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

Invincible Investment Corporation
Asset Management Report
Fiscal Period ended December 31, 2021 (July 1, 2021 to December 31, 2021)
Content
Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President &CEO of Consonant Investment Management Co., Ltd.
Top Interview
ESG Initiatives
Unitholder Benefit Program
I.
II.
III.
IV.
V.
VI.
VII.

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

Domestic Portfolio Map (As of February 28, 2022)
Financial Conditions

Overview of Unitholders/Investment Units
Information for Unitholders

Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President& CEO of Consonant Investment Management Co., Ltd.
We would like to take this opportunity to express our sincere gratitude to all unitholders of Invincible
Investment Corporation ("INV") for your continued support. Our thoughts and prayers go out to all those
who have contracted the COVID-19 virus as well as their families and friends.
We hereby provide you with a report on INV's asset management and financial results for the 37th fiscal
period (from July 1, 2021 to December 31, 2021) (the "Reporting Period").
In the Reporting Period, due to the rapid increase in new cases from the fifth wave of COVID-19, thegovernment has repeatedly issued and extended the state of emergency and quasi state of emergency
ordinances for various areas in Japan. As a result, the occupancy rate of hotels was sluggish due to selfrestraint for business trips and leisure travel. After a one-year postponement, the Tokyo Olympics andParalympics were finally held, but without spectators at most venues. Consequently, the hotels owned by
INV around the venues in the Tokyo metropolitan area and Sapporo were not able to secure the demand foraccommodations as expected. After the state of emergency was lifted at the end of September, behavioral
restrictions such as travel between prefectures have gradually eased. Business and leisure demand have also
recovered, and hotel occupancy in some months have outperformed the same period in 2020 when the Go To
Travel Campaign was implemented. However, infections from a new variant (Omicron) began to be reported
toward the end of the year, and in January 2022, quasi state of emergency measures were applied in various
places.
Amid this cycle of the spread and temporary containment of COVID-19, INV was again forced to accept
substantial rent reductions from MyStays Hotel Management Co., Ltd., the major tenant and hotel operator.
As for two hotels in the Cayman Islands, the government removed the requirement for fully vaccinatedtourists to self-quarantine after border entry effective November 20, 2021 based on the decision that the local
vaccination rate had increased sufficiently. However, since unvaccinated children still needed to quarantine
for 14 days, it was difficult to attract families to the Cayman Islands. As a result, demand for Thanksgiving
to year-end holidays, which are normally a busy season, had been stagnant.
Although the financial results for the Reporting Period were severe, INV announced a distribution per unitof JPY 166 by recording a gain on sale of property of JPY 2,568 million. Operating revenues were JPY 8,406
million, with operating income of JPY 2,292 million, and net income of JPY 1,014 million, avoiding red ink
for the second consecutive fiscal period.
Our business outlook remains uncertain due to the COVID-19 pandemic. However, we will continue totake initiatives to maximize hotel revenues under the new environment classified as "With Corona". Also on
the improvement of "sustainability" which has been placed a high priority as a focal point for management,
INV is steadily strengthening its action and received a “2-star” rating and “Green Star” award in the 2021
GRESB Real Estate Assessment. We, INV and its asset management company, will make every effort to-1-

manage assets with the aim of achieving a recovery in business performance while contributing to the bestinterests of unitholders.

Your continued support is highly appreciated.
Naoki Fukuda
Executive Director, Invincible Investment Corporation
President & CEO, Consonant Investment Management Co., Ltd.

-2-

Summary of Financial Results
Period from
July 1, 2019 to
December 31, 2019

Period fromJanuary 1, 2020 toJune 30, 2020

Period from
July 1, 2020 to
December 31, 2020

Period fromJanuary 1, 2021 toJune 30, 2021

Period from
July 1, 2021 to
December 31, 2021

Operating Revenues(JPY million)

18,587

9,410

8,340

3,806

8,406

Ordinary Income(JPY million)

11,639424

624-3,5991,014

Net Income(JPY million)

11,638423

623-3,5991,014

Net Assets(JPY million)

259,730

249,538

249,641

245,113

246,130

Total Assets(JPY million)

522,431516,663

516,490

497,899494,819

Net Assets per Unit
(JPY)

42,60140,92940,94640,20340,370Net Assets/Total
Assets (%)

49.7

48.3

48.3

49.2

49.7

Distribution per Unit
(JPY)

1,725

69

167

15

166

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840

Number of Units
Issued (Unit)

Distribution per unit for the 37th fiscal period(the fiscal period ended December 2021)

JPY 166(Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions andestimates as of February 28, 2022. These assumptions and estimates are unavoidably uncertain, and could be affected by various
risks and factors beyond INV’s control. Thus, no guarantee can be made regarding the realization of such future forecasts and targets,and actual results may vary significantly.

-3-Top Interview
Q: Recently, you have sold 13 residential properties. Please tell us what the background was to executein two transactions for 7 properties in December 2021 and 6 properties in January 2022.
A: While ensuring positive financial results earnings for the fiscal period ended December 31, 2021, it wasagain necessary to prepare for the deterioration of hotel performance, so the sale of 13 properties was
carried out in two transactions.
Initially, we started the sale activities with the view of selling 13 properties all at once in the fiscal period
ended December 31, 2021. The fifth wave of COVID-19 rapidly subsided in the autumn, and when thestate of emergency was lifted, the hotel performance headed for a recovery. However, some experts shared
the view that a sixth wave would surely come, so while ensuring positive earnings for the fiscal period
ended December 31, 2021, we also wanted to preserve a part of the sale proceeds in case the performance
deteriorated due to the sixth wave.
Based on the above considerations, we chose to sell 7 properties in December 2021 and 6 properties inJanuary 2022 after negotiating with the buyer. Since the spread of infections during the sixth wave in
2022 has hit the hotel performance again, we believe that the decision was prudent to carry over the saleof 6 properties to the fiscal period ending June 30, 2022.
Q: The credit rating was downgraded in February 2022. Is there any financial problem?
A: As of February 1, 2022, the long-term issuer rating granted by Japan Credit Rating Agency, Ltd. (JCR)
was downgraded by one notch from "A+ (Rating outlook: negative)" to "A (Rating outlook: stable)",however, we do not think there is a major financial problem.
In response to the significant decline in rent income from hotels amid COVID-19, we regard thedowngrade in rating as unavoidable. However, INV has never violated any financial covenants withfinancial institutions since the outbreak of COVID-19. With this background, relations with financial
institutions are favorable. Although some financial institutions, mainly regional banks, have shown
difficulties in refinancing due to changes in lending stances for hotel assets amid COVID-19, we havegood relations with the major banks with large borrowing amounts and we have obtained support asnecessary. So, we believe that we can continue to refinance without problems in the future.
We do not believe that we are free from financial challenges but understand that the LTV (interest-bearing
debts ratio) is a little high. However, as answered in the question above, INV has secured liquidity on
hand by selling 13 residential properties, and as of the end of January 2022, INV has 17.1 billion yen of
cash on hand. In the future, we will consider lowering the LTV by making use of some of these saleproceeds.
Q: Please tell us the status of the hotels in the Cayman Islands.
A: Although there is still a level of uncertainty as of the end of February 2022, we are beginning to see-4-positive aspects that point to a future recovery. In the Cayman Islands, the airport was closed in March
2020 as a quick response to the COVID-19 outbreak, and two hotels owned by INV were temporarilyclosed. Due to the prolonged period of low infection rates on the island and relatively steady progress invaccinations, the Cayman Islands government planned to resume accepting tourists around the summerof 2021, provided that the vaccination rate on the islands reached 80%. However, the government wasforced to postpone the reopening due to an increase of infections in the islands. On November 20, 2021,
the government resumed accepting tourists by removing the quarantine requirement after border entry forfully vaccinated travelers. However, since unvaccinated children (children who are not be able to be
vaccinated) still needed to quarantine for 14 days, it was difficult to attract families to the Cayman Islands,
and demand for the Thanksgiving to year-end holidays, which are normally a busy season, were stagnant.
Since the beginning of 2022, epidemic prevention measures for tourists have been gradually relaxed andunvaccinated children assumed the vaccination status of their adult travel companions, which lowered thehurdle for family travel. On the other hand, all travelers aged 5 and over were required to take lateral flow
tests on days 2, 5, and 7 after border entry, resulting in a 10-day quarantine if positive, resulting in sluggish
demand due to the risk of a delayed return home. Subsequently, these tests were also eliminated in midFebruary. Commercial flights from/to the U.S. by major U.S.-based airlines such as American Airlines
and United Airlines resumed for the first time in almost two years. Therefore, we expect that travel
demand will return to its original state from now on.
Q: INV received a “2-star” GRESB rating in 2021. Please tell us your next target in terms ofsustainability.
A: As for GRESB, we aim to obtain a “3-star” rating in the 2022 ratings, which is up one rank. To achieve
that, we have been working on Green Lease initiatives and to receive a satisfactory survey from ourtenants. We believe that there are many other things that can be done, so we are considering various things
within the company.

-5-

ESG Initiatives
INV recognizes the importance of environmental, social, and governance (ESG) considerations in real estate
investment management from the viewpoint of sustainability such as economic and social development andcontributing to global environmental conservation, and regard improvement of sustainability as an importantmanagement issue and implement initiatives to contribute to make our society sustainable.
Initiatives for Society
Contribution to Regional activation
Hotel MyStays Premier Sapporo Park
"Iwamizawa Fair", a collaboration project with
Iwamizawa City, Hokkaido, is held at the "Farm toTable TERRA" restaurant in the hotel. Focusing on
ingredients from Hokkaido and organic vegetables
procured directly from farms nationwide, thenatural restaurant promotes the charm of the region
by offering lunch, dinner, and wine using abundantspecialties of Iwamizawa City for a limited time andselling special products of the regionLeft) Salad bar of vegetables from Iwamizawa and carefully selected
vegetables from TERRA contract farmers
Right) TERRA original coffee roasted by Iwamizawa's social welfare
corporation "Kupido Fair"

Art Hotel Ishigakijima
The third "Art T-shirt Exhibition" was held. At this exhibition, art works by artists
based in Okinawa and "Art T-shirts" by illustrators and artists inside and outside
the island are exhibited and sold. It provides an opportunity to see art works up
close and contributes to the transmission of the island's art and culture, and has
been well received every year
Cooperation in preventing COVID-19
INV owned hotels (APA Hotel Yokohama-Kannai and MyStays Oita) have been used as an accommodationand medical facility for patients with mild symptoms as well as a quarantine facility for returnees
from abroad (as of February 28, 2022). Also, the conference rooms of MyStays Shin Osaka
Conference Center was provided as a vaccination venue (September and October 2021).
In addition, MyStays Group hotels located in Tokyo participate in "TOKYO Waction", a measure
to promote the vaccination of the new coronavirus in Tokyo, and offer benefits
Disaster measures
Conduct voluntary training twice a year (17 residential properties)
Initiative at Nisshin Palace Stage Daitabashi:
We distribute leaflets to each tenant explaining how to use evacuation equipment sothat residents don’t panic in an emergency. An awareness poster issued by the fire
department is posted in the common area during Disaster Prevention Week

-6-

GRESB Real Estate Assessment1
In the 2021 GRESB Real Estate Assessment, INV received a “2-Star” GRESB
Rating, which is based on overall GRESB scores and its quintile position among
participants. INV was also awarded a “Green Star” designation by achieving
high performance in both the “Management Component” that evaluates policies
and organizational structure for ESG (Environmental, Social, and Governance)
promotion, and the “Performance Component” that assesses environmental
performance and tenant engagement of properties owned. Further, INV washighly evaluated for its ESG information disclosure efforts and received an “A
Level” the highest level for GRESB Public Disclosure, which assesses thebreadth of ESG disclosure(Note 1) GRESB is an annual benchmarking program to evaluate ESG considerations of property
companies and real estate funds. The GRESB Real Estate Assessment is distinguished by its
comprehensive evaluation of initiatives for sustainability of property companies, REITs and real estate
funds, not of individual properties. GRESB rating is a relative evaluation based on comprehensivescores and the highest being "5-stars".

-7-

Unitholder Benefit Program
INV has introduced the unitholder benefit program to improve the satisfaction of its unitholders and expand
the unitholder base. Eligible unitholders can stay at Sheraton Grande Tokyo Bay Hotel and all MyStays
hotels at special discount rates.
*Detailed information is sent to eligible unitholders along with this report.

Overview of the Unitholder Benefit Program(Note 1)◼ Sheraton Grande Tokyo Bay Hotel
Applicable Hotels◼ All MyStays hotels(Note 2)
All Unitholders whose names are recorded on Invincible’s Unitholders’ Registry
as of the relevant record dates:
Eligible Unitholders *INV decided to remove the eligibility requirement of "holding 10 or moreunits" to enable all INV unitholders to utilize the Unitholder Benefit
Program from the June 2020 Fiscal Period and onwards.
Record Date

The last day of every fiscal period (June 30 and December 31 of each year)

Program Details

Stay with unitholder special discount rates at the above applicable hotels

Hotel Reservation

Available Period(Note 3)

◼Sheraton Grande Tokyo Bay Hotel
Reservation via phone or Email◼ All MyStays hotels
Reservation via designated website posting accommodation plans for theunitholder benefit program
From April 1 to September 30 (eligible unitholders as of December 31)
From October 1 to March 31 (eligible unitholders as of June 30)

Sheraton Grande Tokyo Bay Hotel

Hotel Epinard Nasu

Fusaki Beach Resort Hotel & Villas(Note 1)

Hotel MyStays Premier Akasaka

The details of the unitholder benefit program described above are as planned by Invincible as of February 28, 2022, and the program may be changed orabolished even after it is has been introduced.

-8-

(Note 2)(Note 3)

Refers to all hotels under MyStays brand managed by MHM, and hotels shown on the MyStays Hotel Group’s official website (https://www.mystays.com/enus/) will be applicable.
Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, youactually need to lodge during the availability period.

-9-

- 10 -

I.

Asset Management Report

Overview of Asset Management
1

Trends in Investment Corporation’s Operating Results
By Period

Reporting period

33rd

34th

35th

36th

37th

fiscal period

fiscal period

fiscal period

fiscal period

fiscal period

Jul. 1, 2019 toJan. 1, 2020 toJul. 1, 2020 toJan. 1, 2021 toJul. 1, 2021 to

Dec. 31, 2019

Jun. 30, 2020

Dec. 31, 2020

Jun. 30, 2021

Dec. 31, 2021

Operating Results

Operating revenue(JPY thousand)

18,587,253

9,410,225

8,340,593

3,806,176

8,406,334(Rental revenue – real estate)(JPY thousand)

14,545,826

5,838,836

5,738,249

3,806,176

5,837,847

Operating expenses(JPY thousand)

5,728,269

7,913,247

6,649,749

6,147,595

6,113,994(Property-related expenses)(JPY thousand)

4,673,007

6,801,584

5,044,533

4,720,815

4,777,042

Operating income (loss)(JPY thousand)

12,858,984

1,496,977

1,690,843(2,341,419)

2,292,339

Ordinary income (loss)(JPY thousand)

11,639,553

424,522624,333(3,599,083)

1,014,799

Net income (loss)(JPY thousand)

11,638,948

423,917623,728(3,599,688)

1,014,194(a) (JPY thousand)

522,431,999

516,663,418

516,490,350

497,899,915

494,819,805

(%)

11.6

(1.1)

(0.0)

(3.6)

(0.6)

(JPY thousand)

259,174,000

263,468,000

262,588,000

249,198,000

244,945,000(b) (JPY thousand)

259,730,758

249,538,194

249,641,218

245,113,891

246,130,354

(%)

11.5

(3.9)

0.0

(1.8)

0.4

Unitholders’ capital(JPY thousand)

235,701,512

235,701,512

235,701,512

235,701,512

235,701,512

Total distributions(c) (JPY thousand)

10,517,049

420,6811,018,172

91,452

1,012,075(Note 1) (%)

90.4

99.2

163.2

-

99.8

(d) (Units)

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840(b) / (d) (Note 2) (JPY)

42,60140,92940,94640,20340,370(c) / (d) (JPY)

Total assets(change from last period)

AssetsInterest-bearing debt
Net assets(change from last period)

Dividend
StatusDividend payout ratio
Number of investment units

Information per Unit

issued and outstanding
Net assets per unit

167

15

166

(JPY)

1,725
1,725

69

(Distributions of earnings per unit)

69

167

15

166

(Distributions in excess of retained

(JPY)

-

-

-

-

-

2.4

0.1

0.1

(0.7)

0.2

4.7

0.2

0.2

(1.4)

0.4

4.7

0.2

0.2

(1.5)

0.4

9.4

0.3

0.5

(2.9)

0.8

49.7
(0.1)

48.3
(1.4)

48.3
0.0

49.2
0.9

49.7

(%)
(Note 3) (JPY thousand)

14,490,677

3,392,004

3,703,215

2,090,413

4,201,550

Distributions per unit

earnings per unit)
Return on assets(annualized)

Financial Measures

Return on equity(annualized)
Capital ratio(change from last period)(Note 3) (%)(Note 3) (%)(b) / (a) (Note 3) (%)

NOI(Net Operating Income)

0.5(Note 1) Dividend payout ratio is calculated in accordance with the following formula and rounded to one decimal place:
Dividend payout ratio = Distribution amount (Excluding distributions in excess of retained earnings) ÷ Net income × 100(Note 2) Net assets per unit are rounded to the nearest unit.

- 11 -

(Note 3) Figures above are calculated as below, and ratios are rounded to one decimal place. Figures annualized according
to the number of days are also shown.
Return on assets = Ordinary income for relevant period / ((Total assets at start of relevant period + Total assets at endof relevant period) / 2) x 100.
Return on equity = Net income for relevant period / ((Net assets at start of relevant period + Net assets at end of
relevant period) / 2) x 100.
Capital ratio = Net assets at end of relevant period / Total assets at end of relevant period x 100.
NOI = Rental revenue – Property-related expenses + Management contract revenue - Management contract expenses+ Depreciation expense for relevant period- 12 -

2

Overview of Asset Management for the Fiscal Period Ended December 2021(a)

Main Trends of INV

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

US Eastern Standard Time
As of July 2011, Calliope owned 97.35% of issued shares of CIM and the investment ratio reached 100% in
October 2013. Calliope transferred 80.0% of issued shares to Fortress CIM Holdings L.P., a subsidiary of
SoftBank Group and 20.0% to SoftBank Group on March 29, 2018. As of the date of this document,
SoftBank Group owns 100% of issued shares of CIM directly and indirectly.

- 13 -

(Note 3)

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

Operational Environment and Performance

Given the enormous impact of COVID-19 on the economy as a whole, especially in the hotel sector, on September 10,
2021 and December 8, 2021, INV entered into Memorandum of Understandings (collectively the “MOU”) to amend each
fixed-term building lease and property management agreement ("MLPM Agreements") pertaining to the rent conditions
for the periods from July 1, 2021 to September 30, 2021 and from October 1, 2021 to December 31, 2021 for domestic
hotels owned by INV and operated by INV's main tenant, MyStays Hotel Management Co., Ltd. (“MHM”) and its
affiliates (collectively the “MHM Group” along with MHM). Pursuant to the MOU, we have changed the rent payment
conditions of MLPM Agreements in terms of the amount of fixed rent payment, the variable rent calculation method,
payment method of rent and payment date.
For the December 2021 fiscal period, the portfolio NOI (Note 1) increased by 13.5% or JPY 498 million compared to thesame period in the previous year (the December 2020 fiscal period) to JPY 4,201 million. The hotel portfolio NOI
increased by JPY 872 million. The residential and retail portfolio NOI decreased by JPY 373 million due to asset sales.
Compared to the December 2019 fiscal period prior to the COVID-19 pandemic, the portfolio NOI decreased by 72.3%
or JPY 10,962 million, of which the hotel portfolio NOI decreased by JPY 10,390 million and the residential and retail
portfolio NOI decreased by JPY 571 million due to asset sales.
Commentary on hotel and residential performance in the Reporting Period is as described below.
The NOI for the Reporting Period of the 75 domestic hotels (Note 2) owned by INV increased by 40.0% compared to the- 14 -

same period in the previous year (figures exclude nine domestic hotels with fixed-rent lease agreements among the 84
domestic hotels owned by INV as of the end of the Reporting Period, including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of the preferred equity interest of TMK owned by INV). The 75 domestic hotels recorded an occupancy
rate (Note 3) of 52.4% (+4.1 points YoY), ADR (Note 4) of JPY 7,667 (-8.5% YoY), and RevPAR (Note 5) of JPY 4,020(-0.7% YoY). Compared to the December 2019 fiscal period prior to the COVID-19 pandemic, the NOI decreased by
76.7%, the occupancy rate decreased by 35.9pt, ADR decreased by 27.8%, and RevPAR decreased by 57.1%.
Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort recorded an average occupancy rateof 14.9% (+10.4 points YoY), ADR of USD 193 (+11.3% YoY), and RevPAR of USD 29 (+270.8% YoY) for theReporting Period. Compared to December 2019 fiscal period prior to the COVID-19 pandemic, the occupancy rate
decreased by 57.4pt, ADR decreased by 41.1%, and RevPAR decreased by 87.9%.
Regarding the hotel sector in Japan, domestic hotel demand has significantly declined compared to pre-COVID-19
pandemic levels due to a sharp reduction in inbound visitors and self-restraint in business trips and leisure travel under
the State of Emergency and other measures. Under such circumstances, high occupancy rates were recorded, centeringon the hotels that were able to capture group accommodation and business demand, as well as leisure demand derived
from an increase in various events in the market and municipalities’ local travel subsidy programs, which helped several
hotels achieve occupancy rates over 90% in some months. Since most of the Tokyo Olympics Games were held without
spectators, the knock-on effect on the accommodation demand was limited for many hotels owned by INV in the Tokyo
metropolitan area and Hokkaido.
As for the Cayman Hotels, commercial flights to/from the US and UK resumed on a limited basis and the requirement
for fully vaccinated tourists to self-quarantine after border entry was lifted in November 2021. However, hotel demand
did not recover in earnest because of the continuation of the 14-day self-isolation requirement for children who are notfully vaccinated, and the travel health notice from the US’ CDC, which listed the Cayman Islands as level 4, the highest
COVID-19 risk category. After that, epidemic prevention measures for tourists have been gradually relaxed in the
Cayman Islands, and the aforementioned quarantine measures for unvaccinated children have been relaxed as of the dateof this document. Furthermore, the rapid lateral flow COVID-19 tests that were required multiple times after border
entry were lifted, and major US airlines resumed operations to the Cayman Islands. The hotel demand is expected tostart recovering in due course.
Regarding the residential portfolio, the occupancy rate (Note 6) of 54 residential properties (Note 7) decreased by 1.3
points from 95.4% at the end of the previous fiscal period to 94.1% at the end of the Reporting Period. The averageoccupancy rate (Note 6) increased by 0.1 points YoY to 94.7%. The NOI (Note 8) for the Reporting Period decreasedby 2.4% YoY, mainly due to the sale of seven residential properties executed on December 22, 2021. The NOI (Note 8)
for the 47 residential properties excluding the seven properties sold in December 2021 decreased by 0.9% year-over-year
on a cumulative basis for the Reporting Period.
In the Reporting Period, INV realized a rent increase for 31.5% (based on the number of contracts) of the new residential
lease contracts, however the new rent decreased by 1.5% compared to the previous rent across all new leases (Note 9).
INV achieved a rent increase for 33.5% (based on the number of contracts) of contract renewals with an average rent
increase of 1.4% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate
(Note 10) of 79.6%, a decrease of 4.5 points YoY. Combined, new lease and renewal lease rents were signed at 0.3%
higher than the previous leases. The average rent per tsubo per month (Note 11) for the Reporting Period decreased by
1.0% YoY to JPY 9,004.
The total appraisal value of 133 properties was JPY 523,699 million (1 out of the 134 properties owned by INV at theend of the Reporting Period is excluded from the appraisal calculation: Sheraton Grande Tokyo Bay Hotel (preferred
equity interest) for which the appraisal value of such interest is not available). The portfolio has an unrealized gain of
JPY 71,895 million (Note 12) and an unrealized gain ratio of 15.9% (Note 12). The total appraisal value of 133
properties which were owned throughout the Reporting Period increased by 0.2% from JPY 522,888 million at the endof the June 2021 fiscal period to JPY 523,699 million at the end of the Reporting Period.

- 15 -

Key Performance Indicators of 75 Domestic Hotel Properties (Note 2)
December 2021 fiscal periodvs 2H 2020

vs 2H 2019

Occupancy Rate (Note 3)

52.4%+4.1pt-35.9pt

ADR (JPY) (Note 4)

7,667

-8.5%

-27.8%

RevPAR (JPY) (Note 5)

4,020

-0.7%

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

3,315

-0.9%

-74.3%Key Performance Indicators of Cayman Hotels
December 2021 fiscal period
Occupancy Rate (Note 3)

14.9%

vs 2H 2020

vs 2H 2019+10.4pt-57.4pt

ADR (USD) (Note 4)

193+11.3%-41.1%

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

Key Performance Indicators of 54 Residential Properties (Note 7)
December 2021 fiscal period
Occupancy Rate (Note 6)
Average Rent per Tsubo per Month(JPY) (Note 11)
NOI (JPY million) (Note 8)(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)Year-on-year change

94.7%+0.1pt

9,004

-1.0%

1,338

-2.4%

“NOI” for the hotel properties is calculated in accordance with the following formula:
NOI＝ Rental Revenues ‐ Property Related Expenses + Depreciation Expenses + Dividend on the preferred
equity interest (TMK dividend) + (Management Contract Revenue of the Cayman Hotels ‐Management
Contract Expense)
Of the 84 hotels held as of the end of the December 2021 Fiscal Period (including the Sheraton Grande Tokyo
Bay Hotel, the underlying asset of the preferred equity interest of TMK owned by INV), the following nine
hotels with fixed-rent lease agreements are excluded: Super Hotel Shinbashi/Karasumoriguchi, Comfort Hotel
Toyama, Super Hotel Tokyo-JR Tachikawa Kitaguchi, Super Hotel JR Ueno-iriyaguchi, Comfort Hotel
Kurosaki, Comfort Hotel Maebashi, Comfort Hotel Tsubame-Sanjo, Comfort Hotel Kitami and Takamatsu
Tokyu REI Hotel. In addition, the figures for the properties acquired after January 2019 are calculated on theassumption INV had acquired those properties on January 1, 2019, using the actual figures provided by thesellers of such properties for the period before the acquisition. Hereinafter the same shall apply.
“Occupancy rate” for the hotel properties is calculated in accordance with the following formula:
Occupancy rate = total number of occupied rooms during a certain period ÷ total number of rooms available
during the same period (number of rooms x number of days)
Hereinafter the same shall apply.
“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.
Hereinafter the same shall apply.
“RevPAR” means revenues 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. Hereinafter the same shall apply.
“Occupancy Rate” and “Average Occupancy Rate” for the portfolio or the residential properties are calculatedby dividing the sum of total leased area by the sum of total leasable area at the end of each month during the- 16 -

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

Overview of Fund Raising

As a result of the measures described below, INV’s interest-bearing debt outstanding balance was JPY 244,945 million andthe Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 49.5% and 45.4% respectively, asof the end of the Reporting Period, with an average interest rate (Note 3) of 0.49%.

(Note 1)

(Note 2)(*)

Interest-Bearing Debt ratio uses the calculation formula below:
Interest-Bearing Debt ratio = total outstanding interest-bearing debt (excluding short-term consumption tax
loans)/total assets x 100
LTV (appraisal value basis) uses the calculation formula below:
LTV = total outstanding interest-bearing debt (excluding short-term consumption tax loans)/total appraisal
value (*) x 100
Since appraisal value for Sheraton Grande Tokyo Bay Hotel (preferred equity interest) is not available, theacquisition price of the preferred equity interest (JPY 17,845 million) is deemed as appraisal value of Sheraton- 17 -

(Note 3)

Grande Tokyo Bay Hotel (preferred equity interest). The appraisal value of the Cayman Hotels is converted
into JPY amount via exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward contracts
concluded on July 26, 2018 and executed on September 26, 2018.
The average interest rate (annual rate) is calculated by the weighted average based on the outstanding balanceof borrowings and rounded to two decimal places.

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

Overview of Sale of Assets

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

Property Name
Lexington Plaza
HachimanAcquisition
Price(JPY million)

Book Value
Sale Price(JPY million) (JPY million)(Note 1)
(Note 2)3280

(Note 1)
(Note 2)

2,982

3,660

Gain on Sale
(JPY million)(Note 3)

Transferee(Note 4)590

KubotaHoldings

Book value shows a figure as of the date of sale.
Sale price shows a figure set forth in the purchase and sale agreement for the trust beneficiary interests, anddo not include adjustments for property taxes, city planning taxes, or national or local consumption taxes.
(Note 3) Gain on sale is calculated by deducting the book value and the transfer related cost from the sale price.
(Note 4) INV does not have any capital, personnel or transactional relationship of note with the transferee. In addition,
the transferee is not related parties of INV/CIM. Furthermore, related persons and affiliates of the transferee- 18 -

(Note 5)

are not related parties of INV/CIM. Moreover, the transferee is not interested party, etc. of INV/CIM as
provided in Investment Trust Act.
Amounts are rounded down to the nearest million yen.

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

Property Name

Acquisition
Price(JPY million)

A77

Invoice Shin-Kobe
Residence

1,260

1,097

A78

Cosmo Court
Motomachi

973

833

A85

Vendir Hamaotsu
Ekimae

581

478

A86

Salvo Sala

544

468

A89

Winntage Kobe
Motomachi

512

435

A91

Corp Higashinotoin

446

390

A95

HERMITAGE
NANBA WEST

355

310

A79

Revest Honjin

674

569

A80

Revest Matsubara

657

559

A82

Alba Noritake
Shinmachi

608

509

A83

Revest Meieki
Minami

597

498

A88

Luna Court Edobori

525

457

A98

Little River
Honmachibashi

310

272

8,042

6,881

Property
Number

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

6,150

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

Transferee(Note 5)

1,977

Kansai
Residence
Tokutei
Mokuteki
Kaisha

4,450

1,454

10,6003,432-Book value shows figures as of the date of sale for the seven properties sold on December 22, 2021 and as ofDecember 31, 2021 for the six properties sold on January 12, 2022.
Sale prices of individual properties are not disclosed as the transferee’s consent has not been obtained fordisclosure. Accordingly, the gains on sales of individual properties are not disclosed, either.
Sale prices show the total sale prices set forth in the purchase and sale agreement for the trust beneficiary- 19 -

interests, and do not include adjustments for property taxes, city planning taxes, or national or local
consumption taxes.
(Note 4) Gain on sale is calculated by deducting the book value and the transfer related cost (estimated transfer related
cost for the six properties sold on January 12, 2022) from the sale price.
(Note 5) INV does not have any capital, personnel or transactional relationship of note with the transferee. In addition,
the transferee is not related parties of INV/CIM. Furthermore, related persons and affiliates of the transferee
are not related parties of INV/CIM. Moreover, the transferee is not interested party, etc. of INV/CIM as
provided in Investment Trust Act.
(Note 6) Amounts are rounded down to the nearest million yen.
(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 4,600
million from the previous period (+120.9%) to JPY 8,406 million, resulting in a net income of JPY 1,014 million,
an increase of JPY 4,613 million from the previous period. Unappropriated retained earnings including theretained earnings carried forward from the preceding fiscal period (JPY 8,662 million) is JPY 9,676 million. INV
has decided to set distribution per unit (excluding excess profit distribution) of JPY 166 without reversing retained
earnings.

- 20 -

3

Changes in Total Number of Investment Units Issued and Outstanding

Changes in the number of investment units issued and outstanding and unitholders’ capital for the past five years up to the endof the Reporting Period are as follows.

Date

Type of issue

Total number of investment
units issued and outstanding(units) (units)
Increase
Total

Unitholders’ capital (JPY)
Increase

Reference

Total

February 22, 2017

Reversal of
allowance fortemporarydifferences
adjustment-

3,675,824

224,225,264

120,591,496,700(Note 1)March 13, 2017

Public offering

185,000

3,860,824

8,393,450,000

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

Public offering

887,959

4,748,783

37,917,625,218

166,902,571,918(Note 3)

November 1, 2017

Third-party
allotment

44,3984,793,181

1,895,883,396

168,798,455,314(Note 4)

August 1, 2018

Public offering

909,524

5,702,705

40,280,089,388

209,078,544,702(Note 5)

August 21, 2018

Third-party
allotment

45,476

5,748,181

2,013,995,612

211,092,540,314(Note 6)

December 28, 2018

Retirement(81,341)

5,666,840-

211,092,540,314(Note 7)

July 18, 2019

Public offering

409,524

6,076,364

23,317,887,036

234,410,427,350(Note 8)

Third-party
20,476
6,096,840
1,165,882,964
235,576,310,314 (Note 9)
allotment
Reversal of
allowance for
6,096,840
125,201,855
235,701,512,169 (Note 10)
August 22, 2019
temporarydifferences
adjustment(Note 1) INV decided at the Board of Directors' Meeting held on February 22, 2017, the reversal of allowance fortemporary difference adjustments for incorporation into unitholders' capital.
(Note 2) New investment units were issued in a public offering at a price of JPY 46,897 per unit (JPY 45,370 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 3) New investment units were issued in a public offering at a price of JPY 44,118 per unit (JPY 42,702 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 4) New investment units were issued in a third-party allotment at a price of JPY 42,702 per unit for the purposeof allocation to cash reserves to be used as part of the funds for future acquisition of specified assets.
(Note 5) New investment units were issued in a public offering at a price of JPY 45,776 per unit (JPY 44,287 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 6) New investment units were issued in a third-party allotment at a price of JPY 44,287 per unit for the purposeof raising a part of the funds for the acquisition of new properties.
(Note 7) INV acquired own investment units from December 13, 2018 to December 18, 2018 (on a trade date basis)through the market purchase at Tokyo Stock Exchange based on a discretionary transaction contract with asecurities company.
INV resolved the retirement of all the acquired own investment units at the Board of Directors' Meeting held
on December 25, 2018 and the acquired own investment units were retired on December 28, 2018.
The acquisition of own investment units was conducted using capital surplus, and thus there is no change tounitholders’ capital.
(Note 8) New investment units were issued in a public offering at a price of JPY 58,898 per unit (JPY 56,939 after
August 15, 2019- 21 -

deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
New investment units were issued in a third-party allotment at a price of JPY 56,939 per unit for the purposeof raising a part of the funds for the acquisition of specified properties.
(Note 10) INV decided at the Board of Directors' Meeting held on August 22, 2019, the reversal of allowance fortemporary difference adjustments for incorporation into unitholders' capital.
(Note 9)Trends in Trading Prices of Investment Securities
The highest and lowest prices (trading prices) in the Real Estate Investment and Trust Securities Section of the Tokyo Securities
Exchange on which the investment securities of INV are listed are as follows.
Real Estate Investment and Trust Securities Section, Tokyo Securities Exchange(Unit: JPY)
PeriodClosing month
HighestLowest33rd fiscal
periodDecember
2019
70,60055,70034th fiscal
periodJune
2020
62,30018,87035th fiscal
periodDecember2020
39,80023,500- 22 -

36th fiscal
periodJune
2021
47,65031,40037th fiscal
periodDecember
2021
45,80034,4504Distribution PerformanceWith respect to distributions of earnings for the Reporting Period, INV decided that distribution per unit (excluding excess
profit distribution) is JPY 166 without reversing retained earnings.

PeriodCalculated Period
Unappropriatedretained earnings(JPY thousand)Reserved profit(JPY thousand)Total cash distribution(JPY thousand)(Distribution per unit)(JPY)
Total profit distribution(JPY thousand)(Profit distribution per
unit)
(JPY)
Total refund ofinvestment(JPY thousand)(Refund of investment
per unit)(JPY)
Total distribution fromthe allowance fortemporary differences
adjustment out of total
refund of investment(JPY thousand)(Distribution from theallowance fortemporary differences
adjustment per unit outof refund of investment
per unit) (JPY)
Total distribution fromunitholders’ equity
under the tax laws outof the total refund ofinvestment(JPY thousand)Distribution fromunitholders’ equity
under the tax laws outof refund of investment
per unit(JPY)

33rd fiscal
periodJul. 1, 2019 toDec. 31, 201934th fiscal
periodJan. 1, 2020 toJun. 30, 2020

35th fiscal
periodJul. 1, 2020 toDec. 31, 2020

36th fiscal
periodJan. 1, 2021 toJun. 30, 2021

37th fiscal
periodJul. 1, 2021 to
Dec. 31, 2021

23,261,426

13,168,294

13,371,340

8,753,480

9,676,221

12,744,377

12,747,612

12,353,168

8,662,027

8,664,146

10,517,049

420,6811,018,172

91,452

1,012,075

1,725

69

167

15

166

10,517,049

420,6811,018,172

91,452

1,012,075

1,725

69

167

15

166

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- 23 -

5

Future operational policy and issues to be addressed
Outlook for the Fiscal Periods Ending June 30, 2022
The Japanese economy is expected to remain in a severe situation caused by a new COVID-19 variant (Omicron variant),
and it is necessary to closely monitor impacts of the pandemic in Japan and overseas, variables in the financial and capital
markets, and other factors. However, the progress in vaccine booster shots and popularization of a newly approved oral
drug will hopefully reduce the number of patients with severe symptoms and death toll, and lead to an improvement in
the Japanese economy toward the second half of 2022.
In the hotel market, it is expected that inbound demand will not recover for the time being, but domestic tourism andbusiness demand are expected to gradually recover as infectious disease prevention is strengthened along with theenhancement of the medical system and the level of socio-economic activity rises.
In the rental housing market, lifestyle changes due to the impact of COVID-19 infections are expected to affect tenant
trends, and INV will keep an eye on such trends.
(a)Future operational policy and issues to be addressed

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

Further internal growth at residential properties

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

External growth strategy
New Property Acquisitions

As its basic strategy, INV had moved forward with the acquisition of new properties focusing on hotels, where continued
growth in portfolio revenues would be anticipated and residential properties, especially where rental growth could beachieved, to build a portfolio with a good balance between growth and stability. However, for the time being, it isnecessary to carefully consider the acquisition of hotel properties, which have been greatly affected by the sluggish
demand for accommodation due to COVID-19, while looking for the possibility of acquiring property at an attractive
price.
In regard to hotels, INV will take into consideration demands of business and leisure customers in nearby areas, andleasing contract types when making investment decisions, with the aim of acquiring properties where growth and stabilityof GOP and rental revenue are forecasted to increase.
In regard to residential properties, INV will analyze occupancy rates, rental market trends, the presence of competing
properties among other factors, and consider acquiring properties with strong competitiveness, in which it believes it canachieve increases in rent.

- 24 -

Property Sales
INV considers the possibility of portfolio optimization upon consideration of the portfolio sector composition, geographic
distribution and competitiveness of each property as appropriate in the sluggish accommodation demand due to the impact
of COVID-19.
(ii)

Strategy for internal growth(Hotels)

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

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

Before Change
A+(Negative)

After ChangeA(Stable)Bond RatingA+A

As it is difficult to predict when the COVID-19 pandemic will come to an end, for the time being INV will implement- 25 -

initiatives that restrict an increase in interest payments upon refinancing of existing borrowings and ensure refinancing.
Over the medium to long term, INV will implement financial strategies such as reduction of borrowing costs, extensionof average interest-bearing debt repayment periods, diversification of loan maturity dates and financing measures.
(iv) Compliance risk management
While the executive director of INV concurrently serves as the representative director at CIM, two supervisory directors(an attorney and a certified public account) oversee the execution of the executive director’s duties via the Board of
Directors of INV.
CIM has a compliance officer who is responsible for compliance with laws, regulations and other relevant matters as well
as overall management of transactions with sponsor related parties. Moreover, it has in place a compliance committee
which, chaired by such compliance officer, is in charge of deliberating on compliance with laws, regulations and otherrelevant matters as well as transactions with sponsor related parties. Compliance committee meetings are attended byan 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. No resolution will be adopted unless the outside expert agrees.
When INV conducts certain transactions such as asset acquisition with sponsor related parties, prior approvals by the
Board of Directors of INV are required to ensure an objectivity in deliberation regarding conflicts of interests. In suchagenda, only two supervisory directors (a lawyer and a certified public accountant) will participate in the vote, and theexecutive director who concurrently serves as the representative director of CIM will not participate in the vote as he isa special interested party.
INV intends to continually take steps to strengthen its compliance structure.
(v)

Initiatives for Sustainability

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

- 26 -

6

Significant Subsequent Events(a)

Overview of Sale of Assets

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

Property Name

A79

Revest Honjin

674

569

A80

RevestMatsubara

657

559

A82

Alba Noritake
Shinmachi

608

509

A83

Revest Meieki
Minami

597

498

A88

Luna Court
Edobori

525

457

A98

Little River
Honmachibashi

310

272

3,371

2,867

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

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

Transferee(Note 5)

4,450

1,454

Kansai
Residence
Tokutei
Mokuteki
Kaisha

4,450

1,454

-

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

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

(Reference Information)(a)Debt Financing

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

- 27 -

(i)Term Loan (001)
Lender

MUFG Bank, Ltd.

Borrowing
Date

Outstanding
Balance(JPY million)
1,700

January 24, 2022

Interest Rate(annual rate)
Floating
interest rates(Note 1)

(Note 1)(ii)

Maturity
Date

Borrowing
MethodJanuary 24,
2023

Unsecured/ nonguarantee

Maturity
Date

Borrowing
MethodJanuary 24,
2023

Unsecured/ nonguarantee

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

Term Loan (002)
LenderBorrowing
Date

Outstanding
Balance(JPY million)

Sumitomo Mitsui Trust Bank,
January 24, 2022
Limited(Note 1)6,800

Interest Rate(annual rate)
Floating
interest rates(Note 1)

1-month JPY TIBOR (Base Rate) + spread (0.25000%)- 28 -

Overview of the Investment Corporation
1

Overview of Investment
By Period
Results Dates

33rd fiscal
periodAs of Dec. 31,
201934th fiscal
periodAs of Jun. 30,
202035th fiscal
periodAs of Dec. 31,
2020

36th fiscal
periodAs of Jun. 30,
2021

37th fiscal
periodAs of Dec. 31,
2021

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840

235,701

235,701

235,701

235,701

235,701

34,62642,43938,07433,747

31,238

Number of issuable
investment units(Unit)
Number ofinvestment units
issued andoutstanding(Unit)
Unitholders’ capital(JPY million)
Number of total
unitholders
2

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

Name

Number of units held

The Master Trust Bank of Japan, Ltd.
(trust account)
Custody BANK of Japan, Ltd. (trust
account)
The Nomura Trust and Banking Co., Ltd.
(investment trust account)
STICHTING PENSIOENFONDS ZORGEN WELZIJN
Custody BANK of Japan, Ltd. (security
investment trust account)
DEUTSCHE BANK AG, SINGAPORE
A/C CLIENTS (TREATY)
THE BANK OF NEW YORK MELLON
140044SSBTC CLIENT OMNIBUS ACCOUNTFJODF GP INV HOLDINGS LLC
STATE STREET BANK WEST CLIENT- TREATY 505234
Total(Note)

Percentages are rounded down to two decimal places.

- 29 -% of total number of investment
units issued and outstanding

1,141,747

18.72

653,25410.71

284,686

4.66

278,484

4.56

224,473

3.68

194,900

3.19

157,489

2.58

149,580

2.45

115,931

1.90

94,225

1.54

3,294,769

54.04

3

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

Position

Executive Director

Name

Naoki Fukuda

Yoshihiro Tamura

Supervisory Director
Hiroyuki Fujimoto

Auditor(Note)

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

Ernst & Young
ShinNihon LLC-

Directors’ remunerationfor operating period(JPY thousand)
-

2,400

2,400

17,700Executive and supervisory directors do not hold INV’s units either in their names or in the names of third
parties. In addition, while they may be directors of organizations not listed above, those organizations aswell as those listed above have no conflicts of interest with INV.

Determination policy for dismissal or non-reappointment of Auditor
The auditing agreement with the auditor is renewed every accounting period. Dismissals are made in accordance with theInvestment Trust Act, and in addition, non-reappointments are considered by the board of directors of INV by comprehensively
taking into account the auditing quality, auditor remuneration, and other various circumstances.

Notes regarding indemnification agreement between Directors and INV
Not applicable.

- 30 -

4

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

Insured Person

Overview of the Insurance Contract(Outline of insured event covered by insurance)
Damages and dispute costs incurred by the insured due to a claim
for damages caused by the insured's actions as a director's duties
will be covered.

All Executive Directors andSupervisory Directors(Burden ratio of insurance premium)
INV bears the insurance premiums except those for the special
contract of unitholder derivative suits.
(Measures to ensure that duties are executed properly)
By excluding criminal acts such as bribery and damages of
directors who intentionally commit illegal acts fromcompensation, measures are taken so that duties of directors are
executed properly.

5

Asset Management Company, Asset Custody Companies, and General Administrative AgentsThe asset management company, asset custody companies, and general administrative agents at the end of the Reporting
Period are as below.

Delegation category
Asset management company
Asset custody company
General administrative agent administration ofunitholders’ registry, etc.)
General administrative agent(institutional operations (Note 1))
General administrative agent(accounting operations, etc.)
Special account management company

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

General administrative agent(Fiscal agent pertaining to investment corporation
bonds, etc.)(Note 1)

(Note 2)

(Note 3)

Mitsubishi UFJ Trust and Banking Corporation
Limited (Note 2) / Sumitomo Mitsui Trust
Bank, Limited (Note 3)
Mizuho Bank, Ltd. / Sumitomo Mitsui
Banking Corporation(i) Tasks related to the running of general unitholders’ meetings for INV (excluding tasks related to the mailingof general unitholders’ meetings and the receipt and counting of voting forms), (ii) tasks related to the runningof the meetings of the Board of Directors of INV, and (iii) or tasks incidental or related to that mentioned in(i) or (ii) are delegated.
Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings accountregisters for special accounts of unitholders of the INV before the merger (former Tokyo Growth REIT
Investment Inc.) as well as tasks related to other transfer savings account registers.
Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings accountregisters for special accounts of unitholders of the former LCP as well as tasks related to other transfer savings
account registers.

- 31 -

Status of Investment Corporation’s Assets under Management
1

Composition of INV’s Assets

Type ofasset

Geographic area

PurposeReal
estateHotels(Note 1)
Greater Tokyo
Area (Note 3)
Major regional
citiesOverseas (Note 4)
Subtotal

Fiscal period ended June 30, 2021
(as of June 30, 2021)
Amount held
(JPY million)(Note 2)

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

Percentage of
total assets(%)

Amount held
(JPY million)(Note 2)

Percentage of
total assets
(%)

2

0.0

1

0.0

-

-

-

-

34,7127.0

34,3096.9

34,7147.0

34,311

6.9

34,7147.0

34,311

6.9

Greater Tokyo area
Major regional
citiesSubtotal

28,937

5.8

28,7795.8

13,060

2.6

8,913

1.8

41,998

8.4

37,693

7.6

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

-

-

-

-

4,661

0.9

1,649

0.3

Total real estate

Residences

4,661

0.9

1,649

0.3

169,41734.0

168,54034.1

211,37342.5

209,60942.4

380,79076.5

378,149

76.4

Total real estate in trust

427,45085.9

417,492

84.4

Preferred equity interest (Note 5)

17,856

3.6

17,856

3.6

Deposits and other assets

17,878

3.6

25,1595.1

497,899100.0

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

HotelsGreater Tokyo area
Major regional
citiesSubtotal

Total assets (Note 6)(Note 1)
(Note 2)

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

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

- 32 -

2

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

Name of property

Book value(JPY million)

Leasable area
Occupancy rate
Ratio of
Leased area(m2)(%)
rentalrevenue(m2)(Note 2)
(Note 3)(%) (Note 4)Main use

D200

Westin Grand Cayman Seven Mile
Beach Resort & Spa

28,832

21,528.23

21,528.23

100.0

-

Hotel

D43

Hotel MyStays Gotanda Station

26,231

10,137.88

10,137.88

100.0

2.1

Hotel

D60

Hotel MyStays Premier Akasaka

20,2868,620.69

8,620.69

100.0

1.3

Hotel

D44

Hotel Epinard Nasu

18,84737,702.33

37,702.33

100.0

12.4

Hotel

D61

Hotel MyStays Premier Sapporo Park

16,044

21,670.64

21,670.64

100.0

1.3

Hotel

D64

Hotel MyStays Sapporo Aspen

15,28915,313.17

15,313.17

100.0

0.9

Hotel

D50

Hotel MyStays Shin Osaka ConferenceCenter12,82813,026.99

13,026.99

100.0

1.2

Hotel

D47

Hotel MyStays Premier Kanazawa

12,582

13,250.03

13,250.03

100.0

1.9

Hotel

D82

Hotel MyStays Premier Narita

10,16736,519.70

36,519.70

100.0

4.8

Hotel

D51

Hotel MyStays Premier Omori

9,687

11,849.61

11,849.61

100.0

1.3

Hotel

Total

170,797

189,619.27

189,619.27

100.0

27.0

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

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

- 33 -

3

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

Name of property

Location(Note 1)

Type of asset

A26

Nisshin Palacestage
Daitabashi

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

A28

Growth Maison Gotanda

2-26-6 Nishi-Gotanda, Shinagawa-ku,
Tokyo

A29

Growth Maison Kameido

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

A30

Emerald House

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

A32

Suncrest Shakujii-Koen

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

A33

Growth Maison ShinYokohama

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

A34

Belle Face UenoOkachimachi

1-27-5 Higashi-Ueno, Taito-ku, Tokyo

A35

Grand Rire Kameido

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

A37

Growth Maison Yoga

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

A38

Route Tachikawa

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

A39

Shibuya-Honmachi Mansion

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

A40

City Heights Kinuta

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

A41

Acseeds Tower
Kawaguchi- Namiki

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

A43

College Square Machida

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

A44

Belair Meguro

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

A45

Wacore Tsunashima I

2-7-47 Tarumachi, Kohoku-ku,
Yokohama-shi, Kanagawa- 34 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

1,771.13

1,250

1,076

1,051.50

1,060

821

1,367.96

1,210

941

2,152.31

1,410

1,313

3,029.16

1,160

1,044

1,858.44

1,210

918

1,351.11

1,090

908

1,562.26

1,030

776

1,015.34803

716

1,368.57

675

634

1,167.50685

706

1,235.93577

651

1,210.74766

502

1,047.75

507

556

557.05640545

907.46543

518

Name of property

Location(Note 1)

Type of asset

A46

Foros Nakamurabashi

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

A47

Growth Maison Kaijin

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

A48

College Square Machiya

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

A59

Towa City Coop
Shinotsuka II

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

A61

Bichsel Musashiseki

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

A63

Towa City Coop Sengencho

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

A64Royal Park Omachi

2-11-10 Omachi, Aoba-ku, Sendai-shi,
Miyagi

A65

Lexington Square
Haginomachi

1-15-16 Haginomachi, Miyagino-ku,
Sendai-shi, Miyagi

A66

Visconti Kakuozan

2-44 Otanacho, Chikusa-ku, Nagoyashi, Aichi

A72

Lexington Square
Honjo Azumabashi

4-20-6 Higashi-Komagata, Sumida-ku,
Tokyo

A73

AMS TOWER Minami 6-Jo

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

A79

Revest Honjin

2-13 Toriidori, Nakamura-ku, Nagoyashi, Aichi

A80

Revest Matsubara

3-13-12 Matsubara, Naka-ku, Nagoyashi, Aichi

A82

Alba Noritake Shinmachi

3-6-8 Noritake Shinmachi, Nishi-ku,
Nagoya-shi, Aichi

A83

Revest Meieki Minami

2-13-33 Meieki-Minami, Nakamuraku, Nagoya-shi, Aichi

A84

Revest Heian

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

A87

Excellente Kagurazaka

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

A88

Luna Court Edobori

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

A90

Queen's Court Fukuzumi

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

A92

Belair Oimachi

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

A93

Siete Minami-Tsukaguchi

3-18 Minami-Tsukaguchimachi,
Amagasaki-shi, Hyogo- 35 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)815.77604

493

2,040.27

527

529

871.35580

434

1,627.13

1,340

790

1,220.24856

567

3,426.36

1,470

1,001

1,929.59

701

383

1,528.58

441

260

705.75303229

784.74703

407

4,460.56

1,230

875

1,933.80

878

569

1,955.40

867

559

1,731.68

797

509

1,634.60

834

498

1,554.03

809

502

701.92761

491

1,185.50641

457

765.18737411

530.60619

379

1,020.86

496

334

Name of property

Location(Note 1)

A94

Prime Life Sannomiya
Isogami Koen

4-3-23 Isogamidori, Chuo-ku, Kobeshi, Hyogo

A96

Century Park Shinkawa 1bankan

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

A97

West Avenue

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

A98

Little River Honmachibashi

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

A99

Prime Life Mikage

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

A101

Lieto Court Mukojima

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

A102

Lieto Court Nishi-Ojima

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

A103

Royal Parks Momozaka

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

A104

Royal Parks Shinden

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

A106

Royal Parks Seasir MinamiSenju

3-41-7 Minami-Senju, Arakawa-ku,
TokyoType of asset

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

Subtotal
B18

AEON TOWN Sukagawa

105 Furukawa, Sukagawa-shi,
Fukushima

Trust
beneficiaryinterest

Subtotal
D01

Hotel MyStays Kanda

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

D02

Hotel MyStays Asakusa

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

D03

Hotel MyStays Kyoto-Shijo

52 Kasabokocho, Higashiiru,
Aburanokoji, Shijyodori, Shimogyoku, Kyoto-shi, Kyoto

D04

MyStays Shin-Urayasu
Conference Center

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

D05

Hotel MyStays Maihama

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

D06

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

D07

Hotel MyStays NagoyaSakae

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

D08

Hotel MyStays SakaisujiHonmachi

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

D09

Hotel MyStays Yokohama

4-81 Sueyoshicho, Naka-ku,
Yokohama-shi, Kanagawa- 36 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)789.12522

328

1,477.62490

297

794.80369

308

974.81437

272

761.18379

262

2,940.20

2,180

1,609

2,048.28

2,130

1,558

8,776.26

3,330

2,573

15,797.29

6,010

4,630

6,496.86

3,150

2,530

95,934.54

49,807

37,69318,440.58

2,380

1,649

18,440.58

2,380

1,649

2,585.72

4,900

2,849

3,327.38

4,400

2,474

7,241.51

9,080

5,606

6,232.30

7,200

4,452

2,456.36

6,800

4,576

9,445.32

6,410

3,607

9,064.71

5,520

2,531

4,188.83

3,590

2,278

7,379.43

3,890

2,184

Name of property

Location(Note 1)

D10

Hotel MyStays Nippori

5-43-7 Higashi-Nippori, Arakawa-ku,
Tokyo

D11

Hotel MyStays FukuokaTenjin-Minami

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

D12

Flexstay Inn Iidabashi

3-26 Shin-Ogawamachi, Shinjuku-ku,
Tokyo

D13

Hotel MyStays
Ueno Inaricho

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

D14

Flexstay Inn Shinagawa

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

D15

Flexstay Inn Tokiwadai

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

D16

Flexstay Inn Sugamo

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

D17

Hotel MyStays Otemae

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

D18

Hotel MyStays
Kiyosumi Shirakawa

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

D19

Flexstay Inn Nakanobu P1

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

D20

Flexstay Inn Nakanobu P2

4-27-8 Futaba, Shinagawa-ku, TokyoD21

APA Hotel
Yokohama-Kannai

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

D22

Hotel MyStays
Hakodate-Goryokaku

26-17 Honcho, Hakodate-shi,
Hokkaido

D23

Flexstay Inn Shirogane

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

D24

Hotel MyStays Haneda

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

D25

Hotel MyStays Kameido P1

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

D26

Hotel MyStays Ueno
Iriyaguchi

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

D27

Hotel MyStays Kameido P2

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

D28

Hotel MyStays Shimizu

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

D29

Super Hotel Shinbashi/
Karasumoriguchi

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

D30

Flexstay Inn Higashi-Jujo

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

D31

Hotel MyStays Utsunomiya

2-4-1 Higashi-Shukugo, Utsunomiyashi, Tochigi

Type of asset- 37 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

1,719.29

2,510

1,752

3,412.71

5,550

1,415

2,953.38

2,090

1,320

1,150.76

2,000

1,198

1,134.52

1,980

1,176

2,539.75

2,120

1,178

2,089.86

2,200

1,083

4,956.66

2,410

1,125

2,673.64

1,460

858

770.56803

550

391.49387

277

6,568.51

9,930

7,380

7,961.26

3,910

2,665

1,754.06

2,360

2,063

5,400.16

8,380

7,070

4,349.67

7,200

5,258

2,247.92

3,760

3,602

2,793.99

4,810

3,488

3,559.81

2,390

2,043

1,403.89

1,930

1,571

1,714.53

1,300

1,258

11,733.23

2,010

1,179

Name of property

Location(Note 1)

Type of asset

D32

Flexstay Inn KawasakiKaizuka

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

D33

Comfort Hotel Toyama

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

Flexstay Inn KawasakiOgawacho

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

D35

Flexstay Inn Ekoda

8-6 Sakaecho, Nerima-ku, Tokyo

D36

Super Hotel Tokyo-JR
Tachikawa Kitaguchi

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

D37

Super Hotel JR Uenoiriyaguchi

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

D38

Hotel MyStays Shinsaibashi

1-9-30 Nishi-Shinsaibashi, Chuo-ku,
Osaka-shi, Osaka

D39

Comfort Hotel Kurosaki

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

D40

Comfort Hotel Maebashi

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

D41

Comfort Hotel TsubameSanjo

2-115 Sugoro, Sanjo-shi, Niigata

D42

Comfort Hotel Kitami

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

D43

Hotel MyStays Gotanda
Station (Note 5)

2-6-8 Nishi-Gotanda, Shinagawa-ku,
Tokyo

D44

Hotel Epinard Nasu

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

D45

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

D46

Hotel MyStays
Hamamatsucho

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

D47

Hotel MyStays PremierKanazawa

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

D48

Takamatsu Tokyu REI Hotel

9-9 Hyogomachi, Takamatsu-shi,
KagawaD49

Hotel MyStays Premier
Hamamatsucho

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

D50

Hotel MyStays Shin Osaka
Conference Center

6-2-4 Nishinakashima, Yodogawa-ku,
Osaka-shi, Osaka and two other lots

D51

Hotel MyStays PremierOmori

6-11-2 Minami Oi, Shinagawa-ku,
Tokyo and 13 other lots

D52

Beppu Kamenoi Hotel

2160-1 Chuocho, Beppu-shi, Oita and12 other lots

D53

Hotel MyStays Sapporo
Station4-15 Kita Hachijyo Nishi, Kita-ku,
Sapporo-shi, Hokkaido- 38 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

1,190.57

1,110

874

3,305.64

1,160

889

725.60889

862

3,932.93

4,580

4,754

1,832.97

1,240

1,071

1,279.16

1,180

1,058

1,942.01

2,340

2,969

3,207.60

1,240

1,016

3,660.96

1,120

969

3,099.90

1,080

906

3,009.50

915

758

10,137.88

23,70026,23137,702.33

22,60018,847

5,083.06

7,990

7,741

1,951.90

6,120

7,814

13,250.03

12,70012,582

7,148.17

2,240

2,078

6,151.93

10,300

7,946

13,026.99

12,80012,828

11,849.61

9,640

9,687

19,422.08

8,670

7,785

7,267.88

8,180

7,562

Location(Note 1)Name of property

Type of asset

D54

Hotel MyStays Yokohama
Kannai

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

D55

Art Hotel Joetsu

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

D56

Art Hotel Hirosaki City

1-1-2, 1-6, 1-7, 2-1, Omachi, Hirosakishi, Aomori

D57

Hotel MyStays Oita

1-32, Niagemachi Oita-shi, Oita

D58

Hotel MyStays Gotanda

2-5-4, Higashigotanda Shinagawa-ku,
Tokyo

D59

Hotel MyStays Tachikawa

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

D60

Hotel MyStays Premier
Akasaka

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

D61

Hotel MyStays Premier
Sapporo Park

2-2-10, Minamikujo Nishi, Chuo-ku,
Sapporo-shi, Hokkaido

D62

Hotel MyStays Ueno East

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

D63

Hotel MyStays Midosuji
Honmachi

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

D64

Hotel MyStays
Aspen

5-1 Nishi 4-chome, Kita 8-jo, Kita-ku,
Sapporo-shi, Hokkaido, and sevenother lots

D65

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

D66

Hotel MyStays Fuji Onsen
Resort2654 Arakura Deguchi, Fujiyoshidashi, Yamanashi, and 15 other lots

D67

Hotel Sonia Otaru

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

D68

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

D69

Art Hotel Niigata Station

1-1 Sasaguchi, Chuo-ku, Niigata-shi,
Niigata

D70

Hotel MyStays
Nishiki

3-8-21 Nishiki, Naka-ku, Nagoya-shi,
Aichi

D71

Hotel Nord Otaru

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

D72

Hotel MyStays Kagoshima
Tenmonkan

2-7 Yamanokuchi-cho, Kagoshima-shi,
Kagoshima

D73

Art Hotel Asahikawa

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

D74

Hotel MyStays Matsuyama

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

D75

Hotel MyStays
Susukino

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

SapporoNagoyaSapporo- 39 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)4,501.18

5,250

5,114

7,563.60

2,690

2,601

14,826.30

2,740

2,504

3,254.69

1,560

1,467

1,839.77

3,930

4,043

3,844.64

3,320

3,180

8,620.69

23,10020,286

21,670.64

16,20016,044

4,396.02

5,110

5,151

3,429.43

3,520

4,839

15,313.17

15,00015,28917,247.54

9,310

9,515

5,498.49

9,760

8,883

6,509.41

5,700

5,637

5,931.84

5,410

5,613

10,403.01

5,350

5,352

6,077.99

5,000

5,091

6,047.43

4,050

4,167

7,659.55

3,400

3,358

25,131.84

3,090

2,948

8,274.37

3,160

2,887

2,853.26

2,920

2,996

Location(Note 1)Name of property

Type of asset

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

Leasable area(m2) (Note 2)

D76

Hotel MyStays
Nakajima Park

Sapporo1-20 Nishi 1-chome, Minami 14-jo,
Chuo-ku, Sapporo-shi, Hokkaido

D77

Hotel MyStays Sapporo
Nakajima Park Annex

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

D78

Flexstay Inn Sakuragicho

2-72-2 Hanasaki-cho, Naka-ku,
Yokohama-shi, Kanagawa, and fourother lots

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

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

D80

Hotel MyStays Kagoshima
Tenmonkan Annex

1-20 Gofuku-machi, Kagoshima-shi,
Kagoshima

D81

Hotel MyStays Nayoro

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

D82

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

D83

Art Hotel Morioka

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

D200

Westin Grand Cayman
Seven Mile Beach Resort &Spa

30620 Seven Mile Beach Road, Grand
Cayman, Cayman Islands

The
Leasehold21,528.23

D201

Sunshine Suites Resort

1465 Esterley Tibbetts Highway,
Grand Cayman, Cayman Islands

The
Leasehold6,723.11

MyStaysPremierAppraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

5,473.41

1,970

2,037

1,775.21

1,520

1,526

1,308.61

1,420

1,399

2,156.70

1,240

1,267

2,047.70

1,190

1,153

1,985.27926

894

36,519.70

10,10010,167

16,727.08

5,370

5,407

36,461(USD 317,000
thousand)(Note 6)
6,671
(USD 58,000
thousand)(Note 6)

28,832

5,476

Subtotal

572,519.79

471,512412,461

Total

686,894.91

523,699451,804(Note 1) “Location” is, in principle, based on the indicated address (jyukyohyoji), except that if the jyukyohyoji system has notbeen implemented for such property, the location is based on the land number (chiban).
(Note 2) Leasable areas of Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort indicate the areas
subject to management contract.
(Note 3) “Appraisal value as of the end of the Reporting Period” is the value appraised or researched by Asset Research andDevelopment Inc., Japan Real Estate Institute, JLL Morii Valuation & Advisory K.K., The Tanizawa Sogo Appraisal Co.,
Ltd., Daiwa Real Estate Appraisal Co., Ltd. or CBRE, Inc., in accordance with the Articles of Incorporation of INV andthe regulations of The Investment Trusts Association, Japan.
(Note 4) Individual trust beneficiary interests were integrated into three groups with other trust beneficiary interests when INV
procured funds through debt financing backed by trust assets in July 2011. As a result of disposition of assets anddetachment of trust beneficiary interest from an integrated trust account thereafter, the grouping of trust beneficiaryinterests at the end of the Reporting Period is as follows:
Group 1
Nisshin Palacestage Daitabashi, Growth Maison Shin-Yokohama, Belle Face Ueno-Okachimachi, Growth Maison
Yoga, Shibuya-Honmachi Mansion, and Foros Nakamurabashi.
Group 2
College Square Machida, Belair Meguro, and Wacore Tsunashima I.
Group 3
Suncrest Shakujii-Koen, Grand Rire Kameido, Acseeds Tower Kawaguchi-Namiki, Growth Maison Kaijin, andCollege Square Machiya.
(Note 5) “Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated deeming the owned
portion and the floor expansion portion as one.
(Note 6) “Appraisal value as of the end of the Reporting Period” is converted into JPY using the exchange rate of USD 1 =JPY 115.02, which is the exchange rate on the closing date of the fiscal period (December 31, 2021).

- 40 -

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

Name of property

36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)37th fiscal period(July 1, 2021 to December 31, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)Nisshin Palacestage
Daitabashi

1

90.8

38,886

1.0

1

75.1

34,792

0.6

A28 Growth Maison Gotanda

1

100.0

27,696

0.7

1

100.0

28,4940.5

A29

Growth Maison Kameido

1

92.5

35,191

0.9

1

95.4

34,391

0.6

A30

Emerald House

1

100.0

47,212

1.2

1

97.0

41,5060.7

A32

Suncrest Shakujii-Koen

1

100.0

39,472

1.0

1

100.0

38,5430.7

A33

Growth Maison ShinYokohama

1

94.0

38,130

1.0

1

95.5

38,1350.7

A34

Belle Face UenoOkachimachi

1

100.0

33,266

0.9

1

95.5

31,891

0.5

A35Grand Rire Kameido

1

100.0

26,619

0.7

1

100.0

26,6190.5

A37Growth Maison Yoga

1

92.4

22,403

0.6

1

97.4

23,816

0.4

A38

Route Tachikawa

1

100.0

22,167

0.6

1

100.0

21,9580.4

A39

Shibuya-Honmachi Mansion

1

92.4

20,495

0.5

1

98.1

20,1670.3

A40City Heights Kinuta

1

100.0

18,918

0.5

1

100.0

19,1160.3

A41

Acseeds Tower KawaguchiNamiki

1

94.7

26,363

0.7

1

91.2

25,535

0.4

A43

College Square Machida

1

100.0

16,609

0.4

1

100.0

16,6090.3

A44

Belair Meguro

1

96.0

16,116

0.4

1

76.0

14,6250.3

A45

Wacore Tsunashima I

1

89.9

18,315

0.5

1

82.0

17,2000.3

A46

Foros Nakamurabashi

1

100.0

19,366

0.5

1

91.2

18,7840.3

A47

Growth Maison Kaijin

1

100.0

23,284

0.6

1

100.0

23,3480.4

A48

College Square Machiya

1

100.0

14,924

0.4

1

100.0

14,924

0.3

A59

Towa City Coop Shinotsuka
II

1

98.8

35,962

0.9

1

95.2

35,705

0.6

A61

Bichsel Musashiseki

1

88.7

23,199

0.6

1

97.2

22,896

0.4

A63

Towa City Coop Sengencho

1

95.6

58,174

1.5

1

89.9

58,607

1.0

A64Royal Park Omachi

1

96.7

26,517

0.7

1

98.1

26,587

0.5

A65

Lexington Square
Haginomachi

1

100.0

17,234

0.5

1

100.0

18,091

0.3

A66

Visconti Kakuozan

1

76.0

10,868

0.3

1

65.7

8,634

0.1

A26

- 41 -Name of property

36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)37th fiscal period(July 1, 2021 to December 31, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

A72

Lexington Square Honjo
Azumabashi

1

93.9

18,515

0.5

1

100.0

18,0100.3

A73

AMS TOWER Minami 6-Jo

1

90.0

43,675

1.1

1

92.2

43,754

0.7

A77

Invoice Shin-Kobe Residence(Note 4)

1

97.2

50,571

1.3--

48,0360.8

A78

Cosmo Court Motomachi(Note 4)

1

93.8

38,3101.0--

35,0490.6

A79

Revest Honjin

1

93.8

31,746

0.8

1

80.1

28,9320.5

A80

Revest Matsubara

1

71.8

24,719

0.6

1

83.0

25,013

0.4

A82

Alba Noritake Shinmachi

1

93.7

26,586

0.7

1

97.2

26,3090.5

A83

Revest Meieki Minami

1

83.8

23,695

0.6

1

77.4

22,5980.4

A84

Revest Heian

1

98.4

23,970

0.6

1

95.2

23,7380.4

A85

Vendir Hamaotsu Ekimae(Note 4)

1

94.7

35,0750.9--

33,073

0.6

A86

Salvo Sala (Note 4)

1

88.7

23,732

0.6--

22,3330.4

A87

Excellente Kagurazaka

1

85.1

18,385

0.5

1

94.1

18,1670.3

A88

Luna Court Edobori

1

96.0

20,406

0.5

1

86.0

20,1070.3

A89

Winntage Kobe Motomachi(Note 4)

1

94.6

22,7780.6--

20,2050.3

A90

Queen's Court Fukuzumi

1

93.1

17,407

0.5

1

89.7

16,976

0.3

A91

Corp Higashinotoin (Note 4)

1

95.5

18,5250.5--

15,6880.3

A92

Belair Oimachi

1

92.9

14,975

0.4

1

92.6

15,491

0.3

A93

Siete Minami-Tsukaguchi

1

95.0

17,374

0.5

1

97.5

16,9930.3

A94

Prime Life Sannomiya
Isogami Koen

1

100.0

15,333

0.4

1

96.9

14,955

0.3

A95

HERMITAGE NANBA
WEST (Note 4)

1

100.0

16,451

0.4--

13,9240.2

A96

Century Park Shinkawa 1bankan

1

93.2

18,334

0.5

1

90.9

18,0350.3

A97West Avenue

1

95.0

13,262

0.3

1

92.5

12,7630.2

A98

Little River Honmachibashi

1

100.0

13,118

0.3

1

96.9

13,9900.2

A99

Prime Life Mikage

1

100.0

12,579

0.3

1

90.1

12,033

0.2

A101 Lieto Court Mukojima

1

98.0

56,927

1.5

1

97.5

56,293

1.0

A102 Lieto Court Nishi-Ojima

1

94.5

49,957

1.3

1

98.8

49,2650.8- 42 -Name of property

36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)37th fiscal period(July 1, 2021 to December 31, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

A103 Royal Parks Momozaka

1

94.6

158,764

4.2

1

95.7

161,517

2.8

A104 Royal Parks Shinden

1

100.0

219,479

5.8

1

100.0

221,351

3.8

1

93.3

118,454

3.1

1

92.9

119,893

2.1

54

95.4

1,840,513

48.4

47

94.6

1,805,491

30.9

A106

Royal Parks Seasir MinamiSenju
Subtotal

B17

Lexington Plaza Hachiman(Note 5)

1

95.8

158,023

4.2

-

-

6,288

0.1

B18

AEON TOWN Sukagawa

1

100.0

141,243

3.7

1

100.0

141,434

2.4

Subtotal

2

98.7

299,267

7.9

1

100.0

147,722

2.5

D01

Hotel MyStays Kanda

1

100.0

7,242

0.2

1

100.0

3,279

0.1

D02

Hotel MyStays Asakusa

1

100.0

7,544

0.2

1

100.0

1,135

0.0

D03

Hotel MyStays Kyoto-Shijo

1

100.0

17,973

0.5

1

100.0

17,6670.3

D04

MyStays Shin-Urayasu
Conference Center

1

100.0

13,471

0.4

1

100.0

27,0700.5

D05

Hotel MyStays Maihama

1

100.0

13,302

0.3

1

100.0

41,6420.7

D06

Hotel MyStays Premier
Dojima1

100.0

33,310

0.9

1

100.0

35,9260.6

D07

Hotel MyStays NagoyaSakae

1

100.0

13,217

0.3

1

100.0

35,781

0.6

D08

Hotel MyStays SakaisujiHonmachi

1

100.0

8,860

0.2

1

100.0

5,502

0.1

D09

Hotel MyStays Yokohama

1

100.0

8,292

0.2

1

100.0

58,2081.0

D10Hotel MyStays Nippori

1

100.0

6,095

0.2

1

100.0

2,637

0.0

D11

Hotel MyStays FukuokaTenjin-Minami

1

100.0

5,745

0.2

1

100.0

7,332

0.1

D12

Flexstay Inn Iidabashi

1

100.0

5,371

0.1

1

100.0

5,606

0.1

D13

Hotel MyStays
Ueno Inaricho

1

100.0

4,345

0.1

1

100.0

775

0.0

D14

Flexstay Inn Shinagawa

1

100.0

3,995

0.1

1

100.0

5,900

0.1

D15

Flexstay Inn Tokiwadai

1

100.0

4,937

0.1

1

100.0

2,685

0.0

D16

Flexstay Inn Sugamo

1

100.0

4,623

0.1

1

100.0

2,739

0.0

D17

Hotel MyStays Otemae

1

100.0

3,995

0.1

1

100.0

6,249

0.1

D18

Hotel MyStays Kiyosumi
Shirakawa

1

100.0

3,283

0.1

1

100.0

7,274

0.1

- 43 -Name of property

36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)37th fiscal period(July 1, 2021 to December 31, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D19

Flexstay Inn Nakanobu P1

1

100.0

1,774

0.0

1

100.0

973

0.0

D20

Flexstay Inn Nakanobu P2

1

100.0

989

0.0

1

100.0

907

0.0

D21

APA Hotel
Yokohama-Kannai

1

100.0

249,996

6.6

1

100.0

245,859

4.2

D22

Hotel MyStays HakodateGoryokaku

1

100.0

7,242

0.2

1

100.0

36,3380.6

D23

Flexstay Inn Shirogane

1

100.0

5,431

0.1

1

100.0

1,755

0.0

D24

Hotel MyStays Haneda

1

100.0

18,468

0.5

1

100.0

83,8991.4

D25

Hotel MyStays Kameido P1

1

100.0

17,985

0.5

1

100.0

20,9300.4

D26

Hotel MyStays Ueno
Iriyaguchi

1

100.0

11,467

0.3

1

100.0

3,573

0.1

D27

Hotel MyStays Kameido P2

1

100.0

11,467

0.3

1

100.0

16,3760.3

D28

Hotel MyStays Shimizu

1

100.0

7,363

0.2

1

100.0

37,561

0.6

D29Super Hotel
Shinbashi/Karasumoriguchi

1

100.0

39,426

1.0

1

100.0

39,4260.7

D30

Flexstay Inn Higashi-Jujo

1

100.0

4,466

0.1

1

100.0

1,287

0.0

D31

Hotel MyStays Utsunomiya

1

100.0

7,604

0.2

1

100.0

40,2740.7

D32

Flexstay Inn KawasakiKaizuka

1

100.0

3,742

0.1

1

100.0

1,423

0.0

D33

Comfort Hotel Toyama

1

100.0

35,928

0.9

1

100.0

35,9280.6

D34

Flexstay Inn KawasakiOgawacho

1

100.0

3,017

0.1

1

100.0

592

0.0

D35

Flexstay Inn Ekoda

1

100.0

12,227

0.3

1

100.0

16,834

0.3

D36Super Hotel Tokyo-JR
Tachikawa Kitaguchi

1

100.0

31,787

0.8

1

100.0

31,787

0.5

D37Super Hotel JR Uenoiriyaguchi

1

100.0

27,275

0.7

1

100.0

27,2750.5

D38

Hotel MyStays Shinsaibashi

1

100.0

7,484

0.2

1

100.0

1,655

0.0

D39

Comfort Hotel Kurosaki

1

100.0

37,894

1.0

1

100.0

35,271

0.6

D40

Comfort Hotel Maebashi

2

100.0

43,811

1.2

2

100.0

43,811

0.8

D41

Comfort Hotel TsubameSanjo

2

100.0

34,949

0.9

2

100.0

34,9490.6

D42

Comfort Hotel Kitami

1

100.0

30,300

0.8

1

100.0

26,1030.4

D43

Hotel MyStays Gotanda
Station1

100.0

55,840

1.5

1

100.0

120,840

2.1- 44 -Name of property

36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)37th fiscal period(July 1, 2021 to December 31, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D44

Hotel Epinard Nasu

1

100.0

38,627

1.0

1

100.0

721,419

12.4

D45

Hotel MyStays Fukuoka
Tenjin1

100.0

17,744

0.5

1

100.0

23,7150.4

D46

Hotel MyStays
Hamamatsucho

1

100.0

16,537

0.4

1

100.0

12,3590.2

D47

Hotel MyStays PremierKanazawa

1

100.0

29,272

0.8

1

100.0

108,700

1.9

D48

Takamatsu Tokyu REI Hotel

2

95.8

92,699

2.4

2

95.8

96,9491.7

D49

Hotel MyStays Premier
Hamamatsucho

1

100.0

21,607

0.6

1

100.0

45,7840.8

D50

Hotel MyStays Shin Osaka
Conference Center

1

100.0

38,868

1.0

1

100.0

69,5901.2

D51

Hotel MyStays Premier
Omori

1

100.0

27,763

0.7

1

100.0

76,102

1.3

D52

Beppu Kamenoi Hotel

1

100.0

36,031

0.9

1

100.0

175,622

3.0

D53

Hotel MyStays Sapporo
Station1

100.0

26,760

0.7

1

100.0

27,1480.5

D54

Hotel MyStays Yokohama
Kannai1

100.0

14,183

0.4

1

100.0

51,4720.9

D55

Art Hotel Joetsu

1

100.0

9,737

0.3

1

100.0

44,0340.8

D56

Art Hotel Hirosaki City

1

100.0

10,562

0.3

1

100.0

66,565

1.1

D57

Hotel MyStays Oita

1

100.0

5,552

0.1

1

100.0

62,128

1.1

D58

Hotel MyStays Gotanda

1

100.0

11,316

0.3

1

100.0

17,3020.3

D59

Hotel MyStays Tachikawa

1

100.0

9,445

0.2

1

100.0

38,5680.7

D60

Hotel MyStays Premier
Akasaka
Hotel MyStays Premier
Sapporo Park

1

100.0

43,696

1.1

1

100.0

73,012

1.3

1

100.0

34,623

0.9

1

100.0

74,3181.3

D62

Hotel MyStays Ueno East

1

100.0

14,022

0.4

1

100.0

3,502

0.1

D63

Hotel MyStays Midosuji
HonmachiHotel MyStays Sapporo
Aspen

1

100.0

10,541

0.3

1

100.0

1,374

0.0

1

100.0

41,061

1.1

1

100.0

50,6260.9

D65

Art Hotel Ishigakijima

1

100.0

22,110

0.6

1

100.0

16,8030.3

D66

Hotel MyStays Fuji Onsen
Resort1

100.0

25,932

0.7

1

100.0

86,961

1.5

D67

Hotel Sonia Otaru

1

100.0

11,547

0.3

1

100.0

58,3251.0

D68

Hotel MyStays Kanazawa
Castle1

100.0

15,390

0.4

1

100.0

18,8680.3

D69

Art Hotel Niigata Station

1

100.0

24,350

0.6

1

100.0

95,290

1.6

D61

D64

- 45 -Name of property

36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)37th fiscal period(July 1, 2021 to December 31, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D70

Hotel MyStays Nagoya
Nishiki1

100.0

13,056

0.3

1

100.0

21,1290.4

D71

Hotel Nord Otaru

1

100.0

10,220

0.3

1

100.0

31,8810.5

D72

Hotel MyStays Kagoshima
Tenmonkan

2

100.0

16,299

0.4

2

100.0

65,305

1.1

D73

Art Hotel Asahikawa

1

100.0

9,860

0.3

1

100.0

16,1020.3

D74

Hotel MyStays Matsuyama

1

100.0

11,386

0.3

1

100.0

24,021

0.4

Hotel MyStays Sapporo
Susukino
Hotel MyStays Sapporo
Nakajima Park
Hotel MyStays Sapporo
Nakajima Park Annex

1

100.0

6,464

0.2

1

100.0

5,426

0.1

1

100.0

5,524

0.1

1

100.0

2,728

0.0

1

100.0

3,868

0.1

1

100.0

3,397

0.1

Flexstay Inn Sakuragicho

1

100.0

4,124

0.1

1

100.0

12,9950.2

MyCUBE by MYSTAYS
Asakusa Kuramae
Hotel MyStays Kagoshima
Tenmonkan Annex

1

100.0

3,822

0.1

1

100.0

3,377

0.1

1

100.0

3,742

0.1

1

100.0

16,8370.3

D81

Hotel MyStays Nayoro

1

100.0

3,259

0.1

1

100.0

30,0580.5

D82

Hotel MyStays Premier
Narita1

100.0

30,459

0.8

1

100.0

279,103

4.8

D83

Art Hotel Morioka

1

100.0

20,767

0.5

1

100.0

82,664

1.4

Subtotal

87

99.9

1,666,395

43.8

87

99.9

3,884,633

66.5

Total

143

99.2

3,806,176

100.0

135

99.2

5,837,847

100.0

D75
D76
D77
D78
D79
D80

(Note 1) “Occupancy rate” is calculated by dividing the leased area by leasable area.
(Note 2) “Occupancy rate” and “Ratio of rental revenue” are rounded to one decimal place.
(Note 3) “Rental revenue (during period)” indicates leasing operation revenues during the fiscal period for each property andhas been rounded down to the nearest thousand yen.
(Note 4) The trust beneficiary interests of Invoice Shin-Kobe Residence, Cosmo Court Motomachi,Vendir Hamaotsu Ekimae,
Salvo Sala, Winntage Kobe Motomachi, Corp Higashinotoin, and HERMITAGE NANBA WEST were sold on
December 22, 2021.
(Note 5) The trust beneficiary interests of Lexington Plaza Hachiman was sold on July 2, 2021.

- 46 -

36th fiscal period
37th fiscal period(January 1, 2021 to June 30, 2021)(July 1, 2021 to December 31, 2021)
Management
Management
Occupancy
contract
Occupancy
contract
Ratio ofRatio of
Number ofrate
revenue
Number ofrate
revenuemanagement
management
tenants(at end of(duringtenants(at end of(during
contract
contract(at end of
period)period)(at end of
period)period)revenuerevenueperiod)(%)(JPY
period)
(%)
(JPY
(%)
(%)
(unit)(Note 1)
thousand)(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 2)
(Note 3)(Note 4)(Note 4)

Name of property

D200

Westin Grand Cayman Seven
Mile Beach Resort & Spa

1

100.0

-

-

1

100.0

-

-

D201

Sunshine Suites Resort

1

100.0

5,558

-

1

100.0

9,817

-

Total

2

100.0

-

-

2

100.0

-

-

(Note 1) “Occupancy rate” is calculated using the area subject to management contract.
(Note 2) “Occupancy rate” and “Ratio of management contract revenue” are rounded to one decimal place.
(Note 3) “Management contract revenue” is converted to JPY using the exchange rate at the time of the transaction.
(Note 4) If hotel operating expenses exceed hotel operating revenues, the management contract revenue is set to JPY 0 andthe excess amount is recorded as the management contract loss.

4

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

5

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

6

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

Name
Preferred equity
securities in
Kingdom Special
Purpose Company

Type

Quantity Book value (JPY million)(units)Unit priceAmountFair value (JPY million) Valuation gainor loss
Unit priceAmount (JPY million)

Notes

Preferred equity 178,458
securities-

17,856-

17,3201)(536) (Note(Note 2)

Total-

17,856-

17,320(536)(Note 1) Book value of the preferred equity securities that is classified as investment in affiliates indicates the acquisition cost.
(Note 2) INV owns 178,458 units of preferred equity securities issued by Kingdom Special Purpose Company (equivalent to49.0% of preferred equity securities issued and outstanding after the issuance of the said preferred equity securities),with the Sheraton Grande Tokyo Bay Hotel as an underlying asset.

- 47 -

7

Status of Contract Amount and Fair Value of Specified Transaction
As of the end of the Reporting Period, the contract amount and fair value of the outstanding transaction under the specified
transaction account of INV are as follows.
(Unit: JPY thousand)Category

Contract amount(Note 1)
Amounts due after
one yearTransaction type, etc.

Fair value(Note 2)Non-market
Interest rate swap
64,648,000
50,476,000
18,325
Receive floating rate/pay fixed ratetransaction(Note 1) The contract amount, etc. for interest rate swap are stated based on a notional principal.
(Note 2) Estimation method for fair value
Interest rate swap
Estimated based on the price, etc. presented by the correspondent financial institutions.

8

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

9

Assets Owned Outside of Japan or the Region
Assets owned outside of Japan or the region held by INV at the end of the Reporting Period are as below.

Country nameAmount held
(JPY million)(Note 1)

Appraisal value as of the end of
the Reporting Period (JPY million) (Note 2)
Percentage of
total assets (%)

No. ofproperties(properties)

Japan

435,351

498,412

92.0

132

The Cayman Islands

34,30943,132

8.0

2

Total

469,660

541,545

100.0

134

(Note 1)

(Note 2)

“Amount held” is from the balance sheet (book value after depreciation for real estate and trust beneficiaryinterest in real estate; and book value for preferred equity securities with real estate as underlying assets) as ofDecember 31, 2021.
“Appraisal value as of the end of the Reporting Period” indicates the real estate appraisal value as of December
31, 2021, or the research value stated in the real estate research report and the appraisal value of investment
securities. “Appraisal value as of the end of the Reporting Period” for preferred equity securities which INV
holds in Japan indicates acquisition cost since their fair value is deemed extremely difficult to value. “Appraisal
value as of the end of the Reporting Period” for assets which INV holds in the Cayman Islands indicates theamount converted to JPY using the exchange rate of USD 1 = JPY 115.02, which is the exchange rate on theclosing date of the fiscal period (December 31, 2021).

- 48 -

Capital Expenditures for Properties Held by INV

1Schedule for Capital Expenditures
The schedule for the principal capital expenditures for property maintenance construction, etc., as of the end of theReporting Period for the real estate-related assets owned by INV is as follows.
Estimated cost (JPY thousand)Name of property

Location

PurposeScheduled time of
implementation

Payment for
Advancethe Reporting
payments
PeriodD21

APA Hotel
Yokohama-Kannai

Yokohama-shi, Air-conditioner's
outdoor units work
Kanagawa

From January 2022
To June 2022

125,000--

D48

Takamatsu Tokyu
REI Hotel

Takamatsu-shi, Water tankrenovation work
KagawaFrom January 2022
To June 2022

69,950--50,000--36,500--32,630--

Restaurant renovation From January 2022
work
To June 2022
Groundwater
Asahikawa-shi,
From January 2022
purification facility
D73 Art Hotel Asahikawa
Hokkaido
To June 2022
renovation work
D44 Hotel Epinard Nasu

A45

2

Total

Wacore TsunashimaINasu-gun,Tochigi

Yokohama-shi, Exterior wallrenovation work
Kanagawa

From January 2022
To June 2022

Capital Expenditures for the Reporting Period
The principal construction work constituting capital expenditures for the real estate assets for the Reporting Period is asfollows. Capital expenditures for the Reporting Period totaled JPY 486,798 thousand, and together with JPY 22,561
thousand in repair costs included in this fiscal period’s expenses, construction work totaling JPY 509,360 thousand was
implemented.
Name of property

Location

PurposeTime of implementation

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

Grand Cayman,
CaymanRenovation work
Islands

From July 2021
To December 2021

19,893

A30 Emerald House

Itabashi-ku,
TokyoIntercom renovation work

From July 2021
To December 2021

10,120

D73 Art Hotel Asahikawa

Asahikawa-shi, Emergency announcement
Hokkaido
facility renovation work

From July 2021
To December 2021

9,727

Hotel MyStays
Premier Dojima

Osaka-shi,
Osaka

Air conditioning facility
renovation work

From July 2021
To December 2021

8,500

D44 Hotel Epinard Nasu

Nasu-gun,Tochigi

Firefighting facility
renovation work

From July 2021
To December 2021

7,800

D06

430,758

Other construction

486,798

Total- 49 -

3

Reserved Funds for Long-Term Maintenance Plan (repair reserves)

INV has reserved funds from the cash flow of the fiscal period, as shown below, towards large-scale
maintenance repairs in the medium- to long-term in accordance with the long-term maintenance plan for each
property.

Fiscal period

Reserved funds at beginningof period
Amount reserved(Note)
Amount reversed(Note)
Amount carried over for
next fiscal period(Unit: JPY thousand)
33rd
34th
35th
36th
37th
fiscal period
fiscal period
fiscal period
fiscal period
fiscal period
From July 1, 2019 From January 1, From July 1, 2020 From January 1, From July 1, 2021
to December 31, 2020 to June 30, to December 31, 2021 to June 30, to December 31,
2019
2020
2020
2021
2021
2,039,622

2,543,226

5,485,363

2,610,671

2,749,724

1,621,422

3,908,773

565,299546,287645,507

1,117,818

966,6363,439,991

407,235

603,652

2,543,226

5,485,363

2,610,671

2,749,724

2,791,578(Note) The amount reserved for the relevant fiscal period includes the reserves for acquired properties, and the amountreversed includes the reserves for sold properties.

- 50 -

Overview of Expenses and Liabilities
1

Statement of Operating Expenses
36th fiscal period
January 1, 2021 to June 30, 2021
300,000
25,20349,0874,800
162,956
542,048

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

2(JPY thousand)37th fiscal period
July 1, 2021 to December 31, 2021
300,000
24,73254,7204,800
242,924
627,177

Borrowing Conditions

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

LenderBalance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Mizuho Bank, Ltd.

5,992,000-

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

6,660,000-

4,442,000-

2,670,000-

3,000,000-

3,330,000-

1,335,000-

666,000-

0.335

3,000,000

-

0.335

328,500-

355,000-

355,000-

334,000-

167,000-

328,500-

3,400,000

3,400,000

0.335

850,000

850,000

0.335

1,215,500

1,215,500

199,000

199,000

447,500

447,500

25,00025,000525,000

525,000

270,000

270,000

375,000

375,000

Jul. 16,
2020

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

Jul. 20,
2020
Sep. 14,2020

Oct. 13,2020

Jan. 22,2021
Jan. 22,2021

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
The Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.

Mar. 30,
2021- 51 -

0.335

0.335

0.335

Jul. 16,2021

Jul. 20,
2021
Sep. 14,2021

Oct. 13,2021

Jan. 22,2022
Jan. 22,2022

Mar. 30,2022(Note 3)(Note 2)

(Note 3)(Note 2)

(Note 3)(Note 2)

(Note 3)(Note 2)

(Note 3)

Unsecured /with noguarantee

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

Notes

Unsecured /with noguarantee

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

Unsecured /with noguarantee

Type

LenderBalance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Mizuho Bank, Ltd.

902,000

902,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
Citibank, N.A., Tokyo
Branch692,000

692,000

681,000

681,000

617,000

617,000

147,000

147,000

349,000

349,000

0.335

570,000-

0.325

Mizuho Bank, Ltd.

-5,992,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchShinsei Bank, Limited-

6,660,000-

4,442,000-

2,670,000-

3,000,000-

3,330,000

Resona Bank, Limited-

1,335,000

Mizuho Bank, Ltd.

-2,442,000-

2,220,000-

1,998,000-

890,000-

1,000,000-

1,110,000-

666,000-

766,000-

467,000-

766,000-

120,000-

150,000-

3,000,000

Mizuho Bank, Ltd.

-2,521,500

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

2,133,000-

2,521,500-

1,000,000-

684,000-

500,000-

137,000-

328,500-

328,500-

560,000-

667,000-

320,000-

150,000

Resona Bank, Limited

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchShort-term Shinsei Bank, Limited
loans
Development Bank ofJapan, Inc.

Mar. 30,
2021

Jun. 15,2021
Jun. 30,
2021

Jul. 16,2021

Jul. 19,2021

Jul. 20,2021

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Citibank, N.A., Tokyo
BranchShinsei Bank, Limited
Sumitomo Mitsui Banking
Corporation

Resona Bank, Limited
The Nomura Trust andBanking Co., Limited
The Bank of Fukuoka, Ltd.

Aug. 2,
2021

Sep. 14,2021

Sep. 27,2021

Oct. 13,2021- 52 -

0.335

Mar. 30,
2022

Jun. 15,2022
Dec. 30,2021(Note 3)(Note 2)

(Note 3)(Note 2)

(Note 3)

Notes

Unsecured /with noguarantee

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

0.335Jul. 16,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.335Jul. 16,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.335Jul. 16,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.335Jul. 16,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.335

Sep. 14,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.335

Sep. 27,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.335

Sep. 27,2022(Note 3)(Note 2)

Unsecured /with noguarantee

Type

Balance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)LenderMizuho Bank, Ltd.

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

190,000-

146,000-

143,000-

130,000-

30,000-1,256,000

0.335

-

4,321,000

0.335

44,228,000

71,786,000

1,582,000-

Mizuho Bank, Ltd.

1,733,000

1,733,000

Resona Bank, Limited

333,000

333,000

The Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
AEON Bank, Ltd.

333,000

333,000

333,000

333,000

900,000

900,000

The Towa Bank, Ltd.

253,000

253,000

The Shizuoka Bank, Ltd.
The Daiichi Life InsuranceCo., Ltd.
The Gunma Bank, Ltd.

200,000

200,000

500,000

500,000

165,000

165,000

Mizuho Bank, Ltd.
The Daiichi Life InsuranceCo., Ltd.
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchResona Bank, Limited

4,321,000-

2,843,000-

355,000-

355,000-

333,000-

300,000-

190,000-

167,000-

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Short-term Bank, Limited
loans
Development Bank ofJapan, Inc.
Citibank, N.A., Tokyo
BranchMizuho Bank, Ltd.

Oct. 13,2021

Oct. 13,2021
Nov. 29,
2021

Subtotal
Tokyo Star Bank, Limited

Long-term
The Bank of Fukuoka, Ltd.
loans
（Note 4） AEON Bank, Ltd.

Jul. 20,
2016

Mar. 14,2017

May 29,2017

Oct. 13,2017

The Nomura Trust andBanking Co., Limited
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Banking
Corporation
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchResona Bank, Limited
Development Bank ofJapan, Inc.
The Bank of Fukuoka, Ltd.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., Limited
The Hiroshima Bank, Ltd.
The Daiichi Life InsuranceCo., Ltd.

Oct. 13,2017

167,000-

500,000

500,000

500,000

500,000

500,000

500,000

355,000

355,000

355,000

355,000

333,000

333,000

1,500,000

1,500,000

300,000

300,000

190,000

190,000

166,000

166,000

166,000

166,000

500,000

500,000- 53 -

0.335

Sep. 27,
2022

Sep. 27,2022
Nov. 29,2022(Note 3)(Note 2)

(Note 3)(Note 2)

(Note 3)

Notes

Unsecured /with noguarantee

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

0.685Jul. 20,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.685

Mar. 14,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.625

Nov. 29,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.485

Oct. 13,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.685

Oct. 13,2022(Note 3)(Note 2)

Unsecured /with noguarantee

Type

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

Balance atBalance at
Borrowing beginning of end of Reporting
Reporting Period
Perioddate(JPY thousand) (JPY thousand)
1,250,000

1,250,000

1,065,000

1,065,000

1,250,000

1,250,000

1,250,000

1,250,000

1,060,000

1,060,000

1,250,000

1,250,000

1,000,000

1,000,000

500,000

500,000

Mizuho Bank, Ltd.

2,442,000-

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

2,220,000-

1,998,000-

MUFG Bank, Ltd.

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

Oct. 13,2017

Oct. 13,2017

Jun. 27,
2018

Jul. 17,
2018

Jul. 17,
2018

Jul. 17,
2018

Aug. 2,
2018

1,110,000-

1,000,000-

890,000-

2,443,000

2,443,000

2,220,000

2,220,000

1,997,000

1,997,000

1,110,000

1,110,000

1,000,000

1,000,000

890,000

890,000

2,442,000

2,442,000

2,220,000

2,220,000

1,997,000

1,997,000

1,110,000

1,110,000

1,000,000

1,000,000

890,000

890,000

766,000-

766,000-

467,000-

150,000-

120,000-

30,000-60,000-- 54 -

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

Notes

0.785

Oct. 13,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.885

Oct. 11,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.750

Jun. 27,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.385Jul. 17,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.485

Jul. 17,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.585Jul. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.385

Aug. 2,2021(Note 3)(Note 2)

Unsecured /with noguarantee

Type

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

Balance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)Sep. 26,
2018

Sep. 26,2018

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

Sep. 26,
2018

Jan. 22,2019

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

Mar. 29,2019

2,521,500-

2,521,500-

2,133,000-

1,000,000-

684,000-

546,000-

500,000-

445,000-

137,000-

273,000-

3,287,000

3,287,000

3,287,000

3,287,000

2,600,000

2,600,000

1,000,000

1,000,000

833,000

833,000

667,000

667,000

500,000

500,000

445,000

445,000

167,000

167,000

334,000

334,000

3,287,500

3,287,500

3,287,500

3,287,500

2,600,000

2,600,000

1,000,000

1,000,000

833,000

833,000

667,000

667,000

500,000

500,000

445,000

445,000

166,000

166,000

333,000

333,000

850,000

850,000

3,400,000

3,400,000

386,000

386,000

1,275,000

1,275,000

2,100,000

2,100,000

500,000

500,000

500,000

500,000

1,000,000

1,000,000

333,000

333,000

1,270,000

1,270,000

270,000

270,000

288,000

288,000- 55 -

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

Notes

0.385

Sep. 26,
2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.485

Sep. 26,
2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.585

Sep. 26,
2023(Note 3)(Note 2)

0.373

Jan. 22,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.361

Mar. 29,2022(Note 3)(Note 2)

Unsecured /with noguarantee

Unsecured /with noguarantee

Type

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

Balance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)Averageinterest
Repayment Repayment
rate
date
method(%)(Note 1)

PurposeNotesMar. 29,2024(Note 3)(Note 2)

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

1,000,000

1,000,000

921,000

921,000

480,000

480,000

961,000

961,000

0.885

1,000,000

1,000,000

0.340

1,000,000

1,000,000

0.334

571,400

571,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

Resona Bank, Limited

600,000

600,000

Mizuho Bank, Ltd.

571,400

571,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

Kiraboshi Bank, Ltd.
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.

Mar. 29,2019
Mar. 29,2019
Jun. 17,2019
Jun. 28,
2019

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

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Long-term Citibank, N.A., Tokyo
loans
Branch（Note 4）
Shinsei Bank, Limited

Jul. 16,
2019

Jul. 16,
2019

Resona Bank, Limited

600,000

600,000

Mizuho Bank, Ltd.

1,171,400

1,171,400

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

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

Jul. 16,2019

200,000

200,000

2,171,400

2,171,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

200,000

200,000

Mizuho Bank, Ltd.

2,170,400

2,170,400

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

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

200,000

200,000

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

Jul. 16,
2019

Jul. 16,2019- 56 -

0.594

Mar. 29,2029
Jun. 17,2022
Jun. 17,2022(Note 3)(Note 3)

Unsecured /with noguarantee
Unsecured /with no(Note 2)
guarantee
Unsecured /with no(Note 2)
guarantee

0.400Jan. 16,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.499

Jan. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.563

Jul. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.635

Jan. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.785Jul. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

Type

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

Average
Balance atBalance at
Borrowing beginning of end of Reporting interest
Repayment Repayment Purpose
rate
date
Reporting Period
Perioddatemethod(%)(JPY thousand) (JPY thousand) (Note1)
1,085,000
1,085,000

Jul. 19,2019

Jul. 19,2019

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

Jul. 19,2019

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

Jul. 19,2019

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

Jul. 19,2019

987,000

987,000

987,000

987,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

712,000

712,000

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

237,000

237,000

712,000

712,000

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

1,212,000

1,212,000

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

1,211,000

1,211,000

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000- 57 -

Notes

0.413

Jan. 16,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.525

Jan. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.580Jul. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.635

Jan. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.785Jul. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

Type

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

Average
Balance atBalance at
Borrowing beginning of end of Reporting interest
Repayment Repayment Purpose
rate
Notes
date
Reporting Period
Perioddatemethod(%)(JPY thousand) (JPY thousand)(Note 1)
Unsecured /Jul. 22,
Jul. 16,700,000
700,000
0.785(Note 3) (Note 2) with no
2019
2025
guarantee
Unsecured/
2,882,000
2,882,000
Aug. 28,16,0.462 Jan.
(Note 3) (Note 2) with no
2019
2024
662,000
662,000
guarantee
Unsecured /Oct. 15,15,
1,700,000
1,700,000
0.486 Apr.
(Note 3) (Note 2) with no
2019
2024
guarantee
Unsecured /Oct. 15,Apr.
15,1,000,000
1,000,000
0.635(Note 3) (Note 2) with no
2019
2025
guarantee
Unsecured /Oct. 15,
Oct. 15,
1,000,000
1,000,000
0.785
(Note
3)
(Note
2)
with no2019
2025
guarantee
Unsecured /Jan. 6,
Jan. 6,1,550,000
1,550,000
0.417(Note 3) (Note 2) with no
2020
2023
guarantee
3,050,000

3,050,000

961,000

961,000

The Kiyo Bank

480,000

480,000

Mizuho Bank, Ltd.

634,000

634,000

Resona Bank, Limited
Development Bank ofJapan, Inc.
The Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.

Long-termloans
The Yamaguchi Bank, Ltd.
(Note 4)
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
The Bank of Fukuoka, Ltd.

Jan. 6,2020

Mar. 16,
2020

Mar. 30,2020

300,000

300,000

1,000,000

1,000,000

333,000

333,000

333,000

333,000

200,000

200,000

411,000

411,000

850,000

850,000

1,090,000

1,090,000

333,000

333,000

Mizuho Bank, Ltd.

582,000

582,000

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited

628,000

628,000

1,090,000

1,090,000

570,000

570,000

500,000

500,000

270,000

270,000

Resona Bank, Limited
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Mar. 30,2020

1,000,000

1,000,000

The Shizuoka Bank, Ltd.

270,000

270,000

The Kagawa Bank, Ltd.

500,000

500,000

The Yamaguchi Bank, Ltd.

550,000

550,000

The Chukyo Bank, Ltd.

961,000

961,000

0.643

Jan. 6,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.487

Mar. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.385

Mar. 16,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.585

Mar. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee(Note 2)

Citibank, N.A., Tokyo
BranchJun. 15,2020

1,000,000

1,000,000

0.335

Jun. 17,2022(Note 3)

Tokyo Star Bank, Limited

Jul. 20,2020

600,000

600,000

0.335

Jul. 20,2022(Note 3)

Tokyo Star Bank, Limited

Jul. 20,2021-

1,582,000

0.435

Jul. 20,2024(Note 3)

Subtotal

196,770,000

164,959,000

Total

240,998,000

236,745,000

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee(Note 1) Average interest rate shows the interest rate for each loan agreement as of the end of the fiscal period, rounded to three decimal places. In
regards to borrowings which interest rate swap transactions are entered into for the purpose of avoiding risk from interest rate fluctuation,interest rates reflecting the interest rate swap are shown. In regards to borrowings repaid during the Reporting Period, the interest rate foreach loan agreement as of the repayment date rounded to three decimal places is shown.
(Note 2) The funds raised through borrowings are mainly used to acquire trust beneficiary interests in real estate and to repay the borrowings.
(Note 3) The balance at the end of the period will be repaid in full on the repayment date.
(Note 4) Long-term loans includes current portion of long-term loans payable.

- 58 -

3

Investment Corporation Bonds
Status of investment corporation bonds as of the end of the Reporting Period is as follows.
Bond SeriesFirst Series
Unsecured Investment
Corporation Bonds(Note 1)
Second Series
Unsecured Investment
Corporation Bonds(Note 1)
Third Series
Unsecured Investment
Corporation Bonds(Note 1)Forth Series
Unsecured Investment
Corporation Bonds(Note 1)Fifth Series
Unsecured Investment
Corporation Bonds(Note 1)
Sixth Series
Unsecured Investment
Corporation Bonds(Note 1)

Issue Date

Balance at theBalance at the Interest Rate
beginning of the
Redemption Use of
end of the period
Redemption Date(%)
periodmethodfunds(JPY thousand)(JPY thousand)May 25, 2018

1,000,000

1,000,000

0.400

May 25, 2023

(Note 2)

(Note 3)

May 25, 2018

1,000,000

1,000,000

0.800

May 25, 2028

(Note 2)

(Note 3)October 12, 2018

2,000,000

2,000,000

0.550 October 12, 2023

(Note 2)

(Note 4)

Security/
Guaranty

Unsecured /Unguaranteed
October 28, 2019

1,000,000

1,000,000

0.480 October 28, 2024

(Note 2)

(Note 5)October 28, 2019

2,000,000

2,000,000

0.900 October 26, 2029

(Note 2)

(Note 5)

March 13, 2020

1,200,000

1,200,000

0.850 March 13, 2030

(Note 2)

(Note 4)

Total
8,200,000
8,200,000－－－－－(Note 1) This is with pari passu conditions among specified corporate bonds.
(Note 2) The Investment Corporation Bonds may be purchased and cancelled at any time after the payment date, except for the case where the laws
and regulations or the depository otherwise stipulates.
(Note 3) The funds will be used to acquire trust beneficiary interest in real estate.
(Note 4) The funds will be used to repay borrowings.
(Note 5) The funds will be used in strategic capital expenditure.

4

Short-Term Investment Corporation Bonds

Not applicable
5

Investment Unit Options

Not applicable- 59 -

Acquisitions and Sales for the Reporting Period

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

Type of asset

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

Name of property

Sale

Acquisition
Acquisition
price
date
(JPY
million)

Sales date

Gain/loss on
Sales priceBook value
sales(JPY million)(JPY million) (JPY million)(Note 1)
(Note 3)(Note 1)
(Note 2)
(Note 4)

A77

Invoice Shin-Kobe
Residence－－

December22, 2021

1,097

A78

Cosmo Court
Motomachi－－

December22, 2021

833

A85

Vendir Hamaotsu
Ekimae－－December22, 2021

478

－

－

December22, 2021

Winntage Kobe
Motomachi－－

December22, 2021

435

A91 Corp Higashinotoin－－

December22, 2021

390

A95

HERMITAGE
NANBA WEST－－

December22, 2021

310

B17

Lexington Plaza
Hachiman－－

July 2,
2021

3,660

2,982

590

－

－

9,810

6,996

2,568

A86 Salvo Sala
A89

Total

6,150

468

1,977

(Note 1) The sale prices of individual residential properties sold on December 22, 2021 are not disclosed as the transferees’ consent has not beenobtained for disclosure. Accordingly, the gain on sales of individual properties are not disclosed, either.
(Note 2) Sales price does not include various costs (brokerage commissions, taxes and other public dues) required for sale of the property, and is thesales price indicated in the trust beneficiary interest purchase agreement.
(Note 3) As of the date of each transaction.
(Note 4) Gain on sale is calculated by deducting the book value and the transfer related cost from the sales price for each of the properties.
(Note 5) Amounts are rounded down to the nearest million yen.

2

Acquisitions and Sales of Other Assets

Assets other than those described above were mostly bank deposits or bank deposits in trust.

- 60 -

3

Transaction Price Verification of Specified Assets

Acquisitionor saleName of property

Category of Transaction
specified asset
date

Sales price(JPY
million)(Note 1)

Appraisal
value
(JPY
million)Appraiser

Appraisal
dateReal estate
DecemberJapan Real Estate November 1,
Trust
1,550
beneficiary22, 2021
Institute2021
interest
Real estate
Cosmo Court
DecemberJapan Real Estate November 1,
Trust
Sale
A78
1,200
beneficiary22, 2021
Institute
2021
Motomachiinterest
Real estate
Vendir Hamaotsu
DecemberJapan Real Estate November 1,
Trust
Sale
A85
841
beneficiary22, 2021
Institute
2021
Ekimaeinterest
Real estate
DecemberJapan Real Estate November 1,
Trust
Sale
A86 Salvo Sala
6,150
697
beneficiary22, 2021
Institute2021
interest
Real estate
Winntage Kobe
DecemberJapan Real Estate November 1,
Trust
Sale
A89
666
beneficiary22, 2021
Institute
2021
Motomachiinterest
Real estate
DecemberJapan Real Estate November 1,
Trust
Sale
A91 Corp Higashinotoin
559
beneficiary22, 2021
Institute2021
interest
Real estate
HERMITAGE NANBA
DecemberJapan Real Estate November 1,
Trust
Sale
A95
489
beneficiary22, 2021
Institute
2021
WEST
interest
Real estate
JLL Morii
Lexington Plaza
July 2,June 30,
Trust
Sale
B17
3,660
3,660
Valuation &beneficiary
2021
2021
Hachiman
Advisory
K.K.
interest(Note 1) The sale prices of individual residential properties sold on December 22, 2021 are not disclosed as the transferees’ consent has not beenobtained for disclosure.
(Note 2) Sales price does not include various costs (brokerage commissions, taxes and other public dues) required for sale of the property, and is thesales price indicated in the trust beneficiary interest purchase agreement.
(Note 3) The real estate appraisal described above is conducted by applying “Section 3: appraisals concerning prices of real estate subject tosecuritization” of “Real Estate Appraisal Standard.”
Sale

4

A77

Invoice Shin-Kobe
Residence

Transactions with Interested Parties(1) Transactions
Not applicable(2) Commissions Paid
Not applicable
5

Transactions between CIM and Its Other Businesses

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

- 61 -

Financial Condition
1

Assets, Liabilities, Principal, and Profit and Loss

Please refer to “II. Balance Sheet,” “III. Statement of Income and Retained Earnings,” “IV. Statement of
Changes in Net Assets,” “V. Notes to Financial Statements” and “VI. Statement of Cash Distribution.”
2

Changes in the Calculation Method of Depreciation

Not applicable
3

Changes in the Evaluation Method of Real Estate and Infrastructure Assets, etc.

Not applicable4

Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company

Not applicable- 62 -

Other1
Notice(1) General Meeting of Unitholders
INV’s General Meeting of Unitholders was held on December 17, 2021.
The summary of the matters approved at the General Meeting of Unitholders are as follows.
AgendaSummary
1.

2.

Proposal No. 1

Partial Amendment to
Articles ofIncorporation3.

Proposal No. 2
Proposal No. 3
Proposal No. 4

Appointment of One (1)Executive Director
Appointment of One (1)Substitute Executive
Director
Appointment of Two (2)Supervisory Directors

Reflecting the amendments made to the methods of evaluating
market values of securities and interests in financial derivativetransactions pursuant to the publication of the AccountingStandard for Fair Value Measurement.
Aiming to reflect our unitholders’ intensions more directly
into certain resolution matters of the general unitholders
meeting (a) which resolution matters may have significant
effect on the management structure of INV and the interests ofour unitholders, and (b) the submission of conflicting
proposals for which resolution matters will be difficult to bemade due to the nature of such resolution matters, INV added
a new provision where the “Deemed Affirmative Vote”
stipulated in Article 93, Paragraph 1 of the Act on Investment
Trusts and Investment Corporations and in Article 25,
Paragraphs 1 and 2 of the existing Articles of Incorporation
are not applicable to such resolution matters.
With the consent of the asset management company, the asset
management fees for the period from January 2013 to
December 2021 had been reduced. INV has further obtained
the consent of the Asset Management Company to reduce theamount of asset management fees for the period from January2022 to December 2022 to an amount which is lower than theamount that would be applicable if such reduction were notmade, and which is at the same level as the amount applied forthe period from January 2021 to December 2021.
Accordingly, INV amended the standards concerning theamount and payment of the asset management fees for theperiod from January 2022 to December 2022., effective
January 1, 2022.

Naoki Fukuda was appointed.
Naoto Ichiki was appointed.
Yoshihiro Tamura and Hiroyuki Fujimoto were appointed.

- 63 -

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

2

Item

Summary

September 10,
2021

Conclusion of MOU toamend the MLPM
Agreements with MHM
Group

On September 10, 2021, INV entered into a MOU to amend respective
MLPM Agreements for domestic hotels owned by INV and operated by
INV's main tenant, MHM Group. Pursuant to the MOU, we havepartially changed the rent payment conditions and changed the fixed
rent payment amount, the variable rent calculation method, rent
payment method and payment date.

December 8,
2021

Conclusion of MOU toamend the MLPM
Agreements with MHM
Group

On December 8, 2021, INV entered into a MOU to amend respective
MLPM Agreements for domestic hotels owned by INV and operated by
INV's main tenant, MHM Group. Pursuant to the MOU, we havepartially changed the rent payment conditions and changed the fixed
rent payment amount, the variable rent calculation method, rent
payment method and payment date.

Disclosure of Companies Owning Real Estate Overseas

Not applicable
3

Disclosure of Real Estate Owned by Companies Owning Real Estate Overseas

Not applicable
4

Other

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

- 64 -

II.

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

AssetsCurrent assets:
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Consumption taxes receivable
Other
Total current assets
Non-current assets:
Property and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings and accompanying facilities
Accumulated depreciation
Buildings and accompanying facilities, net
Structures, at cost
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Construction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Buildings and accompanying facilities in trust
Accumulated depreciation
Buildings and accompanying facilities in trust, net
Structures in trust, at cost
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property and equipment, net
Intangible assets
Leasehold rights
Leasehold rights in trust
Total intangible assets
Investment and other assets
Investment securities
Guarantee deposits
Long-term prepaid expenses
Derivatives assets
OthersTotal investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 65 -

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

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

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

19,406,379(931,763)
18,474,616
5,294,556(647,543)
4,647,013
1,458
(85)
1,373
1,187,082(233,535)
953,547
637,580
164,167,367(21,027,435)
143,139,931
33,384,159(10,817,809)
22,566,350
235,988(104,094)
131,8932,800,865(1,286,332)
1,514,532
245,560,970
437,627,809

19,428,985(1,150,408)
18,278,576
5,294,556(800,261)
4,494,295
1,458
(118)
1,340
1,191,356(292,045)
899,310690,038
160,525,440(22,562,657)
137,962,783
32,459,003(11,144,094)
21,314,908
206,135(100,953)
105,182
2,876,215(1,461,143)
1,415,071
242,197,743
427,359,252

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

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

17,856,387
1,362,721
494,637
16,216
22,667
19,752,630
482,554,746

17,856,387
1,372,719
379,42228,054
22,667
19,659,251
472,153,573

56,65256,652497,899,915

50,34950,349494,819,805

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

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

Liabilities
Current liabilities:
Accounts payable

917,331

774,133

Short-term loans payable

44,228,000

71,786,000

Current portion of long-term loans payable

53,315,000

48,667,000

Accounts payable-other

26,843

6,235

Accrued expenses

249,410

291,883

Income taxes payable
Consumption taxes payable
Advances received
Deposits received
Total current liabilities

605

605

-

540,868

597,790558,777

11,083

8,813

99,346,064

122,634,316

8,200,000

8,200,000

143,455,000

116,292,000

1,657,369

1,519,983

94,392

9,729

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

33,19733,422

Total non-current liabilities

153,439,959

126,055,134

252,786,023

248,689,451

235,701,512

235,701,512

6,264,432

6,264,432

Total liabilities
Net assets
Unitholders’ equity:
Unitholders’ capital
Surplus:Capital surplus
Deduction of unitholders' capital surplus
Allowance for temporary differences adjustment(6,130)(6,130)

Other deduction of capital surplus*2(5,524,006)(5,524,006)

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

734,294734,294

Capital surplus, net
Retained earnings

8,753,480

9,676,221

Total surplus

9,487,774

10,410,516

245,189,287

246,112,028

Deferred gains or losses on hedges(75,395)

18,325

Total valuation and translation adjustments(75,395)

18,325245,113,891

246,130,354

497,899,915

494,819,805

Total unitholders’ equity
Valuation and translation adjustments:

Total net assets*1

Total liabilities and net assets- 66 -

III.

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

Operating revenue
Rental revenue – real estate
Gain on sales of properties
Total operating revenue
Operating expenses
Property-related expenses
Management contract expenses
Asset management fees
Directors’ compensation
Asset custody fees
Administrative service fees
Other
Total operating expenses
Operating income (loss)
Non-operating income
Interest income
Interest on tax refund
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Loan-related costs
Loss of derivatives
Total non-operating expenses
Ordinary income (loss)
Income (loss) before income taxes
Income taxes
Total income taxes
Net income (loss)
Retained earnings (deficit) brought forward
Unappropriated retained earnings (deficit)

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)*1*33,806,176
3,806,176

5,837,847
2,568,486
8,406,334*1*2

4,720,815
884,731300,000
4,800
25,20349,087
162,956
6,147,595(2,341,419)

4,777,042
709,774
300,000
4,800
24,73254,720242,924
6,113,994
2,292,339

96
8,327
8,423

70
1,118
5,887
7,076

624,616
34,513
27,7696,200
508,348
64,6381,266,088(3,599,083)(3,599,083)
605
605(3,599,688)
12,353,168
8,753,480

602,398
40,71828,2306,303
596,446
10,5201,284,617
1,014,799
1,014,799
605
605
1,014,194
8,662,027
9,676,221- 67 -

IV.

Statement of Changes in Net Assets(Reference) Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Deduction of capital surplus

Unitholders’capitalAllowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

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

734,294

-

-

-

-

-

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

734,294

Capital surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus235,701,512

Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiod235,701,512

Unitholders’ equity
Surplus

Valuation and translation adjustments
Totalunitholders’equityDeferred
gains or losses
on hedges

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

Total
net assets

Retainedearnings(deficit)

Total
surplus13,371,340

14,105,635

249,807,147

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

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

Balance at the beginningof the period
Changes during theperiodChanges other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiod249,641,218

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

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

8,753,480

9,487,774

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

245,113,891- 68 -

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

Capital surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

235,701,512

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

734,294

－

－

－

－

－

－

235,701,512

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

734,294

Net income
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodUnitholders’ equity
SurplusRetainedearnings(deficit)
Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus
Net income
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodTotal
surplus

Valuation and translation adjustments
Totalunitholders’equityDeferred
gains or losses
on hedges(75,395)

Total
valuation andtranslation
adjustments(75,395)

Total
net assets

8,753,480

9,487,774

245,189,287

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

1,014,194

1,014,194

1,014,194

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

922,741

922,741

93,72093,7201,016,462

9,676,221

10,410,516

246,112,028

18,32518,325

246,130,354- 69 -

V.

Notes to Financial Statements[Notes Concerning Significant Accounting Policies]
By Period(Reference)
Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

Item
1. Evaluation standards and (a) Other securities
evaluation method ofThose with no fair value
assetsCost method through moving-average method
is used.
(b) Claims generated and debt incurred throughderivative transactions
Market value method is used.

Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)(a) Investment in affiliates
Those with no fair value
Cost method through moving-average method
is used.
(b) Claims generated and debt incurred throughderivative transactions
Market value method is used.

2. Method of depreciationof non-current assets(a) Property and equipment(a) Property and equipment
The straight-line method is used.
The straight-line method is used.
The useful lives of major property, plant
The useful lives of major property, plantand equipment are as follows.
and equipment are as follows.
Buildings
16-50 years
Buildings
16-50 years
Buildings and accompanying facilities
Buildings and accompanying facilities
5-29 years
5-29 years
Structures
20 years
Structures
20 years
Tools, furniture and fixtures
3-18 years
Tools, furniture and fixtures
3-18 years
Buildings in trust
7-67 years
Buildings in trust
7-67 years
Buildings and accompanying facilities in
Buildings and accompanying facilities intrust
2-33 years
trust
3-33 years
Structures in trust
10-55 years
Structures in trust
10-55 years
Tools, furniture and fixtures in trust
Tools, furniture and fixtures in trust
2-20 years
2-20 years(b) Intangible assets(b) Intangible assets
For fixed-term land lease for business
For fixed-term land lease for businesspurposes in Japan, the straight-line method
purposes in Japan, the straight-line method
based on the lease period is used.
based on the lease period is used.
(c) Long-term prepaid expenses(c) Long-term prepaid expenses
The straight-line method is used.
The straight-line method is used.
3. Accounting treatment of Investment corporation bond issuance costs
Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs
Investment corporation bond issuance costs
are amortized using the straight-line method
are amortized using the straight-line method
over a period up to redemption of theover a period up to redemption of theinvestment corporation bonds.
investment corporation bonds.
4. Method of calculatingallowances

5. Conversion of assets andliabilities in foreign
currency into Japaneseyen
6. Revenue and expense
recognition

Allowance for doubtful accounts
To reserve for losses on doubtful accounts,
allowances are provided for normal receivables
using a rate determined based on past bad debt
experiences, and specific allowances areprovided for accounts with a possibility ofdefault based on the estimated amounts
considered to be uncollectible by considering
the collectability of accounts on an individual
basis.
Receivables and payables denominated inforeign currencies are translated into yen at the
spot exchange rate at the end of the fiscal period
date, and differences arising from thetranslation are treated as a profit or loss.
Accounting treatment of property taxes andother taxes
With respect to property taxes, city planningtaxes and depreciable asset taxes, of the tax- 70 -

Allowance for doubtful accounts
To reserve for losses on doubtful accounts,
allowances are provided for normal receivables
using a rate determined based on past bad debt
experiences, and specific allowances areprovided for accounts with a possibility ofdefault based on the estimated amounts
considered to be uncollectible by considering
the collectability of accounts on an individual
basis.
Receivables and payables denominated inforeign currencies are translated into yen at the
spot exchange rate at the end of the fiscal period
date, and differences arising from thetranslation are treated as a profit or loss.
(a) Accounting treatment of property taxes
and other taxes
With respect to property taxes, city planningtaxes and depreciable asset taxes, of the tax

By Period
Item

7. Method of hedge
accounting

8. Other significant
matters whichconstitute the basis for
preparation of financial
statements(Reference)
Fiscal period ended December 31, 2021
Fiscal period ended June 30, 2021
(from July 1, 2021 to December 31, 2021)(from January 1, 2021 to June 30, 2021)
amount assessed and determined, the amountamount assessed and determined, the amountcorresponding to the relevant fiscal period iscorresponding to the relevant fiscal period is
accounted for as property related expenses.
accounted for as property related expenses.
Of the amounts paid to the seller for
Of the amounts paid to the seller for
acquisitions of real estate, the amountacquisitions of real estate, the amountequivalent to property taxes is capitalized as
equivalent to property taxes is capitalized aspart of the acquisition cost of the real estatepart of the acquisition cost of the real estate
instead of being charged as expense. The
instead of being charged as expense. The
amount equivalent to property taxes that wasamount equivalent to property taxes that was
included as part of the acquisition cost of realincluded as part of the acquisition cost of realestate during the fiscal period ended June 30,
estate during the Reporting Period is zero.
2021 is zero.
(b) Recognition of revenue
The following is the content of principal
performance obligations related to revenue
from contracts with INV’s customers and thenormal timing for the satisfaction of suchobligations (normal timing for revenue
recognition).
Sale of real estate, etc.
For the sale of real estate, etc., revenue will
be recognized at the time the control of such
real estate, etc. is obtained by the purchaser,
who is the customer, as the transfer
obligation will be fulfilled pursuant to thecontract pertaining to the sale of real estate.
(a) Method of hedge accounting(a) Method of hedge accounting
Deferred hedge accounting is used.
Deferred hedge accounting is used.
(b) Hedging instrument and hedged item(b) Hedging instrument and hedged item
Hedging instrument: interest rate swap
Hedging instrument: interest rate swap
Hedged item: interest on borrowings
Hedged item: interest on borrowings(c) Hedge policy(c) Hedge policy
INV enters into derivatives transactions for
INV enters into derivatives transactions forthe purpose of hedging against the risks set
the purpose of hedging against the risks set
forth in INV’s Articles of Incorporation inforth in INV’s Articles of Incorporation inaccordance with its risk management
accordance with its risk management
policy.
policy.
(d) Method of evaluating hedge effectiveness(d) Method of evaluating hedge effectivenessHedge effectiveness is evaluated byHedge effectiveness is evaluated bycomparing the cumulative amount ofcomparing the cumulative amount ofchanges in cash flows of the hedging
changes in cash flows of the hedging
instrument and the cumulative amount of
instrument and the cumulative amount ofchanges in cash flows of the hedged itemchanges in cash flows of the hedged item
and verifying the difference in the amounts
and verifying the difference in the amountsof change of both the hedged item and theof change of both the hedged item and thehedging instrument.
hedging instrument.
(1) Accounting treatment policy of trust(1) Accounting treatment policy of trust
beneficiary interests in real estate
beneficiary interests in real estate
As to trust beneficiary interests in real
As to trust beneficiary interests in realestate, all accounts of assets and liabilities
estate, all accounts of assets and liabilities
within assets in trust, as well as all income
within assets in trust, as well as all income
generated and expenses incurred fromgenerated and expenses incurred fromassets in trust, are recorded in the relevant
assets in trust, are recorded in the relevantbalance sheets and income statementbalance sheets and income statement
accounts. Of such items, the following
accounts. Of such items, the following
significant trust assets and liabilities are
significant trust assets and liabilities areshown separately on the balance sheet.
shown separately on the balance sheet.
(a) Cash and bank deposits in trust(a) Cash and bank deposits in trust(b) Buildings in trust(b) Buildings in trust
Buildings and accompanying facilities
Buildings and accompanying facilities
in trust
in trust- 71 -

By Period
Item(Reference)
Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
Structures in trust
Tools, furniture and fixtures in trust
Land in trust(c) Leasehold rights in trust(d) Tenant leasehold and security deposits
in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes
are recorded at amounts exclusive ofconsumption taxes.

- 72 -

Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)
Structures in trust
Tools, furniture and fixtures in trust
Land in trust(c) Leasehold rights in trust(d) Tenant leasehold and security deposits
in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes
are recorded at amounts exclusive ofconsumption taxes.

[Notes on Changes in Presentation Methods](Reference) Fiscal period ended June 30, 2021
Fiscal period ended December 31, 2021
(from January 1, 2021 to June 30, 2021)(from July 1, 2021 to December 31, 2021)
Changes due to the application of “Accounting Standard for Not applicable
Disclosure of Accounting Estimates”“Accounting Standard for Disclosure of Accounting
Estimates” (Corporate Accounting Standards No. 31, March
31, 2020) has been applied from the fiscal period ended June30, 2021, and [Notes on Material Accounting Estimates] aredescribed in the Notes to Financial Statements.

[Notes on Material Accounting Estimates](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
1. Valuation of non-current assets(1) Amount recorded in the financial statements for the fiscal
period ended June 30, 2021
(JPY million)
Impairment loss

Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)
1. Valuation of non-current assets(1) Amount recorded in the financial statements for theReporting Period(JPY million)
Impairment loss

Non-current assets
462,164(Rental properties)
Although no impairment loss was recorded in the fiscal
period ended June 30, 2021, we recognize it as a disclosure
item in view of the risk of having a significant impact on
the financial statements for the next fiscal period.

Non-current assets
451,804(Rental properties)
Although no impairment loss was recorded in the Reporting
Period, we recognize it as a disclosure item in view of therisk of having a significant impact on the financial
statements for the next fiscal period.

(2) Information about the content of material accounting
estimates for the identified item
We determine whether or not there are any signs of possible
impairment pertaining to rental properties owned by INV.
If there are any signs, we determine whether or not INV
should recognize the impairment loss. No impairment
loss was recognized for INV’s rental properties, since future
cash flows before discounting exceed the book value ofrental properties.
In estimating future cash flows, it is assumed that theadverse effect by the spread of COVID-19 infections willcontinue during the fiscal period ended December 2021, but
the pandemic will be gradually contained and the businessenvironment will recover in 2022 onwards. However, it isdifficult to accurately predict when the spread of COVID19 infections will be contained and how much the impact
will be. Changes in the infection status may affect theabove estimates and INV may incur impairment losses.

(2) Information about the content of material accounting
estimates for the identified item
We determine whether or not there are any signs of possible
impairment pertaining to rental properties owned by INV.
If there are any signs, we determine whether or not INV
should recognize the impairment loss. No impairment
loss was recognized for INV’s rental properties, since future
cash flows before discounting exceed the book value ofrental properties.
In estimating future cash flows, it is assumed that theadverse effect by the spread of COVID-19 infections willcontinue in 2022, but the pandemic will be graduallycontained and the business environment will recover in
2023 onwards. However, it is difficult to accurately
predict when the spread of COVID-19 infections will becontained and how much the impact will be. Changes in
the infection status may affect the above estimates and INV
may incur impairment losses.

- 73 -

[Notes to Changes in Accounting Policies](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
Not applicable

Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)
Application of Accounting Standard for Revenue Recognition,etc.
INV has applied the “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020) andrelevant ASBJ regulations effective from the beginning of theReporting Period, and it has recognized revenue at the time thecontrol of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchangeof said goods or services. This change has no impact on thefinancial statements of the Reporting Period.
Application of Accounting Standard for Fair Value
Measurement, etc.
INV has applied the “Accounting Standard for Fair Value
Measurement” (ASBJ Statement No. 30, July 4, 2019) andrelevant ASBJ regulations from the beginning of the Reporting
Period, and it has applied the new accounting policy provided
for by the Accounting Standard for Fair Value Measurement,
etc. prospectively in accordance with the transitional measuresprovided for in paragraph 19 of the Accounting Standard for
Fair Value Measurement, and paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). This change has no impact
on the financial statements of the Reporting Period.

- 74 -

[Notes to the Balance Sheet](Reference) Fiscal period ended June 30, 2021
Fiscal period ended December 31, 2021
(from January 1, 2021 to June 30, 2021)(from July 1, 2021 to December 31, 2021)*1. Minimum net assets as required by Article 67, Paragraph *1. Minimum net assets as required by Article 67, Paragraph
4 of the Act on Investment Trusts and Investment
4 of the Act on Investment Trusts and Investment
Corporations
Corporations
JPY 50,000 thousand
JPY 50,000 thousand*2. Allowance for temporary differences adjustment(Reference) Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
1. Reasons, related assets and amounts(Unit: JPY thousand)Relatedassets, etc.

ReasonLeaseholdrights intrust

Amortization ofleasehold rights

Initial amount

Total

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

ReasonLeaseholdrights intrust

Amortization ofleasehold rights

Total

Initial amount

Balance at the
beginning of
periodAllowance
set aside
duringperiodReversalduringperiodBalance at theend of period(131,332)(6,130)--(6,130)(131,332)(6,130)--(6,130)2. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.

- 75 -

[Notes to Statement of Income and Retained Earnings](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues

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

Rental revenue – real estate
3,599,611(Rent/common area charges) (Note)

206,564(Other revenues)

3,806,176

Total

B. Real estate rental expenses

B. Real estate rental expenses

Property-related expenses

Property-related expenses

201,380
5,837,847(Maintenance costs)

497,596(Maintenance costs)

465,075(Taxes and public dues)

603,133(Taxes and public dues)

753,548(Insurance expenses)

19,012(Insurance expenses)

20,256(Depreciation expenses)

3,460,619(Depreciation expenses)

3,420,925(Other expenses)
Total

140,454(A-B)(Note) Of which, revenue from variable
hotel rents

Total

117,236
4,777,042

C. Real estate rental income(914,639)
37,496*2. Management contract revenue and expenses(Unit: JPY thousand)Hotel operating revenue
Hotel operating expenses
Management contract revenue (A-B)
Management contract expenses
Management contract losses (A-B)(Note)
Non-life insurance expenses
Depreciation expenses
Other expenses
Total(Other expenses)

4,720,815

C. Real estate rental income

A.
B.
C.
D.

5,636,467

388,076
740,915-(A-B)(Note) Of which, revenue from variable
hotel rents

A.
B.
C.
D.

101,793429,164934
884,731

Management contract revenue and(884,731)
expenses (C-D)(Note) If hotel operating expenses exceed hotel operating
revenue, the excess amount is recorded as
management contract losses.

- 76 -

1,280,015*2. Management contract revenue and expenses(Unit: JPY thousand)

352,838E.

1,060,805

E.

Hotel operating revenue
Hotel operating expenses
Management contract revenue (A-B)
Management contract expenses
Management contract losses (A-B)(Note)
Non-life insurance expenses
Depreciation expenses
Other expenses
Total

819,087995,357
176,269
103,910429,594
709,774

Management contract revenue and(709,774)
expenses (C-D)(Note) If hotel operating expenses exceed hotel operating
revenue, the excess amount is recorded as
management contract losses.

*3. Gain on sales of properties
Not applicable*3. Gain on sales of properties(Unit: JPY thousand)Lexington Plaza Hachiman
Proceeds from sales of property

3,660,000

Cost of sales of property

2,982,382

Other expenses on sales of property

86,632Gain on sales of property

590,985

Invoice Shin-Kobe Residence, Cosmo Court Motomachi,
Vendir Hamaotsu Ekimae, Salvo Sala, Winntage Kobe
Motomachi, Corp Higashinotoin, and HERMITAGE NANBA
WEST (Note)
Proceeds from sales of properties

6,150,000

Cost of sales of properties

4,014,374

Other expenses on sales of properties
Gain on sales of properties

158,123
1,977,501(Note) The sale prices of individual properties are
not disclosed as the transferees’ consent has
not been obtained for disclosure.

[Notes to Statement of Changes in Net Assets](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

Total number of issuable investment units and number ofinvestment units issued and outstanding

Total number of issuable investment units and number ofinvestment units issued and outstanding

Total number of investment units authorized 10,000,000 units

Total number of investment units authorized 10,000,000 units

Total number of investment units issued andoutstanding

Total number of investment units issued andoutstanding

6,096,840 units- 77 -

6,096,840 units

[Notes Related to Tax Accounting](Reference) Fiscal period ended June 30, 2021
(as of June 30, 2021)

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

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

307,217

Buildings and other (merger)

186,136

Land (merger)

472,381Land (merger)

116,724

Loss carried forward (Note 1)

1,662,026

Loss carried forward (Note 1)

1,810,135

Asset retirement obligations

10,443

Asset retirement obligations

10,514

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

125,223

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

137,567

461,428
3,039,336(1,662,026)(1,377,309)(3,039,336)

457,4822,719,176(1,810,135)(909,041)(2,719,176)

Total- Total(Note 1) The amounts of tax loss carried forward and the (Note 1) The amounts of tax loss carried forward and thedeferred tax assets by carry-forward period are asdeferred tax assets by carry-forward period are as
follows.
follows.
(Unit: JPY thousand)(Unit: JPY thousand)Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsTax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue
withinone year

Due after
one to twoyears

Due after
two tothree years-

522,444

-

-

-

-

-

-

-

(522,444)--

Due after
four tofive years

Due after
five years

Total

-

1,139,582

1,662,026-(1,139,582)(1,662,026)

-

-

-

Due after
three tofour years
Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsTax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue
withinone year

Due after
one to twoyears

Due after
two tothree years

Due after
three tofour years

201,072

320,467--(201,072)(320,467)

-

-

-

-

-

-

Due after
four tofive years

Due after
five years

Total

-

1,288,595

1,810,135-(1,288,595)(1,810,135)

-

-

-

(a) Tax loss carried forward is multiplied by statutory tax rate. (a) Tax loss carried forward is multiplied by statutory tax rate.
(Note 2) Valuation allowance increased by JPY 1,132,271 (Note 2) Valuation allowance decreased by JPY 320,159
thousand mainly due to an increase in tax loss
thousand mainly due to sales of land and buildings.
carried forward.
2. Significant difference between statutory tax rate and the
2. Significant difference between statutory tax rate and theeffective tax rate
effective tax rate
Disclosure is omitted because INV recorded the loss Statutory tax rate
31.46%
before income taxes for the fiscal period ended June 30,
Changes in valuation allowance(31.46)%2021.
Others0.06%
Effective tax rate

- 78 -

0.06%

[Notes Related to Financial Instruments](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

1. Status of financial instruments

1. Status of financial instruments(1) Policy for financial instruments(1) Policy for financial instruments

INV principally conducts its operations throughinvestments in real estate and other specified assets to seek
to ensure stable income in the medium to long term.
The policy for raising funds is principally through issuing
new investment units, investment corporation bonds, orborrowing loans.
Derivative transactions are to be entered into for the
purpose of hedging against the risks of future interest rate
fluctuations, exchange rate fluctuations, etc. and not for
speculation.
Surplus funds are managed after carefully taking into
account safety, liquidity, the interest rate environment andfinancing.
(2) Nature and extent of risks arising from financial
instruments and risk management.

INV principally conducts its operations throughinvestments 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, investment corporation bonds, orborrowing loans.
Derivative transactions are to be entered into for the
purpose of hedging against the risks of future interest rate
fluctuations, exchange rate fluctuations, etc. and not for
speculation.
Surplus funds are managed after carefully taking into
account safety, liquidity, the interest rate environment andfinancing.
(2) Nature and extent of risks arising from financial
instruments and risk management.

The funds raised through borrowings and issuinginvestment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in realestate (including related acquisition costs) and for therefinancing of existing loans. Liquidity risks relating toloan are managed by the finance department of CIM by
preparing and updating plans for funds, and monitoring
the covenants set forth in loan agreements.
(3) Supplemental information regarding fair value, etc. forfinancial instruments.
The fair value of financial instruments is based on quoted
market prices if available. When quoted market prices
are not available, fair value is determined through areasonable estimate. Since certain assumptions, etc. areused in estimating the fair value, different assumptions,etc. may result in the variance of such value.

- 79 -

The funds raised through borrowings and issuinginvestment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in realestate (including related acquisition costs) and for therefinancing of existing loans. Liquidity risks relating toloan are managed by the finance department of CIM by
preparing and updating plans for funds, and monitoring
the covenants set forth in loan agreements.
(3) Supplemental information regarding fair value, etc. forfinancial instruments.
Since certain assumptions, etc. are used in estimating thefair value of financial instruments, different assumptions,etc. may result in the variance of such value.

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between value asof June 30, 2021 are as follows.
(Unit: JPY thousand)Book Value(1) Cash and bankdeposits(2) Cash and bankdeposits in trust
Total assets

Fair Value

Difference

6,311,545

6,311,545-

6,528,498

6,528,498-

12,840,044

12,840,044-(44,228,000)(44,228,000)-(53,315,000)(53,315,000)-(3) Short-term loans(4) Current portion of
long-term loans
payable(5) Investment
corporation bonds(6) Long-term loans(8,200,000)(7,556,240)

643,760(143,455,000)(143,455,000)-

Total liabilities(249,198,000)(248,554,240)

643,760(78,176)(78,176)-(7) Derivatives(*1) Items recorded in the Liabilities Section are shown inparenthesis.
(*2) Receivables and payables arising from derivativetransactions are recorded in net amounts, and if the total
net amount is a negative amount, such amount is shownin parenthesis.

- 80 -

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between value asof December 31, 2021 are as follows. “Cash and bankdeposits”, “Cash and bank deposits in trust” and “Short-termloans payable” are omitted because their fair values areclose to their book values since they are settled in cash andin a short period of time. Moreover, “Tenant leasehold andsecurity deposits in trust” is omitted because they are notmaterial.
(Unit: JPY thousand)Book Value(1) Investment
securities

Fair Value

Difference

17,856,387

17,320,018 (536,369)

17,856,387

17,320,018 (536,369)(48,667,000)(48,667,000)-(8,200,000)(7,657,040)

542,960

Total assets(2) Current portion of
long-term loans
payable(3) Investment
corporation bonds(4) Long-term loans(116,292,000)(116,292,000)-

Total liabilities(173,159,000)(172,616,040)

542,960

18,32518,325-(5) Derivatives(*1) Items recorded in the Liabilities Section are shown inparenthesis.
(*2) Receivables and payables arising from derivativetransactions are recorded in net amounts, and if the total
net amount is a negative amount, such amount is shownin parenthesis.

(Note 1) Methods to calculate fair value of financial(Note 1) Methods to calculate fair value of financial
instruments.
instruments.
(1) Cash and bank deposits (2) Cash and bank deposits in trust (1) Investment securities(3) Short-term loans
For preferred equity interest, the assets and liabilities of the
Due to the short maturities, the book value of these instruments investee are valued at fair value, and the equity equivalent inis deemed a reasonable approximation of the fair value, and the obtained net asset value is deemed as the fair value of thetherefore, the book value is used as the fair value.
preferred equity interest.
(4) Current portion of long-term loans payable (6) Long-termloansLong-term loans with floating interest rates reflecting changes
in market rates within a short-term period is stated at their bookvalue as their book value approximate their fair value.

(2) Current portion of long-term loans payable (4) Long-termloansLong-term loans with floating interest rates reflecting changes
in market rates within a short-term period is stated at their bookvalue as their book value approximate their fair value.

(5) Investment corporation bonds
Fair value is calculated using a method based on market price.

(3) Investment corporation bonds
Fair value is calculated using a method based on market price.

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

(5) Derivatives(a) Derivatives transactions to which hedge accounting is
not applied
Not applicable(Unit: JPY thousand)
Derivative

Contract amount, etc.
Amount due

Classification transaction

after

type, etc.

Fair value

Valuation(*1)

gains/losses

one year
Currency
optiontransaction
short
USD/Call(OptionOTC

fees)transaction

Currency

952,820-(23,788)-952,820-

39,407-(15,962)

7,825

13,181(26,226)

optiontransaction
long
USD/Put(Optionfees)(*1) Estimation method for fair value
Currency option:
Indicates fair values of option fees, etc. presented by
the correspondent financial institutions.

- 81 -

(b) Derivatives transactions to which hedge accounting isappliedThe contract amount as of the closing date under eachhedge-accounting method and the amount equivalent
to the notional principal prescribed in the contracts are
as shown below.

(b) Derivatives transactions to which hedge accounting isappliedThe contract amount as of the closing date under eachhedge-accounting method and the amount equivalent
to the notional principal prescribed in the contracts are
as shown below.

(Unit: JPY thousand)(Unit: JPY thousand)Contract amount, etc.
Method of Derivativehedge

transaction

accounting

type, etc.

Primary

Contract amount, etc.

(*1)
Amount due

hedged item

Fair value

after

(*2)

Method of Derivativehedge

transaction

accounting

type, etc.

(*1)

Primary

Amount due

hedged item

after

one yearaccounting
methodInterest rate

swap
Receivefloating(*2)

one yearInterest rate
Principle

Fair value

Principle
Borrowings

64,648,000

50,476,000(75,395)

accounting
methodrate/pay
fixed rate

swap
Receivefloating

Borrowings

64,648,000 50,476,000

18,325rate/pay
fixed rate(*1) The contract amount, etc. for interest rate swap are (*1) The contract amount, etc. for interest rate swap arestated based on a notional principal.
stated based on a notional principal.
(*2) Estimation method for fair value(*2) Estimation method for fair value
Interest rate swap:
Interest rate swap:
Estimated based on the price, etc. presented by the
Estimated based on the price, etc. presented by thecorrespondent financial institutions.
correspondent financial institutions.
(Note 2) Financial instruments for which fair value isextremely difficult to value.
Category
Tenant leasehold andsecurity deposits in trust
Investment securities(Unit: JPY thousand)Book value(Note 2) Repayment schedule of investment corporation
bonds, long-term loans payable and other interestbearing debts after the closing date of the fiscal
period(Unit: JPY thousand)

1,657,369
17,856,387

Tenant leasehold and security deposits in trust have noobservable market price, and it is impracticable to estimate
reasonably their future cash flows because the repayment
dates of those deposits and the timing of the lessee’s exitfrom the property are not certain. Thus, their fair value is
not disclosed.
Since quoted market prices are not available for investment
securities (preferred equity interest), fair value is deemed
extremely difficult to value. Thus, prices are not subject tothe disclosure of fair value.

- 82 -

Current portion of longterm loans payable
Investment corporationbonds
Long-term loans payable
Total

Due within
one year

Due after one Due after two
to two years to three years

48,667,000

-

-

-

3,000,000

1,000,000-

42,405,000

34,127,000

48,667,000

45,405,000

35,127,000

Due after three Due after four Due after five
to four years to five years
years
Current portion of longterm loans payable
Investment corporation
bonds

-

-

-

-

-

4,200,000

Long-term loans payable

38,799,000-

961,000

Total

38,799,000-

5,161,000

(Note 3) Remaining schedule of monetary claims after theclosing date of the fiscal period(Unit: JPY thousand)Due within
one year

Due after one Due after two
to two years to three years

Cash and bank deposits

6,311,545--

Cash and bank deposits intrust

6,528,498

-

-

Total

12,840,044--

Due after three Due after four Due after five
to four years to five years
years
Cash and bank deposits

-

-

-

Cash and bank deposits in
trust

-

-

-

Total

-

-

-

(Note 4) Repayment schedule of investment corporation
bonds, long-term loans payable and other interestbearing debts after the closing date of the fiscal
period(Unit: JPY thousand)Due within Due after one to Due after two
one year
two years to three years
Short-term loans
Current portion of longterm loans payable
Investment corporationbonds
Long-term loans payable
Total

44,228,000--

53,315,000

-

-

-

1,000,000

2,000,000-

44,807,000

44,589,000

97,543,000

45,807,000

46,589,000

Due after three Due after four Due after five
to four years to five years
years
-

-

-

-

-

-

1,000,000-

4,200,000

Long-term loans payable

40,661,000

12,437,000

961,000

Total

41,661,000

12,437,000

5,161,000

Short-term loans
Current portion of longterm loans payable
Investment corporationbonds- 83 -

[Notes Related to Asset Retirement Obligations](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

1. Summary of the asset retirement obligations for the period
INV has recorded asset retirement obligations in regard to
its obligation to restore the land to its original condition
related to the fixed-term land lease agreement of Comfort
Hotel Maebashi held by INV.
2. Calculation method for asset retirement obligations for theperiodThe amount of the asset retirement obligations has been
calculated by fixing the estimated period of use at 43 years,
based on 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 period(Unit: JPY thousand)

1. Summary of the asset retirement obligations for the period
INV has recorded asset retirement obligations in regard to
its obligation to restore the land to its original condition
related to the fixed-term land lease agreement of Comfort
Hotel Maebashi held by INV.
2. Calculation method for asset retirement obligations for theperiodThe amount of the asset retirement obligations has been
calculated by fixing the estimated period of use at 43 years,
based on 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 period(Unit: JPY thousand)

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

32,977219
33,197- 84 -

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

33,197224
33,422

[Notes Related to Rental Properties](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

INV owns residential properties and hotels as core assets
principally in the Greater Tokyo area and major regional
cities with an aim to establish a portfolio focusing on bothstability and growth potential. The book value changed
during the period and the fair value at the end of the period
are as follows.

INV owns residential properties and hotels as core assets
principally in the Greater Tokyo area and major regional
cities with an aim to establish a portfolio focusing on bothstability and growth potential. The book value changed
during the period and the fair value at the end of the period
are as follows.

(Unit: JPY thousand)(Unit: JPY thousand)Book value
Fair value atBalance at theBalance at the the end of the
Change during
periodbeginning of
end of thethe period
the period
periodUse

Residences

42,293,729(295,696)

55,024,000

Residences

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

37,693,472

49,803,000

4,661,429

6,040,000

Commercial
facilities

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

1,649,608

2,380,000(3,065,573)

415,505,072

471,486,268

Hotels415,505,072(3,043,871) 412,461,201

471,512,500(3,389,066)

462,164,535

532,550,268

Total

462,164,535(10,360,253) 451,804,282

523,695,500

Commercial
facilities

4,689,226(27,797)

Hotels418,570,646

Total

465,553,602

41,998,033

Book value
Fair value atBalance at theBalance at the the end of the
Change during
periodbeginning of
end of thethe period
the period
periodUse(Note 1) Book value is the figure calculated by subtracting
amount of accumulated depreciation fromacquisition price (including acquisition-related
costs).
(Note 2) The major factors for the increase for the previous
fiscal period were construction work related tocapital expenditures.
(Note 3) The major factors of the decrease was recording ofdepreciation.
(Note 4) The fair value as of the end of the previous fiscal
period is determined based on the appraisal value or
survey value provided by Asset Research andDevelopment Inc., Japan Real Estate Institute, JLL
Morii Valuation & Advisory K.K., The Tanizawa
Sogo Appraisal Co., Ltd., Daiwa Real EstateAppraisal Co., Ltd. and CBRE, Inc.
For information related to profits and losses from rental
properties in the previous fiscal period, please refer to“Notes to Statement of Income and Retained Earnings.”(Note 1) Book value is the figure calculated by subtracting
amount of accumulated depreciation fromacquisition price (including acquisition-related
costs).
(Note 2) The major factors for the increase for the Reporting
Period were construction work related to capital
expenditures.
(Note 3) The major factor of the decrease was sale ofresidential properties and a retail facility andrecording of depreciation.
(Note 4) The fair value as of the end of the Reporting Period
is determined based on the appraisal value or survey
value provided by Asset Research and Development
Inc., Japan Real Estate Institute, JLL Morii
Valuation & Advisory K.K., The Tanizawa Sogo
Appraisal Co., Ltd., Daiwa Real Estate Appraisal
Co., Ltd. and CBRE, Inc. However, the sale priceis deemed the fair value of six residential properties ,for which the purchase and sale agreement wasentered into on December 8, 2021.
For information related to profits and losses from rental
properties in the Reporting Period, please refer to “Notes toStatement of Income and Retained Earnings.”[Notes Related to Restriction on Asset Management](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

Not applicable.

Not applicable.

- 85 -

[Notes Related to Transactions with Related Parties](Reference) Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
1

Interested parties of CIM

Classification

Name

Business or occupation

Percentage ofvoting rights
owned
(%)

Type of transaction

Transaction
amount(JPY thousand)(Note 1)

Account

Balance at the end of
the period(JPY thousand)(Note 1)Naqua Hotel &Resorts
Hotel
RentalManagement
Rental revenues
38,62742,489business
receivables
Co., Ltd.
Interested(Note 2)
party of CIM
MyStays HotelManagement
Hotel
RentalRental revenues
867,619945,735
Co., Ltd.
business
receivables(Note 2)
(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. have no capital relationship to be disclosedwith CIM. However, these tenants and operators have received an anonymous partnership investment or investment through funds thatare managed by affiliates of FIG (a subsidiary of SoftBank Group Corp., which is a parent company of CIM directly/indirectly owning
100% of its issued shares). Accordingly, INV treats Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management
Co., Ltd. as the equivalent to interested parties.

2 Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo Mitsui
Trust Bank,
LimitedBusiness or
occupation

Percentage ofinvestment
units owned(%)

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

Banking andtrust business-Transaction
amount(JPY thousand)(Note 1)
4,464,500
5,580,000

Account
Short-termloans payable
Long-termloans payable

7,463,000
27,138,000

Prepaid expenses

65,412Long-term
prepaid expenses

83,37684,908 Accrued expenses

461

Finance-related fees
(Note 2)

13,393

Interest expenses(Note 2)

(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) The terms and conditions have been determined based on actual market conditions.

- 86 -

Balance at theend of the period(JPY thousand)(Note 1)Fiscal period ended December 31, 2021 (from July 1, 2021 to December 31, 2021)
1

Interested parties of CIM
NameBusiness or occupation

Percentage ofvoting rights
owned
(%)

Type of transaction

Transaction
amount(JPY thousand)(Note 1)

Account

Balance at the end of
the period(JPY thousand)(Note 1)Naqua Hotel &Resorts
Management Co.,
Ltd.
(Note 2)Hotelbusiness-

Rental revenues

721,419

Accounts
receivable

422,909

MyStays HotelManagement Co.,
Ltd.
(Note 2)Hotelbusiness-

Rental revenues

2,182,504

Accounts
receivable

1,436,837

Classification

Interested
party of CIM(Note 1)
(Note 2)2

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

Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo Mitsui
Trust Bank,
LimitedBusiness or
occupation

Banking andtrust business

Percentage ofinvestment
units owned(%)

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

Transaction
amount(JPY thousand)(Note 1)
5,018,500
2,998,500
1,890,000

Account

Balance at theend of the period(JPY thousand)(Note 1)

Short-termloans payable

9,483,000

Long-termloans payable

25,248,000

Prepaid expenses

58,580Finance-related fees
(Note 2)

15,055Long-term
prepaid expenses

61,056

Interest expenses(Note 2)

84,076 Accrued expenses

920(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) The terms and conditions have been determined based on actual market conditions.

- 87 -

[Notes Related to Per Unit Information](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

Net assets per unit

JPY 40,203

Net assets per unit

JPY 40,370

Net loss per unit

JPY -590

Net income per unit

JPY 166

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

The basis for calculating net income (loss) per unit is as follows.

(Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
Net loss for the period (JPY thousand)Amounts not attributable to common unitholders(JPY thousand)Net loss attributable to common units(JPY thousand)Average number of investment units during theperiod (units)

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

Net income for the period (JPY thousand)-Amounts not attributable to common
unitholders (JPY thousand)Net income attributable to common units(JPY thousand)Average number of investment units
during the period (units)(3,599,688)
6,096,840- 88 -

1,014,194
1,014,194
6,096,840

[Notes Related to Revenue Recognition](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

Not Applicable

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

Revenue fromcontracts withcustomers (Note 1)

Net sales to externalcustomers

3,660,000(Note 2) 590,985

27,8703,687,870

7,815,349
8,406,334(Note 1) Revenue from the leasing business subject to the“Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13), dividend income subject to the“Accounting Standard for Financial Instruments”(ASBJ Statement No. 10) and the sale of real estate,etc. subject to the “Practical Guidelines on Accounting
by Transferors for Securitization of Real Estate Using
Special Purpose Companies” (Accounting System
Committee Report No. 15 of the Japanese Institute ofCertified Public Accountants) are not included in“Revenue from contracts with customers” as they are
not covered by the Accounting Standard for Revenue
Recognition. Major revenue from contracts withcustomers is proceeds from sale of real estate
properties.
(Note 2) The sale of real estate, etc. is the amount of proceedsfrom sale of real estate properties, less cost of realestate properties and other sales expenses, as the gain
(loss) on sale of real estate properties is recorded in thestatement of income pursuant to Article 48, paragraph
2 of the Regulation on Accounting for Investment
Corporations (Cabinet Office Order No. 47 of 2006).

2. Information utilized as the basis for understanding revenue
from contracts with customers
The information is as described in “Notes Concerning
Significant Accounting Policies” above.
3. Information on relationship of fulfillment of performanceobligations based on contracts with customers with cashflow
generated from said contracts as well as amount of revenue
and period expected to be recognized in the next calculation
period or thereafter from contracts with customers existingat the end of the Reporting Period(1) Balance of contract assets and contract liabilities, etc.
(Unit: JPY thousand)the Reporting
PeriodClaims generated from contracts with customers(balance at the beginning of the period)

1,534

Claims generated from contracts with customers(balance at the end of the period)

2,114

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

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

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

Contract liabilities(balance at the end of the period)-(2) Transaction value allocated to remaining performanceobligations
Not applicable- 89 -

[Notes Related to Significant Subsequent Events](Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

INV completed the sale of the following property on July 2,
2021.

INV completed the sale of the following property on
January 12, 2022.

Property Number: B17
Sale Date

Property Number: A79 Revest Honjin
Sale Date: January 12, 2022

July 2, 202: Sendai-shi, Miyagi

Location: Nagoya-shi, Aichi

Sendai-shi,

Book Value (Note 1): JPY 2,982 million

Book Value (Note 1): JPY 569 million

JPY 2,982 m

Sales Price (Note 2): JPY 3,660 million

Sales Price (Note 2): Undisclosed

JPY 3,660 m

Expected Gain on Sale (Note 3): JPY 590 million

Expected Gain on Sale (Note 3)

JPY 590 m

Transferee: Kubota Holdings

Transferee: Undisclosed
Kansai Residence Tokutei:
Mokuteki Kaisha: Trust beneficiary interest

Lexington Plaza Hachiman: July 2, 2021

Location

Type of Asset: Trust beneficiary interest(Note 1)
As of June 30, 2021.
(Note 2)
Sales price does not include transfer related cost,adjustment for property taxes or city planning taxes,
or national or local consumption taxes.
(Note 3)
Expected gain on sale is calculated by deducting thebook value and estimated transfer related costs fromthe sale price.
(Note 4)For an overview of the sold property, please refer to“Status of Investment Corporation’s Assets underManagement 3. Asset Portfolio of Real Estate, etc.”of “I. Asset Management Report” as described above.

Type of Asset

Trust benef

Property Number: A80 Revest Matsubara
Sale Date: January 12, 2022

July 2, 202

Location: Nagoya-shi, Aichi

Sendai-shi,

Book Value (Note 1): JPY 559 million

JPY 2,982 m

Sales Price (Note 2): Undisclosed

JPY 3,660 m

Expected Gain on Sale (Note 3): Undisclosed
Kansai Residence Tokutei:
Mokuteki Kaisha: Trust beneficiary interest

JPY 590 m

Transferee
Type of Asset

Kubota Ho

Trust benef

Property Number: A82 Alba Noritake Shinmachi
Sale Date: January 12, 2022

July 2, 202

Location: Nagoya-shi, Aichi

Sendai-shi,

Book Value (Note 1): JPY 509 million

JPY 2,982 m

Sales Price (Note 2): Undisclosed

JPY 3,660 m

Expected Gain on Sale (Note 3): Undisclosed
Kansai Residence Tokutei:
Mokuteki Kaisha: Trust beneficiary interest

JPY 590 m

Transferee
Type of Asset

Kubota Ho

Trust benef

Property Number: A83 Revest Meieki Minami
Sale Date: January 12, 2022

July 2, 202

Location: Nagoya-shi, Aichi

Sendai-shi,

Book Value (Note 1): JPY 498 million

JPY 2,982 m

Sales Price (Note 2): Undisclosed

JPY 3,660 m

Expected Gain on Sale (Note 3): Undisclosed
Kansai Residence Tokutei:
Mokuteki Kaisha: Trust beneficiary interest

JPY 590 m

Transferee
Type of Asset- 90 -

Kubota Ho

Kubota Ho

Trust benef

Property Number: A88 Luna Court Edobori
Sale Date: January 12, 2022

July 2, 202

Location: Osaka-shi, Osaka

Sendai-shi,

Book Value (Note 1): JPY 457 million

JPY 2,982 m

Sales Price (Note 2): Undisclosed

JPY 3,660 m

Expected Gain on Sale (Note 3): Undisclosed
Kansai Residence Tokutei:
Mokuteki Kaisha: Trust beneficiary interest

JPY 590 m

Transferee
Type of Asset

January 12

Location: Osaka-shi, Osaka

Osaka-shi,

Book Value (Note 1): JPY 272 million

JPY 457 m

Sales Price (Note 2): Undisclosed

Undisclose: Undisclosed
Kansai Residence Tokutei
Transferee:
Mokuteki Kaisha
Type of Asset: Trust beneficiary interest(Note 1)
As of December 31, 2021.
(Note 2)
Sale price does not include transfer related cost,adjustments for property taxes or city planning taxes,
or national or local consumption taxes. The saleprice of individual properties is not disclosed as thetransferee’s consent has not been obtained fordisclosure. Accordingly, the expected gain on saleof individual properties is not disclosed either. The
total sale price is JPY 4,450 million and the total
expected gain on sale is 1,454 million for six
properties above.
(Note 3)
Expected gain on sale is calculated by deducting thebook value and estimated transfer related costs fromthe sale price.
(Note 4)For an overview of the sold properties, please refer to“Status of Investment Corporation’s Assets underManagement 3. Asset Portfolio of Real Estate, etc.”of “I. Asset Management Report” as described above.

[Notes Related to Provision and Reversal of Allowance for Temporary Differences Adjustment]
Fiscal period ended December 31, 2021
(from July 1, 2021 to December 31, 2021)
Not Applicable- 91 -

Trust benef

Property Number: A98 Little River Honmachibashi
Sale Date: January 12, 2022

Expected Gain on Sale (Note 3)(Reference) Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
Not Applicable

Kubota Ho

Undisclose
Kansai Re
Mokuteki K
Trust bene

VI.

I.

Statement of Cash Distribution

Unappropriated retained
earnings
II . Distributions(Distribution per unit)
III. Retained earnings (deficit)
carried forward
Calculation method of distribution
amount(Reference) Fiscal period ended
June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

JPY 8,753,480,137

JPY 9,676,221,880

JPY 91,452,600
JPY 15

JPY 1,012,075,440
JPY 166

JPY 8,662,027,537

JPY 8,664,146,440

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 income as defined in Article
67-15 of the Special Taxation Measures
Act.
However, in the event that any
tax losses arise, or if no profits have beenrecorded for tax purposes due to tax
losses carried forward, the distribution
amount may be as reasonably
determined by INV. Although INV
recorded a net loss for the fiscal Period
ended June 30, 2021, INV determinedthe distribution amount to be JPY 15 perunit by reversing retained earnings.

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 income as defined in Article
67-15 of the Special Taxation Measures
Act.
However, in the event that any
tax losses arise, or if no profits have beenrecorded for tax purposes due to tax
losses carried forward, the distribution
amount may be as reasonably
determined by INV. Pursuant to thispolicy, INV determined the distribution
amount to be JPY 1,012,075,440 out of
net income of JPY 1,014,194,343.
Moreover, INV does not make excess
profit distribution set forth in Article 17,
Paragraph 4 of the Articles ofIncorporation.

- 92 -

Note
Accompanying English financial information, comprising Balance Sheet, Statement of Income and Retained
Earnings, Statement of Changes in Net Assets, Notes to financial statements and Statement of CashDistribution, have been translated from the Japanese financial statements of INV prepared in accordance with
the Act on Investment Trusts and Investment Corporations of Japan.
Under Article 130 of the Act on Investment Trusts and Investment Corporations of Japan, the Japanesefinancial statements for the six months ended December 31, 2021 have been audited by Ernst & Young
ShinNihon LLC, in accordance with auditing standards generally accepted in Japan. However, English
translation of the Japanese language report of independent auditors is not attached herein since theaccompanying English translation of Balance Sheet, Statement of Income and Retained Earnings, Statementsof Changes in Net Assets, Notes to financial statements and Statement of Cash Distribution is unaudited.
Regarding the English audited financial statements, please refer to the “Audited Financial Statements” on thewebsite of Invincible Investment Corporation: https://www.invincible-inv.co.jp/en/ir/library.html- 93 -

VII. Statement of Cash Flows (Reference Information)

Cash flows from operating activities
Net income (loss) before taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Loan-related costs
Interest income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) of derivatives
Decrease (increase) in rental receivables
Decrease (Increase) in deposits paid
Decrease (increase) in receivable income taxes
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accounts payable
Increase (decrease) in consumption taxes payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease in property and equipment in trust due to sale
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payment into time deposits
Proceeds from time deposits
Purchases of property and equipment
Purchases of property and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Payment 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
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Borrowing related expenses
Payment of distributions of earnings
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)(Unit: JPY thousand)Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)(3,599,083)
3,889,784
6,200
508,348(96)
652,386
51
64,638478,137(85,458)1(268,549)
17,621(578,858)
16,542(89,059)
17,773(59)0
129,029
1,159,352
96(655,468)(605)
503,374

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

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

61,091,000(33,533,000)
1,582,000(33,393,000)(527,105)(93,221)(4,873,327)(32)
5,886,095
10,840,044
16,726,139(Note) Statement of cash flows is prepared based on the Regulation on the Terminology, Forms, and Preparation Methods ofFinancial Statements (Ministry of Finance Order No. 59 of 1963, as amended) and attached as reference. This
statement of cash flows is not subject to audit by an auditor pursuant to the Article 130 of the Investment Trust Act, and- 94 -

thus has not been audited by an auditor.

[Notes Concerning Significant Accounting Policies] (Reference Information)
By Period
Item
Cash and cash equivalents as stated inStatement of Cash Flows

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
Cash and cash equivalents as stated in
the Statement of Cash Flows consistof cash on hand and cash in trust,
floating deposits, deposits in trust andshort-term investments that are veryliquid and realizable with a maturityof three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)
Cash and cash equivalents as stated in
the Statement of Cash Flows consistof cash on hand and cash in trust,
floating deposits, deposits in trust andshort-term investments that are veryliquid and realizable with a maturityof three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

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

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)(As of June 30, 2021)(Unit: JPY thousand)Cash and bank
6,311,545
deposits
Cash and bank6,528,498
deposits in trust
Time deposits withover three months(2,000,000)
deposit period
Cash and cash
10,840,044
equivalents- 95 -

Fiscal period ended
December 31, 2021
(from July 1, 2021 to
December 31, 2021)(As of December 31, 2021)(Unit: JPY thousand)Cash and bank
12,759,582
deposits
Cash and bank
6,766,557
deposits in trust
Time deposits withover three months(2,800,000)
deposit period
Cash and cash
16,726,139
equivalents

“My Number” is issued to all citizens and residents of Japan and is necessary for taxation purposes oninvestment units. Thus, it is necessary for unitholders to notify their brokerage with their “My
Number.”Usage of “My Number” in investment units-related affairs“My Number” is recorded on the payment record and the payment record is filed with the relevant tax
authority pursuant to laws and regulations.
Major payment record*Payment record regarding cash distribution

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

Unitholders whose investment units are managed in brokerage accounts
Each brokerage
Unitholders who have no brokerage accountTransfer Agent Department, Sumitomo Mitsui Trust Bank, Limited
Toll-free Telephone Number 0120-782-031- 96 -Domestic Portfolio Map (As of February 28, 2022)

No. of Properties(Note 1)126

Others(Note 1)

No. ofResidential
Properties

84

41

1

No. ofHotels(Note 1) Including Sheraton Grande Tokyo Bay Hotel, underlying assets of TMK investment(Note 2) For properties corresponding to the number and their overview,please refer to pages 34-40.

- 97 -

- 98 -

Financial Conditions
INV refinanced bank loans of ¥62.6 billion in total during the December 2021 fiscal period, and refinanced¥8.5 billion of bank loans in January 2022.
INV's cash on hand, which has increased due to the sale of 13 residential properties in December 2021 andJanuary 2022, will be utilized to repay part of existing loans that will come due. INV endeavors to enhance
the financial soundness by lowering the LTV.

◼ Investment Corporation Bonds
Bonds name

IssuedDate

Term(years)Balance(JPY mn)

AnnualInterest Rate

Rating

1st Series Investment
Corporation Bonds

May 25, 2018

5.0

1,000

0.40%

A (JCR)

2nd Series Investment
Corporation Bonds

May 25, 2018

10.0

1,000

0.80%

A (JCR)

3rd Series Investment
Corporation Bonds

Oct. 12, 2018

5.0

2,000

0.55%

A (JCR)

4th Series Investment
Corporation Bonds

Oct. 28, 2019

5.0

1,000

0.48%

A (JCR)

5th Series Investment
Corporation Bonds

Oct. 28, 2019

10.0

2,000

0.90%

A (JCR)

6th Series Investment
Corporation Bonds

Mar. 13, 2020

10.0

1,200

0.85%

A (JCR)

Total

8,200

◼ Lender Formation (as of February 28, 2022)- 99 -

◼ LTV (based on appraisal value)(Note 1) and Weighted Average Interest Rate(Note 2)◼ DSCR(Note 3)◼ Rating
Rating Agency

Rating Object

RatingOutlookJapan Credit Rating
Agency, Ltd.

Long-term
Issuer Rating

A

Stable(Note 1)

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

- 100 -

Overview of Unitholders/Investment Units

Historical Unit Price(Note)

Unit prices indicate the closing price on the TSE market. TSE REIT Index has been indexed, assuming the closing price of TSE REIT Index asof January 4, 2013, as the same as the closing price of INV’s unit on the same day.

.

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

- 101 -

Annual Schedule- 102 -

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

Correspondence(Telephone Assistance)

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

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

- 103 -

Notification(Notice of Dividend Payment)
The 2008 amendment of the Special Taxation Measures Law (Act No. 23 of April 30, 2008) mandated thesending to unitholders a “Notice of Dividend Payment” stating the dividend amount, amount of taxes
withheld, and the like for dividends payable in and after January 2009. If you collect dividends via a“Dividends Receipt,” please view the “Notice of Dividend Payment” sent alongside it. If you have specified
a wire transfer, the “Dividend Statement” delivered with the dividend payment is the “Notice of Dividend
Payment.”(Characters for Addresses and Names of Unitholders)With the digitization of investment securities, if there are Chinese characters in your address or names that
the Japan Securities Depository Center (JASDEC) has not included in the transfer system, JASDEC registers
them in the Investors’ Registry by converting part or all of the characters to those that JASDEC has includedin the transfer system or to katakana. Please be aware that correspondence may be addressed using
characters that JASDEC has included in the transfer system. Please inquire with your brokerage regarding
characters registered for your address and name.
Inquiries
For inquiries regarding INV: Consonant Investment Management Co., Ltd.
TEL: 03-5411-2731 (Main)
Weekdays 9:00-17:00- 104 -