.
Major payment record*Payment record regarding cash distribution

Usage of “My Number” also includes taxation-related procedures on investment units. It
is necessary for unitholders to notify your “My Number” to your brokerage, etc.
Inquiries regarding notifying “My Number”⚫
⚫

Unitholders whose investment units are managed in brokerage accounts
Each brokerage
Unitholders who have no brokerage accountTransfer Agent Department, Sumitomo Mitsui Trust Bank, Limited
Toll-free Telephone Number 0120-782-031- 90 -Domestic Portfolio Map (As of February 29, 2024)

No. of Properties(Note 1)

134

Others(Note 1)

No. ofResidential
Properties

92

41

1

No. ofHotels(Note 1) Including Sheraton Grande Tokyo Bay Hotel, underlying assets of TMK investment.
(Note 2) For properties corresponding to the number and their overview,please refer to pages 30-36.

- 91 -

- 92 -

Financial Conditions
INV promoted extension of borrowing periods and diversification of maturity dates in addition to the issuanceof the first green bond. Furthermore, INV significantly improved its financial stability through effort toconsiderably increase its ratio of fixed interest rates.

◼ Investment Corporation Bonds (as of February 29, 2024)
Bonds name

IssuedDate

Term(years)Balance(JPY mn)

AnnualInterest Rate

Rating2nd Series Investment
Corporation Bonds

May 25, 2018

10.0

1,000

0.80%

A (JCR)

4th Series Investment
Corporation Bonds

Oct. 28, 2019

5.0

1,000

0.48%

A (JCR)

5th Series Investment
Corporation Bonds

Oct. 28, 2019

10.0

2,000

0.90%

A (JCR)

6th Series Investment
Corporation Bonds

Mar. 13, 2020

10.0

1,200

0.85%

A (JCR)

7th Series Investment
Corporation Bonds

May 25, 2023

3.0

5,000

1.00%

A (JCR)

8th Series Investment
Corporation Bonds

May 25, 2023

5.0

1,200

1.20%

A (JCR)

Sep. 21, 2023

5.0

1,700

1.20%

A (JCR)

Dec. 14, 2023

5.0

1,800

1.297%A (JCR)

Feb. 9, 2024

5.0

6,000

1.470%A (JCR)

9th Series Investment
Corporation Bonds(green bonds)
10th Series Investment
Corporation Bonds(green bonds)
11th Series Investment
Corporation Bonds(retail bonds)
Total

20,900◼ Lender Formation (as of February 29, 2024)(Total)JPY

274,240
million◼ Rating (as of February 29, 2024)
Rating Agency

Rating Object

RatingOutlookJapan Credit Rating
Agency, Ltd.

Long-term
Issuer Rating

A

Stable- 93 -

◼ LTV (based on appraisal value)(Note 1) and Weighted Average Interest Rate(Note 2)
（%）

（%）

55

2.0

50

46.8

46.6
45.1
45

43.4

44.5

44.1

45.3

44.6

44.2

1.5

47.6
45.4

44.9

44.5
42.7

40
0.50

0.50

0.51

0.52

0.53

0.53

0.55

0.54

0.53

42.2

0.63
0.51

0.49

0.48

0.45

43.1

1.0

0.69

0.5

0.43

35

0.0

◼ DSCR(Note 3)
(X)

30.0
25.0

26.0
22.2
20.2

21.4

20.7

22.2

22.0

25.2

20.8
17.6

20.0
15.0
10.0
4.7
5.0

5.7

4.5

7.5

2.4

0.0

(Note 1)

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

- 94 -

Overview of Unitholders/Investment Units

Historical Unit Price(Note)

Unit prices indicate the closing price on the TSE market.

TSE REIT Index has been indexed, assuming the closing price of TSE REIT Index as of January 4, 2013,

as the same as the closing price of INV’s unit on the same day.

Distribution of Unitholders(Note) Percentage figures are rounded to one decimal place.

Annual Schedule- 95 -

Information for Unitholders
For Unitholders
Investors’ Registry
Administrator
Special Account Management
Institution

Correspondence(Telephone Assistance)

Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo<Unitholders of the former Tokyo Growth REIT Investment Inc.>
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo<Unitholders of the former LCP Investment Corporation>
Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Transfer Agent Department, Sumitomo Mitsui Trust Bank,
Limited
2-8-4, Izumi, Suginami-ku, Tokyo, 168-0063
Toll-free Telephone Number 0120-782-031
Administrative services are available at the main and branch
offices throughout Japan of Sumitomo Mitsui Trust Bank,
LimitedNotification Process for Address Changes
Please notify your brokerage (financial instruments business operator) regarding changes to addresses, names,
registered seals, and the like. Unitholders who have special accounts instead of brokerage accounts should
contact the transfer account management institution (financial instruments business operator) below.
Unitholders of the pre-merger Investment Corporation (former Tokyo Growth REIT Investment Inc.)
Mitsubishi UFJ Trust and Banking Corporation Toll-free Number: 0120-255-100
Unitholders of the former LCP Investment Corporation
Sumitomo Mitsui Trust Bank, Limited
Toll-free Number: 0120-782-031
Dividends
Unitholders may collect “dividends” by submitting the “Dividends Receipt” at your local Japan Post Bankor at the deposit teller of a post office. In the case that the collection period has past, designate a collection
method on the back of the “Dividends Receipt,” and either mail the receipt to the Transfer Agent Departmentof the Sumitomo Mitsui Trust Bank, Limited or collect from a branch teller.
(Bank Transfers)
Should you desire to specify bank transfers for future dividends, please notify your brokerage(financial instruments business operator).
(Note)

Please collect dividends within 3 years of distribution. Please note that payments cannot be made after
3 years due to the rules and regulations of the Articles of Incorporation of the Investment Corporation.

- 96 -

Notification(Notice of Dividend Payment)
The 2008 amendment of the Special Taxation Measures Law (Act No. 23 of April 30, 2008) mandated thesending to unitholders a “Notice of Dividend Payment” stating the dividend amount, amount of taxes
withheld, and the like for dividends payable in and after January 2009. If you collect dividends via a“Dividends Receipt,” please view the “Notice of Dividend Payment” sent alongside it. If you have specified
a wire transfer, the “Dividend Statement” delivered with the dividend payment is the “Notice of Dividend
Payment.”(Characters for Addresses and Names of Unitholders)With the digitization of investment securities, if there are Chinese characters in your address or names that
the Japan Securities Depository Center (JASDEC) has not included in the transfer system, JASDEC registers
them in the Investors’ Registry by converting part or all of the characters to those that JASDEC has includedin the transfer system or to katakana. Please be aware that correspondence may be addressed using
characters that JASDEC has included in the transfer system. Please inquire with your brokerage regarding
characters registered for your address and name.
Inquiries
For inquiries regarding INV: Consonant Investment Management Co., Ltd.
TEL: 03-5411-2731 (Main)
Weekdays 9:00-17:00- 97 -