Translation

This is an English language translation of the original Japanese announcement on our Website released on August 23, 2016.
However, no assurance or warranties are given with respect to the accuracy or completeness of this English language translation. The
Japanese original shall prevail in the case of any discrepancies between this translation and the Japanese original.

Summary of Financial Results (REIT)
for the Fiscal Period Ended June 30, 2016
August 23, 2016
Name of Issuer:

Invincible Investment Corporation

Stock Exchange Listing:Tokyo Stock Exchange

Securities Code:

8963

URL

Representative:
Name of Asset Manager:
Representative:
Contact:

Naoki Fukuda, Executive Director
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Jun Komo, General Manager of Planning Department

http://www.invincible-inv.co.jp/

TEL. +81-3-5411-2731

Scheduled Date of
Scheduled Date of Filing of
Securities Report:

Commencement for Distribution
September 26, 2016

Payments:

Supplementary Materials for
Financial Results:

Yes

Presentation Meeting:Yes (for analysts and investors)

September 27, 2016

(values are rounded down to the nearest JPY million)
1.

Financial Results for the Fiscal Period ended June 30, 2016 (from January 1, 2016 to June 30, 2016)(1)

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

Fiscal period ended
June 30, 2016

JPY million

Fiscal period ended
December 31, 2015%

Operating Income

Ordinary Income

JPY million%

Net Income

JPY million%

JPY million

%

8,158

18.9

5,073

16.1

4,364

47.8

4,363

47.8

6,863

38.0

4,369

55.4

2,953

28.6

2,952

28.6

Net Income per Unit

Ordinary Income/
Total Assets

Net Income/Unitholders’ Equity

Ordinary Income/Operating Revenues

Fiscal period ended
June 30, 2016

JPY

%

%

%

1,270

3.9

1.9

53.5

Fiscal period ended
December 31, 2015

937

3.8

1.8

43.0

(Note)(2)“Net Income per Unit” is calculated based on the average number of investment units during the period and is rounded to the nearest yen. Net
income per unit calculated based on the number of investment units issued and outstanding at the end of the fiscal period ended June 30, 2016
(3,675,824units) and rounded down to yen is JPY 1,187.

Distributions
Distribution(excluding excess
profit distribution)
Per Unit

Total

Distribution(including excess
profit distribution)

Excess Profit
Distribution
Per Unit

Total

Per Unit

Dividend
Payout
Ratio

Total

Distribution/ Net
AssetsJPY

JPY million

JPY

JPY million

JPY

JPY million%%

Fiscal period ended
June 30, 2016

1,125

4,135

61

224

1,186

4,359

94.8

3.5

Fiscal period ended
December 31, 2015

948

3,027

239

763

1,187

3,790

102.5

3.7

(Note 1)

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

The amount of “Distribution per Unit (Excluding excess profit distribution per unit)” for the fiscal period ended December 31, 2015, i.e., JPY
948, is the amount calculated by adding the amount of reversal of surplus per unit, i.e., JPY 23.6, to the amount of Net Income Per Unit, i.e.,
JPY924.4 (the amount calculated based on the number of investment units issued and outstanding at the end of the fiscal period ended December
31, 2015).
The distribution per unit in excess of profit is JPY 61, of which JPY 61 is the allowance for temporary difference adjustments.
The “Dividend Payout Ratio” is calculated in accordance with the following formula:
Dividend Payout Ratio=Distribution Amount (Excluding excess profit distribution) ÷ Net Income × 100“Dividend Payout Ratio” is rounded to the nearest one decimal place.
In addition, the Dividend Payout Ratio calculated with the following formula for the period ended June 30, 2016 is 99.9%:
Dividend Payout Ratio=Distribution Amount (Including excess profit distribution) ÷ Net Income × 100“Distribution/ Net Assets” are calculated based on the figures excluding excess profit distribution.

Financial Position(3)

Total Assets
Fiscal period ended
June 30, 2016
Fiscal period ended
December 31, 2015
(Note)Net Assets

Net Assets/Total Assets

Net Assets per Unit

JPY million

JPY million%

JPY

284,106

130,00545.8

35,368

185,918

91,75849.4

28,731“Net Assets per Unit” is calculated based on the number of investment units issued and outstanding at the end of each period, and is rounded to
the nearest yen.

2

(4)

Cash Flows
Cash Flowsfrom
Operating
Activities

Fiscal period ended
June 30, 2016

Cash Flows from
Financing Activities

Closing Balance of Cashand Cash Equivalents

JPY million

JPY million

JPY million

JPY million

5,319(86,000)

83,626

16,764

4,312(43,092)

45,084

13,818

Fiscal period ended
December 31, 2015

2.

Cash Flows from
Investment Activities

Forecast for the Fiscal Period ending December 31, 2016 (from July 1, 2016 to December 31, 2016)(Percentages indicate percentage change from the preceding period)
Operating
IncomeOperating
Revenues

FiscalPeriodendingDecember31, 2016(Reference)

Ordinary
IncomeNet Income

JPY
million%JPY
million%JPY
million%JPY
million%10,015

22.8

6,417

26.5

5,872

34.6

5,872

34.6

Distribution
per
Unit(excludingexcess profit
distribution)

Excess Profit
Distribution
per Unit

Distributionper
Unit(includingexcess profit
distribution)

JPY

JPY

JPY

1,597

0

1,597

Estimated net income per unit for the fiscal period ending December 31, 2016 is JPY 1,597.

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

None(b) Changes in Accounting Policies due to Other Reasons

None(c) Changes in Accounting Estimates

None(d) Restatements

None(2) Number of Investment Units Issued and Outstanding(a) Number of Units Issued and Outstanding as of the
End of the Fiscal Period (Including Treasury Units)

June 30, 2016

3,675,824

December 31, 2015

3,193,686(b) Number of Treasury Units as of the End of the Fiscal Period

June 30, 2016

0

December 31, 2015

0(Note)

Please refer to “Notes Related to Per Unit Information” regarding the number of investment units which is the basis for the calculation of net
income per unit.

3ͤThe Implementation Status of Statutory Audit
At the time of this financial report, the audit procedures for the financial statements pursuant to the Financial Instruments andExchange Act are yet to be completed.
ͤExplanation on the Appropriate Use of the Forecast of Results and Other Matters of Special Consideration(Explanation on the Appropriate Use of the Forecast of Results)
The forward-looking statements in this financial report are based on the information currently available to us and certain
assumptions which we believe are reasonable. Actual operating performance may differ significantly due to factors wecannot predict as of this date, including gains or losses from the disposition of properties, repayment of borrowings, decreases
in rents and changes in operating conditions. Further, there is no guarantee of the payment of the forecast distribution amount.
Please refer to “Assumptions Underlying the Forecast of Financial Results and Distribution for the Fiscal Period ending December
31, 2016 (from July 1, 2016 to December 31, 2016)”, on page 17 for assumptions used in the forecasts and precautions regarding
the use of such forecasts.
Unless otherwise specified herein, amounts less than JPY 1 are rounded down, and ratios are rounded to the nearest one decimal
place.

4

1. Related Companies of the Investment Corporation
Disclosure is omitted because there have been no material changes in the “Structure of the Investment Corporation”
section of the latest securities report (filed on March 31, 2016).

2. Management Policy and Operating Conditions(1)

Management Policy

Disclosure o f “Investment Policies,” “Investment Targets,” “Distribution Policies” and the “Investment Restriction” isomitted because there have been no material changes from the relevant sections of the latest securities report (filed on
March 31, 2016)(2)

Operating Conditionsa

Overview of the Fiscal Period Ended June 2016 (“Reporting Period”)(a)Main Trends in the Investment Corporation

INV was established in January 2002 in accordance with the Investment Trust and Investment Corporation Act (Act No.
198 of 1951, as amended; the “Investment Trust Act”). In May 2004, INV was listed on the Osaka Securities Exchange(application for delisting was made in August 2007), and in August 2006 was listed on the Real Estate Investment and Trust
Securities Section of the Tokyo Stock Exchange (Ticker Code: 8963).
After the merger with LCP Investment Corporation (“LCP”) was implemented on February 1, 2010, INV issued newinvestment units through a third-party allotment on July 29, 2011 and refinanced its debt. Calliope Godo Kaisha(“Calliope”), an affiliate of the Fortress Investment Group LLC (“FIG” and together with Calliope and other affiliates of
FIG, collectively the “Fortress Group”) was the main allottee, and the sponsor changed to the Fortress Group.
Ever since the commencement of sponsorship from the Fortress Group, INV has been focusing its efforts on improving theearning power of its portfolio and establishing a revenue base in order to implement stable distributions, and has
strengthened the lender formation through new borrowings and the refinancing of existing bank borrowings, thereby
creating a financial base for future 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 (the “Asset Manager”) revised theInvestment Guidelines for INV, and 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. As a result of theexternal growth efforts, INV's portfolio at the end of the previous period ended December 2015 composed of 111 properties(37 hotels, 66 residential properties and eight others) with a total acquisition value of JPY 173,815 million, and market
capitalization at such date of JPY 224,835 million. When compared to the period as of May 22, 2014, which is the time
immediately prior to INV’s initial investment in hotels, the total acquisition value and market capitalization increased
significantly by 2.4x and 7.6x, respectively.
In the Reporting Period, INV continued its external growth efforts by completing three separate transactions to further
increase the size of the portfolio and increase earnings. On January 22, 2016, INV acquired five hotels and one residential
property with funds raised through new loans along with a portion of the cash-on-hand from the July 2015 public offering.
On March 10, 2016, INV conducted a global public offering for the third consecutive year (the "Capital Increase"), in
which it acquired four hotels and one residential property on March 31, 2016. The transaction was funded with funds raised
through the Capital Increase and new loans. In addition, INV acquired two hotels on June 15, 2016 with the cash-on-handraised through the Capital Increase and third-party allotment conducted in relation to the Capital Increase and new loans. As
a result, INV's portfolio composed of 124 properties (48 hotels, 68 residential properties and eight others) with a totalacquisition value of JPY 266,619 million and market capitalization of JPY 238,193 million at the end of the Reporting
Period.
With respect to financial management, INV took advantage of the negative interest rate policy adopted by the Bank ofJapan and executed interest rate swap agreements to fix the interest rate on a portion of its existing borrowings (the total
notional principal of which is JPY 99,119 million) on March 4, 2016. As a result, INV was able to improve its financial
stability by fixing the interest rate on 69.8% of outstanding debt from 0% at the end of the previous period.
In conjunction with the acquisition of properties on January 20, 2016 and March 10, 2016, INV expanded the pipeline for
future growth by adding new properties to the properties subject to a Memorandum of Understanding (the " MOU") withaffiliates of Fortress Group with respect to preferential negotiating rights regarding the acquisition of hotels and residential
properties. As of the end of the Reporting Period, there are 22 hotels (6,116 rooms) and nine residential properties (743units) in the MOU, which will continue to provide INV with considerable opportunity for external growth.

5

(b)

Operational Environment and Performance

In the hotel segment, the Japanese government’s promotion of tourism initiatives such as airport capacity expansion, theentry of LCC’s into the Japanese market, and the relaxation of visa requirements for some Asian countries, coupled withmacro structural changes such as a sharp increase in the number of cross-border travelers due to the global rise of the
middle-income bracket, has led to a continued increase in the number of international visitors to Japan from China andSoutheast Asian countries such as Thailand, Malaysia, the Philippines, Indonesia and Vietnam. This robust combination
helped Japan log a record high of 19.737 million visitors in 2015 (47.1% increase from the 13.413 million visitors of theprevious year), and the number of foreigners entering Japan exceeded the number of Japanese departing for the firsttime in 45 years. In the Reporting Period, regardless of the effect of the Kumamoto Earthquake and the development of
yen appreciation, the number of foreigners entering Japan during the period from January to July of 2016 logged arecord high of 14.010 million (+26.7% compared to the same period for the previous year), and demand in foreigners foraccommodations continued to increase.
Regarding INV’s hotels, in addition to the abovementioned external factors, the hotel operators adeptly captured
inbound demand through strong revenue management techniques. 39 of the hotels owned by INV (Note 1) recorded
ADR (Note 2) of JPY 9,148, RevPAR (Note 3) of JPY 8,213, and an occupancy rate (Note 4) of 89.8%. Among the 35
hotels (Note 5) in which a comparison can be made to the same period in the previous year, ADR was JPY 8,874(+8.5%), RevPAR was JPY 7,896 (+6.9%) (Note 6), with an occupancy rate of 89.0% (-1.3 points). The ratio ofoverseas sales (Note7) at the 35 hotels (Note 8) increased to 34.2% (+ 5.2 points compared to the same period for theprevious year).
With respect to the residential portfolio, market rent trends for small-type city-center properties continue to improve.
Under the positive circumstances in the macro environment, INV implemented a rent increase program for new leases
and renewals as well as an initiative to reduce residential leasing costs based on a market analysis of each unit andproperty in 2014. As a result, in the Reporting Period, INV realized a rent increase for 49.0% of the new residential
lease contracts or an average rent increase of 1.1% compared to the previous rent, and a rent increase for 42.4% of
contract renewals or an average rent increase of 1.4% compared to the previous rent, while maintaining a high contract
renewal rate of 83.6%. The average occupancy rate for the Reporting Period achieved a stable 95.7% (the average of 66
properties, excluding two properties acquired during the Reporting Period; the average occupancy rate including such
two properties was 96.3%), and the average occupancy rate of 63 properties that can be compared to the same period forthe previous year (Note 9) increased 1.8%. The NOI (Note 10) for the 63 properties (Note 9) in which previous year
comparisons can be made increased 5.1% compared to the same period for the previous year.
As a result, INV maintained a high average occupancy rate of 98.3% across the entire portfolio, and the NOI increasedby 19.7% from the previous period to JPY 7,136 million.
As a result of the internal growth and the external growth through the acquisition of properties for the Reporting Period,
the trends in the real estate investment and rental market, as well as the strong performance of the hotels, the total
appraisal value at the end of the Reporting Period was JPY 323,291 million, an increase of JPY 108,339 million(+50.4%) over the previous period. The appraisal value of 111 properties held at the end of the previous period
increased from JPY 214,952 million to 229,296 million (+6.7%), and in particular, the appraisal value of the 37 hotels
increased by JPY 13,718 million (+10.3%) year-on-year, significantly enhancing the overall portfolio asset value. The
portfolio has an unrealized gain of JPY 61,819 million (Note 11) and an unrealized gain ratio of 23.6% (Note 11) wereachieved.
(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)Of the 48 acquired hotels, the following hotels on fixed rents 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.
“ADR” means average daily rate, and is calculated by dividing total room sales (excluding service fees) for acertain period by the total number of days per room for which each room was occupied during the same period.
“RevPar” means revenue per available room per day, and is calculated by dividing total room sales for acertain 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.
“Occupancy rates” are calculated in accordance with the following formula:
Occupancy rates = total number of occupied rooms during a certain period ividing total room sales for acertain period by total number of rooms available (number oHotel Mystays Haneda and Hotel Mystays Kanazawa, for which there are no performance figures in and prior
to 2014, Hotel Mystays Shinsaibashi, which was not operated for a certain period due to renovation in 2015
(renovation period: from January 25 2015 through March 31, 2015), and Hotel Mystays Gotanda Station,
which was not operated for a certain period due to renovation in 2015 (renovation period: from March 1, 2015
through November 24, 2015) are excluded, in addition to the properties excluded per Note 1.

6

(Note 6)

The 34 properties excluded per Note 5 and Hotel Mystays Kanda, which underwent renovation for the period
from May 20, 2016 through August 22, 2016, recorded an occupancy rate of 89.1% (-1.1 points compared tothe same period for the previous year), ADR of JPY 8,876 (+8.7% compared to the same period for theprevious year), and RevPAR of JPY 7,911 (+7.5% compared to the same period for the previous year).
(Note 7) Of the 48 acquired hotels, APA Hotel Yokohama-Kannai, Hotel Nets Hakodate, 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, the tenants of which do not disclose the ratio ofoverseas sales; Hotel Mystays Gotanda Station, the prior operator of which did not calculate the ratio ofoverseas sales; and Hotel Epinard Nasu, the ratio of overseas sales of which has not been calculated for theperiod in and prior to May 2015, are excluded.
(Note 8) “Overseas sales ratio” is the ratio of sales amount through overseas web agents to revenues.
(Note 9) Of the 68 acquired residential properties, City Court Kitaichijo, Lieto Court Mukojima, Lieto Court
Nishi-Ojima, Royal Parks Momozaka and Royal Parks Shinden, which were not held by INV in the same
period in the previous year, are excluded.
(Note 10) For the comparison of NOI of the 63 properties, insurance payment as the temporary revenue and repair
expenses and other expenses that correspond to the insurance payment are excluded.
(Note 11) 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 theend of the Reporting Period(c)Overview of Fund Raising(i) Equity Finance
INV executed (i) a global public offering of investment units that closed on March 30, 2016 (number of new
investment units issued: 459,512; total issue value: JPY 36,123 million) and (ii) a third-party allotment inconjunction with the global offering that closed on April 27, 2016, (number of new investment units issued:
22,626; total issue value: JPY 1,778 million), in order to procure part of the funds for the acquisition of four
hotels and one residential property.
(ii) Debt Finance
INV implemented the borrowing of Term Loan (B) (amount borrowed: JPY 8,998 million; interest rate: variableinterest rate of one-month JPY TIBOR plus 0.40%, 0.60% and 0.20%) from Sumitomo Mitsui Trust Bank,
Limited. and Mitsubishi UFJ Trust and Banking Corporation on January 22, 2016 for use as a portion of the funds
and related expenses to acquire five hotels and one residential property.
In addition, INV introduced Development Bank of Japan Inc., etc. as new lenders and implemented the borrowingof New Syndicate Loan (F) (amount borrowed: JPY 34,418 million; interest rate: variable interest rate ofone-month JPY TIBOR (Note 1) plus 0.40%, 0.50%, 0.60% and 0.20%) on March 31, 2016, with Mizuho Bank,
Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Sumitomo Mitsui Trust Bank, Limited. as arrangers, for use as
portion of the funds and related expenses to acquire four hotels and one residential property, together with theequity finance described in (i) above.
On April 28, 2016, INV repaid the portion of New Syndicate Loan (E) in the amount of JPY 1,080 million that
corresponds to the borrowings equivalent to the expected consumption tax refund (Note 2), using the consumption
tax refunds from the 11 hotels acquired on July 16, 2015.
Furthermore, INV implemented the borrowing of Term Loan (C) (amount borrowed: JPY 3,882 million; interest
rate: variable interest rate of one-month JPY TIBOR (Note 1) plus 0.40%, 0.50%, 0.60% and 0.20%) from
Citibank Japan Ltd. on June 15, 2016 for use as a portion of the funds and related expenses to acquire two hotels.
Additionally, INV implemented the borrowing of Term Loan (D) (amount borrowed: JPY 4,000 million; interest
rate: one-month JPY TIBOR plus 0.40% and 0.60%) from Development Bank of Japan Inc. and AEON Bank, Ltd.
INV also fixed interest rates by executing the interest rate swap agreements with regard to its existing borrowing
totaling JPY 99,119 million under New Syndicate Loan (E), Term Loan (A) and a part of Term Loan (B), on
March 4, 2016, in order to prepare for future rises in interest rates. Accordingly, INV pursued the improvementof the financial stability as the ratio of fixed interest rates for the total amount of interest-bearing liabilities of INV
became 69.8%.
As a result of the above measures, INV’s interest-bearing debt outstanding balance was JPY 141,917 million andthe Interest-Bearing Debt ratio was 48.7% (Note 3) as of the end of the Reporting Period and, the average interest
rate was 0.50% (Note 4).

7

(Note 1) With respect only to the first interest calculation period, the 2-month JPY TIBOR.
(Note 2) Borrowings corresponding to the expected consumption tax refund mean the borrowings which will be
prepaid in the amount equivalent to the refund of consumption tax and local tax, which were paid in
relation to the acquisition of the trust beneficiary interests acquired by the borrowings executed at thesame time, in the case where the above-mentioned consumption tax refunds are received. The same
shall apply hereinafter.
(Note 3) The calculation for the Interest-Bearing Debt ratio uses the calculation formula below:
Interest-Bearing Debt ratio = amount of interest-bearing debt (excluding JPY 3,498 million borrowings
corresponding to the expected consumption tax refund) ÷ amount of total assets at end of the Reporting
Period x 100(Note 4) The average borrowing interest rate (annual rate) is calculated by the weighted average based on theoutstanding balance of borrowings, excluding borrowings corresponding to the expected consumption
tax refund. In addition, the said rate is rounded to two decimal places.
(d)

Overview of Acquisition of Assets

The overview of five hotels and one residential property acquired on January 22, 2016 is as follows:

Use

Property
Number
D38
D39

Hotel

D40
D41
D42

Residential

A103

Property Name
Hotel Mystays
Shinsaibashi
Comfort Hotel
KurosakiComfort Hotel
MaebashiComfort Hotel
Tsubame-Sanjo

ComfortHotel Kitami
Royal Parks
Momozaka

Location

Acquisition
Price (JPY
million)(Note 1)

Appraisal
Value (JPY
million)(Note 2)

Osaka-shi, Osaka

3,160

3,190

1,148

1,160

1,128

1,140

1,010

1,020

851

860

2,910

2,940

10,207

10,310

Kitakyushu-shi,
Fukuoka
Maebashi-shi,
Gunma
Sanjo-shi,
NigataKitami-shi,
Hokkaido
Osaka-shi, Osaka

Total

SellerCategory ofSpecified
AssetsAki Tokutei
Mokuteki Kaisha
Navaro Tokutei
Mokuteki Kaisha
Navaro Tokutei
Mokuteki Kaisha
Navaro Tokutei
Mokuteki Kaisha

Trust
BenefitInterest

Navaro Tokutei
Mokuteki Kaisha
Momo Tokutei
Mokuteki Kaisha(Note 1) Acquisition price does not include adjustments for property taxes, city planning taxes, national or local
consumption taxes; hereinafter the same.
(Note 2) The appraisal value is based on that as of November 20, 2015 by reports of the Japan Real Estate Institute,
Daiwa Real Estate Appraisal Co., Ltd. and Morii Appraisal & Investment Consulting, Inc.

8

The overview of four hotels and one residential property acquired on March 31, 2016 is as follows:

Use

Property
Number

Property Name

D43

Hotel Mystays
Gotanda Station

D44

Hotel Epinard
Nasu

Location

Acquisition
Price (JPY
million)Appraisal
Value (JPY
million)(Note 1)

SellerShinagawa-ku, Tokyo

24,67424,800

Tsuki Tokutei
Mokuteki Kaisha

21,300

Septentrio Tokutei
Mokuteki Kaisha
Septentrio 2
Tokutei Mokuteki
KaishaSeptentrio 3
Tokutei Mokuteki
KaishaNasu-gun,Tochigi

20,981

Hotel

Residential

D45

Hotel MyStays
Fukuoka Tenjin

Fukuoka-shi,
Fukuoka

8,059

8,100

Navaro Tokutei
Mokuteki Kaisha

D46

Hotel MyStays
Hamamatsucho

Minato-ku,
Tokyo

7,959

8,000

Navaro Tokutei
Mokuteki Kaisha

A104

Royal Parks
ShindenAdachi-ku,
Tokyo

5,024

5,100

Momo Tokutei
Mokuteki Kaisha

66,69767,300

Total

CategoryofSpecified
Assets

Trust
BenefitInterest(Note 1) The appraisal value is based on that as of November 20, 2015, January 1, 2016 and January 31, 2016 by reportsof Morii Appraisal & Investment Consulting, Inc.
The overview of two hotels acquired on June 15, 2016 is as follows:

Use

Location

Acquisition
Price (JPY
million)Appraisal
Value (JPY
million) (Note
1)

Hotel
MystaysKanazawa

Kanazawa-shi,Ishikawa

13,761

13,900

Takamatsu
Tokyu
REI Hotel

Takamatsu-shi,
Kagawa

2,139

2,160

15,90016,060Property
Number

Property
Name

D47
Hotel
D48

Total

SellerCategoryofSpecified
AssetsGinga Tokutei
Mokuteki
KaishaWakuseiTokutei
Mokuteki
KaishaTrust
Beneficial
Interest(Note 1) The appraisal value is based on that as of May 31, 2016 by reports of Morii Appraisal & Investment Consulting,
Inc. and Daiwa Real Estate Appraisal Co., Ltd.

9

(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 1,294
million from the previous period (+18.9%) to JPY 8,158 million, and net income increased by JPY 1,410 million fromthe previous period (+47.8%) to JPY 4,363 million. DPU for the Reporting Period was JPY 1,186, a decrease of JPY 1(-0.1%) compared to the same period for the previous year.
With respect to distributions, INV includes profit distributions in deductible expenses in accordance with Section 1 of
Article 67-15 of the Act on Special Taxation Measures Law. Profit distributions (not including distributions in excess
of profit) declared for the six months ended June 30, 2016 were ¥4,135,302,000 which were all profit as defined in
Article 136, Paragraph 1 of the Investment Trust Act, except for fractional distribution per unit less than JPY 1. In
addition, INV makes distributions in excess of profit considering the effect of items deducted from net assets anddistributions in excess of profit for the six months ended June 30, 2016 were ¥224,225,264, which corresponds to¥227,532,553 of deferred losses on hedges at the end of Reporting Period divided by the number of outstanding units(except for fractional distribution per unit in excess of profit less than JPY 1). All of the distributions in excess of
profit for the six months ended June 30, 2016 amounting to ¥224,225,264 consist only of allowance for temporary
difference adjustments. As a result, the distribution per unit for the Reporting Period is JPY 1,186.
In addition, INV has decided not to conduct the excess profit distribution via return of capital for the Reporting Period,
which was announced in the release “Notice concerning Revision of Forecast of Financial Results and Distribution forthe 26th Notice concerning Revision of Forecast of Financial Results and Distribution for the 26th” on March 10, 2016,
since the sum of adjustment accounts has no discrepancy between tax and accounting profits which can incur taxation.
b

Outlook for the Fiscal Period Ending December 31, 2016
Future operational policy and issues to be addressed

Since July 2011, INV has enhanced unitholder value by significantly increasing DPU with the Fortress Group as its
sponsor. Going forward, INV will implement various strategies to maintain further growth, including the following
measures.
• Continuous acquisition of properties from sponsor and third parties• Further internal growth at hotel properties• Obtain credit rating• Diversification of financing measures, including the issuance of invest corporation bonds
Details of the future growth strategy are as follows.
(i) External growth strategy
New Property Acquisitions
As its basic strategy, INV will move forward with the acquisition of new properties focusing on hotels, wherecontinued growth in portfolio revenues is anticipated. INV will also acquire a certain proportion of residential
properties and hotels using fixed rent schemes, which contribute to stable revenue. This acquisition strategy will
enable INV to build a portfolio with a good balance between growth and stability.
In regards to hotels, INV will take into consideration the trends in foreign travelers visiting Japan, demands ofbusiness and leisure customers, the competitive hotel environment, and leasing contract types when making
investment decisions, with the aim of acquiring properties where growth and stability of gross operating profit(GOP) and rental revenue are forecasted to increase.
In regards to residential properties, INV will analyze occupancy rates, rental market trends, the presence ofcompeting properties and other factors, and consider acquiring mainly small-type properties in large cities withstrong competitiveness. In addition, INV will consider acquiring family-type properties in the case where it isdetermined by INV to be beneficial to portfolio diversification regarding residential properties.
In recent years, the property acquisition environment has become increasingly severe, however, INV, as shown
below, has continued to achieve steady external growth from the pipeline of the sponsor, the Fortress Group.

10Properties Acquired from affiliates of the Fortress Group
Date

Properties acquired

Total acquisition price

September 2012
May 2014
July 2014
February 2015

24 residential properties
Two hotels
18 hotels
Two hotels
11 hotels andthree residential properties
One hotel
Five hotels andone residential property
Four hotels andone residential property
Two hotels
74 properties(of which 29 are residential and
45 are hotels)

JPY 14,043 million
JPY 5,435 million
JPY 39,938 million
JPY 4,911 million

July 2015
August 2015
January 2016
March 2016
June 2016
Total

JPY 35,258 million
JPY 5,069 million
JPY 10,207 million
JPY 66,697 million
JPY 15,900 million
JPY 197,458 million(of which residential: JPY 27,076 million;
hotels: JPY 170,382 million)

The Fortress Group manages four dedicated Japanese real estate funds, including the Fortress Japan Opportunity
Funds I and II. The Fortress Group’s committed equity is over JPY 300 billion and the number of properties that
the Fortress Group is invested in exceeds 1,400. In order to ensure future growth options for the portfolio, INV
entered into an updated MOU with the Fortress Group that provides preferential negotiation rights with respect tothe acquisition of 22 hotels and nine residential properties (see the table below) (Note 1). As a result of theacquisition of two properties as of June 15, 2016, the properties with preferential negotiation rights as of the date ofthis document are as set forth below.
In addition, by utilizing the property transaction information available through the Fortress Group and INV’s own
network, INV will continuously consider and implement the acquisition of properties from third parties that willcontribute to stability and growth in revenue and cash flow and an increase in DPU.

11

Asset Type (Note 6)

Location

No. of Rooms

Limited Service Hotel

Minato-ku,Tokyo

327

Limited Service Hotel

Yokohama-shi, Kanagawa

166

3 Rihga Royal Hotel Kyoto (Note 3)

Full Service Hotel

Kyoto-shi, Kyoto

489

4 Narita Excel Hotel Tokyu

Full Service Hotel

Narita-shi, Chiba

706

5 Art Hotels Sapporo

Full Service Hotel

Sapporo-shi, Hokkaido

418

6 Best Western Hotel Fino Sapporo

Limited Service Hotel

Sapporo-shi, Hokkaido

242

7 Best Western Hotel Fino Oita

Limited Service Hotel

Oita-shi, Oita

145

8 Hotel Naqua City Hirosaki

Full Service Hotel

Hirosaki-shi, Aomori

134

No.

Asset Name

1 Hotel MyStays Premier Akasaka
2

Hotel MyStays Yokohama-Kannai(Note 2)9 Beppu Kamenoi Hotel

Resort Hotel

Beppu-shi, Oita

322

10 Fusaki Resort Village Ishigaki-jima

Resort Hotel

Ishigaki-shi, Okinawa

195

Full Service Hotel

Urayasu-shi, Chiba

1,016

Limited Service Hotel

Osaka-shi, Osaka

397

Full Service Hotel

Asahikawa-shi, Hokkaido

265

Limited Service Hotel

Kanazawa-shi, Ishikawa

206

15 Hotel JAL City Matsuyama

Full Service Hotel

Matsuyama-shi, Ehime161

16 Hotel MyStays Ueno East

Limited Service Hotel

Taito-ku, Tokyo

150

Limited Service Hotel

Osaka-shi, Osaka

120

Limited Service Hotel

Sapporo-shi, Hokkaido

86

Limited Service Hotel

Yokohama-shi, Kanagawa

70

Limited Service Hotel

Taito-ku, Tokyo

161

21 Art Hotels Hamamatsucho

Limited Service Hotel

Minato-ku, Tokyo120

22 Art Hotels Ohmori

Limited Service Hotel

Shinagawa-ku, Tokyo

220

Sheraton Grande Tokyo Bay Hotel(Note 4)
Hotel MyStays Shin-Osaka
12
Conference Center11

13 Art Hotels Asahikawa
14 Hotel MyStays Kanazawa Castle(Provisional Name) Hotel MyStays
17
Hommachi 3-chome (Osaka) (Note 5)
Hotel MyStays Sapporo Nakajima
18Park
19 Flexstay Inn Sakuragicho
20

MyCUBE by MYSTAYS Asakusa
KuramaeHotel Subtotal

6,116

23 Gran Charm Hiroo

Residential/Small TypeShibuya-ku, Tokyo

121

24 Plestay Win Kinshicho

Residential/Small Type

Sumida-ku, Tokyo92

25 Gran Charm Kichijoji

Residential/Small TypeMusashino-shi, Tokyo

28

26 Green Patio Noda

Residential/Small Type

Noda-shi, Chiba

240

27 Dainichi F-45

Residential/Small Type

Urayasu-shi, Chiba

54

28 Gran Charm Urayasu

Residential/Small Type

Urayasu-shi, Chiba

54

29 Gran Charm Urayasu 5

Residential/Small Type

Urayasu-shi, Chiba

54

30 Gran Charm Minami Gyotoku I

Residential/Small Type

Ichikawa-shi, Chiba

52

31 Gran Charm Minami Gyotoku II

Residential/Small Type

Ichikawa-shi, Chiba

48

Residential Property Subtotal

12

743

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

The term of validity of the MOU is from March 10, 2016, the date of execution of the new MOU, to March 9,
2017. Regarding the 31 properties listed above, there is no guarantee that INV will be granted an
opportunity for considering acquisition of the properties or be able to acquire the properties.
Hotel MyStays Yokohama-Kannai is scheduled to be completed in September 2016, and is scheduled to open
in October 2016.
Rihga Royal Hotel Kyoto is scheduled to partially reopen on September 8, 2016 after renewal and fully
reopen on November 1, 2016.
Extension work regarding the Annex site of Sheraton Grande Tokyo Bay Hotel is now underway and isscheduled to be completed in December 2016.
(Provisional Name) Hotel MyStays Hommachi 3-chome (Osaka) is scheduled to be completed in October
2017, and is scheduled to open in December 2017.
Each “Asset Type” above is as follows:“Limited Service Hotel” refers to a hotel focusing on revenues from room stay and offer limited service
regarding foods and beverages, banquet, spa or gymnasium facilities.
“Full Service Hotel” refers to a hotel having sections of stay, foods and beverages, and banquet.
“Resort Hotel” refers to a hotel located at tourist destinations or recreational lots, having sections of stay,foods and beverages, and incidental facilities.
“Small Type” refers to a residential property in which the majority of dwelling units are less than 30 m2.

Property Sales
While INV places priority on increasing unitholders’ value through external growth by taking into account the increased
level of activity in the real estate trading market, it also plans to consider the possibility of property sale and replacement
upon consideration of the portfolio sector composition, geographic distribution and competitiveness of each property, as
appropriate.
(ii) Strategy for internal growth(Hotels)
Of the 48 hotels owned by INV as at the end of the Reporting Period, 39 hotels use a variable rent scheme. In thevariable rent scheme, in principle, INV receives gross operating profit (GOP) after deducting management fees forthe hotel operator, and INV’s variable rent scheme is set up so that INV can directly enjoy the hotel revenue upside.
For 33 hotels, MYSTAYS HOTEL MANAGEMENT Co., Ltd., a hotel operator in the sponsor group, has
implemented strict revenue management seeking to maximize revenue. INV will continue to accurately ascertain
and analyze operating conditions of its hotels, the conditions of nearby hotels, market trends and other factors
through operation meetings and other contact with hotel operators and will focus on operations that maximize rent
income.
(Residential properties and others)
INV will continue to strengthen its collaborative ties with Property Management (PM) companies and brokers tofurther boost occupancy rates and earning capabilities of its properties. With respect to INV’s residential properties,
while keeping in mind the off-season in the residential rental market that occurs during the fiscal period ending
December 2016, INV will focus on increasing an occupancy rate, rent for new lease contracts as well as for leaserenewals for each of its properties as well as formulating net leasing management policies in order to continue
maximizing profits.
Further, the implementation of appropriate maintenance and repair plans is of the utmost importance in maintaining
and enhancing the competitiveness and market value of the properties as well as ensuring stable operations andhigh tenant satisfaction. Therefore, INV will continue to monitor current strategic plans with flexible
implementation as it sees fit.
(iii) Financial strategy
INV has strengthened its lender formation via the new borrowings in conjunction with the public offering
implemented in March 2016 and the new borrowings implemented in January 2016 and June 2016, to further
stabilize its financial base. Going forward, INV will work on diversifying financing measures, including issuinginvestment corporation bonds, as well as obtaining a future credit rating. Also, INV seeks to maximize unitholders’value by way of lengthening and diversification of borrowing terms, further reduction of borrowing costs,
solicitation of new financial institutions and strengthening of its lender formation.

13

(iv) Compliance risk management
While the executive officer of INV concurrently serves as the representative director at the Asset Manager, two
supervisory directors (an attorney and a certified public account) oversee the execution of the executive officer’s duties
via the Board of Directors of INV. In addition, the compliance officer of the Asset Manager attends each meeting of theBoard of Directors in the capacity of an observer.
The Asset Manager has a compliance officer who is responsible for compliance with laws, regulations and otherrelevant 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 compliance with 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 compliance committee member, conducts
rigorous deliberations on the existence of conflicts of interest in transactions with sponsor related parties as well as strict
examinations with respect to INV’s compliance with laws and regulations.
INV intends to continually take steps to strengthen its compliance structure.
c

Significant Subsequent Events
Borrowing of Funds
INV implemented the new borrowings described in the following table on July 20, 2016 for use as a portion of thefund and related expenses to acquire properties described in “a. Overview of the Reporting Period (d) Overview ofAcquisition of Assets” above.
Term Loan (E)Lender

The Tokyo Star Bank,
Limited

Total(Note 1)
(Note 2)
(Note 3)

Borrowing
Date

BorrowingAmount(JPY million)

Interest Rate(per annum)

Principal
Maturity
Date

Borrowing
MethodJuly 20,
2016

700

Variable interest rate
(Note 1)

July 20, 2019

Unsecured /non guarantee

July 20,
2016

1,600

Variable interest rate
(Note 2)

July 20, 2020

Unsecured /non guarantee

July 20,
2016

1,700

Variable interest rate
(Note 3)

July 20, 2021

Unsecured /non guarantee

4,000

1-month JPY TIBOR (Base Rate) + spread (0.4%)
1-month JPY TIBOR (Base Rate) + spread (0.5%)
1-month JPY TIBOR (Base Rate) + spread (0.6%)

14

(Reference Information)
Loan Transfer with respect to Existing LoansINV decided on July 15, 2016 to consent to the transfer of a portion of its existing loans from Mizuho Bank, Ltd. as
follows.
(1) Financial institution transferring INV’s loan:
Mizuho Bank, Ltd.
(2) Financial institution to which INV’s loan is transferred to:Japan Post Bank Co., Ltd.
(3) Loan to be transferred:
A total amount of JPY 4,000 million of the New Syndicate Loan (F) as announced in the release “Noticeconcerning Debt Financing” on March 10, 2016, which is the sum of (a) JPY 2,000 million of the loan held byMizuho Bank, Ltd. (original principal amount: JPY 4,465 million), out of the three-year loan amounting JPY
11,434 million and (b) JPY 2,000 million of the loan held by Mizuho Bank, Ltd. (original principal amount:
JPY 4,465 million), out of the four-year loan amounting JPY 10,433 million(4) Date of loan transfer agreement:
July 15, 2016
(5) Date of transfer:
July 15, 2016
In addition, INV decided on July 27, 2016 to consent to the partial transfer of its existing loans from Mizuho Bank,
Ltd. as follows.
(1) Financial institution transferring INV’s loans:
Mizuho Bank, Ltd.
(2) Financial institutions to which INV’s loans are transferred to:
The Kagawa Bank, Ltd., The Shizuoka Bank, Ltd., The Hyakugo Bank, Ltd., and The Bank of Fukuoka, Ltd.
(3) Loans to be transferred:
A total amount of JPY 4,000 million of the New Syndicate Loan (F) as announced in the release “Noticeconcerning Debt Financing” on March 10, 2016. The breakdown of loans is as follows.
(i)

The Kagawa Bank, Ltd.
The sum of (a) JPY 500 million of the loan held by Mizuho Bank, Ltd. (principal amount: JPY 2,465
million), out of the four-year loan amounting JPY 10,433 million and (b) JPY 500 million of the loan
held by Mizuho Bank, Ltd. (principal amount: JPY 4,465 million), out of the five-year loan amounting
JPY 10,433 million(ii)

The Shizuoka Bank, Ltd.
JPY 1,000 million of the loan held by Mizuho Bank, Ltd. (principal amount: JPY 2,465 million), out of
the three-year loan amounting JPY 11,434 million(iii) The Hyakugo Bank, Ltd.
JPY 1,000 million of the loan held by Mizuho Bank, Ltd. (principal amount: JPY 2,465 million), out of
the four-year loan amounting JPY 10,433 million(iv) The Bank of Fukuoka, Ltd.
JPY 1,000 million of the loan held by Mizuho Bank, Ltd. (principal amount: JPY 4,465 million), out of
the five-year loan amounting JPY 10,433 million(4) Date of loan transfer agreements:
July 27, 2016
(5) Date of transfer:
July 29, 2016
There is no change to the content of the loan agreements, including the loan terms and conditions due to the loantransfer.
As a result, the number of lenders has increased from 15 to 17 after the loan transfer above, and INV’s lenderformation has been further strengthened.

15

dOperational Outlook
The following forecast is made for the fiscal period ending December 31, 2016.
Fiscal Period ending December 31, 2016 (from July 1, 2016 to December 31, 2016)
Operating Revenues

JPY 10,015million

Operating Income

JPY 6,417 million

Ordinary Income

JPY 5,872 million

Net Income

JPY 5,872 million

Earnings per Unit

JPY 1,597

Reversal of Surplus per Unit-

Distribution per Unit (Excluding excess profit distribution per unit)
Excess Profit Distribution per Unit

JPY 1,597-

Distribution per Unit (Including excess profit distribution per unit)

JPY 1,597

For the assumptions underlying the operational outlook for the fiscal period ending December 31, 2016, please see“Assumptions Underlying the Forecast of Financial Results and Distribution for the Fiscal Period ending December
31, 2016 (from July 1, 2016 to December 31, 2016)”.
(Cautionary Note regarding Forward Looking Statements)
Forward looking statements such as the forecasts set forth herein are based on information currently available andcertain assumptions that are deemed reasonable. Actual operating performance may vary significantly due tofactors not foreseen at the time of this present notice, such as the occurrence of gains and losses associated with thesale of properties, repayment of borrowings and a decrease in rent received. Also, this forecast is not a guarantee of
distribution amounts.

16

<Assumptions Underlying the Forecast of Financial Results and Distribution for the Fiscal Period ending December 31, 2016 (fromJuly 1, 2016 to December 31, 2016)>
Item
Fiscal period

Assumptions
The December 2016 Fiscal Period: from July 1, 2016 to December 31, 2016 (184 days)
Properties held as of the end of the December 2016 Fiscal Period: 124 properties

Assets under management

The assets under management are based on the 124 properties held by INV as of today and INV
assumes that there will be no change such as acquisition of new properties or disposal ofproperties held by INV through the end of the fiscal period ending December 2016.

As of the end of the December 2016 Fiscal Period: 3,675,824 units
The total number of units
INV assumes that there will be no additional issuance of units through the end of the fiscal period
outstanding
ending December 2016.
Balance as of the end of the December 2016 Fiscal Period: JPY 142,419 million (Note)

Interest-bearing liabilities(Note) Out of JPY 145,917 million of the interest-bearing liabilities as of today, JPY 3,498 millionof consumption tax loan is assumed to have been repaid during the fiscal period ending
December 2016.
INV assumes that there will be no other borrowings or prepayments through the end of the fiscal
period ending December 2016.
INV expects to record rental revenues as follows:

Operating revenues

The December 2016 Fiscal Period
JPY 10,015 million(JPY 6,844 million)(JPY 3,232 million)(JPY 3,611 million)

・Rental revenues(of these, hotel rents)(of these, hotel fixed rents)(of these, hotel variable rents)

Rental revenues in the fiscal period ending December 2016 are calculated based on estimates asof today from July 2016 to December 2016. In addition, INV assumes there will be nodelinquencies or non-payment of rent by tenants.
INV expects to incur property related expenses as follows:

Operating expenses

・Facility management fees(of these, repair costs)
・Taxes and other dues・Insurance expenses
・Depreciation expenses
・Other expenses
Total property related expenses

The December 2016 Fiscal Period
JPY 613 million(JPY 33 million)
JPY 349 million
JPY 11 million
JPY 2,060 million
JPY 168 million
JPY 3,203 million

INV expects to incur other operating expenses than the property related expenses as follows:
The December 2016 Fiscal Period
・Other operating expenses

JPY 394 million(of these, asset management fees)

17(JPY 250 million)

Item

Net Operating Income

Assumptions
The December 2016 Fiscal Period
JPY 8,872 million(JPY 6,554 million)

・NOI(of these, hotel NOI)NOI is calculated based on the formula as follows.
NOI = rental revenues - property related expenses + depreciation expenses

INV expects to incur non-operating expenses:

Non-operating expenses

The December 2016 Fiscal Period
JPY 362 million

・Interest expense
・Finance related costs

JPY 181 million

Total Non-operating expenses

JPY 544 million

The distribution per unit is calculated in accordance with the cash distribution policy as set forthin INV’s Articles of Incorporation.

Distribution per unit

For the fiscal period ending December 31, 2016, INV expects to record deferred loss/gain on
hedge of the interest rate swap as the valuation and conversion adjustments, etc. of JPY 227
million, which is equal to the amount for the fiscal period ended June 30, 2016. The distribution
per unit is calculated based on the assumption that fluctuation of the market value of the interest
rate swap does not affect the distribution per unit.
Distribution per unit may vary due to various factors, including changes of the assets undermanagement, fluctuation of rent income associated with reasons such as change of tenants andoccurrences of unexpected repairs.

Excess profit distribution
per unit

INV expects to make no excess profit distribution as allowance for temporary difference
adjustments for the fiscal period ending December 2016 because excess profit distribution is
calculated based on the assumption that there is no fluctuation in the market value of the interest
rate swap.

Other

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

18

3. Financial Statements(1)

Balance Sheet(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)

Fiscal Period ended
December 31, 2015(as of December 31, 2015)
AssetsCurrent assets:
Cash and bank deposits
Cash and bank deposits in trust
Accounts receivable
Rental receivables
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts

7,885,398
5,933,582
124
1,069,352
241,931928,02535(2,494)

11,322,762
5,441,316
201
1,375,846
394,524
2,672,787
35(2,764)

16,055,955

21,204,709

85,914(9,407)85,914(9,948)76,50775,965

Buildings and accompanying facilities, at cost
Accumulated depreciation

38,862(20,593)

38,862(21,375)

Buildings and accompanying facilities, net

18,26817,4872,779(1,335)2,779(1,401)

1,443

1,377

Land
Buildings in trust, at cost
Accumulated depreciation

711,834
65,882,282(4,510,729)

711,834
101,837,752(5,539,382)

Buildings in trust, net
Buildings and accompanying facilities in trust,at costAccumulated depreciation
Buildings and accompanying facilities intrust, net
Structures in trust, at cost

61,371,553

96,298,370

15,364,500

23,193,164(3,006,062)(3,592,722)

12,358,438

19,600,442

Total current assets
Non-current assets:
Property and equipment
Buildings, at cost
Accumulated depreciation
Buildings, net

Structures, at cost
Accumulated depreciation
Structures, net

327,632

336,691

Accumulated depreciation(138,040)(147,949)

Structures in trust, net

189,591

188,742

Tools, furniture and fixtures in trust, at cost
Accumulated depreciation

401,404(150,073)

500,608(179,738)

Tools, furniture and fixtures in trust, net

251,331

320,869

Land in trust
Construction in progress in trust

88,435,785-

135,384,518
46,368

Total property and equipment, net

163,414,753

252,645,976

Intangible assets
Leasehold rights in trust
Other

5,836,789
15

8,871,542-

Total intangible assets

5,836,804

8,871,542

39,518613,914

Investment and other assets
Guarantee deposits
19

Fiscal Period ended
December 31, 2015(as of December 31, 2015)
Long-term prepaid expenses
Other

533,40938,429Total investments and other assets
Total non-current assets
Total assets

20(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)
729,351
40,640611,357

1,383,905

169,862,915

262,901,424

185,918,871

284,106,133

(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)

Fiscal Period ended
December 31, 2015(as of December, 2015)
Liabilities
Current liabilities:
Accounts payable
Short-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Total current liabilities
Non-current liabilities:
Long-term loans payable
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Derivatives liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity:
Unitholders’ equity
Surplus:Capital surplus
Deduction of capital surplus
Capital surplus, net
Voluntary retained earnings:
Reserve for temporary differences
adjustments
Voluntary retained earnings
Retained earnings
Total surplus
Total unitholders’ equity
Valuation and translation adjustments:
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

21

136,766
1,080,000
47,597
134,010564
473,164
23,043

188,3623,498,000
8,957,286
186,571605
507,135
21,072

1,895,146

13,359,034

90,619,000
1,617,867
28,663-

138,419,000
2,035,843
28,663
227,532
31,05092,265,530

140,742,089

94,160,677

154,101,123

82,465,438

120,367,271

6,264,432-

6,264,432(763,290)

6,264,432

5,501,141-※1 708-708

3,028,323

4,363,420

9,292,755

9,865,270

91,758,194

130,232,542-(227,532)-(227,532)※2 91,758,194※2 130,005,009

185,918,871

284,106,133

(2)Statement of Income(Unit: JPY thousand)Fiscal Period ended
June 30, 2016
(from January 1, 2016
to June 30, 2016)

Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)
Operating revenue
Rental revenue
Total operating revenue
Operating expenses
Property related expenses
Asset management fees
Directors’ compensation
Asset custody fees
Administrative service fees
Provision of allowance for doubtful accounts
Other
Total operating expenses※1 6,863,775※1 8,158,220

6,863,775

8,158,220※1 2,178,165※1 2,697,986

180,000
4,800
6,794
25,17058
99,677250,000
4,800
9,128
24,010269
98,1202,494,667

3,084,315

4,369,108

5,073,905

814
936
454

1,316
1,372
213

Total non-operating income

2,205

2,902

Non-operating expenses
Interest expenses
Loan-related costs
Investment unit issuance costs

296,892
982,261
138,866

295,185
280,326
137,270

Total non-operating expenses

1,418,020

712,782

Ordinary income

2,953,293

4,364,025

Income before income taxes

2,953,293

4,364,025

Operating income
Non-operating income
Interest income
Interest on tax refund
Other

Income taxes

605

605

Total income taxes

605

605

Net income

2,952,688

4,363,420

Retained earnings brought forward
Unappropriated retained earnings

75,634
3,028,323

4,363,420

22

(3)

Statement of Changes in Net Assets

Fiscal Period ended December 31, 2015 (from July 1, 2015 to December 31, 2015)(Unit: JPY thousand)Unitholders’ Equity
Unitholders’EquityBalance at the beginningof the period

53,096,413

SurplusCapital Surplus

Retained Earnings

6,264,432

2,370,704

Total Surplus
8,635,136

Total Unitholders’EquityTotal Net Assets

61,731,550

61,731,550

29,369,025

29,369,025

Changes during the period
Issuance of new
investment units

29,369,025

Dividends from surplus(2,295,069)(2,295,069)(2,295,069)(2,295,069)

Net income

2,952,688

2,952,688

2,952,688

2,952,688

Total changes during theperiodBalance at the end of theperiod29,369,025－

657,618

657,618

30,026,643

30,026,643

82,465,438

6,264,432

3,028,323

9,292,755

91,758,194

91,758,194

23

Fiscal Period ended June 30, 2016 (from January 1, 2016 to June 30, 2016)(Unit: JPY thousand)Unitholders’ Equity
SurplusCapital Surplus

Unitholders’EquityBalance at the beginningof the period
Changes during theperiodIssuance of new
investment units
Dividends in excess ofretained earnings
Reserve for temporary
difference adjustment
Dividends fromsurplus

Voluntary retained earnings

Capital Surplus

Deduction from
capital surplus

Capital surplus(Net)

6,264,432－

6,264,432(763,290)(763,290)

82,465,438

Reserve fortemporarydifference
adjustment

Voluntary
retained earnings
－

－

708

708

37,901,832

Net income
Net changes otherthan unitholders’equityTotal changes during theperiodBalance at the end of theperiod37,901,832－(763,290)(763,290)

708

708

120,367,271

6,264,432(763,290)

5,501,141

708

708

Valuation and conversion
adjustments, etc.

Unitholders’ Equity
Surplus
UnappropriatedRetained
Earnings/Loss
Balance at the beginningof the period
Changes during theperiodIssuance of new
investment units
Dividends in excess ofretained earnings
Reserve for temporary
difference adjustment
Dividends fromsurplus
Net income
Net changes otherthan unitholders’equityTotal changes during theperiodBalance at the end of theperiod

3,028,323

Total surplus

Total Unitholders’ Deferred gains orEquitylosses on hedges

Total valuation and Total Net Assets
translation
adjustments

9,292,755

91,758,194－

37,901,832

37,901,832(763,290)(763,290)(763,290)

(708)

－

－

－

(3,027,614)(3,027,614)(3,027,614)(3,027,614)

4,363,420

4,363,420

4,363,420

4,363,420－－

91,758,194(227,532)(227,532)(227,532)

1,335,097

572,515

38,474,348(227,532)(227,532)

38,246,815

4,363,420

9,865,270

130,232,542(227,532)(227,532)

130,005,009

24

(4)

Statement of Cash Distribution

Fiscal Period ended June 30, 2016
Fiscal Period ended December 31, 2015
(from July 1, 2015 to Deceember 31, 2015) (from January 1, 2016 to June 30, 2016)
I

Unappropriated retained earnings

II

Reversal of voluntary retained
earnings
Reversal of reserve for temporary
difference adjustment
Distribution in excess of retained
earnings
Allowance for temporary
difference adjustment

III

JPY 3,028,323,270

JPY 4,363,420,951-

JPY 708,942-

JPY 224,225,264

JPY 763,290,954-

JPY 3,790,905,282

JPY 4,359,527,264

JPY 1,187

JPY 1,186

JPY 3,027,614,328

JPY 4,135,302,000

JPY 948

JPY 1,125-

JPY 224,225,264-(JPY 61)

Deduction from capital surplus
IV Distributions(Distribution per unit)
Of which, distributions ofearnings(Distributions of earnings perunit)
Of which, allowance foradjustment for temporary
difference(Distributions in excess of net
earnings per unit (Allowance foradjustment for temporary
difference))
Of which, distributions in excess
of net earnings(Distributions in excess of net
earnings per unit (Other
distributions in excess of net
earnings))

JPY 763,290,954-

JPY 239-

Reserve for temporary difference
adjustment

JPY 708,942-

VI Retained earnings carried forward-

JPY 228,827,893

In accordance with the distribution
policy set forth in Article 17, Paragraph
1 of the Articles of Incorporation of
INV, the distribution amount shall be theamount which does not exceed theamount of profits but exceeds 90% of
the distributable profit as defined in
Article 67-15 of the Special Taxation
Measures Act. However, in the eventthat any tax losses arise, or if no profits
have been recorded for tax purposes due
to tax losses carried forward, thedistribution amount may be as reasonably
determined by INV. Pursuant to thispolicy, INV determined the distribution
amount to be JPY 3,027,614,328 out of
the unappropriated retained earnings of
JPY 3,028,323,270. Moreover, INV

As shown above, the distribution perunit for the Reporting Period is JPY
1,186.
With respect to profit distributions (notincluding distributions in excess of
profit), INV decided to distribute almost
all of its profit as defined in Article 136,
Paragraph 1 of the Investment Trust Act,
other than fractional amount per unit lessthan JPY 1, aiming to include themaximum amount of profit distributions
in deductible expenses in accordancewith Article 67-15, Paragraph 1 of the
Act on Special Taxation Measures (ActNo. 26, 1957). As a result, thedistribution of earnings per unit (notincluding distributions in excess of profit
per unit) is JPY 1,125.

V

Voluntary retained earnings

Calculation method of distribution
amount25

make excess profit distribution (refundof investment), based on policy on the
distribution of funds as set forth in
Article 17, Paragraph 4 of the Articles ofIncorporation. Based on such policy,
INV declared a distribution (refund ofinvestment) of JPY 763,290,954, whichistheamountequivalent
toapproximately 60% of the depreciation
expense of JPY 1,275,714,057.

26

In addition, in accordance with the
distribution policy as set forth in the
Articles of Incorporation, INV makes
distributions in excess of earnings of theamount that it determines as the amountequivalent to items deducted from net
assets (as set forth in Article 2,
Paragraph 2, Item 30 (b) of theOrdinanceon
Accountingsof
Investment Corporations), taking into
consideration the effect of the items
deducted from net assets on the
distributions (the “Excess Profit
Distribution”). For the Reporting Period,
INV makes Distribution in excess ofearnings of JPY 227 million,
corresponding to deferred losses onhedges, of which, the distribution ofallowance for temporary difference
adjustment is JPY 224 million, and the
distribution per unit of the allowance fortemporary difference adjustment is JPY
61.

(5)

Statement of Cash Flows
Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)

Cash flows from operating activities
Net income before taxes
Depreciation and amortization
Investment unit issuance costs
Loan-related costs
Interest income
Interest expenses
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in rental receivable
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Others, net(Unit: JPY thousand)Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)

2,953,293
1,275,744
138,866
982,261(814)
296,89258(431,538)(611,612)(25,114)
1,989(9,097)52,504
12,9354,131

4,364,025
1,676,751
137,270
280,326(1,316)295,185269(306,493)(1,744,762)
7,056
884,265
38,57733,971(14,615)(34,907)

Subtotal

4,640,500

5,615,604

Interest income received
Interest expenses paid
Income taxes paid

814
(328,496)(583)

Net cash provided by operating activities

4,312,234

1,316(297,081)(564)
5,319,276(37,422,498)(5,836,789)(82,786,898)(3,055,031)(40,738)(56,280)

239,098474,368(29,483)(2,211)(43,092,621)(574,396)(2,211)(86,000,448)

1,401,000(321,000)

3,498,000(1,080,000)

90,619,000(62,341,000)(9,960,000)(1,250,432)(2,292,901)
29,230,158
45,084,824
6,304,437
7,514,543※1 13,818,981

47,800,000(594,356)(3,014,523)(763,290)
37,780,441
83,626,270
2,945,097
13,818,981※1 16,764,078

Cash flows from investing activities
Purchases of property and equipment in trust
Purchases of leasehold rights in trust
Proceeds from tenant leasehold and security deposits intrust
Repayments of tenant leasehold and security deposits
in trust
Payments of tenant leasehold and security deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayment of long-term loans payable in trust
Payments for loan- related costs
Payment of distributions of earnings
Payment of distributions in excess of retained earnings
Proceeds from issuance of investment units
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

27

(6)

Notes Concerning Going Concerns Assumption
None

(7)

Notes Concerning Significant Accounting Policies
1. Method of depreciation of non-current assets(a) Property, plant and equipment (including assets in trust)The straight-line method is used.
The useful lives of major property, plant and equipment are as follows.
Buildings
77 years
Buildings and accompanying facilities
8-24 years
Structures
7-18 years
Buildings in trust
2-67 years
Buildings and accompanying facilities in trust
2-33 years
Structures in trust
3-55 years
Tools, furniture and fixtures in trust
2-19 years(b) Intangible assets
The straight-line method is used. For leasehold interests (fixed-term land lease for business purposes), the straight-line
method based on the lease period is used.
(c) Long-term prepaid expenses
The straight-line method is used.
2.

Method of calculating allowances
Allowance for doubtful accounts
To reserve for losses on doubtful accounts, allowances are provided for normal receivables using a rate determined basedon past bad debt experiences, and specific allowances are provided for accounts with a possibility of default based on theestimated amounts considered to be uncollectible by considering the collectability of accounts on an individual basis.

3.

Revenue and expense recognition
Accounting treatment of property taxes and other taxes
With respect to property taxes, city planning taxes and depreciable asset taxes, of the tax amount assessed and determined,
the amount corresponding to the relevant fiscal period is accounted for as property related expenses.
Of the amounts paid to the seller for acquisitions of real estate, the amount equivalent to property taxes is capitalized as partof the acquisition cost of the real estate or trust beneficiary interests in real estate instead of being charged as expense. The
amount equivalent to property taxes that was included as part of the acquisition of real estate during the fiscal period ended
June 30, 2016 is JPY 176,385 thousand.

4.

Method of hedge accounting(a) Method of hedge accounting
Deferral hedge accounting is used.
(b) Hedging instrument and hedged item
Hedging instrument: interest rate swap
Hedged item: interest on borrowings(c) Hedge policy
INV enters into derivatives transactions for the purpose of hedging against the risks set forth in INV’s Articles ofIncorporation in accordance with its risk management policy.

28

(d) Method of evaluating hedge effectivenessHedge effectiveness is evaluated by comparing the cumulative amount of changes in cash flows of the hedging instrument
and the cumulative amount of changes in cash flows of the hedged item and verifying the difference in the amounts ofchange of both the hedged item and the hedging instrument.
5.

Cash and cash equivalents as stated in Statement of Cash Flows
Cash and cash equivalents as stated in the Statement of Cash Flows consist of cash on hand and cash in trust, floating
deposits, deposits in trust and short-term investments that are very liquid and realizable with a maturity of three months orless when purchased and that are subject to insignificant risks of changes in value.

6.

Other significant matters which constitute the basis for preparation of financial statements(i) Accounting treatment of trust beneficiary interests in real estate
As to trust beneficiary interests in real estate, all accounts of assets and liabilities within assets in trust, as well as all income
generated and expenses incurred from assets in trust, are recorded in the relevant balance sheets and income statement
accounts. Of such items, the following significant trust assets and liabilities are shown separately on the balance sheet.
(a) Cash and deposits in trust(b) Buildings in trust
Buildings and accompanying facilities in trust
Structures in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust(c) Land leasehold rights in trust(d) Tenant leasehold and security deposits in trust(ii) Accounting treatment of deferred charges
Investment unit issuance costs
The full amount is recorded as expense at the time of expenditure.
(iii) Accounting treatment of consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

(8)Notes to changes in indication method(Statement of Cash Flows)
In the fiscal period ended December 31, 2015, “Payment for leasehold and security deposits” was included in “Other”
under “Cash flows from investing activities”. However, due to an increase in the relevant amount, it has become
significant enough to be recorded as a separate item in the fiscal period ended June 30, 2016. As a result, the entry for(JPY 2,211,000), which was recorded under “Cash flows from investing activities – Others” for the previous period is now
indicated under “Payments of tenant leasehold and security deposits”.

(9)

Notes to the Financial Statements(Notes to the Balance Sheet)※1.

Matters concerning treatment of reversal of reserve for temporary difference adjustment.

Fiscal Period ended December 31, 2015 (as of December 31, 2015)
None
Fiscal period ended June 30, 2016 (as of June 30, 2016)
INV plans to reverse all of the reserve for temporary difference adjustment in the amount of JPY 708 thousand, and use
the fund as part of the profit distributions to be made in the next fiscal period.
29

※2.

Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
Fiscal Period ended
December 31, 2015(as of December 31, 2015)
50,00030(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)
50,000(Notes to Statement of Income)※1.

Rental revenues and property related expenses
Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)

A.

(Unit: JPY thousands)
Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)

Real property rental revenue

Rental revenue
Rent/common area charges

6,652,619

7,889,877

211,156

268,3426,863,775

8,158,220

Maintenance costs

472,597554,149

Taxes and public dues

250,268

281,065

Insurance expenses

9,934

12,6691,275,714

1,676,736

169,651

173,364

Total

2,178,165

2,697,986

C.

4,685,610

5,460,234

Other revenue
Total
B.

Real property related expenses

Property related expenses

Depreciation expenses
Other expenses

Operating income from rental revenue (A-B)(Notes to Statement of Unitholders’ Equity)

Number of investment units authorized and number of investment units issued and outstanding
Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)

Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)

Number of investment units authorized

10,000,000 units

10,000,000 units

Number of investment units issued and outstanding

3,193,686 units

3,675,824 units(Notes to Statement of Cash Flow)※1.

Relationship between cash and cash equivalents in statement of cash flows and amounts in accompanying balance sheet
Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)

Cash and bank deposits

7,885,398(Unit: JPY thousands)
Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)
11,322,762

Cash and bank deposits in trust

5,933,582

5,441,316

Cash and cash equivalents

13,818,981

16,764,078

31

(Notes Related to Lease Contracts)
Operating lease transactions (as lessee)
Remaining lease payments
Fiscal Period ended
December 31, 2015(as of December 31, 2015)(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)

Due within one year

112,249244,619

Due after one year

2,111,914

7,490,299

Total

2,224,164

7,734,918

Operating lease transactions (as lessor)
Remaining lease payments
Fiscal Period ended
December 31, 2015(as of December 31, 2015)(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)

Due within one year

3,657,829

5,988,176

Due after one year

31,055,536

50,718,568

Total

34,713,366

56,706,745(Notes Related to Financial Instruments)
1.

Status of financial instruments(1) Policy for financial instruments
INV principally conducts its operations through investments in real estate and other specified assets to seek to ensure stable
income in the medium to long term.
The policy for raising funds is principally through issuing new investment units or entering into a loan agreement.
Derivative transactions are to be entered into for the purpose of hedging against the risk of future interest rate increases, etc.
and not for speculation.
Surplus funds are managed after carefully taking into account safety, liquidity, the interest rate environment and financing.
(2) Nature and extent of risks arising from financial instruments and risk management
The funds raised through borrowings are mainly used to acquire real estate properties or properties in trust (including
related acquisition costs) and for the repayment of existing loan. Liquidity risks relating to loan are managed by the financedepartment of the Asset Manager by preparing and updating plans for funds, and monitoring the covenants set forth in loan
agreements.
(3) Supplemental information regarding market value, etc. for financial instruments
The fair value of financial instruments is based on quoted market prices if available. When quoted market prices are notavailable, fair value is determined through a reasonable estimate. Since certain assumptions, etc. are used in estimating thefair value, different assumptions, etc. may result in the variance of such value.

32

2.

Estimated fair value of financial instruments

Fiscal Period ended December 31, 2015 (As of December 31, 2015)
Book value, fair value and the difference between values as of December 31, 2015 are as follows.
(Unit: JPY thousand)Book Value

Fair Value

Difference(1) Cash and bank deposits

7,885,398

7,885,398-(2) Cash and bank deposits in trust

5,933,582

5,933,582-

13,818,981

13,818,981-(3) Short-term loans(1,080,000)(1,080,000)-(4) Long-term loans(90,619,000)(90,619,000)-(91,699,000)(91,699,000)-

Total assets

Total liabilities

Fiscal Period ended June 30, 2016 (As of June 30, 2016)
Book value, fair value and the difference between values as of June 30, 2016 are as follows.
(Unit: JPY thousand)Book Value

Fair Value

Difference(1) Cash and bank deposits

11,322,762

11,322,762-(2) Cash and bank deposits in trust

5,441,316

5,441,316-

16,764,078

16,764,078-(3) Short-term loans(3,498,000)(3,498,000)-(4) Accounts payable(8,957,286)(8,957,286)-(5) Long-term loans(138,419,000)(138,419,000)-(150,874,286)(150,874,286)-(227,532)(227,532)

Total assets

Total liabilities(6) Derivative transactions(Note 1) Items recorded in the Liabilities Section are shown in parenthesis.
(Note 2) Receivables and payables arising from derivative transactions are recorded in net amounts, and if the total net amountis a negative amount, such amount are shown in parenthesis.
(Note 1) Methods to calculate fair values of financial instruments(1) Cash and bank deposits(2) Cash and bank deposits in trust(3) Short-term loans(4) Accounts payable
Due to the short maturities, the book value of these instruments is deemed a reasonable approximation of the fairvalue, and therefore, the book value is used as the fair value.
(5) Long-term loans
Long-term loan with floating interest rates reflecting changes in market rates within a short term period are stated attheir book value as their book values approximate their fair values.
(6) Derivative transactions
Please refer to the “Notes Related to Derivative Transactions” below.

33

(Note 2) Financial instruments for which fair value is extremely difficult to value(Unit: JPY thousand)Fiscal Period ended
June 30, 2016(as of June 30, 2016)

Fiscal Period ended
December 31, 2015(as of December 31, 2015)

Tenant leasehold and28,663
28,663security deposits
Tenant leasehold and1,617,867
2,035,843
security deposits in trust
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable market price,
and it is impracticable to reasonably estimate their future cash flows because the repayment dates of those deposits and thetiming of the lessee’s exit from the property are not certain. Thus, their fair value is not disclosed.
(Note 3) Remaining schedule of monetary claims after the closing date of the fiscal period
Fiscal Period ended December 31, 2015 (As of December 31, 2015)(Unit: JPY thousand)Due after One Due after Two Due after Three Due after Four Due after Five
to Two Years to Three Years to Four Years to Five Years
Years

Due within
One Year
Cash and bank deposits

7,885,398

-

-

-

-

-

Cash and bank deposits in trust

5,933,582

-

-

-

-

-

Total

13,818,981

-

-

-

-

-

Fiscal Period ended June 30, 2016 (As of June 30, 2016)(Unit: JPY thousand)Due after One Due after Two Due after Three Due after Four Due after Five
to Two Years to Three Years to Four Years to Five Years
Years

Due within
One Year
Cash and bank deposits

11,322,762

-

-

-

-

-

Cash and bank deposits in trust

5,441,316

-

-

-

-

-

Total

16,764,078

-

-

-

-

-

(Note 4) Redemption schedule of long-term loans and other interest-bearing debts after the closing date of the fiscal period

Fiscal Period ended December 31, 2015 (As of December 31, 2015)

Short-term loans(Unit: JPY thousand)Due within Due after One Due after Two Due after Three Due after Four Due after FiveOne Yearto Two Years to Three Years to Four Years to Five Years
Years
1,080,000-

Long-term loans--

28,979,000

32,661,000

28,979,000

-

Total

1,080,000-

28,979,000

32,661,000

28,979,000-

Fiscal Period ended June 30, 2016 (As of June 30, 2016)

Short-term loans(Unit: JPY thousand)Due within Due after One Due after Two Due after Three Due after Four Due after FiveOne Yearto Two Years to Three Years to Four Years to Five Years
Years
3,498,000-

Long-term loans--

46,663,000

44,094,000

47,662,000

-

Total

3,498,000-

46,663,000

44,094,000

47,662,000-34

(Notes Related to Investment Securities)
None(Notes Related to Derivative Transactions)1.

Hedge accounting was not applied
Fiscal Period ended December 31, 2015 (As of December 31, 2015)
None
Fiscal Period ended June 30, 2016 (As of June 30, 2016)
None

2.

Hedge accounting was applied
Fiscal Period ended December 31, 2015 (As of December 31, 2015)
None
Fiscal Period ended June 30, 2016 (As of June 30, 2016)
The contractual amount as of the closing date under each hedge-accounting method and the amount equivalent to thenotional principal prescribed in the contracts are as shown below.
(Unit: JPY thousand)
Method of hedge
accounting

Derivative transaction
type, etc.

Primary hedged
item

Contractual amount, etc. (※1)
Amount due
after one year

Fair value (※2)

Interest rate swap
Long-term
99,119,000
99,119,000(227,532)
Receive floating
loans
rate/pay fixed rate
The contractual amount, etc. are stated based on a notional principal.
The fair value is estimated based on the price, etc. presented by the correspondent financial institutions.

Standard method oftreatment(Note 1)
(Note 2)

(Notes Related to Retirements Payments)
None(Notes Related to Asset Retirement Obligations)Fiscal Period ended December 31, 2015 (from July 1, 2015 to December 31, 2015)
None
Fiscal Period ended June 30, 2016 (from January 1, 2016 to June 30, 2016)
1.

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

2.

Calculation method for asset retirement obligations for the period
The amount of the asset retirement obligations has been calculated by fixing the estimated period of use at 43 years, basedon the period until the expiration of the fixed-term land lease agreement, and by using a discount rate of 1.342%.

3.

Increase/decrease in the total amount of asset retirement obligations for the current fiscal period(Unit: JPY thousand)
Balance at the beginning of the period
Liabilities incurred due to the acquisition of properties
30,868
Accretion expense
182
Balance at the end of the period
31,05035

(Notes Related to Segment and Related Information)
I. Segment Information
Disclosure is omitted because the real estate investment business is INV’s sole business and it has no reportable segments.
II. Related Information
Fiscal Period ended December 31, 2015 (from July 1, 2015 to December 31, 2015)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category accounted for over
90% of the operating revenue on the statement of income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan accounted for over 90% of the operating revenue
on the statement of income.
(2) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounted for over 90% of theamount of property and equipment on the balance sheet.
3. Information about each major customer(Unit: JPY thousand)Name of Customer

Operating revenues

MyStays Hotel Management Co., Ltd.

3,125,985

Related segment
Real Estate Investment

Fiscal Period ended June 30, 2016 (from January 1, 2016 to June 30, 2016)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category accounted for over 90%of the operating revenue on the statement of income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan accounted for over 90% of the operating
revenue on the statement of income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounted for over 90% of theamount of property and equipment on the balance sheet.
3. Information about each major customer(Unit: JPY thousand)Name of Customer

Operating revenues

MyStays Hotel Management Co., Ltd.

3,389,166

36

Related segment
Real Estate Investment

(Notes Related to Rental Properties)
INV owns residential properties and hotels as core assets as well as other various properties including offices and retail assets
principally in the Tokyo area and major regional cities in order to establish a portfolio which focuses on both stability and growthpotential. The book value amount changed during the period and balance at the end of the period are as follows.
Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)

Residences

Book value

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

Fair value at the end of the period

OfficesBook value

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

Fair value at the end of the period

Commercial facilities

Book value

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

Fair value at the end of the period

Parking lots

Book value

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

Fair value at the end of the period

HotelsBook value

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

Fair value at the end of the period

Total

Book value

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

Fair value at the end of the period(Unit: JPY thousand)Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)

55,269,403

60,305,706

5,036,303

7,968,789

60,305,706

68,274,496

68,592,000

77,214,000

8,514,702

8,487,876(26,826)(17,489)

8,487,876

8,470,387

7,206,000

7,219,000

5,178,288

5,134,083(44,205)(46,557)

5,134,083

5,087,525

5,830,000

5,840,000

100,822

100,821(1)(1)

100,821

100,820

112,000

113,000

58,211,612

95,223,054

37,011,441

84,314,865

95,223,054

179,537,920

133,212,000

232,905,000

127,274,829

169,251,542

41,976,712

92,219,607

169,251,542

261,471,150

214,952,000

323,291,000(Note 1) Book value is the figure calculated by subtracting the amount of depreciation from acquisition price (including
acquisition-related costs).

37

(Note 2) The major factors for the increase for the fiscal period ended December 31, 2015 were acquisition of new residential
properties/hotels, capital expenditures related to construction work, and the major factor of the decrease wasdepreciation. The major factors for the increase for the fiscal period ended June 30, 2016 were acquisition of newresidential properties and hotels, capital expenditures related to construction work, and the major factor for thedecrease was depreciation.
(Note 3) The fair value as of the end of the reporting period is determined based on the appraisal value provided by Asset
Research and Development Inc., Japan Real Estate Institute, Morii Appraisal & Investment Consulting Inc., Tanizawa
Sogo Appraisal Co., Ltd., and Daiwa Real Estate Appraisal Co., Ltd.
For information related to profits and losses from rental properties, please refer to “Notes to Statement of Income.”

38

(Notes Related to Tax Accounting)
1. Significant components of deferred tax assets and liabilities(Unit: JPY thousand)Fiscal Period ended
December 31, 2015

Fiscal Period ended
June 30, 2016

(Deferred tax assets - current assets)
Enterprise tax payable

489

481

Accounts receivable (merger)

186

183

Allowance for doubtful accounts

806

877

Subtotal

1,482

1,542

Valuation allowance

1,482

1,542

Total

-

-

(Net deferred tax assets - current)--

735,158

711,143

2,129,657

2,092,087-

72,218

7,329,595

7,200,289(Deferred tax assets - non-current assets)
Buildings and other (merger)
Land (merger)
Deferred gains/losses on hedges
Long-term accrued expenses
Asset retirement obligations
Subtotal-

9,855

10,194,411

10,085,594

-

9,797

(Deferred tax liabilities – non-current liabilities)
Removal expenses included in asset retirement
obligations
Subtotal-

9,797

10,194,411

10,075,797

Total

-

-

(Net deferred tax assets - non-current)--

Valuation allowance

2. Significant difference between statutory tax rate and the effective tax rate
(Unit: %)Fiscal Period ended
December 31, 2015

Fiscal Period ended
June 30, 2016

Statutory tax rate

32.31

32.31

Deductible cash distributions(31.93)(32.21)

Provision of reserve for reduction entry(0.38)(2.72)

Others0.02

2.63

Effective tax rate

0.02

0.01

3. Modifications to the amount of deferred tax assets and deferred tax liabilities due to changes in the corporation tax rate, etc.
Due to the enactment of the “Act to Partially Revise the Income Tax Act and Others” (Act No. 15 of 2016) and the “Act toPartially Revise the Local Tax Act and Others ” (Act No. 13 of 2016) on March 29, 2016, the corporation tax rate, etc. wasreduced from the fiscal period commencing after April 1, 2016. Accordingly, the statutory effective tax rate used for
calculating deferred tax assets and deferred tax liabilities will be changed from the existing rate of 32.31% to 31.74% for
the temporary difference expected to be reversed during fiscal periods commencing after July 1, 2016. There is little
impact from this change.

39

(Notes Related to Equity-Method Income)
None(Notes Related to Transactions with Related Parties)
1.

Transactions with Parent Company and Major Unitholders
Fiscal Period ended December 31, 2015 (from July 1, 2015 to December 31, 2015)

Classification

Interested partyof the AssetManager

Name

Address

StatedCapital(JPY
million)Business or
Occupation

Ratio of
VotingRightsOwned(%)

RelationshipTransaction
Type ofAmount (JPY
CommonTransaction
thousand)Business
Board(Note 1)
Relationship
MemberSkye Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Nishi Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Rannoch Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Wakusei Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Suisei Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Aki Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Zephyrus Tokutei
MinatoMokuteki Kaisha
Ward, Tokyo(Note 3)

Investment
0.1 managementbusiness--

Investment
3 managementbusiness

-

-

Hotel
business--

Godo Kaisha
Baretta(Note 3)

MinatoWard, Tokyo

MyStays HotelManagement
MinatoCo., Ltd.
Ward, Tokyo(Note 3)100

40

Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Purchase of
trust
Seller of trust
beneficiary
beneficiaryinterests ininterests inreal estate
real estate(Note 2)
(Note 5)Lessee andoperator of
hotelsRentalrevenues

Account

Balance atthe End of
the Period(JPY
thousand)(Note 1)7,801,000--

14,405,000--

5,707,000--

2,198,000--

2,603,000--

1,277,000--

1,237,000--

5,099,000--

3,125,985

Accounts
receivable

920,391

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

Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
The terms and conditions have been determined based on the Asset Manager’s internal rules and manual regarding transactions with the sponsor
company.
Skye Tokutei Mokuteki Kaisha, Nishi Tokutei Mokuteki Kaisha, Rannoch Tokutei Mokuteki Kaisha, Wakusei Tokutei Mokuteki Kaisha, Suisei
Tokutei Mokuteki Kaisha, Aki Tokutei Mokuteki Kaisha, Zephyrus Tokutei Mokuteki Kaisha, Godo Kaisha Baretta and MyStays HotelManagement Co., Ltd. have no capital relationship to be disclosed with the Asset Manager. The Tokutei Mokuteki Kaisha or the lessee andoperator have received an anonymous partnership investment or investment through funds that are managed by affiliates of Fortress Investment
Group LLC (“FIG”), an affiliate of Calliope. Accordingly, INV treats Skye Tokutei Mokuteki Kaisha, Nishi Tokutei Mokuteki Kaisha,Rannoch Tokutei Mokuteki Kaisha, Wakusei Tokutei Mokuteki Kaisha, Suisei Tokutei Mokuteki Kaisha, Aki Tokutei Mokuteki Kaisha,
Zephyrus Tokutei Mokuteki Kaisha, Godo Kaisha Baretta and MyStays Hotel Management Co., Ltd. as the equivalent to interested parties.
Calliope holds 609,942 units (holding percentage: 19.09%) of the issued investment units of INV.
The purchase of trust beneficiary interests pertains to the following properties. The transaction amount is the purchase price stated in the trust
beneficiary purchase agreement, to which other expenses for acquisition, property taxes, city planning taxes and consumption taxes are notincluded.

Property
NumberName of Property

Counterparty

A100

City Court Kitaichijo

Godo Kaisha Baretta

1,782,000

A101

Lieto Court Mukojima

Godo Kaisha Baretta

1,683,000

A102

Lieto Court Nishi-Ojima

Godo Kaisha Baretta

1,634,000

D24

Hotel MyStays Haneda

Skye Tokutei Mokuteki Kaisha

7,801,000

D25

Hotel MyStays Kameido P1

Nishi Tokutei Mokuteki Kaisha

5,594,000

D26

Hotel MyStays Ueno Iriyaguchi

Rannoch Tokutei Mokuteki Kaisha

3,821,000

D27

Hotel MyStays Kameido P2

Nishi Tokutei Mokuteki Kaisha

3,742,000

D28

Hotel Vista Shimizu

Wakusei Tokutei Mokuteki Kaisha

2,198,000

D29Super Hotel Shinbashi/
Karasumoriguchi

Suisei Tokutei Mokuteki Kaisha

1,624,000

D30

Flexstay Inn Higashi-Jujo

Aki Tokutei Mokuteki Kaisha

1,277,000

D31

Hotel MyStays Utsunomiya

Zephyrus Tokutei Mokuteki Kaisha

1,237,000

D32

Flexstay Inn Kawasaki-Kaizuka

Rannoch Tokutei Mokuteki Kaisha

980,000

D33

Comfort Hotel Toyama

Suisei Tokutei Mokuteki Kaisha

979,000

D34

Flexstay Inn Kawasaki-Ogawacho

Rannoch Tokutei Mokuteki Kaisha

906,000

D35

Flexstay Inn Ekoda

Nishi Tokutei Mokuteki Kaisha

5,069,000

Total

Purchase Price (JPY thousand)

40,327,000

41

Fiscal Period ended June 30, 2016 (from January 1, 2016 to June 30, 2016)

Classification

Name

Address

StatedCapital(JPY
million)

Percentate
Relationshipof VotingBusiness or
Rights Common BusinessOccupation
Owned
Board Relation(%)
Membership

Investment
0.1 manage-me
nt business--

MinatoWard, Tokyo

Investment
0.1 manage-me
nt business--Momo Tokutei
MinatoMokuteki Kaisha Ward, Tokyo

Investment
0.1 manage-me
nt business--

MinatoWard, Tokyo

Investment
0.1 manage-me
nt business--

Septentrio
MinatoTokutei Mokuteki
Ward, Tokyo
KaishaInvestment
0.1 manage-me
nt business--

Interested party
Septentrio 2of the Asset
MinatoTokutei MokutekiManagerWard, Tokyo
KaishaInvestment
0.1 manage-me
nt business--

Septentrio 3
MinatoTokutei Mokuteki
Ward, Tokyo
KaishaInvestment
0.1 manage-me
nt business--

Aki Tokutei
MinatoMokuteki Kaisha Ward, Tokyo

Navaro Tokutei
Mokuteki Kaisha

Tsuki Tokutei
Mokuteki Kaisha

Ginga Tokutei
Mokuteki Kaisha

MinatoWard,
Tokyo

Investment
0.1 manage-me
nt business--

Wakusei Tokutei
Mokuteki Kaisha

MinatoWard,
Tokyo

Investment
0.1 manage-me
nt business--Transaction
Type ofAmount (JPY
Account
Transaction
thousand)(Note 1)

Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests ininterests
real estate
in real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests in realinterests
estatein real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests ininterests
real estate
in real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests in realinterests
estatein real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests ininterests
real estate
in real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests in realinterests
estatein real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests ininterests
real estate
in real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests ininterests
real estate
in real(Note 2)
estate(Note 5)Seller of Purchase of
trust
trust
benefi-cia beneficiaryryinterests in realinterests
estatein real(Note 2)
estate(Note 5)

Balance atthe End of
the Period(JPY
thousand)(Note 1)

3,160,000--

20,155,000--

7,934,000--

24,674,000--

12,588,600--

4,196,199--

4,196,199--

13,761,000

Accounts
payable2,139,000-

8,800,548-

Naqua Hotel &Resorts
MinatoManagement Ward, Tokyo
Co., Ltd.

10

Hotel
business--

Lesseeandoperatorof hotels

Rentalrevenues

627,563

Accounts
receivable

220,811

MyStays Hotel
MinatoManagement
Ward, Tokyo
Co., Ltd.

100

Hotel
business--

Lesseeandoperatorof hotels

Rentalrevenues

3,389,166

Accounts
receivable

990,543

42

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

Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
The terms and conditions have been determined based on the Asset Manager’s internal rules and manual regarding transactions with the sponsor
company.
Aki Tokutei Mokuteki Kaisha, Navaro Tokutei Mokuteki Kaisha, Momo Tokutei Mokuteki Kaisha, Tsuki Tokutei Mokuteki Kaisha, Septentrio
Tokutei Mokuteki Kaisha, Septentrio 2 Tokutei Mokuteki Kaisha, Septentrio 3 Tokutei Mokuteki Kaisha, Ginga Tokutei Mokuteki Kaisha,
Wakusei Tokutei Mokuteki Kaisha, Naqua Hotel & Resorts Management Co., Ltd., and MyStays Hotel Management Co., Ltd. have no capital
relationship to be disclosed with the Asset Manager. The Tokutei Mokuteki Kaisha or the lessee and operator have received an anonymous
partnership investment or investment through funds that are managed by affiliates of Fortress Investment Group LLC (“FIG”), an affiliate ofCalliope. Accordingly, INV treats Aki Tokutei Mokuteki Kaisha, Navaro Tokutei Mokuteki Kaisha, Momo Tokutei Mokuteki Kaisha, Tsuki
Tokutei Mokuteki Kaisha, Septentrio Tokutei Mokuteki Kaisha, Septentrio 2 Tokutei Mokuteki Kaisha, Septentrio 3 Tokutei Mokuteki Kaisha,
Ginga Tokutei Mokuteki Kaisha, Wakusei Tokutei Mokuteki Kaisha, Naqua Hotel & Resorts Management Co., Ltd., and MyStays HotelManagement Co., Ltd. as the equivalent to interested parties.
Calliope holds 609,942 units (holding percentage: 16.6%) of the issued investment units of INV.
The purchase of trust beneficiary interests pertains to the following properties. The transaction amount is the purchase price stated in the trust
beneficiary purchase agreement, to which other expenses for acquisition, property taxes, city planning taxes and consumption taxes are notincluded.

Property
NumberName of Property

Counterparty

A103

Royal Parks Momozaka

Momo Tokutei Mokuteki Kaisha

2,910,000

A104Royal Parks Shinden

Momo Tokutei Mokuteki Kaisha

5,024,000

D38

Hotel MyStays Shinsaibashi

Aki Tokutei Mokuteki Kaisha

3,160,000

D39

Comfort Hotel Kurosaki

Navaro Tokutei Mokuteki Kaisha

1,148,000

D40

Comfort Hotel Maebashi

Navaro Tokutei Mokuteki Kaisha

1,128,000

D41

Comfort Hotel Tsubame-Sanjo

Navaro Tokutei Mokuteki Kaisha

1,010,000

D42

Comfort Hotel Kitami

Navaro Tokutei Mokuteki Kaisha

851,000

D43

Hotel MyStays Gotanda Station

Tsuki Tokutei Mokuteki Kaisha

24,674,000

D44Hotel Epinard Nasu

Serpentrio Tokutei Mokuteki Kaisha
Serpentrio 2 Tokutei Mokuteki Kaisha
Serpentrio 3 Tokutei Mokuteki Kaisha

20,981,000

D45

Hotel MyStays Fukuoka Tenjin

Navaro Tokutei Mokuteki Kaisha

8,059,000

D46

Hotel MyStays Hamamatsucho

Navaro Tokutei Mokuteki Kaisha

7,959,000

D47

Hotel MyStays Kanazawa

Ginga Tokutei Mokuteki Kaisha

13,761,000

D48

Takamatsu Tokyo REI Hotel

Wakusei Tokutei Mokuteki Kaisha

2,139,000

Purchase Price (JPY thousand)

Total
2.

92,804,000

Transactions with Affiliates
None for both the fiscal period ended December 31, 2015 and the fiscal period ended June 30, 2016

3.

Transactions with Companies under Common Control
None for both the fiscal period ended December 31, 2015 and the fiscal period ended June 30, 2016

43

4.

Transactions with Directors and Major Unitholders
Fiscal Period ended December 31, 2015 (from July, 2015 to December 31, 2015)
Balance at
Ratio ofClassification

Name

Business or occupation

voting rights

Details of transaction(%)

Transaction

the end ofamount (JPYthe period

thousand)Account(Note 3)

(JPY
thousand)(Note 3)

Executive Director of
Directors andclose
relatives

Naoki
FukudaPayment of asset

INV and President &CEO of Consonant

management fees to-Consonant Investment

Investment Management

Trade180,000

Management Co., Ltd.

Co., Ltd.

and other

97,200payables(Note 1)
Payment of generaladministration fees forSame asSame as

above

above

organizational
Same as above-

management to

Trade
1,100

Consonant Investment

and other864

payablesManagement Co., Ltd.
(Note 2)
(Note 1)

Naoki Fukuda served as a representative of the third party (the Asset Manager), and the fee is as set forth in the Articles of Incorporation of
INV.

(Note 2)

Naoki Fukuda served as a representative of the third party (the Asset Manager), and the fee is as set forth in the “General Administrative
Agreement relating to Organizational Management,” entered into by and between INV and the Asset Manager.

(Note 3)

Consumption taxes, etc. are not included in the transaction amounts, but are included in the balance at the end of the period.

Fiscal Period ended June 30, 2016 (from January 1, 2016 to June 30, 2016)
Balance at
Ratio ofClassification

Name

Business or occupation

voting rights

Details of transaction(%)

Transaction

the end ofamount (JPYthe period

thousand)Account(Note 3)

(JPY
thousand)(Note 3)

Executive Director of
Directors andclose
relatives

Naoki
FukudaPayment of asset

INV and President &CEO of Consonant

management fees to-Consonant Investment

Investment Management

Trade259,280

Management Co., Ltd.

Co., Ltd.

and other

135,000

payables(Note 1)
Payment of generaladministration fees forSame asSame as

above

above

organizational
Same as above-

management to

Trade
600

Consonant Investment

and other324

payablesManagement Co., Ltd.
(Note 2)
(Note 1)

Naoki Fukuda served as a representative of the third party (the Asset Manager), and the fee is as set forth in the Articles of Incorporation of
INV.

(Note 2)

Naoki Fukuda served as a representative of the third party (the Asset Manager), and the fee is as set forth in “General Administrative
Agreement relating to Organizational Management,” entered into by and between INV and the Asset Manager.

(Note 3)

Consumption taxes, etc.

are not included in the transaction amounts, but are included in the balance at the end of the period.

44

(Notes Related to Per Unit Information)
Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)

Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)
Net assets per unit

JPY 28,731

JPY 35,368

Net income per unit

JPY 937

JPY 1,270

Net income per unit is calculated by dividing net income for the period by the daily weighted average number of investment
units issued and outstanding. Diluted net income per unit is not stated as there are no diluted units.
(Note)The basis for calculating net income per unit is as follows.
Fiscal Period ended
June 30, 2016
(from January 1, 2016 toJune 30, 2016)

Fiscal Period ended
December 31, 2015
(from July 1, 2015 to
December 31, 2015)
Net income for the fiscal period ended June 30, 2016
(JPY thousand)Amounts not attributable to common unitholders(JPY thousand)Net income attributable to common unitholders(JPY thousand)Average number of investment units during the period(units)2,952,688

4,363,420--

2,952,688

4,363,420

3,149,936

3,436,572(Significant Subsequent Events)
1. Borrowing of Funds
In order to raise a part of the funds to be used for the acquisition of trust beneficiary interests for the 2 hotel properties
acquired on June 15, 2016, INV implemented the following borrowing on July 20, 2016.
Term Loan (E)LenderBorrowing amountInterest rate, etc.
Interest payment datePrincipal repayment method
Borrowing method
Borrowing date
Maturity date

: The Tokyo Star Bank, Limited: JPY 4,000 million: Base Rate (1-month JPY TIBOR) + 0.40%, 0.50%, 0.60%: On (i) the last Japanese business day of each month before the principal maturity date,
beginning with July 29, 2016, and (ii) the principal maturity date
: Lump-sum repayment: Unsecured / with no guarantee: July 20, 2016
: July 20, 2019, July 20, 2020, July 20, 202145

(10) Changes in Total Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ equity from the date ofestablishment to the end of the Reporting Period are as follows.
Total Number of Investment
Units Issued and Outstanding

Date

Type of Issue

January 18, 2002

Private placement
for incorporation

400

December 26, 2003

Private placement

January 9, 2004

Total

400

200,000,000

200,000,000(Note 1)

2,700

3,100

1,012,500,000

1,212,500,000(Note 2)

Private Placement

1,350

4,450

506,250,000

1,718,750,000(Note 2)January 21, 2004

Private placement

1,333

5,783

499,875,000

2,218,625,000(Note 2)January 27, 2004

Private placement

267

6,050

100,125,000

2,318,750,000(Note 2)January 28, 2004

Private placement

800

6,850

300,000,000

2,618,750,000(Note 2)January 31, 2004

Private placement

266

7,116

99,750,000

2,718,500,000(Note 2)February 5, 2004

Private placement

800

7,916

300,000,000

3,018,500,000(Note 2)February 7, 2004

Private placement

1,333

9,249

499,875,000

3,518,375,000(Note 2)

May 17, 2004

Public offering

9,000

18,2493,377,250,000

6,895,625,000(Note 3)February 7, 2005

Public offering

10,65028,8993,937,667,100

10,833,292,100(Note 4)

July 31, 2006

Public offering

25,00053,8998,301,125,000

19,134,417,100(Note 5)February 1, 2010

Unit split

215,596

269,495-

19,134,417,100(Note 6)

February 1, 2010

Merger367,200

636,695-

19,134,417,100(Note 7)

711,597

1,348,292

6,999,979,689

26,134,396,789(Note 8)224,887

1,573,179

2,999,992,580

29,134,389,369(Note 9)December 20, 2013

Third-party
allotment
Third-party
allotment

Total

Reference

Increase

July 29, 2011

Increase

Unitholders’ Equity (JPY)

July 16, 2014

Public offering

1,040,000

2,613,179

22,747,920,000

51,882,309,369(Note 10)

August 13, 2014

Third-party
allotment

55,5072,668,686

1,214,104,611

53,096,413,980(Note 11)

July 15, 2015

Public offering

500,000

3,168,686

27,970,500,000

81,066,913,980(Note 12)

August 12, 2015

Third-party
allotment

25,0003,193,686

1,398,525,000

82,465,438,980(Note 13)

March 30, 2016

Public offering

459,5123,653,198

36,123,157,344

118,588,596,324(Note 14)

April 27, 2016

Third-party
allotment

22,626

3,675,824

1,778,675,112

120,367,271,436(Note 15)

(Note 1)
(Note 2)

INV was incorporated through a private placement at a price of JPY 500,000 per unit.
New investment units were issued in a private placement at a price of JPY 375,000 per unit to raise funds for the acquisition of
new properties.

(Note 3)New investment units were issued in a public offering at a price of JPY 395,000 per unit (JPY 375,250 after deducting theunderwriters’ discount) to raise funds for the acquisition of new properties.

(Note 4)

New investment units were issued in a public offering at a price of JPY 385,140 per unit (JPY 369,734 after deducting theunderwriters’ discount) to raise funds for the acquisition of new properties.

(Note 5)New investment units were issued in a public offering at a price of JPY 348,740 per unit (JPY 332,045 after deducting theunderwriters’ discount) to raise funds for the acquisition of new properties.

(Note 6)(Note 7)

An investment unit split of 5 units per 1 unit was conducted.
A merger by absorption pursuant to Article 147 of the Act on Investment Trusts and Investment Corporations was conducted with
LCP, with INV as the surviving entity. As a result of the merger by absorption, 4 investment units of INV (after the investment
unit split) were allotted for each LCP investment unit. The number of LCP investment units issued as of the time of the merger
by absorption was 91,800 units.

46

(Note 8)

New investment units were issued in a third party allotment at a price of JPY 9,837 per unit to make repayment of existing loan,etc.

(Note 9)New investment units were issued in a third party allotment at a price of JPY 13,340 per unit to make repayment of existing loan,etc.

(Note 10) New investment units were issued in a public offering at a price of JPY 22,688 per unit (JPY 21,873 after deducting theunderwriters’ discount) to raise funds for the acquisition of new properties.
(Note 11) New investment units were issued in a third party allotment at a price of JPY 21,873 per unit for the purpose of cash reserve toappropriate to repayment in future borrowings.
(Note 12) New investment units were issued in a public offering at a price of JPY 57,817 per unit (JPY 55,941 after deducting theunderwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 13) New investment units were issued in a third party allotment at a price of JPY 55,941 per unit for the purpose of allocation to cash
reserves to be used as part of the funds for future acquisition of properties.
(Note 14) New investment units were issued in a public offering at a price of JPY 81,217 per unit (JPY 78,612 after deducting theunderwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 15) New investment units were issued in a third party allotment at a price of JPY 78,612 per unit for the purpose of allocation to cash
reserves to be used as a part of the funds for future acquisition of properties.

4. Change in Directors
Changes in directors are disclosed in a timely manner upon the determination of such changes.

47

5. Reference Information(1)

Composition of INV’s Assets

Type of
Purpose

Geographic area

asset

(Note 1)

Greater Tokyo
area
Major regional
Residential
citiesSubtotal
Greater Tokyo
area
Major regional
Office/RetailcitiesSubtotalRealestateGreater Tokyo
area
Hourly parking, etc Major regional
citiesSubtotal
Greater Tokyo
area
Major regionalHotelcitiesSubtotal
Total real estate
Greater Tokyo
area
Major regional
Residential
citiesSubtotal
Greater Tokyo
area
Major regional
Office/RetailcitiesReal
Subtotalestate inGreater Tokyo
trust
area
Hourly parking, etc Major regional
citiesSubtotal
Greater Tokyo
area
Major
regionalHotelcitiesSubtotal(Note 3)Fiscal Period ended June 30, 2016(as of June 30, 2016)
Amount held
(JPY million)(Note 2)

Percentage of
total
assets
(%)

－

－

－

－

－

－

－

－

－

－

－

－

707

0.4

705

0.2

－

－

－

－

707

0.4

705

0.2

100

0.1

100

0.0

－

－

－

－

100

0.1

100

0.0

－

－

－

－

－

－

－

－

－
808

－
0.4

－
806

－
0.3

45,941

24.7

51,86018.3

13,505

7.3

16,413

5.8

59,44632.0

68,274

24.0

7,037

3.8

7,023

2.5

5,877

3.2

5,828

2.1

12,9146.9

12,852

4.5

－

－

－

－

－

－

－

－

－

－

－

－

67,20736.1

102,445

36.1

23,037

12.4

77,092

27.1

90,245

48.5

179,537

63.2

Total real estate in trust

162,606

87.5

260,664

91.7

Deposits and other assets

22,50412.1

22,6348.0

185,918100.0(163,414)(87.9)

284,106(261,471)

100.0(92.0)

Total assets (Note 3)(Note 1)
(Note 2)

Fiscal Period ended December 31,2015(as of December 31, 2015)
Percentage ofAmount held
total
(JPY million)
assets(Note 2)(%)“Greater Tokyo area” refers to Tokyo, Kanagawa, Chiba and Saitama.
“Amount held” is from the balance sheet as of the end of the reporting period and is calculated by deducting accumulated depreciationfrom the acquisition price (including acquisition related costs).
The figures indicated in “()” under “Total assets” show the amounts related to actual owned real estate.

48

Total Liabilities
Total Net Assets
Total Liabilities and Net
AssetsFiscal Period ended December 31, 2015
Fiscal Period ended June 30, 2016(as of December 31, 2015)(as of June 30, 2016)
Percentage to total assets
Percentage to total assets
Amount (JPY million)
Amount (JPY million)(%)(%)
94,16050.6
154,101
54.2
91,75849.4

130,00545.8

185,918100.0

284,106

100.0

49

(2)

Real Estate Properties
The following summarizes the real estate and real estate held in trust that INV held as of June 30, 2016.

aProperty
number(Note 1)Price and investment percentage

Name of property

A26

Nisshin Palacestage Daitabashi

A27

Nisshin Palacestage
Higashi- Nagasaki

A28

Growth Maison Gotanda

A29

Growth Maison Kameido

A30

Emerald House

A31

Harmonie Ochanomizu

A32

Suncrest Shakujii-Koen

A33

Growth Maison Shin-Yokohama

A34

Belle Face Ueno-Okachimachi

A35

Grand Rire Kameido

A36

Growth Maison Ikebukuro

A37

Growth Maison Yoga

A38

Route Tachikawa

A39

Shibuya-Honmachi Mansion

A40

City Heights Kinuta

A41

Acseeds Tower
Kawaguchi- Namiki

A42

Capital Heights Kagurazaka

A43

College Square Machida

A44

Belair Meguro

A45

Wacore Tsunashima I

A46

Foros Nakamurabashi

A47

Growth Maison Kaijin

BalanceAcquisition
Investment Appraisal value as of June
sheet
price (JPY30, 2016
Type ofpercentage
carrying(JPY million)
ownership million)(%)
value (JPY
(Note 3)(Note 5)(Note 4)
million)Location(Note 2)Trust
beneficiaryinterests
Trust
5-4-1 Nagasaki, Toshima-ku, Tokyo beneficiaryinterests
Trust
2-26-6 Nishi-Gotanda,
beneficiary
Shinagawa-ku, Tokyo
interests
Trust
6-58-16 Kameido, Koto-ku, Tokyo
beneficiaryinterests
Trust
3-27-18 Itabashi, Itabashi-ku, Tokyo beneficiaryinterests
Trust
2-5-5 Yushima, Bunkyo-ku, Tokyo
beneficiaryinterests
Trust
3-15-35 Takanodai, Nerima-ku,
beneficiaryTokyo
interests
Trust
3-16-2 Shin-Yokohama, Kohoku-ku,
beneficiary
Yokohama-shi, Kanagawa
interests
Trust
1-27-5 Higashi-Ueno, Taito-ku,
beneficiaryTokyo
interests
Trust
3-39-12 Kameido, Koto-ku, Tokyo
beneficiaryinterests
Trust
3-31-14 Nishi-Ikebukuro,
beneficiary
Toshima-ku, Tokyo
interests
Trust
1-15-15 Okamoto, Setagaya-ku,
beneficiaryTokyo
interests
Trust
3-7-6 Nishikicho, Tachikawa-shi,
beneficiaryTokyo
interests
Trust
2-35-2 Honmachi, Shibuya-ku,
beneficiaryTokyo
interests
Trust
4-13-15 Kinuta, Setagaya-ku, Tokyo beneficiaryinterests
Trust
2-5-13 Namiki, Kawaguchi-shi,
beneficiary
Saitamainterests
Trust
71-1 Enokicho, Shinjuku-ku, Tokyo beneficiaryinterests
Trust
3-4-4 Nakamachi, Machida-shi,
beneficiaryTokyo
interests
Trust
1-2-15 Meguro, Meguro-ku, Tokyo
beneficiaryinterests
Trust
2-7-47 Tarumachi, Kohoku-ku,
beneficiary
Yokohama-shi, Kanagawa
interests
Trust
1-6-6 Koyama, Nerima-ku, Tokyo
beneficiaryinterests
Trust
5-29-51 Kaijin, Funabashi-shi, Chiba beneficiaryinterests
1-31-2 Izumi, Suginami-ku, Tokyo

50

1,251

1,128

0.5

1,150

(Note 6)

1,229

1,095

0.5

1,270

(Note 6)

888

831

0.3

993

(Note 6)

1,070

990

0.4

1,110

(Note 6)

1,505

1,383

0.6

1,370

(Note 6)

1,428

1,357

0.5

1,320

(Note 6)

1,088

1,082

0.4

1,070

(Note 6)

1,059

972

0.4

1,180

(Note 6)

1,023

961

0.4

1,040

(Note 6)

906

835

0.3

979

(Note 6)

825

757

0.3

878

(Note 6)

795

752

0.3

703

(Note 6)

676

643

0.3

641

(Note 6)

651

654

0.2

620

(Note 6)

646

645

0.2

492

(Note 6)

620

551

0.2

716

(Note 6)

604

619

0.2

567

(Note 6)

589

564

0.2

534

(Note 6)

589

563

0.2

601

(Note 6)

572

535

0.2

515

(Note 6)

566

524

0.2

565

(Note 6)

557

525

0.2

449

(Note 6)

Property
number(Note 1)

Acquisition

Name of property

Location(Note 2)

price (JPYType ofownership million)(Note 3)

A48

College Square Machiya

A51

City House Tokyo Shinbashi

A52

Winbell Kagurazaka

A53

Nishiwaseda Cresent Mansion

A54

Lexington Square Akebonobashi

A56

Casa Eremitaggio

A59

Towa City Coop Shinotsuka II

A61Bichsel Musashiseki

A62

Lexel Mansion Ueno Matsugaya

A63

Towa City Coop Sengencho

A64

Royal Park Omachi

A65

Lexington Square Haginomachi

A66

Visconti Kakuozan

A71

Lexington Square Daitabashi

A72

Lexington Square Honjo
Azumabashi

A73

AMS TOWER Minami 6-Jo

A75

Spacia Ebisu

A76

Neo Prominence

A77

Invoice Shin-Kobe Residence

A78

Cosmo Court Motomachi

A79

Revest Honjin

A80

Revest Matsubara

A81

Sun Terrace Minami Ikebukuro

A82

Alba Noritake Shinmachi

A83

Revest Meieki Minami

Trustbeneficiaryinterests
Trust
6-19-1 Shinbashi, Minato-ku, Tokyo beneficiaryinterests
Trust
6-15 Shin-Ogawacho, Shinjuku-ku,
beneficiaryTokyo
interests
Trust
3-18-9 Nishi-Waseda, Shinjuku-ku,
beneficiaryTokyo
interests
Trust
3-8 Yochomachi, Shinjuku-ku, Tokyo beneficiaryinterests
Trust
1-14-15 Nakane, Meguro-ku, Tokyo beneficiaryinterests
Trust
5-49-7 Higashi-Ikebukuro,
beneficiary
Toshima-ku, Tokyo
interests
Trust
1-22-7 Sekimachi-Kita, Nerima-ku,
beneficiaryTokyo
interests
Trust
3-10-2 Matsugaya, Taito-ku, Tokyo beneficiaryinterests
Trust
4-338-2 Sengencho, Nishi-ku,
beneficiary
Yokohama-shi, Kanagawa
interests
Trust
2-11-10 Omachi, Aoba-ku,
beneficiary
Sendai-shi, Miyagi
interests
Trust
1-15-16 Haginomachi,
beneficiary
Miyagino-ku, Sendai-shi, Miyagi
interests
Trust
2-44 Otanacho, Chikusa-ku,
beneficiary
Nagoya-shi, Aichi
interests
Trust
1-33-18 Izumi, Suginami-ku, Tokyo beneficiaryinterests
Trust
4-20-6 Higashikomagata,beneficiary
Sumida-ku, Tokyo
interests
Trust
2-5-15 Minami 6-Jo Nishi,
beneficiary
Chuo-ku, Sapporo-shi, Hokkaido
interests
Trust
3-6-22 Higashi, Shibuya-ku, Tokyo beneficiaryinterests
Trust
3-21-5 Shimo, Kita-ku, Tokyo
beneficiaryinterests
Trust
3-3-8 Ikutacho Chuo-ku, Kobe-shi,
beneficiary
Hyogointerests
Trust
3-12-20 Motomachi Dori Chuo-ku,
beneficiary
Kobe-shi, Hyogo
interests
2-13 Torii Dori Nakamura-ku,
Trust
Nagoya-shi,
beneficiary
Aichiinterests
Trust
3-13-12 Matsubara
beneficiaryNaka-ku ,Nagoya-shi, Aichi
interests
Trust
2-22-6 Minami Ikebukuro,
beneficiary
Toshima-ku, Tokyo
interests
Trust
3-6-8 Noritake Shinmachi, Nishi-ku,
beneficiary
Nagoya-shi, Aichi
interests
Trust
2-13-33 Meiekiminami,
beneficiary
Nakamura-ku, Nagoya-shi, Aichi
interests
7-3-1 Arakawa, Arakawa-ku, Tokyo

51

Balance
Investment Appraisal value as of June
sheet
30, 2016
percentage
carrying(JPY million)(%)
value (JPY
(Note 5)(Note 4)
million)

510

463

0.2

536

(Note 6)

2,520

2,355

0.9

3,090

(Note 7)

3,260

3,071

1.2

3,850

(Note 8)

1,880

1,886

0.7

2,400

(Note 8)

1,450

1,346

0.5

1,780

(Note 9)

1,070

967

0.4

1,050

(Note 7)

866

827

0.3

1,050

(Note 7)

577

553

0.2

705

(Note 8)

970

870

0.4

1,170

(Note 9)

1,110

1,022

0.4

1,350

(Note 7)

415

398

0.2

549

(Note 7)

330

292

0.1

446

(Note 7)

255

234

0.1

260

(Note 9)

977

875

0.4

1,150

(Note 9)

511

451

0.2

593

(Note 9)

1,180

1,001

0.4

1,200

(Note 9)

7,010

6,566

2.6

7,840

(Note 7)

1,660

1,628

0.6

1,870

(Note 7)

1,260

1,205

0.5

1,420

(Note 7)

973

927

0.4

1,070

(Note 7)

674

642

0.3

785

(Note 7)

657

629

0.2

769

(Note 7)

625

605

0.2

709

(Note 7)

608

580

0.2

715

(Note 7)

597

570

0.2

723

(Note 7)

Property
number(Note 1)

Acquisition

Location(Note 2)Name of property

price (JPYType ofownership million)(Note 3)

A84

Revest Heian

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

A85

Vendir Hamaotsu Ekimae

1-2-15 Hama Otsu, Otsu-shi, Shiga

A86

Salvo Sala

2-6-21 Shimanouchi Chuo-ku,
Osaka-shi,Osaka

A87

Excellente Kagurazaka

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

A88

Luna Court Edobori

3-4-11 Edobori, Nishi-ku,
Osaka-shi, Osaka

A89

Winntage Kobe Motomachi

7-2-2 Motomachi Dori, Chuo-ku,
Kobe-shi, Hyogo

A90

Queen's Court Fukuzumi

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

A91

Corp Higashinotoin

380-1 Kawaranomachi,
Higashinotoin
Dori Nijo Kudaru, Nakagyo-ku,
Kyoto-shi, Kyoto, and other twoparcels

A92

Belair Oimachi

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

A93

Siete Minami-Tsukaguchi

3-18 Minami Tsukaguchimachi,
Amagasaki-shi, Hyogo

A94

Prime Life Sannomiya Isogami
Koen

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

A95

HERMITAGE NANBA WEST

4-10-3 Sakuragawa Naniwa-ku,
Osaka-shi, Osaka

A96

Century Park Shinkawa 1-bankan

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

A97

West Avenue

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

A98

Little River Honmachibashi

1-34 Honmachibashi Chuo-ku,
Osaka-shi, Osaka

A99

Prime Life Mikage

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

A100 City Court Kitaichijo

1-6-3, Kitaichijohigashi, Chuo-ku,
Sapporo-shi, Hokkaido

A101 Lieto Court Mukojima

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

A102 Lieto Court Nishi-Ojima

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

A103 Royal Parks Momozaka

5-38, Fudegasaki-Chou,
Tennouji-Ku, Osaka-shi, Osaka

A104 Royal Parks Shinden

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

Trust
beneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests

Subtotal (68 properties)

Balance
Investment Appraisal value as of June
sheet
30, 2016
percentage
carrying(JPY million)(%)
value (JPY
(Note 5)(Note 4)
million)

595

567

0.2

667

(Note 7)

581

549

0.2

684

(Note 7)

544

521

0.2

623

(Note 7)

543

525

0.2

615

(Note 7)

525

502

0.2

568

(Note 7)

512

487

0.2

601

(Note 7)

456

442

0.2

568

(Note 7)

446

429

0.2

502

(Note 7)

412

400

0.2

490

(Note 7)

374

360

0.1

427

(Note 7)

373

357

0.1

433

(Note 7)

355

343

0.1

419

(Note 7)

335

326

0.1

422

(Note 7)

331

319

0.1

322

(Note 7)

310

301

0.1

383

(Note 7)

297

284

0.1

337

(Note 7)

1,782

1,858

0.7

1,890

(Note 7)

1,683

1,746

0.6

1,700

(Note 7)

1,634

1,685

0.6

1,700

(Note 7)

2,910

3,040

1.1

2,970

(Note 8)

5,024

5,272

1.9

5,050

(Note 8)

71,116

68,274

26.7

77,214

-

1,301

1,217

0.5

1,040

(Note 6)

B08

Kindai Kagakusha Building

2-7-15, Ichigaya Tamachi,
Shinjuku-ku, Tokyo

Trust
beneficiaryinterests

B09

Shinjuku Island

6-5-1 Nishi-Shinjuku, Shinjuku-ku,
TokyoReal estate

715

705

0.3

537

(Note 8)5-2-4 Nishigotanda, Shinagawa-ku,
Tokyo

Trust
beneficiaryinterests

4,880

4,705

1.8

4,030

(Note 7)

B14

Lexington Plaza Nishigotanda

52

Property
number(Note 1)

Acquisition

Location(Note 2)Name of property

price (JPYType ofownership million)(Note 3)

B15

Cross Square NAKANO

5-24-18 Nakano, Nakano-ku, Tokyo

B16

Ohki Aoba Building

9-7 Futsukacho, Aoba-ku,
Sendai-shi, Miyagi

B17

Lexington Plaza Hachiman

3-1-50 Hachiman, Aoba-ku,
Sendai-shi, Miyagi

B18

AEON TOWN Sukagawa

105 Furukawa, Sukagawa-shi,
Fukushima

Trust
beneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests

Subtotal (7 properties)
C01

Times Kanda-Sudacho 4th

1-22-7, 1-22-15 Kanda sudacho,
Chiyoda-ku, Tokyo

Real estate

Subtotal (1 property)
D01
D02
D03
D04
D05
D06
D07
D08
D09
D10
D11
D12
D13
D14
D15
D16
D17
D18
D19

Trust
beneficiaryinterests
Trust
Hotel MyStays Asakusa
1-21-11 Honjo, Sumida-ku, Tokyo
beneficiaryinterests
52, Kasaboko-cho, Higashiiru,
Trust
Hotel MyStays Kyoto-Shijo
Aburanokoji, Shijyo-dori,beneficiary
Shimogyo-ku, Kyoto-shi, Kyoto
interests
Trust
MyStays Shin-Urayasu Conference
2-1-4, Akemi, Urayasu-shi, Chiba
beneficiary
Centerinterests
Trust
3-5-1, Tekko-dori, Urayasu-shi,
Hotel MyStays Maihama
beneficiary
Chibainterests
Trust
2-4-1, Sonezakishinchi, Kita-ku,
Hotel Vista Premio Dojima
beneficiary
Osakainterests
Trust
2-23-22, Higashisakura, Naka-ku,
Hotel MyStays Nagoya-Sakae
beneficiary
Nagoya-shi, Aichi
interests
Trust
Hotel MyStays
1-4-8, Awaji-machi, Chuo-ku,
beneficiary
Sakaisuji-Honmachi
Osaka-shi, Osakainterests
Trust
4-81, Sueyoshi-cho, Naka-ku,
Hotel MyStays Yokohama
beneficiary
Yokohama-shi, Kanagawa
interests
Trust
5-43-7, Higashi-Nippori,
Hotel MyStays Nippori
beneficiaryArakawa-ku, Tokyo
interests
Trust
Hotel MyStays
3-14-20, Haruyoshi, Chuo-ku,
beneficiary
Fukuoka-Tenjin-Minami
Fukuoka-shi, Fukuoka
interests
Trust
3-26, Shin-Ogawa-cho,Flexstay Inn Iidabashi
beneficiary
Shinjuku-ku, Tokyo
interests
Trust
Hotel MyStays Ueno Inaricho
1-5-7, Matsugaya, Taito-ku, Tokyo
beneficiaryinterests
Trust
1-22-19, Kitashinagawa,Flexstay Inn Shinagawa
beneficiary
Shinagawa-ku, Tokyo
interests
Trust
1-52-5, Tokiwadai, Itabashi-ku,
Flexstay Inn Tokiwadai
beneficiaryTokyo
interests
Trust
Flexstay Inn Sugamo
3-6-16, Sugamo, Toshima-ku, Tokyo beneficiaryinterests
Trust
1-3-2, Tokui-cho, Chuo-ku,
Hotel MyStays Otemae
beneficiary
Osaka-shi, Osakainterests
Trust
Flexstay Inn Kiyosumi Shirakawa 1-12-16, Tokiwa, Koto-ku, Tokyo
beneficiaryinterests
Trust
4-27-12, Futaba, Shinagawa-ku,
Flexstay Inn Nakanobu P1
beneficiaryTokyo
interests
Hotel MyStays Kanda

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

53

Balance
Investment Appraisal value as of June
sheet
30, 2016
percentage
carrying(JPY million)(%)
value (JPY
(Note 5)(Note 4)
million)

1,060

1,100

0.4

945

(Note 7)

816

741

0.3

667

(Note 9)

3,280

3,114

1.2

3,510

(Note 8)

2,320

1,973

0.9

2,330

(Note 8)14,372

13,557

5.4

13,059

-

97

100

0.0

113

(Note 6)

97

100

0.0

113

-

2,851

2,933

1.1

5,180

(Note 7)

2,584

2,572

1.0

5,520

(Note 7)

6,024

5,862

2.3

13,900(Note 7)

4,930

4,795

1.8

7,000

(Note 7)

4,870

4,752

1.8

6,550

(Note 7)

3,845

3,722

1.4

7,370

(Note 7)

2,958

2,824

1.1

5,660

(Note 7)

2,514

2,456

0.9

8,440

(Note 7)

2,119

2,054

0.8

3,500

(Note 7)

1,898

1,852

0.7

3,760

(Note 7)

1,570

1,537

0.6

4,170

(Note 7)

1,381

1,366

0.5

2,170

(Note 7)

1,331

1,291

0.5

2,680

(Note 7)

1,242

1,226

0.5

2,120

(Note 7)

1,242

1,234

0.5

2,300

(Note 7)

1,192

1,165

0.4

2,160

(Note 7)

1,192

1,174

0.4

4,250

(Note 7)

749

741

0.3

1,320

(Note 7)

589

581

0.2

837

(Note 7)

Property
number(Note 1)

D20
D21
D22
D23
D24
D25
D26
D27
D28
D29
D30
D31
D32
D33
D34
D35
D36
D37
D38
D39
D40
D41
D42
D43
D44

Acquisition

Name of property

Location(Note 2)

price (JPYType ofownership million)(Note 3)Trust
beneficiaryinterests
Trust
3-37-2, Sumiyoshi-cho, Naka-ku,
APA Hotel Yokohama-Kannai
beneficiary
Yokohama-shi, Kanagawa
interests
Trust
26-17, Motomachi, Hakodate-shi,
Hotel Nets Hakodate
beneficiary
Hokkaido
interests
Trust
5-10-15, Shirokane, Minato-ku,
Flexstay Inn Shirogane
beneficiaryTokyo
interests
Trust
Hotel MyStays Haneda
5-1-13, Haneda, Ota-ku, Tokyo
beneficiaryinterests
Trust
Hotel MyStays Kameido P1
6-32-1, Kameido, Koto-ku, Tokyo
beneficiaryinterests
Trust
5-5-13, HigashiUeno, Taito-ku,
Hotel MyStays Ueno Iriyaguchi
beneficiaryTokyo
interests
Trust
Hotel MyStays Kameido P2
6-7-8, Kameido, Koto-ku, Tokyo
beneficiaryinterests
Trust
1-23, Masagomachi, Shimizu-ku,
Hotel Vista Shimizu
beneficiary
Shizuoka-shi, Sizuoka
interests
Trust
Super Hotel Shinbashi/
5-16-4, Shinbashi, Minato-ku,
beneficiaryKarasumoriguchiTokyo
interests
Trust
Flexstay Inn Higashi-Jujo
2-10-2, Nakajujo, Kita-ku, Tokyo
beneficiaryinterests
Trust
2-4-1, Higashishukugo,
Hotel MyStays Utsunomiya
beneficiary
Utsunomiya-shi, Tochigi
interests
Trust
1-13-2, Kaizuka, Kawasaki-ku,
Flexstay Inn Kawasaki-Kaizuka
beneficiary
Kawasaki-shi, Kanagawa
interests
Trust
1-3-2, Takara-machi, Toyama-shi,
Comfort Hotel Toyama
beneficiary
Toyamainterests
Trust
15-9, Ogawa-cho, Kawasaki-ku,
Flexstay Inn Kawasaki-Ogawacho
beneficiary
Kawasaki-shi, Kanagawa
interests
Trust
Flexstay Inn Ekoda
8-6, Sakaecho, Nerima-ku, Tokyo
beneficiaryinterests
Trust
Super Hotel Tokyo-JR Tachikawa 2-21-9, Akebonocho,
beneficiary
Kitaguchi
Tachikawa-shi, Tokyo
interests
Trust
Super Hotel JR Ueno-iriyaguchi
7-9-14, Ueno, Taito-ku, Tokyo
beneficiaryinterests
Trust
1-9-30, Nishi-Shinsaibashi,
Hotel MyStays Shinsaibashi
beneficiary
Chuo-Ku, Osaka-shi, Osakainterests
Trust
3-13-13, Kurosaki, Yahatanishi-Ku,
Comfort Hotel Kurosaki
beneficiary
Kitakyusyu-shi, Fukuoka
interests
Trust
2-18-14, Omote-Cho, Maebashi-shi,
Comfort Hotel Maebashi
beneficiary
Gunmainterests
Trust
Comfort Hotel Tsubame-Sanjo
2-115, Sugoro, Sanjo-shi, Niigata
beneficiaryinterests
Trust
3-4, Ohdori-Nishi, Kitami-shi,
Comfort Hotel Kitami
beneficiary
Hokkaido
interests
Trust
2-6-8, Nishigotanda, Shinagawa-ku,
Hotel MyStays Gotanda Station
beneficiaryTokyo
interests
1-10 Kaidoue (and 59 other land
Trust
Hotel Epinard Nasu
parcels), Oaza-Takakuhei,
beneficiaryNasu-machi, Nasu-gun, Tochigi
interests
Flexstay Inn Nakanobu P2

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

54

Balance
Investment Appraisal value as of June
sheet
30, 2016
percentage
carrying(JPY million)(%)
value (JPY
(Note 5)(Note 4)
million)

283

284

0.1

403

(Note 7)

8,350

8,190

3.1

9,500

(Note 7)

2,792

2,735

1.0

3,360

(Note 7)

2,119

2,113

0.8

2,260

(Note 7)

7,801

7,700

2.9

8,480

(Note 7)

5,594

5,546

2.1

7,040

(Note 7)

3,821

3,790

1.4

4,520

(Note 7)

3,742

3,702

1.4

4,720

(Note 7)

2,198

2,165

0.8

2,360

(Note 7)

1,624

1,623

0.6

1,800

(Note 7)

1,277

1,276

0.5

1,430

(Note 7)

1,237

1,241

0.5

1,280

(Note 7)

980

969

0.4

1,150

(Note 7)

979

971

0.4

1,080

(Note 7)

906

901

0.3

1,030

(Note 7)

5,069

5,028

1.9

5,220

(Note 7)

1,170

1,165

0.4

1,210 (Note 10)

1,130

1,128

0.4

1,200 (Note 10)

3,160

3,154

1.2

3,290

1,148

1,147

0.4

1,180 (Note 10)

1,128

1,154

0.4

1,150 (Note 10)

1,010

1,014

0.4

1,040 (Note 10)

851

853

0.3

875 (Note 10)

24,674

24,6869.3

24,800(Note 8)20,981

20,896

7.9

21,300(Note 8)(Note 7 )Acquisition

Property
number(Note 1)

Location(Note 2)Name of property

price (JPYType ofownership million)(Note 3)

D45

Hotel MyStays Fukuoka Tenjin

3-5-7, Tenjin, Chuo-ku,
Fukuoka-shi, Fukuoka

D46

Hotel MyStays Hamamatsucho

1-18-14, Hamamatsucho,
Minato-ku, Tokyo

D47

Hotel MyStays Kanazawa

2-13-1, Hirooka, Kanazawa-shi,Ishikawa

D48

Takamatsu Tokyu REI Hotel

9-9, Hyogomachi, Takamatsu-shi,
Kagawa(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)Trust
beneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests

Balance
Investment Appraisal value as of June
sheet
30, 2016
percentage
carrying(JPY million)(%)
value (JPY
(Note 5)(Note 4)
million)

8,059

8,058

3.0

8,270

(Note 8)

7,959

7,961

3.0

8,010

(Note 8)13,761

13,776

5.2

13,900(Note 8)

2,139

2,149

0.8

2,160 (Note 10)

Subtotal (48 properties)

181,032

179,53767.9

232,905-

Total (124 properties)

266,619

261,471100.0

323,291-“Property number” indicates the use categorization of properties acquired by INV, with “A” standing for residential, “B” standing for office
and retail, “C” standing for parking lots and “D” standing for hotel, and the number assigned for each property. The number following“A”, “B”, “C” and “D” is assigned based on how early the acquisition was made, except that for acquisitions made at the same time alower number is assigned to the property with a greater acquisition price.
“Location” is, in principle, based on the indicated address (jyukyohyoji), except that if the jyukyohyoji system has not been implemented forsuch property, the location is based on the land number (banchi).
“Acquisition price” is the purchase price indicated in the real estate or trust beneficiary purchase agreement. Such price excludes
consumption tax and other taxes, and has been rounded down to the nearest hundred million yen.
“Investment percentage” is the ratio of the acquisition price to the aggregate acquisition price of INV’s portfolio, and has been rounded to thefirst decimal place.
“Appraisal value as of June 30, 2016” is the value appraised or determined based on research by the real estate appraiser as of the end of the
fiscal period in accordance with the Articles of Incorporation of INV and the regulations of the Investment Trust Association, Japan. The
real estate appraisers are as follows.
Real estate appraiser(Note 6)

Asset Research and Development Inc.

(Note 7)

Japan Real Estate Institute(Note 8)Morii Appraisal & Investment Consulting Inc.

(Note 9)Tanizawa Sogo Appraisal Co., Ltd.

(Note 10)

Daiwa Real Estate Appraisal Co., Ltd.

55

b

Capital expenditures for assets under management(a) Schedule for capital expenditures
The schedule for the principal capital expenditures for property maintenance construction, etc., as of the end of the
fiscal period for the real estate assets is as follows.
Estimated Cost (JPY thousand)

Total

Payment for
the Fiscal
Advance
Period ended
Payments
June 30,
2016

From July 2016
to December 2016

125,000――

Outer wall repair
work

From July 2016
to December 2016

90,000――

Shibuya-ku,
Tokyo

Entrance area
improvement work

From July 2016
to December 2016

53,900

Taito-ku,Tokyo

Outer wall repair
work

From July 2016
to December 2016

39,500――Name of Property

Location

PurposeScheduled Time of
Implementation

D01

Hotel MyStays
Kanda

Chiyoda-ku,
TokyoRenovation work

A53

Nishiwaseda
Cresent Mansion

Shinjuku-ku,
Tokyo

A75

Spacia Ebisu

A62

Lexel Mansion
Ueno Matsugaya(b) Capital expenditures for the fiscal period ended June 30, 2016
The principal construction work constituting capital expenditures for the real estate assets for the fiscal period ended
June 30, 2016 is as follows. Capital expenditures for the fiscal period totaled JPY 438,859 thousand, and together
with JPY 30,405 thousand in repair costs included in this fiscal period’s expenses, construction work totaling JPY
469,265 thousand was implemented.
PurposeTime of
Implementation

Payment(JPY thousand)Name of Property

Location

D01

Hotel MyStays
Kanda

Chiyoda-ku,
TokyoRenovation work

From January 2016
to June 2016

125,000

D12

Flexstay Inn
Iidabashi

Shinjuku-ku,
TokyoInstallation of additional
steel-frame staircases

From January 2016
to June 2016

9,250

D02

Hotel MyStays
Asakusa

Sumida-ku,
Tokyo

Replacement of automatic fire
alarm system

From January 2016
to June 2016

7,600

A53

Nishiwaseda
Cresent Mansion

Shinjuku-ku,
Tokyo

Replacement of intercom
systemFrom January 2016
to June 2016

5,800

B16

Ohki Aoba
Building

Sendai-shi,
Miyagi

Maintenance work on parking
lot equipment

From January 2016
to June 2016

5,000
286,209

Other construction

438,859

Total

56

(c) 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 large-scale maintenancerepairs in the medium to long term in accordance with the long-term maintenance plan for each property.
(Unit: JPY thousand)22nd Fiscal
23rd Fiscal
24th Fiscal
25th Fiscal
26th Fiscal
PeriodPeriodPeriodPeriodPeriodFrom
January 1,
From January 1, From July 1, 2014 From January 1, From July 1, 2015
Fiscal period
2016
toJune 30,
2014 to June 30, to December 31, 2015 to June 30, to December 31,
2016
2015
2015
2014
2014
Reserved funds at beginningof period
Amount reserved(Note)
Amount reversed(Note)
Amount carried over for
next fiscal period(Note)

524,730

579,682

738,365

852,699

982,750

199,177

268,495

283,147

352,490543,275

144,225

109,812

168,813

222,439

222,339

579,682

738,365

852,699

982,750

1,303,685

The amount reserved for the relevant fiscal period includes the reserves for acquired properties, and the amount reversed includes
the reserves for disposed properties.

57

c

Condition of income, etc. (From January 1, 2016 to June 30, 2016)(Unit: JPY thousand)

Property
No.

Property Name

Total ofrentalrevenue(i)Rent,commonarea fees

Total ofrentalrelated
Facility
expenses management
(ii)
fee

Other
incomeTaxes and Insurance
public dues expenses

Depreciation
expenses
(iii)

Other
expensesProfit andLoss((i)-(ii))NOI((i)-(ii)+(iii))

A26

Nisshin Palacestage Daitabashi

39,60536,2703,334

19,403

6,027

1,616

73

8,743

2,942

20,202

28,945

A27

Nisshin Palacestage
Higashi-Nagasaki

45,95240,961

4,991

24,742

7,169

2,701

112

12,842

1,916

21,21034,052A28

Growth Maison Gotanda

27,34926,772

577

8,991

2,764

1,328

44

4,355

500

18,35822,713A29

Growth Maison Kameido

34,40432,587

1,816

12,867

3,309

1,685

62

5,927

1,882

21,536

27,463

A30

Emerald House

50,75339,567

11,18524,269

7,411

2,562

119

9,543

4,633

26,48336,026

A31

Harmonie Ochanomizu

40,38938,271

2,118

15,674

3,461

1,878

66

7,138

3,128

24,71531,854A32

Suncrest Shakujii-Koen

34,70930,521

4,187

19,621

5,832

3,129

107

8,076

2,475

15,087

23,163A33

Growth Maison Shin-Yokohama

34,82331,904

2,918

17,211

5,299

2,411

81

6,178

3,240

17,612

23,790A34

Belle Face Ueno-Okachimachi

33,342

29,973

3,368

14,053

4,762

1,663

57

5,355

2,214

19,28924,644

A35

Grand Rire Kameido

26,61926,619

-

8,311

517

1,721

65

5,506

500

18,30823,814A36

Growth Maison Ikebukuro

26,40824,833

1,575

11,349

3,486

1,051

43

5,274

1,493

15,05920,333A37

Growth Maison Yoga

21,83920,768

1,071

10,742

3,352

1,370

44

4,067

1,907

11,097

15,165

A38

Route Tachikawa

20,70018,896

1,804

9,697

2,996

1,071

46

4,206

1,376

11,002

15,209

A39

Shibuya-Honmachi Mansion

20,47319,897

576

5,743

1,718

929

38

2,241

814

14,73016,971

A40

City Heights Kinuta

17,446

16,720

726

5,190

1,288

983

35

1,697

1,185

12,256

13,954

A41

Acseeds Tower Kawaguchi-Namiki

24,262

22,518

1,743

11,428

2,440

1,126

48

5,038

2,774

12,833

17,872

A42

Capital Heights Kagurazaka

18,752

18,119

633

7,487

2,580

1,089

41

2,481

1,294

11,265

13,746

A43

College Square Machida

17,484

17,484

-

3,303

365

506

41

1,890

500

14,18016,070

A44

Belair Meguro

16,436

15,366

1,069

6,864

2,020

875

28

2,324

1,615

9,571

11,896

A45

Wacore Tsunashima I

18,466

17,831

635

9,193

2,386

889

39

3,997

1,880

9,273

13,271

A46

Foros Nakamurabashi

18,546

16,686

1,860

9,842

2,804

989

37

4,782

1,228

8,703

13,486A47

Growth Maison Kaijin

21,91819,5632,355

15,810

5,395

2,125

91

6,700

1,498

6,108

12,808

A48

College Square Machiya

14,706

14,706

-

5,198

178

937

31

3,551

500

9,507

13,059A51

City House Tokyo Shinbashi

90,69287,652

3,039

35,667

13,9104,949

133

13,195

3,477

55,024

68,220

A52

Winbell Kagurazaka

107,429

98,385

9,044

40,06010,555

6,348

185

16,111

6,858

67,36883,480

A53

Nishiwaseda Cresent Mansion

72,347

69,0593,288

23,830

7,252

3,608

132

7,997

4,839

48,51756,514

A54

Lexington Square Akebonobashi

51,132

48,323

2,809

20,914

7,163

2,209

68

8,695

2,776

30,21738,913

A56

Casa Eremitaggio

31,69429,2952,399

16,760

4,038

1,674

54

9,115

1,878

14,93424,049A59

Towa City Coop Shinotsuka II

35,16834,054

1,113

13,738

4,799

1,393

61

5,190

2,293

21,42926,620A61

Bichsel Musashiseki

24,92323,3191,603

10,835

4,835

1,178

55

2,747

2,018

14,087

16,834

A62

Lexel Mansion Ueno Matsugaya

46,98832,001

14,987

21,165

9,603

1,875

67

8,367

1,251

25,822

34,190

A63

Towa City Coop Sengencho

59,00254,554

4,448

29,353

15,463

3,004

124

7,491

3,270

29,64837,139

A64

Royal Park Omachi

26,051

23,136

2,914

13,386

6,875

790

71

4,331

1,316

12,665

16,997

A65

Lexington Square Haginomachi

17,646

15,915

1,731

8,855

2,634

573

44

3,550

2,052

8,791

12,342

A66

Visconti Kakuozan

10,533

8,596

1,937

8,421

3,365

928

25

1,794

2,306

2,112

3,907

A71

Lexington Square Daitabashi

29,731

28,2391,492

17,055

3,397

1,545

49

8,020

4,041

12,675

20,696

A72

Lexington Square Honjo Azumabashi

17,76017,318

442

8,871

2,216

811

35

4,982

824

8,889

13,872

A73

AMS TOWER Minami 6-Jo

47,96446,096

1,868

25,490

6,540

2,144

141

14,123

2,540

22,47436,597

A75

Spacia Ebisu

199,105

177,611

21,49367,874

14,582

8,799

280

37,356

6,855

131,230

168,586

A76

Neo Prominence

65,59355,557

10,03627,171

10,1123,554

150

10,3073,047

38,422

48,729

A77

Invoice Shin-Kobe Residence

49,99345,4994,493

24,803

5,356

2,723

87

11,4905,146

25,18936,679

A78

Cosmo Court Motomachi

37,77835,858

1,919

20,258

4,243

2,306

85

9,974

3,648

17,51927,494

A79

Revest Honjin

31,26529,0562,209

15,493

4,184

1,801

72

7,438

1,996

15,772

23,210

A80

Revest Matsubara

28,95626,3602,596

15,526

4,109

1,868

66

7,042

2,439

13,42920,472

A81

Sun Terrace Minami Ikebukuro23,81721,459

2,358

9,816

2,561

908

35

4,917

1,393

14,001

18,918

A82

Alba Noritake Shinmachi

26,647

24,432

2,214

13,902

3,307

1,737

66

6,928

1,861

12,744

19,673

A83

Revest Meieki Minami

26,53924,581

1,958

14,223

4,008

1,662

70

6,965

1,517

12,315

19,281

A84

Revest Heian

24,07623,419657

10,993

2,409

1,404

48

6,399

731

13,083

19,482

A85

Vendir Hamaotsu Ekimae

33,371

28,727

4,643

20,423

8,602

1,956

81

7,013

2,768

12,94819,961

A86

Salvo Sala

25,79523,9301,864

12,904

3,749

1,561

54

5,444

2,094

12,891

18,335

A87

Excellente Kagurazaka

17,871

17,082789

10,386

2,417

773

33

4,194

2,967

7,485

11,679A88

Luna Court Edobori

21,49920,402

1,096

11,623

3,868

1,183

43

5,069

1,459

9,875

14,944

A89

Winntage Kobe Motomachi

21,396

20,231

1,165

14,604

3,953

1,588

53

5,811

3,197

6,792

12,604

A90

Queen's Court Fukuzumi

17,24015,573

1,666

8,630

2,450

751

30

3,200

2,197

8,609

11,810

A91

Corp Higashinotoin

17,464

16,349

1,115

8,921

2,894

915

38

3,799

1,274

8,542

12,34258

Property
No.

Property Name

Total ofrentalrevenue(i)Rent,commonarea fees

Total ofrentalrelated
Facility
expenses management
(ii)
fee

Other
incomeDepreciation

Taxes and Insurance
public dues expenses

expenses(iii)

Profit andLoss((i)-(ii))

OtherexpensesNOI((i)-(ii)+(iii))

A92

Belair Oimachi

15,582

14,931

650

5,748

1,458

671

25

2,675

917

9,834

A93

Siete Minami-Tsukaguchi

16,684

15,956

728

8,127

2,857

982

37

3,240

1,010

8,557

12,509
11,797

A94

Prime Life Sannomiya Isogami Koen

15,12914,269

859

7,832

2,315

848

27

3,426

1,214

7,296

10,722A95

HERMITAGE NANBA WEST

14,372

12,870

1,502

10,490

3,104

1,012

33

3,446

2,892

3,882

7,329

A96

Century Park Shinkawa 1-bankan

17,50014,368

3,132

8,472

2,242

874

48

3,981

1,325

9,028

13,010A97

West Avenue

11,037

10,198

839

8,100

2,854

563

26

3,044

1,612

2,937

5,981

A98

Little River Honmachibashi

13,951

13,872

78

6,588

1,815

970

30

2,874

898

7,362

10,236

A99

Prime Life Mikage

12,143

11,934

208

6,145

1,585

762

24

2,960

813

5,997

8,957

A100

City Court Kitaichijo

66,53559,712

6,822

37,492

8,899

2,580

238

22,5873,185

29,043

51,631

A101

Lieto Court Mukojima

53,91850,946

2,972

28,079

7,982

1,255

114

15,282

3,444

25,83841,121

A102

Lieto Court Nishi-Ojima

48,58448,352

232

18,583

4,589

1,088

90

12,264549

30,001

42,266

A103

Royal Parks
Momozaka (Note 2)

124,216

114,859

9,357

75,40735,764-274

39,011358

48,80887,820

A104

Royal Parks Shinden (Note 3)

108,933

101,210

7,723

52,665

17,496-305

34,659204

56,26790,926

B08

Kindai Kagakusha Building

37,06933,0594,009

22,572

6,103

4,540

87

10,673

1,167

14,49625,169111,255

Not disclosed(Note1)

B09

Shinjuku Island

B14

Lexington Plaza Nishigotanda

149,977

133,537

16,43965,241

25,051

12,393232

26,5191,044

84,736

B15

Cross Square NAKANO

39,41633,635

5,781

16,478

6,721

3,861

99

4,343

1,452

22,93827,281

B16

Ohki Aoba Building

39,081

31,155

7,925

19,968

9,362

2,025

123

7,479

978

19,112

26,591

B17

Lexington Plaza Hachiman

163,598

131,165

32,43372,761

44,981

5,651

199

21,134793

90,837111,972

B18

AEON TOWN Sukagawa

142,027

142,027-

93,93556,124

7,501

253

29,438616

48,092

77,530C01

Times Kanda-Sudacho 4th

2,700

2,700

-

260

-

259

-

1

-

2,439

2,440

D01

Hotel MyStays Kanda

88,98788,987-

21,248

-

4,418

99

16,216514

67,73883,954

D02

Hotel MyStays Asakusa

128,239

128,239-

21,716

-

3,906

123

17,144

540

106,523

123,668

D03

Hotel MyStays Kyoto-Shijo

358,013358,013-59,546-

10,476280

48,252537

298,466

346,718

D04

MyStays Shin-Urayasu ConferenceCenter

179,110

179,110-

50,113

-

8,160

225

41,197529

128,997

170,194

D05

Hotel MyStays Maihama

148,450

148,450-

39,092

-

3,194

113

35,270514

109,358

144,628

D06

Hotel Vista Premio Dojima

206,141

206,141-

62,6598,208

11,785311

41,838515

143,481

185,320

D07

Hotel MyStays Nagoya-Sakae

180,607

180,607-

68,251

17,1634,614

269

45,674529

112,356

158,030

D08

Hotel MyStays Sakaisuji-Honmachi

194,326

194,326-

26,394

-

6,410

134

19,320528

167,932

187,252

D09

Hotel MyStays Yokohama

111,541

111,541-

31,872

-

4,476

220

26,659515

79,668106,328

D10

Hotel MyStays Nippori

72,466

72,466-

17,316

-

1,755

70

14,961

528

55,14970,111

D11

Hotel MyStays
Fukuoka-Tenjin-Minami

110,274

110,274-

19,413

-

5,084

111

13,686

530

90,861

104,547

D12

Flexstay Inn Iidabashi

52,78952,789-15,318

-

4,503

102

10,184528

37,47047,655

D13

Hotel MyStays Ueno Inaricho

53,901

53,901-

15,536

-

1,478

51

13,476

530

38,364

51,840

D14

Flexstay Inn Shinagawa

48,45348,453

-

9,065

-

1,670

42

6,824

528

39,387

46,211

D15

Flexstay Inn Tokiwadai

64,93264,932-

11,465

-

3,424

91

7,419

528

53,46660,886

D16

Flexstay Inn Sugamo

55,65755,657-

14,219

-

2,883

75

10,731

528

41,43852,170D17

Hotel MyStays Otemae

137,938

137,938-

14,059

-

3,612

128

9,790

527

123,879

133,670

D18

Flexstay Inn Kiyosumi Shirakawa

40,02440,024-

11,503

-

3,388

88

7,497

528

28,52036,018

D19

Flexstay Inn Nakanobu P1

22,91422,914

-

5,679

-

950

28

4,172

529

17,234

21,406

D20

Flexstay Inn Nakanobu P2

12,15912,159

-

2,731

-

526

16

1,659

529

9,427

11,087D21

APA Hotel Yokohama-Kannai

231,479

231,479-

81,951

-

5,175

297

75,951

526

149,528

225,479

D22

Hotel Nets Hakodate

110,080

110,080-

37,259

-

5,166

209

31,352531

72,821

104,173

D23

Flexstay Inn Shirogane

58,122

58,122

-

8,813

-

959

62

7,262

528

49,30956,572

D24

Hotel MyStays Haneda

177,466

177,466-

63,920

-

4,085

211

59,164

458

113,546

172,710

D25

Hotel MyStays Kameido P1

176,496

176,496-

37,120

-

3,195

201

33,295429

139,375

172,670

D26

Hotel MyStays Ueno Iriyaguchi

106,248

106,248-

23,916

2,455

624

98

20,307430

82,331

102,639

D27

Hotel MyStays Kameido P2

123,608

123,608-

28,190

-

1,921

124

25,715428

95,418

121,134

D28

Hotel Vista Shimizu

67,741

67,741-

24,779

480

2,061

111

21,697428

42,96264,659D29Super Hotel
Shinbashi/ Karasumoriguchi

39,42639,426

-

7,434

704

1,554

46

4,717

410

31,992

36,710

D30

Flexstay Inn Higashi-Jujo

40,114

40,114

-

6,874

-

973

58

5,413

429

33,23938,653

D31

Hotel MyStays Utsunomiya

77,93977,939-23,984

-

6,866

401

16,300415

53,95570,256

D32

Flexstay Inn Kawasaki-Kaizuka

31,95531,955-

11,320

889

408

46

9,544

430

20,63430,179D33

Comfort Hotel Toyama

35,92835,928-

11,211

60

1,895

99

8,745

411

24,71633,462

D34

Flexstay Inn Kawasaki-Ogawacho

29,13629,136

-

6,604

-

480

31

5,665

426

22,532

28,197

D35

Flexstay Inn Ekoda

113,216

113,216-

34,699

-

2,347

130

31,792428

78,517110,31059

Property
No.

Property Name

Total ofrentalrevenue(i)Rent,commonarea fees

Total ofrentalrelated
Facility
expenses management
(ii)
fee

Other
income

D36

Super Hotel Tokyo-JR Tachikawa
Kitaguchi

31,787

31,787-

D37Super Hotel JR Ueno-iriyaguchi

27,27527,275

D38

Hotel MyStays
Shinsaibashi (Note 2)

84,282

84,282

D39

Comfort Hotel Kurosaki (Note 2)

33,616

33,616-

12,954

D40

Comfort Hotel Maebashi (Note 2)

38,901

38,901-

21,520

D41

Comfort Hotel
Tsubame-Sanjo (Note 2)

31,00329,611

1,392

9,881

D42

Comfort Hotel Kitami (Note 2)

26,87926,879-D43

Hotel MyStays
Gotanda Station (Note 3)

254,397

253,903494

D44

Hotel Epinard Nasu (Note 3)

627,563

627,563

109,967

109,967

77,364
49,162

D45
D46

Hotel MyStays
Fukuoka Tenjin (Note 3)
Hotel MyStays
Hamamatsucho (Note 3)

D47

Hotel MyStays Kanazawa (Note 4)

D48

Takamatsu Tokyu REI
Hotel (Note 4)
Total(Note 1)
(Note 2)
(Note 3)(Note 4)

Taxes and Insurance
public dues expenses

Depreciation
expenses
(iii)

Other
expensesProfit andLoss((i)-(ii))
20,015NOI((i)-(ii)+(iii))

11,771

1,341

1,421

64

8,482

461

28,498

-

8,944

1,020

1,071

-

16,707

-

-

44

6,346

461

18,331

24,67768

16,261377

67,57583,837

648

-

5,145

-

75

11,850379

20,661

32,512

94

15,865414

17,38033,246

306

-

89

9,123

361

21,121

30,245

10,819

650

-

73

9,684

411

16,05925,744

19,480

1,004

-

239

18,031

205

234,917

252,948-

162,302

4,717

-

743

156,625215

465,261

621,887-

20,535--80

20,248205

89,432

109,680

77,364-

13,523--41

13,276

204

63,84077,11749,162

-

9,382

-

-

20

9,323

37

39,77949,103

7,591

6,784

807

1,403

38

-

40

1,286

37

6,187

7,474

8,158,220

7,889,877

268,3422,697,986

554,149

281,065

12,6691,676,736

173,3645,460,234

7,136,971

Not disclosed because the consent of the tenant was not obtained.
These properties were acquired on January 22, 2016, and the operation period is from January 22, 2016 to June 30, 2016.
These properties were acquired on March 31, 2016, and the operation period is from March 31, 2016 to June 30, 2016.
These properties were acquired on June 15, 2016, and the operation period is from June 15, 2016 to June 30, 2016.

60

(3)

Tenant SummaryaSummary of lease conditions by property（As of June 30, 2016)
Leasable Area
2(m )(Note 1)

Leased Area
2(m )(Note 2)

LeasableUnits(units)(Note 3)Nisshin Palacestage Daitabashi

1,771.13

1,718.47

98

95

1 Best Property Corporation

39,605

0.5

Pass throughmaster lease

A27

Nisshin Palacestage HigashiNagasaki

2,681.94

2,500.76

60

56

1 Best Property Corporation

45,952

0.6

Pass throughmaster lease

A28

Growth Maison Gotanda

1,051.50

1,051.50

48

48

1

27,3490.3

Pass throughmaster lease

A29

Growth Maison Kameido

1,367.96

1,306.58

66

63

1 Mitsui Home Estate Co., Ltd.

34,404

0.4

Pass throughmaster lease

A30

Emerald House

2,152.31

2,152.31

96

96

1 Tokyo Gakusei-life Co., Ltd.

50,753

0.6

Pass throughmaster lease

A31

Harmonie Ochanomizu

1,748.24

1,748.24

65

65

1

40,3890.5

Pass throughmaster lease

A32

Suncrest Shakujii-Koen

3,029.16

2,554.28

29

24

1 Mitsui Home Estate Co., Ltd.

34,7090.4

Pass throughmaster lease

A33

Growth Maison Shin-Yokohama

1,858.44

1,667.12

68

61

1

34,823

0.4

Pass throughmaster lease

A34

Belle Face Ueno-Okachimachi

1,351.11

1,328.76

64

63

1 Mainichicomnet Co., Ltd.

33,342

0.4

Pass throughmaster lease

A35

Grand Rire Kameido

1,562.26

1,562.26

72

72

1 J.S.B. Co., Ltd.

26,6190.3

Guaranteed
rent

A36

Growth Maison Ikebukuro

952.89929.604241

126,4080.3

Pass throughmaster lease

A37

Growth Maison Yoga

1,015.34

989.5839

38

1 Mitsui Home Estate Co., Ltd.

21,8390.3

Pass throughmaster lease

A38

Route Tachikawa

1,368.57

1,275.69

24

22

1

20,700

0.3

Pass throughmaster lease

A39

Shibuya-Honmachi Mansion

1,167.50

1,119.76

25

23

1

20,473

0.3

Pass throughmaster lease

A40

City Heights Kinuta

1,235.93

1,235.93

19

19

1 Mitsui Home Estate Co., Ltd.

17,446

0.2

Pass throughmaster lease

A41

Acseeds Tower
Kawaguchi-Namiki

1,210.74

1,147.32

57

54

1 Access Group, Inc.

24,262

0.3

Pass throughmaster lease

A42

Capital Heights Kagurazaka

1,126.65

1,095.18

26

25

1 Mitsui Home Estate Co., Ltd.

18,752

0.2

Pass throughmaster lease

A43

College Square Machida

1,047.75

1,047.75

62

62

1 Mainichicomnet Co., Ltd.

17,484

0.2

Guaranteed
rent

A44

Belair Meguro

557.05535.5125

24

116,436

0.2

Pass throughmaster lease

A45

Wacore Tsunashima I

907.46889.515049

118,466

0.2

Pass throughmaster lease

A46

Foros Nakamurabashi

815.77784.9037

36

1 Mitsui Home Estate Co., Ltd.

18,546

0.2

Pass throughmaster lease

A47

Growth Maison Kaijin

2,040.27

1,993.03

34

33

1 Mitsui Home Estate Co., Ltd.

21,9180.3

Pass throughmaster lease

A48

College Square Machiya

871.35871.3543

43

1 Mainichicomnet Co., Ltd.

14,706

0.2

Guaranteed
rent

A51

City House Tokyo Shinbashi

3,364.00

3,234.05

8683

1 Mitsui Home Estate Co., Ltd.

90,692

1.1

Pass throughmaster lease

A52

Winbell Kagurazaka

4,032.70

3,975.60

118

116

1 Mitsui Home Estate Co., Ltd.

107,429

1.3

Pass throughmaster lease

A53

Nishiwaseda Cresent Mansion

4,310.77

4,310.77

69

69

1

72,347

0.9

Pass throughmaster lease

A54

Lexington Square Akebonobashi

1,987.88

1,896.21

88

84

1 Mitsui Home Estate Co., Ltd.

51,132

0.6

Pass throughmaster lease

A56

Casa Eremitaggio

1,197.19

1,197.19

17

17

1

31,694

0.4

Pass throughmaster lease

A59

Towa City Coop Shinotsuka II

1,627.13

1,588.26

58

57

1 Mitsui Home Estate Co., Ltd.

35,168

0.4

Pass throughmaster lease

A61

Bichsel Musashiseki

1,220.24

1,168.30

70

67

1 Mitsui Home Estate Co., Ltd.

24,923

0.3

Pass throughmaster lease

A62

Lexel Mansion Ueno Matsugaya

1,969.45

1,969.45

29

29

1

46,988

0.6

Pass throughmaster lease

A63

Towa City Coop Sengencho

3,426.36

3,122.84

154

140

1

59,002

0.7

Pass throughmaster lease

A64

Royal Park Omachi

1,929.59

1,865.35

51

49

1 One-Eyed Capital Advisers

26,051

0.3

Pass throughmaster lease

Property
No.

Property Name

A26

LeasedUnits(units)(Note 4)61

Numberof tenants(Note 5)Tenants (Note 6)

Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd.

Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd
Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd
Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd

Pacific Development &Management Co., Ltd
Pacific Development &Management Co., Ltd

Rental Revenue(JPY thousand)(Note7)

Ratio of
RentalRevenue(%)

Type of
Lease(Note 8)

Leasable Area
2(m )(Note 1)

Leased Area
2(m )(Note 2)

LeasableUnits(units)(Note 3)

LeasedUnits(units)(Note 4)

1,528.58

1,528.58

39

39

1 One-Eyed Capital Advisers

17,646

0.2

Pass throughmaster lease705.75705.758

8

1 Mitsui Home Estate Co., Ltd.

10,5330.1

Pass throughmaster lease

1,430.64

1,390.60

43

42

1 Nisshin Kanzai K.K. (Note 9)29,731

0.4

Pass throughmaster lease784.74738.1033

31

1 Nisshin Kanzai K.K. (Note 9)17,760

0.2

Pass throughmaster lease

AMS TOWER Minami 6-Jo

4,460.56

3,905.53

120

106

1 Big Service Co., Ltd.

47,964

0.6

Pass throughmaster lease

A75

Spacia Ebisu

7,794.91

7,147.78

109

100

1

199,105

2.4

Pass throughmaster lease

A76

Neo Prominence

3,574.70

3,440.35

52

50

1 Goodworks Co., Ltd.

65,5930.8

Pass throughmaster lease

A77

Invoice Shin-Kobe Residence

2,773.71

2,724.13

81

79

1 Sohgoh Real Estate (Note 10)49,993

0.6

Pass throughmaster lease

A78

Cosmo Court Motomachi

2,310.49

2,225.98

82

79

1 Global Community Co., Ltd

37,778

0.5

Pass throughmaster lease

A79

Revest Honjin

1,933.80

1,885.62

80

78

1 Mininet, Inc

31,265

0.4

Pass throughmaster lease

A80

Revest Matsubara

1,955.40

1,734.1370

62

1 Mininet, Inc

28,956

0.4

Pass throughmaster lease

A81

Sun Terrace Minami Ikebukuro

898.70898.7038

38

1 Goodworks Co., Ltd.

23,817

0.3

Pass throughmaster lease

A82

Alba Noritake Shinmachi

1,731.68

1,683.48

64

62

1 Mininet, Inc.

26,647

0.3

Pass throughmaster lease

A83

Revest Meieki Minami

1,634.60

1,579.51

61

59

1 Mininet, Inc.

26,5390.3

Pass throughmaster lease

A84

Revest Heian

1,554.03

1,554.0340

40

1 Mininet, Inc.

24,076

0.3

Pass throughmaster lease

A85

Vendir Hamaotsu Ekimae

2,670.66

2,544.87

81

77

1 Mininet, Inc.

33,371

0.4

Pass throughmaster lease

A86

Salvo Sala

1,428.12

1,428.12

54

54

1 Daygran, Inc.

25,795

0.3

Pass throughmaster lease

A87

Excellente Kagurazaka

701.92681.4033

32

1 Goodworks Co., Ltd.

17,871

0.2

Pass throughmaster lease

A88

Luna Court Edobori

1,185.50

1,138.36

50

48

1 Nihon Housing Co., Ltd.

21,4990.3

Pass throughmaster lease

A89

Winntage Kobe Motomachi

1,433.35

1,232.99

57

49

1 Global Community Co., Ltd.

21,396

0.3

Pass throughmaster lease

A90

Queen's Court Fukuzumi

765.18712.6025

23

1 Goodworks Co., Ltd.

17,240

0.2

Pass throughmaster lease

A91

Corp Higashinotoin

1,029.05

934.1442

38

1 Global Community Co., Ltd.

17,464

0.2

Pass throughmaster lease

A92

Belair Oimachi

530.60530.6026

26

1 Goodworks Co., Ltd.

15,582

0.2

Pass throughmaster lease

A93

Siete Minami-Tsukaguchi

1,020.86

995.5840

39

1 Goodworks Co., Ltd.

16,684

0.2

Pass throughmaster lease

A94

Prime Life Sannomiya Isogami
Koen

789.12739.8032

30

1 Global Community Co., Ltd.

15,1290.2

Pass throughmaster lease

A95

HERMITAGE NANBA WEST

992.76992.7621

21

1 Daygran, Inc.

14,372

0.2

Pass throughmaster lease

A96

Century Park Shinkawa
1-bankan

1,477.62

1,410.28

44

42

1 Goodworks Co., Ltd.

17,500

0.2

Pass throughmaster lease

A97

West Avenue

794.80675.6040

34

1 Joint Property Co., Ltd.

11,037

0.1

Pass throughmaster lease

A98

Little River Honmachibashi

974.81974.8131

31

1 Goodworks Co., Ltd.

13,951

0.2

Pass throughmaster lease

A99

Prime Life Mikage

761.18736.1428

27

1 Global Community Co., Ltd.

12,1430.1

Pass throughmaster lease

A100

City Court Kitaichijo

5,230.18

5,002.95

127

121

1 Big Service Co., Ltd.

66,535

0.8

Pass throughmaster lease

A101

Lieto Court Mukojima

2,940.20

2,846.03

82

80

1 Taisei Housy Property

53,918

0.7

Pass throughmaster lease

A102

Lieto Court Nishi-Ojima

2,048.28

2,007.00

91

89

1 Taisei Housy Property

48,584

A103

Royal Parks
Momozaka

8,776.26

8,776.26

147

147

4 Daiwa Living Co., Ltd.

124,216

A104

Royal Parks Shinden

15,797.29

15,797.29

248

248

4 Daiwa Living Co., Ltd.

108,933

B08

Kindai Kagakusha Building

1,451.54

1,451.54

13

13

1 Sohgoh Real Estate (Note 10)

37,069

B09

Shinjuku Island

526.43526.431

1

1 Not disclosed (Note 11)

Property
No.

Property Name

A65

Lexington Square Haginomachi

A66

Visconti Kakuozan

A71

Lexington Square Daitabashi

A72

Lexington Square Honjo
Azumabashi

A73

62

Numberof tenants(Note 5)Tenants (Note 6)

Pacific Development &Management Co., Ltd

Rental Revenue(JPY thousand)(Note7)

Not disclosed(Note 11)

Ratio of
RentalRevenue(%)

Type of
Lease(Note 8)Pass throughmaster lease
Guaranteed
rent and pass
1.5
throughmaster lease
Guaranteed
rent and pass
1.3
throughmaster lease
Pass through0.5
master lease
0.6

Not
disclosed(Note 11)－

Leasable Area
2(m )(Note 1)

Leased Area
2(m )(Note 2)

LeasableUnits(units)(Note 3)

LeasedUnits(units)(Note 4)

Lexington Plaza Nishigotanda

6,033.58

6,033.58

11

11

7 Community One Co., Ltd.

B15

Cross Square NAKANO

2,145.00

1,803.64

45

35

1

B16

Ohki Aoba Building

2,178.37

1,820.39

13

12

B17

Lexington Plaza Hachiman

8,419.15

8,319.97

18

B18

AEON TOWN Sukagawa

18,440.58

18,440.58

C01

Times Kanda-Sudacho 4th

81.04

81.04

Property
No.

Property Name

B14

Numberof tenants(Note 5)Tenants (Note 6)

Rental Revenue(JPY thousand)(Note7)

Ratio of
RentalRevenue(%)

Type of
Lease(Note 8)

149,977

1.8－

39,416

0.5

Pass throughmaster lease

1 One-Eyed Capital Advisers

39,081

0.5

Pass throughmaster lease17

1 Tokyo Biso Kogyo Corporation

163,598

2.0

Pass throughmaster lease

1

1

1 AEONTOWN Co., Ltd.

142,027

1.7

－

1

1

1 Times24. Co., Ltd.

2,700

0.0

－

Shin-ei Real EstateBusiness Co., Ltd.

Fixed rent
plus variable
1.1
rent type
operation
Fixed rent
plus variable
1.6
rent type
operation
Fixed rent
plus variable
4.4
rent type
operation
Fixed rent
plus variable
2.2
rent type
operation

D01

Hotel MyStays Kanda

2,585.72

2,585.72

126

126

1

MyStays Hotel Management
Co., Ltd.

88,987

D02

Hotel MyStays Asakusa

3,327.38

3,327.38

161

161

1

MyStays Hotel Management
Co., Ltd.

128,239

D03

Hotel MyStays Kyoto-Shijo

7,241.51

7,241.51

225

225

1

MyStays Hotel Management
Co., Ltd.

358,013

D04

MyStays Shin-Urayasu
Conference Center

6,232.30

6,232.30

175

175

1

MyStays Hotel Management
Co., Ltd.

179,110

D05

Hotel MyStays Maihama

2,456.36

2,456.36

90

90

1

MyStays Hotel Management
Co., Ltd.

148,450

1.8

D06

Hotel Vista Premio Dojima

9,445.32

9,445.32

153

153

1 MGH Master Lease Co., Ltd.

206,141

2.5

D07

Hotel MyStays Nagoya-Sakae

9,064.71

9,064.71

279

279

1

Yugen Kaisha Nagoya HotelManagement

180,607

2.2

D08

Hotel MyStays
Sakaisuji-Honmachi

4,188.83

4,188.83

191

191

1

MyStays Hotel Management
Co., Ltd.

194,326

2.4

D09

Hotel MyStays Yokohama

7,379.43

7,379.43

190

190

1

MyStays Hotel Management
Co., Ltd.

111,541

1.4

D10

Hotel MyStays Nippori

1,719.29

1,719.29

93

93

1

MyStays Hotel Management
Co., Ltd.

72,4660.9

D11

Hotel MyStays
Fukuoka-Tenjin-Minami

3,412.71

3,412.71

177

177

1

MyStays Hotel Management
Co., Ltd.

110,274

1.4

D12

Flexstay Inn Iidabashi

2,953.38

2,953.38

62

62

1

MyStays Hotel Management
Co., Ltd.

52,7890.6

D13Hotel MyStays Ueno Inaricho

1,150.76

1,150.76

72

72

1

MyStays Hotel Management
Co., Ltd.

53,901

0.7

D14

Flexstay Inn Shinagawa

1,134.52

1,134.52

55

55

1

MyStays Hotel Management
Co., Ltd.

48,4530.6

D15

Flexstay Inn Tokiwadai

2,539.75

2,539.75

130

130

1

MyStays Hotel Management
Co., Ltd.

64,9320.8

D16

Flexstay Inn Sugamo

2,089.86

2,089.86

105

105

1

MyStays Hotel Management
Co., Ltd.

55,6570.7

D17Hotel MyStays Otemae

4,956.66

4,956.66

111

111

1

MyStays Hotel Management
Co., Ltd.

137,938

1.7

D18

Flexstay Inn Kiyosumi Shirakawa

2,673.64

2,673.64

56

56

1

MyStays Hotel Management
Co., Ltd.

40,0240.5

D19

Flexstay Inn Nakanobu P1

770.56770.5639

39

1

MyStays Hotel Management
Co., Ltd.

22,9140.3

D20

Flexstay Inn Nakanobu P2

391.49391.4922

22

1

MyStays Hotel Management
Co., Ltd.

12,1590.1

63Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation

Property
No.

Property Name

Leasable Area
2(m )(Note 1)

Leased Area
2(m )(Note 2)

LeasableUnits(units)(Note 3)

LeasedUnits(units)(Note 4)

Numberof tenants(Note 5)Tenants (Note 6)

Rental Revenue(JPY thousand)(Note7)

Ratio of
RentalRevenue(%)

Type of
Lease(Note 8)Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation

D21

APA Hotel Yokohama Kannai

6,568.51

6,568.51

452

452

1 APA Hotel Kabushiki Kaisha

231,479

2.8

D22Hotel Nets Hakodate

7,961.26

7,961.26

205

205

1

Hakodate Hospitality Godo
Kaisha110,080

1.3

D23

Flexstay Inn Shirogane

1,754.06

1,754.06

84

84

1

MyStays Hotel Management
Co., Ltd.

58,1220.7

D24

Hotel MyStays Haneda

5,400.16

5,400.16

174

174

1

MyStays Hotel Management
Co., Ltd.

177,466

2.2

D25

Hotel MyStays Kameido P1

4,349.67

4,349.67

266

266

1

MyStays Hotel Management
Co., Ltd.

176,496

2.2

D26

Hotel MyStays Ueno Iriyaguchi

2,247.92

2,247.92

97

97

1

MyStays Hotel Management
Co., Ltd.

106,248

1.3

D27

Hotel MyStays Kameido P2

2,793.99

2,793.99

177

177

1

MyStays Hotel Management
Co., Ltd.

123,608

1.5

D28

Hotel Vista Shimizu

3,559.81

3,559.81

152

152

1

Vista Hotel Management Co.,Ltd.

67,741

0.8

D29Super Hotel
Shinbashi/ Karasumoriguchi

1,403.89

1,403.89

74

74

1 Super Hotel Co., Ltd.

39,4260.5

D30

Flexstay Inn Higashi-Jujo

1,714.53

1,714.53

89

89

1

MyStays Hotel Management
Co., Ltd.

40,1140.5

D31

Hotel MyStays Utsunomiya

11,733.23

11,733.23

126

126

1

MyStays Hotel Management
Co., Ltd.

77,9391.0

D32

Flexstay Inn Kawasaki-Kaizuka

1,190.57

1,190.57

64

64

1

MyStays Hotel Management
Co., Ltd.

31,955

0.4

D33

Comfort Hotel Toyama

3,305.64

3,305.64

150

150

1 Greens Co., Ltd.

35,9280.4

D34

Flexstay Inn
Kawasaki-Ogawacho

725.60725.606262

1MyStays Hotel Management
Co., Ltd.

29,1360.4

D35

Flexstay Inn Ekoda

3,932.93

3,932.93

210

210

1

MyStays Hotel Management
Co., Ltd.

113,216

1.4

D36Super Hotel Tokyo-JR Tachikawa
Kitaguchi

1,832.97

1,832.97

96

96

1 Super Hotel Co., Ltd.

31,787

0.4

Fixed rent

D37Super Hotel JR Ueno-iriyaguchi

1,279.16

1,279.16

69

69

1 Super Hotel Co., Ltd.

27,275

0.3

Fixed rent

D38

Hotel MyStays Shinsaibashi

1,942.01

1,942.01

57

57

1

84,282

1.0

Fixed rent
plus variable
rent type
operation

D39

Comfort Hotel Kurosaki

3,207.60

3,207.60

151

151

1 Greens Co., Ltd.

33,616

0.4

Fixed rent

D40

Comfort Hotel Maebashi

3,660.96

3,660.96

154

154

2 Greens Co., Ltd.

38,901

0.5

Fixed rent

D41

Comfort Hotel Tsubame-Sanjo

3,099.90

3,099.90

133

133

2 Greens Co., Ltd.

31,003

0.4

Fixed rent

D42

Comfort Hotel Kitami

3,009.50

3,009.50

127

127

1 Greens Co., Ltd.

26,8790.3

Fixed rent

D43

Hotel MyStays Gotanda Station

8,752.42

8,752.42

335

335

1

MyStays Hotel Management
Co., Ltd.

254,397

3.1

D44

Hotel Epinard Nasu

37,702.33

37,702.33

310

310

1

Naqua Hotels and Resorts
Management Co., Ltd.

627,563

7.7

D45

Hotel MyStays Fukuoka Tenjin

5,083.06

5,083.06

217

217

1

MyStays Hotel Management
Co., Ltd.

109,967

1.3

D46

Hotel MyStays Hamamatsucho

1,951.90

1,951.90

105

105

1

MyStays Hotel Management
Co., Ltd.

77,3640.9

D47

Hotel MyStays Kanazawa

13,250.03

13,250.03

261

261

1

MyStays Hotel Management
Co., Ltd.

49,162

0.6

D48

Takamatsu Tokyu REI Hotel

7,148.17

7,148.17

193

193

3 Tokyu Hotels Co., Ltd.

7,591

0.1

64

MyStays

HotelManagement

Co., Ltd.

Fixed rent
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation

Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rent
plus variable
rent type
operation
Fixed rentProperty
No.

Property Name

Total

Leasable Area
2(m )(Note 1)

Leased Area
2(m )(Note 2)

LeasableUnits(units)(Note 3)

LeasedUnits(units)(Note 4)

Numberof tenants(Note 5)409,928.31

403,886.39

11,313

11,145140

Tenants (Note 6)－

Rental Revenue(JPY thousand)(Note7)
8,158,220

Ratio of
RentalRevenue(%)
100.0Type of
Lease(Note 8)－(Note 1)

“Leasable Area” is based on the portion of each property or property in trust that is owned by INV and leasable as residential properties,
offices, retail spaces, etc.

(Note 2)

“Leased Area” is the portion of leasable area for which there is actually a lease agreement and is based on the area indicated in the leaseagreements.

(Note 3)

“Leasable Units” with respect to hotel properties mean the total number of guest rooms and leasable retail spaces, etc. for each
property or property in trust, and with respect to properties other than hotel properties, means the total number of reasable units andretail spaces, etc. for each property or property in trust.

(Note 4)

“Leased Units” with respect to hotel properties mean the total number of guest rooms, retail spaces, etc. actually leased to tenants or
end-tenants based on lease agreements, and with respect to properties other than hotel properties, means the total number of units,
retail spaces, etc. actually leased to tenants or end-tenants based on lease agreements.

(Note 5)

“Number of Tenants” is calculated by counting all lessees who have entered into a direct lease agreement with INV or the trustee as
one tenant, and in cases where a tenant rents multiple rental rooms in the same property, such tenant is also counted as one tenant.

(Note 6)

“Tenant” is the master lessee where there is a master lease agreement between INV or the trustee and a master lease company, and theprincipal lessee where there are direct lease agreements with end-tenants.

(Note 7)

“Rental Revenue” is the aggregate rent revenue for each property for the fiscal period, rounded down to the nearest thousand yen.

(Note 8)With respect to the properties for which a master lease agreement has been entered into, the type of lease (either a pass-throughmaster lease or a guaranteed rent) is indicated. “Pass-through master lease” is defined as a lease under which, pursuant to thepass-through master lease agreement entered into between the master lease company and INV or the trustee, the amount equal to therent under the sublease agreement between the master lease company and the end tenant shall be paid to INV or the trustee.
“Guaranteed rent” is defined as a lease under which a specified rent shall be paid to INV or the trustee, regardless of the rent under
the sublease agreement between the master lease company and the end tenant. Moreover, with respect to hotel properties, the typeof rent received from the relevant operator (either a fixed-rent or a fixed rent plus variable rent type operation) is indicated.
“Fixed-rent” is defined as an agreement under which INV or the trustee shall receive a specified rent, regardless of the operational
results of the relevant hotel. “Fixed rent plus variable rent type operation” is defined as an agreement under which INV or thetrustee shall receive rent that varies based on the GOP (Gross Operating Profit), in addition to a fixed rent.

(Note 9)Nisshin Jyutaku Support K.K. merged with Nisshin Kanzai K.K. on April 1, 2016, and its company name was change to Nisshin
Kanzai K.K.

(Note 10) Sohgoh Real Estate transferred its leasing business to Haseko Livenet, Inc. on July 1, 2016.
is Haseko Livenet, Inc.
(Note 11) Not disclosed because the consent of the tenant was not obtained.

65

The tenant as of the date of this reportb

Occupancy trend

PropertyNo.

21 Fiscal
PeriodAs ofthe endof Dec.
2013

22nd Fiscal
PeriodAs ofthe endof Jun.
2014

23rd Fiscal
PeriodAs ofthe endof Dec.
2014

24 Fiscal
PeriodAs ofthe endof Jun.
2015

25 Fiscal
PeriodAs ofthe endof Dec.
2015

95.0

94.1

90.0

96.9

96.1

97.1

96.0

98.0

95.0

96.2

97.0

97.4

97.7

96.3

94.9

96.8

99.1

99.1

99.1

93.4

89.8

93.2

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

89.3

89.3

86.2

95.4

97.0

97.0

100.0

100.0

96.9

97.0

95.5

98.9

100.0

98.0

100.0

97.9

97.9

95.8

97.1

100.0

100.0

100.0

97.5

91.2

93.5

88.3

90.8

100.0

100.0

100.0

100.0

100.0

100.0

95.3

97.0

97.0

97.4

97.0

97.0

95.8

95.0

81.5

81.5

84.3

(Unit: %)
st

A26
A27
A28
A29
A30
A31
A32
A33
A34
A35
A36
A37
A38
A39
A40
A41
A42
A43
A44
A45
A46
A47
A48
A51
A52
A53
A54
A56
A59
A61
A62
A63
A64
A65
A66

Property Name

Nisshin
Palacestage
Daitabashi
Nisshin
Palacestage
Higashi-Nagasaki
Growth Maison
GotandaGrowth Maison
Kameido
Emerald House

th

th

th

26 Fiscal Period
As ofthe endof Jan.
2016

As ofthe endof Feb.
2016

As ofthe endof Mar.
2016

As ofthe endof Apr.
2016

As ofthe endof May2016

As ofthe endof Jun.
2016

Harmonie
Ochanomizu
Suncrest
Shakujii-Koen
Growth Maison
Shin-Yokohama
Belle Face
Ueno-OkachimachiGrand Rire
KameidoGrowth Maison
Ikebukuro
Growth Maison
Yoga

94.1

86.9

95.6

97.0

97.2

98.5

95.5

95.6

90.0

91.4

89.7

100.0

98.3

98.3

100.0

100.0

100.0

95.1

100.0

100.0

100.0

98.3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

97.6

90.4

90.5

88.1

97.6

97.6

100.0

100.0

97.6

97.6

97.6

100.0

97.3

94.9

94.9

94.8

94.9

92.3

94.9

97.4

97.4

97.5

Route Tachikawa

83.5

96.6

96.6

96.6

96.6

100.0

100.0

96.6

93.2

93.2

93.2

96.4

100.0

91.3

89.9

96.4

100.0

100.0

100.0

97.9

97.9

95.9

94.6

100.0

100.0

94.6

89.2

94.6

100.0

100.0

100.0

100.0

100.0

96.5

93.0

86.0

100.0

86.0

86.0

87.7

96.5

96.5

94.8

94.8

Shibuya-Honmach
i Mansion
City Heights
KinutaAcseeds Tower
Kawaguchi-Namiki
Capital Heights
Kagurazaka
College Square
MachidaBelair Meguro
WacoreTsunashima I
ForosNakamurabashi
Growth Maison
KaijinCollege Square
MachiyaCity House Tokyo
Shinbashi
WinbellKagurazaka
Nishiwaseda
Cresent Mansion
Lexington Square
Akebonobashi
Casa Eremitaggio
Towa City Coop
Shinotsuka II
BichselMusashiseki
Lexel Mansion
Ueno Matsugaya
Towa City Coop
Sengencho
Royal Park
Omachi
Lexington Square
Haginomachi

90.5

91.6

94.4

97.2

93.0

97.2

97.2

94.4

94.4

97.2

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

92.1

100.0

88.1

100.0

96.0

92.0

96.0

100.0

100.0

96.1

96.1

82.1

94.1

89.9

98.0

91.9

93.9

100.0

98.0

98.0

98.0

98.0

94.5

100.0

88.8

90.5

100.0

100.0

95.1

96.9

94.5

96.2

96.2

100.0

90.0

89.0

87.3

96.7

96.7

94.2

93.5

90.9

91.9

97.7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

94.5

95.6

97.1

98.6

95.0

96.7

97.8

97.8

97.6

96.1

96.5

98.6

100.0

95.4

98.3

98.5

97.1

97.4

98.1

99.3

98.6

94.8

92.5

90.5

92.1

97.5

97.0

98.5

100.0

97.3

96.9

100.0

89.7

93.3

88.8

93.5

98.8

96.4

98.8

98.9

97.8

98.8

95.4

90.0

97.0

91.2

84.2

100.0

97.0

100.0

97.0

94.1

100.0

100.0

89.9

92.8

91.3

96.3

96.4

95.2

92.3

100.0

100.0

98.7

97.6

92.9

94.3

85.8

98.5

97.1

95.7

98.5

98.6

97.1

97.1

95.7

100.0

96.3

96.8

100.0

100.0

100.0

100.0

100.0

96.4

96.4

100.0

90.5

89.1

80.2

83.0

93.1

93.3

93.5

94.9

92.4

90.5

91.1

95.0

90.6

88.1

98.3

98.3

97.7

98.3

98.3

98.3

98.3

96.7

97.4

97.4

100.0

92.4

92.6

95.0

97.4

100.0

89.5

92.2

100.0

100.0

100.0

89.7

78.3

86.3

76.0

73.6

86.3

86.3

100.0

100.0

Lexington Square
Daitabashi
Lexington Square
Honjo Azumabashi
AMS TOWER
Minami 6-Jo

93.7

90.9

85.1

93.0

90.1

88.0

88.0

90.1

95.1

94.4

97.2

100.0

96.9

97.0

91.1

97.0

97.0

97.0

97.0

97.0

97.0

94.1

97.1

91.8

83.7

83.3

94.3

92.9

92.9

91.1

90.4

89.7

87.6

A75

Spacia Ebisu

89.2

90.0

93.6

93.6

95.6

93.9

93.8

94.1

91.9

92.7

91.7

A76

Neo Prominence

96.6

88.9

93.9

94.9

96.6

91.3

98.3

100.0

98.3

96.1

96.2

95.4

94.4

94.0

88.4

94.9

92.1

94.9

96.8

95.9

98.2

98.2

98.7

90.4

86.6

96.2

96.2

95.0

93.9

97.6

95.1

95.3

96.3

A71
A72
A73

A77
A78

Visconti Kakuozan

91.0
100.0

Invoice Shin-Kobe
Residence
Cosmo Court
Motomachi

A79

Revest Honjin

93.7

95.0

92.5

100.0

98.8

96.3

97.5

95.0

96.3

92.5

97.5

A80

Revest Matsubara

98.8

91.2

93.7

89.5

93.1

93.1

94.4

94.3

89.9

90.5

88.7

A81

Sun Terrace
Minami Ikebukuro

97.4

89.5

92.1

97.4

97.4

100.0

97.4

100.0

100.0

100.0

100.0

66

st

Property
No.

A82
A83

Property Name

Alba Noritake
Shinmachi
Revest Meieki
Minamithth

21 Fiscal
PeriodAs ofthe endof Dec.
2013

22nd Fiscal
PeriodAs ofthe endof Jun.
2014

23rd Fiscal
PeriodAs ofthe endof Dec.
2014

96.5

91.7

94.4

98.6

91.0

95.1

93.0

96.5

96.5

95.1

97.2

98.5

93.6

95.4

100.0

100.0

100.0

100.0

98.5

91.4

91.4

96.6
100.0

24 Fiscal
PeriodAs ofthe endof Jun.
2015

25 Fiscal
PeriodAs ofthe endof Dec.
2015th

26 Fiscal Period
As ofthe endof Jan.
2016

As ofthe endof Feb.
2016

As ofthe endof Mar.
2016

As ofthe endof Apr.
2016

As ofthe endof May2016

As ofthe endof Jun.
2016

A84

Revest Heian

98.4

98.4

100.0

92.0

100.0

100.0

100.0

98.4

100.0

100.0

A85

Vendir Hamaotsu
Ekimae

100.0

94.2

87.3

88.4

88.4

87.4

84.7

92.0

97.7

95.3

95.3

A86

Salvo Sala

96.7

91.5

93.5

94.4

98.0

98.5

100.0

100.0

98.3

98.3

100.0

91.2

97.1

88.3

97.1

91.2

88.2

88.2

94.1

97.1

97.1

97.1

98.0

88.1

88.1

94.0

96.0

100.0

98.0

98.0

96.0

98.0

96.0

A87
A88
A89
A90
A91
A92
A93
A94
A95
A96

ExcellenteKagurazaka
Luna Court
Edobori
Winntage Kobe
Motomachi
Queen's Court
Fukuzumi
Corp
Higashinotoin
Belair Oimachi
Siete
Minami-TsukaguchiPrime Life
Sannomiya
Isogami Koen
HERMITAGE
NANBA WEST
Century Park
Shinkawa
1-bankan

86.0

91.1

94.8

94.7

85.9

82.4

89.3

92.9

94.6

87.7

86.0

100.0

100.0

92.5

100.0

95.9

96.6

82.8

96.6

96.6

96.6

93.1

95.1

90.3

92.9

95.7

97.9

97.9

95.4

93.2

90.8

90.8

90.8

96.4

96.1

92.9

96.1

96.4

100.0

100.0

100.0

100.0

100.0

100.0

97.5

92.5

97.5

92.6

95.0

95.0

95.0

100.0

100.0

97.5

97.5

93.8

100.0

96.9

93.8

100.0

100.0

96.9

100.0

100.0

100.0

93.8

96.0

92.0

100.0

95.7

91.2

91.2

82.4

78.4

70.1

78.1

100.0

97.7

100.0

95.5

91.0

91.0

91.0

93.2

95.5

90.9

93.2

95.4

A97

West Avenue

90.0

85.0

85.0

75.0

80.0

80.0

80.0

80.0

85.0

85.0

85.0

A98

Little River
Honmachibashi

96.9

93.9

93.8

96.9

100.0

96.9

100.0

100.0

100.0

100.0

100.0

A99

Prime Life Mikage

96.6

93.4

93.3

86.8

100.0

96.6

96.6

93.4

96.7

96.7

96.7

－

－

－

－

96.6

96.8

97.6

98.9

97.8

98.3

95.7

－

－

－

－

97.6

99.0

97.0

99.0

97.6

95.2

96.8

－

－

－

－

100.0

100.0

100.0

100.0

99.0

99.0

98.0

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

A100
A101
A102
A103
A104
B08
B09
B14
B15
B16
B17
B18
C01
C21

City Court
Kitaichijo
Lieto Court
Mukojima
Lieto Court
Nishi-Ojima
Royal Parks
Momozaka
Royal Parks
Shinden
Kindai Kagakusha
Building
Shinjuku Island
Lexington Plaza
Nishigotanda
Cross Square
NAKANOOhki Aoba
Building
Lexington Plaza
Hachiman
AEON TOWN
Sukagawa
Times
Kanda-Sudacho
4th
Bon Sejour Chitose
Funabashi

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

95.0

100.0

100.0

100.0

98.7

98.7

98.7

90.7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

90.1

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

67.6

64.3

64.3

70.8

79.1

79.1

80.8

82.4

82.4

84.1

84.1

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

83.6

83.6

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

－

－

－

C22

Bon Sejour Yotsugi

100.0

－

－

－

－

－

－

－

－

－

－

C23

Bon Sejour Hino

100.0

－

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C24
C25
C26
C27
D01
D02
D03
D04
D05
D06
D07
D08

Bon SejourMusashi Shinjo
Bon Sejour
KomakiBon Sejour
Hadano Shibusawa
Bon Sejour Itami
Hotel MyStays
Kanda
Hotel MyStays
Asakusa
Hotel MyStays
Kyoto-Shijo
MyStaysShin-Urayasu
Conference Center
Hotel MyStays
MaihamaHotel Vista Premio
DojimaHotel MyStays
Nagoya-Sakae
Hotel MyStays
Sakaisuji-Honmach
i

67

st

Property
No.

D09
D10
D11
D12
D13
D14
D15
D16
D17
D18
D19
D20
D21
D22
D23
D24
D25
D26
D27
D28
D29
D30
D31
D32
D33
D34
D35
D36
D37
D38
D39
D40
D41
D42
D43
D44
D45
D46
D47
D48

Property Name

Hotel MyStays
Yokohama
Hotel MyStays
Nippori
Hotel MyStays
Fukuoka-Tenjin-Mi
nami
Flexstay Inn
Iidabashi
Hotel MyStays
Ueno InarichoFlexstay Inn
ShinagawaFlexstay Inn
Tokiwadai
Flexstay Inn
SugamoHotel MyStays
OtemaeFlexstay Inn
Kiyosumi
ShirakawaFlexstay Inn
Nakanobu P1
Flexstay Inn
Nakanobu P2
APA Hotel
Yokohama-Kannai
Hotel Nets
Hakodate
Flexstay Inn
Shirogane
Hotel MyStays
HanedaHotel MyStays
Kameido P1
Hotel MyStays
Ueno Iriyaguchi
Hotel MyStays
Kameido P2
Hotel Vista
Shimizu
Super Hotel
Shinbashi/
Karasumoriguchi
Flexstay Inn
Higashi-Jujo
Hotel MyStays
Utsunomiya
Flexstay Inn
Kawasaki-Kaizuka
Comfort Hotel
ToyamaFlexstay Inn
Kawasaki-OgawachoFlexstay Inn Ekoda
Super HotelTokyo-JRTachikawa
Kitaguchi
Super Hotel JR
Ueno-iriyaguchi
Hotel MyStays
Shinsaibashi
Comfort Hotel
KurosakiComfort Hotel
MaebashiComfort Hotel
Tsubame-Sanjo
Comfort Hotel
KitamiHotel MyStays
Gotanda Station
Hotel Epinard Nasu
Hotel MyStays
Fukuoka Tenjin
Hotel MyStays
Hamamatsucho
Hotel MyStays
Kanazawa
Takamatsu Tokyu
REI
Hotel
Total

th

th

21 Fiscal
PeriodAs ofthe endof Dec.
2013

22nd Fiscal
PeriodAs ofthe endof Jun.
2014

23rd Fiscal
PeriodAs ofthe endof Dec.
2014

24 Fiscal
PeriodAs ofthe endof Jun.
2015

25 Fiscal
PeriodAs ofthe endof Dec.
2015

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

－

100.0

96.3

95.1

96.1

96.9

98.2

98.2

98.3

98.9

98.4

98.4

98.5

th

26 Fiscal Period
As ofthe endof Jan.
2016

As ofthe endof Feb.
2016

As ofthe endof Mar.
2016

As ofthe endof Apr.
2016

As ofthe endof May2016(Note) “Occupancy Rate” is calculated by dividing the leased area by the leasable area, and rounded to the first decimal place.

68

As of
the endof Jun.
2016